China - Freshwater Fisheries Project

Doacnt of The World Bank FOR o CIa USE ONL Rspit4o 12311 PROJECT COMPLETION REPORT FRESHWATER FISIERIES PROJECT (CREDIT 1689-CfA) SEPTEMBER 14, 1993 MICROGRAPHICS Report No: 12311 Type: PCR Agriculture Operations Division Country Department II East Asia and Pacific Regional Office Ths doument has a restdcted distibetion and tay be uad by recpiens only in te perormance of dteir oficil dstis Its contents may not othews be disclosed witout World Bank autration.  CURRlENCY EQUIVALENT Cunency Unit = Yuan (Y) Rate of Exchange: Appraisal $1.00 = Y 3.00 1986 $1.00 Y 3.20 1987188 $1.00 = Y 3.70 1989/90 $1.00 Y 4.70 1991 $1.00 = Y 5.20 1992 $1.00 = Y 5.45 WEIGHTS AND MEASURES 1 meter (m) 3.28 feet (ft) 1 kldometer (km) = 0.62 miles 1 hectare (ha) = 15 mu I ton (t) = 1,000kg - 2,205 pounds 1 kilogram (kg) 2.2 pounds PRINCIPAL ABBREVIATIONS AND ACRON!'MS USED ABC - Agricultural Bank of China BAP - Bureau of Aquatic Products FDC - Fisheries Development Corporation FPO - Fisheries Project Office MOA - Ministry of Agriculture MPO - Municipal Project Office PCR - Project Completion Report FISCAL YEAR January 1 to December 31  FOR OMCIAL USE ONLY THE WORLD BANK WaSton. D.C. 20433 U.S.A. September 14, M3 Subect: Projoct Completion Report on China EMb= E:iht &ojxt Lit 1 Attached i the Project Completion Repor on China - Freshwater Fiheries Project pepe by the East Asia and PaciSc Regional Office with Part II contributed by the Boower. Ibe repot prwvides well documented evidence that al physical tare were achieved and that the capacty of inple g agencies and local orgnztions to develop and run freshwater fiseies has been Mhe project outcome Isg satisatory, intutional developmet is sbstana, and ab it b y. A stg conumiment from the Bower and all implemeating acie t ailabit of c e data at Idetcation and prepartion stage, a reativel simple and wel apprsed set of t componens, and good management by the Borower and the Bank explain tbis success While fish prces have gone down because of ineed produtin, efforts to desi to higher value species and to lowe prwuction costs are under way. Ihe PCR ib satifatoty and no audit is plned at this tme. Attachmet ThI documet s retiW dirbuton and may b used by redphnte on, w In the poance of tha "ffil dtss content may not othwise be dslosed wit Wo W Btnk  KOa OFFICIAL IN ONLY PROJECT COqM TION REPORT CHINA 3 ESHVATER ISHERIES PROJECT (CREDiT 1E8cH) TABLE OF CONTENTS Page No. Proboe .................. .........,.................... ... i Evaduation Summay ................................... PART I: PROJECT REVEW FROM BANK'SPERSPECV . 1 1. PrjecM tit .................. 1 2. Bacgond................... 1 3. ProjecaObjecd iv e anD escrip.... ................ 2 4. Project Dei and Orpniation ........................ . 3 Project Imlmnain........................... 6 7. Bak Prformance ............................. . 1S 8. Bonower Perforiance ......... . ............................ . 16 9. PojectReioshs. . .. 0 . ........ ... . . ... .. .* . . . ... 16 10. Consulting services ....................................... . 16 11. Project Documentation and Data ...... ................... . 16 12. LessnsLeanwd ....... *............. 6 .......... 16 PART IL PROJECT REVIEW FROM BORROWPESRSPECVE ... 18 PART m: STATISTICALINFORMATION .................... 27 1. Related Bank Loans and Crets ..................... 27 2. ProaecTimetable .............................. 27 3. Credit Disbursements ........................... . 28 4. Project .......................... . 28 S. Project Costs andFinaig. ....... . 29 6. ProjectResults ................................ 30 7. StatusofCovenats ............................. 31 8. Use of BankResources ................... ........ 32 T Tha doument ha a _ute dibuioan my be =d by s ts on to peufonnan of d.i ofial dutife Its contnts my not o wi be dicod ou WoNdBak atthoritln.  $8g :: g ..~~~ .. 54 W > S* * a.5s~~~ 0 X * [t* * * * * * * 0...... ^ * . . . . . *. 0. * * * * . * * * 0 * * * 0 0 * * ^ U * * * * * . * * . 0 0**** 0  PROJECT COMMLETION REPORT CINA FRESHWATER FISERIES PROJECT (CREDIT 1689-CHA) PREFACE Thi is the Project Completion Repo (PCR) for the Frhwater Fsheries Project in China, fbr which Credit 1689I-CHA in the amount of SDR 52.0 milLon was approed on May 6, 1986. The Credit was closed on June 30, 1992, one year beind schdule. It was fuly disbursed and the last disbursement was on Augt 7, 1992. The PCR was jointy prepared by the Agriculture Opeatns Division of the China and Mong Department, East Asia and Pacific Regional Office (Pfce, Evaluation Summary, ParU I and M), and the Borrower (Part )D. Prepaation of this PCR was sted during the Bank's fin supervision mission of the project in October 1992 and is based, inter alia, on the Staff Appial Report, the Credi, Special Fund, and Project Agreements; upiion rport, corrp e between the Bank and the Bonower; and intenal Dank memoranda  PROJECT COMPLETION REPORT CHINA FRESHWATER FISHERIES PROJECT (CREDIT 1689-CHA) EVALUATION SUIRMMY Objectives 1. The pincipal objecdve of the project was to asst tie Govenment in the development of freshwater fish cture In the vidnity of eight mWor urban centers by improving existing ponds and using land unsuitable for crops for new pond construcin; providing teciques and equipment for pond manaent, and stengthening the support acilities for production and marketing of fish. The project was to include establishment of 11,100 ha of new ponds and improvement of 6,100 ha of existing ponds, constrcon and equipping of support facilities, prvision of w onstruction equipment and vehicles, and taining and technical assisace. The eight project cities were Beijing, Chengdu, Chongqing, Hangzhou, Harbin, Nanchg, Shaunghai and Shenyang. Ipeention Experience 2. The Project was implemented between 1986 and 1992, and the original closing date of June 30, 1991 was extended by one year to June 30, 1992, mainly for the purpose of utilizing more of the t ic assistance component. While the total ptject area was virhuy unchanged between appraisal and compledon, the number of conmplted fish farms was more than the proposed number at appraisal by over 40 peret. The changes made in response to changing or adverse circumstances no doubt yielded better project results in the end, but these inevitably caused some delay during implementation and an increase in the amount and cost of inucturl facilities-roads, power supply lines, wells, pumps and housing for farm management-and man ent esponsibility for the project staff. 3. Two aspects of the pond design and layout were subjects of discussion throughout implementation-separate water suly and drainage systems and Slope protecdon. While separate water supply and drainage arngements offer complete flexibility and independence to individual operators, onsiderations of cost, limnit on available land, high production levels achievable using combinadon supply/drainage canals and present management techniques lead to the conclusion that a separate system is a desirable feature, rather than a necessty, in the present production scheme. However, the single  - iv - supply/dainge system may be the limitng fo iin fuhcr chnolog admces towards monocultu or Intensive cultvain of high valued speces. 4. Embment ope instability presents a serious problem at sotne ses, manly In Sh and to some etet in Nartchang and Ragzhou. A combinaio of fable soils and wind-generted wave acton has resulted in continual erosion of pond enbarkments. In Shanghli, povision of slope prtection for ponds was a featur of reconstrcton sites and may become a necessity for new sites in the future. While documented conclusive evidence i sparse, lmited experiments in India suggest ta planti vetiver on embankmets may be an economically attractve alteative to permaent protectiw cover in suitable climates. Prqjet Results 5. The objectives of the project were met in that the freshwater fish culture was developed in the eight cities; the area under intensive fish culivation has been expanded, land unsuitable for crops has been converted into ponds. and technology and equpment for pond management have been provided. The Government's objective was mainly to increase the supply of fish in the urban markets, and this has been achieved. An underlying objective was to set the stage for furte development of freshwater fisheries by introducing technology associated with more advanced fish culture, i.e. ardficial feeds and water quality controls. This also has been achieved in the prqject areas as evidenced by the initial steps already taken to introduce higher valued species into the stocing stucture. 6. With increasing supplies of fish, prices have delined by as much as 35 percent in some cities. The impact of lower prices has been minimized by changing the structure of production, but increasingly, firms and farmers will have to switch to production of higher valued species in order to sustain profitable opaions. This trend in development has been observed in other Asian countties, and is likely to occur in the project areas. 7. Recalcuae FRRs ranged from 11 percent to 26 percent for new ponds and from 11 percent to 55 percent for improved ponds. Aggregated, FRRs were 20 percent for new ponds and 32 percent for improved ponds, compared to- SAR estimates of 17 percent and 28 percent, respecdvely. Es for new ponds ranged between 12 percent and 31 percent and, for improved ponds, between 12 and >100 percent. Aggregated, ERRs were 25 percent and 45 percent for new and improved ponds, recidvely. Project 8. The project is likely to maintain an acceptable level of net benefits through its economic life. All project ponds were reported to be in full production in 1992 and exected to reach fiul developmeist yields. For the ponds to remain in opating condition, regular maintenance and occasional renewal works will be necessary. Another issue of sustainability relates to site locations. At the time of appraisal, sites had been Selected within the administrative boundaries of the micipitiessome even within districts of  the city proper. With the pac of conomic ie n Ch at in th coata ctie, more finanialy amtti avities may repac fish faring on lands cos to the,city. FIndE *9 and LeMo Learned 9. The project is regarded as highly successfid, boti by tSe borower and the BanL The main rea for this are simple project design, logistca conven , song sense of ownersip and commitment of the implementang agencies, high degre of spport by local govemment and cooperation between the various cities. 10. For further development of the frehwater fishees sector, the itroduction of new and higher-valued species must be evaluated; studies and field resrch shxuld be undertaken on a regional basis to develop feed formulatons, based on the introduction of least-cost formulation (LCF) and substitution of fish meal by other protein ingredients; the mating chain should be improved and modemized in line with the economic reforms emphasizing the role of the private sector and entrpreneurial initiative; and limited trials should be initated on the practicality of substituting vetiver grass for permanent eimbankcment protection.  PROJECT CONMPLTION REPORT CHINA FRESHWAT FISHES PROJECT (CREDIT 1689CHA) PART L PROJECT REVIEW FROM BANK'S PSPECT1E 1. Proect Identy Name Freshwater Fisheries Project Credit No. : 1689-CHA RVP Unit : East Asia and Pacific Region Country China Sector Agriculture Subsector : Fisheries 2. Background 2.1 When the project was approved in 1986, 34 Bank-group projects had been approved in China, of which eleven had been in the agriculture sector. Agricultural leding was geared to focus on developing institutions to provide services to individual famers and to monitor and stimulate change in the pace and pattern of agricultural development. Within a few years of the oft-documented 1978 economic reforms, it had become apparent, that while demand for agricultural products would increase steadily in response to increasing per capita income and moderate popWulation growth, a substantal restrtuing of consumption could be expected to take place. This would involve a mared reduction in direct per capita consumption of grain and a corresponding increase in the intake of meat, eggs, fish, milk, fruits, sugar and vegetables. To meet these expected changes in demand, the Govemment adopted ambitious production targets for the year 2000, including a doubling of fisheries producton, pnmarily through large-scale expansion of freshwater ponds. 2.2 Total fisheries production of 6.2 million t in 1984 allowed an average per capita consumpton of about 5 kg, less than one-tird the world average and low by comparison to many other developing countries, e.g., Bangladesh (8 kg) and the Philippines (35 kg). Development of freshwater culture fisheries, particularly small pond culture, was made a special target because of the limited prospects 1/ for increasing output from capture fisheries, the potential for significant yield incses from exsting 11 Rcent poduction ttsti do not entirely bea ts out (Ame1x.  -2 freshw*ter ponds, and the avalbility of unused or low-lig Iand suihble fo