FOR OFFICIAL USE ONLY Report No: RES57291 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT RESTRUCTURING PAPER ON A PROPOSED PROGRAM RESTRUCTURING OF YELLOW RIVER BASIN ECOLOGICAL PROTECTION AND ENVIRONMENTAL POLLUTION CONTROL PROGRAM APPROVED ON MARCH 31, 2022 TO THE PEOPLE'S REPUBLIC OF CHINA Environment, Natural Resources & The Blue Economy Global Practice East Asia And Pacific Region Regional Vice President: Manuela V. Ferro Country Director: Mara K. Warwick Regional Director: Anna Wellenstein Ann Jeannette Glauber, Maria Angelica Sotomayor Practice Manager: Araujo Task Team Leader(s): Jian Xie, Qi Tian, Xiawei Liao The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) ABBREVIATIONS AND ACRONYMS BPSG Basin Program Steering Group DLI Disbursement-Linked Indicators DLR Disbursement-Linked Results IBRD International Bank for Reconstruction and Development MOF Ministry of Finance NDRC National Development and Reform Commission PDO Program Development Objective PSG Program Steering Group PforRs program-for-results YRB Yellow River Basin YRCC Yellow River Conservancy Commission The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) DATA SHEET (Yellow River Basin Ecological Protection and Environmental Pollution Control Program - P172806) BASIC DATA Project ID Financing Instrument IPF Component P172806 Program-for-Results Financing No Approval Date Current Closing Date 31-Mar-2022 31-Dec-2027 Organizations Borrower Responsible Agency People's Republic of China Program Development Objective(s) To strengthen integrated water use efficiency, water pollution control, and ecosystem management, in selected regions of the Yellow River Basin OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Approval Effectiveness Closing Ln/Cr/TF Signing Date Commitment Disbursed Undisbursed Date Date Date 31-Mar- IBRD-93540 31-Dec-2027 380.00 0 380.00 2022 Policy Waiver(s) Does the Program require any waivers of Bank policies applicable to Program-for-Results operations? No Page 1 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) I. PROGRAM STATUS AND RATIONALE FOR RESTRUCTURING The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) 1. This restructuring paper proposes to make the following changes to the Yellow River Basin Ecological Protection and Environmental Pollution Control Program (the Program): changes to the basin-level program scope and reduction of the loan; closing date extension; implementation arrangements; Results Framework and Disbursement-Linked Results (DLRs). This is the first restructuring of the Program, as requested by a letter from the Ministry of Finance (MOF) of the People’s Republic of China, dated August 25, 2023. A. Program Status 2. Background. An International Bank for Reconstruction and Development (IBRD) loan for the Program in the amount of US$380 million was approved by the Board of Executive Directors on March 31, 2022, with a closing date of December 31, 2027. The Program Development Objective (PDO) is to strengthen integrated water use efficiency, water pollution control, and ecosystem management, in selected regions of the Yellow River Basin (YRB). This Program is structured as a program-for-results (PforR) operation comprising provincial programs to be implemented by Henan Province and Shaanxi Province, as well as a basin-level program to be implemented by YRCC under the guidance of the Program Steering Group (PSG) hosted in the Regional Development Department of the National Development and Reform Commission (NDRC), which is required to be established within 3 months after effectiveness. The Program has four results areas: (a) Results Area 1: Improving water use efficiency; (b) Resuts Area 2: Improving water quality; (c) Results Area 3: Improving ecosystem management; and (d) Results Area 4: Strengthening integration of ecosystem and water resources management into strategic planning. 3. Implementation Status. There have been delays in completing government approval procedures to enable the signing of the legal agreements and implementation has not started. Henan Province and Shaanxi Province, as well as the Yellow River Conservancy Commission (YRCC), have established relevant entities responsible for the implementation of the Program, at both the provincial level and sub-provincial level (except the Basin Program Steering Group (BPSG), which is proposed to be removed). The Foreign Capital Utilization Reports of Henan Province and Shaanxi Province have been approved by NDRC. Henan Province and Shaanxi Province are preparing their provincial Program Implementation Plans. YRCC is preparing the basin-level Program Implementation Plan incorporating changes reflected in this Restructuring Paper, which will be submitted to the NDRC for approval, upon their acceptance by the Bank. The legal agreements are thus expected to be signed following the approval of the proposed restructuring; the loan is expected to become effective soon thereafter. 4. Program Compliance and Loan Covenants  Environmental and Social Aspects. Implementation of Program activities has not yet started. There will be no legacy issues associated with the proposed changes in Program scope and reduction of the loan amount.  Fiduciary. There have not been any procurements or financial transactions at either the basin-level or the provincial level. There will be no legacy issues associated with the proposed changes in Program scope and the reduction of the loan amount for the Program.  Legal Covenants. None of the legal covenants is due. The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) B. Rationale for Restructuring and Risk Assessement 5. The proposed restructuring will adjust the Program scope, implementation arrangements, the loan closing date, DLRs at the basin-level, and the Results Framework, as summarized below. 6. Program Scope, Loan Amount, DLRs, and Results Framework. The Program scope and the allocated loan amount for the basin-level program are proposed to be reduced. YRCC was to carry out the following activities under the Program: (a) developing a monitoring system supported by a consumption-based water resources assessment in a pilot interprovincial sub-basin; (b) developing an integrated ecosystem and water resources management model for the YRB; (c) preparing a technical guideline for integrated ecosystem and water resources management in the YRB; and (d) training and capacity building on ecosystem and water resources management at the provincial and basin levels. Three changes to the basin-level program scope are proposed: (a) adjust the geographical scope of activity (a) above from an inter-provincial sub-basin to a selected large-scale irrigation scheme, as irrigation is the single largest water user in the YRB (i.e., accounting for nearly 70 percent of its total water use) to enhance the technical robustness of the monitoring system for consumption based water resource management; (b) drop activities (b) and (c) above from the Program because their results are associated with complex water allocation issues among provinces. The national government decided to exclude them from the anchored government program and postpone these two activities to beyond the Program’s implementation period; (c) include a new activity on ‘developing a technical guideline for evaluating water consumption based on remote sensing in the YRB’ under the Program, whose results would provide critical technical inputs to the integrated ecosystem and water resources management model for the YRB. Accordingly, it is proposed to reduce the loan financing for the basin-level results from US$6.5 million to US$1.5 million. The total loan amount is proposed to be reduced accordingly. Results indicators for the basin-level program and corresponding DLRs are proposed to be changed accordingly. 7. Program Implementation Arrangements. A BPSG was to be established under the YRCC to provide overall coordination and guidance on Program implementation. However, the MOF requested to remove BPSG from Program implementation arrangements for the following reasons: (a) a BPSG is not considered necessary for Program coordination due to the reduced program scope and loan amount for the basin-level program; and (b) the national PSG, which includes leaders from YRCC and Ministry of Water Resources (MWR), will be maintained to provide overall coordination and guidance for implementing the Program, including the two provincial programs and the basin-level program. The Basin Program Management Office within YRCC has been established and will be maintained and continue to be responsible for supporting the coordination, management, reporting, and supervision of the basin- level program activities. In addition, given the reduced scope of basin-level program activities, it is not considered necessary for the YRCC to consolidate the provincial Program Reports before their submission to the World Bank. 8. Loan Closing Date, Implementation Schedule, and Disbursement Schedule. The signing and effectiveness delays experienced to-date require the loan closing date be extended to ensure that all Program activities are completed with a five-year implementation schedule. The Program implementing agencies will provide the Bank with revised The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) Program implementation schedules that are consistent with the revised loan closing date; these will be reviewed and confirmed by the Bank. In addition, the Program disbursement schedule will need to be revised to be consistent with the revised implementation schedule. 9. Program Risks. The overall risk of the Program is currently rated Substantial. The following individual risks are rated Substantial: Sector Strategies and Policies; Technical Design of Program; Institutional Capacity for Implementation and Sustainability; Fiduciary; Environmental and Social; and Stakeholders. Program implementation towards achievement of the PDO will not be affected by the proposed changes to Program scope and loan reduction, as activities to improve water use efficiency, reduce water pollution, and improve ecosystem management in the two Program provinces remain unchanged. The proposed changes to the Program will not impact Program risks; as such, the current risk ratings are proposed to be maintained unchanged. II. DESCRIPTION OF PROPOSED CHANGES 10. Change in Program Scope. The following activities that were to be carried out by YRCC will be dropped from the Program: (a) developing a monitoring system supported by a consumption-based water resources assessment in a pilot interprovincial sub-basin; (b) developing an integrated ecosystem and water resources management model for the YRB; and (c) preparing a technical guideline for integrated ecosystem and water resources management in the YRB. The following activities are proposed to be included in the basin-level program: (a) developing a monitoring system supported by a consumption-based water resources assessment in a selected large-scale irrigation scheme; and (b) preparing a technical guideline for monitoring water consumption based on remote sensing in the Yellow River Basin. 11. Reduction of the Loan Amount. The loan amount is proposed to be changed from US$380 million to US$375 million in view of the changes to the Program Scope. The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) 12. Change in Implementation Arrangements. Two changes are proposed to the Program implementation arrangements: (a) removal of the BPSG; and (b) revision of the responsibilities of the Basin Program Management Office within YRCC to not include the consolidation of provincial Program Reports, which will be submitted directly to the World Bank by each of Henan Province and Shaanxi Province. 13. Change to Results Framework. Corresponding to abovementioned changes to the basin-level program activities, the end target for PDO indicator 4 is proposed to be revised from ‘YRCC issues a technical guideline for integrated ecosystem and water resources management in the YRB based on consumption-based water balance assessment and modeling’ to ‘YRCC has developed and adopted a technical guideline for evaluating water consumption based on remote sensing in the Yellow River Basin’. The latter, i.e., water consumption monitoring, will provide critical technical inputs to the former, i.e., water consumption based integrated ecosystem and water resources management. Changes to the Results Framework are reflected in Annex 1. 14. Change to the DLRs. The target values of the Disbursement-Linked Indicator (DLI)#4.2: Capacity of YRCC to support integrated ecosystem and water resources management of the Yellow River Basin are proposed to be revised to: (a) Year 2: YRCC has carried out an evaluation of the relationship among water withdrawal, water drainage and water consumption of a selected large-scale irrigation scheme and assessed the water consumption’s impacts on the mainstream of the Yellow River (Allocated Amount of US$1 million); and (b) Year 4: YRCC has developed and adopted a technical guideline for evaluating water consumption based on remote sensing in the Yellow River Basin (Allocated Amount of US$0.5 million). Achievement of the targets will be verified based on: (a) a technical assessment report that will evaluate the relationship among water withdrawal, drainage and water consumption by a large-scale irrigation scheme and assess the impact of water consumption on the Yellow River, based on a monitoring system developed during Program implementation, will be prepared by the YRCC and made available to the third-party verification agency; and (b) the technical guideline being reviewed and accepted by an Expert Panel organized by YRCC (through an acceptance letter) and is made available to the third-party verification agency. The Terms of Reference for these tasks, will also need to be acceptable to the Bank in form and substance. The completion time is indicative, and disbursements will be made to YRCC upon completion of each result. 15. Extension of the Closing Date. It is proposed to extend the closing date of the IBRD loan from December 31, 2027 to June 30, 2029. This will be the first extension of the closing date. The proposed deadline for withdrawal applications will be December 31, 2029. 16. Other Changes. Other changes include: (a) changes to the legal covenants in the legal agreements to reflect the revised implementation arrangements and the revised due date for the mid-term review from March 1, 2025, to December 31, 2026 (see Section IV Detailed Changes); and (b) changes to implementation schedule and disbursement estimates (see Section IV Detailed Changes). 17. Program Assessments. The existing Environmental and Social Systems Assessment, which was prepared and disclosed by appraisal, has been verified against the proposed changes to the Program and confirmed for its validity The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) since these changes will not bring substantive impacts to the assessment scope and risk rating. No additional update is needed. The Technical Assessment and the Fiduciary Systems Assessment for the Program remain unchanged. III. SUMMARY OF CHANGES Changed Not Changed Change in Program Scope ✔ Change in Results Framework ✔ Change in Loan Closing Date(s) ✔ Change in Disbursement Estimates ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Implementation Schedule ✔ Change in Implementing Agency ✔ Change in Program's Development Objectives ✔ Change in Cancellations Proposed ✔ Reallocation between and/or Change in DLI ✔ Change in Disbursements Arrangements ✔ Change in Systematic Operations Risk-Rating Tool ✔ (SORT) Change in Safeguard Policies Triggered ✔ Change in Technical Method ✔ Change in Fiduciary ✔ Change in Environmental and Social Aspects ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) OPS_DETAILEDCHANGES_COMPONENTS_TABLE OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/TF Status Closing Date Closing(s) Date Closing Date for Withdrawal Applications IBRD-93540 Not Effective 31-Dec-2027 30-Jun-2029 31-Dec-2029 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Year Current Proposed 2022 0.00 0.00 2023 95,000,000.00 0.00 2024 80,000,000.00 136,639,326.00 2025 70,000,000.00 82,105,378.00 2026 70,000,000.00 79,635,603.00 2027 60,000,000.00 76,619,693.00 2028 5,000,000.00 0.00 OPS_DETAILEDCHANGES_EA_TABLE OPS_DETAILEDCHANGES_LEGCOV_TABLE LEGAL COVENANTS Loan/Credit/TF Description Status Action Program Institutions (Program Steering Group at national level) Loan Agreement (LA), Schedule 2, Section I.B.1 (a): The Borrower shall by no later than three (3) months after the Effective Date, IBRD-93540 Not yet due No Change and thereafter maintain, and cause to be maintained the following entity with composition, powers, functions, staffing, facilities and other resources acceptable to the Bank: (i) the Program Steering Group chaired by NDRC and comprising The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) representatives of MWR, YRCC, other relevant agencies, Henan Province and Shaanxi Province, responsible for reviewing Program progress and results, and providing guidance on Program implementation. Program Institutions (Basin Program Steering Group and Basin Program Management Office) LA, Schedule 2, Section I.B.1 (b): The Borrower shall maintain, through MWR, the following entities with composition, powers, functions, staffing, facilities and other resources acceptable to the Bank: (i) the IBRD-93540 Not yet due Revised Basin Program Steering Group within YRCC responsible for guidance of the Borrower’s Respective Part of the Program; and (ii) the Basin Program Management Office within YRCC, responsible for supporting the coordination, management, reporting, and supervision of the Borrower’s Respective Part of the Program, and consolidating reporting to the Bank. Program Institutions (Basin PMO) LA, Schedule 2, Section I.B.1 (b): The Borrower shall maintain, through MWR, the following entity with composition, powers, functions, staffing, facilities and other resources Proposed NYD acceptable to the Bank: the Basin PMO within YRCC, responsible for supporting the coordination, management, reporting, and supervision of the Borrower's Respective Part of the Program. IBRD-93540 Mid-term Review Not yet due Revised LA, Schedule 2, Section III.2; PA, Schedule, Section III.2 : The Borrower, through YRCC, and the Program Implementing Entities, shall prepare, under terms of reference acceptable to the Bank, and furnish to the Bank no later than March 1, 2025, a consolidated mid-term review report for the The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) Program, summarizing the results of the monitoring and evaluation activities carried out from the inception of the Program, and setting out the measures recommended to ensure the efficient completion of the Program and to further the objectives thereof. Mid-term Review LA, Schedule 2, Section III.2; PA, Schedule, Section III.2 : The Borrower, through YRCC, and the Program Implementing Entities, shall prepare, under Proposed NYD terms of reference acceptable to the Bank, and furnish to the Bank no later than December 31, 2026, a consolidated mid-term review report for the Program. Program Implementation Plan LA, Schedule 2, Section I.B.4; PA, Schedule, Section I.B.3: The Borrower, through YRCC, and the Program Implementing Entities, shall IBRD-93540 Expected soon No Change apply, throughout the period of implementation of their Respective Parts of the Program, their respective Program Implementation Plan in a timely and efficient manner acceptable to the Bank. Program Action Plan LA, Schedule 2, Section I.B.2; PA, Schedule, Section I.B.2: The Borrower and the Program Implementing Entities shall: (a) undertake the actions set forth in the Program Action Plan; (b) not amend, revise or waive, nor IBRD-93540 allow to be amended, revised or waived, the Not yet due No Change provisions of the Program Action Plan, or any provision thereof, without the prior written agreement of the Bank; and (c) maintain policies and procedures adequate to enable it to monitor and evaluate, in accordance with guidelines acceptable to the Bank, the implementation of the Program Action Plan. The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) Program Institutions (provincial level) Program Agreement (PA), Schedule, Section I.B.1: The Program Implementing Entities shall maintain, and cause to be maintained, the following entities, with composition, powers, functions, staffing, facilities and IBRD-93540 other resources acceptable to the Bank: (a) Not yet due No Change the Provincial Program Steering Group; (b) the Provincial Program Management Office; (c) a leading group in each of the Demonstration Sub-provincial Entities; (d) a management office in each of the Demonstration Sub-provincial Entities; and (e) an expert group. Verification Agencies LA, Schedule 2, Section III.3; PA, Schedule, Section III.4: The Borrower, through YRCC, and the Program Implementing Entities, shall, not later than three (3) months after the Effective Date, hire, and thereafter IBRD-93540 maintain, throughout the period of Program Not yet due No Change implementation, verification agent(s) having experience and qualifications in the relevant technical fields, acceptable to the Bank, and under terms of reference, including a time- table and adequate budget for its activities, acceptable to the Bank, to monitor and . verify the achievement of the DLRs. The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) ANNEX 1: RESULTS FRAMEWORK . . Results framework Program Development Objectives(s) To strengthen integrated water use efficiency, water pollution control, and ecosystem management, in selected regions of the Yellow River Basin Program Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 To improve integrated water use efficiency, water pollution control, and ecosystem management 1. Agricultural water Henan: 2.06; Shaanxi: Henan: 2.14; Shaanxi: Henan: 2.23; Shaanxi: Henan: 2.31; Shaanxi: Henan: 2.40; Shaanxi: Henan: 2.49; Shaanxi: productivity increased (Text) 1.50 1.60 1.70 1.90 2.00 2.20 Rationale: Action: This indicator has been The end target date of this indicator will change from December 31, 2027 to December 31, 2028 Revised In Henan (Metric ton) 2.06 2.14 2.23 2.31 2.40 2.49 Rationale: Action: This indicator has The end target date of this indicator will change from December 31, 2027 to December 31, 2028 been Revised In Shaanxi (Metric ton) 1.50 1.60 1.70 1.90 2.00 2.20 Page 12 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Rationale: Action: This indicator has The end target date of this indicator will change from December 31, 2027 to December 31, 2028 been Revised 2. Pollutant loads reduced 0.00 854.66 1,193.37 1,537.76 1,861.42 553.61 (Tons/year) Rationale: Action: This indicator has been The end target date of this indicator will change from December 31, 2027 to December 31, 2028 Revised 3. Reduction of soil erosion per 0.00 80.00 170.00 270.00 370.00 480.00 km2 (Tons/year) Rationale: Action: This indicator has been The end target date of this indicator will change from December 31, 2027 to December 31, 2028 Revised YRCC has carried out an evaluation of the relationship among water withdrawal, water YRCC has developed and YRCC has developed and Capacity of YRCC to 4. Capacity of YRCC to support drainage and water adopted a technical adopted a technical support integrated integrated ecosystem and consumption of a guideline for evaluating guideline for evaluating ecosystem and water water resources management selected large-scale water consumption water consumption based resources management of of the YRB (Text) irrigation scheme and based on remote sensing on remote sensing in the the YRB not developed assessed the water in the Yellow River Basin Yellow River Basin consumption’s impacts on the mainstream of the Yellow River Page 13 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Rationale: YRCC was to carry out the following activities under the Program: (a) developing a monitoring system supported by a consumption-based water resources assessment in a pilot interprovincial sub-basin; (b) developing an integrated ecosystem and water resources management model for the YRB; (c) preparing a technical guideline for integrated ecosystem and water resources management in the YRB; and (d) training and capacity building on ecosystem and water resources management at the provincial and basin levels. Three changes to the basin-level Program Scope are proposed: (a) adjust the geographical scope of activity (a) above from an inter-provincial sub-basin to a selected large-scale irrigation scheme, as irrigation is the single largest water user in the YRB (i.e., Action: This indicator has been accounting for nearly 70 percent of its total water use) to enhance the technical robustness of the monitoring system for consumption based water resource Revised management; (b) drop activities (b) and (c) above from the Program because their results are associated with complex water allocation issues among provinces. The national government decided to exclude them from the anchored government program and postpone these two activities to beyond the Program’s implementation period; (c) include a new activity on ‘developing a technical guideline for evaluating water consumption based on remote sensing in the YRB’ under the Program, whose results would provide critical technical inputs to the integrated ecosystem and water resources management model for the YRB. Furthermore, the end target date of this indicator will change from December 31, 2027 to December 31, 2028. PDO Table SPACE Intermediate Results Indicators by Result Areas RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Improving water use efficiency 1. Areas with improved agricultural water 0.00 13,600.00 28,850.00 44,100.00 55,600.00 62,000.00 management (Hectare(Ha)) Rationale: Action: This indicator has been The end target date of this indicator will change from December 31, 2027 to December 31, 2028 Revised Page 14 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 2. Target Value Allocation Plans agreed and implemented in Henan: 0 Shaanxi: 0 Henan: 3 Shaanxi: 2 Henan: 0 Shaanxi: 0 Henan: 1 Shaanxi: 0 Henan: 2 Shaanxi: 1 Henan: 3 Shaanxi: 2 demonstration sub-basins (Text) Rationale: Action: This indicator has been The end target date of this indicator will change from December 31, 2027 to December 31, 2028 Revised 3. Women leadership in WUAs 16.00 22.00 27.50 32.50 37.50 40.00 (Percentage) Rationale: Action: This indicator has been The end target date of this indicator will change from December 31, 2027 to December 31, 2028 Revised Improving water quality 4. Wastewater treatment plants upgraded or built 0.00 4.00 11.00 15.00 19.00 21.00 (Number) Rationale: Action: This indicator has been The end target date of this indicator will change from December 31, 2027 to December 31, 2028 Revised 5. Rural households connected to decentralized wastewater 0.00 4,266.00 9,398.00 14,248.00 18,514.00 21,612.00 treatment facilities (Number) Rationale: Action: This indicator has been The end target date of this indicator will change from December 31, 2027 to December 31, 2028 Revised Page 15 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 6. Medium and large livestock farms equipped with manure 0.00 46.00 96.00 145.00 191.00 238.00 treatment facilities (Number) Rationale: Action: This indicator has been The end target date of this indicator will change from December 31, 2027 to December 31, 2028. Revised Improving ecosystem management 7. Area of ecosystems restored (forests, terracing, wetlands) 0.00 15,734.26 30,221.52 42,044.78 52,583.04 52,583.04 (Hectare(Ha)) Rationale: Action: This indicator has been The end target date of this indicator will change from December 31, 2027 to December 31, 2028. Revised Area of forests restored 0.00 15,214.25 29,161.50 40,575.75 50,725.00 50,725.00 (Hectare(Ha)) Rationale: Action: This indicator has The end target date of this indicator will change from December 31, 2027 to December 31, 2028. been Revised Area of terracing restored 0.00 329.51 641.02 917.53 1,177.04 1,177.04 (Hectare(Ha)) Page 16 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Rationale: Action: This indicator has The end target date of this indicator will change from December 31, 2027 to December 31, 2028. been Revised Area of wetlands restored 0.00 190.50 419.00 551.50 681.00 681.00 (Hectare(Ha)) Rationale: Action: This indicator has The end target date of this indicator will change from December 31, 2027 to December 31, 2028. been Revised 8. CO2eq reduction by the forests restored through the 0.00 54,771.00 104,981.00 147,358.00 182,610.00 182,610.00 Program (Metric ton) Rationale: Action: This indicator has been The end target date of this indicator will change from December 31, 2027 to December 31, 2028. Revised Strengthening integration of ecosystem and water resources management into strategic planning Sanmenxia Municipality The Provincial The Provincial approves three and each Departments of Water Departments of Water of Xianyang and Resources at Henan and Resources at Henan and 9. Integrated ecosystem and Integrated ecosystem and Tongchuan Shaanxi Provinces each Shaanxi each approve water resources management water resources Municipalities approve approve one integrated N/A one technical guideline N/A process developed at the management plans do not one integrated ecosystem and water for integrated provincial level (Text) exist ecosystems and water resources management ecosystem and water resources management plan (for the YRB in resources management plan for demonstration Henan, and the Wei at provincial level sub-basins River Basin in Shaanxi) Page 17 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Rationale: Action: This indicator has been The end target date of this indicator will change from December 31, 2027 to December 31, 2028. Revised 10. Training and capacity building implemented at basin, 0.00 800.00 1,600.00 2,400.00 3,200.00 4,000.00 provincial, municipal and county levels (Number) Rationale: Action: This indicator has been The end target date of this indicator will change from December 31, 2027 to December 31, 2028. Revised Among which women 0.00 45.00 45.00 45.00 45.00 45.00 (Percentage) Rationale: Action: This indicator has The end target date of this indicator will change from December 31, 2027 to December 31, 2028. been Revised IO Table SPACE Disbursement Linked Indicators Matrix DLI IN01324345 ACTION DLI 1 1a. Areas with improved agricultural water management (Henan) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Text 55,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Page 18 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) Baseline 0 ha US$1,850 per hectare with improved 2024 7200 ha 13,320,000.00 agricultural water management US$1,850 per hectare with improved 2025 8850 ha (accumulated: 16,050 ha) 16,372,500.00 agricultural water management US$1,850 per hectare with improved 2026 8850 ha (accumulated: 24,900 ha) 16,372,500.00 agricultural water management US$1,850 per hectare with improved 2027 5100 ha (accumulated: 30,000 ha) 9,435,000.00 agricultural water management 2028 0 ha (accumulated: 30,000 ha) 0.00 N/A 2029 0 ha (accumulated: 30,000 ha) 0.00 N/A DLI IN01324346 ACTION DLI 2 2a. Pollutant loads reduced (Henan) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Metric ton 30,297,300.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 2024 0.00 0.00 US$15,000 per ton of COD reduced 2025 58.66 879,900.00 US$15,000 per ton of COD reduced 2026 397.37 5,960,550.00 US$15,000 per ton of COD reduced 2027 475.76 7,136,400.00 US$15,000 per ton of COD reduced Page 19 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) 2028 534.42 8,016,300.00 US$15,000 per ton of COD reduced 2029 553.61 8,304,150.00 US$15,000 per ton of COD reduced DLI IN01324347 ACTION DLI 3 3a. Area of ecosystems restored (forests, terracing, wetlands) (Henan) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Text 74,031,900.00 0.00 Period Value Allocated Amount (USD) Formula Baseline Forest: 0 ha; Terracing: 0 ha; Wetlands: 0 ha. US$2,250 per hectare of forest restored; US$16,800 per hectare of 2024 Forest: 8865 ha; Terracing: 123 ha; Wetlands: 75 ha 25,830,150.00 terracing restored; US$50,900 per hectare of wetland restored US$2,250 per hectare of forest Forest: 7598 ha (Accumulated: 16463 ha); Terracing: restored; US$16,800 per hectare of 2025 24,611,200.00 105 ha (Acc: 228 ha); Wetlands: 113 ha (Acc: 188 ha) terracing restored; US$50,900 per hectare of wetland restored US$2,250 per hectare of forest Forest: 5065 ha (Accumulated: 21528 ha); Terracing: restored; US$16,800 per hectare of 2026 13,437,550.00 70 ha (Acc: 298 ha); Wetlands: 17 ha (Acc: 205 ha) terracing restored; US$50,900 per hectare of wetland restored US$2,250 per hectare of forest Forest: 3800 ha (Acc: 25328 ha); Terracing: 53 ha restored; US$16,800 per hectare of 2027 10,153,000.00 (Acc: 351 ha); Wetlands: 14 ha (Acc: 219 ha) terracing restored; US$50,900 per hectare of wetland restored Forest: 0 ha (Acc: 25328 ha); Terracing: 0 ha (Acc: 2028 0.00 N/A 351 ha); Wetlands: 0 ha (Acc: 219 ha) Page 20 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) Forest: 0 ha (Acc: 25328 ha); Terracing: 0 ha (Acc: 2029 0.00 N/A 351 ha); Wetlands: 0 ha (Acc: 219 ha) DLI IN01324348 ACTION DLI 4 4.1a Integrated ecosystem and water resources management process developed at the provincial level (Henan) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Text 26,920,800.00 0.00 Period Value Allocated Amount (USD) Formula Integrated ecosystem and water resources Baseline management plans do not exist Sanmenxia Municipality has approved integrated 2024 ecosystem and water resources management plans 12,000,000.00 US$4,000,000 per plan approved for each of the three demonstration sub-basins 2025 N/A 0.00 N/A Provincial Department of Water Resources has 2026 approved one technical guideline for integrated 4,000,000.00 Yes/No ecosystem and water resources management Provincial Department of Water Resources has approved one integrated ecosystem and water 2027 10,920,800.00 Yes/No resources management plan for the Yellow River Basin in Henan province 2028 N/A 0.00 N/A 2029 N/A 0.00 N/A Page 21 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) DLI IN01324349 ACTION DLI 5 4.2 Capacity of YRCC to support integrated ecosystem and water resources management of the YRB Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 6,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Capacity of YRCC to support integrated ecosystem Baseline and water resources management of the YRB not developed 2024 N/A 0.00 N/A YRCC has piloted an operational water resources management and real-time monitoring system 2025 2,600,000.00 Yes/No supported by a consumption-based water resources assessment in a pilot interprovincial sub-basin YRCC has developed an integrated ecosystem and water resources management model for the YRB 2026 that optimizes water allocation for multiple 2,600,000.00 Yes/No purposes, including ecological flows, environment carrying capacity, and economic sectors 2027 N/A 0.00 N/A YRCC has issued a technical guideline for integrated ecosystem and water resources management in the 2028 1,300,000.00 Yes/No YRB based on consumption based water balance assessment and modeling 2029 N/A 0.00 N/A Action: This DLI has been Revised. See below. Page 22 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) DLI IN01330032 ACTION DLI 5 4.2 Capacity of YRCC to support integrated ecosystem and water resources management of the YRB Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 1,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Capacity of YRCC to support integrated ecosystem Baseline and water resources management of the YRB not developed 2024 N/A 0.00 N/A YRCC has carried out an evaluation of the relationship among water withdrawal, water drainage and water consumption of a selected 2025 1,000,000.00 Yes/No large-scale irrigation scheme and assessed the water consumption’s impacts on the mainstream of the Yellow River 2026 N/A 0.00 N/A YRCC has developed and adopted a technical 2027 guideline for evaluating water consumption based 500,000.00 Yes/No on remote sensing in the Yellow River Basin 2028 N/A 0.00 N/A 2029 N/A 0.00 N/A Page 23 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) DLI IN01324350 ACTION DLI 6 1b. Areas with improved agricultural water management (Shaanxi) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Text 33,600,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0 ha US$1,050 per hectare with improved 2024 6400 ha 6,720,000.00 agricultural water management US$1,050 per hectare with improved 2025 6400 ha (accumulated: 12,800 ha) 6,720,000.00 agricultural water management US$1,050 per hectare with improved 2026 6400 ha (accumulated: 19,200 ha) 6,720,000.00 agricultural water management US$1,050 per hectare with improved 2027 6400 ha (accumulated: 25,600 ha) 6,720,000.00 agricultural water management US$1,050 per hectare with improved 2028 6400 ha (accumulated: 32,000 ha) 6,720,000.00 agricultural water management 2029 0 ha (accumulated: 32,000 ha) 0.00 N/A DLI IN01324351 ACTION DLI 7 2b. Pollutant loads reduced (Shaanxi) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Metric ton 59,715,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 Page 24 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) 2024 100.00 1,500,000.00 US$15,000 per ton of COD reduced 2025 696.00 10,440,000.00 US$15,000 per ton of COD reduced 2026 796.00 11,940,000.00 US$15,000 per ton of COD reduced 2027 1,062.00 15,930,000.00 US$15,000 per ton of COD reduced 2028 1,327.00 19,905,000.00 US$15,000 per ton of COD reduced 2029 0.00 0.00 N/A DLI IN01324352 ACTION DLI 8 3b. Area of ecosystems restored (forests, terracing, wetlands) (Shaanxi) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Text 73,634,014.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0 ha US$1,750 per hectare of forest Forest: 6349.25 ha; Terracing: 206.51 ha; Wetlands: restored; US$16,600 per hectare of 2024 18,408,503.50 115.5 ha terracing restored; US$33,500 per hectare of wetland restored US$1,750 per hectare of forest Forest: 6349.25 ha (Accumulated: 12698.5 ha); restored; US$16,600 per hectare of 2025 Terracing: 206.51 ha (Acc: 413.02 ha); Wetlands: 18,408,503.50 terracing restored; US$33,500 per 115.5 ha (Acc: 231 ha) hectare of wetland restored Forest: 6349.25 ha (Accumulated: 19047.75 ha); US$1,750 per hectare of forest 2026 Terracing: 206.51 ha (Acc: 619.53 ha); Wetlands: 18,408,503.50 restored; US$16,600 per hectare of 115.5 ha (Acc: 346.5 ha) Page 25 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) terracing restored; US$33,500 per hectare of wetland restored US$1,750 per hectare of forest Forest: 6349.25 ha (Accumulated: 25397 ha); restored; US$16,600 per hectare of 2027 Terracing: 206.51 ha (Acc: 826.04 ha); Wetlands: 18,408,503.50 terracing restored; US$33,500 per 115.5 ha (Acc: 462 ha) hectare of wetland restored Forest: 0 ha (Accumulated: 25397 ha); Terracing: 0 2028 0.00 N/A ha (Acc: 826.04 ha); Wetlands: 0 ha (Acc: 462 ha) Forest: 0 ha (Accumulated: 25397 ha); Terracing: 0 2029 0.00 N/A ha (Acc: 826.04 ha); Wetlands: 0 ha (Acc: 462 ha) DLI IN01324353 ACTION DLI 9 4.1b Integrated ecosystem and water resources management process developed at the provincial level (Shaanxi) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Text 19,800,986.00 0.00 Period Value Allocated Amount (USD) Formula Integrated ecosystem and water resources Baseline management plans do not exist Each of Xianyang Municipality and Tongchuan Municipality have approved an integrated 2024 ecosystem and water resources management plan 8,000,000.00 US$4,000,000 per plan approved for demonstration sub-basins within their respective jurisdiction. 2025 N/A 0.00 N/A Provincial Department of Water Resources has 2026 approved one technical guideline for integrated 4,000,000.00 Yes/No ecosystem and water resources management. Page 26 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) Provincial Department of Water Resources has approved one integrated ecosystem and water 2027 7,800,986.00 Yes/No resources management plan for the Wei River Basin in Shaanxi. 2028 N/A 0.00 N/A 2029 N/A 0.00 N/A Page 27 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) ANNEX 2: PROGRAM ACTION PLAN . . PAP_NOT_CHANGE_TBL Action Description Source DLI# Responsibility Timing Completion Measurement Provide regular training for the staff maintaining the town and village sewage treatment facilities focusing on OHS and other Semiannual progress reports are E&S impacts submitted to the Bank, including associated with Environmental and Social Provincial and/or the implementation of related poor O&M Systems municipal PMOs Recurrent Semi-Annually trainings Establish monitoring and reporting mechanisms for meaningful public participation and GRM, and Semi-annual reports are strengthen submitted to the Bank, including information and information on land documentation selection/screening, or approvals, management information disclosure records during the and public participation, GRM Program social risk Environmental and Social Provincial and/or establishment and operation, and management Systems municipal PMOs Recurrent Semi-Annually support to vulnerable groups Prepare and issue guidance note on evaluation criteria and weightings for bid evaluation of contracts where Within six comprehensive BPMO, provincial months from scoring method is and/or municipal the date of Preparation and issuance of used Fiduciary Systems PMOs Other effectiveness guidance on evaluation criteria Provide detailed procurement related complaint handling procedures to supplement the general Standard language on description in Within six procurement related complaint SBDs for BPMO, provincial months from handling procedures to be added preparation of and/or municipal the date of into issued procurement procurement Fiduciary Systems PMOs Other effectiveness documents Page 28 of 29 The World Bank Yellow River Basin Ecological Protection and Environmental Pollution Control Program (P172806) documents under the Program. Develop and issue a guideline about the preparation Before the first and presentation Program of Program BPMO, provincial financial financial and/or municipal statements year Finalized official guideline statements Fiduciary Systems PMOs Other end provided to the Bank Develop an audit Before the first Terms and Program Reference for the BPMO, provincial financial Program financial and/or municipal statements TORs shared and approved by the statements audit Fiduciary Systems PMOs Other audit Bank. . Page 29 of 29