Document of The World Bank FOR OFFICIAL USE ONLY Report No: 24351 IMPLEMENTATION COMPLETION REPORT (CPL-35600; SCL-3560A; SCPD-3560S; IDA-24630) ONA LOAN IN THE AMOUNT OF US$100 MILLION AND A CREDIT IN THE AMOUNT OF SDR72.8 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR A TAIHU BASIN FLOOD CONTROL PROJECT 06/27/2002 Rural ID'evelopment zmd NaturaB Resources Sector Unit East Asia and lPacifinc Regonm This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective May 31, 2002) Currency Unit = Yuan Y 1.00 = US$ 0.12 US$ 1 = Y 8.3 FISCAL YEAR January 1 December 31 ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy DCA Development Credit Agreement DSS Decision Support System EPA Environmental Protection Agency EPB Environmental Protection Bureau ERR Economic Rate of Retum FAO/CP Food and Agriculture Organization of the United Nations/World Bank Cooperative Program GIS Geographic Information System ICB Intemational Competitive Bidding ICR Implementation Completion Report MOF Ministry of Finance MTR Mid-Term Review MWR Ministry of Water Resources NCB National Competitive Bidding NPV Net Present Value NRCR National Research Center for Resettlement O & M Operation and Maintenance PLG Project Leading Group PMO Project Management Office QAG Quality Assurance Group RAP Resettlement Action Plan RIP Resettlement Implementation Plan RCR Resettlement Completion Report SAR Staff Appraisal Report SDR Special Drawing Rights SEPA State Environmental Protection Agency TBA Taihu Basin Authority Vice President: Jemal-ud-din Kassum, EAPVP Country Manager/Director: Yukon Huang, EACCF Sector Manager/Director: Mark D. Wilson, EASRD Task Team Leader/Task Manager: Qun Li, EASRD CHINA TAIHU BASIN FLOOD CONTROL PROJECT CONTENTS Page No. 1. Project Data 1 2. Principal Performance Ratings I 3. Assessment of Development Objective and Design, and of Quality at Entry 2 4. Achievement of Objective and Outputs 3 5. Major Factors Affecting Implementation and Outcome 8 6. Sustainability 10 7. Bank and Borrower Performance 11 8. Lessons Leamed 17 9. Partner Comments 18 10. Additional Information 19 Annex 1. Key Performance Indicators/Log Frame Matrix 20 Annex 2. Project Costs and Financing 23 Annex 3. Economic Costs and Benefits 25 Annex 4. Bank Inputs 30 Annex 5. Ratings for Achievement of Objectives/Outputs of Components 32 Annex 6. Ratings of Bank and Borrower Performance 33 Annex 7. List of Supporting Documents 34 Annex 8 Borrower's ICR Summary 35 Map IBRD 31924 Project ID: P003597 Project Name: TAIHU BASIN FLOOD CONTROL PROJECT Team Leader: Qun Li TL Unit: EASRD ICR Type: Core ICR Report Date: June 28, 2002 1. Project Data Name: TAIHU BASIN FLOOD CONTROL PROJECT L/C/TF Number: CPL-35600; SCL-3560A; SCPD-3560S; IDA-24630 Country/Department: CHINA Region: East Asia and Pacific Region Sector/subsector: VM - Natural Resources Management KEY DATES Original Revised/Actual PCD: 11/12/1991 Effective: 06/16/1993 06/30/1993 Appraisal: 07/10/1992 MTR: 10/12/1995 06/12/1998 Approval: 02/23/1993 Closing: 06/30/1998 12/31/2001 Borrower/lImplementing Agency: People's Republic of China/Ministry of Water Resources/Taihu Basin Authority Other Partners: Jiangsu and Zhejiang Provinces, and Shanghai Municipality STAFF Current At Appraisal Vice President: Jemal-ud-din Kassum Gautam S. Kaji Country Manager: Yukon Huang Shahid Javed Burki -Department Director Sector Manager: Mark D. Wilson Joseph Goldberg - Division Chief Team Leader at ICR: Qun Li Lang Seng Tay ICR Primary Author: Lang Seng Tay; Qun Li 2. Principal Performance Ratings (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible) Outcome: S Sustainability: HL Institutional Development Impact: SU Bank Performance: S Borrower Performance: S QAG (if available) ICR Quality at Entry: S Project at Risk at Any Time: No 3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: Project Objectives. The primary objective was to reduce the depth and duration of flooding resulting from monsoon or typhoon runoffs through improved river channels to evacuate floodwater to the Yangtze River, improved drainage for the Hangzhou Bay and increased flood regulation in the Taihu Lake. The secondary objectives were to protect the water quality and augment the supply of raw water to Shanghai Municipality water supply, and enhance inland navigation and improve drainage of agricultural land. Evaluation of Objectives: The project objectives are relevant and important. Taihu Basin, covering parts of Jiangsu and Zhejiang Provinces and the whole of Shanghai Municipality, is China's most industrialized and highly productive agricultural area. During the summer of 1991, heavy and incessant monsoon rain caused widespread flooding in the Basin. The flooding was aggravated by inadequacy of the main river channels to evacuate floods, blockage of flood passage by blocked rivers and drainage channels, insufficient capacity of the Tai Lake to regulate flood, and reclamation of flood detention areas for cultivation. The resultant flood caused severe flooding to major cities (Wuxi, Suzhou, Changsu, Huzhou, etc) and the highly industrial and agricultural production areas in the Basin. Total flood damage was estimated at US$2.0 billion: 80% incurred by city factories, township and village enterprises, and 20% by agricultural losses. After the flood, China requested the Bank Group to prepare a flood mitigation project on fast track basis. The project ensures the economic well being of some 36 million people by providing better basin-wide water management techniques. The integrated approach to flood management resolves the inter-jurisdictional conflicts of the past. In addition, releasing water from the Taihu Lake, supplemented by water diversion from the Yangtze River during droughts, ensures both the quality and quantity of raw water for Shanghai Municipality water supply (serving some 13 million people) whose main source in the Huangpu River had been badly polluted by industrial effluents. The enlarged and deepened main river channels (Wangyu and Taipu Rivers) improve inland navigation. 3.2 Revised Objective. There was no revision of the project objective throughout the project implementation period. 3.3 Original Components: The main components were as follows: (a) Taipu River Component: widening and deepening of Taipu River over a length of about 44 km and construction of a 300-cu.m./sec pumping station near the existing Taipu Gate, including control gates and shiplocks to evacuate flood waters to Huangpu River/Yangtze River; (b) Wangyu River Component: widening and deepening of Wangyu River for a total length of about 60 km, construction of a new inverted siphon under the grand Canal and a new 180 cu.m/sec pumping station combined with a shiplock-gate at the outfall into the Yangtze River, including bridges, shiplocks and control gates to evacuate flood water to Yangtze River; (c) Hang-Jia-Hu South Drainage Component: widening and deepening of 98 km of river and drainage channels in the Hang-Jia-Hu area, including construction of two major control gates and a 200 cu.m./sec drainage pumping station, to alleviate local flooding and divert flood water to Hangzhou Bay; (d) Taipu Lake Perimeter Dikes Component: constructing, raising and strengthening 270 km of earth dikes around the Taihu Lake to provide additional flood regulation in the Taihu Lake; - 2 - (e) System Operation and Monitoring Component: construction of a basin-wide flood monitoring and forecasting system to improve the water management capability of Taihu Basin Authority; and (f) The Institutional Development and Strengthening Component: provision of technical assistance for developing computerized models for basin-wide hydraulic facilities operation and water quality studies, staff training, and equipment and facilities for operation and maintenance and water-related environmental management. Assessment of Design: Based on numerous studies and reviews, the State Council approved the final plan called "Comprehensive Plan for Integrated Flood Mitigation of the Taihu Basin" in 1987. This master plan had identified essentially ten components of flood mitigation and drainage improvement works (see IBRD Map 23916). After the 1991 flood, the government requested the Bank for assistance. The Bank reviewed the recommendations and solutions of the master plan and reached agreement with the government to finance four major components of flood mitigation and drainage work (see above components) and one component of institutional strengthening and development. The four work components selected were critical and would be effective in providing substantial flood relief (estimated at 80 percent of 22.3 bil.cu.m. of flood water of 1954 flood) for the Basin. The three local governments financed the other six smaller components, essentially catering to sub-basin and local flooding and drainage. Their construction was planned to be carried out in tandem with the four major components funded by the Bank Group. Design for the flood mitigation was based on the 1954 flood which was equivalent to a return period of 1 in 50 years (90 days rainfall). Design for sub-basin flood mitigation and drainage improvement was based on a return period of 1 in 20 years. Both the design standards adopted are considered to be appropriate at the time of project formulation, taking into consideration status of prevailing economic development and project cost. Designs for channelization of the main Taipu and Wangyu Rivers were caried out by the Shanghai Design Institute of the Ministry of Water Resources and completed by August 1992 for Bank Group appraisal. In all, ten national and regional research and design institutes undertook designs of the various key works. Their designs were adequately reviewed by MWR, TBA, and panel of experts before the implementation. 3.4 Revised Components: There was no revision of the project components during project implementation. 3.5 Quality at Entry: There was no Quality at Entry assessment or QAG analysis during the course of the project. At ICR, the entry quality is considered to be satisfactory as the project was based on a master plan prepared by the government after years of studies and review by regional and national experts. The Bank Group preparation missions had concurred with the findings and recommendations of the master plan, considering the status of the economic development of the Basin. Detailed feasibility reports and preliminary designs were also adequately prepared for appraisal by the preparation team. 4. Achievement of Objective and Outputs 4.1 Outcome/achievement of objective: The project was completed with three and a half years of extension. The Bank-financed components were satisfactorily completed while the locally funded components have been substantially completed. The flood mitigation works completed under the project were subjected to a real-time test by the 1999 summer flood which was more severe than the 1954 flood. The completed works performed as expected and helped in - 3 - reducing the extent of flooding, flood depths and duration. The flood damages and losses prevented and reduced were estimated at Y 9.76 billion (US$1.18 billion) which is about 198 percent of the total investment of Y 4.9 billion for the flood control elements (including the six locally-funded components). During the drought season of 2000, the completed Changsu Complex at the outlet of Wangu River also performed very well in pumping some 222 million cu.m. of water from the Yangtze River to augment water in the Taihu Lake bringing much relief to water shortage areas fringing the Taihu Lake and along the Wangyu River. Overall, the project has achieved its main objectives and reached or exceeded its expected outcome. Therefore, the project achievement of objectives is rated as more than satisfactory. 4.2 Outputs by components: Taipu River Channelization: Channelization (widening, deepening and straightening) of Taipu River by dredgers was fully completed except for the Taipu Pumping Station which is under construction and expected to be completed by end of 2002. The major work completed compared to the appraisal estimate is summarized below: Item/Unit Appraisal Revised Completed Percentage Completion/Appraisal Land acquisition (ha) 414.7 545.5 779.2 188% Channelization length (km) 44.06 44.0 59.2 135% Earthwork quantity (mil.cu.m.) 53.64 43.0 43.0 80% Slope protection (kIn) 142 141.35 141.35 100% Taipu Pumping Station (300cms) 1 1 In progress Completing end 2002 Control gates/shiplocks 63 70 70 111% Bridges 8 9 9 113% Total investment (Y mil) 760.2 1471.6 1219.3 160% Note. Quantity increased or reduced due to detailed design dunng construction and actual local needs During the catastrophic summer flood of 1999, the completed Taipu River channel evacuated a total of 2.89 billion cu.m. (28.9%) of the total basin flood volume of 18.1 billion cu.m. estimated from July 30 to September 30. Taipu Pumping Station is designed primarily to pump 300 cu.m.sec of water from the Taihu Lake into the Taipu River during drought so as to ensure supply of about 100 cu.m.sec of raw water for Shanghai Municipality water intake at Mishidu located upstream of the Huangpu River. The water supply intake is currently affected by polluted water. Construction of the pumping station was put on hold as Jiangsu Province requested more in-depth environmental impact study on the Taihu Lake during the dry season, because the earlier environmental impact study done in the 1980s was no longer valid as rapid economic growth had taken place since then, resulting in greater water demand in Jiangsu. New studies were conducted, especially on the impact of pumping water at the lowest permissible water level in Taihu Lake. After three years of study and deliberation by experts, coordination and intervention by MWR/TBA, resolution was reached in August 1999 among TBA. Jiangsu and Shanghai on the optimum lowest water level for pumping during the drought. Contract for the main pumping station was awarded in 2000. The Implementation Completion Report (ICR) mission visited the site and found excellent progress has been made in the construction of the main pumping station (structure is near completion). Installation of the pumping equipment will start soon and to be followed by the motors and electric control equipment. High tension power lines are also being extended to the site. The ICR mission expects that the main pumping station will be completed for testing and commissioning by the end of 2002. The other ancillary works - management office, staff quarters and landscaping - would be completed before June 2003. Commitment - 4 - has been obtained from MWR[TBA to complete the remaining works according to the agreed schedule. Funds have been allocated and is not expected to be a problem. Wangyu River Channelization: Channelization of this river together with control structures were fully completed by the end of November 1998. Major items of work planned and completed were summarized below: Item/Unit At Appraisal Revised At Completion Percentage Land acquisition (ha) 520.3 615.87 648.59 125% Channelization (km) 60.0 60.8 62.3 102% Earthwork (mil.cu.m.) 46.33 39.67 38.88 84% Slope protection (kn) 69.0 73.4 126.3 183% Wangtin siphon (no.) 1 1 1 100% Changsu Complex (no.) I I 1 100% Control gates/shiplock (no.) 69 61 61 89% Bridges (no.) 15 20 20 133% Total investment (Y mil.) 818.97 1151.16 1114.33 136% Note: Quantity increased or reduced due to detailed design during construction and actual local needs The completed Wangyu River channel evacuated effectively 3.47 billion cu.m. (12.7%) of the 1999 flood volume of 27.3 billion cu.m. from the Taihu Basin. During the dry year of 2000, the Wangyu River also diverted 460 million cu. m. of water from the Yangtze River with 222 million cu. m. going into Taihu Lake and relieved water shortage areas along the Wangyu River and the fringe areas of the Taihu Lake. Hangjiahu South Drainage: This component which involves widening and deepening some 98 km of river channels in the south of the Taihu Lake has been completed with two major control structures and a drainage pumping station of 200 cu.m.sec. capacity. The major items of works are sumrnmarized below: Item/Unit At Appraisal Revised At Completion Percentage Land acquisition (ha) 538.8 516.3 651 121% Channelization (Iam) 98.0 182.7 182.7 186% Earthwork (mil.cu.m.) 24.28 21.25 21.00 86% Slope protection (kxn) 98 198 198 202% Yanguan Pumping Station I 1 1 100% Control gates/shiplocks 47 52 52 111% Bridges 113 96 96 85% Total investment (Y mil.) 564.4 1070.9 1070.9 190% Note: Quantity increased or reduced due to detailed design during construction and actual local needs The rainstorm that caused the 1999 catastrophic was centered around the Hangzhou-Jiaxin-Huzhou region located in the south-west part of the Taihu Basin. The Hang-Jia-Hu component performed very well in evacuation 1.2 billion cu.m. (6.6%) of the total 18.1 flood volume to the Hangzhou Bay during the flood season, thereby reducing flood damages. -5 - Taihu Lake Perimeter Dikes: Raising and strengthening of the 270 km perimeter dikes around the Taihu Lake has been completed except for two small control gates/shiplocks under construction. Major items of work are summarized below: Item/Unit At Appraisal Revised At Completion Percentage Land acquisition (ha) 390.8 353.4 516.3 132% Dikes raised and strength (km) 270 272 272 100% Earthwork (mil.cu.m.) 9.21 8.15 8.15 88% Slope protection (km) 270 272 272 100% Control gates/shiplocks (no.) 100 120 118 118% Bridges (no.) 1 9 9 900% Total investment (Y mil.) 499.06 734.32 729.34 146% Note Quantity increased or reduced due to detailed design dunng construction and actual local needs The completed perimeter dikes performed very well in the control of the 1999 flood. With the raised and strengthened dikes, the flood water level regulated in the Taihu Lake reached El. 5.08m which is 0.43m and 0.29m above the 1954 and the 1991 floods. The designed water level for flood regulation is El. 4.66m. During the peak flood period from June 7 to July 8, the total volume of flood water regulated was about 4.7 billion cu.m. or 26% of the total basin flood volume (18.1 billion cu.m.) estimated during the period. Flood Monitoring and Forecasting System: This component was included to strengthen the flood management of TBA. The system, comprising the hydrodynamic flood simulation and water quality modeling, and telemetric stations to collect water levels, rainfall, stream flow, water quality, and transmission of data by VHF, satellite communication, and computers, was completed in late 1998 and commissioned. Currently, the system network covers 67 monitoring stations in the Taihu Basin, collecting hydrological and hydraulic data and transmitting them through 7 relay stations to the main center in TBA office. The telemetric equipment is of high quality imported from Canada. The system played an important role in monitoring and forecasting the 1999 catastrophic flood, and in disseminating flood information to the local govemments. The ICR mission recommends TBA to further strengthen the system management and operation and maintenance with permanent staff and adequate funds specific for operation and maintenance to ensure continued effective operation of the system. The system would be integrated with the basin-wide flood protection and water resources management system being planned by TBA. Institutional Strengthening and Development: Studies and technical assistance provided under the project were fully completed, achieving good results in strengthening the management and technical capabilities of TBA and provincial PMOs. The four study topics (basin-wide operational model for water resources management, water quality modeling, review of institutional policy and needs toward integrated basin management, and design review and technical specification preparation for Taipu Pumping Station) were satisfactory carried out. The One-D operational model for water resources management was carried with consultancy assistance from Canada. A decision support system (DSS) model was jointly developed by Delft Hydraulic Laboratory of Netherlands, the Hohai University in Nanjing and TBA for monitoring, analyzing and simulating water quality in major waterways of Taihu Basin. This water quality model would provide effective and scientific means of tracking water pollution and quality, and support decision making in improved measures. The last two topics were also completed through local consulting institutions and experts. On local training for project staff, seven topics ((i) procurement, disbursement, and project monitoring and evaluation; (ii) management for water resources engineering; (iii) flood control management; (iv) project design, construction and O&M; (v) environmental monitoring; (vi) application of satellite imagery and Geographic Information System (GIS); and (vii) English language) were carried out - 6 - involving a total of 5,435 person-days. Overseas training completed included training on use of one-dimension operation model in Canada and use of computers for project management at the World Bank Head Office in Washington. The overseas training involved a total 16 man-months. Eight overseas study tours on various technical topics were also made to USA, Netherlands, Japan, U.K. and Canada, involving a total of 29.5 man-months. The provision of studies, staff training and technical assistance had been achieved good results. The overall impact on institutional strengthening and development is substantial. Overall Project: The four main work components financed by the Bank Group have been completed except for the Taipu Pumping Station which is scheduled to be completed in the later part of 2002. However, this pumping station does not affect the perfornance of flood control and mitigation under the project. The six locally-funded component, mainly for local flood control and drainage of smaller sub-basins, are under active construction and scheduled to be completed during 2002/2003 (main works have been completed). Their delay was primary due to funding constraints faced by the local governments, and difficult inter-provincial and inter-government coordination and resolution of technical issues. Assurances have been obtained from MWR/TBA and the three local governments to complete the remaining works on time. Overall, the project has been satisfactorily completed, achieving the main objectives and results envisaged. 4.3 Net Present Value/Economic rate of return: The economic analysis carried by the Hohai University for TBA is technically of a very high standard as well as being comprehensive. It demonstrates that the project is robustly to be preferred to the "do nothing" alternative. The ICR mission reviewed the Hohai University analysis and re-assessed the net present value (NPV) and the economic rate of return (ERR). The relevant economic indicators, using 1999 base prices and a discount rate of 12%, are: At Completion At Appraisal NPV Y 4.4 billion Y 2.55 billion Benefit-Cost ratio 2.5 Not used ERR 28% 27% Whilst the economic analysis for the ICR covers a wider range of benefits than that for the SAR, flood control and land drainage benefits still constitute the majority of the benefits. In comparing the economic analyses prepared for the SAR and the ICR, the major differences in the form of the two analyses are given. The project reduces the flood risk across some 9,000 km2. The assessment of flood control benefits now uses depth-damage curves derived from data for the 1991 flood and annual average benefits are given by taking the average of the losses from three altemative meteorological events and the consequent patterns of flooding. Finally, the actual reduction in losses from floods in the years 1999 to date have been used rather than the average annual losses. Predicted annual benefits in 2002 come to Y 0.91 billion. Land drainage benefits are now included separately to flood control benefits: some 80,000 ha in the Hang-Jia-Hu area of Zhejiang Province are provided with improved land. The project will also allow an addition 0.94 billion cu.m. of irrigation water to be available in a severe drought year for some 153,520 ha of arable land. The effect of both land drainage and irrigation is to reduce the risk of complete or partial crop failure. For land drainage, the estimated gross improvement in yields is estimated to be from 5.63 tonnes/hectare to 7.69 tonnes/hectare for paddy rice and from 2.25 tonnes/hectare to 3.63 tonnes/hectare - 7- for wheat. Predicted annual benefits for land drainage amount to Y 35 million and those from irrigation to Y 51 million. The project will increase the sustainable yield of water available for industrial use by 0.32 billion cu.m. per year. Annual benefits amount to Y 76 million. At the same time, the increased volumes of water will promote water flow in lakes and rivers, enhance environment carrying capacity and improve water quality. In turn, this will reduce the costs of water treatment to a small extent, yielding annual benefits of Y 82 million. The detailed economic analysis is in project files (see Annex 7). Some 47 million tonnes of freight are carried along the watercourses affected by the project and this volume is predicted to grow to 58 million by 2010 (Research Institute of Water Economy 2002). Annual benefits to navigation are predicted to be Y 108 million. 4.4 Financial rate of return: Not applicable. 4.5 Institutional development impact: The institutional development impact is substantial. It achieved good results and impact. Exposure and participation of project staff with no prior experience with World Bank projects provided the rare opportunity of acquiring valuable project implementation and management skills, and capacity building. Project staff at all levels benefited from training and study tours in various aspects of project management - planning, supervision, monitoring and evaluation, financial management, and computerized applications. Through contact with the Bank Group experts and consultants, TBA and provincial staff were able to acquire new technologies to enhance their technical capability, especially in dredging of large river channels and construction of major structures. Under the Studies and Technical Assistance component, TBA's flood forecasting, simulation and dispatch system has been upgraded and expanded to cover the Taihu Basin and provided with new equipment and instruments. Staff was also trained overseas to maintain and operate the system. The system was tested for the real-time flood event in 1999 and proved to be effective in the flood management. Thus, TBA's technical capacity and capability in flood management for the whole Taihu Basin have been strengthened. The project procurement had provided good opportunities for local engineering consultants in design, preparation of complex technical specifications and monitoring and evaluation. Local contractors and suppliers also gained valuable experiences through participating in intemational competitive bidding and in the construction of major civil works and supply of major equipment for the various pumping stations and control gates and shiplocks. 5. Major Factors Affecting Implementation and Outcome 5.1 Factors outside the control of government or implementing agency: Macro-economic factors (inflation, foreign exchange fluctuation, etc) affected the project, especially during the initial three years (1993-95) of the project implementation. Prices of the basic construction materials increased rapidly after project was approved. The local currency Yuan also depreciated against US dollars from US$1.00 = Y 5.50 at appraisal to US$1.00 = Y 8.33, with a high of Y 8.70 in late 1995. This contributed in parts to the overall project cost over-run from Y 2,735 million (US$497 million) to Y 4,306 million (US$518.7 million), an increase of about 57%. Physical project implementation was affected and delayed as TBA had to seek approval of increased project cost and additional budget allocations. Bad weather also affected project implementation to some extent. Floods occurred in the basin during the monsoon periods of 1993, 1995 and 1999: the last one with rainstorm intensity and duration that exceeded the 1954 flood. -8 - 5.2 Factors generally subject to government control: One of the most positive factors in project success was the firm commitment by Central and the three local governments, including the city and county governments, to implement the project. Participation of the local government leadership and staff was active and effective, paving the way for smooth project implementation. Government establishment of the Project Leading Groups (PLGs) and Project Management Offices (PMOs) at all levels were rapid and well coordinated. Negative factors affecting project implementation included delay in approving final project feasibility reports (new and revised), and allocation of annual budgets. The major cause of project implementation delay was the belated approval of the mid-term review project cost by the Central Government. The total project cost increased from Y 2,735.2 million to Y 4,609.8 million, by the time the final review was approved by the government in 1998. The substantial increase in cost led to problems in cost sharing between the central and the three local governments. 5.3 Factors generally subject to implementing agency control: The project was fortunate to have an effective PMO in TBA and Provincial/Municipal PMO in each of the three provinces and one municipality in leading the project implementation. TBA and the provincial/municipal PMOs, with their existing staff, were able to launch the project immediately after the project appraisal by organizing PMOs at the city and county levels. Many of the city and county PMOs were new to World Bank projects. TBA organized training for them in procurement, disbursement, project supervision and financial management. Written manuals were also issued to project staff for their guidance. After an initial period of learning, all city and county PMOs were able to operate effectively. Project supervision and management at the county level was progressively improved to achieve the desired results. The Ministry of Water Resources also provided "overview" supervision, especially of the technical designs and standards. From June 1998 onwards, because the World Bank Beijing Office managed the project, TBA was able to keep frequent contact with the Task Manager in Beijing Office. This close coordination and continuous dialogue had a positive impact on the project, as they helped in solving project implementation problems faced by the Provincial PMOs and also enabled the Bank to monitor closely implementation progress. Project expenditures were prepared rapidly by each Provincial PMOs and submitted to TBA for processing before submitting to the Ministry of Finance for disbursement by World Bank Head Office in Washington The timely disbursement of project funds had greatly helped the cash flow of the project entities which made payments in advance for the works completed. Some works transcended boundaries of different jurisdictions and concurrences of the jurisdictions concerned were required before works could be carried out. Disagreement frequently led to impasse and protracted negotiations, resulting in delay of project execution. Extra coordination by TBA and sometimes intervention by MWR were sometimes required. 5.4 Costs andfinancing: 5.4.1 The total project cost was estimated at US$497.3 million (Y 2,735.2 million) at appraisal, US$558.1 million (Y 4,609.8 million) at the final mid-term review in 1997/98, and US$521.4 million (Y 4,307 million) at project completion. The increase of total project cost at completion was US$24.1 million or 4.8 % (Y 1572 million or 57%) over the appraisal cost estimate. The increase was primarily due to increase of labor and material cost, increased work quantities, work items left out, and depreciation of Yuan against US$ over the years (from US1.00 to Y 5.50 to the high of Y 8.3-8.7). -9- 5.4.2 The project financing by the Central, Jiangsu, Zhejiang, Shanghai governments and the World Bank is summarized below: Source of Financing App aisal At Co pletion Amount ($ million) Percent of Total Amount ($ million) Percent of Total Central Government 130.36 26.2 101.59 19.5 Jiangsu Province 78.77 15.8 84.47 16.2 Zhejiang Province 60.89 12.2 88.66 17.0 Shanghai 27.30 5.5 42.40 8.1 Municipality Sub-total 297.32 59.8 317.12 60.7 Bank/IDA 200.0 40.2 204.3i 39.2 Total 497.32 100 521.4 100.0 \a The extra of $4.3 million was due to the net cunulative gain of SDR appreciation against the US$ over the implementation. 6. Sustainability 6.1 Rationale for sustainability rating: Sustainability of the project is rated as highly likely because: (a) The Bank-financed major components have been completed with sound designs and good quality of construction. The flood mitigation works constructed have been subjected to real-time test by the 1999 flood which exceeded the design flood of 1954 equivalent to a return period of I in 50 years; (b) The existing government agencies, including TBA, have taken over the facilities for operation and maintenance as soon as they were completed. Their continued operation and maintenance is assured, as the agencies are part of the existing local government entities providing the basic services to the people. The local governments have also provided satisfactory annual budget to meet the annual operation and maintenance costs; (c) The completed facilities in the three jurisdictions are subject to annual inspections for their effectiveness and safe operations by inspection teams from the National Flood and Drought Control Command Headquarters and local government. Any deficiency would have to be made good by the local government prior to the flood season; (d) Although the project has been completed and closed, TBA and the respective Provincial Bureau of Water Resources in Jiangsu, Zhejiang and Shangai Municipality will continue to monitor the post-project operation and performance of the completed works and facilities. TBA will coordinate with the three bureaus to address any post-operation problems and/or sustainability issues accordingly; and (e) On the basis of the completed project facilities and their proven performance, TBA has planned to: (i) conduct experimental studies on diversion of Yangtze River water to Taihu lake through the Wangyu River to improve water quality in the Taihu Lake and its surrounding areas; (ii) establishment of a real-time water resources remote monitoring and informnation system to improve and enhance the flood protection and water management in the basin; and (iii) to raise the standards of flood control and prevention in the basin from 2001 to 2010 in view of the rapid economic development and demand for better water resources and their management. (The three plans have already been approved by the government for implementation which for plan (i) started on January 30, 2002.) For more details of the three plans, see para. 7.6.6(c). - 10- 6.2 Transition arrangement to regular operations: Operation and maintenance of the project facilities were pre-determined and defined. The existing Water Resources Bureau of Jiangsu, Zhejiang and Shanghai Municipality took over operation and maintenance as soon as then facilities have been completed and handed over. On the main river systems and the associated major control structures, TBA is responsible for the direct operation and maintenance of Wangtin Siphon and the Taipu Gate, and jointly with Jiangsu of the Changsu Complex at the outfall of the Wangyu River. TBA and the three local governments have jointly prepared the Operation and Maintenance Plan laying down the details on operation and maintenance of the completed facilities. To date, 18 O&M offices are in place (TBA 2, Jiangsu 11, Zhejiang 4 and Shanghai 1) with a total of 678 regular staff and 496 temporary workers. Therefore, satisfactory and adequate arrangements have been mad- for the regular operation and maintenance of the completed works. More details on O&M are given in para. 7.6.6(d) 7. Bank and Borrower Performance Bank 7.1 Lending: Bank performance in lending is rated as satisfactory. The Bank responded promptly to the Government request for assistance. An identification mission was sent in early November 1991 after the flood had subsided. The Borrower's needs were assessed and the project scope and content was formulated for a flood control project to be prepared on fast track basis as requested by the government. This was followed by the Bank preparation/pre-appraisal mission in March 1992. A technical review mission was sent in July 1992 followed by the appraisal mission in September 1992, comprising Bank staff and consultants with specialization in water resources, flood control, economic analysis, river dredging, environment, and procurement. The project was approved in March 1993. Due to the urgency and to facilitate early project implementation, the Bank mission provided US$20 million for retroactive financing of urgent river works on the Wangyu and the Taipu River with effect from March 1, 1992. The whole process, from project identification to approval, took less than 18 months. 7.2 Supervision: Bank Group performance in supervision is also rated as satisfactory. The project was supervised at roughly 6-month intervals and 17 times in all over the implementation period. Each mission usually lasted 5 to 7 days covering project sites in the three provinces and one municipality and included appropriate technical experts in each mission. Supervision mission findings and recommendations were much appreciated by TBA and the provincial PMOs, especially on procurement, disbursement, project monitoring and specific technical issues. Mission aide-memoires were disseminated quickly by TBA to the provincial and municipal PMOs for follow-up action. During 1995/96, the Bank missions assisted TBA in carrying out a review of the project overall progress, expenditures and costs and the revised total project cost was approved belatedly by the government in 1998. The Bank Project Task Manager kept close contact with TBA and this communication was further strengthened when the Task Manager moved to the World Bank Beijing Office in June 1998. This move resulted in closer and more effective interaction between the Bank and the Borrower in solving project implementation issues. 7.3 Overall Bank performance: Bank Group overall performance is rated satisfactory. The Bank Group responded promptly to the Borrower's request, adequately prepared and appraised the project on fast track basis. It provided close and effective supervision and maintained close interaction with the Borrower, Taking into consideration the various implementation constraints, the Bank Group provided the appropriate extensions of the project closing date so that the project could be completed with available resources of the Borrower. - 1 1 - Borrower 74 Preparation. The Borrower performance in project preparation is rated as satisfactory. The Borrower has prepared earlier a master plan for comprehensive flood control and mitigation of the Taihu Basin, and presented it to the Bank Group for review. The Bank lending work was much facilitated by the Borrower with valuable data and coordination. The Borrower understanding and agreement to implement the six other smaller flood and drainage components with its own local funds in tandem with the four main components funded by the Bank was an important step towards achieving integrated flood control and drainage improvement of the Taihu Basin as a whole. 7.5 Government implementation performance: The Government implementation performance is rated as satisfactory. Following project appraisal, a Project Leading Group (PLG) was established in each province, city, and county. The Provincial PLG was headed by a Vice-Governor. Project implementation responsibility was assigned to the respective Bureau of Water Resources in Jiangsu, Zhejiang and Shanghai Municipality. The key role played by the provincial governments was in providing policy guidance to the implementing agencies, effective inter-agency coordination, adequate and timely counterpart fund allocation, and prompt approval of staff for the PMOs. The central government implementation role was mainly delegated to the Ministry of Water Resources to oversee the project implementation by TBA and the local governments. The State Council-appointed committee, chaired by a vice premier, on flood control and mitigation for Huai River and Taihu Basin met four times (9/91, 12/92, 1/94, 5/97) during the project preparation and implementation period. The committee made important decisions on project issues relating to increased project cost and allocation of additional fund required, and cost sharing between three local governments. The committee also determined the responsibilities for operating and maintenance of the major works and structures constructed among the TBA and the three local governments. 7.6 Implementing Agency: 7.6.1 Project Organization and Management. Project Management Offices (PMOs) were rapidly established by TBA and Jiangsu, Zhejiang and Shanghai at provincial, city and county levels. Project staff, mostly transferred or seconded from existing government offices and agencies, proved to be effective and capable after the initial orientation and training. These PMOs were also adequately maintained throughout the project implementation. The Ministry of Water Resources (MWR) provided the leadership and policy guidance to TBA for project implementation. 7.6.2 Physical Construction. Priority was given to construction of the flood mitigation works under the Bank-funded components. Designs and supervision of major river channelization, pumping stations and other complex control structures were entrusted to professionally qualified design institutes. Each province and municipality was responsible for the construction of the works falling within its jurisdiction. TBA provided the overall supervision for major items of work. Smaller works were carried out by city and county PMOs with overall supervision by the provincial PMO. The quality of construction work has been generally good, reflecting sound engineering designs, effective supervision and good performance of contractors. The river channelization of Taipu and Wangyu Rivers involved removal of some 82 million cu.m. of earthwork by underwater dredging. Some of the water control structures (control gates, shiplocks, siphon, and pumping stations) constructed are enormous and were constructed under difficult waterlogged conditions. The PMOs and the contractors concerned are commended on their feat and good quality of construction. - 12 - 7.6.3 Procurement and Disbursement. TBA or Provincial PMOs, depending on the complexity and value of the procurement, carried out procurement of works and goods. For International Competitive Bidding (ICB) procurement, TBA had the assistance from major qualified research and design institutes to prepare technical specifications and ICB bidding documents. In all, 32 ICBs (US$35.55 million and Y 424.8 million in value), 91 National Competitive Biddings (NCBs) (Y 608.1 million), and 531 simplified NCBs (Y 666.7 million) were completed. In addition, some Y 442.4.million of works was carried out through 280 contracts on force account operations. Overall, the project procurement was rated as satisfactory and in accordance with the Bank's procurement procedures and requirements. During the mid-term review, the disbursement percentage for civil works was increased from 42% to 60%. The proceeds allocated for works were also increased appropriately by reducing the proceeds allocated for goods. Although the Bank fund of US$200 million was finally fully disbursed by December 31, 2001, the rate of disbursement was relatively slower than the original schedule, mainly due to counterpart funding constraint and project implementation delay. The following table shows the original planned and the actual completed disbursement by year. Cumulative Disbursement Schedule - Planned versus Actual S$ million) Year | 1993 1994 1995 1996 1997 1998\a | 1999 2000 2001\b 2002 SAR 20 55 110 160 185 200 200 200 200 Revised 29.70 59.15 89.87 104.3 134.58 156.84 180.55 197.5 200 Actulal 29.70 59.15 89.87 104.3 134.58 156.84 180.55 199.5 201.1 204.3 Percent\c 145% 107.5% 81.8% 71.4% 67.0% 78.7% 90.3% 99.8% 100.5% 102.1% \a: Original planned closing date - June 30, 1998 \b: Actual closing date - December 31, 2001 \c: Actual against the original SAR schedule. The disbursement was more than satisfactory during the first two years 1993-94 and started to decline from 1995 onwards. After the lapse of the first closing date of June 30, 1998 the disbursement schedule was formally revised. The final cumulative amount disbursed was $204.3 million vis-a-vis the original Loan/Credit amount of $200 million. The extra $4.3 million was due to net cumulative gain of the Special Drawing Rights (SDR) appreciation against the US Dollars over the implementation period. 7.6.4 Resettlement. Both the Resettlement Action Plan (RAP) and the Resettlement Implementation Plan (RIP) prepared under the project were successfully carried out with good results. The final status compared to that at the appraisal is summarized below: Item At Project Appraisal At Project Percentage Completion I. Under 4 Bank-funded Action Plan Components Land acquisition (ha) 1,864.7 2,595 139% House demolished (mn) 797,240 701,585 88% Households relocated (No.) 6,022 5,396 89.69% II. Under 6 Locally-funded Components Land acquisition (ha) 1,219 1,631 134% House demolished (mi) 395,040 211.949 54% Households relocated (No.) 2,634 4.064 154% Note: The increased quantity of land acquired and the number of household relocated were primarily due to the detailed design during construction and actual local needs. - 13 - Satisfactory independent monitoring and evaluation was carried out by the National Research Center for Resettlement (NRCR) in Nanjing. In all, 15 sample surveys were done and the findings and recommendations were documented in reports submitted to TBA and the Bank. The independent monitoring and evaluation showed that the livelihood and productivity of the project affected people have been progressively restored and their income improved. This has been made possible through the soundness of the Resettlement Action Plan (RAP) and Resettlement Implementation Plan (RIP), transparent resettlement policy, active participation of the affected people and the local governments, and effective institutional management including intemal and independent extemal monitoring and evaluation. A Resettlement Completion Report (RCR) has been compiled and is listed under Annex 7. The ICR mission rated the resettlement under the project as highly successful and in accordance with the objectives of the RAP and RIP. In May 2000, the Bank Thematic Group on Resettlement from East Asia and Pacific Region also reviewed the resettlement component of the project and commended favorably on its performance and achievements, particularly the implementation documentation and the monitoring and evaluation. 7.6.5 Environmental Management TBA performance in the environmental management is rated as satisfactory. Overall, the TBA has done a very good job in addressing the environmental issues related to the project and, as a result of the project, it has become an active player in the field of environmental management in the Basin. The main achievements in addressing environmental impacts are: (i) reduction of flood depth and duration through completion of the project works; (ii) successful mitigation of the construction-induced environmental impacts identified in the SAR and assessed in TBA's report of Assessment of Post-project Environmental Impacts; (iii) establishment of the Taihu Basin Water Resources Protection Commnittee (TBWRPC) as covenanted in the Development Credit Agreement; (iv) completed study of the water quality in the main waterways of Taihu Basin and creation of a computerized water quality model with decision support system (DSS); (v) provision of laboratory analytical and monitoring equipment to strengthen the water quality monitoring and analyses by the Center for Water Quality and Environmental Monitoring under TBA at Wuxi; and (vi) preparation of the Taihu Basin Long-Term Environmental Management Plan. Environmental management could be much better had there been closer collaboration between TBA and Provincial EPAs in dealing with water pollution. There is a general awareness among all quarters of the deteriorating water quality in the Taihu Basin caused by agricultural, industrial and urban waste pollution. MWR/TBA is taking initiatives to experiment improvement of water quality in the Taihu Lake and Wangyu River through dilution of polluted water with better quality of water diverted from the Yangtze River. TBA is also planning establishment of an expanded real-time flood control and water resources monitoring, dispatch and management system for the whole basin. This would include water quality monitoring and management. The ICR mission's consultant from FAO/CP has made specific recommendations for the TBA future environmental management programs (see consultant report in Annex 7). 7.6.6 Compliance with Legal Covenants. The legal covenants in the Development Credit Agreement (DCA) have been satisfactorily complied with, especially on the following: (a) Environment Post-project Impact Evaluation The assessment has been prepared by the Shanghai, Design and Research Institute of the Ministry of Water Resources, in cooperation with the TBA Taihu Basin Water Resources Protection Bureau. In general, it is a well-written and elaborate report, that provides a clear picture of the environmental consequences of the - 14 - Project. In response to the review by the last supervision mission (November 2001), a 6-page executive summary has been added, and the section on recommended actions has been somewhat improved. (b) Long-Term Environment Management Plan (DCA, Schedule 4, Part C, l(c)) The long-term plan has benefited substantially from the water quality model developed with DSS and the large amount of water quantity and quality data collected in the course of the project. The report provides a very good assessment of the current state of the water pollution in the basin, as well as an interesting approach to identify functions of water bodies, leading to water quality targets. In response to the review by the last supervision mission, maps have been added and the implementation plan has been improved. The report has been intensively discussed by the FAO/CP consultant during the ICR mission, and the following options to strengthen the report have been identified: * Improving the explanation of the role of the plan vis-a-vis the water pollution control plans of the EPBs, and adding a section on how the long term plan and the water pollution control plans can be linked. * The list of proposed water quality improvement measures needs to be improved by: (i) indicating if the proposed measure is an idea to be tested, or a measure ready for scaling up or application; (ii) adding the potential impact on pollution control, and the costs of the measures (where available); and (iii) indicating which institute would be responsible for the measure. * Investigation of the cost-effectiveness of the various water quality management measures and, subsequently, ranking them in order to identify which measures should be taken with the available financial resources (possibly in a follow-up report). Currently, the TBWRPC and the Water Quality and Environmental Monitoring Center, also established under the TBA, are operating a monitoring system including some 80 monitoring stations and a well-equipped laboratory for the analysis of water samples. In 1997, a Digital Support System (DSS) was finalized which allows for detailed analyses of water quantity and quality, as well as predictions of the impacts of possible policy measures. This serves as the basis for the Taihu Basin Long Term Environmental Management Plan. However, the functioning of the TBWRPC is currently somewhat constrained by institutional factors, in particular regarding cooperation with the Environmental Protection Bureaus (EPBs). It is critical to improve collaboration between the TBA and the EPBs (as well as the State Enviromental Protection Agency - SEPA) and ensure effective pollution control in the Basin. It may be possible to enhance cooperation by: (a) enhancing communications and data exchange; (b) joint preparation of a revised long-term environmental management plan for the Basin; and (c) connecting the TBWRPC more strongly to the institutional structure of the SEPA. The TBWRPC should discuss the long-term plan with the Provincial Environmental Protection Bureaus (EPBs) and State Environmental Protection Agency (SEPA) in order to reach a common, integrated implementation plan for the Taihu Basin. (c) Basin-wide Flood and Drought Management Plan (DCA, Schedule 4, Part C,4) TBA has prepared a procedural plan for basin-wide management of flood and drought, including the catastrophic flood, generally in accordance with the Annex 10 of the Staff Appraisal Report. The flood water management and dispatch is essentially based on the floodwater levels regulated in the Taihu Lake and the corresponding water levels in the Taipu and Wangyu River. Procedures for management and dispatch of catastrophic flood, when the regulated flood level in Taihu Lake exceeds El. 4.65m (1999 flood level was El.5.08), have also been prepared with a set of floodwater control levels at various strategic - 15 - points. Flood management organization is well defined in the plan. Limited areas for flood detention are identified. Flood survey and rehabilitation would be carried out by the local governments concemed. TBA would also assess the after-flood situation and damages, and report to the State Flood and Drought Control Command Center for rehabilitation assistance. Drought management procedures, based on the typical year in 1971, have also been adequately prepared in the plan with water diversion from the Yangtze River through the Changsu Complex. The ICR mission recommends that the plan be further refined as discussed with TBA, finalized and disseminated to Jiangsu, Zhejiang and Shanghai for implementation whenever the need arises. (d) Operation and Maintenance Plan TBA has prepared a comprehensive, operation and maintenance plan based on the discussion and materials provided by the three provincial PMOs. The plan identifies the responsibilities of the concerned agencies (including TBA), staff and required funds, and sources of funding. O&M manuals have been satisfactorily prepared with regulations and procedures clearly displayed and documented. Provision has also been included for continued training of staff and operators to upgrade their capabilities. Judging from the current practices and standards of O&M for water resources works in China, the plan is considered to be satisfactory. By March 2002, all Bank-funded components were completed and put into operation, except the Taipuhe Pumping Station and two small size sluice gates. A total of 18 management agencies, 2 in TBA, 11 in Jiangsu, 4 in Zhejiang and I in Shanghai, have been established respectively with the key staff in place for the completed major river works and control structures, etc. To date, all new key complexes constructed under the project are being managed by specifically designated agencies, and provided with staff and funded adequately. O&M manuals have been applied by all implementing agencies. Training of staff and operators was conducted. One encouraging trend noted is the increasing practice of separating management and maintenance. The management and operation will be undertaken by fewer regular staff with multiple tasks. The maintenance will be contracted out through bidding. Improved O&M efficiency and performance has been reported from this practice. However, at the city and county level, there is room to further improve the management operation and annual budget allocation. The TBA and the responsible authorities in the provinces and municipality as well as management agencies at each level, should continue to improve, where necessary, the 0 & M rules and procedures for works and equipment alike, and conduct training for local operational staffs. In addition, the local governments of the three provinces/municipality at different levels should step up their efforts in raising more funds so that the 0 & M activities can be financed timely with adequate amount. (e) Future Operation Plan TBA has prepared the following future operation plans for the Taihu Basin. These plans have been approved by MWR and the State Council for detailed preparation and implementation from 2001-2010. (i) Water Diversion from Yangtze River to Taihu Lake. Due to rapid urbanization and economic growth, water quality in the Taihu Lake continues to deteriorate from Class II to IV in more than half of the Taihu Lake surface area. MWRITBA, with support from the three local governments, is conducting a three-year experiment to study the effect and impact of diverting 2.5 billion cu.m./year of water from the Yangtze River (Class II-III) to Wangyu River and the Taihu Lake. The diverted water would quicken the change of water body in the Taihu Lake. About one billion cu.m. of the diverted flow would be discharged vide the Wangtin Syphon into the Taihu Lake. Water pumping at the Changsu Complex was started on January 30, 2002 and to-date some 1.0 billion cu.m. has been diverted from the Yangtze River with about 0.6 billion cu.m. into the Taihu Lake. Initial monitoring of - 16 - water quality along the Wangyu River and in the Taihu Lake show promising results with COD(mn) and ammonium nitrite lowered. An experiment study report is expected by mid-2004. The ICR mission supports the experimental study of improving water quality through dilution with better quality of water diverted from the Yangtze River. However, the mission recommends the needs of (a) proper economic analysis before any investment, including comparing the alternative cost of controlling and treating the polluting sources; (b) envirornent and ecological impact assessment, including siltation along the Wangyu River and in the Taihu Lake; and (c) participation of the State and Provincial EPA to ensure integral approach to achieve the objectives. (ii) Real-time Water Resources Monitoring, Dispatch and Management System. The TBA has proposed the following systems to be established with an estimated cost of about Y 162 million (US$20 million): (a) main network for data communication and exchange system; (b) water resources data collection system; (c) remote monitoring of water resources work operation and management system; (d) water resources database system; and (e) water resources management decision support system. Detailed preparation on designs and implementation plans are in progress. When completed, the combined system would provide a very modem and scientific mean for basin-wide water resources management. (iii) Upgrading Standards of Flood Control and Protection, Drainage and Water Quality from 2001-2010. The planned comprehensive flood control and protection system would combine engineering and non-engineering measures so as to provide conditions for the sustained socio-economic development of the Taihu Basin. Details are being prepared by MWR for progressive investment up to 2010. 7.7 Overall Borrower performance: Based on the above, the Borrower overall performance is rated as satisfactory. Both the government and PMOs at all levels were fully committed to achieving the project objectives. Despite delayed completion of the project by over three years due to unavoidable circumstances, the Bank-funded main components have been completed except for the Taipu Pumping Station which would be completed by the end of 2002. 8. Lessons Learned Key lessons leamed from implementation of the project include: * Basin Management Organization. There should be one Basin River Management Authority responsible for the overall planning and management of flood protection and water resources. The practice of resolving issues through negotiations is time-consuming and if faster implementation is desired, the Basin Management Authority should be vested under the project with more authority in decision-making involving inter-jurisdiction issues. In addition to the Basin Management Authority, the project involved total of one municipality, 7 cities and 30 counties. Active participation by government leaders at all levels and project beneficiaries is very important in smooth project implementation, especially in raising of local counterpart funds, land acquisition and involuntary resettlement. Effective coordination with governments and government agencies is also important to avoid project delay. * Effective Resettlement Implementation Plan. If a flood control project involves substantial amount of land acquisition and resettlement, a well prepared Resettlement Action Plan and Resettlement Implementation Plan are pre-requisite. Staff responsible for the resettlement should be adequately trained on Bank resettlement guidelines and requirements. Transparent and well disseminated policy, efficient and honest management staff together with participation of the affected people and local - 17 - governments would ensure smooth implementation. Independent external monitoring and evaluation at regular intervals should track the resettlement effort. * Spoil Dump Areas. Widening and deepening of major river channels by dredging involved disposal of large quantities of spoil materials dredged from the river channels. Suitable types of dredging machinery should be carefully reviewed and determined based on river conditions (soil types and discharge distances) to ensure efficient performance of dredging work by contracts. Careful planning and selection of adequate spoil dump areas is important. Reclamation and reuse of the spoil dump areas located on existing cultivated land need longer time for rehabilitation. Moreover, additional reserves should be planned for future spoil dumps areas needed when the river channels are due for maintenance dredging, including feasibility studies on the reclamation and use of such spoil dump areas. Carting away the spoils by barges, though technically feasible, would be costly. * Adequate and Timely Counterpart Fund is Critical. Adequate and timely allocation of counterpart funds is critical for project implementation. Greater efforts should be taken by governments to mobilize and allocate the required funds on time. Required funds should be actually committed and allocated timely to avoid project implementation delay which inevitably lead to increase in project cost and delay in realizing the project benefits. * Bank Procurement Procedures. Procurement training by the Bank and the Basin Management Authority is important. At the beginning of the project implementation, the Bank procurement procedures are usually perceived by most of the project PMOs as complex, cumbersome and time-consuming. However, after training through procurement workshop and carrying out a few procurement exercises, the PMOs find the Bank procurement procedures as efficient and transparent. Thus project entities and local contractors should be exposed to international procurement procedures during the early stage of project implementation. Use of manuals on procurement procedures and management for the guidance of project staff, and local model bidding documents prepared for the Bank project also play an important role. * Project Implementation Period Looking back, the project implementation period of six years seems rather optimistic. Plan for longer implementation periods if (i) the project works cover wide area with large quantity of earthwork carried out under water in major river channels, (ii) some of the water control structures (gates/shiplocks) and pumping stations are really large with large capacity equipment installed, (iii) land acquisition and resettlement of affected are also dispersed along river channels, and (iv) inter-government coordination for works transcending jurisdiction boundaries are complex and time-consuming than expected. An eight-year implementation period would have been more realistic. 9. Partner Comments (a) Borrower/implementing agency: We are very pleased to receive the draft ICR for Taihu Flood Control Project prepared by the ICR Mission. We have reviewed the ICR which is fully accord with the actual situation. The ICR has fairly and objectively evaluated the overall project achievement of objective, outputs, and the impact in each component as well as the experiences and lessons during the implementation of the project. We hereby agree the ICR assessment result comparing with the SAR. The project has been satisfactorily completed achieving the desired objectives with the great efforts of the Borrower and the World Bank. Now it has brought benefit for flood mitigation and water resources management of Taihu Basin. We would like to pass along our appreciation for the most efficient hardworking that was made by all the Task - 18- Team Leaders and the World Bank staff. We believe that the key experiences and some constructive suggestions from the project are valuable for the implementation of the forthcoming project. (b) Cofinanciers: There were no cofmanciers for this project (c) Other partners (NGOs/private sector): None. 10. Additional Information Not applicable. - 19- Annex 1. Key Performance Indicators/Log Frame Matrix Outcome/Impact Indicators Component/ltem/Unit Projected in SAR Actual/latest Estimate Land drainage benefits Unit Area ('000 Yield Output ('000 Area ('000 Yield Output ('000 ha) (ton/ha) ton) ha) (ton/ha) ton) Paddy 80 6.33 506.76 80 7.69 615.2 Wheat 43.2 2.52 108.86 43.2 3.63 156.82 Oil seeds 36.8 1.79 65.69 36.8 2.33 85.74 Late season paddy 80 5.79 463.5 0 0 0 Annual drainage benefits Y million 25 35 Irrigation water 000 M3/year NA 944,000 Arable land for irrigation 000 ha NA 153 Annual irrigation benefits Y million NA 51 Annual flood control benefits million 421.79 909 Water volume supplied for city 000M3/year NA 320,000 Annual water supply benefits Y million NA 76 Water pollution abatement benefit Y million NA 82 Annual volumn of freight 000 ton/year NA 58,000 Annual navigation benefits Y million NA 108 EIRR for total project % 27% 28.00% NPV for total project Y million 2550 4400 - 20 - Outcome/Impact Indicators for Institutional Strengthening A. Studies 1. Basin-Wide Operational Procedures for Flood and Drought Management 2. Three-Year Study of Eutrophication in Taihu Lake 3. Water Quality Study 4. Contingency Plan for Management of Catastrophic Floods 5. The Impact of Pumping Water at the Lowest Permissible Water Level in Taihu Lake 6. Long-Term Environmental Management Plan 7. Post-Project Environmental Assessment 8. Operation and Maintenance Plan for River Basin 9. Flood Damage Assessment and Analysis 10. Review of Institutional Policy and Needs Toward Integrated Basin Management I1. Design Review and Technical Specification Preparation for Taihu Pumping Station B. Models 1. One-Dimensional Hydraulic Operational Model 2. Decision Support System (DSS) Model for Analysis and Simulate Water Quality in Major Waterways of Taihu Basin 3. Water Quality Model Provides Effective and Scientific Means of Tracking Water Pollution and Quality 4. Telemetric Monitoring and Communication System C. Local Training by Project Staff (T7otal 5,435 person-days) 1. Procurement and Disbursement, Project Monitoring, and Evaluation 2. Management for Water Resources Engineering 3. Flood Control Management 4. Project Design, Construction , and Operation and Maintenance 5. Environmental Monitoring 6. Application of Satellite Imagery and Geographic Information System (GIS) 7. English Language D. Overseas Training and Study Tours (Total 1,110 person-days) 1. Use of One-Dimension Water Resources Management Operational Model (Canada), (28 person-days) 2. Use of Computers for Project Management (World Bank, Washington, DC), (84 person-days) 3. Water Project Management and Implementation (USA), (140 person-days) 4. Flood Control and Water Resources Management (The Netherlands), (140 person-days) 5. The Telecommunication and Forecasting System (USA), (140 person-days) 6. Technical Specification for the Large Pumping Station (Japan), (140 person-days) 7. Lake Environmental Management (Canada), (140 person-days) 8. Flood Forecasting System and Project Operation Management (Canada), (112 person-days) 9. Allocation and Management of Water Resources (United Kingdom), (126 person-days) 10. River Basin Water Resources Management (Australia), (60 person-days) - 21 - No specific key performance indicators were determined at appraisal. However, the following physical output indicators used do reflect the key performance of the main work components. Output Indicators: Component/Item/Unit Appraisal Revised Completed Percentage Percentage at MTR at ICR Comp/Appraisal Comp/Revised Taipu River Channelization Land acquisition (ha) 414.7 545.5 779.2 188% 143% Channelization length (km) 44.0 44.0 59.2 135% 135% Earthwork quantity 53.64 43.0 43.0 80% 100% (mil.cu.m.) . Slope protection (km) 142 141.35 141.35 99.5% 100% Taipu Pumping Station I 1 In progress Completing end 2002 (300cms) Control gates/shiplocks 63 70 70 111% 100% Bridges 8 9 9 112.5% 100% Total investment (RMB mil) 760.2 1471.6 1219.3 160% 83% Wangyu River Channelization Land acquisition (ha) 520.3 615.9 648.6 124.6% 105% Channelization (km) 60.0 60.8 62.3 104% 102% Earthwork (mil.cu.m.) 46.33 39.67 38.88 83.9% 98% Slope protection (km) 69.0 73.4 126.3 183% 172% Wangtin siphon (no.) 1 1 1 100% 100% Changsu Complex (no.) I I I 100% 100% Control gates/shiplock (no.) 69 61 61 88% 100% Bridges (no.) 15 20 20 133% 100% Total investment (RMB mil.) 818.97 1151.16 1114.33 136% 96.8% Hangjiahu South Drainage Land acquisition (ha) 538.8 516.3 651 121% 126% Channelization (km) 98.0 182.7 182.7 186% 100% Earthwork (mil.cu.m.) 24.28 21.25 21.00 86.5% 99% Slope protection (km) 98 197.8 198 . 202% 100% Yanguan Pumping Station I I 1 100% 100% Control gates/shiplocks 47 52 52 110.6% 100% Bridges 113 96 96 85% 100% Total investment (Y' mil.) 564.4 1070.9 1070.9 189.7% 100% Taihu Perimeter Dikes Land acquisition (ha) 390.8 353.4 516.3 132% 146% Dikes raised and strength (km) 270 270 272 101% 100% Earthwork (mil.cu.m.) 9.21 8.15 8.15 89% 100% Slope protection (km) 270 272 272 100% 100% Control gates/shiplocks (no.) 100 120 118 118% 98% Bridges (no.) 1 9 9 900% 100% Total investment (Y' mln.) 499.06 734.32 729.34 146% 99% Note. Quantity increased or reduced due to detailed design durng construction and actual local needs - 22 - Annex 2. Project Costs and Financing Project Cost by Component (in US$ million equivalent) Appraisal Actual/Latest -Percentagetof Estimate Estimate Appraisal Project Cost By Component, US$.millidn US$ million Taipu River 99.53 131.78 199 Wangyu River 101.90 117.55 173 Taihu Dikes 67.69 85.52 190 Hangjiahu Drainage 59.36 99.10 251 Monitoring System 6.76 9.16 204 Institutional Development 6.83 11.79 259 Land and Compensation 51.87 66.52 193 Total Baseline Cost 393.94 521.42 Physical Contingencies 63.99 0.00 Price Contingencies 39.39 0.00 Total Project Costs 497.32 521.42 Total Financing Required 497.32 521.42 Project Costs by Procurement Arrangements (Appraisal Estimate) (US$ million equivalent) Expenditure category ICB PrcuemeitMetlodst ICB ~~~NCB Other"NBF oaCs 1. Works 71.40 211.80 75.01 0.00 358.21 (35.70) (79.50) (26.30) (0.00) (141.50) 2. Goods 50.90 2.30 1.50 0.00 54.70 (50.90) (2.30) (1.50) (0.00) (54.70) 3. Services 0.00 0.00 2.50 0.00 2.50 Training & TA (0.00) (0.00) (2.50) (0.00) (2.50) 4. Land Acq. and 0.00 0.00 0.00 64.60 64.60 Compensation (0.00) (0.00) (0.00) (0.00) (0.00) 5. Buildings 0.00 3.30 0.00 0.00 3.30 (0.00) (1.30) (0.00) (0.00) (1.30) 6. Design, supervision & 0.00 0.00 0.00 14.01 14.01 management (0.00) (0.00) (0.00) (0.00) (0.00) Total 122.30' 217.40 79.01 78.61 497.32 (86.60) (83.10) (30.30) (0.00) (200.00) - 23 - Project Costs by Procurement Arrangements (Actual/Latest Estimate) (US$ million equivalent) Procurement Method' Expenditure Category ICB NCB Other2 N.B.F. Total Cost 1. Works 49.60 73.60 137.70 117.20 378.10 (29.80) (44.17) (88.15) (0.00) (162.12) 2. Goods 35.42 0.00 0.00 0.00 35.42 (35.42) (0.00) (0.00) (0.00) (35.42) 3. Services 0.00 0.00 1.80 0.00 1.80 Training & TA (0.00) (0.00) (1.00) (0. 00) (1.00) 4. Land Acq. and 0.00 0.00 0.00 66.00 66.00 Compensation (0.00) (0.00) (0.00) (0.00) (0.00) 5. Buildings 0.00 9.60 0.00 0.00 9.60 (0.00) (5.76) (0.00) (0.00) (5.76) 6. Design, supervision & 0.00 0.00 0.00 30.50 30.50 management (0.00) (0.00) (0.00) (0.00) (0.00) Total 85.02 83.20 139.50 213.70 521.42 (65.22) (49.93) (89.15) (0.00) (204.30) ' Figures in parenthesis are the amounts to be financed by the Bank Loan. All costs include contingencies. a Includes civil works and goods to be procured through national shopping, consulting services, services of contracted staff of the project management office, training, technical assistance services, and incremental operating costs related to (i) managing the project, and (ii) re-lending project funds to local govemment units. Project Financing by C mponent (in US$ million equivalent) Percentage of Appraisal Component Appraisal Estimate Actual/Latest Estimate Bank Govt. CoF. Bank Govt. CoF. Bank Govt. CoF. Taipu River 45.80 6.60 47.10 69.00 5.70 57.10 150.7 86.4 121.2 WangYu River 47.60 28.00 26.30 62.30 24.90 30.40 130.9 88.9 115.6 Taihu Dikes 31.10 4.90 31.80 26.50 3.60 55.40 85.2 73.5 174.2 HangJiahu Drainage 29.00 17.90 12.50 38.70 20.00 40.30 133.4 111.7 322.4 Flood Monitoring System 4.30 2.40 0.00 3.70 5.50 0.00 86.0 229.2 0.0 Land Acquisition 0.00 34.30 17.60 0.00 34.20 32.30 0.0 99.7 183.5 Institutional Development 4.70 2.10 0.00 4.10 7.70 0.00 87.2 366.7 0.0 Physical Contingencies 16.20 11.80 11.30 0.0 0.0 0.0 Price Contingencies 21.30 22.30 20.40 0.0 0.0 0.0 Total 200.00 130.40 166.90 204.30 101.60 215.50 102.2 77.9 129.1 CoF represents local governments of Jiangsu, Shanghai and Zhejiang. - 24 - Annex 3. Economic Costs and Benefits The economic analysis carried for the Implementation Completion Report is technically of a very high standard as well as being comprehensive. It demonstrates that the project is robustly to be preferred to the do nothing alternative. The relevant economic indicators, using 1999 base prices and a discount rate of 12%, are: At Completion At Appraisal NPV Y 4.4 billion Y 2.55 billion Benefit-Cost ratio 2.5 Not used ERR 28% 27% Whilst the economic analysis for the ICR covers a wider range of benefits than that for the SAR, flood control and land drainage benefits still constitute the majority of the benefits (Figure 1). Figure 1: Breakdown of Benefits in ICR Analysis (Present Values) P.iunt &h afd b.wflb E flood oontrol 2% % j jS* land drainage 2% 2% 3% r - irrigation 1% .= U~~~~~~~~~~~~ water supply , *water -- _ environment * navigation ,, 81% Comparison In comparing the economic analyses prepared for the SAR and the ICR, it is fair to note that the analysis for the SAR was prepared under time pressure. Equally, after eight years it is reasonable to expect that the state of the art of economic analysis will have improved. Table 1 outlines the major differences in the form of the two analyses. - 25 - Table 1: Technical differences between the SAR and ICR Analyses 1993 SAR report 2001 ICR report Comments Construction costs Actual construction The 1993 report also applied a shadow exchange rate of predicted. costs. Y5.5/US$ and other adjustment factors to obtain shadow prices. Constant real Growth of 8% per Growth in real wages is one goal of development and hence 0 & M costs. annum in 0 & M logically successful development should be taken to imply costs. increases in real wages. Therefore, such a growth factor ought to be applied to 0 & M costs; the rate of 8% adopted does not look unreasonable given the proportion of 0 & M costs taken up by wages and modest assumptions about increases in labor productivity over time. Flood losses were Flood losses from The depth-damage curves derived from statistical analysis calculated by the 2002 were calculated of the losses in the 1991 flood are consistent with world approximate through modeling experience. method. flood extents and depths for a range of return periods and calculating the expected flood losses using depth-damage curves. Actual reductions in flood losses from 1999 to 2002 were used. Very small The flood modeling Storage reduces losses from all floods; the 1993 study reductions were cover a range of significantly underestimated the flood control benefits of assumned in flood floods up to the PMF the project. losses from extreme (theoretical maximum events (those above flood) under the the nominal 50 year hydrological design standard of conditions protection). experienced in 1954, 1991 and 1999. - 26 - Flood losses were Flood losses are Since the effect of applying a growth rate to benefits or predicted to grow at predicted to grow at costs is to decrease the effective discount rate, they should a rate of 6% until 4% throughout the only be adopted with some caution. Equally, some 2005 and 4% life of the project. assumption about economic growth is built into the thereafter. discount rate. However, to the extent that floods destroy part of the accumulated capital stocks that generate economic growth, it is appropriate to include a growth factor that reflects (a) the proportion of flood losses that is made up of losses to capital stocks; and (b) changes in the susceptibility of capital stocks to flood damage. The SAR reported that experience in China is that flood losses increase at 50-80% of the rate of economic growth and analysis of the losses over the period 1949 to 1991 suggests that, on average, 64% of flood losses is from damages to capital stock. This implies that a 4% growth rate for flood losses is on the conservative side. The only other In addition, irrigation, Additional benefits are evaluated in a conservative way benefit evaluated navigation, water (e.g. irrigation benefits assume continuation of existing was land drainage. supply and cropping patterns rather than a shift to higher valued crops; wastewater treatment a large proportion of higher yields are assumed to arise benefits are included. from increased inputs, such as of fertilizer, and it is assumed that the farmers would increase inputs in spite of the existing risk of a drought and consequent crop failure. No growth is Growth rates applied Land drainage and also irrigation and navigation benefits assumed in land to water supply and have been assumed not to change in real terms over time. drainage benefits. water environment In the case of agriculture, this assumes that there will be no shift away from grain towards high valued crops and/or that agricultural prices fall in real terms. Project life was Whilst the project life The benefits, NPV, benefit-cost ratio and the EIRR project taken to be 50 was taken to be 50 are consequently slightly underestimated in this report. years and the years, the benefits and benefits and costs costs were calculated were calculated over the first 30 years over this period. of the project's life. In both analyses, such effects of flooding on households as health damage, stress, and disruption have been omitted. Whilst it is well-established that these impacts are substantial (Green, et. al. 2000), it has not yet proved to be possible to evaluate them in economic terms in a valid and reliable way. Conclusions and Recommendations * The project has very positive economic returns under conservative assumptions. It is also a good example of an integrated water management project that serves a number of different functions. * The original appraisal was optimistic in terms of the duration of the construction period and the phasing in of the benefits. - 27 - The lessons learned and the resulting recommendations are not unique to this project: * A large number of projects run into problems through inadequate Operations and Maintenance (O & M) expenditure; therefore, attention needs to be given particularly to this area in the appraisal. * The Chinese national codes specify that 0 & M costs should be predicted as proportions of the project's capital cost. This has the advantage that these costs are not underestimated when plans for project financing are being developed. However, there are two limitations. Firstly, there can be a choice between a high capital, low 0 & M option and a low capital, high 0 & M option. But by treating 0 & M costs as a simple function of capital costs, second option will necessarily be preferred. Secondly, it is desirable that a priced maintenance schedule be developed as part of the design process and actual maintenance costs monitored against these predictions. Only in this way can improvements be made in predicting 0 & M costs. * 0 & M costs should be predicted to grow in real termns as a result of growth in real wages as the economy grows. a Sensitivity analyses are often undertaken in a mechanical manner, arbitrarily increasing costs or decreasing benefits by a percentage. However, we already know from the benefit-cost ratio by what proportion either the benefits or costs would have to change to reduce the NPV to zero and hence such sensitivity analyses do not tell us anything we did not already know. Instead, the purpose of sensitivity analysis is to identify the critical parameters that affect the benefits or costs. * Sensitivity analyses should always include delays in completion. With a 12% discount rate, delays in the benefits coming on-stream have a big impact on the NPV and ERR of the project. In this instance, if in the original analysis had it been assumed that there would be no flood control benefits until 1997, the ERR would have fallen from 27% to 19%. Equally, such delays in completion are not unusual. In assessing the benefits of flood control projects, it is the losses from the frequent events that are most critical: in this case, assuming that the return period of the flood that causes no losses is 1.5 years rather than I year reduces the present value of the flood control benefits by 16%. - 28 - Summary of Benefits and Costs Factor 1993 Analysis ICR 2001 Remarks Price base 1991 prices 1999 prices 1999 prices Report time January 1993 November 2001 Costs Projected Actual Capital costs 2.735 billion 5.22 billion 4.3 billion Yuan Yuan Yuan Operation and 40.5 million 71.81 million 49 million Includes electrical Maintenance Yuan/year Yuan/year Yuan' rising at and mechanical (annual amount) 8% per annum replacements in average annual amount Shadow price of Not assessed Included as a cost land Flood control 421.79 million 806 million 909 million Predicted benefits in benefits (annual 2002 amount) Land drainage 25 million 47.79 million 35 million Predicted benefits in benefits 2002 (annual) . Irrigation Not assessed Not assessed Sl million Predicted benefits in benefits 2002 (annual) Industrial water 76 million Predicted benefits in supply benefits 2002 (annual) Waterpollution Not assessed 82 million Predicted benefits in abatement 2002 benefits (annual) _ Navigation Not assessed 108 million Predicted benefits in benefits 2002 .annual) PVof benefits _ 7.4 billion Discount rate of 12% P V of costs 3.0 billion Discount rate of 12% NPV 2.55 billion 4.87 billion 4.4 billion Discount rate of 12% Yuan Yuan . B/C ratio _ 2.5 Discount rate of 12% EERR 27% 28% _ - 29 - Annex 4. Bank Inputs (a) Missions: Stage of Project Cycle No. of Persons and Specialty Performance Rating (e.g. 2 Economists, I FMS, etc.) Implementation Developmernt Month/Year Count Specialty Progress ObJective Identification/Preparation Identification 2 TM/SIE, WRS ]10/91 Preparation 5 TM'SIE, WRS, EA, DS, EE 04V92 Technical 2 EC, EA 07/92 Appraisal/Negotiation 9/92 6 TM/SIE, WRS, EA, PS, EE, HMS Supervision 03/93 / TM/SlE S S 10193 1 TM/SIE S S 04/94 2 TMVSIE, RS S S 09194 2 TM/SIE, DS S HS lO195 3 T.M/SIE, RS, DS S S 05/96 1 TM/SlE S S 1 G196 1 TMiSIE S U 05197 2 TMNSIE, WRS S S 11/97 I TM/WRS S S 06&98 2 TM/'SIE, RS S S 03/99 2 TM/SIE, WRE S S 06/99 1 TM/SIE S S 12/99 3 TMJSIE, WRS, RS S s 06/00 4 TM/SIE, AE, RS, HSS S S 11/00 6 TM/WRS, PA, RS, FHA, PES, S S TA 04101 3 TMJWRS, TMIAE, RS S S I i/Ol 4 TW/AE, TM,/WRS, RS, WRS S S ICR 03/02 6 TMIAE, TMWIRS, RS, S S WRS, FH,A, E . AE = Agricultural Economist PA = Project Analyst E = Environmentalist RS = Resettlement Specialist EA = Economic Analyst TA = Team Assistant EE = Environmental Engineer TM/AE = Task Manager/Agricultural Economist EC = Economist TMISIE = Task Manager/Senior Irrigation Engineer DS = Dredging Specialist TMiWRS = Task Manager/Water Resources Specialist FHA = Flood Hazards Analyst VRE = Water Resources Engineer HMS = Hydraulic Modeling Specialist WRS = Water Resources Specialist HSS - Hydrology System Specialist - 30 - (b) Staff Stage of Project Cycle Actual/Latest Estimate No. Staff weeks US$ ('000) Identification/Preparation 48.8 119.9 AppraisalNegotiation 27.8 73.6 Supervision 109.5 295.9 ICR 11.5 66.4 Total 197.6 555.8 - 31 - Annex 5. Ratings for Achievement of Objectives/Outputs of Components (H=High, SU=Substantial, M=Modest, N=Negligible, NA=Not Applicable) Rating M Macro policies OH OSUOM O N * NA L Sector Policies O H *SUOM O N O NA El Physical O H *SUOM O N O NA a Financial O H OSUOM O N * NA Ij Institutional Development 0 H * SU O M 0 N 0 NA LI Environmental O H *SUOM O N O NA Social LI Poverty Reduction O H OSUOM O N * NA Ol Gender O H OSUOM O N * NA n Other (Please specify) O H OSUOM O N * NA L Private sector development 0 H O SU O M 0 N * NA LI Public sector management 0 H O SU O M 0 N * NA M Other (Please specify) O H *SUOM O N O NA Economic Benefits - 32 - Annex 6. Ratings of Bank and Borrower Performance (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HU=Highly Unsatisfactory) 6.1 Bankperformance Rating I Lending OHSOS OU OHU f] Supervision OHS OS O U O HU OI Overall OHS OS O U O HU 6.2 Borrowerperformance Rating O Preparation OHS OS O u O HU O Government implementation performance O HS O S 0 U 0 HU D Implementation agency performance OHS OS O U O HU O Overall OHS OS O U O HU - 33 - Annex 7. List of Supporting Documents Supervision Mission and ICR Mission's Aide Memoire - November 2001 and April 2002 Reports: (i) FAO/CP consultant (Colin Green) report on Economic Analysis and Evaluation at project completion (ii) FAO/CP consultant (Lars Hein) report on Environmental Management (iii) Post-Project Economic Analysis and Evaluation by Hohai University, Nanjing, China (iv) Resettlement Completion Report by Taihu Basin Authority and National Research Centre for Resettlment, Nanjing, China (v) Post-Project Assessment of Environmental Impacts (Taihu Basin Authority) (vi) Post-Term Environmental Management Plan (Taihu Basin Authority) (vii) Operational and Maintenance Plan (Taihu Basin Authority) (viii) Procedures for Basin-wide Flood and Drought Management, including Catastrophic Flood (Taihu Basin Authority) - 34 - Additional Annex 8. Borrower's ICR Summary IMPLEMENTATION COMPLETION REPORT TAIHU BASIN FLOOD CONTROL PROJECT 1. PROJECT BACKGROUND During the summer 1991,China was struck by severe monsoon floods. Taihu Basin, located in the Yangtze Delta, suffered extensive flooding with total losses more than RMB 10 billion Yuan; 80% in industry (including township and village enterprises) and 20% in agriculture. State Council, ensuring the Basin's security and the economy development, decided to implement the Comprehensive Plan for Integrated Flood Mitigation of the Taihu Basin and requested the financing support from World Bank in October, 1991. As an emergency assistance project, the World Bank mission prepared the proposed project in October 1991. The pre-appraisal was made in March 1992. Appraisal of the project was carried out in July and September 1992. Due to the urgency of the project, the construction of some high priority works began in December 1991. 2. PROJECT DESCRIPTION The Development Credit Agreement and Loan Agreement for Taihu Basin Project (Loan/Credit No. 3560/2463-CHA), signed between People's Republic of China and the World Bank Group in March 1993, financed construction of four major flood mitigation components among the proposed ten components. The other six components would be constructed using local funds from central government, Jiangsu, Zhejiang and Shanghai. The two parts whould be constructed at the same time so that it could ensure the project achieving expected benefits as a whole. The World Bank Loan/Credit was USD 200 million (RMB 1.1 billion equivalent) accounting for 40% of total estimated cost of 2.736 billion RMBY for Taihu Flood Control Project. The project implementation period was from the financial year 1993 to 1997. The project would be completed by June 30, 1997. The closing date of the project account was June 30, 1998. Due to the substantial project cost overrun and the local counterpart funds not provided timely, the progress was affected and delayed. In April 1998, the World Bank approved a 2-year extension of the project closing date to June 30, 2000. When construction of the belated Taipu Pumping Station finally started after three years of study, the World Bank extended in April 2000 the closing date to Dec. 31, 2001. 3. EVALUATION OF PROJECT OBJECTIVES AND COMPONENTS, AND OF QUALITY AT ENTRY 3.1 Original Objectives The main objective includes: a. The project has a series of objectives with the most important one to reduce the depth and duration of flooding resulting from monsoon or typhoon runoff. The main measures to achieve this objective are as follows: - 35 - i. To increase the discharge capacity of the Wangyu River which connects the Taihu Lake with the Yangtze River; ii. To increase the discharge capacity of the Taipu River which connects the Taihu Lake with the Huangpu River, floods flowing into the Huangpu River and into the lower reaches of the Yangtze River; iii. To increase the discharge capacities of all the river channels south of the Lake into the Hangzhou Bay; and iv. To raise the height of the dike surrounding the Taihu Lake so as to permit the safety of flood regulation. In addition to flood control, the other important objectives are: b. To increase the self-supplement capacity of river system's water and improve the water environment of river networks in the basin; c. To increase the raw water supply for Shanghai Municipality; d. To improve the drainage capacity of farmlands; and e. To enhance inland navigation. 3.2 Original Components The project was originally defined to have the following components: i. The Taipu River Component: The Taipu River is 57.6 km in total length, in which 44 km involves widening and deepening. The earthwork to be dredged is estimated at 50 million cu.m.. A 300 cu.m./s capacity pumping station is to be built near the existing control complex. Gates of the existing control complex are to be replaced. A number of bridges across the river are to be built. Sluices and small ship locks are to be built at the mouths of tributaries. ii. The Wangyu River Component: A 60 km long river channel is to be widened and deepened. The planned dredging earth volume is 46 million cu.m.. A control complex with a pumping station of 180 cu.m./s of capacity is to be built where the river joins the Yangtze River and the existing control structure is to be renovated. An inverted siphon is to be constructed to convey the flow of the Wangyu River under the Grand Canal. Bridges are to be built across the river and sluices and small ship locks are to be built where river channels join the river. iii. The Hang-Jia-Hu South Drainage Component: The river channels south of the Taihu Lake are to be widened and deepened, with a total length of 98 km. The planned dredging earth volume is 24 million cu.m.. The control complexes and bridges are to be replaced and two large-sized control complexes and a pumping station with a discharge capacity of 200 cu.m./s are to be built. iv. The Taihu Perimeter Dikes Component: The lake-surrounding embankments to be built, heightened or strengthened total 270 km in length, and the total volume of filled-up earth work will be about 9.2 million cu.m.. v. The Flood Monitoring and Forecasting System: The equipment for hydrological data collection and flood and water quality monitoring in the whole basin is to be updated so as to enhance the operation capacity of the Taihu Basin Authority. - 36 - vi. Technical Assistance for Institutional Development and Strengthening. This primarily for improving the capacity of basin management agencies: A computer simulation system is to be developed for the operation of water resources projects and the water quality studies in the whole basin;. Training is to be carried out and equipment of various kinds is to be provided to strengthen the O&M of facilities and water environment management of river systems. vii. Local funded Components include: * Huxi Diversion and Discharge Component: building 4 pumping stations, widening river channels. New sluices and 42 bridges are to be built on the Grand Canal; * Hongqitang Diversion and Discharge Component: Dredging the channel of the Hongqitang River, building bank protection works and river-crossing bridges; * Wuchengxi Diversion and Discharge Component: Widening river channels, building 4 pumping stations, and number of control gates; * Dongxi-Tiaoxi Flood Diversion Component: Dredging and widening 4 river channels, strengthening sluices, culverts and embankments; * Beipai Component: Dredging the existing river channels, and building structures; and * Lanlugang Dredging Component: Dredging the Lanlugang River channel, and building the Fenhu Lake flood diversion works. 3.3 Quality at Entry No assessment was been made during the project implementation period. The project was based on the "Comprehensive Plan for Integrated Flood Mitigation of the Taihu Basin " approved by the State Planning Commission in 1987. The State Council decided to implement this master plan in October 1991. The World Bank preparation mission reviewed the recommendations of this master plan, considered the economy development of the Basin and practical situation, and reached agreement with governments of Jiangsu, Zhejiang and Shanghai to finance four major components ( Taipu and Wangyu River Channelization, Taihu Lake Perimeter Dikes and Hang-Jia-Hu South Drainage) selected from the original ten components, and one Flood Monitoring & Forecasting System. According the requirement of the World Bank, Taihu Basin Authority, under the guidance of International Department of the Ministry of Water Resources, prepared and submitted the docunents timely, e.g. the Program of World Bank Loan Utilization for Taihu Flood Control Project, the feasibility report on Taihu Flood Control Project. When completed, the ten components would become a key operation system in the Basin for flood control, water-logging and water resources. 4. ACHIEVEMENT OF OBJECTIVE AND OUTPUTS 4.1 Achievement of Objective Taihu Flood Control Project is the first flood control project involving different provinces in China. Although the implementation progress had encountered some delay, the project achieved the original objectives and realized the desired benefit projected in the Staff Appraisal Report. Obiective A: To take measures to reduce the depth and duration of flooding resulting from monsoon or typhoon runoff. Outputs: The four World Bank Loan components have been completed in 2001 and the seven locally-funded components would be completed by the end of 2002. The flood prevention capacity in the - 37 - Taihu Basin will be enhanced to the originally planned 50-year flood, and the local flood prevention and water-logging drainage capacity will reach 20-year flood. It is expected that the the flood control and drainage improvement benefit from the project will reach 22 billion Yuan. Obiective B: To increase the self-supplement capacity of river system's water and improve the water environment in the basin. Outputs: A drought occurred in the Taihu Basin in July 2000. Areas around the Taihu Lake suffered from water shortage.. The Taihu Basin Authority organized related agencies to implement an experiment of emergency diversion from the Yangtze River to the Taihu. During this period, 460 million cu.m. of water was diverted from the Yangtze via the Changshu Complex. Some 222 million cu.m. was delivered to the Taihu Lake, which effectively checked the decline of water level in the Taihu and the continuous breaking-out of blue algae in the Gonghu Lake. Thus improving the water environment in some local areas of the Taihu and areas along the Wangyu River. The experiment on emergency diversion from the Yangtze to the Taihu in 2000 shows that the Wangyu River has the capability of supplying water to the Taihu, not only providing for the water use along the Wangyu River, but also meeting the needs of the areas surrounding the Taihu. Obiective C: To increase the water supply for Shanghai Municipality. Outputs, If a drought of 1971 type occur, The Taipu Pumping Station can deliver a net discharge of 300 cu.m./s to Mishidu in Shanghai to greatly alleviate the water shortage in domestic, municipal and industrial water supply for 13 million people. The supplementary water would also improve the water quality of the Huangpu River, which would be very beneficial to the social and economic development in Shanghai Municipality Obiective D: To improve the drainage capacity of farmnlands. Outputs: Excessively high ground water level is the main obstacle to the growth of crops, particularly winter crops, in the low depression areas in the Hang-Jia-Hu area. The Hang-Jia-Hu South Drainage Component can lower the water level in the river network area of 4000 km2 by 0.4 m. Based on experiences, the yield of rice of present varieties would thus be increased by 3% and that of winter wheat by 12%. The net benefit of this component may reach 34.67 million Yuan annually. Obiective E: To enhance inland navigation. Outputs: After dredged, the Taipu River would have its navigation grade raised from Class V to VI, and the Wangyu River would become a Class V navigation. These two river channels, connecting the Yangtze in the north and the Taihu in the south and the navigation river networks south of the Yangtze, will greatly improve the navigation condition of the river networks, promote reliability and safety of navigation and hence the regional economic development. The direct navigation benefit is estimated at about 107.5 million Yuan. In addition, the component will also produce environmental and tourism benefits. - 38 - 4.2 Project Component 4.2.1 Tainu River Component The Taipu River Component includes the canalization of 57.6 km, dredging of Ximao River 1.6 km, Taipu Sluice Strengthening, and Taipuhe Pumping Station. Also included are some structures on both banks for flood control and navigation, compensation works on both banks, and operation and management facilities. Except for the Taipu River Pumping Station, the main earthwork of this component, started at the end of 1991, was completed at the end 1998. By the end of June 2002, 43 million cu.m. earthwork and 1.219 billion Yuan investment have been completed accounting for 80% and 160% of the SAR target respectively. Taipu Pumping Station was put on hold as its design water level need be further studied and determined. Since 1996, TBA organized experts from Technical and Design Institutes to research and prepare the Study Report on the Lowest Permissible Water Level in the Taihu Lake for Taipu Pumping Station, and the Study Report on Pump Installation Level. The design institute re-prepared the primarily design report. In June 2000 intemational competitive bidding for the civil work of Taipu Pumping Station were invited. Construction of the main structure was finally started on Dec. 26, 2000. 4.2.2 Wangyu River Component The Wangyu River Component includes 60.8 km canalization, Wangting Siphon, Changshu Complex, complementary structures on both banks for flood control and navigation, and management facilities, etc. The Wangyu River Component is aimed at flood control, water-logging drainage and diversion, and improving navigation and water environment. Wangting Siphon and Changsu Complex had been completed separately in Jan. 1994 and June 1997. River channel dredging and bank protection on both sides had been completed according the design standards. By the end of June 2002 39 million cu.m. earthwork and 1.114 billion Yuan investment have been completed accounting for 84% and 136% of the SAR target respectively. 4.2.3 Hang-Jia-Hu South Drainage Component The component includes four main drainage channels of Changshanhe, Nantaitou, Yanguanxiahe, Yanguanshanghe, four outlet control complexes, one Yanguanxiahe Pumping Station, complementary structures and management facilities, etc. The Nantaitou, Yanguanxiahe, Yanguanshanghe compleses have been completed respectively in June 1993, May 1994, and June 1998. By the end of June 2002 21 million cu.m. earthwork and 1.071 billion Yuan investment have been completed accounting for 86% and 190% of the SAR target respectively. - 39 - 4.2.4 Taihu Perimeter Dike The component includes construction new and heightening a total of 282 km of dikes; 217 km were raised in Jiangsu section and 65 km constructed new in Zhejiang section including construction of 108 control structures of various types. The major part of the dikes was completed at the end 1998 and the complementary structures were completed in 2000. By the end of June 2002, 8 million cu.m. earthwork and 729 million Yuan investment have been completed accounting for 88% and 146% of the SAR target respectively. 4.2.5 The Flood Monitoring and Forecasting System Comprehensive monitoring and hydrological data collection in a river basin are critical to the timely analysis and forecast of flood and drought and timely issuance of instructions on emergency management. The Staff Appraisal Report proposes to expand the existing monitoring network to cover the whole basin. The newly expanded monitoring and communication system is composed of: * Tele-measurement systems of eight sub-centers; * A satellite communication network; * An expanded computer network for the Taihu Basin Authority; * A new operational center of flood control for the Taihu Basin Authority. During project implementation, the purchased Shanghai Tiecheng Hotel was not rebuilt into the new operational center of flood control because of the urban renewal construction and resettlement in Shanghai. The new center was thus installed in the office building of the Taihu Basin Authority. The other three components were all completed and put into operation during 1997 to 2000, and through the acceptance. 4.2.6 Institutional Development and Strengthening of the Taihu Basin Management Agencies With the implementation of technical assistance, the research achievements have been applied to water resources management in the basin. The decision support system (DSS) for the water quantity and quality of the Taihu Basin developed jointly by the Taihu Basin Authority, Hohai University and Delft Hydraulics Laboratory of the Netherlands is playing a guiding role for the water resources management in the basin. The one-dimensional hydrodynamic model introduced from Canada has been modified according to the actual conditions in the basin and applied to the model calculation for flood control and water supply in the basin after a set of data transformation programs was designed and five small river network models were developed. Through the project implementation, training and continuous improvement of technical equipment, a large number of professionals have been brought up who are familiar with the management of large-sized flood control projects, intemational bidding, procurement and contract management, and water resources protection and management. These professionals have shown their abilities in this project and will continue to contribute to the implementation of large-sized flood control projects in China with their experiences and talents gained. - 40 - 4.2.7 The Six Local-fanded Components The six local-funded Components are expected to be completed in 2002 and, after completion, they will greatly promote the capacity of flood regulation, storage, diversion and discharge in the areas northwest of the Taihu and the Hang-Jia-Hu Area and promote the capacity of flood control in Hangzhou. 4.3 Net Present Value (NPV) and the Economic Internal Rate of Return (EIRR) The calculation result of the Summary and Appraisal of Economic Benefits of Taihu Flood Control Project shows that the economic intemal rate of return is 76.31%; if the social discount rate is taken as 12%, the economic net present value is 13.516 billion Yuan; benefit-cost ratio.(BCR) is 2.48:1. 5. MAIN FACTORS AFFECTING THE IMPLEMENTATION AND OUTCOME 5.1 Factors outside the control of government or implementation agency In the project implementation, factors outside the control of government or implementation agency are as follows: (i) In 1999, Taihu Basin suffered a catastrophic flood which exceeded 1 in 100 years. The new Taihu Perimeter Dike was damaged at some sections of bank protection and embankments. Local authorities at different levels of the headquarters made great effort to fight the flood so that the loss was reduced to the minimum. This affected the project implementation progress. (ii) From 1994 to 2000, the exchange rate of SDR against USD and USD against RMB has appreciated requiring more local fund inputs which affected the project implementation. 5.2 The Factors Generally under the Governmental Control Positive factors: Positive factors facilitated project implementation are: (i) effective policy guidance from the central and the three provincial governments as well as the support from governments of each cities and countries; (ii) government establishment of the Project Leading Groups and Project Headquarters at all levels was rapid; and (iii) the active participation of village and township governments in project implementation and effective operation of all level Project Headquarters at all levels. Negative factors: During 1993 to 1995, the prices of basic construction materials increased by 6-10%. Government adopted tight money policy and cut down the construction scale, so counterpart funds were constrained.. Because of inflation and increase of engineering quantities, the expenditure exceeded the budgetary estimate, thus affecting the progress in the construction of the main work components. - 41 - 5.3 The Factors Generally under the Control by the Implementation Agency Taihu Basin Authority under the Ministry of Water Resources is the agency for the overall project implementation under the guidance or coordination of the Ministry of Water Resources and other ministries and commission under the State Council. Taihu Basin Authority and Water Resources Bureau of the three provinces established specially the Project Management Office composed of experienced technical professionals to be in charge of the management and implementation of the project. Establishing a series of management system and regulation, the PMOs operated with high efficiency in project implementation, and coordinated well with the World Bank. 5.4 Investment and Costs At appraisal, the budget of the project cost was estimated at 2.735 billion Yuan RMB, or equivalent to US$ 497 million, of which US$ 200 million, equivalent to 1.1 billion Yuan, was the loan/credit from the World Bank. Domestic counterpart fund was 1.635 billion Yuan. Because of the rise in exchange rate and costs of labor and raw materials and the adjustment to the engineering quantities of partial components, the budgetary estimate finally approved by the State Planning Commission and actually implemented was 4.82 billion Yuan. After deducting the loss of 18.70 million Yuan from exchange rate, repayment of 131.22 million Yuan for loan during the construction period and steel material loss of 61.92 million Yuan, the actual investment in the project is 4.609 billion Yuan, or 168% of the cost estimate in the Project Evaluation. 6. SUSTAINABILITY 6.1 Good quality of components Except for Taipu Pumping Station being completed, the Taipu and Wangyu Channelizations have passed the joint acceptance test by TBA and the Water Resources Bureaus of three provinces. Hang-Jia-Hu South Drainage and Taihu Primeter Dike would be accepted before the first half year of 2002 while acceptance documents of above two components are already available. The four major components have been completed with good quality of construction. The components were tested by the real-time 1999 flood and the 2000 drought events, and show high performance and reliability. 6.2 Effective organization system TBA established management agencies responsible for two key complexes (Wangtin Siphon and the Taipu Gate( and Flood Monitoring & Forecasting system. Sixteen agencies, established by three provincial bureaus, were responsible for management and maintenance. These agencies are under the sector management and technical guidance from the provincial Water Resources Bureaus. 6.3 Management and Work Rules and Regulations The components' management agencies have established various managerial systems, e.g. Technical Operation Routine Procedure, Maintenance Specifications, Work Regulations, System of Personal Responsibility, which ensure the performance of flood control components in normal way. Flood control - 42 - check would be taken yearly before and after the flood season, so that the damaged works and facilities would be rehabilitated rapidly. 6.4 Comprehensivefollowing-up projects 6.4.1 Development of Water Resources Information System The Taihu Basin Authority plans to set up an "advanced, practical, safe and reliable" real time water resources monitoring, control and operational system with basin management at the core. The system will be developed with the focus on enhancing the capacity for the management of water resources and the level of modernized basin management. This will provide decision support capacity and ensure scientific and highly efficient decision making for the operation of water resources. 6.4.2 Implementation of diversion from the Yanetze River to Taihu In order to improve the water quality and reduce the bloom of blue algae, the Taihu Basin Authority has started a 2-year experiment to divert water from the Yangtze River to the Taihu via the Wangyu River Component. The main objective is to improve the water environment and supply water to the peripheral areas, thus promoting the optimized operation of water resources projects in the basin, facilitating the water flows, enhancing the self-purification capacity of waters, shortening the water exchange cycle. The experiment would identify and solve key issues for the implementation of diversion from the Yangtze to the Taihu and for the optimized operation of water resources. 6.5 Enhancing design standardsforflood control According to the experiences and problems in the flood control in recent years, it is necessary to revise the design rainstorms and floods, implement additional necessary structural and non-structural measures and consolidate and improve flood control systems. The design standard to be applied in the next phase of flood control and protection is to make the basin capable of preventing 50-year floods from different typical precipitating processes, and oriented to controlling 100-year floods. The structural measures are aimed at promoting the operational capacity of the backbone projects against floods in the basin and giving full play to the potential of engineering system for hamessing the Taihu. The main contents of structural measures include: a. Consolidating the main embankments; b. Further expanding the flood discharge capacity of the Wangyu and Taipu rivers; c. Dredging the channel from the entrance to the Eastern Taihu and the entrance reach of the Taipu River and the channel for discharging flood over design standard in the Eastern Taihu, and conducting comprehensive ecological hamessing of the Eastern Taihu based on results of studies; and d. Using structural measures to enhance the flood prevention standards of cities and regions. The non-structural measures include strengthening the function of the lake management agencies, setting up an authoritative, highly efficient and coordinated basin management institution, a mechanism for flood control in the basin and a whole set of policies, laws and regulations for flood control and disaster relief, so as to realize the transition from flood prevention to flood management. - 43 - The Comprehensive Flood Control and Mitigation Plan in Taihu Basin from 2001 to 2010 has been approved by State Council. 7. PERFORMANCE OF THE WORLD BANK AND BORROWER The World Bank 7.1 Lending During the preparation and implementation of the project, the World Bank's performance was very satisfactory. In 1991 extra-ordinary summer floods hit the Taihu Basin and caused huge losses. In November 1991 the Chinese government requested the World Bank to provide support to the flood control project for the Taihu. The Word Bank responded promptly and actively helped the implementation agency to carry out the identification and preparation for the project, and completed project preparation and appraisal in less than one year. The project was approved in Feb. 1993. Because the progress of implementation was delayed, the World Bank extended the account closing time two times in 1997 and 1999 respectively, in response to the requiest made by the implementation agency. 7.2 Supervision The World Bank sent 17 missions during 1993 to 2000 to check the progress. The project manager Langseng Tay did a very satisfactory job, giving very good suggestions on the implementation and timely giving clear answers to the problems raised by the implementation agency. He had a very harmonial relationship with the implementation agency and provided great help for project implementation. 7.3 The Overall Performance of the World Bank As a first inter-provincial large flood control project in China with a large number of sub-projects and complicated conditions for implementation, the World Bank made very good cooperation with the Chinese government and implementation agency and its overall performance is vary satisfactory. Borrower 7.4 Project Preparation The Chinese government and implementation agency conducted a good behavior in project preparation. The Chinese government attached great importance to the Taihu Lake flood control project, seriously considered the suggestions of the World Bank, which enabled the project preparation to be completed within one year and to pass the evaluation by the World Bank. The implementation agency had carried out planning and designs for the flood control of the Taihu Lake for many years and completed a lot of work in the one year for project preparation, thus creating conditions for the project to pass the evaluation successfully and for the starting of implementation. 7.5 The Performance of the Government The Ministry of Water Resources (MWR), PRC is the agency in charge of this project and played an important role in supervising project preparation and implementation. It also successfully coordinated and unified the understanding of project objectives and contents by all the units and provinces/municipalities in the project and provided great support to the implementation. Particularly, MWR took a scientific and - 44 - prudent attitude to the controversial issue of the Taipu River Pumping Station, and organized related research institutes to make repeated studies, thus making the final decision not only protect the water environment, but also improve the water quality of the Huangpu River. Therefore, the MWR's performance is very satisfactory. 7.6 The Performance of the Implementation Agency 7.6.1 Organization The implementation agency was established according to the decision defined during the project appraisal and negotiations for the World Bank Loan. The Taihu Basin Authority under the Ministry of Water Resources is the agency for the overall project implementation under the guidance or coordination by the Ministry of Water Resources and other ministries and commission under the State Council. Unified management in association with a hierarchical responsibility system was applied. At the provincial and municipal levels project management offices and headquarters for construction were established to implement the tasks assigned by the Taihu Basin Authority and manage the construction using provincial and municipal counterpart funds. 7.6.2 Procurement The procurement was under the unified management of the Project Management Office of the Taihu Basin Authority and this office specifically organized international competitive bidding for the procurement. The project management offices of Jiangsu and Zhejiang provinces and Shanghai Municipality took part in the intemational competitive bidding under the unified arrangement by the Project Management Office of the Authority. Subject to the review and approval by the Project Management Office of the Authority, the relevant province or municipality PMOs manged the national competitive bidding (NCBa). Simplified national competitive bidding (NCBb) was entirely managed by the provincial and municipal project management offices according to the Models for Simplified National Competitive Bidding Document provided by the Taihu Basin Authority. The local provincial or municipal authorities did the implementation of self-managed components. 7.6.3 Disbursement The Chinese government adjusted the exchange rate of US$ to RMB in 1994. The Taihu Basin Authority made adjustment to the disbursement arrangement while adjusting the procurement lists of materials and equipment. Approved by World Bank at the beginning of 1998, the disbursement percentage for civil works was increased from 42% to 60%. Due to investment increase, counterpart funding constrain and coordination for works transcending jurisdiction boundaries, the implementation progress was somewhat slower than the original schedule. 7.6.4 Technical Assistance and Training In the Project Appraisal four topics were listed in the Technical Assistance Plan, in which the model for water management and operation and the three-year study of water quality for the Taipu River System have been completed. The policy review by the implementation agency and the preparation of the design and technical codes for the Taipu River Pumping Station were re-assigned to national experts and have been completed. -45 - In the Project Appraisal the training plan included domestic training, overseas training and overseas study tours. All training tasks have been completed as planned. 7.6.5 Resettlement Both the Resettlement Action Plan (RAP) and the Resettlement Implementation Plan (RIP) were successfully carried out with good results. 7.6.6 Environmental Management TBA has seriously treated the requirements in the Environmental Assessment of Taihu Basin Flood Control Project under the loan of the World Bank. Except that ground water was monitored not so well as expected, others were carried out in line with environment plan. Relatively, good achievements have been made in respects of institutional configuration, environment management, environment monitoring, information processing and study on some schemes etc. All these have played an important role in water resources protection management and pollution regulation, with obvious social and economic and environmental benefits. No significant or unrecoverable impacts occurred during the construction period. 7.6.7 Legal Covenant Compliance As the requirement of SAR, TBA has prepared the following documents: * Post-assessment Report of Environmental Impact * Long-term Planning on Water Environment Management in Taihu Basin * Taihu Basin Flood and Drought Control Dispatching Plan * Report of Costs for Operation, Maintenance and Management of Key Components under Taihu Basin Flood Control Project 7.7 The Overall Performance of Borrower As the first large inter-provincial flood control project in China, it was normal to make appropriate adjustment to the implementation schedule for such a project involving various kinds of complicated problems All the components of the project have been completed with a high quality of construction and have achieved the projected economic benefits. Therefore, the overall performance of the borrower is satisfactory. 8. EXPERIENCES AND LESSONS (1) Because the Taihu Basin Authority paid great attention to project management, conducted training for project managerial personnel of all project provinces/municipality and established a set of perfect managerial systems before the implementation started, the project management was highly effective. The training of project managerial personnel played an important role in the success of the project. Implementation agencies of other projects could learn from the Taihu Basin Authority. (2) The Taihu Basin Authority comprehensively implemented the three systems for project management, i.e., project owner responsibility system, bidding system and construction supervision system, and provided experiences for normalizing the management of large capital construction projects. At the same time, promoted the managerial capacity of all the agencies involved in the project, which has made contribution to promoting market oriented management of large capital construction projects in China. - 46 - (3) Through the project implementation, experiences have been accumulated in the planning of design and construction of large flood control projects. In particular, river channel dredging, and also in the correct selection of machinery equipment for river channel dredging, rational layout of silt discharge areas, reserved silt discharge ground and other key technical issues for accelerating the progress of large river channel dredging engineering. (4) Except that in the period of project preparation some intemational consultants were employed to provide short term consultation, all technical consultation in the implementation period was undertaken by the national experts from the MWR and the East China Exploration and Design Institute, including formulating and reviewing intemational bidding documents, technical specifications, evaluation of bids, consultation on contract negotiation, etc. Through the practices, a large number of national consultants who are familiar with international conventions have been brought up. The technical consultation capacity of the Chinese consulting agencies has also been greatly promoted, valuable experiences have been accumulated. It also shows that the Chinese consulting agencies have the technical consulting capacity for international projects. (5) Main experiences and lessons of resettlement (i) Establish management and implementation organizations for land acquisition and resettlement, make clear the responsibilities of organizations at different levels;widely propagandize policy of land acquisition and resettlement, actively organize communities of PAPs to participate, increase transparency of policy implementation;leaders should be eamest and responsible, justice and clear. (ii) Work out detail implementation plan, adjust timely the compensation standard as per the social-economic development. Intemal and external monitoring and evaluation are very irnportant. It is essential to disseminate the information of resettlement, adjust policy and solve the problems on time during implementation. (iii) The detailed implementation plan should be worked out for those need a long time period, which would be a guideline. In making resettlement plan, policymakers should accurately investigate the scope and assets affected, and properly classify the data so as to make and implement policy. (6) The capacity of Taihu Basin Authority in the planning, coordination, organization, management and decision-making on large flood control projects has been promoted significantly though the successful project implementation. If the implementation agency had more authority in decision-making and decisions for solving problems, the project implementation could be made more quickly and effective. -47 - - 48 - MAP SECTION IRED 31 924 I119' 1250' 12'I 12'2' CHINA >11 ~~~~~~~~~~~~~~~~~~~~TAI HU BASIN FLOOD TangThong ~~ A N G S U ~CONTROL PROJECT / ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I ~~~~~~~~~~~~~~~~~~FLOOD AFFECTED AREAS /1)~~~~~~~~~ \-' -~~~~~~~~~~~~~ 6 ~~~~~1991 AND 1999 .-..- no - K 0jiongjiong 0Nontong 1991 FLOOD AFFECTED AREAS~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~191FLODAFECEDARAS 32 -, / o ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1999 FLOOD AFFECTED AREAS N JuronT .,oi~~~~~~~~~~~~~~~~~' ,0o(.~~~~~~~~~~t~~~ a ISOHYRTS IN MILLIMETRES (1991~~~~~~~~~~~~---- IOYES N ILIMTES 191 to~~~~~,. Il...- 1~~~~~~~~~~~~~~~1 .-ISONTETS IN MILLIMETRES (1999]~~~~~~~~~~~~~~---- SOYES NMI LMEER ( 99 2 ~~~~~~~~~~ / ~~~~~~~~~~~~~II - 'U' F~~~~~~~~~~~~~~~~~~~~~~~~~~~~ROJECT. ~~~' t II.~~~~~~~~~~~~~~~ , to 01299 *~~~~~~~~~~~~~~~~~~~~~~ CONTROL GATES I '? ,. t~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ PUMPING STATIONiS I - + I ~~~~~~~~~~~~~ 'a F0 ~~~~~~~~~~~~pR 'K~~~~~~~~~ , S ~~~~~~ SYPHON - j- I . - -- 'K '' ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~EMBANKMENTS 1% - - - ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~RIVER C-HANNELIZATION '~~~~~'~~~~ Lish % :4 - -*. 0 EXISTING:~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~XSTN ~~~~~~~ K, j N ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~R\ A CONTROL GATES . a. .4. . .WATER SUFFLT INTAKES lOSE - j - -~~~~~~~~~~~~~~~~~~~-------- - NOT FINANCED UNDER THIS PROJECT: 4 K to '
Groupe de la Banque mondiale · Implementation Completion and Results Report
China - Taihu Basin Flood Control Project
Voir le document original
Le texte intégral est hébergé par l’organisation qui le publie. lawenc.com indexe les métadonnées et renvoie vers la source officielle.
Texte intégral
Informations clés
Organisation
Groupe de la Banque mondiale
Type de document
Implementation Completion and Results Report
Pays
Chine
Source
Banque mondiale