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PCR: People's Republic of China: Heilongjiang Road Network

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PCR: People's Republic of China: Heilongjiang Road Network Completion Report Project Number: 39038 Loan Number: 2247 September 2012 People’s Republic of China: Heilongjiang Road Network Development Project CURRENCY EQUIVALENTS Currency Unit – yuan (CNY) At Appraisal At Project Completion (5 July 2006) (1 March 2012) CNY1.00 = $0.1250 $0.1587 $1.00 = CNY8.0002 CNY6.3017 ABBREVIATIONS ADB – Asian Development Bank EIA – environmental impact assessment EIRR – economic internal rate of return EMP – environmental management plan EMR – environmental monitoring report ENPV – economic net present value HDM-4 – Highway Development and Management-4 HEPD – Heilongjiang Environmental Protection Department HPDT – Heilongjiang Provincial Department of Transport, formerly Heilongjiang Provincial Communications Department HPG – Heilongjiang Provincial Government LAR – land acquisition and relocation LIBOR – London interbank offered rate MOT – Ministry of Transport, formerly Ministry of Communications M&E – monitoring and evaluation O&M – operation and maintenance PCR – project completion report PCU – passenger car unit PMO – project management office PPMS – project performance management system PPTA – project preparatory technical assistance PRC – People’s Republic of China RAMS – road asset management system RRP – report and recommendation of the President SDAP – social development action plan SEIA – summary environmental impact assessment VOC – vehicle operating cost WEIGHTS AND MEASURES ha – hectare kg – kilogram km – kilometer m – meter m2 – square meter mu – 1/15 hectare NOTES (i) The fiscal year (FY) of the government and its agencies ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2012 ends on 31 December 2012. (ii) In this report, "$" refers to US dollars. Vice-President S. Groff, Operations 2 Director General R. Wihtol, East Asia Department (EARD) Director T. Duncan, Transport and Communications Division, EARD Team leader V. Tian, Transport Specialist, EARD Team members S. Lewis-Workman, Senior Economist, EARD G. O'Farrell, Environmental Specialist, EARD T. Bisht, Social Development Specialist, EARD A. D. Armamento, Operations Officer, 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 2 A. Relevance of Design and Formulation 2 B. Project Outputs 3 C. Project Costs 4 D. Disbursements 5 E. Project Schedule 5 F. Implementation Arrangements 6 G. Conditions and Covenants 6 H. Related Technical Assistance 6 I. Consultant Recruitment and Procurement 7 J. Performance of Consultants and Contractors 8 K. Performance of the Borrower and the Executing Agency 8 L. Performance of the Asian Development Bank 9 III. EVALUATION OF PERFORMANCE 9 A. Relevance 9 B. Effectiveness in Achieving Outcome 9 C. Efficiency in Achieving Outcome and Outputs 10 D. Preliminary Assessment of Sustainability 11 E. Impact 11 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 13 A. Overall Assessment 13 B. Lessons 14 C. Recommendations 14 APPENDIXES 1. Design and Monitoring Framework 15 2. Chronology of Major Events 22 3. List of Roadside Stations 24 4. Training Programs Provided 25 5. Updated Project Cost and Financing Plan 26 6. Projected and Actual Contract Awards and Disbursements 27 7. Appraisal and Actual Implementation Schedules 28 8. Organization Chart 29 9. Status of Compliance with Major Loan Covenants 31 10. Contract Packages Financed by Asian Development Bank 42 11. Economic Reevaluation 46 12. Financial Reevaluation 56 13. Social Development Action Plan 60 14. Environmental Impact Analysis 70 15. Land Acquisition and Resettlement 81 BASIC DATA A. Loan Identification 1. Country People’s Republic of China 2. Loan Number 2247-PRC 3. Project Title Heilongjiang Road Network Development Project 4. Borrower People’s Republic of China 5. Executing Agency Heilongjiang Provincial Department of Transport 6. Amount of Loan $200.0 million 7. Project Completion Report Number PRC 1339 B. Loan Data 1. Appraisal – Date Started 17 April 2006 – Date Completed 18 April 2006 2. Loan Negotiations – Date Started 5 June 2006 – Date Completed 7 June 2006 3. Date of Board Approval 26 July 2006 4. Date of Loan Agreement 19 January 2007 5. Date of Loan Effectiveness – In Loan Agreement 19 April 2007 – Actual 7 May 2007 – Number of Extensions 1 6. Closing Date – In Loan Agreement 30 September 2011 – Actual 1 March 2012 – Number of Extensions none 7. Terms of Loan – Interest Rate LIBOR-based lending rate in US dollars – Maturity (number of years) 25 – Grace Period (number of years) 5 8. Terms of Relending (if any) – Interest Rate LIBOR-based lending rate in US dollars – Maturity (number of years) 25 – Grace Period (number of years) 5 – Second-Step Borrower Heilongjiang Provincial Government iii 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 13 July 2007 1 March 2012 56.0 months Effective Date Original Closing Date Time Interval 7 May 2007 30 September 2011 52.4 months b. Amount ($ million) Category Last Net or Original Revised Amount Amount Amount Undisbursed Subloan Allocation Allocation Canceled Available Disbursed Balance Civil Works – Main Road 184.270 183.110 0.000 183.110 183.168 (0.058) Civil Works – Rural Roads 15.000 16.304 0.000 16.304 16.304 0.000 Consulting Services 0.154 0.151 0.000 0.151 0.151 0.000 Training 0.576 0.4340.000 0.4340.376 0.058 Imprest Account 0.000 Total 200.000 200.000 0.000 200.000 200.000 0.000 () = negative Note: The balance of undisbursed funds were reallocated from training to civil works and disbursed against eligible payments at project closing. C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 200.00 200.00 Local Currency Cost 324.55 338.19 Total 524.55 538.19 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 147.68 170.95 ADB Financed 200.00 200.00 Other External Financing 148.80 139.38 Total 496.48 510.33 IDC Costs Borrower Financed 28.07 27.86 ADB Financed 0.00 0.00 Other External Financing 0.00 0.00 Total 28.07 27.86 ADB = Asian Development Bank, IDC = interest during construction. iv 3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual A. Investment Cost 1. Civil Works Mainline Roads 361.80 395.48 Link Roads 15.83 18.56 2. Land Acquisition and Resettlement 32.64 47.76 3. Equipment 3.79 3.00 4. Supervision and Training 9.29 13.69 5. Project Preparation and Design 19.80 17.95 Administration 6. Taxes and Duties 11.98 13.89 Total Base Cost (A) 455.13 510.33 B. Contingencies 1. Physical 21.90 0.00 2. Price 19.44 0.00 Subtotal (B) 41.34 0.00 C. Financing Charges During Implementation 28.07 27.86 Total 524.55 538.19 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants 1 Oct 2006 28 Feb 2008 Completion of Engineering Designs 31 Mar 2006 1 Jun 2006 Civil Works Contract Date of Award 1 Aug 2006 6 Nov 2006 Completion of Work 30 Oct 2009 30 Sep 2009 Equipment and Supplies Dates First Procurement 1 Apr 2008 May 2009 Last Procurement 1 Jun 2009 Sep 2009 Completion of Equipment Installation 30 Nov 2009 Nov 2009–Apr 2010 Start of Operations Completion of Tests and Commissioning Not available Sep 2009–Sep 2011 Beginning of Start-Up Not available Sep 2009 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From 26 July 2006 to 31 May 2008 Satisfactory Satisfactory From 1 June 2008 to 31 May 2010 Satisfactory Highly satisfactory From 1 June 2010 to 30 June 2010 Satisfactory Satisfactory From 1 July 2010 to 31 July 2010 Satisfactory Partly satisfactory From 1 August 2010 to 1 March 2012 Satisfactory Highly satisfactory v D. Data on Asian Development Bank Missions No. of No. of Specialization of Name of Mission Date Persons Person-Days Membersa Fact-finding 8–15 Feb 06 4 32 a, b, c, d Appraisal 17–18 Apr 06 6 12 e, b, f, c, d, g Inception 7–11 Dec 06 1 5 h Review 1 25–27 Sep 07 3 9 h, b, i Midterm 28 May–1 Jun 08 4 20 h, b, j, I Review 2 13–15 Mar 09 3 6 h, j, k Review 3 11–15 Nov 10 3 11 h, l, m Project completion review 9–21 Jul 12 6 44 h, l, o, p, q, r a a = senior transport economist and mission leader, b = senior resettlement specialist, c = project engineer (roads), d = senior program officer (financial analyst), e = principal transport specialist and mission leader, f = project administration unit head, g = counsel, h = transport specialist and mission leader, i = associate project analyst, j = transport specialist, k = assistant project analyst, l = operations officer, m = staff consultant and resettlement specialist, n = senior transport economist, o = resettlement specialist, p = environment specialist, q = transport economist, r = staff consultant and transport economist I. PROJECT DESCRIPTION 1. In 2005, despite huge investments, the road network in the People’s Republic of China (PRC) still did not provide access to some parts of the country, particularly in the poorer inland regions; and was inadequate to support sustainable economic growth. High-standard roads (above class II)1 accounted for only 15.5% of the total network, with the remaining 84.5% consisting of medium to low-grade paved roads and gravel roads. The growing demand for road transport was creating bottlenecks in the network and straining the road infrastructure, resulting in high transport costs that constrained economic development and poverty reduction.
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