China - Third Irrigated Agriculture Intensification Loan Project

Page 1 PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB768 Project Name Irrigated Agriculture Intensification Loan III Region EAST ASIA AND PACIFIC Sector Irrigation and drainage (70%);Agricultural extension and research (20%); Forestry (10%) Project ID P084742 Borrower(s) Government of China Implementing Agency State Office for Comprehensive Agricultural Development Ministry of Finance China Tel: 86-10-8819-1812 Fax: (86-10) 88191856 Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Safeguard Classification [ ] S 1 [X] S 2 [ ] S 3 [ ] S F [ ] TBD (to be determined) Date PID Prepared March 12, 2004 Estimated Date of Appraisal Authorization November 15, 2004 Estimated Date of Board Approval June 21, 2005 1. Key development issues and rationale for Bank involvement China's rural agricultural sector is facing a number of critical challenges, including: (a) food security, with production having fallen from its peak of 520 million tons a few years ago to 430 million tons last year; (b) a growing rural-urban income gap, with average income of rural residents only 31% of urban residents in 2003; (c) entry into WTO, which is placing increased competitive pressures on agriculture and farmers, especially grain producers; and (d) environmental sustainability, especially in the North China Plain (also known as the Huang-Huai- Hai River Basins or 3H Basin) which is the country