Document of The World Bank IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD TF-57202) ON A LOAN IN THE AMOUNT OF 20.0 MILLION US$ EQUIVALENT)

Transcription

1 Public Disclosure Authorized Document of The World Bank Report No: ICR Public Disclosure Authorized IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD TF-57202) ON A LOAN IN THE AMOUNT OF 20.0 MILLION US$ EQUIVALENT) Public Disclosure Authorized TO THE PEOPLE S REPUBLIC OF CHINA FOR AN ECONOMIC REFORM IMPLEMENTATION PROJECT February 18, 2016 Public Disclosure Authorized Macroeconomics and Fiscal Management Global Practice China Country Department East Asia and Pacific Region

2 PEOPLE S REPUBLIC OF CHINA ECONOMIC REFORM IMPLEMENTATION PROJECT CURRENCY EQUIVALENTS (Exchange Rate Effective September 22, 2015) Currency Unit = CNY (YUAN) CNY 1 = US$ US$ 1 = CNY FISCAL YEAR July 1 June 30 ABBREVIATIONS AND ACRONYMS AAA AIDS CY CAS CDD CPC CPS DFID DPL FMS GBP GDP GoC GPA IBRD ICR IDA IEG IFI ISDS ISR IAs LA Analytic and Advisory Activity Acquired Immune Deficiency Syndrome Calendar Year Country Assistance Strategy Community Driven Development Communist Party of China Country Partnership Strategy Department for International Development of the Government of United Kingdom Development Policy Lending Financial Management Specialist Great Britain Pound Gross Domestic Product Government of China Government Procurement Agreement International Bank for Reconstruction and Development Implementation Completion Report International Development Association Independent Evaluation Group International Financial Institution Integrated Safeguard Data Sheet Implementation Status Report Implementation Agencies Loan Agreement i

3 M&E Monitoring and Evaluation MoF Ministry of Finance MoLR Ministry of Land and Natural Resources MOLSS Ministry of Labor and Social Security NDRC National Development and Reform Commission NGO Non-governmental Organization NPC National People s Congress OECD Organization for Economic Cooperation and Development OED Operations Evaluation Department PAD Project Appraisal Document PBOC People s Bank of China PCN Project Concept Note PDO Project Development Objective PMO Project Management Office PSU Public Service Unit RAS Reimbursable Advisory Service RMB Renminbi SAFE State Administration of Foreign Exchange SIA Subproject Implementation Agency SMO Subproject Management Office SOE Statement of Expenses SSS Single Source Selection TA Technical Assistance TAL Technical Assistance Loan TCC Technical Cooperation Credit TCC5 Fifth Technical Cooperation Credit TOR Terms of Reference UK United Kingdom VAT Value Added Tax Regional Vice President: Axel van Trotsenburg Country Director: Bert Hofman Sector Manager: Mathew Verghis Project Team Leader: Chorching Goh, co-ttl: Jianqing Chen ICR Team Leader: Chorching Goh, co-ttl: Jianqing Chen ii

4 PEOPLE S REPUBLIC OF CHINA ECONOMIC REFORM IMPLEMENTATION PROJECT CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design Key Factors Affecting Implementation and Outcomes Assessment of Outcomes Assessment of Risk to Development Outcome Assessment of Bank and Borrower Performance Lessons Learned Comments on Issues Raised by Borrower/Implementing Agencies/Partners Annex 1. Project Costs and Financing Annex 2. Outputs by Component Annex 3. Economic and Financial Analysis Annex 4. Bank Lending and Implementation Support/Supervision Processes Annex 5. Beneficiary Survey Results Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders Annex 9. List of Supporting Documents Annex 10: Policy Measures Resulting from TCC5 Subprojects Annex 11: TCC5 Project Timeline MAP iii

5 Tables Table 1: Project Expenditures by Subproject Category... 5 Table 2: Number of Subprojects and Cost by TCC5 Component Table 3: Number of Subprojects Aiming at and Achieving Policy Adoption Table 4: Frequency of Subprojects Meeting Own Objectives by Component Boxes Box 1: Capacity Building at National and Subnational Levels Box 2: Capacity Building at National and Subnational Levels Box 3: Soundness of Reform and Development Strategies and Policies iv

6 A. Basic Information Country: China Project Name: China Economic Reform Implementation Project Project ID: P L/C/TF Number(s): IBRD-48200,TF ICR Date: 02/18/2016 ICR Type: Core ICR Lending Instrument: TAL Borrower: Original Total Commitment: Revised Amount: Environmental Category: C PEOPLE'S REPUBLIC OF CHINA USD 20.00M Disbursed Amount: USD 17.20M USD17.20M Implementing Agencies: Ministry of Finance Cofinanciers and Other External Partners: DFID B. Key Dates Process Date Process Original Date Revised / Actual Date(s) Concept Review: 09/08/2004 Effectiveness: 10/12/ /12/2006 Appraisal: 01/13/2006 Restructuring(s): 12/15/2010 7/12/2013 Approval: 04/11/2006 Mid-term Review: 10/31/2008 Closing: 12/31/ /30/2015 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Risk to Development Outcome: Bank Performance: Borrower Performance: Satisfactory Low Moderately Satisfactory Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Moderately Satisfactory Government: Satisfactory Quality of Supervision: Moderately Satisfactory Implementing Agency/Agencies: Satisfactory Overall Bank Overall Borrower Moderately Satisfactory Performance: Performance: Satisfactory v

7 C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Performance (if any) Potential Problem Project at any time (Yes/No): Problem Project at any time (Yes/No): DO rating before Closing/Inactive status: No No Moderately Satisfactory Quality at Entry (QEA): Quality of Supervision (QSA): None None Rating D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Banking 5 10 Central government administration Sub-national government administration Theme Code (as % of total Bank financing) Analysis of economic growth Biodiversity Improving labor markets Indigenous peoples 16 6 Public expenditure, financial management and procurement E. Bank Staff Positions At ICR At Approval Regional Vice President: Axel van Trotsenburg Jeffrey S. Gutman Country Director: Bert Hofman David R. Dollar Practice Manager/Sector Manager: Project Team Leader: ICR Team Leader: Mathew A. Verghis Homi Kharas Chorching Goh, Jianqing Chen-co- Chunlin Zhang TTL Chorching Goh, Jianqing Chen-co- TTL ICR Primary Authors: Richard Carroll, Yan Wang NA NA vi

8 F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The project development objective in the Loan Agreement was to assist the Borrower in implementing its economic reform and development agenda, by strengthening its institutional capacity at the national and sub-national levels to carry out such reform agenda. The project would result in the adoption and use of sound reform and development strategies, policies and implementation plans through a series of technical assistance subprojects tailored to address specific challenges through institutional capacity building. Note: Section F. incorporates additional evidence for the original PDO indicators gathered at the ICR stage. Original indicator label is repeated and new evidence is presented in the comments cell for indicators and 6. Revised Project Development Objectives (as approved by original approving authority) No revisions. (a) PDO Indicator(s) Indicator Baseline Value Original Target Values (from approval documents) Formally Revised Target Values Actual Value Achieved at Completion or Target Years Evidence of high adoption and use of sound reform and development strategies, Indicator 1 : policies developed under the project - no. of subprojects (ISR evidence) Value (quantitative or 0 NA Qualitative) Date achieved October 26, 2006 March 31, 2015 June 30, 2015 Comments (incl. % Target 75% achieved. The final ISR used as a target the total number of subprojects (59), however not all subprojects specifically aimed at this PDO achievement) indicator. Evidence of high adoption and use of sound reform and development strategies, Indicator 2 : policies developed under the project (ICR evidence for indicator above) Value (quantitative or NA NA NA NA Qualitative) Date achieved 83% of the 46 subprojects aimed at policy input led directly to an implemented Comments policy measure by June 30, This evidence is based on further analysis at (incl. % ICR stage. This high (83%) adoption rate also indicates effective implementation achievement) of recommendations of subprojects. vii

9 Evidence of high level of effectiveness in the implementation of reform and Indicator 3 : development strategies and policies growing out of the project - no. of subprojects (ISR evidence) Value quantitative or 0 NA Qualitative) Date achieved October 26, 2006 March 31, 2015 June 30, 2015 Comments (incl. % Target 32% achieved. The final ISR used as a target the total number of subprojects (59), however not all subprojects specifically aimed at this PDO achievement) indicator. Evidence of high level of effectiveness in the implementation of reform and Indicator 4 : development strategies and policies growing out of the project (ICR evidence for indicator above) Value quantitative or NA NA NA NA Qualitative) Date achieved Completion and trial implementation (2010) of accrual accounting system for Comments (incl. % financial reporting (subproject A14) replacing cash-based system (MoF document No. 218 <2013>). In 2014 State Council endorsed MoF s reform program on achievement) accrual accounting-based financial reporting. Evidence added based on further analysis at ICR stage. Evidence of improved soundness of reform and development strategies emerging Indicator 5 : from the project - no. of subprojects (ISR evidence) Value (quantitative or 0 NA Qualitative) Date achieved October 26, 2006 March 31, 2015 June 30, 2015 Comments (incl. % Target 46% achieved. The final ISR used as a target the total number of subprojects (59), however not all subprojects specifically aimed at this PDO achievement) indicator. Evidence of improved soundness of reform and development strategies emerging Indicator 6 : from the project (ICR evidence for indicator above) Value (quantitative or NA NA NA NA Qualitative) Date achieved Study (A08) contributed to the creation of an MIS for Sovereign Debt Monitoring Comments and Tracking which was put into operation by all provincial finance departments. (incl. % This evidence is based on further analysis at the ICR stage and leads to improved achievement) soundness of reforms by improving debt/borrowing statistical tools viii

10 (b) Intermediate Outcome Indicator(s) Indicator Baseline Value Original Target Values (from approval documents) Formally Revised Target Values Actual Value Achieved at Completion or Target Years Indicator 1 : More policy focus on MDGs in project regions and departments - no. of subprojects Value (quantitative or Qualitative) 0 NA Date achieved October 26, 2006 June 30, 2015 March 31, 2015 Comments (incl. % achievement) Indicator 2 : Target substantially (73%) achieved. Supervision added the following specifics to the indicator: 1) assistance to vulnerable groups, 2) poverty reduction, 3) fight against AIDS, 4) environmental sustainability (Number, Custom). DFID funding focused on these areas. Higher quality of reform process of project regions and departments in areas covered by the project- Reforming the civil service and public finance (Number of subprojects, Custom) Value quantitative or Qualitative) 0 NA Date achieved October 26, 2006 June 30, 2015 March 31, 2015 Comments (incl. % achievement) Indicator 3 : Target substantially (75%) achieved. The indicator measures the number of subprojects fulfilling their objectives. The other 2 subprojects partially fulfilled their objectives. During supervision the indicator, higher quality of reform process of project regions and departments, was assessed by component, becoming 5 indicators rather than one. Higher quality of reform process of project regions and departments in areas covered by the project Improving service delivery and social protection (Number of subprojects, Custom) Value quantitative or Qualitative) 0 NA Date achieved October 26, 2006 June 30, 2015 December 1, 2015 Comments (incl. % achievement) Target substantially (81%) achieved. 2 subprojects partially fulfilled objectives and 1 did not fulfill its objectives. Higher quality of reform process of project regions and departments in areas Indicator 4 : covered by the project Building Public and Market Institutions (Number of subprojects, Custom) Value quantitative or Qualitative) 0 NA 12 8 Date achieved October 26, 2006 June 30, 2015 March 31, 2015 Comments (incl. % achievement) Target substantially (67%) achieved. 3 subprojects partially achieved their objectives while 1 failed to achieve its objectives. ix

11 Higher quality of reform process of project regions and departments in areas Indicator 5 : covered by the project Managing land and natural resources (Number of subprojects, Custom) Value quantitative or Qualitative) 0 NA 11 9 Date achieved October 26, 2006 June 30, 2015 December 1, 2015 Comments (incl. % achievement) Target substantially (82%) achieved. The other 2 subprojects failed to achieve their objectives. Higher quality of reform process of project regions and departments in areas Indicator 6 : covered by the project Improving regional and sectoral development strategy (Number of subprojects, Custom) Value quantitative or Qualitative) 0 NA 3 2 Date achieved October 26, 2006 June 30, 2015 March 31, 2015 Comments (incl. % achievement) Target substantially (67%) achieved. The other subproject failed to achieve its objective. Successful completion of training and enhancement of institutions for thematic Indicator 7 : component Strengthening institutional capacity : 1) training/study tours completed; 2) institutions enhanced (Number of subprojects, Custom) (ISR evidence) Value quantitative or Qualitative) 0 NA 3 3 Date achieved October 26, 2006 June 30, 2015 December 1, 2015 Comments (incl. % achievement) Indicator 8 : Value (quantitative or Qualitative) Date achieved Comments (incl. % achievement) Target (100%) achieved. The number of subprojects meeting this indicator was updated from 2 to 3 during the ICR stage. Successful completion of training and enhancement of institutions for thematic component Strengthening institutional capacity : 1) training/study tours completed; 2) institutions enhanced (Number of subprojects, Custom) (ICR evidence for indicator above) NA NA NA NA Subproject A25 trained 50 scientific/tech staff overseas, plus 500 staff domestically (central/provincial/city levels) in policy and planning for talent development-china Exec. Leadership Academy Shanghai. A large number of textbooks were also produced for follow-up training activities. Total project wide capacity building: 622 civil servants received training overseas; 9,167 people were trained domestically, mainly through workshops. x

12 G. Ratings of Project Performance in ISRs No. Date ISR Archived DO IP Actual Disbursements (USD millions) 1 06/16/2006 Satisfactory Satisfactory /28/2007 Satisfactory Satisfactory /13/2007 Satisfactory Satisfactory /23/2009 Satisfactory Satisfactory /03/2010 Satisfactory Satisfactory /11/2010 Satisfactory Satisfactory /06/2011 Satisfactory Satisfactory /10/2011 Satisfactory Satisfactory /21/2012 Satisfactory Satisfactory /10/2013 Satisfactory Satisfactory /25/2013 Satisfactory Satisfactory /27/2013 Satisfactory Satisfactory /25/2014 Satisfactory Satisfactory /27/2015 Satisfactory Satisfactory /25/2015 Moderately Satisfactory Satisfactory Note that the supervision mission for the mid-term review (October 2008) did not file an ISR. H. Restructuring (if any) 1. Restructuring Level 2 December 15, 2010, for the purpose of extending the project closing date from December 31, 2011 to December 31, 2013, and allowing additional time for subproject completion 2. Restructuring Level 2, July 12, 2013, for the purpose of extending the project closing date from December 31, 2013 to June 30, 2015 and allowing additional time for subproject completion. xi

13 I. Disbursement Profile xii

14 1. Project Context, Development Objectives and Design 1.1 Context at Appraisal 1. China achieved rapid economic growth and poverty reduction leading up to the Fifth Technical Cooperation Credit (TCC5) 1 appraisal, driven by economic reform and increased openness. According to the Bank s international poverty line of $1.25 a day, 600 million people had been lifted out of poverty between 1980 and Past achievement notwithstanding, Chinese leaders had realized that China s pattern of economic growth was not sustainable by the time of project appraisal in One of the major challenges was the regional disparity and income inequality, which had been rising. Meanwhile, China s growth pattern put increasing strains on the environment. The growth pattern relied heavily on the manufacturing industry and external demand, and would require ever increasing capital accumulation. A World Bank study found that the health and the non-health cost of pollution was about 5.8 percent of GDP (World Bank 2007). Thus, China s development agenda faced complex challenges and greater uncertainty. 2. The Government of China (GoC) incorporated these challenges into an agenda of reform and development in the Decision on Issues for Perfecting the Socialist Market Economic System, adopted by the Central Committee of the Communist Party of China (CPC) in October 11-14, The Decision was a people-centered strategy aiming to achieve a harmonious society that balanced economic growth with distributional and ecological concerns. Reform strategies were heavily concentrated on institutional bottlenecks as shown in the five pillars: (1) to restructure the basic economic institutions on land and property rights; (2) to deepen rural institutional reforms, and reducing regional development disparity; (3) to conduct markets and price reforms for land, labor, capital, intellectual property and other elements of production; (4) to strengthen macroeconomic management, administrative and economic-law systems, including reforms of taxation, public finance, investment and financial systems, and improving governance; and (5) to enhance social institutions related to employment, income distribution, and social security systems and deepen institutional reforms to control for corruption and promote economic and social stability and sustainability. 3. Significant progress was achieved in these reforms, but there were bottlenecks in each area as well. The 11 th Five Year Plan ( ), adopted by the National People s Congress in March 2006, outlined the concrete action plans for implementing the above reforms. These reforms required breaking old patterns of growth, changing rules of doing business and adopting new laws and regulations with far-reaching consequences on fiscal balances and macro-financial stability. The inadequate technical expertise and institutional capacity at several levels of government prompted the government s request for technical assistance. Rationale for Bank involvement 4. The World Bank had supported China s agenda for economic reform for more than two decades. The series of Technical Cooperation Credits (TCC), or loans, provided the Bank with a unique window of opportunity to engage with the GoC to prepare new development projects. These TCCs umbrella-type operations are designed to provide flexible, just-in-time support to 1 Although referred to as a credit, the Fifth Technical Cooperation Credit (TCC5) was in fact an IBRD loan, as is the case for TCC6. 1

15 the GOC s incremental and evolving reform agenda covering a large number of thematic areas. At the time of TCC5 appraisal, China still did not use DPLs, but was interested in Bank technical support to its reform agenda to address the bottlenecks in many areas. The Bank s Country Partnership Strategy (CPS, ) stated that Given China s financial circumstance and its appropriate development program, the Bank Group aims to be a client-driven knowledge institution that uses lending and other operations to pilot reforms and support institutional development. 5. The Bank was well-positioned to support China in a large number of cutting-edge issues in its comprehensive and complex reform agenda because of its pool of global knowledge and experience in reform in China. This project was the fifth in a series of Technical Cooperation Credit (TCC) project, the first of which was approved in The Second Technical Cooperation Project was approved in Through repeated renewing of this instrument, the GoC had demonstrated that it valued the TCC series with its broad coverage and its rapid response to GoC needs. The third of the series, Reform, Institutional Support and Pre-Investment Project (P003592) closed at the end of 2003 and rated satisfactory by OED. The fourth (P042299) closed at the end of 2009 and was also rated satisfactory by IEG. 6. The Bank and the GoC also partnered with the Department for International Development (DFID-UK) which made available a grant of an additional GBP 5.6 million. These funds were aimed at poverty reduction and gender issues at the provincial level. 1.2 Original Project Development Objectives (PDO) and Key Indicators 7. The objective of the Project as expressed in the Loan Agreement (LA) was to assist the Borrower in implementing its economic reform and development agenda, by strengthening its institutional capacity at the national and sub-national levels to carry out such reform agenda. The PAD front material (p. 6) had virtually an identical formulation of the PDO. To further clarify the PDO, the PAD added the following: The project would result in the adoption and use of sound reform and development strategies, policies and implementation plans through a series of technical assistance subprojects tailored to address specific challenges through institutional capacity building. 2 For the ICR, the PDO from the LA is used and it is the agreed PDO between the Bank and the Borrower. The ICR also assesses the elements in the PAD s further clarification of the PDO (including the adoption and use of sound reform policies). 8. The PDO indicators (from the LA and the PAD results framework) were: (i) high adoption and use of sound reform and development strategies, policies developed under the project; (ii) high level of effectiveness in the implementation of reform and development strategies and policies growing out of the project; (iii) improved soundness of reform and development strategies emerging from the Project. 9. The PDO and PDO indicators were broad in order to accommodate the wide range of activities, most of which were yet to be determined at the time of the PAD. Specific results from 2 Note that the PAD used a slightly different formulation of the PDO in a couple of instances. From the PAD p. 8 (main text) and p. 22 (Annex 3): The project development objective is to assist the GOC in implementing its reform and development agenda by significantly increasing the adoption and use of sound reform and development strategies, policies and implementation plans [in China] through a series of technical assistance subprojects tailored to address specific challenges through institutional capacity building at the national and sub-national levels. 2

16 the sub-projects would determine whether sound reform was achieved, as well as whether the adoption rate was high, and whether a high level of effectiveness in the implementation were also achieved. As stated in the LA, each Subproject shall include performance indicators, satisfactory to the Bank, to monitor and evaluate their implementation and meeting their individual objectives. 1.3 Revised PDO and Key Indicators, and reasons/justification 10. There were no formal revisions to the PDO or to the key indicators. The rationale for not revising the indicators was that the essential realities of the project that many of the activities were still not known and the activities were wide ranging. This appropriateness of this rationale is taken up further in Section Main Beneficiaries 11. Beneficiaries included: i) central government agencies whose staff would build skills and knowledge to contribute to the reform agenda; and ii) provincial level governments, whose capacity is also built. DFID financing targeted poor villagers, migrants and unemployed woman. Chinese citizens as a whole benefit from the improved GoC institutional capacity and better quality of policies. A few examples of beneficiaries include social security recipients in rural areas through a stronger data base for contributions (A27) comprising hundreds of millions of people, workers benefitting from the work-related injury reforms-subproject A3 (an increase of 32 percent during to almost 2 million people), and Hengshui province residents whose lake is now managed under a more sustainable biodiversity plan (C1). 1.5 Original Components 12. TCC5 initially had five components under which all sub-projects were to fall. The PAD identified the first set of 20 (not yet approved) subprojects (number of initial subprojects for each category in parentheses) 3. At the time of appraisal, subprojects were envisioned over the five-year project life. The project financed (i) consulting services, (ii) workshops, training, study tour and other capacity building activities, and (iii) minor equipment needed for the subprojects. Beyond the original subprojects, it was not clear at appraisal how project funds would be distributed among the components. By the end of the project 59 subprojects were approved. 13. Component 1: Reforming the civil service and public finance (3). Two of the subprojects support the MoF in building a database to collect and process data of all personnel of government offices and public service units (PSUs) funded by the central government budget and a study on models of management of state assets in government departments and PSUs. Both support the ongoing implementation of budget reform. Another subproject supports the formulation of regulation and training to implement the Government Procurement Law by the MoF. 14. Component 2: Improving service delivery and social protection (6). The first subproject supports the Henan Provincial Health Bureau to develop a set of standards for quality control and a plan for implementing the standards and carrying out quality assessment of Aids 3 The PAD main text refers to 20 initial subprojects, whereas the PAD Annex 4 details 22 initial subprojects. 3

17 treatment. The second assists the Ministry of Labor and Social Security to improve China s work injury protection system. The third is a study on the coordination and impact assessment of employment policies and social security policies proposed by the MoF. Social security of urban and rural vulnerable groups is the subject of the fourth proposal by Jiangxi province, where 5 million people fall in these groups. The subproject proposed by Gansu Provincial Finance Bureau focuses on training of unemployed women and development of a model that is replicable in other provinces. The sixth pilots a mechanism in poor and remote rural areas to open local schools to communities and adults for communication and learning activities. 15. Component 3: Improving management of land and natural resources (3). The first subproject supports a study of the Ministry of Land and Resources with regard to rural collective built-up land management to protect farmers rights and interests, promote rational land use, and improve farmers living and working conditions. The second supports sustainable development of Hengshui Lake wetland of Hebei province by assisting the municipal government in formulating a strategy and a model of management. The third supports Hainan provincial authorities in testing a model of coordination between ecological protection and economic development in one township of poor farmers. 16. Component 4: Building public and market institutions (4). The first subproject supports China s State Council Leading Group Office of Poverty Alleviation and Development and MoF in piloting a program to test a model of Community Development Fund on poverty alleviation to be governed by the community with full participation of poor farmers. The second supports government s capacity in promoting the development of ethnic minority regions by supporting studies on the special characteristics of ethnic minorities and ethnic minority areas to design community-driven poverty reduction scheme. The third subproject provides support to National Development and Reform Commission in a study on community development policies in urban China. The fourth supports capacity building of China Eximbank, one of the three policy banks in China. 17. Component 5: Improving regional and sectorial development strategy (4). The first subproject is a comprehensive study on development strategy of Qinghai province, one of the poorest provinces in western China. The second is a study on sustainable development strategy of energy and chemical industrial base in Shaanxi province. The third supports the transformation of local economy of Panzhihua city of Sichuan province, which heavily relies on steel industry and natural resources. The fourth will assist Guangxi Region to formulate a strategy in managing three seaports. 18. In addition to the component breakdown, subprojects were categorized according to beneficiary and type of funding and repayment (if any). There were four categories (A-D) with Category B entirely funded by DFID and Category C half funded by DFID and half by IBRD. A summary all subprojects by category and component are in Annex 2. Category A-Subproject financing by IBRD to all central agencies under the State Council with no repayment required; Category B-Subproject financing for the provinces through DFID (emphasizing poverty, gender and environmental sustainability.); Category C-Subproject financing to provinces requiring 50 percent repayment (IBRD) by the beneficiary and 50 percent grant (DFID); and Category D-Subproject funding by IBRD to central agencies and provinces with full repayment by the beneficiary (in line with GoC fiscal decentralization). 4

18 1.6 Revised Components 19. The original components were not revised, though there was some shifting of resources described in Section 1.7 below. In addition, Component 6: Strengthening Institutional Capacity was defined during implementation, which included several subprojects to: i) increase civil servants capacity for making and implementing policy; ii) revise existing rules and regulations to strengthen guidance and administer International Financial Institution (IFI) operations, which is the mandate of the MoF; and iii) carry out monitoring and evaluation of project outcomes achieved by subprojects. 1.7 Other Significant Changes 20. As project implementation progressed, it became evident that there was less of a demand for Category D type subprojects because of the full repayment requirement, and, to a lesser extent for Category C. As a result, resources (US$3 million) were reallocated from Category D to Category A-from US$10 million to US$13 million (Table 1a). Another change was through an amendment to the LA (dated July 25, 2011) where the Bank agreed to finance 100 percent of two Category C subprojects as per GoC request, because these two DFID-funded subprojects were extending beyond the DFID closing date (March 31, 2011). By the end of the project, the level of grant funding from DFID was about half of the originally planned US$10 million (Table 1b). DFID did not extend the closing date of the grant because of a change in DFID s China country policy that concluded that China was no longer in need of DFID s financial support. DFID resources were not reallocated. The schedule changes were the extensions of the project closing date, first from December 31, 2011 to December 31, 2013 and then further to June 30, 2015, for the purpose of allowing time for the implementation of a number of subprojects. Table 1: Project Expenditures by Subproject Category Table 1a: IBRD Expenditures by Sub-Project Category (million US$) Sub-project Category Planned Expenditure Adjusted Expenditure Actual Expenditure Percent of Adjusted Plan A % C % D % Unallocated N/A Front-end Fee % Total % Table 1b: DFID Expenditures by Sub-Project Category (Million GBP) Sub-project Category Planned Expenditure Actual Expenditure Percent of Plan B % C % Unallocated 2.58 N/A Total % 5

19 2. Key Factors Affecting Implementation and Outcomes 2.1 Project Preparation, Design and Quality at Entry TCC5 Overview 21. TCC5 was the fifth in a series of Bank-supported Technical Assistance (TA-lending) projects to China that dates back to TCC1-TCC3 provided resources mainly to prepare other Bank-supported projects. TCC4 likewise provided resources for project preparation, but also supported the GoC reform program through subprojects initiated by various ministries and provinces. TCC5 continued in that evolution and was allocated entirely to support implementation of GoC reforms through subprojects. These subprojects took between one and three years to complete with funding typically around US$300,000 per subproject. The GoC reform program which TCC5 supported was defined in the document, The Decision on Issues Perfecting the Socialist Market Economic System, adopted by the CPC s Third Plenum, 16th central committee, and by the Eleventh Five-Year Plan GoC viewed TCC5 as an opportunity to engage with the Bank on a large number of important issues (including tax law, accounting reforms, and capacity building as well as poverty and gender-specific interventions) in a timely fashion, and, hopefully, help accelerate an economic and institutional reform program that had slowed. The best way to engage, in the absence of development policy lending (DPL), which, until recently, was not used in China, was through the TCC5 s demand-driven, recipient-owned and managed approach. The success of this approach rested on the performance of the underlying subprojects which were guided by formal selection criteria laid out in the PAD. The overall TCC5 project took 3.5 years longer to implement than originally envisioned, but was well-received by the vast majority of beneficiaries. Annex 11 provides a timeline of TCC5 and related events. 23. The initial 22 projects were identified at the PAD stage through a participatory process. The initial 22 subprojects were put forward during the TCC5 identification mission. The MoF convened representatives from a range of agencies and provinces to present their concepts for use of TCC5 funds in an intensive three-day meeting. These projects had to support either the national plan or local development strategies and fit into one of the five thematic components of TCC5. These subprojects were identified only as concepts at the time of the PAD, but then were required to go through the full preparation process which took 2-3 months to complete. Of the 22 initial projects, 18 were finally endorsed by the PMO and the World Bank, accounting for about one-third of the loan. Risks and Mitigation at Preparation Stage 24. TCC5 was an umbrella project in which there were many unknowns, including the number of subprojects, the distribution of project funds across components and expenditure categories, as well as many of the implementing agencies and participating provinces along with their capacities to design, implement and evaluate. As such, TCC5 posed a number of risks beyond those of typical investment projects. 25. Project selection criteria mitigated the risks of poorly-defined subprojects, of nonalignment with the GoC reform agenda (and the Country Partnership Strategy-CPS ), and the risk that TCC5 resources would not translate into adopted policies. A key risk was that with many of the subprojects not yet defined at effectiveness, the subprojects would not be sufficiently scoped out to be successfully implemented. This risk was mitigated by sub-project 6

20 selection criteria (PAD pp ). These criteria aimed to ensure that subprojects: i) had proposals that were closely aligned with national and provincial development strategies; ii) were strongly owned by Subproject Implementation Agencies (SIAs); iii) dissemination of outputs was emphasized (supported by 5 percent of the subproject budget); iv) supported at least one of the five component areas; v) offered some potential for replication or scaling up; and vi), had detailed costing and procurement plans and an implementation schedule. The subprojects were to be at least US$100,000, but typically US$300,000. Subproject proposals were screened by the Project Management Office (PMO) and revised, if necessary. After further review, the Bank and DFID approved proposals through no-objection. Batches of proposals were submitted on a semi-annual basis. TCC5 also helped deal with a number of risks to the country program which included stagnation in the reform process, weakness in the financial sector and unsustainable debt levels (CPS p. 45) by supporting activities to improve economic analysis and policy development. 26. TCC5 design took steps to lower the risk of weak M&E. A key lesson from previous TCC s was that M&E needed to be strengthened vis-à-vis TCC3 and 4, a fact recognized by both the Bank and the MOF. Therefore, the PMO developed guidelines for subproject proposals to ensure better M&E frameworks. The guidelines for subprojects included concept and proposal templates and semi-annual reporting, and individual subproject implementation completion reports (ICRs). All subprojects produced ICRs. The results framework at the aggregate project level was, however, weak (Section 2.3). 27. The risks of organizational changes, low level of staffing and staff turnover were not fully mitigated. These risks were to be mitigated by adequate staffing of the PMO, as well as on the Bank side. However, the PMO had only 1-2 staff at a time working on TCC5. On the Bank side, while the Bank was able to provide valuable technical assistance in most cases, the Bank side staff were working under a tight supervision budget. Key Project Design Features Contributing to TCC5 Success 28. The project had a high degree of flexibility to adapt to the evolving needs of GoC. The GoC learned from TCC4 that the subproject approach ensured that project funded activities would be relevant to country priorities as called for in the PDO. It also ensured that the design was demand-driven because many different individual agencies and provincial authorities had to propose an activity along with a budget and procurement plan and meet the selection criteria in order to receive funds. TCC5 design was unique, but while the project encompassed many different activities, it was, in some ways, similar to community driven development projects in which many villages may receive allocations for a range of priority needs. The design offered the advantage of fast assessment and approval of subprojects, i.e., several weeks to two months, compared with 1 to 2 years for a standard standalone investment project. 29. Provision of Bank expertise/value added was the top priority for GoC. GoC observed the value of Bank expertise in previous TCC projects. In preparing the project, the driving principle was to utilize the Bank s best technical and managerial expertise to add value at four key junctures: i) the development of the subproject concepts; ii) Peer review of subproject proposals; iii) assistance with detailed TORs for consultants; and iv) feedback on the final deliverable. Section 2.2 provides several examples of Bank technical support 30. The addition of grant funding helped expand TCC5 s reach to activities focused on poverty reduction, gender and environmental sustainability. TCC5 added the new dimension (compared to TCC4) of a co-financer, DFID. DFID pledged GBP5.71 million at grant terms. The additional funds made it possible to have four funding categories (A-D) for the sub-projects-loan, 7

21 grant, mixed grant (50% repayment) and loan (100% repayment)-to better focus on poverty reduction, gender and the environment. 2.2 Implementation 31. Implementation was managed, as with previous TCC projects, by a PMO residing in the International Department of the MoF. SIAs set up Subproject management Offices (SMOs) headed by staff to design and implement the subprojects. The project was restructured twice, but only to extend the closing date as described above. The project was never considered at risk. Mid-Term Review (MTR) 32. At the time of the MTR (October 2008-two years after effectiveness), the project was slightly behind schedule with 31 percent of loan proceeds and 46 percent of grant proceeds allocated to 29 subprojects. The MTR acknowledged the significant step forward that SIAs were required to establish objectives that could be evaluated and an approach to evaluate them at the end of the subproject. Further to that, TCC5 performed a good practice by pilot testing the first ICR for a subproject and working with the associated SIA to develop a template for ICRs for all other subprojects. This practice proved beneficial because the ICRs, or Self-Assessments, of the subprojects were helpful in evaluating the overall TCC5 project after close. 33. The MTR observed variable performance at the subproject level and identified measures to improve performance. An important issue was that SIA ownership of the proposal was weak in some instances because staff were not convinced of the relevance and value of some of the key activities. Other issues included delays of months in implementation after approval and weak contract management, mainly owing to the lack of timely management and payment of consultants. These issues were dealt with through increased intervention by the PMO as well as daily supervision by the Bank missions. 34. The MTR also recognized that more time would be needed to use available funds and that resources should be shifted from Categories C and D to Category A subprojects. Both of these actions were taken, though the first extension of the closing date was not officially requested until It was explained to the ICR team that the Bank team did not revise the results framework essentially because the fundamental realities of the project did not change; it remained an umbrella project with a wide range of diverse sub-projects that did not lend themselves well to aggregation through project-wide indicators. The decision not to revise the results framework is supported by the ICR for TCC4 (and reviewed by OED-IEG). The TCC4 ICR stated, It is more appropriate and meaningful to monitor and evaluate outcome achievement at the subproject level, and incorporate a revised results framework at ICR stage (ICR p. 2). However, this TCC5 ICR takes a different position that it was still possible to generate a more cohesive picture of TCC5 progress through both quantitative and qualitative evidence (see Sections 2.3 and 3.2). 36. The subproject screening benefited from Bank and DFID technical inputs and was selective. It was the GoC s, DFID s and the Bank s policy to work with proposals for new subprojects and to improve them to enhance the potential for success. There were some cases in which the proposal had to be ultimately rejected. This represented fewer than 10 cases, with the main reason for rejection being lack of relevance to the GoC agenda. Lack of adequate capacity to improve the proposal or to implement were other grounds. The project selection criteria and 8

22 approval procedures ensured relevance of subprojects to the PDO and adequate M&E reporting at the subproject level. 37. Subprojects helped leverage funds for related projects. In addition to the DFID funds which provided grant support for poverty and gender issues, TCC5 subprojects led to scaling up and a number of larger investment projects, including: i) Subproject A-29 to establish a system of General Practitioners which secured an additional US$2 million for tests in 10 pilot areas; ii) Anhui province subproject B-8 Migrant workers labor rights protection, which led to a full size project; iii) Development of labor service in poverty areas of Ningxia Hui autonomous region also led to a much larger, Bank-supported investment project; and iv) Hengshui Lake Sustainable Development Plan led to years of budget support for the program as well as Euro 12 million support from Germany. 38. Funding that did not require any repayment by subprojects was more fully utilized than that which required full or half repayment (Table 1). As discussed earlier, the project team responded to this trend by shifting funding from Category C and D subprojects (full repayment/half repayment) to Category A (no repayment). The reason for the pattern of utilization was simply that not having to repay subproject financing was more attractive than having to repay, which affected fund utilization. This finding that highlights the risk of required repayment was verified at the ICR workshop in June 2015 in Beijing. 39. TCC5 addressed a number of technical and capacity bottlenecks in the GoC reform program. On the technical side, TCC5, for example, helped introduce fiscal accrual accounting into MOF s government accounting system which used cash-based accounting. TCC5 also helped MoF draft a VAT law (subproject A11), design of government procurement reform (A34), improve foreign debt statistics (A13), improve the GoC AIDS program and set up an agricultural insurance scheme to mitigate weather related risks to farmers (D10). Examples of addressing capacity bottlenecks include training in helping Chinese officials learn to manage innovation (A25), and in improving expertise in international investment banking (the China EXIM Bank subproject-d1). 40. The project also addressed bottlenecks through a pilot approach. This approach used by TCC5 tested innovations at a locality before introducing the innovation on a broader basis. These pilots include subprojects dealing with rural property rights (D7), CDD for sustainable forestry (C5), rural pension schemes (A27), workers injury system (A3), and establishing a system for general practitioners (doctors-a29). Each of these pilots was successful and later expanded. 41. The Bank s inputs were key to subproject success. As designed, the Bank provided inputs at all subproject stages: i) preparation through inputs in both technical substance and operational feasibility to refine proposals; ii) implementation--through reviewing and refining TORs in which implementation agencies learned how to prepare a well-defined (despite weak TORs initially), reviewing consultants proposals (technical and financial), reviewing outputs of subprojects where Bank specialists are invited to participate in workshop and provide comments for different drafts of studies, reviewing and commenting on 6-month subproject progress reports, and through semi-annual supervision missions (conducted by MOF PMO and the Bank); and iii) completion--through review of subproject completion reports (subproject s ICR) and Bank participation in the dissemination workshop. One example where Bank inputs were key was in subproject A34 Policy Functions of Chinese government procurement in the context of the Accession to the WTO Agreement on Government Procurement. The Bank was able to bring international best practices to the GoC s procurement reforms for entry into the Government Procurement Agreement (GPA). As a result, the GPA office in the treasury department has studied relevant country experiences and practices, and has brought together international experts in GPA 9

23 to advise Chinese negotiators, policy makers, and industrial officials on GPA rules and negotiation bid rules. An international workshop was recently held in Beijing and the Bank procurement team and senior manager attended the workshop. Another example is subproject A27 Assessment of the policy implementation of rural and urban pension system and strengthening institutional capacity, which contributed to the State Council s document Unified Urban and Rural Residents basic pension schemes (State council Document [2014] no. 8). The Bank gave technical support in preparing the proposal and TORs. The Bank Social Protection specialist participated in technical discussions with the SIA and consultants on surveys and findings of the studies. 42. At project closing, component financing was somewhat different from the original estimate (sector coding), as was thematic coding allocations (Table 2 and Basic Data Sheet). Because of its demand-driven project nature, it was not clear at the outset how the expenditures would be distributed by the end of the project, nor was there a particular aim to balance the funding amongst components. From a funding standpoint, TCC5 addressed reform bottlenecks in each of the six component areas to a significant degree. The theme allocation changed significantly because the original allocation was based on the initial set of subprojects, while the project continued for more than eight years and spanned two 5-Year Plans. It was recognized after implementation that most TCC5 subprojects fit under the theme of financial management, procurement, and public expenditure, which reflected the priority areas for the reform agenda and which cut across all TCC5 components. Table 2: Number of Subprojects and Cost by TCC5 Component Component Number of Subprojects Total USD Disbursed (million) 1. Reforming the civil service and public finance 2. Improving service delivery and social protection 3. Improving management of land and natural resources 4. Building public and market institutions Improving regional and sectorial Total GBP Disbursed (million) development strategy 6. Strengthening Institutional Capacity Total The GBP amounts were financed by DFID. 2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization 43. Design. TCC5 faced significant challenges in measuring the results of a growing number (ultimately 59) of wide-ranging subprojects. The TCC5 results framework (PAD p. 22) relied mainly on three broad PDO indicators which, rather than having specific targets, referred to evidence for each of the PDO indicators. These PDO indicators were consistent with the PDO, i.e., support to the GoC reform and development agenda, and capacity building at the national and subnational levels. Results measurement was conducted at the subproject level, which was appropriate because each subproject was an independent, self-contained set of activities. The PAD identified monitoring indicators (PDO and intermediate) and arrangements at the subproject level for the first 22 subprojects (PAD-pp ). However the indicators were mainly output-oriented, 10

24 consisting primarily of whether a task (e.g., a study) was completed. Without targets or clear definitions of the PDO indicators, it was difficult to track overall outcomes of TCC5 and the results framework did not do justice to the accomplishments of the TCC5 project. 44. Implementation and Utilization. Each subproject, as required by the selection criteria, carried out M&E for subproject activities. This M&E measured progress of each subproject relative to its program, budget and procurement plan, and reported to the PMO and the Bank on a semiannual basis, which allowed for an appropriate level of both administrative and technical interventions. Subprojects also produced an end-of-project self-assessment according to a template, which ensured consistency across subprojects. In the Bank ISRs, the project team classified subprojects as contributing to each of the three, broad PDO indicators, with the total number of subprojects (59) listed as the target for each PDO indicator. This target was not correctly specified on two grounds: it did not sufficiently capture the indicator and it incorrectly assumed that all TCC5 subprojects must contribute to all of the three PDO indicators. Thus, the presentation of results in the final ISR may lead to the incorrect conclusion that the PDO was not achieved (because actuals fall well short of targets for all three PDO indicators). What is more important to the evaluation of TCC5 are the underlying results from the subprojects and their relevance to achieving the PDO. Annex 1 to the final ISR for TCC5 partially performs this task by documenting outputs relative to objectives for all 59 subprojects, but does not relate the results to the PDO. 45. ICR supplemental evaluation for overall project. The ICR has further reviewed M&E data from individual subprojects in order to produce a fuller assessment of overall PDO achievement. The ICR goes a step beyond the ISR annex, and draws out additional information from subproject self-assessments to assess the PDO. With respect to M&E, the bottom line is that TCC5 design and implementation provided for M&E at the subproject level, but did not adequately present a results chain nor a project-wide picture of achievement of the elements of the PDO. 2.4 Safeguard and Fiduciary Compliance 46. All legal covenants for the project, i.e., quarterly reporting and carrying out the MTR, were complied with. The fiduciary risk for this project was also rated low. 47. Financial Management. The assessment of FM capacity at the MoF was that its system was adequate to ensure intended use of funds. All audit reports were unqualified and on time as required by the Loan Agreement. There were no significant issues and FM was rated satisfactory by supervision and by the PRIMA assessment. 48. Procurement. There was one procurement issue of non-compliance with the Bank s procurement policy which was identified by the auditor. This issue was resolved through MoF s reply to the National Audit Office and the World Bank, which documented the measures taken. The procurement rating was raised to satisfactory in the final ISR because the issue was resolved and there was no deviation in the recent review. 49. Safeguards. Safeguards policy OP 4.10 was triggered by one of the original subprojects. The PAD (p. 35) explained that the subproject design conformed with the principles of OP4.10, including informed consultation, participation and cultural respect. TCC5 was also an environmental Category C project as no environmental safeguard policies were triggered. Safeguards staff reviewed all subproject proposals and concluded that no safeguards policies were triggered. At the second extension of the project, the Regional Safeguards Secretariat (RSS) appropriately reviewed the Category C status and concluded that it remained valid. Social safeguards specialists did not find any safeguards issues during the reviews. 11

25 2.5 Post-completion Operation/Next Phase 50. The completed subproject outputs are mainstreamed into the GoC s ongoing business as part of the reform and development agenda. The 115 policy measures, to which TCC5 activities contributed, have all been implemented at central and provincial levels and are now part of the normal course of operations in the government (Annex 10 lists the main policy measures). In addition, the Bank is supporting a follow-on project, the TCC6 Economic Transformation and Institutional Capacity Building Project, which became effective on July 30, 2014 (PAD dated April 21, 2014). TCC6 continues Bank support for the GoC reform agenda, using a similar subproject approach. 3. Assessment of Outcomes 3.1 Relevance of Objectives, Design and Implementation Overall relevance rating: Substantial 51. Objectives-High. TCC5 objectives were well-aligned with GoC reform and development agenda as expressed in The Decision and the 11 th 5-Year Plan, and continued to be highly relevant under the 12 th 5-Year Plan ( ). The PDO specifically referred to assistance to the implementation of the GoC agenda, which the ICR interprets as alignment with the GoC agenda and therefore relevance. TCC5 continued to be relevant to the objectives of the 12 th Five Year Plan, which continued through the end of the project. These objectives include: China s aim for scientific and sustainable development (soundness of reforms). Promoting regional and urban development to reduce regional disparity and income inequality, providing better public services and establishing social security systems (capacity building at national and subnational levels and support to GoC agenda). Institutional reforms to improve macroeconomic management including fiscal, administrative, financial, and SOE reforms, and those reforms to ensure more equitable social services for all are given priority (improved implementation, capacity building and soundness of reforms). 52. Design-Substantial. The relevance of the TCC5 design was maintained by its flexible, demand-driven approach that ensured continued alignment with the GoC development agenda. Applicants for project funds were required to proactively devise a detailed plan with budget and clear objectives in order to obtain project funds. The project components also aligned well with the reform priorities of the GoC. 53. Implementation-Substantial. During implementation the project made wide use of local expertise (most consultants were Chinese) that understood the local context, which helped contribute to higher adoption of policy recommendations. TCC5 activities, in some instances also led to the preparation of larger projects. The Bank played an important role as knowledge connector by ensuring appropriate overseas training for GoC staff and by conveying international best practices (e.g., debt measurement, accrual accounting, etc.). Trainees reported to the ICR field mission, their training was directly applied to their job upon return from training (see examples in Section 3.2). One area where relevance could have been enhanced is in an update of the results framework to aggregate the outcomes related to the PDO, particularly as more and more subprojects were implemented. Such an effort would have signaled along the way the project s overall impact in addressing specific bottlenecks of reform. 12

26 3.2 Achievement of Project Development Objectives Rating: Substantial 54. TCC5 was a long duration (eight years and eight months), complex (59 independent subprojects) investment operation that supported a substantial number of high impact activities, which more than justify the Bank resources allocated to this project. The main limitation in claiming PDO achievement owes to the weak results framework, which should have been addressed during implementation. The final ISR rated outcome moderately satisfactory mainly because of the weak results framework. The ICR has mitigated this weakness by presenting additional evidence beyond that found in the results framework. 55. The PDO was to assist the Borrower in implementing its economic reform and development agenda, by strengthening its institutional capacity at the national and sub-national levels to carry out such reform agenda. The project results framework indicated that achievement of this PDO will be shown by high adoption of sound economic policies, reflecting a high level of effectiveness in the implementation of reform and development strategies. Evidence of achievement of the PDO therefore needs to show that the project: i) supported the GoC reform and development agenda; ii) built capacity at the national and subnational levels; iii) contributed to improved soundness of reforms; and iv) achieved a high level of effectiveness of implementation of reform strategies (as indicated by a high adoption rate of sound reforms). Each of these elements of the PDO is evaluated on the basis of reviews of the 59 individual subprojects. 56. Because of the large number and wide range of subprojects, it is not feasible to capture all of the achievements of TCC5 through a few select indicators. The ICR has however, calculated an aggregate outcome indicator, the rate of adoption of policies, as well as output indicators including the number of staff trained and numbers of studies and policies produced. For TCC5, evidence of outcomes is best presented through specific examples of different types of subprojects and groupings according that represent bottlenecks to the reform agenda. (Results of the full set of 59 subprojects are found in Annex 2-B.) Boxes 1, 2 and 3 provide concrete examples of the results of selected subprojects illustrating changes of policies, practices and systems and leveraging of project resources for scaling up. Some of the evidence is intermediate outcomes, such as capacity building, that is likely to have a significant positive impact in achieving GoC s reform and development agenda. Many of the subprojects support multiple elements of the PDO, as noted in the examples. Policy measures developed through TCC5 are conceived and implemented primarily at the Ministerial and Provincial levels. However, there were also policy recommendations and measures from the subprojects that were incorporated into the Party and State Council s policy documents on a national level (Annex 10 provides details). 1) Support for the China reform and development agenda 57. To demonstrate support to the reform agenda, the subprojects must be aligned with the priorities of this agenda and produce, or be likely to produce a positive impact ( likely to because, as with DPOs, impact may not be realized until after the operation closes). Section 3.1 rated the overall relevance to national priorities as substantial. All subprojects met the following selection criterion, The Subproject proposal shall contain a detailed description of objectives, activities and expected benefits, including its direct relation in assisting the Borrower s reform and development agenda. (PAD p. 12). Thus, all sub-projects supported the reform and development agenda at national and/or subnational levels. Beyond that, in 25 cases, subprojects supported specific policies in the GoC agenda (Annex 2-B). The Boxes below provide a number of concrete examples of support for the reform agenda. 13

27 Box 1: Support for the China Reform and Development Agenda 1. Value added Tax (VAT)"-A11 (Component: Reforming the civil service and public finance-us$299,229) VAT is the largest tax revenue category (26% of total in 2013), but it is governed administrative directives (amended in 2009) rather than by law. VAT was slated for reform in the 11 th Five Year Plan period. (Reform soundness and support to the reform agenda). The Budget Committee, National People s Congress and the Tax Policy Department of the MoF researched the experience of VAT in other countries in order to guide the VAT reform for the VAT law for the Legislative Plan of the Standing Committee of NPC. Results included: Research resulted in a draft of VAT law, which was accepted by the 11 th National People s Congress in 2010 and also included in the 5-Year Legislation Plan of the Standing Committee of NPC. In the 12 th National People s Congress ( ), promulgation of VAT Law has been upgraded as priority in NPC s legislative agenda. (To be passed soon). VAT revenue continued to increase-37% during to CY2.9 trillion. This subproject represents changing of systems and practices and was aligned with implement tax reform in GOC agenda. (Evidence for support to the GoC reform and development agenda and high adoption of reform and development policies. 2. Sustainable Development Strategy Plan at Hengshui Lake Wetland, Hebei Province-C1 (Component: Managing land and natural resources-us$167,172 and GBP100, 274). C1 conducted a comprehensive biodiversity survey of Hengshui Lake wetland, providing scientific guidelines for future conservation work and management. With inputs from Bank Experts, this work led to the Hengshui Lake Wetland Sustainable Development Strategy Plan and Eco-tourism Development Plan with policy recommendations adopted in Hengshui city government document No.21 <2007> on prohibition of net-pen fish culture and blocking breeding in the lake. Subsequently, this effort was able to leverage government funding of a total of CY157 million ( ) for wetland biodiversity and eco-protection, a pilot for Payment for Ecological Services (PES) of CY35 million ( ), and a loan of Euro12 million from Germany s KfW for wetland protection and rehabilitation (July 2014), for total leveraging of about 270 times the original subproject. (Support to GoC provincial agenda) 2) Capacity Building at national and subnational levels 58. Evidence for capacity building includes not only the increase in number of newly trained staff in provinces / ministries, but also evidence that government units are now using that training at national and subnational levels (Box 2). There was a strong effort throughout the TCC5 components to build capacity at these levels. Component 6 was dedicated exclusively to capacity building and included subproject A20-MoF Overseas Training and Capacity Development Program, which financed various types of short and longer term training. An ICR focus group of recipients of training from A-20 reported that the training was specific to their agencies priorities and that in each case the new knowledge was applied to their jobs. Examples include improved climate change adaptation policy in agriculture, and management of debt at the city level. Across all subprojects, 622 civil servants received overseas training overseas, while an additional 9,167 people were trained domestically, mainly through workshops (Annex 2-A). 14

28 Box 2: Capacity Building at National and Subnational Levels 3. Enhancing the institutional capacity of the Chinese Eximbank-D01 (US$872,399) was completed in The subproject has high, long-term impact as participants of the overseas training programs have disseminated their knowledge by giving frequent lectures in internal training programs, and have often been promoted to decision-making positions. Eximbank has since established regular capacity development programs under TCC5, including 1 to 2 groups of 20 people delegation for overseas training for a month every year, as well as medium and longer-term training programs of 4 to 6 months. (Capacity building national level). 4. MoF Overseas Training and Capacity Development Program-A20 (US$1,318,341) and Framework for Government accounting-a14 (US$596,910) A-14 tested the feasibility of accrual accounting to replace China s cash-based system, and aimed at establishing a framework for China s government accounting reform, working out an implementation plan for the reform and laying a solid foundation for perfecting China s government accounting management. Results include: Report to the State Council, achieving subproject objective providing a framework for China s government accounting reform ; Research results adopted in State Council Document No.63 <2014> and MOF document No.25 <2010>, No.27 <2010>, No.148 <2010>, No.218 <2013>; Provided practical method to transform data from the old cash-basis system based on accrual accounting rules (MOF document No.148 <2010>), supporting the transition to the accrual government accounting system. An MoF participant in A20 studied at the Canadian Accounting Standards Board for 6 months to learn about Accrual-basis accounting ( 权责发生制,quanze fasheng zhi), and then provided training to local governments. All 31 provinces, most cities and a large number of counties now use accrual-basis rather than cash-basis accounting for government financial reporting. (Capacity building and reform soundness as well as generating synergy between two subprojects). 5. Talent Training and Talent Management-A25 (US$1,695,751) implemented by the Organization department of CPC and China Executive Leadership Academy, (CELAP) Pudong Shanghai. The sub-project addressed the bottlenecks in talent management policy and capacity which was impeding China s need for innovation (expressed in the 12 th 5- Year Plan. Achievements included 1) overseas training for 50 leaders/talents in science and technology; 2) policy training for 500 civil servants engaged in talent management policies. A study on Talent Management Reform was recently published and will be used for follow-up capacity development activities in CELAP and other CPC Administrative Training Schools CPC) and universities. In light of the emphasis on an innovation-led economy (the 13th 5-Year Plan), the demand for this publication is expected to reach 200,000 copies. CELAP/book website: 3) Improved soundness of reforms 59. Evidence for soundness of reforms includes examples of intended policy measures that were developed and underpinned with evidence-based analytical work supported by the project. (Note that this is an interpretation by the ICR as soundness was not defined in the PAD). Soundness 15

29 also overlaps with support to the GoC agenda, so evidence for one part of the PDO is often evidence for the other. Soundness could also indicated by positive results of policies supported by TCC5. However, policies have not been in place long enough to final outcomes. 6. Statistical Standards and Statistical Monitoring of External Debt (SAFE)-A13 (US$283,798) and Indicators for Financial Statistics and Statistical Standardization, PBC-A19 (US$242,049) A13 and A19 worked together to improve foreign debt statistics, thus promoting more scientific (sounder) decision-making in macroeconomic management and key to the credibility of debt statistics. A13 aimed at including external debts denominated in RMB into external debt statistics, and establishing an international standard external debt statistical system, the Special Data Dissemination Standard (SDDS) as required by the IMF, which imposed higher requirements on data coverage, timeliness and quality as well accessibility by the public. The task team from the State Administration of Foreign Exchange (SAFE) worked closely with the People s Bank of China (PBC) in subproject A19. Results included: Box 3: Improved Soundness of Reform and Development Strategies and Policies Submitted report to the State Council, which was aligned with promote financial management system reform in GOC agenda; Research results adopted in SAFE document No.38 <2011>, which for the first time defined the principles for management and statistics of RMB external debt in policy document, achieving subproject objective include external debts denominated in RMB into external debt statistics ; Adjusted data collection method based on new debt definition, built comprehensive database with both foreign and domestic currency-denominated external debt; and Provided statistical training for SAFE s 36 provincial branches and head office On August 12, 2015, PBOC and SAFE held a Press Conference and answered questions on China s full-scale External Debt, Foreign Exchange Reserves and Gold Reserves. See the weblink to the press conference, where data tables were presented. The subprojects have improved the accuracy and transparency of China s statistics on foreign debt, which will improve macroeconomic decision-making through more accurate statistics. 7. Social Security System-A27 (US$227,000) TCC5 financed a survey 6,000 sets of questionnaires, established a large information system, and developed 10 policy measures. As a result of these policies, rural people now have stronger incentives to make regular contributions to the SSS with the average annual contribution amount increased to CNY248 per participant in At the same time, local governments were able to increase the subsidy levels by CNY50 per person per month. There was also training for 1,500 officials each year, reaching to 5,000 in 3 years. Total rural and urban pension participants increased from million in 2010 to million in 2013 (China Statistical Yearbook 2014), on track to meet the goal of universal coverage by 2020 (International Labor Office-ILO report 2015). (Reform soundness because of greater accuracy from information system.) 4) High adoption rate and High Effectiveness of Implementation of Reform and Development Strategies 16

30 60. The ICR has calculated an adoption rate of sound reform policies in Table 3, which summarizes the policy adoption rate achieved by project component. This table is based on an ICR review of the sub-project self-assessments and identifies the target as those subprojects which included subprojects specifying a certain policy/law as their objective as well as those referring to general "policy recommendations" in their proposals, totaling is 46 subprojects. Of this total, 38 subprojects explicitly identified adopted policies in their self-assessments. By this measure, the adoption rate was 83 percent. A target was not established for this indicator, however, an 83 percent adoption rate would seem high by any standard. 4 The fact that the underlying technical work resulted in an adopted policy 83 percent of the time is the main evidence for effectiveness of implementation. High rates of adoption were also achieved for each component. The subproject examples provided in Boxes 1-3 and the full set in Annex 2-B provide further evidence of effective implementation in addressing GoC priorities. In total, 115 policy measures were created and adopted during the life of the project (Annex 10). Table 3: Number of Subprojects Aiming at and Achieving Policy Adoption Component Target Actual Reforming the civil service and public finance Improving service delivery and social protection Building public and market institutions 9 7 Managing land and natural resources 8 7 Improving Regional and Sectoral Development Strategy 3 2 Strengthening institutional Capacity 1 1 Total Intermediate indicators 61. Six of the seven intermediate indicators referred to higher quality of the reform process for each of the TCC5 components. These indicators are somewhat duplicative of the PDO indicators (soundness of reform, effectiveness of implementation and high adoption), for which evidence has already been provided above. Intermediate indicators from the ISR do provide a record for individual project components through the frequency of subproject success by reform area/component (Table 4) based on self-assessments. Forty-seven out of 59 subprojects (80 percent) fully met their objectives according to self-assessments, while seven (12 percent) partially met their objectives. Only five out of 59 subprojects did not meet objectives, which yields a low failure rate (8 percent). These findings are consistent with an overall substantial achievement of objectives percent, as implied in the final ISR, cannot be reasonably assumed as a minimum threshold for a satisfactory rating because of the risks to full implementation of subprojects outputs. 17

31 Table 4: Frequency of Subprojects Meeting Own Objectives by Component Component Objectives fully achieved Objectives Partially Achieved Objectives Not Achieved 1. Reforming the Civil Service and Public Finance Improving Service Delivery and Social Projection Building Public and Market Institutions Managing Land and Natural Resources Improving Regional and Sectoral Development Strategies 6. Strengthening Institutional Capacity 3 0 Total 47 7/a 5/b /a. Of this total of 7, A30, A32, A33 and A34 are likely to achieve intended outcome as feedback on policy-related studies is not yet available. /b. Of this total of five, one subproject (D02) failed and four had only limited achievement. 62. The other intermediate indicator referred to More policy focus on MDGs in project regions and departments for each component of the project. There were a number of subprojects that promoted Millennium Development Goals particularly in the areas of: i) assistance to vulnerable groups; ii) poverty reduction; iii) fight against AIDS; and iv) environmental sustainability. The ISR reports that 11 of 15 projects met this indicator. Beyond that, progress toward specific MDGs was not measured in connection with the project. Independent Assessment of 27 Subprojects 63. The Ministry of Science and Technology reviewed 27 subprojects that were completed by 2013 and found that 22 of the subprojects were successful, five partially successful and 0 unsuccessful ( The Comprehensive Evaluation Report of the 27 Subprojects ). The report critiqued the lack of a tracking system of policy impact of subprojects with which the ICR concurs. The report also cited the longer than expected implementation of individual subprojects (1.6 years planned vs. 2.5 years actual). The ICR agrees generally with this independent assessment on these main findings for this set of projects. The conclusions do need to be qualified by the fact that the review does not include more than half (32) of the completed subprojects. Would the GoC have accomplished many of these activities without the project? 64. The answer to this question is probably not in many, if not most, cases, for three main reasons: 1) individual government agencies, particularly at the provincial level, faced financial constraints that would not allow them to fund typical soft project activities that required expenditures on training, particularly foreign training, travel and consultants who wrote many of the papers needed to underpin the reform and development agenda; 2) the high degree of relevance and quality of the subprojects was achieved with the combined support of the PMO and the Bank and DFID as development partners; and 3) TCC5 provided a mandate for reform activities through a centrally and formally approved project. The attribution of a financial constraint is supported by the fact that agencies at the provincial level found repayment difficult, particularly 100 percent repayment. At the ICR workshop and during subsequent field work, when asked if it would have been possible to conduct the subproject without TCC5, most participants said it would have been possible, but would have taken longer and would not have been as high a quality mainly because of much better access to new knowledge through association with the Bank, funding for consultants to do studies and funding for capacity building. 18

32 65. While achievement could be rated as high, given the large number of high impact activities, there is insufficient, definitive outcome data for a high rating. The rating is therefore substantial. 3.3 Efficiency Rating: Substantial 66. The achievements laid out in Section 3.2 and Annex 2-B have been significant to the success of the reform programs in China for the past nine years and indicate a high value of money for this project. The amount of funds used, US$22 million (US$17.2 million IBRD) is an extremely small investment in light of the large number (115) of policy measures adopted, institutional development and capacity building. A series of DPOs accomplishing a similar magnitude of policy reforms could easily amount to US$800 million to US$1 billion, or times the resources provided through TCC5. TCC5 allowed the Bank to support key reforms in the world s most populous country for a very modest cost. 67. While there was neither an economic nor efficiency analysis at appraisal, it possible, based on only a few subprojects, to build a strong economic justification for this project. For example, if the VAT law supported by the project (A11) resulted in even a 0.01 percent enhancement in VAT revenues (total revenue of CY2.9 trillion), the collection would translate to almost US$50 million in GoC revenues. The improvements in measuring Chinese external debt (A13) will result in improved debt management and create a higher degree of confidence in debt statistics. This could lead to lower the costs of borrowing by amounts far greater than the TCC5 envelope. The social security information system (A27) can help improve and sustain a social security system benefiting hundreds of millions of rural workers. 68. Implementation efficiency also had strong points in procuring consulting services, which accounted for more than 65 percent of subproject costs on average. Consulting services, for example, were purchased at a much lower unit cost in China (US$150 daily), compared with international rates (US$500). The average cost of overseas training or studies tours ranged from US$3,260 to US$6,146 per person per trip, depending on the length of visit and the destination country. It was reported that the value for money of overseas training in many cases is higher compared with hiring international experts to provide training in China. The amount of Bank budget to supervise the project was under US$1 million, far less than would be the Bank budget costs for a series of DPOs. What lowers the rating to substantial are the two extensions of the project closing date totaling 3.5 years related to delays in implementing the underlying subprojects. 3.4 Justification of Overall Outcome Rating Rating: Satisfactory 69. With relevance, efficacy and efficiency all rated substantial, the overall outcome rating for TCC5 is satisfactory. The Government views this as a successful project, and, as a result, requested the successor project, TCC6, as well as a Fiscal TA project. 3.5 Overarching Themes, Other Outcomes and Impacts (a) Poverty reduction, gender, and the environment 19

33 70. TCC5 allocated substantial resources to poverty, gender issues, social development and environmental sustainability especially through category B and C subprojects. 29 subprojects (49 percent) were directly or indirectly linked to poverty, gender and social development, of which 9 subprojects (15 percent) were focused on the poorest in poor regions and gender equality, with the remainder related to land policies, environment, health, social protection, and equal opportunities for ethnic minorities. 71. Labor service in poverty-torn Areas of Ningxia Hui Autonomous Regions (B10) contributed vocational training, employment services and social security. In order to facilitate labor migration for rural workers, B10 compiled training textbooks in Arabic for Muslims. These books were officially published and in high demand. The subproject Strategic research of modern agricultural development in Yangling Agriculture Hi-tech Zone, Shaanxi province-d-8, established a land transfer system and management scheme, a modern demonstration zone for modern agriculture technology, and research results which helped set the standard for the entire Shaanxi province. The subproject manager reported that TCC5 was very timely and that without TCC5, it would not have been impossible to find funds for such soft investments. 72. In terms of gender impacts, subproject B07-Reemployment project to support poor and unemployed women workers, the Women s confederation of Gansu province, focused on supporting laid-off female workers to find reemployment opportunities by training for project management. These managers were able to attain higher positions, and learned how to make courseware, and train unemployed workers. Though not entirely attributable to the subproject, in Gansu province alone 600,000 poor women opened their own small businesses. 73. TCC5 also introduced new approaches and produced policy recommendations that were adopted by central and provincial level governments. For example, community driven development was an innovative approach in China in 2006, and was introduced, piloted successfully and later applied in 28 provinces (out of 31) of the country (B01, C05). Among 11 evaluated poverty related subprojects in post-completion evaluation, 9 of them were rated successful or highly successful and two rated as partially successful (A05, A28). (b) Institutional Change/Strengthening 74. TCC5 was heavily oriented toward institutional strengthening. Almost all of the subprojects helped enhance skills and capacity in policy making and implementation and exposed staff to good global practices while focusing on reform bottlenecks. These activities benefited institutions at the central and local government and community levels. Many of the training participants became trainers and trained other professional staff in their own ministries, thereby enhancing the institution s capacity. 75. Before TCC5, subproject beneficiaries were not familiar with the international procurement procedures, quality control and safeguards, and some did not know how to write concept notes or TORs. PMOs at all levels struggled with the structured nature of the Bank s fiduciary processes and the monitoring and supervision of implementation processes. At times, staff complained about extra burdens of preparing documents in English and occasional implementation delays. After many rounds of training workshops and communications, eventually the PMO staff developed a good grasp of these processes and also appreciated the rigorous processes for sound project management. During the ICR workshop held in June 2015, PMO officials reported the usefulness of establishing clear objectives, outcome indicators, and intermediate outcome indicators to measure results at the subproject level. 20

34 (c) Other Unintended Outcomes and Impacts (positive or negative) 76. One important impact of TCC5 was its importance to the relationship between GoC and the Bank. The Bank was responsive to the client s preferences, and the project was successful in achieving impacts given the funded amounts. 3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops 77. A beneficiary Survey was conducted during a preliminary ICR fact-finding mission from June 16-July 15, The objective was to collect information on the benefits and special features of the TCC5, focusing on issues of relevance, efficacy and efficiency, flexibility, and timeliness (See Annex 5 for details). All of the 14 responding subprojects rated either 4 or 5 (5 being the highest score) for relevance, and efficacy, and efficiency. Among these three aspects, relevance was rated the highest, with 85.7 percent rated 5; on efficacy, 71.4 percent rated 5; on efficiency, 50 percent rated 5. To the question on whether the subproject has long term impact, all of the 14 responding subprojects answered yes percent rated the long-term impact at the highest level, 5, 35.7 percent rated it 4. To the question on timeliness of the application process, majority (78.5 percent) of the respondents answered favorably by selecting Just-in-time. These client responses are consistent with the ICR s outcome assessments in Section 3 above. See Annexes 5 and 6 for details Assessment of Risk to Development Outcome Rating: Low 79. In a project of this nature with many diverse, independent activities, the question of sustainability arises. A number of factors reduce the risk to development outcome. Sustainability is most evident in the fact that the many studies and consulting work funded under the project led to actual policies (115) that were implemented, a number of which have been operational for several years. The alignment with the ongoing GoC reform and development agenda helps ensure that project outputs are part of the new way of doing business. Further evidence of reduced risk are the examples of scaling up which were presented in Section 3.2. The strong GoC ownership of the achievements of TCC5, attributable to the project s demand driven nature, also supports sustainability. The substantial built capacity and other institutional support will also help sustain the project s achievements. All of these factors along with the follow on TCC6, lead to a low rating for risk to development outcome. 5. Assessment of Bank and Borrower Performance 5.1 Bank Performance (a) Bank Performance in Ensuring Quality at Entry Rating: Moderately Satisfactory 80. After more than 20 years of technical cooperation projects with the Bank, the GoC expressed a strong preference for a highly flexible, just-in-time project that, most importantly, included substantial technical value added from the Bank. The Bank agreed with these requests, and worked with the GoC to reduce risk and ensure efficiency and sustainability of the approach. The design of the Project provided a platform to tap international intellectual resources to analyze 21

35 and resolve issues and challenges facing China and support an incremental reform agenda. The Bank team also incorporated lessons learned from previous TCC projects. The result was an ambitious project with many activities that met the client s need to address various reform bottlenecks. A significant shortcoming was the lack of well-defined PDO indicators that could be effectively monitored and could have facilitated overall assessment of the project. This shortcoming is underscored by the fact that the PAD itself had recognized the need for improved M&E. Another shortcoming was that, with the significantly higher requirement for Bank technical expertise, a higher than standard supervision budget should have been part of the project s concept. The lack of additional budget posed a strain on the Bank team as it tried to meet its obligation to meet the Borrower s technical needs for the large number of subprojects. (b) Quality of Supervision Rating: Moderately Satisfactory 81. The Bank contributed substantial value added through technical and management support to the four main subproject elements: Concept, Proposal, TOR and Deliverable. Because of the long time frame for the project, the TTL changed three times, though, according to ISRs and interviews with the PMO, management continuity was not disrupted. One important factor in effective supervision was that the task team was always led by TTLs who spoke both English and Chinese, which facilitated communication with the counterparts. The Bank task team helped provide access to relevant international experience. The Bank task team supervision also provided timely assistance and guidance to resolve subproject implementation issues including procurement and financial management problems. ISRs provided regular updates on the progress of individual subprojects. 82. There were some shortcomings in the Bank s performance in providing technical input in specific areas owing mainly to difficulties in covering such a broad range of subproject activities. There were also unseized opportunities to revise the results framework. The final ISR did summarize outputs and many outcomes of the 59 subprojects by component, but did not relate them individually to the PDO. The ISR satisfactory ratings for implementation and PDO throughout the project life may also have been somewhat generous given the slow disbursements for portions of the project life. (c) Justification of Rating for Overall Bank Performance Rating: Moderately Satisfactory 83. At the ICR workshop in June 2015, the PMO Director stated, TCC5 is the right form of China-Bank knowledge cooperation and the Bank team contributed significantly to the success,, TTLs guiding the design at the subproject level, selecting the right topics, guiding the project teams step by step, and making sure the World Bank s knowledge input being incorporated in subprojects. This sentiment captures the Government-wide positive impression of this project and confirms that the Bank s value added was key in many of the subprojects. The main shortcomings were the tight supervision budget and the inadequate measurement of outcomes at the umbrella project level (though the project design ensured M&E at the subproject level). With the ratings at preparation and supervision moderately satisfactory, the overall Bank performance rating is moderately satisfactory. 5.2 Borrower Performance (a) Government Performance Rating: Satisfactory 22

36 84. TCC5 was unusual in that the GoC generally did not borrow hard loans for soft Technical Assistance projects. This was an early signal of the special value that the GoC placed on the Bank as provider of technical inputs. The GoC worked closely with the Bank to ensure that the project aligned well with the national reform agenda. GoC counterpart funding accounted for one quarter of total project costs and was mostly in the form of salaries and use of premises for training. It was a major challenge for the International Department of the MoF to manage such a wide array of activities, providing overall financial oversight and management for the 59 subprojects that were implemented by 20 central agencies with 30 departments and 13 provincial agencies with 17 provincial departments. The PMO managed to carry out its responsibilities satisfactorily despite being understaffed and not experienced in dealing with the complexity of TCC5 activities. This complexity grew as more and more subprojects came on board. 85. The MoF disseminated the project operational manual and contributed to the guidance for subproject implementation and standardized project management. The MoF PMO provided good support to Bank s project supervision/icr missions, and with Bank assistance, provided regular project management training that included procurement and financial management for SIAs (after subprojects were approved). The MoF reviewed semi-annual subproject reports and disseminated project achievements. Finally, the GoC performance led to the adoption of 115 policies, which supports a satisfactory rating. (b) Implementing Agency or Agencies Performance Rating: Satisfactory 86. The MoF and Bank task teams worked closely with 47 different national and provincial government departments. Forty-seven of the 59 sub-projects fully achieved their objectives, while seven mostly fulfilled their objectives and only five fell short of their objectives, which is a satisfactory performance. In a few cases there was an inadequate number of staff in SIAs, which hindered the agencies ability to carry out implementation on schedule. However, despite being taxed in preparing bidding documents, awarding contracts, contract management etc., these agencies were able to learn and apply the rules and procedures, and ensure subproject implementation. Since almost all of these agencies were new to Bank s processes, it did take additional time to complete the processes, but it demonstrated that the SIAs had successfully built implementation capacity. (c) Justification of Rating for Overall Borrower Performance Rating: Satisfactory 87. The Borrower responded well to the availability of TCC5 funds and made good use of the training provided by the project through increased job responsibility and dissemination of knowledge amongst colleagues. There was good project management with a high level of responsiveness and commitment from the MoF. Most importantly agencies were able to propose and implement a wide range of high, positive impact activities. With the GoC and IAs performance rated satisfactory, the overall rating for Borrower performance is satisfactory. 6. Lessons Learned 88. Lesson 1: Lending TA can be an effective vehicle for the Bank to deliver many wideranging TA activities and meet a client s needs for flexibility and just-in-time program support. The project design considered a number of ways to meet client needs, including AAA and Reimbursable Advisory Services (RAS), but with the large number of continuously emerging 23

37 knowledge and capacity needs, these instruments were not efficient alternatives. Neither AAA nor RAS could provide the combination of training and analytical work, nor would it have been manageable to initiate 59 separate RAS/AAA interventions. 89. Lesson 2: Assessing a project with many different activities requires not only a strong monitoring effort at the subproject level, but also a strategic framework to tie the many diverse outcomes together. The Bank should have used the opportunity of a restructuring to develop such a strategic framework. The ICR supplemented the project M&E to assess the overall impact of the umbrella project by tying subproject outcomes (as reported in the self-assessments) to specific elements of the PDO. It is better, however, to apply a strategic framework all along the way to benefit implementation. This approach helps create a broad sense of project outcomes and provides useful information on the effectiveness of this subproject-driven approach. 90. Lesson 3: For a demand-driven project that provides wide-ranging program support that requires a large amount of technical support from the Bank, it is important that the supervision budget adequately fund that support. With this type of project, the task team needs to have access to a comprehensive expert database across multiple disciplines in the Bank s system to offer client first rate international knowledge and practice. Moreover, lending TA supervision budgets need to be sufficient to cover the intensive technical inputs expected from the Bank. The total supervision budget for the almost 9-year project was less than US$1 million (Bank budget) which was too lean and made it difficult at times to access sufficient technical inputs. 91. Lesson 4: It is also important on the client side to ensure that the PMO and the SIAs have input adequate resources to resolve implementation issues and improve administrative efficiency. In some cases the availability of resources to SIAs and the PMO were constrained by the GoC s administrative system during different stages of the Project implementation, which caused delays in subproject implementation. 92. Lesson 5: A multi sector umbrella project such as TCC5 needs to have a substantial technical committee that can respond in a timely fashion to a wide range of technical support needs. TCC5 would have benefited from such support on the technical side, which might have avoided some delays on the Bank side. During the ICR mission, the Borrower requested such a technical committee for TCC Lesson 6: For projects incorporating activities that require repayment, project teams will need to consider the risk of under-disbursement and possible reallocation of project funds. Repayable funds are not as attractive to (provincial) agencies as are funds that do not have to be repaid. Funds for TCC5 Category D (100 percent repayment by provincial governments) subprojects were underutilized and project funds were reallocated to Category A which did not require any repayment. 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners (a) Borrower/implementing agencies 94. The Bank agrees with the fundamental findings by the GoC in its ICR, both the positive and the critique of the results framework (para 16 of the Borrower ICR), which the Bank ICR has covered in detail. In addition, the GoC ICR makes the following observation (para 15): Meanwhile, sub-project designs failed to cover such aspects as how to address China's changing role in the world economic landscape -- in particular, how shall China adapt to the international 24

38 economic order and how shall China play an active role in the transformation of international economic order. Such contents shall be taken account of during the design of future TA projects. Furthermore, sub-projects were mainly proposed and organized in the bottom up manner. The GoC ICR also suggests that To ensure that the TA projects are further aligned to the economic reform tendencies and needs of the central government, it is necessary to release a project guide periodically providing top-down guidance over sub-project identification and allowing better planning for TA projects and the use of funds. 95. The Bank contends that a number of highly important subprojects were indeed geared to the theme of China s adaptation to the international economic order, including the VAT law, conversion to accrual accounting, improved debt statistics, biodiversity and ecological management, and many others, which help China participate more effectively in the international economic order. TCC5 was more of a bottom-up project owing to its demand-driven approach and it is probable that the demand-driven TCC5 addressed priorities that might not otherwise have been addressed. The follow-up project, TCC6 will further address the GoC role in the international economic order, as the GoC ICR acknowledges. (b) Cofinanciers 96. The Bank received comments on a draft ICR from DFID with which the Bank fundamentally agrees. Responding to the comment on evidence of project support to the GoC agenda, the ICR relies not only on application of selection criteria, but also on specific measures supported by the subprojects relating to the GoC agenda. Annex 2 notes cases of at least 20 subprojects supporting specific items in the GoC reform agenda. To confirm one question raised in the DFID comments, the subprojects in Annex 2-B that have designated GBP amounts are indeed the DFID-financed subprojects. (c) Other partners and stakeholders (e.g. NGOs/private sector/civil society) 25

39 Annex 1. Project Costs and Financing (a) Project Cost by Component (in USD Million equivalent) IBRD and DFID Actual/Latest Appraisal Estimate Percentage of Components Estimate (USD (USD millions) Appraisal millions) 1. Reforming the civil service and public finance 2. Improving service delivery and social protection Improving management of land and natural resources Building public and market institutions Improving regional and sectorial development strategy Strengthening Institutional Capacity Total Baseline Cost Physical Contingencies Price Contingencies Total Project Costs Front-end fee PPF Front-end fee IBRD Total Financing Required (b) Financing Source of Funds Type of Cofinancing Appraisal Estimate (USD million) Actual/Latest Estimate (USD million) Borrower* (10.00) (10.00) 100 IBRD DFID Total Percentage of Appraisal *Borrower funding is in kind (staff time and office space) Note that DFID percentage of appraisal slightly different from text table 1 because of change in GBP-US$ conversion over time. 26

40 A: Capacity Building Program Annex 2. Outputs by Component I II III Types of training Overseas study for civil servants at the national and subnational levels, including i) visiting scholars, scholarships and second-ment (25 people only, more than 1 month to up to 1 year ); ii) Short term visits and trainings ( 597 people, within 1 month) Domestic training for enhancing civil servants capacity in policy making and implementation at the national and subnational levels Training for enhancing skills of the vulnerable people like poor women, migrant workers, poor minorities Numbers of Subprojects and people total cost 622 Covering 45 subprojects with the total expenditures of US$4.03 million. 4,463 Covering 52 subprojects with estimated expenditures US$2.28 million. 4,704 Covering 8 subprojects with estimated expenditures of US$0.82 million. 27

41 Annex 2. Outputs by Component-continued B: Subproject Results by Component Annex 2-B provides the results of each subproject for the six project components. Note the numbering system for each subproject: A- D refers to the type of financing/repayment used for the subproject; the first number is the order of subproject financed in that category and the second number is the year in which the subproject was approved. Thus, A07-06 is the seventh subproject in category A (central government beneficiary, funded by IBRD with no repayment by the beneficiary agency), and approved in FY06. The elements of the PDO to which the results contributed are in bold in the Results column. Component 1: Reforming the civil service and public finance 14 Subprojects 12 subprojects achieved intended outcomes 2 likely to achieve intended outcomes Subproject A06-06 Improving Law and Regulations in Government Procurement MoF A07-06 Management Mechanism for Government Public Assets MoF Before Project China enacted Government Procurement Law in 2002, but there were no administrative regulations to support law enforcement. Actual Cost US$ Date Compl. 115,585 6/30/08 Capacity in managing public assets in administrative departments was weak. 262,759 8/31/09 Result Draft Enforcement Regulations on Government Procurement Law were submitted to the Office of Legislative Affairs of the State Council at the completion of the subproject. Update Following years of consultations and revisions, the State Council s Decree No. 658 <2015> was formally issued in January 2015, promulgating the government procurement enforcement regulations. (Support to GoC reform agenda and high adoption rate of reform policies) The study contributed to MOF s efforts in making policies and regulations associated with state public assets management in government agency and public service unit, as a result, a number of administrative measures were issued, including MOF Directive on Interim Measures of revenues in disposal and leasing of stateowned property in the Central Administrative Department MOF document No. 400 <2009>]. (High adoption rate of reform 28

42 A08-07 Statistics, Monitoring and early warning of Government Sovereign Borrowing MoF A11-07 VAT Reform and Legislation Budget Committee, National People s Congress Lack of a system to keep track of and monitor sovereign borrowing at the national and subnational levels. VAT, being the largest tax revenue source, was slated for reform in the 11 th Five Year Plan period. A big limitation was that VAT levy was governed by administrative directives (amended in 2009), with no supporting law. 216,605 12/31/10 299,229 1/31/10 policies, and improved soundness of reforms through a management information system for state-owned assets of administrative institutions, which is now applied in both central departments and provincial governments) The Study contributed to a MOF Directive [MOF documents No. 175 <2008> and No. 10 <2011>] Interim Measures of Financial Management for IFI loans and Grants The Directive was issued and an MIS for Sovereign Debt Monitoring and Tracking was put into operation by all provincial finance departments. (Support to GoC Agenda, high adoption rate of reforms and improved soundness of reforms.) Recommendations on VAT reform and Legislative proposal for VAT Law as well as a Draft of the legislative proposal on a VAT law were accepted by the 11the National People s Congress on VAT law was included in the Legislation 5 Year Program in the National People s Congress in Update: In the 12 th National People s Congress ( ), promulgation of VAT Law was upgraded as priority in NPC s legislative agenda. VAT revenue increased 37% since the subproject was completed (China Statistical Yearbook 2014). (Support to GoC agenda, high adoption rate of reforms A11 is highlighted in ICR main text). A14-08 Strategic Framework for Government Accounting Reform and Management MoF Only an annual budget accounting system had been in practice for the previous several decades. This study aimed to prepare and test the feasibility convert the cashbased system to accrualbased accounting. 596,910 5/31/11 The Study s Policy Recommendations were submitted to the Premier in Guidelines prepared for rolling out accrual accounting-based financial reports -- The trial implementation began in Study resulted in: MOF Circular on Accounting system for hospital [MOF document No. 27 <2010>] and Revisions on Accounting System for Administrative Departments [MOF document No. 218 <2013>] 29

43 A21-10 Building Improved Secondary Government Bond Market MoF A24-11 Managing Medium Term Budget MoF A26-11 Building and Improving GIS- Secondary market was hindered by: i) lack of coordinated supervision by various institutions, ii) low bond market liquidity, iii) deficiencies in rules on bond trading, and iv) inactive institutional investors. China did not implement a medium term budget, nor was there systematic study on medium term budget. 234,265 6/30/13 248,543 12/31/13 GIS technology was initially used in the Second National Economic Census in 2008, 280,089 12/31/13 Update: In 2014 State Council endorsed MOF s reform program on accrual accounting-based financial report resulting in State Council circular on endorsement of MOF s reform program on accrual accounting-based financial report. [State Council s Document No. 63<2014>] (Support to GoC agenda A14 is highlighted in ICR main text). The funded study filled in knowledge gaps in this field, the recommendations informed MOF leadership of further reform of government debt management regulations that was set as priorities in the 12 th Five Year plan, such as developing bond yield curve to set benchmark for interest rate liberalization in financial sector reform. Associated government policies: A circular on pilot of when-issued trading of bond issuance jointly issued by MOF, People s Bank of China and China Securities Regulatory Commission [MOF Treasury Department Document No. 28 <2013>] Joint communique by MOF and People s Bank of China on introducing market making system in new issuance of bond within a given issuance period [ Joint PBOC and MOF Document No. 6 <2011>] (Support to the GoC agenda and High adoption of reform policies) The study provided valuable input for MoF s policy documents that were being prepared for the minister on implementing medium term fiscal planning and managing a three-year rolling budget plan. Update: In January 2015, the State Council issued opinions on carrying out medium term fiscal planning, State Council Document No. 3 <2015> (Improved soundness of reforms through better budget planning) GIS technology was widely used in the Third National Economic Census, especially the study s input on using modern information technology such as web mapping and portable device for data 30

44 based statistical system Census Center, National Bureau of Statistics A31-14 Quantitative Analysis on Government Debt Management Strategy MoF A32-14 Governance for Gov t Admin. Expenditures and Enhancement of Instit. Regulations MoF A33-14 Building Information Sharing Platform to enhance Institution s capacity in auditing foreign but the system and technology needed to be further improved and applied in the Third National Economic Census. Deepening fiscal and tax reform in the 12 th Five Year Plan period by developing a medium and long-term debt management strategy, a GoC reform priority. In the context of open and transparent budgetary system and public finance system, enhanced governance to reform government administrative expenditures is pressing task. Efficiency of auditing work in foreign loans and aid funds has yet to be improved, capacity and ability of local auditors in auditing foreign loans operations needed to be strengthened. 211,722 3/31/15 214,430 5/30/15 267,130 4/30/15 collection was reflected in the State Council s Circular on the Third National Economic Census in 2013, State Council Document No. 60 <2012>. Developed two basic functional software of GSIS system applying new technology including electronic census zoning and PDA data collection, representing a major innovation in collecting and utilizing economic information. Trained professionals from national and provincial bureau of statistics in GSIS. (Improved soundness of reforms through better technology, Capacity building) The direct outcome of the study was MOF s first public announcement (November 2014) of China s bond yield curve in the given period. The curve was posted on the homepage of MOF s website, on which MOF s leadership made feedback and committed government s further efforts as the next step to develop and apply quantitative analytical tools in issuance of government debt.(high adoption of reform policies through direct application of study, Improved soundness of reforms through better analytics) Subproject report well received by MOF leadership; policy suggestions adopted in MOF document No.1 <2015>. Some recommendations were used and reflected recently in MOF s updated administrative measures and Directives on expenditures. (Adoption of reform and development policies). Note: Objectives of A32 were partly achieved. Information platform developed is to be put into operation and used by auditors at both the central audit office and the provincial audit offices to improve efficiency of auditing work and strengthen capacity through online learning and training of auditing operations 100 auditors received training in foreign fund auditing. (Capacity building) Note: Objectives of A32 were partly achieved. 31

45 loans and foreign aid funds National Audit Office D03-08 Enhancing Management of Earmarked Fiscal fund in Guangdong Province Department Finance, Guangdong Province D04-08 Supervision mechanism that effectively Manages PSUs in Guangdong Provincial Staffing Department, Guangdong Province D05-09 Performance Evaluation of work There were Interim Provisions on managing earmarked funds in Guangdong Province. But there was a lack of institutional regulations to tackle various issues that had arisen from appropriating, managing, and assessing of earmarked fund. These issues had adversely affected fairness in the Funds allocation and efficacy. Public Service Units (PSU) are an integral part of public service delivery in China, but the supervision mechanism is inadequate. Guangdong was selected as pilot to carry out PSU reform in China. 95,565 7/31/10 222,095 12/31/10 In the Department of Ocean and Fishery of Hainan Province, there was no 395,796 5/31/12 The study contributed to the revisions of Interim Provisions on managing earmarked fiscal fund in Guangdong. The draft of the revised Interim Provisions on managing earmarked fiscal fund in Guangdong was used and finalized by the provincial budget department. Note: Regulations on Managing Earmarked fiscal fund in Guangdong Province was issued by the Province. (Guangdong Provincial Document No. 125 <2013>. (high adoption of reform policies) The study provided important input for PSU reform in Guangdong. Recommendations were used in Guangdong Province Document No. 6 <2010>, No.48 <2012> as well as Provincial Commission Office for Public Sector Reform document No.40 <2009>, No.41 <2010>, No.100 <2010>, No.193 <2010>, No.16 <2011>, No.21 <2012>, No.168 <2012>, No.288 <2012>, covering pilot programs of corporate governance structure, real-name system for institutional staffing, total amount control of public service units and government purchase of public services. (High adoption of reform policies) Introduced the ISO 9000 quality management system for performance evaluation; designed quality control policies according to ISO 9001:2008 quality management system, including

46 and staff in the Department of Ocean and Fishery of Hainan Province Department Ocean and Fishery of Hainan Province performance evaluation architecture and tools to assess department s work program and measure achievement of public service delivery as well as evaluate staff performance. related regulations, 17 Procedure Documents, 182 Task Instructions and 64 Quality Records; trained 16 internal auditors through ISO 9001:2008 quality management standard training programs, meeting. The ISO quality management system was applied in the department day to day management work (supported by the counterpart funds). 128 staff received training of the Department s mobilization of performance evaluation. (Capacity building at the subnational level) Component 2: Improving service delivery and social protection 16 Subprojects 11 subprojects achieved intended outcomes 1 likely to achieve intended outcome 4 partly achieved intended outcomes Subprojec t A03-06 Building Occupation al injury Insurance System Ministry of Labor and Social Security (MOLSS) Before Project State Council s Regulations on work-related injury was formally implemented in However, the regulations needed to be revised. Building Occupational Injury Insurance System was the goal to achieve in reforming work-related injury insurance in the 11 th Five Year Plan period. A05-06 There was no systematic diagnosis and methodology in Actual Cost US$ Date Compl. 351,253 2/28/09 Results Research results were adopted in Standards for the Diagnosis and Treatment of Work-Related Injuries, Revision of the Regulation on Work- Related Injury Insurance (State Council s Decree No. 586, promulgated in December, 2010) and Provisional guidelines for services on work-related injury rehabilitation was implemented by MOLSS, MOLSS Document No.31 <2008>. Supported training activities in the pilot cities as well as in the Ministry, including program design and professional training to work injury insurance managers. The number of beneficiaries from worker injury insurance increased 32% during , to 1.95 million. (high adoption of reform policies and building capacity at the national and sub-national levels) Drafted guidelines jointly by MOF and the Ministry of Labor and Social Security (MOLSS) to carry out pilots of performance evaluation of fiscal 33

47 Performan ce Eval. of Fiscal Expenditur e on Employme nt MoF and MOLSS A23-10 Measures to prevent and control noncommunica ble diseases (NCD) assessing performance of fiscal expenditure supporting employment. Initiated against background of deepening health reform by the party and the state council, strengthening prevention and control of NCD has been a priority in the public health reform agenda. 214,560 6/30/10 earmarked funds for promoting employment was submitted to leadership. Designed an evaluation system including 11 core indicators; collected data from 27 cities in 9 provinces. 196,595 3/31/13 Update: Guidelines on carrying out pilots of performance evaluation of fiscal earmarked funds in support of employment were circulated jointly by MOF and MOLSS in April, Joint MOF MOLSS Document No.17 <2012> (Improved soundness of policy reforms-through improved evaluations of fiscal expenditures and high adoption rate of reform policies) Policy Input reflected in China Prevention and control of Noncommunicable disease Plan ( ), a national work plan for chronic disease prevention and control. This plan was aligned with deepen public health system reform in GOC agenda and was endorsed by 15 agencies of the State Council. CDC, Ministry of Health Document No. 34 <2012> (High adoption rate of policies and Support to GoC reform agenda) MoH A27-12 Assessing Policies of pilots of Urban and Rural Pension Reform Schemes Urban and rural pension scheme was piloted all over China in 2009, but there was no assessment of effectiveness of the policy having been implemented. It was necessary to carry out the assessment to enhance policy and move the reform forward. 227,000 12/31/13 Policy recommendations contributed to the State Council s document Unified Urban and Rural Residents basic pension schemes State Council Document No.8 <2014>. Collected and analyzed 6000 questionnaire samples from 6 provinces on the implementation effect of new pension scheme. By 2013, million people were covered under the basic pension scheme for rural and urban residents, more than triple the number since (Support to GoC reform agenda, Improved soundness of reforms, high adoption of reforms) Highlighted in ICR main text 34

48 MHRSS A28-12 Conservati on & developme nt of Minority Villages Demonstr. Proj. The country set up a special funds to support conservation and development of minority villages, but capacity in developing and executing the development plan at village level was weak. 269,175 7/31/14 Village level development planning and a manual based on communitydriven development mode for the selected minority villages were submitted to the leadership of the State Ethnic Affairs Commission. 57 persons received trainer s training 954 persons received training. (Capacity Building at the subnational level) State Ethnic Affairs Comm. A29-12 Reformin g Practice and Services Modes for General Practitione rs (GPs) in the Selected Pilot Cities Establishment of general practitioner system was one of important and urgent tasks in China s health reform agenda. In such context, the State Council s health reform office needed field investigation and assessment on GP contract-based services, service scope and fee scale and carry out supervision mission in the selected pilot cities. 289,203 12/31/14 Conducted general practitioner practice model and service model reform pilots in 10 selected cities; report based on the experience from pilot programs submitted to State Council with recommendations for the next steps of GP reform. State Council Health Reform Office Document No. 5 <2014> (Support to GoC reform agenda) National Health and Family 35

49 Planning Commissi on A30-12 Aged Care through Socialized Service Developm ent Research Center of the State Council B01-06 Mode and mechanism to Manage Rural Commun. Dev. Fund and Pilots in selected Provinces State Council Leading Group Office of Poverty Alleviation Drawing experiences from practices of other countries, identifying and analyzing ways and approaches of aged care that are suitable for application in China s circumstance. Issues that had affected policy adjustment in management and utilization of community development fund needed to be addressed and solved. 287,861 3/31/15 GBP 185,536 9/30/09 Five countries case reports and policy recommendations for suitable aged care services in China to be submitted to senior leadership for information and reference in policy making. No associated policy measure at this time. (Potential improved soundness of reforms through improved knowledge basis for policy). Established pilot CDFs in 145 villages; 66% of the villagers in pilot areas used mutual funds--valuable experience in local ownership of poverty alleviation activities. A report on findings of the pilots and policy recommendations was submitted to the chairman for State Council Leading Group Office of Poverty Alleviation and Development receiving positive feedback. The Leading Group Office of Poverty Alleviation and Development and the MoF jointly circulated Guidance on expanding pilots of managing and operating Rural Community Development Fund [MOF and LGOP Document No. 103 <2009>] 410 persons received training under the subproject. Trained villagers in pilot areas in the management of community resources and affairs; trained 150 staff of local poverty alleviation offices from 28 provinces about the experience gained from subproject; Developed software Operation System of Mutual Funds in Poor Villages on the statistical analysis of relevant data; system adopted in Sichuan Province and part of other three provinces. (Capacity building at subnational level and Support to the GoC agenda). 36

50 and Dev., MoF B02-06 Quality Mgmt. of AIDS Treatment in Rural Areas Henan Province In the effort to fight aids, the provincial government encountered problems in administering and managing quality of medical treatment for Aids, such as a lack of adequate standards for medical quality control and an evaluation system. GBP 149,733 11/30/08 A set of standards and guidelines in managing quality of AIDS Treatment were adopted and implemented by the Henan Province health bureau. 100 persons received policy training. There was also training for over 2,000 administrators and medical workers on city level and over 5,000 persons at the county-level in AIDS treatment. (Building capacity at the subnational level, and high adoption of reform and development policies) Health Bureau, Henan province B03-06 Qinghai Pro-Poor Developme nt Strategy Finance Bureau, Qinghai Province B05-06 Social Protection for Rural and Urban Qinghai province is one of the least developed provinces in China having 1.2 million poor people, o/which 0.6 million living under absolute poverty. The provincial leadership needed to develop a medium and long term poverty reduction strategy and program to achieve the goal of prosperity shared by provincial people Vulnerable groups was large with 0.9 million living in absolute poverty, building social protection system remained very challenging. GBP 290,123 6/30/09 GBP 308,788 6/30/09 The study contributed to the formulation of Qinghai Provincial 12th Five Year Plan, which was adopted by provincial people s congress. Provincial 12 th five year plan Document <2011>. (High adoption of reform and development policies) The study contributed to formulation of provincial fiscal policies for enhancing public services and the adoption of 40 provincial public finance policies in 2007, 60 public finance policies in 2008 and 60 public finance policies in 2009 targeting disadvantaged groups (Provincial Document 37

51 Vulnerable Groups in Jiangxi Province No.10 <2007>, No.4 <2008>, No.9 <2009>) with a total budget of billion. (High adoption of reform and development policies) Departme nt of Finance, Jiangxi Province B07-07 Supporting poor and laid off women for reemploym ent Women's Federation, Gansu Province B08-07 Protecting Migrant workers rights and interests Unemployed women, being special vulnerable group, accounted for 51% of the total registered unemployed population in Gansu. As of end 2006, there was million rural-urban migrants in Anhui province. However, the lack of a basic social protection and GBP 172,709 3/30/10 GBP 136,399 8/31/ women received skill trainings with 83%.successful reemployment 307 women received entrepreneurship training Training materials were used by the trained women with 89% satisfaction A set of government circulars in supporting women s reemployment and entrepreneurship were issued by the provincial government. Provincial circular on management of guaranteed small loans for women [Gansu Finance department document No.6<2010> Policy suggestions adopted also in Provincial Department of Finance documents No.72 <2009>, No.37 <2010>, Provincial Department of Human Resource and Social Security document No.104 <2010> and Provincial Women's Confederation document No.24 <2009>, No.97 <2009> on women micro-credit Provided RMB 1760 million of micro-credit, helping more than 250,000 women. (High adoption of reform policies and capacity building at subnational level) Policies for supporting migrant workers training and promoting employment were issued by the provincial government. Research results were adopted in Provincial Circulars No.7<2009>, No. 44<2010>, No.52<2010> 38

52 Departme nt of Human Resources & Social Security, Anhui Province protection of rights and interests for migrant workers hindered the Provincial government s efforts to promote rural migrants employment and reemployment. 260 persons received training on reemployment and migrant worker rights protection Provincial Department of Human Resource and Social Security document No.26 <2010> and Provincial Department of Education document No.8 <2010> supporting migrant workers rights protection. (High adoption of reform policies) B09-08 Economic Growth and Proagriculture Fiscal Policies in Shanxi Province Departme nt Of Finance, Shanxi Province B10-09 Developing Labor Services in poor areas of Ningxia Hui Provincial budget has invested heavily in poverty reduction over the past decade with remarkable achievement, but poverty and inequality still remained severe challenge in the province, and there has been a lack of study on the effectiveness and efficiency of fiscal spending on poverty reduction and rural development As of end 2007, there were 0.77 million migrant workers with no skills, there was a lack of policy and regulations for vocational training, GBP 346,073 3/31/11 GBP 243,421 2/28/11 A proposal for reforming provincial fiscal expenditure for poverty reduction was submitted to the provincial leadership. Little evidence of results from this proposal. Policy input for provincial 12 th five year plan for human development and social protection [Provincial 12 th five year plan <2011>] Guidelines in enhancing vocational training and promoting employment [Provincial circular on enhancing vocational training to promote employment [provincial government document No.77<2011> and No.89 <2011> 221 persons received skill training 39

53 Autonomou s Region Departme nt of Labor and Social Security, Ningxia Hui Autonomo us Region D12-13 Building General Practitione r(gp) training system in Hainan There was no unified GP training program in Hainan. 170,497 3/31/15 Arabic language training materials were widely used in the language training course, notably there has been 7000 graduated trainees being engaged in Arabic translation and commercial services in coastal cities. (High adoption of reform and development policies and capacity building at subnational level) Highlighted in ICR main text Provincial circular on GP Implementation program in Hainan was issued. [Provincial government Document No.65 <2014>] and provincial Department of Health document No.59 <2014>. (High adoption of reform policies) Departme nt of Health, Hainan Province Component 3: Building public and market institutions 12 Subprojects 8 subprojects achieved intended outcomes 2 likely to achieve intended outcome 1 partly achieved 1 failed 40

54 Subproject A02-06 Urban community services development Plan in the period of the 11th five year plan National Reform and Development Commission A04-06 Strengthening Capacity in design of program -- optimizing implementation the special five year plan for minority areas in the period of the 11 th five year plan Before Project The Community Service system is underdeveloped, and key functions of this system were not clearly defined. Capacity in developing five year plan and implementing the plan in minority areas is weak. Actual Cost US$ Date Compl. 299,390 3/31/09 299,098 6/30/09 Result Policy input for the first thematic five year plan for community Service system. [Joint NDRC and the Ministry of Civil Affairs Document No.975 <2007>] which was issue as the "Eleventh Five- Year" Community Service System Development Plan (the first specialized plan in community development area in China) Guidelines in piloting Harmonious Community. [Ministry of Civil Affairs Document No.142<2008>] Guidelines in promoting community informatization was issued jointly by the State Council Information Office and the ministry of civil affairs. Conducted outcome evaluation report of plan implementation. In addition, 600 million RMB was allocated from the central government along with a matching fund of 1.45 trillion from local governments allocated for plan implementation. (Support to GOC, improved soundness of reforms and high adoption of reform policies) Community driven development approach was adopted by SEAC. [SEAC Document No.53 <2008>] Community driven development approach was adopted by Xinjiang Uygur Autonomous region. [Provincial Document No. 115 <2009>] 500 people in 60 villages received training in Community driven development and 90 percent of adult villagers participated in project activities. (building capacity at the national and sub-national levels, supporting the GOC reform and development agenda, high adoption of reform and development policies) 41

55 State Ethnic Affairs Commission (SEAC) A09-07 Remuneration disparity of civil servant in different regions Ministry of Personnel A10-07 Reform of Power transmission and distribution State Electricity Regulatory Commission A13-08 Statistical Standards and Statistical Monitoring of External Debt State Administration of Foreign Exchange (SAFE) China enacted a Civil Servant Law in In 2007 a reform of civil servant salary was carried out, but did not solve the regional gap in civil servant salary. Needed to set up an adjustment mechanism. Absence of workable measures to implement the reform of separation of transmission and distribution in the power sector in order to give large role to market mechanisms. A review in 2006 according to an IMF framework found two key shortcomings of the current statistical system for external debt: 1) the coverage of the external debt statistics is limited; 2) data are not sufficient for comprehensive risk measurement. 330,000 8/31/09 357,834 9/30/09 283,798 10/31/11 Feedback on Policy recommendations in mechanism to determine civil servant salary adjustment was well received by two ministers. Collected and analyzed data from 56 sample cities of 8 provinces in eastern, middle and western areas, exploring the determinants of civil servant salary level and adjustment mechanism Software for a salary adjustment model was developed providing information and data support for civil servant salary management. (Support to the GOC agenda, improved soundness of reformspartial achievement) Recommendations in reforming rural power were adopted by No.1 Document of the central government in 2010 [No. 1 Central Document 2010] Recommendations to carry out pilot in the reform of power transmission and distribution were submitted to leadership. (High adoption of reform and development policies) The report on Coverage of external debt statistics and short-term foreign debt risk, recommending inclusion of RMB debt into external debt statistics was submitted to the State Council Defined and endorsed principles for managing and statistics of RMB external debt in SAFE document No.38 <2011> Statistical training for SAFE s 36 provincial branches and banks head office on the new coverage (Support to GoC agenda, soundness of reforms, building capacity at the national and sub-national levels) Highlighted in ICR main text. 42

56 A18-09 Policies for sound development of Private nonenterprise units and capacity building National Development and Reform Commission A19-09 Indicators for Financial Statistics and Statistical Standardization People s Bank of China (PBC) A22-10 Procedural regulations on promoting economic system reform There was no policy system to promote development of private non-enterprise units such as policies and regulations, administrative system and supporting policies Lack of institutions for division of responsibility, coordination and statistics sharing among PBC, CBRC, CSRC, CIRC and NBS for financial statistics, and lack of standardization for financial statistics. No procedural regulations on economic system reform in China 294,831 12/31/12 242,049 12/31/11 209,812 12/31/12 Policy guidelines for encouraging creating private non-enterprise units and promoting private social undertakings. [Ministry of Civil Affairs Document No. 76 <2010>] was submitted to the State Council for approval. Draft Guidelines on Government s purchase of services Plan for Social Services system for elderly ( ). State Council Document No.60 <2011> (Support to the GoC agenda and high adoption rate of reform policies) Report on Plan for Financial authorities in coordinating Financial Statistics was submitted to the office of Legislative Affairs of State Council. Guidelines on implementing standardized financial Statistics, providing the statistical system of financial derivatives, was issued by PBC. [PBC circular No.286 <2011>] Issued four financial statistical standards about financial instruments, which are approved by CFSTC as national standards; data collected according to new standards helped improving efficiency and accuracy of monetary policy. Applied the newly-found standards in the information collection in financing and trust service; promoted deposit and lending rates statistics pilot programs in 11 provinces (Improved soundness of reforms, high adoption rate of reform and development policies) Highlighted in ICR main text. Submitted proposals, Regulation on Promoting Economic System Reform and Implementation Measures for Social Stability Risk Assessment for Major Reforms, a major effort for standardizing decision-making, measures and procedures of reform. 43

57 National Development and Reform Commission A34-14 The Function of China Government Procurement Policy in the context of GPA/WTO MoF As China s GPA is supposed to be integrated into global system, policy function of government procurement needs to be reexamined. 278,046 5/31/15 (Support to the GOC reform and development agenda, but not yet adoption of measures) Report submitted to State Council and MOF leadership providing proposals on how to reform Chinese government procurement system to be consistent with international rules. Recommendations adopted in Regulation on the Implementation of Government Procurement Law issued by State Council. Trained 120 personnel in GPA. (Building capacity at the national and sub-national levels, support to GOC reform agenda, high adoption of reform ) D02-07 Perfection of the Juristic Framework and Operation system of Investor Protection fund in china Securities Market China Securities Investor Protection Fund Corporation Limited D10-11 Aquaculture Insurance Study and Pilot Department of Marine and Fishery of Hainan Province and The government had strengthened its efforts in protecting investors in the securities market and an Investors Protection Fund had been established recently. However, related legislation is still missing, and internal governance of the Fund remains an area for further exploration. 57,960 6/30/09 Aquaculture insurance did not exist 881,128 12/30/14 The study was not completed and dropped. Recommendations for a scheme providing financial support and compensation to fisherman in aquaculture insurance, cost sharing by central government, provincial and subnational governments respectively at levels of 50 percent, 20 percent and 10 percent. The plan has been endorsed by the provincial finance bureau and will be submitted to the provincial NPC. (Support to the GoC Agenda, high adoption rate of reform policies) 44

58 Department of Finance D11-12 Weather-Index Insurance for Rubber Production Department of Agriculture, Hainan Province and Department of Finance Insurance to compensate loss caused by Typhoon is not matured, particularly for loss of rubber trees. Hainan provincial government wanted to introduce and develop weather-index insurance product to facilitate risk pooling. 797,542 12/31/14 Technical studies to support weather index insurance were delivered, however, there need follow up studies so as to support carry out trial implementation of weather index insurance in Hainan. (Support to the GoC Agenda, high adoption rate of reform policies and improved soundness of reforms) Component 4: Managing land and natural resources 11 Subprojects 8 subprojects achieved intended outcomes 3 subprojects partly achieved intended outcome Subproject A01-06 Policy on management and utilization of rural collectively owned construction land Ministry of Land and Resources (MOLR) Before Project There was no government policy in managing transfer of rural collectively owned construction land, resulting in farmers rights were frequently infringed. Actual Cost US$ Date Compl. 185,018 12/31/08 Result The study provided important input to the decisions by the Central Committee of the Communist Party in promoting rural reform and development [the Central Committee of the CPC No. 16 <2008>] and a Circular on implementation of the Laws and Policies for Rural collectively owned construction land [State Council No.71<2007>], which was aligned with improve rural land system in GOC agenda. The study contributed to the revisions of Land Administration Law. In December 2012 the State Council endorsed the draft of amendment of Land Administration Law and submitted it for NPC s review. 45

59 A15-09 Policies for reforming collective forestry property rights State Forestry Administration(S FA) and the MoF Reform of collective forestry rights was one of the priorities in the country s rural work agenda. 295,924 6/30/11 (Support to GOC reform and development agenda, high adoption of reform and development policies) Policy input for the 12 th Five-Year Plan for National Forestry Development and informed policy making to enhance fiscal support for reforming collective forestry property rights. Research contributed to the policy on Subsidies for forest tending pilot issued jointly by MOF and SFA [MOF Document No.464 <2009>] Database constructed including 2,419 samples from 162 villages, laying foundation for future reform policies. B04-06 Economic Transformation Strategy for Panzhihua as a Resourcedependent City Economic development was heavily dependent on resources, environmental pollution, which hindered the city s long-term development. GBP 177,338 6/30/09 (Support to the GOC agenda, high adoption of reform policies, improved soundness of reforms) Contributed to the formulation of Development Plan of 6+2 industrial development clusters in Panzhihua, Panzhihua municipal government document NO.81<2010>]. Not much evidence of policy adoption or other achievement. Development and Reform Commission, Panzhihua Municipal Government B

60 Sustainable Development Strategy for energy-chemistry Industry Base in North Shaanxi Finance Bureau, Shannxi Province C01-06 Plan for sustainable Development of Hengshui Lake & wetland Hengshui Municipal Government, Hebei Province Development mode is inefficient and unsustainable There is no strategy and plan for sustainable development of Hengshui Lake and wetland. GBP 210,892 1/31/10 167,172 GBP 100,274 12/31/08 The report and policy recommendations were submitted to the provincial governor and provincial NDRC. The North Shaanxi Largesized Coal Demonstration Base and Water Diversion Project from Hanjiang River to Weihe River was approved and initiated as part of the subproject policy recommendations. (High adoption of reform and development policies) Conducted biodiversity survey of Hengshui Lake wetland, the first comprehensive investigation after establishment of the National Nature Reserve, providing scientific guidelines for future conservation work and management, Submitted Hengshui Lake Wetland Sustainable Development Strategy Plan and Eco-tourism Development Plan through; policy suggestions adopted in Hengshui city government document No.21 <2007> on prohibition of net-pen fish culture and blocking breeding in the lake. The study contributed to the Hebei provincial government report 2010 and was used by the province in the provincial development strategy. Suggestions were also provided on the establishment the long-term mechanism of the Hengshui Lake environmental protection [Hengshui city government Document No.15] C02-07 Demonstrative Project of Sustainable To address issues from low level social and economic development 138,061 6/30/09 (Improved soundness of reforms, high adoption of reform and development policies) Highlighted in ICR main text. Report submitted to the provincial government and People s Congress, with interim measures on ecological management in the legislation process; policy recommendations adopted in Hainan Province 47

61 Utilization of Land Resources in Tropical Forest Areas in Hainan Province Department of Land and Resources, Hainan Province and ecological conservation in tropical forest areas where inhabitants are mostly ethnic minorities. GBP 83,317 A Circular on the interim measures to improve the ecological compensation mechanism in the central mountain area [Hainan government No.71<2008>] Organized comprehensive surveys on climate, landform, water system, soil and biodiversity; produced 31 RS pictures and more than 1000 photos through wild investigation, providing data for future policy making. 30 people received formal training, 234 villagers received the training about economic plants cultivation. C03-08 Strategy and Plan for Conservation of old villages & Towns and Poverty Reduction in Shanxi Department of Construction, Shanxi Province C04-09 Building ecoeconomic zone in Poyang Lake Provincial Reform and Development Shanxi has the largest number of old villages and towns in China, but local villagers, still living in poverty, and have no capacity to protect cultural heritage to develop local economy. Conservation and utilization of old villages is a priority. Initiated against the backdrop of the decisions by the provincial leadership in building in eco-economic zone in Poyang Lake, so as to address and solve development issues in ecological environment 304,029 GBP 159, ,564 GBP 293,731 06/30/11 03/31/11 (High adoption of reform and development policies, building capacity at sub-national levels, improved soundness of reforms) Conducted survey for 101 historic villages and towns; completed the Resource, Population and Economic Condition Database of Historic Villages in Shanxi Province. The vice province governor gave positive feedback on findings of the study. (Improved soundness of reforms) The study contributed to the formulation of the provincial 12 th fiveyear plan. The State Council officially approved the plan of Poyang Lake ecological economic zone out of which arose the national strategy from the regional planning of Jiangxi Province [State Council No.145 <2009>]; proposed implementing measures adopted and issued in Jiangxi Province document No.28 <2010>. Also built water quality 48

62 Commission, Jiangxi Province C05-10 Sustainable use of resources in tropical forest areas in Hainan -- a demonstrative project by adapting CDD approach protection and poverty reduction. This is a follow up study on C02-07 to address ecological sustainability in the minorities inhabited areas. 210,163 GBP 48,439 12/30/12 monitoring database that serves as a platform for sharing data and information for Poyang Lake. 120 persons received training on policy. (high adoption of reform and development policies, sound reforms, capacity building at subnational level) The report was submitted to the Hainan provincial government receiving positive feedback from the provincial governor. Findings and recommendations were partly adopted by the 12 th five year plan for Qiongzhong Miao minority autonomous country environment protection. 221 persons received training. Department of Land and Resources, Hainan Province D06-10 Compensation Mechanism for Non-commercial Forest and its Supporting Policies There needed to be a compensation policy and a mechanism for sustainability of ecological forest management. 289,433 6/30/12 (capacity building at subnational level) Report informed the province s policies in compensating noncommercial forest in aspects of administrative and management cost and method for costing. Training material developed was used to train the target group of the technical staff in prefecture/county on management and technical support of ecological forest. 100 staff received training. Forestry Department, Henan Province D07-10 In the context of rural and urban integration, In moving forward rural and urban integration, reforming rural land 231,930 12/31/12 (Improved soundness of reforms and capacity building at the subnational level) Policy input was incorporated into the official documents on priorities of deepening rural and urban integration issued by the Leading Group Office for Rural and Urban integration, Chengdu Municipality. [Chengdu Municipal Government No.2 & No. 8 <2012>]; 49

63 policies for reforming rural land property right system in Chengdu Leading Group Office for rural and urban integ., Reform and Dev. Commiss., Chengdu Munic. Gov t. property right is a central issue to be addressed. Chengdu municipal government issued the circular on the arbitration on rural property [Chengdu Municipal Government No.48 <2013>] The study s findings and conclusions were submitted to the leadership of the state council. The report were widely circulated in relevant agencies of the state council. Chengdu Municipality circulated widely findings from the studies in the government internal reference. The policy input promoted the reform process of Chengdu s rural land property right system; 1.1 million rural land contracted management warrants and 1.11 million collective land use permits granted by October, 2012; arable land in circulation consisted of 41.9% of total arable land of Chengdu. (High adoption of reform and development policies) Component 5: Improving Regional and Sectoral Development Strategy 3 Subprojects 2 subprojects achieved intended outcomes 1 partly achieved intended outcome Comments Subproject A16-09 Transformatio n of regional economic development pattern Before Project In formulating 12 th five year plan, there needed to study differentiated policies in regional economic transformation and set up differentiated indicators in assessing different regional Actual Cost US$ Date Compl. 268,898 3/31/11 Result Policy input to the formulation of the 12 th five year plan, in particular, the study contributed to the chapter innovation-driven and the chapter policy orientation on building and enhancing the national and regional innovation system. State Council Document The twelfth Five year Plan ( ) 50

64 through innovations National Development and Reform Commission (NDRC) economic transformation through innovative approaches. Set up the regional innovation capacity index system and applied the system to the data from 31 provinces nationwide. (Support to the GOC development agenda, high adoption of reform and development policies and improved soundness of reforms) D08-10 Strategy for modernizing agriculture development in Yangling Agriculture Hi-tech Zone Yangling Agriculture Hi-tech Zone, Shannxi Province D09-10 Path design for Integrational development of airport economic zone and free trade zone Being the only national agricultural high-tech demonstration zone, Yangling was facing many development issues such as rural and urban integration, optimized use of land resource as well as land reform as required by the rural-urban integration. In the context of coordinated development of Bejing- Tianjin-Hebei, Shunyi District is positioned to develop itself as international aviation hub by adopting strategic approaches, through using geographical advantage it locates in the zone of Beijing International airport. 375,277 12/31/12 396,564 12/31/12 The study contributed to policy making in improving rural urban integration, rural land transactions, standardized agricultural production and technology clustering in the locality. Government Documents of Yangling Agriculture Hi-tech Zone reflected the study s recommendations: i) Suggestions for implementation of rural and urban integrated development in Yangling document No.53 <2011>, ii) Plan for standardized agricultural production for Yang Ling ( ) [Yangling document No.15<2012>], iii) Administrative measures for rural Land transaction in Yangling [Yangling document No.39<2012>] Provided training for 70 agriculture-related department officials and 90 managers of farmers cooperatives on modern agriculture. (High adoption of reform and development policies and building capacity at the sub-national levels) The study was completed with experts policy recommendations and implementation plan for enhancing development of airport economic zone in Shunyi District. The recommendations was endorsed by the leadership of the district government. (Contributed to marginally soundness of reforms, but objectives only not met) 51

65 Shunyi District People s Government, Beijing Municipal Government Component 6: Strengthening Institutional Capacity 3 Subprojects All 3 subprojects achieved their objectives Approx. 2,060 staff completed learning and training 4 administrative regulations were updated and issued 3 studies contributed to policy makings and enhancement of institutional capacity Comments Under TCC5, the design of institutional capacity building activities primarily focused on increasing civil servants (central agencies and provincial agencies) exposure to global learning and exchanges through trainings, international workshops and study tours. Subproject A20-09 Performance Assessment for TCC5 subprojects, Update of institutional regulations on operations and Institutional Before Project There were demands to sustain and continue the training program of learning global knowledge and strengthening institutional capacity for staff in MOF through an organized training program; regulations on IFI projects Actual Cost US$ Date Compl. 1,318,341 6/30/15 Result Training component: Visiting scholars: 19 persons WB project implementation management trainings: 810 persons from both central agencies and provincial agencies. Staff on secondment: 2 persons Working level international exchanges and seminars: 78 people Policy study component: MOF International Department released Administrative Measures on Selection of Procurement Agency [MOF Document No.133 <2011>] 52

66 Capacity Building Ministry of Finance A25-11 Talent Training and Talent Management Organizational Department/Chi na Executive Leadership Academy, Pudong (CELAP) Shanghai and program also needed to be updated; To support China s medium and long term talent development plan ( ) by Piloting a scientific and technological innovation talent training program 1,695,751 12/31/14 MOF International Department released the revised National Competitive Bidding Standard document templates based on <1997> version [MOF Document No. 67 <2012> Revised guidelines on Performance Evaluation of IFI Projects and Operations [MOF Document No. 133 <2013>] Assessment of the completed subprojects. EX-post evaluation of 27 completed subprojects under TCC5 was carried out and completed, produced a draft of guidelines for reviewing completed TA projects. (adoption of policy reforms, capacity building, support to GoC agenda) Highlighted in text. Training component: Approx. 50 scientific and technological talents, selected by the party s organizational Department, received overseas training Approx. 500 civil servants being engaged in formulating policy and talent development plan at central, provincial and prefecture/city level received the policy training. Policy study component: A study on talent evaluation was carried out with draft report delivered. Update: A textbook on talent management was published in 2016, sold publicly, and used for China Executive Leadership Academy Pudong (CELAP) follow-up training (4 courses on Talent training and management ) by the Academy of Public Administration. Trainees are cadres at the central agencies and provincial agencies, and are responsible for formulating talent development programs of their respective agencies. The expected number of the trainees is 210. (Support to the GoC reform agenda, capacity building at the national and subnational levels) 53

67 D01-06 Capacity Building of China Exim Bank China Exim Bank The institution needed resources to make its medium and long term development strategy in the areas of operations management, risk control and human capital development. 872,399 6/30/09 Training component: English language training received: 97 persons Visiting scholars: 4 persons Senior management staff received trainings on modern banking operation and management: 42 persons Policy study component: A set of regulations to upgrade internal control mechanism and strengthen risk management was circulated, in particular, Revised Guidelines on internal control. Exim Bank Document No.304<2009> The report on the institution s strategic development provided input to the reorientation and reform agenda for the Exim Bank. Note: In 2015, the State Council endorsed Exim Bank s business orientation as policy bank Implementation plan for EXIM bank reform [State Council Document No.56 <2015] (Capacity building at the national and support to the GoC reform agenda) Highlighted in text. 54

68 Annex 3. Economic and Financial Analysis (including assumptions in the analysis) Not Applicable 55

69 Annex 4. Bank Lending and Implementation Support/Supervision Processes (a) Task Team members Lending Names Title Unit Responsibility/ Specialty Yi Geng Sr Financial Management EASFM Financial Specialist Management Xiaowei Guo Senior Procurement Specialist EASR2 Procurement Xiuru Huang Operations Officer EASDE Operations Support Kong-Yam Tan Senior Economist EASPR Macroeconomic Management Jun Wang Financial Sector Lead Financial Sector Specialist EASFP Development Zhengxuan Zhu Consultant EASHH Operations support Supervision/ICR Wendao Cao Rural Development Specialist Rural and EASCS Agriculture Development Jianqing Chen Operations Analyst EASPC Operations Support Yi Dong Sr Financial Management EASFM Financial Specialist Management Gang Du E T Consultant Financial Sector EASFP Development Carlos Ricardo Escudero Consultant LEGLA Legal Qimiao Fan Country Director ECCU2 Enterprise Development Mingyuan Fan Sr Sanitary Engineer EASCS Urban Development Yi Geng Sr Financial Management EASFM Financial Specialist Management Sudarshan Gooptu Sector Manager, PREM Fiscal and Debt PRMED Mgt Chorching Goh Lead Economist Third TTL, EASPC Macroeconomic and fiscal Mgt Xiaowei Guo Senior Procurement Specialist EASR2 Procurement Jingrong He Procurement Specialist EASR2 Procurement Bert Hofman Director and Chief Economist EAPCE Macroeconomic and fiscal Mgt 56

70 Xiuru Huang Operations Officer EASDE Operations Support Li Li Sr External Affairs Off. EAPXT NGOs Development Guo Li Senior Agriculture Economist Rural and AFTA2 agricultural Development Xiaofan Liu Senior Economist Second TTL, EASPC Statistics Li Ouyang Program Assistant EACCF Team support Lin Yang Program Assistant EACCF Team support Jinan Shi Senior Procurement Specialist EASR1 Procurement Jun Wang Financial Sector Lead Financial Sector Specialist EASFP Development Meiyan Wang Consultant EASHS Labor Market Chaogang Wang Senior Social Development Spec SDV Gender issue Dewen Wang Social Protection Economist EASHS Social Protection Mei Wang Consultant EASCS Fiscal Shiyong Wang Senior Health Specialist EASHH Health - Aids Shuo Zhang Senior Health Specialist Health - Health EASHH Policy Liping Xiao Senior Education Specialist EASHE Education Ji You Urban Specialist EASCS Urban Development Xiaoqing Yu Sector Director EASHD Social Protection Fang Zhang Financial Management Specialist EASFM Financial Management Wei Zhang Financial Sector Specialist Financial Sector EASFP Development Chunlin Zhang Lead Private Sector Development AFTFE First TTL, Enterprise, and Public Sector Min Zhao Senior Economist EASPC Macroeconomic and fiscal Mgt Jianping Zhao Senior Energy Specialist MNSEG Energy Lin Yang Program Assistant EACCF Team support Zhengxuan Zhu Consultant EASHH Operations Support Richard Carroll Consultant-Economist-ICR Yan Wang Consultant-Economist-ICR 57

71 (b) Staff Time and Cost Staff Time and Cost (Bank Budget Only) Stage of Project Cycle USD Thousands No. of staff weeks (including travel and consultant costs) Lending FY FY FY Total: Supervision/ICR FY FY FY FY FY FY FY FY FY FY Total:

72 Annex 5. Beneficiary Survey Results Summary of Beneficiary Survey conducted in June A beneficiary survey was conducted from June-July, The objective was to further collect information on the benefits and special features of the TCC5, focusing on issues of relevance, efficacy and efficiency, flexibility, and timeliness. 2. To the questions related to the benefits of the subprojects (q1-q3)); 100% of the 14 responding subprojects rated 4 and 5 in relevance, and efficacy, and efficiency. Among these three criteria, relevance was rated the highest with 85.7% rated 5; on efficacy, 71.4% rated 5; on efficiency, 50% rated To the question on whether the subproject has long term impact (q4-q5), 100% of the 14 responding subproject answered yes. Some of them rated the long-term impact 5, (64.3%); others rated it 4 (35.7%). Many of them answered the detailed questions in long writing answers in Chinese. 4. To the question on whether the study is continued /followed-up 100% answered that it has been continued or followed up. Most of the outcome /recommendations have been submitted to the national or provincial government, with the exception of two (related to data platforms). Four data platforms have been running well or expanded. 5. To the question on timeliness of application process, majority of the respondents answered favorably by selecting Just-in-time, or appropriate. Among 14 subprojects that responded, 78.5% said that the subproject application process was Just-in-time (question 2), 21.5% said it was medium or no info on comparator (because this was the first application to any internationally financed TA project). The actual length of application process varied a great deal, from 1-2 months to as long as 20 months, depending on the beneficiary s capacity of preparing concept note and review and revision process. The medium length is 5 months. 6. To the questions on the timeliness of project implementation (from approval to completion), a large proportion answered favorably by selecting Just-in-time or appropriate although the percentage is smaller. 57.4% of the 14 project managers answered Just-in-time, 7% medium and 35.6% selected no information on comparator because these had not implemented any other project by any donor /multilateral organization. The actual length of implementation time varies a lot, ranging from 12 to 42 months, with the median of 23 months. 7. The question if you have any possibility of conducting such a project without TCC5, had the following responses: 43% of respondents said no possibility, 36% said they have 25% possibility, and 21 % has 50% possibility (to find funding). On the source of potential alternative funding to be found, 50% said they would seek funding from the national budget, 25% would seek provincial budget funding, and 16% would seek foreign donor funding. 59

73 Annex 6. Stakeholder Workshop Report and Results An Implementation Completion Workshop for TCC5 was held jointly by the Ministry of Finance and the World Bank Office Beijing on June 30, Ms. Liu Jingying, Deputy Director of the Technical Cooperation division, International Department of the MOF, and Jianqing Chen, co- TTL of the TCC5 project from the World Bank chaired the workshop. 43 participants/ TTLs of the subprojects attended the workshop. The morning session focused on subprojects at the central government level, and afternoon session on subnational levels. The subproject staff provided mostly positive feedback on the TCC5 funded activities. In the morning session, participants from Central Government Ministries, including the Central Bank, the Ministry of Finance, the People's Congress, the Ministry of Labor and Social Security, the Bureau of Statistics, presented the outcomes /results of their subprojects. They all considered TCC5 as highly successful. TCC5 met their specific demand for international knowledge in a "just-in-time" fashion; introduced new ideas, policies, and knowledge on "how to" issues. The practical knowledge under these subprojects is novel to China, otherwise unavailable without the TCC5 support. A list of presentations in the morning (in sequence of presentations): 1) A19: Indicators for Financial Statistics and Statistical Standardization, PBoC. Presenter: Director Guo. Under this subproject, the team achieved 3 major results: Established a platform for financial statistics; issued four financial statistical standards, which are approved by CFSTC as national standards; 2) submitted Report on Plan for Financial Authorities in Coordinating Financial Statistics and drafted Regulations on Financial Statistics to State Council, 3) Research results adopted in PBC document No.286 <2011>. Chinese Premier gave some important instructions on this and the impact is nationwide. The subproject was Just-intime and highly effective. The team learned from the Central Bank of Italy and Spain and got guidance from Mr. Hu Benli from the World Bank. Without the TCC5, the team would not able to achieve these results due to the lack of international and WB experts and a dedicated internal team concentrating on these highly technical issue. 2) A13: Statistical Standards and Statistical Monitoring of External Debt, SAFE. Presenter: a lady from SAFE. A13 aimed at including external debts denominated in RMB into external debt statistics, and establishing an external debt statistical system conforming to the international standard, the Special Data Dissemination Standard (SDDS) as required by the IMF. The subproject was approved within a month just-in-time. But implementation took a long time due to managerial changes in our department (the Director General changed three times). In the end the subproject was highly effective, and the team learned from experts from the IMF, Bank of International Settlement (BIS) and domestic experts. Our results using SDDS is fully implemented and published. See weblink. 3) A11, VAT Reform and Legislation. Budget Committee, National People s Congress and the Ministry of Finance worked together to provide support to put VAT law into the legislative Plan of the NPC. It aimed at conducting research on the experience of VAT implementation in other countries, and providing sufficient guidance on the direction of VAT reform. The research resulted in a draft of VAT law, which was accepted by the 11 th National People s Congress in 2010; and in the 12 th National People s Congress ( ), promulgation of VAT Law has been upgraded as a priority in NPC s legislative agenda. This was evaluated as highly satisfactory by the Evaluation Group of the Ministry of Science and Technology. 60

74 4) A09: Remuneration Disparity of Civil Servant in Different Regions, Ministry of Personnel. Presenter: Dr. He. Our subproject aimed to develop survey system to provide basic data support for civil servant salary management; provide theoretical basis for the establishment of civil service regional pay level decision mechanism; put forward policy advices for the establishment of civil service additional locality allowance system. After obtaining the project approval, the Minister paid attention and placed top importance to this subproject. The team developed software and analyzed data from 56 sample cities of 8 provinces in eastern, middle and western areas, exploring the determinants of civil servant salary level and adjustment mechanism. Without TCC5 the team would not able to get support from the Minister and from all level of officials. 5) A16: Transformation of Regional Economic Development Pattern through Innovations, NDRC. Presenter: Ms Li Taoya. This subproject aimed to provide regional development strategies in the Twelfth Five-year plan. Policy suggestions from the research were represented in the Twelfth Five-Year Development Plan; and a regional innovation capacity index system was set up, including data from 31 provinces nationwide. This is very timely just-intime for the 12 th FYP. We have learned from World Bank experts such as Wang Jun on inclusive innovation. Without TCC5, this project would not been financed. It would be very difficult to find any funding for this type of soft knowledge or TA projects. We have been doing some continuous research and to disseminate the reports. We have also learned from WB on procurement and tendering /bidding process. 6) A04 and A28: Ethnic Villages Preservation and Development Pilot Plans, State Ethnic Affairs Commission. Two presenters. These subprojects aimed to strengthen the capacities of SEAC, local government, ethnic people and communities, and adopt the participatory approach and Community Driven Development (CDD) in ethnic minority areas. The team implemented pilot programs in 6 ethnic villages through participatory approach and CDD model; Trained 500 project managers from 60 participating villages through community-driven project; Issued and implemented Development Plan for Chinese Small Ethnic Minorities ( ); and CDD approach was adopted by SEAC Document No.53 <2008> as well as Xinjiang Uygur Autonomous Region Provincial Document No. 115 <2009>. They are timely and highly effective. Without the TCC5 funding, we would not able to find funding to learn from international experience on CDD and conduct the pilots. 7) A27 Policy Implementation Assessment and Capacity Building of New Pension Scheme for Rural Residents, Ministry of Human Resources and Social Security (MHRSS). The representative from the Ministry of HR and Social Protection said that TCC5 helped the implementation of the World s largest social security system with 900 million contributors (A27-12). Policy suggestions on improving pension system for urban and rural residents reflected in State Council Document No.8 <2014>, The subproject sponsored a survey of 6000 sets of questionnaires, helped optimization of the rural social protection system, established a large information system, and brought out 10 policy innovations. As a result of these policy innovations, rural people now have stronger incentives to make regular contributions with the average contribution amount increased to 248 yuan per participant in 2014, and the local governments were able to increase the subsidy levels by 50 yuan per person per month. The team was also able to provide training for 1500 officials each year, reaching to 5000 in 3 years. 8) B01. Research and piloting on operational mechanism of rural community development fund, Leading Group of Poverty Reduction, State Council and MOF. The subproject aims to establish an operational and management mechanism and piloting the 61

75 Community Development Fund (CDF) for self-managed mutual assistance. From , piloted CDF in 145 villages, 66% of the villagers in pilot areas used mutual funds. Now 8000 poor villages in 28 provinces have established such CDF, benefiting millions of poor households through mutual assistance. Policies adopted in MOF and LGOP joint document No.103<2009>. Without TCC5 it is not possible to have such a soft project. Other presenters in the morning included: A18: Policies for Sound Development of Private Non-enterprise Units and Capacity Building, NDRC. Presenter: Director Zhao. A06, Improving Law and Regulations in Government Procurement, MOF And A07: Management Mechanism for Government Public Assets, MOF, and A14: Strategic Framework for Government Accounting Reform and Management, MOF In the afternoon, officials from 8 provincial level subprojects presented the evidence of their results, including government documents, certificates of awards, and published books. They presented stories and cases of beneficiaries including unemployed women and other vulnerable groups. In addition to the "just-in time" feature, they placed high value on the hands-on training and capacity development provided by the PMO of the Ministry of Finance, and the Task Team Leaders from the World Bank. Without the TCC5, such support and capacity development are not available to these low-income provinces which usually have weak capacity in implementing international TA projects. Participants provided comments for the various aspects of the project Management, emphasizing that TA project is different from large investment lending projects and should be subject to simplified and streamlined procurement procedures with more flexibility. They also suggest this "umbrella type" of TA project be continued, with stronger technical and knowledge support from the World Bank. Many officials from provinces expressed their willingness to borrow from the Bank for such soft knowledge projects, saying that although China may have sufficient savings now, the World Bank's rich international knowledge on "best practices", its access to the best experts, and support for capacity development is irreplaceable. In other words, without TCC5, these international experts and global best practices are not accessible to the inland provinces. List of presentations in the afternoon: 1) B07. Reemployment project to support poor and unemployed women workers, Women s confederation of Gansu province. This subproject focuses on supporting the laid-off women workers to find reemployment opportunities, the team trained project managers and all of them got promoted to higher positions, and they learned how to make courseware, and train unemployed workers. One example is Ms Chen Yongfang who got laid-off when she was 40 years old, and after received training, she opened a business providing special care for new mothers and their newborns. This service is in high demand. Now her income is 12,000 yuan per month for ten months, or an annual income of 120,000 yuan. This subproject has produced 13 policy results. In the MOF no 7 document 2009, the government will provide significant subsidies for women opening her own businesses. In Gansu province alone 600,000 poor women opened their own businesses. The post-completion evaluation rated this subproject highly satisfactory. 2) Jiangxi province has two subprojects, a) measurement for low income guarantee, and 2) Poyang Lake Ecological-economic area. The Poyang Lake Ecological Zone (C04-09) 62

76 subproject has achieved high efficacy and efficiency. A State Council document and several provincial documents were produced. The total investment was about 14 million yuan (including the matching funds from the province), but the demonstration impact goes far beyond one small zone to form strategies for the entire province, with economic impact "several times higher than the initial investment". The province is continuously implementing the policies till this day. In addition, the two subprojects have led to the preparation of two World Bank lending projects: one of them is about urban management, and the other is about managing the water and wet-land. The post-completion evaluation rated C04-09 highly satisfactory. 3) D06: Compensation of Non-commercial forest and supporting policies, Forestry department, Henan Province. The research team produced policy analysis and documents to the provincial government, and received awards in 2013 for high quality research. The project manager said that this project is Just-in-time, and highly relevant. Since this subproject is 100% to be repaid by our fiscal budget, we received strong support from the provincial government. In the end, the province decided to provide payments to ecological service (PES) in the amount of yuan per mu (area) of forest. This policy has been implemented since 2013 till today. This subproject is just-in-time and it has led to a project loan from the Asian Development Bank of $400,000 TA grant. The result is going to be long lasting. 4) B10. Labor service in poverty-torn Areas of Ningxia Hui Autonomous Regions (NXHAR). The subproject has contributed to Provincial 12 th Five Year Plan and provincial government document No. 77<2011>, No.89<2011> on vocational training, employment services and social security. In order to facilitate labor migration for rural workers, they compiled training textbooks in Arabic Language for Muslims. 221 staff were trained of which 40 were professional teaching staff (Training of trainers) and they in turn trained 30 thousand participants. The postcompletion evaluation rated B10-09 highly satisfactory. 5) D08. Strategic research of modern agricultural development in Yangling Agriculture Hi-tech Zone, Yangling Agriculture Hi-tech Zone, Shaanxi province. Established a land transfer system and management scheme, a modern demonstration zone for modern agriculture technology, and research results were incorporated in Yangling District documents, and helped formulating the standard for the entire Shaanxi province. Provided training for 70 agdepartment officials and 90 managers of farmer cooperatives. Project issued certificates to trained professional farmers with special skills. The project manager said that TCC5 was just-in-time. Without TCC5, it would be impossible to find funds for such soft issues. The post-completion evaluation rated D08 satisfactory. Other subprojects presented in the afternoon (digital voice recording is available): C02. Demonstrative project of sustainable land resource management in Hainan; Department of Land and Resources. Forestry department, Hainan province C03. Protection of Ancient towns in Shanxi, Dept of Construction, Shanxi province. C05. Development models in ethnic minority communities in the mountainous area, Dept of land and resource management, Hainan province. D05 Performance evaluation of Depart of Ocean and Fisheries, Hainan province D03. Provincial special purpose fiscal funds management in Guangdong, Finance department, Guangdong province D12. General Practitioner system in Hainan province, Dept of Health, Hainan Province. 63

77 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR 1. Over the past 30 years after reform and opening-up, China has experienced remarkable economic growth, yet it's also faced with the challenges of sustainable and balanced development. The World Bank has been proactively participating in the reforms and development of China ever since the early 1980s, and the Technical Assistance (TA) project has be one of the most important carriers for the World Bank to carry out knowledge cooperation with China. The Technical Cooperation Credit (TCC) series TA projects implemented since 1983 have become a sound model of the knowledge cooperation between China and international financial institution. In June 2006, World Bank and the Ministry of Finance of China jointly launched the 5th TCC project, namely "China Economic Reform Implementation Project" (hereafter referred to as "TCC5 Project" or "this project"). As of March 2015, TCC5 Project has implemented totally 59 sub-projects with million US dollars of grants and loans provided by World Bank and 4.9 million US dollars of grants provided by UK Department for International Development. According to statistics, TCC5 Project developed totally 443 research reports, providing direct or indirect support for the promulgation or improvement of 216 policies; 170 domestic and overseas training seminars were organized, involving totally 17,412 participants. The Project has also developed approximately 100 information system and database related software and hardware outputs. The majority of the project result have been adopted and applied. As a TA project, TCC5 has played a vital guiding and supporting role in the 10-year economic reform of China. 2. By improving or promoting the promulgation of reform-related regulations and policies in such fields as tax, finance, public service and urban-rural balanced development, TCC5 has achieved its objectives by guiding, optimizing and supporting China's economic reform. Through the cooperation with 33 central or provincial/municipal/district-level functional departments/institutions, TCC5 Project has launched a host of sub-projects at national and local levels and carried out the institutional capacity building. TCC5 has helped promoted China's reforms in such fields as administrative management system and social undertaking, basic economic system, agricultural and regional sustainable development, fiscal and taxation system, and financial system. It has launched, improved and implemented the related strategies and policies of reforms and development, effectively supported the reform agenda of China. Most of the sub-projects have completed the expected activities and outputs, achieving their respective objectives. By promoting the release of certain systems and policies, these sub-projects helped guide and optimize the reform process and directly support TCC5 to accomplish its established development goals. 3. Diversified application mechanism ensures the effective application and diffusion of project outputs. The outputs of most of sub-projects have been effectively applied by the executing department or the superior department, underpinning the promulgation or improvement of 216 reform policies of all levels and all types, with certain outputs going beyond the expected application effect. 12 sub-project outputs, including the "Potential Risks of the Scaled-up Circulation of the Right to Rural Land Contractual Management and the Countermeasures", have been applied at the level of National People's Congress or State Council. The mechanisms of applying sub-project outputs include: 1)the outputs have been forwarded to the superior authority or application department by sub-pmos, and it is approved by the officials, and embodied in the policy articles enacted by the government and disseminated at national, departmental and local levels; 2) directly release the sub-project outputs in the form of policy document or industry standard after they have been recognized by the application department, followed by diffusion and application; 3) output has been broadly diffused in the academic circles in the form of books, papers and other influential academic outputs. 64

78 4. Personnel and institutional capacity building activities targeted the bottlenecks of institutional reforms and underpinned the sustainable growth of China's economic reform. With regard to the bottleneck of scarce personnel and institutional capacity which jeopardized the reform process, TCC5 Project has launched the capacity building initiatives targeting different groups in alignment with China's demand for talent development and polices relating to human resources construction. Aiming to improve the quality of "human being", these initiatives have also effectively driven the capacity building of certain key government agencies. Under the support of this Project, a group of high-level talents with international vision and practical experience have received high-quality training and become the internationalized talents force for China s future reform. Some local sub-projects launched the capacity building activities targeting vulnerable groups and directly applied the outputs at community level to benefit the underprivileged groups, well reflecting the theme of "inclusive growth" and contributing to the accomplishment of poverty reduction goal. 5. By innovating on the management mechanism, TCC5 Project has explored and established scientific and standardized management procedure. Compared with TCC4, TCC5 has carried out effective innovation in terms of management, and has developed the umbrellashaped TA project management model and experience to standardize and improve project management. The expert technical review mechanism was introduced to control the quality of sub-projects. The PMO invited the World Bank to thoroughly participate in project identification and process management in order to give full play of the advantages of World Bank experts in sub-project guidance, which was commended by sub-pmos. The PMO has also developed detailed manuals and operating procedures with regard to management method, accounting and procurement to allow standardized management. All-around training and guidance over the subprojects were also provided by the PMO and World Bank through telephone guidance, field training, etc. In addition, with the aim of establishing TA project performance monitoring and evaluation system, this Project took the lead in introducing the ex-post outcome evaluation of sub-project. 6. Ministry of Finance has proactively fulfilled its duties as the borrower and efficiently completed the task of project management. During TCC5 Project implementation, the PMO of the International Economic and Financial Cooperation Department of Ministry of Finance identified and supported 59 sub-projects on behalf of Chinese Government. These subprojects basically cover the main tasks of China's economic reforms in the 11th Five-Year Period and 12th Five-Year Period. The selected subjects of sub-projects combine the top-down policy trend and the actual bottom up need. The sub projects respond to the major demands of China, support forward-looking designs to lay the foundation for upcoming policies & strategies, and pay close attention to those critical and challenging fields continuously pushed ahead in the reform process. As the borrowers, the PMO and sub-pmos have completed their management and implementation task respectively, ensuring the smooth implementation of this Project and its sub-projects. The fund appropriation and public bidding were also carried out by the PMO in strict compliance with relevant policies and regulations of World Bank and the Chinese Government. Although the payment progress fell behind due to project postponement, it also met the needs of project implementation. The sub-project output verifiers have taken an active role in the quality monitoring and output application. As borrower's representative, the PMO carried out satisfactory communication with stakeholders and proactively promoted the application and diffusion of sub-projects outputs, with broad recognition received from the World Bank and project implementation agencies. The smooth implementation of this project relied heavily on the efficient management of PMO. 65

79 7. World Bank management team has earnestly fulfilled their responsibilities in helping to identify, prepare and monitor the sub-projects, with its advanced idea and intellectual support that fully recognized and praised by Chinese stakeholders. With its indepth participation in the preparation of TCC5 sub-projects, the World Bank Management Team has accomplished the mission of ensuring the quality and standard of sub-projects. By strictly fulfilling its monitoring and evaluation functions, the World Bank management team played a vital role in assuring the quality of sub-projects. PMO and sub-pmos fully appreciated the important contributions made by the World Bank management team. By leveraging the knowledge platform and intellectual network of World Bank, each sub-project implementation team was able to work with international experts specialized in related fields to truly introduce the advanced concepts and practical experience relating to such fields. The intellectual resources of World Bank have played an irreplaceable role in project implementation. Given the broad coverage of TCC5 Project and due to the limited stock of intellectual resources, World Bank is faced with certain deficiencies in coordinating expert resources. 8. By reviewing and analyzing the whole process of project implementation, we can also sum up certain experience and lessons learned for our reference in the future implementation of TA projects. 9. Adopting a philosophy "Four aspects of contributions" in policy and policy making to highlight result-oriented management for the TA project. This Project took the lead in introducing the "result-oriented" management, which calls that "Four aspects of contributions" must be embodied in the objective/indicator design of sub-projects, namely contributing to developing strategy, contributing to developing policy, contributing to developing solution and contributing to developing mechanism. This measure enabled stakeholders to reach a consensus on the expected objectives and outputs in the phase of project design, guided sub-projects to embody "Four aspects of contributions" in the phase of project implementation and laid a solid foundation for the TA projects to obtain good effects. The post-evaluation of certain sub-projects conducted by a third-party organization shows that most of the sub-projects have explicitly designed the "Four aspects of contributions" objectives and indicators in their proposals, and the "result-oriented" philosophy has been embodied in the sub-project implementation, which was a highlight of this TA project. 10. Focusing on the national strategy and policy and designing the project from actual needs would contribute to the application and diffusion of outputs. The outstanding achievements made by this project in ten years rely closely on the fact that it focused on the central/local development strategy, took account of the actual needs of relevant departments/organs and carried out sub-projects in proper time. Successful cases of this project indicate that the outputs will be applied easier if the sub-project is closely aligned to the actual reform needs of the department or local government. In addition, the key to project success also rests with the close alignment with national and local trends and good selection of the timing for sub-project design and output submission. 11. Moderately flexible management mechanism was employed to ensure the timeliness and availability of sub-projects. The project implementation was accompanied by the everchanging economic reform situations and the continual emergence of new demands and challenges. Given such a context and characteristics of TCC5 Project, PMO and sub-pmos have employed a moderately flexible management mechanism to adjust the activities, contents and timing of the project and sub-projects, thus ensuring the timeliness and availability of the implementation results. The moderate adjustment of project and sub-project based on China's developments and changes not only catered to the actual needs, but also contributed to the 66

80 realization of project objectives. Therefore, employing a moderately flexible implementation and management mechanism is also the experience we have learned from this project. 12. Attention from leadership contributed to the success of TA projects. Attention from leadership is the common experience of all successful sub-projects. TCC5 project management measures have explicitly stated that all sub-projects need to identify the output verifier, who must support and verify the phase-specific outputs and important activities of the sub-project. This measure has effectively enhanced the extent of attention from the leadership of relevant functional departments/organs on sub-project outputs. In addition, attention from leadership also facilitated the implementation and output diffusion of sub-projects. 13. Selecting the appropriate implementation agency is the key to the success of project. Unlike other research and capacity building projects, TCC5 Project purposively selected those key functional departments at central and local levels as the implementation agencies of subprojects. According to their own demands, each functional department pointed out the issues to be addressed by the sub-projects and engaged premium consultants through public bidding to provide solutions and advisory opinions. Proper selection of the implementation agency also helped attract other relevant administrative authorities to engage in the development of regulations and policies, thus ensuring the compatibility and feasibility of the policies to be promulgated. The results of sub-project implementation indicate that: on the basis of assuring the quality of sub-project outputs, selecting an implementation agency with functions closely connected with the research and implementation contents of sub-project will effectively contribute to the application and diffusion of sub-project outputs. 14. Strengthening sub-project management training is necessary for smooth project implementation. Given the complexity of World Bank financed projects in management, PMO put particular emphasis on the training of sub-project managers, who were informed of the management rules and knowledge repeatedly through training seminars, telephone training, monitoring process and management manual. Since most of the sub-project implementation agencies are government agencies or departments directly under the central government that are prone to personnel turnover, to ensure the unaffected management of sub-projects, the future TA projects shall target different audiences and organize different types of management training, and the project information platform shall be built to facilitate the experience sharing and exchange between sub-pmos. 15. Inadequate attention was paid to the reform of basic economic systems and the planning for project identification is yet to improve. During the implementation of this Project, inadequate attention was paid to the reform of China's basic economic systems, including the reform of state-owned enterprises and the protection of non-public sectors of the economy. Meanwhile, sub-project designs failed to cover such aspects as how to address China's changing role in the world economic landscape -- in particular, how shall China adapt to the international economic order and how shall China play an active role in the transformation of international economic order. Such contents shall be taken account of during the design of future TA projects. Furthermore, sub-projects were mainly proposed and organized in the bottom up manner. To ensure that the TA projects are further aligned to the economic reform tendencies and needs of the central government or local government, it's necessary to release a project guide periodically based on the studies of national strategies and demands, thus providing top-down guidance over sub-project identification and allowing better planning for TA projects and the use of funds. 16. Inadequate design of monitoring & evaluation indicators and output tracking mechanism. How to design and implement the outcome monitoring & evaluation mechanism 67

81 and evaluation indicators remained one of the major challenges faced by this project and the subprojects. Other challenges, such as the monitoring & evaluation philosophy, funding for monitoring & evaluation activities and the inadequate capacity for designing and carrying out monitoring & evaluation activities, also jeopardized the summing-up of project outcomes. Therefore, it's necessary for us to strengthen the design and arrangement of TA project monitoring & evaluation framework, evaluation methodology, evaluating indicator system, evaluation mechanism and evaluation funding. 17. When the project came to the end, a majority of sub-projects have developed and submitted the corresponding policy study reports/plans, which were accepted by the application authorities. For the other sub-projects, although the outputs have been submitted, there is still a long way to go before the outputs can be transformed into national laws/regulations. The implementation experience of TCC5 project shows that: in order to comprehensively understand and evaluate the effects and impacts of TA projects on China's economic reform, we still need to further track and study the outcome and impact of TA project. During TCC5 project implementation, a better mechanism to track the outcomes and impacts of this project and its subprojects was needed, and it is necessary for us to strengthen this effort in the design of future TA projects. 18. Project implementation efficiency was affected by multiple factors, and it's needed to strengthen the design of relevant management mechanisms. Due to multiple reasons, a large number of sub-projects were postponed and adjusted mainly in terms of timing and activities, which in turn compromised the implementation efficiency of the project and its subprojects. Given the characteristics of TA projects, to avoid the excess influence on project implementation and management, it's needed to study and develop the mechanism for timely adjustment, feedback and review/approval of sub-projects, allowing more standardized project adjustment and improving the efficiency of project implementation. 68

82 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders DFID-Shan Mitra Thank you for giving us the opportunity to comment on this PCR. I found it to be clearly argued and presented, interesting and useful. Whilst the project appears to have performed well in terms of outcomes, I note the comment that the nature of this project i.e. a flexible, umbrella-type arrangement led to some shortcomings in the definition of PDO indicators. This is reflected in the assessment on pp Of the 4 achievement areas discussed I found no. 4, focusing on adoption rates, most persuasive, as well as providing strong evidence for the effectiveness and relevance of the impact of the project, particularly when considered alongside the assessment of the counterfactual in para 60. No. 1 (support for the reform agenda) I found less useful as it appears to be met through initial selection criteria rather than actual performance, while the discussion of No. 3 (soundness of reforms) notes the challenges in measurement. The more useful aspects of the report in my view are those relating to lessons learned, process, the nature of the instrument, and Bank and borrower performance. On the impact of DFID co-financing (para 31) it would be useful to know whether the availability of DFID grant financing led to a greater number of activities addressing poverty, gender and environmental issues than would otherwise have been the case. This is implied, but the counterfactual is not clear. It was also not quite clear from the document which sub-projects were financed from the DFID grant. I assume these are the sub-projects in Annex 2 for which the cost is given in GBP could you clarify this? 69

83 Annex 9. List of Supporting Documents Amendment to the Loan Agreement-July 25, 2011 China Economic Reform Implementation Project TCC5), Mid-term Review Mission, October 6-31, 2008, Aide-Memoire. China Economic Reform Implementation Project TCC5), Mid-term Review & Project Management Experience Exchanging Meeting, Dissemination Materials China Statistical Yearbook-2014 Comprehensive Evaluation Report of the 27 Subprojects, Ministry of Science and Technology, Knowledge-Based World Bank Group Country Programs, IEG, Loan Agreement (Economic Reform Implementation Project) between People s Republic of China and International Bank for Reconstruction and Development, Dated June 21, 2006 (Conformed Copy). Project Appraisal Document on a Proposed Loan in the Amount of US$35 million to the People s Republic of China for an Economic Transformation and institutional Capacity Building Project, April 21, Restructuring Papers December 15, 2010 and July 12,

84 Annex 10: Policy Measures Resulting from TCC5 Subprojects Level Relevant Policies Subproject Communist Party Document (3) State Council Document (12) Ministerial Document (36) Central Committee of the Communist Party of China, Decision on Several Big Issues on Promoting the Reform and Development of Rural Areas, Adopted at the Third Plenum, 17 th Central Committee, 10/12/2008 State Council and Central Committee of the Communist Party of China, No. 1 Central Document, 2010 Central Committee of the Communist Party of China, Decision on Some Major Issues Concerning Comprehensively Deepening the Reform, Third Plenum, 18 th Central Committee, 11/12/2013 Circular on the Stringent Implementation of the Laws and Policies Relevant to the Use of Rural Collective Construction Land (Document of the General Office of the State Council [2007] No.1) Revisions on Injury Insurance Regulations, State Council, (Decree of the State Council [2010] No.586 ) Implementing Regulations of Government Procurement Law of the People's Republic of China (Decree of the State Council [2014] No.658) State Council, Notice on Approving Ministry of Finance on the Reform of Accrual-based Government Comprehensive Financial Report System (Document of the State Council [2014] No.63) The Twelfth Five-Year Development Plan for National Economic and Social Development of the People's Republic of China, 3/16/2008 Plan for community-based social services system for the elderly Issuing the establishment of a sound social services system for the elderly ( ) (Document of the General Office of the State Council [2011] No.60) The Twelfth Five-Year Development Plan for National Economic and Social Development of the People's Republic of China, 3/16/2008 Implementation of Medium-term Fiscal Planning and Management (Document of the State Council [2015] No. 3) Circular on Conducting the Third National Economic Census (Document of the State Council [2012] No. 60), Opinions on Establishing a Unified Basic Pension Insurance System for Urban and Rural Residents (Document of the State Council [2014] No. 8) Approval of Planning for Poyang Lake Ecological Economic Zone (Correspondence of the State Council [2009] No.145) Official Reply on Approving the Framework Plan for Implementing the Reform of the Export-Import Bank of China (Correspondence of the State Council [2015] No. 56) Guidance on the Pilot Program for the Transfer of Rural Collective Construction Land Use Right, Ministry of Land and Resources A01 A10 A21, A31 A01 A03 A06 A14 A16 A18 A21 A24 A26 A27 C04 D01 A01 71

85 The "Eleventh Five-Year" Community-based Service System Development Plan (Document of Social Development Department, National Development and Reform Commission [2007] No. 142) Guidelines on Demonstration Units for Constructing National Harmonious Communities Standards for the Diagnosis and Treatment of Work-Related Injuries ( Document of the Ministry of Labor and Social Security [2008] Notice on the Issuance of Work-Related Injury Rehabilitation Services and Standards for the Diagnosis and Treatment of Work- Related Injuries (Document of Ministry of Labor and Social Security [2008] No.31) Notice on the Pilot Evaluation of the Performance of Special Funds for Employment (Document of Ministry of Finance and Ministry of Labor and Social Security [2012] No.17) Notice about Issuing the Implementation Measures for the Centralized Government Procurement by Central Entities (Document of Treasury Department of Ministry of Finance, [2007] No. 3) Interim Measures for the Management of Incomes of Central Administrative Entities Arising from the Disposal, Leasing and Lending of State-owned Assets (Document of the Administrative Regulations Department of Ministry of Finance [2009] No. 400) Supplementary Notice about Issues Concerning the Implementation of the Interim Measures for the Management of Incomes of Central Administrative Entities Arising from the Disposal, Leasing and Lending of State-owned Assets (Document of the Administrative Regulations Department of Ministry of Finance [2009] No. 567) Notice on Issuing the Interim Measures for Monitoring Local Government Foreign Debt Indicators (Document of Department of Finance of the Ministry of Finance [2008] No. 175) Notice on Issuing the Interim Measures for the Financial Management of Projects Financed by Loans and Grants of International Financial Organizations (Document of International Department of the Ministry of Finance [2011] No. 10) Notice on Regulating the Cross-border RMB Capital Account Operations (Document of the General Affairs Department of the State Administration of Foreign Exchange [2011] No. 38) Notice on Issuing the Accounting System for Hospitals (Document of the Accounting Department of the Ministry of Finance [2010] No.27) Measures for Trial Compilation of Accrual-based Government Comprehensive Financial Report 2010 (Document of the Treasury Department of the Ministry of Finance [2010] No. 148) Notice on Issuing the Accounting System for Administrative Entities (Document of the Treasury Department of the Ministry of Finance [2013] No. 218) The "Twelfth Five-Year" Forestry Development Plan, State Forestry Administration A02 A03 A05 A06 A07 A08 A13 A14 A15 72

86 Pilot Program of Forest Tending Subsidy 2009 (Document of the Agriculture Department of the Ministry of Finance and State Forestry Administration [2009] No. 464) Guidance on the Implementation of the Financial Statistics Standard (Document of The People's Bank of China [2011] No. 286) Common Statistical Terms of Financial Instrument released by People's Bank of China, Administrative Measures for the Performance of Loan and Grant Projects of the International Financial Institutions by Ministry of Finance, Administrative Measures for the Performance Evaluation of Loan and Grant Projects of International Financial Institutions by the Ministry of Finance Administrative Measures for the Selection of Procurement Agencies for Projects Financed by Loans or Grants of International Financial Organizations (Document of the International Department of the Ministry of Finance [2011] No. 133) Ministry of Finance, Sample Documents of Competitive Bidding of International Financial Institution Projects (Document of the International Department of the Ministry of Finance [2012] No. 67) Work Plan on the Non communicable disease control ( ) by issued joint 15 government departments led by the ministry of health (Document of Ministry of Health [2012] No.34) Notice on the updated market maker system for government bond jointly by People's Bank of China, Ministry of Finance (Document [2011] No.6) Notice on Carrying out the Pilot Program of Pre-issuance of Treasury Bonds jointly issued by Ministry of Finance, The People's Bank of China, and China Securities Regulatory Commission (Document [2013] No.28), Report on the Pilot Reform about the Practice and Service Mode of General Practitioner System (Document of the Health Reform Office State Council [2014] No. 5) Posting Yield Curve of Treasury Bond in the Home page of the Ministry of Finance, December, 2014 Guidance on Further Improving the Pilot Programs of Mutual Funds in Poor Villages (Document of The State Council Leading Group Office of Poverty Alleviation and Development and the Ministry of Finance 2009] No.103) Notice on Establishing the Shanxi Province National Pilot Area for Comprehensive Reform of Resource-based Economy (Document of National Development and Reform Commission [2010] No. 2836) Notice on the Structural Adjustment of the Department of Internal Control and Compliance (Document of The Export-Import Bank of China [2008] No. 111) A19 A20 A23 A26 A29 A31 B01 C03 D01 73

87 Sub-national ( including provincial, prefecture) (66) Notice on Issuing Guidelines for Internal management of the China Ex-Im Bank (2009 Revision) (Document of The Export-Import Bank of China [2009] No. 304) Guidance on the Country Risk Management for the Overseas Credit of China Ex-Im Bank (Document of The Export-Import Bank of China [2012] No. 165) Measures on the Country Risk Management of China Ex-Im Bank (Document of The Export-Import Bank of China [2013] No.51) Measures on the Country Risk Limits Management of China Ex-Im Bank (Document of The Export-Import Bank of China [2013] No. 80) Measures on the Post-loan Management of Overseas Loans of China Ex-Im Bank (Document of The Export-Import Bank of China[2013] No.322) Notice on Strengthening Management of Antiviral Drugs for AIDS Treatment (Document of Henan Provincial Health Bureau [2008] No. 70) Notice on Furthering Treatment Works of Serious AIDS Patients in Rural Areas, Notice on Issuing Implementation Plan for Experimental Institutions Engaged in Treatment of AIDS Patients by Antiviral Therapy with Second-line Drugs (Document of Henan Provincial Health Bureau [2008] No. 35) Notice on Conduction of Supervision of AIDS Treatment (Document of Henan Provincial Health Bureau [2008] No. 132) Notice on Conduction of AIDS Treatment by Assigning Doctors in City Contagious Disease Hospitals to Key Counties (Cities) (Document of Henan Provincial Health Bureau [2008] No.56) Notice on Implementing Classified Treatment System of AIDS Patients (Document of Henan Provincial Health Bureau [2008] No. 55) Notice on Issuing Evaluating Standards for Standardized Management of Antiviral Treatment of AIDS in Henan Province (Trial) (Document of Henan Provincial Health Bureau [2008] No. 54) Notice on Issuing Provisional Methods for Management of Treatment of Urban HIV/AIDS Patients in Henan Province (Document of Henan Provincial Health Bureau [2007] No.109) Notice on Implementation Plan to Expand AIDS Treatment by Antiviral Therapy with Second-line Drugs in Henan Province (Document of Henan Provincial Health Bureau [2008] No. 111) Notice on Standardized Flow Chart for AIDS Treatment in Rural Areas in Henan Province (Document of Henan Provincial Health Bureau [2007] No. 91) Notice of Authorizing Henan Clinical Center for AIDS Treatment to Manage Free AIDS Drugs (Document of Henan Provincial Health Bureau [2007] No.83) Notice on Conduction of AIDS Treatment by Antiviral Therapy with Second-line Drugs Distributed by the Working Office of B02 74

88 Ministry of Health (Document of Henan Provincial Health Bureau [2009] No. 62) The Twelfth Five-Year Development Plan for National Economic and Social Development of Qinghai Province The Provincial Committee of CPC of Qinghai Province and the People's Government of Qinghai Province, The New Urbanization Plan of Qinghai Province The Provincial Committee of CPC of Qinghai Province and the People's Government of Qinghai Province, On Accelerating the Cultural Reform and Development and the Construction of Cultural Province Planning of Main Functional Areas of Qinghai Province (Document of The People's Government of Qinghai Province [2014] No. 22) Implementation of some Public Fiscal Policies to pay attention to people's livelihood, increase public service level and promote social harmony (Document of The People's Government of Qinghai Province [2007] No.10) Implementing 60 Pubic Finance Policies (Document of The People's Government of Qinghai Province [2008] No.4) Implementing 60 Pubic Finance Policies (Document of The People's Government of Jiangxi Province [2009] No.9) Implementation Plan of Small-sum Guarantee Loans for Women in Gansu Province (Document of Gansu provincial women s Federation [2009] No. 97) B03 B05 B07 Notice on Regulating the Issues about the Administration of Fiscal Interest Subsidies to Small-sum Guarantee Loans for Women (Document of Gansu Provincial Finance Bureau [2010] No. 6) Notice on Further Regulating Women Micro-credit and Promoting Women Employment (Document of Gansu Provincial Human Resources and Social Protection [2010] No. 104) All-China Women's Federation, Notice on the Implementation of the Notice of Ministry of Finance, Ministry of Human Resource and Social Security, The People's Bank of China and All-China Women's Federation on Improving the Policy of Fiscal Interest Subsidies to Small-sum Guarantee Loans for Women and Promoting Women Employment and Entrepreneurship (Document [2009] No.24) Notice on Further Ensuring the Compulsory Education for the Children of Rural Migrant Workers in Cities (Document of Anhui Provincial Department of Education [2010] No.8 Further Strengthening the Training of Rural Migrant Workers (Document of General Office of the People's Government of Anhui Province [2010] No. 44) B08 75

89 Notice on Issuing the Notice of Department of Human Resource and Social Security of Anhui Province on Further Promoting the Local Employment of Rural Migrant Workers (Document of General Office of the People's Government of Anhui Province [2010] No.52) Standing Committee of the People's Congress of Anhui Province, Measures of Implementing the Law of Promotion of Employment of Anhui Province Opinions on the Efforts on Employment under Current Conditions (Document of The Provincial Committee of CPC of Anhui Province and the People's Government of Anhui Province [2009] No.7) Notice on the Implementation of the Interim Measures for the Transfer and Continuation of the Basic Pension Insurance Relations of Urban Employees (Document of Anhui Provincial Department of Finance, Anhui Provincial Department of Human Resource and Social Security [2010] No.26) Further Strengthening the Training of Rural Migrant Workers (Document of General Office of the People's Government of Anhui Province [2010] No.44) Further Strengthening Vocational Training to Promote Employment (Document of The People's Government of Ningxia Hui Autonomous Region [2011] No. 77) Notice on Further Optimizing Employment Environment for Transferred Rural Labor Force and Strengthening Management Services for Inter-provincial Transferred Employment (Document of The People's Government of Ningxia Hui Autonomous Region [2012] No.13) Policies Supporting the Development of Resettlement Enterprises (Document of The People's Government of Ningxia Hui Autonomous Region [2012] No.109) Implementation of State Council Employment Promotion Plan ( ) (Document of The People's Government of Ningxia Hui Autonomous Region [2012] No. 81) Notice on Issuing Ningxia Provincial Department of Human Resource and Social Security, On Further Improving Vocational Skills Training of Urban and Rural Labor Force to Promote Employment and Entrepreneurship (Document of General Office of the People's Government of Ningxia Hui Autonomous Region [2010] No. 106) Notice on the Vocational Training and Social Security of Ecological Immigrants (Document of General Office of the People's Government of Ningxia Hui Autonomous Region [2011] No.89) Opinions on Accelerating the Development of Domestic Service Industry to Promote Employment (Document of General Office of the People's Government of Ningxia Hui Autonomous Region [2011] No. 162) Notice on Forwarding Opinions on Training of Farmers and Other Documents (Document of General Office of the People's Government of Ningxia Hui Autonomous Region [2013] No. 22) B10 76

90 Notice on the Management of Human Resource Services and Related Issues (Document of Ningxia Provincial Department of Human Resource and Social Security [2011] No.107) Notice on Issuing the Implementation Plan on the Comprehensive Prohibition of Net-pen Fish Culture, Blocking Breeding and Cofferdaming Culture and the Water Pollution Control in Hengshui Lake (Document of The People's Government of Hengshui City, Hebei Province [2008] No. 5) Long-term Mechanism Construction of Hengshui Lake Conservation and Management (Document of General Office of the People's Government of Hengshui City, Hebei Province No.15) Notice on Forwarding the Report of Hengshui Lake Management Committee on Issues about Strengthening the Comprehensive Environmental Management of Lake District (Document of General Office of the People's Government of Hengshui City, Hebei Province [2007] No. 21) Notice on Issuing the Interim Measures for the Establishment and Improvement of Ecological Compensation Mechanism in Central Mountainous Areas (Document of The People's Government of Hainan Province [2008] No. 71) Notice on Establishing the Shanxi Province National Pilot Area for Comprehensive Reform of Resource-based Economy (Document of National Development and Reform Commission [2010] No. 2836) Measures of Implementing the Planning for Poyang Lake Ecological Economic Zone (Document of Jiangxi Provincial Government [2010] No. 28) The Twelfth Five-Year Development Plan for National Economic and Social Development of Jiangxi Province 18 Special Plans for Poyang Lake Ecological Economic Zone Interim Measures for the Administration of Provincial Special Funds of Guangdong Province (Document of The People's Government of Guangdong Province [2006] No. 37) Measures for the Administration of Provincial Financial Special Funds of Guangdong Province (Document of The People's Government of Guangdong Province [2013] No. 125) Guidance on Promoting the Pilot Program for the Corporate Governance Structure of Public Institutions (Document of Guangdong Provincial Office of Public Sector Reform [2011] No. 16) Interim Measures for Information Openness of Institution Realname System of Guangdong Province (Document of Guangdong Provincial Office of Public Sector Reform [2012] No. 21) Interim Measures for the Supervision and Administration after the Cancellation of the Annual Inspection for Public Institutions of Guangdong Province ((Document of Guangdong Provincial Office of Public Sector Reform [2012] No. 288) C01 C02 C03 C04 D03 D04 77

91 Interim Measures for the Administration of Real-name System of Provincial Authorities and Public Institutions of Guangdong Province ((Document of Guangdong Provincial Office of Public Sector Reform [2010] No. 41) Opinions on the Classification and Reform of Public Institutions of Guangdong Province (Document of The Provincial Committee of CPC of Guangdong Province and the People's Government of Guangdong Province [2010] No. 6) Notice on Issuing the Interim Measures for Government Procurement from Social Organizations (Document of The People's Government of Guangdong Province [2012] No. 48) Measures on the Implementation of Pilot Program for the Corporate Governance Structure of Public Institutions in Guangdong Province (Document of Guangdong Provincial Office of Public Sector Reform [2012] No. 168) The Overall Performance Evaluation Plan of Department of Ocean and Fisheries of Hainan Province, Detailed Regulation on Performance Evaluation of Regular Tasks in Department of Ocean and Fisheries of Hainan Province, Detailed Regulation on Performance Evaluation of Key Tasks in Department of Ocean and Fisheries of Hainan Province, Detailed Regulation on Organizational Performance Evaluation in Department of Ocean and Fisheries of Hainan Province, and Detailed Regulation on Individual Performance Evaluation in Department of Ocean and Fisheries of Hainan Province (Document of Department of Ocean and Fisheries of Hainan Province) Planning on the Construction and Enhancement of Henan Forestry Ecological Province ( ) (Document of Henan Provincial Government [2013] No. 42) Notice on the Working Arrangements about the Focus of Deepening Overall Urban-Rural Comprehensive Reform 2012 (Document of the Provincial Office of Urban-Rural Integration Reform [2012] No. 8) Notice on Conducting Rural Property Rights Arbitration in the City (Document of Chengdu Municipality [2013] No. 48) Notice on Issuing the Implementation Plan on Deepening Overall Urban-Rural Comprehensive Reform and Accelerating "Five Strategies for Prospering the City" 2012 (Document of the Provincial Office of Urban-Rural Integration Reform [2012] No. 2) Opinions on the Implementation of Coordination of Urban and Rural Areas of Yangling Demonstration Zone, 2012 (Document of Office of Yangling Demonstration Zone [2012] No. 15) Administration Committee of Yangling Demonstration Zone, The Standardization Development Strategy Outline of Yangling Demonstration Zone ( ) (Document of Office of Yangling Demonstration Zone [2011] No. 53) Notice on the Implementation Plan on Deepening Land Transfer (Document of Office of Yangling Demonstration Zone [2012] No. 39) D05 D06 D07 D08 78

92 Notice on Issuing the Measures on Implementing Agricultural Insurance in Hainan Province, 2014 (Document of General Office of the People's Government of Hainan Province [2014] No. 71) Notice on Issuing the Measures on Implementing Agricultural Insurance in Hainan Province, 2015 (Document of the People's Government of Hainan Province [2015] No. 144) Notice on Issuing the Measures on Implementing the Establishment of General Practitioner System of Hainan Province (Document of The People's Government of Hainan Province [2014] No. 65) D10 D11 D12 79

93 Annex 11: TCC5 Project Timeline Event Date Tenth Five-Year Plan ( ) 03/05/2001 Decision on Issues Perfecting the Socialist Market Economic System of the CPC s 10/11/2003 Third Plenum, 16 th central committee TCC5 Concept Review 09/08/2004 Eleventh Five-Year Plan ( ) 03/16/2006 TCC5 Effective 10/12/2006 Decision on Issues for Promoting Rural Reform and Development of the CPC s 10/12/2008 Third Plenum, 17 th central committee Mid-Term Review for TCC5 10/31/2008 TCC4 Close (original 12/31/2005) 12/31/2009 First Restructuring of TCC5 12/15/2010 Twelfth Five-Year Plan ( ) 03/16/2011 DFID Grant Closes 03/31/2011 Original close of TCC5 12/31/2011 Second Restructuring of TCC5 07/12/2013 Decision on Issues for Deepening Reforms of the CPC s Third Plenum, 18 th central 11/12/2013 committee TCC6 Effective 07/30/2014 Actual Close of TCC5 06/30/

94 MAP 81