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Jiangxi Province Fujian Province Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 34673-CN PROJECT APPRAISAL DOCUMENT Public Disclosure Authorized ON A PROPOSED LOAN IN THE AMOUNT OF US$200 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A Public Disclosure Authorized THIRD JIANGXI HIGHWAY PROJECT May 24,2006 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 oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Exchange Rate Effective January 6,2006 Currency Unit = Yuan (Y) Y 1.00 = US$0.124 US$l.OO = Y 8.07 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS AADT = Average Annual Daily Traffic km = Kilometer BOT = Build-Operate-Transfer km2 = Square Kilometer CDIJP = Communications Design Institute of Jiangxi LRIP = Local Roads Improvement Program Province M = Million CNAO = China National Audit Office m = Meter CPS = Country Partnership Strategy m2 = Square Meter CQ = Consultant Qualification MOC = Ministry ofCommunications DA = Designated Account MOF = Ministry ofFinance EA = Environmental Assessment MTE = Medium Truck Equivalents EAP = Environmental Action Plan mu = Chinese measure of land area (1 5 mu/ hectare) EL4 = Environmental Impact Assessment NCB = National Competitive Bidding EIRR = Economic Internal Rate ofReturn NPV = Net Present Value EMP = Environmental Management Plan NTHS = National Trunk Highway System EMDP = Ethnic Minority Development Plan OD = Origin/Destination EPB = Environmental Protection Bureau PCU = Passenger Car Units ETC = Electronic Toll Collection PMO = Project Management Office E&M = Electrical and Mechanical PPIAF = Public-Private Infrastructure Advisory Facility FIRR = Financial Internal Rate of Return PRC = People’s Republic of China FMR = Financial Management Report PRO = Project Resettlement Office FSL = Fixed-Spread Loan QCBS = Quality- and Cost Based Selection GCTAB = Ganzhou City Traffic Administration Bureau RAP = Resettlement Action Plan GFB = Ganzhou Finance Bureau RGE = Ruijin-Ganzhou Expressway ICB = International Competitive Bidding RIB = Resettlement Information Booklet ICR = Implementation Completion Report RPF = Resettlement Policy Framework IDF = Institutional Development Fund SA = Special Account JHP2 = Second Jiangxi Highway Project SBD = Standard Bidding Documents JHP3 = Third Jiangxi Highway Project SEPA = State Environmental Protection Agency JPCD = Jiangxi Provincial Communications SIA = Social Impact Assessment Department SOE = Statement ofExpenses JPFD = Jiangxi Provincial Finance Department TGE = Taihe-Ganzhou Expressway JPHAB = Jiangxi Provincial Highway Administration TOR = Terms ofReference Bureau voc = Vehicle Operating Cost JPHHAB = Jiangxi Provincial High-class Highway VSL = Variable-Spread Loan Administration Bureau Acting Regional Vice President: Jeffrey S. Gutman Country ManagerDirector: David R. Dollar Sector Manager: Jitendra N. Bajpai Task Team Leader: Christopher R. Bennett CHINA Third Jiangxi Highway 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 ................................................... 2 B. PROJECT DESCRIPTION ................................................................................................. 2 1. Lending Instrument ................................................................................................................. 2 2 . Project Development Objective and Key Indicators ............................................................... 2 3 . Project Components ................................................................................................................ 3 4 . Lessons Learned and Reflected in the Project Design............................................................ 4 5 . Alternatives Considered and Reasons for Rejection............................................................... 4 C. IMPLEMENTATION .......................................................................................................... 5 1. Partnership Arrangements....................................................................................................... 5 2 . Institutional and Implementation Arrangements .................................................................... 5 3 Monitoring and Evaluation ofOutcomes/Results ................................................................... 6 . ... 4 . Sustainability ........................................................................................................................... 6 5 . Critical Risks and Possible Controversial Aspects ................................................................. 6 6 . Loadcredit Conditions and Covenants .................................................................................. 7 D. APPRAISAL SUMMARY ................................................................................................... 8 1. Economic and Financial Analyses .......................................................................................... 8 2 . Technical ................................................................................................................................. 9 3 . Fiduciary ............................................................................................................................... 10 4 . Social..................................................................................................................................... 10 5 . Environment .......................................................................................................................... 11 6 . Safeguard Policies................................................................................................................. 14 7 . Policy Exceptions and Readiness .......................................................................................... 14 Annex 1: Country and Sector or Program Background......................................................... 15 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 20 Annex 3: Results Framework and Monitoring ........................................................................ 22 Annex 4: Detailed Project Description...................................................................................... 27 Annex 5: Project Costs ............................................................................................................... 33 FOR OFFICIAL USE ONLY This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. Annex 6: Implementation Arrangements ................................................................................. 34 Annex 7: Financial Management and Disbursement Arrangements ..................................... 36 Annex 8: Procurement Arrangements ...................................................................................... 43 Annex 9: Economic and Financial Analysis ............................................................................. 50 Annex 10: Safeguard Policy Issues ............................................................................................ 67 Annex 11: Project Preparation and Supervision ..................................................................... 81 Annex 12: Documents in the Project File ................................................................................. 83 Annex 13: Statement of Loans and Credits .............................................................................. 84 Annex 14: Country at a Glance ................................................................................................. 89 Annex 15: Maps........................................................................................................................... 91 IBRD 34204. IBRD 34205. IBRD 34206. January 2006 CHINA THIRD JIANGXI HIGHWAY PROJECT PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC EASTR Date: May 24,2006 Team Leader: Christopher R. Bennett Country Director: David R. Dollar Sectors: Roads and highways (100%) Sector ManagedDirector: Jitendra N. Bajpai Themes: Regional integration (P); Other public sector governance (P); Export development and competitiveness (P); Rural services and infrastructure (S) Project ID: PO93906 Environmental screening category: Full Assessment Lending Instrument: Specific Investment Loan [XI Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (US$m.): 200.00 Proposed terms: VSL, 20 years, including 5 years of grace and annuity principal repayment, at six-month LIBOR for US$200 million plus variable spread for Variable-Rate Single Currency Loans RECONSTRUCTION AND DEVELOPMENT Total: 544.61 166.78 711.39 Borrower: PEOPLE'S REPUBLIC OF CHINA Responsible Agency: Jiangxi Provincial Communications Department 3'd Floor Fangxin Building No. 508 Hongcheng Road Nanchang, Jiangxi, 300025 People's Republic of China Tel: 86-791-652-4052
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