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China - Second Xinjiang Highway Project (Inglês)

Ratings convey a satisfactory project outcome, likely sustainability, and substantial institutional development impacts, accomplished through satisfactory performances, both by the Bank and Borrower. The impact of pavement settlements, and their technical treatment, provide lessons on monitoring work, useful to provide to guide the Kuitun-Sailimu Highway to be financed under the follow-up operation, and, it is suggested that lessons also provide a significant contribution to improving the management of highway projects in other provinces, by demonstrating the seriousness of the settlement issue and the importance of adequate surveys at the design stage, of sufficient time allocated to achieving final consolidation, and, serious monitoring work to assess the extent of settlement, and the effectiveness of the treatments. Recognizing that institutional strengthening, and capacity building take time, it is recommended to take it into account at the concept stage, gradually incorporating it into follow-up up operations; at the design stage, action plans for short, and longer term implementation should be devised; and, during implementation, institutional strengthening activities should be devised with practical execution of a major task, as was the Highway Maintenance component - internalizing good concepts and practices in highway management and maintenance. And, an interesting compromise between economic and financial returns, is worth noting: financial costs were not fully covered, yet, the amortization schedule was customized to better reflect revenues, tolls were applied, and, local exemptions were granted (agricultural vehicles exempted from toll).

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