Gansu Roads Development Project
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Completion Report Project Number: 33470 Loan Number: 2125 June 2013 People’s Republic of China: Gansu Roads Development Project CURRENCY EQUIVALENTS Currency Unit – yuan (CNY) At Appraisal At Project Completion (15 August 2004) (31 Dec 2012) CNY1.00 = $0.1210 $0.1587 $1.00 = CNY8.2700 CNY6.3026 ABBREVIATIONS AADT – annual average daily traffic ADB – Asian Development Bank EIA – environmental impact assessment EIRR – economic internal rate of return EMP – environmental management plan FIRR – financial internal rate of return GCHC – Gansu Changda Highway Co. GDP – gross domestic product GPEAB – Gansu provincial expressway administration bureau GPG – Gansu provincial government GPHAB – Gansu provincial highway administration bureau GPTD – Gansu provincial transportation department ICB – international competitive bidding KMPNR – Kongtong Mountain Provincial Nature Reserve M&E – monitoring and evaluation MEP – Ministry of Environmental Protection MOT – Ministry of Transportation NCB – national competitive bidding NTHS – national trunk highway system O&M – operation and maintenance PAM – project administration manual PCR – project completion report PPMS – project performance management system PR – progress report PRC – People’s Republic of China SDAP – social development action plan SEIA – summary environmental impact assessment SEPP – soil erosion protection plan TA – technical assistance VOC – vehicle operating cost WACC – weighted average cost of capital WEIGHTS AND MEASURES ha – hectare km – kilometer m2 – square meter m3 – cubic meter mu – Chinese unit of measurement (1 mu = 666.67 m2) pcu – passenger car unit NOTE In this report, “$” refers to US dollars, unless otherwise stated. Vice-President S. Groff, Operations 2 Director General R. Wihtol, East Asia Department (EARD) Director H. Sharif, People’s Republic of China Resident Mission (PRCM), EARD Team leader G. Xiao,Senior Project Officer (Transport), PRCM, EARD Team members H. Hao, Project Analyst, PRCM, EARD F. Wang, Senior Project Officer (Financial Management), PRCM, EARD W. Zhu, Senior Project Officer (Resettlement), PRCM, EARD N. Li, Environment Consultant, PRCM, EARD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page BASIC DATA i I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Output 3 C. Project Cost 5 D. Disbursements 5 E. Project Schedule 5 F. Implementation Arrangements 6 G. Conditions and Covenants 6 H. Related Technical Assistance 7 I. Consultant Recruitment and Procurement 7 J. Performance of Consultants, Contractors, and Suppliers 7 K. Performance of the Borrower and the Executing Agency 8 L. Performance of the Asian Development Bank 8 III. EVALUATION OF PERFORMANCE 8 A. Relevance 9 B. Effectiveness in Achieving Outcome 9 C. Efficiency in Achieving Outcome and Output 9 D. Preliminary Assessment of Sustainability 10 E. Impact 11 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 13 A. Overall Assessment 13 B. Lessons 13 C. Recommendations 14 APPENDIXES 1. Design and Monitoring Framework 15 2. Chronology of Major Events in the Project’s History 19 3. Project Costs and Financing Plan 20 4. Projected and Actual Contract Awards and Disbursements 22 5. Appraisal and Actual Implementation Schedules 24 6. Organization Charts 25 7. Status of Compliance with Loan Covenants 27 8. Details of Expressway Civil Works and Equipment Packages 39 9. Economic Reevaluation 41 10. Financial Reevaluation 45 11. Land Acquisition and Resettlement 49 12. Social Impact and Poverty Reduction 54 13. Environmental Impact Analysis 60 i BASIC DATA A. Loan Identification 1. Country People’s Republic of China 2. Loan Number 2125 3. Project Title Gansu Roads Development Project 4. Borrower People’s Republic of China 5. Executing Agency Gansu provincial transportation department 6. Amount of Loan $300.0 million 7. Project Completion Report Number PCR: PRC 1392 B. Loan Data 1. Appraisal - Date Started N/A - Date Completed N/A 2. Loan Negotiations - Date Started 8 November 2004 - Date Completed 10 November 2004 3. Date of Board Approval 13 December 2004 4. Date of Loan Agreement 24 March 2005 5. Date of Loan Effectiveness - In Loan Agreement 22 June 2005 - Actual 30 June 2005 - Number of extensions 0 6. Closing Date - In Loan Agreement 30 June 2010 - Actual 17 July 2012 - Number of Extensions 1 7. Terms of Loan - Interest Rate ADB’s Loan interbank offered rate (LIBOR)– based - Maturity 25 years - Grace Period 5 years 8. Terms of Relending - Interest Rate ADB’s Loan interbank offered rate (LIBOR)– based - Maturity 25 years - Grace Period 5 years - Second-Step Borrower Gansu provincial government ii 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 15 September 2005 5 April 2012 79 months Effective Date Original Closing Date Time Interval 30 June 2005 30 June 2010 60 months b. Amount ($ million) Last Original Revised Amount Net Amount Amount Undisbursed Category or Subloan Allocation Allocation Canceled Available Disbursed Balance Civil works (expressway) 251.2 265.1 0.4 264.7 0.4 Civil works (local roads) 10.0 10.0 0.0 10.0 0.0 Equipment 7.5 6.0 0.0 6.0 0.0 Training 0.3 0.3 0.0 0.3 0.0 Consulting services 1.2 1.1 0.0 1.1 0.0 Interest and commitment 19.8 17.5 0.0 17.5 0.0 charges Unallocated 10.0 0.0 0.0 0.0 0.0 Total 300.0 300.0 0.4 299.6 0.4 Source: ADB’s Loan Financial Information System. 10. Local Costs (ADB-Financed) - Amount ($) 0.00 - Percentage of Local Costs 0.00 - Percentage of Total Cost 0.00 C. Project Data 1. Project Cost ($ million) Appraisal Estimate Actual Appraisal Estimate Actual Cost ($ million) ($ million) (CNY million) (CNY million) Foreign exchange cost 394.0 299.6 3,261.0 1,825.2 Local currency cost 488.0 1,041.4 4,039.0 6,626.8 Total 882.0 1,341.0 7,300.0 8,452.0 Sources: ADB and Gansu Changda Highway Co. iii 2. Financing Plan ($ million) Appraisal Estimate Actual Foreign Local Total Foreign Local Total Cost Exchange Currency Cost Exchange Currency Cost Implementation costs Borrower-financed 80.8 438.1 518.9 0.0 918.1 918.1 ADB-financed 280.2 0.0 280.2 282.1 0.0 282.1 Subtotal 361.0 438.1 799.1 282.1 918.1 1,200.2 IDC costs Borrower-financed 13.2 49.9 63.1 0.0 123.3 123.3 ADB-financed 19.8 0.0 19.8 17.5 0.0 17.5 Subtotal 33.0 49.9 82.9 17.5 123.3 140.8 Total 394.0 488.0 882.0 299.6 1041.4 1341.0 ADB = Asian Development Bank, Sources: ADB. 2004. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the People’s Republic of China for the Gansu Roads Development Project. Manila; and Gansu Changda Highway Co. 3. Cost Breakdown by Project Component ($ million) Appraisal Estimate Actual Foreign Local Total Foreign Local Total Component Exchange Currency Cost Exchange Currency Cost A. Base Cost 1. Expressway civil works 254.7 280.1 534.8 264.7 680.2 944.9 2. Equipment 45.5 2.5 48.0 6.0 32.2 38.2 3. Land acquisition and resettlement 0.0 34.2 34.2 0.0 131.5 131.5 4. Consulting services and training 1.5 29.4 30.9 1.4 22.0 23.4 5. Local roads 21.3 31.8 53.1 10.0 52.2 62.2 Subtotal (A) 323.0 378.0 701.0 282.1 918.1 1,200.2 B. Contingencies 1. Physical contingencies 26.3 30.2 56.5 0.0 0.0 0.0 2. Price escalation 11.7 29.9 41.6 0.0 0.0 0.0 Subtotal (B) 38.0 60.1 98.1 0.0 0.0 0.0 Interest and Commitment Charges C. 33.0 49.9 82.9 17.5 123.3 140.8 during Construction Total 394.0 488.0 882.0 299.6 1,041.4 1,341.0 Note: Figures may not add up to the totals given because of rounding. Sources: ADB. 2004. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the People’s Republic of China for the Gansu Roads Development Project. Manila; and Gansu Changda Highway Co. iv 4. Project Schedule Item Appraisal Estimate Actual Date of contract with consultants Oct. 2004 Mar. 2006 Completion of detailed design 2006 Civil works contract Date of award Aug. 2005 Jan. 2006 Completion of work Dec. 2009 Dec. 2009 (west section) and Dec. 2011 (east section) Equipment and supplies First procurement Aug. 2008 Nov. 2010 Last procurement Dec. 2008 Feb. 2011 Completion of equipment installation Dec. 2009 Mar. 2011 Start of operations Completion of tests and commissioning Dec. 2009 Dec. 2009 (west section) and Dec. 2011 (east section) Beginning of start-up Dec. 2009 Dec. 2009 (west section) and Dec. 2011 (east section) Sources: Asian Development Bank and Gansu Changda Highway Co. 5. Project Performance Report Ratings Rating Development Implementation Implementation Period Objectives Progress 1 December–31 December 2004 Satisfactory Satisfactory 1 January 2005–31 May 2005 Satisfactory Satisfactory 1 June 2005–30 November 2005 Satisfactory Highly Satisfactory 1 December 2005–31 December 2005 Satisfactory Satisfactory 1 January 2006–31 December 2006 Satisfactory Satisfactory 1 January 2007–31 December 2007 Satisfactory Satisfactory 1 January 2008–31 December 2008 Satisfactory Satisfactory 1 January 2009–31 December 2009 Satisfactory Satisfactory 1 January 2010–31 December 2010 Satisfactory Highly Satisfactory Source: Asian Development Bank.