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PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB2095 Project Name Transport Project Region EAST ASIA AND PACIFIC

Public Disclosure Authorized Sector Roads and highways (80%); General transportation sector (10%); Sub-national government administration (10%) Project ID P093963 Borrower(s) PEOPLE’S REPUBLIC OF Implementing Agency People’s Republic of China, Ministry of Finance San Li He West District China 100820 Tel: +86(0)10-6855-1123 Fax: +86(0)10-6855-1125 [email protected]

Public Disclosure Authorized Guiyang Transport Project, Office of the World Bank Loan Projects No. 185 West Yan’an Rd. China 550003 Tel: +86(0)851-650-7047 Fax: +86(0)851-650-7047 [email protected] Environment Category [X] A [ ] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared January 18, 2006 Estimated Date of October 16, 2006 Appraisal Authorization Estimated Date of Board April 6, 2007 Public Disclosure Authorized Approval

1. Key development issues and rationale for Bank involvement

Guiyang Municipality is the capital of Province, an extremely poor province which ranks the lowest in GDP per capita within China. Historically Guizhou has developed on the basis of its natural resources, adding some processing over time. Its development has been assisted by the State which has established a number of major enterprises in the Province. Guizhou’s resources and State interventions have come together in large resource-based industries. The potential of this development model is now coming to an end and Guizhou will have to find new sources of economic growth and diversification. The development of its major urban center, Guiyang, will be one such strength. Within Guizhou Province, Guiyang City is Public Disclosure Authorized clearly the political, economic, cultural, and transport center. However, among cities in south center China, Guiyang is last on many economic measures. Guiyang Municipality encompasses three primarily rural counties, Xiuwen, Xifeng, and Kaiyang; one county level city Qingzhen; four generally peri-urban districts (Wudang, Baiyan, Huaxi, and Xiaohe), and the two districts, Nanming and Yunyan, that make up the urban core of Guiyang City. The Municipality has a total area of 8,034 km2 and a population of approximately 3.4 million persons. The Municipality is located within a hilly and sometimes mountainous terrain with elevations ranging from 500 to 1,760 meters above sea level. The Municipality’s regional context is characterized by a poor hinterland, distance from major markets, and dependence on small local markets.

Urban Context Guiyang City’s urban development has accelerated in recent years as a result of increasing incomes, real estate development and encouraging growth of a few major emerging markets. The urban development is guided by the ‘Greater Guiyang’ development strategy, approved in December 2003. This strategy aims to build a ‘greater’ Guiyang in three phases: by 2013 achieve an urban built area of 170 square km, and urbanization rate of 60% (of total municipal population); by 2020 an urban built area of 200 square km, and urbanization rate of 65%; and by 2050, Guiyang plans to achieve its modernization goal. The impact of the “Greater Guiyang” strategy on spatial planning is significant, emphasizing the role of transport in urban expansion and laying out an ambitious plan for inter- and intra -city highway and road networks connecting a terrain-constrained core with eight outlying development clusters including a new town, Jinyang.

Included in this plan are several radial connector roads, of which five out of seven have been constructed. This project proposes to construct, from the southeast corner of the urban core to the development zone of Longdongbao, still further to the southeast, one of the two remaining radial connectors. Longdongbao, which includes the Municipal Airport, has been identified in the Municipality’s Urban Master Plan as one of eight development clusters. While some industry already exists, much of Longdongbao has yet to be developed. Plans include a relocated government center (planned for 2008), new residential areas, a university, as well as logistics and trade areas linked by the ring road to the airport and the other development areas, most notably Jinyang.

Given the attractive location, Longdongbao is expected to grow rapidly. Longdongbao’s total planned area is 41 square kilometers and the urban population (excluding an estimated 35,000 college students) is estimated to be 88,000 in 2010 (high-growth scenario of the Longdongbao Zoning Plan, 2005). The area is expected to be fully developed sometime in 2010-2015. The Municipality forecasts that the connector will have an ADT of approximately 15,000 vpd in 2010 and increasing to 31,000 vpd in 2020.

Rural Context Major disparities between the urban core and the rural counties exist and are increasing. Rural incomes in the Municipality are much lower than the incomes of urban households. The net per capita incomes of rural households in the three Guiyang counties and in the county level city of Qinzhen are between 12% and 32% below the national average.

Key to reducing poverty in the rural areas is the stimulation of growth through the provision of an effective transportation system linking the urban core to the hinterland and connecting the municipality to other cities. While Guiyang’s transport links to other cities are improving and its urban transport network is under development, the rural transport network and its connection to the urban core are underdeveloped. Today many of the rural roads are unclassified and inaccessible during bad weather, leaving many villages isolated and economically languishing, particularly in the more mountainous areas.

Guiyang has established and is implementing a progressive rural transport development program, of which this project is a key component. The orientation of this program is growth and the improvement of quality of life by providing market access to county development in rural industry and tourism and facilitating movement of raw materials and specialized crops from primary producers to targeted high-growth industries such as chemicals, metals, machinery and equipment, pharmaceuticals, and electronics. The Guiyang Municipal Road Network Plan (2002-2020) identified roughly 5,000 km of rural roads to be developed by 2020 including those to be developed under this Project. The project also proposes to construct a number of rural passenger depots and freight transfer facilities. Currently, the transfer of goods and people in the rural counties is ad hoc, occurring on the side of village roads in unsafe areas prone to congestion.

Institutional Context – Planning and the Environment The project will take a long term view towards developing a robust quantitative approach to planning, while building a basis for effective management and operation. Interestingly, Guiyang has established itself within China as a strong proponent and leader in the implementation of bold environmental protection initiatives such as establishing itself as the first city in China to implement a circular economy approach. Reflecting this boldness, the project proposes to develop a process whereby strategic urban planning decisions would be made within an environmental context in participation with academia, the private sector, and civil society. A first step towards achieving this goal would be the preparation of a strategic environmental assessment (SEA). Rationale for Bank Support Assisting Guizhou Province and other lagging western provinces through, in part, the development of transportation infrastructure is a key priority of the 11th Five-Year Plan of the Government of China and is consistent with the Bank’s current Country Assistance Strategy objective of “strengthening transport links within and to lagging regions”. In addition, the Guiyang Transport project is a core project of the current Bank’s lending program. This program addresses the “important economic, social, and environmental objectives of China” and focuses “on economically lagging central, western, and northeastern regions”. City-specific Bank lending for the development of urban transport in the central and western regions of China, such as Guizhou Province, is further endorsed in the Bank’s recent policy note on urban transport.

2. Proposed objective(s)

The project's development objective is to promote balanced and sustainable growth through the implementation of transportation infrastructure improvements that increase the access and mobility of Guiyang Municipality’s transport users. This objective is consistent with the Guiyang Urban Master Plan (1996-2010), the Greater Guiyang Development Strategy (GGDS), the Guiyang Highway Network Plan (2000-2020), and the Guiyang Main Terminal Plan (2000- 2010), from which the project components have been identified as priority investments. It is also aligned with the Development and Reform Committee of Guizhou Province’s project goal “to improve the urban and rural road network, to develop the urban area, and advance the urbanization of Guiyang Municipality.”

3. Preliminary description

Component 1 – Youxiao Road – Youzhajie to Xiaobi: The proposed Youxiao road links a proposed development area roughly seven kilometers to the east and adjacent to the airport, Longdongbao, to an area which is the southeast corner of the Guiyang urban core named Youzhajie. The feasibility study will analyze several alternative alignments, all of which will avoid a mountain-top nature area located between the origin and the destination.

Component 2 - Rural Transport: The rural transport component will address the priority investments of the Municipality’s program for improving rural transport and consists of three sub-components: a) rural roads b) rural public passenger depots and freight transfer facilities c) a maintenance facility

Rural Roads The Municipality has proposed over one thousand kilometers of high priority rural roads for consideration under this Project. A prioritization process, to be agreed with the Bank, will be used to select the Project road segments for upgrading from unclassified to either Class III or Class IV.

The Municipality has indicated that in determining the priority rural road segments for Bank financing the following criteria will be applied: a) maximize poverty alleviation through growth b) maximize economic and social benefits c) integration within the rural road network d) limited environmental impact

Rural Passenger Depots and Freight Transfer Facilities The Guiyang Municipality has completed a planning and prioritization process identifying rural passenger and freight facilities to be constructed in or adjacent to rural villages. These are simple facilities providing safe central locations for the efficient movement of goods and people. Guiyang has proposed a three-step project development process for the rural public transport system. The Task Team will assist Guiyang in enhancing this process. a) Consultation with local people and governments b) Comprehensive evaluation to optimize each project c) Detailed design

Jiuchangzhen Maintenance Facility Finally, the construction of a maintenance facility, the Jiuchangzhen Maintenance Facility, will facilitate improved rural road maintenance by primarily reducing response time through the relocation of asphalt storage facilities from the core to a location closer proximity to the demand. The Task Team will also work to enhance the maintenance and operational capacity of the Guiyang Communications Bureau. Component 3 - Transport Terminals: Guiyang wants to develop of two freight terminals: a) Daoyan Container Terminal b) Zhongcaosi (Kaiyingtang) Freight Terminal

The Daoyan Container Terminal and the Zhongcaosi (Kaiyingtang) Freight Terminal are on properties currently owned by the Guiyang Machinery Loading/Unloading Transport Co. and the Guiyang Long Distance Passenger and Transport Co respectively, two major transport state- owned enterprises (SOEs). Their main purpose is to handle containers and the collection, consolidation and distribution of freight for long distance trucking. A re-structuring scheme being considered by the Municipality will provide for the management of the facilities so as to provide fair and competitive to all users. Component 4: Institutional Development: The Municipality wishes to build capacity in two specific and integrated areas. a) Strategic Environmental Assessment (SEA) of Guiyang Municipality’s urban and transport planning. a) Comprehensive Travel Demand Model for Guiyang Municipality These two initiatives are intended to develop the long-term institutional capacity of the municipality and are not intended to support the project’s physical components. The SEA will follow a stepped process and will be completed in parallel with the comprehensive transport demand model. The SEA will begin with a general qualitative assessment of urban development policies and options. Environmental indicators (including energy consumption) derived from data produced by the travel demand model will then be analyzed against varied urban development assumptions and varied transport options and assumptions (modes, motorization rate, and public transport system). Recommendations to minimize environmental impacts and optimize energy consumption will subsequently be integrated into the transport planning process (demand-side management). In addition to supporting the SEA, the travel demand model will assist Guiyang in evaluating the effectiveness of various land use, transportation and corridor development scenarios and developing a sound decision-making process for future transportation choices. A partnership has been formed with the French Development Agency (AFD) for support of these two capacity building goals.

4. Safeguard policies that might apply

Safeguard Policies Triggered Yes No TBD Environmental Assessment (OP/BP 4.01) X The project will include construction of new roads, which will fall into Category A Safeguard Policies Triggered Yes No TBD classification according to OP4.01. A full EA document will be prepared to address relevant environmental issues. Natural Habitats (OP/BP 4.04) X Based upon what is known to date, there is no indication of significant nature habitat value that may trigger this policy. Further investigation will be conducted during the EA preparation stage. Cultural Property (OPN 11.03) X A cultural property survey will be conducted during EA preparation. Details to be determined later. Indigenous Peoples (OP/BP 4.10) X There are minority nationalities in Guizhou Province and Guiyang City. A social assessment will be undertaken to identify the ethnic minorities in the project areas and determine whether or not they are indigenous peoples as defined by the Bank’s OP. Involuntary Resettlement (OP/BP 4.12) X Based on the project proposal, limited land acquisition and some relocation of residential households are expected. An experienced institute has been selected by the Municipality to support the local administrations in preparation of a Resettlement Plan.

5. Tentative financing

Source: ($m.) BORROWER 100 INTERNATIONAL BANK FOR RECONSTRUCTION AND 100 DEVELOPMENT Total 200

6. Contact point Mr. John Scales, Task Team Leader Transport Sector Unit, World Bank Office in People’s Republic of China Tel: +86-10-5861-7731 (direct) Fax: +86-10-5861-7800 E-Mail: [email protected]