Completion Report Project Number: 28065 Loan Number: 1439 February 2006 PRC: DAXIAN–WANXIAN RAILWAY PROJECT CURRENCY EQUIVALENTS Currency Unit – yuan (CNY) At Appraisal At Project Completion 4 September 1995 31 August 2005 CNY1.00 = $0.1202 $0.1233 $1.00 = CNY8.3174 CNY8.1080 ABBREVIATIONS ADB – Asian Development Bank CRBA – Chongqing Railway Branch Administration CSRA – Chongqing Sub-Railway Administration Dawan – Dazhou-Wanzhou Dacheng – Dazhou-Chengdu EIA – environmental impact assessment EIRR – economic internal rate of return ESRI – Environmental Science Research Institute in Wanzhou FIRR – financial internal rate of return GDP – gross domestic product ICB – international competitive bidding M&E – monitoring and evaluation MOR – Ministry of Railways PCR – project completion review PMO – project management office PRC – People’s Republic of China RP – resettlement plan SDRC – Sichuan Dawan Railway Company Limited SLRB – Sichuan Local Railway Bureau SWJU – Southwest Jiaotong University TA – technical assistance VOC – vehicle operating cost WACC – weighted average cost of capital YWR – Yichang–Wanzhou Railway WEIGHTS AND MEASURES oC – degree centigrade h – hour mu – 1/15 of a hectare t-km – ton-kilometer NOTES (i) The fiscal year (FY) of the Government ends on 31 December. (ii) In this report, "$" refers to US dollars. Vice President Operations Group 2 Director General H. S. Rao, East and Central Asia Department (ECRD) Director N. C. Rayner, ECRD Team Leader X. Yang, Financial Specialist, ECRD Team Members S. Ferguson, Sr. Resettlement Specialist, ECRD M. Parkash, Transport Specialist (Railways), ECRD W. Zhu, Resettlement Specialist, ECRD CONTENTS Page BASIC DATA i MAPS v I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs 4 D. Disbursements 4 E. Project Schedule 5 F. Implementation Arrangements 5 G. Conditions and Covenants 6 H. Related Technical Assistance 7 I. Consultant Recruitment and Procurement 7 J. Performance of Consultants, Contractors, and Suppliers 8 K. Performance of the Borrower and the Executing Agency 8 L. Performance of the Asian Development Bank 8 III. EVALUATION OF PERFORMANCE 9 A. Relevance 9 B. Efficacy in Achievement of Purpose 9 C. Efficiency in Achievement of Outputs and Purpose 11 D. Preliminary Assessment of Sustainability 12 E. Environmental, Sociocultural, and Other Impacts 12 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14 A. Overall Assessment 14 B. Lessons Learned 14 C. Recommendations 15 APPENDIXES 1. Project Framework 16 2. Chronology of Major Events 19 3. Technical Specifications of the Project Facilities 21 4. Link Roads Constructed in the Project Area 23 5. Project Costs and Financing 24 6. Projected and Actual Disbursements 25 7. Implementation Schedule 26 8. Organization Structure of Dawan Railway Company Limited 27 9. Merger of Dawan Limited and Dacheng Limited 28 10. Compliance with Major Loan Covenants 32 11. Contract Packages 40 12. Traffic Forecast 43 13. Economic Evaluation 49 14. Financial Evaluation 51 15. Environmental Impact Analysis 56 16. Evaluation of Land Acquisition and Resettlement Activities 60 17. Socioeconomic Impacts 67 BASIC DATA A. Loan Identification 1. Country People’s Republic of China 2. Loan Number 1439 3. Project Title Daxian–Wanxian Railway Project 4. Borrower People’s Republic of China 5. Executing Agency Dawan Railway Company Limited (Dawan Limited) 6. Amount of Loan $100 million 7. PCR Number PCR: PRC 920 B. Loan Data 1. Appraisal – Date Started 4 Sep 1995 – Date Completed 20 Sep 1995 2. Loan Negotiations – Date Started 23 Apr 1996 – Date Completed 25 Apr 1996 3. Date of Board Approval 4 Jun 1996 4. Date of Loan Agreement 20 Aug 1997 5. Date of Loan Effectiveness – In Loan Agreement 19 Nov 1997 – Actual 6 Dec 1997 – Number of Extensions 1 6. Closing Date – In Loan Agreement 31 Dec 2000 – Actual 18 Dec 2002 – Number of Extensions 2 7. Terms of Loan – Interest Rate Pool-based variable lending – Maturity (number of years) 24 years – Grace Period (number of years) 4 years 8. Terms of Relending Same as the terms to the Borrower ii 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 27 April 1998 18 December 2002 4 years, 8 months Effective Date Original Closing Date Time Interval 6 December 1997 31 December 2000 3 years b. Amount ($) Last Net Category or Original Revised Amount Amount Amount Undisbursed Subloan Allocation Allocation Canceled Available Disbursed Balance Civil Works 30,000,000 45,000,000 0 45,000,000 44,682,844 317,156 Equipment 9,500,000 3,000,000 (6,500,000) 3,000,000 2,974,203 25,797 Materials 30,250,000 24,000,000 (6,250,000) 24,000,000 23,979,115 20,885 Consulting Services 500,000 500,000 0 500,000 488,683 11,317 IDC 14,000,000 14,000,000 0 14,000,000 13,677,223 322,777 Unallocated 15,750,000 0 (750,000) 0 0 0 Total 100,000,000 86,500,000 (13,500,000) 86,500,000 85,802,068 697,932 IDC = interest during construction. Note: A total of $13.5 million was cancelled on 13 June 2001. A further amount of $697,932 was cancelled on 18 December 2002 when the loan was closed. 10. Local Costs (Financed by ADB Loan) - Amount ($) 0 - Percent of Local Cost 0 - Percent of Total Cost 0 C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 107.00 102.90 Local Currency Cost 253.00 241.60 Total 360.00 344.50 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower-Financed 229.80 247.20 ADB-Financed 100.00 72.10 Subtotal 329.80 319.30 IDC Costs Borrower-Financed 16.20 11.50 ADB-Financed 14.00 13.70 Subtotal 30.20 25.20 Total 360.00 344.50 ADB = Asian Development Bank, IDC = interest during construction. iii 3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual Civil Works 263.10 258.7 Signaling, Telecoms, Power, Computerization, and Equipment 25.26 15.8 Rolling Stock 7.60 0.0 Consulting Services for Computerization 0.64 0.7 Land Acquisition, Compensation, Resettlement 13.10 26.9 Administrative, Domestic Consulting Services, and Miscellaneous 20.10 17.2 Interest During Construction 30.20 25.2 Total 360.00 344.5 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants December 1996 December 2001 Completion of Engineering Designs March 1995 May 2002 Civil Works Contract Date of Award July 1996 January 1998 Completion of Work May 2000 June 2002 Dates First Procurement May 1998 May 1998 Last Procurement November 2000 March 2000 Completion of Equipment Installation June 2001 December 2002 Start of Operations Beginning of Start-Up for Freight Operation November 2000 10 Dec 2002 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From 26 Jun 1998 to 30 Apr 1999 S S From 30 Apr 1999 to 31 Jul 2000 S S From 31 Jul 2000 to 30 Apr 2001 HS S From 30 Apr 2001 to 31 Jul 2002 HS S From 31 Jul 2002 to 18 Dec 2002 HS S From 31 Jan 2003 to 31 Mar 2003 HS S From 30 Apr 2003 to 31 Jul 2003 HS S HS = highly satisfactory; S = satisfactory. iv D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Members Fact-Finding Mission 25 Apr–5 May 1995 5 40 a, b, d, h, g Appraisal Mission 4–20 Sep 1995 4 64 a, b, c, e Inception Mission 28–31 Oct 1997 2 12 a, g Review Mission – 1 14–23 Jun 1998 2 18 a, g Review Mission – 2 3–10 May 1999 2 14 a, i Review Mission – 3 2–10 Jul 2000 1 8 a Review Mission – 4 31 May–9 Jun 2001 1 9 a Review Mission – 5 19–27 Aug 2002 2 16 b, i Review Mission – 6 8–15 Mar 2005 2 14 b, h Project Completion Review 23–31 Aug 2005 1 8 b a - engineer, b - financial analyst, c - counsel, d - economist, e - procurement consultant or specialist, f - control officer, g - programs officer; h - environment specialist; i - assistant project analyst. Note: The project completion report was prepared by Xiaohong Yang, financial specialist and mission leader, assisted by a social development specialist (staff consultant). Scott Ferguson, senior resettlement specialist; Wenlong Zhu, project officer (resettlement); and poverty reduction specialist Natsuko Toba provided desk reviews of the project completion report. o 106 o 00'E 118 00'E i CENTRAL RAILWAY NETWORK e w g IN THE n o h Z PEOPLE'S REPUBLIC OF CHINA N o t Zhengzhou-- Xi'an Railway Project S H A N D O N G Hefei--Xi'an Railway Project 0 50 100 200 Zhengzhou Luoyang Lianyungang Yellow Sea Sanyuan Kilometers Xinyi o Baoji H E N A N Shangqiu Jiahe o 34 00'N Xianyang Xuzhou 34 00'N Lintong Xuchang G A N S U Suixi Huaiyin Huxian Xi'an Baofeng Zhoukouzhen J I A N G S U Suzhou S H A A N X I Luohe Liuzhuang Jin--Jiu Railway Technical Bengbu Enhancement Project Fuyang Hai'an Nanyang Yangpingguan Huainan Nantong Shiyan Qidong Guangyuan Ankang Huangzhou Maoba Nanjing Hefei Wangkang Xinyang Xiangfan Shanghai Wuhu Suizhou Shucheng A N H U I SHANGHAI H U B E I Huayuan S I C H U A N Fengxian Dazhou Anlu Tongling Xuancheng Changxing Daxian--Wanxian Railway Project Jinmen Macheng Gaohe Anqing Quxian Chengdu Wanzhou Yichang Changjiangfu Hangzhou Suining Wuhan Hefei--Jiujiang Railway Project Yaqueling Jingzhou Konglong Ningbo Huangshi Shexian Lichuan Yichang--Wanzhou Railway Project Qimen Z H E J I A N G Jiajiang Changshou Jiujiang Shouchang Neijiang Fuling Shimen Jingdezhen Jinhua Chongqing Dayong Shangrao Yibin Nanchang Hengfeng Luzhou Yiyang o Xiangtang o 28 00'N Jiang'an 28 00'N H U N A N Yongping Wenzhou Changsha Yingtan Ningxiang Jihou Fenyi Zhuzhou Loudi Zunyi Gongxi YUNNAN Pingxiang Fu'an South J I A N G X I China G U I Z H O U Huaihua F U J I A N Shaoyang Sea Shunchang Nanping Weiming Hengyang Wenzhou Chaling Guiyang Lupanshui Fuzhou Yongzhou Anshun Duyun Provincial Capital Railway Under Construction City/Town Asian Development Bank--Financed Project Guizhou-- Shuibai Railway Project Existing Railway--Double Track Japan Bank for International Cooperation Financed Project Existing Railway--Single Track World Bank-- Financed Project 0 5 Project Railway Provincial Boundary M - 3 2 9 Planned Railway Boundaries are not necessarily authoritative.