Document of The World Bank Public Disclosure Authorized Report No: 36308 IMPLEMENTATION COMPLETION REPORT (TF-29447 TF-25511 SCL-44530) ON A LOAN Public Disclosure Authorized IN THE AMOUNT OF US$150 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR A LIAONING URBAN TRANSPORT PROJECT Public Disclosure Authorized June 29, 2006 Transport Sector Unit East Asia and Pacific Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective June 12, 2006) Currency Unit = RMB RMB 1.00 = US$ 0.124 US$ 1.00 = RMB 8.05 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS ASPT - Anshan Public Transport MV - Motorized Vehicle ASTM - Anshan Traffic Management MVECS - Motor Vehicles Emissions Control Strategy ATC - Area Traffic Control NCB - National Competitive Bidding CAS - Country Assistance Strategy NMV - Non-Motorized Vehicle EA - Environmental Assessment NPV - Net Present Value EAP - Environmental Action Plan PAD - Project Appraisal Document EIA - Environmental Impact Assessment PHRD - Policy and Human Resources Development EPB - Environment Protection Bureau Fund ERR - Economic Rate of Return PIP - Project Implementation Plan FSPT - Fushun Public Transport PPMO - Provincial Project Management Office FSTM - Fushun Traffic Management PO - Project Office GOC - Government of China PSR - Project Supervision Report ICB - International Competitive Bidding PT - Public Transport ICR - Implementation Completion Report RAP - Resettlement Action Plan LUCRPO - Liaoning Urban Construction and SOE - Statement of Expenditures Renewal Project Office SYPT - Shenyang Public Transport LUTP - Liaoning Urban Transport Project SYTM - Shenyang Traffic Management MOF - Ministry of Finance VOC - Vehicle Operating Costs Vice President: Jeffrey Gutman, Acting EAPVP Country Director David R. Dollar, EACCF Sector Manager Jitendra N. Bajpai, EASTR Task Team Leader/Task Manager Shomik Mehndiratta, EASTR CHINA CN-Liaoning Urban Transport CONTENTS Page No. 1. Project Data 1 2. Principal Performance Ratings 1 3. Assessment of Development Objective and Design, and of Quality at Entry 2 4. Achievement of Objective and Outputs 7 5. Major Factors Affecting Implementation and Outcome 14 6. Sustainability 15 7. Bank and Borrower Performance 16 8. Lessons Learned 19 9. Partner Comments 21 10. Additional Information 32 Annex 1. Key Performance Indicators/Log Frame Matrix 33 Annex 2. Project Costs and Financing 37 Annex 3. Economic Costs and Benefits 40 Annex 4. Bank Inputs 43 Annex 5. Ratings for Achievement of Objectives/Outputs of Components 46 Annex 6. Ratings of Bank and Borrower Performance 47 Annex 7. List of Supporting Documents 48 MAPS 1. Shenyang Map (IBRD No. 30063R) 2. Fushun Map (IBRD No. 30062R) 3. Anshan Map (IBRD No. 30061R) Project ID: P041890 Project Name: CN-Liaoning Urban Transport Team Leader: Shomik Raj Mehndiratta TL Unit: EASTR ICR Type: Core ICR Report Date: June 29, 2006 1. Project Data Name: CN-Liaoning Urban Transport L/C/TF Number: TF-29447; TF-25511; SCL-44530 Country/Department: CHINA Region: East Asia and Pacific Region Sector/subsector: Roads and highways (89%); General transportation sector (7%); Sub-national government administration (4%) Theme: Infrastructure services for private sector development (P); Pollution management and environmental health (P); Municipal governance and institution building (S); Access to urban services and housing (S) KEY DATES Original Revised/Actual PCD: 03/29/1996 Effective: 06/01/1999 12/28/1999 Appraisal: 02/25/1999 MTR: 06/01/2001 12/18/2002 Approval: 03/30/1999 Closing: 12/31/2004 12/31/2005 Borrower/Implementing Agency: PEOPLE'S REPUBLIC OF CHINA/Liaoning Urban Construction and Renewal Project Office (LUCRPO) Other Partners: STAFF Current At Appraisal Vice President: Jeffrey S. Gutman Jean-Michel Severino Country Director: David R. Dollar Yukon Huang Sector Manager: Jitendra N. Bajpai Jitendra N. Bajpai Team Leader at ICR: Shomik Raj Mehndiratta Richard G. Scurfield ICR Primary Author: Rakhi Basu 2. Principal Performance Ratings (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible) Outcome: S Sustainability: L Institutional Development Impact: M Bank Performance: S Borrower Performance: S QAG (if available) ICR Quality at Entry: S Project at Risk at Any Time: No 3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: The development objective of the project (PDO) was to improve urban transport system productivity so as to facilitate economic and social development within the project cities. Specifically, the project was designed to: (1) alleviate bottlenecks in the road system through the development of high grade facilities, secondary roads, rail crossings, missing links and widenings, (2) increase efficiency and effectiveness of the public transport (PT) through the development of bus corridors and passenger facilities and modernized maintenance facilities; (3) improve maintenance of road investments through development of modernized and sustainable pavement management system; (4) improve environmental sustainability of project investments through development of a motor vehicle emissions control strategy (MVECS); (5) improve operational efficiency and safety of the road system through channelization of modal traffic and development of Non Motor Vehicle (NMV) facilities, signalization and other traffic management measures; and (6) strengthen local capacity of urban transport system management through study tours, technical 1/ assistance and targeted training. Assessment of Objectives - The objectives of the project were clear and supported the Government's priorities of the time. The major issues facing the urban transport sector in China stemmed from increasing motorization, rapid urbanization, inefficient public transport and poorly coordinated institutional arrangements for managing urban traffic. Specifically, urban traffic congestion was already an important constraint to urban productivity. To address these issues, a symposium was held in Beijing in 1995, and 2/ identified five principles that should guide urban transport planning and operations in China. The sector-related Country Assistance Strategy goals of the project were to: (i) promote growth with economic stability; (ii) alleviate infrastructure constraints; and (iii) safeguard the environment. For the three project cities of Shenyang, Fushun and Anshan, the project was designed to contribute to these goals by increasing city-wide productivity and raising the standard of living for the cities' inhabitants, through targeted and sustainable improvements to the urban transport system. From a sectoral perspective, this was the third urban transport operation undertaken by the Bank in China in the early-to-mid 1990s. At the time of appraisal, the road network in the three project cities was inadequate with poor conditions on the secondary and tertiary system. Public transit was steadily losing mode share to minibus and auto/taxi travel due to slow operating speeds (in the city center public transport speeds averaged 12 km/hr. and 5-8 km/hr. in the peak period), and a poor route and transfer network. A public transport reform program had been initiated in each city to maintain and attract public transport riders through improved services while reducing the need for subsidies. Limited application of traffic ____________________________________ 1/ It should be noted that the development objective (DO) in the PAD are not consistent with the objective stated in the legal agreement, but is not different in substance. The report has used the DO from the PAD since it was more complete. 2/ The suggested actions based on these principles were the following: (i) reform urban transport administration; (ii) upgrade the status of traffic management; (iii) prepare a strategy to mitigate motor vehicle air and noise pollution; (iv) develop policies to manage traffic demand; (v) develop a strategy for mass transit; (vi) reform public transport management and operations; (vii) develop a financing strategy for the transport sector; (viii) strengthen the framework for transport planning and capacity building. - 2 - management measures primarily due to a lack of knowledge of traffic management practices had resulted in deteriorating road conditions. In all three cities, comprehensive planning, regulation and policy-making for the sector were weak, and traffic management and planning activities were not well developed or coordinated. Viewed against this background, the project objectives were clear and well related to the analysis of the issues in the sector and responsive to the borrower’s needs at that time. The rationale of the project was rooted in the traffic management program which was expanded in scope from area traffic control to include other elements such as channelization, NMV route development and parking, and in the road maintenance component which was expanded from equipment purchase to include some rehabilitation works. However, the most significant redesign of the infrastructure component during project preparation supported transformation of the public transport component to include public transport reform and the provision of bus priority facilities. As a result, this component evolved from one which was heavily vehicle-oriented to a broader based program of reform and investment. Thus the project objectives represented a balanced emphasis on