China - Rural Water Supply and Sanitation Project

 ICRR 10434 Report Number : ICRR10434 ICR Review Operations Evaluation Department 1. Project Data : OEDID : OEDID: C2336 Project ID : P003587 Project Name : Rural Water Supply and Sanitation Project Country : China Sector : Rural Water Supply & Sanitation L/C Number : Credit 2336-CHA Partners involved : Prepared by : Klas B. Ringskog, OEDST Reviewed by : Tauno K. Skytta Group Manager : Gregory K. Ingram Date Posted : 08/17/1999 2. Project Objectives, Financing, Costs and Components : Objectives : The ultimate objective was to improve the health and productivity of the poorest and most needy inhabitants of rural China. The instrumental objectives were to : (a) develop long-term sectoral and sub-sectoral strategies to prioritize investments at the county level; (b) explore and develop appropriate low -cost service alternatives and make programs sustainable through community participation; (c) establish and maintain properly staffed institutions and provide technical assistance and training to support the investment programs; (d) increase coverage in water supply, sanitation and health /hygiene education through physical construction and technical assistance and training; and (e) promote programs that would enhance community participation and replicability through standards and manuals and through disseminating the lessons learned . Components : (a) The construction of water supply systems to serve some 9 million rural dwellers; (b) Construction of facilities of sustainable systems of sanitary excreta disposal; (c) Provision of health/hygiene education to all project counties through training and the establishment of training systems; (d) Technical assistance and training in support of an on-going UNDP-project to underpin the first three components above; and (e) Institution establishment and project management associated with the first three components above . Costs: Actual project costs were US$167.5 million estimated as of June 30, 1998 vs. the appraisal estimate of US$189.1 million. Financing : The costs were financed by IDA ( US$84.9 million) and from domestic sources (US$82.6 million). The IDA credit was approved in FY92 and closed, fully disbursed, on December 31, 1998, one year behind schedule . 3. Achievement of Relevant Objectives : In general, the ultimate objective to improve health and productivity of the poorest and most needy inhabitants of rural China (by increasing coverage of water supply, supported by sanitation services, health /hygiene education, technical assistance and training ) was achieved to a significant degree . Supervision missions revealed positive villager self-assessments of project results and reported reductions in the incidence of intestinal diseases . Out of the instrumental objectives: (a) long-term sectoral strategies to prioritize investments at the county level were developed through a targeting effort; (b) appropriate low-cost service alternatives and sustainable programs through community participation were developed in the form of design manuals; (c) institutions, technical assistance, and training to support the investment programs still await the final decision by GOC on its preferred institutional arrangements in the water sector from among three options identified; (d) coverage in water supply had risen by 8.9 million inhabitants (99% of the target) at the closing date. In contrast, the sanitation program achieved its targets only partially due to affordability concerns and farmer's strong preference to use nightsoil to fertilize crops . Similarly, the health/hygiene education campaign reached 9.4 million rural inhabitants, but the degree of modification in hygiene habits was not clear-cut; (d) The technical assistance and training was successfully carried out; and (e) Project management was in the main satisfactory . 4. Significant Achievements : The second rural water supply and sanitation project represents a major departure from the first rural water project that invested primarily in larger water systems, that often served towns rather than villages . The second project made a very substantial, and in the end largely successful, effort to target poorer rural inhabitants . Similarly, the effort to develop and effectively implement lower -cost technologies represented a major advance over the first project. 5. Significant Shortcomings : The original targets to increase sanitary excreta disposal were not reached pointing to the ingrained preference of farmers to use fresh nightsoil to fertilize crops . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: Substantial Substantial Sustainability : Likely Likely Bank Performance : Satisfactory Satisfactory Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : (a) Demand for improved latrines is correlated with higher income levels and, in this case, the income levels of the rural poor were too low to support the latrine improvement strategy; (b) Investing in model villages with external financing did not yield the desired demonstration effect in non -project villages where the same external financing was not available; and (c) Training of water plant operators and accountants is critical to ensure sustainability of the systems and financing must be provided to ensure that it will occur . 8. Audit Recommended? Yes No 9. Comments on Quality of ICR : The ICR provides an exhaustive description of the ambitious effort to target poorer rural inhabitants and change their hygiene and sanitary habits . Although the ERR was not calculated, the ICR presents an extensive discussion on economic aspects of the project and efficiency of its implementation .