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Ankang Road Development Project Document of The World Bank Public Disclosure Authorized Report No: ICR2142 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD 4853-CHA) ON A Public Disclosure Authorized LOAN IN THE AMOUNT OF USD$300 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A SHAANXI ANKANG ROAD DEVELOPMENT PROJECT Public Disclosure Authorized June 13, 2013 China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region Public Disclosure Authorized CURRENCY EQUIVALENTS Currency = Renminbi (RMB) Currency Unit = Yuan (Y) Appraisal Completion Effective January 2007 Effective December 2012 RMB 1.00 = US$ 0.12852 RMB 1.00 = US$0.15874 US$ 1.00 = RMB 7.7807 US$ 1.00 = RMB6.2997 FISCAL YEAR January 1 －December 31 ABBREVIATIONS AND ACRONYMS AADT = annual average daily traffic AM = aide-memoire AMCB = Ankang Municipal Communications Bureau AME = Ankang－Maoba Expressway CAS = country assistance strategy CPS = country partnership strategy EA = executing agency EMF = environment management framework EIRR = economic internal rate of return EMP = environment management plan FFFPO = Foreign Fund Financed Project Office FIRR = financial internal rate of return IA = implementing agency ICB = international competitive bidding ICR = implementation completion and results ISP = institutional strengthening program LAR = land acquisition and resettlement LRIP = local roads improvement program NCB = national competitive bidding PCU = passenger car unit PDO = project development objectives PMS = pavement management system RAP = resettlement action plan RMB = Renminbi (Chinese currency) RP = resettlement plan RPF = resettlement policy framework SPCD = Shaanxi Provincial Communications Department SPFD = Shaanxi Provincial Financial Department SPHB = Shaanxi Provincial Highway Bureau STC = short term consultant Vice President: Mr. Axel van Trotsenburg, EAPVP Country Director: Mr. Klaus Rohland, EACCF, EACCF Sector Manager: Mr. Mark Lundell, EASCS Task Team Leader: Mr. Xiaoke Zhai, EASCS ICR Team Leader: Mr. Xiaoke Zhai, EASCS People’s Republic of China Shaanxi Ankang Road Development 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 ............................................. 5 3. Assessment of Outcomes ......................................................................................... 11 4. Assessment of Risk to Development Outcome ....................................................... 17 5. Assessment of Bank and Borrower Performance .................................................... 18 6. Lessons Learnt ......................................................................................................... 20 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners ......... 21 Annex 1. Project Development Objectives ................................................................... 23 Annex 2. Project Costs, Financing, and Loan Allocation ............................................. 25 Annex 3. Institutional Strengthening Programs ............................................................ 27 Annex 4 Summary of the Land Acquisition and Resettlement ................................... 28 Annex 5. Economic5and Financial Analysis ................................................................ 29 Annex 6. Status of Loan Covenants .............................................................................. 38 Annex 7. Bank Lending and Implementation Support/Supervision Processes ............ 40 Annex 8. Beneficiary Survey Results ........................................................................... 43 Annex 9. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 47 Annex 10. Comments of Cofinanciers and Other Partners/Stakeholders ..................... 49 Annex 11. List of Supporting Documents .................................................................... 50 MAP A. Basic Information Shaanxi Ankang Road Country: China Project Name: Development Project ID: P075613 L/C/TF Number(s): IBRD-48530 ICR Date: 06/17/2013 ICR Type: Core ICR PEOPLE'S REPUBLIC Lending Instrument: SIL Borrower: OF CHINA Original Total USD 300.00M Disbursed Amount: USD 300.00M Commitment: Revised Amount: USD 300.00M Environmental Category: A Implementing Agencies: Shaanxi Provincial Communications Department Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 05/11/2005 Effectiveness: 08/10/2007 08/10/2007 Appraisal: 06/19/2006 Restructuring(s): 06/22/2012 Approval: 03/13/2007 Mid-term Review: 04/22/2010 07/05/2010 Closing: 06/30/2012 12/31/2012 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately 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 90 Sub-national government administration 1 10 Theme Code (as % of total Bank financing) Administrative and civil service reform 17 17 Infrastructure services for private sector development 33 33 Injuries and non-communicable diseases 17 17 Rural services and infrastructure 33 33 E. Bank Staff Positions At ICR At Approval Vice President: Axel van Trotsenburg James W. Adams Country Director: Klaus Rohland David R. Dollar Sector Manager: Mark R. Lundell Jitendra N. Bajpai Project Team Leader: Xiaoke Zhai Aurelio Menendez ICR Team Leader: Xiaoke Zhai ICR Primary Author: Chuntai Zhang F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The objective of the Project is to assist the Borrower in improving passenger and freight traffic flows in an efficient and safe manner along the transport corridor from Ankang to Maoba in Shaanxi Province by: (i) enhancing road infrastructure capacity and network integration along the transport corridor; (ii) increasing accessibility to markets and social services for the lower-income families in the rural areas of Ankang; and (iii) strengthening Shaanxi Provincial Communications Department's capacity in managing ii the increasing number of kilometers of roads under its responsibility in Shaanxi Province and, in particular, within Ankang region. Revised Project Development Objectives (as approved by original approving authority) (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 Indicator 1 : Freight rate for a shipment from Ankang to Wanyuan (RMB/ton) Value quantitative or 143 83 230 Qualitative) Date achieved 12/31/2005 12/31/2011 12/31/2012 Comments The indicator was not achieved. The nominal and real freight rates increased by (incl. % 61% and 20 % respectively due to high fuel and labor price inflation and toll rate achievement) on the new expressway. Indicator 2 : Travel time on existing highway and AME (hours) Value S310: 5.4 5.3 S310: 3.0 quantitative or G210: 4.1 3.7 G210: 2.5 Qualitative) AME: N/A 1.1 AME: 1.0 Date achieved 12/31/2005 12/31/2011 12/31/2012 2005 Comments The indicator was achieved and actually exceeded by a wide margin. Travel time (incl. % on S310 and G210 was reduced about 44% and 39% respectively, comparing achievement) with the targeted values of 1.9% and 9.8%. Accident rate on existing highway and AME (total accidents per year (fatal Indicator 3 : accidents per year)) Value S310: 40(2) 38(2) S310: 36(8) quantitative or G210: 154(26) 149(26) G210: 95(10) Qualitative) AME: N/A 35(13) 126(2) Date achieved 12/31/2005 12/31/2011 12/31/2012 Comments The indicator was partially achieved. The accident reduction on S310 and G210 (incl. % well exceeded the targeted values of 5% and 3% respectively. But the total achievement) accident number on the AME was larger than the targeted. (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 : Traffic Volume (PCU/day) Value S310: 1384 850 S310: 2715 iii (quantitative G210: 3315 2050 G210: 3463 or Qualitative) AME: N/A 5870- 6360 AME: 3049 (AADT-vehicle) Date achieved 12/31/2005 12/31/2011 12/31/2012 Comments The indicator was not achieved due to the impact of removal of toll stations on (incl. % S310 and G210 in 2011 and higher toll rate on the AME. Furthermore, some achievement) connected expressways were still under construction. Average traffic volume on rural roads (no. of vehicles for baseline
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