Xinjiang agriculture development project
 Report No: ; Type: Report/Evaluation Memorandum ; Country: China; Region: East Asia And Pacific; Sector: Agriculture Adjustment; Major
                                               Sector: Agriculture; ProjectID: P003490


China Xinjiang Agricultural Development Project (Credit 1764- CHA)

The China Xinjiang Agricultural Development project, supported by Credit 1764-CHA for US$70 million
equivalent, was approved in FY87. The project was closed in FY95, two years later than expected. Final
disbursement was made in April 1995, at which time the remaining balance of US$370,000 equivalent was
canceled. The Implementation
Completion Report (ICR) was prepared by the East Asia and Pacific Regional Office. The borrower's contribution
to the ICR is included as Appendix B. In line with the government's strategy of developing poorer, remote and less
developed areas in China, the project's main objective was to increase crop and livestock production, productivity
and farm incomes on mainly collectively run state farms in Xinjiang's arid lands. The main project components
were (a) construction of irrigation and drainage works on 32,300 ha for food, fiber, and fodder crops; (b)
improvement of 44,700 ha of rainfed pasture through fertilizing, fencing, and seeding; (c) introduction of improved
animal breeds, provision of veterinary and livestock equipment, and construction of animal sheds; (d) construction
of seven agroprocessing facilities; (e) provision of farm machinery and construction equipment; (f) construction of
housing for farmers, warehouses and other community facilities in the newly developed areas; and (g) local and
overseas training and study tours for project staff. The project was successfully implemented and achieved most of
its objectives. Land development and crop yields generally exceeded appraisal estimates. The overall rate of
return is reestimated at 27 percent, well above the appraisal estimate of 18 percent. Agricultural development
exceeded expectations, but the livestock program encountered problems, largely the result of disastrous weather.
Eight agro-processing facilities were established. Despite initial raw material, marketing and working capital
problems, they performed well and met production targets. The training program has been less successful, partly
the result of China's general reluctance to borrow for training. As a result of delays in the training program and
delays in securing counterpart funding the closing date was extended twice. Project activities particularly
benefited ethnic minorities and women, whose living standards improved considerably.

Accordingly and in agreement with the ICR, the Operations Evaluation Department rates project outcome as
satisfactory, sustainability as likely, institutional development as modest and Bank performance as satisfactory.

The lessons, partly China specific, include: (i) the need for the Bank and the borrower to agree on detailed
counterpart funding arrangements; and (ii) to pay more attention to the environmental and marketing aspects of
agro-processing components.

The ICR is satisfactory. Especially noteworthy is the very detailed project performance indicator table, and the
detailed gender analysis. However, the ICR's statement of project objectives is more ambitious than that in the
SAR. No audit is planned.