-Ap, i 1 -S3., 199 Gdocuments1.worldbank.org/curated/en/399641468746710878/... · 2016. 7. 17. · -Ap, i 1 -S3., 199 G Rural and Social Development Operations Division ... (1994-2000)

Document of

The World Bank

Report No. 15163-CHA

STAFF APPRAISAL REPORT

CHINA

GANSU HEEX CORRIDOR PROJECT

-Ap, i 1 -S3., 199 G

Rural and Social Development Operations DivisionChina and Mongolia DepartmentEast Asia and Pacific Region

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CURRENCY EQUIVALENTS(as of December 1995)

Currency Unit = Yuan (Y)Y 1.00 = $0.1191.00 8.40

FISCAL YEAR

January 1 - December 31

WEIGHTS AND MEASURES

1 meter (m) = 3.26 feetI kilometer(km) = 0.62 miles

I hectare (ha) = 15 mu1 ton (t) = 1,000 kg

= 2,204 pounds

ABBREVIATIONS AND ACRONYMS

CESLG = County Emigration/Settlement Leading Groupcms = cubic meter per secondCSO = County Settlement OfficeEAP = Environmental Action PlanEIA = Environmental Impact AssessmentEIRR = Economic internal rate of returnGBWR = Gansu Bureau of Water ResourcesGPIO = Gansu World Bank Projects Implementation OfficeGWBPIC = Gansu World Bank Projects implementation CommissionIBRD = International Bank for Reconstruction and DevelopmentICB = International Competitive BiddingIDA = International Development AssociationLGCC = Local Government Consultative CommitteeMm3 = million cubic metersMED = Monitoring & Evaluation Division (PMB)NCB = National Competitive BiddingNRCR = National Research Center for ResettlementOED = Operations Evaluation Department (Bank Group)PILG = Project Implementation Leading GroupPMB = Shule River Project Management BureauSACC = Settlement Advisory & Coordination CommitteeSOE = Statement of ExpendituresSRWCMO = Shule River Water Conservancy Management OfficeSSSD = Settlement & Social Services Division (PMB)"Three North" = North, Northwest and Northeast China8-7 Plan = China's National Seven-Year Plan for Poverty Reduction (1994-2000)

CHINA

GANSU HEXI CORRIDOR PROJECT

LOAN/CREDIT AND PROJECT SUMMARY

Borrower: People's Republic of China

Beneficiaries: Gansu Province

Poverty: Program of Targeted Interventions

Amount: Loan: $60 million

Credit: SDR 61.8 million ($90 million equivalent)

Terms: Loan: 20 years, including 5 years of grace, at the Bank'sstandard interest rate for LIBOR-based US dollar singlecurrency loans.

Credit: IDA standard terms with 35 years' maturity.

Commitment Fees: Loan: 0.75 percent on undisbursed loan balances,beginning 60 days after signing, less any waiver.

Credit: 0.50 percent on undisbursed credit balances,beginning 60 days after signing, less any waiver.

Financing Plan: See SAR para. 3.53.

Net Present Value: Y 774 million

Project ID Number: CN-PE-3594

CONTENTS

1. BACKGROUND .............................................. 1A. Introduction .............................................. 1B. Sectoral Objectives and Bank Lending .............................................. 1C. Irrigated Agriculture in China .............................................. 2D. Irrigated Agriculture and Poverty in Gansu Province ......................................... 2E. Rationale for Bank Group Involvement .............................................. 3F. Lessons Learned .............................................. 4

2. THE PROJECT AREA ............................................... 6A. Location ............................................... 6B. Climate, Topography and Soils ............................................... 6C. Water Resources ............................................... 7D. Population, Labor, Farm Size and Land Use ............................................... 8E. Rural Incomes and Poverty ............................................... 8F. Present Development and Constraints .............................................. 8G. Institutional Support ............................................... 11H. Infrastructure .............................................. 12

This report is based on the findings of preparation, preappraisal and appraisal missionsduring the period of September 1994 to October 1995. The Bank/IDA staff, foreign andlocal consultants who prepared the report on various missions were: Messrs./Mss.Lang S. Tay (Senior Irrigation Engineer/Task Manager, EA2RS), W.P. Ting (SeniorAgriculturist, EA2RS), W. Ochs (Drainage Adviser, AGRNR), Rob Crooks(Environment Specialist, ASTEN), Zou Youlan (Resettlement Officer, EA2CH), Qun Li(Project Analyst, Consultant, EA2RS), N. Fujimoto (Irrigation. Engineer, Consultant,EA2RS), Robert Weller (Consultant Anthropologist, United States), B. Mitchelhill(Consultant Livestock Specialist, Australia), A. Bartholamai (Consultant AgroprocessingEngineer, United States), Zhang Weizhen (Drainage/Groundwater Consultant, China),Sun Siheng (Consultant Forestry Planning Engineer, China), Cai Wenmei (ConsultantSociologist, China), J. Thomsen (Consultant Forestry Planner, Denmark), A. Salam(Consultant Dam Design Engineer, Canada), Francis Li (Consultant Hydraulic Engineer,Canada), M. Bureprea (Consultant Geologist, Canada), YukLam Ko (ConsultantHydrologist, Canada), C. Saint-Pierre (Consultant Agronomist, France), E. Liang(Consultant Economist, EA2RS), Zhang Chaohua (Consultant Project Analyst, China),and Raz Yihar (Consultant Field Crop Specialist, Israel). Peer reviewers were: W. Price(ASTEN), W. Ochs (AGRNR), B. Trembath (EA2IN), Schaengold (ASTHR), C. Ameur(MNIAG), and C. deHaan (AGRTN). The Task Manager is Lang S. Tay, the DivisionChief is Joseph Goldberg, and the Department Director is Nicholas C. Hope.

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3. THE P JECT ........................................................................................................... 13A. Objectives ........................................ 13B. Project Description ........................................ 13C. Principal Features ........................................ 13D. Voluntary Emigration and Land Settlement ........................................ 26E. Institutional Support and Strengthening ........................................ 29F. Status of Project Designs ........................................ 30G. Implementation Schedule ........................................ 30H. Women in Development ........................................ 31I. Environmental Assessment ........................................ 32J. Land Acquisition and Involuntary Resettlement ........................................ 33K. Cost Estimates ........................................ 34L. Financing ........................................ 35M. Procurement ........................................ 36N. Disbursement ......................................... 380. Accounts and Audits ........................................ 40

4. ORGANIZATION AND MANAGEMENT .............................................. 41A. Project Organization .............................................. 41B. Financial Management .............................................. 43C. Execution and Supervision of Project Works .............................................. 43D. Project Launch Workshop .............................................. 44E. Emigration and Land Settlement Management .............................................. 44F. Operation and Maintenance of Project Works .............................................. 44G. Management of Production Activities .............................................. 45H. Monitoring, Evaluation and Reporting .............................................. 46

5. PRODUCTION, MARKETS AND PRICES .............................................. 48A. Production .............................................. 48B. Markets .............................................. 48C. Prices .............................................. 49

6. BE&iEFITS, JUSTIFICATION AND RISKS .............................................. 50A. Benefits ...................... 50B. Employment and Incomes ...................... 50C. Cost Recovery and Repayment ...................... 52D. Financial and Economic Analyses ........................................ 52E. Risks ........................................ 54

7. AGREEMENTS REACHED AND RECOMMENDATION ................................... 60

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ANNEXES

A. StatisticsTable 1-Climatic DataTable 2-Soil Types and ClassificationTable 3-Project Area StatisticsTable 4-Present Land UseTable 5-Crop Production 1993Table 6-Crop Yields 1989-1993Table 7-Comparison of Demographic and Socioeconomic Situations between

Gansu Province and the Eleven Emigrating CountiesTable 8-Characteristics of Production Systems

B. Cost EstimatesTable 1-Project Cost(a) Expenditure Account Project Cost Summary(b) Project Components by Years-Investment(c) Expenditure Account by Project Components(d) Expenditure Account by YearsTable 2-Procurement of Major Works by ICB and NCBTable 3-Procurement of GoodsTable 4-Retroactive Financing of WorksTable 5-Estimated Disbursement Schedule and ProfileTable 6-Training and Study ToursTable 7-Consultant Services and ResearchTable 8-Composition and Cost Estimate for Agrimachinery and EquipmentTable 9-Cost Estimates of Agricultural Support Services ComponentTable 1 0-Cost Estimates of Livestock DevelopmentTable 11-Project Financing Plan

C. Economic Evaluation and AnalysisD. Summary of Environmental Action PlanE. Summary of Involuntary Resettlement Action PlanF. Summary of Voluntary Emigration and Land Settlement PlanG. Irrigation System Monitoring, Control and DispatchH. Performance Indicators and Impact MonitoringI. Other Technical Data and InformationJ. Selected Documents and Data Available in Project File

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CHARTS

1. Project Implementation and Management Organization2. Organization for Emigration and Land Settlement Management3. Organization for Operation and Maintenance of Irrigation Works4. Organization for Anxi County Agrotechnical Extension Center

FIGURES

1. Implementation Schedule2. Disbursement Schedule

MAPS

IBRD Map No. 27591IBRD Map No. 27592IBRD Map No. 27593

TABLES IN THE TEXT

Table 2.1: Existing Irrigation Facilities .......................................................... 9Table 3.1: Leaching Quotas .......................................................... 18Table 3.2: Design Parameters of Drainage System in Changma Irrigation District ......... 19Table 3.3: Exploitable Groundwater Resources .......................................................... 20Table 3.4: Water Use, Supply and Demand at Full Development (P=50%) .................... 21Table 3.5: Comparison of Incidence of Poverty .......................................................... 27Table 3.6: Project Cost Summary .......................................................... 35Table 3.7: Procurement Arrangements .......................................................... 36Table 3.8: Disbursement Arrangements .......................................................... 39Table 6.1: Financial and Economic Rates of Return and Sensitivity Analysis

(8-Year Scenario) ........... 55Table 6.2: Financial and Economic Rates of Return and Sensitivity Analysis

(1 1-Year Scenario) ........... 56

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1. BACKGROUND

A. INTRODUCTION

1.1 Investigations of the Shule River Basin in Hexi Corridor for irrigated agriculturedevelopment and land settlement were carried out by Gansu in the early 1950s, followedby decades of project planning, ad hoc and increasingly better planned implementation,and review. The Gansu Provincial Study conducted by the Bank Group in 19851concluded that irrigation development in Hexi Corridor would be a logical means ofalleviating poverty and significantly reducing provincial food deficits. Since then,various Bank Group missions, while supervising the ongoing Gansu ProvincialDevelopment Project (Agriculture Component) Ln. 2812/Cr. 1793-CHA of FY87, haddiscussed the project and guided Gansu in project preparation for ultimate Bank Groupfinancing. The proposed project in Shule River Basin has been identified to have highdevelopmental potentials and has long been supported by the Bank Group. However, dueto Gansu's counterpart funding constraint, the proposed project was only finally acceptedby the central government for Bank Group financing in the FY96 lending program as theearlier poverty-oriented project approached completion. The project was prepared inSeptember 1994, preappraised in May 1995, and appraised in September 1995.

B. SECTORAL OBJECTIVES AND BANK LENDING

1.2 China's agriculture feeds a population of about 1.2 billion. Land resources arescarce (about 0.1 hectares-ha-per capita). Water resources, although abundant in thesouth, are scarce in the north and northwest, limiting expansion and development ofagriculture. Agricultural reform, begun in 1978, has helped to reduce the incidence ofrural poverty by about 170 million people, from 270 million to about 100 million peopleby 1985. However, since 1985 there has been only a small decline in the incidence ofabsolute poverty. The earlier gains in rural incomes have come mainly from areasendowed with favorable natural resources, whereas the mountainous regions of southwestand northwest China remain poor due to harsh natural elements and relativeoverpopulation. China's poverty reduction strategy is now focused on raising incomesand living standards of people in these poor regions through investment in agriculture andland development, rural works and enterprises, provision of basic social services, andfacilitation of emigration to better favored areas.

See World Bank Country Study entitled "China-Growth and Development in Gansu Province," WorldBank, Washington DC, 1988.

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1.3 Bank Group lending for agricultural projects with direct poverty alleviationinterventions include: Northern Irrigation (Cr. 1885-CHA), Gansu ProvincialDevelopment Project (Ln. 2812/Cr. 1793-CHA), Loess Plateau Project (Cr. 2616-CHA),Southwest Poverty Reduction Project (Ln. 3906/Cr. 2744-CHA) and Shanxi PovertyAlleviation Project (FY96). Other agricultural projects that include poverty reductionsubprojects in numerous extremely poor counties are: Shandong AgriculturalDevelopment Project (Cr. 2017-CHA), Shaanxi Agricultural Development Project(Cr. 1997-CHA), Henan Agricultural Development Project (Cr. 2242-CHA), Tarim BasinProject, Xinjiang (Cr. 2294-CHA), Guangdong (Cr. 2307-CHA) and Sichuan (Cr. 2411-CHA) Agricultural Development Project. These projects have made a real andsustainable contribution to poverty reduction, with the Northem Irrigation Project doingso in part by assisted emigration of poor upland peasants to newly irrigated areas (para.1.9)

C. IRRIGATED AGRICULTURE IN CHINA

1.4 China achieved rapid expansion of irrigated farmland from the early 1950s to themid-1980s. Through expansion in irrigation, the effective irrigated area increased fromabout 20 million ha in 1952 to 33 million ha in 1965, 45 million ha in 1976 and 48.5million ha in 1984. However, after 1985 the area declined and stagnated at about 45million ha due to a net loss of cultivated land to nonagricultural use (including some landwhich should never have been developed, now reverted to grassland) and reducedinvestment in water resources development by both central and local governments. Theproductivity of irrigated land is about twice that of rainfed land as irrigation allows bothhigher cropping intensities and higher yields. Irrigated agriculture accounts for about twothirds of total grain production and three quarters of commercial crop production.

1.5 Despite past successes, China continues to face problems in the irrigatedagriculture sector. Continued depletion of water resources, coupled with degradation ofwater quality by industrial pollution and chronic uneven regional distribution of waterresources, continues to constrain irrigated agriculture development and expansion. Manyof the large schemes constructed in the 1950s and 1960s in haste are aging fast and needrehabilitation. Operation and maintenance in many areas are still inadequate due to theinsufficient resources allocated. The government's short-term strategy is to selectivelyimprove and rehabilitate some of the more urgent and priority areas that would providequick returns with minimum investment, while the long-term plan calls for interbasintransfer of water to resolve regional water shortages. There is still potential for increasingproduction from existing irrigated farmland through better water management and higherirrigation efficiency. New irrigated agriculture development would be limited andconfined to smaller river basins with adequate water resources.

D. IRRIGATED AGRICULTURE AND POVERTY IN GANSU PROVINCE

1.6 Gansu, located in the northwest arid region, is a resource poor province with apopulation of 22.6 million, 84 percent of which is rural. Agricultural production is

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largely affected by harsh natural elements (topography, climate, land and water) and aweak production infrastructure. The province is deficit in food grain production. Overthe last two decades the province had to import grain to feed its increasing population,especially those in the upland areas of central and southeast Gansu where the harshclimate and marginal land and water resources cannot sustain an increasing population.Of the 3.5 million ha of cultivated land, only about 1.07 million ha are irrigated. It isplanned to increase the total irrigated land to about 1.25 million ha by 2000 and 1.33million ha by 2010.

1.7 The province has 41 officially identified absolute poor counties with about 4.26million people living below the absolute poverty line and depending on government relieffor food, clothing and fuel. Although some progress has been achieved under the povertyreduction programs of the "Two Xi"2 Commission since 1983, much more needs to bedone. The province has formulated a seven-year plan to reduce the incidence of povertyfor about 4 million people. The 1,000 kilometer (km) long Hexi Corridor in thenorthwest region of the province (the route of the ancient Silk Road), with its favorableclimate and better resources, offers a long-term solution to reducing the province's deficitin food grain and alleviating poverty.

E. RATIONALE FOR BANK GROUP INVOLVEMENT

1.8 The project would directly address two of the Bank Group's main operationalpriorities in China-poverty alleviation, and environrnental enhancement and protection.The project is also consistent with the current Country Assistance Strategy (CAS) and theProgress Report of March 26, which supports in-situ income-generation programs inlagging provinces, upgrading of marginal agricultural lands, major water storage, andirrigation and drainage development. This is in line with the strategy jointly developedby the government and the Bank for reducing absolute poverty in the 1990s. 3 Itcomplements the government's Ninth Five-Year Plan and addresses two of the keychallenges facing rural development in China: relative stagnation of income growth inrural area, and large-scale water shortages in the north and west. Bank Groupparticipation in the project will play a key role in developing a prototype large-scalesettlement project integrated with irrigated agriculture in the Hexi Corridor of westernGansu Province where large tracts of land exist for potential future development, forexample, the Corridor's Hei River Basin has potential of similar settlement developmentfor poverty reduction for 80,000 to 100,000 people. The project would also serve as adevelopment model for rational use of limited land and water resources in small self-contained river basins in the water scarce regions of Northwest China. In addition, Bank

2 The two Xis refer to Dingxi Prefecture and Hexi Corridor.

3 Close collaboration was established resulting from the 1992 sector study "China: Strategies forReducing Poverty in the 1990s" and the "International Conference on Poverty Issues in China" held inBeijing, November 1992.

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Group involvement would provide access to the Bank Group's (and internationalconsultants') experience and technologies in development of irrigated agriculture for aridregions, settlement planning and management, and environmental protection andmanagement.

F. LESSONS LEARNED

1.9 The Bank Group has assisted China in financing various agricultural projectsaimed at raising incomes and living standards in the rural areas. These projects have beenor are generally being implemented efficiently with benefits and performance exceedingappraisal estimates. In Northwest China, the Yinan component of the Northern IrrigationProject (Cr. 1885-CHA), in neighboring Ningxia Hui Autonomous Region, and theagricultural component of the Gansu Provincial Development Project(Ln. 2812/Cr. 1793-CHA) have direct poverty reduction programs to settle a total of135,000 people from resource-poor areas to newly developed irrigated land. Settlementof 55,000 people in the Yinan component has been successfully completed and that forthe Yindaruqin component (Gansu) with 80,000 people has just begun due to belatedcompletion of the irrigation facilities, involving construction of major civil works overmountainous terrain (90 km of Feeder Channel comprising 39 tunnels, pipe siphons,aqueducts and lined canals). The relative success of these Bank-financed agriculturalprojects can be attributed to a high degree of commitment by local governments at alllevels, effective project planning, design and management, and active participation bylocal communities and project beneficiaries.

1.10 A recent Bank mission4 to assess the results and impacts of poverty-reduction-through-voluntary-resettlement programns in Ningxia implemented under the Bank-financed Yinnan Component of the Northern Irrigation Project (Cr. 1885-CHA) found theresults to be very positive in reducing absolute poverty and providing greater level ofincomes after resettlement on newly irrigated land. The investment has been cost-effective with quick realization of benefits. The mission also found that the large numberof Hui minority people resettled have not only maintained their cultural and religiousintegrity, but further rebuilt and strengthened them with their increased incomes, whichthey could not afford in their former villages. Key issues identified by the missioninclude: (a) newly irrigated land to be provided to each settler should be allocated toachieve either high incomes or a greater number of beneficiaries; and (b) programs shouldnot exceed the carrying capacity of the existing available resources. Gansu's project staffplanning the settlement component have visited and studied the successful voluntaryresettlement programs completed for 55,000 people under this Bank-financed project inNingxia.

4 The Bank mission comprising Alan Piazza (EA2RS), Zou Youlan (EA2CH) and Lin Zongcheng(Consultant Anthropologist) visited Ningxia November 5-10, 1995.

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1.11 Gansu's own experience in poverty alleviation through land settlement were bothnegative and positive. The failures5 of earlier settlement in Hexi Corridor implemented inthe late 1950s and 1960s were attributed to the involuntary nature of settlement,inadequate planning, lack of supporting services and infrastructure, and settlers not ableto adapt to the new environments. The more successful poverty reduction programs werethose carried out by the Two Xi Commission since 1983 with better planning andresources. Some 337,000 people have been settled since 1983, the majority of them inthe Hexi Corridor. Local community leaders and project planners are still mindful of theinitial settlement failures in Hexi and the inherent risks involved without adequateplanning and provision of essential support services. Experience and lessons learnedunder the Two Xi Commission poverty reduction programs carried out over the lastdecade have been reflected in the planning and design of the voluntary settlement modelfor the proposed project.

1.12 From Bankwide experience, the OED's review (No. 72, September 1994) of fivecompleted transmigration projects in Indonesia provides useful guidelines for theplanning and design of the Hexi Corridor settlement component. Though socioeconomicconditions, project designs and programs are somewhat different, some of the findingsand lessons identified by OED are relevant. These include: (a) security of guaranteedincomes for settlers is more important than levels of income, (b) proper and thoroughfield investigations should be undertaken prior to settlement, (c) greater settlerparticipation in project development and more opportunities for income-generationactivities for women are required, (d) a strong and stable institution is needed with a clearsettlement strategy and plan to ensure successful implementation, (e) there must be agradual buildup of local capacity, supported by adequate resources, to absorb the largetransmigrating society, and (f) more attention should be paid to protection of theenvironment. The above relevant OED findings and lessons have been reviewed withGansu project planners whose voluntary emigration and settlement plan has already takenmost the above findings and lessons into consideration.

5 During the Great Leap Forward period (1958-59), a large number of settlers from densely populatedagricultural areas of Southeast China were settled in the Hexi Corridor as a means of reducingpopulation in southeast China and increasing labor availability in Hexi Corridor. However, many of thesettlers left and returned to their home areas by the early-1960s. A similar failure occurred in the late1960s when a number of youths from Tianjin were sent to the Hexi Corridor; they were only permittedto return to Tianjin in the early 1980s.

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2. THE PROJECT AREA

A. LOCATION

2.1 The proposed project area, located in the Shule River Basin in the farthest westerncorner of the Hexi Corridor in Gansu Province, is administered by Anxi County andYumen City of Jiuquan Prefecture. It is bordered on the west by Hami District ofXinjiang Autonomous Region, on the north by Inner Mongolia and on the south by theQilian Mountains in Qinghai Province. IBRD Map No. 27591 shows the general locationof the project area.

B. CLIMATE, TOPOGRAPHY AND SOILS

2.2 The project area has an inland arid continental climate with short hot summersand long cold winters. Annual total rainfall ranges from 50 to 70 millimeters (mm)against annual total evaporation of 3,000-3,200 mm. The frost-free period ranges from117 to 182 days, averaging about 140 days. This restricts agriculture to only one maincrop per year. However, long sunshine hours (2,960-3,260 hours annually) andabundance of solar energy are very conducive for vegetative growth during the plantingseason. More detailed climatic data are given in Annex A, Table 1.

2.3 The total proposed Shule River watershed area is about 4,130 square kilometers(kmtn) with about 1,330 km2 located above the proposed Changma Dam site. The middlereach (1,200 knm) and the lower reach (1,600 km2) contain three existing partiallydeveloped irrigation districts with ground elevation ranging from El. 1,100 to 1,600 m.The proposed project area is generally flat, consisting of alluvial, deluvial and alluvial fanplains with higher relief sloping from south to north. Ten south-north gullies of 4-10 mdeep intersect the plains. Fringing the project area are the Gobi Desert and permanentand semipermanent sand dunes. Strong wind, sand storms and scorching heat waves arecommon occurrences, especially in Anxi County located in the west of the project area.

2.4 Primary soil materials are of alluvium and silt with secondary materials of aeolianand red clay of the Tertiary Period. The various soils are classified in Annex A Table 2.Soil nutrients are low in nitrogen, deficient in phosphorous and relatively low in organiccontent. Appropriate soil improvement and dressing would be required for optimum cropproduction.

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C. WATER RESOURCES

Surface Water

2.5 There are two major rivers in the project area: Shule and Chejin Rivers. Theaverage long-term runoff of Shule River, measured at Changma Station, is about 1,031million cubic meters (Mm3) and that of Chejin River, measured at Shiyou Gorge Station,is about 51 Mm3 . Yearly and seasonal distributions are not even, with about 53 percentof annual quantity occurring during July-September, about 8.5 and 10 percent duringwinter and spring for the Shule River. The total annual runoff varies from 536 Mm3 fordry years (1956-57) to 1,507 Mm3 for abundant water years (1972-73). The long-term(1952-89) average flow per second is 32.8 cubic meters per second (cms), with amaximum annual average of 47.8 cms and minimum of 17.0 cms. Presently, the mainShule River is not fully regulated and only about 42 percent of its annual runoff isdiverted for agricultural and domestic use. Chejin River has been fully used with its flowin the upper reaches, the Shiyou River, extracted for industrial and urban uses. Only alimited quantity in the lower Chejin River flows into the existing Chejinxia Reservoirused for irrigation.

2.6 Water quality of Shule and Shiyou Rivers has been monitored by four samplingstations on each river. Their results are presented in Annex D Table 5. For the ShuleRiver, despite a relatively high concentration of zinc, the water quality is generallysuitable for irrigation purposes. The water quality deteriorates somewhat after enteringand leaving the Shuangta Reservoir with a higher concentration of mercury andmineralization, but still conforming to the irrigation water quality standard.6 The ShiyouRiver, upper stretch of Chejin River, is presently polluted by 36 points of industrial andurban effluent discharges. Actions are in hand to control and abate this water pollution.Due to natural dilution while flowing downstream, the water quality improves somewhatbefore entering the Chejinxia Reservoir. With the proposed diversion of 61 Mm3 per yearfrom the proposed Changma Trunk Canal to augment the water supply in ChejinxiaReservoir, the water quality would be further improved through dilution.

Groundwater

2.7 Total groundwater resources are estimated at about 704 Mm3 per year, with65 percent from river seepage, 21.5 percent from canal seepage, 11 percent fromirrigation' infiltration, and the remaining from subterrain flow, storm and rainfallinfiltration. Present extraction and use of groundwater is rather limited (40 Mm3) due toavailability of cheaper surface water and the lack of electric energy. Mineralization ofgroundwater varies from 1 to 3 grams/liter and is generally suitable for crop irrigation.

6 China's Standard GB 3833-88 for Surface water for Irrigation-Grade 1I.

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D. POPULATION, LABOR, FARM SIZE AND LAND USE

2.8 The 1993 total population in the project areas under Yumen City, Anxi Countyand local State Farms was estimated at about 124,320, with rural population of 105,890(85 percent). This includes an immigrant population of 13,150 people. The populationdensity at 7.1 persons/km2 is low compared to the provincial average of 49.3 persons/km2. Total rural labor force is only about 53,100 and there is a general shortage of labor.Landholding per family is comparatively large with an average 0.31 ha cultivated landper capita (0.6 ha per capita in state farms). Farming is mechanized to a large extent inview of large farm size and labor shortage. The large tracts of potentially arable land arecapable of absorbing additional immigrant population without affecting the economicholdings of the existing population. The basic statistics of the project area are given inAnnex A Table 3.

2.9 The present land use of the middle and lower reaches of Shule River is low asshown in Annex A Table 4. Out of the total area of 1,932,400 ha, 146,800 ha (7.6percent) is used for agriculture and forestry, 150,000 ha (7.8 percent) under pasture,6,500 ha (0.3 percent) for residential and industrial use. Some 1,645,600 ha (85.3percent) remain unused, of which 228,500 ha (11.8 percent) is barren arable land suitablefor reclamation and agricultural development.

E. RURAL INCOMES AND POVERTY

2.10 Per capita rural income of the project area (average Y 1,400) exceeds theprovincial average (Y 430) and the 11 emigrating counties (Y 220-Y 320) in central andsoutheast Gansu. Higher per capita incomes are mainly due to better utilization ofresources through irrigated agriculture and cultivation of larger landholdings. The200,000 persons proposed for voluntary settlement under the project are now living inabsolute poverty with per capita income less than Y 300 due to poor resources, degradingenvironment and increasing population. Voluntary emigration and settlement in ShuleRiver Basin under the project would alleviate their absolute poverty within three to fouryears and thereafter rapidly enhance their economic well-being to the same level of theexisting farmers in the project area. Annex A Table 7 compares the demographic andsocioeconomic situations of Gansu Province, the project areas, and the 11 emigratingcounties.

F. PRESENT DEVELOPMENT AND CONSTRAINTS

Irrigation and Drainage

2.11 Irrigation development in the Shule River Basin dates back to the early QingDynasty, some 350 years ago. Due to scanty population, large expanse of land andprimitive irrigation facilities, only about 17,300 ha were irrigated prior to the 1950s.Through major reconstructions carried out during 1956, 1966 and 1984, the total areairrigated has now been expanded to about 43,300 ha under three irrigation command

areas-Changma (25,500 ha), Shuangta (14,500 ha) and Huahai (3,600 ha). Theirrigation facilities constructed to-date are tabulated in Table 2.1 below

TABLE 2.1: EXISTING IRRIGATION FACILITIES

Facilities Changma Shuangta Huahai(25,500 ha) (14,500 ha) (3,600 ha)

Diversion Headwork/Intake (no) I - IDiversion Trunk Canal (no/kmn) 2 1 1/47Storage Reservoir (MM3) - 240 (Shuangta) 41 (Chejinxia)Main & Submain Canals (no/km) 92 11 3/90 3/67Branch & Subbranch Canals (no/kIn) 92/475 32t275 11/54Lateral Canals (no/kn) 179/341 180/335 88/132

2.12 The existing Changma Intake diverts about 430 Mm3 annually or about 42 percentof the long-term average annual flow of Shule River. About 340 Mm3 is used forirrigation in the Changma Irrigation Area, 40 Mm3 is sent to augment the ShuangtaReservoir in the Shuangta Irrigation Area and 10 Mm3 for Chejinxia Reservoir in theHuahai Irrigation Area. About 40 Mm3 is used for domestic and industrial water supply.Other supplementary water sources used include 180 Mm3 from springs and 36 Mm3

from groundwater.

2.13 The main constraints confronting the present irrigation system are: (a) due to lackof upstream flow regulation of the Shule River, only about 42 percent of the annualaverage is being effectively used with the remaining running to waste, resulting infrequent water shortages during the irrigation peak demand periods; (b) the main canalsystems are aging fast and in poor condition, resulting in low canal system efficiency of43 percent to 49 percent; (c) lack of adequate on-farm facilities, leading to poor watercontrol and management; (d) lack of drainage facilities for soil salinity control in someareas; (e) the West Main Canal in Changma Irrigation Area is a temporary earth channelwithout proper canal control structures and suffers from serious bank erosion and seepagelosses, and poor water conveyance; (f) the East Main Canal is poorly aligned in its upperreaches and needs to be realigned for better water conveyance; (g) problems of frostdamage to canal concrete-linings need to be resolved; and (h) the overall watermanagement standard is low and needs to be improved. The proposed project wouldaddress the above deficiencies.

Crop Production

2.14 Currently, the project area has 43,300 ha of irrigated land. During the 1993season, 32,900 ha was planted with various crops with a total output value of Y 235million, which represented about 49 percent of the total agricultural output value for 1993(see Annex A Table 5). The production came from 13 townships and 4 state farms

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supporting a total population of 124,320 people (rural population of 105,890). Per capitacultivated land by farmers is 0.62 ha (1.00 ha by state farm worker). Cultivation ismechanized to a high degree: plowing 89-100 percent, sowing 77-100 percent andharvesting 37-75 percent. Due to the high solar radiation energy and where irrigationwater supply is assured, the average unit yields7 achieved have been consistently wellabove the province's average yields for various crops (see Annex A Table 6). Thepresent production systems are well managed and supported by a satisfactory basicagrotechnical extension and support services system at county and township levels (asimilar system also exists in the State Farm hierarchy). The characteristics of productionsystems are summarized in Annex A Table 8.

2.15 Crop production models and experience already exist in the project area, includingthat of land settlement by immigrant settlers. This would undoubtedly facilitatereclamation and development of 54,600 ha of new land for irrigated agriculture andsettlement. The main constraints currently confronting increased crop production are:(a) lack of irrigation facilities and water; (b) saline and salinized soils requiringamelioration; and (c) frequent sand storms and scorching heat waves. The proposedproject would attempt to minimize the impacts of these physical constraints.

Livestock

2.16 The project area is an important livestock production base in the Province. It haslarge tracts of natural grazing grounds and abundant supply of cultivated pastures andcrop residues from the irrigated cropland. Current production is mainly by specializedhouseholds and small household production. The holding stock at the end of 1993 were:large animals 31,800 heads, sheep 127,700 heads, pigs 65,000 nos. and poultry 352,500birds. Per capita production of meat, egg and milk in 1993 were: 40.6 kg, 10.3 kg and1.75 kg. Except for milk (lower by 2.5 kg), the per capita production of meat and eggexceeded the province averages by 17.9 kg and 5.9 kg, respectively. However, due toincreasing demands by tourism and major mining industries and urban centers in the HexiCorridor, the present production can only meet 70 to 75 percent of the demands for meat,eggs and milk. It is projected that production would have to increase by 2.03-, 3.2- and9.4-fold by the end of 1990s. The processing of feed and forage is generally of smallscale and low quality. Efficiency of feeds could be improved through appropriateblending with fine feeds and concentrates. The Animal Husbandry Department maintainsa satisfactory veterinary services and technical extension system at county and townshiplevel to support the production.

7 The average unit yields for wheat and corn reported for Anxi County and Yumen City for 1989-93were higher than those of the state farms. This is due to more intensive cultural practices adopted bysmall family farms, higher inputs and better established on-farm windbreaks that provided oasis effects,which are more conducive for crop growth.

Forestry

2.17 Gansu Province has forest cover of about 8 percent, which is below the nationalaverage of 12.3 percent. Historically, the Shule River Basin was covered with lush forestand pasture, but through years of wars and destruction by man, these endowments havelong been destroyed. Since the 1950s, the State and provincial government havelaunched campaigns of afforestation, closing off desert for reforestation, controlling largetracts of desert and sandy soil areas against grazing for purpose of conserving vegetation.The project area has also benefited from the national "Three North" Shelter BeltPrograms completed under two phases to control desertification in Northeast, North andNorthwest China. Currently, the project area has 9,971 ha of protective forest, 2,645 haof agroforestry and 2,153 ha of border windbreaks, providing a forest cover of4.2 percent. Forestry development and production is generally low cost, labor intensiveand of simple technology specially adapted for the project area.

G. INSTITUTIONAL SUPPORT

2.18 Overall, the present agricultural production systems in the project area havesatisfactory basic institutional support that, however, would need to be upgraded andexpanded to cope with increased demand under the project. Present status of varioussectors are summarized below:

(a) Irrigation and Drainage Research. Research and experimentation topicsinvestigated in the past by various provincial and national units in theproject area included canal seepage, damage to canal linings by frostaction and swelling of clayey soil, irrigation application rates, soilamelioration methods, and feasibility of subsurface pipe drainage. Resultsof some of the more successful experiments have been used and promoted.However, due to lack of resources, these studies have been scaled downconsiderably. Currently, the Shule River Water Conservancy ManagementOffice (SRWCMO) still maintains a small experimental station nearYumen Township, doing experiments on irrigation techniques as tonumber of irrigation applications, timing, quantity, for different crops withthe aim to economize use of irrigation water. The project would supportand strengthen the research and experiment facilities with provision ofequipment and staff training.

(b) Agriculture. Support services for crop production are provided by theexisting agrotechnical extension centers in Anxi County and Yumen City,which have laboratory facilities for soil analysis and other analytical work,agrimachinery service stations and seed companies. The Gansu Academyof Agricultural Sciences maintains a research station at the prefecturecenter of Jiuchuan and this station serves the needs of the project area.Under the leadership and guidance of county, prefecture and province, thetownships and farms have been able to obtain quality seeds, extension of

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new technology, pest control, and production techniques for high-yieldingand high-value crops.

(c) Animal Husbandry. The project area has 177 technical staff; 14 of whichare professional and 53 senior and middle level staff. The veterinary andtechnical extension services system consists of two county centers and 19township stations. Supporting production are two pasture stations, fivequality stock breeding farms, two livestock products trading companiesand two processing enterprises. Further institutional support is provided atJiuchuan Prefecture and provincial levels for research, technical supportand staff training.

(d) Forestry. The Forestry Bureau maintains a total of 157 staff and workersin the project area, of which 45 are technical staff. Services are providedthrough the two county forestry technical extension, disease and pestcontrol, and seedling centers. The Bureau also operates I forestry farm, 2nurseries and 20 township forestry stations. Research is mainlyundertaken by the national "Three North" Shelter Belt Program and theresults disseminated to the project area for application.

H. INFRASTRUCTURE

2.19 The project area is well served by the existing Lanzhou-Xinjiang Railway and theNational Highway No. 312, supplemented by a comprehensive network of roads atprefecture, county, township and village levels. Domestic flights from Lanzhou landregularly at Jiayuguan and Dunhuang, both fringing the project area. With thecompletion of the multitrack Lanzhou-Xinjiang Railway and the provincial fiber-optictelecommunication system, transport and communication capacity for the project areawill be further expanded, thereby facilitating industrial, rural enterprise and agriculturaldevelopment.

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3. THE PROJECT

A. OBJECTIVES

3.1 The main objectives of the project are to: (a) alleviate poverty of some 200,000poor farmers from the resource poor areas of central and southeast Gansu Province byemigrating and settling on newly developed irrigated land in the Hexi Corridor;(b) increase agricultural production in Gansu Province, especially in food grains andcommodity crops; and (c) protect and restore degraded environments.

B. PROJECT DESCRIPTION

3.2 The principal project components are:

(a) Changma Dam (55 m high) on Shule River to provide effective storage ofabout 100 Mm3 of water for irrigation and water supply;

(b) Irrigation and Drainage-improve facilities for 43,300 ha existing anddevelop 54,600 ha new irrigated land in three irrigation districts;

(c) Agriculture-crop production, support services, agrimachinery servicesand livestock production;

(d) Land Settlement for 200,000 immigrant farmers from resource-poor areason newly developed irrigated land in 16 new townships and 160 villages;

(e) Environmental Protection and Management through afforestation,monitoring, soil and water conservation practices; and

(f) Institutional Strengthening and Support through provision of staff training,technical assistance, equipment, vehicles and essential facilities.

C. PRINCIPAL FEATURES

Changma Dam

3.3 The proposed Changma Dam would be 55 m high with a crest length of 365 mand a zoned earthfill embankment with a central clay core. A side channel regulatedspillway, with three gates (10 x 7.7 m), would have discharge capacity of 1,655 cms. An8.0 m diameter concrete-lined 300 m long diversion tunnel on the left abutment to bebuilt during the construction stage would be used later for silt flushing purposes. Thewater intake concrete-lined tunnel (5.5 m in diameter x 500 m long), located on the rightabutment, would divert water for irrigation downstream after passing through a surface

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powerhouse with a total installed capacity of 14.25 MW (3 Francis turbines; 2 x 6.5 MWand 1 x 1.25 MW). Some 8,320 m of buildings and 53 km of access roads will also beconstructed to facilitate operation and maintenance.

23.4 The Changma Dam would create a reservoir covering about 12 km of area with atotal storage capacity of 194 Mm3 , out of which 80 Mm is dead storage. The deadstorage for siltation is projected to last for 37 years with silt flushing carried out duringthe annual high stage flow, commencing from July to early August. A flow simulationstudy carried out serially using 41 years of flow records (1952-93) of Shule River showsthat for 34 out of 41 years the surface water resources alone are insufficient to meet theprojected water demands. Thus, groundwater would be required for supplement. Only17 years show a net water deficit over the conjunctive supply of surface and groundwater.In 14 years, the net deficit is less than 5 percent of the total projected demand, in 2 yearsabout 10 percent, and only in one very dry year (1956) does the deficit reach 30 percentof the demand. The overall water balance situation is satisfactory. However, the risk ofdrought does exist and a drought crisis management contingency plan would have to beincluded in the operation of the irrigation system (see para. 4.12). On completion, theChangma Dam would provide better regulation of flow in the Shule River, therebyincreasing annual irrigation supply from 430 Mm3 to 926 Mmn3 and the flow utilizationrate from 42 to 90 percent.

3.5 Reservoir Resettlement. The Changma Reservoir would require involuntaryrelocation and resettlement of 131 families (566 persons) and acquisition of 172 ha ofcultivated land. A Resettlement Action Plan (RAP) has been prepared in accordance withthe provisions of Bank OD 4.30 and submitted to the Bank/IDA (see paras. 3.48-3.49 andAnnex E for more details). The RAP has been reviewed and accepted by the Bank forimplementation. A summary of the RAP is given in Annex E.

3.6 Dam Safety. An international panel of experts (appointed in accordance withBank OMS 3.80) has reviewed the safety aspects of the dam design in April 1995. Thepanel considered the layout and structural design of the dam to be basically safe andrecommended further refinements to the design, which have now been incorporated in thedesign.' The panel will be retained to review safety aspects of the dam during itsconstruction stage. The panel has also reviewed the safety aspects of the two existingreservoirs, Shuangta and Chejinxia, and found them to be basically safe for operationsubject to recommended remedial works being carried out. Gansu has agreed to completethese recommended remedial works not later than December 31, 1998. At negotiations,assurances were obtained from Gansu Province that it would (a) complete remedialworks to Shuangta and Chejinxia Reservoirs not later than December 31, 1998; and(b) carry out periodic safety inspections of the completed Changma Reservoir, and the

B For details, see Dam Safety Report by International Panel of Experts in project file.

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existing Shuangta and Chejinxia Reservoirs in the project area, according to practicesand procedures9 acceptable to the Bank/lIDA.

Irrigation and Drainage

Irrigation

3.7 Irrigation facilities would be improved on an existing 43,300 ha and expanded to54,600 ha new land to be reclaimed under the following three irrigation areas:

(a) Changma Irrigation Area. The existing Trunk Canal Main IntakeComplex would be shifted 6 km upstream towards the Shule River Gorgeand a new trunk canal constructed to connect with the existing one. Thiswould reduce the seepage losses in the river channel located between thenew and existing intake sites. The existing pair of trunk canals (totalcapacity of 65 cms) will continued to be used, but the first 19.4 km of theolder trunk canal will have its lining of conglomerate stones replaced withconcrete for better efficiency. A new bifurcation gate is required for theEast/North Main Canals. A new 49.5 km long lined-canal along a newalignment complete with proper canal control structures will replace theexisting West Canal earth canal which is in very poor condition.Connecting to this new canal, four existing and two new submain canals,totaling 105.6 km, would be improved and constructed. The East MainCanal will have its capacity increased to 7.6 cms, serving ultimately a totalof 8,020 ha. Part of the canal will be improved by canal realignment andreplacement of canal lining and control structures. The North Main Canalwill have its capacity increased to 9.1 cms to increase irrigated area from5,467 ha to 10,500 ha. The canal will be extended by about 0.95 km andabout 10 km of the existing canal will have its damnaged lining replaced.The South Main Canal, basically in good condition, will have its capacityincreased from 4.6 to 6.2 cms to serve 5,800 ha. A total of 196 branchcanals, totaling 653 km, will be improved and constructed. To takeadvantage of the available hydraulic head, one minihydro power stationeach will be incorporated into the New Trunk Canal (Extension) Intake(12 MW installed capacity) and the New West Main Canal Intake (6 MWinstalled capacity). Some 24,600 m 2 of offices and buildings, and 288 kmof rural roads complete with bridges and culverts will also be constructedto facilitate operation and maintenance of the irrigation area. With theimproved and expanded facilities, Changma Irrigation Area will increasefrom the present 25,500 ha to 56,870 ha.

9 Periodic safety inspections would be carried out in accordance with Regulation No. 77 on"Management of Reservoirs and Large Dams" enacted by China State Council on 3/22/1991.

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(b) Shuangta Irrigation Area. Primary irrigation works completed includethe Shuangta Reservoir, Anxi Trunk Canal, South and North Main Canals,and 32 branch canals totaling 275 km, 35 percent of which are lined. TheShuangta Reservoir, strengthened in 1984 to correct foundation andseepage problems, has now a total capacity of 170 Mm3 . The reservoirwill be augmented with 216 Mm3 annually from the Changma TrunkCanal with completion of the new Changma Reservoir. The 32.8 km AnxiTrunk Canal will have its present capacity increased from 24.5 cms to28 cms to serve about 31,070 ha. The South Main Canal will have its oldintake at the end of the Anxi Trunk Canal replaced and the downstreamstretch realigned for 18.5 km. Included in the improvement and extensionare various canal control structures, bridges and flood spillways. TheNorth Main Canal, totaling 35.2 km, will have 13.5 km improved, 10.4 kmexpanded, and 11.4 km newly constructed, complete with canal lining andancillary structures. To reduce seepage losses in conveyance, a new43.2 km Xihu Submain Canal, starting at the end of the North Main canalwill be constructed to replace the existing Shule River used to conveywater to Xihu cotton-growing area. The existing 29 branch canals inShuangta area will be improved for 108 km out of 145 km and some97 km will be extended or newly constructed, complete with canal liningand control structures. Some 7,500 m2 of offices and buildings, and 40 kmof rural roads complete with bridges and culverts will also be constructedto facilitate operation and maintenance of the irrigation area. Oncompletion, the total irrigation area will be increased from 14,500 ha to30,670 ha.

(c) Huahai Irrigation Area. Irrigation water is diverted from the ChangmaTrunk Canal via the 43.3 km Shule-Hua Main Canal into the Shiyou Riverand regulated in the downstream Chejinxia Reservoir. The present HuahaiIrrigation Area intake is located 11 km downstream of the ChejinxiaReservoir and about 10.4 Mm3 of water is lost annually through seepagealong the river channel above the intake. Under the project, it is proposedto shift the intake further upstream 5.5 km with a designed capacity of7.55 cms. The Huahai Trunk Canal will be expanded for 1.1 km up toChainage 8+650, from there a new 12 km trunk canal of 5.9 cms capacityrunning parallel to the existing trunk canal would be constructed. TheEast Main Canal, 5.25 km long and commanding about 2,000 ha, will haveits capacity expanded to 1.75 cms. Canal lining, control structures andbridges would be improved and added. The West Main Canal will beimproved for 2.0 km and extended 5.7 km with its capacity increased to2.9 cms to serve 3,300 ha. The North Main Canal, 7.7 km long andserving 4,646 ha, will have its capacity increased to 4.1 ems.Improvement and expansion would include downstream canal bank raisingand lining replacement. A total of 20 branch canals would be improved(37 km) and constructed (57.6 km). Some 3,200 m2 of offices and

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buildings, and 40 km of rural roads complete with bridges and culvertswill also be constructed to facilitate operation and maintenance of theirrigation area. The improved and expanded facilities will increase theirrigation area from 3,600 ha to 10,670 ha.

Canal System Efficiency

3.8 The present overall canal system efficiency is only estimated at 50 percent(Changma 54 percent, Shuangta 43 percent, Huahai 54 percent) due to aging of the canalsystem and incomplete lining of the canal systems. The project designed efficiency is62 percent, although somewhat high, but achievable due to the extensive canal liningsbeing proposed for the canal network, improved system operation and maintenance, andestablishment of a computerized system for monitoring, simulation and dispatch ofirrigation water. The projected canal system efficiency would be affected by acombination of factors: soil and topography conditions, size and length of canalnetworks, quality of system construction and canal linings, and standard of operation andmaintenance. The system efficiency would be progressively built up with completion ofthe irrigation works and, therefore, this would need to be progressively monitored for thecanal system in each of the three irrigation areas. Project risk and sensitivity analyses(para. 6.20) were carried out using a range of lower efficiency (60 and 55 percent)evaluated against project benefits (area irrigated and the number of settlers) and the actualefficiency achieved and monitored.

Canal Lining

3.9 Due to porous and sandy soils, adequate and extensive lining of the canal systemwould be required to achieve the desired canal system efficiency. Most of the lining inthe existing irrigation areas would be improved or replaced, and new ones constructed inthe new irrigation areas. Damnage to canal lining caused by frost action and upheaval ofclayey soil supporting concrete lining during cold winter seasons is a serious problem inthe project area. Based on past experience learnt and studies carried out, Gansu hasevolved designs of canal lining to meet different soil and water table conditions. Thesedesigns have been reviewed by the Bank/IDA and found to be technically sound and costeffective. The designs include use of precast concrete panels and slabs, in-situ concrete,large conglomerate stones set in concrete, geomembranes and replacement of clayey soilmaterials with gravely and sandy soils of low moisture retention capacity under theconcrete linings to minimize swelling and upheaval during cold weathers. Details ofthese designs are given in Annex I Appendix 6.

Drainage and Salinity Control

3.10 Reclamation of Salinized and Saline Soils. Of the 54,600 ha of new lands to bereclaimed, there are about 39,000 ha (71 percent of total) salinized and or having salinesoils, with area distribution as follows:

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Irrigation New Land Salinized & PercentageDistrict Reclaimed Saline Soils of total

(ha) (ha) (%)

Changma 31,300 21,000 67.1Shuangta 16,200 14,800 91.4Huahai 7,100 3,100 43.7

Total 54,600 38,900 71.2

3.11 The reclamation of saline lands will be implemented through leaching of salinesoils in combination with drainage and agricultural measures. According to experimentscarried out in the state farms and experience in areas with similar conditions, the leachingquotas required for reclamation of soils with different salinity levels are as shown inTable 3.1 below.

TABLE 3.1: LEACHING QUOTAS

(m3/ha)

Average Salinity in 100 cm layer (%)10 5 3.5 3.0 2.5 2.0 1.5

Changma rrigation District 26,250 18,000 12,000 10,500 9,000 7,500 6,300Shuangta Irrigation District 26,850 18,450 12,300 10,800 9,300 7,800 6,450Huahai Irrigation District 22,515 16,815 12,435 11,280 9,915 8,265 6,225

3.12 On-farm Drainage Systems. For the reclamation of salinized and saline soils,on-farm drainage systems consisting of lateral, sublateral and field drains will beconstructed. Generally, two layout schemes of irrigation and drainage systems are to beadopted: (a) with sublateral drains constructed adjoining to sublateral irrigation canals;and (b) with sublateral drains built in between sublateral irrigation canals. For scheme (a)the spacings of both sublateral irrigation canals and drains are 250-400 m, while forscheme (b) the spacing is 400-600 m. Field drains with depth varying from 1.7-2.2 m andspacing of 70-150 m, depending upon the texture and hydraulic conductivity of soils, aretemporarily constructed during reclamation to accelerate leaching. These field drains willbe leveled at the maintenance stage. For nonsalinized and light soils, based on theexperience of state farms and irrigation districts with similar conditions, only sublateraldrains are required with spacing of 250-400 m. In areas where groundwater of lowsalinity is used conjunctively with surface water, only lateral and sublateral drains arenecessary to supplement the vertical drainage provided by tubewells. The reclamation of

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54,600 ha wastelands will be implemented over a period of 10 years from 1996 to 2005 (seeAnnex H Table 2).

3.13 Main and Branch Drains, and Drainage Outlets. In addition to the main ShuleRiver and Beishi River carrying drainage to the wastelands lying to the west and north ofthe project area, the existing primary and secondary drainage systems will besupplemented with construction of the following additional drains in the three irrigationdistricts to cope with increased drainage from the expanded irrigation area:

Irrigation District Main Drain Branch Drain

Changma Tuhulu M.D. New: 33 no for 140.3 km40.6 km Rehab.: 21 no for 85.8 km

Total: 54 no for 226.1 km

Shuangta Guazhou M.D. New: 11 no for 66.2 km25.5 km

Huahai New: 7 no for 59.8 kmn

3.14 The typical design parameters of drainage systems for Changma Irrigation Districtare shown in Table 3.2 below.

TABLE 3.2: DESIGN PARAMETERS OF DRAINAGE SYSTEM IN CHANGMA IRRIGATION

DISTRICT

Levels of System Sublateral Lateral Branch Tuhulu main

Drainage area (ha) 33-53 53-167 667 1,000 1,667 7,866Design discharge (cms) 0.013-0.021 0.021-0.065 0.261 0.39 0.65 1.382Bottom width (m) 0.4 0.6 0.8 1.0 1.6 2.0Longitudinal slope 1/500 1/500 1/500 1/500 1/500 1/2000Side slope coefficient 2.5 2.5 2.5 2.5 2.5 3.0Depth (m) 2.0-2.2 2.1-2.4 2.4-2.6 2.5-2.7 2.5-2.7 2.95

Groundwater and Tubewell Development

3.15 The exploitable groundwater resources in Changma, Shuangta and HuahaiIrrigation Districts and planned groundwater extraction are as shown in Table 3.3.

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TABLE 3.3: EXPLOITABLE GROUNDWATER RESOURCES

Exploitable Groundwater Planned Groundwater Extraction (Mm3 )Irrigation District Resources (Mm3) Year of p=50% Year of p=75%

Changma 95.19 29.62 59.37Shuangta 49.40 12.18 39.67Huahai 8.50 2.62 5.00

Total 153.09 44.42 104.05

3.16 With the completion of the project, the surface runoff will be regulated by theChangma Reservoir and groundwater recharge will come mainly from seepage losses ofirrigation canals and deep percolation of irrigation water in the field, which are more orless uniformly distributed. Therefore, the extraction of groundwater, the number andlocation of tubewells in different areas will be planned according to the groundwaterrecharge in those areas. The groundwater drafted would be used conjunctively withsurface water. Tubewells would be constructed adjoining to surface irrigation canals toaugment irrigation canal supply. During periods when canal water is not available, theground water is used for irrigation of vegetables, tree crops and other crops, especiallyduring drought when surface canal water supply is limited. Some 730 tubewells wouldbe constructed under the project, mostly in the Changma Irrigation District, tosupplement the surface irrigation water. The locations and spacing of these newtubewells would be subject to detailed investigations.'°

Water Resources-Supply, Demand and Quality

3.17 The total water resources available annually in Shule River Basin has beenestimated at 1,220 Mm 3; 1,082 Mm3 surface water and 138 Mm3 groundwater. Based onthe demands for ultimate development under the project, the total demand would be about1,071 Mm3 ; 969 Mm3 for agricultural use and 102 Mm3 for industrial and domestic use.Table 3.4 below shows the breakdown of use, demand and supply for a normal year(P=50%). The surface supply would only be made possible through regulation of theShule River by the proposed Changma Reservoir.

10 The present groundwater regime will be changed as a result of increased Shule River flow regulationand diversion for irrigation to the expanded areas. The future extraction of groundwater shouldpreferably be based on results of groundwater model simulation.

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TABLE 3.4: WATER USE, SUPPLY AND DEMAND AT FULL DEVELOPMENT (P=50%)

Item Demand (Mm3) Supply (Mm3 )Irrigation: Surface Water Groundwater Total

Changma I.A. 556 491 65 556Shuangta I.A. 308 279 29 308Huahai I.A. 105 105 0 105

Subtotal 969 875 94 969

Industrial use 83 83 0 83Domestic use 11 0 11 11Rural enterprises 08 0 8 8

Total 1,071 958 113 1,071

3.18 The overall water quality of the main Shule River" supplying the main bulk ofwater for irrigation is within China's standard GB 3833-88 Grade II for surface water forirrigation. As part of the lower stretch of the Shule River is being used to convey waterto the Shuangta Reservoir for irrigation of Shuangta Irrigation Area, it would benecessary to monitor the potential increase in salinity in the Shuangta Reservoir waterdue to planned reclamation of some 10,100 ha of salinized soils drained by this stretch ofthe Shule River.

Agriculture

Agricultural Support Services

3.19 With the immigration of new settlers, the population of Yumen Township wouldbe increased by about 30 percent and that of Anxi County doubled. Therefore, theinvestment for agricultural support services would reflect these population changes.Moreover, the design and delivery mechanism of agricultural support services would bemade flexible to meet emerging needs of the migrant settlement development over thecourse of time. Consideration would also be given to promote competitive markets inmost types of services to be provided by enterprises, companies and specializedhouseholds. New migrants settled on State Farm administered land would enjoy existingsupport services under the State Farm system which is self-sufficient in most of the

The water in the smaller Shiyou River has been extensively used by industries and Yumen City and ispolluted, but only an insignificant quantity is used for irrigation.

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services. The proposed agricultural support services under the project are summarized inthe following subcomponents:

3.20 Agrimachinery Services. A total of 16 township/subfarm agrimachinery servicestations would be built progressively over the project implementation period to provideagrimachinery services on fee basis to the new migrant farmers. The size and capacity ofthese stations would take into consideration the small-size farm holdings, existingcapacity of agrimachinery specialized households from adjoining townships, andmigrants using own machinery and draft animals to meet their needs. The composition ofthe proposed machinery and equipment for each station is summarized in Annex BTable 7. It consists mainly of 4 medium-size bulldozers, 1 each scraper and land leveler,3 55-hp tractors, 4 plows, 2 harrows and 3 sowing machines for each station. Tomaximize use of machinery, the bulldozers, scrapers and land levelers would also be usedin land reclamation work, and the tractors for general transportation. Each station willhave a built-up area of 300 m2 and be equipped with workshop repair facilities. Four fueldepots will also be built to serve these stations and the public. These stations will beoperated and managed by the Provincial Agrimachinery Service Bureau.

3.21 Seed Production and Processing. Quality seeds are available in the project areafor all crops, including most of the secondary crops. County seed companies produce andsell most of the seeds to farmers; 100 percent of the hybrid corn seeds and 20-25 percentof wheat with the remaining being produced by farmers. Only sugarbeet and vegetableseeds are imported from outside the county. State farms in the project area produce andprocess their own seeds. To meet increased demands for seeds under the project, it isproposed to expand storage, processing and transportation capacity of the existing YumenTownship Seed Company, and to equip a seed analytical laboratory. Similar expansion isalso proposed for the Anxi County Seed Company in addition to setting up amultiplication system for quality cotton seed, including 227 ha of seed production farmand processing facilities. The county seed companies would be encouraged to contractwith farmers to produce quality seeds rather than expanding development of their ownseed farms. In line with the national policy, county seed companies would also beencouraged to review and increase their subsidized seed prices so as to make theiroperations more viable and efficient, and as a measure to discourage farmers fromoverseeding when seeds are priced too cheaply. Optimal seeding rate for various cropswould also be promoted through farmer extension programs and field adaptive researchand demonstrations. Further support for quality seeds will be provided through a seedprocessing subproject being prepared under the proposed FY96 Seed SectorCommercialization Project. This will be located in the project area's Huanghua StateFarm, with an annual capacity of 12,500 tons, mainly for wheat, hybrid corn and barley.

3.22 Extension. Yumen Township and Anxi County each have one existing extensioncenter with offices for some 15 technicians, soil analysis and plant protectionlaboratories, and classrooms for training activities. The organization setup of the existingAnxi County Agrotechnical Extension Center is shown in Chart 4. These two centerswould be expanded on the basis of number of new migrants coming into the township and

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county. Existing townships have an extension station each staffed with 2 to 4 techniciansper station making the farmer/technician ratio about 1,000 under Anxi County and 500under Yumen Township (compared to 45 under the State farms). Transportation has beenidentified as a major constraint facing county centers and township stations. Therefore,sufficient vehicles would be provided under the project. For each of the proposed newsettlement townships/subfarms, an extension station would be established. Extensionstaff would be trained to man these new stations with appropriate skill-mix andexperience. The extension programs to be undertaken by the county centers and townshipstations would be based on the integrated training programs planned for the new migrants(see Anncex).

3.23 Research. Research activities to support the agricultural production would focuson on-farm applied research for the new settlement areas. This would be undertakenmainly by the Jiuchuan Prefecture Agricultural Research Institute, Gansu ProvincialAcademy of Agricultural Sciences located at Jiuchuan on contract with the ProjectManagement Office. Topics suggested by the Jiuchuan Research Institute for appliedresearch, subject to evolving needs and further detailed investigations, include thefollowing:

(a) selection and breeding of improved varieties,

(b) adaptive research on water-saving irrigation techniques,

(c) adaptive research on soil fertility improvement in newly reclaimed areas,

(d) follow-up of pest, diseases and weeds,

(e) adaptive research on vegetable production,

(f) screening of crops and species tolerant to salt and climatic risks,

(g) adaptive research to increase the efficiency of agricultural inputs (seeds,fertilizer and irrigation water), particularly on wheat, both in the existingand the new irrigated areas,

(h) cotton pest integrated management, and

(i) selection of early, quality wheat varieties.

The Jiuchuan Research Institute would use existing facilities of the existing countyextension centers as no new research facility would be provided under the project, exceptfor funding of some essential equipment to supplement those to be provided by theJiuchuan Research Institute. Results of successful applied research would be extended tofarmers through the county extension system.

3.24 Cost Estimates. The cost estimates for the above four subcomponents aresummarized in ex B Table 9.

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Livestock Development

3.25 The livestock component would initially focus on strengthening existingveterinary and technical-extension services and production of poultry and pigs throughfamily farms and specialized households. As the new project areas are developed andsettled, village (or farm) technical-extension and veterinary service stations would beestablished. At the later stage, commercial livestock production would be undertakenthrough establishment of various demonstration bases in the project area. The mainsubcomponents are summarized as follows:

(a) Establishment and Improvement of Livestock Extension Network:

(i) expansion and equipping of city/county animal husbandry andveterinary service centers for training and extension;

(ii) replication of animal husbandry and veterinary stations for the 16new townships and subfarms.

(b) Included under Overall Project Management:

(i) training of city, county and township staff;

(ii) training of existing farmers and new settlers in livestockproduction techniques.

(c) Production and Supply of Improved Livestock:

(i) layer fertile egg/chick production farm in Yumen City;

(ii) broiler fertile egg/chick production farm in Anxi County;

(iii) egg hatching facilities in 33 townships/subfarms;

(iv) lean boar production farms in Yumen and Anxi;

(v) lean sow production farms in 33 townships/subfarms.

(d) Fodder Production and Feed Processing:

(i) feed and fodder processing in 33 townships;

(ii) pasture seeds for farmers;

(iii) pasture seed production farms;

(iv) grassland fencing of key areas for rehabilitation/protection;

(v) watering points to improve utilization of grasslands;

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(vi) complete protection of temperate deserts (rangeland).

(e) Credit for Production: The following credit facilities would be madeavailable through the Y 15 million revolving fund provided under theVoluntary Settlement Component (para. 3.32):

(i) credit for the procurement of improved livestock (specialistfarmers);

(ii) credit for small farmers to procure livestock.

The cost estimates for each subcomponent and the investment activities for each of theexisting and new townships are summarized in Annex B Table 10.

Afforestation

3.26 The proposed afforestation is primarily to: (a) protect the fragile land from winderosion and enhance eco-environments for crop production and human habitation;(b) provide a source of fuelwood energy for the new settlers; and (c) provide soil andwater conservation measures in the catchment area of the Changma Dam. Uponcompletion, the vegetative cover in the project area would be increased from 4.2 percentto 8.5 percent, thereby enhancing the primitive and fragile arid eco-environments in theproject area. The typical technical designs of afforestation for the project area are givenin Annex I Table 5. The various proposed subcomponents are summarized below:

(a) Eco-environment Protective Forest Belts: To protect and improve thefragile eco-environments of the project area, three fringe forest beltstotaling 236.6 km covering 290 ha in area would be planted. The northernproject boundary running to the west would have a belt of 115.2 kmcovering 138.2 ha. Planting will be four rows at spacings of 1.5 x 2 m andI x 2 m. The northern Anxi County boundary will have a similar four-rowbelt of 86 km covering 103.2 ha. The third belt is located along the EastMain Canal with a length of 35.4 km and 180.7 ha. In addition, forestbelts will be planted along three main roads with a total length of112.9 km covering an aggregate area of 84.2 ha. The vegetative cover ofsome 109,080 ha of sandy areas and sand dunes would be conserved andprotected to prevent livestock grazing, thereby helping prevent ingress ofsand dunes and desertification into the cultivated areas.

(b) Wind Protection and Agroforestry: For wind protection of the projectarea, primary and secondary windbreaks, based on main and branch canalnetworks, would be planted. A total of 98 lines of windbreak forest,covering 704.7 km and 504.7 ha, would be planted. The 56 primarywindbreaks, in a south-north direction in line with the prevailing wind,would cover a total length of 428.6 km and an aggregate area of 394.7 hawith tree planting spacing at 1.5 x 2 m. The secondary windbreaks,

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running generally in east-west direction, total 42 lines of 276.1 km andarea of 110 ha. In addition, it is planned to plant on-farm single-row treeborders based on 5 percent of newly reclaimed area and 2.5 percent ofexisting cultivated area. The total area covered by on-farm tree borderswould amount to 3,820 ha. Agroforestry would consist of planting of fruittrees in residential areas and development of an orchard covering3,333.3 ha.

(c) Fuelwood Forestry: As a supplementary source of energy to coal,fuelwood trees would be planted at spacing of I m x 2 m along GullyNo. I to No. 10 with an aggregate area of 1,000 ha. This fuetwood forestwould provide sustainable harvesting of fuelwood for the new settlers.

(d) Soil and Water Conservation Forest: An aggregate area of 3,330 hawould be planted with shrubs and trees in gullies and along river banksand slopes located upstrearn of the Changma Reservoir area in the vicinityof Tien Shen Chiao and Er Tao Chuan so as to reduce soil erosion causedby surface runoff, thereby reducing the silting of the Changma Reservoir.The dam catchment area has been declared a protected forest area by theGansu Provincial Government. At negotiations, assurances were obtainedfrom Gansu that the Changma Dam catchment area in the QilianMountain Range would be maintained and protected as a protectedforestarea by December 31, 1998 and at all times thereafter.

D. VOLUNTARY EMIGRATION AND LAND SETTLEMENT

3.27 As a means to reduce the incidence of absolute poverty in the province, 200,000people will emigrate voluntarily from 11 of the poorest counties in central and southeastGansu and settle on the newly developed irrigated land under the project. At the sametime, the new migrant settlers would also provide the labor force required for projectconstruction and economic development of the project area. Presently, the per capitagrain production and income in these 11 counties are less than half of the nationalaverage, and well below the average of Gansu's 41 officially identified poor counties (seeTable 3.5 below). The land in these upland regions is steep, badly eroded, nonirrigatedand inaccessible. With increasing population, these counties run large deficits of grain ineach year and many of the absolute poor in the remote valley villages and townships haveto rely on annual governnent relief for food, fuel, clothing, etc.

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TABLE 3.5: COMPARISON OF INCIDENCE OF POVERTY

Average % below AverageGrain per income per absolute Illiteracy grain yield % of land

capita La (kg) capita La (Y) poverty line La rate (%) (kg/ha) eroded

China 500 922 9 25 4,131 19Gansu 390 563 22 39 2,622 3841 poor counties 288 449 46 57 2,027 80I IEmigrating 219 350 49 67 2,106 75countiesHexi Corridor 1,355 1,401 - 16 6,997 -

(Project Area)

aLa Figures are for rural population only.

3.28 A master land settlement plan has been prepared to relocate 200,000 people over aperiod of 10 years. In all, 95 townships with planned quota of emigrants for eachtownship have been selected for the emigrating 11 counties (see details in Annex F Table2). Within them, prospective settlers would be filly informed of the benefits and risks ofmigration and settlement, their obligations and right to refuse. Applications foremigration would be strictly voluntary, systematically processed (screened by therespective village committee, reviewed by township government and approved by countygovernment). Selection of settler households would need to meet the criteria'2 establishedby Gansu Government. Some 10 percent of settler households with moderate income andeducation level would also be selected for settlement. Past experience shows that thesemoderate-income settlers would readjust and succeed very quickly in the new settlementareas and would be useful to serve as models or lead farmers to others.

12 The two-stage selection criteria for settler households are:

First Stage:(a) per capita income of less than Y300 and grain production <150 kg;(b) at least two workers in the household with head of household between 18 and 50 years of age;(c) at least two years of primary education or acceptable literacy level (relaxed for minority applicants);(d) experience in agricultural production;(e) willingness and positive attitude towards emigration; and(f) in good health and mentally sound, not physically handicapped.

Second Stage:(a) per capita income less than Y150 and grain production <50 kg;(b) demonstrate intensive desire to emigrate;(c) 75 percent of the existing cultivated land is on above 25 degrees slope;(d) possess junior middle school education, technical skill and vocational trade training; and(e) demonstrate pioneering spirit and leadership.

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3.29 During the first year of emigration, only working members of family would moveto the new settlement areas to take part in the project construction. Dependents will onlyemigrate during the second or third year after a household head has decided to stay on (hewould have the option of returning to his original residence within the first two years).Each family will contract for at least 30 years 2 mu (0.13 ha) per capita of irrigated landfor cultivation without any form of repayment. In addition, each family can lease, withrent payment13 , an additional 1.5 to 2.0 mu per capita, depending on their economic well-being and availability of family labor. The lease is subject to renewal after 10 years.Each settler family will also be allotted 534 m2 for housing and 667 m2 for plantingvegetables and fruit trees. Based on a family of five persons, the per capita land allocatedwould be 0.157 ha. Large family farrns, with maximum land holding of 10 ha, wouldalso be promoted; but the number would be limited to 150 farms.

3.30 Each settler will cost about Y 1,100: comprising Y 750 for relocation expensesand housing materials, Y 100 for basic water and electricity supplies, Y 100 fuel supplyfor the first two years, and Y 150 for purchase of agricultural tools and production inputsduring the first year of settlement. New migrant settlers will also be exempted frompayment of land and agricultural taxes for the first three years of their settlement. Thenew settlers would be placed in 16 new townships to be established in the three irrigationdistricts. Each township will encompass 10 administrative villages, each village willhave 5 to 10 residential sites with 250-300 families in each residential site, and apopulation of 12,500-13,500 people in each township. During the initial settlement, basiceducation (primary and secondary schools) and health facilities would be provided by theproject to each township and village. Later, as the settlements stabilize and grow, thelocal governments would provide the other necessary amenities and services.

3.31 About 25 percent of the emigrant settlers will be from minority groups, mostlyIslamic Hui and Dongxiang. Although no separate settlement plan has been proposed forthe minority groups, the relevant provisions of Bank OD 4.20 on Indigenous Peopleshave been taken into consideration. To maintain their cultural and religious integrity,these minority groups will be settled together (as will the majority Han), following asmuch as possible their earlier residential groupings. This would help the rapidreconstruction of social networks in the new settlement areas. The current settlementmaster plan provides for one Dongxiang minority township, and 16 Hui minorityadministrative villages to be established. The minority migrants would also enjoypreferential policy incentives, such as relaxation on selection criteria (literacy level),priority for employment, credit facilities, and exemption for payment of primary schoolfees and textbooks.

13 Rent payment for leased land:I st-3rd year- zero.4th-6th year-Y 75 per 0.1 ha or Y 50 per mu.7th-IOth year-Y 150 per 0.1 ha or Y 100 per mu.After 10th year-Subject to renewal and negotiations.

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3.32 Under the project, Gansu will use its own funds to establish a revolving fund ofY 15 million to provide credit to migrant farmers to assist them in purchasing productioninputs, operating small rural enterprises and family business. The credit will be of lowinterest (0.24 percent per month) and for short-term period (2-3 years) with a maximumamount of Y 2,000 per household so that a large number of migrant households can bebenefited. Preference would be given to women and minority migrants. The revolvingfund would be managed by the Agricultural Bank of China and the Rural CreditCooperatives for the Project Office on a fee basis. At negotiations, assurances wereobtained from Gansu that a revolving fund would be established not later thanDecember 31, 1996 to provide credit to migrant farmers under arrangements acceptableto the Bank/IDA.

3.33 The existing County Settlement Offices (CSOs) in each of the 11 emigratingcounties and the host Anxi County and Yumen City will implement, administer andmanage the emigration and settlement programs entrusted to them by the ProjectManagement Bureau (PMB). The CSOs will be responsible to the respective CountyEmigration and Settlement Leading Group (CESLG). A Settlement Advisory andCoordination Committee will be established to advise and coordinate with PMB indrawing up the annual settlement programs and budgets for implementation by CSOs.The Settlement and Social Services Division under the PMB will oversee theimplementation by CSOs. More details of the organizational and management structureare given in para. 4. 10. The Population Research Institute of Northwest China, LanzhouUniversity will monitor the settlement over the project implementation period,establishing a database to track the social and economic status and progress of settlers.

3.34 At negotiations, assurances were obtained from Gansu Province that GansuProvince would (a) implement the emigration and settlement plan based on annualprograms and budget reviewed and agreed by the Bank/IDA, monitor annually theprogress of implementation and furnish the results to the Bank/IDA not later thanMarch 31 of the following year; (b) lease all land distributed to settlers rent free for aminimum of 30 years, and (c) lease up to an additional 2.0 mu per capita to settlers on1 0-year renewal lease with acceptable rates of rent.

E. INSTITUTIONAL SUPPORT AND STRENGTHENING

3.35 Training. Staff training would be focused on improving technical competenceand acquiring technical skills in (a) drainage and water and soil salinity control,(b) operation, maintenance and management of large irrigation areas, (c) water resourcesmonitoring, simulation and dispatch in Shule River Basin, (d) management of large-scalehuman settlements, and (e) optimization of agricultural production in arid regions,covering crops, livestock and forestry. This would be achieved mainly through studytours, attendance at international seminars and workshops, and training courses conductedby subject specialists. The training programs and estimated costs are given in Annex BTable 6. At negotiations, assurance were obtained from Gansu that training would becarried out according to a time-bound action plan acceptable to the Bank/IDA.

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3.36 Technical Assistance. Technical assistance in the form of consultant services,totaling about 100 person-months of foreign and local specialists as detailed in Annex BTable 7, would be provided to assist the Project Management Bureau in: (a) supervisionof civil works construction of the Changma Dam by ICB contract; (b) planning, designand implementation of a basinwide system network for monitoring, simulation, controland dispatch of surface irrigation water integrated with the extraction and use ofgroundwater; (c) planning, design and implementation of a basinwide environmentalmonitoring of land and water resources impacted by the project's activities; and(d) monitoring and evaluation of new migrant settlers as to their socioeconomic well-being.

3.37 Building, Vehicles, Equipment. The project would build an office complex atYumen Township to house the Project Management Bureau and supporting facilities.One county training center each would be built at Anxi and Yumen City for use to trainproject staff at lower levels for all sectors, local leaders and lead farmers in participatoryaspects of the project development. To ensure and facilitate smooth implementation ofthe project, sufficient quantities of office equipment and vehicles would be provided tothe PMB, and the county implementing agencies. Details of equipment and vehicles aregiven in Annex B Table 3.

F. STATUS OF PROJECT DESIGNS

3.38 Detailed designs complete with bill of quantities for the Changma Dam, the newconveyance canal and main intake, and the main canal systems in the three irrigationareas have been completed by Gansu Water Resources Design Institute. Furtherrefinements to the Changma Dam design, incorporating the recommendations of theinternational dam safety review panel and Bank missions, have also been completed forpreparation of international competitive bidding (ICB) bid documents to begin in early1996. Designs for the main, secondary and tertiary canal systems in the three irrigationareas are being undertaken simultaneously by the Yumen Water Conservancy Departmentand Jiuquan Prefecture Water Conservancy Department. They will be completedprogressively in time for the scheduled construction. Design for the development of theresettlement site for relocation of households affected by the Changma Reservoir hasbeen completed.

G. IMPLEMENTATION SCHEDULE

3.39 Due to its physical size, and the need for proper phasing and sequencing ofvarious components, the project will be implemented over a period of 10 years betweenJuly 1996 to June 2006. Major items of construction work would be substantiallycompleted and disbursed within the first seven years. The Changma Dam and theprimary irrigation systems in the three irrigation districts are scheduled to be substantiallycompleted within the first four years. However, land development and settlement, on-farm irrigation works, livestock and afforestation would be phased out over a period of 10years. The project's detailed implementation schedule is shown in Figure 1. At

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negotiations, assurances were obtained from Gansu Province that a detailed annualbudget and programs of works would be prepared and furnished to the BanklIDA byNovember 30 of each year, for project implementation in the following year.

3.40 Reviews of the project implementation in meeting the development objectives andtarget benefits would be conducted at the beginning of 2000 and 2003. The reviewswould include assessment of expenditures, revised project cost estimates, physical workscompleted and outstanding, and targets achieved. The reviews would recommendchanges deemed necessary to complete the project. At negotiations, assurances wereobtained that Gansu Province would prepare and furnish information and data forimplementation reviews to be jointly conducted by Gansu and the Bank/IDA at thebeginning of 2000 and 2003, and Gansu would implement the measures agreed aftereach review.

H. WOMEN IN DEVELOPMENT

3.41 The female population in the host counties (Anxi and Yumen City) and among the200,000 people from the 11 emigrating counties is estimated to be about 47 percent and48.5 percent, of which those within the working age group of 15 to 59 years is 74 percentand 63 percent. In both cases, the female population has a lower literacy level than themale, especially the migrant females who have an illiteracy rate of about 90 percentcompared to 77 percent of the females in the host counties. Recent surveys show thatmost of the females are engaged in simple and unskilled work, unable to compete withmales in the skilled and professional fields. Steeped in traditional social prejudice andlow self-esteem resulting from traditional culture, they are generally not motivated forchange, less adaptive to new environments, and deprived of social and economicdevelopment opportunities unless special interventions are made to improve their status.

3.42 Under the project, special interventions targeted at the migrant female populationhave been designed to change their social and economic status by promoting theirparticipation in social and economic development. These interventions include specifictargets for employment in the public and service sectors, construction industry, townshipand village enterprises, and assistance in the development of small family-run businessesand cottage industries. Women migrants will be given preference in obtaining creditunder the project's revolving fund specially created to assist new migrants (see para.3.32). Details of targeted interventions are given in Annex F Table 6.

3.43 To equip the females for their participatory role in development, emphasis wouldbe laid on raising their literacy level through education and vocational training. Primaryand secondary schools would be built in the new settlement villages and townships toensure that migrant children (including girls) complete the fundamental education. Adultfemales would be encouraged to attend adult education or vocational training classes tolearn practical skills or techniques so as to broaden their opportunities for work oreffective self-employment. About 4,000 females or one third of the migrant females to betrained are expected to attend vocational training classes. The migrant females would

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also be encouraged to join the Women's Federation (WF) to be established in eachvillage. The WFs would organize various socioeconomic activities for their members,such as thrift and saving, home science, knowledge learning, literary and art groups, topromote members' participation in social activities. This would gradually motivate thefemales, give them more self-confidence, self-respect and decision-making in mattersaffecting them.

I. ENVIRONMENTAL ASSESSMENT

3.44 The environmental assessments were jointly completed by the NorthwestInvestigation Design and Research Institute of the Ministry of Electric Power and theGansu Provincial Hydroelectricity Investigation and Design Institute of the Ministry ofWater Resources for Gansu Provincial Government, and reviewed and endorsed by theNational Environmental Protection Agency in July 1993. Based on the Bank's reviewand recommendations during project preparation (September 1994) and preappraisal(May 1995), the assessment reports were further refined and improved into a fullEnvironmental Impact Assessment (EIA) and an Environmental Impact Summary (EIS)submitted to the Bank in July 1995. The Gansu Provincial Government has releasedthese two environmental assessment documents to the public.

3.45 The environmental impact assessment studies have identified both adverse andpositive impacts. Due to its small component of involuntary resettlement of 131 familiesinvolving 566 persons affected by the proposed Changma Reservoir, the project has beenclassified a Category A project. A Resettlement Action Plan has been prepared inaccordance with the provision of Bank OD 4.30 (see paras. 3.48-3.50). The potentialnegative impacts identified are: (a) the reclamation of some 10,100 ha of salinized soilsfor cultivation upstream of the existing Shuangta Reservoir may increase the salinitylevel of water in the reservoir as a result of draining the leachage into the reservoir;(b) the interim changes to the groundwater regime (water levels, recharge, yield, quality)resulting from higher regulation of the Shule River flow and water diversion forirrigation. Other impacts are those associated with construction activities, public healthand fuel-energy demands for new migrant settlers. The positive impacts identifiedinclude protection and enhancement of the existing fragile ecosystem throughafforestation, better and more rational use of land and water resources, and creation of''oasis" effects leading to microclimate improvement.

3.46 Environmental rehabilitation of the source areas in the 11 emigrating countieswould be carried out by local governments after permanent emigration of selectedhouseholds to the new settlement areas. The rehabilitation measures, mainly related tosoil and water conservation, would include freezing and prohibition of cultivation ofsteep slope land given up, afforestation, land terracing, planting of shrubs and grass, andchanging of cropping pattern with less emphasis on grains. Engineering measures, whichare more expensive, would be avoided or kept to a minimum. The proposed programs ofworks and estimated costs for the 11 emigrating counties are summarized in Annex DTable 4. A total of Y 13.5 million (base cost) has been provided under the project based

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on an average estimated cost of Y 50,000 per km2 for similar works currently carried outin Gansu.

3.47 Based on the discussion between the Bank and the project authority, anEnvironmental Action Plan (EAP) has been prepared to mitigate the negative impacts andto provide measures for both short- and long-term environmental protection andmanagement of the Shule River Basin. Details of the EAP are given in Annex D. TheEAP also includes basinwide environmental monitoring of land and water resources, andinstitutional support and strengthening through provision of staff training, monitoring andlaboratory equipment, and vehicles. During Bank supervision of the projectimplementation, particular attention would be paid to the monitoring results of landreclamation and salt leaching of salinized lands located upstream of the ShuangtaReservoirs and it effect on the salinity level of water in the reservoir. At negotiations,assurances were obtainedfrom Gansu Province that project activities will conform withappropriate environmental practices; and Gansu Province would carry out theEnvironmental Action Plan, monitor the annual programs and furnish the resultsannually to the Bank/lIDA not later than March 31 of the following year.

J. LAND AcQuISITION AND INVOLUNTARY RESETTLEMENT

3.48 Land Acquisition. Except for the acquisition of 172 ha of cultivated land to beinundated by the proposed Changma Reservoir, there will be no land acquisition for workconstruction in the new proposed irrigation area as the land is currently wasteland, barrenand uninhabited, belonging to the State. For improvement works in the existing irrigationareas, some land would be required for the improvement and expansion works, but thiswould be minimal as most of the canals and drains already have adequate reserves. Nohouses or families will be affected as people only reside in villages, away from canals anddrains. The 172 ha of land in the Changma Reservoir will be acquired and compensatedunder the RAP (para. 3.50 and Annex.E). Part of the compensation will be used by theYumen City government to develop alternative land for distribution to the relocatees forcultivation in the settlement area located in the Huahai Irrigation Area.

3.49 Involuntary Resettlement. Construction of the proposed Changma Reservoirwill affect 131 families with a total population of 566 persons. The affected peoplewould be relocated and resettled on a 5,580 mu (373 ha) site in the Huahai IrrigationArea. A Resettlement Action Plan (RAP) has been prepared in accordance with theprovisions of Bank's OD 4.30. A summary of the RAP is given in Annex E. The totalcost for compensation, relocation, resettlement and rehabilitation is estimated at Y 17.5million (base cost) or about Y 30,900 per capita.'4 Under the RAP, each relocatee willget 4.5 mu of land for cultivation and participate in the joint development andmanagement of 2,000 mu of commodity crops (fruits, hops, licorice, etc.). Each

14 This compares very favorably to compensation paid under other Bank-financed agricultural projects inChina.

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household will get a housing plot of 635 m2 in the planned resettlement village completewith basic infrastructure and amenities. The stakeholders participated in the selection ofvarious resettlement sites and general consensus was reached by the relocatees and thehost village nearby on the site selected. The relocation and resettlement will be carriedout in two phases; starting in 1998 and completing before the end of 1999 ahead of theflooding of the Changma Reservoir in 2000. The socioeconomic well-being of therelocatees will be monitored by the National Research Center for Resettlement (NRCR),Hehai University, Nanjing for four to five years or until they are satisfactorilyrehabilitated.

3.50 At negotiations, assurances were obtained that Gansu Province would carry outthe relocation and resettlement of people affected by the Changma Reservoir accordingto the Resettlement Action Plan approved by the Bank/lIDA, monitor annually theprogress and performance, and furnish the results to the Bank/IDA not later than March31 of each year.

K. COST ESTIMATES

3.51 The total cost of the project is estimated at $259.2 million, of which the foreignexchange component is $147 million, or 57 percent. Table 3.6 shows the project costsummary and detailed cost estimates of various components are given in Annex B Tables1 (a) to I (d).

3.52 Cost estimates have been derived by applying current unit prices to detailedquantity estimates for the main components. Unit prices are based on recent prices forsimilar works carried out in Gansu Province. Equipment costs are based on recent pricequotations and inquiry. Base costs are estimated with September 1995 prices. For costsexpressed in US dollars, the expected average price increase is estimated at 2.6 percentfor 1996-2005, and when the costs are expressed in Yuan the annual rates are10.5 percent, 8.5 percent, 7.0 percent, 6.5 percent and 6.2 percent for 1996, 1997, 1998,1999 and 2000-05. Physical contingencies of 5 percent have been applied to all itemsexcept for the Changma Dam, for which 10 percent is allowed.

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TABLE 3.6: PROJECT COST SUMMARY

Y million S million% %total % % ota

foreign base foreig basLocal Foreign Total exchange oats Local Foreign Total -dchng co

e

Investment CostsCivilworks 43366 69778 1.13144 62 61 5163 S3.07 134.69 62 61Mach & Equip 1597 6968 8565 St 5 190 830 1020 5I 5Vehicle 266 895 11.61 77 I 032 107 1.35 77 1Land settlement 7654 7566 15219 50 8 911 9.01 1812 50 9Taining & study tours

Oveeans training & tourn - 2 46 2 48 100 . - 0.30 0 30 100 -Local training & tour 4 33 12.23 1637 75 1 049 146 1 95 75 1

Subtotal training& study tours 4.13 14.71 I3.85 75 1 0.49 1.75 2.24 75 1

Specialist sevice - 600 600 300 - - 071 0.71 100 -Research&experiment 2594 2571 5165 50 3 309 306 615 50 3Operation & maintenance 599 773 1372 56 1 071 092 163 56 1Survey &design 29 34 1198 4131 29 2 3 49 143 4 92 29 2Planting & production materials 15 22 6 03 2125 28 1 1 81 0 72 2 53 25 1On-farm orks i61 68 92 28 253 96 36 14 19 25 10 99 3023 36 14Others 179 048 227 21 - 021 006 027 21 -Project maagement 24 27 35 47 59 74 59 3 2.89 4 22 7 11 59 3

Total Investment Costs 797.17 1,052.46 1,S49.63 57 300 94.90 125.29 220.19 57 100

Recurrent Costs - - - - - . - -

Total Baseline Costs 797.17 1,052.46 1,549.63 57 100 94.90 125.29 220.19 57 I00

Physcal conttngencien 4439 6249 10688 58 6 528 744 12.72 58 6Price contingencies 336.32 40480 741 11 55 40 1198 1432 2630 54 12

TOTAL PROJECT COSTS 1,177.8 1,519.75 2,697.62 56 146 112.17 147.05 259.22 57 333

L. FINANCING

3.53 Financing proposed for the project is as follows:

S million %

Central Government La 23.8 9.2Gansu Province 70.1 27.0City/Counties/Entity 7.6 2.9Self-raised funds 7.7 3.0

Subtotal 109.2 42.1

Bank/IDA 150.0 57.9

Total 259.2 100.0

La Allocations from Ministry of Water Resources and State Planning Commission.

3.54 China is eligible for single currency loans under the Bank's expanded program. TheGovernment of China and Gansu Province have selected LIBOR-based US dollar singlecurrency loan terms for the project in order to facilitate management of the foreignexchange risk of their borrowing by more closely matching the currency of their liabilitieswith their net trade flows, about 75 percent of which are US dollar denominated. Theyselected the LIBOR-based product in order to preserve the full maturity of this loan,

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compared to the fixed-rate option that would have resulted in a 15-year loan. The Borrowerjudges that it can manage any interest rate risk. This loan ($60 million), together with otheralready approved FY loans, represents about 2.4 percent of the fiscal year 1996 IBRDexpected lending to China, and is well within the 50 percent volume guidelines approved bythe Bank's Board.

3.55 The loan of $60 million would be for 20 years, including a 5-year grace period atthe standard interest rate for LIBOR-based US dollar single currency loans. The credit ofSDR 61.8 million ($90 million equivalent) would be on standard IDA terms with 35years' maturity. The proceeds of the loan and credit would be made available to GansuProvince for 20 years, including 5 years' grace for the Loan and 7 years' grace for theCredit, with interest at the same rates charged by the Bank/IDA for the Loan and theCredit.

M. PROCUREMENT

3.56 Project procurement will be based on the Bank Group's latest guidelines"Procurement under IBRD Loans and IDA Credits, January 1995" (revised January1996). Gansu has retained the services of the International Tendering Company of theChina National Machinery Import and Export Corporation to carry out procurementactivities for the project. Table 3.7 summarizes the procurement arrangements.

TABLE 3.7: PROCUREMENT ARRANGEMENTS

Procurement MethodProject Elements ICB NCB OtherLa NBF A2 Total

Land acquisition & compensation - - - 1.0 1.0Civil works L 22.6 77.3 93.9 - 193.8

(14.7) (50.2) (44.0) (108.9)Machinery, equipment & vehicles 8.6 6.0 2.0 - 16.6

(8.6) (6.0) (2.0) (16.6)Building and production materials - - 16.2 - 16.2

(11.5) (11.5)Training and technical assistance /d - - 7.6 7.6

(7.6) (7.6)Design, supervision & management - - 6.7 3.0 9.7

(5.4) (5.4)Land settlement services and supplies L; - - - 14.3 14.3

Total 31.2 83.3 126.4 18.3 259.2(23.3) (56.2) (70.5) (0.0) (150.0)

la Other includes force account work, shopping, consultant services, technical assistance and training.Lb NBF denotes non-Bank Group financing.Lr Including on-farm works and buildings, water and electric supplies for settlers.a Including research and experiments.ia Covering relocation services, heating fuel, and agricultural tools.

Note: Figures in parenthesis indicate Bank Group financing.

3.57 Works. Civil works costing $10 million equivalent or more per contract will beawarded under ICB. This will involve only one contract for the construction of Changma

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Dam with an estimated cost of $22.6 million. Qualified domestic bidders competingunder ICB civil works will be eligible for a 7.5 percent preference in bid evaluation, inaccordance with Bank Group guidelines on procurement. Contracts costing less than $10million and more than $200,000 equivalent per contract will be awarded under NCBprocedures acceptable to the Bank/IDA. These civil works (estimated $77.3 million intotal value) comprise numerous packages of small structures, earthworks for canals anddrains, and buildings spread throughout the project area and would likely not be ofinterest to foreign contractors who, however, will be allowed to bid in these NCB bids.The remaining works with an estimated value of $93.9 million, mostly on-farmearthworks for tertiary canals and drains, small structures, access roads, land reclamation,afforestation, basic water and electric supplies, etc., are scattered over a wide area, laborintensive and to be implemented over a 10-year timeframe. As such, they will be bestprocured under contracts awarded on the basis of simplified procedures similar tonational shopping procedure with at least three price quotations (with less than $200,000per contract and aggregate value of $45 million) and, with the prior agreement of theBank/IDA, force account works (up to $48.9 million total) using beneficiary labororganized by local governments to participate in the project construction. Progresspayments for force account works would be based on unit prices and quantities agreedannually with the Bank/IDA. Prequalification of bidders for all civil works costing $5million or more per contract will be required. Prequalification of bidders for ICB biddingof the Changma Dam will be advertised as a specific procurement notice in the UnitedNations Development Business and/or well-known technical magazines, newspapers andtrade publications of wide international circulation.

3.58 Goods. All contracts for goods costing $200,000 equivalent or more will beawarded under ICB. To the extent practicable, contracts for goods shall be grouped inbid packages to cost $200,000 or more each. These contracts include construction andagricultural machinery, vehicles, turbine/generators, transformers, steel bars,communication and monitoring equipment, with an estimated total cost of $8.6 million.Qualified domestic bidders competing under ICB will be eligible for a preference in bidevaluation of 15 percent of the c.i.f. price or the actual custom duties and import tax,whichever is less. The remainder, mostly small items of office machinery, laboratory andworkshop equipment, cement and timber would be procured through NCB proceduresacceptable to the Bank/IDA with an estimated total value of $6.0 million. Buildingmaterials and production inputs for settlers spread out in 160 new villages (aggregatevalue $13.7 million), a small quantity of machinery, equipment, miscellaneousinstruments (aggregate value $2.0 million), and livestock and forestry productionmaterials (aggregate value $2.5 million) will be procured using national shopping (with atleast three price quotations) for procurement under $50,000 per contract and internationalshopping (with at least three quotations from at least two different countries) forprocurement between $50,000 and $100,000 per contract. The aggregate value fornational and international shopping will not exceed $3.0 million and $1.5 million,respectively, for livestock and forestry production materials, machinery, equipment andinstruments.

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3.59 Design, Supervision and Management. Engineering surveys and designs wouldbe carried out by local design institutes at provincial and prefecture levels on directcontract basis. In addition to department supervision, individual engineering consultantswould be employed to assist in the supervision of major works. The project managementelement will cover operating costs for office facilities and equipment, vehicles,monitoring and evaluation systems. The aggregate cost has been estimated at $5 millionfor surveys and designs, consultant supervision $1 million, and project management $3.7million. Only $6.7 million of the total $9.7 million will be Bank-financed.

3.60 Review of Bid Documents and Contracts. Bid documents"5 for all civil worksin excess of $2.0 million and goods in excess of $200,000 will be subject to prior reviewby the Bank/IDA. This will cover the ICB contract for the Changma Dam (para. 3.58)and 17 NCB contracts for works ($54 million in value), and 15 contracts for goods ($14.4million in value). The prior review of bid documents will cover 77 percent of all contractvalue for civil works and more than 90 percent of contract value for goods. The slightlower review coverage than the target 80 percent for works is due to large number of lowvalue packages of earthworks and small structures normally associated with irrigationproject. These small packages would be more efficiently carried out by small localcontractors at county and township levels. Beside supporting and promoting localconstruction industry and participatory work by project stakeholders, the timelycompletion of these small packages of works would bring project benefits on stream withcompletion of each package of works. Standard Bidding Documents with standardSpecial Conditions prepared and issued by the Ministry of Finance, in consultation withthe Bank/IDA, would be used for ICB and NCB. All other contracts will be subject toselective review after bid awards. Annex B Table 2 shows procurement packaging andscheduling of major items of works and goods by ICB and NCB contracts.

3.61 Technical Assistance and Training. The selection and engagement ofconsultants to carry out the technical assistance programs will be based on the Bank's"Guidelines for Use of Consultants by World Bank Borrowers and by the World Bank asExecuting Agency-August 1981." The World Bank's Standard Form of Contract forConsultants' Services will be used and prior review of consultant service contracts by theBank/IDA would be required for contracts with an estimated cost of $100,000 or more forfirms and $50,000 or more for individuals. In addition, terms of reference and sole-source selection of consultants, regardless of the value of the consultancy contract, aresubject to the Bank's prior review. All reimbursable training will be based on programsagreed with the Bank/IDA.

N. DISBURSEMENT

3.62 The proceeds of the Bank Loan/IDA Credit would be disbursed as follows:

I5 Including prequalification, notice of invitation to bid, bid documents, bid evaluation andrecommendations, and contracts.

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TABLE 3.8: DISBURSEMENT ARRANGEMENTS

AmountCategory Disbursable Percentage of

(S million) Disbursement (%/6)

1. Works:(a) Civil works for Changma Dam, primary and secondary canal 64.9 65% of expenditures

and drain systems, tubewells, minihydropower stations andbuildings

(b) Land reclamation and development, on-farm works, infrastruc- 44.0 45% of expendituresture, rural and farn roads, afforestation, basic water andelectric supplies for settlers

2. Goods (machinery, equipment, vehicles, building and production 28.1 1000/o of foreignmaterials for settlers) expenditures; 100% of

local expenditures (ex-factory) and 75% forgoods procured locally

3. Consultants' services and training 7.6 100% of expenditures

4. Operating Costs for Design, Supervision & Management 5.4 80% of expenditures

Total 150.0

3.63 To accelerate and facilitate construction of the main Changma Dam, andinvoluntary resettlement of households affected by the Changma Reservoir, retroactivefinancing of construction works effective from October 1, 1995 will be required for thefollowing: (a) construction of temporary works and facilities covering access roads,electricity and communication to the dam site; (b) improvement and expansion of theirrigation facilities in the Huahai Irrigation Area of the 5,580 mu resettlement site so thatrelocation and resettlement of families affected by the Changma Reservoir can be carriedout early; and (c) construction of two branch canals, and a portion of Anxi North MainCanal, to serve pilot settlement areas. The total disbursable amount would be SDR 3.43million ($5.0 million equivalent) as detailed in the work programs in Annex B Table 4reviewed and approved by the Bank/IDA.

3.64 Statements of Expenditures (SOEs) will be used for disbursements to be madeagainst (a) works under contracts costing less than $2,000,000 equivalent each (whichincludes all force account works); (b) goods under contracts costing less than $200,000equivalent each; (c) training and study tours; (d) consultants' services under contractsawarded to firms costing less than $100,000 equivalent each and consultants' servicescontracts awarded to individuals costing less than $50,000 equivalent each; and(e) operating costs for design, supervision and management. SOEs for force accountworks are to be supported by progress reports showing physical quantities and unit prices,the latter to be reviewed and updated annually and agreed by the Bank/IDA.

3.65 To facilitate disbursement, a Special Account, to be operated by the existingGansu World Bank Projects Implementation Office (GPIO) under the Gansu Bureau of

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Finance, will be established in a bank acceptable to the Bank/IDA. The Special Accountwill have an initial authorized allocation of $6 million equivalent, which will be increasedto $10 million when the cumulative disbursement amount reaches SDR 30 million. GPIOwill prepare and submit applications for disbursement and replenishment of the SpecialAccount monthly or whenever the account is drawn down to half its initial amount,whichever comes first. The project is expected to be completed by June 30, 2006 and toclose on December 31, 2006. The estimated schedule of disbursements is given in Annexa Table 5. The disbursement schedule is slower than the historical profile for waterresources and agricultural projects in China, due to the nature of the project. It is closerto that of land settlement projects in China and other competent borrowing countries.

0. ACCOUNTS AND AUDITS

3.66 The Shule River Basin Project Management Bureau (PMB) will maintain recordsof all project expenditures. These records will be forwarded regularly to GPIO, whichwill review and consolidate the accounts of expenditure and submit them to theBank/IDA for disbursement. GPIO has proposed that the State Audit Administrationthrough its Gansu Provincial Bureau of Audit will audit the project accounts; thisauditing arrangement is acceptable to the Bank/IDA. The audited accounts will alsoinclude the Special Account and the details on withdrawals from the Loan/Credit accountmade on the basis of SOEs, and the auditor's opinion as to whether such withdrawalswere made against expenditures eligible for disbursement by the Bank/IDA. Atnegotiations, assurances were obtained from Gansu Province that it will maintainconsolidated project accounts, which will be audited by an independent auditor, andsubmit such audited accounts to the Bank/lIDA within six months of the close of eachfinancial year.

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4. ORGANIZATION AND MANAGEMENT

A. PROJECT ORGANIZATION

4.1 The Shule River Basin Project Management Bureau (PMB), established at YumenTownship, will have overall responsibility for project implementation and managementunder the guidance of the existing Gansu World Bank Projects ImplementationCommission (GWBPIC), and Gansu Bureau of Water Resources (GBWR) which hasbeen designated as the owner and principal agency to oversee the project implementationand provide technical guidance. A Vice Governor in charge of agriculture has beendesignated to oversee the Hexi Corridor Project. The existing Gansu World BankProjects Implementation Office (GPIO) in the Gansu Bureau of Finance, serving as anexecutive arm of GWBPIC, will assume overall financial responsibility in projectfunding, including applying for reimbursement of project expenditures from theBank/IDA. The general organization of the project is shown in Chart 1.

4.2 PMB, with status of a provincial bureau, will have eight departments: generaladministration; finance; engineering and infrastructure; settlement and social services;agroeconomic development; monitoring and evaluation; procurement and supplies, and arepresentative office in Lanzhou. The total staff establishment is estimated at 100persons. Three advisory or consultative bodies would also be established to advise PMBon project implementation specifics. These bodies are:

(a) Panel of Experts. The panel would consist of senior experiencedtechnical experts, reputed institutions of higher learning, and researchcenters, within Gansu Province or in the country, of various disciplines toadvise PMB on specific technical issues or problems as the needs arise.PMB would maintain a list of panel experts and institutions updatedperiodically.

(b) Local Government Consultative Committee (LGCC). Comprisinglocal government representatives from Jiuquan Prefecture, Yumen Cityand Township, and Anxi County, LGCC will meet regularly with PMB forconsultation on project proposals for their respective constituents, exercisethe participatory role and provide the contribution required by and of theconstituent governments in project implementation. The LGCC will alsoliaise closely with county/city project leading groups and projectmanagement offices on the land settlement programs.

(c) Settlement Advisory and Coordination Committee (SACC). The landsettlement of 54,600 ha newly irrigated land with 200,000 persons wouldinvolve 11 emigrating counties from central and southeast Gansu and the

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hosts-Yumen City and Township, Anxi County and Jiuquan Prefecture.To ensure a participatory role of the stakeholders in the successfulemigration and settlement, SACC, comprising representatives fromprovincial bureaus of Civil Affairs, Ethnic Affairs, Poverty Alleviationand State Farms, Lanzhou University, local governmnent representativesfrom Jiuquan, Ganan, Dingxi, Linxia and Longnan prefectures, the 11emigrating counties and the host Anxi County and Yumen Citygovernments in Hexi, will advise PMB and its Settlement and SocialServices Department on the detailed planning, design and programimplementation of the land settlement component. For impartiality, theSACC would be chaired by a person nominated by Gansu ProvincialGovernment, and assisted by two vice chairmen, one representing theemigrating county governments and the other the host governments inHexi. Each chairman of the 11 County Emigration and SettlementLeading Groups (CESLG) will be a member of the SACC.

(d) County Emigration and Settlement Leading Group (CESLG). Each ofthe 11 emigrating counties would establish a CESLG chaired by thecounty or deputy county chief with heads of the township emigration/settlement groups as members. The CESLGs would: (i) plan and overseeimplementation of the emigration/settlement programs carried out by thecounty Settlement Offices; (ii) approve settler households processed andrecommended by the Village Settlement Groups and townshipgovernments; (iii) coordinate, through SACC, with PMB the annualbudgets and programs for emigration and settlement, and the follow-up onthe welfare of those emigrated and settled; and (iv) plan and overseerehabilitation and restoration of the environmentally degraded areas afterthe people have emigrated.

(e) Project Implementation Leading Groups (PILGs). At city, county andstate farm level, PILGs would be established to organize and overseeimplementation of project works and activities contracted with PMB. ThePILGs would liaise closely with LGCC and SACC on their needs informulating the annual plan and work programs to be prepared by PMB.The PILGs would be assisted by respective project management offices tobe established.

4.3 The PMB, Panel of Experts, LGCC, SACC, CESLGs and PILGs were establishedprior to project negotiations. During negotiations, assurances were obtained fromGansu Province that these entities would be maintained with terms of reference, staffingand other resources acceptable to the Bank/IDA.

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B. FINANCIAL MANAGEMENT

4.4 Flow of Bank/IDA Funds. Assurances were obtained at negotiations that theBorrower would make the proceeds of the Bank Loan and IDA Credit available to GansuProvince for 20 years including 5 years' grace for the Loan and 7 years for the Creditwith interest at the same rates charged by the BanklIDA for the Loan and the Credit.Gansu Provincial Government has designated Gansu Provincial Bureau of WaterResources (GBWR) as the "owner" of the project to be responsible for the cost recovery,repayment of Bank loan and credit, and the foreign exchange risk. Part of the Bank/IDAfunds will be paid directly to contractors for civil works and suppliers of goods underICB contracts on request by GPIO. A small portion of funds will be used to cover thecosts of training and technical assistance. The remaining funds will be disbursed againstlocal expenditures for civil works, on-farm works, land reclamation and settlement,livestock, afforestation and goods procured locally through NCB, force account worksand shopping.

4.5 Sources and Flow of Domestic Funds. Domestic funds, which will financeabout 42 percent of the project costs, will be contributed by various sources assunmmarized in Annex B Table 11. Project beneficiaries will also contribute both self-raised funds and labor for earthwork construction. Understandings were obtained fromthe Borrower and Gansu Province that these sources of domestic funds are firm andcommitted.

4.6 Terms and Conditions of Bank Loan/IDA Credit. A Project Agreement will besigned between the Bank/IDA and Gansu Province incorporating the above agreements.

C. EXECUTION AND SUPERVISION OF PROJECT WORKS

4.7 Execution. Planning, designs and execution of major civil works contracts onChangma Dam, New Trunk Canal and the main canal extension and improvements in thethree irrigation areas will be undertaken by Gansu Bureau of Water Resources (GBWR)through a full-time unit responsible to PMB. Other civil works including on-farmfacilities will be executed by Yumen Township Water Conservancy Department(YTWCD) coordinated by this unit. Similarly, crop production, livestock andafforestation will be executed by the provincial/prefecture/county technical bureaus anddepartments concerned and coordinated by project units under PMB. The land settlementwill be executed by the respective existing county settlement offices in the I I emigratingcounties, Anxi County and Yumen City, and coordinated by the Settlement and SocialServices Division (SSSD) under PMB.

4.8 Supervision. Day-to-day supervision of project works will be accomplished byimplementing departments. For Changma Dam, GBWR will engage consultantsacceptable to the Bank/IDA to assist GBWR in the supervision of civil worksconstruction under ICB contract. To supplement the Bank/IDA supervision, PMB will,from time to time, engage local experts from the Panel of Experts to supervise theprogress of various project components. PMB will furnish the findings and

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recommendations of these experts to the Bank/IDA. The respective provincial technicalbureaus/departments will undertake supervision of works based on annual work programsplanned and agreed by PMB. SSSD, in collaboration with CESLGs, will supervise theannual emigration and settlement programs to be executed by the county settlementoffices.

D. PROJECT LAUNCH WORKSHOP

4.9 To facilitate project implementation, the Bank/IDA in collaboration with theMinistry of Finance will conduct a project launch workshop in Lanzhou in May 1996 forthe staff of GPIO, PMB and project county/city implementing agencies. The objectivesof the workshop will be to clarify the role and responsibilities of PMB and its variousdepartments, and entities of local governments in project implementation. Other topics tobe included will be: (a) procurement (based on the new guidelines of January 1995) anddisbursement; (b) project accounts and annual auditing; (c) monitoring and evaluation;and (d) recordkeeping and reporting. Experienced staff from other Bank-financedprojects would be invited to the workshop to share their experience.

E. EMIGRATION AND LAND SETTLEMENT MANAGEMENT

4.10 Effective and efficient management will be needed to ensure successfulemigration and settlement of the planned 200,000 people. PMB, in consultation withSACC, CESLG and LGCC, will plan detailed annual emigration and settlement programsbased on the approved Land Settlement Master Plan for approval by GWBPIC. Theapproved programs will then be suballocated to the respective emigrating counties forexecution by the county settlement offices. PMB, through its SSSD and the Monitoringand Evaluation Division, will supervise and monitor the implementation progress. Forimplementation coordination between the 11 emigrating counties and the host county/cityof Anxi and Yumen, PMB will resolve any issues jointly through meetings held at regularintervals with SACC, CESLG and LGCC. To strengthen SSSD under PMB, someexperienced staff from the Two Xi Commission will be seconded to SSSD to form itscore staff. The overall organizational and management structure for emigration and landsettlement is shown in Chart 2.

F. OPERATION AND MAINTENANCE OF PROJECT WORKS

4.11 A new Shule River Basin Water Resources Management Bureau (SRWRMB) willbe established at Yumen Township not later than December 31, 1998 to be responsiblefor the overall basinwide water resource planning, development, operation andmanagement in the Shule River Basin. SRWRMB will be established by GansuProvincial Government and given appropriate regulatory power under the Water Laws.This is to ensure efficient water control and dispatch of the main and secondary irrigationsystems transcending county administrative boundaries. The existing three operation andmaintenance (O&M) offices, the Anxi County Water Conservancy Office operating andmaintaining the Shuangta Irrigation Area, the Yumen City Office for the HuahaiIrrigation Area, and the Shule River Irrigation Management Office operating the trunk

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canals and the Changma Irrigation Area, will be consolidated and placed underSRWRMB. The proposed new organizational structure for operation and maintenance isshown in Chart 3. SRWRMB will prepare a plan for the overall O&M of the completedirrigation works covering the three irrigation areas and submit the plan to the Bank/IDAfor review not later than December 31, 1999, and carry out O&M of the irrigation worksbased on the operation and maintenance plan reviewed and agreed by the Bank/IDA.

4.12 To provide an effective means for efficient irrigation water control, dispatch andmanagement, a monitoring system will be constructed with a network of telemetricJcommunication stations covering the whole irrigation area to collect and transmit data tothe center in SRWRMB for computerized simulation (or optimization) of control anddistribution of irrigation water. This monitoring system would play a major role inassisting management in deriving decision rules for operation of the irrigation system andfor drought crisis management. Details of the system are summarized in Annex G.

4.13 To sustain the required operation and maintenance of irrigation works, annualwater fees will be collected from the users in the project area. Current irrigation waterrates range from Y 0.015 to Y 0.03 per m3. Based on the projected production cost perunit of water, these rates would be revised after 1999, taking into consideration theinflationary increase in cost, and to be imposed upon completion of irrigation facilities ineach main canal command area. The revenue collected is expected to cover at least thefull annual operation and maintenance costs, but not the depreciation costs.

4.14 At negotiations, assurances were obtainedfrom Gansu Province that SRWPMBwill (a) be established not later than December 31, 1998 with terms of reference, staffingand other resources acceptable to the Bank/IDA; (b) prepare and submit to the Bank/IDAa plan for operation and maintenance of the whole irrigation area for review not laterthan December 31, 1999 and carry out the required annual operation and maintenancefor the completed irrigation works, taking into account the Bank's/IDA's comments;(c) collect irrigation water rates upon completion of irrigation facilities in each maincanal command area at levels adequate to meet at least the full annual operation andmaintenance costs of completed irrigation works and the cost of replacing theirstructures; and (d) furnish to the Bank./IDA not later than December 31, 1999, theproposed schedule of such water rates to be established and collected.

G. MANAGEMENT OF PRODUCTION ACTIVITIES

4.15 Technical supervision of livestock, forestry and agroforestry production would beprovided by supervising units or groups to be established within the bureaus concerned atcounty and township levels under the guidance of prefecture and provincial departrnents.PMB would oversee and monitor the progress and performance of the agreed annualprograms.

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H. MONITORING, EVALUATION AND REPORTING

4.16 The monitoring of project performance and impact has been discussed with GansuProvince. A Monitoring and Evaluation Division (MED) will be established under PMBto coordinate the monitoring and evaluation of the project's progress, performance andimpacts of various subcomponents to be carried out by assigned technical departments.There will be three subprograms for monitoring and evaluation (see below) by assignedtechnical departments. In addition, MED will undertake the overall monitoring ofphysical and financial progress of project implementation and prepare consolidatedreports for submission to project management and the Bank. Project staff in MED wouldbe trained on the collection of data, their analysis and evaluation, and reporting.

(a) Involuntary Resettlement for Changma Reservoir: The NationalResearch Center for Resettlement (NRCR) of Hehai University inNanjing, in collaboration with Gansu Design Institute, will monitor andevaluate annually the socioeconomic well-being of 131 families (566persons) relocated by the construction of the Changma Reservoir andresettled in the Huahai Irrigation Area. The monitoring and evaluationwould be initially for four to five years or until the relocatees haveachieved at least current livelihood levels. MED will coordinate withNRCR for the timely monitoring and dissemination of findings, which willbe forwarded directly to the Bank, and recommendations for any follow-up action required by the project management.

(b) Voluntary Emigration and Land Settlement: Over a 10-year period ofsettlement implementation, the Population Research Institute of NorthwestChina, Lanzhou University will undertake the monitoring and evaluationof the new migrants settled in the project area. An aggregate of 10 percentof the migrant households will be surveyed each year. Results will beforwarded directly to MED and the Bank. More details of the monitoringparameters and targets are given in Annex F. The monitoring andevaluation would not only establish a comprehensive database of themigrant settlers and provide valuable information on socioeconomicimpacts, but also identify any specific deficiencies in the settlementprograms affecting the settlers. This would enable the projectmanagement to take timely remedial actions or to design improvements tothe programs for the coming years.

(c) Environmental Monitoring of Land & Water Resources: A long-termbasinwide eco-environmental monitoring will be carried out by existingcounty, city and prefecture environmental protection agencies in the HexiCorridor, supported by local specialist consultants, to evaluate the long-term impacts on land and water resources, and the ecosystem, resultingfrom implementation of the project. Details of the monitoring are given inAnnex D on the Environmental Action Plan. The project would

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strengthen and support the institutional capacity and capability of variouslocal environmental units to carry out the monitoring and analytical work.

(d) Physical and Financial Progress of Project Implementation: MED willcollate progress reports from the respective technical bureaus and unitsimplementing the project components to compile into the overall physicaland financial progress report for the project. Physical reports will includequantities of work completed, as well as machinery, equipment andmaterials procured and used. Financial reports will detail all projectexpenditures, amount and value of contributed labor, and supportingdocuments for disbursement from Loan/Credit proceeds. MED willcompile the progress report semiannually for review by PMB andsubsequent submission to the Bank through GPIO by July 31 and January31 of each year, for the previous half-year periods.

4.17 The monitoring of performance indicators and impacts for the above fourmonitoring programs are given in Annex H. At negotiations, assurances were obtainedfrom Gansu Province that it would: (a) carry out periodic monitoring of projectperformance and impacts based on indicators discussed, and furnish the results to theBank/IDA at agreed intervals; and (b) prepare andfurnish to the Bank/IDA semiannualreports of the project's physical and financial progress by July 31 and January 31 ofeach year, for the previous half-year periods.

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5. PRODUCTION, MARKETS AND PRICES

A. PRODUCTION

5.1 Crop production is expected to increase significantly by the time the projectreaches its full development year (beginning Year 18) due to improved and expandedirrigation and drainage facilities, increase in irrigated area and improved agriculturalsupport services. The incremental cropped areas and production of various crops aregiven in Annex C Table 3(a) to 3(d).

5.2 The total grain production is projected to increase from 111,040 tons (withoutproject) to 315,480 tons (with project) with an increment of 204,440 tons or 184 percentof the without-project scenario. Major increases in commodity crop production projectedinclude: 6,875 tons cotton, 8,220 tons oil crops, 46,800 tons sugarbeet, 2,635 tons blackmelon seed, 42,100 tons melons, 34,230 tons various vegetables, and 1,010 tons hops.The total incremental production value is estimated at Y 584 million; Y 313 million forgrain crops and Y 271 million for commodity crops. The increased production of variouscrops would also provide substantial increase in crop residues and forage (Y 72 million invalue), which would be used as coarse feed for livestock production.

5.3 The main incremental annual livestock products projected at full development(beginning Year 22) are: 40 tons alfalfa seed, 126,650 tons alfalfa hay, 820,680 broiler/layer chicken, 1,010 tons commercial egg, 676,000 egg for hatching layer chicks, 2.1 tonswool, and seed stock of 32,600 chicks, 124 calves, 686 sheep, 3,010 breeding pigs and20,100 piglets. The total output value is estimated at about Y 59.3 million.

5.4 The forestry and agroforestry component would produce annually about 14,440tons of fuelwood during Year 1-10, 16,220 tons (commencing about year 15) and 24,780tons at full development (Year 26), 2 million saplings for nursery, 71,230 poplar poles,25,000 m3 of timber (commencing about Year 20) and about 62,670 tons of fruits(commencing about Year 10), with a total value of Y 99.6 million against current outputvalue of about Y 3.0 million.

B. MARKETS

5.5 As Gansu Province is deficit in grain production, the increased grain productionwill be absorbed by local markets within the province to offset about three fifths of theprojected foodgrain deficit. Currently, China produces only about 4.0 million tons ofcotton to meet her demand of about 5.0 million tons, and Gansu produces 18,000 tonsagainst demand of 23,000 tons. The increased production of 6,875 tons cotton under theproject would be completely procured by the State. The increased production of 46,800tons of sugarbeet would be processed by the surplus processing capacity within theprovince to meet national and provincial shortages of sugar, currently estimated at about

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700,000 tons. Hops (particularly in pelletized form) is in big demand by overseas andlocal beer breweries. The increased production of hops will be readily absorbed by thelocal and national markets. The increased production of livestock and forestry productswould be absorbed mainly by local markets in the project area and within the province.

5.6 The existing marketing channels operated by the national commerce departments,supply and marketing cooperatives, supplemented by cooperatives, household groups andindividual traders, offer very competitive markets for agricultural produce. Farmerswould be able to obtain market prices, and this would provide incentives for increasedproduction. The future market in the project area is expected to expand with theimprovement of the transportation network, especially the National Highway No. 312 andthe Lanzhou-Xinjiang Dual-track Railway passing through the project area.

C. PRICES

5.7 At present the prices of agricultural products in the project area, except for cottonand tobacco, are free-market prices or coexist with a free-market price. Stateprocurement prices consist of a ceiling and floor guaranteed price. In general, all directgovernment subsidies have been eliminated.

5.8 In Hexi Corridor output prices have risen steadily for the past several years. From1985 to 1993, the crop purchasing price index rose 73, 74, 82 and 117 percent for grain,oil, cotton, and vegetables, respectively. From 1993 to 1994 the official guaranteed pricerose about 25 percent for grain (Y0.8/kg to Y 1/kg), and 21.1 percent for cotton(Y 6.6/kg to Y 8/kg). The unit prices of vegetables, fruits, and meats also increased.Recent increases brought the official grain price close to the local open-market price, andalso close to world prices adjusted to the farm level. Local market prices in 1995 havebeen increased about 23 percent for wheat (Y 1.3/kg to Y 1.6/kg), 50 percent for cotton(Y 8/kg to Y 12/kg), 30 percent for melon seed, and 30 percent for beets from 1994.Prices are expected to continue rising due to the higher incomes and demand in theproject area and surrounding industrial and urban growth centers.

5.9 Presently, farrners procure inputs at market prices. These prices are about 15-25percent higher than the formerly subsidized prices. From 1993 to 1994 the price roseabout 29 percent for urea, 14 percent for phosphate fertilizer, and 30 percent foragricultural chemicals. In 1995 the price for nitrogen fertilizer increased by about 29percent from 1994 in the project area.

5.10 Prices Used in Analysis. Input and output prices used in the crop budgets forfinancial analysis of the project components are either 1995 average free-market prices orofficial prices, and are based on data provided by the project authorities. These prices aresummarized in Annex C Table 1. For economic analysis, World Bank commodity priceprojections have been used to calculate the farm-gate value of wheat, maize, soybean,cotton, chicken, pork, and urea, with appropriate adjustments for domestic andinternational transport and handling costs. The economic value of most other farm inputsand outputs was considered either equivalent to the financial price or adjusted by thestandard conversion factor. Detailed calculations are shown in Annex C Table 2.

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6. BENEFITS, JUSTIFICATION AND RISKS

A. BENEFITS

6.1 The most important of all benefits is the alleviation of absolute poverty of200,000 poor farmers from subsistence farming to self-sufficiency in food and basicneeds, and then ultimately to become moderate- to high-income farmers. The migranthouseholds would also enjoy better standards of living and higher quality of life in thenew settlements.'6

6.2 The increased production of foodgrain, commodity crops and livestock products(Annex&.. Table 3a-3e) will ease current shortages in the Province, especially offoodgrain, import of which will be reduced by three-fifths. With emigration andsettlement on the newly irrigated land, the 200,000 poor farmers would be self-sufficientin food and basic needs, and no longer dependent on government relief. With the out-migration there would be reduction of population pressure on marginal land in sourceareas and this would facilitate more rational use of natural resources and higherproductivity per capita. The other significant intangible benefit is the protection andenhancement of the fragile eco-environmental system of the projec, area through theplanned afforestation and rational use of land and water resources.

6.3 The project would generate a total of about 112.3 GWh/year hydroelectric power,which would be fed into the local grid to alleviate the current power shortages. TheChangma Reservoir would increase the industrial water supply to 83 Mm3 /year. Theproject would also stimulate and promote economic growth in the two project countiesthrough creation of 16 new townships and 160 villages to accommodate the 200,000migrant population. The projected agricultural production, including that of livestock andforestry, would turn the project area into a major grain and commodity crops productionbase in the province, providing the essential raw materials for township and villageenterprises, and generating employment opportunities in the service sector as well.

B. EMPLOYMENT AND INCOMES

6.4 Employment. During project implementation, some 29.6 million worker-dayswould be required for the construction of Changma Dam and the irrigation systems; 17.5million for land settlement; 1.7 million for agricultural development; and 3.0 million forother activities. The required labor would be provided mainly by the new migrant settlers

16 While all costs of migration and settlement have been included in rate of return calculations of theproject, no benefits of improved housing and social services for settlers have been quantified.

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and the local population, and the rest from other neighboring counties and within theprovince. Some skilled workers will be provided by construction contractors fromoutside the province. After the project is completed, some 14 million worker-days ofregular employment would be created; 12 million in crop production and agriculturalsupport services; 0.7 million in livestock production; 1.0 million in forestry andagroforestry; 0.3 million in operation and maintenance of irrigation and power systems.Numerous undetermined jobs would also be created by rural, township and villageenterprises in the new 16 townships and 160 villages to be created by land settlement.

6.5 Incomes. Per capita incomes of the majority of the households from the 11emigrating counties are currently below the poverty line (Y 400 per capita income),varying from Y 188 to Y 365 (see Annex F Table 2) with an overall average of Y 290 forthe 11 counties, below the absolute poverty level of Y 300. The farm model analysisshows substantial increase in migrants' income with the comprehensive improvement inirrigation and drainage, crop, livestock and forestry production, and agricultural supportand agrimachinery service. Several items have been considered to calculate and assessthe impacts on typical household income, such as various incremental taxes (agriculturaltax, special product tax and fee, etc.); the project loan repayment (including farmer laborcontribution requirement allocated to each household); and an incremental water chargethat will cover the full operation and maintenance costs for the new and rehabilitatedirrigation and drainage system. Charges for additional (1.5 to 2 mu per capita) leasedcultivated land will be waived for the first three years. It will be charged at Y 50/mu inthe fourth through sixth years and Y 100/mu following the seventh year afterimmigration. The standard charge for these items is presented in the typical householdfarm model (see Annex C Table 4).

6.6 Many farm households were surveyed in the project area to represent typicalbeneficiary families. The representative farm households were selected in three irrigationareas based on specialized livestock production, and crop production technologies withdifferent cropping area. Three counties were selected among the 11 emigrating countiesto derive detailed income and expenditure data in the model: Jishishan, representing aminority area, cold climate, high altitude, and a relatively high income; Lixian, alsorepresenting a cold climate and high altitude but with mid-level income for this povertyarea; and Yongjin, representing an arid, centrally located, relatively poor area. The netincomes of migrant households who adopted improved or new technologies under theproject would increase substantially. The farm models indicate that the project wouldincrease farm household income from Y 729-1,382 currently to Y 4,884-4,897 in year 10in Changma, Y 1,600 to Y 6,500 in Shuangta, and Y 12,000 to Y 15,900 in Huahai."7 Inaddition, migrant household income with specialized livestock production will increasefrom Y 1,357 to Y 8,144 with cattle production, and Y 12,592 with sheep production

17 The higher incomes referred to relocatees from Changma village to Huahai new irrigation area affectedby the construction of the Changma Reservoir. Their present incomes are comparatively high due toincomes derived from rearing of large herds of livestock.

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6.7 The summary table of migrant household net incomes in each subproject area ispresented in Annex C Table 5. It shows the annual average real growth rate ofhousehold income at 3 to 25 percent through year 10, and 3.3 to 14 percent through year20 for various forms of specialized production.

C. COST RECOVERY AND REPAYMENT

6.8 Cost recovery for the project will take several forms. Farners will pay the fullcost of some agricultural inputs and services, i.e., seeds, tree saplings, livestock,"8

agricultural machinery services. The investment cost in irrigation will be recoveredthrough labor contributions for construction, operation and maintenance, and throughincreases in irrigation water charges (para. 4.13) to meet at least the full annual O&Mcosts.

6.9 The Gansu Government proposes to recover some capital costs from the migrantsettlers through rent for lease of an additional 1.5 to 2 mu per capita of newly developedirrigated land (para. 3.27). The rent amount is estimated at Y 1.5 billion for 370,000 muover a 20-year period. The net increase in agricultural taxes'9 (comprising normalagricultural tax plus 8 percent tax of local product value) at full development is projectedto be about Y 23.65 million/year. Part of this additional revenue (60 percent) will beused for project repayment. The estimated Y 60/year/person saving by provincialgovernment on reduction of poverty interventions and providing grain and other socialrelief to 200,000 people as a result of emigration and settlement would amount to aboutY 120 million over a 10-year period. This amount would also be used for loan/creditrepayment.

D. FINANCIAL AND ECONOMIC ANALYSES

Financial Analysis

6.10 Financial analyses for the principal components were based on detailed cropbudgets prepared for the annual and perennial crops, reflecting representative scenarios ineach component and subproject. Selected crop budgets for wheat, corn and cotton aregiven in Annex C Table 6a to 6e. Given the price and cost structures in each subprojectarea, as well as the objective of the project, rates of return for all components areacceptable. The FIRRs on individual components ranged from 12.1 (Changma Irrigation

18 The veterinary service charges proposed are:(a) Epidemic Prevention: Sheep/goat Y 1.50/head, pig Y 1.0/head, chicken Y 0.10/bird;(b) Diagnosis/Treatment: Large animal Y 1.50/head, Small animal Y 1.0/head;(c) Castration: Horse Y 20/head; Cattle Y 15/head; Sow/Boar Y 1.5-Y 1.0/head; Sheep/Goat Y 1.0/head;(d) Insemination: Cattle Y 30/head; Pig Y 15/head; Sheep/Goat Y 1.50/head.

19 After considering exemption of payment by new migrant settlers for the initial three years under thepreferential policy for new migrants settling under the project.

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Area) to 26.2 percent (Parent Layer Chicks Farm). The overall irrigation/drainagecomponent FIRR is 15.6; ranging from 12.1 in Changma to 17.2 in Shuangta and to 12.3percent in Huahai.

6.11 The FIRR on forestry components ranged from 12.5 to 21 percent, depending onthe kind of trees. The fuelwood forest is 13.3 percent, nursery 16.6 percent, and orchard21 percent, while the lowest rate, 12.5 percent, occurs for planting of protection forestry.The latter does not always pay in the short run, although it is a critical element in thecomprehensive protection and conservation of the ecosystem.

6.12 The FIRR for the grassland and livestock subproject is 19.6 percent, 18.7 percentis for pasture improvement, 17.9 percent for forage seed production base, 24.4 percent forthe livestock production base, 12.5 to 16.2 percent for lean pork and sow breeding farms,and 26.2 to 14.3 percent for poultry (layer/broiler) breeding farms. The detailed tablesshowing financial rates of return are attached in Annex C Table 7a and 7b.

Assumptions for Economic Analysis

6.13 Economic analysis was done on the major components (irrigation and drainage,forestry, grassland and livestock) and for the project as a whole. World Bank priceprojections or export prices actually realized in China were used to estimate farm-gateprices in 1995 constant terms for traded inputs and outputs. The standard conversionfactor of I was applied to all nontraded items. Conversion factors for investment costitems are listed in Annex C Table 8. All economic values were converted to localcurrency at the prevailing official exchange rate of Y 8.4 to $1.0, and a discount rate of12 percent was used to approximate the opportunity cost of capital in China. All projectcosts, including project investment and production costs, working capital and physicalcontingencies, have been considered in estimating the economic costs of the project, butprice contingencies, interest, and taxes were omitted.

Economic and Sensitivity Analysis

6.14 Based on the above assumptions and comparing costs and benefits over a periodof 30 years, the economic internal rates of return (EIRRs) for selected components rangebetween 18.2 percent (for irrigation and drainage component) to 29.1 percent (forlivestock development component), depending on the assumed cropping and activitypattern, the size of the irrigation and planted area, and the investment cost. Theestimation of economic costs and benefits of the project accounted for projectinvestment, migrants' subsidies, farm production cost, and all incremental migranthousehold income from crop, forestry, and livestock production. The overall projectEIRR is 18.8 percent with a net present value of about Y 774.1 million (Annex CTable 9). The results of the economic analysis are summarized in Table 6.1. If theassumed crop yields take 10 years (instead of 7 years) to reach stable stage, the overallEIRR will be reduced to 17.1 percent with a net present value of Y 587.4 million (seeTable 6.2).

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6.15 Sensitivity analysis of the ERRs for each of the project components was carriedout with switching values to identify levels at which the project would becomeeconomically nonviable, and how far the total costs including the operation input cost andinvestment cost could rise or benefits (the yield or output price) could fall. Table 6.1shows that the overall project is not rendered unprofitable by significant changes in costor benefits. Benefits will need to be 26 percent lower than estimated or incrementalcosts 34 percent higher before the EIRR will fall to 12 percent. The detailedsensitivity analyses can be found in the project files.

E. RIsKS

6.16 The project risks have been identified and analyzed. Measures have also beenincorporated in the project to minimize their effect. The major risks associated with theproject are:

(a) potential increased salinity in the Shuangta Reservoir water due toleaching and drainage from accelerating upstream reclamation of salinizedland;

(b) natural disasters of drought, scorching heat waves and sand storms;

(c) delay in achieving the stable crop yields assumed at the eighth year forreclaimed land;

(d) reduced benefits from lower canal system efficiency; and

(e) delay of project implementation due to slow and poor performance of landsettlement, and lack of inadequate institutional and financial support.

These risks were evaluated with sensitivity analyses on a variety of data and assumptionsrequired for the estimation of EIRR. The results shows that, even with consideration ofthe risks mentioned above, the estimated EIRRs are higher than the assumed minimumrate (12 percent). Further, measures have been taken to reduce these risks. Table 10(AnnexC) summarizes the sensitivity analysis for the risks that were quantified.

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TABLE 6.1: FINANCIAL AND ECONOMIC RATES OF RETURN AND SENSITIVITY

ANALYSIS (8-YEAR SCENARIO)

Switch SwitchComponent Name FIRR NPV EIRR NPV Valuelb Value /L

(%/6) (Y million) (°/0) (Y million) (°/O) (°/)

Irrigation and DrainageChangma Irrigation Area 12.1 6.6 15.8 227.5 17.9 21.8Shuangta Irrigation Area 17.2 163.4 23.4 319.7 35.3 54.5Huahai Irrigation Area 12.3 3.5 18.0 72.5 22.0 28.3

Subtotal 15.6 173.4 18.2 619.7 26.0 34.0

Forestry DevelopmentProtection Forestry 12.5 0.5 14.7 3.0 25.0 33.4Fuel Wood Forestry 13.3 0.1 17.0 0.5 11.0 12.4Agroforestry La 21.0 77.7 22.8 91.4 49.3 97.1Nursery 16.6 0.7 20.5 1.1 19.5 24.2

Subtotal 19.5 79.0 21.4 96.0 45.5 U3.6

Livestock DevelopmentPasture Improvement 18.7 23.7 29.5 42.8 11.4 12.9Forage Seed Production Base 17.9 0.6 21.2 0.8 31.7 46.4Parent Layer Egg Chicks Farm 26.2 2.2 31.5 2.2 37.8 60.7Parent Layer Meat Chicks Fasnn 14.3 0.2 15.0 0.3 14.9 17.6Breeding Pig (lean pork) Farm 12.5 0.0 12.5 0.0 9.3 10.3Breeding Pig (sow) Farm 16.2 1.2 22.4 1.2 17.7 21.5Livestock Production Base 24.4 11.7 37.0 10.8 7.0 8.0

Subtotal 19.6 39.5 29.1 58.0 16.0 19.0

Total Project 16.5 291.9 18.8 774.1 26.0 34.0

La Household fruit trees and orchards.& Percentage change of reduced benefits to reduce EIRR to 12 percent.Lr Percentage change of increased total cost to reduce EIRR to 12 percent.

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TABLE 6.2: FINANCIAL AND ECONOMIC RATES OF RETURN AND SENSITIVITYANALYSIS (11-YEAR SCENARIO)

Switch SwitchComponent Name FIRR NPV EIRR NPV Value /b Value L

(%) (Y million) (%) (Y million) (%) (%)

Irrigation and DrainageChangma Irrigation Area 10.9 -67.9 14.4 143.6 12.0 13.7Shuangta Irrigation Area 15.4 105.6 21.1 255.0 30.0 43.0Huahai Irrigation Area 9.8 -29.6 14.8 34.3 11.4 12.9

Subtotal 13.8 8.1 16.3 433.0 20.0 25.0

Forestry DevelopmentProtection Forestry 12.5 0.5 14.7 3.0 25.0 33.4Fuel Wood Forestry 13.3 0.1 17.0 0.5 11.0 12.4AgroforestryLa 21.0 77.7 22.8 91.4 49.3 97.1Nursery 16.6 0.7 20.5 1.1 19.5 24.2

Subtotal 19.5 79.0 21.4 96.0 45.5 83.6

Livestock DevelopmentPasture Improvement 18.7 23.7 29.5 42.8 11.4 12.9Forage Seed Production Base 17.9 0.6 21.2 0.8 31.7 46.4Parent Layer Egg Chicks Farm 26.2 2.2 31.5 2.2 37.8 60.7Parent Layer Meat Chicks Farm 14.3 0.2 15.0 0.3 14.9 17.6Breeding Pig (lean pork) Farrn 12.5 0.0 12.5 0.0 9.3 10.3Breeding Pig (sow) Farrn 16.2 1.2 22.4 1.2 17.7 21.5Livestock Production Base 24.4 11.7 37.0 10.8 7.0 8.0

Subtotal 19.6 39.5 29.1 58.0 16.0 19.0

Total Project 14.9 126.6 17.1 587.4 20.0 26.0

la Household fruit trees and orchards.lb Percentage change of reduced benefits to reduce EIRR to 12 percent.Lc Percentage change of increased total cost to reduce EIRR to 12 percent.

6.17 Increased Salinity in Shuangta Reservoir. There is a potential increase insalinity in the Shuangta Reservoir water due to planned upstream reclamation of salinizedsoils drained by the stretch of the Shule River from Qiduntang to Bulunji of ChangmaIrrigation District. The water quality, as defined by mineral content, deterioratessomewhat after leaving the Shuangta Reservoir. A forecast of water quality, based on alinear mixing basic model with a water balance regulation calculation, shows that themineralization level of Shuangta Reservoir can meet acceptable standards for farmirrigation water (less than 2 grams/liter) only if the period of land reclamation is morethan 10 years (8-, 10- and 12-year periods were considered). If the period of landreclamation is less than 10 years, the water quality will have some impact on crop yield,mainly affecting wheat, barley, beans, and vegetables during July-August irrigation.Local experimental data shows that crop yields will be reduced by about 5 percent on

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average. The risk from high mineralization (over 2 grams minerals/liter) has beenestimated to reduce crop yields by 5 percent (for crops mentioned above) in ShuangtaArea for a 10-year reclamation period in Changma Irrigation Area. The analysis showsthat the EIRR for the Shuangta component would fall from 23.4 in the base model to 18.1should this actually occur. However, the PMO has proposed the following measures toensure Shuangta Reservoir will conform to the irrigation water quality standard:

(a) adopt a phased 10-year plan (1996-2005) for land reclamation and saltleaching;

(b) timing of land reclamation and salt leaching with high stage flow of ShuleRiver;

(c) closely monitor the mineral content of leaching water flowing into and outof the reservoir, and adjust land reclamation accordingly.

6.18 Natural Disasters. According to the water balance calculation over the 41 yearsof available hydrologic data (1952-93), and local meteorological statistics from theagricultural department of Yumen and Anxi, there is a drought (P=75%) every four tofive years, and localized scorching heat waves or damaging sand storms about once infive to six years. During the drought years, the area (about 60,000 ha) may face waterdeficit (annual average about 73.6 million mi3 ) between April and June. This wouldreduce mainly yields of wheat and barley by 5 to 10 percent through reduced irrigationwater supplied. Impact on other crops will be minimum. The scorching heat waveswould also mainly reduce crop yield of wheat and barley by about 5 to 10 percent inaverage, although the effect on barley is somewhat less. Reduced yields of 8 and 7percent for wheat and barley once every four years for drought, and every five years forheat waves have been adopted in the risk analyses over the 30-year life span for theproject. This reduces the EIRR of the irrigation and drainage component from 18.2percent of the base model to 17.2 percent, and net present value from Y 619.7 million toY 525 million. The measures adopted to minimize the risks would include:

(a) establishing primary protecting forestry belts at the fringes of irrigationdistricts and on-farm shelter belts and windbreaks;

(b) promoting and extending water-saving irrigation technology;

(c) conjunctive use of available groundwater with surface water, and

(d) using computerized optimization modeling techniques provided for theirrigation system for drought crisis management.

6.19 Stable Yields Delayed. There is also a risk that crop yields assumed in the basemodel would not be stabilized within eight years of land reclamation and cultivation.Delay might arise due to lack of experience of new migrant farmers with irrigatedagriculture, slow improvement of land reclaimed and soil amelioration, compounded by

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the harsh natural elements. The EIRR is recalculated for this risk by assuming aconservative crop yield, which increases gradually in the first 3 years, and reaches thestable path after 11 years based on the yield decrease of 5 to 20 percent for different cropsin the stable year. This reduces the EIRR of the irrigation and drainage component from18.2 percent to 16.3 percent.

6.20 Reduced Benefits from Lower Canal System Efficiency. With the irrigationimprovement and new construction the overall canal system efficiency would increasefrom 50 percent to 62 percent, which is the designed efficiency used in determining theirrigation supply and demand under the project. Given the importance of land settlementin this project, the efficiency is a key factor in determining the amount of new land thatcan be developed for irrigation and, therefore, the number of settlers. Since canal systemefficiency is influenced by the size of the irrigation scheme, topography and soilconditions, extent of canal lining, quality of construction, and standard of operation andmaintenance, the risk of not achieving the designed 62 percent efficiency exist. Risk andsensitivity analyses have been conducted for a range of lower efficiency values (55percent and 60 percent) evaluated against the projected benefits and the actual efficiencyachieved and monitored. The EIRR was recalculated by assuming a set of lowerirrigation efficiency value (55 percent and 60 percent), which would reduce irrigationwater supply by 121.8 and 31.9 Mm3, respectively. An optimal cropping pattern (basedon 55 percent efficiency), which jointly optimized irrigation and settlement benefits (tominimize the benefits lost in agricultural production while ensuring self-sufficiency forthe 200,000 settlers), would retain the irrigation area for all single-cropped areas (grain,fruit and cash crops), and reduce the irrigation area for pasture (from 11,060 ha to4,000 ha) and some multiple cropping areas. This would reduce the EIRR of thelivestock component from 29 percent of the base model to 13.6 percent, and net presentvalue from about Y 58 million to Y 5 million. For the whole project, the results are lesssensitive to the reduced canal system efficiency. At 55 percent canal efficiency, theEIRR would fall from 18.8 percent to 18.3 percent, and the net present value from Y 774million to Y 721 million. Impact of 60 percent canal efficiency would be even less.However, the risk of reduced efficiency would be minimized through the extensiveconstruction of canal linings throughout the canal network, improved system operationand maintenance, and establishment of a computerized system for monitoring, simulatingand dispatching of irrigation water. In addition, the canal efficiency would also beprogressively monitored and evaluated with completion of the irrigation facilities. Theresults would be reviewed during the interim project implementation review to be carriedout in 2000 and 2003, and changes would be made to project design, if deemed necessary.

6.21 Resources and Institutional Capacity. The other substantial risks that coulddelay implementation of land settlement are:

(a) lack of timely and adequate counterpart funds to finance project activities;

(b) inadequate institutional capacity for project implementation; or

(c) settlers give up and return to their original place.

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Financial requirements for voluntary emigration and land settlement of 200,000 personswould be very large and concentrated in a few later years due to rapid implementation.Any shortages of counterpart funds would substantially slow implementation and delaybenefits. The associated risks arising from delay in project implementation have beenreflected in the economic analysis. A two-year delay in the implementation will reduceirrigation and drainage benefits by 5.2 percent, forestry development benefits by 4.4percent, and livestock components by 16 percent, with an overall benefit reduction of 5.8percent. To ensure provision of timely and adequate counterpart funds, Gansu Provincehas confirmed that counterpart funds have been committed and agreed to submit annualbudgets and work programs to the Bank/IDA for review (see paras. 3.39 and 4.5). Tofurther assist Gansu Province in facilitating implementation of the land settlementcomponent, part of the local expenditures incurred under land settlement would bedisbursed against the loan/credit.

6.22 As for institutional capacity for project implementation, Gansu has many years ofsuccessful experience in carrying out voluntary settlement in Hexi Corridor under the"Two Xi" poverty reduction programs. Currently, voluntary settlement of 80,000 peopleis in progress under the Yindaruqin Irrigation Scheme being completed under the GansuProvincial Development Project. Experienced staff from the Two Xi Commission andYindaruqin will train and guide other new project staff. The risk with implementingcapacity would be further reduced through systematic planning of settlement programs tobe carried out in stages and well integrated with the progress of land reclamation andinfrastructure construction. An effective institution would also be established to oversee,manage and monitor the settlement programs. The possibility of large numbers of settlersreturning to their origins would be minimized by selecting settlers with positive attitudes,motivated for emigration to improve their economic well-being, and trained to adapt tothe new environments. Overall institutional support and strengthening would be includedin the project to ensure that the operation, maintenance and management of completedworks and production activities would be sustained. Satisfactory agricultural productionmodels and systems are already in place in the existing irrigated areas. The agriculturalyields and production projections are based on existing models and systems, and aretherefore realistic and sustainable, and would provide both safety and adequate incomesfor new settlers.

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7. AGREEMENTS REACHED AND RECOMMENDATION

7.1 At negotiations, the following assurances were obtained from Gansu Province to:

(a) (i) complete remedial works to the existing Shuangta and ChejinxiaReservoirs not later than December 31, 1998; and (ii) carry out periodicsafety inspections of the completed Changma Reservoir, and the existingShuangta and Chejinxia Reservoirs in the project area, according topractices and procedures acceptable to the Bank/IDA (para. 3.6);

(b) maintain and protect the Changma Dam catchment area in the QilianMountain Range as a protected forest area by December 31, 1998 and atall times thereafter [para. 3.26(d)];

(c) establish a revolving fund not later than December 31, 1996 to providecredit to migrant farmers under arrangements acceptable to the Bank/IDA(para. 3.32);

(d) (i) implement the emigration and settlement plan based on annualprograms and budgets reviewed and agreed by the Bank/IDA, monitor theannual progress and performance, and furnish the results to the Bank/IDAby March 31 of the following year; (ii) lease all land distributed to settlersrent free for a minimum of 30 years; and (iii) lease up to an additional 2.0mu per capita to settlers with rent payment at rates acceptable to theBank/IDA (para. 3.34);

(e) carry out training according to a time-bound action plan acceptable to theBank/IDA (para. 3.35);

(f) prepare and furnish detailed annual budgets and work programs to theBank/IDA by November 30 of each year, for project implementation in thefollowing year (para. 3.39);

(g) prepare and furnish project information and data for implementationreviews to be conducted jointly by Gansu and the Bank/IDA at thebeginning of 2000 and 2003, and Gansu to implement measures agreedafter each review (para. 3.40);

(h) ensure that project activities will conform with appropriate environmentalpractices; carry out the Environmental Action Plan agreed with theBank/IDA; monitor the annual programs and performance; and furnish theresults to the Bank/IDA not later than March 31 of the following year(para. 3.47);

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(i) carry out the Resettlement Action Plan approved by the Bank/IDA,monitor the annual progress and socioeconomic well-being of therelocatees, and furnish the results to the Bank/IDA not later than March 31of the following year (para. 3.50);

(j) furnish the consolidated project accounts for annual auditing by anindependent auditor acceptable to the Bank/IDA and the auditor's report tothe Bank/IDA within six months of the close of each financial year(para. 3.66);

(k) the PMB, Panel of Experts, LGCC, SACC, CESLGs and PILGs would bemaintained with terms of reference, staffing and other resources acceptableto the Bank/IDA (para. 4.3);

(1) that SRWRMB will: (i) be established not later than December 31, 1998with terms of reference, staffing and other resources acceptable to theBank/IDA; (ii) prepare and submit to the Bank/IDA for review a plan foroperation and maintenance of the whole irrigation area not later thanDecember 31, 1999 and carry out the required operation and maintenancefor the completed irrigation works, taking into account the commentsgiven by the Bank/IDA; (iii) collect irrigation water rates upon completionof irrigation facilities in each main canal command area at levels adequateto meet at least the full annual operation and maintenance and replacementcosts of the completed irrigation works; and (iv) furnish to the Bank/IDAnot later than December 31, 1999, the proposed schedule of such waterrates to be established and collected (para. 4.14); and

(m) (i) carry out periodic monitoring of project performance and impacts basedon indicators discussed, and furnish the results to the Bank/IDA at agreedintervals; and (ii) prepare and furnish to the Bank/IDA semiannual reportsof the project's physical and financial progress by July 31 and January 31of each year, for the previous half-yearly periods (para. 4.17).

7.2 At negotiations, understandings were obtained from the Borrower and GansuProvince that counterpart funds are firm and committed (para. 4.5).

7.3 Assurances were obtained from the Borrower that the proceeds of the Bank Loanand IDA Credit would be made available to Gansu Province on terms and conditionsacceptable to the Bank/IDA (para. 4.4).

7.4 Subject to the above condition, the proposed project is suitable for a Bank Loan of$60 million with a maturity of 20 years, including a 5-year grace period, at the Bank'sstandard interest rate for LIBOR-based US dollar single currency loan, and an IDA Creditof SDR 61.8 million ($90 million equivalent) on standard IDA terms with 35 yearsmaturity to the People's Republic of China.

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CHINAGANSU HEXI CORRIDOR PROJECT

ANNEX A

Prolect Area Statistics

CHINAHEXI CORRIDOR PROJECT

GANSU PROVINCE

Climatic Data at Yumen and Anxi (1975-1980)

-Li bm Feb Mu Apr May Jn 1. Avg4 en Nov D Teb o

AV. _a (N Yu Q .2 2.2 4.5 5.4 7 4 5 3 14.8 8.6 4.8 1.7 2.1 0.9 61.9Ami 1.1 1.0 3.1 3.2 4.6 5.6 11.9 6.8 1.3 0.5 1.0 1.0 41.1

aA diys(da) 4 %39).a Yum 0.0 0.0 3 4.0 6.0 s.0 6.0 6.0 2.0 1.0 0.0 0.0 33Au 0 0 2 3 3 4 9 5 I 0 I 0 2n

Evnpagi () Yum 49.6 £1.6 2023 337.8 436.9 407.3 313.5 377.7 300.3 213.5 1103 56.2 2947Am 40.8 77.7 22n0 351.5 449.8 4382 441.5 4514 325.8 206.5 U.9 43.1 3140.5

Av j Y a -10.5 -6.4 1.5 9.1 15.5 20 21.6 20.6 14.8 7 -1.7 -8.4Ama .10.4 -5.2 3.6 11.5 18.2 22.9 24.9 23.8 17.4 8.7 -1.1 -3.5

MaUsols Yuma -3.6 . a 9.3 17.2 23 268 2S.3 27.8 22.6 15.1 5.1 -1.9Am- -1.8 3.7 12.6 20.3 26.4 30.5 32.4 31.6 26.1 18.4 7.5 -0.6

wasiffisoml Yallu -35.8 -12.5 -5.I 1.6 7.4 12.0 14.3 13.3 7.7 0.4 -7.0 *13.3Ama _-16.9 -12.3 4 3 9.4 14.3 16.5 16 9.5 1 -7.7 -14.5 1

IDiyi3 lee YS 12.2 13.5 144 15.6 15.6 14.8 14 14.5 14.9 14.7 12.1 11.4 Amai 15.1 16 16.6 17.3 17 16.2 15.9 16.6 16.6 17.4 15.2 13.9

Yumsem 225.2 239.0 255.4 273.5 317.3 324.8 314.4 312.2 295.6 279. 232.5 217.8 3267.5Ama 212.8 212.1 252.9 274.7 320.6 324.6 322.9 322.6 30.03 25.3 324.8 2a.s 337.9

Yoidea 54 46 35 33 30 37 45 43 39 38 44 54Ami 55 44 31 29 2 34 39 37 35 36 47 56

-wwd spew at)

Yina 4.6 4.6 4.7 4.7 4.3 3.9 3.5 3.6 3.6 3.8 4.5 4.7Ami 3.2 3.8 4 5 4.5 4.3 3 3.5 3.8 3.7 3.3 3.2 3.2

(D X.

- 64 -ANNEX A

SOILTYPE.XLS Table

GANSU HEXU CORRIDOR PROJECTLAND/SOIL TYPES AND AREA IN PROJECT AREA

Land/Soil Type Area Perecnt Organic Potentials for Crop Production(000 ha) % Matter (%)

A. UNCULTIVATED LAND

Deswt so#:Brown desert soil 33.1 14.5 0.2 - 1.0 Meidum-low to medium-high \aOther 19.2 8.4 Grazing only \d

Sub-total 52.3 22.9

Sa4 SossSaline soil <6% 50.0 21.9 Varies Medium-low to medium-high (after soil leaching) \bSaline soil >6% 15.2 6.7 Grazing onlyMeadow saline soil 49.1 21.6 Medium high (after soil leaching) \b & cMarsh/Bush saline soil 15.0 6.6 Grazing only \dOthers 5.8 2.5

Sub-total 135.1 59.1

Afedow and Mah LandMeadow soil, deeper w/table 9.3 4.1 1 - 6 High \csolonetz/marsh land 18.9 8.3 3 -20 Grazing only

Sub-total 28.2 12.3

W.nd-blown Sandy Sof:Semi-permanent sand 10.3 4.5 0.2 - 1.0 Low \aPermanent & Drifting sand 2.6 1.1 None \d

Sub-total 12.9 5.6

TOTAL UNCULTIVATED LAND 228.5 100.0

B. CULTIVATED LAND

Irigated desert sol 40.6 66.3 1 - 3 High (deeper w/table)

Water-logg.d so 17.5 28.6 1 - 2.5 Medium (shallow w/table)

Oth typef 3.1 5.1 0.2 - 2.5 Meidum-low and low

TOTAL CULTIVATED LAND 61.2 100.0

TOTAL 289.7

Note:\a: reclaimed land tums to irrigated desert soil after sustained organic applications.\b: reclaimed land turns to waterlogged cultivated land.\c: reclaimed land turns to irrigated desert soil.\d: bush cover to be preserved where exisitng.

- 65 - ANNEX A

CHINA Table 3QANBU HEXI CORRIDOR PROJZCT

Project Counties and Area Statistics - 1993

* ~~~~~<~Project City/Couariy/Pam > Proj Area

Item/Description Unit YumeinCity Amim Comay Swn Fuarms Totl All Trme m ino* ~~~~~~Total Project : Total Project Total Projet Tota Pro"et Total

Area Amea Ame Aream%

IAdfhl.ladeortlUml IToweahipe/Par rat. a 5: t0 8: 4 4 22 17 77VilaoeaiProdcAon Teamu . rat. 63 36:46 46 46 41: 68 89 IT7 166 94

Totwi landl area xODDha 2277.9 59.8 : 2293.7 130.8 132.3 99 3704.4 289.68

ToW tabaale land : xD ha 18.8 42.8 37.7 0 99.3Totalculuvaud land x= ha 12.8 13 22-8 0 37.6Irrapaid amn: x= ha 10.7 .0 10.7

Effective xODDha 24.1 14.1 1 9.2 15.7 112.2 22 : 54.5 40.3 75Auurnd N OWha : 20.5 12.9 1 6.4 13.3 : .4 8.4 : 45.3 33.6 :74

Foroat : O ha : 3.2 2.2: 4 3.3: 4.7 4.5: 11.9 9.9: 83

Grausland x030he 38.9 34.9 : 109.9 76.7 1 3.2 2 2 1 62 123.6 :76Tota ununod land xM ha : 045 523 : 2155 8148.6 8 0.7 75.7 : 3310.7 1447.3 : 44Of which: wasteland . 001) ha : 45 44.7 : 200.5 221.5 : 69.4 61.9 : 324.9 228.21 72

TOWa x. O 184.2 54.5 77.2 50.46 : 19.6 19.4 : 220.9 224.36 :44Rural : 79.5 4.4.5 57.5 45.5 : 12.1 12.9 1 49.1 202.9 68Farm worker, x. 24.3: 21.6: 7.2: 0 53.2:Families . :D 52.3 15.4: 20.9 23.2: 6 5.9: 79.2 34.5: 44:

Whea : = hith 9.30 4.70 7370 6260 2.40 1.30 28.40 12460 68:Corn : z00D be 2.30 2.20 290) 0.80 0.07 0.07 4.67 3.07 66:

Bailey sowm 0.A 0.58 0.00 0.M 2.77 2.77 3.35 3.35 I00

Beatie xm V 0.89 0.3.4 0.44 0.23 0.01 0.02 2.34 0.58 43

Cotioet x OD ha . 0.28 0.28 : 2.25 1.91 0.37 0.37 : 2.30 2.46 :91Hq,e sOOha 0.00 0.00 0.00 0.00 0.45 0.45 0.45 0.45 100Oilseea : x090ha 1 .38 0.58 : 0.82 0.77 : 0.28 0.28 : 2 38 1.53 :64Suparbeeu x sl ha 0.62 0.52 : 0.45 0.45 : 0.22 0.22 1 17 1.08 :92Vegetabe : zOha . 0 63 0.47: 0.39 0.37: 0.00 0.00: 202 064: 82Meloas : X0u ha 0.23 0.20: 0.63 0.60: 0.08 0.08 0.94 03811 94Black mcio~nseed eMlhe 0.75 0.75 0.70 0.30 0.917 0.97 2 42 2.42 [OD

Orchamds : zI ha 12.23 1.12 1.43 2.38 : 0.15 0.1 IS 2.81 2.64 : 94

Wheat : aDoWm 58.50 32.40 71.00 42.90 4370 4260 134.20 79.90 20:Corn M ~OM W 24.901 23210 27260 17260 0.52 0.52 43.02 41222 96Burlgy . WM2Wm 4210 4210 002 00 OO 15.40 25.40 19.50 19.50 [O0

Beat sOODatmm 3260 280 380O 1.20 0.04 0.04 7.4, 3.04 421

Cationi xOOID mm 0217 0.17 2.62 2,421 0.38 0.38 3217 2.96 93Hop x~~~~sOtu m 000) 000) 002) 000: 1.49 2.49 2.49 1.49 200

Oilseetds x OC mem 322 2.10 6210 204: 0.22 0.22 9.44 2.36 25Superbeat . 000 mm 2920D 25.50 28260 2830: 3.20 3.70 5200) 47.50 91Vqetable : X000,omm 19.10 24820 20.00 930M 0.283 0.00 ) 29.10 23.90 : 2

Meloem X00111 mm 8.30 7.40 24910 23.90 2.30 1.30 34.40 32.60 95

Black melonsaed x0omm 1.23 2219 2.29 2.29 2.09 1.09 3.62 3.57 99

Omhds I= wOOee 1.39 2.08 2.23 2216 02 7 0217 2.79 2.42 86

GVAO- ~ ~ : Y min

crops : Ymin : 08.50 73.40 92.20 84.00: 28.20 28.40 229.30 285280 82Forat : Yul .d 2.56 200 3.54 329: 0.30 V.70 580s 4.99 86:Livwsak Yul :d 43.50 23.31 20210, 1260: 1.46 2.43 65.76 43.33 66AtisscWiture Y, min : 0.58 0214 0.49 0.48 : 0.20 :~. 0 1217 0.72 62

Tota 154.24 97854 117.03 106.37 : 30.86 3i' 63 302.03 234894 78

iTati Agd4sceel Prad. Valm min 210.9 200 8 20.9 472.6

JAr. rura beema, par72pka YuaLn 229 12250 2813 1 753

UrJ dapeutia.:t . .

Largeatanus x W hd : 29.6 26.7 1 9.0 25.2 4.1 4.0 : 52.7 35.8 68ShatW/gm : x0hds. : 76.4 37.5 : 87.2 72.2 1 6.2 25.9 1 79.8 125.5 : 0Pit : = :d 59.2 34.9 : 32.2 29.5 : 9.9 9.7: 202.3 74.1 73


Classification of Wasteland, Reclaimable and Cultivated Land by Irrigation Areas

Irrigation Unit <-E Exising Wasteland by Class----- Suitable for Existing TotalArea Class I Class II Class Ill Class IV Class V Total Reclamation Cultivated Land

Area Area

Changma (000 ha) 0 5 51.1 90.5 7.3 153.9 46.5 39.7 193.6% 0 3 33 59 5

Shuangta 000 ha) 0 0.5 23.7 26.4 2.1 52.7 28.4 16.5 69.2% 0 1 45 50 4

Huahai C000 ha) 0 1 6.5 7.4 7 21.9 10.7 5 26.9% 0 5 30 34 32

Total ('000 ha) 0 6.5 81.3 124.3 16.4 228.5 85.6 61.2 289.7% 0 3 36 54 7

3x

GANSU HEXI CORRIDOR PROJECTCroPoed Area, Yields, Production 8. Values for 1993

Crop Changma Irrig. Area- < Shuangla lrrig. Area - luahal Irrig. Area - TotalCropping Cropped Yield Prod- Value Cropping CFopped Yield Prod- Value Cropping Cropped Yield Prod- Value Cropping Cropped Yield Prod- Value

ratio area lion (94 price ratio area lion (94 price ralio area lion (94 price ralio area (average) lion (94 price)(%) COO0 ha) (lon/ha) (000 ton) (Y`mIn.) (%) 000 ha) (Ion/ha) (000 Ion) (Y'min.) (%) (000 ha) (Ion/ha) (000 ton) (YmIn) (%) (000 ha) (ton/ha) (000 ton) (Yrmin.)

Grain cro0s:Wheat 34.3 7.02 6.67 46.82 75.04 44.6 409 562 22.99 36.81 48.6 1.58 6.24 9.86 1568 386 12.69 6.28 7967 12753Barley 16.3 3.33 6.02 20.05 33.05 0.2 0.02 4.28 0.09 0.15 00 0.00 000 000 0.00 10.2 335 6.01 2013 33.20Corn 12.5 2.55 10.02 25.55 35.04 8.6 079 1203 9.50 12.86 16.9 055 1025 564 7.68 11 8 389 10.46 4069 5558Beans 2.6 0.53 5.33 2.82 6.46 0.1 0.01 2.74 003 0.10 0.9 003 6.62 0.20 052 1.7 057 535 3.05 708

Sub-Total 656 13.43 149.59 53.5 4.91 4992 66.5 2.16 23.88 623 2050 000 223.39

Commodity croosCotton 0.0 0.01 0.01 0.07 24.9 2.29 1.22 2.79 40 54 5 5 0.18 0.90 0.16 2.34 7 5 2.48 119 2 96 42.95Oil crops 4.0 0.81 1.74 1.41 5.51 5.4 0.50 0.96 0.4a 1.86 7.1 0.23 2.06 0.47 1.81 4.7 154 1.53 2.36 9.18Sugarbeels 5.2 1.07 44.22 47.32 10.91 0.1 0.01 4.50 0.05 0.01 0 0 0.00 0.00 0.00 0.00 3.3 1.08 43 85 47.36 10.92Blackrmelorneeds 9.5 1.95 1.45 2.83 23.22 2.1 0.19 1.19 0.23 1.83 8.6 0.28 150 0.42 3.44 7.4 2.42 1.44 3.47 28.49Mtelons 1.6 0.32 33.94 10.86 6.53 5.7 0.52 39 39 20.48 12.24 1.5 0.05 22.48 1.12 0.62 2.7 0.89 36.48 32 47 19.39Vegeabtles 2.5 0.51 34.51 17.60 17.44 2.5 0.23 22.76 5.23 5.28 2.8 009 13.05 1.17 1.22 2.5 0.83 28.93 24.01 23.94 1Hop 2.0 0.41 3.22 1.32 17.08 0.4 0.04 4.32 0.17 2.25 0.0 0.00 0.00 0.00 0.00 1.4 0.45 3.32 149 19.33 oNOthers 3.2 0.65 3.7 0.34 7.1 0.23 3.7 1.22 0 00 0.00 0.00 4

Sub-Toaud 28.0 5.73 80.76 44.9 4.12 64.01 32.6 1.06 9.43 33.2 10.91 0.00 154.20

Green manure 6.4 1.30 1.6 0.15 0.9 0.03 4.5 1.48 0.00 0.00

TOTAL 100.0 20.46 230.35 1000 9.18 113.93 1000 3.25 33.31 100.0 32.89 0.00 37759

lbui:a

GANSU HEXI CORRIDOR PROJECTAverage 166S993) Yields for Anxl County, Yumen City & State Frams

(tonsiha)

1989 1990 1991 1992 1993 Average 1989-93Crop And Yumen C. S. Farms Anxi Yumen C. S. Farms Anri Yumen C. S. Farms Anri Yumen C. S. Farms Anxi Yumen C. S. Farms Anxi Yumen C. S. Farms Overall

GRAIN CROPS:

Whoal 5.09 5.21 3.21 5.36 5.62 3.55 5.63 6.22 3.78 6.16 6.49 3.83 6.47 6.78 3.89 5.74 6.06 3 65 5.15

Barley 8.23 3.96 4 27 4.32 5.37 5.58 8.23 4 70 6.47

Corn 5 70 4.49 4.65 8 15 9.28 6 92 9.36 9.93 9.14 10.59 10.10 10.B8 10 46 7.50 8 94 8 85 7.05 8 28

Bean 4.36 4.49 2.89 3.60 4.09 4.14 345 5.46 2.88 4.23 594 2.69 5.32 547 2.61 4 19 5.09 3.04 4.11

COMMODITY CROPS:

Colton 0.89 0.25 1.19 096 1.29 0.72 1.02 122 075 1.10 1.26 0.90 1.03 1.17 079 0.87 0.94

Oi seed 1 72 1.82 0.87 1.23 2.00 122 1.27 1.83 1 13 1.13 2.01 0.9B 1.34 1.B9 1.19 1.34 191 1.08 1.44

Sugarbeet 35.05 4728 16.67 3360 48.28 25.54 41.01 51.25 19.89 42.76 5215 5.25 40.86 49.19 33.42 38.66 4963 20.15 36.15 1

Black melon seed 1.31 1.61 1.48 1.57 1.72 161 1.60 1.80 1.55 2.07 1.74 1.52 159 1.45 1.12 163 1.66 1.46 1.58 0°00

Melon 53 45 46.13 12.36 31.24 42.86 20.97 54.36 41.84 12.88 45.71 41.32 12.00 39 56 35.90 14 41 44.86 41.61 14.52 33 67 1

Vegetables 17.29 30.54 25.60 16.18 29.77 2308 24.14 25.98 34.00 31.19 3024 33.33 26.60 30.54 25.20 23.08 2941 28.24 26.91

Hops 3.44 3.72 3.54 3.25 3.35 3.46 3.46

Souice: StalisLical fepot llfnom Anxi County. Yuffen City and Provincial Stae Farm Bwueau tor 1989-93.

I3X,

C)%:0

Comparison of Demographic and Socio-economic Situationsbetween Gansu Province and the Eleven Emikratincr Counties

Average at Grain productionproportion Raeo am Aumo which: ra. Piroportionincome of pena Gper capita of poor illiterate occupation per Fiat irrigated Yield of minority erosion land Population

of farmer population peron capita of farmer land bnd nationality proportion densityOrder (kg) (%) (% (ha) (ha) (ha) (kg/ha) population NO. (Person/kmn')

China 922 500 8.8 25.1 0.104 0.027 4131 9.1 18.8 123

Gansu 563 390 22. 3 39. 17 0. 182 0. 065 0.047 2622 8. 3 38. 2 51

Out migration 350 219 49. 2 67.30 0.114 0.018 0.017 2106 22. 22 75. 2 114

countiesDongXiang 282 86 222 72.2 83.96 1. 667 0.014 0.026 2036 85. 2 99.8 155

TanChang 286 85 164 47. 1 75.79 0. 113 0.012 0.004 1649 2. 7 70.9 83

JiShiShan 301 83 215 58. 8 74.56 0.093 0.018 0.020 2591 52. 1 84.0 223

Yongjin 336 82 317 49. 2 41. 19 0. 143 0. 041 0.043 2546 13. 3 99. 0 101

LIiXian 337 81 229 38.3 64.92 0.159 0.011 0.013 1731 1.6 80.5 109

MingXian 358 80 181 58. 6 70.63 0. 109 0.014 0.008 2100 3. 2 50. 1 114

HeZhen 368 79 240 39. 2 69. 79 0. 136 0.023 0.023 2948 57. 1 83.4 183

1.ingTan 370 78 203 60.4 66.57 0. 139 0.021 0.006 1941 27. 3 92.5 96

WuDu 377 77 203 42.2 64.52 0.105 0.008 0.014 1712 2.7 76.3 104 t3

ZhouQu 380 76 192 51. 9 69.51 0.097 0.009 0.014 1755 32.2 55.5 41

I.ingxia 430 70 270 42. 9 65. 25 0. 079 0.033 0.037 3506 39. 5 85. 1 279

Source: Gansu Hexi Corridor Project Feasibility Study Report

- 69A-- ANNEX A

Table 8

Characteristics of production systems

Changma Shuangta Changma Shuangtatownship township State farm State farm a/

Households/township-farm 2300 1400 1100 650Cropped area/township-farm 2400 1700 2400 680Households/village-team 320 280 45Cropped area/village-team 330 330 100Cropped area ha/household 1.05 1.18 2.18 1.05Cropped area mu/per capita 4 4.5 10 5% of cropped area in:

wheat 40 40 15 35corn 25 15 c/ -

barley 5 - 65 5cotton - 35 - 50broadbeans 5 - - -linseed 5 b/ c/ -

sugarbeet 7 - c/ -

melonseed 8 3 15 -

melon, vegetables 5 7 - -

hops - - 5 10

% of cropped area in double-croppingcatch crop/wheat

vetch 5 5 - -

linseed 5other 5

relay-croppingcorn/wheat 30 10--

Animal raising per householddraught animals 1.2 0.7pigs 3 2sheep 3 2

Numbers/100 ha of:draught animals 109 57 0pigs 281 172 0sheep 285 170 420people 370 330 0

N-P-K fertilizer units fromanimal manure d/ 95-40-70 1 50-70- 11 5 35-1 5-30Farming practices: Townships State farmsarea/one field 1-2 mu 5-20 hatractor HP/1 00 hectares 1 50 e/ 100 farm

+ 1 50 privateone tractor plows 10 ha (15 HP) 100 ha (70 HP)irrigation 1-2 mu field 2 m-large stripWheat seeds kg/ha 450 375Wheat: units N-P fertilizer/ha 220-100 1 80-120Wheat: herbicide locally whole area

- 70 -


ANNEX B

Cost Estimates and Procurement

ChkiaHod Conidor ProjeA

Components Proed Cost Sunmary

(RMB Millon) (USS Million)% % Total Vs % Tobal

Foreign Base Foreign BaseLocal Foreign Total Exchange Costs Local Forelgn Total Exchange Costs

A. Irrigation and Drainage1. Changma Reservolr 92.50 203.76 29626 69 16 11.01 24.26 35.27 69 162. Changma lr R rReselemetr 7.94 7.56 15.50 49 1 0.94 0.90 1.85 49 13. Changmr rlation Area 319.48 388.90 708.38 55 38 38.03 46.30 84.33 55 384. ShuangtaIringation Area 97.73 115.82 213.55 54 12 11.63 13.79 25.42 54 125. Huahai lnigation Area 38.64 39.54 78.18 51 4 4.60 4.71 9.31 51 46. Monitoring & Simulation System 0.52 3.48 4.00 87 - 0.06 0.41 0.48 87 -

Subtotal Irrigation and Drainage 556.79 759.07 1,315.87 58 71 66.29 90.37 156.65 58 71B. AgricLtural Support & Services 7.20 18.28 25.47 72 1 0.86 2.18 3.03 72 1C. Livestock Development 8.62 11.33 19.95 57 1 1.03 1.35 2.38 57 1D. ForestryDevekeprent 15.15 10.97 26.11 42 1 1.80 1.31 3.11 42 1E. Environment Protection 21.28 26.41 47.69 55 3 2.53 3.14 5.68 55 3F. Land Settement 153.84 154.06 307.90 50 17 18.31 18.34 36.65 50 17G. Institution Developent 34.29 72.35 106.64 68 6 4.08 8.61 12.70 68 6Total BASEUNE COSTS 797.17 1,052.46 1,849.63 57 100 94.90 125.29 220.19 57 100

Physical Contingenres 44.39 62.49 106.88 58 6 5.28 7.44 12.72 58 6Price Contingencies 336.32 404.80 741.11 55 40 11.98 14.32 26.30 54 12

TotalPROJECTCOSTS 1.177.88 1,519.75 2,697.62 56 146 112.17 147.05 259.22 57 118

m >4

(PX-w

ChinaHexi Corrndor Project

Expenditure Accounts Project Cost Sunmary

(RMB Million) (USS Million)% % Total % % Total

Foreign Base Foreign BaseLocal Foreign Total Exchange Costs Local Foreign Total Exchange Costs

1. Investmnwt CostsA. CM[lvwrks 433.66 697.78 1,131.44 62 61 51.63 83.07 134.69 62 61B. Mach. 8 Equip. 15.97 69.68 85.65 81 5 1.90 830 10.20 81 5C. Vehicle 2.66 8.95 11.61 77 1 0.32 1 07 1 38 77 1D. Land Settlemrnt 76.54 75.66 152.19 50 8 9.11 9.01 18.12 50 8E. Training & study tours

Oversestraining&tours - 2.48 2.48 100 - - 030 030 100 -

Local training&tour 4.13 12.23 16.37 75 1 0.49 1.46 1 95 75 1Subtotal Tralning&studytours 4.13 14.71 18.85 78 1 0.49 1.75 2.24 78 1F. Specialist Services - 6.00 6.00 100 - 0.71 0.71 100 -

G. Rese & experimernt 25.94 25.71 51.65 50 3 3.09 3.06 6.15 50 3H. Operaon & mairtenanr;e 5.99 7.73 13.72 56 1 0.71 0.92 1.63 56 11. Surveyanddesign 29.34 11.98 41.31 29 2 3.49 1.43 4.92 29 2 4

J. Plantig and Pmduction Matedals 15.22 6.03 21.25 28 1 1.81 0.72 2.53 28 1K On FarmnWorks 161.68 92.28 253.96 36 14 19.25 10.99 30.23 36 14L. Other 1.79 0.48 2.27 21 - 0.21 0.06 0.27 21 -

M. Projed Managemrn 24.27 35.47 59.74 59 3 2.89 4.22 7.11 59 3Total lnvesbnent Costs 797.17 1,052.46 1,849.63 57 100 94.90 125.29 220.19 57 100II. Recurrent CostsTotalBASEUNECOSTS 797.17 1,052.46 1,849.63 57 100 94.90 125.29 220.19 57 100

Physical Contingencies 44.39 62.49 106.88 58 6 5.28 7.44 12.72 58 6PriceContinencie 336.32 404.80 741.11 55 40 11.98 14.32 26.30 54 12

Tota PROJECTCOSTS 1,177.88 1,519.75 2,697.62 56 146 112.17 147.05 259.22 57 118

E1>

ChinaHexi Corridor Project

Project Components by Year - Base Costs(RMB Million)

Base Cost1996 1997 1998 1999 2000 2001 2002 2003 2004 2006 Total

A. Irrigation and Drainage1. Changma Reservoir 51.68 75.46 62.18 73.00 32.98 0.50 0.46 - - - 296.26

2. Changma Reservoir Resettlement 3.00 9.08 1.46 0.96 1.00 - - - - - 15.503. Changma Irrigation Area 67.36 71.54 81.27 99.69 103.22 99.69 101.05 42.00 24.07 18.49 708.384. Shuangta Irrigation Area 19.77 23.79 25.76 25.67 26.55 31.25 30.28 16.64 7.21 6.62 213.555. Huahai Irrigation Area 13.79 13.96 9.15 11.21 10.44 7.44 4.48 4.42 2.45 0.84 78.186. Monitoring & Simulation System 2.00 1.20 0.60 0.20 - - - - - - 4.00

Subtotal Irrigation and Drainage 157.60 195.04 180.41 210.74 174.19 138.88 136.27 63.06 33.73 25.94 1,315.87B. Agricultural Support& Services 1.93 10.73 9.42 0.78 2.06 0.11 0.11 0.11 0.11 0.11 25.47C. Livestock Development 2.04 2.15 1.49 1.48 2.52 1.39 1.39 2.54 2.48 2.48 19.95D. Forestry Development 3.75 3.50 3.26 2.93 3.07 3.63 2.16 1.69 1.28 0.83 26.11E. Environment Protection 6.23 5.46 5.03 5.17 5.70 4.83 4.35 3.62 3.55 3.73 47.69F. Land Settlement 9.24 20.58 27.39 2e.13 35.07 35.91 53.20 39.70 39.40 19.28 307.90G. Institutional Development 23.61 20.49 14.45 8.81 7 69 6.53 6.66 6.36 6.04 6.01 106.64Total BASELINE COSTS 204.41 257.95 241.45 258.04 230.30 191.28 20414 117.09 86.59 58.38 1.849.63

Physical Contingencies 12.61 16.52 15.18 16.52 13.12 9.59 10.23 5.85 4.33 2.92 106.88Price Contingencies

InflationLocal 4.37 15.75 23.18 33.63 40.77 44.29 58.06 42.52 37.05 26.99 326.61Foreign 1.70 6.54 10.37 15.66 16.95 16.54 20.57 12.75 10.64 8.57 120.28

Subtotal Inflation 6.07 22.29 33.54 49.29 57.72 60.84 78.63 55.28 47.68 35.55 446.89Devaluation 5.32 19.42 28.28 39.82 41.74 38.78 47.57 29.20 24.30 19.79 294.23

Subtotal Price Contingencies 11.39 41.71 61.82 89.11 99.46 99.62 126.19 84.48 71.98 55.35 741.11Total PROJECT COSTS 228.41 316.18 318.45 363.68 342.88 300.49 340.56 207.43 162.90 116.65 2,697.62

Taxes 4.44 7.53 7.69 9.23 11.72 6.46 6.83 2.82 1.62 1.27 59.61Foreign Exchange 137.74 191.47 193.83 220.45 194.81 163.10 179.89 101.32 78.13 59.01 1,519.75

(D

CheuHiod Cokior Posct

Expenditure Accounts by Year - Bae Costs(RMB MilWn)

Base Cost Foreign Exchdw199w 1997 1999 199 2000 2001 2002 2003 2004 2005 Total % Anount

1. Invesdment CostsA. CM works 148.22 178.81 171.17 181.71 134.99 109.72 109.90 41.00 33.58 22.34 1,131.44 61.7 697.78B. Mach. & Eq. 7.56 16.08 10.94 17.05 21.59 4.01 4.08 1.65 1.35 1.35 85.65 81.4 69.68C. Vehile 4.49 4.21 1.80 0.71 0.39 - - - - 11.61 77.1 8.95D. Land SeWLment 4.02 15.77 13.93 14.77 16.10 17.73 23.71 19.57 17.22 9.38 152.19 49.7 75.66E. Trainng A study tours

Ova beining & ltout 0.64 0.60 0.84 0.40 - -- - - 2.46 100.0 Z48Locaitrabiing&lotw 3.27 3.11 2.21 2.35 2.61 1.05 1.30 0.38 0.06 0.03 16.37 74.7 12.23

Subtotal Training & study tours 3.91 3.71 3.05 2.75 2.61 1.05 1.30 0.38 0.0o 0.03 18.85 78.1 14.71F. Spewis Services 1.29 1.65 1.77 0.99 0.15 0.10 0.05 - - 6.00 100.0 6.00G. Resefrch & perxinmnt 7.17 6.73 6.38 3.75 8.01 2.74 7.37 1.81 5.71 1.99 51.65 49.8 25.71H. OperaUon&mantawnce 1.05 1.15 1-05 1.15 1.75 2.79 2.64 2.14 - 13.72 56.3 7.731. Survey addesign 11.29 11.09 5.05 5.04 3.51 3.09 0.60 0.57 0.55 0.53 41.31 29.0 11.98J. Plurig nd Produdctnm Mbhis 0.33 2.20 2.00 1.90 2.93 3.37 2.88 2.21 1.86 1-57 21.25 28.4 6.03KOnFarmnWaod 6.01 10.15 18.40 2222 3Z15 41.04 45.4 41.96 20.53 15.64 253.96 36.3 92.28L. OtheU 0.13 0.74 0.27 0.34 0.40 0.03 0.03 0.11 0.11 0.10 2.27 21.3 0.48 --JM. Prcct Mangeent 8.96 5.67 5.64 5.67 5.70 5.62 5.75 5.66 5.62 5.45 59.74 59.4 35.47

Total Inves_nt Costs 204.41 257.95 241.45 258.04 230.30 191.28 204.14 117.09 86.59 58.38 1,89.63 56.9 1,052.46fL. Recunert CostsTotal BASEUNE COSTS 204.41 257.95 241.45 258.04 230.30 191.28 204.14 117.09 86.59 58.38 1,849.63 56.9 1,052.46

Physk ConUngencies 1261 16.52 15.18 16.52 13.12 9.59 10.23 5.85 4.33 2.92 106.88 58.5 62.49Price Coniled

hilationLDCII 4.37 15.75 23.18 33.63 40.77 44.29 58.06 42.52 37.05 26.99 326.61Foreign 1.70 6.54 10.37 15.66 16.95 16.54 20.57 12.75 10.64 8.57 120.28 100.0 120.28

Subtodal lnfaion 6.07 2229 33.54 49.29 57.72 60.84 78.63 5528 47.68 35.55 446.89 26.9 120.28Devauon 5.32 19.42 28.28 39.82 41.74 38.78 47.57 29.20 24.30 19.79 29423 96.7 284.52

SubtoalPim Confingencles 11.39 41.71 61.82 89.11 99.46 99.62 126.19 84.48 71.98 55.35 741.11 54.6 404.80Total PROJECT COSTS 228.41 316.18 318.45 363.68 342.88 300.49 340.56 207.43 162.90 116.65 2,697.62 56.3 1,519.75

Taxes 4.44 7.53 7.69 9.23 11.72 6.46 6.83 2.82 1.62 1.27 59.61Foreign Extag 137.74 191.47 193.83 220.45 194.81 163.10 179.89 101.32 78.13 59.01 1,519.75

M a.

Hd fIdor R*dU,.pegtN.mPcm I by Comtpoa.Sb 4amk Incing- CufltgeacIms

(RMS MMM)

IrIgM*n and Onubug

Cannma Chann Shuwanga Hu AirkulturnlChangmn Resevolr Irrigiato IrrIgaton rgSao& SImulaon Support s Lvestock Forestry Environmt Voluntary kutIonIReservoir Reetlement Area Ara. Atom Services Development Devopnmnt Protetkon Resettlement Development Tobl

1. Investment CostsA CrWlvork 338.58 5.65 720.59 19558 61.05 - 9.09 7.49 2.86 2040 230.59 15.07 1,606.96B. Mach. & Equip. 50.88 - 26.39 2.53 0.57 14.56 9.73 6.66 - 1.55 8.40 121.26C VehIe 0.91 - 0.36 - . - 4.61 0.33 0.72 - 6.61 13.55D Land Settemmi - 10.63 - - - - - 228.5 - 239.22t- Traifnin A study inur

ae tboir S Ia - - - . - - - - - - 3.08 3.08LocalSrig&taour 1.16 - 2.17 0.47 0.22 - - - - - 18.08 22.10

Subtotaitra lkng &stdyloams 1.16 - 2.17 0.47 0.22 - - - - - 21.16 2519F SpeIast S e - - - - - - - 7.57 7.57G. Reseci aIepar - - - 1.38 4.72 2.76 . 38.57 24.39 6.13 75.95H Opq S &m a ohndew 6.02 - 5.08 6.12 374 - - - - - 20.961. Surawyuiddmlpn - 25.15 13.03 6.09 - - 1.41 7.94 - 53.82J. Plmgw aid Frokiin Matertab - . - - . - - 13.08 19.61 0.57 33.25K. On FnnWlaft 1.23 260.21 95.93 36.68 - 0.85 0.06 5.95 5.59 * 408.51L OChes 1.76 - - - - - 0.64 0.48 0.37 . - 3.25M. Precd Msrgfrr-t 1.50 - - 4.78 84.05 90.33 1

Totl InvestvnenCosta 399.32 19.01 1,039.95 315.03 108.36 4.72 32.50 31.17 37.59 71.08 489.90 148.99 2,697.62 -4II. Recurent Cosdt U

Total PROJECT COSTS 399.32 19.01 1,039.95 315.03 108.36 4.72 32.50 31.17 37.59 71.08 489.90 148.99 2,697.62 1

Taxes 12.19 - 30.93 3 65 0.66 0.49 2.94 1.22 1.03 3.16 0.26 3.08 59.61Foregn Erhwi 275.26 9.24 567 64 169.51 54.21 4.10 23.32 17.34 15.20 39.20 244.61 100.13 1.519.75

(D F 2rt M P

Cf

I-.-

ChinaHexi Coandr Prqect

Expenditure Accounts by Components - Base Costs(U1S5 Minion)

Irrigation and DrainageMonitorng

Changma Changma Shuangta Huahal & Agricultural PhyskalChangma Rervoir Irrigation Irrigation Irrigaton Simulaton Support & Livestock Forestr Environment Land Institutional ContingenciesReservoir Resttlement Area Area Area System Services Development Development Protection Settlement Development Total % Amount

I. Investment CostsA CMtworks 30.32 0.57 60.00 16.25 550 0.85 058 030 1 61 17.23 1.49 134.69 6.1 8.25B Mach.SEquip 4.13 2218 022 006 - 136 0.78 0.59 - 017 071 10.20 7.0 0.72C Vehice 0.08 - 004 - - - 044 0.04 008 - - 0.71 1.38 1.7 0.020 Land Settent - 100 - - - - - - - - 17.12 - 18.12 5.0 091E. Training & study tours

Overseas training & tours - - - - - - - - - - 0 30 0.30 5.0 0.01Local tranng tour 0 10 - 0.19 0 04 0 - - - - - - 160 1.95 5 3 0 10

SubtotalTraining &studytours 0.10 - 019 004 002 - - - - - - 1.89 2.24 52 0.12F SpecialistSec- - - 0.71 071 50 0.04G Research & expenment - - - 014 - 0.48 0.24 - - 2 95 1 79 0.56 6.15 5 0 0.31H Operation & maintenance 0.49 - 036 0 48 0 30 - - - - - - - 1.63 65 011I Surveyanddesign - 236 1 25 057 - - - 011 063 - - 4.92 50 0.25J Planting and Producbon Materials - - - - - - 0 95 154 0 05 - - 253 50 013K OnFanmWorks - 0.13 1920 704 287 - 006 001 047 044 - - 30.23 50 1.51L Othem 0.15 - - - - - 0.06 003 003 - - - 0.27 7.8 0.02M PrqedtMragemert 0.15 - - - - - - - - 036 6.61 7.11 50 0.36

TotallnvestmentCosts 35.27 1.85 84.33 2542 9.31 048 303 2.38 311 568 36.65 1270 220.19 5.8 12.7211. Recurrent Costs

35.27 1.85 8433 2542 931 048 303 2.38 311 568 3665 12.70 220.19 5.8 12.72 oPhyscalCont ies 3.52 0.09 422 127 047 002 0.15 012 015 028 1.83 0.60 12.72 -Prce Contingencies

InaonLocal 2.40 0.17 15.69 504 160 0.00 0.15 054 0.76 106 9.97 1.50 38.88Foreign 1.72 0.04 567 171 0.44 001 014 0.20 013 041 2.99 086 14.32

Subtotal InflaUon 4.12 0.21 21.36 6.75 2 05 0.02 0.29 0.74 0.89 1.47 12.96 235 53.20 - -Devaluation -1.65 -0.12 -1080 -3 51 -1.12 -0.00 -0.10 -0.37 -0 52 -0 72 -6.94 -1.04 -26.90

SuttotalPnceConbngencies 2.47 0.09 10.56 3.24 092 0.02 0.19 037 036 0.75 602 1.31 26.30 5.2 1.3641.25 2.03 9911 2994 1070 0.52 337 2.86 362 671 44.51 14.61 259.22 5.4 14.06

Taxes 1.19 - 2.95 036 0.06 0.05 0.31 0.12 011 030 0.03 0.32 5.80 55 0.32ForeignExchange 28.40 0.99 5428 16.18 5.39 0.45 2.42 1.61 150 371 22.25 987 147.05 5.6 &.19

m tzIF(0 Ht irt m

0-

- 77 -

ANNEX BTable 2 page 1 of 3

GANSU HEXI CORRIDOR PROJECTProcurement Methods for Wor_

Item Procurement Methods ConstructionICS I NCB I Other I NBF Total Start End

<_ Y million (Base Cost- >Chanoma Reservoir I ____ _______i

Temporary works 3 NC8:(a) Access road 22.0 22.01 Jan-96 Jun-97(b) Power supply 9.5 9.51 Jan-96 Jun-97(c) Communication 3.2 3.21 Jan-96 Jun-97

Sub-total 34.7 34.71

IC81 Changma Dam Civil Work 154.3 _ 154.3 Jan-96 Dec-G0

Other temporary site works 45.1 45.1 Jan-96 Jun-98

Sub-total 154.3 34.7 45.1 234.1 |

Chanama Irriaation AreaNCB1 Trunk Canal extension _ _ _

(a) Intake complex and canal 46.9_ 48.91 Jul-99 Dec-00(b) Mini Hydropower station 14.81 14.81 Jan-00 Dec-00

NC82 Trunk Canal Improvement 12.41 12.41 Jan-98 Dec-99

NCB3 New West Main Canal: l _ l

(a) Canal from 0 km - 25 km 37.11 37.11 Jan-96 Jun-99(b) Canal from 25 km 49.5 km 15.91 15.91 Jan-96 Jun-99(c) Mini Hydropower station 18.11 18.1j Jun-97 Jun-99

NCB4 Sub-main and Branch Canals on West MC: i i

(a) Sub-main #1 &branch canals 25.51 25.51 Jan-97 Dec-00(b) Sub-main #2 & branch canals 18.51 16.51 Jan-97 Dec-00(c) Sub-main S3 & branch canals 16.21 16.21 Jan-97 Dec-00(d) Sub-main #4 & branch canals 13.21 13.21 Jan-97 Dec-00(e) Sub-main #5 & branch canals 12.4 12i41 Jan-97 Dec-00(f) Sub-main #6 & branch canals 11.5 11.51 Jan-97 Dec-00

NCB5 East Main Canal 24.1 24.11 Jul-98 Doc-40

NCB6 Branch canals on East MC X 3.1 3.1 Jan-00 Dec-00

NC87 North Main Canal 5.8 5.8 Jan-98 Dec-99

NCB8 Branch canals on North MC 9.7 _ _ 9.7 Jul-98 O3c-00

NCB9 Main Drains (4 packages) 21.7 21.7 Jan-96 Jun-99

NC810: Branch drains (10 pacakages) 38.9 38.9 Jul-96 Dec-00

Other 1: West Main Canal Area:

(a) On-farm works 110.2 110.2 Jan-96 Dec-05(b) Land leveling 23.0 23.0 Jan-96 Dec-05

Other 2: East Main Canal Area: l

(a) On-farm works 30.0 30.01 Jan-97 Dec-O5(b) Land leveling i 7.0 7.01 Jan-98 Dec-05

-78 - ANNEX B

Table 2 page 2 of 3

Item Procurement Methods | ConstructionICB NCB Other NBF Total I Start- End

C million (Base Co>

Other 3: North Main Canal Area: _ | | i _(a) On-farm works 49.4 49.4[ Jan-98 Dec-05(b) Land leveling L 11.0 11.01 Jan-98 Dec-05

Other 4: South Main Canal Area:(a) On-farm works 29.7, 29.71 Jan-97 Dec-05(b) Land leveling 7.0 7.01 Jan-97 Dec-05

Other 5: Misc. Permanent Works o 50.0 50.0i Jan-96 Dec-05

Sub-total 343.8 317.3 661.1 i

Shuanata Irriaation Area _ _ __ _ _ _X X =__

NCB1 Shuangta Mini-hydro Station 24.21 24.2; Jan-96 Dec-98

NCB2 North Main Canal (2 packages) 19 .0 19.01 Jan-96 Dec-96

NCB3 North MC branch canals 11.6 11.6i Jan-96 Dec-02

NCB4 South main Canal (2 packages) 18.11 18.1, Jan-97 Dec-99

NCB5 South MC branch canals 9.71 9.71 Jan-97 Dec-02

NCB6 Xihu Mian Canal 2 packages) 11.7]- 11.71 Jul-98 Jun-02

NCB7 Xihu MC branch canals 6.3 6.31 Jul-99 Dec-02

NCB8 Main Drains (2 packages) 7.8 7.61 Jan-96 Jun-99

NC89 Branch drains (5 packages) 14.1 14.11 Jan-97 Dec-02

Other 1: Other permenant site works 12.0 12.0j Jan-96 Dec-02

Other 2: South MC Area:(a) On-farm works 18.7 18.7j Jan-97 Dec-05(b) Land leveling 7.0 7.0 Jan-97 Dec-O5

Other 3: North MC Area:(a) On-farm works _ 35.4 35.4 Jan-96 Dec-05(b) Land leveling 15.0 15.0 Jan-96 Dec-05

Other 4: Xlhu Sub-MC Area: = _ =(a) On-farm works 8.0 8.0 Jan-98 Dec-05(b) Land leveling 2.0 2.0 Jan-98 Dec-05

Sub-total 122.3 98.1_ 220.4

- 79 - ANNEX BTable 2 page 3 of 3

Item Procurement Methods ConstructionICB I NCB I Other NBF Total I Start End

<_ Y million (Base Cost) ->

Huahal Irrigation Area _

NCB1 Headwork 2.5 2.51 Jan-98 Jan-97

NCB2 Trunk Canal: _

(a) Canal from 0.0 km - 7.6 km 5.7 5.71 Jan-96 Jun-97(b) Canal from 7.6 km - 14.6 km 4.2 4.21 Jan-96 Jun-97(c) Canal from 14.6 km - 21.5 km 4.3 4.31 Jan-96 Jun-97(d) Branch canals 1.0 1.0[ Jan-96 Jun-97

NCB3 West MC and SUB-main canals 3.5 3.51 Jan-98 Dec-00

NCB4 North MC and SUB-mains 1.8 1.8 Jan-96 Dec-00

NCB5 North MC & Sub-mains 5.8 5.8 Jan-96 Dec-00

NCB6 Branch drains 9.7 9.71 Jul-96 Dec-00

Other 1: East MC Area:(a) On-farm works 4.1 4.11 Jan-99 Dec-05(b) Land leveling 2.1 2.11 Jan-99 Dec-05

Other 2: West MC Area:T____(a) On-farm works 6.4 6.41 Jan-99 Dec-05(b) Land leveling 3.5 3.5] Jan-99 Dec-05

Other 3: North MC Area: _ _.

(a) On-farm works 8.7 8.71 Jan-99 Dec-05(b) Land leveling 5.0 5.o] Jan-99 Dec-05

Other 4: Other permanent site works _ r 5.2 5.2 Jan-96 Dec-00

Sub-total 38.5 35.0 73.5

Other Civil Works _

NCB1: Project Management Office __=___ 6.0 6.0 Jul-96 Dec-98NCB2: Guest House & Staff Quarters 6.5 6.5 Jan-97 Dec-98Other 1: Agriculture 4.8 4.8 Jan-97 Dec-00Other 2: Forestry 1.1 1.1 Jan-97 Dec-00Other 3: Livestock 4.1 4.1 Jan-97 Dec-00Other 4: Settlement 8.0 8.0 Jan-96 Dec-02

Sub-total _ 125 18.0 30.5 _

TOTAL PROJECT (Y'min.) 154.3 551.8 513.5 1219.6(USS million @ Y8.40/USS) 18.4 65.7 61.1 145.2

Prior Review of Bid Documents (>S2.0 million _

ICB = 1 contract _

NCB = 17 contracts |

GANSU RHXI CORRIDOR PROJECTProcurement of Materials., Machinery and EquiDment

- ------------ Procurement methods--------Item Qty. Unit ICB LIB NCB Others Total

-------- Price \a Amount: : Amount Amount Amount Amount: : (Y'000) (Y'000) (Y0UUU) (Y0o0) (Y'OOO) (Y'000)

VehiclesSelf-tipping trucks, 5 tons 10 150.0 1500.0 : 1500.0Trucks, 5 tons 10 75.0 750.0 : 750.0Bus( 44 passengers : 4 150.0 600.0 : 600.0Mini bus, 22 passengers : 3 370.0 1110.0 : 1110.0Mini bus, 16 passengers : 2 75.0 150.0 : 150.0Field vehicles 17 305.0 5185.0 : 5185.0

Sub-total Vehicles 9295.0 : 9295.0

O&M Machinery a equipment : :Scraper, 0.6m3 7 340.0 2380.0 2380.0Backhoe excavator, 1 m3 : 3 350.0 1050.0 : 1050.0Bulldozer, 74 kw : 9 100.0 900.0 : 900.0Bulldozer, 88 kW 9 150.0 1350.0 1350.0Concrete mixer, 0.4 m3 10 40.0 : 400.0 400.0Truck-mounted crane, 8 tons : 2 200.0 : 400.0 400.0Diesel generators, 86 kw : 4 90.0 : 360.0 360.0Tipping trailer, 0.5 m3 20 18.0 : 360.0 360.0

Sub-total 5680.0 1520.0 7200.0 X0

Aqricultural machineryExcavator, 0.6 m3 : 5 350.0 1750.0 : 1750.0Tractor, 74 kw 33 100.0 3300.0 : 3300.0Land leveling machine 33 25.0 825.0 : 825.0Bulldozer, 74 kw 55 100.0 5500.0 : 5500.0Truck-mounted crane, 8 tons : 2 200.0 : 400.0 400.0

Sub-total 11375.0 400.0 11775.0

Office Equipment : : : .PC conmputers, 486 20 30.0 .600.0600

Copying machine : 5 50.0 : 250.0 250.0 X smFax machine 2 40.0 80.0 80.0 M ¢

rt ( XSub-total 850.0 80.0 930.0 to

Laboratory Equipment .Universal testing machine, 100 tons 1 80.0 80.0 80.0Universal testing machine, 200 tons 1 100.0 100.0 100.0 JAgricultural adaptive research equi sum : : 600.0 600.0

Sub-total : : : : : 780.0 780.0

; : <-----------Procurement methods--------Item Qty. Unit ICB LIB NCB Others Total

-------- Price : \a Amount* ~ ~ mut A-on m7Tt Amount

(Y'000) (Y'0u0) (Y'000) (Y'000) (Y'000) (Y'000)Environmental Monitoring Equipment \ sum * * * 4000.0 4000.0

Settlement Monitoring Equipment \b sum 1000.0 : . 1600.0 2600.0

VHF Communication Equipment \b sum 2500.0 : 1000.0 3500.0

Irrigation Monitoring Equipment \b sum 800.0 : 400.0 1200.0

Electrical/Mechanical Equipment : :Turbine/generator set, 6500 kw 2 3870.0 7740.0 : 7740.0Turbine/generator set, 1250 kw 1 1130.0 1130.0 : 1130.0Turbine/generator set, 6000 kw 2 3200.0 6400.0 : 6400.0Turbine/generator set, 2000 kw 3 1900.0 5700.0 . 5700.0Turbine/generator set, 1200 kw 2 1200.0 2400.0 : 2400.0Transformer. 10,000 KVA : 2 620.0 1240.0 : 1240.0

Transformer, 6,000 KVA : 1 500.0 500.0 : 500.0

Bridge lifting crane, 50 tons 2 650.0 : 1300.0 1300.0Bridge lifting crane, 15 tons 1 300.0 : 300.0 300.0Valve, D=250 : 4 600.0 : 2400.0 2400.0

Sub-total : 25110.0 4000.0 29110.0

Workshop Machinery & Equipment .: .: : :

General lathe : 3 200.0 600.0 600.0Lathe : 3 300.0 : 900.0 900.0 X

Planning machine : 3 60.0 : 180.0 180.0

Drilling machine : 3 10.0 : 30.0 30.0

Sub-total : : 1710.0 1710.0

Construction MaterialsSteel bars (tons) : 6500.0 2.5 16250.0 : : 16250.0

Cement (tons) 150000.0 0.25 : 37500.0 37500.0Timber (m3) : 2500.0 3 7500.0 7500.0

Sub-total : 16250.0 45000.0 61250.0

Production Materials: . . . . .

Improved Livestock seeds : sum . * 12600.0 12600.0 M a-

Tree saplings : sum : : : 8400.0 8400.0 x C X

Sub-total 21000.0 21000.0

Miscellaneous : sum : : : 5000.00 5000.00 '

TOTAL COST (Y'000) : : 72010.0 50920.0 33000.0 155930.0

(US$ * Y8.4/$) 8572.6 6061.9 3928.6 18563.1

\a: Include prudent shopping on basis of at least three bid quotations and off-shelf purchase.\b: Detailed equipment 1ist and estimated costs in project file.

-82 -ANNEX BTable 3Sheet 3 of 4

GANSU HIMX CORRIDOR PROJECTProDosed Packadng for ICB & NCB Procurement of Goods \a

Package No./Item Description Quantity Amount(YOOO)

Package No. 1(ICB)Vehicles:Self-tipping trucks, 5 tons 10 1500Trucks, 5 tons 10 750Bus, 44 passengers 4 600Mini bus, 22 passengers 3 1110Mini bus, 16 passengers 2 150Field vehicles 17 5185

Sub-total 929S

Package No. 2 (ICB)Plant and machinery:Scrapper, 0.6 m3 7 2380Backhoe excavator, (I m3) 3 1050Excavator, 0.6 m3 (agri. use) 5 1750

Sub-total 5180

Package No. 3 (ICB)Plant and machinery:Bulddozer, 74 kw (irrig. 55, agri. 9) 64 6400Bulldozer, 88 kw 9 1350

Sub-total 7750

Package No. 4 (ICB)Agricultural machinery:Agricultural tractor, 74 kw 33 3300Land leveling machine 33 825

Sub-total 4125

Package No. 5 (ICB)Settlement monitoring equipment sum 1000

Package No. 6 (ICB)VHF Communication Equipment sum 2S00

Package No. 7 (ICB)Irrigation monitoring equipment sum R00

Package No. 8 (ICB)Turbine/generator:6500kW 2 77401250 kW 1 11306000 kW 2 64002000 kW 3 57001200 kW 2 2400

Sub-total 23370

ANNEX B-83- Table 3

Sheet 4 of 4

Package No./Item Description Quantity Amount(Y'000)

Package No. 9 (ICB)Transformer, 10,000 KVA 2 1240Transformer, 6,000 KVA 1 500

Ss- total 1740

Package No. 10 (NCB)Bridge lifting crane, 50 tons 2 1300Bridge lifting crnae, 15 tons 1 300

Ss- total 1600

Package No. 11 (NCB)Valve, D=250 4 2400

Package No. 12 (NCB)Workshop equipment(lathe, planning machine & drilling machine, etc.) 1710

Package No. 13 (ICB)Steel bars (tons) 6500 16250

Package No. 14 (NCB)Cement (tons) 150000 37500

Package No. 15 (NCB)Timber (m3) 2500 7500

Sub-total ICB Packages 72010(S8S.57 million)

Sub-total NCB Packages 49110(S5.85 million)

TOTAL 121120(S14.42 million)

\a: Bid documents for these packages will require prior clearance by the Bank/IDA (Ref SAR para. 3.60).

GANSU HEXI CORRIDOR PROJECTRetro-active Financing Works Effective October 1, 1995

Total Expenditure Estimated DisburseableEstimate for Retroactive Expenditure Amount in *

Cost Financing in US$ US$YmIn Ymin US$ min USS min

I Changma Reservior Temp Works:(a) Electricity supply 43 km of 35 Kv supply line 7.00(b) Microwave communication Yumen Township to site 2.50(c) Road access 16 km from headwork to site 17.00

Sub-total 26.50 18.25 2.17 1.30

11 Branch canals to two pilot sites 9.5 km and 4.9 km forfor new settlers 40 families 6.00 6.00 0.71 0.43 1

coIlIl Irrigation system improvement Trunk canal 21.5 km, main

and upgrading in Huahai Irrig. Area canal 2,7 km and branchcanal 4.5 km 33.00 21.50 2.56 1.54

IV On-farm works at resettlement Earthworks and land leveling 9.80 4.90 0.58 0.35site for 131 families

V. Anxi North Main Canal 29.4 km, 240,000 mu 25.70 12.85 1.53 0.92

TOTAL 101.00 63.50 7.56 4.54

VI. Contingency 0.46

GRAND TOTAL 5.00

* Assumed 60% of expenditures.

- 85 - ANNEX B

Table 5

GANSU HiXI CORRIDOR PROJECTimasted Disbursement Sch-dul- and Profile

IBRD/IDA Estimated Disbursement Disbursement Profile /aFiscal Year ------- -----------------------and Semester Semestral Cumulative Percentage Year/ Cumulative

---- (US$ million)-- (%) Semester (%)

FY 1996 Board Approval Expected May, 1996

FY 1997 Year 1Jul-Dec 96\b 7.5 7.5 5 1st 0Jan-Jun 97 7.5 15.0 10 2nd 30

FY 1998 Year 2Jul-Dec 97 7.5 22.5 15 1st 38Jan-Jun 98 7.5 30.0 20 2nd 46





FY 2003 Year 7Jul-Dec 02 7.5 120.0 80 1st 100Jan-Jun 03 5.0 125.0 83 2nd

FY 2004 Year 8Jul-Dec 03 5.0 130.0 87 1stJan-Jun 04 5.0 135.0 90 2nd

FY 2005Jul-Dec 04 5.0 140.0 93Jan-Jun 05 5.0 145.0 97

FY 2006Jul-Dec 05 2.5 147.5 98Jan-Jun 06 2.5 150.0 100

FY 2007Jul-Dec 06 Close on 12/31/06Jan-Jun 07

Board Approval Date: Expected May 1996Completion date: June 30, 2006Closing date: December 31, 2006

/a: Disbursement profile for agricultural sector in China compiled by OPRPG,June 30, 1995.

/b: Including US$5.0 mln. retroactive financing effective from October 1, 1995to signing of the Loan and Credit Agreements.


Tralnina and Studv Tours

ItemnDescrioin Unit Total - Planned investments by Year > TotalInvestment 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1996-05

_ _ _ _ _ _ (YOOO)A. TRAINING1. Traiiing of migrant farmers (por-sos)(a) Irration techniques 500 250.0 40.0 35.0 35.0 35.0 35.0 35.0 35.0 250.0(b) Crop cultbation 241435 5255.0 164.8 582.3 825.0 803.7 904.5 906.9 1067.8 5255.0(c) Fruit bes culbivation 25510 2054.0 164.2 149.3 119.3 119.3 1343.3 49.3 109.3 2054.0(d) LivstDck prodwtion 57000 1684.0 384.0 252.0 364.0 352.0 352.0 1684.0

Sub-total for Migant Farmers 324445 9243.0 733.0 1018.6 1343.3 1310.0 2634.8 991.2 1212.1 9243.0

2. Traning f Project Mgmt Staff 4117.9 2042.0 1304.0 43.3 48.0 53.1 61.6 82.9 388.0 61.5 33.5 4117.9and units above county level

Sub-toWtl ftr TRAINING (A) 13380.9 275.0 2322.6 1386.6 1358.0 2087.9 1052.8 1295.0 388.0 81.5 33.5 13380.9

B. STUDY TOURS1. Overseas Study Tours(a) Advanced agri. technoogy 10 400.0 200.0 200.0 400.0 t o(b) Forestry and forae maWng 5 200.0 200.0 200.0 a%(c) Sod salinity and inproveement 10 400.0 200.0 200.0 . 400.0(d) Environ. protction & rngm' 12 480.0 240.0 240.0 _ 480.0(e) Emigration and settement 15 600.0 200.0 200.0 200.0 ;600.0(f) Emigration and settleent 10 400.0 200.0 200.0 400.0

Sub-tobl 62 2480.0 640.0 600.0 840.0 400.0 0.0 2480.0

2. Local Study Tours (= ___ =__o __n s_=_(a) Water resources devebpment _

(b) Agrita development .(c) Animal husbandry dev.(d) Forestry developmont _

Sub-total 1 _ 165.0 2000 2400 2300 2500C 2450 - i 1

Sub-total Study Tours (B) 3U5.0 840.0 840.0 1070.0 650.0 245.0 3US.0

TOTAL 17005.9 3615.0 3162.6 2456.6 2008.0 2932.9 1052.8 1295.0 388.0 61.5 33.5 17005.9


Consuldna Services and Research

IterrmDescription Unit Total ----- Planned investments by Year--------> TotalInvestment 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1996-05

(Y-000) (Yaoo) (Yo000) ('rooo) (Yo000) ('POOO) (Y'OOO) (Y.000) (Y-000) (Yo000) (Y'OOO) (Yo000)A. CONSULTANT SERVICES1. Foreian Consultants (man-months)(a) Irrig. niotrkng systern 350.0 50.0 500. 50.0 50.0 50.0 50.o 50.0 350.0(b) Shuangra reserv. monitoring 200.0 200.0 200.0(c) Environ. mnonitoring systemr 300.5 3005 300.5

Sub-total 850.5 50.0 2500. 350.5 50.0 500 500 500 s 850.5

2. Producton Studbis by ResearchInstitutons & universWes (persons)

(a) Fruit and orchard development 50.0 10.0 10.0 100. 10.0 10.0 50.0(b) Livestock breod variety 22.5 12.0 10.5 22.5(c) Cropprotection & cultivation 40.0 10.0 10.0 10.0 10.0 40.0(d) Environ. monioring & evakua 196.0 96.0 100.0 196.0(e) Forestry dev. & mgml 15 67.1 33.5 33.6 67.1(f Livestock dev. & mgrn't 16 54.0 27.0 27:0 54.0 -

(g) Agri. crop dev. & ngmt 300 275.0 25.0 500. 50.0 50.0 500. 50.0 275.0

Sub-total = 704.6 213.5 170.0 97.0 70.0 104.1 50.0 0.0 704.6

3. Enainoeeina Suoervision (man-mnonth)(a) Changma dam 36^ 2671.2 621.6 777.0 806.4 466.2 2671.2(b) Dam safety panel 8 369.6 92.4 92.4 92.4 92.4 369.6(b) Contac adnministration 16 1243.2 310.8 310.8 310.8 310.8 _ 1243.2(c) Ectrro-inech. instabtion 4 53.8 53.8 53.8(d) Meta fabr. component insta. 8 57.1 57.1 57.1

Sub-total 72 4394.9 1024.8 1180.2 1320.5 869.4 4394.9

Sub-total Consultant Servics (A) 5950.0 1288.3 1600.2 17U.0 989.4 154.1 100.0 50.0 5950.0

Dam foundation - 4 man-monthsEmbankment - 28 man-monthsTwunel - 4 man-m-onths _

C l-91r

lterDescription Unit Total <- ------------------------------------------ Planned investentis by Year-- -------------- --------------------------> TotalInvestnent 1996C 197 197 98 19999 2000 2001 2002 2003 2004 2005 1996-05

(YWO) (y 060) (Y'00O) (Y'0OO) (Y'000) (Y'00) (Y'OOO) (Yc00) (Y'000) (Y'000) (Y000) (YW0)

B. RESEARCH 1. Research & experirments I . _(a) Salizied land improvement 1500.0 300C0 _ 300.0 300.0 300.0 3000 ( 15000(b) lrrig. water saving techniques 600.0 60.0 60.0 60.0 60.0 60.0 60.0 60.0 60.0 60 0 60.0 600.0(c) Shuangta Reserv. salinity _ 600.0 300.0 150 0 150.0 . _ 600.0(d) Crop variety and breedin 670.0 100.0 200.0 100.0 100 0 1100 70.0 . 670.0(ea) mp;roved livestock breeding 400.0 200.0 100.0 50.0 50.0 400.0(Q Agro-forestry and windbreaks _ 300.01 100.0 100.0 50.0 50.0 . 300 0

Sub-total 4070.0 760.0 1010.0 810.0 560.0 560.0 130.0 60.0 60.0 60.0 60.0 4070.0

2. Suppoting Eqipmt(a) Atomic absorption photfomtr 350.0 350.0 _ 350.0(b) N.P.K analyftcal eqip. . 35.0t 35.0 35.0(c) Irig. water quality analy. equip 30.0 30.0 _ _ 30.0(d) Crop protecion equip. 45.0t 45.0 __45.0 X(a) Laboratory araly. equ. 120.0 80.0 40.0 C _ 120.0(fl Crop quaity tsting equip. 60.0 60.0 _ 60.0(g) Computer hardlsoftware 35.0 35.0 350

Sub-totl 675.0 530.0 145.0 . . . 675.0

Sub-total tI" Reaerch (B) 4745.01 1290.0 1155.0 810.0 560.0 560.0 130.0 60.0 60.0 60.0. 80.0 4745.0

09 25. 7. 2 0 144 . 200 ._ _

.~~~~~~~~~~~~~~~~~~~~~~ .

rt mDO

- 89 -ANNEX BTable 8

GANSU HEXI CORRIDOR PROJECTTypical Agricultural Machinery & Equipment Composition

for a TownshiD Aaricultural Service Station

Item/Description Quantity Unit Cost Value Technical Specifications(Y'000) (Y'000)

Tractor with trailer 3 70 210.0

Bulldozer, medium-size 4 100 400.0 55 hp.

Scraper 1 45 45.0

Land leveler 1 20 20.0

Plow 4 10 40.0

Harrow 2 9 18.0

Sowing machine 3 8 24.0

Workshop repair equipment set 10 10.0

TOTAL 767.0

Note: The above machinery will serve about 2,670 ha (40,000 mu)Each station will have a building of 300 sq. m.

- 90 - ANNEX BTable 9

GANSU HEXI CORRIDOR PROJECTEstimated Coats for Aar. Support Services

Item/Description Unit Unit cost Quantity Amount Subtotal(Yuan) (Yuan) (Yuan)

Yumen Citv extension centertraining facilities sq.m. 600 510 306,000training equipment set 1 50,000 1 50,000field vehicles item 100,000 1 100,000soil lab. upgrading set 2 100,000 1 100,000 556,000

Anxi Countvextension centertraining facilities sq.m. 600 1,000 600,000training equipment set 1 50,000 1 50,000field vehicles item 100,000 1 100,000soil lab. upgrading set 2 100,000 1 100,000 850,000

State farms extensionsoil lab. upgrading item 100,000 1 100,000 100,000

Township new extension center11 training facilities sq.m. 500 3,700 1,850,000equipment set 3 20,000 11 220,000 2,070,000

Applied Researchprograms item 200,000 5 1,000,000field vehicles item 100,000 1 100,000field office sq.m. 500 200 100,000 1,200,000

Yumen seed productionstorage sq.m. 500 500 250,000drying floor sq.m. 60 500 30,000seed testing equip. set 40,000 2 80,000grader (county) item 15,000 2 30,000treatment (county, t'ship) item 25,000 4 100,000 490,000

Anxi seed productionstorage sq.m. S00 1,500 750,000drying floor sq.m. 60 1,500 90,000seed testing equip. set 40,000 1 40,000seed grader (county) item 15,000 4 60,000treatment (county, t'ship) item 25,000 12 300,000 1,240,000

State farm seed vroductionstorage sq.m. 500 1,000 500,000drying floor sq.m. - 60 1,000 60,000seed testing equip. set 40,000 0 0seed grader (county) item 15,000 0 0seed treatment (subfarm) item 25,000 5 125,000 685,000

Township/branch farm machinery stationbulldozer, medium-size item 100,000 64 6,400,000scraper item 45,000 16 720,000land leveler item 20,000 16 320,00055 HP tractor + trailer item 70,000 48 3,360,000plow item 10,000 64 640,000harrow item 9,000 32 288,000sowing machine item 8,000 48 384,000building sq.m. 250 4,800 1,200,0004 diesel oil stations sq.m. 250 800 200,000workshop equipment set 10,000 16 160,000 13,672,000

TOTAL BASE COST 20,863,000


Estiamted Costs and Annual Investment for Livestock Component

Item/Descripton EstimatedCosts 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Total

(Y'000) 1996-05

1. Improvement & Develooment of Extension Network(a) Yumen City Center 688 172 344 172 688

(b) Anxi County center 688 172 344 172 688(c) 16NewTownshipStations 1169 133 132 110 280 257 257 1169

Sub-total 2545 344 688 477 132 110 0 0 280 257 257 2545

1. Production & Supply of Improved Livestock

(a) YumenCityparentlayerfarmexpansion 662 166 331 165 662(b) Anxi County brolier production farm expansion 646 161 323 162 646(c) Establish/upgradeegg hatchery in 33 townships 2026 506 1000 520 2026(d) Yumen City lean boar production farm development 138 38 100 138(e) Anxi County lean boar production farm development 138 38 100 138(f) Lean sow production farm in 16 township and

supply pigs to 33 townships 1790 140 140 130 460 460 460 1790

Sub-total 5400 909 1854 987 140 130 0 0 460 460 460 5400

III. Fodder Production and Feed Processine(a) Establish feed/fodderprocessingin33 townships 1562 150 150 142 380 370 370 1562(b) Pasture seed (lucerne) credit for farmers 1600 200 200 200 200 200 200 200 200 1600(c) Pasture seed production fanns 1000 330 340 330 1000(d) Grasslans fencing for rehab./protection 1000 200 200 200 200 200 1000(e) Water points (tubewells) to improve graasland utilz. 1000 100 100 100 100 100 100 100 100 100 100 1000

Sub-total 6162 300 300 980 990 972 300 300 680 670 670 6162

IV. Livestock Credit Fund for Specialized Households

(a) Creidtforprocurementofimprovedlivestock 5513 0 0 0 0 1100 1100 1100 750 750 713 5513

Sub-total 5513 0 0 0 0 1100 1100 1100 750 750 713 5513

TOTAL LIVESTOCK COMPONENT 19620 1553 2842 2444 1262 2312 1400 1400 2170 2137 2100 19620 w t Z

rttD >C

Other Items Included in Other Components 0(a) Tech. consultation and guidance at provincial level 604 201 201 202 604(b) Stafftraining at all levels 2616 270 500 500 500 400 446 2616(c) Livestock subsidy for new scttIcrs (rcvolving fund) 3364 264 300 350 350 350 350 350 350 350 350 3364

Total 6584 735 1001 1052 850 750 796 350 350 350 350 6584

GANSU HEXI CORRIDOR PROJECTLivestock Proiect Investments at Count Centers and Townshio/Sub-farm Stations

Center/Station Irrigation Upgrade New Staff Farmer Lean Boar Lean Sow Layer Broiler Chicks Cattle Compound Credit forArea Extension Extension Training Training Breeding breeding Breeding Breeding hatchery Al. Station Feed SpecializedLocation Station Station Farm farm Farm Farm processing Households

YUMEN CITY __ __Yumen City Center _ X __ _ X _- X ___X___ ______ X

Existing Station ____ _____ ____

Hushai Huahai _ X K K K xHuangzhawan Changma _ K K K K K xLiuhe Changma _ K X K XXiaxbao Changma X K K K K K KYuman Changma _ X K K K K KHuanghua Farm Changma _ __ X X X K X K XYinma Farm Changma X X X X X X X

New StationsBaijiatan Huahai X X K K K K K KBeishihe Changma X X K _ K K K KKuantan Huahai X _ X X K K K KBanton Sub-farm Changma X X X X K X _ XDapeshan Sub-farm Changma X X X X X X X XDushazi Sub-farm Huh.i X X X = x X X- X

ANXI COUNTYAnxi County center X K X X_X

Exdsting StatonsBiongqi Changma K K K K K K KGuazhou Shua X K K _ K K KHedong Changma X K K K K K KHuangchen Shuangta X X K X X X XNancha Shuangta X X X X X X XCimozi Changma X X X X X X XSandaguo Changm3a X X X X X X XXihu Shuangta X X X X X X XXiaowang Sub-farm Shuangta X K K K K K KXihu Farm Shuangta X K K K K K K

Now Stations = K X X K K X Xvcn-

Baiqibmo Shuangta X X X K X X XBadaoguo Changma X X K X K X K X XTuduntan Changm_a X X X X X K K KTuhulu Changma X X K X _ KXK X tWangjiacao Changma X X X X X X K C Wujiazhuang Shuangta X X X X X X X XXianyang _Shuangta X X X X X X X XYanbehu Shu ngb X X X X X X X XZahus Chargma X X X X X X X XUanghu Sub-farm Shuangt X K K K K K K

93 - ANNEX BTable 11Sheet 1

GANSU III CORRIOR PROJECTFINANCING PLAN

Item No. Source of Funding Amnt(lMmillion)

Local Counterpart Funds:

1 Capital Consruction Funds, Minishy of Water Resources 100.0

2 Sta Planning Commission 100.0

3 Gan Burea of Wat Resources 73.0

4 Gansu Prvinca Plaig Commision (Capital Construction) 297.8

5 Gansu Bureau of Finance (Development Funds) 200.1

6 Gansu Two Xi Commision 296.1

7 Gansu Poverty Reduction & Development Office 242.0

& Gansu Minning Enterprise 64.0

9 Labor Contnbuion from Project Beneficanes 64.6

SubAotal 1437.6

BankIDA Fundlnr.

10 US$150 million @ Y8.40/USS 1260.0

TOTAL LOCAL + BANK/IDA 2697.6

CHINAOANSU HEXI CORPIDOR PROJECT

Local Funding by Annual khvestnt Amounut, Projed ReIms and Source

IbnVFundkng 'c - A n e InvstmmV Amounts (Ymln.) > ToalSouwe 1966 1697 196 1969 2000 2001 2002 2003 2005 2005

1. Chanama DamMWR 16.72 23.46 20.82 26.06 12.52 0.20 0.20 O.00 0.00 0.00 1w.00SPC 7.06 9.93 8.81 11.04 5.30 0.09 0.08 0.00 0.00 0.00 42.33

SPC 2.13 6.74 1.16 06 01 0.00 0.00 0.00 0.00 0.00 11.76

S. Chm kTl AmrrGTXIC 7.34 7.41 9.08 11.87 13.07 13.41 14.43 6.37 3.86 3.16 90.00SPC 3.74 3.78 4.62 6.06 6.67 6.84 7.36 3.25 1.6 1.61 45.91GBWR 4.40 4.45 5.44 7.12 7.84 6.04 6.e6 3.82 2.33 1.90 54.00GPPC 15.55 15.69 19.20 25.14 27.68 28.39 30.56 13.49 6.21 6.70 190.61GPADO 6.52 6.56 8.06 10.55 11.62 11.92 12.83 5.66 3.45 2.61 8o.0GME 5.22 5.27 6.45 8.44 9.29 9.53 10.26 4.53 2.76 2.25 64.00CONT. LABOR 2.63 2.65 3.24 4.25 4.68 4.80 5.17 2.26 1.39 1.13 32.22

s&t4ad 4140 4&83 W6.07 73.43 .e86 62.93 89.27 39.40 24.00 19561 S5674

4. Shuwuat krL AreaGPPC 4.74 5.42 6.33 6.73 7.40 9.25 9.52 5.M 25 2.49 6o.00GBWR 1.19 1.36 1.56 1.66 1.5 2.31 2.36 1.39 0.64 0.62 15.00GBOF 4.40 5.04 5.88 6.25 6.88 8.60 8.85 5.16 2.37 2.31 55.74GTXIC 0.71 0.81 0.95 1.01 1.11 1.39 1.43 0.63 0.30 0.37 9.00GPADO 0.55 0.63 0.74 0.79 0.86 1.06 1.11 0.65 0.30 029 7.00COEIT. LABOR 2.03 2.32 2.71 2.67 3.17 3.95 4.05 2.37 1.09 1.06 25.65

sa*li 13.62 1158 18.19 19.33 21.27 26.58 27.37 1.96 7.35 7.14 172.39

L. Hual hTkL AreaG8WR 0.59 0.62 0.43 0.57 0.56 0.43 0.27 029 0.18 0.06 4.00GPPC 4.45 4.63 3.27 4.26 4.23 3.21 2.05 2.15 127 0.46 30.00GOOF 2.35 2.45 1.73 226 2.24 1.69 1.06 1.14 0.67 0.24 15.65GTXIC 0.74 0.77 0.55 0.71 0.71 o53 0.34 0.36 021 0.08 5.00GPADO 0.43 0.45 0.32 0.42 0.41 0.31 020 022 0.12 0.05 2.93CONT. LABOR 0.99 1.04 0.73 0.96 0.94 0.72 0.46 0.48 029 0.10 6.71

SubAw 9.s55 9.96 7.03 9.20 9.09 6.89 4.40 4.64 1.74 0.9n 64.49

X4ead (1) b(s) 87.42 101.57 10127 12680 12464 116.00 121.24 800 305 27n. 11417.71

6. MonIi_i & Modelfln toGPPC 0.18 0.09 0.05 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.34

7. Ahkxlk 3.3.

GPPC 0.67 3.74 3.54 0.31 O0 0.05 0.05 0.06 0.06 0.06 9.s2

G. .2.02c01 Day7GOOF 0.72 0.n2 0ou 0.57 1.03 o.eo o.e4 1.25 12Z9 1.37 e.73

*snVFunding A ' Irn n,u n Amonu (Ymniln.) > TOeWScum 1996 1997 1996 1969 2000 2001 2002 2003 2005 2005

GPPC 0.60 0.59 0.44 0.47 0.85 0.50 0.53 1.03 1.07 1.14 4 722

*. AtIInwdGOOF 2J 2.91 2.1 2.80 3.11 3.92 2.46 2.05 1J4 1.14 25.95

GBOYF 3.96 3.42 339 3.72 4.37 3.93 3.76 3.31 3.45 3.a5 37.16

11.,GTXIC 5.16 9.70 13.91 15.25 20.22 21.98 34.9 27.41 28J9 15.01 192.12GPADO 4.08 7.e8 11.01 12.07 16.00 17.40 27.36 21.70 22.87 1118 152.07

sub-tow 9.24 17.36 24.92 27.32 36.22 39.38 61.97 49.11 51.7 26.89 344.19

12. kiulhion Dev.GOOF 10.74 9.18 7.03 4.57 4.24 3.83 4.14 4.2 4.24 4.46 56.65

Sub4oW (0 so (12) 26.72 37.44 42.38 3a.31 49.65 5.71 73.04 59.9 62.44 7.79 45L9W

TOTAL (1 lo (12) $16.14 139.01 145.65 168.17 174.49 16U.31 194.28 119."9 ff.63 65A4S 1437.6M

faEMrnx of AVY^SS InvedbTst bwScumn

MWR 16.72 23.46 20.82 26.06 12.52 0.20 0.20 0.00 0.00 0.00 100.00SPC 12.95 20.45 14.59 17.92 12.86 6.83 7.44 3.25 119 1.61 100.00GBWR 6.18 6.43 7.45 9.37 1025 10.78 11.31 5.50 3.15 25 73.00M1GPPC 26.39 30.16 32.83 36.95 41.04 41.40 42.71 2229 13.17 10.85 297.79GeoF 25.18 23.72 21.4S 20.17 21.87 22.57 20.95 17.12 13.68 13.39 200.11GTXIC 13.95 18.69 24.47 28.J4 35.11 37.31 50.79 34.97 3337 18.62 296.12GPRDO 1156 15.34 20.13 23.83 26.89 30.71 41.52 28.23 26.74 15.03 242.00GME 5.22 5.27 6.45 8.44 9.29 9.53 1026 45S 2.76 2.25 64.00CONT. LABOR 5.65 6.01 6.6S 8.08 8.79 9.47 9.71 5.13 2.77 229 64.5

Toeb 123.82 149.653 154.90 179.68 16.64 168.90 134.8 121.62 37.6 66.62 143T76

MWR Mirily of dWuer ResuresSPC Stli Pliig Conwnbnss-GPPC Guis Pvudcl Pioming Comm*issiotCOOF Gmu Bursau of Fh D a,

GBWR Gsnu Bureu of Web ResourresGTXIC G.tu Tw Xi Conmwisio GPRDO Guw Pwwty Rudlan & Dw p Ollbo ,GME Germu Lmig EnbrpiuCONT. LABOR C _**Sd Lm.

- 96 -


ANNEX C

Financial and Economic Analyses

- 97 -ANNEX C

Table 1ChinaGansu Hex! Corridor ProjectFINANCIAL PRICES(In Yuan) Unit 1996

Unit 1995 Layer Egg Chicks unit 1.6Outputs Other aninal products

Food crops Animal traction day 8Wheat kg 1.6 Breeding Pig - m head 1,500Wheat-r kg 1.6-2 Breeding Pig- f head 1,200Malze kg 1.2 Sheep (one year) head 230Maize-r kg 1.2-1.4 Piglet head 55Barley kg 1.4 Calf head 1,500Potato-r kg 0.4-0.6 Inputs

Conwrnercial crops Seeds and SeedlingsFaba Bean kg 2 Wheat seed kg 1.7-2Faba Bean-r kg 1.6-2 Maize seed kg 2Cotton kg 12 Barley Seed kg 1.8Melon kg 1 Potato seed-r kg 0.4-0.8Melon Seeds kg 12 Faba Bean seed kg 1.6-2.5Vegetable kg 1 Cotton Seed kg 3Beet kg 0.3 Melon Seed kg 20Hemp kg 3.6 Vegetable Seed kg 20Hemp-r kg 2.6-3 BeetSeed kg 20Hops kg 13 Hemp Seed kg 3-5Licorice kg 3 Licorice Seed kg 7-18Herb kg 6-7 Nursery Seed kg 60

Fodder and forage Alfalfa seed kg 10Wheat straw kg 0.2 Poplar seedling unit 0.3Wheat straw-r kg 0.06 Apple seedlings unit 0.5Interplant Straw kg 0.15 Pear Seedling unit 0.5Maize stover kg 0.1 Tamarix Seedling unit 0.05Barley stover kg 0.2 Fertilizers and pesticidePotato Straw-r kg 0.4-0.6 Urea kg 1.1-2Bean straw kg 0.15 Phosphate kg 0.42Bean straw-r kg 0.15 Manure ton 15Cotton Straw kg 1.4 Fertilizer for Alfalfa ton 400Hemp Straw kg 0.15 Other inputsHemp Straw-r kg 0.15-0.2 Plastic mulch kg 8Alfalfa hay kg 0.3 Water-new irrigation system m3 0.08Alfalfa Seed kg 10 Water m3 0.03Alfalfa grazing kg 0.3 Electricity Kwh 0.21

Forest products Diesel kg 2Fuel Forest Cuttings kg 0.1 Animal Traction day 15Poplar poles unit 5.5 Animal Traction-r day 4-5Poplar Timber m3 200 Forage kg 0.3Poplar Fuel kg 0.15 Feed kg 1.6Fuel Wood (Tamarix) kg 0.15 Young animnalsApple kg 1.5 Piglet head 55Pear kg 1.5 Calf head 1,500Nursery Seedling unit 0.5 Breeding Pig (lean pork)-m head 1,500

Uvestock Products Breeding Pig (lean pork)-f head 1,500Breeding Pig-m head 1,200

Egg (egg chicks) unit 1 Breeding Pig-f head 1,200Commercial Egg kg 8 Chicks unit 1.5Layer Meat Chicks unit 2 Commercial Chicks unit 1.2Pork-r kg 8.2 LaborMutton kg 16 Skilled labor day 8Beef-r kg 14-15 Unskilled labor day 5.67Chicken kg 12 Unskilled Labor-a day 7Egg (meat chicks) unit 1.3 Skilled Labor-a day 9

Note: Labor-r day 3-5r: Suffixes denote commodity price for out-migration area. a: Suffixes denote commodity price for livestock production.

- 98 -ANNEX CTable 2

CHINA: Gansu Hexi Corridor ProjectFarm Gate Prices for Traded Inputs and Outputs a/(1995 Constant Prices)

Corn Wheat Soybean Cotton Poultry Pork UreaNetTrade Status M M X X X X M

1995 pricesWorld Market Prices 109 197 260 1728 1232 1276 143Ocean Freight:(US$/t) 20 20 20 60 70 50 34CIF/FOB Price Port (US$/t) 129 217 240 1,668 1,162 1,226 177CIF/FOB Price Port (Yuan/t)-b 1,088 1,827 2,016 14,010 9,761 10,298 1,485Port Charges and

Distributors' Margin-g 60 60 60 63 60 100 93Transport - Port to Wholesalers-c 95 95 95 103 103 103 103

- Mill to Wholesalers-d 44 44 44 44 44 44 44Ex Factory Price 1,286 2,025 1,818 13,800 9,554 10,052 1,724Processing Adjustment 0 0 0 0 0 0 0Processing Cost 0 0 0 0 0 0 0By-Product Values 0 0 0 0 0 0 0Mill Gate Value 1,286 2,025 1,818 13,800 9,554 10,052 1,724Transport - Farm to Mill-e 8 8 8 8 8 8 8

Economic Farmgate 1,294 2,033 1,810 13,792 9,546 10,044 1,732Farmgate Prices-f 1,200 1,600 2,000 12,000 10,000 12,500 1,430CF 1.08 1.27 0.90 1.15 0.95 0.80 1.21

2005 PricesWorld Market Prices 125.21 200.88 339.85 1995.06 1375.90 4199.25 192.63Ocean Freight:(US$/t) 20 20 20 60 55 50 34CIF/FOB Price Port (US$/t) 145 221 320 1,935 1,321 4,149 227CIF/FOB Price Port (Yuan/t)-b 1,220 1,855 2,687 16,254 11,096 34,854 1,904Port Charges and

Distributors' Margin-g 60 60 60 63 60 100 93Transport - Port to Wholesalers-c 95 95 95 103 103 103 103

- Mill to Wholesalers-d 44 44 44 44 44 44 44Ex Factory Price 948 1,546 2,488 16,045 10,889 34,607 1,550Processing Adjustment 0 0 0 0 0 0 0Processing Cost 0 0 0 0 0 0 0By-Product Values 0 0 0 0 0 0 0Mill Gate Value 948 1,546 2,488 16,045 10,889 34,607 1,550Transport - Farm to Mill-e 8 8 8 8 8 8 8

Economic Farmgate 940 1,538 2,480 16,036 10,881 34,599 1,542Farmgate Prices-f 1,300 1,627 2,000 10,000 10,000 13,000 1,823CF 0.72 0.95 1.24 1.60 1.09 2.66 0.85

a/ Based on WB Commodity Price Forecasts, October 14, 1994, adjusted to 1995 constant price.b/ Exchange Rate: Y 8.4 = US$1c/ 'Distance from port to wholesaler 1770 km From Lianyun to Lanzhou by rail at Y .0535/ton/km adjusted by 1.07 CF.d/ Distance from mill to wholesaler: 850 km form Lanzhou to Yumen by rail at Y11/ton/km adjusted by CF of 1.07e/ 'Distance from farm to mill: 20 km from Yumen to project field on average by road at Y.42/t/km, adjusted by CF of .96f/ Based on local market price in Hexi Corridor in 1995

- 99 -

CHINA ANNEX COansu Hee Cetkbe Pnbl (Ana. Yid nd Table 3(a)

krbution and D,dinae ConwenentpF-ent Fu20 Deveonen Inaresnnt

Camnpont I Crpes Arm Y Ar Y0d Od Avm YiWd Ctpw11000 ha) I sm0 ) (1000 fan) (1000 ha) I taaj) (1000 ton I 11000 ha) (Iniha) (1000 fwn)

Chann Exledng hrigmien AnaWheat 3.51 5.10 17.90 10.37 6.90 71.55 6.86 1.80 53.65Maize 0.27 7.00 1.89 0.79 10.20 8.06 0.52 3.20 6.17Barley 0.87 4.00 3.48 2.55 7.05 17.98 1.68 3.05 14.50Been 0.59 4.00 2.36 1.75 5.70 9.98 1.16 1.70 7.62Melon 0.06 31.00 1.80 0.18 40.50 8.37 0.12 15.50 6.51Melon seeKb 0.20 1.30 0.26 0.56 1.87 1.05 0.30 0.57 0.79Vegetable 0.09 23.00 2.07 0.28 37.50 10.50 0.19 14.50 8.43Beet 0.26 34.00 8.84 0.78 46.50 36.27 0.52 12.50 27.43Hemp 0.70 1.30 0.91 2.07 2.25 4.66 1.37 0.95 3.75Hope 0.20 3.00 0.00 0.58 4.50 2.61 0.38 1.50 2.01Subtotal a.76 5.96 40.17 19.91 8.59 171.02 13.16 2.64 130.84

Chanpr- New krqgrln AmeaWheat 13.44 5.40 72.58 13.44 5.40 72.58

Maize 0.98 7.95 7.79 0.98 7.96 7.79Barley 3.13 5.78 18.09 3.13 5.78 18.09Been 2.15 4.20 9.03 2.15 4.20 9.03Melon 0.22 36.00 7.92 0.22 36.00 7.92Melon seecd 0.69 1.42 0.98 0.69 1.42 0.98Veetable 0.34 31.50 10.71 0.34 31.50 10.71Beet 0.95 39.00 37.05 0.95 39.00 37.05Hemp 2.54 1.65 4.19 2.54 1.065 4.19Subtotal 24.44 6.89 168.34 24.44 6.89 168.34

TotiChangmangiadonnAm 6.75 5.96 40.17 44.36 7.06 72.58 37.60 7.90 299.18

Shuanqt Euiedng bwlgarion AmeWhest 0.96 4.70 4.51 5.43 6.60 35.84 4.47 1.90 31.33Maize 0.13 7.60 0.99 0.75 10.80 8.10 0.62 3.20 7.11Bodey 0.05 4.60 0.23 0.29 6.75 1.96 0.24 2.15 1.73Cotton 0.51 1.08 0.55 2.87 1.65 4.74 2.36 0.67 31.22Melon 0.09 36.26 3.17 0.48 60.25 24.12 0.39 15.00 20.95MeWon Seod 0.04 1.30 0.05 0.22 1.60 0.40 0.18 0.50 0.34Vegentble 0.05 24.00 1.20 0.28 37.b0 10.50 0.23 13.50 9.30Hemp 0.09 0.90 0.08 0.60 2.18 1.09 0.41 1.28 1.01Hope 0.02 3.30 0.07 0.12 4.50 0.54 0.10 1.20 0.47Subtotal 1.94 6.59 10.85 10.94 7.98 87.28 9.00 2.38 76.42

Shuangta NHw kliewen AmWhet 6.23 5.10 31.77 6.23 5.10 31.77FJize 0.83 8.25 0.85 0.83 8.25 6.85Badey 0.32 5.40 1.73 0.32 5.40 1.73Cotton 3.21 1.28 4.11 3.21 1.28 4.11Melon 0.54 37.50 20.25 0.54 37.50 20.25Melon Seed 0.24 1.42 0.34 0.24 1.42 0.34Vegetable 0.32 32.25 10.32 0.32 32.26 10.32Hemp 0.56 1.50 0.84 0.56 1.50 0.84Subtotal 12.25 6.22 76.21 12.25 6.22 76.21

Total shuanta blgemn Av 1.94 5.59 10.86 23.19 7.05 163.49 21.25 1.46 162.63

Hualu Ebiddng higeslon AmaVWeat 1.14 4.80 5.47 1.66 6.75 11.21 0.52 1.95 5.73Maize 0.17 7.60 1.29 0.26 10.50 2.63 0.08 2.90 1.33Cotton 0.25 0.73 0.18 0.36 1.50 0.54 0.11 0.77 0.36Mlbon 0.03 31.00 0.93 0.04 40.50 1.86 0.01 15.50 0.93Melon Seed 0.14 1.30 0.19 0.21 1.80 0.38 0.07 0.50 0.20Vgotable 0.05 16.00 0.80 0.07 37.50 2.83 0.02 21.50 1.83Hemp 0.10 1.20 0.12 0.16 2.18 0.33 0.05 0.98 0.21Subtotal 1.88 4.78 8.98 2.74 7.14 19.66 0.86 2.30 10.58

Huai New healon ArmWhVlt 3.25 5.25 17.06 3.26 5.25 17.00Maize 0.49 8.10 3.97 0.49 8.10 3.97Cotton 0.70 1.22 0.85 0.70 1.22 0.86Mlion 0.09 3a.76 3.31 0.09 36.76 3.31Mieon Seed 0.41 1.42 0.58 0.41 1.42 0.58Vegetble 0.14 31.50 4.41 0.14 31.50 4.41Hemp 0.29 1.50 0.44 0.29 1.50 0.44Subtotal 5.37 5.70 30.62 6.37 5.70 30.62

Tot Hua lrdgmmonAro 1.88 4.78 8.98 8.11 6.19 50.18 6.23 1.41 41.20Tot W. & DrWin. Coponenrt 10.57 5.68 60.00 75.06 7.16 541.54 06.08 0.64 493.02

- 100 -

ANNEX CTable 3(b)

GANSU BESI CORRIDOR PROJECT

Projection of yields in the new area ( Based on 8 years )(ton/ha)

Cropping year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

CHANGMA

Wheat 2.18 2.72 3.26 3.80 4.32 4.86 5.40

Barley 2.25 2.84 3.42 4.02 4.60 5.19 5.78

Corn 2.70 3.57 4.46 5.36 6.20 7.08 7.95

Faba bean 1.65 2.07 2.50 2.92 3.34 3.70 4.20

Cotton

Linseed 0.75 9.00 1.05 1.20 1.35 1.50 1.65

Sugarbeet 17.25 20.88 24.50 28.12 31.76 35.37 39.00

Melonseed 0.75 0.87 0.98 1.10 1.20 1.32 1.42

Melon 13.50 17.25 21.00 24.75 28.50 32.25 36.00

Vegetable 13.50 16.50 19.50 22.50 25.50 28.50 31.50

Hop

SHUANGTA

Wheat 2.02 2.54 3.04 3.52 4.08 4.59 5.10

Barley 2.10 2.66 3.20 3.75 4.30 4.84 5.40

Corn 3.00 3.87 4.76 5.62 6.50 7.38 8.25

Faba bean

Cotton 0.68 0.78 0.88 0.99 1.08 1.19 1.28

Linseed 0.68 0.81 0.94 1.10 1.24 1.36 1.50

Cotton

Melonseed 0.68 0.80 0.93 1.05 1.17 1.30 1.42

Melon 15.00 18.75 22.50 26.25 30.00 33.75 37.50

Vegetable 14.25 17.25 20.25 23.25 26.25 29.25 32.25

HUAHAI

Wheat 2.10 2.62 3.15 3.68 4.20 4.72 5.25

Barley

Corn 2.85 3.72 4.60 5.48 6.34 7.23 8.10

Faba bean

Cotton 0.61 0.72 0.81 0.92 1.01 1.12 1.22

Linseed 0.75 0.87 1.00 1.12 1.24 1.38 1.50

Sugarbeet

Melonseed 0.68 0.80 0.93 1.05 1.17 1.30 1.42

Melon 14.25 18.00 21.75 25.50 29.25 33.00 36.75

Vegetable 13.50 16.50 19.50 22.50 25.50 28.50 31.50

Hop

Note:

No output at the first year due to the treatment of the salinized soil


Proiection of Yields in the New Area ( Based on 10 years )

(unit: ton/ha)

cropping year Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

CHANGMA

Wheat 1.80 2.18 2.72 3.26 3.60 3.80 4.32 4.50 4.86 5.40

Barley 2.25 2.40 2.84 3.42 3.80 4.02 4.60 5.19 5.40 6.00

Corn 2.70 3.50 3.57 4.46 5.00 5.36 6.20 6.40 7.08 7.30

Faba bean 1.30 1.65 2.07 2.50 2.92 3.10 3.34 3.70 3.80 4.00

CottonLinseed 0.75 0.80 0.90 0.90 1.05 1.20 1.35 1.40 1.50 1.65

Sugarbeet 12.00 16.00 17.25 20.88 24.50 26.00 28.12 31.76 35.37 39.00

Melonseed 0.75 0.80 0.87 0.98 1.10 1.20 1.32 1.50 1.42 1.60

Melon 13.50 16.00 17.25 21.00 22.00 24.75 28.50 30.00 32.25 36.00

Vegetable 12.00 13.50 16.50 18.00 19.50 22.50 25.50 27.00 28.50 31.50

Hop

SHUANGTAWheat 1.70 2.02 2.54 3.04 3.52 3.70 4.08 4.59 4.70 5.10

Barley 2.10 2.25 2.66 2.88 3.20 3.75 4.30 4.84 5.00 5.40

Corn 3.00 3.30 3.87 4.76 5.30 5.62 6.50 6.67 7.20 7.38

Faba bean

Cotton 0.55 0.59 0.63 0.68 0.78 0.88 0.99 1.08 1.19 1.28

Linseed 0.40 0.60 0.68 0.70 0.81 0.90 0.94 1.10 1.15 1.24

Sugarbeet

Melonseed 0.68 0.80 0.93 1.05 1.11 1.12 1.17 1.30 1.35 1.42

Melon 15.00 17.00 18.75 21.00 22.50 26.50 29.00 30.00 33.75 37.50

Vegetable 13.00 14.25 16.00 17.25 20.25 23.25 25.00 26.25 29.25 30.00

HUAHAI

Wheat 1.70 2.10 2.50 2.62 3.15 3.68 3.70 4.20 4.72 5.25

BarleyCorn 2.85 3.30 3.72 4.10 4.60 5.48 6.34 6.60 7.05 7.23

Faba bean

Cotton 0.44 0.56 0.61 0.72 0.81 0.85 0.92 0.97 1.01 1.09

Linseed 0.60 0.70 0.87 0.90 1.00 1.12 1.24 1.30 1.38 1.35

Sugarbeet X XMelonseed 0.68 0.80 0.93 1.05 1.17 1.20 1.30 1.35 1.42 1.53

Melon 14.25 17.00 18.00 21.75 23.00 25.50 29.25 30.00 33.00 36.75

Vegetable 12.00 13.50 16.50 17.00 19.50 22.50 23.00 25.50 27.00 28.50

Hop

Note:

No output at the first year due to the treatment of the salinized soil

Chh.Ganu Had Corrdor Pid-f W - -a Caone.V Aju Mode( _____

INCREMENTAL PRODUCTION (Detiled)(In UnIs 000) nrement

lint 1 2to5 Bto8 9 10 11 to1S 1S 17 18to30

Main ProductionWhead kg 4,080.0 25,008.2 80,152.6 77,800.2 95,237.5 147,744.1 151,276.5 152,916.3 153,631.5make kg 1,120.0 4,260.7 9,590.0 12,186.6 14,218.8 20,961.6 21,525.3 21,784.9 21,898.0BaSy kg 1,996.8 5,660.0 12,177.9 15,494.2 18,854.2 28,130.0 28,624.9 28,851.6 28,909.0Fabe Bean kg 232.0 1,614.8 4,246.2 5,635.9 7,036.6 11,469.4 11,786.2 11,935.0 12,005.0Colton 1k 318.4 1,425.1 3,059.2 3,862.1 4,695.9 6,691.1 6,802.5 6,854.3 6,875.9Meln kg 65.0 5,683.1 15,319.0 20,106.4 25,068.8 40,396.6 41,398.9 41,900.0 42,087.5Meion Seeds kg 106.0 518.0 1,197.5 1,487.6 1,792.2 2,550.7 2,601.7 2,624.8 2,635.0Vegeable kg 850.0 5,712.0 13,700.2 17,617.9 21,617.3 33,046.2 33,769.4 34,110.6 34,230.6Beet I 1,820.0 7,429.3 17,873.7 23,539.1 29,076.9 44,973.9 46,0802 46,5822 46,800.0Hemp kg 498.2 1,701.3 3,512.6 4,413.0 5,349.8 7,950.3 8,113.0 8,188.4 8,219.5Hope Ig 114.0 418.5 64.2 724.8 801.1 1,005.6 1,012.0 1,014.0 1,014.0liMb ower kg 1,173.6 6,032.6 13,7282 17,510.2 21,572.5 33,110.2 33,763.0 34,050.7 34,131.4BaIey e"r kg 2,9952 8,926.8 17,514.4 21,931.0 26,444.7 41,355.1 42,535.5 43,105.4 43,375.3Soyben Wm kg 232.o 1,614.8 4,246.2 5,635.9 7,036.6 11,469.4 11,7862 11,935.0 12,005.0Cotton Straw IQ 63.7 -2,753.9 1,135.6 2,677.6 4,127.0 7,778.2 7,977.6 8,070.8 8,1092HwVp Straw kg 99.4 3,401.0 7,134.6 8,855.9 10,739.5 15,953.4 16,290.8 16,447.9 16,5152 4

wC

5-

ChinaGansu Nexi CorridorLivestock and ForestryINCREMENTAL PRODUCTION (Detailed)

(in Units IO00

Lk lIat 2 4 0 I I a 1 1 11 12 13 14 Is 1'

Main Livestock ProducionaAfalfa hey kg 40347.3 41244.71 43742.2e 4754.7d 8127.71 670.71 74175.10 35.42 s13.70 5117m.00 1t0373.3 t 1056.34 t17m2.5i 1li1MMl ttrsfl.01Alfalfa Sed kg oo 0. 0.a 23.00 40.Xr 40.00 40.a 4.oD 4con 40.c 40.00 40.00 0.W 2.00 40.00

Alfafa graing kg 0.o 0.00 0.00 17.31 312.44 312.4 312.4 312.44 312.4 512.44 312.64 31264 0.06 167.31 312.44

Wool kg 0.00o oO 0.00 o07 0.6 1.42 .13 1.05 2.07 2.07 2.07 2.07 2.07 2.07 2.07

Chkkan kg 6.2 6.23 6.23 s1.6 I..2 482.ee is.1 ese.so m.4 *20.211 e20.2 QO.2 cn0 r20.2n n.2

Egg nrdt chicks) WAd 100.00) 1o.o tO.OO u O.W mOOo turn 1.0 160.00 li.00 160.00 160. 10000 116.00 160.00 1 60 oo 1a000

Egg( (gghiks) 4 s1.00 516.00 516.00 16.00 014.00 01.00 01600 16. 510.00 016.o 51e.01 515.00 616.00 516.00u 516.00

Connercial Egg kg 50.40 5s.40 68.40 237.00 417A4 0s6.00 7)4.40 671.40 100.40 1001.40 1oo06o 1006.40 100640 1 4O 100o.40

Laere MMChicks 2D.OO 2d0 3M 200 3M 3.00 20.W 20.00 20.00 3. 3M 3M 3M 300 20.00

LaVarEggChicke 12.60 12.60 12.67 12.60 12.60 12.60 12.0 12.60 12.60 12.67 12600 12.60 12.80 12.0 128

Breeding Pig -rm In 0.17 0.17 0.17 0.17 0.17 0.17 0e17 017 017 0.17 0.17 0.17 0.17 017 017

Breding Pig-f hed o.0 0.00 0.01 1.02 1.53 1.02 1.03 2.01 240 2.67 217 2.67 2a7 2.07 2.7

Shep(oneser) heed 0.00 0.00 0.00 0.00 0.14 0.31 047 0.564 0.61 0.0 0.67 0so 0.6s 0 0.6 O.

Piglet heed 0e22 022 0.4 1.57 .43 6.62 11.6 15.42 17.34 20.10 a.10 2.10 20.10 10 20.10

calf hee 0.00 o.0 O00 0.00 0.04 0.07 0.10 0.11 012 0.12 0.12 0.12 0.12 0.12 0.12

By ProduothOtlher 0.00 0.00 0.00 0.00 44.67 66.3 144.00 102.0 162.00 171.00 171.00 171.00 1IM 171.00 171.00

Main Forestry ProducdonPoparpoie 0.00 0.00 0.00 0.00 0.00 0.00 0.00 24.60 122.57 lOO.n 71.91 71.2 142.22 10471 flu1o

Popler Thibr 0.0 0 0 000 0.°00 0.0 0.00 0°0 0.0 0.°00 0.0 0 0.00 ° 00 C. 000

PoplarFuel I 0.00 0.0 0.0 0.0 0.00 00 0. 2324.7 110e4.77 0.20 7123.42 643.71 12347.4 645640 600166

Fuel Wood (Terla) kg 0.00 66.75 1667.06 1667.sO 1677.00 2361.23 3270.00 375.00 2375.00 4036.75 5062.00 A6.75 3375.00 403s.75 06200

Apple kg 0.00 0.00 0.00 16.00 530.03 e.00 1511.75 2261.3 3138.63 4217.0 S6.33 7313.34 57.76 60.2e 1000740

Peer kg 0.00 0.00 07.34 154.3 3004.90 45s6.7s ee02.73 406.00 i23705 17O0.e1 21014.47 2161.67 2636 .47 2162.06

Nuewe Ueedlfng k 0.00 1000.00 1Dl 00 1000. 0 100.00 1000.00 2000.00 2000.00 2DOo.O0 MOo. 2300.00 2000.00 20000 2000.00 300.00

U-,

k is 16 17 1e 16 3 21 2n 23 24 20 as 2e 2e N

Main Livestock Production/aAlfalfa hay kg 110077.81 1084.24 10o3.3 10663.43 110461.67 6421.62 116317.01 117054.30 ls01.05 114616.45 1120I2.19 1066.67 1o .36 10667.43 1s441.17'

Alflfa Seed kg 40.56 40.00 40.00 40.00 40.00 40.00 40.00 40.00 0.00 20.00 40.00 40.00 40.00 40.00 40.00

an grang kg 312.64 312.44 312.44 312.60 312.44 12.44 312.44 312.64 0.00 167.31 312.64 312.84 312.44 312.44 312.84

Wool kg 2.07 2.07 2.07 2.07 2.07 2.07 2.07 2.07 2.07 2.07 2.07 2.07 2.07 2.07 2L07

Chilwn kg 20e c20n r20.2e C20n r20.2 can n202e n202 120e2 *2e2 220.2e n202e can e20.n an1

Egg(inaadchcks) we turn teran 167.00 1tur 1t0 1tun laOO 1tOur 1turn 1tun 1tr.0n tr.n tr.n tr.n0 t.0

EggF (ggl clh.e) mc 016.00 Ste.. 016.00 0s1.00 516.00 016.00 506.00 510.O 016.00 114.00 016.00 016.00 016.00 01600 16011

ConencoIl Egg kg too 100 .40 10.40 1o0o40 o0o040 100.40 100.40 100.40 1006.40 10o40 1o0o40 1o0.o 1o0o40 10A40 100.40

Leyr Met ChOicig 20.00 20.00 20.00 30.00 .00 2.00 20.00 20.00 20.00 20.00 20.00 20.00 23.00 00 20.0

LarlEgg Chkla m4 12.60 12.67 12.60 12.4 iS 12.46 12.00 126 12a.0 12.67 12.67 12.60 12.0z 1267 12.0

Breeding Pig -r F_s 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17

&aadkgPig-f heed 2.7 2.67 2.67 2.07 2.07 2.67 2.67 2.37 2.07 2.67 2.67 2.67 2.97 2.67 2.67

Shep (on p) hee o.0 0.68 0.66 0.66 0.66 0.66 0.66 o.66 0. 0.66 0.66 0.67 0 0.66 0.e

Piglet hed 20.10 20.10 20.10 23.10 3.10 20.10 20.10 20.10 20.10 20.10 20.10 20.10 3.10 3.10 20.10

can heed 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 112 0.12 0.12

By Produrcts

Oets ain h 171.00 171.00 171 W 171.00 171.00 171.0 0 .W 171. 00 171.00 171.00 171.00 I11. 17.00 171.00

Main Foretry Production Ht

Popilrpol_ c 73. 3v 3. .56 174 O.W .0 0.00 O. 00.0 O.W 0.06 O. 0 .00 0 .co O.W 24J5 ID

PopigrThober d 0.0 0.00 0.00 W 00 1234 61.35 SOAI 01.4 Wa.M 71.3 52A5 3WU4 1.31 14J

PoplarFuel kg e0.66 2341.71 2e0426 000 000 37561.3 184412 10100.3 1197237 10720. 21412.57 1576.7 1621 40.94 6674 LI C

Fuel Wood (T h) kg 6062.00 436.75 3375.00 4 .75 502.50 4375 337s.00 403.75 506250 436.75 75.00 4036.75 50e40 436.75 3375.6 W '

Apple kg 106074 1256,46 1401.05 iSM.12 15MAO 16s6AO 14042A0 16S6340 1711640 17402.61 17402.11 17402.1 174C 1746e2 1740281

Peer kg 230M.e 336s7 374022e 40170.5 4190.77 42628.15 432661 43e4111 44eo72s 4036712 45367.03 42e7.a3 42673 4s27a3 40367.03

N _a_ Sedln 2 W 2 W.00 20 00.00 230.00 w 2 306.00 366.00 0.001 30 00.00 23oW00.00 300.00 flU 00 216

a: Inceen al v1 tock products cover only tO e rom knklinanced direct breeding frma and btroduced breding stock to ftrmes, and do nat ake nto account tde Increa d producto f

the Improved breeding stock on the entire popuitlon. Pe I

- 104 -ANNEX CTable 4Sheet 1

Chin Mlgrants from Jish iha to Shuangt. Houshold ModelGansu H14x Corridor Projct

L mmoT pTALB

d - 0. . . e . 0.e 1.2 IA 1.7 2.0 1.5 2.1 2l 21 2l0.0 is Si --

ki" . . . 0.2, 0.2, .2,l- - . .2 2 0.2 0. 0.3 0.32 0.3 03~~~~~4s ~~~~~~~~~~~~0.2 0.3 0.3 SB* - t.0 C.; O.; 0.1 a.; 0.1 0.1 0.1 0.1 5.1 0.1 G.1P- * *.. 0.2 0.3 0. - - - - -*C1m . . . 1 1.0 1.1 1 IA 1.5 IJ 2.0 22 22 22 22

M61. ~~ ~~- * - Si Si 00 0. 0.0 e.e 07 Sie 0i S eJ 0*JIs" S AA- - - 1 .1 1 01 0.1 e 2 0 0 0 2 2

_i * - 0- 2 0 2 22 0. 0 02 0 5.2 S eJ S2 0Jv-~~~~~blm 0.0 0.0 0.0 - - -~~~~~~~~~~~~~~~~~~~. .3 O

H . . . 1I 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 L. 0.1 0.1Apple al0.2 2 0.GI -2 -. GI GA G

PMow IL - 6- - 2 0..2 0.2 0.2 . 0.5 1

_W.11 Idt. t J1T IJ 2 J Ii 3.2 3Si 5.1 GI 0.1 H 7.1 7.1 0.0 0L

Vw am - .1 0. 2 0.2 0.3 0. 0.4 .4 0.4 GA CA OAft 0.2 02 0.2 .

IWO 0 - . 0e to 0.0 ee Si 0.0 0.0 0.0 Si Si S. SiMad i- 0.0 0.0 0.- - -- - - -

Sub7 d_ - 0.0 0.0 e.0 5.0 00 e e.0 0.0 0 .0 0.e e J 0.0C_n- a". . 0.2 0.2 0.2 0.2 0. 0.3 S S 0. M.* Se 0to 0.0 0.0 OA Si0 0.0 Si0 Oi to0 Si 0.0 SiH-* 0.0* 0.0 0.0 --- -- -H_ -J _ 0.0 0e e

M . V*. ofr I 2.1 2.1 21 Lo 3.2 IA 4.2 - f LI 0.e ?A 0. 0.1 ,i OA

meAw lemee ., aWU_ bo F0. Sy r 0t - -1 .1 ..

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- 107 - ANNEX CT4ble 4

ChVemi HKS Cclddr Prtd

Re _c o O _wh m lo us k lti ModdPIANCLAL CUDGET (DITED) AdI - March

(hI Yut'000) is Without Proled With ProjedIto29 30 1 2 3 4 6 6 7 S * 10 It l2toU 30

main PNeduedWhet 10.4 10.4 10.4 0.6 0.7 0.9 1.2 1.5 1.6 1.7 1.8 2.0 2.0 2.0 2.0vlmetht - - - 0.4 0.5 0.6 0.7 0.8 0 9 0.9 0.9 0.9 0.9 0.9 0.9m1ir - - 0.2 0.3 0.3 0.4 0.4 0.4 0.5 0.5 0.6 0.6 0.6 0 6Bub 2.4 2.4 2.4 - - - - - - -FbaaBen 1.1 1. 1.1 - - - -Cdn _ - - 0.7 0.8 0.9 0.9 1.0 1.1 1.2 1.3 1.5 1.5 1.5 1.5Mebi S - - - 1.0 1.2 1.4 1.6 1.6 1.9 2.0 2.2 2.3 2.3 2.3 2.3V _ - - 0.7 0.8 0.9 1.1 1.2 1.4 1.5 1.5 1.6 1.6 1.6 1.6HM 1.6 1.8 1.6 0.1 0.2 0.2 02 0.2 0.3 0.3 0.3 03 0.3 0.3 0.3MFeb - - - - 5. 6.6 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3Apple - - - - - - 1.5 1.5 1.5 1.5 1.5 1.5 3.6 3.6pe- 4.6 4.6 4.6 4.6 4.6 4.6 9.4 9.4PaO" 0 09 0 .9 09 0.6 0.9 0.9 0.9 0.9 0.9 0.9 09MLton 0.2 0.3 0.4 0.5 0.7 0.9 1.0 1.0 1.1 1.2 1.5 1.5cn - - - 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3

Subtotal Main Prducton 15.6 15.6 156 5.2 11.8 13.4 15.1 22.2 23.1 23.6 24.1 24.8 24.8 32.0 32.0y ProductsWuet S 2.0 2.0 2.0 0.1 0.1 0.2 0.2 0.3 0.3 0.3 04 0.4 0.4 0.4 0.4hS~bttShw - - - 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2

d rIM oku- 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.19w ls 0.5 0.5 0.5 - - - -

Been sew 0.1 0.1 0.1 - -caion atw - - - 0.1 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3HM Sah 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0o - - - 0.4 0.4 0.4 04 0C4 0.5 0.5 0 5 0.5 0.5 0.5 0.5

Sub4-otuatlyproducte 27 27 27 0.7 0.8 0.9 1.0 1.1 1.3 1.3 14 1.5 1.5 1.5 1.5Gro_sValue Of Productin 18.3 18.3 183 59 12.6 14.3 16.1 23.3 24.3 24.9 25.6 26.3 26.3 33.6 33.6Other ab

Kia from LUstk Prodbucn 04 04 .4 0.4 - - - - - -Ud.tmwhicaiw 0.5 0 5 0.5 0.5 - -

Sub-Total Othe illows b0 0.6 - - --hPFLO 192 19.2 192 6.8 126 143 161 23.3 243 24.9 25.6 26.3 26.3 33.6 33.6

Pmoduction CootPuchaeed hIpus

' ased 0.6 0.6 0.6 0.1 01 01 0.1 0.1 0.1 0.1 0.1 0.1 0.1 01 0.1Wm thtN Sed - - - 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1mie sed - - - 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Baisy Sed 0.2 0.2 0.2 - - - - - - - - - - - -

Fl Bow seed 0.0 0.0 0.0 - - - - - - -CdanSee - - - 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 00 0.0Meln6Seed 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1Vegeabs Sed 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

May Seed o. 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0:=b5 se - - - - 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7:tOen 0.6 0.6 0.6 0.1 0.2 0.3 0.4 0.4 0.5 0.6 0.6 0.6 0.6 0.6 0.6NW0o- - - - 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1ure- - 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1Pioagot_ 0.3 0.3 0.3 0 1 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0 3Mwers 0.7 0.7 0.7 0.4 0.5 0.6 0.6 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0 7Peedde 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.306w Opi 0.0 0.0 0.0 0.4 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5WhImw - - 0.4 0.7 0.7 0.7 0 7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7Wemr 0.4 0.4 0.4 - - - - - - - -Mecinmy 0 8 0.6 0.6 0.4 0.6 0.6 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7Ar.1 Trackn 0.6 0.6 0.6 0.2 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4;'oqs-rshicelse - - - 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Fsdrlalm - - - 0.7 0.7 0.7 0.7 0.8 0.8 0.8 0.8 0.9 0.9 0.9 0.9Feadprocn*qu.iate - - 0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Alai X - - - - - 0.0 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.2AdStproductTa- - - - - 0.1 0.1 0.1 0.1 01 01 01 0.1pd ce - - - 0.1 0.1 01 0.1 0.1 0.1 01 0.1 0.1 0.1 0.1 0.106orh - - - 02 02 0.3 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.6 08

Sub-TaftI Pun-a_hd lnpuXt 46 4.6 5.0 40 5.5 5.8 6.2 61.7 7.1 7.2 7.3 7.3 7.4 7.6 7.6Labor

Sdsbw bor 0.1 0.1 0.1 0.1 0. 03 0.3 0.3 02 02 02 0.3U wdl dbor 2.7 2.7 3.1 22 2.6 2 .6 26 2.7 2.7 2.7 2.7 2.7 2 21 2.7.bor-R 0-1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 01 0.1 0.1

ulub1TtaHliredLaber 2.7 27 3.1 2.4 2.6 2.6 2.8 3.1 3.1 3.1 3.1 3.i 3.1 3.1 31Uub-TtelProductionCost 7.2 7.2 8.1 64 84 8.8 90 9.8 10.1 1033 103 10.4 105 10.7 107

OUTFLOWS 7.2 72 8.1 64 8.4 8.6 9.0 9.8 WA 103 10.3 10.4 105 10.7 107Cah FlowIeforsFlnencing 12.0 12.0 11.2 04 4.3 5.6 7.1 13.5 142 14.6 152 15.9 159 22.9 22.9FPianciol bilw

Trander fmnPAiLowPerod 7.2 7.2 7.2 6.4 6.4 86 9.0 9.8 10.1 10.3 10.3 10.4 105 107 10.7Cnarllon *OmcaAns - - 0.9 . - - - - - - -

Sub-Total Ftnancialhibyom 7.2 7.2 8.1 8.4 6.4 86 90 9.6 101 10.3 10.3 104 10.5 10.7 10.7Financial Outltis

TruairtNed Pod 72 7.2 64 6.4 8.6 9.0 9.8 10.1 10.3 10.3 10.4 10.5 10.7 107 10.7Not Financing - 1.7 -2.0 -0.3 -0.4 -0.8 -0.4 -0.1 -0.1 -0.1 -0.1 -0.2 2-C_h FlowAerFlbRnncing 12.0 12.0 128 -1.6 4.0 5.3 63 13.2 14.1 14.6 15.2 15.8 15.6 22.9 22.9Change In Not Worth

CWr*bdm frwmamwirsev - - 0.9 - - - - - - - - - - -PeeS"avean of

Trusr hi Nod Psod - 7.2 - - - - - - 10.7Sub-Total Change In Na Worh 7.2 -09 -107

FensPdly lneft Ahtwer Pnmncing 12.0 19.2 120 -1.6 4.0 5.3 6.3 13.2 141 146 152 158 156 22.9 336Return per F_9hnlOy of Labor - - - - -hncns tl Ib4umn pwr hlfautseums.lFrIl-Ca d Labor - - - - - - - - - - - - - - -

IRR 13.71. NPV * 5.04la Ro tes fra ah gs hi O gra h uv apge hi Ha hrigaoion era

Gansu Hexi Corridor Prolect

!ncome Irnpct on Milrant HoueholdsUnit Yuan

Preent Net Income Future Net Incorne Real Growth

Plaming Ndt-1995Household Plantation Family Family/b Per Year 10 Per Year 20 Per Per Year Per Year

ArExpertees Area (ha) Suie Income C pta Family Capita Familv Cita ToYear 10 To Year20

Migrnts from Yw6in Crmp Productio 0.7 5.0 729.3 145.9 4897.1 979.4 5787.9 1157.6 21.0/ 10.9'!.

ToChangmaArea Crop Production/a 1.2 5.0 729.3 145.9 7136.6 1427.3 10217.0 2043.4 25.6% 14.1%

Miginb fixm Jishishan Crop Production 0.7 5.0 1600.0 320.0 6500.0 1300.0 7400.0 1480.0 15.0/ 8.0%/C

To Shuangta Area Crop Productio/a 1.2 5.0 1600.0 320.0 9200.0 1840.0 12300.0 2460.0 19.1% lO.7/

Migrt firm lixien Crop Productio 0.7 5.0 1382.5 276.5 4884.0 976.8 5775.0 1155.0 13.5% 7.4%

ToChmgmaArca CropProductiont/ 1.2 5.0 13U2.5 276.5 7123.6 1424.7 10204.0 2040.8 17.8% 10.5%

ReoeateefirmChan Crop Production 1.8 5.0 12000.0 2400.0 15900.0 3180.0 22900.0 4580.0 2.9/ 3.3%

To H_ahai Amwb with Uveglock

MigruitnsChw4pna CattleSpeciulzed 0.7 5.0 1357.0 271.4 8144.0 1628.8 9035.0 1807.0 19.6% 9.9%

Irrigtion Area Production

Migrat in Chagm Sheep Spdalzed 0.7 5.0 1357.0 271.4 12952.0 2590.4 13842.0 2768.4 25.3% 12.3%

nigaion Area Production

Average 1.0 5.0 2459.7 491.9 8526.4 1705.3 10829.0 2165.8 13.2% 7.7%

Ln n

Note:a/The Migrants will pay 150 yuan/0. Iha for additional land use (total 0.5ha per family) after 5 yars in relocated new irription area.

b/ Relocate, from eidsting Changna Irrigation Ara to Huahai new irrigation area due to the constuction of the Changma Reservoir

ChhnOansu HeXi Coqrldor ProjectWhet-Shuagt. Nw Aea Crop -hFIANCIAL UDOET ExstIng(in Yiuu Pw he) 2Teed ,ju icrmet

{In 4onP"hZ} T ebnob6y 7" T _ | ? 8t0o0 1 2 3 4 5 6 7 loh

Revnue

Most 3.232.0 4,064.0 4,864.0 s,3en0 6,526.0 7,344.0 8,160.0 3,232.0 4.064.0 4,864.0 5,632.0 6,528.0 7,344.0 8,100.0Ev Products

Whd w * eo60.0 762.0 912.0 1,2580. 1 2240 13780 1,53.0 606.0 762.0 9120 I 058 0 1,224.0 1.371.0 1i530.0hob4lel Revemn -f3lWT 4,826.0 5T770 i 0 7752.o C722.0 9.690.0 - 3838.0 4.826.0 5277IVto 688.0 1 7-.5T-- ,7i22 9.690.0input coet

W ed * - 510.0 510.0 510.0 5100 5100 510.0 510.0 - 51.0 510.0 510.0 510.0 510.0 510.0 510.0Nvgen - . 101.3 155.3 209.3 263.3 317.3 3133 371.3 * 101.3 155.3 209.3 263.3 37.3 371.3 371.3P9ime - * 420 651 88.2 111.3 134.4 157.5 157.5 - 42.0 65.1 88.2 111.3 134.4 157.5 157.5

u* *enso225.0 247.5 270.0 292. 3150 337.5 337.5 - 225.0 2475 2700 292.5 315.0 337.5 337.5Pedde - . 25.0 250o2 25.0 25.0 250 250 250 250 25.0 25o 25.0 25.0 25 0 25.0 25.0AI Taw - - 300 3000 3D 0 30.0 300.0 3D000 3000 30D.0 3000 300.0 300.0 3000 300.0 30D.0Meiery . 450.0 450.0 450.0 450.0 450.0 450.0 450.0 - 450.0 450.0 450.0 450.0 450.0 450.0 450.0Wdw - 480.0 481.2 461.2 481.2 481.2 481.2 481.2 481.2 480.0 481.2 481.2 481.2 481.2 461.2 481.2 481.2

Sub4tol in o 48o.0 2,.134.5 4.1 WTT3T33.TT71433.3 -- 2W.S S 26325325 46.0 2,134.5 2,234.1 2333T 2,433.3 -2,3U29 2,632.5- 26325innom (Befoe Labor Cost) - 480.0 1,3.6 25920 3442a.4 i24 5,219.2 6,08.00 7056 -480.0 1,703.6 F-2,592 3,442.4 4,254.8 5,219.2 8o089.6 7,tt7.Labor cs

U ieiedbo - 510.3 1,275.8 1,275.81 1 275.e 1,275.8 1,275.8 1,275.8 1,275.8 510.3 1,275.8 1,275.8 1,275.8 1,275.8 1,275.8 1,275 8 1,275.8Income Lr abbor Costs . 990.3 427.8 1.316.2 2166S.6 is7s.0 3,943.4 4,813.s8 " 78j1i -90 3 427.s 1,316.2 2,1886.6 2,979.0 3,943.4 4,813.8 ,O7-I1s

InomeAdn Lxor: IRR None, WV P 37.41603imux Aw 1b IR * None, NPV * 27.823.07

c~~~~~~~~~~~~~~~~~~~~~~~~~~

V*o-W* ""AM cm

Yk- -t le * *0 1e- Sioo 4e91 4 S_ "

n__ l --60 2,540 4040 Use xe020 4xe Soe - 2,02 214 .340 xS5le 4Xo 4AW0 Ie

IWd e 1,00 ,010 4,00 5,26 4,00 6*0 7,40 3*10 3010 4no4 1,6 .20 SmPS

* 0 . d , e e i - - 200~~~~~~~~~~~~~~1 3 3 w 3 ws * 0 * 400 . * * 0 * 0* 2 0* 0**0enh . 15 21 27 35 4J 40 . 15 207 270 20 n . 0 44R*n000*t 3IO IN 210 2 2t 31 17

Minnie One . . 15 leA 18o YeJ 21 S Mi22 i1 Its Is lii 21 .St x .SPed~~~~~~~~ ~~~~ - .~~~~~~~~ 20 5 2 1 2 25 25 21 2 52 2 52

Ad T. - *0 * *" *0 *0 *0 *0 -0 3e0e *0s M.0 30 3w tWAdmmg ywft ~ ~ - 450 4lso 450 A5" 0 450 * 400 450 450 4*0 450*00

Labw tole000 l 605 6,1 61 OS 001 *1 ,0 0.015 0.011 X*1 501 601 61 6*1

Ih0WNdmbew . 08 2 22m 225 n5 221 2n 2W of 2 2Ws 225 to 2W 2t Zs

Al

rla

cminGansu Hed Cokidor Pro.edCoti.-Shuangta EXsIng Are Crop Mod April - MarchFINANCIAL BUDGET Existng(In Yuan Per ha) Techlogy New Technology

1 1030 1 2 3 4 5 6 7 8 9 10 11 12to30Revenue

Main ProduconCotion 12,960.0 14,400.0 14,880.0 15,360.0 15,840.0 16,320.0 16,920.0 17,280.0 17,780.0 18,360.0 18,840.0 19,320.0 19,800.0

By ProductsCotton Stew 2,721.6 2,884.0 3,122.0 3,220.0 2,M.0 2,856.0 3,556.0 3.640.0 3,724.0 3,850.0 3,920.0 4,060 4,158.0

Sub-total Revenue 15,681.6 17,284.0 18,002.0 18,580.0 18,612.0 19.176.0 20,476.0 20,920.0 21,484.0 22,210.0 22,760.0 23,380.0 23,958.0Input costs

Cotdon Seed 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0Nitrogn 450.0 450.0 637.5 712.5 787.5 787.5 787.5 787.5 7875 787.5 787.5 7875 7875PhosphF 1 252.0 252.0 260.4 268.8 273.0 273.0 273.0 273.0 273.0 273.0 273.0 273.0 273.0Manure 675.0 6750 675.0 675.0 675.0 675.0 675.0 675.0 675.0 675.0 675.0 675.0 675.0PeFiie 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0Animal Tration 225.0 225.0 225.0 225.0 225.0 225.0 225.0 225.0 225.0 225.0 225.0 225.0 225.0Machey 900.0 900.0 1.000.0 1,100.0 1 ,200.0 1,2.0 100.0 1,200200.200.0.0. 1,200.0 1,200.0 1,200.0Wtr - 360.0 360.0 360.0 360.0 360.0 360.0 360.0 360.0 360.0 360.0 360.0 360.0Water 135.0 - - - -Oter nput 1,0.0 1,050.0 1,150.0 1,250 1350.0 1,350.0 1,350.0 1,350.0 1,350.0 1,350.0 15.0 1350.0 1,350.0

Sub-total Inputcot 4,287.0 4,512.0 4,907.9 5,1913 5,4705 5,470.5 5,4705 5.470.5 544705 705 5.4705 5,4705 5,4705ncmemn(BeforeLaborCosts) 11,394.6 12,772.0 13,094.1 13,388.7 13,1415 13,7055 15,0055 15,4495 16.0135 16,7395 17,2895 17,9095 18,4875

Lab coats Unskdldhkbor 2,5515 2,551.5 2,5515 2,5515 2,5515 2,5515 2,5515 2,5515 2,5515 S 2,51 251 2551S 2,5515 0

knca (Afe Labor Costs) 8,843.1 10,2205 10,542.6 10,837.2 10,500.0 11.154.0 12,454.0 12,896. 13,462.0 14,188.0 14,736.0 15,358.0 15,936.0

hcom BeIre Lbo RR - None, NPV 32,672.00hconm Atr Labor RR Non, PV - 32,672.00

X Irrt D X1

V'

- in. -

X |S,t SSY w 0 'SS ANNEX C

-P|lable 6(b)

} ° 8 8 ° e s xj°g 19 8 ° S 3Sheet 2

_- N _ _w .

| -- E. 8- EsR1 88'tz

I, III0l08° - N - .- wooAS -

a-> .

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| I. II< ~I 8 °I, 1

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ii;s s3 i Il!t0|

ChinaGansu Hexi Corridor ProjectFaba Bean-Changma New Area Crop Mo April - MarcFINANCIAL BUDGET Existing(In Yuan Per ha) Technology New Technology

1 to 30 1 2 3 4 5 6 7 8 to 30

RevenueMain Production

Faba Bean - - 3,300.0 4,140.0 5,000.0 5,840.0 6,680.0 7,400.0 8,400.0By Products

Soybean staw - - 247.5 310.5 375.0 438.0 501.0 555.0 630.0Sub-total Revenue - - 3,547.5 4,450.5 5,375.0 6,278.0 7,181.0 7,955.0 9,030.0Input costs

Faba Bean seed - - 300.0 300.0 300.0 300.0 300.0 300.0 300.0Nitrogen - - 22.5 30.0 37.5 45.0 52.5 60.0 60.0Phosphate - - 126.0 168.0 210.0 252.0 294.0 336.0 336.0Manure - - - - 45.0 75.0 150.0 225.0 225.0Pesticide - - 150.0 150.0 150.0 150.0 150.0 150.0 150.0Animal Traction - - 300.0 300.0 300.0 300.0 300.0 300.0 300.0Machinery - - 300.0 300.0 300.0 300.0 300.0 300.0 300.0Water - 480.0 480.0 480.0 480.0 480.0 480.0 480.0 480.0Other Input - - 50.0 55.0 60.0 65.0 70.0 75.0 75.0

Sub-total Input costs - 480.0 1,728.5 1,783.0 1,882.5 1,967.0 2,096.5 2,226.0 2,226.0Income (Before Labor Costs) - -480.0 1,819.0 2,667.5 3,492.5 4,311.0 5,084.5 5,729.0 6,804.0Labor costs

Unskled bbor - 510.3 1,530.9 1,530.9 1,530.9 1,530.9 1 1,530.9 1,530.9Income (After Labor Costs) - -990.3 288.1 1,136.6 1,961.6 2,780.1 3,553.6 4,198.1 5,273.1

Income Before Labor IRR = None, NPV = 36,509.07Income After Labor IRR = None, NPV = 25,088.64

tD 0mat%D >

o' Cn

ChkwGisu Hed Corrkdor P-pcFnb. Bem-Changn New Arm

April - MarchYIELDS AND INPUTS Existing(Per hi) Technoogy New Technology

Unit I to 30 1 2 3 4 5 6 7 * to 30yekd kg - 1 ,650 2,070 2,500 2,920 3,340 3,700 4,200By productsSoybe.n s5w kg - 1,650 2,070 2,500 2,920 3,340 3,700 4,200

FabuBeanseed kg - - 150 150 150 150 150 150 150Nbogen 1k - - 30 40 50 60 70 80 80Phosphate kg - 300 400 500 600 700 800 800Maniae ton - - 3 5 10 15 15pesticide Yuan - 150 150 150 150 150 150 150Ankid Tracion Yuan - - 300 300 300 300 300 300 300Muchiry Yuan - 300 300 300 300 300 300 300Watr m3 - 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000OlherInpul Yuan - s0 55 60 65 70 75 75LaborUnskdld bbor day 90 270 270 270 270 270 270 270

m I-ItM

0t >

Ga MoS Corrkr PidFMa Be-hign r- g A ApN- RUd

(Ps he) T A Nw TachsoheyUdt 1toso 1 2 3 4 * 6 7 U 9 1i 11 121la

YVA kg 4.000 4,200 4340 4.470 4,600 4,740 4.6o 5.020 5,1O 5,3co 5,430 5,50 5.700

a Ibl O lo 4000 4,200 4.340 4.470 4,O6 4,740 4,S80 5,020 5,160 5.30 5,430 5.560 5700

0 -

FPaB Ew n_d bg 150 150 150 150 150 150 ISO ISO 150 150 1SO 150 150hib"m e 9 so so eU 7n as 0 8 as as e ee as e SPhoate kg 6so e0s 766 677 ? 97 967 967 967 se7 W7 67 967 917Ms tnIS IS 15 15 15 15 15 15 15 15 15 15 15Pa s Yuen 120 120 130 140 150 150 150 150 150 150 150 150 150Aim' Tb Yurn 300 300 300 300 300 m 300 300 300 300 m 30D 30DMaduiYs Va 225 225 250 275 300 3UD 3UN 3 3N 3U 3UN 3U 30Uwa m3* 5,625 6,0oo 6,000 6S000 6,000 6,000 6,000 6,000 6AW 60 6W 6OD0Wa m3 5,625 -

Olihyi Vad t 75 75 75 75 75 75 75 75 75 75 75 75 75

UhwflS bbr day 27 270 270 270 270 270 270 270 270 270 270 210 270

Gnu Haud Corwdwk Pmpcq s-Fabe Bmwi--~~~~~~~~~~ EWdWg Ame Crop ~~~~~~~~PelMarch 4HFib fn.ag. Exdi Argo Qo

FCLJUAL BUDGET Exhom (in Yuen Pr he) Technoeogy Now Technology

1 o30 1 2 3 4 £ a 7 a S 10 11 12 j30

bun

FabsBen 8,000.0 8,400.0 6,6so0 8,940.0 9,200.0 9,480.0 9,760.0 10,0400 10,3200 10,600.0 10,6600 11,120.0 11,4 00By Products

Soybmn obsw 60D0o 6300 651.0 670.5 690.0 711.0 732.0 7530 774.0 795.0 6145 634.0 6s.0Sub4oW Re" en8,6000 9,0300 9,3310 9,610.5 9,890.0 10,1910 10,492.0 10,7930 11,094.0 11,395.0 11,674.5 11,9564.0 122550bped cos

Febs Bow seed 300.0 300.0 300 0 300.0 300.0 300 0 300.0 300 0 300 0 300.0 300.0 300.0 300.0Nbagen 45.0 45.0 51.0 58.5 66.0 66.0 66.0 66.0 66.0 66.0 66.0 86.0 66.0Phosphts 273.0 273 0 321.3 368.3 414.5 414 5 414.5 414.5 414.5 414.5 4145 414.5 414.5Muss 225.0 225.0 225 0 225.0 2250 2250 225.0 225.0 225.0 225. 225.0 225.0 225 0

PF*bokie 1200 120.0 130.0 140.0 150.0 150.0 150.0 150.0 150.0 1500 150.0 150.0 1500 a ZIArdinm TscAln 300 0 300.0 300.0 300. 0 3000 30.0 300 0 300.0 300.0 300.0 300.0 300.0 300 0 H X'Mohrsy 225 0 225.0 250 0 275 0 300.0 300 o 300 0 300 300.0 300.0 300.0 300.0 300 0 Cwt - 450 80 o 0 4o 0 o 40.0 480.0 480.0 4o.0 4oo.0 480.0 4co.0 480.0 480 0 aWSn 168.8 .* - - . . - , ,OthwrA 75.0 75.0 75.0 75.0 750 75.0 75.0 750 750 75.0 75.0 75.0 75. 0bt Inpn csh 1,731.8 2,013.0 2,132.3 2,221.8 2,310.5 2,310.5 2,310.5 2,310.5 2,310.5 2,310.5 2,310.5 2,310.5 2,310 5

kioms (Before Labin Cost) 6,8683 7,017.0 7,198.7 7,386.7 7,579.5 7,8805 6,181.5 6,462.5 8,76.5 9,064.5 9,364.0 9,6435 9,944.5

U hod w 1,530.9 1,530 9 1,530.9 1,5309 15309 1,530.9 1,530.9 1,530.9 1,530.9 1,530.9 1.530.9 1.530.9 1.530.9-hcoi Labw Cosdt 5,337.4 5,4861 5,6676 5,857.8 6,046.6 6,3496 6,6506 6,951.6 7,2526 7,563.6 7,633.1 8,112.6 8,413.6

KmU, Ithe Libor IRR * None, NPV = 12,676.40Ircome PAr Lmbr IRR u Nore, NPV = 12,876.40

cNGen Hod Ccstdrw PictMake-Chng ffwd Are Crop ModaW Aprl- MwchFINANCIAL BUGOET Exblsngan Yunn Per h) Technology Now Technology

I to 30 1 2 3 4 6 6 7 8 9 10 11 12 to 30

Man ProdueNnswin 8,400.0 9.720.0 9s,s9.o 1018.0 10,404.0 10,632.0 10,872.0 11,068.0 11,328.0 11,556.0 11,784.0 12,O00.0 12,240.0

By Pdmmm stwm 1,185.0 1,215.0 1,245.0 1,280.0 j*. 1,330.0 1,350.0 1,386.0 1,416.0 1.445.0 1,480.0 1,530.0

Sub-tota Reven 9,585.0 10,935.0 11,205.0 11,468.0 11,704.0 11,962.0 12,231.0 12.474.0 12,744.0 13,001.0 13,264.0 13,500.0 13,770.0hput cost.

Makesd 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0Nitron 525.0 525.0 562.5 637.5 712.5 712.5 712.5 712.5 712.5 712.5 712.5 712.5 712.5Phoephb 195.3 195.3 210.0 235.2 260.4 260.4 260.4 260.4 260.4 260.4 260.4 260.4 260.4luAw' 450.0 450.0 450.0 450.0 450.0 450.0 450.0 450.0 450.0 450.0 450.0 450.0 450.0Patde 120.0 120.0 125.0 140.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0Animal Truction 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0 300.0 3D0.0 300.0 300.0Mac*eY 450.0 450.0 450.0 450.0 450.0 450.0 450.0 450.0 450.0 450.0 450.0 450.0 450.0Water - 576.0 576.0 576.0 576.0 576.0 576.0 576.0 576.0 576.0 576.0 576.0 576.0Watw 216.0 - - - - - - - -

Otr lnpiA 825.0 825.0 825.0 625.0 825.0 25.0 82s.0 825.0 825.0 625.0 825.0 825.0 825.0Subttotal hnput costs 3,231.3 3,591.3 3.648.5 3,763.7 3.873.9 3,873.9 3,873.9 3.873.9 3,873.9 3,873.9 3,873.9 3,873.9 3,873.9Income (Before Labor Costs) 6,353.7 7,343.7 7,556.5 7,704.3 7,830.1 8,088.1 8,357.1 8600.1 8,870.1 9,127.1 9,390.1 9,626.1 9,896.1Labor costs

UnkUled labor 1,871.1 1,871.1 1,871.1 1,871.1 1,871.1 1,871.1 1,871.1 1.871.1 1,871.1 1 e71 1

1,871.1 1,871.1 1,671.1Incom (After Labor Coda) 4,482.6 5,472.6 5,685.4 5,833.2 5,956.0 6,217.0 6,486.0 6,729.0 6,999.0 7,256.0 7,519.0 7,756.0 8.025.0

Income Before Labor IRR - None, NPV 1 18,193.49

Inm Aftr Labor IRR - None, NPV - 18,193.49

ChinaGansu Hexi Corridor ProlectFhsneb ONd EconoIIC BO of R - m

Boind - ISyuar forn a" yM in rem& iA" alage)Switch Swttch

Component Nane FIRR NPV EIRR NPV Value lb Value/c

(%) miuioYuan (M%) znilinu PyU Puat

kgn-lo mi d Drinage- Changma IrIglo Area 12.1 6.6 15.8 227.5 17.9 21.6

-Shangta krlllon Are 17.2 1634 234 319.7 35.3 54.5

- Huah. hpOn Area 12.3 3.5 18.0 72.5 22.0 28.3

Subt hIlgaTlon and Dr_ aIng 15.6 1734 18.2 619.7 26.0 34.0

Foresy Deveopment- Proction Foresy 12S 0.5 14.7 3.0 25.0 334

. FuelWoo Foresy 13.3 0.1 17.0 0.5 11.0 12.4

- Agro-Foetia 21.0 77.7 22.8 914 49.3 97.1

- Nusery 16.6 0.7 20.5 1.1 19.5 24.2

Subtottl Foresty DeI _pment 19.5 79.0 214 96.0 45.5 6.6

Ivestock D -- Pastwu mnpvemt 18.7 23.7 29.5 42.L 114 12.9

- Forag See Producton Bse 17.9 0.6 21.2 0.6 31.7 46.4

- Parent Layer Egg Chicks Farm 26.2 2.2 31.5 2.2 37.8 60.7

- Parent Ler Mt Chicks Farm 14.3 0.2 15.0 0.3 14.9 17.6

- Breeding Pg (ean pork) Farm 12.5 0.0 12.S 0.0 9.3 10.3

- Breeding Pig (sow Farm 16.2 1.2 224 1.2 17.7 21.5

- Uvestock ProdutconB ase 244 11.7 37.0 10.3 7.0 3.0

Subtotl Litock Development 19.6 39.5 29.1 6.0 16.0 19.0 H

Totbl Project 16.5 291.9 18.6 774.1 26.0 34.0 c

a. Household ftr e and orchardsb. peceag chane of redueod benfis to reduce EIRR to12%.c. Pecntag dcnge of Incased total cost to reduce EIRR to1l2.

ChinaGansu Hoxi Coridor ProjectFnandiM mad Eonnonic Rd f Rium

Swttch SwitchComponent Name FIRR NPV EIRR NPV Value lb Value k

(%) miLna (%) Yiuen a pYkrgaonad Drage- Chmiga Irraon Area 10.9 47.9 14.4 143.6 12.0 13.7- Shuangt Ir lgaton Ar 15.4 105.6 21.1 255.0 30.0 43.0- Huah Irrgation Are 9.8 -29.6 14.6 34.3 11.4 12.9Subtot Irrigation and Drainage 13.8 8.1 16.3 433.0 20.0 25.0

Foresy Development- Protection Forestry 12.5 0.5 14.7 3.0 25.0 33A- Fuel Wood Forestry 13.3 0.1 17.0 0.5 11.0 12.4- Agro-Forstryla 21.0 77.7 22.8 91.4 49.3 97.1- Nursery 16.6 0.7 20.5 1.1 19.5 24.2

Subtotal Forstry Development 19.5 79.0 21.4 96.0 45.5 U3.6

Livestock Deveopmnt- Pasture Improvement 18.7 23.7 29.5 42.8 11.4 12.9- Forage Seed Producton Base 17.9 0.6 21.2 0.8 31.7 46.4- Paent Layer Egg Chicks Farm 26.2 2.2 31.5 2.2 37.8 60.7- Parent Layer Meat Chicks Farm 14.3 0.2 15.0 0.3 14.9 17.6- Breeding Plg (lean pork) Farm 12.5 0.0 12.5 0.0 9.3 10.3- Breeding Pig (sow) Farm 16.2 1.2 22.4 1.2 17.7 21.5- Livestock Production Base 24.4 11.7 37.0 10.8 7.0 8.0

Subtotal Livestock Development 19.6 39.5 29.1 58.0 16.0 19.0 _ m0J

Total Project 14.9 126.6 17.1 587.4 20.0 26.0

a. Household ruit trees and orchardsb. percerage change of reduced beneftls to reduce EIRR to12%.c. Percena cunge of Incrased total cost to reduce EIRR to12%.

Gan Had CanId ft4ftle Modd

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A 30 of as .1. MA 11 1:~~~~~~~~~~~~~~~~

- 119 -ANNEX CTable 8

CHINA

Gansu Hexi Corridor Proiect

Main Conversion Factors

Standard Conversion Factor a/ 1.00

Machinery/Equipment b/ 1 .10

Electricity 1.10

Transport - Rail 1.07

Transport - Road 0.96

Labor - Unskilled 1.00- Skilled/technician 1.30

Earthwork 1.06

Materials 1.00

Fuel 1.00

a/ SCF = (Official exchange rate)/(Shadow exchange rate) = 1b/ For locally made machinery and equipment procured locally.c/ The other conversion factors are calculated based on the estimated

economic prices and the prices used in the cost budget.

ChinaGansu Hcxi Corrfdor Project

ECONOMIC BUOGET (AGGREGATED)

I 5t.36 1 2 3 4 s * 1 I 9 1 11 1 1 14 13 16 1 1s 1s 26. 2 225026 27 2e # 74

F..d 1 2W0.7 MA.7 2211 227 5 204 2531 M 29 2o52 52.7 004 404.3 4470 4a3.6 165. 5420 5614 5754 640 15w.0 5.7 see.7 51.7 1w1.7 sr., 1r4.7 Sn7 501.7cam...w 12 162.1 72I.0 1715 I5M 201.2 2164 2Z2.A 254.9 2M26 14.0 347.6 374.0 400.3 4154 477 7 426 4421 444.7 445A 445A 4453 445s 445s 445s 445e. 445.8Foddu . I I I.: 127 130 136 149 11.9 20A 225 251 276 161 30.3 20 200 322 22 2 31. 31A 3220 34.e 32A 21 31A 32.0 3325F.," - 0.6 0 9 0.e 3.9 6.9 los 157 22.e 2#.0 37.8 45.6 537 s5o 64.5 72n1 7.4 64.7 IONA 1163 111.1 1063 lo" IW04

4 - - -~~* . . . . 0.0 5.0 0.0 0.5 0.0 0.0 0.0 0.0 0.0 0.0 00 00 0.0 0.0 0.0 0.5 00 0.0 090 0.0 00fi IdI- - 13 13 12 44 7. I I.1 134 15.7 1.0 19.2 1.2' 19.2 19.2 162 10.2 lii 161 1.2 59 592 1. 1.2 10.2 13.20a- _0 - 0 2 o9 o o II 20 2.7 _30 7 4 s4 5. 2 .2 2 52 52 5 2 5.2 52 5.2 0.2 0. 5. 0. 0. 5.2 02

06b44 r_Md. 372. 372.6 311.0 4212 4421 471 5 511.1 501.1 015.7 662 n77.2 0673 627.0 1010.1 1.0572 1.0071 1.1250 1140.3 1.1602 1.111. 1.1753 I0A 1x264.0 1.20 11979.0 M132 1.162

F. _..4bsgp 47J 473 46.7 404A 45.1 Sa. 54.7 60.0 13.6 7412 as. 2A 67A 105.0 10.0 114.2 11623 11e2 1s0e 1163 1ls9 1163 11e 11eJ 116- 1193 1163a0- 4 § Wd F f. . . . . . 0.0 0.1 0.1 0.2 0.2 0.2 0.2 02 0.2 02 0.2 0.2 02 0.2 0.2 0.2 0.2 6.2 0.2 0.2

b*.446M6sw.e45. 473 47.9 467 404 451 510 547 so0 so7 74 624 925 a 7 1v5.2 100 a114 4 1104 1923 110.7 120.0 120.0 1200 126.0 120.0 12.0 120.0 120.04203 420W 444.7 40.7 402.2 sno 5s.e 621.7 ee4s 71eo 9626 900 1.014o 6 1.1453 1.1069 12114 124a2 1.26 1273 1.2999 1,26505 1.223 1,2.0 121 1A,e6 1.3113 1,1217

Pr§dWd§M C.dCsc4

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r.v C6m .d . 113 106.7 1191 140J 171 13 1 1451 134 A 6. 24.9 03. . * * 00 . . * oo . . . . sSb*.T4dPwdin.46pds t 1102 11530 5203 1403 144.7 140.2 147.0 72. 40.7 3230 0.0 -- 0 0 Cm9 -

F- '. * 01 0.0 04 04 04 05 0o 0S 0.5 0.3 . .. . . . . Ib4M40 k _C . . 1101 11.03 I1.3 149.9 1451 140.7 147.9 72 411 32A 0.0 -0 - -* - - - -0

s..& 17.7 17.3 17.7 17.7 1eJ 193. 21. 2n5 261 2r4J 27 372 231 40A 403 403 406 453 40.7 407 40.1 407 40. 47 40a7 407 4"- - _ _ 0 0 0 3 003 - * - - -os1 A 93 63 OA 62F2_6350 263 263 267 41 453 497 321 24J 626 063 74.7 941 5o 67.7 063 920 263 o2o 263 26nA a1 26 a&7 as 2a

C- MP" 462 4V12 073 o II 0.7 7.2 62.7 62 1033 117A 1303 141.7 547 1 l 16.1 150 lo 1503 150 9 1519 513 5113 1013 1SI3 ISI 5513 1s01 1513 15*LY." __& .- - - - 61 0A 0.6 0.7 03 13 1W 13 1.0 I 1 I 0 1.o I A 1t3 I A IJ 1 IJ 13 13 .O

64111111cod 03 - 01 0.2 5.2 OA4 05 .7 0 0.9 Io0 I.I 1.1 I.1 I. 1 1.5 SI I .I I I .1 1.5 .1 1.1 1.1 1.J 1.I 1.IllbT.4d 4 6i 6dhV46l INA 1603. 114.5 117.8 127.0 126. 163.7 113.1 1063 211A 2251 255.7 2731 277.7 20 2430 26M6 26 7 267 D. 2D7J 2W4A W7 2 2nu 247J M

F- W_ s7J S71 01.0 05 2663 194 745 62.2 2A 104.7 1172 126 132IY 135.5 135.7 126.1 124.2 126.3 1261 5264A 126A 137 IYO 1230. 1247 163S 164A9,6.6" C..ft I557 15is 1743 171.4 50.7 2679 2216 2511 2600 310.5 2525 262.5 40e.2 412.2 4166 426.1 4219 422.0 423A 423.9 423.7 424.1 4263 42a 42.0 4243 4233

T04_e Co 4 156.7 156. 2663 204 317 2657. 3723. 3926 424A r9 226.6 414.9 4092 4312 45.4 420.1 4211 425.0 421. 425. 425.7 424.1 424A 420. 4264 4246 425

o C. 3.1 a06.6 0.7 26.9 47.1 40.7 623 406 401 26.9 6.7 63 66I *J 6 .63.7 9.7 6.7 17 0.7O6T.L. 154.7 I503 249.1 4321 4133. 421A 420 4267 401.2 4270 441A 441.s 412 420.0 422.5 427.0 42e6 420.7 42A 42.0 4303 4203 431 a 43.5 431.0 43o.0

CM& F4w _2 2x.1 0.7 Ne5 7e.e 5063 544 1129 105.1 226 4209 1912 401.7 6S03 742A 7M4A A13 24 W.1 N9U S 0643 01 _.4 .I - - on?

NtR * 16*l NPV ' 774.12

0o 0

- 121 -

ANNEX CTable 10(a)

ChinaGansu Hexi Corridor ProjectRisks and Sensitivity Analysis

Switch SwitchRisk from Increased Salinity EIRR NPV Value /a Value /b(in Shuangta Reservoir) (%) million yuan percent percent

Irrigation and Drainage- Shuangta Irigation Area 18.1 220.5 27.0 37.0

Subtotal Irrigation and Drainage 16.8 519.6 21.0 29.0

Switch SwitchRisk from Natural Disaster EIRR NPV Value la Value lb(Drought, Sand wind & Scorching Heat Waves) (%) million yuan percent percentIrrigation and Drainage- Changma Irrigation Area 14.9 171.5 14.1 16.4- Shuangta Irrigation Area 22.3 293.2 33.3 49.8- Huahal Irrigation Area 17.0 60.6 19.0 23.5

Subtotal Irrigation and Drainage 17.2 525.0 22.0 30.0Total Project 17.9 679.7 25.0 30.0

Switch SwitchYield Influence by Soil Salinity EIRR NPV Value la Value /b(Stable Crop Yield reached by 11 years) (%) million yuan percent percentIrrigation and Drainage

Changma Irrigation Area 14.4 143.6 12.0 13.7- Shuangta Irrigation Area 21.1 255.0 30.0 43.0- Huahal Irrigation Area 14.8 34.3 11.4 12.9

Subtotal Irrigation and Drainage 16.3 433.0 20.0 25.0Total Project 17.1 587.4 20.0 26.0

Switch SwitchRisk from Canal System Efficiency EIRR NPV Value la Value lb

55 percent ) ( X ) million yuan percent percent- Uvestock Development 13.6 5.2 11.0 10.0

Total Project 18.3 721.0 25.0 32.0

Switch SwitchRisk from Institutional Capacity EIRR NPV Value /a Value /b(Benefits delay by two years) (% ) million yuan percent percent

- Irrigation and Drainage 13.0 108.4 8.0 9.0- Forestry Development 17.0 57.7 34.0 60.0- Livestock Development 13.0 8.8 5.0 6.0

Total Project 13.0 174.9 9.0 10.0

a. percentage change of reduced benefits to reduce EIRR to12%b. Percentage change of Increased total cost to reduce EIRR to12%

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-123-

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- 125 -


ANNEX D

Summary of Environmental Action Plan

- 126 -

ANNUX D

Sumarv of Environmental Action Plan

General

A comprehensive environmental impact assessment study was jointlycarried out by China Northwest Design and Research Institute of Ministry ofElectric Power and Gansu Design Provincial Hydropower Investigation and DesignInstitute of Ministry of Water Resources. The study report has identified bothadverse and positive impacts as a result of project activities and development,and recommended appropriate measures to mitigate the adverse effects. Beside thenormal impacts resulting from construction activities, the most significantadverse impacts are:

(a) potential increase of salinity level in the existing Shuangta Reservoiras a result of land reclamation and salt leaching to be carried out underthe project in the Changma Irrigation Area located upstream of thereservoir;

(b) changes to the regime of groundwater along the middle reaches of ShuleRiver as result of flow regulation by the Changma Dam and diversion ofwater to new irrigated land developed;

(c) demand for energy by new migrants may lead to cutting of trees andshrubs for fuelwood; and

(d) the Changma Reservoir will inundate about 131 households (566 persons)and would require resettlement elsewhere. (This impact has been dealtwith separately through the preparation of a Resettlement Action Plan).

Plan for Mitigation and Management

In close consultation with the design institutes who carried out theimpact study and the Bank missions, Gansu Government has drawn up a plan formitigation and management of the environmental impacts. The plan (see Annex DTable 1) covers short-term and long-term impact as follows:

Short-Term: The short-term plan cover mainly mitigation of adverse effectsarising from project construction activities, sanitation, waste disposal, air andnoise pollution abatement. Disease control and treatment among the new voluntarymigrants and relocatees resettled from the Changma Reservoir area is alsoincluded. Industrial and urban effluent polluting the Shiyou River, currentlyunder the implementation, will be continued with funding from the Yumen CityGovernment and polluting enterprises concerned.

Long-Term: The long-term plan covers monitoring of impacts on land andwater resources, including biota of plant and animals. Surface and ground waterquality, groundwater level, and salinity level in the Shuangta Reservoir will bemonitored at regular intervals up to year 2005 and beyond where necessary. Microclimate changes and induced earthquake by the Changma Dam will also be monitored.

Implementation Schedule

The plan will be carried out through the project implementationperiod from 1996 - 2005. Some long-term plan items will be continued aftercompletion of the project construction in 2005. The implementation schedule isshown in Annex D Table 2.

- 127 -

Estimated Costs

The total cost is estimated at Y46.2 million as summarized in AnnexD Table 3. The main items and their estimated costs are as follows:

(a) Data collection & monitoring Y12.5 million(b) Equipment & instruments 19.3(c) Installation and commissioning 2.4(d) Staff training 2.0(e) Design, supervision and management 10.0

Total Y46.2 million

Management

The physical activities - data collection, monitoring and analyticalwork will be contracted out to local environmental agencies and universities whohave the necessary capacity and competence to carry out such activities. Thiswould avoid the Project Office of setting up of its own establishment, leadingto duplicating staff and equipment. The Monitoring and Evaluation Division underthe Project Management Bureau will be responsible to oversee the contractedenvironmental agencies, with assistance from technical specialists, if necessary.

Monitoring

A comprehensive environmental monitoring system will be establishedto monitor the long-term impacts on land and water resources in the Shule RiverBasin. Technical assistance has been sought from the International LandImprovement and Reclamation (ILIR) of Netherlands to plan and design the system.Key monitoring stations will be set up prior to start of the main project workin order to collect baseline data for comparison. The proposed system networkis generally shown in the attached sketch map to the Annex D. Key parameters tobe monitored would include: water quality parameters for both surface andgroundwater, meteorological data, water table, terrestrial and aquatic biota, andsoil salinity.

Rehabilitation of Source Areas after Emigration

Environmental rehabilitation of the source areas in the elevenemigating counties would be planned and carried out by the local governmentsafter permanent emigration of the people. Priority would be given to theenvironmentally degraded areas on hilly land and cultivated land on steep slopes.The rehabilitation would be mostly through soil and water conservation measureswhich are well-tested locally and cost efficient. The measures would includeafforestation, planting of shrubs and grass, closing of hilly land and steepslopes for cultivation, terracing and benching, and change of cropping patternswith less emphasis on food grain cultivation. The itemized works items and costestimates are given in Table 4. A total of 25,000 ha would be rehabilitated inthe eleven counties at a total cost of Y13.5 million (base cost).

GANSU HEXI CORRIDOR PROJECTEnvironmental Action Plan

Item Identified Impact Proposed Mitigating Mcasurcs Mitigation methodology and Target: Standards and level of Units responsible for: InvestrentNo. processes rcsults expected (__000)

__ _ ~~~~~~~~~~~~~~~ ~ ~~~~~~~~~~~~~~~~~Implem./Execution Supervision/Monitoring

1 SHORT-TERM PLAN ___ _ ____

Durinn Construction / Proiect ImDle.entation

I Disposal of waste water during To contruct settling tanks and Water from aggrcgrate washing China's national standard for Contractors, Unit in-charge of Projcct Management Bureau,constuction of Changma Dam neutralizing tanks. is to be settled in settling tanks Surface water: GB8978-88 construction. Northwest Design Instituteand he dwork. before discharged. Water Gradc 1.

fr5om washing of concrete smixers is to be neutralized of it 8acidity/alkalinity beforcdischargc.

2 Solid waste disposal at Burying, backfilling, Waste from construction will be Containment to prcvent Contractors, Unit in-chargc of Project Management Bureau,

construction sites designated dock piling & used for bsckfilling or burying.. secondary pollution construction. Northwest Design Instituteapproved utilization. Othcrs to be stock piled at

designated areas. Daily 20domestic waste will be buried.Night soil will be treated and tobe used as fertilizer.

3 Air pollution at sites in Dust, smog and noise control at Use of mask and muffles by Grade n in GB3095-82 Grade Contractors, Unit in-charge of Proj. Management Bureauconcentrated areas. site. Protection for workers. workers, watering of dusty IL construction. 19.5

roads, install smnog reduccr intrucks.

4 Noisc pollution at sites in Noise reducing and dampening Usc equipment and machinery China national standard for Contractors, Unit in-charge of Proj. Management Bureau.concentrated areas. measures, limiting construcion with low decibic as far as industrial noi2se control: GBJ construction.

at night. possibic. Strengthen proper 87-85. China national standardcqtuipment maintenace. Adopt for environment noise control:noise reduction measures for GB 3096 Grade U mixed ae.

noist air compressors, air vesscl,ctc. Avoid night shifll works Ennear residential areas. I

Itemn i Identified Impact Proposed Mitigating Measures Mitigation methodology and Target: Standards and level ofUnits responsible for: Investment

No. processes results expected (OY'000)

__________________ I Implem.,,Execution Supervision/Monitoring __

S Epidemic diseases in Public health inspection and Regular physical examinations No applicable standards, but Yumen City and Anxi County Project Management Bureau.

concentrated areas of anti-epidemic measures. of workers. issue of preventive close monitoring of infection Epidemic Control Stations.

construction sites. medicines, clinical treatment. incidence.

Disinfection treatment of

potential infectious disease 40

areas. Strengthen anti-

epidemic health measures.

6 Potential increase of salinity Monitoring of salinity level in Close monitoring of salinity Not to exceed the baseline Units in-charge of construction, Project Management Bureau.level in water of Shuangta reservoir, and staged and levels in the leachage draining salinity level established prior Northwest Institute.

Reservoir. gradual reclamation of into reservoir aand control to leaching of land. Chinasalinized land up-stream of progress on reclamation of national standards for surfacereservoir salinized soil areas. water quality for irrigation: GB

5084-92 Grade n1.

7 Water pollution in Shiyou River Polluting enterprises to invest Polluting enterprises required to China's national standard Identified enterprises and Project Management Bureauin effluent treatment. complete/constrcut waste water GB8978-88 Grade 11 for Yumen City EPA. and Prov. EPAAdditional water diversion from treatment facilties for comprehensive discharge ofShule River for dilution. Laojunmiao Oil Extraction waste water. China national 1-

factory, Yumen Oil Refinery standard for surface water l D

factory and Yumen Power environmental quality:GB 3838 See Note (b)

Station. Diversion of 61 Mcm 88 Grade 11.of water from Shule River to

dilute the pollution.

New Settlement Sites _d _ __ _

8 Infectious diseases from Public health hygiene and Physical screening of emigrants Control and eradication of County and township public Project Management Bureau.

voluntary emigrants. inspection, disease control and before settlement, regular epidemic diseases from health and epidemic disease 560

tretment, health education for follow-up and treatment. migrating counties into new control centers and stations.

l__________ |_______ emigrants. settlement areas.

9 Drinking water for settlers at Chemical treatment and use of Purification and treatment to China national standard for Northwest design Insitutte, Project Management Bureau. | -31

initial stage of settlement freshwater from deep acquifers. drinking water standTads. drinking water: GB 5749-85 local health and epidemic 660 (D 'J

control stations. [ l 1

10 Infectious disease from Public health hygiene and |Physical screening of emigrants Control and eradication of Yumen City, Changma Project Management Bureau. | Xinvoluntary relocatees from inspection, disease control and before resettlement, regular epidemic diseases from township and village public l - tj

Changma reservoir tretment, health education for follow-up and treatment in Changma reservoir area into health and epidemic disease

relocatees resettlement area. new settlement areas. control centers and stations.

Item Identified Inpact Proposed Mitigating Measures Mitigation methodology and Target: Standards and level of Units reaponsible for: InvestmentNo. procesaea results expected (Y000)

Implem./Execution Supervision/Monitoring

fL9!)NGTERM PLAN

11 Surface and ground water Monitoring and anlyea at Set up monitroing points in China national standards Local Environmental Project Management Bureauquality changes resulting from regular intrvals Shule River Baain and sampling GB3S38-88 Claa I-M for monitoring stations, Northwest and Provincial Water RCsourCes 2955land reclamation and irrigation water for analyses according to snfacc water environment Insitute, Prov. Hydrological Burea u

specifications. quality Bureau

12 Changes of groundwater regime Monitoring and model Analyze data from observation Pre-debtrmmed optimum Provincial Water resources Project Management Bureau- levels, drawn down, yielda. simulation. Regulate and operation weila predict critical depth of groundwater Bureau and Provincial

groundwater extaction change tlhrgh modeling, for plant growth, preventing Geological mining Bureau.Regulab grt dwatr econdary soil ulinization andetraction nd recharge. dewetification.

___________ ___________ ___________ ~~~~~~~~~~~~~~~~~~~~~~~~144

13 Bio-ecological changs on plant Zoning and prolibtion of Public eduaction on various Compare against established Local Enviromental Project Mangemnt Bureauand nimals hmn activities through ptotction laws for baseline data. Aament hstitutc, Qilian and Provincial EPA

regulatory meauxe Develop e_viomnt, land, grsland, mouitain Protection Bureauew and altcnative eregy to famstry and wild animals

replace traditional fchiood Stresbdcn enforcement of theseenergy regulatio and lawh. Incee 192

coal supply, and psrnoe I-

altnat iw energy srces of solar, wind andnrne ga&

14 Aquatic bio-ecological changes To nonitor water quality and Oberw gowth ofalgae in Prevent eutrophication ofwater Shule River Water Convancy Project Mangement Bureauaquatic biota. resrvoir nd rivesr, and in resnvoir and riven. Cina Mangawmt Dept Yumen City and Provincial EPA

changes in docking nd spcies national sandard for fishesy and Amiu County Health and 55Of ilu water quality GB: 11607 - 89 Epidermic Station.

15 Micro-climate change Meterologiccal obsrvatios in Collection of meterological Compare to baseline data Yumnen City and Anxi County Project Management Bureau.the three irrigation districts data from pre-detennined sites collaeeted prior to start of Meterological Stations 33

and compare with baseline data. project development.

16 Induced eahquake Observation nd prediction nbtallation of intrments, LAnzhou Seismologic Reerach Project Management Bureau 8 I-'obsrvation, data aalyses, and Institue nd Jisyuguan and Lanzhou Eartquake 91 rt forecaating. Seismologic Observation InstitubA. t1______________ _ .Station..

Note:(a) No inveatment has been provided under the project as the concemed enwrprie ame required to bear the cost of effluent treatment

(b) No investment has been provided under the project as the concened enterpries and Yumen City Government are expected to bear the cost of treating this existing water pollution.

Gansu Hexi Corridor Project

1996 1 1997 1998 1999 2000 2001- 2002 2003 2004 2005

ID Task Name Q41Q1IQ20Q3lQ4Q1 102TQ31Q4QIQ203Q4Q1Q 103Q401QQ2lQ3lQ 4l QllQ2la3lQ4lQ1ll22Q3lQ 4lQ1i23Q Q2lQ3TQ4lQ1Q2Q3lQ4lQ1lQ21Q3Q4

1 I. SHORT-TERM PLAN

2 Treatment of constm. waste water .____

3 Disposal of Constrn Soild Waste .____

4 Control air pollution

6 Control of Noise pollution

6 Epidemic disease control among workers I7 Salinity level in Shungta Reservoir

18 Shiyou River water pollution

19 Disease control among migrants _

20 Disease control among reservoir relcoate

21 Drinking water for migrants

22F-.

23 II. LONG-TERM PLAN I

24 Surface/groundwater quality protection -_

26 Gorundwater level control

26 Biota Plant and Animal Protection _ ____ _ _

27 Aquatic bio-ecological protection

28 Micro-climate changes

29 Induced earthquake study --=-=--

30

31 III. ENVIRONMENTAL MONITORING .

32 Surface water quality _ -- -

Task Summary Rolled Up Progress :D

Project: Gansu Hexi Corridor Project Prges old pTsDate: 12/19/95 Progress Rolled Up Task

Milestone Rolled Up Milestone X

z a~~~~~~~~~~~~~~~~~~~~~~

10

10

*II I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~P ID0.4

Ip I~~~~~~~~~~~~~~~~ - 0


Estimated Costs and Annual Investment for Environmental Protection and ManaRement

Item/Description <- - - - --- --------- -- Investment by Year (Y' 0 }---------> Total Physical & Total

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1966-05 Price Cont- Item(Base Cost) igencies

Data Collection& Monitoring 880 832 872 894 922 958 924 1018 969 641 8910 3652 12562

Equipment & instruments 2086 2046 1146 2206 2076 1370 1245 880 880 880 14815 4462 19277

Installation & commissioning 157 157 157 157 157 157 157 157 157 157 1570 807 2377

Staff training 210 140 1212 275 1837 150 1987 1

Design, Supervision & Magm't 1680 990 790 640 600 480 480 480 480 480 7100 2883 9983

Total 5013 4165 4177 4172 3755 2965 2806 2535 2486 2158 34232 11954 46186

D 4La R:

ENVREHAB.XLS

GANSU IEXI CORRIDOR PROJECT

Rehabilitation of Source Areas after Emieration

Emigrating County Ten-acing & Tree Shrubs & Steep hill slope Steep,cult. land Total Area InvestmentBenching Planting Grass Planting to be closed for to be closed for to be Base

afforestation grass planting Rehabilitated Cost(ha) (ha) (ha) (ha) (ha) (ha) (Y'D00)

1. Li County 525 1050 350 875 700 3500 1886

2. Wudu County 374 747 249 622 498 2490 1342

3. Danchang County 330 660 220 550 440 2200 1186

4. MinCoamty 342 684 228 570 456 2280 1229

5. LinaxiaCounty 159 318 106 265 212 1060 571

6. HezhaCounty 48 96 32 80 64 320 172

7. JishiKbA County 189 378 126 315 252 1260 679

8. Donghxian County 578 1155 385 962 770 3850 2075

9. YonjinggCamty 663 1326 442 1105 884 4420 2382

10. LintanCounty 314 627 209 522 418 2090 1126

11. ZhouquCounty 237 474 158 395 316 1580 852

Total 3759 7515 2505 6261 5010 25050 13500

g |

.Yonitoring Results oRSurtace eater Quality inlong Tern Average wnd the Year of 1993

PH Hardness sS iro CCD BOD, NH " NO, NO:( pnenol C.N A, C,- Pb Cd Hg Cu Zn Oil F

~~~~~~~~V I F4 I i ~ I ¢!

L upbsD~ tr3LOnloDngterD 8-34 1n.04 1117.581 7.79 1i.0 1 1.21 0.17 I 0.94 0. 002 0o.ooOsIo. oooo.ooo7 o0.001 000110.0006 0.1 0.0051 01 1.07upstream .aierage 0(-_4_____________d_7_ I1a9

.19.93 7.91 2.25 i7.6 j .10.2 6 . i.S4 J. -03 0.-002 0.004 0.003 10.003- o 416.o 0 7i

1993 I 75.61 i~~~zi ____ I.1 *J ..~3 37 . u43II768005 7o 5 .01600200.0I I *. 7. 0 28

Cioobrstye 1|flong term 9.38 14. 78 7 34 6 . 5{IIC 14 .21 18.i59 4.51 |2.37 0.0237 0.000.0106|0.00201 1

a199 8.72 2.65 r3682.61 5.S 9.8 3.24 0;17 0.042 1 0.604 0.021 0.043 0.010 0.0199 .0017 .000070.04561 12.491.9.93 8.72 2 657 682. 6 5.5 f 9 1 1 £

.9 upstream ------- geer3 B.52 10 7. 8C1 2- S 1 8 ° 1_92 _ _ °-0I002 001 o. 003 27 0-001310- I 0 053

1993 8.18 8.14 11438.5 8. 7 2.1 0.47 |. 05 0034 0.020 0. 002 0.0120.005 ° 0.0327 .0041 0.0003 O. O5Sd 4.20

I ChiJin Reservoir lOng ter 8.43 35.89 525. 12 7.95C 2.67 1.36 0.32 1.40 0. 326 0 00 0.0012 0.002 0.017 0.0017 0.001o 10. 0947 0. 1080 0.76downstream average 1- -0020.0]004.00 0n* ____

1993 7.89 52.5 10. 1 2. 6 0.321 0.30 .022 0002 0.002 0. 009 3. 004 0. 0270 .. 0003C . 000020. 0162 2.30

I FrOrO-- ____ I r9rr[H433000.604J1ooTol(+Soo9llo3 ooChang9ia Headworks long term 8. 00d 13. 88 1175. 5 8.01l 1. 55 0. 55 004 060 0.)01 0.0005s 0.001 0. 002 0. 001 0.0055I10.000810. 0000o 0.0093 0. 10.Si 0. 224Shurcationgate average _ _

Shuleabes hisha.t song tera|, 6 ! 7.14 34.6? UQOC 1.25R| 1. 31| 0.06 1.23 0.014 0. 00051 0. | 0.0007 0001 041 0. 000 0. 044: 0 1349 !1. 02% ece ig b.,!n ter 17 76 6. 14 3-62 %.IO .2 1.73 __ _ _ _ 004 ... 001 _ _ _Z' southern side drainsaverage r-iI

Shumnota Reservoir long tero S. 34 31. 65 3. 1 0- 0 O. 0.0004 0.004 0.003 0.09 0.0 0. 00030.01800.140 0.40

Lipstreas iaeTg S.01 ! !ss j I !1 1oloo1 o001.2s.0so0vs001! 1 1p

Shuansta Reservoir long ter 8s.45 24.75 35.99 7.52 1.9 1.3. 41 0.003 0000 00 03 0.00 0300000.02 0. 51o.o00:lO.0 0.07831 0-44downstream Ler0.09 0.0a0020.05e04I Th~~~~~'a1T9 8 W44 8.10 I 0.010o 0. 002 o. 002 0. 134 024-L02A.03

Layout Diagram of Section Points for Items to be Monitored

____________________________El...___xi_NT_____T1

* CL,

[*r.L

1L1

TIst.mh.jgcaccat Jamie.

.. lw hI ,w r 'Ml 0 1_1P 1" *~ -" -

A.w P.M

'Rl|| ,learZ aStella * =0"1 b _sl fin Ww. ,

~~z inltl_ *kz * _1tl bbk gw g zd

_ 1- t.11 sell fsa wakll, m ab

6 ae. _aa,P,

- 137 -


ANNEX E

Summary of Involuntary Resettlement Action Plan

- 138 -

ANNEX E


Summary of Involuntary Resettlement Action Plan'for Chanqma Reservoir

General

1. The planning of a dam (Changma Dam) on the Shule River to store waterfor irrigation and hydropower generation dated back to the early 1960s.Inhabitants along the Shule River valley were aware of the proposed Changma Damand the local government has since restricted much of the economic developmentin the valley to be affected by the reservoir. The proposed Changma Dam, 55 mhigh with a crest length of 350 m, would create a reservoir covering about 12 km2

of water surface area with a total storage capacity of about 194 million m3.The reservoir would provide irrigation water to improve and develop a total ofabout 98,000 ha of cropland on the Shule River alluvial plain. Some 200,000 poorfarmers would be emigrated from upland resource poor regions in central andsoutheast Gansu and settled on the 54,000 ha newly developed irrigated land. Atotal of 131 families (566 persons) will have to be moved from the ChangmaReservoir area and resettled on a 5580-mu new resettlement site in the HuahaiIrrigation Area

Assessment of Land, People and Assets Affected

2. Based on the latest detailed engineering survey and investigation and(based on 1 in 5,000 topographic map), computation of backwater curve, a totalof 172 ha existing cropland and 131 families involving 566 persons in thefollowing three Shuixia village groups will be affected by inundation of theproposed reservoir.

Items Shuixia Shuixia Shuixia Total RemarksGroup 1 Group 2 Group 3

No. of family (nos.) 47 40 44 131

No. of people (persons) 226 169 171 566

Cultivated land (mu) 890.8 821.8 869.7 2582 4.56 mu_______ ___ ___ ______ _ _____ ______ per capita

No. of trees (nos.) 37248 21673 22568 81489

No. of fruit tree (nos.) 353 109 277 739

Large animals (hds.) 435 382 443 1260

Sheep (hds.) 1006 240 28. 1529

Pigs (hds.) 150 193 239 580

Poultry (nos.) 1980 1676 1746 5442

No. of rooms (nos.) 334 270 373 977

Buildup area (sq.m.) 6012 4860 5632 17586

Animal pan area (sq.m.) 17290 15855 10150 43295

Agri. machinery (nos.) 57 17 37 111

Agro-processing (nos.) 4 1 5 10

'\ For details see Resettlement Action Plan in Project File

- 139 -

35 kV power lines (km) 0.1 Strengthen

6 kV power lines (km) 1.65 Replaced

Low tension lines (km) 8.25 Replaced

Transformer (nos.) 4 30 KVA

Rural road (km) 6.4

Telephone line (km) 1.35

Mini-hydropower (nos.) 1 Replaced

Primary School (nos.) 1 138 T2

Policies, Laws and Regulations

The main policy objectives adopted by Gansu for the involuntaryresettlement are: (i) productive level and standard of living of relocateesshould not be lower than before relocation; and (ii) the rate of economicdevelopment and improving standard of living should be comparable to that of thelocal residents in the resettlement area. These policy objectives are in linewith that of the Bank's OD 4.30 on Involuntary Resettlement.

The principal laws and regulations governing the process of landacquisition and resettlement under the project are:

(a) The Land Management Law of PRC

(b) Implementation Regulations of the Land Management Law of PRC, StateCouncil Document No. 73 promulgated on January 4, 1991 and effective inFebruary 1992.

(c) State Council Document No. 74 on Regulations on the Land AcquisitionCompensation and Resettlement for Large and Medium-sized Water Conservancyand Hydro-electric Power Projects effective from May 1, 1991.

Consultation Processes and Participation

The inhabitants of the Changma Valley were aware of the proposedChangma Reservoir as early as 1960s when planning of the Changma Dam was carriedout. The local government has planned and controlled development in the valleyso as to minimize acquisition of cultivated land and relocation of people whenthe project is launched.

Close consultation was maintained between the Project Authority,Gansu Design Institute, Yumen City Government, Agricultural Commission, localgovernments of Changma Village and Huahai Township, and representatives ofaffected village groups. Over the period three alternative sites (Bijiantan,Nanqu Jiudui Dong and Xiahuizhuang) were considered jointly by the stakeholdersand beneficiaries for the resettlement. Xiahuizhuang was finally chosen for itsbetter land and water resources, and closer access (5 km) to existing communityand services in Huahai Township.

Resettlement Strategies and Alternatives

The main strategy is to ensure that living standard of the affectedpeople is not lower than prior to resettlement and that there will beopportunities for further enhancement of their economic well-being comparable tothat of the host population. To achieve this, affected households will beresettled on land-for-land basis (4.56 mu per capita) and given housing lots forbuilding of their new houses. To further develop their economic well-being,affected households will participate in the collective production and managementof 2,000 mu commodity crops (licorice, orchards, livestock, etc), small-scaleenterprises and services. The resettlement village will be operating as a basic

- 140 -

unit sharing profit and losses, thereby minimize risk in the production andeconomic development activities.

Compensation Standards and Norms

Based on the "Design Specifications of Inundation Treatment of waterConservancy and Hydro-power Projects (SD130-84)" full replacement costs have beenconsidered for compensation of land acquisition, relocation, infrastructure,services, housing and moving expenses. In addition, a multiplier of 4 has beenapplied in determining the compensation for land acquisition based on the averageannual output values of the last three years, and a multiplier of 3 forresettlement compensation in accordance with the provisions of "Regulation ofCompensation for Land Acquisition and Resettlement in the Construction of Largeand medium-sized Water resources and Hydro-power Projects". The average valueof three years output value (1992-94) is Y462.86 per mu as shown in Annex E Table1. This average value has been used in determining the compensation for landacquisition (x4) and resettlement (x3) per mu.

Evaluation for Compensation

The amount of compensation evaluated for land acquisition,resettlement, replacement for infrastructure and services are itemized in AnnexE Table 2. The total amount is Y17.5 million, including expenses for trainingof relocatees, management and contingencies.

Compensation and Use of Funds

The total amount of Y17.5 million compensation assessed will be usedfor the following purposes:

(a) Development of resettlement site Y8,370,000 (Table 3)(b) Payment to local government for

reconstruction of infrastructureand services affected in theChangma Reservoir area Y 467,800

(c) Cleaning of reservoir area Y 15,000(d) Direct compensation payment

to affected households resettled Y5,750,000(e) Transportation in relocation, and

compensation for loss of earning Y 191,200(f) Management, training, monitoring

and physical contingency Y2,720,000

Total Y17,513.000

Policy Incentives

Subject to government approval, the policy incentives proposed forthe relocatees are as follows:

(a) supply of building materials at State-controlled prices;(b) 50% subsidy for production fertilizer for the first four years;(c) exemption from or reduced payment of taxes on land, housing lot,special agricultural and forestry products for an initial period of years;(d) subsidized tariff for electricity supply;(e) exemption or reduced irrigation water charges for the initial periodof years; and(f) preference for employment in enterprises and enrollment in school forchildren.

Implementation Schedule

Initial development of the resettlement site will begin in 1996 and

- 141 -

the actual physical relocation and resettlement of the affected households willbe carried out in two phases, 1998 and 1999, to be completed before flooding ofthe Changma Reservoir in December 2000. The implementation schedule is shown inAnnex E Table 4.

Management and Supervision

The Yumen City Government through its Resettlement Office will beprimarily responsible for the implementation and management of the resettlementprogram under the direction of the Project Management Bureau (PMB) . One stationeach will be established in Changma Village and the Huahai Township to carry outthe relocation and resettlement, and ultimate rehabilitation in the resettlementarea. The organization structure is shown in Annex E Chart 1. Funds will beallocated by PMB to the Yumen City Government based on the planned programsapproved. The planned annual expenditures are shown in Annex E Table 5. Thefunds will be administered by the Yumen City Government according to normalgovernment financial procedures and regulations.

Monitoring and Evaluation

Monitoring and evaluation of the people resettled will be carried outby National Research Center for Resettlement (Hehai University) in collaborationwith Gansu Design Institute for a period of five years or until they aresatisfactorily rehabilitated. The scope and content of M&E are given in theAppendix to the main RAP. Periodic M&E reports will be submitted to the ProjectManagement Bureau and the Bank/IDA for review and follow-up actions.

GANSU HEXI CORRIDOR PROJECTEstimated Average Output Value Pcr Mu in Submergcd Arca (1992-1994)

ChanEma Rcservoir

1992 ----- > <-------------1993-----------------------> < 1994-Crop Yield/mu Unit Price Area Valuc Yield/mu Unit Price Area Value Yield/mu Unit Pricc Area Valuc

(kgtmu) (Y/kg) (mu) (Yuan) (kg/mu) (Y/kg) (mu) (Yuan) (kg/mu) (Y/kg) (mu) (Yuan)

Grain Crops:

Wheat 486 1 1860 903,960 505 1.05 1860 986,265 303 1.6 1860 901,728

Bean 328 0.98 103 33,108 342 1.03 103 36,283 205 2.3 103 48,565

Pca 175 1.24 103 22,351 178 1.27 103 23,284 107 2.3 103 25,348

Oil crops: 173 2 516 178,536 182 2.2 516 206,606 109 3.9 516 219,352

Total 2582 1,137,955 2582 1,252,438 2582 1,194,992

Average value/mu cropped 440.73 485.07 462.82

Average for 1992-1994: 462.87

Note: The lower 1994 yields were affected by pest, but unit prices were higher at free market prices.

D XI-. t'

- 143 - ANNEX ETable 2

GANSU HEXI CORRIDOR PROJECTCost Estimates for Land Acquisition, Compensation, Relocation & Resettlement

Chanuma Reservoir

Item Unit Unit Cost Quantity Value Remarks(Yuan) (Y'000)

I. Acqulsitlon & ComDensationLand acquisition mu 1,851.44 2582 4.780 Unit cost = Base rate Y462.86 x 4Compenation for

Loss of Cultivation mu 1 388.58 2582 3,585 Unit cost = Base rate Y462.86 x 3

Sub-total I 8,366

II. Compensation for SubmerFed AssetsStanding crops mu 462.86 2582 1,195 Unit cost = Base rate of Y462.86Residential houses sq. m. 165.00 17586 2,902Subsidiary buildings sq. m. 2.00 43295 87Trees nos. 15.00 81489 1,222Fruit trees nos. 200.00 739 148Graves removal nos. 500.00 393 197 Based on average 3 graves/family

Sub-total II 5,750

III. Compensation for Infratructure and AmenditiesElectricity supply system:10 kV H. T. lines km 30,000.00 1.65 50 Removal35 kV H.T. tines m 100.00 100 10 Only strenthening requiredLow tension lines km 20,000.00 8.25 165 RemovalTransformers 30kVA set 1,000.00 4 4 Removal and re-installed.

Sub-tolal 229

Rural road (gravel) km 1,000.00 6.38 6Farm road km 500.00 6.98 3Communication lines km 6,000.00 1.35 8

Sub-total ill 246

IV. Compensatlon for ServicesSchool sq.m. 165.00 138 23Village admin. office sq. m. 165.00 270 45

Mini-hydropwer station nos. 100,000.00 1 100 50kw capacity

Sub-total IV 167

V. Relocation TransportationTransporting belonging tons 80.00 1965 167 160 km x YO.5/km-ton

VI. Other Compensation & ExpoensesLost of worked days man-day 10.00 2830 28Medical expenses person 10.00 566 6Reservoir area clearing man-day 10.00 1500 15

Sub-total VI 49

Sub-total I to VI 14,736

Vii. Administratlon & MananementAdministration sum 295 Assumed at 2% of total base costSurvey and design sum 405 Assumed at 2.75% of total base costSupervision sum 368 Assumed at 2.5% of total base costTraining sum 147 Assumed at 1% of total base cost

Sub-total ViII 1,216

Vil. Physical Contingency sum 1,474 Assumed at 10% of total base cost.

TOTAL 17,425

- 144 -

ANNEX E

Table 3

GANSU HEXI CORRIDOR PROJECTRehabilitation and Construction Costs at Xiahuizhuang Resettlemnet Site

Item Unit Unit Price Quantity Amount Remarks(Yuan) (Y'000)

L Land PreparationCropland for household mu 210 2582 542.2Forest belts mu 210 300 63.0Grassland mu 210 700 147.0Orchard base mu 210 1000 210.0Licorice base mu 210 1000 210.0Village residential area mu 210 333 69.9

Sub-total 1242.2

IL Production Base DeveloymentOrchard base mu 732.5 1000 732.5Licorice/hop base mu 700 1000 700.0Grassland mu 350 700 245.0Forest belts mu 350 300 105.0Fertilizer subsidy mu 60 2582 154.9

Sub-total 1937.4

IIL Construction of InfrastructureImigation facilities mu 200 5582 1116.4Internal access roads km 60000 8.63 517.8Main road to village km 150000 6 900.0 Gravel road, 6 m wideWater supply sum 706.0 Including tubewell, tower tank, pipeElectricity supply: system to households.

H.T line & transformer km 60000 6.5 390.0 New installation.L. T line & transformer km 30000 10 300.0 New installation.

Comnmunication line km 10000 6.5 65.0 New installation.

Sub-total 3995.2

IV. Construction of Social ServicesSchool, clinic & village office m2 300 1900 570.0Office/school equipment 200.0Playground m2 20 10000 200.0Fencing to relic site sum 50.0

Sub-total 1020.0

Sub-total I to IV 8194.8

V. Physical Contineency sum 532.7 Assumed @ 6.5% of total base cost

TOTAL 8727.4

Resettlement Implementation Plan of the Changma Reservoir4 151 - 1391

ID Task Nwne Duration Start Finish Qtr I Qtr 3 Qtr I Qtr 3 Qtr 1 Qtr3 J trl Otr3 | Qtr I t1 | 3

1 1 Resetmnt huplenhatlo Plan of the Changnu 21.6Sw 717195 34299Reserwvoir

2 1.1 The odskide work of hnplemtation and making 17w 7/71S5 11/S2/3repod _

3 1.1.1 Report -Program>> to Yumen city 1w 7/7/95 7/13/95

4 1.1.2 To introduce -Program-> to migrants or the 1w 7/21/95 7/27/95

6 1.1.3 To set To Municpal Rewtent Office 1w 10/27/95 11/2195

a 1.1 4 Ascertain the izwesators for the Dam area 1w 10/27/95 11/2/95

7 11_ 5 To.astn thestaffsofthe seftemertama 1w 10/27/95 11/2195

I 1. 1.6 To acquire the opinion of sarting capital 1w 10/27/95 11/2/56

9 1.1.7 To compile the report of the implntation plan ow 7/7/95 8/31/95

10 1.1. Togooncomputers 1w 8/25/ 8/31/95

11 1.2 To set up mnual of copnsation for each 7w 111131/6 12/23963Ihousehold U

12 1.2.1 Preparatory work 1w 11/13/95 11/17/95

13 1.2.2 The measure of the rooms 3w 11/20/ 1 2895

14 1.2.3 To verify the cuiivated land 3w 12/11/95 12Q2995

15 1.2.4 To verity the areas of auxiliary buildings 3w 12111/95 12/29/95

16 1.2.5 To veriiy the ree (including th fru trees) 3w 12/11/96 12|29/ 96|

17 1.2.6 To venfythe graveland 3w 12/11/95 12/29/95 .

13 1.2.7 To verify pig and small liestocks 3w 12/11/95 12/29/95

19 1.2.8 To verify old-aged, sick and disabled, and poorest 3w 12/11/95 12/29/95households_ :

Task Summary Rolled Up Progress _

Pro,ec: Resemrent Impknfwnbtion PrgesRNdU "

Date: 311/96PrgesRbUTk

lMsoien Ro_ Up M lbton

ANNEX E Tablg 4 Sheet 2

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Resettlement Implementation Plan of the Changma Reservoir4 1 5966 1993

_D Task Nu Duration Start Finish Qtr I Qtr3 1 Qtr3 Qtr 3 Otr Qtr 3 Otr I Qtr3 Q Qtr3go 1.5.3.4 To publiize the organ of the commites 7w 1/3/96 2/21/96

69 1.6.4 Shops 39w 1/1/96 9127/96

60 1.5.4.1 The preparin 24w 1/1/96 6/14/96

61 1.5.4.2 Shops 1 15w 6/17196 9/2796_

62 1.5.4.3 Shops 2 15w 6/17/96 9127/96

63 1.5.4.4 Shops 3 15w 6/17/96 9/27/96

64 1.5. 4.5 Storehouse 15w 6/17/96 W27/96

65 1.5.4.6 Advertise for staffs 1w 9/239 9/27/96

66 1.6 The constuction of reskdntial site 106w 2126/96 3/1S:3

67 1.6.1 Phase I 53.3w 2126/96 3/6/97

69 1.6.1.1 Theprpwriion 21.pw /W26 7/24/961

69 1.6.1.2 The copnseaai for rooms 2w 7/25/96 8/7/96

70 1.6.1.3 The constructio of the rooms lOw 8/8196 10/16/96

71 1.6.1.4 The miWants move into new houses lOw 10/17/96 12/25/96

72 1.6.1.5 The extension of the highways 4w 2f7/97 3/97

73 1.6.1.6 The compktion of phase I Ow 3/6/97 3/6/97 .

74 1.6.2 Phase II 34.8w 711/97 3/6198

76 1.6.2.1 The prepation 2.6w 7/8/97 7/24/97

76 1.6.2.2 The compensation for rooms 2w 7QW7 8/7/97 .

Task _ rtSummary Rdbd UpProgress

Project Ree311 nt/%lrent Progress Rolled Up Task _ -I

Milestone *Rolled Up Milestone /D

Resettlement Implementation Plan of the Changma Reservoir4 i] 1996 1998

ID Task Nane Duration Start Finish Qtr 1 Qtr 3 Qtr 1 Qtr 3 Qtr 1 Qtr 3 Qtr 1 Qtr 3 Qtr 1 Qtr 377 1.6.2 3 The construction of the rooms lOw 8/8/97 10/16/97

73 1.6.2.4 The migrants moyve into new houses 1 Ow 10/17/97 12125/97

79 1.6.2.5 The extension of the highways 4w 2/9198 3/6/98

80 1.6.26 The completion of phase b1 Od 3/6/9 3/6/98

e1 1.7 The construction of econonmic development 169w 7/7t95 1011t98

82 1.7.1 The management of windbreak forest 169w 7/7t95 10/1/98 _

83 1. 7.2 The construction of 1000 mu of orchard 169w 7/7/95 10/1/98 _ _

34 1 7.3 The construction of 1000 mu licorice roots 169w 7/7/95 10/1 t98

86 1.7.4 The construction of household farmland 169w 7nt95 10/198

86 1.7.5 The construction of grassland 169w 7/7/95 10/1t98 _

87 1.7.6 The construction of toilets and livestocks 106w 9/20/96 10/1 t -98St 1.7.7 The completion of the construction of economic Od 10/1/98 10t1/98

_devebpment89 IA Techncal training 8w 4/1317 1/12/97

90 1.8.1 Adaptive technical training 8w 4/18197 6112/97

91 1.8.2 The training for technical backbones 8w 4/1 97 112/97

92 1.8.3 The training for specialized households 8w 4/18/97 6/12/97

93 1.9 Technil assistance 3w 10/1197 11/26197 t

94 1.9.1 The assistanice from departments concerned 8w 10/1/97 11/25/97

95 1.9.2 To provide for planning assistance for households 8w 10/1/97 11/25/97 c

4-.

Task Summary Rolled Up Progress En

Projec Resetiment mpbmenationProgress Rolled Up Task t

Milestone *Rolled Up Milestorne v

Resettlement Implementation Plan of the Changma Reservoir4 11996 11999

ID Task Name Duration Start Finish tr 1 |tr3 | Qtr I Qtr 3 Ctr 1 Qtr 3 Q Qtr1 I Qtr 3 Qtr 1 Qtr 396 1.9.3 Technical assistance of aquaculture 8w 10/1/97 11/25/97

97 1.10 Supervision and evaluation 122.6w 4/18197 8/24/99

98 1.10.1 The progress of resettlerment Sw 4/19897 6/12/97

99 1 .10. 1.1 The progress of the ascertainment of land in 8w 4/18/97 6/12/97settlement site

100 1 10 1.2 The progress of the construction 8w 4/18/97 6/12/97

101 1.10.1.3 The progress of the developing tems 8w 4/18/97 6/12/97

102 1. 10. 1.4 The progress of the removing of the specialied 8w 4/18/97 6/12/97facilities

103 1.10.1.5 The progress of moving 8w 4/18/97 6/12/97

104 1.10.2 The arrival of the capital Sw 6/13/97 3/7/97

105 1. 10 .2.1 The arrival of the capital 8w 6/13/97 8/7/97

106 1. 10 .2.2 The investment of capital and the U#e 8w 6/13/97 8/7/97

107 1. 10 .2.3 Social and economic effect of the capital 8w 6/13/97 8/7/97

10S 1.10.3 The settement of productlon SW 5/6/99 6/29893

109 1. 10.3.1 Target of production settlement SW 5/5/9 6/29/98

110 1. 10 .3.2 Comparison of the condition of production before and 8w 515/98 6/29/98after fth move

111 1. 10 .3.3 The comparison of the target of economy before and 8w 5/5/98 6/29/98after the move

112 1.10A The settnt of life 3w 5/6/99 6/29199

113 1. 10.4.1 The target of life settement 8w 5/5/99 6/29/99

T as k Summary Rosed Up Progre/s 6Ft

Project: Resetement ImpWrmatimon Progres Up Task a

mMdollsoe *Roled Up Milestone

Resettlement Implementation Plan of the Changma Reservoir4 1996 ( 1998

ID Task Name Duration Start Finish Qtr 1 Qtr 3 Qtr 1 Qtr 3 Qtr I Qtr 3 Qtr 1 Qtr 3 Qtr Qtr 3

118 1.10.4.3 The comparison of economic income 8w 5/5/99 ./29/99

116 1 .10.4.4 The comparison of the main life index 8w 5/5/99 6/29/99

117 1.10.6 The operation of the irplementation organs and 8w 6/30/99 8/24/99benefit

118 1.10.5.1 The set of the organization 8w /30/99 8/24/99

119 1.10.5.2 The setting of the staff members 8w 6/30/99 8/24/99

120 1.10.5.3 Economic resources and income 8w 6/30/99 8/24/99

121 1 .10.5.4 The operation of administrative system and efficiency 8w 6/30/99 8/24/99

122 1.11 The construction of the Reservoir 11w 317/97 5/22/97

123 1.11.1 The clearing of the dam floor 11w y7197 522t97

124 1.11.2 The enforcement of transmission lines 4w 3/7197 4/97

125 1.11.3 The move and building of the transmission lines 4w 4/497 5/1/97

126 1.11.4 The compensation for small hydropower station 2w 317/97 WOW .

127 1.12 The completion of resettlement Od 8/2499 8/24/99

>4

F-

H

Task Summary _ Roiled Up Progress

Project: Resettlement Implementation P o UTDate: 3/1/96 ~~~~~~Progress Roiled Up Task5Date: 311/960

Milestone Rolled Up Milestone 0-_


Annual Physical Qauntities and Investment

Iten/Description Physical Quantiy Annual investment (YOOO) TotalUnit 1996 1997 1998 1999 2000 1996 1997 1998 1999 2000 Investment

A. LAND LEVEUNG1. Household cuft. land mu 2582 542.0 542.0

2. Windbreak mu 300 63.0 63.0

3. Grassland mu 700 147.0 147.0

4. Licorice mu 1000 210.0 210.0

5. Orchard mu 1000 210.0 210.0

6. Residential site mu 333 70.0 70.0

Sub-toto (A) 6915 124Z0 12420

B. PRODUCTION BASE1. Orchard mu 1000 1000 1000 1000 183.2 183.2 183.2 183.2 732.8

2. Lcorice mu 1000 1000 1000 1000 175.2 175.2 175.2 175.2 700.8

3. Grassland mu 700 700 700 700 61.3 61.3 61.3 61.3 245.0

4. Windbreak mu 300 300 300 300 26.3 26.3 26.3 26.3 105.0

5. Fertizer subsidy mu 2582 2582 2582 2582 38.7 38.7 38.7 38.7 154.8

Sub-tota (B) 5562 6J52 5682 6682 484.6 484.6 484.6 484. 19311.4

C. NRGA TION SYSTEM mu 5662 1116.4 1116.4

D. ROADS WiHlN VILLAG km J.64 678.0 678.0

E. INFRASTRUCTURE1. Main access road km 6 892.4 892.42. Water supply sum 706.0 706.0

3. Electricity supply 0.0(a) H.T. Power lines km 6.5 390.0 390.0

(b) L.T. power lines kmr 10 300.0 300.0

4. Telephone line sum 65.0 65.0

Sub4otal (E) 2353.4 2353A

F. SERVICES m a,

1. School/clinic 19000 570.0 570.0 m H

2. Playground 10000 200.0 200.0 >C

3. Fumiture 200.0 200.0

4. Fencing 50.0 50.0

Sub4otal 1020.0 1020.0

Item/Descnption -Physical Quanty <- -Annual investment (Y'000)- TotalUnt 1996 1997 1998 1999 2000 1996 1997 1998 1999 2000 Investment

G. HOUSEHOLDS RESETTLEMENT 4500.0 748.0 250.0 250.0 6748.0

H. TRANSPORTATION 9.6 95.6 191.2

1. RECONSTRUCTION1. Cleaning of reservoir 15.0 15.02. 35 kV lines 10.0 10.03. Telphone relocating 8.1 8.14. Comp. for mini hydro 100.0 100.0

Sub-tl d) 133.1 133.1

J. OTNERS1. Administration 58.1 58.1 58.1 58.1 58.1 290.52. Survey & design 431.0 431.03. Supevsin & monitorng 73.8 73.8 73.8 73.8 73.8 369.04. Training of PAPs 74.0 74.0 148.0

Sub-obl (G) 636.9 206.9 131.9 131.9 13t9 123&5

HK CONTNGENCIES 2000.0 ,

TOTAL 1878.9 10258.3 1460.1 362.1 999.6 17559.0

r) u1t>jrt (DA

t- n 1eœ

- 154 -


ANNEX F

Summary of Voluntary Emigration and Settlment Plan

- 155 -

ANNEX F

CHINAGANSU HFXI CORRIDOR PROJECT

Sunmarv of Voluntary Rmiaration and Land Settlement Plan 1

Poverty Background

1. Gansu Province has about 4.2 million people living below thethreshold of poverty in 41 officially identified poor counties, mostly locatedin central and south Gansu. These counties are located in resource poor areaswith an increasing population to support in a much degraded environment. Insome of the remote townships, the poor people are unable to feed themselvesand have to rely on government for relief annually. The economic situationsof the 41 poor counties are summarized in Table 1. Since 1983, with theestablishment of Two Xi Commission in Gansu, poverty reduction programs havebeen undertaken to help these poor people. The programs included out-migration and settlement in better resource areas in Hexi Corridor and otherregions of the province. To-date, a total of 337,000 people have settled inHexi Corridor and other irrigated areas in the Yellow River valley. Althoughthe Two Xi poverty reduction programs have been successful, but the scale wasquite modest due to limited resources. Therefore, Gansu has proposed a major10-year program to settle 200,000 poor people from central and south Gansu toHexi Corridor and at the same to develop large tract of cultivable land forproduction of grain and commodity crops to ease current deficits faced by theprovince.

Selection Criteria

2. The selection criteria used are as follows:

(a) County/Township Counties and townships planned for emigration arebased essentially on their poor economic situations (per capita income of lessthan Y300 and grain production of less than 150 kg), have not benefitted orsubstantially benefitted from the Two Xi poverty reduction programs, degradedenvironments with most of the cultivation on steep land, and high density ofpopulation. To achieve maximum impact, preference has also been given tothose counties and townships that would form a contiguous group.

(b) Emigrants Emigration will be strictly voluntary by application fromrural people residing within the planned townships. Selection of prospectiveemigrants will be based on a two-stage selection criteria established below:

First Stage:(i) per capita income of less than Y300 and grain production <150 kg;(ii) at least two workers in the household with the head of thehousehold between the age of 18 and 50 years;(iii) at least two years of primary education or acceptable literacylevel (relaxed for minority applicants);(iv) experience in agricultural production; and(v) in good health, mentally sound, and not physically handicapped.

Second Stage:(i) per capita income less than Y150 and grain production <50 kg;(ii) demonstrate intensive desire to emigrate;(iii) 75% of the existing cultivated land is on slope above 25 degree;(iv) possess junior middle school education, technical skill andvocational training; and

1\ For details see "Report on Implementation of In-Migration Settlement" inproject files.

- 156 -

(v) demonstrate pioneering spirit and leadership.

3. The second stage criteria will only be used in the event thenumber of applicants far exceeded the number of places available. Some 101 ofthe emigrants with higher incomes and possessing high motivation and technicalskills will also be specially selected for early settlement to serve as leador demonstration farmers to other migrants. Preference will be given tominority applicants to fill the planned number of minority emigrants for eachtownship. The literacy level requirements for minority applicants will alsobe somewhat relaxed in view of their lower literacy level.

Counties/Townships Selected for Emigration

4, The selected eleven counties covering 95 townships with thenumbers of planned emigrants and minority emigrants for each township areshown in Table 2. The number of emigrants indicated for each township isstrictly for planning purposes only. The actual numbers of emigrants and thevillage groups will only be determined after emigration applications have beenreceived and processed. However, flexibility will be maintained in the finaldetermination of number of emigrants between village groups under eachtownship, and also between townships in the event the planned number ofemigrants cannot be filled. The total number of emigrants planned is 200,000persons with 50,000 (25%) from minority groups.

Consultation and Participation Processes

5. There is over-whelming enthusiasm to emigrate to Hexi Corridor inview of the better economic prospects. The planned 200,000 people representthe optimum number of new migrants that Hexi Corridor will be able toaccommodate with the resources to be developed under the project. Thestakeholders in the source areas (county and township governments) as well asthe host governments (Anxi County and Yumen City) have been closely consultedin the planning and design of the emigration and settlement plan. Thestakeholders will also be represented in the advisory and consultativecommittees and groups to work closely with the project implementationauthorities. At the grassroots level, village emigration/settlement groupswill be formed to inform and receive applications from intending emigrants.Representatives of emigrants, including local community and religious leaders,will be included in these village groups.

6. A systematically planned participatory process will be used toinform and involve the people in the source areas. The villageemigration/settlement groups will use mass media to inform the people of theplanned emigration and settlement programs. This will include radiobroadcast, public meeting, notification, handouts, visits to settlement areasby emigrant representatives, and talks by successful immigrants in their ownoriginal villages.

7. Each emigration applicant will receive an information package,informing him of the emigration and settlement programs, prospects, risks,government assistance in emigration and settlement, land allocation and lease,infrastructure and services provided in the settlement areas, incentives andpolicy preferences for immigrants, returns expected by government, emigrant'sresponsibility, default and penalty. Details of application, processing andselection procedures will also be included in the information package.

New Settlement Planned in Project Area

8. Sixteen new townships/sub-farms have been planned in threeirrigation areas (Changma, Shuangta and Huahai) in Shule River Basin under theproject. Details are given in Table 3. Under these 16 townships/sub-farms160 administrative villages will be established, each with 5 to 10 residentialvillage groups containing 250 - 300 families each. Each township/sub-farmwill have a population of 12,500 - 13,500 people. During the initial stage of

- 157 -

settlement, basic education (primary and secondary schools) and healthfacilities will be provided by the project to each township and village.Later, as the settlement areas stabilize and grow, the local governments willprovide other necessary amenities and services.

Minority Emigrants

9. The main minority groups in Central and Southeast Gansu are theDongxiang, Islamic Hui and Tibetans. No separate settlement plan has beenproposed for the minority emigrants, but they will enjoy the same economicbenefits as the Hans. However, provisions of the Bank OD 4.20 on IndigenousPeoples have been considered in the settlement programs to ensure that theminority groups will have their socio-cultural traditions retained as far aspossible. For this purpose, major minority groups will be settled in onecommunity according to their wishes. One township will be exclusivelyestablished for the Dongxiang minority emigrants and 10 villages for theIslamic Hui emigrants. Minority community and religious leaders will serve onthe local township and village settlement groups to help to resolve any issuesrelating to minority groups. Minority migrants will also enjoy the sameincentives as the Han migrants in addition to the current government policypreference given to minority people in employment, enrollment in schools forminority children, and exemption for payment of school fees and text books.The demographic and socio-economic comparisons between the main minoritygroups and the Chinese Hans, represented by typical emigrating counties, aresummarized in Table 4.

Settlement Subsidies

10. For each emigrant, the government will provide the followingsubsidies over the period of two years:

Direct subsidy to emiqrants(a) Relocating expenses Y350(b) Construction of house 400(c) Purchase of production inputs 90(d) Purchase of agricultural tools, etc 60(e) Purchase of coal for heating, cooking 100(f) Water supply 60(g) Electricity 40

Sub-total Y1.100

Indirect subsidy for amenities and services(h) Primary and secondary schools Y272(i) Health facilities 42(j) Tubewells 19

Sub-total Y333

Total Y1.433 oer capita

11. In addition, the cost for management and monitoring of theemigrants is estimated at Y31.5 per capita, excluding the cost of new migrantstraining estimated at YB.5 million for 7,200 migrants in about 300,000 person-sessions. The overall total settlement base cost is estimated at Y292.9million for 200,000 people or Y1,465 per capita. In addition to the abovefinancial subsidies, all migrants will be exempted from payment of taxes(land, agricultural and forestry products) and rent for the first three yearsof their settlement.

- 158 -

Land Distribution & Lease to Settlers

12. In the settlement areas, each migrant will be allocated basic 2.0mu irrigated land on land use contracts for 30 years without payment (about 10mu or 0.67 ha per household of five) for crop cultivation, beside 534 m2 forhousing and 667 m2 for fruit tree and vegetable gardens. In addition, eachmigrant will also be eligible to lease additional 1.5 to 2.0 mu (0.1 - 0.133ha) of land with phased rent payments; zero for 1st - 3rd year, Y75 per mu for4th - 6th year, and Y150 for 7th - 10th year. After the 10th year, the leaseis subject to negotiations and renewal. Larger family farms at 10 ha perhousehold will also be promoted, but the number will be limited to 150households.

Training of New Migrants in Settlement Areas

13. New migrant farmers from central and southeast Gansu settling inHexi Corridor will have no experience in irrigated agriculture, multi-croppingsystems integrated with livestock and forestry in a totally new environment.They will need training in irrigation techniques, multi-cropping, livestockand forestry production systems. An integrated training plan has beenprepared by a special working group appointed by the Project Management Bureau(PMB). The detailed training program is given in Table 5. It will cover7,200 township and village technical staff and lead farmers, and about 300,000person-sessions for general farmers on various topics. The total estimatedcost is Y8.44 million over the a 10-year period. The working group has beenretained to supervise and monitor the implementation and performance of thetraining plan.

Women Migrants in Development

14. Women migrants would be encouraged to participate in the projectdevelopment activities. Special interventions have been designed to cater totheir specific needs. These are summarized in Table 6. The programs includespecific targets for employment in the public sector and service sectors,construction, rural enterprises, and financial assistance in the developmentof small family-run business and cottage industries. Women migrants would begiven preference in obtaining credit under the project' revolving fund of Y15million. It is projected that by the end of the project implementation periodsome 4,000 women migrants or about one third of the total women migrants wouldhave received vocational training. The performance and impact of womenparticipation in project development would be monitored based on the programindicators in Table 6.

Estimated Costs for Settlement

15. The total base cost for settlement is estimated at Y292.9 million(Y489.9 million including physical and price contingencies). The itemizedcosts and the planned investment over a 10-year period are summarized in Table7.

Settlement Management

16. The annual emigration and settlement programs, approved by theProject Management Bureau, will be implemented and managed by the existingCounty Settlement Offices (CSOs) in each of the eleven emigrating counties incentral and southeast Gansu and the two host county/city responsible for thenew settlement areas in Hexi Corridor. The respective CountyEmigration/Settlement Committee will sign annual contracts with the PMB andsupervise the CSO for the implementation. Funds for the emigration andsettlement based on approved programs will be allocated annually to thecounty/city governments by the PMB. The overall organization structure forthe implementation and management is shown in Chart 3 of the SAR.

- 159 -

Monitoring & Evaluation

17. A comprehensive monitoring system will be established under theproject to be operated by the Demographic Research Institute of the LanzhouUniversity in Gansu Province. The system will be used to screen and selectemigrant applicants based on weighted criteria and to create a data base ofthe emigrants selected. A 10% sample size of the migrant households will betracked annually to monitor their socio-economic progress and compare theirperformance against the planned targets. The annual monitoring and evaluationresults will be used by the project management authorities in the planning ofprograms for the subsequent years and also for the Mid-Term Review exercise tobe conducted for the project in 1999. More details of performance targets andimpact monitoring are given in Annex H.

- 160 - ANNEX FTable 1

GANSU HEXI CORRIDOR PROJECTRanking Order of 41 Poor Counties and Regionsby Per Caoita Grain Production and Net Income

Serial County/Region Per Capita Year 1983 Per capita Year 1993 RankingNo. Grain Net Income Grain Net Income order

(kg) (Yuan) (kg) (Yuan)

1 Yu Zhong 307 200 308 604 12 Yong Deng 182 163 298 551 63 Hui Ning 264 166 262 405 284 Jing Yuan 218 198 312 540 85 Jing Tai 363 175 515 552 56 Ping Chuan 231 267 246 501 127 Qin An 175 138 242 504 118 Gulang 298 113 330 428 269 Tian Zhu 210 111 169 457 22

10 Dingxi 386 182 367 562 311 Tongwei 237 162 295 487 1812 Longxi 202 195 265 558 413 Lin Tao 253 196 335 554 714 Zhuanglang 234 166 264 496 1415 Jing Ling 273 169 328 498 1316 Hua Chi 404 190 452 543 1017 Huan Xian 223 174 300 491 1618 Yong Jing 317 239 317 336 3719 Dong Xiang 230 140 222 282 4120 Qing Yang 224 250 381 585 2

21 Qingshui 238 173 397 488 1722 Gan Gu 167 218 263 512 923 Wu Shan 162 212 237 466 2124 Zhangjiachuan 169 198 264 431 2425 Wei Yuan 238 200 302 469 2026 Zhang Xian 211 126 398 471 1927 Min Xian 156 215 181 358 3528 Xi He 181 200 316 393 3029 Li Xian 214 183 229 337 3630 Kang Xian 231 214 302 299 39

31 Wu Du 155 220 203 377 3232 Wen Xian 198 207 285 425 2733 Dang Chang 146 214 164 286 4034 Lin Xis 263 270 270 430 2535 Kang Le 308 238 320 398 2936 Guang He 254 230 275 436 2337 He Zheng 242 144 240 368 3438 Jishi Shan 155 188 215 301 3839 Lin Tan 182 240 203 370 2240 Zhou Ni 154 164 170 493 1541 Zhou Qu 127 279 192 380 31

Note: Boxed in counties are selected emigrating counties.

- 161 - ANNEX FTable 2

GANSU HEXI CORRIDOR PROJECT Sheet 1Basic Statistisc of Emigratina CountleslTownshlD and Planned Emlarants

County/ Total Minority Grain Prdn Income % of with Arable No. of As % of Of which:Township Population Population per capita per capita Income Land emigrants Total minority

<Y300 per capita planned Population emigrants(person) (person) (kg) (Yuan) (%) (ha) (person) (%) (person)

1. DongxlangChuntai 7,472 7,472 185 253 63.3 0.136 2,000 27 2,000Luishu 6,174 6,174 164 251 56.0 0.118 1,500 24 1,500Yanling 5,169 5,169 141 255 55.9 0.117 1,200 23 1,200Wanji 8,708 8,708 238 255 57.4 0.171 2,500 29 2,500Beiling 4,561 4,561 147 253 62.1 0.149 1,000 22 1,000Lingquan 12,056 12,056 156 242 64.8 0.160 3,600 30 3,600Kaole 6,674 6,674 145 251 68.2 0.121 1,500 22 1,500Dongling 5,575 5,575 289 253 69.6 0.274 2,000 36 1,400Fengshan 4,883 4,883 183 256 63.4 0.178 1,000 20 1,000Chejiawan 3,137 3,137 236 246 61.8 0.237 800 26 800Gaoshen 2,776 2,776 232 248 60.7 0.238 700 25 700Dashu 6,596 6,596 170 242 61.8 0.158 1,500 23 1,500Guanpu 8,791 6,726 213 238 57.2 0.111 2,700 31 1,900Baihe 10,606 7,937 215 257 58.7 0.116 3,000 28 2,000

Sub-total 93,178 88,444 25,000 27 22,600Average 194 250 61.5 0.163

2. JlshishanAnji 13,819 0 261 340 24.6 0.126 2,500 18 0Guanjiachuan 12,219 3,491 149 329 32.8 0.109 2,200 18 600Hulingjia 12,273 5,154 124 339 35.3 0.096 2,100 17 800Zhaizigou 11,774 5,887 130 337 32.6 0.103 2,100 18 900Guogan 6,585 2,041 67 335 33.8 0.071 1,800 27 500Xuhujia 7,999 3,519 76 331 43.6 0.072 1,800 23 600

Sub-total 8,669 20,092 12,500 19 3,400Average 134.5 335.2 33.8 0.096

3.DangchangAWu 11,200 0 146 285 90.4 0.136 2,000 18 0Jinmu 6,507 0 202 224 42.0 0.166 1,300 20 0Pangjia 8,098 0 199 325 69.0 0.203 1,700 21 0Pali 8,306 0 1107 241 70.0 0.158 1,700 20 0Muer 7,351 0 193 271 75.5 0.152 1,400 19 0Xinghua 10,021 0 215 263 67.7 0.178 2,000 20 0Boli 6,316 0 192 209 97.0 0.164 1,300 21 0Chele 11,916 0 154 238 60.6 0.123 2,600 22 0

Sub-total 69,715 0 14,000 20 0Average 301 257 71.5 0.160

- 162 - ANNEX F

Table 2Sheet 2

County/ Total Minority Grain Prdn Income % of with Arable No. of As % of Of which:Township Populabon Population per capita per capib Income Land emigrants Total minority

<Y300 per capita planned Population emigrants(person) (person) (kg) (Yuan) (%) (ha) (person) (%) (person)

4. Li XIanTanping 10,194 0 174 337 52.6 0.131 2,150 21 0Sanyu 5,692 0 177 310 59.2 0.197 1,350 24 0Xiaolian 7,361 0 197 323 50.9 0.148 1,500 20 0Wangba 10,702 0 195 321 42.8 0.130 2,000 19 0Leiba 9,341 0 215 325 72.1 0.123 1,900 20 0Longlin 15,121 0 129 335 31.8 0.074 2,900 19 0Baiguan 13,130 0 180 295 53.2 0.159 2,850 22 0Shajin 7,891 0 95 238 76.9 0.173 2,000 25 0Baihe 12,225 0 176 300 39.7 0.153 2,500 20 0Quanshui 6,179 0 155 318 59.5 0.145 1,250 20 0Qiaotou 12,903 0 123 314 52.9 0.136 2,500 19 0Caoping 8,439 0 176 279 64.4 0.175 2,100 25 0

Sub-total 119,178 25,000 21 0Averge 166 307.9 54.7 0.145

5. Lin TanChenqi 10,207 320 76 345 67.1 0.071 3,500 34 100Shimen 8,368 280 186 373 63.1 0.103 3,000 36 100Longyuan 4,479 750 197 340 75.3 0.104 2,000 45 200Sancha 3,600 250 239 354 76.6 0.131 1,500 42 100Biandu 9,227 310 87 350 59.7 0.147 2,000 22 50Dianzi 4,511 70 248 360 66.8 0.193 1,500 33 20Xinbao 3,902 550 238 375 73.3 0.127 1,000 26 100Zongzhai 4,697 300 221 370 71.9 0.106 1,000 21 50Xincheng 10,287 2,150 150 355 51.1 0.152 1,500 15 280


6. Zhou QuGongzishi 7,929 0 177 371 72.4 0.094 4,700 59 0Zhongpai 3,323 0 103 388 72.1 0.063 2,100 63 0Chigan 3,875 930 162 352 71.3 0.099 2,300 59 500Sanjiaoping 5,068 1,823 152 368 88.2 0.098 3,000 59 900Nanyu 4,230 791 152 378 72.3 0.085 1,600 38 300Balhng 4,336 3,845 216 371 71.9 0.157 600 14 500Chengguan 17,239 0 170 352 67.0 0.046 2,000 12 0Jiangpan 4,837 1,750 196 378 67.2 0.058 2,000 41 600Pingding 4,798 642 134 323 63.0 0.095 1,700 35 200

Sub-tobtl 55,635 9,781 20,000 36 3,000Averwg 162 365 71.7 0.088

ANNEX F- 163 - Table 2

Sheet 3

County/ Total Minority Grain Prdn Income % of with Arable No. of As % of Of which:Township Population Population per capita per capita Income Land emigrant Total minority

<Y300 per capita planned PopultiWon emigrant(person) (person) (kg) (Yuan) (9%) (ha) (pSon) (9) (peson)

7. Min XIanShili 34,950 491 137 294 50.3 0.082 3,000 9 0Chabu 21,230 0 148 293 60.5 0.082 4,000 19 0Hetou 18,121 0 256 280 58.1 0.147 4,000 22 0Xijiang 23,557 0 170 284 55.7 0.083 3,000 13 0Qingshui 13,739 0 125 249 59.8 0.066 2,500 18 0Minshan 14,368 11 222 261 59.4 0.109 2,500 17 0Meichuan 21,887 1,365 162 315 50.7 0.077 2,000 9 0Siguo 20,194 1,312 212 274 59.5 0.131 1,500 7 0Qingxu 20,268 301 154 256 59.6 0.090 1,000 5 0Xiaozhai 13,245 0 137 265 60.5 0.880 1,500 11 0

Sub-total 201,559 3,480 25,000 12 0Avwage 172 277 57.4 0.173

S. Yong JIngXiaoling 7,112 5,939 230 247 65.4 0.167 2,700 38 1,900Chuancheng 8,102 6,661 215 171 68.4 0.188 3,100 38 2,300Wangtai 6,553 3,031 280 187 8S.1 0.186 2,500 38 900Hingquan 7,230 476 345 226 66.3 0.250 2,800 39 200Pinggou 3,493 0 412 150 68.8 0.335 1,400 40 0Duan;ing 4,959 3,914 304 164 65.0 0.240 1,900 38 1,300Wangping 3,491 0 378 203 73.7 0.297 1,400 40 0Xinsi 5,399 2,713 285 168 70.1 0.236 2,100 39 900Yangta 5,620 0 366 199 60.9 0.217 2,100 37 0


9. He ZhengWanzhuang 9,754 4,788 120 352 55.5 0.033 1,500 15 720Maijiaji 11,615 6,532 90 355 58.4 0.030 2,100 18 1,200Xinying 10,671 6,030 110 348 54.9 0.033 2,200 21 1,200Xinzhuang 12,335 6,153 120 359 53.3 0.032 2,200 18 1,000Diaotan 15,154 6,685 197 346 49.5 0.033 2,000 13 880

Sub-total 69,529 30,188 10,000 17 5,000Avorage 127 352 54.3 0.032

10. Lin XlaManisigou 18,601 13,231 103 174 67.3 0.077 2,650 14 1,700Zhangzigou 8,126 5,640 137 252 76.1 0.101 1,160 14 700Ytngtan 10,647 8,862 146 253 76.0 0.102 1,520 14 1,100Monigou 10,332 10,196 175 254 82.2 0.084 1,500 15 1,400Diaoqi 21,540 14,115 89 205 68.9 0.065 3,150 15 1,900Manlu 17,058 5,294 182 255 66.5 0.100 2,520 15 700

Sub-to"tl 86,304 67,338 12,500 14 7,500Avera 139 232 728. o.08

11. Wu DuJinchang 9,845 0 151 120 79.8 0.138 4,200 43 0Chiba 5,545 0 267 294 61.4 0.187 2,600 47 0Maying 7,784 0 153 295 75.0 0.111 3,200 41 0Puchi 14,897 0 179 315 We.8 0.094 4,000 27 0Huanping 9,180 0 254 298 30.8 0.188 3,000 33 0XiongchN 5,935 0 269 300 22.3 0.148 1,000 17 0Feya 6,104 0 264 289 30.6 0.117 1,000 16 0

Sub-total 59,290 0 19,000 32 0Avera 220 273 52A 0.137

TOTAL 920,294 237,037 200,000 22 50,000AVERAGE 192 290 s0 0.131

GANSU HEXI CORRIDOR PROJECTEstablishment of New Settlement Townships and Settlement by Year

New Settlement Planned/ < Emigration/Settlement by Year -- > Total Emigrating

Actual 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 County

1. ZhahuaNo. of families 0 170 390 590 400 590 930 1040 620 310 5040 Dongxian

No. of peolple 0 830 1920 2930 1990 2920 4630 5170 3090 1520 25000

No. of minority migrants 0 830 1920 2930 1990 2920 4630 4170 2090 1120 22600

2. TuhuluNo. of families 0 0 370 360 470 650 970 340 590 290 4040 Yongjing

No. of peolple 0 0 1830 1810 2300 3200 4790 1710 2920 1440 20000


3. WujiacaoNo. of families 0 0 190 230 160 230 370 270 250 120 1820 Zhouqu

0'

No. of peolple 0 0 910 1150 790 1150 1830 1320 1240 610 9000


4. BadaogouNo. of families 0 0 180 310 190 280 440 380 290 150 2220 Zhouqu

No. of peolple 0 0 910 1510 950 1400 2190 1860 1460 720 11000

No. of minority migrants 0 0 0 0 0 500 1000 1000 500 3000

6. QiduntanNo. of families 0 40 190 270 190 260 420 220 290 140 2020 Wudu u

No. ofpeolple 0 210 940 1310 910 1320 2090 1100 1420 700 10000 M @ j

No. of minoritymigrants 0 0 0 0 0 0 0 0 0 0 0 I

New Settlement Planned/ < ---Emigration/Settlement by Year > Total EmigratingActual 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 County

6. DaposhanNo. of families 0 0 250 210 320 370 600 790 590 300 3430 Lintan

No. of peolple 0 0 1230 1040 1560 1830 2990 3930 2920 1500 17000

No. of minority migrants 0 0 0 0 0 250 250 250 250 1000

7. Beishhe (S.F.)No. of fmikes 0 0 120 170 180 210 270 470 260 140 1820 Wudu

No. of peolple 0 0 600 860 900 1040 1320 2310 1300 670 9000

No. of minory mgmrias 0 0 0 0 0 0 0 0 0 0 0

9. Bwanb (S.F.)No. of familes 430 590 330 240 190 560 1040 700 590 370 5040 Lbidang

No. of peolle 2120 2940 1660 1200 950 2790 5130 3470 2890 1850 25000

No. of mnolty mrarts 0 0 0 0 0 0 0 0 0 0 0

Aka of bMrdONs 430 800 2020 2380 2100 3150 5040 4210 3460 1820 0 25430

N0. of?peoPie 2120 3980 10000 11810 10360 15650 24970 20870 17240 9010 0 126000

No. of minrity migrants 0 U0 1920 2930 2990 4670 8380 6420 4340 1620 0 34100

9. YanbohuNo. of families 620 340 90 60 0 0 0 0 0 0 1110 Linxia

No. of peolple 3060 1670 440 330 0 0 0 0 0 0 5500

No. of minority migrants 3060 1670 440 330 0 0 0 0 0 0 5500 En .I

10. Wujiazhuang m HoNo. offamilies 0 0 110 50 350 400 370 160 280 300 2020 Hezhen ,

No. of peolple 0 0 530 260 1730 1990 1850 790 1380 1470 10000


New Settlement Planned/ <--- --------------------------- Emigration/Settlement by Year----- ----------- > Total EmigratingActual 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 County

11. LianghuNo. of families 0 0 370 320 360 350 400 420 480 130 2830 Dang Chang

No. of peolple 0 0 1840 1590 1800 1710 1960 2090 2370 640 14000

No. of minoritymigrants 0 0 0 0 0 0 0 0 0 0 0

12. XiangyangNo. of families 0 0 0 0 580 510 420 390 250 370 2520 Jishi ShanNo. of peolple 0 0 0 0 2880 2530 2080 1910 1250 1850 12500


13. BaiqibaoNo. offamilies 0 0 0 0 470 340 250 90 170 90 1410 Linxia

No. of peolple 0 0 0 0 2360 1700 1220 470 820 430 7000

No. of minornty migrants 0 0 0 0 0 1000 1000 0 0 0 2000

Sub-total Shuanata AreaNo. of families 620 340 570 430 1760 1600 1440 1060 1180 890 9890

No. of peolpIe 3060 1670 2810 2180 8770 7930 7110 5260 5820 4390 49000


14. BijiatanNo. of families 0 460 330 410 150 210 220 230 310 0 2320 MinXian

No. of peolple 0 2290 1640 2040 730 1050 1090 1120 1540 0 11500

No.ofminoritymigrants 0 0 0 0 0 0 0 0 0 0 0

15. Kuantan m F tNo. of families 0 850 310 150 0 0 0 0 0 0 1310 Min Xian 't m X

No. of peolple 0 4210 1520 770 0 0 0 0 0 0 6500


New Settlement Planned/ Emigration/Settlement by Year > Total EmigratingActual 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 County

16. Dushizi (S.F.)No. of families 0 360 270 490 290 0 0 0 0 0 1410 Minxia

No. of peolple 0 1820 1340 2420 1420 0 0 0 0 0 7000


Sub-tohl Huhu A,.:N of.foniu 0 1670 910 1060 440 210 220 230 310 0 0 5040

No. otpuolple 0 8320 4500 5230 2150 1060 1080 1120 1540 0 0 26000

Ho. of m Aot m lWit 0 0 0 0 0 0 0 0 0 0 0 0

Toff 16 TownsnIks fdurft wJNo. or f,Is 1060 2810 3500 3860 4300 4960 6700 5500 4970 2710 0 40360

No. of p.apIe 5180 13970 17310 19220 21270 24630 33170 27250 24600 13400 0 200000

No. of umbity miwlts 3060 2600 2360 3260 3490 7670 11380 7920 5740 2620 0 50000

ToEi 1i Towl"nps fcuiiatdv)ND. otf Imfbs 1060 3850 7360 11220 15520 20480 27130 32680 37650 40360

No. otpeoIpbe 5180 19160 36460 66680 76960 101680 134760 162000 183600 20000

No. of minorit m lgt 3060 5660 7920 11130 14870 22340 33720 41640 47380 60000

.t m -P .)O

-168 - ANNEX FTable 4

GANSU HEM CORRIDOR PROJECT

Demographic and Scio-Economic Situation ofDonexiane, Hui . ZonE and Hans in Central and Southeast Gansu

Indicators & Description --------------------Emigrating County-------------------------->Dongxiang Linxia Zhouqu Li

(Dongxiang) (Hui) (Zong) (Hans)

Demoerawhic DataTotal population (persons) 222975 317152 116332 450634Population density (peoplekmn2) 155 279 41 109Minoritiy population (%/O) 85.2 39.5 32.2 1.6Minority group Dongxiang Islamic Hui Tibetans

No. of people/household (persons) 5.66 5.06 4.89 5.09Sex ratio 105.46 105.48 104.72 109.26

Aze Groun: (%)0 to 14 years 34.97 29.99 29.91 31.6715 to 59 years 59.50 63.97 63.31 60.74> 60 years 5.53 6.04 6.78 7.59

Literacy LevelOverall illiteracy rate (/O): 84 63 70 65Male (%) 76 47 54 48Female (%) 92 78 86 84

Composite average value of cultural level 1.26 2.96 2.76 2.89

Industry Composition (%)Primary 96.92 93.75 90.37 94.89Secondary 0.36 2.73 4.13 1.26Tertiary 2.72 3.52 5.50 3.85

Occupation Composition (°):Professional & technical 1.51 1.65 3.07 2.03Supervisory and managing 0.52 0.19 1.02 0.82Office workers 0.36 0.34 1.00 0.35Business and service personel 0.33 1.23 1.23 0.88Agriculture, animal husbandry, fishery 96.78 93.68 91.35 94.59General workers 0.50 2.92 2.30 1.32Others 0.00 0.00 0.02 0.00

Socio-economic DataInfant survival rate (%/6) 89.1 81.3 90 88.6Rural net income per capita (Yuan) 282 430 380 337Grain production per capita (kg) 222 270 192 229Cultivatedlandpercapita(ha) 0.111 0.079 0.097 0.159

Source: Gansu Province "Report on Implementation of In-Migration" October 1995.

M IGTRAIN.XL-S


Inteerated Training for Mierant Farmers

Training Topics and < ------ Investment and Training Person-Session by Yzar- ------------------ I To j

Target Groups 1996 1997 1998 1999 2000j 2001 _ 2001 20 20u4 2005

1. IRRIGATION

Township technical staff Cost (Y'000) 9 9 6 6 6 48Persons 3 3 2 2 2 2 2 16

Admin. village tech. staff Cost (Y'000) 16 16 16 16 16 16 16 16 16 16 160Persons 16 16 16 16 16 16 16 16 16 16 160

Lead fanners Cost (Y000) 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 7.3 73Persons 160 160 160 160 160 160 160 160 160 160 1600

Fanners in irrig. techniques Cost (YO000) 83.3 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 278.6Person-session 2500 652 652 652 652 652 652 652 652 652 8368

Sub-total Cost (Y'OOO) 115.6 54 51 51 51 51 51 45 45 45 5S9.6Persons 179 1 79 1 78 1 78 178 178 178 176 176 176 1776Person-session 2500 652 652 652 652 652 652 652 652 652 8368

tl. AGRICULTURE

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0%Township tchnical staff Cost (Y'000) 18 18 18 18 18 18 18 18 144,

Persons 6 6 6 6 6 6 6 6 48Admin. village tech. staff Cost (Yooo) 16 16 16 16 16 16 16 16 16 16 160

Persons 16 16 16 16 16 16 16 16 16 16 160Lead farniers Cost (Y'000) 8 8 8 8 8 8 8 8 8 8 80

Persons 160 160 160 160 160 160 160 160 160 160 1600Farners in natural villages _Agricultural cultivation tech. Cost (Y'000) 26.1 181.6 217.2 221.1 290.4 328.4 338.6 171.6 141.9 83.1 2000

Person-session 1044 7265 8688 8844 11616 13136 13544 6864 5676 3324 80001Pest control/treatment Cost (Y000) 13.1 90.8 109.6 110.6 145.2 164.2 169.3 85.8 71 41.6 1001.2

Person-session 522 3632 4344 4422 5808 6568 6773 3432 2838 1662 40001Fertilizer application Cost (Y'000) 13.1 90.8 109.6 110.6 145.2 164.2 169.3 85.8 71 41.6 1001.2

Person-session 522 3632 4344 4422 5808 6568 6773 3432 2838 1662 40001Salinized soils inprovement Cost (Y'000) 11.4 79.1 94.6 96.3 126.5 143 147.5 74.7 61.8 26.2 861.1

Person-session 522 3632 4344 4422 5808 6568 6773 3432 2838 1662 40001 cn j3 Sub-total Cost (Y'000) 105.7 484.3 573 580.6 749.3 841.8 866.7 459.91 369.7 216.5 5247.5 1_

Persons 12I 182 182 182 f 182 182 182 1821 176 176 1808 t1

Person-session 26101 18161 217201 22110129040 1 32840 33863 17160| 14194 8310 20000.

Training Topics and < --__ ____- _Investment and Training Person-Session by Year----- --- TotalIargetGroups { 19961 1997 19 9 8 1999 2000 2001; 2001 2003 2004 2005

111. FORESTRY _ I I

Township technical staff Cost (Y'000) 84 24 24 0 12 _. 144

_ ________ Persons 28 8 8 0 4 _ 48

Admnin. village tech. staff Cost (Y'000) 16 16 16 16 16 16 16 16 16 16 160Persons 16 16 16 16 16 16 16 16 16 16 160

Lead farmers Cost (YO000) _ 8 8 8 8 8 8 8 8 8 8 80

Persons 160 160 160 160 160 160 160 160 160 160 1600Farrners in natural villages _

Fruit trees cultivation & maint Cost (Y'000) 32 27.2 27.2 27.2 27.2 27.2 27.2 27.2 27.2 27.2 276.8Person-session 1500 1274 1274 1274 1274 1274 1274 1274 1274 1274 12966

Protective forest cultivation Cost (Y'000) 16 13.6 13.6 13.6 13.6 13.6 13.6 13.6 13.6 13.6 138.4Person-session 750 637 637 637 637 637 637 637 637 637 6483

Forest pest controLl/reatment Cost/year 5.3 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 45.8Person-session 250 212 212 212 212 212 212 212 212 212 2158

Sub-total Cost (Y'000) 161.3 93.3 93.3 69.3 81.3 69.3 69.3 69.3 69.3 69.3 845Persons 204 184 184 176 180 176 176 176 176 1 76 1808

Person-session 2500 2123 2123 2123 2123 2123 2123 2123 2123 2123 21607

IV. LIVESTOCK _ _ __ =

Township technical staff Cost (Y'000) 21 21 21 21 21 21 18 144Persons 7 7 7 7 7 7 6 48

Adrnin.villagetech.staff Cost(Y'000) 16 16 16 16 16 16 16 16 16 16 160Persons 16 16 16 16 16 16 16 16 16 16 160

Lead farmers Cost (Y'000) 8 8 8 8 8 8 8 8 8 8 80Persons 160 160 160 160 160 160 160 160 160 160 1600

Farmers in natural villages: ILivestock rearing Cost (Y'000) 30 120 120 120 90 90 90 60 60 60 840

Person-session 1500 6000 6000 6000 4500 4500 4500 3000 3000 3000 42000Livestock breeding Cost (Y'000) 15 60 60 60 45 45 45 30 30 30 420

Person-session 750 3000 3000 3000 2250 2250 2250 1500 1500, 1500 21000Feed blending Cost (Y'000) 5 20 20 20 15 15 15 10 10| 10 140

Person-session 250 1000 1000 1000 750 750 750 500 500 500 7000

Sub-total Cost (Y'00) | 95 245 245 245 195 195 192 124 124 124 1784 r X |

Persons 183 183 183 183 183 183 182 176 176 176 1808 |

Person-Session 2500 10000 10000 10000 7500 7500 7500 5000 5000 5000 70000

TOTAL Cost (Y'000) 4776 876.6 962.3 945.9 1076.6 11571 1179 698.2 608 454.8 8436.1

Persons 748 728 727 719 723 719 718 710 704 704 7200Person-Session 10110 30936 34495 34885 39315 43115 44138 24935 21965 16085 299979

WOMENDEV.XLS

GANSU HEXI CORRIDOR PROJECTDevelopmental Activities for Fenale Migrants

Item -- Number of Persons s >Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year IO Total Unt

Planned No. of MigrantLabor during Year 6134 12016 8236 7834 12753 14776 19901 16357 14764 8042 120000 persons(Es&natedFemub Labor) 1132 3559 3051 4760 6041 7518 10280 10593 7823 5474 60231 personsCunulative No. ofMigrant Labor In Year 6114 17239 26624 33408 46161 60936 80837 97194 111958 120000 cum. nos.(Estimated Female Labor) 1132 4691 7742 12502 18543 26061 36341 46934 54757 60231 cum. nos.

1. Producion

Agr-tecwrica trazinig 950 3910 3350 3320 4760 5370 6540 5460 4850 3380 41890 person-session

LhestockproducUon 0 1625 3989 7767 12769 18351 25309 34049 40327 45109 45109 cum. rios.

L Entelpm fculave persnds|

Non-agrl.sklda 0 170 389 826 2192 3824 6787 10220 11696 12500 12500 cum.nos.

Fw -run businesi 0 153 292 445 615 812 1078 1296 1493 1600 1600 cum. nos.

fU. Condructlo

War consovaNcy waft 1037 2721 3018 3360 2796 2828 2828 1163 1001 728 21480 peron-yer

IV, Pubki Senvkes lcumuffve personsi

Teachem 0 6 16 31 53 97 158 223 305 416 416 cum. ros.

Healfhiworkcrs 0 5 12 23 39 73 118 168 229 212 212 cum. nos.

Agro-techdsnaon 0 3 8 15 26 48 79 112 153 206 208 cum.nos.

Adninistratin cadres 0 2 4 8 14 24 39 56 76 104 104 cmn. nos. M

Sociadworkws 0 6 14 27 46 85 139 195 267 364 364 cum. rios.

Sheet2

GANSU HEXI CORRIDOR PROJECTLand Settlemnent - Estimated Costs and Annual Investment

Item Unit Cost Total <------------------------------------------------Annual Investment (Y 'mn.) - - - ------ >per capita Cost Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total

(Yuan) (Y`mIn)

Planned No. of Settlersduring the Year 5184 13970 17309 19217 21255 24625 33168 27262 24607 13403 200000

I. Subsidy to SettlersRelocation 350 70 1.81 4.89 6.06 6.73 7.44 8.62 11.61 9.54 8.61 4.69 70.00

Housing 400 80 2.07 5.59 6.92 7.69 8.50 9.85 13.27 10.90 9.84 5.36 80.00

Production inputs 90 18 0.47 1.26 1.56 1.73 1.91 2.22 2.99 2.45 2.21 1.21 18.00

Agri. mach. & tools 60 12 0.31 0.84 1.04 1.15 1 28 1.48 1.99 1.64 1.48 0.80 12.00

Fuel for heating 100 20 0.52 1.40 1.73 1.92 2.13 2.46 3.32 2.73 2.46 1.34 20.00

Water supply 60 12 0.31 0.84 1.04 1.15 1.28 1.48 1.99 1.64 1.48 0.80 12.00

Electricity 40 8 0.21 0.56 0.69 0.77 0.85 0.99 1.33 1.09 0.98 0.54 8.00

Sub4otal I 1100 220 5.70 15.37 19.04 21.14 23.38 27.09 36.48 29.99 27.07 14.74 220.00

II. Infrastructure

Primary/Sec. schools 281.5 56.3 1.46 3.93 4.87 5.41 5.98 6.93 9.34 7.67 6.93 3.77 56.30

Health centers & clinics 42 8.4 0.22 0.59 0.73 0.81 0.89 1.03 1.39 1.15 1.03 0.56 8.40

Sub4otal II 323.5 64.7 1.68 4.52 5.60 6.22 6.88 7.97 10.73 8.82 7.96 4.34 64.70

Ill. Management andTraining of Settlers

Monitoring & evaluation 15 3 0.08 0.21 0.26 0.29 0.32 0.37 0.50 0.41 0.37 0.20 3.00

Monitoring system 7 1.4 1.40 1.40

Training of Settlers 19 3.8 2.04 1.31 0.04 0.05 0.05 0.06 0.08 0.07 0.06 0.04 3.80

Sub4otal IlIl 41 8.2 3.52 1.51 0.30 0.34 0.37 0.43 0.68 0.48 0.43 0.24 8.20

TOTAL 1464.5 292.9 10.90 21.40 24.94 27.69 30.63 35.48 47.80 39.28 36.46 19.32 292.90

- 173 -


ANNEX G

Irrigation Monitorina. Simulation and Dispatch Svstem

- 174 -ANNEX G

TERMS OF REFERENCEINTEGRATED MONITORING, SIMULATION AND DISPATCH SYSTEM


1.0 PROJECT BACKGROUND

The Gansu Hexi Corridor Project is a multi-purpose water resources development projectto accommodate an increase in population of 200,000 being relocated from extreme poorareas of Gansu Province. The Project requires the construction of the ChangmaReservoir on the Shule River, approximately 540 km of diversion canals and 970 km ofirrigation canals and 450 km of drainage ditches. The design flows within the maindiversion canals are between 30 to 42 m3/s, and between I - 9 m3/s for the secondarycanals. The joint operation of the Changma Reservoir with the exiting ShuangtaReservoir, located downstream on the Shule River, and the Chijinxia Reservoir on theShiyou River, would be able to regulate as much as 90.40 of the surface runoffs. Thecultivated areas within the Changma, Shuangta and Huahai irrigation command areascould be increased by 54,600 ha, from the current value of 43,600 ha to 98,200 ha. Otherusage within the project area include industrial and domestic consumptions. Groundwater augmentation will be required for all three irrigation command areas with the useof about 900 wells.

Four hydroelectric power stations are planned to be installed at the Changma Reservoir,14.25 MW, the Changma Dam intake of the new trunk canal, 12 MW, the west maincanal, 6 MW, and the Shuangta Reservoir, 2.4 MW. In order to ensure the efficient useof the water resources and the effective distribution of available water, and a sustainableextraction of ground water, an integrated monitoring, simulation and dispatch systemwill be required.

2.0 SCOPE AND OBJECTIVES

The integrated monitoring, simulation and dispatch system will be able to monitor thestate of operation of the entire project, including the operation of all three reservoirs, theflow conditions of all hydroelectric stations, discharges at key locations along thediversion and irrigation canals, discharges at the drainage ditches, quantity of groundwater extractions and meteorological variables. Automatic monitoring should beprovided for water levels and discharges of all three reservoirs, and flow conditions ofthe trunk, main, and sub-main canals. Other variables should be observed manually at

- 175 -

proper intervals or obtained through interfacing with the environmental monitoringdatabase.

The integrated monitoring, simulation and dispatch svstem will have the capability tosimulate the operation of the entire system to evaluate system operation strategy, forirrigation diversion as the primarv objective and hydroelectric power generation and toforecast short term system behaviour. It is noted that the daily load variations may beincorporated into short term diversion operation.

The monitoring of the svstem will ensure a smooth and efficient operation for waterdistribution within the svstem. To provide effective control of the distribution and toeliminate potential human operational errors, flows control gates to the trunk canals, themain canals, and to the sub-main canals could be controlled automatically. Therefore,as many as 26 gates can be included, among which 17 are located in Changma, 5 atShuangta, and 4 at Huahal imgation areas. While the releases at the hydropower stationsare regulated by system diversion operations, flood control procedures of individualreservoir, whenever necessary, will take precedence.

The monitoring system will also provide a database on the system operation, so that thedynamics of the entire system can be examined, and system operation strategy can berefined towards a more optimal conjunctive use of the available water resources withinthe Shule-Shiyou River Basin. Manual input of data will be necessary for manuallyobserved variables. Interface with the environmental monitoring database will probablybe required. The use of GIS can be considered if its use is shown necessary to enhancethe usability and to simplify the user interface.

In order to provide the planning staff with a complete view of the agnrculturalproductions from the operation. periodic data on cultivated areas from all three irrigationcommand areas can be considered as part of the database, if these information has notbeen included in other component of the project. The production data can be surveyedand entered to the database manually.

3.0 SYSTEM STRUCTURE AND COMPONENTS

a. Monitoring and Management Information System

The operation of the entire Hexi Corridor Project will be monitored from acontrol centre located at the Project Management Office in Yumen Township.

- 176 -

Both spatial and temporal state variables of major components of the Project andmeteorological data, such as precipitation, air temperature, evaporation and windspeed. will be monitored, stored and archived with the use of a database.Sampling frequency or observation intervals will depend on the dynamics of thevariables. Sampling of the state variables, which are monitored automatically,mav be performed at source or at the control centre. A list of variables to beincluded in the svstem database will be required together with theircorresponding characteristics, which will include, but not limited to, thefollowing: name, location, data format, and sampling frequency or interval.Basic data processing, such as error checking, checking of data range, basicstatistics, and basic data presentations, should be provided.

b. Transmission and Communication

Remote sensing sites can be linked to several sub-stations, located at theManagement Offices of the three irrigation command areas. These sub-stationswill then be linked to the control centre at the Hexi Corridor Project ManagementCentre. via a proven and reliable mode of data transmission. A microwavecommunication system is planned for the project to link all operational units.This system can be considered and adopted for data transmission. Otheralternatives, such as linking the monitoring stations directly to the ProjectManagement Centre, can be considered if shown to be more efficient.Transmission frequency and the amount of data transmitted will depend on thedesign of the monitoring system.

c. Computer Modelling

A computer model will be requtired to simulate the operation of the entire systemcovering all major system components for flow regulations, diversions, groundwater extractions, drainage, and hydroelectric generations. This model shouldbe capable of evaluating different operation strategies for decision making, andshould considered the temporal and spatial variations of discharges within thesystem. Development of the computer model should be based on provencomputer codes and interface to the system database should be provided.

As the combined length of the main diversion canal and the west main canal isover 80 km, it may be necessary to have the computer model, or perhaps a

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dynamic flow routing model, to verify the short term diversion schedule. Thecomputer model(s) should be versatile enough for future updating.

d. System Interface

User interface should be provided for ease of use of the various components ofthe computer system. The development of the user interface can be consideredas a separate component, or be partially integrated with the system database andthe modelling software.

4.0 EQUIPMENT AND METHODOLOGY

4.1 Office Space

The control centre can be housed in the building of the Administration Bureau of theShule River Basin located in Yumen Township. Approximately 300 m2 of office spacewill be required.

4.2 Hardware

Equipment for the control and monitoring of the hydroelectric power stations will beincluded with the installation of the power stations. Only hardware required formonitoring the canals, simulation and automatic gate controls are included here. Themonitoring, simulation, and dispatch system will probably be a micro-computer basedsystem. It is anticipated that the following hardware will be required:

a micro-computer system, which will be used as the server,a micro-computer system, which will be used at the control centre;micro-computers for sub-stations;pnnters;

a tablet;

communication system hardware,UPS's,

water level sensors with interface:flow meters with interface.

- 178 -

4.3 Software

General commercial software should be used if possible. for the operating system,database, networking, and supporting utilities. Efficient exchange of data with otherproject components should be considered in their selection.

Simulation model of the svstem should be developed from proven computer codes, andshould be easilv portable among operating platforms. Proprietary models or models forwhich source codes are not disclosed should not be selected, unless their usability andfunctionalitv are overwhelmingly superior.

5.0 TECHNICAL INPUTS

The integrated monitoring, simulation and dispatch system is not expected to be verycomplicated. The monitoring system of state variables is straight forward. However, thedevelopment of the simulation computer model for operational decision making requirethorough understanding of the dynamic relationships among various components of thesystem and numerical simulation techniques. Therefore, two expert advisors, eitherintemational or domestic, on telemetry in water resources, and water resources systemsimulation are recommended. Perhaps, a hardware specialist on computing andcommunication hardware should be consulted.

6.0 IMPLEMENTATION SCHEDULE

As the diversion canals are not expected to be completed until the 7th year of the project,the hardware system selection and acquisition should be conducted the earliest in the 4 dh

year of the project, in order to take advantage in the latest technological developmentsand to provide a relatively continuous therefore more efficient, execution of this projectcomponent. The following implementation schedule is provided based on a seven-yearproject implementation period. If the implementation period is scheduled to be longer,all activities from vear 4 on should be postponed accordingly. The development of thesimulation model for the svstem should be carried out at the beginning of the project.

a. Planning and Design

Planning and design of the simulation model for the system should beginimmediatelv with no conflict with other components of the project. The

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simulation modelling software should be developed first and preliminary runsshould be conducted with the current available data to verify the systemconfiguration. Then the monitoring network should be established, which wouldbe followed by the design of the database and the monitoring and control systemduring year 5 of the project.

The computer modelling software of the system can be developed together withthe simulations of the system with the currently available data, within the firstyear of the project implementation. The planning of the monitoring network andthe database can then follow.

b. Equipment Acquisition

A svstem of micro-computer, such as a PC-Pentium- 100, together with adequateaccessories, should be acquired for the computer modelling softwaredevelopment and model simulations at the beginning of the projectimplementation. Other equipment can be acquired at the beginning of year 6.

C. Installation and Implementation

The first micro-computer system for the development of the simulation softwareshould be installed at the beginning of the project implementation phase. Thedevelopment of the simulation model and the preliminary runs should beconducted within year 1, with limited activities in the following years.

The design of the monitoring and automatic control system and the databaseshould begin in year 5. Acquisition of required hardware should commence inthe second half of year 5.

The development of the database should follow as soon as the server computeris installed (in mid-year 6). The installation of automatic monitoring devices andcomputer system as sub-stations should begin as soon as the civil structures areready (year 6). The installation of the data communications devices will followas soon as the microwave system and the communication hardware are installed(late vear 6 to eariv year 7). The installation testing of the complete monitoring,simulation and dispatch system should be concluded by mid-year 7.

- 180 -

7.0 Training of Operation Staff

Training of operation staff is a important part of the monitoring, simulation and dispatchsystem, particularly operation and planning personnel responsible for the execution ofthe simulation, database maintenance, and computer system operations. Other trainingshould include gate operators, well operators, canal inspectors and maintenance crew.

User manuals for the execution of the simulation model, database, and svstem operationsshould be produced, which can be used as training materials for the operation andplanning personnel. Operation manuals for gate and well operations should be providedfor the field operators.

8.0 Estimations

8. 1 Time

a. Simulation Models

Project staff 24 man-monthsExpert advisors 6 man-months

b. Database

Project staff 18 man-monthsSpecialist Advisors 2 man-months

c. Design of Monitoring and Control System

Project staff 5 man-monthsSpecialist advisors I man-months

d. Installation of Monitoring and Control Devices and Communication Link

Project staff 36 man-monthsSpecialist advisors I man-months

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e. System Integration and Implementation

Project staff 12 man-months

Specialist advisors 2 man-months

TOTAL: Expert/Specialist Advisors: 12 man-months

Project staff: 95 man-months

Total budget: Y I,500,00

8.2 Equipment Acquisition

Major Computer Software: Operating System, Networking, CommunicationSoftware, Database, Compilers, Spreadsheet, Word-processing, Utilities, Simulation Modelling Package, etc.

Total: Y80.000.

Major Hardware:

I Micro-computer system as server

I Micro-computer system at control centre

3 Micro-computer system at sub-stations

3 Dot-matrix (medium quality) printers for sub-stations

i LaserJet for control centre

i Dot-matrix (medium qualitv) printers for control centre

I Digitizing tablet, minimum size 24" x 18" (approx.)

5 Networking interfaces (system design specific)

3 Communication hardware, e.g. modems (system design specific)

3 UPS for sub-stations (medium capacity)

I UPS for control centre (large capacity)

26 automatic gate controls

26 (min.) flow monitoring devices including interface to micro-computer

Total: Y942,960 (including miscellaneous items)

TOTAL BUDGET: Y2,600,000.

- 182 -


ANNEX H

Performance Indicators and Imnact Monitorina


Kev Performance Indicators(Main Summary Table)

B-

Project Objectim Key Performance Indicators Unit Base Year Intermediate Review #1 Review #2 ICR Full Develop.1996 1998 2000 2003 2006 2012

L Irrigation Development (a) Existine area(see separate detailed table) Ihrigation area improved 000 ha 18.6 31.94 41.86 43.6 43.6 43.6

Areaitrigated 000ha 18.6 31.94 41.86 43.6 43.6 43.6(b) Newv ameNew land reclaimed 000 ha 0 8.7 20.4 47.1 54.6 54.6New land itrigated 000 ha 0 4.91 14.37 39.6 54.6 54.6

(c) Total irigation water supplied Mcm 545 594 642 813 941 941(d) rigatfin system efficiency % 43-54 44-55 46-59 59-61 62 62(e) Water charges collected Y'mln 4.55 10.84 12.14 38.75 48.65 48.65(f)Opertion&maintenamcecxp. Y'mn. 7.07 15.09 13.03 25.94 31.01 31.01

IL Increase Agcultural I LEJstnALaProduction Area cultivated for.

(see separate detailed table) Food gain 000 ha 7.09 20.03 21.22 22.09 22.09 22.09Commoditycrmps OOOha 3.47 10.6 11.13 11.5 11.5 11.5

Total production obtained.Food grain xOO tons 7.2 14.16 20.92 30.98 39.11 43.91Commodity crps xOOO tos 81.5 9.72 16.18 25.16 33.79 38.34

Livestock productiGrasslad developed xN)00 ha 4.2 4.91 4.91 4.91 4.91 4.91

(b) New AreaArea cultivated forFood grain 000 ha 0 2.77 7.6 20.57 28.67 28.67Comumoditycrops 000 ha 0 1.04 3.21 9.42 13.39 13.39

Total production obtained:Food grain xOOO tons 0 2.83 14.01 50.95 108.65 160.53Commoditycaops xDO tons 0 1.14 8.33 34.39 77.28 115.53 m ¢ .

Livestolc production:Grassland developed x000ha 0 0.47 1.52 4.35 6.15 6.15 '

Meat tons 0 5.7 338 211.9 4380 7270Milk tons 0 0 0 0 0 1093

Project Objecties Kay Peformnuce Indicton Unit Base Year Intermediate Review #1 Review #2 ICR Ful Dwevop1996 1591 200 2003 2006 2012

Egs tons 0 0 197.6 807.4 1730 4182.6Tobd Crop Output Value YMIn.L 395.8 426 485.7 640.2 913 1029.8Totad iveStockO utpu Value Y'mhl. 2.02 15.989 22.62 41.92 42.03 61.31Total Gra Agni. Output Vaiuca Ymn.L 397.82 442.6 509.1 692.7 913.4 1190.1

mlL Poverty Reduct ad s(see seprate detailed table) Toadip establishsd nos. 0 8 16 16 16 16

Admin.illage sedbished n1. 0 15 69 1S0 150 160No. offamilies aeled noG. 0 7360 16520 32660 37650 40360No. of People sttled prsns 0 36460 76940 16200 181800 200000No. of minority people setled persons 0 7920 14670 41640 47380 50000

Socio_c DonomitPer caita incnb Yuan1 145.9 301.8 446.6 1319.5 1427 2043.4Percpigroduction/b kg 242 196 255 609.8 677.3 677.3Per capita *iznc Yuan 320 440 600 1480 1840 2460Percapitagpainproductioa/c kg 259.7 128.2 191.2 503.2 556.5 556.5Per caita incmeld Yuan 276.5 298.5 444 1398 1424.7 2040.8 iPercapita ginproductioa/d kg 279.98 196.6 255.5 609.8 677.3 677.3 0Per capita calmies onaned calories 1968 2233 2356 2514 2995 299SNo. of schols built

Secdary acbools ns. 0 2 7 14 16 16Piimai schools nos. 0 30 139 269 302 320

Student PopulatoPrimay persos 0 4395 9272 19623 24106 25903Seconduy middle pers 0 446 1177 2677 3673 3943SecoAary high person 0 388 981 2532 3613 3880

Totalkshtucnpopulation persons 0 5229 11430 24832 31392 33726 r No. of hospitalsbut nos. 0 8 16 16 16 16 m O'No.ofheIth clinics built nos, 0 15 61 130 160 160 t D

Credit avoxovd for moduction: K_No. of applcants approved nos. 0 7360 15520 32680 37650 40360Ofwhich for wmnea fanners nos. 0 4420 7760 16340 20180 20180Total amount aroved Y'mnhL 0 3.5 10.1 11.4 35.2 35.2Ofwidwihfor women fumers Y'mln. 0 2.1 6.1 6.8 21.1 21.2

IV. Environmental Protection New Setment AMeaand Rebabilitation Piny forest belts establshed kbnba 0 0 0 429n395 429/395 429/395

Project Objecti Key Performance Indicaton Unit Base Year Intermediate Review #1 Review #2 ICR Full Deveop.1996 19 2000 2003 2006 2012

(see separate detailedtables Secondaryforestbeltsestab. km/ha 0 0 0 276/110 276/110 276/110for newsettlement are & On-farm windbreaks establ. ha 100 1500 2400 4300 4700 13030

emigration source ara) Fuehvood forest establishd ha 0 300 500 800 1000 1000Orcrd Forest ha 0 600 1300 2700 3330 3330Nursey ha 0 100 100 100 100 100

Ovall vegdative cover % 2 3 4 9 11 11Total Forestry Output Value Y!mUn 0 0.599 0.833 10.6 28.8 72.06

Emigation Source Areas:Total area rehabilitatedrestored ha

Taracing/bendhing ha 0 810 2010 3240 4050 4050Afforesation \a ha 0 9404 17994 21006 22950 22950Planting of shrususs ha 0 1620/994 4036/1808 6480/2376 8100/2700 8100/2700Cosing of cultivated land

on teep dopes ha 0 6790 12150 12150 12150 12150

OD

at Output value including rop, forest, and livestock poduction.bl Migrants fiom Yo4min county to Changma irigation ared Migrats fnom Jihishan county to Shuangta irigftion aread/ Mgitrs frTn Lixian couty to Changma irigation area

IEcnz

5 D z-

GANSU HEXI CORRIDOR PROJECTNew Reclamation and Cropped Area by Year

Irrigation Area Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

RECLAMATION AREAChangmaReclaimed 0.53 0.80 2.49 2.81 3.86 5.10 6.07 4.98 2.60 2.09Cumulative 0.53 1.33 3.82 6.63 10.49 15.59 21.66 26.64 29.24 31.33 31.33

ShuangtaReclaimed 0.67 0.67 0.67 0.67 2.00 3.00 3.00 3.00 1.33 1.19Cumulative 0.67 1.34 2.01 2.68 4.68 7.68 10.68 13.68 15.01 16.20 16.20

HuaihaiReclaimed 0.00 1.53 1.31 1.36 0.99 0.53 0.54 0.53 0.28 0.00Cumulative 0.00 1.53 2.84 4.20 5.19 5.72 6.26 6.79 7.07 7.07 7.07

TotalReclaimed 1.20 3.00 4.47 4.84 6.85 8.63 9.61 8.51 4.21 3.28 0.00Cumulative 1.20 4.20 8.67 13.51 20.36 28.99 38.60 47.11 51.32 54.60 54.60 0'

CROPPED AREAChangmaCropped area 0.00 0.41 0.63 1.95 2.18 3.01 3.98 4.74 3.89 2.02 1.63Cumulative 0.00 0.41 1.04 2.99 5.17 8.18 12.16 16.90 20.79 22.81 24.44

ShuangtaCropped area 0.00 0.51 0.50 0.50 0.50 1.52 2.27 2.27 2.27 1.01 0.90Cumulative 0.00 0.51 1.01 1.51 2.01 3.53 5.80 8.07 10.34 11.35 12.25

HuahaiCropped area 0.00 0.00 1.17 0.99 1.04 0.74 0.41 0.41 0.40 0.21 0.00Cumulative 0.00 0.00 1.17 2.16 3.20 3.94 4.35 4.76 5.16 5.37 5.37

Total I m

Cropped area 0.00 0.92 2.30 3.44 3.72 5.27 6.66 7.42 6.56 3.24 2.64Cumulative 0.00 0.92 3.22 6.66 10.38 15.65 22.31 29.73 36.29 39.53 42.06

GANSU HEXI CORRIDOR PROJECTDevelopnental Activities for Fmale Migrants

Ibtn Number of Persons >Year1 Year2 Year3 Year4 Year5 Year6 Year7 Yar8 Year9 Year10 Total Uni

Planned No. o MigrantLabor during Year 1184 120656 326 734 12753 14776 19901 16357 14764 8042 120000 persons(Esift'ted FemaebLabor) 1132 3559 3051 4760 6041 7518 10280 10593 7823 5474 60231 personsCumulative No. ofMigrnt Labor In Year 613 17239 25624 33408 46161 60936 30837 97194 111915 120000 cum. nos.(Estied,FodFmate Labor) 1132 4691 7742 12502 18543 26061 36341 46934 54757 60231 cum. nos.

L Produdion

AgMec lraltning 950 3910 3350 3320 4760 5370 6540 5460 4850 3380 41890 person-

Liestock dcbton 0 1625 3989 7767 12769 18351 25309 34049 40327 45109 45109 cum. nos.

. .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I-11, ErtnxerD (cuviAVe Dersons)

Non-Wri. sidelns 0 170 389 826 2192 3824 6787 10220 11696 12500 12500 cum. nos. .

Faniy-run bu.ness 0 153 292 445 615 812 1078 1296 1493 1600 1600 cum. nos.

NL Condrucdlo

Water consevancy works 1037 2721 3018 3360 2796 2828 2828 1163 1001 728 21480 person-

IV, Public SerVices Icurnui ive prK§son

Teachers 0 6 16 31 53 97 158 223 305 416 416 cum. nos.

Healkhworkem 0 5 12 23 39 73 118 168 229 212 212 cun.nos.

Agro-techelensbon 0 3 8 15 26 48 79 112 153 208 208 cum.nos.

Admni stative cadres 0 2 4 a 14 24 39 56 76 104 104 cum. nos. c

Socialworkers 0 6 14 27 46 85 139 195 267 364 364 cun.nos. La

ANNEX H- 188 - Table 4

Annual schedule of afforestation in project areaUnit :ha.

Year Total 1 2 3 4 5 6 7 8 9 10

Total 9033.40 247.33 1182.94 1050. 84 953.53 944. 94 1432. 44 1197.74 918.5 638.43 466. 71

Total 6390. 00 147. 33 518.39 553. 79 605. 23 717.44 1204. 94 919. 24 818.5 538.43 366. 71

.X total 3056.60 147. 33 129- 67 189. 66 215. 66 300. 67 743. 27 477. 00 455.00 210.34 188.00

. Chaagma 1626.29 73.0 19. 67 84.33 107. 66 159.0 409.63 280.0 258.33 130.0 104.67

R 5 Shuangta 1036. 64 63.33 33. 33 40.0 51. 67 100.0 257. 98 170. 33 170.0 66.67 83. 33

Huahai 393.67 11. 0 76.67 65.33 56.33 41.67 75.66 26.67 26.67 13.67

total 2666.70 255.38 230.79 256.23 283.43 328.33 442.24 363.5 328.09 178 71

z 5 pear 1166. 69 56. 92 93. 37 110. 29 96. 60 146.06 233.02 185. 38 160. 94 84. 11

X apple 499. 99 24. 39 40.02 47. 7 41.4 62. 59 99.86 79. 45 68.97 36. 04

' pear 466.70 44. 19 26.18 20.35 81.74 74.00 66.34 58.58 54.33 40.99

3 apple 199. 99 18. 94 11. 22 8. 72 35. 02 31. 71 28.43 25. 10 23. 28 17.57

0 0.i c pear 233.33 77.66 42.0 48.72 20.07 9.78 10.21 10.49 14.40

s. apple 100.00 33.28 18. 0 20.88 8. 6 4.19 4.38 4.50 6.17

I total 666.70 133.34 133.34 133. 34 133.34 133. 34

,. r pear 233.35 46.67 46.67 46.67 46.67 46.67

w apple 100.00 20.00 20.00 20.00 20.00 20. 00ci,, pear 233.35 46.67 46.67 46.67 46.67 46.67

apple 100.00 20.00 20.00 20.00 20.00 20. 00

q ; total 1268.5 338.4 248.3 248.3 127. 5 127.5 178.5

. Changma 735.68 127.5 127. 5 127. 5 127.5 127.5 98.18

8 Shuangta 415. 95 120.8 120.8 120.8 53.55

3 t Huahai 116-87 90.1 26.77

total 1374.9 100.0 326. 15 248.75 100.0 100.0 100.0 100.0 100.0 100.0 100.091 environmenta protection 283. 9 141. 95 141. 95e foreats road tree 84. 2 84.2V. reservoir* protection 6. 8 6. 8g- tree

firewood 1000.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0S

Source: Gansu's "ProjeCt Feasibility Study Report - October 1995"

GANSU tEXI CORRIDOR PROJECTProjection of Student Population & School Required

Item <-------- Annual Projection (persons/units) - ------- --------------------- ----- >Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total

Planned No. of SetUersduring the Year 5184 13970 17309 19217 21255 24625 33168 27262 24607 13403 200000

Cumulative No. ofSettlers In Year 5184 19154 36463 55680 76935 101560 134728 161990 186597 200000

C -Cumulative--- ----- -

Projected student population in:Primary schools 625 2308 4395 6711 9272 12240 16237 19523 22489 24404Juniormiddleschools 48 176 446 682 1177 1864 2062 2677 3427 3637Senior midde schools 44 163 388 592 981 1619 2148 2582 3371 3613

Sub-total 717 2647 5229 7965 11430 15723 20447 24782 29287 31654 x

Projected number of schoolsreqtired (cumulative):Primary schools 4 15 29 44 61 81 108 130 150 160Secondary schools 1 2 3 5 6 8 10 13 15 16

Sub-total 5 17 32 49 67 89 11S 143 165 176

Projected number of teachersrequired (cumulative):Primary schools 20 77 147 224 309 408 541 651 750 813 CD

Secondary schools 11 25 61 93 158 255 309 386 499 532 v- .

SD

Sub-total 31 102 20S 317 467 663 ago 1037 1249 1345

ANNEX H- 190 - Table 6

GANSU HEXI CORRIDOR PROJECTSupervision Mission Schedule and Inputs

Mission Mission Input Mission members'Date (s-wks) speciality

Apr-96 Workshop launch 8 Ir, As, Pa, RMC

Sep-96 Supervision #1 12 Ir, Ag, Lk, As, Fr, Rs

May-97 Supervision #2 10 Ir, Dr, As, Pa, En

Sep-97 Supervision #3 14 Ir, Dr, As, Ag, Lk, Fr, Rs

May-98 Supervision #4 and 9 Ir, As, PaInitial Review


May-99 Supervision #6 10 Ir, Dr, As, Pa, En


May-00 Supervision #8 and 16 Ir, Dr, As, Ag, Lk, Fr, En, PaInterim Review #1

Sep-00 Supervision #9 14 Ir, Dr, As, Ag, Lk, Fr, En



Sep-03 Supervision $12 and 16 Ir, Dr, As, Ag, Lk, Fr, En, PaInterim Review #2


1-Sep Supervision #14 14 Ir, Dr, As, Ag, Lk, Fr, En

May-06 Supervision #1 5/Pre-ICR 9 Ir, As, Pa

Sep-06 ICR mission 14 Ir, Pa, As, Ag, Ik, Fr, En

Total 216

Legends: Ir: irrigation As: anthropologistlsciologistDr: drainage Pa: project analystleconomistAg: agriculture En: environmentalistLk: livestock Rs: resettlement specialistFr: forestry RMC: Resident Mission China

- 191 -


ANNEX I

Other Technical Data and Information

- 192 -

ANNEX I

Appendix Title

1. Summary of Project's Main Technical and Economic Data

2. Shule River Average Monthly Flow for Various ReturnPeriods

3. Irrigation Schedule, Norms and Quantities for variouscrops in Changma, Shuangta and Huahai Irrigation Areas

4. Comparison of Demographic and Socio-economic Indicatorsbetween Gansu Province, Project Area and the Emigrating

Counties

5. Typical Design of Afforestation for Project Area

6. Canal Lining

ANNEX I- 193 - Appendix 1

Sheet 1GANSU HEXI CORRIDOR PROJECTTECHNICAL AND ECONOMIC DATA

Item Unit Quantity Remarks

I. HYDROLOGY

1. Catchment area:Total km2 41250Above Changma Dam site km2 13250

2. Period of hydrological data years used years 41 From 1952 to 1 9933. Long-term average annual flow mcm 10314. Typical representative flow:

Long-term average flow rate cms 32.7On 7/25/52 at Changma Bao

Actual maximum flow rate cms 758 Hydro. Stn.Historical max. flow rate investigated cms 1710 Between 1869 - 1871Designed flood flow for Changma Dam cms 1620 Designed at P= 1 %Verified for flood flow for Changma Dam cms 2960 at P=0.05% (1 in 2000 years)

5. Flood VolumeAug.'81 at Changma Bao Hydro.

Actual maximum measured mcm 66.6 Stn.Designed flood volume for Dam mcm 306Verified flow volume mcm 548

5. SedimentLong-term average per year 000 tons 4720Long-term average sediment content kg/m3 3.66

On 8/21/72 at Changma BaoActual maximum measured kg/m3 99.3 Hydro. Stn.

II. CLIMATE

1. Long-term average temperature deg. C 6.9 to 8.8 at Yumen and Anxi Station2. Long-term maximum temperature deg. C 36.7 to 42.83. Long-term minimum temperature deg. C -28.2 to -29.34. Maximum wind speed m/s 28 to 34.55. Annual rainfall mm 63.4 to 47.46. Annual sun shine hours hrs 3265 to 32877. Frost -free days days 134 to 1578. Cumulative temp. above 10 deg.C deg. C 2901 to 35649. Solar radiation energy Kcal/cm2 154.9 to 152.910. Relative humidity % 41 to 39

III. EXISTING IRRIGATION FACILITIES

1. Irrigated area (total) 000 ha 43.6Cultivated land 000 ha 39.5Forest and pastrue 000 ha 4.1

2. Changma main intake mcm 4303. Shule River flow utilization rate % 41.74. Changma intake diversion distribution:

Changma area irrigation mcm 340Industrial use mcm 40Diversion to Shuangta Reservoir mcm 40Diversion to Chejin Reservoir mcm 10

5. Water from Shuangta Reservoir mcm 200 to 240 Shuangta Irrig. Area only6. Water diverted from Zhejin Reservoir mcm 49 Huahai Irrig. Area7. Groundwater usage mcm 46 All three areas8. Canal system efficiency:

Changma Irrig. Area % 54Shuangta Irrig. Area % 43

ANNEX IAnpendix 1Sheet 2


IV. MAIN PARAMETERS USED FOR PROJECT DESIGN

1. Irrigation assurance % 50 P = 50% for normal years2. Canal system efficiency % 623. Total area to be irrigated (total): 000ha 98.2

Changma Area 000ha 56.9Shuangta Area 000ha 30.7Huahai Area 000ha 10.6

4. New irrigation area increased (total) o00ha 54.6Changma Area 000ha 31.3Shuangta Area 000ha 16.2Huahai Area 000ha 7.1

5. Changma Reservoir regulated volume: mcm 100Irrig. use for Changma area mcm 550Industrial use mcm 83Diversion to Shuangta Reservoir mcm 254Diversion to Zhejin Reservoir mcm 61

6. Groundwater utilization (total): mcm 78Changma area mcm 50Shuangta area mcm 22Huahai area mcm 6

7. Spring water utilization (total): mcm 95 Shuangta Area only

V. CHANGMA DAM

1. Main Dam across Shule River

Type of dam Rockfill with impervious clay coreHeight of dam m 54.3 At El. 2004.0 mCrest length at top of dam m 364.8

2. SpillwayCrest elevation El. (m) 1993.3No. of bays no. 3 Each 10x7.5 mDesigned capacity cms 1228 P=11%Verified and checked capacity cma 1570 P-0.05%Spillway channel width m 25Discharge velocity per meter width cms/im 49 P 11%

3. Flood/Sediment release tunnelType Round. under pressuredLength of tunnel m 300.3Diameter of tunnel m 8Designed flood capacity mcm 392Verified and checked flood capacity mcm 1014

4. Intake Tunnel for Power GenerationType Round, under pressuredDiameter of tunnel m 4Length of tunnel m 605Maximum inflow cms 65

5. Power HouseType Above groundFloor area m2 550

6. Main Installations(a) Turbines

Number of units noa. 3Capacity each Kw 6500 & 1250 2 x 6600 Kw and 1 x 1250 KwMaximum operating head m 54.7Minimum operatinh head m 24.4Designed operating head m 40

- 195 - ANNEX IAppendix 1Sheet 3


(b) Generators nos. 3Capacity each Kw 6500 & 1250Total capacity Kw 14250Annual average generation GKwh 60Average annual running hours hrs 4220

VI. CHANGMA RESERVOIR

1. Reservoir wtare level elevations:Designed flood level El. m 2000.8Verified and checked flood level El. m 2002.2Normal storage level El. m 2000.8Flood control level El. m 2000.8Designed low water level El. m 1988.4Dead storage level El. m 1988.4

2. Reservior surface area at normal level km2 10.53. Back water km 8 to 94. Reservior capacity:

Total capacity mcm 193.4Flood regulation mcm 1 3.4Live storage mcm 100Sedimentation detention mcm 80 Dead storage

VII. DOWNSTREAM FLOOD VELOCITY AND ELEVATION

1. D/s velocity at designed flood discharge cms 1620Corresponding flood level El. m 1949.3

2. Minimum regulated discharge cms 1.8Corresponding d/stream level El. m 1947

VIII. IRRIGATION DIVERSION WORKS

(a) Changma Irrigation Area1. New intake nos. 1 New construction2. Extension of Trunk Canal to new intake km 6 New construction3. Improvement to existing Trunk Canal km 19.4 Improvement4. New trunk Canal km 0.54 New construction5. West Main Canal km 49.5 New construction6. 6 sub-main canals on West Main Canal km 75.3 & 30.3 New & Improved7. Shantaoguo Conveyance Canal km 3.9 New construction8. East Main Canal km 15.2 & 20.2 New & Improved9. North Main Canal km 1 .0 & 10.0 New & Improved10. North Sub-main Cnal #1 km 1 3 New construction

(b) Shuangta Irrigation Area1. Trunk Canal km 15 Imporved1. South Main Canal km 18.9 & 12.0 New & Improved2. North Main Canal km 11.4 & 23.9 New & Improved3. Xihu Sub-main Canal km 43.2 New construction

(c) Huahai Irrigation Area1. New intake complex nos. 1 New construction2. New Trunk Canal to new intake km 21.6 New construction3. West Main Canal km 5.7 & 2.0 New & Improved4. East main Canal km 5.7 Improved5. North main Canal km 0.6 New construction



(d) Branch Canals1. Changma Irrig. Area km 587/314 New construction/improved2. Shuangta Irrig. Area km 124.3/78.4 New construction/improved3. Huahai Irrig. Area km 57.6 New construction

IX. DRAINAGE WORKS

(a) Changma Irrigation Area1. Tuhulu Trunk Drain km 40.6 New construction2. Yinma and Huanghua SF Trunk Drains km 23 Improved

(b) Shuangta Irrigation Area1. Quazhou Trunk Drain km 25.5 New construction

(c) Branch Drains1 Changma Irrig. Area km 140.3/85.8 New construction/improved2. Shuangta Irrig. Area km 126.4 New construction3. Huahai Irrig. Area km 59.8 New construction

X. ON-FARM WORKS

(a) Irrigation Facilties1. New irrigation area 000 ha 52.92. Existing irrigated area 000 ha 24.7

(b) Drainage Facilities1. New irrigation area 000 ha 40.92. Existing irrigated area 000 ha 10.6

Xl. TUBEWELL IRRIGATION

1. New tubewells nos. 730 For irrigation use only.2. 10 Kv power lines km 373 New construction

Xii. POWER GENERATION

1. Changma hydropower station kw/nos. 14250/1 New construction2. Changma Intake hydropower station kwinos. 12000/1 New construction3. Yumen City (West M.C.) hydropower kwtnos. 6000/1 New construction

WORKS AND MATERIAL QUANTITIES

Irrigation & Drainage Works(a) Works quantities1. Earthwork & Rock excavation mcm 17.62. Earthwork and Rock backfilling mcm 1.743. Mass and reinforced concrete mcm 0.54

(b) Principal Construction Materials1. Cement 000 tons 3102. Timber 000 m3 37.73. Steel 000tons 22.7

(c) Labor Requirements1. Total mln. m-d 27.72. Peak demand persons 19000



Changma Dam(a) Work Quantities1. Excavation in earth and conglomerates 000 m3 3622. Excavation in rock 000 m3 3673. Earthfilling 000 m3 4184. Conglomerate backfilling 000 m3 21925. Concrete 000 m3 1116. Stone pitching and riprap 000 m3 17.27. Curtain wall grouting m 27708. Grouting to fissures m 264309. Grouting to backfilling m2 683510. Concrete anti-seepage wall m3 10582

(b) Principal Construction Materials1. Cement 000 tons 31.82. Timber 000 m3 4.63. Steel tons 6250

(c) Labor Requirements1. Total mln. m-d 1.62. Peak demand person 3200

XIV. INCREMENTAL PRODUCTIONS

1. Food grains 000 tons 204.42. Edible oils 000 tons 8.23. Melons and vegetables 000 tons 76.34. Cotton 000 tons 6.85. Hay for animals 000 tons 126.66. Timber 000 tons 24.87. Meat products 000 tons 13.68. Wool, hair, etc. tons 2.19. Supply commodity grains 000 tons 114.2 58% of incremental production10. Supply commodity edible oils 000 tons 5.7 70% of incremental production

XV. SETTLEMENT

Total in new areas developed: person 200000 By the year 2005Changma Irrigation Area person 125000Shuangta Irrigation Area person 50000Huahai Irrigation Area person 25000

XVI. ECONOMIC EVALUATION

1. EIRR % 18.8 Based on 1995 prices.3. Net present value Y' mln. 774 Based on 1995 prices.3. Average per capita income for new migrants Yuan 980 - 3180 Based on 1995 prices.

GANSU HEXI CORRIDOR PROJECTMONTHLY AVERAGE FLOW AND SUSPENDED SEDIMENT LOAD IN SHULE RIVER

Item Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average/Total

Flow

Monthly av. flow (cms) 13.1 13.3 14 20.6 27.7 39.5 84.8 87.4 37.6 21.3 17.5 13.7 32.54

Percent of annual (%) 3.35 3.41 3.59 5.28 7.09 10.12 21.72 22.38 9.63 5.45 4.48 3.51 100.00

Suspended Sediment

Monthly total ('000 tons) 2.9 3.4 12.5 54 122 234 1690 1490 149 11.5 5.6 5.1 3780

Percent of annual total (% 0.08 0.09 0.33 1.43 3.23 6.19 44.71 39.42 3.94 0.30 0.15 0.13 100.00

Bed Sediment

Monthly total ('000 tons) 0 0 0 13.6 36.6 58.5 425 375 37.3 0 0 0 946 co

Percent of annual total(%) 0.00 0.00 0.00 1.44 3.87 6.18 44.93 39.64 3.94 0.00 0.00 0.00 100.00

Total Sediment

Monthly total ('000 tons) 2.9 3.4 12.5 67.6 158.6 292.5 2115 1865 186.3 11.5 5.6 5.1 4726

Percent of annual total (%) 0.06 0.07 0.26 1.43 3.36 6.19 44.75 39.46 3.94 0.24 0.12 0.11 100.00

SEDIMENT GRAIN SIZE DISTRIBUTION >

Grain size (mm) 0.007 0.01 0.025 0.05 0.1 0.25 0.5 1 °. ~

% passing grain size 17.8 24.6 45.4 69.2 87 96.9 99.7 100 Average values for 1971-80by weight

GANSU HEDa CORIDOR PRtOJECTSUMMARY OF IRRIGATION DURATION AND QUANTITIES FOR DIFFERENr CROPS

CHANGMA. SHUANGTA. HUAHAI IRltGATION AREAS

Crop C _oa Irri Ars (,00 he) Shbua9a Irig. Ar (30,670 ha) Hhasi IrTg. Am (10,670 ha)Cr No. i trri. Inpcna Groc Irriy. CropP4 No. of Irriy Irrrmt Grou 2Igm Cromr No of Irig. IMPrr Gou Irrg.

roeo das Wm wmqot Vods a rsio days Wu R,q'mt Vohae a rwo da W*ln Rq'mt Vohmire a

(I) U ac.m/ba 0.62 \krly I cu.rm/a 0.62 E\lrsy xi cam/ba 0.62 Efifcrey

(rawm) (mem) (mrm)

Wbcs 52.9 130 6515 276.28 52.8 127 6015 154.13 52 121 6250 55.04

Cm 3.1 102 726 19.75 5.2 116 7200 180.6 a 124 6975 9.60

comma0 0 0 0 0 86 4500 22.26 0 96 4650 6.40

Bmbd (Fd t_ 6.9 a mm 37.97 0 0 0 0 0 0 0 0

onSll&d 8.1 70 4650 34.55 3.7 is 4650 0.51 4 54 5120 3.51

SW bt 3 120 67 18.66 0 0 0 0 0 0 0 0

I6kmVsg.phA 5 95 6750 30.96 5 126 6750 16.70 4 114 6750 4.65

Famu amtmi 10 72 4500 41.21 14.4 72 45ee 20.41 13 57 3000 6.72

P _me 12 76 4125 45.40 10 73 4125 32.06 1 5s 3310 6.25

Mab.62.* sPme 21.2 30 1RD 35.W 23.2 38 IOD 20.66 20 31 1950 6.71

mkwaredOs _Ir 0 0 0 0 1.3 22 2860 1.16 0 0 0 0 %D

Tod momS 294.04 7 '

S ^irr I 26.1 16 sD 23.8 26 2560 24 37 1S56

Afs *err1p 51.9 46 180c 51.8 46 IMD 52 37 )Se

\I1: Ih rg r ibg r aum m sigasswe qppkc .

3^t1CI3p

I FaIbIS

W

GANSU HEXI CORRIDOR PROJECTIRRIGATION SCHEDULE AND APPLICATION RATES FOR VARIOUS CROPS

Chanrma lrrioation Area 156,800 ha)

Crop/ Cropping Irrigation Irrigation Period No. of Irrig. Water Requirements Gross Irrig.Area (ha) ratio Sequence Start End Days Norm Total Volume @

cu.m/ha cu.m/ha 62% Efficiency(mcm)

Wheat 51.90% * 1 21-Sep 5-Nov 46 180028477.53 2 1-May 15-May 15 795

3 16-May 30-May 15 6904 31 -May 17-Jun 18 10505 18-Jun 5-Jul 18 8406 6-Jul 23-Jul 18 840 6015 276.28

Corn 3.10% '1 5-Apr 20-Apr 16 15001700.97 2 10-Jun 23-Jun 15 900

3 1-Jul 15-Jul 15 9754 16-Jul 30-Jul 15 11255 31-Jul 14-Aug 15 9756 15-Aug 29-Aug 15 975 17 30-Aug 10-Sep 11 750 7200 19.75

0

Broad (Faba) bean 6.90% *1 5-Apr 20-Apr 16 15003924.03 2 25-May 8-Jun 15 975

3 9-Jun 23-Jun 15 9004 24-Jun 8-Jul 15 9755 9-Jul 23-Jul 15 9006 24-Jul 4-Aug 12 750 6000 37.97

Oil seeds 8.1 *1 5-Apr 20-Apr 16 15004606.47 2 16-May 3-Jun 19 900

3 4-Jun 17-Jun 14 7504 18-Jun 30-Jun 13 750 uz >.5 1-Jul 7-Aug 8 750 4650 34.55 Z

Sugar beets 3.00% '1 5-Apr 20-Apr 16 15001706.1 2 10-Jun 24-Jun 15 840 " '-H

3 25-Jun 14-Jul 20 10204 15-Jul 3-Aug 20 10205 4-Aug 23-Aug 20 8256 24-Aug 10-Sep 18 8257 21-Sep 1-Oct 11 750 6780 18.66



MelonsNeg. 5.00% '1 5-Apr 20-Apr 16 15002843.5 2 1-May 15-May 15 750

3 9-Jul 23-Jul 15 9004 24-Jul 7-Aug 15 9755 3-Aug 22-Aug 15 9756 23-Aug 1-Sep 10 9007 2-Sep 10-Sep 9 750 6750 30.96

Forest area 10.00% 1 1 -May 15-May 15 7505687 2 1-Jul 15-Jul 15 750

3 5-Aug 14-Aug 10 7504 30-Aug 10-Sep 12 7505 11 -Oct 30-Oct 20 1500 4500 41.28

Pasture 12.00% 1 16-May 24-May 9 7506824.4 2 18-Jun 30-Jun 13 675

3 24-Jul 14-Aug 22 9004 30-Aug 10-Sep 12 9005 11 -Oct 30-Oct 20 900 4125 45.40 °

Multi-croppedPasture 21.20% 1 31-Jul 14-Aug 15 750

12056.44 2 15-Aug 29-Aug 15 1050 1800 35.00

Total 539.85

Spring irrig. ' 26.10% 1 5-Apr 20-Apr 16 1500 1500

Autumn/winterirrigation 51.90% 1 21-Sep 5-Nov 46 1800 1800 5 .

rt S. >w X-H

Shuangta Irrigaion Area (30,670 ha)



Wheat 51.80% *g1 26-Sep 10-Nov 46 180015887.06 2 25-Apr 9-May 15 795

3 1 0-May 24-May 15 6904 25-May 10-Jun 17 10505 11-Jun 27-Jun 17 8406 28-Jun 14-Jul 17 840 6015 154.13

Corn 5.10% *1 16-Mar 10-Apr 26 15001564.17 2 25-May 8-Jun 15 900

3 9-Jun 23-Jun 15 9754 24-Jun 8-Jul 15 11255 9-Jul 23-Jul 15 9756 24-Jul 7-Aug 15 9757 8-Aug 22-Aug 15 750 7200 18.16

Cotton 10.00% *1 16-Mar 10-Apr 26 15003067 2 21 -Jun 5-Jul 15 750

3 6-Jul 20-Jul 15 7504 21-Jul 4-Aug 15 7505 5-Aug 19-Aug 15 750 4500 22.26

Oil seeds 3.70% *1 16-Mar 1 0-Apr 26 15001134.79 2 10-May 24-May 15 900

3 25-May 10-Jun 17 7504 11-Jun 25-Jun 15 7505 26-Jun 10-Jul 15 750 4650 8.51 rt :bA

MelonsNeg. 5.00% *1 16-Mar 10-Apr 26 1500 m (1533.5 2 25-Apr 9-May 15 750 i 0

3 16-Jun 30-Jun 15 900 X4 11-Jul 15-Jul 15 9755 16-Jul 30-Jul 15 9756 31-Jul 14-Aug 15 9007 15-Aug 29-Aug 15 750 6750 16.70



Pasture 10.00% 1 1 0-May 24-May 15 7503067 2 11-Jun 23-Jun 13 675

3 15-Jul 29-Jul 15 9004 20-Aug 29-Aug 10 9005 11 -Oct 30-Oct 20 900 4125 20.41

Forest area 14.40% 1 10-May 24-May 15 7504416.48 2 15-Jul 29-Jul 15 750

3 115-Aug 29-Aug 15 7504 30-Aug 5-Sep 7 7505 11 -Oct 30-Oct 20 1500 4500 32.06

Multi-croppedPasture 23.20% 1 30-Jul 14-Aug 16 900

7115.44 2 15-Aug 5-Sep 22 900 1800 20.66

Multi-croppedOil seeds 1.30% 1 8-Aug 19-Aug 12 1050

398.71 2 20-Aug 29-Aug 10 750 1800 1.16

Total 294.04

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

Spring Irrig. * 23.80% 1 16-Mar 10-Apr 26 1500 1500

Autumn/winterIrrigation 51.80% 1 26-Sep 10-Nov 46 1800 1800

r 10.u 10

iL.

> >

LI)o

Hua Hai Irrigation Area (10,670 he)



Wheat 52% R1 1 -Oct 5-Nov 37 18005548.4 2 1-May 15-May 15 825

3 16-May 30-May 15 7504 31-May 17-Jun 18 9755 18-Jun 5-Jul 18 9006 6-Jul 5-Jul 18 900 6150 55.04

Corn 8.00% 01 15-Mar 20-Apr 37 1500853.6 2 10-Jun 24-Jun 15 900

3 1 -Jul 15-Jul 15 9754 16-Jul 30-Jul 15 9755 31-Jul 14-Aug 15 9006 15-Aug 30-Aug 16 9007 31-Aug 10-Sep 11 825 6975 9.60

Cotton 8.00% 1 15-Mar 20-Apr 37 1500853.6 2 1-Jul 15-Jul 15 750

3 16-Jul 30-Jul 15 7504 31-Jul 14-Aug 15 9005 15-Aug 30-Aug 16 750 4650 6.40

Oil Seeds 4.00% 01 15-Mar 20-Apr 37 1500426.8 2 31-May 9-Jun 10 975

3 24-Jun 30-Jun 6 9004 6-Jul 20-Jul 15 8255 21-Jul 5-Aug 16 900 5100 3.51

MelonsNeg. 4.00% *1 15-Mar 20-Apr 37 1500 1 426.8 2 16-May 30-May 15 750 m p

3 18-Jun 30-Jun 13 9004 24-Jul 5-Aug 13 975 X5 6-Aug 19-Aug 14 9756 20-Aug 30-Aug 11 9007 31-Aug 10-Sep 11 750 6750 4.65

Crop/ Cropping Irrigation Irrigation Period No. of Crop Water Requirements Gross Irrig.

Area (ha) ratio Sequence Start End Days Norm Total Volume @cu.m/ha cu.m/ha 62% Efficiency

(mcm)

Forest areas 13.00% 1 11-May 25-May 15 750

1387.1 2 31-May 18-Jun 18 750

3 24-Jul 5-Aug 13 750

4 20-Aug 30-Sep 11 750 3000 6.71

Pasture 11.00% 1 16-May 30-May 15 750

1173.7 2 18-Jun 5-Jul 18 750

3 6-Aug 19-Aug 14 900

4 31-Aug 10-Sep 11 900 3300 6.25

Multi-croppedPasture 20.00% 1 6-Aug 20-Aug 15 900

2134 2 21-Aug 5-Sep 16 1050 1950 6.71

Total 98.87

-__ _ _ _ _ _ _ 0__ - _

SpringIrrigation 24% 1 15-Mar 20-Apr 37 1500 1500

Autumn/winterIrrigation 52% 1 1 -Oct 5-Nov 37 1800 1800

(D m rti

J H

GANSU HEXI CORRIDOR PROJECT - SETTLEMENT COMPONENT

Demographic and Soclo-econonic Indicators Comparliaonbetween Province, Project Aroe and Emigrating Counties

Province/ | <--- Populatin > 'Agri. Population <evels----_------>Project Area/ Total Annual Minority As % of Density No. of As % of I University High Sch. Sec. Sch. Prkmary Total llherate/Emigrating Counties 1 990 increase Population 1990 total per sq.m. j Persons Total Pop. a a levels sernilit.

Imin. 1982-90 ('0001 (%) (person ( min.) 1%l Iper '000) (per '0001 (per '000) Iper '000) (per '000) (per '000)(per I 000)

I IlGansuProvince I 22.37 16.87 1856.2 8.3 49.3 I 18.59 82.5 I 11 78.3 168.5 291.3 549.1 279.3

|Project Area I

Yumen City I 0.194 6.05 2.4 1.2 14.4 I 0.081 45.9 24.6 179.9 299.6 289.6 793.6 109

Anxi County I 0.074 0.14 0.5 0.6 3.1 I 0.055 75.3 I 6.9 124.5 247.8 323.2 702.4 171.6

Total/OveraN I 0.268 4.39 2.9 1.1 7.1 I 0.136 54.4 I 19.7 164.7 285.4 298.7 768.5 125.5

Emlrating Counties |I I.I

Jinhn 0.413 14.1 0.9 0.2 188.2 0.401 96.3 I 2.5 46 119 277.6 445.1 383.7 rI I I O0

Yongjing I 0.188 14.96 25 13.3 100.8 I 0.164 87.5 I 6.7 53.9 149.3 310.2 520.1 294 1I I I

Dongxban | 0.223 22.03 189.9 85.2 147.7 I 0.22 97.7 | 1 17.6 33.8 93.4 145.8 541.1

Jishishan I 0.194 17.29 101.4 52.1 213.6 I 0.189 96.9 I 1.4 21.4 56.5 53.6 132.9 514.9

LInxI | 0.317 14.8 125.1 39.5 261.7 I 0.312 95 | 1 34.7 96.4 208.3 340.4 433.4

Hezheng | 0.164 18.25 93.3 57.1 170.4 I 0.159 96.2 | 1.6 32.2 91 59.1 173.9 478.7

Zhouqi | 0.116 13.62 37.5 32.2 39 I 0.107 91 | 2.7 39.7 94.3 57.3 194 486.9

Lintang I 0.131 11.48 35.8 27.3 91.4 0.124 93.7 | 2.2 38.2 84.2 88 213.6 477.8

Wudu | 0.471 13.41 12.9 2.7 100.6 I 0.454 96.4 j 4.6 39.7 92.2 213.5 350 456.1 :

Jinchang | 0.266 12.6 7.1 2.7 237.8 f 0.26 97.4 I 1.4 28.6 56.4 152.4 238.8 538.6 X

Min 0.393 11.74 12.5 3.2 109.9 I 0.371 93.9 | 1.8 29.8 80.9 165 277.5 498.7

Total/Overall I 2.876 14.45 641.4 22.3 128.2 I 2.761 96.5 I 2.5 35.8 87.5 196.4 322.2 460.1

GANSU HE10 CORRIDOR

Demograplc and Socdo-between Province. Projb

Province/ -< -Agriculturai Inputs and Productivity- - > ------ Land with Slopes-------->

Project Area/ j Agric. Fertilizer Grain Grain Net agri. I Less than 15 to 25 Greater

Emigrating Counties I mechani- Appin. Yields prodn. income j 15 deg. degrees than

zation per labor per labor I 25 deg.

| Iwatt/mu) 1kg/mu) (kg/mu) (kg/mu) (Yuan) | (%1 1%) 1%)

|Gansu Province I 1089.4 23.5 159 1005 935 I

|ProJect Area

Yumen City I 3261.3 40.6 397 2831 2210 100 0 0

Anxl County I 2505 45.4 384 3342 2409 I 100 0 0

Total/Overall I 2927.6 42.8 391 3035 2289 I 100 0 0

|Emigrating Counties |

Jinin ) 334.1 16.4 109 784 589 I 81.15 18.06 0.79I_

Yongjing 2409.5 15 148 913 645 | 63.03 32 4.97 1

Dongxian 1106 20.9 169 612 320 I 56.48 34.48 9.04

Jishishan I 842.1 20 169 612 320 | 75.98 4 20.02

Linxia I 1417.5 19.9 232 790 704 | 80.78 17.44 1.78

Hezheng | 1049.7 15.4 185 700 483 40 57 3

Zhouqi 677.6 4.4 99 345 355 21 66 13

Linteng I 797 4.4 99 345 355 I 44.6 45.8 9.6 P

Wudu I 986 25.5 114 454 556 I 77.5 13.42 9.08 P >C

Jinchang 453.6 15.2 121 445 642 I 29.82 25.56 43.62 X

Min 375.6 5.5 130 393 428 I 41.18 41.18 17.64

Total/Overall I 793.9 15.5 134 587 538

GANSU HEXI CORRIDOR

DemogragNi en Sodo-betwee Proebce, Profs

Province/ <.44eath Amenlties-- > <--------Economic Development- ->Project Aree/ Heafth ctrs. Heiath workers Beds for Petients Industrial Agric. T&V Enter. Net Agric. Grain Cultivated IEmigrating Counties clinics, etc Persons Nos. j Output Output Outpout income production lind

INo3.) INose. (per '000) INos.l Iper '000) per capita per capita per capite per cphet per capita per capita| IY) IY IY) (IY ' (Kg) Imu) j

|GenwProu he | 4186 69050 3.1 47346 2.2 1236.5 457.2 287.9 430 307 2.8

tPmict Are

Yumen City 42 1000 5.2 714 3.7 I 3668.5 298.8 344.5 916 442 3.7 IAnxiCounty 24 223 3.1 194 2.7 486.9 618.1 477 926 914 4 I

TotallOveral 66 1223 4.6 908 3.4 I 2792.7 386.5 380.9 920 572 3.7 II IitEmig-thggCountiesI I

Jinin 44 511 1.3 371 0.9 114 209.8 146.5 310 315 3.8 |I IYonaing 31- 607 2.7 402 2.2 I 273.8 120.9 322.4 293 241 2.1 I

Dongxian 28 127 0.6 110 0.5 9.6 130.7 175.3 233 209 1.7 IJishlhan 22 140 0.7 121 0.6 I 7.8 148.9 93.2 223 217 1.5

Lhixis 26 227 0.7 169 0.6 I 35.7 202.1 208.4 286 274 1.3 IHezheng 19 190 1.2 282 1.8 I 47.7 169.7 214.9 285 243 1.5 IZhouql 39 389 2.7 t85 t.6 115.7 142.8 55.8 279 155 1.5 I

I ILintang 23 213 1.7 120 0.9 42 157.9 92.4 275 191 2.2

Wudu 80 1291 2.8 962 2.1 I 84.3 206.5 108.3 322 196 1.6 iJinchang 37 399 1.5 290 1.1 5 56.2 274.5 93.1 274 187 1.7 |

Min 47 515 1.3 372 1 56.3 168.9 71.5 248 178 1.7 |

Total/Overall 396 4509 2 3384 1.4 I 75.5 185.4 139.8 280 222 2

Typical design of Afforestation in project area

ee Type I 0dr Slclwed kinds Proporation Density Digging pit Afforostatlonol Type otindls Sel etedkns ot bid the distance Sapling rl i unud wp iretli drdRabisin stete Remarksof land of forest of treets of laces between rows (as) sossbr bea

of 11'ex bc distan Sapling style time stAndad way, rime sapling oltnarad

Second whitepoplar, Mao

Edg shelter Tiao and arbor l. 5x2 3330 arbor:40X60 Continued three years in wbich respectivelyforest belts Zhang Zi buosh:l X2 4995 pit bushn (deep) plantag ASpurn 2 years growcd I gtade sapling loosen the soD hoe up weeds I tine in each

pine, red wit- boshi:401X 0 sapling0100 year,yeartly watering 1-2 slites.

low

Hu poplar. abrO6 Continued three years,in which respetdielY2 IV gorestbelts red w-low or 6 4 ubos:l. X2 333 pit autumn (deep) planting Spring 2 years growed I grade sapling loosen the sol hoe up weeds I ime in ch

3 1 forest belts whbitAe ir 10 bush, I.5X2 13995 bush:40X40 sapling apir2m year ,yeasty watering I1-2 tir *Hen

tSIecot t bS Ir t r I nd 10 1- SX2 3330 40X 60 pl n ing Sprin 2-3 ytUs gr g sIn ti hre Years, in whch re- pating 3 rows3 I trunk; shelter Second'30 itatun 40 X60 planting Spring 2-3 years growed I grade specsively loosen the soil, hoe up palogbttie

fores5 belts white 10 .52 3330 pit utumn ep) sapling autumn sapling weeds I time in each year ,yearly wa- nlin both a

poplar ~~~~~~~~~~~~~~~~~~~~~~~~~~tecing 1-2 times. : aa

trunk shelter Xin Jiang 403(60 planting Spring 2-3 years growed I grade Continue4 three years. In which threecyers.c-n wich plantIngin 3 rows 0riest bhelts pop anr g l I. 53( 3330 pit autumn 4sX60 pl,ihna Sprinl 2-3 years growed I grad tie loosen the oil, hoc up slongt both sides

or~~~st belLS poplar W~~~~~~~~(eep) sapling autumn sapling weeds I time in each ycar,yeorly wa- of canalteringI 1-2 limes.

main - Secard white 4OX60 planift Spring 2 - 3 years Stowed I grade ~~~~~Continued three year,in which respeclls'ry Planting 2 rows A-

1 1 O,i sheliet ec ord w it 10 ISX 2 3330 pit au l1 w p a i ng S pr n 2 - 3 ye ar g o we c gr ade up w e td I lim e in c ads long bo th sid es OftFs s Jagpoplar ar Xi O 15( 30 ptolnn (deep) saplias autoumn sapling year ,yearly watering 1-2 litims. C

6 g Vice - shelite Second while 40x6O pAtn pit 2-3y sgoe rd Continued three years,in which respecivoly plantuing I rows a-forest belts poplar or Xini II 1. 5 1665 pit autumn 6 plnigSrg 2-3yesgawdIrde loosen the soil ,hot up weest I time in eo* log both sides of

Jiang poplar (deep) saplin auitumn saplinkg Yeryal watering 1-2 tiumes anl

Protectios rOOd Second white 1 15X330403X60 planting Spring 2 - 3 years growSd I grade Continued three years .ln whirl respectively planting 2 rowl a- 10 forest belts popla 0 I 32 33 pit atutumn (tp saln m aligloqsen the soii,hoeaupweedslItime in eac long both sides of f m

yeor.y:aray watering 1-2 times l canal R -

Source: Gansu's eProject Feasibility Study Report - OCtober 1995it

- 210 -

ANNEX IAppendix 6Sheet 1 of 7

Canal Linina

Gansu's Experience in Canal Lining

1. Located in northwest China, Gansu has a dry and cold climate. TheProject area in Hexi Corridor has annual average rainfall of 47 - 160 mm,evaporation of 2,000 - 3,050 mm, average monthly low temperature of -8.1 to -16.7 degree C, with absolute low temperature of -24 to -29.3 degree C. Theground freezing depth ranges from 0.8 to 1.8 meters. Therefore, canal liningworks for preventing seepage and their damages by frost heave during winterare of particular importance in Gansu. In this respect Gansu has accumulatedconsiderable years of successful experience. Types of canal lining, based onmaterials to be used, are as follows:

(a) dry stone blocks(b) block in cement pitching (conglomerates or cut stone blocks)(c) concrete (precast and in-situ)(d) plastic membrane

The type of canal lining used depends on the availability of local materials,swelling characteristics of the base soil materials, water table level, andflow velocity in canals. Canal lining cross-sections are mostly steppedtrapezoidal and also some with parabolic base, vertical sides, and U-shaped.Cross-sections with parabolic base and U-Shaped are more resistant to frostheave caused by swelling of soil. But U-shaped sections are generally ofprecast concrete units or cast in-situ concrete, mostly used on smaller canalsbelow branch canal with lower flow velocity.

Dry Block Conglomerate Lining: Mainly used in areas where localconglomerate stones are available at site. Roughness factor is about 0.0275to 0.03. Lining thickness is less than 20 cm and can stand up to velocity of3 m/sec. Although economic but less effective in seepage prevention,averaging with 2.6% per km canal seepage losses.

Cut Blocks in Cement Pitching: The roughness factor is about 0.0275 andlining can stand flow velocity up to 4 m/sec. Resist frost heave better thanconcrete lining.

Concrete Lining: This is the main type of lining used in Gansu. It hasbeen extensively used in mid- and down-stream areas of Shule River and HedongLoess Area where conglomerate stones are scarce. Due to difficulty inrepairing cracks of in-situ concrete lining caused by frost heave, moreprecast concrete linings have been used instead. Seepage loss is about 0.4%per km canal with seepage rate of 0.12 to 0.14 cu.m./m2/day.

I Condensed and translated from a technical paper prepared by Gansu DesignInstitute.

ANNEX I

- 211 - Appendix 6Sheet 2 of 7

Polyvinal Plastic Membrane: There two methods of use. First, themembrane is used together with concrete lining. The concrete panels preventscouring and damages to plastic membranes and its ageing through weathering.This method is used mostly on canals with larger flow velocity. Second, themembrane is covered with a layer of protective soil or gravel. This methodcan only be used in area with high water table and low velocity flow in canal(generally less than 1 m/sec). Seepage prevention by plastic membrane iseffective with seepage losses at 0.01' per km canal or seepage rate of 0.12 to0.14 cu.m./m2/day.

Frost Heave Prevention Measures

2. Based on Gansu's several years of experiment and operationexperience, the main method is to replace the silty or clayey sub-soilsupporting canal linings with a more sandy and gravely soil materials. Thethickness of sub-soil replacement layer depends on natural site conditions.In areas with lower water table, thin layer of light soil with sandy gravelsoil beneath, the thickness of sub-soil replacement layer, including thethickness of concrete lining, should be not less than half of the maximumfreezing depth. This would basically eliminate damages caused by frost heave.In areas with higher water table, canal bed with clayey or heavy loam soils,the thickness of replacement layer should be 70% to 80% of the maximumfreezing depth to be effective against frost heave.

Proposed Canal Lining for Gansu Hexi Corridor (Shule River) Project

3. Gansu Hexi Corridor (Shule River) Project will cover 98,200 ha ofirrigated land in Changma, Shuangta and Huahai Irrigation Areas. The canalsystem includes trunk, main, sub-main, branch, lateral, sub-lateral and fieldcanals with varied soil conditions and water table levels. The maximumfreezing depth also varies. Therefore, the types of canal lining describedabove will be encountered. The five types of canal lining proposed for theHexi Project is further clarified below:

(a) Type I: The canal bed is constructed with either in-situ or precastconcrete with side slopes in precast concrete slabs or panels without sub-soilsandy gravel replacement layer. This type of canal lining is to be used forcanals running over gravely soil and without the need for frost heaveprevention, and with flow velocity less than 3.5 m/sec. The precast units canbe mass produced and installed with flexibility in work schedule. The Type Ilining will be used mostly on the branch canals of the New West Main Canal andthe connecting canals to the Old West main Canal in Changma Irrigation Area,most of the Xihu sub-main canals, and the first 4.6 km of the Sub-main CanalNo. 1 of the Changma Trunk Canal.

(b) Type II: The canal bed and slopes will be constructed with in-situconcrete without the sub-soil replacement layer. This type of lining is to beused in area with sandy/gravely soils with no frost heave conditions. It canstand up to flow velocity of 3.5 to 5.0 m/sec. This type of lining isstructurally good with little seepage losses, but less flexible inconstruction scheduling than Type I. It will used mainly on improvement of

- 212 - ANNEX IAopendix 6Sheet 3 of 7

the Changma Trunk Canal, Changma New West Canal, Sandaoguo Conveyance Canal,and others.

(c) Type III: The canal bed is laid with block pitching and side slopeswith precast concrete units with 40 cm of sub-soil replacement layer. Thistype of lining is used on canals with steeper gradient, higher flow velocity,higher degree of material movement and scouring due to soil upheaval. Theblock pitching is generally 25 to 30 cm and side slope precast units of 8 cmthickness. The sub-soil replacement layer will depend on the soil upheavalcharacteristics, freezing depth, sub-soil conditions, and cross-section ofcanals. This type of lining will be used at the end stretch of the ChangmaEast Main Canal and the upper stretch of Huahai Trunk Canal (Ch. 7+750 andabove).

(d) Tvye IV: The canal bed is laid with in-situ concrete with sideslopes in precast concrete units of 8 cm (6 cm for branch canals), with sub-soil replacement layer of sandy/gravely soil of 60 to 80 cm thick. This typeof lining is used for canals with flow velocity up to 3.5 m/sec and higherdegree of frost heave is expected. It will be used for Changma North MainCanal, Anxi North and South Main Canals, and part of Xihu Sub-main CanalImprovement.

(e) Tvye V: This type uses plastic membrane of 0.18 to 0.2 mm and acover protective soil layer. The soil protective layer consists of a toplayer 40 to 50 cm of gravel and a bottom layer of loam soil. This type oflining is suitable for canals with severe frost heave, flatter gradient andlower flow velocity. For higher flow velocity, the top protective layer willneed to be protected by a layer of coarser gravely materials to preventscouring of the protective layer. This type of lining will be used in the newstretch of the Anxi North Main Canal, Changma North Sub-main Canal, and middlestretch of the existing Changma East main Canal, and branch canals with lowflow velocity.

Typical Designs

4. The five typical designs proposed and their respective estimatedconstruction cost is summarized in the attached technical characteristicstable.

Construction, Operation and Maintenance

5. It is important to consider the following:

(a) In-situ concrete-lined canals are difficult to maintain and repairafter damaged. Therefore, its quality of construction for the foundation baseand in-situ concrete should be high to avoid deformation and consequent frostheave damages.

(b) For precast concrete-lined canals, the high quality of precastconcrete units should be ensured and the mortar jointing should be tight andfirm to prevent cracking and falling of the jointing materials, leading to

-213 - ANNEX I

Appendix 6Sheet 4 of 7

seepage. The seepage water will carry clayey soil materials and contaminatethe sub-soil sandy/gravely replacement layer, thereby inducing frost heave ofthe replacement layer and causing damages to the lining.

(c) Expansion/contraction joints should be properly constructed,otherwise seepage will lead to contamination of the replacement layer and itssubsequent frost heave.

(d) The clayey soil content of the sandy/gravely sub-soil replacementlayer should confirm to design specifications, otherwise the replacementlayers will not achieve its swelling/upheaval prevention functions.

(e) All canals with linings should stop operation before freezing toprevent damages by icing action.

(f) All canals with linings should be inspected according to timedschedule and repaired in time to avoid major problems occurring.

CANLING.XLS

GANSU HEXI CORRIDOR PROJECTITvii Desiens of Canal Ifning and Construction Cost

Type of Lining Canal to be used | SoUl Conditions Designed Canal Side Designed Lhning cUes Replacement Cost of RemauksFlow Depth Slope Velocity Base Side Layer Lining

________________ mun3/sec m ni/sec cm cm cm Y/m \a

_ _pe I Changma East M.C. Sandy/gravel base

In-situ and/or relaigmnent iront soiL no swelling 7.0 - 7.1 1.9 - 2.4 1.25 1.43 - 1.92 10 8 None 252precast concrete stretch expected_

without sub-soil Ch inm Trunk

replacement layer Sub-M.C. Topportion same as above 2.4 - 2.9 1.17 -1.22 1.25 <3.0 8 8 None 1504.59 km

Changma New WestMC Sub-main canals _

and connecting sub- same as above 2.0 - 3.7 1.1 1.25 <3.0 8 8 None

rmain canals to existing _

_____e_II __Changma Trunk Canal Gravel and conglo- _ _ Add in-situ concrete

In-situ concrete Improvement strtch merate, low waler 35 2.6 1.25 3.7 10 10 onto existing cong-withour sub-soil table level loMterate lining.

replacement layer Changa New West Gravel andMainCanal cmngonrates 39 - 48 1.3 - 3.2 1.5 1.8 - 4.95 12 10 223 - 474

T jefIll Changma East M.C. Fine loam soil withBlock pitchmg to end stretcb sandy gravel under, 2.1 1.4 1.25 1.35 - 1.84 30 8 50 - 70 476

base and slopes in block stone avail. _

atconcrete, Huahai Trunk cnaL Stony soiL brokenwith sub-soil above Ch7+750 km stone quarry nearby 9.4 2 1.25 2.1 - 3.45 30 30 30 592replacement layer

Tvpe IV Changma West MClBase in situ or pc sub-main canals Fine loam soid 2.0 - 3.7 1.1 1.5 <3.0 8 8 40 - 60concrete, slopes in Changna North MCpc conc., with sub- improvemet stetlch Fine loam soil 2.6 -5.1 1.4 - 1.55 15 1. 24 - 1.4 8 8 50 - 70 443soil replacement Anxd Norlh MC Alluvial deposit of Itn_ _ _ _

layers improvement stretch snad, gravel and 6.3 - 25 1.8 - 2.7 1.5 1.93 - 2.27 8 8 60 - 70 599 d r Zsoil (10%) __ _o X

Anxi South M.C. Soil with broken 4 ___ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~Ul ' I Hitnprovement stretch stone and gypsum, -____ __X X

I0% soil and low 6.8 - 7.91 1.6 - 1.8 1.5 1.55 - 2.09 8 8 50 - 60 o

water table '7m IHuahai New Trunk Soil with brokenCanal, afiter Ch 7+750 stone 5.9 1.5 1.25 2.43 - 3.53 8j 8 50

Tpe V Anxi North M.C. Fine clay and loam, i____

Plastic membrane new construction high water table, 3.4-6.3 -5-1 91 1 751 1.32 Membrane 0.2 mm 50 278 Slope is 1:0.75 wherewith protective g Bravel soil beneath _ _ _ _ _ [ |membrane is buried

cover layer Changma North M.C. Top layer of fine _ - -1j I sub-nain canal |loaTi, bottom layer | tI IIIIII

of fine clay, high 1.3-2.75 1.4- 1.6 1.75 0.8-0.93 Membrane0.18mm | 50 211 Slope is 1:0.75 wherej |______________ watertable I _ j j - i I_ membrane is buried

\a: Cost is for lini on1y, excluding earthwork costs in excavation and backfilling. 4 Pa _11 I _-___

ANNEX IAppendix 6Sheet 6 of 7

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ANNEX I216 Appendix 6

Sheet 7 of 7

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- 217 -ANNEX 3

Selected Documents and Data Available in Project File

1. Feasibility Report for Gansu Hexi Corridor Project (Revised: August 1995)

2. Implementation Plan for Gansu Hexi Corridor Project (December 1995)

3. Report on In-Migration Settlement and Appendix (October 1995)

4. Resettlement Action Plan & Appendix for Changma Reservoir (October 1995)

5. Integrated Training Plan for New Migrant Farmers (October 1995)

6. Feasibility Report on Livestock Development and Production (Revised:

7. Feasibility Report on Crop Production and Support Services (June 1995)

8. Feasibility Report on Afforestation (June 1995)

9. Main Report: Environmental Impact Assessment (EIA) (June 1995)

10. Summary Report: Environmental Impact Assessment (EIS) (June 1995)

11. Environmental Action Plan (EAP) (August 1995)

12. Feasibility Report on Irrigation and Drainage Vol. I & II (June 1992)

13. Changma Reservoir Water Balance Simulation Study (May 1995)

14. Dam Safety Panel Report (April 1995)

15. Dam Break Analyses for Changma Reseervoir and Chejinxia Reservoir(September 1995)

16. Project Cost Estimates Tables (compiled with COSTAB program)

17. Project Financial and Economic Analysis Tables (compiled by FARMOD program)

I

-4

4i

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co~~~~~~~~~~~~~~~~~~~~~~~~~~xN"id 1H11

- 219 - Chart 2

GANSU HExI CORRIDOR PROJJECT

Organization Chart for Emigration

and Land Settlement Management

Gansu World Bank Projects

Implementation Commission

(GWBPIC)

Settlement Advisory & Shule River Project Local Govt. Consultation

CoordinationCo t ................ . .Managemnet Bureau (PMB) .. Group (LGCG)

(SACC)

-Settlement & Social -Jiuquan Prefecture Govt.

Lanzhou University -Pra. Civil Affairs Bureu Admin. a Personel -Yumen City Govt.

-Finance & Budget -1xi County Govt.

-Engineering Conatrn. -Yumen Township Govt.

Prev. Poverty Allev. Offe Prov. State Farma Bureau -Procurement & Supplies mine State Farm

-1Monitoring & Evaluation uanghua State Farm

-Lanzhou Rep. Office iaowan State Farm

uanghUa State Farm -Agr-Sco. Prodn. & Dev.

~~igMa State Farm

-duhi State Farm

|Jiuquan Profscru Got ixa Prefcueoot

-xmnCity Govt. -~ogigCuty Govt.

-SxiCounty Govt. -ogiang County Govt.

ishisha County Govt.

iaCotGvhan County Govt.

|Gananl Prefecture Govt. P cepu rofcue ot

nCounty Govt. a xin Cuty Govt.

zuCounty Govt. -1auCounty Govt.

-Dnchang County Gcovt.

[Dingxi Prefectr: S¢t.[q thizAfars :C:-mi..i]n

4 inxian County Gavt.

Note: At each emigrating county are:

(a) County Emigration & Settlement Com.

asaited by the County Settlment Office,

(b) Tovnahip/Village Emigration Committ

- 220 -

Shule River Basin Water Resources

Management Bureau Chart 3Organization Chart

Shule River Basin Water

Resources Mlgm't Bureau

(Total Staff: 1250)

Changma I. A. Div.ion Headquarters Office Hu hai I. A. Division ahtot I. A. Division

at Yumen Township at Yumen Township in Hu hai Townhip *t Anxi Couty

(Staff: 332) (Staff: 653) (Staff: 80 (Staff: 105)

[Trrunk Canal O&M Office Canal OSM Office Canal 01OK OfficeI-west Mlain Canal 0114 Off. Water lava Division Irrig Research & Extens. at Main Canal 0SM Of f outh Main Canal OSM Off.L-East Main Canal Off fat/North MC O&M Off orth Main Canal OM Off.

'North Main Canal O0M Off. ihu Area Oim Office

Salinized Soil Improvesmt

-rrig. Exp. Station

Irrig. O&M Research

Monitoring & Evaluation Engineering Mgm't Div.

K vironmental monitoring lectricity Supply Maint.

Settlement monitoring oesunication Maintenance

-rrig. Works Maintenance

|Economic Enterprises Div. O | peration Monitoring,

|Simulation & Dispatch

Anti Flood/Draught Office

L Rt MoTiitoring Center

|General Admin Divimion| lParty/Public Realtion Off

|-Labor and Wages |-Party Liaison Committee

-Personnel Affairs -- Worker Association

General Administration -Unity Coemission

Welfare i Benefit Affairs -Federation of Women

Hydroelectric Division Security Sub-bureau

K et Main Canal Station

Dam Main Station

angin Reservoir Station

Planning/Finance Division mReervoir Magement Div.

H ngma Reservoir

huangta Reservoir

-einxia Reservoir

- 221 -00 Chart 4

T~~~~~~~~~~~

Li

< 3 g~~~~~~

mm,, mm

1:! 'T r g ] |~~

1 GANSU HEXI CORRIDOR PROJECT

1996 1997 199 1999 2000 2001 2002 2003 2004 2005ID Task Name Q41Q1 IQ21Q3jQ4Q1 1Q2iQ31Q41Q11Q2jQ3041Q1Q21Q30Q40Q1a213Q41 21Q31Q41Q 0Q2Q3Q41 234 1Q2)304Q104 203041 CHANGMA DAM

2 Changrna Reservoir

3 Temporary works

4 Silt flushing tunnel

Main embankment -6 Spillway

7 Intake tunnel for hydr

8 Other permnanent wor

9 Reservoir Resettlernent

10

11 IRRIGATION AREAS DEV,

12 Chargm Inrig Area _

13 Trunk canal improv/e Ii--m

14 West Main Canal

15 East Main/Sub-main _|

16 North main canal

17 Main/branch drains 118 Other Permanent Wo

19 On-farm works

20 Land levelling

21 Shuangta lrrig. Area _ m ICD

22 South main/Sub-mai ____I H

Task Summary Roled Up Progress

Date: 12/19/9 Progress RobdUp Task a

Milestone Rolled Up Mlestone <


_ _ _ __ _ _ _ _ 1 1996 1| 19981999 i 2000 r 2001 r 2002 7 2003 r 2004 200$- ~ ~ ~ ~ ~ ~ ~ ~ ~ 01~~~199 00QQQ 20 4QI2Q~4IiQ 3~1Q~j40 2 0ID Task Name ___ _C'2_ _-_____4 ___2_3 _ q 4 1___ __ _____4 Q IQ2 13 I__ _i_____44___ _

23 North marniSub-main .

24 Xihu Sub-main Cana! _

25 Main/Branch Drains

26 On-farm works

27 Land Levelling

28 ! Huahai Irrig. Area . .I I

29 New headworks

30 Trunk Canal externsio ..

31 West Main Canal

32 North main Canal -33 East main Canal

34 Branch canals .

35 Main/Branrch Drains

36 Other permanent wor _

37 On-farm Works - _

38 Land Levelling . 1i i39 I rrig. Mont.,Sirnualtion.

40 _ .

41 AGRI. SUPPORT SERVICES * i.qi

42 Anxi CATEC __C

43 Yumen CATEC ____ '-1(D

44 Huahai CATEC . '|4

Task Summary Rolled Up Progress

Dat: 12t19/95 Progress Roled Up Task

Milestone Rolled Up Miltestone K)


_ _ 1 1996 11S997 1998 1999 2000 2001 2002 2005ID | Task Name ~ ~ 0 Q4|Q |Q21Q3IQ4I101IQ2lQ3lQ41QI IQ2lQ3IQ4lQl IQ2103IQ4lQl IQ2IQ3IQ4IQl1IQ2TQ3IQ1IQI3I4Q1QI3lQ4]Ql Q21Q3IQ1IQI3QID TakName 041Q0 412341234123400Q0000Q000Q 1234010l 20Q30445 Township Extension Statio _

46 Seed Company Upgrading

47 Township Agri-mach Stati

48 Fuel depots

49 Research & Expernments

50

51 AFF ORESTATION

52 Changma Irrig. Area

53 Mgm't Center S Stati

54 Nursery & fruit tree pl

55 Fueiwood forest . _

56 On-farm windbreaks . _

67 Shuangla lrrig. Area *-I

58 Mgm't Center & Stali I I

59 Nursery & fruit treepl ,.pi.n

60 Fuelvvood forest ..

61 On-farm windbreaks _

62 Huahai Irrig. Area

63 Township Mgm't Stati I64 On-larm windbreqak .__

65 Orchard development

66 Environ. Protective Fore


! e: 1OuuR Rr Progress Rolled Up Task

Milestone Rolled Up Milestone W


1996 1997 1998 | 1999 | 2000 2001 2002 2003 | 2004 2006ID Task Name Q4101 lQ20Q31040Q1 IQ2l031041Q1 IQ23Q43Q1 IQ20Q3lQ40Q1 0Q20Q30Q40Q1 0Q21Q31Q40Q1 0Q20Q30Q40Q10 Q20Q30Q4010 IQ2lQ3lQ401 0Q20Q30Q467

68 LIVESTOCK DEVELOPMENT I

69 Changrna Irrig. Area

70 Vel, service system

71 Breeding system

72 Forage processing

73 Commercial producti

74 Shuangta Irrig. Area _

75 Vet service system .

76 Breeding system


78 Commercial producti I79 Huahai Irrig. Area I I I

80 Vet service system

81 Breeding system _


83 Commercial producti

.4

86 ENVIRON. PROT/REHAB I

86 Monitoring & miigation __ _

87 Rehab. of Emigration Area I m

82 fD~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~f83


DB)SCMlRatle M1 R11OT Progress Roiled Up Task

Miestone Roiled Up Milstone <2>. >~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~r


_ 1 1996 1 1997 1 1998 1 1999 2000 _ 2001 _ 2002 2003 2004 2005ID Task Name Q401 2030401 Q2 34|1 0Q2-30Q4010Q 030010Q 2030Q40Q10IQ20304 02041 02 0E89 LAND SETTLEMENT

90 Changma Irrig. Area

91 Zhahua

92 Tuhulu

93 Wangjiacao

94 Badaogou

95 Qiduntang

96 Daposhang S/F

97 Beishihe S/F

98 Bantang S/F . . .. ...._~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.... .. .. ...9 Banlang S/F h : ~~~~~~~~~. ... . . .. ..:.: ..... .:. ..... . .. . :::.. ::-

99 Shuangta Irrig. Area

100 Yanbohu -_- ------ -_-_-------_-_-----

101 Wujia huang = .. ~~~~~~~~~~~........... .... ; ........ ..... . .. . .. ....... . ................ 101 Wujiazhuang ......

102 Lianhu S/F . ....: . .:

103 Xiangyang ........

104 Baiqibu~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ . ....... .. .. .::.:.:. :.. .::. :-.: .: .104 Baiqibu-

105 Huahai Irrig. Area

106 Bijiatang

107 Kuantang

108 Dushangzi S/F __._C

109

l10 TRAINING & TECH. ASST

Task Summary Rolbed Up Progrcss

Date: 12/19/95 Progress Rolled Up Task

Milestone Rolled Up Milestone <22


1996 1997 1993 | 1999 | 2000 2001 2002 2003 2004 2005

ID Task Name 04Q01 Q02lQ3lQ401 IQ2103Q4010 IQ2lQ3lQ40Q41 022Q30401 Q203Q4 0102341Q2034102Q30Q401Q Q20Q30Q40QlQ21Q3104

111 Stafftraining&studytout - -- --

112 Migrant training

113 Technical assistance . _

114

116 ENGR. &PROJ. MANAGEME ____111_______________ .- . . . . . .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ------

.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.

Task Summary Robd Up Progress 0

Date: 12/19{95 /I?T ~~~~~Progress Roled Up Task a

Mihstonle *Rolled Up Milestone <> o

Estimated Disbursement Schedule

16 0 ......... ... . ....... .. ..... ..... . ... ........ . . ... ... ...... ...... ........ .... .. .... . ...... . ..... .

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

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

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Calendar year

IBRD 27591

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NEW SETTLEMENT SITES R EXISTING HEADWORK

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- NEW HEADWORK --- EXISTING BRANCH CANALS

NEW RESERVOIR FOREST BELTS

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SELECTED CITIES AND TOWNS O -

, PROVINCE CAPITAL

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Report No: 15163 CHAType: SAR