China - Huangpu Port Project

Domamit of d--/ - 7 -c. 14 A The World Bank FOR OMFCL USE ONLY Report No. 6230-CHA STAFF APPRAISAL REPORT CHINA HUANGPU PORT PROJECT August 28, 1987 Transport and Energy Operations Division Country Department 3 Asia Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency name = Renminbi Currency unit = Yuan (Y) 100 fen Calendar 1985 July 1987 $1 = Y 2.96 Y 3.7 Y 1 = $0.34 FISCAL YEAR January 1 to December 31 MEASUREMENT EQUIVALENTS Metric System British/US system 1 meter (m) = 3.281 feet 1 square meter (.2) 10.764 square feet 1 cubic meter (m ) = 35.315 cubic feet 1 kilometer (km) 0.621 mile 1 ton-km - 0.621 ton-mile 1 ton 2,208 pounds PRINCIPAL ABBREVIATIONS AND ACRONYMS USED CHC - Cargo Handiing Corporation cif - Cost, insurance and freight COSCO - China Ocean Shipping Corporation dwt - Dead weight tons ERR - Economic Rate of Return fob - Free on board GHG - Guangzhou Municipal Government COC - Government of China HAE - Harbor Administration Bureau HHB - Huangpu Harbor Bureau EHSA - Huangpu Harbor Superintendency Administration MLW - Mean Low Water MOC - Ministry of.Communications MOF - Ministry of Finance MR - Ministry of Railways nrt - Net registered ton SPC - State Planning Commission  FOR OMCIAL uss ONLY CHINA HUANGPU PORT PROJECT Loan/Credit and Project Summary Borrower: People's Republic of China Beneficiary: Huangpu Harbor Bureau (HEB) Amount: $88 million equivalent comprising a bank loan of $63.0 million equivalent and an IDA Credit of SDR 19.8 million ($25.0 million equivalent). Terms: For the loan, twenty years, including five years of grace, at the standard variable intetest rate; for the credit, standard with 35 years maturity. Relending Terms: The proceeds of the loan and credit would be onlent from the Government to HHB under a subsidiary loan agreement with a 20-year term, including 5 years of grace, at an interest rate of 42 p.a. The foreign exchange risk between the dollar and RMB and commitment fees would be borne by HHB. Project Objectives: The principal objective of the project is to assist the Government in the effort to relieve congestion and increase the handling capacity in the ports sub- sector. The project would provide for infrastructure development in a key port in southeastern China, as well as technical assistance and training to strengthen the port's management and improve its operating capabilities and to address intermodal aspects of port operations. Project Description: The project would: (a) increase the capacity of Huangpu port through construction of 1,000 m of quay- walls for coal, iron ore, bulk fertilizer and general cargo, including necessary ancillary works such as dredging, reclamation, pavement, railways, roadways, bridges, utilities, and supply of equipment; and (b) provide training for port personnel in construc- tion supervision, specialized design work and managerial and operational improvements; and (c) pro- vide technical assistance in updating the port's master plan, including an intermodal cargo distribution study. Risks: There are no unusual risks associated with the proj- ect. All components involve proven technology. Training will be provided to HUB personnel in con- struction and operation of the new facilities to This document has a restricted ditribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - ensure that new equipment is properly used and main- tained. The only risk lies in the potential for delay in project start-up due to the introduction of ICB procedures for civil works. To minimize this risk, the Bank would provide appropriate assistance in the early stages of the project. Estimated Project Costs: Local Foreign Total ---------- (US$ million) Civil works 70.3 73.7 144.0 Equipment 7.2 45.6 52.8 Training 1.8 0.3 2.1 Technical assistance 4.0 1.2 5.2 Custom duties and taxes 12.2 - 12.2 Subtotal 95.5 120.8 216.3 Contingencies Physical 7.7 11.9 19.6 Price 6.1 9.2 15.3 Total Project Cost /a 109.3 141.9 251.2 Financing Plan: Bank - 63.0 63.0 IDA 25.0 25.0 HHB/Government 109.3 53.9 163.2 Total 109.3 141.9 251.2 Estimated Disbursement: Bank FY 1988 1989 1990 1991 1992 1993 ------ - --- (US$ mill on Annual 4 24 28 19 8 5 Cumulative 4 28 56 75 83 88 Economic Rate of Return: 21X M!ss IBRD 19540 IBRD 19567 /a Identifiable taxes and duties amount to $12.2 million equivalent and total project cost, net of taxes and duties, is about $239.0 million equivalent.  CHINA HUANGrU PORT PROJECT Table of Contents Page No. I. The Transport Sector................... ,............... 0 1 A.* Trafca.f fice**...., *0~*e 0 *00* 1 D. Transport Issues and Objectives in the 1980s*****.**e 3 II, The Ports Subsetor*o....................o.. ..-*e.* ....... 4 A. Port F a c i l i t i e s 4 B.* Traffic.. ,.. .......... ec~. .* 4 C. Investment Priorities and Technology..o*.o........... 4 D. Organization and Managemente......................... 4 S. Operations and Maintenancece.....c........c........ 5 F.* Tarfs a r i