Question

Brief Background on purpose of project, project composition and investment, important dates, ratings summary, key stakeholders, etc.

Answer

Background of Tai Basin Urban Environment Project

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Institution:

Contents

Introduction. 2

Background. 2

Reasons Behind the project. 2

Objectives of the Project. 3

Project Implementation. 3

Key Dates. 4

Project Financing. 4

Ratings and Reviews. 5

Notable Benefits from the project. 6

References. 7

Background of Tai Basin Urban Environment Project

Introduction

The Tai Basin in China is one of the most vital water resources that has proven useful to the majority of the inhabitants living in the vicinity as well as those in the suburban settlements. A brief detailed look into the background of the project, its composition and investment, reasons behind its establishment, major objectives, and the ratings and reviews on its implementation, all explained in this paper, will show that indeed the project was nothing but a massive success.

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Background

To begin with, Lake Tai Basin forms a crucial part of the Yangtze River Delta. The region is regarded as the heart of the industrial sector as it is a densely populated economic region. It has exhibited a rapid increase in the GDP, and it constitutes a large part of the country’s national income owing to the heavy foreign investment being channeled into the region. Being an important water reservoir, the Basin is fed by a dense structure of pre-existing rivers and canals. Therefore, it is able to provide adequate and continuous water supply to local residents and those in the neighboring urban centers specifically Wuxi and Suzhou.

Reasons Behind the project

There were myriad reasons behind the establishment of the above project. Firstly, the inability to collect and treat waste water from industries led to the contamination of the water source. This greatly led to water scarcity in major areas in China. Secondly, the uninterrupted flow of the untreated domestic, industrial, and agricultural wastes alike into the Basin’s major rivers and lakes continually jeopardized the water reservoir as a result of the booming urbanization. Lastly, the conditions deteriorated to an extent that proved harmful to the health of the beneficiaries of the water including local residents (Tang, 2006).

Objectives of the Project

In light of these discoveries by the State Council, the need to address the issue of pollution and environmental degradation arose, leading to the launch of the Lake Tai Basin Water Resource Projection Leading Group in 1996. The group was tasked with the responsibility of safeguarding the health and overall welfare of the affected citizens. The prevailing situation of the water shortage necessitated the need to come up with objectives that would resolve the issue before it spiraled out of control. The project’s main objective was to improve the quality of life to a great extent of the fast –growing populace and stimulate economic activities that would maintain the economy in Wuxi and Suzhou. In addition to that, controlling pollution of the water resources was deemed necessary in order to achieve the desired goal of curbing pollution by the year 2010.

Project Implementation

The first part of the project was a five-year plan that was to run from 1996-2000 (The World Bank, 2011). However, there were quite a number of setbacks that slowed down the project.  For instance, there were inadequate funds for investment in the wastewater sector that led to the disruption of development activities. Furthermore, the environmental policies were poorly enforced at the onset of the project. There was also slow progress in the collection and treatment of the decomposing sewage and this impacted negatively on the overall project. Towards the end of the five-year plan in 2000, the government decided to prioritize Tai Basin, and further sought to improve the quality of water being provided by going back to the lake and river networks. The government modified and launched another five-year plan that was to run from 2001 to 2005. Key priorities in this plan included the improvement of wastewater management by concentrating on the effective collection and treatment of domestic waste in addition to improving water quality by controlling phosphorus discharge in the water reservoirs. The plan also incorporated close monitoring and management of the water resources. Consequently, more piping plans were effected to control the discharge by the Tai Basin Authority.

Key Dates

There were a number of dates that were crucial in determining the success of the project at hand. The reviewing of the proposed concept was done on May 14, 2003 followed closely by the appraisal of the project by the stakeholders on November 10, 2003 (Tai Basin Project Management Office, 2004). The project was approved for commencement on August 3, 2004, and was subjected for mid-term review on September 3, 2007 (Tai Basin Project Management Office, 2004). Finally, the project officially terminated on June 30, 2010 following its completion (Tai Basin Project Management Office, 2004).

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Project Financing

Finances for the 5-year project were advanced by The World Bank. (The World Bank, 2004).A loan of $61.3 million was advanced to China to boost the Tai Basin project. The terms of the loan were Variable-Spread Loan (VSL) which allowed for the accrued funds to be spread out accordingly throughout the project implementation period, running from 2004-2009.  From the advanced loan, $28.44 and $22.50 million was directed to wastewater treatment plants in Wuxi and Suzhou respectively, $4.88 million was used in polluted water control schemes and finally, $1.75million went to technical assistance and building (The World Bank, 2004). The financer not only provided the required monetary funds in form of loans but were also charged with the role of ensuring that the investment was effective and yielded positive outcomes. Moreover, the bank also outlined practical prospects with the aim of improving the management strategies for the districts’ wastewater framework. They were also expected to come up with cost-effective mechanisms to enhance financial sustainability in the water systems and eliminate the risk of potential insolvency during the term of the development plan.

Ratings and Reviews

The various key contributors in the project including borrowers, expected outcomes, associated risks as well as the bank performances were all subjected to ratings and reviews during the mid-term review stage of the project. Among these entities, the outcomes and bank performances were rated moderately satisfactory as opposed to the borrower, constituting of the government and agencies, which was accorded a satisfactory performance. The risks tied to the development project were insignificant hence the rating was low and this showed that the project was a viable one. However, it was noted that the banks involvement in the plan got a rating that was not anticipated by key stakeholders including national and international consultants as well as the representatives from the provincial and municipal governments. A detailed report outlined that the initial design presented by the bank had irregularities. The main one portrayed the bank as weak in terms of conducting the background analysis and risk assessment of the proposed plan. In addition to that, the first stage of identifying and preparing the project took more than three years contrary to what the bank had projected earlier on.

Notable Benefits from the project

Regardless of the mishaps encountered, the completion of the project brought along numerous benefits to the country at large. For instance, employment opportunities were created especially in the industries that sprouted up in the region. The tourism industry also benefited especially in Suzhou district where the newly established lake basin formed a major tourist attraction. In addition to that, the plan aided in providing a central wastewater treatment plant that minimized operating costs for smaller industries. Thus, the project as a whole has proven to be quite beneficial to the Chinese economy. It continues to boost the industrial sector up to date, consequently providing uninterrupted clean and quality water to the civilians residing in the regions. Thus, the project’s key objectives were adequately and effectively met, making it one of China’s greatest success stories.

References

Tai Basin Project Management Office (2004). China-Tai basin urban environment project. Web.

The World Bank. (2004). Project appraisal document on a proposed loan in the amount of US $61.3 million to the People’s Republic of China for Tai Basin Urban Environment Project. Washington, DC: The World Bank.

The World Bank. (2011). Implementation completion and results report (IBRD-47480) on a loan in the amount of US $61.0 million to the People’s Republic of China for a Tai Basin urban environment project. Washington, DC: The World Bank.