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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 34134 - CN PROJECT APPRAISAL DOCUMENT ONA PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF US$180 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A SICHUAN URBAN DEVELOPMENT PROJECT Public Disclosure Authorized August 11,2006 Urban Development Sector Unit East Asia and Pacific Region This document has a restricted distribution and may be used by recipients only in the Public Disclosure Authorized performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUNALENTS (Exchange Rate Effective December 5,2005h CurrencyUnit = RMB 8.1 = US$1 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS Vice President: Mr. Jeffrey Gutma$ EAPVP Country ManagerDirector: Mr. David Dollar, EACCF Sector Director: Mr. Keshav Varma, EASUR Task Team Leader: Mr. Hiroaki Suzuki, EASUR CHINA SICHUAN URBAN DEVELOPMENT PROJECT CONTENTS Page A . STRATEGIC CONTEXT AND RATIONALE ..................................................... 1 1. Country and sector issues ........................................................................................ 1 2 . Rationale for Bank involvement ............................................................................. 4 3 . Higher level objectives to which the project contributes ........................................ 5 B. PROJECT DESCRIPTION ..................................................................................... 6 1. Lending instrument ................................................................................................. 6 2 . Project development objective and key indicators .................................................. 6 3 . Project components ................................................................................................. 6 4 . Lessons learned and reflected in the project design................................................ 8 5 . Alternatives considered and reasons for rejection .................................................. 9 C . IMPLEMENTATION ............................................................................................ 10 1. Partnership arrangements ...................................................................................... 10 2 . Institutional and implementation arrangements., .................................................. 10 3 . Monitoring and evaluation ofoutcomeshesults .................................................... 10 4 . Sustainablllty............................................................................................................ 10 5 . Critical risks and possible controversial aspects ................................................... 11 6 . Loan conditions and covenants ............................................................................. 13 D. APPRAISAL SUMMARY ..................................................................................... 14 1. Economic and Financial Analysis ......................................................................... 14 2 . Technical ............................................................................................................... 16 3 . Fiduciary ............................................................................................................... 16 4 . Social..................................................................................................................... 16 5 . Environment .......................................................................................................... 17 6 . Safeguard policies ................................................................................................. 18 7 . Policy exceptions and readiness ............................................................................ 18 Annex 1: Country and Sector Background .................................................................. 19 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ..... 31 Annex 3: Results Framework and Monitoring ............................................................ 33 Annex 4: Detailed Project Description.......................................................................... 42 Annex 5: Project Costs ................................................................................................... 48 Annex 6: Implementation Arrangements ..................................................................... 50 Annex 7: Financial Management and Disbursement Arrangements ......................... 54 Annex 8: Procurement.................................................................................................... 62 Annex 9: Economic and Financial Analysis ................................................................. 72 Annex 10: Safeguard Policy Issues................................................................................ 94 Annex 11: Project Preparation and Supervision ....................................................... 112 Annex 12: Documents in the Project File ................................................................... 115 Annex 13: Statement of Loans and Credits ................................................................ 116 Annex 14: Country at a Glance ................................................................................... 120 Annex 15: Maps IBRD 34137 PEOPLE'S REPUBLIC OF CHINA PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC EASUR - Date: August 11,2006 Task Team Leader: Hiroaki Suzuki Country Director: David Dollar Sectors: Roads and Highways (79.8%), Sewer Sector MangedDirector: Keshav Vanna (10.5%), General Water, Sanitation, and Flood Project ID: PO83322 Protection Sector (8.1%), Sub-national Lending Instrument: Specific Investment Loan Government Administration (1.6%) (SIL) Themes: Other Urban Development (P), Land Management (S), Other Environment and Natural Resources Management (S), State Enterprise/Bank Restructuring and Privatization (S), Infrastructure Services for Private Sector Development (S), Municipal Governance and Institutional Building (S) Environmental screening category: A Safeguard screening category: Full____ Assessment For Loans/Credits/Others(US$m): 180 I I Total Bank financing (US$m.): 180 I Borrower: THE PEOPLE'S REPUBLIC OF CHINA Responsible Agency: Provincial Project Management Office (PPMO) lothfloor, Nongzi Building, No. 10 East Jinli Rd. Qingyang District, Chengdu, Sichuan, China Tel: 86-28-8612-8880, Fax: 86-28-8612-9043, Email: [email protected] ;Y 07 08 09 10 11 4nnual 9.00 54.00 54.00 45 .OO 18.00 Zumulative 9.00 63.00 117.00 162.00 180.00 Project development objective Re$ PAD Section B.3 Project Development Objective: To improve core urban functions in an equitable and resource efficient manner by removing identified infrastructure bottlenecks hampering land development, transport, and environmental conditions in four second-tier cities in Sichuan Province. Urban Infrastructure Investment Component (US$365.56 million): This component will fund strategic-investments supporting spatial planning priorities as shown under: Miunyang US$98.70 million: The construction oftrunk and secondary infrastructure, including drainage and environmental improvements, for two major urban development areas: Pioneer Park (US$49.96 million); and the Southern Economic Development Zone (SEDZ) (US$48.73 million), adjacent to Mianyang’s city center. Suining US$64.98 million: The construction of secondary infrastructure and roads in the newly developed Xining District Area (US$58.23 million) to the west ofthe city, including an associated link road to the city railway station area, the Xining Road (US$6.75 million). Yibin USs76.35 million: Build two riverbank roads Route A (US$40.44 million) and Route B (US$35.91 million) that are designed to improve access within the city and enhance the degraded riverbank environment. Punzhihuu USs125.53 million: Four components designed to accommodate growth ofthe city by improving access and traffic circulation in two urban roads, viz. Bing-Ren Road (US$80.22 million) and Bin Jiang Road (US$9.32 million), and upgrading the city’s sewerage systems (US$10.41 million), riverbanks, and landscape conditions (US$25.60 million) Institutional Development and Capacity Building (IDCB) Component (US$7.00 million): This component consists oftechnical assistance (TA) for Institutional Development and Capacity Building within the project municipalities (US$3 -30 million), and TA for Project Implementation and Management, including EMP/RAP implementation monitoring (US$3.70 million). The goal of the TA is to help municipalities improve urban planning and management capacities related to spatial planning, land management, transport planning, and utility and asset management. Which safeguard policies are triggered, if any? Re$ PAD Section D. 6 Environmental Assessment (OP/BP/GP 4.01) Involuntary Resettlement (OP/BP 4.12) Significant, non-standard conditions, if any, for: N.A. Disbursement Conditions: (i) Signing ofthe subsidiary agreement between Mianyang and Mianyang Sanjiang Construction Investment Co., Ltd. (MSCIC), satisfactory to the Bank. (ii) Signing ofthe subsidiary agreement between Mianyang and Mianyang Science and Education Pioneer Investment Co., Ltd. (MSEPIC), satisfactory to the Bank. (iii) Signing ofthe subsidiary agreement between Yibin and Yibin Urban Construction Investment Co., Ltd. (YUCIC), satisfactory to the Bank. (iv) Signing ofthe subsidiary agreement between Panzhihua and Panzhihua
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