China - Third Irrigated Agriculture Intensification Loan Project

Page 1 INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC708 Date ISDS Prepared/Updated: March 12, 2004 I. BASIC INFORMATION A. Basic Project Data Country: China Project ID: P084742 Project Name: Irrigated Agriculture Intensification Loan III Task Team Leader: Richard B. Reidinger Estimated Appraisal Date: November, 2004 Estimated Board Date: June 21, 2005 Managing Unit: EASRD Lending Instrument: Specific Investment Loan Sector: Irrigation and drainage (70%); Agricultural extension and research (20%); Forestry (10%) Theme: Other rural development (P) Safeguard Policies Specialists in the task team: Qingtao Xie Loan/Credit amount ($m.): IBRD: 200 Other financing amounts by source: ($m) B. Project Objectives [from section 3 of PCN] The overall objectives of the Project would be to help raise agricultural output and farm income in the 3-H Basin through environmentally sustainable, modern irrigated agriculture based on improved water/agriculture productivity, and to facilitate farmer adjustment to increased market competition and integration with the global economy after WTO accession. These objectives would be achieved by investments to help intensify and modernize agriculture production, build capacity and carry out institutional change and reform, and strengthen CAD management and procedures. C. Project Description [from section 4 of PCN] IAIL3 would finance sustainable development of modern irrigated agriculture in about 115 counties in 32 prefectures/cities in five provinces: Anhui, Hebei, Henan, Jiangsu, and Shandong , with a total cost estimated at about US$466 million (using an IBRD loan of US$200 million and counterpart funds of US$266 million). Project provinces and proposed project scope and contents are similar to those of IAIL2, but with several innovations and improvements added. The project would have four components: Page 2 (a) Water-saving Irrigation and Drainage. The main activities of this component would be: (i) rehabilitation and upgrading of local I&D systems at the tertiary level and on- farm, application of improved irrigation methods and technologies, and improvement of about 504,878 ha of low-and medium-yield land; and (ii) construction of 298,165 ha of water-saving irrigation facilities to demonstrate real water savings and increased agriculture production per unit of water through integrated irrigation engineering, agronomic and management practices. This component would contribute significantly to development and implementation of innovative actions aimed at improving agriculture production and the efficiency and economic value of water use in irrigated agriculture. (b) Agriculture Intensification and Support. Activities to be financed would include: (i) strengthening and modernization of extension and support services; (ii) agricultural measures to improve water use efficiency; (iii) improvement in quality of agricultural products; (iv) balanced fertilizer use; (v) integrated pest management (IPM); (vi) cropping pattern adjustment to build on local comparative advantages; (vii) improved farmers