China - Taihu Basin Flood Control Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 11308-CHA STAFF APPRAISAL REPORT CHINA TAIHU BASIN FLOOD CONTROL PROJECT JANUARY 22, 1993 Agriculture Operations Division China/Mongolia Department East Asia & Pacific Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (As of September 1992) Currency Unit = Yuan (Y) $1.00 = Y 5.50 Y 1.00 = $0.1818 FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES 1 meter (m) = 3.28 feet (ft) 1 cubic meter (cu m) = 35.31 cubic feet 1 kilometer (km) = 0.62 mile 1 hectare (ha) = 2.47 acres (ac) I mu = 0.067 ha I ton (t) = 1,000 kg = t2,205 pounds Qbs) 1 kilogram (kg) = 2.2 pounds Qbs) ABBREVIATIONS AND ACRONYMS bcm billion cubic meters BWR Bureau of Water Resources (province) CMIEC China Machinery Import and Export Corporation CPLG Central Project Leading Group ECH Engineering Construction Headquarters GOC Government of China ICB International competitive bidding LCB Local competitive bidding M&E Monitoring and Evaluation MOF Ministry of Finance MWR Ministry of Water Resources NEPA National Environmental Protection Agency O&M Operation and Maintenance PMO Project Management Office PPLG Provincial Project Leading Group SFCH State Flood Control Headquarters SOE Statement of Expenditures TBA Taihu Basin Authority TBWRPB Taihu Basin Water Resources Protection Bureau TBWRPC Taihu Basin Water Resources Protection Committee  FOR OMCIAL USE ONLY CIINA TAIHU BASIN FLOOD CONTROL PROJECT LOAN/CREDIT AND PROJECT SUMMARY Borrower: People's Republic of China lBenfidary: Ministry of Water Resources (Taihu Basin Authority) Amount: Loan: $100 million Credit: SDR 72.8 million ($100 million equivalent) Termn: Loan: 20 years, including five years of grace, at the Bank's standard variable interest rate. Credit: IDA standard terms with 35 years maturity. Objectives and Desaiption: The project would control floods and improve land drainage in China's most industrialized and highly productive agricultural area. The project would also improve the quantity and quality of raw water for the Shanghai City water supply, and expand and improve inland waterway transportation. Flood control and land drainage would be effected through river channelization of the Wangyu and Taipu Rivers to evacuate flood water to the Yangtze River, flood diversion through the Hang-Jia-Hu river system to Hangzhou Bay, and increased flood regulation in Tai Lake through strengthening and upgrading of the lake's perimeter dikes. The enlarged Wangyu River channel would be used to divert water from the Yangtze River to augment water supply in the basin during dry seasons. Inland waterway transportation would be improved through more stable and controlled water levels and additional shiplocks constructed in rivers and canals. Institutional capability would be strengthened through better facilities for flood monitoring and forecasting, communication, staff training, technical assistance, and equipment. Benefits and Risks: The main benefit is prevention of flood damage and losses. The cost of long-term annual average flood damage and losse that would be prevented is estimated at $77.6 million. The improved drainage on 86,000 ha of cropland would provide annual incremental production of 43,000 tons of grain and rapeseed valued at about $4.5 million. Other benefits, not readily quantifiable, include: (a) enhanced quantity and quality of raw water for Shanghai's polluted water supply; and (b) improved and expanded inland waterway transportation within the Taihu Basin. The project faces no significant technical risks. The engineering concept is sound and the solutions have been derived after years of studies and This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - planning. The effects of any unprecedented flood exceeding the designed value would be substantially reduced by the project works and through flood forecasting system and contingency plans to be provided under the project. Organizational and institutional risks would be compensated by staff training in project implementation and management. Estimated Project Co6t: A Local Forei4n Ttl