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Document of
The World Bank
Report No: ICR1376
IMPLEMENTATION COMPLETION AND RESULTS REPORT
(IBRD-47280)
ON A
LOAN
IN THE AMOUNT OF US$91 MILLION
TO THE
PEOPLE‟S REPUBLIC OF CHINA
FOR A
FOURTH INLAND WATERWAYS PROJECT
December 28, 2011
China and Mongolia Sustainable Development Unit
Sustainable Development Department
East Asia and Pacific Region
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CURRENCY EQUIVALENTS
(Exchange Rate Effective April 1, 2011)
Currency Unit = Renminbi
RMB1.00 = US$0.15
US$ 1.00 = RMB 6.55
FISCAL YEAR
January 1-December 31
ABBREVIATIONS AND ACRONYMS
CPS Country Partnership Strategy
dwt
EAP
Deadweight ton (for vessels)
Environmental Action Plan
EIA Environmental Impact Assessment
EIRR Economic Internal Rate of Return
FIRR Financial Internal Rate of Return
GPTD
GOC
Guangdong Provincial Transport Department
(former Guangdong Provincial Communications Department)
Government of China
GPWB Guangdong Provincial Waterway Bureau
GXTD Guangxi Transport Department (former Guangxi Communications Department)
GWh Gigawatt hour
GXWCDC
ICB
Guangxi Xijiang Waterways Construction & Development Co.
International Competitive Bidding
ICR Implementation Completion and Results Report
IWT Inland Water Transport
KWh Kilowatt hour
MIS Management Information System
MOT Ministry of Transport (former Ministry of Communications)
MOF Ministry of Finance
NCB National Competitive Bidding
NEPA National Environmental Protection Agency
NPV Net Present Value
OED Operations Evaluation Department
PAD Project Appraisal Document
PMO Project Management Office
QCBS Quality and Cost Based Selection
RAP Resettlement Action Plan
RMB Renminbi
SOE State-owned Enterprise
TA Technical Assistance
Vice President: James W. Adams, EAPVP
Country Director: Klaus Rohland, EACCF
Sector Manager: Paul Kriss, EASCS
Project Team Leader: Wenlai Zhang, EASCS
ICR Team Leader: Wenlai Zhang, EASCS
CHINA
FOURTH INLAND WATERWAYS PROJECT
Implementation Completion and Results Report
CONTENTS
Data Sheet
A. Basic Information
B. Key Dates
C. Ratings Summary
D. Sector and Theme Codes
E. Bank Staff
F. Results Framework Analysis
G. Ratings of Project Performance in ISRs
H. Restructuring
I. Disbursement Graph
1. Project Context, Development Objectives and Design ............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 6
3. Assessment of Outcomes ............................................................................................ 9
4. Assessment of Risk to Development Outcome ......................................................... 13 5. Assessment of Bank and Borrower Performance ..................................................... 13 6. Lessons Learned ....................................................................................................... 15
7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 15 Annex 1. Project Costs and Financing .......................................................................... 17
Annex 2. Outputs by Component ................................................................................. 19 Annex 3. Economic and Financial Analysis ................................................................. 22 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 26 Annex 5. Summary of Borrower's ICR and/or Comments ........................................... 28
Annex 6. List of Supporting Documents ...................................................................... 39 Maps:
1. IBRD 32887
2. IBRD 32888
3. IBRD 32889
4. IBRD 32890
i
A. Basic Information
Country: China Project Name: Fourth Inland
Waterways Project
Project ID: P077137 L/C/TF Number(s): IBRD-47280
ICR Date: 12/28/2011 ICR Type: Core ICR
Lending Instrument: SIL Borrower: PEOPLE'S REPUBLIC
OF CHINA
Original Total
Commitment: USD 91.0M Disbursed Amount: USD 90.55M
Revised Amount: USD 90.55M
Environmental Category: A
Implementing Agencies:
Guangdong Provincial Transport Department
(Former Guangdong Provincial Communications Department)
Guangxi Transport Department
(Former Guangxi Communications Department)
Co-financiers and Other External Partners:
B. Key Dates
Process Date Process Original Date Revised / Actual
Date(s)
Concept Review: 10/30/2002 Effectiveness: 01/09/2005 01/09/2005
Appraisal: 08/27/2003 Restructuring(s): - -
Approval: 03/25/2004 Mid-term Review: - -
Closing: 01/31/2010 06/30/2011
C. Ratings Summary
C.1 Performance Rating by ICR
Outcomes: Moderately Satisfactory
Risk to Development Outcome: Low
Bank Performance: Moderately Satisfactory
Borrower Performance: Moderately Satisfactory
C.2 Detailed Ratings of Bank and Borrower Performance (by ICR)
Bank Ratings Borrower Ratings
Quality at Entry: Satisfactory Government: Satisfactory
Quality of Supervision: Moderately Satisfactory Implementing
Agency/Agencies: Moderately Satisfactory
Overall Bank
Performance: Moderately Satisfactory
Overall Borrower
Performance: Moderately Satisfactory
ii
C.3 Quality at Entry and Implementation Performance Indicators
Implementation
Performance Indicators
QAG Assessments
(if any) Rating
Potential Problem Project
at any time (Yes/No): No
Quality at Entry
(QEA): None
Problem Project at any
time (Yes/No): No
Quality of Supervision
(QSA): None
DO rating before
Closing/Inactive status: Satisfactory
D. Sector and Theme Codes
Original Actual
Sector Code (as % of total Bank financing)
Ports, waterways and shipping 65 60
Power 10 15
Renewable energy 15 15
Sub-national government administration 10 10
Theme Code (as % of total Bank financing)
Climate change 17 17
Infrastructure services for private sector development 33 33
Rural services and infrastructure 17 17
Water resource management 33 33
E. Bank Staff
Positions At ICR At Approval
Vice President: James W. Adams Jemal-ud-din-Kassum
Country Director: Klaus Rohland Yukon Huang
Sector Manager: Paul Kriss Jitendra Bajpai
Project Team Leader: Wenlai Zhang Graham Smith
ICR Team Leader: Wenlai Zhang
ICR Primary Author: Kek Choo Chung
F. Results Framework Analysis
Project Development Objectives (from Project Appraisal Document)
The objective of the Project (as stated in the Loan Agreement) is to assist the Borrower in:
(1) improving the market access for its southern region by upgrading navigation conditions
on the region's major east-west river and other waterways feeding into the Zhujiang River
Delta region; and
iii
(2) meeting the growing energy demand in Guangdong and Guangxi by harnessing water
flow in two rivers in such region to generate environmentally clean electricity.
Revised Project Development Objectives (as approved by original approving authority)
Not Applicable.
(a) PDO Indicator(s)
Indicator Baseline Value
Original Target
Values (from
approval
documents)
Formally
Revised
Target Values
Actual Value
Achieved at
Completion or
Target Years
Indicator 1 : GX-Waterway traffic (thousand tons) - (i) Baise-Nanning
Value
quantitative or
Qualitative)
814 2,180 - 2,395.9
Date achieved 12/31/2003 12/31/2009 12/31/2009
Comments
(incl. %
achievement)
Tonnage of cargo carried on project waterway almost trebled since the project was
launched, is about 110% of target.
Indicator 2 : GD-Waterway traffic (thousand tons) - (ii) Shaoguan-Qingyuan
Value
quantitative or
Qualitative)
4,900 7,180 - 5,760
Date achieved 12/31/2003 12/31/2009 12/31/2010
Comments
(incl. %
achievement)
Freight carried on the waterway was 80% of target, because the construction of the
new Qingyuan Complex reduced freight volume on the corridor.
Indicator 3 : GD-Waterway traffic (thousand tons) - (iii) Laolonghu Waterway
Value
quantitative or
Qualitative)
1,200 9,300 - 1,334
Date achieved 12/31/2003 12/31/2009 12/31/2010
Comments
(incl. %
achievement)
The target volume of freight could not be achieved due to the delay in completion of
the reconstruction of Lianyao and Longma Bridges. The existing old bridges had
inadequate height clearance to allow the passage of 1,000 dwt vessels.
Indicator 4 : GX-Average barge size (dwt) - (i) Baise-Nanning
Value
quantitative or
Qualitative)
97 152 - 144.7
Date achieved 12/31/2003 12/31/2009 12/31/2009
Comments
(incl. %
achievement)
Average size of vessels using the project waterway is 95% of the target, but has
grown almost 50% since the project appraisal.
Indicator 5 : GD-Average barge size (dwt) - (ii) Shaoguan-Qingyuan
Value
quantitative or
Qualitative)
150 300 - 199
iv
Date achieved 12/31/2003 12/31/2009 12/31/2010
Comments
(incl. %
achievement)
Average barge size using the waterway has grown by 33% since the project
appraisal, but is 66% of target. There is usually a lag for barge operators to replace
old/small barges with larger ones after the waterway is improved.
Indicator 6 : GD-Average barge size (dwt) - (iii) Laolonghu Waterway
Value
quantitative or
Qualitative)
80 500 - 100
Date achieved 12/31/2003 12/31/2009 12/31/2010
Comments
(incl. %
achievement)
Only 20% of target was achieved, as the use of larger vessels on this waterway was
not possible because of the delayed completion of the reconstruction of two existing
bridges. The underneath clearance of the existing bridges limited the maximum size
of vessels to 100 dwt.
Indicator 7 : GX-Powerplant output (GWh) at (i) Naji
Value
quantitative or
Qualitative)
none 253 - 227
Date achieved 12/31/2003 12/31/2009 12/31/2009
Comments
(incl. %
achievement)
90% of target was achieved due to the delay in filling the reservoir.
Indicator 8 : GD-Powerplant output (GWh) at (ii) Xiniu
Value
quantitative or
Qualitative)
none 46 - none
Date achieved 12/31/2003 12/31/2009 12/31/2010
Comments
(incl. %
achievement)
Power generation had not yet started due to the delay in installation of generators
and in the erection of the transmission line.
Indicator 9 : GX-Transit time through lock incl. waiting time (minutes) - (i) Naji
Value
quantitative or
Qualitative)
none 90 - 90
Date achieved 12/31/2003 12/31/2009 12/31/2009
Comments
(incl. %
achievement)
Transit time through lock meets designed performance.
Indicator 10 : GD-Transit time through lock incl. waiting time (minutes) - (ii) Xiniu
Value
quantitative or
Qualitative)
none 90 - 90
Date achieved 12/31/2003 12/31/2009 12/31/2009
Comments (incl. %
achievement) Transit time through lock meets designed performance.
v
(b) Intermediate Outcome Indicator(s)
Indicator Baseline Value
Original Target
Values (from
approval
documents)
Formally
Revised
Target Values
Actual Value
Achieved at
Completion or
Target Years
Indicator 1 : % of civil works completed - Guangxi
Value
(quantitative
or Qualitative)
0% 100% - 100%
Date achieved 12/31/2003 12/31/2008 12/31/2009
Comments
(incl. %
achievement)
Civil works contracts were completed as scheduled although commencement of
main contracts was delayed by about 9 months due to protracted processing for
award of contract.
Indicator 2 : % of civil works completed - Guangdong
Value
(quantitative
or Qualitative)
0% 100% - 98%
Date achieved 12/31/2003 12/31/2008 12/31/2010
Comments
(incl. %
achievement)
98% of target achieved. All Bank-funded contracts were substantially completed,
while a couple of contracts financed by counterpart funds were on-going at the time
of monitoring.
Indicator 3 : % of equipment (by value) contracted – Guangxi
Value
(quantitative
or Qualitative)
0% 100% - 100%
Date achieved 12/31/2003 12/31/2008 12/31/2008
Comments
(incl. %
achievement)
All contracts for the supply and installation of equipment were executed by the
target completion date.
Indicator 4 : % of equipment (by value) contracted - Guangdong
Value
(quantitative
or Qualitative)
0% 100% - 100%
Date achieved 12/31/2003 12/31/2008 12/31/2010
Comments
(incl. %
achievement)
All contracts for the supply and installation of equipment were executed.
Indicator 5 : % of training (person-months) completed - Guangxi
Value
(quantitative
or Qualitative)
0% 100% - 100%
Date achieved 12/31/2003 12/31/2008 04/30/2010
Comments
(incl. %
achievement)
Overall target achieved 100%, while the reduction in overseas training was counter-
balanced by an increase in domestic training.
vi
Indicator 6 : % of training (person-months) completed - Guangdong
Value
(quantitative
or Qualitative)
0% 100% - 80%
Date achieved 12/31/2003 12/31/2008 12/31/2010
Comments
(incl. %
achievement)
Overall target achieved 80% due to a 20% reduction in the person-months of
overseas training.
Indicator 7 : % of resettlement completed – Guangxi
Value
(quantitative
or Qualitative)
0% 100% - 100%
Date achieved 12/31/2003 12/31/2008 12/31/2009
Comments
(incl. %
achievement)
Indicator 8 : % of resettlement completed – Guangdong
Value
(quantitative
or Qualitative)
0% 100% - 100%
Date achieved 12/31/2003 12/31/2008 12/31/2010
Comments
(incl. %
achievement)
G. Ratings of Project Performance in ISRs
No. Date ISR
Archived DO IP
Actual
Disbursements
(USD millions)
1 06/17/2004 Satisfactory Satisfactory 0.00
2 12/22/2004 Satisfactory Satisfactory 0.00
3 04/29/2005 Satisfactory Satisfactory 0.46
4 12/23/2005 Satisfactory Satisfactory 2.46
5 07/19/2006 Satisfactory Satisfactory 14.44
6 01/11/2008 Satisfactory Satisfactory 39.63
7 02/20/2009 Satisfactory Moderately Satisfactory 71.93
8 01/12/2010 Moderately Satisfactory Moderately Satisfactory 83.84
9 06/10/2011 Satisfactory Satisfactory 90.55
H. Restructuring (if any)
Not Applicable
vii
I. Disbursement Profile
1
1. Project Context, Development Objectives and Design
1.1 Context at Appraisal
China‟s vigorous growth has strained the country‟s transport networks and the rate of
growth in cargo had outpaced the increase in transport network capacity. Logistics costs in
China in 1999 were estimated to account for 18% of GDP compared to 9.5% in the USA.
Internal transport costs were so high that coastal provinces enjoyed considerable advantage
in the export of goods over their inland provincial competitors. For the inland provinces to
share in the export boom, either directly or as suppliers of inputs to manufacturers near the
coast, special efforts were required to improve their access to seaports and to overcome
resistance to cooperation across institutional boundaries.
China‟s inland waterway transport (IWT) network at the time of project appraisal was the
world‟s largest in terms of length and freight volume. However, freight density (tons per
waterway km) was only 40 percent of that of the United States and some European
countries due to the low standard of navigation infrastructure; low investment in IWT; and
institutional arrangements that made it difficult to attain coordinated actions to optimize
IWT development. In the three preceding Five Year Plans (1986-2000)1, IWT‟s share of
investment significantly lagged behind its share of the total traffic carried. Under-funding
caused waterway infrastructure to deteriorate, reducing the net size of the navigable
network from 172,000 km in 1960 to 110,200 km by the time of project appraisal.
Shipping services that were not cost effective: many of the vessels were small family-
owned barges and operated as independent units; the few commercial fleets in operation
were provincial or municipal government owned, companies with little incentive to become
more efficient. The greatest impediment to increased operating efficiency and increased
modal share was the lack of incentive to increase vessel size and thereby reduce costs.
Recognizing that IWT could support a much larger volume of China‟s inland transportation,
the Government of China (GOC) took measures under the 9th
Five-Year Plan (1996-2000)
to develop the Pearl River in Guangdong Province and the Grand Canal in Jiangsu
Province, the second and third largest IWT systems. These developments were supported
by the Bank in the form of three inland waterway projects in 1996 (Guangxi, Hunan, and
Zhejiang), 1998 (Guangdong and Jiangsu), and 2001 (Hunan).
The project that is the subject of this report (the Project) was the Bank‟s fourth inland
waterway initiative in China. It combined the dual purpose of improving the inland
waterway networks in Guangxi and Guangdong with meeting power shortages in the
provinces through hydropower generation. The Bank‟s involvement in the Project was in
line with the 2002 Country Assistance Strategy (CAS) which supported China in making
two historic transitions --from a rural, agricultural society to an urban, industrialized
1 China‟s short-term national development plans are based upon five year intervals. Currently China is
delivering the 12th
Five Year Plan (2011-2015).
2
society, and from a centrally-planned economy to a more globally integrated market-based
economy.
1.2 Original Project Development Objectives (PDO) and Key Indicators (as approved)
The objective of the Project was to assist the Borrower in: (a) improving the market access
for its southern region by upgrading navigation conditions on the region's major east-west
river and other waterways feeding into the Zhujiang River Delta region; and (b) meeting
the growing energy demand in Guangdong and Guangxi by harnessing water flow in two
rivers in such region to generate environmentally clean electricity. .
Key indicators for monitoring and evaluating the achievement of the project development
objective included the volume of waterway traffic and the average size of vessels in the
project waterways, power output at the project power plants, and transit time (inclusive of
waiting time) through the project ship locks.
1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and
reasons/justification
There was no revision of the project development objective or key indicators.
1.4 Main Beneficiaries
The main Project beneficiaries would be users of the transport corridor from Yunnan and
Guizhou Provinces through Guangxi to Guangzhou who would be able to take direct
advantage of the water transport from Baise to the Pearl River Delta. The Project covered
some of the poorest areas in Guangdong and Guangxi. Baise and Tianyang counties of the
Guangxi component were both province-designated poverty counties. The Guangdong
component would impact on six of the sixteen poverty counties of the province where the
average GDP ranged between 20-30% of the province. Other inhabitants of the corridor
would also benefit indirectly from the reduced congestion on the competing rail route and
from the creation of new industries attracted by the transport improvements.
1.5 Original Components (as approved)
The Project consisted of the following parts:
Part A: Guangxi
(a) Construction of the Naji Navigation Complex on the Youjiang River between
the cities of Baise and Nanning, including: construction of a 20 meter high dam;
construction of a shiplock; construction of a power plant with a 57 megawatt
capacity and two substations to link the power plant to the Baise grid; acquisition
and installation of turbines and related equipment for the powerhouse; and
acquisition and installation of lock gates.
3
(b) Construction of access roads on both banks of the Youjiang River with a total
length of about 9 kilometers; including the construction of a bridge across the river
at the dam site.
(c) Construction of reservoir protection embankments.
(d) Carrying out of channel improvement, including construction of dikes and
dredging of shoals between Baise and Nanning, and upgrading of navigational aids.
(e) Resettlement and rehabilitation of Displaced Persons in respect of (a) and (b).
(f) Capacity building of the Guangxi Transport Department (GTD), including the
Project Management Office and the Guangxi Xijiang Waterway Construction and
Development Company, and provision of technical assistance, training and study
tours.
(g) Carrying out of studies on (a) the financing, management and operation of
integrated waterways and power generation resources, and (b) the development and
installation of a comprehensive management information and control system.
Part B: Guangdong
(a) Carrying out of channel improvements and regulation works on about 16
kilometers of the Lao-Long-Hu-Waterway, including deepening and widening
of the waterway, replacement of dikes, construction of a diversion channel,
construction of embankment protection, and installation of navigational aids.
(b) Replacement of two bridges over the Lao-Long-Hu Waterway at Lianyao and
Longma.
(c) Carrying out of channel improvements on about 180 kilometers on the middle
reaches of the Beijiang River between Shaoguan and Qingyuan, including
upgrading of navigational aids and construction of auxiliary facilities along the
Beijiang River.
(d) Construction of the Xiniu Navigation Complex on the Lian River between
the cities of Xiniu and Hanguang, including: construction of a 10.5 meter high
dam; construction of a ship lock; construction of a power plant with a 10
megawatt capacity and two substations to link the power plant to the grid
serving the city of Yingde; construction of auxiliary facilities; acquisition and
installation of turbines, lock gates and related equipment for the powerhouse;
and upgrading of navigational aids.
(e) Resettlement and rehabilitation of Displaced Persons in respect of (a) and (d).
(f) Capacity building of the Guangdong Provincial Transport Department (GPTD),
including the Provincial Waterways Bureau and the Project Management Office,
and provision of technical assistance, training and study tours.
4
(g) Carrying out of a study for the development of a waterway electronic mapping
system, and implementation of such system; and a study for the development of
a shiplock management system, and implementation of such system.
(h) Acquisition of service vehicles, service vessels, and surveying and monitoring
equipment.
1.6 Revised Components
There was no revision of the Project‟s components.
1.7 Other significant changes
While there was no revision of project components, some changes were made in the design,
scope and scale, implementation schedule, and Bank loan allocations during project
implementation.
For the Guangxi part of the Project, the significant changes were:
Design Changes
(a) Lowering the lowest navigational water level downstream of the Naji Dam by 0.8 m to
minimize the impact on land use and resettlement behind the next downstream dam
(Yuliang Navigation Complex) whose construction commenced in 2008. This change
required some revisions of the main civil works contract as well as the technical
specifications for the power generators; these added RMB29.07 million to costs.
(b) The foundation level of the lower head of the ship lock was lowered by 4 meters as the
excavation of the foundation exposed a weak stratum at the original design level. In
addition to the extra excavation, casting of some additional 4,000 cubic meters of concrete
was required to bring the lower part of the ship lock to the revised design level.
(c) The installation capacity of the power plants was increased from the original 57
megawatt to 66 megawatt as a result of design optimization.
Scope and Scale
The number of person-months of overseas training was reduced by some 58 person-months
due to government restrictions on overseas travel. This reduction was counter-balanced by
an expanded program in domestic training.
Implementation Schedule
(a) Despite the delay in the award of the main works contract, the Guangxi partwas
essentially completed as scheduled except for some minor finishing works and the
implementation of 3 overseas training and study tours which were completed in the first
quarter of 2010. The slight delay in the completion of the Project did not affect the original
loan Closing Date for the Guangxi part which was January 31, 2010.
Loan Re-allocation
5
The Loan Agreement was amended on December 5, 2008 with retroactive effect to the date
of signing of the agreement (October 24, 2004), the disbursement percentage for Category
1 (a) (Works) from 50% to 70% and for Category 1 (c) (Consultants‟ Services) from 91%
to 100%, and to re-allocate the amount under Category 1 (e) (Unallocated) to the categories
for works and goods. Section 1.01 of the “General Conditions of Applicable to Loan and
Guarantee Agreements for Single Currency Loans of the Bank, dated May 30, 2005 was
also amended on the same date to enable the Borrower to withdraw the proceeds of the loan
to pay for taxes levied by, or in the territory, of the Borrower on goods or services financed
under the loan.
For the Guangdong part of the Project, the significant changes were:
Design Changes
There was a small change in the design of the Xiniu Complex to include a fish passage as
required under the State Environmental Protection Agency (SEPA) clearance of the EA. At
project appraisal, this facility had been dropped in favor of a release of fries on the
reservoir to ensure a more-than-adequate supply of fisheries. SEPA (now the Ministry of
Environmental Protection) did not accept this change and the fish passage was added at the
late construction stage of the Xiniu Complex.
Scope and Scale
(a) The scope of Contract-W3 for channel improvement works on the middle reaches
of the Beijiang River had to be revised due to the river changing its course between
Suoyitan and Jiangwannan.
(b) Due to difficulties in the acquisition of land, Guangdong Provincial Waterway
Bureau (GPWB) decided to drop the construction of the terminal and maintenance station
at Qingyuan from the Project, but complete the on-going land acquisition under the Project.
GPWB will undertake the construction of the facilities outside the scope of the Project.
(c) Land acquisition increased from 56.6 hectares in the Resettlement Plan to 77.8
hectares, an increase of 50%.
(d) Contracts for consulting services for construction supervision had to be extended as
a result of delays in the construction of the Xiniu Complex and channel improvement
works on the Lao-Long-Hu and the middle reaches of the Beijiang River.
Implementation Schedule
As a result of delays experienced in almost all contracts, the closing date for the loan had to
be extended from the original January 31, 2010 to June 30, 2011. Some domestically
funded works in the contracts for the construction of the terminal at Yinde, reconstruction
of the two bridges on Lao-Long-Hu waterway, and the channel marker telemetry system
are expected to be completed by the end of 2011, delaying the achievement of some of the
Guangdong outcome indicators by about a year.
Loan Re-allocation
The Loan Agreement was amended on December 5, 2008 to increase the disbursement
percentage for Category 2 (a) (Works) from 50% to 80% and for Category 3 (c)
(Consultants‟ Services) from 91% to 100% retroactive to the date of signing of the
6
agreement (October 24, 2004), and the amount under unallocated was transferred to works
and goods.
2. Key Factors Affecting Implementation and Outcomes
2.1 Project Preparation, Design and Quality at Entry
Both Guangxi and Guangdong had experience in implementing the previous Bank-funded
IWT projects and took lessons from them into account in the preparation of the project.
Project agencies adopted international practices and Bank policies on procurement,
environmental assessments and resettlement plans. Technical risks associated with design
and construction were mitigated by appointing experienced consultants for design and for
construction supervision. The importance of dam safety was recognized, and a dam safety
panel of experts was established for each of the two dams early in the project cycle to
provide guidance, advice and quality assurance in the design, construction and maintenance
of the dam and related infrastructural works.
Careful assessment was made about the impact of operation of neighboring dams on the
operation of the dams under the Project. The capacity of ports on the project waterways
was examined in details as it was recognized that the upgrading of the navigation channel
would only achieve the desired outcome if loading/unloading facilities at ports on the
project waterways were able to handle vessels of the size for which the channel was
upgraded to accommodate.
It was recognized that market response to the availability of improved IWT would depend
on factors mostly beyond the control of the project implementing entities. In previous
completed inland waterway projects, users responded positively to the improvements, e.g.,
the Bank-financed first Inland Waterways Project, completed in 2001, the average size of
vessels passing through the Guigang ship lock increased by 17% in the first year of
operation and a further 44% in the following year. Both Guangxi and Guangdong therefore
decided not to stimulate the transition to larger vessels but to monitor traffic volumes
against forecasts.
2.2 Implementation
Early in the project cycle, each implementing entity set up a Project Management Office
(PMO) adequately staffed with experienced engineers and various other specialists to
manage the implementation of the Project. Procurement packaging and bid documents for
major contracts were finalized ahead of loan approval in order that bids for major contracts
could be called as soon as the loan was effective.
Both provinces institutionalized the structure for implementing the resettlement program,
including resettlement offices at the provincial, county, and township offices, the design
institutes, as well as the independent monitor. These offices had experienced staff and
necessary equipment. An internal management and monitoring system was already
designed and documented in the draft resettlement action plans.
7
During project implementation, effective mitigation measures to safeguard the environment
were promptly taken to ensure that all environmental indicators were within acceptable
standards and protection targets were protected appropriately.
Guangxi
In Guangxi, the Project was implemented competently by the GXWCDC at a cost
equivalent to US$133.22 million (US$1=RMB8.28), about 10% less than the original
US$148.06 million appraisal estimate. The difference was due largely to the lower-than-
estimated costs of turbines, lock gates and other equipment, channel improvement works
between Baise and Nanning, and institutional strengthening consultant services and training,
which in aggregate yielded a cost saving of about US$27.47 million. These were partially
offset by the increased cost of the larger than appraised site of the administration complex,
and resettlement and land acquisition cost exceeding the estimate by about US$15 million.
The loan amount of US$44.775 was fully utilized.
Project implementation proceeded satisfactorily except for the following difficulties:
(a) Contract award - The award of the main civil works contract took longer than
expected due to the clarifications required by the Bank to understand the reasons to justify
the rejection of the lowest evaluated bid.
(b) Contractor performance - The performance of the main civil works contractor was
constrained by limited resources in finance, manpower and equipment. Works, especially
in the early stages of construction, were slow and the contractor had to be frequently
required to ensure that sufficient labor and equipment were provided at site to meet
contractual obligations.
(c) Unusual weather - A severe storm in July 2005 led to flooding of the construction site.
Torrential rains from abnormally severe typhoons in July 2006 caused a sudden and
unpredictable landslide on the side slope in the ship lock foundation pit resulting in the
death of four laborers.
Guangdong
In Guangdong, project implementation suffered delays due mainly to delayed contract
awards, poor contractor performance, unusual bad weather (the worst flooding in 50 years),
contract variations and difficulties in land acquisition. The root of the problem with the
main contract for the Xiniu Complex appeared to be the contractor‟s low bid price, which
the GPWB believed to be below cost. This resulted in a shortage of labor, plant and
equipment being provided at site. Considerable delays in land acquisition affected the
construction of maintenance terminals at Yinde, Shaoquan and Qingyuan significantly to
the extent that GPWB decided not to undertake the construction of the terminal at
Qingyuan under the Project as it could not be completed by loan closing. Land for the
terminal at Qinyuan has been acquired as part of the Project, but construction of the
terminal would be undertaken outside the Project.
The Guangdong part was completed at the cost of approximately US$102 million, about
91% of the cost of US$112 million estimated at appraisal. Channel improvements at both
8
the Lao-Long-Hu Waterway and the middle reaches of the Beijiang River cost significantly
less than estimated, but this reduction in cost was offset by the increased cost of land
acquisition.
2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization
Indicators established to determine the achievement of the Project‟s development objective
provided the means by which its design, implementation and utilization were monitored
and evaluated.
The key indicators for monitoring the achievement of the navigational aspect of the
development objective included the volume of traffic carried on the waterway and the size
of vessels using it. For power supply, investment efficiency was determined by the cost per
kilowatt of capacity installed and the cost per kilowatt of electricity delivered. Efficiency in
operation and maintenance of the power plants was measured by the hours when the
turbines were available for use. Given the purpose of the Project, the indicators were
appropriate and had been used in the previous three inland waterways projects financed by
the Bank.
Mechanisms for monitoring project implementation included: the review of semi-annual
progress reports; the review of the audited annual financial statements; and two supervision
missions a year.
2.4 Safeguard and Fiduciary Compliance
Fiduciary compliance was satisfactory. Project financial management met acceptable
standards. Comments of independent auditors on annual financial statements, when they
arose, were satisfactorily clarified and corrected.
Compliance with the EMP was generally satisfactory. Environmental monitoring during
project implementation was undertaken by the Guangxi Communications Science and
Research Institute for Guangxi and by the Water Environmental Monitoring Center of Pearl
River Basin for Guangdong. Additionally in Guangdong, Guangdong Provincial Hydraulic
and Hydroelectric Science Research Academy was engaged to conduct water and soil
conservation monitoring to ensure full compliance with the relevant laws, regulations and
contract specifications. Environmental monitoring reports were regularly submitted to the
Bank for review in compliance with the provisions in the Project Agreement (Schedule 2,
B8).
In Guangxi, land acquisition and resettlement were implemented satisfactorily and without
undue hardship. Land acquisition was 864 ha., 4.2% higher than the planned in the
Resettlement Plan (RP); and 131 households were relocated, 82 households more than in
the RP. Total compensation paid came to RMB237 million, significantly higher than the
budgeted amount of RMB66 million.
Living standards of households affected by land acquisition and resettlement has been
found to be improved as a result of the implementation of the RP. At the dam site, the
9
average income per capita increased by 112% between 2003 and 2008 while those in the
reservoir area increased by 32%. All relocated households were able to build brick-
concrete houses.
In Guangdong, the total area of land acquired was some 82.4 ha., about 46% more than the
planned 56.6 ha. in the RP; the increase in land acquisition was localized in Zhangwu and
Hetou villages. Compensation rates were generally higher than provided in the RP, and the
overall resettlement cost was about 31% more than the planned sum of RMB56 million.
Living standards of households affected by resettlement was improved by about 24% and
income per capita by about 29%. There was a noticeable shift in the composition of
household income from agriculture, forestry, fishing and animal husbandry to retails and
services.
2.5 Post-completion Operation / Next Phase
The Guangxi part of the Project, upon completion, is being operated and maintained by
GXWCDC, which is already operating similar complexes at Guigang and Guiping. Income
generated by GXWCDC will be sufficient to meet operating and maintenance costs, as well
as the repayment of the loan and other financial obligations.
Following the Naji development, GXWCDC has undertaken the construction of another
navigation complex at Yuliang, and is also embarking on a further phase of development of
its Guigang Complex with the construction of a second ship lock.
For the Guangdong part of the Project, GPWB has assigned an operating unit for the
operation and maintenance of Xiniu Complex upon its completion. The local waterway
bureaus are responsible for routine maintenance and dredging of the improved Beijiang
River and Lao-Long-Hu Waterways, with the earmarked annual budget allocated by the
provincial government.
3. Assessment of Outcomes
3.1 Relevance of Objectives, Design and Implementation
The Project's development objective remains relevant in the context of China's present
transport needs demonstrated by its increasing share of the country‟s freight market.
Between 2004 (the year of appraisal) and 2008 (the year for which the most recent
published data is available), IWT freight traffic intensity in ton-kms increased by 22.5%
annually which is higher than the national total annual increase of 17.4% .
10
China Freight Transport by Modes (2004-2008) (in units of billion ton-km)
Year Railways Highways Waterways Civil
Aviation Pipelines Total
Ocean Coastal IWT Subtotal
2004 1,928.88 784.09 3,225.50 698.88 218.44 4,142.87 7.18 81.5 6,944.50
2005 2072.6 869.32 3,855.20 849.49 262.57 4,967.23 7.89 108.8 8,025.80
2006 2,195.44 975.42 4,257.70 988.3 302.5 5,548.57 9.43 155.1 8,884.00
2007 2,379.70 1,135.47 4,868.60 1204.6 355.3 6,428.48 11.64 186.6 10,141.90
2008 2,510.63 3,286.82 3,285.10 1,326.06 415.15 5,026.27 11.96 194.4 1,1030.08
Average
Annual
Growth
7.5% 79.8% 0.5% 22.4% 22.5% 5.3% 16.6% 34.6% 14.7%
Source: China Statistic Yearbook, 2009
IWT is the least energy intensive, most cost effective, and lowest contributor to green
house gases of all transport modes. IWT is also essential to the promotion of greater
efficiency, productivity and competitiveness in the use of inland water resources in
Guangxi and in Guangdong. The Project is consistent with the strategic objective of Pillar
3 (Managing Resource Scarcity and Environmental Challenges), as well as Pillar 4
(Financing Sustained and Efficient Growth), of the Bank‟s Country Partnership Strategy
(CPS) for China for 2006-2010. The project objective and design are also expected to be
still relevant to the most current government strategy and the new CPS for 2011-2015.
3.2 Achievement of Project Development Objectives
With the successful completion and operation of navigation and hydropower facilities
along the Pearl River as originally designed at appraisal, project objectives (see Section
1.2) are largely met.
The main economic benefits identified at appraisal included: (a) the reduction in transport
costs for existing traffic flows on the river; (b) the consumers or producers surplus
associated with traffic diverted from road or rail to river transport, together with newly
generated traffic; and (c) the social and economic gains from increased electricity
generation and consumption.
Guangxi Component. Traffic on the project waterway in Guangxi, based on data available
to date, has exceeded expectations, both in volume and in the average size of vessels using
the waterway. The Naji Complex has supplied the local region with additional clean
renewable energy of about 273 GWh per year.
Guangdong Component. IWT traffic under the three sub-components (Laolonghu sub-
component, Beijiang River sub-component, and the Xiniu sub-component) in 2010 was
only 1.3 million tons, 5.76 million tons, and 15,000 tons respectively; this was lower than
the 2.60 million tons, 7.6 million tons, and 15,000 tons projected in the PAD. Most of the
indicators are below the targets, but will catch up once the on-going works on the
reconstruction of two existing cross-river bridges (that have insufficient clearance), and the
11
Xiniu Complex are completed; these currently make the river section virtually not
navigable.
The installation of the turbines with a total generation capacity of 10 MW was not
completed until 2011. Electricity planned to be generated in 2011 is only 7.73 GWh, much
lower than the projection of 46 GWh in the PAD. Based on the latest data, projected power
generation will be 30.9 GWh in 2012 and 38.7 GWh from 2013. The lower-than-designed
electricity generation was due to lower-than-designed water elevation behind the dam.
With the full completion and operation of the infrastructure hydropower generation will
pick up to the designed level.
The Project will also achieve global environmental benefits due to avoided CO2 emission
from both transport energy savings and hydropower generation, which were not included in
EIRR calculation at project appraisal. In addition, as envisaged at appraisal, the Project has
particularly benefited poor regions and poor populations through providing local economic
development opportunities and improving the living standard of local populations.
3.3 Efficiency
Economic. With the successful completion and operation of the navigation and
hydropower facilities along the Pearl River as appraised, the project‟s objectives of
improving the market access and IWT and generating environmentally clean electricity are
largely met.
Guangxi Component. Cost-benefit analysis conducted at appraisal estimated an EIRR of
18%, as reported in the PAD. Following exactly the same valuation approach and using the
same assumptions of travel cost saving per ton and the economic benefit of electricity
generated per KWh, the EIRR at completion is 15.8%. The slightly lower EIRR is mainly
due to the two-year delay in electricity generation at full capacity.
Guangdong Component. The same approach was applied to the economic analysis of three
sub-components in Guangdong – Laolonghu Waterway, Middle Reach of Beijang River,
and Xiniu Complex. The recalculated EIRR of the three sub-components at completion are
26.5%, 24.8%, and 5.1%, compared to the appraisal estimates of 51.0%, 24.1%, and 12.8%,
respectively. The aggregated EIRR of the three sub-components is 15.3%, which may be
considered acceptable despite being lower than the appraisal estimate of 23.0%.
Financial. Since the principal objective of the Project is the provision of public goods, the
low financial return (or even a net loss) of the government-owned project implementing
entities may be considered acceptable.
Guangxi Component. A FIRR of 3.4% was estimated at appraisal under the assumptions
that electricity sale price would be RMB0.35 per KWh and the ship lock fee would be
RMB0.40 per ton. However, these assumptions are no longer valid due to: the recent
government decision that there would be no ship lock fee along the entire Xijiang River
section in Guangxi in order to promote IWT; and the lower electricity sale price of
RMB0.29 per KWh (six cents lower than the price proposed at project appraisal). The
12
recalculated FIRR, using the latest data and projection of power outputs and sale prices,
shows a decrease from 3.4% to 0.74%.
Guangdong Component. The PAD estimated a negative FIRR. The recalculation in ICR
continues to show a net financial loss to the operator of the Xiniu complex. However, the
government has agreed to cover the financial losses of the complex from its annual budget.
3.4 Justification of Overall Outcome Rating
The performance indicators for Guangxi part are achieved satisfactorily, while the
indicators for the Guangdong part of the Project fall short of some of the targets established
at appraisal due to the delayed completion of the relevant sub-components. Therefore, the
overall outcome of the Project is considered moderately satisfactory based on:
(a) the most achievement of Project‟s development objectives;
(b) the consistency of the Project‟s development objective with the Bank's strategy for
improving transport services to alleviate bottlenecks and China's policy and plan for
increased economic development in interior regions;
(c) the achievement of acceptable economic and financial efficiency;
(d) attention given to lessons learned from the previous inland waterway and other
transport projects in the design of the Project, and
(e) compliance of the Project with Bank safeguard and fiduciary policies.
3.5 Overarching Themes, Other Outcomes and Impacts
(a) Poverty Impacts, Gender Aspects, and Social Development
The gender aspect of the Project was taken into account in the design of the Project,
particularly in the context of project impacts, mitigation measures and ethnic minority
groups. They were included in the terms of reference of the social assessment and
resettlement planning exercises. The social assessments conducted focus group discussions
with women and interviewed women representatives of the affected communities.
The poverty impact of the Project was very positive. In Tianyang County, which was
directly impacted by the Naji development, income per capita of the farmers rose from
RMB1,923 in 2004 to RMB3,579 in 2009 and of urban dwellers from RMB5,546 to
RMB14,623. In the areas affected by the Guangdong part of the Project, average income
per capita rose 28% to RMB4,690.
(b) Institutional Change/Strengthening
The impact of the Project on institutional development in the sector has been positive. As
with the previous inland waterway projects, with the improvements in the navigational
channel and increased capacity of the ship lock, larger vessels are being used. Measures to
speed up the transition to larger vessels by standardizing the type and size of vessels using
the waterway and discouraging the use of smaller vessels are being implemented. Tows of
two to four barges, a more efficient and cost effective form of operation, have begun to be
used. A shift from small family-based ownership to larger business enterprises is evident.
13
TA studies under the Project have been conducted efficiently, and their outputs have been
adopted into the management practices of the project provinces. GXWCDC has agreed to
share the impressive features and capability of the real-time system developed by the study
on the management of integrated water resources with other provincial IWT enterprises.
The international and domestic training programs under the Project have been well
implemented, and have increased capacity of staff.
(c) Other Unintended Outcomes and Impacts (positive or negative)
There were no unintended outcomes or impacts.
3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops
No beneficiary survey or stakeholder workshops were conducted in the Project.
4. Assessment of Risk to Development Outcome
The risk to development outcome is negligible to low. Central and provincial governments'
commitment to the Project continues to be strong. Economic conditions in the country and
in both provinces have remained robust. Local staff has been adequately trained to manage
and operate the Complexes. Traffic on the Guangxi waterway has met expectations,
reflecting improvement in services and reduction in transport cost; however, the volume of
traffic carried on the Guangdong waterways and the expected increase in vessel size have
not yet met expectations. Increased attention is being paid to the maintenance of the
waterway transport facilities in recent years. The risk that the development outcome would
not be sustained, either in terms of the demand for the facilities provided, or in terms of
the ability and capacity of the executing agencies to properly manage, operate, and
maintain them, is low.
5. Assessment of Bank and Borrower Performance
5.1 Bank Performance
(a) Bank Performance in Ensuring Quality at Entry
Bank performance in ensuring quality at entry was satisfactory.
The design of the Project was technically sound. Lessons learned in past Bank financed
projects were taken into account. Risks were identified and appropriate measures were
taken to mitigate them. Care was exercised in preparing the PMO for project
implementation. Key indicators selected to monitor and evaluate the performance and
outcome of the Project provided the focus on project implementation.
The Resettlement Action Plan (RAP) was comprehensively developed and included
processes for consultation and participation of the various stakeholders in the planning,
adverse impact analysis, legal framework for resettlement, strategy and implementation
program for compensation, relocation and livelihood development, monitoring, and airing
and resolution of grievances.
14
Environmental protection measures were adequate and included the control of air, water
and noise pollution, regular sprinkling of roads in the project sites, restricting the speed of
vehicles in the work area to 20 km/hr, limiting the height of wastes carried on trucks to
prevent over-spilling, and the construction of sedimentation tanks and sewage treatment
facilities to ensure the outcomes met the required standards.
(b) Quality of Supervision
The quality of Bank supervision was moderately satisfactory.
Regular implementation review missions focused on the quality and progress of works and
their impacts on the achievement of the development objective. Issues that emerged during
implementation were attended to efficiently and promptly. The Bank task team contributed
positively in helping to overcome delays caused by contractors‟ financial, manpower and
technical resources. These efforts were appreciated by the PMO as well as the contractors.
Compliance with safeguard and fiduciary policies was closely monitored and
recommendations for improving the implementation of the EMP and the RAP were
provided whenever necessary. Regular reviews of the work undertaken by independent
monitors ensured the proper implementation of the plans and measures for environmental
and social safeguards.
(c) Justification of Rating for Overall Bank Performance
Overall Bank performance was moderately satisfactory, based on performance in preparing
and supervising the Project.
5.2 Borrower Performance
(a) Government Performance
Government performance was moderately satisfactory, based on its commitment to the
Project. Ministry of Transport (MOT) provided technical support and subsidy to GXTD
and GDTD/GPWB in the preparation and implementation of the Project. At the provincial
level, the Project was considered one of the key projects in the provinces and was given a
high level of attention. GXTD and GPTD exercised close supervision on project
implementation, with senior management personally participating with the Bank task team
in regular review missions, and provided effective co-ordination between the project
implementing entity and other governmental agencies. The commitment of the transport
departments of both project provinces was evident by their interventions to overcome
obstacles encountered in project implementation that were sometimes beyond the control of
the implementing agencies.
(b) Implementing Agency or Agencies Performance
The performance of implementing agencies was moderately satisfactory.
GXWCDC was highly motivated and completed the Project competently within budget and
schedule. The GPWB project team was relatively young but made it up with dedication and
perseverance. Cooperation between the implementing agencies and the Bank was very
good; consultations were extensive and meaningful; and issues were promptly raised and
15
jointly resolved. Both GXWCDC and GPWB discharged their fiduciary responsibilities
conscientiously and correctly. Compliance with Bank requirements during project
implementation was satisfactory.
(c) Justification of Rating for Overall Borrower Performance
Overall Borrower performance was moderately satisfactory, taking into account both
Government and implementing agency performance.
6. Lessons Learned
6.1 The following lessons and conclusions may be drawn from the Project:
(a) Inland water transport in China is a viable transport mode. The increase in traffic
carried on the project waterways reflects the overall gain in market share in the
freight transportation especially for low-value commodities in large consignments
from and to origins alongside or near a river or inland waterway. During the
project implementation period (2004-2008), IWT freight traffic intensity in ton-kms
increased by 22.5% annually which is higher than the national total annual increase
of 17.4%.
(b) Measures to increase efficiency and cost effectiveness in the sector are well
received by the market. Users responded positively to the Project by increasing the
size of vessels operating in the project waterways.
(c) Developments similar to the Project can be replicated taking advantage of
experience gained in inland waterway network planning, macro-economic
considerations, technical design, safety provisions and environmental and social
safeguards.
(d) Overseas training plans designed for implementation need to be more realistic and
modest with due consideration given to government regulations on overseas travel.
(e) Land acquisition has become more contentious and more time has to be given to
resolve differences over compensation.
7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners
(a) Borrower/implementing agencies
Several issues regarding procurement were raised by the implementing agency, which are
listed below with the comments of the Bank team.
(From Guangxi) - „As the local construction market is immature, the possibility of
potential risks caused by the adoption of the principle of awarding contract to the
lowest bidder may not be ruled out. In view of this, it is recommended that the
employer be granted certain rights on decision-making where the Bank‟s rules and
regulations allow.‟
Bank’s Comments: It needs to be clarified that the principle of contract award in
Bank-financed procurement is the contract being awarded to the bidder who has
submitted the lowest evaluated responsive bid and who also meets the minimum
qualification requirements. It should not be simply or by misunderstanding to
16
interpret that the contract is awarded to the lowest price bidder. The employer is of
course the main decision-maker in selecting the contractor. But the process for bid
evaluation and selection of contractor should follow Bank procurement guidelines.
(From Guangdong) – „We suggest that the World Bank take the actual situation of
China into account and apply the World Bank policies to the project management
flexibly and systematically, with the economy and efficiency as the first principles,
while the Bank is promoting its normative procurement and project management
system. ‟
Bank’s Comments: The Bank task team has made its endeavor to apply Bank policies
into the actual context of the project in a pragmatic and flexible manner. And Bank
management has encouraged the adoption of country systems, where it is applicable.
Nevertheless, a Bank-funded project is also aimed to improve practices which have
been used by introducing proven international practices.
(From Guangdong) - We suggest that relevant governmental departments make
greater efforts to promote the waterways and the local government attach more
importance to the waterways. Meanwhile, the fund raising channel for the waterway
construction should be broadened and more capital should be invested. Through the
improvements of waterways, the local economy can be boosted, forming a good
economy cycle.
Bank’s Comments: The importance of inland waterway transport to the local
economy and to the comprehensive transport system has gradually been accepted by
the central and local governments. However, more financing support and incentive
policies from the central government will be needed to encourage local government
investment in waterways development.
(b) Cofinanciers
None
(c) Other partners and stakeholders
None
17
Annex 1. Project Costs and Financing
Project Costs: Guangxi
(US$1=RMB8.28)
Components Appraisal Estimate
(US$ million)
Actual/Latest Estimate
(US$ million)
Percentage of
Appraisal
Construction of Naji Dam, Power Station,
and Ship lock 38.51 42.43 110%
Construction of Access Roads 3.33 4.22 127%
Bank Protection (Dam and Reservoir) 2.33 4.48 192%
Turbines, Lock Gates, and Other
Equipment 29.76 20.62 69%
Channel Improvement (Baise-Nanning) 13.56 0.42 3%
Institution Strengthening, Consultants
Services, Training 14.49 9.30 64%
Resettlement and Land Acquisition 22.31 37.25 167%
Site Management Complex 1.92 3.61 188%
Total Baseline Cost 126.11 122.33 97%
Physical Contingencies 10.08
Price Contingencies 5.05
Total Project Cost 141.24 122.33 87%
Interest During Construction 6.37 10.06 158%
Front End Fee 0.45 0.23 51%
Total Financing Required 148.06 133.22 90%
Project Costs: Guangdong
(US$1=RMB8.28)
Components Appraisal Estimate
(US$ million)
Actual/Latest Estimate
(US$ million)
Percentage of
Appraisal
Channel Improvement-Lao-Long-Hu 15.71 9.60 61%
Replacement of 2 bridges 7.02 1.01 14%
Channel Improvement, North River Middle
Reaches 15.33 10.65 69%
Construction of Xiniu dam, power station,
shiplock and access road 19.91 24.37 122%
Turbine, lock gates and other equipment 10.45 11.60 111%
Upgrading navigational aids 0.79 0.70 89%
Computer hardware for electronic mapping,
shiplock management and MIS 1.40 2.21 158%
18
Service vessels, service vehicles, survey,
monitoring and ancillary equipment 1.20 2.10 175%
Institutional strengthening, consultant
services, training 16.69 18.02 108%
Land acquisition 8.28 15.93 192%
Total Baseline Cost 96.78 96.19 99%
Physical Contingencies 7.74
Price Contingencies 3.87
Total Project Cost 108.39 96.19 89%
Interest During Construction 3.51 5.51 157%
Front End Fee 0.46 0.23 50%
Total Financing Required 112.36 101.93 91%
Financing: Guangxi
Source of Funds Type of
Co-financing
Appraisal
Estimate
(US$ million)
Actual/Latest
Estimate
(US$ million)
Percentage of
Appraisal
Borrower 0.00 103.285 88.445 85.6%
International Bank for Reconstruction
and Development 0.00 45.000 44.775 99.5%
Financing: Guangdong
Source of Funds Type of
Co-financing
Appraisal
Estimate
(US$ million)
Actual/Latest
Estimate
(US$ million)
Percentage of
Appraisal
Borrower 0.00 66.135 56.930 84.6%
International Bank for Reconstruction
and Development 0.00 46.000 45.770 99.5%
19
Annex 2. Outputs by Component
Component Planned Outputs Actual Outputs
Part A: Guangxi
1. Construction of the Naji
Navigation Complex on the
Youjiang River between the
cities of Baise and Nanning
2. Construction of access
roads and a bridge
3. Construction of reservoir
protection embankment
4. Channel improvement
works
5. Resettlement and
rehabilitation of displaced
persons affected by Naji
navigation complex
development
6. Capacity building of
GXTD and the GXWCDC
7. Carry out technical studies
a) 20 meter high dam
b) shiplock
c) power plant with 57
megawatt capacity
d) acquisition and installation
of turbines and related
equipment for the powerhouse
e) acquisition and installation
of lock gates
Access roads on both banks of
the Youjiang River with a total
length of about 9 km and a
bridge across the river at the
dam site
About 30 km of embankment
to be reinforced
a) Dikes and dredging of
shoals between Baise and
Nanning
b) Upgrade navigational aids
49 households, 151 persons
for relocation and
rehabilitation. 16,532 sq.m of
new home construction
Technical assistance, training
and study tours
a) Financing, management and
operation of integrated
waterways and power
generation resources
b) development and
a) 20 meter high dam
b) shiplock
c) power plant with 66
megawatt capacity
d) equipment for the
powerhouse procured and
installed as designed
e) lock gates installed as
designed
Access roads on both banks of
the Youjiang River with a total
length of 9 km and a bridge
across the river on the crest of
the dam.
About 30 km of embankment
reinforced as designed.
a) Channel improvement works
undertaken according to
requirements.
b) Navigational aids between
Baise and Nanning upgraded as
planned
131 households and 559 persons
were relocated and rehabilitated.
15,622 sq.m of new
brick/concrete homes were
reconstructed
Domestic training of 546
person-months and overseas
training and study tours
amounting to 43 person-months
provided.
Studies completed as planned
20
installation of management
and information control
system
Part B: Guangdong
1. Channel improvement and
regulation works on Lao-
Long-Hu Waterway
a) deepening and widening of
16 km long waterway,
b) replacement of dikes,
c) construction of a diversion
canal and embankment
protection, and
d) installation of navigation
aids.
Lao-Long-Hu waterway
improved to Class 3 standard for
navigation of vessels up to 1,000
dwt.
2.Replacement of two bridges
New bridges at Lianyao and
Longma with sufficient
clearance for 1,000 dwt
vessels
New bridges under construction
at Lianyao and Longma that will
have enough clearance for 1,000
dwt vessels
3. Channel improvement
works on about 180 km of the
middle reaches of Beijiang
River between Shaoguan and
Qingyuan
a)Removal of shoals between
Shaoguan and Qingyuan,
b) upgrading of navigation
aids, and
c) construction of auxiliary
facilities
Channel between Shaoguan and
Qingyuan improved to
accommodate 300 dwt vessels
through removal of shoals and
upgrading of navigation aids.
Auxiliary facilities at Yingde
and Shaoguan are under
construction.
4. Construction of the Xiniu
Navigation Complex on the
Lian River
a) a 10.5 meter high dam,
b) a shiplock
c) a power plant with a 10
megawatt capacity and 2
substations to link the power
plant to the grid serving the
city of Yingde,
d) auxiliary facilities,
e) acquisition and installation
of turbines, lock gates and
related equipment for the
power house, and
f) upgrading navigation aids.
a) 10.5 meter high dam,
b) a shiplock for 1,000 dwt
vessels,
c) power plant of 10 megawatt
capacity,
d) auxiliary facilities at the
complex,
e) turbines, lock gates and
related equipment for power
house and shiplock, and
f) upgrading navigation aids
5. Resettlement and
rehabilitation of displaced
persons
Acquisition of 849.32 mu of
land
Land acquired was some
1,236.37 mu
6. Capacity building
Provision of technical
assistance, training and study
tours
19 training groups involving 127
persons were sent overseas. 17
domestic training programs
were provided to 293 persons.
21
7. Carrying out studies for
development
a) waterway electronic
mapping system, and
b) shiplock management
system.
a) electronic waterway mapping
system, and
b) shiplock management system
completed as planned
22
Annex 3. Economic and Financial Analysis
Economic Analysis
The development objectives of this Project are: (a) to improve the market access by
upgrading navigation conditions on the region's major east-west river feeding into the
Zhujiang (Pearl) River Delta region; and (b) to generate environmentally clean electricity
(hydropower) to help meet the growing energy demand in the region. There were no
changes in the PDO since appraisal. With the successful completion and operation of
navigation and hydropower facilities along the Pearl River as originally designed at
appraisal, these objectives are largely met.
The Project beneficiaries are local people, communities, and business entities engaged in
waterway transport in the transport corridor from Yunnan and Guizhou Provinces through
Guangxi to Guangzhou. They include many inhabitants of poor and remote rural areas in
inland and western China, as these areas are commonly the source of many of the cargoes
carried on the river.
The main economic benefits identified at appraisal have remained unchanged. They
included: (a) reduction in transport costs for existing traffic flows on the river; (b)
consumers or producers surplus associated with traffic diverted from road or rail to river
transport, together with newly generated traffic; and (c) social and economic gains from
increased electricity generation and consumption. At appraisal, the potential global
environmental benefits due to avoided CO2 emission from both transport energy savings
and hydropower generation were not included in the EIRR calculation.
The key monitoring indicators associated with economic benefits are the volume of
waterway traffic, the average size of vessels in the project waterways, and power output at
the project power plants.
Part A: Guangxi
2009 data shows that waterway traffic has reached 2.396 million tons, representing an
increase of 193% from 0.814 million tons in base year 2003, and a 9.9% increase compared
with the 2009 target value of 2.180 million tons.
Waterway transport capacity has also improved remarkably. Ship owners in the Baise
Municipality have been responding to the improved navigation conditions very positively
by increasing the size of their vessels. The average vessel size increased from 97 dwt in
2003 to 144.7 dwt in 2009, while the number of vessels registered in Baise dropped from
412 in 2006 to 330 in 2009. These results mean that ship owners have been able to replace
their ships with larger-sized ones due to improvements in navigation conditions in the
Baise section of the Youjiang River.
Bulky goods carried in the Youjiang River section between Baise and Nanning are mainly
construction materials (transported locally) and coal (transported from neighboring
23
Guizhou Province downstream to Guangdong). Other materials, which would take
advantage of the improved waterway navigation in future, include other minerals and cane
sugar, as well as timber. The Guangxi Government has recently made an ambitious plan to
develop the entire Xijiang River system as a “Golden Navigation Channel” with an annual
transport capacity of 100 million tons. The You River is the main tributary of the Xijiang
River. The Naji Complex is an important part of a ladder of ten dams on the whole length
of the You River, and the Yu River into which it flows. Its contribution to IWT would
significantly increase once the completion of other navigation facilities, especially the ship
lift of Baise Dam (already planned), Yuliang Complex (under construction), and Laokou
Complex (under preparation). Together these navigation complexes will help further
unleash the potential of IWT in the Pearl River basin. It is therefore expected that the
Guangxi (Naji) component of the Project will achieve its objective targets related to IWT
and market access.
The installation of three turbines with a total generation capacity of 66 MW (higher than
the originally designed 57 MW at appraisal) was completed on schedule in 2008.
Electricity generated in 2009 was 227 GWh, 10.2% lower than the 2009 target of 253 GWh.
The lower-than-designed electricity generation was due to two factors: a delayed reservoir
filling to the designed 115 meter elevation behind the dam, and a drought in 2009. The
reservoir‟s water elevation was 113.8 m in the period from January to October 2009, and
114.2 m in November and most of December 2009 due to a slight delay in the completion
of resettlement works. The river level reached its designed 115 meter by the end of 2009.
It is anticipated that the annual average amount of electricity generated by the Naji Dam
will be 273 GWh or higher during the rest of the project implementation period. This
represents a higher hydropower output than the appraisal target value. The average cost of
electricity generation is RMB 0.24 per KWh; the electricity tariff that residential consumers
pay is much higher (RMB 0.6003 in dry season and RMB 0.4563 in wet season), and the
tariff for business and manufacturers is even higher. This implies a significant consumers‟
surplus, which is normally bigger than the difference between the average production cost
and average electricity tariff for residential use. The consumers‟ surplus of electricity was
not quantified at appraisal; instead, the opportunity cost of gas turbine was used to estimate
the economic benefit of electricity generation.
Cost-benefit analysis conducted at appraisal estimated an EIRR of 18% as reported in the
PAD. Following exactly the same valuation approach and taking the same assumptions of
travel cost saving per ton and the economic benefit of electricity generated per KWh, the
EIRR at ICR is 15.8%. The slightly lower EIRR is mainly due to the delay of full capacity
electricity generation by 2 years. Most IWT traffic is local instead of long-distance from
Guangxi or even upstream Guizhou Province to the Pearl River Delta in Guangdong
Province.
Overall the component will achieve its economic targets based on the examination of
project outputs or outcomes, including a big increase in IWT potential in the region,
electricity generation, and global environmental benefits. Note that global environmental
benefits were not quantified at appraisal and could be important. In 2009 the hydropower
electricity generation of 227 GWh is equivalent to a reduction of about 170,100 tons of
24
CO2, which is worth US$1.7 million at a conservative valuation of the economic benefit of
CO2 emission reduction at $10 per ton of CO2. The global environmental benefit
(conservatively estimated and omitted at appraisal) is equivalent to 8% of the sum of
transport saving and power generation benefits.
Part B: Guangdong
The same approach was used in the economic analysis of three subcomponents in
Guangdong Province – Laolonghu Waterway, the Middle Reach in Beijiang River, and
Xiniu Complex.
Laolonghu Sub-component. IWT traffic in 2010 was only 1.33 million tons, much lower
than the projected 2.60 million tons. The lower traffic volume is due to the delay in
completing the reconstruction of two existing cross-river bridges that have insufficient
clearance.
The EIRR at appraisal was 51.0%. The estimated EIRR at completion is 26.5%. The lower
EIRR is attributed to the delay in project completion, especially the reconstruction of two
existing cross-river bridges. However, the revised EIRR is still high and satisfactory.
North River Sub-component. 2010 data shows that waterway traffic was 5.76 million tons,
which is lower than the projected 7.18 million tons at appraisal. The IWT data was
obtained from Feilaixia Shiplock in the Beijiang River section, so it may represent a low
end figure.
EIRR at appraisal was 24.1%. The estimated EIRR at completion is 24.8%. The slightly
higher EIRR is attributed to the lower capital investment in the early years of the
construction period.
Xiniu Sub-component. 2010 data shows that the waterway traffic passing the Complex‟s
shiplock was merely 15,000 tons, much lower than the projected 2.6 million tons at
appraisal. The low IWT is due to the delay in completing the Xiniu Complex, which has
made the river section virtually not navigable. In the ICR analysis, it is assumed that the
IWT in 2012 will be at the level projected in the PAD.
The installation of the turbines with a total generation capacity of 10 MW was not
completed until 2011. Electricity planned to be generated in 2011 was only 7.73 GWh,
much lower than the projection of 46 GWh at appraisal. Based on the latest data, it is
projected that the power generation will be 30.9 GWh in 2012 and 38.7 GWh from 2013.
The lower-than-designed electricity generation was due to lower-than-designed elevation
behind the dam. The consumers‟ surplus of electricity was not quantified at appraisal;
instead, the opportunity cost of gas turbine was used to estimate the economic benefit of
electricity generation.
The EIRR at appraisal was 12.83%. The EIRR estimated at completion is only 5.12%. The
lower EIRR is attributed to the lower IWT and power generation projection than at
appraisal.
25
The Guangdong component as a whole yields an aggregated EIRR of 15.3% which despite
being lower than the appraisal estimate of 23.0%., is still satisfactory.
In summary, the project‟s economic objectives have largely been achieved.
Financial Analysis
For the Guangxi component, a FIRR of 3.4% was estimated at appraisal under the
assumptions that electricity sale price would be RMB0.35 per KWh and that the shiplock
fee would be RMB0.40 per ton. However, these assumptions are no longer valid because:
Guangxi Government decided, after project appraisal, to local economic development with
river navigation facilitation as a public service, and hence not to charge a shiplock fee
along the entire Xijiang River section in Guangxi;. the sale price of electricity (sold by the
power plant to state grid) has been fixed by the government currently at RMB0.29 per
KWh (six cents lower than the price anticipated at project appraisal). The project
implementing entity, which is 100% owned by the provincial government, faces a lower
than expected financial return, as shown in the table below. The FIRR has decreased from
3.4% to 0.74% , but is still positive.
2004 2005 2006 2007 2008 2009 2010 2015 2020 2029
I. Cash Inflow 1.28 46.57 61.71 79.34 87.48 91.85 106.33
1.28 46.57 61.71 79.34 87.48 91.85 106.33
4.38 157.00 212.80 273.60 273.60 273.60 273.60
0.29 0.29 0.29 0.29 0.32 0.34 0.39
II.Cash Outflow (million Yuan) 92.91 86.00 100.00 153.53 43.22 81.56 78.50 80.48 81.35 36.91
92.91 86.00 100.00 148.00 21.19 0.00 0.00 0.00 0.00 0.00
0.23 8.23 10.91 14.03 15.47 16.24 18.80
5.30 9.47 9.56 9.66 10.15 10.67 11.67
12.14 2.90 1.86 0.83 0.00
0.00 0.00 48.94 48.94 48.94 48.94 0.00
Include： Domestic loan 0.00 0.00 20.71 20.71 20.71 20.71 0.00
World Bank loan 0.00 0.00 28.23 28.23 28.23 28.23 0.00
0.00 4.33 0.00 2.97 4.06 4.67 6.44
(92.91) (86.00) (100.00) (152.25) 3.35 (19.84) 0.84 7.00 10.50 69.42
IV. FIRR 0.74%
Construction Period Operation Period
Item\Year
1. Electricity Sales Revenue (million Yuan)
Electricity sold to grid systems (Gwh)
6.Income Tax (million Yuan)
III. Net Cashflow
Electricity Sale Price (yuan/Kwh)
1.Capital Investment (own source)
2.Sales Tax and Associate Charge
3.Operating Cost（excluding depreciation）
4.Financial Cost（interest deducted）
5.Principal Payment (million Yuan)
In Guangdong, the PAD estimated a negative FIRR. The recalculation at completion still
shows a net financial loss to the operator of the Xiniu Complex. As the government has
agreed to cover the losses of the complex from its annual budget, the negative FIRR does
not affect the financial viability of the Project.
In summary, since the ultimate objective of the Project is to provide public goods, both
local and global, low financial returns (or even a loss) of the government-owned project
implementing entity is acceptable.
26
Annex 4. Bank Lending and Implementation Support/Supervision Processes
(a) Task Team members
Names Title Unit Responsibility/
Specialty
Lending
Graham Smith Consultant SASDT Task Team Leader
John Carter Scales Lead Transport Specialist EASCS Alternative Task Team Leader
Xin Chen Senior Program Assistant EACCF Team Assistance
Emmanuel Py Infrastructure Specialist EASIN Project Assistance
Wenlai Zhang Senior Transport Specialist EASCS Civil Engineering
Xiaowei Guo Senior Procurement Specialist EAPPR Procurement
Emmanuel Py Infrastructure Specialist EASIN Project Assistance
Naoya Tsukamoto Senior Environmental Engineer EASEN Environmental Assessment
Han-Kang Yen Research Analyst EASIN Financial Analysis
Chaohua Zhang Senior Social Sector Specialist SASDS Social Assessment
Kek Choo Chung Consultant EASCS Navigation
Hongyun Liu Consultant EASIN Hydropower
Richard Y. Scheiner Consultant AFTTR Civil Engineering
Supervision/ICR
Wenlai Zhang Senior Transport Specialist EASCS Task Team Leader (2008-2011)
John Carter Scales Lead Transport Specialist EASCS Task Team Leader (2006-2008)
Graham Smith Consultant SASDT Task Team Leader (2004-2005)
Xin Chen Senior Program Assistant EACCF Team Assistance
Teresita Ortega Program Assistant EASIN Team Assistance
Xuan Peng Program Assistant EACCF Team Assistance
Yunqing Tian Team Assistant EACCF Team Assistance
Hong Chen Operations Officer EASSD Project Assistance
Yi Geng Senior Financial Management
Specialist EAPFM Financial Management
Jianjun Guo Procurement Specialist EAPPR Procurement
Haiyan Wang Senior Finance Officer CTRDM Disbursement
Songling Yao Senior Social Development
Specialist EASCS Social Assessment
Yiren Feng Environmental Specialist EASCS Environment
Jian Xie Senior Environmental Specialist EASER Environmental Economics
Peishen Wang Consultant EASCS Environment
Jianming Zhao Consultant EASCS Geotechnical
Kek Choo Chung Consultant EASCS Navigation
Jiang Dai Consultant EASCS Hydropower
27
(b) Staff Time and Cost
Stage of Project Cycle
Staff Time and Cost (Bank Budget Only)
No. of staff weeks USD Thousands (including
travel and consultant costs)
Lending
FY02 4.7 32.95
FY03 37.03 268.33
FY04 29.77 248.81
FY05 0 -1.06
FY06 0 0.00
FY07 0 0.00
FY08 0 0.00
Total: 71.50 549.03
Supervision/ICR
FY02 0 0.00
FY03 0 0.00
FY04 1.25 15.71
FY05 19.37 103.98
FY06 14.05 67.70
FY07 14.67 65.21
FY08 14.84 91.92
FY09 13.56 79.44
FY10 8.99 68.99
FY11 10.50 74.52
Total: 97.23 567.47
28
Annex 5. Summary of Borrower's ICR and/or Comments
Part A: Guangxi
According to the Comprehensive Utilization Plan of Yujiang River of the Xijiang River
System of the Pearl River Basin approved by the State Council, Guangxi Youjiang Naji
Navigation Complex Project is the fourth of ten cascade dams on the whole length of the
Youjiang and Yujiang Rivers. As a navigation complex and one of the key construction
projects in the State‟s “11th
Five-year Plan”, the Naji Project is an integral component of
the overall Xijiang River water management system, with supplementary functions of
power generation, irrigation and other benefits. The Project mainly includes the
construction of a power plant, a ship lock, a dam and channel improvement from Baise to
Nanning. After completion, the Project is expected to generate 253 GWh of electricity per
year and annual taxes amounting to RMB 16million. The navigation standard is improved
to 500 DWT vessels of Class IV navigation standard from the previous Class VI for 120
DWT vessels. The channelized Youjiang River will be able to accommodate 1,000 DWT
capacity of Class III Navigation Standard after the completion of the Yuliang, Jinji and
Laokou Complexes. The improvement of navigation on Youjiang River is significant in
contributing towards the ongoing course of improving the social and economic
development in the poorer areas in Baise as well as in the development of the Xijiang
Economic Corridor and the Pan-Pearl River Delta Economic Zone.
The total investment of the Project is estimated at RMB 1.18billion, including the USD
45million loan from the World Bank and the rest from the central and Guangxi government
grants, contribution by the implementing entity and domestic loans. Since the
commencement of the Project, with the support and assistance from the GTD, and under
World Bank‟s guidance and supervision as well as the joint efforts from and close
cooperation between contractors, consultants, engineers and the employer, the second
phase closure was completed and navigation opened in Oct. 2007; the first generator started
operation in Dec. 2007 followed by the second in Mar. 2008 and the third in Jun. 2008
respectively. Despite all difficulties, the Project has been implemented as planned and on
schedule. We have gained many useful experiences and learned certain lessons on the
project implementation as follows.
The cooperation with the World Bank has brought great positive changes in the philosophy
and concepts of our practice, operation and management, which helped us to realize that
equal attention should be paid to both economic and social benefits. As a result, more
efforts have been made and effective actions taken in practice to improve efficiency in
environmental protection and resettlement.
Adequate attention was given to resettlement to ensure that affected persons could improve
and maintain livelihoods not lower than those before resettlement so as to create harmony
and stability in the reservoir area where these people could live and work in contentment.
For the purpose of smooth implementation of the resettlement program, the Employer,
together with local governments and the task team of the World Bank Beijing Office has
undertaken a series of studies and consultations for the most appropriate mode. Measures
taken included: (1) affected persons were resettled in their own villages or nearby in the
reservoir area without moving to other villages or towns; (2) dumped soil was used in
29
raising/filling lands for cultivation and such farmlands were returned to the villagers. Lands
were reallocated by local governments to ensure basic life security; where possible, unified
resettlement was arranged and implemented so as to have it included into the Plan of
Building New Socialism Countryside; some of the compensation for lands was used in the
production development and planning in the resettled villagers for the purpose of
increasing farmers‟ income. The implementation of such measures reflected the policy and
the practice of building a resource-saving and environmental friendly society and the
advocating of showing more concerns for the people, which has improved our relation with
the local population. There was no obstruction to construction or complaint to the higher
authorities during construction and after operation of the Project. Such measures have been
proven to be effective in maintaining stability and harmony in both the reservoir and local
areas. The Baise Municipal Government is in the process of inspecting and evaluating the
outcome of the resettlement for categorizing it as having met the standards for a
demonstration project.
Issues concerning environmental protection have been given considerable attention during
the construction period. Under the guidance and supervision of the World Bank review
missions, environmental monitoring was carried out throughout the construction period.
Effective measures and actions were taken to mitigate adverse impacts on the environment
and the ecology. Such measures included: (1) urging all concerned parties to build
domestic sewage treatment stations in the living quarters of the work site so that waste
water met relevant standards before being discharged; (2) building the two-stage
sedimentation basin in the sand yard of the contractor so as to ensure the waste water from
the sand yard met relevant standards; (3) frequent spraying to relieve dust emissions that
caused adverse environmental impacts during construction; (4) timely cladding on the
slopes of the dumping sites to mitigate washout of the slopes by rain water; (5) regular fry
releases were conducted to protect the fishery ecology. (The first fry release was completed
on Aug. 27, 2009); (6) greening and landscaping were carried out during the later period of
construction in the entire dam site with local mango, peach and kapok trees planted along
the banks at upstream and downstream of the dam. There is no doubt that a beautiful
landscape of trees, green grass and flowers will eventually materialize. We consider this an
important contribution to the enhancement of the local environment.
The Bank‟s supervision was important and necessary for improving proper and
standardized project management. The implementing entity, GXWCDC, acquired
advanced management methods and benefited from the experiences of the implementation
of similar overseas and domestic projects, which could be used as references, in the
preparation and development of relevant rules and regulations to ensure proper day-to-day
operation and management.
Careful planning and strict management in the procurement and financial management
(bidding, contract negotiation, contract execution, funds utilization, financial management,
payment and claim for disbursements etc.) have greatly improved our level of management.
Compliance with the Bank‟s procurement guidelines has positive influences on the
designers, consultants and engineers whose work has been recognized and appreciated by
the senior management.
30
The World Bank loan was vital to the implementation and progress of the Project. The
loan was sufficient and disbursed in time, which was a great help to the implementing
entity.
The semi-annual missions allowed the World Bank to review, analyze and put forward
recommendations to address issues and problems occurred during construction and project
implementation. Besides, the World Bank‟s unique coordination capacity and position also
made it easier to request immediate attention of the contractor‟s management to solve the
problems such as negligence in work, insufficient resources and breaches of contract with
continuous follow-up checks and inspections. Such measures and actions were of great
importance to the smooth implementation of the Project.
A dam safety panel (DSP) was established as requested according to World Bank policy to
provide necessary technical assistances. The DSP consisted of experts and specialists of
whom more than half were professors or senior engineers in the fields of hydro-engineering,
geology, construction and metal structure with specific expertise and experiences in both
theory and practice and strong sense of responsibility. The DSP provided regular as well as
non-scheduled consultations, supervisions, comments and recommendations as necessary
for the smooth implementation of the Project. Their work, achievements and efforts were
highly appreciated by the World Bank. Such successful experience is worthy of being
duplicated.
The selection of an appropriate contractor is very important for the success of project
implementation, as the contractor is the key performer of the construction works. In an
immature market lacking of sound enforcement on social credibility, awarding contract to
the lowest bidder may not always be cost-effective to the employer but rather may cost
more in manpower and financial resources to make up for delay and poor quality of works.
In the case of our project, the winner for the contract of the civil works was not good at
hydraulic construction. Lots of deficiencies were exposed in work safety, quality, progress
and management during the preliminary phase of construction. Despite all the efforts and
assistances extended to the project site management office of the contractor, progress was
still slow. The Employer had to request replacement of the inefficient site management of
the contractor. Though the situation was improved gradually and finally, it was a painful
experience and a costly lesson for the Employer and the senior management, and the
engineers responsible for supervising civil works.
Construction safety is the first priority and safe work practices must be followed in
accordance with relevant laws and safety codes. The contractor should be held liable for
construction safety. The qualification and capacity of work safety management of the
contractor must be carefully checked. All concerned parties, especially the contractor were
required to take necessary precautions and fulfill their responsibility for site safety
supervision. In case of non-conformity, the contractor would be ordered to take effective
actions to improve or stop work as necessary. Termination of contract would be the last
means if no improvement is made. An accident that caused the death of four laborers
happened at the work site of the lower lock gate due to landslide in the slopes before dawn
on July 30, 2006. Though the accident was caused by a unpredictable geological collapse;
and the failure of the contractor to organize an efficient and effective emergency
evacuation indirectly contributed to the damage and fatalities. Learning lesson from the
31
accident which included efficient and proper measures for backfilling in the slope toes and
slope surface, and wire-netting sprayed concrete for slope protection were taken.
Necessary measures were also taken against potential safety hazards. Since then, no
casualty accident has happened. It was a painful experience and a costly lesson. Safety
should always be placed in the first place in comparison with work progress.
The quality of project relies greatly on the project management level of the employer. The
Employer aimed for the efficient management of investments, quality control and
implementation progress. In this case, the employer attached great importance to the
overall coordination and planning so as to solve problems which occurred during
construction. Such unified planning has been proven to be important for the completion of
works ahead of schedule.
Attention must be paid to proper and efficient procurement of works, goods and services.
The process concerning invitation for bids must be treated seriously. Preparation for
invitation for bids for the Bank-financed procurement required a series of standard
procedures and time for approval, therefore, sufficient time had to be allowed for the
invitation for bids and bid award to avoid missing the planned schedule for implementation.
Proper and timely communication with the Bank team was important for the Employer to
better understand the Bank‟s rules and regulations and likewise for the World Bank to
know more about the real situations in China so as to mitigate potential risks and adverse
impacts to the employer through following the principle of awarding contract to the lowest
evaluated bidder.
As the local construction market is immature, the possibility of potential risks caused by
the adoption of the principle of awarding contract to the lowest bidder may not be ruled out.
In view of this, it is recommended that the employer be granted certain rights on decision-
making where the Bank‟s rules and regulations allow.
The aforesaid are the experiences and lessons we learned through utilizing foreign funds in
the implementation of the Project which we would like to share and hope they may be
helpful to other similar projects. Our summary may not cover every aspect of project
implementation. We welcome comments and appreciate any kind of suggestions.
32
Part B: Guangdong
1. Project Introduction
1.1 General
The Guangdong Component of the Project has three sub-components: regulation works on
the middle reaches of Beijiang River (from Shaoguan to Qingyuan, 184 km), upgrading of
Lao-long-hu Waterway (16km) and the construction of Xiniu Dam on the Lianjiang River.
Guangdong Provincial Development and Planning Commission approved the Feasibility
Study Reports (FSR) of the three sub-projects respectively through three official documents.
The project was appraised in March, 2004; a loan of USD 46 million from the World Bank
was negotiated; and the Loan Agreement was signed in May, 2004, with the effective date
of January 9, 2005. The original closing date of the loan was January 31, 2010, and then
extended to June 30, 2011.
Channel regulation works on the middle reaches of Beijiang River upgraded the channel to
national Class V standard to accommodate vessels up to 300 dwt. The depth of the
waterway is 1.3 m, the width is 40 m, and the bending radius is 330m. As for regulation
works on the Lao-long-hu Waterway, the channel was upgraded to national Class III
standard to accommodate vessels of 1,000 dwt, with a depth of 4m, a width of 50m and a
bending radius of 330m. For the construction of Xiniu Complex on Lianjiang River, the
ship lock was designed to accommodate 100 dwt motor barges, with the annual tonnage
capacity of 2.57 million tons. The installed capacity of the power station is 3×3,340kw.
The total investment of this Project was estimated at RMB 930 million with an estimated
construction period of 4 years. The EIRR at the time of appraisal was estimated at 16.58%
and the ENPV was RMB 264.04 million.
The project was aimed to reduce the cost of waterway transport from the impoverished
rural and mountain areas in the west and northern part of Guangdong to the Pearl River
Delta. It plays an important role in improving the comprehensive transport network,
forming the Pearl River Delta waterway network of “Three-vertical-and-three-horizontal”
waterways and promotes the development of the export-oriented economy.
1.2 Investment Estimate and Funds Source
The total investment of the Project was estimated at RMB 930.34 million, equivalent to
US$ 112.36 million (USD1=RMB8.28). The funding sources of this project included the
World Bank loan, and the funds from MOT and the provincial government.
Table 1. Project Funding Sources:
Funding Sources Amount
(in USD million)
Amount
(in RMB million)
Ministry of Transport 35.11 290.74
Guangdong Province 31.25 258.72
World Bank 46.00 380.88
Total 112.36 930.34
1.3 Procurement Plan
The project was undertaken through 21 contracts involving civil works, equipment
33
procurement and consulting services. In terms of the procurement method, 8 contracts
were procured by ICB, 4 contracts by NCB, 4 contracts by QCBS, 2 contracts by CQ, 1
contract by NS, and 2 contracts being non-Bank financed. The disbursement percentages
of the Bank loan for the civil works, goods, consulting services and training were 50%,
100%, 91% and 100% respectively.
2. Performance of Project Implementation
2.1 Progress of Implementation
The Guangdong Component started in March, 2005. The Bank-financed part of the project
was completed by June 30, 2011 but the non-World Bank financed contracts are scheduled
to be completed by May 2012. The implementation progress lagged behind the schedule
due mainly to complicated geological conditions, excessive floods, large contract variations,
difficulties in land acquisition, and the contractors‟ poor performance.
2.2 Quality of Construction
The 4-grade quality guarantee system of “Government inspecting, Client managing,
Engineer supervision and Contractor back-check” was adopted for the quality control of the
Project. The contractors and the supervising engineers installed laboratories at the
construction sites. The contractors did the sample inspection of the materials, semi-finished
products and finished products while the supervising engineers did the parallel tests.
Moreover, the client entrusted a third party to spot-check the materials, semi-finished
products and finished products of the important component of the project, which effectively
controlled the quality of these parts. The site supervision engineers and the management
staff of the Client urged the contractor to inspect, site-supervise and examine the
construction procedures, methods and techniques so as to monitor and ensure the
construction quality.
The qualifying rate of the quality of Contract W2 is 100% and the excellent rate reaches
70%. The quality of Contract W4 is rated as “qualified”. It has been awarded the Excellent
Building Structure Project 2007 in Qingyuan, presented by Qingyuan Construction Quality
Supervision Station, as well as the Excellent Sample Project 2009 in Qingyuan, issued by
the Qingyuan Construction Bureau. Other civil works are predicted to be rated as
“qualified” based on the present quality. As for the goods contracts, except Contract G5
being still on-going, other contracts are rated as “qualified”. Contract T2 (Electronic
waterway mapping system) and Contract T4 (Shiplock Management System) are qualified.
2.3 Financial Management
The actual total investment will be estimated at RMB 843.97 million. Up to June 30, 2011,
the percentage of total actual disbursement to estimated amount is 89.75%, with
counterpart funds 87.27% and the Bank loan 100%. To fully use the Bank loan and reduce
financing cost, the disbursement percentage for civil works was increased from 50% to
80%. The financial management has been under appropriate control. All the annual audit
reports during the project implementation were unqualified (clean).
2.4 Technical Assistance and Training
The technical assistance comprised Contract T2 (Electronic Waterway Mapping System)
and Contract T4 (Shiplock Management System). The Waterway Electronic Mapping
System is a tool to analyze and process the waterway geographic data and support the
34
decision-making. Contract T2 has designed and developed a waterway electronic mapping
system which boosted the transformation of the waterway information managing mode and
improved modern management level of the waterway. The Shiplock Management System
has developed a shiplock management center, facilitating the collection, transmission,
tabulation, analyzing, querying, comparison and statement printing of the data which
showed the status, water level and vessels of the twelve shiplocks on the Lianjiang River.
Meanwhile the shiplock management system realized the control of monitoring and
warning as well as the water level regulating gate in the shiplock area. This system
enhanced the information sharing and management between the shiplock managing
departments at all levels, increased the management efficiency of the twelve shiplocks and
promoted the management level and capability of the waterway shiplocks.
Training programs of the Project include: study on inland waterway development planning,
inland waterway management and vessel operation, environment protection; study on
waterway polices and regulations, waterway construction and maintenance; research on
waterway design optimization, navigation junction management and maintenance,
procurement and contract, development and utilization of navigational aids, maintenance
and monitoring of channel markers, advanced financial management, human resource
management, project management, MIS, economic analysis and evaluation,
informationization of waterway construction, software application, English language, etc.
During 2005 and 2010, there were totally 19 overseas training groups, involving 127
persons. The overseas training planned to involve about 84 man-months. Actually there
were accumulatively 64.52 man-months. Although the actual man-months were lower than
the planned ones due to the government‟s restriction on the numbers of participants and the
days of overseas training, the planned training topics and tasks have been mostly
implemented. From 2004 to 2010, totally there were 17 domestic training groups,
involving 293 persons. The domestic training was planned to involve about 130 man-
months. But actually there were 97.37 man-months for domestic training.
3. Land Requisition and Resettlement
3.1 Land Requisition
The total land requisition area of the Project is 1,236.371 mu, which is 386.051 mu more
than the planned area figure (849.32 mu, not including the flood lands) in the resettlement
action plan, increasing by 45.57%.
3.2 Infrastructure Removal and Restoration
There was no removal of residences and enterprise housing. The buildings removed have
been compensated.
3.3 Resettlement Fee
The total cost of the resettlement was about RMB 129.49 million, which was more than the
estimated cost in the resettlement plan. The increased cost mainly involved three aspects:
(1) Zhangwu Village and Hetou Village whose cultivated lands per capita were less than
0.5 mu have been compensated by RMB 11.655 million; (2) the changed national policies
for land requisition have increased the compensation rates for land requisition; (3) the
removal fee for the Longma and Lianyao Bridges was RMB 10 million. The fees
mentioned above were not listed in the resettlement plan. The land requisition
35
compensation standard of this Project was apparently higher than the stipulated standard in
the resettlement plan. The compensation standard of paddy fields for the Xiniu project
have been increased by 36% and the standard of dry lands have been increased by 6%. As
for the regulation work of Lao-long-hu River, the Xinhui Transport Bureau has basically
reached the compensation standard according to the land types and use of lands (quarry and
discarded lands in the brick yards). The comprehensive unit price of the land requisition
compensation of the two bridges was 45% higher than that of the Lao-long-hu project.
3.4 Residents’ Living Standard
As for the residents‟ living standard, the net income per household has increased by 23.7%
and the net income per capita has increased by 28.5%, compared to that before the land
requisition, which is not a significant increase compared with the households that are
unaffected by the land requisition.
Generally, the resettlement of the project has been carried out based on the requirements set
in the resettlement action plan in terms of land requisition, compensation, information
disclosure, economy recovery and complaints processing. It has achieved the goal of
improving the living standard of the affected people.
4. Environment Protection and Monitoring
During the project implementation, relevant environment management agencies were set up
to make the management system for environment protection. The environment
management agencies at all levels have taken measures in respect of the acoustic
environment, water environment and ecological environment based on the requirements in
the Environmental Impact Assessment Report and the Environment Protection Actions
Plan. The measures included the effective noise-reducing and dust-controlling measures,
reducing the influence of the suspended solids; the ecological restoration measures on the
mud dumping area and temporary construction area; the compensation to the fishery
resources; construction of the fish ladder. Meanwhile, the environment management system
was improved by the Client and the supervising engineers. We insisted that the
construction should be implemented together with the protection of environment. Therefore,
we strictly carried out the project based on the environment monitoring plan during
construction.
4.1 Protection of Fishery Resources
With the objective of ecological and environmental protection and based on the
requirements of ecological and environmental protective measures in the EIA and EMP, the
protection of fishery resources in Lianjiang River has been carried out. For example, during
the construction, the rubbish and harmful chemical hazards were forbidden to be discarded
into the river. Meanwhile, no-fishing zones of 200 meters each was set in the upstream and
downstream of the river. To effectively protect the fishery resources, the Qingyuan Branch
of the Guangdong Fishery Corps took remedy measures of fishery resource enhancement
and releasing to improve the situation of fishery decreasing. The fishery resource
enhancement and releasing measures will last 15 years, with the total investment of RMB
1.5 million. By now, 4 fishery resource enhancement and releasing activities have been
carried out, releasing about 2.16 million fishes such as black carp, dace, grass carp, crucian,
carp and so on.
36
To minimize the damage of the construction to the environment of the fishery and to solve
the fish ladder issues, the GPWB entrusted the Environment Protection Center of the MOT
and the Pearl River Fishery Research Institute to research the measures of protecting the
fishery in Lianjiang River and design the scheme of the fish ladder. Meanwhile the GPWB
also invited the experts from the Ministry of Water Resources, the Ministry of Agriculture,
the Ministry of Transport and Guangdong Province to evaluate the fish ladder scheme. The
construction of the fish ladder was completed and operational in February 2011.
4.2 Environment Monitoring
According to the requirements of the environmental monitoring plan in the EIA and the
EMP, the Pearl River Basin Water Environment Monitoring Center was selected through
the public bidding to undertake the environmental monitoring during the construction.
During Dec., 2004 and the end of the construction, the Pearl River Basin Water
Environment Monitoring Center carried out the environmental monitoring on the
construction area and made comprehensive analysis on the influence of the construction to
the water environment based on the progress and environment. Meanwhile, the
environmental monitoring materials as well as 13 semiannual monitoring reports have been
periodically sent to the World Bank and relevant departments.
In the water quality monitoring of middle reaches of Beijiang River and the Xiniu
construction on Lianjiang River, the average value of the cross sections of each project has
reached the Grade I-III water standard. There was no over proof and no big influence on
the water quality. For some reaches of the river, there were more suspended matters during
the flood period and the cofferdam dismantled period than usual, but the influence lasts not
long. Since some reaches of Beijiang River was polluted by the industrial effluents
containing the cadmium and the arsenic, whose heavy metals were over standard and the
quantity of arsenic exceed the standard in the Controlling Standard for Pollutants in Farm-
oriented Sludge (GB4284-84), the contractors paid great attention to the management of the
dredged materials and did not discard them arbitrarily or apply them to the farm.
According to the monitoring results during construction, the air quality of the urban
residences around the constructed waterway was fine, and its TSP and PM10 were much
lower than the Grade II limit in the Environment Air Quality Standard. This showed that
the contractor had effectively reduced the dust from the dredging, excavation and
transportation, and controlled the air pollution caused by the construction within a small
range around the construction area, which did not influenced the air quality of the residents
around the waterway.
The measuring results of the noise gauging points in the monitoring plan were all within
the limit of Grade II standard set in the Environment Noise Standard in Urban Area
(GB3096-93), which met the requirements of acoustic environmental protection objective.
It means that the construction did not brought significant noise on the area.
5. Experience, Lessons and Suggestions
5.1 Experience
(1) The Guangdong province has introduced the World Bank loan twice to improve the
waterway and its management level. This Project is the second World Bank loan project in
Guangdong. By implementing the Project, we have studied the essential refined and
scientific element in the management of World Bank loan project and improved the
37
management mode, which upgraded the waterway comprehensive management level and
advanced the sustainable development of waterway.
(2) We expected that the application of Reno Gabion, a new material for environment
protection, will bring a demonstration effect. Reno Gabion is a new material for
environment protection, which can be applied to the construction such as bank protection,
revetment and foot protection. The features of this material include good integrity, great
erosion-resisting ability, flexible structure, good flexibility in adapting to the deformation
of foundation. If the sludge fills in Reno Gabions, it is easy for the vegetation grow.
Meanwhile, it is environmentally friendly and not expensive if there are available materials
in the local area. It is the first time for us to apply the Reno Gabion to bank protection in
terms of hydraulic engineering and waterway projects in Guangdong. Since there were a
great amount of pebbles in Xiniu construction site, we decided to apply the Reno Gabion to
bank protection of approach channels along the upstream and downstream around the ship
lock, with the application area of about 50,000 ㎡. In July, 2006, the worst flood in 50
years took place, but the Reno Gabion was not affected. After the work completed, the
Reno Gabion was basically covered with vegetation. Based on the effect of the application
of Reno Gabion for the moment, we concluded that it is a success in applying this new
material in the construction of Xiniu Dam. Meanwhile, the demonstration effect emerged.
The Reno Gabion has been applied in the other waterway projects such as Reinforcement
of Canalization Complexes and Waterway Improvement on Lianjiang River, as well as the
Improvements of Meijiang River and Tingjiang River.
(3) We have attached great importance to the environment protection and the compatibility
of construction and environment protection. Based on the requirements of ecological and
environmental protection in the EIA and EMP, we carried out monitoring on the water
quality, air and noise of the regulation work of middle reaches of Beijiang River, the
regulation work of Lao-long-hu River and the construction of Xiniu Dam on Lianjiang
River. The results showed that the monitoring data met the national criteria. In order to
protect the fishery resources in Lianjiang River and minimize the blocking loss brought by
the construction of Xiniu Dam, the Project made a 15-year plan of fishery resource
enhancement and releasing and built the first fish ladder in Guangdong Province. We can
expect that the blocking loss brought by the construction of Xiniu Dam will be minimized
in respect of the fishery protecting technology for the moment.
5.2 Lessons
(1) The World Bank‟s procurement guidelines cannot be applied rigidly in China.
Since the market economy started late in China, the market competition system is still
incomplete and the credit system is still inadequate. Though the management experience
of World Bank projects has been proven to be advanced and scientific, it is still difficult to
promote the principle of low-quoted price bidding in project procurement. For most of the
domestic bidders, the first thing they are considering is to win the bid instead of gaining
profit because they need to sustain their business. Therefore, the World Bank projects low-
bidding phenomenon is prevailing in China. However, in the project implementation, the
contractor who won the bid with a low price would make up the margin by contract
variation, claiming or even delaying the construction, which made it difficult to carry out
the project.
38
(2) Some local governments lack enough understanding and support to the waterway,
which makes the coordination more difficult. The construction of waterways possesses the
features of great public benefit, long investing period and low return, which means that a
period of time is needed to show its social and economy effect. However, due to the slow
economy effect of the waterway, some local governments take no account of the waterways.
Instead, they attach importance to the construction of roads and highways, which caused
difficulties in the coordination during project implementation.
5.3 Suggestions
(1) We suggest that the World Bank take the actual situation of China into account and
apply the World Bank policies to the project management flexibly and systematically, with
the economy and efficiency as the first principles, while the Bank is promoting its
normative procurement and project management system.
(2) We suggest that relevant governmental departments make greater efforts to promote
the waterways and the local government attach more importance to the waterways.
Meanwhile, the fund raising channel for the waterway construction should be broadened
and more capital should be invested. Through the improvements of waterways, the local
economy can be boosted, forming a good economy cycle.
39
Annex 6. List of Supporting Documents
1. The World Bank, Project Appraisal Document, Fourth Inland Waterways Project,
March 1, 2004Guangdong Project Management office, “Project Cost Estimates and
Financing Plan”, received on May 13, 2011.
3. The World Bank, Fourth Inland Waterways Project, Aide-Memoires, Management
Letters, 2004-2011.
4. Guangdong Project Management office, “Semi-annual Project Progress Report”,
2004-2010.
5. Guangdong Project Management office, Social Assessment Report, July 2002.
6. Guangdong Project Management office, Environment Assessment Report, May
2005.
7. Guangdong Project Management office, Resettlement Action Plan, August 2008.
8. Guangdong Project Management office, Audit Reports, 2006-2010.
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MAJOR NAVIGABLE WATERWAYS
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PREVIOUS BANK FINANCED RIVER PORTS
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PREVIOUS BANK FINANCED SEA PORTS
PREVIOUS BANK FINANCED SHIPLOCKS
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Channel Improvements (IWW2)
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For detail see IBRD32889 and 32890
For detail seeIBRD 32888
This map was produced by the Map Design Unit of The World Bank.The boundaries, colors, denominations and any other informationshown on this map do not imply, on the part of The World BankGroup, any judgment on the legal status of any territory, or anyendorsement or acceptance of such boundaries.
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See detail below
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CHANNEL IMPROVEMENTS
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IBRD 32889
MARCH 2004
GENERAL PLAN LAYOUT OFXINIU NAVIGATION COMPLEX
SectionD
For detail seemap at right
0 100 200 m.
For detail seeIBRD 32890
This map was produced by the Map Design Unit of The World Bank.The boundaries, colors, denominations and any other information shownon this map do not imply, on the part of The World Bank Group, anyjudgment on the legal status of any territory, or any endorsement oracceptance of such boundaries.
CHANNEL IMPROVEMENTS
EXISTING DAMS
RIVER PORTS
NATIONAL ROADS
RAILROADS
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Mengzhouba Dam
LongchuangchangDam
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SectionC
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SectionB
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Xiniu DamFor detail seemap at right
SectionE
0 10 205 15 30
KILOMETERS
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Dam Section
Pow
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CHINA
FOURTH INLAND WATERWAYS PROJECTGUANGDONG PROVINCE
XINIU NAVIGATION COMPLEX AND BEIJIANG CHANNEL IMPROVEMENTS
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SURFACE PROFILEOF STEPPED DAMS
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90
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utan
Hua
ngya
ntan
Hua
min
gzui
Jiaoj
ianb
o
Qin
glia
n
Qin
gshu
an
Shuo
yita
n
Huan
gmao
xia
Jiaqi
aosh
i
Xini
u
Lian
jian
DISTANCE IN KILOMETERS
ELEV
ATIO
N IN
MET
ERS
0
Riverbed Line
58.5
53.3
49.6
44.3
38.5
33.1
24.0
86.0
81.0
73.5
70.0
62.7
29.0
This map was produced by the Map Design Unit of The World Bank.The boundaries, colors, denominations and any other information shownon this map do not imply, on the part of The World Bank Group, anyjudgment on the legal status of any territory, or any endorsement oracceptance of such boundaries.
LAO LONG HU WATERWAY AND PROJECT BRIDGES
CHANNEL IMPROVEMENTS
PROJECT BRIDGES
EXISTING BRIDGE
ROADS
RIVER REACH TO BE WIDENED
SHORT-CUTTING REACH
G U A N G D O N G
S o u t h C h i n a S e a0 40 80 120
KILOMETERS
111°
25°
23°
22°
21°
24°
25°
23°
22°
21°
110° 112° 115° 117°
111°110° 112° 113° 114° 115° 117°116°
24°
XiniuDam
Beiji
ang
Lianjiang
Xijiang
PROVINCE CAPITAL
PROVINCE BOUNDARIES
IBRD 32890
MARCH 2004
For detail seeIBRD 32889
For detail seemap at right
0 1 2 3 4 5
KILOMETERS
SanjiangTown
LongquanVillage
MuzhouTown
SanjiaweiVillage
DongchengVillage
Longquan (Longma)Bridge replacement
HukengBridge
Gouwei Bridgereplacement
Hukeng
Waterway BabaoWaterway
Longquanhai River
Xiezhousha
Waterw
ay
Laolaoxi
Hem
axiW
aterway
Waterway
Laol
aoxi
wayMuzhou Water
Baba
oW
ater
way
Huk
eng
Wat
erw
ay
River reach tobe widened
short-cuttingreach
YinzhouhuW
aterway
APPROXIMATE SCALE
CHINA
FOURTHINLAND WATERWAYS
PROJECTGUANGDONG PROVINCE
LAO-LONG-HUCHANNEL IMPROVEMENTS AND
BRIDGE REPLACEMENT
HONG KONG
H U N A NJ I A N G X I
F U J I A N
G U A N G X I
MACAO
Zhanjiang
Maoming
Zhaoqing
Qingyuang
Shaoguan
Shantou
ShanweiShenzhen
HongKong
HuizhouDongguanFoshan
GUANGZHOU
Heyuan
Meixian
Yangjiang
Jaingmen
