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World Bank Document Document of The World Bank Public Disclosure Authorized Report No: ICR00001699 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-47650) ON A LOAN Public Disclosure Authorized IN THE AMOUNT OF US$100 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A INNER MONGOLIA HIGHWAY AND TRADE CORRIDOR PROJECT Public Disclosure Authorized June 29, 2011 Public Disclosure Authorized China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region CURRENCY EQUIVALENTS Currency = Renminbi Yuan (RMB Y) Appraisal Effective January 2005 RMB Y 1.00 = US$ 0.12 US$ 1.00 = Y8.28 Completion Effective June 2010 RMB Y 1.00 = US$0.14 US$ 1.00 = Y 7.25 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS BRFT = Border Roads for Trade CAS = Country Assistance Strategy CTT = Cargo Transfer Terminal EA = Environmental Assessment EAP = Environmental Action Plan EIA = Environmental Impact Assessment E&M = Electrical and Mechanical HMH = Hailar Manzhouli Highway HMEMC = Hulunbeier Municipal Environmental Monitoring Center ICR = Implementation Completion and Results Report ISR = Implementation Supervision Report IST = Institutional Strengthening and Training IC = International Consultant IMCD = Inner Mongolia Communications Department LACI = Loan Administration Change Initiative MOC = Ministry of Communications MOF = Ministry of Finance NTHS = National Trunk Highway System OED = Operations Evaluation Department PAD = Project Appraisal Document PCI = Per Capita Income PCD = Provincial Communications Department PIC = Public Information Center PMO = Project Management Office QAG = Quality Assurance Group RAP = Resettlement Action Plan RDB = Road Data Bank RMF = Road Maintenance Fee RUC = Road User Costs SDPC = State Development and Planning Commission TAP = Technical Assistance Program TLS = Tongda Logistic Service Co. Ltd VOC = Vehicle Operating Cost Vice President: James W. Adams, EAPVP Country Director: Klaus Rohland, EACCF Ede Jorge Ijjasz-Vasquez, EASCS Sector Managers: Vijay Jagannathan, EASIN Project Team Leader: Simon David Ellis ICR Team Leader: Simon David Ellis CHINA INNER MONGOLIA HIGHWAY AND TRADE CORRIDOR 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 ............................................................................................ 9 4. Assessment of Risk to Development Outcome......................................................... 13 5. Assessment of Bank and Borrower Performance ..................................................... 14 6. Lessons Learned........................................................................................................ 16 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners........... 17 Annex 1. Project Costs and Financing.......................................................................... 18 Annex 2. Outputs by Component.................................................................................. 19 Annex 3. Economic and Financial Analysis ................................................................. 25 Annex 4. Bank Lending and Implementation Support/Supervision Processes............. 28 Annex 5. Beneficiary Survey Results ........................................................................... 30 Annex 6. Stakeholder Workshop Report and Results................................................... 31 Annex 7. Summary of Borrower’s ICR and/or Comments on Draft ICR ..................... 32 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders....................... 42 Annex 9. List of Supporting Documents ...................................................................... 43 MAPS 33237R and 33238 A. Basic Information Inner Mongolia Country: China Project Name: Highway and Trade Corridor Project ID: P068752 L/C/TF Number(s): IBRD-47650 ICR Date: 06/29/2011 ICR Type: Core ICR PEOPLE’S REPUBLIC Lending Instrument: SIL Borrower: OF CHINA Original Total USD 100.0M Disbursed Amount: USD 100.0M Commitment: Revised Amount: USD 100.0M Environmental Category: A Implementing Agencies: Inner Mongolia Communications Department Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 12/17/2003 Effectiveness: 07/21/2005 07/21/2005 Appraisal: 09/27/2004 Restructuring(s): 06/05/2007 Approval: 02/15/2005 Mid-term Review: Closing: 06/30/2010 06/30/2010 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Moderate Bank Performance: Satisfactory Borrower Performance: Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Moderately Satisfactory Government: Satisfactory Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Satisfactory Performance: Performance: 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 Yes None time (Yes/No): Supervision (QSA): DO rating before Moderately Closing/Inactive status: Satisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Roads and highways 99 99 Sub-national government administration 1 1 Theme Code (as % of total Bank financing) Administrative and civil service reform 33 33 Trade facilitation and market access 67 67 E. Bank Staff Positions At ICR At Approval Vice President: James W. Adams Jemal-ud-din Kassum Country Director: Hsiao-Yun Elaine Sun David R. Dollar Sector Manager: Ede Jorge Ijjasz-Vasquez Jitendra N. Bajpai Project Team Leader: Simon David Ellis Supee Teravaninthorn ICR Team Leader: Simon David Ellis ICR Primary Author: Alain M. Dube F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The main objective of the project is to sustain and promote the development of cross- border trade between China on one hand and Russia and Mongolia on the other by improving transport infrastructure and logistics. These improvements, in turn, will lower transport costs, increase income from external trade, and raise incomes in Inner Mongolia, the country’s third-largest province and one of the poorest provinces of the western 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 : Reduced travel time along the HMH corridor (min.) Value quantitative or 180 100 120 Qualitative) Date achieved 12/31/2003 12/31/2009 12/31/2009 Comments Because of safety issues, the WB requested that reduced speed be implemented (incl. % in specific urban area crossed by HMH, hence contributing to the less than achievement) anticipated reduction in travel time. Indicator 2 : Increased volume of cargo for import/export at the border (1,000 tons) Value quantitative or 394.2/43.8 850/100 12.4/218.9 Qualitative) Date achieved 12/31/2003 12/31/2009 12/31/2009 2003 baseline import value (394.2) was significantly overestimated. Actual 2003 import volume was 89.3 kiloton. The 86% reduction is related to deteriorating Comments trade relations between China and Russia including the clamping down on (incl. % informal trade, the general economic climate, the unavailability of the CTT in achievement) Hailar and increased travel time between Hailar and Manzhouli during construction works. Indicator 3 : Increased tonnage of cargo handled at CTT (1,000 tons) Value quantitative or 0 350 0 Qualitative) Date achieved 12/31/2003 12/31/2009 12/31/2009 Comments PAD baseline value is 72 which is obviously an error. Real value is 0 since CTT (incl. % could not handle cargo in 2003. CTT had not opened at time of writing this ICR. achievement) Indicator 4 : Increased Cargo Volume (import/export) on railway (1,000 tons) Value quantitative or 9180/1820 12500/2450 21315/2365 Qualitative) Date achieved 12/31/2003 12/31/2009 12/31/2009 Comments (incl. % achievement) Indicator 5 : Adjusted import share of trade cargo by mode (RW/HW) (1,000 tons) Value quantitative or 95.9/4.1 93.7/6.3 99.9/0.1 Qualitative) Date achieved 12/31/2005 12/31/2009 12/31/2009 Comments In addition to the comments formulated in indicator 2, it is suggested that the (incl. % 2008 high fuel prices has also contributed to the shift from truck to rail for both achievement) import and export cargo volume. Indicator 6 : Adjusted export share of trade by mode (RW/HW)(1,000 tons) Value quantitative or 97.4/2.6 96.1/3.9 91.5/8.5 Qualitative) Date achieved 12/31/2003 12/31/2009 12/31/2009 Comments In addition to the comments formulated in indicator 2, it is suggested that the (incl. % 2008 high fuel price has also contributed to the shift from truck to rail for both achievement) import and export cargo volume. Increased AADT on HMH (MTE/day) 1) Hailar-Chenbaerhu 2) Chenbaerhu-
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