China - Seed Sector Commercialization Project

Document of The World Bank Report No: 27348 IMPLEMENTATION COMPLETION REPORT (IDA-28860 SCL-40440 TF-29223) ON A LOAN IN THE AMOUNT OF US$57.1 MILLION AND A CREDIT IN THE AMOUNT OF SDR13.8 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR A SEED SECTOR COMMERCIALIZATION PROJECT December 23, 2003 Rural Development and Natural Resources Sector Unit East Asia and Pacific Region  CURRENCY EQUIVALENTS (Exchange Rate Effective September 2003) Currency Unit = Renminbi (RMB) Yuan (Y) Y1.0 = US$ 0.12 US$ 1.0 = Y8.28 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS ADP Agricultural Development Project CPMO Central Project Management Office EASRD Rural Development and Natural Resources Sector Unit, East Asia and Pacific Region, the World Bank ERR Economic Rate of Return FAO/CP Food and Agriculture Organization/World Bank Cooperative Program FRR Financial Rate of Return IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding ICR Implementation Completion Report IDA International Development Association ISTA International Seed Testing Association MOA Ministry of Agriculture MOF Ministry of Finance MTR Mid-Term Review NATEC National Agro-Technology and Extension Center NCB National Competitive Bidding NFYP-SP Ninth Five-Year Plan Seed Program NPV Net Present Value OCC Opportunity Cost of Capital p.a. per annum PBOF Provincial Bureau of Finance PM Person-Month PPMO Provincial Project Management Office QAG Quality Assurance Group SAR Staff Appraisal Report SDR Special Drawing Rights SOE State Owned Enterprise UPOV International Union for the Protection of New Varieties of Plants VAT Value Added Tax WB The World Bank Vice President: Jemal-ud-din Kassum, EAPVP Country Manager/Director Yukon Huang, EACCF Sector Manager/Director Mark D. Wilson, EASRD Task Team Leader/Task Manager: Weiguo Zhou, EASRD  CHINA SEED SECTOR COMMERCIALIZATION PROJECT CONTENTS Page No. 1. Project Data 1 2. Principal Performance Ratings 1 3. Assessment of Development Objective and Design, and of Quality at Entry 2 4. Achievement of Objective and Outputs 3 5. Major Factors Affecting Implementation and Outcome 7 6. Sustainability 8 7. Bank and Borrower Performance 9 8. Lessons Learned 10 9. Partner Comments 11 10. Additional Information 11 Annex 1. Key Performance Indicators/Log Frame Matrix 12 Annex 2. Project Costs and Financing 15 Annex 3. Economic Costs and Benefits 17 Annex 4. Bank Inputs 20 Annex 5. Ratings for Achievement of Objectives/Outputs of Components 22 Annex 6. Ratings of Bank and Borrower Performance 23 Annex 7. List of Supporting Documents 24 Annex 8. Borrower's ICR 25  Project ID: P003638 Project Name: SEEDS SECTOR COMMERCIALIZATION PROJECT Team Leader: Weiguo Zhou TL Unit: EASRD ICR Type: Core ICR Report Date: December 22, 2003 1. Project Data Name: SEEDS SECTOR COMMERCIALIZATION L/C/TF Number: IDA-28860; SCL-40440; PROJECT TF-29223 Country/Department: CHINA Region: East Asia and Pacific Region Sector/subsector: Crops (94%); Law and justice (3%); Central government administration (3%) Theme: Regulation and competition policy (P); Other rural development (P); Personal and property rights (S) KEY DATES Original Revised/Actual PCD: 02/14/1994 Effective: 12/23/1996 12/23/1996 Appraisal: 08/25/1995 MTR: 10/01/1998 01/21/1999 Approval: 06/18/1996 Closing: 06/30/2002 06/30/2003 Borrower/Implementing Agency: PRC/MIN. OF AGR. Other Partners: STAFF Current At Appraisal Vice President: Jemal-ud-din Kassum Russell Cheetham Country Manager/Director: Yukon Huang Nicholas C. Hope Sector Manager/Director: Mark D. Wilson Joseph Goldberg Team Leader at ICR: Weiguo Zhou Rapeepun Jaisaard ICR Primary Author: John Weatherhogg; Xueming Liu (FAO/CP) 2. Principal Performance Ratings (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible) Outcome: S Sustainability: HL Institutional Development Impact: SU Bank Performance: S Borrower Performance: S QAG (if available) ICR Quality at Entry: S Project at Risk at Any Time:  3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: The main project objective was to assist Government to develop a viable commercial seed sector, which would not only produce high quality seeds in sufficient quantity and variety to satisfy farmers' needs but also operate through efficient, self-sustained commercial enterprises. The project objective was clear and well understood by the participating provinces and companies. The objective was fully in line with government policy towards commercialization of state-owned companies, the use of improved technology in agriculture and reform of the seed sector and was consistent with the 1995 World Bank's CAS for China (assisting China to implement market-oriented reforms, particularly the reform and restructuring of state enterprises). Project design covered 14 provinces and about 31 companies. Project design incorporated lessons learned from the previous Seeds Project (Cr.1577-CHA) and the Henan Agricultural Development Project (ADP) (Cr.2242-CHA) as well as projects in other countries, in particular the Seed Development Project (Ln.3891-UA) in Ukraine. All of these showed the benefits from liberalization of seed production and trading, the need for policy changes, the necessity for training and technical assistance in introducing new management systems and the benefits to both farmers and companies from the development of new and improved varieties. This project was proposed in early 2003 by Agriculture and Rural Development Department of the World Bank (WB) to be included in the World Bank's Agricultural Investment Source Book as an Innovative Activity Profile. 3.2 Revised Objective: The original objective remained unchanged throughout project implementation. 3.3 Original Components: The project consisted of three components which were generally well designed to achieve the project objective. The project was prepared with assistance of the FAO/CP over the period 1993-94, appraised in 1995, approved in June 1996 with Loan/Credit effectiveness in December 1996. Policy and Regulatory Framework (US$7.16 million