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Multi-Page.Pdf Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 11985-CHA STAFF APPRAISAL REPORT Public Disclosure Authorized CHINA SECONDSHANGHAI METROPOLITAN TRANSPORT PROJECT SEPTEMBER10, 1993 Public Disclosure Authorized MICROGRAPHICS Report No: 11985 CHA Type: SAR Environment and Urban Development Division Public Disclosure Authorized China and Nongolia Deparment East Asia and Ptcific Regional Office This do_ment bas a restricted dstribution and may be used by recipients only in the perfonnance of their ofcid duties. Its contents may not otherwise be disclosed wihout World Bank authoition. CURRENCYEQUIVALENTS (as of March 31, 1993) Currency name = Renminbi Currency unit = Yuan (Y) $1.00 = Y 5.70 $0.19 = Y 1.0 FISCAL YEAR January I - December 31 WEIGHT AND MEASURES 1 meter (m) = 3.28 feet (ft) 1 kilometer (kim) = 0.62 mile (mi) I square meter (m) = 10.76 square feet (ft2) 1 square kilometer (km) = 0.4 square miles (mi) 1 hectare (ha) = 0.01 (in 2) = 2.47 acres (ac) = 15 mu 1 mu = 666.7 e2 = 0.0667 ha 1 kilogram (kg) = 2.2046 pounds (lbs) I metric ton (m ton) = 2,204 pounds (lbs) ABBREVIATIONSAND ACRONYMS 8FYP - Fighth Five-Year Plan (1991-95) SCPDRI - Shanghai City Planning and Design 9FYP - riinth Five-YearPlan (1996-2000) Research Institute ATC - Area Traffic Control SERAP - Shanghai Economic Reform Action CBD - Central BusinessDistrict Program EA - Environmental Assessment SESRI - Shanghai Enviromnental Sciences EAP - EnvironmentalAction Plan ResearchInstitute EIRR - Economic Internal Rate of Return SFB - Shanghai Finance Bureau EMP - EnvironmentalMotnitoring Plan SMTICO- ShanghaiInternational Tendering and ERP - EmergencyResponse Plan Import Company ERR - Economic Rate of Return SM - Shanghai Municipality FYRR .- First Year Rate of Return SMAB - Shanghai Municipal Audit Bureau GDP Gross DomesticProdu!t SMCC - Shanghai Municipal Construction GNP - Gross National Product Commission ICB - InternationalCompetitive Bidding SMEAD - Shanghai Municipal Engineering IRR - Inner Ring Road AdministrationDepartment LCB - Local CompetitiveBidding SMECC - Shanghai Municipal Engineering LIB - Limited InternationalBidding ConstructionCompany MCon - Ministry of Construction SMTP I - First Shanghai Metropolitan MV - Motor Vehicle Transport Project NEPA - National Environmental Protection SOE - Statementof Expenditure Agency SPC - State PlanningCommission NMV - Nonmotorized Vehicle SPSB - Shanghai Public Security Bureau NSC - North-South Corridor ST - Shanghai Transit PIU - Project Implementation Unit TA - Technical Assistance PMS - Pavement Management System TMP - Traffic Management Program PRC - The People's Republicof China TMS - Traffic Managementand Safety PSB - Public Security Bureau TVE - Township and Village Enterprise RAP - Resettlement Action Plan UNDP - United Nations Development SAA - State AuditAdministration Programme SCCIPI - Shanghai City Comprehensive VIM - VehicleInspection and Maintenance Transport PlanningInstitute VOC - VehicleOperating Cost FOR OMCIALUSE ONLY CHINA SECOND SHANGHAIMETROPOLITAN TRANSPORTPROJECT LOANAre PRoJEcT SUMMARY Borrower: People'sRepublic of China B fdkic : ShanghaiMunicipality Amount: $150 millionequivalent Terms: 20 years, including5 years of grace, at the Bank's standardvariable intere rate. Objectives: The keyobjectdves of the proposedproject, in supportof the economic and socialdevelopment of Shanghai,are: (a) to enhanceeconomic productivityby improvingthe operationaland economicefficiency of the urban transport system; and (b) to strengthenpublic sector managementcapacity by improvingthe planningand managementof the urbantransport system. Description: The projectincludes: (a) constructionof about22 km of the Shanghai InnerRing Road (IRR)Stage 2 as a four-laneviaduct lining the new Nanpuand YarngpuBridges over the HuangpuRiver with the Stage 1 IRR now in constructionunder the first Bank-financedShanghai MetropolitanTransport Project (SMTPI); (b) a TrafficManagement and Safety componentto extendthe signalizedArea Traffic Control systemin the city center, equipa Road SafetyResearch Center, and extend the Traffic ManagementPro-ram started under SMTP I; (c) investmentsin public transport to istruct and equip two bus depotsand one businterchange for the ShiaxghaiTransit Company; and (d) technicalassistance to supportproject implementation and to give furthersupport to transportplanning institutions. Beneits: The project wouldalleviate traffic congestionby both (a) providing much neededadditional traffic capacity,and 0b)making travel by publictransport and nonmotorizedvelicles more attractiveand safer. The IRRStage 2 wouldprovide greatly improved access to the Pudong developmentzone via the new HuangpuRiver - idges, thus removing a seriousimpediment to growth in this importantregion. Benefits Thisdocument has a restricteddistribution and maybe used by recipientsonly in the performame of their offcW dudes. Its contents may not otherwisebe disclosed without Wotid Bank authorization. wouldaccue in the formof vehicleopert costsavings, savings In person taveldme, reductionsin acdent costs, and in cozjuncto witi Shaghai's economicreform actionpla imI, in ger onomic growthin the City,and eseially in Pudong. Risks: Delaysare possible in theconstrcto of the IRRviaduct, but th risk is cnsdered small. This project is the top-priorityroad invetment of Shanghai;furthermor, a verysmilar project (IRR Stage 1 underthe SW"r I project)i underway, and te minordeays and difficulties in its implementationhaexdeady prvided use leson. Thereis dhe risk that inadequateattention will be paid the surfae traffic engineeringworks and minorinvestmts neededto realizethe ful benefitsof the ng road imvements. Theseaspects have been conideredto the extentpossible in projectdesign, and ShangLal Muniipalit (SM)is iely to resond quicklyif problemsdo omcr. Te is alsoa risk that roadtrffic in the IRR corridormay grow muchfster thananticipated at thetme thisproject was identfied,so ta theIRR will once again expiene seiouscongestion. While this i possible,the extnsve tansportinvstment program of SM should enswea growingtaffic capt to counterthis rsk. Fmally,the risk that SM will not implementa taffic managementstrategy with suificientpriority, thus diminishingthe b-nefits of the tffic mlanagtementcomponents of this priject, cannotbe dicouted in the shortterm, but can be couantredby continuingstrong support for the taffic managementagencies in Shanghai,building on the progress wchievedin SMP I. Fmated Costs Lad Foredgn ltal ($ million) A. InnerRing Road 229.7 257.5 487.2 B. Traffic Managementand Safety 20.7 13.3 34.0 C. Public TIanspot Investments 17.2 11.8 29.0 D. Technical Assnce 0.0 1.1 1.1 Totl lBaseCost 26t 283. S PhysicalContingencies 16.4 18.1 34.5 PriceContingencie 54.7 16.6 71.3 logl Pject Cost 338.7 318.4 671 FinancingPlau MunicipalGovernment 338.7 168.4 507.1 IBRD 0.0 150.0 150.0 Bank FY Il r2 1299 1Z 1221 ($Smin) Annual 28.3 39.6 43.5 38.5 0.1 Cumulative 28.3 67.9 111.4 149.9 150.0 T'Oveo Cae gory: Not applicable Rate of Return: 20 percent for the IRR Stage 2 Maps: IRD 24983 and 24984. -iv- CONTENTS 1 The Urban SectorIn China ....... *..................... 1 A. Demogphicand EonomicTrends ..................... 1 B. Nationa UrbaizationStrategy andIssues ............. 4 C. UrbanTransportssues .............. * 7 D. LessonsLearned from PasPjt . ..............*.*... ...... * 8 2 Urban TansportIn Shanghai . .................... 10 A. IntroductiontoUrban Shanghai ....................... 10 B. EconomicReforin inShanghai ........................ 11 C. MasterPlnning ............. , ........ 14 D. Road System..... ................. 14 E. PublicTransport System . ................ 17 F. TravelDeimand . ......... .................. ... 19 G. Transport and the UrbanEnvironment.................. 20 H. UrbanTr3ansport Institutions. .................. 21 J. SM Medium--erm Transpot InvestmentProgram ............ 22 3 The1ProJect..... .. ... too.. 24 A. Originand Formulaion . .................... 24 B. ObjectivesandRationale for BanM nvolvement. ........ 25 C. Dlescription........... .. ........ .... 26 D. Environment.................. 30 E. Lmd Acquisitionand Resetement................... 32 F. CostEstiates ..... ............. ......... 33 G. Fi n . ... ...... ........... 34 H. Imiplemenitation........ .. 00.0.... ... .. .. 34 I. Prourement.................. 36 This report is based on the findingsof a February1993 apprai missioncomprising StephenStares (SeniorTransport Specils, Task Manager),Edward Dotson (Urban Transport Specialist),Hubert NovJosserand TmrnsporSpecalt), Randal Vick (ProcurementSpecialist),Gerge Mahoney(Engineer, consutant), (eorgeBeie(Transport Economist,consultant), Youxuan Zhu (estdement Specia, condutant),Husam Anwar (EnviromentalSpeciaist, consultant)and GladysFrame TrafficEngineer, consulant). Peer Reviewersfor the projectwere RichardScurfield Princpal TransportSpecialt), AndrewHamer (Principal Sector Economist), Paul Cadario (Chief Administrative Officer). The DivisionChief is KatherineSierra and theDepartent Directoris ShahidJaved Burid. V- J. Audbisgmt . .. .. .. ... .. ... ... 39 K. Auditig *..........................*************** Z*4 L. Suprvion,Rqtig, andMonitoring . ................ 40 4 EcoonlEZva o ................. * *............ ..... 42 A. EoonomicRationae for Project Design ....... .............. 42 B. PrqectBeniefits .......................................... 43 C. EonomicRates of ReMt ................................. 44 D. JojectiRWs ....... ......... I... ........... 45
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