China - Hebei Agricultural Development Project

Document of The World Bank FOR OFFI NAL USE ONLY epoit No. 8495-CiA STAFF APPRAISAL REPORT CHINA HEBRI AGRICULTURAL DEVELOPMENT PROJECT MAY 14, 1990 Agriculture Operations Division Country Department III Asia Regional Office This doessamau has a I dtscto d a a%d mOY be used bY only in the puteuummuc.. th aefir &a dudies. lbs couuteul my mat odEhewl be discosed i Weld DWuk  CURRENCY EQUIVALENTS Currency Unit - Yuan (Y) US$1.00 - Y 4.72 Y 1.00 - US$0.21 FISCAL YEAR January 1 to December 31 WEIGHTS AND MEASURES 1 meter (m) _ 3.28 feet (ft) 1 kilometer (km) - 0.62 miles 1 hectare (ha) - 15 mu 1 ton (t) - 1,000 kg - 2,209 pounds 1 kilogram (kg) - 2.2 pounds - 2.0 Jin PRINCIPAL ABBREVIATIONS AND ACRONYMS USED ABC - Agricultural Bank of China APC - Acquatic Products Company APF - Acquatic Products Bureau BAG - Bureau of Agriculture BAH - Bureau of Animal Husbandry BOF - Bureau of Finance CAAS - Chinese Academy of Agricultural Sciences CATEC - Country Agrotechnical Extension Centers DAP - Diammonium Phosphate FAO/CP - Food and Agriculture Organization - Cooperative Program GOH - Government of Hebei GVAO - Gross Value of Agriculture Output HAAS - Hebei Academy of Agricultural Sciences HAC - Hebei Acquaculture Corporation ICB - International Competitive Bidding IFAD - International Fund for Agricultural Development IPM - Integrated Pest Management ITC - International Tendering Company, China LCB - Local Competitive Bidding MAP - Monoammonium Phosphate MOF - Ministry of Finance MOFERT - Ministry of Foreign Economic Relations and Trade PLG - Project Leading Group PMO - Project Management Office SO - Statement of Expenditures SMC - Supply and Marketing Corporation WCB - Water Conservancy Bureau  CHINA IFOR OMCIAL USE OnLY HEBEI AGARICULTURAL DEVELOPMENT PROJECT Credit and Project Summary Borrowers People's Republic of China Beneficiary: Hebei Provincial Government Amounts SDR 116.1 million (US$150 million equivalent) Terms: Standard, with 35 years maturity Onlending Terms: From Government to Hebei Provinces 15 years, including five years of grace, with interest at 5.5 percent per annum. Onlending rates to final beneficiaries would be no less than Agricultural Bank of China charges on subloans for similar purposes with similar maturities. Ob3ectives and The project would'alleviate poverty and increase farmer Descriptionst incomes by increasing agricultural productivity and marketa- bility in the Northeast Coastal area and the inland Heilonggang area. The project would (i) optimize conjunc- tive use of surface and well water by rehabilitating irriga- tion structures, sinking of about 9,950 new shallow wells; (ii) set up a water monitoring and evaluation system and develop a water resources plan for the province; (iii) pro- vide needed inputs, improve seed production facilities, strengthen agricultural research and extension; (iv) increase efficiency in sheep and cattle production through ammonification of wheat and corn straws, and plant- ing alfalfa; (v) produce fertilizers (urea and monoammonium phosphate) and promote use of cotton stalk in particle board and fluting paper manufacturing; (vi) strengthen agromachin- ery service stations; (vii) improve efficiency of aquacul- ture investments by rehabilitating 3,467 ha of shrimp ponds, constructing 533 ha of new ponds, modernization of proces- sing facilities and construction of fishponds and scallops chains; and (viii) provide equipment and technical assis- tance, particularly in agroindustries and overseas training programs. Benefits and At full development, the project would produce 793,000 tons Risks: of crops valued at US$175 million, 114,000 tons of fruits valued at US$35 million annually. Incremental production of aquaculture and livestock would be US$12 million. Agro- industries' value added would be US$8 million annually. Per capita income would increase by an average of 125 percent for the 540,000 poor farm families. Significant employment would be created in all components. Employment for women would be notable in the Heilonggang area. No major risks are anticipated. 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.  - ii - Estimated Costs Local ForeiAg Total --