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World Bank Document Document of The World Bank Public Disclosure Authorized Report No:ICR000032 IMPLEMENTATION COMPLETION AND RESULTS REPORT ( IBRD-43560 ) Public Disclosure Authorized ON A LOAN IN THE AMOUNT OF US$ 225 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A TRI-PROVINCIAL HIGHWAY PROJECT Public Disclosure Authorized November 19, 2007 China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective June 6, 2007) Currency Unit = RMB1.00 = 0.13085US$ US$ 1.00 = 7.64260 RMB FISCAL YEAR January 1-December 31. ABBREVIATIONS AND ACRONYM ADT - Average Daily Traffic BDH - Baotou-Dongsheng Highway BDR - Baotou-Dongsheng Road BFH - Baiyinchagan-Fengzhen Highway CAS - Country Assistance Strategy CPS Country Partnership Strategy EAP - Environmental Action Plan EIA - Environmental Impact Assessment ENPV - Economic Net Present Value EIRR - Economic Internal Rate of Return FIDIC - Fédération Internationale des Ingénieurs-Conseils FIRR - Financial Internal Rate of Return FNPV - Financial Net Present Value GDP - Gross Domestic Product GOVAI- Gross Output Value of Agriculture and Industry GPCD - Gansu Provincial Communications Department GWH - Guyaozi-Wangquanliang Highway HTH - Hekou-Tungouwan Highway ICB - International Competitive Bidding ICR - Implementation Completion and Results Report IMCD - Inner Mongolia Communications Department LZE - Liugouhe-Zhonghe Expressway MOC - Ministry of Communications MOF - Ministry of Finance MTE - Medium Truck Equivalent NCB - National Competitive Bidding NCD - Ningxia Communications Department NDRC - National Development and Reform Commission NTHS - National Trunk Highway System PAD - Project Appraisal Document PMO - Project Management Office RAP - Resettlement Action Plan RIPA - Roads Improvement Program for Poverty Alleviation RMB - Renmimbi (China’s currency) XJH - Xujiamo-Jiepaicun Highway YXH - Yanchi-Xingren Highway Vice President: James W. Adams Country Director: David R. Dollar Sector Manager (Acting): Magdolna Lovei Project Team Leader: Boping Gao ICR Team Leader: Wenlai Zhang CHINA Cn-Tri-Provincial Highway 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......................................................... 15 5. Assessment of Bank and Borrower Performance ..................................................... 15 6. Lessons Learned ..................................................................................................... 166 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................................................................. 21 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 26 Annex 5. Beneficiary Survey Results........................................................................... 27 Annex 6. Stakeholder Workshop Report and Results................................................... 27 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR..................... 28 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders....................... 35 Annex 9. List of Supporting Documents ...................................................................... 36 MAP-IBRD29472: National Trunk Highway System MAP-IBRD29473: Inna Mongolia Highway Transport System MAP-IBRD29474: Inner Mongolia-Detail of Project Roads MAP-IBRD29475: Gansu Highway Transport System MAP-IBRD29476: Gansu-Detail of Project Roads MAP-IBRD29477: Ningxia Highway Transport System A. Basic Information Country: China Project Name: CN-Tri-Provincial Hwy Project ID: P045788 L/C/TF Number(s): IBRD-43560 ICR Date: 12/27/2007 ICR Type: Core ICR PEOPLE'S REPUBLIC Lending Instrument: SIL Borrower: OF CHINA Original Total USD 230.0M Disbursed Amount: USD 225.0M Commitment: Environmental Category: A Implementing Agencies: Gansu Communications Department Ningxia Communications Department Inner Mongolia Communications Department Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 03/19/1997 Effectiveness: 03/18/1999 03/18/1999 Appraisal: 04/14/1998 Restructuring(s): Approval: 06/23/1998 Mid-term Review: Closing: 06/30/2005 06/30/2007 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: 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 84 95 Sub-national government administration 16 5 Theme Code (Primary/Secondary) Access to urban services and housing Primary Primary Infrastructure services for private sector development Secondary Secondary Municipal governance and institution building Primary Primary Rural services and infrastructure Primary Primary E. Bank Staff Positions At ICR At Approval Vice President: James W. Adams Jean-Michel Severino Country Director: David R. Dollar Yukon Huang Sector Manager: Junhui Wu Jeffrey S. Gutman Project Team Leader: Wenlai Zhang Hatim M. Hajj ICR Team Leader: Wenlai Zhang ICR Primary Author: Kek Choo Chung F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The objective of the Project is to assist the Borrower and the Project Provinces: (a) to increase the efficiency and safety of traffic in highway priority corridors in order to facilitate faster socio-economic development; (b) to provide improved access to targeted poor counties; (c) to improve highway sector institutional capacity; and (d) to improve the safety of road transport. ii The project development objective found in the Project Appraisal Document is expressed differently from that stated above which is obtained from Schedule 2 of the Loan Agreement. The difference, however, is only of verbal expression and not of substance. Revised Project Development Objectives (as approved by original approving authority) The development objectives remained unchanged throughout the implementation of the Project. (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 Average daily traffic on proposed and existing high priority roads increase over Indicator 1 : time (mte per day) BDH-7897mte/d 14280 19581 BFH - 1335mte/d 3008 2327 Value LZH - 5274mte/d 8027 10262 quantitative or XJH - 3778mte/d 6200 4188 Qualitative) GWH - 1834mte/d 4533 977 YXH - 745mte/d 1742 1677 Date achieved 12/31/1997 12/31/2005 12/31/2005 Actual traffic on the two most important highways, BDH and LZE exceeded Comments target values by 37% and 28% respectively. The remaining highways were (incl. % close to the target values or with high growth rates except for GWH. (See section achievement) 3.2 of main report.) Average speed on proposed and existing high priority roads improves over time Indicator 2 : (km per hour) Value Ranging from 33- Ranging from 50- quantitative or Ranging from 30-40 74 82 Qualitative) Date achieved 12/31/1997 12/31/2005 12/31/2005 Comments (incl. % Average speed on highways improved 12% to 50%. achievement) Traffic accident rates on proposed and existing high priority road are reduced Indicator 3 : (fatalities per 10 million vehicle km) Value Ranging from 4.4 Ranging from 0.4- quantitative or Ranging from 7-11 to 5.7 5.0 Qualitative) Date achieved 12/31/1997 12/31/2005 12/31/2005 Comments Fatalities on project highways were about 12% less than targeted on completion (incl. % of the Project. achievement) Indicator 4 : Gross output value of agriculture and industry increases (RMB billion) iii BDH and BFH 68.9 110.6 27.6 Value Liugouhe-Jiepaicun 44.5 69.7 quantitative or corridor 22.9 Qualitative) Lingwi-Yanchi-Tongxing 3.3 4.5 corridor 1.4 Date achieved 12/31/1997 12/31/2005 12/31/2005 Comments GOVAI on main corridors in the 3 project provinces exceeded targets by 60% in (incl. % Inner Mongolia, 57% in Gansu and 36% in Ningxia achievement) Indicator 5 : Sum daily
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