Report No: RES00431 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND/OR INTERNATIONAL DEVELOPMENT ASSOCIATION RESTRUCTURING PAPER ON A PROPOSED PROGRAM RESTRUCTURING OF Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) APPROVED ON 31-MAY-2023 TO People's Republic of China Global Department of Water East Asia And Pacific 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. The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) CURRENCY EQUIVALENTS Exchange Rate Effective March 31, 2023 Currency Unit = Chinese Yuan US$1= CNY6.87 EUR1= CNY7.49 US$ = EUR0.92 FISCAL YEAR January 1 - December 31 Regional Vice President: Manuela V. Ferro Country Director: Mara K. Warwick Regional Director: Anna Wellenstein Global Director: Saroj Kumar Jha Practice Manager: Maria Angelica Sotomayor Araujo Task Team Leader(s): Xiaokai Li, Guo Li, Si Gou The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) ABBREVIATIONS AND ACRONYMS IBRD International Bank for Reconstruction and Development CNY Chinese Yuan US$ United States Dollar EUR Euro PforR Program-for-Results Financing PDO Program Development Objective MoF Ministry of Finance DLI Disbursement Linked Indicator DLR Disbursement Linked Result AWD Alternate Wetting and Drying Ha Hectares The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) @#&OPS~Doctype~OPS^dynamics@pfrrestrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name Methane-Reducing and Water-Saving Paddy Rice Program P178796 for Results (Hunan) Product Operation Acronym Program-for-Results Financing (PforR) Methane-Reducing Water-Saving Paddy Rice Operation Status Approval Date Active 31-May-2023 Does this operation have an IPF component? No ACCOUNTABILITY Region/Country Who is the primary beneficiary of this operation? Beneficiary country/countries (borrower, recipient) Country or Group of Countries China Geographical Identifier China Requesting Unit EACMK (344) Will regional institutions act as the borrower/implementer? Implementing Unit Responsible Unit (e.g. EECG1) Practice Area (Lead) SEAW1 (9391) Water i The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) Contributing Practice Areas Agriculture and Food @#&OPS~Doctype~OPS^dynamics@pfrrestrhybridoperationstatus#doctemplate OPERATION STATUS Development Objective (DO) Development Objective To reduce methane emissions and support climate resilient rice production in China’s Hunan Province. Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Undisbursed % Disbursed IBRD 255.00 0.00 255.00 0.00 IDA -- -- -- 0 Grants -- -- -- 0 Policy Waivers Does this restructuring trigger the need for any policy waiver(s)? No @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate ii The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................2 III. PROPOSED CHANGES ................................................................................................................................................7 IV. DETAILED CHANGE(S) ...............................................................................................................................................7 ANNEX 1: RESULTS .........................................................................................................................................................9 ANNEX 2: PROGRAM ACTION PLAN ............................................................................................................................15 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This restructuring paper seeks the Country Director’s approval of the proposed cancellation of €142,660,784 (or USS$155 million equivalent) from the International Bank for Reconstruction and Development (IBRD) loan (Loan No. 9523-CN) and one-year extension of the loan closing date for the Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (The Program). This is the first restructuring of the Program, as requested by the Borrower through a letter from the Ministry of Finance (MOF) of the People’s Republic of China, dated November 28, 2024. The restructuring will enable the government to sign the revised loan agreement before the signing deadline. 2. The request from MoF proposes the following changes: (a) Revise the IBRD loan amount from €234,700,000 (or US$255,000,000 equivalent) to €92,039,216 (or US$100 million equivalent) by proportionally reducing the loan proceeds allocated to each of the disbursement-linked indicators (DLIs); (b) Extend the loan closing date by one year from the current date of December 31, 2028 to December 31, 2029; (c) Replace Jiahe with Yuanjiang as one of the six Demonstration Counties; and (d) Change the timing of Actions 2,3 and 4 in the Program Action Plan to reflect the delays in loan signing after the Board approval; and correct a typo related to Action 1 by removing the number 3. A. Program Status 3. Background. An IBRD loan in the total amount of €234,700,000 (or US$255 million equivalent) for the Program was approved on May 31, 2023, with a closing date of December 31, 2028. The Program Development Objective (PDO) is to strengthen methane reduction and climate resilient rice production in Hunan Province. The Program is expected to finance a provincial program-for-results to be implemented by Hunan Province. The Program has three results areas: (a) strengthening government management system for sustainable development impacts at scale; (b) reducing greenhouse gas emissions for low- methane development; and (c) improving irrigation and drainage services for climate resilient rice production. 4. Implementation Status. Following the approval of the Program by the World Bank, the Borrower has established the required management institutions, secured funding for the Program, and prepared the program implementation plan. The Program entities have started implementing some of the high-standard farmland construction activities such as land levelling, on-farm irrigation and drainage system improvement, strengthening of farmer water user associations and promotion of organic fertilizer uses. The PDO and Implementation Progress are rated Satisfactory. Through a letter dated November 12, 2024, MoF requested the extension of the signing deadline of the Loan Agreement, and the Bank has agreed to such extension and the loan signing deadline has been extended to February 28, 2025. The required government procedures for the loan signing are completed, and the Loan Agreement is expected to be signed within the month of December 2024. 5. Program Compliance (a) Environmental and Social. The environmental and social aspects of the Program are Satisfactory as the Program activities have not been implemented yet. (b) Fiduciary. Procurement is Satisfactory as no procurement has taken place under the Program. Similarly, financial management is rated Satisfactory because there have not been any financial transactions under the Program. Page 1 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) (c) Compliance with Legal Covenants. None of the legal covenants are due. There is no change to the agreed institutional arrangements for implementation of the Program. B. Rationale for Restructuring and Risk Assessment 6. A Level 2 restructuring is being proposed to reflect the changes associated with partial cancellation of the IBRD loan, and extension of the loan closing date to December 31, 2029. There will be no changes to the PDO, program design and results targets. 7. The reason for the partial loan cancellation is that, over the past year, the national government has increased the budgetary allocation and subsidies for the high-standard farmland construction program in Hunan Province from 1,600 CNY/Mu to 3,000 CNY/Mu, and this has resulted in the province having more resources under the government program to finance the same activities that we are targeting under the Program. The provincial authorities have committed, however, to maintain the same PDO and deliver the same results as originally agreed and approved by the Bank. The difference, in essence, is that they will use more government resources and less loan proceeds to achieve the same results. The reason for the one-year loan closing date extension is to make up for the year lost due to delays in the foreign capital utilization report approval which has now been obtained and ensure there is adequate time for Program implementation. 8. Risk Assessment. The latest ISR of November 2024 rated the overall risk of the Program as “Substantial”. The overall risk rating along with the individual risk ratings will remain unchanged because there have not been significant changes since the Board approval in the “Technical Design of Program”, “Institutional Capacity for Implementation and Sustainability”, and “Fiduciary” risks which were rated “Substantial” at appraisal. The proposed cancellation will have little impact on the program implementation and PDO achievement. The national and provincial government authorities are committed to accelerate the signing of the legal documents as soon as possible. The loan agreement is planned to be signed immediately after the restructuring as all required procedures are already in place, and no further delays are expected. II. DESCRIPTION OF PROPOSED CHANGES 9. Change to Loan Amount and Allocation of Loan Proceeds. At the request of the Borrower, the total amount of the loan will be reduced to €92,039,216 (or US$100 million equivalent), and the loan proceeds allocation to each of the Disbursement Linked Indicators (DLI), stipulated in Section IV. Withdrawal of Loan Proceeds of the Loan Agreement will be reduced proportionally as shown in Table 1 below. 10. The DLI matrix will be revised by adjusting the allocated amount to and unit price (allocation formula) for the disbursement linked results while keeping the total allocation percentage for each DLI unchanged. The changes are detailed in Table 2. Page 2 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) Table 1. Withdrawal of Loan Proceeds Category Disbursement Linked Result Original Amount of the Loan Revised Amount of the Loan (including Disbursement Linked (as applicable) Allocated Allocated Indicator as applicable) (in EUR) (in USD) (in EUR) (in USD) (1) DLI #1: Strengthening government DLR #1.1: Hunan Province has issued 27,611,800 30,000,000 10,823,812 11,760,000 management system for water- a provincial guiding document on saving and low-methane rice water use right trading production implementation DLR #1.2: Hunan Province has issued technical standards for water-saving and low-methane rice production DLR #1.3: Hunan Province has issued a provincial water-saving and low- methane rice production strategy and implementation plan DLR #1.4: Hunan Province has issued a provincial water-saving irrigation quota for rice production (2) DLI #2: Number of Demonstration DLR #2.1: All Demonstration 23,010,093 25,000,000 9,019,843 9,800,000 Counties establishing and Counties have established an maintaining an agriculture and water agriculture and water sector sector coordination mechanism for coordination mechanism for high- high-standard farmland construction standard farmland construction and and operation and maintenance operation and maintenance DLR #2.2: All Demonstration Counties have maintained their respective agriculture and water sector coordination mechanism for high-standard farmland construction and operation and maintenance on an annual basis (3) DLI #3: Number of farmers (of DLR #3: 69,093 farmers (of whom at 46,015,938 50,000,000 18,048,890 19,610,000 whom female) trained on the low- least 30% is female) have been methane rice cultivation technologies trained on the low-methane rice cultivation technologies in the Demonstration Counties Baseline: 0 Page 3 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) (4) DLI #4: Rice areas (number of ha) DLR #4: 117,198 ha of rice areas 57,527,810 62,500,000 22,558,812 24,510,000 where both AWD technology and where both AWD technology and deep returning of rice straw to soil deep returning of rice straw to soil are used have been used in the Demonstration Counties Baseline: 0 (5) DLI #5: Number of Demonstration DLR #5: All Demonstration Counties 34,514,724 37,500,000 13,538,969 14,710,000 Counties completing a have completed a comprehensive comprehensive agricultural water agricultural water pricing reform pricing reform (6) DLI #6: Rice production area DLR #6: 125,899 ha of rice 46,019,635 50,000,000 18,048,890 19,610,000 (number of ha) with sustainable production area with sustainable irrigation and drainage services irrigation and drainage services in the Demonstration Counties Baseline: 42,891 ha TOTAL AMOUNT 234,700,000 255,000,000 92,039,216 100,000,000 Page 4 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) Table 2. Disbursement Linked Indicator Matrix DLI Year Value Original Unit Price Original Allocation Revised Unit Price Revised Allocation in EUR in USD in EUR in USD in EUR in USD in EUR in USD DLI 1 2025 1 6,902,950 7,500,000 6,902,950 7,500,000 2,705,953 2,940,000 2,705,953 2,940,000 2026 1 6,902,950 7,500,000 6,902,950 7,500,000 2,705,953 2,940,000 2,705,953 2,940,000 2027 1 6,902,950 7,500,000 6,902,950 7,500,000 2,705,953 2,940,000 2,705,953 2,940,000 2028 1 6,902,950 7,500,000 6,902,950 7,500,000 2,705,953 2,940,000 2,705,953 2,940,000 Total 4 27,611,800 30,000,000 10,823,812 11,760,000 DLI 2 2025 0 2026 6 1,534,007 1,666,667 9,204,039 10,000,000 601,322.87 653,333.33 3,607,937 3,920,000 2027 6 767,003 833,333 4,602,018 5,000,000 300,661.43 326,666.67 1,803,969 1,960,000 2028 6 767,003 833,333 4,602,018 5,000,000 300,661.43 326,666.67 1,803,969 1,960,000 2029 6 767,003 833,333 4,602,018 5,000,000 300,661.43 326,666.67 1,803,969 1,960,000 Total 6 23,010,093 25,000,000 9,019,843 9,800,000 DLI 3 2025 14,687 666.00 723.67 9,781,542 10,628,427 261.23 283.82 3,836,627 4,168,470 2026 14,692 666.00 723.67 9,784,872 10,632,047 261.23 283.82 3,837,933 4,169,888 2027 13,238 666.00 723.67 8,816,508 9,579,842 261.23 283.82 3,458,110 3,757,214 2028 13,238 666.00 723.67 8,816,508 9,579,842 261.23 283.82 3,458,110 3,757,214 2029 13,238 666.00 723.67 8,816,508 9,579,842 261.23 283.82 3,458,110 3,757,214 Total 69,093 46,015,938 50,000,000 18,048,890 19,610,000 DLI 4 2025 24,382 490.86 533.3 11,968,148 13,002,568 192.50 209.13 4,693,160 5,099,085 2026 23,381 490.86 533.3 11,476,798 12,468,750 192.50 209.13 4,500,483 4,889,745 2027 23,375 490.86 533.3 11,473,853 12,465,550 192.50 209.13 4,499,328 4,888,490 2028 24,715 490.86 533.3 12,131,604 13,180,152 192.50 209.13 4,757,257 5,168,729 2029 21,345 490.86 533.3 10,477,407 11,382,980 192.50 209.13 4,108,584 4,463,949 Total 117,198 57,527,810 62,500,000 22,558,812 24,510,000 DLI 5 2025 0 2026 3 5,752,454 6,250,000 17,257,362 18,750,000 2,256,495 2,451,667 6,769,485 7,355,000 2027 3 5,752,454 6,250,000 17,257,362 18,750,000 2,256,495 2,451,667 6,769,485 7,355,000 Total 6 34,514,724 37,500,000 13,538,969 14,710,000 DLI 6 2025 30,997 554.4 602.35 17,184,726 18,671,092 217.44 236.24 6,739,850 7,322,802 2026 10,570 554.4 602.35 5,860,004 6,366,856 217.44 236.24 2,298,294 2,497,081 2027 12,857 554.4 602.35 7,127,918 7,744,436 217.44 236.24 2,795,569 3,037,367 2028 13,323 554.4 602.35 7,386,267 8,025,130 217.44 236.24 2,896,894 3,147,456 2029 15,261 554.4 602.35 8,460,692 9,192,486 217.44 236.24 3,318,284 3,605,294 Total 83,008 46,019,635 50,000,000 18,048,890 19,610,000 Grand Total 234,700,000 255,000,000 92,039,216 100,000,000 Page 5 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) 11. Change to Loan Closing Date and Implementation Schedule. The Closing Date in the Loan Agreement will be changed from December 31, 2028 to December 31, 2029. The revised implementation schedule will be from FY2025 to FY2030. 12. Other Changes. Other changes include the following: (a) Demonstration Counties. One of the six demonstration counties for the Program, Jiahe County under Chenzhou Municipality, will be replaced by Yuanjiang City under Yiyang Municipality. This has been discussed and agreed with the Bank. Supplemental technical, fiduciary and environmental and social system assessments and appraisal were conducted for Yuanjiang City in May 2024, which confirmed the assessment conclusions for the Program and that the Program design remain unchanged. (b) Program Action Plan (PAP). To reflect the delays in loan signing after the Board approval, the following changes will be made to the PAP: (i) changing the timing for Action 2 – Develop and issue a provincial measurement, reporting and verification (MRV) standard for carbon sequestration and greenhouse gas (GHG) emission reduction from rice production, from June 30, 2026 to December 31, 2027; (ii) changing the timing for Action 3 – Prepare detailed implementation plans for carbon trading pilots, from June 30, 2024 to December 31, 2025; (iii) changing the timing for Action 4 – Prepare detailed implementation plans for water right trading/buy-back pilots, from June 30, 2024 to December 31, 2025; and (iv) correcting a typo related to Action 1 – Develop a detailed trainer’s manual for training farmers on low-methane rice production, the number 3 will be removed. (c) Cost and Financing: While the total program costs remain the same at US$1,243 million, the financing arrangements will be changed. Originally US$988 million were from the Borrower and US$255 million from the IBRD loan, the revised financing arrangements will be US$ million were from the Borrower and US$100 million from the IBRD loan, as shown in Table 3 below. (d) Disbursement Estimates and Arrangements. To reflect the partial loan cancellation and loan closing date extension (see details in Datasheet); and (e) Disbursement and Financial Information Letter. The advance amount will be changed from €58,675,000 to €23,009,800, as a result of the partial loan cancellation. Table 3. Cost and Financing Summary Table Cost/Financing Summary Original Amount Revised Amount (USD Million) (USD Million) Government program Cost 1,243.00 1,243.00 Total Operational Cost 1,243.00 1,243.00 Total Program Cost 1,243.00 1,243.00 Total Financing 1,243.00 1,243.00 Financing Gap 0.00 0.00 Financing (USD Million) Counterpart Funding 988.00 1,143.00 Borrower 988.00 1,143.00 IBRD 255.00 100.00 Page 6 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) 13. Program-for-Results Assessments. The Environmental and Social System Assessment (ESSA) for the Program had been completed and disclosed on May 10, 2023; the updated ESSA was disclosed on September 24, 2024. Technical Assessment and Fiduciary Assessment had also completed. @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Disbursements Estimates Yes Loan Closing Date Extension Yes Disbursements Arrangements Yes Reallocations Yes Program Action Plan Yes Implementation Schedule Yes Development Objective No Loan Cancellations No MFD/PCE No Financial Management No Results No Procurement No Risks No Institutional Arrangement No Legal Operational Policies No Legal Covenants No Conditions No Implementation Modalities No Clients No Program Scope No @#&OPS~Doctype~OPS^dynamics@pfrrestrhybriddetailedchanges-disclose#doctemplate IV. DETAILED CHANGE(S) COSTS & FINANCING Is this an MFD-Enabling Project (MFD-EP)? Is this project Private Capital Enabling (PCE)? LOANS Page 7 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) Loan Closing Original Revised Proposed Proposed Deadline Loan/Credit/Trust Status Closing Closing(s) Closing for Withdrawal Fund Applications Not IBRD-95230-001 31-Dec-2028 31-Dec-2028 31-Dec-2029 30-Jun-2030 Effective Reallocation Between Disbursement Categories DISBURSEMENTS Operation Dates & Projection Details Reasons to change the full Disbursement date and/or the projection Restructuring Implementation Start Date Operation Closing Date 31-May-2023 31-Dec-2028 Projected Date for Full Disbursement 30-Jun-2030 Expected Disbursements (in US $) (Absolute) Original Estimation at Preparation Actual Year Revised Estimation (Approval Package – 31 May 2023) FY2023 0.00 0.00 0.00 FY2024 16,587,500.00 0.00 0.00 FY2025 33,565,500.00 10,000,000.00 0.00 FY2026 52,253,000.00 20,000,000.00 0.00 FY2027 59,018,750.00 20,000,000.00 0.00 FY2028 53,429,750.00 20,000,000.00 0.00 FY2029 40,145,500.00 20,000,000.00 0.00 FY2030 0.00 10,000,000.00 0.00 LEGAL Environmental Assessment (EA) Category Page 8 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) Change in EA Category? No Page 9 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) ANNEX 1: RESULTS COUNTRY: China Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) @#&OPS~Doctype~OPS^dynamics@pfrrestrannexpolicyandresult#doctemplate PDO Indicators by PDO Outcomes Strengthened government management system for sustainable development impacts Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year The related strategy, Apr/2023 The TORs for 22-Nov-2024 The TORs for 22-Nov-2024 Four key standards Dec/2029 standards and developing the developing the and guiding Revise Strengthening government guiding documents strategy, standards strategy, standards documents management system for water-saving need to be and guiding and guiding developed and and low-methane rice production developed or documents have documents have issued for water- (Text) DLI revised been drafted for been drafted for saving and low- review. review. methane rice production Reduced GHG emissions in demonstration counties Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise Net GHG emission reduction in 0.00 Apr/2023 0.00 22-Nov-2024 0.00 22-Nov-2024 2,396,957.00 Dec/2029 demonstration counties (Ton CO2 equivalent) (Metric ton) Improved irrigation and drainage services for resilient rice production Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise Beneficiaries reached with 0.00 Apr/2023 0.00 22-Nov-2024 0.00 22-Nov-2024 647,500.00 Dec/2029 improved irrigation and drainage services in demonstration counties (of whom women) (Number) Page 10 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) Revise Female farmers reached 0.00 0.00 0.00 316,600.00 with improved irrigation and drainage services in demonstration counties (Number) Intermediate Results Indicators by Results Areas Results Area 1: Strengthening management system for sustainable development impacts Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year No provincial Apr/2023 The TORs for 22-Nov-2024 The TORs for 22-Nov-2024 The strategy and Dec/2029 Revise Development/issuance of a strategy and developing the developing the implementation provincial water-saving and low- implementation provincial strategy provincial strategy plan issued methane rice production strategy and plan and implementation and implementation implementation plan (Text) plan have been plan have been drafted. drafted. Revise No integrated Apr/2023 The TORs for 22-Nov-2024 The TORs for 22-Nov-2024 The integrated Dec/2029 Development/issuance of technical standard developing the developing the standards approved (provincial) technical standards for technical standards technical standards and issued water-saving and low-methane rice have been drafted have been drafted production (Text) for review for review No irrigation quota Apr/2023 The TORs for 22-Nov-2024 The TORs for 22-Nov-2024 The water-saving Dec/2029 for water-saving rice developing the developing the irrigation quota for Revise production provincial water- provincial water- rice production Development/issuance of saving irrigation saving irrigation approved and issued provincial water-saving irrigation quota for rice quota for rice quota for rice production (Text) production have production have been prepared for been prepared for review. review. Page 11 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) Revise Draft guiding Apr/2023 The draft guiding 22-Nov-2024 The draft guiding 22-Nov-2024 Guiding document Dec/2029 Issuance of a provincial guiding document under document is under document is under approved and issued document on water use right trading preparation review for review for (Text) finalization. finalization. Revise Demonstration counties No formal Apr/2023 Preparatory work is 22-Nov-2024 Preparatory work is 22-Nov-2024 Annual Dec/2029 establishing and maintaining an coordination under way for under way for implementation of agriculture and water sector mechanism establishment of the establishment of the coordination coordination mechanism for high- coordination coordination mechanisms in six standard farmland construction and mechanism. mechanism. demonstration O&M (Text) DLI counties Results Area 2: Reducing GHG emissions for low-methane development Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise Increase in new/upgraded high- 0.00 Apr/2023 0.00 22-Nov-2024 0.00 22-Nov-2024 51,183.00 Dec/2029 standards farmland area in demonstration counties (Hectare(Ha)) Revise Farmers trained on the low- 0.00 Apr/2023 0.00 22-Nov-2024 0.00 22-Nov-2024 13,238.00 Jun/2029 methane rice cropping package solution/technologies (of whom women) (Number) Revise Rice areas where both AWD 0.00 Apr/2023 0.00 22-Nov-2024 0.00 22-Nov-2024 117,198.00 Jun/2029 technology and deep returning of rice straw are used (Hectare(Ha)) DLI Revise Increase in rice field area 12,030.00 Apr/2023 12,030.00 22-Nov-2024 12,030.00 22-Nov-2024 59,030.00 Jun/2029 applying organic fertilizer (Tones/year) Revise Counties which pilot carbon 0.00 Apr/2023 0.00 03-Jun-2024 0.00 03-Jun-2024 3.00 Dec/2029 trading (Number) Results Area 3: Improving irrigation and drainage services for resilient rice production Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Page 12 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) Revise Demonstration counties 0.00 Jun/2023 0.00 22-Nov-2024 0.00 22-Nov-2024 6.00 Dec/2029 completing a comprehensive agricultural water pricing reform (Number) DLI Revise Rice production area with 42,891.00 Apr/2023 42,891.00 22-Nov-2024 42,891.00 22-Nov-2024 125,899.00 Dec/2029 sustainable irrigation and drainage services (Hectare(Ha)) DLI Qiyang 20%, Jiahe Apr/2023 Qiyang 20%, Jiahe 22-Nov-2024 Qiyang 20%, Jiahe 22-Nov-2024 Qiyang 51%, Jiahe Dec/2029 Revise Percentage of irrigated areas 20%, Lukou 20%, 20%, Lukou 20%, 20%, Lukou 20%, 60%, Lukou 55%, managed by farmer cooperative Louxing 20%, Louxing 20%, Louxing 20%, Louxing 55%, organizations (%) (Text) Hanshou 65%, Hanshou 65%, Hanshou 65%, Hanshou 90%, Dingcheng 0%; Dingcheng 0%; Dingcheng 0%; Dingcheng 50%; Qiyang 20%, Jiahe Qiyang 20%, Jiahe Qiyang 20%, Jiahe Qiyang 50%, Jiahe Revise of which with women on 5%, Lukou 30%, 5%, Lukou 30%, 5%, Lukou 30%, 20%, Lukou 40%, Louxing 30%, Louxing 30%, Louxing 30%, Louxing 50%, management team, % (Text) Hanshou 5%, Hanshou 5%, Hanshou 5%, Hanshou 30%, Dingcheng 0% Dingcheng 0% Dingcheng 0% Dingcheng 60% Revise Counties that pilot water rights 0.00 Apr/2023 0.00 22-Nov-2024 0.00 22-Nov-2024 3.00 Dec/2029 trading or buy-back (Number) Disbursement Linked Indicators (DLI) Actual (Previous) Actual (Current) DLI Name Baseline End Target Result Date Result Date Revise 1 Strengthening The related strategy, The related guiding standards and guiding The related guiding government management documents, All documents developed Value documents need to documents, strategy system for water-saving strategy and and issued. be developed or and technical and low-methane rice technical standards 22-Nov-2024 22-Nov-2024 revised standards have yet to production (Text) have yet to be be developed or Total Allocated developed or 0.00 revised, and issued. 0.00 Allocation:11,760,000.00 Amount revised, and issued. Page 13 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) Revise2 Demonstration Six demonstration No formal counties establishing and counties have maintained Value coordination maintaining an agriculture the coordination mechanism and water sector mechanism No county has No county has official coordination mechanism official coordination 22-Nov-2024 coordination 22-Nov-2024 for high-standard mechanisms mechanisms farmland construction Allocated and O&M (Text) 0.00 1,960,000.00 Amount Total Allocation:9,800,000.00 Revise3 Farmers trained on Value 0.00 13,238.00 the low-methane rice cropping package solution/technologies (of 0.00 22-Nov-2024 0.00 22-Nov-2024 whom women) (Number) Allocated 0.00 3,757,480.00 (Number) Amount Total Allocation:19,610,000.00 Revise4 Rice areas where Value 0.00 117,198.00 both AWD technology and deep returning of rice straw are used 0.00 22-Nov-2024 0.00 22-Nov-2024 Allocated (Hectare(Ha)) 0.00 4,463,961.00 Amount Total Allocation:24,510,000.00 Revise 5 Demonstration Value 0.00 6.00 counties completing a comprehensive agricultural water pricing 0.00 22-Nov-2024 0.00 22-Nov-2024 Allocated reform (Number) 0.00 0.00 Amount Total Allocation:14,710,000.00 Page 14 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) Revise6 Rice production Value 42,891.00 125,899.00 area with sustainable irrigation and drainage Allocated 42,891.00 22-Nov-2024 42,891.00 22-Nov-2024 services (Hectare(Ha)) 0.00 3,556,510.00 Total Amount Allocation:19,610,000.00 Page 15 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) ANNEX 2: PROGRAM ACTION PLAN . @#&OPS~Doctype~OPS^dynamics@pfrrestrannexprogramactionplan#doctemplate PROGRAM ACTION PLAN PAP_CHANGE_TBL Completion Action Description Source DLI# Responsibility Timing Measurement Action Develop a detailed Technical NA DARA and PPMO Other A copy of the training trainer’s manual for manual submitted to the By loan training farmers on World Bank as part of the No change effectiveness low-methane rice PIP production Develop and issue a Technical NA PPMO and PDEE Other An MRV standard issued provincial MRV by the responsible standard for carbon provincial authority. It sequestration and December 31, will be developed in Revised GHG emission 2027 coordination with the reduction from rice related activities under production the GARR (Hubei and Hunan) Program Prepare detailed Technical NA CPMOs concerned Due Date A copy of the detailed implementation plans and PPMO implementation plans for for carbon trading 30-Dec-2025 carbon trading pilots No change pilots submitted to the World Bank Page 16 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) Prepare detailed Technical NA CPMOs concerned Due Date A copy of the detailed implementation plans and PPMO implementation plans for for water right 31-Dec-2025 water right trading/buy- No change trading/buy-back back pilots submitted to pilots the World Bank Issue an official Fiduciary NA PDRC and PPMO Other A copy of the high- letter/instruction to Systems level official letter or implementation instruction submitted agencies to ensure no to the World Bank By loan contract will be No change effectiveness awarded to debarred or temporarily suspended firms or individuals Include in the TOR for Fiduciary NA PPMO Other A copy of the TOR for annual external audit Systems the annual external the task of randomly audit submitted to the selecting awarded World Bank as part of contracts to check the PIP. whether they have By loan No change been awarded to effectiveness firms or individuals debarred or temporarily suspended by the World Bank, and Page 17 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) ensure Program funds shall be audit Use the Fiduciary NA PPMO and Other Semiannual progress comprehensive Systems CPMOs reports submitted to evaluation method the World Bank, for consulting including records on services, subject to the evaluation the weighting of Throughout methods. financial proposal Program No change equal to or greater implementation than 70% of the total stage weighting, while “the lowest evaluated responsive bid” is encouraged as an alternative option Integrate the Fiduciary NA DARA and PPMO Other Semi-annual progress information on HSFCP Systems reports submitted to funds into the MIS so Throughout the World Bank, that all budgetary Program including evidence No change funds administered implementation showing that by DARA could be stage information on the managed efficiently HSFCP funds is integrated in the MIS Regularly inform the Fiduciary NA PPMO and Other Semi-annual progress Throughout No change World Bank of any Systems CPMOs reports containing Program credible and material information on Page 18 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) allegations of fraud implementation credible and material and corruption in the stage allegations of fraud Program progress and corruption, if any, reports. submitted to the World Bank. Integrate the existing Environmental NA PPMO, Hanshou Recurrent Reports of hygienic mechanism of and Social County, assessment on prevention and Systems Dingcheng District schistosomiasis control of transmission risk schistosomiasis into prepared; Assessment the Program activities Reports on snail spread to safeguard health risk prepared; Records Continuous No change and safety of of actions timely construction workers taken; The & farming operators implementation of the related to water in above actions are the endemic area of reflected in Hanshou and semiannual progress Dingcheng. reports Include a specific Environmental NA PPMO and Other The design documents subsection on and Social CPMOs for the Program environmental and Systems Throughout activities available for social management in Program World Bank the preliminary No change implementation inspections, include: design documents for stage screening and the Program activities assessment of E&S risks and mitigation measures in bidding Page 19 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) documents; and public consultation documented by township and village committees. For the Environmental NA PPMO and Other A copy of the TA ToRs documentations of and Social CPMOs submitted to the non-physical activities Systems World Bank, including with possible Prior to requirements on downstream adverse carrying out screening and impacts (e.g., relevant non- assessment of agricultural water physical activity downstream E&S risks; No change pricing reform, etc.), throughout records of farmers and set out in the relevant Program stakeholders TORs requirements implementation engagement; and on screening and stage appropriate mitigation assessment of measures and downstream E&S risks assistance to and impacts vulnerable groups. For water rights Environmental NA PPMO and Other Documentation trading, conduct and Social CPMOs of pilot available for World survey on farmers’ Systems counties Throughout the Bank inspection: affordability and water right Records on farmers’ willingness to pay for affordability and No change trading pilot water use before and period willingness to pay; during the plan Evidence material of implementation, public engagement on extensive publicity water right trading; Page 20 The World Bank Methane-Reducing and Water-Saving Paddy Rice Program for Results (Hunan) (P178796) and public Record of WUA public engagement by hearings; Above means of public actions reflected in hearings, mobilizing semiannual progress farmers, and WUAs Proposed Action Description Source DLI# Responsibility Timing Completion Measurement Develop and issue a Technical NA PPMO and PDEE Other December 31, An MRV standard issued by the provincial MRV 2027 responsible provincial standard for carbon authority. It will be developed sequestration and GHG in coordination with the emission reduction related activities under the from rice production GARR (Hubei and Hunan) Program . . Page 21