PCR: People's Republic of China: Yichang–Wanzhou Railway Project

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PCR: People's Republic of China: Yichang–Wanzhou Railway Project Completion Report Project Number: 35339 Loan Number: 2051 August 2012 People’s Republic of China: Yichang–Wanzhou Railway Project CURRENCY EQUIVALENTS Currency Unit – yuan (CNY) At Appraisal At Project Completion (18 November 2003) (22 December 2010) CNY1.00 = $0.1208 $0.1501 $1.00 = CNY8.2770 CNY6.6630 ABBREVIATIONS ADB – Asian Development Bank EIA – environmental impact assessment EIRR – economic internal rate of return EMP – environmental management plan FIRR – financial internal rate of return FSDI – Fourth Survey and Design Institute of China Railway FCTIC – Foreign Capital and Technical Import Center MOR – Ministry of Railways PRC – People’s Republic of China SEPP – soil erosion protection plan TA – technical assistance WACC – weighted average cost of capital YWR – Yichang–Wanzhou Railway YWRCH – Yichang–Wanzhou Railway Construction Headquarters WEIGHTS AND MEASURES km – kilometer m2 – square meter m3 – cubic meter mu – a Chinese unit of measurement (1 mu = 666.67 m2) NOTES (i) In this report, "$" refers to US dollars, unless otherwise stated. Vice-President S. Groff, Operations 2 Director General R. Wihtol, East Asia Department (EARD) Director H. Sharif, People’s Republic of China Resident Mission, EARD Team leader F. Wang, Senior Project Officer (Financial Management), EARD Team members W. Zhu, Senior Project Officer (Resettlement), EARD Z. Niu, Senior Project Officer (Environment), EARD Y. Gao, Project Analyst, EARD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page BASIC DATA i I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 3 C. Project Costs 5 D. Disbursements 5 E. Project Schedule 6 F. Implementation Arrangements 6 G. Conditions and Covenants 7 H. Related Technical Assistance 7 I. Consultant Recruitment and Procurement 8 J. Performance of Consultants, Contractors, and Suppliers 8 K. Performance of the Borrower and the Executing Agency 9 L. Performance of the Asian Development Bank 9 III. EVALUATION OF PERFORMANCE 9 A. Relevance 9 B. Effectiveness in Achieving Outcome 10 C. Efficiency in Achieving Outcome and Outputs 11 D. Preliminary Assessment of Sustainability 12 E. Impact 12 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14 A. Overall Assessment 14 B. Lessons 14 C. Recommendations 15 APPENDIXES 1. Project Framework 16 2. Chronology of Major Events 20 3. Project Cost and Financing Plan 21 4. Projected and Actual Contract Awards and Disbursements 22 5. Appraisal and Actual Implementation Schedule 23 6. Organization Chart 24 7. Compliance with Loan Covenants 25 8. Contract Packages Financed by the Asian Development Bank 34 9. Technical Assistance Completion Report for Strengthening Involuntary Resettlement Practices 37 10. Technical Assistance Completion Report for Ensuring Safeguard Practices 39 11. Economic Reevaluation 41 12. Financial Reevaluation 47 13. Social Impact and Poverty Reduction in the Project Area 50 14. Land Acquisition and Resettlement 57 15. Environmental Impact Analysis 63 BASIC DATA A. Loan Identification 1. Country People’s Republic of China 2. Loan Number 2051 3. Project Title Yichang–Wanzhou Railway Project 4. Borrower People’s Republic of China 5. Executing Agency Ministry of Railways 6. Amount of Loan $500 million 7. Project Completion Report Number PCR: PRC 1332 B. Loan Data 1. Appraisal – Date Started 17 July 2003 – Date Completed 11 August 2003 2. Loan Negotiations – Date Started 5 November 2003 – Date Completed 8 November 2003 3. Date of Board Approval 15 December 2003 4. Date of Loan Agreement 27 May 2004 5. Date of Loan Effectiveness – In Loan Agreement 25 August 2004 – Actual 26 July 2004 – Number of Extensions 0 6. Closing Date – In Loan Agreement 30 June 2010 – Actual 23 December 2011 – Number of Extensions 2 7. Terms of Loan – Interest Rate London interbank offered rate (LIBOR) based – Maturity 26 years – Grace Period 6 years 8. Terms of Relending – Interest Rate London interbank offered rate (LIBOR) based – Maturity 26 years – Grace Period 6 years – Second-Step Borrower Ministry of Railways ii 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 26 July 2004 23 December 2011 89 months Effective Date Original Closing Date Time Interval 26 July 2004 30 June 2010 71 months b. Amount ($) Original Last Revised Amount Net Amount Amount Category Allocation Allocation Canceled Available Disbursed Civil works 349,000,000 382,077,567 0 382,077,567 382,077,567 Equipment 77,180,000 27,012,740 0 27,012,740 27,012,740 Materials 45,820,000 87,936,233 0 87,936,233 87,936,233 Consulting services and training 1,300,000 473,460 0 473,460 473,460 Front-end fee 2,500,000 2,500,000 0 2,500,000 2,500,000 Unallocated 24,200,000 0 0 0 0 Total 500,000,000 500,000,000 0 500,000,000 500,000,000 Source: Asian Development Bank. C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 1,085.40 573.76 Local Currency Cost 1,278.10 3,551.32 Total 2,363.50 4,125.09 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 1,693.20 3,334.90 ADB Financed 497.50 497.50 Total 2,190.70 3,832.40 IDC Costs Borrower Financed 170.30 290.19 ADB Financed 2.50 2.50 Total 172.80 292.69 ADB = Asian Development Bank, IDC = interest during construction and commitment charge. Sources: Asian Development Bank. iii 3. Cost Breakdown by Project Component ($ million) Appraisal Estimate Actual Foreign Local Total Foreign Local Total Cost Component Exchange Currency Cost Exchange Currency A. Base Costs 1. Civil Works 787.20 849.10 1,636.30 443.73 2,510.03 2,953.76 2. Railway Materials 45.80 34.40 80.20 93.39 118.57 211.96 3. Signaling, Communications, 17.80 21.30 39.10 0.00 94.71 94.71 MIS 4. Electric Power and 17.50 58.70 76.20 0.00 182.36 182.36 Electrification 5. Operational, Safety, and 41.00 12.20 53.20 33.56 34.74 68.30 Maintenance Equipment 6. Land Acquisition and 0.00 42.00 42.00 0.00 95.67 95.67 Resettlement 7. Environmental Protection, 0.90 3.00 3.90 0.00 18.06 18.06 Mitigation, and Monitoring 8. Administration, Consulting 1.30 32.00 33.30 0.58 207.00 207.58 Services, and Miscellaneous Cost Subtotal (A) 911.50 1,052.70 1,964.20 571.26 3,261.14 3,832.40 B. Contingencies 1. Physical 77.30 79.60 156.90 0.00 0.00 0.00 2. Price Escalation 32.30 37.30 69.60 0.00 0.00 0.00 Subtotal (B) 109.60 116.90 226.50 0.00 0.00 0.00 C. Front-End Fee 2.50 0.00 2.50 2.50 0.00 2.50 D. Interest During 61.80 108.50 170.30 0.00 290.19 290.19 Construction Total 1,085.40 1,278.10 2,363.50 573.76 3,551.32 4,125.09 MIS = transport management information system. Sources: Asian Development Bank and the Ministry of Railways. 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants Jul 2004 Mar 2008 Completion of Engineering Designs Aug 2003 Aug 2003 Civil Works Contract Date of Award Aug 2004 Sep 2004 Completion of Work Dec 2008 Oct 2010 Equipment and Supplies Dates First Procurement Jun 2006 Jan 2005 Last Procurement Jun 2009 Jul 2007 Completion of Equipment Installation Jun 2009 Oct 2010 Start of Operations Jan 2010 Dec 2010 Sources: Asian Development Bank and the Ministry of Railways. iv 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From 1 Dec 2003 to 31 Mar 2004 Highly Satisfactory Satisfactory From 1 Apr 2004 to 31 Aug 2005 Satisfactory Satisfactory From 1 Sep 2005 to 30 Sep 2007 Satisfactory Highly Satisfactory From 1 Oct 2007 to 31 Dec 2011 Satisfactory Satisfactory Source: Asian Development Bank. D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Membersa Fact-finding 19 Nov–6 Dec 2002 5 44 a, b, c, d, e Appraisal 17 Jul–11 Aug 2003 7 66 a, b, d, e, f, g Loan Negotiation Mission 5–8 Nov 2003 3 9 a, e, g Inception Mission 7–13 Dec 2004 2 12 h, i Review Mission 1 6–11 Nov 2005 3 15 h, i, d Review Mission 2 28 Nov–1 Dec 2006 3 4 h, i, d Midterm Review Mission 26–29 Nov 2007 4 8 h, i, j Review Mission 3 7–14 Oct 2008 4 28 i, k, l, m Review Mission 4 9–12 Nov 2009 3 9 i, k, l Review Mission 5 1–3 Nov 2010 3 6 i, k, l Project Completion Review 21–29 Mar 2011 4 30 i, k, l, m aa = financial specialist, b = resettlement specialist, c = transport engineer, d = environmental specialist or consultant, e = project specialist, f = program officer, g = counsel, h = transport specialist, i = project analyst, j = project management officer, k = financial management officer, l = resettlement officer, m = environment officer. Source: Asian Development Bank. I. PROJECT DESCRIPTION 1. Railways play an important role in transportation in the People’s Republic of China (PRC) due to the large land area and population size. The Government of the PRC has been increasing the railway transport capacity to meet economic and social development needs.
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