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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 71548-CN INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF Public Disclosure Authorized US$ 50 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A JIANGXI SHANGRAO SANQINGSHAN AIRPORT PROJECT April 16, 2013 Public Disclosure Authorized China and Mongolia Sustainable Development Unit Sustainable Development Department Public Disclosure Authorized East Asia and Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective December 15, 2012) Currency Unit = RMB RMB 6.30 = US$1.00 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS CAAC Civil Aviation Administration of China CPS Country Partnership Strategy DA Designated Account EIRR Economic Internal Return Rate MFB Shangrao Municipal Finance Bureau EMF Environmental Management Framework EMP Environmental Management Plan FEGP Fixed Electrical Ground Power FMM Financial Management Manual GDP Gross Domestic Products IFRs interim financial reports ISP Implementation Support Plan JPAO Jiangxi Provincial Audit Office JPFB Jiangxi Provincial Finance Bureau MDRC Shangrao Municipal Development and Reform Committee NPV Net Present Value LEED Leadership in Energy and Environmental Design PCA Pre-Conditioned Air PDO Project Development Objective PLG Project Leading Group PMM Procurement Management Manual PMO Project Management Office ORAF Operational Risk Assessment Framework RAP Resettlement Action Plan RPF Resettlement Policy Framework SIL Specific Investment Loan SMG Shangrao Municipal Government SSAC Shangrao Sanqingshan Airport Company Limited Regional Vice President: Axel van Trotsenburg, EAPVP Country Director: Klaus Rohland, EACCF Sector Director: John A. Roome, EASSD Sector Manager: Mark R. Lundell, EASCS Task Team Leader: Binyam Reja, EASCS CHINA China: Jiangxi Shangrao Sanqingshan Airport Project TABLE OF CONTENTS Page I. STRATEGIC CONTEXT ...........................................................................................1 A. Country Context ....................................................................................................... 1 B. Sectoral and Institutional Context ............................................................................ 1 C. Higher Level Objectives to which the Project Contributes ..................................... 4 II. PROJECT DEVELOPMENT OBJECTIVES ..........................................................4 A. PDO.......................................................................................................................... 4 III. PROJECT DESCRIPTION ........................................................................................4 A. Project Components ................................................................................................. 4 B. Project Financing ..................................................................................................... 5 C. Lessons Learned and Reflected in the Project Design ............................................. 6 IV. IMPLEMENTATION .................................................................................................7 A. Institutional and Implementation Arrangements ..................................................... 7 B. Results Monitoring and Evaluation ......................................................................... 7 C. Sustainability............................................................................................................ 7 V. KEY RISKS AND MITIGATION MEASURES ......................................................8 A. Risk Ratings Summary Table .................................................................................. 8 B. Overall Risk Rating Explanation ............................................................................. 8 VI. APPRAISAL SUMMARY ..........................................................................................9 A. Economic and Financial Analyses ........................................................................... 9 B. Technical .................................................................................................................. 9 C. Financial Management ........................................................................................... 11 D. Procurement ........................................................................................................... 11 E. Social (including Safeguards) ................................................................................ 12 F. Environment (including Safeguards) ..................................................................... 13 Annex 1: Results Framework and Monitoring ...................................................................16 Annex 2: Detailed Project Description .................................................................................18 Annex 3: Implementation Arrangements ............................................................................22 Annex 4 Operational Risk Assessment Framework (ORAF) ...........................................36 Annex 5: Implementation Support Plan ..............................................................................39 Annex 6: Economic and Financial Analysis ........................................................................41 Annex 7: Project Map ............................................................................................................48 . PAD DATA SHEET China China: Jiangxi Shangrao Sanqingshan Airport Project (P123729) PROJECT APPRAISAL DOCUMENT . EAST ASIA AND PACIFIC EASCS Report No.: PAD405 . Basic Information Project ID Lending Instrument EA Category Team Leader P123729 Specific Investment A - Full Assessment Binyam Reja Loan Project Implementation Start Date Project Implementation End Date 9-May-2013 30-Jun-2018 Expected Effectiveness Date Expected Closing Date 30-Sep-2013 31-Dec-2018 Joint IFC No Sector Manager Sector Director Country Director Regional Vice President Mark R. Lundell John A. Roome Klaus Rohland Axel van Trotsenburg . Borrower: Ministry of Finance Responsible Agency: Shangrao Sanqingshan Airport Company Limited Contact: Yu Xiaobin Title: Chairman Telephone 86-793-816-3019 Email: [email protected] No.: . Project Financing Data(US$M) [ X ] Loan [ ] Grant [ ] Other [ ] Credit [ ] Guarantee For Loans/Credits/Others Total Project Cost (US$M): 105.13 Total Bank Financing 50.00 (US$M): . Financing Source Amount(US$M) Borrower 55.13 International Bank for Reconstruction and 50.00 Development Total 105.13 . Expected Disbursements (in USD Million) Fiscal 2014 2015 2016 2017 2018 2019 Year Annual 3.00 5.00 10.00 15.00 15.00 2.00 Cumulati 3.00 8.00 18.00 33.00 48.00 50.00 ve . Project Development Objective(s) The Project Development Objective (PDO) is to improve airline connectivity in northeastern Jiangxi Province and demonstrate the environmental sustainability of the development and operation of the Shangrao Sanqingshan Airport. Components Component Name Cost (USD Millions) Airport Infrastructure Development Component 100.72 Institutional Development and Capacity Building Component 2.00 . Compliance Policy Does the project depart from the CAS in content or in other significant Yes [ ] No [ X ] respects? . Does the project require any waivers of Bank policies? Yes [ ] No [ X ] Have these been approved by Bank management? Yes [ ] No [ X ] Is approval for any policy waiver sought from the Board? Yes [ ] No [ X ] Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ] . Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X Safety of Dams OP/BP 4.37 X Projects on International Waterways OP/BP 7.50 X Projects in Disputed Areas OP/BP 7.60 X . Legal Covenants Name Recurrent Due Date Frequency Implementation Arrangements X Description of Covenant The Borrower shall cause the Project Implementing Entity to maintain the implementation arrangements as described in Section 1 A (Institutional Arrangement) (Safeguards) of the Schedule to the Project Agreement. Name Recurrent Due Date Frequency Safeguards X Description of Covenant The Borrower shall take, and shall cause the Project Implementing Entity to take, all measures necessary to comply with, or all measures necessary to enable the Project Implementing Entity to comply with the provisions of Section I.C (Safeguards) of the Schedule to the Project Agreement. Name Recurrent Due Date Frequency Project Reports X Description of Covenant The Borrower shall cause the Project Implementing Entity to monitor and evaluate the progress of the Project and prepare Project Reports, audit reports, interim unaudited financial reports in a timely manner and in a format agreed with the Bank. Conditions Name Type No Conditions Team Composition Bank Staff Name Title Specialization Unit Shunong Hu Senior Water Engineer Senior Water Engineer EASCS Binyam Reja Lead Transport Task Team Leader EASCS Specialist Charles E. Schlumberger Lead Air Transport Lead Air Transport TWITR Specialist Specialist Feng Ji Senior Environmental Environmental
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