China - North China Plain Agriculture Project

Documentof The World Bank FOR OFFICIAL USE ONLY Report No. 7736 @ PROJECT PERP-RMANCEAUDIT REPORT CHINA NORTHCHINAPLAIN AGRICULTUREPROJECT (CREDIT 1261-CHA) APRIL 28, 1989 OperationsEvaluationDepartment document ITh& hasa resticted distibuion andmay be usedby reciplertsin the only pedormance of theroffickid dutis.Its may notothendse contents be disclosed without WorldBank authorization.  WEIGHTSANDMEASURES 1 Meter tm) = 3.28 Feet (ft) 1 Kilometer (km) - 0.62 Miles 1 Hectare (ha) - 2.47 acres = 15 mu 1 Kilogram (km) = 2.2 pounds (1b) = 2 jin 1 Ton (t) - 1,000 kg - 2,205 lb GLOSSARYOF ABBREVIATIONS ABC Agricultural Bank of China CATEC County Agro-technical ExtensionCentre DAP DiammoniumPhosphate ERR EconomicRate of Return IDA International Development Association ICB International Competitivo Bidding IWC Institute of Water Conservwcy and Hydroelectric Power Research MAAF Ministry of Agriculture, Animal Husbandry and Fisheries M&E Monitoring and Evaluation MWREP Ministry of Water Resources and ElectricPower NCP North China Plain O&M Operation and Maintenance PMO Project Management Office SAR Staff Appraisal Report SDR Special Drawing Rights GOVERNMENTOF CHINA FISCAL YEAR January 1 - December 31  10O fIKiAUN ONLY n* WORD SANK D.C.20433 W&"alL~tn USA April 28, 1989 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Performance Audit Report on China North China Plain Agriculture Project (Credit 1261-CHA) Attached, for information,is a copy of a reportentitled "Project Performance Audit Reporton China - North ChinaPlain Agriculture Project (Credit 1261-CRA)" prepared by the Operations Evaluation Department. Attachment I Thi documentha samUtud dbution NaW of thdr offic dude Its conunt ntsmy mWa be 0d by ay in th pufi liplma odwm be dckhad wihout WoddBSnkmihdbutln not  FOROMCAL USEONLY PROJECT AUDITREPORT PERFORMANCE CHINA PROJECT NORTHCHINAPLAINAGRICULTURE (CREDIT1261-CHA) TABLEOF CONTENTS Paz. No. PROJECT AUDITMTNDORAND PLR1ORNANCE Preface......................... ... ............ * i BasicData Sheet . .i. Evaluation Sulmary v I. BACKGROUND 1....................................... 1 The CountryEconomy ............................. 1 The Agriculture Sector ....... 2 The Project....................................... 3 EXPERIENCE II. IMPLEMENTATION ......................... 4 ProjectOutcomeu.................................... 5 III. FINDINGSAND ISSUES.................. 7 ProjectDesign................................... 7 Bank-Borrower Cooperation .... a8 ProjectOrganisation .............................. 8 ProjectSustainability ............................ 9 ProjectReplicability ............................ 10 of RuralEnterprises Annex: Promotion 12 PROJECT CWCLETION REPORT 15 I. INTRODUCTION 17 II. PROJECTFORMULATION 18 III. PROJECT IMPLEMENTATION ................ . 20 IV. INSTITUTIONAL PERFORMANCE AND DEVELOPMENT ............. 27 V. PROJECT IMPACT 34 VI. IDA PERFORMANCE 44 VII. CONCLUSIONSAND LESSONSLEARNED....................... 46 CHART SCHEDULE 1. IMPLEMENTATION OF PROJECT 2. ORGANIZATaON MANAGEMENT AND MAINTENANCE OF OPERATION 3. ORGARIZATION Thisdocument hasa restricted onlyin the performance and maybe usedby recipients distribution of theirofficial maynototherwise duties.Its contents without be disclosed World Bankauthodzation. TABLE OF CONTENTS(Cont'd) UBE 1. County and Project Area Data 2. Physical Targets and Achievements 3. SAR and Revised Drain Design Parameters 4. Tree Planting - Actual Achievementsin Province-wideProject Areas 5. Agricultural Research and Extension - Facilities and Equipment Provided under the Project 6. Compakison of Appraisal and Actual Costs 7. Allocation of Credit Proceeds 8. Cumulative Lending of Funds Paid by Farmers 9. Soil and Water Study - Sampling andAnalysis Statistics 10. Anhui Project Areas Changes in WaterloggedArea in Relation to Expansion of Irrigationand Drainage Facilities 11* Henan Province Project Areas Changes in Salinity/Alkalinity Levels in Relation to Expansion of Irrigation and Drainage Facilities 12. Shandong Province Project Area: Changes in Salinity/Alkalinity Levels in Relation to Expansion of Irrigation and Drainage Facilities 13. Land Use - Appraisal Projection and Actual Changes 14. Cropped Area, Cropping Intensity and Production - Appraisal Projection and Actual Achievements 15. Crop Yields - Appraisal Project and Actual Achievements 16. Anhui - Per Hectare Cost of Crop Production 17. Henan - Per Hectare Cost of Crop Production 18. Shandong - Per Heatare Cost of Crop Production 19. Financial Budget in Tree Planting 20. Anhuit Cropped Area, Yield and ProductionUsed for Analysis 21. Henan: Cropped Area, Yield and Production Used for Analysis 22. Shandong: Cropped Area, Yield and Production Used for Analysis 23. Anhui - Farm Budget for an Average 0.7 ha Holding 24. Henan - Farm Budget for an Average 0.7 ha Holding 25. Shandong - Farm Budget for an Average 0.7 ha Holding 26. O&M Costs With and Without Project 27. Computation of Economic Prices 28. Financial and Economic Prices 29. Economic Analysis - Anhui Province 30. Economic Analysis - Henan Province 31 Economic Analysis - Shandong Province 32. Sensitivity Analysis COMMENTSFROK TER BORROWERt Attachment 1 - Ministry of Agriculture MhPS" IBRD Nos. 16135, 16375  AUDIT REPORT PROJECT PERFORMANCE CHINA NORTH PROJECT CHINA PLAIN AGRICULTURE (CREDIT 1261-CHA) PREFACE Performance Audit Report (PPAR) on the North 1. This is a Project Project, involving an IDA Credit in the amount of China Plain Agriculture to the People'sRepublicof SDR 54.0 million (US$60.0million equivalent) irrigationand drainagefor China. The project was designed to provide provinces. The credit was three about 200,000 ha in nine counties and on October 7 of the same year approvedon June 15, 1982, became effective on December 31, 1987. The final and was closed, as initially planned, however, took place in October 1988. disbursement, Audit Memorandum 2. The PPAR conists of the Project Performance (OED) and the Operations Evaluation Department (PPM) prepared by the Bank Cooperative by the FAO/World Project CompletionReport (PCR)prepared PCR, the Staff Appraisal and Programe. The PPAM is based on the attached the transcripts of the the President's Reports, the losn documents, was considered, on a the project ExecutiveDirectors'meetings at which Bank staff. An OED mission with study of project files, and on discussions the effectiveness of the visited China in October 1988, and discussed Agriculture, Animal Husbandry and Bank's assistancewith the Ministry of at the central,provincialand Fisheries,the ProjectManagement Offices China. Their kind cooperation county levels,and the Agricultural Bank of preparation of this report is gratefully and valuable assistancein the acknowledged. of the project 3. The PCR provides a complete account and assessment and the project of the Bank experience,and discusses the performances the main reason for success, on executingagencies. The PPAM elaborates b6tween the Bank and project design, the excellent cooperation the simple ProjectManagementOffices. The the Borrower and the efficiency of the project sustainability and PPM also reviews the prospects for replicability. Borrower on January 25, A copy of the draft report was sent to the of Agriculture, Cumments received from the Ministry 1989 for couments. to the PPAM. Office of External Economic Relations, are attached assistance rendered by the Go0ernment of China and The valuable 'visit is gratefully project staff met in the course of the country acknowledged.  PRRMAC R&OJECT AUDITa WUM TH oCHP PLAUpAIIAOlLTUlR PtECT (CEIDT 1261-M) SAIC DATA ET PROJECT K"EY L\TA Appraisal Actual or Acual as S of lEaectation Current Eat. Arwaleal Est. Total Projelt coot (USI eUll'o) 17.5 16.6 77 tredit Anunt (SIR el mIllO) 54.6 54.6 13 Date Physical Compoeo_ Completed /St U/t Ecemic Rato of Retrn fU 53 137 Insttutional 'arnane Oood UAIVE DISBIJRSEMNT ANDACTVAL ESTIUATED FY8 FY4 MM FYN f i i Appraieal Etimate (SR 1million) 1.6 12.6 27.6 48.2 54.6 - Actual (SIR million) 5. 16.J 8 58 41.8 48.2 85.1 54.4 Actl as of Appralal () 120 181 9s U 36 53 Date of Final Diburemott Octobe 1S4 136 DATES PROJECT Actnl se S of Ortitnal Plan Actual Oriminal Plan Prqeration p/ 19" Pro-appraisal May/June 1o1 Appraisal October 1361 Negotiations April10-26,162 Soard Approval June 15, 1962 Crdit Signing June 8, 192 Crditt Effectiveness October 7, 1912 Crdit Closing Deember 81, 1367 Deceme U81. 07 ist STAFFIITS ei e2 3 es IL I7r iotal Preappraisal 51.6 10.5 - - - - - - 61.5 Appraisal 19.6 54.1 - - - - - _ 7. Negotiation - 12.4 - - - - - - 12.4 Supervition - - 88.4 18.6 15.1 2.O 4.4 8.6 M.1 Other ±.1 1.1 - - _-- -_ - - . Total 71.4 70.6 83.4 18.6 15.1 2.0 4.4 85.0 2U O.  - Iv - DATA MISSION TeM Days Specializations Type of Mamieon Date Msber In Flld RDresented c/ Status d/ Trend */ Problem Prparatton k/ 11/8 6 126 *,l,o,n, Pre-appraisal U/S1 7 1in *,e,g,mI Appraisal 1O91 6 na. *,-,I Supervision 1 10/02 4 of a/ o,s,g,d 1 1 Supervision 2 06/68 a 140 g/ *,O,t,t,a 1 1 M,T Sueervision 688/84 8 o / A, 1 1 u Supervision 4 84/85 S 48 g,*.. 1 1 N Supervision 5 16/6 2 6 i 1 1 ComplIelen 19/37 4 80 *,, PROJECT OTHER DATA Borrewer PeOple- Republic Of China FRocal Year of Borromer January 1 - December 81 Na, of Currencys Yuan (Y) ExchangeRat (V/WI) Appralial Average (October 19S1)Y 1.7 a USS1.41 Intervening Year. (1982-1985) 6 USS1.J0 Y 2.5 Completlon YVer (15?) Avers"e Y 8.7 a US1.66 g/ The project was originally prepared by tho engineering and ogricultural staff of the countios withhelpfrom provincial Land Utilization Bureaus, the Chinse Academy of Agricultural Science, ond the Land Utillzatlon 8ureu of the Utnistry of Agelculture. ki A Bank preparation mission reviewed the above proposals(footnote 1) and made certain reco_natTone, on the batsiof Whbic the original proposals weremodified. m/ a a Agriculturalist, a a Soil Speciallst, * a Agricultural Economist, I a Irrigation/Dre1nae Engin er, t a Tubwoll Specialist, d a Disbursemente, *m. Agrtcultural Macbhinry, I a Lawyer, g - Hydrog ologist. I 1 * Problem free or Minor Problems, 2 a ModerateProgloes, J * Major Problem. 1 * lproving, 2 a Stationary, J a Deteriorating. I/ ji T a Techaticl, Ma Managerial, P a Political, F a Financial, 0 Other. MissIon also Involved In other sector and project work. M/  -v - AUDIT REPORT PROJECT PERFORMANCE CHINA NORTHCHINAPLAIN AGRICULTUREPROJECT (CREDIT 1261-CHA) SUMMARY EVALUATION Introduction 1. The project was the first Bank-Groupsupportedoperation for the agriculturalsector in China. From project identification in 1980 until project completionin 1987, the project period coincidedwith major reform in the national economy and the agricultural sector. The transfer of land use rights to individual farmers, dismantling of communes, increasing liberalizationof prices and markets and decentralizxe-on of investment dec'tsion-makinghave profoundlyrestructuredthe rural eet.miy and resulted in rapid growth in agriculturalproduction. 2. Government'sobjectivesin the agricultural secto are to increase and diversify agricultural production and raise rural incomes and employment opportunities. With about 800 million people living in rural areas, agriculture is the main source of employment in China and accounts for 34Z of GDP. While only 10S of the country's total area is cultivable, the North China Plain, covering about 300,000 km2 is one of the most productive and populated regions of the country. However, about 201 of the North Plain area is adversely affectedby salinityand waterlogging, mostly due to insufficient drainage. Pilot projects in the area had shown, however, that with suitable irrigation and drainage facilitiesthese lands could be reclaimed and become highly productive for a wide range of crops. Prolect Obiectives 3. The project was the first large-scale attempt to bring new land into production and improve productivity on existing farms in the North China Plain by controlling soil salinity, waterlogging and drought. The project, which was expectedto serve as a model for future developmentin the North China Plain, was designed to improve or construct irrigationand drainage facilitieson about 200,000 ha, coveringparta of nine counties in three provinces: Anhui, Henan and Shandong. Other project components Included expansion of rural electrification, improvement or construction of rural roads, land levelling, procurement of farm inputs and equipment, strengthening of support services and studies to help formulate future developmentplans in the North China Plain. A population of about 1.2 million, or about 280,000 families, was to benefit directly from the project through increasedproduction of wheat, corn, cotton, oilseeds and rice. Total project cost was estimated at US$177.5 million. The IDA Credit of US$60.0 million equivalentwas expectedto be disbursed over five years.  - vI - Implementation Experience 4. The Credit became effective in October 1982 and the project was implemented within the basic framework and time frame envisaged at appraisal, with only minor changes in the irrigation and drainage network design. Nearly all excavations and construction were done by hand, using labor mobilized from among the benefiting farm communities during tie off- season. The quality of work has generally been excellent. More rural electrification and rural roads than planned were constructed. The transfer of land use rights to individuals during project implementation resulted in higher demand than expected for farm inputs and machinery. The training and study programs were satisfactorily implemented. At project completionin June 1987, total project costs in Yuan terms were about 272 higher than estimated at appraisal, mostly due to upward revisionof some physical targets,but 232 lower in US$ terms due to depreciation of the Yuan vie-a-vis the US$. Project Results 5. Project objectiveshave been fully achieved. The overall cropping intensityhas increased from 1381 to 1631. Yields of all crops have exceededappraisal targets and are about two to three times higher than pre-projectestimates. Total production increased by about 1661. Net incomes of farmers have increased by 63Z in Shandong, 1001 in Henan and 1141 in Anhui. As it is difficult to isolate the benefits due to project investments from those due to policy .eforms, the PCR has recalculated project ERR by using as a base year the 1982 average yields, which were already above appraisal estimates at full development. Based on this assumption, the project ERR was estimated at 561 (30Z at appraisal). This high ERR partly z-"ults from benefits of sunk costs but also reflects higher production than expected. 6. Indirectbenefitshave also resulted from the promotion by project authoritiesof small-scalerural enterprises: agro-processing facilities, livestockand fisheries enterprises, paper mills, buildingmaterials, etc. which were financed by funds recovered from loans to farmers. The amount of funds recycled for such financing was estimated at US$16.6 million by mid 1987. Sustainability 7. As the drainagetechniquesand monitoring of the water table are still relativelynew concepts, sustainability of project benefits largely depends on how the drainage system will be operated and maintained in the coming years. In the three provinces, there are indications that maintenance of the drainage network is not as good as expected, although excellent plans for O&M have been designed with Bank assistance. The audit recommends that a small component for provision for technical assistance and training be Included in a future Bank (or UNDP or other donor)-supported agricultural project to allow for a continuedassistance to the North China Plain project in support of O&M. Of critical importance for the sustainability of project benefits will also be the ability of provinces and counties to meet the Increasing demand for agricultural inputs and services.  - vil - FindinLs and Lessons 8. The project was an unquestionable success. While the project has largely benefited from on-going policy reforms, some specific factors of success can be identified. -- As the project was the first in the sector and the ability of provincial authorities to Implement projects was unknown, the Bank made the right decision to keep the project simple and based on a tecbnology already tested in the country. -- Although the Bank's limited technical and Institutional inrut to the project was criticized within the Bank at the appraisal stage, the audit concludes that Bank staff made a valuable contribution in improving the irrigation and drainage design and preparing good O&M and monitoring systems. Bank assistance in procurement and disbursement matters has also been highly appreciated In the three provinces. For implementing agencies with no experience with World Bank projects, training in Bank recording and accounting requirements, along with regular monitoring of performance in meeting them, Is essential, if they are to be effectively met. -- Project organization, based on existing structures at the central, provincial and county levels combined with decentralization of management proved an Important factor of project success. The high degree of commitment at all levels of government Is a striking feature of the project. -- Project management offices (PMOs) have been quite successful in recovering funds from farmers, recycling these funds Into small enterprises, and promoting rural development. However, If PMO's role Is to expand in the future, PMOs will have to Improve their financial capability and revise the terms sad conditions of their sub-loans. -- The demonstration objactive of the project has been fully achieved, resulting in Improvement of irrigation and drainegi being undertaken by the farming population In adjacent non- project areas. In addition, a follow-on Bank-supported project is expected to replicate in other regions the technology and development approach experienced In this project. -- The project was a good example of a self-help development strategy, which has also proved successful in some other countries, and could be replicated in other regions of the world.  PROJECT AUDITMEMORANDUM PERFORMANCE CHINA CHINAPLAINAGRICULTURE NORTH PROJECT (CREDIT1261-CHA) I* ACKGROUND 1. Following China's change of representation in the Bank Group in May 1980, the Bank undertook considerable economic and sector work In the country. An introductory economic report on China ' past developaent performance, economic system and future prospectslI vas Issued by the Bank in Jun. 1981 The report was a preliminary step toward an understanding of China's economic progress and potential, as well as a framework for future Bank assistance to the country. The Country Economy 2. The period covered by this audit coincide. with a series of changes In China's national economy and agricultural sector. At the tine of project preparation in 1980, China's economic system was characterized by public ownership, centralization of economic decisions, and little reliance on markets and prices. Past development efforts had been directed toward lndustrialization, mostly heavy industry and diminution of the wcrst aspects of poverty. The share of Industry in GDP (around 40S) was similar to the average for middle-income developing countries, but agriculture still accounted for 342 of GDP and over 702 of employment--similar to the average for low-income countries. Per capita GNP was estimated to have grown at an annualrateof 2.5-3.01 In the 1957-79 period, with a strong Increase In the last two years, but not high enough to pull China out of the low-income group. Unlike most otherdeveloping countries, therewas comparatively little inequality in China. Despite slow growth of the average level of consumption, low-income groups were better off in terms of basic needs than their counterparts In most other poor countries. All Chinese had access to work, basic food supply, education, health care and family planning services. Urban Incomes, however, were on average more than double rural incomes. 3. Since 1977, there has beer intense discussion within China on the means and the ends of economic development. One focus of the debate has been criticism of the then prevailing economic system. While its record In mobilizinghuman resourcesand reducingpovertywas outstandinglygood, the stateeconomy was InefficientIn convertinginputs Intooutputsand In -aatching supply with demand. These shortcomings have prompted a set of reform aimedat decentralizing decision-making and stronger incentives to seek efficiencyand servethe needs of consumers.Many s:ateenterprises were allowedto retaina smallpart of theirprofits; the scopefor private 11 Chinat Socialist economic Development (in nine volumes).  - 2 - and collectiveproduction in urban areas wa e.ilargedlthe number and variety of commercial channele were increased and joint ventures were encouraged. 4. Further reformswere introduced in the late seventies and early eightiess decentralization of investment decisions;restructuring of the rural economy, liberalization of prices and markets. As a result, GNP has increasedat an average of 10 annually. Investmenthas been strong, averaging 38Z of GDP in recent years. By 1985, however, inflationary pressures became noticeable, when the official retail price index climbed about 92 and free market prices increased by 172. Each round of liberalization also triggered new investments with a subsequentstrain on the balance of payments. The Government's responsehas been to put on hold proposed major price adjustmentsand restrict investmentwhile focussingin the short term on public enterprise reforms. The Agricultural Sector 5. With about 800 million people living in rural areas, or 852 of the total population,agricultureis the main source of employmentin China. Gross agricultural output grew in real terms at 2.12 p.s. in 1957-77, and over 62 in 1977-80, reflecting Improved economic incentives. Unique features of China's agriculture include the small portion of the total land area which is cultivated (about 102), and the large proportion (452) of the cultivatedarea which is irrigated. About a third of the total cultivated area is considered low-yielding and subject to drought, waterlogging or flooding. 6. From 1966 to 1976, productivitygrowth in agriculturewas retarded by a misguided 'grain first' policy, low price of agricultural products, excessive high-level Intervention in production decisions and an inefficientcollectivefarming system. Under the commune system, land and most capital were owned and used collectively by productionteams of 30-40 households (the equivalentof small villages). Each team was part of a brigade, and each brigade part of the commune. A characteristic of the commune system was its ability to mobilize labor for developmentpurposes. In the 1950s, huge irrigationand flood control projects, involving tens of thousands of peasant workers were carried out in the North China Plain and the Chang .'4angbasin. The total irrigatedarea of the country increased from 16 mi±lion ha to 45 million ha from 1949 to 1979. However,priorities were not always well selected, in part because technical and economic criteriawere largely ignored for long periods. For example, some of the larger irrigationprojects require continuing subsidies to be viable and flood control works were Implemented before proper study and have later required substantial redesign. Erosion, siltation and salinity also resultedfrom poor design of a number of irrigationprojects. Failure to combine irrigationwith drainage works as well as poor design and poor maintenance of drainage systemshave been a persistentproblem in the North China Plain, and frequentlyled to soil salinizationand waterlogging. 7. Before the policy reforms of the late seventies,the Government controlledthe marketing and pricing of agricultural products and inputs, and fixed productionquotas for the major crops, which were purchased and distributedby state-managed agencies at pro-determinedprices. The price structurewas built around a complex quota, above quota, and negotiated system, whereby after fulfilling their obligations for quota and above quota, producers could sell their remaining surplus at a higher price.21 In 1979, in order to improve living standards of farmers and provide incentivesfor increasedproduction, the Governmentmade major adjustments in the level and structure of producer prices. Prices were increasedby 151 to 251 and operation of free markets was expanded. Experimental reforms were also introducedin some pilot areas by establishing the farm household as the unit of agricultural production and management. This shift in control over resourcesfrom collectiveto individualcombinedwith the new price policy resultedin improvedproducer benefits,which in turn induced farmers to use more agricultural inputs and led to better farm management. 8. In the early eighties, and about one year after Board approvalof the project under review, the dismantling of communesand the transferof land use rights to individuals was extended throughoutthe whole country. Under the new 'Production Responsibility System,, management of collectively-owned land is contracted to households,usually in proportion to household size or labor force. The household is responsiblefor payment of taxes, contribution to welfare funds and provision of labor to construct or maintain public infrastructure. All remaining revenues may be retained by the household. Finally in 1988, China's constitution was amended to allow private transfer of land leases. The Project 9. The project was the second of 43 Bank-supported operationsin China and the first for the agricultural sector. The project was designed to provide improveddrainageand irrigation for about 200,000 ha, in nine countiesof three provinces (Anhui, Henan and Shandong)both north and south of the Yellow (Huang) River. Main project componentsincludedthe rehabilitation of existing river channels and main drains; the construction of lateral and sublateraldrains; the construction of pumping stations for drainageand irrigation; the construction of tubewells,electric lines and rural roads, and land levelling. The project also includedthe provision of agriculturalcredit for the purchase of inputs,mostly fertilizerand insecticides, a program to strengthenresearchand extensionservices,tree planting along field borders, and an agricultural study in the North China Plain to help formulate future agricultural development plans. Total project cost was estimated at US$177.5 million, with a relativelylow foreign exchange component (US$49.2 million) because the earthworks,the constructionof roads and bridges and tree plantingwere expected to be carried out mostly by manual labor using local materials. The Bank Credit of US$60.0 million was expectedto be disbursed oNver five years from 1982 21 Quota procurementprices applied to annual quota responsibilities of each team (amounts which in the project area had not changed since 1971). Above-quota prices exceeded quota prices by 501 for grains and oilseeds, 302 for cotton and varying amounts for other crops. Negotiatedprices applied to sales in excess of above-quotatargets; in the project area they exceededabove-quotaprices by 10-201.  -4- to 1986. A populationof about 1.2 million, or about 280,000 families,was to benefit directly from the project through increasedproductionof the main cropst wheat, corn, cotton, oilseeds and rice. 10. The nine counties included in the project area were selected because (i) pilot projects had already demonstrated the efficiencyof irrigationand drainage techn'ques in these areas, and (ii) the counties were quite representative of the 6 million ha of land affectedby salinity and waterloggingin the North China Plain. The project was prepared in 1980 by the Water Conservancyand Agriculturalstaff in the counties,with the assistanceof relevantprovincialand central governmentagencies. The projee.t was expectedto be a model for similar and future developmentin the North China Plain. Control of salinity,waterloggingand droughtwas to be attainedthrough a combination of horizontal (drains)and vertical (tubewells) drainage, dual purpose canal networks for drainage and irrigationand groundwatertable control. 11. Project organization was based on existing structures of the Ministry of Agriculture at the central, provincial and county level. However, to ensure the timely executionof the project,project management offices (PMOs) were established at each of the three levels. County PMOs were to be responsible for the construction of lateral and sublateral drains, rural roads, pumping stations and related electrification. Provincial PM0s would be responsible for the excavation of the main drains, which often traverse a number of counties. The Central PMO assistedby a technical advisory group would coordinate project execution in the nine counties, would liaise with other Ministries and central agencies, and be responsible for project monitoring and evaluation. The Agricultural Bank of Chin" (ABC) was to channel project funds from the Central Government to the provinces and counties. ABC would also on-lend funds to collectives and farmers for the construction of tubewells and the purchase of farm equipment, pumps, fertilizer and agrochemicals. II. IMPLEMENTATION EXPERIENCE 12. The IDA Credit became effective in October 1982 and the project was largely implemented within the time frame .-%visagedat appraisal. Some changes in the irrigationand drainagedesign were made in 1984 to minimize loss of scarce arable land and allow for the use of drainage channelsfor irrigationconveyance. As a result, main and branch canals were deepened while volume of excavation for laterals and sublaterals was reduced (detailsin PCR, paras. 3.2-3.3) At project completion,some 1,600 km of existing river channels and drains had been enlarged; 2,300 km of lateral drains and 5,500 km of sublateral drains were newly constructed. About 17,800 bridges and culvertswere built. More than 10,000 tubewellswere sunk or repaired,and equippedwith pumps and motors. More than 5,700 km of electric lines and 1,300 km of rural roads were constructed. About 72,000 ha of land was levelled. Most of the project works had been constructedby hand, using labor mobilized during the off-seasonamong farm communitiesbenefittingfrom the project. A large part of the labor and materials contributedby the rural communities was not compensatedin cash.  - 5 - 13. Tho project construction period coincided with the introduction in the project area of the 'production responsibility system". The transfer of land use rights to individuals, the dismatling of communes and the increasing liberalization of pricing and marketing resulted in higher demand than expected for small tubewell pumping units, small agricultural machinery, fertilizer and agrochemicals (details in PCR, paras. 3.09-3.11). Training of extension staff and farmers was completed as planned. The program of studies was fully implemnted (PCR, paras. 3.14-3.18). At project completion in June 1987, total project costs in Yuan terms were about 27S higher than estimated at appraisal, mostly due to the upward revision of physical targets, but 23Z lower in US$ terms due to the depreciation of the Yuan vis-a-vis the dollar. The cost of research and extension, training and studies was lower than estimated at appraisal as the planned external assistance was not fully used for these components and local experts were used instead of foreign consultants for the agricultural studies in Shandong Province. 14. The project institutions set up at the central, provincial and county levels have played an important role in ensuring successful p-oject implementation. Overall PMOs have performed well, as evidenced by the timely complet'on and the satisfaccory standard of project works. The county PMOs played the most important role in project execution. Their close relation with the farming population facilitated labor mobilization, as well as signing of contracts with townships, brigades and teams for carrying out the civil works. As expected, project funds were channelled through ABC to provincial and county PMOs. Subloans to farmers for the purchase of farm inputs and equipment were also handled by ABC, but recovered by PMOs, which used recovered funds for promoting rural development. This highly decentralized and grassroot project management system was undoubtedly an important factor for successful project implementation (paras. 24-28 below). Project Outcome 15. At appraisal, the total cropped area (245,000 ha) and cropping intensity (1381) were expected to remain about the same. The major benefits from improved irrigation and drainage were to be yield increases and crop diversification, with reduced area under foodgrains and increased area under cash crops (mostly rice, oilseeds and cotton). 16. The Production Responsibility System was introduced in the project area in 1982-83. The collective farming system was abolished in the three provinces and land was distributed by the township authorities among farming families on an individual basis. Area cultivated by each family is now about 0.6-0.7 ha, subdivided in 4 to 6 plots in order to share equally the different qualities of soil. This assignment of individual plots created some problems in laying out farm ditches, but project staff and farmers were able to overcome difficulties. Due to the small size of fields, farm operations are mostly manual, although the demand for draft animals as well as small two-wheel and four-wheel tractors is increasing. A relay-cropping system, whereby a second crop (maize or cotton) is planted between rows of preceding crops (wheat) before harvest, and multiple cropping such as wheat followed by rice or soya, are usual practices.  -6 - Liberalization of prices and markets during project Implementation provided a strong Incentive to project farmers to increase production and to use more fertilizer(79,000 tons) than anticipated (47,000 tons). Finally,as a result of project works the irrigatedarea increased by 100l, the drained area by about 1901, and the salinelalkaline area and wasteland were reduced by 86Z. 17. The overall cropping intensity in the project area is now estimatedat 163X (1382 without project and expected to remain unchanged). Yields of all crops have exceeded appraisal target.s and are about two to three times higher than pre-project estimates. Total crop productionwas 942,200 tons in 1986 compared with 354,100 tons estimatedbefore project start, an increaseof 1662. Net incomesof farmers are estimatedto have increasedby 632 in Shandong, 1002 in Henan and 114S in Anhui comparedwith the pre-project situation. The extent to which these remarkable achievements are attributable to the project only or to policy reforms is difficultto ascertain. Cropping intensityand productionin non-project areas have also increased considerably, altbough yields remain 72 to 302 lower depending on the county. In addition, it is difficult to quantify the effect of project irrigationand drainage works only one or two years after completion. For the purpose of re-estimating the project ERR, 1982 average yields--which were already above appraisal estimates at full development--have been used by the PCR for the base year instead of the pre-projectyields (detailsin PCR, para. 5.24). Data on yields obtained In non-projectareas have also been used. Based on the above assumptions, the ERR of the whole project is re-estimated by the PCR at 562 (302 at appraisal)with the followingbreakdownby provinces Anhui - 332; Henan - 752; and Shandong- 642. Differences in the ERRs estimated for the three provinces are a reflection of various factors: different cropping patterns,higher investment in Anhui (equivalent to US$647/ha)than in Shandong (US$596)and Henan (US$451), and larger benefits from sunk costs In Henan and Shandongprovinces. 18. Indirectbenefits have also resultedfrom the promotionby PMOs of rural enterprises. As stated above, PMOs, and not the AgriculturalBank, have been responsible for recovering project funds for the purchase and sale of farm inputs and equipment. In addition, due to changes in exchange rate between US$ and SDP, a portion of the IDA Credit was not used for project construction and remained available for other purpose at projee-t completion. The PMOs have used the recovered funds for providing short- and medium-term loans to brigades, teams and individualsfor various types of rural enterprises: agro-processing, paper mills, brick factories, buildingmaterials, sawmills, flex factory, fish production,livestock raising,etc. (see examples in Annex). A number of these small industries are using the facilitiesconstructedduring the CulturalRevolution for the making of steel or fertilizer, and which were closed in the following years. Rural enterprises were promoted by PMOs to meet increasingdemand for consumer goods and to generaterevenuesto meet part of their operating expenses. Some PMOs have also established service companies responsible for purchasing and distributing inputs and farm equipment to project farmers. The role of PMOs in recycling project funds and promoting rural development is highly appreciated by the Government, which has decided that PMOs will continue to operate in the project counties. Their tass; is  - 7 - expected to include operation and maintenance of project works, continue the soil and groundwater monitoring program Instituted under the project, monitor project benefits and prepare new investment programs.31 19. Studies carried out under the project have resulted in the identification of a follow-on project, the Shandong Agricultural DevelopmentProject, now under appraisal by the Bank. The project would use experiencegained under the North China Plain project in reclaiming land affected by salinity and waterlogging, introducing improvedcrop varieties and operating agro-processing facilities. III. FINDINGS AND ISSUES 20. Although the project was the first Bank-supported agricultural development project in China, It was an unquestionable success, due to both external and Internal factors. There is no doubt that the project has largely benefited from policy reforms,which have considerablyImprovedthe rural economy in the early eighties and boosted the entrepreneurial spirit of the farming population. The fact that the project partly consistedof rehabilitation works with considerable sunk costs, combined with the low investmentcost due to P1O's ability to mobilize a large amount of free or almost-freelabor, was an $mportant factor contributingto the project's high rate of return. In retrospect, however, three basic reasons for project success can be identified and are discussed below: simple project design; excellent cooperation between the Bank and the Borrower; and a sound project organization. Two other interesting issues are reviewed: the sustainability of project benefits and the replicability of the project strategy. Proiect Design 21. As designed 'y the provincialauthoritiesin 1980, the project not only includedan irrigationand drainage componenton 325,000 ha but also a variety of investmentsin sanimal production, sericulture, fisheries, forestry, agriculturalprocessing,etc. A Bank mission which visited China in November 1980 concluded,however, that the inclusionof a large number of small components would complicate the project and delay its processing. It was decided to concentrate project activities on irrigation and drainage and to reduce the project area to 200,000 ha, the most severelyaffected by salinity and waterlogging. As small pilot projects in the area had shown the efficiencyof existing irrigation and drainagetechniques,the project as appraisedwas a staple, but large-scaleland reclamationundertaking, to serve as a model for future Investments in the 6 million ha of the North China Plain adversely affected by similar salinity and waterlogging. 22. In the audit's view, the decision to keep the project simple, based on technology developed by local research institutesand already 3/ The Governmentcommented that since Credit closing additionalworks have been carried out in Shandong Province. In April 1988, total project costs, includingpromotion of small projects and rural enterprises have reached 100X of appraisal estimates (US$177.5million).  -8 - tested in the countrywas correct, as the project was the first in the sector and the ability of project authorities to implementprojectswas unknown. In addition, the project design was flexible enough to accoa=odateunforeseensituationsaa case in point was the change in the design of drains to meet project needs and local conditionsinstead of rigid adhesion to design standards. It is OED experiencethat multiple component projects have often failed because of their complexity and the need to coordinatea large number of executingagencies. The fact that the project became ultimately a more complex rural development project, includingrural workshops and small industries, does not contradictthe above statement. Such investments were t.e result of--and a natural progressionto--the benefits derived from land reclamation. Had they been included in the project description at appraisal,they would probablyhave complicatedand delayed project Implementation. Bank-BorrowerCooperation 23. As land reclamationtechnology had already been developed in the country, and institutional arrangements had been designed by the Government, some Bank managers and ExecutiveDirectors criticisedthe Bank approach for its limited technical and institutional input to the project. In fact, it is one of the audit findingsthat Bank operationalstaff have contributed substantially to project success and developed excellent relationswith project authorities. In the three provinces and counties visited by the audit mission the useful role of Bank staff and consultants was highlighted by local staff. Changes in drainage design, new techniques for drillingwells, design of a water table monitoringsystemu, preparation of an 0&L program, assistance in disbursement and procurement matters, preparation of a seed production and selection program were mentioned as an important input of the supervision missions. The Bank project cycle is also highly appreciated by the central, provincial and county authorities. Continuityof Bank staff during project implementation and good selection of consultants have been remarkable. Continuity of leadership in project management and exchangeof experiencesbetween the provinces during project implementation also contributedto the success of the project. The project has been used as a demonstration field for other regions, as illustrated by the Shangqiu subproject, which has been visited for learning purposes by more than 80 county delegations. As a result, considerable investment in drainage and irrigation has recently taken place in adjacent non-project areas. Proiect Organization 24. The project organization was quite representative of the government'sdecentralization policy. Each province had a major role in project identificationand preparation. The Bank legal documents included one Credit Agreement, with the central Government and three Project Agreements,with the three provinces, which were fully responsiblefor executingtheir part of the project.41 The proceeds of the Credit were 41 A fourth province, Jiangsu,was dropped from the initial project because it did not authorizethe central Governmentto negotiate the Bank Credit on its behalf.  - 9 - passed on to the provinces on the same terms as the IDA Credit. During the life of the project, the central governmentdelegatedthe bulk of planning and expenditureresponsibility to the provinces, which in turn delegated much of that responsibility to counties, townships and villages. As a result of these arrangements, the provinces considerthemselvesborrowers from the Bank and fully responsible for repayment of the IDA Credit. Delegationof political power from the province to the county also resulted in a high degree of responsibility and commitment on the part of the counties. 25. The decentralization of project management has had undoubtedlya positive impact on project implementation, ensuring the Borrower'ssupport at the central,provincialand county levels,which all regard the project activitiesfor their jurisdiction as 'their projects' and IDA Credit as 'their Credit". Satisfactoryrecovery of subloans and recyclingof funds in rural enterprises reflect the dynamic development spirit of project authorities. A framework has been established both for promotinga comprehensive rural development program and sustaining the project benefits. 26. While PMOs have acquired their financial autonomy and expanded their activities to all sorts of agricultural and industrialinvestments, there is a potential risk, however, that preparation appraisal and supervision of PMO-supported projects is not fully adequate, as PMOs are not adequately staffed and equipped to play a banking role in their respective jurisdictions. In adclition, PMOs' terms and condition of loans to enterpriseshave not been in line - and usually softer than - ABC's regulations and practices, resulting in additional financial risks. Finally, the question remains as to whether PMOs should continueplaying a financial intermediation role, or limit their activities to promoting rural investments, leaving the banking function to ABC. 27. The government has taken the decision that PMOs would continue their regional development function, including financial support of small projects, after project completion. The decision seems to be based on the fact that (a) ABC does not have much more experience than PMOs on commercialbanking, (b) PMOs are likely to be prudent investorsand lenders since they are risking their own funds rather than central government money, and (c) ABC is not able to respord to all financialneeds of rural areas and (d) competition in the financial sector is desirable. It is clear, however that if PMO's rural development role is to continueand expand in the future, they will have to be strengthened mostly in the financial field. Their on-lending terms and conditionswill also have to be not less than ABC's for similar activities. Prolect Sustainability 28. The sustainabilityof project benefits will largely depend on how the drainage system is operated and maintained in the coming years. Excellent plans for O&M have been designedwith Bank assistance. However, while the Chinese have a long experiencein irrigation, drainage techniques are still relativelynew in the country. The massive soil salinization of the sixties was mostly due to insufficient drainage or poor O&M of existing  - 10 - drainage systems. Adequate exploitation and rechargeof the water table by the combined use of surface and groundwater resources is sometimes difficult to achieve. In one of the visited subprojectsit was clear to the mission that the conjunctive use of surface and undergroundwater was not fully understoodby the PM0's staff. In all three provinces,there were indicationsthat maintenanceof the drainagenetwork might well be not as good as expected. The correct application of the existing O&M plans will largely depend on the length of tenure (or not) of the few well- trained PM0 staff. In addition, the long-termeffect of drainage on the water table is sometimesuncertain, and may depend on climatic and other external factors. Bank experience with drainage projects in a number of countries (Egypt, India, Bangladesh, Mexico and Colombia) has also demonstrated that adequate maintenance of drainage systems was a necessary ingredient for project sustainability, but sometimes difficult to achieve. It is the opinion of the audit mission that supervision of O&M by drainage specialistsis desirable for a few more years after credit closing. The most simple way of ensuring this continuing supervision would be to include in one of the new Bank-(or UNDP-or other donor) supported agricultural projects a small component providing consultants (and perhaps training) for continued assistance to the North China Plain project. 29. The introduction of the Production Responsibility System has placed new and increasing demands on the agricultural support services. Of critical importance for the sustainability of the project will be the ability of these services to meet the higher demand for agricultural inputs, and provide adequate technical assistance to thousands of individual farmers rather than a small number of teams and brigades. The rehabilitation of agricultural research (which suffered from the effects of the Cultural Revolution when many research institutions were closed and staff dispersed) is also essential. Although yields of the main crops have increased substantially, they have probably reached their ceilingwith the existingvarieties. Therefore,increasedproductionwill largely depend on the ability of the agricultural research to obtain and produce a new generation of high-yielding varieties. Proiect Replicability 30. A striking feature of the project development approach was the high degree of beneficiary participation, both in work and material. The extent to which such strategy Is replicable in future agricultural projects in China is an open question. At Board presentation, the possible replicability in other countries of this development approach was also raised by some Executive Directors. 31. As correctlynoted by the PCR, changes are taking place in the Chinese rural areas as part of the liberalization process, and it is not clear how they will affect the ability of counties and townships to mobilize thousands of workers for future investments. With increased incomes combined with increased workload in the field, 5/ farmers are likely to become more reluctant to provide free or low-paid labor, even in the off-season period. It must be noted, however, that (a) communal work 5/ The number of persons per household participating In agricultural work has increased from 2.11 In 1980 to 2.33 in 1983 and has continued to rise.  - 11 - for public investments has been part of the Chinese tradition for centuries; (b) the ProductionResponsibility System makes it mandatory for farmers to participate in construction and maintenance of publii; infrastructure; and (c) communal work appears vell accepted if the participants are involved in the decision-making. Therefore the replicability of the iabor-intensive development approach is likely during the coming years, yet with a higher cost than in the past and a progressive substitutionby mechanization. 32. One of the interesting outcomes of the project is its demonstrationeffect with rapid dissemination of experienceon adjacent areas. Although the nature and amount of work is not known by the audit, there is clear evidence that non-project countieshave now started using the drainage-cum-irrigationtechniquesdemonstratedby the project. 33. China's ability to mobilize large amounts of free or cheap labor is unique. It must be noted, however, that other countries hAave successfullyused a similar development approach,notably Korea, with its Saemaeul Undong (New Community) program, also largely based on decentralized decision-making and self-help from the villagers.6/Good results have been obtained in a few African countries,particularlyin Burkina Faso, with a series of Bank-supported rural developmentfund projects.7/ The Aga Mhan Rural Support Program in Pakistau, evaluated by OED in 198681 was another example of successful rural developmentbased on community work and decision-making. The Bank may have an important role in disseminating these positive experiencesamong its Borrowers. 6/ Rural Infrastructure Projects I and II, OED Reports 3925 and 6219, dated May 1982 and June 1986. 7/ OED Reports 2651 and 4541 dated September 1979 and June 1983. 81 OED Report No. 6562, dated December 1986.  - 12 - Annex (Translatedfrom Chinese) OF RURALENTERPRISES PROMOTION A. Typical Examples of Town and Township Enterprises Supported by ShangaiuPMO 1. Shuanaba Township Wood Processing Plant Nature: Town enterprise. Shangqui Project Management Office (PMO) granted two loans to this plant on August 11, 1986 and August 26, 1987, totaling Y 50,000. The loans were used to update processing equipment which improved both productivity and product quality. The paulownia boards exported to Japan are valued at Y 400,000 annually and are classified as inspection-exempt products by foreign firms for their excellent quality. In three years the plant generatedY 300,000 in foreign exchange. 2. Shuanrba Everydsa-UseChemical ProductsPlant Nature: Town enterprise. Shangqiu PMO issued to this plant two loans, on May 6, 1985 and August 26, 1987, totalingY 80,000. The loans were used to update equipment which helped increase the annual output from Y 1.1 million to Y 1.6 million and generate an annual profit of Y 270,000, It was cited an advanced unit by both the provincialand the prefectural governments. 3. Lems Township AluminumCookware Plant Natures Township enterprise. This plant obtainedY 70,000 from the project and raised Y 40,000 on its own. It now has an accumulation fund of Y 290,000 and a profit of Y 235,000. 4. Tianvina Villaae.Wanplou Township Nature: Individualoperators. This village use Y 40,000 of the project loan to develop itself into a village specialisingin cattle raising. Animal farming has prospered, opening ways to help farmers get rich.  - 13 - B. Typical Examples of Loans from Recovered Funds to Support Enterprisesin Ningling County 1. DontzuanVillags Fur and Leather Factory Nature: Village collective enterprise. Since 1984 the factory has receivedproject loans totaling Y 850,000 and used It to mechanize productionand develop new products and technologies. The plant operates four shops for leather making, fur making, cutting and sewing, and has 200 staff and workers and Y 1.5 million In fixed assets. Annual processing capacity is 300,000 skins and hides. For 1985-87the factory generatedY 21.15 million in output value and Y 2.23 million in profit and providedY 220,000 in tax revenue. A part of its products are being exported. 2. Ninaling County Flour Mill Natures State-owned. Used Y 600,000 of project loan. Production capacity: 100 tons of standard flour daily. Output for full-load productionis valued at Y 15 million, with an annual net profit of Y 1 million. 3. Gaomenlou Brick and Tile Factory Nature: Individually owned. In 1985 the factory obtainedY 30,000 of the project loan. It now produces6 million machine-madebricks annually, netting an annual profit of Y 60,000. It has repaid its loan in full.  - 15 - CHINA NORTH CHINA PROJECT PLAINAGRICULTURE (Credit 1261-A) REPORT COMPLETION PROJECT FAO/WorldBankCooperative Programme Investment Centre March 3, 1988 NATIONS OFTHEUNITED ORGANIZATION FOODAND AGRICJLTURE ROME  - 17 - CHINA NORTHCHINAPLAIN AGRICULTURE PROJECT (Cr.1281-CHA) PROJECT COMPLETION REPORT I. INTRODUCTION 1.1 The Chineseinvestment strategy over the past three decades has been influenced by two main objectives: industrialization and the eliminationof poverty. In the agricultural sector,the Government'slong- term objectives are to increase and diversify :he production of food, feea and industrialcrops,and to raiseemployment opportunities and incomes in the rural areas. China's official statistics indicate that the national economyhas grown very rapidly. This growthhas been spurred by tne major economic reforms initiated in the late 1970sand early 1980s,which among otherthings,introduced the "product'on responsibility system", liberalised domestic marketing and raisedthe levelof farm prices.The grossvalue of agriculturaloutputgrew 11% in 1982 and 9.5% in 1983.Averagegrain yields in 1983were 22% higheras compared to 1979 levels. Consequently, both rural incomesand consumption have risenmarkedly since 1979. 1.2 While considerable progress has been made over the past few years in increasingagricultural production, furtherincreases in production are constrainedby the extreme shortage of new cultivable land. Despite considerable progress in waterresource development (an estimatea 50% of the country's arableland is irrigated), largeareasof the North China Plain still suffer from waterlogging, salinity, and drought. The soils in this area are basically good and, where adequate irrigationand drainage have been provided, crop yieldsare high.Pilotprojects in the area, initiated by various Government agencies, had shownthat with suitable irrigation and drainage facilities,these lands oan be reclaimed and become highly productive for a wide rangeof crops. 1.3 The North ChinaPlainAgricultureProject, the subject of this completionreport,was the firstBank Group financed projectsupp'rtingthe agriculturalsectcrof the country.It was designed to provideover a five year period,improved drainage and irrigationfor about 200,000ha, covering partsof nine counties in three Provinces(Anhui, Henan and Shandong).The project was the first large-scale attackon soil salinityand waterloggig in China,and was expected to serveas a model for future developmentof similar types of lands in the NorthChina Plain.The projectalso provided for expandingthe rural electrification systems, improving rural roads,  - 18 - procuring agricultural and construction machinery and fertilizer, strengthening support services, and undertaking studies to help formulate future plans and projects in the North China Plain. 1.4 Initialdrafts of a Project CompletionReport (PCR)prepared by the office of the Project Coordinator, together with additi nal information provided by the Project Management Offices (PMO),forms the basis for this PCR.In addition, this report is based on a review of the Staff Appraisal Report (SARno. 3815-CHA);the Development Credit Agreementand tVe Project Agreements(dated 23 June 1982); World Banksupervision mission reports and project files; and field visits in October 1987 by an FAO/World Bank Cooperative Progranrne missionto the three Provinces where project works were reviewed and discussions held with Provincial and County staff. II. FORMULATION PROJECT Project Origin 2.1 Only a small portion of China's total land area is cultivated, and this leads to a highaverage density of population per hectare of arable land (estimated at 0.1 ha per caput). Consequently, bringing unused and under-utilised land into cultivation has been a4 major thrust of China's agricultural development effort over the past twenty five years. The potential for doing so is -ecognized in the North hinaPlain (NCP), where large areas to the north and south of the Yellow (Huang) River are affected in varying degrees by waterlogging and soil salinity. 2.2 Accordingly, numerous pilot projects were initiated by the Government of China in NCPin the mid-1960s and early 1970s, aimed at solving the problems of waterlogging and salinity. Although t-e pilot projects had been designed and operated by different agencies, the technique evolved for controlling salinity and waterlogging was basically the samein each area. This consisted of a system of open drainage combining the functions of surface and subsurface drainage, and a supply of water to leach salts from the soils and irrigate the crops. 2.3 Results obtained from the pilot projects had shownthat generally a depth of 2.5 m was necessary in the lateral drains to provide effective subsoil drainage; and that a spacing of 400-500 between laterals was generally adequate. Initially, the leaching proved to be a lengthy process in someprojects, becauseof delays in installing tubewells or bringing in surface water. The increases in yields per ha attributable to improved irrigation and drainage, were also found to be significant. These findings provided a valid case for developing a large scale project aimed at reclaiming essentially good agricultural land by tackling salinity and waterlogging.  - 19 - ProjectPreparation 2.4 The projectw&s prepared by the waterconservancy and agricultural staff in the counties,with help from relevant provincial and central Governmentagencies. Preparationof the projectbegan in August1980,and each countyprepared its own investment requirements. The initial proposal aimed at providing drainage and irrigation facilities for an area of about 325,000 ha in five counties; in addition, componentswere included for animal husbandry,forestry, fishery, agricultural machinery, sericulture, agricultural processing, biogas,rural electrification, etc. An IDA mission which visitedChina in November 1980 concluded that,whilethe counties had showna capacity to managea wide rangeof activities, the inclusion of such a variety of components would tend to complicate the projectand delay its * processing. 2.5 Furtherdiscussions within Government led to revisions to the * project proposal,with non-essential components beingeliminated and the numberof participating counties increased from five to nine. The total project areawas, however, reducedto around200,000ha (withabout280,000 farm families)as it was decidedto concentrate projectactivities on land where the need for salinity controland drainage was most urgent.An IDA pre-:ppraisalmissionreviewed the new proposal in May/June 1981,and found it sound. It was however, agreedwith Government that therewas a need for the countiesand centralGovernment ager.:iesto developa consistent set of designcriterafor on-farmdrainage systems. 2.6 Project Location.The proposed projectareawas locatedin three Provincesboth northand southof the Yellow(Huang) River,as follows (see Map): Shandong Province (countiesof Qihe, Lingxian,Yuchent); Henan 'rovince(Shangqui, Ningling,Minquan);and AnhuiProvince(Guoyang,Suixi, Mengcheng).The nine countieswere chosenprimarily becauseeach had a large pilotproject, where irrigationand drainagetechniques had been tested.The counties in Shandong and Henan had problems of waterlogging and salinity, whilethose in Anhuisuffered principaHlyfrom widespread waterloggingand drought, but no salinity.Also includedin the projectwere areas in danger of becomingsaline,on accountof inadequate drainage. ProjectAppraisal 2.7 An IDA missionvisited China in October 1981 to appraise the project. It endorsed the revised proposals with someminor changes;the latterwere principallydue to the considerableprogress made locally in developing uniform designstandards for projectworks.Whiletherewere no issuesto be resolved,the projecthad one specialfeature: of the proposed US$60 million IDA credit, only about US$20 millionwould be disbursed againstgoodsprocured throughICB.This was on account of the fact that civil works would be carried.I out on force account,which was considered efficientand low cost;and that material for electrification, as well as the pumps, motorsand farm mac.iinery wouldbe conveniently availableunder localprocurement.  - 20 - ProjectDescription 2.8 The principal components of the project,as appraised, were: Irrigationand Drainage:a) excavation of some 70 km of river channels and 1,260km of existingmain and branchdrains;b) construction of 3,200km of lateral drainsand 8,200km of sublaterals; c) constructionof new pumping stations for drainageand irrigation;d) constructionof about 8,450 tubewells,and procurementof pumps and motorsfor thesewells and for about4,010existing wells;e) variousworks to improve water controlat the field level consistingof land smoothing on about 60,000 ha, and constructingfield ditchesand drains. Rural Electrification and Roads:a) additions of 700 km of 10 KV lines,1,470km of 380 V lines,and related substationsand provision of transformers; b) constructionand improvementof 130 km of rural roads. AgriculturalDevelopment: a) procurement of agricultural machinery and construction equipment; b) procurementof phosphate fertilizer and pesticides;c) tree planting; d) a programme to strengthen researchand extension'services in the projectareas. Studies:a) a comprehensive programme of soil and water studies in each projectarea, supportedby technicalassistance; and b) an agricultural studyof selectedareas in the NCP to help formulate future agricultural developmentplansand identify and preparefutureprojects. Over a five year implementation period,the projectwas estimated to cost Y302.0million(US$177.5 million) againstwhich an IDA credit of SDR54.0 million (US$60.0 million) was negotiated.It was to be implementedthrough technical bureauxand agencies of the county governments;in addition, Project Management Offices (PMO)at central, provincial and countylevels were to coordinateand manageoverallprojectimplementation. III. PROJECTIMPLEMENTATION Negotiations and CreditEffectiveness 3.1 The negotiations betweenIDA and the Governmentof Chinatook place during 19-20April 1982.The Bank'sBoardof Directors approved the credit on 15 June 1982.The creditwas signedon 23 June 1982 and becameeffective on 7 October1982.  . - 21 - of ProjectComponents Implementation 3.5 and Drainage Works. The strategy adopted under the Irrigation project to control salinity,waterloggingand drought emphasised a comprehensivebasin-wideamelioration and reclama-ionapproach, including horizontaland vertical drainage (through tube4ells),dual purposecanal networks(fordrainage and irrigation)and water management, especially groundwatertab'e control. Projectemphasis was on deepeningand widening the existingnetworksof main and branchdrains,and on supplementing these with adequatesystemsof laterals, sub-lateralsand fielddrains (Table3). 3.6 Under the projectsome 1,600km (SARtargetwas 1,330km) of river channels end existing mains and branchdrainswere enlarged; 2,300 km (3,200 km) of lateral drains and 5,500 km (8,200 km) of sub-laterals were constructed. Most of the main and branchdrainsin Anhui and Shandona are also used for conveyance and storageof waterfor low-lift irrigation and groundwater recharge. A totalof 17,766(13,738) bridgesand culverts were constructed.The total number of tubewells sunk or repaired was 10,648 (11,282). About 10,834(12,460) pumps and about 11,891(12,460) motors and engines were procured for new and existing wells;in addition, -21 sets of sprinkler equipment were installed in Anhui. A larce number (mission estimates around5,000)of additional sets of portablesubmersible pump sets were financed and procured by inaividual fari;householdsfor use in project wells in addition to sets provided underthe project. 1/ Land smoothing and landgrading(in sand-dune areas)were accomplishedon nearly 72,000 ha (60,000 ha). V~- 3.7 The total volume of earthworksexcavated amounted to about94 millionm3 as againstan SAR targetof about 102 millionm3, mainlydue to a much reduced number of laterals and sub-laterals as a resultof changed designcriteria(para3.2).This becomesmore apparent when comparing canal lengths,as shownbelowfor two provinces.2/ Anhui Henan SAR Actual % SAR Actual % Mains& Brancneskm 340 389 114 340 351 103 Laterals km 720 733 102 810 454 56 Sub-Laterals km 4,000 2,295 57 1,800 825 46 Total 5,060 3,417 68 2,950 1,630 55 1/ Uniquely,in certainprojectareaswater is drawnfrom a commonwell, or in parallel. usingmore than one pump set - sequentially I/I * " II - .s - as1' * ne , h e e 14 t sr t -c f n- , 4n * I  -22- ProjectChangesAfterAppraisal 3.2 The project has been imp emented within the basic framework designedat appraisal. However, the project implementingagencies carried out a mid-term adjustment in 1984-85, underwhich changeswere made to the physicaltargetsset at appraisal (Table2). The changesfall broadly under two categories. Firstly, revisions based on availabilityof better information,were made in the designadoptedfor irrigation and the drainage system. To minimizelossof scarcearableland,ensureeffective drainage, and allowfor the use of drainage channels for irrigation conveyance (Anhui and Shandong), revised designcriteria were adopted, with changesmade in spacing,length,depthand bed width (Table3). Consequently main and branch canals were deepened, resulting in largervolumesof excavation which was compensatedby reductions in the volumeof excavationfor laterals, sub- laterals and field drains. This is particularly significant in Shandong province.The relaxation on lateraland sub-lateral designcriteriais also reported to be a reflection of recognizing that water tablelevelswouldbe loweredby tubewells, which had not been considered in earlierdesigns. 3.3 Secondly changeswere made to the targetsto take account of the effect of the changing socio-economic environmentbroughtabout by the policyreformsinitiated since 1979.With the introductionof the household based production responsibility system, therewas higherdemandfor: (1) smallertubewellpumpingunits;1/ ii) smallersizedagricultural machinery; and iii) increased rural electrification. The project designwas also amendedto allow the procurementof agro-processing equipment.The SAR target for paved roads was reducedfrom 100 km to 10 km, while that for unpavedfarm roadswas increased from 30 km to 128 km (this was partially due to the easy availabilityof nodularcalcrete found in some drainage canalexcavations, which proved to have good road surfacing quality). Finally, no technical assistance was considered necessaryfor implementing the studiescomponent of the project. Schedule Implementation 3.4 Implementationof the projectwas largelyaccomplishedwithin the time frame envisaged at appraisal (project completion 30 June 1987).As anticipatedat appraisal,earthworkswere carriedout betweenthe completion of autumn harvest and planting (October/November) and the wheat harvest (April/May). Chart 1 gives the comparison between SAR and actual implementationschedule. 1/ Small and handyunits of submersible turbinepumpswere locally available, which had the add-d cdvantage over the originallyplarned centrifigual pump units,of a g-eaterrange of pumpinghead.Alsc a low cost, smalldiameter plasticcasingwas introduced, in lieuof the customary concrete pipingfor tubewells.Anotherinnovation was the use of shallowgroundwater throughuncasedaugerholes in Anhui.  7 - 23 - ProJectworkswere normally designed by the provincial and countybureauxin consultationwith the PMO and upon specifications and designcriteriaissued by the Ministry of Water Resources and Electric Power (MWREP).Nearlyall excavationwas by hand using laoormobilized from amongthe benefittingfarm communitiesduring the off season. 1/ The qualityof the works has been excellent,although initially some bank slippageand soil erosion occurred. This was later largely controlled through vegetativemeasures. Spoil materialhas been used judiciously to buildup embankmentsfor farm roads and plantationof shelterbelts. 3.8 Most of the project's bridges were of arch-typedesignwith a brick or stonemasonrysuperstructure on a concrete arch.The designs were cost . effective and durable; howeverin low-lying areasthe archesoften tend to encroachexcessively on the cross sectional area of the drainage canals, causing partial obstruction to flow. The projectalso retained many old bridgesin widenedand deepened canalswith a similarconstricting effecton flows. 3.9 Rural Electrification and Rural Roads.In response to increased demand for rural electrification, the targets and achievements for transmissionlines and transformerswere significantly higherthan those proposedat appraisal.A totalof 1,767km of high voltagelines and 3,554 km of low voltage lineswere implemented underthe project.Additionally about 1,300 distributionstations were built. Rural roads were only constructedin the Anhui projectarea.The revisedtargets(seepara 3.3) were fullymet (fordetailssee Table 2). In addition,some 1,200km of farm roads were constructed in Henan from the spoilof canalexcavations by concernedvillagegroupswithoutcosts to the project. ! 3.10 Agricultural Machineryand Construction Equipment. A total of 92 four-wheeledtractors(25 hp) were actually procured, againstthe appraisal estimateof 50; and 4,229 two-wheeledtractors (12 hp) as against the appraisalestimate of 720. These increaseswere due to the higherdemandfor the mediumand small sizedtractors which occurred after the reforms. A total of 51 unitsof construction equipment,mainly hydraulicbackhoesand bulldozers,were procured (the SAR had proposed 19 units, only for Shandong). 3.11 Fertilizersand Agrochemicals. The total amount of diammonium phosphate(DAP)prociredunderthe project was nearly 79,000 tons (SAR proposalwas 47,000tons).Due to the declinein DAP prices,it was possible to procurea higheramountof fertilizer largelywithinthe original credit allocation.The fertilizer was sold to farmersin the projectarea largely throughthe servicecompaniesof countyPMOs,under the supervisionof the township governments.In addition, a totalof 193 tons of insecticide was procured. 1/ An exceptionwas the use of excavators procured under the projecton a trial basis,which showedthat machinery can be highlycompetitive where excavationwork by hand is particularlydifficult.  - 24 - 3.12 Tree Planting, At appraisal,an estimated 22,000 ha of forests/orchards were expectedto be established;in addition,about14.25 million treeswereto be intercroppedor planted alongside field borders, drainsetc.. The actual achievements of the treeplanting in the total project area,as providedby thecounty PMOs,are shownin Table 4. As a detailed breakdownof individual planting categoriesis not alwaysavailable it is notpossible to makea directcomparisonwithSAR targets. 3.13 Researchand Extension.Table5 setsout facilities and equipment actuallyprovidedundertheproject for researchand extension servicesin eachproject Since cournty. datain terms of physicalachievements provided by county PMOs are incompleteand the aopraisalreportalsodoesnot give detailedphysicaltargets,the two cannot be compared. With regard to researchworks conducted, data provided by eachcouttyPMO indicate that mostof the research worksconducted weremorerelated to soil and water studiesthanto cropproduction. 3.14 Local trainingof extension staff as well as of farmers has reportedlybeenconducted extensively on various topics including crop production, forestry, animal husbandry, irrigation/drainage, farm management,etc.Dataon how manycourseswere conducted and the actual number of people trainedare not available to the miss4on. However, availabledataindicatethatAnhui provincecarried out the most training (about9,300man-months), followedby Shandong(about4,600man-months)and Henan(about 2,800man-months). 3.15 Studies. The programme of soilandwaterstudieswas designedby the CentralPMO in cooperation with the University of Agricultural Engineering,the Instituteof Water Conservancy and Hydroelectric Power Research(IWC), and t1.eInstituteof Hydrogeology,Shijiazhunag,Hebei.The CentralPMO alsosponsored specificstafftrairing courses,which were to ensure a common approachin sampling, testing and evaluation.Provincial PMOswereprovided withcomputerfacilitiesto store and processfielddata. The SAR providedfor assistance in the study programme fromforeign consultancyservices. However, no suchservices wereactually sought.1/ 3.16 Overallthe soilstudies are aimed at soil fertility and soil salinity/alkalinity monitoring, while the water studies are focussedon movements groundwater and chemical composition.Some statistical data on soil and water samplingand analysisare summarized in Table 9 and preliminaryconclusions are drawn in Chapter V. Specializedstudies concerningsuch topics as cropwater groundwater requirements, recharge, wellpumpingtests,riverbed morphology, water and soil research, and fertilizer experimentswerealsocarried out.The bilateraldrainage testing programme was carriedout at one fieldstationin each of three Provinces and totalledabout 250 ha of drainagearea. Mechanized placement of plastic corrugated piping in lieuof openfield drainswas demonstrated and 1/ A Dutchconsultingfirmwas assigned undera bilateralfinancing arrangement, for the specialized taskof tryingout alternative methods of drainconstruction.  25 - its performancemonitored.The preliminaryconclusion is that the technique is stillnot competitivewith conventionalopen drains:the saving of land lost to open drainsdoes not compensate for the higher initialas well as maintenancecosts (flushingoperations)of coveredmachine-installed drains. 3.17 Resultsof the various soil and water studies have oeen made available in various notes, reports and maps.A comprehensive reportas stipulatedin the SAR, is currentlyunderpreparation by the CentralPMO in cooperationwith the IWC and is expected to be available (in English translation)in spring1988.The fieldsampling for soil fertility, soil salinity/alkalinity and groundwatertable monitoring is scheduled to continueas a long-term programme for which, however, the densities of observationpoints have yet to be determined. Overall, the soil and water studieshave been carriedout largelyin linewith proposals formulated at appraisal,and have provedto be of high practicalrelevance. 3.18 In addition to the soil and water studies, the projectincluded a provisionfor undertakingan agricultural study in selectedareasof the NCP with the objective of preparing future projects. The SAR proposedthat initiallythe studyshouldconcentrate on landsbordering the Tuhai River in ShandongProvince.Accordingly, the Tuhai RiverBas-rStudywas initiated in 1982/83and completedby 1986/87. It has led to the preparationof a comprehensive agricultural developmentproject, covering 12 counties in ShaidongProvince.The Government has soughtBank assistance to finalizeits preparationwith a view to seekingWorldBank financial supportfor its implementation. 3.19 Procurement.Only fertilizers and agro-chemicals(representing 16% of actual project cost) and some constructionequipment were procured throughICB;all other itemswere locally procured. Civil works (60% of totalprojectcost)were carriedout by force account, alongwith significant contributions(labourand in some instances towardsmaterial costs)from the benefittingcommunities. Township governments were able to mobiliselarge amountsof labourand complete the proposed worksefficientlyand on time (see also para 4.2). While labour was costed at Yuan 2/workday, a significantpercentageof it was contributedby the rural communities withoutcash compensation(seeparas3.24-3.25). However, changesare taking placein the rural areasas part of the liberalizationprocess, and it is not clear at this stage how they will affectthe abilityof township governmentsto mobilizelabourin the future. ProjectCost 3.20 Table 6 provides a comparative statementof appraisal cost estimates and actual costs.Basedon cost data provided by the individual countyPMOs,actualcostsare estimated at around Y385 million (US$136.6 million),which include plannedexpenditures beforeclosureof the creditof aroundY17 million(in Shandong province only, for fertilizer,vehicles, constructionand other equipment). The actualcostsrepresent an overrun,in Yuan terms,of 27%, over the appraisal cost estimate of Y302 million. In dollar terms, however, there was a savingof 23% over the SAR totalcost estimateof US$177.5 million, reflecting the depreciation of the Yuan vis-a-  - 26 - vis the US dollar(seeBasicData Sheet). 3.21 In comparing these costs, however, it needsto be borne in mind that a significant proportion of the project costs come in the fc m of uncompensated labourcontribution from farm families (seepara 3.24).Since suchcontributionshave been recorded at variouslocations and by various agencies, discussionswith local agencies revealthat theremay be some inconsistencies in theirtreatment while accounting for them 4n project costs. In Anhui for example, arcindY11.9 millionof costs(beingmainly labourcontributions) havenotyet beenallocated to component categories. In addition, on-farm costs (included in SAR estimates) for irrigation ditches,fielddrainsand ditchlining are not all included in actualcosts, as thesehavebeencarried out by individualfarmfamilies. 3.22 In comparing SAR and actual costs,if on-farmcostsfor irrigation ditchesand drains are excluded fromthe appraisalestimates(aroundY15.O million), the costoverrun in Yuantermsis about 34%.This is principally on accountof the upward revision to physicaltargetsmadeduring the mid- term adjustments. The costs for the institutional components(extension, research,training, studies and projectmanagement)however,are lower than appraisal estimates principally on account of not using any external technicalassistanc- for thesecomponents; in addition, servicecompanies set up by PMOs(seepara4.5)generated revenueswhichoffset someof the costsincurred. Project Financing and Credit Allocation 3.23 Financing. The IDA credit (SDR54 million) was expectedto finance 34% of totalproject cost. As project closing is scheduled for end-December 1987, disbursements havenot yet closed. Annual disbursements havegenerally kept up with the scheduleexpected at timeof appraisal (seeBasic Data Sheet). A slight slowdown in activities during the past two years has resultedin a one yearoverrun. As of 9 November 1987, SDR50.1million (93% of the totalcredit) had beendisbursed. It is expected thatthe credit will be fully disbursed (inUS$ terms, about $58.5 million), and on the present estimates of actual project costs, will cover approximately 43% of the latter, (the higher percentage of financing is due to the depreciationof the Yuanvis-a-vis the US dollar, and the highpercentage of local costs in total costs). 1/ 3.24 Farm familieshave contributed significantly towardsmeetingthe costsof the project,principally in the form of labour contributions towards earthworks, and construction of structures. While there are differences betweenProvinces, labour costs have generallybeen met as follows: 1/ In Anhui, WorldFoodProgramme has provided assistancein the formof food-for-work (USS8.62 million),in support of the project's activities.  - 27 - CashPayment FarmContributions Cost).......... (%of Labour ......... River andMainDrains Deepening a/ 25 75 Branch, & Sub-Laterals Lateral 0 100 On-Farm LandLevelling, Costs 0 100 Large Bridges Structures. a/ 70 30 Small WellDrilling Structures, 0 100 labour a/ In Shandong, costsfor maindrainsand large was fully structures met through'abourcontribution. 3.25 Farmershiavealsocontributed towardsmeetingthe costof materials and bridges. for structures The extentof theircontributionvaries between Provinces.Forexample, in Shandong,theyhavemet approximately30% of the materialcostof maindrainbridges,60% for branch drain bridges,and around 75% of the material structures. costsfor lateral/sub-lateral For the rural implementing roads components and electrification too,labour has been contributed, without cashpayments. the material Generally, costs for component the electrification are being paid by the local communities (eitheras repayment of loans taken,or fromcashcollected throughvillage committees). 3.26 Credit Allocation.Table 7 shows d comparison of the planned allocations, revisionsandactual as of 9 November disbursements 1987.The principal re-allocations effectedwerea reduction in amountsoriginally allocated for the pumps and motors,and the studies and consultants' categories, withan increase equipment in the "other and goods"category. A featureintroduced by IDA,at the requestof the borrower,was the setting up of a revolving fund of SDR500,000 to facilitate quick disbursements againstexpenditures for equipment andto finance training,consultants' feesand studies. As at present (November 1987), the amount undisbursed (SDR3.9million)relates to the "agricultural chemicals", and the "other equipment and goods" categories. ANDDEVELOPMENT PERFORMANCE IV. INSTITUTIONAL Agencies ImPlementing 4.1 Project havegenerally responsibilities implementation followedthe approachenvisagedat appraisal.However,with the rural reforms,the andmanagerial administrative of the commune functions and brigadeunderthe old system were taketiover by the townshipand villagegovernments respectively.ProjectManagement Officeswere established at provincial level,eachsuppurtedby a ProjectTechnical Com:ittee(on which all concerned provinciallevel departments/bureaux Under were represented). them,PMOswereestablished and county levels; in addition, at prefecture  - 28 - project management groups(withsimilarfunctions as a PMO, and Peferred to as such in Shandong Province)were establishedby the county PMOs at township level.CountyPMOs were supported by ProjectCommittees made up of the headsof the relevant administrativeand technicalunits of the local government.Overall, the Ministry of Agriculture,AnimalHusbandry and Fisheries (MAAF) was responsiblefor projectimplementation in cooperation with the Ministry of WaterResources and ElectricPower(MWREP). For this purpose, a CentralPMO was establishedwithin MAAF, which received good support from MWREP. 4.2 Project works have been executed largely underthe supervision of the respectivetownship Governments.Initial planning and designing of project works was done by countybureauxin collaboration with the county PMOs (WaterConservancy Bureaufor drainage and irrigationworks, bridges and structures;Transportation Bureau for roads;Electricity; and Power Bureaufor the electrification; and the Forestry Bureau for the trees component);often, the initial designwork was done in consultation with village/farmercommittees. These plans/designswere reviewed and cleared at both the prefectureand provincial levels, by the respective technical agenciesand the PMOs. Labourfor carthworks and roads,as well as tubewell drilling crews were mobilized and supervised by the township Government, through the administrative villages; constructionteams of the Water ConservancyBureauor farmergroupswere contracted by the PMO to construct the bridgesand structures. The ruralelectrification component was executed by the Electricity and PowerBureau;the lowervoltagelinesat the village levelwere constructed throughthe electricity management groups at township level. The procurementand subsequent saleof fertilizer and agricultural macninerywes carriedout by the PMOs. 4.3 Management and Flow of Funds.At appraisal it was envisaged that tne AgriculturalBank of China (ABC)would channelprojec.funds from the centralGovernment to provincial and countyGovernment agencies for works undertaken by them,and for expenses of the PMOs.ABC was also expected to disburse the remaining project funds to farmers and, collectives for constructingtubewells,and purchasing tubewell equipment, agricultural machinery, fertilizers, and seedlings. These fundswere to be recovered in accordancewith termsdetermined by PMOs (at appraisal, it was assumedthat thesewould be similarto ABC's prevailing terms). In actual fact, funds were allocated on a provincial basisby the centralPMO,with provincial PMOs allocating fundsamong theirrespective counties. The controlover, and the responsibility for disbursing fundshas beenthat of the countyPMOs; ABC has acted largely as a channelling agentfor which it was paid a service fee of 0.3% of fundsdisbursed. The responsibility for recovering funds lent has also,otherthan in Suixiand Guoyangcounties(in AnhuiProvince), been that of the countyPMOs. In most instances, the countyPMOs have appointed agentsat the townshiplevelto recover such loans. The management and furtheruse of recovered funds has been the responsibility of the countyPMO (see paras 4.9 to 4.12 below).  - 29 - and Coordination Management Project 4.4 The ProjectManagement Offices setup at the variouslevels (see Chart2) haveplayed an important rolein ensuring successfulimplementation of the project.The SAR did not envisage up of prefecture the setting PMOs; however, thesewereestablished as the prefectureis partof the provincial Government structure,and intervention at thatlevel is sometimes essential to dealwithmatters such as labour supply coordination,supplyof materials (suchas steel, cement, timber), and forriverbasin development planning. 4.5 For actualprojectexecution, the county PMO played the most crucialrole. It was responsiblefor decisionson how a componentwouldbe implemented,ensuring liaising its implementation, withtechnical agencies, signingcontracts with agenciesresponsible for carrying out theworks (townshipgovernment, teams, construction drillingcrews, Electricity and Power Bureau,specialized etc.), households, certificationof satisfactory completionof differentworks,and making paymentsas agreed under the contracts. 4.6 The organizational structures of the county PMOs are broadly similar;underthe head of the PMO, there are sectionsdealing with planning administration, and finance, agricultural engineering, researchand extension,andmonitoringand evaluation.In addition,most of the county PMOs have established servicecompanies which are responsiblefor the purchaseand supply of materials, and the procurement and sale of agriculturalmachinery. In Anhui established the companies havealsotaken role,procuring on a marketing foodgrain,cottonand oilseedsfrom farmers, and then selling it at a profit rangingbetweenYO.2to YO.4per kg. The companieslevycharges for the servicesperformed, which vary between provinces(generally, around 9% of cost). 4.7 The PMOs were originally established as temporary organizat-lons, and the technicalstaff wereappointed accordin'ly. However, efter two years a decision was takenby Governmentto makethempermanent government bodies. Generally, mostof the technicalstaff of the PMOsare experienced, having been drawn from Governmelt bureauxand departments (water conservancy, agriculture, forestry,finance,as well as from ABC and administrative officesof county Governments).During the course of the project, sraffhave attended numeroustrainingcowrses organized by prefecture, provincial and centralPMOs in fields such as engineering, agricultural technology and extension, forestry,agro-processing, credit,monitoring and evaluation, etc.; in addition, staffhaveparticipated in study tours abroad organized underthe project. 4.8 Monitoringand Evaluation(M&E). As proposedat appraisal, M&E units were set up within the provincialand county PMOs.Training seminars wereconductedby among others, theWorldBankandthe ChineseAcademy of Agricultura,Sciences. The principalthrust of the workof theseunits was on monitoring project implementation progress, and collecting crop productionand general income and consumption statistics.For the latter purpose,countyPMOsbegan monitoringin 1983, a sampleof project and non- project area households. A considerableamount of datahas beencollected. Whileperiodicreportswereprepared for discussion.on a provincial basis  - 30- (jointly, by the PMOs), no formal reporthas so far been prepared. The mission was informedthat such periodic reportsand discussionsare used to discuss lessons and problems; however, no reportsof an evaluationnature were available.It is proposed that a finalreport(due for completion in March 1988) will reviewoverallimplementation, and evaluatethe impactof the project. Promotion of Rural Enterprises 4.9 It was expectedthat fundsgenerated from the sale of fertilizer and agriculturalmachinery would be recovered by ABC; accordingly, no proposals were includedin the 3AR for their further use. However, during project implementation and after discussions with IDA,PMOs have assumed responsibility for disbursement, recovery and the subsequentuse of recovered funds. To assist in this process, directiveswere issuedby MAAF and ABC, in consultationwith the Ministry of Finance, which define the manner in which the funds recovered can be used by the countyPMOs. Essentially, the latter have a significantmeasure of independencein deciding both the interest rates to be chargedand the activities to be financed. 4.10 The countyPMOs have utilised the recoveredfundsto promote rural economic activities,by providing short and mediumterm loansto various typesof ruralenterprises set up in the project areas. The enterprises supported are extremely varied and includeagro-processing (flourmills, fruitprocessing, cotton ginnery, breweries,oilseed processing,etc.), factories (expansionof fertilizer and chemical factories, flex factory, papermill, etc.), cold storages, enterprisesto provide construction materials (for e.g. cement and brick factories, prefabricated building materials, sawmills, etc.),acuaculture,seed multiplication, short term crop loans, loans to villages to expandrural electrification, etc..Some PMOs have also loanedmoney to theirservicecompanies to finance marketing and supply services. The PMO has the primaryresponsibility for appraising loan requests. However, in doing so, it takes assistance from related technical bureaux, as well as from the FinancialBureauand ABC. While data on loansoutstanding at presentwhere not available to the mission, Table 8 shows total cumulative lendingof such funds,by each of the countyPMOs. Excluding loansmade for marketing and supply services (Y16.6 million), cumulative lending by the nine county PMOs, up to the middleof 1917, amountedto about Y61.5 million (US$16.6 million at present rates of exchange). 4.11 The interest rates chargedby the PMOs vary betweencounties, as shown in the table below. In all cases,they are lowerthan interest rates presently chargedby ABC.  - 31 - Item Anhui Henan Shandonq ABC ~~~... per monh Irrigation Equipment 0.24-0.60 0.18 0.18 0.66 Agr. Machinery 0.48 0.36 0.36 0.66 Electricity 0.51 0.36 0.36 0.72 ForestNurseries 0.24 0.18 0.48 0.66 Crop Loans 0.48-0.66 0.66 0.48 0.66-0.84 Agro-Processing, VillageIndustry, etc. 0.48-0.84 0.66-0.87 0.48-0.60 0.72-0.96 The loan repayment periodsalso vary,but in all cases (otherthan annual crop loans)they range from 3 to 10 years. 4.12 The manner in which loansare recovered varies.In some instances, only interest is paid by the borrower annually, while the principalis repaidin eitherone final,or may be two instalments; in other cases, both interestand part of the principal are paid back each year. Whiledetailsof repaymentsare not available, both in Anhui and Henanthe PMOs reportedvery few instances of delayed payments. In Shandong, however, paymentswere reportedto be between70-80%of amounts fallingdue. It appearsthat since ABC interestrates are generally higher, some borrowers preferto settlethe ABC accountsbefore the PMO loans.However, in all instances,PMOs have institutedmeasures such as appointing loan recovery agentsat township level,to recoverdues and overdues(whichin many cases may only be the interestelement); in addition, PMOs in ShandongProvince are levyinga ffne (dailyfines,plus penal interest rates)on overdues. SupRortServices Agricultural 4.13 Research and Extension. The appraisalreport did not give much emphasis to institutional aspectsof researchand extensionservices under the project.Presumably It expected that the pre-project institutional arrangementswould continue, but recognizedthe need fo- improvement of facilitiesand provision of additionalequipment. In the early stage of projectimplementation, however,integrationof the existingcountyresearch institutesand other supportservicesinto County Agro-technical Extension Centres (CATECs) took place everywhere in the countryin order to foster greatercoordination among varioussupportservices. Consequently, most of the projectcountiesnow have a ATEC which combinesthe formerly separated supportservicessuch as extensio,.,research, seed production,fertilizer distribution,animalhusbandry, etc..The new arrangementshave not yet been fullyestablished in the projectcountiesand vary considerablyamong the threeprojectProvinces. 4.14 Within the respective county project area, the consolidated research/extension works have been carried out by the county PMO technicians.For the regularcountyprogramme, they have been directedby CATECbut for the projectrelatedworks such as soil/water study, training, seed production,etc., by the technical sections of PKO. The projectrelated fieldworks were in most cases carried out by part-time technicians 1/ 1/ Localfarmerswith qualified educational Specialtraining background. was normallygiven to these farmers.  - 32 - by the county PMO,under the guidance employed of PMO technicalstaff. The general set-up of the research/extensionservices in the project area includes a group of 3-4 technicians in each townsnip,and 1-3 farmer techniciansin each administrativevillage. In each natural village there is getnerallyone demonstrationhousehold. 4.15 Fertilizers and Agrochemicals. It was expected that the chemical fertilizer(DAP) and agrochemicals (pesticides)procuredunder the project would be distributed thvroughsupply and marketingcooperatives. However, actual distr;butionof these farm inputs was mostly handled by service companies of the county PM0. To maximise benefitsfrom the applicationof phosphaticfertilizer, the first IDA supervisionmission pointed out to the Chinese authoritiesthat the DAP should be applied after the salts had been leachedfrom the soils. However, it appears from discussionswith PMO staff that much of the fertilizer has been applied before leachingthe salts completely from the salinityaffectedsoils, following the completion of drainage and irrigation works. This might suggest an apparent lack of knowledgeor prior experiencelocally (particularly at the lower levels) on the relationship between reducing toxicity (salinity/alkalinity) and increasing fertility (reducingphophate deficiency). 2/ Operationand Maintenance(O&M) 4.16 There is a high degree of awareness among authorities ind beneficiaries of the crucial role of O&M. The core of O&M work is carried out by householdgroups through a contract system,with the O&M committeeat townshfp level as the contractingauthority.Villages and householdgroups have also assignedcertain O0M tasks to individual group members through contractual arrangements. A typical contract farmer could take routine maintenanceresponsibility for say 2,500 m of lateral drain 1/ and road, 1,600 trees planted under the project and one major bridge over a branch drain. In return he would be entitledto retain the major part of the profit realizedfrom the trees. 4.17 The O&M activities aescribed above (illustrated-.4n Chart 3) are appliedonly to general rural -infrastructure.All major water. Oontrol structures are operated and maintaineddirectlyby the MWREP through its local bur3aux.Similarly all roads above village anQ farm level, and above 10 KV are maintaineddirectly by the electricity supply installations concernedlocal bureaux. 4.18 The bulk of O&M costs are operating and replacemen, costs for pumped irrigation (Table 26). These costs, together with routine maintenance,are borne entirelyby the immediatebeneficiaries; little cash expenditure is requiredfor the other O&M activities.Financingarrangements for O0M appear to be adequate. However,the project has raised the level of 1/ Does nct includedesiitingwhich is done in intervalsof 3 to 5 years through mobilizationof voluntary labour. 2/ The Borrowerpoints out that phosphatic fertilizerswere mainly applied in landswith no or light salt and not before leachingin heavy saline soil.  - 33 - management sophistication required, especially in relation to water managementof the dual purposecanalnetworks for irrigationand drainage. During critical periods thesewouldrequireswift and impartial actionin orderto maintain optimumwater levels and to counterbalance conflicting interests.It was, however, observed that projectstaffwouldbenefitfrom more specificstafftraining in this respect. Accounting and Reporting 4.19 Projectaccounts have been principallymaintained by the county level PMOs. There appear to have been difficulties in ensuringthat farm familylabourcontributions, particularlytowardsearthworks,became fully recorded (see para 3.20).This is partially on accountof the fact that it was i new requirementfor the local authorities to value labour contributions and include it in costs, and also because very large quantities of labourhave been utilised over dispersed areaswhich are under the control of different agencies. Overallaccounts have been euditedby the Government auditdepartmentsat county, provincial and central levels. Progress reports were prepared on a quarterly basisby countyPMOs and submitted to the provincial and centralPMOs. In the case of some of the minorcomponents such as tree planting,and research and extension,progress of physical implementation has not alwaysbeen consistentlyrecorded (see paras 3.12 - 3.14). Compliance with Covenants 4.20 The borrowerhas generally compliedwith the covenants soecified in the DevelopmentCreditAgreement. OverallAssessment of Performance 4.21 At appraisal, the role of PMOs (particularly at county level) was consideredto be that of coordinating the activities of different agencies in executing the project, preparing annualbudgets, maintainingrecords of project progress and accounts, and monitoring the operation and maintenance of irrigation and drainage systemsbuiltunderthe project. While they may still requiresome additional training, particularly in projectaccounting, they have on the whole successfully fulfilled their responsibilities. The staff are motivated, and generalmanagement at countylevelappearsto be good;duringthe project, several staff have received training, thereby upgrading their technical capabilities. Overall, the implementing agencies have performed well, as evidenced by both the timelycompletion of project works,as well as the generally satisfactory standards achieved in the works carriedout. A weakness has been that not enough emphasis was given to ensuring that farmers constructed on-farmdrainsto the extentenvisaged at the time of appraisal. In assessing the performanceof PMOs, it must be recognized that they came into being duringa periodof rura' reforms; the systemof projectmanagement adjusted smoothly to the changes whi:h were  - 34 - taking place. Includingthe recycling of recovered funds,the PMOs have ensured of a multi-component the implementation "rural developmenttype" project. They have, in effect, operated as quasi rural development authorities. the commitment In particular, to the projectof the prefecture and c'unty Governments has ensured the PMOs' ability to operate successfully. 4.22 The role of PMOs in financialintermediationneedsto be cons;dered in the context of the modeladoptedby Chinabefore1979, where resource allocationwas centrally planned.Creditpolicythenwas largely aimed at meeting the transactionrequirementsimplied in the physical plan.The budgetaryfunds carriedno interest as fund allocationwas determined by planningconsiderations ratherthan relativeprofitability. The introduction of loanfinancing of investmentsand the more activeuse of interest rates, following financial reforms, have now causedenterprises to take a closer lookat some of their loan requests.Viewedin this light,there is no doubt that the PMOs have performed a usefulallocative role. However, in the contextof a PCR, it is not possibleto make a detailed and comparative assessmentof their efficiency in the allocation of resources, and the viabilityof the enterprises financed. 4.23 The Government (MAAF)has taken a decision that the PMOs will continue to function in the projectcounties. Their immediatetasks include: ensuring adequate maintenance and effective operation of investmentsmade; continue the programme of soil and watermonitoring initiated under the project; continue monitoring of benefits, and taking measures to increase these; and prepare feasibility studies. for further expanding project investments. Their role in recycling recovered funds, to promote rural investmentand employment, is considered by Government to be important. However, if their role in coordinating and implementingrural development activitiesis to expand in the future they need to be strengthened, particularlyin the field of financial management and accounting. Furthermore, to ensurea uniformapproach to creditdecision making,their role in creditoperations needs to be reviewed, particularlyto ensure that they followsoundlendingcriteria(whichare consistent with those adopted by specialised banks such as ABC), and that the creditpolicies adopted do not lead to misallocation of resources. V. PROJECTIMPACT Impact Intended 5.1 At appraisal,it was expectedthat the project would lead to an increase in yields on a total of 182,000 ha of cultivated land,by additionalor improved irrigationon 153,000 ha; improved drainage on 139,000 ha; and improving47,000ha of Shajiang black soil. In addition,an estimated25,000ha of wastelandswere to be reclaimed and brought under crop cultivation,forestsor orchards. As a resultof increased yieldsthe Jrojectwas expectedto inducefarme:;to reducethe area under foodcrops  -35- (particularly maize and sweetpotato), with a corresponding increasein the areaundercash crops (cottonand oilseeds). 5.2 The projectgeneratedincreasein total foodcrop productionwas estimated at 44% (from334,000tons to 481,000tons),cottonproduction at 74% (from14,000to 24,000tons),and oilseedproduction from 7,000tons to 24,000 tons. The project was also designed to generate farm subsidiary productionin termsof fruit,fuelwoodand lumber. The project's overal economicrate of return(ERR)was estimatedat 30%. 5.3 The sections belowreviewthe changesbroughtabout as a resultof the project, with the objective of re-evaluating project impact, and comparing it with SAR expectations.In doing so, information on land development, landuse and agriculturalproductionduring the period of project implementation,is drawn from data providedby the respectivecounty PMOs.A comparison betweenactual achievementsand appraisal projections cannot be made on a provincial basis,sincethe analysis at appraisalwas done for the projectas a whole,and the SAR does not give a breakdown of the basicassumptions by Province. Impactor'Soil Salinity, and Drought1/ Waterlogging 5.4 The programme of soil and water studieswas to provideinter-alia, a basisfor evaluatingthe physicalimpactof project works. Although the period of observation is stillshortand few consolidated resultsare yet availablean attemptis made to draw somepreliminary conclusionsfrom.the findingspresentedto the mission. 5.5 The table below summarizesSAR targets, the actualpre-project situation (1982)and the statusof overallland improvement,as at mid-1987. Appraisal PCR Pre-ProjectFull Development Pre-Project In 1987 ........... ha) A/................ TotalArableLand 210.0 210.0 205.0 205.0 IrrigatedArea 71.0 153.0b/ 74.2 153.1b/ DrainedArea 43.0 182.0b/ 62.7 181.2b/ Saline/AlkalineArea 75.0 0 58.7 13.2 Wasteland 25.0 0 14.3 1.7 Waterloggingin Anhui n.a. n.a. 29.9 0 a/ Thereis overlappingof areas betweenthe different categories. b/ Area includesimprovementof existingas well as new irrigation/drainage infrastructure. 11 The term salinityas used here refersto salinityand alkalinity which are both presentto varyingdegreein soilsof the NCP.  CA.' - 36 - The principaldifferencebetweenactualachievementsand the SAR targets were firstly, a large increase in the area drainedas a resultof project investments,and secondlyan overestimationat preparation/appraisal of the areasaffected by salinity. 5.6 Anhui. The soils in the Anhuiprojectareas,known as "shajiang"t blacksoils,are very heavyclayswith low permeability. The predominant impedimentto a healthycrop environment is waterloggingas a consequence of occasionalheavy rainfallsand insufficient naturaldrainage, and per ods of drought.Salinity problemsare negligible. The projecttherefore focussed on ameliorationmeasuresto improvestormdrainage and groundwatercontrol. The importanceof drainage was underscoredby the simultaneousneed for irrigationdevelopment.By mid 1987 a totalof 34,500ha were brought under irrigation,covering 76% of arableland (Table10).The areas provided with drainageare reportedto have reached 41,000ha or about90% of arable land underthe same period. 5.7 Surveyresultsindicate seasonal groundwater fluctuations of lesser amplitude than beforeand depthsbelowcritical levels. Thus in 1986 and 1987 all previously waterloggedareaswere reported to have been reclaimed. 11 The drainage systemcompleted up to July 1984 passeda test that month hen it discharged a rainstormthat precipitated 189 mm over the area in 3 days.The projectprovidedirrigation and drainagein an integrated system consisting of a drainage-cum-irrigation networkwith reciprocal controls and water storage for pumped irrigation.The success of the schemes provided under the project has thus been demonstrated. Any increase in cr'pping intensity in the project area is directly attributableto the provision of irrigation ar. drainagefacilities. Howeverin order to sustain this improved soil and water regime,vigilant water management anL prompt i'aintenanceeffortsare required. 5.8 Henan. The project areas in Henan were selectedwith particular referenceto salinityproblems. Withina total projectarablearea of 57,100 ha some 22,000 ha were affected beforethe project.Some areaswere also severelywaterlogged,aggravating the salinityproblemto the extent that crop land was classified as wasteland.The project provided drainage designedto combatseasonalwaterlogging. 5.9 The drainedarea underthe project increased from about 32% to about 84% of arable land or by about 30,000ha. This was acconolished througha networkof open drainswith relativelywide spacing,supported by a dense coverage of irrigation wells. Incrementalirrigationdevelopment reachedabout21,700ha of tubewell irrigated area. About 5,000 ha of wastelandwere reclaimed(Table11). 1/ It is notedthat very low rainfallin 1986 and 1987 contributed to this image.  - 37 - 5.10 Repeated surveysindicate that the intendedlowering of groundwater table has been largelyachieved. This is reflectedin a remarkable lowering of salinity levels(from38 percentof the arable land being affected to only 9 percentin only a few years).However, soil salinity in the project area is of a seasonalnaturewith its peak occurring beforethe onsetof the rainy season (June). As salinity levels are also highlydepencetnt on rainfall, in additionto groundwater level,it is difficult to quantify the effect of projectdrainage and irrigation workson these levelsonly from a few years of observations,of qhichthe last two have been exceptionally dry. Several more years are required beforea final judgement on these effects can be made. 5.11 Shandong.The projectareas in this Province,comprising 102,400ha of arable land (of which85,600ha is cultivated) are all locatedin the lowerYellowRiverbasin and have deep, lighttextured alluvial soils and poor drainage gradients.The watertableis usuallyshallowand salinity and waterloggingare widespread. A highly variable rainfall regime causes frequent droughts and occasional floods.The groundwater is often saline, reaching8,000ppm in places. 5.12 At the outsetof the project,94,100ha or 92% of arableland were affected by salinity and waterlogging, or were {;asteland.An overlapping areaof about 51,300ha was additionallyconsidered severely drought-prone. Project interventions focussed on upgrading and extending the existing skeletondrainage systemand on providingirrigation. The drainswere to be used also for conveyance and storageof water for pumpedirrigation and rechargeof groundwater.The drained area thus was expanded from an estimated 31,000 ha to about92,000ha, usinga varietyof different drain spacingsand profiles(seeTable 3). Total irrigated area was increased from about50,000ha in 1982 to about80,000ha in 1987.1/ 5.13 Results from the soil and watermonitoring programmeset up under the projectshow a significantreductionin salinity levels,with 42,600 ha affected in 1982 down to 8,500 ha affectedin 1987.In the same period waterloggedareaswere reducedfrom 42,900 ha to 8,000 ha. Reclaimable wasteland was likewise reduced significantly (Table12). There is litt'e doubtthat the measuredimpactis closely related to the irrigation and drainage provided. inf.rastructure furtherM&E is required Howe,fer to confirm a sustainedimprovementalso in yearsof rainfall above the norm. It is also importantto note that in the Shandong projectareasmuch of the canal networkand major structuresfor irrigationand drainage were *n existence 1/ Under the project3,804new tubewell unitswere implemented as well as 141 irrigation pumpingstations installed on main and branchdrains. These together are commandingan irrigated area of about 46,000he, 16,000ha more than has been reported. However, the PMO also reported a presentproportion betweenareas irrigated from low-lift pumping, tubewells and YellowRiverwater of 57%,34% and 9% respectively. From this information it is deducedthat over the projectperioda shiftfrom YellowRiver water supplyto groundwater had taken placeon about 16,000 ha.  - 38 - at the startof the project. Neverthelessthe project supplementedthe existinginfrastructurein such a way that its full potential could be activated. LandUse and Crop Development 5.14 Land Use. The table below summarizes appraisal projections and actualchangesin projectareasland use (fordetailssee Table13). Aopraisal Estimates Actual Pre-Project Completion Pre-Project Completion (19795 T(19825 (1987) IrrigatedLand 71.0 153.0 74.2 153.1 RainfedLend 107.0 29.0 103.0 27.4 Sub-Total (178.0) (182.0) (177.2) (180.5) Forests/Orchards 7.0 22.0 13.5 15.3 Reclaimable Wasteland 25.0 - 14.3 1.7 Lossof Area - 6.0 - 7.5 Total 210.0 210.0 205.0 205.0 5.15 CroppingPattern.Table 14 sets out a comparison between appraisal proJectionsand the actual changes in cropping patternsin the project areas;the salientfeaturesare summarized in the table below. Appraisal Actual Pre-ProJect Full Develooment Pre-ProJect 1986 (i9795 (1991) (1982) CroppedArea Wheat 92.6 93.2 67.3 111.9 Maize 49.0 45.0 41.7 47.3 OtherCereals 15.7 17.4 14.1 13.0 SweetPotato 23.8 15.3 21.7 20.6 Soybean 24.1 25.1 26.9 27.2 Oilseed 9.5 17.4 11.3 13.9 Cotton 26.8 32.7 43.7 40.3 Kenaf& Others 3.8 4.2 9.8 19.7 Total 245.3 250.3 256.5 293.9 Net Cultivated Area 178.0 182.0 177.2 180.5 CroppingIntensity 138% 138% 145% 163%  39 - It is interesting to note that therewere alreadysignificantchangesin the cropping pattern prior to project implementation between1979 (thepre- project year used by appraisal)and 1982 (actual pre-projectyear); at app-aisal, no significant changesin croppingpatternwere projectedfor the "future withoutproject" situation. 5.16 Present(1986)overallcropping intensity in the project area is estimated at about 163% (see Table 14). This compares with the SAR assumption that cropping intensity wouldremain 1irtuallyunchanged as a result of the project(at around138%).The highercropping intensity (as compared to SAR) is principally on account of significantly higher areas planted to wheat,sweetpotato,cotton-and other cro,ps(kenaf,vegetables, etc.)than thoseestimated at appraisal.It is not clearwhy the SAR assumed an unchanged cropping intensity in spite of a significant increase in irrigated area projected as a resultof the project. There are considerable variations in cropping intensity amongprojectareas in the three Provinces, possibly reflecting different irrigatedareasamong the threeProvinces (see Table 13). 5.17 With regardto irrigatedcropping, no data have been systematically recordedby the countyPMOs.The appraisa.lreportalso did not distinguish between irrigated and rainfed crops in its projection for futurecropped areas,althoughthe report presented crop water requirementsfor eight crops. According to countyPMOs,the major irrigated crops in the project areas includepaddy,wheat,maize and to a lesserextent cotton (depending- on rainfallduringthe growingseason). 5.18 Crop Yields. Table 15 sets out averagecropyieldsduringthe period1982-86, as recordedby the countyPMOs..Presentyields(1986)of all crops except sesame have exceeded the full development (1991) appraisal targets.The countyPMOs expectfurthermarginal increasesin cropyieldsas further improvementin farm land conditions, in particularwith regardto salinity,is expected.It should be noted that the actual pre-project average yieldsof the important crops (wheat,maize,paddy and cotton)were alreadyabove the levelof the appraisal fulldevelopmenttargets. 5.19 Data on yield differences betweenirrigated and rainfed crops has not been systematically recordedby the countyPMOs. Cropyields shown in Table15 therefore indicateoverall average crop -yields, includingboth irrigatedand rainfedareas. Informationobtained in the field indicates the followingapproximateyield differencefor major irrigated crops. Anhul Henan Shandong Crops Irrigated Rainfed Irrigated Rainfed Irrigated Rainfed **66 0......... ... tn/h. ........ (tos/a) ............... Wheat 4.5-5.0 3.4-4.5 5.0-6.0 1.8-2.2 4.5 n.a. Maize 4.5-5.0 3.0-3.8 4.5 2.3 4.5 n.a. Cotton 1.1-1.5 0.8-1.1 1.5 1.0 n.a. n.a. Paddy 6.0-7.0 - - - -  24 - 40 - 5.20 Cropyieldsin non-project areasin the same countieshave also increased to similar proportionally levelsas achievedin the projectarea. These increasesin the non-project areas are reportedly due to ne demonstrationeffect of the project which, withthe ruralreform, led to furtherinvestmentin irrigation and drainagefacilities. 1/ 5.21 CropProduction. The tablebelowsummarizes total crop production as estimatedat appraisal,and as actuallyachievedin 1986.In all cases oilseeds) (except presentproduction the appraisal exceeds projection. Appraisal Actual Pre-ProjectFullDevelooment Pre-ProjectComplet1on (1991) (1982) (1986) ...... ........ (0 tn)........ ..0. .... .. '0 os *.... Cereals 250.5 380.2 385.1 731.4 SweetPotato 61.6 66.9 71.2 106.8 Soybean 21.7 34.3 27.9 39.5 Oilseeds 6.7 23.5 8.9 20.8 Cotton 13.6 23.7 33.2 43.7 RuralReforms Project" and "Without Assumptions 5.22 In re-assessing the impact of the project a general appreciation of the ruralreforms, whichintroduced a new agricultural production incent:ve system, is essential. The reforms were initiatedin 1979 and popularized across the entire project area in 1981. Broadly, the Principal changes brought aboutby the reforms and the introduction of the "production responsibility system" include:a) establishing the far household as the fundamental unitof agricultural production and management; b) gradual substitution of the production quotasystem *itha "contract" system, giving farmers moreflexibility in determining wha.cropsto growand whereto sell their products; and c) a majoradjustment in the leveland structure of fz-m prices. Following these reforms,the agricultural sector has performed exceptionally well since 1979; agricultural production in the countryis estimated to havegoneup by 10% p.a.during the period1980-85, as compared to an average of 3% p.a.in the preceding 23 years.Essentially, the reforms (including the shift in contro' over resourcesfrom collectives to individuals) have resulted in significantly improved producer benefits, whichin turnhave induced farmers to finance higher levels of on-farm investment and increased use of chemical fertilizers, and led to better on- farmmanagement. 5.23 whichcouldallowan accurate Dataare not available, assessment of the net benefts whichwouldhavebeengenerated in the projectareasas a resultof the reforms alone,i.e withoutthe project.Whiledata on yields being obtained in the non-project areas are available, the levels of investmentwhichhaveoccurredin theseareas(andwhichhavecontributee in achieving these yield levels) are not known.Alsonot Knco.nis the pre- project of the land, status in terms of the extentof wateriogging and 1/ The Borrowerpointsout that projectareaswere selected becauseof their poor soil and low production.But yieldshave now surpassed non-project areas.  - 41 - salinity present in theseareas.Discussions with countyPMO staffreveal that due to both the reformsand the demonstration effectsof the project, considerableinvest,nent in irrigation and drainage has takenplace in the adjoining non-project areas.Generally, crop yieldsrecorded in 1986 in the non-projectareas are between10-20%lowerthan those in the projectareas (though, in a fe" casesthey are virtually equal). 5.24 yieldsreferred The pre-project to in the SAR were considerably lower than those actually recorded in 1982 (by the countyPMOs).For the purposes projectimpact,1982 average of re-evaluating yieldshave been used for the base year. In projecting "without project" yields,the average yieldsfrom 1982 and 1983 have been calculated,and further increases applied to it on the same bases in percentage terms,as in the SAR. The tablebelow summarizesyield assumptionsfor the three Provinces combined for the principalcrops,and comparesthem with the SAR assumptiofis: SAR PCR a/ Pre-ProJectb/ W c/ With 1982 W With (tons/ha) ....... ...................... Wheat 1.4 1.6 2.2 2.5 3.4 4.4 Maize 2.1 2.3 2.9 3.5 4.1 4.4 SweetPotato 2.6 2.6 4.4 3.3 3.6 5.0 'Soybean 0.9 1.1 1.4 1.0 1.3 1.6 Cotton 0.5 0.5 0.7 0.8 1.0 1.1 a! Weightedaveragefigures. b/ Pre-projectyields. t W =Without project" With = "Withproject" assumption. assumption. Yields"without project" for three of the most important crops of the proJect areas (wheat, maize and cotton)are around100%higher (142%in the case of wheat)than the SAR estimates.As assumed in the SAR. "without project" cropping patterns and cropping have been assumedto intensities remainunchanged from the 1982 recordedfigures. Farm Incomes 5.25 Representativefarm budgetsfor 0.7 ha 1/ landholdingshave been prepared for the threeProvinces to show the impactof the projecton farm incomes(Tables 23 to 25). Separate farm budgets have been prepared reflectingthe differencesin cropping patterns and pricesbetweenthe three Provinces(onlyone farm budgetwas prepared at appraisal).The cropping patterns used representcropsgrown in the different projectProvinces,and are basedon data providedby the respective PMOs.The financial pricesused per farm in the projectarea varies 1/ The averagesize of landholding slightlyby Province(0.7ha in Anhui,0.6 ha in Henan and 0.78 ha in Shandong).  - 42 - are shown in Table 28. The estimated net income "with project" exceeds "withoutproject"net income by 75% in Anhui, 46% in Henan and 27% in Shandong, as compared with the 55% increaseestimated at appraisal.The greaterimpactin Anhui and Henan is principallydue to the higher cropping intensities "with project",and substantially higheryields with projectfor most crops than were estimatedat appraisal. 'he lower increase in ret income in Shandong is on account of both higher crop yield estimates "withoutproject"as well as a lowercroppingintensity than in the otner projectareas. EconomicRe-Evaluition 5.26 Given the significant differencesin croppingpatterns,as well as in pre-projectproblemsof drought, waterlogging and salinity, economic rates of return (ERR)iave been estimated for the three provincialproject areas separately. The analysishas been carriedout in 1987 price terms, with actual investment costs restated in 1987 price terms by using the wholesale price index. 1/ 5.27 At the outset it is necessaryto recognise that tFe project was aimed at overallland improvement, with the emphasisbeing on the provision of drainagefacilities. These, combinedwith irrigation were expected to reduce and controlsoil salinity,and maintainthe depth of the groundwater table at acceptablelevels.While yields over the past few years have shown significant increases, It is necessaryto recognizethat the future weather pattern(pasttwo years have been relativelylow rainfallyears) will have an important bearing on how the system performs. Also, *atisfactory operation and particularly good maintenance will be critical to the continued satisfactoryperformance of the drainagesystem. 5.28 The details regarding land develooment, total cropped area, croppingpatterns, yields and overall crop production and related costs during the period 1982-86 were discussedin the sectionsabove. For the purposesof the analysis, it is assumed that cropping patterns "with project" will remain largelyunchangedin the future,from those prevailing will remain at in 1986;also, it is assumedthe levels of input utilisation the presentlywecordedlevels. 5.29 All investment costs have been included in the analysis. For restatingthese into economicterms, conversionfactors in line with those used in recentlyappraised projectsby the World Bank, have been generally production applied.2/ For valuing incremental of traded commodities (wheat, 1/ As publishedin "InternationalFinancialStatistics",IMF. The annual inflationrates used were 1982-2.2%,1983-4.4%,1984-4.0%,1985-8.6%. Missionestimatefor 1986 of 7%. 2/ Conversionfactorsused were 1.00 for earthworksand nurseries/tree plantingcosts, 1.11 for structures, 1.09 for tubewe'lsand machinery/equipmentcosts, 1.07 for rural electrificationand road, 2.26 for research,extensionand trainingcosts, and 1.13 for project managementcosts.  43~~~~~~~~~~~~~~~~~~~- - 43 - maize, paddy, other cereals based on sorghum, oilseeds, cotton, soybean) and the cost of fertilizers (Urea and DAP), 1990 and 2000 border prices, in 1987 constant terms, have been derived from IBRDcommodity p-ice forecasts (see Table 27). No distinction in prices has been made in valuirv incremental production and costs prior to 1987, since its value is not significant in the context of the total analysis over 30 years. Per hectare budgets for tne different crops, with estimated economic costs, are shown in Tables 16 to 18. The economic value of on-farm labour (all of which has been included in the analysis) has been estimated at Yuan 2 per manday (the present financial wage rate ranges between Y3 to Y3.5 per manday). 1/ Incremental O&M costs have been estimated in detail and are shown in Table 26 (conversion factor of 1.00 applied, for analysis). 5.30 The "without project" assumptions have been discussed in paras 5.22 - 5.24. While it is impossible to accurately eliminate the effects of the I . rural reforms from the analysis accurately, an atter t has been made by significantly increasing the "without project" yield assumptions (as compared to the SAR). It is assumedthat these higher yields are the result of both better farm management and higher input application; effects on uwithout project" yields from higher investment are excluded. 5.31 Based on the above assumption, and a 30 year period of analysis, the table below summarizes the key results of the analysis carried out on a provincial basis (see Tables 29 to 31'. Unit Anhui Henan handon2 Base Case ERR % 33 75 64 NPV at 12% * m 218 369 292 Total Inv. Cost in Economic Terms Ym 99.: 86.7 191.4 Inv. Cost/ha Y 2,394 1,671 2,205 Switching Values (at 12%) Total Production "Without Project" +30% +38% +12% "With Project" -19% -23% - 9% Total Investment Cost +293% +595% +222% 1/ The Bank i; using a conversion factor of 0.57 for the economic cost of farm labour (SARfor Third Rural Credit Project, which includes the provinces of Anhui and Henan.)  - 44 - In addition,the ERR for the projectas a wholewas estimated at 56% (NPVof Y879million at a 12%discount rate).Thiscompareswiththe SAR estimateof 30%. An important factorwhichexplains the significant difference between the two ERRsis the factthatwhileactual croppingintensities increased "with project", at appraisal it was assumed that they would remain unchanged. 5.32 Thereare significant differences in the ERRs estimatedfor the 3 provinces.This is a reflection of variousfactors, the importantones among whichare: (i) differences in actual investmentcosts per cultivated hectare, with costs in Henan being 30% lo%er, on a hectarebasis,as comparedto Anhui, and 24% lower than in Shandong; (ii) differences in croppingpattern, with Henan and Shandong havinga significant percentageof cultivatedlandsplantedto highervalue (in economic terms) crops than Anhul (where31% of the cultivated land is plantedto the lowervalue sweet potatocrop); (lii)and the benefits from sirn costs (in existing major drainageand irrigation infrastructure) beinggreaterin Henanand Shandong. 5.33 Recognizingthe uncertainty of the "without project" assumptions, particularly in terms of isolating the effectsof the reformsfrom those of the project, switching valuesat a 12% discount rate were estimatedfor key variables (seeTable 32 for key results). The sensitivityanalyses shows that for individualcrops, "without project" yields would have to be significantly higherthan those assumed(in most cases,over 100%), for the provincialERRs to fall to 12%.However, for Shandongthe grossvalue.of total Uwithout project" production needsto be 12% higher,for the ERR to fallto 12%; in the~ case of Anhui and Henan,it would need to be 30% and 38% higherrespectively. Finally, the mission has expressed some doubts earlier in this report (see para 3.21)that possibly all investment costsmay not havebeen correctly recorded. In the case of all three provinces, in.estment costs would need to be very significantly higher,than those recorded, for the ERR to fall to 12%. On the other hand,however, any significanterrors in recording actualyieldsover the pastyears (whichalso providethe oases for future"withproject" yields),would have a significantimpact on the estimated ERRs. Total value cf "withproject" production needsto be 19%, 23% and 9% lower respectively in Anhui, Henan and Shandong, for the respective ERRs to wall to 12%. Finally, for the projectas a whole,a 251 S reduction in net i*ncremental on-farm benefits would bring down the re- estimated ERR from 56% to 37%. VI. IDA PERFORMANCE 6.1 The overall performance of IDA/World Bank must be viewed in the lightof tie fact that this was the first agriculturalproject which it financed in China. The importanceof the North ChinaPlain to overall agricultural production in China providedthe justification for locating the first project there.Furthermore, sinceconsiderable work had alreadybeen done locally on the problems of waterloggingand soil salinity, the basic technical packageto addressthese had been broadlyproven.Inevitably, as a result, whilethe projectwas not designed to introduce any new technology,  _ 45 - it was designed to enlargethe scopeof the work alreadydone,and serveas a model for futuredevelopment of salineand waterlogged lands.Through the provision of much neededfunds,it playedan important role in accelerating the develovment of irrigationand the controlof waterlogging and salinity. Whi'e confidence was expressed,at the time of appraisal, on the abilityof the countygovernment to implementthe project(whichhas been validated), littlewas knownof its abilityto implement more complexprojects(in terms of usingthe projectto introduce new technologies); therefore, the approach adopted to base the project on large scale replicationof what was essentially a fairlysimpleand triedout technical packagewas justified. 6.2 A weaknessof appraisalwas that projectanalysis was basedlargely on 1979 data (pre-reform), and that the SAR gave littleinformation on the "with proJect" land developmentprofile assumed for the purposes of analysis; this, inevitablymakes it difficult to draw comparisons at the time of preparingthe PCR.There is also the situation (as shown in Table 15) where actual ore-project yields (1982)as recorded by countyagencies are in some instanceshigherthan the "withproject" fulldevelopment yields assumed at appra'sal. 6.3 There have been changes made to many of the physical targets(see Table2) set for the differentcomponentsat appraisal. While some of these could have been foreseen before projectstartup (possibly throughmore projectarea specific investigations), most of the changeshave come as a result of the changing rural environmentand improved producerincentives broughtaboutby the ruralreformsinitiated by the Government during the periodof projectpreparation. 6.4 The Bank'ssupervisory effortwas adequate, particularly in view of the problem free nature of project implementation. A total of five supervision missions were fielded over the five year period of implementation; good continuityof staff was maintained during these missions. An important featurehas been the supportgivenby the Bank to the PMOs and projectrelatedstafffrom very early in the project cycle; this has eventually resulted in particularly the countyPMOs becomingimportant locallevelagencies for promoting and coordinatingthe implementation of both landdevelopment activities, as well as overallruraldevelopment. Bank missions reviewed the M&E formatfor data collection; they also assisted in reviewing the design of a revisedlow-cost tubewell(workfor whichwas initiated by CountyPMOs),which is now widely jsed in the pro,ect areas. Project accountingwas reviewed by the Bank,and was foundto be adequate; also trainingin accounting was given to staffat the beginning of project implementation. However, with the benefitof hindsight, it seemsthat more emphasis shouldhave been placedon providing more in-depthtraining to PMO staff in project accounting (giventhat therewas no priorexperience in accounting for suchmultilaterally financed projects).  - 46 - VII. CONCLUSIONS AND LESSONSLEARNED 7.1 The project has been implementedduring a period when the agriculturalsectorof Chinahas undergone significantchanges.Agricultural productivityand production have both shownremarkable ratesof growth,all over the country,particularly in the early 1980s.While thiswas the first acriculturalprojectto be financed in Chinaby the World Bank, it was based on the resultsof many years of experimentsand work already done in addressingthe problems of waterlogging, salinityand droughtin the North ChinaPlain.Any conclusions drawn at this stage,on the project and its implementation,must be viewedagainstthis background. 7.2 While the basictechnology was alreadyknown,the projecthas made a valuablecontributionin enlarging the scopeof the ongoingprogrammes for soil and water resource development in the North China Plain. The continuationof the soil and water studies initiatedunder the project shouldwiden the basis,and allow for improvements in the planningof future worksof a similarnaturein the NCP. The high levels of cost recovery, combined with external financialsupport, have playedan important role in supportinga broadbasedrural development process. In this respect, IDA financial supporthas ensuredthat fundswere available locallyto meet the increasingdemandfor such funds, brought about by the policy reforms initiatedand the resulting improvementsin produLcerbenefits. 7.3 The institutional impact of the project has been significant,. particularly at the countyand lower levels.Through initiativestaken at this level, an institutional framework has been established for promoting and coordinatinga programme for comprehensive rural development, encompassing alongwith soil and water resource development, the development of rural infrastructure, crop development,forestry, aquaculture,rural industry, and village level enterprises.The sustainability of this institutional mechanism in the futurewill dependon continued commitmentof the local level officials, and support(technical and administrative,as well as the provision of training) from higherlevelinstitutions. 7.4 While it is impossible,withinthe time and data available for preparing the PCR, to isolatethe economic benefits generated by project investmentfrom thoseof the policy reforms, the analysis summarizedin Chapter V shows that on the whole economic benefits have justified the investment.The high economicrates of returnresultpartlyfrom benefits of sunk costs (particularly in Henan and Shandong);1/ but the analyses also provide justification for continuing,with sultible improvements and changes,the programme initiatedunder the project. 1/ Project emphasiswas on deepeningand wideningthe existingnetworkof main and branchdrains,and supplementingthesewith an adequatesystem of lateral, sub-lateraland fielddrains.  - 47 - 7.5 Variousaspects of the projecthave contributedto its successful implementation. These must be viewedin the contextof the projectbeing a high profileone (beingthe first IDA financed agriculturalproject) and therefore one which received considerable Government attention.Also, the projectwas implementedduringa periodwhen the beneficial effects of the policy reforms were being most felt. Some of the major lessonsand conclusionswhichcan be drawn from the experienceof this project are enumeratedbelow: i) the projecthas proventhat the mix of land improvementactivities promotedby the projecton a largescaleis a successful technology for re-establishing and maintainingthe agricultural productivity of areasendangered by salinity,water loggingor drought,and that this technologycan be appliedat an attractiveERR; ii) the technologyto be promotedthrougha largescaleprojectmust be locally provenand more important, acceptableto both the farmers and the implementingagencies; iii)the success achieved underthe project, is to a largemeasure,the resultof the high degreeof commitment at all levelsof Government to the project. Among other factors, this was broughtaboutby theiractiveparticipation duringproject preparation,as well as during planning and designing actualprojectimplementation. This processof dialogue went down to the naturalvillagelevel; iv) the organizational arrangements for the projecthad three important features which contributedto its success: first,the effective coordination mechanism, the countyPMC, was set up at a fairly low level, thereby ensuring proximity to the actualimplementation agencies (allowing for quickresolution of problems, as opposed to the more removed provincial or national level coordination agencies); secondly, technical staff for the county PMOs were originallydrawn (albeit, initially on a temporary basis)from the implementing agencies, ensuring their familiarity with the operationsand staff of theirparentagencies; and thirdly, the countyPMOswere given the financial author.ityby beingrespor,ible for disbursing fundsfor projectexecution. In addition, as noted by Bank supervision missions, the countyPMOs were not only staffed with adequate numbers, but also showed a high degreeof stJff continuity from the startof the project; v) throughthe successin revolving returnedfundsby supporting small scale rural enterprises,the project has shown that a rural development"type"agency(likethe countyPMO) may be better able to initiate lending for such activities,given its better understandingof local level conditions,than specialisedbanks which may in the initialstagesbe lessfamiliar. After the first stageof settingup lending operationsin ruralareasfor promoting income generatingactivities,banks in the longertermmay be bettersuitedto take over this role,combiningit at the same time with savingsmobilisation;  -48- where vi)iinally, agencies implementing have experience no prior with World Bank projects, necessary training up with regular followed monitoring,must be givenon aspectssuch as projectaccounting and recording of physicalimplementation to ensurethat such accounts and recordsconform with WorldBank requirements.  - 49 - ChOzXt. CHINA: NORTH CHINA PLAIN AGRICULTUREPROJECT Page 1 (Cr. 1261-CHA) IMPLEMENTAT'7NSCHEDULE 1.12 - 1 9t3 1964 Ion 1 2 3 4 1 2 3 1 2 3 4 1 213 1 2 LINGXIAIV - .~~~~~~~~~~~~~~~~~~~-a $ |"G t < U t ; 4raft PbngSsmagm~r t . ._ 5. = _ __. VW m a ic SC T- dW PAMSM COl_DwbM 0e.le Onmp con"ACO STflfulew s - c . m q m e c e c- 0w_: Td_b........ _ _ _ - -* _. 0 - . - - __ _- DsMI*d OmiaP - Cg.u,uet,u: Tubm toI -. b m .. . -. - - , . T T- *_ . ... q$_ . _ *. _ W ; . C = be ._icc ...... cc 54,mc PgW LWu Cwmngs, Tg.l = '-' - - a- -- '5t'- . 4 0..., PAN& ~ ~ _____ ~ . c. i c _n c e m, c _ c _..._. a 4 cc ---a c 0 e i GUOYMO~*aIdI. Cofttwtin: qgsi---- -- Smacaam - …………  50 - - Chart 1 Page 2 CHINA: NORTH CHINA PLAIN AGRICULTUREPROJECT (Cr. 1261-CHA) IMPLEMENTATIONSCHEDULE 1982 1983 19.. 1985 tu tem I 234 12 3412 3 4 .I2 34 1I234 32 sulK, sDxtWdtDev l« - r--- - - - -…- - Detailed Design Clstructin. Tuhwerlls -- - - - ---- - ---- .SllANGCIU ion.u Cwstiuc -5et,ttfvetiol.t|11s~ OnIfwm Works Tubr. L _ . a _ _. e., a ' __ .a ,a,e,..a,a ……… _. _. ' r a .. 'a o Structure n--- I -- - - - - - --- Pow Lis . - _. ..- _- - S,Idinp - --- --- - T Structur - - DeuIlrd DeiSgn On.Iann Worlksa.aaaaa aaaaaa aa a Cotnstction. Power Lines TubeweIls -- - - - -- Busildings- MINGUANI Design OeuHaed construction: Tubewalelh Structures -- aa aa- aa OnlawmWork5-- a PoiwerLne -T-7- -I - Ea-I BuildinopoedinSA ~ MINGUAN ~ Acua Township Project Now B ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I t_ _ Managemnt Groues PRO 410 TowbsIips) (40 staff) Towshi 1" Projec rww _ b < 17,0-atneg Grloup ' Xt1 pi Mm4gamontGp T > Z (4 Tamships) pm Ie Minging I n~~~~~~~~~r r1 MD | Prelit tObnS"D | | tiMty townships) staff) (18 ~ (123 | ~ ~ ~ ~ ~ II ~ ~ ~ ~ ~ ~ 3 tY Twsip Prjc S-H Ic I Ms Townships) | 4 St aff -R| -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- zosi rle iginCit - J4 - TS-  -52- Chart 3 CHINA: NORTH CHINA PLAIN AGRICULTUREPROJECT (Cr. 1261-CHA) ORGANIZATIONOF OPERATION AND MAINTENANCE I aSEC I l~~~~~~~~~~~RIII l . X1 . ~~~~~~, , B.~ 4 , 4 | 1 20 W3 e QllEE IE c?lEE clttll cm~~~~~~~~ec OI. ON .s VIL VILLAGE VILLAE SCI S 2 W 2 cmnistratiw Viittap) Aiistr geia) CAministraI viLLag) 6AP 1, 2, 3, au. 1, 2BBt 1, 2, 3, tet. a *femt with wwmcd vwktrwt with cmeCd  am [or. ia4-Dm1 uIftijeS At um hI Omfty Data TItI Arm ('enDton) 2 an a I= lm 7910 iss u mb. ofTlb.*dps I/ 49 U3 71 27 1? 8 a6 at 19 Pmojeft Ann BKaK1tod Bdta ZI Tlad Ahum ((OD ha) 23.2 21.0 23.3 35.2 26.0 17.4 4.0 56.3 3.7 lb. or lTO_NPI 8 11 a 7 4 5 12 11 e lb. of Ad nisrmtiw VlImn 6S JO 99 129 92 83 35 40m 489 Ln lb. of Nbkorl SWill D 33S 567 S9 351 32D 347 430 517 ProJm Arm: (qarim of h_Iicators l932:1935 3/ 1572 ltal Rbulatkrn ('OD) 81.4 77.0 106.3 192.6 113.8 107.8 163.9 237.3 196.2 lb. or lhtumlw illages W/Electrsicity 15 72 181 375 312 96 n.a. n.a. n.a. lit Per Capita lnmw (Yorn) 4/ 9B n.a. 157 244 257 147 n.a n.a. 170 Per ChFdtarFodgain Pru1.toiEE (tonspranm) 5/ 0.23 0.29 0.22 0.34 0.18 . 0.18 0.3B 0.39 0.38 1i1E p,ylatilm (l.ow) 83.7 88.5 110.7 195.8 114.9 111.2 158.5 211.3 192.0 lb. or lb12rd l Village V/Eleatricity 4S5 2YS 454 47? 351 295 - 1.2S16/ - lbt Per CbFita Imne (1Ytm) 619 n.a. 7W0 579 4S9 564 n.a. n.m. 313 Pfr Cbpita FoodgrainPimd=Utmu (tmwpersol) 0.71 0.44 0.40 0.61 0.39 0.44 0.64 0.64 0.63 It 1979 dbta. A&ummn oixaipscqnalto mbmer of ' r. / Fnr PmujeCL moviltaring mad evmOAhn dbtta. or / Ebsda a enaqple of IW bdoslds in project. arms. For Anbui md Srnm u db available frm am cmrty anly (ftsqdgngn nnd Yucdheg). Fjmai LNaxL pd*Ato,&ict in Jly incluklo in OdCm faofpdn stantic. _ Fo cw!r pwnw.  U.I*IEEa bctual an of eta? LIi-a Uati oer-fAnarias al ADnh kbnn SZibndhns Total . oor-l-sl # tid-Lfr e_thw ad Drains Main & Iranch a3 13.300 51.648 5.025 7,4?? 43.15? .5es9 418 108 Lateral S Sub-Lateral .3 74,100 27.159 9.264 7.290 12.034 28,608 39 106 On-Fore Drain 1 a.3 4.290 4.105 3.134 n.a. n.a. Au. n.S. n.n. Irriegtion Ditches 1/ .3 0.620 - 1,10J n.C n.e. n * n.*. n.s. Land Smoothing ha 60.000 67.180 22.674 1.062 71.616 i ;7.000 107 bridge (mains branch) no. 536 ) 14.628 144 442 1.593 2.179 ) 129 121 Other Oridges. Culverts no. 13.200 ' 7.601 4.123 s-963 6.567 ) and Structures Pumping Station (ire-g.) no. 122 166 40? - 141 546 449 330 Drying floor .2 3.000 3.000 2.000 1.000 1.000 4.000 133 133 Drilled and Cased no. 8.4F0 6.950 1.022 2.705 3.604 7.531 99 108 Housng , no. 1.110 2.710 300 1.026 647 2,175 196 6o .Repair of Vld Wells I1J no. - 3.237 936 2.181 - 3.117 96 Electrificastin ' High Voltage Line km 700 1.706 39; 302 1.062 1.767 2S2 104 Low Vo1t4ge Line km 1.470 3,140 251 1,090 2.213 3,554 242 113 Sub-Stations no. a a S n.s. n.s. 6 lOs too Transformers no. 750 1.438 131 439 1,323 1.093 252 132 Roads Asphalt-Paved km 100 10 10 10 1o- 100 Earth-Crushed Stone km 30 128 128 - 126 42? 100 MachInery A Eoulnmnnt rriasatifn Maehin-rw Tubewell Pump no. 12.460 8.976 1.300 3.900 5.634 10.834 67 121 electric motor no. 5.920 3.993 456 3.900 2 6.41? 3311) 891 l 2I 95 3 116 Diesel Engine no. 6.S40 6.050 1.116 ) ) ) ) I Construction Machinery - 19 Sl 19 is 14 51 266 100 Form Machinery no. 2.058 6.602 3.594 2.376 1.263 7.233 351 t09 Fartli1ser/Acrocheaicals PAP tons 47.000 77.340 19.149 23.308 30.204 76.741 131 102 Agrochemicals tons 140 194 5 35 tB3 193 136 99 Sourc I Respective County Poos. It Data on field drain *nd Irrigation ditches not slways recorded by PO00. I/ Mllion estimate based on Information that bulk of pups procured were submersibl- electric turbine pumps. I/ Slothdiesel and electric motors.  &~~~~~~~~~~~~~~~~~ LAa PAiNdiqPaaa Item 1 MR ____ SIWS------ 2.66 na 1,566-3,110 a. 12,6 1,666-3,166 t,566-3ol6S 210266 11566-5*01W tl,6663,1611,5W65,666 66 1,266-2 Spacing n.a. 1,566-3616 3-5 34 3-3.5 3-3.5 3.A lepib ii 2.5-.5 n.. 3.5-4 w.. 2.5-3.5 ) 2.6 ) 2. 1 2 6 2.5-3.5 4 Bedudth A 5-1 ,a a. ne 5-16 12.S )2.6 212. 5-16 2-3 2-3 2 2 56 file 46ll sfl-te66l 566 2,666 1,261 41 466-6 s66-fill so6-fill 566 sit Us Spacing a 2.3 2.5 1.5-2 2-2.5 2.5-2.0 1.5-2 2 lepti, a 2 2 3-3.5 2.1 2.5 I.E 1.8 2 At 2-3 n.A. sea. n.a. 2.3 II1 1.6 1.5 2-3 1 1 1.5 1.5 IeAadtb 96-126 266 266 256 256 1666 466 266 266-29 560-600 561-661 Of6 of 566 Spacinga .6.-1.2 1.5 1.5 1-1.5 1-1.5 1.5-2 1.2-1.71. Ieptb a 1.2-1.5 1.4 1.5 1.2-1.5 1.5 SJ.-l0 2 k*Aduth a 1.5-2 n8. 1111. n.e. 1.5-2 6.5 6.5 6.5 1.5-2 I I I u A hiudpr iail fa aterlsqgingcmutrel. greudater). I Sluty.cente Offu C Salint ctral (saling gramadwate). 3 * Uturqgm and salinity catl *1 C * (re lift Irriuation). eaulgigcntirel F VAta gigcentral (tubwl irrigated area). C central *Surface d ainly. ranaff  NORTH CHINA PLAINAGRICtULTURE PROJBCT Tr-- Plantina - Actual Achievements in Province-wimp Pr-elct Areas J/ 1985 19sO 1997 Total 1983 1984 No. of of No. f No. of No.of Tree uTs Trees UA IrsA Ha tWA us Trees Ti Tm us ............................................... ('000)............................................... 0.4 672 0.5 899 0.6 635 0.4 2.891 2.2 Forest 299 0.3 386 1.5 - 30 0.1 507 0.6 704 0.0 1.241 Orchard - - - 0.0 - - 50 0.1 50 0.1 42 0.3 162 Intercropping 20 0.3 6.680 27.9 4.9 1.087 6.6 1.480 7.8 1,557 8.1 1.277 3.5 Wind break 1,279 3.5Ii n.. 622 n.sJSi. __f nl.a. 063 n.s. 261 n.a. Others n.a. 3.199 n.s. 3,876 n.a. 2.919 n.a. 14.493 n.a. Total 2.220 n.a. 2,279 0 Henan 1.1 985 0.3 33 0.1 n.a. n.e. n.a. n.a. Forest 219 0.2 898 n.a. 259 0.5 294 0.6 1.421 3.9 n.s. n.m. n.S. Orchard 83 0.3 n.-. n.a. 541 6.9 1.561 19.9 1.137 9.7 260 2.9 * n.a. n.s. Intercropping 1.9 n.s. n.a. n.o. n.a. Wind creak 919 4.4 998 6.6 714 3.3 457 - - - n-s. Others 28.1. 3.000 13.9. 2.171 6.8. n.a. n.a. n.a. n.a. Total 1.762 11.6. 3.513 Sti3ndon8 'a/ n.-. 1.380 n.m. 1.274 n.s. 2.33S n.e. 10.615 n.s. Total 4.246 n.a. 949 Source: County PMOs. Ph0s. SAR also does not give l/ Comparison with %AR targets cannot be made due to incomplete data provided bV Shsndong I! breakdown of targets for respective province-wise project areas. 2/ Annual number of crees planted are mission estimates based on annual expenditure data.  CHINA NORT CHiA PLIN ARICU1URE PROJECT (Cr. 1251-CIiA) Prawided undar ths Prolgct J/ fwt neIon - Fac4llti. and Enuiment Aaritu1tUrml Research and Shendnon Henan bs Anhui Man ouna lnux1-an a Vuchano Guayana Su1x1 1banaou fins Uangch-an (Nos.). Laricultural Research _ - - - 1 2t 1 1 / - - - I I I. Now Station Established 2 - 2 - I 1 2 2 Existing Facilities Improved 4 - 1 - 6 S 4 - 3 n.a. 3. Ne" Facilities Constructed 13 5 1 A/ 27 4. Lab. Equipment Provided 34 LAricultural Extension - - 1 n.a. - na 25 6 - 2 1 1. Existing Facilities Improved n.s. n.a 7 I 10 2. Ne" Facilities Constructed SoiUrnu: County PUOS. It SAR does not give corresponding targets. study. I/ Agriculture water research station established for *oillwater Agricultural station for seed multiplication. 2/ equipment. 3/ Includes optical, measurement, analytical 1/ I9V/PC computer. I4  co=in .1 AAmmalm u~l~~ ompme f =IAbLLG* B 1tbod 8I 12.3 0.2 36.34 92.7 U0.9 11.9 46.3 (2) (3s) 3 't _/ 26.6 17.9 10.9 13.0 21.1 45.0 15.6 5 ( 7) VAflu V - 98.9 35.2 2.6 10.8 1.5 31.9 11.2 (47) (68) flaiday A _pnt 6.1 3.6 12.5 3.9 3D.2 5 41.6 9.9 982 175 Eibul E3udrlfiatim 17.2 10.1 6.6 9.4 29.9 45.9 ;7.3 167 71 F.rtiUaw a Oumimals 37.4 22.0 14.7 19.1 32.46/ 66.2 22.3 71 1 1 Tme Pin*zhu 8.7 5.1 5.4 3.5 10.7 19.6 7.8 12 53 n Iharl F>"* 3.2 1.9 3.1 0.0 0Q0 3.1 1.4 (3) (261) Ibninh. T 10.1 5.9 2.7 1.3 3.2 7.2 2.5 (29) (5PO MbnE">3 gnt 9.5 5.6 2.9 2.0 1.3 6.2 2.3 (35) (591 b_a_L 302.0 177.5 95.7 90.7 19B.2 3N8.6 13.6 27 (231 I/ hrn1.b Zpi1,- GmUar. ~/ Iarhu~ wis drJiiz M, pm1. u d wall Iuus. b'iubshc11.9 -,IIIii m of tu_ ws sdicn jw1au.y U ItndI aia_ orf md x =au. ;f Nmnbcs 13.3 ya far eo3ditaou plk ytUlat dwirb tbi ex of 1987. / Indabes 3.8 .IIiUaU yn fereslldbmn plu3 db g t3bt gnudzr of 16?. l~~~~~v I! oW  ~ 59 U TabLe 7 CHINA OIIA PLAIN NORTh PROUECT AORIWCTURE (Cr.1261-CHM) Allocation of Credit Proceeds jJ As gr Revis1ons Actual / Cateoort Disbursement OCA £ y Aoril 1987 I Disburs nits Undisbursed ................ ...... .... (SRmlin ............................ (S*l5n 1. civil Wors 16.06 (29.8) 16.06 16.33 (30.2) 16.30 0.03 Chaicals 19.77 (36.6) 19.77 2. Agricultural 20.40 (37.6) 19.41 0.99 3. Pts ad Wotors 5.39 (10.0) 2.08 2.35 (4.4) 2.20 0.15 4. Other Euipment & Goods 8.90 (16.5) 12.40 14.52 (26.9) 11.61 2.91 S. Studies. Consultants' Services & Training 1.60 (3.3) 0.80 0.40 (0-7) 0.05 0.3S 6. Unallocation 2.06 (3.8) 2.06 - (0) - - 7. Specal Account - - - - O.5 4O.50' Total S4.00 (100.0) S4.00 S4.00 (100.0) S0.09 3.91 A/ at 9 Noveber 1987. Credit closes an 31 Oeceb r 1987, and has notyet befm As fully disbursed.  - 60 - Table 81 X A *BI JJ Bll~RXl Ii R@ERR5 4|l iI i 1 I '.BR|E II~~1 h~N iwii X ts!lgjl0X i'U  _ 61. - Table9 CHINA NORTHCHINA AGR'CULTURE PLAIN PROJECT 1261--CHA)- (Cr. SoilandWaterStudy- Sampling and Analysis Statistics Study Activity. ANHUI HENAN SHANDONG Studies SoilFertility Nunber Points of Observation (sites) 80 93 739 2/ Sampling (per Frequency year) 1-2 1-2 1-2 Number of Analyses Out 1/. Carried >2,000 3,115 6,321 Monitoring SoilSalinity/Alkalinity Number Points of Sampling - 90 73 SamplingFrequency(peryear) _ 8 2 3/ TotalNumberof Analyses1/ - 9,500 7,400 Studies Groundwater Numberof Observation Wells 190 157 258 SamplingFrequency(peryearper well)of - WaterDepth 70 70 70 - WaterQuality n.a. 2 70 4/ - WaterTemperature n.a. 7 70 _/ 1/ Overa 3-year results period; weremapped as soilmaps. !i Thereof657 established underthe project. l/ monthly In 6 sites samples weretaken. _/ In 1984,later reduced.  - 62 - Table 10 CHINA PROJECT NORTHCHINAPLAINAGRICULTURE (Cr. 1261-CHA) Anhui Project Area: Chanqes in Waterloaged Area in Relation to Expanslon of Irrigationand Drainaqe Facilities Item Unit 1982 1983 1984 1985 1986 1987 - e - - - - (Provs1Tonal) Project Precipitation y/ Annual m 789 898 1,078 984 533 July-September m 396 486 678 556 268 - TotalArable '000ha 45.6 45.6 45.6 45.6 45.6 45.6 Land g/ Irrigated Area '000ha 7.2 9.0 12.1 17.3 33.3 34.5 In percent of X 16 20 27 38 73 76 Arable Land Incremental % 0 4 11 22 57 60 DrainedArea '000ha 13.6 3/ 18.7 26.8 33.1 37.2 41.0 In percentof % 30 1/ 41 59 73 82 90 ArabieLand Incremental % 0 11 29 43 52 .60 Waterlogged '000ha 29.9 26.7 17.3 6.5 0 4/ 0 Area In percentof % 66 59 38 14 0 0 Arableland Rate of Decrease % 0 7 28 52 66 66 5/ 1/ GuoyangCountyStation. Long-term mean a 83/mm. E/ Includingforest,orchards and reclaimable wasteland. a/ Missionestimate on pre-project drainageeffectof existing drainage infrastructure. V Becauseof low rainfallin 1986 and 1987 all waterlogging was (temporarily)eliminated beforecompletion of the drainagesystem. j/ Cultivatedcrop land - 41,400ha (Table13) is 100% dewaterlogged".  - 63 - Table 11 Page 1 CHINA PROJECT NORTHCHINAPLAINAGRICULTURE (Cr.12-61-CHA) HenanProvince levels ProJectArea: Chan9es_n SalinitylAlkalinity In Relation of Irriation and Drainage to Expansion Facilities { Item Unit 1982 1983 1984 1985 1986 1987 1988 1/ |Pie- (Proal1Tonal) P-ro3ect E ?j ~~Precipitation P iAnnual m- 711 569 863 859 418 - - m July-September 471 220 559 490 271 - TotalArable Land3/ '000ha 57.1 57.1 57.1 57.1 57.1 57.1 57.1 IrrigatedArea '000ha 16.9 19.6 24.2 27.7 35.5 38.6 40.4 In percentof Arable Land X 30 34 42 49 62 68 71 Incremental X - 4 12 19 32 38 41 DrainedArea4/ '000ha 18.1 21.7 27.4 36.5 42.8 48.0 48.0 In percentof ArableLand X 32 38 48 64 75 84 84&/ Incremental X - 6 16 32 43 52 52 Saline/Alkaline Land ]. Light '000ha 7.6 5.3 4.5 3.0 Medium '000ha 4.6 4.1 0.9 0.5 Heavy '000ha 3.9 2.6 1.6 1.2 Reclaimable Wasteland '000ha 5.5 3.3 1.5 0.5 Sub-Total '000h.a 21.6 15.3 8.5 5.2 Land) (Affected Affected Land in percent of Arable Land X 38 27 15 9 AffectedLand Reclaimed X - 29 61 76 overleaf. Footnotes  - 64 - Table 11 Page 2 1/ Projections basedon recordedtrendsby countryPMOs. i/ ShangqiuPrefecture meana 674 m. data; long-term ]/ Including forest,orchards wasteland. and reclaimable 4/ Horizontal(open)drainagesystemssupported by verticaldrainage throughtubewellsfor irrigation. O/ According to standardclassification used in China: a Light salt content 0.1 - 0.3 % b edium salt content 0.3 - 0.6 % c Heavy salt content 0.6 - above y/ Remaining 16% do not requiredrainage.  - 65 - Table 12 Page I CHINA NORTHCHINA PLAINAGRICULTURE PROJECT (Cr. 1261-CHIA) ShandongProvinceProjectArea: Chanaesin Salinity/Alkali nit Levels in Relationto Expansion of Irrigationand DrainageFacilities Item Unit 1982 1983 1984 1985 1986 1987 1/ P-re- -- (ProvisionaT) PFroect Precipitation?j Annual m 481 S10 681 494 263 - July-September mm 307 257 448 271 138 TotalArable LandJ/ 000 ha 102.3 102.3 102.3 102.3 102.3 102.3 IrrigatedArea / '00Oha 50.1 57.5 64.2 73.3 78.7 80.0 In percentof Arable Land X 49 56 63 72 77 .78 Incremental A - 7 14 23 28 29 Dra1n2dArea / '000ha 31.0 44.0 60.0 80.9 90.1 92.2 In percentof ArableLand X 30 43 59 79 88 90 Incremental X - 13 29 49 58 60 Saline/Alkaline Land6/ Light '0C3ha 16.9 14.5 13.5 8.1 6.3 4.1 Medium "JOOha 19.5 18.8 13.8 7.3 3.8 3.0 Heavy u000ha 6.2 5.2 4.5 2.3 1.7 1.4 Waterlogged Land '000ha 42.9 29.6 23.7 16.1 11.7 8.0 Reclaimable Wasteland '000ha 8.6 8.3 6.8 4.6 2.8 0.9 7/ Sub-Total '000ha 94.1 76.4 62.3 38.4 26.3 17.4 Land) (Affected AffectedLand of in percent ArableLand7/ X 92 75 61 38 27 17 AffectedLand Reclaimed X - 18 34 59 72 82 "'nntnnt - nv rl f  - 66 - TabLe 12 Page 2 1/ Projections basedon available data up to mid 1987. 7/ Source: Yucheng County records; Long-term mean a 599 m If Including forest, orchards and reclaimable wasteland. !i Irrigation by gravity flow from YellowRiver,pumpingfrom surface sources and tubewells. I Predominantly horizontal drainage with largespacingof sub-laterals and limited field drain coverage. 6/ According to standard classification used in China. 7/ As waterlogged areasdo overlapconsiderably with otherwise affected areas the sub-total appears largerthan in reality. Drought prone areas, although substantial, are not accounted for here.  NORTH MN PLAI ABRuiiUL? PROJECT (Cr. 1261-CHM) Land Use - AOera1Sal Pro1ictign and Actusl Changes £rmnrnj*G Pro £gaan Completo aec eU*DUfl Letup * 1 I 198IUS (42197o9) (1987) (pre-project) (provisional) (' h)...... ..... ('000 hc) .................. . ........... Tot-l Prolct Areas 1. Cultivated Crop Land - Irrigated * 71.0 153.0 74.2 86.1 100.5 118.2 147.S 153.1 - Rainfed 107.0 29.0 103.0 92.2 77.2 59.9 32.? 27.4 (Total) (178.0) (182.0) (177.2) (178.3) (177.7) (179.1) (180.2) (160.5) 2. Forests/Orchards 7.0 22.0 13.5 10.8 2Z 13.1 2V 14.5 V 13.5 2' It IS.3 2' 3. Reclaimable Waste Land 25.0 - 14.3 13.3 10.2 6.7 4.3 1.7 4. Lo-s of Area j - E.O _.0 2.6 4.0 5.. 7.0 __1.5 Total: 210.0 210.0 . ........................... 205.0 ............................... Protect Areas by Province Anhui 1. Cultivated Land Crop - Irrigated 14.0 n.a. 7.2 9.0 12.1 17.3 33.3 34.S - Rainfed 26.0 n.-. 3S.2 33.4 29.3 24.1 0.1 6.9 2. Forests2Orchards n.s. n.a. 3.0 2.9 2/ 3.8 VJ 3.7 2/ 3.7 I/ 3.7 2' 3. Reclaimable Waste Land n.s. n.s. 0.2 0.1 0.1 - - - - 4. Loss of Area I/ n.a. n.m. - - -.. 3 O..OS 0.5 --9 S Total: n.a. n.a. . . . . .45.6 ............................... 1. Cultivated Crop Land - Irrigated 18.0 n.a. 16.9 19.6 24.2 27.7 3S.5 38.6 - Rainfed 30.0 . n.a. 33.2 30.8 26.6 23.7 16.4 13.9 2. Forests/Orchards n.a. n.a. 1.S 1.7 V8 2.0 V/ 3.1 I/ 3.0 2V 3.0 2' 3. Reclaimable Waste Land n.a. n.a. 5.5 4.9 3.3 2.1 1.5 0.8 4. Lose of Area 1i n.s. n.a._ - . .2 °..L O.S 0.7 0...8. Total: n.a. n.a. . . . . 57.. 5 ............................... Sh5dona 1. Cultivated Crop Land - Irrigated 39.0 n.s. 50.1 57.5 84.2 73.2 78.7 80.0 - Rainfed 51.0 n-a. 34.6 28.0 21.3 12.1 8.2 6.6 2. Forests/Orchsrds n.a. n.e. 9.0 6.2 V/ 6.5 VJ 7.7 2' 6.8 V/ I 8.6 2' 3. Reclaimable Waste Land n.a. n.a. 8.6 0.3 6.8 4.6 2.8 0.9 4. Loss of Area 1/ n.-. n.a. -. 3...3 4.7 .. 5.8 6.2 Total: n.a. n.s. . . .......... 102.3 Sojucgt SAR and County and Provincial PHOs. J Loss of area due to project works: loss of area In Anhui and Henan appears to be lon when compared with total length of canals and roads constructed. Reason for this inexplicable. 21 Estimated: Total area less I + 3 4 4. Total area of forests/orchards reported by PROs amounts to about 38.000 he. as the area Is estimated on the basis of a certain norm (nos. of trees per ha) and Includes trees planted along canal banks. roadside and field bunds. Some trees are also planted in the field for 1ntercropping. 3/ Smaller area than previous year inexplicablOe.  Croone Intmnsity Area.&Arooina n Ac-tual - AutgriHulProjectison ProdutIft! ano !khkImIS PFF17FiT~11737 3P - - trr- I * * *** * 1.** 9 * *1 *P ! INA s aIla M M m UK ;EW d km..........................................................................i l .............................. $ - ......... ... .. S..*O I eat 92.6 93. 97.394.2 9.6113.9111.9 25.9 27.2 29.2 29.3 27.9 26.6 31.3 31.7 32.Z 34.3 34.9 36.7 V 40.4 49.7 Ibite 49.0 4.3 41.7 44,2 36.9 9.7 47.3 0.3 1.4 1.4 1.9 4.2 11.7 14.6 11.5 12.1 13.4 29.7 29.8 25. 25$1 29.7 oltw Caral S-t ?ftut$ 13.8 23.8 13.9 15.3 136 12.0 11.4 131. 11.1 3.7 2S 21.7 21.7 18.519.5 21 J: .1 5 ' 13.3 12.9 1 . 12 1 . 6:1 4. *. 4 0 3.4 4.1 4. 5. 59 I. 1.1 . 1.2 Seiko 24.1 25.1 26.9 26.7 25.9 25.1 2. 12.8 13.2 1 . tS.6 11.1 .4 7 7 5 Rap 2.7 'i.? 4.3 1.2 0.9 2.5 2.9 2.9 1.9 6.6 2.3 2.4 1.4 6.3 6.3 1.2 0.5 - - - - 9. 3.2 3.1 4.1 6.5 5 3 9 1 . 1212 1. 9 S 1.3 1.2 3.1 l.9 aGrondnt Seu 4.3 2.5 3.7 3.8 3.2 4.1 4.9 5.7 2.6 21I 2:1 3:3 4.4 1.2 i1 - 1.1 - 11. : : Cotton 26.8 32.7 43.7 47.1 55.8 43.3 41.3 3.1 3.2 4.2 2.7 2.3 6.2 8.e13.2 11.9 9.5 34.4 35.9 38.4 29.7 28.9 lout S olbrs 3.8 4.2 9.8 12.9 14.4 17.9 19.7 1.1 2.3 3.2 5.5 4.9 3.5 4.4 5.7 3.7 6.8 5.2 6.2 5.5 8.7 9.l TotalCrWd Area 245.3 253.3 256.5266.3 2.1 2.M 293.9 67.3 67. 73.3 73.9 77.0 73.3 78.6 6.98 Bt.9 96.3 116.2121.7 119.119.2 136.9 NIt CIllttytedArea 178.1 182.1 177.2178.3 177.7 178.1 181.1 42.4 42.4 41.4 41.4 41.4 56.1 53.4 51.8 51.4 51.9 89.7 85.5 SS.565.3 86.9 Criopiug Intensitp (Z) 138 131 145 149 152 154 163 158 158 173 178 196 146 156 159 159 165 137 141 139 141 150 Prd tim ................. I.................................................... (sl os ......... ... ......... ........ ......... Cereals U 253.5 30.2 395.1521.91 9.1 623.5 713.4 63.6 73.5 98.1126.6 142.4 167.1176.4 171.6 199.1 214.4 214.5272.1 29A 299.4 356.6 Polito Sweet 61.6 66.9 71.2 7.6 93.4 93.9 166.8 46.651.4 63.1t54.9 79.1 17.721.1 14.9 22 7 22.7 6.9 6. 5. 1.3 6,3 Sean 21.7 34.3 27.9 32. 26832.6 39.5 12.9 162 8.6 112 11. 7.9 2 .9 12.2 13.27 .1 7 9. 3.6 14.5 Oiseedt 6.7 3.5 8.8 3 11. 23.9 26.8 5.0 4.5 5.1 9.7 16.1 3.3 .1 5.9 5.7 9. 3. .5 1. Cotton 13.6 73.7 33.? S1.S67.7 43.9 43.7 1.2 1.9 3.1 1.6 1.7 4.1 7.3 11.6 9.6 8.7 27.9 42.3 53.0 32.7 33.3 SjpMg SO ndCount, and ProincialPIs. M 1/ AFprasal on1979; pre-projet is based SAEdoes by cootl/provinte not givebreakdeon proect rea. 2/ Fell wl yar projected Ipoent in SAis1991; M. doessetgive bI cunty/prOoi hreakdoAn ce projectarea. A/ rtsl rep ertyear. VI IclKIes iseat, suize, andotbercereal. c 5/ InIoos rape, gronntet andsesaue. . cr  frscin Total jiislAreas iuis- sanPAtul chginut Atoy?m kol AuMraw) (Wusbedl Actuel liu r 1sa zi 9si Me s1 . ..... .' . . 5A ............ ......... .... (t0 (4...... ...... ...... . {W} .~~~~~~~~........ .. ... tl^)...... 2.5 3.4 3.7 4.2 4.3 2.2 2.3 2.9 3.0 4.6 2.3 3.7 3.9 4.2 4.6 2.9 3.9 4.1 4.4 ' at 1.4 1.6 2.2 3.2 4.1 4.2 4.4 3.9 3.6 4.2 4.6 4.1 ' 1S ?.t 2.3 2.9 3.5 3.9 4.4 4.2 4.2 2.1 2.4 3.1 2.9 3.4 II 2.9 2.9 4.3 5.8 6.1 6.1 5.4 5.9 5.9 b.1 6.1 5.4 5.9 - - - 1.4 2.9 3.5 2.9 or CuruI 6.9 t.9 1.9 1.2 1.9 2.3 21 2.0 1.6 1.1 1.9 1.2 1.5 1.3 1.5 1.3 1.5 1.3 3.2 39 4.3 .1 3.5 1 t 4.9 4.6 . 2. 3. 3.9 3.9 37 4 4.4 4.3 It Petate 4.4 1.4 I0.4 1.0 6.9 1.1 1.3 1.9 1 I.1 1.2 1.4 t18 1.7 1 .41 .3 1 2.3 2.1 1.2 - I 1.2 1.8 1.8 2.2 1.1 1.S 1 2.2.1 82. 2.5 I zndnut 1.1 1.1 1.8 1.2 1.7 C? 2.4 21 - ausbilIsi) 6.4 6.6 6.9 1.9 1.7 6.4 0.6 6.5 6.5 0.6 - - - - e 3.4 6.4 1.9 1.4 0.6 1.7 6.7 1.7 1.7 1.9 6.9 6.0 .9 0.8 1.2 1.4 1.1 1 too(lint) 0.5 1.5 1.7 1.8 1.1 1.2 1.0 1.1 0.4 1.6 1.7 0.6 6.8 3.6 2.4 2.5 2.5 1.4 1.5 1.9 2.6 1.9 1.4 2.1 1.9 2.6 1.7 1.7 2.1 1.5 6.5 6.7 1.3 1.3 1.3 itf 2: SO ad C"nty ad Provincial fP1k. Smies sot givebraldoma byrot!prouiKce projeCt area. in ;9 is 1M91. yearprojected Full deuelopemnt ktIwl OrrojeT year. in Anhiad Shandn project arers ae itlplicSble.* 5 ye#rs ever (192) ad irreglar annual Niqorfield in pe-plroject lield deuelopent II  - 70 - Table 16 CHINA NORTHCHINAPLAINAGRICULTURE PROJECT (Cr.1Z61-CHA) Anhui- Per HectareCost of Crop Production 1/ PhysicalInouts TotalCost Per Ha 2/ Seed Fertilizers Labor Financial EconomTc (kg) ..- (kg) .. (man-days) ..... (Yuan..... Wheat -P 3/ 180 75 35 185 369 925 -MO 3J 180 80 40 200 398 989 -W37 160 110 50 260 552 1,295 Naize -P 50 40 - 150 138 512 -Wo 50 60 S 165 185 605 -W 50 80 20 185 303 777 Paddy - P 50 120 45 230 401 1,051 - No 50 125 45 230 410 1,063 -w 50 130 50 230 436 1,096 other cereal - P 35 20. 8 150 100 421 - MD 35 20 8 150 100 421 -W 30 25 10 165 133 48Ez Sweet potato - P 250 30 15 180 225 580 -Wo 250 35 20 185 243 612 -w 250 70 50 230 419 914 Soybean - P 75 5 10 115 121 366 -Wo 75 10 20 120 168 434 -w 75 12 20 125 173 452 Rape -p 10 30 10 130 120 401 -Wo 10 30 12 135 124 415 -W 10 60 40 150 261 606 Groundnut - P 225 25 30 225 407 957 -Wo 225 25 30 230 422 983 -W 225 60 60 275 559 1,241 Sesme - P 10 10 - 107 69 297 -Wo 10 10 5 I11 81 316 -w 10 15 8 165 105 464 Cotton - P 100 45 10 245 622 968 -Wo 100 50 20 355 661 1.029 -w 100 70 35 405 776 1,280 Kenaf -P 30 60 5 170 218 634 - WC 30 70 5 185 250 708 -W 30 80 20 195 310 799 1 Estimated based on dataprovided by county PMOs. X Includes also costs of agro-chemicals and land preparation (draught powerand mechanization).  - 71 _ Table17 CHINA NORTH PLAIN CHINA PROJECT AGRICULTURE (Cr.1261-CHA) Henan- PerHectare Cost 1/ of CropProduction Inputs Physical CostPer Ha 2f Total Seed Fertilizers Labour FinancialEconom (kg) * (kg) * (man-days) ..... (Yuan) Wheat -P I50 75 35 190 330 882 - o 3/ 150 80 35 235 355 1,034 - Wg 145 120 60 290 606 1,429 Maize -P 55 75 10 175 235 697 -Ho 55 80 20 195 268 777 -W 45 130 40 220 468 1,077 Other cereal - P 30 30 10 160 127 498 - wo 30 30 10 160 127 498 -w 30 35 15 165 158 546- Sweetpotato - P 225 25 10 150 180 683 -Ho 225 25 15 150 188 692 -w 225 50 20 200 296 927 Soybean - P 65 5 10 114 124 379 - wo 65 10 15 115 141 404 -W 70 15 30 130 212 521 Rape - P 8 15 5 100 73 285 - Wo 8 15 7 115 84 317 -W 8 100 70 185 401 868 Groundnut - P 200 25 30 220 405 875 - Wo 200 30 35 225 433 920 -W 200 60 50 280 538 1,169 Sesame -P 8 10 - 107 63 286 - Wo 8 10 5 110 75 305 -W 8 15 5 160 89 426 Cotton - P 110 70 30 380 655 1,233 - wo 110 70 35 395 673 1,283 - W 110 120 60 420 840 1,565 Kenaf -P 20 25 - 100 108 327 - Wo 20 35 - 120 137 406 - W 25 60 5 175 237 646 1 Estimatedbasedon data provided by county PMOs. i Includes also costs of agro-chemicalsand land preparation (draught sowerand mechanization). p VI _ "_^rnE, UA - *s4+.,o+ w4+hfuI%Vunr #-+- W a fItioro with' nrI1vet.  - 72 - Table 18 CHINA PROJECT NORTHCHINAPLAINAGRICULTURE (Cr.1261-CHA) Shandona- Per HectareCost of Crop Production 1/ Physical Inputs Total Cost Per Ha 2/ Seed Fertilizers Labour Financial .EconomTc N P (kg) (kg) .. (man-days) (Yuan) Wheat - P/ 160 80 35 200 370 953 - Wo 3 160 100 50 240 480 1,175 - W3 150 125 60 285 621 1,439 Maize - P 48 85 30 185 282 793 - Wo 48 125 40 215 434 1,066 -W 48 130 40 220 481 1,092 Othercereal- P 25 35 25 165 169 535 - Wo 25 40 25 180 187 600 -w 25 50 30 200 231 693 Sweetpotato- P 250 35 20 180 217 599 - Wo 250- 50 30 195 282 713 -w 250 60 40 230 350 858 Soybean - P 75 5 10 120 133 386 - Wo 75 12 20 125 180 456 -W 80 15 30 135 355 525 Groundnut - P 200 45 35 260 474 1,090 - Wo 200 50 40 270 499 1,141 -W 210 70 60 300 599 1,329 Cotton - P 80 70 35 390 586 1,188 - Wo 80 75 45 410 620 1,266 - W 90 130 65 425 816 1,531 Kenaf - P 23 80 15 190 278 759 - Wo 23 100 20 210 329 872 - W 25 110 30 220 377 954 1/ Estimatedbased on data providedby countyPMOs. i Includesalso costsof agro-chemicals and landpreparation (draught powerand mechanization). 3/ P * present;Wo a futurewithoutproject; W a futurewith project.  NORtH CHINA PLAIN AGRICULTURE PROJQECTT (Cr. 1261-CHA) In Tree Plantina (unitIhaeLartI lt Financial Budaet Borders I IntercroRDlal A/ Unit Forasi Orchard 6-30 1-10 1-10 years 1-10 11-20 1-5 e e0 .... 300 ... 75 No. ... 1.500 ... amber of trees per ha 0.3 0.3 - - - m3 1.2 . S.O . 15.0 Lu4mberin Lumber os. 0.4 0.5 4.0 -4 - 4/ 2.5 Fruet dtons 90 360 1.500 - -90 Lumer (V300/m3) Yuan Yuan t Fruit (VGOO/ton) Firewood CYSo/ton) yuanni24 114 120 ilO 1.740 - 9.000 Totals - 8.3 7.9 O.yuan 60-30 3-A SA-alIIngS 60 -S- Management costs yuan 11.4 11.3 68 14 210 600 Total5 102.6 100.7 442 1.726 -210 8.400 eLtVaID-L yuan 23 i5 15 300 450 0m-dbys 60 Abour on data provided by countY PMOs, y Estimated based as a representative fruit tree. / Used apple trees II* es a representative tree. I Used Paulonis Oranches B prunod ewcluded. ,, ~~~~~~~~~~~  C"INA MNOTH CHINA PLAINA ARCULTURE PRO.JEC ( cr*. l261- CHA) Anhu12 croppeD Area. aieldand Pro4uction U_sd for Analwsis .1/ V A/ '-Proict 11962l Future Without Prolect Futurs With Prolect ~Yeld Production fEnmg (AlEid Produt on £LLSaU ts1 d Prida con £Cmnu~ (tons/"a) (tons) Ar (tons/ha) (tons) a (tons/he) (tons) aM (he) (he) (ha) 2.2 S6.760 25.800 2.6 67.080 29.000 4.0 116.000 Wheat 25.000 15.750 2.0 600 300 2.4 720 4,500 3.5 Naito 300 15'000 SOO 8.6 2.900 SOO s.0 2.950 2.500 6.0 Paddy 1.5 5.250 3.700 1.0 3,t00 3.700 1.0 3.700 3.500 Other Cereal 13,000 5.5 71,500 13.300 3.5 46,550 13,300 3.8 50.540 Sweet potato 16.640 10.000 1.4 14.000 Soybean 12.e00 1.0 12.800 12.800 1.3 2.900 2.900 1.1 3.100 2.500 1.9 4.500 Rape 2.900 1.0 1.080 900 I.S 1,350 1.500 2.3 3.4S5 Groundnut (unshelled) 900 1.2 3.150 0.4 1.040 2.600 0.5 1.300 3.500 0.9 Sesame 2.600 2.000 i 0.4 1.240 3.100 0.5 1.550 2.500 0.8 Cottonl (flt) 3.100 9.000 > 1.5 1,660 1.100 17 1.870 S.000 1.6 None? &/ 1.100 67.000 67.000 77.500 Total Cropped Area 42.400 42.400 41.400 Not Cultivated Area 158 167 Cropping Intensity (S) 156 (1992) cropping pDttern and yield (see Tables 14 and 15). 1J Based an actual pro-project based on based on SAP assumptiont no change In cropping pattern from pre-project% crop yield 2J Mission estimate for 1982 and 1983 "ith increase in future based on assumption similar to SAN averages data changes In cropping pattern and yield in projectinon-project areas. and J1 Missian estimate based on past S yesrs provided by county PMOa for future projection. _/ Includes other miscellaneous crops. &  CHINA NORTH CHINA PLAlh AGRICULTURE PROJECT (Cr. 1261-dA) Ar, Yiald *nd Preduct10n aUsd n An.lY-1s Hanans Ciooned A1/ / 1/ Futura Without Pro1-ct Future With Proiect Pra-Prolect (19821 ProdMctn on stgama Vfi e1-d Pr2d" atn Crono-d Yield Crooo-d Yield Prodc (tont 'a) (tons) (tons) Arma (tons/ha) (tons) Arms Arsa (tons/ha) (ha) (he) (ha) 26.600 3.4 8.840 35.000 4.5 157S.00 Whoet 26.600 2.3 61.180 4.5 05.250 11.700 3.2 37,440 11.700 3.9 45.630 14,500 1inse 5,800 1.4 8.120 3.SOO 1.5 S.250 Other Cereal 5.800 1.3 7.540 4.0 24.000 2.7 17.820 6.600 3.0 19.800 6.000 Sweet potato 6,600 ?.500 1.7 12,750 t 8.400 0.9 7,S80 8.400 1.2 10.080 Soybean 1.400 0.5 700 1.000 2.6 2.800 ., Rope 1.400- 0.4 560 S 7.500 2.090 1.900 1.3 2.470 3.000 2.5 Groundnut (unshelled) 1.900 1.1 1.500 0.8 1 200 0.4 480 1,200 0.5 600 Sesame 1.200 4.960 10t000 1.0 10000 6.200 0.7 4.340 6.200 0.8 Cotton (lint) 3.500 0.7 2.450 5.000 1.5 7.500 Kenaf 4/ 3.500 0.5 t.750 73.300 87.000 Total Cropped Area 73,300 S1.900 Net Cultivoted Area 50.100 50.100 146 167 Cropping Intensity (S) 148 1I Based on actual pro-project (1902) cropping pattern and yield (-ai Tables 14 and IS). pattern from pro-projects crop yield based on Z/ Nission estimate based on SAR assumption, no change In cropping assumption similar to SAR. average for 1982 and 1983 with Increase In future based on and `yetd In projectlnon-project areas. and data p/ Mission estimate based on past 5 years' changes In cropping pattern, provided by county PNOs for future projection. -4 Includes other miscellaneous crops. Iob  MONTH CHINA PL!ftI AOffICULfURR PROJECT (Cr. 1261-CHA) Shandong, Croood Aram Vield and Prun ctinn Used for nalsivs Future Without Pro1-oct Futurs With Project P---Pro iect t19821 ProulctJan Produet0 Pr LLUU13 IW don ±i*d Croooed Vt-ld Cropped V1-ld (tonu no) (tons) EAr- (tons/ha) (tons) tha (tonse/ (tonc) (ha) (ha) (ha) 34,900 3.8 132,620 50,000 4.S 22S,000 Wheat 34,900 2.8 97,720 4.5 135.000 3.6 106,920 29.700 4.3 127.710 30.000 M8izt 29,700 60000 3.0 18.000 4.100 1.4 5.740 4.100 2.2 9.020 Other Cereat 1.800 4.0 7.200 1.500 4.5 6.750 Sweet potato 1.800 3.7 6,660 1.7 14.450 1.2 6,840 5.?00 1.5 8,550 6,500 Soybean 5.700 920 2,000 3.0 6.000 400 2.0 800 400 2.3 Groundnut (unshelled) 34,400 1.0 34,400 30.000 1.2 35,000 Cotton (firt) 34,400 0.8 27,520 2.S 22,500 1 1.8 9.360 5.200 2.2 11,440 9.000 Kenaf A/ 5.200 137,000 c- Total Cropped Area 118.200 116.200 84.700 86.600I et Cultivated Area 84.700 158 137 137 Cropping Intensity (S) ts-- Tables 14 and 15). 1l lamed on actual pro-project (1982) cropping pattern and yield 2I Mission estimate based on SAR assumptions no change In Cropping pattern from pro-projects crop yield based on similar to SAP. average for 19S2 and 1983 with increase In future based on assumption and yield in project/non-project areas, and data I/ `ission estimate based on past S years' changes In cropping pattern provided by county PUOs for future projection. 41 Includes other miscellaneous crops. I;  CHITA (Cr. 126-CHA) Oudg-t for an Avareq- .7 hn Holding Anhui - Farm Futura With Protetrt Pra-Pratact mi' fuure- 1w Without* p-oect YlRAE Coduction flf y"0/ I Sfonnn3 P.r8Lfl. LU 1/ Value cngdduticALn (Yuan) w (kg) (Vusn) E -(kg) (Yuan) (kg) AB (a (ha) (ih") v. Valuo ot Croa Productign 2,000 960 924 443 0.42 1.092 524 - 0.50 0.08 280 99 Wheat 0.42 -- - 300 104 - - 59 2t 0.05 Noise 20 0.01 Paddy 0.01 58 la 0.05 75 2 439 ~~~~~~50 to 0.0S so 950 34 0.22 1.210 Paddy 0.635 875 318 0.25 238 173 Other cereal 0.25 189 0.17 145 0.20 260 0 20 200 0.12 276 260 Soybecnp 0.10 ISO 141 0.10 120 113 0.04 32 125 Oi)seed 31 0.0S 30 117 0.05 20 78 Cotton (1nt) 2O9 0 2,319 * Kenaf 1.11 1.401 1.31 l.ll 1.191 laiD.).? (158%) 187%I (Cropping Intensity) (l58S) 12.14 2.104 2. Product10n n Cost / 1,047 1,746 658 3. Net Croo Income 4/ -_0 4. Income from Tree Croos / la820 1l047 858 S. Total 3 and 4 18 16 io 1 6. LRn.IIAA I 02i1.2 7. Net Far. aIQ Income Table 20. I/ Crop yields are given 1n was uaad as the representative ollseed crop 2J tnel.adifn groundout, rape and sesawmt groundnut | 3/ see Table 16. net Income from trees planted In field borders and intercropping. 41 See Table 19. Average of Pi _ _~~~~~~~~~~~~~~~  CHIMA MORTH CHINA PLAIN AGRICULTURE PROJECt (Cr. 1261-CHA) Hen-n - FarrJEudnetLCr *n Averame 0.7 h- Holdino Pr--Pro -et Future Without Pro -et Future With Pro-ect £rnpeid ! t Vulue fL22g Prnduct1in 1, vaPue 1 a Prouctlion £ rOOD I/ value Area (kg) (Yuan) Ara (khg) (Vuan) Area (kg (Yuan) (ha) (he) (ha) 1. V-lue of Crop Production Wheat 0.40 920 435 0.40 1.980643 0.47 2.115 t,000 dlaze 0.15 480 too 0.15 e58 219 0.19 855 321 Other cereel 0.07 90 36 0.07 98 40 0.05 75 30 Sweet potato 0.10 270 92 0.10 300 102 0.08 320 109 Soybean 0.10 90 69 0.10 120 92 0.10 170 131 011O,eed r O5B5 008 53 0.05 65 62 0.08 200 191 Cotton (lint) 0.10 70 223 0.10 80 254 0.13 130 413 1 Kenaf 0i. 25 30 O OS 35 42 I 0 105 __1 . Total: 1.02 1.118 1.02 1.454 1.17 2.321 1 tCropping tntensity) (146%) (;46%) (167%) 2. Production Cost _J/ lu us 5sL 3. Net Crop Income 11 864 1.179 1.786 4. Income fram Tree Croon 74 5. Total 3 and 4 864 1 179 1.712 . Less Taxes 16 la is 7. Net Form Income am 1.161 1_694 jI Crop yields are giwen in Table 21. 2 Including groundnut, rope and sesames groundnut was used as the representative ollseed crop. at See Table 17. 41 Sea Table 19. Average of net income from trees planted in field borders and intorcropping. F  CHIN NORTH CI£NA PLIhN AORICULTURE PROJECT (Cr. 1261-CHA) Shandena - r - .n 6udeet for *n Avarapa 0 7 ha Noldina future Without Pro-Lct _utura With Prolact Pra-Protelt Crooo daProduct1in1 Value £roanad Produ&JImn I1 Value £ u Prod n IL -l.u toa it (Yuan) Aeam (kg) (Vuan) Are (kg) (gu)n Area (kg) (he) (he) (ha) 1. VMJuJ of Crop Production 419 0.30 1.140 569 0.40 1.800 899 Wheat 0.30 840 401 900 369 0.25 1,075 441 0.25 1,125 "a :t 0.25 OOS ISO 63 0.03 42 16 0.03 66 26 Other cereal 75 59 0.10 170 134 Soybean 0.05 60 47 OOS 741 0.28 280 926 0.25 300 992 Cottn (lint) 0.26 224 Kenafgi 90 fl as 110 ..... Q Q.J3 15014 1.6B0 0.96 2.128 1.11 2.691 Totals 0.96 1137%) (137%) (16$%) (Cropping Intensity) 843 2. Production Cost 2j 1 329 1.670 2.048 3. Nat Crop Income 74 4. Income from Tree Crops a' 1.308 1.670 2.122 5. Total 3 ind 4 Is le is e. Less taxea 1I29 1e522 104 7 MLt Fuaa.J ncm iJ Crop yields are given In Table 22. 27 Sea Table 18. and intercropping. a/ See Table 19. Average of net income from trees planted in field borders Nr  - 80 - TabLe 26 Page I PLAIN IlORTH rInlA AOUCULTE RE CT (Cr. 12CM) 0" Costswith ad without Project Itm unit cost autits Total? Ouatit Total r ThM With Project.. ... .... Vithout Project.. mm ~~~~(or pctl .'OV.............. .................... Ni.. & Branc Orains 4.0 41.0 ha 164.0 41.0 hb 164.0 Laterals * Smo-Laterals 4.5 41.0 ha 185.0 - - O-fa. drains 2.0 35.0 he 70.0 - Ped Irriation 110 21.0 ba 2,310.0 1.0 ha 110.0 Tiniill Irrigation 31 200 13.5 he 2,700.0 6.2 ha 1,240.0 ,trctures jy 1.0% 12.00.0 r 125.0 2,900.0 v 23.0 bral Roads 2.0% 3,100.0r 62.0 - - bral Electrfication 1.0% 5.s0.0 v 55.0 1,100.0? 11.0 Total - - s567n.0 - 1,554.0 Incr_Netal - - 4,117.0 - - bins & oranch Orains 4.0 92.2 ha 360.0 40.0ha 160.0 Latt.Jls & Sub-Laterals 4.5 92.2 ha 420.0 50.0 ha 23.0 .*-fa. Orainsv 2.0 20.0 ha 40.0 - - P_ed Irrigation 100 4S.6 ha S,016.0 25.9 he 2J.8.0 T*mwll Irrgation 200 27.2 h S,440.0 16.9 he 3.300.0 Oraity Irrigation (YellowRiver) S0 7.2 ha 360.0 7.2 ha 3C0,0 Structuresy 1 30.000 r 300.0 9.500 r 95.0 Rural ELjy 1% 30.000 r 300.0 11.000 r 110.0 Totl - - 12,245.0 - 6,977.0 Incrnntl - - 5,2. -- Nulns& Branc Orains 4.0 48.0 ha 192.0 20.0 ha 80.0 Latwrals& Sub-Laterals 4.5 48.0 ha 216.0 6.0 ha y 27.0 On-fan OrransJ/ 2.0 16.0 ha 32.0 - - Tubeell Irrigation 200 40.4 ha 8,060.0 16.9 ha 3,380.0 Structuresv 1S 20.000 r 200.0 7.000 r 70.0 bral Electrification is 12.000 r 120.0 5,000 r 50.0 Total - 8,840.0 - 3,.07.0 IncrinatAl 5233.0 S- - - on oerleaf.  - 81 - Table 26 Page 2 a/ Includespro-ratedreplacmentcosts as well as all enr andmintenacecosts ftr well, pioset housinganddistribution netwrk. On-famdraimgehs be widely neglected but comitent to iwmoment hes bm made. It is usumedthis will mmrise 255of area. | m of theseafaesis larger then the pre-projet *drain re (Tables10, 11 and12) to allow for thu relatively gremter eFfort of mintenan of lare skeleton drains in relatib to dranaWe effect achieved. It Is necessay I hereto asse a shift frm YellowRiver as a water strce to tuwells. ee in the without project situation in order to create cawarable eoitions. j Includespre-projectbridges. Pr-rated for irrigation.  - ~~~~~ ~~~c himim Cbb t1bU/ I= P n- - I"w3d N X S -- X K X _______l X K IuIn U Cb t 2a/ 180 242 209 no 3M 267/ 1.515 219 21 Feigw-a hmmun l11_me 46 - - - (25) (I5r (OD) 35 3 CIF r M Ob QN v kWtx) 206 32 o SW 9 210 22 1,465 24 1.4 CIF or RE Qiabv (T/tm) 3/ 765 90 415 3 =15 8am 5.413 gm 961 Pat O.ugs Ditars n mm, i 4/ 9t (1053 (61 (M0l (983 (1903 (5123 1W 110 _t:ftft.' W tkV-= S 28 (a) 2132 13 (2B) (131 (1351 2 21 Fau to U.leJw W (2141 (14? (141 (141 (143 (143 (171 14 14 Price at Fau Ia,e 874 7! 302 21 675 6R 4.849 1,17 1., ""mm bsi7 -- - - - Wm - 2D - - - - (10D 1990 EKMtC iPt 874 s5 302 281 675 Gm 4,749 1.C7 1,09B 20 E c Pie 95 613 39D 3 695 677 6.29D 1.097 1.276 V xii " - . motr . N World Bw& Price Projections. Soln 197. nCmcrted at 13.7M - UM /wt Cuwnq ofr YWIm, plus W. dintn*:tm mgin. After applying rail truwxt a stwnd factr of 0.99. ZAri applying td traniat ww3 rimr factr of 0.76. !I P1 e projectd pric o g u oil aid .l, ad _mmIz tist a &m ofr uaduJllU grmuulat yield 0.25 tan of oil ad 0.45 tm of mul.  - 83 - Table 28 CHINA NORTH CHINA PLAIN AGRICULTUREPROJECT (Cr.1261-CHA) Financial and Economic Prices Financial Price Economic Price Anhui 1/ Henan I/ Shandong 2/ 1990 2000 .................... per ton)..(Y output Wheat 480 473 499 874 3/ 935 Paddy 348 - - 506 3/ 613 Corn 355 375 410 302 3/ 350 Sorghum 352 340 399 281 3/ 326 Sweet Potato 363 340 302 335 335 Soybean 725 768 789 675 3/ 695 Groundnut 943 955 1,040 688 3/ 677 Rapeseed 1,000 934 - 585 575 Cotton Lint 3,900 3,180 3,306 4,749 3/ 6,290 Renaf 920 1,200 955 1,000 1,000 Inputs Fertilizer - N 1,580 1,412 - - 4/ 2,300 2,385 - P 1,600 1,667 - 4/ , 1,700 1,994 Labour (Y/manday) 3.5 3.0 3.0 2.0 2.0 l/ Negotiated Prices (averageof 1985 and 1986 prices). 2/ Average of 1985 and 1986 prices (weigh-edaverage of procurement, negotiated and market prices) as provided by the county PMOs. 3/ See table 27. 4/ Financial prices not available. Same prices used as for Henan.  t I ftin CwruuKp alpI, Mmii Ec~slc Privr:s Topr I 2 3 5 S 7 I 9 It H1 12 13 14 is IS V? I 191 28 21 32 23 24 a5 2630 3.9¶3 7.5 2.3 4.1 3.3 **1 .1:1 *3:I3I Ii 1:1 H 0. 1.i 3.31.1 3.1 3.1 Cl1 ae~~1aAt1fi :11. 1:1LI 1:1 '1 '1 t~ !~' .7 9:1 11 I. 1: ij jj :.A : ~,P6.I 1' _______________ 4~1-t 3ii4t. JJii [I ; 1A . Il I.114 2:9I: : : : [I. **' . '*. : 1:11:!i:; iti 0. 1 *.? ' *'1: Iqc-p,ntpl 2I C'ii4. 1.2 1.9 3.3 4.3 4.1 4.1 4.1 4.3 L 4.1 4.1 4 .1 4.1 1.1 4.1 C 4.1 4.1 4.1 4.1 SII 4.1 4.1 4.1 4.1 St3JLf.lK1 .3 U.7 7I.5 94,3 97.5 9P.7 13.3 1II.4 J11.4 111. 131.4 131.4 MA. 131.A131.4131.4 tit * 10g.s 10'.e 139.5 U18.5t:2 s '.n9.51u.5 1u.s 131.5 pait" .3 1.3 1.7 4.1 4.4 44 4.9 4.9 41.3 4.9 4.3 4.9 I S. ? Tij1 4. 4.3 .9 4.9 4. .0 5.6 5.6 5 0 5 0 5.6 ~ ~ s~~~~~~,i ~ .79 31 1: I 1.1 52 ~~~.j &.g h1 '1: ii T't~~~ T T* I I I4.3 1: :j 4 . .1) 47: t. A T I A.1 '' ' . i .; 4:2g5 *'14 n,stotm . :f: s.7. 9 10.5 ~ 2 24.1 24. 3 24.1 24.1 24.0 24.1 24.0 24.13224I,..I 24.6 23.324 ?412- 4.1 24.1 2:- 24,3 2 .5 7,3 11.7 6 3 Sollit-I ~4~it Cott"3f9. 13 1- M 7.9 9.2 9.7 9. 1: 77 I, . :ij3.1 .28g95 9.6 9.4 9.6 9.6 9.6 9.6 9.6 9.6 9.6 9.6 9.6 9.9 9 9 9 9 9 9 9.? 9.? 1. 1.31. . 11.919 1 . 11.9 1.3 1. 1.3 1.3 1.3 1.3 9,5 9.5 9.5 95 .5 .5 1.9 19 1.8'a1.9 6 12.6 5 9.5 I .6 12.6 12.6 12.0 12. 9.9 9.* 1.1 1.9 12.4 -2.I IMI, Eli 'ehcdKtln FSVsPat 6 4. 61.. 7 - 72. 72173:4 1~t19i* 44.1 74.1 41 77 ,A:11 74.1A:7 741 I. .1174. 7.1 4.1 741 117. 75. 197.1 73.7 ~ * 17.i .? . j lal C;q It hwits3.3 -1.6 52. -1.2 55.6 -2 1 79.6 -4.3 5.5 -4.4 53.6 5839.4 -2.5 3.7 5.2 23.6 39.4 1i7 110.114. 93.6 t3g IM i391 121. IN:I t12,10 :1 A0 4 .8 I4 I -- I. 144. 1443 16.9 j1I. 4.2 1434 M*. 14.9 314. 1423t It: 1Q6:; j2.4IQ u 5.6 SM 58.6 50. 30.6 s 6 53.6 59.462 762.7 62.' 62.7 62.7 42.7 62.7 62.7 SobltOl 3.3 4. 7 6.9 di 7 '' .21 : 7.4 I~ ~ 14 7474.4 Ir : : I II 5 * I WA~. ". i *.i I .4 19.1 4 .. s 1 . %4Dt ITHnI P"tU ~ 9 . 49.9 539 395:9.153.9 .9 4: 53.9 3.9 .9 53.9 . 3. .9 53.9 53.9 633 1.3l IA 63.3 I12 63 6.1 63.3, 61. EIT I AM&. -339.4-13.4 3.3 9.7 33/j '34.4 33.9 42.1 46.5 73.3 71.9 93.3 95.5 31.6 73.9 74.4 74.4 79.3 79.3 79.1 739 79.2 77.877.3 77.3 9m1 bt.e of notunv,3  Cirruc? t N11t-:a Ecsn,icAu"I'i - Ursf pro.*-:a Tsar I 2 3 4 5 6 7 * 9 It t2 13 15 I 16 I? ii 1 2. 21 22 23 24-30 Eet_srs Strictu 4.2* 6.3 1.3 2.4 2.6 U 3.5 4.1 3.7 2.7 3.3 i.t 3.1 1.3 3.13,3 0.6 3.3 t1 3I I I J 1 3 .3 3.1 3.0 3.3 6.3 3.1 6.6 3.6 3.6 0.6 .t 6., 3.6 .s .1 I 3. I 9! 1 I.31 1.9 3 .3 3.1 1.6 t iacuur;/!quisnti' i§Sat""iPsttl? ~~K4~ ~~~Irf . 1+|4 1'.} . }-79 5 1. 2.*§ 1 !§ . 3! !! §! 1.1 s} 1, 1:1 !} V t, .1 ii M !5 11 $I ma . I3 I: :1 ii 1:j . I !i - -i . . 11 I Iii '-j:1*.1!III 46 1.4 I 2 1.1 3.ti3 t3.3 6.1 3.6 !5; 31 ii 31 6.1 3i l.5 33 3.3 1 J Ii !3 9.I5 33 Wi l t lRPIC"t 1.7 U 2.L .9 4.5 5.2 &Z 52 S.2 Sj 5.2 5.2 5.2 5.2 5.2 5 .2 5.2 5.2 5.25.2 5.2 . .2 5.2 1.6 -.*7.9 1J1 3.3 1.1 137.5 V37 t37.7 137.? 1X.7 113.2137.79 9 . .6 1, 1.1 ;I)I: 19. 4'.1I 6 59 If. IX.'17.7 13r.7 137 1 1.1 T? I 3t.37. I~ I 7 137.? 37.7 7.3 147 2 9 iS J :~,Mj~ 3 t47.3 147.1 147.3 I4.3 TifI'- a. i I =02 1.6 5.7 1 1.4 7. 9:~~~3. : . 5.4 6 1 . . 1 . 1:1 U- 31 . 1..6 9.1 91S 891 ,S 6.6 . 3.' . .7 0. L7 9 6. .9 8.1 .~~~~~~~~~~~~~~~~~~~~~~~~~~~71.1 Cott" 3.6 34.2 5 J 45.2 41.6 4.9 45.4 *7.5 47.5 47.5 J.! 4.! 47.5 47.5 47.5 47.5 47.5 7 5 62.? 62.9 32.9 62.9 62.9 6 9 Ot%Z t8! Hit7W2? 2- i- 2]-5 t-i +g12;- § t '3. 1An 2|§, 1 .i .l .s t12.i '@t Z i? 21- 2- 1 >X|Jb73 ~ ~~~~~ - I -1 -2 3 -4.1 -7 9 * S -4 1 14 7 Z @2 9.S601.2 3 1"2t541g5 4Fl? 147 F25 '7 2i 21.7 nl St15 It .321t3 . *t is, 7.5 2.1 79.1 7f.1 79.3 179. 79.1 3 7 3 9 179 0 79.1 79.1 79.3 7. .1 4. 445 5 5 *43 " B. P64.! tOTAL S ,P______5__9__D °IN F.6 CT I J 6.2 77.s 77.6 S.6 P j.O 77.6 77.6 77.6 1.17.6 5 5 77. 6 77,77.6 *.1 77.6 51. 77.6 77.1 77.6 66.! 3!1.5 S2.? 6 U 1 65.5 65.5 5 3. 92.2 92.2 92.2 92.2 2.2 !.1 tNM -13.5 -1.1 9.7 It.2 15.1 41.2 4V.2 52.9 55.3 63.7 14.9 9.2 111.2 11.1 9.5 136.6 1U6.6 131.6 111.2 11.'! 11.1 117.6 117.1 117.6 EW=Oc Rte of itYjm 73  P ilna Mortb ainqlcltw rojc _________________EcoqoniC - Siiandol A43ly0% Provirte 101? 1 ~ ~~~3 ~~2 5 4 6 7 9 9 10 11 12 lV 14 15 it I? to 39 20-3 Eartbwrlgt 9.S t!.5 19.3 19.3 7.3 0.? 0.3 0.3 0.3 0.9 9.0 3.0 I. 3.01 .0 o 3 9.g 0.2I 10. I.1 Stiructov 0.7 3.1 5.4 9.7 6.5 2.5 3.0 0.3 0.6 3.0 0.8 3.30 0.0. 3.1 4 . 0.0 0.0 1.0 lcrf Icasim ufIP& III 35. 9 6,5 6.9 1.9 8.3 0.3 3.3 0.5 0.3 8.3 3.3 3.9 9.I 1, J.33.).3 3.1 3.3 Nwsrie/Tre ;Rtlt . 5.4 0.9 1.6 1.3 1.9 6.3 0,0 3.3 0.3 3.0 0.3 3.J I.3 0.6 3.3 3.0 0.3 3.0 9.3 R______________ Thists i , ii 2i I 1:? .: 63 33.1 I~~~~~~~.? 1:? 1:1I: 1.1 0.1 1 ; : .1 91 3. 5.1 3. t1:1 i1-: I.' I? :? .: 1 . A 0. l",~ lucreatleCiel- 3.3 2.3 3.9 4.0 4.7 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5 5.31 5.3 5.3 5.3 With Proiect 2-1:.CtiivI Meat ~~~~0.9 12.9 135.1I55. 192.4IP7.0 191.3 196.7 I.I 37.9 34.7 31.0 40.4 43.6 40.7 40.9 48.6 40.9M-~7 196i,7 Hal:, 196.7 196.7 tah.7 196.7 196.7 194.? VO. 391.7 210.4 210.4 48.9 40.9 43.9 40.9 40.8 42.i 4":8 AM. 47.3 17.3 0th8cpiil *.~~~~~~ 3:j 5.6 4. 3.5 4.1 4.5 5.1 5.1 5.1 5.1 d 51 5.1 5,15.1 f 1 5 1 5.1 5.1i 5. Svnt Potato 0.1~ 57 a 2 2:1 2:2 2.3 2:3 2:3 2.3 2.3 P.3 2:3 2:3 2:3 2 3 2:3 2:3 . c Grlwodnvt 1~~.0 3.1: 51 5.8 1 .1 4.1 4 4.1 4.1 4.1 I.4 4.1 4.3 4,2, Cotton ~~~~~~~0.1 21. 25.3 149.9 15.4 157: 6 1 7 17. 713 171. 1713 37.17M 1.3171.3 1721.0171.! MA. 71326. 2. 0ihe "S Cr 0.0 34.9 13.8 23.8 29.9 2t.3 21.9 22. 22.5 22. 22.5 2.5V 2. 5 2. 255 32.5 2.'. 22532. 2. SibTotal 0.3390.5 M5. 4 37A 420.3 42'.0437.9 45'3 5.34 5.2.3*M5.34552.3 452.3 4?. Less S 5. 153 lI! J:14 I161, 117'I 171017 t: 1' 11 9 3 452. 3 15:.! 17193?'t1.9 452. 15.3 531.0 17I.?175.7 531.1 & co TOA INP1OJCT ______________ U~~1- "IT' 235.2 297.0 SI P) 22. . 2-2a 4. 2i- 5. 268. .: 1. MA M.131. 6. 2162242..937.6 3j 291.1 I. 20S.3 4. 3 33. "47 314. V' 5,0 . 355.3 175.7 SLA294:0.4 .0 0. 355.3 vjp.R .u!aUrdutii .93 54 105.4 II. Its. 115.9 115.9 15. uS., its. I159 115. 115.9 I1t. 1159 1159 115. 11. 124.3 1M4.1 ,l.Jle 1:0 34.3 36.4 39.6 3* 386 386a 86 38.3. 396 3. 38.6 38. 3i16 Ceti" .4 152.4 153. I63.4 013.4 163.4 163.4 313. 3634 163.4163. 163.4 1634 16. 6.~~~141 386 39.6186 4.7 44.7 Oth cropi 1.319. 21.4 22.7 22.7 2.7 227 227 22 53I 163.4163.41634 21.6.4 216.4 Sib Total 22 2 27 ?227 22.7 2. 22.7 22 .?:2,. 3. 9. 1. 4. 336336336336 341:13ri 1 3PI& 341:63-15.6341.6348.6340. 6 3'I6306 0. tes, PrtdocitinCosts 0.3132 11t5.5 t27.7127 7 127.7 127.7 1277 127.7 127. 127.7 127.7 127.7 127.7127.7t2t7l'.7I??13. TTU.LVIrhlPiPt 1.. 10.37e, 2500,1212.9232.? 23.9 212.9 3. 212.9212.9 212.9 212,9 212.912P.9232.?212.9212.9212.92)2.9277.7277.7 O-ET ~~~~-149 16i.245.5-39.5 -6.3 26.3 5q.1 63.3 64. t 65.6139.3 72.9 79.0 76.i 96.9 62.t 62.I 62.3 72.2 72.2 Ecam mc Rateof Retumn 642  A1s P jlflN IIOIEII!_____ AtMUI NFNEW~MM MAO UAMhI 11<.fe X e I/ sSY hatsie s! i/ ISEa.CIS! SYI/ I4sve sv (Tons/ha) 'VithProject' Yields ?/ 4.1/0.8 3.24/0.0, 4.5/1.0 3.47/1.774.5/!.2 92 3.46/0 2.5/0.7 'Vithout Project' Yields(TonA/ha) U 2.6/0.5 3.38/0.M 3.4/1.8 4.69/1.10 3.0/1.1 4.2i:11.t2 a.l. n.a. 0(302)3I (m39x)/ 33 (#122) CropPrices(1/Tons) Econmic 5j/ - Wheat g5 979i 481-514 874-935 362 874935 51 t 24, 5I 4,7Y62U26-3 460 4,79620 t_5n, 0?3"NI 4-7749-6429-6,290 Sul3 257 571 -Cotten (-4SR) I I/ P-12 3/ Crop Incremental Production Cot #1272 #1312 f#100 #1912 l7iit as the valve EfiTjiile,defined ofvariable testedat which o net presentvalve of projert costsandbenpfits (discountpd to zero. 122)isreduced V Average future ,ields if wheat andcolttn (themore cropsin tert. of value)respvrtivel); otherVie)ds reduted important propurtionatel,. ercent change required in OliPofvariale tlested toobtain the switchin; ioi.d, Theecononic fartgateprime' for allother reduceh crops properionateiy. for project or a whole.  - 88 - ATTACMENT 1 Page 1 of 4 COMMENTSFROM THE BORROWER Mr. Gra:.am Donaldson Chief Agriculture, Infrastructure and Human Resources Division Operations Evaluation Department The World Bank 1818 H Street, N.W. Washington, D.C. 20433 Apr. 3. 1989 Dear MR.-Doialdson I am very ltad to -havercceived yourletter datedJan.-25i1989. Theattached PPARof theNorth China Plain AgriculturaltProfeCt hasbeentranslated.into chinese anddistributed to thePOsiit-aLl levels. After -discussions withmy colleagues andthestaff of-the PMOs, nowI..am summarizing ourcomments as followings 1. TheNorth China.Plain Agricutgtural Project.isa successful one.thefive years' experience shows thatthetechnology used by the project tocontrol salinity andwaterlogging is.feasible. It hasachieved satisfactory economic benefits andcanserve as a good example in theagricultural development of tlhewholenorthchina plain which hasbeenrecently considered as oneof themostimpor- tant regions to be developed by theChinese government. 2. TheWortd Batkstaff helped us a lotduring thepreparation andimplementation of theproject., suchas helping us todesign theproject, going toproject sites every yearto supervisethe prject andsolve problemstogether withourstaff; arranging foreign specialists suchas tube wellexpert to givelocalpeople techincal advices; givingtraining courses on mornitoring and evaluation. financial accunting atidtechnology; andpreparingthe seed production andselection programwhich increasedtheagri- cultural production remarkably. Thehardandefficient workof theBankstaff includingtheOEDmission ishighly appreciated by ourproject staff. 4. Therainfall in theperiod of project implementation mas less thannormal, so theground water table wasrelativelylower.  - 89 - ATTACHMENT1 Page 2 of 4 At thesametimethe land use right was transfered to individual farmers who liketo saveland by enlarging spacing of fieltddrains, so thestandard of drainage networks in someproject areas was lowered by themid-term a4justment. Froma longterm view, however, we wouldliketo improve the field works witha higher standard stepby step, so as to raisetheir drainage capacity. S. Theproject is the first Bank-supported agricultural deve lopment project in china. There weresomeshortcomings in stati- stical workat thegrass-roots level. Someof thenecessarg data wereunavailable whenpreparing theProject Completion Report. Now we havemadethemup witha hardwork. 6J The implementation of theproject coincided withthe intro- duct,on of rural reform. It is impossible to strictlv separate theeffect of policy reform fromthat of project benefits quan- titatively. But unquestionably, without theproject investment, thecapability and creativeness of the farurs in the land rec- laimation would be limited and there would not be so muchculti- vitedland developed in these years. Mostof theproject areas selected wereaffected by salinity andwaterlogging moreseriou- stl.Nowwith the project, the yields and production in the project areas have generally caught up withor evensurpassed theadjacent areas. ;. Though the project has beencompleted, there is still a lot of workto lie doneif we wantto fully develop itseffect and sustain itsbenefits. To ensure adequate maintenance andeffective operation of theproject worksis mostimporatant. it's necessary to keepth PMOscontinuely. and thePMOsat all levels should try their beston thebases of theexisting projeet works and rovery funds to promote thecomprehensive economic de-veiopmentof the project areaand to incease .heincome and to raise the living standard of thefazmers. u, We agree with the conclusions of thePCR andPPARwhichare generally objective. Hopethpco-operation between us willbe continued ir. thefuture agricultura development fo thenorth china plain. 9, Following are some additional explaination and information Footnote, for the project completioi 1 report. Para.18,PPAM a. fortheBasic DateSheet. up to June30, 198C. theactuat Total Projec: Costis 1,7.5 CusS million), onehundred percent of theAppraisal Estimate. b. forpara3.7 Following is a new table withadded datafromshangdong project areaanddataof mi'-term target: AjAui  - 90 - ATTACHMEMT1 Page 3 of 4 Mid-term SAR adjustemeatActual X mains& branches 340 36t 390 106 laterals 720 699 73, 105 sub-laterals 4000 2271 2295 101 total 5060 3338 3418 102 Hienan N!d-term SAR adjustmentActual mains& branches 340 .379 388 102 laterals 810 421 454 106 sub-la'erals 1800 . 152 825 l1 total 2950 1558 1667 107 Shandong Mid-term SAR adjustment Actual X &branches 580 mains 2296 2020 881 laterals 1670 1215 1305 107 sub-laterals 3000 960 1632 170 total 5250 7441 4957 111 [ ~~~~~~~~~~~~~Total Mid-term Adjustment Actual X & branches mains 3043 2198 921 laterals 2341 2492 106 sub-laterals 3983 4752 119 total 9367 10042 10l _ : Thedata .. ofActual completadMainsandBranchesinShandong isthefigure up toJune 30,1987.As waterwasstoredin themains andbra.aches forirrigation inearly1987.theirdeepeningand widening could not be done at thattime. Targetsof themainsand branches hadbeei fully reached up totheendof 1987. c.For para 4.15. "FertilizersandAgrochemicals".!As to the Footnote applicatioL of thephosphatic fertilizer, we checked again witlh Para.4.15, local project staffandfoundoutthat theactual situation was: PCR "The phosphatic fertilizers weresainly appliedinthelands with no or light salt.No chemical fertilizerwasappliedbefore leaching in the heavy salinesoil." d. For para 5.20 - One situation shouldbe noticedwasthat theprojectareas selected werethe placeswithpoorsoil andlow production. The basic production conditionsthere were muchworsethan the non-project areas in thesamecounties.Nowcrop yieldsin  - 91 - I ATTACHMEET Page 4 of 4 Footnote, project areas have surpassed non-project areas. Para. 5.20, e. All the "a.n." data in the PCRhave now been filled. PCR Withbestregards. sincerely yours Kai-piiig Zhang 1 Deputy dire etor,the office of External EconomicRelations. Ministry of agricutture Beijing. China  IBRD16135 M ANGOLi j j,_ ! _x___} t9>N*Q^ ~~~~~~~~~~~~CHINA >t-L<,; ^ X~~~~~~~ - j /% CHINA PLAIN ~~~NORTH m e PROJECT ~~~AGRICULTURE . tr .t .n 1 \ / , *~~~~~~~~~~~~~~~~~~~ PROJECTAREAS . ' (, .... : -''s / ' '' m= ~~~~~~~~~~~~~~NROADS NAPLAINEOUNDARWt ~~~~~~~~~~~~~~~~~~~~~~~~~~~RIVERS Kr 71 , -tt ,1 , >Flv 4 . \ iTEWln E g , +,s *--'--*- ~~~~~~~~~~~~~PROVINCIA EtOUNDARIES A. _ \ \ } ~~~~~~~~~~~~~~~~~~~~~~~~MILES KILOUETER59W1IL .° I 44.1 I \\\X\~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.. 0. ( WX~~~~~~~~~~~~~~~~~~~~~~~~ J~~~~ iSW wX n' Lwe=* 5WXf N "U NVA (W_~~~~~~~~~~~~~~~~~ j8->o<. Im \ie' Thwf  CHINA PROJECT NORTHCHINA PLAINAGRICULTURE YUCHENG AREA PROJECT afar Z] PROJECT AREAS 3 j ~~~~~EXISTING MAIN DRAINS -- PROPOSEDMAIN DRAINS _ - -- EXISTING BRANCH DRAINS b ng x, PROPOSED BRANCH DRAINS SURFACE WATER IRRIGAED AREAS GROUNDWATER IRRIGATED AREAS ROADS '7, b- RIVERS *'4 ,i ')/" \ COuNTY VON/AIE BOUNDARIES 0 2 46~~~~~~~~~~~1 KILOMETERtS -' ping Yuan ron -00 ' (' Ga ( Oiho Hu 3804?C