Appendix A4 Mid-term Evaluation Report (February 2003) Introduction

Changes since the Project Began

1. China

Conditions in China are dynamic, as the country is rapidly developing and changing. Currently China has a population of just under 1.3 billion people, with a slow rate of natural increase (slightly less than 0.7 percent per annum). While the intense poverty that once characterized China has largely been relieved in recent years, it has not been entirely eliminated. Economic growth is running at over 7 percent a year, but that growth is unevenly distributed: annual incomes and standards of living tend to be higher (and improving faster) in the east and in cities generally and lower in the west, central and rural areas. This is relevant because GEF project sites are all located in rural areas and one area (the Ruoergai Marshes project) is located in the Western Region. The GOC is working to alleviate structural problems related to the east-west divide, and it has introduced a new policy to develop the Western Regions. In particular, it is opening up the Ruoergai area through new construction (specifically, a new highway, rail line and gas pipeline). Improved access is likely to result in new migration into the area and increased pressure on wetland resources. It also could produce eco-tourism opportunities for local herders.

1. 
   Environment – The environment is becoming more and more a priority in China, where air and water pollution are regarded as serious threats both to health to healthy economic/industrial development. Reducing pollution levels is thus a national priority. Consequently, over the past five years the State Environmental Protection Agency (SEPA) has expanded, and SEPA is responsible – in addition to pollution control – for biodiversity preservation. In terms of significant new activities relating to the environment, the China National Wetlands Conservation Action Plan, which the SFA completed in 2002, is now available to provide guidance for this project. Moreover, the GOC is actively implementing new environmental initiatives in the Yangtze River basin. For over three years, the Worldwide Fund for Nature (WWF) has been working to deliver an integrated Yangtze River basin program in support of GOC policy. Two aspects of the WWF program are especially relevant to the Wetlands Project: first, WWF is doing an alternative livelihood program in West Dongting Lake; and, second, it recently won approval to set up an Integrated River Basin Management Task Force under the China Council for International Cooperation on Environment and Development (CCICED). The CCICED task force will provide a forum for integrating water management issues (including wetlands) into the national policy development process.
   

(b) Poverty alleviation – This continues to be a priority of the GOC, and it is now elaborating policies for the creation of a second tier of cities to divert rural in-migration from existing economic growth centers, such as Beijing and Shanghai.

2. Government reform – The GOC is pursuing an ambitious program of government reform, which includes streamlining and reducing the size of government. As a result, the administrative staff of SFA has shrunk since the project began. The government also introduced a related policy in 1998 to govern the management of donor projects. This policy, which applies to the CPMU, requires project offices to be managed by separate business units, like AFIP, outside the normal administrative workings of the bureaucracy.

2. Project

1. 
   Nature reserves – The number of nature reserves included in the project has increased from six to eleven, with new sites being added in Sanjiang Plains (1), Ruoergai (1), Yancheng Coast (1) and Dongting Lakes (2).
   

2. 
   Turnover of SFA staff – SFA staff from within SFA administration (eg staff from the Wetland Office) who were involved in development of the project left the project office shortly after implementation began. New staff, many without technical knowledge of wetlands or experience in managing donor projects, were assigned to the project. Also, the National Project Manager of the project was reassigned in late 2002; at the time of the MTR, the National Biodiversity Advisor was acting project manager.
   

3. 
   Executing Agency – Soon after project approval, CICETE took over implementation of the AusAID portion of the project (i.e., sub-contract 4). It is unclear whether CICETE was initially intended to act as an IA under SFA or as an EA: the original cost-sharing agreement arrived at between UNDP and the Government of Australia suggests the former. Whatever the original intention, CICETE is now acting as an Executing Agency.
   

4. 
   Project extension – The bidding and contracting process for all the sub-contracts took longer than anticipated, and consequently the project was extended a year.
   

5. 
   Implementation problems – Implementation of sub-contracts 2 and 4 has been suspended due to problems with the terms of reference (TORs). The MTR is being used to address those problems.
   

2. Donors

1. 
   UNDP mainstreaming – After pursuing a mainstreaming policy for several years, UNDP has recognized that more supervision is needed than it had originally planned. In China, time has now been allocated for UNDP staff to make two field visits a year. However, as some UNDP staff are responsible for up to 10 projects (only one or two of which will be visited), supervision is still an issue.
   

2. 
   Technical support – GEF/UNDP regional offices have recognized the need for technical involvement in project supervision and monitoring/evaluation and are changing the role of their professional staff accordingly.
   

3. 
   UNDP staff turnover – Changes in key staff will occur in 2003 (the resident representative, deputy resident representative and project manager), just as the project enters a critical phase of redesign and improved implementation.
   

4. 
   Service agreements – For new projects, GEF now enters into a service agreement with UNDP; however, this does not apply to historic projects, such as the Wetlands Project.
   

5. 
   AusAID priorities and policies – AusAID has changed its priorities for the China programme, de-emphasizing the environment, and the Wetlands Project no longer fits its priorities. Also, AusAID has new resettlement policies in place, and these must apply to any alternative livelihood activities it funds that involve resettlement. Finally, AusAID is troubled by that part of the project design that includes micro-credit: like many donors, it has learned that such schemes are problematic. On the other hand, it has had good success with small grants and supports them.
   

6. 
   UNOPS office – UNOPS opened an office in Beijing around the time that the project was approved and has managed the project from there. However, the UNOPS project officer recently left China, and the future of the Beijing office is uncertain: it may relocate to Kuala Lumpur.
   

2. 
   It takes time for donors to establish relationships, build connections and generate interest and support among the decision-makers in the recipient country; however, this process is essential to the effecting of change. Often the building of relationships can take considerable time. For example, during the sustainable livelihood project for West Dongting Lake, WWF found it took about three years to establish strong relations at all the decision-making levels involved.
   

3. 
   Innovative or experimental environmental projects in new fields (e.g., climate change, persistent organic pollutants [POPs], biodiversity) require more supervision and expert technical assistance than do conventional projects. Also, as the way to achieve the desired outcome is often initially uncharted, such projects demand flexibility. Approaches are needed that bring together ideas from developed and developing countries to produce practical solutions tailored to the particular context.