Embed Size (px)
Citation preview
Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: 67626-CN
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED LOAN
IN THE AMOUNT OF US$80.0 MILLION
TO THE
PEOPLE‘S REPUBLIC OF CHINA
FOR THE
NINGXIA DESERTIFICATION CONTROL AND ECOLOGICAL PROTECTION PROJECT
April 12, 2012
China & Mongolia Sustainable Development
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.
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
CURRENCY EQUIVALENTS
(Exchange Rate Effective December 31, 2011)
Currency Unit = RMB (Yuan)
RMB 6.3 = US$1
US$ 0.158 = RMB 1
FISCAL YEAR
July 1 – June 30
ABBREVIATIONS AND ACRONYMS
CNAO China National Audit Office
CPS Country Partnership Strategy
CQ Consultant Qualifications
DA Designated Account
EMP Environmental Management Plan
FMM Financial Management Manual
IBRD International Bank for Reconstruction and Development
ICB International Competitive Bidding
IFR Interim Financial Report
NCB National Competitive Bidding
NRDRC Ningxia Hui Autonomous Region Development and Reform Commission
NFB Ningxia Hui Autonomous Region Forestry Bureau
NFD Ningxia Hui Autonomous Region Finance Department
NXAO Ningxia Hui Autonomous Region‘s Audit Office
PAD Project Appraisal Document
PDO Project Development Objective
PM Procurement Manual
QBS Quality-Based Selection
QCBS Quality-and-Cost-Based Selection
RPMO Regional Project Management Office
SBD Standard Bidding Document
SIL Specific Investment Loan
Vice President: Pamela Cox, EAPVP
Country Director: Klaus Rohland, EACCF
Sector Director:
Sector Manager:
John A. Roome, EASSD
Paul Kriss, EASCS
Task Team Leader: Ulrich Schmitt, EASCS
China
Ningxia Desertification Control and Ecological Protection Project
Table of Contents I. STRATEGIC CONTEXT ....................................................................................................... 1
A. Country Context ............................................................................................................... 1
B. Sectoral and Institutional Context .................................................................................... 2
C. Higher Level Objectives to which the Project Contributes .............................................. 3
II. PROJECT DEVELOPMENT OBJECTIVES ......................................................................... 3
A. PDO .................................................................................................................................. 3
Project Beneficiaries ................................................................................................................ 4
PDO Level Results Indicators ................................................................................................. 4
III. PROJECT DESCRIPTION .................................................................................................. 4
A. Project Components ......................................................................................................... 4
B. Project Financing.............................................................................................................. 5
Lending Instrument ................................................................................................................. 5
Project Cost and Financing ...................................................................................................... 5
C. Lessons Learned and Reflected in the Project Design ..................................................... 6
IV. IMPLEMENTATION .......................................................................................................... 7
A. Institutional and Implementation Arrangements .............................................................. 7
B. Results Monitoring and Evaluation .................................................................................. 7
C. Sustainability .................................................................................................................... 8
V. KEY RISKS AND MITIGATION MEASURES ................................................................... 8
VI. APPRAISAL SUMMARY .................................................................................................. 9
Annex 1: Results Framework and Monitoring.............................................................................. 14
Annex 2: Detailed Project Description ........................................................................................ 16
Annex 3: Implementation Arrangements ..................................................................................... 21
Annex 4 Operational Risk Assessment Framework (ORAF) ...................................................... 32
Annex 5: Implementation Support Plan ........................................................................................ 34
MAP IBRD 39020 ........................................................................................................................ 36
.
PAD DATA SHEET
China
Ningxia Desertification Control and Ecological Protection Project (P121289)
PROJECT APPRAISAL DOCUMENT .
EAST ASIA AND PACIFIC
EASCS
.
Basic Information
Date: 12-Apr-2012 Sectors: General agriculture, fishing and forestry sector
(90%), Irrigation and drainage (10%)
Country Director: Klaus Rohland Themes: Other environment and natural resources
management (80%), Rural services and
infrastructure (10%), Water resource
management (10%)
Sector
Manager/Director: Paul Kriss/John A.
Roome
Project ID: P121289 EA
Category: B - Partial Assessment
Lending
Instrument: Specific Investment
Loan
Team Leader(s): Ulrich K. H. M.
Schmitt
Joint IFC: No .
Borrower: International Department, Ministry of Finance
Responsible Agency: Ningxia Hui Autonomous Region Forestry Bureau
Contact: Mr. He Quanfa Title: Project Management Office Director
Telephone No.: Email: [email protected] .
Project Implementation Period: Start Date: 17-May-2012 End Date: 30-Sep-2017
Expected Effectiveness Date: 01-Oct-2012
Expected Closing Date: 31-Mar-2018 .
Project Financing Data(US$M)
[ X ] Loan [ ] Grant [ ] Other
[ ] Credit [ ] Guarantee
For Loans/Credits/Others
Total Project Cost (US$M): 113.75
Total Bank Financing (US$M): 80.00
.
Financing Source Amount(US$M)
Borrower 33.75
International Bank for Reconstruction and
Development 80.00
Total 113.75 .
Expected Disbursements (in USD Million)
Fiscal Year 2013 2014 2015 2016 2017 2018 2019
Annual 10.00 15.00 15.00 20.00 15.00 4.00 1.00
Cumulative 10.00 25.00 40.00 60.00 75.00 79.00 80.00 .
Project Development Objective(s)
The Project Development Objective is to control desertification and degradation and protect key
farmland and infrastructure in strategically selected locations in Ningxia Hui Autonomous Region. .
Components
Component Name Cost (USD Millions)
Component 1: Controlling Desertification and Degradation 89.38
Component 2: Protective Shelterbelt Plantations 17.37
Component 3: Project Management, Capacity Building and M&E 6.80 .
Compliance
Policy
Does the project depart from the CAS in content or in other significant
respects? Yes [ ] No [ X ]
.
Does the project require any waivers of Bank policies? Yes [ ] No [ X ]
Have these been approved by Bank management? Yes [ ] No [ X ]
Is approval for any policy waiver sought from the Board? Yes [ ] No [ X ]
Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ] .
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment OP/BP 4.01 X
Natural Habitats OP/BP 4.04 X
Forests OP/BP 4.36 X
Pest Management OP 4.09 X
Physical Cultural Resources OP/BP 4.11 X
Indigenous Peoples OP/BP 4.10 X
Involuntary Resettlement OP/BP 4.12 X
Safety of Dams OP/BP 4.37 X
Projects on International Waterways OP/BP 7.50 X
Projects in Disputed Areas OP/BP 7.60 X .
Legal Covenants
Name Recurrent Due Date Frequency
Project Implementation Arrangement and
Implementation Units X Yearly
Description of Covenant
Throughout implementation, Ningxia shall maintain a Regional Leading Group, Regional Management Office,
County Project Management Offices, and Expert Working Group acceptable to the Bank.
Name Recurrent Due Date Frequency
Project Implementation Manual X Yearly
Description of Covenant
Ningxia shall apply and cause the Project Counties to apply in the implementation of the Project, the Project
Implementation Manual, in an efficient and timely manner satisfactory to the Bank.
Name Recurrent Due Date Frequency
Safeguard Instruments X Yearly
Description of Covenant
Ningxia shall implement and cause the Project Counties to implement the Process Framework, Environmental
Protection Guidelines, and Pest Management Plan, in a manner satisfactory to the Bank.
Name Recurrent Due Date Frequency
Process Framework X Yearly
Description of Covenant
Ningxia shall carry out measures for improving the living standards of Project Affected Persons in accordance with
the Process Framework, and carry out external monitoring and reporting.
Name Recurrent Due Date Frequency
Cultural Heritage X Yearly
Description of Covenant
Ningxia shall take or cause to be taken all such action as shall be necessary in the implementation of the Project to
protect cultural heritage sites in the area of influence of the Project.
Name Recurrent Due Date Frequency
Annual Implementation Plan X Yearly
Description of Covenant
Ningxia shall furnish to the Bank a final annual implementation plan, including Bank's comments, by December
31, and implement the project according to the annual implementation plan.
Name Recurrent Due Date Frequency
Implementation X Yearly
Description of Covenant
Ningxia shall not amend, suspend, fail to enforce or waive the Process Framework, the EPG, the PMP or any
annual implementation plan.
Name Recurrent Due Date Frequency
Treatment Models and Technical Standards X Yearly
Description of Covenant
Ningxia shall cause the Project Counties to implement and protect plantation and vegetation rehabilitation
according to agreed models and standards and adequate land management arrangements.
Name Recurrent Due Date Frequency
Straw Market Analysis X Yearly
Description of Covenant
Ningxia shall, periodically, carry out a market analysis of the local straw markets in order to monitor price
developments and any market distortions from the extensive procurement of straw.
Name Recurrent Due Date Frequency
Financial Management and Procurement Manuals X Yearly
Description of Covenant
Ningxia shall apply the Financial Management Manual and the Procurement Manual in implementing the Project
for monitoring the entire procurement process and the financial transactions. .
Team Composition
Bank Staff
Name Title Specialization Unit
Marta Molares-Halberg Lead Counsel Lead Counsel LEGES
Syed I. Ahmed Lead Counsel Lead Counsel LEGES
Zong-Cheng Lin Senior Social
Development Specialist Senior Social
Development Specialist EASCS
Jinan Shi Senior Procurement
Specialist Senior Procurement
Specialist EAPPR
Junxue Chu Senior Finance Officer Senior Finance Officer CTRLN
Wenyan Dong Operations Analyst Operations Analyst EASCS
Jin Liu Senior Rural
Development Specialist Senior Rural
Development Specialist EASCS
Chunxiang Zhang Operations Analyst Operations Analyst GFDRR
Haiyan Wang Senior Finance Officer Senior Finance Officer CTRLN
Ulrich K. H. M. Schmitt Sr Natural Resources
Econ. Team Lead EASCS
David I Sr Financial
Management Specialist Sr Financial
Management Specialist EAPFM
Haixia Li Sr Financial
Management Specialist Sr Financial
Management Specialist EAPFM
Yiren Feng Senior Environmental
Specialist Senior Environmental
Specialist EASCS
Yunqing Tian Program Assistant Program Assistant EACCF
Zijing Niu Program Assistant Program Assistant EACCF
Yuan Wang Procurement Specialist Procurement Specialist EAPPR
Guzman Garcia-Rivero Consultant Consultant Advisor EASIS
Non Bank Staff
Name Title Office Phone City
Josef Ernstberger Senior Agriculture
Economist
.
Locations
Country First
Administrative
Division
Location Planned Actual Comments
China Ningxia Hui
Autonomous
Region
Ningxia Hui
Autonomous
Region
x The project will be
implemented in 7
cities/districts/counties
within the territory of
the Ningxia Hui
Autonomous Region. .
1
I. STRATEGIC CONTEXT
A. Country Context
1. Desertification in the arid and semi-arid areas of Northwest China is among the many
environmental issues that China is facing today. Desertification is caused by the complex
interaction of environmental and anthropogenic factors over long periods of time.
Environmental factors include a naturally dry climate, recurrent periods of prolonged draughts,
and specific topographic and geographic conditions. Among the anthropogenic factors, which
are often exacerbating the natural proneness to degradation and desertification, are poor land
management, inadequate farming techniques and over-cultivation, overgrazing and removal of
natural vegetation, misuse of water resources, and poor environmental and ecosystem
management. These latter factors are generally regarded as the main driving forces behind
desertification. About 2.62 million square kilometers (about 27.3 percent of China‘s total land
area) are described as desertification-affected, of which sand encroachment is a threat to 1.73
million square kilometers. About 400 million people are estimated to be affected by
desertification and eco-refugees have appeared in some regions due to desertification.
2. Desertification is not an isolated environmental issue but acts as an impediment to the
Government‘s development efforts in Northwest China. Advancing sand areas, loss of farmland
and dwindling water resources are threatening the gains made over the past decades in rural and
agriculture development and in infrastructure construction and, ultimately, are threatening human
livelihood. Desertification impacts are not confined locally. They are felt across all of northern
China, including the main coastal cities, and even regionally in neighboring countries and have
become a global concern.
3. National efforts to address desertification threats started back in 1978 with the initiation
of the Three North Shelterbelt Program. In 2001, the Government integrated the various efforts
into six major ecological programs, including the: Natural Forest Protection Program,
Conversion of Cropland to Forest Program, Key Protective Forest Program in Three North and
Yangtze River, Combating Desertification Program in Sand Desert Areas Around Beijing and
Tianjin, Wildlife Conservation and Natural Reserve Development Program, and Forestry
Industries Base Development Program in Key Regions. Of these, the Combating Desertification
Program and the Fourth Phase of the Three North Shelterbelt Program cover more than 85
percent of the land area in China that is exposed to desertification dynamics. These programs
represent the main efforts of China‘s program for national combating desertification.
4. Implementation of these programs has yielded encouraging results in terms of at least
halting the aggregate expansion of desertification and degradation and, in some locations, even
resulted in a slight reversal, as documented in the latest National Survey on Desertification and
Land Degradation carried out in 20091. Despite these positive signs, the country‘s arid and semi-
arid areas remain in a highly fragile balance that is threatened by continuing pressure from
population growth and economic development, with the expected climate change being an
additional risk factor that could trigger and accelerate desertification forces.
1 According to the 4
th National Monitoring Survey (2009), desertification areas in China decreased by 12,454 square
kilometers or by 0.47% during the period from 2004 to 2009.
2
B. Sectoral and Institutional Context
5. The Government has paid much attention to combat desertification. The country is a
signatory of the United Nations Convention to Combat Desertification (UNCCD) since 1994.
China coordinates desertification control and monitoring following international standards and
agreements. In 1996, China developed (and revised in 2003) a National Action Plan to Combat
Desertification, which includes improved legislation and institution building, as well as a range
of programs to prevent land degradation and desertification. Over the past 20 years, a
comprehensive legal and institutional framework has been put in place, which includes a number
of important laws directly relevant to combat desertification: the Integrated Law on Combating
Desertification (2002), the Forest Law (1998), the Land Management Law (1986, revised in
2004), the Soil and Water Conservation Law (1991), the Water Law (2002), and the Grassland
Law (2002).
6. A National Coordinating and Leading Group on Combat Desertification, set up by the
State Council in 1991, provides overall guidance and coordination on national desertification
control efforts. The State Forestry Administration with its National Bureau to Combat
Desertification, the National Research and Development Center on Combating Desertification at
the Chinese Academy of Forestry, the National Training Center on Combating Desertification at
the Beijing Forestry University, and the China National Desertification Monitoring Center are
among the major national level institutions involved in desertification control programs.
7. In 2008, the State Council issued the circular ―Comments of the State Council on Further
Promoting Economic and Social Development of Ningxia Hui Autonomous Region‖ and selected
Ningxia to become a national demonstration area for desertification control and environmental
rehabilitation in Northwestern China. Ningxia‘s desertification area is about 2.97 million
hectares covering about 57 percent of the total territory of the Region. More than 3 million
people in 13 counties are estimated to be impacted by desertification, sandstorms and land
degradation. With Ningxia also being one of the poorest regions in China, the purpose of
demonstration goes beyond environmental protection and rehabilitation but also includes aspects
of regional economic development, reducing poverty and protecting and improving agriculture,
food production, and local livelihoods. With expanding investments into economic development
in the Yellow River plains, the main development area of Ningxia, desertification control has
become a matter of critical importance.
8. Over the past decade, Ningxia has gained substantial technical expertise and practical
experiences in desertification control. The Region has implemented numerous related
international cooperation projects (with an estimated total investment volume of CNY300
million) that have promoted the establishment of shelterbelts, the reclamation of sandy soils
through irrigation and cultivation, the establishment of vegetation cover in sand dune areas, hill
side and mountain closures, and albeit limited in scale, even the manual excavation of sand-
buried farming soils. These technical approaches to combat desertification have been the
outcome of decade-long intensive local research efforts and have been well tested in the field
through numerous pilots and through project implementation.
9. Investment efforts in desertification control and environmental protection are
nevertheless deemed to have been insufficient. One the one hand, weak local fiscal capacity and
3
funding gaps have prevented the scaling up of desertification control interventions in a strategic
manner. On the other, the need to fulfill top-down planning targets may have diverted attention
away from the environmentally and ecologically most appropriate measures for desertification
control and have often led to less than optimal implementation outcomes. A typical example is
the focus on tree planting, often accompanied by costly investments in permanent supplemental
irrigation, in places that are not suitable for tree growth in the long-term because of lack of
natural precipitation. These over-investments have often come at the expense of neglecting the
more suitable restoration and management of natural grassland or shrub vegetation. Survival
rates of such tree plantations have often been low and tree cover has only been maintained
through increased water consumption, and the implementation of effective management and
maintenance models has lagged behind. As a result, desertification has advanced in many areas
and is threatening critical infrastructure, settlements and farmland in the Yellow River corridor.
10. The Government of Ningxia is providing strong leadership to control desertification
throughout the province, and has integrated control measures firmly into the local economic and
social development strategy. In 2003, Ningxia also introduced a grazing ban to support
vegetation rehabilitation on state and collective lands. A Provincial Leading Group, chaired by
the Governor of Ningxia, and with representation from the departments of Finance, Development
and Reform, Water Resources, Transport, Environmental Protection, Forestry and other line
agencies is coordinating all foreign-funded projects, including the proposed World Bank project,
with the aim of directing these investments strategically across the Region. Areas for
desertification control and rehabilitation are being prioritized along key farmland areas,
waterways and urban and industrial centers and include primarily state-owned land, i.e. state
forest farms, and collectively-owned lands.
C. Higher Level Objectives to which the Project Contributes
11. The World Bank‘s Country Partnership Strategy (CPS) for China for 2006-20102, under
its third pillar, is supporting China toward better ―managing resource scarcity and environmental
challenges‖ with a focus on improving the management of natural resources such as land,
grasslands, forests and water resources. The CPS also promotes the piloting of improved
approaches to natural resource management, by involving communities and promoting socially-
responsible private investment, to contain resource degradation and the resulting negative
externalities. The project is fully in line with the objectives and directions of the CPS.
12. The project would contribute to the objectives and targets of China‘s 12th
Five-Year Plan
(2011-2015) with its focus on environmental sustainability, development of the Western
Regions, sustainable growth, and improving the quality of life.
II. PROJECT DEVELOPMENT OBJECTIVES
A. PDO
13. The PDO is to control desertification and degradation and protect key farmland and
infrastructure in strategically selected locations in Ningxia Hui Autonomous Region.
2A new Country Partnership Strategy 2011-2015 is currently under preparation but has not yet been finalized.
4
Project Beneficiaries
14. The project will support desertification control, vegetation rehabilitation and ecological
protection measures in seven cities/districts/counties of Ningxia Hui Autonomous Region,
including: Pingluo County, Lingwu City, Litong District, Qingtongxia City, Xingqing District,
Yanchi County, and Zhongwei City. The project is expected to generate local environmental
benefits for the entire population within the participating cities/districts/counties estimated at
around three million people, as well as to protect a number of key infrastructure facilities on the
eastern bank of the Yellow River, which are of strategic importance for the economic
development of the Region. Since the project areas are located in a wind corridor affecting
major parts of Northern China and have been identified as one of the major sources of
sandstorms, the project would benefit indirectly a much larger number of people living as far as
Beijing or Tianjin.
PDO Level Results Indicators
15. Achievement of the PDO will be measured by: (a) the extent of the areas treated under
the project where desertification is controlled in a manner that prevents further desertification
and degradation; and (b) the economic value of infrastructure and farmland protected under the
project. Desertification is considered controlled when vegetation cover exceeds the pre-defined
threshold of a minimum ground coverage of 30 percent on moving sand dunes, and when a
ground vegetation cover of above 40 percent has been permanently established on degraded arid
and semi-arid land.
III. PROJECT DESCRIPTION
A. Project Components
16. The project will be implemented over a period of five years. Desertification control and
ecological restoration activities will cover an approximate total area of 72,000 hectares in
Ningxia. The project will include three components, as described below:
17. Component 1: Controlling Desertification and Degradation (Total Cost: US$89.38
million). The component will address the main drivers of desertification and degradation which
relate to moving sand through wind erosion dynamics and unsustainable land use practices. It
comprises three sub-components:
(a) Moving Sand Stabilization (Total Cost: US$68.50 million), carrying out a program to
halt the movement of shifting sand dunes and prevent encroachment of shifting sand onto
agricultural land, settlements and infrastructure through, inter alia, the establishment of
straw checker boards combined with the seeding and planting of indigenous shrub and
grass on about 19,000 hectares of moving and semi-moving sand dune areas in Ningxia,
and implementing fire control measures, including the construction of fire breaking tracks
and passage routes, watch towers, and small buildings for technical staff and workers,
information boards and warning signs.
5
(b) Degradation Control and Re-vegetation (Total Cost: US$15.44 million), carrying out a
program to control and reverse degradation of arid and semi-arid shrubland and steppe
areas through, inter alia, closing, protecting and managing for natural re-vegetation about
42,000 hectares of degraded arid and semi-arid areas, shrub planting and assisted
vegetation restoration in an additional 4,600 hectares, including construction of access
tracks serving as fire breaks, watch towers and other infrastructure required to manage
and monitor the rehabilitated areas.
(c) Integrated Land Management (Total Cost: US$5.44 million), carrying out a program to
mitigate any potential negative impacts on land users from desertification control and
vegetation rehabilitation measures resulting from the implementation of component 1 (a)
and (b) of the project, including implementing the Process Framework, carrying out
economic tree plantations and fodder production for livestock to compensate for access
restrictions to grazing areas, and developing long-term land management arrangements
for selected sites.
18. Component 2: Protective Shelterbelt Plantations (Total Cost: US$17.37 million).
This component includes carrying out a program to protect key farmland and infrastructure from
desertification and sand encroachment through, inter alia, the establishment of multi-layer and
multi-storey tree and shrub shelterbelts in about 5,500 hectares along roads, irrigation canals and
around agricultural fields and fruit orchards in selected locations, including installing
supplemental irrigation systems to ensure the successful establishment of shelterbelt plantings.
19. Component 3: Project Management, Capacity Building and M&E (Total Cost:
US$6.80 million). This component includes the provision of technical assistance support for
carrying out: (a) information and awareness campaigns for project beneficiaries and
stakeholders; (b) the detailed technical design, field implementation and construction,
construction supervision, and final acceptance checks of desertification control works,
safeguards supervision, and Project progress reporting; (c) applied research; (d) training on the
establishment, maintenance and post-management of desertification control and plantation
investments for long-term sustainability; and (e) desertification control impact monitoring and
field demonstration that is integrated into the national and regional desertification monitoring
systems.
B. Project Financing
Lending Instrument
20. The selected lending instrument is a Specific Investment Loan (SIL), denominated in
US$, with a variable spread interest rate , a five year grace period, and a total repayment term of
30 years.
Project Cost and Financing
21. Project costs by component and sub-component, and the share of IBRD financing are
summarized in Table 1, as follows:
6
Table 1: Project Cost
Project components and Subcomponents
Total Cost
(including
Contingencies)
IBRD Loan
(US$
million) %
US$
million
Financing
%
A. Controlling Desertification and Degradation
Moving Sand Stabilization 68.50 60.2 50.69 74.0
Degradation Control and Re-vegetation 15.44 13.6 11.42 74.0
Integrated Land Management 5.44 4.8 4.02 74.0
Subtotal Controlling Desertification and Degradation 89.38 78.6 66.14 74.0
B. Protective Shelterbelt Plantations 17.37 15.3 12.86 74.0
C. Project Management, Capacity Building and M&E
Design, Construction Supervision & Management 3.95 3.5 - -
Applied Research 0.21 0.2 - -
Training and Extension 1.84 1.6 - -
Project Monitoring and Evaluation 0.80 0.7 0.80 100
Subtotal Management, Capacity Building, M&E 6.80 6.0 0.80 11.8
Total PROJECT COSTS 113.55 99.8 79.80 70.3
Front-end Fee 0.20 0.2 0.20 100.0
Total Costs to be Financed 113.75 100.0 80.00 70.3
22. Retroactive Financing. Retroactive financing will be allowed under the project for
eligible expenditures under all project components. Withdrawals for eligible expenditures up to
an aggregate amount not to exceed US$8 million may be made for payments within 12 months
prior to the date of Loan Signing, but on or after February 1, 2012.
C. Lessons Learned and Reflected in the Project Design
23. Project design builds on experiences gained in national programs and on relevant and
transferable experiences from other Bank-financed projects focused on resource management,
ecosystem restoration, and public environmental goods provision in China. Key lessons
incorporated into the design include: (a) the project is embedded into Government programs and
priorities; (b) it works through existing institutions and draws on experience and expertise
developed and available locally; (c) it builds on existing monitoring and evaluation methods and
works through the Government‘s mandated M&E institutions; (d) it builds on simple but locally
proven technologies and limits complex or challenging innovations in an implementation
environment where capacity is relatively weak and there is little experiences with Bank projects
and procedures; and (e) the project promotes local ownership through integrating local
stakeholders and providing tangible benefits through project participation.
7
IV. IMPLEMENTATION
A. Institutional and Implementation Arrangements
24. The Regional Leading Group, chaired by the Governor of Ningxia and with
representation from the departments Finance, the Development and Reform Commission, Water
Resources, Transport, Environmental Protection, Forestry and other relevant agencies will be
provide overall policy guidance to the project and will oversee project implementation and
management of foreign funds, and coordinate to resolve any implementation problems that may
arise. It will establish the necessary regulatory framework for successful project implementation,
carry out project progress and performance reviews, and oversee the assessment of project
impacts and performance of the implementing agencies.
25. A Regional Project Management Office (RPMO) has been established within the Ningxia
International Forestry Cooperation Center of the Ningxia Forestry Bureau. The RPMO will
perform the operational coordination of project activities that will be implemented at the county
levels. It will prepare annual implementation plans, carry out the overall project impact
monitoring and evaluation (M&E) in coordination with the Ningxia Forestry Planning and
Design Institute, guide the implementation of the research and demonstration activities, and will
centralize reporting on physical progress, financial matters, and procurement planning. The
RPMO will also serve as the main liaison for the Bank‘s supervision and implementation support
activities.
26. Each project city/district/county has established a Project Management Office (PMO)
housed in the respective forestry bureaus. The PMOs are responsible for the day-to-day
implementation and management of project activities, technical supervision and acceptance
checks, and input-output and progress monitoring and reporting to the RPMO. The PMOs are
responsible for the preparation of county-level annual implementation plans and procurement
plans for submission to and consolidation by the RPMO. The PMOs are also responsible for
procurement plan implementation and contracting as well as for the financial reporting and
preparation and submission of reimbursement requests to the higher level authorities.
B. Results Monitoring and Evaluation
27. The project‘s monitoring and evaluation system will include: (a) a basic project progress
(input-output) monitoring and reporting system based on government procedures and project
requirements; and (b) a longer-term impact monitoring system to assess the desertification
control impacts of the project and the achievement of the PDO through the indicators referenced
in the project‘s Results Framework.
28. Detailed input and output monitoring will be undertaken by the PMOs, which will be
coordinated and verified by the RPMO. Impact monitoring will be integrated into the
Government‘s existing Monitoring and Evaluation (M&E) framework for desertification control.
Monitoring will be based on remote sensing technologies, permanent plots and field verification,
and will apply existing monitoring protocols and indicators.
29. The Ningxia Forestry Planning and Design Institute, which has the mandate and is
responsible for the periodic assessments of the Government‘s desertification control programs,
8
has been assigned the task of project impact monitoring and for integrating project outcomes into
the M&E framework of the Region. The specific responsibilities of the Institute are described in
the Project Implementation Manual along with the technical M&E approach and reporting.
Details of the incremental support to be provided through the project, such as supplementary
satellite imagery for project sites, and incremental operational costs, would be documented in a
Memorandum of Understanding between the Ningxia Finance Department, the RPMO and the
Institute and would be available in draft at negotiations and will be in place at project start-up.
The Regional PMO may also recruit qualified consultants to carry out the M&E work.
C. Sustainability
30. Several parameters assure the sustainability of the project investments and outcomes: (a)
the project is fully integrated into the overall context of regional and national policies, programs
and strategies for desertification control and prevention; (b) the project is implemented through
the established institutions, which have an ongoing mandate for desertification control and land
degradation prevention; and (c) the project follows non-complex technical designs, which have
evolved and have already been successfully tested in the project areas over several decades.
31. In addition, the project is integrated in the regions overall strategy of restructuring the
livestock sector and providing support to livestock owners for changing from grazing to pen
feeding based on produced fodder. In line with this strategy, the Integrated Land Management
Sub-component 1(c) will provide local farmers affected by and involved in project measures
(e.g. by the closing and protecting of areas from animal grazing) with alternative sources of
livelihood, for which the project provides funding. Integrating local stakeholders in
desertification control measures will be an important element for sustainability.
V. KEY RISKS AND MITIGATION MEASURES
A. Risk Ratings Summary Table
Risk Rating
Stakeholder Risk Low
Implementing Agency Risk
- Capacity Substantial
- Governance Low
Project Risk
- Design Low
- Social and Environmental Low
- Program and Donor Low
- Delivery Monitoring and Sustainability Moderate
Overall Implementation Risk Moderate
9
B. Overall Risk Rating Explanation
32. Overall risk rating for the project implementation is moderate. Risks and associated
mitigation measures are presented in the Operational Risk Assessment Framework (Annex 4).
The main risks to the achievement of the PDO are: the lack of capacity of the implementing
agencies at the regional and county levels to implement a Bank project, especially in terms of
adherence to Bank procurement and financial management requirements; and delivery
monitoring in terms of contract management. Risk management measures have been included in
project design, including the adoption of a Project Implementation Manual, and procurement and
financial management training for relevant staff.
VI. APPRAISAL SUMMARY
A. Economic and Financial Analysis
33. The project is integrated in the Government‘s strategy for desertification control and land
degradation prevention in Ningxia in support of economic development and sustainability in the
Region, particularly in the Yellow River Corridor. The project may also generate benefits
through an improved environment that may extend across parts of northern and northwestern
China, including in areas as far away as Beijing or Tianjin. Such benefits have both a time and a
spatial dimension beyond the project duration and project area and thus pose a significant
challenge for quantification. In addition, attributing these benefits to a single project would not
be legitimate. Instead of a standard cost-benefit-analysis, a number of cost effectiveness
considerations have been taken into account to promote a cost effective use of project funds.
34. Site selection. The project site selection process focused on areas with the highest
possible impact. In areas of strategic importance, sand dune stabilization through straw
checkerboards and seeding/planting is proposed. Such sites include the Yindong Chemical
Production Base on the east bank of the Yellow River, important farmland resources, and the
Yellow River itself. Hill closures will cover those areas that are under immediate threat of
further degradation and are unlikely to recover naturally. Multi-layer shelterbelt plantations are
being selected only in areas of importance for high value agricultural production (e.g. grape and
fruit development areas) and along important roads and canals. The site selection has been
carried out in a consultative manner and participation of stakeholders in the project is voluntary.
35. Desertification control models. Technical options and models for the stabilization of
moving sand include sand bags, wind baffle boards, construction of ditches, or binding the
surface with adhesive agents or asphalt emulsion. A cost comparison shows that some of these
techniques may be cheaper on a per hectare basis. Environmental concerns and, in particular,
limited technical effectiveness make these methods unsuitable for application on a large scale.
The project‘s use of a combination of mechanical wind break (such as straw checker boards) and
biological measures (seeding and planting) is considered to be much more cost effective in the
long-run. The choice of material, type and age of seedlings, and planting densities proposed for
the project are the result of pilots and long-term implementation experience in Ningxia.
Technical models designed during project preparation represent an appropriate balance between
technical and cost effectiveness. These will be further fine-tuned during detailed design.
10
36. Competitive contracting. Implementation of plantation works will follow competitive
procurement procedures to select contractors, which are expected to results in significant cost
savings compared to the Government‘s standard implementation procedures. Because of the
increased demand created by the project for local wheat straw (for use in checker boards), a price
effect on the local straw market cannot be excluded. The project includes regular market
analyses to monitor wheat straw price. If needed, the project would respond to price increases by
shifting to the use of alternative raw materials or procure straw from other locations.
37. Local acceptance and sustainability. Cost effectiveness will also be assured by paying
attention to the involvement of local communities in project design. In particular through
Component 1 (c), the project seeks to ensure that use regulations and management plans for
closed areas, along with compensatory livelihood measures, will generate sufficient interest and
acceptance among local farmers to maintain and protect project investments.
38. Fiscal impact. The public goods investments in desertification control and rehabilitation
are not expected to have significant fiscal impacts. The participating counties, districts and cities
have been selected based on their strong fiscal positions due to revenues from vibrant industry,
mining and agriculture sectors. Since the project will not create any new institutions, any
additional budgetary burden on government finances will be avoided as well.
B. Technical
39. Project areas have been selected following regional and national prioritization criteria to
assure the maximum impact.
40. Site conditions. Project sites have been assessed and classified by soil type, site
condition, topography, water availability (both precipitation and ground water), and the
prevailing natural vegetation in order to ensure that the plantation model applied is best suited
for the site conditions.
41. Technical models. The seven basic technical treatment models that will be used under
the project have been tested and successfully applied under similar conditions within Ningxia
and in the neighboring provinces. These models also take micro-conditions, such as different
moisture regimes and leeward and windward sloping areas, into account.
42. Technical standards. Detailed plantation designs for each site will specify technical
standards and implementation requirements to ensure highest possibly planting success and long-
term survival rates. Contractors will be accountable for adherence to the agreed standards and, if
required, responsible for replanting the following year to meet plantation and survival targets.
High quality seedlings will be selected from local nurseries to avoid excessive transportation
stress and guarantee adaptation to the local conditions.
43. Implementation phasing. Implementation planning and phasing of project activities
poses specific challenges due to the seasonality of the plantation program but also because
various preparatory activities need to be implemented in a specific sequence and time frame so
as to allow the plantation program to proceed on time and successfully. The planting season in
Ningxia is from April to June and from September to November each year. Critical steps in the
implementation planning include: the early dissemination of information of seedling
11
requirements (number, species, specifications) to nurseries for the following year‘s plantation
season (at least one year may be required to produce the required seedlings of some species);
completion of detailed designs for plantation works in a given year; the competitive selection,
contracting, and mobilization of contractors at the beginning of the plantation season;
implementation of the plantation works; and field checks and acceptance. The sequence of these
recurrent project activities and the specific timing will be described in the Project
Implementation Manual.
C. Financial Management
44. The IBRD loan proceeds, including overseeing the Designated Account, will be managed
by Ningxia Hui Autonomous Region Finance Department. A financial management (FM)
assessment conducted by the Bank identified the principal risks as the lack of experiences of
financial management staff in the Regional PMO and county-level PMOs in the management of
Bank projects, and the timely and adequate provision of the required counterpart funds. Actions
to strengthen the project FM capacity have been agreed with the relevant implementing agencies
and include: implementation of a FM training plan throughout project implementation;
application of a Financial Management Manual; and confirmation of mobilization of counterpart
funds by local governments. The assessment concluded that with the implementation of these
actions, the proposed financial management arrangements will satisfy the Bank‘s minimum
requirements under OP/BP 10.02.
D. Procurement
45. The RPMO will: (a) lead and coordinate project procurement activities; (b) provide
guidance to the PMOs on procurement and contract management; (c) review procurement
documents prepared by county, city and district PMOs; (d) centralize procurement reporting for
the project and (e) supervise and monitor procurement activities carried out by PMOs. The
RPMO has limited experience with Bank procurement policies and procedures and limited
managerial capacity.
46. Procurement under the project will be carried out by each county/district/city PMO for
the investments in the respective jurisdictions in accordance with a Procurement Manual
reviewed by the Bank. For each PMO, a full-time procurement staff has been designated and is
in place. Procurement risk exists primarily because of the PMOs‘ lack of experience in
procurement for Bank-financed projects and that procurement would be implemented by staff
without any experience in Bank-financed projects. To manage and mitigate this risk, all
designated procurement staff at RPMO and PMO-levels will attend detailed procurement
training to be organized by the RPMO and, in addition, are required to attend World Bank
procurement training courses.
E. Social (including Safeguards)
47. Involuntary Resettlement (OP4.12). No involuntary resettlement or land acquisition is
expected under the project. The project will involve the protection of open access degraded
steppe and grassland areas through hill closures. These closures will reinforce the Government‘s
general grazing ban policy and may result in access restrictions to resource use on those lands. It
12
is expected that a total area of around 42,000 hectares of open access areas will be closed for
vegetation rehabilitation and protection (Component 1(b)). The resulting access restrictions may
affect 24 villages and 5 forestry farms. The Bank‘s policy on Involuntary Resettlement (OP
4.12) will therefore be applicable.
48. Social Assessment. A Social Assessment was carried out during project preparation to
solicit stakeholder interest in participating in the project and identify risks and potential adverse
impacts to local people in project-affected areas. The assessment included an analysis of local
livelihood conditions, an assessment of potential impacts of hill closures on households, field
surveys, and consultations with farmers on collective land and workers on state farms of all
seven project counties. The assessment defined safeguard measures to mitigate and offset
potential negative impacts and provide livelihood alternatives. These measures have been
integrated in the project design (Component 1(c)).
49. A Process Framework has been developed to guide implementation of the safeguards
measures and provide a framework for community and household participation in the project. It
defines the mechanisms for information dissemination, training, and the participation of affected
people in the design and implementation of the project and in the design and implementation of
compensatory measures to restore income losses. The Process Framework also sets forth the
provision for social impact monitoring, and includes a complaints handling mechanism.
F. Environment (including Safeguards)
50. The project is a Category B project. It is designed to generate significant positive
environmental impacts in the project areas and to result in improvements of the ecological
environment in Ningxia. Negative impacts may occur if the project is not properly implemented,
for example, because of poor detailed design such as selection of unsuitable plantation models
and species, insufficient consideration of hydrological aspects of vegetation establishment, poor
site management, uncontrolled use of pesticides, etc. Such negative impacts are unlikely to
materialize because of the prior experience with such projects in Ningxia and the detailed
preparation work undertaken during project design. Applicable environmental safeguard policies
for the project include: Environmental Assessment (OP4.01); Natural Habitats (OP4.04); and
Pest Management (OP4.09).
51. Environmental Assessment (OP4.01). An Environmental Assessment was carried out
in accordance with Bank Operational Policy OP4.01. The assessment includes an analysis of the
potential positive and negative project impacts, an alternative project analysis, a description of
mitigation measures, and an environmental monitoring plan that is integrated into the project‘s
overall M&E approach. It documents the public consultation carried out during the preparation
of the project. The assessment concluded that the project will bring significant positive impacts
to the natural and the socio-economic environments. Project activities have been designed to
avoid or minimize any adverse impacts on the physical environment. Environmental Protection
Guidelines have been developed that specify mitigation measures in case any negative impacts
occur.
52. Natural Habitats (OP4.04). A number of project sites selected for natural rehabilitation
include habitats of Ammopiptanthus mongolicus, a second-class protected species indigenous to
13
the desert areas of Western China, including Ningxia. Despite the current status of degradation,
these areas still represent valuable natural habitats. The Environmental Assessment and
Environmental Management Guidelines describe the current habitat status in Ningxia and in the
project areas and the threats to these areas to be addressed by the project. The guidelines also
detail the treatment measures to successfully rehabilitate these vegetation communities and
ecosystems. No conversion of the A. mongolicus or other natural habitats areas is foreseen.
53. Pest Management (OP4.09). The establishment and management of protective
plantings and shelterbelts may require the control of pests and use of pesticides. In accordance
with OP4.09, a Pest Management Plan has been prepared. It describes a range of pest and
disease control and management methods, including Integrated Pest Management, and the scope
of the recommended application in various situations. The plan also provides a detailed list of
pesticides and herbicides that may be required under the project and that are in compliance with
the provisions of the World Health Organization‘s recommended categories. The plan includes
detailed provisions for training for project stakeholders and a monitoring program.
Implementation of the training and monitoring programs has been included in the project cost.
54. Public consultation and disclosure. In accordance with the Bank‘s disclosure policy,
consultations with project-affected people were conducted during the Environmental Assessment
processes. The Environmental and Social Assessment Reports, including the Environmental
Protection Guidelines, the Pest Management Plan, and the Process Framework have been
reviewed by the Bank during project appraisal and have been disclosed locally in the project
areas in Ningxia, at the central government level in Beijing, and in the Bank‘s InfoShop.
14
Annex 1: Results Framework and Monitoring
China: Ningxia Desertification Control and Ecological Protection Project
Project Development Objective (PDO): Desertification controlled and key farmland and infrastructure protected in strategically selected locations in Ningxia Hui Autonomous Region
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.) YR 1 YR 2 YR3 YR 4 YR5
Indicator One: Project
areas, where desertification
is controlled3
ha 0 0 0 8,000 0 30,000
Mid-term,
end-project Field Survey
Ningxia Forestry
Planning and
Design Institute
Results can only be
judged 3 years
after control
measures
implemented
Indicator Two: Value of
infrastructure and farmland
protected by project
investments
US$
(billion)
0 0 0 7.5 0 30 Mid-term,
end-project Field Survey
RPMO/ Ningxia
Forestry Planning
and Design
Institute
INTERMEDIATE RESULTS
Intermediate Result (Component One): Controlling Desertification and Degradation
Intermediate Result indicator
One: Sand areas reaching
shrub vegetation cover
above 30%
ha 0 0 0 2,500 0 10,000
Mid-term,
end-project Field Survey
Ningxia Forestry
Planning and
Design Institute
Results for
indicators 1, 2 and
3 can only be
measured with a
time lag of 3 years
Intermediate Result indicator
Two: Closed areas reaching
a vegetation cover of over
30%
ha 0 0 0 5,000 0 17,000 Mid-term,
end-project Field Survey
Ningxia Forestry
Planning and
Design Institute
Intermediate Result indicator
Three: Project area of
degraded land restored with
trees and shrubs with a
cover of over 40%
ha 0 0 0 500 0 3,000 Mid-term,
end-project Field Survey
Ningxia Forestry
Planning and
Design Institute
Intermediate Result indicator
Four: No. of Households
involved in management
arrangements
No. 0 0 50 100 200 300 Annually
from year 2
Project
Reporting RPMO
3 Desertification is considered controlled by a vegetation cover of over 30% on moving sand dunes, and a shrub/tree cover of over 30% on degraded arid and
semi-arid land combined with a full protection from livestock grazing.
15
Intermediate Result (Component Two): Shelter Belt Plantation Protecting Key Farmland and Infrastructure
Intermediate Result indicator
One: Areas of farmland
protected under project
ha 0 0 0 2,000 5,000 8,000 Annually
from year 3
Project
Reporting RPMO
Intermediate Result indicator
Two: Road and railway
infrastructure protected
km 0 0 0 200 400 600 Annually
from year 3
Project
Reporting RPMO
Intermediate Result (Component Three): Project management, capacity building and M&E
Intermediate Result indicator
One: Client days of training
provided.
Person
times 0 500 2,000 6,000 9,000 11,500 annually
Project
Reporting RPMO
*Please indicate whether the indicator is a Core Sector Indicator (see further http://coreindicators)
**Target values should be entered for the years data will be available, not necessarily annually.
16
Annex 2: Detailed Project Description
CHINA: Ningxia Desertification Control and Ecological Protection Project
1. Ningxia Hui Autonomous Region is located between the middle reaches of the Yellow
River in a transitional belt between the Loess Plateau, and three of China‘s main deserts: the
Mao Wu Su to the east, the Tengger to the west, and the Ulan Buh to the north. In particular, the
Mao Wu Su Sand Land in the east and the Tengger Desert in the west cover extensive parts of
Ningxia in addition to fragmented pieces of sand-covered land in the middle of Ningxia and the
Yinchuan (Yellow River) Plain. The total area of land threatened by desertification dynamics in
Ningxia is 2.97 million hectares (57.2% of its total land area).
2. Desert encroachment has been a historical challenge in Ningxia. During the first half of
the 20th century, intense over-cutting and overgrazing destroyed vegetation and caused many of
the former semi-fixed and fixed dunes (sandy lands) to lose their protective vegetation cover.
Most of these areas are considered unsuitable for any livestock grazing on a long-term
sustainable basis. The Government has thus followed a policy of restructuring the livestock
sector away from grazing towards systems based on fodder production and pen feeding.
3. A series of major programs implemented in the last three decades has worked to partially
restore some land productivity, resist the spread of shifting sand and reduce damage from
sandstorms, by gradually fixing some shifting sand and helping some semi-fixed dunes become
fixed. These efforts have resulted in a noticeable reduction of the overall desertification and land
degradation process, and in some locations, even in a slight reversal. Overall, the Region
remains in a fragile balance and is threatened by a continued pressure from population growth
and economic development. Combined with the expected climate change, the efforts against
desertification remain a continuous struggle. Currently, the Mao Wu Su Sand Land to the east of
the Yellow River covers 891,000 hectares covered by sand, of which 150,000 hectares are
drifting or semi-drifting sand dunes. The Tengger Desert in Zhongwei City stretches over
124,000 hectares of sandy land, of which 70,400 hectares are drifting or semi-drifting sand
dunes. These drifting sands are threatening farmland, villages and houses, as well as putting
important infrastructure assets at risk.
4. A combination of ecological vulnerability analysis and assessment of economic
development importance has been used under the project to select seven cities/counties/cities for
inclusion into the project: Pingluo County, Lingwu City, Litong District, Qingtongxia City,
Xingqing District, Yanchi County, and Zhongwei City. Project sites are linked to significant
economic infrastructure in Ningxia: Ningdong Heavy Chemical Energy Base, Yinchuan Hedong
Airport, Xin‘ning Energy and Chemical Base, Zhongwei Xiangshan Airport, Beijing-Tibet
Highway, West to East Gas Pipeline Project, Baotou-Lanzhou Railway, Taiyuan-Zhongwei-
Yinchuan Railway and West to East Electricity Transmission Corridor.
Project Design
5. The project has three components: (a) Controlling Desertification and Degradation; (b)
Protective Shelterbelt Plantations; and (c) Project Management, Capacity Building and M&E.
17
The total project cost is estimated at US$114 million, of which US$80 million will be financed
by the IBRD loan; the remaining US$24 million will be provided as counterpart funds. The
project would be implemented over a period of five years. The components include the
following sub-components and activities:
6. Component 1: Controlling Desertification and Degradation (Total Cost: US$89.38
million). This component will address the main drivers of desertification and degradation which
relate to moving sand through wind erosion dynamics and unsustainable land use practices. It
comprises three sub-components:
(a) Moving Sand Stabilization (Total Cost: US$68.50 million). This sub-component will
support the planning, design, and establishment of straw checker boards and the seeding
and planting of indigenous shrub and grass on about 19,000 hectares of moving and semi-
moving sand dune areas, with focus on the Mao Wu Su Desert on the Eastern Bank of the
Yellow River and the Tengger Desert in Zhongwei. Both sand areas are continuously
expanding and encroaching on farm land, human settlements, roads and other
infrastructure. They threaten to impact the course of the Yellow River and thus pose an
additional risk to the stable flow of the river and for the existing infrastructure.
The establishment of straw grids, combined with supportive grass and shrub planting will
allow an initial fixation of the sand. The grids remain intact for about three to five years,
allowing time for the development of the vegetation cover and subsequently for the
permanent stabilization. This stabilization is a long-term process of ecological recovery.
It is sustained through the development of inorganic and organic soil crusts formed by
atmospheric dust, weathering, desert algae and mosses, and the accumulation of organic
matter over time along with the natural succession to shrub vegetation. Planting activities
will be complemented in selected sites by supporting investments in fire control
equipment, construction of fire breaking tracks and passage routes, watch towers, small
scale supplemental but temporary irrigation infrastructure, small buildings for technical
staff and workers, and project information and warning signs.
(b) Degradation Control and Re-vegetation (Total Cost: US$15.44 million). This sub-
component will control and reverse degradation of arid and semi-arid shrub-lands and
steppe areas caused by unsustainable land use, mainly overgrazing, and to restore a
natural protective vegetation cover. Some 42,000 hectares will be closed, protected, and
managed for natural re-vegetation supplemented by shrub planting and assisted
vegetation restoration in all seven project counties. An additional 4,600 hectares will be
planted with trees and shrubs. The sub-component will also support construction of
access tracks, fire breaks, watch towers and other infrastructure required to manage and
monitor the rehabilitated areas.
(c) Integrated Land Management (Total Cost US$5.44 million). This sub-component will
complement sub-components 1(a) and 1(b) by mitigating potential negative impacts on
land users and ensuring acceptance and long-term sustainability of the desertification
control outcomes. It will complement Government policies and programs of supporting a
restructuring of the livestock sector from traditional grazing to pen feeding, and support
the implementation of the project‘s Process Framework to improve acceptance and
18
ensure long-term sustainability of project outcomes. It will finance compensatory
investments, such as economic tree plantations and fodder production for livestock where
access restrictions to grazing areas occur. Such alternative livelihood options would be
identified through a participatory process and would be funded under the project. It will
also support the development of long term land management arrangements for all
relevant project sites where such arrangements are feasible.
7. Component 2: Protective Shelterbelt Plantations (Total Cost: US$17.37 million). The objective of this component is to protect key farmland and infrastructure from desertification
by tree and shrub shelterbelt plantations. This component will provide funding for plantation
contracts for a total some 5,500 ha of shelterbelts along roads, irrigation canals and around
agricultural fields and fruit orchards in key strategically selected locations. These plantations
will serve as wind breaks, improve the ecological environment, and help sustain and increase
agricultural yields.
8. Component 3: Project Management, Capacity Building and M&E (Total Cost:
US$6.80 million). This component will support: (a) information and awareness campaigns for
project beneficiaries and stakeholders; (b) the detailed technical design, field implementation and
construction, construction supervision, and final acceptance checks of desertification control
works, safeguards supervision, and project progress reporting; (c) applied research on selected
topics such as desertification control, vegetation restoration, landscape and grazing management,
and other topics that will be demand-driven and identified during implementation; (d) training
and extension for staff of county-level Project Management Offices, and forest farms, as well as
communities and other local stakeholders on the establishment, maintenance and post-
management of desertification control and plantation investments for long-term sustainability;
and (e) desertification control impact monitoring and field demonstration that is integrated into
China‘s national and regional desertification monitoring system.
Specific Design Considerations
9. Site selection. Project sites have been assessed and classified in five categories
according to soil type, site condition, topography, water availability (both precipitation and
ground water) and existing natural vegetation to guide the selection of the most suitable
treatment models for each location. Based on the environmental conditions and strategic
protection importance, key project sites have been identified. A detailed list of project sites and
sub-sites is included in the Project Implementation Manual. Stakeholder interest in project
participation has been solicited during the preparation (social assessment) and voluntary
participation will be ensured through the application of the Process Framework. All sites and
investment activities focus primarily on public benefit plantation/protection and would be
implemented on state land or collective land, which do not require any land acquisition.
10. Treatment models. Seven basic treatment or technical models for desertification control
and vegetation rehabilitation have been designed taking into consideration the purpose of the
treatment and site conditions. The general approach of these models is to build on non-irrigative
plant protection and vegetation establishment. Some temporary watering is required for the
initial stage of plant establishment. In the longer term, however, vegetation cover would develop
based on the existing soil moisture and precipitation regimes without drawing on additional
19
ground or surface water exploitation. Only locally adapted indigenous species or species widely
introduced and successfully tested in the project areas will be used. Treatment models, including
specific parameters such as site preparation, species, seedling types, planting densities, and
supplementary activities are described in the Project Implementation Manual.
11. Seedling supply and nursery infrastructure. The project will require about 25 million
seedlings annually during the main implementation period. There are about 2,000 hectares of
nursery gardens in the seven project counties/cities/districts that are supplying an estimated 110
million seedlings annually of a diverse range of species, including various types of broadleaved
and evergreen trees, fruit and economic trees and deciduous arbor trees and shrubs.
12. The existing nursery structure includes private and forest enterprise owned nurseries
(often sub-contracted to household operators) of different size and capacity. The existing
nursery capacity and structure is considered sufficient and flexible to respond to the project
needs. A specific challenge, however, is that the project will require a large number of
indigenous tree, shrub, and grass species that may not yet be readily available in the market. To
allow nursery operators to be ready and be able to respond to the project demand, each PMO will
implement an information dissemination program to all local nursery operators to inform
nurseries well in advance of the project‘s seedling requirements and give sufficient lead time to
expand seedling production and adjust the types of seedlings accordingly. Because the project
will not directly procure seeds and seedlings from nurseries but through contractors for
plantation works, contractors will have to rely on the availability of appropriate seedlings in the
plantation areas.
13. Straw for checkerboards. For the stabilization of drifting sand dunes, straw grids
(checker-boards) will be built covering nearly 20,000 hectares. Checker boards consist of 1x1
meter wide straw grids formed by strips which are about 10-20 centimeters high and 5-10
centimeters wide. Grid construction requires are about 12-15 tons of wheat straw per hectare,
equivalent to a total demand of 240,000-300,000 tons of straw over five years. Ningxia has an
annual wheat production area of some 230,000 hectares, potentially yielding around 300,000-
600,000 tons of straw annually. Straw is traditionally considered a by-product of limited value
in crop production and is often still being burnt on the field. However, its value as a source of
energy or raw material is increasingly recognized. In particular in Ningxia, a significant amount
of straw is harvested and used in the paper industry and for other on-going desertification control
programs. An additional project demand of about 60,000 to 80,000 tons per year (comprising
some 20-30 percent of the existing local production) could have a noticeable impact on the local
straw market.
14. To avoid market distortions, the RPMO will closely monitor the wheat straw market and
price developments and will prepare an annual market report. In case the project has a
significant influence4 of the project on local straw markets, alternative options would be
considered. These could include procuring straw from neighboring provinces or considering the
use of other materials for checker boards (e.g. rice straw).
4 ‗Significant influence‘ will be defined by observed price increases exceeding 20% over the average market prices
for the years 2009 to 2011.
20
15. Monitoring long-term impact. The success and impact of desertification control
measures can only be assessed over the longer term, which is beyond the scope of the five-year
project. The project will therefore rely on and use the existing desertification monitoring
institutions and infrastructure and complement them. Specifically, the Ningxia Forestry
Planning and Design Institute, which has the formal mandate and is responsible for the periodic
monitoring and assessment of the Government‘s own programs on desertification control, would
be assigned the task of long-term monitoring. The specific responsibilities of the Institute as
well as the details of the incremental support to be provided through the project, including
supplementary satellite imagery and operational costs, will be detailed at project start-up in a
Memorandum of Agreement between the Ningxia Finance Department, the RPMO and the
Institute.
21
Annex 3: Implementation Arrangements
Project Institutional and Implementation Arrangements
1. Regional Leading Group. The Government of the Ningxia Hui Autonomous Region
has established a Regional Leading Group, which is chaired by the Governor of Ningxia and
includes representation from the departments of Finance, the Development and Reform
Commission, Water Resources, Transport, Environmental Protection, Forestry and other line
agencies, to provide overall guidance for foreign funded projects in Ningxia (Chart 1). The
Leading Group will be responsible for providing policy guidance and oversight of the project, for
establishing the regulatory framework for its implementation, and for the performance of the
implementing agencies. The Secretariat of the Leading Group is housed in the Foreign Debt
Management Department of the Ningxia Finance Bureau.
2. Regional Project Management Office (RPMO). A RPMO has been established in the
International Forestry Cooperation Center of the Ningxia Forestry Bureau. The RPMO will be
responsible for the overall coordination of project activities, M&E, and will centralize all
progress, financial, and procurement reporting for the project. Specific responsibilities include:
(a) preparation of consolidated annual implementation and procurement plans; (b) technical
supervision of the quality of outputs, including final check and acceptance; (c) coordination of
training and capacity building, technical exchange, training and studies; (d) coordination and
overall supervision of procurement implementation in the counties; (e) coordination of the
project impact M&E activities with the Ningxia Forest Planning and Design Institute; and (g)
liaison with the Bank for supervision and implementation support.
3. County/city/district Project Management Offices. Each project county, city and
district has established a PMO under the respective forestry bureaus. Main responsibilities
include: (a) formulate the annual work and procurement plans for submission and approval by
the RPMO; (b) implement the annual procurement plans and be responsible for all procurement
for activities to be implemented in the area; (c) be responsible for day-to-day implementation of
project activities; (d) carry out technical training and provide technical guidance to contractors
and staff; (e) supervise the performance of plantation works contractors; (f) carry out final
inspection and acceptance of plantation works; (g) carry out financial reporting in line with
government regulations; (h) prepare periodic physical progress reports to be submitted to the
RPMO for review and consolidation; and (i) under the coordination of the RPMO, participate in
the technical supervision of the project activities and collaborate in the implementation of the
M&E system.
4. Expert Working Group. The Project will enroll a group of qualified and experienced
specialists in key areas of expertise to constitute an Expert Working Group to provide all-around
consulting service for the project and provide technical guidance and support. The expert group
will work directly under the RPMO.
22
Chart 1: Project Organizational Arrangements
Financial Management, Disbursement and Procurement
Financial Management
5. Financial management capacity. Designated financial staff with relevant educational
background and work experience has been assigned to the RPMO to be responsible for the
financial reporting and review of disbursement applications at the regional level. At the county
level, the PMOs have assigned dedicated financial staff as well. Most of the project financial
staff in the RPMO and the PMOs does not have experience in the management of Bank-financed
projects. The timely provision of adequate counterpart funds has also been identified as a project
risk. An action plan has therefore been developed to address the main weaknesses in financial
management (Table 1). The financial management risk was assessed as substantial. With the
implementation of the action plan, the residual risk is rated moderate.
Ningxia Government Foreign Debt Management Leading Group
Ningxia Development and
Reform Commission
(PDRC)
Ningxia Finance
Department
(NFD)
Ningxia Forestry Bureau
NFB)
Ningxia Regional Project
Management Office
(RPMO)
County (district, city) DRC County (district, city) Finance
Bureaus
County (district, city)
Forestry Bureaus
County (district, city) Project Implementation Offices
Pingluo PMO
Xingqing PMO
Lingwu PMO
Yanchi PMO
Litong PMO
Qingtongxia PMO
Zhongwei PMO
Consultant
Working Group
23
Table 1: Action Plan to Address Weaknesses in Financial Management
Weakness Actions Responsible
Person
Completion
Date
Project financial staff
does not have experience
with Bank financed
projects.
FM training plan to be prepared.
All project financial staff to be trained
before and during project implementation.
NFD and
RPMO
Before and
during project
implementation
A Financial Management Manual has been
prepared to standardize FM procedures and
provide guidance to project financial staff
RPMO and
NFD
August 15, 2011
Lack of timely and
sufficient counterpart
funds
Local government need to confirm that
counterpart funds have been mobilized.
NFD and PMOs During project
implementation
6. Budgeting. Each PMO will prepare an annual project work plan, including an annual
project budget and list of funding sources. Counterpart funds committed by the county, district
and city governments will be reviewed and approved on an annual basis and be included in the
project budgets. A budget variance analysis will be conducted semi-annually to ensure that
project implementation can proceed as planned. The annual work (and budget) plan and the
budget variance analysis will be submitted to the RPMO for review and comments.
7. 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 PMOs will be the lowest level
for project accounting. The RPMO and each of the PMO will be managing, monitoring and
maintaining their respective project accounting records for the activities they execute. Original
supporting documents will be retained by the originating PMO. The Bank will monitor the
accounting process, especially during the initial stage of implementation, to ensure complete and
accurate financial information will be provided in a timely manner.
8. The RPMO and the PMOs will be responsible for project financial reporting. The RPMO
and the PMOs will prepare their stand alone financial statements, which will be reviewed and
consolidated by the RPMO, with assistance from the Ningxia Finance Department, before
submission to the Bank for review. The unaudited semi-annual consolidated project financial
statements will be prepared and furnished to the Bank by the RPMO by March 15 and September
15. , in form and substance satisfactory to the Bank.
9. Internal Control. The Ministry of Finance has issued the relevant accounting policy,
procedures and regulations. The project Financial Management Manual issued by the RPMO
will align the financial management and disbursement requirements among PMOs. In addition,
monitoring by the RPMO and regional and county finance bureaus (which will review each
withdrawal application) and the annual external audit will serve as mechanisms to ensure that
financial management controls are functioning appropriately.
24
10. Audit. The Audit Office of the Ningxia Hui Autonomous Region will carry out the
external audit of the project accounts and will issue an annual audit report. The annual audit
report of the project financial statements will be due to the Bank within six months after the end
of each calendar year. This requirement is stipulated in the loan agreement. The RPMO is the
responsible agency to provide the audit report to the Bank.
Disbursement
11. Disbursement Arrangements. Four disbursement methods will be applied under the
project: advance, reimbursement, direct payment and special commitment. Supporting
documents required for different disbursement methods will be documented in the Disbursement
Letter issued by the Bank. The Bank loan would be disbursed against eligible expenditures
(taxes inclusive) as presented in the Table 2.
Table 2: Disbursement Methods
Disbursement Category
IBRD Loan
Allocated Amount
(US$ million)
Percentage of Expenditures to
be Financed
1. Civil Works and Goods 79.00 74
2. Services, Training and
Incremental Operating Cost
0.80 100
3. Front-end-Fees 0.20 100
Total 80.00
12. Fund flow arrangements. A Designated Account, denominated in US dollar, will be
opened at a commercial bank acceptable to the Bank. The Designated Account with be managed
by Ningxia Finance Department. Bank loan proceeds will flow from the Bank into the
Designated Account. Loan proceeds will then be disbursed either to city/district county finance
bureaus and then to city/county/district PMOs or directly to contractors or suppliers based on
withdrawal applications. The finance bureaus at the regional and county levels will be
responsible for reviewing the withdrawal applications for Bank loan reimbursement. Chart 2
below describes the fund flow mechanism.
13. Retroactive financing. Retroactive financing of US$8.0 million will apply for this
project for eligible expenditures commencing February 1, 2012 and is specified in the Loan
Agreement.
25
Chart 2: Fund Flow Arrangements
Procurement
14. Capacity assessment. The procurement capacity assessment identified the lack of
experience with World Bank financed projects of the procurement staff in the RPMO and the
PMOs as the principal risk. Mitigation measures include: (a) procurement training provided
during project preparation; (b) preparation of a procurement training plan by the RPMO to train
all procurement staff before and during project implementation; (c) preparation of a Procurement
Manual and issuance by the RPMO to standardize project procurement procedures and provide
guidance to project procurement staff; and (d) procurement agents with experience in World
Bank procurement procedures recruited by the RPMO or the PMOs to assist with procurement
planning and implementation. Overall procurement risk is considered ‗substantial‘.
15. Applicable guidelines. Procurement will be carried out in accordance with the
―Guidelines: Procurement of Goods, Works and Non-Consulting Services under IBRD Loans
and IDA Credits & Grants by World Bank Borrowers‖ dated January 2011; and ―Guidelines:
Selection and Employment of Consultants by World Bank Borrowers‖ dated January 2011; and
the provisions stipulated in the Loan Agreement. NCB shall be carried out in accordance with the
Law on Tendering and Bidding of the People’s Republic of China promulgated by Order of the
President of the People‘s Republic of China on August 30, 1999 subject to the modifications
stipulated in the Legal Agreement in order to ensure consistency with Bank Procurement
Guidelines.
Contractor/
Supplier
PMOs
WA Flow
Funds Flow
World Bank
NFD
CFBs
RPMO
26
16. Procurement of Works. Works procured under this project will include: (a)
establishment of straw checker boards combined with indigenous shrub and grass seeding and
planting; (b) enclosure, protection and management of heavily degraded arid and semi-arid areas
and natural re-vegetation supplemented by shrub planting and assisted vegetation restoration; (c)
plantation of shelterbelts along roads, irrigation canals and around agricultural fields and fruit
orchards in selected locations; and (d) construction of access tracks, fire breaks, watch towers
and small buildings for staff and workers, and project information and warning signs.
Procurement will be conducted using the Bank‘s Standard Bidding Documents for all
International Competitive Bidding (ICB) and National Model Bidding Documents agreed with or
satisfactory to the Bank for all National Competitive Bidding (NCB).
17. Planting/seeding would be procured under single responsibility civil works contracts.
The contractor would be responsible for purchasing and planting of trees, indigenous shrub and
seedlings, in order to ensure the survival of the trees and indigenous shrub and seedlings planted.
18. Procurement of Goods. Goods procured under this project will include office and
monitoring equipment for the PMOs and the RPMO. Procurement will be done using the Bank‘s
Standard Bidding Documents for all ICB and National Model Bidding Documents agreed with or
satisfactory to the Bank for all NCB.
19. Selection of Consultants. Consulting services will include: (a) consulting services for
the supervision and acceptance checks of plantation works; (b) project M&E of implementation
achievements and environmental and socio-economic impacts; and (c) applied research and
demonstrations. Chinese universities and research institutes may be included in shortlists as a
source of consultants, provided they possess the relevant qualifications and they are not in a
conflict of interest situation. In such cases, QBS or CQS (for small assignments) would be used,
if the shortlist also includes consulting firms.
20. Training and Workshops. Plans for training and workshops will be developed by the
RPMO and the PMOs, and included in project annual work plan for Bank review. Expenditures
incurred in accordance with the approved plans for training and workshops will be the basis for
reimbursement.
21. Procurement Plan. A Procurement Plan for the first 18 months of project
implementation has been prepared by the PMOs and consolidated by the RPMO and found
acceptable by the Bank. It will be made available in the project‘s database and on the Bank‘s
external website. The Procurement Plan will be updated annually or as required to reflect
implementation needs and improvements in institutional capacity.
22. Frequency of Procurement Supervision. Prior review supervision will be carried out
through the World Bank office in Beijing. During the first year of implementation, the first civil
works contract in every county will be subject to prior review, regardless of the contract value.
Ex-post procurement reviews will be carried out by the Bank every 12 months. The ex-post
review sampling ratio will be one out of five contracts.
23. Prior-Review Thresholds. The prior-review thresholds are indicated in the table 3
below.
27
Table 3: Procurement Thresholds
Note: (a) ―—‖ refers to No Threshold; and (b) there are no contracts subject to international competition during the
first 18 months.
24. Retroactive financing. Civil works expected to be procured under retroactive financing
are included in the Procurement Plan and will be subject to 100% prior review.
Environmental and Social Aspects (including safeguards)
25. The project is a Category B project. The project is designed to generate significant
positive environmental impacts in the project areas and to result in improvements of the
ecological environment in Ningxia. Negative impacts are unlikely to materialize because of the
long-term experience with desertification control and protection activities in Ningxia and the
detailed preparation work undertaken during project design. Applicable environmental
safeguard policies include: Environmental Assessment (OP4.01); Natural Habitats (OP4.04); and
Pest Management (OP4.09).
26. Environmental Assessment (OP4.01). An Environmental Assessment was conducted in
accordance with Bank Operational Policy OP4.01 and national regulations and a comprehensive
Environmental Assessment Report was prepared. The assessment includes an analysis of
potential positive and negative impacts, an assessment of the various options of shrub and grass
species, planting models, planting sites selection, an alternative project analysis, a description of
mitigation measures, and an environmental monitoring plan that is integrated into the project‘s
overall M&E approach. It documents the public consultation carried out during preparation.
27. The Environmental Assessment concluded that the project will bring significant positive
impacts to the natural and socio-economic environments. The project would yield these benefits
through stabilizing the moving sands in project areas, restoring and increasing natural vegetation
cover, protecting key farmland areas and other measures. Project activities have been designed
in ways to avoid or minimize adverse impacts on the physical environment. Environmental
Protection Guidelines have been developed that specify mitigation measures in case negative
impacts materialize. With the proper implementation of the pre-designed desertification control
and planting models and adherence to these guidelines, negative environmental impacts can be
avoided.
Prior Review
Thresholds
(US$
million)
Procurement/Selection Method Thresholds (US$ million)
ICB NCB Shopping QCBS QBS CQS
Least
Cost SSS
Goods ≥0.3 ≥1.0 <1.0 <0.1
Works ≥5.0 ≥20 <20 <0.2
Consulting
Services
≥0.1 for
firms
≥0.05 for
individuals
All for SSS
-- -- <0.3 -- --
28
28. Natural Habitats (OP4.04). A number of project sites selected for natural vegetation
rehabilitation and restoration include habitats of Ammopiptanthus mongolicus, an evergreen
xerophyte shrub indigenous to the desert areas of Western China, including Ningxia. This
species is also classified as a second class protected plant by the Chinese Government. Despite
the current status of severe degradation, these areas still represent valuable natural habitats. The
Environmental Assessment and the Environmental Management Guidelines describe the current
status of these habitats in Ningxia and within the project area as well as the threats to these
habitats that will be addressed by the project. The Guidelines also describe the specific treatment
models and measures to successfully rehabilitate these natural vegetation communities and
ecosystems. No conversion of the A. mongolicus steppe areas is foreseen under the project.
29. Pest Management (OP4.09). The establishment and the management of protective
plantings and shelterbelts may require the control of pest and diseases and the use of pesticides
and/or herbicides. The project will improve current pest management practices in the project
areas through: (a) promoting the primary use of Integrated Pest Management; (b) the use of the
application of high efficiency biological pesticides, and where needed, low toxic, low residual
effect chemicals; and (c) prohibiting the use of high toxic, high residual effect pesticides; (d)
reducing the reliance on chemical pesticides and chemical fertilizers; and (e) promoting the use
of non-chemical technologies for insect and pest control.
30. In accordance with OP4.09, a Pest Management Plan has been prepared. It describes the
overall policy framework and institutional responsibilities for pest management and control in
Ningxia, includes an environmental, occupational health and safety risk assessment. It also
describes a range of pest and disease control and management methods, including Integrated Pest
Management, and the scope of their recommended application in various situations. The Plan
also provides a list of pesticides and herbicides that may be required under the project potentially
and are in compliance with the provisions of the World Health Organization‘s recommended
categories. The Plan also includes detailed provisions for training of project stakeholders and a
monitoring program. Implementation of the training and monitoring programs has been included
in the project budget.
31. Arrangements for environmental monitoring. The Environmental Monitoring Plan
included in the Environmental Assessment and the provisions of the Environmental Protection
Guidelines and Pest Management Plan provide the framework for the project‘s compliance
monitoring with the environmental safeguards. Responsibility for such compliance monitoring
rests with the RPMO, the Ningxia Forestry Design and Planning Institute, and the PMOs. The
specific arrangements for environmental compliance monitoring are detailed in the Project
Implementation Manual.
32. Involuntary Resettlement (OP4.12). No involuntary resettlement or land acquisition is
expected under the project. The project will, however, involve the protection of open access
degraded steppe and grassland areas through hill closures. Such closures will reinforce the
Government‘s closure policy and general ban on grazing and may result in access restrictions to
resource use on those lands. It is expected that a total area of around 42,000 hectares will be
closed for vegetation rehabilitation and protection (Component 1(b)). The resulting access
restrictions to these open areas may affect 24 villages and 5 forestry farms with a total population
29
of 23,250 people. The Bank‘s policy on Involuntary Resettlement (OP 4.12) will therefore be
applicable.
33. Social Assessment. As part of the overall due diligence process, a Social Assessment
Study was carried out during project preparation to identify the specific risks or potentially
adverse impacts to local people in project-affected areas. The social assessment focused on
those sites that have been selected for hill closure and vegetation rehabilitation. Project-
supported closures will reinforce the official hill closure policy and ban on grazing and thus may
result in the reinforcement of access restrictions to these open access lands with some livelihood
implications. The assessment included an analysis of local livelihood conditions and an
assessment of potential impacts of hill closures on households in project areas. The assessment
also included detailed field surveys and consultations with farmers on collective land and state
farm workers on state farms of all seven project counties. Although the hill closure sites are not
legally designated protected areas under Bank OP4.12, the social assessment defined various
safeguard measures to mitigate and offset potential negative impacts and provide livelihood
alternatives. These measures have been integrated in the project design (Component 1(c)).
34. Process Framework. A Process Framework has been developed to provide a framework
for household participation in project implementation and guide the implementation of the social
safeguards measures. The framework defines the mechanisms for information dissemination,
training, and the participation of affected people in the design and implementation of
compensatory measures to restore income losses. It also sets forth appropriate compensatory and
mitigation measures to ensure people‘s livelihoods are compensated and negative livelihood
impacts brought about by the project are avoided or mitigated. The framework sets forth a
number of livelihood activities to choose from, such as pen-breeding and feedlot construction,
fodder production and storage, rotational grazing, remunerative labor input to project activities,
and economic tree planting. The Process Framework also sets forth the provision for social
impact monitoring and includes a complaints handling mechanism. Responsibility for social
impact monitoring rests with the RPMO and the PMOs.
35. Public consultation and disclosure. In accordance with the Bank‘s disclosure policy,
consultations with project-affected people were conducted during the Environmental/Social
Assessment processes during July-October 2010 and during July-September 2011 and are
documented in the respective reports. Public participation under the Environmental Assessment
process included the publication and dissemination of project information in project areas (in
July 2010 and October 2010), solicitation of feedback on overall project design and technical
models during several occasions, and a separate questionnaire survey covering all seven project
counties/districts/cities and over 500 households. Results of the survey confirmed the public‘s
perception of the current bad environmental conditions and the strong support to the project. The
public consultation process under the Social Impact Assessment involved interviews with
government, forest farms, and local villagers, mapping and rapid rural appraisals, analysis of
stakeholder demands and expectations and consultations on the process and principles for
participation.
36. The Environmental and Social Assessment Reports, including the Environmental
Protection Guidelines, the Pest Management Plan, and the Process Framework were reviewed by
the Bank as part of project appraisal and disclosed locally in the project areas in Ningxia (in
30
November and December 2011), at the central government in Beijing, and in the Bank‘s
InfoShop.
Monitoring and Evaluation
37. Input-output monitoring. Responsibility for physical progress (input-output)
monitoring rests with the PMOs at the county/city/district levels. The quality of all works
implemented under the project will be checked, and if technical standards are met, accepted by
the PMOs. The PMOs will be responsible for construction supervision and acceptance checking
of 100 percent of the (checker board/planting/seeding) works contracts implemented in their
respective areas, in accordance with government procedures and guidelines. The PMOs will also
prepare semi-annual progress reports, which will be consolidated by the RPMO.
38. The RPMO will check and verify at least 30 percent of all works based on random
selection. The RPMO will engage a construction supervision agency or agent to carry out such
random checks, but will retain the responsibility for ensuring timely progress reporting to the
Bank and for the accuracy of the information. To facilitate random field checks, detailed maps
and tables with all project activities geo-referenced and coded have been be prepared during
project preparation. These will be further detailed and confirmed during detailed design. The
location of individual project activities will be marked with coordinates. Remote-sensing
technology, in particular the Global Positioning System, will be used to verify field works. The
quality and accuracy of project works would be assured by assigning clear responsibilities within
the PMO management structure. Specific implementation arrangements and institutional
responsibilities are detailed in the Project Implementation Manual.
39. Impact Monitoring and Evaluation. Desertification monitoring in China is
implemented by the Desertification Monitoring Center of the Forestry Surveying and Planning
Institute of the State Forestry Administration. The Center was established with the responsibility
to: (a) formulate technical methods for desertification monitoring, data processing and
management, and forecasting of desertification trends; (b) guide the establishment of local
desertification monitoring systems; and (c) prepare national and regional desertification project
feasibility reports and progress reports. The Center has developed the: ―China Desertification
Monitoring Technical Regulations‖ and ―China Desertification Monitoring Indicator System‖.
Every five years, the center carries out a country-wide desertification survey and assessment; the
latest was carried out in 2009. At the Ningxia regional level, the Ningxia Forestry Planning and
Design Institute is the direct counterpart of the national level Desertification Monitoring Center.
The Institute has the official mandate for the periodic assessments of the Government‘s
desertification control programs in Ningxia.
40. Impact monitoring under the project will be integrated into the Government‘s existing
impact monitoring. It will be based on standard remote sensing technologies, field verification
(permanent plots), and will apply existing monitoring protocols for desertification control.
Specifically, for the purpose of project monitoring, the Ningxia Finance Department and the
RPMO will sign a Memorandum of Agreement with the Ningxia Forestry Planning and Design
Institute at project start-up or, alternatively, recruit qualified consultants. This agreement or
terms of reference will detail: (a) the list of indicators, which would include at least all indicators
listed in the project results framework as survey indicators; (b) sample size and sampling
31
methods; (c) frequency of data collection; and (d) reporting format. The details of the
incremental support to be provided through the project, such as supplementary satellite imagery
for project sites, and incremental operational costs, would be confirmed at project start-up.
32
Annex 4 Operational Risk Assessment Framework (ORAF)
China: Ningxia Desertification Control and Ecological Protection Project (P121289)
Project Stakeholder Risks
Stakeholder Risk Rating Low
Description: Risk Management:
The Project is integrated into the Regional Government‘s strategy of desertification
control, ecological rehabilitation, and economic development. The project also supports
national targets. There is strong commitment from the Regional Government to the project as is reflected in government strategic documents and program.
Public perception of this project in the country, and particularly among local stakeholders, is expected to be positive because of the beneficial environmental impacts expected.
The Bank team will discuss desertification issues with central, regional, and county level governments on a regular basis to confirm
complementarity between government policies, plans, and activities and the project.
Resp: Bank Stage: Implementation Due Date: 31-Mar-2018 Status: Not Yet Due
Implementing Agency (IA) Risks (including Fiduciary Risks)
Capacity Rating Substantial
Description: Risk Management:
The RPMO and PMOs have only limited experience with Bank-financed projects and
need to develop and implement the required management, FM, procurement, and
reporting systems. Other capacity risks include:
(1) Limited experience in contract management. (2) Weak FM and procurement capacity
(3) Inter-departmental coordination issues.
(3) Phasing of project activities due to the seasonality of the planting program. (4) Possible counterpart funding shortages or delays.
Preparation and application of the detailed Project Implementation Manual, that describes the implementation procedures and
responsibilities, activity sequencing, project monitoring and reporting, procurement, financial management and other important
implementation aspects. Continuous training, particularly on procurement and financial management. Regular and on-demand Bank supervision and implementation support, including extensive prior review of procurement activities during the first year of
implementation.
Resp: Bank Stage: Implementation Due Date: 31-Mar-2018 Status: Not Yet Due
Governance Rating Low
Description: Risk Management:
A strong overall governance framework for project implementation is place. A Governor-
level leading group will oversee overall project implementation and provide policy
guidance. The Ningxia Finance Department is fully involved in financial management of
project funds.
Regular and on-demand supervision, with particular focus on ownership, commitment, accountability, and decision making, especially
on procurement and financial management.
Resp: Bank Stage: Implementation Due Date: 31-Mar-2018 Status: Not Yet Due
33
Project Risks
Design Rating Low
Description: Risk Management:
The technical design of the project is straightforward and is based on prior experience in
Ningxia. Project activities will be concentrated in a small number of counties in Ningxia
and project sites have been identified. The models for desertification control and rehabilitation are tested.
The Project Leading Group and the RPMO will monitor implementation closely. Regular Bank supervision will monitor
implementation closely and identify any need for design changes or adjustment.
Resp: Bank Stage: Implementation Due Date: 31-Mar-2018 Status: Not Yet Due
Social and Environmental Rating Low
Description: Risk Management:
Environmental: Negative impacts may occur only, if the project is not properly
implemented, for example, because of selection of unsuitable plantation models and species, insufficient consideration of hydrological aspects of vegetation establishment,
poor site management, uncontrolled use of pesticides.
Social: Hill closures will reinforce the Government‘s general grazing ban. The resulting
access restrictions may affect 24 villages and 5 forestry farms.
Environmental:
Project sites have been carefully screened for maximum positive environmental impact in strategic locations. Possibly negative impacts of temporary nature will be managed through the implementation of the Environmental Protection Guidelines, Environmental
Monitoring Plan, and Pest Management Plan.
Social: The RPMO and the Bank team will carefully supervise: (a) the implementation of the Process Framework developed as part of the
Social Assessment and consultation process; and (b) implementation of compensatory measures under sub-component 1(c).
Resp: Client Stage: Implementation Due Date: 31-Mar-2018 Status: Not Yet Due
Program and Donor Rating Low
Description: Risk Management:
The project is free-standing and does not involve other donor or government activities.
The project can benefit from coordination with other ongoing programs.
The task team will liaise with Ningxia and other donors active in Ningxia on related activities during regular supervision.
Resp: Bank Stage: Implementation Due Date: 31-Mar-2018 Status: Not Yet Due
Delivery Monitoring and Sustainability Rating Moderate
Description: Risk Management:
Underdeveloped skills in project management and, in particular, limited experience in
procurement and contract management.
Input-output monitoring is based on standard government procedures and impact monitoring has been outsourced to the Ningxia Forestry Design and Planning Institute for
integration into an existing government M&E program.
Institutional and technical capacity to maintain project investments is well developed and
government programs are sufficiently funded to help maintain project outcomes.
Continuous training on procurement and financial management will be carried out. The County PMOs will recruit procurement agents
to assist procurement and contract management during the initial implementation phase. During the first year of implementation, all first civil works contracts regardless of contract value will be subjected to the Bank‘s prior review.
Resp: Bank Stage: Implementation Due Date: 31-Mar-2018 Status: Not Yet Due
Overall Risk
Preparation Risk Rating: Moderate Implementation Risk Rating: Moderate
Description:
Overall project management capacity was considered relatively weak at PCN stage. Capacity gaps and the inexperience with the Bank‘s fiduciary policies and procedures were to be taken into consideration by simplifying the
project design, training, and the development of clear manuals and procedures.
34
Annex 5: Implementation Support Plan
Strategy and approach
1. Weak implementation capacity of the RPMO and the PMOs has been identified as the
key risk to implementation. Bank implementation support will focus on assisting the client in
strengthening implementation capacity, particularly in financial management and procurement,
immediately following project start-up. Frequent supervision early on during the first half of the
implementation period is expected to effectively assist the client to be in compliance with Bank
FM and procurement policies and procedures. In addition, Bank support will focus on building
capacity of the client through ensuring that the required training and capacity building measures
in financial management and procurement are being implemented quickly and will be continued
if needed.
2. Procurement capacity building will include: (a) the preparation and implementation of a
procurement training plan by the RPMO to train all procurement staff during project
implementation (including refresher training); and (b) the issuance of the Procurement Manual
by the RPMO to standardize project procurement procedures and provide guidance to project
procurement staff. The Bank team will ensure that procurement training is implemented as
planned and PMOs are required to attend Bank-organized procurement training.
3. In FM, the Bank team will supervise the implementation of the FM training plan and pay
specific attention to the timely provision of the required counterpart funds. The FM specialist
will ensure that counterpart funds committed by the Regional level as well as county, district and
city governments will be included in annual sectoral budgets. A budget variance analysis will be
conducted semi-annually. If needed, necessary remedial actions will be taken to make sure that
project implementation can proceed as planned. Standard provision on interim financial
reporting and external audit apply and their compliance will be monitored.
4. Specific technical expertise on desertification control, M&E, and economic aspects will
be mobilized during regular semi-annually supervision missions. The challenges associated with
the timely planning and careful phasing of activities to match the seasonality of the plantation
program will be monitored by the Bank‘s technical specialists during routine supervision. The
team‘s environmental specialist will monitor compliance with environmental safeguards and
adherence to the provisions of the Environmental Management Guidelines and Pest Management
Plan as well as Environmental Monitoring Program. The Bank‘s social specialist will pay
particular attention to the implementation of the Process Framework under component 1 (c) and
supervise PMO performance in monitoring livelihood impacts from access restrictions and
corresponding compensatory measures and benefits to local communities. Field visits are
required on a semi-annual basis. The Bank‘s task team leader and most of the team members are
based in Beijing and can provide timely and on-demand implementation support to the client
when needed.
5. An overview of the focus and timing of Bank support is presented in Table 1 and the
required skill mix in Table 2.
35
Table 1: Supervision input requirements.
Time Focus Skills Needed
Resource
Estimate
(annually, in
staff weeks)
First twelve
months
Task and team leadership TTL 6 SW
Technical support to overall
project implementation
Technical Specialist/
Economist 6 SW
Process Framework
Implementation
Social Specialist 2 SW
EMP Implementation Environmental Specialist 1 SW
Financial Management FM specialist 2 SW
Procurement Procurement Specialist 2 SW
12-48 months Task and team leadership TTL 10 SW
Technical support to overall
project implementation
Technical Specialist/
Economist 20 SW
Process Framework
Implementation
Social Specialist 8 SW
EMP Implementation Environmental Specialist 4 SW
Financial Management FM specialist 6 SW
Procurement Procurement Specialist 8 SW
Table 2: Skill Mix
Skills Needed Number of Staff
Weeks
Number of
Trips Remark
TTL/ Rangeland Management/
Environment/ Desertification
Control
6 SWs annually 2 Bank staff
Agriculture economics 8 SWs annually 2 Bank staff / Consultants
Procurement 2 SWs annually 1-2 Country-office based
Social Development 2 SWs annually 1-2 Country-office based
Environmental Management 1 SW annually 1 Country-office based
Financial Management 2 SWs annually 1-2 Country-office based
NEI MONGOL
SHAANXI
GANSU
NINGXIA
GANSU
Yanchianchi
CaijialiangCaijialiang
QingtongxiaQingtongxia
R.(H
uang
H
e)
Yellow
ToWuhai
ToWuqi
ToQinyang
ToQinyang
ToJingchuan
ToJingning
ToLanzhou
ToLanzhou
Helan
Yanchi
Haiyuan
Xiji
Longde
Jingyuan
Pengyang
Zhongning
Taoshankou
Machenghe
Guojiagou
MaojiagouYanchuanzi
Xiasi
Yingpanshui
Tongxin
YongningLinhe
Lingwu
Qingtongxia
Taole
Pingluo
Shizuishan
QingtongxiaQingtongxia((YYellow R. Bridge)ellow R. Bridge) Wanglejing
Fengjigou
Hui'anpu
Xingren Datanchuan
Xinzhuangi
Taiyangshan
Wanquanliang
Niumaojing
Gaoshawo
CaijialiangHuiminxiangGuyaozi
Qingtongxia(Yellow R. Bridge)
Xinqiao
Huinong Qu
Guyuan
Wuzhong
Yinchuan
YinchuanHedongAirport
106°
105°
107°
39°
38°
37°
36°
107°106°105°
36°
37°
38°
39°
IBRD 39020
JAN
UA
RY 2012
0 10 20 30 40 50
KILOMETERS
PROJECT AREAS
EXPRESSWAYS
NATIONAL ROADS
RAILROADS
AIRPORT
GREAT WALL
RIVERS
CITIES AND TOWNS
COUNTY CAPITALS
PREFECTURE CAPITALS
PROVINCE CAPITAL
COUNTY BOUNDARIES
PREFECTURE BOUNDARIES
PROVINCE BOUNDARIES
CHINANINGXIA
DESERTIFICATION CONTROLAND
ECOLOGICAL PROTECTIONPROJECT
This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries.
BEIJING
HEILONGJIANG
JILIN
LIAONING
NEI MONGOL
HEBEI
BEIJING
TIANJIN
SHANXI
SHAANXIGANSU
QINGHAI
XINJIANG
XIZANG
SHANDONG
HENANANHUI
JIANGSU
ZHEJIANG
SHANGHAI
SICHUAN
CHO
NGQIN
G HUBEI
GUIZHOU
HUNANJIANGXI
FUJIAN
GUANGXI GUANGDONGTAIWAN
HAINAN
YUNNAN
HONG KONGMACAO
RUSSIANFEDERATION
MONGOLIA
JAPAN
PHILIPPINES
VIETNAMMYANMAR
LAO
REP. OFKOREA
D.P.R. OFKOREA
P.D.R.
Sea ofJapan
YellowSea
EastChinaSea
PACIFICOCEAN
National Capital
ProvinceBoundaries
InternationalBoundaries
NINGXIA
![AIIMS 2015 [Evening].pdf · Find the volume of Mg24 nucleus (in m3) (1) 1.73 x (2) 1.73 x 10-45 m3 (3) 1.73 x 10-15 (4) 1.73 x 10-13 In process of nuclear fission of I g uranium,](https://img.dokumen.tips/doc/110x75/5e376e4416d5f7238068a09c/aiims-2015-eveningpdf-find-the-volume-of-mg24-nucleus-in-m3-1-173-x-2.jpg)
