Supplementary Appendix D 1 SUPPLEMENTARY APPENDIX D DETAILED COST ESTIMATES AND FINANCING PLAN 1. Components and Expenditure Accounts The project cost components and expenditure accounts in the cost estimate are defined in Table SA-D1and Table SA-D2 respectively. Table SA - D1: Components Component No. Definitions Accounts 1 Urban Roads - Altay Urban Roads - Changji Urban Roads - Hami Urban Roads - Kuytun Urban Roads - Turpan Urban Roads 2 Environmental - Altay Environmental Improvement Improvement - Changji Environmental Improvement - Hami Environmental Improvement - Kuytun Environmental Improvement - Turpan Environmental Improvement 3 Capacity - Altay Capacity Building Building - Changji Capacity Building - Hami Capacity Building - Kuytun Capacity Building - Turpan Capacity Building Table SA - D2: Expenditure Accounts Expenditure No. Definitions Accounts 1 Civil Works - Earth works - Concrete work - Metal fabrication - Building construction on roads and pipelines, etc - Landscaping, planting, and fences, etc - Plumbing, electrical wiring and other utility services - Other construction services 2 Equipment - General purpose vehicles - General purpose tools - Office supplies - Sanitation facilities 3 Materials - Purchases of project materials that are separately from associated construction services, e.g. rock, steel, cement, sand, wood, rebar, pipes, asphalt, seedling trees, grass seeds and paving blocks etc 4 Land - Land aquired Acquisition - Compensation for loss of assets and livelihood and - Cost to resettle displaced persons (new housing, new land, retraining, Resettlement moving costs, and costs to assist the host community etc) - Monitoring 5 Environmental - Any costs related to environmental protection during project Protection implementation 2 Supplementary Appendix D Expenditure No. Definitions Accounts 6 Survey, - Investigations and survey Research, - Research Design and - Design Consulting - Technical support services Service 7 Bidding - Any costs related to bidding documents and expenses Documents and Expenses 8 Consulting - Any costs relating to consultant services for capacity building during Service implementation 9 Training - Technical training for project operations under capacity building - Training in ADB procedures under capacity building - Other training under capacity building 10 Management - Any expenses related to project management under capacity building 2. Assumptions The major assumptions for the cost estimates are: Exchange Rate:1 CNY6.85 = $1 All costs are in April 2008 prices. Physical contingencies are calculated at 10%. Price contingencies are based on expected cumulative inflation at home and abroad over the implementation period as follows: 2008/09 2009/10 2010/11 2011/12 2012/13 Foreign rate of price inflation (%/year) 1.2% 1.2% 1.2% 1.2% 1.2% Domestic rate of price inflation (%/year) 5.0% 5.0% 5.0% 5.0% 5.0% Assumed rates (2008 to 2013) are provided by the Asian Development Bank. Financing costs include capitalized interest and commitment fees. Interest during construction has been computed at the 14 April 2008 five-year forward London interbank offered rate plus a spread of 0.2%. Commitment fee is assumed to be 0.15%. Interest rates and terms are as follows: Interest Total period Interest Commitment Grace Interest Commitment Rates & of the loan rate charge Period capitalized fee capitalized Terms in years ADB Loan 3.58% 0.15% 25 5 100% 100% ADB = Asian Development Bank. 3. Major Output Tables The major output tables are shown in SA D3 through SA D9. 1 Source: Agreed between PMO and ADB estimate of appreciating CNY exchange rate. Table SA.D3 Xinjiang Urban Transport and Environmental Improvement Project Summary of Cost Estimates Total Project (CNY Ten Thousand) (US$ Million) Percent of Total Item Foreign Local Foreign Local Exchange Currency Total Costs Exchange Currency Total Costs Project Costs Costs Costs Costs Costs A. Base Costs I. Construction Civil Works 32,715.1 34,050.4 66,765.6 53.8 43.8 97.5 51% Equipment 14,371.3 0.0 14,371.3 21.0 0.0 21.0 11% Land Aquisition and Resettlement 0.0 17,915.6 17,915.6 0.0 26.1 26.1 14% Environmental Protection 0.0 1,611.1 1,611.1 0.0 2.4 2.4 1% Survey, research, design & consulting services 0.0 5,422.7 5,422.7 0.0 7.9 7.9 4% Subtotal (I) 47,086.4 58,999.8 106,086.2 74.7 80.2 154.9 81% II. Capacity Building Consulting Services 342.5 0.0 342.5 0.5 0.0 0.5 0% Training 479.5 0.0 479.5 0.7 0.0 0.7 0% Management 205.5 0.0 205.5 0.3 0.0 0.3 0% Subtotal (II) 1,027.5 0.0 1,027.5 1.5 0.0 1.5 1% Total - Base costs (I+II) 48,113.9 58,999.8 107,113.7 76.2 80.2 156.4 81% B. Contingencies Physical Contingency 5,142.2 5,569.2 10,711.4 7.5 8.1 15.6 8% Supplementary Appendix D Price Contingency 1,385.4 6,376.1 7,761.5 2.0 9.3 11.3 6% Total - Contingencies 6,527.5 11,945.4 18,472.9 9.5 17.4 26.9 14% C. Financing charges during implementation Interest during implementation - ADB Loan 6,146.3 0.0 6,146.3 9.0 0.0 9.0 5% Commitment charges - ADB Loan 89.0 0.0 89.0 0.1 0.0 0.1 0% Total - Financing charges during implementation 6,235.3 0.0 6,235.3 9.1 0.0 9.1 5% Total - Project Costs 60,876.8 70,945.2 131,822.0 94.9 97.6 192.4 100% Exchange rate: 6.85 CNY to 1US$ 3 4 Table SA D4 Xinjiang Urban Transport and Environmental Improvement Project Costs and Financing by Expenditure Account Supplementary Appendix D Summary of Total Project Cost Financing by Expenditure Account (in $ Million) ADB Share by Item CNY Ten US$ ADB Altay City Changji Ciy Hami City Kuytun Ciy Turpan Ciy Expenditure Thousand Million Loan Government Government Government Government Government Account A. Base Cost 1. Construction Civil works 66,765.6 97.6 68.4 7.9 5.6 3.1 9.0 3.4 70% Equipment 14,371.3 21.0 21.0 0.0 0.0 0.0 0.0 0.0 100% Land acquisition and resettlement 17,915.6 26.1 0.0 2.9 11.1 3.1 0.0 9.0 0% Environmental protection 1,611.1 2.4 0.0 0.1 0.1 0.0 0.1 0.1 0% Survey, research, design and consulting services 5,422.7 7.9 0.0 2.1 2.6 1.2 2.1 1.9 0% Total Construction 106,086.2 154.9 89.4 13.0 19.4 7.5 11.2 14.3 58% II. Capacity Building Consulting services 342.5 0.5 0.5 0.0 0 0 0 0 100% Training 479.5 0.7 0.7 0.0 0 0 0 0 100% Project Management 205.5 0.3 0.3 0.0 0 0 0 0 100% Total Capacity Building 1,027.5 1.5 1.5 0.0 0.0 0.0 0.0 0.0 100% Total Base Cost (I+II) 107,113.7 156.4 90.9 13.0 19.4 7.5 11.2 14.3 58% B. Contingencies Physical contingency 10,711.4 15.6 0.0 3.1 4.7 1.8 2.8 3.3 0% Price contingency 7,761.5 11.3 0.0 2.1 3.3 1.3 1.8 2.8 0% Total Contingencies 18,472.9 26.9 0.0 5.2 7.9 3.1 4.6 6.1 0% C. Financing charges during implementation Interest during implementation - ADB Loan 6,146.3 9.0 9.0 0.0 0.0 0.0 0.0 0.0 100% Commitment charges - ADB Loan 89.0 0.1 0.1 0.0 0.0 0.0 0.0 0.0 100% Total Financing charges during implementation 6,235.3 9.1 9.1 Total Project Costs (A+B+C) 131,822.0 192.4 100.0 18.2 27.4 10.6 15.8 20.3 52% Financing by Source of funds 52% 9% 14% 6% 8% 11% Exchange rate: 6.85 CNY to 1US$ Table SA D5 Xinjiang Urban Transport and Environmental Improvement Project Costs and Financing by Expenditure Account Altay City Government CNY (ten thousand) ($ Million) % of ADB Item Loan ADB Altay City Total ADB Altay Total Share A. Base Costs I. Construction Civil Works 7,823.11 5,413.96 13,237.07 11.43 7.91 19.34 59% Equipment 4,390.85 0.00 4,390.85 6.41 0.00 6.41 100% Land Aquisition and Resettlement 0.00 1,996.71 1,996.71 0.00 2.91 2.91 0% Environmental Protection 0.00 51.85 51.85 0.00 0.08 0.08 0% Survey, research, design & consulting services 0.00 1,453.84 1,453.84 0.00 2.12 2.12 0% Subtotal (I) 12,213.96 8,916.36 21,130.32 17.84 13.02 30.86 58% II. Capacity Building Consulting Services 68.50 0.00 68.50 0.10 0.00 0.10 100% Training 95.90 0.00 95.90 0.14 0.00 0.14 100% Management 41.10 0.00 41.10 0.06 0.00 0.06 100% Subtotal (II) 205.50 0.00 205.50 0.30 0.00 0.30 100% Total - Base costs (I+II) 12,419.46 8,916.36 21,335.82 18.14 13.02 31.16 58% B. Contingencies Supplementary Appendix D Physical Contingency 0.00 2,135.72 2,135.72 0.00 3.12 3.12 0% Price Contingency 0.00 1,450.86 1,450.86 0.00 2.12 2.12 0% Total - Contingencies 0.00 3,586.57 3,586.57 0.00 5.24 5.24 0% C.