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FUJIAN HIGHWAY SECTOR INVESTMENT PROJECT Public Disclosure Authorized Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 3520 1-CN PROJECT APPRAISAL DOCUMENT Public Disclosure Authorized ON A PROPOSED LOAN IN THE AMOUNT OF US$320 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A FUJIAN HIGHWAY SECTOR INVESTMENT PROJECT Public Disclosure Authorized SEPTEMBER 15,2006 Transport Sector Unit East Asia and Pacific Region This document has a restricted distribution and may be used by recipients only in the Public Disclosure Authorized performance of their official duties. Its contents may not otherwise be disclosed without World CURRENCY EQUIVALENTS (Exchange Rate Effective May 4,2006) Currency Unit = RMB Yuan RMB Yuan 1-00 = US$0.124 US$ = RMBYuan8.05 FISCAL YEAR January 1 - December31 ABBREVIATIONS AND ACRONYMS AADT Average Annual Daily Traffic GOC Government of China ADB Asian Development Bank HDM Highway Design and Maintenance Model BMS Bridge Management System HMPP Highways Maintenance Pilot Program BOT Build Operate Transfer ICB International Competitive Bidding CAS Country Assistance Strategy ICR Implementation Completion Report CNEN China National Expressway Network ISP Institutional Strengthening Program CPS Country Partnership Strategy LA&R Land Acquisition and Resettlement DA Designated Account M&E Monitoring and Evaluation DOFWBP = Director’s Office for World Bank Project MNDF Minority Nationalities Development EA - Environmental Assessment Framework EAP - Environmental Action Plan MOC Ministry of Communications EASTR = World Bank East Asia and Pacific Region MOF Ministry of Finance Transport Sector Unit MTE Medium Truck Equivalent EIA - Environmental Impact Assessment mu Chinese measure of land area EIRR - Economic Internal Rate of Return (1 5 muhectare) EMF - Environmental Management Framework NDRC National Development and Reform EMP - Environmental Management Plan Commission E&M - Electrical and Mechanical NPV Net Present Value EPB - Environmental Protection Bureau PAD Project Appraisal Document EPO - Environmental Protection Office PAP Project Affected Persons FDRC = Fujian Development and Reform PCU Passenger Car Unit Commission PMS Pavement Management System FHAB = Fujian Highway Administration Bureau PRC People’s Republic of China FHP 1 - First Fujian Highway Project PRO Project Resettlement Office FHP2 - Second Fujian Highway Project RAP Resettlement Action Plan FHSIP = Fujian Highway Sector Investment Project RPF Resettlement Policy Framework FMM - Financial Management Manual RRIF Rural Roads Implementation Framework FMR - Financial Management Report RRIP Rural Roads Improvement Program FPAO = Fujian Provincial Audit Office SBD Standard Bidding Documents FPCD = Fuj ian Provincial Communications SEPA State Environmental Protection Department Administration FPECD = Fujian Provincial Expressway Construction S WAp Sector Wide Approach Directorate TPRI Transport Planning and Research Institute FPFB - Fujian Provincial Finance Bureau voc Vehicle Operating Cost FPTQIS = Fujian Provincial Transport Quality YWE Yong’an - Wuping Expressway Inspection Stations Vice President: James W. Adams Country Managermirector: David R. Dollar Sector Manager: Jitendra N. Bajpai Task Team Leader: Aurelio Menendez CHINA Fujian Highway Sector Investment Project CONTENTS Page A . STRATEGIC CONTEXT AND RATIONALE .................................................................. 5 1. Country and sector issues .................................................................................................... 5 2 . Rationale for Bank involvement .......................................................................................... 7 3 . Higher level objectives to which the project contributes .................................................... 7 B. PROJECT DESCRIPTION.................................................................................................. 8 1. Lending instrument .............................................................................................................. 8 2 . Project development objective and key indicators .............................................................. 8 3 . Project components .............................................................................................................. 9 4 . Lessons learned and reflected in the project design .......................................................... 10 5 . Alternatives considered and reasons for rejection............................................................. 11 C . IMPLEMENTATION......................................................................................................... 12 1. Partnership arrangements .................................................................................................. 12 2 . Institutional and implementation arrangements ................................................................ 12 3 . Monitoring and evaluation of outcomes/results ................................................................ 14 4. Sustainability ..................................................................................................................... 16 5 . Critical risks and possible controversial aspects ............................................................... 17 6 . Loadcredit conditions and covenants ............................................................................... 18 D. APPRAISAL SUMMARY .................................................................................................. 19 1. Economic and financial analyses ...................................................................................... -19 2 . Technical ........................................................................................................................... 20 3 . Fiduciary ............................................................................................................................ 21 4 . Social ................................................................................................................................. 22 5 . Environment ..................................................................................................................... -23 .. 6 . Safeguard policies.............................................................................................................. 24 7 . Policy Exceptions and Readiness ...................................................................................... 24 Annex 1: Country and Sector or Program Background.......................................................... 25 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ..................32 Annex 3: Results Framework and Monitoring......................................................................... 34 Annex 4: Detailed Project Description ...................................................................................... 37 Annex 5: Project Costs ................................................................................................................ 42 Annex 6: Implementation Arrangements .................................................................................. 43 Annex 7: Financial Management and Disbursement Arrangements ..................................... 50 Annex 8: Procurement Arrangements ....................................................................................... 57 Annex 9: Economic and Financial Analysis .............................................................................. 63 Annex 10: Safeguard Policy Issues ............................................................................................. 79 Annex 11: Project Preparation and Supervision...................................................................... 93 Annex 12: Documents in the Project File .................................................................................. 95 Annex 13: Statement of Loans and Credits............................................................................... 96 Annex 14: Country at a Glance ................................................................................................ 101 Annex 15: Maps ......................................................................................................................... 103 CHINA FUJIAN HIGHWAY SECTOR INVESTMENT PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC EASTR Date: September 15,2006 Team Leader: Aurelio Menendez Country Director: David R. Dollar Sectors: Roads and highways (1 00%) Sector ManagerDirector: Jitendra N. Bajpai Themes: Regional integration (P);Rural services and infrastructure (P);Trade facilitation and market access (S);Infrastructure services for private sector development (S) Project ID: PO91020 Environmental screening category: Full Assessment Lending Instrument: Specific Investment Loan [XI Loan [ ] Credit [ 3 Grant [ ] Guarantee [ 3 Other: For Loans/Credits/Others: Total Bank financing (US$m.): 320.00 Pronosed terms: VSL__ Financing Plan (US$m) Source Local Foreign Total BORROWER 1,170.00 0.00 1,170.00 INTERNATIONAL BANK FOR 79.00 241.OO 320.00 RECONSTRUCTION AND DEVELOPMENT Total: 1.249.00 241 -00 1,490.00 Borrower: PEOPLE’S REPUBLIC OF CHINA Responsible Agency: Fujian Provincial Communications Department (FPCD) 19th Floor, Fujian Comms. Admn. Building 18 Dongshui Road Fuzhou, Fujian Province 350001 People’s Republic of China Tel: 86-591-8707-7448 Fax: 86-591-8707-7377 shbafjjt,gov.cn :Y 2007 2008 2009 2010 2011 2012 innual 23.98 56.56 76.48 79.22 59.53 24.23 hmulative 23.98 80.54 157.02 236.24 295.77 320.00 Project
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