Completion Report Project Number: 33442 Loan Number: 1850 July 2008 PRC: Ganzhou–Longyan Railway Project CURRENCY EQUIVALENTS Currency Unit – yuan (CNY) At Appraisal At Project Completion 1 September 2001 31 March 2007 CNY1.00 = $0.1208 $0.1293 $1.00 = CNY8.2768 CNY7.7342 ABBREVIATIONS ADB – Asian Development Bank BOEPTC – Beijing Oasis Environmental Protection Technology Company DMIS – dispatch management information system EA – executing agency EIA – environmental impact assessment EIRR – economic internal rate of return FCTIC – Foreign Capital and Technical Import Center FIRR – financial internal rate of return GDP – gross domestic product GLR – Ganzhou–Longyan Railway ICB – international competitive bidding M&E – monitoring and evaluation MOR – Ministry of Railways NRA – Nanchang Railway Administration PPTA – project preparatory technical assistance PRC – People’s Republic of China RCSO – railway construction support office RI-SJU – Research Institute of the Southwest Jiaotong University WACC – weighted average cost of capital NOTE In this report, "$" refers to US dollars. Vice President C. Lawrence Greenwood, Jr., Operations 2 Director General Klaus Gerhaeusser, East Asia Department (EARD) Country Director Robert Wihtol, People’s Republic of China Resident Mission, EARD Team leader Wang Fang, Financial Management Officer, EARD Team members Zhu Wenlong, Resettlement Officer, EARD Niu Zhiming, Project Officer (Environment), EARD Gao Yanli, Assistant Project Analyst, EARD CONTENTS Page BASIC DATA ii MAPS vi 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. Consultant Recruitment and Procurement 6 I. Performance of Consultants, Contractors, and Suppliers 6 J. Performance of the Borrower and the Executing Agency 6 K. Performance of the Asian Development Bank 7 III. EVALUATION OF PERFORMANCE 7 A. Relevance 7 B. Effectiveness in Achieving Outcome 8 C. Efficiency in Achieving Outcome and Outputs 8 D. Preliminary Assessment of Sustainability 9 E. Impact 9 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 12 A. Overall Assessment 12 B. Lessons Learned 12 C. Recommendations 13 APPENDIXES 1. Project Framework 15 2. Chronology of Major Events in the Project’s History 18 3. Project Costs and Financing Plan 20 4. Projected and Actual Contract Awards and Disbursements 21 5. Planned and Actual Implementation Schedule 22 6. Organization Chart 23 7. Compliance with Covenants 24 8. Contract Packages Financed by the Asian Development Bank 29 9. Environmental Impact Analysis 37 10. Evaluation of Land Acquisition and Resettlement Activities 40 11. Economic Reevaluation 46 12. Financial Reevaluation 49 13. Social Impact and Poverty Reduction in the Project Area 54 BASIC DATA A. Loan Identification 1. Country People’s Republic of China 2. Loan Number 1850 3. Project Title Ganzhou–Longyan Railway Project 4. Borrower People's Republic of China 5. Executing Agency Ministry of Railways 6. Amount of Loan $200,000,000 7. Project Completion Report PCR: PRC 1034 B. Loan Data 1. Appraisal – Date Started 10 May 2001 – Date Completed 26 May 2001 2. Loan Negotiations – Date Started 27 August 2001 – Date Completed 29 August 2001 3. Date of Board Approval 30 October 2001 4. Date of Loan Agreement 21 December 2001 5. Date of Loan Effectiveness – In Loan Agreement 21 March 2002 – Actual 2 April 2002 – Number of Extensions 1 interim extension 6. Closing Date – In Loan Agreement 31 December 2006 – Actual 16 January 2008 – Number of Extensions 2 7. Terms of Loan – Interest Rate LIBOR-based – Maturity (number of years) 25 – Grace Period (number of years) 5 8. Terms of Relending (if any) not applicable – Interest Rate – Maturity (number of years) – Grace Period (number of years) – Second-Step Borrower iii 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 2 April 2002 9 October 2007 66 months Effective Date Original Closing Date Time Interval 2 April 2002 31 December 2006 57 months b. Amount ($) Last Category Original Revised Amount Net Amount Amount Undisbursed Allocation Allocation Canceled Available Disbursed Balancea 1 Civil Works 95,200,000 112,710,000 0 112,710,000 112,119,737 590,263 2 Equipment 82,200,000 85,000,000 0 85,000,000 84,999,086 914 and Materials 3 Consulting 300,000 290,000 0 290,000 265,995 24,005 Services 4 Front-End Fee 2,000,000 2,000,000 0 2,000,000 2,000,000 0 5 Unallocated 20,300,000 0 0 0 0 0 Total 200,000,000 200,000,000 0 200,000,000 199,384,818 615,182 a Canceled at loan closing. 10. Local Costs (ADB-Financed): None C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 254.7 199.4 Local Currency Cost 520.3 582.0 Total 775.0 781.4 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower-Financed 531.1 529.6 ADB-Financed 198.0 197.4 Other External Financing 0.0 0.0 Total 729.1 727.0 IDC Costs Borrower-Financed 43.9 52.4 ADB-Financed 2.0 2.0 Other External Financing 0.0 0.0 Total 45.9 54.4 ADB = Asian Development Bank, IDC = interest during construction. iv 3. Cost Breakdown by Project Component ($ million) Component Appraisal Actual Estimate A. Base Cost 1. Civil Works 353.8 446.3 2. Railway Track and Bridges (including rails, sleepers, 124.7 64.2 ballast, bridge beams) 3. Signaling, Communications, and TMIS 26.6 29.1 4. Electric Power 17.4 16.2 5. Operational Equipment 31.4 45.8 6. Buildings and Facilities 34.3 41.5 7. Land Acquisition, Compensation, and Resettlement 34.4 40.3 8. Environmental Protection, Mitigation, and Monitoring 10.0 10.0 9. Administration, Consulting Services, and 20.3 33.6 Miscellaneous Costs B. Contingencies 1. Physical 43.0 0.0 2. Price 33.2 0.0 C. IDC and Front-End Fee 45.9 54.4 Total 775.0 781.4 IDC = interest during construction, TMIS = transport management information system. 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants For Construction Supervision January 2002 November2001 For Marketing and Business Development July 2006 Completion of Engineering Designs October 2001 August 2002 Civil Works Contract Date of Award January 2002 May 2002 Completion of Work March 2006 October 2004 Equipment and Supplies First Procurement July 2003 October 2002 Last Procurement June 2006 June 2006 Completion of Equipment Installation June 2006 July 2007 Start of Operations Completion of Tests and Commissioning December 2006 March 2005 Beginning of Start-Up July 2006 April 2005 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From March 2002 to September 2004 Satisfactory Satisfactory From October 2004 to December 2007 Satisfactory Highly Satisfactory v D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Membersa Fact-Finding 27 February–16 March 2001 5 72 a, b, d, e, f Appraisal 10–26 May 2001 4 60 a, b, c, d Loan Negotiations 27–29 August 2001 4 12 a, c, g, h Special Loan Administration 4–11 December 2001 1 8 a Review Inception Mission 25–30 November 2002 3 18 i, j Review 1 6–10 September 2003 2 10 i, j Review 2 7–13 December 2004 2 14 i, j Joint Review and Handover 13–16 December 2005 3 12 i, j, k Review 3 19–22 September 2006 3 12 j, k, l Project Completion Review 15–19 October 2007 4 20 e, j, k, l a a = engineer, b = financial analyst, c = counsel, d = economist, e = environment specialist, f = social development specialist, g = programs officer, h = control officer, i = transport specialist, j = project analyst, k = finance officer, l = resettlement officer. 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