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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 25590-CHA Public Disclosure Authorized PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF US$200 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR A Public Disclosure Authorized WUHAN URBAN TRANSPORT PROJECT February 12,2004 Transport Sector Unit East Asia and Pacific Region I This document has a restricted distribution and may be used by recipients only in the performance of their 1 official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective January 2004) Currency Unit = RMB Yuan RMB1.00 = US$0.12 US$l.OO = RMB8.28 FISCAL YEAR January 1 -- December 31 ABBREVIATIONS AND ACRONYMS ATC Area Traffic Control VA Vehicle-actuated BRT Bus Rapid Transit VMS Variable Message Signs CITC China International Tendering Company WBCC Wuhan Bridge Construction Company CMIS Computerized Management Information System WBOB Bank's Beijing Office CNAO China National Audit Office WCC Wuhan Construction Commission HPAB Hubei Provincial Audit Bureau WCCTPDI Wuhan Comprehensive Transport Planning HPFB Hubei Provincial Finance Bureau And Design Institute I/M Inspection and Maintenance WGPTC Wuhan Group Public Transport Corporation MOF Ministry of Finance WMAB Wuhan Municipal Audit Bureau MPLG Municipal Project Leading Group WMCIMO Wuhan Municipal Capital Investment MVECS Motor Vehicle Emission Control Strategy Management Office NMT Non-motorized Transport WMEDRIC Wuhan Municipal Engineering Design & NMV Non Motor Vehicle Research Institute Company Ltd. OPO One Person Operation WMFB Wuhan Municipal Finance Bureau PMR Project Management Report WMG Wuhan Municipal Government PPLG Provincial Project Leading Group WPO Wuhan Project Office PSO Public Service Obligation WPTGC Wuhan Public Transport Group Company RM Road Maintenance WPTMO Wuhan PT Monitoring Office RMMS Road Maintenance Management System WTC Wuhan Transport Commission RMMIS Road Maintenance Management Information WUCFMO Wuhan Urban Construction Fund System Management Office RUE Road User Education WUCUFU Wuhan Urban Construction Utilization of SEA Strategic Environmental Assessment PMO Foreign Investment Project SEPA State Environmental Protection Administration Management Office TA Technical Assistance WUTP Wuhan Urban Transport Project TDM Travel Demand Management WUTPLG Wuhan Urban Transport Project Leading Group TM Traffic Management WUTPO Wuhan Urban Transport Project Office UTP Urban Transport Planning WUTS Wuhan Urban Transport Strategy Vice President: Jemal-ud-din Kassum, EAPVP Country ManagedDirector: Yukon Huang, EACCF Sector ManagedDirector: Jitendra N. Bajpai, EASTR Task Team Leader/Task Manager: Edward Dotson, Senior Urban Transport Specialist, EASTR FOR OFFICLAL USE ONLY CHINA WUHAN URBAN TRANSPORT PROJECT CONTENTS A. Project Development Objective Page 1. Project development objective 2 2. Key performance indicators 2 B. Strategic Context 1, Sector-related Country Assistance Strategy (CAS) goal supported by the project 3 2. Main sector issues and Government strategy 3 3. Sector issues to be addressed by the project and strategic choices 7 C. Project Description Summary 1. Project components 9 2. Key policy and institutional reforms supported by the project 10 3. Benefits and target population 11 4. Institutional and implementation arrangements 11 D. Project Rationale 1. Project alternatives considered and reasons for rejection 13 2. Major related projects financed by the Bank andor other development agencies 14 3. Lessons learned and reflected in the project design 15 4. Indications of borrower commitment and ownership 16 5. Value added of Bank support in this project 16 E. Summary Project Analysis 1. Economic 17 2. Financial 17 3. Technical 19 4. Institutional 20 5. Environmental 21 6. Social 23 7. Safeguard Policies 25 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. F. Sustainability and Risks 1. Sustainability 26 2. Critical risks 26 3. Possible controversial aspects 28 G. Main Conditions 1. Effectiveness Condition 28 2. Other 29 H. Readiness for Implementation 30 1. Compliance with Bank Policies 31 Annexes Annex 1: Project Design Summary 32 Annex 2: Detailed Project Description 41 Annex 3: Estimated Project Costs 58 Annex 4: Cost Benefit Analysis Summary, or Cost-Effectiveness Analysis Summary 59 Annex 5: Financial Summary for Revenue-Earning Project Entities, or Financial Summary 63 Annex 6: (A) Procurement Arrangements 65 (B) Financial Management and Disbursement Arrangements 74 Annex 7: Project Processing Schedule 80 Annex 8: Documents in the Project File 81 Annex 9: Statement ofLoans and Credits 82 Annex 10: Country at a Glance 86 Annex 11 : Environmental Assessment 88 Annex 12: Resettlement 95 Annex 13: Wuhan Urban Transport Strategy 100 Annex 14: Reform of Public Transport 109 MAP(S) 1. IBRD No. 32429 2. IBRD No. 32430 3. IBRD No. 32431 CHINA Wuhan Urban Transport Project Project Appraisal Document East Asia and Pacific Region EASTR 30RROWER 381.80 1 16.40 [ 398.20 [BRD 71.00 I 129.00 I 200.00 rotal: 452.80 145.40__. 598.20.. - -. I -I-I Borrower: PEOPLE'S REPUBLIC OF CHINA Responsible agency: MUNICIPALITY OF WUHAN Project Office Address: No. 130 Yanjiang Ave. Hankou Wuhan China Contact Person: Hui Shu Zhi, Vice Director Tel: 86-27-85886173 Fax: 86-27-8281 1498 Email: Whj txmb@Public .Wh .Hb .Cn Estimated Disbursements ( Bank FYlUS$m): Project implementation period: December 2003 - December 2008 Expected effectiveness date: 06/0 112004 Expected closing date: * 06/30/2009 A. Project Development Objective 1. Project development objective: (see Annex 1) The Wuhan Urban Transport Project will promote the development ofan integrated, efficient, and sustainable transport system for the movement ofpeople (especially the poorer sections of society) and goods in Wuhan. More specifically, the project aims to support: (i) Investments in transport infrastructure and services that address the needs ofthe existing system - in particular, the issues related to capacity, safety and sustainability, and mobility of users, (particularly the most vulnerable sections ofsociety) within a long-term framework provided by the approved Master Plan (ii) Formulation of a transport strategy to guide investment decisions (iii) Reforms to improve performance ofbus service delivery. 2. Key performance indicators: (see Annex 1) The key performance indicators to measure the progress on each ofthe three project development objectives are listed below (see Annex 1): (i) Investments in transport infrastructure and services 0 Capacity and EfJiciency: to evaluate improvements in - Travel times on key external/cross town, cross river and central area routes - Average daily ridership on the bus system 0 Mobility: reduction in travel times for users of most heavily used modes oftransport 0 Sustainability: - Implementation ofannual road maintenance plans based on the Road Maintenance Management System (RMMS) - Formulation and adoption ofan effective motor vehicle emission control strategy (ii) Support for the Wuhan Urban Transport Strategy (WUTS) through the following measures: 0 Further detailed studies as proposed in the WUTS Study Report 0 Preparation of a transport policy “White Paper” 0 Identification of Five year investment programs (iii) Bus system reform through 0 Completion ofbus route tendering on a competitive basis across the bus system The Wuhan Municipal Government (WMG) agreed with these performance indicators at negotiations. For the road safety interventions in the project, as it is technically not possible to forecast the expected reduction in the incidence and severity ofaccidents, particularly among pedestrians and non-motorized transport (NMT) users, no indicator could be agreed. However the interventions will be monitored and evaluated. -2- B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1) Document number: R2002-02 18 [IFC/R2002-02241 Date of latest CAS discussion: 12/19/02 The CAS supports China’s transition from a rural, agricultural society to an urban, industrial society, and from a centrally planned to a more globally integrated market-based economy. The CAS also notes the growing concerns about the social consequences and sustainability ofChina’s economic growth. These economic trends, at the core of China’s Tenth Five-year Plan, also form the basis for the three themes ofBank’s operation strategy in China, namely to: (1) Improve the business environment and help accelerate China’s transition to a market economy (2) Address the needs of the poorer and disadvantaged people and regions (3) Facilitate a more environmentally sustainable development process The Wuhan Urban Transport Project (WUTP) would enhance the urban efficiency and mobility within an important medium sized city situated in the center of China, and encourage a market-based delivery ofurban transport services, particularly public transport. The physical and institutional elements ofthe project address the three CAS themes. Development of a sustainable and balanced urban transport system would improve the business environment and labor mobility in Wuhan. Reform ofstate owned bus companies and introduction of competition in the supply ofbus services would accelerate China’s transition to a market
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