China - Henan Highway Project

/ ~ ~ ) /\ ...... / ( / Document of The World Bank FOR OFFICIAL USE ONLY MI ( POAlF I CI]Fv CO'tPY hepcirt No. :1 0653-CHA Type: ( CAR) Ti tl r,: HENAN HIGHWAY PRO,TJFCT Report No. 10683-C1A Aithor: LEMVY H Fxt.. :84021 hFocrri:A7 099 Dept. : A.2IP STAFF APPRAISAL REPORT CHINA HENAN HIGHWAY PROJECT OCTOBER 19, 1992 Transport Operations Division China and Mongolia Department East Asia and Pacific Region 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 March 1992) Currency name - Renminbi Currency unit - Yuan (Y) - 100 Fen $1.00 m Y 5.45 $0.18 - Y 1.0 $1.0 million - Y 5.450 million $183,486 = 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) 5 10.76 square feat (sq ft) 1 square kilometer (1m2) - 0.4 square miles (sq mi) 1 hectare (ha) - 0.L1 (km2) - 2.47 acres (ac) - 15 mu I mu - 666.7 sq m - 0.0667 ha 1 kilogram (kg) - 2.2046 pounds (lbs) I metric ton (m ton) 2,204 pounds (lbs) PRINCIPAL ABBREVIATIONS AND ACRONYMS USED 6th FYP - Sixth Five-Year Plan (1981-85) 7th FYP - Seventh Five-Year Plan (1986-90) 8th FYP - Eighth Five-Year Plan (1991-95) EA - Environmental Assessment EAP - Environmental Action Plan EIRR - Economic Internal Rate of Return FINNRA - Finnish National Road Administration FYRR - First Year Rate of Return GOVAI - Gross Output Value of Agriculture and Industry HAB - Highway Administration Bureau HGHCA - High-Grade Highway Construction Authority HPCD - Henan Provincial Communication Department HPDI - Highway Planning and Design Institute HPEPB - Henan Provincial Environmental Protection Bureau HPEPEC - Henan Provincial Expressway Project Executive Commission HPEPRI - Henan Provincial Env:ronmental Protection Research Institute HSRI - Highway Scientific Research Institute ICB - International Competitive Bidding LCB - Local Competitive Bidding MOC - Ministry of Communications MOF - Ministry of Finance NPV - Net Present Value PMS - Pavement Management System PRC - People's Republir. of China PTD - Provincial Transport Department RAP - Resettlement Action Plan RDB - Road Data Bank RDP - Road Development Program RIP - Road Improvement Program SAA - State Audit Administration SPC - State Planning Commission TCU - Technical Coordinating Unit, Ministry of Communications vpd - Vehicles per day  FOR OMCIAL USE ONLY BREAN tlGlWAY PROJECT Loan and Pro1eet Summarv AMU=owers People's Republic of China Beneficl=ar s Henan Province $120 million equivalent Zima' 20 years, including 5 years of grace, at the Bank's standard variable interest rate Pro ect Ob1ectilves The project objectives are to: (a) Improve Henan's road network, with a particular focus on relieving congestion on the heavily trafficked east-west corridor, linking Renan end other provinces with the new port of Lianyun Gang; rehabilitating and expanding the provincial net- work, whose traffic is rising significantly throughout; end improving provincial and rural roads; (b) strengthen highway sector agencies, mainly in the areas of invest- ment planning, construction end maintenance management, and environment; and (c) making recomendations for Improving the efficiency of road freight transport ser- vices, with a particular emphasis on enhancing competi- tion and facilitating entry by collective and small private operators. Prolect Descriutions The project consists ofs (a) civil works comprising construction of a 120-km, two-lane axpresaway between Zhengzhou and Luoyang; rehabilitation and improvement in northwest Henan of five provincial roads (total of 180 km) and six rural roads (total of 112 km) mainly located in poor areas; and a road improvement program for rehabilitating and upgrading provincial and rural roads (total of about 740 km) throughout the province; (b) equipment for highway maintenance and operations, Including environmental monitorings and (c) an institu- tional strengthening and reform component, which will: provide equipment and training to five key agencies of Henanos Communications Department; offer a comprehensive training program for highway personnel at all levels; and study trucking services in the Province and ways to Improve its efficiency. Pro1get lanefits: Reductions in vehicle operating costs, travel time and accidents will be the main benefits of the road invest- ments. In addition, the expressway will generate sub- stantial benefits to the traffic remaining on the exiet- This document has a restricted distribution and may be used by recipients only in the performance of their official dudes. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - 4 road, which includes a large proportion of normotor- ized vehicles, in the form of reduced congestion and decrease in the aseident rate. Benefits from the rural roads will otem from the provision of all-weather, motorized accee~' for many poor areas to and from markets and social services. Risks: Henan Highways Department lacks experience with the construction of modern highways, and with international procurement methods. This poses a risk of delay in completing the expressway. In line with findings of ongoing Bank-financed highway projects, the following actions are being taken to minimize these risks: (a) detailed review of design with assistance of inter- national consultants; (b) tightening of the prequalifi- cation process for contractors; and (c) strengthening of project supervision arrangements and training of local staff. An additional risk of delay stems from an arche- ological zone which the exprossway traverses, and the related engineering uncertainties. To address this situation, Henan authorities conducted detailed surveys, including over one million borings, so as to minimize chances that during construction new archeological finds could be encountered and to prevent damage to cultural property. In addition., works in this zone have been started ahead of the other sections to provide an addi- tional time margin.  Estimated Coat:s Local Foreian Total ~~~~- ($ million) ----- Zhengzhou-Luoyang Expressway 49.0 49.0 98.0 Provincial and rural roads in northwest Renan 22.4 11.4 33.8 Road Improvement Program 45.7 27.6 73.3 Subtotal 117.1 88.0 205.1 Supervision of con-truction 2.3 1.7 4.0 Equipment 1.3 10.2 11.5 Institutional strengthening 0.3 1.8 2.1 Training 0.1 0.7 0.8 Trucking Study 0.3 0.2 0.5 Total base cost 121.3 102.6 223.9 Physical contingencies 11.9 9.0 20.9 Price contingencies 21.6 8.5 30.0 Land acquisition & resettlement 25.9 0.0 25.9 Total vroiect cost L 180.7 120.0 300.7 Proiect Financing Provincial government 144.0 - 144.0 Central government 36.7 - 36.7 IBRD - 120.0 120.0 Total financina required 180.7 120.0 300.7 gEtimated Disbursements: Bank PY 1993 1994 1995 1996 1997 1998