Document of
The World Bank
Report No: 58534-CN
RESTRUCTURING PAPER
ON A
PROPOSED PROJECT RESTRUCTURING
OF
HEILONGJIANG DAIRY PROJECT
LOAN NUMBER 4815-CHA
December 14, 2005
TO THE
PEOPLE’S REPUBLIC OF CHINA
ABBREVIATIONS AND ACRONYMS
FMR
HABC
IBRD
ICB
M&E
MR
MTR
NCB
PAD
PPMO
USD
Financial Management Report
Heilongjiang Animal Breeding Center
International Bank for Reconstruction and Development
International Competitive Bidding
Monitoring and Evaluation
Milk Recording
Mid-term Review
National Competitive Bidding
Project Appraisal Document
Provincial Project Management Office
United States Dollars
Regional Vice President:
Country Director:
Sector Manager / Director:
Task Team Leader:
James W. Adams
Klaus Rohland
Ede Jorge Ijjasz-Vasquez
Andrew D. Goodland
2
CHINA
P086629
CONTENTS
Page
A. SUMMARY ........................................................................................................................... 4
B. PROJECT STATUS .............................................................................................................. 4
C. PROPOSED CHANGES ...................................................................................................... 5
D. APPRAISAL SUMMARY.................................................................................................... 7
ANNEX 1: RESULTS FRAMEWORK AND MONITORING ................................................. 9
ANNEX 2: PROPOSED REVISED PROJECT COSTS ......................................................... 12
ANNEX 3: PROPOSED REVISION TO FINANCING PLAN .............................................. 13
ANNEX 4: PROPOSED CANCELLATION OF FUNDS UNDER IBRD LOAN…………….14
ANNEX 5: PROPOSED REALLOCATION OF ITALIAN GRANT FUNDS……………..…15
ANNEX 6: IMPLEMENTATION PLAN……………………………………………………………….16
3
RESTRUCTURING PAPER
A. SUMMARY
The Ministry of Finance and Heilongjiang Province have proposed the following changes to the
project: i) extension of the closing dates of the IBRD Loan (4815-CHA) and Italian Grant
(TF053533) by twelve months, from December 31, 2010 to December 31, 2011; ii) reduction in
the scope of activities and the cancellation of USD30 million from the IBRD Loan; iii)
reallocation of funds under the Italian Grant; and, iv) the revision of indicators and targets in the
monitoring table to reflect these changes. The proposed changes are justified by the numerous
delays, mostly from external factors beyond the control of the project, which have hampered
project implementation, and also changes in the dairy sector which have reduced the demand for
the project activities, notably the reluctance of small-scale farmers to invest in dairy cattle.
B. PROJECT STATUS
The project was approved by the Bank’s Board of Executive Directors on January 24, 2006 and
became effective on June 29, 2006. The project is financed by a USD100m IBRD loan and cofinanced by a USD5.5m Italian Grant under the “Trust Fund for Environmental Protection in
China”.
The implementation has been delayed at various points during implementation due to the
following external events and shocks:
i) Initial start-up of the project was delayed due to an unfavourable market structure and
conditions in the dairy sector which had led to a decline in farm gate prices shortly after the
project was approved and hence a reluctance of farmers to invest in dairy production.
Policy measures introduced in the second half of 2007 corrected these conditions and led to
improved market conditions.
ii) The global and China milk market was hit hard in 2008 from the global economic downturn
which further dented confidence and financial returns in the sector, and also reduced
demand for dairy cattle.
iii) In October 2008, it was revealed that large scale contamination of milk powder with the
industrial compound melamine had occurred in China. Although there was only one
isolated incident of contamination detected in the province, the price of Chinese produced
dairy products fell sharply, again affecting demand.
iv) From December 2009 to July 2010, all movements of livestock within and between
provinces was banned due to fear of the spread of infectious disease, which delayed the
delivery of livestock procured under the project.
The above external shocks demonstrate the vulnerability of the sector and help to explain the
reluctance of smallholder farmers to take on debt to purchase dairy cattle. Also during the course
of the project, and largely in response to the melamine scandal, the structure of milk production
has changed. Government and the large milk processing companies are increasingly concerned
about quality issues in the sector, and this is leading to a tightening of controls throughout the
system. Milk processors are favouring larger units over smallholder production and village
milking stations, and this trend is also been followed in Heilongjiang. This switch to larger scale
units has repercussions for the project design and remaining implementation and has reduced
demand from smallholders.
4
The prospects for the dairy sector in China are positive: growth trends in domestic demand
remain strong despite the short term setbacks described above, averaging close to 7 percent per
year. Forecasts predict this growth continuing for the foreseeable future, with an estimated
growth of over 40 percent in terms of total market value from 2008-2013 (to an anticipated value
of US$14 billion). There are concerns that supply will not be able to keep pace, though this
provides good news for producers, who will likely see prices rise in the absence of further
external shocks. Farmers who have participated in the project are benefitting from increased
incomes.
Procurement problems, especially for importation of dairy cattle also caused delays in project
implementation. At the start of the project, genetic improvement in the province was to be
achieved through three means: i) importing high quality dairy cows; ii) importing high quality
bull semen for insemination; and iii) developing a performance monitoring and a provincial dairy
breed improvement program. The procurement of imported dairy cows proved problematic: i)
identifying suitable suppliers; and ii) logistical issues for selecting and transporting animals.
Furthermore, the assumption that farmers would be willing to pay for imported animals was
wrong. For the remainder of the project, it is now agreed that dairy cattle would be purchased
domestically, which is more cost effective for farmers. The focus of the provincial genetic
improvement is on developing a local system for performance monitoring, with improved
genetics imported via bull semen.
Disbursement under the project has accelerated from a slow start. In January 2009, after 2.5 years
of implementation, the IBRD Loan disbursement stood at USD13.9m (14 percent). By the MidTerm Review in November 2009 it had reached USD31.3m (31 percent). As of November 2010,
it has reached USD45m (45 percent). Disbursement of the Italian Grant stands at USD2.3m (41
percent) as of November 2010.
With regard to the quality of implementation, the main issue raised during the MTR (in
November, 2009) and follow up environment review mission (June 2010) concerned livestock
waste management, which unless adequately addressed in the dairy farms and parks supported
under the project, would impact the viability of the production units.
C. PROPOSED CHANGES
Project Development Objective
This is unchanged and remains as stated in the PAD and Loan Agreement: The objective of the
project is to assist the Borrower to: (i) improve the financial viability of dairy operations in
selected areas of Heilongjiang Province; and (ii) demonstrate innovative technologies to reduce
greenhouse gas emissions and increase carbon sequestration in selected areas of Heilongjiang
Province.
Results/indicators.
Some of the indicators for of project targets are proposed to change to reflect the current status of
the project. See below and Annex 1 for details.
Components
Component 1: Dairy Production Component. Under this component, the project supports
different types of dairy production units: i) household farms, with associated milking stations; ii)
dairy parks; and, iii) demonstration farms. The following changes are proposed:

Works: the original design included allocation of funds to support works associated with the
construction of milking sheds for household based production units and the construction of
5
the dairy park facilities and required access roads for new dairy parks. This is no longer
required: all works have been completed with counterpart funding.

Scope: The number of units that the project would support is proposed to be reduced as
follows:
i)
household farms from 5,500 to 4,000; due to lack of demand from farmers;
ii)
dairy parks from 50 new and 20 rehabilitated, to 40 new and 1 rehabilitated. The
reduction of new parks is due to lack of demand; the reduction in rehabilitated is due
to there being no suitable additional dairy parks.
iii)
demonstration farms from 7 to 5, due to lack of demand.
iv)
milking stations from 55 to 41, also due to lack of demand.
Component 2: Breed Improvement. Under this component the following changes are proposed:

Objective: The component objective, as stated in the PAD is that “A sustainable dairy herd
improvement program established and producing proven bulls through contract mating
programs”. While the establishing of a dairy herd improvement remains the core objective of
the component, there is insufficient time for the system to produce proven bulls. This
requires: i) that the milk recording system is fully functional; ii) that the system has been
used to identify a nucleus of high productivity bull mothers; iii) that bulls born to these bull
mothers have reached maturity and have been mated; iv) that the milking cows born have
reached maturity; and, v) performance of the cows has been assessed (under the milk
recording system) to identify proven bulls. This was an unrealistic target set at during
preparation given these biological constraints, which would require a minimum of five years
to achieve. With some initial delays in the establishment of the milk recording system, any
hope of reaching the objective to produce proven bulls was lost, even with a twelve month
extension. The system development is, however, progressing under the component. The
proposed revised objective therefore reads: “A sustainable dairy herd improvement program
established, capable of producing proven bulls through contract mating programs”.

PDO indicator #2: This currently reads as, “A sustainable system of bull selection and
progeny testing is functioning”, in line with the current objective. If the objective is revised as
above, this would be modified to “A sustainable system of milk recording is functioning, with
plan for bull selection and progeny testing in place”.

Intermediate outcome indicator 2: The current indicator reads as, “Level of semen
production and Inter-bull ranking of HABC bulls”. As noted above, progeny tested bulls
would not be produced until after the project closes, there it is recommended to drop this
indicator.

Scope: the following changes in scope are proposed:
i)
reduce the amount of imported semen from 840,000 doses to 340,000 doses, due to
import quota restrictions.
ii)
reduce the target for number of cows under milk recording from 150,000 to 120,000,
reflecting the initial delays in implementing this component and the limited capacity
of the Animal Breeding Centre.
Component 3: Climate Change Mitigation. Note that this component is fully financed by the
Italian Grant (TF053533), which it is proposed would also be extended by 12 months. Under this
component the following changes are proposed:
i)
The area of pasture to be rehabilitated would be increased from 16,500ha to
20,000ha, due to increased demand and availability of suitable degraded pastureland;
6
ii)
iii)
iv)
The number of manure treatment units established will be reduced from 20 to 16, due
to the reduction in the number of demonstration farms and dairy parks supported
under the project;
The number of crop treatment facilities established would increase from 5 to 9, due to
increased demand for good quality silage; and,
The number of research topics funded would increase from 6 to 16, due to the
success of this sub-component in identifying innovative technologies for application
by farmers.
Financing
 Project Costs: Project costing is proposed to be revised, in line with the changes in scope
described above. The proposed changes are detailed in Annex 2.

Financing Plan: The financing plan is proposed to be revised, reflecting the change and
reduction in scope described above. The proposed changes are detailed in Annex 3.

Reallocations: For the IBRD Loan, no reallocation is proposed, though USD30 million
would be cancelled (see below). The proposed change in expenditure categories are
detailed in Annex 4. There is proposed reallocation under the Italian Grant Agreement to
reflect the modifications to the scope of Component 3 above. The proposed changes are
detailed in Annex 5.

Cancellations: It is proposed to cancel USD30 million from the IBRD Loan amount. As
noted in the Section B above, there has been a fall in demand from farmers and therefore
it is prudent to cancel outstanding funds. Note that the request to cancel these funds
would be effective from the date that the letter request was received from Government,
which was December 3, 2010.
Procurement
As noted above, procurement issues have been one of the sources of delay under the project. This
was largely due to difficulties faced in implementing ICB and NCB procedures, and the
preference for farmers to be more engaged in procurement of their cattle (for which they purchase
with loans under the projects). A proposed revision to the Procurement Plan received in July 2010
was considered by the Bank and a procurement team visited the Province in August 2010 to
review current practice. On September 30, 2010, the Bank issued a no objection to the revised
procurement plan, under which the remaining cattle to be procurement under the project would
follow the Community Participation in Procurement process agreed between the PPMO and Bank
team.
Closing date
It is proposed to change the closing dates of both the IBRD Loan and Italian Grant Agreement
from December 31, 2010 to December 31, 2011 due to the delays in implementation
Implementation schedule
Based on the restructuring proposal, a revised implementation plan has been prepared by the
PPMO. It includes, for each contract, the latest cost estimates, start and finish dates and financing
requirements. This is included as Annex 6. With this plan, the outstanding USD25 million (after
cancellation) can be disbursed during the extension period. Of this, approximately USD10 million
is already contracted and delivery is expected by March 2011. The remaining USD15 million
would be used to procure cattle. With the change in procurement method described in the
Procurement section above, this would be done with Community Participation, which is a
relatively fast procurement method.
7
D. APPRAISAL SUMMARY
There are no expected changes in the nature of impact of the project, other than the reduced scope
as described above.
Risks:
The PDO is to improve the financial viability of dairy operations in Heilongjiang. During the
project’s original appraisal, it was concluded that the market risk to achieving this was low. This
needs to be reassessed in light of the external shocks experienced during the lifetime of the
project described above. None of these could have been foreseen when the project was designed,
and mitigation measures would have been difficult to put in place but market risk should have
been further highlighted. It is possible that further shocks may occur during the extension period;
at this stage the most damaging would be further restrictions on the movement of livestock in the
country, as this would prevent the delivery of cattle procurement contracts. The approval of the
revised Procurement Plan (see above) increases flexibility in selection of sources for livestock.
Other market shocks which in the past have reduced demand and/or viability of dairy operations
are possible, though the longer term market trend is for increasing demand.
8
ANNEX 1:
Results Framework and Monitoring
CHINA: HEILONGJIANG DAIRY PROJECT
Project Development Objective (PDO): The objective
of the Project is to assist the Borrower to: (i) improve the financial viability of dairy operations in selected areas of
Heilongjiang Province; and (ii) demonstrate innovative technologies to reduce greenhouse gas emissions and increase carbon sequestration in selected areas of
Heilongjiang Province.
PDO Level Results
Indicators*
Core
Revised Project Development Objective: no revision
D=Dropped
C=Continue
N= New
R=Revised
Cumulative Target Values**
Unit of
Measure
Baseline
Frequency
YR 1
YR 2
YR 3
YR4
YR5
Indicator One: Targeted dairy
farmers participating in
smallholder and Dairy Parkbased milk production sell
more high quality milk.
C
Target set
Litres
13.0
15.5
[Note that no
target was set
during
preparation]
Semiannual
progress
reports
Indicator Two: A sustainable
system of milk recording is
functioning, with plan for bull
selection and progeny
test in place
Indicator Three: Targeted
dairy demonstration farms and
parks are equipped with
functioning manure treatment
units and selected pastures.
R
n/a
No
system in
place
MR system in
place and
functional
End of
project
Indicator C;
target
revised
# of
farms
0
41 farms
40 parks
Semiannual
progress
reports
3 farms
6 parks
7 farms
14 parks
7 farms
20 parks
7 farms
20 parks
Data Source/
Methodology
Regular
project M&E
Responsibility
for Data
Collection
PPMO
PPMO –HABC
Regular
project M&E
PPMO
INTERMEDIATE RESULTS
Intermediate Result (Component One): From PAD:
About 10,000 targeted smallholders are efficiently producing greater quantities of quality of milk on their farms or in
dairy parks.
Revised Intermediate Result (Component One): About
parks.
7,000 targeted smallholders are efficiently producing greater quantities of quality of milk on their farms or in dairy
Intermediate Result indicator
One: Targeted number of
smallholder dairy farms,
dairy parks and
demonstration farms
established.
C
Targets
revised
# of
farms /
parks
0
Smallholde
rs:
1,650 farms
Dairy
parks:
15 new, 1
existing
Demonstrat
ion
farms: 3
Intermediate Result indicator
Two: Anticipated increase in
dairy productivity at
household and parks dairy
levels achieved.
Intermediate Result indicator
Three: Number of dairy farmer
associations established.
C
Liter /
day
0
13
C
# of
associatio
ns
0
C
# of
trained
0
Intermediate Result indicator
Four: Number of technicians
and farmer trained.
Intermediate Result indicator
Five: Credit monitoring and
collection of loans
350
technicians
3825
farmers
As defined
in
operations
manual
C
Smallhold
ers:
2,000
farms
Dairy
parks:
35 new, 1
existing
Demonstr
ation
farms: 5
13
400
technician
s
5000
farmers
As
defined in
operations
manual
Smallhold
ers:
2,500
farms
Dairy
parks:
40 new, 1
existing
Demonstr
ation
farms: 5
15
Smallhold
ers:
3,500
farms
Dairy
parks:
40 new, 1
existing
Demonstr
ation
farms: 5
15.2
Smallholders:
4,000 farms
Dairy parks:
40 new, 1
existing
Demonstration
farms: 5
Semiannual
progress
reports
Regular
project M&E
PPMO /
CPMOs
15.5
Semiannual
progress
reports
Regular
project M&E
PPMO /
CPMOs
30
70
82
Regular
project M&E
PPMO /
CPMOs
500
technician
s
6000
farmers
As
defined in
operations
manual
600
technician
s
7000
farmers
As
defined in
operations
manual
700 technicians
8000 farmers
Semiannual
progress
reports
Semiannual
progress
reports
Regular
project M&E
PPMO /
CPMOs
Semiannual
progress
reports
Regular
project M&E
PPMO / Fin
Bureau
As defined in
operations
manual
Intermediate Result (Component Two): A sustainable dairy herd improvement program established and producing proven bulls through contract mating programs.
Revised Intermediate Result (Component Two): A sustainable dairy herd improvement program established, capable of producing proven bulls through contract mating programs.
Intermediate Result indicator
One: Number of cows under
milk recording (MR).
Intermediate Result indicator
Two: Level of semen
production and Inter-bull
ranking of HABC bulls
C
# cows
0
10,000
40,000
80,000
120,000
120,000
Semiannual
progress
reports
Regular
project M&E
D
Intermediate Result (Component Three): From PAD: Environmentally and commercially sustainable systems for pasture development and dairy manure treatment are established.
10
PPMO
Revised Intermediate Result (Component Three): not revised
Intermediate Result indicator
One: Area of pastures
renovated
Intermediate Result indicator
Two: Number of manure/waste
treatment units established
Intermediate Result indicator
Three: Number of crop
treatment for feed (silage)
facilities established.
Intermediate Result indicator
Four: Number of research
topics funded
C
hectares
0
3,000
6,500
11,000
16,500
20,000
C
# units
0
6
14
16
16
16
C
# units
0
1
3
5
7
9
C
# topics
0
2
6
10
14
16
Semiannual
progress
reports
Semiannual
progress
reports
Semiannual
progress
reports
Regular
project M&E
PPMO
Regular
project M&E
PPMO
Regular
project M&E
PPMO
Semiannual
progress
reports
Regular
project M&E
PPMO
Intermediate Result (Component Three): from PAD: PPMO and PMOs implementing project activities, monitoring outputs and impact, and providing timely progress and financial reports, annual plans and budgets.
Revised Intermediate Result (Component Three): not revised
C
0
1 semiannual
progress
reports
2 FMRs
C
0
1 baseline
survey
Intermediate Result indicator
One: Project progress, financial
and procurement reports are
initiated and submitted in a
timely manner;
Intermediate Result indicator
Two: Project impact/outcome
monitoring indicators
regularly updated.
Annual
work
plan
2 semiannual
progress
reports
2 FMRs
Annual
work
plan
2 semiannual
progress
reports
2 FMRs
1 midterm
review
report by
June 30,
2008
1st impact
survey
Annual
work
plan
2 semiannual
progress
reports
2 FMRs
1 semi-annual
progress reports
2 FMRs
2nd impact
survey
1 completion
report
*Please indicate whether the indicator is a Core Sector Indicator (see further http://coreindicators)
**Target values should be entered for the years data will be available, not necessarily annual
11
Annual
work plans
Semiannual
progress &
Fin.
Managmt.
Reports
Regular project
M&E
PPMO
Baseline
survey
Socioeconomic
surveys
PPMO
Annex 2: Proposed Revised Project Costs
Component
Dairy Development
Household Dairy Farms
Milking and Collection Stations
Dairy Parks
Demonstration Farms
Training and Technology Transfer
Dairy Farmer Associations
Breed Improvement
Climate Change Mitigation
Project Management, Monitoring and
Evaluation
Total Baseline Cost
Physical Contingencies
Price Contingencies
Total Project Costs
Front-end Fee
Total Financing Required
Local
US$ Million
97.27
56.6
5.1
23.77
10
1.5
0.3
2.5
5.6
Revised
Foreign
US$ Million
28.93
11.3
0.8
6.03
10.2
0.6
0
4
4.9
Total
US$ Million
126.2
67.9
5.9
29.8
20.2
2.1
0.3
6.5
10.5
1.1
0.8
0.3
1.1
165.3
3.8
9.6
178.7
0.25
178.95
106.17
0.8
1.3
38.13
1
1.3
144.3
1.8
2.6
0.0
108.27
0.25
40.68
0.25
148.95
Local
US$ Million
83.5
47.7
5.6
20.3
8.1
1.5
0.3
2.5
4.6
Current
Foreign
US$ Million
64.7
41.2
1.1
8.6
13.2
0.6
0.0
4.0
4.9
Total
US$ Million
148.2
88.9
6.7
28.9
21.3
2.1
0.3
6.5
9.5
0.8
0.3
91.4
2.8
5.3
99.5
0.0
99.5
73.9
1.0
4.3
79.2
0.25
79.45
Annex 3: Proposed revision to Financing Plan
Source
Borrower
IBRD
Italian Grant
Sub-borrowers
Local farmers organizations
Total
Local
22.20
35.80
2.20
22.30
17.00
99.50
Current
Foreign
2.95
64.20
3.30
5.50
3.50
79.45
13
Total
25.15
100.00
5.50
27.80
20.50
178.95
Local
22.20
44.57
2.20
22.30
17.00
108.27
Proposed
Foreign
2.95
25.43
3.30
5.50
3.50
40.68
Total
25.15
70.00
5.50
27.80
20.50
148.95
Annex 4: Proposed Allocation of Cancelled funds under IBRD Loan
Category of Expenditure
Current
Revised
(1) Civil
No change
works
(Except for
Parts A.1 and
A.4 of the
Project)
(2) Goods
No change
(Except for
livestock)
Allocation
Current
7,400,000
Revised
0
8,950,000
8,600,000
(3) Livestock
(4)
Consultant
services
(5) Training
and study
tours overseas
(6) Fee
No change
No change
82,000,000
900,000
60,550,000
100,000
100% of
No change
foreign
expenditures,
100% of
local
expenditures
(exfactory
cost) and 75%
of
local
expenditures
for
other items
procured
locally.
100%
No change
100%
No change
No change
500,000
500,000
100%
No change
No change
250,000
250,000
Amount due
under Section
2.04 of this
Agreement
No change
100,000,000
70,000,000
TOTAL
% of Financing
Current
Revise
25%
No change
Annex 5: Proposed Reallocation of Italian Grant Funds
Category of Expenditure
Current
Revised
(1) Competitive No change
Research Subgrants under Part
C.4 of the
Project
(2) Goods under No change
Part C of the
Project
Allocation
Current
600,000
Revised
670,000
2,200,000
1,940,000
(3) Works under
Part C of the
Project
(4) Consultants’
services under
Part C of the
Project
(5) Training
under Part C of
the Project
Total
No change
2,300,000
2,380,000
100% of foreign
No change
expenditures, 100% of
local expenditures (exfactory cost) and 75%
of local expenditures
for other items
procured locally
50%
No change
No change
350,000
380,000
100%
No change
No change
50,000
130,000
100%
No change
5,500,000
5,500,000
15
% of Financing
Current
55% of amounts under
Competitive Research
Sub-projects
Revise
No change
Annex 6
Implementation Plan of the Heilongjiang Dairy Project: IBRD Loan (2010.12-2011.12)
Currency: USD
Series No.
1
Contract Type
Dairy cow
GT-IM-209004
Unit Price
Amount
Cost Estimate
Procurement
Contract
Amount
Down
Payment
Payment on
Shipment
Payment on Final Acceptance
Note
2955.9
410
1211919.31
ICB
Contract signed; withdrawal application and disbursement is expected to be
completed by January 2011.
Ongoing
2
Dairy cow
GT-IM-209006
2943.96
1587
4672064.52
ICB
Contract signed; withdrawal application and disbursement is expected to be
completed by January 2011.
Ongoing
3
Dairy cow
HDP-ICB-2009-115
1870.72
2530
4732921.6
ICB
Contract signed; withdrawal application and disbursement is expected to be
completed by March 2011
Ongoing
4
Purchase of
dairy cow
2272.73
1425
3238636.4
CP
Due to fluctuation of dairy cow price in domestic market, discrepancy between
estimated cost and the actual contract value may exist. The expected contract
date is around December 15, 2010 and delivery in May, 2011.
planning
5
Purchase of
dairy cow
2272.73
2700
6136363.6
CP
Due to fluctuation of dairy cow price in domestic market, discrepancy between
estimated cost and the actual contract value may exist. The expected contract
date is around December 15, 2010 and delivery in May, 2011.
planning
6
Purchase of
dairy cow
2272.73
2265
5147727.3
CP
Due to fluctuation of dairy cow price in domestic market, discrepancy between
estimated cost and the actual contract value may exist. The expected contract
date is around January 15, 2011 and delivery in July, 2011.
planning
7
Purchase of
dairy cow
2272.73
540
1227272.7
CP
Due to fluctuation of dairy cow price in domestic market, discrepancy between
estimated cost and the actual contract value may exist. The expected contract
date is around January 15, 2011 and delivery in July, 2011.
planning
Total
26,366,905.
16
Note: 1. Dairy cow community procurement (PC) of 12224 cows in total will be conducted in four independent batches. Liquidity permitting, disbursement for the four batches can be done at the
same time.
2. PC payment shall be handled by relevant PMOs and Finance Bureaus following the code of the domestic dairy cow sector and with flexibility in the local context. However, the procurement
process and documentation shall be under strict scrutiny of the PPMO.
3. PC payment will be allocated from the special account. Extension of account closing date is needed to complete all disbursement given the size of procurement and limit of the special account.
17
Implementation Plan of the Heilongjiang Dairy Project: Italian Trust Fund (2010.7 - 2011.12)
Series No.
1
2
Contract Type
Pasture Improvement
100,000 mu(180,000mu
completed)
Waste Management
Facilities Package
Unit Price
Amount
160822.2
-
10.0
-
Cost
Estimate
Procurement
1608222.5
SOE
1600000.0
ICB
(Currency: USD)
Payment on
Final
Acceptance
90,000 mu are completed; 10,000 mu are to be completed next year;
disbursement for 180,000 mu out of the 280,000 mu is in process and will
be done by May, 2011.
Tender sold on October 15, 2010. Contract expected to be signed in
December. Completion and disbursement by April, 2011.
Contract
Amount
Down
Payment
1st
Installment
2nd
Installment
Note
In process
In process
3
10 Competitive Studies
36275.7
10.0
362757.0
Competitive
Studies
Topic selection done. Review and implementation will start soon.
Disbursement to be completed in December, 2011.
4
9 Straw Processing Projects
40000.0
9.0
360000.0
Competitive
Studies
-
-
49000.0
CQS
-
-
82000.0
CQS
2 pilots were completed, and 7 contracts were signed. Disbursement to be
done in October, 2011.
20%，2010.8. 30%，2010.1 30%，2011.3 20%，2012
49000.0
13
2.30
.30
.3.30
20%，2010.8. 40%，2010.9 20%，2011.5 20%，2011
82000.0
30
.30
.30
.12.30
-
-
87000.0
CQS
87000.0
20%，
2010.8.13
30%，
2010.12.30
30%，
2011.3.30
20%，
2011.11.30
In process
77000.0
CQS
77000.0
20%，
2010.8.5
20%，
2010.10.20
40%，
2010.12.31
20%，
2011.12.30
In process
89000.0
20%，
2010.8.5
20%，
2010.10.20
40%，
2010.12.31
20%，
2011.12.30
In process
Training program is being developed for WB review soon. Disbursement
to be completed from February – April, 2011.
5 groups
5
6
7
8
9
10
17-month TA by Pasture
Specialists
15-month TA by Waste
Management Specialists
15-month TA by
Environmental Monitoring
and Assessment Specialists
25-month TA by Straw
Processing Specialists
25-month, Grant Financial
Management Specialists and
Environmental Specialists
Domestic Training
300 person*day
Total
-
-
89000.0
CQS
120.9
300.0
36275.7
SOE
4351255.1
18
In
preparation
In process
In process
In process
Note: 1. Waste management facilities include 4 large dung blocking machines, 4 small dung blocking machines, 16 tractors, 16 loaders, 16 solid-liquid separators, and
16 sewage pumps.
2. Extension of account closing date is needed given that project activities and disbursement totaling US$4.35 million need to be completed within 2011.
19