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Document of the World Bank Document of The World Bank Report No: 40097 Public Disclosure Authorized GEF PROJECT BRIEF ON A Public Disclosure Authorized PROPOSED GRANT FROM THE GLOBAL ENVIRONMENT FACILITY TRUST FUND IN THE AMOUNT OF USD 21.0 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR AN Public Disclosure Authorized GEF CHINA WORLD BANK URBAN TRANSPORT PARTNERSHIP PROGRAM April 25, 2007 Version Submitted to GEF Council Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective {Date}) Currency Unit = USD =USD1 USD = SDR1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ASIF Activity, Structure, Intensity, and Fuel Choice APO Adaptable Program Operation BRT Bus Rapid Transit CAS Country Assistance Strategy CDM Clean Development Mechanism CNG Compressed Natural Gas CO Carbon Monoxide CO2 Carbon Dioxide DRC Development and Reform Commission EA Environmental Assessment EMP Environmental Management Plan ESMF Environmental and Social Management Framework ExA Executing Agency GEF Global Environmental Facility GHG Greenhouse Gas GoC Government of China IA Implementing Agency IBRD International Bank for Reconstruction and Development (The World Bank) ICT Institute of Comprehensive Transportation MLR Ministry of Land and Resources MoCn Ministry of Construction MOST Ministry of Science and Technology MPS Ministry of Public Security NDRC National Development and Reform Commission NGO Non-Governmental Organization NMT Non-Motorized Transport NOx Nitrogen Oxides OP11 Operational Program Number 11 of GEF PAD Project Brief PDF Project Development Facility PM Particulate Matter PM10 Particulate Matter 10 microns and less in diameter PMO Project Office 2 SDR Special Drawing Rights SEPA State Environmental Protection Agency SIL Specific Investment Loan STAP Scientific and Technical Advisory Panel TA Technical Assistance TOR Terms of Reference UK United Kingdom UNDP United Nations Development Program UNEP United Nations Environmental Program UNFCCC United Nations Framework Convention on Climate Change US United States USD United States Dollar VKT Vehicle Kilometers Traveled WB World Bank Vice President: Mr. James W. Adams, EAPVP Country Director: Mr. David R. Dollar, EACCF Sector Manager: Ms. Junhui Wu, EASTE Task Team Leader: Mr. Shomik Mehndiratta 3 PEOPLE'S REPUBLIC OF CHINA GEF China World Bank Urban Transport Partnership Program CONTENTS Page A. STRATEGIC CONTEXT AND RATIONALE ............................................................. 6 1. Country and sector issues....................................................................................................6 2. Rationale for Bank involvement ......................................................................................... 7 3. Higher level objectives to which the project contributes.................................................... 7 B. PROJECT DESCRIPTION............................................................................................. 8 1. Lending instrument ............................................................................................................. 8 2. Project development objective and key indicators.............................................................. 8 3. Project components............................................................................................................. 9 4. Lessons learned and reflected in the project design.......................................................... 11 5. Alternatives considered and reasons for rejection ............................................................ 12 C. IMPLEMENTATION .................................................................................................... 13 1. Partnership arrangements.................................................................................................. 13 2. Institutional and implementation arrangements................................................................ 13 3. Monitoring and evaluation of outcomes/results................................................................ 14 4. Sustainability and Replicability ........................................................................................ 14 5. Critical risks and possible controversial aspects............................................................... 15 6. Loan/credit conditions and covenants............................................................................... 16 D. APPRAISAL SUMMARY............................................................................................. 16 1. Economic and financial analyses...................................................................................... 16 2. Technical........................................................................................................................... 16 3. Fiduciary ........................................................................................................................... 17 4. Social................................................................................................................................. 18 5. Environment...................................................................................................................... 18 6. Safeguard policies............................................................................................................. 19 7. Policy Exceptions and Readiness...................................................................................... 19 4 Page Annex 1: Country and Sector or Program Background ................................................................20 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ........................32 Annex 3: Results Framework and Monitoring ...............................................................................35 Annex 4: Detailed Project Description.............................................................................................41 Annex 5: Project Costs ......................................................................................................................65 Annex 6: Implementation Arrangements ........................................................................................69 Annex 7: Financial Management and Disbursement Arrangements............................................72 Annex 8: Procurement Arrangements.............................................................................................73 Annex 9: Economic Analysis.............................................................................................................77 Annex 10: Safeguard Policy Issues (WB).........................................................................................78 Annex 11: Project Preparation and Supervision (WB)..................................................................79 Annex 12: Documents in the Project File (WB) ..............................................................................81 Annex 13: Statement of Loans and Credits (WB)...........................................................................82 Annex 14: Country at a Glance ........................................................................................................89 Annex 15: Incremental Cost Analysis..............................................................................................91 Annex 16: STAP Roster Review (WB)...........................................................................................114 Annex 17: GEF Secretariat and Other Agencies’ Comments and IA/ExA Responses (WB)...126 Annex 18: Stakeholder Participation Plan ....................................................................................129 Annex 19 : Selection Process for Proposals to be included in Component 2..............................136 Annex 20 : Detailed City Data on Urban Transport ....................................................................148 Map IBRD Number 35397 5 A. STRATEGIC CONTEXT AND RATIONALE 1. Country and sector issues Project Rationale Greenhouse gas (GHG) emissions from China’s urban transport sector are rising very fast, because of explosive growth in car ownership and use. Motorization is also causing severe urban road congestion and worsening urban air quality. As China’s national and municipal leaders recognize, a nation-wide paradigm shift in city transport and land use strategies to promote public transport is urgently required. This project will achieve that paradigm shift. China’s urban transport sector is a large, alarmingly fast-growing source of GHG emissions and a major cause of urban air pollution. China already is the world’s second largest emitter of greenhouse gases (GHG) and will soon become the largest. Transport is the fastest-growing source of emissions, thanks to moderate success in controlling emissions from industrial and energy sources. The most powerful driver of the fast growth in transport CO2 emissions is rapid motorization, particularly in China’s urban areas. The International Energy Agency estimates that CO2 emissions from China’s light-duty transport fleet will rise from 65 MT in 2005 to nearly 300 MT in 2020, an increase of 290 percent. Most of this growth will be from urban transport. Explosive motorization is also causing severe urban traffic congestion and worsening urban air pollution. Today, municipal leaders are under pressure to deliver sustainable solutions to these urban transport challenges. For the past 20 years, most cities’ response to rapid population, income and car ownership growth has been to invest
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