China - Three Ports Project

Document of The World Bank FC FOR OFFICIAL USE ONLY RESTRICTED Report No. P-3392-CHA REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO $124 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR THE THREE PORTS PROJECT October 14, 1982 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 Currency - Renminbi $1.00 Yuan (Y) 1.75 Y 1.00 = $0.571 ACRONYMS AND ABBREVIATIONS CFS - Container Freight Station CHC - Cargo Handling Corporation dwt - dead weight tons HAB - Harbor Administration Bureau HSO - Harbor Superintendency Organization MOC - Ministry of Communications GOVERNMENT OF THE PEOPLE-S REPUBLIC OF CHINA FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY CHINA THREE PORTS PROJECT Loan and Project Summary Borrower: The People's Republic of China Amount of IBRD Loan: $124 million Terms: 20 years, including 5 years of grace, with interest at 11.61X per annum. Project Description: The project would assist the Borrower in modernizing and expanding facilities at the three ports of Huangpu (Guangzhou), Shanghai and Tianjin. To meet the short-term traffic requirements of these ports, the project would provide containerized cargo handling equipment at all three ports, as well as bulk coal handling equipment at Huangpu. The project would also include the training of personnel in the opera- tion of the container and coal terminals, and computer- ized management information systems for container operations. As part of the project, the Government would undertake a containerization study of the hinterlands of the ports of Huangpu, Shanghai, and Tianjin, to identify intermodal terminals, other facilities and transport equipment required to optimize the door to door transport potential of the containerization of cargo through these ports. The main direct beneficiaries of the proposed project would be ship operators, and secondarily, cargo owners and the ports; the Chinese share of project benefits is estimated at about 70%. Because the project uses proven technology, and the implementing agencies have successfully completed similar works in the past, implementation risks are small. Staff training would help to avoid the risk of initial problems with container handling operations. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Estimated Cost: Local Foreign Total ------ ($ million) ------ I. Huangpu (a) Civil works, coal terminal 31.1 - 31.1 (b) Civil works, container terminal 45.0 - 45.0 (c) Equipment, coal terminal 2.1 31.4 33.5 (d) Equipment, container terminal 0.4 7.7 8.1 Subtotal 78.6 39.1 117.7 II. Shanghai (a) Civil works, container terminal 41.2 - 41.2 (b) Equipment, container terminal 1.7 27.0 28.7 Subtotal 42.9 27.0 69.9 III. Tianjin (a) Civil works, container terminal 112.7 - 112.7 (b) Equipment, container terminal 2.1 32.6 34.7 Subtotal 114.8 32.6 147.4 Training 1.5 1.5 3.0 Containerization study 2.0 - 2.0 Customs duties 15.8 - 15.8 Base cost, all three ports 236.3 98.7 335.0 Contingencies, physical 20.2 - 20.2 Contingencies, price 26.1 25.3 51.4 Total project cost 301.9 125.5 427.4 Financing Plan: Local Foreign Total ------ million) ------ IBRD Loan - 124.0 124.0 Government sources 301.9 1.5 303.4 Total 301.9 125.5 427.4  - iii - Estimated Disbursements: Bank FY 1983 1984 1985 1986 ------ ($ million) ------ Annual 25 35 45 19 Cumulative 25 60 105 124 ERR: 29% Staff Appraisal Report: No. 3653-CHA, dated October 14, 1982.  REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE PEOPLE S REPUBLIC OF CHINA FOR THE THREE PORTS PROJECT 1. I submit the toliowing report and recommendation on a proposed loan to the People