Document of The World Bank Report No: ICR2142 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD 4853-CHA) ON A LOAN IN THE AMOUNT OF USD$300 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A SHAANXI ANKANG ROAD DEVELOPMENT PROJECT June 13, 2013 China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region CURRENCY EQUIVALENTS Currency = Renminbi (RMB) Currency Unit = Yuan (Y) Appraisal Completion Effective January 2007 Effective December 2012 RMB 1.00 = US$ 0.12852 RMB 1.00 = US$0.15874 US$ 1.00 = RMB 7.7807 US$ 1.00 = RMB6.2997 FISCAL YEAR January 1 �December 31 ABBREVIATIONS AND ACRONYMS AADT = annual average daily traffic AM = aide-memoire AMCB = Ankang Municipal Communications Bureau AME = Ankang�Maoba Expressway CAS = country assistance strategy CPS = country partnership strategy EA = executing agency EMF = environment management framework EIRR = economic internal rate of return EMP = environment management plan FFFPO = Foreign Fund Financed Project Office FIRR = financial internal rate of return IA = implementing agency ICB = international competitive bidding ICR = implementation completion and results ISP = institutional strengthening program LAR = land acquisition and resettlement LRIP = local roads improvement program NCB = national competitive bidding PCU = passenger car unit PDO = project development objectives PMS = pavement management system RAP = resettlement action plan RMB = Renminbi (Chinese currency) RP = resettlement plan RPF = resettlement policy framework SPCD = Shaanxi Provincial Communications Department SPFD = Shaanxi Provincial Financial Department SPHB = Shaanxi Provincial Highway Bureau STC = short term consultant Vice President: Mr. Axel van Trotsenburg, EAPVP Country Director: Mr. Klaus Rohland, EACCF, EACCF Sector Manager: Mr. Mark Lundell, EASCS Task Team Leader: Mr. Xiaoke Zhai, EASCS ICR Team Leader: Mr. Xiaoke Zhai, EASCS People’s Republic of China Shaanxi Ankang Road Development Project CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design ............................................. 1 2. Key Factors Affecting Implementation and Outcomes ............................................. 5 3. Assessment of Outcomes ......................................................................................... 11 4. Assessment of Risk to Development Outcome ....................................................... 17 5. Assessment of Bank and Borrower Performance .................................................... 18 6. Lessons Learnt ......................................................................................................... 20 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners ......... 21 Annex 1. Project Development Objectives ................................................................... 23 Annex 2. Project Costs, Financing, and Loan Allocation ............................................. 25 Annex 3. Institutional Strengthening Programs ............................................................ 27 Annex 4 Summary of the Land Acquisition and Resettlement ................................... 28 Annex 5. Economic5and Financial Analysis ................................................................ 29 Annex 6. Status of Loan Covenants.............................................................................. 38 Annex 7. Bank Lending and Implementation Support/Supervision Processes ............ 40 Annex 8. Beneficiary Survey Results ........................................................................... 43 Annex 9. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 47 Annex 10. Comments of Cofinanciers and Other Partners/Stakeholders ..................... 49 Annex 11. List of Supporting Documents .................................................................... 50 MAP A. Basic Information Shaanxi Ankang Road Country: China Project Name: Development Project ID: P075613 L/C/TF Number(s): IBRD-48530 ICR Date: 06/17/2013 ICR Type: Core ICR PEOPLE'S REPUBLIC Lending Instrument: SIL Borrower: OF CHINA Original Total USD 300.00M Disbursed Amount: USD 300.00M Commitment: Revised Amount: USD 300.00M Environmental Category: A Implementing Agencies: Shaanxi Provincial Communications Department Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 05/11/2005 Effectiveness: 08/10/2007 08/10/2007 Appraisal: 06/19/2006 Restructuring(s): 06/22/2012 Approval: 03/13/2007 Mid-term Review: 04/22/2010 07/05/2010 Closing: 06/30/2012 12/31/2012 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Low or Negligible Bank Performance: Satisfactory Borrower Performance: Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Satisfactory Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Satisfactory Satisfactory Performance: Performance: i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any Quality of No None time (Yes/No): Supervision (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Roads and highways 99 90 Sub-national government administration 1 10 Theme Code (as % of total Bank financing) Administrative and civil service reform 17 17 Infrastructure services for private sector development 33 33 Injuries and non-communicable diseases 17 17 Rural services and infrastructure 33 33 E. Bank Staff Positions At ICR At Approval Vice President: Axel van Trotsenburg James W. Adams Country Director: Klaus Rohland David R. Dollar Sector Manager: Mark R. Lundell Jitendra N. Bajpai Project Team Leader: Xiaoke Zhai Aurelio Menendez ICR Team Leader: Xiaoke Zhai ICR Primary Author: Chuntai Zhang F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The objective of the Project is to assist the Borrower in improving passenger and freight traffic flows in an efficient and safe manner along the transport corridor from Ankang to Maoba in Shaanxi Province by: (i) enhancing road infrastructure capacity and network integration along the transport corridor; (ii) increasing accessibility to markets and social services for the lower-income families in the rural areas of Ankang; and (iii) strengthening Shaanxi Provincial Communications Department's capacity in managing ii the increasing number of kilometers of roads under its responsibility in Shaanxi Province and, in particular, within Ankang region. Revised Project Development Objectives (as approved by original approving authority) (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Indicator 1 : Freight rate for a shipment from Ankang to Wanyuan (RMB/ton) Value quantitative or 143 83 230 Qualitative) Date achieved 12/31/2005 12/31/2011 12/31/2012 Comments The indicator was not achieved. The nominal and real freight rates increased by (incl. % 61% and 20 % respectively due to high fuel and labor price inflation and toll rate achievement) on the new expressway. Indicator 2 : Travel time on existing highway and AME (hours) Value S310: 5.4 5.3 S310: 3.0 quantitative or G210: 4.1 3.7 G210: 2.5 Qualitative) AME: N/A 1.1 AME: 1.0 Date achieved 12/31/2005 12/31/2011 12/31/2012 2005 Comments The indicator was achieved and actually exceeded by a wide margin. Travel time (incl. % on S310 and G210 was reduced about 44% and 39% respectively, comparing achievement) with the targeted values of 1.9% and 9.8%. Accident rate on existing highway and AME (total accidents per year (fatal Indicator 3 : accidents per year)) Value S310: 40(2) 38(2) S310: 36(8) quantitative or G210: 154(26) 149(26) G210: 95(10) Qualitative) AME: N/A 35(13) 126(2) Date achieved 12/31/2005 12/31/2011 12/31/2012 Comments The indicator was partially achieved. The accident reduction on S310 and G210 (incl. % well exceeded the targeted values of 5% and 3% respectively. But the total achievement) accident number on the AME was larger than the targeted. (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Indicator 1 : Traffic Volume (PCU/day) Value S310: 1384 850 S310: 2715 iii (quantitative G210: 3315 2050 G210: 3463 or Qualitative) AME: N/A 5870- 6360 AME: 3049 (AADT-vehicle) Date achieved 12/31/2005 12/31/2011 12/31/2012 Comments The indicator was not achieved due to the impact of removal of toll stations on (incl. % S310 and G210 in 2011 and higher toll rate on the AME. Furthermore, some achievement) connected expressways were still under construction. Average traffic volume on rural roads (no. of vehicles for baseline and Indicator 2 : increase % after rehabilitation) Value County, township road: County, township 5% per year (quantitative 434 road: 508 3% per year or Qualitative) Village road: 87 Village road: 207 Date achieved 12/31/2005 12/31/2011 12/31/2012 The indicator was achieved. The traffic volume increased much faster than Comments targeted. The average traffic volume increased about 17% on the sampled (incl. % county/township roads and 138% on the sampled village roads respectively in achievement) 2012. Average travel time on rural roads (minutes for baseline and decrease % after Indicator 3 : rehabilitation) 50% per year in Value County, township road: County, township each yearly batch (quantitative 150 road: 120 50% per year in or Qualitative) Village road: 30 Village road: 40 each yearly batch Date achieved 12/31/2005 12/31/2011 12/31/2012 Comments The average travel time on improved rural roads was not reduced as targeted due (incl. % to the strict enforcement of speed control by traffic police in recent years. achievement) Freight rate on rural roads (RMB/ton-km for baseline and decrease % after Indicator 4 : rehabilitation) 30% per year in Value County, township road: County, township each yearly batch (quantitative 0.8 road: 1.2 40% per year in or Qualitative) Village road: 2.5 Village road: 1.2 each yearly batch Date achieved 12/31/2005 12/31/2011 12/31/2012 Comments The indicator was partially achieved. Freight rate on County and Township roads (incl. % increased due to the growing economy in the region and the high inflation of achievement) labor and fuel prices. Indicator 5 : Passenger services (buses/day for baseline and increase % after rehabilitation) Value County, township road: County, township 5% per year (quantitative 30 road: 106 +2 veh. per year or Qualitative) Village road: 0 Village road: 32 Date achieved 12/31/2005 12/31/2011 12/31/2012 Comments The indicator was achieved. Bus services increased from 30 to 106 vehicle-trips (incl. % per day on monitored county/township roads and from 0 to 32 on monitored achievement) village roads. Percentage of provincial road network with up-to-date information on its Indicator 6 : condition (percent) Value 10% NA 100% iv (quantitative or Qualitative) Date achieved 12/31/2005 12/31/2011 12/31/2012 Comments The indicator was achieved. The road condition data of all the national and (incl. % provincial highways were annually collected in Shanxi province. achievement) Indicator 7 : Impact analysis carried out (status) Value 3 times in YR1, 3 times (quantitative NA YR3, and YR5 implemented or Qualitative) Date achieved 12/31/2005 12/31/2011 12/31/2012 Comments The indicator was achieved. The baseline survey was carried out in June 2009, (incl. % and another two follow-up surveys and evaluation were carried out in 2010 and achievement) 2012 respectively. Indicator 8 : Training and study tour programs Value No. of trained staff: N/A 70% positive 135 persons (quantitative Evaluation of activities: rating every year 98% positive rating or Qualitative) N/A Date achieved 12/31/2005 12/31/2011 12/31/2012 Comments The indicator was achieved. Total 135 persons were trained and positive rating of (incl. % training reached to 98% in 2012. achievement) G. Ratings of Project Performance in ISRs Actual Date ISR No. DO IP Disbursements Archived (USD millions) 1 06/25/2007 Satisfactory Satisfactory 0.00 2 06/28/2008 Satisfactory Satisfactory 10.00 3 07/20/2008 Satisfactory Satisfactory 10.00 4 02/11/2009 Satisfactory Satisfactory 49.49 5 03/21/2010 Satisfactory Moderately Satisfactory 212.75 6 10/10/2010 Satisfactory Satisfactory 300.00 7 01/24/2012 Satisfactory Satisfactory 300.00 8 12/24/2012 Satisfactory Satisfactory 300.00 H. Restructuring (if any) ISR Ratings at Amount Board Restructuring Disbursed at Restructuring Reason for Restructuring & Approved Restructuring Date(s) Key Changes Made PDO Change DO IP in USD millions The Loan closing date was 06/22/2012 S S 300.00 extended from June 30, 2012 to v ISR Ratings at Amount Board Restructuring Disbursed at Restructuring Reason for Restructuring & Approved Restructuring Date(s) Key Changes Made PDO Change DO IP in USD millions December 31, 2012 to complete local roads under LRIP and overseas study tours and training. I. Disbursement Profile vi 1. Project Context, Development Objectives and Design 1.1 Context at Appraisal Ankang Municipality is located in the southern mountainous territory of Shaanxi Province and has strong potential for expansion of agricultural, mineral, and hydropower industries, and development of tourism. However, lack of adequate transport accessibility and poor quality of road network has become major constraints to the socioeconomic development of the Ankang region. As of 2004, eight out of the ten counties in Ankang Municipality were officially designated as poor according to the national criteria. As part of the 11th Five-Year Plan (2006�2010), the government of China was committed to promote a “harmonized society�, and to “balance and coordinate� the developments of the advanced regions along the coast and the economically lagging middle, west and northeast regions. To achieve this goal, China laid out the strategy to “develop the west, revitalize the northeast, renew the middle, and keep the leading position of the east� through interaction, supplementation, and integration among regions. For implementing the strategy, the governments at both central and provincial levels addressed the transport needs of Shaanxi Province through two main investment interventions, including (i) construction of the highway transport corridor of Arongqi� Xi’an�Chongqing�Beihai,1which facilitated the north-south transport communications in the country and, particularly, of the western regions to the more developed southeastern coastal regions; and (ii) improvement of the interconnecting provincial, county and local road network linking the rural areas in the area of influence of the main expressways to maximize the development impact of those highways. These interventions and strategies were in line with the Bank’s FY03-05 Country Assistance Strategy (CAS) and the FY06-10 Country Partnership Strategy (CPS), 2 and those set under the China 11th Five-Year Socioeconomic Development Plan for the period 2006�2010, 3 in particular in their aim at improving the investment climate and addressing the needs of disadvantaged groups and underdeveloped regions. Ultimately, these interventions would lead to improved productivity in the rural areas, enhanced competitiveness in inter- and intra-provincial trade, and strengthened cooperation between central and western regions. 1.2 Original Project Development Objectives and Key Indicators The objective of the Project was to assist the Borrower in improving passenger and freight traffic flows in an efficient and safe manner along the transport corridor from 1 The Ankang-Maoba Expressway (AME) under the Project is one section of the expressway corridor in the national expressway system (Lanzhou�Haikou (G75) with total distance of 2,570 km). 2 World Bank, “County Partnership Strategy for the People’s Republic of China for the period of 2006� 2010�. May 23, 2006 3 “Outline of China 11thFive-Year Socioeconomic Development Plan (2006-2010)�, approved by 10thChina National People’s Congress on March 14, 2006. 1 Ankang to Maoba in Shaanxi Province by: (i) enhancing road infrastructure capacity and network integration along the corridor of Ankang�Maoba; (ii) increasing accessibility to markets and social services for the lower-income families in the rural areas of Ankang; and (iii) strengthening Shaanxi Provincial Communications Department's capacity in managing the increasing number of kilometers of roads under its responsibility in the Shaanxi Province and, in particular, within Ankang region. The assessment of the achievement of the project development objective (PDO) would be carried out through the measurement of the outcome indicators, including: reduction in average freight rates, travel times, and accident rates along the corridor to be constructed; increasing in traffic flows and in passenger and freight services along the rehabilitated local roads; higher percentage of the national/provincial road network with updated information on its condition; and enhanced knowledge and application of updated road management approaches. Annex1 is the PDO with the indicators and monitoring results. 1.3 Revised PDO and Key Indicators, and reasons/justification The PDOs and the key monitoring indicators were not revised during implementation. 1.4 Main Beneficiaries Based on the nature and the PDO of the Project, the main beneficiaries include the following groups: The AME users. The Ankang�Maoba Expressway (AME) is one section of an arterial transport corridor connecting the northwestern China to the seaports in the south. The transporters and passengers on the AME are the primary beneficiaries of the Project. It was estimated at appraisal that the average traffic on the AME would be about AADT 10,300 vehicles in 2030. 4 The local road users. About 1,391.57 km of rural roads were rehabilitated under the Project, which would substantially improve the connectivity in the project area. The transporters and passengers using the local roads would be considerably benefited due to decreased vehicle operation cost and shorter travel times. All peoples in the project area. All people in the project area benefited from the construction of the AME and rehabilitation of the local roads facilitate and stimulate the socioeconomic development in the area (about 3 million in 2004). Their livelihood was improved by more working opportunities during and after the Project, increased income from farm products, better road conditions for accessing education and health care, activated socioeconomic activities in the project area, etc. Road development and administration agencies. Substantial experiences would be gained by the road administrators in the provincial, municipal and county levels through the 4 AADT = annual average daily traffic 2 project implementation. The staffs of the road administration and operation agencies have been trained through the capacity building programs under the Project in the subjects of highway management, planning, and evaluation, project management, pavement design and technologies, and road maintenance. Equipment for enhancing road maintenance would be purchased and used to improve the capacity of road maintenance in the project area. 1.5 Original Components At appraisal, the Project was comprised of three components: Component A: Ankang�Maoba Expressway (AME) [Estimated cost US$684.4 million - 93.1% of the total project cost - of which US$257.3 million would be financed by the Bank loan] The AME component included the construction of an 87 km expressway connecting Ankang and Maoba, which is close to the border with Sichuan Province. The AME was designed to be four lanes with a designed speed of 80-110 km/hour, six interchanges, relevant ancillary buildings, and required electrical and mechanical (E&M) facilities. It also required the acquisition of land and the resettlement of people. The design of the AME had paid adequate consideration to road safety features and had minimized the social and environmental impacts. A joint foreign and local consulting team had been set up to supervise the construction of the AME. Component B: Local Roads Improvement Program (LRIP) [Estimated cost US$47.2 million - 6.4% of the total project cost - of which US$40.0 million would be financed by the Bank loan] The LRIP component aimed at improving interconnections between provincial, county and village roads in the rural areas surrounding the AME corridor. The intervention consisted of rehabilitation of existing roadways, with adjustments to its width when necessary or upgrading existing non-motorized tracks to motorized substandard roadways when warranted by the number of beneficiaries with due consideration given to environmental impacts. The total length estimated to be financed under this component was about 1,480 km. The supervision of these works was carried out by a local consulting firm that was contracted by Ankang Municipal Communications Bureau (AMCB), and worked under the monitoring and direction of the Shaanxi Provincial Highway Bureau (SPHB). Component C: Institutional Strengthening Program (ISP) [Estimated cost US$2.6 million - 0.4% of the total project cost - of which US$2.0 million would be financed by the Bank loan] Subcomponent C1. Impact monitoring and evaluation study to measure the impacts of the road improvement under the LRIP on the socioeconomic development and transport conditions in the relevant areas of Ankang Municipality, and establishing a complementary knowledge base for future interventions on those types of roads across 3 Shaanxi Province. The study included the definition of the impact evaluation methodology and sample up to three surveys over the project implementation period towards providing a comprehensive assessment of the impacts of the road improvement program on the livelihood of the population. Subcomponent C2. Acquisition of road-condition data collection (auscultation) equipment for strengthening the information base of Shaanxi Provincial Communication Department (SPCD) that was necessary to make informative decisions on the allocation of maintenance resources and the correct prevention of the deterioration of the provincial and national roads under its responsibility. Subcomponent C3. Technical assistance for the use of the road-condition data collection equipment and the incorporation of the information into the pavement management system (PMS) installed at the SPCD. Subcomponent C4. Training and study tour for staff from the SPCD and the AMCB. The training activities focused primarily on: highway management, planning, and evaluation, mechanisms for contracting out maintenance, pavement design and technologies, and safety in highways and tunnels. 1.6 Revised Components During implementation, the project components remained unchanged, but with minor revisions as described in next sections. 1.7 Other significant changes Design changes for the AME. During the construction of the AME component, the SPCD proposed a design change on the Han River Bridge. The original deck-type steel-tube arch bridge was proposed to be replaced with a continuous rigid structure bridge. The Bank cleared the design change by considering that (i) the geological conditions could not allow for the economical construction of the foundations required for the originally planned arch bridge; (ii) the remoteness and inaccessibility of the site made the erection of the steel arch unfeasible, and (iii) the steel arch bridge might have higher maintenance costs than the proposed replacement. Changes for the local roads. The LRIP component was implemented by four batches: first batch of 26 roads; second batch of 46 roads; third batch of 33 roads; and fourth batch of one road. The total number of local roads rehabilitated was106 roads for a total length of 1,391.57 km, as compared to 108 roads of 1,480 km anticipated at appraisal. The two local roads excluded from the Project were improved under other projects using domestic funds. During implementation, the SPCD proposed, and the Bank agreed, to fully use domestic counterpart funds to finance reconstruction of the Yuzi Road (a section of S310), because this road had to be implemented together with the rehabilitation of damages caused by the severe flood in July 2010 for the sake of saving unnecessary repetitive costs and completing the drainage and sub-grade works before the upcoming rainy season in 2012. 4 Adjustment of the project costs and financing plan. During project implementation, the actual project costs for the AME were increased by about 19.5% (in terms of RMB) as compared to the original contract prices, among which about 90% of the cost increase was due to the price adjustments. The actual costs for the LRIP had little increase. In the meantime, the cost for the ISP was reduced by about 25.8% (in USD). Overall the total actual project cost was RMB8, 280.2 million (USD1, 217.3 million equivalents 5), about 44.8% higher than that at appraisal. Such cost changes were partly contributed by the price escalations and the depreciation of USD 6. Due to the project cost increase, the financing plan was also revised. At appraisal, the Project would be financed by the World Bank loan of USD 300 million, which was about 40.8% of the total project cost, and the rest would be financed by counterpart funds. At completion, the World Bank financing was reduced to 24.6% of the total cost and the government fund took 75.4%. Annex 2 provides the comparison of the actual project cost with the estimated cost at appraisal. Adjustment of the training and study tours. During implementation, a total of six overseas training and study tours were implemented, including two in 2009 and four in 2012 with total 615 person-days, which were less than that anticipated at appraisal. The reduction was mainly caused by tightened government’s restriction and domestic approval of overseas travels for government officials. For achieving the objectives of the institutional strengthening, more domestic training and study tours were organized. Upon completion, a total of nine domestic training and study tours were conducted for total 891 person-days. The details of the training and study tours are listed in Annex 3. 2. Key Factors Affecting Implementation and Outcomes 2.1 Project Preparation, Design and Quality at Entry Taking into account previous lessons learned. During project preparation, lessons of earlier projects, especially the expressway projects in Shaanxi Province, were well considered. The major lessons were incorporated in the project design and preparation, including (i) adding efforts to review the feasibility of the proposed investments and the quality of the engineering designs; (ii) refocusing on the sector agenda; (iii) complementing high-class roads with complementary component of lower-class roads; and (iv) defining and designing proper institutional strengthening component. For enhancing the engineering design, an international consulting team was commissioned by the Bank to conduct a thorough design review, including conducting a road safety audit. Furthermore, given that major variations often occur in projects, supplemental geological investigation was carried out during the detailed design stage, especially on the road sections with large bridges, tunnels, deep cuts, and high fills. In addition, eight specific technical studies were formulated and implemented during the engineering and construction stages to complement the design. 5 Converted at an weighted average exchange rate of USD1.00 = RMB6.80 for the project period of 2005-2012 6 The exchange rate was USD1.00=RMB7.78 at appraisal and USD1.00=RMB6.2997 at completion. 5 Project preparation and appraisal. During the appraisal mission to Shaanxi Province in June 2006, the objectives and monitoring indicators were well discussed. The appraisal mission also had substantial discussion about the connecting section between Maoba and the Shaanxi-Sichuan border 7. It was agreed that the connecting section of the expressway from Maoba-Bashan (about 10 km) would be constructed as a separate project and financed entirely by the government. Project scope and formulation. The AME was the main component under the Project. For maximizing the benefits of the Project, especially to the poor, large amount of local roads (about 1,480 km) were included in the Project. A socio-economic monitory program was also designed to monitor the project impacts. To implement the Project well and to ensure sustainable development of the road sector, institutional strengthening programs were designed under the Project by considering the existing institutional capacity for project implementation and road sector development in the province. Potential project risks. Potential risks of the project implementation and sustainability were identified, including mainly (i) optimistic assumptions on traffic growth; (ii) possible overrun of investment costs; (iii) lack of road maintenance; and (iv) improper application of safeguards procedures and policies. But, none of them was considered as High Risk. However, a series of mitigation measures were proposed, including mainly (i) improving technical design through sufficient topographical, geological and sub-surface investigations; (ii) enhancing project supervision by hiring local/foreign supervision team; (iii) strengthening project monitoring on the PDO, socioeconomic impacts, and RAPs; (iv) purchasing equipment for collecting road condition data; and (v) arranging properly the AME operation and management. Quality at Entry. In general, the project preparation and design was adequate and in good quality. The Bank’s Quality Assessment Group didn’t carry out a Quality at Entry Assessment (QAE) for this project. However, in retrospect, the freight rate indicator could have been designed better to take exogenous factors into account. For example, the freight rates depend not only on reduction in VOC savings, which the project had a direct control, but also on macroeconomic conditions, which the project could not control. 2.2 Implementation The overall implementation of the Project remained satisfactory throughout the project implementation period. The following are some main factors which influenced the project implementation. Monographic researches. The AME alignment goes through a complex mountainous area. To address the technical challenges of the geological and topographic complications and ensure smooth construction of the AME, the SPCD conducted eight monographic researches during the implementation as supplementary to the engineering design. These 7 Simultaneously, an expressway project in Sichuan Province was under preparation which would connect with the AME. However, there were a lot of discussions on the connecting point of the two expressways. 6 studies were funded by the SPCD. The researches were successfully implemented and the outputs were well used in the design and construction of the AME. Local roads improvement. The LRIP was implemented by four batches. The first batch of 26 roads was prepared during project appraisal. The rest roads were selected using the same criteria, comprising (i) helping eliminate main traffic bottlenecks; (ii) being located along the corridor around the AME to contribute to, and take advantage of, the transport benefits of the new AME; (iii) providing access to a poor area (under RMB 865 income per capita per annum); and (iv) minimal environmental impacts (as interventions focus on rehabilitation of the existing roads). Experiences of the first batch were well incorporated in the design and implementation of the rest local roads. At completion, 106 local roads were upgraded or rehabilitated, including 1 provincial road, 9 county roads, 12 township roads, and 84 village roads. Quality control and safety. For ensuring good quality of the Project, a quality control mechanism was established with clear allocation of responsibilities, detailed measures and regulations, adequate laboratory facilities, responsible international and domestic supervision consultancy, and large amount of on-site trainings. A detailed safety operation manual was developed and disseminated as a handbook to the construction staff for day-to-day compliance. During the implementation, special attention was paid to safety control, including construction safety, traffic safety, and flood protection during rainy seasons. There was no fatal construction accident reported during project implementation. For all completed road sections, acceptance tests and take-over were conducted. The completed AME and the LRIP roads were generally in good quality. Counterpart funds for the LRIP. The non-availability of counterpart funds for the LRIP remained an issue for a long time, which had negative impacts to the LRIP implementation. The Bank’s supervision missions raised this issue many times and requested the relevant government agencies to work together and provide sufficient counterpart funds in a timely manner, as well as requested Ankang Municipal Government to provide the required counterpart funds as promised. For such a reason, the Bank rated the Implementation Performance of the Project as “Moderately Satisfactory� on March 21, 2010. 8Eventually, the counterpart funds problem was resolved and provided to the Project. At completion, the total counterpart fund for the LRIP was about RMB256 million, which was financed by the provincial subsidy, municipal and county governments, and local roads development funds. Implementation progress. The overall work progress was within original schedule anticipated at appraisal. At early stage of the AME implementation, several contracts lagged behind the schedule, which was mainly caused by late commencement of three contractors, extreme rainfalls in 2008, very demanding geological and topographical conditions, difficult access to materials, and constrained working space for pre-casting and in-situ activities. However, the SPCD, the consultants and the contractors made great efforts to catch up with the progress. The AME was fully completed and opened to traffic 8 Bank’s ISR (sequence #5): Shaanxi Ankang Road Development Project, March 21, 2010 7 on May 31, 2011. For the local roads under the LRIP, most of them were completed before the end of 2011, including the rehabilitation of some roads which were already completed but damaged by the floods. However, the implementation of Dongda Road in Ziyang County, Gaoping Road in Hanbin District and Shiguan Road in Langao County was delayed and finally completed by September 30, 2012. Social Safeguards. The Project triggered the involuntary resettlement and the resettlement implementation was completed in line with the agreed Resettlement Plan (RP) and the resettlement policy framework (RPF). The project totally acquired 5,713 mu permanent lands (including 3,040 mu farmland), acquired 2,459 mu temporary lands, relocated 698 households with 2,998 persons, affected 11 enterprises, and invested RMB 262 million in resettlement implementation. Environment safeguards. The Project is categorized as Category A for environmental purpose due to the scale of the project and potential environmental and social impacts. Full environmental assessment was conducted during project preparation. An Environmental Assessment (EIA) and Environmental Management Plan (EMP) were prepared for the AME component. An Environmental Management Framework (EMF) was prepared for the LRIP component. During implementation, the FFFPO established a comprehensive environmental management structure comprised of an environmental management consultant, environmental supervision engineers (ESEs) and an environmental monitoring consultant, under the leadership of a dedicated environmental and safety management office of the FFFPO. A tiered environmental reporting system was in place. The ESEs and FFFPO carried out site surveys and field meetings regularly, issued correction notices as needed, monitored implementation status and performance. Monthly and quarterly environmental performance reports were prepared and reviewed. The requests and recommendations made by Bank supervision missions were closely followed up. Regular environmental quality monitoring was carried out by specialized environmental monitoring stations. Environmental training was carried out throughout the project implementation period. FFFPO staff, all supervision engineers and contractors participated in the training in a batched manner. 2.3 Monitoring and Evaluation Design, Implementation and Utilization At appraisal, a monitoring and evaluation (M&E) program was designed, which included (i) annual monitoring on the PDO results; (ii) socioeconomic impact survey and evaluation of the LRIP; and (iii) land acquisition and resettlement monitoring. PDO result monitoring. A result framework was designed during the project preparation, including a set of indicators for monitoring the achievement of the PDOs and the intermediate results, and the use of the result information, as well as data collection plan. 8 During implementation, a consulting entity was recruited to carry out the monitoring activities. The actual data were collected each year from 2006 to 2012 9 and compared with the target values anticipated in the monitoring framework. This system was used to assess during project implementation how well the objectives were being achieved. Except the freight rates missing the target (which was mainly caused by high labor and fuel costs), travel time and VOCs were significantly reduced and road safety was improved. In retrospect, the freight rate indicator was inadequately constructed and should have been redesigned during project implementation to isolate it from the impact of factors exogenous to the project. Socioeconomic monitoring and evaluation. Under the ISP, an impact monitoring and evaluation program was designed to carry out three survey and evaluation activities. During implementation, a consulting firm was recruited, who carried out three surveys and evaluation activities in June 2009, June 2010, and early 2012 respectively. The evaluation results clearly indicated that the LRIP had huge socioeconomic impacts to the local people. See Annex 9 for the details on the socioeconomic impact monitoring. Land acquisition and resettlement monitoring. An external consulting entity was recruited to carry out the resettlement monitoring and evaluation. Starting from November 2006, the consultants carried out 8 monitoring surveys, which covered 26 administrative villages in 8 townships of the project area. In the meantime, about 100 households were randomly selected as the monitoring samples. 8 monitoring and evaluation reports were submitted to the Bank timely. The final monitoring and evaluation report was prepared in June 2012, which well summarized the implementation of the land acquisition and resettlement, as well as its social impacts. 2.4 Safeguard and Fiduciary Compliance Rating: Satisfactory Social safeguard. The social safeguard implementation was satisfactory. The resettlement implementation strictly followed the RPs and the RPF prepared during the project preparation in terms of the principals and strategies defined in line with the OP 4.12, and the compensation rates determined by reflecting the Chinese regulations and the restoration demands of the affected people. All the affected were identified, consulted, compensated and resettled. The external resettlement monitor’s survey and evaluation concluded that the project affected households restored their income and housing condition. The resettlement implementation was based on a series of consultations, mainly on asset investigation and evaluation, residential selection, infrastructure restoration, and productive restoration. About 120 meetings with the affected and local population were held in regard to resettlement policy, measures of compensation and restoration information dissemination, grievance redress actions, etc. 9 Due to extension of the loan closing date, one more PDO monitoring was conducted in 2012. 9 Environment safeguards. The EMP implementation was satisfactory. Mitigation measures defined in the EMP were followed during implementation. There was ongoing engagement with communities during construction. Information disclosure, such as bulletin boards, of construction activities were installed to notify potentially affected people. For potentially high-impact construction activities, prior notification and consultation were carried out. A key environmental issue was soil erosion associated with construction activities due to complex mountainous topography and very limited construction space. Great efforts were made by contractors to minimize the negative impacts to the extent possible. Comprehensive slope protection, site rehabilitation and re-vegetation measures were taken. State-of-the-art engineering and vegetation measures were carried out to stabilize the slopes along the highway. Twenty eight disposal sites have been completely restored with proper protection, drainage system and re-vegetation measures. Mixing plants, beam pre-casting yards and worker camps were either located on road bed and sites for ancillary facilities to the highway, or finally reused by local communities. Upon construction completion, debris under viaducts/bridges was removed and the sites were leveled and re-vegetated. Overall, the impacts were effectively remediated upon completion of the construction. Financial Management. The overall financial management was satisfactory. The project financial management system provided adequate assurance so that the Bank loan proceeds were used for intended purpose with due efficiency and effectiveness during implementation. The SPCD generally complied with legal covenants to submit the annual audit reports and interim financial reports to the Bank. The key project financial staff of the SPCD has accumulated more knowledge and experience to improve their financial management capacity. However, some weaknesses and issues were also noted during implementation. For instance, design changes and variations were not properly processed and monitored, therefore related approvals were not timely obtained, which resulted in a shortfall of counterpart funds; delay in provision of counterpart funds for rural roads were continuously noted which delayed related implementation progress; and project financial staff at county level lacked necessary experience in managing Bank loan proceeds, which delayed disbursement and resulted in misstatement in the financial reports. Reporting and Monitoring. All the required reports were properly prepared and submitted to the Bank, including semi-annual progress reports, EMPs and RAPs for the LRIP, financial audit reports, training and study tour summaries, road maintenance budget and implementation reports, etc. 2.5 Post-completion Operation/Next Phase Ankang�Maoba Expressway. Upon completion, the AME operation has been handed over to Anchuan Branch Company (ABC) of Shaanxi Jiaotong Group Corporation. Established in May 2009, ABC is a state-owned enterprise with independent legal status and adequate financial management capability. Currently, ABC has 410 staff for managing 8 toll stations, 3 service areas, and 2 tunnel stations of the AME. A monitoring and control center is under operation. During the trial operation, a toll tariff for the AME 10 was approved by the provincial government. In Shaanxi Province, the expressway toll collection is carried out on the provincial network basis 10 and one toll clearance center is responsible to allocate the network toll to each expressway section through an account earmarked for toll collections. All toll revenues go to the provincial fiscal account, and the provincial government allocate fund annually for the AME operation and maintenance. The toll revenue was about RMB39.08 million in 2011 and RMB22.17 million in the first four months of 2012. The Bank’s mission found that all the AME property and facilities were maintained in good condition by a well-organized operation and maintenance mechanism. LRIP Roads. As a general practice in Shaanxi Province, the local roads are administrated and maintained by the AMCB. The provincial roads (e.g. S301 or Yuzi Road) are directly maintained by the AMCB; the county and township roads are maintained by county rural road administration bureaus through their road maintenance stations; and the village roads are maintained by townships and villages. The AMCB is responsible for monitoring the road conditions. Medium and large maintenance projects are financed by the provincial government and routine maintenance are financed by municipal and county governments. Periodical maintenance and large rehabilitation projects are contracted to external road engineering entities through public bidding. The Bank’s mission observed that the local roads under the Project were constructed in satisfactory quality and regular maintenance was in place. However, it was found that some roads were damaged or blocked by slope collapse during the rainy season. 3. Assessment of Outcomes 3.1 Relevance of Objectives, Design and Implementation The project objective is highly relevant to the overall development strategies of the central government and Shaanxi Provincial Government. The central government’s 12th Five Year Plan (2011-2015) has objectives below: 11 � Increasing people's incomes, reducing poverty and improving the living standards and quality of life. � Expanding access to basic public services, increasing the educational level of the population, and ensuring a stable and harmonious society. The opening of the AME has substantially improved the connectivity of the transport corridor linking the northwest to the coastal areas, which reduces barriers to development and trade. The local roads development increased access to services and reduced social exclusion. The ISP has also improved the government’s performance especially in transport planning, project implementation, and road maintenance. 10 While entering the provincial expressway network, a vehicle is given an IC card. The vehicle only pays the toll once while getting out the expressway network. 11 “Outline of China 12thFive-Year Socioeconomic Development Plan�, approved by 11thChina National People’s Congress on March 14, 2011. 11 The project objective and design are also highly consistent with the Outcomes 2.1, 2.2, 2.3 and 2.4 of Strategic Theme Two: Promoting more equitable development of Bank’s China Country Partnership Strategy (2013�2016). 3.2 Achievement of Project Development Objectives Improved Connectivity The AME is one section of the national expressway corridor from Lanzhou to Haikou (G75). Most sections of this expressway corridor had already been completed. The opening of the AME has improved the performance for the whole transport corridor, as well as the connectivity in the project area. After the opening of the AME, travel time from Ankang to Maoba takes only 1 hour by the AME versus 3.8 hours on the existing parallel highway S310. The traffic volume on the AME was lower than targeted due to several reasons. Following the requirement of State Council (2009) to gradually remove toll stations on Class II highways, Shanxi province removed toll stations on S310 and G210 in 2011, which had negative impact on traffic diversion to the AME. Besides, the toll rate of RBM 1.0 per vehicle-km on the AME is much higher than that of other expressways in Shanxi (around RMB 0.5 per vehicle-km), which made it less attractive to drivers. Furthermore, some connected expressways were still under construction, which impacts through-traffic. However, the AME traffic in April 2012 jumped to AADT 2,343 vehicles after the opening of the Sichuan section. The annual average in 2012 reached 3,049 vehicles, more than double than that of 2011. According to the traffic forecast, the traffic on the AME would meet the target value in 2018 (about 6,585 PCU per day). Therefore, the indicator will be met with some delayed time, but did not have material impact on the economic rate return of the AME, which stands at 15 percent at completion versus 15.8 percent at appraisal. The improvement of the rural roads has substantially increased connectivity in the project area and induced more traffic on the roads. According to the PDO monitoring result, the average daily traffic on the sample roads were 243 vehicles for the county/township roads and 105 vehicles for the village roads in 2009. Such traffic increased to 508 vehicles and 207 vehicles in 2012 respectively, with average 28% and 25% increases per year. Socioeconomic Impacts Reduced transport cost. According to the PDO monitoring result, the average freight transport cost was RMB 230 per ton from Ankang to Wanyuan in 2012. The average freight transport cost on the county/township roads was RMB 1.2 per ton-km. Though the savings of vehicle operating cost (VOC) ranged from RMB0.43 to 3.83 per vehicle-km for different kinds of vehicles on the AME and from RMB0.15 to 0.07 per vehicle-km for different kinds of vehicles on the rural roads as shown in the Ex-post economic evaluation, the savings of VOC did not translate to a reduction in freight price. The nominal freight rate increased by 61%, and the real increase was 20%. The real tariff increase resulted from high costs of fuel and labor and high toll rates truckers needed to 12 pay on the new expressway. The fuel price increased by 101% between 2005 and 2010, and Labor Price Index increased by 79% over the same period. In addition, the toll rate of RMB 1.0 per vehicle-km was higher than the average rate of RMB 0.5 per vehicle-km in the province. These increases are exogenous to the project. Decreased traveling time. According to the PDO monitoring results, the average travel time on S310 and G210 was reduced about 44% and 39% respectively. Travel time from Ankang to Maoba was reduced from 3.8 hours on the parallel existing highways to 1 hour on the AME due to the higher design speed and shorter distant. On the county/township roads, the average travel time was reduced by 20%. After upgraded from gravel roads to pavement roads, average travel time on improved local roads was not reduced as targeted. It was due to the strict enforcement of speed control by traffic police in recent years, which did not exist when measuring the baseline and setting the target values at the appraisal. Reduced accidents. The accident rates on the parallel highways had significant reduction. According to the monitoring results, the total number of accidents on S310 and G210 were reduced about 10% and 38% respectively, exceeding the targeted values of 5% and 3%. But the total number of accidents on the AME was much larger than the targeted value and fatality accidents were much lower than the targeted value. The large deviations between the targeted and the actual figures reflected the challenge of forecasting accidents for a new road. Compared with the accident rate on a similar expressway (Shiyan-Tianshui Expressway, intersecting with the AME), the accidents on the AME was slightly lower. In 2011, there were 84 accidents and 2 fatal accidents on the AME but 153 accidents and 3 fatal accidents on Shiyan-Tianshui Expressway. In 2012, there were 126 accidents and 2 fatal accidents on the AME but 94 accidents and 5 fatal accidents on Shiyan-Tianshui Expressway. Improved transport service. Bus service in rural areas was increased. In 2012, bus services increased from 30 to 106 vehicle-trips per day on monitored county/township roads and from 0 to 32 on monitored village roads. The improvement of rural road conditions facilitates the implementation of public transport development policy in rural areas of Ankang Municipality and the access of local villagers to markets and social services. Strengthened Institutional Capacity Capacity improvement for large project implementation. A complete institutional framework was established and well operated to manage the implementation of the Project. During implementation, the project executing and implementing agencies worked closely with the supervision consultants and gained a lot of experiences in large project implementation management. The training and study tours programs under the Project brought a lot of fresh ideas and experience to the staff at the provincial, municipal and county levels. Altogether, 6 overseas study tours, 9 domestic training and study tours, and a large amount of on-the-job trainings were conducted. Totally, 135 persons were involved in this capacity building programs. Incorporating the Bank’s safeguard policies 13 and implementing socioeconomic monitoring programs also efficiently enhanced the institutional capacity in the road sub-sector of Shaanxi Province. Engineering capability for highway projects in mountainous areas. Eight monographic researches were conducted to ensure smooth and successful implementation of the AME by considering its complexity, which focused on the technical and engineering issues, such as special geological location, long tunnel air circulation and fire protection, slope protection, bridge water proof, traffic control simulation technique, etc. The research outputs were well applied in the AME construction. The report and experiences will be shared with other similar highway projects in the province and other provinces. 3.3 Efficiency Economic Evaluation The economic internal rate of return (EIRR) was re-calculated at 15.3% for the whole project (15.0% for the AME and 18.5% for the local roads), which is lower than that estimated at appraisal. 12The lower EIRRs were mainly due to higher project investment costs, and lower traffic level in early years of operation. Nevertheless, the EIRR is higher than the Bank’s recommended discount rate of 12%, so that the project is still considered economically viable. The EIRR was subjected to sensitivity analysis to test different scenarios of costs and benefits. The sensitivity analysis results showed that the project would continue to be economically viable for all tested scenarios. If a 20% operation and maintenance cost increase were to be combined with a 20% benefit reduction, the EIRR would be 13.0% for the whole project. The sensitivity analysis also showed that the EIRR was more sensitive to changes in benefits. Therefore, the AME operator and the local governments should keep the roads in good condition to attract and facilitate more traffic. The details of the economic re-evaluation for the AME and the LRIP are in Annex 6. Financial Evaluation for the AME The AME has provision of toll revenue. On December 26, 2010, the provincial government approved a tariff for the toll collection to the vehicles using the AME. Before the opening of the connected expressway in Sichuan, the base toll level was RMB 0.60 per km for small passenger vehicles, which was increased to RMB 0.70 per km after the opening of the Sichuan expressway. The toll to the freight vehicles is collected on weight basis. The toll collection of the AME started on December 26, 2010. The toll revenue was RMB39.08 million in 2011 and RMB22.17 million in the first four months of 2012. Based on the actual revenue and assumption, the financial internal rate of return (FIRR) was calculated at 4.2% before tax and 2.3% after tax. If there is no any tax provision, the FIRR was 4.4%. 13 At appraisal, no such FIRR calculation was provided. The details of the financial evaluation for the AME are in Annex 6. 12 At appraisal, the EIRRs were 15.8% for the AME and 46.5% for the LRIP. 13 Currently, all the toll revenue goes to the provincial fiscal revenue with no separated tax provision. 14 3.4 Justification of Overall Outcome Rating Rating: Moderately Satisfactory In its design and implementation, the Project was and is still highly relevant with the government’s development objectives and the Bank’s CPS. The opening of the AME and the rehabilitation of the local road have significantly increased the connectivity in the project area and the accessibility to socioeconomic activities for the local people. The strengthened institutional capacity has contributed and will contribute substantially to the sustainable development of the road sub-sector in the province. However, the PDO indicator targets were only partially achieved. The Project is efficient by considering its robust EIRR and FIRR. Therefore, the overall outcome of the Project is rated Moderately Satisfactory. 3.5 Overarching Themes, Other Outcomes and Impacts (a) Poverty Impacts, Gender Aspects, and Social Development The project facilitates the movement of goods and persons in the southern of Shaanxi Province. The AME strengthened the link between the remote and mountainous areas to the east of China and the central Shaanxi, and the LRIP integrated the remote rural areas into the main economic and social network of urban areas by providing reliable all weather roads. Most of the poor villagers in the project areas benefited substantially from the local roads through access to public social services of health, education, agricultural extension, and provision of information. Such improvements reduced the perception of isolation and remoteness among the poor. The LRIP provided better connection between the hill villages and market places in town. This made it easier for women to purchase and sell agriculture and household good/products in which most women in rural areas were engaged, or to be employed in small shops, restaurants and markets in towns. Accordingly this increased income of women. The implementation of the project presented an opportunity for rural women to secure paid employment during the construction period. More convenient transportation also made it easier for girls to get more education in towns and county seats. (b) Institutional Change/Strengthening Human resources development. During implementation, advanced concepts and techniques of road development were adopted, covering project preparation, construction management, social and environment impacts, capacity building, etc. These should have a long-term influence on road projects in the province. Many road sub-sector staffs, especially in the municipal and county levels, were involved in the training and study tours, and gained fresh ideas and experiences regarding project implementation and road maintenance. 15 Foreign fund utilization. The Project is the third road project financed by the Bank in the province. From implementation of the Project, as well as the projects financed by other international organizations, the government has well recognized that utilizing foreign funds to road projects is not only to get financial support but also to bring in advanced international knowledge and experiences. The government expects to have more foreign financed road projects in the province. Pavement management system. By using the vehicles purchased under the Project, about 10,800 km of roads were tested for road roughness and 8,500 km for pavement defects, which included the whole 4,900 km expressway network and other major/trunk highways in the province. The collected data have been uploaded to a Road Pavement Management System (RPMS) installed and used by Shaanxi Provincial Highway Administration Bureau (SHAB) for road pavement management and maintenance planning. Still at a pilot stage with simple functions, the RPMS might be enhanced or re-constructed by using GIS technology and available road condition data in the future. By then, it would provide more meaningful information and technical supports to the road maintenance planning and management in the province. (c) Other Unintended Outcomes and Impacts Not applicable. 3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops As a sub-component of the ISP, a program on impact monitoring and evaluation was designed and conducted to measure the socioeconomic impacts of the local roads under the LRIP. The baseline survey was carried out in June 2009, and the other two follow-up surveys and evaluation were carried out in 2010 and 2012 respectively. The general conclusion of the surveys and assessments are summarized below. The details are in Annex 8. � The Gross Domestic Products (GDP) of the sample town/townships in the project area increased by 11.2%-17.2% per annum during 2008-2010. The rural net income increased in a faster pace, about 18.3%-36.2% per annum. The socioeconomic development in the project area was partly contributed by the improved transport infrastructure, including the AME and the local roads under the Project. � The improved transport infrastructure has efficiently facilitated the agriculture development in the project area, which allows the agriculture products being transported out at lower cost, less traveling time, and reduced damages. The total agriculture product value increased by 12.0%-13.7% per annum in the sample villages. The rural net income per capita increased by 15.5%-24.6% per annum. However, the project area is still relatively poor and income per capita is lower than the provincial average. 16 � Villagers in the project area now prefer to travel more often and longer distances to access product markets, job opportunities, and social services. In comparing with that in 2008, the average frequency of traveling to county seats was more than double in 2010. The traveling time per trip was also substantially reduced by about 20%-50%. However, the traveling cost was not reduced as anticipated due to significant fuel and labor price inflation. The number of vehicles owned by the sample villagers was about doubled in 2010 in comparing that in 2008. � The store/shop operators now travel more often to purchase commodities from bigger towns and/or markets. The frequency of traveling to bigger towns/markets by the store owners was increased by about 50% in 2010 in comparing with that in 2008. The travel time was reduced by about half due to better road conditions. The revenues of these stores increased at average 200%-500% in 2008-2010. The average annual transport cost for these business increased about 100%. But, the transport cost in comparing with the total revenue decreased from 6.7% in 2008 to 5.1% in 2010. � The public bus service on the sample county/township roads increased from 30 buses a day in 2005 to 92 buses a day in 2011. The bus services on the village roads increased from zero to 37 buses per day in 2011. In 2012, 93% of the villages in Ankang were connected with public transport services. Now, the transport providers prefer to travel longer distances with faster speed and in less time. 4. Assessment of Risk to Development Outcome Rating: Low In general, the AME and the local roads were constructed in good quality. Some benefits of the Project have been revealed and will be fully revealed along with the project operation in the next few years. The risk of development outcomes achievement is generally low. However, special attention should be paid to the following aspects. Traffic increase. The traffic forecast on the AME and the local roads are based on general development of traffic demand which is related to long-term economic development, regional cooperation, and rural development policies. If the economic development in the project area were to slow down, the traffic levels would be not as high as predicted. The benefits of the Project would be also lower. The provincial and municipal governments should develop policies and strategy to sustain the socioeconomic development, which may fully take advantage of the AME and the local roads under the Project to develop regional markets for farm products and local transport services. Toll level and revenue generation. The existing toll tariff of the AME was setup by the provincial government. Generally in China, the expressway toll level is high, which causes high transportation cost. In some provinces, the governments have started to adjust the toll level and also apply preferential toll levels to agricultural products. By lowering the toll level for the AME, less toll revenue would be generated and its financial 17 performance might be not as robust as calculated. In any case, the government should provide sufficient fiscal allocation to keep the AME well operated and maintained. Local roads maintenance. Historically, local roads maintenance was inadequate in terms of budget and capacity, which caused deterioration of some local roads. For sustainable development of the local roads, the governments in both provincial and municipal levels should allocate enough fiscal resources for the local road maintenance. In the meantime, institutional capacity should be enhanced by completing legislation and the regulation framework, applying standardized norms, improving construction capacity, strengthening road condition monitoring, etc. A GIS-based rural road maintenance information system should be developed for monitoring the road condition, supporting road maintenance planning, and assisting in project evaluation and preparation. Local roads network development. Completing the local roads network is very important. In the project area, a large amount of the local roads need to be constructed, rehabilitated, or improved. A completed road network may distribute the benefits of the trunk roads to further distance, attract and generate more traffic, and serve more people in the area. The government should continuously focus on local road network planning and development. 5. Assessment of Bank and Borrower Performance 5.1 Bank Performance (a) Bank Performance in Ensuring Quality at Entry Rating: Satisfactory The Project was the third Bank-financed highway project in Shaanxi Province. Experiences and lessons of preparing and implementing the previous two projects were appropriately assessed and incorporated in the Project. A strong Bank task team was formed, which was led by senior Bank staff and comprised of experts in different fields. During project preparation, the Bank appraisal has been thoroughly conducted with special attention on (i) local road development for maximizing the project benefits especially to the poor; (ii) quality of engineering designs and supervision arrangements for ensuring high quality construction; (iii) safeguard policies and measurements for minimizing the impacts to the local residents and environment; (iv) institutional strengthening for long-term sustainable development; and (v) including a connecting section with the Sichuan expressway. During project implementation, the PDO and project components remained unchanged. The Bank’s performance in ensuring quality at entry is rated Satisfactory. (b) Quality of Supervision Rating: Satisfactory The Bank team closely supervised and monitored the progress of implementation and timely identified emerging problems through the following three mechanisms: (1) 18 conducting supervision missions biannually to visit the construction sites to supervise the overall project implementation; (2) reviewing the semiannual project progress reports, annual audit financial reports and safeguards external monitoring reports; and (3) monitoring the result indicators provided each year. For closely supervising and managing the Project, a strong task team was in place throughout the whole project implementation. For strengthening the ISP implementation and project management, two- short term consultants (STC) were recruited to assist the team. A list of the Bank’s missions and task team members is in Annex 8. The Bank task team provided effective technical support and made appropriate interventions to help resolve problems that arose and mitigate potential risks faced by the project. The Bank’s interventions and support included the technical review of engineering design, supervision on the construction in terms of compliance with Conditions of Contract and technical specifications; supervision on the compliance with the Bank’s policies on procurement, financial management and safeguards; provision of trainings on Bank’s policies and low-class roads design, etc. The quality of the Bank’s supervision is rated Satisfactory. (c) Justification of Rating for Overall Bank Performance Rating: Satisfactory During project preparation, adequate activities were carried out by the Bank task team to ensure high quality of the project design and formulation. During implementation, the Bank team closely supervised and monitored the implementation progress, timely identified and helped to resolve the hindering problems, effectively ensured the compliance of Bank’s policies. The supports of the Bank task team were well recognized by the Borrower. The overall Bank’s performance is rated Satisfactory. 5.2 Borrower Performance (a) Government Performance Rating: Satisfactory Shaanxi Provincial Government had sufficient experience in managing foreign funded projects by international organizations. For the Project, the government provided adequate and timely supports, including reviewing and approving design documents, providing counterpart funds from its fiscal revenue, managing the designated account for the Bank loan, assisting in overseas study tours, and coordinating with the Bank and the central government. In Ankang, the municipal government paid great attention to the Project and was deeply involved in the project design and implementation of the LRIP component. However, the municipal government was unable to provide counterpart funds in a consistently timely manner. The overall performance of the government was satisfactory. (b) Implementing Agency or Agencies Performance 19 Rating: Satisfactory On behalf of the government, Shaanxi Provincial Communication Department (SPCD) took the overall responsibility for project implementation. The Foreign Fund Financed Project Office (the PMO) under the SPCD was designated to handle the day-to-day management of the Project. The PMO was headed by an experienced professional director who was supported by a group of technical staff experienced in engineering and construction management. A sub-PMO was established under the Ankang Municipal Communication Bureau to manage the LRIP implementation. Each project county also established a sub-PMO to implement the local roads in its territory. During implementation, the PMO worked intensively on project planning, implementation coordination, procurement and contracting, fund management, and monitoring activities. The PMO also acted as a focal point in coordination with the Bank, the provincial government, and the municipal and county PMOs. The PMO managed to strengthen its capacity to meet the project requirements, including recruiting technical staff, participating in trainings and study tours, and actively involving in all project management activities. With the assistance from the consultants, the PMO prepared and submitted all required reports. Contract management experienced no major issues during implementation. The financial account for the Project was audited by external auditors and the audit reports showed no serious financial problem. The PMO facilitated all Bank missions with adequate assistance. The overall implementing agencies’ performance was satisfactory. (c) Justification of Rating for Overall Borrower Performance Rating: Satisfactory Given the satisfactory ratings for Government performance and Implementing Agency performance, the overall performance of the Borrower was satisfactory. 6. Lessons Learnt Local roads development. The development of local roads will better transfer the benefits of the AME to further distance and to more people in the rural areas. On the other hand, the local road development will also generate more traffic to the AME. Institutional arrangement for project implementation. The AME was implemented by the PMO, and the LRIP was implemented by the municipal and county governments. The coordination and communication among these agencies was sometimes weak which caused some adverse impacts to the implementation of the LRIP component. For future projects of such kind, better institutional arrangement should be made by clearly defining the responsibility and authority of each level of agencies and strengthening the control power of the provincial level agency. 20 Counterpart fund for the LRIP. Ankang Municipal Government did not provide sufficient counterpart fund in a timely manner for the LRIP during all of the implementation period although it had committed to provide such funds at the appraisal. The progress of the LRIP experienced delays although the counterpart fund was fully provided by the project counties at late stage of the Project. For future projects, the project province should be responsible for ensuring that the lower level governments provide the counterpart funds, and take conclusive measures to urge the governments to fulfill the commitment. Access roads to construction site. During implementation, the main access roads for the AME construction (S310 and G210) were seriously damaged by the heavy trucks. It also caused inconvenience to the existing traffic and adverse environment impacts. Such problem should be avoided or mitigated in future projects by properly improving and maintaining the existing access roads and constructing temporary access roads before commencement of the main construction; and properly managing the traffic safety and strengthening environment protection measures. Training and study tours. The overseas training and study tours were delayed and not fully implemented because the government had tightened the restriction on the overseas travelling of government officials during project implementation. More domestic training and study tours were implemented instead. For future projects, the plan for overseas training should be made taking into account the government’s policy and regulations. Rural roads maintenance. Currently in China, the maintenance of rural roads maintenance is usually insufficient, in terms of budget and capacity. The governments are trying to increase the budget and improve the performance. In future projects, the Bank may design appropriate programs for improving the capacity of local roads maintenance, including enhancing human resource development, purchasing road inspection and maintenance equipment, developing management information system, and adopting advanced concepts and techniques. Transport services development. Road development can only make available of the infrastructure available for connectivity. Transport services can better use the infrastructure as to provide low cost services to local people, especially to low-income people. Future similar roads project should incorporate a public transport service component into the project formulation. 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners (a) Borrower/implementing agencies Upon completion of the Project, the executing agency and the implementation agency provided opinions and suggestions to the Bank on the Project (Annex 10). The comments from the Bank team on some key issues raised are listed below. � The EA/IA thought that the Project had not only brought substantial benefits to the socioeconomic development in the project area, but also brought updated 21 concepts on environment protection, resettlement, procurement and project management, which are far-reaching, positive and significant for promoting normalized management of highway project construction in Shaanxi Province. The Bank team agrees with this comment and will pay more attention to the knowledge dissemination and safeguard implementation in future Bank financed projects. � The EA/IA confirmed that it was very necessary that the institution strengthening component (ISC) was included under the Project. The implementation of the ISC component had resulted in the enhancement of the management capacities of the SPCD. The Bank team will strengthen the institutional strengthening and capacity buildings component in future projects, but will also ensure that such programs should be well designed and implemented to maximize their influence toon the success of project implementation and the long-term institutional development. � The EA/IA suggested that the using of international consultants should be formulated and implemented based on the project scope and the capability of the project implementation agency. It should be emphasizes particularly on those technical and managerial fields which the domestic consultants are not so familiar with, and avoid waste of resources by using the international consultants in the general fields or the fields in which the domestic experts have rich technical and managerial experience. The Bank team thinks that using international consultants is still necessary, as they are the major channel to bring advanced knowledge and techniques as well as for ensuring good quality of project implementation. However, the formulation of the consulting services should be enhanced and well discussed with the EA during project implementation. The TOR should be adequately prepared with clear working scope and expertise requirements. � The EA/IA also mentioned that the World Bank should pay more attention to the actual effect of the project management rather than the form of it. For instance, the frequency of regular project supervision mission from the World Bank should be changed from twice a year to once a year, except missions particularly for some special supervision such as the procurement supervision mission at the beginning of project implementation and the resettlement supervision. It is also suggested that the World Bank should not change the project task team manager (TTL) too frequently. The Bank team agrees that it is favorable to keep a TTL as long as possible. (b) Cofinanciers Not applicable. (c) Other partners and stakeholders Not applicable. 22 Annex 1. Project Development Objectives Target Value Actual Value Bas 2n Project elin 2nd 4th 5th d Outcome Unit e 1st Yea 3rd Yea 5th 1stY 3rd 4th Ye 6th Ye Indicators 200 Year r Year r Year ear Year Year ar Year ar 5 2007 200 2009 201 2011 2007 2009 2010 201 2012 20 8 0 1 08 1. Freight price of RMB/ 19 143 144 146 147 149 83 186 190 190 230 230 Ankang – ton 0 Wanyuan 1 2. Traveling time2 S310 Hengkou– 9. 5.4 6.7 7.4 8.3 9.2 5.3 9.5 10.5 5.0 3.0 3.0 Yudu 8 Town） G210 Hour 5. (Gucheng- 4.1 5.1 5.6 6.2 6.9 3.7 5.0 5.0 3.5 2.5 2.5 2 Wanyuan) Ankang- Maoba N/ N/A N/A N/A N/A N/A 1.1 N/A N/A N/A 1.0 1.0 Highway A (AME) 3. Accident rates S310 Hengkou– Total 40 48 53 64 36 38 26 58 (3) 38 (2) 44 (5) 32 (4) 36 (8) Yudu accide (2) （2） (3) (3) (3) (3) (9) Town） nts per year 15 G210 (fatal 186 71 154 205 226 249 149 147 1 145 (Gucheng- 150 (9) (13 95 (10) accide (26) （32） (35) (39) (43) (26) (21) (2 (10) Wanyuan) nts per ) 2) Ankang- year) Maoba N/ 84 N/A N/A N/A N/A N/A 35(13) N/A N/A N/A 126 (2) Highway A (2) (AME) Target Value Actual Value Bas 2n Intermediat elin 2nd 4th d 5th 1st e Outcome Unit e 1st Yea 3rd Yea 5th Y 3rd 4th Ye 6th Yea Indicators 200 Year r Year r Year ea Year Year ar Year r 5 2006 200 2008 200 2010 r 2009 2010 201 2012 2007 7 9 20 1 08 [A] AME COMPONENT Traffic volume S310 Hengkou– 138 170 195 28 330 Yudu 1590 1820 850 2800 2560 3230 2715 4 5 0 80 0 Town） G210 PCU/d 331 407 467 30 411 (Gucheng- 3850 4365 2050 2990 3100 3740 3463 ay 5 5 5 10 0 Wanyuan) AME N/ 149 (Ankang- N/A N/A N/A N/A N/A 6360 N/A N/A N/A 3048.5 A 2 Ziyang)3 AME N/ (Ziyang- N/A N/A N/A N/A N/A 5870 N/A N/A N/A 33 2156 A Maoba) [B] LRIP COMPONENT 23 Average No. of traffic vehicle volume s (for baselin N/ County&to e), 434 5% 5% 5% 5% 5% N/A 243 332 397 508 A wn Road4 Increas e% Village after N/ 87 3% 3% 3% 3% 3% N/A 105 128 141 207 Road4 rehabili A tation Average Minute travel time s (for baselin 50 50 N/ County&to e), 150 50% 50% 50% N/A 125 120 120 120 % % A wn Road Decrea se of (%) Village 50 50 N/ after 30 50% 50% 50% N/A 65 45 40 40 Road % % A comple tion Freight rate RMB/t on-km (for 30 30 N/ County&to baselin 0.8 30% 30% 30% N/A 0.8 0.8 1.2 1.2 % % A wn Road e), Decrea Village se % 40 40 N/ after 2.5 40% 40% 40% N/A 0.8 0.8 1.2 1.2 Road % % A rehabili tation Passenger Buses/ Service day (for N/ County&to baselin 30 5% 5% 5% 5% 5% N/A 63 80 92 106 A wn Road e), Increas e% +2 +2 +2 +2 +2 Village N/ after 0 vehicle vehi vehicle vehi vehicle N/A 18 30 37 32 Road/4 A rehabili s cles s cles s tation [C] ISP COMPONENT Percentage 13 25 50 115 180 of % 10% 15% 40% 60% 1 150% 173% 193% % % % % provincial % road network with up-to- 12 1133 147 date Km 15 131683 144110 154250 03 730 information 62 on its condition Imple Imple Method mented mented ology Impact (first (first and N/ Imple Imple N/ Imple analysis Status N/A survey survey N/A survey A mented mented A mented carried out / / sample analysi analysi defined s) s) No. of N/ Trained N/A 11 32 43 37 11 N/A 12 12 10 33 A Staff Training 70 70 and study Evaluat % % tour 70% 70% 70% ion of posi posi N/ 96 programs N/A positiv positiv positiv N/A 95% 95% 98% Activiti tive tive A % e rating e rating e rating es5 rati rati ng ng 24 Annex 2. Project Costs, Financing, and Loan Allocation (a) Project Cost by Component (USD thousand equivalent) Appraisal Estimates Actual % Bank % Bank Government World Bank Total Government World Bank Total Financing Financing Ankang�Maoba Expressway (AME) Civil works (subgrade and pavement) 255,880 255,880 511,760 50.0% 719,772 257,278 977,050 26.3% Building & annex areas, traffic safety & environmental protection 18,692 18,692 47,292 47,292 E&M and Equipment 19,309 19,309 55,417 55,417 Construction supervision (local team) and project management 10,084 10,084 15,227 15,227 Construction supervision (foreign team) 1,393 1,393 100.0% 1,676 1,676 100.0% 303,964 257,273 561,237 837,708 258,954 1,096,662 23.6% Local Road Improvement Program (LRIP) Civil works 5,977 40,000 45,977 87% 36,297 40,000 76,297 52.4% Supervision (local) 1,248 1,248 0% 1,297 1,297 7,225 40,000 47,225 37,594 40,000 77,594 51.6% Institutional Strengthening Program (ISP) Impact evaluation and monitoring 200 200 100% 67 46 113 40.8% Training and study tours 1,000 1,000 100% 194 355 549 64.6% Equipment for road condition data collection 653 653 1,306 50% 645 645 1,290 50.0% Technical assistance & training on use of auscultation equipment 125 125 100% - - 653 1,978 2,631 906 1,046 1,953 53.6% Land Acquisition and Resettlement (LA&R) 19,248 19,248 0% 33,465 33,465 Total Baseline Cost 331,090 299,250 630,340 47.5% 909,673 300,000 1,209,673 24.8% Contingencies Contingencies (physical) 68,281 68,281 0% Contingencies (price) 35,629 35,629 0% 103,910 103,910 Front end Fee 750 750 100% 822 822 Interest During Construction 6,807 6,807 750 750 7,629 7,629 Grand Total 435,000 300,000 735,000 917,302 300,000 1,217,302 24.6% AME = Ankang – Maoba Expressway, LRIP = local road improvement program, ISP = intuitional strengthening program Source: the World Bank project completion mission (b) Project Financing (USD thousand equivalent) At Appraisal At Completion Source Amount % Amount % World Bank 300,000 40.8% 300,000 24.6% Government 435,000 59.2% 917,302 75.4% Total 735,000 1,217,302 Source: the World Bank project implementation completion and result mission 25 (c) Allocation and Disbursement of the World Bank Loan (USD) Percentage Original Revised Increased / Category to be Disbursed Allocation Allocation Decreased financed (1) Civil Works: (a) under Part A of the Project 255,880,000 50% 257,277,981 1,397,981 257,277,981 (b) under Part B of the Project 40,000,000 87% 40,000,000 - 40,000,000 (2) Consultant's services 1,720,000 100% 1,721,888 1,888 1,721,888 (3) Training 1,000,000 100% 355,008 (644,992) 355,008 (4) Goods 650,000 50% 645,123 (4,877) 645,123 (5) Unallocated 750,000 (750,000) Total 300,000,000 300,000,000 0 300,000,000 Part A: Civil works for the Ankang – Maoba Expressway, Part B: Civil works for the local road improvement Source: the World Bank project implementation completion and result mission 26 Annex 3. Institutional Strengthening Programs (a) Oversea Training and Study Tours Implemented No. Subject Location Person Days Implemented in 1 Rural Road Maintenance Technology and Management System Brazil 6 10 April 2009 2 Design and Management of Expressway Service Areas France, UK 6 10 May 2009 3 Local Road Pavement Design and Implementation Technology South Africa, Kenya 6 10 April 2012 4 Mechanism of Road Maintenance Contracting Brazil, Chile 6 10 December 2012 5 Training on Environmental Protection of Road Project Canada 15 21 November 2012 Implementation 6 Road Operation Management System Brazil, Argentina 6 10 December 2012 Source: the Project Management Office (b) Domestic Training and Study Tours Implemented No. Subject Location Persons Days Implemented in 1 Rural Road Project Management Fujian Province 10 10 Oct. 9–18, 2011 2 Expressway Project Implementation and Ecology Environment Anhui Province 9 7 April 6–11, 2012 Protection 3 Road Project Planning and Design Hunan Province 10 8 May 5–14, 2012 4 Expressway Implementation Standardization and Management Xinjiang Autonomous 11 8 May 6–13, 2012 Region 5 Expressway Slop Protection and Tunnel Construction Sichuan Province 10 12 May 20–27, 2012 6 Drainage Technology of Expressways in Mountainous Areas Jiangxi Province 10 12 May 29–June 6, 2012 7 Rural Road Construction and Environment Protection Yunnan Province 10 10 June 2–11, 2012 8 Rural Road Maintenance Sichuan Province 10 10 November 5–15, 2012 9 Road Operation Management Jilin and Heilongjiang 10 12 June 8–20, 2012 Provinces Source: the Project Management Office 27 Annex 4. Summary of the Land Acquisition and Resettlement Project/item RP Actual Change Ankang-Maoba Total affected HH 7348 7253 -95 Total affected person 30212 29051 -1161 Permanent Land Acquisition (mu) 5579 5706 127 in which, farmland 2655 3036 381 Temporary Land Acquisition (mu) 2459 2459 Relocated Households (HH) 483 685 202 Relocated Persons ( person) 2262 2953 691 Affected House areas (m2) 93050 112061 19011 Affected enterprise (number) 11 11 Resettlement cost (100 million CNY) 1.41 1.88 0.47 Maoba-Shengjie (as linked project) 0 Total affected HH 19 19 0 Total affected person 77 77 0 Permanent Land Acquisition (mu) 11.8 11.8 0 in which, farmland 11.8 11.8 0 Temporary Land Acquisition (mu) 0 0 0 Relocated Households (HH) 3 3 0 Relocated Persons ( person) 12 12 0 Affected House areas (m2) 907 907 0 Affected enterprise (number) 0 0 0 Resettlement cost (100 million CNY) 0.64 0.64 0 Rural Road Component 0 Total affected HH 13 13 0 Total affected person 45 45 0 Permanent Land Acquisition (mu) 6.89 6.89 0 in which, farmland 4.29 4.29 0 Temporary Land Acquisition (mu) 0 0 0 Relocated Households (HH) 13 13 0 Relocated Persons ( person) 45 45 0 Affected House areas (m2) 1307 1307 0 Affected enterprise (number) 0 0 0 Resettlement cost (100 million CNY) 0.74 0.74 0 The Total 0 Total affected HH 7361 7266 -95 Total affected person 30257 29096 -1161 Permanent Land Acquisition (mu) 5585.89 5712.89 127 in which, farmland 2659.29 3040.29 381 Temporary Land Acquisition (mu) 0 2459 2459 Relocated Households (HH) 496 698 202 Relocated Persons ( person) 2307 2998 691 Affected House areas (m2) 94357 113368 19011 Affected enterprise (number) 0 11 11 Resettlement cost (100 million CNY) 2.15 2.62 0.47 RP = resettlement plan Source: the World Bank project team 28 Annex 5. Economic and Financial Analysis An economic and financial re-evaluation of the Project was conducted at ICR stage. A traffic analysis was carried out to find out the traffic status and development on the project roads. The traffic forecast for future years was revised accordingly. The economic re-evaluation assumed that the vehicles on the project roads could drive at faster speeds with lower operating costs and less travel time. Economic benefits were calculated by comparing the “with-project� and “without-project� cases. Consequently, the economic internal rate of return was calculated for the whole project, as well as for the AME and the local roads, separately. As the AME has provision of toll revenue, a financial internal rate of return was calculated for the AME. Traffic Analysis and Forecast The first section of the Ankang – Maobao Expressway (AME) was opened to traffic in December 2010 (Ankang–Songping section). The AME was fully opened to traffic on May 31, 2011. According to the statistics of the AME operator, 1 the annual average daily traffic (AADT) on the AME was 1,385 vehicles in 2011. On April 13, 2012, the connected expressway in Sichuan Province was opened to traffic. 2 By then, the whole expressway corridor from Xián to Chongqing was opened, which attracted larger amount of traffic to divert from the parallel local roads and other transport corridors. According to the statistics, the AME traffic in April 2012 jumped to AADT 2,343 vehicles, about 69% higher than the 2011 average. As a general practice in China, the traffic diversion from local roads and/or other transport corridors to a new expressway normally takes about 6 – 10 months and the provision of long distance bus service on the new expressway takes about one year. In considering the existing traffic, the socioeconomic development in the project corridor, and the functions of the AME, the growth rates for future traffic of the AME were adjusted by assuming that the traffic on the AME would increase by average 18%–19% in 2013–1015, 13%–14% in 2016–2020, and 5% in 2021 and onwards. 3 Table 5.1 Existing Traffic on the AME (AADT vehicle) Car/van Bus Small Medium Large Super Total Existing Taffic 2011 908 17 323 79 35 23 1,385 2012 1,531 46 472 131 57 106 2,343 increased by 69% 171% 46% 66% 63% 361% 69% Note: the traffic for 2012 is the existing traffic in April of 2012 Source: Anchuan Branch Company (ABC) of Shaanxi Jiaotong Group Corporation 1 Anchuan Branch Company (ABC) of Shaanxi Jiaotong Group Corporation 2 Expressway of Dazhou to Shaanxi border, 138.4 km, financed by the Asian Development Bank and Sichuan government 3 At appraisal, the traffic growth rates were estimated at 7.1% for 2005-2011, 5.2% for 2011- 2020, and 4.0% for 2020-2030. 29 Under the benefit monitoring and evaluation program, traffic surveys were conducted on selected sample local roads under the LRIP. The baseline survey was carried out in June 2009, and another two follow-up surveys were carried out in 2010 and 2012 respectively. The daily traffic counts on the same sample roads were collected. The survey results showed that the traffic in 2011 was increased by 14%–23% in comparing that in 2010 on the sample county/township roads and 5–13% on the sample village roads. According to the existing traffic counts and the traffic developing trend, the future traffic growth rates for the LRIP roads were adjusted at 15%–16% in 2013–2015, 10% in 2016–2020, and 5% in 2012 and onwards. 4 Table 5.2 Traffic Survey on the Sample LRIP Roads (AADT vehicle) Length Vehicles Growth Rates Sample Roads (km) 2009 2010 2011 2010/2009 2011/2010 County and Township Roads 1 Gunsan Road 15.58 30 36 41 20% 14% 2 Maowa Road 10.30 19 21 25 11% 19% 3 Songliu Road 31.27 101 149 184 48% 23% 4 Hongniu Road 31.73 93 126 147 35% 17% Average 22.22 61 83 99 37% 20% Village Roads 5 Shishufa Road 13.00 43 50 55 16% 10% 6 Yongqiang Road 8.10 26 32 36 23% 13% 7 Xianglu Road 7.50 24 26 29 8% 12% 8 Tangmogouzi Road 5.00 12 20 21 67% 5% Average 8.40 26 32 35 22% 10% Source: “Second Socioeconomic Monitoring and Evaluation Program and Report�, Shaanxi Provincial Academy of Social Science, May 20, 2012 Project Cost and Benefits The actual project cost was used in the economic re-evaluation, which was about 44.8% higher than that estimated at appraisal (in terms of RMB). The actual operation cost for the AME was collected from the operator, which is RMB 24,270,507 in 2011 and RMB 7,811,347 in the first four months of 2011. It was assumed that such operation cost would be increased by 3% each year along with the traffic increase. Actual routine maintenance costs were RMB 23,390,000 for the AME in 2011 and average RMB 5,000 per km per year for the local roads. The periodical maintenance costs were estimated at 10% and 30% of the capital costs for the AME and the local roads respectively. It was assumed that the periodical maintenance would be implemented in 5–7 years for the AME and 5–6 years for the local roads according to Chinese norms and the traffic levels. All of these costs were converted into economic costs using an average factor of 0.95. 4 At appraisal, the traffic growth rates for the LRIP roads were estimated at 3% from 2005-2010, reduced by 0.5% for each of 5 years from 2010-2030. 30 The main sources of the economic benefits were (i) savings in vehicle operation cost (VOC), (ii) savings in passenger travel time costs, and (iii) other non-quantified benefits. The VOC savings were calculated using the latest unit VOC data in the project area. For the AME, the VOC savings in RMB per vehicle-kilometer were estimated at 0.43 for car, 2.05 for bus, 0.58 for small truck, 1.24 for medium truck, 1.99 for large bus, and 3.83 for heavy truck respectively. For the local roads, the VOC savings in RMB per vehicle- kilometer were estimated at 0.15 for car/van, 0.60 for bus, 0.18 for small truck, 0.38 for medium truck, and 0.70 for large bus respectively. Average passenger vehicle speeds were assumed at 80–100 km/hour on the AME and 20–40 km/hour on the local roads for the “without-project� case. The passengers’ travel time cost savings were calculated by different types of passenger vehicles. The passenger time cost was derived from the GDP per capita of Shaanxi Province in 2010. Other factors taken into account in the calculation for passenger time cost savings include average vehicle loads, percentage of work-related trips, time costs by different road users, and travel speeds for different types of passenger vehicles. Due to data unavailability, 10% was added to the VOC and time cost savings to reflect other benefits such as socioeconomic development in the project area, poverty reduction, less accident loss, and road maintenance cost savings. Economic Re-evaluation Based on above assumptions and the estimations on economic costs and benefits, the economic internal rate of return (EIRR) was recalculated at 15.3% for the whole project (15.0% for the AME and 18.5% for the local roads), which is lower than that estimated at appraisal. 5The lower EIRRs were mainly due to higher project costs, and lower traffic forecast in early years operation. However, all of the recalculated EIRRs are above 15%. The project is considered economically viable for the whole project as well as for the AME and the LRIP components individually. The detailed EIRR calculations for the Project are in Tables 6.4–6.6. The EIRRs were subjected to sensitivity analysis to test different scenarios of costs and benefits. The sensitivity analysis results in Table 6.3 showed that the project continues to be economically viable for all tested scenarios. If a 20% operation and maintenance cost increase were to be combined with a 20% benefit reduction, the EIRR would be 13.0% for the whole project. The sensitivity analysis also showed that the EIRR is more sensitive to changes in benefits. Therefore, the AME operator and the local governments should keep the roads in good condition for attracting and facilitating more traffic. 5 At appraisal, the EIRRs were 15.8% for the AME and 46.5% for the LRIP. 31 Table 5.3 Sensitivity Test for the Whole Project (RMB million) Scenarios EIRR (%) ENPV Base Case 15.3% 4,606.9 Sensitivity Tests 1 Operation Cost 10% higher 15.3 51,307.4 2 Operation Cost 20% higher 15.2 51,227.6 3 Maintenance Cost 10% Higher 15.2 51,300.3 4 Maintenance Cost 20% Higher 15.2 51,213.5 5 Benefits 10% Lower 14.2 45,556.1 6 Benefits 20% Lower 13.1 39,725.2 7 Benefits 10% Higher 16.3 57,218.1 8 Benefits 20% Higher 17.2 63,049.0 9 O&M 10% Higher & Benefits 10% Lower 14.2 45,389.6 10 O&M Cost 20% Higher & Benefits 20% Lower 13.0 39,392.0 Note: EIRR = economic internal rate of return, ENPV = economic net present value, O&M = operation and maintenance Source: the World Bank project implementation completion and result mission 32 Table 5.4 Economic Re-evaluation of the Whole Project (RMB million) Costs Benefits Net Accumulate ENPV year Capital Oepration Maintenance Total VOC Time Cost Others Total Benefit of NPV 2005 8.6 8.6 -8.6 -18.9 -18.9 2006 38.6 38.6 -38.6 -76.2 -95.2 2007 225.3 225.3 -225.3 -397.1 -492.3 2008 1058.3 1,058.3 -1,058.3 -1,665.3 -2,157.6 2009 2899.7 2,899.7 -2,899.7 -4,073.8 -6,231.4 2010 2505.1 2,505.1 -2,505.1 -3,142.4 -9,373.8 2011 1106.2 23.1 23.5 1,152.8 145.2 109.8 25.5 280.5 -872.3 -976.9 -10,350.8 2012 24.4 28.8 31.1 84.3 276.0 188.1 46.4 510.6 426.3 426.3 -9,924.5 2013 0.0 29.7 35.0 64.6 338.9 236.2 57.5 632.6 567.9 507.1 -9,417.4 2014 0.0 30.6 35.7 66.3 418.1 297.0 71.5 786.6 720.3 574.2 -8,843.2 2015 0.0 31.5 36.5 68.0 518.1 374.3 89.2 981.6 913.6 650.3 -8,192.9 2016 0.0 32.4 37.3 69.7 611.6 448.5 106.0 1,166.1 1,096.4 696.8 -7,496.1 2017 141.6 33.4 38.1 213.1 725.9 538.0 126.4 1,390.4 1,177.2 668.0 -6,828.1 2018 739.4 34.4 39.0 812.8 866.2 646.4 151.3 1,663.9 851.1 431.2 -6,397.0 2019 0.0 35.4 39.8 75.3 1,039.1 777.8 181.7 1,998.6 1,923.3 870.0 -5,526.9 2020 0.0 36.5 40.7 77.2 1,253.2 937.2 219.0 2,409.5 2,332.3 942.0 -4,585.0 2021 0.0 37.6 41.6 79.2 1,317.7 1,060.4 237.8 2,615.9 2,536.7 914.8 -3,670.2 2022 141.6 38.7 42.5 222.8 1,385.6 1,199.9 258.5 2,844.0 2,621.2 844.0 -2,826.2 2023 0.0 39.9 43.4 83.3 1,457.0 1,357.9 281.5 3,096.3 3,013.0 866.2 -1,960.1 2024 739.4 41.1 44.4 824.9 1,532.0 1,536.9 306.9 3,375.8 2,550.9 654.8 -1,305.3 2025 0.0 42.3 45.4 87.7 1,610.9 1,739.8 335.1 3,685.8 3,598.1 824.6 -480.7 2026 0.0 43.6 46.4 90.0 1,694.0 1,969.7 366.4 4,030.1 3,940.1 806.2 325.5 2027 141.6 44.9 47.4 233.9 1,781.3 2,230.3 401.2 4,412.8 4,178.9 763.5 1,089.0 2028 0.0 46.2 48.5 94.7 1,873.2 2,525.7 439.9 4,838.7 4,744.0 773.9 1,862.8 2029 739.4 47.6 49.5 836.6 1,969.8 2,860.5 483.0 5,313.3 4,476.7 652.0 2,514.8 2030 0.0 49.1 50.6 99.7 2,071.4 3,240.1 531.2 5,842.7 5,743.0 746.8 3,261.7 2031 -5254.6 50.5 51.8 -5,152.3 2,178.3 3,670.6 584.9 6,433.7 11,586.1 1,345.2 4,606.9 Economic Net Present Value (ENPV): 4,606.9 Economic Internal Rate of Return (EIRR): 15.3% Discount Rate: 12% Source: the World Bank project implementation completion and result mission 33 Table 5.5 Economic Re-evaluation of the AME (RMB million) Costs Benefits Net Accumulate ENPV year Capital Oepration Maintenance Total VOC Time Cost Others Total Benefit of NPV 2005 8.6 8.6 -8.6 -18.9 -18.9 2006 38.6 38.6 -38.6 -76.2 -95.2 2007 153.3 153.3 -153.3 -270.2 -365.3 2008 877.7 877.7 -877.7 -1,381.0 -1,746.4 2009 2891.0 2,891.0 -2,891.0 -4,061.6 -5,808.0 2010 2466.7 2,466.7 -2,466.7 -3,094.3 -8,902.3 2011 940.3 23.1 22.2 985.5 135.2 77.0 21.2 233.4 -752.1 -842.3 -9,744.6 2012 18.1 28.8 27.8 74.7 264.5 148.1 41.3 453.8 379.1 379.1 -9,365.5 2013 29.7 28.3 58.0 325.6 187.3 51.3 564.2 506.1 451.9 -8,913.6 2014 30.6 28.9 59.5 402.6 237.3 64.0 703.9 644.5 513.8 -8,399.8 2015 31.5 29.5 61.0 500.1 301.4 80.1 881.6 820.7 584.1 -7,815.7 2016 32.4 30.1 62.5 591.9 364.3 95.6 1,051.8 989.3 628.7 -7,187.0 2017 33.4 30.7 64.1 704.3 440.8 114.5 1,259.6 1,195.5 678.3 -6,508.6 2018 739.4 34.4 31.3 805.1 842.4 534.1 137.6 1,514.1 709.0 359.2 -6,149.4 2019 35.4 31.9 67.4 1,013.0 648.0 166.1 1,827.1 1,759.8 796.0 -5,353.4 2020 36.5 32.5 69.1 1,224.5 787.4 201.2 2,213.1 2,144.0 865.9 -4,487.4 2021 37.6 33.2 70.8 1,287.6 895.2 218.3 2,401.1 2,330.3 840.3 -3,647.1 2022 38.7 33.9 72.6 1,354.0 1,017.7 237.2 2,608.9 2,536.3 816.6 -2,830.5 2023 39.9 34.5 74.4 1,423.7 1,157.1 258.1 2,838.9 2,764.5 794.7 -2,035.8 2024 739.4 41.1 35.2 815.7 1,497.1 1,315.5 281.3 3,094.0 2,278.2 584.8 -1,451.0 2025 42.3 35.9 78.3 1,574.4 1,495.7 307.0 3,377.1 3,298.8 756.0 -695.0 2026 43.6 36.6 80.2 1,655.6 1,700.6 335.6 3,691.8 3,611.6 739.0 44.0 2027 44.9 37.4 82.3 1,741.0 1,933.6 367.5 4,042.1 3,959.8 723.4 767.4 2028 46.2 38.1 84.4 1,830.8 2,198.6 402.9 4,432.4 4,348.0 709.3 1,476.7 2029 739.4 47.6 38.9 825.9 1,925.3 2,499.9 442.5 4,867.8 4,041.8 588.7 2,065.3 2030 49.1 39.7 88.7 2,024.8 2,842.6 486.7 5,354.1 5,265.3 684.7 2,750.0 2031 -4,806.2 50.5 40.5 -4,715.2 2,129.3 3,232.2 536.2 5,897.7 10,613.0 1,232.2 3,982.3 Economic Net Present Value (ENPV): 3,982.3 Economic Internal Rate of Return (EIRR): 15.0% Discount Rate: 12% Source: the World Bank project implementation completion and result mission 34 Table 5.6 Economic Re-evaluation of the LRIP (RMB million) Costs Benefits Net Accumulate ENPV year Capital Oepration Maintenance Total VOC Time Cost Others Total Benefit of NPV 2005 0.0 - - - - 2006 0.0 - - - - 2007 72.0 72.0 -72.0 -127.0 -127.0 2008 180.7 180.7 -180.7 -284.3 -411.2 2009 8.7 8.7 -8.7 -12.2 -423.4 2010 38.4 38.4 -38.4 -48.1 -471.5 2011 165.9 0.0 1.3 167.3 10.0 32.8 4.3 47.1 -120.2 -134.6 -606.1 2012 6.3 0.0 3.3 9.6 11.6 40.1 5.2 56.8 47.2 47.2 -559.0 2013 0.0 6.6 6.6 13.3 48.9 6.2 68.4 61.8 55.2 -503.8 2014 0.0 6.8 6.8 15.4 59.7 7.5 82.7 75.8 60.4 -443.4 2015 0.0 7.0 7.0 18.0 72.9 9.1 100.0 92.9 66.1 -377.2 2016 0.0 7.2 7.2 19.7 84.2 10.4 114.3 107.1 68.1 -309.2 2017 141.6 0.0 7.5 149.1 21.7 97.3 11.9 130.8 -18.2 -10.3 -319.5 2018 0.0 7.7 7.7 23.8 112.3 13.6 149.7 142.1 72.0 -247.5 2019 0.0 7.9 7.9 26.2 129.7 15.6 171.5 163.6 74.0 -173.6 2020 0.0 8.2 8.2 28.7 149.8 17.9 196.4 188.3 76.0 -97.5 2021 0.0 8.4 8.4 30.1 165.2 19.5 214.9 206.5 74.5 -23.0 2022 141.6 0.0 8.7 150.2 31.6 182.1 21.4 235.2 84.9 27.3 4.3 2023 0.0 8.9 8.9 33.2 200.8 23.4 257.4 248.5 71.4 75.7 2024 0.0 9.2 9.2 34.9 221.4 25.6 281.9 272.7 70.0 145.7 2025 0.0 9.5 9.5 36.6 244.1 28.1 308.7 299.3 68.6 214.3 2026 0.0 9.7 9.7 38.4 269.1 30.8 338.3 328.5 67.2 281.5 2027 141.6 0.0 10.0 151.6 40.3 296.7 33.7 370.7 219.1 40.0 321.6 2028 0.0 0.0 10.3 10.3 42.3 327.1 36.9 406.4 396.0 64.6 386.2 2029 0.0 0.0 10.6 10.6 44.4 360.6 40.5 445.5 434.9 63.3 449.5 2030 0.0 11.0 11.0 46.6 397.6 44.4 488.6 477.7 62.1 511.6 2031 -448.4 0.0 11.3 -437.1 48.9 438.3 48.7 536.0 973.1 113.0 624.6 Economic Net Present Value (ENPV): 624.6 Economic Internal Rate of Return (EIRR): 18.5% Discount Rate: 12% Source: the World Bank project implementation completion and result mission 35 Financial Re-evaluation The AME has provision of toll revenue. On December 26, 2010, the provincial government approved a tariff for the toll collection to the vehicle using the AME. Before the opening of the connected expressway in Sichuan, the base toll level was RMB 0.60per km for small passenger vehicles. After the opening of the Sichuan expressway, the base toll level of RMB 0.70 per km for small passenger vehicles has been applied. The toll to the freight vehicles is collected on weight basis. The toll collection of the AME started on December 26, 2010 and for 20 years. The toll revenue was RMB39.08 million in 2011 and RMB22.17 million in the first four months of 2012. In the financial evaluation, it was also assumed that (i) the toll revenue would be increased as the traffic increasing; (ii) the non-toll revenue would be about 2% and 5% of the toll revenue before and after 2021; 1and (iii) business tax rate of 3.3% of the revenue and corporative income tax rate of 25%. 2 According to above assumptions and estimations, the financial internal rate of return (FIRR) was calculated at 4.2% before tax and 2.3% after tax. If not considering the tax, the FIRR was 4.4%. At appraisal, no such FIRR calculation was provided, so that no comparison is given in the report. Table 6.7 is the cash flows and FIRR calculation. 1 The AME also generate non-toll revenue mainly from service area operation/leasing, advertisement along the expressway, renting out of the expressway facility, etc. 2 Currently, no any tax collected from the AME operation. All toll revenue goes to the provincial fiscal revenue and fund for operation and maintenance is allocated from the provincial government fiscal expenditure. 36 Table 5.7 Financial Evaluation of the AME (RMB million) Costs Benefits Business Cash Flow Corporate Cash Flow year Capital Oepration Maintenance Total Toll Others Total Tax Before Tax Tax After Tax 2005 9.0 9.0 -9.0 0.0 -9.0 2006 40.7 40.7 -40.7 0.0 -40.7 2007 161.4 161.4 -161.4 0.0 -161.4 2008 923.9 923.9 -923.9 0.0 -923.9 2009 3043.2 3,043.2 -3043.2 0.0 -3043.2 2010 2596.6 2,596.6 -2596.6 0.0 -2596.6 2011 989.7 24.3 23.4 1,037.4 39.1 39.9 78.9 2.6 -961.1 0.0 -961.1 2012 19.0 30.3 29.2 78.6 110.9 113.1 223.9 7.4 138.0 34.5 103.5 2013 31.2 29.8 61.1 131.0 133.6 264.5 8.7 194.7 48.7 146.1 2014 32.2 30.4 62.6 155.0 158.1 313.1 10.3 240.2 60.1 180.2 2015 33.2 31.0 64.2 183.9 187.6 371.5 12.3 295.1 73.8 221.3 2016 34.1 31.6 65.8 207.1 211.2 418.2 13.8 338.7 84.7 254.0 2017 35.2 32.3 67.5 233.7 238.4 472.1 15.6 389.1 97.3 291.8 2018 778.3 36.2 32.9 847.5 264.5 269.8 534.4 17.6 -330.8 0.0 -330.8 2019 37.3 33.6 70.9 300.3 306.4 606.7 20.0 515.8 128.9 386.8 2020 38.4 34.3 72.7 342.2 349.0 691.2 22.8 595.7 148.9 446.8 2021 39.6 34.9 74.5 360.0 378.0 738.0 24.4 639.1 159.8 479.4 2022 40.8 35.6 76.4 378.8 397.7 776.5 25.6 674.5 168.6 505.9 2023 42.0 36.4 78.3 398.6 418.5 817.1 27.0 711.8 177.9 533.8 2024 778.3 43.3 37.1 858.7 419.4 440.3 859.7 28.4 -27.3 0.0 -27.3 2025 44.6 37.8 82.4 441.3 463.3 904.6 29.9 792.4 198.1 594.3 2026 45.9 38.6 84.5 464.3 487.6 951.9 31.4 836.0 209.0 627.0 2027 47.3 39.3 86.6 488.6 513.0 1,001.6 33.1 882.0 220.5 661.5 2028 48.7 40.1 88.8 514.1 539.9 1,054.0 34.8 930.4 232.6 697.8 2029 778.3 50.1 40.9 869.4 541.0 568.1 1,109.1 36.6 203.1 50.8 152.3 2030 51.6 41.8 93.4 569.3 597.8 1,167.1 38.5 1035.2 258.8 776.4 2031 -5,059.2 53.2 42.6 -4,963.4 599.1 629.1 1,228.2 40.5 6151.1 1537.8 4613.3 FIRR (before tax) 4.2% (after tax) 2.3% AME = Ankang – Maoba Expressway, FIRR = financial internal rate of return Source: the World Bank project implementation completion and result mission 37 Annex 6. Status of Loan Covenants Loan/Project Description of Covenant Date Due Status Date Complied Agreement Reference Schedule to PA, The SPCD shall maintain the project management office with a qualified and June 30, 2007 C 11-Jun-2007 Section I, experienced manager and staffing in adequate numbers and with qualifications and Paragraph 1 experience satisfactory to the Bank Schedule to PA, In carrying out of Part B of the project, the SPCD shall take such action as shall be Dec. 31, 2011 CD 31-Aug-2008 Section I, necessary to cause Ankang City to comply with its obligations under the Paragraph 2 Implementation Agreement. Schedule to PA, The SPCD shall prepare and furnish to the Bank the Maoba-Bashan Expressway RAP Sep. 30, 2007 C 30-Mar-2007 Section I, and EIA, satisfactory to the Bank. Paragraph 5 Schedule to PA, The SPCD shall cause to be implemented in the construction of the Maoba-Bashan Aug. 31, 2008 C 31-Aug-2008 Section I, Expressway (MBE), the MBE RAP and environmental mitigation measures, all in a Paragraph 5 manner satisfactory to the Bank. Schedule to PA, In carrying out Part C, the SPCD shall on November 15 of each year furnish to the Nov. 15 each CD 15-Nov-2011 Section I, Bank an annual training program for the forthcoming calendar year and thereafter year Paragraph 9(a) implement each such training program. Schedule to PA, The SPCD shall furnish to the Bank for its approval the terms of reference for Sep. 30, 2007 CD 12-May-2008 Section I, carrying out the studies under Part C. Paragraph 9(b) Schedule to PA, The SPCD shall furnish to the Bank for its review, on December1 of each year, its Dec. 1 each year C 16-March-2012 Section II, proposed road maintenance budget for the following year (January to December). Paragraph 2(a) Schedule to PA, The SPCD shall furnish to the Bank on March 31 of each year, a report on the Mar 1, each year C 16-March-2012 Section II, implementation of its road maintenance budget during the prior year. Paragraph 2(b) LA-Schedule 2 The Borrower shall monitor and evaluate the progress of the Jan.-Jun.2008 Aug. 31, 2008 CD Nov. 19, 2008 Section II - A.1 Project and prepare Project Reports in accordance with the provisions of Section 5.08 of the General Conditions and on the Jul.- Feb. 28, 2009 CD May 15, 2008 basis of the indicators set forth in Annex 1 to this schedule. Each Dec.2008 38 Project Report shall cover the period of one (1) calendar semester, Jan.- Aug. 31, 2009 CD Oct. 17, 2009 and shall be furnished to the Bank not later than two (2) months Jun.2009 after the end of the period covered by such report. Each such Jul.- Feb. 28, 2010 CD Dec. 14, 2010 Project Report shall include also information on the progress of Dec.2009 the Maoba-Bashan Expressway, in particular relating to the Jan.- Aug. 31, 2010 CD Dec. 14, 2010 implementation of its RAP and the mitigating measures under its Jun.2010 EIA. Jul.- Feb. 28, 2011 CD Jul. 28, 2011 Dec.2010 Jan.- Aug. 31, 2011 CD Sep. 16, 2011 Jun.2011 Jul-Dec.2011 Feb. 28, 2012 CD 23-Apr-2012 Jan.- Aug. 31, 2012 CD 15-Oct-2012 Jun.2012 Jul-Dec Feb.28,2013 CD 7-Apr-2013 2012 LA-Schedule 2 The Borrower shall have its Financial Statements audited in 2008 Jun 30, 2009 C 30-Jun-2009 Section II - B.2 accordance with the provisions of Section 5.09(b) of the General Conditions. Each audit of the Financial Statements shall cover the 2009 Jun 30, 2010 C 30-Jun-2010 period of one (1) fiscal year of the Borrower. The audited Financial Statements for each such period shall be furnished to the Bank not later than six (6) months after the end of such period. 2010 Jun 30, 2011 C 30-Jun-2011 2011 Jun 30, 2012 C 27-Jun-2012 2012 Jun 30, 2013 NYD NYD C=Complied with, CP=Partially complied with, NYD=Not yet due, OG=On-going, CD=Complied with after delay, NC=Not complied with Source: the World Bank project implementation completion and result mission 39 Annex 7. Bank Lending and Implementation Support/Supervision Processes (a) Task Team members Responsibility/ Names Title Unit Specialty Lending Aurelio Menendez Lead Transport Specialist/TTL EASTE Carlos Ricardo Escudero Lead Counsel LEGLA Yi Geng Financial Management Specialist EAPFM Maria Luisa G. Juico Program Assistant EASTE Yasuhiro Kawabata Senior Transport Specialist EASTE Arun Kumar Consultant EASTE Naoya Tsukamoto Senior Environmental Specialist EASEN Peishen Wang Environment Specialist EASTE Jing Xu Team Assistant EACCF Hongkun Yang Procurement Specialist EASTE Han-Kang Yen Economic Analyst EASTE Chaohua Zhang Senior Social Development Specialist EASSO Wenlai Zhang Highway Engineer EASTE YoulanZou Social Development Specialist EASTE Supervision/ICR Yi Geng Senior Financial Management Specialist EAPFM Petrus Benjamin Gericke Lead Transport Specialist/TTL ECSS5 Jianjun Guo Special Procurement Specialist EAPPR Maria Luisa G. Juico Program Assistant EASIN Yasuhiro Kawabata Consultant EXTTK Mark R. Lundell Sector Manager EASCS Teresita Ortega Program Assistant EASIN Juan D. Quintero Consultant SASDE 40 Peishen Wang Consultant EASIN Ning Yang Environment Specialist EASCS Songling Yao Senior Social Development Specialist EASCS XiaokeZhai Senior Transport Specialist/TTL EASCS Qi Zhu Consultant EAPFM Yu Shang Team Assistant EASCS (b) Staff Time and Cost Staff Time and Cost (Bank Budget Only) Stage of Project Cycle USD Thousands (including travel and No. of staff weeks consultant costs) Lending FY05 17.65 125552.40 FY06 38.83 210913.67 FY07 13.14 69985.07 FY08 0.00 0.00 Total: 69.62 406451.14 Supervision/ICR FY08 18.61 98100.60 FY09 10.06 70190.99 FY10 9.42 62558.84 FY11 8.11 45488.47 FY12 6.78 34255.66 FY13 5.69 29472.07 Total: 58.67 340066.60 41 (c) Bank Missions No Mission Dates Mission Leader 1 Reconnaissance Mission February 26-27, 2005 Aurelio Menendez 2 Identification Mission Mar. 30 - Apr.6, 2005 Aurelio Menendez 3 Preparation Mission September 19-25, 2005 Aurelio Menendez 4 Pre-appraisal Mission January 17-26, 2006 Aurelio Menendez 5 Appraisal Mission June 19-24, 2006 Aurelio Menendez 6 Pre-Implementation Mission October 22-24, 2007 Zhang Wenlai 7 Supervision Mission April 6-12, 2008 Aurelio Menendez 8 Supervision Mission October 19-25, 2008 Ben Gericke 9 Supervision Mission March 11-18,2009 Ben Gericke 10 Supervision Mission October 19-25, 2009 Ben Gericke 11 Supervision Mission June28 - July 05,2010 Ben Gericke 12 Supervision Mission November 22-26, 2010 Zhang Wenlai 13 Supervision Mission May 30 – June 3, 2011 Zhang Wenlai 14 Supervision Mission Nov14-18, 2011 Zhang Wenlai 15 Supervision Mission May 21-25, 2012 Zhang Wenlai 16 Supervision Mission September 25-28, 2012 Zhang Wenlai 1. Mr. Aurelio Menendez had been the task team leader from inception until being replaced by Mr. Ben Gericke on September 3, 2008. 2. 2. Mr. Zhang Wenlai took over the task leadership on October 14, 2010. 42 Annex 8. Beneficiary Survey Results As a sub-component of the ISP, a program on impact monitoring and evaluation study was designed and implemented to measure the socioeconomic impacts of the local roads under the LRIP. The study included the definition of the impact evaluation methodology and sample up to three surveys over the project implementation period towards providing a comprehensive assessment of the impacts on the livelihood of the people in the influenced areas. A local consulting entity was recruited to implement the survey and evaluation tasks designed. 1 The baseline survey was carried out in June 2009, and other two follow-up survey and evaluations were carried out in 2010 and 2012 respectively. In the surveys, 12 local roads (6 project roads and 6 comparing roads) were selected as the sample roads and 24 households (12 households along the project roads and 12 households away from the project roads as a comparing group) were selected. General information of the households were collected, including family size, income, expenditure, production, property, traveling, etc. In addition, a set of questionnaires was designed and used to collect the information of other stakeholders in the project areas, including transporter, store operators, small enterprise owners, teachers and students, medical doctors, and township and village administrators. The questionnaires cover many aspects of the transport and travel information, including distance, traveling means, cost, frequency, etc. During implementation, three surveys were conducted to the same survey groups. Assessments were carried out to compare between the sample group and comparing group. The changes over three surveys were analyzed. As suggested by the Bank review, more transport related information was added in the survey, like vehicle possession, local transport service, and transport related employment. The general conclusion of the surveys and assessments of the project impacts are summarized as follows: Regional Economic Development The local roads under the LRIP are located in Hanbin District, Langao County and Ziyang County. As other districts/counties in the Shaanxi Province, the project district/counties also experienced robust socioeconomic development. The surveys showed that the Gross Domestic Products (GDP) of the respondent towns/townships were increased by 11.2%-17.2% per annum in 2008-2010. The rural net income increased in a faster pace, about 18.3%�36.2% per annum. Part of the socioeconomic development in the project area was contributed by the improvement of transport infrastructure, including the AME and the local roads under the Project. Table 9.1 is the survey results of the sample towns/townships in the project area. 1 Shaanxi Provincial Academy of Social Science (SPASS) 43 Table 8.1 Economic Development and Income Increase in the Project Area GDP Rural Net Income County/Town (RMB million) (RMB per capita) 2008 2010 % per year 2008 2010 % per year Hanbin District Datong Town 258.07 348.49 16.2% 31.08 46.53 22.4% Wuli Tow 808.36 1,110.16 17.2% 31.40 58.24 36.2% Fenggao County Minzhu Town 191.92 254.98 15.3% 28.79 41.11 19.5% Zhanghe Township 37.17 45.96 11.2% 27.93 39.09 18.3% Ziyang County Donghe Town 55.56 73.88 15.3% 30.20 43.92 20.6% Chengguan Town 380.00 518.77 16.8% 30.08 46.18 23.9% Source: “Second Socioeconomic Monitoring and Evaluation Program and Report�, Shaanxi Provincial Academy of Social Science, May 20, 2012 Rural Household Income The Project is located in a mountainous area with very difficult geographic and geologic conditions. The improvement of the transport infrastructure has efficiently facilitated the agriculture development in the project area, which allows the agriculture products being transported out at a lower cost, less traveling time, and reduced damage. The survey showed that the total agriculture product value was increased by 12.0%�13.7% per annum of the respondents. In the meantime, the household income had a significant increase. The rural net income per capita was increased by 15.5%�24.6% per annum. However, the project area is still relatively poor in comparing with the provincial average. Table 9.2 is the survey results of the agriculture development and income increase of the respondents. Table 8.2 Agriculture Development and Income Increase of the respondents Agriculture Product Value Rural Net Income Sample Villlage (RMB yuan) (RMB per capita) 2008 2010 % per year 2008 2010 % per year Hanbin District Yongqing Village 2,000,000 2,530,000 12.5% 2,400 3,200 15.5% Baowei Village 2,400,000 3,010,000 12.0% 1,145 1,779 24.6% Fenggao County Fengshu Village 700,000 890,000 12.8% 2,300 3,321 20.2% Desheng Village 500,000 629,000 12.2% 2,170 3,177 21.0% Ziyang County Majiazhuang Village 11,500,000 14,870,000 13.7% 2,714 4,043 22.1% Xianglu Village 6,000,000 7,575,000 12.4% 2,601 3,824 21.3% Source: “Second Socioeconomic Monitoring and Evaluation Program and Report�, Shaanxi Provincial Academy of Social Science, May 20, 2012 44 Connectivity Improvement According to the survey, villagers in the project area now prefer to travel more often and to further distance to access product markets, working opportunities, and social services due to road infrastructure improvement. In comparing with that in 2008, the average frequency of traveling to county seats was more than double in 2010. The traveling time per trip was also substantially reduced by about 20%�50%. However, the traveling cost was not reduced as anticipated due to fuel and labor price inflation. For facilitating the more frequent traveling, many villagers have purchased their own transport vehicles. The number of vehicles owned by the sample villagers was about double in 2010 in comparing that in 2008. Table 9.3 is the survey results on traveling to county seats of the of the respondents. Table 8.3 Vehicle and Traveling of Respondent Households Vehicles and Machine Frequency to County Seat Time Spent and Cost County/Village Household Head (unit) (times per year) (monist/yuan) 2008 2009 2010 2008 2009 2010 2008 2009 2010 Hanbin District Yongqing Village Li Zhixing 1 1 2 1 5 10 70/12 30/10 30/12 Wang Zhiwan - - 1 1 4 10 70/12 30/10 30/12 Baowei Village Zheng Jirong 1 1 1 1 4 5 90/15 40/12 40/15 Zhang Bo 2 3 3 183 220 300 90/15 40/12 40/15 Fenggao County Fengshu Village Cheng Jianfu 1 1 1 6 15 30 40/10 30/10 30/12 Shong Ronggang 1 2 2 24 40 50 40/10 30/10 30/12 Desheng Village Xiong Yutian 1 1 2 3 5 10 90/20 50/12 40/15 Xiong Shuzhong 1 1 2 5 10 30 90/20 501/2 40/15 Ziyang County Majiazhuang Village Yang Chunxiu - - 1 4 10 20 30/10 20/10 30/12 Hu Qianming - - 1 6 10 15 30/10 20/10 30/12 Xianglu Village Gong Gaoquan 1 1 2 12 18 25 60/12 40/12 40/15 Gong Tao 1 1 1 10 15 20 60/12 40/12 40/15 Source: “Second Socioeconomic Monitoring and Evaluation Program and Report�, Shaanxi Provincial Academy of Social Science, May 20, 2012 Business Development Along with the socioeconomic development, many private businesses were established in the rural area, including stores, restaurants, hotels, etc. These businessmen/women now travel more often to purchase commodities from bigger towns and markets. According to the survey results, the frequency of traveling to bigger towns/markets by the store owners was increased by about 50% in 2010 in comparing with that in 2008. For the same traveling distance, the travel time was reduced by about half due to better connectivity and road conditions. The revenues of these stores increased substantially, about average 200%�500% increase during 2008�2010. The average annual transport cost for these business increased about 100%. But, the transport cost in comparing with the total revenue decreased from 6.7% in 2008 to 5.1% in 2010. 45 Table 8.4 Store and Business Development in the Project Area Trips Travel Distance Time Spent Transport Cost Annual Revenue Store Owner (times/year) (km) (minute/trip) (yuan/year) (yuan/year) 2008 2010 2008 2010 2008 2010 2008 2010 2008 2010 Zhang Shijia 52 70 26 26 40 25 520 1000 2400 7000 Li Yuanchang 6 20 30 30 120 40 60 180 400 3000 Zheng Qingbin 90 120 40 40 60 30 1000 2000 20000 40000 Liu Derong 24 60 60 60 100 60 480 1500 18000 40000 Zhang Erjun 52 60 61 61 240 80 1000 1500 12000 35000 Cheng Jianfu 20 40 60 60 100 70 800 1200 5000 20000 Source: “Second Socioeconomic Monitoring and Evaluation Program and Report�, Shaanxi Provincial Academy of Social Science, May 20, 2012 46 Annex 9. Summary of Borrower's ICR and/or Comments on Draft ICR The World Bank financed Shaanxi Ankang Road Development Project (the Project) was successfully implemented. The lessons learnt and experiences gained are summarized below: 1. The project management concepts brought by the World Bank project are important equally with the loan proceeds from the World Bank. The project has not only brought substantial benefits to the socioeconomic development in the project area, but also brought updated concepts on environment protection, resettlement, procurement and project management, which are far-reaching, positive and significant for promoting normalized management of highway project construction in Shaanxi Province. 2. The objectives anticipated by the World Bank for the Project are fully in compliance with that planned by the central government. The targets and scope of the Project is also fully in compliance with that of the 11thFive-Year Plan by the Ministry of Transport (MOT) and Shaanxi Province, including the targets for the expressway development, local roads construction and the institutional strengthening of the Shaanxi Provincial Transport Department (SPTD). 2 3. It is very necessary that the institution strengthening component (ISC) was included under the Project. The implementation of the ISC component has well resulted in the enhancement of the management capacities of the SPTD, mainly including： (a) Timely understanding the advanced technologies and updated management concept and method from other provinces or developed countries through domestic and oversea trainings; (b) The trainings specialized in project procurement, environmental protection, fund disbursement, etc. has effectively strengthened the project implementation and management capabilities of project-related personnel. (c) The ideas exchange and the discussion between World Bank's officers and project management personnel during implementation was also crucial for the capability strengthening of project implementation-related personnel. 4. Favorable qualities and professional expertise of the World Bank officers was not only one of key factors for the success of the project implementation, but also an important element to determine whether the project could be implemented in a manner of high efficiency and high quality. 5. Adequate survey and design, and rigid quality control were very importance for the successful implementation of the Project. The design program, construction technology and quality control measurements guaranteed overall quality of the construction of the Ankang–Maoba Expressway (AME) expressway, which was 2 Shaanxi Provincial Transport Department (SPTD) was named Shaanxi Provincial Communication Department (SPCD). 47 under special topographical and geological conditions, such as subgrade side slop reinforcement, tunnel lining and supporting, reinforcement of pile foundation of the bridge at bank slope and the construction of pile foundation of the bridge at reservoir basin. Several extraordinary storms with maximum daily rainfall of over 200mm didn't damage it and sound stabilization of subgrade appears to be reliable for safe operation of the expressway. 6. The unavailability of counterpart funds in due time for the local roads improvement component resulted in the incompletion of the actual construction progress timely and the loan account closing date had to be extended by six months. 7. Restricted policy and regulation on the overseas training by the central and provincial government shad some influence on the fully completion of some training programs, which was also a reason for the extension of the loan closing date. 8. The using of international consultants should be formulated and implemented based on the project scope and the capability of the project implementation agency. It should emphasizes particularly on those technical and managerial fields which the domestic consultants are not so familiar, and avoid waste of resource by using the international consultant in the general fields or the fields in which the domestic experts have rich technical and managerial experience ( such as in the field of construction supervision ). 9. It is a suggestion that the World Bank would pay more attention to the actual effect of the project management rather than the form of it. For instance, the frequency of regular project supervision mission from the World Bank would be changed from twice a year into once a year, except the mission particularly for some special supervision like the procurement supervision mission at the beginning of project implementation and the resettlement supervision. It is suggested the World Bank to provide standard formats of monthly report, semi-annual report with focus point on key content so as to simplify the report and thus strengthen report quality. 10. We would also suggest the World Bank not to change the project task team manager (TTL) too frequently. 48 Annex 10. Comments of Cofinanciers and Other Partners/Stakeholders Not applicable 49 Annex 11. List of Supporting Documents 1. The PDO Monitoring Report on Shaanxi Ankang Highway Development Project (2006, 2007, 2008, 2009, 2010, 2011), the Project Management Office 2. Final Report on the Land Acquisition and Resettlement for the Shaanxi Ankang Road Development Project, Shaanxi Provincial Academy of Social Science, March 30, 2012 3. Socioeconomic Impact Monitoring and Evaluation Report of the LRIP for the Shaanxi Ankang Road Development Project (baseline, first and second activities), Shaanxi Kexin Consulting Company 50 IBRD 34725 CHINA Hanjiayuan SHAANXI ANKANG ROAD DEVELOPMENT PROJECT Gulian Hei lon R U S S I A N F E D E R A T I O N gJ CHINA’S NATIONAL EXPRESSWAY SYSTEM ian g Heibaoshan Jagdagi Aihun Yitulihe Wuyiling K A Z A K H S T A N Nenjiang Manzhouli Tonjiang Yakeshi Hegang Beian Qianjin Hailaer Boketu HEILONGJIANG Dongfanghong Qiqihar Suihua Nancha Jiamusi Altay Fuyun Ranghulu HARBIN Jixi 44 ° Ulanhot UZBEKISTAN Yumin Daan Suifenhe Karamay M O N G O L I A Huolinhe Mudanjiang Sailimu Baicheng Baiyinhushuo Huoerguosi Wusu CHANGCHUN Jilin Hunchun Kuitun J I L I N KYRGYZ NEI MONGOL Tongliao Hefong URUMQI Dahuangshan Baishan Baihe REPUBLIC Siping Baluntai Erlianhaote Xilinhot LIAO NIN N IN G 40° Aksu Kuqa Turpan Fushun Turugart Hami Yuanbaoshan SHENYANG TA J IK Kashi Korla Benxi DEM. Sea of IS Turkeshitan Anshan TA Bachu Jinzhou Japan N Bayun Obo Baiyinchagan PEOPLE'S X I N J I A N G Ejin Qi Yinkou HOHHOT Jining REP. OF Baotou Fuxin Dandong Qinhuangdao KOREA Datong For detail, see Dongsheng BEIJINGBEIJING Tangshan Dalian Ruoqiang TIANJIN Bo Hai 36° Jiayaguan IBRD 34726 Wuhai Baoding TIANJIN Shenmubei Zhangye H EB E I Cangzhou REP. OF YINCHUAN Yulin TAIYUAN SHIJIAZHUANG Yantai Weihai KOREA Dezhou Zibo Area of Wuwei Map Zhongwei Liulin Handan JINAN Qingdao JAPAN CHINA XINING SHANXI Yan'anbei Yellow Golmud NINGXIA Anyang S H A N D O N G Rizhao LANZHOU SHAANXI Xinxiang Sea QINGHAI Huang Linyi Huangling Lianyuang 32° Luoyang Kaifeng Xuzhou G AN SU Sanmexia ZHENGZHOU JIANGSU Ton Tangyu XI'AN HENAN Haian X I Z A N G g tian Bengbu Gyegu Fuyang Nantong Nanyang NANJING Ankang Shiyan Xinyang HEFEI Xiangfan SHANGHAI For detail, see Changxing AN HUI SHANGHAI IBRD 34727, 34728 BEI H UJingmen Anqing HANGZHOU Ningbo 28° SICHUAN WUHAN East ING Daxian Chang Jia ng Yichang Huangshi Shaoxing GQ CHENGDU ZHEJIANG Lan Nu Jiujiang China Jinsha NEPAL LHASA Jingsha can ON Enshi Jinhua g CH CHONGQING NANCHANG Sea Yiyang Wenzhou CHANGSHA NATIONAL HIGHWAY SYSTEM: AVIATION SYSTEM: Yibin Xiangtan Xichang J I A NG XI NATIONAL EXPRESSWAY SYSTEM: INTERNATIONAL AIRPORTS Huaihua HUNAN Zhouzhou G UI Z HOU Hengyang Laizhou Lanping Chaling Taihe FUZHOU 24° EXISTING OTHER AIRPORTS GUIYANG Yongzhou Leiyang UNDER CONSTRUCTION Panshihua Ganzhou FUJIAN ADMINISTRATION: Quanzhou PLANNED “7918�: Dali Longyan SELECTED CITIES Guilin Pingshi LINKS TO BEIJING Gantang Zhangzhou Xiamen Baoshan KUNMING G U A N G X I TAIWAN TAIWAN PROVINCE CAPITALS Shuiren NORTH–SOUTH CORRIDORS Ruili Nu Zhao'an YUNNAN Hechi Liuzhou GUANGDONG NATIONAL CAPITAL Yuxi Xinxu EAST–WEST CORRIDORS Guping Wuzhou GUANGZHOU Shangtou PROVINCE BOUNDARIES LHASA TERMINAL CITIES NANNING Shenzhen Lan INTERNATIONAL BOUNDARIES Zhuhai 20° can Simao Yulin Kowloon g Foshan MYANMAR NATIONAL WATERWAYS SYSTEM: Qinzhou MACAO Pingxiang Fangcheng HONG KONG MAJOR NAVIGABLE WATERWAYS Maomi MACAO Shangyong VIETNAM Beihai HONG KONG 0 100 200 300 Kilometers MAJOR RIVERS Zhanjiang OTHER RIVERS This map was produced by the Map Design Unit of The World Bank. LAO PEOPLE'S HAIKOU 0 100 200 300 Miles RIVER PORTS The boundaries, colors, denominations and any other information DEM. REP. Basuo shown on this map do not imply, on the part of The World Bank SEA PORTS Group, any judgment on the legal status of any territory, or any THAILAND HAINAN PHILIPPINES endorsement or acceptance of such boundaries. 108° 112° 116° 120° 124° Sanya JUNE 2006 RUSSIAN FEDERATION ELEVATIONS IN METERS: 109° 110° 111° 4000 HEILONGJIANG 3000 This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information 2000 MONGOLIA shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any JILIN 1500 endorsement or acceptance of such boundaries. 1000 Sea of O L Japan 500 NG LIAONING I MO D.P.R. OF 200 NE BEIJING KOREA BEIJING TIANJIN HEBEI REP. OF Yellow KOREA NINGXIA SHAANXI SHANXI SHANDONG Sea Hiqu GANSU JI A SHAANXI HENAN East N G ANHUI SU China SHANGHAI Sea Fugu Kuy HUBEI G IN He SICHUAN 39° Q ) ZHEJIANG eH NG 39° ( Huang O e CH JIANGXI HUNAN GUIZHOU FUJIAN Shengmu er Yellow Riv YUNNAN TAIWAN GUANGXI GUANGDONG PACIFIC HONG KONG OCEAN HUBEI Tu Yu w MACAO l ei VIETNAM in LAO He He P.D.R. HAINAN PHILIPPINES Yulin CHINA 107° 108° 210 Hong l SHAANXI ANKANG ROAD i u He Jia Xian 38° DEVELOPMENT PROJECT Hengshan SHAANXI PROVINCE Mizhi e 307 Lu H TRANSPORT INFRASTRUCTURE Zizhou Dingbian Lingshen Jingbian Shiwan Wubu W Suide u ANKANG – MAOBA EXPRESSWAY di ng EXPRESSWAY SECTIONS FINANCED BY THE BANK He Yan NATIONAL HIGHWAY SYSTEM: Zichang Qingjian He NATIONAL EXPRESSWAY SYSTEM: 37° EXISTING “7918� 210 Wuqi Ansai Yanchuan UNDER CONSTRUCTION Lu o Zhidan SHANXI 319 NATIONAL HIGHWAY SYSTEM He Yan'an Yanchang SECONDARY ROADS Yan He RAILROADS Hu lu NATIONAL WATERWAYS SYSTEM: Gangquan He Yellow River MAJOR NAVIGABLE WATERWAYS OTHER RIVERS Yichuan 309 36° AVIATION SYSTEM: GANSU Fu Xian (Hu ang AIRPORTS Huaishuzhuang He) Shangzhenzi Luochuan ADMINISTRATION: Huangling Huanglong SELECTED CITIES Hancheng Luo H PROVINCE CAPITAL Yijun e PREFECTURE BOUNDARIES PROVINCE BOUNDARIES Changwu Heyang Baishui Xunyi S Chengcheng Tongchuan h ic ua 35° h Bin Xian n Pucheng He 211 Jin Long Xian Yao Xian g 310 He Chunhua Fuping Dali Qi an Yongshou Qianyang He Linyou He Yun Yang Wei Fengxiang Jingyang Weinan Wei e H Famensi Qishan Tongguan Baoji Xianyang 310 Guozhen Lintong HENAN Jiangzhang XI'AN Lamtian ng Tangyu Zhouzhi Changan J ia Luonan 34° ng 34° Taibai li Jia Sanyaosi Feng Xian Shangchou Houzhenzi i sh u Danfeng Shagoujie Bao 108 Zhashui He Liuba 312 ui sh Shanyang Xu e 316 Fuoping Shangnan H i Sehepu Lueyang He Zhengan Tumen 108 Ningshan Manchuanguon Xianghe Yang Xian 33° Hanzhong Shiquan 33° 108 Nanzheng Xixiang Hanyin H an He Ningqiang ma 316 Mu ui Sh Xunyang Baihe i H a n S hu Ankang Beiba Zhengba He g Ziyang Pingli D on HUBEI ng Jialing Jia Langao SICHUAN Dang Shui Nan Jiang 32° 0 25 50 75 32° Zhenping KILOMETERS IBRD 34726 For Detail, see JUNE 2006 IBRD 34727 106° 107° 108° 109° 110° 111° IBRD 34727 RUSSIAN KAZAKHSTAN FEDERATION CHINA PROVINCE CAPITAL PREFECTURE BOUNDARIES SHAANXI ANKANG ROAD DEVELOPMENT PROJECT HEILONGJIANG PROVINCE BOUNDARIES MONGOLIA JILIN Sea HUBEI ANKANG – MAOBA EXPRESSWAY COMPONENT OL of KYRGYZ G ON LIAONING D.P.R. OF J a p a n REP. M XINJIANG NE I BEIJING KOREA NINGXIA BEIJING HEBEI TIANJIN REP. OF JAPAN PROPOSED ANKANG – MAOBA EXPRESSWAY SHAANXI SHANXI KOREA NINGXIA SHANDONG Yellow SHANXI QINGHAI Sea FUTURE EXTENSION OF THE EXPRESSWAY TO BE DECIDED JIANGSU GANSU SHAANXI HENAN EXISTING ROADS: SELECTED TOWNS SHANGHAI E a s t BRIDGES GANSU ANHUI EXPRESSWAYS RIVERS G XIZANG HUBEI IN SICHUAN ZHEJIANG China Q TUNNELS NG XI NATIONAL HIGHWAYS O Sea NG CH HUNAN PROVINCE BOUNDARY JIA GUIZHOU FUJIAN INTERCHANGES PROVINCIAL HIGHWAYS National Capital TAIWAN YUNNAN GUANGDONG GUANGXI Philippine Province Boundaries SERVICE AREAS RAILROADS HONG KONG Sea XI'AN International Boundaries VIETNAM MACAO HENAN LAO Bay of P.D.R. HAINAN PARKING ZONES B e n g a l PHILIPPINES This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any HUBEI endorsement or acceptance of such boundaries. SICHUAN Area of Map SHAANXI PROVINCE Ha Hengkou nS K2 hui 10 JIAJIAPING QILIGOU Haophe K280 60 Pailou K270 K2 Wuli K220 Ziyang K2 Gaotan 15 K29 00 Daba K2 K240 0 35 Maoba Bajiao Liushui K2 50 K225 DABA K2 STARTING POINT OF Zihuanggou ROUTE K201+700 Maliu K300 Donghe Ankang Han Sh u LINHE SICHUAN To Daxian PROVINCE 0 5 10 KILOMETERS AUGUST 2006 IBRD 34728 32°45'N H a nyin CHINA SHAANXI ANKANG ROAD DEVELOPMENT PROJECT Hanyin LOCAL ROADS IMPROVEMENT COMPONENT 1 List of Roads under LRIP 15 Number County Description Road Level Length Class Number County Description Road Level Length Class 4 12 1 Hanbin Kuqian Road District 41.604 IV 55 Ziyang Maowa Road Town 15.50 IV 13 2 Hanbin Haoliu Road District 21.282 IV 56 Ziyang Maolian Road Town 10.048 IV 8 11 3 Hanbin Sangzheng Road District 13.365 IV 57 Ziyang Gaorao Road Town 17.70 IV 14 10 Ankang 4 5 6 Hanbin Hongniu Road Hanbin Dalin Road Hanbin Xiangshan Road District Town Town 31.73 27.00 7.20 IV Deleted IV 58 59 60 Ziyang Ziyang Ziyang Gaobai Road Gaowan Road Banjie Road Town Town Town 11.10 14.04 14.60 IV IV IV 28 7 18 6 17 Hanbin 7 8 Hanbin Nanying Road Hanbin Daxiang Road Town Village 12.079 19.00 IV Non 61 62 Ziyang Ziyang Hongshang Road Yunfeng Road Town Village 14.30 6.00 IV Non 9 Hanbin Xinbatielu Road Village 15.37 Non 63 Ziyang Xianglu Road Village 7.50 Non 3 10 Hanbin Qixin Road Village 10.00 Non 64 Ziyang Lianfeng Road Village 5.00 Non 16 HUI 21 HAN S 11 Hanbin Wangkanzi Road Village 12.00 Non 65 Ziyang Shijia Road Village 5.02 Non 1 12 Hanbin Baimashi Road Village 12.93 Non 66 Ziyang Paotai Road Village 10.00 Non 13 Hanbin Shuangping Road Village 13.00 Non 67 Ziyang Tianchang Road Village 2.16 Non HA 14 Hanbin Bailongquan Road Village 19.06 Non 68 Ziyang Xinma Road Village 4.00 Non NS HU 15 Hanbin Yongqing Road Village 7.00 Non 69 Ziyang Xingqing Road Village 11.13 Non I 16 Hanbin Xiangshan Road Village 9.50 Non 70 Ziyang Tangmogouzi Road Village 5.00 Non 99 17 Hanbin Zhonggou Road Village 5.99 Non 71 Ziyang Nanmu Road Village 6.20 Non 2 20 23 71 HANZHONG 73 98 66 22 19 18 19 20 Hanbin Sanping Road Hanbin Yugong Road Hanbin Zhouwan Road Village Village Village 13.76 8.93 14.00 Non Non Non 72 73 74 Ziyang Ziyang Ziyang Jiaping Road Wahei Road Chefeng Road Village Village Village 3.18 16.15 12.00 Non Non Non 70 24 29 21 Hanbin Niushan Road Village 15.88 Non 75 Ziyang Huoya Road Village 7.00 Non REFE P REF ECT URE CTURE 61 75 Ziyang 49 62 25 22 23 Hanbin Mani Village Road Hanbin Huaishu Road Village Village 14.01 9.02 Non Non 76 77 Ziyang Ziyang Jinpen Road Yuanqiang Road Village Village 10.13 10.00 Non Non 68 24 Hanbin Taiping Road Village 10.03 Non 78 Ziyang Dazhong Road Village 9.00 Non 72 40 26 27 25 Hanbin Liangtian Road Village 12.01 Non 79 Ziyang Jiming Road Village 11.15 Non 32°30'N 67 53 26 Hanbin Gaojialiang Road Village 18.98 Non 80 Ziyang Tianshengqiao Road Village 7.10 Non 77 27 Hanbin Qunya Road Village 13.09 Non 81 Ziyang Hejiabu Road Village 10.00 Non Ziyang 76 69 65 9 28 29 Hanbin Hongyang Road Hanbin Yudu Road Village Village 20.00 15.44 Non Non 82 83 Ziyang Ziyang Quanhe Road Lancao Road Village Village 5.00 6.00 Non Non 63 80 44 30 Langao Landa Road County 45.075 IV 84 Ziyang Shenmo Road Village 14.50 Non 108 79 48 35 74 38 Land Road Rehabitation 31.5 IV 85 Ziyang Gaotan Road Village 5.13 Non 31 Langao Minheng Road County 47.324 IV 86 Ziyang Longhu Road Village 3.14 Non 64 86 88 32 Langao Daguan Road County 46.268 IV 87 Ziyang Daba Road Village 4.19 Non 45 33 Langao Shiguan Road County 15.074 IV 88 Ziyang Pailou Road Village 5.00 Non 59 78 34 Langao Tiemiao Road Town 12.42 Non 89 Ziyang Sanping Road Village 5.00 Non 95 87 85 ANKANG PREFECTURE 34 35 36 37 Langao Fenghong Road Langao Xinxi Road Langao Yuehong Road Village Village Village 7.98 6.03 10.01 Non Non Non 90 91 92 Ziyang Ziyang Ziyang Maoxin Road Rangou Road Desheng Road Village Village Village 18.00 6.12 6.12 Non Non Non 82 81 38 Langao Liulin Road Village 6.03 Non 93 Ziyang Watan Road Village 5.01 Non 48 39 Langao Shizi Road Village 6.02 Non 94 Ziyang Luzhu Road Village 10.00 Non 92 58 89 84 50 40 Langao Dachun Road Village 10.03 Non 95 Ziyang Anping Road Village 6.00 Non 96 83 36 41 Langao Guanbei Road Village 10.00 Non 96 Ziyang Laozhuang Road Village 10.00 Non 47 46 42 Langao Huatai Road Village 8.02 Non 97 Ziyang Yantang Road Village 6.11 Non 55 93 90 57 52 Pin g li 43 44 Langao Qiba Road Langao Mogou Road Village Village 4.80 4.60 Non Non 98 99 Ziyang Ziyang Lazhu Road Dalian Road Village Village 4.00 7.12 Non Non 91 45 Langao Xingfu Road Village 6.05 Non 100 Ziyang Hongmiao Road Village 7.12 Non 101 54 39 46 Langao Xinhua Road Village 5.15 Non 101 Ziyang Duanjiagou Road Village 4.16 Non 97 42 30 47 Langao Tuanyuan Road Village 6.28 Non 102 Ziyang Liangan Road Village 19.26 Non 48 Ziyang Yuzi Road Province 74.050 III/IV 103 Ziyang Chenhai Road Village 3.01 Non 52 49 Ziyang Gunsan Road County 15.58 IV 104 Ziyang Shuyan Road Village 7.02 Non 37 50 Ziyang Dongshuang Road County 34.92 IV 105 Ziyang Qingyan Road Village 5.30 Non 104 105 56 107 51 Ziyang Waliao Road County 38.00 Deleted 106 Ziyang Shuimo Road Village 7.11 Non 43 52 Ziyang Quanhui Road County 80.12 IV 107 Ziyang Shuangliu Road Village 11.15 Non 94 53 Ziyang Dongda Road Town 10.51 IV 108 Ziyang Chaowan Road Village 11.50 Non 102 32 Langao 54 Ziyang Gaotie Road Town 14.40 IV 100 Total: 106 roads for a total length of 1,391.75 km 103 60 32°15'N 106 PROVINCE CAPITAL This map was produced by the Map Design Unit of The World Bank. 33 The boundaries, colors, denominations and any other information PREFECTURE BOUNDARIES shown on this map do not imply, on the part of The World Bank PROVINCE BOUNDARIES Group, any judgment on the legal status of any territory, or any 41 Langao INNNER MONGOLIA endorsement or acceptance of such boundaries. NINGXIA S H A N X I RU SSI A N F EDER ATI O N SHAANXI SICHUAN 31 K A Z A K H STA N HEILONGJIANG MO N GO LI A JILIN S ea GANSU L of Ja p a n KYRGYZ REP. N GO LIAONING D.P.R. OF MO XINJIANG NEI BEIJING KOREA 108°15'E BEIJING TIANJIN REP. OF HEBEI SHANXI KOREA NINGXIA SHANDONG JAPAN WORLD BANK FINANCED ROADS RAILROADS QINGHAI UNDER LRIP N JIANGSU AN GANSU TOWNSHIP SEATS XI'AN SHAANXI HENAN NA SHANGHAI EN EXPRESSWAYS ANHUI East COUNTY CAPITALS HUBEI HE XIZANG ING CHONGQING ZHEJIANG SICHUAN China H GQ NATIONAL HIGHWAYS ON GXI Sea CH PREFECTURE CAPITAL JIAN HUNAN FUJIAN PROVINCIAL ROADS NATIONAL CAPITAL GUIZHOU COUNTY BOUNDARIES TAIWAN Area of YUNNAN GUANGXI GUANGDONG Philippine COUNTY ROADS 0 5 10 Kilometers Map PROVINCE BOUNDARIES PREFECTURE BOUNDARIES HUBEI HONG KONG MACAO Sea TOWNSHIP ROADS INTERNATIONAL BOUNDARIES LAO VIETNAM PROVINCE BOUNDARIES 108°30'E 108°45'E SICHUAN Bay of P.D.R. HAINAN PHILIPPINES B e n g a l CHONGQING DECEMBER 2012