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World Bank Document Document of The World Bank Public Disclosure Authorized FOR OFFICIAL USE ONLY Report No: 3 1449-CHA PROJECT APPRAISAL DOCUMENT Public Disclosure Authorized ON A PROPOSED LOAN IN THE AMOUNT OF US$100 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A Public Disclosure Authorized FUZHOU NANTAI ISLAND PERI-URBAN DEVELOPMENT PROJECT November 18,2005 Transport Sector Unit East Asia and Pacific Region This document has a restricted distribution and may be used by recipients only in the Public Disclosure Authorized performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective March2005) Currency Unit = Yuan Y 8.3 US$ 1 US$O.l2 Y 1.00 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS 3RR Third Ring Road South, Phase I1 ICB International Competitive Bidding ADB Asian Development Bank IDA International Development Association CQS Consultants’ Qualifications km Kilometer EIA Environmental Impact Assessment LIBOR London Interbank Offered Rate EIRR Economic internal rate ofreturn m Meter EMP Environment Management Plan MBD Model Bidding Documents FFB Fuzhou Finance Bureau MIS Management Information System FBS Fixed-Budget Selection MOF Ministry of Finance FDRC Fuzhou Development and Reform mu A traditional unit of land area in China Commission approximately equal to 1/15 hectare or 667 square meters FEB Fuzhou Environmental Bureau NCB National Competitive Bidding FFB Fuzhou Finance Bureau NJBL Nan Jiang Bin Lu FMG Fuzhou Municipal Government NO2 Nitrogen dioxide FNUDP Fuzhou Nantai Peri-Urban NPV Net present value Development Project FPFB Fujian Provincial Finance Bureau NS National Shopping FPTC Fuzhou Group Public Transport PMO Project Management Office Company FSL Fixed-spread loan PTS Passenger time savings FUCDC Fuzhou Urban Construction QCBS Quality- and Cost-Based Selection Development Company FWPMO Fuzhou World Bank Project RAP Resettlement Action Plan Management Office GDP Gross domestic product SEPA State Environmental Protection Administration GIS Geographic Information System SOE Statement ofExpenditures GPS Global Positioning System sq km Square kilometer GREO Guangzhou Road Extension Office sq m Square meter ha Hectare TA Technical Assistance IBRD International Bank for voc Vehicle operating cost Reconstruction and Development IC Individual Consultant VSL Variable -spread loan Vice President: Jemal-ud-din Kassum, EAPVP Country ManagedDirector: David Dollar, EACCF Sector Manager: Jitendra N. Bajpai, EASTR Task Team Leader: Shomik Raj Mehndiratta, EASTR CHINA Fuzhou Nantai Island Peri-Urban Development Project CONTENTS Page A. STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 1. Country and Sector Issues................................................................................................... 1 2 . Rationale for Bank Involvement ......................................................................................... 2 3 . Higher-Level Objectives to Which the Project Contributes ............................................... 3 B . PROJECT DESCRIPTION ................................................................................................. 3 1. Lending Instrument ............................................................................................................. 3 2 . Program Objective and Phases ............................................................................................ 3 3 . Project Developmnt Objective and Key Indicators........................................................... 3 4 . Project Components ............................................................................................................ 4 5 . Lessons Learned and Reflected in the Project Design........................................................ 4 6 . Alternatives Considered and Reasons for Rejection........................................................... 6 C. IMPLEMENTATION .......................................................................................................... 6 1. Partnership Arrangements ................................................................................................... 6 2 . Institutional and Implementation Arrangements ................................................................ 6 3 . Monitoring and Evaluation of Outcomes/Results ............................................................... 8 4 . Sustainability and Replicability .......................................................................................... 8 5 . Critical Risks and Possible Controversial Aspects ............................................................. 8 6 . Loan Conditions and Covenants ......................................................................................... 9 D . APPRAISAL SUMMARY ................................................................................................. 10 1. Economic and Financial Analyses .................................................................................... 10 2 . Technical ........................................................................................................................... 11 3 . Fiduciary ........................................................................................................................... 12 4 . Social................................................................................................................................. 13 5 . Environment ...................................................................................................................... 13 6 . Safeguard Policies............................................................................................................. 14 7 . Policy Exceptions and Readiness ...................................................................................... 15 ANNEX 1: COUNTRY AND SECTOR OR PROGRAM BACKGROUND ........................ 16 ANNEX 2: MAJOR RELATED PROJECTS FINANCED BY THE WORLD BANK AND/OR OTHER AGENCIES ................................................................................................. 25 ANNEX 3: RESULTS FRAMEWORK AND MONITORING.............................................. 26 ANNEX 4: DETAILED PROJECT DESCRIPTION .............................................................. 30 ANNEX 5: PROJECT COSTS .................................................................................................. 35 ANNEX 6: IMPLEMENTATION ARRANGEMENTS ......................................................... 37 ANNEX 7: FINANCIAL MANAGEMENT AND DISBURSEMENT ARRANGEMENTS 39 ANNEX 8: PROCUREMENT ARRANGEMENTS ................................................................ 44 ANNEX 9: ECONOMIC AND FINANCIAL ANALYSIS ...................................................... 50 ANNEX 10: SAFEGUARD POLICY ISSUES ......................................................................... 60 ANNEX 11: PROJECT PREPARATION AND SUPERVISION .......................................... 73 ANNEX 12: DOCUMENTS IN THE PROJECT FILE .......................................................... 75 ANNEX 13: STATEMENT OF LOANS AND CREDITS ...................................................... 77 ANNEX 14: COUNTRY AT A GLANCE ................................................................................ 82 MAP IBRD 33943: China: Fuzhou Nantai Island Peri-Urban Development Project CHINA FUZHOU NANTAI ISLAND PERI-URBAN DEVELOPMENT PROJECT PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC EASTR Date: November 16,2005 Team Leader: Shomik Raj Mehndiratta Country Director: David R. Dollar Sectors: General transportation sector (100%) Sector ManagedDirector: Jitendra N. Bajpai Themes: Other urban development (P) Project ID: PO705 19 Environmental screening category: Full Assessment Lending Instrument: Specific Investment Loan Safeguard screening category: Limited impact [XI Loan [ ] Credit [ ] Grant [ 3 Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (US$m.): 100.00 Proposed terms: FSL DEVELOPMENT Total: 163.07 161.39 324.46 Borrower: People's Republic of China, represented by Ministry of Finance Responsible Agency: Fuzhou Development and Reform Commission, #21 Douxi Road, Fuzhou, Fujian 350005, China. Tel: +86 591 83367591 Fax: +86 (0) 591 334 6094 Does the project depart from the CAS in content or other significant respects? [ ]Yes [XINO Re$ PAD A.3 Does the project require any exceptions from Bank policies? Re$ PAD D. 7 Have these been approved by Bank management? N.A Is approval for any policy exception sought from the Board? [ ]Yes [XINO Does the project include any critical risks rated “substantial” or “high”? [ ]Yes [XINO Re$ PAD C.5 Does the project meet the Regional criteria for readiness for implementation? [XIYes [ ]No Ref: PAD D. 7 Project development objective Re$ PAD B.2, Technical Annex 3 The objective ofthe project is to support sustainable perkurban development in Fuzhou (as it expands to include Nantai Island) with the provision of strategic transport infrastrwture and by strengthening the city’s decision support system on land development and management. Specifically, the project supports perk urban development in Nantai Island with: (a) investments in transport access to Nantai Island (road and public transport); and (b) TA that would help the city to strengthen the manner in which the development is planned (to encourage development patterns that promote public transport while integrating environmental concerns upstream in the
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