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Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 10322-CHA

STAFF APPRAISAL REPORT

CHINA

SICHUAN AGRICULTURAL DEVELOPMENT PROJECT

MAY 29, 1992

MICROEFICHE COPY

Report No. 10322-CHA Type: (SAR)KItM, ff. / X84053 / A7 035/ RA2AG

Agricultural Operations DivisionCountry Department IIEast Asia and Pacific Regional Office

I This document has a restlcted distuibution and may be used by redpients only in the perfonnance oftheir officlid duties. Its contents may not othenrise be discosed wthout World Bank authorization.

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CURRENCY EOUIVALENT(As of February 5, 1992)

Currency Unit - Yuan (Y)$1.00 - Y 5.38Y 1.00 - $0.186

FISCAL YEAR

January 1 to December 31

WEIGHTS AND MEASURES

1 meter (m) - 3.28 feet (ft)1 kilometer (km) - 0.62 miles1 hectare (ha) - 15 mu1 ton (t) - 1,000 KG

- 2,205 pounds1 kilogram (kg) - 2.2 pounds

PRINCIPAL ABBREVIATIONS AND ACRONYMS USED

ABC - Agricultural Bank of ChinaACWF - All China Women's FederationBA - Bureau of AgricultureBOF - Bureau of FinanceBFO - Bureau of ForestryCAAS - Chinese Academy of Agricultural SciencesCATEC - County Agrotechnical Extension CenterCMIEC - China National Machinery Import & Export CorporationCNSIEC - China National Silk Import and Export CorporationEIA - Environmental Impact AssessmentEMP - Environmental Management PlanGOC - Government of ChinaGVAO - Gross Value of Agricultural OutputICB - International Competitive BiddingImO - Irrigation Management OfficeIPM - Integrated Pest ManagementLCB - Local Competitive BiddingLG - Leading GroupMOF - Ministry of FinanceMWR - Ministry of Water ResourcesNEPA - National Environmental Protection AgencyO&M - Operation and MaintenancePMO - Provincial Project Management OfficePO - Project Office at Prefecture/County LevelPOM - Plan of Operation and MaintenanceRCC - Rural Credit CooperativesSAAS - Sichuan Academy of Agricultural SciencesSOE - Statement of ExpenditureSPC - State Planning CommissionSPSC - Sichuan Provincial Silk CorporationSRIEP - Sichuan Research Institute of Environmental ProtectionWCB - Water Conservancy Bureau

FOR OMCIAL USE ONLYCHINA


Credit and Prolect Summary

Borrower: People's Republic of China

Beneficiarvy Sichuan Province

Amount: SDR 107.7 million ($147 million equivalent)

Terms: Standard, with 35 years maturity

Qnlending Terms: Onlending rates to final borrowers (productive entities andindividuals) will be no less than the Agricultural Bank ofChina charges for loans for similar purposes and terms.

Obiectives andDescription: The project's main objectives are to: (a) increase and

intensify productivity of existing crops by providing areliable water supply; (b) provide a complementary packageof integrated agricultural inputs, support services, adap-tive research, training and technical assistance; (c) reducesoil and water losses to prevent long-term siltation prob-lems and maintain soil fertility; (d) expand agroprocessingactivities to utilize locally available raw materials; and(e) increase incomes in poor and remote areas where farmersearn less than 50 percent of the national average, withparticular emphasis on helping poor women. The project, tobe carried out over six years, provides funds for: improve-ment and expansion of irrigation to 135,200 ha; establish-ment of two soil conservation demonstration areas and eco-nomic forestry; expansion of mulberry and cocoon productionwith expansion of supporting services; rehabilitation of teagardens and establishment of livestock production basescombined with planting pastures; and rehabilitation andexpansion of two paper mills and facilities for rabbit hairspinning, gallnut, goat and geese processing.

Benefits andRisks: At full development, the project is expected to increase

annual grain production by 440,000 tons, cash crops by66,800 tons, 2.2 million m' of timber, 455,200 tons of fuel-wood, 205,200 tons of mulberry leaves for production of1,116 tons of cocoons, and 1.9 million head of goats, rab-bits and geese. The agroprocessing component would produce20,400 tons of paper, 254 tons of angora wool, about 2,800tons of processed meat, 40 tons of down, 7,000 pieces ofhide and 500 tons of tannic acids. The pr^ject would bene-fit over 4 million people, and create about 600,000 full-

I This document has a restricted distribution and may be used by recipients only in the performance |of their official duties. Ius contents may not otherwise be disclosed without World Bank authorization.

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time equivalent jobs with significant contributions toward.poverty allviation in Sichuan's poorest counties. rheeconomic rate of return for the overall project is estimatedto be about 26 percent. No major risks are foreseen.

Estimated Costs Local Foreian Total---------- ($ million) ----------

Irrigation 119.3 47.2 166.5Soil Conserv&tion 12.6 2.8 15.4Income Generation 16.8 5.3 22.1Agroprocessing 17.6 19.9 37.5

Base Cost 166.3 75.2 241.5

Physical Contingencies 12.2 6.1 18.3Price Contingencies 23.7 4.1 27.8

Total Proiect Cost 202.1 85.5 287.6

Financinat Plan: Local Foreian Total---------- ($ million) ----------

Central Government 17.0 0.0 17.0Provincial/Prefecture Govts. 45.5 0.0 45.5Couwty Government 19.0 0.0 19.0Local Banks 9.0 0.0 9.0Special Poverty Alleviation Funds 10.0 0.0 10.0Enterprises and Farmers 40.1 0.0 40.1IDA 61.5 85.5 147.0

Total 202.1 85.5 287.6

Estimated IDA Disbursements

IDA Fiscal Year 1993 1994 1995 1996 1997 1998 1999

Annual 20 32 36 26 18 12 3Cumulative 20 52 88 114 132 144 147

Economic Rate of Return: 26 percent

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Table of ContentsPstes Ng.

I. BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . 1

A. Introduction ....................................a........... 1B. The Agriculture Sector ... . . . . . .a . . . . . .a . . 1C. Irrigation Subsector ................................... 2D. Soil Cor.iorvation Efforts in China . . . . . . . . . . . 4E. Sectoral Objectives and Bank Lending . . . . . . . . . . 4P. Agriculture in Sichuan 5G. Rural Poverty in Sick &a . 7H. Rationale for IDA Involvement . ....... . ... . 8

II. THE PROJECT AREAS . . . . . . . . . . . . . . . . . . . . . . 9

As* Location . . . . a . a . . . . . . . . . . . . . . 9S. Climate, Topography and Soils . . . . . . . 9C. Water Resources and Irrigation . . . . . . . . . . . . . 10D. Population, Farm Size and Land Use . . . . . . ... . . 11S. Rural Incomes and Poverty. . .......... .. . . 11F. Present Agricultural Development . . . . . . . . . . . . 12G. Support Services 13H* Infrastructure 14

III. THE PROJECT # . . . . . . . . . . . . . .o . . . . . . 16

A. Project Objectives . . . . . . 16B. Project Description . . . . . . 17C. Detaled Features . .r. . . . . . . . . . . . . . ... . 17D. Status of Preparation ... .. ... o ..... . . . . . . . .. 28S. Implementation Schedule .. .. . . . . .............. . 28Fe Cost Estimates .... . . . . . . . . . . . . . . . . . 29G. Financing .. ......... . . . . . . 30HN Procurement ............ . . . .. ..... 31I* Disbursements . . . . . . . . . . . . . . . . . . . . . . 33J. Accounts and Audts ................... .................. 34K. Environmental Impact . ................ . 34

This report is based on the findings of an appraisal mission In November/December 1991. Members of the appraisal team iziluded H. Kim (missionleader), J. Stemp, and W. Price (IDA), J. Smyle. C. Cronberg, 0. Hong (consul-tants). Others involved in the preparation and preappralsal were B. Albinson,J. Post, R. Dayal %IDA), P. Gilchrist, H. Lea, 0. Knowless M. Bi (consultants)and A. Nameed (FAO/CP). Peer reviewers comprised H. Froderikeen,E. Chobanian, K. Yeow, N. Jones (ASTAG), H. Plusquellec, J. Srivastava andH. lisa (AGRPS). The division chief is J. Goldberg and the department direc-tor is Shahid Javed Burki.

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a6seN.

IV. ORGAI O AND Mt ENT . . . . . . . . . . . . . . . . . 36

A. Project Coordination and Management . . . . . . . . 36B. Execution of Project Works .. . .. . . .. . .. .. a 37C. Mnagement of Production Activities . . . 37D. Vinancial Neagoement . . . .. . . . . . 38R. Irrigation System Operation and Maintenance . . . . . . . 39F. Project Launch Workshop .... *..*.*..... . 40G. Monitoring, Evaluation and Reporting . . . . . . . . . . 41

V. PRDoUCTNton MA .T8 PRICES . . . . . . . . . . . . . . . 42

A* Production * o 9 oe 99 oo o9 9o* 9o 42B. Markets and Marketing Channels . . . . . . . . . . . . . 43C* Prices . ... . .*..* . *. . . 45

VI. BENEFITS. JUSTIFICATION AND RISKS . . . . . . . . . . . . . . 47

A* Benefits *........*.......* .. 47B. Employment and Incomes . . . . . . . 47C. Women in Development ................ 47D. Rent nd Cost Recovery .......... ....... 48e. Financial and Economic Analysis 48F* Risks o oo 9* oooo v * o** *v * * 49

VII. AGREEMENTS REACHED AND RECOMMENDATION . . . . . . . . . . . . 50

TABLES IN TEXT

3.1 Irrigation Component: Summary of Works . . . . . . . . . 193.2 Soil Conservation: Summary of Works . . . . . . . . . . 213.3 Sericulture: Summary of Works . . . . . . . . . . . . . 223.4 Livestock: Summary of Works . . . . . . . . . . . . . . 243.5 Project Cost Summary . . . . . . . . . . . . . . . . . . 303.6 Project Financing Plan 303.7 Procurement Profile . 315.1 Irrigation Component: Summary of Output . . . . . . . 425.2 Other Components: Summary of Outputs . . . . . . . . . . 44

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1. Basi4 Data1. Provincial and Project Area Statistics2. Climate3. Project Locations4. Responsibility for Project Design and ImplementationS. Counterpart Funding: Amount and Sources6. Research and Training Program7. Summary of Agroprocessing

2. Pro1ect Cost Summary1. Project Cost Summary by Component2. Project Cost Summary by Category

3. Procurement1. Procurement of Machinery, Equipment, Materials and Vehicles2. Procurement Schedules

4. Estimated Disbursement Schedule

5. Farm Models and Croi Budgets1. Cropped Area, Yield, and Production2. Crop Budgets3. Cropping Calendar of Main Annual Crops4. Farm Models5. Rent and Cost Recovery

6. Econwomic and Financial Analysis1. Summary of Economic anu Financial Analysis2. Main Conversion Factors3. Border Prices for Principal Products and Prices4. Historical Financial Prices of Main Products

7. Monitorint and Sunervision1. Key Monitoring Indicators2. Supervision Plans

8. Summary of Dam Safety Review

9. Summary of Environmental Assessment and Management Plan

10. Selected Documents and Data Available in the Pro1ect Files

Chart 1 Implementation ScheduleChart 2 Organization Chart

MAnIrrigations IBRD 23092 and 23094Project Components and Sites: IBRD 23480

CRIN

SICHUAN AGRlI(ULTURAL DEVELOPMENT PROJECT

I. BACRGROUND

A. Introduction

1.1 The Government of China (GOC) has requested IDA assistance infinancing an integrated agricultural and irrigation development project inSichuan Province. The project'. main objectives are to: (a) increase andintensify productivity of existing crops by increasing the land under irriga-tion and diversifying into more economic cropping patternos (b) provide acomplementary package of integrated agricultural inputs., support services,adaptive research, training and technical assistance; (c) reduce soil andwater losses, maintain soil fertility, and Improve productivity of alreadyeroded areas; (d) expand agroprocessing activities to utilize locally avail-able raw materials; and (e) increase incomes in poor and remote areas vherefarmers' incomes are substantially less than the national average, with par-ticular emphasis on helping poor women.

B. The Amriculture Sector

1.2 Agriculture in China--including crops, livestock, forestry and fish-eries--provides sustenance for over 1.16 billion peoplet it is an importantsource of income for some 190 million farm families and accounts for about30 percent of the country's gross domestic product (GDP). Only about 137million ha of China's land area of 960 million ha are arable. Farming systemsintensively utilize small machinery, heavy inputs of labor, fertilizer, andwhere possible water. Nearly half of the cropped area is irrigated. Foodgrains occupy about 70 percent of total cropland and account for about one-third of the value of agricultural output. Intensive farming has allowedChina to meet the basic food requirements of its population, about 22 percentof the world's total, and to produce an increasingly sophisticated mix of cashand commercial crops, from less than 11 percent of the world's arable land.China's rural reform program, initiated in 1978, also has stimulated the agri-cultural sector. This program produced impressive growth and structuralchange by introducing the production responsibility system, increasing pro-ducer prices, and expanding the role of the market.

1.3 The gross value of agricultural output (GVAO) increased by 83 per-cent in real terms during the 1978-90 period (6 percent per annum), substan-tially Zaster than during the previous 25-year period (3 percent per annum).While significant growth in grain production was achieved in the early part ofthe period (peaking at 407 million tons in 1984), stagnating grain productionhas been the Government's central concern in later years, with productionranging between 379 and 402 million tons during the 1985-88 period as farmerssubstituted other crops for grain. Recently, however, grain productionappears to have risen to a new plateau, with 446 million tons in 1990 (anexcellent weather year) and 435 million tons on 1991, a year of extremelysevere floods in the Yangtze River Basin and quite serious flooding also in

northeast China. One major factor in this success has been China's admirableachievements in plant breeding--China was the first country to achieve thehybridization of rice--backed up by the vast network of local seed production,extension, and distribution units required to put new seeds and technologyinto the hands of the masses of peasant farmers. Due to this effort, nearly40 percent of the rice now planted in China is hybrid, as well as virtuallyall of the corn, while most of the wheats have high genetic performance poten-tial for the various agroclimatic regions in which they are grown. The Gov-ernment's strategy to increase grain production also includes consistentlyincreasing supplies *f chemical fertilizers, increased state investment inagriculture, mainly in irrigation rehabilitation and expansion, and introduc-tion of partial reforms in grain procurement, distributi"n, prices and subsi-dies. These reforms have recently included: the general fixing of provincialgrain procurement quotas at substantially reduced levels, with ever-increasingproduction increments priced at market-based negotiated prices; alreadyannounced increased wheat quota procurement prices for 1992, so that wheat andcorn farm-gate prices now approach world levels; the conversion of most offi-cial interprovincial grain shipments from quota to negotiated prices; in 1991,the first substantial increases (from 55 percent to 160 percent) in urbanration grain and edible oil prices in 30 years; and the establishment offledgling grain commodity exchanges for all major grains in various Chinesecities (e.g., Zhengzhou, Changchun, Wuhan, Harbin, and Changsha). In thecontext of preparing a proposed Grain Distribution and Marketing Project, IDAiS discussing with the GOC a future reform program involving the further sub-stantial elimination of grain consumption subsidies, the opening of the inter-nal grain trade to all interested units and individuals, the thorough commer-cialization of grain wholesaling and retailing enterprises, establishment of afutures market in grain, and eventual market-determined pricing of virtuallyall grain in China.

C. Irrigation Subsector

1.4 Water Resources Develooment. China's water resources are limitedand unevenly distributed. About 45 percent of China's total land area islocated in regions with less than 400 mm annual rainfall. A rapid expansionof irrigated farmland took place between the early 1950s and the mid-1980swhich more than doubled the effectively irrigated area in the country fromabout 20 million ha in 1952 to 48 million ha in 1990. This growth in irri-gated area reflected the high priority attached to irrigation and agriculturein the earlier decades and the widespread introduction of tubewell technologyfor exploiting groundwater in the early 1970s. Today, about 82 percent of thenational irrigated area is fed by surface water and about 18 percent is fed bygroundwater.

1.5 The productivity of China's irrigated land is about twice that ofits rainfed land. Irrigated agriculture accounts for about two thirds oftotal grain production and three quarters of commercial crop production. Theexpansion of irrigation facilities has been a major factor in the increase ingrain production from about 164 million tons in 1952 to present levels. How-ever, lack of adequate control structures and the poor conditions of many on-farm warks limit irrigation efficiency. Inadequate investment in constructionand maittenance of drainage systems has acted as a further constraint to pro-ductivil.y over much of the existing irrigated area.

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1.6 Water Resource Asencies. As the principal department for wateradministration under the State Council, the central Mlinstry of WaterResources (MWR) is responsible for overall water resources management--improvement and development of major rivers, planning of water resources formajor city water supply, basic construction of irrigatior, facilities, waterlsoil conservancy, rural hydroelectricity supply, and construction and manage-ment of large- and medium-size reservoirs used primarily for flood control,irrigation, water supply and rural hydroelectricity. The MWR employs about1,337,000 workers nationwide, approximately 7.5 percent of whom work directlyunder the MWR and 92.5 percent of whom work under provincial and local govern-ments. The MWR also directly supervises the Water Resources and HydroelectricPower Construction Corporation, and administers 13 institutions of higher edu-cation and seven regional river basin commissions. Each province maintains aWater Conservancy Bureau (WCB), responsible for the planning, survey, design,construction, operation and maintenance of irrigation, drainage, flood controlworks and rural hydroelectricity. Designs of major projects are prepared bydesign institutes of the WCBst projects covering areas larger than 20,000 hamust be approved by MWR. WCBs at the prefecture and county levels aredirectly responsible for the construction ani maintenance of most canals,associated irrigation and flood control structures and medium-size reservoirs.

1.7 Water Resource linancing. Projects for water resource developmentinvolving major river diversion or control with central government fundingmust be approved by the State Planning Co-ission (SPC). This approval ismade in accordance with annual and five-year plans and then is channeledthrough the MWR to the provinces involved. In 1980, when state investment invater resources was reduced, emphasis shifted away from new irrigation devel-opments to the rehabilitation of existing projects. At the same time, provin-cial and local governments began to assume more responsibility for initiatingand funding investments and operating and maintaining water resource projects.Since 1980, rising producer prices and incomes led the MWR to encourage theWCBs to experiment with increasing water charges. In 1985, the GOC prescribeda policy requiring all industrial, municipal and agricultural end-users to payvater charges based on full recovery of operation and maintenance expenses,major repair costs, and depreciation. The new water charge systems have sev-eral drawbacks, however. First, the provincially mandated water charges areset below national levels and are not revised regularly. As a result, infla-tion has rapidly eroded their real value. Second, prefectures and countiescontinue to enjoy considerable flexibility in setting water charges. Thisvariation led to inconsistent standards of maintenance and repair. The MWRestimates that assessed agricultural water charge levels in 1988 were only40 percent of national standards, excluding projects managed by collectives orindividuals below the township level. Third, collecting water charges contin-ues to be a problem.

1.8 Current Constraints in Irr1iated Agriculture. Despite past suc-cesses, China now faces numerous problems in the irrigation sector. Many ofthe large schemes constructed in the 19509 and 1960s now require major upgrad-ing or rehabilitation. Many still lack drainage and irrigation networks atthe tertiary and farm level--networks which were to have been constructed bylocal governments. Because improvement works must be planned and implementedin an integrated manner for large contiguous blocks of land, large investmentsare needed. The uncontrolled construction of tubewells, prompted by govern-

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ment subsidies, the low capital cost of construction and equipment, and lowelectricity charges for pumping has led to overexploitation of groundwater,excessive drawdown of the water level and land subsidence. Operation andmaintenance have been inadequate in many areas. Resources allocated by thecentral and provincial governments frequently have not been matched adequatelyby funding from the counties and townships. Measures to alleviate some ofthese problems were curtailed by cuts In the government budget for irrigationbeginning in 1980. State capital investment In irrigation has rebounded some-what since 1985 but still falls short of pre-1980 levdls. "he development ofnew water resources has not kept pace with the growth in - demand fromagriculture, industry, and urban centers.

1.9 China has achieved notable success in its support services eector,but there is also much room for improvement. A major program is under wry toupgrade and strengthen the extension services in the country, but so far, onlyabout one third of the 2,300 counties nationwide have established formal agro-technical extension centers and 20 percent of the counties have no formalextension program at all. Extension services need to move towards a client-supplier relationship, and offer a better-quality service to producers. Link-ages among research, training and extension remain weak. Seed production andagromachinery services also need improving. Quality control for seed produc-tion is inadequate and Improvements are still required in maintaining varietalpurity in some areas and in the extension and demonstration of quality seeds.Agromachinery service centers are becoming increasingly important in helpingto maintain small tractors, the type most commonly owned by farm households.There aro some 37,000 collectively operated mechanization centers providingservice to individual farmers. The centers also provide training to operatorsof medium and large machinery used for land improvement. But most of the cen-ters still function with weak management, outdated facilities, and inadequatetools and equipment.

D. Soil Conservation Efforts in China

1.10 The total land area in China subject to accelerated erosion is esti-mated to be 147 million hectares (16 percent of the total land area); an esti-mated 5 billion tons of topsoil are eroded annually. The Chinese estimatethat the losses of key nutrients from this process are nearly equivalent tothe nation's total annual fertilizer production. Historically, soil erosionproblems have been most seve-, along the upper-middle Yellow River, withroughly one-third of the nat a' s total erosion taking place along the YellowRiver alone. Despite efforts to counteract soil erosion since the 1950s,erosion problems have intensified, with an estimated 30 percent more landaffected by erosion today than In 1949. Areas of particular concern are(i) along the Yangtze River, in which erosion is estimated to have doubledsince the 1950s, and (11) in Sichuan Province, in which erosion is estimatedto have more than quadrupled since the 1950s. In south China, where soils aregenerally thinner, susceptibility to erosion-caused productivity losses ismuch higher.

E. Sectoral Obiectives and Bank Lending

1.11 The Government's long-term objectives for the agricultural sectorare to Increase production to meet the requirements created by population and

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income growth and to increase income and employment in rural areas. GivenChina's shortage of arable land, tevelopment planners have focused on the needto increase the productivity of presently cropped areas and to develop effi-ciently the few remaining areas of unutilized lands. A major objective is tostabilize per capita grain output. Per capita and total value added In thecrop subsector are to be raised primarily by increasing the yield and qualityof food, feed, orchard, and industrial crops and also by Increasing the volumeof agroprocessing. Although investment in agriculture (including irrigation)declined markedly during the initial reforms of 1980-85, due to the enhancedprofitability of nonagricultural investments to subnational levels of govern-ment and their freedom to make these investments, agricultural investment hassince rebounded at all levels due to firm national and proVincial commitmentto increasing production.

1.12 Bank Group agricultural lending to date has comprised 29 operationsamounting to $3.45 billion and has covered a wide spectrum of goographic areasand subsectors, with overall focuses on land development, irrigation anddrainage (seven projects), upgrading of agricultural support services includ-ing agricultural research, education, credit and seed Improvement (seven proj-ects), development of specialized subsectors including rubber, forestry, fruitand fisheries (eight projects), and area development (seven projects). Inrecent year., the Bank/IDA has supported a series of p-ovincial developmentprojects in which an area development approach has been applied. In theseproject., the responsibility for proposing, preparing and implementing theprojects and repaying project funds rests with provincial and lower-level gov-ernments. A major objective of several recent Bank projects has been toassist in the Government's ongoing reform process. The Rural Sector Adjust-ment Loan (Credit 1932-CHA/Loan 2967-CHA), which was approved during 1988,contributed to the articulation of the overall reform process. Several proj-ects approved since 1989, notably the National Afforestation (Credit 2145-CUA), Mid-Yangtze Agricultural Development (Credit 2172-CHA), Fourth RuralCredit (Loan 3265-CHA/Credit 2182-CHA), and Guangdong Agricultural Development(Credit 2307-CHA) projects contain significant subsectoral reform elements.

1.13 Implementation of most ongoing Bank/IDA-financed projects in theagriculture sector is on schedule. Experience in previous Bank agriculturalprojectd in China is that physical works have been completed on time or aheadof schedule. Disbursements for agricultural projects, in fact, usually out-pace those in other sectors. Notable features of all the projects are thehigh standard of project management, the active participation of farmers andthe effective collaboration of government authorities at all levels. Sevenagriculture projects have been completedt North China Plain, BeilongjiangLand Reclamation, First and Second Rural Credit, Seeds, Rubber Development,and Rural Sector Adjustment. The proje'.t completion reports for these proj-ects indicate that implementation Was generally successful, that economicrates of return reached or exceeded appraisal estimates, and that the technol-ogies used were sound and appropriate for wider application.

P. Agriculture In Sichuan

1.14 Sichuan Province, located in the southwest of China, is the mostpopulous province in China with over 108 million people, 92 million of whomare in agriculture. It is a land-locked province which shares its border with

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eight provinces--Qinghai, Gansu and Shaanxi to the north, Hubei and Hunan tothe east, Guizhou and Yunnan to the south and Xizang (Tibet) to its west. Ofthe total area of 57 million ha, 10.9 million ha (19 percent) are arable. Atotal of 6.6 million ha (12 percent) were cultivated in 1990, of which about42 percent was under irrigation. Ths province is conventionally divided intothree major natural regions. The first, the Sichuan Basin, which occupie329 percent of the total area of the province, is a rich and fertile grainbelt. The second area, the West Plateau, occupies 45 percent of the totalarea and is important for cattle and fruit production. The third area, thesouthwest region, occupying 26 percent of the province, comprises a riverbasin area suitable for grains, sugarcane and oil seed crops and a mountainousarea which supports corn, potato and cattle production. The proposed projectis located in the Chengdu Plain, a part of the Sichuan Basin, which, with only16 percent of the province's total lands produces more than 90 percent of theprovince's grain. Of over 33,000 irrigation schemes in the province, most ofwhich are small-scale, the most effective is the famous Dujiangyan irrigationsystem built over 2,200 years ago which is still operating and at presentserves over 570,000 ha.

1.15 The major grain crops in the province are rice, wheat, corn, sweetpotatoes and other tubers, and rapeseed. Sichuan, with one tenth of thenation's population to feed on one sixteenth of the land, half of which ismountainous, had to develop irrigation systems from ancient times to intensifyits grain production. In 1990, the province produced about 43 million tons ofgrain (52 percent rice, 15 percent wheat) or 10 percent of the nation's grainoutput. It is also the largest producer of rapeseed with over one fifth ofthe national output. Sichuan's production of Chinese gall, raw lacquer, waxand tung oil rank first in the country. About one third of Chinese medicinecomes from Sichuan. The province accounts for 11 percent of China's total teaproduction.

1.16 China is the world's largest producer and exporter of silk and silkproducts, with 60 percent of global production and 90 percent of total exportsin the world market. Sichuan, with a long tradition of mulberry planting andsilkworm rearing, is the largest producer of mulberry cocoon and raw silk inChina. In 1990, Sichuan Province produced over 134,000 tons and 11,000 tonsof fresh cocoon and raw silk, respectively, accounting for nearly one third ofnational and about one fifth of global production. About 30 million peoplein Sichuan are engaged In sericulture, involving about 7 million households in130 c'unties. China's share in the global market is expected to increasesince, being extremely labor intensive, mulberry production and silkworm rear-ing activities are being phased out in previously active countries such asJapan and Korea. These countries increasingly rely on imports of raw silkfrom China for further processing.

1.17 Sichuan is the largest meat producer in China with the largest num-ber of pigs and cattle. In 1990, the province had over 56 million pigs and 11million cattle with an annual output of pork and beef of more than 4 milliontons and 70 thousand tons, respectively. Pork accounts for 70 percent oftotal provincial livestock production. Poultry in Sichuan includes chickens,ducks and geese plus quail and pigeon. Livestock production also included445,000 tons of eggs, 264,000 tons of milk and 2,720 tons of wool. The prov-

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imce has about 20 million ha of pasture and grassland which are suitable forlivestock grazing.

1.18 In 1990, GVAO was Y 60 billion, which accounted for about 33 percentof the total provincial output value. The relative share of agriculture hasbeen on the decline--46 percent in 1970, 40 percent in 1980 and 33 percent in1990. Nevertheless, agriculture remains the wost important source of incomefor more than 85 percent of the population in the province. Livestock produc-tion value accounts for 35 percent of the total GVAO.

1.19 An estimated 44 percent of the area of Sichuan is subject to accel-erated erosion, with 2 million hectares of cultivated land on slopes losing anaverage of 110 tons of soil/ha/yr .equivalent to almost 1 cm of topsoil).Traditionally, most soil conservation efforts have been directed at the highproductivity, irrigated lowlands and those areas of the uplands where terrac-ing was physically possible and revegetation was economic. Recognizing theinadequacy of these traditional approaches in the uplands, the Chinese govern-ment has the stated goal within the current Five-Year Plan of consolidatingresearch and experience to formulate improved practice in soil conservationand conservation farming for steeply sloping agricultural lands Sichuan isactively involved in these efforts.

G. Rural Poverty in Sichuan

1.20 Alleviation of rural poverty remains a major development policyobjective of the Government. Poverty programs were initially directed towardsprovision of relief but later evolved into a combination of relief and produc-tion support in order to enable farmers to develop sustainable economic meansof production. Since 1986, concerted effort was made to systematically iden-tify the specific counties requiring governmental support for eradication ofrural poverty. Since then, the Government has been allocating, in addition tosubsidies and relief, special funds to promote income generation opportunitiesfor the rural poor in these areas as part of an overall development effort.Special institutional arrangements have also been made at various levels ofthe Government to design and implement policies and projects aimed at theeconomic development of poor counties. The same focus is continuing duringthe Eighth Five-Year Plan period (1991-95).

1.21 With limited agricultural land,/ Sichuan is one of the poorestprovinces in China. Farmers' annual per capita income is Y 558 ($103 equiva-lent), around 88 percent of the national rural average of Y 630 ($117).Nearly 26 percent of Sichuan's population is reported to be poor. Of 214counties in the province, 65 counties are either provincial or nationallyclassified poverty counties. The criteria used in 1986 for the national clas-sification are based on the level of per capita income (less than Y 150 in1985 prices) and the nature and significance of the areas, including remoteand backward areas and localities inhabited by minorities. The Sichuan pro-vincial criteria were targeted to areas with less than Y 200 per capitaincomes, barely equivalent to 200 kg of grain at market prices.

I/ The average rural household in Sichuan has 0.08 ha per capita of culti-vated land, about 60 percent of the national average.

1.22 The proposed project focuses on four relatively poor prefectures--Mianyang, Guangyuan and Nanchong in north zentral Sichuan, and Qianjiang pre-fecture in the southeast corner of the province. Qianjiang is one of thepoorest regions in the province with a large population of ethnic minorities.The average incomes of the project prefectures are all lower than the provin-cial average. They range from Y 201 ($37) to Y 422 ($78), which amounts toonly 32 percent and 67 percent of the national average, respectively. Theproject includes 27 counties, of which 11 are nationally classified povertycounties. In Qianjiang Prefecture, where all five counties are nationallyclassified poverty counties, of 634,000 total households, about 24 percenthave per capita income below Y 200, 42 percent have income between Y 200 andY 300, 28 percent have Y 300-500, and only 6 percent have incomes above Y 500.

H. Rationale for IDA Involvement

1.23 The proposed project is designed to address the key constraintslimiting agricultural productivity in Sichuan's poorest areas. Among them,the most pressing are the shortage and irregular availability of irrigationwater, high water and soil losses due to erosion, inadequate and weak linkagesbetween production, processing and marketing activities, and limited technicaland extension services to farmers. TDA involvement in the project would makepossible a large increase in farmers' income in these areas. Project designdraws on the Bank's extensive experience in integrated agricultural develop-ment projects in China to address major constraints to increasing agriculturalproductivity and rural incomes. IDA involvement would promote the efficientuse of limited resources, help develop technologies for soil and water conser-vation, and promote environmentally sound agricultural development. The proj-ect would improve the technical efficiency of production by extending irriga-tion canals from already completed reservoirs and main canals for relativelyquick returns to investment. The project would also reduce soil and waterlosses by planting suitable trees, grass and legumes. The income generationcomponent is designed to provide alternative income options to subsistencefarmers. Subprojects for livestock raising, mulberry and cocoon production,and tea rehabilitation would be carried out by individual households, selectedamong the poorest, with priority given to female-headed households to enablewomen to become economically active. Poverty among female-headed householdsis generally greater than among male-headed households as women with limitedassets for collateral, traditionally have less access to credit, inputs andother production means. The processing component of the project would allowthe province to improve the linkage between raw material production and pro-cessing, capture additional value added, and permit lower production costs andhigher product values by improving processing facilities and product quali-ties. Finally, the project would enhance environmentally appropriate develop-ment of agriculture through Improvement of current practices and introductionof proven environmental protection measures.

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II. THE PROJECT AREAS

A. Location

2.1 The project areas are located in 26 counties of Nanchong, Mianyangand Guangyuan Prefectures in the north and Qiaujiang Prefecture at the south-east corner of the province. The project would build irrigation works in 11counties of the three northern prefectures. The irrigsation component hasthree subprojects--Shengzhong (SP), Wudu (WP) and Yangjiaba (YP). SP liesbetween the Jialing and Fujiang rivers dividing ridge and the Jialing River infive counties and a city in Nanchong Prefecture. WP is bounded by theFujiang, Zijiang and Xihe rivers and is located in five counties in HianyangPrefecture, and YP is located in Jiange County in Guangyuan Prefecture. Twosoil conservation demonstration areas would be located in Guangyuan andQianjiang prefectures, while forestry subprojects would be located in sevencounties of Qianjiang and Guangyuan prefectures. All of the livestock sub-projects and most of the agroprocessing with the exception of one paper millwould be located in Qianjiang prefecture. Sericulture activities would bescattered in 16 counties in three of the four project prefectures. Detailedirrigation sites and project locations are shown on IBRD Maps No. 23092, 23094and 23480 and Annex 1, Table 3. Background provincial and project area sta-tistics are given in Annex 1, Table 1.

B. Climate. ToDoaraphy and Soils

2.2 Climate. The project area has a continental monsoon climate.Monthly average temperatures range from a low of about 4°C in January to ahigh of 27°C in July. Minimum temperatures may reach -10°C in more mountain-ous areas, and there are between 280 and 330 frost-free days, depending onelevation. Cloudy weather and fog occur frequently and limit sunshine hoursto between 1,200 and 1,500 hours per year. Average annual rainfall is 950-1,250 mm, of which 60-75 percent occurs in the period June to September. How-ever, rainfall distribution is extremely variable seasonally and year to year.Frequent droughts occur in spring, summer and early autumn. The averageannual evaporation in the project area ranges from 1,100 to 1,500 mm andexceeds rainfall for nine months of the year. Climatological data are pre-sented in Annex 1, Table 2.

2.3 ToDoaraDhy and Soils. The irrigation development areas are situatedin the valleys and lower terraced slopes In hilly terrain on the eastern andnortheastern border of the Sichuan central basin. The prominent slopes alongthe sides of the ridges and the steep stream channels in the command areaprovide excellent natural drainage. The average elevation is from 100 to300 m above sea level and the general slope of drainage is from north tosouth. Due to the relatively steep gradients of the river systems, there areno extensive flood plains and drainage is not a problem in these areas. Soilsare predominantly clay loams derived from red sandstone with pH 6.5 to 7.5 andwith relatively good structure, but low fertility. With adequate fertilizerand water, these soils are well suited to a wide range of crops. The projectareas focusing on soil conservation and poverty alleviation are situated inmountainous parts of Guangyuan and Qianj iaig at elevations between 600 and2,000 m. These areas are intersected by narrow steep-sided valleys with

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slopes over 50 percent. The soils are mainly acid loam (pH 5.5-6.5) with lownutrient status due to continuous leaching and much of the mountainous area ismoderately to seriously eroded.

C. Water Resources and Irrigation

2.4 Sichuan Provincial Government has proposals to expand the irrigationcapability over an area of about 280,000 ha in the north-central region of theprovince. The project area includes part of a multiphased regional irrigationdevelopment program extending to the year 2000. This region has sufferedserious crop losses from droughts which occur nearly every year at some loca-tion. In the northern part of the region, the drought periods are more preva-lent in the spring and summer, while in the south, the most dominant time fordrought is in the peak of summer. With over 60 percent of the local runoffoccurring in the period of June to September and often as a result of inten-sive storms, there is also a seasonal shortage of moisture in the early springgrowing season. It is common for the drought periods to occur in areas fortwo or three years in succession which impoverishes the farmers for a numberof following years and never allows the region to reach its production poten-tial. Without a firm water supply, the farmers have been reluctant to investin costly on-farm inputs, thus further constraining production.

2.5 Sichuan has a long history of exploitation of water resources forirrigation and within the project area there are existing irrigation supplyfacilities consisting of three medium reservoirs, 38 small reservoirs, 2,860block ponds and about 37,000 farm ponds. Many of these small storage systemsare ancient but still operational, but because of their small capacity, theycannot dependably supply timely irrigation water. In some rice-growing areaswhere water supply is particularly unreliable, farmers cultivate a single cropof rice each year, leaving the land fallow to store water in the winter beforetransplanting rice in the spring.

2.6 The Sichuan Provincial Government plans to further tap theresources of the larger regional rivers, to create large storage reservoirsand water distribution systems to provide supplemental irrigation supplies.The government has spent the last two decades investigating and planning aregional water resources system and has developed a master plan which includesthree irrigation schemes. Some of the features of this plan have already beenconstructed but additional financial assistance is required for continuationof the system.

2.7 The supplemental irrigation supplies for the three project irriga-tion schemes are supplied by tributaries to two large rivers, the Fujiang andJialing Rivers, which drain from the northwest portion of the province to thesouth and empty into the Yangtze River. The Zihe River, tributary to theJialing River, supplies the water resources for the YP and SP irrigation areaswhile the WP area would be served by diversions from the Pujiang River (seeMap IBRD 23092).

2.8 The Shengzhong Reservoir which provides 1,340 million cubic metersof storage for the ultimate full scale SP irrigation is completed and hasremained nearly full in the last few years. The YP would be served by the 24

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million cubic meters of storage upstream of the Yangjiaba Dam now under con-struction.

2.9 A recently completed diversion dam and intake canal are in positionto divert water from the large base flows of the Fujiang River. Future plansinclude a number of upstream dams for storage, hydroelectric power productionand operational regulation of the Fujiang River to provide adequate watersupply for full development of the WP.

D. Po2ulation. Farm Size and Land Use

2.10 The total population of the project area is about 8.2 million(8 percent of the province), of which 7.3 million or 89 percent are engaged inagriculture. An estimated 2 million farm households live in the project areawith an average of 4 members in each family. The average land holding isabout 0.27 ha per family. Out of total project land area of about 3.6 millionha, some 0.5 million ha are cultivated on a permanent basis to rice, wheat,corn, sweet potato, rapeseed, cotton, and other cash crops and about 0.7 mil-lion ha are commercial forest.

E. Rural Incomes and Povertv

2.11 Poor households in the rural areas have been classified into threecategoriess (a) "Wu Bao Hu" or households that are entirely dependent on gov-ernment relief, i.e., Bureau of Civil Administration and local government(BCA); (b) "Ts Kuen Hu" or very poor who "do not have enough to eat and wear"and whose incomes are less than Y 200 per capita. These households receiverelief support from BCA; and (c) "Ping Kuen Hu" or poor households who "haveenough to eat and wear" but whose incomes are less than Y 200 per capita.Many of these households are well motivated, better educated and willing toadopt new technologies. They are not eligible for grants or relief given tohouseholds in the (a) and (b) categories, but they receive assistance mostlyin the form of loans from poverty alleviation funds. The households whose percapita incomes are just above Y 200 are considered to be above the thresholdof "survival" line ("Shen Kun Xiasn") but not above the poverty line ("Pin KunXian"). The poverty line is deemed to have been crossed by a household if itachieves an income level of Y 500 per capita in 1990 prices. The projectwould directly benefit 883,000 households, two thirds of whom are living belowthe poverty line.

2.12 The prevailing poverty in many of the project areas is due to anumber of factors including poor agricultural resource base, remoteness, lackof off-farm employment opportunities, vulnerability to frequent natural disas-ters and limited infrastructure such as roads, communications, electricity andwater supply systems. Despite relief programs, lack of explicit programs todevelop these areas has aggravated the situation. The minority groups tradi-tionally living in poor areas have been mainly engaged in low-income occupa-tions, primarily subsistence agriculture. Over the years, increase in theirgrain production has also been marginal due to limited availability of inputsand lack of technical support services in these remote areas. Floods,droughts, hailatorms and severe winter weather conditions also contribute totheir poverty. The project is designed to overcome these constraints whilesupplementing ongoing government programs to alleviate poverty. It would pro-

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vide funds for specific productive activities combined with necessary techni-cal, training and marketing support. All of the project beneficiaries wouldbe individual households with particular emphasis on selecting female-headedhouseholds (about 10 percent of total) as the top priority target group.Activities selected are those already adopted by more innovative farmers inthe areas and proven to be successful. Familiarity with these activities fromneighbors' experience often creates confidence for farmers who have limitedexperience in noncrop production.

F. Present Arlicultural Development

2.13 The area proposed for irrigation development comprises a net culti-vated area of 135,200 ha (70,000 ha in SP, 61,500 ha in WP and 3,700 ha in YP)with a total cropped area (multiple cropping) of 250,000 ha, giving an overallcropping intensity of 185 percent. Rice, wheat, corn and rapeseed are themajor crops which together account for about 75 percent of the total croppedarea. Other crops grown include sweet potatoes, beans and peas, cotton, andvegetables. About 45 percent of the cropped area is rainfed and 55 percent isirrigated from small reservoirs and ponds, but limited storage provides reli-able irrigation for only about half of the irrigated area.

2.14 Most of the irrigated land is found along the river valleys and onthe terraced lower slopes, which account for about 48 percent of the projectareas. Rice is the dominant crop here, but only one rice crop a year isgrown. Farmers either grow rice in rotation with winter wheat or rapeseed, orgrow rice after a winter fallow depending on the availability of water. Athigher elevations winter sown wheat or rapeseed is followed by corn or beans,peas, sweet potatoes (often intercropped with corn), cotton, other fiber cropsor vegetables. Farmers adopt complex, but flexible cropping patterns aimed atmaximizing cropping intensity within the constraints of frequently occurringdrought and limited water storage for irrigation. Plowing and cultivation iscarried out either by hand or with draught animals (oxen or water buffalo),and hand labor using simple tools and equipment is used for all other farmingoperations. Crop husbandry standards are generally high and yields of majorcrops are in line with the provincial average but significantly lower than inadjacent areas with fully developed irrigation systems and better agriculturalsupport services.

2.15 In the soil conservation areas, the major agricultural crops arepaddy, wheat, corn and rapeseed; crop yields generally are below the provin-cial average. Present farming systems in Qianjiang and Guangyuan are based onannual cropping primarily for subsistence, with some small areas of cash crop-ping (for example, sweet potatoes or rapeseed) where possible. In 1990, about0.37 million ha were under cultivation at an average cropping intensity of2.0. Grain crops (paddy, wheat and corn) account for about 80 percent of thecropped area, with dryland farming (corn and wheat) accounting for 65 percentby area and 55 percent by production. The area planted to grains hasdecreased by 12 percent between 1980 and 1990, though total production gainsof about 25 percent have more than offset the decrease; gains can be attrib-uted to increased cropping intensity and yields. During the same period thearea planted to rapeseed increased from 19,500 ha to 61,900 ha.

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2.16 Fertilizer. Organic manures composed primarily of straw, pig manureand night soil together with plant ash and crop by-products (e.g., rapeseedcake) are widely used and supply about one third of the major nutrients farm-ers apply to the soil. However, to sustain high crop yields farmers must relyheavily on chemical fertilizer. The annual consumption of fertilizer in theproject area is about 300,000 tons of which two thirds is nitrogenous and onethird phosphate. While small amounts of compound fertilizer are puichased,there is virtually no potash fertilizer available in the province. Most fer-tilizer is low analysis and poor quality.

2.17 Seeds. Host of the project counties have seed companies establishedfor processing and distributing rice, wheat, corn and rapeseed, but mostcounty seed companies have inadequate seed processing equipment and lack suf-ficient storage facilities and transport. The project area is self-sufficientin hybrid rice seed, and hybrid corn seed requirements are met from localproduction supplemented by importation from outside the province. The areaseed companies can only supply 20 percent of the wheat seed and 40 percent ofthe rapeseed that is required annually. The shortage of replacement seed forwheat in particular has resulted in a deterioration in seed quality.

2.18 Livestock. The entire livestock component is located in QianjiangPrefecture in four state-classified poverty counties--goat projects in Youyangand Pengshui counties, a rabbit project in Shizhu county and a goose projectin Ziushan county. The livestock population in the prefecture is estimated toinclude 1.7 million pigs, 370,000 cattle, 200,000 goats, 1.8 million long-hair(angora wool) rabbits, in addition to a large number of geese and other poul-try. Most households have one or two pigs for fattening, a draft cattle orbuffalo. Crop residues are used as feed for these animals. Most ruminantsare being raised on natural pasture areas and shrubs on the mountain slopessupplemented by crop by-products. Geese and rabbits are fed with cut grassand various legumes. The livestock population In Qianjiang Prefectureincreased rapidly during the 1980s, particularly in the areas with scarcearable land where cropping options are limited. The project areas here aremountainous with limited land below 25 degrees of slope. Farmers have beencultivating on land steeper than 25 degrees with consequent soil erosion.Cropping on such steep lands is prohibited, and the farmers are in need ofalternative income sources, which the livestock component of the project isdesigned to offer, by planting steep land vith grass and providing a smallholding of livestock per household. There is also a large area of naturalgrassland which is currently underutilized. These grasslands would be suit-able for controlled grazing and cut-and-carry harvesting for raising beefcattle, sheep, and goats (for meat, wool, hides and milk), as well as forgoese and rabbits. Pigs could also utilize grassland if supplemented withsufficient grain and fodder crops.

G. Sunnort Services

2.19 Atricultural Research. The Sichuan Academy of Agricultural Sciences(SAAS) is the major agricultural research institute in the province. It has astaff of 1,100 including 700 graduates working In 14 specialized commodityinstitutes. SAAS is engaged in major breeding programs for rice, wheat, corn,sweet potato, rapeseed and cotton in cooperation with 21 smaller researchinstitutes at prefecture and county level. In addition, SAAS has a comprehen-

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sive research program covering agronomy, soil fertility, and plant protectionincluding rodent control and integrated pest management. The Mianyang andNanchong Agricultural Research Institutes are located within the project area.The M±anyang institute undertakes breeding and agronomic research on rice,wheat, corn, rapeseed and cotton with particular emphasis on wheat where ithas enjoyed considerable success in developing high yielding pest and diseaseresistant varieties. At Nanchong, emphasis is given to research on sweetpotato, peanuts and cotton, and plant breeders at the institute have been suc-cessful in developing new strains of these crops with higher yields andimproved resistance to pests and disease. These major research centers aswell as the smaller research stations at county level all suffer from a short-age of operating funds, facilities and equipment. Furthermore, information onnew promising research is not reaching the field, and more evaluation ofresearch findings under field conditions io needed in order to promote newtechnology among farmers. In most cases, formal linkages between research,education, and extension are inadequate, and systems for communicating toresearchers the problems encountered by farmers also need to be strengthened.While these needs would be partly addressed under the proposed project, IDA iscurrently preparing an Agriculture Support Services Project to address severalof the above constraints on a systemic basis.

2.20 Extension. Extension services in the project area are providedthrough the Bureau of Agriculture. There are agrotechnical centers at provin-cial, prefecturallmunicipal and county levels and agrotechnical stations atthe township level. The frontline extension worker at the village level isthe farmer technician who normally works closely with 5-10 demonstrationhouseholds in each village. %emonstration plots and farmer technicians at thevillage level and short course training are extensively used to introduce newtechnology. Each governmental level is responsible for funding salaries andrecurrent operating costs. Extension services at the county level and beloware frequently understaffed and underfunded. Some 60 percent of townshipagrotechnical stations in the province are ill-equipped. The project wouldfinance training and procurement of necessary facilities to strengthen exten-sion in the project area.

2.21 Agricultural Credit. The Agricultural Bank of China (ABC) is thelargest provider of institutional credit to the agricultural sector. Creditis provided to larger agricultural borrowers through ABC's wide network ofbranches throughout China extending to county and township levels, and tosmaller borrowers (including households) through some 59,000 Rural CreditCooperatives (RCCs) at township level and below. Sichuan ABC has its provin-cial office in Chengdu, a branch office in each of Sichuan's 29 prefecturesand 214 counties, and 1,650 offices at township level. ABC provides short andmedium-term funds for commercial activities such as agricultural productionand agroprocessing. Small farms are largely serviced through the network ofRCCs which provide credit to members and township and village enterprises(TVEs). The ABC trains RCC staff, provides credit and supervises operations.In the project areas, there are 64 ABC branches and 590 RCC offices.

H. Infrastructure

2.22 The project area, with exception of Qianjiang Prefecture, has goodtransportation links. The main railway and major interprovincial highways

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connect most of the major towns and cities. A good road network links coun-tieo, townships and villages, while the rivers through about 8,000 km of theirnavigable routes serve as an Important transport system for the movement ofbulk cargo. Qianjiang Prefecture is located at the mountainous southeasterncorner of the province. The neseast airport is about 300 km away in theneighboring prefecture, but a new airport is now under consideration inliushan county. Road connection to the rest of the province is available butdifficult. Navigation on the Yangtze and Wu Rivers provides easier transpor-tation. Remoteness of Qianjiang Prefecture from the rest of the province hasbeen one of the main reasons for the prefecture's relatively low level ofdevelopment. On the other hand, road systems in neighboring counties ofNunan, Hubei and Guizhou provinces are relatively well developed and serve asthe main external links for the people and goods of Qianjiang.

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III. THE PROJECT

A. Proiect Cblectives

3.1 The project's main objectives are:

(a) To increase productivity of existing crops, especially rice, byincreasing the land under irrigation and by providing a more relia.ble water supply for drought protection;

(b) To provide a complementary package of integrated agriculturalinputs, support services, adaptive research, training and technicalassistance;

(c) To develop operation and maintenance plans and establish policiesfor the proposed irrigation systems, including the collecting ofwater charges for full recovery of operation and maintenance costi

(d) To expand soil conservation measures and reduce soil and waterlosses to reduce long-term siltation of major rivers, maintain soilfertility, and improve productivity of already eroded areas;

(e) To expand agroprocessing activities utilizing locally available rawmaterials; and

(f) To increase farmers' incomes in selected poor and remote areas wherethey are less than 50 percent of the national average, with particu-lar emphasis on helping poor women.

3.2 Snecial EmDhasis on Alleviating Poverty and Assisting Women. Theproposed project includes some of the poorest areas of the province. Of 26counties included in the project, 11 are nationally classified poverty coun-ties including 5 in Qianjiang prefecture, with a large population of ethnicminorities. The project would help local farmers out of absolute poverty withspecial emphasis on helping poor women in some of the poorest and most remoteareas of China. While poverty is widespread among the general population,poverty among women is more severe. Female-headed households constitute about10 percent of the total households in the project area. These single-incomehouseholds have limited assets for collateral, hence less access to credit,inputs and other production means, and are generally poorer than male-headedhouseholds. The project would target these female-headed households as prior-ity beneficiaries and would support establishment of smallholding livestock,sericulture, and hand-knitted clothing production activities. Groups of womenwould organize their activities and coordinate sales and marketing efforts.These activities are far less physically demanding than heavy field cultiva-tion work and would yield higher financial returns. Extension services wouldfocus on training of women farmers, especially in sericulture and rabbit rais-ing. Female extension agents would be an integral part of the regular exten-sion staff, and training programs to be supported under the project wouldemphasize training of female extension agents and technicians, who in turn,would train more female workers. NGOs, e.g., the All China Women's Federation(ACWF), would participate in these endeavors to organize women's groups as

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well as using media and female village leaders to promote women's participa-tion in profitable activities.

B. Project Description

3.3 The proposed project has the following components:

(a) Irrigation. Design, construction and initiation of operations ofthe irrigation conveyance systems for the intermediate developmentphases of three irrigation schemes; the Shengzhong Project (SP), theWudu Project (WP) and the Yangjiaba Project (YP) and provision ofagricultural support services within the areas served.

(b) Soil Conservation. Establishment of two soil conservation demon-stration areas and planting paulownia, Chinese toon, other fast-growing trees, gall, Chinese alpine rush, and medicinal plants.

(c) Income Generation. Production of mulberry and silk cocoon withexpansion of supporting services, rehabilitation of tea gardens andestablishment of livestock production bases for goat, geese andrabbit combined with planting pastures.

(d) Processing. Rehabilitation and expansion of two paper mills andestablishment of a rabbit hair spinning mill as well as gallnut,goat, and geese processing plants.

C. Detailed Features

Irrisation Component

3.4 The proposed project would provide supplemental irrigation toincrease crop production by constructing irrigation water conveyance facili-ties--arterial canals, branch canals and trunk and farm level ditches--whichwould provide additional water to a total net command area of 135,200 ha. Theproject would support the establishment of the operation and maintenance orga-nization and provision of associated physical plant and equipment.

3.5 The extreme variability of the rainfall and the localized nature ofexisting irrigation features in the project area are the primary constraintsto agricultural production. By bringing reliable external water supplies fromnearby sources and distributing them within the region, the damages previouslysuffered due to shortages of rainfall and irrigation water would be minimized.The firmer irrigation supply would also allow crop intensification in areaswhere lands are fallowed in the winter season to accumulate soil moisture forspring and summer cropping. The civil works in each subproject would consistof a combination of main, branch, secondary and tertiary conveyance systemswith associated hydraulic control structures. The conveyance system would bemade up of lined canals, tunnels, aqueducts and inverted siphons. In someinstances in-line pump stations would be required as part of the main systemand in other locations small pumps would bring service to areas located abovethe canals. These systems would also be capable of delivering and replenish-ing supplies to existing ponds and small reservoirs within the project area.

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The good natural drainage of the region would allow return flows to be reusedin downelope portions of the service area. No special drainage works arerequired other than assuring that natural side streams can safely pass underor over the canals.

3.6 The Shengzhong Project (SP) would be expanded to bring supplementalirrigation to approximately 70,000 ha. The Shengzhong Reservoir and headreaches of the main canal serving about 18,300 ha have already been con-structed and are in operation. Completion of small secondary canals in theupstream portion of the service areas would allow expansion of the irrigatedarea early in the project implementation period. The fully completed SP isplanned to serve approximately 138,700 ha.

3.7 The construction of the Wudu Project (WP) has also been started withthe recent completion of the diversion dam, initial stretch of the main canaland a hydropower station which returns a portion of the diverted flow back tothe river. The main canal and irrigation system to be constructed under theproject would irrigate 61,500 ha. Ultimately, the WP would bring supplementalirrigation to approximately 136,800 ha.

3.8 The Yangjiaba Project (YP) would consist of the conveyance and dis-tribution system to serve 3,700 ha. The completion of these works would coin-cide with the completion of the upstream storage dam and would allow deliveryof water in approximately 2.5 years from start of the project. The projectalso includes a 25 km pipeline from the Yangjiaba Reservoir to Jiange city fordelivery of a reliable municipal water supply.

3.9 The irrigation supplies for the SP and YP depend on dams and storagereservoirs not included in the proposed project. Shengzhong dam, completed in1984, is fully filled and operational. The 53 meter high Yangjiaba dam isunder construction. Both dams have undergone a dam safety review by an inde-pendent international panel. Wudu has a diversion weir with low head and doesnot involve a dam or storage reservoir. In September, 1991, a group of fiveChinese and foreign experts visited the sites to review designs, constructionstandard, safety systems and geological and hydrological data. The panel'sassessment was satisfactory. An assurance was obtained that Sichuan wouldcarrv out maintenance and geriodic safety insDections of existing dams underarraniements satisfactorv to IDA. The main findings and recommendations ofthe panel are summarized in Annex 8.1/

3.10 The project would include procurement of light construction equip-ment to support the force account construction units at the county and town-ship level, equipment for operation and maintenance of the three irrigationsubprojects. The O&M equipment would include transport vehicles, materialhandling equipment, communication equipment and basic computer systems. Table3.1 below summarizes the various civil works to be constructed under the proj-ect for the three irrigation subprojects.

3.11 Aaricultural SuDgortina Services. The proposed project wouldstrengthen agricultural supporting services provided to farmers in the 12

,l A full Dam Safety Review Panel report is available in the project file.

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Table 3.1i IRRIGATION COMPONENTs SUMMARY OF WORKS

Capacity AqueductsCategory of range in Totals Canals Tunnels and siphons

conveyance system mlosec (km) (kA) (km) (km)

SHENOZHONGBranch Arterial Canal 6.4 to 8.6 108.7 85.0 21.4 2.3Branch Canal 3.5 to 4.1 28.6 22.9 5.7 0.0Subbranch Canal 1.9 to 2.6 65.5 46.3 17.2 2.5Trunk Ditch 0.5 TO 1.8 284.7 233.7 43.9 7.1Farm Ditch 1,327.2 1,126.7 190.0 11.5Subfarm Ditch 1,298.0 1,298.0 0.0 0.0

1WUDUGeneral Arterial Canal 60 12.2 10.2 1.1 0.9Arterial Canal 27.3 69.6 57.5 8.8 3.3Branch Arterial Canal 9.5 to 10.5 40.0 34.8 3.4 1.8Branch Canal 3.8 to 4.9 75.8 65.3 8.7 1.8Subbranch Canal 1.8 to 4.2 103.4 92.4 2.5 8.5Trunk Ditch 0.3 to 1.8 397.8 371.6 20.2 6.0Farm Ditch 1,163.1 1,110.1 44.5 8.5Subfarm Ditch 713.7 711.9 0.0 1.8

YANGJIASubbranch Canal 2.9 15.0 12.8 2.2 0.0Trunk Ditch 0.9 to 1.4 36.0 34.2 1.3 0.5Farm Ditch 108.0 108.0 0.0 0.0Subfarm Ditch 72.0 72.0 0.0 0.0Water Supply Pipe 25.0 0.0 0.0 25.0

irrigation subproject counties to complement the improvement in irrigationfacilities. Agricultural support would cover extension services, research,seeds, fertilizer and pesticides.

(a) Extension. The project would upgrade facilities at 1 County Agro-technical Extension Center (CATEC) and 225 Township AgrotechnicalExtension Stations (TATESs), by financing construction of offices,living accommodation (TATESs only), stores and classrooms. Theproject would also finance audiovisual, laboratory, office and pestcontrol equipment for all 12 CATECs and 225 TATESs in the projectarea to upgrade their capacity for water, soil and plant analysis,adaptive research, extension, and technician and farmer training.In addition, each CATEC would be provided with a pickup truck.

(b) Seeds. The project would strengthen the capacity of county seedcompanies in the project area to produce, process and market goodquality seeds. Funds would bo provided for construction of addi-tional seed stores, including cold storage, processing areas and

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seed testing laboratories totaling 5,780 en. The project wouldfinance seed grading, drying and testing equipment and vehicles,including 5 pickup trucks and 10 trucks (5-ton) for transportingseed.

(c) Fertilizers and Pesticides. The project would provide for procure-ment of 28,000 tons of potassium sulfate sufficient to meet theestimated incremental demand for potassium fertilizer at full devel-opment. About 240 tons of pesticides would be provided mainly forcontrol of insect posts and fungal diseases of rice, wheat, corn,rapeseed and cotton. An assurance was obtained that fertilizers andnestleides provided under the vrolect would be sold to farmers atnrices which cover the costs of procurement. trans2ortation and dis-tribution. Sichuan Provincial Government would establish and main-tain a revolving fund with proceeds from the sale of inputs (par..4.12).

Soil Conservation Comnonent

3.12 Soil Conservation Demonstration Areas. This component includes twodemonstration areas--one in Qianjiang County, Qianjiang prefecture and theother in Chaotian County, Guangyuan prefecture. Both areas lie in hilly tomountainous terrain and are representative (physically and in land use types)of the majority of the rainfed, upland agricultural areas in the project'sregions. Total project area is 199 km', of which almost 85 percent is classi-fied as "Erosion Area"; a combination of biological and structural interven-tions would be used to treat the erosion areas in their entirety. The focusof the demonstrations would be on the verification and dissemination of landuse practices and technologies which provide economic alternatives to presentnonsustainable annual cropping practices. At completion it is expected thatthe demonstrations would provide an expanded menu of technological options forland management in the uplands and a trained cadre of technical staff to dis-seminate the technologies and approaches to other priority areas of the prov-ince.

3.13 The project would provide for procurement of tools, constructionmaterials and off-farm labor to construct the works summarized in Table 3.2.Additionally, IDA would finance procurement of inputs for nurseries and estab-lishing forestry and Lorticultural species (seed, seedlings, fertilizers andpesticides); adaptive trials/demonstrations for forestry, pasture and hill-slope conservation farming; training of technical extension personnel andfarmers; a monitoring system to estimate project impacts on surface runoff andsediment loads; and technical assistance for design/supervision of trials,demonstrations and training, including construction materials for trainingcenters and experiment stations, office, laboratory, training, research andsurvey equipment, research and trial expenses and domestic and foreign train-ing and study tours. The project would establish a revolving fund from loanrepayment for soil conservation activities to expand the effort to wider areas(par.. 4.12).

3.14 Other Forestry Subnroiects. The project would include (a) 8,700 haof high-quality timber trees (Paulownia and Chinese toon); (b) 6,700 ha offast-growing/high yielding plantations to Chinese fir, cryptomeria, pine

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(masson, slash and loblolly) and alder treeqs (c) 6,000 ha of Sumac (two spe-cies) for gallnut production; (d) 2,677 ha of Philodendron and Eucommia forprocessing of bark into traditional herbal medicines; and (e) 1,800 ha ofChinese alpine rush (Eulalloplsu blnats) as a raw material for paper-making.These species are selected due to their marketability, suitability for theclimatic and ecological conditions, and the technical experience available inthe project area. IDA credit would finance seedling., fertilizer, some off-farm labor, and tools and equipment. The project would also provide training,agricultural support services, nurserying, marketing support and tending forthe first three years. All plantings would be done on the contour. Vetiverwould be tested for its ability to survive over winter (at higher elevationsaround 1,300 meters the minimum temperatures drop below freezing point) and iffeasible, Vetiver grass contour barriers would be established. An assurancewas obtained that all plantations would conform to environmental guidelinessatisfactory to IDA. Such guidelines were established by the Ministry ofForestry (UFO) under the National Afforestation Project (Cr. 2145-CHA).

Table 3.2: SOIL CONSERVATION DEMONSTRATIONS: SUMMARY OF WORKS

AreaActivity (ha)

Biological TreatmentsTimber Plantings 2,180(e.g., pine, china fir, toon, cryptomeria)

Fuelwood Plantings 4,610(e.g., oak, locust, alder, coriaria)

Tree Crops 2,830(e.g., walnut, tung, mulberry, mandarin)

Land Closure 4,000(for fodder and fuelwood production)

Pasture 2,210Conservation Farming 1,450(e.g., vetiver hedgerows, contour cultivationcover cropping, intercropping)

Structural TreatmentsTerracing 580Other 18,860 sites

(e.g., check dams, water ponds, riverbankprotection dike, silt traps, contour andinfiltration ditches)

Income Generation ComDonent

3.15 The income generation component is targeted at extremely poor sub-sistence farmers with presently limited options to expand Incomes. SichuanProvince is relatively poor and the project areas include some of the poorestareas in the province. While other project components, i.e., irrigation and

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soil conservation, would also help poor farmers by Increasing crop yields ingeneral, this component is designed to help individual farmers who have lim-ited cultivated land and presently live at subsistence level. Intensificationof crop cultivation alone would not alleviate poverty in the long term, andthus viable alternative Income generating activities are needed to achievesustainable poverty alleviation. The national and provincial governments havedesignated poor counties where special assistance is provided. The projectwould supplement these efforts by supporting commercially viable activitiesdesigned to exploit local comparative advantages while providing necessarysupporting services in training, technical assistance, and expansion of mar-keting channels and means. The project would establish a revolving fund forpoverty alleviation in Qianjiang from loan repayments of the income generationcomponent which would be used for similar activities (para. 4.12).

3.16 Mulberry and Cocoon Production. Investment in mulberry planting andsilk cocoon production would promote income-generating activities of individ-ual households. The project would directly help 115,000 households in 16counties--3 counties in Guangyuan, 10 in Nanchong and 3 in Qianjiang prefec-tures. Table 3.3 summarizes the component's work.

Table 3.3: SERICULTURE: SUMMARY OF WORKS

Component Guangyuan Nanchong Qianjiang Total

Sericulture-individualhouseholds 55,000 40,000 20,000 115,000

Silkworm Egg Breedintg Stations - 6 1 7Incubation Rooms 4 2 3 9Cooperative Rearing Rooms 1,000 1,000 450 2,450Tech/Serv Stations 49 20 30 99Research/Training Centers 1 6 1 8Cocoon Collection Centers 9 - 9 18

3.17 Development of sericulture would involve each household planting 500mulberry trees on about 0.07 ha, and constructing a silkworm rearing room(12 m' each); equipment would also be provided (40 rearing trays, 80 rearingnets and 6 plastic cocooning frames each). Total area of mulberry plantingwould be 7,600 ha. Two silkworm egg production stations (annual capacity of60,000 boxes each) would be established and five would be expanded (incremen-tal capacity of 60,000 boxes each). Total annual incremental egg productioncapacity would be 420,000 boxes. IDA credit would finance quality plantingmaterials for mulberry and tools and equipment for silkworm rearing to improveproductivity and quality, and vehicles. Uniform and improved sericulturestandards would be adopted in all project areas.

3.18 In addition, the project would provide supporting facilities--incubators, cooperative rearing rooms and cocoon collection centers--andstrengthen training and adaptive research. Cooperative rearing rooms would bemanaged by 2,450 households specially selected to cooperatively rear youngsilkworms during the early larval period of just-hatched to second day of the

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third instar (about 11-14 days). Each cooperative rearing household wouldreceive 200 grafted saplings of a special mulberry variety for young silkwormto increase yields. The silkworms would then be distributed to 40 to 60households for commercial rearing. Cocoon production is sensitive to level oftechnology and workers' skill. The project would emphasize expansion andestablishment of training facilities to disseminate the existing science andtechnology to farmers. Technical service stations would provide extension andtraining services to farmers, while providing inputs for mulberry and cocoonproduction. Technical staff would provide technical assistance at the fieldlevel and manage disinfection of rearing rooms and cooperative rearing. Theproposed research and training center would provide linkage between adaptiveresearch and field operation, train farmers and extension workers, and alsofunction as a pest and disease prediction center. Eighteen new cocoon collec-tion centers with a total capacity of 60-80 tons to enhance the distributionnetwork, and adequate drying facilities to minimize losses and retain highproduct quality, would be established.

3.19 There is virtually no minimum limit of economic scale in cocoonproduction. An average silkworm rearing household in the project areas con-sists of 4-5 members with about 0.07 ha of cultivated land per person. Afamily may start cocoon production with as little as one fifth of a box ofsilkworm eggs, with about 100 border-planted mulberry trees. Within threeweeks, about 5-6 kg of cocoons could be harvested with current market value ofY 50. With Iftited cultivated land, cocoon production is one of the mostviable labor-intensive activities, as mulberry trees can be planted alongfield borders. Currently, 30-40 percent of border land of the project areasis unused and is available for mulberry planting.

3.20 Livestock. The four livestock subprojects are located in four coun-ties of Qianjiang Prefecture. This component would establish integrated live-stock production bases to benefit 36,100 individual poverty households byutilizing currently underused pasture resources. To avoid excessive pressureon the natural grassland, the project would also plant grass for grazing orcut and carry feeding. IDA credit would finance procurement of breeding andcommercial stock, seeds, fertilizer, small equipment and tools and vehicles.The project would also provide funds for training and grassland monitoringequipment (Table 3.4).

3.21 Each goat-raising household would get on average 8 goats, 5 adultand 2 young females and 1 adult male, 20 m2 of shed and about 0.27 ha ofgrassland. Each household would retain some breeding female goats to build upto a maximum of 10 females and an estimated output of 16 slaughtdr goats and1 cull adult female per year. Goat breeding farms would start with 85 femaleand 15 male pure line goats which would supply 180 progeny for sale each year;artificial insemination services would also be supplied. A feedmill of 3,000ton annual capacity would be established in Youyang county to provide supple-mentary feed during winter seasons. Two training centers would be establishedto further strengthen technical extension and training services, and 5 veteri-nary stations would provide preventive and treatment services to the live-stock.

3.22 Each goose-raising household would start with 50 geese and 0.07 haof grassland, and would eventually have an annual production of 50 geese for

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Table 3.4: LIVESTOCK: SUMMARY OF WORKS

Goat- Goat- Goose- Rabbit-Item Unit Youyang Pongshui Xiushan Shizhu Total

Households no 15,000 6,100 10,000 5,000 36,100Breoding households no - - 1,250 500 1,750Grassland ha 4,000 1,627 1,000 367 6,994Training center no 1 1 1 1 4Vet. Station no 5 5 20 20 50Feedmill t/yr 3,000 - 2,000 2,000 7,000Feed stations no 5 - - - 5

sale. Specialized breeding households would start with 20 breeding geese and0.13 ha of grassland, with an estimated annual output of 1,200 fertile eggsper household. About 20 households would specialize in grassmeal productionand operation of goose hatcheries with annual capacity of 400 tpa of grassmealand 36,000 goolings per household. One central goose breeding farm would beexpanded from the present 1,000 birds capacity to produce 2,500 female and 500male breeders per year to supply to the goose-breeding households. The proj-ect would also establish a 2,000 tpa capacity feedmill to provide supplemen-tary feed and improve a training center and 20 veterinary stations for betterservices to households.

3.23 Each rabbit-raising household would be provided with 10 rabbits and50 hutches which would expand to about 50 rabbits and 50 hutches by year 3.Each household would also plant 0.07 ha of grassland for feed. Five hundredspecialized households would be established for breeding rabbits. Thesehouseholds would be chosen from experienced rabbit-raising households with aminimum of 50 rabbits. Each would start with 20 rabbits and 40 hutches and0.07 ha of grassland. These households would provide rabbits to commercialrabbit-raising households. The project would also expand an existing centralrabbit breeding station which would produce 1,000 pure bred rabbits with anucleus group and a grandparent group to supply to the specialized breedinghouseholds. The project would also upgrade a feedmill by providing improvedgrinding, mixing and feed analysis equipment. A trainins center and 20 vete-rinary stations would also be improved.

3.24 The project would introduce a comprehensive grassland monitoringsystem (GHS) to prevent overgrazing and overexploitation of natural grasslandwhile maintaining sustainable stocking rates of livestock to tap maximum bene-fits from the currently underutilized natural resources. A similar system hasbeen tested in the Rural Credit IV project in Inner Mongolia with successfulresults. The GMS would be developed based on already existing regulations ongrassland management in Sichuan Province with some modification to fit localconditions. The system would facilitate continuous and systematic monitoringof grassland utilization and take timely countermeasures as necessary. Aassurance was obtained that Sichuan would establish a OHS for Oianiiant Pre-fecture satisfactory to IDA by June 30, 1993.

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3.25 Tea Rehabilitation. About 2,333 ha of low-yielding tea gardenswould be rehabilitated by removing nonproductive bushes, replanting and gap-filling with improved varieties and increasing plant densitiee. The projectwould involve 3,500 tea production householdo living at the subsistence level.Training of farmers in Improved tea garden management and In primary proces-sing to retain quality would be emphasized. The project would also Includeagricultural support services, rehabilitation of tea terraces and drainageways, a vetiver grass demonstration component and marketing support and infra-structure. IDA funds would be used for procurement of construction material,seedlings, fertilizer, pesticides, some off-farm labor and training for tech-nicians and farmers.

Aaronrocessein Comoonent

3.26 The project would include six agro-industry subprojects, not includ-ing the small feed mills under the livestock component. Five of the subproj-ects are located in Qianjiang prefecture which would be directly integratedwith raw materials supply production bases, l.e., gost, rabbit hair and geese,and utilize the output of farmers assisted by the project. The subprojectswould provide buildings, equipment, wastewater and effluent treatment, vehi-cles, training and technical assistance to upgrade management skills. Theproject would also provide incremental working capital for each agroprocessingsubproject. All agroprocessing subprojects are designed to produce value-added benefits and increase employment for the project areas. An assurancewas obtained that the relevan-t 2refectural Environmental Prgotction Bureau(EPB) under the mtuidance of the Sichuan 2rovincial EPB would anorove finaldeeimns of effluent treatment facilities of each arcorocessine enteroriseoprior to beitinninat construction. and theseg egteriprisee would, under EPB super-vision. imolement and maintain effluent monitorint and treatment systemsaccording to the final desians approved by the 2rovincial EPB. More detailsof each agroprocessing subproject are provided in Annex 1.

3.27 Most agroprocessing plants are state-owned in China with the excep-tion of collectively or privately owned small-scale township and villageenterprises (Tm s). In this environment, the project's objective is to ensurethat all agroprocessing plants included in the project would operate as inde-pendent and commercial entities and would be viable. None of the products isgovernment controlled, and all would be traded at free market prices. Eachplant would have an Independent account with responsibility for their ownprofits and losses and all have registered charters. An assurance wasobtained that Sichuan would ensure that for the two paper mills and the rabbitbair DrocessinR 2lant. each enterorise would imolement an enterDrise reformolan satisfactory to IDA. which would enable the enterorises to be managedindeoendentl_ from the local suoervisory bureau. under an enterprise manaterselected by an enterDrise board of directors.

3.28 Paper and Pulp Mills. The project would expand paper-making capa-city of two existing paper and pulp mills by 10,200 tpa each. Pengshui papermill would utilize kenaf as raw material while the Mianyang mill would usewheat straw and kenaf. These plants are considered to be medium scale whichallows for economic installation of sods recovery systems. With expansion ofthese two mills, soda recovery system would be Installed for both new andexisting plants. Old plants have been operating without appropriate waste

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treatment or soda recovery systems. In addition, Sichuan provincial govern-ment has agreed to close down two small paper mills currently operating with-out any wastewater treatment--one in Gaugu with capacity of 300 tpa andanother one in Yushan with 500 tpa in Pengshui County. Purthermore, Mianyangbleached paper mill located in the center of the city would be closed beforeDecember 31, 1994 when the new mill becomes operational and the recycledpaperboard-making unit would be closed before December 31, 1997. This "mini"restructuring of the local paper industry would not only increase paper pro-duction but also achieve better environmental control of a highly pollutingindustry. An assurance was obtained that Sichuan would close these threegaper mills in accordance with timing and Procedures acceptable to IDA.

3.29 Livestock Processing. The component includes (a) establishment ofa geese processing plant (processing capacity of 800,000 birds per annum) toproduce processed meat, feather and goose down; (b) establishment of a rabbithair spinning mill (400 tpa rabbit hair to produce 254 tpa of angora woolblended yarns); and (c) rehabilitation and expansion of an existing goat andcattle processing plant (60,000 goats and 7,000 cattle per annum). The proj-ect would substantially improve low levels of hygiene and product quality.All the livestock processing plants are designed to provide marketing outletsfor individual households in the areas. The rabbit hair processing plant inShishu city would also establish a knitting plant with 20 semimanual knittingmachines to increase value added and also to create employment for women.Individual households, particularly women in the area, would participate inrabbit hair preselection and grading which needs to be done manually and alsoparticipate on a voluntary basis in hand-knitting of sweaters and other gar-ments. About 100 individual households would receive semiautomatic knittingmachines under the project. Most of the angora wool would be geared towardsexport markets. The exact blend of angora wool to wool, synthetic fibers andsilk would depend on export market demand.

3.30 Gallnut Processine. The project would upgrade and expand an exist-ing gallnut processing plant. The proposal is to produce annually 500 tons oftannic acids. Gallnuts would be procured from farmers who are already produc-ing gallnuts as well as those who would plant gall trees and produce gall-nuts 2/ under a project-supported component. Tannic acid is often used totan leathers. With increasing environmental concern worldwide, natural-substance based tannic acid is again gaining popularity compared to synthe-tics. The project would include an adequate wastewater treatment facility andalso take precautionary measures in working areas to prevent potential inhala-tion of intermediary powder by workers.

Training. Research and Technical Assistance

3.31 Research. Under the irrigation component, the project would supportadaptive research, field trials and technical workshops aimed at strengtheninglinkages between research and extension and increasing and sustaining produc-

21 Gallnuts are produced by introducing specific aphid species to parasitizeSumac trees. This induces swellings on the leaves of the Sumac (i.e.,gallnuts), which are harvested for extraction of tannin.

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tion under fully irrigated conditions. Research topics would include croprotation and cultivation techniques for paddy and nonpaddy land with emphasison high yielding varieties of rice, wheat, corn and rapeseed; soil fertilityimprovement iucluding optimal economic fertilizer application rates; and pestand disease control including integrated pest management (IPM) for rice,wheat, corn, rapeseed and cotton. Research programs would be under the direc-tion of the Mianyang and Nanchong Agriculture .esearch Institutes in coopera-tion with the Plant Protection Station of the Sichuan Provincial Departmentof Agriculture and CATEC staff. Technical workshops for CATEC staff would beconducted at the two research institutes twice a year. Further details onresearch are listed in Annex 1, Table 6.2.

3.32 Other research programs include: (a) for soil conservation, trial ofnew tree and grass species, experiments with new forestry technologies, vege-tative barriers, monitoring of soil conservation treatment impact, and grass-land improvement; (b) for sericulture, genetic improvement of silkworms,disease and pest control; (c) for livestock, breeding and disease control,optimal feed formulation, and improvement in grassland monitoring and feedingpractices. Full details of specific research topics to be supported under theproject are in Annex 1, Table 6.2. In general, the research activities wouldsupport the province's broader research goals by augmenting ongoing efforts.Sichuan would establish a Technical Advisory Group (TAG), headed by a memberof the Project Management Office (PMO) and consisting of representatives fromthe provincial level bureaus of Forestry, Agriculture, Animal Husbandry, Soiland Water Conservancy, and relevant research institutes to provide intersec-toral technical advice and also to review research proposals. The M.O wouldreview and approve proposals in consultation with TAG and manage the researchfunds. IDA funds would finance technical services, materials and eqLipmentfor research.

3.33 The project would provide training for (a) 1,065 persons in hydrolo-gic analysis, irrigation system design, canal O&M, and irrigation managementand construction supervision; (b) 1,400 technicians in all project components;and (c) over 9,400 farmer technicians and 320,000 farmers in production andbetter input utilization, including training in integrated pest management andfertilizer application for about 1,000 technicians, 4,500 farmer techniciansand 200,000 farmers. Duration of training would vary from three days for ashort course for farmers to a year for a long-term course at university. Thetotal trainees of the project would be over 330,000 persons with total train-ing exceeding 1.7 million person-days. In addition, about 430 persons wouldparticipate in domestic study tours for on-site training and 45 persons wouldtour overseas for management, technical and marketing training. The IDAcredit would finance per diem tr"aining expenses for trainees. The projectwould also provide funds for additional classrooms, dormitories and audiovi-sual equipment. The project would also provide 210 person-days equivalent offoreign technical assistance for the agroprocessing component in designing,engineering, plant layout, initial start-up and marketing. Consultants wouldbe selected under terms of reference agreed with IDA and in accordance withthe Guidelines for the Use of Consultants by World Bank Borrowers and by theWorld Bank as Executing Agency. A summary of training, study tours and tech-nical assistance is in Annex 1, Table 6.1. Assurances wore obtained thatla) Sichuan would ensure that all trainint. including study tours. andresearch under tb.e iroject would be carried out in accordance with trainint

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and research 2rograms agreed with IDA and (b) ths PM0 would provide an annualJlan to IDA for ap,roval by November 1. each year which would include a listof uXroosed research. training and study tours for the commna yoar.

3.34 Training would primarily be conducted in Sichuan which has facili-ties with the capacity to handle most of the proposed training program. How-ever, some strengthening of agricultural training facilities would be providedunder the project. Furthermore, the Sichuan chapter of ACWF which is alreadyactive in training and fighting illiteracy among women, would play a majorrole in organizing and training women farmers and entrepreneurs in the projectarea. To overcome a traditional bias against women in receiving training, theproject would pay special emphasis to training women; a minimum of 50 percentof farmers and 20 percent of technicians to be trained under the project wouldbe women (para. 6.4).

D. Status of Preparation

3.35 The project is at an advanced stage of preparation. Preliminarydesign work on the three irrigation subprojects has been completed and fieldsurveys of canal and tunnel alignments have been made. Detailed designs forthe SP are 90 percent complete. For the WP and YP, designs with drawingssufficient to cover approximately two years construction have been completed.Feasibility studies have been prepared for all subprojects, and designs aregenerally at an advanced stage. For agroprocessing, detailed plant and con-struction drawings would be produced and reviewed by the provincial Bureau ofLight Industry and the EPB. Design institutes already involved in design andpreparation of the feasibility studies would also write the technical specifi-cations for the tendering agencies, and would discuss them with IDA duringsupervision. Preliminary designs for livestock facilities, e.g., sheds,breeding farms, and training and support service facilities, have been com-pleted and the selection criteria for beneficiary households finalized. Siteselection and preliminary design, and preparation of the technical assistanceprogram have been completed for the soil conservation, forestry and sericul-ture components, with relevant technical bureaus and the Sichuan ProvincialSilk Corporation as the main coordinators.

E. Imulementation Schedule

3.36 The project would be implemented over a period of six years begin-ning mid-1992 with completion in December 1998. A detailed implementationschedule for all components is given in Chart 1. For the irrigation compo-nent, the civil works of the three irrigation subprojects are scheduled to becompleted and go into operation within a six-year period. For each irrigationsystem, construction would proceed in a downstream direction with concurrentwork on main canals and smaller canals in the upper reaches of the subprojectareas. The construction sequencing has been carefully selected to bring landsinto the service area as early as possible and to maintain a rather uniformrate of additional lands being served each year. Some areas would benefitfrom the supplemental supplies as early as the first year.

3.37 In all three irrigation areas, there are civil works under activeconstruction which are vital for providing water to the project-financed com-

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ponents. This ongoing construction is locally funded by Sichuan, respectiveprefectural and county governments. Sichuan would ensure adequate funding,high-quality control and timely completion of these work. so as not to impedewater delivery to the downstream canals financed under the project.

3.38 The soil conservation component would be implemented over five yearswith the exception of the medicinal plants, alpine rush and tea rehabilitationwhich would be completed in three to four years. Design and preparation workfor all subprojects should be sufficiently complete for start-up by July 1,1992. The livestock and sericulture subprojects would be implemented overthree years while establishment of supporting and training services for seri-culture would be phased over four years. Construction and commissioning ofall processing plants would be implemented over three years, and timing of thethree livestock processing plants would be coordinated with implementation ofthe livestock production subprojects. The proposed schedule is feasible andconservative.

P. Cost Estimates

3.39 The total project cost is estimated at $287.6 million with a foreignexchange component of $85.5 million, for which an IDA credit of $147 millionis proposed. These costs include no significant tax element with the excep-tion of a construction tax for selected civil works; imported materials orequipment are exempt from duties for Bank projects. Cost estimates are basedon detailed preliminary designs and unit prices currently prevailing for simi-lar construction work and materials in the province along with machinery andequipment price lists from local and international sources. Physical contin-gencies are 10 percent for irrigation system civil works, 5 percent for equip-ment, materials and machinery. Price contingencies for both foreign and localcosts, when expressed in US dollars, are based on annual international priceescalation rates for all goods and services of 3.9 percent for 1991-2000, andwhen expressed in Yuan are based on price escalation rates of 6 percent for1992, 5 percent for 1993-98. Estimated costs are summarized in Table 3.5below and detailed in Annex 2.

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Table 3.5s PROJECT COST SUDMARY

Local Foreign Total Local Foreign Total 1 Foreign S Base----- C( mllllon) ----- .--- S mllio) ---- ocbhange cost

IrrinationSP 228.7 77.2 305.9 42.5 14.3 56.9 25 24VP 370.7 136.1 506.8 68.9 25.3 94.2 27 39YP 20.5 5.5 26.0 3.8 1.0 4.8 i5 2Agric. Support 22.2 35.4 57.7 4.1 6.6 10.7 61 4

Boll ConservatIonSoil Dgmoantration 21.2 5.4 26.6 3.9 1.0 4.9 20 2Forestry 46.4 9.8 56.2 8.6 1.8 10.4 18 4

Income GeneratlonSericulture 62.5 19.9 82.4 11.6 3.7 15.3 24 6Tea Rehab. 3.9 1.7 5.6 0.7 0.3 1.0 30 0Livestock 23.8 7.0 30.7 4.4 1.3 5.7 23 2

Aarourocgesina 94.6 106.9 201.5 17.6 19.9 37.5 53 16

Total Base Cost 894.5 404.9 1.299.4 166.3 S.2 24.5J 31 1

physical Contingencies 65.5 33.0 98.5 12.2 6.1 18.3 33 8Price Contingecies 127.3 22.3 149.6 23.7 4.1 27.8 15 12

Total Pro1ect Cost 1.087.3 460.l 1.547.4 202.1 85.5 287.6 30 119

G. Financint

3.40 The proposed IDA Credit of SDR 107.7 million ($147 million equiva-lent) would cover 51 percent of the project cost. The remaining 49 percent isto be financed by local sources as summarized in Table 3.6.

Ta le 3 6: PROJECT FINANCING PLAN$ Mlillion)

Sources Total 2 of Total

IDA 147.0 51.1Central Government 17.0 5.9Provincial/Prefecture Govts. 45.5 15.8County Governments 19.0 6.6Local Banks 9.0 3.1Special Poverty Alleviation Funds 10.0 3.5Enterprises and Farmers 40.1 13.9

Total 287.6 100.0

3.41 The governments at each level would be responsible to provide coun-terpart funding for the activities in their jurisdiction. These funds wouldcome from budgetary allocations from the central, provincial, prefecture andcounty governments, special poverty alleviation funds (both grants and loans),

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local bank loan., and self-contribution by enterprises and farmers themselves.The information on sources and amounts for counterpart funding is given inAnne3 1, Table 5.

H. Procurement

3.42 Procurement arrangements are summarized in Table 3.7.

Zible 3.7: PROCUREHENT PROFILE($ million)

Project Element ICB LCB Other NIP Total

Land - - 12.8 12.8(0.0) (0.0)

Civil Works 39.4 82.8 52.2LS - 174.4(19.3) (40.6) (15.3) (75.2)

Materials 12.7 1.6 10.1 - 24.4(12.7) (1.6) (8.1) (22.4)

Machinery & Equipment 25.0 7.0 11.8 - 43.7(25.0) (6.8) (9.4) (41.2)

Vehicles 4.5 - - 0.1 4.5(4.5) (0.0) (4.5)

Training - - 3.1 _ 3.1(3.1) (3.1)

Technical Assistance lb - - 0.3 _ 0.3(0.3) (0.3)

Research - - 0.4 - 0.4(0.3) (0.3)

Design, Engineering - - - 8.0 8.0and Management (0.0) (0.0)

Farm Labor - - - 9.5 9.5(0.0) (0.0)

Working Capital - - - 5.6 5.6(0.0) (0.0)

Construction Tax - - - 1.0 1.0(0.0) (0.0)

Tot&l 81.6 91.3 77.9 36.8 287.6(61.5) {(49.0) (36.5) (0.0) (147.0)

La By force account.lb Services would be procured in accordance with World Bank Guidelines.

Notes Figures In parenthesis are the respective amounts financed by IDA.NIP: Not IDA financed.

3.43 Whoks. Civil work. contracts with estimated costs of $10 million ormore will be procured through international competitive bidding (ICB) proce-dures. Two packages for the Fusi Arterial Canal (totaling $39.4 million) meet

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that criterion and are scheduled for ICB. Qualified domestic contractorswould be eligible for a 7.5 percent preference in bid evaluation. The majorworks for the diversion, storage and a portion of the main canals in theupstream of the project areas have been completed and construction is alreadyunder way in the segments of the main canals just ahead of the works includedin the project. Works included in the project are dispersed among three irri-gation systems and their design incorporates the maximum utilization of localmaterials (e.g., sandstone blocks for canal lining) and inexpensive butskilled local labor. The technology, though labor-intensive and traditional,has been proven effective for the area. Due to use of local materials, labor-intensive construction methods and remote and scattered construction sites,most of this work would not be of interest to foreign construction companies.As a result, about $82.8 million of civil works would be procured throughlocal competitive bidding (LCB) procedures acceptable to IDA for constructionof the majority of the buildings, pumping stations, canals, tunnels and con-veyance and control structures. Even though foreign competition is not anti-cipated, foreign firms would be allowed to participate in LCB. About onethird of total civil works, i.e, irrigation system laterals and sublateralcanals, rural roads, afforestation and other on-farm works, would be carriedout by local labor forces (generally farmers) mobilized by counties and town-ships. These works are too small and widely scattered to be suitable forcompetitive contracting. Force account procurement for these categories ofworks would not exceed $52.2 million.

3.44 Goods. Equipment, materials and vehicles to be procured under theproject are estimated to cost $72.6 million. Packages larger than $200,000would be procured through ICB. Steel, fertilizer, vehicles, turbines, andmajor agroprocessing equipment (total value of $42.2 million or 58 percent ofall goods) would be procured through ICB. Passenger vehicles would befinanced by local funds. Domestic manufacturers would receive a margin ofpreference equal to 15 percent of the c.i.f. price of imported goods, or theactual import duties, whichever is the lesser in the evaluation of ICB bids.

3.45 Small agricultural machinery, pumps, utility and training equipment,and spare parts (total $7 million) would be procured through LCB proceduresacceptable to IDA in which foreign suppliers may participate. Cement andphosphate (total of $1.5 million or 2 percent of the goods) would also beprocured through LCB. Due to the need to supply small batches of cement tonumerous scattered force account sites over the entire implementation periodand the limited handling and storage capacity in the project area, the PHOwould annually place blanket orders from cement suppliers and manufacturerswith indefinite quantity and delivery terms.

3.46 The remainder of the goods (about $21.9 million) will be procuredthrough limited internrtional bidding (LIB) or shopping. LIB will be used toprocure pesticides, cowr:ters, and other office equipment (total of $4.5 mil-lion). There are only a limited number of suppliers of these specializeditems who could offer competitive prices, therefore ICB would not be the mosteconomic and efficient method of procurement. Small quantities of equipment,instruments, miscellaneous goods, planting materials and breeding stock forlivestock (total of $17.4 million) would be procured through domestic shoppingunder contracts not exceeding $50,000.

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3.47 Trainina. Technical Assistance. and Research. Training, technicalassistance and research (about $3.8 million) would be carried out based onprograms to be agreed with IDA. Consultants for training and technical assis-tance would be employed in accordance with Bank Group Guidelines for Use ofConsultants.

3.48 IDA Review. Bidding documents for goods packages in excess of$200,000 and works packages in excess of $2,000,000 would be subject to priorreview by IDA. This review would cover approximately 13 works contracts(53 percent of total works by value) and 14 goods packages (about 70 percentof total goods by value) over the six-year implementation period. Standardbidding docmaents agreed between the GOC and IDA would be used in preparingbid documents. All reimbursable training and technical assistance programswould be subject to prior IDA review. Other contracts would be subject toselective review after bid awards. Sichuan has appointed China NationalMachinery Import and Export Corporation to assist them in ICB procurement;this corporation has procurement experience in Bank Group projects and isacceptable to IDA.

I. Disbursements

3.49 Disbursements for machinery, equipment, vehicles and materials wouldbe made against 100 percent of the foreign expenditures of directly importeditems, 100 percent of the ex-factory pric, of locally manufactured items, andagainst 75 percent of expenditures for other items procured locally. Dis-bursement for civil works would be against 50 percent of total expendituresexcept those on force account, e.g., local civil works for irrigation lateralsand sublaterals, rural roads, afforestation and on-farm works, would be madeagainst 30 percent of total expenditures. Civil works contacts on forceaccouzt would exclude the cost of separately procured cement and steel andothers would exclude the cost of steel. Disbursements for training and con-sultant services would be made against 100 percent of total expenditures. Totake advantage of labor availability during the slack period of farming activ-ities in the 1991/92 winter season, retroactive financing (up to a limit of$14 million equivalent) for upstream canal contracts, on-farm works, minorstructures, rural roads, land improvement, afforestation work, planting mate-rials, and training would be permitted for expenditures incurred after Janu-ary 1, 1992 and before signing of the Credit Agreement.

3.50 Statements of expenditures (SOEs) would be required for disbursementto be made against training, study tours, contracts for goods and works cost-ing less than $200,000, and force account work. SOEs for civil works carriedout by force account on irrigation and drainage,, on-farm works, rural roads,land improvement and afforestation are to be supported by progress reportsshowing physical quantities and unit prices, the latter updated annually andreviewed by IDA.

3.51 To facilitate disbursements, IDA would provide funds to SichuanProvince to establish a Special Account in a bank acceptable to IDA. ThisSpecial Account would be maintained in US dollars and operated by the Provin-cial PMO. The authorized allocation to the Special Account would be $7 mil-lion. The Provincial PHO would prepare and submit applications for replenish-ment of the Special Account monthly or whenever the account has been drawn

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down to half of its initial deposit amount, whichever comes first. The proj-ect is expected to be completed by December 31, 1998 and to close on December31, 1999. Disbursements for agricultural projects in China have been betterthan average for the Bank and the Asia Region. The disbursement of the proj-ect would be slightly slower than the average disbursement profile for theagricultural sector in China since the project involves large scale construc-tion and would be implemented over six years. The estimated schedule of dis-bursements is given in Annex 4.

J. Accounts and Audits

3.52 County Project Offices (POs) would maintain records of all projectexpenditures. These records would be forwarded regularly to the provincialPMO, who would consolidate the accounts of expenditures and submit them toIDA. At negotiations, assurances were obtained from Sichuan Provincial Gov-ernment that the PMO would maintain consolidated project accounts which wouldbe audited by an independent auditor. The Provincial Audit Bureau would beacceptable for this purpose. An assurance was obtained that the auditedaccounts would be submitted to IDA within six months of the close of eachfiscal Year. The audited accounts a.e to include details on withdrawals fromthe Credit account made on the basis of SOEs, and the auditors' opinion as towhether such withdrawals were made against expenditures eligible for reim-bursement by IDA.

K. Environmental Impact

3.53 A detailed and comprehensive environmental impact assessment (EIA)of the project has been carried out by the Sichuan Research Institute of Envi-ronmental Protection (SRIEP). The report was reviewed by IDA and revised bySRIEP based on IDA's comments and recommendations. A proposed plan and budgetfor the monitoring and mitigation of project (potential) impacts has beensubmitted to IDA for review, and agreement was reached at negotiations as toits funding and implementation. The tentative budget for the EnvironmentalManagement Plan (EIP) is Y 1.5 million. These funds would be utilized to hireexpert consultants to review designs and mitigating measures, to provide tech-nical training to county and prefectural-level monitoring station staff, andto provide continuing support for monitoring of project impacts. An assurancewas obtained that Sichuan would imolement the EMP as atreed with IDA andensure that all urolect activities would conform to environmental standardsand auidelines. includint the environmental reaulations and auidelines issuedbv the National Environmental Protection Agency and its Provincial Environmen-tal Protection Bureau. accentable to IDA.

3.54 The ETA concluded that the overall impact of the project would bepositive. The soil conservation, forestry and livestock subcomponents wouldestablish sustainable resource management systems and reverse some of thenegative trends and impacts associated with soil loss and inappropriateexploitation of upland resources. The main, potential sources of the proj-ect's negative impacts have been identified as the effluent that would begenerated by the agroprocessing subcomponents and the increased use of agro-chemicals associated with intensification of agriculture in the irrigationareas.

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3.55 The measures to be taken to avoid or mitigate negative impacts fromthe project's main sources of concern are:

(a) Agronrocessint and Paper Mill Subcomyonents. Adequate budgetaryprovision has been made within each subcomponent to construct wastetreatment facilities at each location. Under the EMP, funds areprovided for expert review of waste treatment facility design, tomonitor the operation of the treatment facilities, to monitor efflu-ent from the plants, and to monitor water quality downstream of theplants. In addition, Sichuan provincial government agreed to closedown two small paper mills currently operating without any waste-water treatment in Pengshui as well as a bleached paper mill and arecycled paperboard making unit in Mianyang city when the new millcomes into operation (para. 3.28); and

(b) Increased Usaae of ARrochemicals. The project would strengthenagricultural support services including training of technicians andfarmers in established techniques of IPM and proper handling/use ofpesticides, procurement of pesticides with lesser environmentalImpacts, support to agronomic research in IPM, and fertilizer trialsto rationalize application rates. An assurance was obtained that2esticides to be nrovided under the nroiect would be anproved bv IDAand that Bank Groun atuidelines on storage, handlina., distributionand use would be followed.

3.56 A total of 132 households (564 persons) from two villages would beinvoluntarily resettled as a consequence of the Yangjiaba dam construction.Although the dam is not part of the proposed project, IDA has agreed with theSichuan Provincial Government that the resettlement be carried out accordingto the provincial resettlement standards already in place and that thesepeople would receive adequate compensation acceptable to IDA. An assurancewas obtained that Sichuan would ensure that the resettlement of 2ersonsaffected by the construction of the dam connected with the Yanaliaba irrila-tion scheme would be carried out in accordance with a resettlement Plan aareedwith IDA.

3.57 A more detailed discussion of the LIA and the proposed EMP are foundin Annex 9. A full EIA report is available in the project file.

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IV. ORGANIZATION AND MANAGEMENT

A. Proiect Coordination and Manatement

4.1 The Sichuan Provincial Government (SPG) has overall responsibilityfor the project. The management structure would replicate that used for otherBank-Group-financed provincial agricultural development projects, i.e., aLeading Group (LO) and Project Management Office (PMO) at the provincial leveland project offices (POs) at the prefecture and county levels.

4.2 Leadina Grouns. The SPG has established a provincial leading group(PLO), chaired by the Vice-Governor in charge of agriculture and assisted byrepresentatives from the provincial Water Conservancy, Agriculture, AnimalHusbandry, Light Industry, and Finance Bureaus, the provincial Planning Com-mission, Department of Textiles, Sichuan Provincial Silk Corporation, Sichuanchapter of the All China Women's Federation, Agricultural Bank of China, andPeoples' Construction Bank of China. The main responsibilities of the PLGwould be to organize counterpart funding, formulate project-related policiesand plane, review and resolve major issues related to the project and enlistsupport of other relevant agencies. The PLC would make policy decisions onmatters related to the project, monitor progress on project implementation andfinancing and resolve any policy issues which may arise. The PLG would coor-dinate the activities of other agencies, approve annual work programs andbudget, and provide guidance to the provincial-level PMO. It would also keepthe provincial government apprised of the overall progress of implementation.At the prefecture and county levels, similar leading groups would be estab-lished. An assurance was obtained that a orolect leading aroun at each of theProvincial. vrefecture and counts levels included in the nroiect would bemaintained with composition and resoonsibilities acceptable to IDA.

4.3 Proiect Manatement Office<. The Provincial Project Management Officehas been established with overall responsibility for project implementationwhile coordinating activities with relevant technical bureaus. The P1O haspresently 20 staff (16 full-time and 4 part-time staff) recruited from theWater Conservancy Bureau, Water Conservancy Design Institute, and Agriculture,Animal Husbandry, Forestry, Light Industry, Textile and Finance Bureaus andSichuan Silk Corporation, and plans and supervises the implementation of allthe components. Project offices have already been established at the prefec-ture and county levels to plan and implement the on-farm development, landallocation and agriculture development program and to monitor and evaluateprogress. There are a total of 31 POs which would ultimately have a staff of240. Project management staff would interact with staff from relevant techni-cal bureaus during project Implementation for technical advice. An assurancewas obtained at negotiations that a nroiect manatement office at the 2rovin-clal level with functions and responsibilities acceotable to IDA would bemaintained and staffed with comnetent staff in adeauate numbers.

4.4 The Sichuan chapter of ACWF would be represented In the ProvincialLO and In project management offices (provincial, prefectural and countylevels) for Increased Involvement of women in project management, beneficiaryhousehold selection and training of women. ACWF, which Is already active intraining and educating women, would play a significant role in organizing and

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training women farmers and entrepreneurs in the project area. For example,ACWF would help organize cooperatives of women for rabbit hair processing(carding, sorting and cleaning, and knitting) and marketing, and organize andtrain female-headed households in small holding livestock production and mul-berry and cocoon production. A representative of the Sichuan chapter of ACWFwould be included in the Provincial Leading Group and in project managementoffices for increased involvement in project management, beneficiary householdselection and to organize training of women farmers and entrepreneurs.

B. Execution of Proiect Works

4.5 The Provincial PM0 would have overall responsibility for planning,coordinating and supervising the construction of project civil works andestablishing the operation and maintenance system. The Provincial Water Con-servancy Bureau (WCB) would play the key role in design, preparation of biddocuments, construction supervision and training of operations and maintenancestaff. The Provincial Bureau of Animal Husbandry would be responsible fordesign and supervision of the livestock subcomponent.

4.6 Major LCB contracts for civil works for irrigation, soil conserva-tion and agroprocessing plants would be signed between construction companiesand the PM0, which would be responsible for coordinating construction supervi-sion. County governments would organize local farmers for carrying out earthworks, building small structures, land levelling, land development and treeplanting. The county project offices assisted and supervised by the PM0 andProvincial WCB would be responsible for survey, design, preparation of biddocuments, procurement of materials and construction supervision of on-farmdevelopment works. They would work closely with county and township govern-ments to ensure that land allocation had been completed well before on-farmdevelopment work commenced. This would ensure that existing land holders andcontractors could contribute to final design to suit the proposed croppingpattern and contribute labor. At the county level, the water conservancy andagriculture bureaus would be responsible for survey, design and supervisingimplementation of the on-farm development and soil improvement program. Thematerials and equipment sections of these county bureaus would be responsiblefor procurement, preparation of bid documents and award of contracts for on-farm development works, soil improvement and agriculture components. Anassurance was obtained that Sichuan would. by December 15 of each year. pre-vare and furnish to IDA for review an annual detailed work plan and report ofthe schedule and financing arranpements. includint a statement of proposedannual counter2art fundina. for proiect implementation for the followina year.

C. Manatement of Production Activities

4.7 Crops and Livestock. The provincial bureau of agriculture isresponsible for formulating agricultural policy, planning and administeringprovincial production programs and providing technical support and training.Bureau staff at prefecture/municipality and county levels would be responsiblefor implementation of project production activities under the overall direc-tion of the P10. The county seed companies which operate as autonomous unitsunder the county agricultural bureaus would be responsible for project areaseed requirements. Fertilizers and pesticides would be sold primarily through

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the prefecture and county branches of the Supply and Marketing Corporation(SMC).

4.8 Soil Conservation. The department of Soil Conservancy under WCBvould be responsible for providing all technical inputs related to soil con-servation. County level soil conservation offices would carry out projectdesign, construction supervision, training, extension and contracting of tech-nical assistance, preparation of annual budgets, and project monitoring andreporting. Township technical stations would implement all project activitiesand provide technical assistance and supervision at the farm level. All workscarried out, both on and off-farm, would be done under contracts with theparticipating project households and the township technical stations.

4.9 Sericulture. Sichuan Provincial Silk Corporation (SPSC), under thejurisdiction of China National Silk Import and Export Corporation (CNSIEC),would oversee all activities related to cocoon and silk production and tradein Sichuan. SPSC would be responsible for project design, selection of sitesand beneficiaries, management of subproject implementation at prefecture andcounty levels through its branch offices and for technical support includingprovision of technical and production inputs, training, and marketing ofcocoons. On research, SPSC would coordinate with the Sericulture Institute ofSichuan Agriculture Academy of Science, Department of Sericulture Sciences,Southwest Agricultural University and Nanchong Silk School.

4.10 Agro2rocessinx. The Sichuan Light Industry Bureau would be respon-sible for technical designs and layout plans for the agroprocessing plants.Under the guidance of the Frovincial EPB, the relevant prefecture EPB wouldalso review the environmental waste system to be included in the project.Each plant would be owned by county or township governments, but independentlyoperated with responsibility for its own profits and losses.

D. Financial Manaaement

4.11 Flow of Funds. In conformity with Chinese Government practice,proceeds of the IDA credit would be onlent to Sichuan Province at an interestrate of 5 percent with a repayment period of 15 years, including a five-yeargrace period. The foreign exchange risk wouid be borne by the province. TheSichuan Bureau of Finance (BOF), representing the provincial government, wouldchannel these funds to prefectural governments. The prefectural BOF wouldpass on part of the project funds to POs at prefecture ait county levels forpublic works, research, training and extension works and onlend the other partthrough fiscal or fliancial entities to enterprises and farmers. The Agricul-tural Bank of China (ABC) and People's Construction Bank of China (PCBC) wouldact as financial agents for onlending purposes and would not bear any creditrisk. Onlending to farmers and enterprises would be only for activities thathavy been appraised and approved by the PMO. An assurance was obtained thatthe proceeds of the Credit would be made available to farmers and enterprisesunder the orolect by ABC or PCBC under arrantements satisfactorv to IDA in theform of loans bearing interest at rates no less than the urevailint ratecharted by ABC for limilar loans for similar nurDoses. For the subprojectslocated in poverty counties, the actual grace periods of loans would belengthened as necessary to reduce financial burdens based on projected cashflows for each final beneficiary. A Project Agreement incorporating all proj-

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ect terms and conditions would be signed between IDA and Sichuan Province.State Council approval of the Development Credit Agreement would be a condi-tion of effectiveness of the Credit.

4.12 The project would also establish three revolving fund.: (a) a work-ing capital revolving fund for procurement of fertilizer, pesticides and agri-cultural inputs (para. 3.11(c)]; (b) a soil conservation revolving fund (para.3.13); and (c) a poverty alleviation fund (para. 3.15). The source, sustaina-bility and management of the funds and selection criteria of beneficiarieswere confirmed at negotiations. An assurance was obtained that Sichuan wouldestablish and operate these revolvina funds in accordance with groceduressatisfactory to IDA.

4.13 Cost Recovery. Full recovery of the IDA portion of total projectfunding would be the responsibility of the Bureaus of Finance (BOFs) at theprefectural and county levels. Counties would repay prefectures, which wouldrepay the province, which in return would repay MOF for the use of the IDAcredit. All investment costs except grants (e.g., poverty alleviation grant,etc.) would be repaid by project participants. For recovery of irrigationinvestments, present policies and regulations for water charges vary from oneprefecture and county to another. The water charges are designed to cover atleast 100 percent of the O&M costs and possibly part of the capital investmentover the project period of 30 years. In most cases, the charges are set forpayment in kind, usually rice. Due to the wide variation in water volumetricdelivery from year to year, the water charges are structured into two compo-nents--a base charge assessed by unit of land area served and a volumetricrate for actual water used above a basic allocation. At present, the basecharge rate is 180 kg of paddy per ha and various lesser charges for othercrops. In addition, there are revenues from power generation and aquacultureproduction in reservoirs, which would also contribute towards cost recovery.An assurance was obtained that Sichuan would collect water charaes at rates tobe revised Deriodicallv as necessarY to meet at least the full annual onera-tion and maintenance costs of the comipleted irriaation schemes.

E. Irriaation System ODeration and Maintenance

4.14 Each irrigation subproject would have an independent irrigationmanagement office (DMO) which would set up O&M organizations and facilitiesincluding: establishment of O&M offices, operations and maintenance centers,equipment service centers, and maintenance materials yards; selection, assign-ment and training of personnel; and procurement of the necessary O&M equipmentfor each of the three irrigation subprojects. SP and WP each have their ownIMO already in operation and a new one would be established for the YP sub-project. Each IMO would be responsible for budgeting, revenue collection(from water charges as well as other operational incomes, e.g., power, fish-ery, etc.), and coordinating the work program of all OM offices in each irri-gation scheme. OM of the irrigation system down to the trunk ditch levelwould be handled by these TMOs, and those of the trunk ditch systesm and belowwould be the responsibility of the respective counties, townships and vil-lages.

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4.15 Ooeration. The new distribution systems for the WP, YP, and SP sub-projects would be fully integrated with all existing reservoirs and ponds.However, due to the high variability of the water sources, these systems wouldrequire careful operation to achieve the planned benefits. Advantage would betaken of advanced simulation techniques to assist with planning and trainingfor operation. Such models would provide, as their main use, assistance withlong-term operational planning, yet they can also assist with day-to-day oper-ating decisions. Statistical forecasting, in conjunction with model opera-tion, would assist in planning the range of cropping options at the start ofeach year. The organization and communications capability of the operationspersonnel would be tailored to provide rapid response to localized watershortages and quickly changing water supply and demand over the subprojectareas. The training programs would be directed toward upgrading the capabil-ity of canal operators. The operations staff would also be involved in watermeasurement and record-keeping to support cost recovery activities. Most ofthe actual collection of commodities for payment would be carried out by thelocal Grain Bureaus who would convert the receipts to monetary payments.

4.16 Maintenance. The most critical period of maintaining an irrigationsystem is during the first five years of operation. The maintenance centerunder each DMO would carefully monitor the initial performance of the canalsand devise regular programs for the first line maintenance activities. Themaintenance centers would be constructed and the basic equipment procuredunder the project according to the phasing of the irrigation subprojects.

4.17 A Plan of Oleration and Maintenance (POM) would be prepared as partof the project for each irrigation scheme which would outline the long-termO&M program. The POM would document more detailed organization charts ofoperations, maintenance and administrative staff for each subproject. The POMwould give the responsibilities for each post and the portion of the projectfacilities and areas to be assigned to various O&M offices. The rules andregulations for operation and procedures for responding to requests for watersupply would be outlined. Of particular importance would be the policies thatgovern operations and allocations of limited supplies in an extreme droughtsituation. As the construction is completed and turned over to the O&M cen-ters, there would be a companion supplying of a complete set of "as built"drawings of the completed works from the design units. The equipment andoffices required for the complete subproject would be outlined in the PON,some of which would be provided under the project. The annual scheduled main-tenance requirements in detail, together with cost estimating and budgetingprocedures, would be presented to guide in the annual process of allocatingfunds for system O&M. An assurance was obtained that the POMe would be com-nileted and furnished to IDA for its apgroval by Ausust 1. 1993.

F. Proiect Launch Workshoo

4.18 To organize and initiate project implementation, IDA and local staffwould conduct a Project Launch Workshop in Chengdu no later than three monthsafter Board approval of the IDA credit for staff of the provincial, pre-fectural and county project offices. The purpose of the workshop would be toreview the total program for implementation and to clarify tasks and responsi-bilities at each level. Topics would include IDA procurement and disbursement

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guidelines and procedures, financial management, supervision, and monitoringand evaluation.

G. Monitorina. Evaluation and Renorting

4.19 The provincial, prefectural and county offices and their Monitoringand Evaluation (M&E) units would be responsible for monitoring project prog-ress, and would evaluate the project's economic and financial benefits foreach component and the project's overall impact. They would keep a currentaccount of the physical and financial progress of each of the project compo-nents to compare with management projections. Physical indicators wouldinclude: the kilometers of irrigation and drainage system and service roadscompleted; the area of on-farm works and soil improvement completed; theimpact of project interventions on soil loss, runoff and crop yield as mea-sured by monitoring stations in the soil conservation demonstration areas; thearea (in m2) of construction completed for project buildings; the procurementof construction materials, vehicles and equipment; the procurement and distri-bution of fertilizers, agrochemicals and planting material; the area underirrigated cropping and the planted area and average yield of project areacrops. Financial monitoring would track actual expenditures against projectedexpenditures and claims for disbursement against credit proceeds for eachproject component. They would also check collection of land and productiontaxes and water charges to compare with planned collection. The county POswould submit the information to prefecture POs, who would submit the informa-tion to the Provincial PMO in December and June of each year. During thefirst two years of implementation, the project office with the assistance ofcounty agroeconomic and cost of production survey units would conduct a base-line survey on a random sample of existing village households both within andoutside the project areas to check farm size, cropping patterns, use of laborand inputs, yield of major crops and other important farm activities, andtotal farm household incomes and expenditure to measure the project's Impact.Repeat surveys in 1995 and 1998 on the same sample plus any new householdswould provide a sound basis for assessing the Impact of the project on farmproduction and income. The above M&E system would provide the basis to pre-pare a project completion report by the PMO, for submission to IDA no laterthan six months following the closing date. A list of key monitoring indica-tors for physical progress and project expenditures and a plan for IDA super-vision are given in Annex 7.

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V. PRODUCTION. MARKETS AND PRICES

A. Production

5.1 Under the project, crop output would increase substantially throughsignificantly higher crop yields and a moderate increase in planted area. Atfull development, production would increase by 311,000 tons of paddy, 129,000tons of wheat, 21,300 tons of beans and peas, 30,500 tons of rapeseed, andabout 15,000 tons of other cash crops. The annual sown area would increase by34,000 ha and cropping intensity would increase from 185 percent to 210 per-cent. The area planted to rice, wheat and rapeseed would increase while thatof corn and sweet potatoes would decrease. Improvements in water availabilityand irrigation delivery systems would enable a higher cropping intensity andwould be the main factor contributing to higher crop yields. Increased provi-sion of inputs and strengthened research, extension and training programswould also contribute to raising yields. As a result of the project, yieldsof major crops are projected to increase as follows: rice 20 percent, wheat33 percent, rapeseed 47 percent and corn 50 percent. Production and yields ofthe main crops grown under the irrigation component are summarized in Table5.1. These yields are considered achievable since they are in line withyields already being achieved under similar conditions on large areas of fullyirrigated land adjacent to the project. Rice yields are for lowland paddyrice where hybrid varieties are grown exclusively as a summer crop in rotationwith wheat or rapeseed. Under these conditions, rice yields in Sichuan areamong the highest in China. Full development would be achieved five yearsfollowing completion of project works.

Table 5.1 IRRIGCATION CONFORt. t 07* OFPT1vWelopuent Output With ed Vithout Project)

Ithout Pro1ect Iith Protect lentelcre- x 1W9QuQro 3cVucou area x s&c 8rmonUoO ree a LECraL roaiaroii('000 ha) (tlba) ('000 to"s) ('000 ha) (tlha) ('000 tons) (0000 ha) (tlb&) ('000 tone)

Paddy 56.3 6.9 367.8 63.5 8.3 698.4 27.2 1.5 310.6Ubeat 58.9~~~~S 3. 7.6 7. 40 339 1I.9 1. 119.

Coro 33.2 3.0 105. 9 22 .8 4.5 103.7 .12.4 1.5 -2.2Sweet potato 2339 29 9. 16.1 3.7 60. .17.8 : 0.8 .394Beane &Pe" 12.1 1. 17.4 1864 2.1 38.7 6 0.7 21 3Rapeseed 31.5 1.5 46.7 34.9 2.2 77.2 3.4 n.7 30.5PRaet. 2.7 1.5 4.1 3.0 2.2 6.6 0.3 0.7 2.5Cotton 8.1 0.5 4.6 8.3 0.8 6.7 0.3 0.3 2.1Other cash crops 12.1 21.7 9.6

Total crop area 250.7 264.5 33.8Total cuivated are 135.2 135.2Naaltlcropp2ag indes 183Z 2101

notes Other cash crops nclude ka"f, vegetables. etc.

5.2 Under the soil conservation component, an additional 164 ha ofannual crop land would be brought into production through increased croppingintensity, and an additional 11,769 ha of timber, fuelwood, tree crops, andpasture would be established. The projected yield increases for annual cropswould be readily achievable; projected yields from tree and grass planting arebased on current yields in the project areas and are likely to be exceededgiven the improved practices to be introduced under the project. At fulldevelopment, the forestry subproject would produce a total of 2.2 million m'

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of timber and 455,200 tons of fuelwood,l/ alleviating a shortage of commer-cial timber in the project area and providing increased Income to farmers. Atfull development, annual production of gallnut would be about 1,440 tons,woody medicine 2,000 tons and alpine rush 8,100 tons.

5.3 The project would also assist 115,000 households to plant mulberryon 7,600 ha, which at full development would produce over 205,000 tons of mul-berry leaves sufficient to produce 1,116 tons of fresh cocoons. About 36,100individual households would establish small livestock raising enterpriseswhich would produce about 1.9 million head of rabbits, goats, and geese, whichwould be either sold live or to neighboring processing plants. Six agropro-cessing plants supported by the project would produce 2,800 tons of processedmeat, 7,000 pieces of hide, 40 tons of goose down, 254 tons of angora woolyarn, 500 tons of tannic acid and 20,400 tons of various types of paper. Inaddition, the knitting lines of the rabbit hair spinning mill and about 100individual households with semiautomatic knitting machines would produce153,000 pieces of knitted garments, of which about one third would beexported.

5.4 Table 5.2 summarizes project output levels of all project commodi-ties from noncrop components at full development.

B. Markets and Marketint Channels

5.5 Sichuan Province is presently self-sufficient in food grains. How-ever, with more than 10 percent of China's population, with annual populationgrowth of I million, and an annual decline of arable land of 20,000 ha, sus-taining food security is one of the most important objectives of the provin-cial government. Local demand would readily absorb the incremental productionof grain and other food crops that are expected to be produced under the proj-ect. All grain produced under the project would be sold on the free marketand marketed by private traders who are already active in the province. Out-put of beans and peas would more than double in the project area, but wouldnot create any marketing difficulty given the established active trade withneighboring provinces and the strong demand.

5.6 The incremental production of timber would be absorbed by the localprovincial market, and also through shipments elsewhere in China. There is alarge market for good-quality paper and pulp in China, which would readilyabsorb the 20,400 tons of paper that would be produced under the project.Paper mills located around Chongqing have already expressed interest in pro-curing pulp from Pengshui paper mill. Incremental livestock production wouldbe absorbed by the domestic market and also through exports of angora yarn,goose meat, liver and goose down to foreign countries, with possibilities forfurther expansion of production and export trade in the future if favorableresults are obtained. At full development, about half of the processed geese,rabbits and a small quantity of tannic acid and paper would be exported, withestimated total annual export value of agroprocessing products of about Y 180million. Goats, rabbits and geese would be sold both live and processed.Interprovincial trade of live animals has been active in Qianjiang Prefecture.

1/ On the basis of a single harvest.

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Table 5.2a OTHER COPONENTSa StUMfRY OF PROJECT OUTPUTS(With Project at Full Development)

Area No. of Production No. of animals(ha) households (tons) ('000 head)

Soil Conservation 7,700Crops 1,434Timber 25,903 mPuelvood 26,600Economic Trees 17,972Fodder 31,000Fish 14

Forestry 163,700Paulownia 6,000 809,114Chinese Toons 2,700 770,486Chinese Fir 2,300 419,357Cryptomeria 700 139,100Masson Pine 2,300 451,842Slash Pine 700 141,100Alder 700 128,486all Trees 6,000 17,000 1,440Woody Medicine 2,667 8,000 2,000Alpine Rush 1,800 6,700 8,100Tea Rehab. 2,333 3,500 11,725SericultureMulberry Planting 7,600 115,000 205,020Fresh Cocoons 115,000 1,116

LivestockGoats 21,100 629Rabbits 5,000 750of vhich rabbit hair 250Geese 10,000 500

Agroprocess$ngGoat (meat) 680Cattle (meat) 580Hides (pieces) 7,000Geese (meat) 1,404Geese (down) 40Geese (liver) 112Rabbit Hair (yarn) 254Tannic Acid 500Paper 20,400

A livestock auction market was established in Dungshi, Youyang county in 1987,and is now open five days a week. On an average day, about 1,000 to 1,400goats are sold locally as well as to traders from other provinces such asHubei and Guizhou. A similar auction market also exists for rabbit wool inShishu, where the project would expand rabbit production and establish a rab-bit hair processing plant. Over 3,000 traders from all over the province and

- 45 -

neighboring provinces engage in rabbit wool procurement. So far, rabbit woolis sold unprocessed to tha wholesalers and ginners from Hubsi, Hunan and Anhuiprovinces.

5.7 Chinese exports of raw silk and silk products in 1989 reached $1.84billion and the target for the year 2000 is $2.7 billion. China traditionallyexported raw silk but is shifting towards more processed goods such as yarn,dyed fabric as well as garments. The share of raw silk in total silk exportvalue has been steadily dsclining from 49 percent in 1980, to 40 percent in1985 and to 25 percent in 1989 as value added is far greater for more pro-cessed products. Nevertheless, with limited designing and dyeing skills,China would continue to export raw silk which can readily find markets inJapan, Korea and European and North American countries. In China, silk mar-keting is fully controlled by the China National Silk Import and Export Corpo-ration (CNSIEC) and its provincial branches. The Sichuan Proviucial SilkCorporation (SPSC), a branch of CNSIEC, has a mandate to export silk directlyand is currently engaged in foreign trade with over 40 countries. Prefecturaland county level branch offices of SPSC would procure almost all cocoons pro-duced in the project through well established networks of cocoon collectionand drying centers. At township and village levels, SPSC has set up collec-tion points vhere farmers take their fresh cocoons to sell. Fresh cocoons arethen classified, inspected,ava crops--and buy fertilizer, agrochemicals and

other farm inputs at free market prices. An assurance was obtained that 2rainquotas would not be increased in any of the counties under the 2roiect. Ingeneral, farmers are required to sell a portion of their food grain (rice) tothe State, at a contract price that is set by national authorities whichcurrently amounts to Y 0.54/kg for paddy of average quality as compared to afree market price of about Y 0.80/kg. In return, they receive fertilizer at asubsidized contract price at planting time. The quantity of rice to be deliv-ered by farmers to the Gr.iin Bureau at the contract price amounts to about405 kg per ha of paddy fielld, in addition to a duty quota or tax (deliverodwithout payment) of about 150-165 kg per ha. The quantity of fertilizerreceived by farmers at contract price in exchange for quota deliveries variesaccording to availability. Apart from contract prices set at the provinciallevel, negotiated prices for crops and fertilizer are set by county authori-

- 46 -

ties within a range set by higher-level governments In order tobiAsale of these crops to public institutions.

5.9 Generally, larger goats (above 30 kg live weight) command a premiumprice which at present is about Y 2.7 per kg versus Y 2 fc.r goats weighing20-25 kg. Goats under 20 kg are sold for as low as Y 0.81kg. Rabbit hairprices vary according to grades. An average farn-gate price in 1991 wasY 60/kg, while average auction prices at the wholesale market varied fromY 65/kg for the lowest grade III, Y 80/kg for grade II and Y 100/kg for thehighest grade I. All silk cocoons must be sold to the local government at afixed procurement price that depends on the quality of the product. The aver-age price received by farmers for cocoons has increased from Y 1/kg in 1978 toY 3.4/kg in 1980, to Y 9.1/kg in 1990 in current prices. Rapid increase inprocurement prices fueled by increasing demand both in domestic and exportmarkets has been the main force behind rapid growth of this industry and thisprice trend would likely continue.

5.10 Input and output prices used in crop budgets for financial analysisare presented in Annex 6. For economic analyse., the farm-gate value of fer-tilizers has been calculated on the basis of World Bank international priceprojections (import parity value), with appropriate adjustments for nutrientcontents, domestic and international transport and handling costs. The eco-nomic value of most other farm inputs such as agrochemicals and organic manurehas been considered equivalent to the financial price. For farm outputs,border prices based on World Bank price projections have been calculated forpaddy, corn, and wheat, and actual export price data for livestock productsand raw silk have been taken into account in order to estimate the exportparity values.

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VI. BENEFITS, JUSTIFICATION AND RISRS

A. Benefits

6.1 The major benefits from the project would derive from incrementalcrop production, which would be the result of investments made in irrigationfacilities together with an improved extension service, adoption of improvedtechnologieso, improved input availability and farm management. The estimatednet present value (at 12 percent discount rate) of incremental on-farm netbenefits amounts to Y 571 million over the 30-year economic life of the proj-ect. Other production benefits which are described earlier include increasedproduction of livestock, silk cocoon, timber, fuelwood and other cash crops.In addition, the project would improve socioeconomic conditions of some of thepoorest and the most remote areas of the province by helping poor farmers andwomen, improving the environment, better managing natural pastureland, andpreventing soil erosion.

B. Emplovment and Incomes

6.2 Employment opportunities generated by the project would help reduceseasonal underemployment among the rural labor force in and around the projectarea. At full development, farming activities in the irrigated areas wouldcreate an annual Incremental demand for labor of about 179 million person-daysper year, equivalent to about 600,000 new jobs. In total, the project woulddirectly increase incomes for about 883,000 households. If households whowould indirectly benefit from supplying raw materials to agroprocessing plantsare included, the total number of beneficiary households would be over I mil-lion. The farm model analysis shows that, at full development, the annualincome of a representative village household would increase from Y 359 toY 595 for crop cultivating householdo, Y 385 to Y 860 for sericulture house-holds, and Y 320 to Y 1,122 for livestock raising households. Income from thegallnut subproject would raise 17,000 households (66,000 persons) above thepoverty line, with incremental incomes of Y 152 per capita. At full develop-ment, Chinese medicine production would provide an incremental income of Y 141per capita.

C. Women In Develonment

6.3 While it would provide additional incomes and employment opportuni-ties for poor farmers at large, the project would particularly help improveliving standards of poor women in some of the poorest and most remote areas ofChina. In the project areas, there is considerable evidence that female-headed households disproportionately suffer poverty due to limited access tocredit. The project would provide women with equal access to credit. Sichuanwould select female-headed households as the top priority beneficiary group tocorrect, at least partially, the existing bias. Planting of mulberry treesand production of silk cocoons are traditionally done by women as is tendingof small livestock, such as rabbits and geese. Hand processing and clothesknitting activities would create small household-based female-run enterprises.Rabbit hair spinning mills, also financed under the project, would supplyhigh-quality yarn to, and also procure sweaters from, these women for export.The various activities designed to help women would generate additional

- 48 -

employment of about 100,000 jobs for female workers. Silkworm raising, rabbitraising, rabbit hair spinning and knitting activities would generate annualincremental income somewhere between Y 240 to Y 460 for each woman. Basicextension services would focus on training women farmers, especially in seri-culture and rabbit raising.

6.4 The PHO would extend longer grace periods for repayment of loans toreduce cash flow burdens during the initial years, provide adequate access tocredit and input supply, and train female workers and farmers. An assurancewas obtained that a minimum of 50 percent of farmers and 20 oercent of tech-nicians to be trained would be women. The training programs to be supportedunder the project would emphasize training of female extension workers andtechnicians, who in turn, would train more female workers. Active roles forNGOs, e.g., ACWF, would also be enlisted in these endeavors. The projectwould be one of the first substantial efforts to help establish economicallyviable income generating activities in the more remote project areas.

D. Rent and Cost Recovery

6.5 The proposed level of water charge collection would raise adequatefunds to provide full recovery of operation and maintenance costs. Incremen-tal tax receipts generated by the project would give a cost and rent recoveryindex of about 20 and 35 percent, respectively. Substantial incremental taxrevenues would accrue to government as a result of the project. At fulldevelopment, it is expected that incremental tax revenues would exceed Y 36million per year derived from the taxes paid by silk companies, from the farm-ers on the basis of their paddy field aria, and from the production taxes theypay when selling their products.

E. Financial and Economic Analysis

6.6 The financial and economic analyses are based on detailed crop bud-gets prepared for all the annual and perennial crops. The farm model analysisshows a substantial increase in farmers' income, indicating the financialstrength of the project. The analyses of soil conservation demonstration werecarried out based on representative farm models with the average joint invest-ment cost allocated to each household. The total economic investment costsinclude physical contingencies but exclude price contingencies, subsidies,poverty grants and taxme. Local financial prices have been adjusted for thepurpose of economic analysis by distinguishing outputs and inputs as tradeableand nontradeable. World Bank price projections or average export prices actu-ally realized in China were used to estimate the farm-gate economic prices in1992 constant terms for traded inputs and outputs. Conversion factors fornontradeable inputs were ostimated and applied to convert financial values toeconomic costs. Incremental on-farm labor has been valued at Y 4 per person-day. Based on these assumptions and an assumed project life of 30 years, thebase case economic rates of return (ERRe) for selected subprojects rangebetween 16 percent (for YP irrigation) to 45 percent (for silk), vith an over-all project ERn of 26 percent with a net present value of about Y 856 million.The project components have the following ERRs: irrigation 24 percent; soilconservation 25 percents income generation 42 percent; and agroprocessing21 percent. A summary of the economic and financial analysis and the resultsof the sensitivity analysis are presented In AUeL 6, Table 1.

- 49 -

6.7 The analysis of the three irrigation subprojects is based only onthe incremental benefits from this portion of the multiphased investment pro-gram and has taken all costs of dams and headworks already constructed as sunkcosts. With these assumptions, the overall irrigation component has an ERR of24 percent. However, a full analysis for the entire irrigation system hasalso been made which shows lower ERRs (i.e., SP down from 32 to 18 percent, WFdown from 19 to 15 percent and YP down from 16 to 13 percent).l/ Theselower EREs illustrate diseconomies of this type of discontinuous investmentprogram where the bulk of costs are incurred up front (for dams, reservoirsand main headwork), but realization of benefits is deferred for many years dueto delayed construction of downstream distribution canls and on-farm works.The economic and financial rates of return are likely to increase if otherindirect benefits are includedt, eg *, waiter available for municipal and indus-trial use, which would reduce the current frequent shutdown of plants due tolack of water.

F. Risks

6 8 The project faces no unusual technical or organizational risks.Under the project, management of project entities would be strengthened, andfarmers, who already have experience and basic knowledge, would be furthertrained. The potential risk of fluctuating markets for silk and angora woolproducts would be mitigated by provision of technical assistance in marketingand Improved processing technology and product designs.

1/ Sunk costs for works already completed or under construction are Y 333million for Shengshong, Y 80 million for Wudu and Y 15.8 million forYangjiaba, all converted to 1991 prices.

- 50 -

VII. AGREEMENTS REACHED ANp RECOMMENDATION

7.1 Assurances were obtained at negotiations from Sichuan Province that:

(a) maintenance and periodic safety Inspections of existing dams wouldbe carried out under arrangements satisfactory to IDA (para. 3.9);

(b) fertilizers and pesticides provided under the project would be soldto farmers at prices which cover the costs of procurement, transpor-tation and distribution (para. 3.11);

(c) a Grassland Monitoring System for Qianjiang Prefecture satisfactoryto IDA would be established by June 30, 1993 (para. 3.24);

(d) for large agroprocessing subprojects, e.g., paper mills and rabbithair processing, each enterprise would Implement an enterprisereform plan satisfactory to IDA, which would enable the enterprisesto be managed independently from the local supervisory bureau, underen enterprise manager selected by en enterprise board of directors(para. 3.27);

Ce) three paper mills would be closed in accordance with timing andprocedures acceptable to IDA (para. 3.28)S

(f) all project activities would be carried out to environmental stan-dards acceptable to IDA and an Environmental Management Plan wouldbe Implemented to monitor the environmental impact of all components(para. 3.53), and in particular, (i) the relevant prefectural Envi-ronmental Protection Bureau (EPB) under the guidance of the Sichuanprovincial EPB would approve final designs of effluent treatmentfacilities of each agroprocessing enterprise prior to beginningconstruction, and these enterprises would under SPB supervisionimplement and maintain effluent monitoring and treatment systemsaccording to the final designs approved by the PEPB (para. 3.26);(ii) pesticides to be provided under the project would be approvedby IDA, and that Bank Group guidelines on storage, handling, distri-bution and use would be followed (para. 3.55); end (iii) all planta-tions would conform to environmental guidelines satisfactory to IDA(para. 3.14);

(g) (i) all training, including study tours, and research under theproject would be carried out in accordance with training andresearch programs agreed with IDA (para. 3.33); (iL) the PHO wouldprovide n annual plan to IDA for approval by November 1, each yearwhich would include a list of proposed research, training and studytours for the coming year (para. 3.33); and (iii) at least 50 per-cent of farmer trainees and 20 percent of technicians to be trainedunder the technical assistance programs would be women (par.. 6.4);

(h) the PX0 would (i) maintain consolidated accounts of all componentsfor audititg annually by independent auditors acceptable to IDA, andthat the audited accounts would be submitted to IDA within siz

- 51 -

months of the close of each fiscal year (para. 3.52); (ii) by Decem-ber 15 of each year, prepare and furnish to IDA for review an annualdetailed work plan and report of the schedule and financing arrange-ments, including a statement of proposed annual counterpart funding,for project Implementation for the following year (para. 4.6);

(4) the resettlement of persons affected by the construction of the damconnected with the Ysangjiaba irrigation scheme would be carried outin accordance with a plan agreed with IDA (para. 3.56);

(j) Sichuan would establish (i) project leading groups at the provin-cial, prefecture and county levels included in the project, withcomposition and responsibilities acceptable to IDA (para. 4.2) and(Ci) a project management office at the provincial level with func-tions and responsibilities acceptable to IDA, staffed by competentstaff in adequate numbers (para. 4.3);

(k) three revolving funds--one each for agricultural inputs, soil con-servation, and poverty alleviation (paras. 3.11(c), 3.13, and 3.151--would be established and operated in accordance with proceduressatisfactory to IDA (pare. 4.12);

(1) the proceeds of the Credit would be made available to farmers andenterprises under the project by ABC or PCBC under arrangementssatisfactory to IDA in the form of loans bearing interest at ratesno less than the prevailing rate charged by ABC for similar loansfor similar purposes (para. 4.11);

(m) (i) water charges would be collected at rates to be revised periodi-cally as necessary to meet at least the full annual operation andmaintenance costs of the completed irrigation schemes (para. 4.13);and (it) a Plan of OWM would be prepared for each irrigation sub-project for IDA's approval by August 1, 1993 (para. 4.17); and

(n) grain quotas would not be increased in any of the counties under theproject (para. 5.8).

'.2 Proceeds of the IDA credit would be onlent to Sichuan Province at aninterest rate of 5 percent, with a repayment period of 15 years, including a5-year grace period (para. 4.11).

7.3 A condition of effectiveness would be State Council approval of theDevelopment Credit Agreement (para. 4 11).

7.4 Subject to the above conditions, the proposed project would consti-tute a suitable basis for an IDA Credit of SDR 107.7 million ($147 millionequivalent) on standard IDA terms with 35 years maturity to the People'sRepublic of China.

Sid_a Agriculture ODvelop_nt Project

bole Proulne and Project Are Statistics

Si_c_ _ °_anyuan 1ianyang Nncheng- Qi nj3i Smg shong wdu Yangjiabaitem tk 19B9 1990 198S 1990 1989 1990 1990 1990 1989 19C0 19E0 1990 1960 lW0 1980 1990

Ttabl Population 1.000 96.196 10B.1S4 2 4S4 2.606 8.112 4.091 8.966 9.782 2.345 2 654 1 99e 1.8S5 1.001 1,073 45 47Rural poulation 1,000 86.171 95.386 2,216 2 S81 8.417 622 8'457 9'066 2,245 2'469 1'400 1,482 953 980 44 46Rurs I br Fore 1,000 87,2a0 48.906 908 1206 1.SS2 1'785 8,784 4,172 6878 1281 459 G681 87 490 20 21Rural Hahld 1,000 19.670 25.488 475 604 972 1,002 1.996 2.600 576 658 mS 486 266 281 11 12Towahpfren 8547 86,50 264 265 801 88 688 66 804 804 124 124 76 76 8 8mintwatiwe Ville 76 0 76 6 20 2299 2,640 2,060 7,967 7,990 2,901 2,806 1.460 1,460 701 701 50 80Land Area 1,000 b 7,000 57,000 1,892 1,891 887 857 1,649 1.649 1,694 1.694 2aS 288 258 258 22 28CultivcaW Land 1,000 ha 6,604 6.299 169 162 274 260 M15 497 22S 207 102 97 79 75 5 SSawn Are 1.000 h 12 078 12 475 272 297 469 511 994 1,017 372 452 199 182 103 112 9 9Paddy FIeld 1000 ha 3,288 8.228 78 75 118 119 261 275 79 79 61 58 80 81 8 SDry Land 1,000 rh 8,821 8 076 94 87 161 142 235 222 292 400 41 89 S4 80 2 2Erf etivly Irrigeated AP ,000 ha 2614 2 806 6S 68 127 180 165 189 36 89 18 14 21 21 1 1Paddy F;eld 1 000 ha 2.167 2,S8B 56 60 99 116 147 167 38 89 11 12 16 17 1 1Cry Land 1 000 hn 447 418 7 6 29 14 19 22 0 0 2 2 5 4 0 0Total o mi illion 82,208 114,896 667 2,822 2,262 7,585 2,010 6.394 404 1.487 462 12661 511 1,546 9 22Industrial Output v million 27,SS6 122.295 848 1,565 1,029 2.190 828 4,192 111 908 461 1 484 205 402 10 18griculture Output Y million 18,127 6a.707 451 1,748 742 1,411 1,778 6,158 426 1.605 504 1077 264 459 9 17Crp PreductionOr,in Area 1.000 ha 10,54 9,828 251 288 894 367 847 789 346 847 158 156 87 84 5 5Grain Production 1000 ton 343885 42.668 80S 1.118 1,S55 1.982 2.9S4 8.862 687 1,016 506 620 812 844 1S 18PaddyArea 1.OOO ha 8.068 8.120 59 68 104 114 229 247 79 769 84 84 22 24 1 1 LPdd Production 1,000 ton 1s 490 22,511 841 558 687 925 1.222 1.992 254 407 213 242 116 165 8 10Wheat Area 1,000 ha 2,879 2221 82 77 119 115 281 216 40 68 40 42 24 24 2 2Wheat Production 1,000 ton 5206 7,017 14 263 249 472 514 677 59 116 96 113 86 80 3 6Corn Area 1 000 ha 1Z8e1 1,711 66 60 54 E0 1N8 127 a8 76 20 22 20 16 1 1Corn Production 1,000 ton 6 12D 6,786 196 199 252 268 544 588 171 245 56 68 76 51 a 4Rapeeed Aren 1.000 h 482 889 9 28 22 5S 86 69 7 S4 6 14 10 16 0 1Repased Production 1.000 ton 647 1,279 11 41 31 106 44 90 9 34 7 17 11 27 4 2Cotten Area 1,000 ha 252 120 5 2 29 14 36 20 0 0 12 7 5 S 1 0Cotton ProductIon 1,000 ton 95 11S 2 1 1S6 91 17 19 0 0 7 4 2 1 0 0Forat Are 1,000 he 6,811 10,872 80S S80 137 201 14 6S 145 247 6 28 39 66 7 8Wood Production 1,000 .S 8,896 8,709 1S 18 11 S 81 82 30 35 24 11 8 2 1 1Rulberry Area 1,000 he 210 298 4 8 21 28 41 57 1 2 10 14 5 6 0 0Cocoon Production ton 92,000 148,000 1.721 2,748 9,106 U3,890 18200 28.000 168 458 4.279 6,509 2.294 8,88 21 45Sill Production tomn 6,818 14,571 88 288 62 984 2,200 8.600 0 85 714 998 0 0 0 0Livestok Production

Pig* 1,000 heads 51,480 65,86S 1.160 1.817 2,120 2,528 8.766 S.480 1.120 1,609 711 1,221 519 612 19 28Pork 1.000 ton 1,64S 8,967 51 100 60 142 147 875 82 67 82 87 15 30 1 2She"p/nto 1,000 heads 7.010 5.986 101 68 82 21 106 8S 221 219 2 S 4 2 7 8Hutton ton 87 000 87.900 828 a8s 188 l88 875 818 280 1 11 28 22 26 1 1Cattle 1,000 heds 9.170 10,060 514 840 222 254 466 847 299 876 8S 66 55 62 5 6Bef ton 85.500 69,000 250 1,285 554 918 6.140 8,760 110 250 142 496 129 222 4 5Caic&mn 1.000 heads 62,848 122,480 1,126 2,287 2,994 56001 8,664 8,822 1,134 2.070 554 2.498 691 1,180 30 50Chicken meat ton 87.769 78,488 526 1 864 2.091 8.500 6.990 14.050 808 1.765 525 2 6S0 488 8a8 224 850Egs ton 168,000 471,000 3O000 6,000 25 000 18.000 S11000 85.000 8,800 7.700 50 6.400 4.000 8.000 100 200Urban Per Capita Income Y 86O 1,834 858 1,840 892 1,248 406 1.517 315 1,267 865 887 814 998 855 1.300Rural Per Capita nce om V 188 505 84 418 204 875 1E8 496 90 299 150 449 188 512 95 450Poverty Level 'Y 120 800 120 800 120 20 300 120 800 120 00 12D 800 120 800 40Percent of Rural Population S 22 8 80 10 86 4 25 7 72 62 25 8 32 5 50 7Llnder Poverty Lavel

auangyurn. NIncon end 4isnjiang are prefecture figures.Hianyang cer ony the five project countims and the city district.Shengzhna. Wudu and Yanji ba cover the project townships only.

ga

Sic_m Awricuitwe D.veloonet Proiect

Cl latotogical Data For Shenghoma Irrnhatlon Aret (Averame

l___________ Jan Feb Napr AY Jun Jul A" -S Oct Nov Doc YearRainfall (m) 15.6 15.9 31.3 71.0 119.5 119.3 186.1 140.6 169.5 82.8 34.7 16.7 1002.9(1ff9-1989)

Evporation(m) 30.1 48.1 78.6 113.6 138.4 139.0 158.7 171.8 91.3 60.5 40.4 28.8 1099.3

Tewperature(*C) 6.2 7.4 12.5 17.6 21.8 24.8 27.5 27.3 22.1 17.5 12.3 7.7 17.0(1959-1989) -

SunshineXhours) 61.0 58.6 101.4 133.7 147.8 140.2 187.6 211.5 102.9 79.0 61.9 54.7 1340.3(1959-1989)

Relative Iumidity(z) 82.7 79.5 75.3 74.5 75.3 77.7 78.5 74.2 81.9 84.1 83.5 84.4 79.3 l(1959-1989)

Source: Slchuan DP Feasibility Report, Irrigation Component, Novesber, 1991.

IC'I

gliMSichuan fariculture Oeveloatiut Project

Clfmatotooicat Data For Vudu Irrinatlon Area (Average)

Jan Feb ar _ Jun Jul Aug Oct Nov Dee Year

Rainfaltl(m) 7.6 10.0 21.2 48.4 84.0 105.1 237.4 183.6 170.9 50.4 21.2 5.9 945.7(1959-1982)

Evaqoration(m) 4.7 54.7 87.2 123.3 161.9 166.6 144.5 155.0 101.2 70.6 56.7 44.5 1210.9(1952-1982)III

Temperature(CC) 5.5 7.4 12.3 17.4 21.5 24.5 26.3 26.0 21.6 17.0 11.8 7.3 16.5(1959-1982)

SunshineChours) 79.2 69.3 94.6 118.4 131.2 139.0 169.4 180.9 91.1 75.5 74.0 76.0 1298.1(1954-1980) -

Relative Humidity(X) 76.0 76.0 74.0 74.0 72.0 77.0 83.0 84.0 82.0 83.0 79.0 80.0 78.0(1954-1970) Tl_2 en_83_0_9 0___ ____

Source: Sichuan ADP FeasibilIty Report, Irrigation Coq3onent, Novber, 1991.

F Mr.J0l

Sichuan arlculture Develoament ProLeet

C(lmatotogeoal Data For Yanml"aba irrifation Area (Averane)

I____________________ Jan Feb Mar Apr Jun Jul Aug sep Oct yow Dec Year

Rainfall(nm) 9.1 11.3 24.4 56.9 106.8 121.9 270.2 203.1 183.9 60.9 27.9 7.2 1083.3(1957 1989) - - - -

EvaporationCm) 64.9 71.7 117.6 160.4 191.3 191.8 172.0 184.1 116.4 91.6 74.4 64.6 1501.0(1957 1989)

TemperaturefC) 4.2 5.9 10.6 15.6 19.7 22.7 24.5 24.3 19.7 15.2 10.1 5.8 14.9(1957-1989) -

Sunsbfnswhours) 81.0 68.7 92.6 123.2 148.2 140.2 156.S 170.6 91.3 80.7 72.9 80.9 1306.8(19f71989) --

Relative NumidIty(X) 68.0 70.0 68.0 68.5 71.1 75.0 81.7 80.4 82.0 80.3 74.6 72.2 74.301957 1989) .- .- - ----

Source: Sichuan ADP feasibility Report, Irrigation Conponent, Novucber. 1991.

It'a'

CHINASichuan Agricultural 9evelopment Project

Project Locations............................ ................................................................

--...........- -.......----- ----- Irrigationr-- Soil Conservation Income Ceneration AgraprocessingLocation SP UP VP Ag.Sqpport

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

_in Prefecture...................

Guuw.g SericultureLWtpMv X X SericultureMarbu X X Sericulturekanchong county X X Sericutturelanch city X xPengan X X Sericulturemakhng SericultureXichong X X Sericulturevi lont SericultureVuchi Sericulture

Nianyang Prefecture.i..................x Jianyo K XSantai X XShhahong X X paper m IllVanting X X

ILZitong X X

Guangyua Prefecture

Canpi SericultureChaotian Soil Cons.dno/medc.plantJiange X X SericultureShizong fast growing treesVanGCang Alpine rushVuabai Sericulture

Oianjiang Prefecture.... ....... ,.....

Pengsui Pawlonia-toon goat/Tea Rehab. paper millOianjiang Soil cons.demo/Pawlonia-toon SericultureShizhu gall planting seric/rabbit raising rabbit hair Process.Xiushan Tea rehab/Pawlonia-toon geese raising Geese process.Vouyang gall planting sericul/goat raising gallnut/goat/process.

Total No.counties 6 5 1 12 8 21 5

(26)................................................................................................................

Source: Sichaun Project Nanegement OfficeC:%Sichsun%sar%Location.wkl

SICNMIAAUIONIiURA DIWLOIFIN U"C1SNSPMIUILIIT Eo KSIW AS INPIEEATIIO

......................................................................................................................................................................................................... I.............................. --- ------

Cntnrectlain _atlmugo. Itm onion Deign Review Contruction s54rlse'n _Nm mt _ maaaip........................................................................... ..............................................................................................................................#,,

1. Irriation.............

1. Sbwln whrg Sicbun IIIoolectric Dsign State Plnming Coission Cepitat ContructIon Sichuan qydre-olectric U SPaamll t Swrnu _uiagunt SureeProject Institute 1wib.M Nydreo Ninistry of Watcr Con wrvunV Dlviion of Sidl_ MM; Oallty onitoring Center Collectlveslectrlc design Instltute 5 Sichuan McI SP NeedqLrterreolvent county dnlgn tor 1a 1ig Prefecture IC5

2. lUhi Slhdan llprooloctric Design State Pluming Comlssion W Contruction Divilson Sicmn dro electricProject Institute; 1H11_n lnst. Ninistry of Wtwr Conservancy of Sl_camn WCI; VP Qualtty Nmitering Center IIP IIegmnt Surbe HNegaunt Sureuwnd relevant coeunty design Slcmn WC11, md Nra_yang MM Nangmnt Swam iCollectivetells

3. ranglla Sickum lydrolectric DesignProject Instituto Desion Term of Sichia Plaing Conisslon VP Headqurter V YP _ngmt sureeuJian MM Sichn wIe and Cun n MCM

4. AgfIculture Comty Oaign Office Sicbun Pluming Colsslon Tedmolog Extenslon Coeunty Agriculture Sueu Tehnology EutenslanSerlce Slchuan Agriculture an Station Station Ftilen Statlnstem Animal Hbandry SureuTeditnotWeExtesulon

S. sawd 5 Factory 0 Factory factryfactories

It. Soil Const etIon*-........... i...

1. ikaangyuan theotian Prefecture P Sichulm Soil conservation 0 eotisn Prefecture Seoil ua uan Soil Cosrtion Touisbip Government kneficlwrlesOffice Consrvation Project Office village, grsp

leadquarter

2. Olanjlug Mlanileug INS Ol nilang Soil olhaniag Soil ConervationConservation Project Office CHeadquater

3. Padeumle a anilwa Prefecture Sic n Plaming Cmission lletant Coemyss fomt OlanJI Prefecture Project Powltbipe' genicreriesloon Slivicultural Desln Toem Skid m Foses t Sueau Stem Forest Sureau forest station

4. Uest groueing OLGun mnicipalityaud hl*- ailvicultmral pluming ndYielding designing tam Shlhg district Cuanan munlclpellty s a ln rlo e1forest tere.t 1wa fuest buro...

............................................................ ......................................................................................................................- --- ..... -.*-@* ............*

CHINASICH AGRICULTUIRAL E IIET PIOJECtRESPONSIBILIII FOR SESIm AND IPlmENETATION

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

Cntruction OIperationNo. Item Design Design Review Construction Ss.ervision Manaemnt Oumership........................................................................... ,,,.. , ,,,,,, ..... ,, ... ..................

5. Callwut Qlaniang prefecture S Relevant cowitys forest Qianjian prefecture Bo eneficiariesliviculttural design tern buraus forest bureau

6. Wooc Guawwyan mmicipalIty Guaen Medicine Gua qyuan Chines Suagyuan Medicineledicine project office Adhinistration Bureau Nedicine Copany Administration Bureau Chaotian District Beneficliries

7. Chinse WaRgess County PMl Sichuan Soil Conservatien w'Jugcag county's Guang"yun Agricultural CmaAlpine Rush Office Agrluciturat bureau Bureau

11.I rm Ceneratton

1. (a). Mulberry Prefectureicity silk SlcmJn Plaming Commission Relevt nt Counties' Sfik Prefecture/city silk *eleant counties' BenflciarlesSiltkworm co_pnies Sichumn Silk Companles Cowlnes cOMpanies silk cwpenies

(b) Silkwo Retevat Counties Design Slkwm Egg Statlen county's Silk Comlanies Sliworm Egg Statien Sltlkom Eggegg station Deprtmnt Station

2. Tea Rehabi- Qlaniang Prefecture's Tea Slquan Plueing Comission Penghul County's Tealitetion Comny an Qlonjing Plaming C ny

3. Goat lianjiang Prefecturels Sichuan Pluming Comission County6s Animal Prelecture's AISB Cunty's ASB llene1loriesRaising Animl Nusndry ureau and Sicdan Animl Husbdry Bureau (AID)

Husbadry Bureaus4. Geese aising *

S. Rabbit Raising *

IV. Agroprocessing

1. Nianan Changde Engineering Consul- SPC, Slcbuan Pluming lianyg Pepr Hill City's light Industry 111rig Pqaer Mill MillPaper Nill tative company of light Comeission, Ministry of Light bureau and quality

industy ministry of China Bureau of Light Industry onitoring station

2. Peng i Pengshul Paper Nill Pnghul Paper Hill HillPaper Mill

3. Galtiut SbhgaI Datog Phermcsut. Slcmuan Pluming Cmmlssion allaiut Processing Plant County's Quality Monitorlng Galion Processing PlantProcessing fctory, Touyan, County%s Station Plant

Design Department

4. Rabbit lair Sichuan Textile Olesign Slielwn Pluming Commission Rabbit Hair Spiming County's Quality Monitoring Rabbit Hair Spuming Hill tSpiming Institute Kil Staton 11

5. Goat Sldan tight Industry * Goat Processing Plant * Goat Processing Plant Plant cProcessing institute

6. Geese m Geese Processing Plant Geese Procssng PlantProcessing

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

Sidchn Agricultural Dvelofent ProjectCounterpwrt Fwnd wources wd Aut

(IY'OD)

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

total DWa/IDA Goverment Local Prowrty Ernirked 6selProject Cost --- . ove.ruent ---- ank A-lleviation fund ContributionC. FMncut (T000) (1O0O) Sub-total Central Provincial Prefecture Courty toan fund other...........................................................................................................................................................

1. IrrigationVAricultureA. irtription

1. SP 376,270 1S8.979 143.256 133,256 10.000 74.0352. Up 639,721 303,S93 284,740 100,000 132.740 12.000 40,000 51,3883. VP 30.658 17.324 7,0W0 7,000 6.334B. Agro-support 67.606 47,021 6,370 3,822 2,548 14,215Ssb-total 1.114.25S 526,917 441.366 100,000 272,996 25.822 42.548 0 0 0 131,757 14,215.....................................................................................................................

......................................................................................................... II. Soil Co rvatlionA. Sol coervatlen Oem. as

Chiotin 20.231 9,953 2.309 2.309 140 500 1,902 5.42?alaniatn 11,S19 5,30 1.137 1.137 1.528 3.474o. forestry1. fast-growing Tree 15.9S 9,41S 1,000 1.000 1,000 4.S802. Paulosmin a Chinese too 14.242 7.855 750 750 400 5.2373. GCllnut - lS5451 7.424 500 SDO 900 6.6274. medicine Plants 10.97 S.S41 0 400 2.000 3.016S. Alphine rush 3.457 2.152 0 1.305Sth-total 91.852 47.720 5.696 0 0 0 5.696 S40 4,028 4,202 29.666 0...........................................................................................................................................

................................................................................... ....... Ill. incmm GenerationA. Iulberry 4 Cocoon Product 91,207 so,s72 0 7.000 21.1S3 12,482B. lea RehabilitatIon 6,357 2.744 0 1.500 2.113C. klvestock 01. CGot Rulsing 0

louv 12,606 6,456 1,600 1.600 SS5 4.000Pengabul 5,346 2,690 Soo 800 S40 1.3162. Geese raising 11,417 S.703 250 250 1,500 3,9643. Rbbit raising 4,677 2.690 150 150 120 1.717Sub-total 131.610 70,855 2.800 0 0 2.800 0 11,210 21,1S3 25.S92 0.................................. ...................................................................... ......... ................ ............................... .................................... VI. Agra-processing

1. Pengshui paper mill 73,046 37,680 12,000 12,000 17,366 6,0002. Fulaig paer mill 67.650 40,350 4,000 4,000 18.000 S.3003. Cattle/Goat processing 5,490 2.690 1.000 1,000 1,000 S004. Ceese Processing 12,641 5.111 1,800 800 1.000 4,230 1.SOOS. Callnut processing 10,551 5,757 0 3.462 332 1,0006. Rabbit lair Processing 31,868 16,140 3.000 3.000 9.028 2.700 1.000Sub-total 201,246 107.728 21.800 0 0 4,800 17.000 53,086 11.332 1.000 1.000 5,300.. ,__..................................................................................Total Project Cost 1.538,963 753,220 471,662 100,000 272,996 30,622 68,044 S3,626 26,570 26,355 180.015 19,515.........................................................................--..--..........................................----.....--...................-

v.CPFJID Vl

Annex L60 - able 6-1

C"tR~ ~~~~TbCHINA

SICHUAN AGRICVLTURAL OEWLOPItET PROJECTTRAINING, STUSY TOURS AND TECHNICAL ASSSTANCE

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

Totat NO. Ouratfon Total Ave. cost TotalTraflinf aress/trafnees Traines (days) Days CY/Day) Cost (TOGO)......................................................................................................................

A. TRAINING...........

1. IrrigationProJect manasement 514 30 15,420 30 463Hydrollcx Emxptlora and Oesign 204 90 18,360 30 551Irrigation Nanagme nt & 05& 312 J0 9,360 30 281Contructfon Quality Nonftorfng 35 90 3,150 30 95 1t389

2. Agri. Tech. & Extension TrainingCownty Staff at Agrf. Resarch ln tftute I 020 15 15.300 14 214

* Township Staff at Coumty Ag. Tech. Center 4.553 7 31.871 12 382Farmers at Township Ag.Te:h.Center 2044173 3 613.419 5 3,067 3,664

3. Integrated Pest Nangagmnt,Fertilftar Applfcatfon

County Staff at Agric.Research Institute 270 10 2.700 14 38Township Staff at Couty Ag. Tech. Canter 802 7 5,614 12 67Farmrs at Townshfp Ag.Tech.Center 35t100 3 105,300 5 527 632

2. Soft Conservatlon-Demonstrati on AreasCounty Staff 25 20 S00 30 1STownship Staff 80 10 800 20 i6Frmers 1O,n70 5 53.600 10 536 567-ForestryEngineerfng 18 i5 270 30 8Courty Staff 20 53 1.050 30 32Township Staff 1,492 30 44.760 20 895Ptant Protection 20 15 300 20- 6Proiect margmnt 5 15 75 20 2 942

3. Income Generation-SerifuttureFarmers 24,273 20 483,450 5 2,427Township Staff 2,090 1S 31,350 20 627Cowmty Staff 22 10 224 80 18LT University Trainfng 2 350 700 10 3,079-LivestockFarmers 37,450 5 187,250 5 936Township Staff 422 20 8.440 20 169Coumty Staff 75 30 2,250 40 90 1,195-Tea rehabilatatfonAgronomfst 6 36 216 100 22Farmers 7,800 3 23,400 5 117County Staff 80. 20 1,600 13 24 1634. AgroprocesfnaiDomestic Trainfng 1,425 30 42.750 40 1t710Foreign TA (Consultants) 6 210 1t260 2,000 2.520 4,230

Subtotal Trafnes 333,308 987 1,70S,47? 13,340Foreign Consultant 6 210 1,260 2.520

B. Study Tours1. Irrigatfon-Domestfc Tours 200 1s 3,000 100 300-Foreign Study Tours 20 i5 300 400 120 4202. Solt Conservation-Domestic Tours 120 25 3.000 80 240-Foreign Study Tours 10 60 600 500 300 5403. Income Geration-Domestfc Tours 110 15 1.6S0 100 165-Foreign Study Tours 15 20 300 500 1S0 315

Subtotal 475 1S0 8,850 1,275

Totat Training and Study Tour 333,783 1,137 1,715,589 17,135......................................................................................................................

…~~~~~~~~~~~~~~~~~~~~~~~~~~~

-61 - Annex1Table 6-2

CHINASichuan Agrecultural Development Project

Suamry of Research Topics.....................................................................................................................

Topfes ResponsIble Ouration TotalOrganizatfon (year) Cost

(TOOG).....................................................................................................................

Agricutture...........

1. Comparative experfments of the new varfetal M1anyang/Nanchong Agrfcultural 3trials--rice, corn, wheat, sweet potato, rapeseed Research Institutoand peanuts

2. FertiLizer Trfals MNanyang/Nanchong AgrfeulturalResearch Institute 3

3. Micro-nutrients experiment I 34. Improved Cultivation techniques i 35. Integrated Post Management Prov. Post Control Station 3

Subtotal 900

Sericulture...........

1. Genetic improvement of silkworms Provincfal Sericulture Institute 3 3002. Breeding of silkworm for spring rearing Southwet Agrfcultural University 1 253. Broeding of silkworm for summer/fall rearing Southwet Agricultural University 1. 254. Integrated rearing techniques for fmproving Sichuan SIlk Corporation I 25

cocoon quatity (Nanbu, Langzhong, Santai & Nelijang)5. Insect and disease control ProvincIal Sericulture Institute 3 3006. Improvement of cocoon tools Sichuan Silk CorporationClocal) 3 SO7. Improvement of rearing techniques Sichuan Silk Corporation(local) 3 SoS. Establishment of data base for production Sichuan Silk Corporation 3 72

mnagement and Information dissemination9. Improvement of cocoon drying techniques Sichuan Silk CorporationClocal) 3 SO

Subtotal 897

Livestock

1. Gosifng breeding Slchuan Agronomy Un versity 4 302. Grassland Improvenent Sichuan Ag. Unversity nd AN bureau 3 203. Diseas control--goats Animml Husbandry Bureau (Local) 3 454. Goat raising efficiency Animel Husbandry Bureau (Local) 3 26S. Rabbit Breeding Animel Husbandry Bureau CLocal) 3 256. Optimal feed formulation Animml Husbandry Bureau (Local) 1 107. Disease control--rabbits Anml Husbandry Bureau CLocal) 3 15

Subtotal 171

Solt Conservation..................

1. Alternatives to timber species Sichuan Academy of Forestry/8f 4for production of short-term benefits

2. Sillvpasture with fuelwood hedgerows Solt Cons.8ureeuWIMDE 43. Grassland Improvement Sichuan Ag. Unversity and A bureau 44. Improved tree planting techniques to enhance Slchuan Academy of Forestry/PfO 4

productivity and solt conservationS. Monitoring of Impacts of treatments on Prov.SoIl Con/INDE 4

erosion, runoff and crop yioldsSubtotat 191

.....................................................................................................................e/ Instituto of Mountain ODsaster and Envirorgent (INDE)

-62- Annex Table 7

Page 1 of 3

Sichuan Agricltural Development ProlectSummary of AaroUrocessing Component

The project includes 6 agroprocessing projects as follows:

I. PULP AND PAPER PLANT XN PENGSHUI COUNTY

1. The Project would construct a new pulp and paper plant with a capacity toproduce 10,200 tons of different types of printing paper. The project would useKenaf, an annual hibiscus grown by local farmers as raw material. The new plantwould be built next to the existing paper mill which has a capacity of 7,000 tons ofpaper per year and would be located along the Wu Jiang river, a tributaries of theYangtze River. The old plant has no alkali recovery or waste water treatmentsystem, but a new soda recovery and waste treatment system would serve both the newand old plants and would reduce existing pollution considerably. Also, as a resultof the project two other pulp and paper mills, without pollution control systems,would be closed down. A soda recovery system for treatment of the black liquor,would be used which would concentrate and burn the lignin dissolved from the fibersand recover and reuse the soda. With the use of a counter current washing system(made in China under license from Valmet of Finland) up to 95 percent of the blackliquor can be processed. Part of the white liquor from the bleaching section wouldbe recycled and added to the digestors and burned through the soda recovery system.the remaining part will go to the waste water treatment system. The waste watertreatment system would consist of a number of ponds, where flocculants would be usedto reduce suspended particles and biological treatment would reduce the BOD level.The plant would not produce highly bleached paper (printing paper in China has a lowdegree of whiteness). The amount of different chlorine-compounds released from thebleaching system would be limited by using a relatively low amount of chlorine inthe process. The Chinese environmental standard accepts up to 250 mg/literchlorine-compounds in all categories of surface water. The emission of unusedchlorine from the relatively small pulp bleaching sections into the two large riverspassing by tho two sites, has been calculated by the Sichuan Research Institute ofEnvironmental Protection (SRIEP) to have limited impact. Air pollution would becontrolled by dust collection in cyclones an SO(2) reduction by water sprays infront of the chimneys. SRIEP has calculated that the remaining emission ofpollutants would be low.

II. PULP AND PAPER PLANT IN TANGKUN. MIANYANG MUNICIPALITY

2. The Project would construct a new pulp and paper processing plant at anexisting site some 30 kilometers outside the city next to the Pu Jiang river. Theobjective of the project is to expand the production of paper made from wheat strawand kenaf as well as to relocate the existing paper processing plant from the centerof Mianyang City. The processirn plant would have a capacity to process some 24,500tons of kenaf bast and wheat straw into 10,200 tons of off-set and typing paper.Soda reco7ery, waste water and air pollution control systems similar to thosedescribed above for Pengshui, would be installed. When the new project becomesoperational, the existing white paper plant located in the city center would beclosed. The paper board plant using recycled paper at the same location, wouldstop operation before end of the year 1997 with production transferred to the newsite.

-63_ Annex Table 7

Page 2 of 3

3. The technology would be the same as for the Pengshui plant. The ChengduConsulting and Engineering Corporation of the Bureau of Light Industry has designedthe two plants and this would produce some savings in both design and procurementduring implementation.

III. RABIXT lAIR SPINNING PIANT IN SHIZNU COUNTY

4. The Project would construct a carding, mixing, and spinning plant in ShizhuCity. Semi-manual knitting equipment would be included to further increase addedvalue. The objective of the Project is to create a stable market to produce rabbithair in the county of Shizhu.. A total of 1.2 million angora rabbits would be raisedto produce 400 tons of rabbit hair per year. Knitting would be done by womenfarmers organized in small groups and working in their homes. The capacity of thespinning plant would be about 160 ton angora rabbit hair, 100 tons wool, and 66 tonsof synthetic fibers in different mixtures. Final yarn products would be 300 tons.Part of the yarn would be used for the production of knitted sweaters, with anestimated 150,000 units made by semi-manual knitting machines, and approximately3,000 handmade sweaters.

5. Training of the staff and technicians would focus on the technical operationof the spinning machines and on market development. Efforts would be made to findpartners abroad to assist in the marketing. The market for angora wool, andmixtures of angora wool with other fibers is expanding in China. The spinning plantwould have the flexibility to handle a large range of fibers according to the marketdemand, both domestic and abroad. This spinning plant with modern equipment wouldbe mainly geared for export.

6. The main concern with regard to pollution is the noise coming from thespinning mill. Chinese spinning machines have a high noise level. Two mitigatingmeasures would be undertaken: (i) the investor would import equipment with advancedspinning technology, which gives better quality yarn and makes considerably lessnoise; (ii) the building would be constructed with solid walls and roof to avoidremaining noise to disturb the neighborhood. Dust would be separated in a filter tobe placed in the air systems. Waste water would be treated by ths municipal wastewater treatment system.

IV. CALLUT PROCESSING PLINT IN YOUYAN COUNMY

7. The Project would extend an existing processing plant which at present processabout 450 tons of gallnuts into tannic acid. The objective of the Project is todevelop and to process gallnuts grown in the surrounding counties. The additionalprocessing capacity added under the project would handle an additional 800 tons ofgallnuts. Tannic acid is used as a chemical compound for a number of complexsubstances in tanning and chemical industries. The new extension would extract thetannic acid from the gallnuts with water and then concentrate and spray dry thesolution into powder. A separate line would be constructed for low temperatureextraction in order to obtain tannic acid for pharmaceutical use. The plant wouldproduce at full development about 400 tons of technical tarnic acid and 100 tons ofpharmaceutlcal quality. Present management, which has operated the existing plantfor several years, is fully conversant with the technology. The process includes awarm water counter current extraction of the tannic acid from the gallnuts. All thewater is then evaporated and the remainlng tannic acid is packed in bags. Thegallnut shells after the extraction are used mainly as fuel in the boilers. Thelevel of pollution is low, no waste water is generated (due to the high price of

_64 - Annex ITable 7

Page 3 of 3

tannic acid all water is evaporated), solid waste (shell) is burned. The existingplant has a small line (150 tons per year) for the production oftrimethoxybenzhydrazine. The waste water treatment system includes ponds andaddition of chemicals to reduce the emission of any harmful components. The missionhas requested, and the Sichuan government has agreed, that SRIEP and the Bureau ofEnvironmental Protection will review the present treatment system, and if necessaryrecommend it be improved. Additional funds have been allocated to finance suchinvestment if needed (budgeted to RMB 200,000).

8. The market for tannic acid is expanding both inside and outside China.Although the use of tannic acid in the leather industry has diminished, it has beenfound to be a suitable raw material for chemical synthesis in making pharmaceuticalproducts.

V. GOAT AND CATTLE SLAUGHTER HOUSE IN YOUYANG COUNTY

9. Youyang county has an outdated cattle slaughter house and cold storage of 300tons, but some of the basic infrastructure and the cold storage would continue to beused. The now slaughter house would process 7,000 head of cattle and 60,000 goats.It would also have two slaughter lines for the do-skinning of cattle and and thechilling of carcasses. Cattle carcasses would be de-boned and de-skinned while thegoats would be sold with the skin on, which makes handling easier and commands abetter price. The slaughter houses would include a waste water treatment systemincludng fat traps and biological treatment systems. The plants will also beconstructed to collect as much byproducts inside the slaughterhouse as possible,such as blood and meat/fat parts.

10. The proposed slaughter house would create a market to absorb and process thegoats which would be produced under the project. The slaughter house has beendesigned by the Design Department of the Research Institute of the Bureau of LightIndustry in Chengdu and would be constructed according to national standards.

VI. GEESE PROCESSING PLANT IN XIUSHAN COUNTY

11. The Project would construct a new geese slaughter house to processfeathers/down and to produce frozen and deboned goose meat and liver. The plantwould have cold storage with a nominal capacity of 300 tons. Equipment for theslaughter and processing of geese would be imported. The plant would have a wastewater treatment system to handle the effluent before the water is released into thenearby river.

12. The geese processing plant is expected to slaughter about 800,00 geese per year,an equivalent to about 500 head per hour. The objective of the project is toprocess and pack most of the geese produced by the project and to market theprocessed geese to domestic and export markets. Geese by-products, such as down andliver, would also be exported when feasible.

- 65- Annex 2'able T-1

ChinaSichuan Agriculture Development Project

Project Cost Summary

Yuan usS.............................. ................................................ .............

Local Foreign Total Local Foreign Total.............................. ................................................ .............

A. Irrigation1. SP Irrig. 228733 77173 305906 42515 14344 568602. UP Irrig. 370672 136099 506771 68898 25297 941953. YP Irrig. 20539 5481 26020 3818 1019 48364. SP Agr. Support 12535 19661 32196 2330 3654 59845. UP Agr. Support 8839 14411 23250 1643 2679 43226. VP Agr. Support 862 1345 2207 160 250 410

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

Sub-Total 642181 254170 896351 119364 47244 166608B. Soil Conservation

1. GY Demo Area 13300 3557 16857 2472 661 31332. QJ Demo Area 7858 1841 9699 1461 342 18033. Paul. & Toon 11628 2041 13669 2161 379 25414. Gall Planting 10515 2765 13280 1954 514 2468S. Chinmse Medicine 7171 1666 8836 1333 310 16426. Alphine Rush 2191 1542 3733 407 287 6947. Fast Gr. Trees 14880 1790 16669 2766 333 3098

. ............................. ...........................Sub-Total 67542 15202 82744 12554 2826 15380C. Income Generating Proj.

1. Mulberry & Coccon 62529 19885 82414 11623 3696 153192. Tea Rehab. 3903 1708 5611 725 317 10433. YY Goat Raising 8662 2714 11376 1610 505 21154. PS Goat Raising 3572 1267 4840 664 236 900S. Geese Raising 8293 2030 10322 1541 377 19196. Rabbit Raising 3234 977 4211 601 182 783

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

Sub-Total 90193 28581 118774 16764 5313 22077D. Agroprocessing

1. Paper Mitl(MY) 33375 41455 74830 6204 7705 139092. Paper Mitt(PS) 34276 35836 70112 6371 6661 130323. Rabbit Hair Proc. 13498 14766 28264 2509 2745 52544. Gallnut Proc. 5945 5815 11760 1105 1081 21865. Goat Proc. 2544 2884 5428 473 536 10096. Geese Proc. 4977 6163 11140 925 1146 2071

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

Sub-Total 94616 106919 201535 17587 19873 37460.............................. ................................................ .............

Total BASELINE COSTS 894531 404872 1299404 166270 75255 241525Physical Contingencies 65497 32968 98465 12174 6128 18302Price Contingencies 127268 22284 149552 23656 4142 27798

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

Total PROJECTS COSTS 1087296 460124 1547420 202100 85525 287625==uc::aBa:zgu-===::z:r=:U s:s: :===s:===:==z=====u=======:==

.............................................................................................Vatues Scaled by 1000.0 - 4/19/1992 16:41

-66- Annex 2

ChinaSichuan Agriculture Oevelopment Project

Project Cost Suwmary

X TotalX Foreign easeExchange Costs

A. Irrigation1. SP Irrig. 25 242. WP Irrig. 27 393. YP Irrig. 21 24. SP Agr. Support 61 2S. UP Agr. Support 62 26. YP Agr. Support 61 0

Sub-Total 29 69S. Soil Conservation

1. GY Demo Area 21 12. OJ Demo Area 19 13. Paul. & Toon 15 14. Gall Planting 21 15. Chinese Medicine 1Q 16. Alphine Rush 41 07. Fast Gr. Trees 11 I

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

Sub-Total 18 6C. Income Generating ProJ.

1. Mulberry & Coccon 24 62. Tea Rehab. 30 03. YY Goat Raising 24 14. PS Goat Raising 26 0S. Geese Raising 20 16. Rabbit Raising 23 0

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

Sub-Total 24 90. Agroprocessing

1. Paper Mitt(CY) 55 62. Paper Mili(PS) 51 53. Rabbit Hair Proc. 52 24. Gallnut Proc. 49 15. Goat Proc. 53 06. Geese Proc. 55 1

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

Sub-Total 53 16.................. .

TotaL BASELINE COSTS 31 100Physical Contingencies 33 8Price Contingencies iS 12

,.._......i;...........

Total PROJECTS COSTS 30 119

Values.Scaed.b.. 100.0..... 1. /1992... 16:4..........1

- 67 - Annex 2

China Table MSichuan AgricuLture Development Project

Yuan

Project Components by Year

Base Costs Total..................................................................................

1992 1993 1994 1995 1996 1997 Yuan USS

A. Irrigation1. SP Irrig. 73474 71477 68416 52430 40109 0 305906 568602. WP Irrig. 77428 104386 93248 101037 84082 46591 506771 941953. YP Irrig. 9014 11376 5630 0 0 0 26020 48364. SP Agr. Support 13008 8132 9956 573 526 0 32196 59845. WP Agr. Support 9347 5903 7025 513 463 0 23250 43226. YP Agr. Support 285 565 1295 63 0 0 2207 410

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

Sub-total 182556 201839 185570 154616 125180 46591 896351 166608B. Soil Conservation1. GY Demo Area 2997 4744 4537 3077 1502 0 16857 31332. QJ Demo Area 2818 1791 2169 2041 880 0 9699 18033. Paul. g Toon 2192 5389 5103 691 293 0 13669 25414. Gall Planting 2228 6115 4029 690 218 0 13280 24685. Chinese Medicine 3239 3674 1924 0 0 0 8036 16426. Atphine Rush 1190 1453 907 182 0 0 3733 6947. Fast Gr. Trees 5000 5000 4100 1619 950 0 16669 3098

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

Sub-total 19664 28165 22769 8301 3844 0 82744 15380C. Income Generating Proj.1. Mulberry & Coccon 28765 37088 14349 2212 0 0 82414 153192. Tea Rehab. 2798 2403 410 0 0 0 5611 10433. YY Goat Raising 4936 3772 2621 47 0 0 11376 21154. PS Goat Raising 2496 1564 685 95 0 0 4840 9005. Geese Raising 3995 3500 1895 931 0 0 10322 19196. Rabbit Raising 1830 1864 438 79 0 0 4211 783

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

Sub-total 44820 50191 20398 3364 0 0 118774 220770. Agroprocessing1. Paper MiIt(MY) 16194 32744 21692 4200 -0 -0 74830 139092. Paper fill(PS) 16790 28357 18765 4200 -0 -0 70112 130323. Rabbit Hair Proc. 5548 13544 6172 3000 0 0 28264 52544. Gallnut Proc. 2672 5041 2547 1500 -0 -0 11760 21865. Goat Proc. 1244 1826 1958 400 0 0 5428 10096. Geese Proc. 3441 3161 3888 650 0 0 11140 2071

Sub-total 47888 84674 55023 13950 -0 -0 201535 37460... ..... ................... .................... ......................................................... ....

Total BASELINE COSTS 294928 364870 283760 180232 129024 46591 1299404 241525Physical Contingencies 20622 27449 20976 14196 11242 3980 98465 18302Price Contingencies 7205 25312 34693 34570 . 32852 14919 149552 27798

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

Total PROJECT COSTS 322754 417631 339429 228997 173118 65490 1547420 287625

Taxes 0 0 0 0 0 0 0 0Foreign Exchange 108667 150636 104433 45990 36866 13532 460124 85525

.................................................................................................................Vatues Seated by 1000.0 4719/1992 16:43

-68- Annex 2Table 1-4


Projects Components by Year

Totals Including ContingenciesYuan

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

1992 1993 1994 1995 1996 1997 Total:unuuuuuu:-au:c====:su==:::=3======-=g3 -uE3uuinmuea3us.:c::::g_

A. Irrigation1. SP Irrig. 81606 82880 83506 67667 54442 0 3701002. WP Irrig. 85985 121057 113248 128887 112487 65490 6271553. YP Irrig. 10039 13333 6954 0 0 0 303264. SP Agr. Support 14042 9293 11393 662 635 0 360255. UP Agr. Support 10082 6713 8037 593 558 0 259846. YP Agr. Support 321 644 1470 73 0 0 2508

,......................................................................

Sub-Total 202075 233920 224609 197881 168122 65490 1092098

B. Soil Conservation1. GY Demo Area 3189 5344 5346 3800 1948 0 196282. QJ Demo Area 3002 2023 2567 2540 1147 0 112783. Paul. & Toon 2336 6071 6019 855 381 0 156624. Call Planting 2380 6863 4742 866 284 0 151355. Chinese medicine 3476 4143 2243 0 0 0 98626. Alphine Rush 1270 1614 1049 220 0 0 41537. Fast Cr. Trees 5373 5664 4867 2000 1236 0 19140

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

Sub-Total 21027 31721 26832 10282 4996 0 94856

C. Income Generating Proj.1. Mulberry & Coccon 30803 41647 16857 2702 0 0 920102. Tea Rehab. 3001 2685 480 0 0 0 61663. YY Goat Raising 5276 4217 3086 56 0 0 126354. PS Goat Raising 2671 1748 801 113 0 0 53335. G e e Raising 4290 3932 2229 1159 0 0 116106. Rabbit Raising 1967 2071 519 94 0 0 4652

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

Sub-Total 48009 56300 23972 4124 0 0 132405

D. Agroprocessing1. Paper Mitt(MY) 17451 36996 25325 5031 -0 -0 848032. Paper Mill(PS) 20322 32016 21856 5031 -0 -0 792253. Rabbit Hair Proc. 5999 15382 7143 3594 0 0 321184. Gallnut Proc. 2869 5687 2941 1797 -0 -0 132935. Goat Proc. 1324 2055 2249 479 0 0 61076. Geese Proc. 3679 3555 4502 779 0 0 12515

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

Sub-Total 51644 95690 64017 16710 -0 -0 228061

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

Total PROJECTS COSTS 322754 417631 339429 228997 173118 65490 1547420

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

Vatues Seated by 1000.0 4/19/1992 16:43

- 69 -Annex 2

China Table 1-5Sichuan Agriculture Devalopment Project

Projects Components by Year

Totals Including ContingenciesUSS

1992 1993 1994 1995 1996 1997 Total

A. Irrigation1. SP Irrig. 15168 15405 15521 12577 10119 0 687922. UP Irrig. 15982 22501 21050 23957 20908 12173 1165713. YP Irrig. 1866 2478 1293 0 0 0 56374. SP Agr. Support 2610 1727 2118 123 118 0 6696S. UP Agr. Support 1874 1248 1494 110 104 0 48306. YP Agr. Support 60 120 273 14 0 0 466

Sub-Total 37560 43480 41749 36781 31249 12173 202992

S. Soil Conservation1. GY Demo Area 593 93 994 706 362 0 36482. OJ Deo Area 558 376 477 472 213 0 20963. Paul. & Toon 434 1128 1119 159 71 0 29114. Gall Planting 442 1276 881 161 53 0 28135. Chinese Medicine 646 770 417 0 0 0 18336. Alphine Rush 236 300 195 41 0 0 772T. Fast Or. Trees 999 1053 905 372 230 0 3558

Sub-Total 3908 5896 4987 1911 929 0 17631

C. Income Cenerating Proj.1. Mulberry & Coccon 526 7741 3133 502 0 0 171022. Teo Rehab. 558 499 89 0 0 0 11463. YT Goat Raising 981 784 574 10 0 0 23494. PS Goat Raising 496 325 149 21 0 0 991S. Geese RaIsing 797 731 414 215 0 0 21586. Rabbit RaIsing 366 385 97 17 0 0 865

Sub-Total 8924 10465 4456 767 0 0 24611

D. Agroprocessing1. Paper NfIt(CY) 3244 6877 4707 935 -0 .0 157632 Paper Nill(PS) 377 5951 4063 935 -O -0 147263. Rabbit Hair Proc. 1115 2859 1328 668 0 0 59704. Calinut Proc. 533 1057 547 334 -0 -0 2471S. Coat Proc. 246 382 418 89 0 0 11356. Geese Proc. 684 661 837 145 0 0 2326

Sub-Total 9599 17786 11899 3106 .0 .0 42391

Total PROJECTS COSTS 59992 77627 63091 42565 32178 12173 287625

........................................................................................................Values Seated by 1000.0 4/19/1992 16:43

_ 70 -Annex 2

Sichwn T4r1cult oable 2-1l AUmfrf.UIttuC Oevetcp.snt Proj.ctSury Accounts Cost SuLry

Yuan .USS XTotal........, ,,,,,,,.,..................... ....................... --%- Foreo so"Local Forelin Total Local Foregn Total Exchnge Costs

............................ I... ................................. ...............................................

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

A. Lwi Acqfisotfian 60758 0 60758 11293 0 lim 0 5B. Civft Works

1. Irrigation Vorks 418043 142253 560296 77703 26441 104144 25 432. On-Farm Works 9802 10993 109016 18220 2043 20243 10 83. Sufldfng. an Plant 58356 17459 75815 10847 3245 14092 23 64. Rural Roed 13047 3399 16446 2425 d2 3057 21 1

*-;; . -_...... ;* .................. .................. ................................................................ .

" -Total 87469 174104 76173 10915 32361 141556 23 55C. Frm Labors 43867 0 43867 8154 0 8154 0 3D. Naterfals

I *Construction Naterfals 9366 23693 33059 1741 4404 6145 n 32. Breedng Stock 9s 1s15 9073 1349 337 1687 20 13. Fertilizers 11594 2728 38883 2155 son 72Z7 70 34. Pestfefdis 2906 11625 14531 540 2161 2701 S0 15. S , Egms 15433 0 15433 2869 0 2869 0 16. Other Nterfal 3626 36 3662 674 7 681 1 0

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

SubTotal so5ss 64456 114641 9325 1196 21309 51 14E. Machin ry and Equipent

1 Comntruction 3142 12568 11o s54 2336 2920 80 12. Irrigation OaN 1178 4711 5888 219 876 1094 80 03. Offfce 4926 6396 11322 916 1189 2104 56 14. Processng 2703 96399 124053 5140 17918 23058 78 105. PM" aN Motors 3710 s637 12367 690 1609 2299 70 16. Furnftures 910 0 910 169 0 169 0 07. Lab Equfpmmnt 853 3287 4140 159 611 77 79 08. Form Toos 2846 712 3558 529 132 661 20 09. Other Produetive Equfp 23782 5946 29728 4421 1105 5526 20 2

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

tub-Total 69001 13867 207676 1826 25776 38602 66 15F. Vehicles

1. Passengr 108 432 540 20 80 100 s0 02. Trucs 2466 9864 12330 458 1833 292 80 13. ON Vehfles 0 0 0 0 0 0 0 04. Utitity Vehicles 1906 7624 9530 354 1417 lm 80 1

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

MabTotal 4480 17920 22400 33 3331 4164 80 2G. Instftutfonal Dev Y *S

1. Training 8034 7689 157 149n 1429 29 49 12. Technical Assistance 462 1132 1594 86 210 296 71 03. Resrch 1166 896 2062 217 166 383 43 0

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

Sub-Total 9662 9n7 19378 1796 1806 3602 50 1N. Design, Enginering 9 SW 25662 0 25662 4770 0 4770 0 2t. Acsinistration & Npt 12492 0 12492 5232 0 2m 0 1J. Workfng Capital 25776 0 25776 4791 0 471 0 2K. Construction Tax 5180 0 5180 963 0 93 0 0

Total NSELIKE COSTS 894531 4048n 1299404 166270 75255 241525 31 100Physical Contingences 65497 32968 98465 12174 6128 1802 33 aPrice Contingenies 127268 22284 149552 3656 4142 277" 15 12

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

Total PROJECTS COSm 1087296 460124 1547420 202100 5525 287625 30 119

................................................................................................................Vtues Seated by 1000.0 - 5/1210IM 12:49

Annex 2- 71- T81;-

ChinaSichuan Agriculture Development ProjectSumnury Account by Project Cwponent

Yuan

SP WP YP SP Agr. WP Agr. YP Agr. GY Demo QJ DemoIrrig. Irrig. Irrig. Support Support Support Area Area

1. INVESTMENT COSTS....................

A. Land Acquisition 15000 35158 1175 0 0 0 16 15B. Civit Works1. Irrigation Works 180002 362316 17978 0 0 0 0 02. On-Farm Works 58502 37854 4754 0 0 0 4855 21363. Buildings and Plant 0 0 0 7817 5425 563 330 3404. Rural Roads 9264 0 0 0 0 0 0 0

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

Sub-total 247768 400170 22732 7817 5425 563 5185 2476C. Farm Labors 0 0 0 0 0 0 4803 37140. Materials1. ConstructIon Haterials 12259 19805 417 0 0 0 566 02. Breeding Stock 0 0 0 0 0 0 0 03. Fertilizers 0 0 0 10500 8400 700 751 5424. Pesticides 0 0 0 6300 3360 420 1768 6635. Seeds, Eggs 0 0 0 0 0 0 1898 11896. Other Material 0 0 0 0 0 0 0 0

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

sub-total 12259 19805 417 16800 11760 1120 4983 2395E. Nachinery and Equipment1. Construction 8461 7148 102 0 0 0 0 02. Irrigation OUI 3513 2218 157 0 0 0 0 03. Office 2582 4687 78 367 287 74 235 2624. Processing 0 0 0 :396 216 63 0 05. Puwps and Motors 564 11650 153 0 0 0 0 06. Furnitures 0 0 0 0 0 0 0 07. Lab Equipment 0 0 0 1411 1611 43 0 08. Farm Tools 0 0 0 424 402 36 137 79. Other Productive Equlp 0 0 0 0 0 0 0 O

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

Sub-total 15120 25702 490 3598 2516 216 372 269F. Vehicles1. Passenger 0 0 0 0 0 0 90 902. Trucks 3150 0 105 735 525 0 100 1003. ON Vehicles 0 0 0 0 0 0 0 04. Utility Vehicles 4252 3223 168 300 480 120 0 0

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

Sub-total 7402 3223 273 1035 1005 120 190 190G. institutional Dev & Supp1. Training 1890 1376 66 2181 1865 166 373 3092. Technical Assistance 0 0 0 0 0 0 0 03. Research 0 0 0 450 450 0 130 61

.............................. ;..................................................

Sub-total 1d90 1376 66 2631 2315 166 503 370H. Design, Engineering & Sup 4089 17328 658 0 0 0 110 1601. Adminfstration & Hgmt 2377 4009 208 315 230 22 695 110J. Working Capital 0 0 0 0 0 0 0 0KL Construction Tax 0 0 0 0 0 0 0 0

Total BASELINE COSTS 305906 506771 26020 32196 23250 2207 16857 9699Physical Contingencies 27129 43444 2353 2033 1432 140 77m 452Price ContIngencies 37065 76940 1953 1796 1301 160 1994 1128

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



Values Scaled by 1000.0 4/1911992 16:41

- 72 -

China Amnex 2Sichuan Agriculture Oveltpmmnt Project Tsble 2-3Sumury Account by Project Conponent

Yuen

Paut. , G tl Chinese Alphin FPast or. Nultbrry To rY Goat PS GoatToon Ptantifng Medicine Rush Trees 4 Coccon Remb. Raising Raising


A. Land Acquisition 1376 750 250 202 0 3120 10 0 0B. Civil Uocks1. Irrigption Vorks 0 0 0 0 0 0 0 0 02. On-Frm Works 0 0 0 0 0 0 915 0 03. Buildings and Plant 0 0 953 0 360 22782 233 1976 80S4. Rural Ros 0. 0 0 0 1980 0 65 0 0

.............................. ;i................................................ ......

Sub-totat 0 0 0 2340 278 14 1976 805C. FPrm Labors 8600 mo 2539 1245 9095 3795 940 300 1230. Materiats1. Construction Materisls 0 0 0 0 0 0 12 0 02 Broeding Stock 0 0 0 0 0 0 0 5060 2060I. Fertfilers 1193 239 2314 1336 1042 5577 2188 625 3724. Pesticides 526 255 129 425 73 460 10S 46 05 Seeds, Eggs 220 250 1878 270 2478 S750 600 480 1966. Other Naterial 0 0 0 0 0 1165 0 S01 80

.......... ;;................................................................................

Sub-total 1939 2884 4321 2031 3594 12952 2904 6912 2709E. Machiner ard Equipment1. Construction 0 0 0 0 0 0 0 0 02. Irrigatfln alM 0 0 0 0 0 0 0 0 03. Office 343 232 71 14 135 959 4S 271 2234. Proessing 0 0 0 0 0 1915 0 110 05. Pups and lotors 0 0 0 0 0 0 0 0 06. Furnitures 0 0 0 0 1 682 1 37 07. Lab Equipment 0 0 0 0 0 0 0 139 998. Form Toots 573 833 73 2S 219 747 82 0 09. Other Productiv Equlp 0 0 0 0 5 29723 0 0 0

,......................... z............................................................

Sub-total 916 1065 144 39 360 34026 128 557 322F. Vehicles1. Pssenger 0 0 0 0 0 0 0 0 02. Trucks 0 0 240 60 200 2660 120 260 2003. OB Vehictls 0 0 0 0 0 0 0 0 04. Utility Vehicles 300 300 0 0 0 0 0 0 0

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

Sub-totat 300 300 240 60 200 2660 120 260 2000. Institutional 1ev 0 Supp1. Training 102 232 154 17 3So 2175 I" 485 3002. Technicat Assistance 215 141 0 108 0 0 38 181 413. Research 0 0 0 0 120 400 0 103 80

................... ii........ i....... i;..................................................

Sub-totat 318 3 154 125 476 2S75 184 769 421H. ODsfln, Enfineern9l S p 20 18 15 0 300 0 45 206 1121. Adafnfstration S Mgut 200 170 200 31 305 503 67 395 147J Uorking Capital 0 0 0 0 0 0 0 0 0K Construction Tax 0 0 0 0 0 0 0 0 0

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

Total BASELINE COSTS 13669 13280 8836 3733 16669 82414 5611 11376 4840Physical Contingencaes 588 598 411 169 779 3811 265 5OO 208Price Continencies 1405 1256 614 250 1691 5785 289 759 285

...........................................................................................Total PROJECT COSTS 15662 15135 9862 4153 19140 92010 6166 12635 5333

Taxes 0 0 0 0 0 0 0 0 0Poreign Exchange 2213 2986 1806 1670 1959 21398 1829 2908 1351

...........................................................................................................................Values Scaled by 1000.0 4/19/1992 17:09

_ 73 -

Annex 2ChinaTO 4

Sichuan Agriculture Oevelopment ProjectSuutary Account by Project Component

Yuan

RabbitGeese Rabbit Paper Paper Hair Galtnut Goat Geese

Raising Raising Mitt(MY) MiltCPS) Proc. Proc. Proc. Proe.*-uauaan.uuuuuunuuuu.auuaUflUuufuuuuUuUuUUuuUsuUu-"-------auUnuaUUUs-- _*uUUaUu


A Land Acquisition 0 0 980 1820 300 200 65 3208. Civil Works

1. Irrigation Works 0 0 0 0 0 0 0 02. On-farm Works 0 0 0 0 0 0 0 03. 8uildings and Plant 2275 1455 12408 11594 1862 1924 915 17974. Rural Roads 0 0 1350 3500 227 60 0 0

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

Sub-total 2275 1455 13758 15094 2089 1984 915 1797C. Farm Labors 867 105 0 0 0 0 0 00. Materials1. Construction Haterials 0 0 0 0 0 0 0 02. Broeding Stock 954 1000 0 0 0 0 0 03. Fertilizers 653 110 0 0 0 0 0 04. Pesticides 0 0 0 0 0 0 0 05 Seeds. Eggs 196 28 0 0 0 0 0 06. Other Material 1557 359 0 0 0 0 0 0

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

Sub-total 3359 1496 0 0 0 0 0 0E. Machinery and Equipment1. Construction 0 0 0 0 0 0 0 02. Irrigatfon OSH 0 0 0 0 0 0 0 03. Office 288 169 0 0 0 0 0 04. Processing 1980 120 47586 39744 17145 5630 2464 56835 Puops and Motors 0 0 0 0 0 0 0 06- Furnitures 96 93 0 0 0 0 0 07. Lab Equipment 266 71 200 200 30 0 50 208. Farm Tools 0 0 0 0 0 0 0 09. Other Productive Equip 0 0 0 0 0 0 0 0

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

Sub-total 2630 453 47786 39944 17175 5630 2514 5703F. Vehicles

1. Passenger 180 180 0 0 0 0 0 02. Trucks 120 0 630 840 315 630 595 7453. OSH Vehfcles 0 0 0 0 0 0 0 04. UtilIty Vehicles 60 0 150 0 0 176 0 0

.......... i;......................................................................

Sub-total 360 180 780 840 315 806 595 745G. Institutional Oev 8 Supp

1. Training 489 230 no 900 626 340 144 792. Technical Assistance 23 7 0 0 0 0 120 7203. Research 70 198 0 0 0 0 0 0

,.................. ;.............................................................

Sub-total 582 435 720 900 626 340 264 799H. Design, Engineering & Sup 44 32 932 783 391 144 70 205

1. Administration & NMmt 204 5S 750 ?47 354 156 105 137J Working Capital 0 0 7044 8042 6140 2500 800 1250K. Construction Tax 0 0 2080 1942 874 0 100 184

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

Total BASELINE COSTS 10322 4211 74830 70112 28264 11760 5428 11140Physical ContInsencies 475 184 4961 4376 1781 658 295 645Prfie Contingencies 813 256 5012 4737 2072 875 384 730

............... .......... ...... i..........................................



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

Values Scaled by 1000.0 4/19/1992 16:42

_ 74 -

China ATnez 2Sichuan Agricuiture Oevetopment Project TAblre 2w-;Suffary Account by Project Component

Yuan

Physical PriceContingencies Contingencies

.... ..... ;........................

Total X Amount X Amount

I. INVESTMENT COSTS....................

A Land AcquisItion 60758 0 0 13 7888B. Civil Works1. Irrigation Works 560296 10 56030 14 767702. On-Farm Works 109016 10 10506 19 201983. Buildings and Plant 75815 6 4455 7 50844. Rural Roads 16446 8 1286 12 1937

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

Sub-total 761573 9 72277 14 103988C. Farm Labors 43867 5 2193 11 50000. Materials1. Construction Materials 33059 10 3277 10 31582. Breeding Stock 9073 5 454 7 6513. Fertilizers 38883 5 1944 5 20744. Pesticides 14531 5 727 6 8005. Seeds, Eggs 15433 5 m 9 14006. Other Material 3662 5 183 12 425

............... ;'....................... ...... ........... .................................

Sub-total 114641 6 7356 7 8507E. Machinery and Equipment1. Construction 15710 5 786 4 6922 Irrigation OM 5888 5 294 11 6553. Office 11322 5 602 4 4134. Processing 124053 9 11145 5 5869S. Pumps and Motors 12367 5 618 13 15516. Furnitures 910 5 45 7 627. Lab Equipment 4140 9 360 4 162S. Farm Tools 3558 6 221 7 2409. Other Productive Equip 29728 5 1486 8 2336

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

Sub-total 207676 7 15559 6 11979F. Vehicles1. Passenger 540 5 27 2 122. Trucks 12330 5 576 3 4273. O8M Vehicles 0 0 0 0 04. Utility Vehicles 9530 5 476 5 431

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

Sub-total 22400 5 1079 4 871C. Institutional Dev 8 Supp1. Training 15723 0 0 7 11182. Technical Assistance 1594 0 0 5 733. Research 2062 0 0 9 190

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

Sub-total 19378 0 0 7 1381H. Design, Engineering & Sup 25662 0 0 14 35111. Administratfon & Mgmt 12492 0 0 13 1565J Working CapitaL 25776 0 0 17 4403K. Construction Tax 5180 0 0 9 458

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

Total BASELINE COSTS 1299404 8 98465 12 149552Physical ContIngencies 98465Price Contingencies 149552 7 10797

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

Total PROJECT COSTS 1547420 7 109262 10 149552

Taxes 0 0 0Foreign Exchange 460124 8 34734

.............................................................................................Values Seated by 1000.0 4/19/1992 16:42

- 75 -

Annex 2China sable 2-6

Sichuan Agriculture Development ProjectYuan

Summary Accounts by Year

Base Costs.......................................................................

1992 1993 1994 1995 1996 1997 Totaluanalanuuaauu1uauuuuuuauauuuuuuuumuuumuuauaaw-JuDu-----u------amu.uu.wuu

1. INVESTMENT COSTS...................

A. Land Acquisition 16407 13694. 11519 9067 6906 3164 60758B. Civil Works

1. Irrigation Works 106499 124525 117720 108748 80333 22471 5602962. On-Farm Works 13782 18165 18698 20779 23586 14006 1090163. Buildings and Plant 32314 28354 13432 1665 50 0 758154. Rural Roads 3803 4582 3734 2195 2132 0 16446

Sub-total 156399 175625 153584 133387 106101 36477 761573C. Farm Labors 8121 17228 12825 4105 1588 0 438670. Materials

1. Construction Materials 7062 8467 6747 4900 4099 1784 330592. Breeding Stock 3752 3052 2022 248 0 0 90733. Fertilizers 13884 9023 15305 536 135 0 388834. Pesticides 5412 1527 6563 712 316 0 145315. Seeds. Eggs 5146 6303 3041 636 307 0 154336. Other Material 518 1351 1396 396 0 0 3662

Sub-total 35774 29723 35074 7429 4857 1784 114641E. Machinery and Equipment

1. Construction 4957 6399 4092 164 100 0 157102. Irrigation O0M 1012 1659 905 94 758 1459 58883. Office 6695 4041 585 0 0 0 113224. Processing 27006 66700 29946 400 -0 *0 124053S. PuTPs and Motors 509 2354 2417 3764 2424 898 123676. Furnitures 431 416 .35 28 0 0 9107. Lab Equipment 659 3419 62 0 0 0 41408. Farm Tools 1494 1552 413 68 31 0 35589. Other Productive Equip 7582 14836 7086 223 0 0 29728

Sub-total 50345 10137' 45542 4742 3313 2357 207676F. Vehicles

1. Passenger 360 180 0 0 0 0 5402. Trucks 5132 5542 1655 0 0 0 123303. O8v VehicLes 0 0 0 0 0 0 04. Utility Vehicles 4204 4364 238 0 0 724 9530

Sub-total 9696 10086 1893 0 0 724 22400G. Institutional Dev & Supp

1. Training 5820 5117 2078 1496 1047 165 15722. Technical Assistance 558 5 (. 452 12 10 0 15943. Research 498 630 331 388 215 0 2062

Sub-total 6876 6209 2861 1896 1271 165 19378N. Design, Engineering & Sup 7325 4;79 4216 4272 3711 1559 256621. Administration & Mgmt 2891 3491 2690 1783 1277 360 12492J. Working Capital 0 0 12226 13550 0 0 25776K. Construction Tax 1094 2757 1329 *0 -0 -0 5180

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

Total BASELINE COSTS 294928 364870 283760 180232 129024 46591 1299404Physical Contingencies 20622 27449 20976 14196 11242 3980 98465Price Contingencies 7205 25312 34693 34570 32852 14919 149552

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

Total PROJECT COSTS 322754 417631 339429 228997 173118 65490 1547420

Taxes 0 0 0 0 0 0 0Foreign Exchange 108667 150636 104433 45990 36866 13532 460124

......................................................................................................Vatues Scated by 1000.0 4/19/1992 16:42

-76-

China Annex 2Sichuan Agricultute Development Project Table T-

Yuan

Surmmary Accounts by Year

Foreign Exchange

% Amount

1. INVESTMENT COSTS...................

A. Land Acquisition 0 0B. Civil Works

1. Irrigation Works 25 1422532. On-Farm Works 10 109933. SuildIngs and Plant 23 174594. Rural Roads 21 3399

Sub-total 23 174104C. Farm Labors 0 00. Materials

1. Construction Haterials 72 236932. Breeding Stock 20 18153. Fortilizers 70 272884. Pesticides 80 1162S5. Seeds, Eggs 0 06. Other Material 1 36

Sub-total 56 64456E. Machinery and Equipment

1. ConstructIon 80 125682. Irrigation OSM 80 47113. Office 56 63964. Processing 78 963995. PUiTS and Motors 70 86576. Furnitures 0 07. Lab Equipment 79 32878. Farm Tools 20 7129. Other Productive Equip 20 S946

Sub-total 67 138675F. Vehicles

1. Passenger 80 4322. Trucks 80 98"63. OCW Vehicles 0 04. Utility Vehicles 80 7624

Sub-total 80 17920G. Institutional Dev & Supp

1. Trainlr.g 49 76892. Technical Assistance 71 11323. Research 43 896

Sub-total 50 9t17H. Design, Engineering & Sup 0 01. Administration & Mgmt 0 0J. Working Capital 0 0K. Construction Tax 0 0

Total BASELINE COSTS 31 404872Physical Contingencies 33 32968Price Contingencies 15 22284

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

Total PROJECT COSTS 30 460124*asaauauumauuu

Taxes 0 0Foroign Exchange 100 460124

V.....................................................Vatues Scalod by 1000.0 4/19/1992 16:42

- 77 -

Annex 2China 'Table -2-

Sichuan Agriculture Development ProjectSummary Accounts by Year

Totals Including ContingenciesYuan

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

1992 1993 1994 1995 1996 1997 TotalUU3UUUinUUUU*UUUUUUS.USUUUUUU3SU.UU3UUUUUU3UUU.UUUSUUUUUUUZUUSUUUUU-w

1. INVESTMENT COSTS.................... ......................

A Land Acquisition 16900 14878 13142 10861 8686 4179 68645B. Civil Works

1. Irrigatfon Works 120023 146737 144998 140508 108842 31989 6930962. On-Farm Works 15513 21459 23175 27079 32324 20169 1397203. Buildings and Plant 35110 32168 15959 2053 6S 0 853554. Rural Roads 4193 5279 4516 2816 2864 0 19669

Sub-TataL 174839 205643 188648 172456 144095 52157 937839

C. Farm Labors 8783 19654 15363 5163 2097 0 510600. materials

1. Construction Materials 7875 9706 8020 6111 5355 2426 394932. Breeding Stock 4041 3444 2386 307 0 0 101783. Fortilizers 14792 9965 17345 633 167 0 429014. Pesticides 57S7 1667 7403 840 390 0 16057S. Seeds, Eggs 5565 7191 3643 800 406 0 176046. Other Material 561 1540 1671 498 0 0 4270

manUUUEUU3UUlUUUU2=fUu3canonsUfflaUUUfnaU8UUS

Sub-Total 38591 33513 40468 9189 6317 2426 130504

E. Machinery and Equipment1. Construction 523 6984 4615 193 123 0 17t882. irrigation O01 1077 1811 1021 111 935 1882 68373. Office 7157 4510 671 0 0 0 123384. Processing 29684 75711 35193 479 *0 *0 1410675. PLps and Motors 543 2584 2748 447S 3018 1169 145366. Furnitures 466 475 42 35 0 0 10187. Lab Equipmfent 701 3891 70 0 0 0 46628. Farm Tools 1609 1798 488 84 40 0 40189. Other Productive Equip 8166 16743 8365 276 0 0 33550

Sub-Total 54677 114504 53211 5655 4116 3051 235215

F. Vehicles1. Passenger 383 196 0 0 0 0 5792. Trucks 5455 6044 1834 0 0 0 133333. O&M Vehicles 0 0 0 0 0 0 04. Utility Vehicles 4472 4763 268 0 0 934 10438

* -...------- UU-UU8UU3EUUW33UUUUUUU3U3UUUUUUS33U3UUUU33UUUUUUUUUE5UUU

Sub-Total 10310 11003 2103 0 0 934 24350

G. Institutional Oev & Supp1. Training 5930 541S 2298 1n6 1262 208 168402. Technical Assistanee 567 587 488 14 11 0 166?3. Research 508 669 366 449 259 0 2252

.. u..u.uUUUSUU----UO--SaSmUUUUUUmUUUUUUUUUUSUUUUUuUB*"SUUUUmuUUUUUU*m33

Sub-Total 7005 6672 3152 2189 1533 208 20759

H. Oesign, Engineering & Sup 7545 4975 4810 5117 4668 2059 291731. Adiinistration & Mgmt 2978 393 30c9 2136 1606 475 14057J. Working Capital 0 0 13948 16231 0 0 30179C. Construction Tax 1126 2996 1516 *0 -0 -0 5638

Total PROJECT COSTS 322?54 417631 339429 22897 173118 65490 1547420

...................................................................................0...................

Values Scated by 1000.0 4/19/IMw 16:42

- 78 -

Annex 2China Table 2-9

Sichuan Agriculture Development ProjectSummary Accounts by Year

Totals Including ContingenciesusS

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

1992 1993 1994 1995 1996 1997 Total

1. INVESTMENT COSTS... ................

A. Land Acquisition 3141 2765 2443 2019 1615 777 12759B. Civil Works

1. Irrigation Works 22309 27275 26951 26117 20231 5946 1288282. On-Farm Works 2883 3989 4308 5033 6008 3749 259703. Buildings andi Plant 6S26 5979 2966 382 12 0 158654. Rural Roads 779 981 839 523 532 0 3656

Sub-Total 32498 38224 35065 32055 26784 9695 174319

C. Farm Labors 1633 3653 2856 960 390 0 94910. Materials

1. Construction Materials 1464 1804 1491 1136 995 451 73412. Breeding Stock 751 640 444 57 0 0 18923. FertiltIers 2749 1852 3224 118 31 0 79744. Pesticides 1070 310 1376 156 72 0 298S5. Seeds, Eggs 1034 1337 677 149 75 0 32726. Other MaterIal 104 286 311 93 0 0 794

Sub-Total 7173 6229 7522 1708 1174 451 24257

E. Machinery and Equlpment1. Construction 980 1298 858 36 23 0 31952. Irrigation O&H 200 337 190 21 174 350 12713. Office 1330 838 125 0 0 0 22934. Processing 5518 14073 6541 89 -0 -0 262215. Puips and Motors 101 480 511 832 561 217 27026. Furnitures 87 88 8 7 0 0 1897. Lab Equipment 130 723 13 0 0 0 8678. Farm Tools 299 334 91 16 7 0 7479. Other Productive Equip 1518 3112 15S5 51 0 0 6236

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Sub-Total 10163 21283 9891 1051 765 567 43720

F. Vehicles1. Passenger 71 37 0 0 0 0 1082. Trucks 1014 1123 341 0 0 0 24783. O&i Vehicles 0 0 0 0 0 0 04. UtIlity Vehicles 831 885 50 0 0 174 1940

Sub-Total 1916 2045 391 0 0 174 4526

G. Institutional Dev & Supp1. Training 1102 1007 427 321 235 39 31302. Technical Assistance 105 109 91 3 2 0 3103. Research 94 124 68 83 48 0 419

Sub-Total 1302 1240 586 407 285 39 3859

N. Design, Engineering & Sup 1402 925 894 951 868 383 54231. Administration & Mgmt 553 705 570 397 299 88 2613J. Working Capital 0 0 2593 3017 0 0 5609K. Construction Tax 209 557 282 -0 -0 -0 1048

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Total PROJECT COSTS 59992 77627 63091 4256S 32178 12173 28762S......................................................................------......-........................................................................

VatusScatedby4 .9 ..1 ..1.6.... ..... u...z .

Values Scaled by 1000.0 U/19/1992 16:42

-79- Anne 3Table 1-1

CHINASdium Agricultural O velopm nt Project

Procuremt of Equipment (T'0oe)........................................ ............................................................................ _.

ua ntity unit ICB LCB/a Others NIF Total(IUMt) Price(y)

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

A. Corntruction Equipment 1S,192 S91 98 14,681Generation Units 36 280 0 200Concrete Eq1P nt 2 391 391Crane 200 200Earthwork Equlipnt 9 W

rw Conatiaution Equip nt 16 12,912 12,912

B. OWN Equipant 0 2,092 3,246 5,338Repair Equipnt 115 1,564 1,679Nessure Irntnumnt 1,410 1,410Fire Equipment 5 SC_me N/Vidro tilt 13 1.95 I.mPacking Equipmnt 1 27 27other 56 56Niec.acessories 211 211

C. Irriatfon Equipnt 4,807 6,767 210 11,784PUPing Eqpnt 127 6,5o6 6,566Trnfoworr 34 210 210Diesel Engine Units 52 201 201HydrsuLic Turbine 45 4.80? 4,807

0. Procsing Equipment 9f,396 21,442 116,838Pawpr Eqfipmnt U 7144T 14,284 85,731abbit air 13 14.301 t,IOS 15,931Beef & coat net 17 2.070 40 2,110Ge 32 3.080 1,650 4n730Galtnut 26 3,918 894 4,812geed 13 3,016 3,016Fodr 2 S08 S08

E. Othr Produation Eqdpanta. Agricultural Nehfnery 2.949 2.949

Spra 1,151 1.151Agriculttur Tool 1,649 1,649Other 149 149

b. Sericulture Equlpmnt 30,009 30,009Slkmb Eogs Prodwetion 115,00aets 1.052 1,052Raising SI Slubu 115,l0eto 27.362 27,362oter 1,95 1,595

C. Livestock EqUipmt 550 1,267 1,817osinhold-ming 1,228 1,228Breeing 550 550Greland Nitoring 39 39

d. Other 786 786

F. Office A LaborstorV Equip.a. Office 9,311 9.311

Nicro CsteWr 30 1,300 1,300Coptw Statfon 3 1,720 1,720Tnultet 41 710 710Comication 26 t,1lll! 1,082Digser 38 2,022 2,022alt Printing Units 13 691 691Fed lo 2 44ohe 1,742 1,742

b. Loratory WIpmnt 1,751 1,751inetr nt 1,563 1W563App&ion_ 188 188

B. Other Minor quiE pnt 2,141 2,141H. Othe 354 3543. P3m' Equipit ts14 m S8

Niero-Csqute 5 300 300UacdsiulI 4 s a8ODatlcater 5 180 18O

Total 113,395 31,442 53.490 18,327..........................................................................................................

INOTLt lh coat of Ps' Equpipit Is I.nltded In the cast of Project Nansomment.f Some eipm nt _ds US 0,000 in agrgte. Wt thnee It_ muld be pcured owr iiy yers

inkig sub indlidual pdacge Il than U5200,000.opt, *at n5 IfirM.w

-80- Annex 3Table 1-2

CHIrnSlchbun Agricultural Develop ent Project

Procuruamnt of Nateraels CY 000)..........................................................................................................

Qu mity Unit ICB LCD Others NIF TotalCT) Priee(d)

A. Construction Materials 34,115 5,284 39,399Steel 21,322 1,600 34,115 34,11'Cement 33,232 159 5,284 5,26.

B. Agrfculturt lorputsa. Fertiltier 43,664 2,050 29,176 2,131 31,307

Urea 9,576 1,000 9,576 9,576Phosphate 6,088 350 2,131 2,131Potessful 28,000 700 19,600 19,600

b. Pesticide 301 14,545 14,545

C. Se dings 11,952 11,952Saplfng (1000 tree) 124,880 9,960 7,960Sapling (ton) 6,028 344 344Seed 117 1,648 1,648

d. Others 4,929 4,929

C. Livestocka. Breading Stock 8,879 8,879

Rabbit 60,200 1,000 1.000Geese 337,000 811 611Goat 148,400 7,068 7,068

b. Fodder 2,452 2,452

D. Other Nfnor Naterfal 7,629 7,629

Total 63,291 7,415 50,386 121,092

Procurement of Vehicles CYr000)..........................................................................................................

Quanity Unit ICe LC8 Others IF TotalCT) PriceCl)

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

A. IRRIGATION 156 15,205 15,205Hesvy Trucks C20T) 30 164,700 4,941 4,941Trucks COT) 17 90,000 1,530 1,530Duip Truck 4 30,000 1,380 1,380Utility Trucks 61 114,000 6,954 6,954Utility Cars 2 200,000 400 400

B. SOIL CONSMEVATION 18 1,548 1,548Trucks (ST) 6 S8,000 348 348Utility Trucks 12 100,000 1,200 1,200

C. SERICULTURE 27 2,658 2,658Trucks (ST) 1 56,000 S5 58Utility Trucks 26 100.000 2,600 2,600

D. LIVESTOCK a 954 954Trucks (5T) 3 58,000 174 174Utility Truck 5 156,000 780 760

E. AGROPROCESSING 40 2,986 2,986Trucks (5T) 30 5S,000 1,740 1,740Firs Engino 1 130,000 130 130Refrigerated Truck COT) 2 250,000 500 500Utility trucks 5 100,000 500 500Folk Lift 2 58,000 116 116

F. PUGoUtility Vehicle 5 200,000 1,000 1,000

Total 254 24,351 24,351..........................................................................................................

NIF8 Not IDA fin nced

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-87 - Annex 4

CHINA

SICHNAN AGRICULTURAL DEVELOPMENT PROJECT

Estimated Disbursement Schedule

….- -.---.------....-..-.-..----.-----.......---.-.-. ...--.--.... .--.-----..Disbursement

Disbursement Profile a/IDA ------------------------------ ....................

Fiscal year/ Semestral Cumulative Cumulative Year/Semester %Semester ---(US$ million)--- %

…..-----..-..- ....-----.------------..-.---.---.------------.---..----..---- 1993 b/ Year 1First (Jul-Dec,92) 10 10 7% First 0Second (Jan-June, 93) 10 20 14% second 30

1994 Year 2First (Jul-Dec,93) 12 32 22% First 38Second (Jan-June, 94) 20 52 35% second 50

1995 Year 3First (Jul-Dec, 94) 20 72 49% First 58Second (Jan-June, 95) 16 88 60% second 66

1996 Year 4First (Jul-Dec, 95) 14 102 69% First i4Second (Jan-June, 96) 12 114 78% second 82

1997 Year 5First (Jul-Dec, 96) 10 124 84% First 94Second (Jan-June, 97) 8 132 90% second 98

1998 Year 6First (Jul-Dec, 97) 8 140 95% First 100Second (Jan-June, 98) 4 144 98% second

1999 Year 7First (Jul-Dec, 98) 3 147 100% First

Total 147 147…................-..--..------.---------.-----..... ....-.-----------.. .....

a/ Disbursement profile for China - Agricultural Sectorb/ Include retroactive financing of US$ 14 million, to cover expenditures

incurred since January 1, 1992.

Completion date: December 31, 1998Closing date: December 31, 1999.

Note: The project disbursement is expected to be slower than the averageprofile of the agricultural sector since the project contains large scaleconstruction and would be implemented over six years.

Annex 5Table 1-1

Sichuan Agrelture Project

Crop Area, Yield, and Production of Irrigation Component

Existing Situation Full Development Changes

Area Yield Output Area Yield Output Area Yield Output('000 ha) (ton/he) ('000 ton) ('000 ha) (ton/ha) ('000 ton) ('000 he) (ton/ha) ('000 ton)

Shenzhpng Irrigation Ar e

Paddy 80.86 7.00 210.02 44.86 s.50 877.00 13.49 1.50 160.9"Wheat 88.87 2.70 90.11 47.67 8.76 178.76 14.80 1.06 86.67Corn 16.11 2.06 61.62 14.51 4.50 65.26 -8.61 1.65 18.06SWet Potato 20.58 8.00 61.68 9.85 8.76 85.06 -11.17 0.75 -26.50B"ns A Poea 4.69 1.65 7.58 7.17 2.10 16.06 2.26 0.65 7.46Rrpesed 14.05 1.26 17.56 14.60 2.00 29.20 0.65 0.75 11.64Cotton 5.41 0.59 8.17 5.67 0.80 4.58 0.26 0.21 1.87Other Cash Crope 4.40 4.40 0.00

Total Cropped Area 18l.6 147.78 16.10Total Cultivated Area 70.01 70.01Cropping Intensity (M) 16s6 211X

uda Irrigation Area

Paddy 24.05 0.60 168.67 87.12 8.25 806.23 18.07 1.46 142.71Wheat 28.66 S. U 79.98 26.86 4.50 118.59 2.48 1.15 86.61Corn 10.06 8.15 50.00 7.27 4.065 8.61 -8.81 1.50 -16.86Sweet Potato 18.09 2.86 87.82 6.46 8.75 24.22 -6.64 0.90 -18.10Beans A Pe 6.98 1.85 9.42 10.98 2.10 28.06 4.00 0.75 18.64Rapesed 16.04 1.70 27.27 18.74 2.40 44.97 2.70 0.70 17.70P"enuts 2.52 1.66 8.91 2.68 2.25 6.86 0.70 2.46Cotton 2.67 0.54 1.44 2.07 0.80 2.18 V.,0 0.20 0.69Othr Cash Crops 6.69 16.24 9.65

Total Croppd Are 112.00 128.60 16.66Total Cultivated Area 61.47 01.47Cropping Intenity (X) 162 209%

YangJisab Irrigation Ara

Paddy 1.89 .90 8.18 2.01 7.S0 15.10 0.68 1.60 6.92Whet 1.66 2.70 4.46 1.81 3.60 6.65 0.16 0.90 2.06Corn 0.97 8.75 8.65 1.00 4.65 4.66 0.08 0.90 1.008teet Potato 0.27 2.15 0.57 0.27 8.00 0.60 0.00 0.86 0.2380n- * Peas 0.27 1.80 0.86 0.27 2.00 0.58 0.00 0.70 0-19Rapesed 1.87 1.85 1.85 1.57 1.95 8.06 0.19 0.60 1.20Peanuts 0.18 1.20 0.16 0.18 1.75 0.28 0.00 0.6s 0.07Other Cash Crop 1.01 1.08 0.02

Total Cropped Area 7.07 8.09 1.08Total Cultivated Area 8.75 8.76Cropping Intensity (X) 169x 216X

Total Irrigation Component Area

Paddy 56.80 6.9 867.77 68.49 6.86 696.8s 27.19 1.48 810.61Wheat 56.90 2.96 174.55 75.64 4.01 808.69 16.94 1.04 129.84Corn 85.17 8.01 106.98 22.78 4.55 108.74 -12.89 1.64 -2.19Sweet Potato 88.69 2.94 99.47 16.06 8.74 60.09 -17.61 0.90 -89.38Bene A Pea 12.14 1.48 17.85 18.42 2.10 88.65 6.26 0.67 21.81Ropesed 81.46 1.46 46.66 84.91 2.21 77.28 8.44 0.78 80.54Peanuts 2.66 1.65 4.07 2.96 2.28 6.59 0. 0 0.70 2.62Cotton 6.06 0.67 4.01 8.88 0.80 6.67 0.26 0.28 2.06Other Cash Crops 12.10 21.67 9.57

Total Cropped Area 250.69 294.46 38.7sTotal Cultlvated Area 186.28 186.28Cropping Intensity (X) 1s65 210X

Notes Other cash crops Include kenof, vgetbles, etc..

Annex 5- 89 - Table 1-2

China

Sichuan Agriculture Development Project---------------------------------------

Irrigation Component

('000 ha) Irrigation Condition In Project Areas

Fully PartiallyIrrigated Irrigated Rainfed Total

…--------------------------------------------------------------__------------Shenzhong AreaPresent 0.00 36.58 33.43 70.01Full Development 65.58 4.43 0.00 70.01

Wudu AreaPresent 0.00 35.60 25.87 61.47Full Development 58.77 2.70 0.00 61.47

Yangj iaba AreaPresent 0.00 1.47 2.28 3.75Full Development 3.75 0.00 0.00 3.75

Total Irrigation ComponentPresent 0.00 73.65 61.58 135.23Full Development 128.10 7.13 0.00 135.23

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

Chil s

Sichuan Agriculture Project

Irription Component

Phasing of Crop Area and Yield

Area ('000 ha) Yield (toonh

1m 2 199 1994 1995 1996 1997 1998 1999 Prest 1 2 a 4 6Shonahong Area

Paddy 80.86 83.26 35.62 37.07 40.81 44.85 7.00 7.60 7.97 8.27 8.42 9.50What 88.87 86.92 30.42 40.80 43.92 47.67 2.70 3.12 8.88 a.69 8.70 8.75Corn 18.11 17.47 16.84 16.24 16.46 14.51 2.86 8.51 8.92 4.25 4.42 4.50Sweet Potato 20.68 18.64 16.58 14.72 12.29 9.85 8.00 8.80 8.49 3.84 3.71 8.76Bens A Peas 4.89 6.80 6.70 6.08 6.67 7.17 1.65 1.77 1.91 2.02 2.0? 2.10Rapeseed 14.05 14.15 14.24 14.88 14.46 14.60 1.26 1.66 1.74 1.89 1.98 2.00Cotton 6.41 6.46 6.60 6.64 6.60 6.67 0.69 0.67 0.72 0.77 0.79 0.60Other Cash Crops 4.40 4.40 4.40 4.40 4.40 4.40

Subbtal 181.68 184.49 187.81 189.99 148.60 147.78

Wudu Area

Paddy 24.06 24.15 26.22 26.11 28.60 80.76 84.31 87.12 6.80 7.B 7.74 8.03 8.18 8.25Whet 28.88 23.90 24.10 24.27 24.74 26.16 26.82 26.86 8.86 3.81 4.10 4.33 4.44 4.60Corn 16.06 16.01 16.29 14.89 13.01 11.56 9.17 7.27 8.16 8.76 4.13 4.43 4.67 4.66Sweet Potato 18.09 18.04 12.60 12.06 10.78 9.69 7.89 6.46 2.86 3.21 8.44 8.62 3.71 8.76Beans a Peas 6.9n 7.01 7.84 7.61 0.37 9.08 10.12 10.96 1.86 1.66 1.84 1.9 2.06 2.10Rapeseed 16.04 16.06 16.26 16.47 16.98 17.42 18.16 l8.74 1.70 1.96 2.16 2.29 2.36 2.40Peanus 2.62 2.62 2.66 2.67 2.63 2.68 2.76 2.983 1.66 1.83 2.00 2.1' 2.21 2.26Cotton 2.67 2.67 2.67 2.67 2.67 2.67 2.67 2.67 0.64 0.64 0.71 0.76 0.79 0.90Other Cash Crops 6.69 6.76 7.64 0.19 10.02 11.59 14.18 16.24

Subotal 112.00 112.18 118.49 114.62 117.60 120.66 126.07 129.66

Yonjiaba Area

Paddy 1.89 1.89 1.99 1.61 2.01 2.01 5.90 8.54 6.94 7.26 7.42 7.60Wheat 1.66 1.66 1.65 1.71 1.81 1.81 2.70 3.06 8.29 8.47 3.5B 3.60Corn 0.97 0.97 0.97 0.98 1.00 1.00 8.76 4.11 4.84 4.62 4.61 4.65 .Sweat Potato 0.27 0.27 0.27 0.27 0.27 0.27 2.16 2.49 2.70 2.87 2.96 8.00 lbBans a P"s 0.27 0.27 0.27 0.27 0.27 0.27 1.80 1.56 1.75 1.89 1.96 2.00 FRapseed 1.87 1.87 1.87 1.44 1.67 1.67 1.85 1.69 1.74 1.86 1.92 1.96 *Peanuts 0.18 0.18 0.18 0.18 0.18 0.18 1.20 1.42 1.6e 1.67 1.72 1.75 LaOthor Cash Crops 1.01 1.01 1.01 1.02 1.03 1.08

Subotal 7.07 7.07 7.07 7.48 8.09 8.09

CHDh

Sichuan Agriculture Develop4mnt Proj et

Sherbhong Irrigation Area Crop eudget

Paddy Wheat Corn Swet Ptato Rrp ed De cttnEcon Conv -- - -___ --------Unit Factor Price Quant. Amnt Quant. Amunt Quant. Amunt Quant. Amunt Ount. Amunt Quant. Amount Oant. Amount

Withot Project

Yield kg 7 000 2 700 2,850 3.000 1,250 1,5E0 sesPrice Y/kg 6.76 6.74 0.72 0.9 1.61 1.4 6.98Product Value V 5.820 1.90 2.052 2.70D 2.013 2.170 4.083Sp-product kg 0.1 5.600 560 2.160 216 2.280 282 2.400 240 1.000 100 1,240 124 3.000 300Total Value Y 5,880 2,214 2,280 2,940 2.113 2.294 4.38SZitautl coatSee" PrCIe t.5 1.2 2.2 0.3S5 2.6 1.9 3.6See" kg 24 132 120 144 25 6S 50 175 2 5 75 143 40 152N f*rti I izr kg 1.2 2.19 12o 263 110 241 115 252 30 66 150 328 0 0 165 361P fortilIier kg 1.2 2.92 30 88 60 175 60 175 60 175 60 175 45 131 75 21Qhnure ton 0.98 2D 12 240 15 300 12 240 7.5 1S0 18 360 0 0 1S 3S0Chmicaln Y 1.2 1 67.5 68 25 25 10 10 15 15 0o 30 0 0 225 225Aninlr/Nehine day 0.98 7.5 30 225 15 113 6 46 10 75 t5 113 9 6 7 58Watar Y I 1 20 20 0 0 0 0 0 0 0 0 0 0 0 0Other la V 0.98 1 128 in 115 115 100 100 90 90 100 100 26 26 20P 208Subtotal Y 1.163 1,112 878 746 1,111 367 l.S17

Not Value Y 4.718 1.102 1,402 2,194 1,002 1.927 2.8SSLabor mndey 0.98 a 400 1,200 300 900 380 990 240 720 330 990 195 S85 49' 1.485Return per moday V 11.79 a.67 4.25 9.14 3.04 9.88 5.79Not Incom V 8.618 202 412 1.474 12 1,342 1.381With Project

Vield kg 8.E00 3.750 4,S00 8,750 2.000 2,100 60oP-ice Y/kg 0.76 0.74 0.72 0.9 1.61 1.4 6.C3Product Value V 6.480 295 3S240 3.37 1 3,220 2,940 5S.584Wjy-product kgs 0.1 6,80 680 3.000 800 3.600 3860 3.000 800 1,600 160 1.680 168 4.0O0 400Total Value Y 7.140 8,075 3,600 3.675 3.380 3,108 5.984Irut CoatSe;ed Price S.5 1.2 2.2 0.85 2.6 1.9 3.8Seede kg 24 132 120 144 25 55 500 175 2 5 75 143 40 152N fortili ir kg 1.2 2.19 1S0 328 140 306 .10 328 sO lO 185 405 S0 66 180 394P fortil er kg 1.2 2.92 40 117 75 219 75 219 60 175 90 268 60 175 75 219K fertilizr kg 1.2 1.40 30 42 a8 SS 60 84 45 63 60 84 45 63 75 1OSmnure ton 0.98 20 12 240 iS s8o 12 240 7.6 150 18 360 0 0 iS 800Caemical. Y 1.2 1 67.5 68 25 25 10 10 iS 1S 30 80 0 0 225 225Animal/hichine dae 0.90 7.5 30 225 15 113 6 48 10 75 15 118 9 68 7 SSWatar 18M 183 72 72 72 72 72 72 72 72 72 72 72 72Other /a V 0.98 1 128 128 1U8 115 1o 100 90 90 100 100 26 26 206 206Subtotal Y 1.412 1,347 1.154 924 1.431 612 1.727

Not Value Y 5.728 1.728 2.446 2,751 1.949 2.496 4.257Labor mnday 0.98 a 485 1.305 $15 945 845 1.085 255 765 845 1,065 210 680 525 1.57SReturn per manday Y 18.17 6.49 7.09 10.79 5.65 11.89 8.11 F3 iet Incolm Y 4.423 788 1.411 1.966 914 1.866 2.682 S/n Other Includes tools, plastic shoet. babo, tc.

I

Sichuean Agriculture gelozpmnt ProjectWudu I rigation Are* Crop bdget(per ha)

Paddy Wheat Corn 5N t potato Rnpoeeed 8 ne Cotton PenutSc" Ce --

-Unit Fetor Price Quant. Am_ut ennt. Amotnt bent. Azent nt unt. AAemt Waint. Amount Qusnt. Amount Qbnt. AmntVithout Project

Yield kg 6.800 3 350 3.1I0 2.8SD 1.70D 1.350 540 1,550Price VIkg 0.76 6.74 0.72 0.9 1.61 1.4 6.98 2.2Product Value Y .168 2,479 2,268 2,665 2.737 1,890 3,769 3.4105,-product hg 0.1 5.440 S44 2.6B0 268 2.520 252 2.280 228 1.360 136 1,060 106 2,250 225 1,240 124Total Value Y 6,712 2,747 2.520 2.79M 2,878 1.990 3.994 3.634Input Cost

Seed Peice 5.5 1.2 2.2 0.38 2.6 1.9 3.8 2.6Sede"k

24 132 lo0 144 26 55 B0o 175 2 8 75 143 40 152 225 6GMN fertilizer kg 1.2 2.19 120 263 110 241 110 241 30 66 165 361 0 0 S0 328 3D 6s6Pfortillsor k 1.2 2.92 45 11 60 175 66 193 s0 175 60 175 45 181 60 175 45 2SIbinure ton 0.96 20 12 240 1S 80 12 240 7.5 160 I1 360 0 0 15 300 7.5 1S0

Chemicale v 1.2 1 75 75 45 45 10 10 7 7 so so 0 0 195 195 5 5Aniemsl$chsne day 0.96 7.5 29 220 3 2S 1 10 12 90 16 120 6 45 16 120 10 75Water 1 1 82 82 11 11 8 a 5 5 11 11 11 11 11 11 0 0

Other /a Y 0.98 1 186 188 100 100 106 105 100 1o0 100 l00 2? 2? 146 146 OD 60Subtotal Y 1.828 1.041 861 768 1.162 357 1.427 1.117Nat Value Y 4,s34 1,706 1.659 2.025 1,711 1.641 2.567 2.417Labor ondny 0.98 3 875 1125 SC0 900 SSD 990 240 720 3D0 990 19S N8S 465 1395 30D 900Retern per manday Y 11.69 5.69 5.03 8.44 6.18 8.42 5.5S2 8.06Nat leme Y 38259 an6 S69 1.as m 1.056 1,172 1.517With Project

Yield g 82S0 4600 4 650 8.750 2.400 2.100 80o 2.250Price V/hkg .867 6.72 0.9 1.61 1.4 6.96 2.2Prodct Value Y 06 270 0-4 S0 7 S48 °i375 2.940 69 554 4.90

Sy-product Ik 0.1 6. 66 3.600 6C0 8.72 0 872 3c000 300 1.920 192 1,680 168 4.000 400 1.60 10Tofta Value V 6930 3.6o 8.72 8.675 4066 3.108 5.964 5. OInput CostSede Price 6.6 1.2 2.2 0.35 2.6 1.9 3.8 2.8Seed 24 132 120 144 S0 66 G00 175 2 5 75 148 40 152 225 60N fertilizer kg 1.2 2.19 150 828 140 306 160 328 So 109 195 427 40 a8 165 361 45 98P frtiliur kg 1.2 2.92 75 219 75 219 75 219 75 219 90 268 75 219 75 229 60 175K fertili"er kg 1.2 1.40 46 63 45 63 60 84 45 63 75 106 75 105 75 106 60 84Denure ton 0.96 20 12 240 15 300 12 240 7.5 150 13 360 0 0 1S 300 7.5 150Chemcale Y 1.2 1 75 75 25 25 10 10 7 7 30 S0 0 0 121 121 S SAniemlftlchmine day 0.98 7.5 29 220 2 90 1 10 12 e 20 1S0 6 45 26 195 10 75

WaterV 1 1 258 258 so so 25 25 11 11 so so 22.5 22.5 150 150 7.5 7.5Other la V 0.9o 1 18 185 10t0 100 106 ls 100 10 100 100 27 27 146 146 60 s6

Subtotl v 1,60 1.297 1.087 924 1.489 46a 1.748 I.=sNat Vale

5,240 2.393 2,633 2.751 2,6U7 2.460 4.2J5 3.645Labor mnday 0.9e 3 406 U12 818 948 348 1065 255 766 348 1036 210 630 S25 1575 340 I20Return par mnday Y 12.94 7.60 7.63 1O.79 7.44 11.71 s.07 11.31Nat Income Y 4,025 1.448 1.6 1.966 1.6S2 1.60 2.661 2,>/a Other includes tool. plastic dhet. beaoo, tc.

X U'

I-..

ow"

Sicuan Ar.icultute lre_al t Proe;Y ny;iste Irrigtion Area Crop Budget

(pr km)

P ddy brat Corn Sweet Potato RovPeeeS Fehenot.

Bcoi Conv - -Unit Factor Price WQutnt. unt. nt ut. t Qnt. Aount bat. nt avant, nt Ouat. A t

via"% Project

Vioad &. 8.900 2. 70 a 76 2.150o 1.360 1.300 1.200

Price 'f/g 0.76 0774 6.72 0.9 1.61 1.4 2.2

Product Value V 4,484 1996 To7 1.965 2.174 1.620 2.640

By-product kg 0.1 4.720 472 2.160 216 8.000 300 1.720 172 1.060 106 1.040 104 960 96

Iotel Volue v 4,956 2.214 s,eo0 2,107 2,262 1,924 2.736

Iput CostSeed. Price

5.5 1.2 2.2 0.85 2.6 1.9 2.0

Sed. kg 24 132 UO 144 80 66 SO0 U6 2 5 75 143 225 630

N frtiI i,r g 1.2 2.19 120 263 110 241 115 252 30 66 ISO 828 0 0 15 33

P fertillaer kg 1.2 2.92 30 88 60 175 60 176 60 175 60 175 45 131 60 175

uwue ton 0.96 20 12 240 15 a00 12 240 7.5 ISO 18 360 0 0 7.5 I50

Clueicalm V 1.2 1 75 76 46 45 10 10 10 10 30 30 0 0 5 5

AnimljMehin da" 0.9S 7.8 29 220 16 120 12 90 12 90 17 128 9 68 17 128

Vt.r Y 1 1 75 75 0 0 0 0 0 0 a 0 0 O C. 0

Othr /a Y 0.98 1 157 167 12 120 106 105 100 100 10O 10 25 2! C0. 60

Subtotal Y

1.249 1,145 930 766 1.126 36G. .180

Wet Valuo V S,707 1,069 2.062 1.341 1,156 1.568 ).56

Labor mnday 0.96 3 800 1140 sO 9eo 830 990 220 880 80 990 195 N6s 300 900

Return per onday r 9.76 8.86 6.25 6.10 3.60 7.99 5.19

tb Income Y 2.567 19 1,072 6S1 168 973 6

WVit Project

Y;eld ie 7.S00 8.6C0 4.650 3.000 1.950 2.000 1.750

Price YV/e 0.76 0.74 0.72 0.9 1 61 1.4 2.2

Prodwut Value Y 57C0 2.6e4 , 848 2.700 3.140 2.800 3850

BR-product kg 0.1 6.000 600 2.860 298 3.720 872 2,400 240 1,560 156 1.600 160 1.400 140

Total Volue Y 6,900 2,952 a,720 2.940 3.296 2,960 3.990

Input Costsoods Price

6.5 1.2 2.2 0.35 2.6 1.9 2.0

Seds kg 24 182 120 144 So 66 S00 175 2 5 75 143 225 630

N fertiliser kg 1.2 2.19 160 328 140 306 160 828 SO 109 16 894 30 66 30 66

P fortll;8*r kg 1.2 2.92 40 U17 75 219 75 219 60 175 90 26S 60 176 60 175

K fertil IIr le 1.2 1.40 30 42 45 as 60 84 60 84 60 84 45 63 45 63

"_aes top 0.96 20 12 240 15 SO 12 240 7.5 160 i 360 0 0 7.5 1o

ChemicVl. V 1.2 1 76 75 45 48 10 10 10 10 30 80 0 0 5 5

AuimelVaccbine d Y 0.98 7.5 29 220 16i 1 12 9 12 90 17 126 9 68 17 128

wVt.er

75 1 272 225 is 7 67.6 87.5 60 60 67.6 67.5 45 45 52.5 52.5

atgar/a V 0.96 I ta7 157 1t0 10 105 106 100 100 10 t00 25 25 60 60

S"btotal 1,566 1.192 1.209 953 1.430 564 1.329

Nat Vrlue Y 4.764 1.560 2,511 1.967 1.665 2.376 2.661

Labor monday 0.98 3 400 10O S81 945 84 1086 235 705 845 1085 210 890 315 945

Saturn per moy V 11.91 4.95 7.20 0 .46 5.41 11.82 8.45 1 .:

Mst Sca. V S.664 6SS 1.476 1.282 830 . *-l 1,716 X

le Othr includes tls, plastic shoot. bamboo. -te.

CHINASichuan Agriculture Development Project

Crop Calendar For Main Crops

r______ _ | §S | Oct Nov Dec Jan Feb Mar |Apr |May |Jun J| Aug |Sep

|Paddy, ___

Wheat _

Corn - - - -

Sweet Potato

Rapeseed - - - - - -

Beans

Cotton

Sowing & Nursery Period: Main Growing Period: Hamvest teriod:

Source: Sichuan Feasibirly Report, Irrigation Component, Oct. 1991.cr X In

Annex 5- 95g FUN

CHINA

Sichuan Agriculture Devtlopment Project.......................................

Farm Model for Shenzhong Irrigation Area(Y) ............... ............

Without Project With Project............... .................................. .

Land Gra1n Cash Crop Total Grain Cash Crop Total................................ I................................

Area (mu) 3.33 4.90 1.37 6.Z6 5.51 1.52 7.03

Crop Value 1,026 224 1,250 1,577 358 1,934By-Product Value 106 13 120 166 21 187Anfmal Ralsing 475 605Mulberry/Cocoon 100 500Total Income 1,133 237 1,944 1,743 378 3,227

Operating CostSeeds 42.7n 7.04 49.76 48.06 8.19 56.25N fertilizer 69.92 20.81 90.73 110.75 28.26 139.01P fertilizer 48.55 15.42 63.97 64.73 22.53 87.25K fertilizer 0 0 0 19.68 8.09 27.77Nanure 78.83 21.19 100.02 94.58 22.10 116.68Chemicals 10.81 5.19 15.99 14.17 5.44 19.61Animal/Nchine 41.47 7.91 49.38 52.98 8.64 61.61Water 1.96 0.00 1.96 35.03 7.27 42.30Other 36.32 8.79 45.10 42.65 9.33 51.98Anmal Feed 160.0 190.0Mulberry/Cocoon SO 250Tax 97.2 161.3

Total Cost 331 86 n4 483 120 1,204

Net Value 802 151 1,220 1,261 258 2,023

other Income

Labor For Crops 105.52 28.95 134 132.20 33.14 165Labor For Animal Raisfng 50 65Labor For Multerry/Cocoon 20 40Total Labor 106 29 204 132 33 270

Return per Manday 5.97 7.48Per Capita Income 359 595

An average household has 3.4 family mmcbers and 3.33 mu of land.Assume a household raises 2.5 pigs and 10 chickens without project.Assum one pig weights 60 kg at price of 2.5Y/kg, one chfcken sells for Y10.Typical sown area in mu:

peddy iheat corn sw potato rapeseed bean cotton other' Totalwlo proj. 1.469 1.589 0.863 0.976 0.669 0.233 0.256 0.210 6.264w/ proj. 2.108 2.268 0.689 0.446 0.696 0.340 0.270 0.210 7.027

Assumes beans fn this model.

Annex 5

- 96 - Table 4-2

CHINA

Sichuan Agriculture Development Project.......................................

Farm Nodel for Wudu Irrfgation AreaCY) *-------. -

Without Project With ProJect..................... .......................

Land Grain Cash Crop Total Grain Cash Crop Total

Area (mu) 3.98 4.99 2.25 7.25 5.00 3.33 8.33

Crop Valuo 1095 424 1.519 1.583 924 2,507By-Product Value 114 20 135 167 43 210Animal Raising 550 729Mulberry/Cocoon 100 400Total Income 1,209 444 2303 1.750 967 3,846

Operating CostSeeds 42.25 31.29 73.54 44.51 60.77 105.28N fortilizer 72.48 31.3S 103.83 100.81 50.92 151.73P fertilize 54.93 23.25 78.18 72.94 48.55 121.48K fertilizer 0 0 0 21.66 21.60 43.27Manure 80.98 34.30 115.28 84.34 44.92 129.26Chemicals 13.51 4.50 18.01 15.38 4.22 19.60Animal/Machine 31.19 14.00 45.19 48.35 22.68 71.03Water 10.48 1.22 11.70 43.34 7.45 50.79Other 42.46 11.78 54.24 47.13 15.98 63.11Animal Feed 200.0 240.0Mulberry/Cocoon SO 200Tax 115.2 192.3

Total Cost 348 152 865 478 277 1,388

Net Value 861 293 1,438 1m272 689 2,458

Other Income

Labor For Crops 106.34 69.62 176 118.72 71.88 191Labor For Animal Raising 60 75Labor For Mulberry/Cocoon 20 40TotalL abor 106 70 256 119 72 306

Return per Manday 5.62 8.04Per Capita Income 411 702

An average household has 3.5 family members and 3.98 mu of land.Assume a household raises 3 pigs and 10 chickens without project.Assume one pig weights 60 kg at prfce of 2.MY/g one chicken sells for Y10.Typfcal sown area in mu:

poiay Iheat corn sw potato rapeseed bean cotton other* totalw/o proj. 1.557 1.545 1.043 0.848 1.039 0.450 0.171 0.593 7.247w/ proj. 2.405 1.708 0.470 0.418 1.214 0.713 0.171 1.234 8.334* Assumes peanut in this model.

Annex 597 - T ab re, S

CHINA

Sichuan Agrfculture Developent Project

(Y) ~~~~~~~........................................

Without Project With Project

Land Grain Cash Crop Total Grain Cash Crop Total..................................... ...................................................................... . ..........................

Area (mu) 5.92 6.76 4.41 11.16 8.04 4.74 12.78

Crop Value 1,333 685 2,018 2,144 1,070 3,214By-Product Value 142 30 172 228 47 275Animal Raising 550 713

Total Income 1,475 715 2,741 2,372 1,117 4,202

Operating CostSeeds 55.98 81.03 137.02 67.30 82.38 149.68N fertilizer 107.80 51.47 159.28 165.59 74.83 240.42P fertilizer 66.06 50.20 116.26 94.41 69.72 164.13K fertilifer 32.12 23.37 55.49Manure 116.03 70.28 186.30 137.59 77.82 215.40Chemicals 20.08 4.95 25.03 25.81 5.56 31.37Animal/Machine 64.73 35.79 100.52 81.51 38.60 120.11Water 10.95 0.00 10.95 70.77 18.85 89.62Other 57.36 22.44 79.80 70.02 24.57 94.60Animal Feed 200.0 240.0Tax 137.0 210.1

Total Cost 499 316 1,152 745 416 1,611

Net Value 976 399 1,588 1,627 702 2,591

Other Income 499 316 1.152 745 416 1,611

Labor For Crops 147.65 89.56 237 187.78 101.53 289Labor For Animal Raisfng 60 90Total Labor 148 90 297 188 102 379

Return per Nanday 5.34 6.83Per Capita Income 148 90 418 188 102 682

An average household has 3.8 family members and 5.92 mu of land.Assume a household raises 3 pigs and 10 chickens without project.Assine one pig weights 60 kg at price of 2.5Y/kg, one chicken sells for Y10.Typical sown area in mu:

paddy wheat corn sw potato rapeseed bean other Totalw/o proj. 2.189 2.609 1.538 0.420 2.171 0.420 1.816 11.165w/ proj. 3.177 2.864 1.580 0.420 2.473 0.420 1.846 12.780* Assums peanut in this model.

Annex S_98_ Table 4 4

CHINA

Sichuan Agriculture Dovelopment Project...... .......................

Farm Model for Cheotfan Soil Conservation Demosetration ProjectCV) .............................................................

Without Project With Project

Grain Cash Crop Forest Total GraIn Cash Crop Forest Total............................................................................................................

Area (mu) 6.50 3.42 3.51 13.43 5.36 3.60 19.30 28.26

Main Product Value 1.108 501 346 1f955 1,261 688 2,139 4,087By-Product Value 117 24 141 132 33 166Animal Raiaing 400 480

Total Income 2,496 4.733

Operating CostCrop Input 462 255 17 734 524 334 95 953Anfmal Feed 150 180Tax 199 696

Total Cost 1,084 1,829

Not Value 1.412 2,904

Other Memo

Labor For Crops 128.73 70.46 20.33 220 122.83 76.40 111.81 311Labor For Animtl Raising 60 90Total Labor 280 401

Return nor Nmnday 5.05 7.24Per Capita Inc. 336 691

An average household has 4.2 family meabers, 5.51 mu of annual crop and 3.51 mu of perennial crop landwithout project, 4.32 mu of annual crop and 19.3 mu of perennial crop land with project.Assume a household rafess 2 pigs and 10 chickens without project.Assume one pig weights 60 kg at price of 2.5YIkh one chicken sells for YIO.Typical sown area fn mu:

paddy wheat corn ax potato rapeseed bean other* Totalw/o proj. 1.200 1.800 1.500 2.000 2.500 0.420 0.500 9.920wl proj. 1.860 1.800 1.200 0.500 2.500 0.600 0.500 8.960* Assumes pearut in this model.

Annex 5Table 4-5

_ 99 _

CHINA

Sichuan Agriculture Development Project.......................................

Farm Model for Mulberry and Silkworm Component

Without Project With Project................ ..................................

Unit Price Quantity Amount Quantity Amount.....................................................................................................

Product ValuesCocoon kg 8.50 12.50 106.2S 73.00 620.50

Mulberry branch kg 0.02 150.00 3.00 750.00 15.00Silkworm faeces kg 0.03 6S.00 2.21 325.00 11.0S

Total production value 111.46 646.5S

Input costs

Silkworm egg box 15.00 0.50 7.50 2.S0 37.S0

Cooperative raring fee 1.00 5.00 S.00 2S.00 25.00Silkworm drugs kg 1.00 0.S0 0.50 2.50 2.50

Disinfectant ton 1.00 4.00 4.00 20.00 20.00

Farm chemicals 1.00 1.50 1.50 7.50 7.50

Urea kg 0.77 15.00 11.55 75.00 57.75Dry manure kg 0.04 250.00 10.00 1250.00 50.00

Liquid manure kg 0.01 1000.00 5.00 5000.00 25.00

Tools and others 1.00 4.50 4.50 22.50 22.50Tax 5S 5.57 32.33Total cost 55.12 280.08

Net income 56.34 366.47

Labor required Man-day 3.00 11.00 55.00Disinfectfon a 0.50 2.50

Leave harvesting a 7.00 35.00Silkworm rearing a 1.00 5.00Mulberry tree mangnt a 1.50 7.50Cocoon harves/merketing a 1.00 5.00

Net Income per laborday 5.12 6.66....................................................................................................

Without project, ne household has 0.3 mu of mulberry trees and 0.5 box of silkworm.With project, one household has I mu of mulberry trees and 2.5 box of silkworm.

CHINA

Sichuan Agricutture Development Project................. ........................................

Farm Nodel for Goat Raising In TouyangCT) ......................................

year 1 2 3 4 5 6 7 8 9 10 11-20........................................................................................................................................

INCONE

Cull Adult females 0 93 125 148 170 170 170 170 170 170 ifOFemales one to two years 0 22 27 19 19 la 18 18 16 18 18Females 0 to 12 months 0 137 314 371 453 453 453 453 453 452 452noles 0 to 12 months 204 388 486 548 631 631 631 631 631 631 631Nales, Cull Lorking or Service 9 17 22 24 28 28 28 28 28 28 28Manure 11 15 18 19 20 20 20 20 20 20 20

TOTAL INCOME 224 673 991 1.128 1,320 1,321 1,320 1,320 1.320 1,320 1.320

OPERATING EXPENSES 0....................

Livestock Purchase. Ras 8 16 19 22 25 25 25 25 r 25 25Animal Health 39 53 62 65 69 69 69 69 69 69 69Artificial Insemination 7 12 16 17 20 20 20 20 20 20 20Feed Purchase 35 45 49 50 53 53 53 53 53 53 53Grass inputs costs 0 31 31 31 31 31 31 31 31 31 31Sundry Expenses 4 8 9 9 10 10 10 10 10 10 10

TOTAL OPERATING EXPENSES 93 164 186 194 207 207 207 207 207 207 207

Labor requiredNanagement 54 73 85 89 95 95 95 9f 95 94 94Forage crop 0 10 40 40 40 40 40 40 40 40 40

Labor cost 215 330 499 51S 538 538 538 538 538 538 538

MET FARM INCOME 131 S08 806 935 1,113 1,113 1,113 1,113 1,112 1.112 1.112 * hn

Returm per mnaday 2.43 6.15 6.45 7.26 8.27 8.27 8.27 8.27 8.27 8.27 8.27..................... ..................................................................................................................

Annex 5- 101 - Table 4-7

CHINA

Sichuan Agricultural Development Project___________________________________- ___

Farm Model for Geese RaLsing ln Xlushan

(Y)

Unlt Price Amt. Value

Goose Y/bird 13.30 50.00 665.00Manure Y/kg 0.10 1050.00 105.00

Total productlon value 770.00

input costsGoslLng bird 2.00 56.00 112.00Feed kg 0.60 330 198.00Veterinary cost 25.00Grass seed ton 8.00 3 24.00Urea kg 1.00 30.00 30.00Super phosphate kg 0.35 10.00 3.50Tools and others 20.10

Total Lnputs 412.6

Net Lncome 357.4

Labor reVquired Man-day 4.00 19 76.00Grass productlon 4Management 15

Net income per laborday 18.81…--------------------------------------------__----------------

CNRIA

Sichuan Agricultural DOevelopent Project........................................

Famr Nadel for Rabbit Raising in Shizhu.......................................

(I)

Incremental ValueUni ..........

Unit Price Yri Yr2 Yr3 Yr4 YrS r,6 Yr7-20............................................. ....................................................................................................................

Rabbit hair kg 22.5 25.0 27.5 32.5 35.0 35.0 35.0Y/kg 60.00 1,350.0 1,500.0 1,650.0 1,950.0 2,100.0 2,100.0 2,100.0Baby rabbit pc. 50.0 80.0 120.0 150.0 160.0 160.0 160.0V/pc S.00 250.0 400.0 600.0 750.0 800.0 800.0 800.0Total production value 1,600.0 1,900.0 2,250.0 2,700.0 2,900.0 2,900.0 2,900.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0lIpat costsBreeding rabbit replace pc. 2.0 2.0 2.0 2.0 2.0 2.0 2.010.00 20.0 20.0 20.0 20.0 20.0 20.0 20.0feed kg 1,500.0 1,800.0 2,000.0 2,000.0 2,000.0 2,000.0 2,000.0 1Y/kg 0.60 900.0 1,080.0 1,200.0 1,200.0 1,200.0 1,200.0 1,200.0Urea kg 7.0 7.0 7.0 7.0 7.0 7.0 7.0Y/kg 1.00 7.0 7.0 7.0 7.0 7.0 7.0 7.0 oSwer phosphate kg 0.0 0.0 0.0 0.0 0.0 0.0 0.0Y/kg 0.35 0.0 0.0 0.0 0.0 0.0 0.0 0.0Veterinary cost 100.0 100.0 100.0 150.0 150.0 1S0.0 150.0Tools and others 1.00 8.0 8.0 9.0 9.0 9.0 9.0 9.0

Total inputs 1,035.0 1,215.0 1,336.0 1,386.0 1t386.0 1,386.0 1,386.0Net fncv a 565.0 685.0 914.0 1,314.0 1,514.0 1,514.0 1,514.0Labor required Man-day 4.00 182 182 182 182 182 182 182Grass production 2 2 2 2 2 2 2Rabbit m_ngement 180 180 180 180 180 180 180Labor cost 728.0 728.0 728.0 728.0 728.0 728.0 728.0Met inome per laboday 3.1 3.8 5.0 7.2 8.3 8.3 8.3one household raises 50 rabbits.

O X

- 103- Annex 5Table 5

CHINA

Sichuan Agricultural Devolopment Project

Rent and Cost Recovery(YOOO)...............................................................................................................

Wudu Shengzhong YangJIaba Total

........................... .............................................................. , , .........

At Full Developnent a/Incremental Income bl 196.339 191,553 10,124 396.352

Iquted Value, Famtly Labor c/ 26578 29,268 1,489 57r335Imputed Value, Nnagemmnt Services d/ 19,634 19 155 1.012 39.092Iouted Return to Own Capital s/ 9.817 9.578 506 19.546Allowance for Risk/Uhcertainty f/ 19,634 19,155 1.012 39M092

S"htotal 75.663 77.157 4.020 155,066

EquetsaProject Rent 120.676 114.396 6,105 235.857

ProJect ChargesWater Charges gi 9,480 12,72S 1.063 23.267Taxes 12,318 11.870 633 24,738Total Charges 21,798 24,594 1,696 47.734

Rent Recovery Index Cl) hi 18X 21X 28X 20X

During Project's Life I/Project Rent 440,116 534.897 25.558 1.000,571

Project CtargesVater Chargos 40,633 60,456 5.341 106,430Taxes 48,306 53.488 2,728 109.522

Total Charges 88,939 118,943 8,069 215,952

Rent Recovery Index (1) 20X 22X 32X 22X

Project Costs j/ 444,063 290,061 27,021 761,1U

Cost Recovery Index (1) 20X 41X 30X 28X

aV Year 2005 fncrerental Income expressed in 1992 prfeas.b/ Before water charges.c/ Famfly labor valued at Y3.0/day.d/ Ten percent of incremental Income.O/ Five percent of ncremental Incomef/ Ten percent of lncremental income.V/ Average water charge is Y180/ha for paddy and Y50/ha for other crops.h/ Total charge as percent of project rent.I/ Expressed as present values discounted at 124 over 30 years project life.J/ JPY of total fnvestment and oGN cost.

C*IMA

Sichuan Agriculture Developm ent Project.......................................

Swuary of Economic and Finanfial Analysis..........................................

Investment Revenue Operation cost Profit a/ ProductionBase Case up 102 domn 10 up 10X down 10X delay I year

ERR FRR ERR FRR ERR FRR ERR FRR ERR FRR ERR FRR

Total Project 25.7 - 20.42 24.02 19.0 n '1.8 . 16.82 23.82 18.52 23.82 18.82 22.02 17.72

Irrigation 23.82 20.6X 22.1% 19.12 20.72 17.72 22.62 19.42 22.02 18.92 20.52 17.92SP 32.12 28.12 29.82 26.12 27.72 24.22 30.32 26.52 29.52 25.92 26.62 23.72UP 18.72 15.82 17.42 14.62 16.22 13.52 17.72 14.92 17.32 14.52 16.52 14.02YP 16.22 14.72 15.0 13.62 14.02 12.62 15.3X 13.92 14.92 13.52 14.42 13.12

Soil Conservation 24.82 16.42 23.92 15.62 23.52 14.92 24.62 15.92 23.82 15.52 22.02 14.12

Income Generation 42.12 27.62 39.42 25.72 34.82 20.12 38.02 22.52 39.12 25.5X 34.12 23.22Nulberry & Silkworm 45.02 27.02 42.12 25.02 39.02 20.4% 42.42 22.82 41.82 24.82 36.12 22.72Youyang Goat Raising 37.42 32.22 35.02 30.22 28.62 23.82 31.42 26.22 34.8% 30.12 30.12 26.32Geese Raising 25.52 21.22 23.22 19.22 18.92 14.52 21.52 16.82 23.02 19.02 21.12 17.82Rabbit Raising 36.42 29.42 34.82 28.22 20.22 14.72 22.42 16.62 34.62 28.12 31.92 26.72

Agroprocessing 21.12 17.42 19.42 15.92 14.62 11.52 16.62 13.32 19.32 15.82 18.22 15.12Fujiang Paper Mill 19.02 15.92 17.42 14.52 14.12 11.82 16.02 13.42 17.32 14.42 16.52 13.9XPengshui Paper Mill 19.72 15.62 18.22 14.32 14.62 11.52 16.52 13.12 18.02 14.12 17.12 13.72Galinut Processing 30.02 26.42 27.62 24.32 15.52 12.92 18.82 15.92 27.42 24.02 24.72 22.02Rabbit Nair Spiming 22.92 18.72 21.02 17.12 14.92 10.72 17.12 12.82 20.82 17.02 19.52 16.22Geese Processing 26.02 21.12 24.12 19.52 15.82 10.22 17.82 12.62 24.42 19.32 22.02 18.22Cattle & Goat Processing 27.72 23.92 25.72 22.12 14.2% 10.22 16.62 13.02 25.82 21.92 23.32 20.32............................................... ...................................................................................................

,................ .................................... ........ .. ,, Total Project: Nm (122) 856 YTil Net Incremental Income 576 Y miLirrigation: PV (122) 571 r mitlMet Increinental Income 302 Yoil

a/ Revenue less operation cost.

Sichua Agriculture Development Project

E1 .nic Analysis of Ssodnmg Irrigation Coepatent(V ae 1992 P ic") ~~

with Project

W/o Pro; 1m2 13 1994 1995 1996 99"7 1998 1999 2000 2O01-21Total Crop Incme 431.713 431.713 456.694 488.738 525.004 570.081 626,G.2 647.836 661.067 667.001 669.103Crop Ijigut CostSeeds 15.668 IS6 16.063 16.412 16.755 17.201 I7.741 17.741 17.741 17.741 17.741K fertili er 28.698 28.598 31.311 33.975 36,516 39.831 4s.s36 43.838 43.e36 43,636 48.838P fert;l1zlr 20.165 20,165 21,473 22.757 23.962 25.5480 27.511 27 511 27.511 27.511 27.511K forts Ii &er 1.559 3.090 4.580 6,466 8.757 8.757 8,5 8.757 8.7S? 7.Mao.m 31.525 31.52s 52.462 33,382 34.260 85,405 36.787 36.787 36,78? 36.767 36.787Cheb;cls 5.046 5 046 5 248 5447 5637 5.815 6,184 61 6.184 6.164 6.184Anili/Neuhine 15.562 15.562 16.252 16.928 17 574 18.416 19.433 19,433 19,433 s,9433 19.433Other 14.219 14.219 14.606 14.966 15.348 15.621 16,392 16,392 16.392 16.392 16.392Labor Cost 127.161 127.161 132.373 137.489 142.369 148.737 156.429 16.429 156.429 156.429 156.429

Subattl 257.964 257.984 271,337 284.46e 296.990 313,331 333,070 333.070 33s.070 333.070 333.070Tn.s 5.06 21.586 21.566 22.845 24.437 26.250 28.644 31.315 32.392 33.053 83.350 33.455leei tion la"aestnt Cost1r.jTIon4.ODD 4 000 4.000 2.000 1.000Civil VW*k 59.254 5551O 547.098 44.928 33.615Nbterials 6.248 9.259 10,618 8.880 7.875Equipent 4.395 a 006 1,575 as 127 Vehicles 8slo6 38e86TrInti 6 54 686 150I-D"i r/Swerv ~900 So0 No0 789 800 CaOsioDA: er 476 476 47S 475 475

Subtotal 60.012 77.823 74.716 57,347 43.891

Cost of Aeri. Support ServicesCivil Work 4.707 4,707Eqwipnt 2,146Vehicles 1,005Training 790 790 526 S26menee/malltair 60 60 60 60

Subtotal 5.557 8,788 60 Sob 26terrigtion 0O Cost 882 1,76 2,540 3.520 4.900 4.900 4,900 4.900 4.900 4.900Total Cost 279.560 386.001 Sb2.607 188.221 884.69 l 391.19a 369.2s5 870,361 371.023 371.32D 871.425Net lacme 152.163 85.712 74.867 102.517 140.310 179.606 257,017 277.475 290.085 29S.662 297.678Incree_ntl Mt tcgee (06.451) (.776) (49,646) (11.853) 27.n5 104,864 125.312 13.872 148.561 145.615

fWt 22.28 lNV (t 128: 447.612-- 32.11 ENV (.t W:)s 543.220

Il

Sichuan Agriculture Oevelop.ent Project

Ecenoic Analysis For ludu Irrigption Component(_____. 1 _9_ Prices) _ ____ _ _______

With Project

W/o Proj 1m 199 1994 1998 1996 1"97 1996 1999 2000 2001 2D92 2003-21IncomeTotal Crop Income 83.260 883,260 s84,423 397.244 411.073 445,57 481,599 537,182 589,232 609.976 622.10? 627,536 629.200Hydropower 430 430 430 480 430 430 430 430

Subtotal 383,260 983,260 384.423 397.244 411.073 446,007 482.029 537.612 589,662 610,406 622.537 627.966 62s,630Crop Input Cost

Seeds 17.068 17.068 17.124 17.722 18.221 19.617 20.822 22.811 24.387 24,387 24.387 24.387 24.387N fertilizer 24.057 24.057 24.141 25.047 25.802 27,916 29.740 32,752 35.137 35.137 35.137 35.137 35.137P fertilizer 18,120 18.120 18.196 19.014 19.696 21,606 23,254 25.975 28.130 28.130 28.130 28.130 28.130K fertilizer 76 895 1.578 8.489 5.139 7.862 10.019 10.019 10.019 10.019 10.019Manure 26.714 26.714 26.739 27.002 27.221 27.836 28.366 29.242 29.936 29.936 29.936 29.936 29,936Chemical* 4.179 4.179 4,181 4.211 4.236 4.305 4.364 4.463 4,541 4,541 4,541 4.541 4,541Animl/Machine 10,476 10,476 10,522 11.010 11.417 12.556 139539 15,162 16.440 16.448 16.448 16.448 16,448Other 12.569 12.569 12.584 12.752 12.891 123282 133619 14.175 14.616 14 616 14.616 14.616 14,616Labor Cost 105,860 105,860 106,062 108.235 110,045 115.116 119,492 126.716 132.438 132438 132.438 132.438 132.436Subtotal 219.042 219.042 219.624 225.869 231,107 246.722 258,335 279.158 295.651 295,651 205.651 295,651 295,651

T7.. 5.06 19.163 19.163 19.221 9,862 20.654 22,300 24.101 26.881 29.483 30.520 31.127 31,398 31.481Irrigation Investment CoatLand 8,309 7.137 6.575 7,067 6.906 3.164Civil Voris 62.644 63,978 77.424 83.030 68 947 37, 030 Ibteriel. 6,481 11 403 10.503 11,289 9.436 S,057 0Squlpaeu,t 2,815 4 897 2.599 S.956 3,325 2,475 *'Vehicle 1,312 1.312 761Traiin 307 294 276 168 166 165o. igngle/suPe,v 2,617 3,518 3,240 3.483 2.911 1,559Adel n/Manage 605 614 750 806 674 360

Subtotal 84.090 113,353 101.366 109.800 91,65 50,571

Cot of Agri. Support ServicesCivil Voiles 3,383 3s3aEquipent 1,571Vehicle. 1,065Training 694 694 463 463Manage/mn,tor 60 60 60 60

Subtotal 4,137 6.763 60 628 463Irrigation 01) Cost 840 2,102 8.363 6,726 8,408 8.408 8,408 8.408 6.408 8.408 6,408 8,408Totsl Coet 238.205 827,273 361,064 350.540 368.709 368,59 841,416 314,446 333,542 334,679 3S5.186 336,457 335,640NMt Inico. 145.055 65,986 23,359 46.704 42,364 77.748 140,614 223,166 256,120 275.827 287.351 292,S09 294.089Incremental Net Incam (89.067)(121.695) (98.361)(102.691) (67.307) (4.441) 78,111 111,066 130,772 142,296 147.454 149,035

RR ,:16.21 Rnt t 121) 178:86E 19.06 OX EV (t 121) 291,934 _ _ .

I-',

.M

OOKt

Sicon AgrlcuS tur. i4vilopaat PieJect

o c Analysis of Ymngjiabs Irrimation Cooponet(_ _ _ 1992 Prcs) - _._----_-_-

With Project

V/0 Prej 1992 1993 I994 199 1996 197 199M 1999 20e0 20o01-21

Total Crop l1_ .. 20,798 20,79 20.798 20,79S 21.S11 24.277 30,444 31.914 32.739 33.0a 8 32.148Urban Water Supply BIB 815 SiS 815 815 315 815Sub total 20.796 20.798 20.798 20,790 22,126 24.592 30.M9 32.229 33.064 28,408 33.463

CrT" Input CostSed I 200 200 1N3 00 3800 13200 1,800 1,421 1,421 1,421 1.421 2.421k f.rtlIter 1,512 1.512 1,512 1,512 1606 1,943 2,284 2 284 2.204 2,254 2.204P f.rti Is.r 1'104 1.104 1,104 1,204 1,206 1,891 1.559 1,569 1,669 1.5L5 1.559K frtillger 0 0 168 471 52? 627 527 527 527l~~aurs 1,769I. 1,709 1,769 1,769 1,769 1.769 2.046 2,046 2,046 2,046 2,046Cte'ulcaa m236 228 2238 220 20 238 298 290 290 290 298Ani.al/lacblnw 9s4 94 954 954 954 954 1,141 1,141 1,141 1,141 1,141Otber 750 758 750 758 758 758 099 099 099 099 099Labor CogS ,7566 6.76 6,758 6,7S6 6,077 7,095 0,245 0,245 0,24s 8,245 8,245

Subeotal 14,890 14,890 14.290 14,890 14,904 15,910 18,420 18,420 18,420 10.420 10,420T. O5.05 1,040 1,040 1,040 1.040 1,106 1.280 1,538 1,611 1,658 1,670 1,673irriUea Invet_mat Cost

Clvii v.k. ~~~~ ~~~419 717 soCi IrON,s0 s 8 0,515 5,167 obt.riaol 1,487 2.763 695

,. "Uqulpmewt a82 90 III,vehicles 282 56Tralina 46 16 4oeIgmzIbriworv 407 160 100Admin/a aga s0 106 82

Subtolal 9,912 12,413 6,188 0 0Coat of Aeri. Suppot serviceoCIvIl WarS. 488 458Eqflp4eat 22Vehicles 12TraIning s0 so soNana;e/Noaltor 20 20 20 20

Sutotal 478 877 70 70IrrIgetio GM Cost 195 640 40 648 540 548 648Total Cost 15,430 25,81C 28,720 21,660 16,805 17,690 20,500 20,579 20,620 20,630 20,641the lcome 5,860 (5,017) (7,922) (070) 56,21 6,096 30,254 11,650 12.484 12,760 12,023Incremental Nat acose (CO,815) (12.290) (6,228) 452 1,528 4,880 6,202 7,066 7,290 7,455

FAm 15.06 FNV (111 0,01WUI 16.68 BPV (121) 11,856

Iw

- 108 -Annex 6

tNINA Table~

Sichumn Agricultural Developomnt Project.......................... ...........................

Selected Comnersion Factors

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

Unft Financial Economic ConversionPrice Price Price Factor,

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

Standard Conversion Factor a/ 0.98

Laborlkuskilled V/day 4.0 3.9 0.98Skilled Y/day 5.0 4.9 0.98

EnargElectricity V/kwh 0.2 0.3 1.25Diesel Y/ton 1.420 644 0.59

Steel Y/ton 1.800 2.282 1.30Earthworks 0.98Structure '10

Nachinery/Equfpmsnt 1.02

TrnsportaticnRoad Y/ton/k 25.0 37.5 1.50Rail Y/tonli 20.0 30.0 1.50

Conswution Conversion Factor b/ 1.25

FertilizerUrea Y/ton 1.000 1.190 1.20Rock Phosphate Y/ton 313 350 1.12DAP Y/ton 970 1.216 1.25

Pesticides Y/ton 30.000 30.000 1.00Plestics Y/ton 4 4 1.00

Othor non-traded inputs 0.98Other traded goodb 1.02

....................................................................................a/ (SCF) a Cofficeal rate/shadow rate) u(5.38/5.5) *0.98b/ Weighted verage of Econ/Fin prices of iheat, rice and othor grains plus beef,

pork, and other animal products in 1992 price levels.

-109- Anne 6NTabe 3

CHINA

Siehumn AgViculturl Oaelopoent Projeet................. ;w...................

Farm Gate Prices o Selected Project Outputs VWd Inputs.--. ...---.--......... ....----.. -.--------------.-----..................................... ..................................................... --

Urge Phosphate DAP Rice SIlk Ii.et Corn m.t Cotton Steele/ b/ a/ d/ / f/ 0/ h/ f/ J

TradkStatus N N N X X X X X X X..............................................................................................................................

1992 Prfees...........

EP0 pricevaS constEprice) S/ton 121 28 124 196 N/A 94 71 123 104EPO prfce( 92 price) S/ton 183 43 190 300 #/A 14" 109 135 159 0

.amlfty discluat X I 1 1 1 N/A I I I I ICcen Freight S/ton 26 26 26 26 N/A 0 0 0 159 (26)CIF/FOB Guaugthou S S/ton 211 69 216 206 6,065 129 109 135 263 454CIf/FOS uamgahou Yuen V/ton 1,136 371 1,160 1,108 32,630 696 584 728 1.413 2.442

Port charg I margin Y/ton 57 19 So (55) (1,631) 35 (29) (36) (71) (122)Raft tram. to project V/ton 18 16 16 (18) (18) 18 (1) (16) (18) (18)Road trns. to far Y/ton (20) (20) (20) (20) (20) (20) (20) (20) (20) (20)Prfce ex-,itl V/ton 1.190 387 1.216 1,015 30,960 725 517 654 1,306 2,282

ProcessIng adjustm nt I I I I I I I I I INiltingo toless byprod cY/ton 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0Econcmic Price Y/ton 1,190 387 1,216 812 30,960' 728 517 654 1.306 2,282FinnciaL Price V/ton 1.000 350 1,000 760 102,500 740 720 450 698 1,800

2000 Prices...........

Do price('85 pr) S/ton 120 31 143 197 N/A 139 83 150 1210n pricsC*91 pr) S/ton 163 47 219 301 N/A 212 127 165 18S 505

Quallty diwccmut 1 1 1 1 N/A I I I I IOceon Frelght S/ton 26 26 26 26 N/A 0 0 0 16S (26)CGF/FOB Shanghal S S/ton 210 74 245 207 6.065 191 127 165 306 479CIF/FOS Shanghai ru.,. /ton 1,127 396 1,317 1,113 32,630 1,029 683 M 1,6$6 2,576

Port charges & margin Y/ton 56 20 66 (56) (1,631) (51) (34) (44) (82) (129)Rail trns. to project V/ton 16 18 18 (18) (18) 18 (18) (18) (18) (18)Road trns. to farm Y/ton (20) (20) (20) (20) (20) (20) (20) (20) (20) (20)Prfce exmtll Y/ton 1,182 413 1,380 1,019 30,960 975 611 805 1,526 2,410

Processing adjustmnt X I I I 1 1 1 1 1 1 INitling cost lesusb-produiY/ton 0 0 0 0 0 0 0 0 0 0

Economic Price Y/ton 1,182 413 1.380 815 30,960 975 611 805 1,526 2,410Financial Prfce Y/ton 1,167 406 1,380 815 30,960 975 611 805 1,526 2,410..............................................................................................................................

a/ Bagged, FOB, N.W. Europebi Phosphate Rock(No mcc n), 72X 0PL, FAS Casablancac/ (Dfasmonfu Phosphate), butk, spot, FOB US Gutfd/ Rice (Thai), wfite, milled, 5X broken, government standard, FO0 Bengkok*/ Silk, China PO *etuel. Novwber 1991.f/ Wheat (Canadian), No.1 Western Red spring 13.5X, In store, St. Laurene, FOB.g/ Corn (US), vo.2, Yeltou, FOB Gutf portsh/ Tee (London auctfon), avennae price receIved for all teas.I/ Cotton (outlook A- findex), Nddlfng (1-3/320), CIF, Europe.J/ Steel coaposite price Index from Japan, Novesder 1991.

wmA

Sichuan Agriculture _ovolopmet Projoct

Prices of Farm Products at Gov. Contract, Negotiated, and Market Prices(V/kg_ ___ _ - - _- __ _ _ -

Paddy Rice U..t Corn B"ns Soybean S.Potato Rapesood Cotton a/Y"r --

S.C CNg Mkt S.C Ng Mkt S.C Neg Mkt O.c Nag Mkt Nog Mkt Neg Mkt Mkt G.C Hbg Ukt C.C

1986 0.88 0.41 0.50 0.47 0.57 0.71 0.41 0.44 0.52 0.85 0.42 0.54 0.52 0.80 0.80 0.9K 0.20 0.94 8.24

1987 0.86 0.51 0.58 0.61 0.71 0.84 0.41 0.54 0.61 0.85 0.50 0.60 0.52 0.85 0.80 1.12 0.22 0.94 1.36 8.38

1988 0.6 0.68 0.81 0.51 0.96 1.16 0.44 0.64 0.78 0.48 0.52 0.72 0.52 1.06 0.80 1.89 0.24 1.07 1.6e 1.70 4.51

1989 0.46 0.90 1.03 0.86 1.25 1.46 0.49 0.64 1.04 0.45 0.86 0.96 0.72 1.10 1.20 1.97 0.25 1.10 1.66 1.70 5.31

1990 0.46 0.68 0.79 0.65 0.95 1.10 .0.47 0.64 0.s8 0.45 0.65 0.76 0.72 1.04 1.20 1.74 0.24 1.58 1.66 1.60 6.98

a/ IOOX government contrat

Ia

S

- inl -

Annex 7Table 1I

SI@61 AGNSCMWM. afEU.A".r ,RWrKeg t lU l o ladieete.

ftje.eel Pegrese Z8ioalefte. SA CVM$lSi.. PFWAmd Actual A~$.8 *5.6 e1e A1.INmelTI ereSt Thie Ye..- Me. Yeav PireS leap- SeseAd Ieee ThIePd Veee Fm.pU. WeO. F Veer

* emah CAmflofel _ . .?* ae Case I l km a

~~~~~~~~ * tmS ltz el, hi* es,d, Z ^trTwZtwi_*dft

Sup-P.0&en Dhe4* .br.11ale 01b5dm km

2. lag eS e.inee

t Cmel T run 01D h

* 1S.Fer 0151 he

St. Wade U..FeJa

* mas Cam l in

10 Di Oakw

- Ie.el Caml he* ree15m Ditch-sot *w1@1a C_*t in

* Aw 0 l Ce ne

* 5.6Fm. Sla h4. Tb Dlie ie

So f-m Oa ub h

*-4rlol t % _** Imegie F.ei ram

*1.fe,Siiee lamPteiedesmRaeeeetrcto amemsielam

ee Cemme me.S." t. Cam .cwt_ tooll. e_"ur Z

3. Ue.i Camae, alm Pee Jea. ue.mewe Oem AV"e

* isesleela TiemmemSt he* eeme ow _he

als-itelmse Dom A&.. h* UelIieal Tres-sme,

TerraeingOther pi-eW 111meo..im Verb

*. Flm Flemle & -lmee hec. ell plea"tim heCi. mee Medi4el pFlee heC. ime" lphime ma i he

F. Ps" Groeing Tree P1mmAle he

1. Walbarep a Cogs. Pee.- Helhrin FleeSis he* Ce 11eseheld leC

4IFpeed;.# Soiehlem

. te"osi r; RaeO2 reeglesa mam eed w

-i Cses Ibi-irm; h1Wal zee-TeehmeeIl /Frahaeim Ceeee ..

.Tee Fehehi I lead..m he*. Ge. e a,es ifeteWee too4. _ee Neeleim Ic Fegeal .5. See.. hi"Reisimg im Blee me

6. mIl fte.ee 4._ SAe. e

L. teelee heltme &§ Tegim

I. dAmeetle Teiml pe

Q*s*. _ met_ PPONO

F. , _ ehmllem me

IL TSiell Camee ac * TemPe. _ e T"leeme

Perum.. me.iniUre tler_id_ oskd sm.

*Fees Tehlee me.poemere me.$Tis NeheSl*iSedl

Fe.. Tlml_e m.11*04_ _.

* Umee1eso

P.m Ted me.

- *t_ n.me& i

.o.e.m T_elmimg1edpW Tow m

d*_, _.no

I.S. e.-e de"

S. Zadm "eesi _.ml1.dm G

- 112- Annex 7Table 2

CHINA

SICHUAN AGRICULTURE DEVELOPMENT PROJECT

SANK SUPERVISION INPUT INTO KEY ACTIVITIES

Aproximate 1/Dotes Expected Skill Staff Input

(month/year) Activity Requiremont

9/92 Supervision Mission Agrofndustries 10.0

Project Launch Workshop. Irrigatfon EngineeringReview of draft final Economicsdesigns for agro-industries, ProcurementIrrigation nd drainage FinnciaL Nanagementschemes, procurement ndfinancial management.Reporting and N & E.

12/92 Review of final designs for Agroindustries 2.0agrondust-ies, livestock, Irrigation Engineernd irrigation.

6/93 Supervision Mission

Review of irrigation, Agriculturist 8.0ggriculture, sericulture Sericulturisttee, soil conservation, and SoiL Conservation/tivestock development. Livestock Specialist

6/94 Supervisfon MissionEconomist 8.0

Review of agriculture, Environmentalisttivestock, irrigation Agronomist/Livestockand drainage. Covernment Specialistprepares for Mid-term review. Irrigation Engineer

12/94 Mid-term Review MissionEconomist 10.0

Irrigation, agricutture, soil Agriculturistconservation, sericulture, tea, Sericulturistend livestock development, Solt Conservation/agrofndustries. Livestock/AgroindustrIes

Specialist

6/95 Supervfon Mission

Government and Sichuan Province Government/IDA teams 8.0to ipletent Recomendatlons ofMid-term Review nd decide on thenature of future supervisionmissions. (Ffeld trip my be neededto follow-ip mid-term results).

1996-1998 At lest one supervision/year nd (to be determinedlast mision should discuss with following Mid-term Review)borrower preparation of CoapletionReport.

I/ First two years will be initially devoted to review of desins and construction foragroindustries, Irrigation and drafnage In accordanee with Implementation ScheduleChart 1. Some specialists my visit the project area uhile undertaking other operations.

-113 - Annex 8Page 1 of 3

SUMMARY 0P DAM SAPETY REVIEW PANELSHENGZHONG AND YANGJIABA DAMS

Introduction: In accordance with the World Bank procedures on dam safetythe borrower was required to engage an independent Dam Safety Review Panel(DSRP) to review the existing Shenshong dam and proposed Qangjiaba dam. inJune 1991, a Bank pre-appraisal mission and the Sichuan Water ConservancyBureau (WCB) agreed on terms of reference and the membership of the DSRP toinspect and evaluate the safety status of the Shengzhong and Yangjiaba Dams.

Memberships The DSRP consisted of four Chinese experts and one foreignexpert. The members of the panel were: 1.) Prof. Li Guo-ren, ChengduUniversity of Science and Technology; panel leader; expert in dam structures.2.) Dr. Sergio Giudici, Hydro Electric Commission, Tasmania, Australia; expertin dam design and instrumentation. 3.) Mr. Liang Tian-you, HydraulicEngineering Consulting Centre, Ministry of Water Resources, P. R. C.; expertin dam construction. 4.) Mr. Yu Ke-li, Hydraulic Engineering ConsultingCentre, Ministry of Water Resources, P; R. C.; expert in geology. 5.) Mr. XuZhao-cheng, Sichuan Hydrology and Water Resources Bureau; expert in hydrology.

Summary Conclusions for Shengzhong Dam: The following summarizes theconclusions, of the Panel:

(a) Dam: The dam has been well-designed, carefully monitored and properlyconstructed. There are no signs of stress and no records of leakage observed,which shows an exceptionally watertight structure.

(b) Spiliway:

(i) Structurally the spillway has performed well, as demonstrated byrecords of the instrumentation. The inspection revealed several items where,while not causing concern for the safety of the structure, should be attendedto by the WCB to ensure long-term integrity of maintenance.

(,) The mechanical equipment to open the gates was demonstrated duringLnspection by first opening one of the radial gates while the upstream guardgate was 6losed, and then opening another radial gate and allowing spill tooccur. The panel made recommendations to improve maintenance and long-termmechanical reliability.

(iii) Flood hydrology and flood events were determined to be correctlycomputed. Spillway operation plans were found to be adequate.

(c) Umptying Structures: The dewatering capability of sc.-ctures issatisfactory. The panel observed the intake mechanism and observed the outletgate while it was operated The tunnel could not be inspected, but on thebasis of the drawings and observations on site, the DSRP made severalrecommendations to ensure that the tunnel and the mechanical equipment remainsln good order.

(d) Nmrgency Plans: warning systems from upstream, of impending floodingevents, and for warning the downstream population are satisfactory but needimprovement in communications.

Recoumendations for Action-Sheagzhong Dam: Overall, the Panel is satisfiedthat the Shergzhong Dam and its appurtenances are safe. The panel made thefollowing recommendations for ensuring the long-term safe operation ofShengzhong Dam, (none are of immediate concern for the dam safety) the SichuanWCB attend to these matters and report progress within a year. The panelrecommended that an inspection of the dewatering tunnel be made to check onpossible cracking of the concrete lining as well as inspection of the bulkheadand tunnel entrance.

(i) An emergency plan and procedures are be to prepared for evacuation

-114 - Annex 8

Page 2 of 3

of the population downstream of the dam, when large floods are to be passedthrough normal operation of the spillway.

(ii) Communication equipment (radios, installation of power supply,feed lines, etc.) should be improved and maintained in good working order.

(iii) A standby generator should be acquired and installed near the damcrest to provide emergency power for the spillway gate operation should themain power supply fail.

Summary Conclusion for Yangjiaba Dam:

(a) Design Flood and Hydrology: Conforms to class 3 of the PRC rulesregulating dam design values and is satisfactory.

(b) Goological Conditions: The conglomerate rock of the damsite is sound andprovides suitable material for the foundations of the arch dam. Foundationstability is satisfactory. Treatment of a seam on the left bank is part ofthe specified design. Some further excavation on the right bank wasrecommended.

(c) Design of the Dam: The design strategy, design data and method ofanalysis all conform to modern design practice. The stress values calculatedare within PRC- specified limits. Because this dam is of sandwichconstruction, i.e., a concrete layer between masonry faces, some of the designparameters had to be obtained by exercising reasonable judgement based onexperience. However, this does not affect the conclusion.

(d) Construction of the Dan: The Panel recommended that the constructionmethods be improved, mainly with respect to the quality of the concrete.Since the dam is 47% concrete and 53% masonry blocks, concrete quality andcontrol are important.Overall, the Panel concluded that Yangjiaba Dam is well designed and safeprovided that a reasonable increase in construction quality is achieved tomeet the design requirements.

Recommendations for Action - Yang$iAba Dam:

(a) It was recommended that the wingwall or key be built on the end of thethrust block in order to increase the length of waterpath. (b) Removal ofsome shear zones evident in the excavation, and correct shaping of theexcavation plane is necessary plus additional grouting near the elevation ofthe shear zones is required. (c) Because of the high hydraulic gradientthrough the concrete membrane between the upstream and downstream masonry, theconcrete impermeability index used should be S8 instead of the currentlyspecified S6. Concrete design should be done using correct proportioningbetween the large and small size aggregates. (d) The variation in masonrysize is quite large. Quality control is necessary to ensure that thethickness of the concrete membrane is not reduced by masonry intrusions.(e)Density Tests in the dam should be done in accordance with the specification.(f) Deformation measurements of the top of the dam should be taken as thereservoir fills and at regular intervals thereafter. This will be a goodindex of dam performance. (g) to help operation of the reservoir, some raingauges should be placed upstream of the dam in the catchment area.

Follow-up Actions: In November 1991, the appraisal mission reviewed theDSRPs detailed recommendation lists with the Sichuan WCB and the engineeringstaff at the dam site. Modifications of the excavation limits and foundationpreparation made by the DSRP were undertaken. Revisions in the concreteaggregate gradation materials handling, mix and quality control measures werebeing implemented. More senior staff were assigned and additional personnelwere brought to monitor construction quality.

At Shengzhong Dam the procurement for the emergency generator had been

- 115 - Annex 8Page 3 of 3

initiated. Installation li scheduled for March 1992. Other LnspectLons,emergency plans, and procedures for monitoring were beLng Lmplemented by theOhM unit.

The full report of the DSRP is on file in the Bank.

Basic Data

Dam Shengshong Yangliaba

Type Composite Concrete Concrete/StoneGravity/Earthfill Masonry Arch.

Maxlmum Height 79.0 m 53.3 m

Crest Length 420 m 110 m

Splllway Gated Overflow Separate Channel Ungated

Maximum Storage 339 million e 26.4 million m?

Spillway Capacity 10,020 m3/esee. 266 e3/sec.

Catchment Area 1,756 K.e 23.5 Kme

-116-Annaz 9

Pa92 I of 6

SICHUAN AGRICULTURAL DEVELOPENT PROJECT

Environmental Assessment/Monitorina and Mana@ement Plan

I. Environmental Assessment

1.1 A detailed and comprehensive environmental assessment of theproject has been carried out by the Sichuan Research Institute ofEnvironmental Protection (SRIEP). The report was reviewed by IDA and revisedby SRIEP based on IDA's comments and recommendations. A copy of the EA is int%e project file.

1.2 Opinions of both the public and appropriate government agencieswere solicited concerning the projects potential social, economic, andenvironmental impacts. A sample of 254 persons was surveyed in the projectarea and the results showed generally positive opinions both from the generalpublic and local government agencies. The main concerns of the public werehealth and water quality impacts from agroprocessing plants, the le-al ofincreased income/economic development that might be expected, the potentialfor overall reduction in the areas of annually cultivated lands, and increasedsupply of potable water.

1.3 An evaluation to identify the project's potential environmentalimpacts was carried out by a multidisciplinary team of 30 experts fromProvincial bureaus and institutions of agriculture, animal husbandry,forestry, fisheries, irrigation, environmental protection, agroprocessing,chemical engineering and social sciences. Each project subcomponent wasreviewed to evaluate its potential (positive and negative) impacts on thenatural environment (air, soil, water, natural and domestic plant/animalcommunities, landscape, and noise), and the social environment (economy,culture, traffic, energy, and public health). The main findings of theevaluation were:

i) overall, the sum of project impacts would be positive;ii) the agroprocessing and paper mill subcomponents have the greatest

potentially negative impacts;iii) the potential negative impacts from the irrigation components consist of

those associated with increased pesticide usage and increased croppingintensity on soil fertility;

iv) ti-s soil conservation, forestry and livestock subcomponents areuniformally positive with the exception of potential minor negativeimpacts from animal manures (health) and loss of annual crop lands(social/economic).

1.4 Wudu Barrage. The impact of this irrigation component on thecurrent flow regimes in the contributing rivers would be negligible. The FuJiang River has an average annual flow of about 5000 Mm3 at the Wudu Projectheadwork, of which about 850 Mm3 would be diverted for irrigation. Anestimated 200Mm3 would be returned downstream via natural drainage. The waterquality of the supply is good, therefore drainage water would be usable for

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irrigation. The water resources operational plan requires a minimum flow of50m0/s, be maintained below the barrage to meet dry season demands for M&I,navigsation and environmental protection. No watershed management/siltationissues are associated with this component, silt content of inflows will bemonitored and a do-silting basin constructed if and when warranted.

1.5 Yangjiaba Reservoir. Closure of the dam will have a slightimpact on flows downstream, seasonally dewatering a 2 kilometer stretch ofriver. As this phenomenon occurs naturally and on a regular basis in the dryseason, little or no impact on riparian communities is expected. To assuredrinking and irrigation water to the three affected households, two wells willbe rehabilitated and a small pond constructed. No water quality or watershedmanagement/siltation issues are associated with the reservoir. A plan forreservoir clearing is in place; population density in the watershed is lightand there exist neither towns nor industrial pollution sources; cultivatedarea within the wateished is less than 60 ha; the w-tershed is more than 60%forested; and current nitrogen and phosphate levels in the Zengjiahe River arenegligible. Silt inflows under present conditions are such that the life spanof the reservoir is estimated at over 100 years; a watershed managementprogram is in place and watershed conditions are expected to improve withtime. The project would fund a water quality monitoring/management scheme forthe reservoir.

1.6 Resettlement. A total of 132 households and 564 persons fromtwo villages will be involuntarily resettled as a consequence of the Yangjiabadam construction. Although the dam is not a part of the proposed project, IDAhas agreed with the Sichuan Provincial Government that the resettlement wouldbe carried out according to the provincial resettlement standards already inplace for other large resettlements (e.g. Ertan Hydro dam in Sichuan). Theresettlement plan has been submitted to IDA for review. Right-of-way forcanal construction, reportedly already obtained would require an estimated 400ha. The majority of main and sub-main canals would be laid out along ridgelines and kept at higher elevations to maximize the area that can be served bygravity fed irrigation and very few structures are located in agriculturalfields.

1.7 The per capita loss of cultivated land (primarily rainfed, somesupplemental irrigation contract system) and forest land is 0.068 ha and 0.04ha, respectively. Following resettlement the per capita holding (under thepersonal responsibility contract system) will be 0.067 ha of irrigated landand 0.17 ha of forest land system. Some reductions in the amount of cultivatedlands will occur in the resettlement areas, however, the increasedproductivity resulting from dependable irrigation will more than offset thelosses. During the 18 to 24 month period between resettlement and theinitiation of irrigation some compensatory actions may be required to avoidtemporary loss of income amongst those in the resettlement areas; an IDA-approved plan for this transition will be available before negotiations.

1.8 Under the resettlement plan, individual households would becompensated for their losses based on the replacement values. On the average,each household will receive Y4,820 over and above replacement values, whichfunds will be utilized to develop their agricultural production. The totalcompensation package would meet IDA guidelines which specify that at a minimumthose resettled should be as well off and preferably better off than prior to

_118 -Annex 9

* ~~~~~~~~~~~~Page 3 of 6

their resettlement. An assurance that implementation of the resettlementadheres to this principle will be agreed upon at negotiations.

1.9 Shenzhong Reservoir. This dam was completed in 1982 and thereservoir has been filled since 1984. Water quality in the reservoir meetsChinese Class II surface water standards, except for total phosphorus. Theerosion/siltation situation in the watershed is classified as "medium" by theChinese, that is, 50% of the watershed area is estimated to be eroding at theaverage rate of 32 t/ha/yr of soil. A watershed management program Is ongoingand the watershed itself is considered to be a key area for control of soilloss, as a result all of Nanbu County's funds and one-half of Jiange County'sfunds for soil conservancy are being utilized in this watershed. Between 1980and 1990 more than Y6.8 million was invested to control erosion over 470 km2,reducing the erosion area by about 25%. Targets for the 1990 to 2000watershed management plan are to reduce the current area of acceleratederosion by almost 50%. Under the projected conditions, the life span of thereservoir is estimated to be over 100 years. The project would fund a waterquality monitoring/management scheme for the reservoir.

1.10 Increased Agrochemical Usage. The concern in intensifyingagricultural production is increased use of chemical fertilizers andpesticides. An analysis of pesticide usage in the project areas shows thatthe total amount of pesticides used has been in decline over the last tenyears. Additionally, the trend has been away from high-toxicity, persistentchemicals toward more environmentally benign chemicals. For example, besidesthe discontinuance of BHC and DDT, the use of the more hazardous and broadspectrum chemicals (for example, Parathion and Fenvalerate) is steadilydeclining. Decline is reportedly attributable to substitution for otherchemicals (for example, Dimethoate to Nissorun -- a Class IV pesticide -- oncitrus) and the increased usage of IPM practices. Throughout the province,and including the project areas, IPM was reportedly being practiced on onemillion ha of paddy land as of 1991, resulting in pesticide-use reductions ofone-half to one-third. To support the trend in reduced usage of agrochemicals(both of quantity and of certain types) the project would fund both trainingand demonstrations of IPM, training on proper use and handling ofagrochemicals for farmers and technicians, and the project would also includefunding for fertilizer field trials to rationalize application rates.Additionally, assurances would be obtained that pesticides to be providedunder the project would be subject to IDA review and approval.

1.11 Agroprocessin . In addition to the previously mentioned effluentcontrol and treatment measures referred to in the SAR, (paras. 3.30 to 3.33)which have been included in the design and for which adequate budgetaryprovisions have been made in order to meet both national EPB and IDAstandards, the project would also provide technical assistance for expertreview of design adequacy and strengthen the existing monitoring system foreffluent and water quality. The monitoring system will be a check to ensurethe proper maintenance and function of the treatment facilities.

1.12 Soil Conservation and Forestrv. The Soil ConservationDemonstration subprojects will focus on verification and dissemination of landuse practices and technologies which provide economic alternatives to presentnon-sustainable cropping practices. It is expected that the impacts from thetwo demos will extend well beyond the small areas directly covered. At

-119 -

* ~~~~~~~~~~~~Page 4 of 6

completion they will provide an expanded menu of technology options for landmanagement in the uplands and a trained cadre of technical staff that candisseminate the technologies and approaches to other priority areas of theprovince. In addition, the forestry-related subprojects will introduce soilconservation and management practices in all revegetation activities. Allplanting work will be carried out on the contour, further, demonstration plotsutilizing contour V-ditches and contour trench plantings and contour hedgerowplantings for biomass production will be included. Forest plantings will beprotected from collection of tree litter to avoid baring soil and theplantations will be thinned in a timely manner to avoid shading out thegroundcovering undergrowth. Also, all plantations will be required to meetthe Government's environmental guidelines for plantation establishment; theguidelines have been reviewed and accepted by the World Bank.

1.3 Livestock. The livestock sub-component would include a grasslandmonitoring system to identify areas threatened with overgrazing and allowadjustment of animal distribution and (if necessary) stocking rates (para.3.8). All sub-projects will operate either under year around or seasonal cut-and-carry management, this will contribute significantly to the local farmingsystems through production of needed manures.

II. Environmental Monitoring Program

2.1 The project would support a comprehensive program of monitoringenvironmental parAmeters associated with project activities and whichestablishes linkages between monitoring and agencies responsible for oversightand compliance with Chinese national environmental protection laws andregulations. The estimated cost over the life of the project is Y1.5 millionand would include funds for :

i) technical assistance and hiring of consultants to review designs andprograms for pollution control/treatment facilities for agroprocessing;

ii) monitoring of wastewater discharges from treatment facilities and waterquality at six agroprocessing sites;

iii) monitoring of water quality and pesticide residues in irrigation projectareas;

iv) technical training of staff from county and prefectural level monitoringstations.

Additional monitoring activities would funded by the project within specificsubcomponents. These are the grassland monitoring system to be funded fromthe livestock subcomponent and the monitoring of soil loss, runoff and cropyields to be funded under the Soil Conservation Demonstrations.

2.2 Monitoring Program. Environmental monitoring would be carriedout by the PMO, the Sichuan Environmental Monitoring Center (SEMC), therelevant prefectural (or municipality) and county Environmental MonitoringStations (EMS), as well as the internal monitoring units of the relevant lineagencies (agriculture, livestock and forestry) at the prefectural (ormunicipality) level.

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pgeo 5 of 6

- The PHO would coordinate the monitoring program and providereports to both IDA and the Sichuan Environmental ProtectionBureau on the programs findings.

- The SEMC would have overall responsibility for the implementationof monitoring activities and provides the monitoring data to thePMO. In addition, SEMC would be directly responsible for themonitoring and analysis of samples from the irrigation areas foragrochemical residues or contamination and for providing technicalassistance and training to the prefectural and county-level EMSs.

- The prefectural and county EMSs would be responsible for samplecollection as well as being entrusted to carry out some monitoringand analysis of wastewater discharge from the agroprocessingfacilities -- analysis that cannot be handled at this level wouldbe carried out at SEMC. The EMSs at these levels would also beresponsible to check on the operation of the treatment facilities.All data collected would be provided to the SEMC.

- Monitoring and reporting activities for agricultural pests anddiseases, crop growth and yield, and fertilizer and pesticide usewould be carried out by the county-level agricultural bureaus,with reports to the prefectural PMOs. Monitoring and reportingactivities for the grassland monitoring system (stocking, grazingrates, grass yields) would be carried out by the prefecturalLivestock Bureau, with reports to the prefectural PM0. Monitoringand reporting activities for forestry and soil conservation wouldbe the responsibility of the relevant county-level forestry andsoil conservancy bureaus, with reports to the prefectural PMOs.

2.3 Institutional support would be provided in the form of training,operating funds, technical assistance. The SEMC will require no upgradingunder the project. It is a Grade II monitoring station and the center for theSichuan's overall monitoring program, it has up-to-date laboratory equipmentand well-qualified technical staff. SEMC has been in operation for over tenyears. Some upgrading of equipment may be required at prefectural and county-level EKSs, funds for such equipment are being sought by the EMSs from theprovincial government.

2.4 Monitoring Activities.

i) hiring of expert consultants to review the designs for thepollution control/wastewater treatment facilities foragroprocessing subcomponents - Y60,000;

ii) monitoring of and analysis of samples from agroprocessing plantdischarges, downstream water quality, operation of pollutioncontrol/wastewater treatment facilities - Y241,000/yr;

iii) monitoring of and analysis of samples for agrochemical residuesand contamination - Y55,000/yr;

iv) technical training of EMS staff from one prefectural and sevencounty stations (4 persons/station x 6 months) - Y108,000;

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Page 6 gf 6

2.5 Information collected through the monitoring activities andcompiled within the provincial PMO would provide the basis to assure thatproject subcomponents comply with Chinese National Environmental ProtectionLaws and Regulations as well as IDA guidelines. Where noncompliance exists,it would be the responsibility of the provincial PMO to provide guidance, withprovincial EPB approval, to prefectural PMOs as to necessary actions. Theprefectural PMOs, in coordination with the prefectural EPBs, would beresponsible for designing the specific interventions required to achievecompliance. Under the supervision of the prefectural PMO and EPB, the countyPMO would assure implementation either by the relevant county bureau orconstruction unit.

- 122 - Annex 10

CHINA

Sichuan Agricultural Development Project

Selected Documents and Data Available in the Project File

A. Reports and Studies Related to the Project

A. 1 The Eighth Five-Year Plan for Sichuan Provincial AgriculturalDevelopment by Sichuan Provincial Planning and EconomicCommlosson, June 1990

A.2 Sichuan Agrlcultural Development Project, FAO/CP PreparationReport: Poverty Studies and Soll Conservatlon Component(two volumes), May 1992

A.3 Feasibillty StudLes for Irrigation--SP, WP and YP schemes

A.4 Feasibillty Studies for Soil Conservation Demonstratlon Areas(two volumes)

A.5 Feasibility Studies for Forestry(seven volumes)

A.6 Feasibillty Studies for Sericulture

A.7 Feasibility Studies for livestock(three volumes)

A.$ FoaeLbillty Studies for Agroprocesming(sLx volumes)

A.9 Grassland Management Plan, prepared by Slchuan ProvincialAnimal Husbandry Bureau, January 1992

A.10 Dam Safety Review Report, prepared by InternationalDam Safety Revlew Panel, September, 1991

A. 11 Environmental impact Aossesment Report, Main Reportand revised Chapters S & 6, prepared by Sichuan ResearchInstitute for Environmental Protection, November 1991and January 1992

S. WorkLng Papers

3.1 Project Costs3.2 Livestock3.3 Sericulture8.4 Agroprocesolng8.5 Economic and Financial Analysis8.6 Soil ConservatLon and Forestry8.7 Agricultural Support Services

- 123 - Chart I

CHINA

SICHUAN AGRICULTUIRAL DEVELOPMENT PROJECT_____________ IMPLEMENTATION SCHEDULE

OALIOCAR YEAR [ 992 1993 1994 log5 1996 10g? iigITUM aQUARTER 12 1 3 I 4 ti2 3 4 2 3 4I2 3 A 1 '12 3 4 i 2 2 4 I I a

IRRIGATION SYSTEMS I jIili Ii S)4ENGZI4ON SUS.RO.ECT (S.P.) H1 t

atanch Aflrai Canal ( 106.7un) Ii ---- ---

Branch Canal (28.61ul) I*fm ,Ei E

Sujb.SWaCh Canal (65.6km)II

Trunk Ditch (284.7kM)-

Farm Ditrh (1327.2km)

Sub-parm Ditch (1296.0kn) .......WUDU SUS.PROJECT(M.P.) 1 1 I I l* II

General Afleria Canal (12.2km)

Artertia Canal (69.6kmn) *IiIEEI

1Branch Arteriai Canal ( 39.0km) .~ ... .

Brnuwh Canal ( 75.Bkm)-.. .. I

Sub.Sranch Canal (103.4km)

Trunk Ditch (397.8m)T

Farm Ditch (I1163.1 km) .. .

SubFarm Ditch (713.7km)- ur

YANt4GJASASUB-PRO.JECT (Y.P.) T j it t iSub.Sranich Canal (.51.0k)--I ---.--- ::.L 5 Ir TTrunk Ditch (34.2km I:~Iiiu:inur

Farm Ditch (108.0m ------

AGRIC. SUPPORT-S6rzFMCES a INPUTS J))*U

SOIL CONSERVATION IIIII IIGuangyuan Sodl C. Oemortstralln

Oianjiang Sodl C. Demonstration

Fast Growing Trees

Paulownia and Chinese Toon

Gall Planting

Chinese Medidnal Plant . .-

Chinew AlpieRush ' i i Ii

INCOME GENERATION--

Tea Rehabilitation

Goat Raiong . 5.-

RabtRaising

AORO.4NOUS1RIES

Mianyang Paper MINi

Pengshuw Pulp MINiI

Rabbit Hair Procesaang .I .. . *El SmumiU mI

Gauinut Processing.

Goat meat Processing...; .utm m ..

Gleeoe Processing-plfi rocurement, Field II

4EYDesgn and Preparation -r-'WoladCnIuion.. .... era iniPouto


Project Organization Chart

|ProvincialGovernment

ProvincialLeading Groupl

Prefecture ProvincialGovernment PMO

Prefecture Provincial___ ___ Leading Group . .Bureaus' PMO £

County Prefecture IGovernment PMO I

__ I __County I ____ I t Prefecture __l__ j Leading Group . Bureaus' PMO

Township CountyGovernment PMo

| Co'unty lIBurealus" PMO 0 |

'HQ#4GnAJ C OAr7 SSAANX

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31.

106-~~~~~~~~~~~~3

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SICHUAN AGRICULTURAL DEVELOPMENT PROJECT) .IRRIGATION COMPONENT

IZZi rem oncnsaiaah> \\ >e- Em1N fOASThEi \ L \

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/ ! / . g2 C ,i ~~~DEVELOPMENT PROJECT{ .>- t m a - 9 i X TYPICAL TRUNK DITCH, FARM DITCHIAAND SUB FARM DTCH INTEGRTION

Shuongfels ll^^^1n° / gfJ )/ ~WITH NEW SYSTEM_;~~~~~~~/ DEEOMN PRO JECT

TYPICAL TRUNK DITCH, FARM DITHI AND SUB J-FARM DITCH IE

... SUJB FAR OMKHES

TUNNrl6iT. Xk~v

W- CO'NTOUR IN AERS

METERS

SCHEMATIC LAYOUT OF YUTAI DITCH

TRUNK DITCH

SUB FARM DITCH

SUS FARM DITCH

FARM DITCH IJ

FARM DITCH

OlmnOwo 709l Yt, OI ~~~"te" .s 9 ) < ~~~~~~~~~~~~~~~~~~~SUB fARMI DITCH

cnao ouaw -

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IBRD 23480

t. MONGOtLA *~ -, . 106 CHINA 110


PROJECT AREAS

SEA 5SI , H p+* AGRO PROCESSING PLANTS

A. ^ W . fi CHINESE MEDICAL PLANT

A MULBERRY AND COCOON PRODUCTIONt L m , eAs r t GEESE RAISING

iS<.4 % i X FA r o GOAT RAISING

34Y ( f /O TEA REHABIUTATION 34-

.+ CHINESE ALPINE RUSHt8--xcMo.cun. * SOIL CONSERVATION DEMONSTRATION

.$4C4U^offofie' RABBIT RAISINGChW&

________________________SEA of J PAULOWNIA, CHINESE TOON AND GALL

. 104 ,_ 0 SELECTEDTOWNS

0 PREFECTURE CAPITALS

AA Su o i @ PROVINCE CAPITALABA, ROADS

ZAN55e' \<, t ti RAILROADSt \ '^,, t g R <- .- e PREFECTLiRE BOUNDARIES _,,

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