Public Disclosure Copy The World Bank Implementation Status & Results Report China Guangdong Agricultural Pollution Control (P127775) China Guangdong Agricultural Pollution Control (P127775) EAST ASIA AND PACIFIC | China | Agriculture and Food Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 15 | ARCHIVED on 29-Jan-2021 | ISR45179 | Implementing Agencies: Department of Agriculture, Guangdong Province, THE PEOPLE'S REPUBLIC OF CHINA Key Dates Key Project Dates Bank Approval Date: 27-Dec-2013 Effectiveness Date: 23-May-2014 Planned Mid Term Review Date: 23-Sep-2016 Actual Mid-Term Review Date: 28-Sep-2016 Original Closing Date: 31-Dec-2019 Revised Closing Date: 30-Jun-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed development objective is to reduce water pollutant releases from crop and livestock production in selected areas of Guangdong Province. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Environmentally Friendly Crop Production:(Cost $51.66 M) Livestock Waste Management (LWM):(Cost $125.80 M) Monitoring and Evaluation (M&E), Capacity Development and Knowledge Management (KM):(Cost $16.14 M) Project Management:(Cost $10.69 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions This implementation status report (ISR) is based on the findings of the implementation support mission (ISM) which was undertaken from December 21-28, 2020. Progress towards achieving Project Development Objective (PDO) 1/29/2021 Page 1 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report China Guangdong Agricultural Pollution Control (P127775) The project development objective (PDO) is to reduce water pollutant releases from crop and livestock production in selected areas of Guangdong Province. The achievement of the PDO is measured by two indicators: (i) Mass of Chemical Oxygen Demand (COD) pollution load reduction achieved under the project; and (ii) Nutrient load reduction (nitrogen-ammonia) achieved under the project. The project was adversely impacted by the African Swine Fever (ASF) outbreak of 2018, which is still not fully under control. This was exacerbated by the disruptions caused by the COVID-19 pandemic, especially during the first half of 2020. Despite these setbacks the project has made significant progress towards building the capacity for reducing COD at participating pig farms (PDO indicator (i)). However, the actual reduction of COD has fallen short mainly because restocking of pig farms is still ongoing. By end of November 2020, the total inventory of pigs in project supported farms was 662,918, an increase of 204,075 (up 44.48 percent) from 458,843 present in December 2019. This demonstrates that the biosecurity measures implemented by the project pig farms have brought remarkable increase in production. The combined stocking capacity of the 123 pig farms supported by the project 1,289,934 pigs. This is the number of pigs required to generate wastewater, which after treatment will reduce COD by the revised target of 36,000 tons/year by the closing date of June 2021. Significant ecological benefits have been achieved in the project areas. In double cropping rice fields, the total nitrogen in water bodies has been reduced by 3.035 kg/ha, with a reduction rate of 28.02 percent; and the total phosphorus has been reduced by 0.288 kg/ha, with a reduction rate of 28.77 percent. The total nitrogen and total phosphorus decreased by 2.792 kg/ha and 0.795 kg/ha, respectively. Based on the estimated planted areas, since the last ISM held in May 2020, the total nitrogen (TN) and total phosphorus (TP) emissions were reduced by 217.337 tons and 35.825 tons, respectively. Cumulatively, by June 30, 2020, the nutrient load reduction from the project supported crop production areas reached 2,730.91 tons, with the revised end of project target being 4,000 tons. With two cropping seasons remaining prior to the closing of the project this PDO indicator is on track to be fully achieved. Implementation Progress (IP) The physical project implementation progress recovered during the second half of 2020 following the disruptions caused by the COVID-19 pandemic during the first half of the year. Despite the easing of travel restrictions and improve flow of agricultural inputs and outputs (impacting especially Component 1- Environmentally-Friendly Crop Production due to the delays in delivering subsidized formula fertilizers and low toxic residue pesticides in project areas), COVID-19 had impacts on training and monitoring and evaluation activities of the project (Component 3 - Monitoring and Evaluation (M&E), Capacity Building and Knowledge Management). The total area under CA (Environmentally friendly tillage) in the early crop growing seasons of 2020 was 9,780 mu of which 7,800 mu (79.8 percent) were in the reduced tillage, while 1,980 mu (20.2 percent) were in the no-till rice production systems. Despite reducing rate of application of inorganic chemical fertilizers, the crop yields in the demonstration areas increased. For example, the rice yield increased by 386 kg/ha or about 3.4 percent to 11,699 kg/ha, compared to the non-project areas where rice yield was about 11,313 kg/ha. The potato yield increased by 476 kg/ha or by about 1.3 percent. Regarding Component 2 – Livestock Waste Management (LWM), good progress was made towards civil works for managing wastewater and improving biosecurity in the project supported pig farms. The cumulative number of completed LWM projects reached 125. At the same time, the cumulative number of LWM projects that are at least in the process of being accepted reached 107. This means the implementation progress of the LWM projects has reached 97 percent and 83 percent of the revised total numbers of LWM projects, respectively. Restocking of these farms increased but still participating farms are reluctant to fully restock their facilities for fear of recurring AFS outbreaks. During the ISM held in May 2020, the Guangdong leadership informed the Bank task team of its intention to scale back the LWM activities and cancel part of the IBRD loan proceeds. The reasons behind this decision were: (i) the devastating impact of the ASF outbreak has caused many pig farmers to delay restocking their farms; and (ii) the construction, commissioning and acceptance of some of LWM civil works may result in some of the final payments to fall beyond the project’s closing date. A formal request to restructure the project to accommodate these changes was made by the Ministry of Finance (MoF) via a letter dated November 26, 2020. The task team is currently processing a level 2 restructuring of the project to cancel US$19.1 million from the IBRD loan and reallocate the balance amongst the expenditure categories. Consistent with the reduced scope of the project some targets in the results framework are being revised down (COD and Nitrogen-Ammonia) and a new indicator to capture the biosecurity training and capacity building will be added. On account of the project restructuring and the implementation performance so far, the ratings of both progress towards achieving the PDO and the IP remain Moderately Satisfactory (MS). Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and -- Moderate Moderate Sustainability 1/29/2021 Page 2 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report China Guangdong Agricultural Pollution Control (P127775) Fiduciary -- Moderate Moderate Environment and Social -- Substantial Moderate Stakeholders -- Moderate Moderate Other -- Moderate Moderate Overall -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes reduce water pollutant releases from crop and livestock production IN00943527 ►Mass of COD pollution load reduction achieved under the project (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20,395.00 51,821.88 36,000.00 Date 01-May-2013 31-Dec-2019 30-Jun-2020 30-Jun-2021 IN00943528 ►Nutrient load reduction (nitrogen- ammonia) achieved under the project (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,243.00 2,730.91 4,000.00 Date 01-May-2013 31-Dec-2019 30-Jun-2020 30-Jun-2021 Intermediate Results Indicators by Components Environmentally Friendly Crop Production IN00943529 ►WHO Class II pesticide residue compliance rates (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 90.00 99.66 99.87 96.00 Date 01-May-2013 31-Dec-2019 30-Jun-2020 30-Jun-2021 No updated data in this ISR. Comments: IN00943562 ►Crop production areas adopted project promoted practices (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 38,354.00 38,322.00 28,000.00 1/29/2021 Page 3 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report China Guangdong Agricultural Pollution Control (P127775) Date 01-May-2013 31-Dec-2019 30-Jun-2020 30-Jun-2021 IN00943565 ►Clients who have adopted an improved agr. technology promoted by the project (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 108,526.00 106,038.00 60,000.00 Date 01-May-2013 31-Dec-2019 30-Jun-2020 30-Jun-2021 IN00943567 Clients who adopted an improved agr. technology promoted by project – female (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 18,195.00 17,726.00 12,000.00 Date 01-May-2013 31-Dec-2019 30-Jun-2020 30-Jun-2021 IN00943568 ►Reduction in total consumption of pesticides in project areas (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 435.18 486.50 135.00 Date 01-May-2013 31-Dec-2019 30-Jun-2020 30-Jun-2021 No updated data in this ISR. Comments: IN00943569 ►WHO Class I pesticide residue compliance rates (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 90.00 99.93 99.93 100.00 Date 01-May-2013 31-Dec-2019 30-Jun-2020 30-Jun-2021 No updated data in this ISR. Comments: IN00943570 ►Phosphorus load reduction (TP) achieved under the project (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 484.00 664.07 250.00 Date 01-May-2013 31-Dec-2019 30-Jun-2020 30-Jun-2021 IN00943571 ►BOD load reduction achieved under the project (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10,197.00 19,988.38 11,200.00 Date 01-May-2013 31-Dec-2019 30-Jun-2020 30-Jun-2021 1/29/2021 Page 4 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report China Guangdong Agricultural Pollution Control (P127775) Livestock Waste Management (LWM) IN00943530 ►Number of project supported pig farms in compliance of performance requirements (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 108.00 123.00 123.00 Date 01-May-2013 31-Dec-2019 30-Jun-2020 30-Jun-2021 IN00943563 ►Number of livestock waste management facilities constructed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 23.00 89.00 123.00 Date 01-May-2013 31-Dec-2019 30-Jun-2020 30-Jun-2021 IN00948115 ►The beneficiary pig farm from bio-safety prevention (newly added) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 62.00 100.00 Date 01-May-2013 -- 30-Jun-2020 30-Jun-2021 Monitoring and Evaluation (M&E), Capacity Development and Knowledge Management (KM) IN00943561 ►Client days of training provided (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 66,116.00 237,730.50 36,000.00 Date 01-May-2013 31-Dec-2019 30-Jun-2020 30-Jun-2021 IN00943564 Client days of training provided - Female (number) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 23,254.00 76,096.00 7,000.00 Date 01-May-2013 31-Dec-2019 30-Jun-2020 30-Jun-2021 IN00943566 ►Number of policy studies completed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 14.00 11.00 Date 01-May-2013 31-Dec-2019 30-Jun-2020 30-Jun-2021 Performance-Based Conditions 1/29/2021 Page 5 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report China Guangdong Agricultural Pollution Control (P127775) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P127775 IBRD-83110 Effective USD 100.00 100.00 0.00 70.50 29.50 70% P127815 TF-15418 Effective USD 5.10 5.10 0.00 3.90 1.20 76% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P127775 IBRD-83110 Effective 27-Dec-2013 28-Feb-2014 23-May-2014 31-Dec-2019 30-Jun-2021 P127815 TF-15418 Effective 28-Feb-2014 28-Feb-2014 23-May-2014 31-Dec-2019 30-Jun-2021 Cumulative Disbursements Restructuring History Level 1 Approved on 06-Apr-2017 1/29/2021 Page 6 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report China Guangdong Agricultural Pollution Control (P127775) Related Project(s) P127815-China Guangdong Agricultural Pollution Control 1/29/2021 Page 7 of 7