PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB5009 China Wuhan Second Urban Transport Project Name Public Disclosure Authorized Region EAST ASIA AND PACIFIC Sector General transportation sector (60%); Roads and highways (20%); Sub-national government administration (10%); Other social services (10%) Project ID P112838 Borrower(s) PEOPLE’S REPUBLIC OF CHINA Ministry of Finance San Li He Street, Xicheng District China 100820 Tel: 8610-68551124 Fax: 8610-68551125 Implementing Agency Public Disclosure Authorized Municipality of Wuhan No. 188, Yan Jiang Avenue Hankou, Wuhan Hubei Province China 430014 Tel: (86-27) 8282-6302 Fax: (86-27) 8281-4646 [email protected] Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared November 2, 2009 Date of Appraisal September 15-18, 2009 Public Disclosure Authorized Authorization Date of Board Approval April 22, 2010 (estimated) 1. Country and Sector Background Wuhan, the capital of Hubei Province, is the eighth largest city in China (with a population of more than 8 million) and a major economic and transportation hub in central China. At the confluence of the middle reaches of the Yangtze and Han rivers, the city consists of the conglomeration of three urban boroughs—Wuchang, Hanyang, and Hankou—that have grown simultaneously to an urban core population of more than 5 million people. Wuhan, historically known as the “thoroughfare of nine provinces,” enjoys a key geographic advantage that has attracted manufacturing and service industries, and has given the city its recognition as a political, financial, educational, and transportation center. In 2007, its GDP per capita reached Public Disclosure Authorized about US$4,500 and is expected to grow at 7 to 9 percent annually in the near future. On December 2007, the City was designated by the State Council as a National Experimental Zone for the implementation of the Comprehensive Supplementary Reform on the Construction of a Resource-Saving/Environmentally Friendly Oriented Society (“Two-Type Society”). In this context, Wuhan seeks to improve mobility in the city’s central area and relieve congestion, particularly along corridors crossing the Yangtze River. The City has put forth a strong public transport improvement plan as demonstrated by its investments in bus priority and metro system, of which Line 1 is operational, as well as by its ancillary investments in areas such as traffic management. Urban transport. At present, the City’s public transport (PT) system comprises mainly buses (with a fleet of more than 6,500), trolley buses, ferries, and one 10 km elevated rail line1 which is not yet integrated with other modes but is being extended to better link potential trip origins and destinations. Transport by car has been increasing steadily with the rising personal incomes and so has the number of trips by motorcycle. Trips by bicycle and other NMT have decreased but walking remains popular. There are indications that the growth in car ownership is spurring a continued increase in the number of trips undertaken by car or motorcycles at the expense of other modes.2 The following table shows the modal split with the estimates for 2008 based on the growth in the number of vehicles. Mode 1998 2004 2008 Walking 37% 41% 38% Bicycle 29% 20% 20% Public transport (bus, ferry, metro) 22% 23% 24% Passenger car and motorcycle 12% 16% 18% Source: Wuhan Municipality, Pre-Feasibility Study Report, and World Bank Wuhan Urban Transport Project PAD, 2004. Municipal Transport Strategy and Key Sector Issues. Urban transport is largely the responsibility of the municipal government, which is entrusted with planning, financing, and implementing urban transport infrastructure. In 2003, Wuhan Municipality commissioned a study on a Wuhan Transport Strategy, with the objective of establishing a comprehensive transport system characterized by rapid, safe, and convenient movement of people and goods in such a way as to minimize travel and pollution, and to advance coordinated development across the urban region. The strategy was fed into a revision of the Urban Master Plan in 2006 for the period up to 2020. The transport strategy identified four key issues that framed the proposed Bank-intervention: (i) congestion on river crossings; (ii) missing links in the primary road network; (iii) congestion in the city center due to limitations in the performance of the road network; (iv) the need to improve performance and mode share of public transport services. 2. Objectives The Project Development Objective (PDO) is to enhance mobility for passenger trips within and to the central area of Wuhan in an environmentally sustainable, integrated, and safe manner. The 1 See Annex 1 on the metro network in Wuhan. 2 Urbanization and motorization would continue to grow but rates of growth might decrease in the context of the current worldwide financial crisis. project will involve (i) priority interventions in public transport (including traffic management), (ii) road safety improvements, (iii) enhanced management of the tunnel and bridges connecting Wuhan’s three boroughs, (iv) road improvements, and (v) institutional development. These interventions would be carried out in a coordinated fashion and concentrated along a few key municipal transport corridors in order to increase their impact and serve as demonstration initiatives that can later be implemented in other critical corridors of the city. 3. Rationale for Bank Involvement The World Bank-financed Urban Transport Project in Wuhan, currently in its last year of implementation, was conceived to address a number of the issues listed in the previous section as identified at the time of its appraisal in 2003, with particular attention to: (a) shortcomings in the public transport system with limited network coverage; weak operational on-street management; and shortage of depots and facilities; (b) traffic congestion in an ill-defined hierarchy of roads, which were not well maintained; and (c) declining mobility for pedestrian and cyclists due to encroachments of cars and high rates of accidents with fatalities. The Wuhan Municipal Government have assessed very positively the World Bank’s involvement in the ongoing Urban Transport Project and considers that the project has contributed substantially to overall improvement of municipal capacity in urban transport matters and to enhance the general mobility across the network. Although the project is not yet completed, most performance indicators show good progress towards the achievement of project targets, with several targets already met. Building upon the strategies, interventions, and achievement of the ongoing World Bank- financed (first) Wuhan Urban Transport Project, the Chinese Government and the Wuhan Municipality City have asked the World Bank to continue the support to the financing of a new urban transport project with a focus on further improving traffic conditions in the core urban center (within the 2nd Ring Road), complemented with sustained assistance in strengthening the institutional capacity in urban transport matters. The proposed new project then would build upon the interventions being carried out under the ongoing project to continue the support to the implementation of the urban development and transport strategies envisioned by the Wuhan Municipality, and would take into account the lessons learned during the implementation of the ongoing project. In this endeavor, the World Bank is ideally placed to continued its assistance to the Wuhan Municipality given its experience in other cities in China and elsewhere in urban transport matters and, particularly, in devising and supervising the implementation of interventions that attempt to shift trips from private to public and non-motorized modes of transport. 4. Description The project is composed of five components. A detailed description can be found in Annex 4 of the PAD. Component 1: Public Transport (PT) Component: PT Priority Corridor Improvements – $49.27 million ($21.23 million Bank Financing). The PT Component comprises a range of investments to strengthen PT route rationalization and operations and to give priority to buses on four key corridors, roughly within the 2nd Ring Road as follows: (i) Jiefang Dadao (in Hankou); (ii) Xinhua Lu/Youyi Lu (in Hankou); (iii) Heping Dadao (in Wuchang); and (iv) Hanyang Dadao/Yingwu Dadao (in Hanyang). In two of the corridors, Jiefang Dadao and Heping Dadao, the public transport improvements are being integrated with road safety improvements (see below). In addition, it is proposed to construct four public transport transfer terminals/interchanges at San Jin Tan, Gangdu Garden, Tian Shun Yuan, and Jinyin Tan to facilitate mode transfer from private to public modes, and Park and Ride (P+R) for NMVs and cars. Component 2: Road Safety (RS) Component – $16.05 million ($11.41 million Bank financing). The RS Component consists of (i) an integrated package of good practice road safety interventions in the fields of enforcement, education, and engineering carried out along five key high-risk corridors identified during project preparation through a fatality map; and (ii) major investment in traffic management in the project area (the area within the 2nd Ring Road). Two of the identified corridors are also priority public transport corridors and offer opportunities to integrate public transport improvements with treatments to improve traffic safety. The corridors and area are: (i) Jiefang Dadao (included in the PT