1 st Asia-Pacific Regional Workshop for GEF IW Projects China: GEF Shanghai Agricultural & Non-point Pollution Reduction Project Gang Qin, Task Team Leader Water & Sanitation Specialist September 27, 2012, Bangkok, Thailand

The GEF Shanghai Agricultural Project 1

Project Development Objective (PDO) Demonstrate effective and innovative pollution reduction activities in Shanghai’s rural areas in order to reduce the rural and agricultural pollution load (especially nutrients) in the surface water flowing to the East China Sea. 2

GEF Shanghai Project: Composition 3 Livestock Waste ManagementWetland Demonstration Agricultural Pollution Reduction Dissemination

GEF Shanghai Project: Key Data GEF Grant: US$ 4.78 million Effectiveness: 10-Dec-2010 Closing: 30-Jun-2014 Eight (8) Project Implementation Units (PIUs) Expected Outcome: (1) Demonstration of pollution reduction technologies; (2) Reduction of pollutant loads from sub-projects; (3) Increased replication farm area using the demonstrated technologies; (4) Development of a replication strategy for disseminating demonstrated technologies. 4

GEF Shanghai Project: Highlights Promotion of organic fertilizer (with constant economic growth and rising food safety awareness); 5

GEF Shanghai Project: Highlights Animal waste disposal and bio-gas power generation for large and small scale cattle yards 6

GEF Shanghai Project: Highlights River-network wetland for non-point pollution reduction 7 tree vegetation shrub-grass grass water surface

GEF Shanghai Project: Highlights Constructed wetland (actually a trickling bio-filter) for rural domestic wastewater treatment 8 Wastewater From collection system Grill Collecting tank Compound filter Settling tank Water distribution well Horizontal subsurface flow to constructed wetland Discharge

GEF Shanghai Project: Issues The technical capability of some PIUs is extremely weak e.g., the quality of bidding documents is considerably below par so much hand-holding is needed; Land-use master plan changes resulted in relocation of one project site; The owners of the cattle farm are very hesitant to install bio-gas power generation facilities. Why did these things happen? 9

GEF Shanghai Project: Challenges The GEF grant is too small to attract high-quality design institutes (or consultants); The promotion of river-network wetland pollution reduction technology is largely constrained by rapid urbanization in China, especially in eastern China; Small-to-medium scale bio-gas power generation is difficult to promote in China as farmers lack sufficient technical competency to sustainably operate the facilities in the long run. It is also difficult to connect the facilities to the grid. 10

GEF Shanghai Project: Restructuring Through a restructuring, additional GEF grant proceeds will be re-allocated to the Project Management Component to strengthen the client’s technical capability; The outcome indicators will be carefully reviewed and revised in line with project changes; Bio-gas power generation will be dropped and replaced by bio-gas heating; All in all, these initiatives will keep the original project development objective achievable. 11

The Way Forward Detailed TORs for individual consultancies in different disciplines have been completed and hiring of consultants is on-going; With government’s coordination, a well qualified consultancy firm has agreed to review technical designs for the project; A M&E consultant will be hired soon to monitor progress on result indicators and environment compliance. 12

Lessons Learned: GEF IW Project 13 GEF & I.A. Non-private Sector Private Sector Government

Lessons Learned: Non-Private Sector Universities are most enthusiastic about being involved in the GEF Project; Government-backed research institutions are generally less enthusiastic; Government-affiliated institutions may wish to establish certain conditions if their involvement is requested; State-owned-enterprises are usually not willing to be involved; 14

Lessons Learned: Private Sector Private companies may get involved in the GEF Project as they are seeking investment. These are normally small to medium size companies; However, private companies are usually very reluctant to contribute to the project i.e., possibly refusing to prepare proper designs; If private companies are involved, it is strongly recommended that the design and bidding documents be properly prepared during project preparation; 15

Lessons Learned: Government Government’s commitment to the GEF Project should be firm enough to make sure that sufficient resources are available during implementation; However, as the GEF Projects is small-scale, it may not attract sufficient government attention; Keeping the GEF Project aligned with government’s policy and demonstrating its value to the government are key to project success. 16

Lessons Learned: GEF & Its Implementing Agency What should the GEF and its implementing agency do? 17

18 Thank You!