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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 45059-CN PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED LOAN IN THE AMOUNT OF US$100 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR THE ANHUI MEDIUM CITIES URBAN TRANSPORT PROJECT Public Disclosure Authorized April 14, 2010 China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective June 2009) Currency Unit = RMB or Chinese Yuan US$1 = 6.8 RMB FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS APAO Anhui Provincial Audit Office MBD Model bidding documents APFB Anhui Provincial Finance Bureau MFB Municipal finance bureau APMO Anhui Project Management Office MV Motorized vehicles BRT Bus rapid transit NCB National competitive bidding CQS Consultant qualifications selection NGO Non-governmental organization DA Designated account NMV Non-motorized vehicles DO Development objective NPV Net present value EA Environmental assessment OP Operational policy EIA Environmental impact assessment PMO Project management office EIRR Economic internal rate of return PT Public transport EMP Environmental management plan QBS Quality-based selection FM Financial management QCBS Quality- and cost-based selection FSL Fixed-spread loan RAP Resettlement action plan IC Integrated corridor development SBD Standard bidding document ICB International competitive bidding SOE State-owned enterprise I&M Inspection and maintenance TS Traffic safety and management LA Local access and freight UNDB United Nations Development Business LG Leading group VSL Variable-spread loan Vice President: James W. Adams Country Manager/Director: Klaus Rohland Sector Managers: Ede Ijjasz-Vasquez (EASCS) and Vijay Jagannathan (EASIN) Task Team Leader: Shomik Mehndiratta CHINA ANHUI MEDIUM CITIES URBAN TRANSPORT PROJECT CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 A. Country and Sector Issues ................................................................................................... 1 B. Rationale for Bank Involvement ......................................................................................... 3 C. Higher Level Objectives to Which the Project Contributes................................................ 3 II. PROJECT DESCRIPTION ................................................................................................. 3 A. Lending Instrument ............................................................................................................. 3 B. Project Development Objective and Key Indicators ........................................................... 3 C. Project Components ............................................................................................................ 4 D. Lessons Learned and Reflected in the Project Design ........................................................ 4 E. Alternatives Considered and Reasons for Rejection ........................................................... 5 III. IMPLEMENTATION ...................................................................................................... 6 A. Institutional and Implementation Arrangements ................................................................ 6 B. Monitoring and Evaluation of Outcomes/Results ............................................................... 7 C. Sustainability....................................................................................................................... 7 D. Critical Risks and Possible Controversial Aspects ............................................................. 8 E. Loan Conditions and Covenants ......................................................................................... 9 F. Reporting and Monitoring................................................................................................... 9 IV. APPRAISAL SUMMARY ............................................................................................... 9 A. Economic and Financial Analyses ...................................................................................... 9 B. Technical ........................................................................................................................... 10 C. Fiduciary ........................................................................................................................... 11 D. Social................................................................................................................................. 12 E. Environment ...................................................................................................................... 13 F. Safeguard Policies ............................................................................................................. 14 G. Policy Exceptions and Readiness...................................................................................... 15 Annex 1: Country and Sector or Program Background ......................................................... 17 Annex 2: Major Related Projects Financed by the Bank and other Agencies ...................... 32 Annex 3: Results Framework and Monitoring ....................................................................... 33 Annex 4: Detailed Project Description ...................................................................................... 40 Annex 5: Project Costs ............................................................................................................... 50 Annex 6: Implementation Arrangements ................................................................................ 56 Annex 7: Financial Management and Disbursement Arrangements ..................................... 60 Annex 8: Procurement Arrangements ...................................................................................... 69 Annex 9: Economic and Financial Analysis ............................................................................. 75 Annex 10: Safeguard Policies ..................................................................................................... 84 Annex 11: Project Preparation and Supervision ..................................................................... 91 Annex 12: Documents in the Project File ................................................................................. 93 Annex 13: Statement of Loans and Credits .............................................................................. 95 Annex 14: Country at a Glance ................................................................................................. 99 Annex 15: Maps......................................................................................................................... 103 CHINA ANHUI MEDIUM CITIES URBAN TRANSPORT PROJECT PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC EASCS Date: April 14, 2010 Team Leader: Shomik Raj Mehndiratta Country Director: Klaus Rohland Sectors: General transportation sector (100%) Sector Manager: Ede Jorge Ijjasz-Vasquez Themes: Other urban development (P) (EASCS) and Vijay Jagannathan (EASIN) Project ID: P111421 Environmental screening category: Partial Assessment Lending Instrument: Specific Investment Loan Project Financing Data [X] Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (US$m.): 100.00 Proposed terms: Variable-Spread Loan repaid over twenty-five years including a five year grace period. Financing Plan (US$m) Source Local Foreign Total Borrower 201.0 0.0 201.0 International Bank for Reconstruction and 0.0 100.0 100.0 Development Total: 201.0 100.0 301.0 Borrower: People's Republic of China, represented by Ministry of Finance Beijing China Responsible Agency: Anhui Provincial Finance Bureau No. 238 Funanxi Road Hefei, Anhui China Tel: +86 551 5100160 Fax: +86 551 5100162 Postal Code: 230061 Estimated disbursements (Bank FY/$m) FY 10 11 12 13 14 15 16 Annual 2 10 18 15 15 20 20 Cumulative 2 12 30 45 60 80 100 Project implementation period: Start May 15, 2010 End: July 31, 2015 Expected effectiveness date: August 15, 2010 Expected closing date: January 31, 2016 Does the project depart from the CAS in content or other significant respects? [ ]Yes [X] No Ref. PAD I.C. Does the project require any exceptions from Bank policies? [X]Yes [ ] No Ref. PAD IV.G. The project has obtained a waiver from Bank Management with regards to requirement relating to translations of the safeguards reports from Chinese into English. English language consolidated RAPs and EA reports have been prepared, reviewed and disclosed through the Bank's Infoshop. Have these been approved by Bank management? [X]Yes [ ] No Is approval for any policy exception sought from the Board? [ ]Yes [X] No Does the project include any critical risks rated “substantial” or “high”? [ ]Yes [X] No Ref. PAD III.E. Does the project meet the Regional criteria for readiness for implementation? [X]Yes [ ] No Ref. PAD IV.G. Project development objective Ref. PAD II.C., Technical Annex 3 The development objective of the project is to improve mobility on selected main corridors of the municipalities of Anqing, Huaibei, Lu’an and Wuhu in Anhui Province in a safe and efficient
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