China - Liaoning Urban Transport

 ICRR 12505 Report Number : ICRR12505 IEG ICR Review Independent Evaluation Group 1. Project Data: Date Posted : 09/21/2006 PROJ ID :P041890 Appraisal Actual Project Name :Cn-liaoning Urban Transport Project Costs 382 336 US$M ) (US$M) Country :China Loan /Credit (US$M) Loan/ US$M ) 150 148 Sector (s):Board: ): TR - Roads and US$M ) Cofinancing (US$M) highways (89%), General transportation sector (7%), Sub-national government administration (4%) L/C Number :L4453 FY ) Board Approval (FY) 99 Partners involved : None Closing Date 12/31/2004 12/31/2005 Evaluator : Panel Reviewer : Division Manager : Division : Ramachandra Jammi Roy Gilbert Alain A. Barbu IEGSG 2. Project Objectives and Components a. Objectives To improve urban transport system productivity so as to facilitate economic and social development within the project cities. Specifically, 1. Alleviate bottlenecks in the road system; 2. Increase efficiency and effectiveness of public transport services; 3. Improve maintenance of road investments; 4. Improve environmental sustainability of project investments; 5. Improve operational efficiency and safety of the road system; and 6. Strengthen local capacity for urban transport system management . b. Components (or Key Conditions in the case of Adjustment Loans ): There were four components, one each for the cities of Shenyang, Fushun and Anshan, and a fourth component for institutional strengthening and technical assistance (TA). Each city component consisted of four subcomponents: public transport, traffic management, infrastructure, and road maintenance . Specific activities in each city are indicated below, along with subcomponent costs at appraisal ( app. US$m) and at project completion (comp. US$m). In Shenyang , construction of additional capacity in the principal east -west corridors, additional crossings of the railways lines, exclusive bus lanes, and strengthening local capacity for the management of urban transport operations and services through studies, technical assistance, and training . (public transport: app. US$10.1m, comp. US$2.3m; traffic management: app. 20.2, comp. 18.0; infrastructure: app. 113.5, comp. 33.2: road maintenance: app. 21.7, comp. 49.6) In Fushun , construction of the Hunhenan Corridor, bus priority facilities and non -motorized vehicle exclusive roads, and studies, technical assistance, and training . (public transport: app. US$1.8m, comp. US$2.0m; traffic management: app. 3.3, comp. 6.0; infrastructure: app. 81.1, comp. 64.1; road maintenance: app. 5.0, comp. 21.8) In Anshan , reconstruction of the main north -south corridor and the construction of an interchange between the primary north-south and east-west corridors. (public transport: app. US$12.6m, comp. US$2.0m; traffic management: app. 5.0, comp. 5.1; infrastructure: app. 97.2, comp. 98.0; road maintenance: app. 4.4, comp. 24.0) TA component : Consulting services to support project management, (bidding document preparation and construction supervision ), domestic and international training and seven studies : (i) Bus priority design; (ii) Public transport reform; (iii) Area traffic signal control (ATC) system; (iv) Parking policy; (v) Traffic accident analysis; (vi) Road Maintenance plans; and (vii) Motor vehicle emission control strategy (MVECS). (Shenyang : app. US$2.1m, comp. US$1.6m; Fushun : app. 2.2, comp. 1.3; Anshan: app. 1.2, comp. 1.3) Added up across the cities, the project costs by component at appraisal (US$m); close of project (US$m), and as a percentage of the appraisal amount were : Public Transport (24.5; 12.3; 50%); Traffic Management (28.5; 30.0; 103%); Road Infrastructure (292.0; 195.0; 67%); Road Maintenance (31.0; 95.0; 308%); Technical Assistance (6.5; 4.0; 62%) c. Comments on Project Cost, Financing, Borrower Contribution, and Dates An unallocated amount from road construction works -- due to the cancellation of the Jianshe -Nanwu expressway in Shenyang -- was reallocated to maintenance (supporting project objective 3 to improve maintenance) resulting in road maintenance receiving three times the cost estimated at appraisal . The overall 10% decrease in final project cost as compared to that at appraisal was mainly due to the 20% shortfall in Borrower contribution resulting in the components for public transport and technical assistance being reduced by 50-60% of appraisal estimates. Since there was no restructuring, the changes were approved by the Board on a “No Objection