China - Fifth Railway Project

. Document of The World Bank FOR OFFICIAL USE ONLY Report No. 8439-CHA STAFF APPRAISAL REPORT CHINA FIFTH RAILWAY PROJECT AUGUST 28, 1991 Transport Operations Division China and Mongolia Department Asia Regional Office This document has a resticted distribution and may be used by reipients only in the perfonnance of their officiiul duties. Its contents may not othenrise be disclosed without World Bank auth wization.  CURRENCY EQUIVALENTS (as of Apr'l 1991) Currency Name: Rennlinbi Currency Unit: Yuan (Y) $1.00 = Y 5.22 $0.19 = Y 1.00 FISCAL YEAR (FY) January 1 - December 31 WEIGHTS AND MEASURES ctkm = converted tkm or traffic unit (lpkm = ltkm) ha = 2.47 acres km kilometer [=0.621 mile (mi)] kWh = kilowatt hour (=860.42 kcals) m = meter (= 3.281 feet) M2 = square meter (=10.764) no = cubic meter (=35.315 cubic feet) Mp = million passengers mpkm = million passenger-kilometers mppy = million passengers per year mt = million tons mtkm = million ton-kilometers mtpy = million tons per year mu = 0.1647 acre - 0.0667 hectare (ha) pkm = passenger-kilometer (=0.621 passenger-mile) tkm = ton-kilometer (=0.621 ton-mile) ABBREVIATIONS AND ACRONYMS CBC = Construction Bank of China CIF = Cost, Insurance, and Freight EARRP = Economic Analysis of Rural Road Projects EPPEC = Economic Prices for Project Evaluation in China ERR = Economic Rate of Return FOB = Free on Board FYP = Five-year Plan GNP = Gross National Product GOC = Government of China GVIAO = Gross Value of Industrial and Agricultural Output ICB = International Competitive Bidding LCB = Local Competitive Bidding MOE = Ministry of Energy MOF = Ministry of Finance MR = Ministry of Railways NPV = Net Present Value POH = Periodic Overhaul RIS = Railway Investment Study SOE = Statement of Expenditure SPC = State Planning Commission 7FYP = Seventh Five-Year Plan 8FYP = Eighth Five-Year Plan  FOR OF0CIAL UK ONLY CHINA FIFTH RAILWAY PROJECT Loan and Proiect Summary Borrower: People's Republic of China. Beneficiary: Ministry of Railways. Amount $330.0 million equivalent. Termst 20 years including 5 years of grace at the Bank's standard variable interest rate. Onlending Terms: Between the Ministry of Finance and the Hinistry of Railways: 20 years, including 5 years of grace at the interest rate of 5 percent per year. MR will bear the foreign exchange risk. Project ObLectivess The overall objective of the project is to ensure that MR becomes more efficient and continues to be financially viable through better operations, maintenance practices, investment planning, and tariff policies. The specific objectives are to assist MR to (a) introduce recent developments in rail tech- nology and maintenance and rehabilitation practices, in order to enhance efficiency and capacity; (b) develop systemwike plans and planning tools for its major subsectors; tc) adopt modern planning techniques for establishing investment priori- ties and tariff restructuring; and td) add urgently needed capacity in a priority corridor. Prolect Descriptions The proposed project would consist of (a) two systemwide com- ponents, to assist MR on a pilot basis to introduce recent technology and advanced materials in the maintenance and reha- bilitation of track, and to meet the shortage of critically- needed items of materiai, components, and equipment for reha- bilitation of locomotives and rolling stock; (b) two capacity expansion components, to complete double-tracking of the 944 km Zhegan (Zhuzhou-Hangzhou) line, and to expand capacity at the Xuzhou marshalling yards; and (c) an action plan for the implementation of the Railway Traffic Costing System lead- ing to formulation of recommendations for tariff restructur- ing. In addition, the project will rely heavily on five stud- ies which started as part of the project preparation, focusing on track maintenance and rehabilitation, locomotive and roll- ing stock maintenance and rehabilitation, an integrated system plan for electrification, an integrated system plan for tele- communications, and a railway investment studv. 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.  - it - Project Costs: Local Foreign Total