China - Loess Plateau Watershed Rehabilitation Project

Page 1 Document of The World Bank Report No: 25701 IMPLEMENTATION COMPLETION REPORT ( IDA-26160 ) ON A CREDIT IN THE AMOUNT OF SDR 106.3 MILLION (US$ 150 MILLION EQUIVALENT) TO THE PEOPLE'S REPUBLIC OF CHINA FOR A LOESS PLATEAU WATERSHED REHABILITATION PROJECT April 29, 2003 Rural Development and Natural Resources Sector Unit East Asia and Pacific Region Page 2 CURRENCY EQUIVALENTS (Exchange Rate Effective Sept. 2002 ) Currency Unit = Renminbi (RMB) Yuan (Y) Y 1.0 = US$ 0.12 US$ 1.0 = Y 8.3 FISCAL YEAR January 1 December 31 ABBREVIATIONS AND ACRONYMS ERR Economic Rate of Return FAO/CP FAO and World Bank Cooperative Program GIS Geographical Information System ICR Implementation Completion Report ICB International Competitive Bidding ha Hectare hp Horse power IDA International Development Association km Kilometer LIB Limited International Bidding m Meter MIS Management Information System MWR Ministry of Water Resources N.B.F. Non-Bank Financed NCB National Competitive Bidding NGO Non-Governmental Organization O&M Operation & Maintenance PMO Project Management Office PSR Project Status Report QAG Quality Assurance Group R&D Research & Development SAR Staff Appraisal Report SDR Special Drawing Right sq Square YRCC Yellow River Conservancy Commission 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: J. M. Voegele, EASRD Page 3 CHINA LOESS PLATEAU WATERSHED REHABILITATION PROJECT CONTENTS Page No. 1. Project Data 1 2. Principal Performance Ratings 1 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 9 7. Bank and Borrower Performance 10 8. Lessons Learned 12 9. Partner Comments 13 10. Additional Information 14 Annex 1. Key Performance Indicators/Log Frame Matrix 17 Annex 2. Project Costs and Financing 18 Annex 3. Economic Costs and Benefits 20 Annex 4. Bank Inputs 25 Annex 5. Ratings for Achievement of Objectives/Outputs of Components 27 Annex 6. Ratings of Bank and Borrower Performance 28 Annex 7. List of Supporting Documents 29 Annex 8. Pictorial Overview of Loess Plateau and Project Achievements 30 Page 4 Project ID: P003540 Project Name: Loess Plateau Watershed Rehabilitation Project Team Leader: Juergen Voegele TL Unit: EASRD ICR Type: Core ICR Report Date: April 28, 2003 1. Project Data Name: Loess Plateau Watershed Rehabilitation Project L/C/TF Number: IDA-26160 Country / Department : CHINA Region: East Asia and Pacific Region Sector/subsector : Central Government Administration 5%, General Water 50%, General Agr.45% KEY DATES Original Revised/Actual PCD: 07/05/1991 Effective: 10/03/1994 10/03/1994 Appraisal: 10/06/1993 MTR: 11/22/1997 11/22/1997 Approval: 05/26/1994 Closing: 12/31/2002 12/31/2002 Borrower/Implementing Agency : PRC/MININSTRY OF WATER RESOURCES Other Partners: Shanxi, Shaanxi and Gansu Province, and Inner Mongolia Autonomous Region STAFF Current At Appraisal Vice President: Jemal-ud-din Kassum Gautam S. Kaji Country Manager : Yukon Huang Nicholas Hope Sector Manager: Mark D. Wilson Joseph R. Goldberg Team Leader at ICR: Juergen Voegele Juergen Voegele ICR Primary Author: Xueming Liu; FAO 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: HS Sustainability: HL Institutional Development Impact: H Bank Performance: HS Borrower Performance: HS QAG (if available) ICR Quality at Entry: S Project at Risk at Any Time: No Page 5 3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: 3.1.1 The primary objective of the project was to increase agricultural production and incomes on 15,600 sq. kilometers of land in nine tributary watersheds of the Yellow River in the Loess Plateau. A secondary objective was to reduce sediment inflows to the Yellow River by locating the project areas in parts of the watersheds that had suffered severe soil erosion. The project was designed to: (i) create sustainable crop production on high-yielding level farmland thereby replacing the areas devoted to crops on sloping lands; (ii) plant sloping lands to a range of trees, shrub and grasses for land stabilization and production of fuel-wood, timber for construction and fodder; and (iii) substantially reduce sediment runoff from slope lands and gullies. 3.1.2 The project design attempted to break the cycle of poverty and environmental degradation by supporting sustainable agricultural practices and wealth creation. The objectives were clear, well designed, consistent with the Borrower's and World Bank Group's overall strategies at the time of preparation. The problem of erosion in the Loess Plateau was well recognized and there was a strong consensus among all stakeholders about the project objectives (see Section 3.5). 3.2 Revised Objective: 3.2.1 The original project objectives remained unchanged. 3.3 Original Components: 3.3.1 The project has two main components: (1) Land Development and Erosion Control Works; and (2) Institutional Development. The first component was further divided into the following sub-components: (a) Terracing, (b) Afforestation, (c) Orchards, (d) Grasslands, (e) Sediment Control Dams, (f) Warping Land, (g) Irrigation; and (h) Gully control; while the second component was divided into (a) Training, (b) Research, and (c) Technology Transfer. 3.3.2 These components were well designed to achieve the project objectives. They took into account lessons learned from other related projects, integrated local experience, and were based on extensive trials. A participatory approach combining outside expertise and experiences with local knowledge was an integral element in the project design (see Section 3.5). 3.4 Revised Components: 3.4.1 The original components remained largely unchanged throughout the implementation period. However, the Staff Appraisal Report (SAR) targets of dam construction, shrub plantation and grassland development were adjusted and complementary livestock development activities were added at the mid-term review to reflect evolving priorities and better use of funds (see Section 4.2). 3.5 Quality at Entry: 3.5.1 Quality at Entry is rated satisfactory. The project objectives were consistent with the Bank