China - Medium-Sized Cities Development

 ICRR 10176 Report Number : ICRR10176 ICR Review Operations Evaluation Department 1. Project Data : OEDID: OEDID : C2201 Project ID : P003520 Project Name : Medium-Sized Cities Development Country : China Sector : Urban Management L/C Number : C2201/L3286 Partners involved : Prepared by : Charles Derek Poate, OEDST Reviewed by : Kyu Sik Lee Group Manager : Roger H. Slade Date Posted : 08/12/1998 2. Project Objectives, Financing, Costs and Components : Objectives: To assist the project cities to (i) improve overall city planning, including across and within sectors; (ii) increase efficiency in the utilization and management of existing facilities; (iii) strengthen resource mobilization; (iv) support expansion of economic activity; and, (v) promote prudent management of environmental resources. Components: (i) urban planning and management reforms; (ii) construction and equipping of schools and teacher training; (iii) construction and equipping of health facilities and training for health officials; (iv) road construction, improvements to public transport and completion of land use -transport studies; (v) construction and equipping of water supply facilities; (vi) construction of housing units for sale; (vii) financing of technological restructuring projects by municipal industrial enterprises; and, (viii) financing of pollution control projects and provision of equipment for municipal Environmental Protection Bureaus (EPBs). Costs and financing: The total project costs were US$ 250.2 million (US$ 277.2 million at appraisal) of which the Bank financed US$ 79.4 million through a credit and US$ 79.4 million through a loan. A balance of US$ 3.94 million was canceled at the borrower's request . 3. Achievement of Relevant Objectives : The achievements were substantial and satisfactory . Most investment components contributed substantially to the development of the cities . The majority of institutional development objectives were achieved during implementation and, to a large extent, during preparation . The efficiency of utilization and management of existing facilities was increased substantially . EPBs strongly supported the promotion of prudent management of environmental resources with favorable impacts on all industrial projects . 4. Significant Achievements : In Changzhou, the work to improve overall city planning and management focused on developing basic financial management models and systems, which proved very satisfactory and were disseminated to other cities by the provincial authorities . 5. Significant Shortcomings : (i) delays in implementing the TA to strengthen planning and management capacity; (ii) unremedied weaknesses in financial planning; (iii) serious delays in organizing the collection of loans made to enterprises. 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: Partial Modest "Partial" is equivalent to "modest". Sustainability : Likely Likely Bank Performance : Satisfactory Satisfactory Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : (i) The most difficult component of multi-sectoral urban projects is equipping the core agencies of the municipal governments to plan and manage complex initiatives and to play their co -ordination and control role. TA should be provided as the first stage of implementation . (ii) Training and skills transfer in financial planning and management is important for project success and should be a significant element of future projects. 8. Audit Recommended? Yes No 9. Comments on Quality of ICR : The ICR is satisfactory. Although major issues were addressed adequately in the report, no detailed economic analysis was carried out in the ICR due to lack of data, and the Borrower's inputs were deficient with no comments on the ICR.