Request for CEO endorsement/approval

Project Type:

the [1]

Submission Date: February 23, 2008

Re-submission Date: March 5, 2008

Expected Calendar
Milestones / Dates
Work Program (for SCCF FSP) / July, 2007
GEF Agency Approval / March, 2008
Implementation Start / July, 2008
Mid-term Review (if planned) / June, 2010
Implementation Completion / Dec., 2011

part i: project Information

GEFSEC Project ID:

gef agency Project ID: P105229

Country(ies): People's Republic of China

Project Title: Mainstreaming Climate Change Adaptation in Irrigated Agriculture Project

GEF Agency(ies):

Other Executing partner(s):

GEF Focal Area: Climate Change

A.  Project framework

Project Objective: The project development objective is to enhance adaptation to climate change in agriculture and irrigation water management practices through awareness raising, institutional and capacity strengthening, and demonstration activities in the 3H Basin.

Project Components

/

Indicate whether Investment, TA, or STA**

/ Expected Outcomes /

Expected Outputs

/

LDCF/SCCF Financing*

/ Co-financing* / Total ($)

($)

/

%

/

($)

/

%

1. Identification and Prioritization of Adaptation Options. / STA & TA / Development of adaptation options, through CC impact assessment, gap analysis, and selection and prioritization of CAD adaptation measures based on local CC conditions. / (i) The baseline, projected scenarios, and possible long term impacts of climate change identified for the project area through analyses of relevant hydraulic and agricultural production models and of the results of economic research and surveys.
(ii) Menu of possible adaptation measures developed based on scientific analysis and stakeholder participation.
(iii) Project demonstration areas identified based on appropriate selection criteria. / 495,600 / 100 / 0 / 0 / 495,600
2. Demonstration and implementation of adaptation measures. / TA & Investment / Implement relevant adaptation measures ed in selected demonstration areas and by participatory stakeholders to enhance CC adaptation in agricultural practices and irrigation water management. / (i) Adaptation measures developed and implemented in the demonstration areas (ha under each different measure).
(ii) Climate change adaptation concept/measures integrated with IAIL3 design and implementation (covered by % of the project area).
(iii) Acceptance by farmers of adaptation measures (No. of households). / 2,246,000 / 4.6 / 46,182,000 / 95.4 / 48,428,000
3. Mainstreaming adaptation in the national CAD program and institutional strengthening. / TA & STA / 1. Formulate recommendations and an action plan to address CC adaptation in irrigated agriculture, and thus integrate adaptation into CAD activities;
2. Enhance awareness of farmers, members of WUAs/FAs, technical staff, and officials on the need to improve CC adaptation in agriculture and irrigation. / (i) SOCAD/POCAD/COCAD webpages, booklets and other publications, and mass-media coverage incorporating adaptation to climate change knowledge and measures.
(ii) Consultations, coordination meetings and training on adaptation to CC among SOCAD, MOF, NDRC, CAS, and other concerned technical line agencies.
(iii) Policy recommendations and the action plan to integrate CC adaptation into CAD program formulated.
(iv) Climate Change Adaptation Monitoring and Evaluation mechanism in operation. / 1,768,400 / 31.7 / 3,818,000 / 68.3 / 5,586,400
4. Project management (show details in Table E) / 490,000 / 49.5 / 500,000 / 50.5 / 990,000
Total Project Costs / 5,000,000 / 50,500,000 / 55,500,000

* List the $ by project components. The percentage is the share of LDCF/SCCF and Co-financing respectively to the total amount for the
component, ie., the percentage for each component will be added up horizontally to 100%.

** TA = Technical Assistance; STA = Scientific & technical analysis.

B. Financing Plan Summary For The Project ($)

Project Preparation* / Project / Agency Fee / Total at CEO Endorsement / For the record
At PIF
(select fund)SCCFLDCF Grant / 316,000 / 5,000,000 / 531,600 / 5,847,600 / 5,350,000
Co-financing / 500,000 / 50,500,000 / 51,000,000 / 50,000,000
Total / 816,000 / 55,500,000 / 531,600 / 56,847,600 / 55,350,000

* Please include the previously approved PDFs and PPG, if any. Indicate the amount already approved as footnote here and if the
LDCF/SCCF funding is from GEF-3. Provide the status of implementation and use of fund for the project preparation grant in Annex D.

C. Sources of confirmed Co-financing, including co-financing for project preparation

(expand the table line items as necessary)

Name of co-financier (source) / Classification / Type / Amount ($) / %*
Government of China/SOCAD / (select)NGOPrivate SectorBeneficiariesFoundationImpl. AgencyExec. AgencyNat'l Gov'tLocal Gov'tMultilat. AgencyBilat. AgencyOthers (specify) / (select)GrantSoft-loanHard-loanGuarantee / 31,000,000** / 60.8
IBRD / (select)NGOPrivate SectorBeneficiariesFoundationImpl. AgencyExec. AgencyNat'l Gov'tLocal Gov'tMultilat. AgencyBilat. AgencyOthers (specify) / (select)GrantSoft-loanHard-loanGuarantee / 20,000,000 / 39.2
(select)NGOPrivate SectorBeneficiariesFoundationImpl. AgencyExec. AgencyNat'l Gov'tLocal Gov'tMultilat. AgencyBilat. AgencyOthers (specify) / (select)GrantSoft-loanHard-loanGuarantee
(select)NGOPrivate SectorBeneficiariesFoundationImpl. AgencyExec. AgencyNat'l Gov'tLocal Gov'tMultilat. AgencyBilat. AgencyOthers (specify) / (select)GrantSoft-loanHard-loanGuarantee
(select)NGOPrivate SectorBeneficiariesFoundationImpl. AgencyExec. AgencyNat'l Gov'tLocal Gov'tMultilat. AgencyBilat. AgencyOthers (specify) / (select)GrantSoft-loanHard-loanGuarantee
(select)NGOPrivate SectorBeneficiariesFoundationImpl. AgencyExec. AgencyNat'l Gov'tLocal Gov'tMultilat. AgencyBilat. AgencyOthers (specify) / (select)GrantSoft-loanHard-loanGuarantee
(select)NGOPrivate SectorBeneficiariesFoundationImpl. AgencyExec. AgencyNat'l Gov'tLocal Gov'tMultilat. AgencyBilat. AgencyOthers (specify) / (select)GrantSoft-loanHard-loanGuarantee
Total Co-financing / 51,000,000 / 100%

* Percentage of each co-financier’s contribution at CEO endorsement to total co-financing.

** Also includes US$ 0.5 million in co-financing for project preparation from the Government of China.

D. LDCF/SCCF Resources Requested by Agency(ies) or Country(ies)*

GEF Agency / Fund Type / Country Name/
Global / (in $)
Project Preparation / Project / Agency
Fee / Total
(select)World BankUNDPUNEPAsDBAfDBEBRDIADBFAOUNIDOIFAD / (select fund)SCCFLDCF
(select)World BankUNDPUNEPAsDBAfDBEBRDIADBFAOUNIDOIFAD / (select fund)SCCFLDCF
(select)World BankUNDPUNEPAsDBAfDBEBRDIADBFAOUNIDOIFAD / (select fund)SCCFLDCF
(select)World BankUNDPUNEPAsDBAfDBEBRDIADBFAOUNIDOIFAD / (select fund)SCCFLDCF
(select)World BankUNDPUNEPAsDBAfDBEBRDIADBFAOUNIDOIFAD / (select fund)SCCFLDCF
(select)World BankUNDPUNEPAsDBAfDBEBRDIADBFAOUNIDOIFAD / (select fund)SCCFLDCF
Total Resources

* No need to provide information for this table if it is a single country and single GEF Agency project.

E. Project management Budget/cost

Cost Items

/

Total Estimated person weeks

/

LDCF/SCCF

($) /

Other sources ($)

/

Project total ($)

Local consultants*

/

181.3

/ 290,000 / 0 / 290,000

International consultants*

/ 0 / 0 / 0 / 0

Office facilities, equipment, vehicles and communications

/ 200,000 / 60,000 / 260,000
1. Office supplies / / 0 / 20,000 / 20,000
2. Communications/coordination / / 100,000 / 20,000 / 120,000
3. Print and publication / / 100,000 / 20,000 / 120,000
Travel / / 0 / 440,000 / 440,000
1. Local travels for project supervision and guidance / / 0 / 200,000 / 200,000
2. Cross regions travels for project supervision and guidance / / 0 / 240,000 / 240,000
Total** / 181.3 / 490,000 / 500,000 / 990,000

* Provide detailed information regarding the consultants in Annex C.

** The project management costs would cover the costs only for SCCF grant activities, including project management costs to be incurred for these SCCF activities by the national PMO, six provincial PMOs, and ten county PMOs (17 PMOs in total). The additional counterpart funds (about US$1.76 million) for the related IAIL3 project management activities are not included in the above table.

f. Consultants working for technical assistance components:

Component

/

Estimated person weeks

/

LDCF/SCCF ($)

/

Other sources ($)

/

Project total ($)

Local consultants*

/ 854 / 1,023,800 / 342,100 / 1,365,900

International consultants*

/ 8 / 23,000 / 0 / 23,000

Total

/ 862 / 1,046,800 / 342,100 / 1,388,900

* Provide detailed information regarding the consultants in Annex C.

g. describe the budgeted m&e plan:

Under the proposed GEF SCCF project, US$221,400 will be allocated for a results-based monitoring and evaluation system (M&E). See details in following table:

Type of M&E activity / Responsible parties / Budget US$ excluding project team staff time / Time frame
M&E training workshops / SOCAD/POCAD/COCAD / $120,000 / Annual
M&E system and related indicators development / SOCAD/POCAD / $26,600 / First year
Data collection, analysis and reporting / SOCAD/POCAD/COCAD / $57,900 / Annual
Establishing sample/pilot sites / POCAD/COCAD / $16,900 / First year
Total indicative cost / $221,400

The project M&E will be integrated with the M&E system for the IAIL3 project at each project management level. The investment costs of M&E system are composed by M&E training workshops (US$120,000), M&E system and related indicators development (US$26,600), data collection, analysis and reporting (US$57,900), and establishing sample/pilot sites (US$16,900).

The specific tasks to be carried out under the M&E plan include establishing the management information system (MIS), the monitoring and evaluation system (MES) and the dynamic information framework (DIF) systems.

The SCCF project MIS will focus on project implementation and management and will be the basis for physical and financial progress monitoring and reporting and will be coordinated with the IAIL3 MIS. The project MIS will produce physical and financial progress monitoring reports (tables), procurement monitoring reports, and disbursement monitoring reports and withdrawal/disbursement requests, based mainly on procurement data entered into the system by county PMO staff. MIS data would be sent to PMOs at higher levels electronically, consolidated at provincial and central levels, and provided to World Bank in semi-annual progress reports and for supervision reviews. The SCCF project MIS will be separate from the IAIL3 MIS and will produce progress and financial monitoring reports for the SCCF project which are separate from IAIL3 progress reports.

The project MES will monitor project progress in terms of outputs and evaluate and analyze project outcomes. The MES for the SCCF project would be coordinated with and integrated into the ongoing computerized MES for IAIL3, but would include specific key indicators for the SCCF project. The MES will produce separate MES reports for the SCCF project and for IAIL3. SOCAD, POCADs and COCADs would be responsible at their various levels for maintaining the project MES, ensuring its accuracy and quality, and undertaking analysis as needed for evaluation of project outputs and outcomes; MES results would be provided as required in periodic reports, which would include the agreed key output and outcome indicators in coordination with financial and physical progress reporting through the MIS.

A “Dynamic (Landscape-Water Resources) Information Framework (DIF)” will be developed for establishing baseline conditions and analyzing overall climate change and project impacts. The system will be managed by SOCAD, and be publicly available. The target audience includes decision makers and PMO staff in SOCAD/POCADs/COCADs, especially those involved in activities related to climate change adaptation. It would also play an important role to widely share lessons learned during project preparation and implementation.

Progress Reporting. Progress reporting to the Bank using the MIS and MES would be provided by SOCAD and POCADs twice a year, by March 31 and September 30. SOCAD and POCADs would carry out internal semi-annual supervision reviews and reviews by experts and submit their supervision reports to the Bank shortly before Bank supervision reviews.

Details of the Results Framework and arrangement for project M&E are presented in Annex A.

part ii: project justification

a. describe the project rationale and the expected measurable adaptation benefits:

China ranks at the bottom 25 percent of countries in water availability per capita. Within China, the per capita availability of water in the Huang-Huai-Hai Basin (3H Basin) is only about one-third of the national average. Water demand in the region is already high and growing. However, available water resources generally are fully allocated and often overexploited. The projected changes in climate could further decrease water availability.

It has been shown recently that grain production has been stagnant for a number of consecutive years in the 3H Basin area due in part to climate variability. Given the current global warming trend, China’s irrigation-based agriculture in this basin will be further negatively affected by climate change, and remedial measures need to be taken to ameliorate these effects. Indeed, past and current interventions generally have not addressed climate change and how to adapt to it.

The project is a pilot in the field of agricultural sector climate changing adaptation throughout China, as well as around the world. It will accumulate various experiences and lessons for other countries’ reference. This climate change project is expected to benefit global efforts to promote climate change adaptation in irrigated agriculture sector (See Annex 15 of the Project Document).

B.  Describe the consistency of the project with national priorities/plans:

Recently, China has also developed a strong policy and strategic framework to support climate change adaptation. The policy and framework identify adaptation to climate change as a national priority. Major national policy documents include:

(i) Initial National Communication on Climate Change. It submitted to the UNFCCC Secretariat in October 2004 aims to enable China to fulfill its commitments under the UNFCCC and include its Chapter three of this communication, entitled “Impacts of Climate Change and Adaptation”.

(ii) National Strategy for Climate Change. It has been recently formulated by the National Development and Reform Commission (NDRC) together with the Ministry of Finance (MOF) and another 18 national ministries. It has been under implementation after its adoption in May 2007. The strategy emphasizes the urgent need for adaptation and indicates preliminary adaptation measures. The strategy identifies agriculture and water as China’s national priorities for climate change adaptation.

(iii) New Environmental Protection Standards. As part of its 11th Five-Year Development Plan (2006-2010), China adopted new environmental protection standards, which were approved in February 2006. It provides a favorable policy framework to adopt and incorporate climate change adaptation measures in the development agenda.

(iv) Ongoing National CAD Program and the IAIL3 project. The CAD program and IAIL3 support sustainable development of modern irrigated agriculture in the 3H Basin. IAIL3 also provides an important "best practice" demonstration framework for the CAD program. Therefore, they provide a ready opportunity to introduce climate change adaptation concepts and measures in a large development program. In addition, these two programs enjoy policy and coordination support at the highest level.

C.  describe the consistency of the project with LDCF/SCCF eligibility criteria and priorities: