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World Bank Document The World Bank Heilongjiang Cold Weather Smart Public Transportation System (P133114) REPORT NO.: RES29735 Public Disclosure Authorized RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF HEILONGJIANG COLD WEATHER SMART PUBLIC TRANSPORTATION SYSTEM APPROVED ON MARCH 28, 2014 TO Public Disclosure Authorized PEOPLE'S REPUBLIC OF CHINA TRANSPORT EAST ASIA AND PACIFIC Public Disclosure Authorized Regional Vice President: Victoria Kwakwa Country Director: Martin Raiser Regional Director: Ranjit J. Lamech Practice Manager/Manager: Binyam Reja Task Team Leader: Weimin Zhou Public Disclosure Authorized The World Bank Heilongjiang Cold Weather Smart Public Transportation System (P133114) ABBREVIATIONS AND ACRONYMS CPS Country Partnership Strategy EA Environment Assessment EIA Environmental Impact Assessment EMP Environment Management Plan FM Financial Management FSR Feasibility Study Report GHG Greenhouse Gas HBC Harbin Bus Company HMG Harbin Municipal Government HPAO Heilongjiang Provincial Audit Office HSR High Speed Rail HPFD Heilongjiang Provincial Finance Department ICM Integrated Corridor Management ITS Intelligent Transport System MBC Mudanjiang Bus Company MMG Mudanjiang Municipal Government MOT Ministry of Transport NDRC National Development and Reform Commission PDO Project Development Objective PMO Project Management Office RP Resettlement Plan RPF Resettlement Policy Framework SA Social Assessment The World Bank Heilongjiang Cold Weather Smart Public Transportation System (P133114) BASIC DATA Product Information Project ID Financing Instrument P133114 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 28-Mar-2014 30-Jun-2020 Organizations Borrower Responsible Agency Heilongjiang Development and Reform People's Republic of China Commission,Harbin Project Management Office,Mudanjiang Project Management Office Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to upgrade the quality and efficiency of public transport services in selected public transport corridors of the project cities. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-83460 28-Mar-2014 21-May-2014 18-Aug-2014 30-Jun-2020 200.00 64.02 135.98 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Heilongjiang Cold Weather Smart Public Transportation System (P133114) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The US$200 million IBRD loan for the Heilongjiang Cold Weather Smart Public Transportation Project was approved on March 28, 2014 and became effective on August 18, 2014; the closing date of the loan is June 30, 2020. The objective of the project is to upgrade the quality and efficiency of public transport services in selected public transport corridors of the project cities. The project includes Harbin City and Mudanjiang City, and comprises five main components: (i) Public Transport Corridor Improvement; (ii) Public Transport Infrastructure Improvement; (iii) Traffic Management and Safety Improvement; (iv) Emergency Response and Road Maintenance; and (v) Capacity Building. 2. Project implementation is making good progress. The project ratings of Progress towards achieving PDO and Overall Implementation Progress are Moderate Satisfactory. There have been some delays in the implementation of civil works contracts, especially in Component 1 and Component 2, as explained below. As of August 26, 2019, only about 32% of the loan had disbursed, although Harbin and Mudanjiang PMOs have respectively awarded about 78% and 95% of their contracts by value, and completed about 63% and 79% of the investments (as shown in Annex 2). The main reasons for the gap between disbursement and physical progress include delays in the implementation of civil works contracts, as well as the low disbursement percentage for civil works contracts. The proposed restructuring will address this by increasing the disbursement percentage. 3. Implementation of Component 1: Public Transport Corridor Improvement. This component includes improvements to three corridors in Harbin and six corridors in Mudanjiang. To date, one corridor (Xinyang Road) has been completed in Harbin. It is proposed to replace the Hongqi Avenue and Youyi Road corridors by the Nanzhi Road and Changjiang Road corridors (please refer to para 9 for explanation). The updated feasibility study report (FSR), the environmental impact assessment report (EIA), environment management plan (EMP) and social assessment report (SA) have been approved and disclosed. In Mudanjiang, three of the six corridors have been completed, including Taiping Road, Xin’an Avenue and Xisantiao Road. Xisantiao Road was built using counterpart funds with a design different from the appraised design as a result of urgent needs. It is therefore proposed to drop the Xisantiao Road corridor from the project as part of the proposed restructuring. The remaining three corridors in Mudanjiang are planned to be completed by the end of 2019. 4. Implementation of Component 2: Public Transport Infrastructure Improvement. The Harbin sub-component is being implemented in a satisfactory manner. The Xiangbin road interchange and Hexiedajie terminal are under construction, and the Qunlidiyadao terminal is under the bidding process. All clean-fuel buses have been procured and are in service. Implementation of the advanced public transport system is on track. In Mudanjiang, all clean fuel buses have been procured, and the traffic safety education center has been built using counterpart funds. However, the remaining activities, including the construction of a public transport interchange, three bus terminals, and a bus maintenance facility are experiencing delays and changes due to various reasons (see para 10). It is proposed to drop some of these activities from the Mudanjiang sub-component as part of this restructuring. The existing traffic safety education center in Mudanjiang is now functioning, and the renovation of the bus driver training center will be completed by the end of 2019. 5. Implementation of Component 3: Traffic Management and Safety Improvement. This component mainly includes the installation of equipment for traffic management and safety. The Harbin sub-component is experiencing delays; however, the procurement and installation of these activities will be completed before the loan closing date. The Mudanjiang sub-component has been implemented smoothly: the traffic control center has been established and is responsible for traffic monitoring, violation detection, and traffic guidance as designed. The World Bank Heilongjiang Cold Weather Smart Public Transportation System (P133114) 6. Implementation of Component 4: Emergency Response and Road Maintenance. This component is only for the city of Harbin and has been completed. Emergency response and road maintenance equipment and devices have been procured and are in service in a satisfactory manner. 7. Implementation of Component 5: Capacity Building. The key urban transport related technical assistance studies will support the achievement of the PDO. These include: city wide transport system plan for cold weather cities; policy reform study for public transport operation subsidies; strategic study for state-owned bus corporation management; and travel demand management policies. All technical assistance activities under this component are under implementation and are expected to be completed by the loan closing date. These studies will strengthen the institutional capacity of the local municipalities to develop solutions unique to the challenge of public transport in extremely cold weather condition. Harbin PMO and Mudanjiang PMO have hired project management companies to assist them during project implementation. 8. The project is in compliance with Bank fiduciary and safeguards policies, as well as loan covenants. Risk ratings for fiduciary and environment and social are both rated as Moderate. The environmental assessment category will remain at B for this restructuring. There are no overdue audit reports and no unresolved issues highlighted by auditors. B. Rationale for Restructuring 9. Bus corridors in Harbin. With the rapid development of Harbin city, the Metro network was planned to accommodate the increase in travel demand along the busiest corridors. Hongqi Avenue and Youyi Road overlap with the alignment of Metro Line 3. Considering that passengers on these two bus corridors will be carried mainly by the Metro system in the future, and the potential risks in coordinating construction with the Metro, Harbin PMO proposed to drop Hongqi Avenue and Youyi Road. In 2016, the Harbin Municipality, together with the Bank team, jointly identified two new bus corridors with high priority to be improved, which have similar functions and also carry high volume of passengers. These two new corridors are the Nanzhi Road and Changjiang Road. The main works for these two corridors includes improvement within the existing road width; therefore, no land acquisition and resettlement will occur. The updated FSR, EIA, EMP, and SA of Harbin components were reviewed by the Bank and are found acceptable in 2018. The updated EIA, EMP and SA were disclosed locally in Harbin on March 27, 2019, and were disclosed through the World Bank’s ImageBank on June 13, 2019 for public disclosure. The prolonged
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