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Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: 57661-CN
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED LOAN
IN THE AMOUNT OF US$100 MILLION
TO THE
PEOPLE'S REPUBLIC OF CHINA
FOR A
SICHUAN WUDU IRRIGATED AGRICULTURE DEVELOPMENT PROJECT
January 20, 2012
China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region
This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s Policy on Access to Information.
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ii
CURRENCY EQUIVALENTS
(Exchange Rate Effective August 16, 2010)
Currency Unit = RMB
RMB1.00 = US$ 0.147
US$1.00 = RMB 6.80
FISCAL YEAR
July 1 – June 30
ABBREVIATIONS AND ACRONYMS
CDD
CEA
Community Driven Development
Consolidated Environmental Assessment
DRC Development and Reform Commission
DSP
DSR
Dam Safety Panel
Dam Safety Report
EG Expert Group
EIRR Economic Internal Rate of Return
FMS Financial Management Specialist
FSR Feasibility Study Report
CY Calendar Year
ICR Implementation Completion Report
MIS Management Information System
MOF Ministry of Finance
MTR Mid-Term Review
MWR Ministry of Water Resources
M&E Monitoring & Evaluation
NCB National Competitive Bidding
NDRC National Development and Reform Commission
O&M
OMS
PCs
Operation and Maintenance
Operation, Maintenance, and Surveillance
Producer Co-operatives
PIP Project Implementation Plan
PMP Pest Management Plan
PLG Project Leading Group
PMO Project Management Office
PRA Participatory Rapid Assessment
RAP Resettlement Action Plan
SIL Specific Investment Loan
SOE Statement of Expenditure
TTL Task Team Leader
WA Withdrawal Application
WUAs Water User Associations
Regional Vice President: Ms. Pamela Cox
Country Director: Mr. Klaus Rohland
Sector Managers: Mr. Paul Kriss and Mr. Vijay Jagannathan
Task Team Leader: Mr. Liping Jiang
iii
CHINA
Sichuan Wudu Irrigated Agriculture Development Project
CONTENTS
I. Strategic Context ............................................................................................................... 1 A. Country Context .................................................................................................................. 1
B. Sectoral and Institutional Context ....................................................................................... 1 C. Higher Level Objectives to which the Project Contributes ................................................ 2
II. Project Development Objectives ...................................................................................... 3 A. PDO..................................................................................................................................... 3 B. Project Beneficiaries ........................................................................................................... 3
C. PDO Level Results Indicators ............................................................................................. 3
III. Project Description ........................................................................................................... 3 A. Project Components ............................................................................................................ 4 B. Project Financing ................................................................................................................ 5
IV. Implementation ................................................................................................................. 6 A. Institutional and Implementation Arrangements ................................................................ 6 B. Results Monitoring and Evaluation .................................................................................... 7 C. Sustainability....................................................................................................................... 8
V. Key Risks and Mitigation Measures ............................................................................... 8
VI. Appraisal Summary .......................................................................................................... 9 A. Economic and Financial Analysis ....................................................................................... 9 B. Technical ........................................................................................................................... 10 C. Financial Management ...................................................................................................... 10
D. Procurement ...................................................................................................................... 11 E. Social................................................................................................................................. 11 F. Environment ...................................................................................................................... 12
Annex 1. Results Framework and Monitoring ............................................................................. 14
Annex 2. Detailed Project Description ........................................................................................ 16 Annex 3. Implementation Arrangements ..................................................................................... 24
Annex 4. Operational Risk Assessment Framework (ORAF) ...................................................... 37 Annex 5. Implementation Support Plan ........................................................................................ 40
Annex 6. Team Composition ........................................................................................................ 42
iv
SICHUAN WUDU IRRIGATED AGRICULTURE DEVELOPMENT PROJECT
PROJECT APPRAISAL DOCUMENT
EAST ASIA AND PACIFIC
EASCS
Date: January 20, 2012
Country Director: Klaus Rohland
Sector Director: John Roome
Sector Managers: Paul Kriss/Vijay Jagannathan
Team Leader: Liping Jiang
Project ID: P121414
Lending Instrument: SIL
Sectors: Irrigation & Drainage (60%);
Water Supply (20%); Agricultural Ext &
Research (20%)
Theme: Rural Services (100%)
EA Category: A
Project Financing Data:
Proposed terms: U.S. Dollar, variable spread loan with a maturity of 25 years, including a six-
year grace period, with level repayment on principle, and a front-end fee of 0.25% ogf the loan
amount.
[ X ] Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other:
Source Total Amount (US$M)
Total Project Cost:
Borrower :
Total Bank Financing:
IBRD:
700.77
600.77
100.00
Ms. Wang Wei, Director IF Division I
Ministry of Finance, People's Republic of China
San Li He, Beijing 100820, China
Tel: (86-10) 68551174; Fax: (86-10) 68551125
Email: [email protected]
Mr. Zhou Lijun, Standing Deputy Director
Municipal Project Management Office
Wudu Water Diversion Management Bureau
Mianyang City, Sichuan Province, China
Tel: (86-816) 2683964; Fax: (86-816) 2689505
Email: [email protected]
Estimated Disbursements (US$M)
FY 2013 2014 2015 2016 2017 2018
Annual 5 15 15 25 30 10
v
Cumulative 5 20 35 60 90 100
Project implementation period: October 2011- December 2017
Expected effectiveness date: August 31, 2012
Expected mid-term review date: December 31, 2015
Expected closing date: December 31, 2017
Does the project depart from the CAS in content or other
significant respects?
○ Yes ● No
If yes, please explain:
Does the project require any exceptions from Bank policies?
Have these been approved /endorsed (as appropriate by Bank
management?
Is approval for any policy exception sought from the Board?
○ Yes ● No
○ Yes ● No
○ Yes ● No
If yes, please explain:
Does the project meet the regional criteria for readiness for
implementation?
●Yes ○ No
If no, please explain:
Project Development objective:
The Project Development Objectives (PDOs) are to: (a) increase the coverage of irrigation
services in the Project Area in order to increase agricultural production; (b) provide water
supply, in bulk, to small rural communities and industries in the Project Area; and (c)
introduce a community-based participatory approach in the management of water facilities and
infrastructure and increase of production capacity of higher-value agro-products in the Project
Area to ensure the sustainable development of agriculture.
Project description [one-sentence summary of each component]
Component 1: Construction of Main Irrigation System (Total cost US$691.03 million, of
which Bank Financing US$97.41 million);
Component 2: Development of CDD-based On-farm Works in Demonstration Areas (Total
cost US$4.49 million, of which Bank Financing US$0.90 million); and
Component 3: Institutional Capacity Building and Project Management Support (Total cost
US$1.44 million with Bank Financing 100%)
Safeguard policies triggered?
Environmental Assessment (OP/BP 4.01)
Natural Habitats (OP/BP 4.04)
Forests (OP/BP 4.36)
Pest Management (OP 4.09)
Physical Cultural Resources (OP/BP 4.11)
Indigenous Peoples (OP/BP 4.10)
Involuntary Resettlement (OP/BP 4.12)
Safety of Dams (OP/BP 4.37)
Projects on International Waters (OP/BP 7.50)
Projects in Disputed Areas (OP/BP 7.60)
● Yes ○ No
● Yes ○ No
○ Yes ● No
●Yes ○ No
○ Yes ● No
○ Yes ● No
●Yes ○ No
● Yes ○ No
○ Yes ● No
○ Yes ● No
vi
Conditions and Legal Covenants
Financing
Agreement
Reference
Description of Condition/Covenant Date Due
Project
Agreement
1) Sichuan shall maintain the organizational structure
established for the purpose of implementing the Project
(the Provincial Project Leading Group, the Municipal
Project Leading Group, and the Municipal Project
Management Office, County Project Leading Group in
each of the Project Counties and County Project
Management Office in each of the Project Counties).
Until
12/31/2017
2) Sichuan shall apply in the implementation of the Project,
the Project Implementation Plan, the RAP, the EMP, the
PMP, the annual implementation plan and the annual
dam safety action plan, all in a manner satisfactory to the
Bank. Sichuan shall not amend, suspend, or waive any
such plan or any provision thereof, without the prior
concurrence of the Bank.
Until
12/31/2017
3) Sichuan shall: (a) carry out measures satisfactory to the
Bank for improving the living standard of Displaced
Persons affected by the implementation of the Project in
accordance with the provisions of the RAP; and (b)
include appropriate and adequate provisions in the
contracts entered into for implementing the Project to
ensure the fulfillment of the requirements set out in the
EMP together with specification of sanctions to be
imposed or other measures to be taken for failure to carry
out said requirements.
Until
12/31/2017
4) Sichuan shall engage and retain the services of
independent consultants to carry out external monitoring
and reporting, on an annual basis, and shall implement
the recommended measures in a prompt and efficient
manner satisfactory to the Bank, in order to improve
compliance with the RAP.
Until
12/31/2017
5) Sichuan shall: (a) maintain the Dam Safety Panel under
terms of reference, including a time-table and adequate
budget for its activities, satisfactory to the Bank to, inter
alia, review the safety aspects of Upstream Dams,
recommend any needed safety measures, review and
provide comments on the Dam Safety Plans, and review
the design and construction of the Project Dam; and (b)
cause the Dam Safety Panel to carry out its function as
set out in its terms of reference and to provide to the
Bank and Sichuan annual reports of findings and
recommendations for any safety related measures.
Until
12/31/2017
vii
6) Sichuan shall prepare and provide to the Dam Safety
Panel and the Bank the Dam Safety Plans for the Project
Dam in accordance with a timeframe related to the
progress of the design and construction of said Dam
satisfactory to the Bank. Sichuan shall implement said
Plans in a manner satisfactory to the Bank, and shall not
amend, abrogate, repeal, waive, or fail to enforce any
provisions of any such Plan without the prior concurrence
of the Bank.
Until
12/31/2017
7) Sichuan shall establish and implement satisfactory
arrangements for the periodical inspection of the
Upstream Dams and the Project Dam.
Until
12/31/2017
8) Sichuan shall monitor and evaluate the progress of the
Project and prepare Project Reports for the Project. Each
such Project Report shall cover the period of one
calendar semester, and shall be furnished to the Bank by
February 15 and August 15 each year, beginning on
August 15, 2012.
Until
12/31/2017
9) Sichuan shall, not later than June 30, 2015, review with
the Bank (mid-term review) the progress made in the
implementation of the Project, together with any
recommendation the Borrower or the Bank may have on
measures to be taken to ensure the efficient completion of
the Project and to achieve the objectives thereof.
12/31/2015
10) Sichuan shall install and operationalize for use the
Procurement and Financial Management Information
System no later than Forty-five (45) days after the
Effective Date, and thereafter apply the system in order
to monitor the entire procurement process and financial
transactions under the Project in a manner satisfactory to
the Bank.
Until
12/31/2017
11) Sichuan shall, with respect to the irrigation system
constructed under the Project, in order to ensure the
proper operation and maintenance of such system, at least
three months prior to the completion of each facility
under such system, prepare and furnish to the Bank for
review and comment a proposed operation and
maintenance plan for such facility, including institutional,
technical and financial arrangements, and, thereafter,
ensure the prompt implementation of each such plan,
taking into account the views of the Bank thereon.
Until
12/31/2017
viii
12) Sichuan shall, in accordance with provisions of the
WUA Manual, take adequate steps to facilitate the
establishment of a WUA in each Project County with the
objective of securing the participation of the WUA in
carrying out on-farm works under the Project as well as
in the operation and maintenance of said works after their
completion.
Until
12/31/2017
13) Sichuan shall within four months of completing each
branch canal under the Project prepare a program, in
accordance with the irrigation development plan of
Mianyang City, satisfactory to the Bank, for extending
the community demand driven approach of carrying out
on-farm works from the demonstration areas under the
Project to other parts of the Project Area serviced by each
said canal. Sichuan shall cause Mianyang City to allocate
the required budgetary and other resources needed for
implementing said program, and to implement said
program in accordance with a timeframe and
arrangements satisfactory to the Bank.
12/31/2017
1
I. Strategic Context
A. Country Context
1. China, with an annual per capita freshwater resource of about 2,160 m3, is a
water-stressed country. The severity of the problem is further worsened by the uneven
spatial and temporal distribution of these resources. Water availability in different parts
of China varies greatly due to the characteristics of its climate and topography. This
spatial disparity does not match the distribution of China’s population, arable land, and
productivity. The situation would worsen as demand increases due to population increase
and more competition for water use would put more stress on the available water
resources and on water quality. Furthermore, climate change impact is aggravating water
scarcity in China. Over the past 20 years, while main stream water flows have declined
substantially and the precipitation pattern is anticipated to be more uncertain, the uneven
spatial and temporal distribution of the precipitation will worsen the already serious water
shortage situation, especially in south-west China.
2. China’s general strategy for addressing the main development issues on water, as
indicated in its Twelfth Five-Year Plan (2011-2015) and Medium-term Plan of Water
Resources Development is to enforce strict water resources management in all water use
sectors, in addition to construction and rehabilitation of water engineering works,
particularly in irrigated agriculture. At the same time, the government strongly
emphasizes integration between increase in water use efficiency and increase in farmer
income and agricultural production. Government policy also recognizes the need for
institutional reform, including increasing farmer participation and ownership in irrigation,
and strengthening the organizations responsible for operation and maintenance (O&M).
B. Sectoral and Institutional Context
3. With China’s rapid social and economic development since 1970s, many parts of
the country are experiencing growing water scarcity. Three different types of water
scarcity can be distinguished: (a) physical scarcity occurs when there are not sufficient
water resources available to meet all water demands, including environmental flows; (b)
pollution scarcity as a result of limited available clean water for water users, and high
cost of providing safe water; and (c) economic scarcity occurs when there is a lack of
investment in water infrastructure or a lack of human, institutional and/or financial
capacity to satisfy the demand for water.
4. Experiences and lessons in China and other parts of the world suggest that the
strategic focus to address water shortage issues should be different depending on the type
of scarcity experienced and on the conditions that exist. For example, in areas with
physical scarcity, the focus should be on reducing consumptive use (evapotranspiration,
ET) while still trying to increase farmer incomes, by means of increasing the value (in
RMB Yuan) of agricultural production (and/or other uses) per unit of consumed water
(i.e. water productivity in terms of consumptive use), possibly by integrating water
2
management basin-wide. For the pollution-related water shortages, the focus should be
on reducing pollution discharges into water bodies, including pollution from non-point
sources, possibly with a basin-wide participatory approach for pollution control. In areas
with economic water scarcity, engineering measures for improving the irrigation
infrastructure, combined with agronomic measures and participatory irrigation
management measures, should be promoted in the agricultural sector to increase
agricultural production and farmer incomes. In areas with mixed types of water scarcity,
all of the above measures would need to be applied.
5. Mianyang City is relatively abundant in water resources (with over 1,100 mm of
annual rainfall and the water-rich Fujiang river flowing through the City), but the project
area is very short of water for irrigated agriculture, mainly because of the relatively
uneven temporal and spatial distribution of water resources. Hence it can be considered
an area with economic scarcity.
6. Four key development issues were identified in water resources development and
utilization in the project areas: (a) main irrigation infrastructure systems and on-farm
works (lateral, sub-lateral and farm ditches) need to be constructed or rehabilitated
urgently to help agricultural production recover from the big earthquake; (b) water
shortages and frequent droughts impede agricultural development; (c) water use
efficiency and productivity are very low (water use in irrigated agriculture accounts for
66% of the total water use, and the actual consumptive use of water accounts for only
20% of the total available water resources in the City); and (d) sustainability of
constructed water infrastructure has not been ensured. Operation and Maintenance
(O&M) for both main/branch systems and on-farm works (lateral, sub-lateral and farm
ditches) needs to be improved.
7. The proposed project would support and complement the Government’s strategy
and its 12th
Five-year plan (2011-2015) in such water shortage areas to increase
agricultural production and farmer incomes with integrated measures.
C. Higher Level Objectives to which the Project Contributes
8. The proposed project is consistent with the Bank Group’s 2006-2010 Country
Partnership Strategy (CPS) for China, discussed by the Executive Directors on May 23,
2006. The proposed project would support Pillar 2 of the CPS to reduce poverty,
inequality and social exclusion, through promoting balanced urbanization, sustaining
rural livelihoods, and expanding access to basic social and infrastructure services,
particularly in the rural areas, and Pillar 3 to manage resource scarcity through
conserving water resources. It would also support the new China Country Partnership
Strategy (China CPS) for 2011-2015, under preparation.
3
9. The higher level objectives to which the proposed project would contribute are:
(a) to help significantly improve livelihoods of poor farmers in the Project Area1 by
shifting the current reliance on rain-fed agriculture to irrigated agriculture; and (b) to
showcase and disseminate an innovative approach to Community Driven Development
(CDD) in the project area, which enables farmers to decide on ways to increase their
incomes, with assistance as necessary from local government.
II. Project Development Objectives
A. PDO
10. The Project Development Objectives (PDOs) are to: (a) increase the coverage of
irrigation services in the Project Area in order to increase agricultural production; (b)
provide water supply, in bulk, to small rural communities and industries in the project
area; and (c) introduce a community-based participatory approach in the management of
water facilities and infrastructure and increase of production capacity of higher-value
agro-products in the Project Area to ensure the sustainable development of agriculture.
B. Project Beneficiaries
11. The key beneficiaries of the project are about 1.35 million poor farmers (397,000
households) who will be able to receive reliable irrigation water supplies and change
from mainly dry farming to irrigated agriculture and boost their agriculture production.
Other key beneficiaries are about 1.7 million poor people in rural and small urban
communities, in addition to the industries in Mianyang City and other cities who will be
provided by water supply, in bulk, from the irrigation infrastructure for drinking and
industrial purposes.
C. PDO Level Results Indicators
12. The PDO would be monitored and evaluated during project implementation
through five PDO-level Results Indicators: (a) expanded new irrigated areas; (b)
increased annual value of agricultural production; (c) increased annual amount of
industrial and domestic water supply; (d) the number of farmers (and female farmers)
benefiting from the supplementary irrigation; and (e) the number of O&M plans prepared
and implemented by water management units for main irrigation systems and by WUAs
for on-farm irrigation systems.
III. Project Description
1 The project area refers to the irrigated area of 70,200 hectares covered by the Wudu Second-phase
Irrigation Scheme, including 60,250 hectares under Xizi Main Canal, and 9,950 hectares directly under
Wudu Reservoir.
4
A. Project Components
13. The Project, which constitutes the second phase of the Wudu Scheme of the
Sichuan Province of the Borrower, consists of the following parts.
Component 1: Construction of Main Irrigation Systems1 (Total cost US$691.03 million,
of which Bank Financing US$97.41 million)
14. Construction and operation of the second phase of the Wudu Scheme to irrigate
about 70,200 hectares of land as well as to supply water to urban and rural areas, and
water to industries in the project area, and consisting of two systems:
(1) Construction of branch canals from the right and left segments of the Wudu
Reservoir to irrigate areas directly under said Reservoir.
(2) Construction of a new main irrigation system consisting of:
(a) Construction of Xizi Main Canal with a total length of about 108 km to divert
water from the Wudu Reservoir to irrigate areas under said Canal in the
Project Area and consisting of numerous structures including tunnels,
aqueducts, siphons, gates and other structures;
(b) Construction of a reservoir at Jinfeng with intake from the Xizi Canal with a
total storage capacity of 98 million cubic meters consisting of tunnels,
aqueducts, siphons, gates and other structures including an asphalt concrete
core sock-fill dam with a height of 88m and a chest length of 454.87m, an
irrigation intake and a tunnel to supply and regulate the supply of water to the
irrigation system to be constructed; and
(c) Construction of Jinlong sub-main canal and 16 branch canals consisting of
numerous structures including tunnels, aqueducts, siphons, gates and other
structures to divert water to irrigate areas covered under the Xizi Main Canal
to be constructed.
Component 2: Development of CDD-based On-farm Works in Demonstration Areas
(Total cost US$4.49 million, of which Bank Financing US$0.90 million)
15. Carrying out of on-farm development works under community demand driven
(“CDD”) approach in selected demonstration areas in the counties of Jiangyou, Zitong
and Yanting of Mianyang City covering about 766 hectares within the irrigated area
covered by the second phase of the Wudu Water Diversion and Irrigation Scheme and
consisting of:
(1) Construction of on-farm works including 1 lateral canal and 3 sub-lateral canals
with a total length of about 48 km;
(2) Establishment and development of Water Users’ Associations (WUAs) and
enhancement of producer co-operatives based on community demand driven
1 The Bank would finance the first section (23 km) of Xizi Main Canal, Jinlong sub-main canal (24 km)
and 10 branch canals (228 km). The rest of the main systems will be fully financed by government.
5
approach around a lateral canal area or sub-lateral areas in each demonstration
area to organize and implement the construction, operation and maintenance of
on-farm works; and
(3) Provision of an integrated package of agricultural inputs and supporting services
in each demonstration area to small holder agricultural producers and farmer
groups to maximize the benefit of irrigated water delivered to the field and help
increase farmer’s production and income.
Component 3: Institutional Capacity Building and Project Management Support (Total
cost US$1.44 million with Bank financing 100%)
16. Provision of technical assistance for the institutional strengthening of the Project
Counties and Sichuan to implement the Project including:
(1) Capacity building through, inter alia, study tours and training;
(2) Consulting services and office equipment; and
(3) Acquisition of vehicles to provide necessary technical support for implementing
the activities under the Components 1 and 2 of the Project.
B. Project Financing
17. Lending Instrument. The Project would be financed by an IBRD Specific
Investment Loan (SIL) in the amount of US$100.00 million. The Bank Loan will be on
standard IBRD terms for a US Dollar denominated, variable spread loan (VSL) based on
six-month LIBOR, plus an additional variable spread. Commitment-linked repayment in
25 year period, including a 6 year grace period, level repayment of principal. The above
terms are consistent with the Borrower’s choice of similar Bank financed projects.
18. Project Financing. Table below summarizes the project cost by component and
by source of financing.
COST BY COMPONENT (US$ MILLION)
Project Component IBRD Beneficiaries Government Total
A. Construction of Main Systems 97.41 0.00 593.62 691.03
Xizi Main Canal 31.05 0.00 306.66 337.71
Jinfeng Reservoir 0.00 0.00 136.19 136.19
Main Branch Canals 66.37 0.00 150.77 217.14
B. CDD-based On-farm Demonstration 0.90 1.13 2.46 4.49
Construction of On-farm Works 0.75 1.13 2.30 4.18
Establishment of CDD-based WUAs 0.10 0.00 0.00 0.10
Agricultural Input and Supporting 0.04 0.00 0.17 0.21
C. Capacity Building and Management 1.44 0.00 0.00 1.44
Institutional Capacity Building 0.65 0.00 0.00 0.65
Project Management Support 0.79 0.00 0.00 0.79
Total Project Cost 99.75 1.13 596.08 696.96
Interest during Construction 0.00 0.00 3.56 3.56
Front-end Fees 0.25 0.00 0.00 0.25
Total Financing Required 100.00 1.13 599.64 700.77
6
19. Additional Local Financing1. An investment program for extension of the CDD-
based on-farm demonstration program developed under the project would be prepared
and approved by the government of each of the six project counties. The county
governments and project beneficiaries would provide, through their internal investment
programs outside the project, additional financing for: (a) construction of on-farm
irrigation systems (laterals and sub-laterals and farm ditches) to fully cover the project
area after the main systems are completed under the project; (b) establishment of CDD-
based WUAs to be responsible for O&M of the completed on-farm irrigation systems;
and (c) provision of agricultural inputs and supporting services to maximize the benefits
of water delivered. Sichuan shall within four months of completing each branch canal
under the Project prepare a program, in accordance with the irrigation development plan
of Mianyang City, satisfactory to the Bank, for extending the community demand driven
approach of carrying out on-farm works from the demonstration areas under the Project
to other parts of the Project Area serviced by each said canal. Sichuan shall cause
Mianyang City to allocate the required budgetary and other resources needed for
implementing said program, and to implement said program in accordance with a
timeframe and arrangements satisfactory to the Bank.
IV. Implementation
A. Institutional and Implementation Arrangements
20. The proposed organizations for project management and implementation have
been established in Mianyang City and its three counties (Jiangyou, Zitong and Yanting).
Responsibilities for project management and implementation are briefly presented below
and the flow of funds and accountabilities for financial reporting are detailed in Annex 3.
21. Provincial Level. The Provincial Project Leading Group chaired by the Director
General or the Deputy Director General of the Sichuan Provincial Finance Department,
or his/her delegate, comprising all relevant agencies at the Provincial level and
responsible for liaising with central government agencies concerning the Project and
providing overall policy guidance.
22. Municipal Level. The Municipal Project Leading Group at the municipal level in
Mianyang City of Sichuan chaired by the Vice Mayor of Mianyang City and consisting of
members from the Municipal Finance Bureau and all other relevant agencies of the City
and responsible for overseeing the overall implementation of the Project, making decision
on key Project issues and carrying out interagency coordination at the municipal level as
1 According to the government’s internal procedures on water investment programs, for a central
government financed irrigation project, the funds from the central or provincial government should
normally be used to finance construction of main irrigation systems only (dams, main canals and branch
canals), rather than construction of on-farm irrigation systems (lateral canals, sub-lateral canals and farm
ditches). The latter should be financed by county government and beneficiaries in separate projects after
main system is completed. This project is a central government financed project and included in the Bank’s
lending program for the purpose of construction of main irrigation systems in the earthquake stricken area
of Sichuan Province.
7
well as coordination with the Provincial Project Leading Group referred to in paragraph
21 above. The Municipal Project Management Office located within the Sichuan Wudu
Water Diversion Management Bureau (the Bureau) and responsible for Project
management and implementation at the municipal level as well as reporting on progress
and implementation issues to the Bureau and the Municipal Project Leading Group.
23. In addition, an Expert Group (EG), and a Dam Safety Panel (DSP) have been
established at the municipal level. The EG would provide technical support to the
Municipal PMO. The DSP will assist in ensuring that the project is implemented in
compliance with the Bank’s policy on Safety of Dams (OP 4.37) under terms of reference
acceptable to the Bank. The EG will provide guidance to the county PMOs to carry out
its responsibilities.
24. County Level. A County Project Leading Group in each of the Project Counties
responsible for Project implementation, coordination and decision making at the county
level. A County Project Management Office in each of the Project Counties located
within the respective county level bureau of the Wudu Scheme and responsible for
Project management and implementation at the respective county level as well as
reporting on progress and implementation issues to the respective County Project
Leading Group.
25. In addition, an expert group for agro-water inputs and services would be
established at the county level to provide technical guidance to development and
implementation of CDD-based WUA Demonstration Program.
B. Results Monitoring and Evaluation
26. The Municipal PMO will be responsible for designing and putting in place a
suitable M&E system, acceptable to the Bank, with a focus on measuring project
outcomes and impact. An independent institute will be contracted to prepare the general
design of the M&E system supported by the Municipal PMO, and carry out project-wide
data collection and processing according to the design supported by the county PMOs
during the period of project implementation. The institute will also consolidate data
collected and prepare periodic M&E reports as required. The M&E design and work
program are included in the Project Implementation Plan (PIP). The complete set of PDO
level result indicators (5) and intermediate result indicators (10) are included in Annex 1.
27. The Municipal PMO will also develop and set up a computer-based Procurement
and Financial Management Information System (PROMIS) which will automatically
monitor the entire procurement process and financial transactions and will cross-check
data for errors and alerts authorities in a timely way. PROMIS will also provide
consolidated data for intermediate result indicators 6, 7, 8 and 9.
28. M&E reports will be submitted to the Bank annually. A mid-term review (MTR)
report of the project will be prepared and provided to the Bank before December 31,
2015, and an implementation completion report (ICR) upon project completion.
8
C. Sustainability
29. The strategic policies of GOC, as well as of the provincial, city and county
governments, support the attainment of project objectives, and all levels of government
have strong ownership of the project. The provincial government is paying close
attention to the preparation and implementation of this project. At the municipal level, the
current 12th
Five-Year Plan (2011-2015) proposes detailed measures to speed up the
development of irrigated agriculture. More recently, a number of far-reaching cropping
pattern adjustment measures have been adopted to increase farmers’ incomes with the
adoption of the production of cash crops. With project design closely aligned to these
goals, the municipal and county governments have fully committed to the extension of
the CDD-based on-farm demonstration (Component 2) to other parts of the project area
to ensure sustainability and increased agricultural productivity.
30. The project is designed to be sustainable and replicable through the establishment
of policies and regulatory and institutional frameworks for more environmentally
sustainable economic growth and resource management. These policies and frameworks
will be reviewed, approved, and issued as official documents for implementation by the
Mianyang City beyond completion of the project, and will also be extended by the
Provincial Water Resources Bureau to other parts of Sichuan Province.
V. Key Risks and Mitigation Measures
31. The proposed project is a technically straight-forward project to be implemented
by project management offices that are already established in Mianyang City; these have
rich experience in implementing similar national irrigation projects and one Bank
financed project. The overall project risk is moderate. Risks identified at the project level
are manageable and proposed mitigation measures are reflected in the project design, and
in the project implementation plan (PIP). The main risks identified to the achievement of
the PDO and the mitigation measures for these risks are summarized below:
(a) Institutional Capacity. Staff at both municipal and county PMOs lack
familiarity with the Bank requirements and procedures. Frequent training will be
provided on Bank procedures and guidelines on financial management,
procurement, and safeguards during project implementation. The project M&E
and MIS system will help the municipal and county PMOs to monitor the
operations of project assets. In addition, a comprehensive construction
programming plan has been developed which will guide the PMOs to effectively
conduct and monitor the project implementation. The project FM Manual will
provide guidance to the municipal and county level PMOs.
(b) Safeguards. These risks refer to the possible delay or failure on compliance with
the Bank policies on environment, resettlement and dam safety. To militate
against the risk of failure to comply with Bank policies on environment,
resettlement and dam safety, sufficient funds are required to be allocated in the
9
annual budget for implementing the EMP, including for regular workshops and
training for compliance with Bank safeguards requirements.
(c) Additional Local financing. In order to ensure that adequate and timely
financing is provided by prefecture/county governments for on-farm works
(lateral, sub-lateral canals and farm ditches) which are not financed by the Bank,
Bank implementation support missions will work closely with the provincial and
municipal governments to confirm that the necessary additional funds are
confirmed to be available for construction of these works.
VI. Appraisal Summary
A. Economic and Financial Analysis
Economic Analysis
32. The major quantifiable benefits (on an incremental basis) of the project are
derived from: (a) the agricultural production from improved and increased irrigation
areas; (b) value of industrial uses and; (c) value of water for domestic use. The economic
analysis is conducted for the Wudu Second-phase Irrigation Scheme as a whole, covering
all the project interventions. The project ERR is estimated at 13%, and the NPV (at a
discount rate of 12%) is estimated at US$278.98 million.
33. The project would generate numerous non-quantifiable social and environmental
benefits, which are not included in the analysis. These include: (a) flooding
control/drainage function provided by the irrigation canal system (main canal and branch
canals in particular); (b) development of improved water management, social capital and
institutional capacity; and (c) the improved quality of soil and agricultural products due
to the adoption of good agricultural production practices (e.g., Integrated Pest
Management).
Financial Analysis
34. Farmers’ income. Financial analysis was conducted to gauge project impact on
farmers’ incomes, and to set the minimum water price charged for reservoir water users
to cover the O&M costs. Crop budget and farm models were formulated under “with”
and “without” project situations to gauge the financial attractiveness to farmers from: (a)
improved crop yields; (b) changed cropping pattern (shifting to higher value crop); and
(c) increase cropping intensities. The results show farmers’ income would increase
substantially (at RMB Y1, 966/household); and therefore the project is financially
attractive to the farmers.
35. Water Charges. This multi-purpose project is classified as both a national and a
provincial “key public sector investment project”, particularly for flooding control and
drinking water supply. Water prices are determined by the planning and finance agencies
of the local government. Water charges for irrigation and rural drinking water supply are
to be set at RMB0.27 Yuan/ m3 to cover only the O&M costs for the main system.
10
Meanwhile, water charges for township industrial water supply are to be set at RMB0.77
Yuan/m3 to fully cover the cost.
36. Fiscal Impact. Of the total project financing of US$ 700.77 million, US$100
million would be covered by the World Bank Loan, the rest of US$600.77 million would
be covered by counterpart funding. The central government is expected to contribute
some US$285.29 million (RMBY1.940 billion) out of counterpart funding and the
balance of US$315.48 million will be met by the Provincial Government, Mianyang
Municipal Government and related county governments through annual budget
allocations. Beyond the construction period, the fiscal impact of the project will be
minimal as water charges would fully cover the O&M costs of the major infrastructure
(tertiary canals above). The rehabilitation costs of the on-farm works, as well as their
O&M costs, would be borne by the WUAs.
B. Technical
37. Qualified design institutes prepared the feasibility study and preliminary and
detailed designs for the Wudu Second-phase Irrigation Scheme. The design followed
Chinese national technical standards and benefited from the lessons learned from the
Wudu First-phase Irrigation Scheme built in 2002. It also took into account the 2008
earthquake which hit some of the project areas and the design of the scheme structures in
those areas was adjusted to resist an earthquake of magnitude of 7.0 on Richter scale.
During the design several alternatives were examined including several routes for the
Xizi Main Canal, tunnels versus aqueducts, and siphons versus aqueducts.
Environmental concerns and resettlement, as well as cost effectiveness, were considered
during the design in order to arrive at the optimal design. Detailed designs for the main,
sub-main and branch irrigation infrastructures would be prepared as soon as possible after
completing the preliminary design, while the design for the on-farm works would be
completed based on agreements reached between the PMO and the WUAs about the
priority of works to be undertaken. This process would ensure enough consultations and
interactions between the designers, PMO consultants and the WUAs. The works would
be suitably packaged to attract qualified contractors and contract management and
construction supervision would be carried out with the assistance of qualified engineers.
38. Project works are relatively complex, especially the canal systems, since they
involve construction of numerous sluice gates, tunnels, aqueducts and siphons, as these
systems lie in mountainous areas with difficult topographic terrain. However, Sichuan
Province has good experience in such construction and successfully implemented the
IDA funded Wudu First-phase Irrigation Scheme in 2002. In addition, the Wudu
Diversion Management Bureau had primary responsibility for constructing the major
Wudu Dam, which was completed in 2010.
C. Financial Management
39. Bank loan proceeds, including oversight of the Designated Account, will be
managed by Sichuan Provincial Finance Bureau (SPFB). A financial management
11
capacity assessment has been conducted by the Bank and actions to strengthen financial
management capacity have been agreed with the relevant implementing agencies. The
FM assessment has concluded that with the implementation of these proposed actions, the
financial management arrangements will satisfy the Bank’s minimum requirements under
OP/BP 10.02. Annex 3 provides additional information on financial management.
D. Procurement
40. Procurement under the project would be managed by the Municipal PMO. The
procurement capacity assessment conducted by the Bank confirmed that the Municipal
PMO has adequate procurement experience and has qualified procurement staff.
However, local procurement procedures and practices differ from the Bank’s procedures
and the procurement staff as well as the officials responsible for approving procurement
need to update their knowledge about the Bank procurement procedures.;. Mitigation
measures have been agreed with the Municipal PMO. The procurement plan for both
Bank financed projects and Government funded contracts was finalized at appraisal, and
will be updated at least annually (or as required) to reflect project implementation needs.
See Annex 3 for more details.
E. Social
41. The Project will benefit 1.35 million farmers in the three northern counties of
Jiangyou, Zitong and Yanting in Sichuan Province, which are frequently affected by
drought. The beneficiary farmer communicates will directly participate in sub-project
selection and design, and implement the on-farm work with technical and financial
support from local governments. Women’s membership and participation in governance
of WUAs would be increased. The project will incorporate a CDD approach into WUA
management by integrating village councils’ roles in CDD with WUA functions in local
irrigation management.
42. Negative social impacts of the project are land acquisition and resettlement in the
three rural counties. The Bank supported project includes construction of a part of Xizi
main canal (23.19 km of 108.18 km in total) and 11 branch canals (231.15 km) that will
requisition about 4,245 mu of village land in 136 villages, of which 2,318 mu is
farmland. About 3,848 farmers in 1,063 households will be affected, of whom 990
people in 264 households will lose their houses as well. In addition, the main Wudu
Phase II program will requisition 10,037 mu (669 ha.) of land and remove 185,309 m2 of
structures that will relocate 3,525 people. 4,716 people will require restoration of their
livelihoods.
43. A Resettlement Plan (RP) for the overall Wudu Phase II resettlement has been
prepared. In addition, a RAP has been prepared for the proposed Bank project, which is
in compliance with Bank requirements. This RAP includes a section on resettlement in
the entire Wudu Phase II, as well as a due diligence report on the already completed
Wudu reservoir resettlement. The RAP has been disclosed locally and in the Bank
InfoShop.
12
F. Environment
44. The Project is classified as a “Category A” project based on the type, location,
sensitivity, and scale, as well as the nature and magnitude of its potential environmental
impacts of the Wudu Second-phase Water Diversion and Xizi Irrigation Scheme and the
Wudu Reservoir. Environment Assessment (EA) reports acceptable to the Bank were
prepared in accordance with national requirements and the Bank’s OP/BP/GP 4.01. The
reports include an: (a) EA summary; (b) EA; and (c) Environmental Management Plan
(EMP). As the project triggers Bank safeguard policies on Natural Habitats, Safety of
Dams, and Pest Management, the reports on dam safety and a Pest Management Plan
(PMP) acceptable to the Bank have been prepared.
45. The EA concluded that the Project will bring significant positive impacts to the
natural and socio-economic environments. The main environmental issues of the project
are the soil erosion caused by construction activities and potential pesticides issues (if not
well managed) during the operational phase. The project has integrated mitigation
measures into the design, construction and operational phases. All Project investments
have been designed to avoid or minimize adverse impacts on the physical environment by
optimizing the canal routes, access roads routes, dam site selection, and spoil disposal
sites selection etc. Preventive and mitigation measures during the construction and the
operation phases have been prepared and are noted in the EMP and PMP. Proper
implementation of these measures can either minimize impacts to an acceptable level or
eliminate them.
46. A two-stage public consultation, including expert consultations, questionnaires,
symposia, and interviews, was conducted with the different stakeholders of the proposed
project. The majority of those consulted expressed strong support for the project, and
accepted short-term inconvenience, such as noise and dust during construction.
Information about the project was disclosed in January and September 2010. The
availability of the EA reports, and how to access to them, was announced in “Mianyang
Daily” on December 2, 2010. The EA, EMP, EA Summary, Dam Safety Report, and
PMP were disclosed at the website of different government agencies. All the
Environmental safeguard documents mentioned above were disclosed at the Bank Beijing
office website and at the Infoshop in Washington, D. C. on December 16, 2010.
47. Safety of Dams. The Project triggers Dam Safety Safeguard Policy (OP 4.37) as
the project sites are downstream of: the existing Heping Dam; the Wudu dam, which is
under construction; and the Jinfeng dam, which is to be constructed. Failure of these
upstream dams could cause extensive damage to or failure of some or all of the
investments under the Project. In addition, reservoirs formed by the Wudu and Jinfeng
dams would provide water to water users in the project area.
48. The government, as the owner of these dams, has: (a) strengthened the existing
Heping dam in 2010 through remedial works; (b) prepared Operation, Maintenance and
13
Surveillance Plan (OMS) and Emergency Preparedness Plan (EPP) for the Wudu dam;
and (c) prepared draft OMS and EPP outlines for the Jinfeng dam.
49. During project implementation, the Bank, together with the Dam Safety Panel
employed by the PMO, will supervise implementation of the dam design and
construction; and review the safety status, and the O&M of these dams to ensure
compliance with the Bank’s OP 4.37, Safety of Dams.
14
Annex 1. Results Framework and Monitoring SICHUAN WUDU IRRIGATED AGRICULTURE DEVELOPMENT PROJECT
Results Framework
Project Development Objective (PDO): The Project Development Objectives (PDOs) are to: (a) increase the coverage of irrigation services in the Project Area in order to
increase agricultural production; (b) provide water supply, in bulk, to small rural communities and industries in Mianyang City; and (c) introduce a community-based participatory
approach in the management of water facilities and infrastructure and increase of production capacity of higher-value agro-products in the Project Area to ensure the sustainable
development of agriculture.
PDO Level Results Indicators
Co
re
Unit of
Measure Baseline
Cumulative Target Values Frequency Data Source/
Methodology
Responsibility
for Data
Collection
Description
(indicator
definition etc.)
2012 2013 2014 2015 2016 2017
1. Increased new effective
irrigated area with the project 10,000
Mu 0.00 0.00 0.00 14.95 39.08 78.80 92.96
Once a
year
Design and
actual Data Wudu Bureau
By indepen-
dent consultant
2. Annual value of agricultural
production per mu Yuan/yr 1,450 1,450 1,450 1,650 1,750 1,850 2,060
Once a
year
Data collected
in the field Wudu Bureau
By indepen-
dent consultant
3. Annual amount of industrial
and domestic water supply
10,000
m3/yr 9,525 9,525 11,000 13,000 14,000 15,000 16,066
Once a
year
Design and
actual Data Wudu Bureau
By indepen-
dent consultant
4. Number of farmers (and
female1 farmers) benefiting from
the supplementary irrigation
10,000
Persons 0 0 0 60 80 110 135
Once a
year
Data collected
in the field Wudu Bureau
By WUAs or
villages
5. Number of O&M plans
prepared and implemented for
both main and on-farm systems
Plan 0 0 0 0 10 20 30 Twice a
year
Data collected
in the field Wudu Bureau
By indepen-
dent consultant
INTERMEDIATE RESULTS
Intermediate Result Indicators (Component One): Construction of Main Irrigation Systems
6. Length of Xizi canal completed Km 0.00 0.00 0.00 48.53 77.28 90.50 108.177 Twice a
year
Data collected
on site Wudu Bureau
By supervision
engineer
7. Length of sub-main or branch
canals completed Km 0.00 1.37 3.24 86.14 201.84 345.18 345.18
Twice a
year
Data collected
on site Wudu Bureau
By supervision
engineer
8. Height of the dam crest
completed for Jinfeng Reservoir m 0 0 0 419 440 477 477
Once a
year
Data collected
on site Wudu Bureau
By supervision
engineer
Intermediate Result Indicators (Component Two): Development of CDD-based On-farm Demonstration Areas
9. Length of lateral and sub-
lateral canals completed Km 0.00 0.00 0.00 57.40 144.28 326.57 479.57
Twice a
year
Data collected
on site Wudu Bureau
By supervision
engineer
10. Irrigation water use efficiency
increased in the irrigation area % 35 - - 80 80 80 80
Once a
year
Measured
Data Wudu Bureau
Measured in the
field
11. Annual net income of farmers
increased with water provided by Yuan/yr 2,680 - - 3,000 4,000 5,000 5,200
Once a
year
Data collected
in the field Wudu Bureau
By indepen-
dent consultant
15
the project in the project areas
12. Agricultural value increased
per unit of water Yuan/m3 6.50 - - 7.00 8.00 9.00 10.70
Once a
year
Data collected
in the field Wudu Bureau
By indepen-
dent consultant
13. Increased number of female
membership for WUAs and
Producer Groups (PGs)
Person 0 35 40 50 60 70 80 Twice a
year
Data surveyed
in the field Wudu Bureau
By indepen-
dent consultant
Intermediate Result (Component Three): Institutional Capacity Building & Project Management
14. Number of PMO staff
familiarized with project concept,
approach and operational
procedures
Person 10 15 20 25 30 35 40 Twice a
year
Data surveyed
in the PMOs Wudu Bureau
By Bank SPN
Mission
15. Number of female project
staff participating in the domestic
and overseas study tours
organized by the project
Person 3 7 17 27 37 47 50 Twice a
year
Data surveyed
in the PMOs Wudu Bureau
By Bank SPN
Mission
1 The number of female farmers will be collected in addition to the total number of farmers.
16
Annex 2. Detailed Project Description SICHUAN WUDU IRRIGATED AGRICULTURE DEVELOPMENT PROJECT
Project Development Objectives (PDOs)
1. The Project Development Objectives (PDOs) are to: (a) increase the coverage of
irrigation services in the Project Area in order to increase agricultural production; (b)
provide water supply, in bulk, to small rural communities and industries in the project
area; and (c) introduce a community-based participatory approach in the management of
water facilities and infrastructure and increase of production capacity of higher-value
agro-products in the Project Area to ensure the sustainable development of agriculture.
2. The key beneficiaries of the project are about 1.35 million poor farmers (397,000
households) who will be able to receive reliable irrigation water supplies and change
from mainly dry farming to irrigated agriculture and boost their agriculture production.
The other key beneficiaries are about 1.7 million poor people in rural and small urban
communities in addition to the industries in the project area who will be provided by
water supply, in bulk, from the irrigation infrastructure for drinking and industrial
purposes.
Project Components
3. The Project, which constitutes the second phase of the Wudu Scheme in Sichuan
Province, consists of the following parts:
Component 1: Construction of Main Irrigation Systems1 (Total cost US$691.03
million, of which Bank Financing US$97.41 million)
4. Construction and operation of the second phase of the Wudu Scheme to irrigate
about 70,200 hectares of land as well as to supply water to urban and rural areas, and
water to industries in the project area, and consisting of two systems:
(1) Construction of branch canals from the right and left segments of the Wudu
Reservoir to irrigate areas directly under said Reservoir; and
(2) Construction of a new main irrigation system consisting of:
(a) Construction of Xizi Main Canal with a total length of about 108 km to divert
water from the Wudu Reservoir to irrigate areas under said Canal in the
Project Area and consisting of numerous structures including tunnels,
aqueducts, siphons, gates and other structures;
(b) Construction of a reservoir at Jinfeng with intake from the Xizi Canal with a
total storage capacity of 98 million cubic meters consisting of tunnels,
1 The Bank would finance the first section (23 km) of Xizi Main Canal, Jinlong sub-main canal (24 km) and 10
branch canals (228 km). The rest of the main systems will be fully financed by government.
17
aqueducts, siphons, gates and other structures including an asphalt concrete
core sock-fill dam with a height of 88m and a chest length of 454.87m, an
irrigation intake and a tunnel to supply and regulate the supply of water to the
irrigation system to be constructed; and
(c) Construction of Jinlong sub-main canal and 16 branch canals consisting of
numerous structures including tunnels, aqueducts, siphons, gates and other
structures to divert water to irrigate areas covered under the Xizi Main Canal
to be constructed.
5. Component 1 would comprise the construction of a new irrigation system to
irrigate about 70,200 ha and supply drinking water in bulk to rural and small urban
communities as well as for the industries in Mianyang City. The system will include
construction of Xizi Main Canal, Jinlong sub-main canal and 16 branch canals. The main
irrigation works of the second-phase irrigation scheme to be financed by the Bank are
shown in Table 1 to this Annex, and the works to be fully financed by government are
shown in Table 2 attached to this Annex.
6. Construction of Xizi Main Canal. The total length of the canal is 108 km. The
open section of the canal will be lined with 10 cm of concrete and there will be numerous
structures as a part of the canal including 61 tunnels with a total length of 53.7 km, 17
aqueducts with a total length of 5 km, 3 siphons with a total length of 2.8 km, 62 gates
and 208 other structures. The flow capacity of the canal would be 28.50 m3
/s at the start
of the canal and 12.50 m3
/s at the end of the canal. The Bank will finance the first
section of the canal with a length of 23 km including 9 tunnels with a total length of 6.04
km, 2 aqueducts with a total length of 1.43 km, 1 siphon with a total length of 1.17 km,
10 gates, and 64 other structures.
7. Construction of Jinlong Sub-Main Canal. The 24.24 km sub-main canal will be
financed by the Bank and includes construction of 22 tunnels with a total length of 8.74
km, 7 aqueducts with a total length of 1.1 km, 3 buried culverts with a total length of 0.54
km, 42 gates and 141 other structures.
8. Construction of 16 branch canals. The total length of the branch canals is 325
km. It would include construction of 159 tunnels with a total length of 72.42 km, 46
aqueducts with a total length of 10.50 km, 18 siphons with a total length of 9.71 km, 34
buried culverts with a total length of 3.87 km, 497 gates and 1740 other structures. The
Bank will finance construction of 10 branch canals with a total length of 228.08 km
including 111 tunnels with a total length of 50.5 km, 37 aqueducts with a total length of
6.06 km, 14 siphons with a total length of 6.26 km, 28 buried culverts with a total length
of 2.91 km, 354 gates and 1,220 other structures.
Component 2: Development of CDD-based On-farm Works in Demonstration Areas
(Total cost US$4.49 million, of which Bank Financing US$0.90 million)
9. Carrying out of on-farm development works under community demand driven
approach in selected demonstration areas in the counties of Jiangyou, Zitong and Yanting
18
of Mianyang City covering about 766 hectares within the irrigated area covered by the
second phase of the Wudu Water Diversion and Irrigation Scheme, comprising:
(1) Construction of on-farm works including 1 lateral canal and 3 sub-lateral canals
with a total length of about 48 km;
(2) Establishment and development of Water Users’ Associations (WUAs) and
enhancement of Producer Co-operatives based on community demand driven
approach around a lateral canal area or sub-lateral areas in each demonstration
area to organize and implement the construction, operation and maintenance of
on-farm works; and
(3) Provision of an integrated package of agricultural inputs and supporting services
in each demonstration area to small holder agricultural producers and farmer
groups to maximize the benefit of irrigated water delivered to the field and help
increase farmer’s production and income.
10. WUA will be organized at the lateral level or sub-lateral level, consisting of
WUGs (Water User Groups) organized in the villages involved. It will organize and
implement the construction of the lateral, sub-lateral canals and farm ditches, including
“Community Participatory Procurement”, coordination of labor inputs, allocation of
water use, tasks of O&M and water fee collection, as well as interaction with water
supply institutes, e.g. in measuring water volume. WUGs will be the main bodies to
implement those tasks.
11. In addition to the annual agricultural inputs from government, Component 2
would include: (a) agro-water services and guidance provided by the expert group
established at the municipal level; (b) agro-water services and advice provided by the
expert groups established at the county level; (c) financial aid provided by farmers self-
help PGs (Producer Groups) to the pilot households for agricultural inputs and to the
poverty-stricken households that voluntarily participate in the project extension; (d)
financial aid needed for providing farmers with co-operative training and training
manuals; (e) financial aid needed for operation and maintenance of the CDD service
platform (webpage) added to the agro-information internet system; and (f) rewards for
grass-root level farmer/co-operative leaders who have made outstanding contributions to
developing CDD and helping increase farmers’ production and incomes.
Component 3: Institutional Capacity Building and Project Management Support
(Total cost US$1.44 million with Bank financing 100%)
12. Provision of technical assistance for the institutional strengthening of the Project
Counties and Sichuan to implement the Project including:
(1) Capacity building through, inter alia, study tours and training;
(2) Consulting services and office equipment; and
19
(3) Acquisition of vehicles to provide necessary technical support for implementing
the activities under component 1 and 2 of the Project.
13. Component 3 would comprise support for project management including
provision of office equipment and vehicles for project supervision and quality control;
consulting services (through expert groups at the municipal and county levels) to support
the PMOs for project management and implementation; establishment of monitoring and
evaluation (M&E); Procurement and Financial Management Information System
(PROMIS); and overseas or domestic workshops, training and study tours to ensure that
the project implementation follows the international practices.
Construction of On-farm Works
14. The governments and beneficiaries would provide, through their internal
investment programs outside the project, additional financing for construction of on-farm
irrigation systems (laterals and sub-laterals and farm ditches) to fully cover the project
area after the main systems are completed under the project. As listed in Table 3, there
will be altogether 42 lateral canals to be constructed after the main systems are
completed, which include 10 lateral canals for Jiangyou County; 5 for Zitong County; 16
for Yanting County; 5 for Shehong County; 3 for Jiange County; and 3 for Nanbu
County.
15. The related county governments and project beneficiaries would also provide
additional funds (outside the project) to construct or rehabilitate farm ditches, and
establish the CDD-based WUAs to be responsible for O&M of the completed on-farm
irrigation systems; and finance agricultural inputs and supporting services to maximize
the benefit of the water delivered to the field, learning from the experience and lessons
from the three demonstration areas supported under the project.
Construction Programming
16. The schedule was developed for construction of civil works with Microsoft
Project, which was optimized to deliver water to the field to benefit farmers as early as
possible and successively section by section from upstream to downstream of the Xizi
Main Canal. Factors that were considered for construction programming include:
a) Technical capacity of local and domestic construction enterprises;
b) Availability of annual counterpart funding from all levels of governments;
c) Construction schedule for main irrigation canal systems;
d) Construction schedule for on-farm irrigation systems;
e) Project procurement schedule; and
f) Local weather conditions
17. Construction Schedule for Works to be financed by the World Bank Loan.
Milestones for construction of the works financed by the World Bank loan are shown in
20
Table 4 below, while a more detailed schedule for the whole project is attached to the
Project Implementation Plan (PIP).
18. Estimated Investment for Civil Works. The total estimated investment for civil
works is US$315 million (RMB2.14 billion). The investment peak will come in 2015
when the annual investment is estimated at about US$80 million (RMB541 million),
which would require sufficient annual counterpart funding to be planned and prepared in
advance.
19. Construction Summary. The construction process would need 88 months from
October 2010 to December 2017 including some temporary engineering works to be fully
financed by the government (access and transportation roads, a diversion tunnel, and
works for power, water supply, and communication lines, etc.). Construction of civil
works financed by the World Bank would span over 76 months from October 2011 to
December 2017.
20. Critical Paths of Construction. The critical paths for construction of the project
are determined by the following three milestones: (a) November 2013 - when water
supply is expected to cover the Huanlian Sub-lateral in the CDD-based WUA
Demonstration Area in Jiangyou County; (b) March 2017 - when sections 1-6 of Xizi
Main Canal are completed, and water supply is expected to cover irrigated areas under
sections 1-6; and (c) December 2017 - when Jinfeng reservoir and sections 7-9 of Xizi
Main Canal below the reservoir are fully completed, and water supply is expected to
cover all irrigation areas under sections 7-9.
21
22
23
24
Annex 3. Implementation Arrangements SICHUAN WUDU IRRIGATED AGRICULTURE DEVELOPMENT PROJECT
A. Project Administration Mechanisms
1. Organizations for project management and implementation have been established
in Mianyang City and its three counties (Jiangyou, Zitong and Yanting). Responsibilities
for project management and implementation are summarized below and the
organizational chart for project management and implementation is shown at the end of
this Annex.
2. Provincial Level. The Provincial Project Leading Group chaired by the Director
General or the Deputy Director General of the Sichuan Provincial Finance Department,
or his/her delegate, comprising all relevant agencies at the Provincial level and
responsible for liaising with central government agencies concerning the Project and
providing overall policy guidance.
3. Municipal Level. The Municipal Project Leading Group at the municipal level in
Mianyang City of Sichuan chaired by the Vice Mayor of Mianyang City and consisting of
members from the Municipal Finance Bureau and all other relevant agencies of the City
and responsible for overseeing the overall implementation of the Project, making decision
on key Project issues and carrying out interagency coordination at the municipal level as
well as coordination with the Provincial Project Leading Group referred to in paragraph 2
above. The Municipal Project Management Office located within the Sichuan Wudu
Water Diversion Management Bureau (the Bureau) and responsible for Project
management and implementation at the municipal level as well as reporting on progress
and implementation issues to the Bureau and the Municipal Project Leading Group.
4. In addition, an Expert Group (EG), and a Dam Safety Panel (DSP) have been
established at the municipal level. The EG would provide technical support to the
Municipal PMO. The DSP will assist in ensuring that the project is implemented in
compliance with the Bank’s policy on Safety of Dams (OP 4.37) under terms of reference
acceptable to the Bank. The EG will provide guidance to the county PMOs to carry out
its responsibilities.
5. County Level. A County Project Leading Group in each of the Project Counties
responsible for Project implementation, coordination and decision making at the county
level. A County Project Management Office in each of the Project Counties located
within the respective county level bureau of the Wudu Scheme and responsible for
Project management and implementation at the respective county level as well as
reporting on progress and implementation issues to the respective County Project
Leading Group.
25
6. In addition, an expert group for agro-water inputs and services would be
established at the county level to provide technical guidance to development and
implementation of CDD-based WUA Demonstration Program.
B. Financial Management
7. The FM capacity assessment identified the following principal risks: (a) not all
project financial staff has experience with Bank financed projects; (b) the CDD approach
to be used in some of the activities implemented by WUAs may bring additional risk
during project implementation; and (c) lack of timely and sufficient counterpart funds.
8. Mitigation measures agreed include: (a) an FM training plan to be prepared and
all project financial staff to be trained before and during project implementation; (b) an
FMM will be issued to standardize project FM procedures and provide guidance to
project financial staff; and (c) counterpart funds should be confirmed in the government’s
annual budget. The FM risk pre-mitigation has been assessed as “Substantial” and post-
mitigation has been assessed as “Moderate”. The FMM was finalized prior to loan
negotiations.
9. Budgeting. Each county PMO will be responsible for preparing county annual
investment plan in a standardized format to facilitate the preparation, consolidation and
monitoring of the annual plan in an effective and efficient manner. Each county PMO
will conduct a semi-annual variance analysis. Counterpart funds availability will be
reflected in the budget report.
10. Funds flow. Bank loan proceeds will flow from the Bank into the project
designated account (DA) to be set up at and managed by SPFB. SPFB will be directly
responsible for the management, maintenance and reconciliation of DA activities.
Supporting documents required for Bank disbursements will be prepared and submitted
by the respective county PMOs through MPMO and MFB for verification and
consolidation before sending to SPFB for further disbursement processing.
11. Accounting and financial reporting. The administration, accounting and
reporting of the project will be set up in accordance with Circular No.13: “Accounting
Regulations for World Bank Financed Projects” issued in January 2000 by MOF. The
standard set of project financial statements has been agreed between the Bank and MOF.
12. Each county PMO will manage, monitor and maintain project accounting records
for the county. Original supporting documents will be retained by the originating PMOs.
County PMOs, who are the lowest level for maintaining project accounts, will prepare
their own financial statements, which will then be reviewed and consolidated by MPMO
with SPFB’s assistance, before submission to the Bank for review and comment on a
regular basis. The unaudited semi-annual consolidated project financial statements will
be prepared and furnished to the Bank by MPMO as part of the Progress Report no later
than 45 days following each semester (the due dates will be August 15 and February 15).
26
13. The project will utilize an integrated computerized project software package. The
task team will monitor the accounting process, especially during the initial stage, to
ensure that complete and accurate financial information will be provided in a timely
manner.
14. Internal control. The related accounting policy, procedures and regulations were
issued by MOF and an FMM has been issued to align the financial management and
disbursement requirements among PMOs.
15. Auditing. Sichuan Provincial Audit Office (SAO) has been identified as the
auditor for the project. Annual audit reports will be issued by SAO and will be due to the
Bank within 6 months after the end of each calendar year.
C. Disbursements
16. Three disbursement methods are available for the project: advance,
reimbursement and direct payment. Supporting documents required for Bank
disbursement under different disbursement methods will be documented in the
Disbursement Letter issued by the Bank.
17. One designated account (DA) in US dollar will be opened at commercial banks
acceptable to the Bank and will be managed by SPFB. The ceiling of the DA will be
determined and documented in the Disbursement Letter. The Bank loan would be
disbursed against eligible expenditures (taxes inclusive) as in the following table:
Category IBRD Financing (in US$ Million)
Amount1 of the Loan
Allocated
Percentage of Expenditures
to be financed
A. Works 98.16 -
(a) Xizi Canal- 1st Section & Branch
Canal (11 branch canals ) 97.41 84%
(b) Works for On-farm Works (1 lateral
canal and 3 sub-lateral canals) 0.75 20%
B. Goods/Equipment 0.27 100%
C. Consultancy 0.51 100%
D. Training and Workshop 0.71 100%
E. WUA Establishment Cost 0.10 100%
F. Front-end Fee 0.25 100%
Total 100.00 -
18. Retroactive financing will be applied for this project. The date of eligible
expenditures and the amount for the retroactive financing are specified in the loan
agreement.
19. On-farm Works. The construction of three sub-lateral canals will be executed by
WUAs in line with the procedures outlined in the project legal agreements, under the
technical guidance of County PMOs. County PMOs will make payments for
expenditures incurred on eligible activities as indicated in the project legal agreements.
27
20. WUA Establishment Cost. Withdrawals for WUA establishment cost shall be
made: (a) only after municipal PMO has conducted inspection and issued acceptance
report for each established WUA in accordance with WUA manual; (b) based on actual
expenditures incurred for each WUA, and (c) the limit of payment for each WUA shall be
pre-agreed by the Bank.
D. Procurement
21. The procurement capacity assessment identified the principal risk as procurement
staff in the PPMO not having direct experience with Bank financed projects. Mitigation
measures include: (a) procurement training provided during project preparation, and
further training for procurement staff during project implementation; (b) a procurement
manual (PM) has been included in PIP and issued to standardize project procurement
procedures and provide guidance to project procurement staff; and (c) a procurement
agent with experience in World Bank procurement would be hired by PPMO to assist
with procurement activities. The overall risk for procurement is considered “Moderate”.
22. Procurement will be carried out by the Municipal PMO, except for community
participatory procurement, which would be carried out by the WUAs. Procurement for
the proposed project would be carried out in accordance with the World Bank’s
“Guidelines: Procurement under IBRD Loans and IDA Credits” dated May 2004 revised
in October 2006, and May 2010; and “Guidelines: Selection and Employment of
Consultants by World Bank Borrowers” dated May 2004 revised in October 2006, and
May 2010.
23. Procurement of Works. Works would include Xizi main canal, Jinlong sub-
main canal, branch canals as well as the on-farm works, including one lateral, three sub-
laterals in three demonstration areas located in the three project counties. Procurement
will be carried out using the Bank’s Standard Bidding Documents (SBD) for ICB and
Model Bidding Documents (MBD) for NCB, agreed with the Bank.
24. Procedures for Community Participation in Procurement. Construction of on-
farm works, including laterals, sub-laterals and farm ditches, office equipment and
furniture, agricultural inputs (chemicals, seedlings, young animals), facilities (animal
sheds), small equipment (for production purpose) required under Component 2:
Development of CDD-based On-farm Demonstration Areas, would be procured with
community participation. WUAs would carry out the procurement under the following
procedures, which are elaborated in WUA Manual:
(a) Local Shopping for Procurement of Works. Quotations would be obtained through
the invitation of at least three qualified contractors to submit quotations on the
basis of simplified quotation requests. Quotations should be opened at the same
time and to the extent possible in the presence of community. As a general rule,
the contractor who offers the lowest price and meets the technical requirements
28
should be awarded the contract. The threshold for local shopping for civil works
is below US$100,000 per contract.
(b) Local Shopping for Procurement of Goods. Quotations would be solicited from at
least three qualified suppliers on the basis of simplified documents specifying the
goods to be procured. Quotations should be opened by the WUAs at the same
time. As a general rule, the responsive supplier who offers the lowest price
should be awarded the contract. The threshold for local shopping for goods is
below the equivalent of US$100,000 per contract.
(c) Community Force Account. Communities will mobilize their own labor and
equipment to carry out the works. Works to be constructed under force account
should have a detailed description of the works, a set of technical specifications,
and a supervision team to check quality and quantities. Payment would be made
based on pre-estimated unit costs for works against completed works, as certified
by communities.
25. Procurement of Goods. Goods would include office equipment, water measure
equipment and working vehicle. Procurement will be carried out using Bank SBD for all
ICB and Chinese Model Bidding Documents (MBD) for NCB, agreed with the Bank.
26. Selection of Consultants. Consulting services would include panel of experts,
project monitoring and evaluation, and management information system (MIS).
27. Establishment of Water User Association (WUA). A total of about
US$100,000 of Sub-grant would be provided to communities for establishing WUAs.
Withdrawals for WUA establishment cost shall be made: (a) only after municipal PMO
have both conducted inspection and issued acceptance report for each established WUA
in accordance with WUA manual; (b) based on actual expenditures incurred for each
WUA, and (c) the limit of payment for each WUA shall be pre-agreed by the Bank.
28. Training and Workshops. Detailed programs will be developed by Municipal
PMO and included in project annual work plan for Bank’s review. Expenditures incurred
in accordance with the approved detailed programs will be used as the basis for
reimbursement.
29. Procurement Plan. The Borrower has developed an overall procurement plan
and a procurement plan for retroactive financing for project implementation, which
provides the basis for procurement methods. The Plan has been reviewed and agreed at
appraisal. Contracts for retroactive financing are listed below and in the Procurement
Plan for Retroactive Financing. The procurement plan would be available in the Project’s
database and in the Bank’s external website. The Procurement Plan will be updated in
agreement with the Bank annually or as required to reflect project implementation needs
and improvements in institutional capacity.
30. Frequency of Procurement Supervision. In addition to the prior review to be
carried out by the Bank, the capacity assessment of the Implementing Agency has
recommended one procurement mission every twelve months to carry out procurement
29
supervision and post review of procurement actions. The sampling ratio for procurement
post reviews will be at least 1 in 10 contracts.
31. Prior-Review Thresholds. Prior-review thresholds are indicated in the table
below.
Procurement Thresholds
Note: (a) “--“refers to no threshold; and (b) there are no contracts subject to international competition over
the first 18 months.
32. Retroactive Financing. Tables below list the civil works and consulting contracts
which are subject to retroactive financing.
Ref. No.
Description Procurement
Method
Domestic
Preference
(Yes/No)
Review
by Bank
(Prior / Post)
WYEQ-SG-XZ-01 Xizi Main Canal Section 1 Lot 1 NCB No Prior
WYEQ-SG-XZ-02 Xizi Main Canal Section 1 Lot 2 NCB No Prior
WYEQ-SG-XZ-03 Xizi Main Canal Section 1 Lot 3 NCB No Prior
WYEQ-SG-XZ-04 Xizi Main Canal Section 1 Lot 4 NCB No Prior
Ref. No. Description of Assignment Selection
Method
Review by Bank
(Prior / Post)
WYEQ-ZX-01 Management Information System CQS prior
WYEQ-ZX-02 Project Monitoring and Evaluation
including Baseline Survey CQS Prior
Prior Review
Thresholds
(US$
million)
Procurement/Selection Method Thresholds (US$ million)
ICB NCB Shopping QCBS QBS CQS
Least
Cost SSS
Goods 0.5 ≥1.0 <1.0 <0.1 Works, including
Supply and
Installation
5.0 ≥20 <20 <0.2
Community
Participation
WUA Pilot on-farm
works and goods
None None None
Local
Shopping
<0.1
Consulting Services 0.2 for firm
0.05 for
individuals
SSS: all
-- -- <0.2 -- --
30
Governance and Anti-Corruption
33. The Project shall be carried out in accordance with the provisions of the Bank
Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by
IBRD Loans and IDA Credits and Grants, dated October 15, 2006 and revised in January
2011. Many projects face risks connected with procurement and financial management
due to capacity constraints within the institutions. Some of the problems include
information that is incorrectly entered into the system, delayed financial accounting and
payment to contractors, lack of counterpart funds, misuse of project funds, or other types
of fraud. To provide internal controls (to fight corruption) and reduce risks for this
project, a financial and procurement management system (PROMIS) will be used to
monitor the procurement process and financial transactions, and to cross-check data for
errors and alert authorities in a timely way when errors are detected.
Environmental and Social (including safeguards)
Environment
34. The Project is classified as a “Category A” project. Environment Assessment
(EA) reports were prepared in accordance with national requirements and the Bank’s
OP/BP/GP 4.01. The EA covered not only the Bank-financed project, but also
Government financed activities under the entire Wudu Second-phase Water Diversion
and Xizi Irrigation Scheme, including a due diligence review for the Wudu reservoir
project. The reports include: (a) an EA summary; (b) an EA; and (c) an Environmental
Management Plan (EMP). In addition to the OP4.01, the following environmental
safeguards policies are triggered: Natural Habitats, Safety of Dams, and Pest
Management. Dam safety reports and the Pest Management Plan (PMP) acceptable to the
Bank have been prepared.
35. The EA identified and assessed the Project benefits and impacts to the natural and
social environment, and concluded that the Project will bring significant positive impacts:
provide reliable, equitable and stable water supply to the irrigation areas of 1.053 million
mu (70,235.1hectares); increase agricultural yield; improve the livelihood of the farmers
in the irrigated areas; and promote benign circulation and sustainable development for the
regional economic, social and ecological environment. Negative impacts may arise
during project implementation, including limited negative impacts on soil, air, water,
acoustic environments, and solid wastes, mainly during construction. All Project
investments have been designed to avoid or minimize any adverse impacts to acceptable
levels. Preventive measures during the design, construction and operation phases were
prepared to minimize or even eliminate the negative impacts, and are noted in the EMP.
The main environmental issues of the project are the soil erosion caused by construction
activities and potential pesticides issues (if not well managed) during the operational
phase.
31
36. Mitigation Measures. To enhance the environmental benefits of the project, the
project has integrated the mitigation measures into the project design, construction phase
and operational phase respectively.
37. During the design phase, the EA teams worked closely with project planners/
owners and the feasibility study teams to compare and evaluate alternatives. The EA
identified, evaluated and compared various options for dam sites, and optimal alternatives
were selected based on the avoidance of (or least adverse) social and environmental
impacts, as well as other economic, technical, and financial considerations for least cost
solutions. A “no project” scenario was also considered as an alternative. In addition, in-
depth alternative analysis was conducted for canal routes, access roads, and other
construction arrangements. As the result, the routes of the canals, access roads and other
construction arrangements were optimized by significantly shortening the length,
reducing the areas to be excavated and spoils to be disposed, reducing land acquisition,
decreasing the number of resettlement people, and with less cost.
38. An EMP was developed as a separate and stand-alone document. It includes
policy bases, applicable environmental standards, environmental management system,
mitigation measures, monitoring plans, institutional arrangements, capacity building, and
estimated costs for the mitigation measures, and monitoring programs during the
construction and operation phases. An EMP summary table, Environmental Monitoring
Plan, including the monitoring for water and soil conservation work, was also prepared
for both the Bank financed project and for Government financed investments outside the
project. Environmental monitoring reports will provide key and timely information,
especially on environmental impacts and mitigation, to the Borrower and to the Bank, to
evaluate the success of environmental management. Generic measures for environmental
management of construction were also designed as technical specifications to be included
in contracts. To compensate the loss of fishery resource of Fujiang River due to the
construction of the associated Wudu dam, appropriate mitigation measures were also
incorporated into the EMP, including ecological flow, monitoring of native fish species,
and implementation of fishery development plan during the operation phase of the Wudu
dam.
39. Public Consultation and Information Disclosure. A two-stage public
consultation, including expert consultations, questionnaires, symposia, and interviews,
was conducted with the different stakeholders. The majority of those consulted expressed
strong support for the project, and accepted short-term inconveniences, such as noise and
dust during the construction phase. Information about the project was disclosed in
January 2010 and September 2010. The availability of the EA reports, and how to access
to them, was announced in “Mianyang Daily” on December 2, 2010. The EA, EMP, EA
Summary, Dam Safety Report, and PMP were disclosed at the website of different
government agencies. All Environmental safeguard documents mentioned above were
disclosed at the Bank Beijing office website and at the Infoshop in Washington, D. C. on
December 16, 2010.
32
40. Pest Management (OP4.09). The project will improve on-going integrated pest
management in Mianyang Municipality. Specifically, it will: (a) disseminate the
application of high efficiency, low toxic, low residual effect chemicals and biological
pesticides; (b) prohibit the use of high toxic, high residual effect pesticides; (c) reduce
reliance on chemical pesticides and chemical fertilizers; and (d) promote the use of non-
chemical technologies for insect and pest control. A Pest Management Plan (PMP) was
prepared for the project.
41. The PMP covers preface, major pest issues, present pesticides management
methods, pesticides management organizations and their respective responsibilities in
Mianyang Municipality, environmental, occupational and safety risk assessment,
monitoring, evaluation activities, and capacity building etc.
42. Appropriate grievance handling procedures and arrangements for monitoring
EMP, Dam safety, and PMP implementation are in place. With the mitigation measures
in design, construction and operation phase including grievance handling mechanisms
and M&E arrangements implemented mentioned above, the Bank Safeguards
requirements will be met in full.
Involuntary Resettlement (OP4.12)
43. The Bank Project would entail land acquisition and house demolition in three
counties in Mianyang Municipality, northern Sichuan Province. 136 villages in 38
townships will be impacted, of which 4,245 mu of land (in which 2,138 mu are farmland)
would be permanently requisitioned and 3,257 mu of land will be temporarily occupied.
A total of 3848 farmers in 1,063 households would be affected by the land acquisition, of
which 990 people in 264 households have to relocate due to house demolition.
44. The Bank supported project of canal construction is a small part of the Wudu
Water Diversion Project Phase II. The overall Wudu Phase II includes construction of
Jinfeng reservoir (capacity of 98 million m3.), Xizi main canal (108 km long) and 17
branch canals that are mostly domestically financed. Beside the Bank supported part, the
Wudu Phase II domestic part would requisition 10,037 mu (669 ha.) of land and remove
185,309 m2 of structures that would relocate 3,523 people. As affected by land loss, a
total of 4,716 people have to be resettled in new production arrangement entirely. In
2008, a census, socio-economic surveys, and impact investigations were carried out, In
2010, a Resettlement Plan (RP) for the overall Wudu Phase II resettlement was approved
by Sichuan Provincial Resettlement Bureau and Ministry of Water Resources.
Resettlement for the Wudu reservoir commenced in 2001 and was completed in 2010.
According to the relevant national policy and the Resettlement Plan for this reservoir
construction, the reservoir resettlement post-support subsidies were already allocated to
each of the affected persons (RMB600/person) annually, in addition to other
compensation provided before their physical relocation.
45. The RAP for the proposed Bank financed project was prepared after further
rounds of sample surveys and consultations among the villages and households to be
33
affected. It includes a detailed impact inventory and socio-economic analysis, sets forth a
series of measures to mitigate and compensate the impacts as well as to rehabilitate
people’s livelihoods. RAP implementation is budgeted at RMB236.84 million. It
includes a special grievance redressing mechanism and a resettlement M&E system,
which have been established. The RAP is in conformity with OP4.12. The RAP was
disclosed at the county PMOs and the county libraries, as well as in the Bank InfoShop
before the project appraisal.
46. The RAP for the Bank project contains a section for the domestic part in the
Wudu Phase II resettlement, and includes all necessary mitigation and compensation
elements in compliance with the national laws and regulations, as well as Bank
requirements. This section evaluates the Wudu Phase II RP as having the same level of
detail as the Bank-supported project RAP, in terms of impact surveys, compensation
measures and rehabilitation approaches, based on a broad consultation with the project
affected people. This section also include a due diligence report of the Wudu Reservoir
resettlement which was completed in the end of 2010, because the Wudu Reservoir is
viewed as a linked project.
47. Internal and external monitoring and evaluation mechanisms have been
established. During implementation, progress status, outstanding issues and proposed
actions in relation to the project RAP would all be closely overseen and included in the
semi-annual monitoring reports.
48. Safety of Dams (OP4.37). The Project triggers Dam Safety Safeguard Policy
(OP 4.37) because the project sites are located downstream of: the existing Heping dam ;
the Wudu dam, which is under construction; and the Jinfeng dam, which is to be
constructed. Failure of these upstream dams could cause extensive damage to or failure
of some or all the investment under the Project; furthermore, reservoirs formed by the
dams Wudu and Jinfeng would provide water to the water users in the project area. See
Table 4 at the end of this annex for details on these dams.
49. The PMO has established a Dam Safety Panel (DSP) consisting of three
independent dam safety experts. The DSP would assist the PMO and the Bank to ensure
that the project is being implemented in compliance with the Bank's policy on safety of
dams. The DSP will: (a) inspect and evaluate the safety status of the existing Heping
dam, its appurtenance, and performance history, and review and evaluate the dam
operation and maintenance procedures; (b) provide written reports of findings and
recommendations for any remedial work or safety-related measures necessary to upgrade
the Heping dam to an acceptable standard of safety; and (c) review and evaluate the
design or ongoing construction of the Jinfeng and Wudu dams, and continue to review
and evaluate the safety status of the dams after they are completed.
50. The government, as the owner of these dams, has: (a) strengthened the existing
Heping dam with the remedial works by the end of 2010; (b) prepared Operation,
Maintenance and Surveillance Plan (OMS) and Emergency Preparedness Plan (EPP) for
the Wudu dam: and (c) prepared draft OMS and EPP outlines for the Jinfeng dam. All
34
three dams were (or will be) fully financed by the government. The operators of these
dams are (or will be) state-owned institutions or bureaus.
51. The guidelines and regulations on dam safety management issued by the
government include: (a) dam safety management regulations; (b) regulations on dam
safety review; (c) guidelines on dam safety review; (d) guidelines for emergency
preparedness plan; and (e) guidelines for operation, maintenance and surveillance of
dams. During project implementation, the Bank will, together with the Dam Safety Panel
employed by the PMO, supervise the implementation of the dam design and construction;
and review the safety status, and operation and maintenance of these dams to ensure that
the Project complies with Bank OP 4.37, Safety of Dams.
Monitoring & Evaluation
52. The Municipal PMO, through its entrusted external institute, will be responsible
for designing and putting in place a suitable M&E system, satisfactory to the Bank, with
a focus on measuring project outcomes and impact. An independent institute will be
contracted to prepare the general design of the M&E system supported by the Municipal
PMO, and carry out project-wide data collection and processing according to the design
supported by the county PMOs during project implementation. The institute will also
consolidate data collected and prepare periodic M&E reports as required. The M&E
design and work program are included in the Project Implementation Plan (PIP). The
complete set of PDO level result indicators (5) and intermediate result indicators (10) are
included in Annex 1.
53. The Municipal PMO will set up a computer-based Procurement and Financial
Management Information System (PROMIS) to monitor the procurement process and
financial transactions, and will alert authorities when errors are detected. The MIS will
provide consolidated data for intermediate result indicators No. 6, 7, 8 and 9.
54. M&E reports will be submitted to the Bank annually. A mid-term review (MTR)
report of the project will be provided to the Bank before December 31, 2015, and an
implementation completion report (ICR) with 6 month after project completion in
December 31, 2017.
35
List of Dams Triggering the Bank’s Safeguard Policy on Safety of Dams (OP4.37)
Serial
No.
Name
of Dam
Loca-
tion
Year of
Completion
Maximum
Height of
Dam
(m)
Types of Dams
Capacity
of
Reservoir
(million
m3)
Latest
Safety
Review
Dam
Safety
Class
Remedial
works
Next Step
Activities
Dam
Operator
Dam
Owner
1 Wudu Mian-
yang 2011 119.14 RCC 572 NA NA
New dam
under
construction
Construction
and acceptance
Wudu
Reservoir
Management
Division
Mianyang
Wudu Water
and Hydro-
power Group
Company Ltd.
2 Heping Zitong
County 1971 15
Homogeneous
earth 4.18 2008 III
Completed at
the end of
2010
Official
acceptance of
the remedial
works
Heping
Reservoir
Management
Station
Zitong County
Water
Resources
Bureau
3 Jinfeng Mian-
yang New dam 88
Asphalt
concrete core
rock-fill dam
98 NA NA NA
Prepare
Preliminary
Design Report
TBD
Mianyang
Wudu Water
and Hydro-
power Group
Company Ltd.
36
37
Annex 4. Operational Risk Assessment Framework (ORAF) SICHUAN WUDU IRRIGATED AGRICULTURE DEVELOPMENT PROJECT
Project Development Objective(s)
The Project Development Objectives (PDOs) are: The Project Development Objectives (PDOs) are to: (a) increase the coverage of irrigation services in the
Project Area in order to increase agricultural production; (b) provide water supply, in bulk, to small rural communities and industries in the project area;
and (c) introduce a community-based participatory approach in the management of water facilities and infrastructure and increase of production capacity of
higher-value agro-products in the Project Area to ensure the sustainable development of agriculture.
PDO Level Results Indicators:
1. Expanded new irrigated areas;
2. Increased annual agricultural production or value; 3. Increased annual amount of water supply for drinking and industrial purposes; 4. Number of farmers (and female farmers) benefiting from the supplementary irrigation; and 5. Number of O&M plans prepared and implemented for both main irrigation systems and on-farm works.
Risk Category Risk Rating Risk Description Proposed Mitigation Measures
Project Stakeholder Risks
Low Impact / Low Likelihood
All stakeholders have a strong interest in the development of irrigated agriculture in the project area.
Implementing Agency Risks
High Likelihood/Low Impact
PMO lacks experience and knowledge of Bank requirements on procurement and financial management and safeguards policies.
Taining on Bank procedures and safeguards will be provided to the PMO staff at both city and county levels during project implementation.
Project Risks
Design
High Likelihood/Low Impact
The technical design has been prepared by a competent provincial design institute, and the design is straightforward.
Plans for the construction of the on-farm system have been agreed, as also the technical alternatives to be considered to enable timely
38
Risk Category Risk Rating Risk Description Proposed Mitigation Measures
The project includes CDD based WUA activities, which are relatively new to the project counties.
design, construction and financing.
Experienced CDD-based WUA experts provided intensive training, and will provide guidance during the project implementation and O&M stages.
Social and Environmental
Low
Likelihood/High Impact
Weak capacity of the PMOs to implement the agreed safeguards policy instruments (EIA/EMP, PMP, RAP, OMS, EPP, etc).
The Bank team will provide capacity building support by way of training for PMO staff in charge of environment, social/resettlement, and dam safety at municipal and county levels. The Bank team will monitor safeguards implementation regularly, including the measures on dam safety.
Program and Donor N/A N/A N/A
Delivery Quality
Low Likelihood/High Impact
Significant additional funding requirements for construction of on-farm works. Funding requirements for the O&M of the main system. Construction of complex facilities, with proper synchronization of construction activities Budget requirements for the O&M of the on-farm systems.
.
The prioritization of funding support for the
construction of on-farm system that corresponds to
the construction of the main, sub-main and branch
canal system has been agreed. Fundingarrangements
for O&M of the main system have been confirmed. MIS will be designed and set up to closely monitor contract management and operational zing of M&E system. A comprehensive
construction programming plan is in place. PMO
staff will be provided necessary training on
construction management, including on the use of
the computer software for construction management.
WUAs will implement the cost recovery system for on-farm O&M.
39
Overall Risk Rating at
Preparation Overall Risk Rating During
Implementation Comments
Medium - Likelihood
Medium - Impact
The main risk is the capacity constraint of project entities, lack of financing, and coordination of construction of the on-farm irrigation systems to ensure that water can be delivered to the fields once the main irrigation systems are completed. These risks will be mitigated through institutional capacity building, careful project design, and implementation support from the Bank.
Note: Medium – Likelihood – High Likelihood/Low Impact Medium – Impact – Low Likelihood/High Impact
40
Annex 5. Implementation Support Plan SICHUAN WUDU IRRIGATED AGRICULTURE DEVELOPMENT PROJECT
Implementation Strategy (IS)
1. The strategy for implementation support is based on the ORAF, where the risks
identified to achieving the project development objectives and the agreed mitigation
measures have been summarized. The strategy will be reviewed based on the periodic
assessments of the risks and the appropriateness of the mitigation measures.
2. Capacity constraints in implementing agencies. Bank implementation support
will focus on the implementation of the measures to strengthen the capacity of Sichuan
Province, Mianyang City, and the three county governments to implement the project in
accordance with Bank requirements on procurement, financial management, and
environmental and social safeguards. Specifically, the Bank team will confirm that
agreed specialist staffing (especially financial management staff) are in place, and review
on a regular basis adherence to the project procurement manual, the project financial
management manual, the EMP and the RAPs. It will also confirm that the agreed
intensive training program on project management, financial management, procurement,
and safeguards is provided to project staff, and will offer such programs on a
supplemental basis when required.
3. Delivery quality risks. The Bank team will carefully monitor the provision of
additional financing support for the construction of the on-farm system, in close
correspondence with the construction of the main, sub-main, and branch canal system. It
will review the implementation of the comprehensive construction programming plan, as
well as construction management practices. It will periodically assess the adequacy of
the cost recovery system for on-farm O&M being implemented by the WUAs, as well as
the quality of O&M of both the main system and the on-farm works. .
Implementation Support Plan (ISP)
4. In order to provide effective implementation support, the Bank team supporting
the project will be almost entirely based in Beijing. It will be supplemented by
Washington based experts when necessary, as well as national and international
consultants. The task team will conduct, on average, two full review missions each fiscal
year. In addition, specialists will make shorter visits to project sites as and when
necessary. Table below indicates expected focus of implementation support during the
different phases of the project and the skills needed.
41
Main focus in terms of support to implementation
Time Focus Skills
Needed Resource Estimate
Partner
Role First twelve months
FM and disbursement
training and FM
supervision
Procurement Training
and Workshops
Safeguards Training
Project Concept and
Approach Training
FM and DS Procumbent Safeguards Agro-water Management
FM specialist
0.5 SW
Disbursement
Officer 1 SW
Procurement
Specialist 1 SW
Safeguards Specialist
2 SW
3 SW
12-60 months Financial management
&disbursement and
procurement review and
support
PROMIS application to
monitor the
procurement and
financial and
disbursement process
EMP and PMP
implementation
FM and DS Procurement Safeguards
FM specialist
1 SW annually
Disbursement
Officer 2 SWs
annually
Procurement
specialist 2 SWs
annually
Safeguards specialist
2 SWs annually
42
Annex 6. Team Composition
SICHUAN WUDU IRRIGATED AGRICULTURE DEVELOPMENT PROJECT
World Bank staff and consultants who worked on project preparation:
Name Title Unit
Liping Jiang TTL and Sr. Irrigation Specialist EASCS
Zong-Cheng Lin Sr. Social Development Specialist EASCS
Yiren Feng Sr. Environmental Specialist EASCS
Ximing Zhang Sr. Dam Safety Specialist EASCS
Jinan Shi Sr. Procurement Specialist EASCS
Yuan Wang Procurement Specialist ESSCS
Yi Dong Sr. Financial Management Specialist EAPFM
Jun Zhao Rural Development Specialist EASCS
Zhuo Yu Disbursement Officer CTRLN
Xin Chen Sr. Program Assistant EACCF
Xuemei Guo Program Assistant EACCF
Dan Xie Team Assistant EACCF
Vel Fernandes Program Assistant EASIN
Junxue Chu Sr. Finance Officer CTRFC
Kishor Uprety Sr. Counsel LEGES
Syed I. Ahmed Lead Counsel LEGES
Xueming Liu Sr. Economist FAO/CP
Usaid L. Hanbali Sr. Irrigation Engineer Consultant
Li Ou Sr. CDD/WUA Specialist Consultant
Zhang Kaiping Sr. Agricultural Specialist Consultant
Li Zhi Construction Programmer Consultant
Abdulhamid Azad Peer Reviewer MNSWA
Paulus Van Hofwegen Peer Reviewer EASIS
IJsbrand Harko de Jong Peer Reviewer EASS1
Joop Stoutjesdijk Peer Reviewer SASDA
