INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

STAFF APPRAISAL REPORT

China: Songliao Plain Agricultural Development Project

June 16, 1994

The above-captioned Staff Appraisal Report for China: Songliao

Plain Agricultural Development Project is a revised version of the report

prepared following the approval of the Project by the Executive Directors

of the Bank and does not include information deemed confidential by the

Government of the People's Republic of China.

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

I

Document ofThe World Bank

FOR OFFICIAL USE ONLY

/3 77P-CAII-F, ~~~11`7?5= CHA

STAFIF APPRAISAL REPORT

CHINA

SONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

February 1, 1994

IN ACCORDANCE WTH THE WORLD BAK'SPOUCY D. OISCLOSURE OF INFORMATION

TH16 DOIC_WEHT IS AVAILABLE TO THE PUBL.

Agriculture Operations Division / 7China and Mongolia DepartmentEast Aia and Pacific Regional Office

eY

CURRENCY EQUIVALENTS I/(January 1, 1994)

Currency Unit - Yuan (Y)$1.00 = Y 8.7

Y 1.00 - $0.115

FISCAL YEAR

January 1 - December 31

WIGHTS AND MEASURE

I meter (m) 3.28 feet (ft)1 cubic meter (m3) = 35.31 cubic feetI millimeter (mm) = 0.04 inch

1 kilometer (kIn) = 0.62 miles1 square kdlometer (kmi2) = 100 hectares

1 hectare (ha) 15 muI ton (t) 1,000 kg

= 2,205 pounds1 kilogram (kg) = 2.2 pounds1 kilovolt OMV) = 1,000 volts

I ldlowatt (W) = 1,000 watts

1/ This proect W appraisd m lune/uly 1993 whm the excane ate was $1 - Y 5.7. AUl costs andfinncing hve bee raculaed gt the ate of $1 - Y 8.7, effective Januay 1, 1994. Economic and Afinncial lysis baed on origal pprisal parmiete. he devaluaton would imrove economicad finaal ruts to some extnL,

FOR OFFICLAL USE ONLY

ABBREVIATIONS AND ACRONYMS

ABC - Agricultural Bank of ChinaAI - Ardficial InseminationBOD - Biochemical Oxygen DemandBOF - Bureau of FinanceCATEC - County Agrotechnical Extension CenterCIS - Commonwealth of Independent StatesDCA - Development Credit AgreementERR - Economic Rate of ReturnFAO/CP - Food and Agriculturl Organization/Cooperative ProgramFRR - Financial Rate of ReturnGDP - Gross Domestic ProductGOC - Government of ChinaGVAO - Gross Value of Agricultural OutputICB - Internaitonal Competitive BiddingDA - International Development AssociationIPM - Integrated Pest ManagementITC - International Tendering CompanyLCB - Local Competitive BiddingLN - Liquid NitrogenMOF - Ministry of FinanceNCPG - North China Power GridNECN - Northeast China NetworkO&M - Operation and MaintenancePCBC - People's Construction Bank of ChinaPEPB - Provincial Environmental Protection BureauPLG - Project Leading GroupPMO - Project Management OfficePO - Project OfficePPMO - Provincial Project Management Officeppm - Parts per MillionSMC - Supply and Marketing CooperativesSOE - Statement of ExpenditureTATES - Township Agrotechnical Extension StationWCB - Water Consevancy Bureau

This document has a restricted distribution and may be used by recipients only in the performanceor their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

CBINA

SONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Credit and Project Summary

Borrower: People's Republic of China

Beneficiaries: Liaoning and Jilin Provinces

Amount: SDR 148.5 million ($205 million equivalent)

Terms: Standard, with 35 years' maturity

Objectives andDescription: The major objective of the project is to increase agricultural

production, farm-family incomes, rural employment and women'sparticipation by increasing the productivity and marketability ofcrop, fruit, livestock and aquatic products. The project wouldincrease hectaae of productive lands by (a) expanding irrigationand drainage ficilities; (b) developing unutilized wastelands,including introduction of soil and water conservation; and (c)developing intertidal areas for aquaculture production. It would alsodiversify crop production from com to rice and wheat, and invest inlivestock production and agroprocessig activities to make use ofsurplus corn and other by-products.

Benefits andRisks: The project would directly increase incomes, employment and

living standards of some 518,000 farm families. At fulldevelopment, the project would generate incremental annualproduction of 177,000 tons of grains (paddy, wheat and soyabeans)valued at $30.5 million (after adjusting for associated reduction incorn); 187,600 tons of fruits valued at $56.1 million; beef, mutton,rabbit and goose meat, and deer antlers together, including the valueof processing, valued at $37.5 million; shrimp, shellfish and crabsproducts valued at $24 million; and the value added of $40.2 millionper year from agroprocessing plants. The project's incrementalannual value of production would be $188.3 million. The averagefarm income would be tripled or quadrupled. The economic rate ofreturn for the total project is estimated at 32 percent. Significantemployment, including for women, would be created by allcomponents. There are few risks, which have been satisfactorilyminimized.

Estimated Cost: Loa Eoreign IQ1I(S million)

Irfigation and drainage 16.9 12.5 29.4Field crop development 4.7 16.8 21.5Orchard development 17.9 12.4 30.3Soil and water conservation 2.7 1.3 4.0Livestock development 39.3 19.9 59.2Livestock processing 15.9 16.2 32.1Agroprocessing 37.0 69.5 106.5Aquaculture development 11.5 8.9 20.4Project management 1.7 3.6 5.3

Base Costs La 147 6 IAL 308 7

Physical contingencies 7.3 14.2 21.5Price contingencies 40.6 11.5 52.1

Total Proect Costs l9 S 18 81,

Pbm:

MA 18.2 186.8 205.0Provincial, prefecture, municipal

and county governments 62.6 0.0 62.6Commercial banks 57.8 0.0 57.8Enterpriss and farmers 56.9 0.0 56.9

Toul 1295 16 382.

Estimated Disbusements:BRD/IDA FY 1995 1996 19972k 29 2Q1

($million)

Annual 30 42 41 41 24 19 8Cumulative 30 72 113 154 178 197 205

Poverty Category: Not applicable

Economic Rateof Return: Crops 42 percent, Orchards 47 percnt, Livestock 27 percent,

Aquaculture 26 percent, Agroindustry 23 percent, Livestockprocsing 27 percent, Overall Weighted Project 32 percent.

La Project is exempt from taxes and duties.

CONTENTS

1 Badckound .................................... 1

A. Introduction ................................... 1B. Agricultural Seo ............................... 1C. Livestock Subsector .............................. 2D. Fisheries Subsector .. 3E. Sectoml Objectives and BaI Lending. 4F. Agriculture in Liaoning and Jilin Provinces ................ 5G. Rural Incomes and Poverty ........................ . 7H. Project Formulation and Rationale ..................... 8

2 The Project Areas .. 9

A. Loction ........................... 9B. Climate, Topography and Soils ....................... 9C. Water Resources ................................ 10D. Water Avaiability and Water Balance ................... 11E. Population, Farm Size and Land Use ................... 12F. Preset Development ............................. 12G. Infrastucture .. 15H. Design Considerations ............ .. .............. 16I. Women in Agriculturl Development .................... 16

3 TheProject ..................................... 17

A. Project Objectives .............. .. ............... 17B. Project Description .............................. 17C. Detailed Features ............................... 18D. Status of Preparation ....... ........ .............. 36E. Implementation Schedule ........................... 36F. Cost Estimates ................................. 37

This report is based on the findings of an appraisal mission in June/July 1993. Membersof the mission team included R. Jaisaard (Mission Leader), W. P. Ting, U. El-Hanbali,C. De Haan, M. Sharma (IDA), D. Gue, A. Kaelin and G. Franzen (Consultants).Another involved in the preappraisal was Mr. A. Nell. Peer reviewers comprisedMessrs. De Haan (AGRTN), Pritchard (SA2AG), Ochs (AGRNR), Chobanian, Zweig(ASTEN). The Division Chief is Joseph Goldberg and the acting Department Director isZafer Ecevit.

- iv -

G. Financing .................................... 37H. Procurement .................................. 38I. Disbursement ................. ................. 40J. Accounts and Audits ...... ......... .............. 41K. Environmental Impacts ............ .. .............. 42

4 Organization and Management ........................ 44

A. Project Organization .............................. 44B. management .................................. 45C. Environmental Monitoring and Management ............... 45D. Financial Management ............................ 46E. Management of Production Activities ................... 47F. Operation and Maintenance ......................... 48G. Project Launch Workshop .. 48H. Monitoring, Evaluation and R.or.ing...........48

5 Production, Markets and Prices ........................ 50

A. Production ................... ................. 50B. Markets ..................................... 52C. Prices ...................................... 54

6 Benefits, Justification and Risks ....................... 55

A. Benefits ..................................... 55B. Employment and Incomes ................ 55C. Employment Opportunities for Women ....... .. ......... 56D. Cost Recovery ................................. 56E. Financia and Economic Analyses ..................... 57F. Risks ....................................... 58

7 Agreements and Recommendations. 59

TAmLS IN TE:x

3.1 Project Cost Summary .373.2 Procurement Profile .39

Asm

1. Basic Provincial and Project Area Statistics ................ 62

Water Supply and DemandBasic Data for Each ComponentResearch and Training Programs

2. Project Cost Summary ............................ 85

Summary Accounts Cost SummarySummary Accounts by Project ComponentProject Component by YearProcurement of Machinery, Equipment and MaterialEstimated Disbursement Schedule

3. Cropped Areas, Yield and Production ................... 99Crop BudgetsFarm ModelsLivestockAgroindustriesLivestock ProcessingRent and Cost RecoveryMain Conversion Factors UsedBorder Prices for Principal Products and InputsFinancial AnalysisEconomic AnalysisKey Monitoring Indicators

4. Supeision Plan .132

5. Selected Documents and Data Available in the Project Files 133

CHART

1. Organization .................................. 136

2. Supply and Demand .............................. 137

3. Implementation Schedule ........................... 139

4. Procurement Schedule ............................. 144

IFIGURES

1. Cropping Calendar of Main Annual Crops ................ 147

MB24

IBRD 24858IBRD 24859

1. BACKGROUND

A. INIRODUCIION

1.1 The Government of China (GOC) has requested International DevelopmentAssociation (IDA) assistance in financing an integrated agricultural development projectin Liaoning and finm Provinces. The project would cover 40 counties of 13 prefecturesand municipalities. The main objectives of the project would be to increase agriculturalproduction, farmers' incomes and rual employment. The proposed project emphasizes theeffective use of existing resources to increase agricultural production and processing inresponse to market demands. The project would increase the hectaage of productive landsby (a) expanding irrigation and drainage facilities, (b) developing unutilized wastelands,and (c) developing intertidal areas for aquaculture production. in the course of developinghilly wasteland, programs of soil and water conservation are introduced. The projectwould also diversify crop production away from com to rice and wheat and would investin livestock production and agroprocessing activities to make use of surplus corn andby-products. It would include components where women are the primary beneficiaries.The project was identified by a World Bank mission in November 1991 and prepared byUnited Nations Food and Agricultural Organization/Cooperative Program (FAO/CP)missions in June and November 1992. The preappraisal and appraisal missions visited theproject areas in March/April and June/July 1993, respectively.

B. AGCULTnuRAL SEcIOR

1.2 Agriculture in China-including crops, livestock, forestry and fisheries-

provides sustenance for about 1.2 billion people; it is an important source of income forsome 200 million farm families and accounts for about 30 percent of the country's grossdomestic product (GDP). Only about 137 million hecures (ha) of China's land area of960 million ha are arable. Farming systems are therefore intensive, with heavy inputs oflabor, fertilizer, small machinery and water. Nearly half of the cropped area is irrigated.Foodgrains occupy about 70 percent of total cropland and account for about one third ofthe value of agricultural output. Intensive farming has enabled China to meet the basicfood requirements of its population, about 22 percent of the world's total, with less than11 percent of the world's arable land, and to produce an increasingly sophisticated mix of

cash and commercial crops.

1.3 China's sustained rural reform program has revitalized the agricultural sectorand provided impressive growth and structural change through the introduction of the

production responsibility system, increased producer prices and an enlarged role for market

forces. The gross value of agricultural output (GVAO) increased by 83 pecent in real

terms during the 1978-91 period (6 percent per year), substntially faster than during the

-2 -

previous 25-year period (3 percent per year). While significant growth in grain productionwas achieved in the early part of the period (eaking at 407 millon tons in 1984),stagnating grain production was the Government's central agricultural concern during thelate 1980s, with production ranging between 379-402 million tons during the 1985-88period as farmers substituted other crops for grain. Major efforts were made to increasegrain production and recently production appears to have risen to a new plateau, with 446,435 and 440 million tons in 1990-92, respectively.

1.4 The Government's strategy to increase grain production included diversemeasures, such as increasing state investment in agriculture, mainly in irrigationrehabilitation and expanson, and introducing fundamental reforms in grain procurement,distribution, prices and subsidies. These reforms fixed provincial grain procurementquotas at substantially reduced levels, with steadily increasing market-based negotiatedprices; increased grain quota procurement prices, so that wheat and corn farm-gate pricesnow approach world levels; converted most the pricing of official interprovincial grainshipments from quota to negotiated prices; and in 1991 and 1992, for the first time in30 years, substantially increased urban ration grain and edible oil prices in real terms(132 percent to 160 percent). Recent years have also seen the establishment of fledglinggrain commodity exchanges for all major grains in various Chinese cities (e.g.,Zhengzhou, Changchun, Wuhan, Harbin, and Changsha).

1.5 In the context of the preparation of the Bank Group-financed GrainDistribution and Marketing Project (Credit 2518/Loan 3624-CHA), the reform programto date, involving the steady elimination of grain consumption subsidies, the substantialreduction of grain procurement quotas, the opening of the internal grain trade to allinterested units and individuals, the commecializtion of grain wholesaling and retailingenterprises, and the establishment of a futures market in grain, all aim eventually atmarket-determined pricing of virtually all grain in China. These changes have altered thegrain balance from shortage to surplus in several regions of the country, including theproposed project area in respect of com, and this has determined the design of theproposed project.

C. LFso SuBscOR

1.6 The livestock subsector in China has grown rapidly since the reforms of1978 and its share of agricultural GNP has increased from 14 percent in 1980 to 26 percentin 1991. This change reflects the incentives provided by liberalized livestock productionand marketing regulation inherent in the rural reforms and specific government incentivepolicies. From 1988 to 1991, production of beef, mutton and poultry increased annuallyby approximately an average of 13 percent and that of pork by 6 percent. Similar averageannual increments occurred with eggs (9 percent) and milk (7 percent). Beef productionexpanded due to a rising offtame rate and expanding export markets. The inr in sheepproduction was due to pasture improvement and increased cropflivestock integration intraditional cropping zones. Poultry production increased rapidly due to strong domesticdemand and the development of export markets.

-3-

1.7 China's per capita meat consumption increased from 9 kilograms (kg) in1978 to 21 kg in 1991. The major meat consumed is pork (17 kg per capita in 1991).Consumption of beef, mutton and poultry is still under 2 kg per capita. This level of meatconsumption is still among the lowest in the world. Per-capita milk consumption of only4 kg is also extremely low, although it is much higher in the larger cities. While low, thisdomestic demand for livestock products is increasing rapidly along with disposableincomes. Consumption patterns for livestock products are also changing in favor of leanermeat and dairy products, especially in urban areas. Wool consumption has also increasedsubstantially, and China is now a major importer of raw wool.

D. FsHRES SuBsEcroR

1.8 China has a mainland coastline of around 18,000 kilometers (kIn), and itsmany islands provide an additional 12,000 to 14,000 km. Geographically, there are fourprincipal marine production areas, namely the South China Sea, the East China Sea, theYellow Sea and the Bo Sea. The continental shelf down to 200 meters is around1.5 million kIa2, and the inshore areas and mudflats suitable for coastal aquaculture areestimated to cover 1.3 million ha, of which 300,000 ha are currently used for commercialproduction. China's marine catch is harvested by trawling and seining in coastal watersgenerally down to 80 meters, and these areas are currently overexploited. Consequently,China has increased its efforts to develop a distant-water fisheries, through joint venturesand expanding its wholly owned fleet. In recent years, rapid expansion in cultured marinespecies has taken place, involving new propagation technology. Shrimp (mostly Peneausorientalis), scallops, abalone, hard clams, short-neck clams, sea cucumbers and musselsare the predominant species cultured. Inland water surfaces in China cover approximately17 million ha, composed of rivers (50 percent), natural lakes (30 percent), reservoirs(12 percent) and ponds (8 percent). It is estimated that around 5 million ha are suitablefor aquaculture. Another 10 million ha of irrigated paddy fields, where aquaculture couldalso be practiced, are also available.

1.9 The fisheries subsector, including culture and capture production from boththe marine and freshwater sources, accounts for some 6 percent of GVAO. Total fishproduction in China in 1991 is estimated at 13.5 million tons, of which culture fisheriesaccounted for just over 6.5 million tons (1.9 million tons from mariculture and 4.6 milliontons from freshwater aquaculture). Between 1980 and 1991, national fish productionincreased at an average annual rate of 10.6 percent. This increase was mainly due to therapid growth of marine and freshwater culture, which in turn was the result ofimplementing a revised fisheries development policy, characterized by liberalizing themarket for fish, encouraging the development of aquaculture, and conserving offshoremarine fish resources. China is now the largest producer of freshwater cultured fish andshrimp, the latter accounting for 35 percent of the world production. China is also thelargest producer in the world of fish and other seafood at 13.5 million tons in 1991. Thistotal grew 1.1 million tons in one year from 12.3 million tons in 1990.

-4 -

E. SECRAL OBjEcnWE AND BANK LENING

1.10 The Government's long-term objectives for the agricultural sector are toincrease production to meet the requirements created by population and income growth andto increase income and employment in rural areas. Given China's shortage of arable land(0.1 ha per capita), development planners have focused on the need to increase theproductivity of presently cropped areas and to efficiently develop the few remaining areasof unutilized land. Per capita production and total value-added in the crop subsector areto be raised primarily by increasing the yield and quality of food, feed, orchard, andindustrial crops and also by increasing the volume of agroprocessing.

1.11 The Government's objectives for livestock and aquaculture development areto increase production for domestic consumption (and thereby improve nutrition), increaseexports and earn foreign exchange, and provide an additional source of income for therural population. High-value livestock products (meat and exotic products) and aquaticproducts (shrimp, scallop, and shellfish) are being targeted for export markets. Thelivestock development strategy emphasizes the introduction of superior breeding stock,better-quality feed, industrial (stall-fed) management systems, pasture improvement,additional processing plants, and improved veterinary and breeding services. The aquaticdevelopment strategy emphasizes establishment of aquaculture systems on land unsuitablefor crop cultivation, such as freshwater culture in swamps, floodplains, marshes and poorlydrained land and marine culture in coastal lowlands, shoals and mudflats.

1.12 Bank Group agriculturl lending to date has comprised 33 operationsamounting to $4.4 billion and has covered a wide spectrum of geographic areas andsubsectors, with overall foci on land development, irrigation and drinage, and floodcontrol (seven projects), upgrading of agricultural support services including agriculturlresearch, education, credit and seed improvement (eight projects), development ofspecialized subsectors including rubber, forestry, fruit and fisheries (nine projects), andarea development (seven projects). It is designed to support the Government's efforts toincrease and diversify agricultural production through more efficient use of land, water,capital and labor resources and through the improvement of support services such as credit,research and agricultural education. Since 1987, the Bank Group has suppted a seriesof provincial development projects in which an area development approach has beenapplied. The projects were designed for poverty alleviation and also to assist theGovernment in its ongoing reform process. The Rural Sector Adjustment Loan(Credit 1932-CHA/Loan 2967-CHA), which was approved during 1988, contributed to thearticulation of the overall reform process, and involved the Bank Group in increasinglyintensive policy dialogue with government counterparts in the agricultural, marketing andpoverty alleviation areas, sustained through several major sector studies (e.g., on grain,poverty alleviation, animal feed, and management of the Yellow River) and projectformulation exercises.

1.13 Implementation of most ongoing Bank Group-financed projects in theagriculture sector is on schedule. Experience in previous Bank agricultural projects inChina is that physical works have been completed on time or ahead of schedule.

-5-

Disbursements for agricultural projects, in fact, usually outpace those in other sectors.Notable features of all the projects are the high standard of project management, the activeparticipation of farmers and the effective collaboration of government authorities at alllevels. Twelve projects have been completed: North China Plain, Heilongjiang LandReclaation, First and Second Rural Credit Projects, Seeds, Rubber Development, SecondAgricultural Research, Red Soils, Rural Sector Adjustment, Pishihang, FreshwaterFisheries and Forestry. The completion reports for these projects indicate thatimplementation was successful, that economic rates of return reached or exceeded appraisalestimates, and that the technology used for land development and drainage was sound andappropriate for wider application.

1.14 Completed projects similar to the one proposed have indicated the mosteffective approaches to corrting waterlogging and salinity problems as well as theorganizational and management requirements of integrated rural development opeations.In light of the lessens learned, the design of this project incorporates the followingfeatures: (a) use of proven irnigation and drainage technologies to correct waterloggingand soil salinity; (b) carefully balanced, joint use of surface and groundwater and alfalfaplanting for salinity control; (c) rational water resource management and effectiveoperation and maintenance of facilities to ensure susuinability; (d) supply of sufficientinputs to maintain the agricultural productivity of reclaimed areas; (e) provision oftechnical experts to assist in the design and management of agroprocessing facilities; and(f) effective coordination of organization units at all levels.

1.15 The World Bank has already been involved in the Liaoning and Jilinagricultural sectors through three sectoral projects-Seeds Project, Fourth Rural CreditProject and the Agricultural Support Services Project. The Seeds Project was aimed atstrengthening production, processing, storage and distribution of certified seeds. TheFourth Rural Credit Project finances investments by farmers, collectives and enterprisesin crops, livestock, fisheries and agroprocessing; and promotes efficiency of rural financialintermediation through introduction of sound, market-oriented policies and developmentof the main institutions concerned with rural savings mobilization and lending, mainly theAgricultural Bank of China. Similarly, the Agricultural Support Services Project aims atstrengthening support services in several provinces including Jiln and Liaoning.

F. AGRCuluRE IN ONING A JiN PROVINCES

Liaong

1.16 Liaoning is located in the southern part of northeast China (Map IBRD24858), covering an area of 146,000 kam2 with 39 million population. Agriculturecontributes 12 percent of provincial GDP and employs 52 percent of the total population.The provincial GVAO in 1991 was Y 30.2 billion compared to Y 7.4 billion in 1980(Y 14.5 billion in 1991 prices). Its average annual growth rate over the period was6.7 percent in real terms. Within agriculture, crop production contributed 52 percent,followed by livestock (29 percent), fisheries (11 percent), sideline activities (6 percent) andforestry (2 percent). Since 1978, sectoral growth has been fastest in fisheries (24 percent),

-6 -

followed by livestock (22 percent), sideline production (18 percent), forestry (16 percent)and crop production (10 percent).

1.17 Cultivated land occupies about 3.6 million ha of the provincial land area,with 30 percent under full or pardal irrigation. Nearly 3.1 million ha were sown tofoodgrains, primarily corn and paddy. Per-capita gmain production was about 380 kg.Soybeans are the second most important crop next to grains, followed by other oil crops,fruit and vegetables. The yields of corn and paddy were higher than the national average.Total production of corn, paddy and wheat were 8.5, 4.0 and 0.5 million tons,respectively, in 1991. Grain production increased by 2.6 percent per year between 1980and 1991 (despite a 8 percent reduction in cultivated land). Fruit production increasedfrom 806,000 tons in 1986 to 1.0 million tons in 1991 (an increase of 25 percent). Theseincreases were possible due to the availability and use of improved varieties and modernfarm inputs.

1.18 The livestock subsector doubled its contribution to the GVAO from14 percent in 1978 to 29 percent in 1991. Between 1980 and 1991, total meat production(95 percet pork) tripled from 303,000 tons to 1 million tons. Annual per-capitaconsumption of meat in the province (12 kg) is considerably lower than the nationalaverage of 21 kg per capita. The fisheries subsector has tripled its contribution to GVAOfrom 4 percent in 1978 to 11 percent in 1991. Production, comprising capture and cultureof aquatic products, reached 1.1 million tons in 1991, an increase of 70 percent over 1986production. These increases are mainly attributable to increased production of shellfish,shrimp and crab. Annual average consumption of aquatic products averages about 2.4 kgper capita.

1.19 Crop production is mainly carried out by households with small per-capitalandholding (0.1 ha). Farming has to be very intensive, dependent on the availability ofinputs and water. Livestock is raised mainly by individual households, with at least oneor two pigs per household fed on crop residues. Along with poultry, they are raisedmainly by women. As Liaoning has limited grain and oilseed for livestock feed, it suffersfrom a lack of quality feed. This situation highlights the need for continued promotion ofcrop residue-based ruminant production systems in the province. Shrimp and shelfish areproduced under contract to households. The province has an enormous potential forexpanding and improving aquatic production, as large suitable areas for aquaculture remainundeveloped. The main constraints are lack of funds and supporting infrastructureincluding hatcheries, processing facilities and cold storage.

Jilin

1.20 Jun is located in the central part of northeast China, north of iaoning(Map IBRD 24858), covering an area of 187,000 kIn2, with population of 25 million, ofwhich 60 percent are in agriculture. Unlike Liaoning, the agricultural sector in Jilin is stillthe basis for its economy, accounting for nearly 57 percent of 1991 provincial GDP. TheGVAO in 1991 was Y 18.8 billion compared to Y 6 billion in 1980 (Y 12 billion in 1991yuan). Its real average annual growth rte was 4.2 percent over the period. Within

-7 -

agriculture, crops contributed 69 percent, followed by livestock (24 percent), forestry(2 percent), fisheries (2 percent) and sideline activities (3 percent). Crop productionincreased by 18 percent per year between 1985 and 1991, with grain availability of 740 kgper capita.

1.21 In 1991, 7 prcent of its 4.1 million ha of cultivated area was sown to graincrops, 8 percent to cash crops and 5 percent to other crops. Corn accounted for 56 percentof the total sown area and 64 percent of the grain area. Other grain crops are paddy,wheat, soybeans, sorghum and millet; cash crops are oilseeds, sugar beet and flax; andother crops are fruit and vegetables. Total production of corn, paddy, soybeans and wheatwas 14.0, 3.0, 0.7 and 0.4 million tons, respectively. Flax is grown on a small area(3,667 ha), giving an output of 6,100 tons.

1.22 Jllin is the largest corn-surplus area in China. It is estimated that 5 of the14 million tons produced went for farmers' use as food, seed and livestock feed and thegovernment quota, leaving 9 million as surplus for industrial use within the province andexport to other provinces or abroad. However, in 1991, only about 2 million tons of corn(or 22 percent of the surplus) were industrially utilized (for feed 34 percent, food products31 percent, alcoholic beverages 26 percent and starch 9 percent). The eighth five-yearplan envisages Jiln as becoming more active in com industry development. Emphasis isplaced on com wet-milling, com starch, alcoholic beverages and feed industries. In themeantime, the province is facing problems of storage and transportation, which are beingpartally tackled through the Grain Distribution and Marketing Project.

1.23 Jilin is rich in forest resources, with a forested area of 8.8 million ha or47 percent of the province, located mainly in the mountainous area in the east and south.In this area, the province grows and processes ginseng, Chinese herbs and other forestryproducts for export and the domestic market. Fruit crops are traditionally grown in thehilly regions of the south and southeastern part-mainly pinguoli, an apple-pear varietyunique to Jilin.

G. RURAL INcOME AD PovERTY

1.24 The rural agricultural population of Jilin and Liaoning is stil poor. In Jilin,average annual per capita farm income in the project counties was Y 442 in 1990, about55 percent of the provincial average of Y 803. Eleven counties in the province aredesignated as poor counties, six by the national govemment and five by the province. InLiaoning, 1991 average per capita income of 26 project counties was Y 808, about90 percent of the provincial average of Y 896 (Anne 1, Table 3). The province has 15counties designated officially poor; three were so designated by the national governmentand 12 by the province.

1.25 Rural poverty can be attributed to three main conditions: (a) poorgeographic location in the mountainous region of the eastern and western parts of Liaoningand the eastern part of Kerqin desert of the Inner Mongolia Autonomous Region; (b) poornatural resource endowments with significant salinity, alkalinity, sandstorms, flooding and

-8 -

waterlogging; (c) poor infrastructure, especially in counties without railway connections;(d) poor communications, which limit farmers' opportunities to learn about newtechnologies and markets; and (e) poorly developed commercial infrastructure, whichdiminish farmers' production incentives.

1.26 Reducing poverty is an increasingly important development goal of thegovernment at all levels. In pursuit of this, the national government has implemented anumber of programs, including construction of roads, bridges and irrigation facilities,development of diversified production activities and provision of training and supportingfacilities. Local govemments have provided grant funds to support investment by poorfarmers, vocational training in specific fields and production incentives, such as taxholidays of up to five years. However, these programs are limited in scope due to ashortage of funds. One of the goals of the national government's eighth five-year plan isto increase per capita income to Y 800 in all poor counties by 1995 and to Y 1,300 by theyear 2000. Development proposals include investment in crop and livestock production,agopocesing and promotion of tertiary industry.

H. PRoJEcr FORmuLAION AND RATnoNALz

1.27 The proposed prqject is designed to address the key constraints limitingagricultural productivity in the project areas: soil salinity and waterlogging, wind- andsandstorm damage, shortage and poor quality of irrigation water, inadequate cropdiversification, poor inputs and feed quality, limited availability of extension services andweak linkages between production, processing and marketing activities. The project designdraws on IDA's extensive experience in integrated rural development projects in China.The lessons from this experience will help the project address major constraints. IDAinvolvement would promote the efficient use of limited resources, introduce appropriatenew production and processing technologies, and promote better planning and managementto respond to market demands. It would strengthen research and extension, supporttraining for farmers, researchers, extension agents and managers, and provide technicalassistance. It would also introduce environmental standards in the designs ofagroprocessing plants, develop monitoring systems and promote environmental protecdonpractices.

-9 -

2. THE PROJECT AREAS

A. LOCATION

2.1 The proposed project would be located in the Songliao plain, which lies incentral Liaoning and western Jin provinces, an area approximately 260 by 540 kin,covering 145,000 km2. The plain is named for two interlocking drainage basins, that ofthe Liao River which drains southward to the Bo Sea and that of the Songhua system whichdrains to the North. The project would cover 26 counties of 9 municipalities in Liaoningand 14 counties of 4 prefectures/municipalities in Jilin, and comprise 612 townships and5,904 villages. Project locations showing the subcomponents, are shown on IBRD MapNos. 24858 and 24859 and area statistics are given in Annex 1, Tables 1-3:

B. CLIME, ToPOGRAIy, AmD Som

2.2 Climate. The project area has a temperate zone monsoonal climate, windyand dry in spring, hot and rainy in summer, cool and frosty in autumn and cold and dryduring the long winter. In the Liaoning project area, the average temperature varies from-12°C in January to +25°C in July; there are 140 to 170 frost-free days annually; sunshineis 2,600-2,900 hours per year; and annual rainfall is 500-740 mm, with most of theprecipitation occurring in the July-to-September period. In the Jilin project area, theannual climatic data are: average temperature 4-6°C, frost-free days 125-150, sunshine1,300-1,600 hours, and annual rainfall is 410-590 mm, with most concentrated in the June-to-September period. For both provinces, winters are very cold with minimumtemperatures dropping to as low as -39°C. Maximum temperatures in the summer reachas high as +38°C. Average wind speed ranges from 3 to 6 m/s throughout the year butthere are about 50 days when winds exceed force 8. High winds, which occur during theApril-to-May period, can cause severe damage through sand erosion. Windbreaks havealready been planted on several thousand hectares, and more would be supported under theproject.

2.3 Topography. The project area is located in the alluvial plains of theSonghua and Liao Rivers and their tributaries. It is a large flat and generally fertile plain,but with large low-lying land areas that are prone to flooding. Waterlogging, surfacesalinity and alklinity are common, particularly since many areas have no natural extemaldrainage. Long, cold winters limit the growing season and frequent droughts dunng thecritical spring period frequently lead to crop failure.

2.4 Soils. The soils in the project area include brown forest, cinnamon,meadow, hydromorphic, marshy, saline, saline-alkaline and drift-sandy soils. The brownforest soils, which are acidic loams susceptible to erosion, are found in the upper hill

- 10-

regions. Fruit trees and ground cover crops are planned for these regions. Cinnamon soilsare found in the hilly areas of Fuxin municipality. Meadow soils [mostly loams with somesandy patches, which are relatively rich in organic matter content (1 percent to 3 percent)]are widespread in the middle part of the Liao Plain. Grain production is largely carriedout on these soils. Hydromorphic soils used for paddy cultivation are found in the rivervalley areas of Qing, Chai, Hun and Pu rivers and in coastal areas. Marshy soils occuron low-lying lands along the river courses and suffer seasonal waterlogging. In these soils,groundwater levels drop to about a meter below the surface only during droughts. Theseareas are also suitable for paddy cultivation.

2.5 Saline and saline-alkaline soils are found throughout the project area but witha heavy concentration in Kangping and Zhangwu counties with mineral concentrations inexcess of 7,000 parts per million (ppm). Saline soils contain sodium chloride whereassaline-alkaline soils also contain carbonates and bicarbonates of sodium and calcium. ThepH value of the surface soil is greater than 9 in saline-alalinesoils. About 6,500 ha ofuncultivated land under this category of soils would be reclaimed through leaching byirrigation and cultivation of paddy. Several thousand hectares have been reclaimed alreadyby this process and the soil structure and chemical properties are said to have improvedthrough paddy cultivation. No chemical applications (for example with gypsum) have beenmade so far in the project area to improve percolation and other soil characteristics. About21,300 ha of lands with saline soils where corn is currently grown (with low yields sincecorn is moderately sensitive to salinity) would be converted from dryland agriculture toirrigated agriculture to grow wheat, based on water availability.

C. WATR RESOURCS

2.6 Surface Water. The project area in Liaoning is served by several rivers(the Liao, Hun, Taizi, Raoyang, Daling and Xiaoling and their tributaries), most of whichhave reservoirs. The spoefic average annual runoff varies from 1.4 liters per second perkin2 for the Raoyang River to 8.9 for the Taizi River and is highly variable during theyear. The long-term mean annual runoff to the project area from the upper reaches of theLiao, Hun, Taizi and Raoyang Rivers is estimated at 2.5 billion cubic meters (m3). Thelocal runoff generated in the project area is about 1.7 billion m3 annually. The surfacewater used for irrigation, industry, and urban and rural water supply is estimated at around3.8 billion m3. There is therefore ample scope for udlizing another 377 million m3 fordevelopment purposes.

2.7 In Jilin, there are 10 main rivers traversing the project area. Total waterresources for this area are estimated at 5.5 billion i 3, of which about 1.7 billion m3 areused for agricultural, industrial, rural and urban water supply, leaving a balance of3.8 billion m3. Under the proposed project, river water would be used to irrigate paddyin two counties-Yushu and Jiutai, with the water drawn from Songhua River, one of themajor rivers in northeastern China. The combined water demand of the two irrigationareas is less than 10 percent of the monthly releases for irrigation from the FengmanReservoir on the Songhua River. Releases from this reservoir are enough to irrigate over126,000 ha. Of this 126,000 ha, about 76,000 ha (including the proposed 8,090 ha of the

- 11 -

project) are located within Changchun prefecture and only about 36,900 ha have so farbeen developed in the prefecture for irrigated agriculture. This would allow developmentof another 39,000 ha without any constraint of water supply from the Songhua River. The

mean annual release for irrigation from the Fengman Reservoir is about 1.2 billion m3 .

The irrigation requirement for the proposed 8,090 ha is estimated at about 112 million m3 .

2.8 Groundwater. In Liaoning, the total avcrage annual groundwater resourcesavailable for use are estimated at 4.3 billion m3, of which about 3.2 billion n3 per annumis utilized as follows: irrigation (2.1 billion m3e, industrial and urban consumption (1.1billion m3), rural consumption (0.1 billion m3), and other uses (0.01 billion m3). Of the

1.1 billion e3 available for further exploitation, the project would use 155 million n3 peryear. In Jilin, groundwater resources available are estimated at 4.1 billion m3, but most of

these resources are located in Baicheng Prefecture outside the area proposed for irrigatedwheat. Groundwater exploitation is proposed on a small scale in Fuyu county under theproject. The annual utilizable groundwater resources of Fuyu county are cstimated to be288 million m3. Less than 10 million m3 would be utilized for irrigating 2,000 ha of wheat

under the project.

2.9 Groundwater exploitation has experienced difficulties in the past, with almost

50 percent of the wells now nonoperational. This is attributable to two factors: (a) thepoor quality of material used for well construction. Usually concrete tubes were used, andthe ones constructed have deteriorated quickly. Filters were also of poor quality and haveclogged rapidly. The operational life of such tubewells has only been 5 to 8 years; and(b) due to the frequent need for maintenance, the performance of small village systems hasvaried according to the interest and skills available in each village. Routine maintenancewas not performed, leading to short well lives. Small-scale exploitation of groundwater

is also envisaged under this project but with better quality control in tubewell construction.

2.10 Lands affected by waterlogging in the project area amount to 622,000 ha in

Liaoning and 369,760 ha in Jilin. Drainage by gravity and by pumping would be providedunder the project.

D. WATE AvAMALm Am WATnR BALANCE

2.11 Detailed analysis of water availability and long-term water balance forSonghua River (in the reach between Fengman Reservoir and Hadashan Rescrvoir, which

comprises the project irrigated ares), including supply and demands for all uses has been

carried out. Summary of the water balance is shown in Annex 1, Table 4. Surplusquantities of water occur in all months since the first priority for dam operation is

generation of hydroelectric power. In the year 2030, there will be a surplus of 7.4 billionm3

2.12 Availability of groundwater in the different project areas has been assessed

in order to meet the long-term demands of aU uses. Summary of the water balance for the

different project counties is shown in Annex 1, Table 5. Groundwater would be available

- 12 -

in those counties to meet all future demands. In the year 2015, there will be a surplus of585 million m3.

E. PoPlAON, FARM Siz Am IAN USE

2.13 The project area has about 2.5 million farm families with an average familysize of four persons. The rumral population in the project area is 9.5 million with 8.8million in agnculture. The rural labor force of the project area includes 3.2 millionpersons or about 20 percent of the provincial rural labor force. Women comprise40 percent of the total rural labor force. Family activities are managed jointly by husbandand wife in about 50-60 prcent of the cases; about 6 percent of the families are managedentirely by women and the rest by men alone. Farm women are generally responsible forfertilizer application, pruning, weeding, hoeing, plant protection and collection offuelwood. They also participate in most other farming tasks, particularly harvest activities.The average per-capita holding is 0.21 ha in Liaoning and 0.34 ha in Jilin. Farmlands arecultivated under contract by individual households. The conwact period is generally about15 years but in the case of orchards, contracts run from 30 to 50 years. On this smallplot, a typical household will usually raise corn (or rice where irrigation is available) oroil-bearing crops and fruit trees if the land is undulating. Most families raise chickens andpigs for their own consumption.

2.14 Forest land covers about 28 percent of the Liaoning project area. Anextensive area has been planted to fast-growing trees (populus), mostly around farmboundaries and along the sides of roads and irrigation canals, which are being supportedfrom provincial agricultural development funds and China's food-for-work program. Fruittrees are traditionally grown in the hilly regions of Gongzhuling and Siping. A goodPotential exists for further development because of farmers' long experience, strongdemand for fruit and the availability of wastelands.

F. PRESENr DEVELOPMENr

2.15 Agriculture. The GVAO of the project counties in 1991 amounted to Y 9.7billion (Y 5.2 billion in Liaoning and Y 4.5 billion in -rlin), with the contribution fromcrops and fruit (72 percent), followed by livestock (20 percent), fisheries (3 percent),sideline production (3 percent) and forestry (2 percent). Seventeen counties have beenproposed for agricultural development, i.e., 12 counties in Liaoning-Changtu, Kangping,Faku, Tieling, Zhangwu, Jinxian, Beizhen, Heishan, Yixian, Liaoyang, Dengta and TaiAn-and four counties in Jilin-Nong An, Jiutai, Yushu and Fuyu.

2.16 The cultivated area of the 13 counties in Liaoning was 694,000 ha in 1991.About 482,000 ha (or 69 percent) was sown to foodgrains, primarily corn and paddy.Soybeans, covering about 81,000 ha, were the second most important crop after grains inthe prOject counties in the province. Other crops, covering a total of 131,000 ha includedsorghum, millet, peanuts, vegetables and fruit. The cultivated area of the four countiesin Jilin was 1.2 million ha. About 993,300 ha (or 83 percent) was sown to corn, paddyand wheat. Soybeans covered 95,600 ha, fruit and vegetables 45,500 ha and flax just 300

- 13 -

ha. The yields of these crops in the project area were generally lower than the averagesfor the two provinces (much lower in the Jilin counties). The main constraints to higherproductivity are sandstorms, waterlogging, surface salinity and alkalinity, frequent droughtsduring the critical spring period, and shortage of inputs, particularly fertilizer.

2.17 Fruit trees, mainly apples and pears, are grown on the hilly areas in thecentral and western parts of Liaoning, and apple-pears (pinguoli) in the Changbai mountainarea of Jilin. In the five counties proposed under the project in Liaoning, 50,000 ha hasalready been developed for orchards (60 percent apples and 40 percent pears) whose outputwas 108,690 tons in 1990 (62 percent apples and 38 percent pears), with the average yieldsof 2.2 tons/ha (apples) and 2.8 tons/ha (pears). In the two counties proposed for orcharddevelopment in Jiln, 2,400 ha were already planted, of which 440 ha were in apple-pears.Production of fruit was estimated at 47,000 tons in the province. In both provinces, themain problems in production include aging of trees, lack of technology, low sdill in fieldmanagement and shortage of investment funds. Thus, there is ample scope for improvingexistng production.

2.18 Soil, wind and water erosion have a serious negative effect on theproductivity of cropped areas. Floods along the Liao river also damage the liveihood ofmany farmers. The flood at its peak in each year reaches 1,000 m3/s, often covering anarea of 580,000 ha. Tree planting and protection of watersheds are expected to improvethe rural environment of the project area and provide stable production conditions.

2.19 Livestock is the second largest sector in the proposed project, accountingfor 24 percent and 15 percent, respectively, of the 1991 GVAOs in the Liaoning and Jilinproject areas. The livestock component would cover 25 counties in the two provinces-13in Liaoning (Changtu, Kangping, Faku, Xifeng, Tieling, Yixian, Liaoyang, Fuxin,Zhangwu, Kazhou, Dengta, Chaoyang and Jianping) and 12 in Jilin (Nong An, Dehui,Jiutai, Shuangyang, suburb of Changchun, Fuyu, Lishu, Changling, Qianguo, Qianan,Shuangliao, and Gongzhuling City). The animal population in the project area in 1991 was1.1 million cattle, 5.0 million pigs, 3.2 million sheep, 0.2 million goats and 25 millionpoultry.

2.20 Livestock productivity in the project area is low due to lack of quality feed,poor quality breeds, inadequate farm management and poorly supported veterinary andanimal husbandry programs. For most farmers, cattle production is a sideline dependinglargely on straw, hay, leaves and corn stover. This is more so in Liaoning where grainsare less available for feed. In Jilin, some fattening farms feed a mixture of corn andbrewer's and distdller's waste. Lack of credit and poor livestock support services have alsobeen constraints. The latter suffer from lack of adequate transportation, communication,equipment and operating budgets. These constaints would be addressed under the project.

2.21 Aquacuure. Liaoning Province has 2,800 Ikm of coastline. It borders theYellow Sea to the East and encloses the Bo Sea, which forms a large bay. The projectaquaculture area is located in the westem part of the Bo Sea. Fisheries are its importanteconomic activity, and Liaoning ranks fifth in China in total tonnage of aquatic products

- 14 -

(1.14 million tons) and third in the production of shrimp and crabs. The five Liaoningcounties proposed for fisheries development, namely Panshan, Dawa, Xingcheng, Suizhongand Jinxian, have around 14 percent of the province's coastline (350 kIn) and 6.5 percentof its 1991 production (70,000 tons). Total fisheries GVAO in 1991 for the five countieswas nearly Y 135 million. Some 250,000 workers are engaged in fisheries. Productioncomes from capture fisheries (47,000 tons), mariculture (15,000 tons) and freshwateraquaculture (8,770 tons). Of the 300,000 ha of shallow sea (within 15 m in depth) and the70,000 ha of coastal land, including 8,000 ha of rocky land, only about 9,000 ha ofshallow sea and 20,000 ha of coastal land have so far been utilized. The main aquaticspecies produced are shrimp, jellyfish, hard clam, short-neck clam, blue crab, andscallops.

2.22 The project counties contain shrimp culture areas of 7,880 ha, giving a totalproduction of 11,680 tons at an average yield of 1,480 kg/ha. The main problems ofshrimp culture are: eutrophication of offshore sea water, poorly designed pond layouts,pond aging, silting of channels, shortage of oxygen in pond water and shrimp disease. Theproject culture area of coastal and shallow sea shellfish would be 13,333 ha, giving anoutput of 2,800 tons combined hard clam and short-neck clam. The main problems ofcoastal and shellfish culture are shortage of spat, poor handling and inadequate processingtechnology.

2.23 Agricultural support services in the project area are provided by thetechnical bureaus of agriculture, water conservancy, animal husbandry, farm machinery,environmental protection and fisheries at the various levels from province to township.Research and extension services for field crop production in the proposed development areaare provided by the respective County Agrotechnical Extension Centers (CATECs) andTownship Agrotechnical Extension Stations (TATESs). The proposed area involves 12CATECs and 155 TATESs. The CATEC in each county directs the work of the TATESsin the county and also provides staff and farmer training. Farmers are served by TATESsthrough farmer technicians. The existing staff and basic facilities are adequate to copewith the additional services required by the proposed development area. Apart fromJinxian, Beizhen and Yixian Counties, which are going to be strengthened by the recentlyinitiated IDA-financed Agricultural Support Services Project, the CATECs need somefacilities and support. The TATESs in both the paddy and wheat irrigation developmentareas require additional facilities and equipment to provide better services to projectfarmers.

2.24 Distribution of farm inputs, including chemical fertilizer, pesticides, plasticfilm and tools are handled by the respective county/township supply and marketingcooperatives. About 25-30 percent of all fertilizer is allocated in exchange for cropprocurement. Diesel supply is also linked with contract grain purchase. Average annualper-hectare use of chemical ferdlizer in the project counties is estimated at about 860 kg(or 120 kg of nutrients). This rate is about 60 percent of the recommended applicationrates for the main grains (e.g., the recommendation for corn is 200 to 250 kg nutrient/ha).

- 15 -

Besides the use of organic fertilizer, application of chemical fertilizer has been increasingin the project counties. The project counties expect a further increase in the use ofchemical fertilizer due to the improvement of existing cultivation and the opening up ofnewly irrigated land.

2.25 Supply of improved seed is handled by the relevant county seed companiesopeating under the Agricultural Bureau. These companies handle the multiplication(mostly through contracting to seed growers), processing, storage and distribution of hybridcorn seed and other high-yielding variety seed (paddy, wheat and soybean). The existingseed companies in each county have adequate capacity to cope with additional seedrequirements for paddy, wheat and soybeans under the project.

2.26 Rural Credit. The major source of institutional credit is the provincialbranch of the Agricultural Bank of China (ABC) and its network of municipal and countybranches, township-level business offices and Rural Credit Cooperatives in both provinces.The standard terms and conditions of lending by ABC vary depending on maturity periodsand purposes of loans, from the lowest, 2.88 percent per year, for poverty alleviation loans(channeled through the bank by the national or provincial governments) to the highest,14.04 prcent per year, for capital construction loans above five years. Since July 1993,the interest rate on working capital loans for township enterprises has been 7.92 percentper year for loans under three months, 9.0 percent per year for loans under six months and10.98 percent per year for loans of more than six months. Development loans under threeyears attract an interest rate of 12.23 percent per year, while those above three years areliable for 13.86 percent per year.

2.27 The provincial governments have an understanding with the banks [(ABCand others, such as People's Construction Bank of China (PCBC)] that the banks wouldsupport the project through provision of loans for working capital required by the project'sagroprocessing enterprises and that the Bureau of Finance (BOF) with its network ofoffices in the project area would be responsible for onlending and recovery of projectfunds. Although BOF has some lending experience, there is evidence that their servicescan be made more effective through training tailored to the needs of the project. Trainingof BOF staff working for the project would be financed under the project.

G. INFRsmucTm:

2.28 Transport. Transportation of farm produce and processed products is notconsidered to be a problem in Liaoning or Jilin Provinces. Road standards are generallygood and the region has adequate railway connections to Harbin, Dalian, Tianjin andBeijing.

2.29 Most of the processing factories under the project have access to good depotsat local railway facilities and some have dedicated railway sidings within the factorypremises. The northem project areas have access to river port facilities, which are underexpansion, at Da An in Jilin Province. The southern project areas have port access (atDalian, Yingkou, Jinzhou, Qinhuangdao, etc.).

- 16 -

2.30 Power Supply. The North China Power Grid (NCPG), which wouldprovide all electrical main-supply to the project area, is currently undergoing a majorupgrade. The Northeast China Network (NECN) operates at 500 kilovolts (kV) and coversprovinces north of Beijing as wel as the metropolitan cities of Beijing, Tianjin andTangshan. This network would supply all of the project components in both Liaoning andJiln. The Power Bureau have confirmed their commitment to provide all components ofthe project with adequate power supply to ensu full utilization of plant and equipment.

H. DE=GN CoNDEAnoNs

2.31 Liaoning's proposals have been desged to take into consideration its steadyloss of agricultural land to nonagricultural uses and its endowment of a long coastline withgood fishery resources and potential for shellfish and shrimp production. Project strategywould be to invest in land reclamation and improvement. Crop diversification (from cornto wheat and paddy) on the reclaimed saline-alkaline land would call for timely irigationand proper drainage facilities to evacaate leached salts and other minerals from the fiedsto natural water bodies at environmentally acceptable quality standards. Furtherinvestments are needed to fully raise crop yields in these low-lying and saline-alkalineareas and optimize the use of incremental crops and by-products for livestock productionand processing.

2.32 Jiln's proposals have been designed to optmize retums from investment bycombining assistance to crops, livestock and agop sing to obtain productivity gainsand rural incomes, takdng into consideration its special problems arising from an increasingsurplus of com production and its long cold winters limiting crop production to one seasonin most counties. Project strategy would be to encourage diversification to other cropssuch as wheat or paddy where irrigation is available or can be provided at affordable cost,and to stabilize maize yieds in areas prone to waterlogging through provision of drainagefacilities. In addition, increased use of corn as livestock feed and in industry would haveto be further promoted.

L WoMEN IN AGmcumuRAL DEvEpmMT

2.33 The project would target women farmers as beneficiaries by supporting smalllivestock production, such as that of geese, rabbit and pigs. These activities do not requireheavy physical strength but yield high return. Female-headed households are targeted bythe project as priority beneficaries. These single-income households have limited assetsfor collatel, hence less access to credit, inputs and other production means, and aregenerally poorer than male-heded households. The Women's Pederation at the villagelevel would work very closely with the Project Management Office (PMO) in identiffyingfemale-headed households.

- 17 -

3. THE PROJECT

A. ftoEC ODECrVE

3.1 The major objective of the project is to assist Liaoning and rluin Provincesin their agricultural development plans, which aim to increase agricultural production,farmers' incomes and rural employment by boosting the productivities and marketabilityof agriculture, horticulture, livestock, aquaculture and agroindustries in the project areas.The project would (a) improve productivity of existing low-yield farmland by expandingirrigation and drainage facilities; (b) develop unutilized wastelands for rice production;(c) introduce soil and water conservation; (d) develop marginal highlands for fnritproduction; (e) provide a complementary package of farm inputs, agricultural supportservices, training and technical assistance; (f) develop intertidal areas for aquacultureproduction; (g) support livestock production, processing and support services; (h) expandagroProcesing activities utilizing available raw materials; and (i) strengthen research,extension and environmental protection programs.

B. PRoncEr DEscRrnroN

3.2 The proposed project would be composed of seven components:

(a) Irrigation and Drainage. The project would reclaim wastelands for paddycultivation, convert low-yield com areas into irrigated wheat, developsaline-allaline land for production of flax for seeds, and solve waterloggingproblems by financing investment in construction and improvement of low-lift surface irrigation and drainage networks and installing pumping stationsand sinking wels to provide additional water.

(b) Soil and Water Conservation. The project would finance investment in theconstruction of check dams, gully head protectors, intercepter channels andassociated cross-drainage works; afforestation with larch and poplar andestablishment of orchards with irrigation water supplied by small reservoirsand wells, and the establishment of appropriate ground covers.

(c) Field Crop Development. The project would finance farm inputs, supportfarmer groups to purchase farm machinery, improve management andfacilities of farm machinery stations and strengthen crop extension services.

(d) Orchard Development. The project would support development ofmarginal lands for orchards, improvement of existing orchards of apples,

- 18 -

pears, apricot and apple-pears (pinguoli) and finance construction of fruitcold stores.

(e) Livestock Development. The project would provide for the integratedproduction and processing of cattle, sheep, rabbits, deer, pigs and geese andstrengthen livestock support services.

(f) Aquaculture Development. The project would finance the development oflow-lying mudflat wastelands for shrimp, shellfish and river crabproduction. It would also finance construction and equipment for hatcheriesand cold stores.

(g) Agroproceulng. The project would finance the construction andrehabilitation of various agroprocessing and agroindustrial facilities thatutilize agricultural outputs or by-products. These include plants to producecorn starch, industrial alcohol, gelatin, juice, edible oil, paper (from strawand dogbane), textiles, and leather.

3.3 The proposed project would also strengthen overall project management,research and extension, and the environmental protection program by providing equipment,technical assistance and training.

C. DErAILED FEAURES

Irrigation and Drainage Component

3.4 The primary constraints limiting the improvement of agricultural productivityof existing farmland are lack of irrigation water in low-yild farmland, poor drainage inwaterlogged areas and lack of important agricultural inputs in both areas. In Liaoning, theproject would provide for reclamation of 6,200 ha of saline-alkline wasteland for paddyproduction and conversion of 21,300 ha of rainfed com land to irrigated wheat. In Jilin,the project would provide for improvement and expansion of existing irrigation schemescovering 8,000 ha, conversion of 2,000 ha of rainfed com land to irrigated wheat andprovide drainage facilities for 11,500 ha of waterlogged areas (Annex 1, Tables 9-10).

3.5 Reclamation of Slfine-Alkaline Wasteland (Liaonlng). The project wouldreclaim 6,200 ha of saline-alkaline wasteland in seven counties in Liaoning for paddyproduction, with command areas ranging from 167 ha in Tieling to 1,333 ha in Zhangwu.The worlks would include: (a) two low-lift pumping stations with a total power of 110 kWto irrigate 367 ha; (b) 567 tubewells-30-70 m deep with average discharges of 80 to160 m3/hr-to irrigate 5,667 ha with a command area averaging 10 ha per tubewell;(c) gravity irrigation for 133 ha; (d) installation of 80 km of water-saving pipes coveringan area of 667 ha; (e) drainage facilities to ensure paddy cultivation on a long-term basis;and (f) land leveling and deep plowing. The two pumping stations would be builtdownstream from the Xiapozi reservoir in Kangping county. A total of five pumps would

- 19 -

be installed with delivery capacity of 1.1 m3/s. Main canal and branch canals would bealso constructed to deliver water to the reclaimed areas.

3.6 Conversion of Dryland to Irrigated Wheat (Liaoning). An area of21,300 ha of low-yielding and sand-erosion-susceptible land would be converted from dry-farmed corn to irrigated wheat in 10 Liaoning counties with command areas ranging from1,333 ha in Zhangwu to 4,000 ha in Heishan county. The works would include: (a) 1,545deep tubewells (40-70 m deep, discharging 80-160 m3/hour to an average command areaof 12.5 ha), of which 1,506 would be equipped with electrical motors and 39 with dieselmotors and 370 shallow tubewells (10-30 m deep, discharging 40-60 m3/hour to an averagecommand area of 7 ha) equipped with diesel motors; (b) 452 open wells (10-20 m,discharging 20-40 m3/hour to an average command area of 4 ha), of which 394 would beequipped with diesel motors and 58 with electrical motors; (c) 606 km of water-savingpipes covering an area of 5,053 ha; (d) adequate drainage to ensure sustainable operationof farms and to provide for a second crop in the wet season; and (e) land leveling.

3.7 Song Qi Irrigation Scheme (Jilin). Under this scheme the total area to bedeveloped would be 3,590 ha (including a 1,745 ha command area for the first-stagepumping station and a 1,845 ha one for the second-stage pumping station). It would newlyirigate 2,660 ha and improve irrigation on 930 ha. An intake and first-stage pumpingstation have already been constructed on the left bank of the Second Songhua River. Themain and secondary drains have also been constructed. The farm-level drainage networkswould not be included in the project but would be financed by the government from otherfunds. Assurances were obtained at negotiations that Jilin would construct thefarn-leveldrainage networia related to the Songqi irrigation scheme in accordance with constructionplans satisfactory to IDA.

3.8 Project works would include: (a) the replacement of the second-stagepumping station (now dilapidated) with five pumps with total capacity of 775 kW withpumping capacity of 4.6 m3/s and head of 7.7 to 8.6 m; (b) several structures on the twomain canals; (c) secondary amnals and their irrigation networks; (d) gates and 180structures on the secondary irrigation canals; and (e) additional small structures (about1,500) to complete the already existing main and secondary irrigation and drainagenetworks.

3.9 Song Po Irrigation Scheme (Jilin). The Song Po irrigation area, which islocated on the right bank of the Second Songhua river, requires three levels of pumpingdue to the topography. The water from the river is pumped into a main canal, with theexcess channeled into a natural receiving pond from where four second-stage pumpingstations lift water to command areas. At the end of the main canal associated with two ofthese secondary pumping stations, two third-level pumping stations lift the water to theremainder of the command area. In addition, a secondary first-stage pumping station,located about 1 kam downstream from the new pumping station, lifts water from theSongliao river and irrigates 380 ha. This station and the secondary and tertiary pumpingstations are all in bad condition and will have to be replaced.

- 20 -

3.10 The total area to be irrigated under this scheme would be 4,500 ha(improved 3,200 ha and new 1,300 ha, of which 400 ha is now wasteland and 900 ha dryfarming land) including 180 ha irrigated directly from the first-stage pumping station. Theproject works for this scheme would include (a) a renovated first-stage pumping stationwith two pumps with a total capacity of 310 IW; (b) replacements for the existing second-and third-stage pumping stations with 13 pumps with total capacity of 1,355 kW; (c) twonew pumping stations, one each at the second- and third-stages with a total of five pumpswith capacity of 435 kW; (d) improvements on 38.3 Ikm of main and submain canals andseveral new structures; (e) six new main and submain canals with a total length of 10.6kin; (f) 154 new branch and latvral canals with a total length of 190 klm; (g) improvementson 15 main drainage channels with a total length of 26 kin; (h) 133 new drainage channelswith a total length of 180 kIm; and (Q) 520 small structures.

3.11 Dam Safety. In Jflin, Song Qi and Song Po irrigation schemes would beirrigated from releases of Fengman Reservoir. This reservoir is very important source ofhydroelectric power in the Northeast of China. It is well maintained and inspectedregularly for safety. Since it would be the source of irrigation water for the two irrigationschemes in Jilin, the PMO would provide a periodic inspection report for IlDA's review.Assurances were obtained at negotiations that dams and reservoirs supplying the irrigationsystems under the project would be maintained and inspected periodically in accordance

Mth sound engineerng practice, under arrangements satufactory to IDA.

3.12 Conversion of Rainfed Dryland to Irriated Wheat. An area of 2,000 haof dry-farmed corn would be converted to irrigated wheat in Fuyu county usinggroundwater. Well fields would be developed by installing a total of 200 electricallydriven deep tubewells to irrigate wheat. These wells would have command areas averaging10 ha each, would be 60-80 m deep and would discharge at an average 50 to 80 m3lhour.The area to be irrigated would be distributed evenly among 10 townships of Fuyu County(200 ha each). A well development revolving fund would be established with the proceedsfrom repayment of loans made for wells and used for new wells and water-saving pipes(para. 4.13).

3.13 Drainage Improvement to Waterlogged Areas In Wazhonggao andHuajia ,lln). The project would improve drainage in two waterlogged areas covering11,500 ha (7,700 ha of existing systems and 3,800 ha of new areas) in the Wazhonggaoand Huajia areas located on the left bank of the Xinkai river in Nong An county. In theWazhonggao area, drainage improvements would provide protection against 1:10 yearsflood for about 6,500 ha (3,770 ha by pumping and 2,730 ha by gravity) and in the Huajiaarea for about 5,200 ha (2,900 ha by pumping and 2,300 ha by gravity). The works underthe project would include (a) three pumping stations in Wazhonggao with eght pumps anda total capacity of 940 kW; (b) five pumping stations in the Huajia area with 13 pumps anda total capacity of 700 kW; (c) improvements in the existing drainage system; (d) 205 kmof new drainage networks (106 kan primary and secondary drains); and (e) about 710struct in the dminage networks.

- 21 -

3.14 The project would provide some training facilities for training and wouldfinance foreign training, study tours and 4 man-months of technical assistance to improvedata collection, processing and analysis relating to surface and groundwater resources.This data would be used in water resource management plan. The Liaoning PMO wouldprovide a report on groundwater monitoring and assessment in the different project areasduring the period May I to April 30 by October 31 of each year. An assurance to thiseffect was obtained at negotiations.

Soil and Water Conservation

3.15 The project would provide funds for implementing engineenng andbiological measures to conserve soil and water in 11 micro watersheds located inShuangyang county of Changchun Prefecture, Jilin Province. The engineering measureswould consist of building check dams 1/ (550), gully head protectors (145), interceptorchannels (1,181) and associated cross-drainage structures (12). Biological measures wouldconsist of planting larch, poplar and fruit trees. In order to provide adequate water for thegrowth and maintenance of these trees, catchment dams would be built to create smallreservoirs (30) and, in addition, a small number of deep tubewells (10) would be drilled.Water would be pumped to upper-level storage ponds from these reservoirs and wells, andthe fruit trees would be irrigated by gravity from these ponds. One of the microwatersheds would be selected to serve as a model watershed for the farmers of the area forknowledge and methodology. Successful implementation of soil and water conservationmeasures and the resulting benefits would be transferred to other farmers in the countyfrom the model watershed. Funds would be provided to support the initial operation ofthis (pilot) model watershed.

3.16 Larch trees would be planted on 2,195 ha of sparsely forested wastelandand poplar trees would be planted on 305 ha of gully-eroded areas. A total of 14,487,000larch seedlings and 2,745,000 poplar seedlings would be planted. Terracing and plantingof cover crops would also be undertacen by farmers to minimize soil erosion. Pinguoliwould be planted in 2,000 ha with 1,200,000 seedlings at a density of 600/ha. Theseedlings would be purchased from other growing areas. Irrigation would be provided bywater from tubewells and small reservoirs.

3.17 The small dams and drainage failities would be constructed with laborprovided by local farmers under the direction of the water conservancy bureaus of thecounties and Changchun Prefecture. Planting of larch, poplar and fruit trees would becarried out by contracting households. Funds would be provided to train participatingfarmers in the construction of small engineering sfruct, orchard planting andmanagement, soil and water conservation, fish production in reservoirs, etc. Trainingwould be carried out in three ways: running a model watershed through directmanagement by the Shuangyang Small Valley Development Company to be set up underthis project; training of personnel through visits to other successful watershed management

I/ The chwk dams wold typially be about 8-m long and 2-m high. Top width would be 1 m andbottom width would be S m.

- 22 -

projects in China (such as those in Guangdong); and by training courses to be conductedin the county itself. Both farmers and technical personnel would receive training. Suchtraining would be in addition to that provided by existing agricultunl extension services.

Field Crop Development

3.18 The major constraints to increased production in the project counties are thelack of fertlizer, agricultural machinery and crop support servces. The project wouldfinance about 14,000 tons of incremental fertilizer (urea 7,200 tons, DAP 5,500 tons andsulfate of potash 1,400 tons) for Liaoning and would provide 14,400 tons of incrementalfertilizer (urea 7,300 tons, DAP 5,700 tons and sulfate of potash 1,400 tons) for Jilin tobe used in irrigated paddy and wheat cultivation over the five-year project implementationperiod. Ferdlizer would be procured by the project and sold to the farmers in the projectareas. A rewvlzng fAid would be established with sales proceeds and used to procureagricultural inputs, operated in accordance wuth procedures satfactory to IDM (pam.4.13). An assurance to this cfect was obtained at negotiatons.

3.19 To facilitate the preparation of large pieces of land within limited timePeriods, the project would support farmer groups in purchasing tractors and farmimplements. The proposed components would provide 495 tractors (80 hp) withimplements for farmer groups (tractor teams) in 250 selected villages in Jihn and 189tactors (62 sets of 80-hp tractors and 127 sets of 25 hp) and farm implements in Liaoning;new equipment, tools and fuel storage/supply facilities; improvements to four county-levelfuel storage and supply stations (in Yushu, Nong An, Dehui and Changchun Counties); andimprovements to 28 existing township-level machinery shop/fuel stations by improvedtraining for service station managers, mechanics and drivers through provision of additionaltraining equipment for sdected farm-machinery training schools in three counties (Yushu,Nong An and Dehui).

3.20 In addition, the project would provide seeds, ferdlizer, storage facilities,training and transportation to support the cultivation of eight species of medicinal plantson 1,333 ha in Kazuo county. The project would also support the development of about992 ha of seed production base for flax (mainly selected variety Heiya 6') in Qian Ancounty. The seeds to be supplied to farmers (on about 4,000 ha) would be used for theproduction of about 12,800 tons of flax for processing in a factory to be financed underthe project.

3.21 The project would strengthen crop support services in Liaoning by providingtrning equipment and vehicles for eight selected CATECs in Changtu, Kangping, Faku,Zhangwu, Heizhen, Liaoyang, Dengta and Tai An Counties and financing for a five-yearprogram of local training on irrigated paddy and wheat cultivation practces for extensionstaff, farmer technicians and farmers. In Jilin, the project would strengthen 13 TATESs,which would be involved in the proposed paddy irrigation development area (threetownships in the Song Po and Song Qi areas) and the wheat irrigation development area(10 townships in Fuyu county). For the three TATESs in the paddy irrigation area, the

- 23 -

project would provide training facilities, audiovisual sets and soil testing equipment. Theproject would also support the fertilizer blending facility at Yushu CATEC to formulatefertilizer to meet specific crop and soil requirements. In addition, research funds wouldbe provided for adaptive trials. Assurances were obtained at negorianons that the PMOwould submit annual research plans to IDA for revew by October 31 of each year for thesubsequent year. For the 10 TATESs in the Fuyu wheat irrigation area, the project wouldfinance soil and seed testing equipment. Further, the project would finance local trainingon irrigated paddy and wheat cultivation practices for extension staff, farmer techniciansand farmers. Training would also include courses on pest management.

Orhard Development

3.22 in Liaoning, the project would finanee new orchards and improvement ofexisting ones covering a total area of 15,400 ha comprsing apples (11,257 ha), pears(1,333 ha) and apricots (2,850 ha). The new planting (6,183 ha) would be undertaken inlow hilly areas with a plant density of 750 plants/ha. New planting of apples in Nanshanfarm would adopt the advanced technology of growing apples on dwarf and semidwarfclonal root stocks, so that the trees would have a high density (750 plants/ha) and earlyoutput. New plantings of pears in Beizhen would be with 'Ya Li' cultivars withpollinators. New apricot plantings in Yixian (with a density of 750 plants/ha) wouldproduce fruit for the fresh market, while new plantings of apricots in Beipiao and Lingyuanbe designed to produce apricot kernels, to be used in food, medicinal and industrialapplications. Improvement of existing orchards is generally carried out by providingirrigation facilities for apples and pears. Top grafting would be carried out in young appleorchards (3-6 years old) that have low quality varieties by substituting Red Fuji' clones(Nagafu, Akefu).

3.23 The project would also finance the purchase of farm inputs (7.3 millionbudded plants, 12,680 tons urea, 5,390 tons DAP, agrochemicals, and hired labor), theconstruction of irrigation facilities, and the acquisition of small machinery and tools.Funds would also be provided for training farmers and technicians. To support marketingactivities, the project would finance construction of two cold storage facilities in LiaoningProvince, one of 1,500-ton capacity for Fuji apples, located at Dataishan State Farm(Suizhong county) and the other of 1,000-ton capacity for pears, located in Datun Townin Haicheng County.

3.24 In Jilin, the project would finance the establishment of 5,000 ha of neworchards of pear, pinguoli variety distributed in hilly areas of Lishu county (3,334 ha) andGongzhuling county (1,666 ha), where climate and soil conditions favor this pear type andare most suited to obtain the best quality fruit. The land would be allotted to about 3,400households on contract, each with 1.47 ha. The new orchards would be planted in springand would have a density of 600 plants/ha. The rootstock would be the common well-adapted wild pear (p. ussurcensis). Specifically, the project would provide inputs(seedlings, fertilizer, agrochemicals, irrigation facilities, equipment and tools) and services.Farm equipment would include 2,500 shallow tubewells (20-30 m deep, delivering

- 24 -

8 m3l/hour powered by electric or diesel motors), and 6,800 sprayers at the rate of two perhousehold consisting of one high-pressure and one shoulder sprayer.

3.25 In addition, the project would also fund the purchase of 10 vehicles and 1512-hp tractors. Funds have also been provided for (a) training one person in eachparticipating family for two days two times a year for five years; and (b) training county,township and village technicians at the Institute of Pomology, Gongzhuling and the Instituteof Horticulture, Jilin Agricultural University-S0 county technicians to be trained twice ayear, each time for seven days; 40 township techniians trained twice a year, each timefor eight days and 220 village technicians trmined four times a year, each time for fivedays. To support extension and training activities, the project would finance experimentaland demonstration plots (5 ha of pinguoli) in the Jilin Agricultural Institute of Pomologyin Gongzhuling, covering the cost of staff (four horticulturists, one technician and six fieldworkers), equipment (tubewells and soil analysis equipment) and the establishment andmanagement of orchards. Two demonstration orchards of 2 ha each, one in Gongzhulingand the other in Lishu county, would be established with the objective of investigating anddemonstating proper plant pruning and management for early-bearing, plant densities andpruning practices, fertizer application intensities, pollination methods, pest management,fruit maturity, packaging and storage.

Livestock Development

3.26 Cattle Fattening. In Liaoning, the project would finance the purchase andfattening of about 33,060 cattle annually by 6,612 households (5 cattle/household) in 10counties-Tieling, Changtu, Xifeng, Faku, Kangping, Fuxin, Zhangwu, Kezuo, Longchengand Liaoyang. Credit would be provided for the construction of a cattle shed, a feedstorage facility and a green silage pit. Groups of up to 30 farmers would collectivelypurchase a corn stover chopper under the loan package. First-year costs of feedconcentrate would be incorporated into the investment cost. In rilin, the project wouldsupport 6,000 farmers from Changchun prefecture and 1,000 farmers from Fuyu countyto fatten three cattle annually, by financing the purchase of three yearling cattle per unit,and the construction of a cattle shed, a feed store, a maize stover chopper and the firstyear's worling capital requirement. These farmers would generate sufficient income tofatten an additional three cattle per year by the end of the project. Feeder cattle for thesehouseholds and those mentioned in paras. 3.25 and 3.26 would be purchased pardy in thecounties concerned and partly in neighboring counties and Inner Mongolia. Tentativecontracts totaling about 50 percent of total feeder cattle requirements have already beensigned by the project counties with suppliers in Inner Mongolia.

3.27 Cattle Breeding. In Liaoning, the project would finance the supply oncredit of about 6,720 breeding cows to an estimated 2,240 households in Kangping, Dengtaand Yixian counties. A total of 747 farmers selected across the participating counties/citieswould each receive three in-calf heifers or second-calving cows in the first year.Tereafter, 747 farmers would join the scheme in both the second and third years. Creditfunds would also be provided for a cow, a feed shed, a silage pit, and a stover shredder.Feed and animal-health costs for the first year would also be financed.

- 25 -

3.28 Cattle Breeding and Fattening. In the two provinces, a total of 13,500smnallholder farmers from eight counties would be provided with credit for the purchaseof 40,500 pregnant heifers or second-calving cows, construction of cattle shed, feed store,a green silage pit and a motorized stover chopper and working capital to cover operatingcosts of the first year. This program would be implemented during the first two years ofthe project. To support the cattle breeding program, the project would finance theimprovement of the Artificial Insemination (Al) system in both provinces (para. 3.43).

3.29 Feedlots. In Siping prefecture (Jilin), the project would finance 180 feedlotunits, each managed by a group of 5-6 farmers to fatten 30 cattle in a 180-day fatteningperiod and turn out 60 fattened cattle per year. These units would get credit for thepurchase of one batch of 30 cattle and the feeding and animal health cost for 180 daysalong with credit for the construction of the cattle shed, feed store, silage pit and amotorized stover chopper to be shared among 5-6 units. These programs would beimplemented during the first two years of the project.

3.30 Sheep Breeding. Five thousand farmers from four villages in Changlingand 1,000 households in Fuxin would be provided each with 25 ewes, construction of thesheep shed and a green silage pit and working capital to cover the feeding, breeding andhealth costs for the first year of operation. These farmers would build up flocks of 80ewes by the ninth year and stabilize at that level. The sheep production program wouldbe supported by a sheep AI station using imported rams and ewes and equipped to producedeep frozen semen and provide quality AI service to farmers. Field units will also beequipped to provide more effective extension service to sheep farmers. In the samecounty, the project would improve about 27,300 ha of degraded grassland in about 50vWilages. Pasture rehabilitation would be introduced after the village has shown its abilityto control overgrazing and reduce the number of animals. Both partial rehabilitation andtotal renovation would be practiced. The pasture would be funded through a project loanto the village, which would be repaid through a grazing fee and the sale of hay by thevillage community. The improvement works would be carried out by the GrasslandImprovement Station, and the project would upgrade the station with machinery andequipment. The project would also equip the station with the necessary means to monitorthe condition of pasture in the region as an early warning system for overgrazing.

3.31 Nucleus Rabbit Stud. A nucleus stud stocked with imported breed linesis proposed for Chaoyang City. The stud would include a rabbit house, growing-out pens,a feed warehouse and office accommodations. The stud would be enclosed by a200 m-long security wall. Equipment would include rabbit hutches and cages and water,power and heat generation and distribution systems. Imported breeding stock wouldinclude 200 females and 50 males. Working capital would cover the feed and health costsfor the first year.

3.32 Rabbit Production. The project would support two rabbit productionprograms in Changtu and Jianping Counties, Liaoning Province. The Changtu programwould include 650 households producing 250,000 finished meat rabbits annually. InJianping County, 2,275 farmers would participate, producing 850,000 head per year.

- 26 -

Partcipating farmers in Changtu and Jianping would be provided with 3 bucks and 15does, a production house, rabbit hutches, feed and water troughs and working capitalcovering the first year's production costs. In both counties, 10 commercial stud farmswould be established. In Changtu County these would be owned by specializedhouseholds, each having 30 does and 6 bucks. In Jianping County, the rabbit studs wouldbe owned by farm cooperatives. Each would be equipped with 100 does and 20 bucks.Farmers would be provided credit for breeding stock, a production house, cages, water andfeeding troughs and a fence, together with working capital covering the first year'sproduction cost.

3.33 Deer Stud. A deer stud housing 500 breding females and 100 piloseantler-producing stags would be established on a 2.5 ha site near Xinxiang Township,Xifeng County. The project would support the purchase of breeding stock and theconstruction of sheds, a feed store, a feed processing room, a forage store, four silage pits,an antler processing room, an office block, staff accommodation, a canteen, a powersubstation and a guard room. Boreholes would be drilled, a perimeter fence constructedand an access road provided. Equipment for antler processing, feed milling and electricaland water distribution would be financed, together with miscellaneous veterinary andanimal husbandry equipment. Transportation would include two 5-ton trucks and a 70-hptractor. Worling capital would be provided to cover incremental vanable costs during thefirst three production years.

3.34 Deer Production. About 150 smallholder deer farms would be establishedto absorb the production from the Xinxiang deer stud firm. Each farm would receivecredit for the construction of a holding pen, a silage pit, an animal husbandry lit, two doesand two stags, together with worling capital to cover the first year's operating costs. Theproject would also support 600 smallholder farmers from the poor families in Shuangyangcounty to start deer farms with two stags and two does to build up a herd of six stags andthree does. Credit would be provided for the purchase of the four deer, constuction ofthe shed and worling capital to cover the feeding and animal health costs during the firstyear. The farmers would be given a grace peiod of three years to enable them to buildup the herd to generate sufficient income to repay the loan.

3.35 Goose Breeding. The project would finance the establishment of a goosehatchery in Bamiancheng Township, Changtu County, comprising goose breeding houses,a goose nucleus flock shed, a hatchery, an egg-handling room, a feed store and an office.A waste burner and a manure oxidization-reduction pond system would be provided forwaste disposal. A pond would be constructed inside the compound for water-plantproduction and goose grazing. Equipment proposed for funding would include incubatorsand sterilizers, feed and water troughs, cages, feed processing and distribution equipment,electrical supply, motors, a stand-by generator, water pumps, shed cleaning equipment, andoffice equipment. Funds would also be provided for the purchase of a 5-ton truck for feedsupply. The breeding center would be stocked with 16,500 breeding geese purchased withproject funds. Working capital provided would cover the first year's feed and veterinaryexpenses. Most of the goslings would be sold outside the county, and the hatchery would

- 27 -

therefore not replace the current cottage industry, which provides a small but importantsupplementary income to women.

3.36 Goose breeding and fattening is proposed as an expansion of the ChangtuCounty goose breeding program. Seven geese and one drake would be provided on creditto 5,500 households in Changtu County and 3,500 households in Zhangwu County.Participating farmers would be expected to provide all roughage inputs and family labor,supervise the daily grazing of the birds, construct a night pen, purchase the breeding geese,concentrate feedstuffs and veterinary services on credit. An identical package has beenagreed for Wufeng Township, also covering 4,500 households, in support of the Wufenggoose slaughter and down processing enterprise. A further package would involve 10,000smallholder farmers from Nong An County, Changchun Municipality. Each householdwould produce 50 eggs and 110 fattened geese per year at full production. The farmerswould hatch the goslings in their own households and raise them for five months, mostlygrazed during the summer months to be ready for slaughter during October/November.This is a high-return investment, and the farmers would be able to pay back the loan intwo years, after which the funds could be recycled.

3.37 Pig Fattening. An American joint venture company is being formed to setup a pig abattoir with 600,000 head/year capacity and to rehabilitate an existing feed mill.The piglets provided to farmers would be a three-way cross between the Landrace, theLarge White and the local Jilin Black sow. Thirty percent of the piglets would beproduced at the joint venture's own breeding farm, the remainder would be contracted tospecialized households. The contracts with the breeding and faitening households willprovide guaranteed input and finished-product prices and are renewable for the nextfattening period. The project would support 2,500 smallholder farmers from GongzhulingMunicipality with credit to construct pig sheds, a feed shed and perimeter fencing to fatten60 pigs in a period of six months and turn out 120 finished pigs per household per year.The program would be implemented during the first two years of the project. A livestockrevolving fund would be established with the proceeds from repayment of loans made forlivestock development and used for new livestock production activities (para. 4.13).

Livestock Prcessing

3.38 Cattle Abattoir. In Liaoning, the project would finance one 30,000 head/year cattle abattoir and a 600-ton cold store in Changtu County on the site of an existingrundown slaughterhouse, which would be parially demolished to accommodate the newplant. The building would include a slaughter and processing floor, a blast freezer, afreezer store, a quarantine room and a holding yard. Supporting infrastructure wouldinclude utility rooms, a storeroom, an office and a wastewater treatment unit. The accessroad would be reconditioned and asphalt surfaced and an existing railhead would beextended. Equipment would include a complete mechanized slaughter line, a processingline, freezing equipment, laboratory equipment, a boiler, air-conditioning equipment, andelectrical, water and steam supply and distribution systems. Offices and staffaccommodation would be furnished. Equipment would also be provided for the cattle shedand a comprehensive wastewater treatment system. In addition, three 10-ton refrigerated

- 28 -

trucks, three cattle transport trucks of 20-ton capacity and working capital would beincluded.

3.39 In rJlin, the project would finance the construction of one new 50,000 head/year cattle abattoir in Dehui County with a fully imported production line and thereconstruction of the existing cattle abattoir at Shuangliao to its full 50,000 head/yearcapacity using locally provided equipment. Comprehensive wastewater treatment systemswould also be provided for both abattoirs. The Dehui cattle abattoir would come intoproduction in the third year of the project, while that at Shuangliao will function from thesecond year.

3.40 Sheep Abattoirs. Since there is not a single specalized sheep abattoir inJilin province, a new 500,000-head/year sheep abattoir and a 1,500-ton cold store wouldbe established in Changling to service the sheep breeders in the project area and wouldcome into production by the third year of the project. New construction for the abattoirwould include a sheep slaughter floor, a meat processing workshop (cutting andpackaging), a blast freezer, an office building, a garage, a boiler room and concreteflooring. A penmeter wall would be constructed together with a comprehensivewastewater treatment plant. Equipment for sheep slaughter, butchering and packagingwould be supplied, together with a rendering plant, refrigeration equipment, a boiler,freeze storage equipment, a weighbridge, and wastewater treatment machinery. Air-conditioning, steam, water and power distribution systems would be provided.Transportation would be provided through the supply of two 10-ton refrigerated trucks andtwo 20-ton livestock transport truckl/triler units. Two forldifts for product transfer anda van would also be supplied. Working capital provided would cover the first fourmonths' operating expenses.

3.41 Goose Abattoirs and Down Promeing. In Liaoning, the new WufengTownship enterprise would be established on the site of an existing down separation unit.New construction would include a goose abattoir and processing workshop, a cold store,a feather drying yard, feather stores, a down washing shop, and a laboratory. An officeand a down product workshop would complement the raw product processing facilities.Supporting infrastructure would be included. Equipment inputs include complete slaughterand feather processing systems, a refrigeration system and laboratory resources. The downproduct factory would be equipped with cutting, edging and sewing machines. Water,electrical and heating systems would be provided. Transport would include a vehicle andtwo 5-ton trucks. Worling capital would cover the first year's operating cost.

3.42 The project would finance the improvement of the existing goose abattoirin Nong An, Changchun with a new imported production line for 1.1 million birds peryear to absorb the production of geese in the county as slaughter of geese is linited to50 days during October/November each year. The project would also financeimprovements to the raw feather separating factory and the construction of a new downprocessing factory to add value to the down produced. A waste processing system wouldalso be supported.

- 29 -

3.43 Rabbit Abattoir. A collectively owned, 400,000 head/year rabbit and400,000 head/year geese abattoir would be constructed in Changtu County. The abattoirwould include a slaughter and processing floor, a secondary processing shop, a blastfreezer and a cold store. Supporting services would include the construction of alaboratory, utility rooms, an office block, a guard room, a staff canteen, a garage,storerooms, a bicycle shed, an access road and a perimeter wall. The abattoir would besupplied with a complete slaughter and processing line, meat packing equipment and arefrigeration system. Water, power, heat and steam generation and distribution systemswould be provided. The product would be transported to market by one 8-ton refrigeratedtruck, and an additional 8-ton truck for stock collection and waste transfer would also befinanced. Working capital would be financed to cover the first four months' operatingcosts.

Supporti Services

3.44 The project would strengthen support services including AI, feed qualitycontrol, pasture development and livestock extension. In Changchun City, Jilin Province,the project would finance the construction of a new Al station, including modest trainingfacilities. It would also provide a liquid nitrogen (LN) plant, laboratory equipment and thenecessary LN storage and distribution equipment, including an LN transport vehicle witha mobile tank. For Changchun Municipality, the project would finance the constructionof four county-level semen distribution centers (including a veterinary clinic) and theequipment for private inseminator networks at the township and village levels (smallcontainers and Al equipment). A similar setup is foreseen for Siping Prefecture and18 townships and 182 village inseminators. Siping Prefecture would also importeight bulls. In Liaoning province, the project would rehabilitate the existing building inShenyang and finance a center with six imported bulls, imported semen and a smallnumber of embryos, a new LN plant and semen processing and laboratory equipmentthere. The Shenyang investment would only cover the main station. Assurances wereobtained at negotiations that the prices of (a) semen produced by the project's Al stmonswould be gradually increased each year to arrive atfidl cost recovery by June 30, 1998,and (b) goslings produced by the Changtu hatchery would be charged atfidl cost.

3.45 Extension and Training. The project would support the tension programin the participating counties in both provinces, paying particular attention to the morerecently introduced productions, such as deer farming, cattle fattening, sheep productionand grassland improvement. In total, it is estimated that about 12,300 farmers wouldreceive training. Particular attention would be paid to include a high share of women inthe extension effort. The project would finance a video set and a slide projector, a copierand a vehicle for each participating county. Domestic staff training would cover 220township livestock extension agents in breeding and fattening techniques, and 330 villageAI technicians, mostly privately operating, in ardficial insemination techniques.

3.46 The overseas staff training in Liaoning would be to observe improvedgenetic and AI management schemes for cattle and training in embryo transfers. Julin staff

- 30 -

study tours would be conducted in three separated trips: to review current sheepimprovement scheme, to get acquainted with treatment of crop residues under coldtemperature and to observe new techniques in fodder production an deer farming.

3.47 Research. The project would finance livestock research under the followingtopics: (a) compaison of different grassland improvement techniques (including lowinput), an the effect and cost effectiveness of different fertilizer levels and frequencies ongrassland yields. The monitoring of natural and improved pastures in the region (soil,plant composition and herbage intake); (b) evaluation of performance and quality ofdifferent beef cattle crosses; (c) a study of the nutritive value of maize stover and itstreatment with different sources of urea and ammonia, and optimum utilization of proteinsources in the use of corn stover; and (e) the use of amaranth, especally in goose andcattle fattening. In addition to the inputs for these specific research projects, the projectwould finance the purchase of one vehicle and some laboratory equipment for more generaluse. This research program addresses the main technological problems facing livestockproduction under the project. Regular involvement of the PMOs in monitoring progress,to ensure a fast transfer of the results of the results to the project farmers would beorganized.

Aquaculture Development

3.48 Shrimp Culture. The project would rehabilitate in Dawa county about1,333 ha of shrimp ponds (about 400 ponds), upgrade pumping stations and mechanicalyexcavate existing ponds to a depth of 3 meter (m), with a f d of I m above thenominal full water level. The inlet and outlet water control structures would be modifiedand upgrded. The pond dikes would have a slope of 1:2.5 and a crown of about 4-5 m.Water to the growing ponds would be from the sea, supplied totally by pumping into arservoir and then to the supply canals. Pumps and other equipment to increase capacityto 115-140 m3/s would be provided to the pumping stations. Drainage to the sea wouldbe by gravity flow, and drainage water would not be allowed to mix with inflowing water.Work boats and utility truckss would be provided.

3.49 Bay Scallop Culture. The proposed project would establish about 725 haof scallop fields where sea conditions and tidal currets are favorable, in Xincheng(375 ha) and Suizhong (350 ha). Scallops would be raised initialy in purse-type, plastic-screen cages. Final cultivation would be in lantern-type cages suspended in the sea byrafts made of polyethylene ropes. A total of 14,500 rafts would be constructed, eachsupporting 80 breeding cages. Materil for the construction of the rafts would include 8and 18 mm polyethylene ropes, mending twines, wood stakes, plastic floats and nursing(purse-type) cages, and two types of growing cages, each with 10 compartments. Thenecessary production materials would include around 480 tons of polyethylene ropes of 8and 18 mm thickness, 22 tons of mending twine, 1,100,000 plastic floats, 2,000,000nursing and growing cages and 29,000 wooden stakes. The project would also finance 32transportation boats, udlity trucks, water analysis equipment, storage facilities, officebuildings, and working capital to purchase spats and meet other expenses for one croppingseason. Provision has also been made for site investigation, training and management.

- 31 -

3.50 Hard and Short-Neck Clam Culture. About 13,333 ha of intertidal areasalong the coast would be developed for hard and short-neck clam culture in five counties(3,333 ha in Dawa, 3,333 ha in Panshan, 3,333 ha in Jinxian, 2,000 ha in Xincheng, and1,333 ha in Suizhong). The project would finance the preparation of the growing areasand construction of boundary netting, offices, dormitories, storage facilities and broodstock ponds. Funds would be provided for the purchase of wood stakes, brood stocks,laboratory equipment and wallie-tallies. Necessary materials would include polyethylenenetting, wood stakes and brood stocks. The project would also finance a number of workboats and utility vehicles. Provision has been made for initial investigation, management,training and working capital until the first harvest.

3.51 River Crab Hatchery. The project would construct a river crab hatcheryof 1,600 ml capacity at Panshan County for the production of 800 kg (200,000 pieces/kg)of river crab larvae. This would consist of a series of indoor concrete tnks for broodstock, artemia, and algae culture (total 3,520 mi). The building for the ponds would bearound 2,300 n2, and for a boiler room and an engine room (300 m2). Other civil workswould include a 400-m boundary wall and around 4 km of internal roads. The hatcherywould be equipped with aeration, water-heating pipes, water heaters, pumps, a stand-bygenerator, a transformer, electrical supply lines, a freshwater deep well and miscelaneousequipment. Funds have been provided for the purchase of vehicles, investigation, designs,management, training, installation of equipment and working capital for one productioncycle. The hatchery wiU operate for three months from March to May. During the wintermonths, tanks would be used to winter over brood stock.

3.52 River Crb Culture. The project would develop 134 ha (in 3.3 ha ponds)for the rearing of river crabs. A part of the ponds would be used to rear the larvae to thebutton or juvenile crab (100 pieceslkg) stage, for sale to farmers who are engaged ingrowing the button crab to commercial sizes (10 pieces/kg). Some would be stocked ina reservoir to grow into commercial size. The project would finance pond excavation andconsolidation (40 ponds), supply of 80 inlet and outlet sluice gates, the construction of anoffice building, a store, a dormitory and a feed-processing room. Equipment and mateialto be provided would include pumps and diesel engines (10 sets), four sets of feed-mixingmachinery, and around 40,000 e 2 of polyethylene sheeting to line the slopes of the pondsand reservoir. The project would also finance the purchase of five vehicles and one boatfor use in the reservoir. Provision has been made for site investigation, management,training and working capital requirements for the first crop.

3.53 Shellfish Hatcheries. The project would finance an expansion of an existing

hatchery by 650 me capacity water body in Suizhong to produce around 200 million scallopseeds per year. Facilities constucted would include hatcheries, office buildings, otherbuildings of around 2,800 m2 in Suizhong for miscellaneous uses, facilities for spatproduction and algae (feed) culture, heating and sedimentation tans, mixing andpurification tanks, and water supply, drainage and electrical systems. The project would

- 32 -

also finance the purchase of miscellaneous equipment such as boilers, aerators, heaters, agenerator, a transformer, pumps, piping, laboratory equipment, vehicles, nets, ropes, etc.Provision has been made for working capital for a one-year production cycle, investigation,designs, training and management. The hatcheries are expected to operate for about90 days per year. Some tan would be used for algae culture and to hold brood stock ofscallops and seed clams for the coastal shellfish program.

3.54 Freezing, Cold Storage and Processing Facilies. The project wouldfince the estblishment of two fully equipped freezing and cold storage plants, each of500-ton storage capacity, in Suizhong and Jinxian, and rehabilitate th existing cold storein Xincheng to intenational standards. Each cold storage facility would be a two-stagecompressed ammonia plant using pumped liquid ammonia for distribution to evaporatorsat the low and intermediate pressure sides. Plant operating temperature would be -30°C.Each facihity would be equipped with a 20-ton/day blast freezer, chill storage, a 500-kgplate freezer, an ice plant and storge. The main equipment to be installed would be thelow- and high-stage compressors, horizontal intermediate coolers, evaporative condensers,horizontal ammonia receivers, oil/water separators, cooling towers, air cuains, stand-bygenerators, transformers, pumps, an electric-supply control panel, pipes, valves, automaticcontrol gauges, special tools, accessories, and freshwater supply and drainage systems.Plant buildings would have a total area of around 4,100 n2, of which around 1,800 m2

would be for the cold store and processing area and the rest for the engine room, officeand miscellaneous service areas. Ihe handling equipment would include aluminum tables,containers, plastic boxes, trolleys, blast freezing trolleys and trays and weighing scales.The project would finance the purchase of utility trucks and refrigerated and/or insulatedvehicles. Funds would be provided for investigation and designs, management, trainingand working capital.

3.55 Tining. A program of local training would strengthen the skills of farmtechnicians, managers, hatchery operators, farmers, and fish processing technicians.Twenty-day short courses to upgrade skills would be given to approximatdy 1,273technicians and workers. This would include 100 persons for shrimp production,200 persons for shellfish production, 40 persons for river crab production, 50 persons forriver crab hatchery, 533 persons for scallop production, 50 persons for scallop hatchery,and 300 persons for aquaculture handling, freezing and processing. The project would alsofinance the upgrading of 26 technicians and would pay for 53 persons on domestic studytours and 12 persons on overseas study tours. The study tour program would be reviewedby IDA.

3.56 Research, Extension and Environmental Monitoring. Although theresearch and extension units at the provincial and county levels are adequately staffed byexperienced peonnel, their day-to-day work program and on-farm adaptive research workand demonstration activities are impeded by the lack of basic laboratory equipment, fieldrecording instruments, office equipment and vehicles. During the implementation of theproject, continuous monitoring of the coastal environment in the vicinity of the project areawould be necessary. The project would provide laboratory and analytical equipment, fieldobservation and monitoring equipment, microcomputers, and office equipment and vehicles

- 33 -

to enable the Bureau of Aquatic Products, Marine Research Institute and extension servicesto function more effectively and conduct regular monitoring of the environment,particularly in the project areas.

Agroprocessing Component

3.57 The project would include 14 agroprocessing subprojects (eight in Liaoningand six in Jilin). Financing would cover expenditures for land purchase, buildings,equipment, vehicles and training. The project would also provide incremental workingcapital for each subproject and investment to mitigate environmental problems (wastewaterand effluent treatment). All agroprocessng subprojects are designed to generate value-added and employment in the project areas.

3.58 The subprojects in Liaoning are summarized below:

(a) Dongfangshen Apple Juice Plant. A new plant to process 33,500 tons/year of apples and pears into 7,500 tons of juice concentrate for export.

(b) Xincheng Peanut Protein Plant. Construction of a new plant to process15,000 tons/year of unshelled peanuts into 3,060 tons/year of proteins and3,520 tons/year of edible refined peanut oil. It would utilize shells andfibrous residue to produce 10,500 tons/year of ruminant feed.

(c) Liaoyang Hawthorn Pectase Plant. A new plant to produce 425 tons/yearpectase enzyme from 3,300 tons/year of hawthorn fruit.

(d) Kaiyuan Hawthorn Processing. Construction of a new plant to process5,700 tons/year of hawthorn fruit into 8,500 tons of extract concentrate,beverages and jam.

(e) Xifeng Wild Mushroom Processing. A new plant to process 2,250 tons/year of wild herbs and mushrooms into 1,500 tons of preserved products,mainly for export.

(f) Kangping Furfural Plant. Construction of a new plant to produce1,000 tons/year of furfural, a liquid aldehyde used especially in makingfuran or phenolic resins and as a solvent, from 12,000 tons of corn cobs.

(g) Tai An Dogbane Paper Mill. Construction of a new paper mill to produce23,000 tons/year of high-strength corrugated (fluted) paper from16,800 tons/year dogbane and 33,000 tons/year rice straw as a substitute forimports.

(h) Longeheng Sesame Oil Plant. A new vegetable oil mill to replace anexisting obsolete plant, to process 5,000 tons/year of sesame seed into2,385 tons of high-grade sesame oil and 2,116 tons of oil cake.

- 34 -

3.59 The subprojects in Jilin are summarized as follows:

(a) Lishu Anhydrous Alcohol Plant. Construction of a new plant utilizing135,000 tons of maize to produce 30,000 tons/year of anhydrous alcoholand 31,500 tons/year of dry grains for export.

(b) Shuangyang Rice Straw Paper Mill. Construction of a new plant utilizing34,000 tons/year of waste rice straw to produce 17,000 tons of paper for thecorrugated board industry.

(c) Jhial Tannery and Leather Manufacture. Construction of a new tanning,leather dressing and garment manufacturing plant to process 1.3 millionskins and hides into 1.65 million m2 of leather.

(d) Da An Bone Gelatin Plant. Construction of a new plant to utilize6,750 tons/year of mixed animal bones to manufacture 750 tons/year ofbone gelatin for various applications in the pharmaceutical, manufacturingand food industries.

(e) Qian An Flax Textile Mill. Expansion of an existing flax-spinning millincluding new scutching yards, and a flax-weaving mill. The new facilitieswould use 12,500 tons/year of raw flax and produce 330 tons/year of yarnand 1,750 tons/year of flax tow.

(f) Yushu Modified Starch Plant. Extension of an existing com starch plantinto product diversification by converting 10,000 tons/year of native comstarch into various modified starches.

Institutional Support

3.60 The project would strcngthen the PMO, provide taining and technicalassistance, and support environmental protection programs as follows.

3.61 Project Management Offices. The project would finance construction ofthe provincial management offices in Liaoning and Jilin Provinces, equipping them with

furniture, teaching equipment and vehicles. The project would finance an expansion ofexisting government buildings to accommodate project offices at the municipal and countylevels. Each of these offices would be equipped with a fax machine, a copier, a computerand printer, and office furniture. A twin-cab would be provided for each participatingcounty.

3.62 Training and Technical Assistance. In addition to training programsalready included in each individual component above, the project would provide trainingfor 510 personnel for short periods in project-related subjects, including engineeringmanagement, financial administraon, accounting, auditing, material procurement, loanassessment and project appraisal. Overseas waining and study tours would also be financed

- 35 -

for 50 project staff. Assurances were obtained at negotiations that training would becarried out in accordance with plans satisfoctory to IDA and the PMO would furnish toIDA for its review and approval a plan for domestic and overseas training and study toursfor implemenation during the subsequent calendar year by October 31 of each year duringproject unplementation. The training plans would provide that participants would beexpected to staff from the project and about 40 percent would be female, and aftertraining, staff will not be moved to other positions of which they are not tmained.

3.63 Environmental Programs.

(a) Environmental Monitoring in Bo Sea. The National Marine EnvironmentMonitoring Center in Dalian assisted Liaoning Province in assessing thepotential environmental impacts of the proposed Bo Sea shellfishdevelopment and the risks to shellfish from the environmental hazardsexternal to the project. The investment proposed under the project wouldnot have any negative impacts on the environment but rather is at risk fromthe combined effects of petrochemicals and industrial and agriculturalactivities in the catchments of the main rivers flowing through Liaoning intothe sea. During appraisal, the proposed project sites along the Wuli Riverwere rejected. The sites included in the project are free of contaminationand suitable for shellfish production. To minimize the risk of possiblefuture contamination, an environmental monitoring program would beinanced under the project. It would be subcontracted to the Liaoning

Marine Monitoring Institute with the supervision of the National MarineEnvironment Monitoring Center. The program would include monitoringand testing for heavy metals, petroleum pollution, biochemical oxygendemand (BOD), and ammonia/nitrogen. In addition, testing for humanwaste contamination (coliform bacteria) in both culture areas and shellfishis included in the program and provision has been made for monitoring levelof toxic algae, and conditions that give rise to red tide.

(b) Pesticide Management. The proposed pest management strategy includesagricultural management techniques, biological management, manualmethods and the use of agrochemicals. The project would strengthenintegrated pest management (IPM) programs, support tWaining and provideequipment. The General Station of Plant Protection, Ministry ofAgriculture, would assist in the design of the IPM program. Potentialdamage from plant protection chemicals would also be effectively controlledby various measures. First, assurances were obtained at negotiations thatall agrocheinicals financed under the project would be approved by IDA andstored, handled, distributed and used in accordance with guidelinesacceptabk to IDA. Second, most of the plant protection chemicals to beprocured under the project are degradable and, in quantities to be used,would not have significant negative effects on the environment. Sprayingpersonnel would be trained in safety measures. Third, the IPM approachwould be initiated in a pilot area and gradually extended to other project areas.

- 36 -

(c) Environment Management and Monltoring Plan for AgroprocessingPlants. Environmental impact statements have been prepared by theProvincial Technical Research Institute for review by specialists. Thereports estimated the pollutant loadings (air, water and solid waste) andmade recommendations on treatment systems required to meet relevantnational and provincial emission standards. Each plant has incorporatedwastewater trment in its plan. The optimum treatment systems for liquidwaste in the cold climate were selected during appraisal. In addition, bothprovinoes have prepared environmental management and monitoring plansthat will permit the checking of pollution-control designs, supervision ofconstruction and monitoring throughout the project. Equipment, computers,training and some operating costs would be provided under the project.Assurances were obtained at negotiatzons that (a) Jilin and Liaoningprovincial environmental protection bureaus (PEPBs) would approve thefinal designs of the treatnentfacilitiesfor aU agro- and livestock processingplants financed under the project prior to constuction and (b) theseenterprises would inplement and maintain effluent monitoring and treatmentsystems according to the final designs approved by the PEPBs.

D. STA OF PREARATIoN

3.64 Preliminary designs have been prepared for all the components. Foragroprocessing, feasibility studies have been carried out on all of the processing plants, andconceptual designs are generally at an advanced stage. Detailed plant and constructiondrawings would be produced by architects and plant engineers as part of the project, andprovision was made for these activities within the individual plant investment costs.National or provincial design institutes, which have been identified by the PMO, would bersponsible for the development of technical specifications in cooperation with thetendering agencies.

E. IMPLIMEATnON SCHEDULE

3.65 The project will be implemented over a period of five and a half years.Irrigation and drainage works, field crop development and livestock would take the fullfive years to complete. Orchard development and aquaculture activities would take fouryears. Construction and commissioning of the agroprocessing plants would be completedduring the first three years of the project. Detailed designs and preparation for biddingdocuments would be prepared under retroactive financing, and international competitivebidding (ICB) would start after project effectiveness. Each plant has been individuallyscheduled. The proposed schedule is feasible and consemve, considering thatimplementing agencies are already established with experienced staff. A detailedimplementation schedule for all components is given in Chart 3.

- 37 -

F. Cosr EsrmAiS

3.66 Total cost of the project is estimated at $382.3 million with a foreignexchange component of $186.8 million, 49 percent of the total. Project cost does notinclude any significant tax element, since civil works and buildings are essentially free oftax, and imported materials and equipment are exempt from duties. Cost estimates arebased on quantities derived from the preliminary designs (para. 3.64) and from unit pricescurrently prevailing for similar construction works and materials in the provinces and fromprice lists of local and overseas manufacturers of machinery and equipment. Physicalcontingencies, equivalent to $21.5 million, have been included at the rate of 10 percent forcivil works, materials, machinery and equipment and 0 percent for labor and landacquisitibn/crop compensation. Price contingency estimates total $52.2 million. Pricecontingencies, for costs expressed in US dollars, are based on annual intemational priceescalation rates of 3.4, 2.9 and 3.0 percent from 1994 to 1996, and 2.7 percent from 1997to 1998. Price contingencies for costs expressed in yuan, are based on annual domesticprice escalation rate for all goods and services, except construction and labor, of 10.0, 9.0,8.0, 7.2 and 6.5 percent from 1994 to 1998. Price contingencies of 20, 12 and 10 percentfor 1994-96 and 8 percent for 1997-98 are used for construction. Price contingencies of18, 15 and 12 percent for 1994-96 and 10 percent for 1997-98 are used for labor costs.Estimated costs are summarized in Table 3.1 and detailed in Annex 2.

Table 3.1: PRoJEcr Cosr SummARY

Ym '00Wua0 S MC % PFrign S TSawco,oas,um LOWa F-ssip Toal L4oca Fomaiga Tota Ecbmaqp Dans Cogst

Irigation & Dninage 147,416.4 10,1933 255,609.7 16,9444 12,436.0 29,3ta4 423 9.5FsiW Crop Devlopmat 41,107.9 146.451.0 17,558.9 4,725.0 16,U33.4 21,553.5 73.1 7.0Orchud Dcvbopmast 155,292.1 106,527.7 263,319.3 17,39.7 12.474.4 30,324.1 41.1 9.5Soil & Wter Cowervatioa 23,334.5 11,321.9 34,656.4 2,632.1 1,301.4 3,9 335 32.7 1.3Livesoclk Developmsat 342,274.5 172,34.0 515,07t.5 39,341.9 19,362.5 59,204.4 33.5 19.2Livestock Procssing 138,316.1 140,934.2 279,250.3 15,t9t.4 16,1993 32,097.7 50.5 10.4Agroprocessixg 321,911.7 604,912.0 926,323.7 37,0013 69,530.1 106,5313S 65.3 34.5Aqu-etw Dsvelopnt 99,3523 77,303.L 177,161.1 11,4773 5,316.1 20,3633 43.6 6.6Project Manpaes 14,609.4 31,154.0 45,763.4 1,679.2 3,530.9 5,260.2 63.1 1.7

Totg Bane Cow 1.2U.,114 9 1.401.606.9 2.685.r21.8 147.599.4 161.104.2 308fi703.7 2 100.0

Pbysical Coaliecsa 63,354.7 123,315.7 136,670.4 7,212.1 14,174.2 21,456.4 66.1 7.0Price Caaqnsas 353,375.5 100,630.0 454,005.5 40,617.9 11,566.7 52,14.5 22.2 16.9

Totg Pbruiec C o 170,4.11625.552.6 3,326.397.7 195.499.4 186.U5.1 392.344,6 HA 13.

G. FINCaNG

3.67 Bank Group financing would be an IDA Credit of SDR 148.5 million($205 million equivalent) and would cover 54 percent of total project costs. The remaining46 percent would be financed by provincial, prefecture/municipal and county governmentsand beneficaries. The contributions from each source are as follows:

- 38 -

S million

(a) IDA Credit 205.0(b) Provincial, prefecture, municipal and

county governments 62.6(c) Commercial banks 57.8(d) Enterprises and farmers 56.9

aIl 23

3.68 The governments at each level would be responsible for providingcounterpat funding to finance project activities in their junsdictions. These funds wouldcome from budgetary allocations according to each year's work plans. To ensure thatadequate counterpart funding would be provided in a timely manner, assurances wreobtained at negotiations that Liaoning and Jilin would provide to IDA for eachmunicipality, prefecture and county in the project a detailed statement of approvedbudgetary allocations by April 30 of each year.

H. PROcuREmEWT

3.69 Procurement arrangements are summarized in Table 3.2.

3.70 Works. All the works in the project are too small for ICB. They wouldinclude many small land development and earthworks for irrigation and drainage canals andshrimp ponds, would be scattred over a wide area and scheduled over the life of theproject. None could be packaged into contracts exceeding about $2.0 milion and would,therefore, not be of interest to foreign contractors. Approximately 70 percent of the work(S42.9 million) would be procured on the basis of local competitive bidding (LCB)procedures acceptable to EDA. The remaining works ($18.2 million), consisting of manysmall canals, drains, land development works and minor site preparations, would normallybe done by off-season labor at the village, township and county levels. The works wouldbe too small (costing less than $200,000 equivalent per contract) and widely scatteredthroughout the project to be of interest to contractors. They would therefore be undertakenthrough force account managed by county engineers in coordination with provincial bureaustaff.

3.71 Goods. Project goods consisting of machinery, equipment, vehicles andmaterials are estimated at $210.9 million. ICB procedures would be used foragroprocessing equipment, vehicles, large pumps and motors, fertlizers and some of theconstruction materials, for a total of $99.5 miDion or 47 percent of all goods. Domesticmanufacturers would be allowed a margin of preference on ICB equal to 15 percent of thec.i.f. price of imported goods or the actual custom duties and import taxes, whichever isless. Passenger vehicles estimated at $0.9 million would be provided by the provincialgovernments. Specialized vehicles and equipment, computer and office equipment,agopr g equipment (such as an IQF machine), pesticides and livestock supplies upto a value of $5.4 miDion would be procured under contracts awarded through LimitedInternational Bidding (LIB). The small pumps, motors, irrigation, aquaculture, and

- 39 -

Table 3.2: PRocuEMENT PROFILE($ million)

Procurement methodICB LCB Other NIF Total

Land acquisition & - - - 3.6 3.6crop compensation (0-0) (0-0)

Works - 42.9 18.2 - 61.1(20.6) (8.8) (29.4)

Machinery & equipment 60.0 24.8 28.5 - 113.3(55.8) (19.0) (18.3) (93.1)

Vehicles 7.4 - 1.5 0.9 9.8(6.3) (1.1) (0.0) (7.4)

Materials 32.1 21.0 34.7 - 87.8(28.9) (16.4) (22.7) (68.0)

Overseas training & technical - - 1.6 - 1.6assistance (1.6) (1.6)

Domestic training and research - - 5.5 - 5.5(5.5) (5.5)

Design, engineering & - - - 33.2 33.2management (0.0) (0.0)

Labor - - - 20.0 20.0(0.0) (0.0)

Working capital - - - 46.4 46.4(0.0) (0-0)

Total 29 AU 87 .0 104 382A3(91.0) (56.0) (58,08 (Q,Ql 05.08

Note: (1) Figures in parentheses represent the amounts financed by the IDA credit,including contingencies.

(2) NIF: Not IDA-financed.(3) Other: Other procurement methods include force account for works, direct

purchase and shopping for small equipment and materials, LIB forspecalized vehicles, equipment and pesticides, training and consultantcontracts.

- 40 -

electrical equipment, pipes, farm and livestock tools, small processing equipment, materialsand supplies, costing about $45.8 million (22 percent of all goods), would be dispersed inlocation, spread over the project period and subject to continuing after-sale servicerequirements to the extent that none of them could be grouped in packages of more thanS200,000 and would therefore be unliely to be of interest to foreign suppliers without asignificant local presence. They would, therefore, normally be procured under contractsawarded on the basis of LCB. Because of small size of the packages (due to variedrequirements and high transport costs), miscellaneous small equipment, supplies,furnishings and small production inputs costing less than $50,000 per package, and notexceeding $29 million in aggregate, may be procured under contracts awarded on the basisof comparisons of price quotations solicited from at least three qualified suppliersaccording to local shopping procedures described in the Bank guidelines. Some goods,such as saplings, seedlings, livestock and aquaculture breeding stock costing about$30 million would in practice be available from few sources in any particular area, oftenbecause of high transport costs. They may therefore be procured through local shoppingprocedures or direct purchase, in the latter case if there is only one source available in thearea. A detailed listing of procurement arrangements for goods can be found in Annx2Table 5 (see also para. 3.75).

3.72 Training and technical assistance would cost a total of $1.6 million.Domestic training and research would cost $5.5 million. Employemnt of internaionalconsultants would be in accordance with Bank Group Guidelines for the Use ofConsultants. Land acquisition, crop compensation, administration, engineering, design,management, labor and working capital, which amount to $103.2 million, would be locallyfunded.

3.73 IDA Review. All procurement packages for works and goods in excess of$500,000 would be subject to IDA's prior review. That would cover about 76 percent ofthe works and about 83 percent of the goods by value under ICB and LCB procurement,and would consist of approximately 135 contracts. Other contracts would be subject toex-post review by IDA supervision missions. In addition, considering the large numberof contracts to be procured under LCB procedures, the PMO would use standarddocuments approved by IDA for all these contracts. All contracts for consultant serviceswould be subject to IDA's prior review and approval in accordance to IDA guidelines(pam. 3.72). The procurement schedule (Chart 4) gives detailed projections on how andwhen the 28 large ICB packages for goods would be put to bid. The InternationalTendering Company (ITC) of China National International Technical Import and ExportCorporation would be the procurement agent.

L DIBuRsEmES

3.74 Disbursements for construction and agroprocessing equipment, machinery,vehicles, and all imported items under ICB procurement, would be made at 100 percentof the foreign exchange cost, or 100 percent of the ex-factory price for locallymanufactured items, or 75 percent of local expenditures for other items procured locally.Disbursements for training, study tours and consulting services would be at 100 percent

- 41 -

of total expenditures. Disbursement against civil works would be 45 percent of totalexpenditures for Liaoning and 50 percent for Jilin, excluding costs of constructionmaterials procured through ICB.

3.75 Disbursements would be made against statements of expenditure (SOEs) inthe case of overseas training, study tours and contracts for goods and works each costingless than $400,000, and work on force account. Disbursements for all work carried outunder force account would be made against statements of physical progress achieved in therespective sites, at unit prices agreed with IDA at the start of implementation and reviewedannually. In order to provide for efficient disbursements, the Jiln and Liaoning BOFswould open Special Accounts in banks acceptable to IDA, with a ceiling of $13.0 million($7.5 million for Jilin and $5.5 million for Liaoning). Applications for replenishment ofthe Special Accounts would be submitted monthly, or whenever the Special Account isdrawn down to 50 percent of its initial deposit, whichever comes first. Retroactivefinancing of up to $14.5 million would be made against expenditures made between July15, 1993 and the date of signing of the Development Credit Agreement.

3.76 It is estimated that the project would be completed by December 31, 2000and that the closing date would be December 31, 2001. Disbursement experience in Chinahas been favorable and better than the Bank Group average. The project disbursementprofile is essentially in line with that for specific investment loans in China. Estimatedschedules of disbursements are given in Annex 2, Table 6.

J. Accoums A AuDris

3.77 Records of expenditures on civil works, equipment and materials would bemaintained by the county PMOs. These records would be forwarded to the prefecturallmunicipal PMOs for submission to the provincial PMOs for review. The provincial PMOswould be responsible for submitting the provincial project consolidated accounts andreports to IDA. Assurances were obtained at negotiations that the provincial PMOs wouldmaintain consolidated accounts for all components for annual auditing by independentauditors acceptable to MDA and that the audited accounts together with the auditor's reportwould be submitted to IDA within six months of the close of each financial year. Theaudited accounts would include the special account and details of withdrawals from thecredit account made on the basis of SOEs and the auditors' opinions as to whether suchwithdrawals were for expenditures eligible for reimbursement by IDA. In the case ofSOEs, the audit report would contain a separate opinion by the auditor as to whether theSOEs, submitted during the fiscal year, together with the procedures and internal controlsinvolved in their preparation, can be relied upon to support the related withdrawals. TheState Audit Administration would be acceptable to carry out the auditing of the project,until independent auditors with qualifications acceptable to IDA are proposed and agreed.

- 42 -

K. ENvIRoNMErAL IMPcAIs

3.78 All project components were envirnmentally screened by technicalspecalists from the two Provincial Environmental Protection Bureaus. The screeningreports were reviewed by the Bank and the results were substantially agreed with. Thereports identified components which required further analysis of should be subject toenvironmental impact analysis. It was recommended that all agroprocessing componentsshould be subject of individual EA reports. Additional assessments commissioned covered:(a) promotion of Integrated Pest Management and improved education and technicaltraining on agrochemical handling practices for the apple-pear component in Jin Province;and (b) marine water, sediment and biological quality monitoring requirements to safeguardproposed aquaculture investments in 1iaoning Province. Both provinces are preparingen'ronmneal managvnent and montonng plans which will permit design checling forpollution control systems, construction supervision and performance monitoring for theduration of the projec. The plans would be submitted to IDA for review by December 31,1994.

3.79 Some project components would have positive effect on the environment.Others would generate pollutant emissions which would require management and treatment.Tne irrigation and drainage component would reduce ill effects of drought, flooding,waterlogging and salinity on about 48,600 ha. The introduction of soil and waterconservation measures in the 11 micro watersheds would help to stabilize the sandy soiland improve the quality of the land. Successful implementation would provide a modelfor management of soil and water in some other watersheds. The development of20,000 ha of marginal hillside waselands for fruit would help to control soil erosion andimprove water retentiLon and soil fertility. The increased production of livestock manurewould improve soil stucture and fertlity and help to reduce the amount of chemicalfertilizer used. Possible adverse environmental impacts from agrochemicals and theeffluent discharged from agprocesg plants have been minimized by careful monitoringand specific programs designed under the project (pam. 3.63).

3.80 The project sites would be sread out in 612 townships and 40 counties ofthe two provinces. The project development would be mainly in wasteland, barren land,farmland or on existing sites. The new land acquired for the project is very small, andthere has been no involuntary resettlement. Project irgation would be mainlygroundwater development and the rehabilitation of eisting irrigation works, neither ofwhich need new land. The area of farmland acquired for irrigation is only about 300 haand did not contain any houses or other structures. The farmers whose land has been takenwere compensated with the value of three years' lost crops and given new land withoutcharge. Orchard development would be on marginal hilly land. Aquaculture developmentwould mainly be in the bay or in low-lying mudflat waste lands in coastal areas. Livestockdevelopment would mainly be in household compounds and would not require additionalland.

3.81 In the agrop ssing and livestock processing, 13 out of 26 factories haveland requirements. Five factories require new land and another eight additional land. In

- 43 -

Jdlin, 64 ha of agricultural land has been purchased at an average price of Y 1,436,600 perha. Crop compensation has varied between Y 8,000 and Y 45,000 per ha. In Liaoning,18 ha has been purchased at an average price of Y 662,700. Crop compensation variedbetween Y 10,500 to Y 22,680 per ha. There are no dwellings on the purchased land,because farmers live in nearby villages away from plant sites. In addition to monetarypayments for the land, the factories would give priority employment to affected farmers(199 persons in Jilin and 98 persons in Liaoning) as workers. This opportunity to movefrom agricultural work to the relative security of full-time industrial employment iswelcomed by the farmers. Letters have been received from each of the county authoritiesdetailing the area of agricultural land that has been purchased and the number of farmerswho have sold their land in order to provide project agroprocessing sites. An assurancewas obtained at negotiations that the Provincial Governments will ensure that any personswho are involuntarily resettled or whose rights to land are compulsorily acquired as aresuk of the project development would be provided compensation for assets, logisticsupport and relocation assistance.

3.82 The project's two surface irrigation schemes (Song Qi and Song Po schemes)draw water from the second Songhua River, which eventually flow into an interationalwaterway (Heilongjiang River). The Bank staff has made an assessment that the projectwould not cause any appreciable harm to other riparians. The two irrigation schemes arethe ongoing schemes. The present water requirement for those two schemes is about50 million m3, and the additional quantity required after expansion and improvement underthe project would be about 62 million in. The estimated long-term average annual flowof the Second Songhua River is 17 billion m3, that of the First Songhua River before jointthe Heilongjiang River) is 74 billion m3 and that of the Heilongjiang River beforedischarging into the sea is 355 billion m3. The 62 million m3 rquired under the projectwould be only 0.36 percent of the Second Songhua River flow and would be negligible forthe First Songhua and the Heilongjiang River. Since the additional water requirement ofthe project would be small, it is not expected to have adverse impact on quantity andquality of water flows to other riparians. However, pursuant to the requirements of OD7.50, the Chinese Government has notified the relevant ripanan state (Russia) of theproposed project.

- 44 -

4. ORGANIZATION AND MANAGEMENT

A. PROtEcr ORGANZTnoN

4.1 The Governments of Liaoning and rJlin Provinces would be responsible foroverall project implementation. Following generally successful experience in similar Bank-assisted projects currently beng implemented in other provinces of the country, theprovincial governments have adopted a three-level institutional arrangement to implementthe project. This approach will include provincial, prefecture/municipal and countyinvolvement to ensure efficient execution of the project and coordination of activities withconcemed govenment departments and agencies.

4.2 Project Leading Groups (PLGs). The provincial PLGs will be chairedby the Vice-Governors responsible for agriculture. They comprised senior officials fromthe provincial bureaus of water conservancy, agriculture, livestock, fisheries, planning,finance and environment protection. Senior staff from ABC, the Women's Federation andothers are also represented in the group. The provincial PLGs would be rsponsible forformulating project plans and policies, coordinating and monitoring implementation, andresolving any procedural or legal issues related to funding arrangements and land matters.They would assume responsibility for ensuring provision of adequate counterpart funds.Assurances were obtained at negotiations that the Provincial PLGs would be maintainedwith composidon and responsibilides acceptable to IDA.

4.3 Project Management Offices (PMOs). The provincial PMOs (PPMOs)would be staffed with trained and qualified technical, administrative, financial andmanagement officers and headed by a Director. Most appointments have already beenfilled with competent staff seconded from government departments. The PPMOs would(a) draw up detailed annual work programs and budgets for the project; (b) review andapprove lower-level PMO work plans; (c) monitor the physical and financial progress ofthe project; (d) coordinate and supervise project implementation; (e) review and approvetechnical specifications for agroprocessing, agroindustry, irrigation and drainage, and thedevelopment of agricultural, livestock and aquatic products; (f) liaise with the central andprovincial agencies regarding project implementation (e.g., procurement, planning, finance,markceting, etc.); (g) prepare detailed project accounts, arrange audits and write progressreports; and (h) submit withdrawal applications to IDA. At lower levels the PMOs wouldassist agencies or entities involved in implementing project components and would liaisebetween the project and various technical and financial institutions that support the project.Assurances were obtained at negotiations that the provinces would maintain the PMOs withfunctions and responsibilities acceptable to IDA, staffed at all time by qualified andexperienced staff in adequate nwnbers, with arrangements for all technical decisions andproposals to be revewed by the relevant technical bureaus.

- 45 -

4.4 The provincial technical bureaus (water conservancy, agriculture, livestockand fisheries) would set up project offices (PO) within their bureaus to originate andreview technical aspects of the project. These POs would review technical standards forthe design, construction, operation and maintenance of project works; oversee the technicalquality of project works; and prepare technical specifications for procurement tendersunder the project.

4.5 A similar structure of PLGs, PMOs and POs would be established in theprefectures, municipalities and counties participating in the project.

4.6 Technical Committees. Technical committees have been established withspecalists from all components to provide annual, independent feedback to thegovemment, as well as new technology to farners. An annual meeting would be heldaltermating between Jiln and Liaoning.

B. MANAGEMENT

4.7 Ihere would be two PPMOs, one for Liaoning and one for Jilin Pfovinces.The PPMO staff would consist of a director, four deputy directors and about 20professionals including irrigation engineers, agronomists, livestock specialists, fisheryspecialists, economists and accountants, who would be drawn principally from the technicalbureaus. The director and two deputy directors would serve on a part-time basis as theirsubstantive posts are with the Provincial Planning Commission (director and one deputydirector) and the Provincial Finance Bureau (one deputy director). The rest of the staffare employed on a full-time basis. Each participating municipality and county PMO wouldbe similarly staffed with personnel drawn from the bureaus of planning, finance, waterconservancy, agriculture and animal husbandry, and fisheries.

4.8 Construction of the project's tubewells, drains, canals and control structureswould be largely contracted to domestic construction companies under LCB procedures.Construction contracts would be signed between the construmcion companies and the projectunits responsible for contract management. County governments would hire local farmlabor to carry out earthworks, erect small stuctu and land leveling by force account.Construction of buildings and minor civil works under the agriculture, livestock andaquaculture components would be undertacen by enteprses through local contractors ordirect labor contracts.

C. ENVIRONMTETAL MON1TORING AND MANAGEMEN

4.9 Environmental Management Units will be established within each PPMO.The principal responsibilities of the Centers will be to: (a) management approvalprocedures for detail designs of emission control systems through the Provincial EPBs;(b) supervise commissioning of pollution control facilities to ensure that they areconstructed and performing in accordance with designs; (c) undertake ongoing emissionmonitoring and ambient environmental monitonng; and (d) provide training to factorytechnical staff and EPB officials in operation and monitoring of pollution control systems.

- 46 -

Assurances were obtained at negotiations that allproject acntives conform to Nanonal andProvincal environmental standards and guidelines satisfactory to IDA, and that PPMOwould inplement their respectve environment management plans for the project as agreedwith IDA.

D. FINANCuL MANAGEMEr

4.10 Flow of Funds. Proceeds from the IDA credit would be onlent by theMinistry of Finance (MOF) to the Liaoning and Jilin governments at an interest rate of5.3 percent, with repayment over 15 years, including a 5-year grace period. The foreignexchange risk would be borne by the provincial governments. Assurances to this effectwere obtained at negotiations. The provincial BOFs, representing the provincialgovemments, would channel these funds to prefectural, municipal and county governments.The county BOFs would pass on part of their project funds to county PMOs formanagement, research, training and extension activities and through the local governmentfinance departments onlend another part for commercial investment to enterpnses andfarmers on terms agreed with IDA. This onlending would be for activities that have beenapprised anid approved by the respective PMOs. Assurances were obtained at negotiationsthat the proceeds of IDA Credit would be made available to farmers and to enterprises inthe fonn of loans bearing interest rates no less than the prevailing rate charged by ABCor other commercial banks acceptable to IDA for similar loans for similar purposes ofsimilar maturity.

4.11 Domestic funds, which account for 46 percent of the project costs, wouldbe contributed by the provincial, prefectural, municipal and county governments andproject beneficiaries. The PMOs would receive their funds through the correspondingBOFs at each level. Funding of a portion of worling capital for processing enterpriseswould be provided by the provincial investment company or commercial banks. Contractswould be signed among the various levels of government (resented by their BOFs) andat each stage of relending operations, indicating the terms of lending and repaymentobligations. A project agreement incorporating all project tenns and conditions would besigned between IDA and the provincial governments. State Council approval of theDevelopment Credit Agreement (DCA) would be a condition of effectiveness of the Credit.

4.12 RecoverY of Project Investment. Full recovery of the IDA credit wouldbe the responsibility of BOF in the prefectures, municipalities and counties participatingin the project. Counties would repay their prefectures or municipalities, which wouldrepay their provinces, which, in tum, would repay MOF for the use of the IDA Credit.Domestic funds would be recovered according to the terms and conditions set by the localgovemments and would be returned to the respective county BOFs except funds obtainedfrom the three rvolving funds (pam. 4.13), which would be returned to each revolvingfund to maintain its viability and continuity.

4.13 Under the project, Liaoning and Jilin would each set up three revolvingfunds to be opeated in accordance with procedures satisfactory to IDA: (a) an agriculturalinput revolving fund for procurement of agrochemicals and fuel; (b) a livestock revolving

- 47 -

fund for financing new livestock production activities; and (c) a well development fund fornew wells and water-saving pipes. Assurances to this effect were obtained at negotiations.The interest charged to farmers from the revolving funds would also be at interest ratesno less than ABC prevailing rates for similar purposes and terms.

E. MANAGEmENr OF PRODUCTON AnvrrzEs

4.14 The proposed project offices (at provincial, prefectural, municipal, countyand township levels) of the water conservancy bureau (WCB) would be directly responsiblefor the implementation and supervision of project irrigation and drainage works within theirlevel of authority. As at present, the prefectural and municipal WCBs would beresponsible for planning, designing and constructing new irrigation and drainage systems,programming reservoir storage and release, controlling floods, allocating water to projectcounties, managing main canals, and monitoring the groundwater table and groundwaterquality. The agriculture, livestock, forestry and aquaculture components would beimplemented through existing agencies and management structures, utilizing the mechanismof project management offices for supervision and accounting of project activities.Accordingly, the participating technical bureaus at the various levels would be responsiblefor overseeing production activities throughout the life of the project.

4.15 Fertilizer, pesticides and fuel would be available for purchase throughvarious channels, such as village and township agroextension centers, agromachinerycenters and supply and marketing cooperatives (SMCs). Each project county would berequired to submit an annual agricultural inputs (fertilizer, pesticides and fuel) plan to thecounty PMO showing cropping pattern, cropping area, plowing area, fuel requirement,fertilizer, and pesticide application rates and quantities required. These inputs would beprocured by the project's procurement agent and sold to farmers in the project area. Theagriculture, animal husbandry, forestry and aquatic bureaus would provide technicalextension, improved veterinary and AI services, and training to farmers, herders and fishfarmers.

4.16 While activities under agriculture, livestock and forestry are carried out byindividuals under the household responsibility system, fish farms would be contracted outby the breeding company to groups of households under a production responsibility systemfor operation of single ponds or clusters of ponds. The breeding company would beresponsible for repayment of the project loan. It would supply the participating householdswith all inputs (fingerlings, feed, transport and marketing) and recover its costs from salesproceeds, as well as service fees levied by the company. The remaining funds wouldaccrue to the households as profits. The processing plant, hatchery and other enterprisesare independent opeations.

4.17 Each of the enterprises under the agroprocessing and livestock componentswould be an autonomous unit. Management of the factories would be conducted byprofessional management teams with responsibility for all aspects of company operations.The provincial bureaus of light industry and livestock would be responsible for overseeingtheir opeations.

- 48 -

F. OPERATION AND MAINTENANCE

4.18 Operation and maintenance (O&M) of the irrigation and drainage componentwould be organized and supervised by WCB in cooperation with representatives of farmersand other users. O&M of irrigation and drainage facilities at the county and townshiplevels would be carried out by the county WCBs and the township water managementstations, respectively. The deep wels for the irrigated wheat component would normallybe operated by village enterprises with farmer participation. Since one well would cover10 ha involving about 10 farmers, one of them would be assigned the responsibility ofoperating the well and collecting the necessary fees from other farmers. Day-to-daymaintenance would be carried out by this farmer who would be given initial training in theoperation of the tubewell. More complicated technical maintenance work would be carriedout by the technicians of the water conservancy stations of the concerned townships.

4.19 Annual O&M costs for surface irrigation schemes, including fuel and powercost, repair and maintenance expenses, and administrative expenses, including staffsalaries, would be collected from the farmers. Repair and maintenance work is generallydone during winter. Although annual O&M costs vary with the water source, typical feefor surface irrigation schemes in the project area is about Y 0.016/in3 , which covers about40 percent of the operation and maintenance costs. Assurances were obtained atnegotiations that Jilin would (a) subnmt O&M plans for each irrigation and drainageschemne to IDA for review by June 30, 1996 and (b) reviw the water charges for sufaceirrigation scheams financed under the project by Decenber 31 of each year, with suchcharges revised perodically in order to achieve a kvel sufficient to cover all O&M costsby December 31, 2000.

G. PtoJEcr LAUNCE WoRKiop

4.20 To famiLarize participating staff and initiate implementation, the Bank Groupand local staff would conduct a project launch workshop either in Shenyang or Changchunaround May 1994 for the staff of the provincial, prefectural, municipal and county PMOs.The purpose of the workshop would be to review the total program for implementation andto clarify individual tasks and responsibilities at each level. Topics to be covered wouldinclude procurement and disbursement procedures, project financial management,monitoring and evaluation, and environmental impact assessment.

H. MONTORING, EVALUAnON AND REPORIG

4.21 The provincial, prefectual, municipal and county PMOs would monitor theproject's progress and evaluate the overall impact of the project and the economic andfinancial benefits of each component. The county PMOs would keep a current account ofphysical and financial progress of each project component. Physical indicators wouldinclude such items as ldlometers of canals and drains constructed, number of wellsconstructed, hectares of land reclaimed, physical progress of arprocessing plants, andnumber of staff trained. Financial reports would quantify project expenditures and claimsfor disbursement. Information on physical and financial progress would be submitted

- 49 -

semiannually to the prefectural/municipal PMOs which would prepare a progress reportto be forwarded to the PPMO.

4.22 As part of project evaluation, early in the implementation period, theprefectural and municipal PMOs would undertake surveys of the project areas todetermine, inter alia, current levels of inputs and production, crop yields, livestocknumbers, salinity and alk-alinity levels, the progress of agroprocessing enterprises, andfarm incomes. These surveys would form the baseline from which to measure changesresulting from the project. Assurances were obtained that (a) semiannual progress reportsthat would be prepared by the PPMOs for submission to IDA within three months of theend of each half-year; and (b) a mid-term review for the project would be undertaken bythe PPMOs by October 31, 1996, to assess progress and chart implementation of theproject in the remaining period. The project completion report containing the finalassessment of the project impact would be submitted to IDA not later than six monthsfollowing the closing date. A list of key monitoring indicators is given in Annex 3,Table 11.

- 50 -

5. PRODUCTION, MARKETS AND PRICES

A. PRODUCTON

5.1 The project would expand areas under irrigated agriculture, converting acorn-based cropping system to wheat and paddy on previously crpped low-productivityland and uncropped wasteland. Fruit production would be improved and expanded.Livestock production would be increased in grain surplus counties, while shrimp andshellfish production would be increased in the project's coastal areas. In addition, severalagoprossed products would be generated from crops, livestock, aquaculture and theirby-products.

Crop Production

5.2 Cropping Patter. Incremental crop production in the project areas wouldbe achieved through improving the existing cropping pattern and increasing crop yields.The existing 2,000 ha of rainfed corn in Jilin would be converted to irrigated wheat anddouble-cropping of wheat followed by cabbage. The 21,300 ha of rainfed areas inLiaoning would be converted into irrigated land. Intercropping of corn between rows ofwheat and double cropping of wheat followed by summer soybeans would be introduced.These cropping systems would be practiced in a three-year rotation, i.e., the wheat-cornintercropping for two years followed by a one-year wheat-soybean double cropping. Theirngated wheat and corn under the intercropping system would produce 4.5 tons/ha ofwheat (March-June) and 5.2 tons/ha of corn (May-September). The irrigated wheat andsoybeans under the double-cropping system would produce 4.5 tons/ha of wheat and1.8 tonstha of soybeans. These yields are based on the levels achieved in the irrigatedland in the project areas.

5.3 Yields would be increased substantially under the project. In Jilin, in themove from rainfed to irrigated agriculture, the yield of corn would be increased from4.2 tons/ha to 5.1 tons/ha, paddy from 5.4 tons/ha to 6.4 tons/ha, wheat from 2 tons/hato 4 tons/ha and soybeans from 1.3 tons/ha to 1.6 tons/ha. In the drainage improvementarea, where com and soybeans suffer from various degrees of waterlogging due toinadequate drainage facilities, the average yields of these crops vary from 3.0 to 3.8tons/ha for com and 0.9 to 1.6 tons/ha for soybeans. With the construction of projectdrainage works, it is expected that yields would rise to the ranges of 4.4-5.2 tonstha forcom and 1.2-1.7 tons/ha for soybeans.

- 51 -

5.4 In Liaoning, the project would increase the productivity of existing medium-yield rainfed corn land and nonproductive wasteland into more productive irrigated paddyand wheat land through construction of irrigation facilities. The average yield of cornwould be increased from about 4.0 tons/ha to 5.2 tons/ha and substantial area ofwastelands would be used for production (paddy 6,167 ha, wheat 21,333 ha and soybeans7,100 ha). Yield of irrigated paddy is expected to be 7 tons/ha, based on similarreclamation projects in the province.

5.5 At full development, in year 10, yields of apples, pears, and apricots wouldreach 22.5 tons/ha, 18 tons/ha, and 15 tons/ha, respectively. Pinguoli will need 12 yearsto reach full development at 13.5 tons/ha. These yield levels are based on actal yieldsachieved in existing orchards.

5.6 Production. At full development, production of com is expected to bereduced by 50,000 tons (13,000 tons in Jilin and 37,000 tons in Liaoning), due to a changein cropping pattern under the project. Overall annual incremental production of paddywould be 71,900 tons (29,400 tons in Jilin and 42,500 tons in Liaoning), wheat 91,800tons (6,500 tons in rldin and 85,300 tons in Liaoning), and soybeans 13,000 tons (200 tonsin Jilin and 12,800 tons in Liaoning).

5.7 The annual production of apples, pears, apricots and pinguoli would beincreased by 73,700 tons, 13,500 tons, 3,000 tons and 94,500 tons, respectively, at fulldevelopment. The afforestation would produce 39,650 m3 of poplar timber and223,890 m3 of larch when they are clear-cut in Years 30 and 40, respectively.

livestock Production

5.8 The livestock program would use improved technology, including artificialinsemination for breeding, vaccination against prevalent infectious diseases, more nutritiousfeeds for pigs to improve feed-to-meat conversion, the use of corn, brewer's waste,disfiller's waste, and urea-treated roughage as feed for ruminants, and improved pasturevarieties and management. Annual incremental livestock production at full developmentwould be 24,900 tons of beef (19,350 tons from Jilin and 5,550 tons from Liaoning),8,900 tons of mutton (7,900 tons from Jilin and 1,000 tons from Liaoning), 46,200 tonsof pork (Jilin), 5,400 tons of geese (2,300 tons in Jilin and 3,100 tons in Liaoning),1,200 tons of rabbit meat (Liaoning), 8.9 tons of deer antlers (7.5 tons from Jilin and 1.4tons from Liaoning) and 14 tons of venison (12 tons from Jilin and 2 tons from Liaoning).

Livestock Processg

5.9 The project would support the construction of seven modern slaughterhousesthat, at full capacity, would process annually 500,000 sheep, 130,000 cattle, 1.5 milliongeese and 400,000 rabbits and other small animals. The slaughterhouses would prepareand pack the major products, and would each have quick-freeze and cold-storage facilities.Premium-grade packaged meat would be targeted at export markets, with other productsfor domestic markets. Nonedible products would be processed off the premises. The

- 52 -

livestock component would have close linkages to the agroindustry component. The DaAn gelatin plant would require 6,750 tons/year of mixed bones from the slaughterhousesand the Juitai Tannery would require 100,000 cattle hides, 600,000 pig skins and 600,000sheep skins per year. The two goose processing facilities would also incorporate feathercleaning, sorting and packing plants for 250,000 kg/year of raw feathers and workshopsfor the production of feather-filled garments and bed covers. Deer production andprocessing would be supported by the construction of a factory and would producetraditional Chinese medicines from 1,600 tons/year of dry venison, antlers, velvet andother deer products.

Shrimp and Shellfish Production

5.10 At full development, the annual yield in kilograms per hectare would beshrimp (1,875), bay scallops (25,500 live weight), hard clams (1,500), short-neck clams(1,875) and river crab (2,250). The incremental yield of shrimp is expected to be525 kg/ha on the rehabilitated ponds. The annual incremental production of shrimp wouldbe 667 tons (equivalent to 387 tons of processed headless shrimp), scallops 12,317 tons,hard neck clams 11,500 tons, short-neck clams 10,264 tons, and river crab 299 tons.

Agroindustry Production

5.11 Tbe projet would support the construction of 14 agroindustrial factories andtwo cold stores for fruit and vegetables. Each of the units would process farm produce,agricultural residues or livestock residues from the project area, thereby supporting theagriculture and livestock components of the project. The factories would create additionalmarkets for grain, fruit, vegetables, oil seeds, and flax. The project factories wouldpurchase dogbane as an input for paper and wild mushrooms and herbs as an input forProcessed dried vegetables and medicines. At full capacity, the factories would annuallyprocess 361,000 tons of agricultural and livestock products and by-products into200,000 tons of finished products. Details are in Annex 3, Table 5.

B. MARKS

5.12 Local markets in both provinces are in surplus for corn but in deficit for riceand wheat. In 1990, Jilin had a 9-million-ton corn surplus and deficits of 4,700 tons ofwheat and 9,500 tons of rice. Liaoning was a net importer of rice and wheat to the extentof 1.2 million tons in 1990. The introduction of improved cropping systems under theproject would reduce existing annual corn production by about 50,000 tons and incrementallivestock feed and agroprocessing input requirements would increase corn requirements by81,000 tons for feed and 150,000 tons for ag eng. In addition, the transport andmarketing improvements financed under the Grain Distribution Project would facilitate themovement of surplus corn to deficit areas in southern provinces, which are presently netimporters of corn from the project provinces. All of these would serve to reduce the cornsurplus. The incremental production of rice, wheat and soybeans under the project, on theother hand, would reduce imports of these grains and would be readily absorbed in the

- 53 -

local markets of both provinces. Rice grown under the project would also command someprice premium because of its superior taste.

5.13 Incremental production of fruit (apples, pears, apricots and apple-pears)would be absorbed by markets in the project provinces, in neighboring provinces(Heilongjiang and Hebei), in Beijing and other major cities, and in the southern provincesof China. That there is a large unmet demand for northern apples is evidenced byincreasing sales to other provinces and rising prices. Apples are widely consumed inChina and per-capita consumption has steadily increased from 3.4 kg in 1985 to 6.1 kg in1991. The incremental production would therefore be easily absorbed in the nationalmarket. Apple-pears (Jilin variety) also command a national market and are in shortsupply as evidenced by their high price. The incremental production of apple-pears wouldbe readily absorbed in this national market. Incremental pear and apricot production ismodest and would be easily absorbed localy and in neighboring provinces.

5.14 Incremental production of livestock would be marketed both domesticallyand internationally, through existing channels. There is a strong domestic market for beefand mutton and increasing opportunities in the Commonwealth of Independent States (CIS)and in Japan. The market for goose products including meat, eggs and down is presentlyundersupplied; for down, there is good international demand for down garments. Porkwould be exported by the joint-venture company. Rabbit meat would be both for domesticconsumption and export. The relative quantities at any one time would depend on thesituation in export markets. The national market for antler and other deer products isiely to grow with increasing incomes. Export opportunities, with the Republic of Koreabeing the main export market, are good but China might face increasing competition fromNew Zeland in antler products. Aiming at high-quality products and adequate qualitycontrol might assist in retaining this market.

5.15 The incremental production of shrimp from the project of around 667 tons/year would represent less than 0.12 percent of China's present total production and wouldnot materially affect either the Chinese or the world market. Demand for shellfish(scallops and clams) is growing because of rising incomes and the expansion of the touristindustry. The incremental production of the project would be easily absorbed by growingdomestic and export markets, the latter particularly in Japan and the United States. The299 tons of river crab would be easily sold in local markets.

5.16 All of the processing plants are considered to have a secure market for theirproducts, and in most instances they would be supplying a small proportion of a very largedomestic demand. The expected rise in real income of 6 percent per year will createadditional demand for agricultural and consumer products, including processed foods, fruitjuices, paper products, and meat and other animal products. All the processing plants haveundertaken marketing surveys and have produced letters of intent from domestic clients fora substantial portion of their output capacity. Due to recent changes in export policies,several of the processing plants will have the right to establish their own export marketsand to trade under their own brand names. Some of the existing enterprises that willexpand their factories under the project have already started trading abroad, e.g., the De

- 54 -

Hui Abattoir, which has a trading office in Japan. Some would export quality productsand have market outlets in Europe and United States for items such as leather, linen, downcoats, down quilts, dry mushrooms, fluting paper and peanut proteins. Several factorieswould produce primary products for secondary processng industries, including rawmateials and packaging for export goods. These would be flax, fluting paper, furfural,gelatin and modified starch plants, and would substitute for currently imported inputs.

C. PJciS

5.17 Output Prices. Under the present reforms, the government is in theprocess of reducing quota purchasing of grains and decontrolling prices of nonquota sales.The government grain procurement quota at a fixed price has been reduced each year. InLiaoning, grain procured under quota was reduced from 4.3 million tons in 1991 to1.5 million tons in 1992. In Milin, quota grain procurement is now small. It is anticipatedthat this procurement will be further reduced and eventually eliminated. Priceliberalization has also reduced the role of price guidance in the expanded nonquota salesto the extent that the prices received in negotiated sales are very close to free-marketprces. Farmers would be free to sell grains at negotiated or free market prices. Theincremental production of fruit, livestock and fish products would be sold mainly in thefree market. The high-value shellfish and shnmp would be mainly for export and wouldreceive international prices. Products of the processing factories would also be sold atfree-market prices. Prices of outputs from the project areas by component are shown inAnnez 3, Table 5.

5.18 Input Prices. Domestic inputs for all components would be at the marketprices. The project would finance the importation of important farm inputs such asferilizer and agrochemicals. An assurance was obtained at negodations that the PMOs%duld charge farmers a pnce reflecring the full cost of the unported fertilizers andpesticides financed by the project. These would avoid the problems of subsidized pricesand depletion of fcrtilizer revolving funds.

5.19 Fnancial and Economic Prices. Market prices of inputs and outputs areused in crop budgets and financial analysis. Prices for grains, fruits, livestock, aquacultureand agroprocesg products are the prevailing marlet prices (at appraisal) lesstransportation and handling costs to reflect farm-gate prices. Details can be found inAnnex 3, Table 5.

5.20 Economic farm-gate prices of grains, fertilizers, livestock products andshrimp are based on the Bank's international price projections, adjusted for internationaland national traders' margins and transport and handling costs. In the case of fruit andthose agroindustrial products that would mainly be sold in the domestic market, financialprices have been used to calculate economic prices. Border prices for prncipal productsand inputs can be found in Annex 3, Table 9.

- 55 -

6. BENEFITS, JUSTMICATION AND RISKS

A. BENEfFIS

6.1 The major benefits of the proposed project would come from (a) convertingsurplus corn into livestock production and agroprocessed output; (b) shifting the crop mixaway from low-intensity corn to higher-intensity, higher-value crops; and (c) developingwaste and unproductive lands for fruit and aquaculture production. The project woulddirectly increase incomes, employment and living standards of some 518,000 farmfamilies. At full development, crop development under the project would generateincremental annual production of 177,000 tons of grain (paddy, wheat and soybeans)valued at $30.5 million in 1993 dollars; 75,500 tons of apples valued at $31.5 million;13,500 tons of pears valued at $1.6 million; 3,000 tons of fresh apricots and 1,100 tonsof kernel apricots valued at $5 million; and 94,500 tons of apple-pears valued at $18million. In aggregate, crop and orchard development would provide incremental value,after adjusting for the associated reduction in corn output ($2 million) of $86.6 millionannuaIly. The livestock component, including the value of processing, would provideincremental production of beef, mutton, rabbit meat, goose meat and deer antlers togethervalued at $37.5 million annually. The aquaculture component would generate incrementalproduction of shrimp, shellfish and crabs valued at $24 million annually. Theagroprocessing plants would produce total value-added of $40.2 million per year. Theproject's total incremental annual production would be $188 million.

B. EPLomET Am INcomE

6.2 Employment. The project would generate substantial employmentopportunities. It is estimated that the irrigation and drainage works to be constructed underthe project would create employment of about 5.6 million person-days during projectimplementation. At full development, farming activities on the reclaimed, previously low-productivity land would create an annual incremental demand for labor of about 3.3 millionperson-days. Increased crop production would in turn create more new work opportunitiesin activities such as marketing, processing, transportation, input supply and consumerservices. Aquaculture would provide jobs for 750 permanent workers and 2,900 casualstaff, who would be involved in harvesting, collection, processing and packing of shelfishat various cold stores. Agroindustrial and livestock processing activities would create full-time employment for nearly 8,500 workers, of which 35 percent would be female workers.

6.3 Incomes and Poverty Alleviation. The project would have a positiveimpact on incomes of project beneficiaries, most of whom presently have incomes wellbelow the provincial average and are living either in officially classified poor counties orin other low-income areas. Farm model analysis indicates that net per-capita income fromcrops would triple with the project, from an estimated Y 311 for future without the project

- 56 -

to Y 998 at full development with the project. The average return per day in crops wouldincrease from Y 4 to Y 14. The average net income from orchard development wouldincrease substantially; for pinguoli, for example, income would quadruple from Y 1,700to Y 6,500, which amounts to an increase in return per day from Y 23 to Y 72. Theaverage incremental net income from livestock development would be Y 1,100-20,000 perfamily, or an incremental return of Y 10-136 per day. Incremental net income fromaquaculture production would be between Y 7,300 and Y 36,000 per family, or anincremental return per day of Y 16-150.

C. EMLwymENr OPPoRTuNmEs FOR WOMEN

6.4 As in the rest of China, women in project areas participate in most of theagricultural, livestock, aquaculture, agroindustrial and livestock processing activities. Theproject would have a positive impact on their incomes as a result of income-generatingactivities and employment oppotunities arising in the project areas. The incrementalproduction of paddy and wheat annually would require about 1.2 million person-days offertilizing, weeding and harvesting work. Similarly, fertilizing and harvesting of fruit treeswould provide employment for 32,000 female workers. The project's investment in smallanimals (rabbits and geese) would provide income-generabng opportunities for some11,000 women in household livestock production. Aquaculture would provideopportunities for some 1,776 women. The 14 agroindustrial plants would provideemployment for an estimated 2,975 women. Project staff and support services staff wouldbe strengthened under the project and this would also provide work opportunities forfemale workers.

D. Cosr REOVERY

6.5 Cost recovery for this project would have several major elements. The costof fertilizer, pesticides, fuel and other production inputs would be recovered by paymentsfrom baenficaries. Tbe cost of extension, reseach and training (Y 31 million) would berecovered through the 5 percent provincial crop tax and the specal product taxes foraquaculture and livestock of 10 and 6 percent. (Ihese taxes would apply to theincremental production of the project.) Services provided by the water conservancy andanimal health bureaus would be recovered through service fees. Government investmentin agroprocessing and agroindustry in the form of equity would recovered in the normalway from the distribution of enterprise profits. (he Govemment would also collectenterprise profit taxes.) Cost recovery for investment in irigation would be through laborcontribution dunng project construction and O&M and through the revenues fmm watercharges (pam. 4.19). The cost recovery analysis from Annx3, Table 7 shows that atpresent tax rates, project charges would be sufficient to cover project costs with a recoveryindex of 18 percent. Rent recovery at full development averages 51 percent. Discountedover the life of the project, the rent recovery index averages 95 percent.

- 57 -

E. FNANCIAL AND ECONOMIC ANALYSES 1/

6.6 lnancial Analysis. Financial analysis has been carried out separately forthe crop, livestock, aquaculture, agroindustry and livestock-processing components of theproject. A per-hectare crop budget analysis for rice and wheat has been carried out 'withproject and without project." The results indicate substantial annual incremental netbenefits-Y 1,500 and Y 1,120 per hectare for rice and wheat, respectively. Financialanalyses have also been carried out for investment in new planting, top grafting andimprovement of apples, new planting and improvement of pears, and new planting ofapricots, and they show high financial rates of return (FRR) ranging from 22 to 63 percent.Livestock models used for financial analysis show positive cash flows and acceptable ERRsfor all types of livestock, ranging from 16 to 41 percent. Financial analyses for newshrimp ponds, scallop production, hard and short-neck clam production, crab productionand cold storage and processing facilities show high ERRs ranging from 21 percent to39 percent and positive cash flows after debt service. The agroindustry and livestock-processing components show acceptable FRRs between 16 and 28 percent Even at80 percent capacity, these subcomponents would still be viable with ERRs between 12 and23 percent.

6.7 Economic Analysis. Economic analyses have been carried out for theindividual components (crops, orchards, livestock, aquaculture, agroindustry and livestock-processing), and for the project as a whole, using constant 1993 border prices. Allinvestment costs together with physical contingencies have been taken into account inestimating the economic costs of the project.

6.8 World Bank price projections or average export and import prices actuallyrealized by China were used to estimate the farm-gate economic prices in 1993 constantterms for traded inputs and outputs. Economic prices for nontraded goods were estimatedusing the standard conversion factor of 0.8. All economic values were converted to localcurrency at the July 1993 official exchange rate of Y 5.7 to $1. For the economicanalyses, farm and unskilled labor has been valued at Y 8 per person-day, representing80 percent of the prevailing average wage rate of about Y 10 per person-day in the projectarea. Based on the above assumptions, economic rates of return (ERR) for crops,orchards, livestock, aquaculture, agroindustry and livestock processing are estimated to be42, 47, 27, 26, 23, and 27 percent, respectively. The ERR for the total project isestimated to be 32 percent (Annex 3, Tables 10.1-10.2).

6.9 Sensitivity Analysis. Sensitivity analyses have been carried out for allcomponents to evaluate the effect on the project ERR of changes in major economicvariables such as price, investment and operating costs. The results show that economicviability of the crop, orchard and livestock development components is only marginallysensitive to these variations. While the ERRs for the agoindustry and livestock-processing

1/ This project was appised in June/July 1993 when the exchange rate was $1 - Y 5.7. Economic andfinncial analysis is based an original apprisal pamnmter. The devaluatio wold improve conomicand financial zedts to some extent.

- 58 -

components are also not very sensitive to changes in investment and input costs, they aresomewhat more sensitive to variations in output prices (Annex 3, Tables 10.3).

F. RSS

6.10 The project faces no unusual technical or organitional risks. Under theproject, management of project entities would be strengthened and farmers who alreadyhave experience and basic knowledge would be further trained. The potential risk foreffective livestock production, i.e., ineffective straw ammonification and pasturedevelopment, would be minimized by applied research and monitoring. The risk ofinsufficient inputs for cattle fattening [live catle and brewery wastes (for feed)] have beenminimized by szing the cattle subcomponent according to verified input availability andfarmer-group contracts with breweries. The risk that shelfish areas would becontaminatod by industrial waste have been minimized by careful site selection and stictmonitoring programs. The potential marketing risk for agnoprocessed and livestockproducts would be minimized by provision of technical assistance and improved processingtechnology, quality and design.

- 59 -

7. AGREEMiiENTS AND RECO MIMENDATIONS

7.1 At negotiations, assurances were obtained from Liaoning and Jilin Provincesthat:

(a) Jilin would construct the farm-level drainage networks related to the Songqiirrigation scheme in accordance with construction plans satisfactory to BDA(para. 3.7);

(b) dams and reservoirs supplying the irrigation systems under the projectwould be maintained and inspected periodically in accordance with soundengineering practice, under arrangements satisfactory to IDA (para. 3.11);

(c) the Liaoning PMO would provide an annual report on groundwatermonitoring and assessment in each of the different project areas during theperiod May 1 to April 30 by October 31 of each year (para. 3.14);

(d) the PPMOs would submit an annual research plan to IDA for review byOctober 31, of each year for the subsequent year (pam. 3.21);

(e) the prices of (a) semen produced by the project's Al stations would beincreased each year to arrive at full cost recovery by June 30, 1998 and(b) goslings produced by the Changtu hatchery would be charged at full cost(para. 3.44);

(f) both PMOs would furnish to IDA for its review and approval an annual planfor domestic and overseas training and study tours for implementationduring the subsequent calendar year by October 31 of each year duringproject implementation. Training would be carried out in accordance withplans satisfactory to IDA (para. 3.62);

(g) all agrochemicals financed under the project would be approved by IDA andstored, handled, distributed and used in accordance with guidelinesacceptable to IDA (para. 3.63(b)];

(h) i) Jihin and Liaoning PEPBs would approve the final designs of thetreatment facilities for each agro- and livestock-processng plants prior toconstruction, and (ii) these enterprises would implement and maintaineffluent monitoring and treatment systems according to the final designsapproved by the PEPBs para. 3.63(c)];

- 60 -

(i) Liaoning and Jilin would provide to EDA, for each municipality, prefectureand county in the project, a detailed statement of approved budgetaryallocations by April 30 of each year (para. 3.68);

(j) the PPMOs would maintain consolidated accounts for all components forannual auditing by independent auditors acceptable to IDA, and the auditedaccounts together with the auditor's report would be submitted to IDAwithin six months of the close of each financial year (para. 3.77);

(kc) prepare environmental management and monitoring plans to be submitted toIDA for review by December 31, 1994 (pam. 3.78);

(1) the provinces would ensure that any persons who are involuntarily resettledor whose rights of land are compulsorily acquired as a result of the projectdevelopment would be provided compensation for assets, logistic supportand relocation assistance (para. 3.81);

(m) the provinces would maintain the Provincial PLGs with composition andresponsibilities acceptable to IDA (para. 4.2);

(n) the provinces would maintain the PMOs with functions and responsibilitiesacceptable to IDA, staffed at all times by qualified and experienced staff inadequate numbers (para. 4.3);

(o) all project activities conform to National and Provincial environmentalstandards and guideines satisfactory to IMA, and the PPMO wouldimplement their respective environment management plans for the projectas agreed with IDA (par. 4.9);

(p) funds made available to project farmers and to enterprises through the localgovernment finance department would be at interest rates not less thanprevailing interest rates charged by ABC or other commercial banksacceptable to IDA for similar loans of similar purposes of similar maturity(pam. 4.10);

(q) the project would set up three revolving funds: (i) an agricultural inputrevolving fund for procurement of fertilizer, pesticides and fuel; (ii) alivestock revolving fund for financing new livestock production activities;and (iii) a fund for well development and water-saving pipes (para. 4.13);

(r) Jun would 0T) submit O&M plans for each irngation and drainage schemeto IDA for review by June 30, 1996 and (ii) review the water charges forsurface irrigation schemes financed under the project by December 31 ofeach year, with such charges reised penodically in order to achieve a levelsufficient to cover all O&M costs by December 31, 2000 (pam. 4.19);

- 61 -

(s) the provinces would undertake a mid-term review with IDA and theGovernment by October 31, 1996 (para. 4.22); and

(t) the PMOs would charge farmers a price reflecting the full cost of importedfertilizers and pesticides (para. 5.18).

7.2 Assurances were obtained from Government that:

(a) proceeds from the IDA Credit would be onlent to Liaoning and Jilinprovinces at an interest rate of 5.3 percent, with repayment over 15 years,including a 5-year grace period (para. 4.10); and

(b) a mid-term review with IDA and the project provinces would be undertakenby October 31, 1996 (para. 4.22).

7.3 State Council approval of the Development Credit Agreement would be acondition of effectiveness (para. 4.11).

7.4 Subject to the above conditions, the proposed project constitutes a suitablebasis for an IDA credit of SDR 148.5 million ($205 million equivalent) on standard IDAterms with 35 years' maturity to the People's Republic of China.

-62- Annex 1Table 1

CHIhA

SC4GLIAO PLAIN AGRICULTURE DEVELOPMENT PROJECT

Basic Data an Project Provinces

____ __ _ ________ _______....................................................................................................__.. _________

Lieaning Jilin_______ ___ .. .. .. .. .. ....__...................__ ____........______

1980 1991 1992 1980 1991 1992____ ____ ____ _ _____................................. _____.................... _____.... _ ________.......

PopuLation (MifLion)

TotaL Population 35 39 39 22 25 25Rural Population 23 23 23 16 1S 15Rurai Labor Force 7 9 9 3 6 7Agric. Labor Force 6 6 6 3 5 5Rurel households 5 5 6 3 3 4TVEs ('000) 33 991 1,360 17 456 497

Land Area ('000 ha)__ _____ .

Total Arable Land 3,775 3,467 3,480 4,l44 3,939 3,938Saon Area 3,547 3,600 3,633 4,057 4,040 4,049Irrigated Area 760 1,060 1,634 731 463 442

GYAO CY MILLion) 7,356 30,228 34,075 6,166 18,SU 20,439

Crop Production 12,200 15,526 15,8a6

Grain Area ('000 ha) 3,221 3,090 3,051 3,514 3,542 3,m7Grain Output ('OOOt) 11,605 14,949 15,886 9,220 18,989 18,4033il Seed Area c000 303 143 68 186 188 154oil Seed Output ('00 306 203 e1 345 435 358

Livestock Production

Pigs ('000 head) 10,463 11,377 12,220 5,430 5,226 5,447Pork production ('00 423 823 914 317 458 429Sheep/Goat ('000 hoe 2,104 2,479 2,395 1,679 2,287 2,285Mutton production (' 2 U4 16 2 10 11Cattle ('000 head) 2,656 1,494 1,553 2,318 1,991 2,229Beef Production ('00 S0 65 67 a 49 61

AquaculturePond Area ('000 ha) ne no 23 nm ne noProduction ('000t) 421 1,141 130 a 79 e5

Rural Incow per Cap 273 776 996 236 717 785

Main Consuhption (kg/capita)

Grain 259 272 260 263 287 306Oil Crops 3 5 6 3 6 8Meat 9 12 14 a 11 16Chicken 0.3 0.5 0.6 0.5 0.6 0.5Eggs 2 3.9 5.5 1.3 5.3 10.9Fish and Shrimp 1.7 2.4 3 0.7 1.5 4.4Fruit 13.1 25.3 26 2.5 ne ea

S o _............. a._................................. _ .................................

Sources: Statistics of Lio nins wnd Jilin Provine *, 199.

CHINK

SOHOLIAO PLAIN AGRICULTURE D3VEWOPKENT PROJECT

Project Prefectures, MunicipalLties and Counties

LLaconing Province

Pref. /MunLcipaiLtieu counties

1. Tieling Changtu, KanpLng, raku, Kaiyuan, Tieling, XLifeng2. FPuxin FuxILn, Zhangwu3. Panjin Panshan, Dawa4. Jinzhou JinxLan, Beizhen, Heishan, YixianS. Liaoyang Liaoyang, DengtaS. Anshan Tai An, Haich*ng7. iLnxL lincheng, SuishongS. Chaoyang chaoyang, JiaippLng, leipiao, Kethou, Lingyuan, Longcheng9. Shenyang Suburb of Shenyang City

Jilin Province

Pref. /Kunicipalities counties

1. Changchun Yushu, Hong An, Dehui, JiutaL, Shuangyang and suburb of Changchun city2. SLping GongshulLng, Lishu, shangILao3. Daicheng Da An4. Shangyuan ChangILing, QLanguo, Fuyu, Qian An

H

CHINA

SONGLIAO PLAIN AGRICULTURAL DVELOPMENT PROJECTIRRIGATION AND DRAINAGE COMPONENT

JILIN PROVINCE

Water Balance ; Fengman -HadaBhan ReervoirsYear 2030

(million cubic meters)

1AN PEH MAR APR MAY JUNE -J ILY AUO SEPT OCT NOV nEC TOTAT.1. Inflow to Fengman Res. 453.1 424.2 473.5 1163.9 1135.0 1110.8 1448.5 969.4 761.0 389.8 627.0 347.0 9303.2

2. Inflow of Inter- 114.2 106.9 119.3 293.3 286.0 279.9 365.0 244.3 191.8 98.2 15S.0 87.4 2344.3catchment Area

IUPPLY

3. Irrigation return Flow 10.0 14.7 12.9 12.9 5.9 2.4 58.8

4. Totafl BuiPB1Y S67-3 531-1 592,2 1157.1 2431-0 1405-4 1S26-4 1226.6 958,7 490-4 78S-Q 434.5 11706-3

5. Irrigation Requirements

6. a)Project Area 40.4 26.9 31.4 13.3 112.07. b)Rice Areas 393.0 261.7 305.3 129.0 1099.0B. COVegetable Areas 1.4 6.2 6.9 6.4 6.5 2.4 0.9 30.69. Sub-Total Irr. Rea L 439.5 295-5 343.1 14i.8 22 0-9 UiLi

10 Domeatic & Industrial 122.1 103.5 135.7 152.6 154.3 171.3 161.1 166.2 159.4 156.0 106.8 106.8 1695.9 -

11 Interval Losses 66.7 62.4 69.7 171.2 169.1 165.1 214.6 144.1 112.6 57.6 92.2 51.1 1375.5

12 TOtal Demand 189-8 165-9 205-3 3253 76i2-0 631,9 718.8 459-1 274. 214.5 199-1,157-9 4302

URPLUB 13 Surplus 376.5 365.3 3I7LS 11318 669-0 773.5 Io11077 767l 684.2 275i9 S86.0 27.i6 7403.4 _ _

F~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0

CHINASONGLIAO PLAIN ADP

IRRIGATION AND DRAINAGE COMPONENTLIAONING PROVINCE

Water Balance for Groundwater ResourcesYear 2015

mcm

Changtu Faku Kangping Tieling Heishan Beizhan Jlnxian Ylxlan Zhangwu Talen Uaoyang Dangle Total

SUPPLYPotential 179.33 120.40 174.00 5.20 99.65 278.78 123.35 72.67 137.12 240.95 348.44 179.00 1956.80Usabla 125.53 63.20 126.00 2.71 82.83 187.95 95.99 45.75 88.91 228.10 290.45 146.90 1483.32

2015 DEMANDAgriculture 62.97 51.34 27.26 2.25 38.23 133.60 76.20 11.90 33.45 151.00 118.30 103.62 810.02IndustrIal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Urban 0.00 0.00 5.00 0.00 2.25' 0.35 0.60 0.00 0.65 3.60 0.00 0.00 12.25Rural 9.31 3.40 5.19 0.00 5.94 14.50 8.49 1.41 5.39 7.12 11.68 3.60 76.03Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

sub-total 221. 64.2 37.4 2? Ala2 148.35 86.29 13.31 3i 101.B2 12888 107.22 9fLUD

SURPLUS/DEFIC LO2 6 I1A Q8f. 0.A4 26 41 3 9 60 I07 2A& 1 68,4B 100.47 585.Q2 -

'Note: In those counties with limited groundwater, additional waler would be available as Induced sidellows, reduced evaporallon and Incteased Infllltralongroundwater In those counties.

- 64 -

Annex 1Table 3

CHINASOWCLIAO PLAIN AGRICULTURE DEVLOP$KEWT PROJECT

Key Statistics of the Project Area

…_.. _. _____________ .... .,,,_ .___ ,,______ _ ._._._ __ .____ .________.____._ ____._.__________Total Average

Total Agricultural X Share of Area Per CapitaProject Counties PopuLatlanPopulation GVAO ----- ------------- ---------- Income

('000) ('000) CY oil) Crops LivestockFisherfesForestry sideline ('000 ha) 1990

Jilin Province

Qienguo 143.0 137.0 179.7 89.0 8.0 0.2 1.3 1.3 71.0 474Fuyu 579.0 545.0 595.1 8U.0 8.0 3.0 0.2 1.0 198.0 496Changling 318.0 293.0 206.9 36.0 10.0 0.0 0.2 4.0 121.0 499Oian An 212.0 196.0 329.4 79.0 16.0 0.2 2.0 3.0 58.0 390Da AN 70.0 59.0 13.1 72.o 15.0 6.3 3.0 3.4 20.0 496Lithu 610.0 530.0 532.1 32.0 16.0 0.4 1.0 1.0 175.0 594Shuangtiao 245.0 193.0 383.1 63.0 15.0 0.0 1.0 21.0 31.0 SOOGngzhuLing - 459.0 427.0 269.6 73.0 17.0 0.: 1.0 t.0 142.0 41CYuthu 414.0 396.0 275.7 39.0 9.0 0.4 1.0 0.5 105.0 426Hong An 477.0 410.0 511.2 U .0 10.0 1.0 1.0 0.3 154.0 408Dehui 349.0 344.0 427.6 37.0 11.0 0.7 1.0 0.5 107.0 364Jiutai 91.0 36.0 59.9 83.0 13.0 0.5 3.0 0.5 22.0 312Shuangyang 105.0 101.0 131.4 30.0 16.0 1.5 0.2 1.0 23.0 353Suburb of Changchun 111.0 106.0 251.0 58.0 41.0 0.2 0.5 0.2 31.0 461

_______......._W__ .................. ___._..................__..___.. _.... ...... __. .____......._____.............___

Subtotal 4, 13.0 3,323.0 4,539.5 79.8 14.6 1.1 1.2 3.3 1,338.0 *42

Liaoning Province Year 1991

Changtu 346.1 297.4 439.0 71.2 27.0 0.3 0.3 0.3 83.7 7Carping 249.7 233.6 394.8 52.4 41.9 0.9 1.7 1.7 72.4 552Faku 243.6 203.9 246.1 70.5 25.7 0.3 1.5 1.5 57.9 742kaiyuen 1.1 1.1 2.0 40.0 40.0 0.0 20.0 20.0 0.2 758TieLing 31.8 30.8 71.7 62.7 21.9 3.3 9.8 9.8 6.1 152Xifeng 24.4 21.7 13.8 58.6 27.1 0.0 10.5 10.5 2.9 649Fuxin 71.1 68.7 229.0 70.6 26.6 0.0 0.3 0.3 67.4 836Zhcngwu 200.1 190.0 163.8 76.7 ¶9.9 0.0 1.3 1.3 95.2 802Jinxicn 154.8 146.2 162.7 33.7 14.2 47.1 3.5 3.5 29.2 5915eizhmn 486.8 469.0 374.2 71.5 20.0 0.3 7.4 7.4 74.6 818Neishan 298.9 285.0 418.2 71.3 23.1 3.7 1.1 1.1 67.9 891Yixian 476.6 453.9 458.3 5t.9 31.1 0.1 1.8 8.8 74.4 331Panshan 24.9 21.0 102.0 48.7 6.0 44.1 1.2 1.2 3.2 1,209Dow& 38.3 31.7 72.6 73.1 12.3 10.1 1.4 1.C1 8.0 1,065Lisoyang 297.3 276.8 241.0 67.3 18.3 2.5 8.5 3.3 27.6 1,015Dengt 440.0 433.3 231.2 73.5 14.3 5.9 0.9 0.9 73.7 793Tat An 139.7 131.6 169.8 67.6 23.9 2.5 2.5 2.5 31.1 397Haichen 220.0 209.0 303.0 49.6 28.9 1.5 19.5 19.5 31.0 1,201Xincheng 243.0 216.0 85.0 63.2 19.2 0.9 6.8 6.1 48.2 727Suizhong 259.0 249.0 192.0 *6.2 .22.7 2.2 7.0 7.0 62.0 679Lonscheng 21.9 27.6 15.1 61.4 29.4 0.0 0.2 0.2 1.8 1,017Chaoyang 173.1 169.2 109.9 64.0 27.8 0.0 8.4 5.4 13.7 656Jiwrping 291.4 231.1 224.3 70.4 22.5 0.0 2.1 2.1 71.9 636Kazuo 173.1 166.8 130.2 75.1 18.4 0.0 3.2 3.2 22.0 514Lingyuan 243.0 210.0 140.4 53.6 33.6 0.1 7.9 7.9 20.3 554Seipiao 192.0 134.0 173.9 56.4 34.6 0.0 4.3 4.3 35.2 646

subtotat 5,3"6.4 4,958.9 5,194.5 63.1 24.3 4.9 5.4 5.4 1,081.6 808

............. .....................................................................................................Sources: Li oning and Jliln Stctistica Yeaorbooks, 1991.

CHINA

SONOLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJRCTIRRIGATION AND DRAINAaB COMPONENT

JILIN PROVINCE

Water Balance : Fengman -Hadashan RenrvoirsYear 2030

(million cubic meters)

IPPhs kmN ITRM JAN FRB MAM APR MAY JUNE JULY AEW RC TO?AL1. Inflow to Fengman Rer. 453.1 424.2 473.5 1163.0 1135.0 1110.8 1441.5 969.4 761.0 309.0 627.0 347.0 9303.2

2. Inflow of Inter- 114.2 106.9 119.3 293.3 266.0 279.9 365.0 244.3 191.8 9t.2 158.0 67.4 2344.3catchment Area

IUPPLY

3. Irrigation return Plow 10.0 14.7 12.9 12.9 5.9 2.4 so.g

4. Total SUiDD1 567.3 531.1 "j 1457.1 1431.0 1405.4 1826.4 1226.6 950.7 490.4 785.0 434.5 11706.3

S. Irrigation Requirements

6. a)Project Area 40.4 26.9 31.4 13.3 112.07. biRica Areas 393.0 261.7 305.3 129.0 1069.08. c)Vegetable Areas 1.4 6.2 6.9 6.4 6.5 2.4 0.9 30.69. Sub-Total Irr. Rea ii 439.5 295.5 343.1 148.8 At 0 1231.L

10 Domestic A Industrial 122.1 103.5 135.7 152.6 154.3 171.3 161.1 166.2 159.4 156.0 106.8 106.6 1695.9

11 interval Lose6s 66.7 62.4 69.7 171.2 166.1 165.1 214.6 144.1 112.6 57.6 92.2 51.1 1375.5

12 Tt*1 Demand 16. 1C5.9 205.3 325.3 762.0 631.9 716.8 459.1 274.4 214.5 199.l 1S?.9 4302.9

URPLUS 13 Surlus 37015 3CS.3 387.S 1131. 669.0 773.5 1107.7 767.fi604.2 275.9 586.O 276.6 7403.4

CHINASONGLIAO PLAIN ADP

IRRIGATION AND DRAINAGE COMPONENTLIAONING PROVINCE

Water Balance for Groundwater FlesourcesYear 2016

mcm

Changlu Faku Kangping Tlollng Helshan Belzhan Jlnxian Yixian Zhangwu Talan Llaoyang Dengta Total

SUPPLYPotential 179.33 120.40 174.00 5.20 99.58 278.78 123.35 72.67 137.12 240.95 348.44 179.00 1956.80Usable 125.63 63.20 125.00 2.71 82.83 187.96 95.99 45.75 86.91 228.10 290.45 146.90 1483.32

2015 DEMANAgriculture 02.97 51.34 27.26 2.25 38.23 133.50 76.20 11.90 33.45 151.00 118.30 103.62 810.02Industrial 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 00Urban 0.00 0.00 5.00 0.00 2.25' 0.35 0.60 0.00 0.55 3.60 0.00 0.00 12.25Rural 9.31 3.40 6.19 0.00 5.94 14.50 8.49 1.41 6.39 7.12 11.60 3.60 76.03 ,

Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

sub-total Z2 2 4A74 3745 4 26 45 42 148.35 8629 13.31 39.39 161.62 129.99 107.22 890.30

SURPLUS/DEFIC 53.25 &A.i 87 66 0411 36.41 39.60 10 7 32 44 49.52 66 49 180.47 39 58 586.02 -

"Note: In those counties with limited groundwater, additional water would be available as Induced sidellows, reduced evaporallon and Incteased Infiltrationgroundwater In those counties.

LI'

- 67 - Annex ITable 6

CEHNSONLo PLAIN ADP

SRRZGATION AND DRAINAGE COMPONESTJILX PRCOTC

ANALYSIS ON MON=R=ING VALCE AND SINGLE ITTM INDEX ONWATER OCML=TY OF SONGBUA RIVER

,1990 - 199

Monitored Item Standmrd of 4onitored ValueWater Quality

Ground & Surface Agricultural Shaokeo FuyuWater Use 11-11 11-11

Do - > 2 5.4 6.3

CoD Cr c 2S 16.27 8.57

NOD5 c 10 13.00 4.2

NXE3-N c 0.2 0.0000 0.0000

NO2 IC1 0.023 0.097

NO3 c 25 0.82 1.13

2 OR < 0.1 < 1 0.005 0.031

CN c 0.2 c 0.5 0.000 0.000

AS c 0.1 c 0.05 0.004 0.004

Eg c 0.001 c 0.001 0.00002 0.00003

Cr6- c 0.1 c 0.1

Pb c 0.1 c 0.5 0.008 0.009

oil classification c 1 c 1 0.25 0.20

PE 6-9 S.5-8.S 7.41 7.30

File: tablel. tbl

- 68 - Annex 1Table 7

SONGLIAO PN ADPJ7ILIN PROVTNCE

SONG PO RIGATION SCEMEPUMPING STATIOS CHACTERA ISTICS

New PumDinq station aZeaLha) No.of PuB 2 ^_ Em Tvoe of Dev.

1. lIt St. Zhong Xia 380 2 1.5 310 6.5 Rehah.

2. 2nd St. Paija 880 4 3.661 620 6.6 Rebab.

3. 2nd St. Zaojia 120 3 2.771 465 5.75 Rehab.

4. 2nd St. Louja 300 -2 0.54 60 4.O5 - Rehab

5. 2nd St. Noushrn 330 2 0.69 150 4.10 Rebab.

6. 3rd St. Penjia 260 2 0.52 60 7.10 Rehab.

7. 3rd St. Shanzui 770 3 1.73 285 7.45 New

S. 2nd St. Nouyan 380 2 0.80 150 4.15 New

Total 32

1/ Discharge from those pumping station would irrigate the designated areasand the surplus would go to 3rd stage pumping stations.

2 in addition there are 190 ha irrigated at prtsent form existing Iststage pumping station, making the total 4,500 ha.

- 69 -

Annex 1

CHINA Table 8SONCLTAO PATN ADPJILIN PROVINCE

IRRIGATION AND DRAINAGE COMPONENTLEFT SIDE DRAINAGE SCR

Pumtnrz Station Characteristf cs

Schem/Pimping Station Cou lmbr of Total head TotalArea PUMP Discharge kw(ha) Unts z3/1s (a)

We-hon,app Scheme

Li idangfang Pumping St. 1.590 3 5.98 4.05 540Xinglong Puping St. 717 2 2.00 3.58 160-East Zhujialu Pumping st. 1.464 3 4.22 2.79 24G

Sub-Total L3771

Wangjiatun Pumping St. 719 2 3.26 3.96 190Shu nghechuan Pumping St. 885 3 3.44 3.74 240Langyimen Pumping St. 280 2 1.10 2.34 60Shivujiazi Pimping St. 758 3 3.18 1.94 165Wenjiagang Pumping St. 261 3 0.945 1.81 45

Sub-Total 29

Total 6i674 -

- 71 - Annex 1

Table 10

- 70 -

_ Annex 1CHINA Table 9

SONGIAO PLAIN .DPIRRIGATION AND DRAIN CGE COMPONENT

IMPROVED AND NEW AREAS

Scheme New Improved Total(Na) (Ha) (Ha)

1. Song Qi Irrigation Scheme 2,6601 930 3,590

2. Song Po Irrigation Scheme 1,3001 3,200 4,500

3. Wazhangbao Huajia 3,8002 7,700 11,500Drainage Scheme

4. Pu Yu Groundwater 2,000; --- 2,000Irrigation Scheme

To;al 9.760 ;11B30 21,590

11 Wasteland areas.

t/ Water logged areas.

2/ Groundwater aresw.

CHINASONGLIAO PLAIN AGRICULTURE DEVELOPRENT PROJECT

Livestock Programs - Lfsoning Province

Yuan Per Fmily/GroupLfvestock Production Prefecture County Investment Working Total Ease Nuiber of----------------------.-----

Capital Cost Famuiles Investment Working Totsl--- -------(000 Yuan) -------- Capital

1. Cattle Fattening Tieling, Xifeng, Changtu, 50,703 11,631 62,334 6,612 7,668 1,759 9,427Zhangwu Kenping, Faku,

Fuxin, Zhangwu,L aoyang andKazuo.

2. Cattle Breeding Teling, Kanping, Dengts, 16,711 2,440 19,151 2,241 7,457 1,089 8,546Liaoyyng Tixian and Long-

Cheng District3. Sheep Production Fuxin Fuxin County 6,934 1,250 8,184 1,000 6,934 1,250 8,184

4. Deer Production Xifeng 4,294 525 4,819 150 28,627 3,500 32,1275. Goose Fattening Fuxin Changtu, Zhangwu 12,680 2,664 15,344 9,000 1,409 296 1,75T. Rabbit Production Chayang Changtu, Jianping 13,286 3,159 16,445 2,925 4,542 1,081 5,623

Sub-total Llsoning 104,608 21,669 126,277 21,928*--UZZZUZUUUURZZESZZUUUS=SUUss _

1. Ireeding Deer Farm Xifeng 6,181 1,000 7,1812. Goose Breeding Farm Changtu 2,572 620 3,1923. Pasture Development 915 915 140 6,536 6,5364. Nucleus Rabbit Stud Farm Chaoyang City 472 64 5365. Rabbit Multi. Stud Laocheng 133 37 170 10 13,300 3,740 17,0406. Rabbit Multi. Stud Jiariping 1,072 107 1,179 10 107,200 10,720 117,920

11,345 1,829 13,174

1. Al 4 Support Service 2556 25562. overseas Training 413 4133. Domestic Training 662 6624. Extension 3774 3774

January 24. 1994

H

CHINASONGLIAO PLAIN AGRICULTURE OEVELOPMENT PROJECT

Livestock Programs - Jiln Province

*uan Per Fmily/GroupLivestock Production Prefecture County Investment Uorking Total Base NuRber of-----------------------------

Capital Cost Families Investment Uorking Total----------- ('000 Yuan) -------- Capital

1. Cattle Fattening Changchun Changchun Sub. 35,676 8,400 44,076 6,000 5,946 1,400 7,346(3 Heads) Shuangyang

Jiu TaiDe HuiNong An

ShuangYang Fuyu 5,854 1,270 7,124 1,000 5,854 1,270 7,124

2. Cattle Breeding/ Changchun 5 Counties 43,905 9.600 53,505 8,000 5,488 1,200 6,688Fattening (2hd) ShuangYang Fayu 7,885 1,050 8,935 1,500 5,257 700 5,957

3. Goose Production Changchun Nong An 5,693 5,200 10,893 10,000 569 520 1,089

4. Deer Production Changchun Shuwns Yang 17,306 1,952 19,258 600 28,843 3,252 32,095

5. Sheep Production ShuangYang 3 Counties 34,217 10,000 44,217 4,200 8,147 2,000 10.147Siping Lishu 6,517 1,600 8,117 800 8,147 2,000 10,147

6. Cattle Fattening Siping Shuwns Liao 52,232 8,400 60,632 4,000 13,058 2,100 15,158(5 Heads) Lishu

7. Pig Fattening Siping Gongzhuling 56,759 7,500 64,259 2,500 22,704 3,000 25,704

Sub-totat Jiltin 266,044 54,972 321,016 38,600

8. Cattle Fattening Siping Shuang Llao 10,330 1,548 11,878 180 57,389 8,600 65,989(Feedlots) Lishu

9. Pasture Devetopment 9,796 0 9,796 500 19,592 0 19,592

10. Al progrm Siping 2,652 2,65211. Research 551 551 Fx

12. Al and Veterinary 2 cities S 2,221 2,22118 Townships182 villages

13. Sheep Support Shuwngyang 7,904 7,90414. Research/Training 7,175 7,17515. Al support Changchun 1 city,4 countiles

nd 56 towmships 4,814 4,81416. Overseas Training 210 21017. Domestic Training Changchun 6,544 6,544

--......----.

January 24, 1994

CHINA

SONGLIAO PLAIN AGRICaLTURAL DEVELOPMENT PROJECT

Agro-Industries and Livestock Processing Components

Total Base Cost........... ...................... ...... ........... .. .... .... .... ...... .. .. ...........................

Product and Inwestment aorking TotalINVESTMENT CO"PONENT Capacity Base Cost Capital lsse Cost

Jilin Province Agro-industries i-----------liion Yuan-----------. , . .. . . . ...... . .. ..

-Lishu Anhydrous Alcohol Plant 30,000 t/y anhydrous alcohol 179.172 17.700 196.872-Shuangyang Ricestraw Papermill 17W000 t/y fluting paper 51.897 4.310 56.207-Jlutal Tannery 1,300.000 skins nd hides/y 114.335 23.750 138.085-Dslsn Gelatin Plant 750 t/y gelatin 51.838 3.800 55.638-Olan'en Flax Mill 5.000 Spindles exponsion 84.026 17.140 101.166-Yushu Modified Starch Plant 10,000 t/y modifled starch 48.651 8.590 57.241

529.919 75.290 605.209Jilin Province Livestock Processing

.. ....... ..... ........ .........

-Taf Ping sheep slaughter 500,000 sheep per year 36.700 8.330 45.030-De Hui cattle slaughter 50,000 cattle per year 64.315 11.260 75.575-Shuang Liao cattle slaughter 50,000 cattle per year 24.608 9.150 33.758-Shuang Yong deer products Assorted phrodislacs 29.818 9.500 39.318-Nonglan goose slaughter 1,100l000 geese per year 8.310 1.620 9.930-Nongsan goose feather factory 240 t/y feather processing 4.599 3.030 7.629-Nong'an garment factory 350,000 garments per year 4.022 8.470 12.492

172.372 51.360 223.732Llaoning Province Agro-Industries

-Haicheng applejuice Beverages 7500 t/y 34.683 6.720 41 .403-Taln Dogbane Poperfilt Fluting paper 23,000 t/y 70.060 8.150 78.210-Kangping Furfural Plant Furfural 1,000 t/y 7.653 0.750 8.403-Kaiyuan Nawthorn Processing Beverages 8,500t/y 37.510 13.080 50.590-Xlfeng Wild Herbs Dried herbs 1500 t/y 8.144 2.050 10.194-Xincheng peanut processing Protein/olt 22,706 t/y 72.358 12.830 85.188-LIaoyang Pectese plant Pectase 425 t/y 29.555 3.550 33.105-Longdheng Sesame oll Seswe oil 2385 t/y 8.622 6.000 14.622-Jinxi Detaishan cold store 1,500 T fruit cold store 8.091 4.040 12.131-Halcheng Detun cold store 1,000 T fruit/veg cold store 6.161 2.150 8.311

282.837 59.320 342.157 m xLIsoning Province Livestock Processing......... ........................... ...............

-Changtu cattle slaushter 30000 cattle per year 25.476 6.740 32.216-Changtu rabbit slaughter 850000 rabbits per year 8.515 2.260 10. m-Zhangwu goose abottolr 400000 geese per year 8.186 4.340 12.526

42.177 13.340 55.517

Total (Yuan) 1,027.305 199.310 1,226.615Total (USS) st S1 * Y8.7 118.081 22.909 140.990

January 14, 1994

CHINASONGLIAO PLAIN AGRI,CULTURAL DEVELOPMENT PROJECT

_.. SUMMARY OF RESEARCH Topics

Research Topic La Research areas Responsible organization Period Total cost(year) (Y)

1. Liaoning - Field Crops

1. Study on IPM for County: Changtu, Kanping, Gen. Station of Plant 5 600,000lkcorn, wheat, rice, Paku, Tieling, Kaiyuan, Protection, MOA; Provincialsoybean and cotton Zhangwu, Jinxian, AAS; Prefectural AAS

Heishan, Beizhen, Yixian,Liaoyang, Dengta, Tainan

2. Evaltiation of County: Changtu, Kanping, Provincial AAS, Prefectural 5Rhizobium inoculum Paku, Tieling, Kaiyuan, AASon leguminous crops Zhangwu, Jinxian,

Heishan, Beizhen, Yixian,Liaoyang, Dengta, Tainan

3. Evaluation of new County: Changlu, Kanping, Provincial AAS, Prefectural 5varieties/introductio Faku, Tieling, Kaiyuan, AASns, e.g., Amaranth Zhangwu, Jinxian,

Heishan, Beizhen, Yixian,Liaoyang, Dengta, Tainan

4. Field listing of County: Changtu, Kanping, Provincial AAS, Prefectural 5improved cultivation Paku, Tieling, Kaiyuan, AAStechniques Zhangwu, Jinxian,

Heishan, Beizhen, Yixian,Liaoyang, Dengta, Tainan

I-'P

Research Topic La Research areas Responsible organization Period Total cost(year) (Y)

III. Llaoning - Orrhardt

I. Cultural practices, Apples - Xingcheng, Instilute of Pomology, Liaoning 5 600,000 top grafting, Suizhong, Dataishan, Agricultural University,pruning, fertilizing, Haicheng, Nanshan, Jinxian Chinese Institute of Pomology,mulching, planting and Chaoyang CAASdensity, terracing Pears - Beizhenand establishment of Apricots - Yixian, Beipiahedges and and LlngyangIrrigation

2. Testing of new Apples - Xincheng, Institute of Pomology, Liaoning 5cultivars Suizhong, Dataishan, Agricultural University,

Haicheng, Nanshan, Jinxian Chinese Institute of Pomology,and Chaoyang CAASPears - BeizhenApricots - Yixian, Beipiaand Lingyang

3. Post-harvest Apples - Xincheng, Institute of Pomology, Liaoning 5technology Suizhong, Dataishan, Agricultural University,

Haicheng, Nanshan, Jinxian Chinese Institute of Pomology,and Chaoyang CAASPears - BeizhenApricots - Yixian, Beipia Land Lingyang

Research Topic La Research areas Responsible organization Period Total cost(year) (Y)

IL. Jilin - Field Crops

1. Study on IPM for Songpo, Songqi, Huajia, Gen. Station of Plant 5 1,232,0001corn, wheat, rice, Puyu, Wazhonggao areas Protection, MOA; Provincialsoybean and cotton AAS; Prefectural AAS

2. Evaluation of Songpo, Songqi, Huajia, Provincial AAS, Prefectural 5 -Rhizobium inoculum Fuyu, Wazhonggao areas AASon leguminous crops

3. Evaluation of new Songpo, Songqi, Huajia,' Provincial AAS, Prefectural 5varieties/ Puyu, Wazhonggao areas AASintroductions

4. Field listing of Songpo, Songqi, Huajia, Provincial AAS, Prefectural 5improved cultivation Puyu, Wazhonggao areas AAStechniques

H DfD

I 3

Research Topic La Research areas Responsible organization Period Total cost(year) (Y)

IV. Jilin - Orrhards

I. Planting density Experimental Orchard In Pomology Institute, Jilin 5 100,000Oktrials, distribution of Gongzhuling and model Agricultural Institutepollinators, fertilizer farms (2 ha each) inapplication Liufangzi and Sanjiazi

2. IPM for control of Experimental Orchard In Pomology Institute, Jilin Smajor fruit pests Gongzhuling and model Agricultural Institute

farms (2 ha each) InLUufangzi and Sanjiazi

3. Investigations on Experimental Orchard In Pomology Institute, Jilin Smaturity index of Gongzhuling and model Agricultural Institutefruits farms (2 ha each) in

Liufangzi and Sanjiazi

4. Post-harvest Experimental Orchard In Pomology Institute, Jilin 5technology Gongzhuling and model Agricultural Institute

farms (2 ha each) inLiufangzi and Sanjiazi

La Detailed annual research topics to be prepared and submiited to IDA for review.1k Research expenditure managed by PMO as a lump sum, also cover some demonstration/extension activities on farmers' field. f

a..

Research Topics Research Areas Responsible Period Total CostOrganization (Year) (Y)

1. Liaoning Irrigation& Drainage Component

1. Water Savinig Techniques Project counties County Water Conservancy 3 120,000Bureau

2. Reclamation or Project cointies 3 80,000Wasteland County Water Conservancy

Bureau

11. Jilin - Irrigation &Drainage Component

Project counties Cointy Conservancy Bureau 3 80,000 A1. Water Saviiig

Technqties Project counties County Conservancy Bureau 3 150,000 H xm x

2. Reclamation ofWasteland

CHINASONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Research programs - Livestock Component

…_____________________________________________________________________________._______________________

Research Topics Research Description Responsible Organization Period Total CostYear (Yuan)

…----------------------------------------------------------------__----------_.------------------------

Grassland Improvement Comparison of different Jilin Academy of Agicultural 3 260,000grassland Improvement Sciencestechniques and pasturedevelopment.

Beef Cattle Evaluation of performanceJilin Academy of Agicultural 5 200,000and quality of different Sciences

beef cattle crosses. C

Value of Maize stover Evaluate the nutritional Jilin Academy of Agicultural 3 150,000as feed value of maize stover Sciences

treated with differentsources of urea and

ammonia.

Amaranth as feed Experiment on the use of Jilin Academy of Agicultural 3 50,000 H xamaranth for goose and Sciences cattle fattening.

________------------------------------------_----------________________________________________

OHINAPONGLIAO PLAIN ACRIVULTURAL DEVELOPMENT PROJECT

TRANNG PROGRAM - ACRmCULlTRE/hfoRnCULcWm1 COMPONENrS

Total train-Trainees Training topics Location of training Duration nees (staff-(days) months) La

t. Liaoning - Field CropsExtension

County/ltownship staff Extension training on CATECs in Changtu, 15-36 days 207irrigated paddy and wheat; Kangping, Faku, Zhangwu,and IPM Heizhen, Liaoyang, Dengta &

Taian.

Parmer technicians Extension training on TATES in project counties as 5-10 days 1,730irrigated paddy and wheat; indicated above.and IPM

Parmers Production techniques TATEs in prject counties as 1-5 days 63,621indicated above.

11. Jiln - Field CropsExtension

Township staff Extension training on CATECs in Songpo, Songqi, 10-20 days 105irrigated rice Huajia and Wazhonggao areas

Farmer technicians Extension training on TATEs 5-10 days 300 m xIrrigated rice

Farmers Production techniques TATEs 1-5 days 4,800

Township staff Extension training on CATECs 10-20 days 100Irrigated wheat

Total train-Trainees Training topics Localion of training Duration nees (staff-(days) months) La

Parmer technician Extension training on TATEs 5-10 days 200irrigated wheat

Farmers Production techniques TATEs 1-5 days 1,160111. Liaoning - Farm

Machiner ServiceStations

Managers Management of machinery Coun? farm machinery training 7 days 179stations schoo

Equipment operators Repairs, maintenance and County farm machinery bureaus 5-7 days 179operation of farm and training schools coequipment

Tractor operators Operation and simple County machinery bureaus 2-5 days 179maintenance of tractors

IV. Jilin - Farm MachineryService Stations

Managers Management of machinery County/ltownship Agricultural 7 days 2,167stations Machinery Bureau

Equipment operators Repairs, maintenance and County farm machinery bureaus 5-7 days 2,167 a :operation of farm and training schoolsmachinery

Tractor operators Operation and simple County machinery bureaus 2-5 days 2,167maintenance of tractors

ta Phased equally over five years.

CIIINASONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

TRAINING PROGRAM - IRRIGATION AND DRAINAGE COMPONENT

Trainees Training Topics Location or training Duration (days) Total Trainees(staTff/months)

1. Llaonine-hrrifallon &Drainame component

1. Local Tratnine:

Village Technicians Irrigation Techniques Township Irrigation 2-3 3462Station

Township Irrigation Techniques & 5-10 312Technicians Management County Water

Conservancy Bureau 20 24 cCounty Technidans Irrigation Techniques &

Management Provincial TraiiningCenter

2. Overseas Training:

PMO, Provincial nnd Irrigation & Engineering USA/Japan I5 6county water resources Managementstan

Project Engineering & Australla/Thailand 15 6Financial 0Management USA 15 6 m mm

Groundwvater Modeliing & UAssessment

3. T.A

Seminar/Internatlonal Water Management Provincial Training 6 25Consultant Center

Trainee Training Topics Location of Duration Total TraidesTraining (days) (staff months)

H. Jiln-Irrigation& DingpComponeot

1. Local training

Village Technicians Irrigation Techniques Township Irrigation 2-3 400Station

Township Irrigation Techiques County Water 5-10 250Technidam. and Maagenat Conserancy Burea

County Technidans Irrigation Techniques Provindal Training 20 25an Management Center

FanonersIrrigation Techniques In Project Cotmtles 2-3 650

2. Overseas ainin

PMO, Provincial & - Project Engineering & I5County Water Finandal Management

resouces staff - Enginern Design of USArnluailand 15Irigation & Drainage

Systems 15 6- Water Saving Australa

Technique 15 6- Operation &

Maintenane (OSM)

(D X

3. TAProvincial TrainIng 6 25

Se,nnarIlnternational Water Manag d CenterConsultant

OSM Provincial Training 6 25Center

CHINA

SONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Project Cost Summary

Yuan '000 I Total USt 000 I TotalComponents ---------------------- -------- a- - Base ------ ------ ------ E--------------s.X Foreign easeLocal Foreign Total Costs Local Foreign Total Exchange Costs

A. irrigation and Drainage 147,416.4 108,193.3 255,609.7 9.5 16,944.4 12,436.0 29,380.4 42.3 9.50. Field Crop Development 41,107.9 146,451.0 181,558.9 7.0 4,M7.0 16,833.4 21,558.5 78.1 7.0C. orchard Development 155,292.1 108,527.7 263.819.8 9.8 17,849.7 12,474.4 30,324.1 41.1 9.80. Soiltlater Conservation 23,334.5 11,321.9 34,656.4 1.3 2,682.1 1,301.4 3,983.5 32.? 1.3E. Livestock Development 342,274.5 172,804.0 515,078.5 19.2 39,341.9 19,862.5 59,204.4 33.5 19.2F. Livestock ProcessIng 138,316.1 140,934.2 279,250.3 10.4 15,898.4 16,199.3 32,097.7 50.5 10.4G. Agro-Processing 321,911.? 604,912.0 926,823.7 34.5 37,001.3 69,530.1 106,531.5 65.3 34.5N. Aquaculture Development 99,852.3 77,308.8 177,161.1 6.6 11,477.3 8,886.1 20,363.3 43.6 6.6I. Project Management 14,609.4 31,154.0 45,763.4 1.? 1,679.2 3,580.9 5,260.2 68.1 1.7.,,............... ..... ..................... .. .... ..................... ...... ............

Total Base Costs 1,284,114.9 1,401,606.9 2,685,721.8 100 147,599.4 161,104.2 308,703.1 52.2 100.0

Physical Contigencies 63,354.7 123,315.7 186,670.4 7.0 7,282.1 14,174.2 21,456.4 66.1 7.0 IPrice Contingencies 353,375.5 100,630.0 454,005.5 16.9 40,617.9 11,566.7 52,184.5 22.2 16.9.................................... ..................................Total Project Costs 1,700,845.1 1,625,5--.6 3,326,397.7 123.9 195,499.4 186,845.1 382,344.6 48.9 123.9

---------------------------- s-s-------'-----------s-------------------s---------"-----s-"--s-- ssss------- tu- sssss-ss-ts-

January 7, 1994

m P

Annex 286 Table 2

CHINA

SOWGLIAO PLAIN AGRICLLTURAL DEVELOPHENT PROJECTSuMMry Accounts Cost SufmrY

. .................................................................. ....................................................................................................

_

Yuan '000 U '000 S TotaL

.---- - -- ----------- ---------- - -----------.------------------------S Foreign Base

Local Foreign Total Local Foreign Total Exchange Costs

. .......................................................................................................................

I. In ete mntA Land Acquis./Crop Corpn. 27,29.8 0.0 27,829.8 3,198.8 0.0 3,198.5 0 1.0

B. Civil Works1. Works 122,985.0 80,44S.9 203,433.9 14,136.2 9,247.0 23,383.2 39.5 7.6

2. SuiLdings 171,317.9 174,229.3 345,547.2 19,691.7 20,026.4 39,718.1 50.4 12.9

.................................... ........................................................................

Sub-Total 294,302.9 254,678.2 548,981.1 33,827.9 29,273.4 63,101.3 46.4 20.4

C. Equipmwnt L Machirwry1. Irrigation Equipment 61,216.0 76,446.8 137,662.8 7,036.3 8,787.0 15,823.3 55.5 5.1

2. Agriculture Equipment 3,998.6 7,459.4 11,458.0 459.6 857.4 1,317.0 65.1 0.4

3. Livestock Equipment 14,010.9 16,745.7 30,756.6 1,610.4 1,924.8 3,535.2 54.4 1.1

4. Livestock Proces. Equip 9,609.2 58,667.0 68,276.2 1,104.5 6,743.3 7,847.8 85.9 2.5

S. Agro-Processing Equip. 33,133.2 438,935.5 472,068.7 3,415.8 s0,452.4 53,368.2 93.7 17.4

6. Aquaculture Equipment 5,091.8 18,1s8.9 23,257.7 586.1 2,087.2 2,673.3 75.1 0.9

7. Office Equipment 1,701.8 10,389.4 12,091.2 195.6 1,194.2 1,389.8 85.9 0.5

............................................................................. .................................

Sub-TotaL 128,768.5 626,802.7 755,571.2 14,408.4 72,046.3 86,454.6 83.3 28.0

D. Vehicles1. Trucks 4,937.0 67,708.9 72,645.9 567.5 7,78.6 8,350.1 93.2 2.7

2. Tractors 3,243.1 44,549.9 47,793.0 372.8 5,120.7 5,493.4 93.2 1.8

3. IpLwments 5,770.6 11,185.5 16,956.1 663.3 1,285.7 1,949.0 66.0 0.6

................................. .......................................... .................................

Sub-TotaL 13,950.7 123,444.3 137,395.0 1,603.5 14,189.0 15,792.5 89.8 5.1

E. Materials1. Imported Materials 4,771.3 138,322.1 143,093.4 548.4 15,899.1 16, 447.5 96.7 5.3

2. Locat MateriaLs 250,391.7 90,249.6 340,641.3 28,780.7 10,373.5 39,154.2 26.5 12.7

.................. ....................................................... .................................

Sub-Total 255,163.0 228,571.7 483,734.7 29,329.1 26,272.6 55,601.7 47.3 18.0

F. Labor1. UnskilLed Labor 112,380.0 0.0 112,380.0 12,917.2 0.0 12,917.2 0.0 4.2

2. Manag emnt 3,479.0 3,540.0 7,019.0 399.9 406.9 806.8 50.4 0.3

.................................... ........................................................................

Sub-Totcl 115,859.0 3,540.0 119,399.0 13,317.1 406.9 13,724.0 3.0 4.4

G.Training1. Overseas Training 294.5 8,540.0 8,834.5 33.9 981.6 1,015.5 96.7 0.3

2. Domestic Training 19,588.2 19,931.8 39,520.0 Z,251.5 2,291.0 4,542.5 50.4 1.5

3. Research 1,077.4 1,096.3 2,173.7 123.8 126.0 249.9 50.4 0.1

.................................... ........................................................ ................

Sub-Total 20,960.1 29,568.1 50,528.2 2,409.2 3,398.6 5,807.8 58.5 1.9

H. InternationaL Conaultant 23.7 686.1 709.a 2.7 78.9 81.6 96.7 0.0

1. Working Capital 307,384.5 0.0 307,384.5 35,331.6 0.0 35,331.6 0.0 11.4

J. Others

1. Design 7,872.0 28,035.7 35,907.7 904.3 3,222.5 4,127.3 78.1 1.3

2. Supervision 58,344.0 59,367.5 117,711.5 6,706.2 6,82.9 13,530.1 50.4 4.4

3. Freight 4 Insurance 2,851.3 39,167.9 42,019.2 327.7 4,502.1 4,829.8 93.2 1.6

4. Misceltenous 50,805.4 7,744.7 58,550.1 5,839.7 590.2 6,729.9 13.2 2.2

.................................... ............ ............................................

Sub-Total 119,872.7 134,315.8 254,188.5 13,778.5 15,438.6 29,217.1 52.8 9.5

TotaL Basse Costs 1,284,114.9 1,401,606.9 2,685,721.8 147,599.4 161,104.2 308,703.7 52.2 100.0

Physical Contingencies 63,354.7 123,315.7 186,670.4 7,282.1 14,174.2 21,456.4 66.1 7.0

Price Contingencies 353,375.5 100,630.0 454,005.5 40,617.9 11,566.7 52,184.5 22.2 16.9

.................................... ........................................................ ................

TotaL Project Costs 1,700,845.1 1,625,552.6 3,326,397.7 195,49.4 186,645.1 382,344.6 48.9 123.9

January 7, 1994

CHINA

SONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECTLIAONING PROVINCE

Project Cost Summ ry

VuanO0o UStOo X Total------.. X foreign Base

Local Foreign Total Local Foreign Total Exchange Costs.. ................. ....... ................... . ................................ ... ... ... .... . ............. .

A . Irrigation and Drainage 90058.4 78622.8 168681.2 12161.7 7226.9 19388.6 46.6 14.2* field Crop Developnent 16446.2 55021.? 71467.9 2218.6 5996.1 8214.? 77.0 6.0C Orchard Development 127208.8 91518.5 218727.4 15533.3 9607.8 25141.1 41.8 18.4D . Livestock Development 98937.? 47916.9 146854.5 12572.6 4307.2 16879.8 32.6 12.4E . Livestock Processing 28785.2 26732.0 55517.2 3679.7 2701.6 6381.3 48.2 4.7F . Aquaculture Development 99852.3 77308.8 177161.1 12815.5 7547.8 20363.3 43.6 14.9G . Agro-Processing 123382.1 198332.9 321715.1 15908.9 21069.9 36978.7 61.6 27.1N . Project Mnagement 9664.5 16675.4 26339.9 1298.5 1729.0 3027.6 63.3 2.2 1

.. .. ................. ............ ...................... ... .. .... .... . .... ........... ... . .

Total BASELINE COSTS 594335.3 592129.1 1186464.3 76188.8 60186.4 136375.2 44.1 100.0Physical Contingemices 32813.8 53186.6 86000.4 3771.7 6113.4 9885.1 61.8 7.2Price Contingencies 164027.2 40828.3 204855.5 10979.3 12567.3 23546.6 53.4 17.3

-- - - - - - - - - - - - - - - - . .... ... ..... ........ ....... . - - - - - - - - - - -

lotal PROJECTS COSTS 791176.&- 686144.0 1477320.3 90939.8 78867.1 169806.9 46.4 124.5

___._ , _,,_, _.. .................... ............................................ ...... ........... .. _.... ........... __....... _._._.. . . . .

1/7/1994 16:26

(D

- 88 -

Annex 2Table 3.1

CHINASONGLIAO PLAIN AGRICOILTLtAL DEVELOPMENT PROJECT

LIAONING PROVINCESumary Accounits CaSt Sumry

YuanOOO uSSOoO 2 Total---- ----------------------.----- ----------------------------- Foreign Base

Local Foreign Total Local Foreign Totsl Exchange Costs

1. IVESTIMENT COSTS

A. Lard Acquisition 13226.4 0.0 13226.4 1520.3 0.0 1520.3 0.0 1.1B. CiviI Works

1. Uorks 69565.7 45505.4 115071.1 9258.6 3968.0 13226.6 39.5 9.7

2. buildings 56469.9 57460.6 113930.5 7857.3 5238.2 13095.5 50.4 9.6., ,,...... ,,,,.......................... ....................... .. .. _. ... --------------------

Sub-Total 126035.6 102966.0 229001.6 17115.9 9206.2 26322.0 45.0 19.3C. EquiPment/Machinery

1. Irrigation Equipment 479U8.4 59928.1 107'916.5 6822.3 5581.9 12404.2 55.5 9.12. Agriculture Equipment 1390.8 3527.3 S418.0 280.2 342.5 622.8 65.1 0.53. Livestock Equipwnt 3981.4 4969.2 8950.5 566.0 462.8 1020.8 55.5 0.8

4. Livestock Processing Eq. 2158.5 13178.3 15336.9 352.6 1410.3 1762.9 85.9 1.35. Agro-processing Equip. 10018.2 137619.1 147637.4 1697.0 15272.8 16969.8 93.2 12.46. Aquaculture Equipment 5098.8 13158.9 23257.7 802.0 1871.3 2673.3 78.1 2.07. Office Equipment 818.0 4993.8 5811.8 133.6 534.4 668.0 835.9 0.5

Sub-Total 71954.1 242374.7 314328.7 10653.7 25476.1 36129.7 77.1 26.5D. VehicLes

1. Trucks 3060.4 42040.2 45100.6 518.4 4665.6 5184.0 93.2 3.82. Tractors 942.0 12940.1 13882.1 159.6 1436.1 1595.6 93.2 1.23. liwiements 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Sub-Totcl 4002.4 54980.3 58982.7 678.0 6101.7 6779.6 93.2 5.0E. Materists

1. Imported Materials 2932.1 84984.2 87916.3 505.5 9599.8 10105.3 96.7 7.42. Local Materials 132829.1 45621.8 178450.9 16714.3. 3797.3 20511.6 25.6 15.0

................................. .............................. ......................

Sub-Total 135761.2 130606.0 266367.2 17219.8 13397.1 30616.9 49.0 22.5

F. Labour1. Unskilled Labor 67680.6 0.0 67680.6 7779.4 0.0 7779.4 0.0 5.72. management oS2.0 866.9 1718.9 118.5 79.0 197.6 50.4 0.1

Sub-Total 68532.6 66. 9 69399.5 7597.9 79.0 7977.0 1.2 5.8G. Training

1. Overseas Training 157.6 4569.7 4727.3 27.2 516.2 543.4 96.7 0.4

2. Domestic Training 5939.5 6043.7 11983.2 826.4 551.0 1377.4 50.4 1.03. Research 264.1 268.7 532.8 36.7 24.5 61.2 50.4 0.0

................................. .... _......................... . ......................

Sub-Total 6361.1 108U2.1 17243.2 890.3 1091.6 1982.0 63.1 1.5H. Technical Assistance

1. International Consultant 3.5 101.5 105.0 0.6 11.5 12.1 96.7 0.02. Local Consultant 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

................................. ............................... ---------------------

Sub-Total 3.5 101.5 105.0 0.6 11.5 12.1 96.7 0.01. Working Capital 11U81.6 0.0 11831.6 13607.1 0.0 13607.1 0.0 10.0J. Others

1. Design 3167.9 11282.1 1450.0 490.3 1162.6 1660.9 78.1 1.22. Supervision 23272.9 23681.1 46954.0 3238.2 2158.8 5397.0 50.4 4. 03. Freight Z Insurance 829.4 11393.1 12ZZ2.4 140.5 1264.4 1404.9 93.2 1.04. Niscellenous 22806.7 2995.3 25801.9 2728.3 237.4 2965.7 11.6 2.2

................................. ................................................... .......................... ....................... ...........

Sub-Total 50076.8 49351.6 99428.3 6605.3 4823.3 11428.5 49.6 8.4..._........... ............................. ................... _ ....................................... ----------------------

................................. .............................. ..................... ..............................................................

Total BASELINE COSTS 594335.3 592129.1 118646.3 7618B.8 60186.4 136375.2 44.1 100.0

Physical ContIngencies 32813.8 53186.6 86000.4 3771.7 6113.4 95aS.1 61.8 7.2

Price Contingencies 164027.2 40828.3 204855.5 10979.3 12567.3 23546.6 53.4 17.3................................. .............................. . ......................

Total PROJECTS COSTS 791176.2 686144.0 1477320.3 90939.8 7U867.1 169806.9 46.4 124.5

.................................................... .......................................................................

1/7/199W 16:30

- 89 -

Annex 2Table 3.2

CHI NASONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

LIAONING PROVINCE

Summry Accounts by Year

BaSe Costs Foreign Exchange

94/95 95/96 96/97 97/98 98/99 Total X Amomt

1. INVESTMENT COSTS

A. Lsnd Acquisition 13226.4 0.0 0.0 0.0 0.0 13226.4 0.0 0.0B. Civil Work&

1. Works 50505.8 30735.1 15414.5 11212.4 7203.2 115071.1 39.5 45505.42. Buildings 69952.8 30988.9 12504.6 48.2 0.0 113930.5 50.4 57460.6

Sub-total 120458.6 61724.0 27919.1 11696.6 7203.2 229001.6 45.0 102966.0C. Equipment/Machinery

1. Irrigation Equipment 41192.5 26633.3 17814.5 14049.5 8226.7 107916.5 55.5 59928.12. Agriculture Equipnent 2649.9 1430.9 975.6 266.5 95.2 5418.0 65.1 3527.33. Livestock Equipment 3365.1 3369.6 Z197.2 18.6 0.0 8950.5 55.5 4969.24. Livestock Processing Eq. 4629.5 10707.3 0.0 0.0 0.0 15336.9 85.9 13178.35. Agro-processing Equip. 54899.3 92738.1 0.0 0.0 0.0 147637.4 93.2 137619.16. Aquaculture Equipment 9258.7 13087.6 473.5 437.9 0.0 23257.7 78.1 18158.97. Office Equipment 5268.3 543.5 0.0 0.0 0.0 5811.8 85.9 4993.8

Sub-total 121263.3 14S510.3 21460.7 14772.4 8321.9 314328.7 77.1 242374.7D. Vehicles

1. Trucks 24306.9 15588.6 5038.5 160.6 5.9 45100.6 93.2 42040.22. Tractors 5452.6 4155.8 2976.8 943.2 353.7 13882.1 93.2 12940.13. Implaments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Sub-total 29759.6 19744.4 8015.4 1103.8 359.6 58982.7 93.2 54980.3E. Materials

1. Inmorted materials 21266.1 23702.1 19983.8 15369.8 7594.3 87916.3 96.7 84984.22. Local materials 63047.8 59637.8 43175.8 10599.8 1989.7 178450.9 25.6 4S621.8

Sub-total 84314.0 83339.9 63159.6 25969.6 95J4.1 266367.2 49.0 130606.0F. Labour

1. Unskilled labor 20004.0 19180.3 14179.0 9882.9 4434.5 67680.6 0.0 0.02. Management 668.2 693.6 296.6 58.1 2.4 1718.9 50.4 866.9

Sub-total 20672.2 19873.9 14475.6 9941.0 "436.9 6939.5 1.2 866.9G. Training

1. Overseas Training 3719.0 895.8 37.5 37.5 37.5 4727.3 96.7 4569.72. Domestic Training 3864.9 5198.9 1568.5 804.0 546.9 11913.2 50.4 6043.73. Research 446.8 49.6 12.1 12.1 12.1 532.8 50.4 268.7

Sub-total 8030.6 6144.3 1618.1 853.6 596.5 17243.2 63.1 10882.1M. Technical Assistance

1. International Consultant 60.0 45.0 0.0 0.0 0.0 105.0 96.7 101.52. Local Consultant 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Sub-total 60.0 45.0 0.0 0.0 0.0 105.0 96.7 101.5I. Working Capital 14887.3 15721.6 57629.6 15573.0 14570.0 113081.6 0.0 0.0J. Others

1. Design 12161.4 1925.9 362.6 0.0 0.0 1450.0 78.1 11282.12. Supervision 6726.9 34172.1 2776.9 2095.4 1182.7 46954.0 50.4 23681.13. Freight 9 Insurance 4588.3 7634.1 0.0 0.0 0.0 12222.4 93.2 11393.14. Miscellenous 12671.7 5907.4 3692.4 2306.8 1223.6 25801.9 11.6 2995.3

Sub-total 36148.3 49639.6 6832.0 4402.2 2406.3 99428.3 49.6 49351.6

Total BASELINE COSTS 448U20.4 404743.0 201110.2 84312.3 47478.4 1186464.3 49.9 592129.1

Physical Contingencies .1YUb.d JSU81.6 11261.4 5409.5 2581.2 86000.4 61.8 53186.6Price Contingencies 37725.3 60316.7 55955.3 29964.1 20894.1 204855.5 19.9 40828.3

................................................................... .......................Total PROJECT COSTS 522452.5 495901.4 268326.8 119685.9 70953.7 1477320.3 46.4 686144.0

---------------- s sssnssans . s. . s

Taxes 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Foreign Exchange 269411.7 276872.9 78369.7 40652.2 20837.5 686144.0 100.0 686144.0

..........................................................................................................................

1/7/1994 16:30

StJtGtAlo PtAlA AGOItIt AtURAt trvFtDrwttEI rIOJECI

Staw..ry Accouits by Tenr

totals Incliultq tongtIhgencies totals Includinj ContingencmesYtiml()0 ustooo

94/95 95/96 96/91 97/98 98/99 Total 94/5 95/96 96/97 9798 98/99 total.......... s2 ...... ** ....................t ... ...... a............*fl3l .... .. 0* ................................1. IuVESIttEt costS................

A. Ltns r Acquisltion 14615.2 0.e 0.0 0.0 0.0 14615.2 1679.9 0.0 0.0 0.0 0.0 1679.90. civil Uorks1. orkts 5975Z.3 30932.4 20785.7 16012.4 10043.9 11.6326.7 E88.I 4475.0 2389.2 l8o.O.5 1246.4 16819.22. Buldilngs 86283.3 41896.4 18202.6 749.9 0.0 147132.3 9917.6 4815.7 2092 3 06.2 0.0 16911.8

Stub-lotl 146035.6 80828.8 388M.4 16762.3 10843.9 293459.0 1678S.r 920. 7 4481.4 1926.7 1246.4 3730.9

C. E quiraent/luatchlneryI. IrrigltIon iqulpwrit 42139.9 33nno.2 23361.0 19374.6 11n38.7 135941.4 5544.8 3802.3 26,5.2 2227.0 1366.2 15625.42. Agriculture tEueir'.nt 3084.2 1756.2 1257.6 359.7 134.0 6591.6 354.5 201.9 144.6 41.3 15.4 751.73. tIvetlack Equtlvnst 3940.9 4185.5 2811. 3 25.6 0.0 11(33.2 453.0 481.1 331.2 2.9 0.0 1268.24. lIvestock Processing Eql. 5316.0 12797.5 0.0 0.0 0.0 II13.4 611.0 1471.0 0.0 0.0 0.0 20'2.05. Agro prc.esslr'g Equlip. 62739.4 109799.0 n.o .00 0.0 172538.5 7211.4 12620.6 0.0 0.0 0.0 19832.06. Aquaculture EquIpment 10686.1 15800.7 596.1 573.6 0.0 27656.5 1228.3 1116.2 68.5 65.9 0.0 3178.97. office Equipment 6049.4 649.6 0.0 0,0 0.0 6699. 0 695. 74. 0.0 0.0 0.0 770.0

Stb-oetal 140055.9 178068.7 28096.0 20133.5 12019.7 378573.8 16098.4 20467.7 3229.4 2337.2 1381.6 £3514.2

D. Vehlclet1. Irtcks 27568.6 111412.1 6116.6 202.9 7.7 52357.8 316a.8 2116.3 708.8 23.3 0.9 6018.12. trwclors 6231.3 4920.3 36A..3 1191.6 460.4 16447.0 116.2 565.6 418.8 137.0 s2.9 1590.53. IOplements 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Stb-lotal 33799.9 23332.4 9809.9 1394.5 468.1 68804.8 3885.0 2681.9 1127.6 160.3 53.8 7908.6E Materllas

1. Imported Materials 24248.2 27936.4 24297.0 19254.9 9787.1 105524.4 270i.1 3211.1 2792.8 2213.2 1125.0 12129.z2. toetl Miaterials 73716.1 75196.0 S ?s6. 15724.5 3203.4 225726.4 8473.1 8643.2 6653.6 1807.4 3,8.2 25V945.6

SEA)- total 97964. 103132.4 21813.9 34979.7 1299.s5 331250.6 11260.3 11854.3 9446.4 £020.7 1493.2 38074.8

I. t nbnur1. Unskilled Itbor 23178.8 26534.2 22232.1 11192.2 8486.3 98223.5 2733.2 3049.9 2555.4 1976.1 975.4 11290.12. Mlanagement 742.9 811.3 373.6 73.? 3.2 2004.7 85.4 93.3 42.9 8.5 0.4 230.4...................................................................

....................................................................................................................................

Stbltotal 24521.? 27345.4 22605.7 1265.1 8489.5 100228.3 2816.6 3143.2 2598.4 1984.6 975.8 11520.5

C. trainIng1. Overseas training 3855.0 959.8 41.5 42.7 43.9 4942.9 443.1 110.3 4.8 4.9 5.0 568.12. gometlc trainint 4185.4 5974.1 1922.0 1019.4 72m.9 13829.4 481.1 686.7 220.9 111.2 83.7 1589.63. Ieseerct 471.2 56.4 14.6 15.4 16.1 579.7 54.6 6.5 1.7 1.8 1.9 66.6,...................................................................

. .............................. ......... .............. ...................................................

uk-total .5851r.5 6990.9 1978.0 10?7.5 788.0 19351.9 979.0 803.6 227.4 123.8 90.6 2224.4

U. Technical Assistance|. internatItoal Comsultent 62.2 48.2 0.0 0.0 0.0 110.4 7.1 5.5 0.0 0.0 0.0 12.7 1 2. total Consultant 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 O ................................................................. .................... * ------------------------------------------.

Sth-Ittel 62.2 £8.2 0.0 0.0 0.0 110.4 7.1 5.5 0.0 0.0 0.0 12.7

1. Uorkiln Capital 16760.6 19478.9 75929.4 21936.3 21926.9 156032.1 1926.5 2239.0 8727.5 2521.4 25ZO.3 11934.7J. Others

1. Oeqlgn 14036.3 2325.2 456.6 0.0 0.0 16818.0 1613.4 267.3 57.5 0.0 0.0 1933.12. Supervislon 7271.6 35J969.7 3431I. 2718.8 1612.3 54004.1 815.5 4479.3 394.4 312.5 185.3 6207.43. freight A Insurance 4766.9 8216.9 0.0 0.0 0.0 12983.6 547.9 944.5 0.0 0.0 0.0 1492.14. Mlscecllenou 14044.9 7163.7 447.3 32171.6 11ri4.6 31011.0 1614.4 023.4 557.2 369.8 208.6 3573.3...................... ............................................................. -........................... . .................................... ..............................

Stb-lotal 40119.6 56675.5 8735.5 5936.3 3427.0 11489.1.9 £611.5 6514.4 1004.1 682.3 393.9 13206.2.ITT_TT== r ... : fr,7T= .... -==:-: .....:r:::s2e-*- -- =t-t- .. sr ss 2t::=-:t.*! tt=-= t,ttT ts,.--

lotal PNOJEtC COStS 522452.5 495901.4 268326.8 119615.9 70953.7 1477320.1 6il052.0 57000.2 30842.2 13757.0 8155.6 169806.9,............... ...... ................... .............. ..... ........ e ......... ...................................

1/11/1994 14:02

CHINASOWGLIAO PLAIN AGRICULTURAL DEVELOP8ENT PROJECT

JILIN PROVINCEProject Cost SLimry

YuanOOO USSOO X Total----- ------------------------------ X Foreign Base

Local Foreign Total Local Foreign Total Exchange Costs

A . irrigatlon and Dralnage1. Jilln IrrigationtDrainage 12925.2 10660.4 23585.6 1735.3 975.7 2711.0 45.2 1.62. Changchun Irrig.ZDrainage 44432.8 18910.1 63342.9 5596.6 1684.2 7280.8 29.9 4.2

Sub-Total 57358.0 29570.5 86928.5 7331.9 2659.9 9991.8 34.0 5.8a . Field Crop Development

I. Jilin Field Crop 999.7 59082.4 69082.1 1423.1 6517.4 7940.5 85.5 4.62. Changchun Field Crop 14662.0 32346.9 47008.9 1980.4 3422.9 5403.3 68.8 3.1

-- - - - - - - - - - - - - - - - -- - - - - - - -- - - - - - - . . ...... ........ .......................... .......... ....... .

Sub-Total 24661.7 91429.3 116091.0 3403.5 9940.3 13343.8 78.8 7.7C . orchard Development

1. Jilin orchard Developaent 28083.3 17009.2 45092.5 3487.7 1695.3 5183.1 37.7 3.02. Changchun Orchard Devpt. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Sub-Total 28083.3 17009.2 45092.5 3487.7 1695.3 5183.1 37.7 3.00 . Changchun SolitUater Con. 23334.5 11321.9 34656.4 2891.6 1091.9 3983.5 32.7 2.3E . Livestock Development

1. Jilin Livestock Devpt. 147162.3 80180.5 227342.8 18588.2 7243.1 26131.4 35.3 15.22. Changchun Livestock Devpt 96174.5 44706.6 140881.1 12206.7 3986.5 16193.2 31.7 9.4 I

............. .................... . .. ------------------------------ . . --...-----------..--

Sub-Total 243336.8 124887.1 368223.9 31095.0 11229.6 42324.6 33.9 24.6r . tivestock Processing

1. Jilin Liv. Processing 42426.4 36362.6 78789.0 5452.6 3603.6 9056.2 46.2 5.32. Changchun Liv. Processing 67104.4 77839.6 144944.0 8572.2 8088.0 16660.2 53.7 9.7

Sub-Total 109530.9 114202.2 223733.0 14024.9 11691.6 25716.4 51.0 14.9C . Agro-processing

1. Jilin Agro-Processing 109747.5 243929.2 353676.7 14485.4 26167.1 40652.5 69.0 23.62. Changchun Agro-Processing a8782.1 162649.8 251431.9 11631.8 17268.4 28900.2 64.7 16.8

.... ..... .... ...... ...........--.--. ------------------------------- -------------------......

Sub-Total 198529.6 406579.1 605108.7 26117.2 43435.5 69552.7 67.2 40.4N . Project Management *

1. Jilin Prolect Management 3333.3 10535.0 13868.3 477.0 1117.1 1594.1 76.0 0.9 o X2. Changchun Project Mgt. 1611.7 3963.6 5555.3 227.5 411.1 638.5 71.0 0.4

….. …-- ----------------------Sub-Total 4944.9 14478.6 19423.6 704.4 1528.2 2232.6 74.5 1.3

. .----... ......................Total BASELINE COSTS 689779.8 809477.9 1499257.7 89056.2 83272.3 172328.5 48.3 100.0

Physical Contingencies 30540.9 70129.1 100670.0 3510.4 8060.8 11571.3 69.7 6.7Price Contingencies 189348.3 59801.7 249150.0 11993.0 16644.9 28637.9 58.1 16.6

------------------- ..... ......................

Total PROJECTS COSTS 909668.9 939408.7 1849077.7 104559.6 107978.0 212537.7 50.8 123.3=22 ------- --- U=3-=3UU3U-- --- S23-- 3UWU23= U2323su 2=r=2==W- =uzU

.......................................................................................................... _

1/7/1994 15:20

- 92 -

Annex 2Table 4.1

CHINASOUGLIAO PLAIN AGRIaUL TURAL DEVELOPMENT PROJECT

.JILINI PROVINCEStUiMry ACcounits Cast SummNary

TuanOGO ussooo % Total.... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .. Foreign Base

Local Foreign Total Local Foreign Total Exchange Costs

I. iNVESTMENT COSTS

A. Land Acquisition 14603.4 0.0 14603.4 1678.6 0.0 1671.6 0.0 1.0I. Civil Works

1. Works 53419.3 34943.5 8832.8 7109.6 3047.0 101S6.6 39.5 5.92. Buildings 114848.0 116768.7 231616.7 15978.6 10644.0 26622.6 50.4 15.4

Sub-Total 168267.3 151712.2 319979.4 23088.2 13691.0 36779.2 47.4 21.3C. Fquipment/Klachlrery

1. Irrigation Equipment 13227.6 16518.7 29746.3 1880.5 1538.6 3419.1 55.5 2.02. Agriculture Equipment 2107.8 3932.1 6039.9 312.4 381.8 694.2 65.1 0.43. Livestock Prod. Equipment 10030.2 11776.5 21806.6 1414.5 1092.0 2506.S 54.0 1.54. Livestock Processing Eq. 7450.7 4.5488.7 52939.5 1217.0 4868.0 6085.0 85.9 3.5S. Agro.ProceSSing Equip. 23115.0 301316.4 324431.4 3905.8 33385.2 37291.0 92.9 21.66. AQuaculture Equipment 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.07. Office Equipuent 883.8 5395.6 6279.3 144.4 577.4 721.8 815.9 0.4

Sub-Total 56815.1 384428.0 441243.1 8874.6 41843.0 50717.6 87.1 29.40. Vehicles

1. Trucks 1868.6 25668.7 27537.3 316.5 2848.7 3165.2 93.2 1.82. Tractors 2301.1 3`1609.8 33910.9 389.8 3508.0 3897.8 93.2 2.33. Implements 5770.6 11185.5 16956.1 850.3 1098.7 1949.0 66.0 1.1

Sub-1otal 9940.3 68464.0 78404.3 1556.6 7455.4 9012.0 87.3 5.2E. Materiass

1. Imported Materials 18339.2 53337.9 55177.1 317.1 6025.1 6342.2 96.7 3.72. Local materials 117S62.6 44627.8 162190.46 14923.2 3719.4 18642.6 27.5 10.8

Sub-Total 119401.8 97965.7 217367.5 15240.3 9744.4 24984.8 45.1 14.5F. Labour

1. Unskilled labor 44699.4 0.0 44699.4 5137.9 0.0 5137.9 0.0 3.02. management 2627.0 2673.1 5300.2 365.5 243.7 609.2 50.4 0.4

.-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Sub-Total 47326.4 2673.1 49999.5 5503.4 243.7 5747.1 5.3 3.3G. Training

1. Overseas Training 136.9 3970.3 4.107.2 23.6 448.5 472.1 96.7 0.32. Comestic Training 13648.7 13888.1 27536.8 1899.1 1266.1 3165.2 50.4 1.83. Research 813.3 827.6 1640.9 113.2 75.4 188.6 S0.4 0.1

... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Sub-Tots( 14598.9 18686.0 33284.9 2035.9 1790.0 3825.8 56.1 2.2H. Technical Assistance

1. International Consultant 20.2 584.6 604.8 3.5 66.0 69.5 96.7 0.02. Local Consultant 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

... . . . . . . . . . . . . . . - - - - - - - - - - - - - - - . . . . . . . . . . .Sub-Total 20.2 584.6 604.8 3.5 66.0 69.5 96.7 0.0I. Working Capital 189002.9 0.0 1891002.9 21724.5 0.0 21724.5 0.0 12.6J1. Others

1. Design 4704.2 16753.6 21457.8 739.9 1726.5 2466.4 721.1 1.42. Supervision 35071.1 35686.4. 70757.5 4879.8 3253.2 8133.0 50.4 4.73. Freight 4 Insurance 2021.9 27774.8 29796.7 342.5 3082.4 3424.9 93.2 2.04. Miscellenous 28006.3 4749.6 32755.9 33818.5 376.5 3765.0 14.5 2.2

... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Sub-Total 69803.5 84964.4 154767.9 9350.8 8438.6 17789.4 54.9 10.3

Total BASELINE COSTS 689779.8 809477.9 1499257.7 819056.2 83272.3 172328.5 4-8.3 100.0Physical Contingencies 30540.9 70129.1 100670.0 3510.4 8060. 11571.3 69.7 6.7Price Contingemicis 189348.3 59801.7 249150.0 11993.0 16644.9 28637.9 58.1 16.6

Total PROJECTS COSTS 909668.9 939408.7 1849077.7 104559.6 107978.0 212537.7 50.8 123.3......... ........ ......... ........ ....... U.......UU......... ........ . ZU...... ........ ......... ........ ........

CHINASONGIIAtO PLAIN ACRICIJLTUtAL DEVELOPMENT PROJECT

JILIN PROVINCE

Suuwry Accounts by Tear

Ease Costs Foreign Exchange

94/95 95/96 96/9- 97/98 98/99 Total I Awaomnt

1. INVEStMENT COSTS,...................

A. Lwnd Acquisltion 14603.4 0.0 0.0 0.0 0.0 14603.4 0.0 0.08. Civit WIorks1. Vorks 41582.6 26453.9 15535.2 2240.6 2250.5 88362.8 39.5 34943.52. Buildings 134034.3 72857.9 24555.0 169.5 0.0 231616.7 50.4 116768.7St-tolotl 175616.9 9311.8 40390.2 2410.1 2250.5 319979.4 41.4 151712.2

C. Equipment/Machinery1. IrrigatIon Equi,mment 8033.5 8248.3 7196.2 3689.7 2578.6 29746.3 55.5 16518.72. Agriculture Equipment 2180.5 1323.0 1159.2 830.4 546.7 6039.9 65.1 3932.13. Livestock Prod. Eequipment 5936.9 12474.0 1317.9 890.5 1187.4 21806.6 54.0 11776.54. tivestock Processing Eq. 9334.3 43605.1 0.0 0.0 0.0 52939.5 85.9 45488.75. Agro-Processing Equip. 61364.3 184028.1 79039.0 0.0 0.0 324431.4 92.9 301316.46. Aquaculture Equipment 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.07. office Equipment 4818.2 1461.1 0.0 0.0 0.0 6279.3 85.9 5395.6sub-total 91667.8 251139.6 88712.3 5410.7 4312.7 441243.1 87.1 384428.0D. Vehicles1. Trucks 10166.1 16487.0 442.1 442.1 0.0 27537.3 93.2 25668.72. Tractbrs 7054.5 6961.7 6631.6 6631.6 6631.6 33910.9 93.2 31609.83. Ielements 3399.2 3858.9 3232.6 3232.6 3232.6 16956.1 66.0 11185.5Sut-total 20619.8 27307.6 10306.3 10306.3 9864.2 70404.3 87.3 68464.0E. Materinis1. loprted Mnterilnts 4870.8 11734.4 11745.4 12826.0 14000.5 55177.1 96.7 53337.9 '°2. Local Materials 74104.2 63549.1 21107.7 1642.0 1787.4 162190.4 27.5 44627.8sub-total 78975.0 75283.6 32853.0 14468.0 15787.8 217367.5 45.1 97965.7

*. tabour1. Unslilled labor 9877.6 12599.8 11956.0 4554.6 5711.4 44699.4 0.0 0.02. mnnsgewent 1496.3 2441.6 1338.0 12.1 12.1 5300.2 50.4 2673.1Sub-total 11373.9 15041.4 13294.0 4566.7 5723.5 49999.5 5.3 2673.1

G. Iraining1. oversems training 3476.9 630.3 0.0 0.0 0.0 4107.2 96.7 3970.32. omestic training 9448.4 13354.0 2268.6 1271.2 1194.6 27536.8 50.4 13888.13. Research 447.3 9ZI.2 151.3 90.8 30.3 16140.9 50.4 827.6Sti-totnl 13372.6 14905.5 2419.9 1362.0 1224.9 31284.9 56.1 186.0

N. Technical Assistalnce1. Internatlenal Consultant 0.0 604.8 0.0 0.0 0.0 604.8 96.7 584.62. tocal Canmultant 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Sub-total 0.0 604.8 0.0 0.0 0.0 604.8 96.7 584.61. Working Capital 23903.9 23989.0 87370.0 26880.0 26860.0 189002.9 0.0 0.0 . D

J. Others 15748.4 767.2 4060.7 451.0 430.5 21457.8 78.1 16753.6 J 02. Supervision 4081.3 57737.3 5312.9 1764.0 1862.0 70757.5 50.4 35686.4 0 >I3. Freight A Insurance 1440.9 28355.9 0.0 0.0 0.0 29796.7 93.2 27774.84. MIsceltenous 20025.3 6110.6 3787.4 1313.7 1518.9 32755.9 14.5 4749.6 .- sSub-total 41295.8 92971.1 13161.0 3528.6 3811.4 154767.9 54.9 84964.4......................................................................................

lotal BASELINE COSTS 471429.2 600554.4 288506.7 68932.4 69835.0 1499257.7 54.0 809477.9Physical Contingencies 34313.5 42379.4 17253.0 3370.4 3353.7 100670.0 69.7 70129.1Price Contingencies 43218.8 o4041.7 70450.6 22619.9 28818.9 249150.0 24.0 59801.7................................................................... ......................

total PROJECI COSTS 548961.4 726975.5 376210.4 94922.8 102007.7 1849077.7 50.8 939408.7-=:s:wse:---- ... T.z-*...-------- ... S... .... =Z2 ... 22* ....... * .... a... *t * sts

Toses 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Foreign Exchange 262782.8 448357.0 158741.9 34271.3 35255.7 939408.7 100.0 939408.7...................................................... ................................................ ..................1/?/1994 15:21

CHINA5ONClAO PLAIN ACRICUtItAtAt fVEWLPt PROJECT

JILIN PsOVIscSumr Acemts by year

totsls Inctlding Caelteing l . Totals Including ContinyencIes-tIuem USO00

.............................................. ......................................................... ............................... ........................................... ...................................

94/95 9/96 96/97 V7/V3 9s/ total 94/n M9/96 96/97 VI/96 91/99 total

1. IEvsI"EUJ Cosls....................

A. tend Acquisitlen 16100.2 0.0 0.0 0.0 0.0 16100.2 1850.6 0.0 0.0 0.0 0.0 1I50.6B. cit 1wors1. wMb5 4919.5 33509.5 21353.0 3199.5 3387.9 110645.5 5654.? 1851.6 2454.4 367.6 389.4 1271, o;2. guildings 165335.3 997110. 35751.9 262.5 0.e 30060.S 19004.1 11346.1 4109.4 30.2 0.0 14489.

................................................................... ............................................................................................. .................................

Sub-lothl 214530.8 132220.2 57104.9 3462.2 330'.9 410706.0 24658.7 15197.7 6563.8 391.0 389.4 4207.6

C. fqulpasntuachblnery1. irrigation fqulipnt 9407.9 10244.1 9436.? 5088.3 3725.4 3903.2 1061.4 1t77.6 1084.7 584.9 428.2 4356.72. Agrlculture Equipwnt 2533.9 1623.? 1494.4 1120. ,70.1 7`546.9 291.7 186.6 M71.6 120.8 88.5 867.S3. tlvtesoch Prod. fIqulmnt 6913.5 15518.2 1720.2 1220.1 1715.5 27148.4 79.8 1783.7 191.6 141.2 197.2 3120.54. Llivstock Processing 1q. 101`0.4 52117.1 0.6 0.0 0.0 62035.5 1232.0 5990.5 0.0 0.0 0.0 7222.5) .Agre-Proeeeslng Equip. 70I55.6 217996.1 96734.7 0.0 0.0 304886.3 8063.9 25057.0 11113.9 0.0 0.0 44239.86. Aqeculture ftquint 0.0 0.6 0.6 0.0 0.0 0.0 0.6 0.0 0.3 0.0 0.0 0.07. offIce fulpmnt 5532.7 1746.3 0.0 0.0 0.0 7`279.0 635.9 20.7I 0.0 0.0 0.0 336.7

Suh-loisl 105311.0 299246.3 109391.9 743'.1 6211.0 527599.3 12104.? 34396.1 IS24.0 854.8 713.9 6043. 6

0. VehlclesI. truces S1511.0 19193.3 541.1 556.5 0.6 31804.0 1323.1 2206.1 62.2 64.2 0.0 3655.62. trecteres 062.0 3242.4 8116.3 8376.1 8633.2 41432.0 926.7 947.4 932.9 963.0 992.3 4762.33. Iuplewntls 3953.1 4728.7 4162.6 4356.8 4545.4 2174'.0 454.4 543.5 478.5 500 . 522.5 2499.7

Sb letetl l2326.5 32164.4 12820.0 13293.4 13179.6 94983.0 2704.2 3697.1 14?3.6 1528.0 1514.8 10917.6

E. Naterlasi1. lapotad Nterlals 5553.3 13790.6 14200.9 1833.9 18042.9 67710.1 638.4 1586.0 1641.5 1343.6 20o3.9 7782.82. tocel Netonlels 03167.3 77327.3 23148.4 2409.3 282.5 198304.7 9559.5 1888.2 3235.4 276.9 319.3 222n9.9 '........ .................................... ................................................................ ...................................................................

Stb-jItal 88721.2 911215.9 42429.2 18443.2 20825.4 2615s44.8 10197.3 1044.2 4876.9 2119.9 2393.? 30062.6

LebowI. Unskileld l6er 11850.1 75SS4.4 13094.9 7"9.6 10197.3 67243.1 1362.2 20I7.1 2171.6 915.9 1262.0 7v29.72. Nsnagama t 1753.1 3051.3 I110.4 16.9 .r au614.9 202.1 3S0.3 203.5 1.9 2.0 760.3

................................................................... ...............................................................................................................................

lub-htotl 13608.9 20606.3 20665.3 795.s IO997.0 7363.0 156.2 2368.3 2373.3 91'.9 1264.0 v490.0

*. training1. Oversnes trninIg 334.2 r09.2 0.6 0.0 6.6 4493.4 435.0 81.5 0.e 0.0 0.0 s16.s2. Domestle Training 1059.l se882.2 2865.3 1692.4 1669.5 32706.5 1218.1 1825.5 329.3 I94.5 191.9 3739.43. leseatch 502.4 1100.5 191.1 120.9 42.3 1951.2 57.? 126.5 22.0 13.9 4.9 225.0 5

Stb lotsl 1483.7 17691.9 3056.4 1313.2 1711.8 39157.0 1710.3 2033.e5 35;.3 28 4 196.8 500.8 e 1rm x

N. lecInlcel AselstutI. lnterntlgst Cowltant 6.6 648.3 0.6 U.S 0.0 641.6 0.3 74.5 0.6 0.0 0.0 743.5 t2. Local Consu(tant 0.0 6.6 0.0 0.6 0.0 0.0 0.6 0.0 0.0 0.0 0.0 o oot

LA-totat 0.0 648.0 0.0 0.0 0.0 648.0 0.0 7.s 0.0 0.0 0.0 74.5

J. MwkIng Capital 26354.0 28954.1 114394.2 37863.5 40422.5 2478.4 3029.2 3328.1 13148.8 4352.1 4646.3 28504.4J. OthersI. eSal$" 13176.3 926.3 5112.5 50.? 585.1 25390.9 2009.2 106.5 57 6.9 67.3 2918.52. Suervlalon 4359.2 656.4 6390.3 2236.5 2478.4 3101.3 s01.1 741.0 3.6 2S7.l 284.9 9318.3. Freight S Insiuwme 1496.9 30S20.5 6.0 0.e 0.0 32017.4 172.1 3501.1 0.0 0.0 0.0 3680.24. Nsctell 21892.3 7265.3 4343.0 1797.3 2210.0 38008.2 2516.4 35.1 556.7 206.6 254.0 4368.8

S -lA tol 45921.2 104318.4 16346.3 4624.5 5273.4 176487.9 5278.8 11990.6 1878.9 531.6 606.1 20286.0

... ... ;............. ........ a................ ....... -s2-sw--w--tw.te--.-.......... ..................................................... **-*... -.............Total 5OJSCI COSTS 548961.4 72691.5 376210.4 94922.6 102007.7 11477.7 63099.0 8350.4 43242.6 10910.7 11725.0 212537.7

1/11/1994 14t14

CHINASONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

CHANGCHUN-JILIN PROVINCEProject Cost Suimwry

TuanOOD USSOO0 X Total----- -------------~~----~ --- ---------------------- ----- X Foreign Base

Local Foreign Total Local Foreign Total Exchange Costs

A Irrigation and Drainage 44432.8 18910.1 63342.9 5596.6 1684.2 7280.8 29.9 9.2B . SoilWater Conservation 23334.5 11321.9 34656.4 2891.6 1091.9 3983.5 32.7 5.0C . Field Crop Development 14662.0 32346.9 47008.9 1980.4 3422.9 5403.3 68.8 6.8D . Livestock Devetopment 96174.5 44706.6 140881.1 12206.7 3986.5 16193.2 31.7 20.5E Livestock Processing 67104.4 77839.6 144944.0 8572.2 8088.0 16660.2 53.7 21.1F Agro-procesisng 88782.1 162649.8 251431.9 11631.8 17268.4 28900.2 64.7 36.6G . Project Management 1611.7 3943.6 5555.3 227.5 411.1 638.5 71.0 0.8

Total BASELINE COSTS 336102.0 351718.5 687820.5 43106.8 35953.0 79059.8 45.5 100.0Physical Contingencies 12364.9 29514.6 41879.5 1421.3 3392.5 4813.7 70.5 6.1Price Contingencies 89643.3 23275.8 112919.1 5829.4 7149.8 12979.2 55.1 16.4

Total PROJECTS COSTS 438110.2 404508.9 842619.1 50357.5 46495.3 96852.8 48.0 122.5:====lt rs==.=en=:======:t: snuwr==r===-=s=:2= s======:==

1/7/1994 15:07

* X

Zun

CHINASONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

JILIN PROVINCEProject Cost Summary

TuanOOO usSooo I Total------------------------------ ------------------------------ X Foreign BaseLocal Foreign Total Local Foreign Total Exchange Costs

A Irrigation and Drairnge 12925.2 10660.4 23585.6 1735.3 975.7 2711.0 45.2 2.91 Field Crop Development 9999.7 59082.4 69082.1 1423.1 6517.4 7940.5 85.5 8.5C Orchard Development 28083.3 17009.2 45092.5 3487.7 - 1695.3 5183.1 37.7 5.6D Livestock Development 147162.3 80180.5 227342.8 18888.2 7243.1 26131.4 35.3 28.0E LIvestock Processing 42426.4 36362.6 78789.0 5452.6 3603.6 9056.2 46.2 9.7F Agro-processing 109747.5 243929.2 353676.7 14485.4 26167.1 40652.5 69.0 43.6G Project Management 3333.3 10535.0 13868.3 477.0 1117.1 1594.1 76.0 1.7

Total BASELINE COSTS 353677.8 457759.4 811437.1 45949.4 47319.2 93268.6 50.7 100.0Physical Contingencies 17925.9 40360.1 58286.0 2060.5 4639.1 6699.5 69.2 7.2Price Contingencies 99754.7 36509.4 136264.1 6169.3 9493.3 15662.5 60.6 16.8

total PROJECTS COSTS 471358.4 534628.9 1005987.3 54179.1 61451.6 115630.7 53.1 124.0

1/6/1994 18:12

I- WO x

- 97 -

Annex 2Table 5

CHINASOUGLIAO PLAIN AGRICJLTURAL DEVELOPMENT PROJECT

Procurement of Mochinery, Equipment and MateriaLs

Project Element ice LCB Other LIB NIF Total.............. ............................. ............... ................................. ,._.......... .............................

Lieoning Province (US S 000)................. ....................

Machirery/Equipment...................

Vehicles/Boats 5,300 so 650 6,000

Agric. Machinery & Equipment 905 1,792 2,697Irrigation Equipment 400 5962 9,257 15,619

Agro-Processing Equipment 17,332 2,000 500 19,832

Aquaculture Equipment 1,361 800 1,000 3,161Livestock Processing Equip. 95 1000 100 2,085Livestock Equipment 1,132 135.7 1,268

Office Equipment 69 70 769..................................................................

20.983 11,554 12,058 836 0 45,432Moterists

Construction Moterials 9,800 9,800Agro-Chemicals 7,800 2000 9,800Agricultural ir4uts 8,537 3.530 12,067Livestock Moterisls 7,820 75.44 7,895

Aquaculture Inputs 5,213 3,291 8,504

SubtotaL 17,600 13,750 14,641 2,075 0 48,067

TotaL Liaoning 43,883 25,305 26,749 2,911 650 99,499

JiLin Province..............

Machinery/Equipment........ ............... ....

Vehicles 2,100 1,400 200 3,700

Agric. Machinery A Equipment 6,512 1,617 0 8,129Irrigation Equipment 2,178 2,178 4,356Agro-Processing Equipment 30,825 8,000 5,415 0 44,240Livestock Equipment 3,122 3,122

Livestock Processing Equip. 1,616 1,500 3,227 U0.18 7,223

Office Equipment 385 452 837..................................................................

38,952 13,295 14,326 1,332 0 67,905meteriats

Construction Moterisls 8,070 1,700 9,770

Agro-chemicaLs 6,469 1,000 1,108 605.37 9,182

Livestock Inputs/Breeding stock 500 8,300 508 9,308

Agriculturel Inputs 4,000 7,500 11,S00...... .......... ___.........___._____..............................._.__........_____

SubtotaL 14,539 7,200 16,906 1,113 0 39,760._._..__..._.._.__.__._._..._.. ............... _.........._._._

Total Jilin Province 55,591 20,495 32,634 2,446 200 111,366

Total Project 99,475 45,800 59,383 5,357 050 210,864#8 g s # _ # _ _ - # B

- 98 -

Annex 2Table 6

SONGLIAO PLAUN AGRICULTURAL DEVELOPMENT PROJECT

Estimated Disbursement Schedule

…-----------------------------------------------------------------__---------

Disbursement DisbursementIDA ---------------------------------- Profile a/

Fiscal year/ Semestral Cumulative Cumulative -----------------Semester ---- (uS$ Mill-ion) --- I Yr/Semester I

1995 b/ Year 1First (Jul-Dec, 1994) 14 14 7 First 0Second (Jan-June, 1995) 16 30 15 Second 30

1996 Year 2First (Jul-Dec, 1995) 19 49 24 First 38Second (Jan-June, 1996) 23 72 35 Second 46

1997 Year 3First (Jul-Dec, 1996) 20 92 45 First 54Second (Jan-June, 1997) 21 113 55 Second 66

1998 Year 4First (Jul-Dec, 1997) 20 133 65 First 70Second (Jan-June, 1998) 21 154 75 Second 82

1999 Year SFirst (Jul-Dec, 1998) 14 168 82 First 86Second (Jan-June, 1999) 10 178 87 Second 94

2000 Year 6First (Jul-Dec, 99) 11 189 92 First 96Second (Jan-June, 2000) a 197 96 Second 98

2001 Year 7First (Jul-Dec, 2000) 8 205 100 First 100

------------------------------------------------------------------- __--------

a/ Disbursement profile for China - Agriculture Sector. The World BankOperations Policy Department, July 27, 1993.

b/ Included retroactive financing of US$ 14 million, to cover expenditureincurred between July 15, 1993 and not more than one year before thesigning of the Credit Agreement.

Completion date: December 31, 2000Closing date: December 31, 2001

- 99 _

Annex 3Table 1.1

CHNSONGLLkO PLAIN AGRICUrLTMEAL DEVELOPNT PROJECT

CROPPED AREAS, YELDS AND PRODUCTION

Table 1: JiN -Flw CtoPu

Crop Prelet Fut= without mroiee Futr wih oro;ic

AreYaeld Prod. Ara YiAd Prlod. A Yrid Prod.

('00 ha) (i/h) (00) ('00 ha) (i1h) ('0 ) ('O0O ha) (t/ha) ('00 t)

Corn 26.8 4.2 114.5 26A 4.6 [Z.9 21.5 5.1 109.9

Paddy 4.3 5.4 26.2 4.8 5.7 27.2 3.3 6.5 57.2

Whea 0.7 2.0 1.4 0.7 2.1 1.5 2.0 4.0 5.0

Soybean 1.6 1.3 2.1 1.6 1.5 2.4 1.6 1.6 2.6

Cabbge- - - - 2.0 70.0 140.0

Note: Populaion - 152,700; household- 41,000.Me project ars inchlde Songpo - 4,5000, Soangqi - 3,590 (irted rioc), Fuyu - 2,000 ha (irigted wbht),

Huajia - 10.200 ha, Wazhonggw - 13.640 ha (dnhiage imprvwnml).

- 100 -

Annex 3Table 1. 2

CHINASONGLL&O PLAIN AGRICULTURAL DEVELOPE:NT PROJECT

Table 2: Jrn.Z - AppEx-PEAR

Year Sovbean ADgle-PearArea Yield Production Area Yied Production(ha) (t1ha) (ton) (ha) (t'ha) (ton)

1 7,000 1.50 10,500 7,000 - -2 7,000 1.50 10,500 7,000 - -3 7,000 1.50 10,500 7,000 - -4 7.000 1.50 10.500 7.000 - -5 7,000 1.20 8,400 7,000 1.5 10,5006 7,000 0.72 5,040 7,000 3.0 21,0007 - - - 7,000 6.0 42,0008 - - - 7,000 9.0 63,0009 - - - 7,000 12.0 84,00010 - - - 7,000 13.5 94,500

11 - - - 7,000 13.5 94,50012 - - - 7,000 13.5 94,50013-20 - - - 7,000 13.5 94,500

Note: Populaion - 443,050; Household - 8,000Lishu County - 3,334 ha; Gongzhulng - 1,666 ha; and Shuangyang County - 2,000ha. At present, project area is wasteland, mostly low slope hills. Immature apple.pear interCropped with soybean for first six years.

-101 - Annex 3

Table 1.3

CHINA

,SONGLL4.O PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Table 3: LIONING - FIL Cxons

CMp _ PMent Fut without eroict Fute Wih victAm Yied Pro. Am Yaw Prod. Am Yiwld Prod.

C000 a) (t) (M00) ('000 ba) (hA) C000 e C0 ha) (/h) ('00t)

Comn (rainfid) 213 5.0 106.7 213 5.2 110.9 14.2 5.2 739

Rio, (iixu) * * - - - 6.2 6.3 42.2

Whe (=uriatz-d) - 21.3 4.0 35.3

Soyben (miWaed) - 7.1 1.1 S2i

Natc Number of houacholds: Rime - 47,337; Wheat - 213,016.

-102- Annex 3

Table 1.4

CEINASONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

LIor4NG - ORcHARD DELOPMENT

Future without moject /a Future with proiectArea Yield Production Area Yield Production(ha) (t/ha) 4on) (ha) (t/ha) (ton)

New planting - - - 3,000 22.5 67.500New planting

(high density) - - - 133 32.5 4,322Top grafting 7,017 15.0 140,340 7,017 20.0 140,340Improvement 1,240 7.5 9,300 1,240 10.5 13,020

Subtotal L2S 149.640 .11390 225,182

New planting - - - 333 18 5,994Improvement 1,000 7.5 7,500 1,000 15 15,000

Subtotal 1 0700 13 20994

AR ricots

New planting forfresh fruit - - - 200 15 3,000

Subtotal - - - - 3 0

Total Fits 2 157.140 12.923 249.176

Apnrcot Kernecls

New Planting - - - 2,650 0.4 1,060

Total Hcctarcs 15.S73

Note: Number of households - 135,114.

La Present situation same as future without project.

- 103 - Annex 3Table 1.5

CHINASONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

IAONING - SCHEDULE OF ORCHARD DEvEOPMEr(ha)

Year I Year 2 Year 3 Year 4 Year 5 Tota

A le New PlantingXingcheng 633 633 - - - 1,266Suizhong 400 300 - - 700Dataishan 133 67 67 - - 267Haicheng 350 150 - - - 500Nanshan -267 - - - - 267

Jinxian 133 - - - - 133

Subtotal l21i 9 1 SO

r -ngcheng 334 833 833 500 - 2,500Suizhong 1,283 800 - - - 2,083Dataishan 50 - - - - 50Haicheng 1,000 667 - - - 1,667Nanshan 33 - - - - 33

Chaoyang 684 - - - - 684

Subtotal Lam 2m0 £LU L.- 7

Apple ImprovementNanshan 1,240 - - - - 1,240

TotAl 6.S40 A 900 2 - 11l390

Pear New PlantnagBeizhen 333 - - - - 333

Pear Im2rovemelltBeizhen 1,000 - - - - 1,000

Total Pear 13 13

New Yinbai AgricotYixian 200 - - - - 200

Total Y.B. AD!icot 2m 2Q

New Dabian ApricotBeipiao 550 550 550 - - 1,650Lingyang 500 500 - - - 1,000

Total D.B. Anricot LMQQ L_ 2.Q

GRAND TOTAL 2 123 4 50 1

CHINA

SONGLIAo PLAIN AGRICLLTtAtAL DEVELOPNENT PROJECT

Agriculture and Horticulture Component.

Sumary of Crop Iuiget~~~~~~~,....... ........ ............... ......... .................. ..... ........ ... ... .. ........ .................. . ..........

Future----------. . PercentagePresent Without Project With Project

.................... .................... ...................... increasedNet Return Net Return Net ReturnPer He Per day Per No Per day Per No Per day Per No Per day~~~............ ........................ .................... ... ... ..... ...... ... .... ..........................

1. Wheat Irrigation Development Area 892.3 9.4 822.4 8.5 4,164.0 25.0 5092 29422. Rainfed Ptdyf to Irrigated Pm&t 1,724.0 9.7 1l948.0 9.8 3,912.0 19.6 201Z 20023. Ralnfed Corn to Irrigated Pad* 963.0 9.? 820.0 7.5 3,912.0 19.6 4772 261X3. Waterlogged area (Corn) 472.8 5.3 532.0 5.3 1,76S.0 16.0 3322 30214. waterlomged area (Soybean) 1t203.5 19.1 1,340.0 19.1 3, S9 0 4r.9 2682 2512S. Flex in Olan An 0.0 0.0 0.0 0.0 1,073.7 21.56. Whest Intercropped with Corn 1,430.5 10.6 1,589.0 11.8 4,643.0 22.1 2922 1871r. soybean In Wheat stubble 1,430.5 10.6 1,589.0 11.8 4,583.6 17.0 2882 1442B. From Corn to Apple new Planting 778.5 7.4 905.0 8.6 35,235.0 173.6 38932 201929. Top Grafting of Exilatng Orchards 10,066.0 50.4 12,086.0 60.4 18,986.0 94.9 1572 157210. Improvement of Exfiitng Apple Orchards 2,967.0 14.8 3,717.0 18.6 7,160.0 35.8 1932 192211. Frm Corn to Pear Orchards 719.0 6.8 845.0 8.0 12,683.0 63.4 15012 793212. Improveewnt of Exieting Peor Orchard. 943.5 4.7 1,356.0 6.8 3,663.0 18.3 270x 26n 13. Apricot New Plantine (fruit) 0.0 0.0 0.0 0.0 23,973.0 119.914. plcot New Planting (Kernel) 0.0 0.0 0.0 0.0 8,955.0 44.8.............................................................................................................

.................note: Detailed analyses can be foun.d In the Project Files.

(SX

CHINASOWGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

JILIN - field Crop Development

Rainfed Paddy and corn Into Irrlgted Paddy - tongqCrop 0udbet (per he)

Present Future Without future wlth Prolect

Paddt Corn Paddt Corn Paddy.............- -- --- -- ---------------------------- . ......... .....................................

tIMt Quin. Value Oun. Value oumn. Value Oun. Value oumn. Value(Yuan) (Yuan) (Yuan) (Yuan) (Yuan)

,................................................ ....... .............. ...... ........... .......... ...............................

A. Groes Value of Pro*xction

food Grain Kg 4455 3,385.8 4,455 1.871.1 4f950 3,762.0 4.950 2079.0 r7TM 5,652.0*y-Product , . . .

Gross Return Yuan 3,36S.8 16,71.1 3,762.0 2079.0 5,852.0

B. Cost of Farm ItWut,

Seed kg 45 99.0 36 95." so 110.0 40 104.0 s0 110.0fertili

2er

Aemmniuo licarbonrte kg 360 111.6 - - 400 124.0 - - roo 217.0SAP tg 135 96.2 90 130.5 150 213.0 100 145.0 150 218.0Ures kg 45 49.5 45 49.5 S0 55.0 S0 55.0 S0 55.0Amonium Nitrate kg - 225 157.5 - - 250 175.0 -Aumonilu tulphate kg *

.Potassium kg 45 49.5 45 49.5 50 55.0 so 55.0 Ts 83.0 rn S4 kg 9 6.3 6 4.5 10 7.0 7 5.0 10 7.0 IPotting soil kg 11 25.2 - - 13 23.0 * - 13 28.0r arue kg 26 157.5 Is 126.0 2s 175.0 20 140.0 25 175.0

Agrochemlcal Kg " 96.3 - 107.0 50.0 '107.0brought Animl An./day S 01.0 14 135.0 9 90.0 1s 150.0 10 90.0Wachinery Yuan 189.0 162.0 0 210.0 0 180.0 0 210.0Water/Elect. Charles Yuan 290.0 -2. -20- - m.0Others Yuan 310.5 0.0 345.0 200.0 345.0

tota 1,6t1. 908.1 1,114.0 1259.0 1,940.0

C. net eturn Yuan 1,724.2 963.0 1,948.0 820.0 3,912.0 cr

Famly Labor Pereonday 17T 99 196 110 200 Return to Fmily Labor Yuan 9.7 9.7 9.8 r.5 19.6

9/15/93

CHINASONGtIAo PLAIN AGRICULTURAL DEVELOPENT PIROJECT

JILIN - Fild Crop Developm nt

Rainfed Uheat and Cabbage In Uheat Irrigation sevnlopinet AreaCrop Budget (per he)

.................................................... ............................................................................................................. ...............................................

future with ProlectPresent future without Project ---.---------------- ------------

Irrigated Wheat Ctbbage total............................................................................................................

Unit Quantitr unit Value Ouantity Unit Value Suantity Unit Value Quantity tinit valuePrice (Yuan) Price (Yuan) Price (Yuan) Price (Yuan)

.................................................. ................................................................................................................................................................. ...... ......

A. Oross VYlue of Production

Yield Ton 2 900 1800.0 2.5 900 2Z50 5 140 3700.0 65 60 3900.0IyProdmet ton 1.5 34 51.6 1.6 314 54.4 5 20 100.6 0 0 0.0

Gross Return Yuen 1851.0 2304.4 3800.0 3900.0 7700.0

8. Coat of Form IrVuto

Seed kg 100 2 200.0 100 2 200.6 200 2 400.0 1 60 60.0 460.0Fertitlier 0.0Ure Ig 150 0.53 79.5 200 1.04 208.6 300 1.04 312.0 200 1 200.0 512.0DAP kg 140 1.43 200.2 150 1.46 219.6 200 1.46 292.0 150 1.46 219.0 511.0Potaselum sulphate ig 10 0.9 9.0 50 1.5 75.6 50 1.56 78.0 0 0 0.0 78.0 0HNr~e ton 7 20 140.0 20 20 400.6 25 20 500.0 1S 20 300.0 900.0 o

Agrochemical Yuan 100.0 40.0 25 15 375.0 20 15 300.0 675.0Brought Animal An.iday 10 13 130.0 1S 20 300.0 15 20 300.0 2 20 40.0 340.0Nschinery 1u n 100.6 40.0 1 40 40.0 100.0 140.0

0.0Total 958.7 1482.6 229Y.0 1219.0 3516.0

C. Net Return Yuan 892.3 822.4 1503.0 2681.0 4114.0

famlly Labor Peronday 9 97Return te Ftmily Leobo Yuan 9.4 8.5 110 13.7 225 11.9 25 o

.....................................................................................................................................................

9/1S/9I n Li

CHINASONGLIAo PLAIN AGRIOULIUNAL DEVELOPMENT PROJECT

Lisoning Agrlculture Ctpporwnt

Crop Budget - Corn. Pedct and Wheat Intereropped Corm/Soybe n

. ............................................................. ............................................................................................................................... ............................... ....................

Future ulth Prolect...................... ........................................... ;........................................

Present Future without Wheat Intercropped with Corn Wheat sttbble toybeen

Corn Corn Peddy Uhet Corn Wheat Soybean.............................. .......... .............................. sib-lo.. .. t............. sth-TotalOutn. Vslue Ouwn. Value ouan. Value Otun. Value Ouan. Velue Value Oun. Value Quan. Value Value

.............................................................................................................................................................

A. Oross income............

Prouict ton 4.T 2*409.0 5.3 2,6o7.5 6.8 4,860.0 4.5 3,600.0 6.0 3,060.0 6o660.0 5.3 4,200.0 1.9 3,000.0 7T200.0*y-pro&ckt ton 6.5 173.7 7.4 198.5 7.4 267.3 5.4 102.6 3.4 226.0 329.4 6.3 119.7 1.9 103.1 222.8

"th-total 2.588.5 2,86.0 5,127.3 3*702.6 3.286.8 A.989.4 4.319.T 31103.1 7,422.8

3. irqat'

Seed (kg) kg 40.5 137.7 45.0 153.0 90.6 180.6 210.0 336.0 31.5 107.1 443.1 300.0 480.0 84.0 193.0 6l.3.OManure ton 13.5 135.0 15.0 150.0 15.0 150.O 14.W 147.0 10.5 105.6 252.0 21.0 210.0 7.5 75.0 285.0Fertliter-Uree kg 202.5 243.0 225.0 270.0 300.0 360.0 173.3 207.9 157.5 189.0 396.9 247.5 297.0 90.0 108.0 405.0*Dt tkg 148.5 223.2 165.0 248.0 195.0 293.0 136.5 204.8 11S.5 173.3 378.1 15.0 293.0 `13S.0 202.0 49S.0-Potamelue Sulphate kg 40.5 38.7 45.0 43.0 49.5 47.0 34.6 32.9 31.5 29.9 62.3 49.5 47.0 45.0 43.0 90.0AgrocheelcalC kg 6.1 5.4 15.0 6.0 3.0 120.0 1.1 42.0 0.1 4.0 46.0 1.5 60.0 0.9 36.0 96.0Plastic Film 22.5 79.0Materials pole 600.0 1S.6Dre.t Animal day 1.9 245.T 21.0 273.0 12.0 156.0 4.2 54.6 4.T 191.1 24S.7 6.0 78.0 9.0 117.0 195.0Machinery aet 0.3 64.8 0.9 fl.0 2.4 192.0 0.8 64.0 0.6 50.4 114.4 1.2 96.0 0.9 n.o 1I8.oPowerlwater Chars" l uan 502.5 322.5 0.6 0.0 322.5 0.0 322.5 6.O 322.5Tax Tuan 64.5 0.0 n.o 145.5 34.5 50.4 84.9 34.7 T5.0 109.7

total Costs 1,151.0 1,28T.0 2.240.0 1.446.2 900.2 2,346.4 1.918.2 921.0 2,839.2

met volu of Productlon 1,430.5 1.589.0 2 887.3 2,256.4 2,386.6 4,643.0 4,513.6

Fumily labor 135 135 180 r5 135 210 75 135 2ro

ltunper Paronday 10.. 11.8 16.022 I.Return pe erredr"^"J' 22.1 17.0 l

m x.................................................. ................................-.- --------.......... ,,,,,,,,,,,,,,,,,,,,,, .................... X

9%15%93

I~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~~~L

- 108 -

Annex 3Table 2.4

L_wbw - rb -_cw _1 c 1

gm ptuj1gw */ tp utftt Wh j / Mm pt uei . w t. IO/ AP kW P.... * t Ptwew t

3dt Plm t_ _3m -_ W _____ "we I Vl 1 O _lm _ m tw

A. P1omW 3.Am" 1on"m pup - .

-Twid bei,755. 10,11111.2 415J ,13.

4y-w SmA Vatin .W e. .. 9Te1 at n in um. 6153.8 i.i.02,3

3. ,_

11sub km LI 27.5 9.3 "A .5 "13.up" ~~kW 1.2 UO.9 30.a .. 1.135 .0 11.31 .96 13.8 3.08 2310 53.

z ~ ~ ~ k 1.5 5.0 o 3. 27s. _2. 413.8 33. -38

-- 'in MA 12.8 5. ". gm. U.8 311.1 3i 30 S"i w - 91mg 1.111120 11 31. n&w~mte b 3. 1.J 13.3 MA tt1.11 7J 35J 1.8 13.9 T3.

Karim4 5.4 11301 5.8 4a". 0.

bat 6min 1.MS.8 7,914.8 2.33.0 1,13M.8 2,13.0

0"_~~~~~~~~~~~~~~~~~~~Tr. S.MsJ I'M

-ot v 13 11 J lvisi j _ J.8 MA *63.3'ml1 tLa MA .e 33. 11.8 3MM8'M unity Le 74 "A3 .8 6.8 1.7

tiOld km 5.33.0~k 30,03.8 73.90A $,omoi a,0.

1 t,J r,n J~~~~~~~~~~~~~. 3.8t .Z b

TotaIlm" latin rum150. 3,1. ,.0 2 ,1.8 4,180.8

IF"t* cm"weim be _ A 37J 4. 2. W.3Wom kg 1.2 50. me. 1.tn. I.2.1 13 1.J M" 20.0 aJ

-w, 33 3.0 12.3 IAe "A. 33. 5.8 3111.0 3.8 au". M".btUw ISISW I"= 5.53. 113.0 UFA8

vromomisis t "A. 1.8 13. 3S" 1,us. 7.5 275J 1.8 "A. 13.8lml.q 5.J 453.9 5,J A53J 9.9

'mows _3. 1.31. .

33.8 2.33.8 33~~~~~I ".9 13.9

lot win 133 33.9 r.3AJ S77.0 81M.8 1734.0

0tv 9w S 317JL 9 n.6 1,4." 3.9 110.1 -

- ie l is i9 em Ptine ~ t. 1.otlau De mwJ a a * 9we @ mJ me'--i #ia ret AN.e Mm Jtno Aps To Nutm 0*Po w o".i Al" toro

old kV 5.32,30 3,1. ,3.80".301 3. 1.

p t loin TAm 453.8 24.338 35301,3005. 33.oPut wai m 0. 0.0 0.0 0.0 t .3stat Yati. ~~~~~~~~ ~~45,3.0 M .0 31,111,1100.0 S..0 3 1.861 3.3.0 123.8"

Iran l aiS

kg6'kV 1.2 "tn's '-no. I0 I-=-. M. 440. 1 47.0 goJ psi 5a. 61. 111j 43.8km 1.5 2710 mu2. 275. miL 315. 142. 215.8 MA42.0 375.14. 15.8 413.0 no0. 215.

wu ti~~~~~~n 3.8 40.8 M3. 41. MA. 30.3 400.8 NJ 643. 30.3 4131 2.8a 4013.9 14. Xf.3w 0.0113 ~~~TiM tIu.o 1,33. 351.3 4130.0 230.3 413.0

Ino kV 13.0 .8 1.33.0 3.I 1.33.8 7.5 271. 3.8 1.33. Ui. lo.3 50 11.3 111.0 513.wilnI Owslm 33.0~~~~~~~~~M 1111.8 33.0 311.31 33. 3111.0 33.0

4,750. 6.330A 2,813.8 1.310.8 1,1.3n 2.3.mi 1,23j.

real baa ~~~~~~~ ~ ~~~~9,74.5 11,916. 5343.8A 5,87. 4,3.8 &6.S. S.M2.0

win tim 3~~~~~ ~ ~~~~~.M3.$ 193.IU 714C.0 3,4028 2,445.8 5,97.8 #.MJ.I tyr t-.39. _.8 3. mu.N oa.0

oS tonIl4y Lmo 112.6 11.9 23.8 41.4 185119.9 404.8

31 -u >- laS ta 330901i

.~ g,stl. m .tlm in t pli etrl _t 1u ._ m _-t

tmppwmmisti _w vd. .. .... -

Canwt mm Wn I am pwr pn,a n.a .

Pbma3 of mam tamuL

CHINA

SONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Agriculture and Wortleulture Caiopnents

Summary of Farm Models. ..............................................................................................................................

Future----------- ------ --------- ---------------- Incremental

Present Ulthout Project Ulth Project.................... ~ ........... ................ ----------- ncome

Net Return Net Return Net Return (Yuan)Per Capits Per day Per Capita Per day Per Capita Per day Per Capita Per day

1. Songql Irrligted PFe"d Area 260.0 4.6 311.0 5.5 m.0 13.6 68.00 1.12. Sangpo Irrigated PFe" Area 460.0 7.4 553.0 3.7 99. 0 13.0 346.0 4.33. Apple-Pear Area 1669.0 22.6 1,669.0 22.6 6 504.0 72.5 4835.0 49.94. Fuyu - Irrigated Wheat Area 455.0 17.0 455.0 17.3 931.0 36.5 476.0 13.?5. Other Irrigated Area 300.0 11.7 300.0 11.7 356.0 14.0 56.0 2.36. Nong An Waterlogged Area 170.0 3.0 216.5 3.8 643.3 10.3 431.8 7.0T. Xiaoshi Nicro Watershed Area 594.2 19.2 64S.2 20.3 3,721.1 66.0 3075.9 45.2S. Reclaimed Wasteland for Padd? 284.3 10.1 340.5 12.1 475.4 30.1 134.9 13.09. New Orchards 311.3 5.4 739.9 12.1 1,097.0 17.3 357.1 5 .10. Orchard ioproeem nt 311.3 5.4 311.3 5.4 746.8 12.2 435.0 6.3

Notes Detelled *ulyses can be fourd In the Project Files. I

F3

CHINASONGLlAO PLAIN AGRICtULTtAL DEVEtOP"ENI PROJECt

JILIN - Fleld Crop Development

lainfed Peddy and Corn Into Irrlgated Peddy - SongqlFars Model

................................. ................................................................... ..............................

Present Future without Future with the Project....................... .................................... ..................... ....................................

Peddy corn Total Ptddy corn Total Paddy Corn Total..............................................................................................

Area (ha) 0.30 630O 1.00 0.30 0.70 1.00 1.00 0.00 1.00

Food Craln 1016 1310 2326 1129 1455 2584 5852 0 5852Anlml Rellng - 25 - - 30S - 305

Gret Return 2621 2889 61STOperstlng Costs

leeds 33 73 106 33 73 106 1I1 0 116fertiliterA ni llcearbonatt 37 0 37 37 0 37 21T 0 217DAP 55 95 150 65 102 167 218 0 210Urea 17 39 56 1? 39 56 55 0 55Ammonium Nitrate - 120 120 0 123 123 0 0 0Aenhiue sulphate - 0 0 - a aPotaslum Suulphate 1? 39 56 IT 39 56 63 0 83iZne b ulphete 2 5 7 2 5 7 7 0 7 0Petting soll I 0 0 * * a 28 0 25fhmure Se53 151 53 9 1S1 1S 0 1rsAgretkoical 32 0 32 32 35 67 107 0 10TDrought Animl_ 27 105 132 27 105 132 90 0 90Yechin ry 63 126 189 63 126 189 210 0 210VaterlElbt. Chaeres ST 0 B7 of - 6r 290 0 290Other 104 140 244 104 140 244 345 0 345feed 130 0 0 140 140 0 140tax 27 49 76 2r 49 76 90 0 90

total 562 889 1S81 572 34 1646 2165C. Not Return 1040 1243 3992ftlly labor 228 226 294Return to faumly Lobor 4.6 5.5 13.6Per Capita Ineom 260 311 990..............................................................................................

wwNotet Average household has 4 persons with 2-3 laborers.Average cultivated lend In Songql Is 1.0 he (1S MU).

CNINASONGLIAO PLAIN AGRCtILTIMAL DEVEOPMENT PROJECT

JILIN - orchard Development

Apple pear Are.Form Model

.........................................................................................................................

Present Future without the Project Future wlth the Project,.................. &.........................................................

Corn Pig Orchard totel Corn Pig orcherd Total Corn Pil orchard Total................................................. ........................................................................................... .. ..................................

Area (hb) 1.00 1 1.30 1.00 1 1.30 1.00 0 1.50

Crop Inmaem 2,700 0 12,460 15,180 2,0oo 0 12.480 15,180 2700 0 32,400 35,100

Br Prodckct Income 576 0 7s6 576 0 76 - 0 0 576

Groes Return 15,756 15.756 35,676

Operating Coats

Seeds 100 0 3 100 100 0 0 100 100 a 0 100

Fertililer 425 o 1,443 1,868 425 0 1,443 1.861 425 0 1,500 1,925

Nsnure ZOO 0 260 460 200 0 260 460 200 0 280 400

Agrochemicul 92 0 312 404 92 0 312 404 92 0 320 412

Iichineryl Anl _l 260 o o 260 260 0 0 260 260 0 0 260

WateriElect. Chargs 42 O U 42 42 0 0 42 42 0 696 740

Other 0 0 0 0 0 0 0 0 O0 0 0feed 350 0 350 3SO 0 350 0 0 0Piglet 100 0 100 100 0 100 0 0 0tax 120 o 1,246 1,368 120 0 1,248 1.368 120 0 3,240 3.360

Labor 0 2,806 2,806 0 2,808 2,806 0 2,061 2,061

Other 20 1,300 1,320 20 1,300 1.320 o 324 324

Total 1,239 470 7,371 9,080 1,239 470 7,371 9,060 1,239 0 ,423 9,662

C. Net Return 6,676 6,676 26,014

F ilty Labor 130 1S IO 29 130 Is 1 IS 2l5 130 S 229 359 0

Return to fm-lty Labor 22.6 Z2.SPer Capita Income 1,669 ,669 6,504 , x

Notes Averege household hoe 4 person with 3-4 laborers of uuhlch one Is a women.Avereae cultivated land 1o on ha for corn and 1.3 ha for fruit.One fruit tree prodtees 10 kg frult, selling prlce Is T 1.6/ko.Asmuing productlon at the ten yrer then the orchard Is In stable prodkiction period.

CNINA

SONGLIAO PLAIN AGCICULTlUAL DEVELOPhIIENT PROJECT

Llvestock Processing Copornent

Anual Pro6xtlon

..............................................................................................

County Caeclty Meet Offal Sone Other Skin/Feather..............................................................................................

Von/YearLl aning Slaughterhotues.........................

Chantu -Cattle 30,000 head/year 6.241 1.170 1.914 235 30.000 plecesChmngtu -Rabbit 850.000 heed/year- 1.256 18S 131 542 850.000 pieceeZhawu -Ceese 400.000 head/year 2,365 U3 0 165 184 kg

Jilin Slaughterhouses......................

talpirn -Sheep 500.000 head/year 7.350 2.000 2.000 1.500 500.000 piecesDe Nul -Cattle 50.000 head/year 10,000 2.400 1.800 0 50.000 piecerSh.m lleo -Cattle 50.000 head/year 9*000 3.000 1.800 1.37S 50.000 pleces aong An -Geeee 1.1 oillon heed/yr 6. 500 230 0 4SO 500 kg

I I I

........................................ ........................................................................ _

I-' mm x

- 113 -

Annex 3Table 5.1

CNINA

SOMCLIAO PLAIN ACAUJLTURAL DEVELOPMENT PROJECT

Livestock Processing Comonnt

Major Pr.d ct Ex-Factory Prices

... ... ___....... __....___....... . ........................ ........

Ex-factory SellingCompont P. t Prices (Yuanton)

Jilin Provinsc..............

Dehul Cattle Slaughterhouse (a) -Beef ist grade (eport) 11,400- Bf 2M grade (local) 7,500- Offal 3,000- Midas (each) 130

- Sonoo zsShuanLiao Slaughterhouse BSe I grade 9,20C

- Bef 2W grade (Loal) 7500- Offal 2,77- Hides (each) 130-Bones 250

Tat Ping Sheep Slaughterhouee (a) - Mutton I st grade 9,000mutton 2 nd qrade 4,000

* Offal 35o00Skim Ceach) 20

-Bones 560

ong An Gees SLaughterhoue (Ca) Carcass 4, 000- Offal 4.000 to 10,000

Lioaning Province -Feathers 30,000

Zhnguwu Gese Slaughterhouse - Mt 3.500- Foot, Wing, Gizzard 10,000-ffatl 4;000 to 7o600- Feathers 200- Feather Coat 145.000- oA 50,000 to 2S0,000

Changtu Rabbit Slaughterhouse (a) - Carcases 12,000S mked rebit 3,300

- Offatl 2,00- Skim (each) 2

Shuang Yang Door Products CO) - Medicinre 53,000 to 750,000

Note:lo) Iti that wold be of export quality.

- 114 -

Annex 3Table 5.2

AvZ1o-Idustrie ampoont

Major Prand t WantmZy«r Fries

;rt49 ~ ~ ~ ~ ~ ~ pudu ftn m

- Linba Alm Mal iat.llary (a) - Anhydous -c , 3,000

- coiz au 3,100

- Ci emow 750

- Try distIl2ars 0 gm- maagywg *PapftM= (a) - nluag papor Z0c0- JiUtl !as my la) - L ati (Tua/m2) 14 to 140

- An OGlatia plan: la) - alatia 12.000 to 50,000

- Posphate 1,600

- Dan all o 1,600

- qL.c An Flax mill (a) - L1" (Tan/M2) is to 23

- Plax Tars 27,000

- Flax t 1,200

- Tueau Cars st6azch Mll - Nodifis starch 2,250 to 25,000

- gm An p*tor Mil () - Patbar Dw (Taa/kg) 110- fy lat_e (Tuaa/) 6

(a) - Dr oants (Yuha a _) ISO

( o) - 3m treu ars (T eacb) 00

(a) - Dma qilts (Tm eab) 250

Laon Pmre

- XinaMao Peanut Pratain Plan (a) - Feint prtalm Isolates 23,000

- Peaut aenstm 11.000

- FernSt e.1 6,000- Liacyang Pc-tata plant - latese myae "0,000

- xa±uan Davtma Devr_ap - Jule entrate 15,000

(a) - eatar balttld 4,600

(a) - Ncatar Gaenn 6,000

- a. g Apple nuim (a) - JUlsr m ta p t) 6,700

- Ju_e cncntrae (local) 6,000

_ Dame 6,000

- 2±5mg irid inbroes (a) - Dry IOmeAgu 5,000 to 3,000-apia Purera Pl-at - rf l 4,000

- SA Dapam, pqpell () - Plutag paper 2,050Laebig sames ail ULl Q; e i 12,000

_ Sem cakeZ S00

(a) Itm that sed be of *rpest quality.

- 115 -

Annex 3Table 5.3

aDzao n UACZUML DZVrMMT

I tWZn=ri __powit

zaps" and UPzaduta

Component am ft.ftm UU.i4a.d t/zodianxd ctsn~ tm/yea

3±135 Ir ri

- LIa - C= 135,000 - A 30,000

-Dry cc= 31.500

- o,-PEut 14,000

- mamu, - Ri.tzw 324,000 - rlutIn p 17,000

- Jiatal - skim amm 31. 21,000 - Leathr L3,00e

- De An - Dag. s,7so - OjLea 750

- 3y-pzndut 2,010

- QUaM An - PRI 1,750 - L4m. pzadna 2,250

-yam 330

- 2w 1,750

- - CD= tALzuh 14,500 -Modifid 3t*Zuh 10,000

Liaming FmDVImi

- 0 m - AP41 131,50 -Ap1e b4 ag 7,500

- T An - Dehan 1,l000 - Flutin p_w 23,000

- Riu et 33,000

-aing -Cc= _b 12,000 - Frtum1 1,000

- &17 -NEWtham ralt 5,700 - SeIceram Jaw 10,600

= Zif - 1oabmm 2,300 - Ot r _ 1,700

= XInuha.g - peam_ta 15,000 - Psalm Pzutaiin 3,060

- P_M=t Ol. 3,520

_AM. land 10,500

- LL|y-M - .Nd1 frut 3,300 - aact--may 425

- langobea - esain on" 5,000 - SUIOS all 2.345

- 3yvdmt 22.16

- Jimian - Ippl-/'am a 1,500 - ft t Ctal2dt 1,500

Dta 4S ball veib-mlo

D aCbU aum- appim/Fearm 4500 - Frit CoJal"m4,500

VeIStAbims

CHINA

SONGLIAO PLAIN AGNICULUIRE DEVELOPMENT PROJECT

Agra-industries and Livestock Processlng

Product nd Form Prod4e Water Coal Power PermanentINMVSTMENT CtPoWtN T capecity Produce UtII s*d conauned Censumed Constued Employees............. ........................... ............................... .................................................................

Jilin Province Agro-lndustries ----- Tons/Tear '000 - --. Uh/yr...............................

-1lshu Arhydrout Alcohol Plant 30.000 t/y anhydrous alcohol Malie 135.0 1U4.6 6.U8 23.6 532-Shuwnqywn licestrow Papermill 17t000 t/y fluting p per lice straw 34.0 1.265.0 5. 12.8 450-Jlutal T.nery 1.300.000 skins wd hides/y Hideslskins 26.0 750.0 17.2 7.? 606-Dloen Gelatin Plant 750 ty gelatin Mixed bome e 6.8 915.0 8.5 2.2 241*Iianan Flax Nill 5.000 Spindles expwnslon Flex 12.5 1.265.0 19.0 19.6 1641-Tushu Modified Starch Plant 10.000 t/y modified storch Starch 14.5 100.0 4.2 1.5 195

Jilin Province Livestock Proceselng...................................

-Tel Ping sheep sIaughter 500,000 sheep per year Sheep 20.0 1,250.0 1.2 3.0 350-Do Kul cattle laughter 50.000 cattle per year Cattle 20.0 305.0 2.0 4.1 250-Shuan LIo, cattle slaughter 50.000 cattle per yeor Cattle 20.0 576.0 1.2 3.6 300-Shug Yang deer prodwts Assorted phrodleece Dried Seer 1.6 31.5 0.4 1.5 448 1-Nongon goose slaughter 1.100,000 geese per year Geose 3.6 1.0 0.1 1.0 33 F-*Nng'on utgooe feather factory 246 t/y feather processing Feathers 0.0 30.6 0.3 0.1 48 H-*Nnaron garment fatory 3SO.000 gorments per year Deun 0.1 5.3 0.3 0. 815c

, ............. ..... ..................... ............... ......... ............... ......... ,

S-h total 294.0 8.218.4 126.9 81.4 5.911Liaoning Province Agro-InduAtrles

-hoicheng apleJuICe Oe vrages 7500 t/y Apples 33.5 2,400.0 2.0 3.8 125-Talon Degbane Papermill Fluting peper 23000 t/y Dogbne 16.8 5.380.0 20.0 3.8 400ricestraw 33.0Kanqping Furfurel Plant Furfurel 1,000 t/Y Corn cobs 12.0 12.0 1.0 0.6 130-Kelaui n Nowthorn Proceesing 5everaget 8 500t/y Howthorn 5.7 320.0 5.0 1.4 448-Xifeng Wild Nerbs Drld herbs 1500 t/y iushroom 2.3 12.0 0.8 0.0 200-Kincheng penut processlin Proteln/oil 22,706 t/y Peanuts 15.0 294.0 15.0 7.0 400-Lleoywn Pectase plant Pectase 425 t/y Howthorn 3.3 1.392.0 5.0 13.9 258 r m-Longchens Ses o l Sesoi oll 2385 t/y Seoam seeds 5.0 18.0 3.6 1.1 100 F X-Jinxl Detaishan cold store 1.500 1 frult cold store fruit 1.5 6.2 0.0 0.6 25 Ln w-hoicheng Sattn cold store 1.000 I fruit/voS cold store fruit/ve 4CS 6.0 0.1 0.4 20

Lisoning Province Livestock Processing

.Che.ngtu cattle slaughter 30000 cottle per year Cattle 12.0 90.0 0.8 1.2 200-Chontu rabbit slaughter 8S0000 rabbits per year Rabbits 0.9 15.0 0.0 0.2 20

Geese 1.6-Zhangi goose slaughter/feather 400000 geese per year Geese 1.3 5.0 0.1 0.3 193

SUb-total 148.4 9,950.2 53.5 34.2 2,519

Totel 442.4 18.168.6 180.4 115.6 8,429.3..................... ..........................................................................................................

- 117 -

Annex 3Table 6.1

CHINA

SONrLIAD PLAIN AGRICULTUIRAL DEVELOPHET PROJECT

Livestock and AqmcLuttur, Cocponrnt

Surmry of Financial Rate of Return

Not Anual Not Present Finrncial Rate

Cah Income Value of Rcturn.___......__.....................,_._..___...._..__._________._________

I. Livestock Cacponmnt

Jilin Provinrce Yun __________...

Hosehold Cattil Fattening 5,373 3,594 35.1

Cattle Feedlot 14,120 15,547 21.0

Pig Fattening 3,432 2,344 16.2

Deer Stud farm 2,203 2,512 18.3

Grassland Development 47.000 31,396 17.J

Liaoning Province

HoNmehold Cattle Fattening 2,754 9.195 40.5

Household Cattie Sreeding 2,30 5,691 23.3Doer Production 3,546 21,679 23.6

Goose Fattening 249 943 32.0

Goose Sreeding & Fattening 440 750 31.0

21. Aquscutture Caupnennt

Shrirp 4,699 12,M 21.0

Scallop 13,995 76,573 38.7

Hard CLom 1.400 2,996 23.2

Short heck Cm as55 2,447 26.6

River Crab 551 1,651 22.0

_________________....................................... ____________________ ..................................................... ..

CHINA

SONGLIA0 PLAIN AGICULTtURAL DEVELOPMENT PROJECT

Agro-Industrles nd Livestock Processlng Cotqpennto

Revenue Flnanclel Rates of Return end smnItivity Analysis....................................................... ................... ......................................... ............... ..........................

Finamncil Rate of Return

Total Gross Gross Rase Case 90S 80XINVESTMENT CUPO"f NY lase Cost Revenue Income X Capacity......... ....................................................... .......................................................................

(Yuan Million)Jilln Province A.ro-Industrles.................................

-Elshu Anhydrous Aicohol Plant 148. 90 142.7r0 40.826 19.1 17.0 15.0Shuangyang Ricestraw Paeprmill 43.604 36.143 15.50? 22.8 20.0 1T.0-Jiutel Tannery 107.543 115.353 29.299 17.6 16.0 13.0-Deaen geletin Plant 43.625 2S.443 13.366 19.8 17.0 15.0-Olin'an flax Nill n7.049 59.228 25.612 21.5 19.0 16.0-Yushu Modified Starch Plant 44. 199 41.760 11.460 15.5 14.0 12.0

........... ............... ......... ......... .....

44.910 420.677 136.072Jilin Provinco Livestock Processing...................................

-lat Ping eshep slaughter 3T.159 t.370 10.138 18.1 16.0 13.0 1-De Hui cattle slaughter 60.471 118.00 24.TZ8 27.3 2S.0 22.0-Shumng Liao cattle slaughter 28.805 94.702 9.041 19.8 18.0 16.0 F-Shuwn Tan deer products 32.130' 32.8r5 11.311 23.8 22.0 20.0-Nongan goose slaughter 7.615 16.654 3.r29 15.5 14.0 12.0-Xoangn goose feather factory 6.355 12.700 2.579 27.7 25.0 23.0-Nongan grment factory 11.532 37.500 3.718 20.3 17.0 15.0

........... ............... ......... ...............

184.067 389.871 65.244tisoning Province Agro-inikatries.................................

-Heicheng appleJulce 32.2 53.1180 8.520 16.1 15.0 14.0-Talen Dogg'ne Peperutll 57.0 47. 150 17.742 20.0 18.0 15M0-Kangping Furfurel Pilnt 6.4 4.000 1.859 18.1 15.0 12.0-KaIyuan hawthorn Proceesins 41.2 64. 760 17.354 28.T 26.0 23.0-Xifeng Wild Nerbs 8.6 3.838 2.739 20.3 19.0 18.0-Xlnchen pewnut procc cing 6.5 8e.600 28.493 26.0 24.0 21.0-l enig Pecafte prant 25.9 25.500 7.913 18.6 16.0 14.0-Lonyaheng Sesaw olt 16.3 31.511 4.732 19.9 18.0 17.0-Jinx, Dataishan cold store 10.5 8.129 2.919 21.7 19.0 16.0-halcheng Datun cold store 7.0 6.200 2.112 22.6 20.0 17.0

... ...... ..... .............. ..........

271.6 337.568 94.383lamning Province Livestock Processing

tChangtu cattle slaughter 26.7 66.290 13.042 29.9 27.0 25.0-Chontu rabbit slaughter 8.9 12.763 2.581 19.6 16.0 12.0-zhang.u goose abottoir 10.7 14.304 5.598 22.1 20.0 18.0

........... ............... ......... ......... .....

46.3 93.357 21.221

Total 966.9 1,241.5 316.9…......................................................................................................

119 - A=ax 3

Table 7

CHINA

SwIuIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Rent erd Cost Recowry

.__...__.._,,,_...... __....__.._..... ... . . . ... . .... . . . .. .. ... . .. . . . . . . .

Crops Orchard Livestock Total(317,000) (1U3,000) (58,000) (518,000)

._,,,...... ,,,,_,__,,.._.____.. .. . . .. . . . . . . . .. . . .. . .. . .. . . . . . . . . . . . . . . .

At Full Delo#pmntIncremental Inco_ a/ 234,808 393,339 158,979 757,126

Less:ImPited VaLue, F_mly Labor b/ 26,972 18,058 13,969 56,999lipted Value, Management Services c/ 23,681 39,334 15,898 78,713lIputed Return to Om Capital d/ 11,740 19,667 7,949 39,356Allowace for RiskAincertainty cl 23,481 39,334 15,896 73,713

Subtotal 85,674 116,393 53,714 255,781

Eq - lProJect Rent 149,134 276,946 105,265 531,345

Project ChargesWater Charges e/ 25,649 13,767 a 39,416Taxes f/ 11,740 39,334 9,539 60,613

Ttotl Charges 37,389 53,101 9,539 100,029

Total Rent Recovry Index tX) g/ 25.07X 19.17X 9.06X 18.831

During Project's Life h/Project Rent 737,272 917,654 327,366 1,932,290

Project ChargesTaxes t/ 1OS,660 89,486 0 195,166Water Charges 336,501 255,671 143,085 735,257Interest NW Loam Repnmnt I 14,U11 24,366 49,056 87,610Total Charges 456,349 369,523 192,141 1,018,013

tent Recovery Index CX) u/ 61.90X 40.27Z 58.69X 51.36Z

Project Costs J/ 347,516 251,966 466,779 1,066,261

Coat recovery Index (t) k/ 131.3ZX 146.66X 4t1.16 95.481_____ __................................___.._......... .... ......... .. ... ....

a/ Based en the Incrmental Incom of form fiLies in the fars madel anlysis beforededcting project charges ard debt service.

b/ Based on IncrementaL laor vailud at 801 of the mrket wage.c/ Ten Percent of increm_ntal incins.d/ Five Percent of incremental incin.e/ Based on water charges of for wht and rice of Y337.S nd Y247.5/ha for gravity irrigation,

Y615 and Y420/ha for pump irrigation and Y540 and Y285/ha for tlbeLl irrigation.f/ Five percent for crops, 101 for orchard and six percent for livestock.9/ Project charges as a percentage of project rent.h/ Expressed as present values over 20-yer project ltfe, discouated at 12X.1/ On-lerding rates for agriculture at 10.961 auly.j/ Total project costs excludeing farer labor contribution, costs of support services

(repaid frao service fee).k/ Project charges as a percente of project cost.

120 - Annex 3Table 8

CHINA

SONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Main Conversion Factors Used

Standard Conversion Factor a/ 0.80M&chinery/Equipment b/ 1.50

Energy - Coal 2 12

- Gasoline 1 55

- Dlesel 1 13- Electricity 2 00

Transpot - Road (state' 1.26

- Rail 1 25Labor - Unskilled (rural) 0 80

- Urban unskilled(state sector) 0.54

- Urban unskilled (non state) 0.80

- Technical & Skilled Labor 2.00Other Non-Traded Goods 0.80Earthworks - Aquaculture 0 84

- Irrigation 0.79

a/ SCF "(Official Exchange Rate)/(Shadow Exchange rate ) - 5.75/7.5

b/ Based on conversion factor of 1.0 for imports under SCB and 1.5 for

locally made machinery and equipment.c/ Border prices would be used for steel, cement and timber.

CHINASONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Border Prices for Principal Products and Inputs (1993 Constant Prices) a/~~~~~~~~~~. . ..... ...... ....... ............. . ... ... .. ....... ............. ... .... .............................................. .............................................................. .......

Rice/Wheat Corn Paddy Soybean Urea TSP DAP leef Pork Poultry Nutton Shrilp tog

............................................................................ ....... ............. ......... .......... ................ .... ...... .....

Net Trade Status H X N X N N x x x N x X

1993 Prices

Uorld Narket Prices:(USS/t) 170 102 265 263 118 115 125 2,580 2,003 2,067 2,700 11,620 400ocean Freight:(USS/t) 45 22 44 25 34 34 34 250 50 300 125 300 20CIF/Fro Dalian (USS/t) 215 80 309 238 152 149 159 2,330 1,953 1,767 2,825 11,320 380CiF/FOB Dalian (Yuan/t) b/ 1,236 460 1,777 1,369 874 857 914 13,398 11,230 10,160 16,244 65.090 2,185Port Charges andDistributors' Margin c/ 136 66 185 148 104 102 107 1,231 1,036 939 1,487 5,883 222

Transport-Port to Wholesalers d/ 9 9 9 9 9 9 9 938 938 938 938 938 9-mill to Wholesalers e/ 13 13 13 13 13 13 13 125 125 125 125 125 13

Ex Factory Price 1,394 372 1,984 1,198 1,000 981 1,043 11,104 9,132 8,158 18,793 58.144 1,941Processing Adjustment 70XProcessing Costs 50ay-product values 70 26 44 140 0 0 0mill gate Value 1,464 398 1,383 1,338 1,000 981 1,043 11.104 9,132 8,158 18,793 58,144 1,941Transport- Farm to Hill f/ 5 5 4 5 5 5 50 S0 S0 50 S0 50 5

Economic Farmgate Price 1,459 393 1,378 1,333 995 976 993 11,054 9,081 8,108 18.743 58,094 1,936Financial Faragate Price g/ 640 580 1.200 1,800 1,000 1,600 1.200 9,000 6,000 6,400 10,400 39,000

2005 Prices

World Narket Prices:(USS/t) a/ 143 91 262 252 146 131 150 2,740 1,900 1,950 1,889 8,990 322ocean Freight:(USS/t) 45 22 44 25 34 34 34 250 50 300 125 300 20CIF/FO8 Dalian (USS/t) 188 69 306 227 180 165 154 2,490 1,850 1,650 2,014 8,690 302CIF/FOB Dalian (Yuan/t) b/ 1,081 397 1,760 1,305 1,035 949 1,058 14,318 10,638 9,488 11,581 49,968 1,737Port Charges and

Distributors' Margin c/ 122 61 183 142 118 110 120 1,314 982 879 1,067 4,522 181Transport-Port to Wholesalers d/ 9 9 9 9 9 9 9 938 938 938 938 938 9

-Nilt to Wholeselers e/ 13 13 13 13 13 13 13 125 125 125 125 125 13Ex Factory Price 1,225 314 1,965 1,141 1,175 1,081 1,2Q0 11,941 8,593 7,546 13,710 44,383 1,533Processing Adjustment 70XProcessing Costs 50By-product values 70 26 44 140 0 0 0Nill gate Value 1,295 340 1,369 1,281 1,175 1,081 1,200 11,941 8,593 7,546 13,710 44,383 1,533Transport- Farm to Nil fl 5 5 5 5 5 5 5 50 50 50 s0 50 5

Economic Farmgate Price .1,290 335 1,364 1,276 1,170 1,076 1,195 11,891 8,542 7,496 13,660 44,333 1,528Financial Farngate Price g/ 640 580 1,400 1.900 1,000 1,600 1,200 9,100 6,000 7,000 10,400 39,000

a/ Eased on World Bank Coodity Price Forcasts, Augst 6, 1993, adjusted to 1993constant prices.

b/ Exchange rate of Y5.75 a USS1.c Port charges of *25/t plus 92 distributor's margin. 0 fd/ Distance from Wholesalers to port Is approximately 300 km from Songilao to Dallan

by rail at YO.025/ton/km adjusted by 1.25 CF. we/ Distance from Nill to Wholesalers Is approximately 50 kg by road at YO02/t/km, adjusted by CF of 1.26.f/ Distance from farm to mill is 20 km on average by road at Y.02/t/km, adjusted by CF of 1.26.g/ Eased on weighted average of 1992 negotiated and market prices In Songliso.

Anex 3- 122 _ Table 10;1

CHINA

SONGLIAU PLAIN AGRICULTUUAL DEVELOPIENT PROJECT

Suimry of Econaic AraLysis

........................ .................................................... _._

Arnul NPV EconormicInc. Not Return C 12S Rates Of Return

1. Crops CY'00) (YTO00) S

-Sngpo Irrigation Scdm 22,743 96,3 343-Songpo Irrigation Schem 19,080 79,105 54.7-Wazhonggeo & Nuajia Drainage schm 12,312 39,602 36.0-Fuy-Conversion of Wastetard 7,572 20,U1 28.2-Flax Pro. tion 3,392 15,054 38.4-teclain of Saline S Alkalinr Lrd 23,861 62,918 25.9-Conversion of Drylard 106,357 368,291 48.0

Total Crap Cpoant 193,817 662,6U8 423

2. Salt & Water Conerv etion 29,555 54,624 25.4

3. Orchard Develowment-Apple-pear 84,085 206,679 45.4-Apple New Planting 116,565 330,563 47.5-Apple Tap Grafting 64,545 241,261 59.0-AppLe Isprovmnt 10,707 40,314 4.e0-Pear New Planting 4,399 13,492 37.9-Pear Improvement 3,395 13,402 39.2-Apricot New Planting (KerneL) 27,923 62,619 31.7-Apricot New Planting (Fruit) 5,094 11,324 30.8

Total Orchard Development 316,718 917,654 46.9

4. Livestock Devolopnent- Cattle Fattening-Liagning 13,076 40,257 29.0- Cattle Fattening-Jilin 18,552 73,465 66.6- Cattle Sreeding-Lisoning 5,394 10,240 19.6- Feedlots - JiLin 2,73 9,775 30.7- Der Stud Farm 1,322 1,637 17.3- Doer Household Pro. ction 0,793 19,366 37.7- Pig Fattening 10,230 19,968 20.9- Goose Breding 2,190 3,056 17.2- Rabbit Proi.ction 3,346 7,6U6 30.2- Goose Fattening 1,971 2,601 17.2- Gr asland l _ovemant 66,275 36,325 18.9

Total Livestock Development 100,323 327,366 27.2

5. Aquaculture Developnent- shrimp 5,2W0 13,390 22.0

- Scallops 20,690 69,673 39.7- HNrd Cl_ 1,600 3,570 27.1- Short beck Clam 1,596 4,577 26.9- River Crab 1,560 2,691 22.6

Total Aquaculture Developmnt 30,726 113,901 25.6

..............................................................................

- 123- Annex 3CHINA Table 10.2

SOMGLIAD PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Summsry of Econamic Analyst.

Agro-Indiutries *nd Livestock Processing Components

.......................................................................................

AnwmL hPV EeorimicNet a Rate ofeturn 12X Return

...... ......................................................................................

6. Aoro-industrie Component............. .....................

- Haichng Appis Juice PLant 6,587 12,925 20.4- Tat An Dogb ne Paper MILL 16c929 43,726 24.1- Lwping Furfural Proeesing Plant 1,867 4,716 24.0-KaIyumn Nwthorn Produets Plant 15,247 54,659 35.7- Xl fng Wild Herbs wd Nuhroo 2,549 7,324 28.2- Xincheno Peenut Processing 26 774 89,617 30.8- Lisoy wi Pectse Enrymc Plant 7,473 19,311 24.4- Longcheng Sescm Seed OIL 8,627 33,365 46.2- Dataaihan Appie Fan aid Coldstore 681 985 16.8- Haiching Coldstore for Fruit & Veg 2,673 9,395 35.4- LI shu AnhydroLm Alcohol Plant 36,713 59.088 18.7- Shuwng Yano Pulp £PLapill 15,126 40,140 24.8-Jiutai Tawery ad Lether 25,766 41,196 18.0-Oinn An Flax Processing 23,326 47,414 20.4- De An Sone Gelatin Pr.uetion 13,253 30,866 22.1- Yurhu Nodffied Starch Plant 10,282 12,992 16.4- Nonw An Gaoe Down Garmnt f ctory 2,276 5,4W 23.1- Shwig Yang Deer Pro. ts 10,635 32,18 28.2- Mong An Goose Feather Workshop 2,103 6,696 28.6

Total Agro-Indutris 228,912 553,303 23.1

7. Livestock Processing....................

-Chwtu Cattle Attoir 10,540 33,556 30.2-Chgngtu Rabbit & Goose Abattoir 2,017 4,756 22.1-Zhanu Goore Abittoir 5,334 22,760 51.3-Shuino Limo Cattle Absttoir 9,234 30,U4 32.0

Telpino Sheep Abittoir 6,459 6,883 15.7- rong An Goose Slaughterhouse 3,086 8,303 23.9-D Hui Cattle Abattoir 20,096 54,442 25.7

Total Livestock Processing 56,766 161,538 26.6

Total Project 956,819 2,811,032 32.2

…--.--.-. .-...--.------.--.. _-.------____---.-__......----......-....---.---.

-124 - Annex 3Table 10.3

CHINA

SNGLIAC PLAIN AGRICLTItAL DEVELOPENT PROJECT

Summry of Sewftivity Arliysls

.. .. ............................ .............._ . ...... ...... ........

Switching Value G 12X Redu Price Invtamnt Irpitha SO ............-.- enf Its Folls Costs CostsCase UIncremse by Increse IncrsERR BeC ffts Costs Coats by 102 by 10 by 102

1. Crop Caponnt *2.3 45.0 31.5 29.0 37.0 39.6 40.0

2. Soil. w ater Conservation 25.4 59.0 145.0 42.0 23.8 24.3 25.1

3. Orchard Develop nt 6.9 51.8 161.5 4.6 42.7 45.1 "4.J

4. Livestock Devetoopmt 7.2 -17.2 20.7 9.3 18.3 22.0 21.3

5. Acmculture D.wtur o -nt 25.8 20.2 18.5 21.2 13.4 24.1 22.5

6. Agroin tiles Cowponant 23.1 1Z.3 14.0 10.0 14.3 21.3 16.6

7. Livestock Processing 26.6 7.5 8.1 3.9 5.3 25.6 8.9

TotaL project 32.2 29.5 28.4 - 1J.0 28.2 29.2 30.8

...........................................................................................

- 125-- Anne.x 3'* - Table 11.1

* ZM PLAI AmLOAL UM T tM-

NW 14S1_v Inaug - JIti

Tow I T_m 2 T_3 *_ t-IudIm, sWet Ptim iAmL PtIvnd AaL PItuW AuUm Ptwd AeMm Pt* Maul

LOW Beelafaw for Peo he

cm" lnmrmw he

* hPu m LaU so

Apis. Walie~iw u

Wiewi,l Pta he., _ ~~~.

Prttlew t

-wftftlfm Eb Tm*wI Traening

- Cmw, Tde1ie p..*TrainRing appa M

* usw -t w........

AWe* _w Ptwlng he* To brftrig he

. _wwm *_w3* l mw*h*

_ _ e * _m *'ueFeuf heaEm AP he

.W Em

AgrgwmismL hemPisrtft Iritame e

_wowri tilit"w

tfid r

PayIeW tJ e

- Irrifettd Most Armwumt Yeled tM_bt t a 4 o

Cm I-nw tooCM"n P r"t1 Em "Se_b.m Yield tAs

Nediciws Pt~si Em- N~e*,l Pirrsot by Spi-t t/1YiLdh N" imtm

ute *teld VhmApte tlFi

Per Yield tonPowr =*Atlm tEmApreit TieWd tIeAprimt P _tim EmApiaet-tarv.l fie*d tiNApricmt-e PwmiPntdu" tn

- 126 -Annex 3Table 11.2

am

_uo zIpu tiIe In,4. ~''Mw Nodh _mIghOW - LI_wdt Rvilmo

poetm& Peep6diseIm s btk Pta_ Mint PiuuW Aini Ptm Mint Pi_ *aff Ptiwu Min

Irr4g.gte 94jr-om heIrrtIg.g 9-4ugI heIrrCm m _ hm

a_b I_t

_ AA

id go Arm--cam km

besumin md u~ttinkqw

*TsmAp T.digiu, p.sCmafty vashoitio p.e

Trelnieig Emi4W mmWhiietaPOPti tim:

-SW an

.etmtessm bA0MqM ton'AM~w lirt. in

Pism Sin4elff he_ srlmis an *_

* gtur.o falitia _

L omal ?r.fmTor p..

* ?rmnleq of armtw, p..* r.ifheu of -- -T raining of nwow p..

&t tdI la

-_- - t

OI ~-Por Aom*Lluha Amu be* rnswtkAIng Ann he

__iw Inge t

Patfilge em

Ag' mhWasta mm-Tr ainingkits" m _

go ari^td voe tww_

Larc he*tu-sw he

-wtf em,

1 -M t_

Be aanL. _

NW% ton h

Apomomcss i

CNINASONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROEJCT

Key Monitoring indicators - LleonIng Province

Year I Year 2 Year 3 Year 4 Year 5~~~~~~~~. ..... ......... ....... ........... ..... .... ................. ................

Unit Planned Actual Platwed Actual Plained Aetutl Plnned Aett'l Paiwned Actual....... .... ...... ..... ....... .............. ........ ................ ... .... ........ ................ ............. ............................ ... .... ... .... ..

Performance Indlcetore....... .......................... ..

field Crops

- Songpo Scheme AreaPaddy Yield t/hePaddy Productlon ton

* Songql Schem AreePadd* Yield t/hePeddy Productlon ton

-Irrigated Wheat Area,heat Yield t/he

Wheat Production tonCabbage Yield t/heCabbage Productlon ton

Drainage Iprovsmnt- kuaji Area

Corn Yield t/heProduction tonSoybean Yield t/heSoybean Prouctxtin ton

- Vwngzhonggao AreaCorn Yield t/heProduction tonSoybean Yield t/heSoybean Production tonPeddy Yield t/hoPeddy Prockctlon ton

Flax Yield t/heFlax Production ton

Orchards

LishuIConuxhuliln Area

ApWle-Pear Yield t/heApple-Pear Production tonSoybean Intercrop t/heSoybean Produetlon ton

Soll * Water Conservation

Apple-Pear Yield t/heApple-P' er Production tonLarch Yield M3/heLarch Productlon 3 wPopler Yield Wi/hoPoplar Produiction *

poplar Production m3 .............................................................................................................. ......... . . . ...

-128-Annex 3

* Table 11.4IMM SlAN MI L _niL _m v ,ejurB Owd ft _thsw - ivftoo _ou

. .. 4'4 .d n *

Ywt 1_2?wJ*-Z-

I9tmv MSt ptWu Leat Pt_ Mt PtM z eant I Mfm Ptwe ur

oaf Cattl Paftu,Ie UR1

SrinE atl inl

Ll_tt m-eerm Uornal* P,it 4ie Sa

lina Pett4uU __ 4t *~e

_f *s _ta lw d

m. of Anmksa:,C.nt so.

11resding CmSu.ne p

.. ie T"I"4v te _

II*wdt. NaC* _t Sin C a..... LetrN......

*I tte -m* l_t Na

PrDow Si Eds

* Cent.

* UEre.1 _I_

swsw Letter n

_f Whik n mee 1 "wp

mm r

nr Conto Uft n-= ~~~

UiiattIip,0 6sho me.

panter Iti.

,: Pe_Si -

P f 1t noie o

-.E *1g P it. SibpPig Prm. U

-o -Em Pine e. U

TConlt

4ztinIe. Cm*ttaIs Inkar..fte p.-laer T.~,eImme p.*Pee,.me de*Pmnen.ite

*. dUer Na.

-Pis s

* Xtatta

._ hite

* Pig

, J _ Annex 3Table 11.5

_Xu PU L _r r

bw __ l_ - - _

_Lmwu fbt: M

1 - mlt__

"bflown mCM et _o ' at

- IetSI St-Trwhifd __l

*LinM 1.wltim ma

* top _ 3I

- @dlt Meri

* teiglni.- CIVi _ 2

* "3dt

* Trultng pwmlieU Cim SiAu,,-Civil work ma

* sildeq El

* "3t_

Traeiningeu* Civil We m

- Vdi_m St

* - -blt m* Weld. em

* 1r,i.I p,S- Clvi Creb ma

- "3d _

* Weldt _E

_ 1PUIAhiw p.u

- Stlding at

* l*i t "* Wemii. e

* ?.Ne

* Civil _e ma* Slding ma

Tewining*iv crabl

* 3t1_

C* Wl§es

- elieCl. U2

. tdlnT

* Uh¶ li l - livrab P r

* ,,t_1 U

* bad Ct. /

- Clt_ -- ks/Mt

* el b/m

- au dIn RI

Wliin f

- 4 aa _u"d

* l.a&i 11saits" a

Nor Cl_ *r*shle"" Ct_ *

*sleat Lo wdiSam ._M ao

ANNEX 3

_ 130. Tab" 11.6

CHINASONGUAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Key Monitoring Indicators - Irrigation & Drainage Component

Physical Ptog Udit Yw I Yew 2 Yew 3 Yew 4 Y_ 6

Plumed Actual Pluauaed Actual Planed Actual PIMa Aine Pbiwd Act

Jan Prowe

Scheaw

A. Eathw aPumping 000 M'Main Canals 000 Uo"

- bunch Canals 000 Ml- On-farm works 000 Ml

B. S btwea-Gates No.

-idges No.- Syphons No.- Culvert No.

C. Installation ofEqlipment- Pumps/Motors No.

Transmission LUns Km.Transtorrrers No.

2. Song Po k tlepn

A. Eartivorks- Pumping Stations 000 M3

Mein Canals 000 M3- nch Canais 000 M'

On-term works 000 Ml- Main Drains 000 M3

Branch Drains 000 M'

S. Stiuctuxa- Gates No.- Bridges No.- Syhons No.- Culverts No.

C. htstaledn ofEquipmet

- Pumps & Motors No.- Transmission Lanos Km.- Transformers No.

3. Waho G o s Hwua

A. Eafhwks

- Pumping Stations 000 MIMain Draim 000 Ml

- Brnch Drains 000 Ml- Field DrminS 000 Ml

. StucuNrs-ridge No.-pip"s Km.

- Gates No.- Culvero No.

_ 131_ ANNEX 3

Tab.o 11.7

CHINASONGUAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Key Monitoring Indicators - Irrigation & Drainage Component

Physical P mugrs Unit Yew I Yew 2 Yow 3 Yew 4 Year 5

khdstor

Planned Actual Pwed Actual Plumed Actale Planned Actual Planred Actul

4. Fu YuGroundwater

A. Wela ko.I. Pumps & No

MotorsC. Transamsaon Km

Unsa0. Transformer No.

Uoanng Proie

1. Reclamatbon ofWastabnd

A. Earnhwfo.*a 00 PumpingStation

-Main Canal 000 MlBSnch Canal 000 MOn-form Canal 000 M'

*Drains 000 M'

S. Stuctumac- Gates No.- Bndges No.- Syphons No.- Culvesr No.

C. Instalation ofEquipme m

Pumps & NoMotorsTransmnssion Km.Lines

- Transtomter No.

2. Grundwsterkrigaton

A. Deep Wells No.B. Shallow Wells No.C. Opon Wells No.D. Pumps & No.

MotorsE. Trsnsfmfsion No.

linesF. Transtormers No.

- 132 - A 4

SONGLIAO PLAIN AGRICULTDRAL DEVELOPMENr PROJECT

Supervision Plan

The proposed schedule for supervision work is as follows:

Proposed Expected Skill Staff Input

Dates Activity Requirement (staff-wek.)

no/yri

OS/94 Pro1ect Launch "orkshon Procurement, Financial I

Review procurmnt*, Managemnt. N a E and

finanial eanagem-nt, Auditing Specialists.

reporting, M & E. andauiiting.

10/94 Suervimion Niosion Economit, Irrigation ngin ar, 10

Supervision toa will visit Agriculturalist, Livestock

LiaCing and Jilin Prov, to Specialist, Aquaculturalist.

review irrigation/drainage Agroprocessing Specialist.

field/horticultural crops,livestock, aquaculture andagroprocessing cowxonants.

04/95 SuDervision Mission Economist, Irrigation Engineer, 10

Supervision tea will visit Agriculturalist. Livestock

Jilin and LiaonUni Provy to Specialist, Aquaculturalist,

review progress of irrigation Agroproceaming Specialist.and drainage, field/horticultural crops,livestock, aquacultur. andagroprocessing coponmnts.

10/9s suervirion Mirion Irrigation nginser. Agricul- 10

Supervision team will turalit.* Specialist, Livestock

review progress of irrigation Specialist, Aquaculturalist,end drainage, field/ Agroprocessing Spcialist, and

horticultural crops, Economist.livestock. aquaculture, andagroprocessing componentein Liaoning end Jilin Prov.

04/96 Sunervision Mission Economist, Irrigation Engineor. 10

Supervision team will carry Agriculturalist. Livestock

out a review of the project Specialist. Aquaculturalist.

covering all project and Agroprocessing Spcialist.

cqonpaents in Jilinand Liaoning Provinces.

10/96 Suo rvision Mission Economiot, Irrigation Engineer, 12

Review team /one each for Agriculturalist, Livestock

for the major componentas Specialist, Aquaculturalist.will be organized to carry and Agroprocessing Specialist.

out a aid-term review andagree on ch nges and followup actions.

1997- Sunervision Mission To be determined according

1999 Based on needs of project to the needs of project.

but at least one supervisiona year, last mission todiscuss PCR with borrower.

- 133 -

Annex 5

SONGLIAO PLAIN AGRICDLTURAL DEVELOPMENT PROJECT

Selected Documents and Data Available in the Prolect File

A. Reports and Studies Related to the Prolect

A.1 Orchard Development Project, Liaoning Province, Songliao Plain

Agricultural Development Project Management Office, March 15,

1993.

A.2 Feasibility Study Report on Red Fuji Apple Development by

Exploitation of the World Bank Loan, People's Government of

Chaoyang County, February 24, 1993.

A.3 Songliao Plain Agricultural Development Project (Liaoning)Appraisal Report, World Bank Agricultural Development ProjectOffice, Liaoning Province, June 1993.

A.4 Feasibility Report on Songliao Plain's Agriculture Developing

Projects in Siping Prefecture- -Apple-Pear Planting in Dahei

Mountain Range, Pomology Institute of Jilin Agricultural

Institute, Agricultural PMO of World Bank Loan in Siping

Prefecture, March 1993.

A.5 A Study of the Feasibility for the Project Mecharization in

Agriculture Engineering, Changchun Institute of FarmMechanization, February 1993.

A.6 A Study of the Feasibility for the Project of Mechanization in

Agriculture Engineering, Supplementary Material, ChangchunInstitute of Farm Mechsaization, June 1993.

A.7 The Appraisal Report on Songliao Plain Agricultural

Development Project, World Bank Loan Project M-nagement Office

of Jilin Province, March 1993.

A.@ The Tentative Design Report for Planting (Breeding) Project

with Producing 12,SOO Tons of Flax Original Stems a Year of

Oian An County Office of Leading Group Utilizing the Loans of

World Bank for Agriculture of Qian An, February 1993.

A.9 Feasible Research Report on Modernized Agriculture Developmentof Songyuan City, Agriculture Machinery Bureau of Qianguo

County, Fuyu Region, Songyuan City, May 1993.

A.10 Feasible Research Report of Using World Bank Loans toConstruct the Production Base of Irrigated Wheat in Fuyu

District, Songyuan City, the Academy of Sciences ofAgriculture Crops Research Institute of Jilin Province, May

1993.

- 154 -

Annex- 5

CHINA Page 2

SONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Selected Documents and Data Available in the Pro-ect File

A.11 Feasibility Study on Grain Development Project-Liaoning;Liaoning PMO, February, 1993.

A.12 Feasibility Study Report on the Agricultural Development

Program of the Shongua and Liao Plain Region in China,

Irrigation and Drainage Works of ChungChun; ChungChunInstitute of Water Resources Design & Exploration; Jilin,

March, 1993.

A.13 The Supplementary Feasibility Report on the Agricultural

Development Program of the Songliao Plain Region in China,

Irrigation and Drainage Works of ChungChun City, ChungChunInstitute of Water Resources Design and Exploration; Jilin,

June, 1993.

A.14 Feasibility Study of Fu Yu Groundwater Irrigation Scheme, Fu

Yu County Water Resources Bureau; Jilin, June, 1993.

A.15 Assessment of Ground Water Resources in Liaoning Province,World Bank Liaoning Cereal development Zone, Liaoning

Province Science and Technology Specialists ConsultingDepartment for the Design of Water Resources and Hydropower;

Liaoning, 1993.

A.16 Assessment of the Effect of Saline-Alkaline Wasteland

Reclamation and Rice Cultivating on Water Environment in

Zhangwu County, Liaoning Province Science and Technology

Specialists Consulting Department for the Design of Water

Resources and Hydropower; Liaoning, 1993.

A.17 Typical Design for Pipe Well and Canal System Wheat

Irrigation Project, Liaoning Province Science and Technology

Specialists Consulting Department for the Design of Water

Resources and Hydropower; Liaoning, 1993.

A.18 Typical Design for Large-Diameter Well Wheat Irrigation

Project, Liaoning Province Science and TechnologySpecialists Consulting Department for the Design of Water

Resources and Hydropower; Liaoning, 1993.

A.19 Typical Design for Pipe well Rice Irrigation Project,

Liaoning Province Science and Technology SpecialistsConsulting Department for the Design of Water Resources and

Hydropower; Liaoning, 1993.

Annex-5

CHINA Page 3

SONGLIAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Selected Documents and Data Available in the Proiect File

A.20 Environmental Assessment of Songliao Plain Project, Edit by

the World Bank Agricultural Loan, Project Management Office

of Jilin Province; March, 1993.

A.21 Appraisal Report on Songliao Plain Agricultural Development

Project (Synthetical Part); World Bank Agricultural Loan,

Project Management Office of Jilin Province; March, 1993.

A.22 Songliao Plain Agricultural Development Project (Liaoning),

Appraisal Preparation Report; World Bank Agricultural

Development Office, Liaoning Province; June, 1993.

A.23 Feasibility Study Report on Goose Series Project by Using

world Bank Loan in Nong An County; Commerce Design

Institute, Jilin Province; March, 1993.

A.24 Songlia Plain Agriculture Development Project in Siping, Pig

Raising Project, Feasibility Report, Jilin Province;

February, 1993.

A.25 An Appraisal Report of the Agriculture IntegratedDevelopment Project-Breeding Mutton Sheep on the Songliao

Plain, The Project Office of Chngling County, Jilin

Province; March, 1993.

A.26 Feasibility Report on the Establishment of Stud Rabbit Farm

Project of Chaoyang City, Liaoning Province; May, 1993.

A.27 The Report on Animal Husbandry Services System Construction,

Fu Yu District, Songyuan City, Jilin Province; March, 1993.

A.28 The Feasibility Study on Beef Cattle Raising in Fu Yu, Shong

Yuan Municipality, Jilin Province; March, 1993.

A.29 Songliao Plain Agricultural Development Project, Final

Preparation Report (Main Report and 8 Annexes), FAO/CP;

December, 1992.

B. Working PaDers

B.1 Detailed Project Costs.B.2 Irrigation and Drainage Component.

B.3 Field Crop Development Component.B.4 Orchard Development Component.B.5 Livestock Development Component.B.6 Aquaculture Component.B.7 Agroprocessing Component.B.8 Soil Conservation Component.

B.9 Economic Analysis of Project Components.

- 130.- CHART 1

CHINA

SONGLTAO PLAIN AGRICULTURAL DEVELOPMENT PROJECT

Proposed Project Management Organization

Bureaus ofAgriculture,

Livestock,icial chnicl Adviso Water Conserv.& Aqugculture

Administration cFincnce Engineering/ ProcurementPlanning A ccounts H L Msnagent j X jf

Municipal PLC

Bureaus ofAgriculture, Livestock, - - - - unicipalP

Water Conserv.L Aquaculture

& [ Administration | Ac counts | nineering &|

|Planming & Train. | T - Procurement

County PLG

Bureaus, of Agriculture, Livestock, - -_ County PM0O

Water Conserv.& Aquaculturc

Adminixtration |Account7 | Engineering | rcurement|Planning&Training

Songliao Plain ADPJilin Province

Supply and Demand: Fenguan- Hadashan Reservoirs

2000.0

1 800.0- 1800.0~~~~\ Total Supply1600.0

E 1400.0

U1200.0 <, c 1200.0 \ / ~~~~~~~~~~~~Surplus I 000.0 tal Demand

¢ 800.0

C600.0

400.0 _

200.0

0.0 . . . .

1 2 3 4 5 6 7 8 9 10 11 12

Month

- 139 - CHART 3.1

China - Songliao Plain Agricultural Development ProjectUserlbg Provinoc

ImplernntatIon Schodul

195 19 9- 119 999- 2000 2001r

Name1 Songliao Plain ADP - Uning Provin e Son li-o Plain ADP - UaoninC

1.1 errigation & Drainage _tion L Drai go

1.1.1 Reclamation of Saline-Alkaline Wasteland

1 .2 Conversion of Drvb4nd to IrTigated Wheat

1.2 Fied Crop D pmnteopmnt

1.2.1 Fertilizers

1.2.2 Agro,mnchinery

1.3 Orcharde _ ~~~~~~~~~Orch rrds1.3.1 Apple Now Planting

1.3.2 Apple Top Gratting

1.3.3 Apple Inprovement

1.3.4 Peor Now Planting

1.3.5 POOr Improvement

1.3.6 Apricot New Planting

1.3.7 Apricot New Planting for Kernel

1.3.8 Apricot Improvemwnt

1.4 Uvetock Developm c Development

1.4.1 Cati Production_1.4.2 Rabbit Production

1.4.3 Door Breeding

1 .4.4 Deer Production

1.4.5 Geese Production __I_I

1.4.6 Abattoirs (catUe, rabbit & shtep)

1.4.7 Down Proceseing

1.5 Aquaacure 1.5 Aquaculture Aquaculture ! I

1.5.1 Shrimp

1.5.2 Scallop

1.5.3 Hard Clam I T

1.5.4 Short Neck Clam

1.5.5 Crab

1.5.6 Cold Storage

1.5.7 Hetcheriee

1.6 Agroprootsing Agroprocessing

1.6.1 Furfurad

Piqect Senobe Pwn ADP - Liem. Ck" cGPeiS.mwywDO: 1I23193Tmk MnwL: R. Jmwj M bme a.. Up O

1

- 140- CHART 3.2

China - Songliao Plain Agricuttural Development Project

Implenmeaden Schedule

994 1995 1996 I 1997 1998 1999 2000 2001

Name lTTT1.6.2 Poenut Protein

1.6.3 Ucoyang Hawthorn

1.6.4 Kaiyuan Hawthomr

1 .6.5 Xifeng Wild herbs

1.6.6 Bluih Dogban_

1.6.7 Sesame oil

1.6.8 Apple juice

rr.e: SwnkaO Pion ADP - cIei Crib"dm OFam : II121313 _ _ _ _ _ _ _ gmk Me-aww FL Jd.wd MUWS Mum..Lop

2

- 141 - CHART 3.3

Ching-Songliao Plain Agricuttural Development ProjectJun Provinoc

Impnementation Schedul

1994 j 1936 j 1996 j 1997 J 1998 1 1999 1 2000am.e JQ*3040 A 3Q3 Ia21 a03 0 II(Songiso Plin ADP - JWin Provinoe I I I 1 Songliao Plain ADP - Ji

1. 1 Irrigatiort & Drhnaio v Irrigation & Drainage

1 1. 1 Songi Irrigation Schema

1.1.2 SongPo Irrigation Schema ______I__

1.1.3 FyYu Groundwatr lrrigaton Schm _

1 1 .4 WazhonfGao & Huejis Drainage Schema __

1.2 SBo & Water Conservatlon l Soil & Water Cornervat

1.2.1 Structuree

1.2.2 Small Reservoirs & Wells

1.2.3 Larch & Poplar Plntation = _

1.2.4 Pinguoli Plantation _

1.3 Field Crop Development I I I I Field Crop Developr one

1 .3.1 Fertilizers

1.3.2 Agromchnery =

1.4 Orchards Orchardc

1.4.1 Pinguoli

1 .5 Uveetock development ; ' Lvectock developmen __

1.5.1 Cattle Production

1.5.2 Sheep Production

1.5.3 Door Production

1.5.4 Goese Production

1.5.5 Pig Production

1.5.6 Abattoirs Icattle, rabbit & sheep)

1 .5.7 Down Processing

1.6 Agroprocessing I I I Agroproceasing _

1.6.1 Yu Shu Modified Starch Plant

1.6.2 U Shu Absolute Alcohol Plant

1.6.3 Shuang Yang Rice Strew Paper Mill _ _

1.6.4 Qianan Flax Textile Mill

1.6.5 Jiu Tai Tannery

1.6.6 De'An Bone Gelatine Plant

ict: Songlio Plain ADP - Jln Crttical Pro...o Surnrv y:e: 11/3/03 t l-U;k Managor: R. J.isOrd Il* Rold Up

142 CHART 3.4

China - Songliso Plain Agricultural Development ProjectAgrolndu_Me and Livtock Proce_shg Component

Typicl Impberntation Scheduis

11 1994 1995 1996 1997

iame JF I N I IJ |S DIJIFLW |J IJIOINDDIJIF J FS|O JMF | JiA

I AgroindustrIe and LUvetock Prooesaing Component V| Agroindustries _nd

1.1 Land Acquisiion Land Acquisition

1.1.1 Site selection

1. 1.2 Soil load testing

1.1.3 Water ewnple

I 1.1.4 Negotiation for purchase

1.1.5 Legal releme of land

1 1 6 Site purchase

1.1.7 Site area clearanoo

1.2 C_i Desin and LC dding Procedure Civil Design and LCB Bi dding Procedures

1 .2.1 Auxiiary buildings

1.2.2 Production building t1.2.3 Civil specifications I1.2.4 CIvi tender preparation

1.2.5 LCB tendering i _ _ _

1.2.6 Opening bids

1.2.7 Bid analysis

1 .2.8 Place civil orders

1.3 Civil Construction Work T civil Construction Wo

-.-1.. ielayot1

1.3.2 Boundary walls

1.3.3 Site levelling

1.3.4 Power lines

1 .3.5 BoreweUlls

1 .3.6 Office buildings

1 .3.7 Plant buildings

1.3.8 Effluent plant construction

1.4 Equipment specification and ICB Bidding Prooedure _ Equipment specification and ICB Bidding Procedures

1.4.1 Equipment designispecs

1.4.2 Bidding docurnents

1.4.3 Translation to English

1.4.4 Printing i l

1.4.5 Send to Machimpex

1.4.6 Approval by SPC -1.4.7 Approval by World Bank

1.4.8 ICB Bidding Procedure _ _

roomi: Sorch.. Pt.n AOP cuiPvspnm 5a-ys,

mae: 11/31C3ask MsnbW: IL Jaseed No g Mimtua P. Up

1

- 14'3.- CHART 3.5

China - Songliao Plain Agricuttural Development ProjectAgroindustrie. and Lestock Proomeshng Componnt

Tvlkal I_mplmentation Sehedule

1994 1 1995 1996 199,Name i4tM J hN4hlDIJIFIMhl IJIAS INtDIJ JF|AJIJJLSJOOND J F

1.4.9 Opening bids * |

1.4.10 Bid analysis

1.4.11 Approval by SPC A1.4.12 Approval by World Bank

1.4.13 Plce orders

1.5 Equpment hlbtaUaton Work - - Equipment Installat

1.5.1 Equipment deliveries _ _ _

1.5.2 Equipmnt instAllation

1.5.3 Pipework installtion

1.5.4 Electrical cabling

1.5.5 Comrnbionis g__

1 .5.6 Product trials

1.5.7 Effluent plant testng

$wc .rjmft* dn ADP _ _ _ _ _ _

aks a138 R.a~ftam upk Mangem_~ K.. J_ u

_~~~~~~~~~~~~~~~

Chart *A

' CHINA PUOCtIJMUET tCHtDULE FOR IOUIPOT AND MATERIAtS EsL fll s f ?OVINCC LIANIPG

Package I VI__ IIConstruction Kateriala ICE 6.3544 ava.e

Package 2Chemical fertilizer IC! 7,757 *~n

2Package I __. _

Plastic Imaterials Ica 7.305 t T I Ie

| god goods Aing L -- - - - - - X zm

package 4Spialiaed Vehicle IC! 12.415 1

?ackag1 5 Cot I -e_Specialzled Ve_hicle lCD 12.256 Aaya.. =2nd Batch CA

Package 6AmAgriculture. Machinery ICE 741

and Equipment *a

Agro-froceeaving IC! 18,024 Nymg Etquipment ATA p

I/ Base Costs ac~ueMey gp*.m M IO A.IN meyeet *ee*L EWIYIIYma~waavme a~,mma in'..e a. ,.a,..ma~mNo "A,WeWNa PAUL OML-10U Al ?s . mo,U..tt ..m.,m

04SAMAN" *P low ~ ~ ~ ~ ~~~~* ~eme

lopM "C. lo

Chart Asate I of 2

CPOCURIJNMINT SC"HDUL5 PON IOUWUIT AND AMATINIALt S_______________ _ CRIIUt AP 9' O n IP ICK JILIN

PackhaeI I tIIc I _

Steel. l Ber. Cent tCC 10.483. _ - _ _ _

Package 2-3 V'PCeical Fertilizer/ 13 .87. - - - - - e

Peticides

Package Ce.ent(2nud Batch) IdB 1,000.0 Ill."l- - -

Package 5Diesel Ica 2.405 a".-- .-- --- ~

Package 6-7 W- 7Construction Vehicle, a. ice |.859.4 | -

Specialized Vehiclesa ___ AC'".

Package S lAIlL _-l Cattle Slaughter and Ice 4.199 S.

Processing

Packaga 9 4 -LSheep Slaughter and ICa "93. "Me _ _. _ _

Processing elf

Package tOlc

Coose Slaughter and lC .I28.9 Mv-a -- -

Proceasing I____

Package IiMcdiilaed starch icR 3.034.0 u.4: - -

A-Mm"m sSmawuNYsuMinuUA&u yo. MI Oh "uJARAMI 0U ,ucac ".660. C,M s Wf.t H OAC0`6.g?".% tellg.9*.00c6u

*te ; _ _ Id10. ^t__ _n _ ComC _..a.o thu e _ah. _v* =hW ea e60 .uc eC _ l3 _t. !Fe#

9-wor-'''-!, 6wA aw".W '0 m.W to oe..w p~" e4| c...2 -"..ca..>5-6 ftStea4_I 0 mehu".u *°_ .o0t oe e,v c.,_a*.ceucs_Ilts l ee_ *%Sc lEll a-ce_" | te C"enx 1 *-t

to cow ee_e>e-w X *^w B R__,@,t ft *"COW: * ee O ALCO-11ID

w zw1_||we-t_tca_teuro t esze^yese.Xe¢z|_zeIxoeg ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~co-*_eziALeaTm ee_low"_e"*e

1-4ltvCW.M PO.LWIMDT

FORM NO i1`3

Chart 45

tag. 2 of 2en*t: CauwA PROCUREMiNT SCHEDULE FaaI IaLWWtNT A,D MATIRIALS IIOVIlCtI J IL11

A'S MIWAIW~~~~~~~~~~~s 4 S969

Package 12 MLishu AlcohOI ICB .378.9 AIvWD

-_ - ---

Package 13Straw Paper Hill ICe 2.771.7 I*ina _ _ -_ _ _ _ _

Package 144 4-Leather Processing lCD .150.7 w _ -

Package 15Gelatine Processing IC 1 226.4 m.msm;

Package 16Flax Proceuuing IC& 4.766.8 AUIn@ I

Package 17M Tractors (Datch 1) [CB 1.270.5

O* - - - - - - | -

Package la10R~Tractors (BitcIm 2) ICb .270.52 M*". r _ -_ _

Package 19 7gTractor* (Batch 3) ICB 1.270.52 RtnCI _ _ _ _.

Packate 20 t inTractors (Batch 4) ICB .210.52 02--a ~

Tractors (atch 5) l CID 1.270.5aW 1 A J I-a-'S Ieua .l_tS.

KG-bII 010- 0-aRDn.A om A c a. e. p a mA "v Ltfs ,1 .. 0 -2..15 -I S.lt nc - coa c* .G*_IIAScgIC "^Ax nminio SND 01t0.A' M" mdio ..

so

411cmtOP M"MACVOW FMMeAA1.FsCAVIDsalef*oa,alm.Al,.. tICAAO*ICOin'O 10* ofVA S oo,--110a-_aatu^^_t 5a "M la II'A

or owcoks!gumvmpo~ ~~~~~~~~~~~~~~~~~~~~~I

.)

- 138 - CHART 2.2

Heilong Jiang

|Nen RiverX

Had\sa RsrorrFirst Songhua River m

\planned:4 ?2BCM) (REQ. 04.2 BCM38 3BC

Fu Yu Station->lll17.2 BCM

Ca cond Wate Su River

(Req. 0.300 _ CMu F__w_Hadasa ReserS ong Po Irrigation Scheme(planned:4.2BCM (REQ. 0.062 BCM)

ChanE Chun Water Supply =5N.~~~~ -W -ilin

{Req. 0.300 BCM)

Song Qi Irrigation Scheme Scako tto

(Req. 0.050 CM1)

Fengman Reservoir(Existing:10.2 BCM)

Inflow 13.6 BCM

Songliao Plain ADPSnhematic Drawing

Songhua River nystem

- 139 - C 3.1

China - Songliao Plain Agricultural Development ProjectU4ne P °onm

kwplamornrutn Sdadi

1994 |199E |1996 | 1997 | 1998 1999 |2000 |2001|

NameJ1 SongIac Pbtn ADP - Wanin Pro $; Songlijo Plain ADP - ULonin

1.1 Irigation & Draohgo _Irriaton L Dreinago

1.1 .1 Recli~auton of Selina-Alkahin. Wwartlad

1.1.2 Converaion of Drand to Irrigatod Wheat

1.2 Fold Crop Devloment _Field Crop Dovopment

1 1Forailzonr |

1.2.2 Agromehinery

1.3 Orha rd _ Orcha rd _

1.3.1 Apple Now Pla ntin

13 32 Appi* Top Of tting __

|am 1 3.3 AppleIrnrovnt

1 3 .4 Poor Now Paning

1.3.5 Poor lmprovvnt n

1.3.6 Apricot Now Planting

1.3.7 Apricot Now Planting for Kernel _l _

1.3.8 Apricot irnrovHnont | _

14 ~~~~~~~~~~~~~~~~~~~~~~~~Uvoctoek Dobevon +[1b+ iv okDvdapment_

| 1.4.1 Cattb Production _

1.4.3 Door firo ding__ _

1.4.4 Door Production_

1.4.5 Geese Production___

1.4.6 Abottoirs (cattle, rabbit L shehpl

1.4.7 Down Processing I

1.6 Aquockeulu * s _ ~~~~Aquocuituro1.5.1 Shrimp

1.5.2 Seallop __ 1.5.3 Hard Clam - __

1.5.4 Short Nock Clarn

1.5.5Crab _

1.5.6 Cold Storage

1.5.7 Hatcehries__|

1.6 Agroproeoosing Agrprocessdng

1.6.1 F-urturol i

Dow. I _ _ _ rTook Mw"r FL^ Jew | WWmmu ~u

- .1A0) - CHART 3.2

China - Songliao Plabi Agriculral Development Projectu-rn

bnI.mW.Mm agdiweud

1994 I 9sSJ 1996 11997 1998 13999 2000 2001

1.6.2 Pawmn Prt_n

1.6.3 Usotene Hhown _

1.6.4 Kaiuon Hnwth _

1.6.s aifno Wldh tw= = 1.6.7s0 _*" ON

1.6.JAppl4be Mae

Pos I _no-u _wDow I ll^"jT_8n_,:t J_ __ J_w *.W Up

- 141 - CHART 3.3

China-Songliao Plain Agricultural Development ProjectJin Provinee

Impbemfenution Schedue

1994 1 1996 1 19s 1 1997 1998 1 i99" 1 2000Name 3 _03 1041 0Q3 41 ¢12AQ3 ¶4aQ 3 1 Q3g]4Q1 Q34_i01 Songlla Plain ADP Jn Prwu Song lain ADP-

1.1 iugatuon & Draitge _ Irrigotion & Drainage

1.1.1 Song0i Imgation Schwme [1.1.2 SongPo Imgaion Schma ______

1.1.3 FyYu Groundtwor Irrie ton Schw_l! m

1.1.4 WazhongG o & HuO Drainage Sch t im

1__ ___ __ ___ __ ____W___ ___e__C Sor WaerCanen

. , ~ ~ ~~I Fil C_pDvlpn

1U2volt eWaConoonc l c | _Sot L Wdtor Copmetrv

1.2.1 Sttratumztn

1.2.2 Snhoel Rourvoim L Wed

1.5.3 Deerh Proplar Ponto

1.2.4 Pingudi Pdntction _

1..5 Peld ProoDuo_lopm nt *;_M Foid C_rop Deveiop_ne

01.3.1 Fertilizon _ t m l l i

|_ 1_3_ 1 32 Agromc_ cn_ry_ _

1.4 Orchardesrhed

156 Uvestoek de _ioprrnt ___________ __ iUv otoek dovloprpnt

1.5.1 Cattle Production__ _

152 S S heo p Production ;

reek~~~~~ ~ ~ ~ _aae .Jssi ~ elUluo.Rle ~C

1.5.3 sDoorProduct=iiIn

1.5.4 Goes* Production_

1 5 5 Pig Production _

1.5.6 Abattoirs leattb, rbbt * sheepl); _

1.5.7 Down Processing

1.6 Agroprooeming goroesn

1.. Uf Sh Asolute Alco:hol Plant [

1.6.3 Shusrng Yang Rice Stmw Pqr MilN i11t

1.6.4 Marlon Rex T xdb Util I71"M

1.6.5 Jiu Toi Tannery=

1.6.6 Da'An Bone Goi tine Plant li

Om 111'3J 93i"s Took Manaor Ft JoWeard | Noniia L~T- L+ 7 > ̂ Itono Pklld Up

- XL42_ CHART 3.4

Chins - Songlio Plain Agricuttural Development ProjectAgreirduuvrie an Uiestock Prefseakig Conponent

TyPlee hI,pl.mher"atin Seliaduie

Name F J TJF JF *rS1 gridura 1994 1995 1996 199N . J |FI|v|J1J A[SODJ|EfiJI ASIOINFIIWMJJ ID NJ lFW>IAIJIJIf~ j^@ lk J|IIAI JI A_r__ind_o__ _ and Li__ to_ k P___________c _ _ _ Agroindustnes on.

1.1 Land Acquieden Land _______

1 -11 Site seoefton

1.1.2 Soil load tesung

1.1.3 Wator wnpble

1.1.4 Negodadon for purehaee

1.1.5 L o h_ d"" of _

1.1.f Sits pureheo

1.1.7 Sitewo el sra_ne

1.2 CIA Design end LCU Bdding P - _ri Civl Deign and LCB Bidding Procedures

1.2.1 Au Msry buikngo

1.2.2 Pro-duetionrbi W ng

1.2.3 Civil apeoficadone _ _ f_ _1.2.4 Civil tender prtparefon

1.2.5 LC8 tneridetng

1.2.6 Opoerno bids

1.2.7 Bid anyss . U _ _

1.2.8 Place eivil orders

1.3 CMI Conotruetion Worwk C Con_________Wo_rk

1.3.1S Ite laout _ - _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ i _ _ _ _

1.3.1 Site levelling ortrcio w~1.3.2 Boundary wake 1'1.3.3 Site bevoliNng__- I

1.3.4 Power lineo e-

1.3.5 Borewesl|

1.3.6 Officeo buildings _ _

1.3.7 Plant buildings

1.3.1 Effluent plant coneod aon

1.4 Equbrnent epeolflcatlri an d ICB Bidding Pregeduree ~ Equipment epecification and ICB Bidding Procedures

1.4.1 Equiprent deoignispece

1.4.2 Bidding docunents

1.4.3 Trandiison to Englsh 1 _ _

1.4.4 Prining 1 _ | _

1.4.5 Sond to Mactirnpex f |_E____

1.4.6 Approval by SPC

1.4.7 Approval by World Bank I _ _ _ |_

1.4.1 ICS Bidding Prorfure |_

Mn:~~~~~~ I 1, _

T_k M&_wr: FL J*__ "Id __ *11111_MM Uee upI __ 1~~~~Pep

14'3.- CHART 3.'- 143.

China - Songllso Plain Agricuttural Development ProjectAgrainduetise and LU ltek Pmeeemg Copnet

Typii i_mpuon n u Shedule

_ 1994 i995 1996 19'

Name J10 N J.JA.JI DNJWgJtA[S,OINO JFtsT J4J SliD5

1.492 Oparming bidse

1.4.10 Bid a*nly b

1.4.11 Approval by SWC _ _

1.4.12 Approvel by World RPl

1.4.13 Place order s _ _

1.5 Equipment Inlbfati n Workt _ _ - Equipment Install

1.5.1 Equipmnt deliveries

1.5.2 Equipment indtallaon _ _____

1.5.3 Pipework installation

1.5.4 Electrical cabling _ -1.5.5 Comnrisaion__ng _ |

1.5.6 Product triais

1.5.7 Effluent plant testing

Dow, 1 1___

. ~~~~~~~2

Chart 4A

CHINA FO~~~~~~POCIUIUIMNT KH01AI pOeI ImieNTm AMS MATIIBIAt in SosJ.nI,!Aia r1Bf _!VINCft LIAOWIPC

N.om,sm G a" - ea

Facliage ICaaatructio.i materials Ica ".weccs

Cheelcal Pertlileer Id ?.?57 - = = - - - ~~~- -- - - --

Plastica faertialize Ica ?.jos acama = -- - ---

Package 4

SlmutciallseadVeicl ice 2*A0S ccm -=-

Spacilaiied Vehicle ice 2.2SBc.ne--

2nd Batch

Agriculture. Machineary [Cs *414~ie- anA Iquipeent

Piackage IAgro-.Proesaing [CB 18.024 -11..a

I/ Bae. coats m imiw a

S-inn I.cu anca UinOM e,.aaafl. .... 'CL .a.. c..cc min.i... aa.L. aa.4 "G, aft~ff

am a,M.a*aua*VdM,c.a La .. .. a ,c.... aac,mcIa

* n a naBa WfS ca, ... as&% IIn.at... a.It.f .fcc

Carut As

Prf IMENT 9CI1DULI CON EOUWWU5I AND MAtIA0LSf C_IIIA_ _ f. gt. Pi.14 Anp PROVINCEu JILIII

mminw Ira ~ ~ ~ 1~ la. *.,9in9a -.

_________ if . ~ ~ I Et1iI" =f 1 UI i slllSElux 131lll;ii§xl2Xsii liEi~dl11ji- ~iPackage I - - - - - - - - - - -Steel. Timer. Ceme-nt ice NJ. 413. I 'm - .

Packaes 2-3Chenial t!artilizerl ICI IC 1.9 = - - -- - | - - -- pestic idesat

Packages 4 Licamant(d match) iIc I.00.8 m - -

Package 5DiegIl- - - - - - - - - -

package S-iCos cinVeh Icts a, Ice l.359.4 mo SpclliedVeICcles T

Package

C.ttle slaughter and IC_ 4.l99 mo s

s_e~~~~~~~~~~~~~~~~~t_ rt0_Z -- -----

Sheep Slaughter and ca 493. sProcessing -n - -- …

PVikaga 10 _S _#AMICoos. Slaugthter end IcR .2. os

fisces!n in

Package ofmodified starch Ica 1.034. , n

.ssinatega,MI onoog.eeq mum.~ :L -

a ,.an...,in..nina.en,inserraS.l* I .Ifls* ImrSuIun ,bC5C.# inOOinbon 5 te15.a,in rnt1,I as .in.*..~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~t'

Chart 43

Pae 2 o1 2PHOCUtIIMI liDutCi FOfI laUn?NT ALND MATEIALuI

b W 1 -- 1w113 0 01 to to -9 @t Package 12Lick. Alcohol 3d *3,09 ' -- -==- - -

Straw Paper Mil ECU .fll.leeeae .-- _ -_. -_ .- -. - - -T + t i- - ----------

C,a ic tle.fe@s" IS1. 22t., _-_____ 00 1 X11 I l lPackage 14 I 1 I 1 I1Leather Processing ice 1.150.? a

Package 5 |F ie rPackage 16Flea Proce_eisg *C *M.i-_ m--sa --___- - -- - --=

package 19Tractors (Batch 2) Ica 1.23O.52Sem -

Package 2tractora (Btatch 4) iS .230.52 mS

Package 20

Ice~~~~~~~~~~~~~~~~~~~~~~~~~~~~I

Tractor. (Batch 5) IC l7.5ees

oc~~~~ I ', --- ] I - -~~~~~~se.. e atlhe

c-ann--u ineaeets*Stea * -a" M. *n

a- eesoc.eSWtSosove'eo4*IcetS t*tee tt tlett a

9-Sl SvattMtCinl an ~~~~~~~~~~~~flt5 tea - as asseet - in.te.eSttCtI ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~bon-4a-mo,tsi. S,el in meeaSd..

- 147...

*6�hiU

H

a0

II __

ii __ __

Uhihe

0Uhia

0

a..hiU

a ahe U

CHINA

SONGLIAO PLAIN AGRICULTURE PROJECT

fRoroD CIOYING CAUNDAR

WAuDACCvED AILA

B? OCT NOV DEC JAN 13 "a APR HAT JUN JUL AUG sIP OCT

I-~~~~~~~~~~~~~~~~~~~~~0

Corne1.. Cars

Soybean Soybean

149 - ~~~~Figure 5.3- 149-

as~~~

Xe-~~~~~~~~ea

0.

!A I

0

4511e 3 OI _ _

Za 45

oi E_

0~~g

_ U '

CHINA

SONGLIAO PLAIN AGRICULTURE PROJECT

rtowu CRotYIN CAI4A

FLAX M QIAJ4' Coum

Di EP OCT MOY DEC JAN n3 me At HAT JUN JUL A11 3 OCT

CHINA

SONGLIAO PLAIN AGRICULTURE PROJECT

PRoosED CROPriNG CAtxDAR

SEP OCT Now DEC JAN FED NAN Al HA JUN JUL AUC SEP OCT

I I .. , I ocs I TAtEX:Ft~~I I U

Whe at Wheat Lbeans

_(Relay cropping) M___I1 en.

Soybean Soybean

Paddy Ries l_____

RUSSIAN FEDERATION

KAZAKHSTAN

rFION(;JIANG

MONGOLIA

> REPUBSLIC * soNUO N 4

JAPAN I

\t/ XINIIAN(G _/ rF g .5 ()NIN )PR An

.AFGHANISTAN G < >"4e tEA U.

I&* w J s b - r p=s °A 9-UNH JE.S

F., " - ~ ~ ~ ~ ~ ~~~ ~~~~~~~~~~~~~~~~~~~~~~~,Pof Th. W. A.* ~ ~ ~ ~ ~ LOPOWS -. ~ -*'o

Ud HAA I SHANDNAI

ONsX * d., DCHUAN J 0 OFGJ I A

-i HN -w a > 0 (

th F7ROVINCF CAFSTALSEr 5 rlJNeAN J / ,AJ ,

_ tROVINCE80UNDARIES ;0 7 2 e 2 t a~~~~~~~~~~~~~~~~~~~~~~~~~~~HAtNTERNATIONAtSOUNDARIES g _|9 <,NAM \_ tt7 tX ' \ HOHGlONG,UK~~IfusE

§ ~ ~ ~ ~ ~ ~ ~ ~~~~~~u orlso xo o w z 5 _ S EFES-) S{ wPIlPNS (

SO GLA PLISN 1 z 0 AGIULUA DVEOPMN HHIAD n r

'U.

SONGUAO PLAIN AGRICULTURALDEVELOPMENT PROJECT

,,,ft 5'-_-A H E L I N G J I A N G

#~~~~~ CfEIL.N.G !ANG

oW.AT_ j&~- ' 4

* .0" v * Al~

or amCArr",,u-/_.

Wuts 0 5 5 c6i b . t- -

0mm" iImAf ,

G

W !VSTOCK Ml5SG ,

*AC.1 NOcSSIG MAIWT

tAOfa 7 " *> ° q § *

: -sf

*AUt- Nuo~~~~~~~~~~~~~ao"j 4tAu

I

- .- :.N>.. A"Ef / r --

_ .: ..-_I I I N

-. - * A°°,/ °

NE I M O NGOl --

0~~~~~

, ' \ j ,.-' aS's,o'^'.

j~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I

" 3-

fwJ

_,,14~~~~~ *<b"r

/ )*O

~~~LIAONING

, t - -* . - - °- .,- ~~~~DEMOCRATIC

C s;- * ,-' ~~~~~~~~~~~~PEOPlE'S_"C , *9o ,.'REPUBUC OF KOREA

N-q ~ d0 -g

'* * w..

H E B E I * -RUSSIAN ' '

M DEMOCROATA

I'-'t' . N 'D OF

~~~~_- _ -PEPE', Sp

F.~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~W0-~~~~~

REPUBUC OF KOREA~~~~~~~~~~~~~~~~~~~~~~~~~~O,~~~~~/ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

; w5 ~~~~~~~4 -- # _- -

.0 s 1t 0- . wto.

"onm ~ ~ ~ ~ ~ ~ ~ ~ t PC

iw~~~~~~~~~~- 5 ~