Document of The World Bank FOR OFFICIAL USE ONLY Report No: ICR00005911 IMPLEMENTATION COMPLETION AND RESULTS REPORT IBRD-85120 ON AN INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT LOAN IN THE AMOUNT OF US$100 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR THE HUAINAN MINING AREA REHABILITATION PROJECT July 18, 2023 Urban, Resilience and Land Global Practice East Asia and Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective December 31, 2022) Currency Unit = Chinese Yuan (CNY) CNY 1 = US$0.1435 US$1 = CNY 6.9646 FISCAL YEAR January 1 – December 31 Regional Vice President: Manuela V. Ferro Country Director: Mara K. Warwick Regional Director: Anna Wellenstein Practice Manager: Yoonhee Kim Task Team Leader: Minghe Tao ICR Main Contributor: Eddie Ke-Siong Hum ABBREVIATIONS AND ACRONYMS BOD Biochemical Oxygen Demand COD Chemical Oxygen Demand EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return ENPV Economic Net Present Value ESMP Environmental and Social Management Plan FM Financial Management FSR Feasibility Study Report GDP Gross Domestic Product ha Hectare HAWIC Huainan Agriculture and Water Investment Company HMCMSMO Huainan Municipality Coal Mining Subsidence Management Office HMDRC Huainan Municipality Development Reform Commission HMURCB Huainan Municipal Urban and Rural Construction Bureau HMG Huainan Municipal Government IBRD International Bank for Reconstruction and Development ICR Implementation Completion and Results Report IRI Intermediate Results Indicator ISR Implementation Status and Results Report M&E Monitoring and Evaluation NGO Nongovernmental Organization MTR Midterm Review O&M Operation and Maintenance PAD Project Appraisal Document PDO Project Development Objective PIU Project Implementation Unit PMO Project Management Office PPP Public-Private Partnership RAP Resettlement Action Plan RF Results Framework SSA Shuangengshan Scenic Area SSADMP SSA Development Master Plan TN Total Nitrogen TP Total Phosphate US$ United Stated Dollar WWTP Wastewater Treatment Plant Contents DATA SHEET .......................................................................................................................... 1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 5 A. CONTEXT AT APPRAISAL .........................................................................................................5 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION ................................................................9 II. OUTCOME .................................................................................................................... 15 A. RELEVANCE OF PDOs ............................................................................................................ 15 B. ACHIEVEMENT OF PDOs (EFFICACY) ...................................................................................... 16 C. EFFICIENCY ........................................................................................................................... 22 D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 23 E. OTHER OUTCOMES AND IMPACTS ......................................................................................... 24 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 25 A. KEY FACTORS DURING PREPARATION ................................................................................... 25 B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 27 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 28 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 28 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 29 C. BANK PERFORMANCE ........................................................................................................... 31 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 32 V. LESSONS AND RECOMMENDATIONS ............................................................................. 32 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 34 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 51 ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 53 ANNEX 4. EFFICIENCY ANALYSIS ........................................................................................... 54 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 57 ANNEX 6. SUPPORTING DOCUMENTS .................................................................................. 60 ANNEX 7. PROJECT PHOTOS ................................................................................................. 61 ANNEX 8. PROJECT MAP ...................................................................................................... 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name P133000 Huainan Mining Area Rehabilitation Project Country Financing Instrument China Investment Project Financing Original EA Category Revised EA Category Full Assessment (A) Full Assessment (A) Organizations Borrower Implementing Agency People's Republic of China Huainan Project Management Office Project Development Objective (PDO) Original PDO The project development objective is to remediate and create a public space at the JiuDa mining site in Huainan city. Page 1 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 100,000,000 55,427,572 55,427,572 IBRD-85120 Total 100,000,000 55,427,572 55,427,572 Non-World Bank Financing 0 0 0 Borrower/Recipient 68,400,000 35,480,000 40,880,000 Total 68,400,000 35,480,000 40,880,000 Total Project Cost 168,400,000 90,907,572 96,307,572 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 11-May-2015 16-Sep-2015 15-Oct-2018 30-Jun-2021 31-Dec-2022 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 22-Sep-2020 30.94 Change in Results Framework Change in Components and Cost Change in Loan Closing Date(s) Cancellation of Financing Reallocation between Disbursement Categories Change in Institutional Arrangements Change in Implementation Schedule 22-Nov-2021 44.14 Change in Results Framework Change in Safeguard Policies Triggered 02-Jun-2022 48.47 Change in Results Framework Change in Loan Closing Date(s) KEY RATINGS Outcome Bank Performance M&E Quality Satisfactory Satisfactory Substantial Page 2 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 27-Jul-2015 Satisfactory Satisfactory 0 02 23-Mar-2016 Satisfactory Satisfactory 0 03 08-Sep-2016 Satisfactory Satisfactory 2.00 04 23-Mar-2017 Satisfactory Satisfactory 8.00 05 25-Sep-2017 Satisfactory Satisfactory 13.74 06 13-Feb-2018 Satisfactory Moderately Satisfactory 19.46 07 04-Sep-2018 Moderately Satisfactory Moderately Unsatisfactory 19.46 Moderately 08 08-Feb-2019 Unsatisfactory 22.72 Unsatisfactory Moderately 09 16-Sep-2019 Unsatisfactory 27.02 Unsatisfactory Moderately 10 12-Apr-2020 Unsatisfactory 30.94 Unsatisfactory 11 30-Nov-2020 Moderately Satisfactory Moderately Satisfactory 30.94 12 19-Jun-2021 Satisfactory Moderately Satisfactory 40.98 13 28-Dec-2021 Satisfactory Moderately Satisfactory 44.14 14 30-Jun-2022 Satisfactory Satisfactory 48.47 SECTORS AND THEMES Sectors Major Sector/Sector (%) Agriculture, Fishing and Forestry 40 Other Agriculture, Fishing and Forestry 40 Public Administration 3 Other Public Administration 3 Page 3 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Transportation 7 Urban Transport 7 Water, Sanitation and Waste Management 50 Other Water Supply, Sanitation and Waste 50 Management Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Urban and Rural Development 30 Urban Development 30 Urban Infrastructure and Service Delivery 30 Environment and Natural Resource Management 69 Environmental Health and Pollution Management 69 Air quality management 23 Water Pollution 23 Soil Pollution 23 ADM STAFF Role At Approval At ICR Regional Vice President: Axel van Trotsenburg Manuela V. Ferro Country Director: Bert Hofman Mara K. Warwick Director: Ede Jorge Ijjasz-Vasquez Anna Wellenstein Practice Manager: Abhas Kumar Jha Yoonhee Kim Task Team Leader(s): Xiaokai Li Minghe Tao ICR Contributing Author: Eddie Ke-Siong Hum Page 4 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Context 1. Country context. At appraisal, China had seen a remarkable record of economic growth since the 1980s, lifting tens of millions of people out of poverty and making the country the second largest economy in the world. China’s growth had been largely based on manufacturing and export, which were resource intensive with massive environmental consequences: air pollution, water pollution, food and water shortages, plastic pollution, and biodiversity loss. Going forward, the country wished to vigorously address issues of natural resource depletion, pollution, and environmental degradation and create a more sustainable economy. During the process of industrialization, many brownfields had been created around the country, covering large areas of land in different regions of China and often highly contaminated, mainly due to mining and industrial pollution. At appraisal, many of these brownfields were closed and located within cities’ built-up areas, as a result of the rapid urbanization in the country. Because of the environmental damages caused by land subsidence in these urban areas, and the conflict with ongoing urban expansion, there was an increasing need to clean up and redevelop these contaminated and degraded areas. At the national level, several ministries were involved in industrial brownfield management, including the Ministry of Land Resources, Ministry of Environmental Protection, Ministry of Housing and Urban-Rural Development, and National Development and Reform Commission. 2. Sectoral context. Huainan Municipality (City) is located in the north of Anhui Province at the middle reach of the Huai River. At appraisal, it had a population of 2.45 million, with 1.18 million living in urban areas. The gross domestic product (GDP) per capita was US$5,400 (2012), which ranked fifth among the 15 municipalities in the province. However, the development level in different parts of the city was rather uneven. Huainan Municipality was a typical example of China’s brownfield issue, with around 200 km2 of former mining subsidence areas, accounting for about 7 percent of the municipal land area. This city had a history of coal mining that goes back to 1903. Coal mining had fueled the local economy but also led to large areas of land subsidence that caused substantial ecological and environmental problems, such as water and soil erosion, aggravation of land degradation, and declined soil quality. 3. The JiuDa mining site was located in the Shuangengshan Scenic Area (SSA) in Datong District, a district within Huainan Municipality with income levels at only 40 percent of the city average. It was a 930 ha area located within the central city and had been deserted for over two decades. Over the years, it had become a dilapidated wasteland, containing the Datong municipal solid waste dumpsite—which was originally utilized for domestic solid waste disposal from 1984 to 2009 but had expanded into an open dumpsite covering over 11 ha and containing about 800,000 m3 of waste—and 22 other dumpsites and characterized by low vegetation coverage, eroded and contaminated soil, water ponds in subsided pieces of land, wastewater pollution, incomplete and inadequate silted drainage channels, deserted buildings, and inadequate access roads. The area faced severe pollution and flooding risks and poor connectivity, negatively affecting the health and well-being of the local communities as well as the land value of neighboring areas. The SSA Development Master Plan 2020 (SSADMP), developed by the Huainan Municipal Government (HMG) in 2010, envisaged remediating and redeveloping the entire JiuDa mining site into a green buffer zone where people can recreate and undertake social and economic activities. Page 5 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) 4. However, the remediation and redevelopment of the JiuDa mining sites faced several challenges common to brownfield remediation in China. First, there was a lack of sustainable institutional and financing mechanisms for the necessary costly remediation actions and subsequent operation and maintenance (O&M). Second, there was a notable absence of established procedures and standards for conducting site risk assessments and managing remediation activities, including which technologies to be used for remediation activities. Third, there was a lack of regulations that clearly outlined the responsibilities and rights of responsible parties, especially in cases where historical or other factors made it difficult to apply the ‘polluters pay principle’.1 Last, there was a lack of experience in strategic planning to align remediation approaches with the future utilization of the remediated land and therefore detailed implementation and investment plans in the SSADMP 2020. 5. Government strategy. While a regulatory framework for brownfield remediation and redevelopment was yet to be developed at the national level, some provinces and municipalities had rolled out policies and regulations and started to clean up polluted industrial sites. The HMG issued the municipal decree ‘Coal Mining Subsidence Area Rehabilitation and Utilization’ in 2003 and established the Huainan Coal Mining Subsidence Comprehensive Remediation Office in 2009. Further, a ‘Comprehensive Plan for Coal-mining Subsidence Areas in Huainan (2009–2020)’ was developed in 2009. The abovementioned SSADMP 2020 further operationalized the goals of these decrees and agencies. 6. Rationale for World Bank support. The Chinese Government highly valued the World Bank’s experience in mining subsidence area remediation and redevelopment around the world, particularly because this project was the first of its kind in China. Furthermore, the World Bank had conducted two studies in 2010 that provided it with valuable insight into actions needed in China. The first study2 assessed China’s progress in brownfield remediation and redevelopment and the challenges faced by its various levels of government. The second study3 examined international experience, policies, and regulatory frameworks related to brownfield management, offering valuable insights, lessons learned, and recommendations for China’s context. The Government appreciated this analytical work and looked to replicate the experience from this project in other parts of China. 7. Higher-level objectives to which the project contributed. Huainan Municipality was selected as one of the first pilot cities for the ‘National Sustainable Development Planning for Resource-Based Cities (2013–2020)’. It was the first national-level plan in China to guide the sustainable development of resource-dependent cities. The project was therefore a high priority for both the national and local governments and fully aligned with national strategies due to its sustainability focus. The project also supported the two strategic themes of the World Bank Group’s Country Partnership Strategy for China for FY2013–FY2016 (Report No. 67566-CN): Supporting Greener Growth and Promoting More Inclusive Development. It did so by, respectively, helping convert a wasteland into a green zone and providing skills and employment opportunities to poor communities in Datong District, where the average disposable family income was substantially lower than the city’s average. 1 The ‘polluters pay principle’ advocates for holding polluters accountable for the costs associated with preventing, controlling, and remedying pollution or any other type of environmental degradation. A regulation prohibiting illegal dumping at Datong dumping sites was issued in 2015 during project preparation. 2 International experience in policy and regulatory frameworks for brownfield site management, Report No. 57890, September 2010. 3 Overview of the current situation on brownfield remediation and redevelopment in China, Report No. 57953, September 2010. Page 6 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Theory of Change (Results Chain) Figure 1. Project Theory of Change Medium-term Long-term Activities Outputs Short-term Outcomes Outcomes Outcomes/PDO • Clean-up other mining and waste • JiuDa mining and waste dumpsites cleaned. dumpsites in JiuDa site • Revegetation of JiuDa site. • JiaDa mining site revegetated JiuDa mining site cleaned up, pollution sources controlled, Remediated JiuDa mining site in vegetation improved, and • Closing of Datong municipal solid waste • Datong MSW dumpsite closed, and sanitary Green growth and more inclusive development of Huainan City. landscaping remediated (MSW) dumpsite and replacing with a landfill constructed at the same location. • Leachate and gas collected and properly Huainan city standard sanitary landfill at the same location. disposed. • Reconstructing flood drainage canals in JiuDa site and improving their interconnection with site drainage system • Water canals rehabilitated and connected • Dredging sediments and dike with site drainage systems JiuDa mining site stormwater reconstruction for two lakes within JiuDa • Two lakes receiving site runoff refurbished drainage system improved; site • Irrigation system set up, including two flood risk reduced in area. • Building irrigation facilities of pumping pumping stations and networks stations and associated networks within JiuDa site Create a public space at the JiuDa mining site in Huainan city • Construction of roads and associated basic Improved accessibility of the infrastructure, including water supply • Roads linking the Jiuda site constructed or JiuDa mining site; Improved pipelines, sewerage pipelines and upgraded, including associated service connection between the central stormwater pipelines within JiuDa site facilities district and the new Shannan district • Establishment of tree nurseries, flower • Tree nurseries, flower market, bonsai tree JiuDa mining site utilized for market, bonsai tree area, visitor centers, area, and visitor centers established community development with and associated facilities in JiuDa site • Green path system with basic sanitary improved satisfaction of • Construction of green path system with facilities constructed residents in Datong District basic sanitary facilities within JiuDa site. • Critical assumptions: A. Dumpsites closed and waste-dumping • Domestic and international training and banned study tours B. SSA Development Master Plan 2020 • Provision of TA for strictly observed and duly enforced Project successfully (i) project implementation support. • Stakeholders trained throughout project implementation implemented; capacity of (ii) management and redevelopment of • TA provided and SSA Implementation Plan coal mining subsidence areas in Huainan stakeholders enhanced. developed and implemented municipality C. O&M resources and capacities (iii) job skill training for the project available to operate and maintain affected people project investments Page 7 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Project Development Objectives (PDOs) 8. The PDO, as articulated in the Loan Agreement (Ln-8512) and Project Appraisal Document (PAD, Report No. PAD1144), was “to remediate and create a public space at the JiuDa mining site in Huainan city.” Key Expected Outcomes and Outcome Indicators 9. The PDO-level indicators linked to the PDO outcome statements were the following: Outcome 1: Remediate the JiuDa mining site in Huainan city i. Dump sites closed under the project (target: 39 ha) ii. Improved water quality (target: Class V)4 Outcome 2: Create a public space at the JiuDa mining site in Huainan city iii. Satisfaction of users of public space created under the project (of whom women) (target: 75 percent [75 percent]) / Total public space created (public park, flower market, bonsai area) (target: 393 ha). 10. A fourth PDO-level indicator ‘Direct project beneficiaries (of whom women)’ (target: 20,000 [9,600]), was also included. Components 11. Component 1: Environmental Remediation and Water Management (original cost: IBRD: US$63.61 million, counterpart funds: US$25.92 million; actual cost: IBRD: US$31.56 million, counterpart funds: US$38.44 million). This component financed (a) the closing of the Datong municipal solid waste dumpsite and its replacement with a standard sanitary landfill, including reshaping and final capping, constructing a boundary dike with vertical barrier wall (extending beyond the dumpsite base into the known clay layer) along the perimeter of dumpsite to contain and minimize leachate migration, constructing a leachate collection and storage system for transporting leachate for treatment off-site, and constructing a landfill gas collection system; (b) cleanup of 22 other mining and waste dumpsites/piles and reinforcing of closed mine shafts; (c) revegetation and soil improvement across a 410 ha area (delineated into remediation zones depending on geo-hazard/instability), including a site-wide green path of 16 km in length, with basic sanitation service facilities such as public toilets and dustbins; (d) rehabilitation of three drainage channels with a total length of 7.7 km; (e) construction of connecting surface water streams, storage ponds, and crossing structures; and (f) irrigation facilities to provide up to 1.15 million m3 of water for the trees and vegetation. 12. Component 2: Infrastructure Improvement and Site Utilization (original cost: IBRD: US$27.09 million, counterpart funds: US$12.63 million; actual cost: IBRD: US$16.31 million, counterpart funds: US$0.59 million). This component financed (a) the construction of four roads (with a total length of 8.3 km), water supply pipelines (8.5 km), sewerage pipelines (5.0 km), and stormwater drainage pipelines (15.2 km); (b) tree nurseries with associated facilities for maintenance of the environmental remediation 4 Refer to China’s Surface Water Quality Standards (GB3838-2000). See annex 1 for details. Page 8 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) areas and for retail sales (54.6 ha); (c) a flower market with associated facilities (9.7 ha); (d) a bonsai area with associated facilities (8.1 ha); and (e) two visitor service stations with vehicle and bicycle parking facilities. 13. Component 3: Capacity Building and Technical Assistance (original cost: IBRD: US$3.09 million, counterpart funds: US$15.39 million; actual cost: IBRD: US$1.76 million, counterpart funds: US$1.85 million). This component financed (a) technical assistance for long-term management and redevelopment of coal mining subsidence areas in Huainan Municipality; (b) project implementation support and capacity building, including on project management, detailed designs, construction supervision, project monitoring, technical subjects, O&M, and provision of incremental operating costs for the project; and (c) technical assistance for the development of the SSA implementation plan. B. SIGNIFICANT CHANGES DURING IMPLEMENTATION 14. The project underwent three Level II restructurings, in September 2020, November 2021, and June 2022. Details of these restructurings and their underlying reasons are detailed in the following paragraphs. Revised PDOs and Outcome Targets 15. The PDO was not changed; however, in the September 2020 restructuring, the following targets were adjusted: (a) the target of the first PDO-level indicator ‘Dump sites closed under the project’ was increased from 39 ha to 94.90 ha, (b) the target of the second part of the third PDO-level indicator ‘Total public space created’ was reduced from 393 ha to 379.67 ha, and (c) the target of the fourth PDO-level indicator’s female beneficiaries was revised from 9,600 to 47 percent. Revised PDO Indicators 16. The PDO-level indicators were revised in the first restructuring in September 2020 as described in table 1. Table 1. Summary of Changes Made to the Project’s PDO-Level Indicators Original Revised Target Original Indicator Revised Indicator Target Dump sites closed under Unchanged 39 Revised in the the project (ha) September 2020 restructuring: 94.90 Improved water quality Revised in the September 2020 restructuring: Class V Unchanged Improved water quality in the remediated area (water quality grade) Satisfaction of users of Revised in the September 2020 restructuring: 75 (75) Revised in the public space created Satisfaction of users of public space created September 2020 under the project (of under the project (percentage) restructuring: whom women) - Satisfaction of female users (percentage) • 75.00 (percentage) / Total - Satisfaction of male users (percentage) • 75.00 Page 9 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Original Revised Target Original Indicator Revised Indicator Target public space created Revised in the September 2020 restructuring: 393 Revised in the (public park, flower Public space created (public park, tourist / September 2020 market, bonsai area) (ha) exhibition centers and associated restructuring: entertainment / recreational facilities) (ha) 379.67 Direct project Revised in the September 2020 restructuring: beneficiaries (of whom Direct project beneficiaries (number) 20,000 20,000 women) (number) - Female beneficiaries (percentage) (9,600) (47.00) 17. Consequently, the following PDO-level indicators were used to measure the achievement of the PDO outcomes. Outcome 1: Remediate the JiuDa mining site in Huainan city i. Dump sites closed under the project (target: 94.90 ha) ii. Improved water quality in the remediated area (water quality grade) (target: Class V) Outcome 2: Create a public space at the JiuDa mining site in Huainan city iii. Satisfaction of users of public place created under the project (target: 75.00 percent) • Satisfaction of female users (target: 75.00 percent) • Satisfaction of male users (target: 75.00 percent) iv. Public space created (public park, tourist / exhibition centers and associated entertainment / recreational facilities) (target: 379.67 ha) Both Outcomes v. Direct project beneficiaries (target: 20,000) • Female beneficiaries (target: 47 percent). Revised Components 18. In the September 2020 restructuring, Components 1 and 2 underwent revisions, resulting in reductions to their total component costs and loan allocations. Under Component 1, the environmental remediation of Zone C3-1 was cancelled, covering an area of around 180 ha. This cancellation was partially offset by remediating other areas. Under Component 2, envisaged infrastructure for the public space (bonsai area, flower market, and tree nurseries) was not established and instead was replaced by alternative infrastructure (one multifunctional visitor center, two additional curbside service stations, and three irrigation pumping stations). The construction of Zhongxing Road was also cancelled. Although not referenced in the amendments to the Loan or Project Agreements Under Component 3, the development of the SSA implementation plan had already been funded by the government with own resources and the funding released from the loan was incorporated into to the overall relocations and cancellation calculations. See annex 3 for component costs including revisions. Page 10 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Other Changes 19. Changes to the intermediate results indicators (IRIs). They were revised in all three restructurings as summarized in table 2. Table 2. Summary of Changes Made to the Project’s Intermediate Results Indicators Original Original Indicator Revised Indicator Revised Target Target Land area remediated with Unchanged 410 Revised in the improved vegetation coverage (ha) September 2020 restructuring: 350 Leachate collected and treated for Revised in the September 2020 8,400 Revised in the safe disposal (m3) restructuring: September 2020 Leachate collected and treated restructuring: for safe disposal annually (m3) 350 Length of road rehabilitated / Unchanged 8.30 Revised in the constructed (km) September 2020 restructuring: 6.07 Increase in traffic volume at the Dropped in the September 2020 1,300 — junction of Zhongxing Road and restructuring Wanxiang Road (passenger car unit) Annual sales of flower market, tree Dropped in the September 2020 8,000,000 — nursery and bonsai in operation restructuring (US$) Technical Guidelines for mining Unchanged Technical Technical Guidelines subsidence area rehabilitation & Guidelines disseminated on redevelopment (text) on website website Added in the September 2020 75 Unchanged restructuring: Vegetation cover of the remediated areas (percentage) Added in the September 2020 28.48 Revised in the restructuring: November 2021 Length of green paths restructuring: constructed (km) 28.82 Added in the September 2020 8.90 Revised in the restructuring: November 2021 Length of the flood discharge restructuring: canals rehabilitated (km) 8.09 Added in the September 2020 3,998.00 Unchanged restructuring: Total areas of tourist service center constructed (m2) Added in the September 2020 5 Unchanged restructuring: Page 11 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Original Original Indicator Revised Indicator Revised Target Target Number of curbside service stations with public toilets constructed Added in the September 2020 3 Revised in the June restructuring: 2022 restructuring: Number of irrigation pumping 2 stations constructed 20. Cancellation of financing. The September 2020 restructuring cancelled US$37 million of IBRD proceeds, reducing the loan amount from US$100 million to US$63 million. 21. Change in loan closing date and implementation schedule. The project’s closing date was extended twice for a total of 18 months: in September 2020 it was extended by 12 months, from June 30, 2021, to June 30, 2022, and in June 2022 it was extended by six months, to December 31, 2022. The implementation schedule was revised alongside the September 2020 closing date extension. 22. Reallocation between disbursement categories. The September 2020 restructuring reallocated IBRD proceeds under categories 1(b) and 2(b) (works and goods related to the changes in activities in Component 2), retroactively increased the disbursement percentage for works from 81 percent (as in the Loan Agreement) to 100 percent, and added additional Category 7 (Works, Goods, Consultants’ Services, Training and Incremental Operating Costs for the Project). 23. Change in institutional arrangements. The September 2020 restructuring removed two of the five Project Implementation Units (PIUs) from the project implementation arrangements—Huainan Agriculture and Water Investment Company (HAWIC) and Huainan Municipality Coal Mining Subsidence Management Office (HMCMSMO). Their responsibilities were transferred to the Huainan Municipal Urban and Rural Construction Bureau (HMURCB, previous name of Huainan Municipality Construction Commission - HMCC), and Huainan Municipality Development Reform Commission (HMDRC), respectively. 24. Change in safeguards policies triggered. In the November 2021 restructuring, OP/BP 4.04 (Natural Habitats) was added to the list of triggered safeguards policies. Rationale for Changes and Their Implication on the Original Theory of Change 25. Changes to indicators and targets. Changes to PDO-level indicators, IRIs, and their targets were made for the following reasons: • The target of PDO-level indicator ‘Dump sites closed under the project’ was increased from 39 ha to 94.90 ha because it had been underestimated at appraisal and was already achieved at the September 2020 restructuring. • The PDO-level indicator ‘Improved water quality’ was rephrased to better reflect the measurement location, that is, in the remediated area. Page 12 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) • The PDO-level indicator ‘Satisfaction of users of public space created under the project (of whom women) (percentage) / Total public space created (public park, flower market, bonsai area)’ was disaggregated into separate subindicators for clarity. The decreased target of the ‘Public space created’ subindicator from 393 ha to 379.67 ha reflected the cancellation of the environmental remediation of Zone C3-1 from the loan financing and changes in other activities. • For the PDO-level indicator ‘Direct project beneficiaries’, the female disaggregation was changed from absolute to relative measure for better interpretability. • The decreased target of IRI ‘Land area remediated with improved vegetation coverage’ from 410 ha to 350 ha reflected the cancellation of the environmental remediation of Zone C3-1. • The IRI ‘Leachate collected and treated for safe disposal annually’ was rephrased to reflect better what is measured. Its target was reduced from 8,400 m3 to 350 m3 because of a strong overestimation at appraisal, resulting from incorrect assumptions on waste moisture levels and composition. • The target for IRI ‘Length of road rehabilitated /constructed’ was decreased from 8.30 km to 6.07 km to reflect the cancellation of Zhongxing Road which was switched to private funding through a public-private partnership (PPP) which the central government encouraged in order to lower the government debt level, and the reduction in length and width of Wanxiang Road due to its unstable geological conditions. • The IRI ‘Increase in traffic volume at the junction of Zhongxing Road and Wanxiang Road’ was dropped since it was no longer attributable to the project. • The IRI ‘Annual sales of flower market, tree nursery and bonsai in operation’ was dropped, reflecting the changes in activities under Component 2 (see paragraph 26). • To improve results measurement and monitoring and evaluation (M&E) for Component 1, IRIs ‘Vegetation cover of the remediated areas’, ‘Length of green paths constructed’, and ‘Length of the flood discharge canals rehabilitated’ were added. The target of the second IRI was increased from 28.48 to 28.82 to reflect routing optimization in line with the protection measures under OP/BP 4.04 added at restructuring. The target of the third IRI was decreased from 8.90 to 8.09 to reflect flood discharge canal optimization. • To include results measurement for added infrastructure at restructuring and improve M&E for Component 2, IRIs ‘Total areas of tourist service center constructed’, ‘Number of curbside service stations with public toilets constructed’, and ‘Number of irrigation pumping stations constructed (number)’ were added. The target of the last IRI was reduced from 3 to 2 to avoid construction difficulties caused by unstable geotechnical condition. Pumps in the third pumping station were relocated to one of two pumping stations; hence, the total pumping capacity and service areas were unaffected. 26. Changes to components and costs. Under Component 1, the environmental remediation of Zone C3-1 was cancelled mainly due to challenges in land acquisition (this land plot includes a large portion of farmland which is strictly controlled by the central government) and the delayed availability of counterpart funds. The local government intends to involve the private sector to remediate and redevelop part of the area which would take time. Under Component 2, the bonsai area, flower market, and tree Page 13 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) nurseries were not established because they were no longer deemed a top investment priority for the HMG, which looked to increasingly engage private investors and operators in this type of development. Alternative infrastructure, which aligned with government priorities, was added to enhance the utilization of the newly created public spaces and ensure the achievement of the public space creation outcome, while creating co-benefits in terms of job creation and rainwater harvesting. The construction of Zhongxing Road was cancelled because of the HMG’s decision to pursue this through a PPP as noted.5 Under Component 3, the development of the SSA implementation plan was completed by domestic funds in 2017 and hence not funded out of the loan. 27. Cancellation of IBRD proceeds. IBRD loan proceeds were cancelled in the September 2020 restructuring because of US$33.26 million of savings from competitive bidding processes and from CNY- US$ exchange rate changes compared to the rate at appraisal6, and US$16.93 million of loan proceeds were not used due to the noted cancellation of activities. Of the uncommitted IBRD loan amount of around US$50.2 million, about US$5.9 million was to be utilized to finance new investments under Component 2 and US$7.3 million were to be used to fill the counterpart funds shortages under the “Works” category (see paragraph 73). 28. Extension of closing date and implementation schedule changes. The two extensions accommodated the completion of delayed activities for reasons described in section III.B. The implementation schedule was adjusted in the September 2020 restructuring to reflect the closing date extension and activity changes under Components 1 and 2. 29. Reallocations of proceeds reflected (a) the dismissal of the HAWIC implementing agency, which was eligible for expenditures under categories 1(b) and 2(b); (b) the need for increased resources under the works category to compensate for counterpart funding shortages; and (c) the merging of categories 1, 2, and 3 to facilitate full utilization of loan proceeds. 30. Changes to institutional arrangements followed from the 2015 municipal organizational reform, which dismissed the HAWIC and HMCMSMO. The transfer of the responsibilities respectively to HMURCB and HMDRC did not affect project implementation. 31. Changes to safeguards policies. OP/BP 4.04 was triggered in the November 2021 restructuring because the remediation works had turned the mining areas into lakes surrounded by vegetation, which began to attract migratory birds that needed protection. A supplementary ecological impact analysis informed the updating of the project’s Environmental and Social Management Plan (ESMP) with additional protection measures, including engineering measures and monitoring arrangements to be implemented during infrastructure construction and operation phases. See more details in section IV.B. 32. Implication on the theory of change. The outcomes and assumptions in the original theory of change were not affected by the above changes; however, the overall scale of the project was reduced. While the remediated area’s water quality target was unchanged and the closed dumpsite area was increased, the scale of Outcome 1 was reduced because the total remediated land area (one of the key 5Zhongxing road construction was launched in late 2017 and completed and commissioned by 2021. Please refer to annex 5. 6The exchange rate at appraisal and the exchange rate during the September 2020 restructuring were US$1 = CNY 6.10 and US$1 = CNY 6.84, respectively. Page 14 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) indicators that measured this outcome) was reduced from 410 ha to 350 ha. The scale of Outcome 2 was reduced with the reduction of the total area of created public space from 393 ha to 379.67 ha. II. OUTCOME A. RELEVANCE OF PDOs Assessment of Relevance of PDOs and Rating Rating: High 33. The PDO remained highly relevant to the World Bank Group’s Country Partnership Framework for China for FY2020–2025 (Report No. 117875-CN), particularly Engagement Area 2: Promoting Greener Development. Specifically, the project supported Objective 2.1: Facilitating the Transition to a Lower Carbon Energy Path, by serving as a pilot demonstrating how environmental remediation and urban redevelopment can kick-start green growth and inclusive community development after coal mine closure. The project also introduced an innovative risk based approach to mining site remediation, assessing a range of risks like environmental pollution, ecological deterioration, water and soil erosion, flood, damage of landform in the mining subsistence regions beyond the project areas, to be incorporated into future ecological rehabilitation and spatial planning, and land remediation. Under Objective 2.2: Reducing Air, Soil, Water, and Marine Plastic Pollution the project effectively terminated the environmental and ecological deterioration of the old mining area through banning illegal solid waste dumping, financing revegetation and ecological restoration, and improving local water systems. Under Objective 2.4: Strengthening Sustainable Natural Resources Management, the project enhanced the capacity of the HMG to remediate land, reduce soil degradation, and improve water quality as valuable assets for future urban development. 34. The PDO remained fully aligned with national and province development strategies. At the national level, the PDO is aligned with China’s 14th Five-Year Plan (2021–2025) for National Economic and Social Development and Vision 2035,7 which highlight ‘Green Development and Harmonious Co-existence between Humanity and Nature’ through ‘Improving the Ecosystem’, ‘Continuous Environmental Improvement’ and ‘Faster Transformation for Green Development’. The project supported these objectives by vegetation restoration and wetland construction, thus rehabilitating the ecologically deteriorated mining subsidence areas. The PDO is also relevant to the National Development and Reform Commission’s 2021 ‘Implementation Plan for High-quality Development in Resource-dependent Areas during the 14th Five-Year Plan (2021–2025)’, 8 which called for green development of resource-based cities through ecological and environmental remediation, establishment of green production industries such as tourism, and creation of an eco-friendly and livable environment. At the province level, the PDO supports Anhui Province’s 14th Five-year Plan (2021–2025),9 which prioritizes environmental protection and ecological remediation (Chapter 39) and the comprehensive improvement of the city living quality by creating more green public spaces utilizing remediated industrial site/brownfields (Chapter 44) for the sustainable development of resource-based cities. It also directly supports the ‘‘Anhui Province Integrated 7 http://www.gov.cn/xinwen/2021-03/13/content_5592681.htm. 8 https://www.ndrc.gov.cn/fzggw/jgsj/zxs/sjdt/202111/t20211130_1305987.html. 9 https://www.ah.gov.cn/public/1681/553978211.html. Page 15 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Remediation Plan (2020–2025) for the Provincial Subsidence Areas’, focusing on ecological restoration and rational utilization. 35. The PDO is highly relevant to a wide range of government development plans at the municipal and sector levels. As a coal mining-based resource city, where coal mining-related activities accounted for 38.4 percent of the municipal GDP and contributed to 79.9 percent of GDP growth in 2021,10 the HMG has been struggling to meet the national targets for carbon peaking by 2030 and carbon neutrality by 2060. The project supported these objectives by clearing and closing open dumpsites while greening public space, aiding not only in reducing carbon emissions but also in achieving carbon peak targets by 2030 and enhancing the site’s capacity as a carbon sink. 36. The project restructurings ensured continued alignment with evolving government operational priorities without compromising the PDO. Certain public space creation activities were discontinued to respond to the Government’s increased emphasis on involving private investors and operators in such development. To make sure that the public space outcome is achieved, the project instead financed alternative improved infrastructure, such as the multipurpose tourist center, safety and security enhancements, and the fruit and flower gardens. 37. The project outcomes were more ambitious than as conveyed in the PDO and the PDO indicators. The PDO referenced outputs (mining site remediation and public space creation) while the project achieved more than that – it remediated and redeveloped a large mining site into a green zone where people can recreate and enjoy social activities; it improved flood protection in the area; and it introduced an innovative, comprehensive, cost-effective and replicable approach to site remediation and land use transformation that had not been previously applied in China. B. ACHIEVEMENT OF PDOs (EFFICACY) Assessment of Achievement of Each Objective/Outcome Overall rating before restructuring: Substantial Overall rating after restructuring: High 38. The efficacy assessment is organized around the two PDO outcomes: to remediate the JiuDa mining site in Huainan city and create a public space in the same area. The September 2020 restructuring revised some PDO and intermediate indicator targets which somewhat reduced the project scope, and therefore the evaluation applies a split evaluation methodology, assessing the achievement of outcomes before and after this restructuring. The other two restructurings introduced only minor changes in the IRIs and are not factored in the split evaluation. Outcome 1: JiuDa mining site in Huainan city remediated 39. Table 3 presents the project results as measured by the relevant original and revised indicators. 10 https://www.huainan.gov.cn/grassroots/content/1259495451. Page 16 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Table 3. Summary of Outcome 1 Results Target in Original Target in Result at Closing / Indicator Results Revised Achievement Rate Framework RF (RF) PDO-level indicators 94.90 / 243% of target in 1. Dump sites closed under the project (ha) (original) 39 94.90 original RF, 100% of target in revised RF 2. Improved water quality (text) (original) Between Class V and Improved water quality in the remediated area (water Class V Class V Class IV / >100% of target quality grade) (text) (revised) Intermediate results indicators 418.96 / 102% of target in 1.1 Land area remediated with improved vegetation 410 350 original RF, 120% of coverage (ha) (original) target in revised RF 1.2 Leachate collected and treated for safe disposal (m3) 312 / 4% of target in (original) 8,400 350 original RF, 89% of target Leachate collected and treated for safe disposal annually in revised RF (m3) (revised) 1.3 Area protected against 1/30 year floods (km2) 9.0 9.0 9.30 / 103% of target (original) 1.4 Vegetation cover of the remediated areas 75.05 / 100% of target in — 75 (percentage) (new) revised RF 36.85 / 128% of target in 1.5 Length of green paths constructed (km) (new) — 28.82 revised RF 1.6 Length of the flood discharge canals rehabilitated 7.61 / 94% of target in — 8.09 (km) (new) revised RF 40. Outcome 1 was achieved before and after the 2020 restructuring, with its two PDO-level indicators and most IRIs showing results that achieved or exceeded their original and revised targets. 41. The successful remediation of the JiuDa mining site was facilitated by the closure of the Datong municipal solid waste dumpsite and 22 other dumpsites by 2018 for a total area of 94.90 ha, exceeding the original PDO1 target (which had been underestimated) and meeting the revised target. From 2016 to 2018, the project financed a comprehensive clearance of these dumpsites from 615,393 m3 of various wastes: 89,376 m3 of coal ash, 490,992 m3 of construction waste, 4,120 m3 of municipal solid waste, and 30,905 m3 of coal gangue. To clear these waste types appropriately, different disposal methods were employed. Mining wastes, such as coal ash and coal gangue, were diligently removed and repurposed by Huainan Angrui New Wall Material Co. Ltd., a construction material company; construction wastes were cleared and recycled by Huainan Jinke Recycling Material Co. Ltd.; and municipal solid wastes underwent proper removal and were transferred to a sanitary landfill site with project financing, adhering to stringent environmental practices and high standards to prevent soil and water pollution. Following the site closures, no new waste dumping was allowed in these sites, backed by local regulations issued in 2014. Page 17 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) 42. The closure of the Datong dumpsites facilitated the overachievement of the original and revised environmental remediation with vegetation cover targets (IRI1.1), with 418.96 ha of land in the JiuDa mining area covered with vegetation to prevent soil erosion, enhance soil stabilization, and promote greening and recreational purposes. This resulted in a 75 percent vegetation cover compared to a baseline of 20 percent, achieving the 75 percent target (IRI1.4). IRI1.5, Length of green paths constructed, supported both outcomes and is discussed under outcome 2 below. In terms of leachate collected and treated from the sanitary dumpsite (IRI1.2), while even the more appropriately calculated revised target was not achieved, this actually reflects lower leachate production resulting from a reliable design and effective management practices. This finding is further reinforced by the favorable groundwater quality monitoring results (see paragraph 44). The collected leachate was safely transferred to the municipal wastewater treatment plant (WWTP) for treatment, with its effluent meeting national standards (PDO2). 43. The protective flooding measures were put in place in the JiuDa mining site with various completion rates. A total of 7.61 km of flood discharge canals were constructed or rehabilitated. Since some sections of the existing canals remained good condition, certain reconstruction activities originally scheduled were not implemented. However, the canal’s functionality was fully restored, and flood drainage now meets the design requirements, achieving 94 percent of the target (IRI1.6). The rehabilitation works on three drainage channels, that is, desludging, slope protection, and earthworks on the Datong, Chenxiang, and Jiulonggang canals, and on three lakes implied 9.30 km2 of the remediated JiuDa site is now protected against 1-in-30-year floods, surpassing the 9 km2 target (IRI1.3). 44. The clearance and closing of the 22 dumpsites, the removal of leachate, and measures put in place against flooding resulted in an improvement of the JiuDa mining site’s surface water quality from worse than Class V (chemical oxygen demand [COD]/biochemical oxygen demand [BOD]/total nitrogen [TN] at 89/31/75 mg/L, respectively) to between Class V and Class IV (COD/BOD/TN at 15/2.4/2.71 mg/L, respectively), overachieving the target (PDO2). These values were gathered through biannual monitoring of the groundwater quality in five monitoring wells near the closed Datong dumpsites as well as of surface water in six ditches and three lakes within the remediated area, between 2018 and 2022. Groundwater quality tests were carried out by an appointed independent laboratory and demonstrated consistent compliance with the standards outline in the Groundwater Quality Standard (GB/T14848-93) Category III. Surface water quality levels consistently ranged between Class V and Class IV, Class IV signifying higher water quality than Class V. This outcome indicates that the project-funded remediation efforts effectively safeguarded groundwater and surface water resources in the project area. Outcome 2: Public space at the JiuDa mining site in Huainan city created 45. Table 4 presents the project results as measured by the relevant original and revised indicators. Table 4. Summary of Outcome 2 Results Original Revised Result at Closing / Indicator Target Target Achievement Rate PDO-level indicators 3. Satisfaction of users of public space created under the 75 (75) / project (of whom women) (%) / Total public space created 393 (public park, flower market, bonsai area) (ha) (original) 97.93 / 131% of target - 98.29 / 131% of Page 18 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Original Revised Result at Closing / Indicator Target Target Achievement Rate Satisfaction of users of public space created under the 75 target project (percentage) (revised) - 97.49/ 130% of - Satisfaction of female users (percentage) - 75 target - Satisfaction of male users (percentage) - 75 4. Public space created (public park, tourist/exhibition 379.67 643.57 / 164% of target centers and associated entertainment/ recreational in original RF, 169% of facilities) (ha) (revised) target in revised RF Intermediate results indicators 2.1 Length of road rehabilitated /constructed (km) (original) 5.44 / 66% of target in 8.30 6.07 original RF, 90% of target in revised RF 2.2 Increase in traffic volume at the junction of Zhongxing 1,300 — Not measured Road and Wanxiang Road (passenger car unit) (dropped) 2.3 Annual sales of flower market, tree nursery and bonsai 8,000,000 — Not measured in operation (US$) (dropped) 36.85 / 128% of target 2.4 Length of green paths constructed (km) (new) — 28.82 in revised RF 2.5 Number of people employed through site utilization 430 activities (of whom women) (original) (206) 430 495 / 115% of target Number of people employed through site utilization activities (revised) - 206 - 213 / 103% of - Number of women employed through site utilization target activities 2.6 Number of visitors to public space created (of whom 100,000 women) (original) (48,000) Number of visitors to public space created (revised) 110,000 / 110% of 100,000 - Number of women visitors to public space created target - 48,000 - 54,000 / 112% of target 2.7 Total areas of tourist service center constructed (m2) — 3,998 4,458 / 111% of target (new) 2.8 Number of curbside service stations with public toilets — 5 5 / 100% of target constructed (new) 2.9 Number of irrigation pumping stations constructed 2 / 100% of target in — 2 (new) revised RF 46. Outcome 2 was achieved before and after the 2020 restructuring. Using the original indicators and targets, the PDO-level targets (PDO3 and 4) and two intermediate results (IRI2.5 and IRI2.6) were exceeded, IRI2.1 was underachieved, and IRI2.2 and IRI 2.3 were dropped and were not measured. Using the revised indicators and targets, the PDO-level targets and four intermediate results were exceeded (IRI2.4, 2.5, 2.6 and 2.7), two intermediate results were achieved (IRI2.8 and IRI2.9), and IRI2.1 was substantially achieved. Page 19 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) 47. The project overachieved or met its construction targets for public space facilities in the rehabilitated JiuDa site. Over 36.85 km of green paths were constructed (IRI2.4), surpassing the 28.82 km target. Tourist service centers were constructed over 4,458 m2 (IRI2.7), surpassing the revised 3,998 m2 target. Five curbside service stations were constructed with public toilets (IRI2.8) and two irrigation pumping stations, with the same pumping capacity and service area as the three originally planned (IRI2.9) were constructed to irrigate vegetation, both meeting the targets. 48. As a result of the above activities, the project created 643.57 ha of public space, exceeding the original and revised targets by a large margin (PDO4). The result reflects the total remediated land area (695.8 ha, where civil works were done) minus the area of the sanitary landfill site (8.8 ha, the footprint area) and the water surface areas (43.43 ha), where public space was not created. The public space includes forestland and grassland, flower and fruit picking gardens, citizen plazas and gym facilities, tourist centers, curbside service centers, and green paths. 49. Satisfaction rates with public spaces utilization were above-target. The survey was conducted by an external monitoring consultant in collaboration with the Huainan Project Management Office (PMO) and the Datong District Government in September–October 2022. 11 Of the 2,027 interviewed, 97.93 percent expressed satisfaction from the public spaces, exceeding the 75 percent target (PDO3). Of the female respondents, 98.29 expressed satisfaction, whereas it was 97.49 percent for males. The survey findings emphasized that the new public spaces had significantly improved the quality of life for residents and effectively addressed their needs. 50. The project monitored the employment created in these public spaces and the attractiveness of the new space, showing above-target results. The number of people employed through site utilization activities exceeded the target, with 495 individuals employed, including 213 females (43 percent) (IRI2.5). The number of visitors to the new public spaces was also exceeded, with 110,000 visitors, including 54,000 females (49 percent) (IRI2.6). 51. The project’s underachievement in road rehabilitation and construction reportedly did not prevent achieving accessibility and connectivity outcomes. A total of 5.44 km of roads were rehabilitated or constructed, compared to the original (8.30 km) and revised target (6.07 km) (IRI2.1). This underachievement reportedly did not affect the connectivity of the road networks from the rehabilitated JiuDa site to the Huainan urban center, given that traffic flow was smooth after the connection roads were completed. 52. Common to both outcomes were the number of direct project beneficiaries (PDO indicator) and three IRIs which exceeded or met their targets. At closing, the project had reached 55,000 direct beneficiaries, of which 49.19 percent were female beneficiaries, exceeding the 20,00012 and 47 percent targets, respectively. The direct beneficiaries included residents of Datong Community and Jiulonggang Township of Datong District, who benefited from (a) improved water quality and reduced flood risks following the rehabilitation of flood canals and lakes; (b) improved ecological environment due to reduced 11 The satisfaction survey was conducted from September 30, 2022, to October 17, 2022, across a total of 2,027 respondents. Among the respondents, 1,111 were females, accounting for 55 percent of the sample, while 916 were males, making up 45 percent of the sample. 12 The 20,000 target was set based on population estimates of communities and villages in the project area. The target is significantly surpassed because of a larger geographic coverage of the project than planned and updated population data. Page 20 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) pollution and increased green coverage; (c) increased urban biodiversity (migratory birds) as a result of the area’s remediation; (d) new public spaces for leisure; (e) new environmental amenities such green lanes, vegetation, open water surface; (f) reduced health risks from contaminated water, soil, and air; and (g) new jobs in site operation. As part of the comprehensive approach to the Datong area restoration, the project supported local communities in the project area who had significantly lower disposable income for lack of employable skills and job opportunities, especially women. It partnered with the Skill Training Center under the Datong District Human and Social Security Bureau, and trained people as elderly care workers, baby care workers, household service personnel, security guards, electricians, welders, car maintenance workers, cooks, and gardeners. The training was conducted over 17 sessions between September 2020 and September 2022, reaching 1,157 people (surpassing the 965 target), and significantly exceeding the share of female trainees (702 achieved compared to the 463 target). Ninety-four percent of all trainees received job skill certificates and 63 percent found employment (see paragraph 63). 53. Drawing on international and project experience, four reports outlining guidelines for the rehabilitation and redevelopment of mining subsidence areas in Huainan and China were prepared and disseminated on the Huainan Development Reform website in 2021: (a) Report on Risk Assessment, Prevention and Mitigation of Mining Subsidence Areas, which innovatively set up the framework for comprehensive risk assessment, prevention and mitigation of mining subsidence areas, bringing together ecological, environmental, geological, sociological and economic perspectives to approaching such remediation; (b) Technical Guidance for Comprehensive Rehabilitation of Mining Subsidence Areas which adapted international and domestic experience in comprehensive remediation of subsidence mining regions to the Huainan context; (c) Report on Comprehensive Remediation Standards of Subsidence Mining Areas Remediation which proposed multiple-scenario frameworks for the use of farmland, construction land, wetland, parks, subsidence areas due to karst collapse; and (d) Comprehensive Remediation Policy and Mechanism for Huainan City which addressed topics like people-oriented land acquisition and resettlement and social security policy, integrated planning via comprehensive governance, ecology restoration, job creation, facilitating ecological transformation and upgrading of urban industries, long-term remediation monitoring, and public participation. Lastly, the remediated site’s asset management plan was approved in December 2021 and a site management entity was launched in 2022 to oversee the management of the project-financed assets. Justification of Overall Efficacy Rating 54. Outcome 1 was achieved with all original and revised PDO-level targets exceeded or fully achieved, and exceeded target for land and area remediated with improved vegetation coverage. The leachate and pumping station targets were effectively achieved because the entire leachate volume was collected from the remediated sites and the target pumping capacity and area coverage was achieved with two instead of three pumping stations. Outcome 2 was also achieved with the created public space exceeding the PDO target and much higher reported satisfaction rates. The length of road rehabilitated/constructed and length of flood discharge canals rehabilitated substantially met their targets. Page 21 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) C. EFFICIENCY Assessment of Efficiency and Rating Rating: Substantial Economic Analysis 55. At project completion, the project’s economic analysis was updated with actual cost input and output data for 2014–2022, along with projections for future years. The cost at completion was about 57 percent of the cost estimate at appraisal, and key outputs (such as remediated land with improved vegetation coverage and new public space created) at completion were larger than at appraisal following the restructuring. Thus, the basis for the efficiency assessment is the economic analysis at completion instead of a comparative analysis of the values at appraisal and completion. The findings from the economic analysis at completion show a robust economic internal rate of return (EIRR) at 18.85 percent, which is a bit lower than the EIRR calculated at appraisal (23.7 percent) but notably greater than the 10 percent benchmark rate of return (threshold for capital investment projects set by the Chinese Government). There are also significant nonquantifiable project benefits, such as improved appearance of Huainan’s urban area and aesthetical values of the project site compared with that before the project. 56. The economic net present value (ENPV) and EIRR of the project at appraisal and completion are summarized in table 5. Table 5. Comparison of Main Economic Analysis Indicators at Appraisal and Completion Key Indicator At Appraisal At Completion Percentage of Appraisal ENPV (i = 10%) CNY 403.00 million CNY 646.25 million 160.4 EIRR 23.70% 18.85% 79.6 57. An economic sensitivity analysis of the project was conducted under different individual factors as well as multiple factors occurring simultaneously. These factors included a 10 percent increase in project engineering investment, a 10 percent decrease in income, a 10 percent increase in O&M costs, and a one-year delay in implementation. The analysis shows that when the project engineering investment increases by 10 percent, income decreases by 10 percent, and O&M fee increases by 10 percent individually, the impact on the project’s EIRR is small and the sensitivity coefficient is less than 1.00. When the above three situations occur simultaneously, the impact on the project income is greater, the sensitivity coefficient reaches 1.22, and the EIRR is reduced to 16.55 percent but still greater than the 10 percent benchmark rate of return. The one-year implementation delay has less impact on the EIRR. Therefore, the entire project shows strong resilience economically. The results of the economic sensitivity analysis are detailed in table 6, and annex 4 presents the full economic analysis. Page 22 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Table 6. Economic Sensitivity Analysis Results ENPV (CNY, Sensitivity Sensitivity Item EIRR (%) millions) Indicator Value (%) Base EIRR 10.0% (a) Base case 646.25 18.85 (b) Capital cost plus 10% 605.52 17.76 0.58 80.8 (c) Revenue less 10% 533.78 17.56 0.68 68.6 (d) Operating cost plus 10% 639.13 18.61 0.13 365.1 (e) Combination of (b), (c), and (d) 485.93 16.55 1.22 38.4 1-year delay in implementation 621.90 18.61 Implementation Efficiency 58. The project experienced implementation delays during its first three years (2016–2019) because of lengthy land acquisition processes, affecting implementation efficiency. Further, the prolonged and intermittent lockdowns in 2020–2022 caused by the outbreak of the COVID-19 pandemic, added to the delays, as did the winter arrival of migratory birds starting in October 2017 when works needed to be paused. Despite these delays, the project needed only an 18-month closing date extension owing to overall efficient implementation once the bottlenecks were resolved. Furthermore, the project incurred substantial savings due to successful competitive bidding processes, as discussed. Notable examples of original cost versus actual contract cost include, respectively: (a) environmental remediation of Zones C01, C2-2, and C3-2: CNY 193.91 million versus CNY 76.12 million; (b) water stream rehabilitation: CNY 55.01 million versus CNY 29.05 million; and (c) road construction: CNY 67.35 million versus CNY 39.33 million. D. JUSTIFICATION OF OVERALL OUTCOME RATING Rating: Satisfactory 59. The overall outcome rating considers the PDO’s high relevance to the national, provincial, and World Bank priorities at the time of project closing; the substantial project efficacy before and high efficacy after the 2020 restructuring; and substantial project efficiency based on the results of the economic analysis and significant cost savings. Consequently, the overall outcome rating is Satisfactory, as shown in table 7. Table 7. Calculation of Overall Outcome Rating Before the 2020 After the 2020 Restructuring Restructuring Relevance of Objective High Efficacy (PDO) Substantial High Outcome 1: To remediate the JiuDa mining site in Substantial High Huainan City Outcome 2: To create a public space in JiuDa mining Substantial High site in Huainan City Efficiency Substantial Outcome ratings Satisfactory Highly Satisfactory Numerical value of the outcome ratingsa 5 6 Disbursement (US$, millions) 30.94 24.49 Page 23 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Before the 2020 After the 2020 Restructuring Restructuring Share of disbursement 0.56 (or 56%) 0.44 (or 44%) Weighted value of the outcome rating 2.80 2.64 Final outcome rating Satisfactory (2.80 + 2.64 = 5.44, rounded down to 5) Note: a. Highly Unsatisfactory (1); Unsatisfactory (2); Moderately Unsatisfactory (3); Moderately Satisfactory (4); Satisfactory (5); Highly Satisfactory (6). E. OTHER OUTCOMES AND IMPACTS Gender 60. The project did not explicitly aim to bridge any gender gap; however, a detailed gender analysis was conducted as part of the social assessment and gender-disaggregated data were collected and utilized in the development of the Resettlement Action Plan (RAP) to ensure the protection of women’s interests throughout project implementation. The project’s overarching approach to gender was to guarantee equal benefits for both men and women by ensuring equitable access to project-financed investments. At closing, out of 55,000 direct beneficiaries, 49.19 percent (27,055) were female. Moreover, 98.29 percent of the females who utilized the public spaces financed by the project expressed satisfaction with them, demonstrating the effectiveness of the consultations during project preparation. Importantly, 702 females were trained at the skills training center, representing 61 percent of the 1,157 individuals who were trained and 213 females were employed through site utilization activities, representing 43 percent of the total number of people employed. Finally, females represented 49 percent of the visitors to the newly created public spaces—54,000 of the 110,000 visitors recorded. Overall, the gender-disaggregated data demonstrate a balanced representation and satisfactory outcomes across the various project indicators. Institutional Strengthening 61. The staff capacity in the PMO and PIUs was significantly strengthened through practical experience and approximately 20 training sessions on project implementation, technical solutions, and O&M for newly built assets (the latter notably by engaging an experienced private operator, the Huainan Construction Investment and Development Company, as site operator). The project also financed two technical assistance activities with four specific studies (see section II.B and annex 1) to enhance government capacity in addressing coal mining subsidence challenges. These studies presented a risk assessment of subsidence areas caused by coal mining, suggested technologies, outlined good practices and standards, and provided guidelines and recommendations on policy making and institutional arrangements. These reports were discussed in several workshops attended by participants from the coal mining sector in China. As a result of these activities, the borrower gained institutional capacity and hands- on experience in addressing coal mining subsidence challenges and is presently undertaking larger-scale rehabilitation initiatives. The borrower also intends to share its knowledge and experience with other cities. Mobilizing Private Sector Financing 62. The investments of the project in the remediated site are expected to attract private sector Page 24 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) investments in the public space created. Already, the HMG is planning to develop a 9.7 ha flower market, 54.6 ha tree nurseries, and an 8.1 ha bonsai area using private capital. Poverty Reduction and Shared Prosperity 63. The project’s skill training program focused on people affected by land acquisition and resettlement, women, and low-income and low-skill families from 10 communities and three villages residing in and adjacent to the project site. The program was implemented from 2020 onward, providing vocational skills training to 1,157 people in nursing, babysitting, domestic attendance, electrical work, welding, auto mechanics, and cooking. According to a social development survey conducted by an external monitoring team in 2022, the employment rate among the trainees was 63 percent. In addition, construction contractors hired 495 people from local low-income households for site maintenance in 2020–2022. Other Unintended Outcomes and Impacts 64. The improved surface water quality of the three lakes13 at the JiuDa site resulted in enriched biodiversity in the area. Starting in the winter of 2017, mandarin ducks that are categorized as Class 2 protection animal in China began to frequent one of the rehabilitated lakes, increasing in size from approximately 100 ducks in 2018 to more than 400 ducks in 2022. With the expected continuous annual increase of the duck population in the coming years, the site is likely to become another destination for local visitors, bird lovers, and tourists. III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME A. KEY FACTORS DURING PREPARATION 65. Appropriateness of project design. The project design was well informed by government priorities, policies and regulations and intended to achieve maximum development impact by selecting a site located in a low-income area of the city. The old mining area at JiuDa site in Datong District was also selected because it presented comparative geological stability within the central urban areas of Huainan Municipality. The site remediation would not only halt the ecological deterioration trend, reduce environmental and health risks, and bring valuable assets for the urban development, it would also boost local economy and narrow down the development gap between the JiuDa mining region and other regions of the city. The PAD referred to a “risk-informed and balanced” design approach, where the future utilization scenarios of the remediated lands were matched with the prevailing conditions. Thus, the project design was appropriate during preparation. 66. Soundness of the background analysis. Significant work was undertaken to understand the requirements to remediate and redevelop the JiuDa mining site in Huainan city. During project preparation, analyses of the technical, financial, environmental, social, and institutional aspects of the planned activities were carried out and their findings directly informed the design. Furthermore, a qualified design institute prepared a feasibility study report (FSR) , using good international standards, which fed into the project design. A weakness in the background analysis were the land acquisition 13 Among which two were remediated by the project. Page 25 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) estimated for project activities. The assessment was 184.59 ha at appraisal, which was underestimation given the eventual need to acquire 766.32 ha, resulting in implementation delays as discussed (see paragraph 82). 67. Reflection of lessons learned. The project design reflected findings of two World Bank studies on brownfield management and redevelopment as noted. The specific lessons of these studies that reflected in the design were (a) a risk-informed project design, including geological, environment and flood risks; (b) balancing of remediation with redevelopment; (c) appropriate sizing of project facilities; (d) a realistic counterpart funding plan; and (e) early attention to O&M arrangements for project facilities. The project also drew lessons from the experiences of several related operations in Europe, Central Asia, and China14 by addressing policy and regulatory frameworks to secure sustainable project financing. One technical assistance was proposed at appraisal to combine international experience with local context, including policy advice to the Government for institutionalizing similar site remediation. 68. Assessment of risks and mitigation measures. The overall project risk was correctly assessed as high, identifying its key risks as (a) inadequate experience and capacity of the PMO and PIUs in managing and implementing World Bank-financed projects, (b) a project design that might inadequately address the geo-hazard and environmental risks of the selected site, (c) inadequate borrower capacity to implement the RAP, and (d) lack of counterpart funding for resettlement and compensation due to fiscal constraints of the HMG. Appropriate mitigation measures were incorporated into the design. The risk associated with the lack of PMO and PIU experience and capacity was to be mitigated by (a) ensuring appropriate staffing in terms of number of staff and experience; (b) providing training to the staff on World Bank policies and procedures, project management, and relevant technical subjects during project preparation and the initial stages of implementation; (c) establishing a technical expert panel and a sector advisory group, composed of an experienced engineer, safeguards specialists, a project management specialist, and financial and economic specialists, to carry out design reviews and quality control during preparation; and (d) hiring competent implementation support consultants and specialized firms to prepare detailed designs of the planned activities and support project management, construction supervision, monitoring, and development of the studies. In order to effectively ensure that the project design addressed the geo- hazards and environmental risks of the site, a risk-based remediation approach was adopted. Consulting companies were engaged for critical inputs, including a comprehensive project feasibility study to ensure the project design aligned with site requirements. A baseline geo-hazard risk assessment of the project area was carried out, specifically with respect to infrastructure construction and the dumpsites closure. To gain deeper insights into the environmental and geological risk aspects of the site, detailed environmental and geological site investigations and subsidence observations were conducted. These investigations provided valuable data to inform decision-making regarding the project’s execution, and the activities were selected based on alternatives analyses and option assessments carried out in consultation with beneficiary communities and key stakeholders. RAP implementation capacity risks were to be mitigated through World Bank training to the PMO and staff from the Datong District Resettlement Office on resettlement requirements, the involvement of affected communities in the development and implementation oversight of the RAP, and the hiring of an independent monitoring consultant to ensure proper RAP implementation. To mitigate fiscal constraints, the HMG and the World Bank prepared a detailed project funding plan and annual budgets were officially approved by the local authority during 14 Refer to footnotes 2 and 3. Page 26 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) appraisal. Despite these measures, it was recognized that there remained a residual risk of insufficient counterpart financing due to potential shifts in local investment priorities. 69. During implementation, these risks were relevant and the mitigation measures were overall effective. However, the mitigation measures concerning the counterpart funding were ineffective and, in retrospect, could have been addressed with a design that had lesser land acquisition requirements. Finally the lengthy land acquisition procedures and larger land acquisition requirements were not identified as risks and mitigation measures were not put in place. 70. Adequacy of government commitment. The government commitment was strong as evidenced by its completion of the ‘Comprehensive Plan for Coal-mining Subsidence Areas in Huainan Municipality (2009–2020)’. Moreover, Huainan initiated a number of small-scale activities to remediate selected subsidence areas to gain practical experience with rehabilitation of such sites. A Project Leading Group, chaired by the Executive Vice Mayor, was established in 2015, with officials from related government departments to participate in project-related activities. Simultaneously, the PMO was set up within the Huainan Municipal Finance Bureau already during project preparation and was headed by the Director of Huainan Municipal Finance Bureau. 71. Readiness for implementation. The project preparation time was lengthy (22.8 months from concept to approval), as the project was the first of its kind in China dealing with risk-based mining site remediation and the government preparation team paid special attention to important aspects, which was evident, for instance, from the issuance of the aforementioned ‘Enforcement of Regulations’ in June 2014 (during project preparation) to prohibit illegal dumping of solid wastes in the JiuDa mining areas. Moreover, the FSR of the project was prepared and approved during appraisal. B. KEY FACTORS DURING IMPLEMENTATION 72. A well-prepared and approved development plan. Throughout project implementation, the PMO and PIUs adhered to and implemented the SSADMP 2020, which was prepared and approved by the HMG, along with its corresponding implementation plan. 73. Lengthy start-up delays due to slow land acquisition. The much larger than anticipated scale of land acquisition stretched the borrower’s capacity to finance it, capacity which had already been constrained by decreased demand for coal, which was an important source of revenue for the city. These factors, coupled with lengthy land acquisition processes, resulted in implementation delays during the project’s first three years (from 2016 to 2018). The World Bank provided hands-on support to the PMO and PIUs to revise and update the RAP. With the engagement of all stakeholders, the municipality and Datong District leaders, the land acquisition and resettlement issues were gradually resolved. The counterpart funds issue was also eventually resolved by cancelling the Zone C3-1 remediation and increasing the World Bank loan disbursement ratio for civil works in the September 2020 restructuring. 74. Midterm (MTR) review and restructurings. The MTR mission was conducted in October 2018, just after the project’s midpoint, discussing the implementation delays and offering changes that were considered necessary to improve the project’s performance and allowing for necessary adjustments to be on track for achieving the PDO. However, the restructuring only took place two years later, in September 2020, due to the Government’s decision process on investment priorities and replacements regarding the Page 27 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) utilization of the public space created. It presented a missed opportunity to fast-track implementation earlier. Once restructured, implementation progress greatly improved in terms of works completion and results, and the project got back on track to achieve its PDO. 75. COVID-19 pandemic. The pandemic resulted in four months of lockdown in Huainan city between 2020 and 2022. These lockdowns affected the completion of the construction of the two visitor service centers and the five curbside service stations, necessitating the second six-month extension of the closing date. IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME A. QUALITY OF MONITORING AND EVALUATION (M&E) Rating: Substantial M&E Design 76. The project’s M&E design, on balance, provided a decent framework for results tracking but it had several weaknesses. The PDO focused on outputs and did not reflect the innovative project approach, nor did it define the primary target beneficiary group. At the PDO level, the first indicator ‘Dump sites closed under the project’ was better suited as an IRI as it measured an intermediate result that supported the site remediation outcome, while a number of other IRIs would have been better suited to capture project outcomes. For example, ‘Land area remediated with improved vegetation coverage’ was better suited as a PDO-level indicator because it measured the remediation scale and quality. ‘Area protected against 1/30 floods’ ‘People employed through site utilization activities’, and ‘Number of visitors to public space created” would have been a good outcome indicators as well. The indicator ‘Satisfaction of users of public space created under the project (of whom women)/Total public space created (public park, flower market, bonsai area)’ included two measurements of the second outcome statement, which should have been presented as two separate PDO-level indicators. At the intermediate results level, several key activities were not assigned indicators, such as rehabilitation of flood discharge canals and construction of a green path, and the target for the volume of collected and treated leachate was overestimated and could have been better phrased as percentage of existing leachate collected and treated to accommodate any uncertainties about the composition of the targeted dumpsites. The three restructurings, particularly the September 2020 one, addressed these weaknesses, except the misplacement of the remediation indicators, and further enhanced the RF clarity by adding gender breakdown indicators where needed. The restructurings also did not update the direct beneficiary target even though it was known in 2019 that the number of beneficiaries was much higher than estimated at appraisal. M&E Implementation 77. Notwithstanding the moderate shortcomings in the M&E system’s design, its implementation was generally sufficient to assess the achievement of the PDO and test the links in the results chain. Throughout the project implementation phase, the M&E system performed well, effectively collecting the necessary data and information by the PMO, PIUs and their consultants. The PMO and the PIUs successfully analyzed the collected data and information. Additionally, a project management information system was established at the project’s onset to monitor contract implementation, loan disbursement, and environmental and social performance. This system proved valuable in providing data and Page 28 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) information which were shared online with the World Bank. M&E Utilization 78. Despite the initial shortcomings in the M&E design and subsequent revisions, a consistent and reliable flow of M&E data and information throughout the implementation process enabled the PMO, the PIUs, and the World Bank to track progress and assess the level of PDO achievement. The RF indicators provide a good sense of project achievements. The identification of challenges also provided insights for World Bank missions and subsequent project restructurings. Justification of Overall Rating of Quality of M&E 79. The overall M&E is rated Substantial. Initial design shortcomings were corrected and the project M&E served its purpose to track progress and inform decisions during implementation. B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE Environmental and Social 80. The project triggered OP/BP 4.01 (Environmental Assessment) and was classified Category A (Full Assessment), OP/BP 4.36 (Forests), OP 4.09 (Pest Management), OP/BP 4.11 (Physical Cultural Resources), and OP/BP 4.12 (Involuntary Resettlement). The November 2021 restructuring also triggered OP/BP 4.04 (Natural Habitats) as noted. 81. Environmental safeguards. The project complied with the World Bank’s environmental safeguards policies. During project preparation, a thorough assessment of potential adverse environmental impacts was conducted for the physical components of the project during construction and operation. This resulted in the development of an Environmental Impact Assessment (EIA) and an ESMP for the project. The EIA and ESMP were disclosed locally on September 5, 2014, and shared through the World Bank’s InfoShop on November 17, 2014. Alongside the triggering of OP/BP 4.04, the ESMP was updated to ensure the protection of the new migratory bird habitat from the project’s impacts. The updated ESMP included an ecological impact assessment, risk mitigation measures, and management strategies, and it was locally disclosed on March 23, 2021, and through the World Bank website on August 3, 2021. The ESMP was effectively implemented and adhered to the provisions of the relevant policies, as evidenced by the findings of the World Bank supervision missions and regular progress reports by external monitoring teams on ESMP implementation. The PMO dedicated environmental management staff to ensure that all the prescribed mitigation measures were appropriately incorporated into contracts and implemented. The World Bank received positive feedback from key stakeholders, including local authorities, nongovernmental organizations (NGOs), and the public, acknowledging the project’s efforts in environmental management and safeguarding. 82. Social safeguards. The project complied with the World Bank’s social safeguards policies. During preparation, an RAP was prepared, outlining the resettlement policy principles and regulations to be followed, compensation rates and budgets, mitigation measures to restore incomes where necessary, and institutional and monitoring arrangements. Resettlement offices were established under the PIUs to oversee the land acquisition and resettlement activities and the RAP was disclosed locally on July 17, 2014 Page 29 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) and in the World Bank InfoShop on November 17, 2014. The RAP was updated following some design changes and was redisclosed locally and in the InfoShop in February 2019. The project affected one residential community (Datong Community) and one township (Jiulonggang Town) in Datong District, Huainan City. At closing, 49.97 mu (3.33 ha) of collective land was acquired for the project, leading to the resettlement of 785 households and affecting 3,337 individuals. Additionally, 509.83 ha of state-owned land was reclaimed for the project, which included the demolition of 1,998.36 m2 of houses, affecting 21 households and 65 people who were compensated as required in the RAP. Furthermore, some nearby tombs were successfully relocated and a closed-down enterprise spanning 1,600 m2 was also demolished. 83. Other safeguards policies. Forests (OP/BP 4.36): the project aimed to increase forest and vegetation coverage from an initial level of around 20 percent to eventually reach 75 percent. To mitigate potential negative risks such as the introduction of invasive species, the technical designs incorporated the selection of a variety of indigenous species that are adaptable to the local context, have better resistance to pests and diseases, and can help maintain ecological balance and stability. 84. Pest Management (OP 4.09): although the project did not finance the procurement of pesticides or equipment for pesticides application, the reforestation, plantation and other gardening activities would have resulted in increased pesticides use. To address this, a Pest Management Plan was developed and implemented as part of the ESMP. The plan aimed to enhance the capacity of constructors and the operating entity in minimizing the use of pesticides, ensuring safe application, and promoting integrated pest management. 85. Physical Cultural Resources (OP/BP 4.11): a survey was conducted as part of the EIA, revealing that one of the tourist service stations built under the project was located in close proximity to a church, some 51 meters away. Although the church is not formally categorized as a cultural relic, it holds significant historical value dating back approximately one hundred years. To address this concern, an action plan was included in the ESMP, and mitigation measures were adopted. Public consultations were conducted with the local stakeholders, and protective measures were implemented during the construction activities to ensure the preservation and safeguarding the church. 86. Grievance redress. An effective grievance redress mechanism was set up and operated at the PIUs to respond to concerns and complaints on time. During project preparation and implementation, no formal appeal cases were raised, but in October 2019, a complaint from a local NGO15 was sent to the PMO, expressing concerns over the impacts of construction on the newly formed bird habitat. The PMO took measures immediately, including suspending construction activities during wintertime, optimizing the design activities to minimize impact, and engaging stakeholders to develop a protection plan. Procurement 87. The project was in full compliance with World Bank procurement guidelines and procedures. Procurement activities followed a detailed Procurement Plan that was updated regularly and was conducted in accordance with the agreed procedures and rules as specified in the legal documents. Procurement issues and delays were flagged for action and resolution in the semiannual progress reports, and actions were taken on time to address them. The progress of bidding, contracting, and construction 15 Huainan Birds Lover Association. Page 30 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) was well monitored, and all contract changes, such as variation orders, were well documented and followed the necessary World Bank approval procedures. Financial Management (FM) 88. FM was in full compliance with World Bank guidelines and procedures. The project had a good FM system that performed generally very well. Project accounts were prepared on time and audited, as covenanted, within six months of the end of the calendar year. All audited opinions were clean, and no significant FM-related issues were identified by the audited reports. Compliance with Legal Covenants 89. The counterpart complied with all the legal covenants stipulated in the Loan and Project Agreements on time. C. BANK PERFORMANCE Rating: Satisfactory Quality at Entry 90. A team of World Bank experts, including fiduciary experts, environment and social specialists, and water resource, urban, geotechnical, and mining specialists, supported the design of this highly relevant project. The World Bank effectively fulfilled its fiduciary role by conducting procurement and FM assessments of the implementing agency. Additionally, it ensured the development and disclosure of necessary safeguards documents before project appraisal. The design followed lessons learned from China and around the world and was informed by analyses, diagnostics, and consultations to ensure that the selected site could be effectively and safely remediated and address the needs of the local communities. The activities financed supported the achievement of the two stated outcomes as well as a longer-term institutional capacity outcome. The World Bank made sure that the project benefited both men and women by ensuring equal access to project-financed investments and focusing on women’s vocational skill enhancement. Weaknesses at entry were the noted RF design shortcomings, partial effectiveness of risk mitigation measures, and underestimation of land to be acquired. Quality of Supervision 91. The World Bank made considerable efforts to facilitate project implementation by (a) providing consistent support to technical and project management aspects to ensure strong technical implementation and achievement of the desired outcomes; (b) carrying out 18 missions including virtual support missions during COVID-19 times to ensure consistent support and project monitoring; (c) fielding technical teams to follow up on progress in between implementation support missions; (d) paying specific attention to procurement, FM, and safeguards issues by assigning specialized staff to join supervision missions to review progress and resolve implementation issues; (e) proactively and efficiently reporting to World Bank management on implementation progress and the status of PDO achievement through elaborate and candid Aide Memoires and Implementation Status and Results Reports (ISRs); (f) carrying out restructurings to ensure the project’s continued relevance to the borrower’s priorities, overcome implementation monitoring challenges, and ensure fulfillment of World Bank safeguards policies; and (g) Page 31 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) ensuring the sustainability of built assets through training and hands-on support and learning by doing (see section IV.D). The World Bank’s implementation support, both in the field and online, was appreciated by the client who considered it as problem solving and knowledge sharing as reported in past field and virtual supervision missions. Justification of Overall Rating of Bank Performance 92. The rating is informed by the overall strong design of the project, with noted M&E design weaknesses that were mostly fixed during implementation, the strong focus on technical and operational support provided by the World Bank during the implementation phase, and the effectiveness of the restructurings in keeping the project relevant to changing settings and borrower’s priorities and in removing implementation challenges. D. RISK TO DEVELOPMENT OUTCOME 93. O&M of built assets was a continuous point of discussion between the World Bank and the borrower during implementation; a dedicated indicator, ‘Project site management entity established and operational’, was included in the RF to make sure this aspect is continuously monitored. Capacities were built within the PMO and the PIUs, and an O&M operator, Huainan Construction Investment and Development Company, was appointed by the HMG to effectively manage and maintain the remediated project site and new public spaces. The operator’s actions were agreed in an asset management plan that included a sustainable financial plan that relies on increasing private revenues and reduced government support over time, while securing local employment (500 new jobs in the next five years). Additionally, dedicated budgets from relevant government sources were allocated to support the O&M activities of the developed infrastructure until sufficient revenue is collected to independently finance O&M functions. Nonetheless, there are still potential challenges that could jeopardize the sustainability of the project outcomes, such as irregular government budget allocation during periods of economic downturn, while simultaneously needing to improve the financial viability of the operating entity. V. LESSONS AND RECOMMENDATIONS 94. A well-prepared and approved regional development plan is critical to the success of the project. The project area is located in post-mining regions that overlap with both the Shungengshan National Forest Park and a new urban development area. Given the context of complicated land acquisition issues and the high risk associated with urban development, the HMG finalized the SSADMP. This plan provided the necessary guidance for the entire project implementation. The project design was adjusted to align with the SSADMP, reflecting the change in government priorities to address development challenges primarily in the public sector while enabling economic activities in the market. The restructured project not only achieved its primary objective of restoring the ecological environment of the site but also created public spaces, benefiting a larger number of residents. 95. Underestimation of land acquisition requirements lead to implementation delays. The project suffered implementation delays due to underestimation of land acquisition needs and lack of understanding on its complexity by the concerned parties, during the appraisal stage. The effects on project implementation could have been minimized and better managed if capacity had been built early on, involving participation of concerned institutions and affected communities in resettlement planning, Page 32 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) decision-making, and monitoring of the resettlement. RAPs should accurately address land acquisition requirements as well as the specific needs and aspirations of affected communities. 96. Timely triggering of World Bank’s safeguards policy could maximize the project’s positive impacts and long-term outcomes. World Bank safeguards policy OP/BP 4.04 on Natural Habitats was triggered during project implementation in direct response to the emergence of a new natural habitat for migratory birds in the remediated project site. Protection measures were put in place, and even though they created some construction implementation delays, they supported the site’s biodiversity and created another point of visitor interest in the new public spaces. 97. Early discussion of site O&M arrangements following a market-driven approach ensures sustainability. Given the need for proper O&M of project assets, the World Bank discussed with the client O&M arrangements early on in project implementation to ensure that the built assets (such planted vegetation, flood discharge canals, and tourist facilities) are properly operated and maintained. An indicator was included in the RF to further ensure close monitoring of this aspect. O&M arrangements were secured at closing by the HMG establishing a professional operator with an approved asset management plan. The asset management plan includes a financial plan for the operator to become a market-driven company with a gradual decrease of government budget allocation, while creating local jobs in years. . Page 33 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS A. RESULTS INDICATORS A.1 PDO Indicators Objective/Outcome: To remediate the JiuDa mining site in Huainan City Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion KPI #1 Dump sites closed Hectare(Ha) 0.00 39.00 94.90 94.90 under the project 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 Comments (achievements against targets): Target achieved (100%). The result was achieved by closing 22 dump sites over a total area of 94.90 hectares and clearing them from solid wastes alongside enforcement of the 2014 regulation banning new solid waste dumping. The project financed the waste clearing while the Datong local government financed enforcement actions to maintain the site clear of new waste. The original target was underestimated and was revised up during the September 2020 restructuring. Source: Borrower's completion report based on Datong District Government report for closing solid waste dumpsites. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion KPI #2 Improved water Text Below Class V Class V Class V Class V Page 34 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) quality in the remediated 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 area (water quality grade) Comments (achievements against targets): Target achieved. Class V Standards (100%), and some locations exceeded Class V and met Class IV Standards. The result reflects surface water quality at 32 locations in the remediated JiuDa site across an aggregated water area of 46.3 hectares (BOD/COD/TP were reported at 0.9 to 2.4 mg/L, 11 to 15 mg/L, and 0.022 to 0.032 mg/L respectively) according to China’s environmental quality standards for surface water (GB3838-2002), as the result of project-financed waste clearance, planting, and removal of silted pollutants by dredging water canals, creeks, and lakes. This is compared to a baseline water quality worse than a Class V standard (BOD/COD/TP were reported greater than 10 mg/L, 40 mg/L and 0.4 mg/L respectively), exceeding the upper limits by 8-141 times, respectively. Additionally, 17 monitored locations met the Class V standards (BOD/COD/TP below 10 mg/L, 40 mg/L and 0.4 mg/L respectively). The values were gathered by an independent external monitoring consultant in April 2018 to February 2022. Standard details are available at https://www.mee.gov.cn/ywgz/fgbz/bz/bzwb/shjbh/shjzlbz/200206/W020061027509896672057.pdf Source: Borrower's completion report based on information from Huainan Environment Monitoring Station under Municipal Ecology and Environment Bureau, the Environmental External Monitoring agency of the project. Objective/Outcome: To create a public space in JiuDa mining site in Huainan City Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion KPI #3 Satisfaction of users of Percentage 0.00 75.00 75.00 97.93 public space created under the project 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 KPI #3.1 Satisfaction of Percentage 0.00 75.00 75.00 98.29 female users 23-Sep-2014 30-Jun-2022 31-Dec-2022 31-Dec-2022 Page 35 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) KPI #3.2 Satisfaction of male Percentage 0.00 75.00 75.00 97.49 users 23-Sep-2014 30-Jun-2022 31-Dec-2022 31-Dec-2022 Comments (achievements against targets): Target exceeded (131%, 131% of female target and 130% of male target ). Socio-economic beneficiary surveys were conducted by an external monitoring consultant in collaboration with the Huainan PMO and the Datong District Government in September-October 2022, showing that among the 2,027 interviewees, 1,985 persons or 97.93 percent were satisfied with the public space created under this project. 97.49 percent of the interviewed males expressed satisfaction, as did 98.29 percent of interviewed females. The breakdown indicators for males and females were added in the September 2020 restructuring. Source: Borrower's completion report based on the results of the satisfaction surveys. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion KPI #4 Public space created Hectare(Ha) 0.00 393.00 379.67 643.57 (public park, tourist/exhibition centers and 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 associated entertainment/ recreational facilities) Comments (achievements against targets): Target exceeded (169%). The result reflects the total remediated land area (695.8 hectares, where civil works took place), minus the area of the sanitary landfill site (11 hectares the footprint area) and the water surface areas (43.43 hectares), where public space was not created. The public space includes forestland and grassland, flower and fruit picking gardens, citizen plazas and gym facilities, tourist centers, curbside service centers, and green paths. This target was revised in the September 2020 restructuring. Page 36 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Source: Borrower's completion report. Objective/Outcome: To remediate and create a public space at the JiuDa mining site in Huainan City Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion KPI #5 Direct project Number 0.00 20,000.00 20,000.00 55,000.00 beneficiaries 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 KPI #5.1 Female Percentage 0.00 47.00 47.00 49.19 beneficiaries Comments (achievements against targets): Target exceeded (275%, 104% of female target). The result reflect the 55,000 residents of Datong Community and Jiulonggang Township of Datong District, where 49 percent of the population are females. The beneficiaries benefited from 1) improved water quality and reduced flood risks thanks to the rehabilitation of flood canals and lakes; 2) improved ecological environment due to reduced pollution and increased green coverage; 3) increased urban biodiversity (migratory birds) as a result of the area’s remediation; 3) new public spaces for leisure; 4) new environmental amenities; 5) reduced health risks from contaminated water, soil, and air; and 6) new jobs in site operation. The breakdown indicator for female beneficiaries was added in the September 2020 restructuring. Source: 7th National Population Census Communique issued by Datong District Statistical Bureau on July 9, 2021. Page 37 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) A.2 Intermediate Results Indicators Component: Component 1: Environmental Remediation and Water Management Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion IRI 1.1 Land area remediated Hectare(Ha) 0.00 410.00 350.00 418.96 with improved vegetation coverage 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 Comments (achievements against targets): Target exceeded (120%). The result reflects only the remediated area that was planted. It was calculated based on the following completed project- financed works, minus 180.2 hectares of overlapping vegetated areas. Grass Planting Tree Planting (ha.) (ha.) Zone 1 73.28 74.31 Zone 2-1 88.43 81.59 Zone 2-2 62.00 42.65 Zone 3-2 103.00 70.81 Enhanced remediation 3.09 Total (ha) 329.80 269.36 The target was revised during the restructuring in September 2020. Source: Borrower's completion report based on statistics of contract works completed and asset transferred to the site operating entity. Page 38 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion IRI 1.2 Vegetation cover of Percentage 20.00 75.00 75.00 75.05 the remediated areas (Percentage) 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 Comments (achievements against targets): Target achieved (100%). The result reflects the percentage of aggregated remediated areas on 698.16 ha (including newly vegetated remediated area of 418.96 hectares plus a baseline of 279.2 hectares against the total project site area of 930 hectares. This indicator was introduced in the September 2020 restructuring. Information source: Borrower’s completion report based on information from the contractors. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion IRI 1.3 Leachate collected Cubic 0.00 8,400.00 350.00 312.00 and treated for safe disposal Meter(m3) annually 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 Comments (achievements against targets): Target substantially achieved (89%). The result reflected the average volume of collected leachate from the remediated site per year, starting in 2019 (320 m3 in 2019, 320 m3 in 2020, 408 m3 in 2021, and 200 m3 in 2022). Once collected, the leachate was safely transferred by the operator's closed trucks to the No.3 WWTP of Huainan Municipality under the supervision of the environmental authority. The WWTP's effluent met China’s WWTP standards. The target was revised in the September 2020 restructuring. Page 39 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Information source: Borrower’s completion report based on the operation logs of the landfill operators. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion IRI 1.4 Area protected Square 0.00 9.00 9.00 9.30 against 1/30 year floods kilometer(km2) 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 Comments (achievements against targets): Target exceeded (103%). This indicator reflects the project site area protected from torrential floods, which may cause soil erosion, losses of agriculture and greenery, and damages to the infrastructure (like roads, green paths) within the site. This is the result of the rehabilitation of the flood drainage system (10 water canals of 7.61 km in total length) plus two lakes whose flood water storage capacity was increased by 441,000 m3 from 453,000 m3 to 894,00 m3 in total thanks to dredging of the lake sediments and enhanced water regulation capacity by reinforcing lake dikes and construction of sluice gates for better controlled water level. These works protected 9.3 hectares of land from runoff at 178.40 m3/s, which is much higher than the 1/30 year flood runoff (31.05 m3/s) according to the verification via hydraulic modelling by the project management consultant. Source: Borrower's completion report and World Bank reports. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion IRI 1.5 Length of green paths Kilometers 0.00 28.48 28.82 36.85 constructed 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 Page 40 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Comments (achievements against targets): Target exceeded (128%). The result reflects four types of green paths constructed within the remediated areas: Grade I- 6.58 km; Grade II- 3.426 km; Grade III- 15.88 km; and 10.959 km of wooden walking paths. These green paths connect the new roads built under the project and provide access to new public spaces. This indicator was added in the September 2020 restructuring. Information source: Borrower’s completion report based on information from the construction contractors. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion IRI 1.6 Length of the flood Kilometers 0.00 8.90 8.09 7.61 discharge canals rehabilitated 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 Comments (achievements against targets): Target substantially achieved (94%). The result reflects the total length of ten rehabilitated discharge canals: Longitudinal Routing (LR) #1 - 299.6 meters, LR #2 - 459.9 meters, LR #3 – 1,230 meters, LR #4 - 523.4 meters, LR #5 - 321.4 meters, LR #6 - 873.3 meters, LR #7 and its linked tributaries – 2,005.4 meters, LR#8 - 719.3 meters, LR#9 - 454.9 meters, and HR #1 - 726.5 meters. The rehabilitation activities included reconstruction and greening of dikes, connection with the site’s drainage system, dredging, and construction of water structures and facilities, such as sluice gates. This indicator was added as part of the September 2020 restructuring. Information source: Borrower’s completion report based on information from the contractors. Component: Component 2: Infrastructure Improvement and Site Utilization Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Formally Revised Completion Page 41 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Target IRI 2.1 Length of road Kilometers 0.00 8.30 6.07 5.44 rehabilitated/constructed 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 Comments (achievements against targets): Target substantially achieved (90%). The result reflects three new constructed roads in JiuDa site: Jiukong Road - 1.182 kilometers, Yanshan Road - 3.605 kilometers, and Wangxiang Road - 0.655 kilometers, including associated road works, such as drainage systems, road lighting systems, and safety facilities. The indicator was revised as part of the September 2020 restructuring. Information source: Borrower’s completion report based on information from the contractors. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion IRI 2.2 Number of people Number 0.00 430.00 430.00 495.00 employed through site utilization activities 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 IRI 2.2.1 Number of women Number 0.00 206.00 206.00 213.00 employed through site utilization activities Comments (achievements against targets): Target exceeded (115%, 103% of female target). The result includes 445 people from local communities who have been hired as labor since the completion of works and remain employed by the site operating entity for site maintenance, such as irrigation, trimming, site security, cleaning, and various greening Page 42 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) activities; 35 people employed to operate the tourist center, curbside service stations, and pumping stations, as well as drivers; and 15 employed management staff. Source: Borrower's completion report based on information from the site operating entity. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion IRI 2.3 Number of visitors to Number 0.00 100,000.00 100,000.00 110,000.00 public space created 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 IRI 2.3.1 Number of Women Number 0.00 48,000.00 48,000.00 54,000.00 visitors to public space created Comments (achievements against targets): Target exceeded (110%, 112% of female target). The result reflects the total number of visitors from January 2023 to May 2023 only. The visitors were the nearby residents (50 percent of the result) for daily activities such as running, jogging, dancing, and bird watching, and regular family visitors during weekend and holidays (remaining 50 percent of the result). Source: Borrower's completion report based on information from the site operating entity. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion IRI 2.4 Total areas of tourist Square 0.00 3,998.00 3,998.00 4,458.00 Page 43 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) service center constructed Meter(m2) 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 Comments (achievements against targets): Target exceeded (111%). The result reflects the constructed floor area of the tourist center’s main building and auxiliary buildings for administration, water and power supply, and miscellaneous service facilities for security monitoring and O&M. Some basic operating facilities, such as car and bus parking areas with electrical charging poles, interior decoration of all buildings, heating ventilation and air conditioning, furniture, lighting, and sanitation facilities were also financed within the tourist service center. This indicator was added in the September 2020 restructuring. Source: Borrower's completion report and World Bank reports. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion IRI 2.5 Number of Curbside Number 0.00 5.00 5.00 5.00 Service Stations with Public Toilets Constructed 23-Sep-2014 30-Jun-2022 31-Dec-2022 31-Dec-2022 Comments (achievements against targets): Target achieved (100%). The result includes one small service station with a footprint of 5352 m2 and a constructed floor area of 762 m2 with car park for thirty vehicles and public sanitary toilets; and four curbside service stations with a constructed floor area of 150 m2 each, furnished with public sanitary toilets, and rooms for site maintenance facilities and small businesses. This indicator was added in the September 2020 restructuring. Source: Borrower's completion report and World Bank reports. Page 44 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion IRI 2.6 Number of Irrigation Number 0.00 3.00 2.00 2.00 Pumping Stations Constructed 23-Sep-2014 30-Jun-2022 31-Dec-2022 31-Dec-2022 Comments (achievements against targets): Target achieved (100%). The project financed the construction of two irrigation pumping stations, including their structures, pumping equipment, power supply, and associated networks for water distribute on site. The pumping stations irrigate the flower and fruit gardens and other farming activities for tourism purposes. This indicator was added as part of the September 2022 restructuring. Source: Borrower's completion report and World Bank reports. Component: Component 3: Capacity Building and Technical Assistance Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion IRI 3.1 Number of people Number 0.00 965.00 965.00 1,157.00 trained at the skills training institutions 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 IRI 3.1.1 Number of women Number 0.00 463.00 702.00 trained at the skills training institutions Comments (achievements against targets): Page 45 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Target exceeded (120%, 152% of female target). 1,157 people, including 702 females, were trained by the Skill Training Center under the Datong District Human and Social Security Bureau as elderly care workers, baby care workers, household service personnel, security guards, electricians, welders, car maintenance workers, cooks, and gardeners. The training was conducted in 17 sessions between September 2020 and September 2022. Of these, 1,092 people (94 percent) received job skill certificates. The trainees were from Jiulonggang Town and Datong Community of Datong District where the project site was located, and a substantial portion of them was from project affected households. The female breakdown indicator was added in the September 2020 restructuring. Source: Skill Training Reports from September 202 to September 2022 prepared by the PMO. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion IRI 3.2 Technical Guidelines Text Non-Existent final reports disclosed final reports disclosed Final reports disclosed for mining subsidence area rehabilitation & 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 redevelopment Comments (achievements against targets): Target achieved (100%). Four reports with guidelines for mining subsidence area rehabilitation and redevelopment were prepared and disseminated on Huainan Development Reform Website on November 12, 2021[1] and through dissemination workshops held in November 2021 for 44 sector stakeholders. The reports were: • Report on Risk assessment, Prevention and Mitigation of Mining Subsidence Areas: it innovatively sets up the framework for comprehensive mining subsidence area risk assessment, prevention, and mitigation, taking in multi-dimensional perspectives to the approach: ecological, environmental, geological, sociological and economic. A range of risks like environmental pollution, ecological deterioration, water and soil erosion, flood, damage of landform in the mining subsistence regions were investigated and assessed for Huainan mining subsidence areas (beyond the project areas) , suggestions and recommendations for risk prevention and mitigation were proposed, and they will be incorporated into ecological rehabilitation, spatial , and land remediation planning. Page 46 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) • Report on Technical Guidance of Comprehensive Rehabilitation of Mining Subsidence Areas: by learning domestic and international experiences and lessons, the report proposed Huainan context-oriented remediation technologies, ecological rehabilitation and farmland reclamation from remediated subsidence mining areas. This report provided technical advice for Huainan and elsewhere in China for the comprehensive remediation of subsidence mining regions. • Report on Comprehensive Remediation Standards of Subsidence Mining Areas: By reviewing international and national standards, the report proposed remediation frameworks under multiple scenarios for the use of farmland, construction land, wetland, parks, and subsidence areas due to karst collapse. Post-monitoring indicators were also proposed. This provided the basis for developing the Huainan-context standards. • Report on Comprehensive Remediation Policy and Mechanism: it includes topics like people-oriented land acquisition and resettlement and social security policy; integrated planning via comprehensive governance for restoring the ecology, creating jobs, facilitating ecological transformation, and upgrading of urban industries; long-term remediation monitoring; and public participation. In summary, the complete policy and mechanism will secure the ecological transformation of Huainan City while boosting local development. This indicator was revised in the September 2020 restructuring. Source: Borrower's completion report, https://fgw.huainan.gov.cn/xmgs/551594483.htm Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion IRI 3.3 Project site Yes/No No Yes Yes Yes management entity established and operational 23-Sep-2014 30-Jun-2021 31-Dec-2022 31-Dec-2022 Comments (achievements against targets): Target achieved (100%). In December 2021, the municipal government approved an asset management plan for the remediated site. A site management entity (i.e., Huainan Tourism Development Co.) which is a subsidiary of the state-owned enterprise (i.e., Huainan Jianfa (Construction and Development) Group Co. Ltd.) was formally established in March 2022, and its operation was launched in May 2022 to oversee the management of the project-financed assets. Page 47 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Source: Borrower's completion report and World Bank reports. Page 48 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) B. KEY OUTPUTS BY COMPONENT Objective/Outcome 1: Remediate the JiuDa mining site in Huainan city 1. Dump sites closed under the project Outcome Indicators 2. Improved water quality in the remediated area 1. Land area remediated with improved vegetation coverage 2. Vegetation cover of the remediated areas Intermediate Results Indicators 3. Leachate collected and treated for safe disposal annually 4. Area protected against 1/30 year floods 5. Length of the flood discharge canals rehabilitated 1. Closure of 94.90 ha of Datong dumpsites 2. Improvement of lake water quality in the remediated areas to Class V–Class IV 3. Number of direct beneficiaries, 55,000 (of whom 49.19 percent female) 4. Land area remediated with improved vegetation coverage of 418.96 ha Key Outputs by Component 5. Remediation with improved vegetation coverage of 75.05 percent in remediated (Linked to the achievement of the Objective/ areas Outcome 1) 6. Collection of 312 m3 of leachate annually in Datong dumpsite including treatment for safe disposal. 7. Protection of 9.30 km2 against 1/30 year floods 8. Construction of 36.85 km of green paths 9. Rehabilitation of 7.61 km of flood discharge canals Objective/Outcome 2: Create a public space at the JiuDa mining site in Huainan city 1. Satisfaction of users of public space created under the project (disaggregated by male/female) Outcome Indicators 2. Public space created (public park, tourist/exhibition centers and associated entertainment/ recreational facilities) 3. Direct project beneficiaries (of whom women) Intermediate Results Indicators 1. Length of road rehabilitated / constructed Page 49 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) 2. Length of green paths constructed 3. Number of people employed through site utilization activities (of whom women) 4. Number of visitors to public space created (of whom women) 5. Total areas of tourist service center constructed 6. Number of curbside service stations with public toilets constructed 7. Number of irrigation pumping stations constructed 1. Satisfaction of users of public space created under the project reaching 97.93 percent 2. Satisfaction of male users of public space created under the project reaching 97.49 percent 3. Satisfaction of female users of public space created under the project reaching 98.29 percent Key Outputs by Component 4. Creation of 643.57 ha of public space (public park, tourist/exhibition centers and (Linked to the achievement of the associated entertainment/ recreational facilities) Objective/Outcome 2) 5. Number of direct beneficiaries, 55,000 (of whom 49.19 percent female) 6. Construction and rehabilitation of 5.44 km of roads 7. Employment of 495 people (of whom 213 female) through site utilization activities 8. Visit of 110,000 people to public place created (of whom 54,000 female) 9. Construction of 5 curbside service stations with public toilets 10. Construction od 2 irrigation pumping stations Page 50 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION A. TASK TEAM MEMBERS Name Role Preparation Xiaokai Li Task Team Leader Alejandro Gerez Counsel Frank Van Woerden Environmental Engineer Jian Xie, Feng Ji Environmental Specialists Yuan Wang Procurement Specialist Yi Dong Financial Management Specialist Chaogang Wang, Zhefu Liu Social Development Specialists Hardy Wong Urban Water/Environment Specialist Michael Feiss Geotechnical/Mining Engineer Yan Li, Hongwei Zhao Economic Analyst Isabel Duarte A. Jr. Program Assistants Sandra Walston Temporary Sing Cho Urban Specialist Supervision/ICR Minghe Tao Task Team Leader Hongkun Yang, Yan Zhang Procurement Specialists Yi Dong Financial Management Specialist Shuang Zhou, Guoxing Zhou, Chaohua Zhang Social Development Specialists Cuong Duc Dang Economist Hongwei Zhao Team Assistant Feng Ji Environmental Specialist Page 51 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) B. STAFF TIME AND COST Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY13 18.000 95,320.65 FY14 29.250 192,396.48 FY15 35.675 208,276.30 Total 82.93 495,993.43 Supervision/ICR FY16 9.550 42,971.65 FY17 13.275 58,538.20 FY18 19.077 117,187.78 FY19 22.295 128,649.64 FY20 20.039 101,666.87 FY21 23.184 116,334.97 FY22 18.907 108,570.06 FY23 19.292 126,173.64 Total 145.62 800,092.81 Page 52 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) ANNEX 3. PROJECT COST BY COMPONENT Revised Costs Costs at Actual at Loan (September Appraisal Closing 2020) Component % of Total at Total IBRD Total IBRD Total IBRD Appraisa l Environmental Remediation and Water 89.53 63.61 57.87 38.21 70.00 31.56 78 Management Infrastructure Improvement and Site Utilization 39.72 27.09 24.18 15.97 16.90 16.31 43 Capacity Building and Technical Assistance 18.48 3.09 3.02 3.02 3.61 1.76 20 Subtotal 147.73 93.79 85.07 57.20 90.51 49.63 61 Contingencies 14.46 0.00 7.61 0.00 0.00 0.00 n.a. Interest During Construction and Commitment Fee 5.96 5.96 5.55 5.55 5.55 5.55 93 Front-End Fees 0.25 0.25 0.25 0.25 0.25 0.25 100 Total 168.40 100.00 98.48 63.0016 96.31 55.43 57 Note: US$1 = CNY 6.9646 on December 31, 2022. 16 The datasheet shows the revised IBRD amount is US$55.43 million, which is incorrect due to a system glitch. Page 53 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) ANNEX 4. EFFICIENCY ANALYSIS 1. Source of Economic Benefits 1. Following the economic analysis methodology at appraisal, the economic benefits at the completion of the project encompass not only the benefits brought by the project-financed construction, such as saving of residents’ medical expenses, appreciation of surrounding land, and road construction, but also forest ecological benefits resulting from green space and green road created by the project. However, as it is challenging to estimate these latter benefits as well as the impact on tourism from the creation of the new bird habitat and return of birds to the site, these benefits are not included in the benefit calculation. 1.1 Local People’s Medical Expenses Savings 2. The project had a significant impact on the health of local people by effectively controlling groundwater and surface water pollution as well as reducing agricultural losses, which, in turn, lead to a decrease in waterborne diseases and related medical expenses. According to the ‘Huainan 2021 Statistical Yearbook’, the average per capita medical expenditure was about CNY 140 per year. Taking this into account, there was an estimated savings of CNY 1.1304 million in medical expenditure, including hospitalization costs, outpatient treatments, medication expenses, and health care services. These savings represent the annual monetary benefits derived from improved public health resulting from the project. 1.2 Land Value Appreciation 3. The project’s positive environmental impact and improved infrastructure enhanced the attractiveness of the surrounding area, leading to an appreciation in land value. This appreciation is driven by factors such as increased desirability for residential and commercial purposes, improved connectivity, and enhanced amenities. The projected increase in land transfer prices, from CNY 200,000 per mu at appraisal to CNY 1.7 million per mu at completion, indicates the substantial potential for capital gains for landowners and investors in the region. The appreciation value of CNY 328 million represents an annual estimate and demonstrates the long-term economic benefits derived from the project. 1.3 Economic Benefits of Road Construction 4. Referring to the algorithm in the PAD, on the basis of the traffic model, the benefit-cost analysis method is used to calculate the benefits generated by the construction of the road foundation after improving the operating conditions of the transportation system in the project area. These benefits include savings in vehicle operating costs, travel time savings, and reduced traffic accident losses as follows: • Vehicle operating cost savings. The construction of roads within the project area resulted in several economic advantages, including savings in vehicle operating costs. Improved road conditions and reduced traffic congestion lead to lower fuel consumption and maintenance expenses for vehicles. These savings are calculated based on factors such as the average distance traveled, fuel efficiency, fuel prices, and vehicle maintenance costs. By quantifying these factors, the annual monetary benefits derived from reduced vehicle operating costs were estimated. Page 54 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) • Travel time savings. The enhanced infrastructure will also contribute to significant time savings for commuters and travelers within the project area. Reduced congestion and improved road conditions will result in shorter travel times, allowing individuals to reach their destinations more quickly. The value of residents’ travel time can be assessed by considering factors such as average income levels, the opportunity cost of time, and the number of people benefiting from reduced travel time. By quantifying these factors, one can estimate the economic benefits associated with saved travel time. • Reduced traffic accident losses. Investments in road construction and infrastructure improvements are essential for ensuring road safety and reducing the number of traffic accidents. By implementing measures such as widened lanes, improved signaling systems, and better road markings, the project will contribute to a decrease in traffic accidents and associated losses. The economic evaluation accounts for factors such as medical expenses, vehicle repair costs, insurance claims, and the intangible cost of human lives lost or injured in accidents. By quantifying these factors, one can estimate the annual economic benefits derived from reduced traffic accident losses. 1.4 Forest Ecological Benefits 5. The project’s focus on ecological restoration and the creation of green spaces resulted in various ecological benefits, particularly in relation to forests. Increased vegetation coverage, greenways, and public spaces contribute to water conservation, soil conservation, and carbon sequestration. These ecological benefits have significant economic value, as they have a positive impact on air quality, water resources, and overall environmental sustainability. By quantifying the ecological benefits, such as the economic value of carbon sequestration and oxygen release, the annual forest ecological benefits derived from the project were estimated. 2. Economic Analysis Hypothesis 6. The analysis used similar assumptions to those used at appraisal: • The base year is 2021, and economic indicators such as per capita GDP, per capita disposable income, and annual growth rate of per capita GDP are considered in accordance with the ‘Statistical Communiqué on National Economic and Social Development of Huainan City in 2021’. • Duration of calculation is 25 years, that is, 2021–2045. • The engineering residual value, 5 percent of the total investment, is recovered at the end of the evaluation period. 3. Results of Economic Analysis 7. After calculation, the economic benefits of the project are as follows: • ENPV at a discount rate of 10 percent is CNY 646.25 million. • EIRR is 18.85 percent. • Payback time is 9.39 years. Page 55 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) 8. The EIRR of the project at closing was greater than 10 percent, which implies that the economic benefits surpassed the threshold for capital investment projects set by the Chinese Government and was hence considered acceptable. 9. The ENPV and EIRR of the economic analysis at closing are shown in table 4.1 and are compared to the appraisal stage. Table 4.1. Comparison of the Economic Analysis Main Indicators Key Indicator At Appraisal At Completion Percentage of Appraisal ENPV (i = 10%) CNY 403.00 million CNY 646.25 million 160.4 EIRR 23.70% 18.85% 79.6 10. According to the calculation model of economic analysis at appraisal, the EIRR of the project at the appraisal stage was 23.70 percent. After deducting the project area development income that was adjusted and dropped after the restructuring, other values remain unchanged, and the recalculated EIRR was 20.82 percent, which is slightly higher than the EIRR of 18.85 percent at completion. 11. Sensitivity analysis. A sensitivity analysis of the project was conducted based on the following factors: a 10 percent increase in project engineering investment, a 10 percent decrease in income, a 10 percent increase in O&M costs, and a one-year project delay. The analysis’ results indicate that when the project’s investment increases by 10 percent, income decreases by 10 percent, and O&M costs increase by 10 percent individually, the impact on the project’s EIRR is minimal, with a sensitivity coefficient of less than 1.00. However, when all three situations occur simultaneously, the impact on project income is more significant, with a sensitivity coefficient of 1.22 and the EIRR drops to 16.55 percent (still greater than the 10 percent benchmark rate of return). The one-year postponement of project commissioning has less impact on the project’s EIRR. Therefore, the project demonstrates strong economic risk resilience. The detailed results of the economic sensitivity analysis are presented in table 4.2. Table 4.2. Economic Sensitivity Analysis Results ENPV (CNY, EIRR Sensitivity Deviation Rate Item millions) (%) Factor (%) Benchmark yield 10.0% 1. Base case 646.25 18.85 2.10% increased investment 605.52 17.76 0.58 80.8 3. 10% reduced revenue 533.78 17.56 0.68 68.6 4. 10% increased O&M costs 639.13 18.61 0.13 365.1 5. 2, 3, 4 occur at the same time 485.93 16.55 1.22 38.4 The start of production was postponed for one 621.90 18.61 year Page 56 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS The following comments were received from the Project Management Office of Huainan Mining Area Rehabilitation Project on June 20, 2023: Dear Mr. Tao and the World Bank team members, We have received your email regarding the World Bank’s preliminary outcome rating of the Huainan World Bank financed project. We sincerely appreciate your continuous support and guidance throughout this project. After thorough review, we hold a different view on the World Bank’s preliminary outcome rating of the project. We believe the World Bank’s rating should be revised to a "Satisfactory" instead of "Moderately Satisfactory." We would like to present the following reasons to support our viewpoint: (1) After the Mid-Term restructuring, the World Bank loan was reduced from US$100 million to US$63 million. The actual use of the loan amount of US$55,427,600, the loan fund utilization rate of 87.98%. (2) Although the total loan from the World Bank was reduced after the Mid-Term restructuring, the performance indicators were fully achieved, with some even exceeding the targets. (3) Force Majeure and Project Extension: The primary reason for the project extension was the three-year impacts of the COVID-19 epidemic, which constituted a force majeure event. The project’s timeline was extended by one and a half years with the World Bank’s approval, considering the pandemic’s adverse effects. (4) Main Contents and Reasons for Mid-term Adjustment: (a) Cancellation of Environmental Remediation in Zone C3-1. The cancellation of the environmental remediation in Zone C3-1 was due to difficulties in obtaining land approval, particularly involving significant agricultural and cultivated land. The lengthy approval process required submission to the Ministry of Natural Resources and The State Council. Additionally, the project’s short construction period made it impractical to complete the project on time. (b) Cancellation of Flower Markets, Bonsai Gardens, Nurseries, and Related Facilities: The cancellation of the activities involving flower markets, bonsai gardens, nurseries, and related facilities was influenced by the presence of numerous newly established nursery bases and bonsai production centers in the project area. These existing establishments sufficiently met the public’s demand for flower seedlings. For instance, the Huainan City Jintian flower and bird market, covering an area of 3.987 hectares (59.8 acres), with a construction scale of approximately 47,800 square meters and a private investment of 200 million. By canceling these activities, we could leverage private capital’s role while avoiding redundant government investments in construction. (5) Achievements and Highlights of the Project: (a) Preservation of Wildlife: Mandarin Ducks: Mandarin ducks found a habitat in the Environmental Restoration Area 2-2 of the WB loan project since the autumn of 2018. This exemplifies the remarkable results of the comprehensive management Page 57 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) of the Huainan coal mining subsidence area and the improvement of the ecological environment. Measures taken to protect the Mandarin ducks include forming an island in the middle of Lake 2 (Mandarin Lake) by excavating a 150-meter water system, arranging 100 bionic stumps, and implementing sound barriers. (b) Ecological Restoration and Carbon Sequestration: The project successfully restored 698.16 hectares of vegetation, comprising 329.80 hectares of new arbor forest, 269.36 hectares of new grassland and shrubs, and 279.20 hectares of original high- quality forest. It is estimated that from 2022 to 2030, these trees, shrubs, and grasslands in the project area will sequester approximately 80,800 tons of carbon dioxide equivalent. This not only contributes to emissions reduction and foreign exchange gains but also provides significant development opportunities for the transformation and growth of resource-based cities, such as Huainan City. (c) Personnel Training and Employment: A total of 1,157 individuals received training, surpassing the target value of 965. Out of these, 1,092 individuals successfully completed the training and obtained relevant qualifications. Additionally, a substantial number of individuals secured employment opportunities in proximity to address livelihood concerns. (d) Overachievement of Performance Indicators and Construction Tasks: a) Road Length: The total road length constructed amounted to 5.442 kilometers, significantly surpassing the target value of 4.07 kilometers. b) Forest Fire Monitoring Tower: The construction of a three-story steel structure forest fire monitoring tower encompassing an area of 141.48 square meters. c) Public Service Facilities: Jiulong Lake viewing platform and pontoon bridge, Underwood plank road, sports square, connecting corridors, and tourist ferry vehicles. (e) Social Satisfaction: (i) Satisfaction of Resettlement Individuals: Reached an impressive 98.91%. (ii) Satisfaction of Beneficiaries: Achieved a commendable 98.72%. (f) Project Sustainability: (i) Early Completion of Zhongxing Road: A segment of Zhongxing Road passing through the WB project area, spanning 1.355 kilometers, was completed and opened to traffic before the Huainan World Bank financed project. Initially, Huainan aimed to construct the Zhongxing Road project through public-private partnership (PPP) and facilitate the road’s comprehensive development. The project received WB approval during the transfer and was built using domestic funds following the PPP model. Completion and opening to traffic were achieved in December 2021. (ii) (ii) Sustainable Measures for Environmental Restoration in Zone C3-1: The cancellation of the environmental restoration project in Zone C3-1 can be addressed sustainably through the following approaches: i. Inclusion in the local-funded restoration plan for future environmental restoration initiatives. ii. Introducing social capital to develop the cultural tourism industry in the region’s future development. (iii) Sustainability of Wanxiang Road: After the subgrade’s stable settlement, Wanxiang Road, spanning Jiulong Lake (Lake 3), will be constructed Page 58 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) domestically as per the approved plan. This ensures the project’s long-term sustainability. (g) Replication of the Project: The successful implementation of the Huainan World Bank financed project serves as a significant demonstration for the city’s domestic construction of Chunshen Lake. This endeavor aims to establish six landscape areas, namely: lake ecological practice area, rural leisure resort area, land restoration and expansion area, local heritage display area, urban green corridor health area, and entrance supporting service area. To summarize, Huainan has effectively fulfilled the construction tasks of the World Bank financed project despite the reduction in the loan, with all performance indicators either fully completed or exceeded. The project’s construction has resulted in substantial environmental, ecological, social, carbon sequestration, and economic benefits, while ensuring its sustainability. We kindly request the World Bank evaluation team to adjust the rating of the Huainan World Bank financed project from "Moderately Satisfactory" to "Satisfactory." Thank you sincerely for your attention and consideration. Best regards, Huainan PMO Page 59 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) ANNEX 6. SUPPORTING DOCUMENTS • Borrower’s Implementation Completion Report • Borrower’s Project Feasibility Study Report • Borrowers’ progress reports • Environmental Impact Assessment • Environmental and Social Management Plan • Resettlement Action Plan • Interim unaudited financial reports and audits • Implementation Support Mission Aide Memoires, including MTR Mission’s Aide Memoire, and Management Letters • Implementation Status and Results Reports, No.1 to No. 14 • Loan Agreement and Project Agreement, Loan No. 8512-CN • Procurement Plans • Project Appraisal Document, Report No: PAD1144 • Project Concept Note • Project Information Document - Concept Note and Appraisal Stage • Project Restructuring Papers No.1 RES38447; No.2 RES3844717; No. 3 RES51366 • Integrated Safeguards Data Sheet, ISDSR32161 • Technical Assistance: two studies delivered with four reports18 - (a) Studies on Risk Assessment and Mitigation; (b) Studies on Technologies and Guidelines; (c) Report on Good Practice and Standards; and (d) Report on Policy Making and Institutionalization, of the remediations of Coal Mining Subsidence Areas. See annex 1 IRI 3.2 for details. 17 The restructuring paper No.1 and No.2 were given the same report number due to technical glitch. 18 https://fgw.huainan.gov.cn/xmgs/551594483.html. Page 60 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) ANNEX 7. PROJECT PHOTOS Solid waste dumpsite before the project Closed dumpsite and sanitary landfill site after the project Solid waste scattered in the mining areas before the project Landfill site with standard leachate collection sump, biogas collector (upper left), and torch for biogas flaming Page 61 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Contaminated and topographically fragmented land with geotechnical A new public space established after the project subsidence before the project Grade III green paths help the visitors to closely approach nature - a previously Wooden walkway improves the visitors’ experience and access to green public degraded environment space Page 62 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Grade I green paths and service road (for fire control and site maintenance), Rehabilitated areas covered with greenery with curbside cherry blossom Site before remediation Newly constructed Yanshan Road - linking urban roads and providing access to the remediated site and public space Page 63 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) New tourist center, serving as tourist reception and exhibition of mining A newly created public space attracting visitors activities and city development history Subsidence region turned into lakes, where a new habitat for migratory birds was formed due to improved lake quality water, abundance of food, and a peaceful environment Page 64 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Mandarin ducks - Class II protected birds in China, migrating to the region for A memorial for the previous industrial site on an old cement factory wintering between October and March A rose garden open to the public Page 65 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) Job skill training for affected individuals Training of newly recruited staff for site operation New pumping station to irrigate plants and vegetation of the site by utilizing Curbside service center providing visitors with convenient services and serving site water collected from the site maintenance Page 66 of 67 The World Bank Huainan Mining Area Rehabilitation Project (P133000) ANNEX 8. PROJECT MAP Page 67 of 67