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Appendix IProject ExamplesAppendix I1: Water Efficiency in ChinaThe Irrigated Agriculture Intensification Loan III (IAIL 3) approved in 2005 wasdesigned <strong>to</strong> increase agricultural productivity and water efficiency in <strong>the</strong> Huang-Huai-Hai river basin in nor<strong>the</strong>rn China. The project financed water-saving irrigationand drainage, agricultural institutional development and agro-ecological protection,and aimed <strong>to</strong> demonstrate <strong>the</strong>se techniques as a model <strong>to</strong> be scaled up by Chineseagricultural agencies.The project had not specifically considered climate change during preparation, butshortly after implementation <strong>the</strong> <strong>Bank</strong> successfully encouraged <strong>the</strong> addition of aclimate change add-on. A set of climate change impact analysis studies wereundertaken by international and domestic climate experts during preparation of <strong>the</strong>add-on, and <strong>the</strong> GEF-financed project on Mainstreaming <strong>Climate</strong> <strong>Change</strong>Adaptation in Irrigated Agriculture was approved in 2008. A consultative gapanalysis undertaken as part of preparation of <strong>the</strong> adaptation project led <strong>to</strong> a newfocus on demand-side water efficiency measures.The project supported hydrological modeling of <strong>the</strong> basin under future climatescenarios. The studies improved understanding of <strong>the</strong> hydrological functioning of<strong>the</strong> basin and its response <strong>to</strong> different possible future conditions. Liu and o<strong>the</strong>rs(2010), for instance, found that, in <strong>the</strong> absence of CO2 fertilization, both irrigatedand rainfed maize and wheat yields would decline modestly for a +2°C increase andseverely for a +5° increase, with some moderation or exacerbation depending onprecipitation trends. The climate change studies recommended a set of actions thatwere largely no-regrets measures that reduced vulnerability <strong>to</strong> current climatevariability. The <strong>Bank</strong> claimed that <strong>the</strong> incorporation of demand-side water efficiencymeasures was motivated by <strong>the</strong> climate change technical studies—but <strong>the</strong> ChinaWater Conservation project approved in 2000 had already undertaken similarmeasures.Activities supported by <strong>the</strong> projects appear <strong>to</strong> have been highly successful; IAIL IIIreported a 27 percent increase in grain yields, a 75 percent increase in cash cropyields, and a 55 percent decrease in water use. The projects appear <strong>to</strong> have beensuccessful in building institutional capacity in China, and in creating mobile expertteams that supported collaboration between national scientists, local experts, andextension agents. Water savings from improved infrastructure under IAIL 3 were128

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