Document of The World Bank Public Disclosure Authorized Report No: ICR00001853 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-48300) ON A Public Disclosure Authorized LOAN IN THE AMOUNT OF US$200 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A THIRD JIANGXI HIGHWAY PROJECT Public Disclosure Authorized June 29, 2011 China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective March 30, 2011) Currency Unit = RMB Yuan RMB1.00 = US$0.151 US$1.00 = RMB 6.60 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ADT Average Daily Traffic ARE Ruijin-Fujian border Expressway BOT Build-Operate-Transfer CAS Country Assistance Strategy CPS Country Partnership Strategy EAP Environmental Action Plan EIA Environmental Impact Assessment EMP Environmental Management Plan EIRR Economic Rate of Return ETC Electronic Toll Collection E&M Electrical and Mechanical FIRR Financial Internal Rate of Return FYP Five Year Plan GDP Gross Domestic Products HRI Highway Research Institute ICB International Competitive Bidding IDF Institutional Development Fund IEG Independent Evaluation Group (World Bank) ISP Institutional Strengthening Program JPCD Jiangxi Province Communications Department (later, Renamed as JPTD) JPH3 Third Jiangxi Highway Project JPTD Jiangxi Province Transportation Department km Kilometer LRIP Local Roads Improvement Program M&E Monitoring and Evaluation MOC Ministry of Communications MOT Ministry of Transport MOF Ministry of Finance NCB National Competitive Bidding NEN National Expressway Network NPV Net Present Value NTHS National Trunk Highway System PAD Project Appraisal Document PCU Passenger Car Unit (equivalent) PDO Project Development Objectives PMO Project Management Office PPIAF Public-Private Infrastructure Advisory Facility QAG Quality Assurance Group (in the World Bank) RAP Resettlement Action Plan RRPIP Rural Road Pavement Improvement Program RGE Ruijin-Ganzhou Expressway RMB Renminbi (Chinese Yuan) VOC Vehicle Operating Costs vpd Vehicles per day Vice President: James Adams, EAPVP Country Director: Klaus Rohland, EACCF Ede Jorge Ijjasz-Vasquez, EASCS; and Sector Managers: Narasimham Vijay Jagannathan, EASIN Project Team Leader: Fei Deng, EASIN ICR Team Leader: Fei Deng, EASIN CHINA Third Jiangxi 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 .................................................. 3 3. Assessment of Outcomes ................................................................................................ 7 4. Assessment of Risk to Development Outcome ............................................................. 11 5. Assessment of Bank and Borrower Performance ......................................................... 11 6. Lessons Learned............................................................................................................ 13 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners............... 14 Annex 1. Project Costs and Financing .............................................................................. 15 Annex 2. Outputs by Component...................................................................................... 16 Annex 3. Economic and Financial Analysis ..................................................................... 18 Annex 4. Bank Lending and Implementation Support/Supervision Processes ................. 23 Annex 5. Environmental and Social Mitigation and Impact............................................. 25 Annex 6. Stakeholder Workshop Report and Results ....................................................... 36 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ......................... 37 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ........................... 46 Annex 9. List of Supporting Documents .......................................................................... 47 MAP 34205 A. Basic Information Third Jiangxi Highway Country: China Project Name: Project Project ID: P093906 L/C/TF Number(s): IBRD-48300 ICR Date: 06/29/2011 ICR Type: Core ICR PEOPLES REPUBLIC Lending Instrument: SIL Borrower: OF CHINA Original Total USD 200.0M Disbursed Amount: USD 189.7M Commitment: Revised Amount: USD 195.0M Environmental Category: A Implementing Agencies: Jiangxi Provincial Communications Department Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 04/12/2005 Effectiveness: 02/08/2007 02/08/2007 Appraisal: 01/03/2006 Restructuring(s): 08/14/2009 Approval: 06/27/2006 Mid-term Review: Closing: 12/31/2010 12/31/2010 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Low or Negligible Bank Performance: Satisfactory Borrower Performance: Highly Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Highly Satisfactory Implementing Quality of Supervision: Satisfactory Highly Satisfactory Agency/Agencies: Overall Bank Overall Borrower Satisfactory Highly 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 Yes 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 97 97 Sub-national government administration 3 3 Theme Code (as % of total Bank financing) Infrastructure services for private sector development 33 33 Injuries and non-communicable diseases 17 17 Rural services and infrastructure 17 17 Trade facilitation and market access 33 33 E. Bank Staff Positions At ICR At Approval Vice President: James W. Adams Jeffrey S. Gutman Country Director: Klaus Rohland David R. Dollar Sector Manager: Ede Jorge Ijjasz-Vasquez Jitendra N. Bajpai Project Team Leader: Fei Deng Christopher R. Bennett ICR Team Leader: Fei Deng ICR Primary Author: Hernan Levy F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The project development objective is to improve east-west passenger and freight flows in Jiangxi province by investing in the construction of an expressway, enhancing local roads, and strengthening highway management. (The description of the PDO in the Loan Document is substantially the same as the PAD). ii The objectives will be measured using the following outcome indicators: - in the Ruijin-Ganzhou corridor: (a) increased average daily traffic; (b) decreased accidents on the existing road G323; and (c) decreased travel time from Ruijin to Ganzhou; - for the road sections of the Local Roads Improvement Program: (a) increased average daily traffic; (b) reduced number of days closed; (c) reduced travel times; (d) increased bus services; and - implementation of key recommendations from the institutional strengthening components with regard to tunnel safety, roadside safety, and electronic toll collection. Revised Project Development Objectives (as approved by original approving authority) The objectives were not revised. iii (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 A. Ruijin-Ganzhou Expressway (RGE) Average daily traffic in the RGE Expressway (passenger car equivalent, Indicator 1 PCU, per day per section) A-B Ruijin-Huichang 14,000 8,530 B-C Huichang-Yudu 15,000 9,451 C-D Yudu-Ganxian 16,000 11,180 D-E Ganxian-Zhanggong 17,000 11,972 Date achieved 12/31/2005 12/31/2010 10/31/2010 Target will be achieved after the connecting ARE expressway opens end of 2011. Comments When the ARE opens, the RGE will connect directly with the expressways in Fujian province. Average daily traffic route G323 (passenger car equivalent, PCU, per day Indicator 2 per section) A-B Ruijin-Huichang 7,321 4,000 6,369 B-C Huichang-Yudu 11,011 6,000 13,383 C-D Yudu-Ganxian 10,137 6,000 9,890 D-E Ganxian-Zhanggong 12,164 8,000 16,150 Date achieved 12/31/2005 12/31/2010 12/31/2010 Target likely to be achieved end 2011, when the full RGE will be in operation. This will increase diversion of G323 traffic to the RGE, further reducing G323 Comments traffic. Still, the objective of reducing congestion on the G323 has been largely achieved. Indicator 3 Average accident rate/(fatal) route G323 (per 100,000,000 vehicle-kilometer) Ruijin 23.87/(2.01) 15/(0.83) 28.79/(1.85) Huichang 34.80/(0) 18/(1.11) 4.45/(4.13) Yudu 14.89/(1.49) 11/(0.87) 4.64/(2.45) Ganxian 19.50/(2.05) 13/(1.07) 2.72/(0.98) Zhonggong 24.93/(1.25) 5/(0.52) 9.29/(0.77) Date achieved 12/31/2005 12/31/2010 12/31/2010 Partially achieved, although large yearly variances in accident and fatality rates Comments result in difficulties in data interpretation. Indicator 4 Average travel time Ruijin-Ganzhou (minutes) 150 75 75 Date achieved 12/31/2005