/ +< 5 ) ( C R+ghIWy o o . . e 0 a 6 6 0 0 0 0 47 C. Longgang-Tanxii Highway . . . . . . . . . . . . . . 50 D. Road Improvement Program . . . . . . . . . . . . . . 52 E. Overall Evaluation . . . . . . . . . . . . . . . . . 54 Fe Risksoo ae o. oooooooo9o9oo...... ........................... 54 V. AGEMEM REACHpD MAI RECOMMENDATION . . . . . . . o... 55 TABLES 1.1 China: Freight Traffic Intensities in Selected Countries . 57 1.2 China: Road and Railroad Network Density in Selected Countries ..............................a.. . & * ............ 58 1.3 China: Freight Traffic . * . * . . . . * . . . . . . . . . 59 1.4 China: Passenger Traffic . . . .. .. . .. . . . * * o o.* 60 1.5 China: Investment in the Transport Sector (Including Posts and Telecommmincations) . . . . . . . . . . . . .. 61 1.6 China: Transport Investment vs. Economic Output . . . . . . 62 1.7 China: Highway Design Standards . . . . . . . . . . . . . . 63 1.8 Chinat Civilian Motor Vehicles * . . . . . . . . . . . . . 64 1.9 China: Highway Freight Transport . . . . . . . . . . . 65 2.1 Guangdong: Economic Data . . e a . . . . . . 0 . * * * 0 * 66 2.2 Guangdong: Demographic and Transport Network Data, 1990 . . 67 2.3 Guangdong: Road Network, 1985-91 . . . . . . . . . . . . . 68 2.4 Guangdong: Freight and Passenger Traffic, 1985-90 . . . . . 69 2.5 Guangdong: Length of Highway by ADT, Nationa'. Roads Only . 70 2.6 Guangdongx Vehicle Fleet, 1986-91. . . . . . . . . . C. . 71 2.7 Guangdong: Freight Handled by Public and Social Trucks . . 72 2.8 Guangdongt Road Safety . . . . . . . . . . . . . . . e . . 73 2.9 Guangdongs Highway Finances . . . . . . . . . . 9 . . . . 74 2.10 Guangdongs Fuel Prices .................. 75 2.11 Guangdongt Planned Highway Development in the 8FYP . . . . 76 3.1 Staff Training Program . . . . .. . . .. ......a . .o. 77 3.2 Project Cost Suoary . . ... . .. . . . . . . . . . .V . . 80 3.3 Estimated Disbursement Schedule . . . . . . . . . . . . . . 81 - ii - 1!LMI (cont'd) 4.1 Recent Traffic Growth on the Existing Foshan-Kaiping Road . 82 4.2 Recent Traffic Growth on the Existing Longgang-Tanxi Road 83 4.3 Traffic Counts on Longgang-Tanxi, October 16-18, 1991 . . . 84 4.4 Projected Traffic on the Foshan-Raiping Highway . * . . . r 85 4.5 Projected Traffic on the Longgang-Tanxi Highway . . . . . o 86 4.6 Estimated Construction Costs of Major Highways, Foshan-Kaiping and Longgang-Tamxi. . . . . . . a * . . . o 87 4.7 Average Economic Vehicle Operating Costs by Vehicle Class. Pavement Type and Condition, and Terrain .. . . . . . . . 88 4.8 Economic Evaluation without Tolling, Foshan-Kalping Highway 89 4.9 Economic Evaluation with Tolling, Foshan-Kaiping Highway . . 90 4.10 Economic Evaluation Sensitivity Test with Tolling, Foshan-Kalping Highay . . . . . . . . . . . . O * * * * * 91 4.11 Economic Evaluation without Tolling, Longgang-Tanxi Highway 92 4.12 Economic Evaluation with Tolling, Longgang-Tanxi Highway . . 93 4.13 Economic Evaluation Sensitivity Test with Tolling, Longgang-TanxiHighway .... . ............ . 94 4.14 Evaluation Sumary end Sensitivity, Foshan-Kaiping and Longgang-Tanxilighways ................. 95 4.15 Road Improvment Program: Sumary of the Economic Evaluation of th First Package . . . . . . . * . . . . . . * . . . e 96 1. Road Improvment Program . . . . . . .... . . .. . . . . . . . 97 2. Outline Terms of Reference for the Highway Financing Technical Assistgance . o . . . . . . . o . . . . . . . . . . . . . . . 116 3. Environmental AssessOmet, Management Plan, and Monitoring Summary for the Highway Infrastructure Components of the Project . . . . a . . . . . . . . . . . . . . . . . . . 123 4. Resettlement Action Plans 1 . . . . . . . . . . . . . . . . . 148 5. Implementation Schedule . . . . . . . . * . . . . . .. . . . . 156 6. SupervisionKLssionPlan . . . .... . . . . . . .. . .. . . o . . 161 7. Documents Available In the Project File . . . . . . . . . . . & 163 gu&m 1. Organization of the Guangdong Provincial Communications Departeant . . . . . . & . . . . . . . . . . 165 2. Organization of the Gungdong Provincial Highway Admin4stration Bureau . ............. .* 166 3. Organization of Environmental Protection Agencies . . . . . . . 167 1. IBRD 24225 - Major Highway Development Program 2. 3IBRD 23927 - Project Roads 3. IBRD 23928 - Foshen-Kaiping and Longgang-Tanxi Highways CHINA QUANGDONG PROVINCIAL HIGHWAY PROJEC- I. THE TRANSPORT SECTOR A. Introduction 1.1 The transport system in China is characterized by intensive freight traffic in relation to economic output, heavily suppressed demand, high utili- zation of assets, a strong emphasis on railways, and distortions in tariffs and costs. Freight traffic intensity in China, measured in ton-km per dollar of GNP is even higher than in the (former) Soviet Union, and is much higher than in India, Brazil or the United States (Table 1.1). The major reasons behind China's high freight traffic intensity are a relatively lirge heavy industry sector, reliance on coal as the major source of energy and a large volume of other bulk products. In addition, energy efficiency in China is relatively low, and there is still little preprocessing of raw mateeals before shipping. On the other hand, the density of China's transport network, measured both on the basis of geographic area and population, is among the lowest in the world (Table 1.2). Fiaure 1.1: INTERNATIONAL COMPARISONS OF LAND TRANSPORT NETWORKS Ihenatonal Comparisom of Railway Networks IntrtnaioMl Compans of Road Neworks 1,200' 2S00 1Q000 3000 SW ~~~~~~~~~~~~~~~~~~25 I0 lL 600 20,00 IS= I0-LX 0 i I1mp o-LLo^J IS 1-t -^ p 1*k e t on) ot pwwwPopiI4I 0 To* k 1m (kVn .0qk i ppelo inWln pepulefio 0l Road 1mp (kmn) par10 aq k M B. Traffic 1.2 Freitht Traffic. The economic reforms introduced since 1979 have provided the impetus for a large upsurge in both freight and passenger traf- fic, severely taxing the transport system. Total freight traffic has grown at about 8 percent per annum; port freight traffic also has grown at about 9 per- cent per aninum; and intercity highway freight traffic has grown at about 16 percent per annum--consistently hi5her than the growth of gross domestic -2- production (Table 1.3). These rates wouid have been even higher were it not for the capacity constrainto which are evident In all modes. Many power plants and factories have fallen short of their production goals because the transport syatem has not been able to deliver the needed raw materials in time. Coal production in Shanxi province, the largest acal producer, contin- uee to be hsapered by inadequate rail capacity. Rural areas throughout the country are snort of transport services, both for cron" and for local light industry. The capacity of navigable waterways has declined due to lack of investment in upgrading and maintaining navigation channels. At the ports, lack of modern facilities limits the hanCins in bulk of commodities such as fertilizers, cement, and grain. 1.3 Passenter Traffic. The transport system is fur er taxed by the marked growth in the demand for passenger travel in tLe last decade, Since the economic reforms of 1979, passenger trsffic has grown at nearly 10 percent per annum, illustrating the positive relationship between growth in income and growth in demand for travel (Table 1.4). Nonetheloos, passenger travel per capita in China remains very low, in part because of severe capacity con- straints. Civil aviation traffic, despite growing much faster than any other mode, is very still limited, and most long-distance journeys are made by rail. While a slowdown of economic activitiez, and corsequent drop in travel demand, in 1989/90 temporarily alleviated the congestion In transport facilities, shortages reemerged as high economic growth resumed. 1.4 Modal S2lit. Although the railway's share of traffic has declined ove- the last 10-20 years and such trend is likely to continue as the share of road traffic grows, unlike in other countries, rail transport still dominates freight and passenger traffic in China. In 1990, 58 percent of freight (Table 1.3) and 46 percent of passenger traffic (Table 1.4) were moved by rail, and the rest Was moved by road, inland waterway, coastal shipping, pipeline, and civil aviation. The continued preeminence of the railway is in part due to the structure of the Chinese economy, wherein heavy industry is prominent and coal is the dominant enargy source. Coal and the large quantities of other bulk inputs associated with heavy industry are well-suited for railway trans- port and constitute the majority of railway traffic In China. In the case of passenger transport, it is due partly to the virtual absence of private auto- mobiles, and partly to the limiLed ueG of aviation. Civil aviation's share was only 3.1 percent for passenger traffic and 0.04 percent for freight traf- fic. 1.5 As a result of the slowdown in economic activities in 1989/1990, transport demand, particul. t. of passengers, dropped significantly, and tem- porarily alleviated the congestion in transport facilities. Preliminary fig- ures indicate that resumption of high economic growth In 1991 has resulted in a corresponding surge in transport demand. C. lrastment 1.6 The Government of China (GOC) has repeatedly pronounced transport bottlenecks to be one of the most severe constraints to economic growth. How- ever, transport investment levels have not kept pace with the increased demands. Thus, while annual investments in the transport sector measured in current prices surged approximately three times during the period of the - 3 - fifth, sixth and seventh five-year plans (1976-90), the share of total public investmert dedicated to transport remained quit6 steady over this period, averaging about 13 percent (Table 1.5). Further, investments in transport infrastructure represented about 1.4 percent of GNP during 1980-909 compared to 2-3 percent feir countries such as South Korea and Brazil. Transport investments as a percentage of GNP ,tave declined from a high of 2.4 percent during the Fourth Five-Year Plan (1971-75), to 1.3 per˘cnt during the Seventh Five-Year Plan (1986-93), despite the absolute increase in transport invest- ments during the period (Table 1.6). In the future, a substcatial expansion of investments will be needed if the transport-related constraints to economic growth are to be removed. Figure 1.2: TRANSPORT DEMAND AND MODAL SPLIT TRENDS ChJM: Fnigt Trc Ciam hmqc Traf 0Nampmuau0 amS SW_ 4200~~~~~~~~~~~~~~4 60 0 3979 1990 399! i9m92 399 1984 398S 3996 1987 198 3989 3990 i w am a 9a am im mIU am am tm IOU IN t9wo D. TransDort Issues and Oblectives 1.7 The key issues in the transport sector are: (a) chronic shortages in the supply of transport services due to under- investments resulting in severe economic losses due to unmet demand; (b) excess demands generated by underpricing of transport services and transport-intensive commodities (particularly coal); (c) uneven development of modes (i.e., encessive reliance on rail, rela- tive neglect of other modes, and the absence of modern, integrated intermodal services); (d) lack of modern technology within each mode (obsolescent vehicles, infrastructure, and operating systems), resultir- 'n high operating costs and poor services; I~ ~ . . .r . . . -4 - (e) shortages nf human resource skills in specific key ares, particu- larly in multimodal planning and policy analysis, economic analysis, and user-centered logistics management; and (f) structural weaknesses in highway construction capabilities related to project and company management, quality control and procurement procedures. 1.8 Achieving a better balance between demand and supply is vital because chronic s8L rtages of transL,_ t services have been increasingly con- straining the growth of the Chinese economy. The effects have been seen in the past in electric power shortages due to lack of coal transport capacity, but transport constraints pose economic problems well beyond their effects on the energy bector. The poor quality of tranGport services resulting from shortages of often outmoded equipment and substandard, often congested infra- structure, imposes high costs and impedes the integration of markets, which is one of the major sources of economic efficioncy in modern societies. The ability :,f China to compete in wozld export markets is also reduced, particu- larly for light manufacturing and high-value agricultural exports, which require effictent, flexible, fast door-to-door services. 1.9 Despite recent adjustments, pricing distortions are still a major problem. Cost analyses conducted du-ring a recent study in Guangdong Province (GP) (para. 2.3) suggest that, despite substantial tariff increases in 1989, nationwide long-distance coal transport, for example, is underpriced by as much as 40 percent relative to long-run incremental costs, thus generating uneconomic excess demands which clog the transport system. Distortions in the opposite direction occur in highways and aviation, where tariffs may exceed long-run incremental costs, thus distorting the choice of modes. So far, enterprises have lacked appropriate incentives to set tariffs reflecting costs as they have had only limited financial autonomy, and competition among trans- port modes has been minimal due to the congested condition of the system, and to regulatory restrictions. 1.10 China has so far failed to acquire the full spectrum of modern transport technology. It still relies on the railway to handle much traffic that could be better served by modern highway vehicles and by the airplane. Both these modes are modernizing and are steadily increasing their share of total traffic, in highways for both freight and passengers, and in aviation especially for the movement of people. There is also some railway traffic which could be more economically served by coastal shipping. The Ministry of Railwaye in recent years has significantly increased tariffs for short-haul commodities, so as tvo encourage diversion of this traffic to other modes and to concentrate on long-haul bulk commodities, where its comparative advantage lies. 1.11 Over the long run, China's choice of which modes to expand and by hou much should be based on an understanding of the differences in costs and service characteristics of the different modes, on the one hand, and prospec- tive changes in the structure and level of transport demand, on the other. At the present time, there is a need for China to train planners and policy ana- lysts in the analytical tools necessary to analyze those choices or to iden- tify the instruments required to effect the necessary changes. -5- 1.12 Transoort Sector Reforms. The Government has already taken steps to respond to some of these challenges. Notably, it hass (a) made major adjustments in transport tariffs and is conducting cost- ing studies that will provide the basis for further adjustments. In addition, it has allowed local authorities more autonomy to plan, finance, and implement projects which vill expand transport capac- ity; (b) opened transport infrastructure, notably ports and highways, to participation by private financing. In highways, this will allow private capital to finance the construction of toll roads and bridges and to manage their operations; (c) allowed private individuals and commercially-oriented collective and township enterprises to provide passenger and freight transport services on roads and inland waterways and has encouraged provincial authorities to develop local railway systems; (d) carried out major structural reforms in the organization and manage- ment of civil aviation and in the ports, leading to increased finan- cial autonomy and accountability, less central government controls and paving the way for introduction of competitive services; (e) reduced operating and capital subsidies for major infrastructure services, through higher cost-recovery and creation of user-funded capital construction funds; and (f) encouraged introduction of more modern technology in the transport system primarily by improving rolling stock technology in the rail- way subsector; eihancing container and bulk handling capacity in the port subsector; improving road pavement design and geometric stan- dards for the expansion of motorization in the highway subsector; and increasing the use of computerized data processing and planning techniques in operations in all modes. E. Bank Group Particiation in the Transport Sector 1.13 The Bank Group has supported the initiatives of the Government in the transport sector through projects, sector studies, technical assistance, and training. Through May 1992, the Bank Group had loaned about $2.9 billion to China under 22 projects for the transport sector and presently is preparing several new transport sector projects. 1.14 The railway subsector has received $1,385 million in Bank Group funding under six projects (Loan 2394-CIA; Loan 2540-CIA; Loan 2678-CRA/Credit 1680-CIA; Loan 2968-CHA; Loan 3060-CIA/Credit 2014-CHA and Loan 3406-CIA). These projects have assisted with the expansion of capacity on key routes and the manufacture of electric locomotives, passenger coaches, and signaling equipment; one project is assisting construction of a line in Inner Mongolia. The most recent project is assisting with rail technology modernization; development of system-wide plans, planning tools and costing studies; and adding capacity where it is urgently needed. The audit of the First Railway - 6 - Project noted that physical components were well executed and that macropolicy adjustmento, especially In the area of tariff reforms, and investment priori- tization were likely to have the highest Impacts these conclusions are being considered in the railway project under preparation. 1.15 The hilhwa sgubsector has received about $788 million in Bank Group financing under seven projects (Loan 2539-CIA/Credit 1594-CIA; Loan 2811-CHA/ Credit 1792-CHGA Loan 2951-CKA/Credit 1917-CiA; Loan 2952-CHA; Credit 1984- CiA; Loan 3073-CHA/Credit 2025-CRA; Loan 3471-CRA). These projects provide for the construction of high-quality national and provincial roads totalling about 1,276 km, and the expansion and improvement of some 3,250 km of rural (lower class provincial, county, village) roads and major bridges. When com- pleted, saom of these roads will help to provide vital missing links in the national highway network; others will help to ease severe congestion in parts of the network or provide access to remote areas. The projects are also designed to provide foreign technical assistance and training of Chinese per- sonnel in areas such as supervision and quality control of road construction, design, and planning. Finally, the projects support studies on key issues of highway development such as road safety, pavement management, user charges, and methods of financing the expansion, improvement, and rehabilitation of the road network. The First Highway Project (Loan 2539-CRA, Credit 1594-CIA) is essentially completed; a Project Completion Report was issued in May 1992. 1.16 The yorts *ubsector ha received $509 million of Bank Group financ- ing under seven projects (Loans 2207-CIA, 2689-CIA, 2907-CiA, 2877-CIA, 30C6- CHAD and 3007-CIA, and Credit 5623-CIA). Most of the loan funds are being used in Shanghai, Tianjin, Dalian, Huangpu, Ningbo, and Xiamen for construc- tion of terminals, jetties, and berths for handling bulk commodities, general cargo, and containers, as well as the dredging of navigation channels. Funds also have been used for training, technical assistance, and various studies such as port planning, operations management, and containerization. The audit report of the first port project founa the project successfully completed, on time and below cost, but recommended developing long-term strategic investment options and Improving pre-qualification procedures; recommendations on the former point have been Incorporated in the preparation of the forthcoming port project in Shanghai, and recommendations on the latter have been taken into account in the discussion of procurement procedures in transport projects under preparation. The most recent port project to be financed was the Ship Waste Disposal Project which involves cofinancing between International Devel- opment Association (IDA) and the Global Envirozmental Facility (GEF) of improved ways of disposing of ship effluent. 1.17 The urban tr2ns0ort subsector had the first project (Credit 2296- CIA, $60 million) approved in September 1991. Intended as a first stage of a long-term program to upgrade and develop urban infrastructure in Shanghai, the project will finance capacity increases of key urban links and will assist Shanghai Metropolitan Government to improve planning, programming, finance and management of it urban transport system. 1.18 One wultlodal project was approved in 1991 (Loan 3316-CIA/Credit 2226-CIA, $154 million) to improve provincial transport in Jiangsu. While the main focus of the project is on rehabilitating the provincial road network, this projoct also includes the first loan to the inland waterway subsector, to - 7 - be used to rehabilitate a section of the Grand Canal and expand an important ship lock. 1.19 The dialogue between the Government and the Bank Group on transport sector operations and strategy has been strengthened both through the project preparation activities and project-financed studies mentioned above and through other studies carried out in collaboration with Chinese authorities. A provincial transport study has been conducted in Guangdong Province (para. 2.3) to support the design of a new multimodal transport plan in the province. The Bank Group also conducted a survey of the national water trans- port system, which has reaffirmed the need to further exploit the large poten- tial of the Chinese waterways. In preparation for future highway lending, the Bank assisted in the 1990 screening of national highway improvement proposals, aimed to better identify highway construction priorities. Chinese authorities and the Bank Group are currently preparing or undertaking new transport stud- ies which will focus on long-term strategies for the country transport system. These studies include a multiport optimization study to evaluate medium- to long-term options for developing the deep-water seaport at Ningbo; a study of strategic issues and the role of ports and shipping in southern China; a mult- imodal transport study to examine strategic options in developing the trans- port system for the Yangtze Economic Zone (Shanghai Municipality together with the provinces of Jiangsu, Zhejiang and Anhui)j a coal transport study to eval- uate strategies for alleviating coal delivery shortages through the year 2005; a railway investment study to optimize railway investments within a system- wide approach, a railway costing study that will allow the enterprise to establish cost-based tariffs, and preparation of a Railway Strategy Paper and a Highway Strategy Paper. In the highways subsector, the Bank and the Minis- try of Communications (HOC) are discussing preparation of a number of studies that will cover finance, management and other policy issues in infrastructure and in road transport services (para. 1.28). Finally, MOC and the Bank are discussing an HOC Institutional strengthening component for the proposed China Reform, Institutional Support and Preinvestment Project (CRISPP). 1.20 These projects and studies are helping to spur the growth and mod- ernization of the transport system. However, much more needs to be done to bring about the changes required to effectively deal with the emerging issues. In order to significantly alleviate the transport bottlenecks and rationalize the transport 4ystem, the Government would need, by the year 2000, to take the followiug measures: (a) increase the total level of transport investment in relation to GNP, to expand capacity to meet the new traffic demands and to clear up the backlogs caused by past underinvestment; (b) realize the most economical balance of investments among the major freight transport modes of railway, highway, and water; (c) realign further the prices of freight transport services and those of the major commodities, especially coal, to bring them closer to their true costas (d) incrse further the productivity of existing transport assets through technological modernization and management reforms; and - 8 - (e) improve multimodal investment decisions, both across and within modes, through the uee of analysis and planning tools that more reliably determine the optimum economic priorities of transport investments under budget constraints. 1.21 In the past, the Bank has supported the Government in implementing the above measures mainly by focussing on traffic capacity expansion and oper- ational efficiency improvement. While such support will remain, the Bank will broaden its strategy and will assist the Government in the design and imple- mentation of institutional and sectoral reforms in other areas, including investment planning, pricing and financing, servicost deregulation, opera- tional management, and transfer of advanced transport-related technology through training and provision of up-to-date equipment. F. The Hithway Subsector The National Highwav Network and its Utilization 1.22 The highwav network totalled about 1,028,000 km in 1990 and relative to either population or geographic area, ranked among the smallest in the world (Fig 1.1). About 30 percent of China's villages have no access to roads adequate for motor vehicles. Investment in the highway subsector has been rather modest, at 21 percent of total investment in the transport sector dur- ing the Seventh Five-Year Plan. Since the early 1980s, the highway system ias borne an increasing share of traffic. The network is, for the purposes of design and technical specifications, classified by the HOC as Expressway, and Classes 1, 2, 3 and 4 for various traffic capacities in different terrain. The geometric standards now being used for the various road classes is shown in Table 1.7. For administrative purposes, roads are classified as national, provincial, county, village, and special purpose. 1.23 China's road network consists mainly of ageing roads with neither the geometric capacity nor structural strength to carry current traffic. Many of the roads need upgrading in addition to normal maintenance and rehabilita- tion. A Bank policy study on road deterioration in developing countries classified China among the countries with an extensive and obsolete road net- work in need of modernization to meet the rapid growth in road transport. China has not neglected road maintenance but the ageing road system and out- moded maintenance technology have seriously constrained good maintenance prac- tices. China needs to mobilize domestic and external resources for moderniz- ing its road system with special emphasis placed on technology transfer, institutional improvement, and development of skills. There are few absorb- tive capacity constraints relative to achieving these objectives given China's decentralized, stable, and financially accountable highway administration structure. 1.24 The rapid growth of hilhwav traffic stems not only from the coun- try's rapid economic growth but also from other factors such as the national policy of shifting short--haul rail transport to road transport and the expan- sion of the service sector and rural industries. Furthermore, with the increase in foreign trade, growth in transport demand will be concentrated in transport corridors serving the main ports and their hinterlands and, with the containerization of the higher value commodities, most domestic movements for this foreign trade is expected to go by road. The new economic activities have generated traffic in excess of what the existing facilities can accommo- date. Congestion on oads resulting from the mix of slow-moving non-motorized and motorized traffic is a serious problem. Road pavements, which are gener- ally well maintained, are showing increasing levels of roughness. 1.25 The vehicle fleet totalled some 5.5 million trucks, buses and cars in 1990, with trucks comprising over 71 percent. Most trucks are of four-ton capacity with outmoded designs and low fuel efficiency. Most of the trucks and buses are gasoline powered. These vehicles were manufactured domestically and, until recently, the production of trucks was barely sufficient to replace the retired vehicles, let alone meet growing demand. It was not until the early 1980s that a large number of modern vehicles was imported and joint- ventures with foreign manufacturers were started to manufacture trucks; pro- duction has grown steadily to reach 647,000 units in 1988, but dropped consid- erably in 1989 and 1990 due to the economic recession in those years. This production is contributing to the creation of a new fleet, although the older vehicles still dominate. 1.26 The tractor and motorcycle flepts, at 4.6 million and 4.2 million, rival the size of the truck and bus fleet. Both tractors and motorcycles offer a relatively cheap and basic form of transport, but add seriously to traffic congestion on rural roads (principally tractors) and urban streets (mainly motorcycles), and are a major cause of road accidents. 1.27 Growth in the truck and bus fleet has been fairly steady over the last 12 years, with particularly strong growth in small passenger vehicles. Growth in the tractor and motorcycle fleets has increased sharply, with motor- cycles showing the strongest growth of all vehicle types (Table 1.8). 1.28 The trucking industry consists of Publiclv-owned trucks operated by trucking companies affiliated with local (provincial or district) highway authorities, and other trucks operated by factories, cooperative organizations and, recently, private individuals. The relaxation of trucking regulations in the early 1980s allowed own-account trucks to haul cargo for other factories and cooperatives and thus promoted competition between public and own-account trucks. In fact, non-public trucks have absorbed most of the growth in traffic over the past few years (Table 1.9). However, trucking costs are extremely high, stemming in part from technological factors (poor roads, outmoded truck., etc.) but also from the lack of professional common carriers, which is essential to the development of modern and efficient trucking services. While market forces are expected to play a more important role in shaping the indus- try in the future it is necessary to understand the current constraints to such development and to identify the measures needed to allow the reshaping of the industry to take place. In order to explore these issues more fully, a Provincial Trucking Study has been included as a component of the proposed Henan Provincial Highway Project, and a separate study of the Highway Trucking Industry is part of the formal sector program for FY93. 1.29 Road safety is a major issue in China's transport system. A study completed in 1987 under the First Highway Project found the accident rate to be 100 deaths per 10,000 vehicles, one of the highest in the world, and cost- ing the Chinese economy close to $1 billion, annually. The study also identi- - 10 - fied essential measures needed to be taken, including improved police accident reporting; introduction of computer-based accident analysis; identification of accident causes and dangerous road spots; preparation of guidelines for road safety design; improved administrative procedures; improved manpower training; and preparation of a road safety action plan. Addressing comprehensively the road safety problem has been hampered by the transfer, early in 1988, of responsibility for highway safety matters from the HOC and the provincial Communications Departments to the Ministry of Public Security and its provin- cial units. This decision has created administrative barriers difficult to overcome and, as a result, little progress has been achieved in improving road safety. However, a Road Safety Pilot Program is planned as part of this proj- ect to address some of the key highway design issues involved in road safety conscious design, and to train highway engineers in the Province (para. 3.30). Highway Administration. Plannina and Finance 1.30 The provincial governments, through the Highways Bureaus of the Provincial Transport Departments (PTDs), are responsible for the administra- tion of the hiahway network. Arrangements for administration vary among prov- inces; in the more decentralized ones, the county and municipal governments perform some administrative and all of the operational functions relating to the highway network. The central government's MOC provides general policy guidance and support to the PTDs through its nationwide policies and regula- tions, specifying design and construction standards. HOC also provides spe- cialized manpower for planning and design, and also construction equipment for major provincial civil works, if nseded. However, the PTDs are financially independent of HOC and carry out all the road planning, construction, mainte- nasce, and administration of roads and waterway, in the provinces. MOC is more heavily involved only in some large projects which are considered of national importance and for which COC shares part of the financial burdea. 1.31 While the provinces manage the country's highway network, HOC is responsible for 2lanning and investment strategies for the development of the National HiRhwaY System. A reclassification of the country's road network in 1981. led to the designation of key interprovincial links as National Highways. More recently, HOC has been evolving a long-term strategy for the systematic upgrading of the national system in key corridors over a 30-year planning horizon. The system, comprising twelve major routes, would connect all the provincial capitals and cities with population exceeding 500,000; route selec- tion would generally be based on the potential for maximizing industrial pro- duction in the corridors selected for the initial, minimum-length network (see Map IBRD 24225). Construction of 25,000 km of high standard, access-con- trolled roads is epected to be completed by 2025. Priority for early con- struction is being given to those routes already congested and hindering eco- nomic activity. By the end of 1991, some 500 km of the system had been built, and a total of 4,000 km is envisaged to be completed by the end of the Eighth Five-Year Plan (8FYP) In 1995. The proavincial governments are responsible for route location, engineering design, construction, operation and maintenance of the national highway system. 1.32 The system for fundina hiahwav construction and main nance is well established through the country under the guidance of MOC, althr.gh there are differences between provinces according to local needs and circumstances. The - 11 - main revenues are generated by the Road Maintenance Fee (RMF), levied on the revenue of freight and passenger transport companies and on the capacity of aw-accoUnt vehicles. These are levied by the provinces who retain the major- ity of the monies after remitting a proportion to Central Goveranient agencies (soe pera 2.20). The HOC also directly receives revenues from the Added Vehi- cle Purchase Feet a supplementary earmarked tax on vehicle imports and sales, and use these funds, which currently reach about Y 2 billion/year, to con- tribute financtng for: (a) the roads inciuded In the national highway network, providing a higher share of financing for the poorer, hinterland provinces and a lower share for the richer, coastal provinces, and (b) construction or reha- bilitation of rural roads located In poverty-stricken areas. According to a recent study by MOC, if existing sources for funding both national and provin- cial roads are not lmproved, by the year 2000 they will provide 30 percent leos than needed to develop the highway system in line with the growth in demand. The Issue is especially critical in the coastal provinces with the fastest economic growth, where the road system are experiencing the highest levels of congeotion and deterioration. 1.33 Over recont years, HOC has embarked on two important activities aimed to Improve highway planning and investment decisions: (a) a Road Data Bank IRDB) which would contain all important road infor- mation at the national, provincial and county level, with a view to provide the bais for improving the economic rationale for decisions on expansion, rehabilitation, strengthening and maintenance of the road networks. The HOC Beijing Highway Planning and Design Insti- tute (HPDI) has prepared a standard format for the data to be input in the data bank and is setting guidelines for the provinces so that a uniform and fully integrated nationwide system can be established; .-A (b) a Pavement Hanamement System (VHS), to Improve decision-making regarding pavement design and maintenance, and their economically appropriate standards, including optimal timing. The HOC Beijing Highway Scientific Research Institute (HSRI) has taken the lead in this work, investigating alternative PHS systems available in the Western nations and adapting them to Chinese needs. 1.34 After several years of teoting alternative systems, HOC has now developed a standard PMS/RDB system which they plan to Implement in several provinces, starting with those already receiving, or about to receive, assis- tance under Bank-financed highway projects Including Shandong, Shaanxl, Jiangxi, Sichuan, Jiangsu, Zhejiang, Henan and Guangdong. Bank assistance to the RDB/PHS program in China started with the Highway I Project (Loan 2539- CMA/Credit 1194-CRA) and has been a feature of all Bank-financed highway proj- ects since then. 1.35 In addition to its role In planning and financing, HOC serves an important function as coordinator for the construction of priority sections of the national highway notwork; in early 1990, HOC established a Technical Coor- dinating Unit (TCU) to maintain close contact with the provinces executing projects financed by the World Bank or other external financiers. TCU's main focue ha been to provide guidance to the project executing agencies and to - 12 - coordinate staff training and the development of the RDB and PMS at the pro- vincial level. 1.36 In summary, despite government efforts to improve the highway system and its utilization and administration, much more is needed to modernize the system and allow it to effectively meet the increasing demands placed on road transport, both in improving physical capacity and the management of the sec- tor. The key areas on which the government should focus attention ror improvement through institutional reforms and training are: (a) cost recovery and financing, to provide the necessary resources to meet increasing financing needs for maintenance and operations and encourage an efficient use of the highway system; (b) highway planning and investment strategies, to better identify short- and long-term highway development priorities; (c) role of the HOC, to adapt it to be consistent with the rapid admin- istrative decentralization taking place in the management and finance of highway development and maintenance, and strengthen its capacities in the reformed mandate; (d) preparation of feasibility studies using modern highway analytical techniques, and based on data and relationships reflecting condi- tions on China's highways; (e) operations of the road user services industry, both freight and passengers, to reduce costs and improve quality of services, through promotion of competition, modern technology and better management; and (f) the road construction industry, to improve management, understanding and application of contract conditions, modernize equipment, and clarify client, contractor and supervision relationships. The Bank's Experience and Strateat in Highwa_s 1.37 Of the seven Bank-financed highway projects (para. 1.15) only the first Highway Project has been completed. The project, which was designed to construct and Improve 66 segments of the national (7 segments) and the provin- cial/county road networks in nine provinces achieved its original objectives and clearly demonstrated the benefits accruing from improved accessibility to communities deprived of adequate transport infrastructure in economically less developed regions. Economic activity i1 the area of influence of most project roads surged and income levels increased noticeably. Furthermore, the Bank's involvement facilitated the acceptance of competition in the contracting for road works, in preference to force account operations, even for smaller civil works contracts, as well as the merits of supervision of construction by spe- cially assigned units. 1.38 Highways together with port projects constitute the Bank's first major involvement with large civil works in China. As could be expected, introduction of international competitive bidding (ICB) has been difficult, _ 13 - particularly as each project involves a new implementing agency. Despite these difficulties, which have led to most civil work components in highways projects being behind appraisal schedule, much progress has been achieved and the concept of competitive bidding is now generally accepted. These projects have allowed to gain an understanding of the weaknesses in the capacity and experience of the local contracting industry and, similarly, of the executing agencies in contract administration. These lessons are being used in the preparation of new projects addressing these issues, particularly strengthen- ing prequalification of contractors to avoid selection of unqualified contrac- tors and strengthening arrangements for construction supervision. The Bank's involvement has assisted the line ministry and the provincee' transport departments to develop greater awareness of the need for systematic planning through the development of the RDB and PMS; the Bank has also helped in the transfer of technology through the supply of equipment for road research and road maintenance and through broad basei training programs covering highway technology and advanced management practices. 1.39 The Bank's strategv for future hiahwav lendins is to continue to support institutional development and sectoral reforms aimed at the moderniza- tion of the highway system and its management. Preparation of a Highway Stra- tegy Paper is planned as part of the formal sector work program for FY93 which will consolidate these efforts and serve as a basis for the continuing dia- logue with MOC. An institutional strengthening project is also in preparation with a significant component to assist MOC (para. 1.19). 1.40 While some institutional and sector components such as staff train- ing and safety (when administrative barriers can be overcome) will normally be included in every project, specific issies such as road financing, the effi- ciency and quality of road freight and passenger services, the construction industry and other issues identified during the Bank's dialogue with GOC, will be addressed selectively in individual provincial projects through studies, pilot reforms or other actions, with a view to formulating recommendations that may also serve other provinces. During the next three to five years, the projects' investment components will continue to focus on high priority links of the national highway system, and to support the development of the provin- cial road networks. The strategy also envisages continued close collaboration with MOC, assisting it through economic and sector studies and through lending operations, to adapt to the evolving needs of the Chinese economy. 1.41 Specifically, the Bank's strategy for forthcoming highway projects comprises addressing the foll-wing issuess (a) Issues to be addressed in all highwav prolects (i) sound management of the existing highway network, including adequate provision for rehabilitation and maintenance, priori- tized according to economic analysis; (ii) development of high standard, limited-access highways in spe- cific corridors of proven high demand and inadequate existing capacity; - 14 - (iii) satisfactory compliance with onvirormental and resettlement requirements; and (iv) promotion of road safety. (b) Issues to be addressed in o2cific ,rovinclal hiLav orolect (i) identification of a structure for adequate road user charges in order to mobilize the necessary resources for road development and equitably recover from users the costs of the highway sys- tem. A study would be conducted under this proposed highway project in Guangdong Province, building on the work already undertaken by HOC with Bank as6istance on the "Road Punding Study" (under Loan 2811-CHA/Credit 1792-CiA); (ii) promotion of adequate road freight services, including encour- agement to private, collective and township enterprises to enter the business as part of the reform of the transport sect tor. A study at the provincial level would be carried out under tba proposed Henan Provincial Highway Project, end a complement;.iy study of trucking at the national level would be conducted under the Beak's transport sector program; (iii) a study would be conducted under the proposed highway project in Fujian Province regarding the need to upgrade the capacity and effectiveness of the highway construction Industry. This study would be followed by a pilot program under the project for the provincial construction industry; and (iv) integration of road transport serviess with other modes, par- ticularly in the field of containerization, and the establish- ment of modern, integrated multimodal services. Selection of a highway project addressing this is still to be determined. _ 15 - It. GUANGDONG PROVINCE TRANSPORT SECTOR A. Situation and Economy 2.1 GP is located on the South China Sea at the southeastern corner of the People'a Republic of China (see Map IBRD 23927). The Province covers an area of 178,000 kma, excluding the many small islands along the rugged 3,370 km coast line. More than three fourths of the total land area is mountainous or hilly; the only extensive plain areas are located in the central Pearl River Delta and the region around the eastern port uity of Shantou. Long- distance transport is obstructed by mountain ranges: the Nanling Mountains in the north, the Yunkaida Mountains in the west, and the Lianhua Mountains in, the east. Most of GP has a subtropical climate with tropical monsoons. Dur- ing the rainy season between April and September, floods and typhoons can often disrupt ports and interfere with land transport and coastal shipping activities. 2.2 The province has a population of 63 million and is currently enjoy- ing a period of extremely rapid economic growth. While Guangdong lacks raw materials and energy sources, its proximity to Hong Kong, entrepreneurial propensities, and extensive ties with overseas Chinese, combined with having three of the five Special Economic Zones (SEZ) of Southern China--Shenzheni Zhuhai and Shantou--have placed Guangdong at the cutting edge of the national export-led development strategy, enabling it to supplant Shanghai as China's leading export center. Annual growth in Gross Output Value of Agriculture and Industry (GCOVAI) has averaged nearly 20 percent per year since 1980, and recent data indicate no slackening in this pace (Table 2.1). However, the growth has not been evenly distributed: the central Pearl River Delta has benefited most and the more remote eastern, western and inland regions have gainest much less (Figure 2.1). One of the objectives of this project is to improve access to these less developed regions. Overall, Guangdong ranks as the third richest province in China in terms of per capita GOVAI after Jiangsu and Zhejiang but no other province has such concentrations of wealth as found in the Pearl River Delta. 2.3 Rapid development has led to an increasingly taut situation in the transport and energy sectors. To address transport issues in a systematic mannar, and to assess the relative priorities of competing demands, the Bank collaborated with the Beijing Institute of Comprehensive Transport and the Guangdong Provincial Planning Commission in a Comprehensive Transport Study (GPCTS) J/ issued in June 1991. A major conclusion from the CTS was that there had been relatively limited exploitation in China of the two most impor- tant 20th century innovations in transportation technology: mi-dern highway and aviation systems. In particular, CTS recommended that the ro-e of the highway sector must expand in order to satisfy the burgeoning demand for faster, more flexible transport stemming from the growth of exports and light industry, and associated with rising incomes. 1/ Guangdong Province Comprehensive Transpo-t Study, Transportation Divi- sion, Country Department III, Asia Regional Office, World Bank, June 7, 1991. - 16 - Figure 2.1s DISTRIBUTION OF PER CAPITA GOVIA BY COUNTY, 1990 GOVIA: Gross Output Value of Industry and Agriculture, 1980 Prices (I99. prices approximately - 1080 prices x 1.S2) GOVIA per Capita (Yuan) L 385 to 1000 5000 to 40000 1000 to 3000 F] Missing * 3000 to 5000 B. TransRort Network 2.4 GP is served by railways, highways, coastal shipping routes, inland waterways, civil aviation, and a pipeline. loads and inland waterways are the principal modes for short-haul transport, and railways and coastal shipping are the principal modes for interprovincial transport. Statistics on the networks of highways, railways and inland waterways are shown in Table 2.2. 2.5 The Guangdong railway network is relatively limited compared to that of other provinces. The five main lines connect the ports of Huangpu, Guangzhou and Z1gnjiang with the rest of the country, and alos serve As an export link to Hong Kong. There are nine local lines, but the only one of any significance is the Meilong Railway in the East which was built in 1971 to serve a coal mine but now carries general freight and passengers. The rail network continues to expand, with double tracking and electrification of the Guangzhou-Shenzhen and Henyang-Guangzhou lines, and the planned construction of the Guangzhou-Meizhou-Shantou lines with Asian Development Bank assistance. 2.6 Coastal shignina benefits from the access provided by the long coastline and Pearl River 2.50 >2.50 >2.25 >2.00 >2.50 >2.00 mdnimum 2.25 1.75 1.50 2.25 1.50 soft >0.75 >0.75 >0.50 >0.50 >0.75 >0.50 1.50 0.75 1.50 0.75 0.75 0.75 0.5-1.5 0.5-1.5 MEDIAN WIDTH (M) standard 3.00 2.00 1.50 1.50 2.00 1.50 minimum 2.00 1.50 1.50 Source: "Gonglu Gonacheng Jishu Diaozhun', (Highway Engineering Technical Standardas) 1983 Hiniatry of Coumznications. _ 64 - CHINA GUANGDONG PROVINCL'L HIGHWAY PROJECT Chiuas Civilian Motor Vehicles (thousand) PASSENGER VEHICLES TOTAL ------------------------- MOTOR NMOTOR Large Sma1. S Total TRUCKS VEHICLES TRAILERS TRACTORS CYCLES OTHER 1978 88 171 259 1,099 1,358 104 126 1980 130 275 406 1,585 1,991 168 245 1985 795 2,416 3,211 338 1,784 946 1986 966 2,654 3,620 344 2,288 1,483 1987 274 841 1,115 2,966 4,081 426 3,747 2,478 305 1988 299 1,004 1,304 3,340 4,644 447 3,916 3,024 318 1989 312 1,152 1,464 3,649 5,113 475 4,104 3,593 375 1990 333 1,289 ',622 3,892 5,514 499 4,626 4,213 411 Annual Growth Rates: 78-85/87 132 19S 172 12S 13S 18X 33Z 85-87 182 II% 13K 12S 452 62Z 87-90 72 152 132 92 1i1 52 72 19K llS Proportion of individually owneds 1985 22 i11 1990 12 152 SOURCE: Chia Statlstical Yearbook, 1991, p. 512. - 65 - Table 1.9 CHINA. GUANGDONG PROVINCIAL HIGHWAY PROJECT China: Highway Freight Transport FREIGHT TONS FREIGHT TON-KMS AVERAGE HAUL (KMS) -------------------- -------------------- -------------------- Public Other Total Public Other Total Public Other Total (mile) (bils) 1979 816 2,894 3,710 27 48 75 33 16 20 1980 760 3,060 3,820 26 51 76 34 17 20 1981 715 2,922 3,637 25 53 78 35 18 21 1982 788 3,004 3,792 30 65 95 38 22 25 1983 791 3,223 4,014 34 75 108 42 23 27 1984 789 4,545 5,334 35 118 154 45 26 29 1985 762 4,619 5,381 35 134 169 46 29 31 1986 785 5,416 6,201 37 175 212 47 32 34 1987 791 6,323 7,114 39 227 266 49 36 37 1988 765 6,558 7,323 42 280 322 55 43 44 1989 697 6,640 7,337 41 297 338 58 45 46 1990 647 6,593 7,240 36 300 336 56 45 46 Average annual growth: 79-84 -1% 9% 8% 6Z 20% 16% 84-90 -3% 6% 5% 0% 17% 14% Split 1979 22% 782 1002 36% 64% 100% 1990 9% 91Z 1002 11Z 89% 100Z SOURCE: China Statistical Yearbook, 1991, p. 498. Public - Trucks operated by trucking companies affiliated to, or owned by, the Provincial Transportation Departments. Other - Trucks operated by other enterprises or by private individuals. -66- Tab le 2.1 CHINA GUANGDONG PROVINCIAL HIGHWAY PROJECT Economic Data (1990 prices) 1990 GOVAI GROWTH POPU- GOVAI PER CAPITA GOVAI GOVAI in 1990 pri Annual Annual LATION tines -------------- Growth Growth (mile) (Y bile) (Y) Nat av 1987 1991 (1) 87-91 90-91 CHINA TOTAL 1,143.3 3,158.7 2,763 1.0 GUANGDONG PROVINCE 62.6 250.4 4,003 1.4 146.6 300.3 19.62 19.92 Pearl River Delta 12.4 127.4 10,281 3.7 70.9 159.6 22.52 25.32 Guangzhou 5.9 48.6 8,187 3.0 33.2 60.1 16.0S 23.62 Foshan 2.8 31.1 11,143 4.0 17.7 38.3 21.32 23.12 Zhongshan 1.2 9.7 8,435 3.1 4.9 11.7 24.32 20.72 Dougguan 1.3 10.6 8,030 2.9 5.7 9.7 14.22 -8.72 Shenshea 0.7 20.9 30,290 11.0 7.4 28.3 39.82 35.32 Zhuhai 0.5 6.5 12,920 4.7 2.1 11.5 53.52 78.32 East Coastal Region 14.8 32.6 2,197 0.8 17.6 36.5 20.02 12.02 Huisho, 2.3 6.6 2,925 1.1 3.1 9.6 33.12 45.62 Shauwdu 2.3 2.6 1,137 0.4 } Shantou 9.0 19.2 2,142 0.8 ) 14.5 26.8 16.62 3.42 Chaozhou 1.3 4.2 3,135 1.1 ) West Coastal Region 16.5 51.4 3,127 1.1 31.1 59.8 17.71 16.22 Jiang en 3.5 20.1 5,680 2.1 11.1 23.6 20.72 17.92 Yangjiang 2.3 4.5 2,013 0.7 3.1 5.6 15.72 23.52 Muming 5.2 12.4 2,378 0.9 8.4 13.3 12.12 7.42 Zhanjiang 5.5 14.5 2,650 1.0 8.5 17.2 19.42 19.02 Inland Region 18.9 39.0 2,065 0.7 26.9 44.5 13.42 14.12 Meashou 4.4 6.4 1,432 0.5 4.1 7.3 15.42 15.02 Heyuan 2.8 2.8 1,011 0.4 2.0 3.1 11.22 9.62 Raoguaag 2.6 8.7 3,115 1.1 6.9 10.5 11.22 20.52 Qinayua 3.4 5.7 1,678 0.6 4.3 5.9 7.82 3.62 Zhaoqln 5.5 15.5 2,807 1.0 9.6 17.8 16.72 14.72 OTHER Pm OVhlCESt Sichuan Province 108.0 186.0 1,722 0.6 Jiangxi Province 38.1 68.1 1,787 0.6 Shaannx Province 33.2 61.3 1,847 0.7 tinjiang Aut.Reg. 15.3 36.5 2,385 0.9 Shandong Province 84.9 284.9 3,355 1.2 Zhejiang Province 42.3 176.9 4,182 1.5 Jiangsu Province 67.7 334.5 4,943 1.8 NOTE: GOVAI a Gross Output Value of Agriculture and Industry (1) Eotimated based on the Governor's annual report SOURCESt China Statietical Yearbook, 1991 Guangdong Statistical Yearbook, 1991 Guangdong Proviancal Comunication Department cum GUA_CNG PROVINIAL IGMICAT PROJECT Goaagdong: Degraphic and Transport Network Data, 1990 TRANPORT NETOISSLEG NTI30RK LEWIG= TTAL G # Or * O ofvim _____________,,__------- --------------------------- Or PER P POPUIATION Road Rail Water Road Rail Water VECICES 2305POPEM ROAD (million) ('000 sq ha) ('000 1CM) (mO/'OO sq in) ('000) CIIU TOTL 1,143.3 9,600.0 1028.3 53.4 109.2 107.1 S.6 31.4 5514 4.8 5.4 SUANOIM PROVIE 62.5 177.9 54.7 0.68 10.86 307.5 3.8 61.0 402 6.4 7.3 s9ohua Provim 108.0 560.0 97.2 2.88 7.90 173.6 S.1 14.1 310 2.9 3.2 Jl agzi Province 38.1 160.0 33.2 1.58 4.90 207.5 9.9 30.6 110 2.9 3.3 0 Sbaan i Prowlnee 33.2 190.0 38.0 1.85 0.77 200.0 9.7 4.1 140 4.2 3.7 Zinjing Aut. Reg. 15.3 1,200.0 25.4 1.34 0.00 21.2 1.1 0.0 130 8.5 5.1 Sbangdong Province 84.9 150.0 40.8 2.04 1.84 272.0 13.6 12.3 373 4.4 9.1 Zhejiang Provlnce 42.3 101.8 30.2 0.83 10.62 296.7 8.2 104.3 154 3.6 5.1 Jiangsu Proviuce 67.7 100.0 24.8 0.75 23.67 248.0 7.5 236.7 277 4.1 11.2 Source: China Statistical Yearbook, 1991 -68 - CHINA GUANGDONG PRO\INCIAL HIGHWAY PROJECT Gunngdong: Road Network, 1985-1991 1. The Entire Network 1981 1985 1991 nlasification Length Proportion Length Proportion Length Proportion Expresaway 23 0.04 Class 1 210 0.38 Class 2 78 0.16 490 0.96 2,154 3.89 Class 3 694 1.39 1,307 2.55 3,947 7.14 Class 4 27,225 54.58 29,220 56.97 32,733 59.18 Unclsssified 21,882 43.87 20,271 39.52 16,240 29.36 Total 49,879 100.00 51,288 100.00 55,307 100.00 2. Provincially Maintained Road Network (1991) /a Type of Pavement ------------------------------------ Proportion to Bituminous Cement Gravel Classification Lengh% The Network Surface Concrete Surface (kn) (percent) Pavement Expressway 23.0 0.13 -- 23.0 -- Class 1 215.0 1.19 35.0 180.0 -- Class 2 1,965.0 10.91 1,490.0 475.0 -- Class 3 3,302.0 18.33 2,782.0 520.0 -- Class 4 8,131.0 45.13 3,680.0 518.0 3,933.0 Unclassified 4,379.0 24.31 155.0 247.0 3,977.0 Total 18,015 100.00 8,142 1,963 7,910 /_a the part of the network vhich are maintained vith provincial fund. Sources: Highway Administration Bureau, Guangdong Provincial Communication Department. - 69 - Table 2.4 CHIN CUAJODOVO PROVINCIAL HIGHWAY PROJECT reight and P"Senger Traffic, 1985-1990 TONS TRANSPORTED TON-KILOMETERS AVERAGE HAUL DISTANCE Inland & Inland & Inland & coastal coastal coastal Htihwya Railway. waterway Highways Railways watenways Highwaye Railwaye waternays (oilllone) (millions) (kilometere) 1985 226.1 34.4 134.4 6,692 11,290 87,646 29.6 327.8 651.9 1986 260.8 38.5 147.1 8,313 12,781 97,491 31.9 331.6 662.6 1987 283.0 40.6 172.4 9,175 14,019 114,838 32.4 345.7 666.1 1988 304.1 45.0 200.4 10,117 15,155 127,967 33.3 336.5 638.5 1989 320.4 48.9 216.3 10,998 16,339 158,037 34.3 344.5 730.8 1990 336.9 48.0 224.8 11,873 17,953 167,578 35.2 373.8 745.6 Average AnnuAl Growth (2) 8.3Y 6.92 10.82 12.22 9.7Z 13.82 3.6Z 2.72 2.72 PASSENGERS PASSENGER-KILOMETERS AVERAGE TRAVEL DISTANCE ____.___________________________.....__._._. ________________- -- - -- - -- - -- --- - --- -- - -- - -- - -- - -- - Inland & Inland &Innd coastal coastal coastal Highways Railways waterway Highways Railways WaterWays Highways Railways waterways (millions) (millions) (kilometars) 1986 468.4 35.3 29.4 14,459 5,257 2,160 30.9 148.8 73.5 1986 473.6 36.4 28.1 16,774 5,609 2,110 35.4 154.0 75.2 1987 504.0 40.3 29.6 19,689 6,630 2,287 39.1 164.6 77.2 1988 557.2 48.3 30.3 25,374 8,178 2,467 45.5 169.4 81.4 1989 590.5 48.8 29.6 27,621 8,438 2,416 46.8 172.8 81.7 1990 642.9 44.7 26.5 28,752 8,257 2,311 44.7 184.8 87.2 Average Annual Growth (2) 6.52 4.82 -2.12 14.7S 9.52 1.42 7.72 4.42 3.5Z SOURCEs Cuangdong Provincial Communications Department. cim GUANGD0NG IUOVICM BloW P3ECT Guaggdung: Length of Highway by ADT. National Roods only MLieage for Mlxed Traffic (ku) Motor Vehicle Traffic Only (km) Mileage under 7,000 - 2,000 - 200 - 5,000 - 2,000 - 200 - observation >10.000 10.000 7,000 2,000 <200 >10,0O0 10,000 5,000 2,000 Z200 (km) ADT ADT ADT ADT ADT ADT ADT ADT ADT ADT 1986 3,937 220 1,329 1,853 535 0 63 389 1,821 1,629 35 1987 3,932 702 1,505 1,255 470 0 217 992 1,595 1.120 0 1988 3.916 1,032 1.375 1,250 259 0 216 1,500 1,640 560 0 a 1989 4,048 1,307 1,293 1,080 345 0 792 1,323 1,280 630 0 o 1990 4,048 1,277 1,499 1,001 271 0 955 1,550 1066 477 0 1991 4,046 1,548 1,293 970 237 0 1.366 1,062 1,145 455 0 Source: Date Copiletio of Guangdong Higihay Traffic Counting Survey (BAD under GPCD). - 71. - Table 2.6 GUANCG PROVINCIAL HIGHWAY PROJECT Vehicle Fleet, 1986-1991 Special Trucks Buses purpose Year (1) (2) cars Tractors vehbcles Motorcycles Total 1986 111,445 17,827 120,305 284,494 4,551 306,628 845,250 1987 119,064 19,227 133,476 304,127 4,861 37S,513 956,268 1988 133,056 22,344 168,795 309,871 4,500 (3) 492,231 1,130,817 1989 147,865 24,860 193,780 343,026 4,052 640,155 1,353,738 1990 152,804 26,294 222,988 357,022 4,335 797,538 1,560,981 1991 174,516 29,400 272,254 476,170 4,600 (3) 1,043,777 2,000,717 Anual grawth rate (S) 1986-1991 9.4Z 10.52 17.7Z 10.92 0.22 27.8: 18.82 (1) Over 7 ton capacity (2) Over 25-seat capacity (3) Not available, data presented here reflect mission's estination Source: Guanadong Provincial Communication Department: Transportation Statistical data of Guangdong - 72 - Table _.7 CHI" GUANGDONG PROVINCIAL HIGHWAY PROJECT Guangdongs Freight Handled by Public and Social Trucks (billion ton-kmn) Annual tonnage (millions) Annual ton-kce (billions) Avg distance (kn) Public Social Public Social Public Social Year truck tuck Total truck truck Total truck truck 1985 19.47 206.66 226.13 0.554 6.138 6.69 28.45 29.70 1986 19.58 241.24 260.82 0.569 7.744 8.31 29.06 32.10 1987 19.75 263.20 282.95 0.595 8.580 9.18 30.13 32.60 1288 20.54 283.54 304.08 0.656 9.461 10.12 31.94 33.37 1989 17.73 302.70 320.43 0.636 10.362 11.00 35.87 34.23 1990 16.90 319.97 336.87 0.612 11.261 11.87 36.21 35.19 1991 18.56 336.70 355.26 0.712 12.020 12.73 38.36 35.70 Annual growth: 85-91 -0.82 8.5.. 7.82 4.32 11.92 11.32 5.12 3.12 Sourest Guangdong Provincial Communication Department. - 73 - Table 2.8 CHINAf GUANGDONG PROVINCIAL HIGHWAY PROJECT Cuangdongs Road Safety Number Number Number of of of Person Year Accident Fatalities Injuried 1985 14,676 1,984 9,316 1986 22,642 2,773 13,484 1987 25,665 3,594 16,172 1988 23,993 3,640 14,635 1989 24,229 3,478 15,133 1990 25,909 3,639 14,875 1991 30,326 4,429 16,979 Sauces Guantgdong Provincial Communication Department. cuIm& CUAUODOQr PROVINCIAL HIGOLU PROJECT Highway Finances 1980 1981 1982 1983 1984 1985 1986 3987 1988 1989 1990 TOTAL Road Mlateance Fee 145.6 10.1 174.6 205.2 412.2 450.9 789.9 936.6 1,181.1 1,411.5 1,537.0 7,405 xpressway tolls 5.8 21.9 28 Other road and bridge tolls -- -- -- 5.0 15.0 22.5 38.1 66.0 85.9 109.0 341 Passnger tariff surchare -- -- -- -- - 100.0 135.0 166.0 207.0 269.0 877 Donationsllocl contributions 80.0 100.0 110.0 190.0 290.0 300.0 350.0 405.0 400.0 430.0 450.0 3,105 Provincial grant 2.5 0.5 0.5 0.5 2.7 4.5 3.0 1.8 0.5 0.5 0.5 17 HOC grant 1.9 -- -- -- 13.5 16.5 59.0 59.5 55.0 88.0 76.3 370 Domaestic Loans 10.0 30.0 50.0 205.0 210.0 200.0 250.0 255.0 150.0 140.0 150.0 1,650 __ ........-...---- __-----..-...--__---- __------.... ____-____ .....---...-----____-____-___--.. ------.... ------ _ . __....---... 240.1 290.6 335.1 600.7 933.3 986.9 1,5/4.4 1,830.9 2,018.6 2,368.6 2,613.7 13,793 UIPZNDIIRES ....................._ Construction and Upgrading: Expresewvy constuction -- -- -- -- -- -- 30.0 100.0 120.0 205.0 106.0 561 Bridge construction 5.0 25.0 50.0 105.0 160.0 180.0 185.0 190.0 180.0 110.0 60.0 1,250 Uban access and local roads 92.0 120.0 130.0 290.0 310.0 350.0 418.0 50'.0 557.0 600.0 933.0 4,301 Other 27.6 30.5 39.8 40.8 113.1 66.6 384.9 517.1 572.1 799.2 664.4 3,256 Maintenane:r Routine 63.3 79.0 86.8 127.4 237.0 164.1 274.1 219.0 223.0 256.6 268.3 1,999 Periodl 11.8 13.3 17.1 11.3 40.2 66.1 71.4 9S.5 76.0 90.9 119.4 616 loan repayments -- 10.0 20.0 30.0 100.0 120.0 100.0 12.0 125.0 100.0 120.0 845 Overhead and other 44.9 37.8 41.1 42.3 37.4 175.7 169.9 172.4 213.9 421.3 360.6 1,717 Total expenditures 244.6 315.6 384.8 646.7 997.7 1,122.5 1,633.3 1,918.0 2,067.1 2,582.9 2,631.7 14,544.8 SOURCE: Guangdong Provincial Conmmucatione Department - 75 - Table 2.10 GUANCDONG MZOVINCIAL HIGHWAY PROJECT Cuangdongs Fuel Prie. (Yuan per liter) Defore Mareb 20, 1980 Alter August 20, 1984 Current (march 1991) . . . . . . . . . ..... ..__ __ _. _ _ _ _ _.. __... ____......._._ _. .. ---------------------- I_* nowt:- 1egoti1 eSgoti- Int'l Plan d ated lb rket Planned ated l_b Market Planned ated /lb Market price /f (70 oct) |c 0.60 - - 0.60 0.96 1.11 0.70 1.47 .A. 0.57 lndex 100 100 1'; 183 116 243 Gasolie (90 oct) / c 0.65 -- -- 0.65 0.99 1.14 0.77 1.60 1.70 0.65 tnt 3 100 100 153 176 119 247 262 Diesel I t 0.51 -- -- 0.51 0.97 1.06 0.65 k.61 1.72 0.57 indzi 100 100 192 210 128 318 340 Inflation I.a indai--------…-----100-------- -----------129--------- ----------184---------- a a Planed allocation prce. Pb Negotiated above quota. ac Prices of gasolLne Include an aggregate ut 43 percent ceAtral government fuel taxes. rd Prices of di6sel include a 13 percent central government fuel taxes. re Consumer price index at end-of-yeat- 1983, 1987 and 1990 respectively i Average wholesale price, for regular/premium unleaded gasoline and No 2 diesel fuel, 103 refirleso, pipeline terminals and inland waterway barge termnanla (March 30, 1992, New Jerse Souces Guaagdong Provincial Conualcation Department. - 76 - CHINA GUANGDONG PROVINCIAL HIHWWAY PROJECT Planed Highway Development in SFYP Road Type Length gEt Cost (km) (Y nil) High Class Highways Guangzhou-Shenzhen Highway 120 -- Foshan-Kaiping Highway 80 1,520 Longgang-TanDi Highway 149 1,470 gaimen-Dahoe Highway 16 179 Huizhou-Shenihen Highway 64 670 Guangzhou-Huauian Higiway 23 175 Subtotal 452 4,014 (ox G-8) National and Provincial Highway upgradingt 5,500 3,100 of which Class I 500 Class II 2,000 Class II/III 3,000 Rural penetration roads: 2,500 300 Paving gravel roados 5,000 2,200 TOTAL CONSTRUCTED AND UPGRADED 13,452 9,614 cm" 0u*31m PIMMREAL 30Ua? P2OIE? Te of traning _er od trainee Estimated Sl dawatiom Perso otba touf trdli e cog $at0m &onggPF-5 rsa- revue $'000) Nihi q i my 1. Ciwrmsv Traimim Ł. 1^tim Taats 40 pte o 0.5 25th 10 10 5 as 37 ?=J.ct usasgast G 4 Study tour for senior personel. pesnfor ta. usgwy engineering Staff at hight o d 10 perem leve, Including iterpreter. 0.5 Ilper for se"or enginers m eineer. the RIP coc.ant subtotal-lonpett io T 50 10 12 5 25 U S. Stninl Abroad 1. Project pling 4 prsos I 5 6 _ 12 t6 Planning staff at hig *W ludes project preparation, appraisal, msgm&mt umibslpereo WdIM levela cyc y , bgting. hisb4 V_nft Po@"tw-isl of ccapleted Project*. 2. Deg 3 pvroms I 6 6 12 . 1 144 Dsinrs at hibg nd Mr l= fT CAD, drd rc _ae /par*cm levels dosig, pam"et design. J. Construction 6 perme a 3 9 9 16 14 Censtructiom mangement ad Mcbenize rod cosatructio t eheui Iothslpere eninerin staff at high and sphalt pavemnts, sA preventi, SWMdln lews eamazement of r"ad construction ..e atims S pe rsoo 6 2 6 J 9 72 Enginerin staff at high sA Operation of expressways dth eobasi - aamstrstbo nthelperei. mediu, Levels to be responsiole toll facilities, mnitoring and for operations edminiatratio telecaniostin epst and as of c omputers in thsse fields. S. t 2 peocn f 3 9 5 - 6 48 namet ad 4nieri Incldes slectio of mateane mouthalpere" Staff In matnance agecies equipmsnt, mintenace of asplt and coner te pavnaont. MIRID. S. inacil s&fare 2 pers 5 I * 6 4- Staff in finncial _magement Iccldas loan, accunting for bhizbms. montbalpsrtca financial ed accinting reports, auditit and financial analyses. subotal-Training Abre 20 Lo d6 552 PIF goa - 78 - Table 3.1 1 1g iii! j *~ ' ff 5 a ;' " $1 .4. X U' f 1!] ~ ~~~ o Io I IoI II oi i 44 w Me of t tlaus mer of tnal.s t tiatet ga duAration Parm ataof traln!W& Ta Moet fcqtm a nI. bu,waIaa Tr A. ,pnke Q r. - la) _r I IN I as a 1.6 193 i . Iso staff at atism cad Ia l}ae S cI... -U (b) 0ral 2ra o . I I2 14 - .0 16 S.aLor.qarVer. llsaI Ic treat s et, nmc c (ci agem S 8 Pocono S S 6 4 affIc auerhs Łuprntar I la.. tic" of easrt. ,t mos- scowlp.rsen F t. coostanetic amaga- I _ nuiauatl.r, brIde Use i. 11a oom.at I ag-.mt rowd ad prmato I __nU (a) _r 1 85pr 1 I * * 55 5 1p ap-r, aiaeta ughmrs. I etla. (bGrow_ 2 50 e 1.5 is . is 7 Cslamersm aSait6a .rgia.ra I lole J 3. Dm.at tradnwe 45 pr_eu I 14.13 27.5 20 12.s so 120 tbi ubtftal-4 S Tr .1 fj s24 0 4 1. . 2 pr 1 1 1 a 2 24 Salor muparcgea 2. t 2 48 pVrnon I1 2 16 t0 46 304 Sanlar ,aAmnr.. ag1nara m.utblp.raan Subtotal-wain% Abrod 2 16 1 0 4e 406 Tatal-S,aIec frali S7 3440 J3fl > 756 OR= fIul-23*I3 NllM M36 248 162.5 77.5 I.a23 1(trninta m to. SS2 otal Coat 2.035 00 a .~ ~ ~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. rO a -80 - T *blo 3ZR UgMIQDO RPON I GE(a PRORC PoetCost StMIna (arch 1992 prices) (81.00 - y 5.45) Local Foreign Total Loca lForeign Total Poreig - Y million) -- ---- (S million) ---- cost CU A. Wbrks (a) Foshan-Kalping Highway (i) Civll works 692.00 498.00 1,190.00 126.97 91.38 218.35 42 (ii) ESE supply and installatiou 15.00 35.00 5O;00 2.75 6.42 9.17 70 (b) Louggang-Tanri Highway Ci) Civil works 760.00 549.00 1,309.00 139.45 100.73 240.18 42 (ii) R&I supply and Installation 6.00 15.00 21.00 1.10 2.75 3.85 71 (c) Road Improvement Program 358.53 168.72 527.25 65.79 30.96 96.75 32 (d) Road Safety Pilot Program 1.36 0.82 2.18 0.25 0.15 0.40 38 Subtotal 1.832.89 1.266.54 3.099.43 336.31 232.39 568.70 41 B. Sunervislon of Constructlon (a) loshan-Kalping Highway 15.44 9.27 24.71 2.83 1.70 4.53 38 (b) Loanggang-Tawri Highway 20.83 10.57 31.40 3.82 1.94 5.76 34 (c) Road Improvemet Program 6.25 0.00 6.25 1.15 0.00 1.15 0 Subtotal 42.52 19.84 62.36 1L. 3.64 11.44 l C. Eanulment Ca) losban.-alplnglL.nggang-Tanzi Mi) Supervision/laboratories 0.53 4.80 5.33 0.10 0.88 0.98 90 Cii) Operation and maintenance 2.60 39.95 42.55 0.47 7.33 7.80 94 Ciii) Environmental/research 1.99 5.32 7.39 0.37 0.99 1.36 73 (b) Road Improvemeut Program Ci) Supervision 0.24 3.76 4.00 0.04 0.69 0.73 94 (ii) Provincial road maintenance 0.00 12.15 12.15 0.00 2.23 2.23 100 Mill) PYS/RDB 0.43 2.89 3.32 0.08 0.53 0.61 87 (c) Road Safety Pilot Program 0.00 0.38 0.38 0.00 0.07 0.07 100 Subtotal 1fl 69.3 75. 1.06 12.72 13.78 92 D. Staff Tralai_naTechRLcal Asslstance (a) General training 0.70 6.38 7.08 0.13 1.17 1.30 90 (b) Supervision trainaig 1.86 2.23 4.09 0.34 0.41 0.75 55 (e) Hlghway financing technical asesitace 0.37 0.33 0.70 0.07 0.06 0.13 47 Subtotal 2.9 8.94 11.87 0.54 1I. 241, 1 Base cost 1.884.13 1.364.64 3.248.77 345.71 250.39 5L9.10 Physical contingency /a 187.54 128.64 316.18 34.41 23.60 58.01 41 Price contingency Lb 357.07 141.87 498.94 65.52 26.04 91.56 28 Bae cost with contlAgency .4L2J. 1.6)5.15 i. -a 445.64 300.03 745.67 it S. Land Acmuieltion and Rea*_jem 269.55 0.00 269.55 49.46 0.00 49.46 0 Total oso1eet cost LS 3jS92 1.635.15 4.333.44 492.10 300.03 795.13 Al / Ten percent of iteum A and B. Price contingency for local and foreign cosats 142 end 6X2 repectively, for items A(c) and ACd)g 16X and 102, respectively, for the remaining Ltems. La Identifiable tazes and duties are about Y 81 million. -81 - Table 3.3 CHINA GUANGDONG PROVIMCIAL HIGHWAY PROJECT Estimated Disbursement Schedule ($ million) Disbursement profile of transport Estimated disbursements projects Bank fiscal year and semester Semester Cumulative x in China (Z) 1993 June 30, 1993 24 24ta 10 0 1994 December 31, 1993 10 34 14 6 June 30, 1994 14 48 20 11 1995 December 31, 1994 17 65 27 16 June 30, 1995 21 86 36 26 1996 December 31, 1995 20 106 44 38 June 30, 1996 24 130 54 48 1997 Deceaber 31, 1996 26 156 65 60 Js%1e 30, 1997 26 182 76 69 1998 December 31, 1997 27 209 87 70 June 30, 1998 19 228 95 76 1999 December 31, 1998 6 234 98 98 June 30, 1999 6 240 100 100 Notet Project Completion Date: June 30, 1998. Loan/Cre.dit Closing Date: June 30, 1999. La Including payment of $12.0 million into Special Account, and advance payments to contractors. Sourcet Mission's estimate. cffo GUANGDONG PROVINCIAL HIGMWAT PROJECT Recent Traffic Growth on the Existiag Fosbon-Baiping Road Station: Nanbal klhua ShaplB Shuikoa County: Shivan Shunde Heshan aipilg Section: Foshan City Foshan-Beshan neshan weshan-Kaiping Vobs (1) Conv (2) Kix (3) Vebs (1) Conw (2) HUx (3) Vobs (1) Conv (2) Niz (3) Vebs (1) Conw (2) mix (3) 1M50 4,171 5,941 1,749 3,304 1,555 2,677 1981 5,847 7,678 2,441 4,112 1,753 3,464 1982 6,424 7,844 2,360 4,208 2,402 4,063 1983 6,518 8,214 2,630 4,494 2,262 4,450 1984 8,254 9,908 3,294 5,559 3,108 5,487 1985 12,110 14,303 5,520 9,071 4,526 7,491 1986 14,268 18,176 7,496 8,769 4,607 8,176 6,199 9,855 1987 12,228 14,550 9,350 11,002 6,498 10,289 6,692 11,600 1988 18,177 13,789 17,812 16,185 11,287 13,789 11,091 8,096 12,558 8,730 6,892 11,254 1989 (4) 20,529 14,090 16,605 11,095 13,178 10,330 14,556 7,143 11,382 1969 (4) 20,529 14,090 16,605 13,676 9,120 10,807 12,591 8,935 13,229 9,062 7,009 8,967 Os 1990 26,760 17,306 19,994 15,437 10,060 11,921 14,095 9,763 14,404 13,492 10,754 13,758 1991 31,074 19,547 22,266 19,956 13,06S 15,635 17,028 11,721 16,814 11,749 9,796 12,261 Anual Growths 80-86 22.71 20.52 17.52 16.32 25.92 24.32 86-89 14.02 14.52 30.9S 21.22 4.82 4.92 87-91 12.42 11.22 89-91 23.02 17.82 15.82 20.82 19.72 20.32 16.32 14.52 12.72 13.92 18.22 16.92 SOUBCE8s: 60a_adn PorWincial Commnications Department (1) Total motor vehicles (trucks, buses and cars). (2) Total motor vehicles converted to mdlum truck equdvaleonts. (3) Total traffic, inluding motor vehicles, tractors, bicycles and other trafflc, converted to equivalnt medium trucks. (4) There was a dlicontinuity in the counting series for saoe count stations In this yer. .1H - 83 - Cfl CUASODOS PROVIRCIAL HIOGUVY PROJECT Recent Traffic Growth on the Existing Longgang-Tanxi Road StatIosn sHudonsy Haifeng Lu? ong County$ Pingshan BaichenB EBsa section: Lonag-Balyun Houmen-Tanxi Boumen-Tanr V b. (1) Coun (2) Mix (3) Vohs (1) Conw (2) H.' (3) Vahb (1) Conw (2) lix (3) 1980 2,104 2,772 1,488 1981 4,351 3,487 1,333 1982 3,741 3,736 1,462 1983 3,473 2,906 2,105 1984 4,048 4,650 4,135 1985 4,777 5,180 499o 1986 6,939 6,937 6,537 1987 10,459 8,941 6,758 1988 9,366 8,195 11,996 7,139 6,461 8,813 9,598 1989 11,697 9,582 14,294 7,438 6,593 7,157 7,866 7,209 10,709 1990 14,498 11,527 16,537 7,327 6,684 7,870 7,509 7,030 10,420 1991 16,011 13,932 19,478 10,522 9,152 10,198 8,946 8,333 10,710 Annual Crowth: 80-91 22.42 12.62 19.7w 66-91 (4) 24.42 19.32 17.5: 13.86 12.3t 5.02 6.62 7.52 30TF 90-91 24.22 20.92 17.82 43.6: 36.9: 29.62 19.12 18.52 a. sOURcESs Guangdons Provincall Coiomcutcio Department (1) Total motor vehicles (trucks, buses and cars). (2) Total motor vehicles coaverted to mediu truck equivalent. (3) Total traffic, Including motor vehicles, tractors, bicycle. and other traffic, converted to equivalent medium trucks. (4) 89-91 for Lufong Station. CHINA GUANGDONG PROVINCIAL HIGHWAY PROJECT Traffic Counts on Longgang-Tanxi, October 16-18, 1991 (24-hour vehicles) SMALL LGE NED LARGE VEHICLES STATION VEH-MIC TRUCK CONT BUS BUS Total Convert TRACT MIXED Equiv truck factors: 0.5 1.5 2.0 1.0 1.5 1.0 1 Tongle 4,928 755 400 5,112 630 11,825 10,454 52 10,506 2 Danshui 7,638 666 316 3,222 593 12,436 9,562 1,434 10,996 3 Pishan 3,325 1,516 349 3,932 1,112 10,234 10,235 284 10,519 4 Jilong 2,802 1,383 318 3,568 1,141 9,211 9,390 425 9,816 5 Ebu 1,637 1,680 315 2,817 1,087 7,536 8,416 142 8,558 6 Hongyvan 1,817 1,522 310 3,098 1,080 7,826 8,528 491 9,019 7 Heilong 2,498 1,937 356 2,744 1,118 8,653 9,288 19433 10,721 8 Raicheng 3,642 1,180 315 3,645 1,124 9,906 9,552 562 10,115 9 Tanyang 2,241 784 288 3,589 1,312 8,215 8,431 775 9,206 10 Bomei 2,524 1,362 292 3,164 1,069 S,411 8,657 362 9,019 Average Flow 3,305 1,279 126 3,489 1,027 9,425 9,251 596 9,847 Z vehicle distribution 35.1Z 13.62 3.5Z 37.01 10.91 100.01 98.21 6.3Z 10&.SZ - 85 - CHINA GUANGDONG PROVINCIAL HIGHWAY PROJECT Guangdongt Projected Traffic on the Foshan-Kaiping Highway (thousand. of equivalent passenger car units per day) SECTIONs VaSHAN-HESH&N HESH&N-SVuIKOU NEW HIGHWAY LENGTHs (39.5 kss) (40.3 km.) YEAR: 1997 2005 2015 1997 2005 2015 Without New Highway Existing Highway 31.9 36.9 37.1 14.0 20.9 22.7 With New Highway Assuming no tolls: Existing Highway: 18. j 26.9 38.4 4.6 5.5 7.8 New Highways Diverted traffic 13.9 16.8 17.3 9.5 15.4 17.3 Generated traffic 1.4 7.4 21.2 0.9 1.5 9.4 Total New Highway 15.3 24.3 38.5 10.4 16.9 26.7 Assuming tolls: Existing Highway 18.9 28.3 40.5 6.3 8.4 12.4 New Highway 12.7 20.1 32.0 8.6 14.0 22.2 SOURCE: Gu0ngdong Provincial Communications Department and Bank estimates. NOTE: Traffic estimates for the existing highway include estimates of local traffic, and also reflect congestion-induced restrictions on traffic growth. Generated traffic on the new highway includes suppressed demand released by the new highway. - 86 - CHIN CUANODOE PROVINCIAL hIGWY PROJECT Cuangdong: Projected Traffic on the LongEsng-Tanui Highway (thousands of equivalent pasengor car unlts per day) SECT- O n LONG -GDABlUU DAIYUN-HOU=EN HOUMN-TANII mEm BIGHWAY LENCTG: (53 RMS) (47 U(S) (49 UMS) TEAR: 1997 2005 2015 1997 2005 2015 1997 2005 2015 Without No aighway Existing Highway 21.5 30.1 30,4 18.3 28.6 28.5 18.1 27.0 27.1 With nov Highway ____...___0_____. Aesuming no toll s Existing Highway: 10.5 16.9 27.3 10.3 16.3 26.2 11.0 17.1 27.2 Nev Highway: Diverted traffic 11.0 15.5 15.7 8.0 12.7 12.7 7.1 10.9 11.1 Generated traffic 1.1 4.0 15.1 0.8 1.6 9.8 0.7 1.8 8.9 Total Naw Highway 12.1 19.5 30.8 8.8 14.3 22.5 7.8 12.7 20.0 Assuming tollns ExistLng Highway 11.2 18.0 29.1 11.8 18.7 30.0 12.3 19.2 30.6 now Highway 10.1 16.2 25.6 7.3 11.9 18.7 6.5 10.5 16.6 SO RCEsa Guangdong Provlacial Comicaitons Departmnt a0 Bank estimates. MOTE: Traffic estimates for the exiting htghway includo estimates of local traffic, and also reflect congestion-induced restrictions on traffic growth. Generated traffic on the new highway includes suppressed demand released by the new highway. - 87 - Zakt416 GUANGOO PNVNCIAL a1GAY PRlonCT istimted Construction Costs of Major hlgbways Toewn-Kuiping and Longgang-Taf-z (Y .11, 1992) MOSHAN-KAXPIN HIGHWAY LO4CGAAN-TANXI HIGEWAY ..... ............. ......_.___............._.._._._.,_____.___ ..... Zieban Heshan Longgang Ialyun Boumen to to to to to COST ITES leshan Shuikou Total Baiyun 1eamen Taxi Total _.____...................._._ ....... _.___.......... __ ............. .. _ ............ -------- --------..------- _ ---------_ .... ____ . ...___ .....__.__ Civil ngirneearg Costa 907 283 1,190 402 409 498 1,309 Electrical and Mechanical 33 17 50 8 6 7 21 Construction SupervIsion 17 7 25 10 10 10 31 Laboratory testin 4 2 6 2 2 2 6 ._.__._._. -----___ .. ... _.._. --- ..... ----- Bass Coat 961 310 1,271 423 428 518 1,368 Physical Contingency (1) 96 31 126 42 43 52 136 Price Contingency (2) 154 49 203 68 69 83 220 .___ -- ----_ .. .. . ---- .._._ ----- ---- Sub-total 1,211 390 1,601 532 539 652 1,723 Land and Resettlement 92 42 133 29 28 32 Be .;.. ----- . - -- -- --- ..... ---; -- Financial Coat 1,303 431 1,734 561 567 684 1,812 Economic Coat (3) 1,399 465 1,863 600 606 730 1,936 Distribution by year: 1992 92 42 133 29 51 59 139 1993 157 51 208 74 81 98 253 1994 301 97 398 143 116 140 398 1995 392 127 519 171 173 210 554 1996 353 114 467 137 139 168 444 1997 105 34 138 46 46 56 148 1,399 465 1,863 600 606 730 1,936 (1) 10S of Base Cost, except laboratory coats (2) Local - 181 of Base Cost plus Physical Contingency Foreign a 102 of Base Cost plus Physical Contingency (3) Total cost less contractor taxes, le price contingency, all factored by 1-25. (1.25 financial-to-economic conversion factor) - au - Table 4.7 GUANGDONG PROVINCIAL TRANSPORT PROJECT Average Economic Vehicle Operating Costs oy Vehicle Class, Pavement Type and Cnndition, and Terrain (1991 Y per km) GOOD FAIR P-OOR VERY PooR M VEHICLE Plat/ Plat/ Plat/ Flat/ CLASS Roll Hill Mount RoU Hill Mount Roll Hill Mount Roll Hill Mount Paved Highvays Small car 1.00 1.05 1.08 1.12 1.17 1.20 1.45 1.50 1.i3 1.68 1.72 1.76 Small bus 0.65 0.77 0.87 0.75 0.87 0.97 0.96 1.07 1.17 1.05 1.18 1.29 Medium bus 1.02 1.19 1.33 1.21 1.39 1.53 1.60 1.75 1.89 1.77 1.93 2.09 Large buas 1.35 1.65 1.91 1.51 1.82 2.07 1.83 2.12 2.38 1.98 2.28 2.56 Small truck 0.35 0.44 0.51 0.40 C.48 0.55 0.48 0.56 0.64 0.52 0.61 0.70 Medium Truck 0.47 0.58 0.69 0.53 0.65 0.76 0.64 0.76 0.88 0.69 0.82 0.94 Large Truck 0.78 0.96 1.13 0.87 1.06 1.22 1.03 1.22 1.40 1.05 1.24 1.42 Tract-Trail 1.28 1.68 2.04 1.39 1.80 2.16 1.65 2.05 2.41 1.74 2.14 2.52 Unpaved Highways ________________ Small car 1.35 1.41 1.44 1.77 1.83 1.85 2.42 2.46 2.49 Small bus 0.90 1.06 1.16 1.10 1.24 1.33 1.39 1.51 1.60 Medium bus 1.51 1.72 1.86 1.85 2.05 2.18 2.35 2.52 2.65 Large bus 1.77 2.12 2.37 2.07 2.40 2.64 2.51 2.82 3.06 Sma.l truck 0.46 0.56 0.64 0.54 0.64 0.72 0.66 0.76 0.84 Medium Truck 0.61 0.75 1.13 0.70 0.85 1.29 0.86 1.00 1.52 Large Truck 0.79 0.99 1.16 0.88 1.08 1.25 1.05 1.24 1.42 Tract-Trail 1.38 1.76 2.09 1.49 1.88 2.21 1.71 2.10 2.44 / a only for evaluating the replacement of old and deteriorated pavement which cannot be setrengthed by overlaying. SOURCE: Guangdong Province Transport Study, World Bank, 1990, updated by 102 to 1991 - 89 - CHINA GUANGDONG PROVINCIAL HIGHWAY PROJECT Table 4.8 Economic Evaluation without Tolling Foshan-Kaiping Highway (millions of Yuan, 1991) XIEBAN-HESHAN (40 KHS) HESHAN-SHUIKOU (40 KMS) TOTAL (80 RMS) Cost Benefit Total Cost Benefit Total Cost Benefit Total 1992 92.0 (92.0) 42.0 (42.0) 134.0 (134.0) 1993 152.0 (152.0) 46.0 (46.0) 198.0 (198.0) 1994 296.0 (296.0) 92.0 (92.0) 388.0 (388.0) 1995 387.0 (387.0) 122.0 (122.0) 509.0 (509.0) 1996 348.0 (348.0) 109.0 (109.0) 457.0 (457.0) 1997 100.2 321.9 221.7 29.2 90.4 61.2 129.4 412.3 282.9 1998 0.2 359.3 359.1 0.2 111.0 110.8 0.4 470.3 469.9 1999 0.2 401.1 400.9 0.2 136.2 136.0 0.4 537.4 537.0 2000 0.2 447.9 447.7 0.2 167.4 167.2 0.4 615.3 614.9 2001 0.2 472.1 471.9 0.2 180.2 180.0 0.4 652.3 651.9 2002 6.3 497.6 491.4 0.2 194.1 193.9 6.4 691.7 685.3 2003 0.2 524.7 524.5 0.2 209.1 208.9 0.4 733.8 733.4 2004 0.2 553.4 553.2 0.2 225.3 225.1 0.4 778.6 778.2 2005 0.2 583.8 583.6 0.2 242.7 242.5 0.4 826.5 826.1 2006 0.2 610.1 609.9 0.2 254.,- 254.3 O. 864.6 864.2 2007 12.3 637.8 625.5 12.0 267.0 255.0 24.3 904.8 880.5 2008 0.2 666.9 666.7 0.2 280.1 279.9 0.4 947.0 946.6 2009 0.2 691.6 697.4 0.2 293.9 293.7 0.4 991.5 991.1 2010 0.2 729.9 729.7 0.2 308.5 308.3 0.4 1,038.3 1,037.9 2011 0.2 781.0 780.8 0.2 330.0 329.8 0.4 1,111.0 1,110.6 2012 0.2 835.6 835.4 0.2 353.1 352.9 0.4 1,188.8 1,188.4 2013 0.2 894.1 893.9 0.2 377.9 377.7 0.4 1,272.0 1,271.6 2014 0.2 956.7 956.5 0.2 404.3 404.1 0.4 1,361.0 1,360.6 2015 0.2 1,023.7 1,023.5 0.2 432.6 432.4 0.4 1,456.3 2016 (687.4)1,095.4 1,782.8 (219.9) 462.9 582.8 (907.3)1,558.3 NPV 1991 885.7 2,443.7 1,558.0 287.5 947.2 659.7 1,173.2 3,390.9 2,217.7 B/C RATIO 2.8 3.3 2.9 EIRR 24.2Z 25.8Z 24.22 PYRR 1997 18.82 16.32 18.22 NOTES: Costs are for construction (I992-1997), routine maintenance, pavement repairs (2002), periodic maintenance (2007), and construction salvage value (2016). Benefits are from diverted highway traffic and newly generated traffic. - 90 - CHINA GUANGDONG PROVINCIAL HIGHWAY PROJECT Table 4.9 Economic Evaluation with Tolling Foshan-Kaiping Highway (millions of Yuan, 1991) WOSHA-HESHAM (40 KMS) HESHAI-FSHUIKOU (40 EMS) TOTA (80 EN) Cost Benefit Total Coat Benefit Total Cost Benefit Total 1992 92.0 (92.0) 42.0 (42.0) 134.0 (134.0) 1993 157.0 (157.0) 51.0 (51.0) 208.0 (208.0) 1994 301.0 (301.0) 97.0 (97.0) 398.0 (398.0) 1995 392.0 (392.0) 127.0 (127.0) 519.0 (519.0) 1996 353.0 (353.0) 114.0 (114.0) 467.0 (467.0) 1997 105.2 276.8 171.6 34.2 77.8 43.6 139.4 354.6 215.2 1998 1.1 309.0 307.9 1.1 95.4 94.4 2.2 404.4 402.3 1999 1.1 345.0 343.9 1.1 117.2 116.1 2.2 462.1 460.0 2000 1.1 385.2 384.1 1.1 143.9 142.8 2.2 529.1 527.0 2001 1.1 406.0 404.9 1.1 155.0 153.9 2.2 561.0 558.8 2002 7.1 428.0 420.8 1.1 166.9 165.8 8.2 594.9 586.7 2003 1.1 451.2 450.2 1.1 179.8 178.7 2.2 631.1 628.9 2004 1.1 475.9 474.8 1.1 193.7 192.6 2.2 669.6 667.5 2005 1.1 502.0 501.0 1.1 208.7 207.7 2.2 710.8 708.6 2006 1.1 524.7 523.6 1.1 218.9 217.8 2.2 743.6 741.4 2007 13.2 548.5 535.3 12.9 229.6 216.7 26.1 778.1 752.0 2008 1.1 573.6 572.5 1.1 240.9 239.8 2.2 814.4 812.3 2009 1.1 599.9 598.9 1.1 252.7 251.7 2.2 852.7 850.5 2010 1.1 627.7 626.6 1.1 265.3 264.2 2.2 893.0 890.8 2011 1.1 671.6 670.6 1.1 283.8 282.8 2.2 955.5 953.3 2012 1.1 718.7 717.6 1.1 303.7 302.6 2.2 1,022.4 1,020.2 2013 1.1 769.0 767.9 1.1 325.0 323.9 2.2 1,093.9 1,091.8 2014 1.1 822.8 821.7 1.1 347.7 346.6 2.2 1,170.5 1,168.3 2015 1.1 880.4 879.3 1.1 372.1 371.0 2.2 1,252.4 2016 (699.0) 942.0 1,641.0 (231.5) 398.1 629.6 (930.5)1,340.1 NPV 1991 905.0 2,101.6 1,196.6 306.8 814.6 507.8 1,211.8 2,916.2 1,704.4 B/C RATIO 2.3 2.7 2.4 EIRR 21.5Z 22.7Z 21.42 FYRR 1997 15.8X 13.32 15.2X NOTES: Coots are for construction (1992-1997), routine maintenance, pavement repairs (2002), periodic maintenance (2007), and construction salvage value (2016). Benefits are from diverted highway traffic and newly generated traffic. - 91 - CHINA GUANGDONG PROVINCIAL HIGHWAY PROJECT Table 4.10 Economic Evaluation Sensitivity Test with Tolling Foshan-Kaiping Highway (costs increased 10, benefits decreased 102, in millions of Yuan, 1991) VOSKA-HESHA (40 KI4) HESHaN-SHUIKO'U (40 KES) TOTAL (to DRS) Coot Benefit Total Cost Benefit Total Cost Benefit Total 1992 101.2 (101.2) 46.2 (46.2) 147.4 (147.4) 1993 172.7 (172.7) 56.1 (56.1) 228.8 (228.8) 1994 331.1 (331.1) 106.7 (106.7) 437.8 (437.8) 1995 431.2 (431.2) 139.7 (139.7) 570.9 (570.9) 1996 388.3 (388.3) 125.4 (125.4) 513.7 (513.7) 1997 115.7 249.1 133.4 37.6 70.0 32.4 153.3 319.1 165.8 1998 1.2 278.1 276.9 1.2 85.9 84.7 2.4 364.0 361.6 1999 1.2 310.5 309.3 1.2 105.4 104.3 2.4 415.9 413.5 2000 1.2 346.7 345.5 1.2 129.5 128.3 2.4 476.2 473.8 2001 1.2 365.4 364.2 1.2 139.5 138.3 2.4 504.9 502.5 2002 7.8 385.2 377.3 1.2 150.2 149.0 9.0 535.4 526.4 2003 1.2 406.1 404.9 1.2 161.8 160.6 2.4 567.9 565.6 2004 1.2 428.3 427.1 1.2 174.3 173.2 2.4 602.7 600.3 2005 1.2 451.8 450.7 1.2 187.9 186.7 2.4 639.7 637.3 2006 1.2 472.2 471.0 1.2 197.0 195.8 2.4 669.2 666.8 2007 14.5 493.7 479.2 14.2 206.6 192.5 28.7 700.3 671.6 2008 1.2 516.2 515.0 1.2 216.8 215.6 2.4 733.0 730.6 2009 1.2 539.9 538.8 1.2 227.5 226.3 2.4 767.4 765.0 2010 1.2 564.9 563.7 1.2 238.7 237.6 2.4 803.7 801.3 2011 1.2 604.5 603.3 1.2 255.5 254.3 2.4 859.9 857.6 2012 1.2 646.8 645.6 1.2 273.3 272.1 2.4 920.1 917.7 2013 1.2 692.1 690.9 1.2 292.5 291.3 2.4 984.5 982.2 2014 1.2 740.5 739.3 1.2 312.9 311.8 2.4 1,053.4 1,051.1 2015 1.2 792.3 791.2 1.2 334.8 333.7 2.4 1,127.2 2016 (768.9) 847.8 1,616.7 (254.7) 358.3 613.0 (1,023.6)1,206.1 NPV 1991 995.5 1,891.4 895.9 337.5 733.1 395.6 1,333.0 2,624.5 1,291.6 B/C RATIO 1.9 2.2 2.0 BIRR 18.7Z 20.02 18.5Z FYRR 1997 13.02 10.92 12.42 NOTES: Costs are for construction (1992-1997), routine maintenance, pavement repairs (2002), periodic maintenance (2007), and construction salvage value (2016). Benefits are from diverted highway traffic and newly generated traffic. - 92 - CHINA WANGDONG PROVINCIAL HIGMWAY PROJECT Table 4.11 Economic Evaluation without Tolling Longgang-Tanxi. Highway (millions of Yuan, 1991) LWNGGANG-BAIrJN (57 KM) BAIyUN-HOUMEN (43 KM) HOUMEN-TANXI (47 KM) TOTAL (146 1M9) Cost Benefit Total Cost Benefit Total Cost Benefit Total Cost Benefit Total 1992 29.0 (29.0) 51.0 (51.0) 59.0 (59.0) 139.0 (139.0) 1993 70.0 (70.0) 77.0 (77.0) 94.0 (94.0) 241.0 (241.0) 1994 139.0 (139.0) 112.0 (112.0) 136.0 (136.0) 387.0 (387.0) 1995 167.0 (167.0) 169.0 (169.0) 205.5 (205.5) 541.5 (541.5) 1996 133.0 (133.0) 135.0 (135.0) 163.5 (163.5) 431.5 (431.5) 1997 46.3 283.0 236.8 46.2 129.0 82.8 56.2 129.6 73.4 148.7 541.7 392.9 1998 0.3 335.2 334.9 0.2 158.3 158.1 0.2 155.7 155.5 0.7 649.2 648.4 1999 0.3 397.1 396.8 0.2 194.5 194.3 0.2 187.1 186.8 0.7 778.7 777.9 2000 0.3 470.7 470.4 0.2 9.39.2 238.9 0.2 224.8 224.6 0.7 934.7 934.0 2001 0.3 497.6 497.3 0.2 267.4 267.2 0.2 244.0 243.7 0.7 1,009.0 1,008.2 2002 0.3 526.2 525.9 1.6 299.1 297.5 5.1 264.8 259.7 7.1 1,090.1 1,083.1 2003 0.3 556.6 556.3 0.2 334.8 334.5 0.2 287.5 287.3 0.7 1,178.8 1,178.1 2004 0.3 588.8 588.6 0.2 374.9 374.6 0.2 312.3 312.0 0.7 1,276.0 1.275.2 2005 0.3 623.2 622.9 0.2 420.0 419.8 0.2 339.3 339.0 0.7 1,382.5 1,381.7 2006 0.3 661.8 661.6 0.2 447.6 447.3 0.2 361.0 360.8 0.7 1,470.4 1,469.7 2007 16.2 703.1 687.0 14.3 477.0 462.7 14.9 384.3 369.3 45.4 1,564.5 1,519.0 2008 0.3 747.2 746.9 0.2 508.6 508.4 0.2 409.2 408.9 0.7 1,665.0 1,6b4.2 2009 0.3 794.2 794.0 0.2 542.5 542.3 0.2 435.8 435.5 0.7 1,772.5 1,771.8 2010 0.3 844.5 844.2 0.2 578.9 578.6 0.2 464.3 464.0 0.7 1,887.6 1,886.9 2011 0.3 903.6 903.3 0.2 619.4 619.1 0.2 496.8 496.6 0.7 2,019.8 2,019.0 2012 0.3 966.8 966.6 0.2 662.7 662.5 0.2 531.6 531.3 0.7 2,161.1 2,160.4 2013 0.3 1,034.5 1,034.2 0.2 709.1 708.9 0.2 568.8 568.5 0.7 2,312.4 2,311.7 2014 0.3 1,106.9 1,106.7 0.2 758.8 75e.5 0.2 608.6 608.4 0.7 2,474.3 2,473.5 2015 0.3 1,184.4 1,184.1 0.2 811.9 811.6 0.2 651.2 651.0 0.7 2,647.5 2,646.7 2016 (291.9)1,267.3 1,559.2 (294.9) 868.7 1,163.6 (356.9) 696.8 1,053.7 (943.6)2,832.8 3,776.4 NPV 1991 378.2 2,600.7 2,222.5 385.6 1,579.4 1,193.8 466.5 1,348.0 881.5 1,230.3 5,528.1 4,297.8 B/C RATIO 6.9 4.1 2.9 4.5 IEIR S0.9X 28.22 23.62 30.92 FYIR 1997 38.82 17.42 14.41 22.92 NOTES: Coste are for construction (1992-1997). routine maintenance, savement repairs (2002), periodic maintenance (2007). end construction salvage value (2016). Benefits are Lrom diverted highway traffic and newly generated traffic. -93 - CHINA GIASGDONG PROVINCIAL 91GFWAY PROJECT Table 4.12 Economic Evaluation with Tolling Longgang-Tanzi Highway (millions of Yuan, 1991) WONGGANG-AIYUN (57 KMB) BAIYUN-HOUMEN (43 KM) HOUMEN-TAIXI (47 KMB) TOTAL (146 KMS) Coat Benefit Total Cost Benefit Total Coat Benefit Total Cost Benefit Total 1992 29.0 (29.0) 51.0 (51.0) 59.0 (59.0) 139.0 (139.0) 1993 74.0 (74.0) 81.0 (81.0) 98.0 (98.0) 253.0 (253.0) 1994 143.0 (143.0) 116.0 (116.0) 140.0 (140.0) 399.0 (399.0) 1995 171.0 (171.0) 173.0 (173.0) 209.5 (209.5) 553.5 (553.5) 1996 137.0 (137.0) 139.0 (139.0) 167.5 (167.5) 443.5 (443.5) 1997 46.3 243.4 197.2 46.2 110.9 64.7 56.2 111.5 55.2 148.7 465.8 317.1 ;998 1.4 288.2 286.8 1.3 136.2 134.9 1.3 133.9 132.6 4.0 558.3 554.3 1999 1.4 341.5 340.1 1.3 167.3 166.0 1.3 160.9 159.6 4.0 669.6 665.6 2000 1.4 404.8 403.4 1.3 205.7 204.4 1.3 193.4 192.0 4.0 803.8 799.8 2001 1.4 427.9 426.5 1.3 230.0 228.7 1.3 209.8 208.5 4.0 867.7 863.7 2002 1.4 452.5 451.1 2.7 257.2 254.6 6.2 227.7 221.5 10.3 937.5 927.2 2003 1.4 478.7 477.2 1.3 287.9 286.6 1.3 247.3 245.9 4.0 1,013.8 1,009.8 2004 1.4 506.4 505.0 1.3 322.4 321.1 1.3 268.6 267.2 4.0 1,097.4 1,093.3 2003 1.4 535.9 534.5 1.3 361.2 360.0 1.3 291.8 290.5 4.0 1,188.9 1,184.9 2006 1.4 569.2 567.8 1.3 384.9 383.6 1.3 310.5 309.2 4.0 1,264.6 1,260.6 2007 17.3 604.7 587.4 15.4 410.3 394.9 16.0 330.5 314.5 48.7 1,345.4 1,296.7 2008 1.4 642.6 641.1 1.3 437.4 436.2 1.3 351.9 350.6 4.0 1,431.9 1,427.9 2009 1.4 683.0 681.6 1.3 466.6 465.3 1.3 374.8 373.5 4.0 1,524.4 1,520.3 2010 1.4 726.2 724.8 1.3 497.8 496.6 1.3 399.3 398.0 4.0 1,62-.4 1,619.3 2011 1.4 777.1 775.6 1.3 532.7 531.4 1.3 427.2 425.9 4.0 1,737.0 1,733.0 2012 1.4 831.5 830.0 1.3 570.0 568.7 1.3 457.2 455.8 4.0 1,858.6 1,854.6 2013 1.4 889.7 888.2 1.3 609.9 608.6 1.3 489.2 487.8 4.0 1,988.7 1,984.7 2014 1.4 952.0 950.5 1.3 652.5 651.3 1.3 523.4 522.1 4.0 2,127.9 2,123.9 2015 1.4 1,018.6 1,017.2 1.3 698.2 697.0 1.3 560.0 558.7 4.0 2,276.8 2,272.8 2016 (298.7)1,089.9 1,388.6 (301.8) 747.1 1,048.9 (363.8) 599.2 963.0 (964.3)2,436.2 3,400.6 NP 1991 393.5 2,236.6 1,843.1 400.3 1,358.3 958.0 481.4 1,159.3 677.9 1,275.2 4,754.2 3,478.9 B/C RATIO 5.7 3.4 2.4 3.7 BIDE 36.91 25.4Z 21.2X 27.8S FIRR 1997 32.5Z 14.5S 12.1Z 19.2Z NOTES: Costs are for construction (1992-1997), routine maintenance, pavement repairs (2002), periodic maintenance (2007), and construction salvage value (2016). Bamefits are from diverted highway traffic and newly :enerated traffic. - 94 - CHINA GOUANDONG PR1NCIAL IWY PROCT Table 4.13 Economic Evaluation Sensitivity Test with Tolling Longsang-Tanxi Highway (oosts increased 101, benefits decreased 10, in millions of Yuan, 1991) LONGGANG-BAIYUN (57 KMS) BAIYUN-BOUMN (43 1KM) 80W-ZNirXI (47 1KM5) TOTAL (149 KMS) Cost Benefit Total Cost Benefit Total Cost Benefit Total Cost Benefit Total 1992 31.9 (31.9) 56.1 (56.1) 64.9 (64.9) 152.9 (152.9) 1993 01.4 (81.4) 89.1 (89.1) 107.0 (107.8) 278.3 (278.3) 1994 157.3 (157.3) 127.6 (127.6) 154.0 (154.0) 438.9 (438.9) 1995 188.1 (188.1) 190.3 (190.3) 230.5 (230.5) 608.9 (608.9) 1996 150.7 (150.7) 152.9 (152 A) 184.3 (184.3) 487.9 (487.9) 1997 50.9 219.1 168.2 50.9 99.8 49.0 61.9 100.3 38.5 163.6 419.3 255.6 1998 1.6 259.4 257.8 1.4 122.5 121.2 1.5 120.5 119.1 4.4 502.5 498.1 1999 1.6 307.3 305.8 1.4 150.5 149.2 1.5 144.8 143.3 4.4 602.7 598.3 2000 1.6 364.3 362.7 1.4 185.1 183.7 1.5 174.0 172.6 4.4 723.5 719.0 2001 1.6 385.2 383.6 1.4 207.0 205.6 1.5 188.8 187.4 4.4 781.0 776.5 2002 1.6 407.3 405.7 2-9 231.5 228.6 6.8 205.0 198.1 11.4 843.8 932.4 2003 1.6 430.8 429.2 1.4 259.1 257.7 1.5 222.5 221.1 4.4 912.4 908.0 2004 1.6 455.8 454.2 1.4 290.2 288.8 1.5 241.7 240.2 4.4 987.6 983.2 2005 1.6 482.3 480.7 1.4 325.1 323.7 1.5 262.6 261.1 4.4 1,070.0 1,065.6 2006 1.6 512.3 510.7 1.4 346.4 345.0 1.5 279.4 278.0 4.4 1,138.1 1,133.7 2007 19.1 544.2 525.2 16.9 369.2 352.3 17.6 297.4 279.8 53.6 1,210.9 1,157.3 2008 1.6 578.3 576.7 1.4 393.7 392.3 1.5 316.7 315.2 4.4 1,288.7 1,284.3 2009 1.6 614.7 613.2 1.4 419.9 418.5 1.5 337.3 335.8 4.4 1,371.9 1,367.5 2010 1.6 653.6 652.0 1.4 448.0 446.6 1.5 359.4 357.9 4.4 1,461.0 1,456.6 2011 1.6 699.4 697.8 1.4 479.4 478.0 1.5 384.5 383.1 4.4 1,563.3 1,558.9 2012 1.6 748.3 746.8 1.4 513.0 511.6 1.5 411.4 410.0 4.4 1,672.7 1,668.3 2013 1.6 800.7 799.1 1.4 548.9 547.5 1.5 440.2 438.8 4.4 1.789.8 1,785.4 2014 1.6 856.8 855.2 1.4 587.3 585.9 1.5 471.1 469.6 4.4 1,915.1 1,910.7 2015 1.6 916.7 915.2 1.4 628.4 627.0 1.5 504.0 502.6 4.4 2,049.2 2,044.7 2016 (328.6) 980.9 1,309.5 (332.0) 672.4 1,004.4 (400.2) 539.3 939.5 (1,060.8)2,192.6 3,253,4 NPV 1991 4'42.9 2,013.0 1,580.1 440.3 1,222.4 782.1 529.6 1,043.4 513.8 1,402.8 4,278.e 2,876.0 B/C RATIO 4.7 2.8 2.0 3.1 KIMR 32.81 22.6S 18.6Z 24.71 PYRE 1997 26.6Ł 11.9S 9.9Z 15.7X NOTES: Costs are for construction (1992-1997), routino maintenance, pavemnt repairs (2002). periodic maintenance (2007), and construction salvage value (2026). Benefits are from diverted highway traffic and newly genorated traffic. - 95 - CHINA GUANGDONG PBOVINCIAL HIGMHIA PROJECT Table 4.14 Evaluation Summary and Sensitivity Foshan-Kalping and Longgang-Tanut Highways (1991 prices) CONSTRUC 1991 1997 LENGTH COST EIRR B/C NP FYRR (kIe) (Milo of (2) (Milo of (2) Yuan) YIMan) Evaluation as Free Road ---------------- _._.__ Foshan-Kaiping Foshan-Heshan 40 1,374 24.2Z 2.8 1,558 18.8S Heshan-Shuikou 40 440 25.8S 3.3 660 16.32 Total project 80 1,813 24.22 2.9 2,218 18.22 Longgang-Tanxl Longgang-Balyun 57 580 40.9S 6.9 2,222 38.8S Balyun-Houmen 43 586 28.2Z 4.1 1,194 17.42 Boumen-Tanxi 47 710 23.62 2.9 881 14.42 Total project 146 1,876 30.92 4.5 4,298 22.92 Evaluation as Toll Road __________ ___ _ ______ Poshan-Kaiplg Poshan-Heshan 40 1,399 21.5S 2.3 1,197 15.82 Heahan-Shulkou 40 465 22.7S 2.7 508 13.32 Total project 80 1,863 21.42 2.4 1,704 15.22 Longgang-Tanxi Louggang-Baiyun 57 600 36.92 5.7 1,843 32;5% Balyun-Houmen 43 606 25.42 3.4 958 14.52 Houmen-Tanxi 47 730 21.2S 2.4 678 12.12 Total project 146 1,936 27.82 3.7 3,479 19.22 Toll Road Sensitivity: Construction costs 102 hIgher Project benefits 102 lower Foshan-Raiping loshan-He4han 40 1,399 18.72 1.9 896 13.02 Heshan-Shuikou 40 465 20.02 2.2 396 10.9S Total project 80 1,863 18.52 2.0 1,292 12.4S Longgang-Tanri Lcnggang-daiyun 57 600 32.82 4.7 1,580 26.62 Ba1yun-Houmen 43 606 22.62 2.8 782 11.92 Houmen-Tawzi 47 730 18.62 2.0 514 99.0X Total project 146 1,936 24.72 3.1 2,876 15S7! NOTE: KIRI - econ mic Internal Rate of Return B/C a Benefit to Cost Ratio NPV - Met Present Value FMRR - First Year Rate of Return SOURCE: Guangdong Provlacial Comrnmicatlona estimates, updated by Bank staff - 96 - ,Mab1e 4.15 GUANCODNG PROVINCIAL HIG1WAY PROJECT Summary of First Package Economic Evaluations .1990 Construction ADT Leagth Cost NPV sin FMY Seq No Rt No. Rt type Location (veh/day% (k-n) (Y ml) -- --- 2 Group A: Paving Eating Gravel Roads 1 106 Natlonal Shaoguau 725 15.2 7.7 6.6 20 17 2 106 National Shaoguaan 740 14.7 7.5 9.8 24 21 3 106 National Shaoguan 914 14.0 9.5 10.9 22 21 4 106 National Guangzhou 626 14.4 7.5 6.0 19 16 5 323 National Qinguan 856 17.5 8.7 13.5 26 23 6 323 National cZ4ngyAan 651 22.2 10.9 10.8 22 19 7 1911 Prot. Qingyuan 1275 16.0 7.8 17.8 32 28 8 1923 Prov. Shanei 1101 20.2 7.9 15.8 31 28 9 1924 Prov. Huizhou 1024 26.2 17.8 24.3 24 20 10 1989 Prov. Zhanjiang 1101 7.1 2.5 6.1 34 1 Subtotal 167.5 87.8 121.6 Average 898 25 22 Croup B: Rehabilitating Existing Paved Roads 1 106 National Shaoguan 2188 11.0 5.5 29.0 81 70 2 106 National Shaoguan 2188 9.0 4.5 25.2 75 57 3 106 National Shaoguan 2188 5.0 2.6 11.6 56 36 4 106 National Qiajyuan 2042 7.0 2.7 19.3 68 47 5 106 National Qingyuan 3381 9.0 1.8 37.7 226 185 6 106 National Guangzhou 4043 8.1 4.2 38.8 113 87 7 207 National Macming 4578 21.0 3.9 128.3 151 119 8 207 National Zhanjiang 4778 11.0 5.4 75.2 112 83 9 325 National Yangjiang 6722 6.2 2.7 36.0 117 80 10 325 National Yangjiang 3778 12.0 5.2 39.6 70 A5 11 325 National Zhanjiang 4321 11.0 4.5 46.2 108 78 12 1925 Prov. Hui:hou 5135 41.2 14.9 221.6 279 251 Subtotal 151.5 62.9 708.5 Average 4138 147 121 Group Cs Upgrading Existing National Highways 1 206 National Pinyuan 88S 37.0 48.8 26.8 16 12 2 206 National Pinyuan 885 18.8 30.3 15.0 16 12 Subtotal 55.8 79.1 41.8 Average 885 16 12 …---------....-.-------_---..----..----------_...._______-.-----------...-__._____.____-__ Total 374.8 229.8 871.9 Average 5S 45 - 97 - ANNEX I Page 1 GUANGDONG PROVINCIAL HIGHWAY PROJECT Eoad Imnrovement Program A. Background 1. GP is currently experiencing rapid economic growth which started with the economic reforms in the late 1970s. As a result, freight and passen- ger traffic on the provincial highway network has grown substantially during this period. 2. The growth in highway transport demand in the province has resulted in an expanding vehicle fleet, increasing vehicle utilization, and greater use of heavier vehicles. From 1986 to 1991, the total motor vehicle fleet grew 18 percent per year. The highway freight density (ton-km) and passenger density (passenger-kl) grew 12 and 15 percent per year respectively On the other hand, road maintenance expenditures in real terms grew at only about 6 percent annually. Clea- evidence of underinvestment in the Provincial road network was noted by various Bank preparation missions, in particular, undesirable postponement of pavement overlays and rehabilitation. With continuing growth in traffic, it will be necessary to increase the allocation of resources to highway maintenance and rehabilitation in order to prevent further deteriora- tion of highway pavements. The objective of the RIP covrponent of the project is to reinforce the Provincial program of highway strengthening and improvement. 3. With increasing maintenance and rehabilitation needs, and with grow- ing demands on Provincial budgets, it is becoming facreasingly necessary to make prudent and cost effective decisions in planning major road works. In recognition of the need for more systematic and advanced method of determining highway improvement strategies, a RDB and PMS have been developed in the Prov- ince since 1986. The RDB and PMS provide a very useful tool for the GPCD to monitor the current road network conditions and to allocate limited mainte- nance funds. The methodology has been taken further in the preparation of this project by introducing economic evaluation techniques, as described in this Annex. B. The Proposed Program 4. Based on the existing PM8, the GPHAB has tentatively identified 86 subprojects for inclusion 'n the RIP. These subprojects can be categorized into three groups: Group A: 24 subprojects, 450 km, for paving existing gravel roads. Those road falling into this category but narrower than 7 m would be widened to 7 m; - 98 - ANHX L Page 2 Group BD 59 subprojects, )3 kI, for rehabilitating existing paved roads; and Group Cs 3 subprojecto, 107 km, for upgrading National Highways. The improvewnt work including widening, realignment and pavement rehabilitation. 5. The total investment of the RIP is estimated to be Y 693 million. The detailed breakdown cost table is presented in Table I to this Annex. 6. The RIP would be processed in a series of packages. inly the sub- projects in the first package have been appraised; it is required that the evaluation of subprojects in the subsequent packages follow the methodoWogy outlined in this annex. The subprojects selected for inclusion in subsequent packages would depend on the status of preparation of the required studies, on the availability of local funds, and on other criteria stipulated in Section C of this annex. Most of the 150 subprojects tentatively identified by SPHAB are expected to qualify for inclusion in the RIP; however, other subprojects meeting selection criteria could be added t4 the program. C. Criteria for Subroisct Selecti-on 7. The criteoia for selecting subprojects in the RIP are as follows: (a) the 8IRR, calculated according to methodology presented in this annex, should not be less than 12 percent; (b) engineering design should be prepared according to the geometric standards indicated in Table 1.7 of this SAR end sound engineering practices; (c) the procurement procedures should be in conformity with Bank Guide- lines for Procurement, specifically paras. 2 and 3 of Appendix I thereof; (d) an EAP and, for subprojects with potential adverse Impact on the environment or located in environmentally sensitive areas, an Envi- ronmental Assessment, prepared as outlined in Annex 3 to this SAR; and (a) a RAP prepared in accordance with the procedures followed for the Poshan-Ralping and Longgang-Tanxi Highways, as described in Annex 4 to this SAR. 8. Appendix I to this Annex summarizes the requirements for subproject selection, preparation, and bank review. D. gconomic Rvaluation of Grouns A and B: Pavin Existlna Gravel Roads and Rehab1litatLag Paved Roads 9. The first package of subprojects for the RIP include 10 from Group A (paving existing gravel roads) and 12 from Group B (rehabilitating existing paved roads). Their evaluation is summarized in this section, - 99 - Page 3 10. Meth-odoloaw. The evaluations of Group A aad B prcjects used the Bank's Highway Design and Maintenance model (HDM 111)./ The IDM model iA designed to estimate total life-cycle costs--construction, maintenance and road user costs--as a function of road deLign, maintenance standards. and other policy options. Thus the model entbles decision makers to com.pare costs and benefits associated with different rehabilitation and upgrading strate- gies. 11. For any road, given the existing conditions cf t!Iat road, the traf- fic characteristics, and the maintenance policios, the HDI model can simulate the road surface conditions and vehicle operating costs as they are affected by the level of maintenance. For each year of analysis, the road surface conditions (roughness, rutting, cracking, btc.) are computed as a function of the pavement conditions at the end of the previous year, pavement characteris- tics, climate, intensity of road maintenance, and both traffic volume and composition. Vehicle operating costs on that surface are then computed as a function of road surface conditions and vehicle characteristic. This simula- tion, repeated for each year of the analysis period, produces the annual costs of road maintenance and vehicle operations for each maintenance policy, from which economic comparison can be made. 12~ PreDaration of Basic InDut Date. The basic input data required for the HDM model consist oft (a) existing road characteristics; (b) vehicle characteristics and costs; (c) traffic volumes, compositions and growth characteristics; and (d) maintenance unit co3ts. 13. Existing road conditions include data on climate, road geometry, the type and strength of the pavement structure, and existing surface roughness. The detailed existing conditions of subprojects included in the first package are presented in Table 2 to this annez. 14. Eight vehicle types were considered In the manlysis. For each type of vehicle, a set of typical chareczeristics and unit prices were prepared which are presented in Table 3 to this annex, The vehicle types used are listed as follows: 1) Small car 5) Small truck 2) Small bus 6) Medium truck 3) Medium bus 7) Large truck 4) Large bus 8) Tr:ctor-Trailer 15. Traffic data includes traffic volume, vehicle composition, and growth charactoristics. A standard traffic composition was used for all the LI The Hiahwav Desian and-Maintenance Standaras Model, Watanatada and oth- ers, The Johns Hopkins University Press for the World Bank, 1987. - 100 - Page 4 subprojects in the analysis. Road traffic was projected using a growth factor cumon to all vehicle types, but varying by period. The percentage of various typ9s of vehicles and traffic growth rate at different time periods are listed as the fol.Lowing: Traffic ComDosition Small car 13Z 5) Small truck 161 Small bue 131 6) Medium truck 331 Medium bus 41 7) Large truck 21 Large bus 4% 8) Tractor-trailer 152 Traffic Growth Rat9s 1991-95 10% per year 1996-2000 8 2001-10 5 16. Maintenance Policies. A road maintenance policy defines two aspects: (i) the types of maintenance activity undertaken, and (ii) the intervals at which tne activity should be performed. Various types of mainte- nance activities are considered in the modelling. These activities and their unit cost are listed as follows: Financial Unit Ty-,e cobt Economic cost Gravel Roads Grading 0.55 0.63 Yuan per km Spot regravelling 80.0 92.0 Yuan per ms Gravel resurfacing 84.5 96.6 Yuan per a Routine 3,750 4,313 Yuan per km/year Paved Roads- Patching 11.0 12.7 Yuan per ma Overlay 21.5 25.0 Yuan per ma Reconstruction Variable Variable Routine 4,500 5,175 Yuan per km/year 17. The timing of maintenance activities can be specified to follow a fixed schedule (e.g., every 30 days, or every 10,000 vehicle passes), or to be condition responsive (e.g., patch all cracks when cracking covers 20 percent of the pavement surface). For each subproject, both a with-project and a without-project case were established for analysis and comparison by the EDM model. To avoid distortion, adequate maintenance levels wire assumed for both "with" and "without" cases. The improvement and maintenance p*licies were developed with GPHAB and are presented in Table 4 to this annex. - 101 - Page 5 18. For Group A projects (pavl.ng esxeting travel roads), routine mbinte- nance was always ealectid for both "with" and "without" cases. In addition, the "without" case adopts following maintenance policy: (a) grading every 200 vehicle paseesl (b) spot regravelling to replace 20 percent of material loss each year; and (c) resurfacing whenever the surface course is worn out to restore the thickness of the surface course to the original thickness. The "with" case for Group . projects specified the following maintenance pol- icy: (d) paving the surface immediately; and (e) overlay whenever surface roughness exceeds 7.0 IRI mijm 19. For Group B projects (rehabilitasing existing paved roads), routine maintenance and a policy of patching all po,.holee as they occur was specified for both vith-project and without-project cases. No additional maintenance was specified for the "without" case, but for the "with" case, a reconstruc- tion was specified to be performed every 12 years. 20. Results.for the First Packete Group A and B Sub -rolects. The asso- ,.ated construction, maintenance and vehicle operating costs were estimated year by year for an 18-year period (1993 to 2010) for both the "with" and "without' cases for each subproject. By comparing cost and Denefit streams for both cases, the HDM model estimated economic indices suck as NPV and EIRR. All subprojects in Group A and B of thie first package yielded high economic rates of return. The EIRR of Group A subprojects varies between 19 percent and 34 percent, with an average of about 24 percent. The EIRR of Group B oubprojects reached over 56 percent. The results are summarized in Table 7 to this annex. S. Economic RvAluations of Group C: Untradina National Hiahwavs 21. The first package of subprojects for the RIP contain two projects from Group C (upgrading National Highways). These were evaluated using a computer spreadsheet evaluation model developed in previous Bank highway proj- ects in China. This treated many aspects more timply than HDki, but did account for important congestion effects which are not included in HDM. Thus the Group C model assumes a standard composition for motor vehicle traffic (compared with eight vehicle types separately analyzed in HDM), but does con- sider the influenze of agricultural tractors and other slow vehicles, includ- Ing bicycles, which are important when traffic capacity is - ng considered. The inputs to the model are described below. 22. Traffic forecgst. Road traffic was initially projected using the growth factor method. Traffic volumes were projected by three types cf traf- fic: motor vehicles., agricultural tractors, and other (mainly bicycles). The estimated traffic volumes were then converted to an equivalent medium truck traffic volume and compared with the capacity of the road. If the equivalent - 102 - Page 6 volume was lower than road capacity, the projected volume was taken as the future traffic volume. If the converted volume was higher than road capacity, it wva then adjusted to equal the capacity of the road, and the volumes by vehicle type vere adjusted proportionately. 23. The 4-ton medium truck (5.5-ton GVW) was used as the standard vehi- cle and other typed of traffic convurted to truck traffic. The conversion factor for vehicles, tractors and other traffic were assumed to be as follows: Motor vehicles 1.0 Agricultural tractors 1.0 Others 0.067 24. A uniferm set of traffic growth fa.ctora were used for the evalua- tions of all the projects. The growth factors (rates) used for various types of traffic across different time periods are listed in the following table: Annual arowth rate Traffic type 1991-95 1996-2000 2001-10 --------------- (Z) …-------------- Motor vehicles 10 8 5 Agricultural tractors 5 2 0 Others 2.5 0 -5 25. Vehicle traffic is assumed to grow in all three time periods but at decreasing rates. Tractor traffic is expected to grow in the near future but at a much lower rate than vehicle traffic. Beyond 2000, tractor traffic growth rate is set to zero. Other traffic (mainly bicycles) is assumed to have a negative growth beyond year 2000 to reflect the likely switch to motor- ized vehicles as the Province becomes more developed. The growth factors presented above account for normal traffic growth likely to occur with economic development. Additional traffic is assumed to be generated by the project at a rate of 10 percent of the normal traffic. 26. HiehWav Cavacltv. The practical capacity of a highway is defined as the maximum traffic volume reached when the stability of the traffic stream starts to break down. Congestion effects, In the form of impedance of the faster vehicles by slower ones, are felt over the whole range of traffic vol- umes up to that volume, but Instability of flow and the onset of stop-go con- ditions occur only after this volume is exceeded. The practical capacity of a flat tangent 7-m 2-lane highway is about 2,500 Passenger Car Equivalent (PCE) per hour. Since a medium size truck is equivalent to 2 passenger cars, prac- tical capacity for this type of highway is assumed to be 1,250 equivalent medium trucks per day. - 103 - Page 7 27. Capacity is assumed to vary with the width of pavement. The follow- ing adjustment factors were adopted to modify the capacity of a 7-m road (with linear interpolation) when the road width is different from 7 ms 7.0 m 1.00 6.7 m 0.98 6.1 m 0.90 5.5 m 0.80 28. Road capacity drops with increasing hilliness. The following fac- tors were adopted to modify capacity for each road geometric classt Flat/Rollingt 0.85 Hilly: 0.65 Mountainous: 0.50 29. Vehicle ODeratina Cost. Vehicle operating costs were estimated in two steps. First, free flow operating costs were estimated and then the v81- ues were modified to reflect the degree of traffic congestion. 30. Free flow operating costs for various types of vehicle are listed in Table 4.7 of the main SAR. To obtain an average operating cost for vehicle traffic, the following fleet composition was assumed for vehicle traffic on all roads analyzedt iVehile tvDe Percentage Small car 13 Small bus 13 Medium bus 4 Large bus 4 Small truck 16 Medium truck 33 Large truck 2 Tractor-trailer 15 31. The average vehicle operating cost, weighted by the above percentage traffic composition, were defined as follows: - 104 - ANNEX 1 Page 8 Surface Pavement Flat/ Type Conditions rolling Hilly Mountainous Paved Good 0.73 0.88 1.02 Fair 0.81 0.98 1.11 Poor 1.01 1.16 1.30 V. poor 1.10 1.26 1.41 Unpaved Good 0.92 1.09 1.32 Fair 1.49 1.88 2.21 Poor 1.71 2.10 2.44 32. The purchase price of the agricultural tractor was estimated at about 1/6 of the cost of a small truck. Running cost are probably not propor- tionately as low as the purchase price, therefore it was assumed that tractor operating costs are 1/4 of the average vehicle operating cost. 33. Vehicle operating cost under congested conditions were obtained by multiplying free flow cost with a congestion factor, estimated as a function of daily volume capacity ratio. Congestion factor used for different volume capacity ratio are listed as follows: Volume/capacity Congestion ratio factor 0.0 1.00 0.6 1.00 0.7 1.05 0.8 1.15 0.9 1.5 1.0 2.5 34. Road Maintenance Costs. Road maintenance cost can be divided into fixed and variable. The fixed cost does not change with traffic volume. In the evaluations, the fixed cost is assumed to be Y 4,400 per km per year for roads with asphalt surface and Y 4,700 for gravel and earth roads. The vari- able cost changes when traffic volume changes. It can be measured as a linear function of daily traffic volume. Values of Y 30 and Y 53.5 per daily vehicle per kilometer per year were assumed for asphalt surface and gravel surface roads, respectively. For example, the annual maintenance cost for a gravel road with 200 vehicle per day would be: 4,700 + 53.5 x 200 - 15,400 Yuan/km 35. Conclusions on First Packase Groun C Subnroiocts. The spreadsheet evaluation model for each of the two Group C subprojects are presented in Tables 5 and 6 to this Annex. The economic coset of upgrading the first sec- tion (starting cha4nage - 2087 + 000) of National Highway 206 is estimated to be Y 56.9 million (financial cost is estimated to be Y 48.8 million). The - 105 - Page 9 project is estimated to yield an NPV of Y 27 million at 10 percent discount rate and an EIRR of 16 percent. The FYRR is 12 percent. The economic cost of upgrading the second section (starting chasinage - 2137 + 376) of National Highway 206 is estimated to be 35.3 million (financial cost is estimated to be 30.3 million). The project is estimated to yield an NPV of Y 15 million at 10 percent discount rate and an KIRR of 16 percent. The PYRR is 12 percent. F. Road Imirovement Proaram Evaluation Summary 36. To test and demonstrate che procedures for subproject selection, engineering design, and economic evaluation, a first package, comprising 24 subprojects (10 gravel road paving, 12 paved road rehabilitation, and 2 sec- tions of National Highway upgrading) was identified by the GPHAB. The charac- toristics of these projects, together with tha summary of the economic evalua- tion results, are shomn in Table 7 to this anex. All the subprojects in the first package yield an acceptable rate of return. - 106 - ANNEX 1. Table 1 CHINA GUANGDONG PROVINCIAL HIGHWAY PROJECT Estimated Economic Costs of Road Improvement Program (Y mil, March 1991 prices) Cost Items Local Foreign Total Civil Engineering Cost 358.53 168.72 527.25 Supervision of Construction 6.25 0.00 6.25 Supervision Equipment 0.24 3.76 4.00 Bsge Cost 365.02 172.48 537.50 Physical Contingency (1) 36.48 16.87 53.35 Price Contingency (2) 56.21 11.36 67.57 Sub-total 457.71 200.71 658.42 Land and Resettlement 34.53 0.00 34.53 Financial Cost 492.24 200.71 692.95 Economic Cost (3) 523.23 227.22 750.46 (1) 10 of Base Cost, except equipmont costs (2) Local - 14X of Base Cost plus Physical Contingency Foreign - 61 of Base Cost plus Physical Contingency (3) Total cost less price contingency, all factored by 1.2. (1.2 - average 1992 financial-sconomic conversion factor for road improvement projects) I~~ 1-~ ~~ ~ m -m r bs _ &sfe Sr to-Can Average Avg Ainl Surface Stoulider th is borism cow"e 1i90 Degiala bin tAlitude Chew tlaIal. With Vldtb Pall SuY Surfo ace icisac Proj so at lb. It tye Locti. Chatng (i) (a) Cm) (a) (a) (now) (dagmIi) Type Cm) M) I 106 SetI Shosan 215400 1S.21 0lo0 3 3.6s0 o 0.30 60.0 6o0.0 Crevel 20.0 723 a 100 SatlosL Seogs 2172#f 14.65 l100 4 1.6O0 6.6 0.50 100.0 3000.0 arevel 20.0 740 3 106 ratios aeoaa 22629300 14.00 3000 4 I, ee 5.7 0.50 100.0 3000.0 orel 20.0 914 4 106 Setiosl SCaga 24404000 16.36 3000 3 I . 3.0 0.50 100.0 3000.0 Creel 20.0 626 3 323 fStiaom QIaaJua 383.0 17.50 1000 S I: 2.216 5.0 0.30 300.0 1000.0 Orel 20.0 am 6 323 Qatioml qioaa 333900 22.20 1000 4 2,236 3.0 0.30 100.0 1000.0 oCreel 20.0 631 7 loll Pr. ql qyueu 362#900 6.00 300 3 2.216 S.S 0.50 45.0 so0.0 Crewel 20.0 1273 6 1923 Pr. Sbamid 124000 20.20 100 4 1.930 7.3 0.30 23.0 100.0 c ,wel 20.0 1101 9 3924 Proe. Mll= 2eo 26.20 100 4 1.70 4.9 0.50 300.0 1000.0 Creel 20.0 1024 10 li6t Prou.. bajitea 49400 7.11 10t 4 1.334 7.6 0.50 25.0 100.0 Creln 20.0 1301 2. biti, Pa. aes" Average Avg hin Suta Shoulder tRIe PUea Sorisan Surface II&" Surfac 01.t Altitde Class at˘al i Width Width tal c11 Suace eao TbLcisse Thinem. gaighma 19 Seq so t so. St tpe Same Degini (i) is) Ims) (a) (a) (afte) odreei) TJ_b Type I_c 1m) (m (I) DE O ..~~~~~~. . .__ .... _....._._________._............................. .____ ............ _______ __________ .................................................... -______ --_ - -------- 1 106 Matlcol Sbaogu 220100 11.00 SO3 4 1.600 6.0 o.7 60.0 D G ASS" I 20.0 150.0 10.0 2160 2 106 Satia Sbeousn 222140 9.00 so0 4 1.600 P.O 0.30 60.0 600.0 AM I 20.0 150.0 e .3 * 21 3 106 Setical Sb_agu 23300 3.00 300 4 1.600 ..1 0.73 60.0 4a0.0 AM5 1 30.0 1O3.0 6.3 216 4 l oste i Qtuaa 23334000 7.00 Soo 4 2.216 10.1 1.00 60.0 200.0 ABSS 1 23.0 200.0 7.1 2042 S 106 Setool Q1aan 2383000 9.00 SOO 4 2.216 7.2 0.63 60.0 o.0 "ST 1 23.0 200.0 7.3 3381 6 106 "tuna Seaqsubu 24743UO .14 100 4 1.694 7.9 3.00 25.0 300.0 ASs 2 30.0 200.0 8.0 4043 7 207 Satioal SW..Ia 34234000 21.00 300 4 1.423 11.0 0.50 25.0 100.0 Asr 2 30.0 160.0 0.0 4378 6 207 SetiousI Zhe.jia S262+000 11.00 300 4 1.334 9.0 1.23 2S.0 100.0 ASS? 2 30.0 200.0 7.1 4776 9 3223 astlawl Iarsvjia 2s04o0 6.20 300 4 2.200 9.0 I.SO 25.0 100.0 AM 22.0 200.0 4.9 6722 10 323 Setioua ?Tajun 264*000 12.00 100 4 2.20 9.0 1.30 23. 100.0 ASST 2 25.0 200.0 3.2 36 11 32S fteial ZbaaJlm 443.0 33.00 100 4 3,324 9.0 3.30 23.0 300.0 ASS? 2 3.0 200.0 6.3 4321 12 2923 ?rV. dSiow 240 41.3? 100 2 1.700 7.0 0.75 25.0 300.0 ASS? 2 3o.0 200.0 20.0 3133 cs cut of ale.. I b *ST? for aephalt Wfrae tŁretut I.c bae typ * It for flble sateuiala is for ae-rfgId materals I!Un - 108 - AN X I Table 3 * ~~~~C8SVt VAJJW~ FPROINCIAL HZOHWAY PRWECT Vehile Characteriutics and Costs SlmaL Medium Large Tractor Small Medium Laisg Small Car Truck Truck Truck Trailor Bus Bus Bus 1. Vehicle Chracteristics Siza 150 cc (2 ton 4.5 ton 8 ton 25 ton 28 seat 40 seat 60 seat Borge powr 90 80 100 100 210 so 100 100 Type of fuel gaaoliae gsolin, gasoline diesel diesel gasoline gasoline diasel Avg load carried 9 pesr 1.1 tons 2.3 tons 6 tons 12 tons 28 pass 40 pcss 60 p"s Number of tirea 4 4 4 6 14 4 6 10 2. Economie Costs (1991 Yuen) Vehicle 232,705 30.910 44,660 104.280 185,790 78,650 155.430 187,220 Tire 66 440 572 715 880 440 396 792 Crew wages per hour 1.12 1.12 1.12 1.45 2.18 1.12 1.45 1.45 Pasgr tim per hour 0.33 0.00 0.00 0.00 0.00 0.30 0.30 0.3 Main. labor pcr hour 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 Fuel & lubricant (Yuan/liter): Petrol - 0.91 Diesel 0.8 Enginee oiL - 0.709 Intersat rate - lO1 3. Vehicle Utilisation km driven per year 30.000 50,000 50,000 75,000 75,000 65,000 65,000 65,000 Vehicle lif (year) 1S 12.5 12.5 9 9 10 10 10 Annual Operating hours 1,500 1,500 1,500 1,500 1,500 2,000 2,000 2,000 Veh depreciation code /_a 1 1 1 1 1 1 1 1 Vch utilisztion code /_b 3 3 3 3 3 3 3 3 /_ Vehicle depreciation codes: 1 - dstliUces varying vehicle life method 2 - Constant vehicle life method /_b Vehicle utiliuation codes: 1 - Constant Annual kilometerage; 2 - Constant annual hourly utilisZtion; 3 a Adjusted utilisation. cHN OU&12 PIPNCL HIGUIITlA P UOJN Proposed larowmnt ma Naint.te e Policlts 1. twtg osia toed with Zapovmmn Vithat sprowment (Rae Case) Propoe mroent asgin'" Be Same Surface Surface Seq No It No. It tye Location Chainage aintenane Policy ?ype I/ * lbes Type lb 'hicbsa Maiteance Polley I I" fttim Swu 2131*M0 2 15 go 3 cm 2 l06 N tlol Sbaogue 2172.000 0 2 15 co 3 4co 3 106 National Seogun 2262+500 1. Rotie maintenanco; 2 15 cm 3 4 co 4 106 Natioal Guashbo 24404000 2. grad wory 200 wb,, spot regrawellin to recover 2 20 ce 2 3 cm 1. Routine maieance S 323 Natioal Qinguan 585+900 3. Spot regravelling to recover 20X of materl lose 2 15 cm 1 2.5 c 2. s cm asphlt ixtuNe overlay 4 323 Natial Qingyun 5333900 4. Resurfacing wboe thu weeing *ourse Is worn out 2 13 cm 2 4 c wben II (ro}unse)3 7.0 all 7 loll Pru. qingywe 1629000 2 13 co 2 4cm * 1923 Prow. Sbms 120t0 a 2 20 cm 2 4 cm 9 1924 Prow. sisbn 24000 I 2 20 cm 2 4 cm 10 1989 Pro. njian 490500 I 2 15 a 4 5 cm _ __ ___. ........ . ........ __._________ ___________ ........................... ................................................... ..._._._. _.........,_____............ ___. ..____ ._________________ ____________ 2. b.tLV Ptaed to dP -- Propose Improveet Regiunin Base Ease Surface Surface0 Seq No St No. It tne Location Cbelnge Type Thicknee Typ Thickness maintae Policy sD 1 106 Natial S beogun 2201.000 I 2 20 cm 3 5 cm I 2 10 matial Sbagan 22l21OO I 2 20 c 3 Sco 3 §106 Ntionl Sbeoguan 22304000 I 2 20 cm 3 5 cm a 4 106 National Qinuyn 23354000 2 15 cm 3 5 c 1. Routi Maintenanc 5 106 Natioal Qbna 2383e000 2 15 cm 3 5 c 2. Patchin 10 of potbold area 4 106 Notonal Ouasbou 2474+460 1. Routin maintunance 2 20 cm 2 5 cm 3. ecots ctin ewery 12 years. I 207 Natiol Homan 3421400 2. Patebhin lo percent of patbhlee area 2 15 cm 3 6 c witb nw type of structure 4 207 Natinl tbanjiung 3624000 2 20cm5 m l a tb r o premt 9 525 Nticual Tajig 2504000 e 2 20m 2 cm 10 323 National enw4jia2 0 2444 2 20 2 4cm 11 323 Nationa Rnjieng 4454000 2 13 cm 3 5cm 12 I92SP ro. ebisho 2000 2 20 ce 2 5s base tpes * sem-risid mttril 2 I flexible aterils lb mwrece typs I sepalt surfaee tratmant 2 - ahlt concete 5 - aphalt mlatue" -110 - OUMIGON MPUOVCIAL fhOWT PIOUC E:onomic Analysis of National load 206 at Pinp7ua Terrain 2 1-flatcroUic.. 2-billy. ~ opomtCas.aT.lo. ELUy Moun "aysoer 365 amutlossra;; -- - --- ---*m -U Conat1r. 56.690 millions of Yuan Pave oo 1" 0.73' 0.68 .0 Intereat 10.0I Percent Fair 2 0.61 0.66 1.11 Can Trail 10.01 Percent V. poor 3 1.10 1.26 1.41 Onpaved Good A 0.92 1.06 1.322 amu c Fair a 1.00 1.26 1.SO Inputa l~~~~~~~~~~~~~~~~~~~~~~~~~foot 3 1.35, 1.32 1.79 v,ist anc 36.20 35.62 Kilm eters _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ pavement I I I-pawed. 2-Anpaved anenctoe Condition 3 1 1.go 2-flai. 3-v. poor...... Width 6.6 7.5 Mae. Paved Unpaed Calcu.Ut.d, ~~~~~~~~~~~~~~~~~~~looad 4.400 4 700 Tusan/Pyr Calculated' ~~~~~~~~~Variable 50.0 Ł2.5 Yuanidaily veb-.n/yr Caacty 10.454 10.928 Vehicles (sad trl eqe) per day_________________________ lM8maint 4.400 4,400 Yuan per km r ya War saint 30 30 Tua per dad'iy veb.) per year Capacity (eq medium trucks per day) asee. WOO 1.26 0.66 Yuanm ve veb-m - TraZEla MnMUAL. vu&nt'~U -i-s Width llritol illy Mount Ghwed-......... ...... .. .. 1990 1993 - ;; 2000 2010- PAOC --- ----- ----- ..... . ~~~3.0 4.300 3,300 2.600 Vehicles 085 10.0X 6.0X 3.01 1.000 5.5 11.600 6.600 26.60 Tractors 277 5.01 2.01 0.02 1.000 6.0 13.000 9.900 7.700 )tber 1,174 2.512 0.01 -.5.0 0.067 7.3 14,200 10,6000 6.300tf iraxzic wrojectioas InITIAL PIOJEID 231111 NORMAL 22*111 ZINTTAL P1OJEC 0221 ODIFlE PROJECTIIWS 1903 1176 321 ~~~~1264 1.563 1.178 321 1,296 353 1.733 1.296 353 1.733 1994 1298 337 1296 1.719 1.296 337 *.425 370 1.662 1,423 370 1.002 1995 1425 354 1326 1.667 1,423 354 1.566 3ao 2.045 156 39 205 1996 1539 361 1326 1.986 1.539 361 1.693 597 2.17 169 37 216 1997 1662 368 1326 2.119 1.662 366 1.629 405 2.322 l,629 405 2,322 1996 1795 375 1326 2,259 1,795 375 1.975 413 2.476 1.975 413 2.476 1990 1939 363 1326 2,410 1,939 363 2.133 421 2.643 2.133 421 2,645 2000 2094 390 1326 2.573 2.094 390 2.304 429 2,622 2.30 429t,62 2001 2199 390 1262 2,673 2.199 a9 2419 429 2.932 2.419 429 2.32 2002 2309 390 1199 2,779 2.309 39:0 2.540 429 3.049 2.540 429 3,9 2003 2424 390 1139 2.61 2,424 390 2.667 429 3,172 267 429 3.172 2004 2346 390 1062 3.0081 2.346 390 2.600 429 3,302 2,600 429 3302 2005 2673 30 102 5.132 2.673 390 2.940 429 3,4368 2940 429 a,436 2006 2606 390 976 3.262 2.606 390 3,067 429 3,582 3,067 429 3.562 2007 2947 390 926 3.399 2,947 390 5,241 429 3.733 3,241 429 3.733 2006 3094 390 681 3,543 3,094 390 3.404 429 3,692 3.404 429 3,692 2009 3249 390 637 3,695 3.249 390 3 574 429 4.059 3,574 429 4,059 2010 3411 390 795 3,635 3.411 390 3,752 429 4,0235 3,752 429 IL23 Uoi2NFUWt growth rates uo-ntrcoirot traf to 1!Fihiiefied C3 l5FUtal traffic cap of oxustinS road generated traffic to capacity of am coad Estimated Costs and lenefits NOalmL tEshIC ADDITL- -- - -- CU-!E.... 3ATED 63W VIC 210 CM ACTO - . - - COBBlE BlINT Dis~~~t Dist Surf Surf--------- - NBIT 0L usm..., .... T=1 Wes tae COSTS wv gen) Webs Trace Webs Traes Vbeb Trace 33W WIgs so gn Oild gm ..... .... . .... .... .... .... .... .... .. .… 1993 28.4 ~~~~~~~~~~~ ~~~~~ ~~~~~ ~~~~-28.4 0.15 0.16 1.00 1.00 1994 26.4 -265.4 0.16 0.16 1.00 1.00 1995 1,423 354 0.17 0.2 0.0 7.1 0.4 0.4 0.0 6.0 0.16 0.17 1.00 1.00 1996 1.539 361 0.16 0.3 0.0 7.6 0.4 0.4 0.0 8.6 0.19 0.16 1.00 1.00 1997 1.662 368 0.19 0.3 0.0 6.3 0.5 0.4 0.0 9.3 0.20 0.19 1.00 1.00 1996 1.795 371% 0.21 0.3 0.0 6.9 0.3 0.5 0.0 10.0 0.22 0.21 1.00 1.00 1999 1,939 363 0.22 0.3 0.0 9.6 0.5 0.5 0.0 10.6 0.23 0.22 1.00 1.00 2000 2,094 390 0.24 0.4 0.0 10.4 0.3 0.5 0.0 11.6 0.23 0.24 1.00 1.00 2001 2,199 390 0.25 0.4 0.0 10.9 0.5 0.6 0.0 12.2 0.26 0.24 1.00 1.00 2002 2.309 390 0.26 0.4 0.0 11.5 0.5 0.6 0.0 12.7 0.27 0.23 1.00 1.00 2003 2,424 390 0.27 0.4 0.0 12.0 0.5 0.6 0.0 13.4 0.26 0.26 1.00 1.00 2004 2,546" 390 0.26 0.4 0.0 12.6 0.5 0.7 0.0 14.0 0.29 0.27 1.00 1.00 2005 2,675 390 0.29 0.5 0.0 13.5 0.5 0.7 0.0 14.7 0.30 0.29 1.00 1.00 2006 2,606 390 0.31 0.5 0.0 13.9 0.5 0.7 0.0 13.4 0.31 0.30 1.00 1.00 2007 2,947 390 0.32 0.5 0.0 14.6 '.5 0.6 0.0 16.1 0.33 0.31 1.00 1.00 2006 3.094 390 0.33 0.5 0.0 15.4 0.5 0.6 0.0 16.9 0.36 0.32 1.00 1.00 2009 3,249 590 0.35 0.8 0.0 16.1 0.5 0.6 0.0 17.7 0.35' 0.36 1.00 1.00 2010 3,411 390 0.36 0.6 0.0 16.9 0.5 0.9 0.0 16.6 0.37 0.35 1.00 1.00 Economic Evaluation 0eto WIC lctor Knot not present Tawsj 26.6 Yuan mil"nun- Econeomiclate Of lAtUrn 16.42 0.0 1.00 0.00 first leOr lAte Of Return 12.22 0.6 1.00 0.05 0.7 1.05 0.10 0.6 1.15 0.35 0.0 1.50 1.00 1.0 2.30 00 EoaconMi Analyslo of Natioaml Aeed 204 at Ltaten Vbicl* @peratium Coatt (luanlvab.ba) Dyueyar 343.......M M R y m t =ntlr. 35.33 Wlilliams of IvnPae Go I 0.73, 0.88 1.02 IMOrOSt 10.02 Peragnt aar 0.61 0.96 1.11 GanTra 10.as Percent Poor 3 1.01 1.14 1.30 ________________________________________________ Unpmaved Good I 0.192 1.09 1.52 viaU saw ir 2 1.09 1.24 1.50 Poor 3 1.3S 1.52 1.79 Ott n e 16.20 17.07 KiLceeter _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Paveumut 2 1 1-paved 2-wyavwed Gooseane ea COUdIIIC. 2 1 1-od,3hi,3poor - . .... width 0.3 7.2 Pavtergofar Vised 04ir .7i 0 luanInikm Cal*ul&tedl Varible I.. 13.5 Tuanldairlyweb-inyr 6, 00 10731 V ehicle. (mad ith 0,.) per day_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ FATIuai 1 7,700 0,400 luau per In er year War *"Ait 54 30 Tuas per da wbupew year Capacity (eq medium tugh. per day) Baee VWO 1.24 0."0 luau per ...eb.... _________________ _________________ _______________ Be" 17,000 ( 250000.S'13*0.9) crani, aua.vaan u Width flatIo lilly lount 1990 1995 2000 2010 FAGt0C6C 30 0 Vehicle. 865; 10-.83 6.8 5.3 1.00 5. 11,0 6,6080 061,400 Tractors 277 5.83 2.02 0.02 1.000 4N0 13.000 9,90 7,700 Otber 1,170 2.32 0.02 .5.03 0.047 7.5 14,'200 1:0.0,0 6,300 INMTAL. IOWSCTO 23*AMC 30OWA1 TRAMIC MNTIAL 23031 a= OWHDIIDM P3OJIC?IU 'fUR lobe; -- Trace Othe---Ce., We.. race. . eb.... Trace.C..' Web. Trace .... ; ~~995 1176 521 1240 1,363 ~~~~~~1,176 321 1,9 353 1,755 1,296 353 1,733 1990 1294 55129 290 1,71 1,294 337 1,02 370 1.642 1,025 570 1,682 1995 1425 354 136 167 I,425 M3 1.566 169 2,045 1,546 369 3,043 1996 2~~~339 341 132 1,:41,3 ~;1 1,493 397 2,76 1,492 397 2,178 1997 1442 346 1326 2,119 1,42 166 1I29 005 2322 1,629 4005 2,522 199 1795 375 2326 ,5 1, 795 373 1,7 13 2.476 1,975 413 2.076 Is9 1939 165 13526 2,10 1,939 165 2,33 021 2,445 2,133 421 2,405 2000 2094 390 1320 2,73 2.094 390 2,304 029 2,022 2,34 029 2,822 2001 2190 390 1242 ,73 2,199 590 2,19 429 2932 2,019 029 2:,952 2002 2w0o 390 119 2779 2,309 390 2,1540 429 5.,009 2.40 429 5,049 2003 200 303 1139 2,913420 590 2,447 029 3.172 2,667 039 3,172 2000 2504 390 1042 5,0 2.50" 390 2,800 429 3.30i2 2,600 029 3,302 2005 2673 3900 1026 5,13 2.673 390 2,940 429 3.416 21,940 429 3,438 2006 2604 So0 974 3,242 23,606 390 3.9067 429 3.362 3,067 029 3,562 2007 2947 390 926 3,39 2.97 390 3,241 429 3.733 3,241 029 5.733 2006 3094 390 66 ,54 3 5094 390 3.404 429 5,692 3,404 029 3.892 2009 3249 390 637 3.495 3,209 I90 3.574 029 4.059 3.574 429 40,59 2010 5011 390 795 3,635 3.011 390 3.5752 029 4.235 3,732 029 4.235 Te'llwzivn couth ates MMOI1t traf to l1lreFauI11 gouuro& tal tratfui l*.*~~~~~**~~~ P ~~cap of eSiating read pgeneated traffIce to capacity of new road Zatimated Ctoat and Renefita omIOUcOT "AVIMG van" RAFFI A2OM .......... -.-ODATID am1 WIC N*210 CM0 FACTOR CommT Him3 Diet Diet Ourf Sufw----.-------0----e- MR Wb Trace mOST (w Se) Web. Trceo Veb. Trceo Web Trace am1 go son WI son Old NeW 1995 1~~~~~-7.7; .17.7 0.24 0.16 1.00 1.00 1990 17.7 .17.7 0.26 0.16 1.00 1.00 1995 1,425 350 .0.49 0.2 0.0 3.5 0.2 0.2 0.0 0.9 0.28 0.17 1.00 1.00 1998 1.539 561 .0.74 0.2 0.0 3.6 0.2 0.2 0.0 5.2 0.30 0.19 1.00 1.00 1997 1,6a 360 .0.79 0.3 0.0 0.1 0.2 0.2 0.0 5.6 0.32 0.20 1.00 1.00 1996 1,795 375 .0.30 0.3 0.0 4.5 0.2 0.2 0.0 6.1 0.30 0.21 1.00 1.00 1999 1,939 383 40.90 0.3 0.0 4.6 0.2 0.3 0.0 4.5 0.37 0.22 1.00 1.00 2000 2.090 390 .0.94 0.3 0.0 5.2 0.2 0.5 0.0 7.0 0.39 0.20 1.00 1.00 2001 2,19 390 .1.00 0.3 %0 5.5 0.2 0.3 0.0 7.3 0.41 0.25 1.00 1.00 2003 2,309 390 .1.00 0.0 ~.a 5.7 0.2 0.3 0.0 7.7 0.42 0.26 1.00 1.00 2003 2,0620 390 .1.09 0.0 0.0 4.0 0.2 0.3 0.0 6.1 0.40 0.27 1.00 1.00 2000 2.046 390 .1.13 0.0 0.0 4.3 0.2 0.3 0.0 8.4 0.46 0.28 1.00 1.00 2003 2,:673 390 .1.16s 0.4 0.0 6.4 0.2 0.0 0.0 6.6 0.07 0.29 1.00 1.00 2006 3,606 390 -1.23 0.4 0.0 7.0 0.2 0.0 0.0 9.3 0.49 0.30 1.00 1.00 2007 2.947 390 .1.29 0.4 00 7.5 0.2 0.4 0.0 9.7 0.51 0.32 1.00 1.00 2008 3,090 3o0 .1.34 0.5 00 7.7 0.2 0.0 0.0 10.2 0.54 0.35 1.00 1.00 2009 3.209 590 .1.40 0.5 0.0 6.1 0.2 0.4 0.0 10.6 0.56 0.30 1.00 1.00 2010 3,411 390 .1.47 0.5 0.0 6.5 0.2 0.0 0.0 11.2 0.36 0.36 1.00 1.00 Reosamia EvajAaatio Congestlon ................ . . ....~~~~~~~~~~TI f"actor loar Net Proeeet Value 15.3 Ivan "ULM......a... Eccucuc Rate of Return 14.02 0.0 1.00 0.00 Mirt leer Rate of Return 11.92 0.6 1.00 0.05 0.7 1.05 0.10 0.6 1.15 0.35 0.9 1.50 1.00 1.0 2.50 0.00 - 112 - ANNEXIL ~k12_L CSINA GUNGWSNG PROVINCIAL HIGHWAY PROJECT Summary of First Packag goonomic Evaluations Starting 1990 rinancial Economic Chainage ADT Distance Cost Cost NPV ErRR FYRR Seq No Rt No. Rt type Location (km) (vah/day) (km) - 1Y millLon) --------- - ----- Group A: Paving Existing Gravel Roads 1 106 National Shaoguan 2151 725 15.2 7.7 6.9 6.6 20 17 2 106 National Shaoguan 2172 740 14.7 7.5 8.5 9.8 24 21 3 106 National Shaeguan 2262 914 14.0 9.5 10.9 10.9 22 21 4 106 National Guangzhou 2440 626 14.4 7.5 8.6 6.0 19 16 5 323 National Qinyuan 585 856 1.5 8.7 10.0 13.5 26 23 6 323 National Qin8yuan 533 651 22.2 10.9 12.5 10.8 22 19 7 1911 Prov. Qinryuan 162 1275 16.0 7.8 9.0 17.8 32 28 8 1923 Prov. Shanwei 12 1101 20.2 7.9 9.1 15.8 31 28 9 1924 Prov. Huiabou 2 1024 26.2 17.8 20.5 24.3 2e 2r 10 1989 Prov. Zhanjiang 49 1101 7.1 2.5 2.9 6.1 34 31 Subtotal 167.5 87.8 101.0 121.6 Average 898 25 22 Group B: Rehabilitating Existing Paved Roads 1 106 National Shaoguan 2201 2168 11.0 5.5 6.3 29.0 81 70 2 106 National Shaoguan 2221 2188 9.0 4.5 5.2 25.2 75 57 3 106 National Shaoguan 2230 2188 5.0 2.6 3.0 11.6 56 36 4 106 National Qingyuan 2335 2042 7.0 2.7 3.1 19.3 68 47 5 106 National Qinyuan 2383 3381 9.0 1.8 2.1 37.7 226 185 6 106 National Guangshou 2474 4043 8.1 4.2 4.8 38.8 113 87 7 207 National Maoming 3421 4578 21.0 8.9 10.2 128.3 151 119 8 207 National Zhanjiang 3624 4778 ;1.0 5.4 6.2 75.2 112 83 9 325 National Yanajiang 250 6722 6.2 2.7 3.1 36.0 117 80 10 325 National Y.ngjiang 264 3778 12.0 5.2 6.0 39.6 70 45 11 325 National Zhaniiang 445 4321 11.0 4.5 5.2 46.2 108 78 12 1925 Prov. Buizhou 2 5135 41.2 14.9 17.1 221.6 279 251 Subtotal 151.5 62.9 72.3 708.5 Average 4138 147 121 Group C: Upgrading Existing National Highways 1 206 National Pinyuan 2047 885 37.0 48.8 56.9 7.0 16 12 2 206 National Pinyuan 2137 685 18.8 30.3 35.3 15.0 16 12 Subtotal 55.8 79.1 92.2 22.0 Average 885 16 12 ----_-------------------------------------------------------___--------__----__--------------_-_------_--------- Total 374.8 229.8 265.5 852.1 Average 55 45 - 113 - ANNEX 1 Appendix 1 Page 1 CHINA GUANGDONG PROVINCIAL HIGHWAY PROJECT Procedures for Processing RIP SubDrojects A. Criteria for SubRroiect Selection 1. The criteria for obtaining the Bank's concurrence to include subpro- jects in the RIP are as follows: (a) the EIRR, calculated according to methodology presented in this annex, should not be less than 12 percent; (b) engineering design should be prepared according to the geometric standards indicated in Table 1.7 of this SAR and sound engineering practices; (c) the procurement procedures should be in conformity with Bank Guide- lines for Procurement, specifically paras. 2 and 3 of Appendix 1 thereof; (d) an Envisonmental Action Plan and, for subprojects with potential adverse impact on the environment or located in environmentally sensitive areas, an Environmental Assessment, prepared as outlined in Annex 3 to this SAR; and (e) a Resettlement Action Plan prepared in accordance with the proce- dures followed for the Foshan-Kaiping and Longgang-Tanxi Highways, as described in Annex 4 to this SAR. B. Subproiect Information for Bank's Review 2. The following information is required to be submitted to obtain the Bank's no objection to contracting each of the subprojects under the RIP. 3. Economic Evaluation. Subproject descriptions, economic evaluation information, and detailed calculations of the EIRR, should follow the format as presented in Annex I of this SAR.. 4. Engineering Desien. The engineering design should be prepared according to national standards as determined by MOC. The design documenta- tion and technical specifications need not be forwarded to the Bank but they should be made available to Bank missions on request in the field. 5. Biddina Documentation. The procurement procedure, and therefore bidding documentation required, would depend ci the size of contract. 6. Contracts with an estimated cost of $2.0 million or more would be awarded following Local Com-etitive Bidding (LCB) procedures and each contract - 114 - ANNEX 1 AT,Dendix 1 Page 2 would be subject to review prior to the issuance of invitation to bid. How- ever, since the HOF-approved sample LCB documentation would be used, the sub- mission of doeuments for Bank clearance, after tas submission of the first complete documentation, would be restricted to the following sections (which should be in English): Volume I - Cover sheets (about 3 pages) Volume I Section 0 - Invitation for Bids (about 2 pages) Invitation for Bids (about 2 pages) Instruction to Bidders (about 5 pages) Section 3 - Special Conditions of Contract - Data Sheet Conditions of Particular Application Section 4 - Contract Forms (iZ different from those in sample documents) Volume III - Appendix to Form of Bid Section 8 - Schedule of Supplementary Information (if different from those in the sample document) 7. Any deviation from the sample documentation or the first Bank- approved version of Volume I and Volume III should also be submitted to the Bank for each LCB subproject. A detailed bid evaluation report is required with recommendations to award the LCB contract to the lowest evaluated bidder. 8. Subprojects with an estimated contract cost of less than $2.0 mil- lion equivalent would be awarded on the basis of at least three bids from qualified contractors. After the Bank's cleauance of an English language standard bidding document, it would not be required to submit bidding docu- ments to the Bank for clearance prior to bidding. However, key information regarding the main features of each of the subprojects covered by the contract should be sunmarized in English indicating the characteristics of the works covered by the contract evaluation summary and the proposal for contract award (contractor, contract amount, duration of contract, etc.). 9. In case GPCD/GPHAB would prefer to use the sample LCB bidding docu- ment for procurement under direct invitation, the information to be submitted to the Bank prior to award of contract should be much the same as listed in para. 6 above for LCB. 10. Retorting on Enyironmental Analysis. Annex 3 of the SAR clearly defines the requirements regarding Environmental Analysis. An SAP should be submitted for each subproject based on the guidelines to be set up in the SEAP. - 115 - ANNEi I Ansendix 1 Page 3 11. For Category One subprojects, which are ncr expected to hart adverse environmental impacts, the RAP should be based on the guidelines established in the SEAP, indicating the appropriate measures which are reiuired to be taken in accordance with sound environmental practice for subprojects during project preparation and implementation. A tabular presentation, citing appro- priate clauses of the SEAP, would be sufficient. 12. For Category Two subprojicts, which could have a potentially adverse impact on the environment, an A is also required to provide the basis for a more detailed RAP. The EA/HAP procems is now weil established in the Province and the Guangdong Provincial Environmental Protection Bureau (GPEPB) and Guangdong Provincial Highway Design Institute are well acquainted with the Bank's requirements in this respect. The HA and HAP for Category Two subproj- ects could follow the pattern established for the Foshan-Raiping and Longgang- Tanxi Highway components of the project as presented in Annex 3 of the SAR, subject to adjustments depending on the complexity of the environmental pro- tection requirements. 13. Resettlement Action Plan. A RAP is required for each subproject which should be prepared following the format adopted for the Foshan-Kalping and Longgang-Tanxi Highway. (see Annex 4). C. Summal 14. .or each RIP subproject, the following documentation is required to be submitted to the Bank for clearance: (a) Prior to Issuance of Bidding Document Clearance of LCB bidding documents prior to issuance of invitation to bid (para. 6). (b) Prior to Award of Contracts: * economic evaluation summaries (para. 3); * recommendation for LCB contract award (for subprojects with an esti- mated contract cost of $2.0 million or more) (para. 6); * procurement information summary (for subprojacts with an estimated contract amount below $2.0 million) (para. 8); * HAP, and also an Environmental Asessment for Category Two subproj- ects (para. 10-12); and * RAP (para. 13). 15. The Bank's acceptance of the above set of documents and submittal of the signed copies of contracts would be the condition of disbursement. - 116 - Page 1 CHINA GUANGDONG PROVINCIAL HIGHWVAY PROJECT Hiahwav Pinancing Technical Assistance Outline Terms of Reference A. Obiectives 1. The objectives of the Highway Financing Technical Assistance are to identify and implement a revised system of highway financing which would ensure adequate funding for highway maintenance and construction activities in GP, but which would impose the least restraint on the development of highway transportation services. B. Background 2. The current system of highway financing is based on a complex struc- ture of vehicle and road user charges, including periodic (some annual, some monthly) vehicle license and use fees, tolls on selected bridges and highways, levies on road freight company revenues, and passenger tariff surcharges. These are supplemented by grants from the Province and from Central Government (which are mostly derived from vehicle purchase and import fees), bank loans (domestic and foreign), and contributions from local comunities and overseas donors. The road user charge structure is based on a system defined by cen- tral government and co-mon to all provinces, but it has evolved over time and now has distinctive features peculiar to Guangdong. 3. With the rapidly growing vehicle fleet making diiarply increasing demands on the road system, the time has come to rationalize the highway financing system and develop a more equitable user fee structure. A revised system of fees and usage charges, developed in line with modern practice, would ensure that revenues kept pace with the increasing demands for highway maintenance and construction, particularly as traffic grows and heavier vehi- cles (which are more damaging to highway pavements) become more prevalent. As well as reviewing the current tolling systems for high grade highways, the Province would also 'ike to examine other ways of raising capital for highway investment, including construction bonds and forms of shareholding in highway development enterprises. 4. HOC in Beijing, through the HSRI, has recently undertaken a review of highway financing in the Bank-supported "Road Funding Study"; the report on the study waa published in July 1991. The Road Funding Study focussed on highway funding requirements at National level; while providing a valuable foundation on which to base this technical assistance, the special nature of highway and economic development in Guangdong Province requires a thorough review of the assumptions and reconmendetions. For example, highway tolls make an important contribution to funding revenues in Guangdong Province, but were not considered significant in the Road Funding Study based on experience in less developed provinces. - 117 - Page 2 5. It is proposed to carry out the technical assistance in three stagess Stage 1: Preparation Stage 2: Discussion Stage 3: Implementation 6. Only Stage 1, the Preparation Stage, can be outlined in any detail at this time, but the scope of the subsequent stages must be considered e. that the Preparation Stage can be planned adequately. C. Stage 1: Preparation 7. The preparation stage would have two important functions: (i) to make a detailed review and analysis of the current financing system, and (ii) to identify, quantify, and evaluate alternative systems for future highway financing, and make recommendations to Government, Preparation Tasks 8. The various tasks of the preparation stage are outlined below. 9. Task 1: Identify Existina Financina Sources. Identify all existing sources of highway financing revenues. These will include the following vehi- Lie based fees: (a) Road Maintenance Fee (b) Added Vehicle Purchase Fee (c) Vehicle Use Fee (d) Transport Administration Fee (e) License Plate Fee (f) Annual Vehicle Examination Fee (including certification cost) 10. Other sources of financing to be identified should inzlude: (a) Road tolls (b) Passenger and freight tariff surcharges (c) Grants from central and local government (d) Loans from banks, domestic and foreign (e) Use of free labor to maintain rural roads (f) Other contributions 11. Finally, other revenues levied on vehicles and transport activities should be identified, including product taxes and excise duties on fuel and vehicle purchases/imports. 12. Task 2: Evaluate Existint Revenue Sources. For each source of revenue, the following aspects should be investigated and evaluated: (a) The basis for each fee/charge/toll and how it is calculated; (b) Annual revenues since 1980 - 118 - ANNEX2 Page 3 (c) The current allocation of net revenues to: (i) type of activity--maintenance (periodic and routine), construc- tion, administration; (ii) class of highway; (iII) level of government (central, provincial, municipal, prefec- tural, county, etc.); (iv) agency (e.g., maintenance units, PSB); and (v) geographic region. 13. Task 3: Assess Current Orranization and Staffing of Revenue Collec- tion Agencies, The structure and staffing of the agencies responsible for collecting revenues should be assessed from three viewpoints: (a) identifying numbers of staff by geographic location, and the extent to vhich this task is shared vith other related or unrelated tasks by the same agency; (b) from this nalysis, the direct and indirect costs of collecting revenues for each agency can be estimated, and therefore an estimate of the net revenues after administration costs are deducted; and (c) the extent to which provincial revenue collection is dependent on, or closely integrared with, revenue collection in other regions which would require external consultations or liaisong for example, Guangzhou Municipality. 14. Taok 4t Analyze Past HiahWaV Exnenditures. Assemble tables of past expenditures on highway construction and maintenance. The tables should be subdivided by subcategory of expenditure, separately identifying expenditures on administration. Breakdovns of expenditures by agency and geographic region should be made to identify accurately the agency and function of each category of expenditure. If revenue sources are linked to specific maintenance or construction activities, these links should be clearly identified in this task. l5. Task 5t Estimate Future HiRhwav Construction Funding Needs. Esti- mates should be based on the future road developmert program for the province. There must be some uncertainty about the size of this program which will depend on many other things besides financing availability. In particular, the future road program must be related to the growth in highway transport demand, and this will depend on the location and extent of ruture economic growth. Cortainly, all major highways would require a full evaluation to establish the scale and timing of investments. The capacity of the provincial road construction industry must also be a factor. Given these uncertainties, esti2ates should be made of a range of future investment levels, linking these to alternative economic growth scenarios, and (very broadly) to the related tequirements for additional highway capacity. - 119 - A=NEX 2 Page 4 16. Care must be taken that future expenditures on minor roads, which are not normally programmed far in advance, are properly accounted for. Also, if revenue sources (such as the road maintenance fee) normallv cover urban as well as inter-urban highway investments, then either allowance must be made for urban construction needs in projecting expenditures, or adjust- ments must later be made to the revenue estimates to deduct the funds normally allocated to urban expenditures. 17. Task 6: stimate Future Highway Maintenance Funding Needs. Funds for highway maintenance should be projected based only partly on past experi- ence. Since the size, weight and utilization of the vehicle fleet are all increasing significantly, a sharp increase in future maintenance needs can be expected. Projections of future maintenance needs should therefore take account of the strengths of existing pavements and the likely increases in wear caused by growing traffic volumes. This could most conveniently be done using the World Benk EDM, currently being calibrated as part of the prepara- tion of this pro4ect using data in the Guangdong RDB and PMS. As with con- struction funding needs, a range of projected funding should be established based on alternative economic growth scenarios. 18. Task 7: Pro1ect Revenue Parameters. Inveotigate and project para- meters which currently do, or which in the future could, provide a basis for highway user charging. These would include such things as: (a) Vehicle fleet growth, by class of vehicle, identifying the changing composition of the vehicle fleet, separately identifying locally manufactured and imports (b) Vehicle axle configurations and loadings--this should include a survey of axle loadings at a sample of existing location. (c) Vehiele utilization (d) Consumption of fuel, for both gasoline and diesel 19. For parameters which are expected to be particularly critlcal, in particular the vehicle fleet projections, it would be necessary to prepare a range of plausible forecast scenarios related to alternative growth rates of the economy (and possibly to different vehicle import policies), in order to later explore the implications for the highway financing systems proposed. 20. Task 8s Identify Alternative Highway Financina Svstems. A key task is to identify alternative financing systems to meet the projectioas of high- way funding need., and the likely devalopment of Guangdong Province. There are potentially three important and distinct components of future financing systems to be considereds (i) the scope for road user charaes which raise revenues (such as vehicle fees, fuel surcharges, tolls, etc.), (il) the extent to which the provincial highway authorities will be eligible for grants from either central or local government, and (iii) the scope for financial instru- ments such as foreign or domestic loans and construction bonds, which do not provide financing revenues as such but which permit current funding needs to be financed from future revenues. This leads to three subtasks: - 120 - ANNX 2 Page 5 21. Subtask 8(a): Road User Charaes. The range of options for road user charges must be identified and quantified, considering both existing and alternative sources of revenues. In particular, the potential role of fuel price surcharges must be explored. For each type of user charge identified, the following aspects must be considered and analyzed: (a) The basis for each proposed charge/fee/toll and the way which it is to be calculated; (b) The likely future revenues under the different economic growth sce- narios identified in an earlier task; (c) The distribution of revenue income between the various branches of central and local Government, noting the implications this has for future highway funding allocation. 22. A key issue is the relative efficiency and equity of the alternative user charges in relation to recovering the costs imposed on the highway system by different classes of vehicles. This should be examined by identifying separately the traffic-related and nontraffic related costs of road damage and repair, and further separating the traffic-related costs into those related to vehicle weight (or more properly axle weight) and those related to road occu- pancy. With this information, it is possible to devise a structure road user charges so that users pay according to the costs they impose e.g., higher vehicle fees for those high-axle-load vehicles which cause significant pave- ment damage. 23. Subtask 8(b): Grants and Loans. The availability of future grants from central and local government will depend to some extent on the structure of road user charges. For example, revenues from the Added Vehicle Purchase Fee (AVPF), currently levied on the purchase of new vehicles, are routed to MOC and come to the provinces 'n the form of grants for National Highway improvement projects, but the amount of grants to each province is not linked to the AVPF revenues raised in that province. Probably future grants should be treated as a residual in presenting alternative highway financing systems; that is to say, as the shortfall of revenues raised by other means compared to funding needs. 24. Subtask 8(c): Financial Instruments. The potential role for finan- cial instruments such as loans and bonds needs specialist advice. They would probably be directly linked to specific revenue earning projects such as high class highways and major bridges. Given the recent success of major projects in GP, these are likely to be useful sources of highway financing. 25. Task 9: Evaluate Future Hiahwav Financing SYstems. For each alter- native highway financing system considered, total revenues from all sources must be compared with projected highway funding needs. A base case must also be examined comprising an extension of the current system unchanged. 26. Ta&k 10: Evaluate Implementation Requirements. The requirements and implications for the agencies concerned in implementing a revised system of highway financing must be fully assessed before coming to recommendations for changes. This should include the need for staffing reductions, additional ANNEX 2 - 121 - Page 6 staffing requirements, retraining needs, and the period required for implemen- tation. 27. Task llt Prepare Recommendations. The final task of the prepara- tion stage will be to prepare a report describing the work accomplished and making a recommendation to decision makers. Preuaration Schedule and ReDorting 28. It is envisaged that the Preparation Stage could be completed in twelve months, considering the following three broad phasees: (a) analysis of past highway revenues and expenditures, and the current administrative organization and staffing (tasks 1-4); (b) projections of future funding needs, and analysis of alternative financing systems (tasks 5-8); and (c) evaluation of alternatives and preparation of r%commendations (tasks 9-11). 29. While there could be overlaps between each of the three phases, particularly (i) and (ii), it is envisaged that a report on the first phase (past trends and curront organization) be prepared after four months, and a report on the second phase (alternative projections) after eight months. The third phase would be concluded by a Final Report with recommendations. The Final Report shoulds (a) Summarize the findings on current highway financing system; (b) Present a range of alternative financing systems, together with their imp'Lications on administration and fund allocation, detailing the key assumptions and sensitivities to alternative growth projec- tions; and (c) Make recommendations on the financing system to be adopted by the province. Preparation Stage Organization 30. The team would comprise three groupst (a) staff from Guangdong Province familiar with the highway construction and maintenance program, and with the current highway financing system, who will assemble the relevant information on past expendi- tures and revenues, and on the current organization and staffing of highway financing, and who will provide the overall leadership for the Preparation Stage; (b) a technical team from the Xian Highway Institute to lead the analy- tical work of assessing the existing highway financing system, and developing and evaluating alternatives; and -122 - Page 7 (a) foreign experts to provide speci%list advice on the followingt (i) the economic theory and pract:'ca of highway user charging sys- tome; and (11) use of construction bonds and other form of financial instru- ments. 31. The work of the team could be controlled through a leading group led by the Director of the World Bank Financing Office under the GPCD and comprie- Ing members from the Provincial Planning Commission, Provincial Finance Department, the Price Control Department, and the Biegway Administration Bureau and Science and Technology Div'Bion of the GPCD. D. Stage 2: Discussions 32. The discussion stage cannot be programed in detail, and the time required will depend on the ecopO of the changes recomended. Diecussions will be needed at several levele of Government, including: (a) with different provincial departments including the Office of the Governor, GPPC, and Guangdong Provincial Finance Bureau; (b) with agencies and institutions in the province which would be affected by organizational and staff changes or training; (c) with Guangzhou Mhnicipality and other local governments in the Prov- Ince which have autonomy of any aspect of highway financing subject to change by the proposals from Stage 1; and (d) With Central Government In Beijing; specifically the hX)C, the Minis- try of Finance (MOP), and the SPC. 33. The outcome of the Discussion Stage should be the selection of an agreed highway financing system. E. Staae 3: ImDlementation 34. Once agreement has been reached on the ecope and nature of the changes to the highway financing system, detailed plane can be prepared for Implementation. These should have been worked out to eome degree of detail in the Preparation Stage to permit the proper evaluation of the alternatives, but further work will be required to finalize these plans. The key areas to con- sider are: (a) modification. needed to the ezistivS organizational structures, and possible need to create new organizational structures; (b) staff reallocation and training; (c) detailed timetable for Implementation; and (d) publicity to notify the public of the changes to be made. - 123 - ANNEX 3 Page 1 CINA GUAWGDONG PROVINCIAL HIGHWAY PROJECT Environmental Assesmeat. Mnaaement. and Monitorint Sumary for Highway Infrostructure Components of the Project A. Background 1. The proposed project is composed of financial support for the con- struction of two major new highways, the Foshan-Kaiping and the Longgang-Tanxi Highways, *nd programmatic assistance for the improvement of the provincial road network In GP through the RIP. This annex addresses environmental issues relevant to the physical components of the project and how the institutional and trainitg components may relate to perceived needs in the environmental sector of the Guangdong Provincial Government's administration of this project and of highway construction and operation in the province. 2. The policy and administrative requirements for environmental assess- ment of development projects in China followed during preparat'on and evalua- tion of an EA Include the following: (a) Management Guidelines on Enviromental Protection of Construction Projects of PRC, 19861 (b) Regulations for Engineering Design on Environmental Protection of Construction projects, 1987; (c) Directive No. 17 of the Ministry of Communications, PRC/1990, Man- agement Guidelines on Environmental Protection of Construction Proj- ectst and (d) Management Procedures for Environmental Protection of Construction Projects, NEPA, 1990. 3. A project proponent is required to undertake, directly or through a technical institution, an Initial Environmental Analysis for submission to the Provincial Environmental Protection Bureau at the prefeasibility stage of a highway proposal. For major infrastructure projects, the next step is the preparation of an EA. Only specially licensed institutions can undertake EAs In China. A completed EL would be submitted to the HOC for preevaluation, which is normally done by a panel of experts including representatives of thie National Environmental Protection Agency (NEPA). NEPA's clearance of the ELA is required for projects costing more than Y 200 million and for obtaining SPC's approval to go ahead with the engineering design for proposed highway projects. 4. The above-outlined internal procedures were followed for the envi- rormental analysis of the Foshan-Kalping and Longgang-Tanxi Highway. before the project was brought to the Bank for possible financial support. The ELs - 124 - ANNEX 3 Page 2 and environmental action plans for the cwo highways were submitted to the Bank before the preappraisal mission left for China in October, 1991. The Bank's review and comments on the EAs and RAPs were provided to the GP in the Pre- appraisal Aide Memoire. One result of this review led to the conduct of a detailed wetland survey of the Lufeng Marsh area, which is near a section of the Longgang to Tanxi Highway. This study was completed before project Appraisal, and expanded the EA prepared for this subproject. This information was incorporated into the EA Summaries transmitted, as required by the Bank's OD 4.0, before the Appraisal Mission left for China. A final RAP incorporat- ing the Bank's commente on the earlier draft, was submitted to the Bank on January 17, 1991. 5. The assessment of environmental impact of subprojects in the Road Improvement Program would be ongoing over the life of the loan. Assessments for the first batch of these subprojects would be available for Bank review before loan negotiations. B. The Foshan to KaiDinR HigLhwav 6. An EA of the Foshan-Kaiping Highway was prepared by the Shanghai Ship and Shipping Research Institute and was submitted to the GOC in December, 1990. It has been ascertained that the highway would not affect ecologically sensitive areas, and if appropriate actions.are taken, should not have adverse impact on the environment. Based on the EA's findings and subsequent to dis- cussions between the representatives of GP and Bank staff, an EAP was prepared specifying the measures required for eliminating or mitigating potential adverse effects on the environment during the construction and operation of the two highways. Baseline Environmental DescriDtion 7. ToDooraphv and Climate. The corridor along the right of way (ROW) lies to the just south of the north tropic, and belongs to the south subtropi- cal monsoon oceanic climate group. The prevailing winA is from the south during the summer, and from the north during winter months. The annual aver- age temperature is 21.6 degrees centigrade, average relative humidity is 83 percent, and annual rainfall is 1,619-1,800 mm. The ROW is divided by the Xijiang River, with the northern part running though the Pearl River Delta. This area is characterized by soft soils overlain by cultivatable land. The southern section of the proposed highway passes through both flat and hilly land, starting from the Chen Mountain. It then passes by several villages, crosses the Guang-Zhan Highway and terminates at Shuikou, on the border of Kaiping County, meeting the Grade II highway in Kaiping County that was rebuilt and widened in 1989. 8. Air Qualitv. The new pollution source in the area of the ROW likely to result from highway construction and operation is exhaust gas from vehi- cles. Dust generated during construction is also a potential environmental issue. The EA therefore established baseline air quality conditions based on analysis of air samples along the ROW for the following parameters: CO (car- bon monoxide), NOx (nitrous oxides), TUC (total hydrocarbons), TSP (total sus- pended particulates-dust), Pb (lead). Results indicated that no pollutant -125- ANNEX 3 Page 3 exceeded the GOC national standards, based on daily mean concentrations (Table 1). The atmospheric stability classification is generally neutral, and the frequency of temperature inversion is over 50 percent, with would tend to inhibit quick dispersal of pollutants. 9. Of particular interest was lead levels in plants and soils along the proposed ROW. The objective was to determine background levels of lead in edible plants which would then serve as a point of comparison when estimating likely impact of lead emissions from vehicle exhausts once the highway became operational. Lead levels were found to be within public health standards, although somewhat elevated in plants and soils within 30 m of major roads in the study area. 10. Noise Quality. A total eight cross sections were analyzed for back- ground noise during the EA. The objective was to establish background levels of noise along the ROW and at noise sensitive locations such as schools and residences. The noise levels obtained were within the GOC standards (Table 2), The reference sensitive point (perceived as the most noise sensitive area) at Jili High School does not exceed the class II hybrid area standard, and the school is 300 m from the ROW. I1. Hydroloav and Water Qualitv. The north section of the Foshan to Kaiping Highway is close to the network of waterways in the Pearl River Delta. Rivers such as the Dongpin, Fengliang, Jili, Beijiang and Jinjiang all flow from northwest to southeast. The Dongpin and Xijiang are classified as "water protection rivers" and are near the highway ROW. 12. The pH, BOD5 (five day biological oxygen demand), COD (chemical oxygen demand), SS (suspended solids), Pb, and oil/grease values from samples taken from the Dongpin, Fegjiang and Xijiang Rivers suggest that waters from these rivers fall with class I, II or III standards (Table 3). 13. Cultural and Archeological Aspects. The ROW does not pass near or through areas having known cultural or archeological significance. Imoact Analysis 14. It Was determined that the most significant impacts that could result from construction and operation of the Foshan to Kaiping Highway would include: (a) Physical destruction of natural habitat, cultural relics and his- toric sites, homes, businesses, and infrastructure within the ROW; (b) Pollution resulting from vehicle exhaust emission caused by increased vehicle movements along the highway; (c) Increased noise in the area of the ROW because of construction activities and because of increased traffic volume moving at speed during highway operation, and its impact on areas of human habita- tion and congregation; - 126 - Page 4 (d) Potential pollution of surface and ground wators during construction and operation (particularly highway service areas). 15. The most likely and significant of the expected atmospheric impacts relate to duset caused by earthworks, and material transport. Nolse Is also a potential problem, especially during evening and early morning houro. 16. Noise within 60 m of the ROW is likely to exceed the allowable lim- its by the year 2010. After 1996, some village areas and schools would already be impacted by noise unleoss protection measures are taken. 17. There is expected to be some runoff from bitumen sealed road sur- faces. This runoff may contain short-chain hydrocarbons and oil that may be troublesome to farmlands and fish ponds. Drainage I. to be designed to avoid this problem. 18. Ground vibrations caused by vehicle movement are not predicted to be a problem, although models suggest that vibration standards may be exceeded 10 m beyond the road sides after the year 2010. 19. Traffic along public roads could become congested if used as access into the ROW during the highway construction period. Environmental Management Plannina 20. Route Location. The ROW was selected from 6 alternatives. The basis for route selection of the chosen alternative route was on economic and technical grounds, including onvironmental considerations. Established cri- teria in route selection includedt (a) Minimize the area of good quality agricultural land needed for the subproject; (b) Circumvent all archeological sites; (c) Avoid cities, towns and large residential areas; (d) Avoid, as much as possible, engineering problem such as soft soil. and steep topography that carry environmental burdens; (e) Avoid isolation of cormunities or communities from farmland. 21. Cultural/Archaeoloalcal Issues. It is GOC law J/ that any cul- tural relices discovered in a construction site must bJ removed by the Provin- cial Cultural Relics Research Institute before construction can reoummence. I/ The National Cultural Relics Protection Law and the Guangdong Provinlcal Relics Implementation Clause of this law would require all construction activities to cease if an antiquity site was discovered during expreeway construction. -127- ANNEX 3 This is reinforced by the requirement for Contractors to adhere to clause 27.1 of The Conditions for Works of Civil Engine3ring Construction of FIDIC (which is included in the Contractor Tender). There are no known sites of cultural or archeological importance within the right of way (ROW) of the highway. 22. Hydrologv and Water Qualitv. The design of the highway would allow unhindered passage of a 1 in 100 year return flood, with major bridges being designed to pass 1 in 300 year return floods (local flood prevention stan- dard). Contractors would be required to construct and satisfactorily maintain septic tanks for offices, temporary accommodation and other sites containing ablution facilities. Storage (especially fuels), warehouses, laydown areas are to be sited away from surface waters and provided with ring drains and soak pits to prevent accidental spills from reaching surface waters. 23. During construction of road drainage works, the Contractor shall construct temporary by-passes to facilitate continued use of irrigation chan- nels and drainage. 24. Air & Noise Oualitv Issues. Control of dust during construction would consist of staging of work to avoid unnecessarily exposing soils to wind and rain erosion. During dry weather, water is also to be spread over remolded and exposed soils at least 2 times per day, up to a maximum of 4 times per day, at the diecretion of the Joint Supervision Department. Asphalt mixing plants must be between 500 to 1,000 m from areas of human habitation and congregation if located upwind of these areas. Construction activities in areas of human habitation and congregation are to be limited to between the hours of 6 am and 10 pm if noise production is likely to be excessive. Cement-bound aggregate mixing plants, materials stores and warehouses, stone crushing and screening machines are to be set up far from areas of human habi- tation and congregation. The cost of constructing noise barriers to control operational noise levels are to be added to the highway tender document. These noise barriers are to be constructed at 18 locations along the Foshan- Kaiping highway, with total length being 2,910 m (Table 4). Where necessary, special graded pavement would also be used to minimize tire noise caused by heavy traffic along sensitive areas along the highway. It was further recom- mended that the speed limit near populated areas should be no more than 60 km/hr. 23. It was determined from numerical modeling that pollutants sourced from vehicle exhausts would be only a minor issue, as the model and existing literature suggests that deposition of problem ions such as lead is very lim- ited and localized. Trees would be planted to minimize these problems outside tho area of the ROW. 26. Traffic VEnsAement Durint Construction. A survey of public roads that would be used as access into the construction sites of the highway were undertaken by the GP. The following were identified as places that may have traffic problem during subproject construction: (a) Contract I (kO+130-klO+500): Fenjiang Bridge, Foshan Bridge, Luocun, Zhangehal - 128 - AM= 3 Page 6 (b) Contract II (klO+500-k28+000): Nanzhuans, Shiwan, Lechong, Xiqiao bridge, Shantou and Longshang (c) Contract III (k28+000-k41+000)s Jiujiang town, South bank (Shaping Bank) of Jiujiang Bridge at k41; (d) Contract IV (k41+000-k8O+000)s At juncture of Zhishan town, Heshan County and Shuikou town, Kaiping County (juncture of end of the project and Guang-zhan highway). 27. The Contractor and the Ministry of Public Security is responsible for maintaining regular control of these trouble areas. The environmental monitoring program includes evaluation of effectiveness of traffic management. 28. Prevention of traffic problems and accidents would also be managed during highway operation. Signs, lane marking, traffic surveillance and con- trol systems, emergency telephone system would be established according to National Laws and Regulations. 29. Miscellaneous Management Actions. All borrow and quarry sites to be used during construction of the highway have been surveyed by the Provincial Environmental ?rotection Bureau. A list of the areas that can be exploited for highway construction in an environmentally acceptable way has been pre- pared and would be attached to construction tender documents. The tender would specify that only material from environmentally acceptable quarries can be used. New quarries and borrow pits specifically opened by the successful contractors are to be located in uncultivatable land and barren hillo, and rehabilitated after use. 30. If the Contractor uses existing Provincial and rural roads as access into the construction site, the Contractor shall maintain the road and manage traffic on it. Costs of temporary roads, or maintenance of existing public roads and traffic management should be in costs of the engineering works, and cannot be meas ired separately, except for those that are specifically men- tioned in the Bill of Quantity of Works. 31. Transport of dangerous goods along the highway must first be approved by the public security, fire protection and traffic departments. An emergency team would be established. The head of this team shall be she GPFC, and the Deputy Head from the GPEPB. Members of the team would be drawn from the Environmental Surveillance Centers, the Fire Brigade, and Departments of Chemical Industry and Sanitation. A contingency plan for handling hazardous materials accidents has been prepared by the GPPC. 32. Table 5 presents a summary of environmental management measures required, along with the or%2nization responaible for implementing or monitor- ing effectiveness of the management measure. Where the management measure deals specifically vith construction and the construction contractor, the relevant clause in the construction tender document(s) is also listed. Table 6 is a summary list of investment proposed for environmental protection. - 129 - ANNEX 3 Page 7 C. Lonegann to Tanxl Hihkway 33. An EA of the Longgang-Tanxi Highway was prepared by the Highway Scientific Research Institute of the Ministry of Communications and was sub- mitted to the GOC in November, 1989. It has been ascertained that the highway would not affect ecologically senuitive areas, and if appropriate actions are taken, should not have adverse impact on the environment. Based on the EA's findings and subsequent to discussions between the representatives cf GP and Bank staff, an EAP was prepared specifying the measures required for eliminat- ing or mitigating potential adverse effects on the environment during the construction and operation of the two highways. Baseline Environmental Conditions 34. To0ograyhv and Climate. The Shenzhen to Shantou Highway (of which the Bank supported Longgang to Tanxi Highway is a part) is 286.7 km. It passes through one city and six counties (Chantour city, Huiyang County, Huidong Cc aty, Haifong County, Lufeng County, Hu.ilei County, Chaoyang County. The route is located in the south of the Tropic of Cancer and the climate is characterized by subtropical monsoon climate with high temperatures and fre- quent rainfall. Average rainfall is between 1,514 and 2,399 mm, falling mainly during April to September. During winter, northerly winds prevail, while summer winds come mainly from the east. Most storms occur during May to September. Greatest monitored wind speeds were in Shantou and reached 52.1 mjsecond 35. The highway is located near the southeast coastal line of Guangdong Province. The area is hilly with more light rolling areas and lesser areas of flat terrain. The mountains are mainly located in the border between Hidong County and Haifong County. The rolling areas occupy most sections of the ROW. Normal elevation is about 100-300 m above sea level. 36. Air Quality. The area through which the ROW passes is mainly agri- cultural, but the nature of the terrain has resulted in relatively low popula- tion densities. The EA sampled and arslyzed baseline air quality through determination of CO, NOx, THC, TSP con,entrations. As expected, the existing air quality is good and results indicate that the area along the ROW generally conforms to Class I National Standards (highest level). 37. Noise Quality. The EA established 7 surveillance areas for noise along the ROW. The sites chose were representative of the ROW as a whole, but were also weighted to include areas particularly sensitive to noise such as schools and residences. The results of the survey indicated that present noise along the ROW fall within the "mixed criteria" of the second category of the national noise standards (GB 3096-82, see Table 2). 38. Hydrologv and Water QualitZ. The proposed route crossos 13 large rivers. However, the route usually crosses near the mouths of these rivers and little downstream impact is expected. The pH, BOD5 (five day biological oxygen demand), COD (chemical oxygen demand), SS (suspended solids), Pb, and oil/grease values from samples taken from the Luohe, Lian-jiang and Da-hao Rivers suggest that these waters fall within class I, II or III standards - 130 - ANDLK 3 Page 8 (Table 3). Ground waters along the ROW were also analyzed for dissolve oxy- gen, ammonia nitrogen, cyanide, mercury, chromium and cadmium and found to be within drinking water standards. 39. Cultural/Archeological Issues. The highway does not pa.. through scenic, recreation, cultural relies protection or animal and botanical protec- tion areas. The residential areas (including school.) and rivers are the main ecological focus of Impact assessment. 40. Ecoloaical Issues. The ROW generally follows a coastal route, and traverses through or near a number of wetland areas. Almost all of these areas have already been converted to ricaland. However, the Lufeng wetland is recognized as an area important to local and migratory birds. The EA was expanded to include a survey of wetlands (particularly the Lufeng wetlands that are near one section of the highway ROW). This was completed and deliv- ered to the Bank before the Appraisal Mission departed for China. The results of this survey were that the proposed highway would have little or no physical effect on the Lufeng wetland or the birds using the area. Imoact Analysis 41. It was determined that the most significant impacts that could result from construction and operation of the Longgeng to Tanx. section of the Shenzhen to Shantou Highway would includes (a) Physical destruction of natural habitat, homes, businesses, and infrastructure within the ROW; (b) Pollution resulting from vehicle exhaust emission caused by increased vehicle movements along the highway; (c) Increased noise in the area of the ROW because of construction activities and because of increased traffic volume moving at speed during highway operation, and its Impact on areas of human habita- tion and congregation; and (d) Potential pollution of surface and ground waters during construction and operation (particularly highway service areas). 42. The most likely and significant of atmospheric impacts relate to dust caused by earthworks, and material transport. It is xpected, however, that dust levels within 40 m of the side of the road would meet national stan- dards on most days. Noise is also a potontial problems, especially during evening and early morning hours. 43. Noise in section 5 of the highway is predicted to exceed allowable limits. 44. Atmospheric pollution from CO is expected to be within limits until the year 2020. Level of NOx in the atmosphere are likewise predicted to be acceptable until 2010. It is predicted that after these detes, traffic volume - 131 - Page 9 would cause these compounds to be present in concentrations above national standards, unless management measures are taken to control them. 45. There is likely to be some runoff from bitumen sealed road surfaces. This runoff may contain short-chain hydrocarbons and oil that may be trouble- some to farmlands and fish ponds. Drainage is to be designed to avoid this problem. 46. Ground vibrations caused by vehicle movement is not predicted to be a problem, although models suggest that vibration standards may be exceeded 10 m beyond the road sides after the year 2010. 47. Traffic along public roads could become congested if used as access into the ROW. Traffic analysis indicated that the following sections of pub- lic roads are likely to become congested during construction of the highways (a) Baihua to Huangmaoling Section of the Longgang to Huidong Highway within Huidong County; (b) The Houmen to Heilong Town Section of the Guangzhou to Shantou High- way within Haifeng County; (c) The Danshui to Shatian Section of the Longgang to Huidong Highway within Buiyang County; and (d) The Gangwie to Houmen Section of the Guang-Shan Highway within Haifeng. 48. The highway is not likely to impact wetland areas. This has been verified by experts from the Zhongsehan University and South China Research Institute of Rare Animals. The highway design contains sufficient drainage structures to avoid rise or fall of surface vater levels In wetland areas. The main habitats along the highway are located at, or near, river mouths, the gulf and the Gongping Reservoir in Lianhua mountains. All are far from the highway ROW. Environmental Management Planning 49. Hvdroloav and Water Qualitv. The design of the highway would allow unhindered passage of a 1 in 100 year return flood, with major bridges being designed to pass 1 in 300 year return floods (local flood prevention stan- dard). Contractors are to construct and satisfactorily maintain septic tanks for offices, temporary accommodation and other sites containing ablution facilities. Storage (especially fuels), warehouses, laydown areas are to be sited away from surface waters and provided with ring drains and soak pits to prevent accidental spills from reaching surface waters. 50. During construction ci road drainage works, the Contractor shall construct temporary bypasses to facilitate continued use of irrigation chan- nels and drainage. - 132 - ANNEX 3 Page 10 51. Route Location. The route was selected from analysis of five alter- natives. The basis for route selection of the chosen alternative route was on economic and technical grounds, including environmental considerations. Established criteria in route selection included: (a) Minimize the area of good quality agricultural land needed for the subproject; (b) Circumvent all archeological sites; (c) Avoid cities, towns and large residential areas; (d) Avoid, as much as possible, engineering problems such as soft soils and steep topography that carry environmental burdens; (e, Shall avoid isolation of communities or communities from farmland. 52. Cultural/Archaeological Issues. It is GOC law that any cultural relics discovered in a construction site must be removed by the Provincial Cultural Relics Research Institute before construction can recommence. This is reinforced by the requirement for Contractors to adhere to clause 27.1 of The Conditions for Works of Civil Engineering Construction of FIDIC (which is included in the Contractor Tender). There are no known sites of cultural or archeological importance within the ROW of the highway. 53. Social Issues. A total of 185 underpasses are provided within proj- ect design for local passage of vehicles and pedestrians. 54. Air gualitv Issues. Asphalt mixing plants are to be located at least 1,000 m from areas of human habitation and congregation. Earthvorks and exposed soils are to be watered at least twice daily during dry weather, up to a maximum of 4 times daily, at the discretion of the Joint Supervision Team to control dust. 55. Noise Issues. A strip 50 m wide along each side of the ROW would be reserved as a buffer zone and planted with trees to minimize operational noise levels along the highway. Where identified as necessary, this would be aug- mented by additional vegetation belts and physical sound barriers. The tender would include 820 m of physical sound barrier construction (Table 7). Con- struction activities in residential areas are to be restricted to between 6 a.m. and 10 p.m., at the discretion of the Joint Supervision Team. 56. Traffic Issues. Management of traffic would be by combined traffic maety and control teams, which shall consist of the county traffic adminis- cration and town government. During construction, traffic control personnel shall be sent to the identified trouble spots by the county traffic adminis- tration and the Contvactor, and these persons would be in charge of traffic contrLl in these areas. Management measures would includes (a) Limit the number of temporary intersections; (b) Placo warning signs indicating locations of temporary intersections; - 132- -@B_3 Page 11 (c) Contractors and county traffic administration office to assign staff to control traffic at congasted intersectional (d) County traffic administration offices to supervise traffic control personnel; (e) Contractors would be directed to limit vehicle activity during iden- tified peak traffic periods; (f) Vehicle parking and street vender control to be exercised in traffic sensitive areas; and (g) Where necessary, construct temporary access roads to avoid identi- fied traffic-seneitive sections on public roads. 57. Miscellaneous Management Actions. All borrow and quarry sites to be used during construction of the highway have been surveyed by the Provincial Environmental Protection Bureau. A list of the areas that can be exploited for highway construction in an environmentally acceptable way has been prepared and would be attached to construction tender documents. The tender would specify that only material from environmentally acceptable quarries can be used. New quarries and borrow pits specifically opened by the successful contractors are to be located in uncultivatable land and barren hills, and rehabilitated after use. 58. If the Contractor uses existing Provincial and rural roads as access into the construction site, the Contractor shall maintain the road and manage traffic on it. Costs of temporary roads, or maintenance of existing public roads and traffic management should be in costs of perennial engineering works, and cannot be measured separately, except for those that are specifi- cally mentioned in the Bill of Quantity of Works. 59. Transport of dangerous goods along the highway must first be approved by the public security, fire protection and traffic departments. An emergency team would be established. The head of this team shall be the GPFC, and the Deputy Head from the GPEPB. Members of the team wouzld be drawn from the Envirormental Surveillance Centers, the Fire Brigade, and Departments of Chemical Industry and Sanitation. A contingency plan for handling hazardous materials accidents has been prepared by the GPFC. 60. Table 8 presents a summary of environmental management measures required, along with the organization responsible for implementing or monitor- ing effectiveness of the management measure. Where the management measure deals specifically with construction and the construction contractor, the relevant clause in the construction tender document(s) is also listed. Table 9 is a summary list of investment proposed for environmental protection. - 134 - ANX 3 Page 12 D. Environmental Monitorint of the Foshan-KaIsina and Lonxg&aa-TanZi H-itahwas 61. The importance of controlling environmental impacts during construc- tion and operation haa led the GPFC to establish an in-house environmental unit (GPFCEU) with branch environmental protection departments (EPD) for each of the two major highway subprojects. The GPFCEU serves an administrative, quality control, and management liaison role. The two EPDs are responsible for direct environmental monitoring and management. Four technical staff have already been acquired for the central, Guangzhou based, GPFCEU. The two EPDs would each have 10 technical staff. The environmental monitoring activities of the GPFC are designed to support and provide information that would improve the ability of the Joint Supervision Team to control construction of the high- vayg and to ensure that the highways operate in an environmentally acceptable manner. The general objectives of the GPFCEU aret (a) To ensure that environmental laws and regulations of the PRC are followed during construction and operation of the highways; (b) To improve onvironmental protection activities of the GPFC; (c) To conduct daily environmental monitoring along the highway align- ment to assist the Joint Supervision Team with proper management of construction, and especially to avoid disturbance that may result from constructionl (d) To ensure that social benefits are taken into consideration during construction and operation; (e) To control and clean-up any hazardous materials transportation or accidental spills along the highway; and (f) To Improve aesthetic aspects of the highways. 62. Monitoring of construction activities within section 4 of the Longgang to Tanxi highway (which would be subject to advance contracting and be retroactively financed) would require interim environmental monitoring measures to be taken, as training, institutional strengthening and equipment to be provided under the Guangdong Provincial Highway Project would not be available when construction starts on this section. The GPFC therefore intends to contract the various county, and as needed, prefecture Environ- mental Protection Bureau (EPB) to supply monitoring services until such time as the EPDs can be established. The staff and equipment contracted from the local EPBs would come under the control and direction of the GPFCEU. 63. Suwmary Table 10 is a provisional list of monitoring equipment to be provided under the loan. A diagram of the structural organization of the GPFCEU, and lines of authority for environmental monitoring of the two high- ways is presented In Chart 3. - 135 - ANNE]! 3 Page 13 S. Znvironment_l Asseosment of the Road ImDrovement Program 64. The RIP would Involve Bank financing of provincial road improvement projects which would not be Identified or prepared before the Guangdong Pro- vincial Highway project is brought to the Bank's Board for review. This pro- gramiatic approach to the provincial road component of the project requires that an environmental assessment process be developed to ensure that subproj- ects submitted to the Bank for funding under the loan include adequate consid- eration of possible subproject impact on the environment. 65. The RIP component of the project would therefore require the prepa- ration of a RA. This BRA would: (a) Present a screening process designed to identify subprojects having potentially significant issues that would need to be addressed in a subproject specific EA from those that would be unlikely to have significant Impact on the environment; (b) Present a general assessment of the kinds of impacts that might be associated with the different types (road widening, pavement improvements traffic bottleneck alleviation, etc.) of rural road subprojects; and (c) Develop a SLAP detailing actions that would be implemented to elimi- nate, minimize to acceptable levels or mitigate the minor impacts identified in the SEA. 66. The objective of the environmental screening in the SEA would be to separate the RIP subprojects into one of two categories: Cateagorv One: Subprojects that only include improvement and/or rehabili- tation of roads within an existing ROW, minor realignment that might be needed for localized improvement of a traffic "bottleneck", and those not within or affecting environmentally sensitive areas I.e.* subprojects with no potentially significant environmental impact; Categorv Twot Subprojects that require substantial widening and/or acquisition of new ROW. This would primarily include roads on new align- ments (especially new penetration roads) and, in general, subnrolects with gotentiall adverse imnact on environmentally sensitive 2/ areas. V/ An environmentally sensitive area would include zones of significant human habitation (urbanized areas, residential concentrations, hospitals, schools, commer&ial and market complexes), ecologically important zones such as wetlands, forests, or any area relatively unaltered by humans (i.e., an area that Is dtecribed by the GOC National/Provincial Environ- mental Protection Bureau as being in a unatural" state), archeologi- cal\historic\cultural sitest and terrain with slope greater than 50 per- cent--especially when soils are erodible and near surface waters. I I - 136 - ANNEX 3 Page 14 67. All subprojects would have an EAP attached as one of the preparation sections describing the project. Por category one subprojects, the elements of the RAP would be drawn directly from the SEAP, and not prepared on a sub- project specific basis. Category two subprojects would require a complete EA and a detailed subproject-specific EAP. 68. The generic SEA is possible for the majority of subprojects within the RIP because the subproject types proposed are simple, with few and easily identifiable impacts. Most impacts that may result from a subproject would therefore be relatively easy to identify and remedy. However, where a new ROW is required, or when a subproject is to be implemented within an environmen- tally sensitive area, a subproject specific EA with detailed EAP would be required. Preparation of the SEA/SEAP would be a collaborative effort between the Guangdong Provincial Highway Design Institute and the Guangdong Provincial Environmental Protection Bureau. The Design Institute would provide details regarding specific project activities within each type of rural road subproj- ect to be included in the RIP, and the Environmental Research Institute would identify the likely impacts expected from each of these individual activities. The SEA/SEAP is to be sent to the Bank for review at least one month before loan negotiations. Disbursement on anv subgroiect in the RIP would be depen- dent on Bank review of the EA and EAP. 69. The responsibility for preparing and implementing the SEA and its guidelines rests with GPHAB. 70. RIP Environmental Monitoring. Since national and provincial and rural roads supported by the RIP are under the control and direction of the GPHAB, an environmental monitoring program that is separate from that proposed for the two highways would be needed. The Province therefore intends to con- tract staff and lease equipment from local (county and prefectural) Environ- mental Protection Bureaus in which RIP subprojects are to be implemented. The contracted EPB staff would supply environmental monitoring services for RIP subproject construction and operation. 71. These contracted staff would come under the administrative authority and control of a dedicated coordinator within the Prefectural-level RIP super- vision office of the GPHAB. Prefectural environmental coordinators would, in turn, report to a dedicated environmental coordinator in the provincial super- vision office of the RIP program. The contracted EPB staff would effectively transfer to the GPHAB for the length of the contract and become part of the supervision organization. They would undertake an environmental monitoring program designed to determine if environmental management actions are effec- tive and if any environmental changes in the areas around RIP subprojects are attributable to unexpected road impacts. The information from this monitoring program, along with any needed recommendations, would be regularly transmitted tot he supervising engineer so that appropriate actions could be taken. The local Environmental Protection Bureaus, themselves, are responsible for moni- toring of the RIP. 72. Because an outside organization would be contracted to supply per- sonnel and equipment to the supervision organization of the GPHAB, the Bank would review the terms of reference, draft contracts and written indications - 137 - ANRM 3 Page 15 from county and Prefectural Environmental Protection Bureaus involved that they are willing to enter into agreement with the GPHAB to supply the speci- fied services. F. EZnvioWmental Training 73. Approximately 1.5 person months has been allocated for environmental training. This would include awareness training for administrators directly and indirectly (i e., those leading environmental groups and groups affected by results of monitoring--including supervision groups and design organiza- tions) responsible for environmental monitoring organizations to be formed within the GPVC and GPHAB, and staff that might be temporarily seconded to do environmental work (such as staff from the Supervision Department# and the Highway Scientific Research Institute). - 138 - gMR 3 Page 16 Zskl. Li ATMOSPHERIC QUALITY STAIDARDS (GB 3095-82; Petching Pollutant time Class I Class II Class III (St.) (at.) (at.) SPH Daily average 0.15 0.30 0.50 Any time 0.30 1.00 1.50 TSP Daily average 0.05 0.15 0.25 Any time 0.15 0.50 0.70 $02 Annual daily avg. 0.02 0.06 0.10 Daily 0.05 0.15 0.25 Avg. any time 0.15 0.50 0.70 NO. Daily average 0.05 0.10 0.15 Any time 0.10 0.15 0.30 CO Hourly average 4.00 4.00 6.00 10.00 10.00 20.00 03 0.12 0.16 0.20 - 139 - Pae 17 Mla*. 2. AMBIENT NOISE STANDARDS FOR URBN AREAS (GB 3096-82) (unitt Leq (dB)] Area Applied Daytime Night Remarks Special residential 45 35 Designated as quiet Rebdential and 50 40 Purely Residential educational quarters Educational and Institutional Areas Category I mixed area 55 45 Ordinary Mixed Residential with Commercial Areas Downton, Category II mixed area 60 50 Concentrated Commercial, and Mixed Industrial and Residential Areas Concentrated Industrial area 70 55 Both sides of traffic arteries 65 55 Traffic :' 100 veh/h 7ila.. 3: CLASSIFICATION OF WATER QUALITY Classification lot Class 2nd Class 3rd Class 4th Class 5th Class Composite Index <0.25 0.25-0.5 0.5.0.75 0.75-2.0 2.0-3.0 I ~ ~ ~ ~ . .. - 140 - ANX 3 Page 18 Table 4: LOCATION AND LENGTH OF PHYSICAL SOUND BARRIERS REQUIRED FOR THE FOSHAN-KAIPING HIGHWAY No. Location Start/End Length Remarks (m) 1. Lianxin Area kO+300 to kO+480 180 lft of rd 2. Lianxin Viaduct kO+480 to kO+630 100 lftlrt of road 3. Liazxing Viaduct kO+750 to kO+850 200 Ift/rt of road 4. Zhangeha Viaduct k5+900 to k6+180 680 lIft/rt of road 5. Xin Village k6+490 to k6+540 50 rt of rd 6. Hefen Village k12+390 to k12+450 120 lft/rt of road 7. Beijiang Extra Large Bridge k18+450 to k18+520 70 lft of rd 8. Lanxin Village k19+250 to k19+420 340 lft/rt of road 9. Nanjing School k48+715 to k48+880 165 lft of rd 10. Tonvu Village k53+625 to k53+725 100 lft of rd 11. Zhangwu Village k53+640 to k53+780 140 rt of rd 12. Juyuan Village k57+050 to k57+150 245 lft/rt of road 13. Yongfen Village k60+220 to k60+300 80 lIft of rd 14. Zintianli Village k61+150 to k61+220 70 lft of rd 15. Tangchenzu k75+140 to k75+260 120 lft of rd 16. Hexi Village k77+240 to k77+300 60 lft of rd 17. Qiaognag Village k78+020 to k78+080 60 lft of rd 18. Dongbian Village k79+935 to k80+065 130 lft of rd Total 2.910 - 141 - Page 19 Table As SUHMARY O THE MAIN ELEMENTS OF TEE ENVIRONMENTAL ACT`OR PLAN FOR THE FOSHAN TO KAIPINC HIGHWAY Enviroamental Required Responsible Issue action entity Remarks A. Preconstruction & De lrn Phaee 1. Route Selection Alignment selected from OEDI, GPEPB 6 alternatives, land acquisition and Impact on residential areas has been reduced as much as possible, historic sites avoided 2. Impact on 98 underpasses for vehicle, GHDI mobility tractor and pedestrian, and adequate access to the expressway within design 3. Excessive noise A 60-m strip on both sides of CBDI impact and air the ROW is reserved as a buffer pollution on zone and planted with trees, residents noise barriers have been designed and will be constructed at noise sensitive areas 4. Risk of flooding Bridges, culverts,roadside drainage CUDI systems have been designed to elimlnat& or minimize risk Clause In tender B. Construction Phase 1. Air pollution (a) Materials will either be stored Contractor, thru 102.13 with a cover over It, or sprin- the JST kledwith water periodically (b) Bitumen mixing plants will be 305.05 located at least 1,000 m away from residential areas 2. Noise pollution (a) Construction activities, which Contractor, thru 102.13 result In excessive noise, will the JST be carried out In daylight hours only (10 p.m. to 6 a.m.) (b) Unnecessary noise from hauling, 102.13/ blasting and construction will be 102.14 minimized 3. Water pollution (a) storage for lIlme and cement will Contractor, thiu 102.13 be away from rivers and water the JT8 courses (b) Temporary drainage for exca- Contractor, thru 201.OS vation and filling will be the JST provided and maintained - 142 - Page 20 Environmental Requirnd Responsible issue action entity Remarks 4. Traffic (a) A plan for traffic control will Contractor, thru 102.16 Managsent be made, roads for access to con- the J8T stmuction sites will be increased to reduce congestion, and traffic flow at peak hours will be reduced (b) Material haulage will be controlled 102.13/ to reduce spillage and duet 102.16 S. Quarry Operation (a) Quarry to be located away from Contractor, thru 102.14 residential area the J8T (b) Safety zones wil be established 202.0S and guarded (c) Explosive materil storage wil 202.05 comply with safety regulAtions 6. Waste Disposal Solid wvte will be appropriately Contractor, thru 104.01 disposed, human vaste iull be the J3T treated and discharged C. I9Elo1LUB 7* Construction (a) Air quality monitorlng for NOx, Employer thri Phs4e 00, TSP, Pb, TSC, KEC. the JST Nonitorlng points at h4, k9, US, k19, & k30 (b) Surface water monitoring for p8, 3OD(5), COD, 88, Pb, oil. Monitoring points at h4, h9, & k2h (c) Noise monitoring at khI, ho, h13 & l30 8. Operation (a) Monitor air, surface water, noSe, vibration, lead content in soil and crops (b) Traffic an accldent monitoring OPEC thiu Its envirmsntal unit notes 1. ˘0E1 - Guangdong Otghway Design Institute 2. GPEC - Guangdong Pravince Freeway Company 3. 011s - Guangdong Provlnce nvirounental Protection Bureau - 143 - A-LX 3 Page 21 Table 63 ESTIMATED INVESTHENT FOR ENVIROMENTAL PROTECTION OF THE FOSHAN-RAIPING HIGHWAY Item Unit. Cost (Y * 10,000) Physical notee barriers 2,910m/18 places 984.9 Planting of trees 36,039 traes 78.2 Planting of brush/shrubs 126,000 o2 75.6 Paving tufts 1,041,300 .2 364.5 Total 1.503.2 Table 7s LOCATION AND LENGTH Q' PHYSICAL SOUND BARRIERS RRQUIRED FOR THE LONGGANG-TANKI HIGHWAY No. Location Start/end Length Remarks 1. Xinjian Village k117-010 to +128 118 Right of route 2. Xincun Primary School k134-060 to +156 96 Left of route 3. Qiao tou Village k139-380 to +620 240 Lefc of route 4. Bian Village k140-226 to +378 152 Left of route 5. Tian Zin Town k166-750 to +964 214 Right of route Ttal 1ent4 2h - 144 - AJgNNE 3 Page 22 Table Ags SUHARY OF TEE MARUN LHEN8S O liE ENYVIROMENTAL ACTION PLAN FOR TOE LONOGANG-TAN IIIGY Eavizoimental Required Responsible Lsaue action entiy Remarks A. Preselection & DeslQn Phase 1. Route Route selected from 5 alternatives USDI 1 selectlon to minimize land acquisition, GP5PEC 'orticularly the land of good agri- BRIHOC Miltural quality and residential areas. Not to pass thru water sources. 2. lmpact on 185 underpasses provided for the BSD1 I moblity local passage of vehicles and pedestrias across the expressway. 3. Impact on A strip 50 meter.' wide along each USDI 1 inhabitants side of the ROW reserved as a buffer by exces- zone and planted with trees. sive noise air poll. Removal of some houses and providing adequate noise barriers to reduce noise and air pollution to reasonable (GOC standards) levels. 4. Protection Special engineering measures taken to ESDI 1 for shrlmp prevent shrimp ponds from being pol- ponds luted from runoff from pavement, alJ to ensure freoh water is availabla to recharge water In shrimp ponds. Clause i tender B. COnSruction Phase 1. Air (a) Stockpiled building material Contractor, 102.13 pollutlon stored with cover (cement and GPEPEC thru 1ST 301.02 Lime) and located at specified areae or regularly watered (earthworks) (b) Trucks hauling looso material to Contractor, 102.13 be sealed to prevent spillage GPEPSC thu J8T (c) Asphalt plants to be located at Contractor, 305.05 least 1,000 m from residential GPEPEC thru 1ST areas 2. Nolse (a) Construction activities gensrat- Contractor, 102.13 pollution Ing excessive noise to be con- GPEPEC thru JST fined to day-light hours (1Opm to 6am) (b) Unnecessary noise from hauling, Contractor, 102.03 blasting and construction to be GPEPZC thru JST minimized 3. Water Temporary drainage for cut and fill Contractor, 001.05 pollutLon to be provlded and regularly OPEPEC thru JST maintaLned - 145 - MX 3 Page 23 Environmental Required Responsible issue action entiy Remarks 4. Traffic (a) The network of access roads for Contractor, 102.16 control construction traffic to be GPEPEC thru JST (control & Increased to reduce congestion mitigation of and traffic to be controlled to traffic con- lover peak hour traffic gestion noise & air (b) Material haulage to be controlled Contractor, 102.16 pollution to reduce spillage ard dust GPEPEC thru JST 5. Quarry (a) Quarry to be located far from Contractor, 102.13/ operation populated areas GPEPEC thru JST 301.04 (b) Safety zone to be defined and Contractor, 202.05 safeguarded GPEPEC thru JST (c) Explosive material storage to Contractor, 202 05 comply with security regulations GPEPEC thru JST 6. Dierisal of Solid waste to be appropriately Contractor, solid and dioposed, human waste to be treated GPEPEC thru JST human and discharged vaste C. Monitorina 7. Construction (a) Ensure that noise levels 70 m GPEPEC Phase form the expressway do not exceed thru the JST 55 db (b) Regularly monitoring of dust- fall along the work sites in pas- sive dust collectors and ensure that measures are taken, thru the JST, In case of excess dust-fall (c) Monitor CO, NOx, TSP, other water quallty parameters, noise and vibration 8. Operational Monitor CO, NOx, TSP, other water qual- GPEPEC thru Phase ity parameters, noise and vibration, and the JST ozone and hydrocarbons on a seasonable and diurnal basis (long-term monitoring) Notes 1. GPEPEC - Guangdong Provincial Environmental Protection Exmination Center 2. CSDI I - No. I Highway Survey and Design Institute of the Ministry of Communications 3 HRIMOC - Highway Research Institute of the Ministry of Communications 4. JST - Joint Supervision Team - 146 - ANX 3 Page 24 ZIBla L2 ESTIMATED INVESTMENT FOR ENVIRONMENTAL PROTECTION OF THE LONGGANG-TANXI HIGHWAY Item Description Quantity Unit Coat (y*10') Tree planting Outside to slope of subgrade 120,175 ea Y 15 ea 180.30 Grass Side slope planting 1,461,110 m2 Y 2/rn 292.22 Sound barrier (see Table 4) Forest belt 4m wide for the road section near villages 35,724 m2 Y 4/r2 14.29 Monitoring equipment (see Table 10) 147 - Page 25 Tau 10 m9N f1L ummo MUIW T0 AM LAs00A3-TM UGMxS Ouaentitv Io. Name o equmt iecimoe1 epeci"iitiu Unt fetoal IMUOn- Poeban- Uit Total TM Kipin pi prics ms" 8kwy 0O ( 1 mcphie -WUampl eqipment set 20 10 10 160 3,200 2 LIph ptnm photometor St 2 1 1 6so 1,300 3 uirered analyss e t St 2 1 3,700 7,400 4 xftlhvolne Top e i got 20 1 0 070 19,400 S Gee cbrmetograph epectrmter Set 2 1 1 16,100 ",G60o 6 Atom abeorptics equtipme Set 2 1 1 9,100 18,600 7 Soud lwel pbotmeter (Sad. vibratio euipnt) De.ezt mg Co. set a I 1 11,200 2a.400 * Automttic saromental ML" measuremeut equipmet Semerk us Co. set 2 1 1 17,000 34,000 9 Ultraviolet roy epectnm photmeter Set 2 1 1 2,200 4.400 10 Se"l, culture Io, ealysi ecale, ate. Packag 1 0.5 0.5 7,600 7.600 11 Data proceeeie cmuter and pererel U-type boat computer et 2 1 1 13,000 30,000 12 Sezrvi veble Yessin c type Set 2 I 1 37,000 74,000 1 nottin survellance ve le set 2 1 I 56,000 112,000 ubetotal - 148 - Lag. 1 CHINA GUAMGDONG PROVINCIAL HIGHWAY PROJECT Resettlement Action Plans A. Foshan-Kaivin Hia_hwav 1. Route Location and Imnact. The expressway from Foshan to Kaiping extends for 80 km; the first four kilometers are densely populated. The high- way passes through Nanhai, Shunde, Xinghui county and the two cities of Foshan and Jiangmen. A total of 7,646.31 mu (509.75 ha) would be permanently acquired for the project, and 1,791.23 mu (119.42 ha) would be acquired for temporary use. Most of the land is cultivated or has an economic use. A total of 8,040 people would be affected by the project; those affected by temporary land acquisition number 1,099. Of the 6,941 people affected by permanent land acquisition, 65 percent are economically active. Most of the people affected by land acquisition, 70 percent, would be moved from agricul- ture to township enterprises, with 19 percent remaining in agriculture. About 183 households would be affected by the acquisition of their houses, for which they would be compensated and provided with replacement land. 2. Policy Basis of Land Acauisition and Resettlement. The province follows the Land Administration Law of PRC and its own regulations for land acquisition and resettlement. However, for initiating action on land acquisition and resettlement for major highway projects, the provinces involved are required to obtain the SPC's approval of the feasibility study recommendations and MOC's approval of the preliminary engineering design. Approval has to be sought from The National Land Administration Bureau if over 1,000 mu of agricultural land are being acquired. 3. Comnensation. Based on the above, compensation provisions are applied to both the expressway project and the provincial and rural roads projects. Land Comnenssation * Paddy fields Compensation is four times the average annual output value in the past three years before land acquisition. • Dry land, vegetable land, fish pond and orchards (including mulberry field and tea plantation). These are compensated at three times the average annual output value of the past three years before land acquisition. * Young orchard (fruit trees which have not borne any fruits): These are compensated at twice the average annual output value in the past three years before land acquisition. -149 - ANNEX 4 Page 2 * Forest landt If the canopy density is more than 30 percent, it shall be compensated at eight times the average annual output value and if the canopy density is lower than 30 percent for odd trees, the compensation is five times the average annual output value of similar forests in the area. * Waste Lands No compensation for waste land. Cro, Cognensation The crops will be compensated according to the output value of one batch. The perennial orchard, tea and mulberry trees shall be com- pensated according to the output of one year. Artificial forest and odd tree lands will be compensated according to the actual value and no compensation shall be made for nonprofit land. Resettlement Subsidy * For cultivated land acquisition (including paddy field dry land, fish ponds and orchards), the resettlement subsidy for each person shall be twice the average annual output value per mu in the past three years. - For forest land acquisition, the resettlement subsidy for each per- son shall be five times the average annual output value per mu. * No compensation will be given for land with odd trees, wasteland and land without profit. 4. Land compensation fees and resettlement subsidies are paid to county, township or village governments and used collectively. Enterprises that absorb surplus labor are entitled to resettlement subsidies to meet the cost of taking on new labor. The compensation fees are used to develop the villages and may be spent on land reclamation, road development, pump wells and establishing new village or tonnship enterprises. The local village committees are expected to submit a plan for using the compensation monies to the township governments. 5. Compensation for personal belongings is calculated according to local regulations and meets the costs of replacing lost houses, trees, tombs, and wells. Land for reconstructing houses is provided within the same village, and individual owners are responsible for replacing houses. 6. Compensation is also paid for removal and replacement of power and transmission lines. The managing units are responsible for replacement. - 150 - AMN[ 4 Page 3 7. The following unit prices had been used for estimating the costs of compensations Item Unit Unit price (yuan) H.. ; Wooden, tiled roof me 90 Brick or stone vail, tiled roof Ms 120 Reinforced cement structure Oa 180 Frame structure m 200 Other §ulddings Enclosing wvll and simple shed Ms 30 Threshing ground m! 20 Earth grave each 60 Brick or cement gravs each 90 Cinerary urns each 30 8. The Guangdong Provincial Highway Design Institute (OPUDI) is respon- sible for preparing the resettlement action plan (RAP) In consultation with the relevont local officials. The Guangdong Provincial Freeway Company (GPFC) has overall responsibility for resettlement, implementation and monitoring, and meots the costs of compensation. The total compensation cost is estimated at Y 145.16 million. 9. Resgettlgent Orxanizational Arrangomnts. The detailed organiza- tional arrangments for resettlement activities are as follows: (a) Provincial Level. The Guangdong Provincial Foshan-Raiping Ezpress- way Construction Directorate Office is in overall charge. The Guangdong Provincial Freeway Company (GPIC) approves the resettle- ment plans, oversees land acquisition and demolition of structures, and pays out compensation costs. Two to three staff members are assigned to this task. (b) CitL ove! City level resettlement offices are set up with three to five staff members. The city level officers york with the land management departments to implement land acquisition and resettle- ment In the cities and districts. - 151 - ARM&X 4 Page 4 (c) Countv Level. County level resdttlement departments have five to seven staff members and are responsible for organizing subordinate township end village governments to undertake activities related to land acquisition and resettlement. (d) Townshl2 Level. The township level departments are staffed with three to five staff members drawn from the offices of the townships' People's Governments. The local People's Governments are responsi- ble for supervising recettlement through the State Land Bureau. 10. Survey of the Right-of-Way. The survey of the ROW is complete. Initial preparations for land acquisition are completed and the Freeway Company has consulted with the relevant township officials. II. Contracts. The land acquisition and resettlement contracts were signed between GPFC and the relevant governments at city and county levels. 12. Comiletion of ROW Acouisition and Resettlement. Acquisition of land, payment of compensation and demolition of houses and resettlement would be completed by GPFC during the period August 15, 1992 end January 31, 1993. 13. Monitoring. GPFC is in overall charge of monitoring resettlement and has established a monitoring office with A staff of six. Two social sci- entists, from Zhongshan University and from Guangdong Provincial Social Scien- tific Institute will assist the monitoring team. A monitoring report would be submitted by December 31, 1993 followed by annual reports in the next two years. B. LonRganx-Tanxi githwav 14. Route Location and Imnact. The Longgang-Tanzi Highway is 146 km in length and passes through 6 counties and 17 towns. A RAP for the highway was prepared by the GPFC. The project would acquire 11,489 mu (765.93 ha) of land permanently and 2,231 mu (148.73 ha) of land temporarily (39-48 months). Due to permanent land acquisition, 7,760 people would be affected; 54 percent are economically active. In addition, 980 people would be affected due to tempo- rary land acquisition; 55 percent are economically active. About 453 build- ings would be affected by the project; 401 are privately owned and 58 are publicly owned. 15. Com2ensation Payments. The policy applied for paying compensation is the same as for the Foshan-Kaiping Highway. Under the regulations of the national end provincial laws, the construction company is obliged to pay com- pensation for land, crops, buildings, end other properties that are acquired. Resettlement subsidies have to be paid to all those losing land and property. 16. The management of resettlement, the distribution of replacement lands and the absorption of surplus labor into township employment is the responsibility of the respective local governments. Resettlement activities would be completed before construction begins. CoMenssation for Land: paddy--four times the average output value in the three years before land acquisition. - 152 - AEX 4 Page 5 Other landst vegetable, fruit, fish ponds--three times the annual aver- age output value in the three years before land acquisition. Youn& orchards--not bearing fruitt twice the average output value in the three years before land acquisition. Forest lands canopy density more than 30 percent--compensated eight times the average annual output values. If the canopy density is lower than 30 percent, compensation is five times the average annual output. Resettlement subsidyt for cultivated land, for each person--twice the average annual output value in the past three years per mu. Forest cropes five times the average output value per mu. Crop comnensation: crops would be compensated according to the value of one batch. Perennial fruit trees: compensated according to the output value for one year. Other trees would be compensated for according to their individual values. Comnensation for houses: * wooden and tile roof--Y 90 per in * brick, stone wall and tiled roof--Y 120 per ma. * Cement house--Y 180 per m2 * Framed structure--Y 200 per mi * Enclosing wall, simple shed and other buildings--compensated accord- ing to the actual condition, but not more than Y 30 per m2 * Threshing ground--not more than Y 20 per mi A total of Y 81,923,900 would be spent on compensation and resettlement. Ormanization 17. At the provincial level, a staff of 15 will be responsible for man- aging resettlement activities. They will be assisted by city, county and township resettlement offices with a staff of 3 to 6 in each office. Monitoring 18. Resettlement would be monitored under the direction of the Guangdong Provincial Shenzhen-Shantou Expressway Construction Directorate (staffed with 6 people) with the assistance of local land bureaus and county and township officers. Two sociologists will assist the monitoring team. A monitoring - 153 - 4 PAsg 6 report will be submitted at the end of 1993, followed by annual reports In the net two year. 19. SyI_r *o. Land acquisition, population affected, and resettleomnt for the Foshan-alp w aond Shenzhen-Shantou highway. are sumuarised In Tables 1 and 2 of this annex. cam GUANGDONG PROVINCIAL BHGROWY PKOJECT Land Acquisitlon, Population Affected, and Population to be Relocated, due to Construction of the Foahan-Kalpins Highway Land to be acquired Population Affected Resettlement City Couaty Touwnhip Pemanent Temporary &eon. on-econ. (mc) (mu) Active Active Total Families Population Fosban Nanhal Luochsn 149.8 32.7 110 60 170 28 120 Sbbirn anambi 8.9 2.0 17 9 26 0 0 Shivan Zangebha 538.2 147.8 722 391 1,113 29 137 Eanbal iEDsheang 808.8 441.3 700 383 1,083 6 35 Eanhal Sbaton 405.8 243.7 442 239 681 24 122 Sund LotanEtsg 624.8 196.0 569 263 832 3 20 Nanbal JuijSang 370.1 214.0 297 157 454 80 384 Jianpsn Hesbam Sbapln 498.0 25.0 564 304 868 1 4 oehms Tay.o 1,546.1 174.0 1,119 576 1,695 0 0 Heshba EHeheag 220.7 36.0 75 38 113 0 0 Beshan Coombe 1,009.0 85.5 328 176 504 4 17 C. Xkibnu Daxbe 99.5 25.0 23 16 39 0 0 linhut Siqlan 1,048.6 107.3 821 418 1,239 8 48 Heshan Zhbiban 318.1 61.0 199 123 322 0 0 Tatals for the Project 7,646 1,791 5,986 3,153 9,139 183 887 SCURC:MERUng _ PFravincLal Freeay CompanI CUANDOEGPRVINCIAL HGWA PROEC LOd Acquiition, Poplation Affected, and Population to be Relocated, due to Construction of the Longgau-Taaui Highway Land to be acquired nouseholds and Populatio. Affected Acquisition and Resettlemuent (M) County Tmbip Peent Teporary No. of Pop eco. Pop -ec. Total oes Households Population (uM) (MM) Households Active Active Affec Pop Acuired Relocated moved Bsoan Lofagge4 247.8 61.7 21 56 45 101 1 1 S Isoan Kengzi 465.5 208.6 27 74 59 133 30 12 60 "Y1an5g qiucbang 110.2 0.0 4 12 9 21 1 1 6 Hulyang Danhbul 1,053.1 760.9 123 482 395 877 45 21 105 HUiyAg Shatian 690.5 20.0 53 152 123 275 28 8 42 HBidong Wihom 917.2 30.0 87 254 209 463 9 2 12 Huidong Rensban 1,004.0 294.5 88 331 273 604 5 2 9 Buldong JiMong 989.1 101.6 92 260 213 473 16 8 40 Balfeng Yuanfun 408.5 218.0 18 61 so 111 0 0 0 Haifeng Epu 719.1 0.0 78 216 177 393 5 3 16 Haifeng Houmen 1,090.7 107.3 255 730 596 1,326 53 19 94 Haifeng Nelbong 826.3 40.3 134 391 321 712 93 40 200 Shawel Esgong 354.0 18.8 154 460 378 838 9 6 28 Sbanvet Hongcao 957.3 8.5 229 635 520 1,155 85 51 255 Balfeng Tsohe 525.5 14.7 30 98 82 180 8 5 40 Balfeng Cblkeng 484.4 42.9 54 162 I33 295 7 9 11 Lufaeg Tansi 645.9 302.9 135 430 353 783 6 27 9 Totals for the Proj 11,489 2,231 1,582 4,804 3,936 8,740 401 215 931 NOt An additional 806 population living in ptblic lstitutions or enterprises (mostly schools) vould also be relocated due to partial building acquisition and replacement. SOURCE: Guangdong Provincial Freeway Company IF 1tz - 156- -E CHINA GJANGDONG PROVINCIAL HIGHWAY PROJCT Implementation Schedule This annex presents the implementation schedule for the various components of the project. Table I summarizes the overall implementation schedule for the project as a whole. Table 2 shows the detailed implementa- tion schedule for Contract Section No. 4 of the Longgang-Tanxi Highway to be constr"cted by LCB; the remaining five contract sections of this Highway and the four contract sections for the Foshan-Kaiping Highway to be constructed by ICB; administration and maintenance buildings and service areas; and electri- cal and mechanical works for both Highways. Table 3 depicts the detailed implementation schedule for the supervision of construction of both Highways. These schedules show the estimated time requirements for construction activi- ties as well as for preconstruction activities such as preparation of bid documents, prequalification process, bidding process, evaluation of bids, negotiations and signing of contracts. -157 - OUANGDONG PROVINCIL HIGWA PROJECT lmelementation Schedule 1992 1993 lJ94 1995 1996 1997 1998 1. loshan-Xaiping Highway (a) ICB contracts (Sactions It 2, 3 and 4) (b) -, -, 3 and Installtion . .... (c) Service and administration facilities - 2. Longgang-TSa Highway (a) ICB coitracta (Sections 1, 2, 3, S, 6) (b) LCB contract (Section go. 4) (c) EHI supply and iustaiUationm (c) Service and administration facilities -- 3. Road Improvemnt Program 4. Road Safety Pilot Progran Sunervision of Conotruction 1. osbhan-KUlpng end Longgang- Tanzi Highway 2. Road Improvemeat Program Procurement of airmarmnt 1. Foshan-Kaping and Loeggang- Tanci Highways (a) Supervisionllaboratories and envronmaental (b) Operation and maintenance - - 2* Provancial and rural roads (a) SupervIsionIRDB/PMS/Safety (b) Road Maienncenes TrUij,ITec'nical Assistance 1. General trainng- 2. Supervision tralan in=== 3. Highway financing technical Lageod: Prsqualification/Preparation of Bidding Documents/TOR Bidding Process/Competition along Consultants ConstructionlSupervision/Dellvery - Training - 158 - AM S Page 1 -GUANGDON˘ PROVINCIAL RIGWAY PROJECT Implementation Program for Construetion of the Foshan-aiuina and LonWnSgWg-Tami Highbas I. Civll Works- A. Longlanx-Tanxi Hi&h_av. Contract Section 14 (LCB) Bank's no objection to prequalification document Aprl 30, 1992 Last date to receive PQ documents May 31, 1992 PQ documonts evaluation report and HOC review June 10, 1992 Bank review and no objection of PQ evaluation June 13-30, 1992 Complete bid documents June 15, 1992 Bank review and no objection to bid document. June 30, 1992 Sell bidding documents to prequalified contractors July 1, 1992 Last date to recoive bid documents Aug. 15, 1992 lid evaluation report and Government review Aug. 25, 1992 lank review bid evaluation report and no objaction Sept 15, 1992 Negotiate and sign contract Sept. 30, 1992 Start construction Nov. 1, 1992 Complete construction March 31, 1997 B. Lomaanat-Tanxi RigbhMa. Contract Sections No.s 1-3 and 5-6. and Foshan-Kaoning Highwav. Contracts No.. 1-4 (ICB) Bank's review end no objection to PQ documents April 30, 1992 Last date to receive PQ documents July 2, 21992 Complete bid documents Aug. 15, 1992 PQ documents evaluation report and HOC review July 3-31, 1992 Bank review and no objection to PQ evaluation report Aug. 1-31, 1992 Bank rview and no objection to bid documents Aug. 15 - Sept. 15, 1992 Notify prequalified contractors Sept. 5, 1992 Last date to receive bid documents Dec. 15, 1992 Blid evaluation report and government review Dec. 169 1992 - Jan. 31, 1993 Bank review bid evaluation report and no objection Feb. 1-28, 1993 Notify successful bidders March 1, 1993 Negotiate and sign contracts L/ March 3-31, 1993 Start construction may 1, 1993 Complete construction losh.n-Kaiplng Contract Nos. 1, 3 and 4 Sept. 30, 1993 Poshan-Kaping Contract No. 2 Dec. 31, 1996 Lmnggang-Tanui Contract Nos. 1, 2, 3, 5 and 6 Sept. 30, 1996 159 - ~~~~~~~~~~~AM5 | Tab~~~~~~~~~~~~~~~Ile 2 Page 2 c. Adiniostration and Haintenance Buildinas and Selxce Areas (Limited Coemetitive liddina Completo bid documants Jan. 1, 1994 - July 1, 1994 Invite bids Jan. 15, 1994 - July 15, 1994 Receive bide March 1, 1994 - Sept. 1, 1994 Complete bid evaluation April 1, 1994 - Oct. 1, 1994 Negotiate and sign contracts may 1, 1994 - Nov. 1, 1994 Start construction June 1, 1994 - Dec. 1, 1994 Complete construction July 15 - Nov. 30, 1996 II. Ilectrical and Mechaical Works Lo2nang-TZax Hiahway--ContraCt #7 and Foshan-Kaininn HiRBsv--Contract #5 (IC3) Complete bid documents and review by HOC June 15, 1994 Review bid documents by Bank and no objection June 25 - July 25, 1994 Invite bids an Aug. 1, 1994 Last date to receive bids Oct. 13, 1994 Prepare bid evaluation reports and Government review Oct. 15 - Nov. 25, 1994 Beak review and no objection to bid evaluation report Dec. 1, 1994 - Jan. 10, 1995 Notify successful bidders Jan. 15, 1995 Negotia end sign contract 1ib. I - 28, 1995 Start construction April 1, 1995 Completion construction Feb. 15, 1997 1 GPIC wishes to sign contract sections on various dates in order to spread the timing of payment of contract advances. - 160 - ANXWE 5 cia ~ ~ ~ =a CUANODONG PROVINCIAL HICEWAY PROJECT Im=lemntation Proarsm for SunrvEision of Construction of the Foshan-Ki2iLaU and LonaMang-Tmai Highwavs Review and no objection of Bank to terms of reforence, letter of imnitation and short list of consultants April 30, 1992 Issue invitations to shortlisted consultants Sept. 1, 1992 Last date to receive proposals Oct. 31, 1992 Complete proposal evaluation report and MOC review Oct. 1-31, 1992 ltnk revlow proposal evaluation report and no objection Nov. 1-30, 1992 Negotiations with consultant end sign contract Dec. 15-319 1992 Training local personnel abroad Feb. 1-28, 1992 Start supervision of construction April 15, 1993 Complete supervision of construction Oct 31, 1997 - 161 - mmI Page 1 CH GUAICDONG PROVINCIAL HIGHWAY PROJECT SuDervision iselon PAOl Timnlg Main activities Skille requirement Staff-weeks 11192 Initial Review Highway Engineering 2 (i) steps taken by Borrower concerning loan Highway Finance effectivit'; (Li) bidding profile for civil worksl (ill) status of consultant selection (highway); (iv) local supervision team arrangements (highway and RIP); (v) status of land acquisition and resettlement; and (vi) progrese on highway financing. 4|93 Prolect Launch Workshon Highway Engineering 3 The review of all key procedures for Bank- Procur ement Executing Agency Interactions, such as project Disbursement selection (RIP), procurement, disbursemnt, Environment environment and resettlement, _mplementation sighway Finance schedule a"d progress reporting requirements. Review progress on Highway Financing TA. 10/93 General Sunervslion Highway/EngIneering 3 Resettlemant Ci) review of overall progress for each com- ponent and Identify pending Issues and agree on follow up actions; and (ll) reach agreement on resettlement monitoring arrangements. 4/94 Maler Sunervision Highway ngin8e erng 4 In-depth review of implementatLon status with snvlroNment particular emphasis ong RIP, PRS (1) contractors' performance Transport Economics Cii) effectiveness of supervisiong (ili) adequacy of environmental protection mea- sureso (iv) preparation of RIP subprojects and RIP, PHS, Road Safety and staff training programws and (v) review progress on highway financing TA. 10194 General Sugervision Bighway Engineerlng 3 (1) review overall progress for each component Procurement and Identify pending lssuee and agree on follow up actions; (ii) review proposal for equipment procurement for the operation and maintenance of the highway component, and (iSl) review bidding docimnts for BEM supply and installation contract for the highway. 4195 Maler Supervision Highway Engineering 4 In-depth review of implementation statue wlth Envirousnt rzn.Il-Aar suo,phais ont Rosettlement (i) con-a;tors' performance; Highway Finance (i1) effectiveness of supervisioni (iii) adequacy of environmental protection ma- surest (iv) RIP, PIS, Read Safety and staff training programs; and (v) review progress on hd&way financing TA. - 162 - A=6 Page 2 Timing Maln activitles Skills requirement Staff-weeks 10/95 rligway Engineering 3 Reviewing oveo progress for each component and identifylng pendiag Issue& and agreeing on follow up actions. 4196 Kalor 8ueu Hghway Engineering 4 In-depth ravlrw of implemtation status with Environment particular mpa hao oon RIP, PHS (1) contractors' perfonmance lghweay Fnance Cl) effctiveness of supervisiong (Cit) adequacy of envlronemntal protection rea- surest (iv) RIP, PM, load Safety and staff training programsg and (v) review progres on highway flnanclng TA. 10/96 GenerHl SUD ighway Engineering 2 Reviewing ove progres for each component and Identifying panding lmes and agrealig on folow up act-low. 4/97 ^10r I Ml lon Highway Enginering 3 Zn-depth review of Implementation status with Environment particular * ph ael ont RIP, PIS (1) contractors' perfoumance; Highway Finance (Ci) effectivenes of eupervlsong (Cii) adequacy of environmental protection mea- sures; Civ) RIP, PM8, Road Safety and staff training programs. and (v) reviw progress on highway financing TA. 10/97 Hiaenrl §°1 Bighway Engineering 2 Review vev progres for each component and identify pendng lasme and agree on follov up actions. 4/98 CenHral iDP Elghway EnglneerIng 2 Review over pla etatlon status and intalte t CR. 10/98 ,L3amiss Highway Engineering 4 A cOmnolidated revie of project Implemnta- Transport Ecc-nomist tion. Environment Resettlement RIP, PUS, Training Toe;l la4 - 163 - Page I CHIA GUANGDONG PROVINCIAL HIGHWAY PROJECT Docgiments Available in the Pfrlect File 1. Shenghen--Shantou MotorwaE. Enineerins Feasibility Study Renort, Highway Planning and Designing Institute of The Ministry of Comunications, March 1990 2 Reort on Assesoment of En-vironment Im2act of xhenshen - Shantou Motorway, Highway Scientific Research Institute, The Ministry of Communications, May 1990 3. The People's Republir of China. Fohan-Zhanilana Auto-Onlv y lhwav Protect. Prolilnarv leasibLlity Studt Re_ort, Guangdong Provincial Highway Planning end Design Institute, November 1990 4. Proiect Feasibility Stuty Renort for Foshan-U12aini Freewar, Guangdong Provincial Highway Planning and Design Institute, August 1991 5. The Environmental ImvAct Assessment for Fo-&al (!oshan-1A121nn) HiaNwav Pro1ect in Guanadona Province. China, Shanghai Ship and Shipping Research Institute, Ministry of Communications, October 1991 6. The Latest Economlc Data and New Traffic Counto for 8henzhen-Shantou ZDreos , Guangdong Provincial Freeway Company, October 1991 7. Guanadong Provincial Hiahw-a Pro1-ct. Shenghen-Shantou and oshgan-Kal2ini Exnresswavs. Review for Entineerina Desian. Incention Renort, gampeax International A/8, Danish Road Directorate, Navember 1991 8. Gw nadona Provincial Hiahwta Pro1ect. Shenzhen-Shantou and Poshan-Kainlng Exuresaways. Review for Enatneerina Desien. Dee4gn Revlew Re2ort, Kampoaz InterLational A/$, Danish Road Directorate, December 1991 9. oshan-RalKinin Exreseway--Finolize laosettlement Action Plan (RP) Guangdong Proavincial Freeway Compony, July 1992 10. Shenxhen to Shantou Xxork*psway (Lonmang to Tan=i Section)--Minalized Resettlement Action PlI, Guangdong Provincial Freeway Company, July 1992 11. An Executive Summarv 2f the Environmental Assessment of the Foshan- Kaioinat Exoreoswy, Environmental Protection Division, GPFC, February 1992 12. AnEtecutive Sunmary of the Enmironmental Assesoment of the Shenahen- Shuztou Exorexprsg (Lonaaana-Tuxi Section)j, Environmental Protection Division, GPFC, February 1992 - 164 - ,7 Page 2 13. loshon-Rai2nae ESncreoaw Projects nviromental Action Plan (xreised), Cuangdong Provincial Freeway Company, January 17, 1992 14. Shnhn-Ih=qM Hiaba (Lonagne to Taz StIgn) a nvronenal Action Plan (revision), Guangdong Provincial Freeway Company, January 17, 1992 15. EnMvronmental Imsact Asosesment Report for Road Im2rovement Program of guanadonS Provincial Hiathwva Proloct inaced by IlRD, Guangdong Provincial Highway Administration, May 1992 16. nMvironmenta.l Protection Imileentation Proagam fgr Road IXMrovement Proaram of Guangdong Provincial HiahWa Prolect Financed by lIBED Guangdong Provincial Highway Administration, May 1992 17. Lettex: "Re: OD Provincial HIahWa ProlectlReunonse to thea ui.et on ERRP of Fo2han-KAivinit ExnreseWav SMahenn-Shantou Exnrseaav and RIP, Letter from Guangdong Province to Bank, September 2, 1992 - 16S5- Chartl1 11 a ig I ~~~~I I Ii'~~~~ 41' II' Xi lj Cum Ormaanation of the QuazzadonE prowingial Dinhmay hjbmietsrotion tea provincial Hisjua Adoiaitretion surea 214 Egecutive Uateltnance Maintenance lorrY Highway Nann,'ug and abr Education Adi Sectio Section Fee Collectiug Section hAdmnstnration Vinanclug adWage Section Seto Office Section Section Section 24 ~~~25 12 20 25 17 5 44 _~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ P y~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- cwtlaf g Blf Plit_cei htDIOCeJeP .a*t Labor etna4 S Sehtinr Project wDeprtuat I Cadre Cuierviict 8 r tleo I8 Ud SeW Io I OOf f f t Comm Sectsioa 24 24 3 3 20 25 40 2 Note: The wmbes 1nelid the blocks indicate the number of staff for the specific unit. got Otzation of MavtMaNgtal Protection MAnien IlorIA Bank state Emwicoment"Imonitoring ftat"tun Bum" ftv~~~~~~~~~~rgniation at Protectioa Bureau +the highest irni _ g _ 1 l~~~~~~~~~~~~~~~~~~~Mntoringaned Ie OrgnizatioB at the lrst Lmel G-ner "=*| GP Ibntr 11_ntal 1 lpleti8 So"rwuoc PrnviLncs IoltorLng CenterO ting Office PrIY] th t Level Company ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~Ognzaina Monitoring a cityiomal Cit Iixo,mntl Ci C omena 1 npl.menting 8W1glse boProtectio BDr otorin Center Organiatio at sepr_entattwl Ioa, oneC I I II the Seeond Leve _ _ . partty stafft t actratlm Usident COUR" dDD | | cowy r umatl Implementing tagldr IStatio Protectim aute" Montorig statio Organi1tio 1at 011C | | | l ,J the Ticrd lavel | s ~~~~~~~~~~~~~~~~~~~~~~~ti Fourth levl {" Il1inanting ŁAinistrative and Monitoring Auxiliry Organizatio Organization Organization RUSSIA RUSSIA KAZAKHSTAN I / IHElONGllANG ULAANBAATAR UZBEKISTAN ALIA MONGOLIA ir fr 6* oh NEI 9 t\ (3 t_ * v~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~( FRUNZE 0ALIN->N SD Wqi .mONGOL Rl KYRGHYZSTAN $ JAPA _ cr Omvwon ~~~~~~~~~~~~~~~~~~~~OF KOREA <~''~' nrZD ~ H~Bl'" roreeoi!ANIIN SN!REP OF CAN-' ~ ' /e R tK-~- JKOREA N. Sr-S / ~~~~~~ ~~~~~~~~~~~SHANXI ( g linl@mX f 0'~~~~~~~ dL \ <4 StNDT.-ONG no This mophoe Pren p pared by ) f \> Tone eo 'N. t -J The WorS b Ws s;_r euoe b yI QING11AI o Si) iforrhe,oteie-loorf The .Wodd A I" \ Oree? o LmG. The deromwi-omo r r * 0 om=n o thi. mopdo rot rplfo o the p > b'er\ HENAN . f pJI!NGSU of Tle Wo=d Rhok Irop ooy . SHAANYI C-) orocpoc f oh fo-rd-ree 4>-. IANNUl 50' XiJ JO k A [ - < \ h hiS7 s˘ii SHANGHAI SHI WANGm - ZNrJ, @ NC NEPAL SICHUAN corse;r &> NEPAL 0- o 0w4 {Nn j CHINA >9 a r< roeesoeej MAJOR HIGHWAY DEVELOPMENT PROGRAM i-- 1 J >5 HANGXI MAJOR HIGHWAYS: , rAsN , ) ) Qoerlrwo COMPLETED|iP t - <-- UNDERCON5TRUCTION/bTHFIVEYEARPLAN (1991 1995) .A V GANANGDNC '2 9HFIVE YEAR PLAN (1996-2000) GUYUDNNAN OC GLANGXI e rPMO o0hemen PLANNED bEYOND 20D0 N ' o01m = BN FUDE PRTP \OJECTSHONG KONG. U.K. WORLD BANK fVESTMEANT IN ThEMAJORROAD NETWORK: RANK NDEDPORTPROJECTSMac, Port. ONGOING WORLD BANK PROJECTS O3 PROO1NCE $ -, VIETNAM PHILIPPINES PROPOSED WORLD BANK PROJECTS * NATIONAL CAPNTALS .f PROANCE BOUNDORLES - nL LAO PEOPLE'S Aeo i e e e INTERNATIONAL BOUNDARIES THAILAND U DEM. REP HAINAN N ~~~~HUNAN / 741 ~N.JIANGXI I H U N A N 4 a,, ; ,\ j$ - RonhcJNoI A,N GXI ,-\ ca, y - ( . j L n ~ i b \ ~ Shin- /- -- FUJIAN 25o 0 ~~~~~~~~~~~~~~~~~~~~~~~~ /~~~~~~~~~~~~ -6 t;ta aut D _ t~~~~~~~~~~~~~ uYon/$h 0a *- oo o _ O.7 sHei3 fl9\ * ,>SS*isi- C Qt >U.E11C e5ud (/opn - Shkn Pingyon' c Dcu - 7 o~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~H.ping UANGXI Q,-Ramsai/as<>sosai f \>COnn Y O \$ A Longcho '~ 0 > O E I X I A N % P .,-~~~~~O I V A u J{_UFi> t5 oop / isisO 4 ,o/Y,nde .- 0000i0000 Ih GUANGXI 24J 9 'MHX ( Nn~,T.cdn,k,op ,0 Źf4\ i H--n - -a-->: Y:GDGNG } 1/CGI Z-k A ZH I\ QV no |-5 PROV I P 2H W P J - . ~~Th,shon Zkcho I 0FI~"IG KO G, U.K. PROPOSED PROJECT -22 ogln Eni-D00 AA HIGHWAY CONSTRUCTION Z -lU I-i A - PO-E - -0-000-0-NATIONAL ROADS UPGRZADING )RIP FIRST PACKAGE T. N.-F.9 ........~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~f0o0o GRAVEL ROAD PAVING SUB-PROJECT 'I 0000T0000 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~PAVED ROAD REHABIUTATION 00000 NATIONAL ROADS UPGRADING TENTATIVELY IDENTIFIED * -~~~~~, Lon~~~~~~fon oko ~~~~~~~~ 00000000 GRAVEL ROAD PAVING ADDITIONAL RIP~~~~~...... RAELROD PVIG DDIIOALRI PAVED ROAD REHABILITATION SUE-PROJECT PLANNED EXPRESSWAY -EXISTING EXPRESSWAY ----EXPRESSWAY UNDER CONSTRUCTION NATIONAL ROADS PROVINCE ROADS 51 ------ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~RAILROADs ~~~~~21' ~~~~ ~ ' '$ PORTS Ao RIVER PORTS i~~ f4~0fl9 ± ro A_RPETS21 U NGV U 0- DmghiO 4 < 0 Sn9hul10' -$ -9 > i CHINA |--A" / _ ,GUAI21Gz[IOt<, GUANGDONG PROVINCE HIGHWAY PROJECT a ZhoobinS ./,'/ \'(' 'A:'G4r/y r a r -. Shu ikouu Xinhui S ~~, t9 PROVINCE CAPITAL 'K'- (* '< . - PREFECTURE BOUNDARIES J'ITolPrzipir+> - \ \X< - PROVINCE BL'UNDARIES M J; A N kM EI~ .? 9 % o/Zhuh.i - INTERNATIONAL BOUNDARIES ,. , SI>Tr ishon I< g \ / > Enping' 7 -)oumw1 ° ) g /' / r = , ~~~~~~~~~~~~PORT. 0 10 20i 3( 40 r KILOMETERS_ Yonghu - t 0 4 B 12 16_20 Gongping20 >:) ( / / /4clihu( \ S ~~~~~~ ~ ~ ~~~ ~ ~ ~ ~ ~~~~~~~KILOE4RS ~j. 0 xinxur / -- HUIZHOU / SHAN.'EI / ~~~~~~Shatian SH NG E Pingchio4 - Hai euC S d H E Enshui Li.nan He.i Longgongo EBc U u n"' ' / " Tache Taihu * . . HYan xion 0PingshonAtob6wi Hun -'Ckeg 0 Henggang -.' XUTAON HNMzn --- SHENZHEN Dongyongua giVu Y-ntnyu Yonzhou , Hong o i B y Xingong 6Sfatoujiao K