The World Bank Implementation Status & Results Report Reduction and Phaseout of PFOS in Priority Sectors (P152959) Reduction and Phaseout of PFOS in Priority Sectors (P152959) EAST ASIA AND PACIFIC | China | IBRD/IDA | Investment Project Financing (IPF) | FY 2017 | Seq No: 14 | Archived on 13- Jun-2024 | ISR00611 Implementing Agencies: Foreign Environmental Cooperation Center of Ministry of Ecology and Environment 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 06-Apr-2017) The project development objective is to reduce PFOS in selected sectors and enterprises in China in a sustainable manner. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Component 1: PFOS Production Reduction:(Cost 3,200,000.00) Component 2: Reduction of PFOS Use:(Cost 81,230,000.00) Component 3: Policy and Technical Assistance:(Cost 56,080,000.00) Component 4: Project Management:(Cost 8,050,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial 4. KEY ISSUES & STATUS Jun 14, 2024 Page 1 of 11 The World Bank Implementation Status & Results Report Reduction and Phaseout of PFOS in Priority Sectors (P152959) 4.1 Implementation Status and Key Decisions Continued progress has been achieved over the past six months for the electroplating wastewater treatment demonstration, the PFOS-containing waste fire-fighting foam disposal, and other technical assistance activities including the adoption of three new standards. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 013 - 21 Dec Proposed Rating 07 Apr 2017 2023 Political and Governance Moderate Low Low Macroeconomic Low Low Low Sector Strategies and Policies Moderate Low Low Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Moderate Low Low Environment and Social Substantial Substantial Substantial Stakeholders Substantial Moderate Moderate Overall Substantial Substantial Substantial Jun 14, 2024 Page 2 of 11 The World Bank Implementation Status & Results Report Reduction and Phaseout of PFOS in Priority Sectors (P152959) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes To reduce PFOS in selected sectors and enterprises in China in a sustainable manner Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Jan/2017 44.00 15-Dec-2023 44.00 Jun/2024 Comments on The indicator end-target is met, as recorded since Feb 2021 for calendar year 2020. achieving targets This indicator measures overall progress towards reduction of PFOS production and use in various sectors. The target corresponds to the 2015 production (baseline year for the project as reported in the CS-1 consultant project preparation report) for the three main uses still Amount of PFOS used yearly allowed with exemtion under the Stockholm Convention (metal plating, oil production and reduced (Tones/year) RIFA). These three uses are no longer allowed after the 2019 issuance by 11 ministries including the Ministry of Ecology and Environment of the ban on the production, circulation, use, import, and export of PFOS other than acceptable uses. Based on project records and data from the National POPs Chemical Survey and Reportig Information System as reported by FECO through project half yearly progress reports, as of the end of 2020, there was zero annual use of PFOS for metal-plating, enhanced oil recovery, and pest control. The use is therefore considered reduced by the 44 tons reprsenting the 2015 baseline. No Jan/2017 Yes 15-Dec-2023 Yes Jun/2024 Control and monitoring Comments on The indicator end-target is met through the adoption in June 2021 by MEE and the National system for tracking PFOSF achieving targets Bureau of Statistics of the “Statistical survey system of controlled substances of international production and sale established and operational convention on chemicals” (as elaborated in the February 2021 MTR and September 2021 (Yes/No) mission aide-memoires). Jun 14, 2024 Page 3 of 11 The World Bank Implementation Status & Results Report Reduction and Phaseout of PFOS in Priority Sectors (P152959) 0.00 Jan/2017 7,216,500.00 15-Dec-2023 7,200,000.00 Jun/2024 Comments on achieving targets The indicator end-target is met. The direct beneficiaries for the project are defined as including (i) the number of workers in the four enterprises with PFOSF production in 2015 (negligible); (ii) the number of people living in te three counties where these production facilities were located (two counties in Hubei and one county in Fujian) that are now closed (two producers in Hubei/ two producers in Fujian); (iii) the number of workers in metal plating demonstration enterprises (negligible); (iv) the number of workers in participating firefighting foam manufacturers (negligible); and (v) the number of people that previously sprayed PFOS-containing sulfluramid in project areas Direct project beneficiaries and no longer do so. (Number) - Number of people living in the counties with production enterprises in 2015 that are now closed: 1,366,500 (target achieved: all enterprises that were still producing PFOS in 2015 have now stopped production). - Number of people previously spraying sulfluramid in project areas: over 5.85 million. Based on estimate at appraisal from the National Agro-Tech Extension and Service Center (NATESC) that 19,500 village-level cadres would be trained, each training at least 300 villagers (5.85 million in total). Given the latest report from NATESC of 63,056 people trained, it is estimated that that target is at least achieved. Given the lack of reliability of this estimate, possible achievement beyond the target is not reported. Target of percentage female beneficiaries was revised from 50 percent to 47 percent as part Jun 14, 2024 Page 4 of 11 The World Bank Implementation Status & Results Report Reduction and Phaseout of PFOS in Priority Sectors (P152959) of the March 2023 restructuring to reflect a more detailed accounting methodology. It should be noted that although the percentage of female beneficiaries may decrease by three percent, the absolute number of female beneficiaries increases compared to that estimated at the project appraisal due to that the total number of direct beneficiaries exceeds the designed target significantly. In March 2023, additional female-orientied RIFA control training was organized. 0.00 48.00 47.00 Female beneficiaries Comments on Based on the assessment and definition of direct project beneficiaries, specify what (Percentage) achieving targets percentage of the beneficiaries are female. 6.2 Intermediate Results Indicators by Components Component 1: PFOS Production Reduction Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Jan/2017 20.00 13-May-2024 20.00 13-May-2024 20.00 Jun/2024 Amount of PFOSF production capacity dismantled Comments on The indicator end-target is met. Amount was based on total EIA capacity of one PFOSF (Tones/year) achieving targets production enterprises to be dismantled, Yoshida. The dismantling at Yoshida has been completed, verified, and accepted. Component 2: Reduction of PFOS Use Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Number of contracts signed 0.00 Jan/2017 2.00 15-Dec-2023 2.00 Jun/2024 with enterprises for Comments on The indicator end-target is met with signature of two contracts for demonstration of "closed demonstration of PFOS achieving targets loop systems" (NEG, 1 Nov 2021; Baoxin, 11 Nov 2021). The demonstration at both phase-out in the metal enterprises were verified and accepted in September 2023. plating sector (Number) Jun 14, 2024 Page 5 of 11 The World Bank Implementation Status & Results Report Reduction and Phaseout of PFOS in Priority Sectors (P152959) Yearly reduction in water 0.00 Jan/2017 0.00 12-May-2024 0.00 12-May-2024 720,000.00 Jun/2024 effluents containing PFOS Comments on This indicator measures improvement of wastewater treatment operations in selected from demonstration achieving targets industrial parks. Sub-grant agreements were signed with Gaoping and Haofeng in March industrial parks 2023 and the target will be met once the implementation at these two industrial parks is (Tones/year) completed, verified and accepted by end of June 2024. 0.00 Jan/2017 4.00 15-Dec-2023 4.00 Jun/2024 Number of firefighting foam Comments on The indicator end-target is met. This indicator measures the progress towards uptake of non manufacturers developing achieving targets PFOS fire-fighting foam production. Target is met with signature of four planned sub- non-PFOS-based fire-fighting projects (Waysmo 6 Dec 2021; Langchao 13 Jan 2022; Nenglin, 25 Jan 2022; Suolong 26 Jan foam (Number) 2022). However it should be noted that the critical 5,000-m3 firefighting foam performance testing has been delayed and can only be completed in the next few months. 0.00 Jun/2021 0.00 12-May-2024 0.00 12-May-2024 100.00 Jun/2024 PFOS containing waste collected and disposed of Comments on This indicator measures the progress towards waste fire-fighting foam disposal. The (Metric ton) achieving targets agreement for implementing this activity in four provinces has been signed and disposal is expected to complete by June 2024. Component 3: Policy and Technical Assistance Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Jan/2017 10 12-May-2024 10 12-May-2024 9.00 Jun/2024 Comments on The indicator end-target is met. achieving targets Number of standards are developed as part of TA activities. Baseline is zero and target was increased from five to six during the June 2021 restructuring and to nine during March 2023 Number of PFOS related restructuring to reflect the added studies to be developed. environmental standards The following five standards were developed and adopted to date: developed (Number) - Standard for implementing professional control of Solenopsis Invicta Buren (NY/T 3541- 2020) issued on March 20, 2020 (developed under contract by NATESC). - Determination of perfluorooctane sulfonyl compounds (PFOS) in fire extinguishing agent (XF/T 3020- Jun 14, 2024 Page 6 of 11 The World Bank Implementation Status & Results Report Reduction and Phaseout of PFOS in Priority Sectors (P152959) 2023) issued on July 19, 2023 and become effective on Oct 19, 2023 (developed under contract by the China Certification Center for Fire Products, CCCF). - Assessment indicator system of cleaner production in fluoride chemical industry (T/FSI 101- 2023),issued on Feb 28, 2023 and became effective on Mar 30, 2023. - Pesticide application safety code for the prevention of Solenopsis Invicta Buren (T/CCPIA 212-2023) - Determination of perfluooctanesulfonic acid and the salts (PFOS) in chromium mist inhibitors liquid chromatography-triple quadrupole mass spectrometry (T/CSEA 28-2023) I In addition, five more standards are already developed. They are: a) Cleaner production assessment indicator developed for metal plating industry b) Technical guidelines for the disposal of PFOS-containing Waste c) Technical specification of wastewater and waste gas pollution treatment in Hubei fluorine chemical industry d) Electroplating discharge standard in Guangdong province e) PFOS discharge standard for the electroplating industry in Jiangsu Four of the standards will be adopted as industrial or association standards in the next few months. 0.00 Jan/2017 1,100.00 15-Dec-2023 1,064.00 Jun/2024 Comments on The indicator end-target is met. achieving targets Land area under demonstration for RIFA non- This indicator measures the area of land (in ha) where red imported fire ant non-PFOS PFOS alternative treatment alternative treatment has been piloted. Based on 10 total demonstration sites in 7 provinces (Hectare(Ha)) covering 32 ha each (500 mu) and repeated in new sites for four years. Baseline is zero. In 2021, ten demonstration sites were implemented in the seven participating provinces, adding 5000 mu to the area under demonstration (approx. 333 ha), bringing the total number of demonstration sites to 34ver the period 2018-2021, and completing demonstration activities Jun 14, 2024 Page 7 of 11 The World Bank Implementation Status & Results Report Reduction and Phaseout of PFOS in Priority Sectors (P152959) under this sub-component. (See September 2021 mission aide-memoire for further justification). 0.00 Jan/2017 63,056.00 12-May-2024 63,056.00 12-May-2024 19,500.00 Jun/2024 Number of technicians and Comments on The indicator end-target is met. farmers trained in achieving targets alternatives for RIFA control at the city/county levels (Number) Based on latest NATESC progress report. Component 4: Project Management Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Grievances recorded through Yes Jun/2021 Yes 15-Dec-2023 Yes Jun/2024 project level-grievance Comments on There have been no complaints received and reported to the Bank by FECO or the two redress mechanisms are achieving targets provincial PMOs to date. resolved satisfactorily (Yes/No) 6.3 Performance Based Conditions (PBC) Actual (Previous) Actual (Current) PBC Name Baseline Closing Period Value Date Value Date Value 0.00 0.00 11-May-2018 0.00 11-May-2018 Jun 14, 2024 Page 8 of 11 The World Bank Implementation Status & Results Report Reduction and Phaseout of PFOS in Priority Sectors (P152959) 1:Amount of PFOS produced and used Allocated 0.00 0.00 yearly reduced Amount (Tones/year) PBC allocation 0.00 2:Control and Value No No No monitoring system for tracking PFOSF production and sale Allocated 11-May-2018 11-May-2018 established and 0.00 0.00 Amount operational (Yes/No) PBC allocation 0.00 3:Direct project Value 0.00 0.00 0.00 beneficiaries Allocated 11-May-2018 11-May-2018 (Number) 0.00 0.00 Amount PBC allocation 0.00 3.1:Female Value 0.00 0.00 0.00 beneficiaries Allocated 11-May-2018 11-May-2018 (Percentage) 0.00 0.00 Amount PBC allocation 0.00 Jun 14, 2024 Page 9 of 11 The World Bank Implementation Status & Results Report Reduction and Phaseout of PFOS in Priority Sectors (P152959) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed TF-A4337 Effective 24.25 24.25 0.00 17.06 7.19 70.36% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing TF-A4337 Effective 04-Apr-2017 06-Jun-2017 04-Sept-2017 31-Mar-2023 30-Jun-2024 8. KEY DATES Jun 14, 2024 Page 10 of 11 The World Bank Implementation Status & Results Report Reduction and Phaseout of PFOS in Priority Sectors (P152959) Key Events Planned Actual Approval 07-Apr-2017 07-Apr-2017 Effectiveness 21-Sept-2015 21-Sept-2015 Mid-Term Review No. 01 31-Jan-2021 05-Feb-2021 Operation Closing/Cancellation 30-Jun-2024 9. RESTRUCTURING HISTORY Restructuring Level 2 Approved on 20-Jun-2021 Restructuring Level 2 Approved on 29-Mar-2023 10. ASSOCIATED OPERATION(S) There are no associated operations Jun 14, 2024 Page 11 of 11