Document of The World Bank FOR OFFICIAL USE ONLY Report No: 67538-CN PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF $100 MILLION TO THE PEOPLE‟S REPUBLIC OF CHINA FOR THE HUBEI XIANGYANG URBAN TRANSPORT PROJECT March 26, 2012 China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective December 31, 2011) Currency Unit = US$ RMB Yuan 6.4 = US$1 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS ATC Area Traffic Control ORAF Operational Risk Assessment CCTV Closed Circuit Television Framework DA Designated Account PDO Project Development Objective EIA Environment Impact Assessment PLG Project Leading Group EMP Environmental Management Plan PMO Project Management Office FM Financial Management PP Procurement Plan IA Implementing Agency PT Public Transport IBRD International Bank for Reconstruction RAP Resettlement Action Plan and Development RPF Resettlement Policy Framework ICB International Competitive Bidding XCIC Xiangyang Construction M&E Monitoring and Evaluation Investment Corporation MOF Ministry of Finance XMG Xiangyang Municipal Government NCB National Competitive Bidding VMS Variable Message Sign NMT Non-Motorized Transport TA Technical Assistance OP Operational Policy TM Traffic Management Regional Vice President: Pamela Cox, EAPVP Country Director: Klaus Rohland, EACCF Sector Director: John Roome, EASSD Sector Manager: Paul Kriss, EASCS /Vijay Jagannathan, EASIN Task Team Leader: Ke Fang, EASIN Table of Contents I. Strategic Context ..................................................................................................................... 1 A. Country Context .............................................................................................................. 1 B. Sectoral and Institutional Context................................................................................... 1 C. Higher Level Objectives to which the Project Contributes ............................................ 2 II. Project Development Objectives ............................................................................................. 3 A. PDO................................................................................................................................. 3 B. Project Beneficiaries ....................................................................................................... 3 C. PDO Level Results Indicators ......................................................................................... 3 III. Project Description .................................................................................................................. 3 A. Project Components ........................................................................................................ 3 B. Project Financing ............................................................................................................ 4 IV. Implementation ........................................................................................................................ 5 A. Institutional and Implementation Arrangements ............................................................ 5 B. Results Monitoring and Evaluation ................................................................................ 5 C. Sustainability................................................................................................................... 5 V. Key Risks and Mitigation Measures ....................................................................................... 6 VI. Appraisal Summary ................................................................................................................. 6 A. Economic and Financial Analysis ................................................................................... 6 B. Technical ......................................................................................................................... 7 C. Financial Management .................................................................................................... 7 D. Procurement .................................................................................................................... 7 E. Social (including safeguards) .......................................................................................... 8 F. Environment (including safeguards) ............................................................................... 8 VII. Other Safeguards Triggered (if required) ................................................................................ 8 Annex 1: Results Framework and Monitoring................................................................................ 9 Annex 2: Detailed Project Description ........................................................................................ 12 Annex 3: Implementation Arrangements ..................................................................................... 18 Annex 4: Operational Risk Assessment Framework (ORAF) ...................................................... 27 Annex 5: Implementation Support Plan........................................................................................ 29 Annex 6: Team Composition ........................................................................................................ 31 . PAD DATA SHEET People’s Republic of China Hubei Xiangyang Urban Transport PROJECT APPRAISAL DOCUMENT . EAST ASIA AND PACIFIC EASCS Basic Information Date: March 26, 2012 Sectors: General transportation sector (100%) Country Director: Klaus Rohland Themes: Other urban development (85%), Climate change Sector Paul Kriss/John A. (10%), Urban services and housing for the poor Manager/Director: Roome (5%) Project ID: P119071 EA B - Partial Assessment Category: Lending Instrument: Specific Investment Loan Team Leader(s): Ke Fang Joint IFC: No Borrower: People‟s Republic of China Responsible Agency: Ministry of Finance Contact: Han Su Title: Director Telephone : (86-10) 6855-1125 Email: mofhansu@gmail.com Project Implementation Start 26-Apr-2012 End Date: 31-Mar-2017 Period: Date: Expected Effectiveness Date: 16-Sep-2012 Expected Closing Date: 30-Sep-2017 Project Financing Data(US$M) [ X] Loan [ ] Grant [ ] Other [ ] Credit [ ] Guarantee For Loans/Credits/Others Total Project Cost (US$M): 210.87 Total Bank Financing 100.00 (US$M): Financing Source Amount(US$M) Borrower 110.87 International Bank for Reconstruction and 100.00 Development Total 210.87 Expected Disbursements (in USD Million) Fiscal Year 2013 2014 2015 2016 2017 2018 Annual 10.00 20.00 35.00 20.00 10.00 5.00 Cumulative 10.00 30.00 65.00 85.00 95.00 100.00 Project Development Objective(s) The proposed Project Development Objective (PDO) is to improve mobility and accessibility within and to the Xiangcheng District of Xiangyang in an integrated, efficient and safe manner. Components Component Name Cost (USD Millions) Public Transport 19.64 Urban Roads 172.31 Traffic Management 11.67 Capacity Building 4.67 Compliance Policy Does the project depart from the CAS in content or in other significant respects? Yes [ ] No [ X ] Does the project require any waivers of Bank policies? Yes [ ] No [ X ] Have these been approved by Bank management? Yes [ ] No [ X ] Is approval for any policy waiver sought from the Board? Yes [ ] No [ X ] Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ] Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X Safety of Dams OP/BP 4.37 X Projects on International Waterways OP/BP 7.50 X Projects in Disputed Areas OP/BP 7.60 X Legal Covenants Name Recurrent Due Date Frequency Subsidiary Agreement No Condition of Effectiveness Description of Covenant Authorization/ratification by the Borrower and Xiangyang Municipality of the Subsidiary Agreement between Xiangyang Municipality and Xiangyang Construction Investment Corporation. Name Recurrent Due Date Frequency Project Execution Yes Description of Covenant The Xiangyang Municipality shall maintain, throughout the period of implementation of the Project, the Project Management Office (PMO) in a manner and substance satisfactory to the Bank, with such composition, powers, functions, funds and other resources as shall be necessary to enable it to effectively manage and supervise the implementation of the Project. Name Recurrent Due Date Frequency Project Execution Yes Description of Covenant The Xiangyang Municipality shall, for the purpose of implementing the activities within XCIC‟s responsibility and mandate, make available to Xiangyang Construction Investment Corporation the proceeds of the Loan, under a Subsidiary Agreement agreed at the negotiations. Team Composition Bank Staff Name Title Specialization Unit Mansha Chen Urban Specialist Urban land use planning WBI Said Dahdah Transport Specialist Transport planning & Road Safety ETWTR Ke Fang Sr. Urban Transport Spec. Team Leader EASIN Jingrong He Procurement Analyst Procurement & Contract EASCS Management Haixia Li Sr. Financial Management Spec. Financial Management EAPFM Maria Luisa G. Juico Program Assistant Operational Support EASIN Teresita Ortega Program Assistant Operational Support EASIN Xin Ren Environmental Specialist Environmental Specialist EASCS Andrew Salzberg Urban Transport Specialist Urban transport planning EASIN Luquan Tian Transport Specialist Transport planning & Traffic EASCS Engineering Haiyan Wang Sr. Disbursement Specialist Disbursement CTRFC Wei Wang Junior Professional Associate Junior Professional Associate EASIN Lei Wu Team Assistant Operational Support EACCF Guoping Yu Procurement Specialist Procurement & Contract EASCS Management Zhuo Yu Disbursement Specialist Disbursement CTRFC Jun Zeng Social Development Specialist Social Development Specialist EASCS Non Bank Staff Name Title Office Phone City Alain Bertaud Urban Planner, Consultant Gladys Frame Traffic Management Specialist, Consultant Gordon K. Neilson Public Transport Specialist, Consultant Samuel L. Zimmerman Urban Transport Specialist, Consultant Locations Country First Administrative Location Planned Actual Comments Division China Hubei Xiangyang X I. Strategic Context A. Country Context 1. China‟s dramatic economic growth over the past twenty years has been accompanied by unprecedented urbanization. The urbanization rate has increased from less than 25 percent in1985 to 46.5 percent in 2009. The Government expects 20 million people to migrate from the countryside to urban areas each year for the next 20 years. Rapid growth in urban areas, combined with a restructuring of the economy, has led to large and growing urban transport challenges. 2. Economic growth and urbanization have not occurred uniformly: a number of coastal cities and major regional economic centers (often the provincial capitals) have absorbed a large percentage of economic and urban growth, while smaller cities in the hinterland have developed more slowly. In recent years, however, urban growth has picked up in Western China, and many inland cities have started facing many of the challenges that major coastal city centers (e.g., Beijing, Shanghai) had experienced in the earlier phases of their rapid development. The most notable challenge is a rapid rise in motorization rates leading to increased congestion, deteriorated performance of public transport service, degraded air quality, and rising traffic accidents and fatalities. B. Sectoral and Institutional Context 3. At the national level, urban road infrastructure development remains a priority area for investment, particularly for cities in central and western China. The government is increasingly emphasizing the need to focus on „people-centered‟ development. The State Council issued Directive 46 in 2005, which specifically requires provincial and city governments to provide “priority for public transport.� In a related initiative, the National Road Safety Law of 2004 emphasizes the importance of urban traffic safety and also requires “People First� strategies. 4. In response to the national government‟s policy, many coastal cities, having completed vast construction programs of primary road infrastructure over several years, have started shifting their investment priority towards public transport (including metro/light rail systems). Most inland cities, however, are still struggling to make adequate investments in basic road infrastructure, and are only beginning to develop their capacity for comprehensive urban transport planning and management. 5. While increasing investment in basic road infrastructure will be necessary for these cities to achieve their development goals in the short to medium term, experience in more advanced Chinese cities has also shown that development of road infrastructure alone is not sufficient to achieve sustainable, equitable, and efficient transport. Recent World Bank (the “Bank�) analytical work has found that in many Chinese cities, although a world class primary road infrastructure has been constructed very rapidly in recent years, the quality of public transport and traffic safety has not substantially improved because these services received inadequate attention during road development. However, addressing these areas remains a considerable 1 challenge, particularly in cities in central and western China that have relatively weaker institutional capacity than coastal cities. 6. Xiangyang is a perfect example of just such a mid-sized city entering a key phase in its development1. In response to the operational challenges identified above in Xiangyang, there is a need to design an engagement that: (a) demands and builds coordination across the relevant public transport, construction and traffic management agencies from the project preparation stage; (b) is relatively simple and contained, so as not to test the capacity of the municipality; (c) has the possibility for significant impact; and (d) focuses on building capacity through implementation. C. Higher Level Objectives to which the Project Contributes 7. The proposed Hubei Xiangyang Urban Transport Project (“the Project�) is consistent with the Bank Country Partnership Strategy for China for 2006-2010 (approved by the Board on May 23, 2006), which seeks among other objectives, to improve the competitiveness of various regions of China and the overall investment climate, and to address the needs of disadvantaged groups and underdeveloped areas by financing infrastructure. Specifically, the project supports the objectives of: (a) promoting balanced urbanization; (b) reducing poverty, inequality, and social exclusion; (c) financing sustainable and efficient growth; and (d) improving public and market institutions. The Government has requested that the new CPS for 2011-2015 be co- terminous with, and aligned to, its 12th Five Year Plan, covering 2011-2015; the CPS is currently being finalized. The objectives of the Project are expected to be consistent with the new CPS. 8. The Bank is ideally positioned to support Xiangyang in undertaking the Project. The Bank has been China‟s urban transport development partner for over 20 years and has provided over $1.8 billion in lending for more than 15 urban transport investment projects, supporting Chinese cities to develop and implement a broad range of policy and institutional reforms, as well as infrastructure investments in the urban transport sector. The China Urban Transport Operational Strategy (2010) calls for Bank support to urban transport at both national and city levels. At the city level, the Bank will support the implementation of national government policy initiatives, public transport development, and capacity building. Moreover, the Bank will increase cross-sectoral work in crucial areas relating to urban transport, including urban land use management. 9. Through financial and technical support to investment projects, the Bank provides cities with an opportunity to access global knowledge and international best practice. Xiangyang municipal government has explicitly noted that in addition to financing, it is seeking the Bank‟s knowledge support to strengthen urban transport planning, preparation and implementation of investment projects, operations, and management practices. 1 Xiangyang, formerly known as Xiangfan, is located in Hubei Province, with an urban population of 1.2 million (compared to 6 million urban population in Wuhan, the capital city of the Province). The city‟s economy has seen strong double-digit GDP growth in recent years due to industrial development. Per capita GDP in Xiangyang reached $1,837 in 2009, just half of the national average ($3,680) and far lower than that of Wuhan ($7,533). 2 II. Project Development Objectives A. PDO 10. The proposed Project Development Objective (PDO) is to improve mobility and accessibility within and to the Xiangcheng District of Xiangyang in an integrated, efficient and safe manner. A key focus will be the demonstration of integrated improvements in public transport services, traffic safety conditions (particularly for pedestrians), and traffic management on selected transport corridors in the project area. B. Project Beneficiaries 11. Project beneficiaries include: existing public transport riders and projected new public transport riders travelling on the Route 13 corridor who are likely to achieve significant improvement in their mobility and accessibility to their homes, jobs, and urban services; existing and projected new residents in Panggong Area who will be served by adequate transport services; users of all transport modes in Xiangcheng District who are likely to achieve travel time savings; and more broadly, urban residents of Xiangyang who will benefit through reduction in the negative local externalities of automobile traffic (congestion, air pollution, traffic accidents) in project affected areas. The total number of people who will benefit directly from the project is expected to be more than 460, 000 by 2016. C. PDO Level Results Indicators 12. Achievement of the PDO will be measured through a combination of indicators including: (a) travel times of bus journeys on the Route 13 corridor; (b) accessibility of residents living in the Panggong Area to the city center by car and by bus; (c) feedback of public transport users (including disabled and vulnerable groups) through public transport user satisfaction surveys on the Route 13 corridor; (d) average annual records of fatalities and severely injured, associated with traffic accidents based on continuous three year data. (See details in Annex 1: Results Framework) III. Project Description A. Project Components 13. Component 1: Public Transport. This will include investment in: (a) construction of traffic management, safety, and bus priority facilities along Route 13 corridor; (b) reconstruction of select bus bays along the Route 13 corridor in selected locations; (c) construction of two bus depots and upgrading of the bus terminal in front of the city‟s railway station; (d) acquisition of high capacity buses, and intelligent transit applications; and (e) provision of technical assistance for detailed design and implementation of the application of the integrated corridor management approach. 14. Component 2: Urban Roads. This will include investment in: (a) construction of the east section of the South Ring road; (b) construction of selected primary roads and secondary 3 roads in the Panggong area; and (c) provision of technical assistance for detailed design and implementation aimed at integration of land use and transport development. 15. Component 3: Traffic Management. This will include investment in: (a) construction of management and safety facilities on the Tanxi/Xijie/Dongjie corridor, major junctions on the west section of South Ring Road, and selected roads in Panggong area; (b) acquisition of an area traffic control system, including installation of traffic signals on Route 13 corridor, Tanxi/Xijie/Dongjie corridor, major junctions on South Ring Road, and project roads in Panggong area, and acquisition of equipment for a traffic command center and enforcement and monitoring equipment; (c) carrying out of a road user education program; and (d) provision of technical assistance for the use of advance technology for traffic management, including for ensuring the integration of non-motorized transport and parking. 16. Component 4: Capacity Building. This will include: (a) provision of technical advisory services, interalia, for the carrying out of: (i) studies on strategic urban transport issues; (ii) training and capacity building for the Project Implementing Entity‟s (Xiangyang Municipality‟s) officials involved in urban transport planning and management; and (iii) training and capacity building for the PMO staff to help them implement the Project in compliance with contract management, fiduciary and safeguard requirements; and (b) acquisition of office equipment for the PMO and office expenditures required for managing the implementation of the Project. B. Project Financing Lending Instrument 17. The Bank will finance the project through a specific investment loan. The Borrower has selected a US dollar denominated single currency variable spread loan option with a twenty-five year term, including five years of grace period. Project Cost and Financing 18. The estimated total project cost is $210.87million (approximately RMB1.35 billion). Table below indicates the Project cost and Bank financing by component. Estimated Cost Estimated Cost Bank Financing Bank Financing (RMB million) (USD million) (RMB million) (USD million) Public Transport 125.70 19.64 85.76 13.40 Urban Roads 1102.79 172.31 462.98 72.34 Traffic Management 74.67 11.67 59.78 9.34 Capacity Building 29.90 4.67 29.89 4.67 Front-end fee2 1.60 0.25 1.60 0.25 Interest during 14.89 2.33 0.00 0 construction Total Project Cost 1,349.56 210.87 640.00 100.00 Note: 1 USD = 6.4 RMB 2 0.25% of the Loan. 4 IV. Implementation A. Institutional and Implementation Arrangements 19. In line with Bank funded urban transport projects in other Chinese cities, Xiangyang Municipal Government (XMG) has established a Project Leading Group (PLG) and a Project Management Office (PMO) for managing the preparation and the implementation of the Project. The PLG is chaired by a Vice Mayor and includes senior officials from all key municipal agencies. Daily project management will be carried out by the Project Management Office (PMO), headed by the Director of Xiangyang Development and Reform Commission, and supported by Xiangyang Construction Investment Corporation (XCIC). 20. XCIC, the bus company, and the traffic police will be responsible for implementation of the urban roads component, the public transport component, and the traffic management component respectively (see Annex 3 for further details.) B. Results Monitoring and Evaluation 21. Monitoring data for individual attributes will be collected by XCIC, the bus company, and the traffic police, while the overall responsibility for data collection, as well as coordination and evaluation, will rest with the PMO. Data already collected by municipal agencies will be utilized to avoid placing an undue burden on participating city agencies. Project budget has been allocated for additional surveys to be conducted during project implementation. C. Sustainability 22. As in other Bank-financed urban transport projects in China, project investments have been proposed by Xiangyang and have been prepared under the city government‟s guidance by domestic design institutes contracted by the city government. Past experience suggests that project investments are likely to be constructed to high quality standards and completed on schedule. Long term sustainability of the road assets will, however, depend on effective and timely maintenance. A review of municipal maintenance practices across Chinese cities suggests that this is not a significant concern, particularly for urban roads such as those to be financed by this project. 23. The key concern from a sustainability perspective is related to the improvements in public transport and safety. The integrated corridor approach adopted in this project will offer Xiangyang an opportunity to pilot a sustainable urban transport system on one key transport corridor on a demonstration basis. The city leadership has explicitly committed to following through on the proposal to ensure better public transport operations and enhanced safety and mobility for all road users on these corridors, especially the vulnerable population. Success of this corridor approach is expected to result in extending its coverage to the entire city. 24. Local capacity for addressing critical urban transport issues has significantly improved during project preparation, although knowledge gaps remain regarding the detailed design and 5 implementation of efficient and people-oriented corridors. Technical assistance has been included in each investment component to help the city address these issues. A client-driven institutional development and capacity building agenda has also been developed and will be implemented under the project. (See Annex 4 and Annex 5 for details). V. Key Risks and Mitigation Measures 25. As discussed in detail in Annex 4: Operational Risk Assessment Framework (ORAF), the overall risk of the Project is rated Moderate. The most critical risks are related to: (a) the implementing agencies, which have very limited experience with the Bank before; and (b) coordination among various municipal agencies, which could cause delays in project implementation. 26. To mitigate these identified risks, the city has followed good practice from other Chinese cities, e.g., establishment of a high level PLG to oversee project preparation and implementation, and the appointment of the Director of Xiangyang Development and Reform Commission (XDRC) as the head of the PMO. The Bank team has provided technical training as well as training on World Bank procurement, FM and safeguard policies, to PMO staff and other relevant municipal agencies during project preparation. Such training will be continued during project implementation. VI. Appraisal Summary A. Economic and Financial Analysis 27. Urban Roads Component. A formal economic evaluation, utilizing a transport planning model, was conducted for all investments under the urban roads component, which accounts for roughly 83% of total project investment. The principal measured benefits are savings in vehicle operating costs and time savings for bus and auto passengers. Increased safety for pedestrians and bicycle users and improved air quality benefits were not estimated. The estimated overall economic internal rate of return (EIRR) is 17.1 percent. The NPV at 10% discount rate is RMB 613 million. 28. Public Transport and Traffic Management Components. Both public transport and traffic management investments comprise mostly low-cost investments, which are either essential operational items (such as maintenance facilities, depots, and signals), or enhance quality for transport users (such as transfer interchanges, bus shelters, bus priority, and pedestrian crossing signals). Designs for all works have been optimized from a cost effectiveness perspective. Such investments typically provide high rates of return in terms of increase in the competitiveness of bus services, reduced travel time for all vehicles, and lower operational costs for all vehicles. These investments will also bring broad socio-economic and environmental benefits through improved mobility and accessibility for all city residents (particularly the poor and the vulnerable groups), reduction in congestion and vehicle emissions, and/or reduction in traffic accidents and fatalities. 6 29. Fiscal Impact. Based on an analysis of municipal finance information provided by XMG, the project is considered to be affordable for the city; the proposed counterpart funding strategy is acceptable. B. Technical 30. The project is tailored to focus on issues critical to the immediate challenges of urban transport in the city, including the adoption of components focused on public transport and traffic management, both of which include innovative concepts that focus on moving people (rather than vehicles) safely and efficiently. All investment components have been prepared by reputable Chinese design institutes with guidance from international experts. Technical designs proposed are based on sound engineering practices and local context. 31. The integrated corridor management (ICM) approach is based on close coordination between the design institute and the bus company, the traffic police, the construction bureau and the PMO, in order to produce an appropriate package of integration. Feasibility studies of the PT corridor improvements summarized the aspects where the integrated corridor approach presented: (a) bus operations (GPS equipped intelligent dispatching and operation scheduling system); (b) fixed infrastructure for public transport (bus depots, bus bays and bus stop location optimization); (c) on-street bus priority (“queue jumper� and signal priority at busy intersections); (d) better designed and less polluting buses; (e) traffic engineering and public transport; (f) safety improvement for pedestrians and NMT (safe crossings); and (g) traffic management through better education and enforcement (Road User Education Campaign and ATC systems). C. Financial Management 32. A financial management (FM) assessment conducted by the Bank identified the principal risk to be: Xiangyang Construction and Investment Corporation (XCIC) and its project financial staff do not have prior experience with Bank financed projects. The agreed mitigation measures include: (a) tailored FM training to all project financial staff before and during project implementation; and (b) issue of a project management regulation and a withdrawal application regulation by Hubei Provincial Finance Bureau (HPFB) to provide guidance to project financial staff. The assessment concluded that with the implementation of these actions, the proposed financial management arrangements will satisfy the Bank‟s minimum requirements under OP/BP 10.02. See detailed FM arrangements in Annex 3. D. Procurement 33. Xiangyang Construction Investment Corporation (XCIC), where the PMO has been established, handles the procurement of several large value municipal engineering construction contracts annually. The PMO procurement staff has rich experience in carrying out procurement based on the Tendering and Bidding Law of China and local procurement regulations. However, the staff is new to Bank procurement policies and requirements. To reduce the procurement risk, the PMO has hired a procurement agent with Bank project experience to assist with project procurement. The PMO will implement measures agreed with the Bank to help mitigate the 7 identified procurement risks (See Annex 3 and Annex 4 for details). The procurement plan covering the initial 18 month period of project implementation has been prepared in accordance with Bank procurement policy (a summary of the plan is provided in Annex 3). E. Social (including safeguards) 34. The project will generate significant social benefits as it supports the development of public transport, pedestrian and bicycle facilities, and traffic safety measures. These measures are expected to benefit the most vulnerable elements of the society. 35. The project will involve land acquisition and involuntary resettlement, which may cause adverse social impacts; however, in some cases, displaced persons viewed the housing demolition as an opportunity to improve their living conditions significantly. The PMO has prepared a Resettlement Action Plan (RAP) and a Resettlement Policy Framework (RPF)3, consistent with relevant Chinese laws and regulations, as well as World Bank OP 4.12 on Involuntary Resettlement. F. Environment (including safeguards) 36. The proposed project has been assigned category B in accordance with OP/BP 4.01. The project is expected to have a net positive impact overall on the environment. In line with the requirements of Bank OP 4.01 and relevant domestic regulations, an environmental assessment (EA) was carried out. The EA includes baseline environmental and socio-economic condition, project description, impact assessment, alternative analysis and public consultation. The EA was conducted in parallel to the project feasibility study and helped integrate environmental considerations with technical designs. An Environment Management Plan (EMP) has also been prepared based on the EA and has been adopted by XMG. A description of the EA and the EMP is included in Annex 3. 37. Similar to other urban transport projects, adverse environmental impacts during construction are expected to be mainly noise, dust, waste disposal, workers‟ health and safety, social and traffic disturbance. These impacts are moderate and mostly of a temporary nature, with well established mitigation measures. Major negative impacts during operation include air pollution, noise, and sewage from bus depots, as well as the indirect impacts of resettlement and industry relocation. VII. Other Safeguards Triggered (if required) 38. No additional safeguards are triggered by this Project. 3 The RPF was necessary because alignments of some project roads were not yet been finalized by appraisal, and if it is identified on a later date that land acquisition is required for those roads after alignments, separate RAP(s) will be developed in accordance with the RPF. 8 Annex 1: Results Framework and Monitoring CHINA: HUBEI XIANGYANG URBAN TRANSPORT PROJECT Results Framework Project Development Objective (PDO): to improve mobility and accessibility within and to the Xiangcheng District of Xiangyang in an environmentally sustainable, integrated, and safe manner. Cumulative Target Values** Description Responsibility Core PDO Level Results Unit of Data Source/ (indicator Baseline Frequency for Data Indicators* Measure YR 1 YR 2 YR 3 YR 4 YR 5 Methodology definition Collection etc.) Indicator One: Travel Average 19.65 22 24 Annual Surveys Bus company times of bus journeys on speed of km/h the Route 13 corridor buses during rush hours Indicator Two: Number To be 20% 50% Annual Road Planning Accessibility of residents of collected increase increase network Bureau living in Panggong Area residents in Year 1 maps and to the city center by car in annual new and by bus Panggong building area who permits in can access the the city Panggong center Area within 20 minutes by bus and car Indicator Three: % To be 50% Annual Surveys Bus Feedback of public expressing collected increase Company transport users (including positive in Year 1 disabled and vulnerable opinion on groups) through public bus transport user satisfaction services surveys on the Route 13 corridor 9 Indicator Four: Average number Tanxi Tanxi Tanxi Annual Police Traffic Police annual records of Road: 24 Road:20 Road: 16 reports fatalities and severely Route 13: Route Route 13: injured associated with 13 13:11 9 traffic accidents (based on continuous three years data) INTERMEDIATE RESULTS Intermediate Result Component One: Public Transport Bus priority intersections number 0 17 Annual Field visits Construction constructed Bureau Existing bus stops number 0 100. Annual Field visits Construction upgraded or new bus stops Panggong, Bureau constructed 62; Route 13, 38 New and higher quality number 0 40 Annual Field visits Bus company buses in operation Intermediate Result (Component Two): Urban Roads Construction of new roads % 0 100% Annual Surveys Construction completed (by km) Bureau Intermediate Result (Component Three): Traffic Management Intersections with traffic number 0 42 Annual Surveys Traffic Police signals with non- conflicting pedestrian phase in operation Signalized mid-block number 0 47 Annual Surveys Traffic Police crossings on PT corridor in operation Area Traffic Control 0 1 Annual Traffic Police (ATC) System for number Xiangcheng District in operation 10 Intermediate Result (Component Four): Institutional and Capacity Development Studies completed number 0 5 Annual PMO Technical staff from number 0 All trained Annual PMO and relevant municipal relevant agencies trained agencies PMO staff trained number 0 All trained Annual PMO *Please indicate whether the indicator is a Core Sector Indicator (see further http://coreindicators) **Target values should be entered for the years data will be available, not necessarily annually. 11 Annex 2: Detailed Project Description CHINA: Hubei Xiangyang Urban Transport Project A. Project Context 1. Xiangyang, one of the second level cities in Hubei Province, is located 300 km northwest of the capital Wuhan. The city is divided by Han River and its branches into three major urban areas: Xiangcheng, Fancheng, and Youfanggang. It has an urban population of 1.2 million living inside an urban built-up area of about 120 km2, compared to 6 million in 200 km2 in Wuhan. The city‟s economy is mainly industry-based and only in recent years has the city seen strong double-digit GDP growth. Per capita GDP in Xiangyang was $1,837 in 2009, only half the national average ($3,680) and far lower than that of Wuhan ($7,533). 2. The city faces the following critical urban transport challenges: (a) Insufficient capacity to cross the Han River, with only two bridges currently available – one of them is an aged single lane bridge, hampering the connection between the city‟s two major centers of Xiangcheng and Fancheng. 4 (b) An under-developed road network, as the city is fast expanding into peri-urban areas where urban road networks are yet to be developed. (c) A small public transport network that is insufficient to provide a high quality of service to meet the growing travel demand of the urban residents. (d) Weak traffic management, with little or no safety and traffic management/enforcement measures on the majority of the road junctions and pedestrian crossings. 3. In light of Chinese national priorities and the experience of other Chinese cities, Xiangyang has an opportunity to develop a transport infrastructure that reflects a balance between the need for road network development and the needs of public transport and non- motorized modes that are still the mainstay of a majority of its residents. An integrated approach will require coordinating road improvements with improvements in the quality of public transport service and improvements in the safety and convenience of travel for public transport users who rely on walking or cycling to access or egress from bus stations. This is particularly crucial as more than 60% of the trips are presently made on public transport, walking and cycling. As Xiangyang pursues sustainable development and green transport strategies, the role of public transport and non-motorized transport will become even more important in the future. 4 This issue is being addressed by the city itself as two new bridges are being constructed now, but even after completion of the two bridges, the connection will remain poor between Fancheng district and the downtown, as well as Panggong Area – the new city center under development. 12 B. Lessons Learned and Reflected in the Project Design 4. The Independent Evaluation Group (formerly the Operations Evaluation Department) and the Quality Assurance Group assessments of the Bank infrastructure portfolio in China have confirmed satisfactory project implementation, outcomes, and project management. Experience from a full range of projects financed by the Bank in the transport and urban sectors points to the importance of Borrower ownership (particularly of institutional development components) and the appropriateness of capital investments, as well as arrangements for proper operations and maintenance. This project has been designed to incorporate these lessons, in particular: (a) Defining simple activities reflecting a comprehensive approach. One of the primary benefits to a city from a Bank intervention is an integrated focus on all elements of urban transport. However, the Bank‟s first generation of urban transport investments suffered from long implementation periods and disbursement lags resulting from complex multi- component projects. This project has been designed to achieve the benefits of a comprehensive approach with minimal complexity. It will focus on a few critical transport corridors in the city in a confined geographic area – integrating road capacity, public transport, and traffic safety enhancements to maximize the demonstration impact. (b) Developing a client-driven institutional agenda. A constant challenge in urban transport projects in China has been to reconcile the need for reform with the knowledge that reform is successful only when it is client-driven. The project supports national policies on road infrastructure, traffic safety, and public transport priorities. The project‟s institutional development support is in the form of technical assistance for implementation of the investment components, two priority studies, and a series of study tours and capacity building initiatives built around periodic workshops, which will be designed based on demand from relevant city agencies. (c) Appropriate indicators for urban transport projects remain a challenge. Reconciling the need for outcome-based measurement and evaluation directly attributable to the project with the client‟s focus on outputs is a challenge in the urban transport sector. A simplified set of outcome indicators, primarily corridor-specific outcomes, including a pilot GIS-based accessibility indicator, have been selected for this project. C. Project Development Objectives 5. The proposed Project Development Objective (PDO) is to improve mobility and accessibility within and to the Xiangcheng District of Xiangyang in an environmentally sustainable, integrated, and safe manner. D. Project Components Component 1: Public Transport 6. This component will help strength public transport in Xiangyang through an integrated corridor management (ICM) approach in the selected corridor. Component activities include: 13 (a) Construction of traffic management, safety, and bus priority facilities along Route 13 corridor. Public transport priority measures along Route 13 corridor have been developed to target extreme peak hour congestion, including so-called “queue jumper� lanes, coupled with signal priority for buses at congested intersections along Changhong Road, and NMT and parking management measures. (b) Construction of bus bays along Route 13 corridor. Carefully designed bus bays (including shelters and other facilities) will be constructed at select stops along Route 13. (c) Construction of bus depots. Two bus depots will be built: Yanshan Bus Depot, which will accommodate about 200 buses; and Xiangyang Economic Development Zone Bus Depot which will accommodate about 250 buses. Both bus depots will provide facilities for refueling, cash collection, bus washing and other basic maintenance services. (d) Upgrading the Railway Station bus terminal. This sub-component will provide shelters, bus stop platform improvement, pedestrian sidewalk improvement to improve bus flow efficiency, passenger amenities, and enhanced safety and security. (e) Higher quality buses. New buses will be purchased with low platforms, air conditioning, automatic transmission, higher capacity and lower emission. (f) Applications of intelligent transit systems. GPS (Global Position System) devices will be installed in all buses to enable bus operators to utilize intelligent transit system applications, including intelligent bus dispatching systems, improved vehicle and crew scheduling, upgraded service planning, and better passenger information system. (g) Technical assistance for detailed design and implementation. Technical assistance will focus on the application of the ICM approach and help the city develop capacity for ICM. Component 2: Urban Roads 7. This component will support construction of key links of the urban road network, particularly primary and secondary roads in the Panggong Area, where the city plans to develop a new city centre. Component activities include: (a) Construction of the east section of the South Ring Road. This road will provide a critical connection between the Panggong Area and the city center in Fancheng District. (b) Construction of selected primary roads (including required bus bays) and secondary roads in the Panggong Area, in phases to provide accessibility in the area. (c) Technical assistance for detailed design and implementation. In addition to the assistance on road design and construction, technical assistance will be provided to support urban design activities for the integration of land use and transport development. 14 Component 3: Traffic Management 8. This component will help improve road safety and road capacity on major corridors connecting the Panggong Area with other parts of Xiangcheng District. Component activities include: (a) Traffic management and safety facilities. e.g., junction channelization, traffic signs, mid-block crossings, etc. on the Tanxi/Xiejie/Dongjie corridor, major junctions on the west section of the South Ring Road, and project roads in the Panggong area. (b) An area traffic control (ATC) system, including traffic signals on major intersections and pedestrian crossings along the Route 13 corridor, the Tanxi/Xiejie/Dongjie corridor, the South Ring Road, and project roads in the Panggong area, equipment for a Traffic Command Centre, and enforcement and monitoring equipment (E-police, CCTV, VMS), and related facilities. (c) Road User Education (RUE) program. It involves: (i) design of road safety handouts for communities, schools, offices, villages, and households; and (ii) design of platforms to cooperate with media for further road user education. (d) Technical assistance for detailed design and implementation. Assist the city to utilize advanced technology for better traffic management, as well as ensure that NMT and parking issues are integrated into the package. Component 4: Capacity Building 9. Component activities include: (a) Selected studies on strategic urban transport issues. Two topics have been tentatively identified: a comprehensive green urban transport plan for Xiangyang city, and a feasibility study for new river crossings to improve connectivity between the Panggong Area and Fancheng district. (b) Training and capacity building (including study tours) for relevant agencies to improve capacity for urban transport planning, public transport planning and management, traffic management, and integrated land use and transport planning. (c) Training and capacity building (including visits to other World Bank PMOs) for PMO staff to improve capacity for implementing the project, and complying with FM, procurement, and safeguards requirements. It will also finance incremental operation costs of the PMO, including office equipment, printing, etc. 15 10. A summary of each component is provided in the table below: Physical Component Issues to be addressed Measures Location(s) Public Route 13  On-road public transport  Construction of bus queue jumper Transport Corridor priority  Improving bus stops  Public transport service  Construction of new depots  Public transport  Improving bus terminals infrastructure  Rationalization of bus routes/services  Clean vehicles  Utilization of ITS for bus operations  New buses Urban Roads Panggong  Road infrastructure  Construction of motorways and NMT Area  NMT facilities lanes  Public transport provision  Construction of underground utilities along roads  Landscaping along roads  Reservation for bus stops Traffic Route 13  ATC and Traffic Signals  Traffic signals, signals, and controlling Management Corridor,  Improvements in existing system Tanxi/Xiejie/ junctions  Junction channelization/improvements Dongjie  Safe pedestrian/NMT  Signalized mid-block crossings corridor, and crossings  TCC equipment South Ring  E-police Road  CCTV  VMS Capacity N/A  Public transport planning  Training and capacity building for Building and operations urban transport officials/planners  Traffic management  Training and capacity building for  Integrated land use and PMO staff transport planning  Strategic planning studies  Project management capacity for PMO 16 E. Project Costs 11. Estimated project costs by components and by procurement activities are provided in the table below: Estimated Estimated Bank Bank Cost Cost Financing Financing (RMB (USD (RMB million) (USD million) million) million) By Components Public Transport 125.70 19.64 85.76 13.40 Urban Roads 1102.79 172.31 462.97 72.34 Traffic Management 74.67 11.67 59.77 9.34 Capacity Building 29.90 4.67 29.90 4.67 Sub-total 1333.06 208.29 638.40 99.75 Front-end fee 1.60 0.25 1.60 0.25 Sub-total 1334.66 208.54 640.00 100.00 Interest during construction 14.89 2.33 0 0 Total project cost 1,349.55 210.87 640.00 100.00 By Categories Civil works 684.70 106.98 526.53 82.27 Goods (or equipment) 79.07 12.35 79.07 12.35 Consultancy (for detailed 64.39 10.06 0 0 designs) Consultancy and training 32.80 5.13 32.80 5.13 Land acquisition and 347.36 54.28 0 0 resettlement Sub-total 1,208.32 188.80 638.40 99.75 Physical contingencies 96.85 15.12 0 0 Price contingencies 27.89 4.36 0 0 Sub-total 1333.06 208.29 638.40 99.75 Front-end fee 1.60 0.25 1.60 0.25 Sub-total 1334.66 208.54 640.00 100.00 Interest during construction 14.89 2.33 0 0 Total project cost 1,349.55 210.87 640.00 100.00 Note: US$ 1= RMB 6.4 17 Annex 3: Implementation Arrangements CHINA: Hubei Xiangyang Urban Transport Project A. Summary of Institutional Responsibilities Entity Project Responsibilities Project Leading Group (PLG)  Oversee project preparation and implementation and make key decisions. PMO (established at the Xiangyang  Service as the secretariat for the PLG Construction Investment Corporation and  Supervise and coordinate preparation and headed by the Director of XDRC) implementation of all components, including technical design, FM, procurement, and safeguards.  Conduct overall monitoring & evaluation.  Prepare required project reports and submit to the Bank. Xiangyang Development and Reform  Responsible for overall development planning Commission (XDRC) for the city and coordination among all government agencies.  Leading the PMO. Xiangyang Finance Bureau  Managing fund flows from the provincial government to the project.  Managing disbursement of the loans.  Fiduciary control over the project. Xiangyang City Planning Bureau  Responsible for land use plans for the Panggong Area and areas along the Route 13 corridor. Xiangyang Construction Investment  Daily operation of the PMO. Corporation  Implementation of the road component.  Supervise all civil works under the project. Xiangyang Municipal Service  Responsible for O&M of roads constructed Administration under the project. Xiangyang Public Security Bureau Traffic  Responsible for implementation and O&M of Police Detachment the traffic management (TM) component. Xiangyang Bus Group Company  Responsible for implementation and O&M of the public transport component. Xiangyang Environment Protection Bureau  Responsible for independent environmental monitoring and inspection of project activities. District Government  Responsible for implementation of the RAP. B. Project Administration Mechanisms 1. Xiangyang Municipal Government (XMG) has established a Project Leading Group (PLG) and a Project Management Office (PMO) for managing the preparation and the implementation of the Project. The PLG is chaired by a Vice Mayor and comprises senior 18 officials from all key municipal agencies, including the Development and Reform Commission, the Finance Bureau, the Planning Bureau, the Construction Commission, the Environmental Protection Bureau, the Land Resources Management Bureau, and the Xiangyang Construction Investment Corporation (XCIC). It will oversee project preparation and implementation, and make key decisions. 2. Daily project management will be carried out by the PMO, headed by the Director of Xiangyang Development and Reform Commission and supported by XCIC. The PMO is currently responsible for preparing feasibility studies, social and environmental assessments, detailed designs, as well as procurement documents in accordance with the Bank guidelines. It will also manage the overall project implementation, including implementation of procurement, contract management, resettlement, social and environmental safeguard action plans, the institutional development component, loan disbursement requests, fiduciary compliance, results monitoring, evaluation, and reporting. 3. XCIC, the bus company, and the traffic police will be responsible for implementation of all three investment components, i.e., respectively, the urban roads component, the public transport component, and the traffic management component. 4. The PMO will play a critical role in terms of execution of studies and training efforts under the Capacity Building component. The PMO will serve as the executing agency, responsible for implementing all TA studies under each investment component. All relevant agencies, particularly the lead agency, will be consulted at regular intervals, including the finalization of terms of reference, inception report, mid-term report and draft final report for each study. C. Financial Management, Disbursement and Procurement Financial Management 5. The FM capacity assessment identified the principal risks that Xiangyang Construction and Investment Corporation (XCIC) and its project financial staff do not have prior experience with Bank financed projects. Mitigation measures agreed include: (a) tailored FM training plan provided to all project financial staff before and during project implementation; and (b) issue of a project management regulation and a withdrawal application regulation by Hubei Provincial Finance Bureau (HPFB) to provide guidance to project financial staff. The overall pre- and post- mitigation FM risk has been assessed as “Moderate�. 6. Budgeting. Xiangyang Construction Investment Corporation (XCIC) will be responsible for preparing the annual implementation plan. To make sure that the counterpart funds could be appropriated in a timely manner during project implementation, counterpart fund availability will also be reflected in the budget report. A standardized project progress report has been designed for the project. XCIC will conduct a semi-annual variance analysis, which will be furnished to the Bank with the unaudited semi-annual financial reports. 7. Funds Flow. Bank loan proceeds will flow from the Bank into a project designated account (DA) to be set up at, and managed by the Hubei Provincial Finance Bureau (HPFB). 19 Loans/funds will be disbursed either from HPFB to Xiangyang Municipal Finance Bureaus (XMFB), and then to XCIC, or from HPFB directly to contractors/suppliers, based on withdrawal applications. 8. Accounting and Financial Reporting. The administration, accounting and reporting of the project will be set up in accordance with Circular #13: “Accounting Regulations for World Bank Financed Projects�, issued by MOF in January 2000. XCIC will manage, monitor and maintain project accounting records, and will retain original supporting documents. XCIC will utilize User Friend accounting software to record the project accounts. 9. XCIC will be responsible for preparing the project financial statements and submitting them to the Bank for review and comment on a regular basis. The unaudited semi-annual project financial statements will be prepared and furnished to the Bank by XCIC no later than 45 days following each semester, in form and substance satisfactory to the Bank. 10. Internal Controls. The related accounting policy, procedures and regulations were issued by MOF to uniformly align with the financial management and disbursement requirements of Bank financed projects. HPFB will also issue the project management regulation and withdrawal application management regulation to provide guidance to XCIC. 11. There will be no formal independent Internal Audit department for the project. However, this will not affect the project‟s financial management, as management and monitoring from finance bureaus at various levels will review each withdrawal application, and the annual external audit will serve as the mechanism to ensure that financial management controls are functioning appropriately. 12. Auditing. Hubei Provincial Audit Office (HPAO) has been identified as auditors for the project. The annual audit report of project financial statements will be due to the Bank within six months after the end of each calendar year. Disbursements 13. Four disbursement methods are available for the project: advance, reimbursement, direct payment and special commitment. Supporting documents required for Bank disbursement under different disbursement methods are documented in the Disbursement Letter issued by the Bank. 14. One DA in US dollar will be opened at commercial banks acceptable to the Bank and will be managed by HPFB. The ceiling of the DA is documented in the Disbursement Letter. 15. The Bank loan would be disbursed against eligible expenditures (taxes inclusive) as in Table 1. 16. Retroactive financing of up to $20 million is available for payments made on or after November 30, 2011 for eligible expenditures under Categories (1) and (2). 20 Table 1: Eligible Expenditures Category Amount of the Loan Percentage of Expenditures Allocated to be financed (expressed in US$) (inclusive of Taxes) (1) Works 82,270,000 75% (2) Goods, non-consulting 17,480,000 100% services, and consultants‟ services (3) Front-end Fee 250,000 Amount payable pursuant to Section 2.03 of this Agreement in accordance with Section 2.07 (b) of the General Conditions (4) Interest Rate Cap or Amount due pursuant to Interest Rate Collar Section 2.07(c) of this premium Agreement TOTAL AMOUNT 100,000,000 Procurement 17. Following the procurement capacity assessment, the overall procurement risk for the project is assessed as moderate, and the following measures have been discussed and agreed with the PMO to mitigate the remaining risks:  Capacity of PMO Procurement Staff. An experienced procurement agent has been hired to assist the PMO with project procurement. More training will be provided to strengthen PMO procurement capacity, either by Bank procurement specialists or through attending Bank supported procurement workshops.  Procurement Cycle Management. A Procurement Management Manual (PMM), acceptable to the Bank, covering roles and responsibilities of PMO staff, procurement cycle management, contract variation management and complaint management, has been prepared and will govern procurement cycle management.  Differences between Bank Procurement Requirements and the Requirements of Local Regulations. Differences between Bank procurement and the Tendering and Bidding Law are addressed in the legal agreement and in the PMM. Procurement training for implementing agencies will focus on the differences between local procedures and Bank procedures, and highlight that in case of conflict between the loan agreement and the national procurement law and regulations, the loan agreement (including by reference the Bank‟s Procurement and Consultant Guidelines), the procurement plan and the PMM take precedence. 18. Project procurement will be carried out in accordance with the World Bank “Guidelines: Procurement under IBRD Loans and IDA Credits� dated May 2004 revised October 2006 and May 2010; “Guidelines: Selection and Employment of Consultants by World Bank Borrowers� 21 dated May 2004 revised October 2006 and May 2010; and the provisions stipulated in the Legal Agreement. NCB shall be carried out in accordance with the Law on Tendering and Bidding of the People‟s Republic of China, promulgated by the order of the President of the People‟s Republic of China on August 30, 1999 subject to the modifications stipulated in the Legal Agreement. 19. Prior review and procurement method thresholds for the project are indicated in Table 2. Table 2: Thresholds for procurement methods and prior review Contract Value Prior Review Expenditure Category Threshold Procurement Method Threshold (US$ (US$ thousands) thousands) 1/ 1. Goods and Non- ≥1,000 ICB All Consulting <1,000 NCB ≥500 Services <100 Shopping 1st Contract None Direct Contracting All 2. Works and Supply ≥20,000 ICB All and Installation of <20,000 NCB ≥5,000 Plant and <200 Shopping 1st Contract Equipment 3. Consultants ≥200 QCBS/QBS All Services <200 CQS ≥100 Individual consultant ≥50 and 1st contract Single source All selection (firm) Sole-source selection All (individual) 20. 1/All contracts to be financed through retroactive financing will be subject to prior review. A contract whose cost estimate was below the Bank prior review threshold is subject to prior review if the price of the lowest evaluated responsive bid (or, in the case of consulting services, the financial offer of the selected firm) exceeds such threshold at the bid/proposal evaluation stage. 21. In addition to prior review, the Bank will also carry out procurement post review on an annual basis with a sampling rate of one in fifteen contracts. Procurement Plan 22. The PMO has developed an acceptable procurement plan for the initial 18 month period project implementation. The procurement plan includes contracts that are to be awarded under advance contracting; all such contracts, irrespective of value, are subject to prior review. The various items under different expenditure categories are described below in Table 3. The procurement plan will be updated annually or as required to reflect the project implementation needs. The procurement plan and its updates will be published on the Bank‟s external website in accordance with the Guidelines. 22 Table 3: Summary of Procurement Plan 1 2 3 4 5 6 7 Ref. Description Estimated No of Domestic Review* Comments No. Cost Packages Preference by Bank (Prior Review US$ (yes/no) (Prior / Contracts) (million) Post) 1 Summary of the NCB 106.98 12 N/A Prior /Post ≥USD5m (Works) packages 2 Summary of the ICB 10.86 2 N/A Prior All (Goods) packages 3 Summary of the NCB 1.26 3 N/A Prior/Post ≥USD0.5m (Goods) packages 4 Summary of the Shopping 0.22 5 N/A Post 1st contract contracts (Non-consulting regardless of services) value for prior review 5 Summary of number of 0.02 1 N/A Prior All contract of Direct Contracting 6 Summary of number of 2.83 3 N/A Prior All contract ≥USD0.2m that will be let under QCBS/QBS 7 Summary of number of 1.25 8 N/A Prior/Post ≥USD0.1m contracts