China - Guangdong Provincial Highway Project

/ +< 5 ) ( C </il Document of The World Bank f'OR OFFICIAII USE ONLY Mf CHRO ()F I E H O' PY Rerpoi t Noi. 1 01799--CHA 'ype: (Ar ) Ti t.e: I GUANGDOrW PR()VTNO5IAJ, HIGHWAY F' Report No. 10799-CHA A I th : STA RPO , EX. :31'1,928 rr - A7989 D)ept. .:A2TP STAFF APPRAISAL REPORT CHINA GUANGDONG PROVINCIAL HIGHWAY PROJECT OCTOBER 20, 1992 Transport Operations Division Country Department II East Asia and Pacific Regional Office This document has a restricted distribution and ma} be used by recipients only in the perfornance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (as of June 30, 1992) Currency name Renmir,bi Currency unit Yuan (Y) $1.00 Y 5.46 $0.19 Y 1.0 FISCAL YEAR Tanuary 1 - December 31 WEIGHTS AND MEASURES 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 mile (mi) 1 square meter (sq m) = 10.76 square feet (sq ft) 1 square kilormter (sq km) 0.4 square miles (sq mi) 1 hectare (ha) = 0.01 (sq ';n) = 2.47 acres (ac) = 15 mu 1 mu 666.7 sq m = 0.0667 ha 1 kilogram (kg) 2.2046 pounds (lbs) 1 metric ton (m ton) = 2,204 pounds (lbs) ABBREVIATIONS AND ACRONYMS 8FYP - Eighth Five-Year Plan (1991-95) E&M - Electrical, electronic and mechanical EA - Environmental Assessment EAP - Environin.ntal Action Plan EBM - Expenditure Budgetting Model EIRR - Economic Internal Rate of Return FYRR - First Year Rate of Return GOC - Government of China GOVAI - Gross Output Value of Agriculture and Industry GP - Guangdong Province GPCD - Guangdong Provincial Communications Department GPCTS - Guangdong Province Comprehensive Transport Study GPEPB - Guangdong Provincial Environmental Protection Bureau GPFC - Guangdong Provincial Freeway Company GPHAB - Guangdong Provincial Highway Administration Bureau GPHDI - Guangdong Provincial Highway Design Institute GPPC - Guangdong Provincial Planning Commission HDM - Highway Design and Maintenance Model HSRI - Highway Scientific Research Institute ICB - International Competitive Bidding JST - Joint Supervision Team LCB - Local Competitive Bidding MOC - Ministry of Communications NPV - Net Present Value PMS - Pavement Management System PRC - The People's Republic of China PSB - Public Security Bureau RAP - Resettlement Actioa Plan RDB - Road Data Bank RIP - Road Improvement Program RMF - Road Maintenance Fee ROW - Right of Way RSPP - Road Safety Pilot Pro gram SEA - Sectoral Environmental Assessement SEAP - Sectoral Environmental Action Plan SEZ - Special Economic Zone SPC - State Planning Commission TCU - Technical Coordinating Unit  FOR OMCIUL USE ONLY CHIM GUANGODOG PROVINCIAL HIGHWAY PROJECT Loan andt Prolect Summary People's Republic of China Beneficiary: Guangdong Province &anOuntt $240 million equivalent 20 years, including 5 years of grace, at the Bank's standard variable interest rate. Proiect Objectives: The project has the following specific objectives: (a) to relieve congestion in two major traffic cor- ridors; (b) to improve other national and provin- cial roads carrying substantial volumes of traffic; (c) to promote the transfer of highway technology through training and the provision of equipment; (d) to further develop institutional capability in highway design, planning and prioritization; and (e) to implement reforms of highway financing. Proiect Descrintinl:t The project includes: (a) construction on new alignments of the four-lane dividee, access con- trolled, Foshan-Kaiping Highway (80 km) and Longgang-Tanxi Highway (146 km); (b) a Road Improvement Program (RIP) for upgrading and reha- bilitating about 1,260 km of provincial and national roads; (c) consultant services for con- struction supervision of the highways; (d) techni- cal assistance to support analysis of highway finances in Guangdong Province and to formulate an action program for implementin,, reforms; (e) a road safety pilot project; (f) further development of the Road Data Bank and Pavement Management System; (g) purchase of equipment for road laboratories, environmental protection, road research, the road data bank, the pavement management system, road maintenance and highway operations; and (h) staff training. Proiect Benefitss Primary benefits from the Foshan-Kaiping and Longgang-Tawxi Highways and the Road Improvement iogram will be in the form of road user cost sav- ings resulting from improved vehic&e operating costs and time savings due to improved pavements and reduced length of the new highway. Other bene- fits will stem from reduced congestion on the 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.  existing roads, including better conditions for bicycles and aSricultural traffic, and accelerated industrial and agricultural growth based on improved transport facilities. Additional benefits due to the Road Improvment Program will accrue from maintenance cost savings on the improved provinciallcounty road network. Because of the difficult subsoil conditions along the alignment of the ioshan-Kaipgng and Longgang- T&nxi Highways, the major risk is delay in the completion of the highways and the quality of con- struction. To counter this risk, two test embank- ments are being built In advance of the main works to investigate the extont and timing of soft soil treatments. Since the implementing agency for the two highways is a first-time executing agency for a Bank project, t2tere is also a risk in implementing the major highway components of the project in a timely manner. However, the preparation of the project Was assisted by the Bank's experience in previous provincial highway projects, and by the more active involvement of the Ministry of Communi- cation.; this enh4aced role of the Ministry is expocted to continue into future projects. To min- imize the risks, the project was designed with the assistance of foreign xoprts, prequalification of contractors was made particularly stringent, and supervision arrangements were carefully formulated to ensure regular monitoring and effective quality control.  ZYoLecJ Co2St Local Foreian Total -------- ($ million)