Loan 1168 : Shenyang – Benxi Highway

Overview

The Shenyang-Benxi Highway Project in Liaoning Province aims to provide infrastructure support for the continued economic and social development of Shenyang-Benxi corridors and adjacent hinterland. This is comprised of construction of 75-kilometer, four lane, and controlled-access toll expressway from the provincial capital of Shenyang to Benxi and onward to Nanfen, procurement of equipment for road monitoring, road safety and communication, and consulting services for construction and supervision and training. This forms a vital link of the road infrastructure in the northeast transport corridor and is consistent with ADB’s country operational strategy and country assistance program emphasizing infrastructure development as a primary vector of rapid, sustainable, and equitable economic growth. The main objectives of the project are to: i) Reduce traffic on existing roads; ii) improve access of the hinterland economy to Dalian port; and iii) reduce congestion on the overburdened railway by diverting traffic to the expressway.

Activities and Outputs

The purpose of the Shanyang-Benxi Highway Project was to improve the efficiency and capacity of the road transport link from Shenyang and the adjacent hinterland to the secondary port of Dandong. The outputs of the project include i) 75-km, four-lane, controlled access toll expressway from Shenyang (the provincial capital) to Benxi and onward to Nanfen; and ii) procurement for road monitoring, road safety and communications.

Financing

The total cost of the Shenyang-Benxi Highway Project at appraisal was estimated at $166 million equivalent, of which $62.3 million was the foreign currency cost (38 percent) and $103.7 million equivalent (62 percent) the local currency cost. The financing envisaged at appraisal included a $50 million ADB loan to finance about 80 percent of the foreign exchange cost. The Government undertook to finance the remaining foreign exchange cost and local currency cost in the amount of $116 million. Source: ADB Photo Library Impacts and Outcomes

Benefits derived from the project include savings in vehicle operating cost for both diverted traffic and generated traffic, avoided maintenance investments on Highway 304, savings in passenger and freight time costs, savings in vehicle operating costs due to distance reduction, and savings in time costs for the remaining vehicles using Highway 34 due to reduced traffic congestion.

For More Information www2.adb.org/Documents/PERs/PE553.pdf Source: ADB. 2000. Project Performance Audit Report Shenyang-Benxi Highway Project. Manila.

Asian Development Bank