The World Bank Jiangxi Wuxikou Integrated Flood Management Project (P128867) REPORT NO.: RES37851 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF JIANGXI WUXIKOU INTEGRATED FLOOD MANAGEMENT PROJECT APPROVED ON MARCH 20, 2013 TO PEOPLE'S REPUBLIC OF CHINA WATER EAST ASIA AND PACIFIC Regional Vice President: Victoria Kwakwa Country Director: Martin Raiser Senior Global Practice Director: Jennifer J. Sara Practice Manager/Manager: Sudipto Sarkar Task Team Leader: Liping Jiang The World Bank Jiangxi Wuxikou Integrated Flood Management Project (P128867) I. BASIC DATA Product Information Project ID Financing Instrument P128867 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 20-Mar-2013 30-Jun-2019 Organizations Borrower Responsible Agency People's Republic of China Jiangxi Jingdezhen Municipal Water Affairs Bureau Project Development Objective (PDO) Original PDO To reduce the flood risk in the central urban area of Jingdezhen City through implementation of priority structural and non-structural measures, and contribute to establishment of an integrated flood risk management system for the City. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-82370 20-Mar-2013 06-May-2013 19-Jul-2013 30-Jun-2019 100.00 82.80 17.20 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Jiangxi Wuxikou Integrated Flood Management Project (P128867) 1. Background: The China-Jiangxi Wuxikou Integrated Flood Management Project is financed by a US$100 million IBRD loan with a Development Objective “to reduce the flood risk in the central urban area of Jingdezhen City through implementation of priority structural and non-structural measures and contribute to establishment of an integrated flood risk management system for the City”. The project was approved by the Board on March 20, 2013, the legal documents were signed on May 6, 2013 and the project became effective on July 19, 2013. The original closing date is June 30, 2019. No extension of closing date has been processed to date. The total cost of this project is US$513.70 million, of which US$413.70 million in counterpart funding is shared between central, provincial, and municipal governments. The project has four components: (1) Construction of Wuxikou Flood Control Scheme (total cost US$114.86 million, of which Bank financing is US$87.96 million); (2) Capacity Building for Integrated Flood Risk Management System (total cost US$9.40 million, which is fully financed by the Bank); (3) Implementation of Resettlement Action Plan (total cost US$384.61 million, fully financed by government counterpart funds); and (4) Project Management and Implementation Support (US$2.39 million, which is fully financed by the Bank). 2. Implementation Status: Substantial progress has been made in implementing the four components of the Project. As of May 31, 2019, the total investment completed for this project was US$ 495.21 million (RMB Y3,121 million) accounting for 96.4% of the total project investments. About 82.8% of the IBRD funds have been disbursed. Based on the current project performance supported by the project results framework updated on May 31, 2019, the Project Development Objective has a satisfactory rating. The Project Implementation is rated as “moderately satisfactory” due to the delays in component 3, as explained below. (1) Component 1: Dam Construction – Construction of civil works of the dam, installation of electro-mechanic equipment, and the construction of the power station have all been completed as planned at the project appraisal stage. Impounding of water in the reservoir has started since early April 2019. The main dam and installed electro- mechanic equipment and power plants are now being tested and results indicate that the national quality standards are being met; (2) Component 2: Flood Risk Management - 100% of the work for this component has been completed as planned at the project appraisal, including four sub-items: (a) establishment and development of flood warning decision making support system: The completed flood warning decision making support system has been test-operated since March 2018 and the results of the testing operations have been used to facilitate the flood warning and decision making by the municipal government; (b) preparation of master plan on flood risk management: The master plan on flood risk management has been reviewed and provided for reference by the government; (c) development of a demonstrative community for public awareness and engagement: The demonstrative community for public awareness and engagement has been developed with rehearsals and readiness on evacuation during a flood as an good example for the other communities to learn; and (d) construction of integrated flood management center and staff training: 100% of the construction of integrated flood management center has been completed which is now is in use, and staff have been trained and are in place for running the flood risk management system; (3) Component 3: Resettlement – substantial progress has been made in resettlement implementation: (a) 100% of the relocation of railway lines has been completed and are now operational; (b) 100% of land acquisition has been completed; 100% of household relocation contracts has been signed; (c) 98% of the new access road was completed and remaining will be completed by June 30, 2019; (d) 98% of the households have moved into their new houses; and (e) 36% of the land resources allocation among groups and households have been completed. To fully complete the items (d) and (e), the current project closing date (June 30, 2019) is proposed to be extended by 12 months, which would suffice to implement the updated Resettlement Action Plan (RAP); The World Bank Jiangxi Wuxikou Integrated Flood Management Project (P128867) (4) Component 4: Project Management - to overcome the component 3 delays, a revised Resettlement Action Plan has been approved; and the concerns and feedbacks from the resettlement householders have been addressed; (5) Based on the results of the latest ISR in June 2019, the overall SORT rating is “moderate”; the overall safeguards rating is “moderately satisfactory” (as explained below); the procurement rating is “satisfactory”; the financial management rating is “satisfactory”. Th ere have been neither overdue audits nor Interim Financial Report (IFR) so far under the Project. 3. Proposed Project Extension: Based on the above implementation status, the project activities for components 1, 2 and 4 will be fully completed by the current closing date of June 30, 2019. Regarding Component 3 (Resettlement), according to the current RAP, by December 31, 2019, the remaining 56 households (2% of the total) will move into their new houses, and the relocation of the land resources among groups and households (remaining 64%) will be completed. Additional time may be needed to complete and record all the transactions. Thus, an extension of the project closing date by 12 months is proposed. 4. The main reason for the delay is that the municipal and county governments allowed for a longer time than the originally planned to conduct stakeholder engagement and consultation during project preparation and also implementation. Originally, it was planned that the consultation should be stopped after the RAP is approved by the government, at the early project implementation. However, as suggested by the Bank’s task team, more consultations were actually carried out throughout the project implementation. Based on the feedback from the consultation during project implementation, the governments have revised the RAP and also committed to a higher amount of counterpart funds than originally budgeted. As a result from the longer engagement and consultation process, over 85% of the stakeholders and households are satisfied with the resettlement arrangements, as recorded in governments’ external monitoring and evaluation report. Based on the preparatory work already done for the pending resettlement activities and based on the experience acquired throughout the project, the risks that the remaining resettlement activities will not be completed within the extended period of time are minimal. Given the project activities for components 1, 2 and 4 will be fully completed by the current closing date of June 30, 2019, and considering that the component 3 will be fully completed in compliance with the Bank’s resettlement safeguards within the extended period, the Project Development Objective will be fully accomplished, and the overall project implementation will be satisfactory at the project closing. 5. Request from the Government for the project extension. The Ministry of Finance (MOF) sent a letter dated June 21, 2019 to the Bank requesting the Bank to extend the project by 12 months with a new project closing date of June 30, 2020 (Annex 1). Based on the request, the task team prepared the Notice of Closing Date Extension for the project (Annex 2). II. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications The World Bank Jiangxi Wuxikou Integrated Flood Management Project (P128867) IBRD-82370 Effective 30-Jun-2019 30-Jun-2020 30-Oct-2020