Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Copy Public Disclosure Copy II. I. Decision Estimated DateofBoardApproval Estimated DateofAppraisalCompletion Date PIDPrepared Environmental Category Implementing Agency Borrower(s) Project ID Lending Instrument Sector(s) Country Region Project Name as poorconnectivity withregionalairports,pooroperational efficiency,andlowutilization offeederairportsarerestraining Chinafrombuildinga underutilized. The numberoffeederairportsand airlinesisrelativelysmalland geographicalcoverageisyet to beoptimized.Issuessuch planning andsurfacetransportplanning. Furthermore,somelargeairportshavereachedtheircapacities; whilesomefeederairportsare transport resourcesandfunction between airportsinsomeregionsisnotoptimized,(ii)lackofintegration ofairtransportwithlocalurban Despite thelargeairportinfrastructure development,theprovisionofefficientairportserviceisstilllagging behind,inpartbecause,(i)air account for82percentoftotalpopulation and96percentoftotalGDP. 80 percentofcountieswillbewithin 100kmor1.5hoursbygroundtransportaccesstoanairport,and thetotalairtransportcatchmentareawill The overallcapacityofairtransport infrastructureanditsintegrationwithothertransportmodeswill benotablyimproved.Bythattime,morethan all theprovincecapitals,majorcities,andtourismdestinations, willbeconnectedbyafunctionalhub,trunk,andfeederairportnetwork. China planstobuild69additionalairportsforatotalof244civil by2020whichwouldrequireinvestmentofRMB450billion.Ifsuccessful, been transferredwithintheCAACfromcentraltoprovincial levelsince2002. 49% shareofequity.Domesticairlineswereallowedin2004toinvest inairportstoamaximumof25%totalinvestment.Airportownershiphas resource allocation.Foreigninvestorswereallowedin2002toinvest inairportconstruction,includingterminalbuildingsandrunways,withupto In 2001,10majorairlineswereconsolidatedinto3supercarriers: Air China,ChinaEasternAirlines,andSouthernAirlinestooptimize years, CAAChascarriedoutmajoradministrativeandregulatoryreforms forbetterfunctioninganddevelopmentofcivilaviationsectorinChina. setting andmonitoringsafetysecuritystandards,administering airtrafficcontrolandconductingcivilaviationairspaceplanning.Inrecent 2008. CAAC’sresponsibilityincludesplanningforairports,setting domestic andinternationalaviationtariffs,managingairportconstructionfees, The CAACistheadministrativeinstitutionresponsibleforcivilaviation inChina,nowundertheMinistryofTransportwhichwasnewlycreated Decades ofemphasisonsafetyhaspaidoffwithChinanowrecognized globallyasaproviderofsafeairtransport. counties, andtheircatchmentareacovers76%oftotalpopulation91%theeconomymeasuredbyGrossDomesticProducts (GDP). airport serviceradiusstandardofaccessibilitywithin100kmor1.5hoursgroundtransport,theexistingnetworknowcanserve 70%of airports with33newlybuiltonesduringthelastfiveyears.Internationalroutesprovideregularairserviceto110citiesin54countries. Usingthe 38 billion),whichisequivalenttothetotalinvestmentcombinedduringprevious25years.Asofend2010,Chinahas175 civil aviation United States.DuringtheEleventhFive-YearPlan(2005-2010),China’scivilaviationinfrastructurereceivedinvestmentofRMB250 billion(USD routes. Thedomesticroutescovermorethan175cities.Chinaisnowtheworld’ssecondlargestairtransportmarketintrafficvolume afterthe state-owned and9privatelyowned.Thetotalnumberofscheduledairrouteshasreached2290,with1847domestic443international previous yeartoreach621million,andcargotonnagereached11.6milliontons.Bytheendof2011,Chinahas47airlinecompanies, with38 Air transportisChina’sfastestgrowingmodeoftransport.In2011,airpassengerthroughputhadincreasedby10percentfrom the Sectoral andInstitutionalContext Project Context civil airportsbyendof2020. especially feederairports.IntheNationalCivilAirportDevelopmentPlan,AviationAdministrationofChina(CAAC)hasenvisioned 244 world’s secondlargestmarketinairtransport.Thecountryisnowgivingincreasingattentionandinvestmentbuildingrenovating airports, natural disasters.Despitetherelativelysmallamountofinvestmentandrecentglobalrecessionindustry,Chinahasbecome the The countryhasrecognizedairtransport’svitalroleinpromotingeconomicandsocialdevelopment,reducingregionaldisparities, relieving remain intheroadandrailwaysectors,airtransportsectoronlyattractedabout4.6percentoftotalinvestmentduringlast fiveyears. 91,000km railwaynetwork,95nationalports,and175civilairports.Thegreatestpartsoftheinvestmentintransportation,however, end ofChina’s“EleventhFive-YearPlan”,Chinahasdevelopedamultimodaltransportationsystemwith3.98millionkmhighwaynetwork, During thepastfewdecades,Chinahasenjoyedcontinuedrapideconomicgrowthwithitsboomingtransportationinfrastructure.By 2010,the Country Context 09-May-2013 10-Jan-2013 27-Dec-2012 A-Full Assessment Shangrao SanqingshanAirportConstructionOffice(PMO) Ministry ofFinance P123729 Specific InvestmentLoan Aviation (80%),Publicadministration-Transportation(20%) China EAST ASIAANDPACIFIC China: JiangxiShangraoSanqingshanAirportProject(P123729) PROJECT INFORMATIONDOCUMENT(PID) APPRAISAL STAGE Report No.:PIDA653 Public Disclosure Copy Public Disclosure Copy China. saving. Ifsuccessful, itisanticipatedthatthisproject willbecomeademonstration project forthedevelopmentoffuture feederairportprojectsin groups, designingproperairroutes, incorporatingenvironmentalsustainabilitytoachievenationalcarbon emissiontargetsaswellenergy It isintendedthattheprojectwill enhance operationsbysettingupaproperbusinessmodel,improving theidentificationoftargetedpassenger the airportwillremainpreferred choice. than suggestedbythe“crow-fly” distance. Thereforetheproposedairportwillprovideeasieraccess toShangraoresidentsandvisitors,ensuring accessibility totheseotherairports bytheShangraotargetedpassengersisrestrictedmountainous terrainwhichresultsinlongertraveltime Although thereare4civilairports locatedwithinabouta200kmradiusoftheproject(Jingdezhen,Wuyishan, HuangshanandQuzhou),the becomes operational,financialsubsidiesfromthemunicipalgovernment willbeneededtomaintaintheairportoperation. financially sustainableiftheannualpassengerflowisabove350,000. Itisestimatedthat,duringtheearlyopeningyearsafterairport million visitors,theforecasted500,000passengersby2020appears reasonable.Thepre-feasibilitystudyconcludesthattheairportwillbe estimated tobe3,000tonsby2020.Giventhelargepopulationin the catchmentareaandboomingregionaltourismthathasreached14.7 In theproject’spre-feasibilitystudy,passengertrafficfor2020 isestimatedtobe500,000witha14%annualgrowthrate.Cargotonnage Northeastern JiangxiProvince.Itwillfacilitatethegrowthofregion’s tourismresourcesandcomplementthecomprehensivetransportsystem. The proposedShangraoSanqingshanairportisofsignificantimportance totheeconomicdevelopmentofShangraoMunicipalityand electrical andmechanicaloptics,newbuildingmaterialshavebecome thecity’sfourleadingindustries. billion. Specialagriculture,mineralresourcesandtourismarethe mainstay ofShangrao’seconomy,whilenon-ferrousmetals,newenergy, GDP reachedRMB111billion,a13%increasefromtheprevious year, andYingtanhadRMP42billionforatotalcatchmentGDPofRMB144 and Yingtanmunicipalitiesareincluded,totalingapopulationof8.5 millionandatotalareaof26,000km2.In2011,theShangraomunicipality The catchmentareafortheairportwillincludeareaswithin100kmofradiusor1.5hoursgroundtransportation.Inthisarea, Shangrao 2011, itstourismincomewasmorethanRMB21.54billionandforeignexchangeexceeded$63.78million. (UNESCO NaturalHeritage),andPoyangLake,Shangraoaccommodated29.15milliondomestictourists170,000international touristsin Delta economiczone,andtheWesternTaiwanStraitszone.WithfamoustourismdestinationssuchasWuyuan,Sanqingshan located atthejunctionofJiangxi,Zhejiang,Fujian,andAnhuiprovince,itconnectsYangtzeRiverDeltaeconomiczone, PearlRiver Shangrao SanqingshanAirportisincludedintheCAAC’sNationalCivilDevelopmentPlanfor2020.Themunicipalityof is financial viabilityoftheairport. environmental managementduringoperations,targetedpassengergroups,marketingandnegotiatingwithairlinecompaniestoenhance the airport economicplanning)toreducethefiscalburdenforSMG.Inaddition,projectwillsupportkeyoperationalelements,likeroute design, sustainability forChina’sotherfeederairports,includingthroughidentifyingnon-operatingrevenues(suchascommercialdevelopment and (d) the demandbytakingintoaccountexistenceofhigh-speedtrainsandothermodesthatwillcompeteorcomplementwithairtransport. (c) operation withaviewtodeveloping‘green’airport. (b) region throughtheprovisionoftechnicalsupporttodevelopanintegratedtransportplanforregion. (a) innovation toChina’sairtransportsectorinfollowingfourmajorareas. Aside fromtheprimaryprojectdevelopmentobjectiveofimprovingairtransportconnectivity,Bank’sinvolvementwillbringvalue and the operationofairportonceconstructioniscompleted. Shangrao MunicipalGovernment(SMG)hasrecentlyestablishedtheSangqingshanAirportCorporation,whichwillberesponsible for Bureau, andMunicipalPlanningBureau.Anairportmanagementofficewasestablishedin2010forthepreparationofproject.In addition,the level, includingtheShangraoMunicipalDevelopmentandReformCommittee(MDRC),FinanceBureau(MFB), Transport The projectinvolvesvariousstakeholdersincludingthegovernmentagenciesfromnationallevel,CAACandNDRC,local financed airtransportprojectinChina. pilot investmentprojectwasidentifiedwherebytheseissuescouldbeaddressed:theShangraoSanqingshanAirportproject,firstBank- transport modalintegration,environmentallyfriendlyairportdesignandoperation,economicfinancialsustainability.Shortlythereaftera air transportinChinaandhowtheBankcouldassistmitigatingthesechallenges.Threeprincipalareasofcooperationwereidentified: the WorldBankwereheldwithgovernmentofficialsandindustryspecialistsinSeptember2009June2010todiscusschallengesfacing workshop oninnovation,airtransportasanareawheretheWorldBankcouldbringvalue.Subsequentlyworkshopssponsoredby The WorldBank,togetherwiththeMinistryofFinanceandNationalDevelopmentReformCommission,identifiedinaJune2009 Five YearPlan. and toreduceitscarbonfootprint.Moreover,treatmentofsolidwastea Financially sustainability:anappropriatebusinessandoperationalmodelwillbeadoptedfortheairporttomakeitaoffinancial Economically sustainability:theprojectscopeisdesignedtoensureproperdemandforecastsandappropriateairportsizingmeet Environment sustainability:theprojectwilladoptmostenvironmentallysensibleandpracticaldecisionsinairportdesign Multimodal transportintegration:theairportwillbeintegratedintonetworkofShangraocityandNorthEasternJiangxi Public Disclosure Copy Public Disclosure Copy VII. VI. V. IV. III. Total International BankforReconstructionandDevelopment Borrower For Loans/Credits/Others Institutional DevelopmentandCapacityBuildingComponent Airport InfrastructureDevelopmentComponent Component Name sustainability ofthedevelopmentandoperationShangraoSanqingshanAirport. The ProjectDevelopmentObjective(PDO)istoimproveairlineconnectivityinNortheasternJiangxiProvinceanddemonstratetheenvironment fleet vehicles,intermittentfunctioningmodesforelevators,escalatorsandpedestrianconveyorsetc. Conditioned Air(PCA)unitsforon-boardpowersupplyandventilation,warm-mixasphaltorrecycledcontentinpavement,hybridclean-energy materials, includingLEDforlighting,aself-containeddrainagesystemwastewatertreatment,FixedElectricalGroundPower(FEGP)andPre- • natural gaswhicheverwouldbemorereadilyavailable. • direct routesbetweenrunwaysandterminalgatetoreducetaxiingtimedelays. ventilation, doubleglassfacadesandlargeroofoverhangsforsolarshading,etc.;whiletheenergyefficientairportlayoutwouldprovidemost • following aspects: The proposedprojectsupportstheconceptofaGreenAirportdevelopmentandoperation,whichwillfocusonincreasingenergyefficiencyin Safeguard Policies(includingpublicconsultation) all TAstudies. consistent withallrelevantWorldBankpoliciesandprocedures.The SSACwillalsoserveastheexecutingagency,responsibleforimplementing reporting. SSACwillbetheprimarycoordinatingbodyresponsible forcommunicatingwiththeWorldBank,ensuringthatimplementationis resettlement, socialandenvironmentalsafeguards,loandisbursement requests,fiduciarycomplianceandevaluation,resultsmonitoring, The SSAC/PMOwillberesponsiblefortheday-to-dayprojectmanagement, includingimplementationofprocurement,contractmanagement, the currentmomentstaffingofPMOandSSACaresame people. operation, afifthdivision,operationwillbeadded,withfourpersons(airtrafficcontrol,navigation,weather,andbusinessoperation). At (three persons);(b)engineeringdivision(four(c)financial(twoand(d)auditoffice(oneperson).During airport Representative) andtheoperatingheadofSSAC.Currently,therearefourdivisionsincompanyincluding(a)administration division and AdministrationCommissionwithregisteredcapitalofRmb50millionon25July2011.TheDirectorthePMOisalsoChairman (Legal The ShangraoSanqingshanAirportCompanyLimited(SSAC)wasestablishedsolelybyMunicipalState-ownedAssetsSupervision ordinance, itisresponsiblefortheairportplanningandpreservationofaerialclearance. daily coordinationduringtheprojectimplementationandoperationperiods.InaccordancewithSMG’sairportmanagement submission andclearanceofthefeasibilitystudiesinliaisonwithfunctionaldepartmentsprovincialgovernment.Itisresponsible for Under theleadershipofPLG,ProjectManagementOffice(PMO)wasestablishedforprojectproposalsubmissionandclearance, and several relevantmunicipalgovernmentlineagencies. institutional coordinationonprojectpreparationandimplementation.ThePLG,headedbyaViceMayor,iscomposedofleaders directorsof The ShangraoMunicipalGovernment(SMG)hasestablishedaProjectLeadingGroup(PLG)toprovidestrategicleadership,policy guidance and Implementation Financing Project Description Project DevelopmentObjectives Indigenous Peoples OP/BP4.10 Physical CulturalResourcesOP/BP 4.11 Pest ManagementOP4.09 Forests OP/BP4.36 Natural HabitatsOP/BP4.04 Environmental AssessmentOP/BP4.01 Safeguard PoliciesTriggeredbytheProject Energy efficientequipmentandinfrastructure.Theinfrastructurewillbedesignedtouseenergyelements Alternative powersources.energysourceswouldbeusedforselectedfacilitiesusingsolar-generatedelectricity;dieselor Energy efficientarchitectureandairportlayoutdesign.Thewillbedesignedwithenergyelementssuchasnatural (in USDMillion) Amount 105.13 50.00 55.13 Yes ✖ ✖ No ✖ ✖ ✖ ✖ Public Disclosure Copy Public Disclosure Copy IX. VIII. Web: http://www.worldbank.org/infoshop Fax: (202)522-1500 Telephone: (202)458-4500 Washington, D.C.20433 1818 HStreet,NW The WorldBank The InfoShop Email: Tel: Title: Contact: Name: Implementing Agencies Email: Tel: Title: Contact: Name: Borrower/Client/Recipient Email: Tel: Title: Contact: For moreinformationcontact: World Bank Contact point Projects inDisputedAreasOP/BP7.60 Projects onInternationalWaterwaysOP/BP7.50 Safety ofDamsOP/BP4.37 Involuntary ResettlementOP/BP4.12 [email protected] 86-793-822-9791 Director Yu Xiaobin Shangrao SanqingshanAirportConstructionOffice(PMO) [email protected] 86-10-6855-3216 Project Officer Wang Hai Ministry ofFinance [email protected] 5788+7731 / Lead TransportSpecialist Binyam Reja ✖ ✖ ✖ ✖