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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 54367-CN PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF US$150 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR THE TAIYUAN URBAN TRANSPORT PROJECT May 13, 2010 Public Disclosure Authorized China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective September 2009) Currency Unit = RMB or Chinese Yuan US$1 = 6.8 RMB FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ATC Area Wide Traffic Control PLG Project Leading Group BRT Bus Rapid Transit PT Public Transport CDD Taiyuan Municipal Urban Construction QBS Quality Based Selection Development Department CQS Consultant Qualifications-based QCBS Quality and Cost Based Selection Selection DA Designated Account RAP Resettlement Action Plan EA Environmental Assessment RI Road infrastructure EIA Environmental Impact Assessment RPF Resettlement Policy Framework EIRR Economic Internal Rate of Return RSC Road Safety Committee EMP Environmental Management Plan SBD Standard bidding documents FM Financial Management SPFB Shanxi Provincial Finance Bureau FMM Financial Management Manual SOE State-owned enterprise GDP Gross Domestic Product SOEx Statement of expenses ICB International Competitive Bidding Sub-PMO Sub-Project Management Office IS Institutional Strengthening Component TA Technical Assistance MBD Model Bidding Documents TR Taihang Road MoF Ministry of Finance TCC Taiyuan Housing, Rural and Urban Construction Commission MV Motorized Vehicles TMDRC Taiyuan Municipal Development and Reform Commission NCB National Competitive Bidding TMFB Taiyuan Municipal Finance Bureau NMT Non Motorized Vehicles TMG Taiyuan Municipal Government NPV Net Present Value TPMO Taiyuan Project Management Office PH Phase TTPB Taiyuan Traffic Police Brigade TPTGC Taiyuan Public Transport Group Co. TS Traffic Safety and Management Vice President: James W. Adams Country Manager/Director: Klaus Rohland Sector Managers: Ede Ijjasz-Vasquez (EASCS) and Vijay Jagannathan (EASIN) Task Team Leader: Shomik Mehndiratta CHINA TAIYUAN URBAN TRANSPORT CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE ..................................................................... 1 A. Country and Sector Issues ................................................................................................... 1 B. Rationale for Bank Involvement ......................................................................................... 2 C. Higher-level Objectives to which the Project Contributes ................................................. 2 II. PROJECT DESCRIPTION ..................................................................................................... 3 A. Lending Instrument ............................................................................................................. 3 B. Project Development Objective and Key Indicators ........................................................... 3 C. Project Components ............................................................................................................ 3 D. Lessons Learned and Reflected in the Project Design ........................................................ 4 E. Alternatives Considered and Reasons for Rejection ........................................................... 5 III. IMPLEMENTATION .............................................................................................................. 5 A. Institutional and Implementation Arrangements ................................................................ 5 B. Monitoring and Evaluation of Outcomes/Results ............................................................... 6 C. Sustainability....................................................................................................................... 7 D. Critical Risks and Possible Controversial Aspects ............................................................. 7 E. Loan Conditions and Covenants ......................................................................................... 9 IV. APPRAISAL SUMMARY ....................................................................................................... 9 A. Economic and Financial Analyses ...................................................................................... 9 B. Technical ........................................................................................................................... 10 C. Fiduciary ........................................................................................................................... 11 D. Social................................................................................................................................. 11 E. Environment ...................................................................................................................... 12 F. Safeguard Policies ............................................................................................................. 13 G. Policy Exceptions and Readiness...................................................................................... 14 Annex 1: Country and Sector Background .............................................................................. 15 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 27 Annex 3: Results Framework and Monitoring ........................................................................ 28 Annex 4: Detailed Project Description ...................................................................................... 34 Annex 5: Project Costs ............................................................................................................... 45 Annex 6: Implementation Arrangements ................................................................................. 48 Annex 7: Financial Management and Disbursement Arrangements ..................................... 52 Annex 8: Procurement ................................................................................................................ 59 Annex 9: Economic and Financial Analysis ............................................................................ 65 Annex 10: Safeguard Policy Issues ............................................................................................ 72 Annex 11: Project Preparation and Supervision ..................................................................... 81 Annex 12: Documents in the Project File ................................................................................. 82 Annex 13: Statement of Loans and Credits .............................................................................. 83 Annex 14: Country at a Glance ................................................................................................. 87 Annex 15: Maps (IBRD 36446 and 36447) ............................................................................... 89 CHINA TAIYUAN URBAN TRANSPORT PROJECT PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC EASCS Date: May 13, 2010 Team Leader: Shomik Raj Mehndiratta Country Director: Klaus Rohland Sectors: General transportation sector (100%) Sector Manager: Ede Jorge Ijjasz-Vasquez Themes: Other urban development (P) (EASCS) and Vijay Jagannathan (EASIN) Project ID: P081615 Environmental screening category: Full Assessment Lending Instrument: Specific Investment Loan Project Financing Data [X] Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (US$m.): 150.00 Proposed terms: US Dollar denominated, commitment linked Variable-Spread Loan, repaid over twenty-five years, including a five year grace period. Financing Plan ($m) Source Local Foreign Total Borrower 180.59 0.00 180.59 International Bank for Reconstruction and 0.00 150.00 150.00 Development Total: 180.59 150.00 330.59 Borrower: People's Republic of China, represented by Ministry of Finance Beijing China Responsible Agency: Shanxi Finance Bureau No. 345, Yinze Street, Taiyuan Shanxi Province China 030001 Tel: (86-351) 415-2220/21/23Fax: (86-351) 4045332 [email protected] Estimated disbursements (Bank FY/$m) FY 11 12 13 14 15 16 17 Annual 2.00 10.00 30.00 30.00 30.00 30.00 18.00 Cumulative 2.00 12.00 42.00 72.00 102.00 132.00 150.00 Project implementation period: Start July 15, 2010 End: December 31, 2015 Expected effectiveness date: September 15, 2010 Expected closing date: June 30, 2016 Does the project depart from the CAS in content or other significant respects? [ ]Yes [X] No Ref. PAD I.C. Does the project require any exceptions from Bank policies? Ref. PAD IV.G. [ ]Yes [X] No Have these been approved by Bank management? [ ]Yes [ ] No Is approval for any policy exception sought from the Board? [ ]Yes [X] No Does the project include any critical risks rated “substantial” or “high”? [ ]Yes [X] No Ref. PAD III.E. Does the project meet the Regional criteria for readiness for implementation? [X]Yes [ ] No Ref. PAD IV.G. Project development objective Ref. PAD II.C., Technical Annex 3 The project‟s development objective is to improve mobility on selected transport corridors of the city center of Taiyuan Municipality in Shanxi Province of the
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