Jiangxi provincial highway project Report No: ; Type: Report/Evaluation Memorandum ; Country: China; Region: East Asia And Pacific; Sector: Highways; Major Sector: Transportation; ProjectID: P003485
CHINA: Jiangxi Provincial Highway Project (Credit 1984-CHA)
Public Disclosure Authorized The China Jiangxi Provincial Highway Project, supported by Credit 1984-CHA for US$61 million, was approved in FY1989. The total project costs were US$173.69 million. The credit was fully disbursed and closed on schedule in December 1995. The Implementation Completion Report (ICR) was prepared by the East Asia and Pacific Regional Office with the Borrower’s contribution. A summary of the borrower's report is included as Appendix B.
The project’s objectives were: (i) to provide urgently needed road capacity in the transport corridor between the provincial capital Nanchang and the inland port of Jiujiang at Chang River, some 100 km north of Nanchang and a bridge across the Gan River at Nanchang; and (ii) to undertake staff training and transfer of technology in planning, pavement strengthening, and maintenance management. The project consisted of: (a) construction of a 113 km two- lane highway between Nanchang and Jiujiang; (b) construction of a double-deck bridge across the Gan River at Nanchang; (c) provision of maintenance and operation equipment for the highway and the bridge; (d) setting up a Public Disclosure Authorized road data bank and a pavement management system and providing the necessary equipment and expertise for them; (e) assistance and training in pavement strengthening methods; and (f) training of Jiangxi Provincial Transport Department (JPTD) and Nanchang municipal staff in highway and transport planning.
The project’s objectives were achieved. With the help of strenuous efforts by the Bank and the Borrower, all the civil works were completed satisfactorily and in agreement with Bank policies on resettlement and the environment. There was a 63 percent cost overrun due to changes to remedy inadequate base design and standards, many unforeseen factors, substantial changes in the scope of work, and inflation and delays in construction. The economic rates of return (ERR) of the main subprojects +ranging from 30 to 38 percent at appraisal+ vary from 4 to 30 percent in the ICR. At completion the project’s ERR was re-estimated at 22.6 percent. Except for the Nanchang-Jiujiang Highway, subprojects had lower ERRs than expected because increased costs were not offset by benefits from increased traffic volumes. For the “connecting” road from Nanchang City to the highway, the 4.3 percent ERR does
Public Disclosure Authorized not fully reflect the benefits of that road which has two interchanges and other structures to provide for the separation of local and through traffic in urban residential areas.
Some transfer of know-how and technology took place. A staff training program was undertaken and maintenance and other specialized equipment was procured as planned. Studies and data collection on pavement strengthening, the road data bank, and pavement management systems were not implemented as planned because of the Ministry of Communication’s subsequent preference for a nationwide approach to the issues. The pavement management system is operational in Jiangxi, but more effort and budgetary support are needed to make it a management tool and to extend its use to the entire provincial road network.
OED rates project outcome as satisfactory, institutional development as modest, and sustainability as likely because there is a clear plan for the project’s operation. Bank performance is rated as highly satisfactory. These ratings are consistent with those in the ICR, except for Bank performance which was rated as satisfactory. The upgrading reflects the intense and effective supervision effort to implement this difficult project with a new Borrower
Public Disclosure Authorized unfamiliar with Bank procedures.
The project was rich in lessons learned. Among them are the importance of timely remedial actions by management when a project begins to falter; the importance of contractors’ prequalification and of supervision to ensure quality in civil works when both contracting and independent supervision are new to the implementing agency. Lastly, to be successful, staff training programs require careful planning to meet the client’s needs, schedules and language capabilities.
The ICR is of highly satisfactory quality. It provides not only a thorough economic analysis but also a comprehensive discussion of the problems encountered, and how satisfactory solutions were jointly evolved by the Bank and the Borrower for a difficult project in circumstances with which the Borrower had no previous experience.
No audit is planned.