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World Bank Document Document of The World Bank Public Disclosure Authorized Report No:ICR0000132 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-45480) ON A Public Disclosure Authorized LOAN IN THE AMOUNT OF US$123.1 MILLION TO PEOPLE’S REPUBLIC OF CHINA FOR THIRD HENAN PROVINCIAL 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 (Exchange Rate December 31, 2006) Currency Unit = Renminbi Yuan RMB Yuan 1.00 = US$0.28 US$1.00 = RMB Yuan 7.809 FISCAL YEAR ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy CPMS China Pavement Management System E&M Electrical and Mechanical EAP Environmental Action Plan EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return ENPV Economic Net Present Value FIRR Financial Internal Rate of Return FNPV Financial Net Present Value GOVIA Gross Output Value of Industry and Agriculture HAB Henan Highway Administration Bureau HPCD Henan Provincial Communications Department ICR Implementation Completion Report LRIPC Local Road Improvement in the Poor Counties M&E Monitoring and Evaluation NTHS National Trunk Highway System PAD Project Appraisal Document PAP Project Affected Person PCD Provincial Communication Department PDO Project Development Objectives QEA Quality at Entry QSA Quality of Supervision RAP Resettlement Action Plan SHRP Strategic Highway Research Program ZXE Zumadian-Xinyang Expressway Vice President: James W. Adams, EAPVP Country Director: David R. Dollar, EACCH Sector Manager: Junhui Wu, EASTE Project Team Leader: Alain Dube, EASTE CHINA Third Henan Provincial 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…………………………...6 3. Assessment of Outcomes………………………………………………………...10 4. Assessment of Risk to Development Outcome………………………………….17 5. Assessment of Bank and Borrower Performance………………………………..18 6. Lessons Learned…………………………………………………………………19 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners…...21 Annex 1. Project Costs and Financing……………………………………………….22 Annex 2. Outputs by Component……………………………………………………23 Annex 3. Economic and Financial Analysis…………………………………………27 Annex 4. Bank Lending and Implementation Support/Supervision Processes……...34 Annex 5. Beneficiary Survey Results………………………………………………..36 Annex 6. Stakeholder Workshop Report and Results……………………………….37 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR……………38 Annex 8. Comments of Cofinancers and Other Partners/Stakeholders……………...45 Annex 9. List of Supporting Documents…………………………………………….46 MAPS A. Basic Information Third Henan Provincial Country: China Project Name: Highway Project Project ID: P058844 L/C/TF Number(s): IBRD-45480 ICR Date: 06/28/2007 ICR Type: Core ICR THE PEOPLE'S Lending Instrument: SIL Borrower: REPUBLIC OF CHINA Original Total USD 150.0M Disbursed Amount: USD 123.1M Commitment: Environmental Category: A Implementing Agencies: Henan Provincial Communications Department Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 06/02/1999 Effectiveness: 03/30/2001 03/30/2001 Appraisal: 01/08/2000 Restructuring(s): Approval: 05/16/2000 Mid-term Review: Closing: 12/31/2005 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 Highly Satisfactory 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 98 98 Sub-national government administration 2 2 Theme Code (Primary/Secondary) Infrastructure services for private sector development Primary Primary Rural services and infrastructure 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: Alain M. Dube Jacques M. Tollie ICR Team Leader: Alain M. Dube ICR Primary Author: Alain M. Dube F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The project aims at providing a more efficient and effective transport infrastructure in support of social and economic development in Henan Province. To meet the above development objectives, the project targeted the following outcomes: • traffic congestion reduced and mobility enhanced in the Zumadian-Xinyang corridor, a key section of China’s National Trunk Highway System (NTHS); • accessibility to the poor areas in the province improved; and ii • efficiency and effectiveness in public sector management of the road network enhanced through institutional and management measures in support of improved asset maintenance, safely and construction quality, while preparing the sector for commercialization opportunities. Revised Project Development Objectives (as approved by original approving authority) The PDO remained the same throughout project implementation. (a) PDO Indicators The key indicators were slightly modified in the project. The PAD and Loan Agreement did not contain baseline or target values for the indicators. These were provided through Supplemental Letter No. 2 on February 5, 2001 except for the outcome indicators: ‘Balance of provincial expenditure programs’, ‘Transport Costs’ and ‘Financial performance of expressway company.’ These Supplemental Letter indicators, except for the three without any baseline or target values, have been used as the basis for indicators in this ICR. (b) Intermediate Outcome Indicators As noted above, the approval documents did not contain values for the PDO indicators. These were defined in Supplemental Letter No. 2 (February 5, 2001) and are listed under the ‘Formally Revised Target Values’. (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 Gross Output Value of Agriculture and Industry (GOVIA) in Zhumadian- Indicator 1 : Xinyang corridor (in RMBY billion). Value quantitative or 127.0 245.6 243.6 Qualitative) Date achieved 12/31/1997 12/31/2005 12/31/2005 Comments This indicator was achieved with the actual value less than 1% below the target (incl. % value. achievement) Gross Output Value of Agriculture and Industry (GOVIA) in affected counties Indicator 2 : (in RMBY billion). Value quantitative or 18.5 35.3 36.0 Qualitative) Date achieved 12/31/1997 12/31/2005 12/31/2005 Comments This indicator was achieved with the actual value exceeding the target value by (incl. % 2%. achievement) iii Indicator 3 : Percentage of periodic maintenance put out to competitive bidding. Value quantitative or 25% 100% 100% Qualitative) Date achieved 12/31/2001 12/31/2005 12/31/2005 Comments (incl. % achievement) Indicator 4 : Responsiveness and Effectiveness maintenance programs. Value quantitative or 60% 90% 60% Qualitative) Date achieved 12/31/1997 12/31/2005 12/31/2005 Comments While responsiveness and effectiveness of the maintenance program in 2005 was (incl. % below the target, the 2006 results showed a significant improvement to 89%. achievement) Indicator 5 : Traffic safety (Number of fatalities per year in Province). Value quantitative or 9,142 7,722 4,604 Qualitative) Date achieved 12/31/1997 12/31/2005 12/31/2005 Comments The number of fatalities is over 40% lower than the target value. It should be (incl. % noted that the units in Supplemental Letter No. 1 are injuries, but the values achievement) supplied are fatalities. The latter have therefore been used. (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Indicator 1 : Average daily traffic on existing road/new expressway Value (quantitative 6,611/0 6,879/14,040 7,327/10,668 or Qualitative) Date achieved 12/31/1997 12/31/2005 12/31/2005 Total traffic volume on both the NH107 and the ZXE is 13% lower than expected Comments as of December 2005. The diversion rate from NH107 to ZXE is similar to what (incl. % was anticipated in the PAD (58% vs 60%), although lower than suggested by the achievement) revised target values. Indicator 2 : Average vehicle speed (km/h) on existing road/new expressway Value (quantitative 51.7/0 51.3/87.8 62/89.8 or Qualitative) Date achieved 12/31/1997 12/31/2005 12/31/2005 Comments The vehicle speeds on both the existing road and the expressway
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