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Document of The World Bank Public Disclosure Authorized Report No:ICR000046 IMPLEMENTATION COMPLETION AND RESULTS REPORT ( IBRD-44930 ) ON A LOAN Public Disclosure Authorized IN THE AMOUNT OF US$312.4 MILLION TO PEOPLE’S REPUBLIC OF CHINA FOR FOURTH NATIONAL HIGHWAY PROJECT Public Disclosure Authorized June 26, 2007 Transport, Energy and Mining Sector Unit Sustainable Development Department East Asia and Pacific Region Public Disclosure Authorized CURRENCY EQUIVALENTS (December 31, 2006 ) Currency Unit = RMB RMB 1.00 = US$0.128 US$1.00 = RMB 7.809 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS BMS Bridge Management System CAS Country Assistance Strategy CPS Country Partnership Strategies E&M Electrical and Mechanical EIA Environmental Impact Assessment EMP Environmental Management Plan HAB Highway Administration Bureau HPCD Hunan and Hubei Provincial Communications Departments ICB International Competitive Bidding ICR Implementation Completion Results Report ISR Implementation Status Results M&E Monitoring and Evaluation MOC Ministry of Communications MOF Ministry of Finance mtu Medium Truck Units NCB National Competitive Bidding NEN National Expressway Network NTHS National Trunk Highway System OED Operations Evaluation Department PAD Project Appraisal Document PAP Project Affected Persons PCD Provincial Communications Department PDO Project Development Objectives PMS Pavement Management System QEA Quality at Entry QSA Quality at Supervision RAP Resettlement Action Plan SPCD State Planning Commission Development TCE Tucheng-Changsha Expressway ZTE Zhengdian-Tucheng Expressway Vice President: James W. Adams, EAPVP Country Director: David R. Dollar, EACCF Sector Manager: Junhui Wu, EASTE Project Team Leader: Christopher R. Bennett, EASTE ICR Team Leader: Christopher R. Bennett, EASTE CHINA Fourth National Highway Project CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 7 3. Assessment of Outcomes.......................................................................................... 13 4. Assessment of Risk to Development Outcome......................................................... 21 5. Assessment of Bank and Borrower Performance ..................................................... 21 6. Lessons Learned ....................................................................................................... 24 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 25 Annex 1. Project Costs and Financing.......................................................................... 27 Annex 2. Outputs by Component ................................................................................. 29 Annex 3. Economic and Financial Analysis................................................................. 33 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 46 Annex 5. Beneficiary Survey Results........................................................................... 48 Annex 6. Stakeholder Workshop Report and Results................................................... 49 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR..................... 50 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders....................... 61 Annex 9. List of Supporting Documents ...................................................................... 62 MAP A. Basic Information CN-Nat Hwy4/Hubei- Country: China Project Name: Hunan Project ID: P041268 L/C/TF Number(s): IBRD-44930 ICR Date: 06/26/2007 ICR Type: Core ICR MINISTRY OF Lending Instrument: SIL Borrower: FINANCE Original Total USD 350.0M Disbursed Amount: USD 312.4M Commitment: Environmental Category: A Implementing Agencies: Hubei Provincial Communications Department Hunan Provincial Communications Department Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 04/05/1996 Effectiveness: 12/13/1999 12/13/1999 Appraisal: 03/15/1999 Restructuring(s): Approval: 06/17/1999 Mid-term Review: Closing: 06/30/2005 12/31/2006 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Low or Negligible Bank Performance: Satisfactory Borrower Performance: Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Satisfactory Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Satisfactory Satisfactory Performance: Performance: i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any Quality of No None time (Yes/No): Supervision (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Roads and highways 99 99 Sub-national government administration 1 1 Theme Code (Primary/Secondary) Municipal governance and institution building Primary Primary E. Bank Staff Positions At ICR At Approval Vice President: James W. Adams Jean-Michel Severino Country Director: David R. Dollar Yukon Huang Sector Manager: Junhui Wu Jitendra N. Bajpai Project Team Leader: Christopher R. Bennett Alfred H. Nickesen ICR Team Leader: Christopher R. Bennett ICR Primary Author: Jean-Marie Braun F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The aim of the project was to increase economic activity along the Wuhan-Changsha high-priority transport corridor through relieving congestion, facilitating trade and mobility, and helping increase efficiency and traffic safety in northern Hunan and southern Hubei provinces. The project development objectives were as follows: (1) relieve traffic congestion and improve the mobility and integration of inter-provincial trade and commerce between Hunan and Hubei Provinces by assisting in the development of a key section of Chinas National Trunk Highway System (NTHS) in the principal Beijing-Zhuhai corridor; (2) strengthen highway institutional capacity at the Hunan and Hubei Provincial Communications Departments (HPCD) and related sector institutions, through policy and institutional reform, provision of training, technical ii assistance and equipment, in planning, finance, design, construction, operation and maintenance of highway networks; (3) develop and sustain a policy dialogue in the two key policy areas of the commercialization and corporatization of provincial toll road authorities and of province-wide highway maintenance management; and (4) improve the safety of road transport. Revised Project Development Objectives (as approved by original approving authority) The PDO was not revised. The indicators were changed in September 1999 for Hubei province. (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Hubei - Average daily traffic on existing NR107 (veh/day) (1) Zhengdian-Anshan; (2) Anshan-Henggou; (3) Henggou-Xianning; (4) Indicator 1 : Xianning-Quankou; (5) Quankou-Puqi; (6) Puqi-Zhaoligiao; (7) Zhaoliqiao- Tucheng (1) 5,935 (1) 4,048 (1) 4,081 (1) 6,210 (2) 6,759 (2) 3,962 (2) 6,312 (2) 6,087 Value (3) 5,499 (3) 3,829 (3) 5,199 (3) 5,081 quantitative or (4) 6,196 (4) 3,679 (4) 7,110 (4) 5,758 Qualitative) (5) 5,675 (5) 3,788 (5) 3,778 (5) 5,240 (6) 5,384 (6) 3,224 (6) 3,224 (6) 5,189 (7) 5,405 (7) 3,278 (7) 3,278 (7) 5,275 Date achieved 12/31/1998 12/31/2006 12/31/2006 12/31/2006 Except for Zhengdian-Anshan, all sections show a decrease in traffic from the Comments 1999 baseline survey. Given the significant economic development in China (incl. % over this period, this confirms that much of the generated traffic has diverted to achievement) the expressway. Hubei - Average travel speed on roads parallel to the proposed road (km/hr) (1) Zhengdian-Anshan; (2) Anshan-Henggou; (3) Henggou-Xianning; (4) Indicator 2 : Xianning-Quankou; (5) Quankou-Puqi; (6) Puqi-Zhaoligiao; (7) Zhaoliqiao- Tucheng (1) 50 (1) 55 (1) 55 (1) 70 (2) 50 (2) 55 (2) 60 (2) 70 Value (3) 45 (3) 50 (3) 55 (3) 65 quantitative or (4) 35 (4) 40 (4) 55 (4) 65 Qualitative) (5) 35 (5) 40 (5) 40 (5) 70 (6) 45 (6) 50 (6) 50 (6) 70 (7) 60 (7) 50 (7) 65 (7) 75 Date achieved 12/31/1998 12/31/2006 12/31/2006 12/31/2006 The improvement in speeds is somewhat counterintuitive since there were no Comments major reductions in volume. They are partially explained by trucks carrying less (incl. % tonnage, and therefore driving faster, as well as improvements made to the achievement) pavement of NR107. Indicator 3 : Hubei - Accident rates on existing NR107 (Number of accidents involving iii fatalities per 10,000 veh.) Value quantitative or 15 12 11 Qualitative) Date achieved 12/31/1998 12/31/2006 12/31/2006 Comments The accident rate exceeds the target, reflecting an overall trend within Hubei (incl. % province towards improved traffic safety. achievement) Hunan