China - Beijing - Tianjin - Tanggu Expressway Project

'lb World Bank FOR OFFICIAL USE ONLY Report No. 6344-CHA STAFF APPRAISAL REPORT CHINA RELJTNG-TTANJIN-TANGGU EXPRESSWAY PROJECT April 17, 1987 Projects Department East Asia and Pacific 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 (as of November 1986) Currency name = Renminbi Currency unit = Yuan (Y) = 100 Fen US$1.00 Y 3.70 US$0.27 Y 1.0 US$1.0 million = Y 3.7 million US$270270 Y 1.0 million FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 mile (mi) 1 square meter (m2) = 10.76 square feet (fi2) 1 square kilometer (km2) 0.4 square miles (mi ) 1 hectare (ha) = 0.01 km2 0.47 ac es (ac) = 15 m1u 1 mu = 666.7 m5 = 0.0667 ha 1 kilogram (kg) = 2.2046 pounds (lbs) 1 netric ton (m ton' = 2,204 pounds (lbs) PRINCIPAL ABBREVIATIONS AND ACRONYMS USED AADT - Average Annual Daily Trafffic CADE - Computer-Aided Design and Engineering CHB - County Highway Bureau CTC - Central Trucking Company CTD - County Transport Department ERR - Economic Rate of Return GNP - Gross National Product HR - Highway Bureau HPDI - Highway Planning and Design Institute H1SRI - Highway Scientific Research Institute ICB - International Competitive Bidding ITC - International Tendering Corporatior MOC - Ministry of Communications MOF - Ministry of Finance PHB - Provincial Highway Bureau PTC - Provincial Trucking Company PTD - Provincial Transport Department SAA - State Auditing Administration VOC - Vehicle Operating Costs Vpd - Vehicle per day  FoR omcUL uK ONLY CVNA BEIJING-TIANJIN-TANGGU EXPRESSWAY PROJECT Table of Contents Page No. Loan Credit and Project Summary ........ . . . . .. . . . . .. . . ............. iv I. THE TRANSPORT SECTOR A. EconomicSetn .........,, ....1 C. Investment . ............ .................. 2 D. Transport System.. ..................... . .... .. 2 E. Transport Issues and Objectives in the 19809............. 4 II. HIGHWAY SUBSECTOR A^. Network .."... ,,.,, ............. 5 B. Traffic Growth and Characteristics6........9s.......... 6 C. The Vehicle Fleet,, .. .................... 7 D. The Trucking Industry ....... . 8 E. Vehicle Operating Costs, Trucking Tariffs and Profit..... 8 F. Highway Administration.,,...,,,,,,, ........ ........ . .. ... 9 G. Planning, Budgeting and Financing ...................... 9 H. Engineering ... i......... , , , , * Li I. Construction and Maintenance.,...... , , ., 11 J. Road Safety........a 12 K. Staff Training ..... 12 L. Highway Development: Policy and Objectives for 1980s..... 13 M. Previous Bank Financed Project in Highway Subsector r..... 13 III. THE PROJECT A. Project Formulation and Preparation..................... 14 B. Project Objectives ...................... ,. . 14 C. D etailed Features.. ... ... . 15 D. Cost Estimates .....g......o............................ 19 E . F in)a nc ing a a* . ...a.a.....a... , . a , ,,, ..0. , . ........ 6 1 9 F. imp;lementation ,,,,,,. ,, ....... .**... 21 G. Procurementa. Effect.............. . . ..... .. .. 22 H. Disbursements,,, ......................,,,. . ,,,.,, ..... 24 I. Auditing, Reporting and M4onitoring.,,, .......................... ,,,,..., 25 J. Environmental Efcs,,, 25 The project was appraised and this report was prepared by S. Teravaninthorn (Economist) and B. P. Kennedy (Engineer). F. Johansen (Economist) and H. Yen (Research Assistant) assisted in the appraisal. 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.  - ii - Page No. IV. ECONOMIC EVALUATION A. The Existing Corridor............ *.......... . 26 B. Traffic on the Existing Road (Present and Future) ........ 26 C. Projected Traffic on the Expressways..................... 27 D. Economic Evaluation .................................... . 28 E. Overall Evaluation and Risks ............... 29 V. AGREEMENTS TO BE REACHED AND RECOMMENDATIONS ................. 30 TAILES 1.1 Freight Traffic, 1952-1985 1.2 Passenger Traffic 1952-1985 1.3 Investment in the Transport Sector (Including Posts and Telecomunications) 2.1 Highway Design Standards in China 2.2 Road Pavement Standards 2.3 International Comparison of Vehicle Production in 1930 2.4 Motor Vehicles Manufacturee in and Imported into China, 1980-1984 2.5 Total Freight Transport Handled by State and Social Trucks 2.6 CTC's Vehicle Operating Costs in 1983 2.7 Composition of Vehicle Operating Costs 3.1 1990 Traffic in Terms of Passenger Car Units (PCUs) 3.2 Expressway Design Standards 3,3 Training Program 3.4 Estimated Disbursement Schedule 4.1 Transport Between Tanggu Port and Its Hinterland 4.2 Traffic on the Existing Roads Without Expressway, 1984-2010 4.3 Traffic Growth Assumption, 1984-2010 4.4 Total Traffic on Expressway, 1984-2010 4.5 Project Economic Cost Estimate 4.6 Vehicle Operating Costs on Existing Roads and on Expressway 4.7 Economic Rate of Return and Sensitivity Analysis ANNEXES 1. Project Implementation Schedule 2. Project Monitoring Indices 3. Selected Documents and Data Available in the Project File  - iii - CHATS 1. Organization of the Ministry of Communications (IBRD 30908) 2. Organization of the Highway Bureau at the Ministry of Cormunications (IBRD 26871) 3. Relationship between Central and Provincial Transport Departments (IBRD 26423) 4. Organization of the Education and Science and Technology Bureaus of the HOC (IBRD 26869) 5. Transverse Sections - Road Foundation and Bridges (IBRD 27825) KAPS China Transport System - IBRD 19291 Beijing-Tianjin-Tanggu Expressway Location - IBRD 19661  - iv - CHINA BEIJING-TIANJIN-TANGGU EXPRESSWAY PROJECT Loan/Credit and Project Summary Borrower: People's Republic of China Amount: US$150.0 million equivalent comprising a Bank loan of US$25.0 million equivalent and an IDA Credit of SDR 98.9 million (US$125.0 million). Terms: Loan: 20 years including 5 years of grace at standard variable interest rate. Credit: Standzrd. Project Description: The project aims to assist the Government in meeting the road transport demand in one of the most important and congested corridors in China and in increaring the efficiency and cost effectiveness of the highway subsector. Specifically, the project comprises: (a) construction of a high-standard tolled expressway (142 km) and two connecting roads; (b) technical assistance in improving the planning, development and maintenance of the highway system by setting up a road data bank on the highway network, 5c) studies on (i) method of financing the expansion and improvement of the highway network; (ii) upgrading the quality of local bitumen to be used for road paving and (iii) identifying the appropriate way to operate and maintain the expressway; (d) staff training in the area of transportation planning; and (e) continuing assistance in highway-related research and modernization of design, construction and materials specifications, and civil works contract documentation. Projec. Benefits and Risks: The principal benefits accruing to users of the expressway would be savings in vehicle operating costs and a reduction in accidents. The expressway would be the first such tolled facility to be built in China under international competitive bidding. Therefore, there is some risk of delays in project implementation, which could increase costs. This risk would be reduced by appropriate supervision in the early project stages. Training would also be provided to (i.0C) personnel in construction super- vision and in the maintenance and operation of the new expressway.  v Project Costs: Local Foreign Total --- 7US` milIion) Expressway constructiotu 87.2 115.5 202.7 Equipment for maintenance, operation and monitoring of expressway - 5.0 5.0 Consultant services for supervision, studies, etc. 0.3 5.0 5.3 Staff training - 0.8 0.8 Base Cost 87.5 126.3 213.8 Physical contingencies 8.8 12.6 21.4 Price contingencies 7.4 11.1 18.5 Subtotal 103.7 150.0 253.8 Land acquisition 22.0 - 22.0 Totai Project Costs /a 125.8 150.0 275.8 Financing Plan IBRD - 25.0 25.0 IDA - 125.0 125.0 Covernment 125.8 - 125.8 Total Financing 125.8 150.0 275.8 Estimated Disbursement: Bank Croup FY 1988 1989 1990 1991 1992 S ---- (US$millions)