Document of The World Bank Public Disclosure Authorized
Report No. 14034-CRA
STAFF APPRAISAL REPORT Public Disclosure Authorized
CHINA
SHANGHAI-ZHEJIANG HIGHWAYPROJECT Public Disclosure Authorized
JULY 11, 1995 Public Disclosure Authorized Transport Operations Division China and Mongolia Department East Asia and Pacific Regional Office CURRENCYEQUIVALENTS (as of January 1995)
Currency name = Renminbi Currency unit = Yuan (Y) = 100 Fen $1.00 = Y 8.50 $0.115 = Y 1.00
FISCAL YEAR
January 1 - December 31
WEIGHTSAND MEASURES
1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 mile (mi) 1 square meter (m2) = 10.76 square feet (ft2) 1 square kilometer (kM2 ) = 0.4 square miles (mi2) 1 hectare (ha) = 0.01 (km 2 ) = 2.47 acres (ac) = 15 mu 1 mu = 666.7 m2 = 0.0667 ha 1 kilogram (kg) = 2.2046 pounds (lbs) 1 metric ton (m ton) = 2,204 pounds (lbs) PRINCIPAL ABBREVIATIONS AND ACRONYMS USED
6FYP - Sixth Five-Year Plan (1981-85) SAA - State Audit Administration 7FYP - Seventh Five-Year Plan (1986-90) SFB - ShanghaiFinance Bureau 8FYP - Eighth Five-Year Plan (1991-95) SITC - ShanghaiInternational Tendering 9FYP - Ninth Five-Year Plan (1996-2000) Company AADT - AnnualizedAverage Daily Traffic SM - ShanghaiMunicipality CRISPP - China Reform, InstitutionalSup- SMAB - ShanghaiMunicipal Audit port and PreinvestmentProject Bureau CTF - ConsultantTrust Funds SMCC - ShanghaiMunicipal Construction E&M - Electrical & Mechanical Commission EA - EnvironmentalAssessment SMEAB - ShanghaiMunicipal Engineering EAP - EnvironmentalAction Plan AdministrationBureau EIRR - Economic Internal Rate of Return SMEDI - ShanghaiMunicipal Engineering FYRR - First-Year Rate of Return Design Institute GDP - Gross Domestic Product SMG - ShanghaiMunicipal Government GNP - Gross NationalProduct SOE - Statementsof Expense GOC - Governmentof China SPC - State Planning Commission GOVAI - Gross Output Value of Agriculture SRIEP - ShanghaiResearch Institute for and Industry EnvironmentalProtection HHEC - Hu-Hang (Shanghai-Hangzhou) TA - Technical Assistance ExpresswayEngineering Construc- TCU - TechnicalCoordinating Unit tion ExecutiveCommission TOR - Terms of Reference (Shanghai) vpd - Vehicles per day HPDI - Highway Planning and Design YEZTS - Yangtze EconomicZone Trans- Institute port Study HSRI - Highway ScientificResearch Insti- ZP - Zhejiang Province tute ZPCD - Zhejiang ProvincialCommunica- ICB - InternationalCompetitive Bidding tions Department JHAB - Jiaxing Highway Administration ZPCDI - Zhejiang Provincial Bureau CommunicationsDesign Institute JST - Joint SupervisionTeam ZPEPB - Zhejiang Provincial Environ- LCB - Local CompetitiveBidding mental ProtectionBureau MAAP - MicrocomputerAccident Analysis ZPEC - Zhejiang Provincial Shanghai- Package Hangzhou-NingboExpressway MOC - Ministry of Communications Project Executive Commission MOF - Ministry of Finance ZPG - Zhejiang ProvincialPeople's NPV - Net Present Value Government NR - NationalRoute ZPHAB - Zhejiang ProvincialHighway NTHS - NationalTrunk Highway System AdministrationBureau pcu - Passenger Car Unit ZPRIEP - Zhejiang ProvincialResearch PMS - Pavement ManagementSystem Institute of EnvironmentalPro- PRC - People's Republicof China tection RAP - ResettlementAction Plan ZPTD - Zhejiang ProvincialTransport RDB - Road Data Bank Department RMF - Road MaintenanceFee ZPTDI - Zhejiang ProvincialTransport RSP - Road Safety Program Design Institute
CHINA
SHANGHAI-ZHEJIANG HIGHWAY PROJECT
Loan and Project Sunmnary
Borrower: People's Republic of China
Benefi'ciaries: Shanghai Municipalityand Zhejiang Province
Poverty: Not Applicable
Amount: $260 million equivalent
Terms: 20 years, including5 years of grace, at the Bank's standard variable interest rate
Commitment Fee: 0.75% on undisbursedloan balances, beginning60 days after signing, less any waiver
Financing Plan: See para 3.60
EconomicRate of Return: 33 percent for the project overall 33 percent for the Shanghai-HangzhouExpressway 54 percent for the Road Safety Programn
Maps: IBRD 25817, 25818 and 25819
Project Identification Number: CN-PA-3569
CONTENTS
1 Transport Bottlenecks and Reforms ...... 1
A. Background ...... 1 B. Traffic ...... 1 C. Transport Reforms ...... 2 D. The Highway Subsector ...... 4 E. Bank Group Participation ...... 8 F. Lessons from Previous Bank Operations ...... 11
2 The Transport Sector in Shanghai and Zhejiang ...... 14
A. Situation and Economy ...... 14 B. Transport Network ...... 14 C. Traffic Characteristics and Growth ...... 16 D. The Vehicle Fleet ...... 17 E. Road Safety ...... 18 F. Highway Development ...... 19
3 The Project ...... 22
A. Origin and Formulation ...... 22 B. Objectives and Rationale for Bank Involvement ...... 23 C. Project Description ...... 25 D. Status of Project Preparation ...... 31
This report is based on the findings of a November 1993 appraisal mission led by Stephen Stares and consisting of Rita Pasi, George Mahoney, Katsunori Suzuki, Christopher Robson and Ruwani Jayewardene. Subsequent missions involved Maninder Gill, Zou Youlan, and Aly Ercelawn, who contributed to preparation for resettlement activities under this project. Jose Veniard, Liu E, Lyra Pinto, Richard Leonard, Bavani Krishnamurthi, and Ashraf Ghani also contributed to completion of this Staff Appraisal Report. Peer reviewers for the project were Christopher Hoban (Transport Engineer), Stein Lundebye (Senior Highway Construction Industry Specialist) and Nick Anderson (Environmental Specialist). The Task Manager is Rita Pasi, the Division Chief is Richard Scurfield and the Department Director is Nicholas C. Hope. E. Environmental Assessment ...... 32 F. Land Acquisition and Resettlement ...... 33 G. Cost Estimates ...... 37 H. Financing ...... 39 I. Project Implementation ...... 41 J. Procurement ...... 43 K. Disbursements ...... 46 L. Project Monitoring and Supervision ...... 47
4 Economic Evaluation .49
A. Main Benefits and Beneficiaries .49 B. Evaluation of the Shanghai-Hangzhou Expressway .50 C. Evaluation of the Road Safety Program .58 D. Summary of Evaluation and Assessment of Project Risks .60
5 Agreements Reached and Recommendation .62
TABLEs
1.1 Traffic Turnover by Mode, 1980-1993 .64 1.2 Road Accident Risks in Various Countries, 1993 .65 1.3 China: Bank Group-Financed Transport Projects ...... 66
2.1 EconomiEconomicData, 1992 .68 2.2 Demographic and Transport Network atat, 992.69 2.3 Classification of Road Network in Shanghai and Zhejiang, 1981-93 ... 70 2.4 Shanghai and Zhejiang: Freight and Passenger Turnover by Mode, . . 1982-92 .71 2.5 Shanghai: Comparison of Freight and Passenger Volume by Mode, 1985 and 1993 .72 2.6 Shanghai and Zhejiang: Freight and Passenger Traffic Volume by Mode, 1982-92 .73 2.7 Zhejiang: Comparison of Freight and Passenger Volume by Mode, 1985 and 1992 .74 2.8 Zhejiang Province: Transportation Services by Sector .75 2.9 Shanghai and Zhejiang: Vehicle Fleet, 1984-93 . 76 2.10 Road Safety in Shanghai Municipality and Zhejiang Province .77 2.11 Traffic Accidents in Shanghai Section of Project Corridor .78 2.12 Composition of Shanghai Road Network, 1985-2000 .79 2.13 Projected Composition of Zhejiang Road Network .79 2.14 Zhejiang: Major Road Works, 1993-2000. . . . . 80 2.15 Shanghai: Highway Development Program, 1986-2000 .81 2.16 Zhejiang: Highway Development Program. . . . 82 2.17 Zhejiang: Transport Investments Planned for Improved Access to Hangzhou City .83 2.18 Shanghai: Highway Revenues and Expenditures, 1986-2000 .84 2.19 Zhejiang: Highway Revenues and Expenditures, 1986-2000 ...... 85 - 111 -
3.1 China: Highway Design Standards ...... 86 3.2 Staff Training Program - Shanghai Section ...... 87 3.3 Staff Training Program - Zhejiang Section ...... 89 3.4 Equipment To Be Procured - Shanghai Expressway Section ...... 91 3.5 Equipment To Be Procured - Zhejiang Expressway Section ...... 92 3.6 Equipment To Be Procured - Road Safety Program ...... 94 3.7 Summary of Equipment to be Procured Under the Project ...... 95 3.8 Estimated Disbursement Schedule ...... 96
4.1 Zhejiang: Traffic Growth on National Route 320 (AADT) ...... 97 4.2 Shanghai: Traffic Growth in Expressway Corridor ...... 98 4.3 Projected Traffic in the Shanghai-Hangzhou Corridor ...... 99 4.4 Shanghai-Hangzhou Corridor Estimated Travel Times and Speeds . .. . 100 4.5 Vehicle Operating Costs ...... 101 4.6 Estimated Construction Costs ...... 102 4.7 Shanghai-Hangzhou Expressway: Economic Evaluation without Tolling 103 4.8 Shanghai-Hangzhou Expressway: Economic Evaluation with Tolling . 104 4.9 Shanghai-Hangzhou Expressway: Economic Evaluation with Tolling and with Road Safety Program Improvements .105 4.10 Shanghai-Hangzhou Expressway: Economic Evaluation with Tolling and Road Safety Improvements - Low Growth and Low Diversion Scenario 106 4.11 Shanghai-Hangzhou Expressway: Sensitivity Analysis .107 4.12 Road Safety Program: Economic Evaluation .108 4.13 Road Safety Program: Sensitivity Analysis ...... 109 4.14 Overall Economic Evaluation for Shanghai-Zhejiang Highway Project 110
ANNEXES
1. Management of the Highway Sector in Shanghai and Zhejiang ... . 111 2. Road Safety Program ...... 122 3. Environmental Assessment and Action Plan Summary ...... 145 4. Land Acquisition and Resettlement ...... 171 5. Project Cost and Financing ...... 185 6. Project Implementation ...... 193 7. Supervision Mission Plan ...... 207 8. Selected Documents Available in the Project File ...... 211
MAPS
1. China: Major Highway Development Program-National Trunk Highway System (NTHS), IBRD 25817 2. Transport System in Shanghai and Zhejiang, IBRD 25818 3. Shanghai-Zhejiang Highway Project, IBRD 25819
1. TRANSPORT BOTTLENECKS AND REFORMSI/
A. BACKGROUND
1.1 The transport system in China has grown considerablyover the last four decades. Since 1952, the length of the highway systemincreased by a factor of nine and the length of the railway network more than doubled. Despite this development, the transport network is one of the sparsest in the world compared with the area and populationit serves. The main reason for this is China's low level of transport investment, which averaged only 1.4 percent of Gross National Product (GNP) during 1980-93, as compared with 2-3 percent for other countries such as India, the Republic of Korea and Brazil. The transport system is also characterizedby high intensity of freight traffic. To produce one dollar of economic output, China handles 50 percent more ton-kilometers (ton-km) of traffic than India and Brazil due to a relatively large heavy-industrysector, reliance on coal as the major source of energy and a large volume of other bulk products. These factors have resulted in a gap between transport supply and demand that is manifestedby the existenceof transportbottlenecks, the administrativerationing of limited transport capacity, the poor quality of services and losses to the economy.
1.2 The economic system in China is undergoing a major transition toward a market orientation and this transition will involve many reforms in the transport sector designedto increaseefficiency and improve its response to market forces. These reforms, which started in 1979, are now acceleratingdue to new governmentpolicies announcedin 1992 and 1993 by the 14th Party Congress.
B. TRAFC
1.3 China had experiencedrapid growth of traffic during 1980-89when the economy grew at an average annual rate of 9.5 percent. Traffic growth declined when the economic growth slowed down during 1989-90, as the supply constraints became more conspicuous. However, resumptionof high economicgrowth since 1991 has brought about a correspondingsurge in transport demand.
1.4 Traffic Growth. Despite the capacity constraintsand related bottlenecks, since 1980 freight traffic has grown at 7.4 percent per annum and total passenger traffic
1/ This chapter is an abstract of the Bank sector report (No. 1 1819-CHA) China Highway Development and Management Issues, Options and Strategies, February 1994. - 2 - at 11.8 percent per annum.2/ Highway freight traffic grew at the highest annual rate of 13.7 percent, comparedwith 5.8 percent for railway traffic and 8.1 percent for coastal and inland waterway traffic. Despite its rapid growth, intercitypassenger travel per capita in China remains very low, at about two thirds of the level for India. This is due primarily to the severe capacity constraints. Civil aviation traffic is rapidly expanding and has grown 20.9 percent per annum since 1980, but still represents a small share of total traffic with most long-distancejourneys made by rail (Table 1.1).
1.5 Transport Demand and Modal Split Trends. Althoughthe railway's share of traffic has declined over the last decade as the share of road traffic has grown, rail transport still dominatesfreight and passenger traffic in China. In 1993, 39.2 percent of freight and 44.3 percent of passenger traffic turnover were attributable to rail, with the remainder moved by road, inland waterway, coastal shipping,pipeline, and civil aviation. This preeminence of the railway is due in part to the past dependence of the Chinese economy on heavy industry and in part to the relatively long transport distances. In the case of passenger transport, dominance of the railway is due to the poor quality and inadequatecapacity of the road system and intercity bus services, the virtual absence of private automobiles,and the limited use of civil aviation. The movementtoward a market economy will increase demand for market-responsivetransport services, favoring a shift to road transport but still leavinga growing marketfor the relativelylow-cost rail transport system.
C. TRANSPORT REFORMS
1.6 In the past decade, China's economic reforms have aimed to increase economicefficiency through measuresdesigned to reduce nationalgovernment intervention in the production and distributionprocess, reduce the Government'sdeficits and subsidies to state-ownedenterprises, and open the economyby expandingtrade and allowing further participationof private and collectiveenterprises. In the transport sector, several reforms have been undertakenin line with these objectives-many with Bank assistance. Notably, the Government has:
(a) reduced the extent of commodity price distortions by (i) decreasing the volumes of commoditiesproduced in the State Plan, and (ii) raising the in- plan prices of commoditiescloser to market levels;
(b) increased the tariffs charged by state transport enterprises, including railway, highway and waterway, to levels approaching their long-run marginal costs;
(c) encouraged provincial governmentsto develop many local railways, which now total some 4,400 route-km and interconnectwith the national standard gauge network;
2/ As indicated by turnover volume of traffic. (d) allowed private individuals and collective and township enterprises to provide passenger and freight transport services on roads and inland waterways, and encouraged provincial and national authorities to develop transport systemswith private sector financing;
(e) carried out major structuralreforms in the organizationand managementof civil aviation and in the ports, leading to increased financialautonomy and accountability,and to less central governmentcontrols, thus paving the way for introductionof competitiveservices;
(f) reduced operating and capital subsidies for major infrastructure services, through higher cost-recoveryand increasedreliance on user-fundedcapital construction; and
(g) encouraged the introduction of more modem technology in the transport system primarily by improving rolling stock technology in the railways; enhancingcontainer and bulk handlingcapacity in the ports; improvingroad pavement design and geometric standardsfor the expansionof motorization in the highway subsector; and increasing the use of computerized data processing and planning techniquesin operations in all modes.
1.7 These initiativesare helping to spur the growth and modemizationof the transport system. However, much more needs to be done to bring about the changes required to deal effectivelywith the emergingissues. To alleviatethe transportbottlenecks and rationalize the transport system, the Govemment will need to take the following measures by the year 2000:
(a) increase the total level of transport investmentin relation to GNP, to expand capacity to meet the new traffic demands and to clear up the backlogs caused by past underinvestment;
(b) aim for balanced investmentsamong the major freight transport modes of railways, highways, and waterways in terms of optimal economic cost of transport;
(c) realign further the prices of freight transport services and those of the major commodities,especially coal, to bring them closer to their real costs;
(d) increase further the productivity of existing transport assets through technologicalmodernization and managementreforms; and
(e) improve and expand the multimodal transport system, both across and within modes, with particular emphasison more extensiveuse of containers. - 4 -
D. THEHIGHWAY SUBSECTOR
The National Highway Network and its Utilization
1.8 The highway network totaled 1,083,476 km at the end of 1993 but, relative to either population or geographic area, ranked among the sparsest in the world. An estimated 30 percent of China's villages have no access to roads adequate for motor vehicles. Investmentin the highway subsector has been rather modest, at 21 percent of total investment in the transport sector during the Seventh Five-Year Plan (1986-90). Since the early 1980s, the highway systemhas carried an increasing share of traffic. The network is, for the purposes of design and technical specifications,classified by Ministry of Communications (MOC) as Expressway (access-controlledhighways with divided carriageways for the exclusive use of motor vehicles), and Classes I, II, III and IV for various traffic capacities in different terrain. For administrative purposes, roads are classifiedas national, provincial, county, village, and special purpose.
1.9 China's road network consists mainly of aging roads with neither the capacity nor strength to carry current and projected future traffic. Many of the roads need upgrading in addition to normal maintenanceand rehabilitation. A Bank policy study on road deterioration in developing countries classified China among the countries with an extensiveand obsolete road network in need of modernizationto meet the rapid growth in road transport demand. AlthoughChina has not neglectedroad maintenance,its outmoded maintenancetechnology would not be sufficientto arrest the accelerated deterioration of the aging road system network. China needs to mobilizedomestic and external resources for modernizing its road system with special emphasis placed on technology transfer, institutionalimprovement, and developmentof skills. There are few absorptive capacity constraints relative to achieving these objectives given China's decentralized, stable, and financiallyaccountable highway administrationstructure.
1.10 The rapid growth of highwaytraffic stems not only from the country's rapid economic growth but also from other factors such as the national policy of shifting short- haul transport from rail to road as well as the expansion of the service sector and rural industries. Furthermore, with the increase in foreign trade, growth in transport demand will be concentratedin transport corridors serving the main ports and their hinterlandsand, with containerization of higher value commodities, most domestic movements of this foreign trade are expected to go by road. The new economic activities have generated traffic in excess of what many of the existing facilitiescan accommodate. Congestionon roads resulting from the mix of slow-movingnonmotorized and motorized traffic is also a serious problem.
1.11 The vehiclefleet in 1993 totaled 8.2 million trucks, buses and cars, mainly gasoline-powered,with trucks comprisingabout 61 percent. Most trucks are of four-ton capacity with outmoded designs and low fuel efficiency. These vehicles were manufactured domestically and, until recently, the production of trucks was barely sufficientto replace the retired vehicles, let alone meet growing demand. It was not until the early 1980s that large numbers of modern vehicles were imported and joint ventures with foreign manufacturersstarted to manufacturetrucks and passenger cars. Production - 5 - of motor vehicles has grown steadily, reaching 714,000 units in 1991, of which 410,000 were trucks, 180,000 cars, and 124,000 were chassis, finished mostly as buses. This productionis contributingto the creation of a modem fleet, althoughthe older vehicles still predominate.
1.12 Growth in the truck and bus fleet has been fairly steadyat an average annual rate of 12.3 percent over the last 12 years, with particularly strong growth in small passenger vehicles. Growth in the tractor and motorcycle fleets has increased sharply, with motorcyclesshowing the strongest growth of all vehicle types.
1.13 The compositionof vehicles using China's roads is diverse, including a variety of motorized and a large number of other (non-motor)vehicles. The tractor and motorcyclefleets, for example, at 5.4 millionand 6.5 millionrespectively, well exceedthe size of the truck and bus fleet. Tractors and motorcyclesoffer a relativelycheap and basic form of transport, but contribute significantly to traffic congestion and are among the major causes of road accidents. The domestic production of vehicles reflects the importanceof non-motor vehicles in China: in 1993, production comprised41.5 million bicycles, 3.6 million motorcycles, 1.3 million trucks, cars, and buses and 1 million tractors.
1.14 The truckingindustry consists of publicly-ownedtrucks operated by trucking companiesaffiliated with local (provincialor district) highwayauthorities, and other trucks operated by factories, cooperative organizationsand, recently, private individuals. The relaxation of trucking regulations in the early 1980's allowed own-accounttrucks to haul cargo for other factories and cooperativesand thus promoted competitionbetween public and own-accounttrucks. In fact, nonpublic trucks have absorbed most of the growth in traffic over the past few years. However, trucking costs are extremely high, stemmingin part from technologicalfactors (poor roads, outmoded trucks, relatively low utilization of carrying capacity, etc.) and from a lack of experience in fleet management, which is essential to the developmentof modem and efficient trucking services. While market forces are expected to play a more importantrole in shaping the industry in the future, it is necessary to understandthe current constraintsto such developmentand to identify the measuresneeded to allow the reshapingof the industry to take place. In order to explore these issues more fully, a ProvincialTrucking Study was included as a componentof the Bank-assistedHenan Provincial Highway Project, and a separate study of the trucking industry was completedby the Bank in 1995.
1.15 Road safety is an important issue in the developmentof China's road sector, as traffic continues to grow rapidly on all roads and a high-speed, national highway network is developed. The frequencyand numbers of people involvedin traffic accidents has reached serious proportions in China. The annual fatality rate per 10,000 vehicles in China is 46, as compared with rates of 33 in India, 12 in Indonesia, 5 in Mexico, 9 in Thailand, 18 in Hungary, and 2 in the United States, Canada, and the United Kingdom (Table 1.2). A detailed study of road safety completedunder a Bank-financedHighway Project indicated that China's accident rate was one of the highest in the world, at an - 6 - estimated 100 deathsper 10,000 vehicles in 1987. The socialand economiccosts of these incidents to the Chinese economy reached almost $1 billion annually. 2/
1.16 The study also identified essential measures needed, including improved police accident reporting; introductionof computer-basedaccident analysis; identification of accident causes and dangerous road spots; preparation of guidelines for road safety design; improvedadministrative procedures; improved manpowertraining; and preparation of a road safety action plan. The responsibilityfor highway safety matters was transferred from MOC and the provincial CommunicationsDepartments to the Ministry of Public Security and its provincial units in 1988. This decisioncreated transitionaladministrative problems. These have been overcome in some provinces through good cooperation between the provincial highwayadministration bureaus and the concerned public security units. Moreover, the public security and highway bureau personnel often work together to identify and improve road configurationsat high-frequencyaccident locations. There has been also improvement in the accident reporting system, as advocated in the 1987 study. In most provinces, computerizedrecord systemsare planned or are being installed.
Highway Administration,Planning and Finance
1.17 Administrationof the highwaynetwork is the responsibilityof the provincial governments, through the Highways Bureaus of the Provincial Communications Departments. Arrangements for administration vary among provinces; in the more decentralizedones, the county and municipalgovernments perform someadministrative and all of the operationalfunctions relating to the highway network. The central government's MOC provides generalpolicy guidanceand support to the provinces through its nationwide policiesand regulations,specifying design and constructionstandards. At the project level, MOC is involvedin review and comment during the planningand design phases, and also in regulating the import of constructionequipment for major provincial civil works, as needed. However, the ProvincialCommunications Departments are financiallyindependent of MOC and carry out all road planning, construction,maintenance, and operationof roads and waterwaysin the provinces. MOC is more heavily involvedin certain large projects that are considered of national importance. The central governmenthas in the past borne part of the financial burden for key highway projects, but is increasingly constrained in providing grant funding for the rapidly expanding national network. The key highway agencies in Shanghai Municipalityand ZhejiangProvince are described in Annex 1.
1.18 While the provinces manage the country's highway network, MOC is responsible for planning and investment strategiesfor the development of the National Highway System. A reclassificationof the country's road network in 1981 led to the designation of key interprovinciallinks as National Highways. More recently, MOC has been evolving a long-term strategy for the systematicupgrading of the national system in key corridors over a 30-year planning horizon. Known as the National Trunk Highway System (NTHS), the system, comprising 12 major roads for the exclusive use of motor vehicles (Map IBRD 25817) would connect all the provincial capitals and cities with
3/ The costs analyzed in this case included loss of life, injury, property damage, reduced productivity, and medical, funeral, and legal costs. - 7 - populations exceeding 500,000. Developmentof the NTHS system has been accorded highest priority in investmentplanning for the highwaysector. Constructionof 25,000 km of high standard, access-controlledroads of the NTHS is expected to be completed by 2025. Priority for early constructionis being given to those routes already identified as congested and hindering economic activity. By the end of 1991, some 500 km of the systemhad been built, and a total of 4,000 km is envisaged to be completedby the end of the Eighth Five-Year Plan (8FYP) in 1995. The provincial governmentsare responsible for route location, engineering design, construction, operation and maintenance of the national highway system. At the provincial level, in addition to coping with the routine maintenanceof the networks, priority has been given to the expansion and improvement of the provincial, county and rural road networks, to provide for greater mobility and to stimulate socioeconomicactivity, particularly in the country's less developed regions.
1.19 A system for funding highway construction and maintenance is well establishedalthough there are differencesbetween provinces according to local needs and circumstances. The main revenues are generated by the Road MaintenanceFee (RMF), typically levied on the revenue of freight and passenger transport companies and on the capacity of own-accountvehicles. The RMF is levied by the provinces who retain the majority of the monies after remitting a portion to Central Governmentagencies. MOC also directly receives revenues from the Added Vehicle Purchase Fee, a supplementary earmarked tax on vehicle imports and sales, and uses these funds, which currently reach about Y 2 billion/year, to contribute financingfor: (a) the roads included in the national highway network, providing a higher share of financingfor the poorer, inland provinces and a lower share for the richer, coastal provinces, and (b) constructionor rehabilitation of rural roads located in economicallyless-developed areas. However, according to a recent study by MOC, if funding both national and provincial roads remains at currently budgeted levels until the year 2000, it will fall 30 percent short of the amount required to develop the highway system in line with the projected growth in demand. The issue is especiallycritical in those provinces with the fastesteconomic growth, where road systems are experiencingthe highest levels of congestionand deterioration.
1.20 In addition to its role in planning and financing, MOC serves an important function as coordinator for the constructionof priority sections of the national highway network; in early 1990,MOC establisheda TechnicalCoordinating Unit to maintain close contact with those provinces executing projects financed by the Bank Group. The unit's main focus has been to provide guidance to the project executing agencies and to coordinate staff training and the development of a Road Data Bank and Pavement ManagementSystem at the provincial level, as part of a national investmentplanning and prioritization system.
1.21 In summary, despite governmentefforts to improvethe highway system and its utilization and administration, much more is needed to modernize the system to effectively meet the increasing demands placed on road transport, by improving both physicalcapacity and managementof the sector. The key areas, as reflected in the Bank's recent sector work on developmentand managementof the highway sector (paras. 1.23 and 1.24) on which the government should focus attention for improvement through institutionalreforms and training are: - 8 -
(a) the role of MOC, to be made consistent with the rapid administrative decentralizationtaking place in the managementand financing of highway developmentand maintenance,and for MOC to be strengthenedto carry out its reformed mandate,particularly in matters such as finance; standardsfor planning, design, and road safety; promotionof the NTHS; and training;
(b) highway planning and investment strategies, to better identify short- and long-term highway developmentpriorities;
(c) preparation of feasibility studies utilizing modem highway analytical techniques, based on data and relationshipsreflecting actual conditionson China's highways;
(d) highway maintenance, to be modernized through improved planning and new technologyin order to optimize network performance;
(e) cost recovery and financing, to provide the necessary resources to meet increasingfinancing needs for construction,maintenance and operationsand to encourageefficient use of the highway system;
(f) operations of the road user services industry, both freight and passengers, to reduce costs and improve quality of services, through promotion of competition, modern technology and better management;and
(g) the road constructionindustry, to improve the management,understanding, and application of contract conditions; to modernize equipment, and to clarify client, contractor and supervisionrelationships.
E. BANK GROUP PARTICIPATION
1.22 The BankGroup has supportedinitiatives by the Governmentin the transport sector through loans and credits totaling $4.7 billion for 30 projects (Table 1.3). The dialogue between the Governmentand the Bank Group on transport sector operationsand strategy has been strengthenedthrough long-term strategy studies for railways, highways and ports development, and through project preparation activities and project-financed studies as well as sector studiescarried out in collaborationwith Chinese authorities. The various studies have, inter alia, emphasizedthe areas of multimodaltransport investment and the setting of sectoral priorities based on systemwide economic evaluation techniques.4/
4/ Six of the studies have explored multimodal pricing and investment issues in a more comprehensive and more economically oriented analytical framework than was formerly available to China's decision makers: the Guangdong Comprehensive Transport Planning Study (GCTPS); the Yangtze Economic Zone Transport Study (YEZTS); the Coal Transport Study (CTS); the Railway Investment Study (RIS); the Southeast Coastal Region Strategic Issues in Ports and Shipping Development Study (SIPS); and the Price Reform Study. -9-
Transport Sector Work
1.23 RecentBank Group reports on the transport sector include China's Railway Strategy (No. 10592-CHA) issued in February 1993, Highway Development and Management: Issues, Optionsand Strategies (No. 11819-CHA) issued in February 1994, and Strategiesfor Road Freight Development (No. 12600-CHA)issued in January 1995. In addition, studies on the trucking industry and highway financing have been completed under ongoing projects, a study of the provincial road construction industry will be undertakenunder the Fujian ProvincialHighway Project, a study of interprovincialtraffic facilitationand a highway capacity study will be undertaken under the National Highway Project (Hebei/Henan),and a study of intercity passenger transport is included under the XinjiangHighway Project. The Bank Group also conducteda survey of the national water transport system in the mid-1980s, which has reaffirmed the need to further exploit the large potential of the Chinese waterways. As a follow-up to the study, a multipurpose inland waterway investmentproject was recently approved. Furthermore, a program for institutionalstrengthening of MOC is being prepared and will be supportedunder the China Reform, Institutional Support and PreinvestmentProject. The main objectives of this program are to strengthenMOC's capabilityin sectorplanning; to strengthenthe collection and analysis of data, both for investment planning functions and for performance monitoring; and to provide consultingassistance in carrying out selected transport sector policy and planning studies.
1.24 On the basis of its project and sector work, the Bank has an opportunity to deepen its involvementand assist the Government in the design and implementationof institutional and sectoral reforms in areas such as strategy formulation, investment planning, pricing, financing,deregulation of transportservices, operationalefficiency, and transfer of advancedtransport-related technology through training and provision of up-to- date equipment. Chinese authorities and the Bank Group are currently preparing a comprehensive transport sector strategy paper that is expected to help guide sector developmentin a consistent, cohesive policy framework.
The Bank's Experience and Strategy in Highways
1.25 Of the 12 Bank-assistedhighway projects in China, to date only the first Highway Project has been completed. The project, which was designed to construct and improve 7 segments of the national network and 59 segments of provincial/countyroad networks in nine provinces, achieved its original objectives and clearly demonstratedthe benefits accruing from improved accessibility to communities deprived of adequate transport infrastructurein economicallyless-developed regions. Economicactivity in the area of influence of most project roads surged and income levels increased noticeably. Furthermore, the Bank's involvement facilitated the acceptance of competition in the contracting for road works in preference to force account operations even for smaller civil works contracts, as well as the merits of supervisionof constructionby speciallyassigned units.
1.26 The Bank strategyfor highway lending in the medium term is detailed in HighwayDevelopment and Management: Issues, Optionsand Strategies. The strategy is - 10 - to continue supportinginstitutional development and sectoralreforms aimed at modernizing the highway system and its management,and supporting investmentsfocused on high- priority links of the NTHS and the provincial road networks that feed into it.
1.27 While some institutionaldevelopment and sectoral reform componentssuch as staff training, environmentalprotection, resettlementof affected individuals and road safety will normally be included in every project, specific issues such as highway sector financing, the efficiency and quality of road freight and passenger services, the construction industry and other issues identified during the Bank's dialogue with the government (para 1.21), will be addressed selectively in individual provincial projects through studies, pilot reforms or other actions, with a view to formulating recommendationsthat may also serve other provinces. During the next few years, the projects' investment components will continue to focus on high priority links of the national highway system, and to support the developmentof the provincial road networks. The strategy also envisages continuedclose collaborationwith MOC, assisting it through economicand sector studiesand through lendingoperations, to adapt to the evolving needs of the Chinese economy. The issues expected to be addressed in Bank-financedprojects include the following:
(a) identificationof a structure for adequate road user charges and financing mechanisms, in order to mobilize the necessary resources for road development and equitably recover from users the costs of the highway system;
(b) promotion of adequate road freight and passenger services, including the entry of private, collective, and township enterprises as reform of the transport sector proceeds;
(c) upgrading the capacity and effectiveness of the highway construction industry, creating an enabling environment for the corporatization of provincial construction companies, and opening opportunities for the developmentof collectiveand private contractors;
(d) integrationof road transport services with other modes, particularly in the field of containerization, and the establishment of modern, integrated multimodalservices;
(e) planningand budgetingof highwayexpenditures, includingmonitoring and control of monetaryand physicalobjectives, and efficiency of disbursement procedures;
(f) organizationand managementof the highway corporations being set up to operate toll highways;
(g) highway maintenancemanagement, including finances, resource allocation, organization,and operations; - 11 -
(h) expansion of funding for road infrastructure, including analysis of recent Chinese and internationalexperience with special emphasis on frameworks and demonstrationprojects to promote private financing;
(i) highway constructionand maintenancecosts, to analyze costing practices, assess actual prices and stimulatecommercially-oriented bid prices; and
(j) other issues that may be of interest in individualprovinces.
The proposed Shanghai-ZhejiangHighway Project supports the Bank's assistance strategy for the highway sector throughan investmentcomponent for constructionof the Shanghai- Hangzhou Expressway, a high priority, interprovinciallink on the NTHS, and through a pilot program of physical investmentsand technical assistance designed to improve road safety in the project corridor.
F. LESSONSFROM PREvious BANK OPERATIONS
1.28 The Bank has accumulatedsubstantial experience on the highway sector in China through the preparation and implementationof twelve previous highway projects. Of these, one highway project has been completedand a second was recently closed.
1.29 Bank experiencein China showsstrong implementationcapacity for the main physical components in highway projects and for expressway components in particular. However, delays in implementationoften occur for other project components: lack of familiarity with procurement procedures and inadequateplanning and design of traffic engineeringfacilities (traffic monitoring, telecommunications,tolling, and lighting) have resulted in the implementationof traffic engineering and equipment procurement being delayed beyond completion of the highway civil works. Preparation of the proposed project has specificallyemphasized the procurement, managementand operations of the tolled expresswaythat wouldbe constructed. The proposed project has also benefitedfrom advancepreparation of bidding documentationfor major civil works and other components and independentdesign reviews, which should help reduce delays during implementation.
1.30 Land acquisition and the resettlement of affected people has also led to implementationdifficulties, including delays and cost overruns, in Bank-financedhighway projects in China and other countries. The proposed project covers a densely populated and fast-growingcorridor and, typical of the southeasterncoastal area, a large number of people and properties would be affected by land acquisition and resettlement. Bank experience shows that the institutionalrequirements, includingassessment of resettlement impact, monitoring and reporting, are significant but often underestimatedby project authorities. The resettlementactivities under the proposed project take into consideration the previous lessons learned, and have addressed a wider range of issues, with greater attention to technical issues, than previous transport projects in China. Preparation has emphasized institutional capacity of resettlement agencies, strategies to restore living standards according to Resettlement Action Plans, assessment of resettlement requirements, funding (including provision for cost overruns), the adequacy of - 12 - compensationfor housingand other assets, the identification of employmentopportunities for affected people, and the establishmentof effectivemonitoring systems for resettlement activities.
1.31 The Bank has had considerable involvement with transport infrastructure projects in both Shanghaiand Zhejiang. A ShanghaiMetropolitan Transport Project was approvedby the Board in September1991, and a SecondShanghai Metropolitan Transport Project was approved by the Board in September 1993. The main infrastructure componentof both projects is the constructionof 27 km of the Inner Ring Road around the center of Shanghai; the projects also provide access via bridges to the new development area in Pudong. The implementation of projects in Shanghai has indicated strong capabilitiesin civil works design and construction,but relativelyweak institutionalcapacity affecting planning, design, and implementation,weak enforcement of traffic regulations (in part, due to difficulty in interagency cooperation), inefficient public transport operations, poor interagency cooperation, and lack of consideration of environmental impacts. The proposedproject would address several areas of weakness: first, the project includes an institutional strengthening,comprising training courses and additions to the equipment fleet that would improve capacity to plan, manage, and operate roads. The environmentalaspects of the project have been addressedjointly with the Bank throughout preparation, resulting in specificaction plans for the constructionand operationphases of the project that would be monitored throughout implementation; the procurement of environmentalequipment is also included in the project to improve Shanghai's capability for environmentaltesting and management.
1.32 A ZhejiangProvincial HighwayProject was approvedby the Board in May 1992; this project includes constructionof the Hangzhou-NingboExpressway that would adjoin the expressway in the proposed project. During the first two years of project implementation there were problems with expressway construction quality and the monitoring of resettlement activities. Measures were taken to strengthen staffing and improve internal quality controls, and the project is now rated as satisfactory. The construction quality problems resulted from the delegation of authority to lower level agenciesthat were unfamiliarwith contractingprocedures, supervision,and qualitycontrol, with negative impacts on construction quality, physical progress, and cost of the expressway. Bank experience in many other countries has demonstrated that poorly constructed roads lower economic benefits and vehicle operating cost savings, and may reduce reliability and accessibilityof the road. Higher costs may result from premature deterioration, requiring corrective actions in the form of increased maintenance and rehabilitation. The proposed project has taken these findings into consideration. The project would be supervised by a joint supervision team, comprising international and domesticexperts complementedby local staff; with terms of reference that ensure adequate numbers of technical staff and quality control procedures. The project would also include an important construction supervision training program to be held prior to the start of construction. Regular Bank supervision would focus on the importance of adequate organization, engineering,and quality control procedures.
1.33 Several of the most importantlessons learned in implementationof highway projects worldwide concern road maintenance. Bank policy papers in 1979 and 1988 - 13 - underscored the fact that neglect of road maintenancecan ultimately result in very high costs to restore infrastructure, and that new road constructionmust be balanced with the need for road maintenance. In previous Bank studies, the maintenanceof China's roads was consideredadequate. However, the rapidly expandingnetwork size and high rates of vehicle and traffic growth in China suggest that maintenancerequirements may accelerate in coming years. The Bank is currently reviewing the implementationexperience of Road Data Bank/PavementManagement Systems components that have been included in several previous highway projects. The proposed project has taken these issues into account, and would strengthenthe capacityfor maintenanceof Shanghaiand Zhejiangroads through the procurement of equipment needed for highway operationsand maintenance.
1.34 Based on the. Bank's experience with institutional and policy aspects of highway projects in China and elsewhere, the phasing of studies and technical assistance and the intensity of Bank supervision are key factors in sustainability of outcomes. Institutional components that are implementedearly in the project period tend to have a greater impact than free-standingstudies carried out in the advanced stages of a project. Bank experience also shows that road safety programs benefit from careful monitoringof safety conditions and the impact of interventions to improve safety. Institutional componentsfor road safety are most effectivewhen geared to the capabilitiesof the project agency, taking into consideration staff strength, technical capacity, and operating constraints, and the success of road safety programs depends on effective coordination between highway departments and traffic police. These lessons have been taken into considerationin designing the Road Safety Program in the proposed project. The Road Safety Program has been designed to pilot road safety-consciousengineering designs and strengthenroad safety practices. The scope of this componentis small-well-suited to the capacityof the municipalhighway authoritiesinvolved in day-to-dayimplementation. The civil works would be implementedin a manner to maximize the demonstrationeffect of the program and to allow for learning from implementationof each works package; regular monitoring and reporting is included to measure the impact of road safety interventions. The Road Safety Program would be implementedearly in overall project implementation,which would permit earlier review and adoption of the pilot findings. - 14 -
2. THE TRANSPORT SECTOR IN SHANGHAI AND ZHEJIANG1
A. SiTUATION AND ECONOMY
2.1 Shanghai Municipalityand Zhejiang Province are located on the coast of China in the vicinity of the Yangtze River Estuary. As of 1992, Shanghai Municipality had an area of 6,241 km2, representing 14 districts, 46 towns, and 23 counties. The total land area of Zhejiang Provinceis 101,800 km2, but 70 percent of this is mountainousand a further 10 percent is covered by lakes. The northeastregion of Zhejiang, characterized by plains, provides about 75 percent of the provincial economic output. Jiaxing Municipality,an area in northeasternZhejiang that has been selectedfor a road safetypilot program under this project, accountsfor 20 percent of area, 21 percent of population, and 33 percent of industrial and agricultural output in Zhejiang Province.
2.2 The project area is among the fastest growing economic regions in China: the economiesof Shanghaiand Zhejianghave grown by about 12 percent and 17 percent per year respectively since 1985. Gross Output Value of Agriculture and Industry (GOVAI)per capita in the project area was by 1992 well above the national average, in regions of Shanghairanging between3.1 and 4.9 times the average, and in Zhejiangat 1.6 times the average (Table 2.1).
B. TRANSPORTNETWORK
2.3 Both Shanghaiand Zhejiangpossess well-developed,multi-modal transport networks, heavily dominated by road and waterway transport, with a large number of vehicles relative to network length (Table 2.2).
2.4 Road Transport. Between 1981 and 1993, the road network in Shanghai expandedby over 1,500 km, with virtually all roads paved (Table 2.3). Key additions to the highway network includedthe 16 km Shanghai-JiadingExpressway in 1989 and the 20 km Xinzhuang-SongjiangExpressway in 1990, the first expresswaysin Shanghai.
2.5 The road network in ZhejiangProvince has expanded by more than 8,000 km between 1981 and 1993, and at the same time has been substantiallyupgraded (Table 2.3). The length of paved road has nearly tripled to about 7,100 km, 23 percent of the provincial highwaynetwork length. At the end of 1993, ZhejiangProvince had only 7 km
1/ Further information on the transport sectors in Shanghai and Zhejiang is available in Annex 1, and in Staff Appraisal Reports for the following projects: Second Shanghai Metropolitan Transport Project (No. 11985); Shanghai Port Restructuring and Development Project (No. 11120); Zhejiang Provincial Highway Project (No. 10335); Shanghai Metropolitan Transport Project (No. 8465); Ningbo and Shanghai Ports Project: Shanghai Port (No. 7257); and Three Ports Project (No. 3653). - 15 -
of expressways, no Class 1 highways and about 1,700 km of Class 2 highways. Most of the additional network length has taken the form of Class 4 roads. The administrative classificationof the road system in both provinces at the end of 1993 was as follows:
ShangzhaiMunicipality Zheiiang Province km % km %
National 185 5.1 1,837 5.7 Provincial 719 19.8 5,194 16.3 County 1,184 32.7 15,474 48.5 Village 1,407 38.8 8,630 27.0 Special 130 3.6 789 2.5 Total 3.625 100.0 31.924 100.0
2.6 Water Transport. Water transportationis well developedin Shanghai,with a large number of connectionsto foreign countries and to eleven provinces and numerous cities within China, including linkages to the Tai Lake system of Jiangsu, Zhejiang and Anhui, and the Jing-Huang Grand Canal. There are 224 city- and county-levelwaterway channels in the Shanghai Region. Typical cargos carried by deep sea transport include containers, and piece sundry goods, and on the Yangtze River, coal and petroleum, steel, building materials, and grain.
2.7 ShanghaiPort, with a capacityof one hundred milliontons, ranks fourth in the world in volume of freight handled. The physical location of the harbor at the intersection of river and sea permits trade with other main harbors as well as the middle and lower reaches of the YangtzeRiver; YangtzeRiver connectionscontribute 16 percent of the harbor's freight volume and 60 percent of its passenger volume.
2.8 ZhejiangProvince possesses a well-developedinland waterwaysystem, with total navigable length of 10,654 km as of 1993. Inland waterway transport is used extensivelyfor movementof coal, industrialproducts, and building materials. The major ports in Zhejiang Province include Hangzhou, Ningbo, Beilun, Wenzhou, Haimen and Zhoushan ports. Several ports are being developed for deep water berth potential, includingNingbo (BeilunDistrict) and Jiaxing Zhapu to relieve pressure at ShanghaiPort.
2.9 Rail Transport. The total rail network length in Greater Shanghai is 652 km. Specializedrail routes comprise 141 km. Passenger and freight transport services in the hub area of Shanghaiand the Shanghai-Nanjingand Shanghai-Hangzhoucorridors are administeredby Shanghai Railway Bureau. The length within this corridor is 104 km. The length of rail routes in Zhejiang Province is 847 km. The city of Hangzhou serves as an important junction, with rail service along the Shanghai-Hangzhouand Zhejiang Jiangxi lines. The transport capacity along the Shanghai-Hangzhou,Zhejiang-Jiangxi and - 16 -
Xiaoshan-Ningbolines are consideredat saturation, such that further expansion would be difficult. Rail transport is mainly used for coal, mineral oil, steel, industrial products, building materials, general merchandise,agricultural goods and side-lineproducts.
2.10 Air Transport. Air transport services in both Shanghai and Zhejiang Provinces are well developed and expanding. Shanghai is serviced by seven different domestic airline companies, includinginternational service from Hong Qiao International Airport. Air transport has also developedrapidly in Zhejiang Province. At present, 68 flights are available, with routes covering some 78,000 km. Main airports are located at Hangzhou, Ningbo, Wenzhou, Hangyan and Yiwu, with constructionof an international airport planned at Hangzhou.
C. TRAFFIC CHARACTERISTICSAND GROWTH
2.11 The trends in traffic in both Shanghai and Zhejiang Provinces reflect a growing importanceof highway and waterway transportation. In ShanghaiMunicipality, nearly all (96 percent) of freight turnover is currently transported on coastal and inland waterways, and about 70 percent of passenger tumover is transported by rail. Freight turnoveron waterwaysgrew by about 8 percent per year during the past decade, compared with 4 percent per year for highways and railways. For passenger traffic, turnover on highways grew more quickly than on other transport modes, at about 11 percent per year during the past decade, compared with 4 percent and 3 percent for railways and waterways, respectively(Table 2.4).
2.12 In Zhejiang Province, coastal and inland waterways currently transport the largest share of freight traffic, capturing40 percent of total traffic turnover comparedwith 29 percent for highways and 31 percent for railways. For passenger turnover, highways are the dominant mode of transport, carrying 68 percent of traffic as compared with 27 percent on railways and 4 percent on waterways. Highway turnover has grown more quickly than other modes during 1982-93, at 27 percent per year for freight traffic (comparedwith 3 percent for railwaysand 13 percent for waterways)and at 14 percent per year for passenger traffic (compared with 6 percent for railways and 1 percent for waterways) (Table 2.4).
2.13 Trends in the volume of traffic since the mid-1980sreflect the emergence of air transport and the expansion of road transport for both goods and passengers. In Shanghai,the volume of freightcarried by road remainedconstant between 1985 and 1993, while the volume of passenger traffic carried by road grew by 3 percent per year. The fastest growing mode during the period was air transport, for which both freight and passenger traffic volumesgrew at 21 percent per year (Table 2.5). The volume of freight traffic in Zhejiangbetween 1982 and 1992 reflects rapid expansionin road transportation. Freight and passenger volume carried by road grew by 23 percent and 9 percent per year, respectively. This growth was surpassedonly by air transport for passengers, which grew by 29 percent per year during the period (Table 2.6). In ZhejiangProvince the growing - 17 -
importance of road transport is evident: 70 percent of freight volume and 88 percent of passenger volume was carried by road in 1992 (Table 2.7).
2.14 Accompanyingthe growth in traffic has been a decline in the proportion of traffic handledby public carriers, with more transport services provided by enterprises or private operators in the highway and waterway subsectors. As indicated by freight traffic trends in Zhejiang, the volume of goods transported by enterprises and private operators has more than doubled since 1985 (Table 2.8). Developmentof China's trucking industry, for example, shows rapid expansion in the influence of own-account operators. The market share captured by own-accountoperators has grown at an annual average rate of 12 percent in the last six years, and by 1991 had reached 67 percent of all freight movement.2/
2.15 In the Shanghai-Hangzhoucorridor, traffic on major roads is growing at rates of up to 20 percent per year. The cities in the corridor are increasingly congested, especially in Shanghai, where traffic volume of the six roads entering the central city is already 8,000 to 10,000 vehicles per day. Interprovincial movements also contribute significantlyto traffic volumesand congestionin Shanghai. The mixed traffic volume on interprovincialhighways in Shanghai is nearly 5,000 vehicles per day, with volumes on the key Huyi and Huquingping Highways already exceeding this level. Based on data collectedbetween 1982 and 1992, the yearly average growth rate of traffic in border areas of Shanghai was over 20 percent, comprising 50-70 percent vehicles registered in other provinces.
D. THE VEHICLEFLEET
2.16 The vehicle fleets in both Shanghai and Zhejiang have expanded rapidly during the past decade. Total vehicle registrationsgrew by 15 percent and 19 percent per year between 1984 and 1993 in Shanghaiand Zhejiang, respectively. The fastest growing vehicle categories during this period have been, in Shanghai, special purpose vehicles (66 percentper year since 1991), cars and vans (23 percent), and tractors (22 percent), and in Zhejiang, motorcycles (42 percent), small and medium trucks (39 percent), cars and vans (31 percent). In both provinces, growth of nonmotorizedvehicles (a category that includes motorcycles) was 19 percent per year, exceeding growth of the motorized fleet (13 percent in Shanghai and 17 percent in Zhejiang) during the period (Table 2.9).
2.17 The compositionof the vehicle fleet varies significantly between the two provinces, with Zhejiang Province possessing a far greater proportion of small and non- motorizedvehicles. The predominantvehicle categories in Shanghaiare large trucks and cars and vans (33 percent and 31 percent, respectively). In Zhejiang, the largest vehicle categories are motorcyclesand tractors (40 percent and 29 percent, respectively) (Table 2.9).
2/ Based on the findings of a recent sector report, China: Strategies for Road Freight Development (No. 12600-CHA). - 18 -
2.18 The rapid increase in vehicle numbers is having a major impact on the ease and safety of traffic movementsin urban areas of the Shanghai-Hangzhoucorridor. In Hangzhou alone, 21,000 vehicles were added to the fleet in 1992, for total vehicles of 117,600, an increase of 18percent over the previous year. Non-motorizedtransport added another 1.12 million vehicles to the Hangzhouurban area. /
E. RoAD SAFETY
2.19 Road safety is a serious problem in Shanghai and Zhejiang Provinces, as elsewhere in China. Generally, the number of traffic accidentshas increased less rapidly than the growth in traffic volumeor vehicle registrations. In Zhejiang, while the absolute number of accidents and injuries has declined since 1987, as has the fatality rate per 10,000 vehicles, the proportion of fatalities has been increasing, suggesting more serious accidentswith higher frequency of death C(able 2.10). Along the Shanghai section of the current Shanghai-HangzhouHighway, the number of accidents, injuries and fatalities has grown steadily since 1986 (Table 2.11) with a large proportion of accidents in the area occurring on the existing Shanghai-HangzhouHighway (NR 320). Further despite recent declines, the fatality rates for both Shanghaiand Zhejiang,like those for China as a whole, remain higher than rates in many developedand developingcountries (para 1.15 and Table 1.2) .
2.20 While concernabout road safety is high, the CommunicationsDepartments in Shanghaiand Zhejiang have not had complete responsibilityfor road safety since the reassignmentof road safetyresponsibilities in 1988. Much of the responsibility for road safety activities now lies with the provincial Public Security Bureaus, including that for vehicle inspection, driver training, public education on safety, impositionof fines, driver licensing, enforcementof traffic laws, related traffic management,highway patrols and all aspects of accident control, reporting, and investigation/researchon accidents.
2.21 However, China's provincial communications departments retain responsibility for all matters concerning highway design. Typical activities handled directly by the Shanghaiand Zhejiangcommunications departments include: strengthening the general inspectionand examinationsystems for pavements,embankments, bridges, and culverts; keeping the highway in complete, level and unblocked condition; improved visibility of traffic markings; prompt repair of damaged road sections; regular maintenanceof roads; gradual improvementof technical (engineering)aspects that can improve road safety; and improvingemergency services.
2.22 In practice, many important interventions for road safety must be handled by local highway managementdepartments in conjunctionwith local traffic police. These include early identificationof damaged roads or dangerous road conditions (for example, roads withinsufficient bearing capacity), measuresfor deceleratedtraffic, one-waydriving,
3/ The influence of non-motorized traffic is significant. However, since most non-motorized vehicles are not registered, information on the total numbers of non-motorized vehicles is not available. - 19 -
load limited driving, highway closings, and prioritization of maintenance and reconstructionworks in key areas. Red safetywarning signalswould be used at night and combinedwith constructionmarkings where highway maintenanceand constructioneffect the passing of vehicles. Specific measures to improve road safety are also envisioned, includingreconstruction of narrow or low tonnagebridges and improvementof alignment (class) of highways, and separation of motorized from nonmotorized traffic. A pilot program for road safety has been included in the proposed project to further the use of these measures (paras 3.26-3.30).
F. HIGHWAY DEVELOPMENT
2.23 Expansion of Road Networks in Shanghai and Zhejiang. By the year 2000, the total length of road network in ShanghaiMunicipality is projected to increase to over 4,300 km, an 18 percent increase over the length in 1993. The total length of expressways is expected to triple from a mere 40 km in 1993 to more than 120 km by 2000. The compositionof the network would also change, with expressways and Class I highway representing an increasedproportion of total network length (Table 2.12). In Zhejiang Province, total road network length is expectedto reach 37,300 km by the year 2000, a 10 percent expansion over the 1995 length. The length of expressways would increase fivefold between 1995 and 2000. The proportion of roads classified as Class 2 and above is also projected to increase by the year 2000 (Tables 2.13 and 2.14).
2.24 Shanghai Municipality. Planningfor developmentof the highwaynetwork is a sectoral component of the municipal master plan, coordinated by the Shanghai Municipal Engineering Administration Bureau (SMEAB) and the Shanghai Municipal Planning Bureau in accordance with MOC's plan. Plans for highway constructionare made for a five-year period and for the year 2000. The 1986-2000investment program comprises the constructionof 523 km of high-grade highways with total cost of Y 247 billion (Table 2.15).
2.25 The major roads providingaccess to ShanghaiMunicipality include the Inner Ring Road in the central city, the Outer Ring Highwayon the fringe of Shanghai, and the Suburban Ring Highway, which together provide a high-speedring road system linking 9 counties and 1 district. The municipaldevelopment plan includes additionalconstruction or expansionof radiating state and trunk (expressway)roads between the Inner and Outer Ring highways. The Outer Ring Highway will eventually form a major, 97 km expressway (50 km in Pudong area and 47 km in Shanghai)with 100 m width, including a main carriageway with 4 lanes in each direction. Once complete, this road alone will provide critical links to 7 districts and 1 county in Shanghai.
2.26 Several national trunk highway segmentsare also included in the Shanghai highway development program. In addition to the benefits for regional and national economic integration, development of these segments has provided a high-speed link between remote and central districts of the Municipality. During the 7FYP, two such links were constructed, the Shanghai-JiadingExpressway and the Xinzhuang-Songjiang - 20 -
Expressway, providing connectionswith two satellite counties. The major roads to be connectedwith the proposedShanghai-Hangzhou Expressway are the Outer Ring Highway, the Tongjiang-SanyaNational Road (part of Suburban Ring Highway), NR 320, Maoxin Highway, and Xinche (Class II) Highway. The Shanghai-NanjingExpressway (under construction)and the proposed Shanghai-HangzhouExpressway are situatedalong two of the twelve NTHS routes in China. The interprovincial highways bounded by Jiangsu Province are Shanghai-TaichangHighway (artery), Shanghai-YexingHighway (NR 204); Chaoe-An Highway (NR 312), Shanghai-Zinpu Highway (NR 318); and the newly constructed Shanghai-JiadingExpressway that will be extended to Jiangsu Province. The interprovincialhighways bounded by Zhejiang Province are Xinjiang-FenjiangHighway (NR 320) and Shanghai-HangzhouHighway (artery). These roads connect to the Pudong New Area and are linked by access to the Nanpu Bridge, YangpuBridge, East Yanan Road Tunnel, and Dapu Road Tunnel.
2.27 Zhejiang Province. Zhejiang Province has planned a program of major road investments comprising the construction of over 1,000 km of expressways to be completedbetween 1994 and 2002 and with an estimated total cost of Y 21 billion (Table 2.16).
2.28 The shortageof high-speedprovincial or national roads has several national highways pass through Hangzhou City, creating a transit point for traffic from the neighboringprovinces of Shanghai, Jiangsu, Anhui, Jiangxi and Fujian. In recent years, the urban districts of Hangzhouhave become congested with long-distancetraffic, placing more pressure on the strained intracity traffic. Improvement of transport access to Hangzhouis a provincial priority that will also support the region's vital tourism industry and economic developmentalong the Qiantang River. Eleven key investment projects related to developmentof road, harbor, and passenger (bus) services have been identified in Hangzhou, with total required investment of Y 2.1 billion (Table 2.17). Other investmentpriorities include the upgradingof a 1.9 km section of the Xianfuqiaosection of NR 104 as a north exit for Hangzhou City and the improvement of roads providing access to the Hangzhouairport.
2.29 The Shanghai-Hangzhoucorridor in Zhejiang has also been identified for major investment. The two main roads connectingShanghai and Hangzhou, NR 320 and ProvincialRoad 01, connect6 countiesand cities in Zhejiang. Based on origin/destination surveys and projections of corridor traffic, by the year 2015, the traffic on NR 320 will reach 47,500 to 53,000 vehiclesper day and the traffic on Provincial Road 01 could range from 5,600 to 12,000 vehicles per day. Jiaxing Municipality, which occupies a central position in the corridor, will be the site of several investments to increase corridor capacity. In 1989, the Hangzhou-Fengjingsection of NR 320 was upgraded and the alignment moved to the northern outskirts of Jiaxing to relieve intra-city congestion. Constructionof the Shanghai-HangzhouExpressway would further relieve pressureson city traffic: (i) the Shibaliqiaoexit of the new expresswaywould be situated 12 km away from downtown Jiaxing; (ii) Class II access roads in Wangdian and Shibaliqiao would be reconstructed or upgraded; (iii) the Zhapu-WangjiangjingClass III highway would be - 21 -
upgraded to Class I or Class II;4/ and (iv) the Jiaxing-Wanjiangjing Class I Highway would be rebuilt.
2.30 Projected Highway Sector Financing. In Shanghai Municipality, revenues and expenditures in the highway sector are projected to increase at 12 percent and 5 percent per year respectivelyduring the 9FYP. Total revenues during the 9FYP would increase by 78 percent over the 8FYP level. The projected budget indicates a funding surplus during the 9FYP, attributableto very strong growth in revenues. The most rapidly growing revenue category would be passenger tax revenues, with a fourfold increase between the 8FYP and the 9FYP. Road maintenancefee revenue is expected to increase at about 11 percent per year during the 9FYP. Funds raised through bonds, loans, and foreign capital transactionsare projected at about Y 1.9 billion during the 9FYP, up from Y 1.3 billion during the 8FYP. Total expendituresin the highwaysector during the 9FYP are estimated at Y 9.7 billion, compared to Y 7.8 billion during the 8FYP. Road constructionconstitutes 76 percent of expendituresand would total Y 7.4 billion in 9FYP. The fastest growing item of expenditure, apart from loan interest and amortization payments, is routine maintenance,which would increaseat 10 percent per year. However, periodic maintenanceexpenditures would be sustainedroughly at the level of expenditure during the 8FYP (Table 2.18).
2.31 In Zhejiang Province, the highway sector budget for the 9FYP also shows a surplus of funds. Total revenues during 9FYP would be Y 9.7 billion, a 54 percent increase over the 8FYP level. Road maintenancefee revenues, accounting for over two thirds of the revenues, are projected to increase at 9 percent per year. Other major items of revenue, comprising subsidiesor transfers from the fund for high-class highways, are projected to increase at more than 10 percent per year. Total expenditures during the 9FYP are projected to total Y 8.9 billion, an increase of 35 percent over the 8FYP level. Construction would comprise 75 percent of total expenditures, with expressway construction the fastest growing expenditure item. Routine and periodic maintenance expenditureswould both increase by 66 percent over the 8FYP level (Table 2.19).
4/ The rehabilitationof Class II road sectionsin Pinhu City and of 6 km of Class II highwayin Jiaxing Municipalityhave already been completed. - 22 -
3. THE PROJECT
A. ORIGIN AND FORMULATION
3.1 The need for a high-speedhighway link in the Shanghai-Hangzhoucorridor was identifiedduring Bank sector work on transport needs in the Yangtze River delta, the Yangtze Economic Zone Transport Study (YEZTS). The resulting report recommended priority areas for transportinvestment, including a network of expresswayslinking the key regional cities of Shanghai, Nanjing, Hangzhou, and Ningbo. Since completion of YEZTS, highway traffic growth in the region has acceleratedrapidly and the capacity of existing facilities is being reached sooner than expected, lending urgency to the recommendedhighway expansionprogram. I/
3.2 The main infrastructurecomponent in the project involves constructionof the 130-kmShanghai-Hangzhou Expressway to completea continuous,295-km expressway connectionbetween Shanghaiand Ningbo, linking the most economicallydeveloped areas of Zhejiang Province with the major regional port, commerceand communicationscenter of Shanghai.2/ The Shanghai-HangzhouExpressway would also provide linkages to the Inner Ring Road and proposed Outer Ring Road in Shanghai, and would form a segment of the Tongjiang-Haikoucoastal highway, planned to connect Heilongjiang Province in northeasternChina with Hainan Island in the extreme south. This coastal route is one of the 12 strategic, highest priority NTHS routes identified by MOC for major new constructionand systematicupgrading (para 1.18). The Bank is financingother segments of the coastal route in Guangdong,Jiangsu, Fujian, and Zhejiang (the Hangzhou-Ningbo Expressway).
3.3 It was agreed at an early stage of project preparationthat, in addition to the expressway component,the project would include a pilot program for improvementsto road safety in a segmentof the Shanghai-Hangzhoucorridor where traffic growth is rapid and accidentrates are high.
1/ The Bank collaborated with the State Planning Commission in undertaking the YEZTS, a comprehensive study of transport in the region comprising Shanghai Municipality and Jiangsu, Zhejiang and Anhui Provinces. This region contained 180 million people in 1990 and generated approximately 25 percent of China's Gross Output Value of Agriculture and Industry (GOVAI).
2/ Segments of this route from Xinzhuang to Songjiang (completed and open to traffic) and from Hangzhou to Ningbo (to be opened by 1997) have been developed separately. - 23 -
3.4 The proposed project was prepared under the direction of the Shanghai Municipal Engineering Administration Bureau (SMEAB) and the Zhejiang Provincial CommunicationsDepartment (ZPCD), with guidance from State Planning Commission (SPC), MOC, and Ministry of Finance (MOF). The Bank's project identificationmission visited Shanghaiand Zhejiangin November 1992, with subsequentBank missionsworking closely with central governmentand provincial authorities to formulate the project scope.
B. OBJECTIVES AND RATIONALE FOR BANK INvoLvEMENT
3.5 The proposed project has the following specific objectives:
(a) to increase highwaycapacity in the Shanghai-Hangzhoucorridor in order to relieve existing congestionand promote economic development;
(b) to improve road safety in northern Zhejiang; and
(c) to develophighway sector institutionalcapability in Shanghaiand Zhejiang.
3.6 Rationale for Bank Involvement. The main component of the government's strategy for the sector is the developmentof a National Trunk Highway System (NTHS), comprising 12 major interprovincialhighways for the exclusive use of motor vehicles; these routes would connect all provincial capitals and major cities (cities with population exceeding 500,000). The construction of 25,000 km of high-standard, access-controlledhighways for the NTHS has been accordedthe highest investmentpriority by central government. This scope of constructionrepresents a tremendouschallenge: as of 1991, only 500 km of the system had been built, with an additional 4,000 km to be added during the Eighth Five Year Plan (1991-1995). The Bank Group is assistingChina's highway sector by financing the constructionof critical links of the NTHS as well as provincialroad networks, by emphasizingpolicy and institutionalreform in project-specific investmentcomponents, studies, and technical assistance, and through sector work.
3.7 The proposed project is consistent with the Country Assistance Strategy discussed at the Board on June 1, 1995 and addresses one of the Bank's key objectives, to help alleviate infrastructure bottlenecks. The Shanghai-Hangzhoucorridor that is the focus of this project is experiencingrapid economic growth: this factor, combined with the density of population and increasing motorization,is reflected in traffic growth rates of up to 20% per year and increasingly serious congestion.
3.8 The Shanghai-HangzhouExpressway to be constructed under the project forms an important segment of the coastal route of China's NTHS, which will ultimately link HeilongjiangProvince in the extreme northeastof Chinawith Hainan Island at China's southernmostpoint. Completion of this route is an immediate priority of the central government and the concerned Provincial governments. The Bank is financing or has financed sections of this coastal route in other eastern provinces of China, including Guangdong, Fujian, Jiangsu and Zhejiang. The Shanghai-HangzhouExpressway would - 24 - provide high-speedlinkages with other key expressways,including the ShanghaiInner Ring Road and the Hangzhou-NingboExpressway (both being constructedwith Bankassistance), to form a continuous, 295-km expressway link between Shanghai and Ningbo. The Shanghai-Hangzhouexpressway, once completed,would link the most rapidly developing areas of Zhejiang with the major trade and communicationscenter of Shanghai.
3.9 Development of the Shanghai-HangzhouExpressway, a bi-provincial highway, has also afforded opportunitiesfor the Bank to help alleviate constraints in the movement of passengers and goods across administrative boundaries and to promote regional trade. The Bank's involvementin the project is helping to improve coordination and cooperationbetween the provincesof Shanghaiand Zhejiang, with lessons that will be relevant for future Bank projects in China and more generally, for links of China's NTHS that will involve the coordinationacross a large number of provinces.
3.10 Bank participationin this project has been beneficial to the highway and planning agencies in Shanghaiand Zhejiangby fostering the adoption of more up-to-date technical and project management practices, including the use of design reviews, contracting, and constructionsupervision. Because of the dense human settlementsalong the project route, intensivepreparation of resettlementcomponents has been critical for the formulationof strategiesand action plans for incomerestoration of project-affectedpeople. The Bank has made a significant contribution to preparation of and planning for the resettlementcomponent by providingtechnical expertise for the assessmentof resettlement impacts and formulationof ResettlementAction Plans (RAPs), and by providing guidance on how to meet the institutionalrequirements for implementationof resettlement,including the monitoringof resettlementimpacts.
3.11 The project's pilot program for road safety (the Road Safety Program) also supports the Bank's strategy for participationin China's highway sector. The magnitude of the road safetyproblem in China is receivingincreasing attention as vehicle ownership levels and traffic continue to grow at unprecedented rates, and as a high-speed road network is developed, factors that could contribute to the already serious road safety problem. Appropriate interventionsand solutions for improved road safety in corridors such as those in the proposedproject, characterizedby a high volume of mixed traffic with a significant proportion of bicycle traffic, are still being identified and are of central concern both to the Chinese government and to the Bank. Through participation in the formulationof the Road SafetyProgram, the Bank has provided critical technicalexpertise to help identify potential solutions, includingroad safety-consciousdesigns that would be used to upgrade selected roads in the pilot and a program for strengtheningroad safety technical capacity in provincial highway agencies. The Bank's continued involvement during supervision would provide opportunities to give more technical advice on road safety and to disseminatelessons of the pilot to other provinces in China. - 25 -
C. PROJECTDESCRIPION
3.12 The project comprises the following components: 3/
(a) constructionof the Shanghai-HangzhouExpressway, a 130 km divided four- lane access-controlled highway, including service facilities and the supply and installation of electrical, electronic and mechanical (E&M) equipment for tolling, traffic monitoring, telecommunication and lighting, and the upgrading and construction of 56 km of crossroads at interchange locations in Zhejiang Province to improve access to the new expressway ($605.5 million);
(b) construction supervision of the Shanghai-Hangzhou' Expressway ($16.6 million);
(c) the Road Safety Program, a pilot program in northern Zhejiang to improve safety on highways in the Shanghai-Hangzhou corridor after opening of the new expressway, including
(i) the upgrading of 86 km of National Route (NR) 320 road sections and structures in Jiaxing Municipality, including construction supervision ($26.3 million) and
(ii) technical assistance, training, and equipment to support the institutional aspects of the Road Safety Program ($0.8 million); and
(d) institutional strengthening of highway agencies in Shanghai and Zhejiang, comprising
(i) a staff training program covering highway planning, management, design, construction, and maintenance ($2.5 million) and
(ii) strengthening of technical capacity through the addition of equipment for
a. central laboratories, environmental management, and research for the Shanghai-Hangzhou Expressway ($3.9 million) and
b. operation and maintenance of the Shanghai-Hangzhou Expressway and maintenance of the provincial and county road networks ($14.9 million).
3.13 The section of the Shanghai-Hangzhou Expressway ("the Expressway") proposed for financing under the project totals 130 km, linking Songjiang in Shanghai to
3/ Cost figures are estimated and include physical and price contingencies, taxes and duties. - 26 -
Pengbu in Hangzhou. The 28 km section to be constructedin Shanghaiextends an already completed 20 km section of the Expressway between Xinzhuang and Songjiang. The terminalpoint of the expresswayin Xinzhuangis about 25 km or 40 minutes' driving time from People's Square in central Shanghai. The 102 km section to be constructed in Zhejiangwould link at Pengbu with the 145 km Hangzhou-NingboExpressway now under construction(para 3.2).
3.14 The Expressway would pass through a densely settled corridor that is now experiencing very rapid economic growth. The corridor is currently served by two highways: NR 320, which is the principal and most direct route between Shanghai and Hangzhou; and Provincial Route 1, which takes a more circuitous route along the shore of HangzhouBay. The comparativedistances between Songjiang and Pengbu are 130 km by the proposed expressway, 165 km via NR 320, and 174 km via Provincial Route 1. The new expressway would reduce travel times between the celters of Shanghai and Hangzhou to about three hours, compared with the current railway travel time of four to five hours, and the current driving times of 5-6 hours via NR 320 and 7-8 hours via Provincial Road 01.
3.15 Construction of the Expressway. A feasibility study carried out by SMEAB and ZPCD analyzed three alternative routes for the Expressway: the shortest route was selectedand engineeringdesign has been completed. The design was undertaken by SMEABand ZPCD with assistancein traffic engineeringby the Highway Science and Research Institute of MOC and the Shanghai Railway University. As a major, interprovinciallink in the nationalhighway system,agreement between relevant central and provincial government agencies and the Bank on project scope and formulation is considered critical for successfulimplementation. Review of the Expressway component by the MOC, SPC, and the State Council has been completed and approvals of the technical aspects, cost, and financingplan have been obtained.
3.16 The expresswaydesign includes 17 major bridges, 94 medium-sizebridges, 22 smallbridges, 27 crossroad grade separations, and 122 farm access passageways. The final engineeringdesign and technical specificationswere reviewed by Bank staff with the assistance of consultantsfinanced under the Netherlands Consultant Trust Fund. It has been agreed that project-designatedroad safety design guidelines be incorporated into works on access roads under the project. The designs of Expresswayinterchanges were also modified during preparatory missions following review by the Bank's road safety specialist. The designincorporates principal recommendations resulting from these reviews and is satisfactory.
3.17 The Expresswaywould be constructedto a four-lane standardas designated in the national geometric standards for expressways(Table 3.1) with provision for later expansion to six-lane standard. This added capacity is expected to be needed around the year 2010 based on recent traffic growth rates of about 20 percent per year. In Shanghai, the highway will be constructedwith a wide central median for future additionallanes, and embankmentsand structures for six lanes will be built during initial construction. In Zhejiang, expansion to six lanes will be accomplishedby adding lanes to the outside of the carriageway in the future. Two major bridges and all interchanges in Zhejiang will be - 27 - constructed to provide the final six-lane configuration, but the initial embankments in Zhejiang will provide for a four-lane configurationonly.
3.18 Connection to the existing road network would be provided at eight intermediate interchanges, in addition to the two termini of Pengbu and Songjiang. In Shanghai, direct connection would be provided to the Shanghai Orbital Road and the Shanghai Outer Ring Road (at Xinzhuang) and, via another high-grade link, to the ShanghaiInner Ring Road; these connectingroads in Shanghaiare at an advancedstate of planning or construction, the latter under Bank financing. The Zhejiang expressway section also includes upgrading or construction of 56 km of crossroads at interchange locations to Class 2 standards(Table 3.1), simultaneouslywith constructionof expressway interchanges. Zhejiang Province plans to upgrade other key roads in the corridor concurrently with constructionof the Expressway.
3.19 The Expresswaywould traverse geologicallydifficult terrain with extensive soft, highly compressible, soils over about 38 km of its length. The major expressway contracts in Shanghaiinclude a 2.2-km soft soil test section, involving the implementation of mixed treatment remedies in about 20 sites along the approaches to bridges and pre- loading of embankment. Experiencein constructingthe adjacentXinzhuang-Songjiang and Hangzhou-Ningbo Expressway sections provides further reference for identifying appropriate measures to mitigate the extent of consolidation.
3.20 The Expressway design includes only one access to Hangzhou via the Pengbu interchange, and it is possible that traffic growth might overload the proposed interchangedesign. However, the Wengmeiinterchange, located 12.7 km to the north of Pengbu, would provide access to a new distributorroad planned to open in 1997 and with links to the Hangzhou Ring Road. Additionalaccess to Hangzhou could be provided at two intermediate points between Pengbu and Wengmei at a later date if necessary. Zhejiang has begun constructionof the Pengbu-Wengmeisection, with associated access roads, in order for through traffic between the project corridor and the Hangzhou-Ningbo Expressway (now in constructionunder the Bank-financedZhejiang Provincial Highway Project) to bypass Hangzhou City; this section could be opened about three years prior to opening the main expressway and would provide substantialimmediate benefits.
3.21 Construction of the Expressway also includes ancillary works in the Shanghaisection, comprisingpumps, approach roads, underpasses,fly-overs and bridges, service area and administrativefacilities, redirection of water channels, and landscaping. These ancillary works would be completedwithout Bank financing, but are considered an integral part of the expresswayproject. Progress of the ancillaryworks would be reviewed by the Bank on a regular basis during implementation(para 3.79).
3.22 The Expressway would be operated as a toll facility. In addition to civil works, the project covers the cost of electrical, electronic and mechanical installations required for toll collection, traffic monitoring, telecommunicationsand lighting of major bridges and interchanges. The technicaland managerialaspects of this interprovincialtoll road are of particular concern to the Chinese government and to the Bank. As both Shanghai and Zhejiang have limited experience in the constructionand managementof - 28 - major toll roads, the Bank advocates early planning and preparation of E&M works and expresswayoperations. An agreementwas reachedduring negotiationsthat by December 31, 1995, the Shanghai Shanghai-HangzhouExpressway Engineering Construction Executive Commission and the Zhejiang Provincial Expressway Project Executive Commission will jointly prepare, discuss with Municipal, Provincial, and Central governments and submit to the Bank a coordinatedproposal, addressing, inter alia, a description of toll operations, toll setting arrangements, and measures to facilitate the movement of traffic across the Shanghai-Zhejiangborder. An understandingwas reached that, during the project's mid-term review (by the end of 1997), the progress made in interprovincial traffic facilitation, toll setting, preparation of recommendationsfor toll levels, and plans for expresswayoperation would be discussed with the Bank. Agreement was reached that the ShanghaiShanghai-Hangzhou Expressway Engineering Construction Executive Commission and the Zhejiang Provincial Expresswpy Project Executive Commissionwill prepare recommendationsfor appropriatetoll lev4lsand will confirm the organizational arrangements for the Shanghai-Hangzhou Expressway, taking into consideration the recent experience of toll roads in China; this information will be submittedfor Bank review by December 31, 1998.
3.23 Supervision of Expressway Construction. Although independent supervisionof constructioncontracts is gaining acceptancein China, local staff still have limited experiencein supervisingmajor highwayworks, particularly those awarded under InternationalCompetitive Bidding (ICB). Based on experience gained from the ongoing ZhejiangProvincial Highway Project and other Bank-financedhighway projects in China, a Joint Supervision Team (JST) would be formed for the Expressway works in both Shanghaiand Zhejiang. The JST would comprisepersonnel from ShanghaiMunicipality (SM) and Zhejiang Province (ZP), together with technicians from other provincial institutions and international consultants. In addition, both SM and ZP would recruit experiencedconstruction supervision personnel from establishedconstruction supervision companiesto supplementexisting staff. The JST would be responsible for ensuring that Expressway construction works were carried out in full compliance with technical specifications,and that strict qualitycontrols were exercisedon site. Understandingswere reached during negotiations with SM and ZP regarding a schedule for retaining the internationalconstruction supervision consultants, the completionof a supervisiontraining program prior to the start of construction,and the arrival of the supervisionconsultants on site before the start of construction. As a condition of loan effectiveness, SM and ZP would each enter into a legally-binding agreement with international construc.ion supervision consultants for supervision of construction of the Shanghai-Hangzhou Expressway.
3.24 During negotiations, understandings were reached confirming the organizational and staffing arrangements for expressway construction supervision as formulatedduring appraisal. A single firm of internationalconsulting engineers would be contractedfor the JST, and the internationalsupervising engineers would be integratedinto the organization with operational responsibilities. Furthermore, the international consultantswould help establish proceduresat all levels of supervision,including on-site inspectionand laboratory testing and supervisionof mitigatingmeasures identified in the environmental assessment. A total of 186 person-months of international consultant - 29 -
participationin the JSTs is proposedto be divided as follows: 144 person-monthsby three engineers for civil works supervision;21 person-monthsby one expert for supervision of E&M works; 9 person-monthsfor supervision staff training in China and abroad; and 12 person-monthsas a contingencyprovision. Agreementswere reached during negotiations from SM and ZP that supervision teams with qualified staff in adequate numbers will be maintainedto ensure that works are carriedout in accordancewith technicalspecifications and that strict quality controls are exercised on site.
3.25 A training programin constructionsupervision to be completedprior to the mobilizationof contractors has been establishedfor all local staff supervisingconstruction of the expressway. All construction supervision training would be conducted by the internationalconstruction supervision consultants. The first phase of the training program, prior to the beginning of construction, would include lecture courses and site visits. The second phase comprises on-the-jobtraining that would take place during constructionof the expressway. The timing and location of the training sessions would be coordinated between Shanghai and Zhejiangin order to maximizeexposure for the participating staff. Understandingsconcerning the scope and duration of this training were reached with SM and ZP during negotiations.
3.26 Road Safety Program. The Road SafetyProgram (RSP) is a pilot program constructed around observed characteristicsof the traffic and infrastructure in a specific section of the project corridor. The resources of the RSP would be focussed in Jiaxing Municipalityof Zhejiang Province; Shanghai would have no involvement in the RSP. Greater Jiaxing was selected for the pilot program because it occupies a central position, is in a heavily trafficked area, and containsa large share of the existingroad length. The RSP primarily focuses on improvementsto highwayinfrastructure to promote road safety, but would also cover the provision of equipment, training, and technical assistance for institutionaldevelopment. During negotiations,an understandingwas reached that the civil works, training, technical assistance,and procurementof equipment for the Road Safety Program have been approved by the ZhejiangProvincial Government and are part of the Provincial investmentplan.
3.27 The interactionof fast-and slow-movingmotorized vehicles, slow motorized and non-motorizedvehicles, and the interaction of pedestrians with vehicles in Jiaxing contribute to a high level of accidents. One of the main emphases of the pilot program, the segregationof vehicle types, could in the Chinese context contribute to a reduction in accidents and an increase in capacity. The two key infrastructure improvements for improving road safety under the RSP pilot are: (a) segregation of motor vehicle traffic from bicycles and agricultural tractors; and (b) improvementof road junctions to ensure that minor road traffic can turn safely into and out of the main road.
3.28 Zhejiang authorities have proposed improvementsto nine sections (86 km) of NR 320, the main highway passing through the Shanghai-Hangzhoucorridor (para. 3.12), where 60 percent of all road accidentsin Jiaxing Municipalityoccur. In 1992, over 2,700 road accidents occurredin Jiaxing, including268 fatalities and 357 serious injuries. The number of accidents has increased five hundred percent during the last 10 years. Works under the RSP include the provisionof separate "slow vehicle" lanes on both sides, - 30 - the rebuilding of 2 bridges, the wideningof an additional80 bridges and/or culverts, and the improvementof 37 junctions with provincial or county roads and 140 junctions with agriculturaltractor roads. Zhejiangplans to use its own resources to upgrade an additional 9 large bridges to improve road safetyin the Jiaxing area. The proposals for RSP works, reviewed in detail during appraisal, are supportedby sketch plans showing typical cross- sections and junction improvements. Road safety issues and the proposed RSP are discussed in greater detail in Annex 2.
3.29 Constructionof the sections would be supervisedby the transport bureaus at the county and municipal levels, under the overall supervision of ZPHAB, and by locally-recruited construction supervision consultants. While this arrangement would provide the staff strength required for supervision of works, their laboratory testing facilities would need strengtheningby the addition of laboratory.equipment purchased under the project.
3.30 Works on the nine road sectionsincluded in the RSP would be implemented in a manner to minimize disruption of traffic on the already congested NR 320 and to maximizethe benefit of a pilot approach. The RSP sections have been prepared based on analyses of local road safety conditions,economic evaluation, engineering design, bidding documents, environmentalassessment and/or environmentalaction plans, and resettlement action plans. The economic evaluations, environmentalassessment and action plan, and a resettlement action plan covering all sections under the RSP have been completed and are satisfactory to the Bank. During negotiations,agreements were reached that, prior to commencing upgradingon any RSP section, the Bank will receive and approve: (a) a detailed description of the design and technical aspects of the package, that must meet engineering design standards acceptable to the Bank; (b) a description of construction supervision arrangementsfor the package; (c) layoutplans for all junction types in the package; and (d) a report containingan assessmentof the likely impact of the works on road safety. The receipt and approval of this informationis a conditionof disbursement.
3.31 RSP Technical Assistance. Details of an RSP technical assistance and training package was included in Annex 2. The technical assistance and training is designed to provide long-termbenefits to the corridor by changing the methodologyused to devise accident remedial measures. The current system is weak both in causal identificationand in the design of remedial measures. Project technical assistance and training would help address these areas through: (a) basic accident information and analysis; (b) provision of a Road Safety Manual and Safety Audit System; and (c) specializedtraining. The adoptionof monitoringand reporting systems to measurethe impact of the proposed road safety interventionsis a critical next step. Agreements were reachedfrom ZP at negotiationsthat monitoringfor the pilot subprojects will be carried out quarterly, in a manner agreed with the Bank, and that monitoring reports will be submitted to the Bank for review.
3.32 Staff Training. In addition to the training of local staff in construction supervision, a series of training programs would be conducted in transport and highway engineeringand related areas. According to the nature of the training, the courses would be provided either in China, by local institutions,or abroad, through training institutions of national or state road authorities,and in some cases, by consultants. The main training - 31 - courses for provincialtransport/highway personnel cover: highwayplanning, traffic survey and analysis, financial managementof highway projects, project planning and feasibility studies, elements of project design (geometry, pavement, soft soil treatment, project cost estimates), project implementationand supervision (contracting, quality control), and highway operation, maintenanceand managementsystems. The main training programs, shown in detail in Tables 3.2 and 3.3, will train about 221 staff for about 265 person- months. At negotiations,the trainingprograms were confirmedand assurances obtained that all trainingprograms under the project will be carried out under terms of reference (TOR) and in a manner satisfactoryto the Bank and that, by September 30 of each year beginning in 1996, detailedproposals for all training under the project to be conducted during the next two calendaryears will be submittedfor Bank approval.
3.33 Provision of Equipment for Institutional Strengthening. Equipment would be suppliedunder the project to assist constructionsupervisionb research, operation and maintenance of the expressway and other principal roads and for the road safety program. The main equipmentneeds are:
(a) laboratory equipment to support construction supervision activities, particularly for soils and asphalt pavement;
(b) instrumentsto assist in research related to soft-soiltreatment and pavement and bridge design;
(c) instruments to monitor environmental aspects during construction and subsequentoperation of the expressway, as stipulatedin the Environmental Action Plan (EAP);
(d) vehicles and other equipment for the operation and maintenance of the project after opening, includingemergency equipment; and
(e) for the Road Safety Program, two microcomputerswith copies in English and Chinese of the Microcomputer Accident Analysis Package (MAAP) developed by the UK Transport and Road Research Laboratory (TRRL).
A list of equipment for (a) through (d) above was confirmed at negotiations(Tables 3.4, 3.5 and 3.6, with a summary of project equipment cost in Table 3.7).
D. STATUS OF PROJECT PREPARATION
3.34 Preparation of the proposed project is well-advanced,with implementation of the major civil works component scheduledto begin in September 1995. The project sustainednumerous delays during preparation: the complexityof this major, bi-provincial project resulted in a complex and lengthy government approval process; the ongoing ZhejiangProvincial Highway Project experiencedimplementation difficulties in mid-1994, and the Bank required remedial actions before processing of the proposed project could proceed; and Shanghaiand Zhejiang were required to do additional preparatory work on the resettlement aspects for all components. - 32 -
3.35 The most advanced activities of the project include: construction of an initial section of the expressway in Zhejiang that began in February 1994; a soft soil test section, part of the expressway works in Shanghai, scheduled to begin in August 1995; the resettlement for the Zhejiang expressway section and for the Road Safety Program has been completed; and the resettlement for the Shanghai expressway section is scheduled to begin in late July 1995. All resettlement activities are being carried out according to Resettlement Action Plans (RAPs) found acceptable to the Bank. Contracts for expressway construction have been or will soon be awarded with contractors expected to mobilize by September 1995. The selection of consultants to supervise construction of the expressway and to conduct training in construction supervision prior to the beginning of construction will be completed by the end of July 1995, to allow adequate time for construction supervision training prior to commencement of construction. To facilitate current road maintenance operations, the Shanghai-Highway Management Department is procuring in advance certain equipment from the agreed equipment list for Shanghai (Table 3.4). These items of equipment will remain as part of the project but will not be financed by the Bank.
E. ENVIRONMENTALASSESSMENT
3.36 Shanghai-Hangzhou Expressway. Environmental Assessments (EAs) were carried out for the Shanghai and Zhejiang sections of the project expressway by the Shanghai Academy of Environmental Sciences (SAES) and the Zhejiang Provincial Research Institute of Environmental Protection (ZPRIEP), respectively. The EAs identified social disruption, noise, air pollution, water pollution, soil erosion, effects on irrigation systems, etc., as major potential impacts. Based on the EA findings and subsequentto discussionsbetween representatives of SM, ZP and the Bank, Environmental Action Plans (EAPs) for the expressway were prepared and submitted to the Bank for review. The EAs and EAPs are satisfactoryto the Bank. It has been ascertainedthat the expressway would not affect ecologically sensitive areas and that, if appropriate measures are taken, expressway construction and operation should have no significant adverse impact on the environment.
3.37 The EAPs specified the measures, organizations and monitoring arrangementsrequired to mitigatethe potential adverse effects on the environmentduring the construction and operation of the Expressway. The main measures relate to social disruption, noise, air quality including dust, soil erosion and water management, control of constructiontraffic, operationof quarries, and waste disposal. The engineeringdesign and technical specificationsfor the Expressway have incorporated appropriate measures required to be taken for environmental protection. Appropriate administrative arrangementshave been identifiedto ensure the enforcementof such measuresduring the construction and operation of the Expressway. Summaries of the EAs and EAPs are presented in Annex 3 and copies of the full EAs and EAPs are available in the Project File. Agreements were reachedfrom SM and ZP at negotiationsthat the environmental protection measures stipulated in the EAPs with respect to the Shanghai-Hangzhou Expresswaywill be carried out in a manner satisfactoryto the Bank. - 33 -
3.38 Road Safety Program. Since most of the works under the RSP would be directed to the upgrading of existing facilities, they are not expected to have significant impacts on the environment. Nevertheless, in order to fully mitigate potentially adverse effects of this program, an EA for the RSP has been carried out by the Environmental Protection Institute of Zhejiang Province. Based on findings of the EA, an EAP was prepared and found satisfactory to the Bank. An assurance was obtained from ZP at negotiations that the environmental protection measures stipulated in the EAPs with respect to the RSP will be carried out in a manner satisfactory to the Bank.
F. LAND ACQUISITION AND RESE'rLEMENT
3.39 The resettlement aspects of the proposed project have received considerable attention from the Bank since the preparation of a first Resettlement Action Plan (RAP) in 1993. The extensive preparation of resettlement aspects that has ensued was necessitated by: (a) the project's large scale resettlement impact, with more than 55,000 people affected by the loss of land, employment, and assets; (b) the implementing agencies' limited experience in preparing and implementing RAPs consistent with Bank guidelines; (c) and the Bank's increasing awareness and ability to assist the Chinese government to address the complex issues related to resettlement.
3.40 Current Status of Resettlement. The advanced state of preparation of this project, with an estimated start of major construction in September 1995 and advance construction of an expressway section in Zhejiang, is atypical and has resulted in implementation of resettlement prior to Board approval. All resettlement activities in Zhejiang Province have been completed and an initial internal monitoring report on resettlement in Zhejiang has been submitted to the Bank. Resettlement in Shanghai would begin in late July 1995 and estimated to be completed by October 1995. The early resettlement was implemented in a manner consistent with RAPs that were largely satisfactory to the Bank but still under discussion. In order to ensure equity and consistency of resettlement activities, Shanghai and Zhejiang are applying the principles, eligibility criteria, and compensation standards of the final revised RAP retroactively, so that all project-affected people are resettled according to RAPs found acceptable to the Bank. In Zhejiang Province, where this retroactive provision is relevant, all retroactive compensation will be paid before the end of July 1995. Retroactivity is not applicable in Shanghai because all resettlement will be carried out according to the final, revised RAP found acceptable to the Bank.
3.41 Background. Land acquisition and resettlement activities along the Pengbu- Wengmei advance contracting section in Zhejiang were completed between October 1993 and April 1994. In order to ensure that land acquisition and resettlement was carried out satisfactorily, the Bank requested that an evaluation of the resettlement activities be prepared by an independent monitoring institution. The resulting report indicated satisfactory completion of relocation activities, but cited delays in the process of providing eligible people with employment in enterprises. The employment placement process for the Pengbu-Wengmei section was completed by November 1994. - 34 -
3.42 The process and strategiesused for resettlementin this advance contracting section, and further, early lessons learned from implementationof resettlement in this section and under other projects in China, were scrutinized and, in most areas, the approach to resettlementstrengthened as reflected in the final, revised RAPs for all project components. During early phases of project planning, highway design institutes carried out surveys documentingthe adverse impact of the project on lands, houses, infrastructure, and other collectivelyor individuallyheld assets in the project area, as is regular practice for highway projects in China. However, the Bank's concernsabout the large number of people affected by this project and the provinces' limited previous experience with formulating RAPs warranted more intensive preparation of the project's resettlement activities. In late 1994, both Shanghai and Zhejiang, with the assistance of specialized agencies,initiated a socio-economicsurvey of the project area to: (a) verify the results of the earlier census surveys;and (b) establisha baselineof income levelsand socio-economic conditions(including assets held) of the affectedpopulation. The detaileddata from socio- economic surveys provided the basis for revised RAPs.
3.43 During subsequent preparation with assistance from the Bank's technical experts, other aspects of the resettlementprocess and the RAPs were addressedin depth, including: (a) the establishmentof a policy frameworkto ensure that living standardsfor all categories of affected persons are, at a minimum, restored; (b) the establishmentof transparent mechanismsto redress grievances of affected persons and the procedure for appeals; (c) the necessity to compensatefor all affected assets, and housing in particular, at full replacement values; (d) the inclusion of contingencies, especially for inflation, in resettlementbudgets; (e) the strengtheningof institutionalarrangements for both internal and external monitoringof land acquisitionand resettlementactivities; and (f the planning and execution of detailed processes of job creation. All of these issues, while complex, have been satisfactorilyaddressed in all RAPs.
3.44 Legal Basis of Land Acquisitionand Resettlement. By law, ownership of all land in China is vested in either the state or the collectives. Collectiveland belongs to farmers and is managed by village councils. Acquisition of land for development projects is governed by national laws, provincial implementationregulations, and project- specificregulations issued by provincial, municipal,or county governments. Since 1982, authorities in China have substantiallyrevised their laws and guidelineson resettlementin different types of projects.
3.45 A specific model has been developedfor resettlementarising from projects in transport and industry. At the core of this model cf resettlement are the following objectives: to avoid or minimizeresettlement; to restore or improve the standards of living of the adversely affected people; to consult affected localities during the project design stage; to compensate villages for land acquired from them and to compensate individuals for houses, standingcrops, or other individuallyheld assets; to provide land to adversely affected persons through redistributionof land in villages or to provide jobs in enterprises to members of villages where land per capita holdings fall below specified minimum amounts; to restore disrupted infrastructure or compensate its owner(s); to entrust implementationof land acquisitionand resettlementto local governments. These principles substantiallymeet the requirementsof Bank policy on involuntaryresettlement. - 35 -
Based on national principles for transport projects, Shanghai Municipalityand Zhejiang Province have issued specific regulations governing acquisitionof land and resettlement of people arising from the Expressway and the RSP.
3.46 HHEC, ZPEC, and ZPHAB (the project implementingagencies) are, on behalf the Municipaland Provincialgovernments, responsible for ensuring that all affected persons are resettledin accordancewith the principleof restoringor improvingincome and livelihoods in the shortest possible time. The project implementingagencies will ensure that affected persons are given the maximumpossible optionsas regards replacementsites and employment, and will make special efforts to ensure the continuity of productive employmentfor older, unskilled persons. The project implementingagencies will also increase resettlement staff in order to allow adequate implementationand reporting from local authorities.
3.47 Adverse Impacts of Shanghai-HangzhouExpressway. The total number of people to be adversely affected by constructionof the Expressway is 42,307, 82% of whom will be affected only by the loss of land. About 90% of the adversely affected residein Zhejiang, with Shanghairesidents accounting for the remaining 10%. Temporary land acquisition will affect an additional 200 persons in Zhejiang and 420 persons in Shanghai. Of the people adversely affected by loss of land, an estimated 8,239 persons need to be economicallyrehabilitated through land readjustmentand provision of jobs in non-agricultural enterprises. Further details on the adverse impact of the project are providedin Annex 4. ResettlementAction Plans (RAPs) developedfor each section of the Expressway have been reviewed and found acceptable to the Bank.
3.48 Adverse Impacts of the Road Safety Program. Resettlement surveys indicated that an estimated 13,964 individualswould be affected by civil works under the RSP. The land acquisition,resettlement and compensationprocedures to be followedare consistent with those applied for the Zhejiang expressway section: a separate RAP covering all packages under the RSP has been receivedand found acceptable to the Bank.
3.49 Monitoringand Evaluationof Resettlement.As in previous Bank-financed highway projects in China, regular monitoringand reporting will be used to evaluate the implementationof resettlement. The proposed project includes internal monitoring, and reporting by project implementingagencies HHEC, ZPEC, and ZPHAB, and independent (external)monitoring and reporting by specializedagencies in Shanghaiand Zhejiang. The agencies appointed for independent monitoring are the Shanghai Academy of Social Sciences(for Shanghai)and the Urban and Rural PlanningInstitute of HangzhouUniversity (for Zhejiang). These agencies were initiallyretained to help HHEC, ZPEC, and ZPHAB conduct socio-economicsurveys to estimate resettlementimpact as the basis for RAPs. The monitoringrepresents a continuationof the independentagencies' involvementin the resettlementactivities for this project.
3.50 The monitoring and reporting for all resettlement activities in Zhejiang Province are underway; the first internal monitoringreport dated June 15, 1995 has been received, and the first independentmonitoring report would be submittedto the Bank by July 15, 1995. For resettlementactivities in Shanghai, the first internal and independent - 36 - monitoring reports would be submitted to the Bank by July 15, 1995 and September 1, 1995, respectively. After the initial reports, additionalinternal monitoringreports would be prepared and submittedto the Bankevery 3 monthsand independentmonitoring reports would be prepared and submittedto the Bank every 6 months, according to the schedule described in Annex 6.
3.51 The monitoring is designed to examine and monitor progress in implementationof the RAPs, paying particular attention to the timelinessand adequacyof compensationpayments, proper relocation of resettlers, delivery of specified entitlements (including jobs and provisions for meeting the needs of vulnerable people) to eligible resettlers, and the adequacyof measures to restore the standardsof living of the affected people. The independent monitoring institutions will conduct surveys to determine the degree of success in meeting the objectivesof the RAPs, and will report their findings in writing to HHEC, ZPEC, and ZPHAB, recommendingspecific actions when warranted. Agreements were reachedfrom SM and ZP at negotiationsthat internal and independent monitoring will be carried out against the agreed RAPs; that internal and independent monitoringreports for resettlementwill be submitted to the Bank at three- and six-month intervals, respectively;and that, in the event changes in the RAPs are required based on the recommendationsof monitoringagencies or other evaluations,SM and ZP willfurnish the proposed revision of the RAPs to the Bankfor its prior approval.
3.52 As local governmentsare responsible for implementingresettlement plans in China, the expresswaycommissions have signed agreementswith the local governments to acquire land and resettle the adversely affected people. The majority of those losing land will be assigned new plots through redistribution of the remaining lands of the affectedvillages. Compensationfunds for land will be investedto increase the productivity of the remaining lands or establish/strengthenvillage enterprises. Those losing houses will be providedassigned plots in residentialsites providedby their villages. Based on relevant criteria, eligible persons will be employed in enterprises. Those being resettled are afforded opportunitiesfor productiveemployment through the assignmentof new land or the provision of non-agriculturalemployment in close proximity to their current land holdings or places of residence.
3.53 Resettlement Action Plans (RAPs). Summaries of the RAPs for the Shanghaiand Zhejiang segmentsof the Shanghai-HangzhouExpressway and for the Road Safety Program are included in Annex 4. Completecopies of the RAPs are available in the Project File. Agreements were reachedfrom SM and ZP at negotiationsthat all land acquisitionand resettlementactivities with respect to the Shanghai-HangzhouExpressway and the Road Safety Program will be completedaccording to RAPs found satisfactoryto the Bank.
3.54 Inplementation of RAPs.4/ The expresswaylength in Zhejiang Province consists of two sections. The first and smaller section, on the outskirts of HangzhouCity between Pengbu and Wengmei, is the site of an advance contracting section. Land
4/ Detailed implementationschedules for all land acquisitionand resettlement activities have been provided in the respectiveRAPs. - 37 - acquisitionand resettlementcompensation plans for this sectionwere implementedbetween October 1993 and April 1994. The secondand major sectionis situatedbetween Wengmei and Fengjing (on the border with Shanghai Municipality). Land acquisition for the Wengmei-Fengjingsection commenced in the fall of 1994 and has essentially been completed, to allow constructionto begin in mid-1995. The resettlementfor both of these sections was carried out according to an earlier version of the RAP for the Zhejiang section. The principles and compensation strategies in the RAP to be confirmed at negotiations will, as relevant, be applied retroactively to people already resettled. The resettlement for the RSP has largely been completed, according to the principles and compensationstrategies in this RAP. Implementationof resettlementin Shanghai would begin in late July 1995, to be consistent with the timing of construction.
3.55 Budgets of Y 173 million for the Shanghai expressway section, Y 294 million for the Zhejiang expressway section, and Y 32 million for the Road Safety Program have been earmarked for implementationof the respective RAPs. The budgets include provisions for annual inflation and for retroactive compensation for persons affected prior to Bank acceptanceof the final RAPs. Shanghaiand Zhejiang have agreed to make additional provisionsfor cost overruns during implementationof the RAPs.
G. CosT EsTMATs
3.56 The project is estimated to cost Y 6.2 billion, or $729.2 million, including costs of land acquisition and resettlement, taxes and duties, and physical and price contingencies. A project cost summaryis presented below.
PROJECTCOST SUMMARY/a
Local Foreign Total Local Foreign Total Foreign (Y million) (S million) (%
Works Shanghai-HangzhouExpressway 1,636.83 1,644.09 3,280.91 192.56 193.42 385.98 50% Road Safety Program 96.77 41.47 138.24 11.38 4.88 16.26 30%
Subtotal 1 ,733.60 1L685.56 3 419.15 203.94 198.30 402.24 49% Goods uipment 9.81 88.36 98.17 1.15 10.40 11.55 90% Technical Assistance Project ImplementationSupport/b 48.42 46.16 94.58 5.70 5.43 11.13 49% Institutional Development /g 5.84 14.20 20.04 0.69 1.68 2.36 73% Total Base Cot 1 797.67 1 834.27 3,631.94 21147 ,2158 0 427.27 51% Physical contingencies 178.20 173.18 351.38 20.96 20.37 41.33 49% Price contingencies 1,191.83 298.68 1,490.51 140.22 35.14 175.36 20% Taxes and duties 226.06 0.00 226.06 26.59 0.00 26.59 Land acquisition and resettlement 498.11 0.00 498.11 58.60 0.00 58.60 0% Total Proiect Cost 3,891.86 2 306.13 6,197.99 457.85 271.31 729.16 37%
/a All figures are rounded. The assumed exchange rate is 8.50 yuan per dollar. Physical contingencies were estimated at 10% of the cost of works and construction supervision. Price contingencies were estimated based on current price escalation factor, described in para 3.57 and in Annex 5. Land acquisition and resettlement figures include contingencies. /b Comprises consultant services for the supervision of construction. 7Z Comprises consultant services for training and road safety technical assistance. - 38 -
3.57 The foreign exchangecost is estimatedat $271.3 million, or 37 percent of total cost. Base costs were estimated in November 1993 and adjusted for local currency devaluationin mid-1994. Physicalcontingencies were calculatedat 10 percent of the base cost of works and supervision of highway construction. Price contingencieshave been calculated for both foreign and domestic costs, using the current Bank annual escalation factors. Annualinflation rates assumed for foreign costs were 3.1%, 6.9%, 2.0%, 1.6%, 2.1%, 2.4%, 2.2%, and 2.5% for the years 1994 to 2001, respectively. Annual inflation rates assumedfor local costs were 25.0%, 14.0%, 10.5%, 8.5%, 7.0%, and 6.5% for the years 1994 to 1999, respectively, and 6.2% for the years 2000 and 2001. Identifiable taxes and duties for works and equipment, included in the project cost analysis, were estimated at Y 226 million (approximately$26 million).
3.58 The cost of civil works is based on the following:
(a) Zhejiang Province:
(i) the value of Contracts 1 through 4 approved by the Bank for the Pengbu-Wengmeisection (NCB procurement);
(ii) final plan quantitiesand MOC standard unit costs for Contract 5 of the Pengbu-Wengmeisection (NCB procurement); and
(iii) the value of Contracts 6 through 10 approved by the Bank for expresswayconstruction (ICB procurement).
(b) ShanghaiMunicipality - final plan quantities and MOC standard unit costs for expresswayconstruction under Contracts HHO1,HH02 and HH03 (ICB procurement).
(c) Road Safety Program - final plan quantities and standard Provincial unit costs for the nine road sections (NCB procurement).
The cost per kilometer of the expressway component reflects in part the advance preparationbeing done for later expansionto six lanes, including, in the Shanghaisection, subgrade works for six lanes. Further, both Shanghai and Zhejiang will build selected structuresto a six-lane standardand will complete all land acquisitionand resettlementfor a six-lane ROW during the current project stage.
3.59 The cost of equipmentwas estimated based on prevailing prices and prices quoted by manufacturersand suppliers. The estimatedcost of consultingservices is based on recent contracts for similar services under ongoing highway projects. Additional informationon project cost and financingis provided in Annex 5. - 39 -
H. FINANCING
3.60 The proposed Bank loan of $260 million would represent 36 percent of the total project cost and 96 percent of the foreign exchange cost. The Central Government of China would provide $58.1 million equivalent in grant funding, SM would provide $177.3 million equivalent, and ZP would provide $233.8 million equivalent to cover the remaining costs of the project, including contingencies. Local financing of the project by Shanghai and Zhejiang would comprise highway sector user charges and other funds raised at the provincial level. Agreements were reached at negotiations that the Central Government would make the proceeds of the loan available to SM and ZP on the same terms as those of the Bank loan, with SM and ZP bearing the foreign exchange risk. The details of project financing are shown below and in Annex 5.
SUMMARY FINANCING PLAN
Base cost, including Financing (US$ ri1llion) IBRD Category contingencies /a IBRD MOC SM and ZPG % (US$ million)
Civil works and E&M 609.95 229.55 58.11 322.29 38%
Equipment 13.95 10.38 --- 3.57 74%
Technical assistance /b 20.08 20.08 --- 0.00 100%
Land acquisition and resettlement 58.60 ------58.60 0%
Taxes and duties 26.59 ------26.59 0%
Total cost incl. contin2encies 729.16 260.00 58.11 411.06 36%
/a Contingencies were calculated using the Bank's standard price escalation factors, as described in para 3.57. /p Includes construction supervision, training, and road safety technical assistance.
3.61 Delays of more than one year have been sustained in all project components during preparation; however, the sequencing of project activities as confirmed during appraisal will be maintained during implementation (as shown in Annex 6). Retroactive financing has been requested to allow necessary start-up activities to proceed, so that the overall implementation plan can be kept intact and further delays can be avoided. The need for retroactive financing is anticipated for the following project activities, which in total require $26 million (10 percent of the $260 million loan). Retroactive financing - 40 - would apply to payments made after September1, 1994 (based on a planneddate for loan signing of September 1, 1995).
(a) Construction of the Shanghai-Hangzhou Expressway (Shanghai and Zhejiang). Retroactivefinancing is requested for start-up activities related to construction of sections the main expressway alignment under 3 ICB contracts in Shanghaiand 5 ICB contracts in Zhejiang. The constructionof these sections is scheduledto begin in early September, 1995: mobilization advancesto contractorswould be retroactivelyfinanced. The ICB contracts in Shanghai also include a soft soil test section proposed for retroactive financing, comprising testing of soil and of remedial measures, to address the difficult geologicalconditions along the alignment. The soft soil works are typically done before major construction so that test results and observations of settlement along bridges and embankments may be taken into considerationin the selectionof soft soil remedies during construction of the main expresswayand structures. Advancework on soft soils would also help makeuse of a scarceresource, excavatedearth accumulatedduring the ongoingTaipu River and HuangpuRiver Projects, reducing the need for excavation of farmland for soil, and would be cost-saving. The total estimated cost of these works is $2.8 million; the amount of retroactive financingis $0.5 million. The total estimated cost of the ICB contracts in Shanghai and Zhejiang is $483.4 million; the amount of retroactive financing is $16.1 million ($1.2 million in Shanghai and $14.9 million in Zhejiang).
(b) Supervision of Construction for the Shanghai-Hangzhou Expressway (Shanghai and Zhejiang). The mobilization of a construction supervision team and training that would be completedprior to constructionare critical start-up activities for the project, and would be retroactively financed. The total cost of constructionsupervision services for the Expressway(including training) is $16.6 million; the amount of retroactive financing is $1.0 million ($0.1 million in Shanghaiand $0.9 million in Zhejiang). (c) Constructionof the Pengbu-WengmeiSection (Zhejiang). Work on the first 13 km section of the Expressway originating in Hangzhou began in February 1994 in expectation of an FY95 Board date. Early construction of these sections will relieve a potentially serious traffic bottleneckfor the three- to four-yearperiod betweenthe opening of the Hangzhou-Ningboand Shanghai-HangzhouExpressways. The works will be completedby mid- 1996. The total estimated cost of the works is $30.7 million; the amount of retroactive financingis $8.6 million. All of the retroactive financing proposals are subject to satisfaction of the Bank's requirements for environment, resettlement,and procurement. For retroactively-financed civil works in this project, the Bank also specifically requires adherence to the overall project implementationplan, monitoring reports that indicate satisfactory completion of resettlementaccording to agreed RAPs, adequateconstruction supervision to ensure quality of the works, and progress reporting. - 41 -
I. PRoJEcr IMPLEMENTATION
3.62 Implementation of the project would be the primary responsibility of expressway and highway agencies in Shanghai Municipality and Zhejiang Province. Annex 6 provides an implementation schedule for all project components, timetable for civil works, and further description of the organizational arrangements for project implementation.
3.63 Arrangements for project implementation were developed at appraisal and confirmed at negotiations. At negotiations, understandings were reached regarding the role, organization and staffing of the Shanghai Municipality's Shanghai-Hangzhou Expressway Engineering Construction Executive Commission, Zhejiang Provinces' Shanghai-Hangzhou-Ningbo Expressway Project Executive Commission, and the Zhejiang Provincial Highway Administration Bureau (the implementing agencies for the Expressway and the RSP). Agreements were reached during negotiations that the project implementing agencies for the Shanghai-Hangzhou Expressway and Road Safety Program components will at all times be staffed with qualified staff in adequate numbers.
3.64 The project has been delayed significantly during preparation due to changes in design, cost, and resettlement components, affecting both government approvals and ability to secure Bank financing. This has resulted in a delay of at least one year in the onset of expressway construction. The phasing of works during project implementation is subject to further change. Therefore, it was agreed at negotiations that Shanghai and Zhejiang will submit to the Bank a detailed implementation plan, covering all aspects of the project, including environment and resettlement, by September 30 of each year beginning in 1996, for activities during the coming year, and will thereafter carry out such work taking into account comments made by the Bank.
3.65 Shanghai-Hangzhou Expressway. The Shanghai Shanghai-Hangzhou (Hu- Hang) Expressway Construction Commission (HHEC) would be the implementing agency for the Shanghai section of the Expressway, under the direction of the Leading Group for Shanghai's Major Transport Projects. The Zhejiang Provincial Expressway Project Executive Commission (ZPEC) would be the implementing agency for the Zhejiang section of the Expressway, under the direction of the Zhejiang Provincial Expressway Project Steering Committee. Since the Expressway would be a segment of the national highway network, MOC is also expected to provide general supervision and guidance for execution of the project. During negotiations, understandings were reached concerning the authority, role, organization, and staffing of all project implementing agencies. The implementing agencies have been authorized to complete recruitment of staff for project management and to enter into contracts for project implementation.
3.66 The organizational and staffing arrangements for construction supervision of the Expressway were confirmed during project appraisal. Construction would be supervised by joint supervision teams, one located in Shanghai and the other located in Hangzhou, each headed by a Chief Supervision Engineer with a Resident Engineer located on site for each of the construction contracts. About 160 personnel would be permanently engaged in supervision. Invitations to shortlisted international consulting firms were issued - 42 - in February 1994. A qualifiedfirm has been selected and the consultantsare expectedto be mobilized during the third quarter of 1995 to begin training local personnel in constructionsupervision and to help set up the organizationfor supervision.
3.67 The invitationto bid was issued to prequalifiedcontractors in Novemberand July 1994 for Shanghai and Zhejiang, respectively. Constructionof the main part of the Expresswayis scheduledto commencein September1995 and be completedin early 2000, or in about 54 months.
3.68 During negotiations, understandingswere reached concerningthe location, timing, and responsibility for implementationof ancillary civil works in the Shanghai expressway section that will be completed without Bank financing. The implementation of these works is consistentwith overall project implementationfor the expressway, and would be reviewed during project supervision.
3.69 The installation of electrical, electronic and mechanical systems for the operation of the expresswayis scheduled to commencein late 1998 and be completedby mid-2000. The constructionof service facilitiesand improvementof crossroads at the six expressway interchanges in Zhejiang Province will begin in late 1995 and be completed in early 2000, concurrently with the expressway works.
3.70 Road Safety Program. The Zhejiang ProvincialHighway Administration Bureau (ZPHAB)would be the executingagency for the RSP. ZPHAB was the principal agency involved in implementationof the Zhejiang provincial component of the Bank's first highway project in China and the Road ImprovementProgram under the Zhejiang Provincial Highway Project. A special unit has been set up in ZPHAB to manage the program, coordinate its activities with all concerned agencies, ensure consistency in the quality of design, supervise, expedite implementationand meet reporting requirements (Annex 2). The needs of this unit for laboratory equipmenthave been included in the list of equipment to be provided under the project. Also, needs for transport would be provided under the civil works contracts for the implementationof the RSP. During negotiations, an understanding was reached that the transport administrations at prefectural/countylevels are adequately staffed for implementationof the RSP and the procurement or mobilizationof equipment office facilities, transportation, staff training arrangements,and other necessaryresources for the preparationand execution of the RSP subprojectsis underway.
3.71 The formulation, preparation and execution of the RSP involves several highway sector agencies in Zhejiang Province. Zhejiang Provincial Transport Design Institutein cooperationwith the relevant design institutes of municipalitiesand prefectures would be responsiblefor preparing preliminary and final engineering designs as well as biddingdocuments for the subprojectsunder the RSP. The design and bidding documents would be reviewed and approved by ZPHAB. Construction of the first section of the program is scheduled to commence in late 1995 and be completed in about 24 months. The design and road safety impact of individualRSP sections would be addressedin detail in section information packages submitted to the Bank for review. The program as a whole is scheduled to be completedby the end of 1997. - 43 -
3.72 Equipment. The responsibility for procurement of equipment would be divided between HHEC, the Shanghai Highway Management Department, ZPEC and ZPHAB. HHEC and ZPEC would be responsible for the procurement of equipment related to the Expressway component, such as equipment for the central laboratory, environmental protection, soft-soil treatment research, and operation and maintenance of the highway. Equipment for the central laboratory and environmental protection would be procured during 1996/97, equipment for operation and maintenance of the highway is scheduled to be procured during 1997/99. A portion of the Shanghai equipment list is being procured in advance by the Shanghai Highway Management Department, and would be available to highway agencies in Shanghai by the end of 1995.
3.73 Responsibility for the procurement of equipment related to the RSP component of the project would rest with ZPHAB. Equipment for the RSP is scheduled to be procured during 1996/97, so that equipment may be available during the implementation of the RSP technical assistance.
3.74 The project as a whole is scheduled to be completed by December 31, 2000 with the loan closing date stipulated as June 30, 2001.
J. PROCUREMENT
3.75 The procurement of all Bank-financed activities under the project will be in accordance with "Guidelines for Procurement under IBRD Loans and IDA Credits" dated January 1995 and as shown in the following table. Procurement arrangements for the project have taken into account the experience gained from previous Bank-financed highway projects. The documentation for procurement, which covers the prequalification of contractors under International Competitive Bidding (ICB) and National Competitive Bidding (NCB) for civil works and goods, has been standardized for Chinese conditions in cooperation between the Chinese Government and the Bank. The revised set of model documents would be used for all relevant procurement processes under the project. In particular, prequalification criteria for civil works under ICB procedures have been tightened and are now based on performance requirements pertinent to each of the contracts.
3.76 Civil Works. A large proportion of contracts for civil works for the expressway (83 percent of contract value) would be procured under ICB. ICB procurement for works will be used for contracts of $10 million and above. There are eight ICB contracts for civil works for the Expressway,five in Zhejiangand three in Shanghai, with an estimated cost of $483.4 million. Contracts average about 15 km in length with costs in the range of about $49-70 millioneach. Contractors, accordingto their bidding capacity (determined during the evaluation of the prequalification submissions), would be permitted to submit bids for one or more contracts. Qualified domestic contractors would receive a 7.5 percent preference in bid evaluation on these contracts.
3.77 An additional five civil works contracts, for constructionof the first 13 km section of the Expresswayadjoining Hangzhou and includingthe Wengmeiinterchange and a 6-km Class 2 link road connectingto NR 320 at Lingpin, are to be procured under NCB - 44 -
PROcuREMENr ARRANEmEN ($ million)
Procurement method Total ICB NCB Other Not Bank project Financed cost
Civil Works Shanghai Expressway Section 182.1 25.4 /a 207.6 (48.0) (48.0)
Zhejiang Expressway Section 301.3 70.8 372.0 (126.0) (29.6) (155.6) Road Safety Program 25.9 25.9 (8.8) (8.8) E&M supply and installation Shanghai Expressway Section 3.8 1.8 /b 5.6 (2.9) (2.9)
Zhejiang Expressway Section 20.2 20.2 (14.2) (14.2) Equipment Shanghai 2.2 0.4 0.3 /c 4.8 /e 7.7 (1.7) (0.3) (0.2) (2.2)
Zhejiang 9.6 1.1 0.5 /c 11.1 (6.8) (0.8) (0.3) (7.9) Road Safety Program 0.3 0.1 /c, /d 0.3 (0.2) (0.0)/d (0.3) Consultancies /f Implementation Support /g 17.1 17.1 (17.1) (17.1)
Institutional Development /h 3.0 3.0 (3.0) (3.0)
Land acquisition and resettlement 58.6 58.6
Total 519.2 98.4 20.9 90.6 729.2 (199.6) (39.7) (20.7) (260.0) Notes: All figures are rounded, and include physical and price contingencies and taxes. Figures in parentheses represent amounts financed by the Bank Group; the IBRD loan would not be used to finance taxes.
/a Ancillary works to be procured under local procedures. /b Direct contract with the Shanghai Power Administration Bureau - Songjiang Branch. /c International and National Shopping. /d Represents equipment valued at $62,000, with Bank financing of $45,000. /e Advance procurement of equipment by the Shanghai Highway Management Department. If Selection of consultants according to 'Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency." /9 Comprises supervision of construction. /h Comprises training and road safety technical assistance. - 45 - procedures acceptable to the Bank. The cost of these contracts is estimated at $39.6 million. Advance contracting and NCB have been used for the first four contracts, covering 13 km of the expressway: constructionbegan in February 1994 with completion expected by mid-1996. The fifth contract, for constructionof a 6-km access road to NR 320, will be awarded under NCB proceduresin 1996 with completionscheduled by the end of 1998. NCB procedureswere used because(a) the expresswaypasses through the urban fringeof Hangzhouwith several administrativesubdivisions and attendantutility relocation works, all of which made it doubtfulwhether major out-of-provinceor foreign contractors would join the bidding; however, contractors were permitted to bid for more than one contract; and (b) contracts under NCB procedures could be processed more quickly, potentiallyproviding earlier relief to the congested Hangzhouroad network.
3.78 Remainingcivil works contracts financedby the Bank in ZhejiangProvince include (a) eight contracts for the upgrading of 56 km of cross roads at six Expressway interchanges with an estimated cost of $17.4 million, (b) six contracts for minor construction works along the expressway with an estimated cost of $13.7 million, comprisingbuildings for toll stations, maintenancedepots, serviceareas and administrative buildings, and (c) civil works for the RSP, with an estimated cost of $25.9 million. Contracts for these three categories will likely be relatively small in value and are not considered to be attractive to foreign firms; therefore, ICB would be neitherjustified nor practical and the contracts would be awarded under NCB procedures acceptable to the Bank. Qualifying foreign firms would not be precluded from bidding for the contracts.
3.79 The project also includes ancillary civil works for the expressway section in Shanghai Municipalitythat would not be financed by the Bank. The ancillary civil works have an estimated cost of $25.4 million and comprise pumps, small bridges, toll stations, and related minor works. These works are small-scaleand scattered, and would be procured under local procedures (para 3.21).
3.80 Supply and Installation of Electrical and Mechanical Equipment. Electrical and mechanicalworks for the Expressway will be procured under 3 contracts. The Bank will finance two of these contracts, to be procured under ICB with a total cost of $24.0 million, for the supply and installationof equipmentin each of the Shanghaiand Zhejiangexpressway sections. A third contract for the provisionof power in the Shanghai section will be procured by direct contract with Shanghaipower authorities because the supply of power in Shanghai is provided by a monopoly, and will not be financed by the Bank.
3.81 Equipment. All contracts for goods and equipment estimated to cost $200,000 or more would be procured following ICB procedures. Qualifying domestic contractors and manufacturerscompeting under ICB would be eligible for a margin of preference in the comparison of bids of 15 percent, or the prevailing custom duties, whicheveris lower. Contracts with estimated cost over $50,000 and up to $200,000 and in aggregate amounts not exceeding $0.4 million for Shanghai and $1.4 million for Zhejiang would be procured following NCB procedures. All other items or groups of items covering minor maintenance, laboratory, research, and environmentalequipment associated with the two expressway sections and the RSP, of up to $50,000 per contract - 46 - and in aggregate amounts not exceeding $0.3 million for Shanghai and $0.6 million for Zhejiang would be procured following international or national shopping procedures. Internationaland national shoppingprocedures would be based on a comparisonof price quotations solicited from at least three suppliers in accordance with "Guidelines for Procurement under IBRD Loans and IDA Credits" dated January 1995.
3.82 Consulting Services. The need for consultingexpertise was identified for the supervision of construction, staff training, and for technical assistance to support the RSP component. Local expertise available in the various provincial universities and institutes in the subsector would be used as much as possible. All consultants would be employed under terms and conditions acceptable to the Bank in accordance with "Guidelinesfor the Use of Consultantsby World Bank Borrowers and by the World Bank as Executing Agency."
3.83 Bank Review. During project supervision,contracts for expressway works above a threshold of $4 million and all works contracts under the RSP would be subject to the Bank's prior review procedures. The review process would cover about 94 percent of the total works contract value (100 percent, ICB; 64 percent, NCB). Goods contracts above $200,000 would also be subject to prior review, covering 83 percent of the total value of Bank-financedgoods. All contracts for electrical and mechanicalworks would be subject to prior review. Consulting services contracts with value over $100,000 for firms and over $50,000 for individualswould also be subject to prior review by the Bank. All other contracts would be subject to ex post facto review.
K. DISBURSEMENTS
3.84 The proposedIBRD loan of $260 million would be disbursed over a period of about six years, as follows:
(a) Civil Works Construction Shanghai Expressway Section $40.4 million 35 percent ZhejiangExpressway Section $132.3 million 43 percent Road Safety Program $7.5 million 35 percent Supply and Installation of Electrical and Mechanical Equipment ShanghaiExpressway Section $2.5 million 79 percent Zhejiang Expressway Section $12.1 million 73 percent (b) Equipment Shanghai Expressway Section $2.2 million 100 percent of foreign ZhejiangExpressway Section $6.3 million expenditures, 100percent Road Safety Program $0.6 million of local expenditures(ex- factory), and 75 percent of local expenditures for other items procured locally - 47 -
(c) Consultantservices and training Shanghai Expressway Section $5.8 million 100 percent Zhejiang Expressway Section $10.4 million 100 percent Road Safety Program $0.8 million 100 percent
(d) Unallocated $39.1 million
Total $260.0 million
3.85 To facilitatedisbursement, Special Accounts would be opened separatelyfor Shanghaiand Zhejiangwith initial depositsof $4.0 million for Shanghaiand $12.5 million for Zhejiang, the estimated average expenditures for a four-monthperiod. The account would be opened in US dollars in a bank acceptable to the Bank, and would be managed by SM and ZP. Applicationsfor replenishmentof the SpecialAccount would be submitted monthly or whenever the Special Account is drawn down to 50 percent of its initial deposit, whichever comes first. A schedule of estimated disbursements is provided in Table 3.8. This schedule takes into considerationthe disbursementprofile for transport projects in China and the potential risk of delays in project implementationdue to the difficult subsoil conditions.
3.86 Disbursementswould be made against priced contracts for the civil works and delivery and installation of the equipment. Interim certification of civil works completedand costed at unit rates in the contracts would be done by the joint supervision teams, and payments would be authorizedby SMEAB, ZPEC and ZPHAB. Retroactive financing of $22.1 million would be applied to expendituresfor civil works, consulting services, and equipment contracts for the Expressway and the RSP. Disbursementsfor staff training in China or abroad would be made against the actual costs of travel, subsistence,and tuition or trainingfees. Reimbursementfor individualexpenditures under contracts of $4 million or less for expressway works, $200,000 or less for goods and electrical and mechanicalworks, $100,000 or less for consultingservices contracts with firms, and $50,000 or less for consulting services contracts with individuals and for training may be made on the basis of Statementsof Expenditures(SOEs). Documentation supporting SOEs would be retained by the implementingagencies and made available for review by Bank supervisionmissions.
L. PROJECTMONITORING AND SUPERVISION
3.87 Monitoring. During implementation,project performance, including the achievementof physicaltargets and attainmentof other project objectiveswill be monitored by the HHEC, ZPEC, and ZPHAB through the use of performance indicators (described in Annex 6x, progress reports and auditing of project accounts. In addition, upon completion, the project will be reviewed in an ImplementationCompletion Report.
3.88 The Foreign Investment Audit Bureau of the State Audit Administration (SAA) would be responsible for auditing the accounts of project expenditures. Actual audits in Shanghaiwould be carried out for SAA by the ShanghaiMunicipal Audit Bureau, a subordinateorganization of SAA. Audits in Zhejiang would be carried out either by the - 48 -
Zhejiang Branch of SAA or the Zhejiang Provincial Audit Administration. Agreements were reached with the Borrower, SM and ZP at negotiationsthat the project accounts, the Special Accounts, and SOEs will be audited annuallyby independentauditors acceptable to the Bank. Audit reports will be sent to the Bank for review within six months of the close of each fiscal year. In the case of SOEs, the audit report will contain a separate opinion by the auditors as to whether the SOEs submitted during the fiscal year, together with the procedures and internalcontrols involvedin theirpreparation, can be relied upon to support the related withdrawals.
3.89 Based on the monitoring activities carried out by HHEC, ZPEC, and ZPHAB, the followingreports will be submittedto the Bank:
(a) A series of internal and external (independent) monitoring reports (as described in Annex 6) assessing the impact of land acquisition and resettlement on various segments of the local population, describing the incomerestoration strategiesfollowed, and indicatingthe number of people rehabilitated;
(b) Annual audit reports for the project accounts and agencies' financial statements (para 3.88);
(c) Quarterly progressreports for all project activities (civilworks, construction supervision, technical assistance, training, procurement of goods and services and environment),including up-to-date performance indicators;
(d) Quarterly monitoringreports for the Road Safety Program (para 3.31); and
(e) A Project Implementation Completion Report would be prepared and submittedto the Bank not later than six monthsafter the loan closing date.
During negotiations,it was agreed that ShanghaiMunicipality and Zhejiang Province will eachfurnish quarterlyprogress reports to the Bank and, upon completion of the project, will each prepare an ImplementationCompletion Report no later than six months after the loan closing date.
3.90 Supervision. The project would be supervisedregularly by Bank missions. A supervisionmission plan, indicatingkey activities, is provided in Annex 7. In addition to field missions,staff input wouldbe providedat headquartersfor project-relatedactivities such as completion of supervision reports, review of documentationsubmitted for the clearanceof RSP subprojectpackages, review of procurementdocumentation and contracts, and staff training proposals. The Bank's supervisioninput is estimated at 85 staff-weeks, 38 in the field and 47 at headquarters. - 49 -
4. ECONOMIC EVALUATION
4.1 The economic analysis for the proposed project focuses on the civil works componentsthat, togetherwith associatedconstruction supervision and design, survey, and testing, account for over 97 percent of the project base cost. The main infrastructure investmentsin the project comprise:
(a) constructionof the Shanghai-HangzhouExpresswayl/; and
(b) improvementsto existingroads under the Road Safety Program.
A. MAN BENEFTS AND BENEFIcmAlUEs
4.2 The major quantifiable benefits of the Shanghai-HangzhouFxpressway (hereafter, "the Expressway") and associated access roads would include: (a) reduced traffic congestion for traffic remaining on the existing Shanghai-Hangzhouhighway; and (b) improved driving conditions,reduced traffic interference, and reduced travel distances and times for traffic on the new expressway due to restricted access and the direct and relatively uncongestednature of the new alignment.
4.3 The principal direct benefit of the Road Safety Program (RSP) is expected to be a significantreduction in traffic accidentsalong the improved section of NR 320 due to (a) the separationof slow-movingbicycles and agriculturalvehicles from faster vehicular traffic through provision of separate lanes for the slow traffic, and (b) by improved intersection layouts. Longer-term (but unquantified)benefits from the program would include (a) generally improved design of highway carriageways and intersections in the region based on training received and experience gained in this project, and (b) reduced accidentsby remedial work at blackspotsidentified using equipmentand training provided under the project.
4.4 Benefits from the project would accrue to road users in the form of cost, time, and accident savings, and to the Provincial Government in the form of reduced highway maintenancecosts and reduced burden on emergencyservices. Many road users
I/ The expressway segment proposed for financing under this project comprises the major portion of the Shanghai-Hangzhou Expressway. A 20-km segment of this expressway, adjoining downtown Shanghai, was completed in 1990 without Bank assistance. The remaining 130 km comprise the proposed Bank project. - 50 -
are own-accountoperators for productive enterprises or, in the rural areas, individual farmers, and thus should capture the benefits of the project directly. The public freight and passengerservices are also likely to respond to increasedcompetition so that transport costs savings would be passed on to the users; at minimum, reducedoperating costs would permit future price increases to be held down. Passengerswould in any case enjoy the time savings offered by the project.
4.5 The project also affords important, but non-quantifiable, institutional benefits. The project implementing agencies would directly benefit from project development,management, and expresswayoperations experience which would be relevant to their future activities in the sector. Staff in the implementingagencies would benefit from training and practical experience in contracting and procurement. The highway sector agencies in Shanghai and Zhejiang would strengthen their capacity to develop, maintain and operate highways through the expansionof equipment fleets made possible by equipmentprocurement in this project. Zhejianghighway authorities at provincial and local levels would benefit from specializedtraining, practical experience, and enhanced institutionalcapacity for road safety.
B. EVALUATION OF THE SHANGHAI-HANGZHOU ExPRESSWAY
4.6 The Existing Corridor. The Shanghai-Hangzhoucorridor is a rapidly developing part of the East Coast with activity ranging from traditional intensive agriculture to light manufacturing. Shanghai is the largest city in China, and strong economic growth is generatingincreasing demands for goods and raw materials from the surrounding region. Transport demandsfor both freight and passengers are consequently growing rapidly.
4.7 The main road in the corridor is NR 320; the section of NR 320 from Hangzhou to Yuhang passes through urban Hangzhou, which is now becoming very congested, and then around the only hills in the region; while the hills have no serious adverse affects on grades and curvature, they do force the alignment to the north, which adds considerabledistance to the route to Shanghai. The alignmentof NR 320 in Shanghai is also not very direct, althoughfor historicalrather than topographicalreasons. Further, since a section of the Shanghai-HangzhouExpressway is already opened to traffic in Shanghai (the Xinzhuang-Songjiangsection, which opened in 1990), high speed traffic from the Songjiang terminus on the expressway to Fengjing now has to traverse some inadequate minor roads to rejoin NR 320. Due to this inadequate access to Songjiang, traffic between Shanghai and Fengjing moves along several parallel routes, including (a) the Expressway-linkroad to NR 320, (b) entirely on NR 320 from Xinzhuang, (c) the Songjiang-ZhengdianHighway and (d) the Maogang-XinbangHighway. Most of these routes have sections of low standard, and, apart from the Xinzhuang-Songjiangsection of the Expressway,none of the roads exceeds two-lane standard. - 51 -
4.8 In contrast to the sections near Hangzhouand Shanghai, the central section of NR 320 from Fengjingto Yuhangis well-alignedand of good geometric standard. This section of the route was upgradedto "Super Class II" standardin 1988, and comprises a 12 m carriagewaywith two 1 m shoulders. While not a full four lanes, motor traffic tends to use the central portion of the carriagewayand slower traffic keeps to the right. Being a densely populated area, villages and towns are quite frequent, but generally frontage developmentis relatively restrained. There are some 180 side road intersectionsalong the central section of NR 320, with associatedinterference to traffic.
4.9 The Shanghai-Hangzhoucorridor is also served throughout its length by Zhejiang Provincial Highway 01, with continuingextensions into Shanghai; this road for the most part follows the coastline of the Qiantang River and estuary. The total length from Pengbu to Songjiang is about 176 km, a little longer than via NR 320. Design standardsvary considerablybetween Zhejiang and Shanghai. In Zhejlang, which contains two thirds of the route, the highway is of mostly low standard, between 6-7 m wide and with an inferior alignment. In Shanghai,the route has been upgradedto four-lanestandard to exceed the quality of NR 320. In whole, the route does not carry much of the current Shanghai-Hangzhoutraffic (total volumesare about one third those of NR 320) and mostly serves local needs.
4.10 The Proposed Shanghai-Hangzhou Expressway. The Expressway would be constructed to four-lane standard with access restricted to normal motor traffic; agricultural tractors and nonmotorizedtraffic would be excluded. Provision is being made to expand the Expressway to six-lane standard at a later date. Three alternative route alignments were evaluated in the early stages of the project. The selected, central alignment is the shortest, linking with the completed first section of the Shanghai- HangzhouExpressway at Songjiangin Shanghaito the Pengbu terminus of the Hangzhou- Ningbo Expresswayin Hangzhou.2/
4.11 The proposed expressway is approximately130 km long, with 27.5 km in Shanghai (Songjiang-Fengjing)and 102.5 km in Zhejiang (Fengjing-Pengbu). For purposes of economic evaluation, sections of the existing NR 320 from Hangzhou to Yuhang, Yuhangto Fengjing, and Fengjing to Songyinwere considered,plus an additional section of the Son-Jin (Songjiangto Jinshanwei)highway. This 165-kmroute represents the best available alternative route to the proposed expressway. The distance saving by using the expressway instead of this alternative route would be 35 km, with most of the saving concentratedat the two ends as indicated below:
2/ The Pengbu interchange, part of the Hangzhou-NingboExpressway being constructed under the Zhejiang Provincial Highway Project, was completed in 1995. The entire Hangzhou-Ningbo Expressway is expected to open to traffic by 1997. - 52 -
Existing Expressway Saving (km) (km)
Songjiang-Fengjing 41 27.5 33% Fengjing-Yuhang 93 84.5 9% Yuhang-Pengbu 31 18.0 42%
Total 165 130.0 21%
4.12 Trafric Volumes and Speeds on the Existing Roads. Records from the Zhejiangand Shanghaitraffic countingprogram indicate extremely rapid growth in traffic in the Shanghai-Hangzhoucorridor (Tables 4.1 and 4.2). Total motor vehicle traffic grew at 15 to 20 percent per year during 1986-92,with growth of small vehicle traffic averaging 18 to 27 percent. Growth has acceleratedduring the 1990sto about 21 to 26 percent per year, with growth of small vehicle traffic reaching 30 to 37 percent. Traffic distribution patterns are illustrated below (paras 4.13 and 4.14), based on counts at the 24-hour count station at Nanhu on NR 320 near Jiaxing, located about halfway between Shanghai and Hangzhou. Bank missionobservations confirm the counts as representativeof actualtraffic flows.
4.13 Detailed traffic count records from Nanhu, show that daytime traffic flows are fairly evenly distributed, with the highest hour takingjust over 7 percent of the daily traffic. A relatively high proportion of traffic moves at night, with 15 percent of all movementsoccurring in the eight hours between 10 pm and 6 am and a further 16 percent in the four hours between 6 pm and 10 pm, in both cases about half as high again as the normal proportion. All these factors indicate constant traffic pressure on the existing highway, with some drivers preferring to travel by night to avoid daytime congestion in the corridor.
4.14 Traffic speedson the central section of NR 320 currently average about 30 to 35 kilometers per hour (km/h) during the day, much lower than the average speed of 45 to 55 km/h observed by Bank missions during 1993. High traffic volumes, combined with the fast developing congestion, as evidenced by the considerable drop in average speeds within a matter of a year, make the road vulnerable to major disruption by traffic accidents or road works. Speeds are even lower on the sections near Hangzhou and in Shanghai(apart from the sections of expresswayalready opened) where road geometryis less satisfactoryand local traffic volumesare higher. It currently takes about 5 to 6 hours to drive from the center of Shanghai to the center of Hangzhou, a distance of about 200 km.
4.15 Projected Traffic on the Expressway. Projections of expressway traffic require estimates of traffic growth and traffic diversion.
4.16 Regardingtraffic growth,prevailing high growth rates and continuingstrong economic expansionmake the task of traffic projectionsextraordinarily difficult. Clearly, the current very high traffic growth cannot continue indefinitely,but there are few clues - 53 - as to when it might end. Becausecurrent growth rates are high, an error of only a few years in judging the duration of the high growth period may have a profound impact on the overall level of projectedtraffic. This is criticallyimportant since the justificationand timing of the expresswayhinges on the rate at which traffic congestiondevelops along NR 320.
4.17 Some considerationson selectingtraffic growth rates are set out below:
(a) Highwaytraffic growth rates tend to run higher than economicgrowth rates. Current economicgrowth is in the range of 10 to 15 percent per year, and long-term sustainablegrowth is perhaps around 10 percent per year. This indicates a traffic growth in the region of 10 to 15 percent per year, and
closer to 20 percent per year at present. I
(b) The expressway would dramaticallyreduce travel times between Shanghai and Zhejiang, cutting some 1 to 2 hours off trip duration and producing much greater savings compared with the future, more congested travel on existing roads; this would likely lead to strong traffic generation effects.
4.18 Based on these considerations, two corridor forecasts were adopted: a standardforecast to reflect a likely outcome,and a low forecast for use in sensitivitytests. Traffic growth rates were projectedby class of vehicle, with smallvehicle traffic showing the fastest growth; average growth rates were applied, as follows3/:
STANDARD LOW
1993-1995 21% per year 17% per year 1995-2000 14% 10% After 2000 10% 7%
4.19 Regardingtraffic diversion to the new expressway,two critical factors were considered: (a) the proportion of long-distancetraffic, which would be more inclined to transfer to the expressway,and (b) the comparativeease of travel betweenthe existingroad and the expressway. The proportion of long-distancetraffic is not easy to determine. An origin-destinationstudy conducted as part of the feasibility study concluded that most traffic in the corridor travels over long distances, but this cannot be completely correct: traffic volumes on NR 320 in Zhejiang vary by section between about 8,000 per day and 12,500 per day, indicating significantlocal traffic components. Regarding comparative ease of travel, the expressway has clear advantages over NR 320 for only very long- distance traffic, and for short-distancetraffic in the sectionsnear Shanghaiand Hangzhou. Until serious congestiondevelops, the two routes are fairly similar along the main central section of the corridor.
3/ The trafficgrowth rates assumedfor analysisare significantlylower than actualrecorded rates in the past severalyears. See also para 4.48. - 54 -
4.20 The feasibilitystudy assumed unrealisticallyhigh diversion rates averaging 80 to 90 percent and reaching 98 percent on some sections (i.e., leaving almost no traffic on the existing road), with lower rates of 60 to 85 percent when tolling of the new expressway was assumed. For the analysis in this report, two diversion rates were adopted: a standardrate of 67 percent for all medium-and long-distancetraffic, and a low rate of 33 percent for sensitivity tests. With tolling, these diversion rates would be decreased (para 4.33).
4.21 On this basis, traffic projections were prepared both for traffic remaining on the existing highway and for traffic diverted to the new expressway (Table 4.3). Additionalgenerated traffic was added to the new highway at the rate of 5 percent of the diverted traffic. Traffic projectionson the existinghighway in the case without the project assumed that growth would be restricted by the capacity limits of the existing road; this suppressed demand would be released with the opening of the new highway and was treated as additionalgenerated traffic.
4.22 Economic Analysis. The economic benefits of the Expressway derive principallyfrom the savingsin travel time and cost for existing and projected traffic, and from the additional economicdevelopment brought about by the improved road facility. All these benefits are conventionallyestimated by analyzingchanges in vehicle operating speeds and costs brought about by the new road. Discounted cost-benefit tables were prepared under alternativeassumptions; in each case, the EconomicInternal Rate of Return (EIRR) and First-Year Rate of Return (FYRR)in the year of opening were comparedwith the test discount rate of 12 percent used for China projects to assess feasibility. The evaluation considered traffic congestion, project benefits, construction costs, tolling, the impact of the Road Safety Program (RSP), and sensitivityanalyses.
4.23 Traffic Congestion. For sectionsof the route near Hangzhouand Shanghai, the economic benefits are dominated by the large distance savings provided by a new expressway, ensuring the early feasibilityof these sections of the Expressway under any reasonable assumptionsof traffic growth and traffic diversion rates.
4.24 The situation is less clear for the main central section of the corridor between Yuhang and Fengjing. Modest distance savings of about 9 percent would be captured by long-distancethrough-traffic, with far smaller or even negative impacts for short- and medium-distancetraffic (whichrequires use of the access roads to join and leave the expressway). Geometric alignmentand surface conditions on the expressway would not be much better than NR 320, which is in good conditionand was recently upgraded. Moreover, the Road SafetyProgram componentof the project proposesto provide separate facilities for bicycle and agricultural traffic along this section of NR 320, significantly improvingexisting travel conditions. Hence, the main benefit from the Expresswayin the central part of the corridor would come from providing relatively congestion-free conditions with consequentshorter travel times and lower vehicle operating costs. For these reasons, an analysis of likely congestionlevels on the existing NR 320 was crucial to the economicanalysis. - 55 -
4.25 The results of the congestionanalysis are summarizedin Table 4.4, which shows projected travel times and speeds in the project corridor (excludingroad sections in Shanghaibeyond the project limits) under alternative assumptions. In the absence of the Expressway and the RSP improvements, travel speeds have already declined from an average of about 50 km/h in 1993 to around 35 km/h in February 1995 (much lower than the speed of 47 km/h projected in an exercise done in 1993), and are expected to drop precipitously to less than 13 km/h by 2005, suggestinga fourfold increase in travel times over 1993conditions. By then, existinghighway capacity limits would have been reached, effectively cutting off further growth in traffic. In practice, some of the traffic would move to other roads, including Provincial Highway 01, and traffic would continue to spread into the non-peakhours, includingmore nighttimetravel. Both these actions would impose additional unquantified costs that would tend to increase the benefits of the expressway.
4.26 Speeds would be improved somewhatby the RSP, reducingcongested travel time in the corridor from 7 to 6 hours by the year 2001. While not a very large impact, by reducing congestionlevels, the RSP does reduce the economicbenefits associatedwith the expressway (para 4.34).
4.27 Traffic speeds on the new expressway would remain substantiallyabove speedson the existing road, startingat around 70 km/h at opening, but also decliningwith increasing traffic volume to 63 km/h by 2010. After this, speeds could be expected to drop sharply. This strongly suggests that the policy of making provision for future expansion to six-lane standard in the initial stages of construction is well-advised. However, the case for later expansion has not been evaluated here. The timing of any later expansion would ultimatelydepend on traffic growth rates actually achieved on the 4-lane expressway.
4.28 Project Benerits. Project benefits were estimatedbased mainlyon savings in vehicle operating costs and savings in travel time; average operating costs by vehicle class for the existing road and the new expressway are shown in Table 4.5. These estimates of vehicle operatingcosts were increased for congested highways to reflect the lower traffic speeds and greater frequency of speed-changecycles characteristicof these operatingconditions. The evaluationalso assumed that the very high proportion of night time traffic would be reduced (since long-distancetraffic would no longer have to travel at that time to avoid congestion), returning the corridor to a more normal traffic distribution.
4.29 Construction Costs. Financial costs for construction of the Expressway were estimated at Y 5,757 million, including allowances for physical and price contingencies, and resettlement (Table 4.6). Economic costs of Y 4,171 million were estimated from the financial costs by deducting taxes and price contingenciesand then, based on recent analysesby the World Bank, increasedby 5 percent to reflect the shadow prices of project componentsfor highway projects.
4.30 For evaluationpurposes, the main part of the Expresswayis assumed to take about fifty months to construct, openingin the year 2000. An advance contractingsection - 56 - from Hangzhou to Yuhang is assumed to open by the year 1998 4/. Additional costs are anticipated in years five and fifteen for remedial pavement works (much of the expressway would be built in soft-soil areas) and for major periodic maintenance. Annual costs of highway maintenance and toll operations have also been included.
4.31 Evaluation without Tolls. The three sections of the Expressway were first evaluated without tolling. For this case, construction costs were reduced by Y 180 million to eliminate toll facility costs, and the recurrent costs of toll collection operations were omitted. The resulting EIRR of the complete Expressway is 35 percent, with an FYRR in 2001 of 25 percent (Table 4.7).
4.32 Evaluation with Tolls. It is intended that the highway be operated as a toll road, which would involve higher costs of construction and operation, due to the toll facilities, and a loss of potential benefits. The performance of major toll road projects in China has not been consistent to date. In the north of China, traffic levels have been lower than expected, generating disappointing toll revenues. In the south, the experience on certain expressways in Guangdong Province has been more encouraging, with high traffic growth rates on recently opened expressways and better potential for cost recovery. Given the high economic growth in the Shanghai-Hangzhou corridor, and the likely growth in congestion on the existing road network, it is expected that tolling on the proposed Expressway would generate significant revenues. Tolling would impact the project benefits, but its effect cannot be determined with reasonable confidence until toll levels are determined 5/ (para 3.22).
4.33 Imposition of tolls would have the effect of reducing traffic volumes along the Expressway, but each component of traffic would be affected differently. Long- distance traffic using the new highway would be the least likely to be affected, since the savings afforded by the new highway compared with the existing road are considerable and would not easily be offset by tolls. For medium- and short-distance traffic, the choice of route, old or new, depends on the balance between shorter, but congested, travel on the existing road versus longer distances (including travel on access roads) but less congested travel via the new highway. The addition of tolls to the new highway would reset the balance point in choosing between the old and the new route, and could be expected to deter significant short-distance traffic from using the new highway. Since the benefits of the new highway accrue mostly to longer-distance traffic, it can be expected that the drop in traffic on the new highway due to the imposition of tolls is likely to be greater than the drop in benefits. The toll road evaluation assumes that traffic volumes under tolled conditions (for example, if tolls were set at no more than 30 percent of attributable cost savings) would be lowered by about 17 percent, but that benefits would be lowered by only 14 percent. Evaluation as a toll road indicates a reduction in economic return, with an EIRR of 32.8 percent and an FYRR of 21 percent for the entire expressway (Table 4.8).
4/ This comprises the Pengbu-Wengmei section, already under construction, and additional works in Yuhang, to begin in early 1996. About 4 km of the section would open with the main expressway; the evaluation assumed an earlier incidence of costs for this section.
5/ Toll levels in China are typically set just before opening of a new expressway. - 57 -
4.34 Impact of the Road Safety Program. The Road Safety Program (RSP) is intended to improve sections of the existingNR 320 betweenYuhang and Fengjingby the addition of separate lanes for slow-moving bicycles and agricultural vehicles and the improvementof intersection layouts. While the primary intent of the RSP is to reduce traffic accidents, a beneficial side effect would be improvement of traffic flows on NR 320; this in turn would reduce the benefits associated with the Expressway and could postpone the optimum date of opening. Analysis showed that the FYRR for the Yuhang- Fengjingsection of the expresswaywould be indeed be reducedconsiderably, to 7 percent comparedwith 16 percent in the standardtolled case. However, the EIRR remains above the 12 percent test discountrate. The EIRR of the expresswaywould be 32.5 percent and the FYRR would decline to about 18% (Table 4.9) as compared with the tolled case without Road Safety Program improvementspresented in Table 4.8 (para 4.33).
4.35 Sensitivity Tests. As noted above, the evaluationresults for the proposed project depend critically on the assumptions regarding traffic growth in the Shanghai- Hangzhou corridor, and the rate of traffic diversion to the new expressway. Alternative lower rates developed for each of these parameterswere used in the sensitivityanalyses. The sensitivitytests in all cases assumed tolling. The worst case for the expressway(i.e., with the Road Safety Program in the parallel highway, low diversion, and low traffic growth) is shown in Table 4.10, and the results of the full range of sensitivity tests are summarizedin Table 4.11.
4.36 In none of the sensitivitytests for the expresswayas a whole did the EIRR drop below 14 percent, includingthe worst case scenario that combined constructioncost increases of 50%, benefit reduction caused by lower traffic growth, and lower diversion to the new expressway. However, the FYRR did drop below the test discount rate of 12 percent in certain cases, indicating a possible case for postponement of construction. Of these economic factors, low traffic growth rates had the largest effect, but on their own would postpone the optimum opening date by two years for Fengjing-Songjiangsection, and by several years for the Yuhang-Fengjingsection, running parallel and close to the central section of NR 320 (with the RSP in place) in Zhejiang. Low diversionproduces balancing impacts: while less traffic uses the expressway, it enjoys a higher unit benefit as a result of the more traffic and more congestionon the existing road. Because of this, a low diversion rate on its own would postpone the optimum opening date of only the Yuhang-Fengjingsection by three years. Taking low traffic growth and a low diversion rate together has the greatest impact, and would postpone the optimum opening date for all three sections of the Expresswayby between one and several years.
4.37 Conclusions. Based on current expectationsof traffic growth, the evaluation shows that the Shanghai-HangzhouExpressway is economicallyfeasible if built to four-lane standard on the proposed schedule of construction and operated as a tolled facility. Constructionto six-lanestandard would not be warranted in the first instance, but the very high traffic growth rates prevailing in the region support making provision for later expansion. - 58 -
C. EVALUATION OF THE ROAD SAFETY PROGRAM
4.38 The civil works subcomponentof the Road Safety Program comprises the upgradingof about 86 km of NR 320 to provide separate lanes for bicycle and agricultural vehicle traffic, and improvementof layouts for some 180 side road intersections. The area selected for these investmentslies entirely withinJiaxing Prefectureof ZhejiangProvince, and essentially comprises the central section of NR 320 between Fengjing and Yuhang. The characteristicsof the existingroute, includinggeometric standards,past traffic growth (Table 4.1), future traffic projections(Table 4.3), and estimatesof traffic speed both with and without the Road Safety Program (Table 4.4), were described earlier in connection with the Shanghai-HangzhouExpressway evaluation.
4.39 Evaluation Procedures. Project benefits derive from three sources: vehicle operatingcost savings, travel time savings,and traffic accidentsavings. Vehicleoperating cost and travel time savings were estimated on the same basis as for the expressway, in fact using an identical evaluationmodel since the Road SafetyProgram involves sections of the same roads as the Expressway evaluation. Congestion effects dominate, and considerablebenefits can be attributed to the Road Safety Program through improvements in traffic operating conditions.
4.40 Traffic Accident Savings. Consideration was given to estimating the number of traffic accidents, the economic cost of traffic accidents, and the accident reductionlikely to be brought about by the RSP. Traffic accidentrecords indicate that the numberof traffic accidentson NR 320 is growingat about the same rate as traffic; in other words, the traffic accident rate in terms of accidents per vehicle-km is constant. Total accidentson NR 320 in Jiaxing in 1993 were as follows:
Fatal 265 Injury 361 Damage only 241
Based on available statistics, the ratio of slight to serious accidentswas taken as 3:1.
4.41 For the purposes of evaluation, it was assumed that traffic accidents on NR 320 would continue to grow in proportion to the growth in traffic. On this basis, traffic accidents would continue to grow up to year 2000, drop upon opening of the Shanghai-HangzhouExpressway in early 2000, and continue to grow thereafter. It was assumed that the standard rate of diversion to the new expressway would apply (i.e., 67 percent of all medium- and long-distancetraffic) which is a worst-case scenario for estimating RSP benefits.
4.42 Regarding accident reductions brought about by the project, experience elsewhereindicates that a 40 percent reductioncould be achieved through the intersection improvementsalone. Little data is available on the impact of providing separate traffic lanes for slow-movingvehicles, but significant accident reductions should be achieved. For this evaluation, a reductionin accidentsof 60 percent for the total RSP was assumed. - 59 -
4.43 Little research has been done on the cost of traffic accidents in China. Official statistics undervaluethese costs by consideringonly the direct costs of damage to vehicles together with compensation(if any) paid to individualsand families. A thorough economic valuation should include much more, including the full range of social costs associated with providing emergency and medical services and the loss of economic productivityresulting from injuries or death. The most recent comparableestimates of the economic cost of accidents were made in 1987 as part of the China Road Safety Project (SichuanPilot Study) under the Bank-financedHighway Project (Loan 2359-CHA/Credit 1594-CHA). Accident costs derived in Sichuanin 1987 were updatedfor evaluationof the proposed Road Safety Program. Since the componentsof accident cost are very person- intensive (productive work time lost, cost of medical and emergency services), unit costs of accidents rise both with per capita GDP as well as with inflation. On this basis, economic unit accident costs have likely risen by about three times since the Sichuan estimates were made. The updatedcosts used for 1993 were as follows:
Fatal Y 65,600 Serious injury Y 18,160 Slight injury Y 3,400 Damage only Y 1,700
It was assumed that the unit cost of accidents would continue to grow in line with the economy;a conservative5 percent per year growth in costs was assumed for this analysis.
4.44 Construction Costs. Estimates of construction costs for the RSP were derived using the same approach as for the expressway (para 4.29). Total financial costs of construction were estimated at Y 247 million, and economic costs at Y 180 million (Table 4.6). It is expected that works under the RSP can be completed by the end of 1997, with constructionundertaken in nine separate packages.
4.45 Evaluation Results. The results of the evaluationare set out in Table 4.12. The EIRR is estimatedat 54 percent, with a first year rate of return (FYRR)of 79 percent, providing good economicjustification for the proposed RSP investments. Sensitivitytests with (a) cost overrun of 50 percent, (b) lower than expected traffic growth, and (c) accident reductionof 40 percent and 20 percent instead of the assumed 60 percent used in the base case may be seen in Table 4.13. Even in the worst case scenario involving cost increases, lowest level of accident reduction (20 percent), and lower traffic growth reducing the benefits considerably, the EIRR is over 19 percent, well above the test rate of 12 per cent, justifying the RSP. The FYRR in this worst case scenario is estimated at about 19 percent, justifying implementationof the RSP in the time frame proposed. The evaluation is dominated by the vehicle operating cost savings and the RSP would be justified based on these savings. However, considerationof traffic accident savings alone would also be sufficientto justify the RSP. - 60 -
D. SUMMARY OF EVALUATIONAND ASSESSMENTOF PRoJEcT RISKS
4.46 The comparison of costs and benefits for the project as a whole yields an overall EIRR of 33.4 percent (Table 4.14). The overall evaluationtakes into accountcosts and benefits of both the new Shanghai-HangzhouExpressway, that creates substantial additionaltraffic capacity,and the road improvementsunder the Road Safety Program, that further enhance highway capacity in the project corridor.
4.47 The comparisonof benefitsand costs for the Shanghai-HangzhouExpressway component alone (the expressway operation under tolled conditions, without road safety improvementsin the corridor), yields an EIRR of approximately32.8 percent (Table 4.8). The result is influenced by the assumptions on traffic growth and the rate of traffic diversion to the new expressway, both of which are difficult to assess under the current conditionsof very rapid economicgrowth. However, the evaluated EIRR is well above the test discount rate of 12 percent, and would remain so even with quite different assumptionson traffic growth and traffic diversion.
4.48 Assumptionson traffic growth and diversiondo have a significantaffect on the optimum timing of the project, currently proposed for opening by 2000. Therefore, the main risk is for slower traffic growth than anticipated,so that the planned expressway constructionschedule proves premature. This is consideredunlikely, and not a sufficient reason to delay construction. In fact, postponing construction would lead to a more damaging risk of extreme congestion developing in the Shanghai-Hangzhoucorridor, sufficient to seriously impede future economic growth. It can be noted that the conservative traffic growth assumed for the economic analysis above represents a significant reductionin the traffic growths actually recorded over the past seven years.
4.49 Based on the standardtraffic growth rates used for the economicevaluation, the analyses indicatethat expansionof the expresswayfrom four-lane to six-lane standard could be required by 2010. There is a risk that the extremely high current traffic rates may continue longer than anticipated,sufficient to justify a six-lane standardfor the initial construction. However, there is uncertainty over future traffic growth rates such that initial six-lane constructioncould not be warranted. The most advisableapproach appears to be the one adopted, of facilitatinglater expansion of expressway capacity by proper design and certain advance works.
4.50 Becauseof the difficult subsoilconditions in sections of the alignment of the Shanghai-HangzhouExpressway, there is a risk of delay in the completion of the expresswayand of reducedquality of the finishedpavement. However, ZhejiangProvince (where most of the soft soils occur) is gaining experienceof treating soft soils on the very similar Hangzhou-NingboExpressway now in constructionunder Bank financing, so the risk is reduced. Shanghai Municipality has also had relevant experience during constructionof the Xinzhuang-SongjiangExpressway.
4.51 The comparisonof costs and benefits for the Road Safety Program yields an estimatedEIRR of 54 percent. Lower-than-anticipatedtraffic growth would reduce the rate of return, but it would remain well above the test rate of 12 percent under all foreseeable - 61 - circumstances. Implementationof the RSP is expectedto be well within the capabilityof Zhejiang Province and little risk is anticipated. There is a risk that the traffic accident savings would not be as great as anticipated, or might require some modificationsafter opening, but in a pioneering effort such as this one, some risk is necessary in seeking effective solutions. Also, the proposed works would be worthwhileeven on the grounds of improving traffic operations.
4.52 Based on Bank experience with ongoing highway projects, there is significantrisk of delay in project implementation. However, both ShanghaiMunicipality and ZhejiangProvince have had experiencewith Bankinfrastructure projects, which should help implementation of the proposed project. Project preparation has also benefited substantiallyfrom the Bank's previous experiencewith similar highwayprojects in China, including the Zhejiang Provincial Highway Project, still under implementation. Preparation has also benefited from the active involvementof MOC, the participation of foreign experts in the design of project components and the preparation of bidding documentsand technical specifications,the stringentcriteria used for the prequalification of contractors and the careful formulationof supervision arrangementsto ensure regular monitoringof implementationand effective quality control. - 62 -
5. AGREEMENTS REACHED AND RECOMMENDATION
5.1 Agreementwas reached at negotiationswith the Borrower that:
(a) The proceeds of the loan will be made available to Shanghai Municipalityand Zhejiang Province on the same terms as those of the Bank loan, with Shanghai Municipality and Zhejiang Province bearing the foreign exchange risk (para 3.60); and
(b) The project accountsand the Special Accounts, includingSOEs, will be audited by independentauditors acceptableto the Bank, and that audit reports will be sent to the Bank for review within six months of the close of each fiscal year. The audit report will contain a separate opinion on the SOEs (para 3.88).
5.2 Agreement was reached at negotiations with Shanghai Municipalityand Zhejiang Province that:
(a) ShanghaiMunicipality and Zhejiang Province will jointly prepare, discuss with Municipal, Provincial, and Central governments and submit to the Bank by December 31, 1995, a plan for coordinated management of the Shanghai- Hangzhou Expressway, including description of toll operations, toll setting arrangements, and measures to facilitate interprovincialtraffic movement (para 3.22);
(b) by December31, 1998, ShanghaiMunicipality and ZhejiangProvince will submit to the Bank an analysis of recommendedtoll levels for the Shanghai-Hangzhou Expresswayand will confirmthe organizationalarrangements for the Expressway (para 3.22);
(c) Supervisionteams with qualifiedstaff in adequatenumbers will be maintainedto ensure that works are carried out in accordancewith technical specificationsand that strict quality controls are exercisedon site (para 3.24);
(d) Prior to commencingupgrading of any section under the Road Safety Program and as a condition of disbursement, the Bank will receive and approve informationon the design, technical aspects, constructionsupervision, and layout plans for junctions, as well as a report containing an assessment of the likely impact of the works on road safety (para 3.30);
(e) Monitoring reports in a format agreed with the Bank will be prepared quarterly to measure the impact of the road safety improvementsunder the subprojectsof the Road SafetyProgram in ZhejiangProvince and will be submittedto the Bank for review (para 3.31); - 63 -
(f) All training under the project will be carried out under terms of reference and in a manner satisfactoryto the Bank and, by September30 of each year beginning in 1996, Shanghai Municipalityand ZhejiangProvince will submit to the Bank for approval a plan for the next two calendar years of training under the expresswayand Road Safety Program componentsof the project (para 3.32);
(g) Regardingthe environmentaland resettlementactivities under the project, (i) all EAPs will be implementedin a manner acceptableto the Bank (Annex 3), (ii) the resettlement of people affected by the Shanghai-HangzhouExpressway and subprojects under the Road Safety Program (Annex 4) will be carried out according to RAPs agreed with the Bank, (iii) internal and independent monitoring of resettlement will be carried out against the agreed RAPs and regular monitoring reports regarding the implementation and impact of resettlementwill be provided to the Bank, and (iv) any proposed revision of the RAPs will be furnishedto the Bank for its prior approval (paras 3.37, 3.38, 3.51 and 3.53);
(h) The project implementingagencies for the Shanghai-HangzhouExpressway and Road Safety Program componentswill at all times be staffed with qualified staff in adequate numbers (para 3.63);
(i) ShanghaiMunicipality and ZhejiangProvince will, by September30 of each year beginning in 1996, submit to the Bank a detailedimplementation plan, covering all aspects of the project, includingenvironment and resettlement for activities during the coming year, and will thereafter carry out such work taking into account comments made by the Bank (para 3.64); and
'i) ShanghaiMunicipality and ZhejiangProvince will each furnish quarterly progress reports to the Bank and will each prepare an ImplementationCompletion Report no later than six months after the loan closing date (para 3.89).
5.3 As a condition of effectiveness, Shanghai Municipality and Zhejiang Province would each enter into a legally-bindingagreement with internationalconstruction supervision consultants for supervision of construction of the Shanghai-Hangzhou Expressway (para 3.23).
5.4 Subjectto the foregoing, the proposedproject would be suitable for a Bank loan of $260 million to the People's Republic of China. The loan would be for a term of 20 years, includinga grace period of 5 years, at the Bank's standardvariable interest rate. - 64 -
Table 1.1: Traffic Turnover by Mode, 1980-1993
Turnover Volume of Freight Traffic (billion ton-kn)
Civil and Gas Year Total Railway Highway Waterway Aviation Pipelines
1980 1,202.60 571.69 76.40 505.28 0.14 49.10
1990 2,620.70 1,062.24 335.81 1,159.19 0.82 62.70
1993 3,051.00 1,195.46 407.05 1,386.08 1.66 60.80
Compound annual growth rate, 1980- 1993 7.42% 5.84% 13.73% 8.07% 20.89% 1.66%
Compound annual growth rate, 1990- 1993 5.20% 4.02% 6.62% 6.14% 26.53% -1.02%
Turnover Volume of Passenger Traffic (billion passenger-kin)
Civil Year Total Railway Highway Waterway Aviikn
1980 228.1 138.316 72.95 12.91 23X
1990 562.8 261.263 262.032 16.491 230D
1993 785.8 348.33 370.07 19.645 47.76
Compound annual growth rate, 1980- 1993 9.98% 7.36% 13.31% 3.28% 21 16
Compound annual growth rate, 1990- 1993 11.77% 10.06% 12.20% 6.01% 270 - 65 -
Table 1.2: Road Accident Risks in Various Countries, 1993
Population Number of Vehicles per Number of Fatalities per Fatalities per ('000) /a Vehicles 1,000 Fatalities 10,000 100,000 Country ('000) /b Population (Person) Lc Vehicles Population
CHINA 1,185,170 13,823 12 63,551 46.0 5.4
Shanghai 13,490 321 24 699 21.7 5.2 Zhejiang 42,660 810 19 4,913 60.7 11.5
Brazil 153,900 13,469 88 5,500 4.1 3.6 Canada/d 27,400 20,632 753 3,485 1.7 12.7 Costa Rica 3,200 396 124 235 5.9 7.3 Denmark 5,200 1,991 383 573 2.9 11.0 Egypt/d 54,700 1,986 36 4,315 21.7 7.9 France 57,400 32,440 565 9,052 2.8 15.8 Germany/d 80,600 43,826 544 10,643 2.4 13.2 Hungary/d 10,300 2,510 244 4,577 18.2 44.4 India/e 883,600 16,479 19 54,058 32.8 6.1 Indonesia/e 184,300 8,889 48 10,887 12.2 5.9 Japan 124,500 79,761 641 10,942 9.6 8.8 Mexico/d 85,000 11,368 134 5,252 4.6 6.2 Norway 4,300 2,981 693 281 0.9 6.5 Pakistan 119,300 2,279 19 6,299 27.6 5.3 Poland 38,400 9,247 241 6,341 6.9 16.5 South Korea 43,700 8,210 188 10,402 12.7 23.8 Spain/d 39,100 19,128 489 6,014 3.1 15.4 Thailand 58,000 10,243 177 9,496 9.3 16.4 Turkey 58,500 5,648 97 6,444 11.4 11.0 UK 57,800 25,448 440 4,229 1.7 7.3 USA/d 255,400 195,706 766 39,235 2.0 15.4 Zimbabwc/d 10,400 377 36 1,021 0.1 9.8
La Mid -1992 population; World DevelopmentReport, 1994,pp. 162 -3. /b Analysisof accident rates may be limitedby the fact that number of vehiclessometimes includes onlymotor vehicles. However, figures vehicleshave been adjusted to include non-motor vehicleswhere data was available. Provincial data on the incidence of accidents is based on motor vehiclesplus tractors and motorcycles;however, does not includebicycles or other vehiclesthat may contribute to the rate of accidents. /c World Road statitics 19S9-1993,International Road Federation /d Data for 1992. /e Data for 1990. Table 1.3: CalNA: BANK GROUP-FINANCEDTRANSPORT PROJEcEs
Loan/ Loan amount, (credit) Board Date Closing S million (SAR) Projoct name number date effective date Bank IDA Status
RAILWAYS Railway Project 2394 03/27/84 07/10/84 12/31/90 220.00 CLOSED Second Railway 2540 05/14/85 11/22/85 06/30/94 235.00 ONGOING Third Railway 2678/(1680) 04/15/86 01/13/87 06/30/93 160.00 70.00 ONGOING Fourth Railway 2968 06/23/88 03/27/89 12/31/93 200.00 ONGOING Inner Mongolia Local Railway 3060/(2014) 05/12/89 01/03/90 12/31/96 70.00 80.00 ONGOING Fifth Railway 3406 09/24/91 01/09/92 12/31/98 350.00 ONGOING Sixth Railway 3581 03/25/93 12/31/99 420.00 ONGOING
Subtotal 1.655. 150.00
Total Loan and Credit Amount 1.805.00
HIGHWAYS 0% Highway Project 2539/(1594) 05/14/85 12/04/85 06/30/91 42.60 30.00 CLOSED Beijing-Tianjin-Tanggu Expressway 2811/(1792) 05/12/87 12/08/87 12/31/92 25.00 125.00 ONGOING Sichuan Provincial Highway 2951/(1917) 06/09/88 05/31/89 12/31/94 75.00 50.00 ONGOING Shaanxi Provincial Highway 2952 06/09/88 05/31/89 12/31/94 50.00 ONGOING Jiangxi Provincial Highway (1984) 02/07/89 05/31/89 12/31/95 61.00 ONGOING Shangdong Provincial Highway 3073/(2025) 05/25/89 12/11/89 06/30/95 60.00 50.00 ONGOING Zhejiang Provincial Highway 3471 05/19/92 09/02/91 12/31/96 220.00 ONGOING Guangdong Provincial Highway 3530 11/17/92 04/16/93 06/30/99 240.00 ONGOING Henan Highway 3531 11/17/92 04/16/93 06/30/98 120.00 ONGOING Fujian Highway 3681 12/14/93 07/24/94 06/30/200 140.00 ONGOING National Highway 3748 06/07/94 10/24/94 06/30/2000 380.00 ONGOING Xinjiang Highway 3787 08/30/94 02/09/95 12/31/2000 150.00 ONGOING
Subtotal S02.60 316.00
Total Loan and Credit Amount 1.818.60
... Connrd Table 1.3: (cont'd)
Loan/ Loan amount, (credit) Board Date Closing $ million (SAR) Project name number date effective date Bank IDA Status
PORTS AND WATERWAYS Tlhree Ports 2207 11/02/82 02/02/83 06/30/88 124.00 CLOSED Tianjin Port 2689 05/06/86 03/20/87 12/31/92 130.00 ONGOING Huangpu Port 2877/(1845) 10/06/87 10/03/88 12/31/93 63.00 25.00 ONGOING Dalian Port 2907/(1975) 02/09/88 10/03/88 12/31/93 71.00 25.00 ONGOING Ningbo and Shanghai Ports 3006 12/13/88 05/09/89 12/31/93 76.40 ONGOING Xiamen Port 3007 12/13/88 01/09/90 03/31/94 36.00 ONGOING Ship Waste Disposal 2391 06/17/92 06/30/96 15.00 ONGOING Shanghai Port Restructuring and Development 3552 12/22/92 06/30/99 150.00 ONGOING
Subtotal 650.40 65.00
Total Loan and Credit Amount 715.40
MULTIMODAL Jiangsu Provincial Transport 3316/(2226) 04/09/91 09/06/91 06/30/96 100.00 53.60 ONGOING
Total Loan and Credit Amount 153.60
URBAN TRANSPORT Shanghai Metropolitan Transport (2296) 09/10/91 09/10/91 06/30/98 60.00 ONGOING Second Shanghai Mctropolitan Transport 3652 10/14/93 150.00 ONGOING
Total Loan and Credit Amount 210.00
GRAND TOTAL 4,702.60
Souwrce:Compiled by the niiion. - 68 -
Table 2.1: ECONOMICDATA, 1992
GOVAI /a Rer capita Population GOVAI /a As a multiple of (million) (Y billion) (Y) national average
China (national total) 1.171.7 4.615.0 3.939 1.0
Shanghai Municipality 12.9 250.9 19,450 4.9 Songjiang County 0.5 6.2 12,400 3.1
Zhejiang Province 42.9 276.3 6,445 1.6 Northeast Zhejiang 21.8 202.8 9,293 2.4 Hangzhou 5.8 63.6 10,931 2.8 Shaoxing 4.2 32.6 7,813 2.0 Ningbo 5.2 52.7 10,199 2.6 Jiaxing 3.2 29.3 9,137 2.3 Huzhou 2.5 18.6 7,480 1.9 Southwest Zhejiang 21.0 73.5 3,492 0.9 Wenzhou 6.8 23.1 3,408 0.9
Other Provinces Sichuan Province 110.0 259.5 2,359 0.6 Jiangxi Province 39.2 94.5 2,410 0.6 Shaanxi Province 34.1 80.5 2,364 0.6 Xinjiang Autonomous Region 15.8 49.0 3,097 0.8 Shandong Province 86.1 439.4 5,104 1.3 Guangdong Province 65.3 421.7 6,462 1.6 Jiangsu Province 69.1 534.7 7,737 2.0
/a Gross Output Value of Agriculture and Industry
Sources: China Statistical Yearbook 1993; Shanghai Statistical Yearbook 1993; and Zhejiang Statistical Yearbook 1993. Table 2.2: DEMOGRAPHIC AND TRANSPORT NETWORK DATA, 1992
Total Number of Number of Transport network leneth Network density number of vehicles per vehicles per Population Area Road Rail Water Road Rail Water vehicles thousand kilometer 2 (million) ('000 km) -('000 km)------('000 km)---- ('000) population of road
China (national total) 1.171.7 9.600.0 1.056.7 53.6 109.7 110.1 5.6 11.4 6.061 5.2 5.7 Shanghai Munici- pality 13.4 - 3.6 0.2 2.1 - - - 184 13.7 51.2
Zheiiane Province 42.9 101.8 32.8/a 0.9 10.6/a 322.6/a 8.5 104.0 251/a 4.0 7.7/a Other Provinces Sichuan Province 110.0 560.0 98.9 2.9 7.9 176.6 5.1 14.1 342 3.1 3.5 Jiangxi Province 39.1 160.0 34.0 1.6 4.9 212.5 9.9 30.9 113 2.9 3.3 Shaanxi Province 34.1 190.0 38.3 1.8 1.0 206.8 9.6 5.3 150 4.4 3.9 Xinjiang Autono- mous Region 15.8 1,200.0 26.0 1.3 0.0 21.7 1.1 0.0 145 9.2 5.6 Shandong Province 86.1 150.0 43.1 2.1 1.9 287.3 13.7 12.4 427 5.0 9.9 Guangdong Province 65.3 177.9 55.9 0.7 10.9 314.2 3.8 61.0 476 7.3 8.5 Jiangsu Province 69.1 100.0 25.3 0.7 23.7 253.0 7.4 236.8 305 4.4 12.1
/a Data for 1993.
Source: China Statistical Yearbook 1993. - 70 -
Table 2.3: CLASSFCATIONOF ROADNETWORK IN SHANGHAIAND ZHEJIANG (1981-93)
1981 1985 1993 Total Paved Total Paved Total Paved
Classification of Shanghai Roads (km)
Expressway - - - - 36 36 Class I - - - - 47 47 Class 2 136 136 62 62 308 308 Class 3 1,073 1,073 1,160 1,160 1,941 1,941 Class 4 808 645 778 594 1,274 1,274 Unclassified 70 0 58 0 18 0
Total 2,087 1.854 2,058 1.816 3.625 3.607
Classification of Zheiiang Roads (kIm)
Expressway - - - - 7 7 Class1 - - - - 0 0 Class 2 311 NA 393 393 1,736 1,736 Class 3 813 NA 1,339 1,139 2,719 2,719 Class 4 11,254 NA 15,550 1,729 19,292 2,562 Unclassified 10,389 NA 8,329 0 7,098 64
Total 22.767 2.368 25.611 3.261 30.852 7.088
Sources: Shanghai Municipal Engineering Administration Bureau Zhejiang Provincial Transport Department Table 2.4: SHANGHAIAND ZHEJIANG: FREGHT AND PASSENGER TURNOVER BY MODE, 1982-92
Freight turnover (million ton-km) Passenger turnover (million passenger-km) Highways % Railways % Coastal % Total Highways % Railways % Coastal % Total and inland and inland waterways waterways
Shanehai 1982 897 0.5 8,800 5.1 163,900 94.4 173,597 2.2 8.6 18.5 72.5 4.8 18.8 25.5 1983 954 0.5 8,900 5.0 167,900 94.5 177,754 2.8 10.1 20.0 71.6 5.1 18.3 27.8 1984 1,031 0.6 9,700 5.3 173,900 94.2 184,631 3.4 11.0 22.3 72.2 5.2 16.8 30.9 1985 1,107 0.5 10,200 5.1 190,200 94.4 201,507 4.1 12.2 23.2 69.3 6.2 18.5 33.5 1986 1,342 0.6 10,500 4.5 222,500 94.9 234,342 5.0 13.9 24.8 68.9 6.2 17.2 36.0 1987 1,363 0.5 10,600 4.0 254,000 95.5 265,963 7.1 17.8 26.1 65.6 6.6 16.6 39.8 1988 1,300 0.5 10,500 3.7 270,900 95.8 282,700 7.2 16.6 29.4 67.7 6.8 15.7 43.4 1989 1,147 0.4 11,100 3.6 297,200 96.0 309,447 6.6 16.5 27.1 67.9 6.2 15.5 39.9 1990 1,194 0.4 11,100 3.3 323,600 96.3 335,894 6.1 16.7 24.8 67.9 5.6 15.4 36.5 1991 1,298 0.4 11,200 3.1 348,400 96.5 360,898 6.0 15.9 25.9 68.6 5.9 15.6 37.8 1992 1,300 0.4 12,500 3.4 352,300 96.2 366,100 6.0 15.1 27.5 69.3 6.2 15.6 39.7 Compound annual growth rate, 1982-92 3.8% 3.6% 8.0% 7.7% 10.6% 4.0% 2.6% 4.5% Zheiianf 1982 1,148 5.7 12,049 59.7 6,985 34.6 20,182 5,728 47.5 5,070 42.0 1,265 10.5 12,063 1983 1,358 6.4 12,302 57.9 7,589 35.7 21,249 6,454 47.9 5,746 42.6 1,273 9.4 13,473 1984 1,667 7.2 12,759 54.8 8,841 38.0 23,267 7,686 48.7 6,674 42.3 1,421 9.0 15,781 1985 3,345 11.4 13,254 45.2 12,755 43.5 29,354 10,723 53.3 7,524 37.4 1,886 9.4 20,133 1986 6,814 20.0 13,518 39.6 13,788 40.4 34,120 12,491 56.7 7,843 35.6 1,704 7.7 22,038 1987 8,252 22.4 13,807 37.4 14,862 40.3 36,921 14,585 59.1 8,394 34.0 1,719 7.0 24,698 1988 9,625 23.8 13,650 33.8 17,121 42.4 40,396 15,881 58.9 9,312 34.6 1,750 6.5 26,943 1989 9,275 22.7 14,651 35.8 16,973 41.5 40,899 15,387 59.8 8,763 34.1 1,578 6.1 25,728 1990 10,075 25.1 14,443 36.0 15,547 38.8 40,065 16,687 64.9 7,594 29.5 1,448 5.6 25,729 1991 13,625 29.3 14,495 31.2 18,380 39.5 46,500 19,095 66.8 8,091 28.3 1,399 4.9 28,585 1992 15,883 29.0 16,752 30.6 22,046 40.3 54,681 22,068 68.4 8,783 27.2 1,389 4.3 32,240 1993 16,121 27,844 28,056 1,272 Compound annual growth rate, 1982-92 27.1%/a 3.4% 13.4%/a 10.5% 15.5%/a 5.6% 0.0%/a 10.3%
/a Compound growth rate for 1982-1993 period.
Sources: Shanghai Statistical Yearbook, 1992; and Zhejiang Statistical Yearbook, 1992. - 72 -
Table 2.5: SIIANGHAI: COMPARISONOF FREIGIT ANDPASSENGER VOLUME BY MODE, 1985 AND1993
A. Freight Traffic
1985 1993 Transport Tons Proportion Tons Proportion Compound mode (000) of total (000) of total annual traffic (%) traffic (%) growth rate, 1985-93
Rail 50,590 20.9 60,850 20.0 2.3 % Road 92,160 38.0 91,940 30.3 0.0% Waterway 99,650 41.1 150,640 49.6 5.3% Air 30 0.0 140 0.0 21.2%
Total 242.430 100.0 303.570 100.0
B. Passenger Trafric
1985 1993 Transport Passengers Proportion Passengers Proportion Compound mode (000) of total (000) of total annual traffic (%) traffic (%) growth rate, 1985-93
Rail 23,200 67.6 28,600 65.2 2.7% Road 4,100 11.9 5,200 11.8 3.0% Water 6,220 18.1 6,170 14.1 -0.1 % Air 820 2.4 3,920 8.9 21.6%
Total 34.340 100.0 42.83 100.0
Source: Shanghai StatisticalYearbook, 1993; ShanghaiStatistical Handbook of Shanghai Statistical Bureau, 1994.03. Table 2.6: SHANGHAIAND ZHEIIANG: FREIGHTAND PASSENGER TRAmnC VOLUME BY MODE, 1982-92
Freight volume (thousand tons) Passenger volume (thousand passengers) Highways % Railways % Coastal % Air % Total Highways % Railways % Coastal % Air % Total and iland and inland waterways waterways
1982 78,260 37.0% 45,620 21.6% S7,630 41.4% 20 0.0% 211,530 2,210 8.5% 18,530 71.3% 4,800 18.5% 440 1.7% 25,980 1983 80,520 37.3% 46,270 21.4% 89,130 41.3% 20 0.0% 215,940 2,770 10.7% 19,950 70.6% 5,110 18.1% 420 1.5% 28,250 1984 86,960 37.6% 48,410 20.9% 95,810 41.4% 30 0.0% 231,210 3,430 13.2% 22,280 70.7% 5,170 16.4% 620 2.0% 31,500 1985 92,160 38.0% 50,590 20.9% 99,650 41.1% 30 0.0% 242,430 4,100 15.8% 23,200 67.6% 6,220 18.1% 820 2.4% 34,340 1986 101,260 38.0% 53,060 19.9% 112,350 42.1% 40 0.0% 266,710 5,040 19.4% 24,770 66.6% 6,160 16.6% 1,230 3.3% 37,200 1987 101,590 37.3% 54,840 20.1% 115,920 42.6% 60 0.0% 272,410 7,130 27.4% 26,100 63.1% 6,590 15.9% 1,560 3.8% 41,380 1988 100,190 36.0% 53,220 19.1% 124,800 44.8% 60 0.0% 278,270 7,170 27.6% 28,380 64.4% 6,790 15.4% 1,750 4.0% 44,090 1989 95,260 34.4% 53,030 19.2% 128,260 46.4% 60 0.0% 276,610 6,570 25.3% 27,110 65.5% 6,210 15.0% 1,510 3.6% 41,400 1990 87,140 32.6% 51,860 19.4% 128,640 48.1% 70 0.0% 267,710 6,050 23.3% 24,760 64.6% 5,550 14.5% 1,990 5.2% 38,350 1991 88,880 32.3% 51,690 18.8% 134,850 48.9% 90 0.0% 275,510 5,980 23.0% 25,940 64.3% 5,920 14.7% 2,510 6.2% 40,350 1992 94,270 31.9% 55,270 18.7% 146,070 49.4% 110 0.0% 295,720 5,910 22.7% 27,480 64.2% 6,230 14.5% 3,210 7.5% 42,830
Comnpoundannual growth rate, 1982-92 1.9% 1.9% 5.2% 18.6% 3.4% 10.3% 4.0% 2.6% 22.0% 5.1%
Zhejisg
1982 36,160 33.6% 16,090 15.0% 55,210 51.4% - - 107,460 261,500 72.7% 27,350 7.6% 70,940 19.7% 90 0.0% 359,880 1983 37,280 34.2% 16,810 15.4% 54,860 50.4% - - 108,950 284,680 75.2% 29,190 7.7% 64,610 17.1% 80 0.0% 378,560 1984 39,880 33.9% 17,360 14.7% 60,570 51.4% - - 117,810 308,820 75.6% 32,520 8.0% 66,830 16.4% 100 0.0% 408,270 1985 93,970 42.0% 17,810 8.0% 112,070 50.1% - - 223,850 393,750 74.6% 32,250 6.1% 101,630 19.3% 130 0.0% 527,760 1986 166,800 54.2% 18,930 6.2% 122,020 39.6% - - 307,750 457,590 78.9% 31,260 5.4% 90,660 15.6% 220 0.0% 579,730 1987 194,260 60.1% 19,240 5.9% 109,960 34.0% - - 323,460 495,890 80.8% 32,580 5.3% 85,260 13.9% 300 0.0% 614,030 1988 241,280 64.3% 18,770 5.0% 114,970 30.7% - 375,020 525,600 81.4% 35,950 5.6% 83,820 13.0% 340 0.1% 645,710 1989 243,540 67.0% 19,110 5.3% 100,930 27.8% - - 363,580 487,260 81.9% 34,530 5.8% 72,750 12.2% 230 0.0% 594,770 1990 228,790 68.3% 16,910 5.1% 89,040 26.6% - - 334,740 510,830 84.6% 30,180 5.0% 62,140 10.3% 320 0.1% 603,470 1991 241,620 68.6% 17,730 5.0% 92,630 26.3% - - 351,980 566,610 87.1% 30,400 4.7% 52,860 8.1% 850 0.1% 650,720 1992 289,570 70.4% 19,150 4.7% 102,430 24.9% - - 411,150 627,670 88.4% 30,510 4.3% 50,870 7.2% 1,120 0.2% 710,170
Compound annual growth rate, 1982-92 23.1% 1.8% 6.4% 14.4% 9.2% 1.1% -3.3% 28.7% 7.0%
Sources: Shanghai Skadsnical Yearbook, 1993; Zhei#iangStadsdcal Yearbook, 1993. 74 -
Table 2.7: ZHEJIANG: COMPARISONOF FREIGHTAND PASSENGERVOLUME BY MODE, 1985 AND 1992
A. Freight Traffic
1985 1992 Transport Tons Proportion Tons Proportion Compound mode (000) of total (000) of total annual traffic (%) traffic (%) growth rate, 1985-92
Rail 17,810 8.0 19,150 4.7 1.0% Road 93,970 42.0 289,570 70.4 17.4% Waterway 112,070 50.1 102,430 24.9 -1.3% Air
Total 223.850 100.0 411.150 100.0
B. Passenger Traffic
1985 1992 Transport Passengers Proportion Passengers Proportion Compound mode (000) of total (000) of total annual traffic (%) traffic (%) growth rate, 1985-92
Rail 32,250 6.1 30,510 4.3 -0.8% Road 393,750 74.6 627,670 88.4 6.9% Water 101,630 19.3 50,870 7.2 -9.4% Air 130 0.0 1,120 0.2 36.0%
Total 527.760 100.0 710.170 100.0
Source: Zhejiang Statistical Yearbook, 1993. - 75 -
Table 2.8: ZHEJIANGPROVINCE: TRANSPORTATION SERVICES BY SECTOR Volume of Goods Transported (milliontons)
1985 1987 1988 1989 1990 1991 1992
Communications system Railway 17.81 19.24 18.77 19.11 16.91 17.33 19.15 Highway 23.67 24.04 21.98 19.26 17.90 19.93 21.01 Waterway 45.25 48.96 51.05 46.02 39.59 42.18 46.76
Subtotal 86.73 92.24 91.80 84.39 74.40 79.44 86.92
Factories, mines, enterprises, and institutions Highway 15.38 80.86 111.46 112.38 103.16 109.38 96.23 Waterway 19.47 8.88 11.44 8.49 7.27 7.69 8.36
Subtotal 34.85 89.74 122.90 120.87 110.43 117.07 104.59
Transport by private operators Highway 54.92 89.36 107.84 111.90 107.73 112.70 172.33 Waterway 47.35 52.12 52.48 46.42 42.18 42.77 47.31
Subtotal 102.27 141.48 160.32 158.32 149.91 155.47 219.64
Total 223.85 323.46 375.02 363.58 334.74 351.98 411.15
Turnover of Goods Transported (ton-km)
1985 1987 1988 1989 1990 1991 1992
Communications system Railway 13,254 13,807 13,650 14,651 14,443 14,495 16,752 Highway 1,504 1,642 1,576 1,385 1,326 1,445 1,529 Waterway 8,863 11,214 12,855 13,210 12,001 14,617 17,822 Subtotal 23.621 26.663 28.081 29.246 27.770 30.557 36.103
Factories, mines, enterprises, and institutions Highway 585 4,234 5,431 5,021 5,923 8,896 8,954 Waterway 1,480 898 1,294 1,104 1,099 1,114 1,196
Subtotal 2.065 5.132 6.725 6.125 7.022 10.010 10.150
Transport by private operators Highway 1,256 2,376 2,618 2,869 2,826 3,285 5,400 Waterway 2,412 2,750 2,972 2,659 2,447 2,649 3,028 Subtotal 3.668 5.126 5.590 5.528 5.273 5.934 82 Total 29.354 36.921 40 4089909 40,065 46,501 54.681 - 76 -
Table 2.9: SHANGHAIAND ZHIEJIANG: VEHICLE FLEET, 1984-93
Motorized vehicles Motor- Year Large Small/ Buses Cars Special Subtotal Tractors cycles Total Trucks medium and purpose /a trucks lb vans vehicles
Shanghai MuniciRality
1984 55,657 - 4,724 15,568 - 75,949 3,836 15,538 95,323 1985 77,419 - 5,701 29,483 - 112,603 4,390 17,384 134,377 1986 88,709 - 6,429 38,926 - 134,064 4,902 23,638 162,604 1987 89,297 - 6,226 44,688 - 140,211 21,135 34,966 196,312 1988 92,053 - 6,498 47,644 - 146,195 20,329 35,686 202,210 1989 98,284 - 6,661 53,328 - 158,273 23,111 40,343 221,727 1990 102,786 - 7,206 59,340 - 169,332 23,015 42,598 234,945 1991 110,404 - 13,057 49,467 2,786 175,714 22,906 45,312 243,932 1992 119,685 - 15,272 62,512 2,828 200,297 22,944 56,779 280,020 1993 106,094 - 17,919 99,423 7,670 231,106 22,580 67,795 321,481
Compound annual growth rates 7.4% - 16.0% 22.9% 65.9% 13.2% 21.8% 17.8% 14.5%
Zheiiang Province
1984 39,167 3,197 6,039 6,772 3,649 58,824 102,227 13,486 174,537 1985 46,975 7,265 7,223 13,769 4,286 79,518 62,923 19,348 161,789 1986 54,065 13,121 7,530 15,629 3,558 93,903 79,713 39,622 213,238 1987 60,993 16,330 9,202 25,372 4,875 116,772 249,094 76,766 442,632 1988 63,615 23,470 9,677 31,363 2,813 130,938 202,711 112,969 446,618 1989 70,148 31,698 10,854 36,854 2,821 152,375 212,784 143,951 509,110 1990 72,546 32,782 11,411 38,745 3,032 158,516 213,379 162,557 534,452 1991 76,531 38,002 12,215 42,487 3,489 172,724 214,349 191,116 578,189 1992 77,488 47,798 12,486 58,956 3,769 200,497 227,964 233,210 661,671 1993 90,524 61,789 13,648 78,117 3,769 247,847 237,095 324,654 809,596
Compound annual growth rates 9.8% 39.0% 9.5% 31.2% 0.4% 17.3% 9.8% 42.4% 18.6%
/a Includes trucks over 7-ton capacity in Zhejiang and all trucks in Shanghai. /b Over 25-seat capacity.
Sources: Shanghai Highway Department; Shanghai Traffic Department; and Zhejiang Provincial Expressway Commission. - 77 -
Table 2.10: ROAD SAFETY IN SHANGHAI MUICIPALrY AND ZHEJLANGPROVINCE
ROAD ACCIDENrSIN SHANGHA MumciPALr, 1986-93
Number of Accidents Number of Injuries Number of Fatalities
Shang- Shang- Shang- Fatalities hai Sub- hai Sub- hai Sub- Registered per 10,000 City urbs Total City urbs Total City urbs Total Vehicles vehicles
1986 7,121 5,725 688 162,604 42.31 1987 10,078 6,379 811 196,312 41.31 1988 8,397 5,645 707 202,210 34.96 1989 7,527 4,875 652 221,727 29.41 1990 7,623 4,640 610 234,945 25.96 1991 4,400 3,124 7,524 4,450 594 243,932 24.35 1992 3,571 2,665 6,236 3,568 591 280,020 21.11 1993 5,245 2,806 8,051 2,882 699 321,481 21.74
Com- pound annual growth rate (%) 1.77 -9.34 0.23 10.23 -9.07
ROAD ACCIDENTSIN ZHEJANG PROVINCE,1987-93
Number of Numberof Numberof Fatalities Fatalities Number of Traffic People People per 10,000 per 100,000 Year Population Vehicles Accidents Injured Killcd Vehicles population
1987 41,211,900 442,632 15,986 10,918 3,120 70.49 7.57 1988 41,698,500 446.618 15,301 9,914 3,357 75.16 8.05 1989 42,088,800 509,110 14,081 9,588 2,954 58.02 7.02 1990 42,349,100 534,452 12,853 9,300 3,017 56.45 7.12 1991 42,613,700 578.189 13,595 10,379 3,471 60.03 8.15 1992 42,859,100 661,671 12,729 9,166 4,042 61.09 9.43 1993 42,660,000 809,596 14,494 9,210 4,913 60.68 11.52
Compound Annual Growth Rate 0.6% 10.6% -1.6% -2.8% 7.9% -2.5% 7.2% Table 2.11: TRAmc ACCIDENTSIN SHANGHAISECTION OF PROJECTCORRIDOR
Jinshan County NR 320 in Jinshan Cotuty SonRiian2 County /a NR 320 in Son2iiane County Number Number Number Number Number Number Number Nuamber Number Number Number Number of of of of of of of of of of of of Accidents Injuries Fatalities Accidents Injuries Fatalities Accidents Injuries Fatalities Accidents Injuries Fatalities
1986 1,045 226 45 410 100 20 175 150 16
1987 1,063 257 47 427 104 21 214 140 23
1988 1,102 233 49 446 99 23 289 213 31
1989 S17 230 47 334 95 22 247 173 28
1990 724 317 50 297 108 19 247 185 28
1991 839 420 52 349 131 24 254 160 19 5S 00 1992 925 468 52 389 204 25 276 134 23 77
1993 989 423 65 425 201 26 461 246 21 217
1994 1,021 503 84 511 248 40 540 276 32 169
Compound annual growth rate -0.3% 10.5% 8.1% 2.8% 12.0% 9.1% 15.1% 7.9% 9.1% 42.8%
Sources: Pubic Scculy Bureauof Jinshan County Pulc Secty Buau of Sngliag County - 79 -
Table 2.12: COMPOSMONOF SHANGHAiROAD NETwoRK, 1985-2000 (km)
1985 1990 1993 1995 2000
Expressway -- 36.0 39.4 65.4 120.4 Class 1 - - 84.5 104.5 147.8 Class 2 62.0 233.0 328.9 421.9 721.9 Class 3 1,160.0 1,699.0 1,942.2 1,889.2 1,989.2 Class 4 778.0 1,314.0 1,264.1 1,250.0 1,350.0 Unclassified 58.0 18.4 18.4 18.4 -
Total- 2.058.0 3.300.4 3.677.5 3.749.4 4.329.3
Source: Shanghai Municipal Engineering Administration Bureau
Table 2.13: PROJECTED COMPOSrIIONOF ZHEJIANGROAD NETwoRK (km)
1995 200
Total length of road network 33,731 37,287
Of which: Expressways 158 864 Class II and above 2,659 3,161 National and Provincial roads 7,339 8,396
Source: Zhejiang Provincial Expressway Construction Executive Commission - 80 -
Table 2.14: ZHEJANG:MAJOR ROAD WORKS, 1993-2000 (km)
1993-1995 1996-2000
National roads
Construction Expressways 158.30 705.80 Class I and II roads 119.06 252.20
Reconstruction Class I and II roads 523.57 87.20
Provincial roads Construction Class I and II roads 34.10 36.60/a
Reconstruction Class I and II roads 447.50 367.60
Total km constructionworks 311.46 994.60 Total km reconstructionworks 971.07 454.80
/a Includes widening of Class II roads.
Source: Zhejiang ProvincialExpressway ConstructionExecutive Commission Table 2.15: SHANGHAi: HiGHwAYDEvELPMENT PROGRAM. 1986-2000 Name Period Scale/Description EstimatedInvestment (km) C~~~~~~~~~~~~~~~~~~~~~~~~~~~_ost(Y nmillion) |
Hutai Highway 28.6 I 1992-95 4 fast lanes. 2 slow bicycle lanes 480 Huyi Highway (NR 204) 34.0 U Project delayed until 2000 (Current pavement width: 9 m) 220
Shanghai-Jiading Expressway 15.9 Xway 1984-88 (open to traffic since Nov. 1988) 4 lanes in 2 directions, limited access, 220 (Completed) interchanges (on all exits)
Shanghai-Jiading Expre ssway, 6.5 Xway 1991-93 (open to traffic since Dec. 1993) 4 lanes in 2 directions, some controlled Eastern Extension (Conwleted) access. interchanges on some exits Jialiu Highway 17.3 I Open since 1994 4 lanes in 2 directions 400 Caoan Highway (NR 312) 24.4 1 Completed in 1993 4 fast lanes. 2 slow lanes (bicycle) 120 Shanghai-Nanjing Expressway 25.9 Xway 1992-96 4 lanes in 2 directions, limited access, 1,500 interchanges on all exits Y 1,080 tillion to be invested between 1994 and 2000 HupineneinHighway (NR 318) 54.0 1 1990-93(oven since May 1993) 4 fast lanes. 2 bicycle lanes 420 00 Huxingfeng Highway (NR 320) 31.0 n To be improved during 9FYP Adding bicycle lanes, beginning 1994, 1996 100 completed eingweiHiehway 21.0 U 1989-90 (completed in 1990) Plan to add bicycle lanes after 2000 100 Shanghai-HsangzhouExpressway 4 lanes in 2 directions, reserving 2 lanes in 290 1 angzhug-So ngjiang 20.5 Xway Comnpletedin 1990 centald median full closed, full interchanges Section on all exits 27.67 Xway 1995-98 2,500, including loan 2. Songjiang-Fengjiang Section interest (600 million from Shanghai High- way Management I______NDepartment) Inner Ring Road 45.0 Urban 4 traffic lanes for 32 km viaduct, 4 fast 46,000 artery 1992-94 lanes. 2 bicycle lanes for 45 km eround road Suburban Ring Highway 48.0 I Implementin2g48 km Tongjiang-Sanya ection 4 lanes in 2 directions 47,600 by the year 20 Tongjiarng-SanyaHighway 26.0 I IniRlementing Xinnong of Jinshan County- 4 lanes in 2 directions (Arteryof National Road) Oi iadun Poit Section beginning in 2000 Outer Ring Highway 97.0 I Southwest Ring ection of 34 km to be 4 lanes in 2 directions, plus adding 2 lanes 150,000 63 km after completed between 1995 and 1998 and 63 km (bicycles and vehicles) 2000 to be constructed after 2000 Table 2.16: ZHEIIANG: HIGEWAY DEVELOPMENTPROGRAM
Mileage Cost Name Location/Route (km) Period (Y mil) Hangzhou-NingboExpressway Beginsat Pengbu Town in the cast Suburb of Hangzhouand passes through Xiaoshan, Shaoxin, Shangyu, Yuyao, passes along Duantang of Ningbo City and over Fenhuajiang River and ends at Dazhujia Village. 145.0 1992-1996 3,700 Shanghai-Hangzhou Expressway Begins at Pengbu Town in the cast Suburb of Hangzhou and passes through Yuhang, Haining, Tongxiang, Jiaxing, Jiashan and ends at Fengjing 102.6 1994-1998 3,457 (boundary of the Zhejiang Province and Shanghai Municipality).
Ningbo-Taizhou-Wenzhou Expressway Begins at Daqi of Beilun District of Ningbo Municipality and passes through Yinian, Fenghua, Ninghai, Sanmen, Linhai, Huangyan, Wenling, Leqing, Yongjia, Wenzhou, Longwan, Ruian, Pingyang, Cangnan and ends at 360.0 Fenshuiguan (boundry of Zhejiang and Fujian Provinces).
a. Daqi-Xiwu Expressway Extends from Daqi to Wuxiang, through Panhuo, Jiangshan and ends at Xiwu. 47.4 1994-1998 1,472
b. Yangmeiling-Huwujie Expressway Extends from Qingling to Huangtuling, through Huangyan City Yuanqiao, 44.5 1994-1998 1,584 Tangling, Daqiling and ends at Huwujie of Leqing.
c. Oujiang Second Bridge/Section Begins at Guantouxi of Leqing County, passes through Qidu, Zhuangyuan and 17.5 1994-1998 1,180 ends at Longwan, Nanbeixiang. Oujiang Second Bride Includes 3,800 m.
Hangzhou-Jinhua-Quzhou Exprcssway Begins at Honggen Plantation of Xiaoshan City and passes through Zhuji, Pujiang, Yiwu, Jinhua, Lanxi, Longyou; ends at Quzhou and connects with 231.2 1996-2002 5,426 No. 320 National Road. Hangzhou-Nanjing Expressway Begins at Gouzhuang of Hangzhou City (a planned outer road around the city) and passes through Yuhang, Deqing, Huzhou, Changxing and ends at Yizilin 101.5 1995-2000 3,045 (at the boundary with Jiangsu Province).
Shangyu-Sanmen Class I Special Begins at Guzhu and passes through Shenxian, Xinchang, Tiantai and ends at Road for Vehicles Gaojian of Saneen County. 147.6
a. First Phase of Shangyu Section Extends from Guzhu to Zhangdin. 17.2 1994-1996 168 b. First Phase of Shenxian Section 27.0 1994-1998 300 c. First Phase of Xinchang Section 10.0 1995-1996 100 d. First Phase of Tiantai Section 18.0 1995-1998 200 - 83 -
Table 2.17: ZHEwJANG: TRANSPORTINVESTMES PLANNEDFOR IMPROVED ACCESSTO HANGZHOUCrrY LA
Project Investment (Y million)
Hangzhou-Ningbo Expressway - 45.92 Constructionof Pengbu interchange
Hangzhou-Jinghua Road - 74.58 Rehabilitationof Xiaosan-Ciwusection Third Qintang River Bridge 260.66 Lb Outer Ring Express Road 500.00 NR 320 720.00 Rehabilitationof Hangzhou-Shouchang Section (upgradingto Class I) Provincial Road 02 91.00 Upgrading of Wangjiabu-Linglongsection to Class I, inlcuding constructionof two bridges and tunnels and reduction of total length Shanghai-HangzhouExpressway 240.00 Constructionof Pengbu-Wengniersection South Hangzhou Intercity Bus Terminal Expansion 15.00 of facilities by 8,000 m2, increasing capacity to 12,500 passenger trips per day West HangzhouIntercity Bus Terminal Expansion 24.00 of facilities by 22,000 m2, increasing capacity to 22,000 passenger trips per day HangzhouHarbor 22.00 Constructionof harbor and shippingadminis- tration facilities (floor space of 22,000 ), Beijing-HangzhouCanal 110.00 Rehabilitationof Hangzhouintracity section Total 2,103.16
La Projects to be completedconcurrently with constructionof the Shanghai-Hangzhou Expressway. lb Yuan equivalent of $29.95 million at 8.70 yuan per $ exchangerate. - 84 -
Table2.18: SHANGHAIHGHWAY REVENUES AND EXPENDITURES, 1986-2000 (Y MILLION)
7FYP 8FYP 9FYP 86-90 91-95 96-2000 REVENUES
Road maintenance fee 2,125.7 4,661.4 7,802.5 Capital construction (subsidy) Central government (MOC) 74.4 453.4 551.6 Local government 32.6 221.7 267.9 Road bond 799.7 500.0 Passenger taxes 10.6 515.7 2,203.6 Bank loans - 200.1 321.9 Other foreign capital - 300.0 1,100.0
Total 2,243.3 7.152.0 12,747.5
EXPENDITURES
Transfer to Central government 234.1 241.9 241.8 Transfer to traffic police 9.1 22.0 25.0 Road construction and improvement 1,595.5 6,171.6 7,400.0 Road rehabilitation (periodic) 86.3 439.8 452.2 Routine maintenance 244.3 409.8 632.8 Overhead, research and training 151.5 475.9 575.0 Loan interest and amortization - 24.5 389.9
Total 2.320.7 7,785.5 9,716.8
Source: Shanghai Shanghai-HangzhouErpressway Construction Executive Commission - 85 -
Table 2.19: ZHEJIANG: HIGHWAYREVENUES AND EXPENDITURES,1986-2000 (Y MILLON)
Compound annual growth 7FYP 8FYP 9FYP rate 1986-90 1991-95 1996-2000 1986-2000
Road maintenancefee 1,901.5 4,220.4 6,453.1 9.1% Provincialsubsidy 61.7 6.0 0.0 - MOC subsidy 249.0 590.9 1,021.5 10.6% Fund for high-class highways 518.9 1.475,0 2.224.0 11.0% 2,731.0 6,292.3 9,699.6 9.5%
Expresswayconstruction 81.2 2,393.4 2,250.0 26.8% Other constructionand upgrading 1,482.3 2,867.6 4,463.9 8.2% Routinemaintenance 255.1 574.4 953.0 10.9% Periodic maintenance 217.9 381.8 635.3 7.9% Overheadand other 90.4 317.7 549.6 13.8% 2,096.0 6,534.9 8,851.8 10.8%
Surplus/(deficit) 635.0 (-242.6) 847.8
Source: ZAejiangProvincial HighwayAdministration Bureau Table 3.1: CHiNA: HIGHWAY DESIGN STANDARDS
Motor vehicle only highways General-purpose highways Expressway Class 1 Class 2 Class 2 Class 3 Class 4 Flat Rolling Mountainous Flat Other Flat Other Flat Other Flat Other Flat Other
DESIGN CAPACITY (VEH/DAY) Passenger car eq...... 25,000 + ...... 10,000-25,000 Medium truck eq. 4,500-7,000 2,000-5,000 200-2,000 ..... <200 .
DESIGN SPEED (KM/H) 120 100 80 60 100 60 80 40 80 40 60 30 40 20
CARRIAGEWAY WIDTH (M) 2x7.5 2x7.5 2x7.5 2x7.5 2x7.5 2x7.0 8.0 7.5 9.0 7.0 7.0 6.0 3.5 3.5
SUBGRADE WIDTH (M) General 26.0 24.5 23.0 21.5 24.5 21.5 11.0 9.0 12.0 8.5 8.5 7.5 6.5 6.5 Variation 24.5 23.0 21.5 20.0 23.0 20.0 12.0 ------7.0 4.5
HIN CURVE RADIUS (H) 650 400 250 125 400 135 250 60 250 60 125 30 60 15
MIN SIGHT DIST (H) 210 160 110 75 160 75 110 40 110 40 75 30 40 20 0%
MAX GRADE (x) 3 4 5 5 4 6 5 7 5 7 6 8 6 9
SHOULDER WIDTH (M) Hard - standard >2.50 >2.50 >2.25 >2.00 >2.50 >2.00 minimrum 2.25 1.75 1.50 2.25 1.50 Soft >0.75 >0.75 >0.50 >0.50 >0.75 >0.50 1.50 0.75 1.50 0.75 0.75 0.75 0.5-1.5 0.5-1.5
MEDIAN WIDTH (H) Standard 3.00 2.00 1.50 1.50 2.00 1.50 Minimum 2.00 1.50 1.50
Source: 'Gonglu Gongcheng Jishu Biaozhun' (Highway Engineering Technical Standards), 1983, Ministry of Communications. Table 3.2: STAFF TRAiNG PROGRAM
SHANGH SECTION-OVERSEASTRAINNG
Number participating and Person- Cost Ara of training duration of training months S'000 Y'000 Description
Study tour abroad 16 persons/0.7 months 11.2 117.6 1,023.1 Comprehensive investigation by senior managers and technical staff from Shanghai municipality, bureaus, departments, and Shanghai-Hangzhou Expressway Engineering Construction Executive Commission. Proposed topics include planning, fundraising, and systems for management and maintenance.
Desijn
Highway 2 persons/2 months 4.0 33.6 292.3 Route location, interchange location and types, embankment, and pavement.
Structure 2 persons/2 months 4.0 33.6 292.3 Large, medium, and interchange bridges.
Traffic I personl2 months 2.0 16.8 146.2 Highway safety facilities and systnms for surveillance, communications, and tolling.
Construction
Embankment, pavenment 3 persons/2 months 6.0 50.4 438.5 Construction and supervision methods for soft embankment, nechanical construction process for cenent x concrete, bituminous concrete pavement and anti-skid treatments for bituninous pavement.
Structure 3 persons/2 months 6.0 50.4 438.5 Mechanical construction process for major bridge and interchange tructurcs.
Traffic 2 persons/2 months 2.0 16.8 146.2 Debugging of surveillance device, advanced toll system facilities and highway safety facilities.
Conmrehensive Manascment
Maintenace 4 persons/2 months 8.0 67.2 584.6 Expressway pavement maintenance management system, mechanical maintenance equipment, traffic and highway operations safety.
Prcoect management 3 persons/2 months 6.0 50.4 438.5 Expressway network planning, project management and purchas enthods.
Planning, statistics, 2 perona/2 months 4.0 33.6 292.3 Computer network managenent and intemational engineering financial mnanagementmethods. and financial management
Preparatory cost 23.5 204.6
Total 493.9 4.297.1
... Connnued Table 3.2: (cont'd)
SHANGHAI SECTION-DOMiESTIC TRAINNG
Number participatingand Person- Cost Area of training durationof training months $'000 Y'000 Description
Domestictraining by foreignexperts 2 persons/i month 2.0 40.0 348.0
Projectmanagement 50 persons/i month 50.0 28.7 250.0 Lectureson subjectssuch as planning,project management,engineering, financialmanagement, and operationsmanagement.
Domestictraining by local experts 5 persona/I month 5.0 2.9 25.0
Environmentalprotection 8 persons/2months 16.0 7.4 64.0 Environmentalsampling and testing.
Land acquisition 4 persons/i month 4.0 1.8 16.0 Standardsand rules.
Constructionmanagement 20 persons/I month 20.0 11.5 100.0 Contracts,roadbed, pavement, and bridges.
Preparatorycosts 4.6 40.2
Total 96.9 843.2 Table 3.3: STAFF TRAING PROGRAM
ZHEJIANG SECTION-OVERSEAS TRAxING
Number participatingand Person- Cost Area of training durationof training months S'000 Y'000 Description
Studytour abroad 40 persons/0.75months 30 340.7 2,984.0 Comprehensivestudy tour for systemsplanning, design,construction, and management of expressways.
Design Alignment I person/2 months 2 15.0 130.8 Computer-aideddesign of roads, optimizeddesign of alignment.
Interchange I person/2 months 2 15.0 130.8 Designof interchangesand configurationof ramps.
Traffic engineering 2 persons/2months 4 30.1 261.6 Designof safety, managementand servicefacilities.
Subsoiltreatment 4 persons/2months 8 60.1 523.2 Technologyand monitoringmethods for differentSubsoil treatments.
Pavementconstruction 4 persons/2months 8 60.1 523.2 Mechanized constructiontechnology of cement and asphalt concrete pavementsand antiskid treatment of asphaltpavements. %0
Traffic engineering 4 persons/2months 8 60.1 523.2 Constructiontechnology of surveillance,communications, toll, and lightingfacilities.
Operationsmanagement 8 persons/2months 16 120.9 1,051.4 Toll and traffic surveillancemanagement.
Highwavmaintenance 10 persons/I month 10 95.2 828.0 Managementsystems for expresswaymaintenance, including organization and mechanization.
Proiectmanagement 8 persons/I month 8 76.1 682.4 Expresswaynetwork planning, project management,and environmentalprotection.
Planningand financial management 4 persons/2months 8 60.1 523.2 Managementof computernetworks and reviewof internationalpractice in constructionfinancing.
PreparatorvCosts 46.7 406.1
Total 980.2 8.527.9
... Continued Table 3.3: (cont'd)
ZEuANG SECrlON-DoMEsTIcTRAINNG
Number participatingand Person- Cost Areaof training durationof training months S'000 Y'000 Description
Training by foreign experts 4 persons/I month 4 150.3 1,30S.0 Project mnagementand engineering (sponsored by Zhejiang Province), and financial and operations management(sponsored by Shanghai).
Traminingby local experts 14 persons/0.5months 7 154.6 1,346.2 Road and bridge design, traffic engineering,consuuction technology, mechanization of maintenanceoperations and organizationand managementof toll operations.
Preparatorycosts 15.2 132.7
Total 320.2 2f785.9
0 - 91 -
TABLE 3.4: EQUIPMENT TO BE PROCURED - SHANGHAI EXPRESSWAYSECRION
Total BaseCost Net of Taxesand Duties CIF Price Per Unit Methodof Yer of Item Quantity ($US) SUS Yuan Procurement(A Procurenent
A. Central laboratory
1. MarshaUstability apparatus I 14,000 14,000 119,000 lnternationalshopping 14Y6 2. Marshall automatc tamping instrument 1 10,000 10,000 85,000 Interntional shopping 1996 3. Asphalticconcrete auto-extractor 1 20,000 20,000 170,000 Inbtenationalshopping IYY6 4. CBR field-testingsystem 1 6,000 6,000 51,000 International shopping 1996 5. Testing hammerfor modulusof resilience 1 3,000 3,000 25,500 Not Bank-financed & 1995 6. PDA piing analyser 1 145,000 145,000 1,232,500 Not Bank-financed f Is 7. Clinometer 1 15,000 15,000 127,500 International shopping I1Y6 8. Settlementgauge 4 7,000 28,000 238,000 Internationalshopping 1996 9. Pavementstrength testing vehide 1 300,000 30D00 2550 Not Bank-financed A IS5
541,000 4,598,500
B. Research& PavementManagement
1. Pavementtexture imstrument I 100,000 100,000 850,000 Not Bank-financed & 9IY5 2. Hammer deflectomneter I 90,0D0 90,000 765,000 NCB 198 3. Viameter I 10,000 10,000 85,000 Interntiona shopping 1998 4. Bridge testingvehide & platform 1 500,000 SM.000 4,250.0D Not Bank-financed & 1995
700,000 5,950,000
C. Environment
1. Combinedmonitor for noiseand vibration 4 982 3,928 33,388 Local shopping 1997 2. Samplerfor atmosphere 4 786 3,144 26,724 Local shopping 1997 3. TSP sampler 4 1,179 4,716 40,086 Local shopping 1997 4. Monitoring vehicle 1 19,649 19,649 167,017 Local shopping 197 5. Computer 1 4,912 4M2 4L,752 Local shopping 1997
36,349 308,967
D. ExpresswayMaintenance and Operation
1. Medium type asphaltpaver 2 300,000 600,000 5,t00,000 ICB 1999 2. Pneumatictyred roller, 8-12ton I 1oo0,00 100,000 850,000 Not Bank-financed ft 1995 3. Pneumatictyred roller, 6-8 ton 1 90,00 0,o000 765,000 Not Bank-financed ft 1995 4. Vibratory roller, 8-12ton I 100,000 100,000 850,000 Not Bank-financed ft 1995 5. Vibratory roller, 6-8 ton 1 80,000 80,000 680,000 Not Bank-financed ft 1995 6. Roadmilling machine 1 420,000 420,000 3,570,000 ICB 1999 7. Wrecker 2 90,000 180,000 1,530,000 ICB 1999 & Roadsweeper 4 160,000 640,000 s,440,000 Not Bank-financed ft I5 9. Automaticroad line marker 1 82,000 82,000 697,000 NCB 199 10. Hand-operatedroad line mrker 1 25,000 25,000 212,50 Local shopping 1999 11 Road sprinkler 2 29,915 59,829 508,547 NCB 1999 12. Aerial work platform 1 67,059 67,059 570,000 Not Bank-financed ft 1995 13. Trailer powerstation 3 6,838 20,513 174,356 Localshopping 1999 14. Multi-function roadmantainer 3 250,N 750A00 6O37500 Not Bank-financed f 19
3,214,400 27,322,403
Basecost 4,491,749 Physicalcontingencies 449,175 Price contingencies 8232273 5,764,197
Import dutiesjd 835,809 Value-addedtaxes IC L12M 1,957,810
Total costof equipmentfor institutionalstrengthening - Shanghai 7,722,007
La Procurementmetiods weredetermined based on expectedcontract valuesof equipment(induding taxesand duties). di Equipmentto be procuredby ShanghaiHighway ManagemnentDepartment by December31, 1995. ft Equipmentwas procured by ShanghaiHIghway Management Department before June 30,1995. Id Import duties wereesimated at 14.5%. I Is Value-addedtaxes were esUmated at 17%ofi(CIF price plus import duty). - 92 -
TABLE 3.5: EQUIPMENT TO BE PROCURED - ZHE;JIANGEXPRESSWAY SECTION
Total BaseCost Net of Taxesand Duties CIF Price Per Unit Methodof Year of Item Quantity (SUS) SUS Yuan Procurement/I Procurement
A. Central LAboratory
1. Rock sawingmachine 1 10,000 1,000 85,000 I|ternational shopping I96 2. Rock polishingmachine I@0 0 10000 85,eo0 liternational shopping 1996 3. Rock coredrill 1 6,e00 6,000 51,000 Internationa shopping 1996 4. Non-neta detector 1 15,000 15,000 127,500 Internationalshopping 1996 5. Nucear mnisture/densitypuge I 10,000 10,000 85,000 Internationalshopping 1996 6. Continuousskid resistanceteter 1 30,000 30,000 255,000 Internationalshopping 1996 7. Hard watertester 1 3,000 3,000 25,500 Internationalshopping 1996 R Boring surveysystem 1 70,000 70,000 595,M00 NCB 199 9. Automatichigh temperture fsrnace 1 7,000 7,00 594900 Internationalshopping 1996 10. Liquid/plasticlimit tester I 10,000 10,000 85,000 Internationalshopping I996 11. Sail bouncetester 1 20,000 20,000 170,000 Internationalshopping I996 12. ConsWolidationtesting system 1 20,000 20,000 170,000 Internationalshopping 1996 13. Triaxial testingsystem 1 60,000 60,000 510,000 NCB 1996 14. Anti-pressurestrength meter I 20,000 20,000 170,000 Internationmlshopping 1996 15. Automatic ductilitYtester I 10,000 10,m00 85,M00 Internationalshopping 1996 16. Automatic asphaltpenetrometer I 5,000 5,000 42,500 Internatonl shopping 1996 17. Flexural and tramversensachine 1 10,000 10,000 85,000 Interntional shopping I996 18 Concretebuoyancy balance 1 5,0W0 5,0W0 42,500 International shopping 1996 19. Digital water pH meter 1 3,000 3,000 25,500 International shopping 1996 20. Rock wearingnachine I 10,000 10,000 85,000 Internationalshopping 1996 21. Automaticbridge estingsystem 1 400,M00 40t0i 3AOsO0 ICB 1996
734,0D0 6,239,0D0
B. Research,Design, end Administration
i. Facsimileor telex 2 2,500 5,000 42,500 Internationalshopping 1998 2. Coswputerand administrativesoftware 2 10,0W0 20,0W0 170,000 Internationalshopping 199 3. Elevator(passenger) 4 30,000 120,000 1,020,000 NCB 1998 4. Video recording,editing, & displayequipment 1 40,000 401 340,000 NCB 1998
185,000 1,572,500
C EnvironmentalProtection
1. NN.1 noisemonitor 1 1,500 1,50 12,750 Internationalshopping 1997 2. ND2 precisesound level meter 1 2,500 2,500 21,250 Internationalshopping 1997 3. R&K 4420nose level nalyzer 1 8,00o 8,0D0 68,000 Internationalshopping 1997 4. Atomic absorber 1 12,000 12,000 102,000 Internationalshopping 1997 S. EP esting machine 1 45,000 4AL 3SMQ NCB 1997
69,000 586500
D. ExpresswayMaintenance and Operation
1. Dust absorptionsweeper, heavy-duty 2 150,000 300,000 2,550,000 ICB 199 2 Sweeper,light-duty 3 70,000 210,0W0 1,785,000 ICB 1999 3. Hot water machinewith electricmotor 2 5,000 10,000 85,000 Internationalsbopping 1999 4. Line marker 2 35,000 70,000 595,000 NCB 1w9 5. Mobile hydraulichammer 2 130,000 260,000 2,210,0W0 ICB 199 6. Wateringcor 2 50,000 100,000 850,000 NCB 1999 7. Multi.purposemalntainer 2 100,000 20Q000 1,700,000 ICB 19" R Asphaltconcrete mxer 1 180,000 180,000 1530,000 ICE 1999
condnued.. - 93 -
TABLE 3.5 (coNT'D)
Total BaseCost Net of Taxes nd Dutie CIF Price Per Unit Mehod of Year Of Item Quantity (SUS) SUS Yuan Procurement/A Proesarunent
D. Expressway Maintenance and Operation(continued)
9. Asphaltconcrete paver 1 300,w0 300,000 2,550,000 1ICR 19 10. Surfacemilling machine 1 280,000 280,000 2,30,000 | ICR 199 11. Vibratory roller, doublesteel rollers 1 150,000 150,000 is75,00o 1CB 199 12. Tyred rotter 2 80,000 160,000 1,36,000 1CB 19 13. Asphalt concretedeliver truck 2 75,000 150,000 1,275,000 1CB 199 14. Rushtow truck, IS ton or greater 2 170,000 340,000 2,890,000 ICB 199 15. Truck crane,40 ton or greater 1 3s5,000 350,000 2,975,000 1CB 1999 16. Travelling floodlightingmachine 4 45,000 180,00 1,530,000 ICB 199 17. Equipmentrepair center 1 150,000 250,000 1,275,000 ICB 1999 I& Curber 1 60,000 60,000 s10,000 NCB 199 19. Traffic cruiser 6 25,0e 15,000 1,275,000 ICB 199 20. Vehicleror road administration 5 30,000 IS0,00 1,275,000 ICB 1999 21. Bus for ticket colector, 40 or more seats S 60,000 300,000 2,ss5,000 ICB 199 22. Vehiclefor toll collection 2 30,000 60,000 510,000 ICRB 19 23. Emergencyservice van, medium-sized 2 35,000 70,000 595,W00 ICEB 19 24. Flat bedtruck, 25 ton I 100,000 100,000 0s,000 1CB 1999 25. Tow truck 2 170,000 340,mo 2,0,0m ICB 19 26. Multipurposemaintainer 2 100,000 200000 LZ ICB 199
4,820,000 40,970,000
Basecost 5,80,000 Physicalcontingencies s5,8so0 Price contingencies LS3B6 7,926,863
Import duties& 1,585,373 Value-addedtaxes & 3,61708
Total cost of equipmentfor institutionalstrengthening- Zhejiang 11,129,16
hn Procurementmethods were determined based on expectedcontract values oF equipment (including taxesand duties). Al Import duties wereestimated at 20% of the CIF price. & Value-addedtaxes were estimated at 17%of (CIF price plus import duty). -94 -
TABLE 3.6: EQUIPMENT TO BE PROCURED - ROAD SAFETY PROGRAM
ToW Dae Coft Nrt of Tao. and Dud. CIF Prim Per Unit Me_hodor Ye rof Itm Q_uaty ($US) SUS Yuan Promment /a Prcurenamt
1. Traic couadg equpmnt I l000 1606 5lllO NCB 1996 2. Coqmpen ad perphera 16 S,AO 3, 610M NCB 196 3. Odber 1 2,"00 m L-cl ipplng 196
Be cat 200,000 1,700,060 Phyded cadiaasa& 20i.m Price mtigendes 254,36
Impwr dutksh 501,S73 Vuoldded tax. & 5am 102,762
Toal cost of eupnent for Road Safety Progrm 357,125
n Promm m o wr deterined bad expcted cmbed vahe of eqlpmt (loduda taue Nd dudt). & I_ort dtwereeimtd at20%oftieCFprimc IC V d ta wer ate 17% of (CIF price plu port duty). - 95 -
TABL 3.7: SuMmARY oF EQuiPMENT TO BE PROCuRED UNDER THE PROJECr
Procurement($1.1) /n Cost Internationaland Not Dank- Category (SUS) ICB NCR Local Shopping financed
BDaecost of equipment for:
Institutional strengthening/i Central laboratories 1,275,000 400,000 130,000 297,000 441,000 Research, design, and mdmlnistration 885,000 0 250,000 35,000 60D,000 Environmental protection 105,349 0 45,000 60,349 0 Expressway maintenance and operation 8,034,400 5,780,000 371,829 55,513 1,827,059
Road SafetyProgram n 184 2QSD A
Total base cost 10,499,749 6,180,000 976,829 467,862 2,875,059
Physical contingencies 1,049,975 618,000 97,683 46,786 287,506 Pricecontingencies 2L395699 16B5932 82284944 44 31t722. 3,445,674 2,303,932 326,182 140830 674,729
Total cost induding contingencies 13,945,423 8,483,932 1,303,011 608,692 3,549,718
Import dutiesf 2,472,054 Value-addedtaxes /d 2 790971 5,263,025 3,321,013 506,052 230,274 1,205,686
Total cost including contingenciesand taxes 19,208,448 11,804,945 1,809064 838965 4,755,474
It Procurementmethods were determined based on expectedcontract valuesof equipment(induding taxesand duties). & Comprisesequipmsent to be usedduring the constructionand operationof the Shanghai-HangzhouExpressway and other roadsin Shanghi Municipality nd ZbejiangProvince. t Import duties wereestimated at 14.5%and 20%of the CIF price in Shanghaiand Zhejiang,respectively. id Value-addedtaxes were estimated at 17%of (CIF price phusimport duty). - 96 -
Table 3.8: ESTIMATED DISBuRsEmENTSCEDULE ($ million)
Disbursement profile of Bank fiscal year Estimateddisbursements transport projects and semester Semester Cumulative % in China (%) La
1996 December 31, 1995 lb 25 25 10 6 June 30, 1996 12 37 14 11
1997 December 31, 1996 18 55 21 16 June 30, 1997 24 79 30 26
December 31, 1997 26 105 40 38 June 30, 1998 28 133 51 48
1999 December 31, 1998 28 161 62 60 June 30, 1999 26 187 72 69
2000 December 31, 1999 25 212 82 78 June 30, 2000 25 237 91 90
2001 December 31, 2000 23 260 100 100
Note: (1) Project CompletionDate: December 31, 2000. (2) Loan Closing Date: June 30, 2001.
La As of August 1993. Lb Includes initial payments into Special Accounts, advance payments to contractors, and payment for retroactively-financedworks.
Source: Mission estimates. - 97 -
TABLE 4.1: ZHEJIANG: TRAFC GRowTH ON NATIONALROUTE 320 (AADT)
T, Y_ Vd Co ^& MmaYd* Tnl TOTAL VY No. S51o Sod Mod Lp So L4 Trlls Toal Cooo Sod Lgo C.sb B CONV
16 3202 Jbs.. 322 1,198 235 473 234 lt 2,(2l 2,464 32 5 5E 2,161 2,745 ISO 320-2 D_- 31E 1,269 22V 474 203 122 2,12 2,4a3 52 14 5s 4,164 2,943 298 320-3 No-h. 509 1.720 150 716 332 422 3,48 3.701 84 26 57 3,910 4,221 16 320-4 HAlq 456 1,762 233 761 337 396 3,845 3.663 53 9 252 3.947 4,245 293 320-5 So.o 39 2,293 224 614 328 264 4,122 3,947 538 8 296 6,539 9,176 190 3204 Ssdhosooo 594 2,09 291 937 410 441 4,672 4a434 476 U3E 66 27957 5,358 1296 320-7 HIgyog 675 2,962 467 I,0 527 2,300 6,62 7,092 I5 2 536 12,0S 8,666
2997 320-1 JAh. 468 2,539 237 787 320 220 3,55E 3,263 59 9 29 2,009 3,550 2987 320-2 DoabW 38 2,555 258 852 266 208 3,535 3,213 225 Is 52 4,642 3,836 167 320-3 Noh, 737 2,113 122 2,039 373 933 4,987 4,654 228 29 59 4.473 5,20 1987 3204 HNit. 571 2,248 225 2,005 376 432 4,657 4,371 222 12 355 4,556 5,137 1957 320-5 So.oqIoo. 634 2,091 384 867 401 286 4,573 4,253 829 223 204 9.336 5,86o 2T7 3264 Ss_dhoos 696 2,075 2s 1 2.7 4a0 4r7 5,2u3 4,038 404 26 4 2,933 5,603 297 320-7 HInoWooo 658 2,374 409 1.433 587 BID 6,271 5,90 29 1 322 10,507 7,126
198 320-2 Jh. 64 1,425 223 1,073 223 291 3,793 3,402 84 6 44 2,245 3,739 195 320-2 D.. 538 1,503 156 1,144 206 327 3,966 3,459 140 24 S9 4,457 4,106 18 320-3 Nah. 792 2,550 118 2,197 372 519 5,548 5,209 110 29 47 2,545 5,616 29S 3204 HutOog 033 2,403 250 1,405 340 462 5,53 5,222 26 9 176 5,678 5,954 29M8 320-5 Saokqlo 828 2,363 202 2,245 315 5s3 5,359 5,830 772 n 287 4,036 6,406 1988 3204 Soiioodo 907 2.6 299 2,92 426 639 7,093 6,431 306 8 245 3,149 7,233 298S 320-7 Hlao g 999 2,265 I2n 2,044 446 S54 6,710 6,115 39 3 1,102 14,075 5,234
2949 320-1 JLos 638 2,580 243 958 312 277 4,000 3,668 75 29 36 2,218 3,59 1M 320-2 DAOI 443 2,539 301 1,018 249 236 3,796 3,395 97 22 69 4,442 3,93 2M 320-3 Ndoo 85`4 2,502 116 1,169 359 542 5,842 ,227 222 25 65 3,229 5,719 19N9 320-4 Hdosg 721 2,390 122 2,149 340 463 5,192 4,84 239 la 252 5,432 5,757 2989 320- S . 761 2,898 354 946 378 442 4,778 4,522 954 167 221 7,094 6,461 129 320-6 Sodoio 577 1,706 36 1,975 30 459 4,572 4,264 373 23 5s 3,264 5,085 1291 320-7 HIogo 709 2,337 344 2,337 6f 503 6*,S0 5,628 40 8 537 11,328 7,069
190 320-2 Modh 710 2,735 I 2,545 334 374 4,807 4,302 6o 5 52 2.423 4,635 19"0 322 D- h l 775 1,870 23S ',666 342 426 5,336 4,716 67 22 204 4,572 5,313 299 320-3 N o 9ss 2,754 138 2,6o8 534 549 6,563 6,039 94 25 73 2,95 6,494 19"0 3204 HIsoo f9f 2,755 28 2,895 537 534 6,960 6,20 123 iS 131 5s,o5 6,99 29 320-5 staq. 776 2,559 252 2,257 428 509 5,722 5,327 653 72 86 2,322 6,225 2"9 320-64 sdho.oa 1,094 3,772 811 2,795 526 627 8.98 7,896 330 4 147 2,903 8,622 2998 328-7 HAo 0 924 2,7M2 216 2,911 240 854 5,906 5,9 50 1 1,482 2,924 8,876
299 320-2 MoMs, 864 2,543 275 l,890 436 484 6,492 5,789 82 9 65 2,506 6,192 199 320-2 Donjoho 945 2,449 273 2,081 461 642 6,782 6.,07 91 24 138 4,233 6,694 199 320-3 Nets. 2,343 3,502 257 2,222 642 95 8,5s44 7,532 220 2 28is 3,338 8,374 2"9 320-4 Hdi 2,60 3,025 335 2,232 482 605 8,32S 7.565 102 1 65 3,263 S,036 129 3205 Soaolo 2,045 3.568 235 1,8s 0s2 539 7,666 7,083 g8l 75 126 2,487 7,871 1"2 320-4 sWohaoi 1,450 3,956 621 3,272 69 98S 20,533 9,700 339 27 268 2,799 10,630 1991 320-7 H-V.a 1,110 2,965 216 2,122 262 1,100 6,7125 6,154 42 1 2,681 17,565 8s,53
I92 320-1 JlI - 1,202 2,798 375 2,929 578 53 8,235 7,197 120 9 a 2,356 7,596 299 320-2 D0awhu 2,195 2,951 252 2,466 557 704 8,125 7,244 169 14 255 4,224 7,942 Im 320u3 Noah. 2,8s 4,561 In 3,073 SS 929 12,582 10,429 199 33 227 3,673 22,137 192 32-4 Hul.og 2,293 3,325 226 2,766 681 706 9,987 8,9s7 iss 28 b 2,640 9,420 I2 320-5 osh-l. 2,165 3,874 229 2,270 668 723 8,819 3,092 917 268 131 1,226 9,364 I12 3264 Sdh.onmlb 1,582 4,358 723 3,573 786 1,052 12,397 18,09 434 2s 224 2,572 11,763 5992 320-7 HFoys 1,270 2,142 442 2,658 371 2,202 8,005 7,277 40 1 2,942 20.632 ,952
29 320-3 Nmho 2,426 5,193 I 3,783 1,264 2,212 13,964 122.i6 300 27 28 3,508 23,406 M4 320-3 N-hs 2,965 5.666 282 4,306 2,69S 1.097 29,934 24,330 378 26 312 3,225 29,214
190 } 456 1,918 241 716 337 44 4,097 3,942 178 39 186 4,917 4,745 1987 ) 594 1,972 240 1,027 39 419 4,673 4,369 237 29 156 4,934 5,20 298 ) A-go 779 2,196 277 1,424 333 523 5,423 4,98 232 23 268 5,254 S,804 99 All 672 2,593 265 2,095 387 429 4,840 4,57 269 35 277 5,285 5,423 1990 ) Solos 88s 2,450 202 2,827 437 556 6,339 5.7o0 297 28 29 5,459 6,422 1991 I ,20 2,990 257 2,196 526 710 7,920 7,267 293 22 343 5,223 0S, m2 } 1,49 3,430 347 2,791 643 82 9,94 8.592 205 36 395 4,768 9,596
A - -l GnMth
1986-19,311 22% InS 6% 255 2I S1% 15% 145 9% -1% 23% 42% 122 2909-9,9 .12 32% 20% 9% 37% 1% 26% 25% 24% 3% 1% 31% -3% 21% 113986-19, N-.h 25% 16% 4% 25% 23% 23% 19% 18% 22% 6% 24% -2% 17% 1989-1"4,Nhs. 2I% 18% 22% 30% 36% 25% 24% 22% 2I% is 37% o% 22%
12) VoikImo,Ok (Inowm od,Sohrlr .o1566 or. dolb.o. - iOnhd. (2) Cosoonl. radon 4repfs qIaon dab fldk 1.I, .0 *0 p .. r &kbs 251.5)trolo 00d o r tikh (1.5), o 10.51, sod bkylr (0. 1) SOURCE: ZMJl.og P-s4l Cosoolnkot, Dprp - 98 -
Table 4.2: SHANGHAI: TRAFFICGROWTH IN ExPRESSWAYCORRIDOR
Tracks Passenger Vehkles Trailers Motor Vebs TOTAL Year Smi Med Lge Smi Lge /Contalners Total Converted Tractors Carts Bikes CONV
NH 320, Fenjug 196 326 623 397 314 221 221 2,102 2,056 14 10 1,044 2,179 1967 291 481 367 305 171 194 1,809 1,754 18 3 1,258 1,S99 19S8 262 475 363 286 231 159 1,776 1,713 sO 4 1,213 1,886 19S9 302 372 381 347 187 120 1,709 1,596 25 2 1,510 1,773 1990 796 790 435 921 269 254 3,465 3,132 62 12 2,248 3,424 199 987 1,034 492 1,322 335 414 4,584 4,130 S5 45 2,285 4,466 199 1,094 886 866 1,502 362 474 5,184 4,670 98 62 1,326 4,932
Maegwg Buidge 1989 179 174 157 227 96 76 909 834 139 38 6,213 1,613 199 244 181 223 272 112 97 1,129 1,042 126 51 5,251 1,718 1991 286 214 55 190 122 14 881 793 178 58 4,275 1,428 i19 317 237 34 335 169 6 1,098 934 63 6 3,046 1,304
SMng-Yun-Smn-Chang 1989 216 154 81 288 1ll 15 865 729 186 123 7,200 1,696 19s 312 156 206 429 157 37 1,297 1,101 190 170 8,901 2,266 1991 474 405 107 722 166 34 I,908 1,564 229 81 5,207 2,354 i19 699 532 116 1,053 233 60 2,693 2,197 270 77 5,146 3,020
SHANGHAI WEST, TOTAL i198 697 700 619 862 394 211 3,483 3,158 350 163 14,923 5,081 199 1,352 1,127 S84 1,622 538 388 5,891 5,274 378 233 16,400 7,409 1991 1,747 1,653 654 2,234 623 462 7,373 6,487 492 184 11,767 8,248 19 2,110 1,655 1,016 2,890 764 540 8,975 7,800 431 145 9,518 9,255 n Grth: 89-92 45% 33% 18% 50% 25% 37% 37% 35% 7% -4% -14% 22%
NH 320, Chedun 1986 731 985 700 874 483 481 4,254 4,058 274 119 4,038 4,795 1987 676 865 539 1,029 461 406 3,976 3,665 198 110 3,739 4,291 198U 818 1,043 689 1,123 535 49 4,707 4,395 212 82 4,191 5,067 19S9 794 858 728 1,078 481 386 4,325 3,979 149 87 4,193 4,591 1990 831 651 741 1,281 434 353 4,291 3,827 131 63 4,427 4,432 1991 1,135 1,601 15 1,938 504 541 5,904 5,206 117 28 4,193 5,756 i19 1,480 1,956 309 2,405 590 557 7,297 6,373 126 27 4,062 6,919
Xinqiao(Shnghai-SongjiangRvprssweay) 1l9 280 285 50 934 78 1 1,628 1,162 1,162 12 592 742 242 1,527 374 28 3,505 2,756 2,756
Sgyug (Sh-aghai-Songjig Expressway) 1986 418 545 132 588 394 149 2,226 2,007 327 69 1,66s 2,535 1987 477 661 221 979 549 197 3,084 2,693 352 73 2,114 3,293 19S8 581 755 360 1,076 553 179 3,504 3,056 343 39 4,303 3,848 1989 753 664 493 1,396 553 252 4,111 3,539 298 58 5,462 4,412 199 683 554 467 1,491 595 203 3,993 3,349 225 23 5,080 4,094 1991 875 787 351 1,235 591 171 4,010 3,478 314 29 4,500 4,257 i19 958 988 247 1,220 568 234 4,215 3,722 269 37 3,395 4,349
SHANGHAI EAST, TOTAL 1986 1,149 1,530 832 1,462 877 630 6,480 6,064 601 Iss 5,706 7,330 1987 1,153 1,526 760 2,008 1,010 603 7,060 6,358 550 183 5,s53 7,584 1988 1,39 1,798 1,049 2,199 1,08 678 8,211 7,451 555 121 8,494 8,915 1989 1,547 1,522 1,221 2,474 1,034 638 8,436 7,518 447 145 9,655 9,003 199 1,514 1,205 1,208 2,772 1,029 556 8,284 7,176 356 86 9,507 8,526 1991 2,290 2,673 586 4,107 1,173 713 11,542 9,845 431 57 8,693 11,174 i19 3,030 3,686 798 5,152 1,532 819 15,017 12,851 395 64 7,457 14,023
Annuat Growth: 86-92 18% 16% -1% 23% 10% 4% 15% 13% -7% -16% 5% 11% 86-88 10% 8% 12% 23% 11% 4% 13% 11% -4% -20% 22% 10% 89-92 25% 34% -13% 28% 14% 9% 21% 20% -4% -24% -8% 16%
/g See footnote to Table4.1 - 99 -
Table 4.3: PROJECTEDTRAmC IN TIE SEANGHA-HANGzHOUCORRIDOR (thousandsof equivalentpassenger car units per day)
Section: Pengbu-Yuhang Yuhang-Fengjing Fengjing-Songjiang New highway length: (18 km) (85 km}n (27 km) Year: 1993 2000 2010 1993 2000 2010 1993 2000 2010
WithoutExpressway
Existing Highway 29.1 67.8 83.9 25.1 57.8 87.5 24.5 57.5 71.3
With Expressway
Assumingno tolls: Existing Highway 35.9 84.0 27.7 76.1 22.4 60.7 Expressway 36.7 108.0 34.6 102.0 40.4 119.0
Subtotal .17 92.238 6 19:
Assumingtolls: ExistingHighway 40.9 84.0 32.4 81.8 27.9 66.0 Expressway 30.4 89.6 28.7 84.7 33.5 98.8
Subtotal 1 7 3 I6 6 1. i6 C1A l4o"
Note: Traffic estimates for the existinghighway include estimatesof local traffic, and also reflect congestion-induced restrictionson traffic growth.
Source: Bank estimates based on data provided bryShanghai and 2Zejiang. -100-
Table 4.4: SHANGHAI-HANGZHOUCORRIDOR ESTIMATED TRAVEL TIMES ANDSPEEDS /a
EXISTING NR 320 HIGHWAY EXPRESSWAY (165 km) (130 km) Without Road With Road Safety Program /b Safety Program /b Time Speed Time Speed Time Speed (hrs) Qkmlh) (hrs) (kn/h) (hrs) (km/h)
WithoutExpressway
1993 3.3 50 1995 3.5 47 1997 4.0 41 1999 5.1 32 4.7 35 2001 7.2 23 6.1 27 2005 13.0 13 12.5 13 2010 13.1 13 13.1 13
With Expressway
2000 3.4 49 3.2 52 1.9 69 2002 3.5 47 3.3 50 1.9 68 2005 4.6 36 4.3 38 2.0 67 2010 7.2 23 6.2 27 2.1 63
/a As estimated by 1993 Appraisal Mission. Actual speeds on NR 320 in 1995 have declined to 35 km/h, due to higher traffic volume and congestion (see para 4.13).
/1 The Road Safety Program provides for the segregation of high- and low-speed traffic through the provision of separate lanes and bridges for slow vehicles along 86 kilometers of the existing NR 320.
Source: Bank Estimates. - 101 -
Table 4.5: VEHICLEOPERATING COSTS
Estimnatedcosts at speeds (km/h) Vehicle Equation coefficients(1) 70 50 40 30 20 type A B R2 ------(Yuan per 100 km)-- --
Existing Highways,fair condition
Car 0.265 8.389 1.000 38.4 43.2 47.4 54.4 68.4 Small bus 0.267 15.497 1.000 48.9 57.7 65.5 78.4 104.2 Medium bus 0.553 13.181 1.000 74.2 81.7 88.3 99.3 121.2 Large bus 0.698 13.657 1.000 89.3 97.1 103.9 115.3 138.1 Small truck 0.285 15.023 1.000 50.0 58.6 66.1 78.6 103.7 Medium truck 0.546 13.243 1.000 73.5 81.1 87.7 98.7 120.8 Large truck 0.846 16.769 1.000 108.6 118.1 126.5 140.5 168.5 Truck-Trailer 1.442 17.963 0.999 169.9 180.2 189.1 204.1 234.0
Expressway,good condition
Car 0.239 8.384 1.000 35.8 40.6 44.8 51.8 65.8 Small bus 0.225 15.477 1.000 44.6 53.4 61.1 74.0 99.8 Mediumbus 0.464 13.195 1.000 65.2 72.8 79.4 90.4 112.4 Large bus 0.621 13.676 1.000 81.7 89.5 96.3 107.7 130.5 Small truck 0.253 15.006 1.000 46.7 55.3 62.8 75.3 100.3 Medium truck 0.481 13.233 1.000 67.0 74.6 81.2 92.2 114.3 Large truck 0.772 16.796 1.000 101.1 110.7 119.1 133.1 161.1 Truck-Trailer 1.315 17.981 0.999 157.2 167.5 176.5 191.5 221.4
Note: (1) ConstantsA and B for an equation: Economiccost/km = A + B/(SPEED IN KM/H) R2 = Correlation coefficientof fitted curve. (2) The geometryof the existing highway is virtually identicalto that for the expressway;the only difference relates to the surface conditions. Since roughnessaffects speeds,operating costs between the two highway classes will generally be measurablydifferent, all else being equal. (3) Costs above representfree-flow operatingcosts; to obtain congested link costs, they should be factoredby [1 +0.2*v/c^2], where v/c is the link volume to capacityratio.
Source: Bank estimates using VOC model. - 102 -
Table 4.6: ESTMATEDCONSTRUCTION COSTS (Y million)
Sections of Shanghai-Hangzhou Expressway
Pengbu Yuhang Fengding Road to to to Safety Cost item Yuhang Fengding Songjiang Total Program
Clvil Engineering Costs 342 1,699 1,097 3,138 138 Electrical and Mechanical 49 67 28 144 0 Construction Supervision 13 45 34 92 2 Design, survey, testing, other la 8 40 15 63 1
Base Cost 412 L82 1.174 3A37 141
Physical Contingency L 40 181 116 337 14 Price Contingency 117 757 528 1,403 60
Subtotal 52 2.791 J1.1 5.177 216
Land Acquisition and Resettlement 76 218 173 467 32
Taxes 19 94 61 113 4
Financial Cost 64 3102 2.052 5.757 247
Economic Cost ( 522 2,213 1,436 4,171 180
Distribution by year a
1994 163 258 15 437 32 1995 119 278 238 635 7 1996 70 322 225 616 79 1997 170 362 269 801 62 1998 0 405 293 698 0 1999 0 403 282 686 0 2000 0 184 114 298 0
Total 522 2212 L436 4.171 180
la Based on preliminary engineering cost estimates prepared by Shanghai and Zhejiang. Lb 10% of civil works and construction supervision cost. Ic Construction cost less contractor taxes and price contingency,adjusted by overall conversion factor of 1.05 id This distribution is consistent with assumptions made for project cost estimation and project implementation. Table 4.7: SHANGHAI_HANGZHOUEXPRESSWAY: ECONOMIC EVALUATION WITmOUT TOLLING (Y million)
PENGBU-YUHANG (13 K YUHANG-FENGJING (35 K FENGJING-SONGJIANG (27 KM) TOTAL (130 KM) Cost Benefit Net Benemft Cost Benefit Net Benefit Cost Benefit Net Benefit Cost Benefit Net Benefit
1994 163.5 0.0 (163.5) 258.4 0.0 (253.4) 15.0 0.0 (15.0) 436.9 0.0 (436.9) 1995 119.5 0.0 (119.5) 287.0 0.0 (287.0) 237.8 0.0 (2.37.) 644.3 0.0 (644.3) 1996 60.7 0.0 (60.7) 321.7 0.0 (321.7) 225.1 0.0 (225.1) 607.4 0.0 (607.4) 1997 160.9 0.0 (160.9) 362.3 0.0 (362.3) 269.1 0.0 (269.1) 792.3 0.0 (792.3) 1998 0.9 251.1 250.2 405.0 0.0 (405.0) 292.3 0.0 (292.3) 698.7 251.1 (447.6) 1999 0.9 366.6 365.7 372.5 0.0 (372.5) 257.3 0.0 (257.3) 630.7 366.6 (264.0) 2000 0.9 535.5 534.6 354.3 0.0 (354.3) 257.4 0.0 (257.4) 612.5 535.5 (77.0) 2001 0.9 606.2 605.3 4.3 633.6 629.4 1.4 492.3 491.5 6.5 1,732.6 1,726.1 2002 3.5 686.3 677.8 4.3 1,142.2 1,133.0 1.4 750.7 749.4 14.1 2,579.3 2,565.2 2003 0.9 777.1 776.2 4.3 1,545.0 1,540.8 1.4 853.1 856.7 6.5 3,130.3 3,173.3 2004 0.9 830.2 379.3 4.3 2,091.0 2,036.3 1.4 981.1 979.7 6.5 3,952.3 3,945.8 2005 0.9 997.0 9%.1 39.7 2,831.4 2,791.3 24.7 1,122.1 1,097.5 65.2 4,950.6 4,835.4 2006 0.9 1,084.5 1,083.6 4.3 3,195.3 3,191.0 1.4 1,244.6 1,243.3 6.5 5,524.4 5,517.9 2007 0.9 1,179.8 1,173.9 4.3 3,607.0 3,602.7 1.4 1,33l.0 1,379.6 6.5 6,167.8 6,161.3 2008 0.9 1,2U3.9 1,283.0 4.3 4,073.0 4,068.7 1.4 1,532.9 1,531.5 6.5 6,889.8 6,333.3 2009 0.9 1,397.5 1,3%.6 4.3 4,600.6 4,596.4 1.4 1,702.2 1,700.8 6.5 7,700.3 7,693.8 2010 0.9 1,521.5 1,520.6 4.3 5,198.3 5,194.0 1.4 1,891.0 1,889.6 6.5 8,610.8 8,604.3 2011 0.9 1,649.6 1,648.7 4.3 5,670.3 5,666.5 1.4 2,040.6 2,039.3 6.5 9,361.0 9,354.5 2012 11.5 1,783.9 1,777.4 4.3 6,187.9 6,183.6 1.4 2,202.7 2,201.4 17.1 10,179.5 10,162.4 2013 0.9 1,940.3 1,939.4 4.3 6,754.1 6,749.8 1.4 2,378.4 2,377.1 6.5 11,072.7 11,066.2 2014 0.9 2,104.9 2,104.0 4.3 7,374.2 7,369.9 1.4 2,568.8 2,567.5 6.5 12,047.9 12,041.4 2015 0.9 2,284.0 2,283.1 53.8 8,053.6 7,999.3 34.0 2,775.4 2,741.4 88.7 13,113.0 13,024.2 2016 0.9 2,398.2 2,397.3 4.3 8,456.3 8,452.1 1.4 2,914.1 2,912.8 6.5 13,768.6 13,762.1 2017 0.9 2,513.1 2,517.2 4.3 8,879.1 8,874.9 1.4 3,059.8 3,058.5 6.5 14,457.0 14,450.5 2018 0.9 2,644.0 2,643.1 4.3 9,323.1 9,318.8 1.4 3,212.8 3,211.5 6.5 15,179.9 15,173.4 2019 0.9 2,776.2 2,775.3 4.3 9,789.2 9,785.0 1.4 3,373.5 3,372.1 6.5 15,938.9 15,932.4 2020 (251.4) 2,915.0 3,166.3 (1,176.3) 10,278.7 11,455.0 (775.9) 3,542.1 4,318.0 (2,203.5) 16,735.8 18,939.3
NPV 333.2 4,733.8 4,400.6 1,469.6 12,472.8 11,003.2 923.9 4,900.7 3,976.8 2,776.7 22,157.4 19,380.6 B/C RATIO 12.48 8.49 5.30 7.98 EIRR 47.4% 33.7% 30.4% 35.3% FYRR 41.2% 19.1% 3.5s% 24.5%
NOTES: Cos arefor construction(1994-2000), routine maintenance, pavement remedial work (Year 5) periodic maintenance (Year 15). Construction salvage value @50% of original cost (2020) AddItiol annualroutinemaintenance® YSO,000perkn,remedial works ndperiodicmaintenance @1.5%, and 2.1% respectivelyoforiginalconstructioncost Benefita re dne to diverted highwaytraffic and newlygenerated trafilc and time savingL Table 4.8: SHANGHAI_HANGZHOUEXPRESSWAY: ECONOMC EVALUATIONWITH TOLLING (Y million)
PENGBU-YUHANG (18 K YUHANG-FENGJING (85 K FENGJING-SONGJIANG (27 KM) TOTAL (130 KM) Cost Benefit Net Benefit Cost Benefit Net Benefit Cost Benefit Net Benefit Cost Benefit Net Benefit
1994 163.5 0.0 (163.5) 258.4 0.0 (258.4) 15.0 0.0 (15.0) 436.9 0.0 (436.9) 1995 119.5 0.0 (119.5) 287.0 0.0 (287.0) 237.8 0.0 (237.8) 644.3 0.0 (644.3) 1996 69.7 0.0 (69.7) 321.7 0.0 (321.7) 225.1 0.0 (225.1) 616.4 0.0 (616.4) 1997 169.9 0.0 (169.9) 362.3 0.0 (362.3) 269.1 0.0 (269.1) 801.3 0.0 (801.3) 1998 0.9 216.0 215.1 405.0 0.0 (405.0) 292.8 0.0 (292.8) 698.7 216.0 (482.7) 1999 0.9 315.3 314.4 403.5 0.0 (403.5) 282.3 0.0 (282.3) 686.7 315.3 (371.4) 2000 2.0 460.5 458.5 394.6 0.0 (394.6) 283.2 0.0 (283.2) 679.7 460.5 (219.2) 2001 2.0 521.3 519.3 9.4 544.9 535.6 2.2 423.8 421.7 13.5 1,490.0 1,476.5 2002 9.8 590.2 580.4 9.4 982.3 973.0 2.2 645.6 643.5 21.3 2,218.2 2,196.8 2003 2.0 668.3 666.4 9.4 1,328.7 1,319.4 2.2 737.9 735.8 13.5 2,735.0 2,721.5 2004 2.0 756.9 755.0 9.4 1,798.3 1,788.9 2.2 843.7 841.6 13.5 3,398.9 3,385.4 2005 2.0 857.4 855.5 45.7 2,435.0 2,389.3 26.2 965.0 938.8 73.9 4,257.5 4,183.6 O 2006 2.0 932.6 930.7 9.4 2,748.0 2,738.6 2.2 1,070.4 1,068.2 13.5 4,750.9 4,737.5 2007 2.0 1,014.7 1,012.7 9.4 3,102.0 3,092.7 2.2 1,187.6 1,185.5 13.5 5,304.3 5,290.8 2008 2.0 1,104.2 1,102.2 9.4 3,502.8 3,493.4 2.2 1,318.3 1,316.1 13.5 5,925.2 5,911.7 2009 2.0 1,201.8 1,199.9 9.4 3,956.5 3,947.2 2.2 1,463.9 1,461.7 13.5 6,622.2 6,608.7 2010 2.0 1,308.5 1,306.5 9.4 4,470.5 4,461.2 2.2 1,626.2 1,624.1 13.5 7,405.2 7,391.8 2011 2.0 1,418.7 1,416.7 9.4 4,876.9 4,867.5 2.2 1,754.9 1,752.8 13.5 8,050.5 8,037.0 2012 13.0 1,538.4 1,525.5 9.4 5,321.6 5,312.2 2.2 1,894.4 1,892.2 24.5 8,754.4 8,729.9 2013 2.0 1,668.6 1,666.6 9.4 5,808.5 5,799.2 2.2 2,045.4 2,043.3 13.5 9,522.6 9,509.1 2014 2.0 1,810.2 1,808.2 9.4 6,341.8 6,332.5 2.2 2,209.2 2,207.0 13.5 10,361.2 10,347.7 2015 2.0 1,964.2 1,962.2 60.2 6,926.1 6,865.9 35.8 2,386.8 2,351.0 98.0 11,277.1 11,179.1 2016 2.0 2,062.4 2,060.4 9.4 7,272.4 7,263.1 2.2 2,506.2 2,504.0 13.5 11,841.0 11,827.5 2017 2.0 2,165.5 2,163.6 9.4 7,636.1 7,626.7 2.2 2,631.5 2,629.3 13.5 12,433.1 12,419.6 2018 2.0 2,273.8 2,271.8 9.4 8,017.9 8,008.5 2.2 2,763.0 2,760.9 13.5 13,054.7 13,041.2 2019 2.0 2,387.5 2,385.5 9.4 8,418.8 8,409.4 2.2 2,901.2 2,899.0 13.5 13,707.4 13,694.0 2020 (259.3) 2,506.9 2,766.2 (1,202.2) 8,839.7 10,041.9 (800.7) 3,046.2 3,847.0 (2,262.2) 14,392.8 16,655.0
NPV 399.2 4,114.1 3,714.9 1,519.7 10,726.6 9,206.9 950.1 4,214.6 3,264.6 2,868.9 19,055.3 16,186.4 B/C RATIO 10.31 7.06 4.44 6.64 EIRR 43.6% 31.6% 28.1% 32.8% FYRR 34.4%/ 16.1% 19.7% 20.5%
NOTES: Costs are for construction (1994-2000),routine maintenance,pavement remedial work (Year 5) periodic maintenance(Year 15). Construction salvagevalue @ 50% oforiginal cost (2020). Additional annual routine maintenance(} Y50,000 per kIn, remedial works and periodic [email protected]%, and 2.11%respectively oforiginal construction cost Annual toll operations cost Y60,000/0m. Benefits are due to diverted highway traMrc and newly generatedtraffic and time savings. Table 4.9: SHANGHA-HANGZHOUEXPRESSWAY: ECONOMIC EVALUATION wrriT TOLLING ANDwrrH ROAD SAFETYPROGRAM MPROVEMENTS (Y million)
PENGBU-YUHANG (18 KM) YUHANG-FENGJING (85 KM) FENGJING-SONGJIANG (27 1M) TOTAL (130 KM) Cost Benefit Net Benefit Cost Benefit Net Benefit Cost Benefit Net Benefit Cost Benefit Net Benefit
1994 163.5 0.0 -163.5 258.4 0.0 -258.4 15.0 0.0 -15.0 436.9 0.0 -436.9 1995 119.5 0.0 -119.5 278.0 0.0 -278.0 237.8 0.0 -237.8 635.3 0.0 -635.3 1996 69.7 0.0 -69.7 321.7 0.0 -321.7 225.1 0.0 -225.1 616.4 0.0 -616.4 1997 169.9 0.0 -169.9 362.3 0.0 -362.3 269.1 0.0 -269.1 801.3 0.0 -801.3 1998 0.9 216.0 215.1 405.0 0.0 -405.0 292.8 0.0 -292.8 698.7 216.0 -482.7 1999 0.9 315.3 314.4 403.5 0.0 -403.5 282.3 0.0 -282.3 686.7 315.3 -371.4 2000 2.0 460.5 458.5 192.9 0.0 -192.9 116.6 0.0 -116.6 311.4 460.5 149.1 2001 2.0 521.3 519.3 9.4 304.3 295.0 3.0 423.8 420.9 14.3 1,249.4 1,235.1 2002 9.8 590.2 580.4 9.4 626.4 617.0 3.0 645.6 642.7 22.1 1,862.2 1,840.1 2003 2.0 668.3 666.4 9.4 968.5 959.2 3.0 737.9 735.0 . 14.3 2,374.8 2,360.5 2004 2.0 756.9 755.0 9.4 1,500.1 1,490.7 3.0 843.7 840.8 14.3 3,100.7 3,086.4 2005 2.0 857.4 855.5 42.6 2,327.8 2,285.2 24.5 965.0 940.5 69.1 4,150.2 4,081.1 2006 2.0 932.6 930.7 9.4 2,663.7 2,654.3 3.0 1,070.4 1,067.4 14.3 4,666.6 4,652.3 > 2007 2.0 1,014.7 1,012.7 9.4 3,048.7 3,039.4 3.0 1,187.6 1,184.7 14.3 5,251.0 5,236.7 2008 2.0 1,104.2 1,102.2 9.4 3,490.3 3,480.9 3.0 1,318.3 1,315.3 14.3 5,912.7 5,898.4 2009 2.0 1,201.8 1,199.9 9.4 3,996.7 3,987.4 3.0 1,463.9 1,460.9 14.3 6,662.5 6,648.2 2010 2.0 1,308.5 1,306.5 9.4 4,577.9 4,568.5 3.0 1,626.2 1,623.3 14.3 7,512.6 7,498.3 2011 2.0 1,418.7 1,416.7 9.4 4,975.6 4,966.2 3.0 1,754.9 1,752.0 14.3 8,149.2 8,134.9 2012 13.0 1,538.4 1,525.5 9.4 5,409.5 5,400.2 3.0 1,894.4 1,891.4 25.3 8,842.3 8,817.0 2013 2.0 1,668.6 1,666.6 9.4 5,883.2 5,873.8 3.0 2,045.4 2,042.5 14.3 9,597.2 9,582.9 2014 2.0 1,810.2 1,808.2 9.4 6,400.4 6,391.1 3.0 2,209.2 2,206.2 14.3 10,419.8 10,405.5 2015 2.0 1,964.2 1,962.2 55.9 6,965.4 6,909.5 33.1 2,386.8 2,353.7 91.0 11,316.4 11,225.4 2016 2.0 2,062.4 2,060.4 9.4 7,313.7 7,304.3 3.0 2,506.2 2,503.2 14.3 11,882.3 11,868.0 2017 2.0 2,165.5 2,163.6 9.4 7,679.4 7,670.0 3.0 2,631.5 2,628.5 14.3 12,476.4 12,462.1 2018 2.0 2,273.8 2,271.8 9.4 8,063.4 8,054.0 3.0 2,763.0 2,760.1 14.3 13,100.2 13,085.9 2019 2.0 2,387.5 2,385.5 9.4 8,063.4 8,054.0 3.0 2,901.2 2,898.2 14.3 13,352.0 13,337.7 2020 -259.3 2,506.9 2,766.2 (1,098.9) 8,063.4 9,162.3 -716.9 3,046.2 3,763.2 -2075.1 13,616.5 15,691.6
NPV 399.2 4,114.1 3,714.9 1,425.0 10,254.5 8,829.6 880.4 4,214.6 3,334.2 2704.6 18,583.2 15,878.7 B/C RATIO 10.3 7.2 4.8 6.9 EIRR 43.6% 30.6% 28.8% 32.5% FYRR 30.7% 8.6% 19.1% 18.4%
NOTES: Costs are for construction (1994-2000),routine maintenance,toll operations, pavement remedial work (Year 5) periodic maintenance(Year 15).Construction salvagevalue at 50% of original cost (2020). Additional annual routine maintenance(_ Y50,000 per km, remedial works and periodic maintenance@ 1.5%, and 2.1% respectively of original construction cost Annual toll operation cost @ 60,000 Yuan/km. Benefits are due to diverted highway trafric, and newly generated trarnc, and time savings. Table 4.10: SHANGHAI-HANGZHOUEXPRESSWAY: ECONOMIC EVALUATIONWITH TOLLING AND ROAD SAFETY IROVEMEwNS - LOW GROWTH AND LOW DIvERsION SCENARIO (Y million)
PENGBU-YUHANG(18 K YUHANG-FENGJING(85 KM) FENGJING-SONGJIANG(27 KW) TOTAL (130 KMV) Cost Benefit et Benefit Cost Benefit Net Benefit Cost Benefit et Benefit Cost Benefit Net Benefit
1994 163.5 0.0 -163.5 258.4 0.0 -258.4 15.0 0.0 -15.0 436.9 0.0 -436.9 1995 119.5 0.0 -119.5 278.0 0.0 -278.0 237.8 0.0 -237.8 635.3 0.0 -635.3 1996 69.7 0.0 -69.7 321.7 0.0 -321.7 225.1 0.0 -225.1 616.4 0.0 -616.4 1997 169.9 0.0 -169.9 362.3 0.0 -362.3 269.1 0.0 -269.1 801.3 0.0 -801.3 1998 0.9 82.1 81.2 405.0 0.0 -405.0 292.8 0.0 -292.8 698.7 82.1 -6.16.6 1999 0.9 112.3 111.4 403.5 0.0 -403.5 282.3 0.0 -282.3 686.7 112.3 -574.3 2000 2.0 153.9 151.9 192.9 0.0 -192.9 116.6 0.0 -116.6 311.4 153.9 -157.6 2001 2.0 174.8 172.8 9.4 71.2 61.9 3.0 144.4 141.5 14.3 390.5 376.2 2002 9.8 198.6 188.8 9.4 123.2 113.8 3.0 223.8 220.8 22.1 545.5 523.4 2003 2.0 225.6 223.7 9.4 159.9 150.6 3.0 260.1 257.2 14.3 645.7 631.4 2004 2.0 256.4 254.4 9.4 207.9 198.6 3.0 302.6 299.7 14.3 767.0 752.7 2005 2.0 291.4 289.4 42.6 270.8 228.2 24.5 352.3 327.8 69.1 914.5 845.3 2006 2.0 320.0 318.0 9.4 379.7 370.4 3.0 395.0 392.1 14.3 1094.8 1080.5 2007 2.0 351.5 349.5 9.4 533.1 523.7 3.0 443.1 440.2 14.3 1327.7 1313.4 2008 2.0 386.2 384.2 9.4 749.1 739.7 3.0 497.3 494.3 14.3 1632.6 1618.3 2009 2.0 424.4 422.5 9.4 1053.8 1044.5 3.0 558.3 555.3 14.3 2036.5 2022.2 2010 2.0 466.6 464.6 9.4 1484.3 1474.9 3.0 627.0 624.0 14.3 2577.9 2563.6 2011 2.0 479.2 477.2 9.4 1691.1 1681.7 3.0 669.9 667.0 14.3 2840.2 2825.9 2012 13.0 492.3 479.3 9.4 1927.3 1917.9 3.0 716.1 713.1 25.3 3135.6 3110.4 2013 2.0 505.8 503.8 9.4 2197.1 2187.7 3.0 765.8 762.8 14.3 3468.6 3454.3 2014 2.0 519.7 517.8 9.4 2505.4 2496.1 3.0 819.3 816.3 14.3 3844.5 3830.2 2015 2.0 534.2 532.2 55.9 2858.0 2802.1 33.1 877.0 843.8 91.0 4269.2 4178.1 2016 2.0 548.4 546.4 9.4 3000.9 2991.6 3.0 920.8 917.8 14.3 4470.1 4455.8 2017 2.0 563.1 561.1 9.4 3151.0 3141.6 3.0 966.8 963.9 14.3 4680.9 4666.6 2018 2.0 578.2 576.2 9.4 3308.5 3299.2 3.0 1015.2 1012.2 14.3 4901.9 4887.6 2019 2.0 593.8 591.8 9.4 3308.5 3299.2 3.0 1066.0 1063.0 14.3 4968.2 4953.9 2020 -259.3 609.9 869.2 -1098.9 3308.5 4407.4 -716.9 1119.2 1836.2 -2075.1 5037.6 7112.8
NPV 399.2 1325.0 925.8 1425.0 3067.1 1642.1 880.4 1552.4 672.0 2704.6 5944.5 3239.9 B/C RATIO 3.3 2.2 1.8 2.2 EIRR 25.3% 17.6% 17.12% 18.64% FYRR 11.7% 2.0% 6.5% 5.8% NOTES: Cost are for construction (1994-2000),routine maintenance,toll operations, pavement remedial work (Year 5), periodic maintenance(year 15), construction salvagevalue ( 50°/. of original cost (2020);Additional annual routine maintenance@ Y50,000 per km, remedial works and periodic maintenance@ 1.5%, and 2.1% respectively of original construction costs. Annual toll operation costs are Y 60,000/km. For traMc growth assumptionssee para 4. 17. Benefit are due to diverted traMc, consequentsavings in vehicle operating coats, and time savings, and newly generated traMc.. Table 4.11: SHANGHAI-HANGZHOUExPRESSWAY: SENSITnvrrY ANALYSIS (with Road Safety Program improvements and tolling)
Base Case Cost Overrun (3) Benefit Reduction (4) Cost Overrun and Bencfit Reduction (5)
EIRR NPV EIRR NPV EIRR NPV EIRR NPV (percent) (Y billion) (vercent) (Y billion) (percent) (Y billion) (percent) (Y billion)
Expressway (without Road Safety Program) 32.8% 16.19 27.6% 14.92 19.6% 3.88 16.1% 2.62
Expressway(2) (with Road Safety Program) 32.5% 15.88 27.2% 14.53 18.5% 3.17 14.9% 1.82
Notes: (1) All scenarios assume that the Shanghai-Hangzhou Expressway is operated as toll road. (2) The rates of return relate only to the Expressway investment. Sensitivity results vary based on whether or not the Road Safety Program is implemented on National Route 320, a parallel highway in the corridor. (3) Cost overrun of 50%. (4) Benefit reduction triggered by traffic growth reduction, generated traffic reduction each by 50%. (5) Reflects scenarios (1) and (2) occurring simultaneously. Table 4.12: RoAD SAFET PROGRAM: ECONOMIC EVAWATON (Y million)
Capital VOC Time Acddent Total Codt (2) Savings Savings Savings Benefits Net Benefit
1994 31.6 0.0 0.0 0.0 0.0 -31.6 1995 7.2 0.0 0.0 0.0 0.0 -7.2 1996 79.1 0.0 0.0 0.0 0.0 -79.1 1997 61.9 0.0 0.0 0.0 0.0 -61.9 1998 0.0 129.2 18.4 32.4 179.9 179.9 1999 0.0 197.9 31.2 38.6 267.7 267.7 2000 0.0 33.3 3.7 34.0 71.0 71.0 2001 0.0 42.0 5.0 39.2 86.2 86.2 2002 0.0 52.9 6.8 45.3 105.0 105.0 2003 0.0 66.7 9.1 52.4 128.2 128.2 2004 0.0 84.1 12.4 60.5 156.9 156.9 2005 0.0 106.0 16.8 69.9 192.6 192.6 2006 0.0 132.7 21.5 77.6 231.8 231.8 2007 0.0 166.2 27.5 86.3 280.0 280.0 2008 0.0 208.2 35.3 95.8 339.3 339.3 2009 0.0 260.8 45.2 106.5 412.5 412.5 2010 0.0 326.7 57.9 118.3 502.8 502.8 2011 0.0 354.8 62.1 124.2 541.1 541.1 2012 0.0 385.3 66.6 130.5 582.3 582.3 2013 0.0 418.4 71.4 137.0 626.8 626.8 2014 0.0 454.4 76.6 143.8 674.9 674.9 2015 0.0 493.5 82.2 151.0 726.7 726.7 2016 0.0 518.2 86.3 158.6 763.1 763.1 2017 0.0 544.1 90.6 166.5 801.2 801.2 2018 -89.9 571.3 95.1 174.8 841.3 931.2
NPV 124.3 814.9 131.0 329.5 1,275.3 1,151.0 B/C RATIO 10.3 EIRR 54.4% FYRR 78.8%
(1) Annual traffic growth approx: Standard = 21% to 1995, 14% to 2000, 10%thereafter. (2) Constructionsalvage value at 50% of originalconstruction cost (2018). - 109 -
TABLE 4.13: RoAD SAFhFY PROGRAM: SENSIIVIVTYANALYSIS
Scenario EIRR NPV (in per cent) (in million Yuan)
Base Case 54.4 1,151.0
Cost increase scenario
Cost overrun of 50 % 41.8 1,088.9
Benefit reduction scenarios
Low traffic growth 30.8 416.5
Low traffic growth plus lower accident reduction (40%) 28.4 359.6
Low traffic growth plus lower accident reduction (20%) 26.0 302.8
Scenario assuming both cost increase and benefit reduction
Cost overrun, low growth, and 20% accident reduction 19.1 240.6 TABLE 4.14: OVERALL ECONOMIC EVALUATIONFOR SHANGHAI-ZEJANG HIGHWAY PROJECr (Y MILLION)
Expressway (130km) Road Safety Program TOTAL Cost Benefit Net Benefit Costs Benefits Net Benefit Costs Benefits Net Benefits
1994 436.89 0.00 -436.89 31.56 0.00 -31.56 468.45 0.00 -468.45 199S 635.27 0.00 -635.27 7.24 0.00 -7.24 642.51 0.00 -642.51 1996 616.41 0.00 -616.41 79.13 0.00 -79.13 695.54 0.00 -695.54 1997 801.26 0.00 -801.26 61.87 0.00 -61.87 863.13 0.00 -863.13 1998 698.71 215.97 -482.74 0.00 179.91 179.91 698.71 395.88 -302.83 1999 686.66 315.28 -371.38 0.00 267.71 267.71 686.66 583.00 -103.66 2000 311.44 460.50 149.06 0.00 70.97 70.97 311.44 531.47 220.03 2001 14.30 1,249.44 1,235.14 0.00 86.22 86.22 14.30 1,335.65 1,321.35 2002 22.14 1,862.24 1,840.11 0.00 105.00 105.00 22.14 1,967.25 1,945.11 2003 14.30 2,374.79 2,360.49 0.00 128.21 128.21 14.30 2,503.00 2,488.70 2004 14.30 3,100.75 3,086.45 0.00 156.94 156.94 14.30 3,257.69 3,243.39 2005 69.10 4,150.24 4,081.13 0.00 192.61 192.61 69.10 4,342.84 4,273.74 2006 14.30 4,666.65 4,652.35 0.00 231.84 231.84 14.30 4,898.49 4,884.19 2007 14.30 5,251.00 5,236.70 0.00 280.02 280.02 14.30 5,531.02 5,516.72 2008 14.30 5,912.69 5,898.39 0.00 339.32 339.32 14.30 6,252.01 6,237.71 2009 14.30 6,662.45 6,648.15 0.00 412.45 412.45 14.30 7,074.91 7,060.61 0 2010 14.30 7,512.58 7,498.28 0.00 502.84 502.84 14.30 8,015.42 8,001.12 2011 14.30 8,149.18 8,134.88 0.00 541.07 541.07 14.30 8,690.24 8,675.94 2012 25.27 8,842.30 8,817.03 0.00 582.32 582.32 25.27 9,424.62 9,399.35 2013 14.30 9,597.25 9,582.95 0.00 626.83 626.83 14.30 10,224.08 10,209.78 2014 14.30 10,419.83 10,405.53 0.00 674.87 674.87 14.30 11,094.70 11,080.40 2015 91.03 11,316.45 11,225.42 0.00 726.74 726.74 91.03 12,043.19 11,952.16 2016 14.30 11,882.27 11,867.97 0.00 763.07 763.07 14.30 12,645.34 12,631.04 2017 14.30 12,476.38 12,462.08 0.00 801.23 801.23 14.30 13,277.61 13,263.31 2018 14.30 13,100.20 13,085.90 -89.90 841.29 931.19 -75.60 13,941.49 14,017.09 2019 14.30 13,352.05 13,337.75 14.30 13,352.05 13,337.75 2020 -2,075.12 13,616.48 15,691.60 -2,075.12 13,616.48 15,691.60
NPV 2,704.55 18,583.23 15,878.67 124.30 1,275.34 1,151.03 2,828.86 19,858.56 17,029.70 B/C RATIO 6.87 10.26 7.02 EIRR 32.49% 54.37% 33.41%
NOTES: Coats are for construction (1994-2000),routine maintenance,toll operations,pavement remedial work (Year 5) periodic maintenance(Year 15).Construction salvagevalue at 50% of original cost (2020). Additional annual routine maintenance(} Y50,000per km, remedial worksand periodic maintenance@ 1.5%, and 2.1% respectivelyof originsl construction coat Annual toll operation cost @ 60,000Yuan/km. Benefits are due to diverted highway tra&Mc,and newly generatedtraffic, Umesavings, and accident reduction. -111- ANNEX 1
MANAGEMENT OF THE HIGHWAY SECTOR IN SHANGHAI AND ZHEJIANG
A. HIGHWAYADMINETRATION
1. The ShanghaiHighway ManagementDepartment (SHMD), under the leadership of the ShanghaiMunicipal Engineering Administration Bureau, is responsiblefor highway planning, construction, maintenance and general administrationof all highways in the municipality. SHMD's activities include fund raising, planning and implementingnew construction projects. Routine administrationactivities include preparation of annual constructionand maintenanceplans, completionof designs for new and upgraded roads, review and approval of constructionbudgets, auditingof constructionunits, conductionof supervision,monitoring, adoption and commissioningof all new constructionprojects, and transferringof commissionedprojects for operationand maintenanceto relevant county (or district) highway managementbureaus.
2. There are 21 administrativeand technicalsections functioning under the Highway ManagementDivision, with a total of 422 staff, including266 engineering and technical professionals. The SHMD has affiliatedbranches and in different localities and a highway managementoffice in each of ten counties. Seven organizationsdirectly below SHMD provide expertise in the areas of road and bridge engineering, municipal engineering, managementof specificexpressways, toll collection,bridge prefabrication,and a technical education. In these subordinate organizations are 1,884 staff, including nearly 300 technicians. About 4,500 staff are working in SHMD's ten county (or district) highway managementdepartments, including300 professionaltechnicians (Chart 1).
3. The ZhejiangProvincial Transport Department(ZPTD) controls all highway and waterway transport undertakings in the Province. The ZPTD reports directly to the ZhejiangProvincial People's Government(ZPG) and acts as an administrativearm of ZPG for planning, budgeting and financingof transport in the Province. However, the ZPTD conforms to the general transport policy and technical guidelines issued by MOC. The Zhejiang Provincial Highway AdministrationBureau (ZPHAB), under the administration of ZPTD, has 190 headquarters staff and is responsiblefor constructionand maintenance of all roads in the Province. Both the ZPTD and the ZPHAB are supported by local administrations the various municipalities, prefectures and counties of the Province. Zhejiang's 11 municipalitiesand prefectures. Each of the 69 counties has responsibility under the municipalityand prefectures for the maintenanceof the county roads. The 11 municipalitiesand prefecturesand the 69 county units have a permanent staff of 8,895, of which technical personnel comprise about 10 percent (Chart 2). -112- ANNEX 1
4. The Zhejiang Provincial ExpresswayProject Executive Commission(ZPEC) is a department level institution, reporting directly to ZPG and responsible for the organization, direction and coordination of the Shanghai-Hangzhou-NingboExpressway Project (includingconstruction of the Hangzhou-NingboExpressway under the Zhejiang Provincial Highway Project). Staff currently number 300, including 120 in offices in the cities along the Hangzhou-Ningbosection, and 100 along the Shanghai-Hangzhousection (Chart 3).
B. STAFF TRAIING
5. To meet the requirementsof highway developmentin ShanghaiMunicipality and ZhejiangProvince, great importance is attached to staff training programs. The training process involves stages of planning and monitoringto improve the quality, management, and benefits of training. The major areas of training include training for technical staff and management;adaptive professional training to deepen various standardization;and emergency training to meet the requirements of absorbing and digesting imported techniques, renewing equipment, and of new technology, new materials, and new equipment. During 1992, SHMD organized more than 100 training classes, involving about 1,400 trainees from a wide variety of departments. The content of training covered contract managementfor engineering,planning, computerized budgeting, quality standards, road administration,management, construction project management,computer skills, and automatedtoll collection.
6. Staff training is offered to highway sector employees in Zhejiang Province through the Transport Cadre School under the administrationof ZPTD, covering the areas of highway managementand technology. Polytechnic students are also trained in the school. In additionto classroomtraining, staff may pursue vocationalstudy, learning from the experiencesof other provincesand municipalities. Practical experiencein construction and managementis afforded through highway units for college and polytechnic students.
C. HIGHWAYPLANNING, BUDGETING AND FINANCING
7. Planning and budgeting for highway sector activities are carried out by the relevant provincial agencies in Shanghai and Zhejiang (paras 1-4 above), with technical guidance and approvals of major investments provided by central and provincial government authorities. The MOC is the central agency coordinating construction of national trunk highways, includingexamination and approval of preliminary design, and, in some cases, including grants for investment (paras 1.16-1.17). Planning for the Shanghai-HangzhouExpressway has involved MOC, State Planning Commission(SPC), State Council at central governmentlevels, and at provincial levels, a coordination team with representatives from municipal government, and construction, foreign economic relations and trade, finance, and engineeringdesign agencies. For smaller scale highway investmentand maintenanceworks in Shanghaiand Zhejiang,implementation responsibility is often assigned to municipal,county, prefecture, or village level transport and highway - 113- ANNEX I
agencies. As with major investmentand recurring expenditures,a system of investment planning, technical reviews and project approvals is used, but would typically be coordinated at the provincial level.
8. SHMD is the operational unit responsiblefor planning and budgeting highway sector activities in Shanghai Municipality. Each year, a yearly construction and maintenanceplan is formulated, early stage design of new reconstru;tion engineering is undertaken, the budget is examined and approved, and qualificationi of contractors are examined. SHMD supervises, inspects, and approves the quality of engineering construction;after completionof works, authority is transferredto countiesor districts for maintenanceand management. ZPTD has overall responsibilityfor planning investments in and maintainingthe Zhejiangprovincial highway network. ZPTD prepares the five-year road development plan and semi-annual budgets using inputs from lower level administrative groups and incorporating national or provincial development policy guidelines and objectives for the plan period.
9. China's highway sector agencies have traditionallyfollowed a balanced budget policy, where proposed highway investment and recurring expenditures are balanced against the revenue earmarked for highway developmentand available road user charges. This pattern was followed in ShanghaiMunicipality and Zhejiang Province until the late 1980's: since then, the matching of revenues and expenditureshas not been possible. Shanghai has adopted measures to expand and diversify funding, including borrowing, trying to attract investmentfrom other sectors, and rationalizationof the environment for private investment. In Zhejiang, a special fund is now maintainedfor the constructionof high grade highways. The fund is capitalizedby contributionsfrom MOC and allocations of earmarked and surplus road user charges.
10. As elsewhere in China, the main source of funds for road construction and maintenancein Shanghai and Zhejiang is the road maintenancefee (RMF). These funds are collected by highway units at different levels and managed by the provincial highway agency. The revenues from road maintenance fees are distributed as follows: (a) 15 percent is remitted to the Ministry of Finance (MOF) as the Energy and Transport Fund; (b) 10 percent is transferred to the State Budget AdjustmentFund; (c) 3 percent is remitted to the traffic police (Public Security Bureau); and (d) 72 percent is retained by provincial highway authorities.
11. The current standards for RMF in Shanghai are based on use and weight of vehicles. The RMF rate is 15 percent of annual revenue for vehicles of state-owned transportationcompanies, 8.5 percent of income for vehiclesof taxi or tourist companies, and 5 percent of income for mass transit vehicles. Vehicles of the communist party and governmentorganizations, public agencies, and schools are exempted from certain RMF fees: there is no RMF collected for cars and jeeps, and a 50 percent reduction for other vehicles. The remaining vehicles in Shanghai pay Y 140 per month per ton capacity as RMF. RMF rates in Zhejiangvary accordingto the type and size of vehicles, as follows: -114- ANNEX 1
15 percent of gross revenue for state transport companies; Y 120 per month per payload ton or Y 120 per monthper 10 passenger seats of vehicles owned by collectiveand private transport companies; and Y 70 per month for passenger cars.
12. The highway department revenues and expenditures in both Shanghai and Zhejiang show a trend of rapidly increasing expenditures for construction and highway reconstructionsince the mid-80s. By 1993, these categoriescomprised 90 percent and 79 percent of expendituresin Shanghaiand Zhejiang,respectively. In ShanghaiMunicipality, total revenues and expendituresfor the highwaysector grew by 29 percent and 37 percent per year respectivelybetween 1985 and 1993. Municipal governmentcontributions have been the fastest-growingcategory of revenues, and RMF revenues have grown at 21 percentper year. The fastestgrowing categories of expenditurewere new constructionand reconstruction at 51 percent per year, followed by periodic maintenance and Expressway/Class I highway construction, both at 30 percent per year. In Zhejiang Province, total revenues and expendituresfor the highway sector grew by 25 percent and 24 percent per year between 1985 and 1993. The fastest growing category of revenues was the fund for high-class highways (para 2.33), at 50 percent per year. The fastest growing categories of expenditurewere expressway constructionat 67 percent per year, and overhead and administrationat 30 percent per year (Attachments1 and 2).
13. Other sourcesof highwaysector funding in Shanghaiand Zhejianginclude vehicle purchase fees, central and provincial governmentgrants, loans raised from domestic and international banks, tolls, surcharges on passenger and freight transport (Zhejiang only), and funds raised from local enterprises (Shanghaionly).
14. Tolls are an increasingly important revenue source for the Shanghai road authorities. In 1993 alone, about $15 million was raised through tolling. At present, all tolls are chargedon a fixed rate basis (i.e., not dependenton distancetravelled). A system of tolling has been introduced on two urban expressways, the Shanghai-Jiadingand Xinzhuang-SongjiangExpressways. Toll standards are based on loading capacity, as follows: vehicles of 2 tons or less, 5 yuan; vehicles over 2 tons and up to 5 tons, 10 yuan; vehicles over 5 tons and up to 10 tons, 20 yuan; and for vehicles over 10 tons, 20 yuan for every 10 tons capacity. Toll revenuesare used for maintenance,loan repayment, administrationof toll operationsand, as available, for new construction.
15. Since March 1993, tolls have also been levied on all vehicles entering Shanghai, through collectionpoints on the ten major roads providing access to the Municipality. The toll standard is based on capacity, as follows: for two- or three-wheel motorcycles, 5 yuan; vehiclesup to 2 tons, 10 yuan; vehicles from 2 tons to tons, 30 yuan; from 5 tons to 10 tons, 70 yuan; and for more than 10 tons, the 10-ton toll plus 30 yuan for each additional 10 tons. Vehiclesregistered in Shanghaipay these tolls in conjunctionwith the RMF, at a rate of 49 yuan per ton per month (or a 25 percent surcharge on the RMF) and therefore are not stopped at the Shanghai border to pay tolls. While an effective fund- -115 - ANNEX 1
raising mechanism,the collectionof tolls at the border creates congestionand obstacles to interprovincialtraffic movement.
16. There are no major tolled highways or expressways in operation in Zhejiang. However, tolls are collectedfor certain bridges and tunnels. Revenuescollected are used to cover the cost of toll managementoperations and repayment of bank loans. Surplus revenue is used for construction and reconstructionof local highw ys. Toll rates are established according to the financing characteristicsof the project aid approved by the provincial government.
D. HIGHWAY ENGINEERING,CONSTRUCTION AND MAINENANCE
17. The design of highway projects in Shanghai and Zhejiang is entrusted to municipaland provincial design institutes. The relevant institutes for highway and bridge design are Shanghai Municipal Engineering Design Institute (SMEDI) and Shanghai Municipal ConstructionDesign Institute (SMCDI). SMEDI is a special design unit for municipal engineering and public engineering, qualified to undertake the design of plumbing work, gas heating,road, bridges, tunnel, flood control works, and environmental protection engineeringfor first class cities and the survey and geologicalexamination for first class engineering. SMEDI has staff of more than 900, including 650 professional technicians,in which 170 are senior technicians. SMCDI has staff of 322, including 257 professional techniciansand senior staff. For less complicatedprojects, universities and other institutes (such as the design institutes of Tongji University, Design Institute of ShanghaiMunicipal ConstructionInstitute, and ShanghaiMunicipal Engineering Research Institute) are retained. Design of the Shanghai expressway section under the proposed project has been entrusted to SMEDI, which also completed design of the adjacent Xinzhuang-Songjiangsection of the Shanghai-HangzhouExpressway.
18. The construction of road projects is usually arranged by provincial highway authorities in Shanghai and Zhejiang under administrativeplanning, mobilizingdifferent direct-reporting units and highway bureaus to carry out construction works. For key constructionprojects, engineeringbureaus at municipallevel take direct responsibility,but this responsibilitymay be devolved for smaller-scaleworks. It is becomingmore common to award civil works contracts through competitive bidding and to hold contractors responsiblefor the timely completionof the project, quality, price, and safety. However, implementationexperience suggests that the provincial highway agencies would benefit from more specific knowledgeof and practical experiencein managing the construction under contracts.
19. Road and bridgeprojects in ZhejiangProvince are engineeredby the planning and design institutes at provincial, prefecture, and county levels. The Zhejiang Provincial TransportDesign Institute(ZPTDI) is responsiblefor designingall major road, bridge, and tunnel projects, with total staff of 370 including 158 professional engineers. - 116- ANNEX I
20. After the completionof constructionand inspection, the responsibilityfor roads is transferred to county (district) highway managementbureaus for routine maintenance. Maintenance is carried out through mostly labor intensive means: however, in recent years, the level of mechanization of road maintenance, facilitated by the import of specializedequipment, has reducedlabor intensity. There are currently 2,760 maintenance staff and engineers working for the SHMD including 2,491 in maintenance, 182 in gardening, and 87 in administration.
21. Roads are examinedby provincial and lower-levelhighway bureaus on a regular basis to ensure that MOC's Highway Maintenance Standards are being met. Among MOC's rating criteria (fine, good, poor, bad), the percent of total mileage in "fine' and "good" categories is monitored. Maintenance operations are divided between routine maintenance and periodic (heavy) maintenance. Periodic maintenance is performed accordingto criteria of pavementstructure, traffic volume and road importance, and based on actual damagedof pavement. In ZhejiangProvince, for example,periodic maintenance is carried out every seven to eight years or when daily traffic volume exceeds 5,000 to 7,000 vph/d on bituminoussurfaces. The average annual cost of routine maintenancefor all roads in Shanghaiwas 14,900 yuan per km in 1993. The average cost of maintenance for county and village roads in Zhejiangin 1993 ranged from 800 to Y 1,200 per km. The average cost of maintenancefor national roads in Zhejiang in 1993 was Y 14,300 per km. -117- ANNEX I
SHANGHAI: HIGHWAYREVENuES AND ExPENDrIURES, 1985-93 (Y million)
Compound annual 1985 1986 1987 1988 1989 1990 1991 1 1992 1993 growth
Revenues
Road maintenance fee 200.9 241.2 366.2 381.7 428.1 484.9 649.7 760.9 930.6 21% Fees collected from local enterprises - - - - 15.9 15.8 13.5 275.3 30.0 17% MOC contribution - - - - 20.0 14.0 22.6 95.8 33.4 14% Vehicle purchase fee - - (2.8) 0.9 26.7 15.5 20.7 15.2 52.8 - Municipal government contribution - - - 0.7 0.3 - - 100.0 369.5 270% Toll revenue ------122.0 -
Total Revenues 200.9 241.2 363.5 332 491.0 S302 1247.210. 1538.3 2
Expenditures
New construction and reconstruction 51.1 73.0 166.8 212.2 336.1 355.3 466.2 713.0 1,358.6 51% Routine maintenance 21.3 20.0 17.2 53.5 79.5 68.0 108.4 629.4 55.9 13% Periodic maintenance 9.8 10.9 15.7 21.0 17.6 21.2 26.7 60.1 80.1 30% Subsidy for county and village roads 10.4 15.0 20.1 20.6 20.2 7.2 19.8 57.0 35.5 17% Expressway and Class I highway construction 66.0 63.0 56.9 108.0 91.0 50.0 33.0 155.0 545.0 30% Administration and other 19.91 19.18 51.07 28.7 27.12 34.42 40.38 64.69 107.9 24%
Total Exxpenditures 178 5 201.1 327.7 444.0 571.5 . 694.4 1679.2 2.183.0 2
Surplus/(deficit) /a 22.4 40.1 35.8 (60.8) (80.5) (5.8) 12.0 (432.0) (644.7)
/a Deficits are met through short-tcrm borrowing from the Shanghai Bank of Construction and other financial institutions. Surplus funds arc also managed through (deposits in) banks.
Source: Shanghai Municipal Engineering Administration Bureau. - 118 - ANNEX I
ZHEJANG: HIGHWAYREVENuES AND EXPENDiTuRES, 1985-93 (Y million)
Compound annual 1985 1986 1987 1988 1989 1990 1991 1992 1993 growth/"
Revenues
Road maintenance fee 223.5 276.8 342.5 381.6 430.0 470.6 597.7 677.9 916.0 19% Provincial subsidy 7.9 20.9 21.2 7.0 4.6 8.0 4.0 2.0 - -18% MOC subsidy - 47.0 39.0 58.5 62.5 42.0 69.1 55.6 145.0 17% Fund for high-class highways - - - 39.5 242.2 237.2 247.6 282.4 299.0 50%
Total Revenues 231.4 344.7 402.7 486.6 739.3 757.8 918.4 1.017.9 1.360.0 25%
Expenditures
Expresswayconstruction - - - - 44.5 36.7 97.2 81.2 343.0 67% Other construction and upgrading 173.7 243.9 327.3 317.7 377.2 216.2 291.7 375.9 697.9 19% Routine maintenance 25.6 33.4 38.0 48.0 52.1 53.6 51.9 134.3 117.3 21% Periodic maintenance 22.4 32.1 41.6 52.7 45.6 45.0 54.7 68.3 78.2 17% Overhead and other 9.6 9.8 11.5 16.6 37.0 15.5 35.9 31.0 78.0 30%
Total Expenditures 231.3 319.2 418.4 435.0 556.4 367.0 531.4 690.7 1.314.4 24%
Surplus/(deficit) /b 0.1 25.5 (15.7) 51.6 182.9 390.8 387.0 327.2 45.6
/a Growth rate for the 1985-93 period or for shorter periods, as appropriate. /b Surpluses and deficits (including short-term borrowing, as needed) are reflected in the fund for high-class highways, managed by the Provincial Finance Bureau.
Sources: Zhejiang Provincial Expressway Project Executive Comnmission and Zhejiang Provincial Highway Administration Bureau. Chart 1: ORGANIZATIONOF THE SHANGHA HIGHWAY MANAGEMET DEPARTMENT
Shanghai Municipal Engineering Administration Bureau (SMEAB)
Shanghai Highway Management DepartmIt
ExpresswayManagemient Deprtments
ShagShanghai - gzhou X Joading Expressway (Huhang) Songjifag Expressway EngineerinigCon- Expressway Management structionExecu- Management Department tive Commission Department
Administration
Orie MLhnicipal To" Brfdg Highway Engineering Engineering Collection Prefabricating Technical Team Team Station Factory Schoot
County and District Highway ManaIement Departments
Baoshan Shanghai Chuansha Fengx an Songj iang [nshan| ngpu Jiading [chong Districtl | ount County County oun oun oun oun Chart 2: KEY ORGANIZATIONSIN THE ZHEIANG TRANSPORT SECTOR
ZhejLang Provincial People's Government
ZhejLang Provincial.] Transport Department
Shipping Highway Transport Transport Transport Administration Administration Design Research Transport Cadre Buteau Bureau Institute Institute School School
Genera Panning Audting Mechanical & Materials T1rasportation Engineering Manag Supervisioni Office SectionSection Section Section Section Section Section
Source: ZPTD. Chart 3: ORGANIZATIONOF THE SHANGHAI-HANGzUOu-NINGBO EXPRESSWAYADMINSTRATTON IN ZHEJIANG PROVINCE
Zhejiang Provincial People's Government I Zhejiaug Provincial Shanghai- Hangzhou-Ningbo Expressway Project Steering Committee (A Temporary Body) I Zhejiang Provincial Shanghai- Hangzhou-NingboExpressway -Branch Offices (220)- Project Executive Commission
] anOffice_ 80 (Employer'sStaff) (94)
eration neer- Land Acqui- Planning Office Super- Hangzho oxin o Yung Jiaxing Management Control ing & sition & Re- & of Di- vision Haaement settlement Finance rectors (12)()(13) (10) (16) (27) (14) (40) (40) (40) (20) (80)
Source: ZPEC. - 122 - ANNEX 2
ROAD SAFETY PROGRAM
A. INTRODUCTION
1. The proposed Shanghai-ZhejiangHighway Project has as one of its main objectivesthe improvementof road safetyin the Shanghai-Hangzhoucorridor. This Annex provides backgroundinformation on road safetyin China, provides a more in-depthreview of road safetyin Jiaxing Municipalityand then details the pilot Road SafetyProgram (RSP) included in the proposed project.
2. The People's Republic of China has included in its series of five-year plans at national and local levels an ambitiousprogram for developmentof the road network. During the past four decades, over 1.02 million kilometers of highways have been constructedand consequentlyvehicle numbers have also increasedsubstantially during this period. China imported its first motor vehicle in 1901; by 1949, registrations were approximately50,000. By 1978, registrationshad grown to 1.36 million, and by the end of 1993, close to 8.8 million. Vehicletraffic growth rates of up to 30 percent per annum are recorded on some roads in the Shanghai-Hangzhoucorridor; nationally, the average growth rate in registered motorvehicles is now around20 percent per annum. Road traffic accidentshave, of course, followedthe broad upward trend in growth of traffic, resulting in an ever-increasingtoll on human life and damage to property. Road safety is now becoming recognized as a serious problem (paras 1.15-1.16).
3. Road safety in Jiaxing Municipalityfollows a similar pattern to that which exists in other southern provinces of China. This municipality,chosen for the RSP pilot program, represents a single administrativearea within Zhejiang Province that contains major portions of the proposed Shanghai-HangzhouExpressway as well as National Route (NR) 320, one of the principal highway routes between Shanghai and Hangzhou.
4. The object of the RSP is to reduce, and eventually to reverse, the current trend in the growth of accidentsin the Shanghai-Hangzhoucorridor. Clearly this will not be possible within the short duration of the RSP. For this reason the program contains elementsof technicalassistance, training and institutionbuilding to support the engineering proposals, so that an improvement in general road safety procedures and institutional capability will result, increasing the likelihood of sustainable road safety activity in the longer term.
B. RoAD SAFETYIN CHNA
5. Althoughvehicle ownership levels in Chinaare still very low, the motorized fleet has sustainedvery high rates of growth in recent years. If the current growth rates - 123 - ANNEX 2
(at or above 20 percent per year in some areas) continue, the year 2000 will see a quadrupling of existing traffic levels. While China's transport network has also been developing rapidly, the density of the network remains comparativelylow. The annual increases in road network length have only been around 6 percent to 7 percent, clearly failing to keep pace with the growing traffic demand.
6. Although road safety is already a major problem in China, the complex nature of the problem is only beginningto be addressed; detailed information on road accidents at a national level is not readily available. It is therefore not possible to make reliable national comparisons of accident characteristics. Nevertheless, based on information obtained from some areas of China, it can be estimated that national road accident fatality rates are (in relation to number of motor vehicles) as much as 30 times those experienced in the industrializedworld. While a high rate would be expected in a country at early stages of motorization,the level, and the fact that current accident rates suggest an ever-increasingnumber of accidents, point to the seriousnessof the issue and the continual, expandingdrain on resources.
7. An earlier World Bank study with the Chinese Institute of Highwaysl/ indicated that road accidents accounted for around 40 percent of all accidental deaths in the Sichuan area. Since traffic levels in China have at least doubled since that time, it is likely that this proportion could have increased. Even if it has remained static this represents a huge loss in manpower to the economy of China. It has been estimated 2/ that road accidents cost developing countries at least 1 percent of their Gross Domestic Product, a cost which such countries can ill afford. Evidence from the above-mentioned study indicates that China is experiencing a similar magnitude of losses due to road accidents.
8. Some road safety work is carried out at a national level in China, and the multi-disciplinarynature of the problem is recognized. For instance, there is a system of road safety education built in to the school curriculum and compulsorydriver education has been introduced as part of the driver licensing procedure. There is also evidenceof attempts at standardization to ensure safer road designs, for example, through the formulationof national standards for the design of highways. These documentsprovide specificationsfor many safetyaspects of highwaydesign includingsight distances, merging lanes and minimum radii. The Road Traffic Signs and Markings manual contains details of traffic signs, road markings and sets out how various types of junctions should be laid out. Unfortunately,many of these standardswere developedwhen traffic levels were low; some are no longer relevant and require revision.
9. Additionaldraft standardsfor the newly introduced expresswayshave been drawn up more recently to deal with a number of issues, such as grade separated interchanges,not coveredby the general design standards,but as many of those responsible
1/ China Road Safety Project (Sichuan Pilot Study), December 1987.
2/ Information Note, Road Safety in Developing Countries, Overseas Unit, Transport and Road Research Laboratory. Dr. G.D. Jacobs et al. 1987. - 124 - ANNEX 2 for road safety and highway design in China cannot themselves drive, their ability to recognize safety-relateddesign problemsis diminished. The result is that Chinese design standards are not always appropriate, or appropriately applied. The revision of these standards should be a longer term goal.
C. TH ExsTNG ROAD SAFETYSITUATION IN JIANG
10. The Shanghai-Hangzhoucorridor is situated on the southeastern coastal fringe of China to the southof the Yangtzeriver and southwestof Shanghai. The corridor is very flat and is protected from the sea by a dike running the whole length of the coastline. This coastal area includes Provincial Route 01. The region dominated by Shanghai,extends betweenShanghai and Hangzhouin a mainlyagriculture-intensive area. In comparison to much of the rest of China, the area is densely developed and, as a consequence, has a higher density of roads. As a result, the area exhibits a particularly high level of traffic growth; some roads have annual rates of increase in traffic volume of around 30 percent, and average overall exceeded20 percent during the past five years.
11. The Zhejiang section of the Shanghai-HangzhouExpressway is contained within three municipalitieswith only small sections in two of the municipalities. The corridor runs the entire width of Jiaxing Municipality; for this reason, Jiaxing has been chosen as the location for the proposed RSP.
12. Information on the existing road safety situation has been obtained from discussionswith the Traffic Policy section of the Public Security Bureau. It is apparent that current accidentlevels are of concern to the authorities. In Jiaxing 1,638 people have been killed and over 22,000 accidents have occurred on the roads in the 10-year period from 1983 to 1992. The numbers being killed and injured annually has increased steadily in recent years: deaths have increasednearly 400 percent since 1985 while the number of persons injured has increasedby 250 percent. In 1992 alone, 288 persons were killed and 474 persons were crippled or injured in the 2,727 road accidents reported to the police. Increasing numbers of accidents lead to more and more manpower requirements for the police. Recordingaccidents and the processingof the prosecutionswhich ensue is an ever increasing task.
13. At the same time, road accidents are often under-reported to the police. Despite this, the reported road accident growth rate in Jiaxing Municipalityis currently running at about 3 percent to 5 percent per annum. This situation will exist for many years, even if the authorities are able to allocate sufficient resources to ensure a turn- around in the accident rate. Therefore, for the foreseeable future, there will be a requirement for the municipalauthorities to devote extra resources to the Traffic Police, emergencyservices, medical services includinghospitals and engineeringrepair services. The table below indicates how accidents have increased in the municipality over recent years.
14. In order to appreciate the true scale of the accident problem in a country it is commonpractice to relate traffic accidentsto demographicor other data, and to compare such relationships between countries. The most meaningful statistic for international - 125 - ANNEX 2
REPORTED AccIDENTsIN JIAxiNGMUNICIPALxTY
Accident Year /a Type 83 84 85 86 87 88 89 90 91 92
Fatal 71 63 74 67 134 181 173 221 274 268 Serious 151 144 186 174 2351 281 289 324 368 357 injury Slight injury 387 517 742 493 2,049 2,132 22,42 1,593 2,065 2,102 & property damage Total 609 724 1,002 734 2,418 2,594 2,704 2,138 2,707 2,727
/a From 1987, data on both rural and urban accidents were included. Prior to 1987, only rural accidents were reported because different agencies were responsible for collecting data in rural and urban areas.
Source: Jiaxing Municipality Traffic Police records. comparison is the "accident rate" (in units of accidents of deaths per million vehicle kilometers). At this time, however, adequate information on vehicle usage is not available to be able to calculate this rate for the whole of Jiaxing. Information is, however, available for the NR 320 where the accident rate is nearly 2.7 per million vehicle-km. Compared to a similar standard of road in the most developed countries this rate is four to six times higher. While China's unique situation as a country in the early stages of motorization as China is noted (para 2), the seriousness of the road safety problem should not be dismissed.
15. Cost of Road Accidents to the Jiaxing Economy. Apart from the human losses incurred, road accidents can also be shown to be a very serious drain upon the economy of Jiaxing. International research indicates that annual losses from road accidents (when all related costs such as medical treatment, lost production, property damage, police and court costs are taken into account) typically amount to 1-2 percent of Gross Domestic Product (GDP) of a country. In China, Gross Output Value of Agriculture and Industry (GOVAI) can be used as a proxy for GDP. The equivalent losses resulting from road accidents in Jiaxing in 1992 would have been around 1-2 percent of GOVAI. This gives an annual loss from road accidents in Jiaxing alone of between US$28 and US$56 million. Specific research undertaken to establish typical accident costs in China, as part of an earlier study in 1987 (para 7) indicate that the absolute minimum cost of road accidents in Jiaxing in 1987 was likely to have been nearly US$7 million per year. The studies showed that the true costs were probably much higher than this figure. If these values are updated at 10 percent per annum, the minimum total cost of accidents in 1992 would have been around $20 million. Recurring annual losses of even $20 million/year are clearly a serious drain on the provincial economy and, unless remedial action is taken, losses will continue to increase.
16. This magnitude of losses is likely to accelerate in future years if appropriate action is not taken soon. The present motorized vehicle traffic is growing at rates as high as 30 percent per annum on some roads in the Province. The present traffic levels are - 126 - ANNEX 2 already causing serious congestion in towns and road safety problems on parts of the existing road network; further increases in traffic will certainly worsen the situation and increase the numbers of accidents and casualties. This is corroborated by the annual accident rates which are currently increasing by 3 to 5 percent per annum. This rate represents a doubling of accident numbers in about 14 years, which would impose large public costs in terms of policing, medical facilities and other related remedial services.
17. Many different factors contribute to Jiaxing's high rate of accidents: the most effective way to make significantimprovements is to develop a comprehensiveroad safety improvementplan for the Province involving improvementsto those areas which most affect road safety. Such a plan should includevehicle roadworthinesstesting, driver training/testing,publicity/education, emergency medical services, traffic law enforcement, legislation, road safety research, accident blackspot improvements, and traffic/highway design standards. As a first step towards that provincial plan, under the project efforts would be concentrated in those areas most closely related to highway construction and which are likely to lead to large initial benefits in terms of accident reduction. This takes the form of safety-consciousdesigns for jurisdictions and the links between them.
18. While the ZhejiangProvincial Communications Department (ZPCD) cannot resolve the road safety problem independently,it can undertake actions within the areas under its direct control. At the same time, improvingliaison and cooperationbetween key agencies such as the Zhejiang Provincial Highway AdministrationBureau (ZPHAB) and Zhejiang Public Security Bureau at the provincial levels, and including the Jiaxing Highway AdministrationBureau (JHAB)and Jiaxing Traffic Police at local levels are also essential,primarily in order to identify specificlocations, for example,on the Jiaxing road network where accidents repeatedly occur (i.e., accident blackspots). ZPCD can then design appropriate engineeringimprovements which can be implementedin future years, to reduce accident occurrence at such locations.
D. CURRENTROAD SAFETYAcrvmEs
19. A program of action aimed at accident reductionto be successful, needs to address three main areas. These are:
(a) Education; (b) Enforcement;and (c) Engineering.
A successfuloutcome for the program dependson a certain minimumlevel of action taking place on each of these agendas. The three are loosely interlinkedand whilst action in any one area will produce results, efforts directed at the appropriatesections in all three areas will yield additionalbenefits.
20. Maximumreduction in accidentscan only be achievedwith a comprehensive road safetyeffort encompassingall aspects of these three areas, ranging from interventions such as school lessons to changes in Governmentpolicy. Clearly such a plan is beyond the scope of this pilot project. However, it is important to ensure that the project - 127 - ANNEX 2 proposals mesh with existing work so that the program maximizesthe benefits which can be gained by combining this program with ongoing efforts in the field of road safety.
21. Education. China has a comprehensive road safety education system involving schools, drivers and the general public. Currently lessons on road safety form part of the school curriculum, drivers attend compulsory training classes and there is widespreadpublicity on road safetyissues. All manner of media are used in this campaign including television, newspapers, theater, radio, wall slogans and public notice boards. A hard-hittingcampaign using "shock" tactics is employed in all towns and cities where notice boards contain photographsof actual accidentsand the victims, explainingwho was at fault and what the consequenceswere. This is supported by a generalized road safety slogan.
22. Enforcement. While general observation of driver behavior is one good way of identifying enforcement requirements, another is through the analysis of road accidents. Currently accident data are stored in a computer system based on a classic database-typeprogram. This enables a limited amount of analysis work to be undertaken, but only by interrogating the data base on specific locations or lengths of road. The greatest drawback to this type of systemis that the problem locations cannot be identified from the data alone; a third party input is required to direct the initial search. Using this system it is not easy to identify a problem requiring police enforcementwithout knowing of its existence and searching for the appropriatedata.
23. Engineering. Similarly, unless an engineer is aware of, for example, a turning problem at a particular type of junction, the existing data system will not identify it unless the relevant data are searched. This is a weakness in the system and means that scarce resourcesare not currently being directed to the problems most in need of attention and resolution.
24. All these point to a present weaknessin the chain of events which must take place in order to improve road safety. The proposed pilot road safety program described below has been designed to reduce or eliminate present weaknesses in order to leave a lasting improvementto the systemsestablished to tackle road safety in the corridor.
E. OPPORTUNITIESFOR IMPROVINGROAD SAFETY
25. As outlined above a number of critical weaknesseswere identified in road safety activities during the various missions. The main ones are:
* Accident analysis and identificationof causes * Implementationof accident remedial measures * Change in attitude towards design philosophy
26. In designingthe pilot program, particular attentionhas been given to actions which can be taken to improve road safetyby supportingthe work which is currently being undertaken. These actions can be grouped into those which are related to accident - 128 - ANNEX 2 prevention and those which are related to accidentreduction. The sorts of activities which need to be introduced under each of these areas is indicated below.
27. AccidentPrevention. While it is acceptedthat a certain level of road safety is already implicit in existing design standards and practices, even greater emphasis is needed on incorporating additional features/facilities which will enhance road safety especially for the most vulnerable groups such as pedestrians and cyclists. This is particularly important as increasing traffic levels will almost certainly bring increasing accidents unless preventive action is taken.
28. A vital element of any road safety program is therefore the provision of technicalassistance to make available the accumulationof experiencegained in the more motorized societies to those at the early stages of motorization.
29. A more "safety conscious" approach to planning/designingroad networks is required so that newly built roads do not become unsafe in future years when traffic levels increase. Standard layouts of signing, marking, etc. at commonly encountered hazards needs to be developedso that drivers alwaysencounter a consistenttreatment when they approach such features. This will aid driver recognition of potential hazards and increase awareness, hopefully reducing errors.
30. A road safety "audit" or checking, system could also be developed. This would ensure that safety has been given adequate attention in the highway planning and design process. Such safety audit systems are increasinglybeing introduced, even in the industrializedcountries, as they have been found to be a very effectiveway to avoid future road safety problems. The UK, for example, requires all proposed road schemes to be subjectedto a road safety audit at three stages:
Stage 1 Completionof preliminary design (during feasibilitystage) Stage 2 Completionof detaileddesign Stage 3 Completionof construction(prior to opening)
31. While both the Provincial Communications Department and Highway AdministrationBureau have a major interest in road safety issues, enforcement is largely a responsibility of the Traffic Police (a unit within the Public Security Bureau). As a result, neither the Traffic Police nor the highway agenciesare able to identify locations on the network which would benefit from specificenforcement activity except by the fact that accidents are occurring at such locations. This is basically due to the type of accident recording system which is used. Althoughcomputer-based, it lacks the ability to provide easy identificationof accident clusters, either geographicallyor by type. The provision of equipment which can do this will contribute to the objective of reducing accidents.
32. Accident Reduction. Accident reduction is concerned with making the existing highway network operate as safely as possible. It requires that those responsible for introducingimprovements make themselvesaware of the locations of, and nature of the accidents at, the worst accident blackspots on the network. Appropriate engineering improvementscan then be made to reduce the number of accidents. This requires either: - 129 - ANNEX 2 regular and systematic collection of information on the most dangerous locations from Traffic Police offices in each region; or, the introduction of a computerized accident analysis system (such as MAAP, proposed under "Technical Assistance, Training, and Equipment" below) so that accident data can be easily interrogated to produce detailed analyses of data at accident blackspots for each region.
33. Speed is often a major contributory factor in accidents, yet there are at present no portable speed measuringdevices available from the engineeringstaff to assess current actual speeds at accident locations.
34. Despite the problemsof lack of equipmentand lack of awareness of modem analysis techniques, some work aimed at accidentreduction does take place in Jiaxing and some accidentremedial measure work is undertaken. Observationand discussionssuggest that the identificationof blackspots seems to be on a very limited scale, haphazard, and relies on local knowledge of the Traffic Police or on local pressure to ask for an investigationto be undertaken. The types of measures resulting from this approach are very limited. Examples are the provision of traffic signs and limited road marking schemes. There appears to be no system for providingfunding for changes in the highway layout even where this may be a primary cause of accidents at that location.
35. Adoption of modem techniques and methods outlined above will, in the longer term, enable the development of suitable engineering measures which should improve road safety province wide. However, as a first step in the reduction of accidents, under the proposed RSP, a program of accident reduction measures has been developed with the objective of reducing accidents on NR 320, a road that is the source of over 60 percent of the accidentsin the Jiaxing area. The RSP was designedas a pilot scheme, containing elements which will be applicable to the majority of roads in the Shanghai- Hangzhou corridor, and potentiallyto other corridors in China.
F. PILOT ROAD SAFETYPROGRAM
36. The format for a typical comprehensive road safety component of an assistance package would normally concentrate on institutional strengthening across a number of sectors, rather than only identifyinga major program of site-specificmeasures. The consequence of such more comprehensive programs is that it often takes a considerabletime before effectivephysical measurescan be implementedand the benefits of the component can be demonstrated. This also assumes that the recipient country can make sufficient funds available for the continuing work of the road safety teams set up under the project.
37. The road safety component of this project has, however, been given a different emphasis. While it includes institutional strengthening in selected areas of weakness, the program would ensure that some road safety benefits be provided in the short-termwith a demonstrationeffect that could encourageother local highway authorities to emulate the work, expanding the overall benefits of the program. This approach required the early identificationof appropriatephysical works which could be implemented in parallel with the constructionof the expressway. The high incidence of accidents on - 130 - ANNEX2
NR 320 warrants the introductionof remedial measures along this route, in particular in greater Jiaxing.
38. As identifiedearlier there are three major areas of weaknessin the current chain of action required to improve road safety. These are:
(a) Accident analysis and identification of causes;
(b) Implementation of accident remedial measures; and
(c) Change in attitude towards design philosophy.
Accordingly, the RSP has been designedto strengtheneach of these three areas. Actions required are fairly basic at this stage as the concept of improvingroad safety by proactive rather than reactive means appears still to be a novel approachin China. Subcomponents aimed at improving these three main areas of weakness were agreed for the RSP component of the project: Civil Works, Equipment/SoftwareProvision, and Technical Assistance/Training.
G. Cvi WoRKs SuBcoMoNENT
39. Along the roads in the Shanghai-Hangzhoucorridor, safety problems of a similar type occur repeatedlyon all classes of roads and throughoutthe highway network. There are also specific problems relating to particular classes of roads. Some of these problems can be resolved through engineering improvements; the main thrust of these improvements needs to be directed towards segregating motor vehicle and non-motor vehicle traffic. As a consequence, a program of civil works has been devised, aimed specificallyat improvingdesign philosophy and providingpractice in implementingsome typical features based on safer designs. This component divides naturally into three sections, for the purposes of description, NR 320 main carriageway, junctions with NR 320 and structures required to facilitatethe first two sections.
40. Main Road. For the NR 320, the component consists of widening the carriagewayand segregatingdifferent traffic types. The carriagewayis to be widened by the addition of two separate 3.5 m wide "slow vehicle" lanes, one on either side of the existing road. Segregationis achieved by separating the new lanes from the existing by both a horizontal shift of 1.5 m and a vertical shift of 0.5 m.
41. In addition to the extra two "slow vehicle" lanes, the main carriageway would also be widened. Currently it consists of two 3.75 m motorized traffic lanes, one on either side of the centerline, and two outer 2.0 m wide "other vehicle" lanes adjacent to them. Whenever a vehicle breaks down, or stops to load or unload goods, it parks in this 2.0-m lane. Since most trucks are about 2.5 m wide and drivers allow 0.5 m clearance to the edge of paved carriageway, the parked or broken down vehicle often projects at least 1 m into the motorizedvehicle lane, reducing its width to 2.75 m. Many trucks in China have steeringsystems which makeplacing them to within0.25 m difficult, particularly at high speed. The result is that to pass the stationary vehicle they often - 131 - ANNEX 2 infringe into the opposing lane, particularly if the load is wider than the vehicle body, with potentialfor direct, head-onconflict withvehicles approachingfrom the oppositedirection. Since trucks form around 60 percent of the vehicle fleet this is a very common situation and significantlyincreases the risk of head-on collisionsat such locations.
42. Another common scenario which increases risk is when a vehicle swerves into the "slow" lane to avoid an oncomingvehicle which has crossed the centerlineduring an overtaking maneuver.
43. Mixed traffic of widely differing average speeds on the same carriageway leads to the faster vehicles constantly having to reduce speed when obstructed by the slower ones and then having to complete overtaking maneuvers. This simultaneously reduces their average speed and increases the changes of a "nose to tail" accident. A by- product of this scenario is reduced capacity. The provision of separate "slow vehicle" lanes will reduce this type of problem and therefore reduce accidentsof the type described whilst at the same time increasingcapacity.
44. Since many users of NR 320 do not have a license to drive a motor vehicle, except perhaps agricultural tractors, they have limited experience/knowledgeof the mechanical and dynamic characteristics of cars and trucks, and cannot appreciate the stopping distancesrequired by these vehicles. Indeed the fact that rapid growth of traffic has only occurred in recent years has meant the many pedestrians, until recent times, have had little experience of interacting with vehicles. It is therefore necessary to enforce the segregation described above, which can be achieved in two ways.
45. Firstly, use of the maincarriageway by slow movingtraffic such as tractors, cycles and pedestrians needs to be prohibited. Since the Traffic Police have limited resources for enforcement, it is unlikely that this action alone would be effective. A secondway of restricting use of the main carriagewayis by encouraging/designingfor self- enforcement. It is physicallydifficult to lift a typical Chinese cycle 0.5 m off the ground to gain access to the main carriageway;similarly, it is virtually impossibleto drive or lift a tractor up a vertical face of this dimension. While there is a chance that this segregation could cause a vehicle leaving the main carriageway to overturn the chances are reduced by the 1.5 m horizontalsegregation which must be crossed before reaching the 0.5 m drop. This situation is a significantimprovement on the original arrangementswhich had only 0.75 m horizontal segregation before a vertical drop of about 1.5 m at the embankment edge.
46. Junctions. Junction improvementproposals in the RSP cover 37 major highway junctions and 140 minor road junctions and agricultural tracks. Each major junction involves the intersection of a classified road with NR 320. The 140 minor junctions include some classified and some unclassifiedroads together with a number of junctions with "tractor roads" (i.e., agricultural tracks).
47. The initial section for treatment contains 25 junctions, comprising 5 connectionsto NR 320, 4 accesses to hotels/factoriesor gas stations, 13 junctions with minor roads and 3 junctions with "tractor roads". The major and minor road junctions - 132 - ANNEX 2 have been designed to maintain the "slow vehicle" lane segregation while allowing all turning movements to be made at grade. This has been achieved by the provision of heavily channelizeddesigns.
48. Bridges and Culverts. The program for the 80 bridges and culverts on NR 320 is substantial. It consists of wideningthe bridges/culvertsthemselves to accommodate the new cross-section described above. Rather than extending or adding separate pedestrian/cyclebridges to the sides of an existing structure, as has been done in the past, the bridge itself will be widened. The widening will be such that the new cross-section can be accommodated. This approach applies to the 80 bridges and culverts, of which two bridges will be demolishedand reconstructed. Withinthe initial section for treatmentthere are nine "small" bridges, two "medium"bridges and 44 culverts which will be widened. The two mediumbridges will be demolishedand renewedas they are structurallydeficient.
49. There are nine bridges which are not going to be widenedduring the course of this program, but where a temporary layout which maintains the segregated "slow vehicle" lanes over the bridge deck has been agreed. Althoughnot included under this project, ZPHAB intend to widen these bridges using their own funding, as soon as possible.
50. Proposed Construction Program. The civil works component of the program has been plannedin nine sectionsor subprojects. Review of the scope and design of the first section was initiated during appraisal. The subsequent subprojects will be prepared and submittedfor Bank approvalaccording to the criteria presented in Attachment 1. The nine sections are tentativelydivided into three phases of three sections each. The phasing may be modified during project implementation. The ZPHAB designation and details are shown below. - 133 - ANNEX 2
CIVILWORKcS SECTIONS SUMMARY
ZPHAB Location Contract Cost Major Major Minor Other Long no. (kcm) no. (Y mil) crossroad junction junction Culvert bridge bridge
A-i 143-153 3 21.00 0 4 8 23 6 0 B-i 114-124 6 21.00 2 3 20 44 11 3 c-1 96-104 8 18.00 1 2 11 5 6 1
A-2 164-172 1 16.00 0 4 10 7 9 1 B-2 133-143 4 19.00 2 3 19 32 8 0 C-2 86-96 9 21.00 0 4 33 20 9 2
A-3 153-164 2 21.00 1 6 17 32 13 0 B-3 124-133 5 19.00 1 0 11 16 7 0 C-3 104-114 7 20.00 1 3 17 21 9 2
51. A proposed construction program for the RSP has been prepared by ZPHAB/JHABas follows:
PROPOSEDIMPLEMENTATION SCHEDULE FOR RSP Clvn. WoRKs
Phase/ 1995 1996 1997 Package J FM AM J JASONDJFMAMJJASONDJFMAMJ j A S N D
A-1 ~kt.~... I B-i -. u
C-1
A-3 III B-3...... C-3
52. ZPHAB will manage the contracts for the civil works component of the RSP. JIHABwill assist ZPHAB by providing design services. Training courses will be organized by ZPHAB in conjunction with relevant provincial and central government authorities,and the existingRoad Safetyunit will managethe technicalassistance program.
53. Environmental and Resettlement Impacts. Under the Road Safety Program (RSP), nine subprojects have been identified for implementationin a phased manner over about a three-year period. All subprojectsrequire substantialwidening and acquisitionof new ROW, and could have a potentiallyadverse impact on environmentally sensitive areas such as noise, water pollution and soil erosion during the constructionand operation phases. An EA was carried out for the RSP (for all nine subprojects)and an - 134 - ANNEX 2
EAP has been prepared based on the findings of the EA. An RAP covering the resettlement impact for all nine subprojectshas also been prepared. The EAP and RAP have been found acceptable to the Bank.
54. Procurement/Bidding Procedures. Procurementwill be carried out under NCB, in full accordance with World Bank procedures. ZPHAB/JHABwill prepare nine separate sets of contract documents, one for each of the subprojects. It is expected that a minimum of three contractors would bid for each subproject(for a minimumof 27 bids) although a larger number of bids is considered likely. It is also possible that some bids will be for more than one subproject. There should be no difficultyin gettingthis number of bids since ZPHABestimate that over 400 contractors would be reached by their normal advertisingprocess. There are at least two suitablecontractors in each of the 70 counties in Zhejiang Province alone. In addition, there are numerous railway and waterway contractors who are qualified to bid for this type of work. Further description of procurement methodsis provided in Attachment 1.
H. TEcHNIcAL ASSISTANCE,TRAiNING AND EQuIPMENT SUBCOMPONENTS
55. The technicalassistance, training and equipmentsubcomponents have been designed to address shortcomingsin all three areas identified earlier. A major input is related to changing attitudes towards design philosophy and this is to be implementedas detailed below. Draft Terms of Reference are included in Attachment2 to this annex.
56. The Technical Assistance package will consist of:
(a) The provision of an expert(s)in MicrocomputerAccident Analysis systems for three staff-months to set up the two systems provided under the equipment part of this package. This would include writing a conversion program to allow the existing traffic accident data, held by the Traffic Police, to be used as data files, and conversion of at least the last three years of data for Jiaxing.
(b) The provision of one or more experts (6 staff-months)in the field of road safety who will examine existing documents and design standards and developa Road SafetyManual which will set out the principles of good road safety practice and standard design details specifically oriented towards Chinese conditions.
Typical standarddetails which could be developedunder this section of the RSP include:
* Alternative, channelized,junction layouts to reinforce the "priority" rule; * Speed reducing measures at approachesto and through small communities along inter-urban routes; * Approachesto narrow bridges; * Approachesto low radius curves; * Acceleration/decelerationlanes at intersections; - 135 - ANNEX 2
* Specialfeatures/facilities to create safer conditionsfor pedestrians, cyclists, main/animalcarts e.g., paved shoulders or even separate segregated lanes near villages or where high volumes occur; * Periodic Lay-byes for breakdowns/rest-stopsfor long distance trucks; * Busbays (off-road and tail-to-tailfor safety); * Clear markings/signsindicating priority at every major/minorroad junction; and * Alternative safer arrangements to relocate houses to be moved from the right of way.
(c) The provision of one or more experts (6 staff-months)in the field of road safety who will examineexisting highway design practices and procedures and devise a Road Safety Audit system and guidelines which will explain how to check highway designsto ensure they do not contribute towards the occurrenceof accidents. A series of checklistswill be devised for Chinese designers to use in checkingroad designs. Practical training in application of safety audits will also be included to give local engineers experience in carrying out safety audits.
57. The Training component will comprise:
(a) A local three-week Road Safety Course and practical workshop for 20 engineers. This will include training on accident analysis and the development and design of engineering remedial measures at accident blackspots.
(b) A three-week overseas study tour for eight staff involved in road safety work. Locations visited will include examplesof best international road safety practice and the tour will include lecture periods or seminars on aspects of road safety.
(c) Preparation. The training componentwill require one or more experts to prepare training materials to present the training courses in China and to arrange the internationalstudy tour.
58. The Equipment/Software provision under the RSP consists of:
(a) Computers/MAAP. The provision of two IBM compatible 486/33 Mhz computer systems and MAAP software in both English and possibly in Chinese. A laser printer is included with each system for output. One system is to be established at the Traffic Police (in exchange for the continuing provision of accident data) and the second system will be establishedat the ZPHAB offices for accident blackspot analysis.
(b) Traffic Counters. The provisionof one automatic classifiedcounting and weighing data collection system for installation at a permanent counting station on NR 320, complete with hardware and software to provide data - 136 - ANNEX 2
output. Four sets of temporary count/classifiersystems with data capture modules, analyzing software and accessories.
59. Procurementfor the componentsof technical assistanceand training will be made under the "Guidelinesfor the Use of Consultantsby World Bank Borrowers and by the World Bank as Executing Agency." It is anticipated that the contracts for the assistance with the Design Manual and the Safety Audit Guidelineswill run consecutively from the beginning of the civil works while assistance in setting up the accident data analysis system and converting the existing data will begin at the same time and run in parallel to the Road Safety Manual contract.
I. ECONOMIC ANALYSISOF RSP
60. The economic benefits accruing from the usual (generally low cost) institutionally-basedroad safetyprograms are normally easier to justify on accidentsavings alone. However, costs for the physical works associatedwith this RSP are substantially higher than usual due to the need to "rebuild" the existingroad to new standardsderived from an analysis of the accident problems. This is necessary to enable the benefits of accident analysis work and for remedial measures to be fully demonstrated.
61. The true cost of road accidents in China is very difficult to assess since many "hidden" costs, such as hospitalconstruction and medicalstaff training, are not taken into account. The present practicein valuingaccident costs is to sum the costs for physical repairs to vehicles and property and add in the standard compensation paid by the authorities, as appropriate. The resulting figure could reflect, however, a significant underestimationof the real economic costs. Because of this, the accident costs used to calculatebenefits of this project have been based on the most recent comparableestimates of the economic cost of accidents made in 1987 as part of the China Road Safety Project (Sichuan Pilot Study) and updated, taking into account inflation and per capita income growth in the Zhejiang Province. The values used, updated for 1993, are as follows:
Fatality Y 65,600 Serious injury Y 18,160 Slight injury Y 3,400 Property damage only Y 1,700
It was assumed that the unit cost of accidents would continue to grow in line with the economy; a conservative5 percent per year growth was assumed for the analysis.
62. Assessment of the proportion of accidents likely to be saved by the introductionof these measuresis also difficult to assess. No research has been undertaken into the potential accident savings from specific remedial measures in China and so an estimate has been based on a combinationof factors. Similar measures to some of those introduced in this scheme typically produce accident savings of 40 percent in western countries. However, a major feature of the scheme is the segregation of traffic which eliminatesthe possibilityof certain accidentsfrom happening. An overallpotential savings - 137 - ANNEX 2 factor of 60 percent has been used. The total net present value of accident savingsduring the project period is likely to be in the order of Y 330 million.
63. A major benefit of the measures introduced to improve road safety is an increase in capacity. This in itself contributessubstantial economic benefitswhich can be added to the safetybenefits of the infrastructureprogram. Thus the overall benefits of this infrastructureprogram are the sum of the vehicle operatingcost savings, time savings and the safety benefits, and these amply justify this project componentas illustrated below:
Benefit Net present value (Y million)
Vehicle operating costs savings 815
Time savings 131
Accident savings 329
Total Savings 1L275
Total Cost of Program (presentvalue) 124
ERR 54.4%
64. A more comprehensiveeconomic evaluation for the Road Safety Program, includingthe impact of the program on the Shanghai-HangzhouExpressway, is provided in Chapter 4. - 138 - ANNEX 2 Attachment 1
PROCEDURES FOR PREPARING ROAD SAFETY PROGRAM SUBPROJECTS
1. All of the subprojectsunder the RSP would be subject to prior review and clearance by the Bank. The RSP comprises investments under nine already-defined subprojects. Any changes to the pre-identifiedlist of subprojectswill require amendment to the Loan Agreement and additional preparatory work to meet Bank lending requirements. The criteria for obtaining the Bank's concurrence to finance subprojects (many of which have already been satisfied)in the RSP are as follows:
(a) an investmentand road safety improvementstudy should be completed and found acceptable to the Bank;
(b) engineering design should be prepared in accordance with the design standards approved by the Bank during appraisal and sound engineering practice;
(c) proposed procurementprocedures should follow Bank guidelines;
(d) the summary informationon environmentaland resettlement impacts and actions taken for each subproject (i.e., to mitigate negative environmental impacts or to be taken to restore incomes of the population affected by resettlement) must be found acceptableto the Bank; and
(e) an economicevaluation must be completedfor the proposed sections.
A. SUBPROJECTINFORMATION FOR BANK REVIEW AND FORPROGRESS REPORTING
2. The followinginformation should be prepared and made available in order to obtain the Bank's no objectionfor each subprojectpackage and measurethe longer-term impact of each subprojectunder the Road Safety Program.
3. Investment and Road Safety Improvement Study. An economic evaluation for the RSP has been prepared, and supports the viability of the program as a whole. However, the sequencingof works, road safety conditionsprior to investment (accident characteristics, analysis of blackspots, rate and severity of accidents involving non-motorizedvehicles and pedestrians),expected impact on accident rates, recent traffic counts and enforcement,and other criteria to be agreed with the Bank should be provided as part of subprojectinformation for the Bank's review. - 139 - ANNEX 2 Attachment 1
4. Engineering Design and Layout. The engineeringpavement design should be prepared accordingto national standardsas deterrr, ied by MOC. A detailed description of the design and technical aspects of the works and of construction supervision arrangementsshould be sent to the Bank. The detaileddesign documentationand technical specificationsneed not be forwarded to the Bank, but should be made available to Bank missions on request in the field. The layout of all junctions should be in accordancewith current best internationalpractice and the road safety consciousdesign principles embodied in the book Towards Safer Roads in Developing Countries. Layout plans for all junction types should be forwarded to the Bank.
5. Procurement. Bank procurement procedures would be followed for all categories of the Road Safety Program. Civil works contracts would be awarded under National Competitive Bidding (NCB) procedures using Model Bidding Documents approved by the GOC and the Bank. Each contract would be subject to prior review by the Bank. Consultantservices for constructionsupervision and training would be procured accordingto "Guidelinesfor the Use of Consultantsby World Bank Borrowers and by the World Bank as Executing Agency" and under terms of reference acceptable to the Bank. Equipmentwould be procuredin accordancewith "Guidelinesfor Procurementunder IBRD Loans and IDA Credits" dated January 1995 and as described in para 3.70.
6. Environment. An environmentalimpact assessment was carried out for the RSP and an EAP was developed, and has been found satisfactoryto the Bank. If a subproject will be substantiallychanged, an additionalenvironmental analysis should be undertaken for the new/revised subproject. The environmentalprotection measures for each subproject should monitored during implementationfor progress reporting and possiblerecommendations to improveenvironmental mitigation in futurephases of the pilot program
7. Land Acquisition and Resettlement . A ResettlementAction Plan (RAP) covering the entire Road Safety Program has been prepared by the Zhejiang Provincial Highway AdministrationBureau and submitted to the Bank. This RAP has been found acceptable but would undergo minor revisions prior to negotiationsbased on the technical commentsmade by Bankresettlement experts. This RAP followsthe general principlesand policies adopted for the Zhejiang section of the Shanghai-HangzhouExpressway. Implementationof the RAP began in late 1994 and is complete. BeginningJune 15, 1995, internal and external monitoring reports for the RSP resettlement activities would be submittedto the Bank.
8. Zhejiang Provincial Highway Administration Bureau should, during the resettlement monitoring process, collect (or segregate existing) data on resettlement for each RSP subproject. This informationshould be available for progress reporting and for later review of the impact of each subproject. - 140 - ANNEX2 Attachment2
ROAD SAFETY PROGRAM
TERMS OF REFERENCE FOR TECHNICAL ASSISTANCE AND TRAINING
A. INRODUCTION
1. These terms of reference detail the requirementsfor consultancyservices to support the Road Safety Program (RSP) associatedwith the proposed Shanghai-Zhejiang Highway Project.
2. Road safety is of serious concern for Zhejiang Province, as elsewhere in China. The Zhejiang Provincial Communications Department has responsibility for highway design and construction,but most of the provincial responsibilityfor road safety lies with Zhejiang's Public Security Bureau.
3. On this basis, a TechnicalAssistance and Training programhas been devised to increase awareness of safety conscious design within the section of the Provincial CommunicationsDepartment dealing with highway design and provide basic information to enable the limited resources for constructionwork and accident remedial measures to be best targeted. Three of the weakest areas have been identified for assistance:
(a) Basic accident informationand analysis;
(b) Provision of Road Safety Manual and Safety Audit System; and
(c) Staff training.
The work has been divided into three areas of activity designed to address specific, identified areas of weakness,as described below.
B. ACCIDENT DATA AND ANALYSIS
4. The Public Security Bureau currently collate all reported accidents on a computer system based on a standard data base. This type of system does not easily -141- ANNEX2 identify developingproblems but requires a specificinquiry by a police officer who must then interrogate the system, guessing at relevant selection criteria.
5. The objective of the proposed supportis to install two TRL Microcomputer Accident Analysis Package (MAAP) systems. Such systems easily identify developing accident blackspots and are very flexible, identifying common factors in accidents at specific locations or over wider areas. Since the Public Security Bureau have responsibilityfor road safety it has been agreed that one system will be installedwithin the Traffic Police Headquarters. Training for the Traffic Police to operate all aspects of the accident record and analysis system, including the production of annual reports, is included. The Police will make available copies of the accident data on floppy disc to ZPCD. The second system is to be installedin the ZPCD offices in Jiaxing for use by their engineers in resolving accident blackspots identified by the Traffic Police. The specific services include:
* specificationof accident location system in consultation with the Traffic Police and ZPCD Road Safety Unit and oversight of preparation of coded network data by the local municipalauthorities;
* adaptationof the various MAAP computerprograms to analyze data from the Police accident data collectionform;
* conversionof existing historic accident data from 1987 onwards to provide a base from which to identify current accident blackspots.
* installationof Chineseversion of the MAAP systemonto the computersand certificationof correct operation;
* training of Police trainers and Traffic Police officers in correct completion of Police accident data collectionform and developingprograms with such staff for field training throughoutJiaxing prefecture;
* training for ZPCD staff on data checking, coding, data entry, editing, storage, updating and quality/accuracycontrol procedures;
* training ZPCD staff in data analysis and manipulation;and
* review and adjust the system on the basis of early experience, including additional training as may be required.
6. It is expected that the above will require three staff-monthsof a consultant experiencedin the TRL's MAAP computerizedaccident data storage and analysis system.
C. RoAD SAFETYMANUAL AND SAFETY AuDrr PRoCEDuRS
7. Two documentsare required for circulationto all staff concerned with road safety and highway design. The first is a "Road Safety Manual" which, following - 142 - ANNEX 2 examinationof existing documents and design standards, will set out safety conscious design procedures and standard details.
8. The second is a Road Safety Audit Schedule which will comprise a series of "check lists" which are to be applied to all highway designs to ensure unsafe features are not built into new designs.
9. The Road Safety Manual will cover standard details, such as:
* Alternative, channelized,junction layouts to reinforce the "priority" rule;
* Speed reducing measures at approaches to and through small communities along inter-urban routes;
* Approachesto narrow bridges;
* Approachesto low radius curves;
* Acceleration/decelerationlanes at intersections;
* Specialfeatures/facilities to create safer conditionsfor pedestrians, cyclists, man/animalcarts, e.g., paved shoulders or even separate segregated lanes near villages or where high volumesoccur.
* Periodic lay-bys for breakdowns/rest-stopsfor long distance trucks;
* Busbays(off-road and tail-to-tailfor safety);
* Clear markings/signsindicating priority at every major/minorroad junction;
* Alternative safer arrangementsto relocate houses to be moved from the right of way; and
* Any other items deemed necessary followingthe review of documentation.
This may be achievedthrough the services of a single consultantor through the coordination of two consultants. The implementation schedule will comprise six staff-monthsof consultantservices spread over a period of 12 months with gaps in between the assignments. Assignmentswill be in the order of one month each if two consultants are used, or two months for single consultant. During interim periods ZPCD are to prepare any support work and drawings as directed by the consultants.
10. The Safety Audit Schedule will consist of a series of checklists and guidelineswhich explain how to check highway designs to ensure they do not contribute toward the occurrence of accidents. - 143 - ANNEX 2
11. This work is to be provided by a team of at least two consultants. The implementationschedule will comprisefour staff-monthsof consultantservices to be spread over a period of 12 months. Individualconsultant assignments will be in the order of one montheach. During interimperiods, ZPCD are to prepare any support work and drawings as directed by the consultant.
D. TRAINNG
12. The Duties of the consultant will be to prepare:
(a) A local, three-week Road Safety Course and practical workshop for 20 engineers. This will include training on accidental analysis and the development and design of engineering remedial measures at accident blackspots;and
(b) A three-week overseas study tour for eight staff involved in road safety work. Locations visited will include examples of best international road safety practice and the tour will include lecture periods or seminars on aspects of road safety.
13. The training componentwill require one or more experts to prepare training materials to present the training courses in China and to arrange the international study tour. The total consultant time required for the training element is six staff-months.
14. Consultant Qualirications. The consultants should have the following qualificationsfor each of the sections as noted below:
Section A: Accident Data and Analysis
The consultant(s)must have a first degree in a relevant subject and at least 10 years' experience establishing computer-basedaccident data systems. The consultant(s)must be fully familiar with the TRL MAAP system and have a proven record of having adapted and installed it previously in developingcountries and of having trained accident data units in operating all aspects of the system.
Sections B and C: Road Safety Manual and Safety Audit Procedures and Training
One of the consultants will be a senior professional, having extensive experience in road safety and traffic management,to cover broader issues of road safety involving education, health and culture in addition to providingoverall guidance. The Senior Consultantis expectedto be a very experiencedtraffic engineer with extensiveknowledge of road safety issues who has managed-orestablished road safety units in the past, preferably in the developing world. He/she is expected to be familiar with the TRL/MAAPand to have used it for accident analysis and the development - 144 - ANNEX 2 of hazardouslocations improvement programs. He/she must have extensive experience of having developed/implemented hazardous location improvementprograms.
The other consultantis expectedto have a first degree in Civil Engineering or related subject and preferably a postgraduate qualification in Traffic Engineering. He/she is also expectedto have at least five years' experience as a traffic engineer and to have been involved with a road safety and/or traffic managementunit in a developingcountry. - 145 - ANNEX 3
ENVIRONMENTAL ASSESSMENT AND ACTION PLAN SUMMARY
A. BACKGROUND
1. Environmental Assessments(Eas) were carried out for the Shanghai and Zhejiang sections of the Shanghai-HangzhouExpressway ("the Expressway") by the Shanghai Academy of Environmental Sciences (SAES) and the Zhejiang Provincial Research Institute of EnvironmentalProtection (ZPRIEP) respectively. The Shanghai section EA was completedin February 1993 and the Zhejiang section EA was completed in October 1992, supplementedin October 1993. They identified social disruption, noise, air pollution, water pollution, soil erosion, impacts on irrigation systems, etc. as major potential impacts. Based on the findings included in the Eas and subsequent to the discussionbetween the representativesof Shanghai Municipality,Zhejiang Province and the Bank staff, the EnvironmentalAction Plans (EAPs)for Shanghaiand Zhejiang sections were prepared in September 1993 and submittedto the Bank in October 1993. The Eas, EA Summariesand EAPs were discussedand further modified as appropriate during the appraisal mission in November 1993. The finalizedEAPs were submittedto the Bank in February 1994 and found to be satisfactoryto the Bank. It has been ascertainedthat the Expressway would not affect ecologicallysensitive areas and if appropriate measures are taken, its construction and operation should have no significant adverse impact on the environment.
2. The EAPs specified the measures, organizations and monitoring arrangementsrequired to mitigate the potential adverse effects on the environmentduring the construction and operation of the Expressway. The main measures relate to social disruption, noise, air quality includingdust, soil erosion and water management, control of constructiontraffic, operation of quarries, and waste disposal. The engineeringdesign and technicalspecifications for the Expresswayhave incorporatedthe appropriatemeasures required to be taken for environmental protection. Appropriate administrative arrangementshave been identifiedto ensure the enforcementof such measures during the construction and operation of the Expressway. Summaries of the Eas and EAPs are presented in this annex and copies of the EA and EAP reports are available in the Project File.
3. Since most of the works under the Road Safety Program (RSP) would be directed to the upgrading of existing facilities, they are not expected to have significant impacts on the environment. Nevertheless,in order to fully mitigate potentially adverse effects of subprojects, the EA for the RSP was carried out by EnvironmentalProtection Institute of ZhejiangProvince. The EA report was prepared in March 1994 and submitted to the Bank in May 1994. Based on the findings of the EA, an EAP was prepared in - 146 - ANNEX 3
August 1994 and submittedto the Bank in September 1994. They were reviewed by the Bank staff and the commentswere sent to the borrower for their consideration.
4. The process of environmentalreview involved inputs from various units in the region, including environmentalbureaus, research institutions and universities. The affected groups along the highway, and the people subject to resettlement and land acquisitionin particular, have been intensivelyconsulted.
5. The policy and administrativerequirements for environmentalassessment of developmentprojects in Chinawere followedduring preparationand evaluationof the EA, as well as the Bank's OD 4.01 on EnvironmentalAssessment. Major laws and regulations applied to the EA for the project include:
(a) EnvironmentalProtection Law of PRC;
(b) AtmosphericPollution AbatementLaw of PRC;
(c) EnvironmentalNoise Control Law of PRC;
(d) Water Pollution Control Law of PRC;
(e) Land ManagementLaw of PRC;
(f) Safety ManagementClause of Chemical Hazard;
(g) Management Guidelines on Environmental Protection of Construction Project, Number 003 (86), issued by the State Environmental Protection Bureau (SEPB);
(h) Measures for Environmental Protection Management of Transport ConstructionProjects, Number 117 (86), issued by the Ministry of Urban and Rural Constructionand EnvironmentalProtection; and
(i) Measures for Environmental Protection Management of Transport ConstructionProjects, Number 17 (90), issued by MOC.
6. The environmentalstandards applied in the assessmentare listed in Appendix 1 of this Annex.
7. The road coveredby the EA was the constructionof the Shanghai-Hangzhou Expressway, a 131 km four-lanedivided access-controlledhighway, linking Songjiangin Shanghaito Pengbu in Hangzhou. It also includedthe upgradingof local roads to improve access to the Expressway. The 29-km section in Shanghai adjoins the existing 20-km expressway length between Xinzhuangand Songjiang. The 102-km section in Zhejiang would link at Pengbuwith the Hangzhou-NingboExpressway now under construction. The - 147 - ANNEX 3
EA for the Road Safety Program covered the nine subcomponentscomprising upgrading of approximately86 km of National Route 320 in Jiaxing Prefecture.
B. ENVIRONMENTALASSESSMENT OF SHANGHAI-HANGZHOUExPRESSWAY
Baseline Envirommental Description
8. Geographic Condition. The alignmentof the Expresswayis located in the Hangzhou-Jiaxing-Huzhouriver network plain in the north bank of the Qiantangjiang River, which is the southern end of the Changjiang delta, featured by flat terrain, networked rivers and numerous lakes. The Expressway passes the Hangzhou-Jiaxing- Huzhou plan from southwestto northeast with many paddy fields and mulberry hills along the alignment, descendingat this way with a height of about 6-7 m.
9. Hydrological and Meteorological Conditions. The region belongs to sub-tropical monsoon climate zone, having moist temperature, demarcated seasons and abundant rainfall with the average annual temperatureof about 16-17°C, annual average humidity of about 80-82 percent and annual precipitation of about 1,000-1,200 mm. Occasional typhoons strike in autumn and in summer. The surface runoff goes into the river network through channelsand finally into the QiantangiingRiver and HangzhouBay. The water system in the region constitutes a water transport network and formulates various channels capable for vessel transportation.
10. Population and Economy. The region, including Yuhang and Jiashan countiesas well as Haining,Tongxiang, and Jiaxing cities, has a populationof 3.65 million along the alignment. The averagepopulation density is approximately600-900 persons per km2, rising to 4,000-15,000 in the most crowded areas. About half the economicactivity of ZhejiangProvince is concentratedin the 150-kmcorridor linking the cities of Hangzhou and Shaoxing. In 1990, Zhejiang ranked second in the nation in terms of Gross Output Value of Agricultureand Industry (GOVAI). The provinceas a whole enjoyeda per capita GOVAI about 50 percent higher than the national average, and in the Hangzhou-Shaoxing- Ningbo corridor, about 150 percent higher. The six countiesand cities along the alignment have paddy fields of about 200 km2, mixed up with mulberry fields and tea plantations, with annual productionsof about 2.3 million tons of rice and 1.3 million dan of silkworm cocoons, which account for 15 percent and 30 percent of the total production of the Province, respectively.
11. Ecological Environment. Ecological environment of the areas along the alignment is mainly an artificialagricultural system. Major crops are rice, wheat, cotton, oil seed, vegetables and fruits.
12. Air Quality. In the Zhejiang section, CO, NOx, SO2, Total Suspended Particulate (TSP) and Total Hydrocarbons(THC) were measured and analyzed along the alignment of selected residentialareas, existingroad crossings, etc. The results indicated that the present air quality is relativelygood along the alignment. In the Shanghaisection, - 148 - ANNEX 3 six points were selected for ambient air quality monitoring. Co, NOX, TSP and Non-methaneHydrocarbons (NMHC) were measuredin December 1992. The results also indicated that the present air quality is generallygood.
13. Noise. The results of selectedrepresentative spots such as villages, schools, and road crossings showed that average noise levels were 43-51 dB(A) in the daytime and 32-38 dB(A)at nighttimein the Zhejiangsection, and 47-55 dB(A)in the daytime and 42- 47 dB(A) at nighttime in the Shanghai section. The existing acoustic environment is generally good, except the spots near the railway and the existing roads.
14. Water Quality. The analysis of the water quality of major rivers and cultivation ponds for aquatic products revealed that in some areas the water quality standards, in terms of COD and BOD, were exceeded. The pollution was consideredto be mainly caused by discharge from cultivation ponds and the runoff from agricultural fields.
15. Cultural/Historic Locations. Hangzhouand Jiaxing are two main historic cities along the along the alignment. Pog and Rain Pavilion at South Lake are ranked as national key protectedcultural relics. Hangzhouis well-knownas a tourist center, and will further develop its tourist business with the construction of the Shanghai-Hangzhou Expressway.
Potential Environmental Impacts Identified in the EA
16. The following key areas of environmentalimpacts were identified, where adverse change may take place during the constructionand operation of the highway:
(a) Air Pollution. The most significantfactors contributingto air pollution will be dust during the construction phase and vehicular emission during the operation phase. Dust in the construction phase is mainly caused by transport of construction materials, other earth moving activities, use of constructionvehicles, and emissions from asphalt plants. In the operation phase, the major air pollutantis NOx. According to the predictions in the EAs, CO will not exceed the standard at any point in the future. NOx concentrationscorresponding to daily traffic will meet the standard in all road sections until the year 2018. During peak periods of traffic volume, NOx will generally meet the standardexcept during the year 2018. In the morning when the air is stable, NOx levels within 40 m from the roadside will exceed the standardduring the years 2010-2018.
(b) Noise. In the construction phase, noise impacts will be significant. The sound of blastingmountains and noise of constructionmachinery will affect the lives of local residents, especially at night. According to predictions in the EAs, at the beginning of expressway operation in the year 2000, the noise levels will not exceed the daytime standard [70 dB(A)]in any sections - 149 - ANNEX 3
and will not exceed the nighttime standard [55 dB(A)] in most sections. The affected areas expand as the traffic volume increases. In 2015, the noise levels within 70 m from the roadside will exceed the standard in daytime and the affected areas will expand to 150 m from the roadside at nighttime.
(c) Soil Erosion and Water Quality. The main cause of water loss and soil erosion during the constructionis that, in the process of earth work, top soil may be washed out by the rain water, which results in waterway silting up, turbid water, and negativeimpacts on irrigation ditches. However, serious soil erosion will not occur if adequatemeasures are taken during the design and constructionphases. Surfacewater qualitywill becomeworse in a short period during the construction phase, which can be mitigated by strict control measures.
(d) Soil Pollution. Soil pollution by lead from motor vehicles could affect crops along the highway. According to the field measurement, the lead content in mulberry leaves along the roadside is 2-3 times higher than that far away from the roadside. However, the present lead level in soil is within the backgroundrange.
(e) Social Disruption. The sub-gradeelevates an average height of about 3 m, causing social disruption by separating residential areas, farmland etc., unless passageways are designed in an adequate manner. Due to the transport of a large quantity of buildingmaterials, the traffic volume during the constructionphase will certainly increase, which could have an adverse effects on local communitiesalong the highway.
(f) Others. The probability of accidents may increase but will not be significant in the construction phase. The risk of traffic accidents and accidents associatedwith the transport of hazardousmaterials will increase during the operationphase.
Mitigation Measures
17. The EAPs stipulatehow the environmentalimpacts identified in the EAs will be dealt with at design, implementationand operationstages, includingwhat administrative arrangementshave been made for the execution of the EAPs during these three distinct phases. Major mitigation measures for Zhejiang and Shanghai sections are highlighted below and summarizedin Appendix2 and 3 of this Annex, respectively.
18. Selection of Alignment. The proposed alignment (the so-called middle route) was selected from among three alternatives,i.e., east, middle and west routes, with a view to avoidinglarge residentialareas and ecologicallysensitive areas, and minimizing resettlement and other adverse impacts on the local population. The alignment was - 150 - ANNEX 3 selected to be away from villages, schools, hospitals, protected areas of cultural relics, etc., as much as possible, under the principle of "being away but not far from cities and towns."
19. Air Pollution. During the constructionphase, adequate measures will be taken to minimizedust pollution, such as watering, covering of transported construction materials, etc. Advancedtechnology will be adopted for heatingasphalt. Asphalt mixing sites will be carefully selected to avoid adverse effects on residential areas. During the operationphase, public awarenesscampaigns and educationwill be undertaken to promote compliancewith traffic rules and tail gas emission standard. Trees will be planted along the roadside, as appropriate, with a view to reducing adverse impacts.
20. Noise. During the constructionphase, construction work that generates significantnoise in the vicinity of residentialareas will be undertakenduring daytime hours (6:00-22:00). Transportation of constructionmaterials will be carried out with careful considerationto minimizingnoise impacts on residents along the roadside. Maintenance of constructionmachines and trucks will be strengthenedso as to keep them at low noise levels. Traffic management, including disseminationof traffic rules and setting up of speed limits, will be strengthened.
21. Residenceswhich are located within20 m from the side ditch of the highway and are seriously affected by noise will be resettled progressively. The constructionof new buildings, including residences, will be prohibited within 50 m from the side ditch. Sound screens will be installed at 90 places during the initial operation phase, and thereafter, noise barriers will be installedin five areas, and forest belts will be constructed in two areas in the Zhejiang section in a phased manner. Additionalnoise barriers could be installed as the need arises and as determined from the results of the monitoring program. These measures, with total investmentcost of Y 774,000, are summarizedin Table 1.
22. Soil Erosion and Water Quality. Slope protection and drainage facilities will be constructed in order to protect soil erosion. Appropriate measures, either rehabilitation or reconstruction,will be taken where the existing irrigation and drainage systems are damaged. Appropriate waste water treatment facilities such as septic tanks will be installed at constructionsites and camp sites. Sludge in sewage purification pits will be disposed of periodically. During the operation phase, sewage from service areas will be treated appropriatelyand no waste water will be discharged directly into rivers or irrigation canals.
23. Soil Pollution. Lead levels will graduallyincrease in the future as traffic volumeincreases. Since the EA failed to provide predictionof future lead levels along the roadside, it is necessary to regularly monitorthe lead level in the operationphase, in order to safeguard people's health, and to provide a more scientific basis for identifying necessary measures regarding road constructionprojects. -151- ANNEX3
Table 1: NoISE MmGATION MEASURESFOR SENSITIVEPOINTS
Location Measures Length (m)
XuanjiahuPrimary School Noise protection barrier 300
Wanxing Primary School Noise protection barrier 130
Zhaochang Primary School Forest belt 240
Residentialarea Noise protection barrier 80
Yancheng Primary School Forest belt 520
Tudinn Primary School Noise protection barrier 160
Jianong Primary School Noise protection barrier 100
24. Social Disruption. A sufficientnumber of passageways(225 underpasses including 85 pedestrian underpasses,one on average every 50 m) will be constructed to meet the requirementsof local people and vehicles for crossing the highway.
25. Others. The management of transport of hazardous materials will be strengthened. Prior to transportation of hazardous materials, the Public Security Department will examine the arrangementsand plans for their transport.
EnvironmentalMonitoring
26. During constructionand operationof the highway,environmental monitoring will be carried out to verify the actual impacts on the environment, identify unexpected environmentalproblems at an early stage, and adjust environmentalprotection measures as appropriate. In the Zhejiangsection, the ExpresswayEnvironmental Protection Sectors (EEPS)of the ZhejiangProvincial Expressway Project ExecutiveCommission (ZPEC) will be responsible for environmentalmonitoring in the construction phase, and the future ExpresswayAdministration Department (EAD) and the EnvironmentalMonitoring Station for monitoringin the operationphase. In the Shanghaisection, the ShanghaiAcademy of Environmental Sciences (SAES) and the Shanghai Huhang Expressway Construction Executive Commission(HHEC) will be responsiblefor the monitoringin the construction phase and SAES and the Shanghai Huhang Expressway Management Department (SHEMD)for monitoringin the operation phase. ULi~X1C UU
- 152- ANNEX 3
27. The key areas for monitoring are air pollution, water pollution, noise and vibration, and lead contaminationin soil and crops.
28. Air Pollution. Periodic monitoring will be carried out during both the constructionand operationphases. Items to be monitoredwill include TSP, NOx and CO in the constructionphase and NOx, CO, TSP and lead in TSP in the operationphase.
29. Water Pollution. Periodic monitoring will be carried out during the constructionand operationphases. Items to be monitoredwill include SS and oil, etc., in the constructionphase and DO, BOD, COD, SS, oil, heavy metals etc., in the operation phase.
30. Noise and Vibration. Periodic monitoringwill be carried out once every season both in daytime and at night near constructionsites during the constructionphase. Monitoring will be carried out once every season during the operation phases. Ad hoc monitoringwill also be undertakenas appropriate.
31. OtherItems. Lead contentin soil and crops will be carried out once a year during the constructionand operation phases.
C. ENviRoNMENTALASSESSMENT OF ROAD SAFETY PROGRAM
32. Major infrastructure components of the Road Safety Program include widening and segregation of different types of traffic in nine sections totaling approximately86 km, improvementof 37 major highway and 140 minor road junctions, and upgrading of 80 bridges and culverts along the National Road 320. Major mitigation measuresfor the Road SafetyProgram are highlightedbelow and summarizedin Appendix 4 of this Annex.
33. Noise. During the constructionphase, constructionequipment such as piling machinesand loaders will cause significantnoise. Constructionwork, therefore, will be stopped during nighttime (from 20:00 to 6:00) within 150 m from sensitive sites. All constructionmachines will be equipped with proper sound mufflers to reduce noise. In order to reduce impact of noise and exhaust gas emissions during the operation phase, houses within 20 m of the reconstructed road will be resettled. Construction of new residenceswill be prohibitedwithin 200 m from both sides of the road until 1998 when the Expressway becomes accessible. Noise barriers will be installed around the Suburban Primary School of Chongfu, Buyuan Middle Schoolof Tongxiangand South Lake Middle School of Jiaxing. Vehicles will be requested to equip with sound mufflers. Trees will be planted along the road to reduce air and noise pollution.
34. Air Pollution. During the constructionphase, constructionmaterials such as earth, gravel and stones will be piled more than 100 m away from residential areas, villages and schools, and will not be piled in the open air. In dry weather, construction and piling sites will be watered to control dust (at least 4-5 times a day). Asphalt will be - 153 - ANNEX 3 heated and mixed in a closed roaster. Asphalt heating factory will be located at least 100 m away from villages and towns. Asphalt will be mixed in a movable high- temperaturecontainer without heating source. Trees and turf will be planted to reduce impact of exhaust gas emissionsand noise. Vehicles are requested to equip with exhaust gas purifiers.
35. Water Pollution. In the constructionphase, to avoid direct discharge of waste water from constructionsites into rivers, temporary septic tanks will be installed. Garbage and other wastes from constructionsites will be collected and disposed of in an adequate manner. In order to prevent pollution from garages, washingstations etc., such facilities along the road will not be located near water bodies.
36. Soil Erosion. Measures will be taken to prevent irrigation canals from being filled with, or blockedby, constructionmaterials. Excavatedareas will be filled and pressed tightly as promptly as possible. A sufficientnumber of escape channels will be constructed at construction, disposal and material borrow sites. Trees and turf will be planted on road bed slopes, in permanent or temporary filling places, and at disposal sites. Top soil will be saved and returned to the excavated areas as much as possible after constructionworks are completed.
37. Cultural Relics. The main cultural relics along the National Road 320 number four-Wuzhen Tomb in Jiashan, the SouthLake and Misty Rain Tower (Yan Yu Lou) in Jiaxing, Pushu Pavilionin Jiaxing and Loujiagu Remainsin Tongxiang. Each site is located at least 1.5 km from the road and will not be affected by the Road Safety Program.
38. Social Disruption. Detailed construction transportation plans will be prepared to avoid transportationof construction materials at peak traffic hours. River transport will be used where appropriate to avoid traffic congestion on the road. Temporary entrances and exits will be set up at the crossroads to reduce impact on passengers and vehicles. In order to enable passengers and local vehicles to cross the roads smoothly and safely, 140 crossroads and passages will be constructed.
39. EnvironmentalMonitoring. During the constructionand operationphases, environmental monitoring will be carried out to verify the actual impacts on the environment, identify unexpectedenvironmental problems at an early stage, and adjust environmental protection measures as appropriate. Zhejiang Provincial Highway AdministrationBureau will be responsiblefor environmentalmonitoring during both the construction and operation phases, and will entrust the work to the municipal administrativestations. The key areas of monitoringinclude air pollution (CO, NOx, TSP, dust and THC), noise pollution,and water pollution (pH, BODs, DO, COD, SS and oil). - 154 - ANNEX 3
D. ORGANIZATIONALARRANGEMENTS
40. The Zhejiang Provincial Environmental Protection Bureau (ZPEPB) exercises unified supervision and managementof the environmentalprotection activities in the area under its jurisdiction. The Expressway Administration Bureau exercises supervisionand managementfor the prevention and control of environmentalpollution.
41. The responsibility of ZPEPB is to exercise unified supervision and management of environmentalprotection in the areas under its jurisdiction, to make investigationand assessmentof environmentalconditions under the cooperationof relevant sectors, and to prepare an environmentalprotection plan. ZPEPB will assist ZPEC to implement the environmental management in and around the construction sites, in collaborationwith local environmentalprotection administrations.
42. The responsibilityof ZPEC is to prepare the project documentsunder the World Bank loan, to implement the project and to exercise the effective managementof environmentalprotection in the constructionand operation phases. The corresponding environmentalprotection Division will be set up under the Expressway Administration Bureau (EAB) and 3-5 professionals will be staffed. EAB will also set up the Jiaxing Administration Division, and an environmental monitoring station. The Jiaxing AdministrationDivision will set up an environmentalprotection section (2-3 staff), and an environmentalmonitoring station (10-15 staff) in Wangdian, which is responsiblefor the environmentalmonitoring in the constructionphase.
43. The ShanghaiHuhang Expressway Construction Corporation (SHECC)and the ShanghaiHighway AdministrationDepartment (SHAD) administer the environmental management and monitoring of the project in the construction and operation phases respectively.
44. In the constructionphase, SHECC shouldhave an environmentalsupervision group. The group is responsible to supervise implementation of the environmental managementplans, in conjunctionwith engineeringsupervision and management,to carry out environmentalinvestigations and address environmentalproblems.
45. The ShanghaiHighway Administration Department has a maintenancesector, whose responsibilitiesinclude:
(a) to undertake investigations and address environmental problems in the operation phase;
(b) to carry out environmentalmonitoring, collect and analyze environmental and emissioninventory information; and
(c) to reinforce management and inspection of special facilities for environmentalprotection. - 155 - ANNEX 3
46. The ShanghaiEnvironmental Protection Bureau (SEPB) is the administration for integrated supervisionon the environmentalprotection. The functionof SEPB includes environmentalsupervision, management and coordination. There are several research units under the SEPB, among which the ShanghaiAcademy of EnvironmentalSciences and the ShanghaiMunicipal EnvironmentalMonitoring Center are the main technical supporters.
47. Regarding the Road Safety Program, the road reconstructionprogram will be carried out by Highway AdministrationBureau of Zhejiang Province, in cooperation with the local environmentalprotection bureaus, which will be in charge of all the work for environmentalprevention and control. Environmentaladministration and monitoring of different road sections will be carried out by Jiaxing EnvironmentalBureau, together with the four subordinate environmental monitoring stations, and supervised by EnvironmentalProtection Bureau of Zhejiang Province. - 156 - ANNEX 3 Attachment 1
ENVIRONMENTAL STANDARDS
MAJOR ENVRONmENTAL STANDARDSAPPLIED iN ENviRomENTAL ASSESSMENT
Standard Number
Ambient air quality standard GB3095-82 Ambient noise standard for urban areas GB3096-82 Maximumpermissible concentrationof atmospheric pollutants for the protection of agricultural crops GB9137-88 Environmentalquality standardsof surface water GB3838-88 Farmland irrigation water quality standards GB5084-85 Environmentalvibration standards in city regions GB10070-88 Noise criteria for constructionsites GB12523-91
AMBIENTNOISE STANDARDFOR URBAN AREAS
Area Day Night dB(A) dB(A)
Special residentialquarters 45 35 Residential,cultural, and educationalareas 50 40 Class I mixed area 55 45 Class II mixed area 50 50 Industrial zone 65 55 Sides of traffic artery 70 55 - 157 - ANNEX 3 Attachment 1
AMBIENTAIR QuAurry STANDARD (GB3095-82)
Items Concentrationlimits (mg/m3) Class I Class II Class III standards standards standards
Suspended Daily average 0.15 0.30 0.50 Particulate Spot sample La 0.30 1.00 1.50 Matter (SPM)
Dust Daily average 0.05 0.15 0.25 Spot sample 0.15 6.50 0.70
S0o Annual average Lk 0.02 0.06 0.10 Daily average 0.05 0.15 0.25 Spot sample 0.15 0.50 0.70
NOx Daily average 0.05 0.10 0.15 Spot sample 0.10 0.15 0.30
CO Daily average 4.00 4.00 6.00 Spot sample 10.00 10.00 20.00
Ozone Average over 0.12 0.16 0.20 one hour
Lead Maximum 0.0015 0.0015 0.0015
Note: (1) Class I standards are to ensure that the ecology and people's health are not damaged over a long period of time due to air quality.
(2) Class H standardsare to protect people's health and the growth of plants and animals both in cities and in the countrysidefrom any damage over a short or long period of time due to air quality.
(3) Class III standardsare to ensure the normal growth of plants and animals and protect them from chronic and acute poisoning.
La Spot sample means concentrationat any time. It Annual average means the annual average of daily average concentrations. KEY ELEMENTS OF THE EAP FOR SHANGHAI-ZHIEJIANGHIGHWAY PROJECT (Shanghai Section)
Env. Issues Action taken/to be taken Responsibility Remarks
A. Design Ph 1. Route selec- (1) The alignmentwas selected from three alternativesconsidering to ShanghaiHighway See design documents. tion minimizeland acquisition,impacts of air pollutionand noise on envi- Administration ronmentallysensitive areas such as residentialareas, historic sites and Department utilizationof water and farmland. (SHAD)Shanghai MunicipalEngi- neering Design Institute(SMEDI) 2. Social dis- (1) 56 underpassesincluding 6 pedestrianunderpasses (average every 500 SMEDI, SHAD See design documents. ruption m) were designed for pedestriansand local vehiclesto cross the high- and Community way safely. and Township Government(CTG) uo 3. Soil erosion (1) Trees and grasses were designedto be planted in the median, side- SMEDI, SHAD See design documents. slopes, and along the roadside,where appropriate. and CTG (2) Temporary and permanentdrainage systems were designedto minimize soil erosion and alterationof hydrologicalregimes. (3) In order to mitigatenegative impact on existing irrigation system, current irrigation systemswere designedto upgraded, where necessary. 4. Noise and (1) All the houses within 20 m from the side ditch shall be resettled SHAD, SMEDI See design documents. air pollution progressivelyin accordancewith village and townshipdevelopment and CTG plans. No new buildingsincluding residences shall be allowedto be constructedwithin 50 m from the side ditch. (2) Trees were designedto be planted at environmentallysensitive areas in order to reduce noise and air pollution. Env. Issues Action taken/to be taken Responsibility Remarks
5. Water pollu- (1) Pavement drainage shall not link breeding ponds, cultivated land or SHAD, SMEDI See design documents. tion drinking water sources. Waste oil and waste water from service areas and CTG were designed to be adequately treated. (2) Subgrade slopes were designed to be turfed and independent side ditch drainage system to be established in order to minimize pollution of water bodies, breeding ponds, etc.
6. Flooding and (1) Bridges, culverts and other structures were designed to meet require- navigation ments of water conservation authority on navigation and safe discharge of flood.
B. Construction Phase
1. Dust and air (1) Piled fine grain materials and fly ash shall be watered in a timely Contractor, See contract documents. pollution fashion (at least 4 times a day) to avoid flying dust. Shanghai Huhang (2) Fine grain materials, construction materials and fly ash shall not be Expressway Con- See contract clause 102.17 0 piled in the open air and the storage yards of such materials shall be struction Corpora- in Chapter 100, Vol. 2. located at least 100 m from residential areas on the lee side of the wind tion (SHECC) and direction. Shanghai Academy (3) Trucks to transport construction materials shall be covered to minimize of Environmental spills. Sciences (SAES) (4) Asphalt mixing sites shall be located with adequate distance from residential areas on the lee side of the wind direction. (5) Asphalt mixers shall be equipped with a dust collector. Mixed materi- als shall be transported to construction sites by mobile high temperature tanks without heating sources. Env. Issues Action taken/to be taken Responsibility Remarks
2. Noise (1) Construction activities with significant noise shall be undertaken during Contractor, See contract documents. the daytime (6:00-22:00), and prohibited during nighttime in noise SHECC and SAES sensitive areas. See contract clause 102.17 (2) Maintenance of machines and trucks shall be strengthened so as to keep in Chapter 100, Vol. 2. noise levels low. Unnecessary blasting shall be controlled.
3. Soil erosion (1) Filling materials shall be excavated, transported and paved as simulta- Contractor and See contract documents. and water neously as possible, especially during rainy seasons. SHECC pollution (2) Temporary drainage system shall be established and well maintained at See contract clause 102.17 construction sites, quarries and borrow sites during the construction in Chapter 100, Vol. 2. period. (3) All necessary steps shall be taken to prevent earth and stone from silting up river, water channel, or the existing irrigation and drainage systems. Temporary sedimentation basin shall be constructed, if necessary. (4) Waste water from construction activities shall not be allowed to be discharged into water bodies unless adequate treatment methods (septic o tank, etc.) are used. (5) Garbage and waste materials from construction sites and labor camps shall be collected and disposed of adequately.
4. Conservation (1) The use of farmland for borrow sites shall be minimized as much as Contractor and See contract documents. of farmland possible. If excavation has to be done in farmland, top soil shall be SHECC saved and returned after construction works are completed. See contract clause 102.17 in Chapter 100, Vol. 2. Env. Issues Action taken/to be taken Responsibility Remarks
5. Risk of (1) Quarries shall be located far away from residences, schools and hospi- Contractor and See contract documents. accident tals. SHECC (2) Effective protection and watching measures shall be taken against See contract clause 102.17 blasting, including timing of blasting, setting up of clear signals and in Chapter 100, Vol. 2. warning lines, making security inspection, etc. (3) Explosives shall be strictly managed to follow public security regula- tions. (4) Management of environmental protection and safety of quarries shall be strengthened under the supervision of the environmental protection and public security authorities of local governments.
6. Traffic (1) Where appropriate, construction materials shall be transported by water Contractor and See contract documents. problem in order to avoid road traffic congestion. SHECC (2) Location of the piling yards of construction materials from water to See contract clause 102.17 land shall be selected to avoid spill of fine grained materials into in Chapter 100, Vol. 2. rivers. (3) Traffic management shall be strengthened and adequate transportation plans for construction materials shall be developed to minimize safety risks and environmental impacts of extra traffic and construction vehicles on local roadside populations.
7. Historical If historical remains of geological or archaeological interest are found, the Contractor and See contract documents. remains local government shall be informed of such discovery, and excavation shall SHECC be stopped until identification of historical remains by the authorized See contract clause 102.17 institution of preservation is completed. in Chapter 100, Vol. 2. Env. Issues Action taken/to be taken Responsibility Remarks
C. Operation Phase
1. Transporta- (1) Safety spot checks shall be carried out as appropriate on vehicles using Shanghai Huhang tion the highway. Expressway Man- (2) For transportation of harmful and dangerous materials, a 'dangerous agement Depart- material transportation licenses/permission shall be obtained. ment (SHEMD) (3) Highway Administration Bureau shall be equipped with instnmnents and trained staff to effectively control the leakage/spill of dangerous materi- Traffic and Public als. Security Authorities (TPSA) 2. Noise and (1) The minimum speed of vehicles on the highway shall be set at Shanghai Environ- air pollution 50 km/h. mental Protection (2) Vehicles running on the highway shall follow the international driving Bureau (SEPB) practice. Use of horns shall be restricted. (3) Vehicles shall be equipped with silencers and purifiers of exhaust gases SHEMD and TPSA progressively and in accordance with relevant regulations. (4) Vehicles not complying with the noise standard shall not be given nmning licenses. (5) Public awareness and education shall be promoted to familiarize people both with the air pollution and noise problems caused by vehicles and with related regulations. (6) Based on the results of future monitoring, adequate measures, including noise barriers and noise proofing of buildings, shall be taken in the areas where noise exceeds the standard.
3. Others (1) Highway drainage system shall be cleared and dredged regularly. SHEMD and CTG Ditches on slope shall be back-filled and reinforced promptly when they are eroded by rain water. (2) Use of non-leaded gasoline shall be encouraged. It is also encouraged not to plant certain vegetables along the highway.
D. Environmen- tal moni- torn-f
1. Construction Regular monitoring of air pollution (TSP, CO and NO.), water pollution, SAES and SHECC noise and vibration will be carried out.
2. Operation Regular monitoring of air pollution (TSP, CO, NO. and lead in TSP), SAES and SHEMD period water pollution, noise and vibration, and lead in soil and crops will be KEY ELEMENTS OF THE EAP FOR SHANGHAI-ZIIEJIANG HIGHWAY PROJECT (Zhejiang Section)
Env. Issues Action taken/to be taken Responsibility Remarks
A. Design Phase 1. Route selec- (1) The alignmentwas selected from three alternativesconsidering to ZhejiangProvincial See designdocuments. tion minimizeland acquisition,impacts of air pollutionand noise on envi- Communication ronmentallysensitive areas such as residentialareas and historic sites, DesignInstitute and utilizationof water and farmland. (ZPCDI) 2. Social dis- (1) 169 underpassesincluding 79 pedestrianunderpasses (on average, one ZPCDI See designdocuments. ruption every 500 m) were designedfor pedestriansand local vehiclesto cross the highway safely. 3. Soil erosion (1) Trees and grasses were designedto be planted in the median, side ZPCDI See designdocuments. slopes, and along the roadside, where appropriate. (2) Temporaryand permanentdrainage systemswere designedto minimize ZPCDI soil erosion and alterationof hydrologicalregimes. (3) In order to mitigatenegative impacts on the existing irrigation system, ZPCDI the upgradingof current irrigation systemswas designed, where necessary. 4. Noise and (1) All the houses within 20 m from the side ditch shall be resettled ZhejiangProvincial See designdocuments and air pollution progressivelyin accordancewith village and townshipdevelopment Shanghai-Hangzhou ResettlementAction Plan. plans. No new buildings, includingresidences, shall be allowedto be ExpresswayProject constructedwithin 50 m from the side ditch. ExecutiveCommis- sion (2) Forest belts and noise barriers were designedto be installedat environ- ZPCDI mentallysensitive areas. In addition, trees were designedto be planted in order to reduce noise and air pollution.
5. Water pollu- (1) Pavementdrainage shall not link with breedingponds, cultivatedland ZPCDI See design documents. > tion or drinkingwater sources. Waste oil and waste water from service areas were designedto be adequatelytreated. (2) Subgradeslopes were designedto be turfed and independentside ditch ZPCDI drainage system to be establishedin order to minimizepollution of CD water bodies, breeding ponds, etc. Env. Issues Action taken/to be taken Responsibility Remarks
6. Flooding and (1) Bridges, culverts and other structures were designed to meet require- ZPCDI See design documents. Navigation ments of water conservation authorities on navigation and safe dis- charge of flood.
B. Construction Phae
1. Dust and air (1) Piled fine grain materials and fly ash shall be watered in a timely Contractor See contract documents. pollution fashion (at least 4 times a day) to avoid flying dust. Technology Standard See contract clause 802.02.6 and 802.05.1(1). (2) Fine grain materials, construction materials and fly ash shall not be Contractor See contract clause piled in the open air and the storage yards of such materials shall be 802.02.5 and 802.05.1. located at least 100 m from residential areas on the lee side of the wind direction. (3) Trucks to transport construction materials shall be covered to minimize Contractor See contract clause spills. 802.02.6. (4) Asphalt mixing sites shall be located with adequate distance from Contractor See contract clause residential areas on the lee side of the wind direction. 802.02.4. (5) Asphalt mixers shall be equipped with a dust collector. Mixed materi- Contractor See contract clause als shall be transported to construction sites by mobile high temperature 802.02.4. tanks without heating sources.
2. Noise (1) Construction activities with significant noise shall be undertaken during Contractor See contract clause the daytime (6:00 - 22:00) and prohibited during nighttime in noise 802.03.2. sensitive areas. (2) Maintenance of machines and trucks shall be strengthened so as to keep Contractor See contract clause noise levels low. Unnecessary blasting shall be controlled. 802.03.1. Env. Issues Action taken/to be taken Responsibility Remarks
3. Soil erosion (1) Filling materials shall be excavated, transported and paved as simulta- Contractor See contract clause and water neously as possible, especially during rainy seasons. 802.04.1. pollution (2) Temporary drainage system shall be established and well maintained at Contractor See contract clause construction sites, quarries and borrow sites during the construction 802.05.2(1). period. (3) All necessary steps shall be taken to prevent earth and stone from Contractor See contract clause silting up river, water channel, or the existing irrigation and drainage 802.02.2 and systems. Temporary sedimentation basin shall be constructed, if 802.05.03(2). necessary. (4) Waste water from construction activities shall not be allowed to be Contractor See contract clause discharged into water bodies unless adequate treatment methods (septic 103.01. tank, etc.) are used. (5) Garbage and waste materials from construction sites and labor camps Contractor See contract clause shall be collected and disposed of adequately. 802.02.13.
4. Conservation (I) The use of farmland for borrow sites shall be minimized as much as Contractor See contract clause tA of farmland possible. If excavation has to be done in farmland, top soil shall be 802.04.3. saved and returned after construction works are completed.
5. Risk of (1) Quarries shall be located far away from residences, schools and hospi- Contractor See contract clause accident tals. 802.03.1. (2) Effective protection and watching measures shall be taken against Contractor See Special Conditions of blasting, including timing of blasting, setting up of clear signals and Contract. warning lines, making security inspection, etc. (3) Explosives shall be strictly managed to follow public security regula- Contractor See contract clause tions. 801.03.4. (4) Management of environmental protection and safety of quarries shall be Contractor, Local strengthened under the supervision of the environmental protection and Public Security public security authorities of local govemments. Depatment (LPSD) and Envi- ronmental Protec- tion Bureau (EPB) Env. Issues Action taken/to be taken Responsibility Remarks
6. Traffic (1) Where appropriate, construction materials shall be transported by water Contractor See Special Conditions of problem in order to avoid road traffic congestion. Contract. (2) Location of the piling yards of construction materials from water to Contractor See contract clause land shall be selected to avoid the spillage of fine-grained materials into 801.03.1. rivers. (3) Traffic management shall be strengthened and adequate transportation Contractor and plans for construction materials shall be developed to minimize safety local traffic admin- risks and environmental impacts of extra traffic and construction ist-ation sectors vehicles on local roadside populations.
7. Historical If historical remains of geological or archaeological interest are found, the Contractor See contract clause remains local government shall be informed of such discovery, and excavation shall 802.01.1. be stopped until identification of historical remains by the authorized institution of preservation is completed.
C. Ovemtion Phase
1. Transporta- (1) Safety spot checks shall be carried out as appropriate on vehicles using Future Expressway tion the highway. Administration Department (EAD) and Public Security Sectors (2) For transportation of harmful and dangerous materials, a 'dangerous material transportation' licenses/permission shall be obtained. EAD and Supervi- sion Department of Vehicle
(3) Highway Administration Bureau shall be equipped with instruments and EAD trained staff to effectively control the leakage/spill of dangerous materi- als. Env. Issues Action taken/to be taken Responsibility Remarks
2. Noise and (1) The minimum speed of vehicles on the highway shall be set at EAD air pollution 50 km/h. (2) Vehicles running on the highway shall follow international driving EAD practice. Use of horns shall be restricted. (3) Vehicles shall be equipped with silencers and purifiers of exhaust gases Ministry of Com- progressively and in accordance with relevant regulations. munications Supervision (4) Vehicles not complying with the noise standard shall not be given Department of operating licenses. Vehicle (5) Public awareness and education shall be promoted to familiarize people Traffic Department both with the air pollution and noise problems caused by vehicles and with related regulations. (6) Based on the results of future monitoring, adequate measures, including Environmental noise barriers and noise proofing of buildings shall be taken in the Monitoring Station areas where noise exceeds the standard.
3. Others (1) Highway drainage system shall be cleared and dredged regularly. Maintenance Divi- Ditches on slopes shall be backfilled and reinforced promptly when sion of EAD they are eroded by rain water. (2) Use of non-leaded gasoline shall be encouraged. It is also encouraged EPB not to plant certain vegetables along the highway.
D. Environ- mental moni- torina
1. Construction Regular monitoring on air pollution (TSP, CO and NO.), water pollution, Expressway Envi- period noise and vibration will be carried out. ronmental Protec- tion Sectors (EEPU)
2. Operation Regular monitoring on air pollution (TSP, CO, NO. and lead in TSP), EAD and Environ- period water pollution, noise and vibration, and lead in soil and crops will be mental Monitoring carried out. Station KEY ELEMENTS OF THE EAP FOR ROAD SAFETY PROGRAM
Env. Issues Action taken/to be taken Responsibility Remarks
A. Design Phase
1. Social dis- (1) 140 crossroads and passages were designed for pedestrians and local Zhejiang Provincial See design documents. ruption vehicles to cross the highway safely. Highway Adminis- tration Bureau (ZPHAB) 2. Noise and (1) All houses within 20 m from the reconstructed road shall be resettled. ZPHAB See Resettlement Action air pollution In addition, noise barriers shall be installed around the three schools Plan. along the road. The construction of new residences shall be prohibited within 200 m from both sides of the road until 1998 when the Express- way becomes available.
3. Flooding and (I) Bridges shall be reconstructed to meet the requirement of draining ZPHAB See design documents. navigation floods and water transportation.
B. Construction 00 Phase
I. Dust and air (1) Construction materials such as earth, gravel and stones shall be piled Contractor See contract clause, pollution more than 100 m away from residential areas, villages and schools, Vol. 1, Section 2.VI. 18.1. and will not be piled in the open air. Jiaxing Environ- mental Protection Bureau (Jiaxing EPB)
(2) In dry weather, construction and piling sites shall be watered to control See contract clauses, dust (at least 4-5 times a day). Vol. 1, Section 2.VI.19.1, 20.1.
(3) Asphalt shall be heated and mixed in a closed roaster. Asphalt heating See contract clauses, factories shall be located at least 100 m away from villages and towns Vol. 1, Section 2.VI. 19.1, > > on the lee side of the wind direction. 20.1.
(4) Asphalt shall be mixed in a movable high-temperature container See contract clauses, without heating source. Vol. 1, Section 2.VI. 19.1, 20.1. Env. Issues Action taken/to be taken Responsibility Remarks
2. Noise (1) Construction activities shall be stopped during nighttime (20:00-6:00) Contractor See contract clauses, within 150 m from sensitive areas, such as near three schools at the Vol. 1, Section 2.VI.19.1, roadside in Chongfu, Tongxiang, and Cardigon Market. Jiaxing EPB 20.1. (2) All the construction machinery shall be equipped with proper sound mufflers to reduce noise.
3. Traffic (1) Detailed construction transportation plans shall be prepared to avoid Contractor See contract clauses, problem transportation of construction materials at peak traffic hours. Vol. 1, Section 2.VI. 19.1, 20.1. (2) River transport shall be used where appropriate to avoid traffic Jiaxing Highway See EAP. congestion on the road. Administration Bureau (JHAB) (3) Temporary entrances and exits shall be set up at the crossroads to reduce impact on passengers and local vehicles. (4) Construction materials shall not be piled at any moment on National Road 320.
4. Water (1) Temporary septic tanks shall be installed to avoid direct discharge of Contractor See contract clauses, pollution waste water from construction and labor camp sites into rivers. ESD Vol. 1, Section 2.VI.20. 1, 20.3. (2) Garbage and other wastes from construction and labor camp sites shall be collected and disposed of in an adequate manner. (3) Fuel storage areas shall have surrounding drainage system and collec- tion pools in order to avoid accidental leakage of fuel. Asphalt and other chemicals shall be well managed and covered properly.
5. Soil erosion (1) Measures will be taken to prevent irrigation canals from being filled Contractor See contract clause, with or blocked up by construction materials. Vol. 1, Section 2.VI.20.3. (2) Excavated areas will be filled and pressed tightly as promptly as possible. (3) A sufficient number of escape channels shall be constructed at con- : struction, disposal and material borrow sites. 4s (4) Top soil shall be saved and returned as much as possible after construction works. Env. Issues Action taken/to be taken Responsibility Remarks
C. pemration Phase
1. Noise and (1) Houses within 20 m from the reconstructed road shall be resettled. GAB See EAP. air pollution (2) Vehicles shall be requested to equip with exhaust gas purifiers. ZPHAB (3) Construction of new residences will not be allowed within 200 m from the road until 1998 when the Expressway becomes available. (4) Noise barriers shall be installed around the Suburban Primary School of Chongfu, Buyuan Middle School of Tongxiang and South Lake Middle School of Jiaxing. (5) Vehicles shall be requested to equip with sound mufflers. Use of loudspeakers shall be prohibited.
2. Transpor- (1) Permission shall be obtained for the transportation of hazardous sub- Public Security See EAP. tation stances. Bureau (PSB) ° (2) Stations shall be set up to check transportation of hazardous substances. JHAB
3. Water (1) Highway facilities such as garages and washing stations shall not be IHAB See EAP. pollution located near water bodies.
D. Environ- mental Monitoring
1. Construction Regular monitoring of air pollution (CO, NO., TSP, dust and THC), water ZPHAB See EAP. period pollution (PH, DO, BODs, COD, SS and oil) and noise will be carried out. Jiaxing EPB
2. Operation Regular monitoring of air pollution (CO, NO1 , TSP and THC), water ZPHAB See EAP. > period pollution (PH, DO, COD, SS and oil) and noise will be carried out. Jiaxing EPB Off - 171 - ANNEX 4
LAND ACQUISITION AND RESETTLEMENT
A. BACKGROUND
1. This annex summarizesthe land acquisitionand resettlement impacts arising from constructionof the Shanghai-HangzhouExpressway (hereafter, "the Expressway")and for road expansionand upgrading under the Road Safety Program (hereafter, "RSP"). The annex is based on informationcollected during Bank missionsand providedin the ResettlementAction Plans (RAPs) prepared by the project implementing agencies (the Shanghai-Hangzhou Expressway Construction Executive Commission or "HHEC", and the Zhejiang Provincial ExpresswayProject ExecutiveCommission, or "ZPEC", in Zhejiang). All resettlementactivities associated with the project are being carried out in accordance with these RAPs.
2. The resettlementaspects of the projectreceived considerable attention from the Bank beginningin 1993 with the pre-appraisaland appraisal. The extensivepreparation that has resulted was warranted by the large scale resettlementimpact, with more than 55,000 people affected by the loss of land, employment, and assets under the project; the implementing agencies' limited experience in preparing and implementing RAPs consistent with Bank guidelines; and the Bank's increasing awareness and ability to assist the Chinese government to address the complex issues related to resettlement.
3. The advanced state of preparation of this project, with an estimated start of major construction in September 1995, and early stage construction that began in 1994 has resulted in implementationof the RAPs prior to Board approval. All resettlementactivities in Zhejiang Province (hereafter "Zhejiang") have been completed, and resettlement in Shanghai Municipality(hereafter "Shanghai")would be carried out during June and July of 1995. The early resettlement was implemented in a manner consistent with RAPs that were largely satisfactory to the Bank but still under discussion. However, in order to ensure equity and consistency of resettlement activities, Shanghai and Zhejiang are applying the principles, eligibility criteria, and compensationstandards of the final revised RAPs retroactively so that all project affected people are resettled according to RAPs found acceptable to the Bank. In Zhejiang, where this retroactive provisionis relevant, all retroactive compensationwill be paid before the end of July 1995. In Shanghai,resettlement would be consistentwith the final revised RAP, so that the retroactive provision would not apply.
4. Land acquisitionand resettlementactivities along the Pengbu-Wengmeiadvance contractingsection in Zhejiangwere completedbetween October 1993 and April 1994. In order to ensure that the land acquisitionand resettlementfor this sectionwas carried out satisfactorily, the Bank requested that an evaluationof the resettlementactivities be prepared by an independent - 172 - ANNEX 4
monitoring institution. The resulting report indicated satisfactory completion of relocation activities, but cited delays in the process of providing eligible people with employment in enterprises. The employmentplacement process for the Pengbu-Wengmeisection was completed by November 1994.
5. The process and strategies used for resettlement in this advance contracting section, and further, early lessons learned from implementationof resettlement in this section and under other projects in China, were scrutinized and, in most areas, the approach to resettlement strengthened as reflected in the final, revised RAPs for all project components. Initially, the Bank's concerns about the large number of people affected by this project and the limitedprevious experiencewith formulatingRAPs warranted more intensivepreparation of the project's resettlementactivities. In responseto this concern, both Shanghaiand Zhejiang, with the assistance of specializedagencies, initiated a socio-economicsurvey of the project area in late 1994 to: (a) verify the results of the earlier census surveys and (b) establish a baseline of income levels and socio-economicconditions (includingassets held) of the affected population. The detailed data from socio-economicsurveys became the basis for the final revised RAPs.
6. During further preparation of the RAPs and in consultation with the Bank's technical experts, other critical aspects of the resettlementprocess were addressed, including: (a) the establishmentof a policy framework to ensure that living standards all categories of affected people are, at a minimum, restored; (b) the establishmentof transparent mechanisms to redress grievances of affected people and the procedure for appeals; (c) the necessity to compensateall affected assets, and housing in particular, at full replacement values; (d) the inclusionof contingencies,especially for inflation, in resettlementbudgets; (e) the strengthening of institutionalarrangements for both internal and external monitoring of land acquisition and resettlementactivities; and (f) the planningand executionof detailedprocesses of job creation.
7. All the above issues have been addressed in the RAPs prepared by Shanghai and Zhejiang. Regarding the developmentof a RAP for the Road Safety Program, Zhejiang authorities conveyed to the Bank that they would prepare the RAP covering all the sections of the componentas opposedto preparing a Phase I RAP for the project as a whole before project approval and preparing separate Phase II RAPs for each of the specific sections before their respective implementation.Zhejiang has accordinglysubmitted a RAP covering all the sections to the Bank in May, 1995. This RAP has been found to be acceptable.
B. PRINCIPLESOF RESETruMENT
8. In China, national, provincial, and municipalgovernment principles guide the process of resettlement, requiring that the incomesand standardof living of affected people are restored or improved as soon as possible after the initial disruptioncaused by land acquisition. These principles seek to (a) relocate houses and enterprises as close as possible to their initial location; (b) maintainor improve the housing quality and size; (c) replace farm land through - 173 - ANNEX 4 readjustmentin the same village; and (d) arrange for jobs in nearby enterprises when farm land cannot be replaced. These principles provide the basis for all RAPs in the proposed project. Because of the pace of urban developmentin greater Shanghai, all surplus labor in Shanghai section (the surplus labor is defined as the number of persons above the accepted labor to land ratio for the affected village) will be resettledin new and existing enterprises.
C. PoIucY FRAMEWORKAND LEGAL PROVLgONS
The national regulations governingresettlement issues are as follows:
(a) The Land AdministrationLaw of the People's Republicof China for Land Acquisition and Resettlement;
(b) Regulationsfor Implementationof Land Administrationof the People's Republic of China;
The additional specific regulationsgoverning resettlementin Shanghai Municipalityare:
(a) AdministrationMeasures for ShanghaiLand Construction;
(b) Compensationstandards and stipulations of various bureaus of Shanghai Municipal Government; and
(c) Administration Enforcement Regulations of Urban House Removal in Shanghai Municipality.
The additional specific regulationsgoverning resettlementissues in Zhejiang Province are:
(a) Measures for Implementationof Land Administrationof Zhejiang Province; and
(b) City and county government stipulations for land acquisition and compensation standards.
D. MONITORING, EVALUATIONAND REPORTING
9. Both internaland external monitoringunits will be responsiblefor reportingand analyzing the status of resettlement at all levels in order to facilitate timely and proper distribution of compensationfunds, and appropriate relocation and resettlement of affected people. The scope of monitoring includes surveys and analyses based on completed land acquisition and resettlement. The implementationof the Shanghai RAP will be monitored internally by HHEC and externally by the ShanghaiFederation of Social Sciences. The Urban - 174 - ANNEX 4 and Rural Planning and Design Institute of Hangzhou University has been engaged by ZPEC both for conducting baseline surveys and for independent monitoring and evaluation of resettlement These agencieswere originallyretained to conductsocio-economic surveys and will continue their involvementin the resettlementissues.
10. The monitoringis designedto examineand monitorprogress in implementation of the RAPs, paying particular attentionto the timelinessand adequacy of compensationfunds, proper relocation of resettlers, delivery of specified entitlement(including jobs and provisions for meeting the needs of vulnerablepeople) to eligible resettlers, and the adequacyof measures to restore the standardsof living of the affectedpeople. The independentmonitoring institutions will conduct surveys to determine the degree of success in meeting the objectives of the RAPs, and will report their findings in writing to the HHEC, ZPEC, and ZPHAB, recommending specific actions when warranted.
11. A schedulefor resettlementmonitoring and reportinghas been developedbased on the implementationschedules for land acquisitionand resettlement, and has been agreed between Shanghai and Zhejiang and the Bank. The first monitoring report on the Pengbu- Wengmeisection submittedto the Bank in September 1994, reported satisfactory completionof new houses for all affected persons, but noted that job creation needed to be expedited. Future monitoring reports will focus on the progress made in providing jobs to the eligible affected persons. Monitoringreports covering the recently completedresettlement activities in Zhejiang Province are under preparation; the first internal monitoringreports were submittedto the Bank on June 15, 1995, and the first independentmonitoring reports would be submittedto the Bank by July 15, 1995. For resettlementactivities in Shanghai, the first internal and independent monitoringreports would be submittedto the Bank by July 15, 1995 and September 1, 1995, respectively. After the initial reports, internal monitoring reports would be prepared and submitted to the Bank every 3 months, and independentmonitoring reports would be prepared and submittedto the Bank every 6 months.
E. IMPACT OF THE PROJECT iN SHANGHAI
12. Route Description. The Shanghai segment of the Shanghai-Hangzhou expressway will extend from Songjiang to Fengjing, covering a distance of 27.6 km out of a total expresswaylength of 130.2 km. Resettlementwill be necessaryfor the populationresiding in 29 villages of 7 townships, located in the counties of Songjiangand Jin Shan. Efforts have been made to minimizeresettlement while designingthe alignment.
13. Assessment of Impact on Local Population. During the initial stages of project development,the highway planning and design institute carried out the census surveys of the affected people and properties. The Shanghai Federation of Social Science Societies conducteda socioeconomicsurvey of the people and enterprisesaffected by land acquisitionand - 175 - ANNEX 4
resettlement,during October and November 1994. The socioeconomicsurvey report is available in the project files.
14. The expresswaywill require permanentacquisition of about 2,862 mu of land, includingland necessary for the reconstructionof housesand enterprises. An additional529 mu will be borrowed for temporary use during the constructionphase. Virtually all of the land required for the right-of-way (ROW) is cultivated or in economic use, as is generally true in China. However, the land required for this project constitutes less than 0.5 percent of the cultivated land in the two affected counties of Shanghai. Around 141 houses will need to be relocated.
15. An estimated 4,260 people will be directly affected by permanent land acquisition for the main expressway and interchanges in Shanghai, comprising 2,823 people affected by land acquisition,of whom, 1,814 people will be affected by the acquisitionof farm land, 604 people will be affected by house demolition (affecting 141 houses), and 833 people will be affected by relocation of enterprises.
F. STRATEGIES FOR RESETLEMENT IN SHANGHAI
16. The majority of individuals losing residences in Shanghai will be relocated within their village. New sites have been selected by the local township and county land departments, with the assistance of the villages. The distance between the original house and the new house will not normally exceed 500 meters. The local governmentintends to construct replacement housing; households will, however, have the option of making their own arrangements for new housing. The local county governmentswill finalize transition period arrangementsfor temporary housing during the period between demolitionand constructionof replacement housing. Y 1,200 per household will be provided for that purpose. The compensationbudget for house demolitionis Y 9.7 million.
17. Enterprisesto be demolishedare being relocatedin the vicinityof their original sites, and workers affected by enterprise relocation retain jobs in the same enterprises. Compensationamounts are decided by negotiation and are equal to the replacementvalue of assets lost. Enterprises are compensated for site purchase, removal and installation of equipment. Demolitionand reconstructionare the responsibilityof the managingunits. The compensationbudget for enterprise relocation is Y 4.62 million. The compensationbudget includes a provision for the payment of salaries during the period when work is stopped due to relocation.
18. People whose livelihood is affected by the loss of agricultural land are being resettled by local governments. A portion of their total compensation assessed for crops and trees is paid directly to the affected population. Since the local governmentis responsible for resettling the affected people, the major part of the compensationas land compensationfees and - 176 - ANNEX 4 resettlementsubsidy goes to townshipor village governments. The compensationreceived by the village and/or townshipgovernments is used collectivelyto developvillages-through, e.g., land reorganization-and establishingor expandingvillage or townshipenterprises. Local village committees are expected to plan the investmentof compensationmonies in consultation with their township government.
19. The resettlement of farners in the Shanghai section will be accomplished entirely through transfer to nonagriculturalemployment. The surplus labor will largely be absorbed by existing township and village enterprises; however, a sizeable number of workers will also be employedby new rural enterprises.
20. Elderlypersons (definedas males who are over 55 and females who are over 45 years of age and who have only a few years of education)the RAP provides for payment of an old age pension at the current standard rate of Y 170 per month. The rate for old age pensionmay be increasedin future. The Shanghaiauthorities have agreed to considerthe option of using project contributionsto the pension fund (Y 36,000 to 48,000 per person) to finance self-employmentfor the more active among these older persons. The compensation for permanent land acquisitionis nearly Y 119 million. This includes resettlementsubsidies to be paid to enterprisesthat agree to createjobs for resettlers. There is also a provision for payment of a monthly unemploymentstipend of Y 170 per person per month, until the time a job is found.
21. Temporaryland acquisition(land borrowing)will affect nearly 529 mu of land. Affected farmers will receive payments for lost crops from the township government, and the land will be returned to the farmer by the contractor in the same condition as before. The compensationbudget for this item is Y 3.8 million.
22. Compensationfor all other assets includes payments for relocating tombs, village irrigation systems, etc. In addition, the managingunits of affected telecommunications facilities and power lines are to be paid compensationfor relocation.
G. COMPENSATION STANDARDS AND BUDGET IN SHANGHAI
23. Compensation Standards. In accordance with the relevant policies and regulations, compensation standards have been determined according to the following categories: (1) land acquisitioncompensation; (2) compensationfor relocation of houses and enterprises; (3) compensation for relocation of infrastructure; and (4) compensation for temporary land borrowing. A summary of compensationby category is shown below.
24. Compensation Budget. The RAP provides cost estimates for the various categories of expenditures related to land acquisition and resettlement. The cost estimates include contingenciescalculated at 2 percent of the total amountof compensationand provides - 177 - ANNEX 4
10 percent allowance for inflation and risk. A provision for administrativecosts equivalent to two to three percent of total land acquisitionand resettlementcompensation has been established. Contingenciesof two percent of total compensationand labor resettlement expenses have also been reserved in the overall budget.
COMPENSATIONBUDGET IN ShANGHA (Y million)
House relocation 9.7 Enterprise relocation 4.62 Permanentland acquisition 119.0 Temporary land acquisition 3.8 Telecommunicationand power lines, etc. 11.9 AdministrationFees and Contingencies 13.8
Total 173
H. IPLEMENTATION OF SEIANGHAI RAP
25. The HHEC, on behalf of the ShanghaiMunicipal Government,is responsible for implementing the RAP in a manner that ensures timely restoration of incomes and the standards of living of the affected people. Consequently, HHEC is responsible for implementation, and monitoring of land acquisitionand resettlement activities, coordinating, negotiating agreementson resettlementwith the other levels of governmentand allocating the compensationbudget.
26. Responsibilitiesfor resettlementat lower levels of Shanghai governmentare divided as follows:
(a) County Level. Songjiangand Jin Shan Countiesassume the responsibilityto arrange, coordinate and supervise land acquisition and resettlement activities within the framework of the RAP approved by the Municipal Government. The RAP, together with municipal city agreements, direct counties to: undertakeland acquisitionand resettlement for the expressway and access roads; fix compensationstandards; give directions to townships for agreements with affected population; and disburse compensationfunds to towns and townships.
(c) Town or TownshipLevel. The townshiplevel governmentsassume responsibility on behalf of the county to: arrange, execute, and coordinate land acquisition and resettlement activities; carry out land and relocation surveys; make compensation - 178 - ANNEX 4
payments to affected individuals, enterprises, and villages; make arrangements for rehabilitationof surplus labor; and rehabilitate civic infrastructure.
27. Resettlement offices have been established in the affected counties and townships. Each affected village has also assigned two to three persons from the village committee to be responsible for land acquisitionand relocation activities.
28. Implementation Schedule. A timetablefor resettlementactivities in Shanghai is providedbelow. During projectpreparation, Shanghaiauthorities confirmed that the schedule for compensationand demolition of houses is designed to allow completion of replacement housing before or just after demolition of houses. In the latter event, adequate transition arrangementswill be made for the affected persons: a sum of Y 1,200 per person has been allocated for this purpose.
IPLEMETATION SCHEDULEIN SHANGHAI
Notify affected population May - Jun 95 Approve plan for house relocation May - Jun 95 Sign land acquisitionagreement with counties June 95 Payment of compensation June - Aug 95 Demolish and relocate houses June - Aug 95 Demolish and relocate enterprises June - Aug 95 Labor resettlement Jun 95 - Jun 96 Hand-over ROW to contractors September 95 Remove and relocate utilities, etc. Jun 95 - Mar 96 Monitoring May 95 - Sep 96
I. IMPACTOF THE PROJECTIN ZHEJIANG
29. Route Description. The Zhejiangsegment of the expresswaywill extend from Pengbu (near Hangzhou) to Fengjing (on the border with Shanghai Municipality), covering a distance of 103 km. Resettlementwill be necessary for the population residing in 106 villages of 24 townships, located in Yuhang and Jiashan counties and the county-level cities of Hangzhou, Haining, Tongxiang, and Jiaxing along the route. Efforts have been made to minimize resettlement while designing the alignment. Advance construction of the Pengbu- Wengmei section adjoining Hangzhou began in late February 1994. In mid-1994, an - 179 - ANNEX 4 independent monitoring and evaluation agency reviewed the resettlement. The independent monitoring report confirmed that the physical relocation and constructionof new houses had been satisfactorilycompleted. However, the report recommendedthat the process of providing jobs to eligible persons be accelerated. Resettlement of the population affected by the RSP componenthas largely been completedaccording to the principles set out in the RAP.
30. Assessment of the Impact on Local Population. The Rural and Urban Planning and Design Instituteof HangzhouUniversity conducteda socioeconomicsurvey of the persons, properties and enterprises to be affected by land acquisition and relocation in the Zhejiang section during October and November 1994. The detailed survey report is available in project files. A total of 11,108 mu of land has been permanentlyacquired for the expressway ROW in Zhejiang Province. Over 2,361 mu has been acquired temporarily for use during the constructionphase. Virtually all of the land required for ROW is cultivatedor in economic use, as is generally true in China. However, this constitutesless than 1.5 percent of the cultivated land in Zhejiang Province. In August 1994, the demolitionof the 1,436 houses and relocation of affected householdsbegan. For the RSP component, 1618 mu of land has been permanently acquired, resulting in about 0.3% reduction of cultivatedland in the affected area.
31. The populationaffected by the permanentacquisition of land for the expressway construction-including all persons living in houses to be relocated and workers in relocated enterprises-is 38,047 persons. Of these, 5,138 people are affected by house relocation; 740 are affected due to enterprisesrelocation and 6,425 people need to be economicallyrehabilitated (have their incomes restored). Of these, about 308 persons will be affected only by house demolition;and 31,861 persons will be affected by land acquisitiononly. The need for economic rehabilitation of local groups is determinedbased on a maximum allowable ratio of labor to cultivated land, as governed by public policy. About 14,000 people are affected by the permanent land acquisitionfor the RSP. Of these, 384 people are affected by the loss of house only and 786 are affected by relocation of houses and enterprises.
J. STRATEGIES FOR REsETmLEMENT IN ZHEJIANG
32. The majority of individuals losing residencesare being relocated within their village, with compensation set at "full replacement cost" in order to ensure that housing standardsare maintained. House owners are responsiblefor the demolitionof their property as well as any reconstructioninvolving the scrap materials. Sites for rebuilding the houses were finalized and compensationfor houses paid to the affected families before they were required to move from their original houses. The compensationbudget for house demolitionis Y 92.18 million for the expressway component,and Y 12.23 million for the RSP componentincluding a provision for mitigating the hardship caused by demolition in advance of completion of replacementhousing. - 180 - ANNEX 4
SUMMARYOF LAND ACQUITON ANDREsETSMENTF I MPACr FORZHEIIANG EXPRESSWAY SECTION
Pengbu- Wengmei- Wengmei Fengjing section section Total
Length of section (km) 13.2 89.4 102.6
Permanent land acquisition (mu) 11,108
Temporary land acquisition(mu) 277 2,085 2,362
Houses to be relocated (number) 1,436
Houses to be relocated (m) 291,961
Persons affected by permanent land acquisition(including house and enterprise relocation) 38,047
Persons losing house only 308
Persons affected by both house removal and land acquisition 5,138
Persons affected by enterprise relocation 740
Total compensationbudget (including administrationfee and contingencies) (Y million) 294
33. Enterprises to be demolishedare compensatedfor site purchase, removal and installationof equipment,building, demolitionand relocation and for the losses resulting from stoppingof production. All workers affected by relocationof enterpriseswill remain employed in the same enterprises. Sites for relocation of affected enterprises were finalized after consultation with the management of the affected enterprises and in accordance with the development plans of the respective townships and villages. The compensation budget is -181- ANNEX 4
Y 26.21 million for the expressway component,and Y 2.41 million for the RSP component, including a provision for the compensationof work interruption.
34. People whose livelihood is affected by the loss of agricultural land are being rehabilitated through land redistribution (provision of new land) or employment in non- agricultural enterprises. Compensationfor standing crops and trees was paid directly to the affected people. This task, the major share of resettlement compensation(land compensation fees and resettlement subsidies) is retained and managed by county, township, or village governments. Local village committeesand townshipgovernments jointly plan the investment of these compensationfunds. Accordingto Chinesepractice, village and townshipgovemments play an important role in resettlementby initiating special developmentprojects, for example, involving land reorganization,aquaculture and village and township enterprises.
35. Resettlementoffarmers was achieved through readjustmentand redistribution of land to the extent feasible. Where this was not possible, remaininglaborers are securingjobs in state and collective enterprises or have elected the option of cash compensation for self employment. The majority of the economicallyactive population affected by permanent land acquisitionwill remain primarily engagedin agriculture, after readjustmentof land. A total of 3,374 enterprise jobs was required to resettle full-time farmers in areas of the route where urbanization has substantiallyreduced farm land, such as Hangzhou City and Yuhang County (in the Pengbu-Wengmeisection). The compensationfor permanent land acquisition is over Y 125 million for the expresswaycomponent, and Y 14.5 millionfor the RSP component. This includes resettlement subsidiesto be paid to enterprises that agree to create jobs for resettlers.
36. Provisions have been made for elderly unskilled people consideredunsuitable for enterprisejobs. They are being paid an old-age pension of about Y 100 per month.
37. Farmers affected by temporaryland acquisition (land borrowing) will be paid compensationfor lost crops and for the loss of productionfor the duration of the temporaryland borrowing, and their land will be returned to them by the contractor in its original condition.
38. Compensationfor other assets includes payments for relocating tombs. In addition, the managingunits of affected schools, telecommunicationsand power lines were paid compensationfor relocation of their facilities and assets.
K. COMPENSATIONSTANDARDS AND BUDGET IN ZHEJIANG
39. Compensation Standards. In accordance with the relevant policies and regulations, compensationstandards have been developedfor the following categories:
(1) land requisition; - 182 - ANNEX 4
(2) borrowed land; (3) building relocation; (4) power and telecommunicationinfrastructure; and (5) other infrastructure.
The total amounts of compensationpaid for these categories were as follows:
COMPENSATIONBUDGET FOR ZHEJIANG SECTION OF SHANGHAI-HANGZHOUEXPRESSWAY (Y million)
Express- Pengbu- Wengmei- way Wengmei Fengjing Total RSP
House relocation 20.17 72.01 92.18 12.23 Enterprise relocation 6.80 19.41 26.21 2.41 Permanent land acquisition 54.16 71.01 125.17 14.48 Temporary land acquisition 4.65 9.59 14.24 Telecommuniication and power lines, etc. 5.90 9.12 15.02 0.52 Administration fees 2.16 4.63 6.79 0.45 Physical Contingency" 4.69 9.29 13.98 1.66
Total 98.53 195.06 293.59 31.75
Includes survey, monitoring and evaluation costs and other allowances
40. Compensation Budget. The RAP provides cost estimates for the various categories of expenses related to land acquisitionand resettlement. Specialprovisions has been made for contingenciesat the rate of 5 percent of total land acquisitionand resettlement cost, in order to meet any unforeseenexpenses. Areas differ in the compensationper unit of land and per householdbecause of urban land values, productivitydifferences due to croppingpatterns, quality of soils, etc.
L. IMPLEMENTATIONOF ZHEJIANG RAP
41. ZPEC, on behalf of the ZhejiangProvincial Government, is responsible for overall implementationof resettlementplans, and specificallyfor the timelyrestoration of living standards and income. Consequently, ZPEC is involved in negotiating agreements on resettlement with the various levels of government, allocating the compensationbudget, and coordinating the implementationand monitoringof land acquisitionand resettlementactivities. It has also the responsibility to implementation and monitoring of land acquisition and resettlement activities. The corresponding institutionalresponsibility for the RSP is with the ZPHAB. -183 - ANNEX 4
IMPLEMENTATION SCHEDULE IN ZHEJIANG FOR LAND ACQUISITION AND RESETTLEMENT IN ZHEJIANG SECTIONOF SHANGHAI-HANGZHOUEXPRESSWAY
Pengbu- Wengmei Wengmei-Fengjing RSP
Sign land acquisition agreement with village Oct - Dec 93 Aug - Sep 94 Sep - Oct 94 Pay compensation for land acquisition Oct - Dec 93 Sep - Oct 94 Sep - Oct 94 Land readjustment or resettlement into enterprises Jan - Feb 94 Oct 94 - Mar 95 Oct 94 - Feb 95 Issue notice of demolition Nov - Dec 93 August 1994 Oct 94 Sign compensation agreement Nov - Dec 93 Aug - Sep 94 Oct 94 Pay compensation for relocation Nov 93 - Jan 94 Aug - Sep 94 Oct 94 Building relocation Feb 93 - May 94 Sep 94 - Feb 95 Dec 94 - Feb 95 Reconstruction of structures Feb - Jun 94 Oct 94 - Apr 95 Dec 94 - Apr 95 Hand over ROW to contractors Dec 93 May 95 May 95 Monitoring Feb 94 - Jun 96 Jan 95 - June 96 Apr 95 - Jun 96
42. Responsibilities for resettlement at lower levels of Zhejiang government are divided as follows:
(a) City Level. The cities of Hangzhou and Jiaxing assume responsibility to arrange, coordinate and supervise land acquisition and resettlement activities within the framework of the RAP approved by the provincial government.
(b) County Level. The RAP and city agreements provide the direction for the counties to: undertake land acquisition and resettlement for the expressway and access roads; fix compensation standards; direct townships in formatting agreements with the affected population; and allocate compensation funds to towns and townships.
(c) Town or Township Level. Township, on behalf of the county authorities, arrange, execute, and coordinate resettlement activities, undertake land and relocation surveys, and make compensation payments to affected individuals, enterprises, and villages.
43. Resettlement offices have been established in the affected cities, counties and townships. Each affected village will also assign 2-3 persons to be responsible for land acquisition and relocation activities. Administrative costs were equivalent to 2 percent of the estimated costs of land acquisition and resettlement. A contingency fund equivalent to 5 percent of compensation plus administrative costs has been established.
44. Implementation of Resettlement for the Pengbu-Wengmei Section. Construction of the Pengbu-Wengmei section began in February 1994. Compensation to affected persons was paid during the period October 1993 to January 1994. Structures were demolished - 184 - ANNEX 4 about three months after payment of the first installment (between February and April 1994). Construction of new houses was completed in August 1994. The compensation for house relocationincluded a hardshipallowance for the period betweenhouse demolitionand completion of new housing. Farm land was acquired between October and December, 1993; compensation to local government and farmers was paid during the same period. Acquisition of and compensationfor borrowedland was completedbetween January and March, 1994. The process of resettling surplus labor into enterprises is complete.
45. Implementation of Resettlement for the Wengmei-FengjingSection. Land acquisitionand demolitionof structures was carried out between September 1994 and February 1995. The major part of compensationpayments were made by December, 1994. Readjustment of land and resettlementof surplus labor has been completed.
46. Implementation of Resettlement for the Road Safety Program. Land acquisition,demolition and reconstructionhave been carried out between September 1994 and April 1995. The major part of compensation payments were made in October 1994. Readjustmentof land and resettlementof surplus labor has been completed. -185- ANNEX 5
PROJECT COST AND FINANCING
1. This annex summarizes the estimated project cost and financing arrangements for the project. The costs were estimatedon appraisal in November 1993, and updatedafter devaluation of the yuan in 1994. The followinginflation rates were assumed:
Foreign Local
1994 3.00% 25.00% 1995 6.90% 14.00% 1996 2.00% 10.50% 1997 1.60% 8.50% 1998 2.10% 7.00% 1999 2.40% 6.50% 2000 2.20% 6.20% 2001 2.50% 6.20%
2. The assumed exchangerate is Y 8.5 per dollar (the effectiveexchange rate as of January 1995). Taxes and dutiesapplicable to civil works and goods were included in the cost estimates. The project entities in Shanghai and Zhejiang have included such taxes in their own cost estimatesand made provision for these costs.
3. Taxes and duties on equipmentand works have been included in the cost estimates. The taxes and duties on equipmentcomprise import duties at an average rate of 14.5% of CIF price for equipmentto be procured in Shanghai, and 20% for equipmentto be procured in Zhejiang. Value-addedtaxes would also apply to equipmentpurchases, at a rate of 17% of the local price of equipmentin both provinces. Taxes on civil works were estimatedat 3.5 % of base cost. The IBRD loan would not be used to finance taxes and duties. -186- ANNEX 5
SHANGHAI-ZEIANG HIGHWAY PROJECT PROJECT COST SUMMARY La
Local Foreign Total Local Foreign Total Foreign (Y million) (S million) %
A. Works ThSTanghai Section (a) C~vil works 578.90 517.67 1,096.57 68.11 60.90 129.01 47% C5)E&M supply and installation 14.40 13.40 27.80 1.69 1.58 3.27 48% 2. Zegiang Section (a) Civil works 1,020.37 1,020.37 2,040.74 120.04 120.04 240.08 50% (b)E&Msupply& installtion 23.16 92.65 115.81 2.72 10.90 13.62 80% 3. Road Safety Program 96.77 41.47 138.24 11.38 4.88 16.26 30% Subtotal 1,733.60 1,685.56 3,419.15 203.94 198.30 402.24 49% B. Eauimernt 1. Shanghai Section ()peration & maintenance 2.73 24.59 27.32 0.32 2.89 3.21 90% Laboratories 0.46 4.14 4.60 0.05 0.49 0.54 90% Research 0.60 5.36 5.95 0.07 0.63 0.70 90% Environment 0.03 0.28 0.31 0.00 0.03 0.03 90% Other 0.38 3.44 3.82 0.04 0.40 0.45 90% 2. iang Section (a) Operation & maintenance 4.10 36.87 40.97 0.48 4.34 4.82 90% p (b) Laboratories 0.62 5.62 6.24 0.07 0.66 0.73 90% (c)Research 0.16 1.42 1.58 0.02 0.17 0.19 90% (d)Environiment 0.06 0.53 0.59 0.01 0.06 0.07 90% (e)Other 0.49 4.44 4.93 0.06 0.52 0.58 90% 3. RoadSafety Program 0.19 1.68 1.87 0.02 0.20 0.22 90% Subtotal 9.81 88.36 98.17 1.15 10.40 11.55 90% C. Technical Assistance 1. Lmpementation Support /b I. Snamghai Section 17.01 17.01 34.02 2.00 2.00 4.00 50% b. Zhejiang Section 29.15 29.15 58.30 3.43 3.43 6.86 50% c. Road Safety Program 2.26 0.00 2.26 0.27 0.00 0.27 0% Subtotal 48.42 46.16 94.58 5.70 5.43 11.13 49% 2. Institutional Development /c a. Shanghai Section 0.77 4.38 5.15 0.09 0.52 0.61 85% b. Zhejiang Section 4.36 6.96 11.32 0.51 0.82 1.33 62% C.Road Safety Program 0.71 2.86 3.57 0.08 0.34 0.42 80% Subtotal 5.84 14.20 20.04 0.69 1.68 2.36 71% BaseCost/a 1,797.67 1,834.27 3,631.94 211.47 215.80 427.27 51% Physical Contingency id 178.20 173.18 351.38 20.96 20.37 41.33 49% Price Contingency/e 1.191.83 298.68 1.490.51 140.22 35.14 175.36 20% E. Land Acguisition & Resettlement If I. Shanghal Section 172.96 0.00 172.96 20.35 0.00 20.35 0% 2. Zhejiang Section 293.59 0.00 293.59 34.54 0.00 34.54 0% 3. Road Safety Program 31.56 0.00 31.56 3.71 0.00 3.71 0% Subtotal 498.11 0.00 498.11 58.60 0.00 58.60 0% Taxes and Duties I& 226.06 0.00 226.06 26.59 0.00 26.59 0% Tot lProject Cost 3.891.86 2.306.13 6.197.99 457.85 271.31 729.16 37%
/a Base cost were estimted in yuan. The assumed exchange rate is Y 8.5 per dollar. & Comprises consultant services for construction supervision. Comprises consultant services fortechnical assistance andtraining. I nPhysicalcontingencies were esigmated at 10.00% of the cost of works and construction supervision. /i Pricecontingencies asasumedthe following rates of inflation: 1994 1995 1996 1997 1998 1999 2000 2001 USS 3.TU 6.90 2.WW 1.DWT 2.W 2.4U30 2.M) 2.3W Yuan 25.00% 14.00% 10.50% 8.50% 7.00% 6.50% 6.20% 6.20%
/f landacquisition and resettlement figures include contingencies. /g Includes import duties and valued-added taxes on equipment and taxes on civil works. -187- ANNEX 5
SHANGHAI-HANGZHOUEXPRESSWAY COST SUMMARYFOR SHANGHAI SECTION La
Local Foreign Total Local Foreign Total Foreign ------Y million------US$ million---- %
A. Works (a) Civil works 578.90 517.67 1,096.57 68.11 60.90 129.01 47 (b) E&M 14.40 13.40 27.80 1.69 1.58 3.27 48
B. Equipment (a) Operation & Maintenance 2.73 24.59 27.32 0.32 2.89 3.21 90 (b) Laboratories 0.46 4.14 4.60 0.05 0.49 0.54 90 (c) Research/PMS 0.60 5.36 5.96 0.07 0.63 0.70 90 (d) Environment 0.03 0.28 0.31 0.00 0.03 0.03 90 (e) Other 0.38 3.44 3.82 0.04 0.40 0.44 90
C. Technical Assistance 1. Implementation Support /b 17.01 17.01 34.02 2.00 2.00 4.00 50 2. Institutional development /c (a) Overseas 0.26 4.04 4.30 0.03 0.48 0.51 94 (b) Local 0.51 0.34 0.85 0.06 0.04 0.10 40
Base Cost 615.28 590.26 1,205.54 72.37 69.44 141.81 49
Physical Contingencies /d 61.03 54.81 115.84 7.18 6.45 13.63 47 Price Contingencies /e 436.73 99.92 536.65 51.38 11.76 63.14 19
Land Acquisition and Resettlement /f 172.96 0.00 172.96 20.35 0.00 20.35 0
Taxes and duties /g 77.91 0.00 77.91 9.17 0.00 9.17 0
Total Cost 1.363.91 744.99 2.108.90 160.45 87.65 248.10 35
/a Base costs were estimated in yuan. The assumed exchange rate is 8.50 yuan per dollar. Figures are rounded. /b Comprises consultant services for construction supervision. /c Comprises consultant services for training. /d Physical contingencies were estimated at 10.00% of the cost of works and construction supervision. /_ Price contingencies assumed the following rates of inflation: 1994 1995 1996 1997 1998 1999 2000 2001 US$ 3.10% 6.90% 2.00% 1.60% 2.10% 2.40% 2.20% 2.50% Yuan 25.00% 14.00% 10.50% 8.50% 7.00% 6.50% 6.20% 6.20% /f Land acquisition and resettlement figures include contingencies. Iy Comprises import duties on equipment at a rate of 14.5%, value-added taxes on equipment at a rate of 17%, and taxes on works at a rate of 3.5%. The IBRD loan would not finance taxes and duties. -188- ANNEX 5
SHANGHA-HANGZHOUEXPRESSWAY FINANCINGPLAN FOR SHANGHAISECTIONL&
Base cost, including contingencies/b Financing (US$ million) IBRD Category (US$ million) IBRD MOC SM %
Civil works and E&M 205.94 50.91 10.82 144.21 25%
Equipment 5.76 2.21 -- 3.55 38%
Technical Assoistance Implementation support /b 6.13 6.13 -- 0.00 100% Institutional development /_ 0.75 0.75 -- 0.00 100%
Land acquisitionand resettlement /d 20.35 -- -- 20.35 0%
Taxes and duties Le 9.17 -- -- 9.17 0%
Total cost, including contingencies/f 248.10 6Q0.0 10.82 177.28 24%
/a Figures are rounded. /b Comprises consultantservices for constructionsupervision. /I Comprisesconsultant services for training. /d Land acquisitionand resettlement figures include contingencies. Je Comprisesimport duties on equipment at a rate of 14.5%, value-addedtaxes on equipment at a rate of 17%, and taxes on works at a rate of 3.5%. /f Contingencieswere calculated as described in the notes to the summary cost tables. -189- ANNEX5
SHANGHAI-HANGZHOUEXPRESSWAY COSr SUMMARYFOR ZHEJIANGSECTION /g
Local Foreign Total Local Foreign Total Foreign ------Y million------$US million -----
A. Works (a) Civil works 1,020.37 1,020.37 2,040.74 120.04 120.04 240.08 50 (b) E&M 23.16 92.65 115.81 2.72 10.90 13.62 80
B. Equipment (a) Operation & Maintenance 4.10 36.87 40.97 0.48 4.34 4.82 90 (b) Laboratories 0.62 5.62 6.24 0.07 0.66 0.73 90 (c) Research/Pavement Management System 0.16 1.42 1.58 0.02 0.17 0.19 90 (d) Environment 0.06 0.53 0.59 0.01 0.06 0.07 90 (e) Other 0.49 4.44 4.93 0.06 0.52 0.58 90
C. Technical Assistance 1. Implementation Support /b 29.15 29.15 58.30 3.43 3.43 6.86 50 2. Institutional Development /_ 4.36 6.96 11.32 0.51 0.82 1.33 81
Base Cost 1,082.46 1,198.00 2,280.47 127.35 140.94 268.29 53
Physical Contingencies /d 107.27 114.22 221.49 12.62 13.44 26.06 52 Price Contingencies /_ 698.91 192.40 891.31 82.22 22.63 104.85 22
Land Acquisition and If Resettlement 293.59 0.00 293.59 34.54 0.00 34.54 0
Taxes and duties /g 139.98 0.00 139.98 16.47 0.00 16.47 0
Total Cost 2,322.22 1,504.62 3,826.84 273.20 177.01 450.21 39
/a Base costs were estimated in yuan. The assumed exchange rate is 8.5 yuan per dollar. /b Comprises consultant services for construction supervision. /_ Comprises consultant services for training. /_ Physical contingencies were estimated at 10.00% of the cost of works and construction supervision. /_ Price contingencies assumed the following rates of inflation:
1994 1995 1996 1997 1998 1999 2000 2001 Foreign 3.10% 6.90% 2.00% 1.60% 2.10% 2.40% 2.20% 2.50% Domestic 25.00% 14.00% 10.50% 8.50% 7.00% 6.50% 6.20% 6.20%
/f Land acquisition and resettlement figures include contingencies. /g Comprises import duties on equipment at a rate of 20%, value-added taxes on equipment at a rate of 17%, and taxes on works at a rate of 3.5%. The IBRD loan would not finance taxes and duties. -190- ANNEX 5
SHNGHAi-HANGZHOUEXPRESSWAY FINANCINGPLAN FORZHEJIANG SECTIONLA
Base cost, including contingencies /b Financine (US$ million) IBRD Category (US$ million) IBRD MOC ZP %
Civil works and E&M 379.02 169.83 47.29 161.90 45%
Equipment 7.93 7.92 -- 0.01 100%
Technical Assistance Implementation Support /b 10.50 10.50 -- 0.00 100% Institutional development /_ 1.76 1.76 -- 0.00 100%
Land acquisition and resettlement /d 34.54 - - 34.54 0%
Taxes and duties /e 16.47 -- 16.47 0%
Total cost, including contingencies If 450.21 190.00 47.29 212.92 42%
/. Figures are rounded. lb Comprises consultant services for construction supervision. l_ Comprises consultant services for training. I_ Land acquisition and resettlement figures include price contingencies. It Comprises import duties on equipment at a rate of 20%, value-added taxes on equipment at a rate of 17%, and taxes on works at a rate of 3.5 %. The IBRD loan would not finance taxes and duties. /f Contingencies were calculated as described in the notes to the summary cost tables. -191- ANNEX 5
ROAD SAFETYPROGRAM COST SUMMARY/a
Local Foreign Total Local Foreign Total Foreign ------Y million------$USnillion---- %
A. Works
(a) Civil works 96.77 41.47 138.24 11.38 4.88 16.26 30 (b) E&M 0.00 0.00 0.00 0.00 0.00 0.00 80
B. Equipment 0.19 1.68 1.87 0.02 0.20 0.22 90
C. Technical Assistance
Implementation support /b 2.26 0.00 2.26 0.27 0.00 0.27 0 Institutional development /c 0.71 2.86 3.57 0.08 0.34 0.42 80
Base Cost 99.93 46.02 145.94 11.75 5.42 17.17 32
Physical Contingencies Id 9.90 4.15 14.05 1.17 0.49 1.65 30 Price Contingencies /e 56.19 6.36 62.55 6.61 0.75 7.36 10
Land Acquisition and Resettlement /f 31.56 0.00 31.56 3.71 0.00 3.71 0
Taxes and Duties /g 8.17 0.00 8.17 0.96 0.00 0.96 0
Total Cost 205.74 56.52 262.26 24.20 6.65 30.85 22
/a Base costs were estimated in yuan. The assumed exchange rate is 8.5 yuan per dollar. /k Comprises consultant services for construction supervision. /c Comprises consultant services for technical assistance and training. Id Physical contingencies were estimated at 10.00% of the cost of works and construction supervision. /e Price contingencies assumed the following rates of inflation:
1994 1995 1996 1997 1998 1999 2000 2001
Foreign 3.10% 6.90% 2.00% 1.60% 2.10% 2.40% 2.20% 2.50% Domestic 25.00% 14.00% 10.50% 8.50% 7.00% 6.50% 6.20% 6.20%
/f Land acquisition and resettlement figures include contingencies. /g Comprises import duties on equipment at a rate of 20%, value-added taxes on equipment at a rate of 17%, and taxes on works at a rate of 3.5%. The IBRD loan would not finance taxes and duties. -192- ANNEX 5
ROAD SAFETY PROGRAM FINANCING PLAN /a
Base cost, including contingencies /_ Financing (US$ million) IBRD Category (US$ million) IBRD MOC ZPG %
Civil works 24.99 8.81 --- 16.18 35%
Equipment 0.25 0.25 --- 0.00 100%
Technical Assistance Implementation support /b 0.44 0.44 --- 0.00 100% Institutional development /c 0.50 0.50 --- 0.00 100%
Land acquisition and resettlement /d 3.71 ------3.71 0%
Taxes and duties /e 0.96 -- -- 0.96 0%
Total cost, including contingencies /f 30.85 10.00 0.00 20.85 32%
/a All figures are rounded. /b Comprisesconsultant services for constructionsupervision. /_ Comprisesconsultant services for technical assistance and training. /d Land acquisitionand resettlementfigures include price contingencies. /e Comprises import duties on equipmentat a rate of 20%, value-addedtaxes on equipment at a rate of 17%, and taxes on works at a rate of 3.5%. The IBRD loan would not finance taxes and duties. /f Contingencieswere calculatedas described in the notes to the summarycost tables. - 193 - ANNEX6
PROJECT IMPLEMENTATION
1. This annex sets forth the major actions required for implementationof the project and description of the key agencies for implementation. For the Shanghai- HangzhouExpressway component,the annex describes: implementingagencies (pages 1- 3); implementationschedule (page 4); constructionsupervision arrangements(page 3); and procurement processes (pages 5-6). For the Road Safety Program component, the annex addresses organizationalarrangements (page 7) and implementationschedule (page 8).
2. The annex also includesa schedulefor resettlementmonitoring (page 9) and a listing of project performance monitoring indicators to be used during project implementation(pages 9-13).
Implementationof the Shanghai-HangzhouExpressway Component
3. Implementing Agencies. The Shanghaisection of the Shanghai-Hangzhou Expressway (hereafter, "the Expressway") would be implemented by the Shanghai Shanghai-Hangzhou Expressway Construction Executive Commission ("Hu Hang" Expressway Commission or HHEC). Six divisions would be established in HHEC for project implementation: chief engineer, project management (comprising two units responsible for quality, progress, and investment for the duration of the project), preliminary phase (project formulation, planning design, and land acquisition and resettlement), financial management,material resources (coordinationwith contractors), and public affairs.
4. The HHEC reports directly to the Shanghai Highway Management Departmentand to the ShanghaiMunicipal Engineering Administration Bureau (SMEAB): these planning and financial staff of these agencies were directly involved in the preliminaryphases of project development. The staff of HHEC were drawn from these municipal agenciesand from technical institutionsin Shanghai. The HHEC was formally establishedby the end of May 1994, and is expectedto achieve its total staff complement of 45 by July 1995.
5. The Zhejiang section of the Expressway would be implemented by the Zhejiang Provincial Expressway ConstructionExecutive Commission (ZPEC), the same - 194 - ANNEX 6
agency that is implementingthe Bank-financedZhejiang Provincial Highway Project (with construction of the Hangzhou-Ningbo Expressway as the primary infrastructure component). Implementationof the ZhejiangProvincial Highway Project (hereafter, "the ongoing project") is currently satisfactory, but in 1994 there were implementation difficultiesresulting from serious constructionquality problemsand non-compliancewith the required submission of a plan for monitoring the socio-economic impact of resettlement.
6. A technical committee was convened by Zhejiang Province to address the project performance and quality problems for the ongoing project. The committee determinedthat a major cause of qualityproblems was ZPEC's decisionin September1993 to sign contracts with local governmentsof six cities and counties along the alignment, delegating some of its authority and responsibility for construction. The resulting supervision organization has been found weak and ineffective due to lack of competent technical personnel, and the progress and performance of some civil works contracts has suffered, with poor quality that is particularly evident on stone/soil embankments. The committee also concluded that the contractor's internal quality control system was not working.
7. The recommendations of the technical committee related to contractor performance included that: Zhejiangwithhold payments until rejected work is corrected; the resident engineer's position to be filled immediately with a more qualified highway engineer; contractors strengthen their internal quality control system and replace staff; contractors intervene to stop substandard works; contractors build up equipment and manpower at the work sites to accelerate progress of remedial works; and performance of quality inspectors should be improved. A review of performance for the ongoing project also revealed that a large number of local staff (contractors' staff) did not have previous experiencein expresswayconstruction.
8. Zhejiang authorities have, in response to these findings, taken steps to improve construction quality. At the project level, Zhejiang authorities have asked the managementof contractingfirms to strengthenstaffing and increase equipment and have strengthenedproject monitoringcovering number of staff per contract (plannedand actual, including senior staff), pace of works, use of materials, and use of equipment. Zhejiang authorities have also addressed the supervisionweaknesses with contracting firms' senior management,central governmentauthorities, and the governor in ZhejiangProvince. For the Zhejiang section of the Shanghai-ZhejiangHighway Project, Zhejiang Province have proposed to recruit experts from domestic supervision firms to strengthen the base of related supervision experience.
9. The project managementarrangements for the Zhejiangexpressway section of the Shanghai-ZhejiangHighway Project include about 100 local staff, including20 to be based in Hangzhou and 80 to be based in Jiaxing. The Zhejiang supervision team is - 195 - ANNEX6 currently staffed with 20 personnel, who have been involvedin supervisionof the Pengbu- Wengmei (advance contracting) section. A main office for supervision of the Zhejiang expressway section would be established in Jiaxing (northern Zhejiang). A core group of seven engineers who have been actively involved in project preparation would also work on supervision of the Zhejiangexpressway section. The staff in Hangzhou would, inter alia, be responsible for civil works engineering, accounting, and land acquisition and resettlement. Qualified local supervision companies are being retained to provide field supervision staff as needed during construction.
10. A Joint Supervision Team (JST) will be formed for supervision of expressway construction in both Shanghai and Zhejiang. The team would consist of international construction supervision consultants, technical personnel from Shanghai Municipalityand ZhejiangProvince, and experts from domestic technical institutionsand constructionsupervision companies.
11. The constructionsupervision team in Shanghaiwould share office space with HHEC but maintain separate operations. The Shanghai supervision organization twelve staff, including two chief engineers, one for constructionand one for supervision. The supervision team in Shanghai would be drawn from staff of the highway division in SMEAB, Tongxi University, Shanghai Municipal College, and Shanghia Municipal Research Institute. SM intends to establish a constructionsupervision company, subject to approval of MOC, that would become involved in project implementation. The company is already functioning, and has been authorized by SMEAB to supervise constructionof a highway from Shanghaito Nanjing.
12. Field supervision in the Shanghai section will be carried out in groups headed by four resident engineers; a chief engineer from SMEAB will serve as chief supervision engineer. Shanghai's construction supervision department comprises forty staff: twelve office staff, plus four resident teams in the field (three eight-person teams for civil works, and one four-personteam for traffic engineering). Additionalstaff would work on quality control and other specialized tasks (eg. laboratory tasks). A pre- construction domestic training tour and lectures are planned for local staff to gain experience in supervision.
13. Implementation Schedule. The following chart illustrates the phasing of major activities for the Shanghai-HangzhouExpressway component: Implementation Schedule for Shanghai-Hangzhou Expressway
1993 1994 19951 1996 1997 1998 1999 2000 2001
Songiiang-Fengiing Section (Shanghai) T I I r T r Land acquisition and resettlement Soft soil test section - C1.2F1J-
Expressway construction and ancillary works --
Wengmei-Fengiinn Section (Zhejiang) Land acquisition and resettlement EV17K I Expressway and access road construction
Pengbu-Wengmei Section (Zhejiang) ,1177 T_, Land acquisition and resettlement Expressway construction T_~~~~~~~~~~~~~~~~~0 Construction supervision (Shanghai and Zhejiang) I i
SupplyandinstallationofE&Mequipment (Shanghai and Zhejiang)
Equipment (Shanghai and Zhejiang) [ I
Laboratory, research, and environmental protection . .4.
Expressway operation and maintenance I .....
Training (Shanghai and Zhejiang) . Formal supervision training
On-the-job supervision training |111111 1+1j Other staff training . >
Planning/Design/Document Preparation/Pre-qualification/Terms of Reference
r ____ ]Bidding/Selection/Award : :~~] Execution/Construction/Supervision/Delivery I ~~Monitoring El ~~Training - 197 - ANNEX6
14. Procurement Processes. Both Shanghai and Zhejiang began planning and preparing for procurement of goods and works for this project in 1993. The major civil works for the Shanghai-Hangzhou Expressway would be procured under International Competitive Bidding, and smaller works contracts for the expressway section in Zhejiang and for the Road Safety Program would be procured under Local Competitive Bidding.
Schedulefor Preparationof ICB Contracts
Zhejiang Shanghai
Issue general procurementnotice ...... February 16, 1993 . February 16, 1993 SubmitPQ documentsto Bank ...... July 24 ...... July 24 Submit PQ notice to Bank ...... July 24 ...... July 24 AdvertisePQ ...... October 25 ...... September6 Bank's review of PQ documents ...... September 17 ..... September6 Revise and issue PQ documents ...... October 25 ...... September15 Last date to receive PQ submissions ...... December25 ..... November 15 PQ documentevaluation report/MOC review . . . January 25, 1994 . . . January 20, 1994 Bank review PQ evaluationreport ...... April 15 ...... February 15 Finalize PQ report and notify contractors ..... July 11 ...... March 15 Start preparing bid documents ...... April 1, 1993 ..... April 1, 1993 Completepreliminary engineering ...... May 31 ...... May 31 Internationaldesign review ...... July 31 ...... July 31 Complete MOC review ...... September15 ..... May 31, 1994 Completebid documents ...... October 27 ...... November25, 1993 Consultantreview of bid documents ...... December 18 ..... December 18 Submit bid documentsto Bank ...... December 31 ..... January 31, 1994 Bank review of bid documents ...... February 9, 1994 ... October 12 Finalize bid documents and issue ...... July 15 ...... December9 Site visit, bidders conference ...... August 16 ...... January 19, 1995 Respond to bidders queries ...... September23 ..... March 7 Bid deadline and opening ...... October 15 ...... April 28 Prepare bid evaluation report ...... October 17 ...... June 10 Governmentreview (MOC) ...... December 10 ..... June 15 Bank review bid evaluationreport ...... May 11, 1995 ..... July 15 Notify successfulbidders ...... July 1 ...... July 16 Negotiateand sign contracts ...... July 10 ...... August 10 Start of construction ...... September 10 ..... September 10 - 198 - ANNEX
Schedule of SupervisionConsultants (Managed iointly by Shanghaiand Zheiiang)
Prepare shortlist of consultantsand TOR ...... December21, 1993 Bank review of shortlist and TOR ..... J.....anuary 6, 1994 Issue request for proposals ...... January 27 Receive proposals ...... April 7 Evaluate proposals ...... August 15 Bank review evaluation report ...... August 19 Negotiate and draft agreements ...... July 7, 1995 Bank review of draft agreements ...... July 19 Sign agreements ...... July 25 Training of domesticsupervision team staff ... . August 5 Start work on site ...... August 25
Schedulefor Preparationof LCB Contracts for Pengbu-Wengmeisection (ZhejiangProvince)
Submit bid documentsto Bank ...... August 9, 1993 Bank review of bid documents ...... September10 Finalize bid documentsand issue ...... September 15 Bid deadline and opening ...... October 30 Prepare bid evaluationreport ...... November 30 Bank review bid evaluationreport ...... January 5, 1994 Negotiate and sign contracts ...... January 12 Start of construction ...... February 20 - 199 - ANNEX 6
Implementationof the Road Safety Program Component
15. The following charts illustrate the organizational arrangements and the phasing of major activities for the Road Safety Program component:
ProposedOrganization for the Road Safety Program $
Zhejiang Provincial Highway Administration Bureau
World Bank Road Safety Program Working (Main) Office - Jiaxing (3) Central DepartmenS
F ; ~~~~~~~~~~Financial Supervision Enineering |Affairs (4) (2) (2)
County-level Departments in Haining, Tongshan, Jiaxing, and Jiashan (typical staff size: 7-8)
Supervision Engineering nanc Affairs Land Acquisition and Resettlement
*Staff numbers are indicated in parentheses. Inplementation Schedule for the Road Safety Program
1993 1994 1995 1996 1997 1998 1999 2000 2001
Land acquisition and resettlement S1 \\\j:; i Civilworks1 Tl} A-i section B-1 section C-1 section
A-2 section 1t B-2 section C-2 sectionI10
A-3 sectionI Ir
B-3 section I
C-3 section u
Construction suervision
Road Safety technical assistance, training. I i and procurement of equipment 7 L 1!
Planning/Design/Document Preparation/Pre-qualirication/Terms of Reference Bidding/Selection/Award > 1EIZZi~ Execution/Construction/Supervision/Delivery Monitoring Training - 201 - ANNEX6
Project Monitoring and Reporting
16. Regularreporting on performanceagainst project objectives will be achieved through the use of resettlement monitoring reports, progress reports covering all project activities, audit reports, and specific monitoringindicators.
17. Resettlement Monitoring (monitoring against the agreed RAPs) will be conductedby the project implementingagencies and by independent (external) agencies. The monitoring reports will be submittedto the Bank as follows:
Independent Intemal (Extemal) Shanghai-HangzhouExpressway Shanghai expressway section July 15, 1995 September 1, 1995 October 1, 1995 March 1, 1996 January 1, 1996 September 1, 1996 April 1, 1996 July 1, 1996
Zhejiang expressway section June 15, 1995 July 15, 1995 September 15, 1995 December 15, 1995 December 15, 1995 July 15, 1996 March 15, 1996 June 15, 1996 September 15, 1996
Road Safety Program June 15, 1995 July 15, 1995 September 15, 1995 December 15, 1995 December 15, 1995 July 15, 1996 March 15, 1996 June 15, 1996 September 15, 1996 - 202 - ANNEX 6
18. The specific monitoringindicators for the project include:
A. Indicators for Road Infrastructure
1. Efficient Service Delivery a. Routine MaintenancePlus Agency OperationsCost Divided by lane km As a percent of total road budget
b. Road User Cost per Vehicle Km (cars)
2. Service Quality a.Average Travel Speed (km per hour)
From Shanghaito Hangzhou Via NR 320 Via Provincial Road 01 Via Shanghai-HangzhouExpressway
From Hangzhou to Shanghai Via NR 320 Via Provincial Road 01 Via Shanghai-HangzhouExpressway
From Fengjing to Songjiang Via NR 320 Via Shanghai-HangzhouExpressway
From Hangzhouto Jiaxing Via NR 320 Via other provincial/localroads Via Shanghai-HangzhouExpressway
b. Volume/capacityratio of roads (%)
c. Proportion of roads with volume/capacityratio < 80% - 203 - ANNEX
A. Indicators for Road Infrastructure (continued)
3. Safety a.Injuries and fatalities Per vehicle Per capita Per vehicle-km
b. Pedestrian and non-motorizeduser fatalities as of percent of total fatalities.
4. Accessibility a. Road km/sq km Urban areas (Shanghai, Hangzhou) Non-urbanareas (SongjiangCounty, Zhejiang Province)
5. Financial Sustainability a. Lane km/GOVAI b. Road budget/GOVAI(%)
6. Environment Quality
Fuel Consumptionper Vehicle Km - 204 - ANNEX 6
A. Indicators for Road Infrastructure (continued)
7. Operating Efficiency a. Financial
Road traffic-relatedrevenues returned to the Municipal/Provincial Highway agencies (%).
Fixed plus variable user charge revenue as a percent of total road expenditure:
Including taxes Net of taxes
b. Labor
Cost per lane km constructed Cost per lane maintained Proportion of contract value procured by: Competitivebidding Limited bidding or force account
c. Capital Assets
Intensity of use (vehicle km per lane km per year)
Roads in "good" condition (% of total) Roads in "fair" condition(% of total) Roads in "poor" condition (% of total)
d. Management
Administrativeexpenses/total budget Annual maintenanceexpenditure Routine Periodic as a % of replacementvalue - 205 - ANNEX6
B. Indicators for Road Freight Services
1. Service Quality
Average vehicle speed (km/hour) Urban (Shanghai, Hangzhou) Inter-urban (Shanghai to Fengjing Shanghai to Hangzhou Hangzhou to Jiaxing)
2. Safety
Accident rate per million vehicle-km Fatalities Other
3. Accessibility
Road network density (km/km) Freight vehicle fleet capacity
4. Environment a. Fuel consumption (gals/ton/km) Leaded gasoline Unleaded gasoline Diesel
b. Unit emissions Co, HC, and No. (grams per vehicle-km) - 206 - ANNEX6
B. Indicators for Road Freight Services (continued)
5. Operating Efficiency a. Capital
Vehicle utilization km per vehicle p.a. ton-km per vehicle p.a. empty km/total km
b. Overall
Vehicle operatingcosts by representativevehicle type/GVM (Yuan per km)
Road-relatedtaxes and charges (Yuan per km) as a percent of operatingcosts
Vehicle operating cost less road-relatedtaxes and charges by representativevehicle type, GVM short haul/long haul (Yuan per km) - 207 - ANNEX 7
SUPERVISION MISSION PLAN
Timing Main Activities Skill Reguirements Staff-weeks
10/95 Proiect Launch Review of all key procedures for interactionsbetween Highway Engineering 5 the Bank and project executingagencies, including Road Safetuey procurement, disbursement,and project reporting Economic requirements. Overall project implementation Training schedule will be reviewed, includingearly stage Procurement activities for environmentalprotection and Disbursement resettlement. Resettlement
Special emphasis on: -Resettlementand environmentalmeasures and monitoring. -Road Safety Program - subprojectpreparation and monitoring systems. -Training proposals for 1996 and 1997. -Proposals for expressway management.
3/96 General Supervision (i) review progress of each project component Task Managing 4 identify pending issues and agree on follow-up Highway Engineering actions; Procurement Resettlent (ii) reach agreementon resettlementmonitoring arrangements; and
(iii) review proposals for early stage equipment procurement.
Special emphasis on: -Procurementof laboratory, research, environmental, and road safety-relatedequipment. -Resettlementmonitoring reports. -Road Safety Program technical assistance and training. - 208 - ANNEX 7 Timing Main Activities Skill Requirements Staff-weeks
10/96 Major Supervision In-depthreview of implementationstatus with Task Managing 4 particular emphasis on: Highway Engineering (i) contractor's performance; Road Safety Procurement (ii) effectivenessof supervision; Environment Economics (iii) adequacyof environmentalprotection measures;
(iv) review proposal for equipmentprocurement for the operation and maintenanceof the highway network; and
(v) review bidding documentsfor E&M supply and installationcontract for the Expressway.
Special emphasis on: -Road Safety Program - mid-termreview for civil works. -Operatingresults - Pengbu-Wengmei Section. -Training proposals for 1997 and 1998. -Procurementof expressway operationsand maintenanceequipment.
3/97 General Supervision (i) review overall progress for each component and Task Managing 2 identify pending issues and agree on follow-up Highway Engineering actions; and Procurement
(ii) review proposal for procurement of equipmentfor operation and maintenanceof Expressway.
Special emphasis on: -Environmentalprotection measures.
10/97 Maor SuDervision/Mid-TermReview In-depth review of implementationstatus with Task Managing 5 particular emphasis on: Highway Engineering (i) contractor's performance; Training Environment (ii) effectivenessof supervision; Resettlement - 209 - ANNEX 7
Timing Main Activities Skill Requirements Staff-weeks
(iii) adequacyof environmentalprotection measures; and
(iv) staff training programs.
Special emphasis on: -Mid-term review of expresswayconstruction, quality and supervision. -Mid-termreview of training. -Training proposals for 1998 and 1999. -Electricaland MechanicalWorks: procurement, supervisionand supervision training.
3/98 General Supervision Reviewing overall progress for each componentand Task Managing 2 identifyingpending issues and agreeing on follow up Highway Engineering actions.
Special emphasis on: -Review of project resettlementactions and final monitoringreport.
10/98 Major Supervision In-depth review of implementationstatus with Task Managing 4 particular Highway Engineering emphasis on: Road Safety (i) contractor's performance; Environment
(ii) effectivenessof supervision;
(iii) adequacyof environmentalprotection measures; and
(iv) staff training program.
Special emphasis on: -Trainingproposals for 1999 and 2000. -Progress on E&M contracts. -Toll arrangementsfor Shanghai-Hangzhou Expressway. - 210 - ANNEX 7 Timing Main Activities Skill Requirements Staff-weeks
3/2000 General Supervision Reviewing overall progress for each component and Task Managing 2 identifying pending issues and agreeing on follow up Highway Engineering actions.
Special emphasis on:
10/2000 Inplementation Completion Report Mission A consolidated review of project implementation. Task Managing 4 Highway Engineering Economics Environment Resettlement
Implementation Review Preparation of Project Implementation Completion Report.
Txota 38 - 211 - ANNEX 8
SELECTED DOCUMENTS AVAILABLE IN THE PROJECT FILE
Economic and Technical Studies
1. Shanghai-HangzhouExpressway Engineering Feasibility Study Report, Zhejiang ProvincialDesign Instituteof Communicationsand ShanghaiMunicipal Engineering Design Institute, November, 1992.
2. Shanghai-Hangzhou Expressway Engineering Feasibility Study Report - SupplementaryInformation and Tablesfor ShanghaiSection, Zhejiang Provincial Traffic Design Institute of Communicationsand ShanghaiMunicipal Engineering Design Institute, October, 1992.
3. Shanghai-Hangzhou Expressway Engineering Feasibility Study Report - SupplementaryInformation and Tablesfor Zhejiang Section, Zhejiang Provincial Traffic Design Institute of Communications,October, 1993.
4. Report of Engineering Feasibility Study of Shanghai-HangzhouExpressway - SupplementaryInfonnation and Tablesfor ShanghaiSection, Zhejiang Provincial Traffic Design Institute of Communicationsand Shanghai Municipal Engineering Design Institute, October, 1992.
5. EngineeringDesign and Cost Estimationfor the Road Safety Program - National Road 320 in Zhejiang Province, Zhejiang Provincial Highway Administration Bureau - Jiaxing MunicipalDivision, October 18, 1993.
6. Mission Report No. I - Mission for the Review of Engineering Design and Preparation of Bidding Documents, Shanghai-Zhejiang Expressway Project, NEDECO Netherlands EngineeringConsultants BV, August, 1993.
7. InceptionReport - Missionfor the Review of EngineeringDesign and Preparation of Bidding Documents, Shanghai-ZhejiangExpressway Project, Messrs. Bresser, Spaan, and Verheijen, Haskoning Royal Dutch Consulting Engineers and Architects, July 17, 1993. - 212 - ANNEX 8
Road Safetv
8. Detailed Report on Road Safety Programprepared during Pre-AppraisalMission, Mr. C. Robson, Ross SilcockPartnership, July 1993.
9. Review of Road Safety in Zhejiang: The Shanghai-HangzhouCorridor -prepared during February/March1993 World Bank Mission to Hangzhou, China, Mr. C. Robson, Ross Silcock Partnership, March 1993.
10. Guidelinesfor the Safety Audit of Highways, The Institution of Highways and Transportation(London), September, 1990.
11. CHINA: Road Safety Project (SichuanPilot Study) FinalReport, Research Institute of Highways (Ministry of Communications) and Ross Silcock Partnership, December, 1987.
12. Costsof Road Accidentsin the People's Republicof China - TechnicalNote Number 3, China Road Safety Project (Sichuan Pilot Study), Ross Silcock Partnership, December, 1987.
Environment
12. CHINA: Shanghai-Zhejiang Highway Project - Environmental Assessment Summary, ShanghaiAcademy of EnvironmentalSciences and Zhejiang Provincial Research Institute of EnvironmentProtection, November 2, 1993.
13. EnvironmentAction Planfor Zhejiang Section of Shanghai-HangzhouExpressway Project, ZhejiangProvincial Expressway Project Executive Commission, January 1994.
14. Shanghai-HangzhouExpressway, Shanghai Section - EnvironmentalAction Plan, ShanghaiAcademy of EnvironmentalSciences, January 1994.
15. Environmental Impact Assessmentfor Zhejiang Section (Hangzhou-Fengjing)of Shanghai-Hangzhou Expressway, Zhejiang Provincial Research Institute of Environment Protection, October 1992.
16. Shanghai-HangzhouExpressway Shanghai Section Project, EnvironmentalImpact AssessmentReport (Vols. I and 11), ShanghaiResearch Institute of Environmental Protection, February, 1993.
17. Illustrationson SeveralIssues ofZhejiang's Partin Shanghai-HangzhouExpressway Project Environment Assessment Report, Environmental Protection Science Research Institute of ZhejiangProvince, October 1993. - 213 - ANNEX 8
18. Environmental Impact Assessment of Road Upgrading Project on No. 320 National-Road (Jiaxing section) with the World Bank Loan, Environmental Protection Institute of Zhejiang Province, March 1994.
19. Supplementary Illustration of the Environmental Impact Assessment and the ImplementationPlan Projecton the No. 320 NationalRoad (JiaxingRoad Section), Highway Administrative Bureau of Transportation of Zhejiang Provincial CommunicationDepartment. ZhejiangEnvironmental Protection Institute, August 1994.
Land Acquisition and Resettlement
20. ResettlementAction Planfor Shanghai-HangzhouExpressway (ShanghaiSection), Shanghai Municipal Engineering AdministrationBureau and Shanghai-Hangzhou Expressway EngineeringConstruction Executive Commission,June 19, 1995.
21. Surveys on Land Acquisitionand Resettlementand Social Economy with regard to Shanghai-Hangzhou Expressway-Shanghai Section, Supervision Group of Shanghai-Hangzhou Expressway (Shanghai Section) with regard to Land Acquisition, Structure Removal and Resettlement, Shanghai Federation of Social Sciences Societies, November 1994.
22. Resettlement Action Plan for Shanghai-HangzhouExpressway Project (Zhejiang Section) - Final Report, Zhejiang Provincial Expressway Project Executive Commission,June 19, 1995.
23. Shanghai-ZhejiangHighway Project (Zhejiang Section): Land Acquisidon and ResettlementAction Planfor Traffic Safety Facility of National Road 320 (Jiaxing Section) - Road Safety Program, Zhejiang Provincial Highway Administration Bureau, June 19, 1995.
24. Investigation Report for the Social Economy of Shanghai-HangzhouExpressway (ZhejiangSection), Hangzhou University City and Countryside Planning Design Institute and Zhejiang Provincial Expressway Project Executive Commission, November 22, 1994.
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---- +RAILROADS | z * | RAILROADS\\ : ~~~l- t / 95 I S H A N G H A I ROADS GRANDCANAL /
RIVERS/CANALS XXnqio 0 erqoo PROVINCEBOUNDARIES \
10 20 30 40 o - S 1 eein
KILOMETERS
T iO Deqringn
not this r= n d _ v ewBQdo>/~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~ipy anhPYwort e parnt of) jiudg mentono therrlegay } i - j \C¢~~~~~~~~~~~~~~~ \ o~~~~ny \ V Oionjion Hongzhou-Ningbo or any endorsement -J ,2 Interchonge Eupressn.oy ' or acceptance of such- FUWiAN Ayu-hNmgi bouNies.
JULY1 995
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