China - Xiamen Port Project

Document of The World Bank FOR OFFICIAL USE ONLY A'V 3 oo 7-c CHr Report No. 7296-CHA STAFF APPRAISAL REPORT XIAMEN PORT PROJECT CHINA November 16, 1988 Transport and Energy Operations Division Country Department III Asia Regional Office This document has a restricted distribution and may be used by recpients only In the performance of  CURRENCY EQUIVALENTS (as of December 1988) Currency came = Renminbi (RMB) Currency unit 2 Yuan (Y) US$1.00 = Y 3.70 US$0.27 = Y 1.00 US$270,270 = Y 1,000,000 FISCAL YEAR January 1 to December 31 MEASUREMENT EQUIVALE-NTS Metric System British/Chinese 1 meter (m) = 3.281 feet 1 square meter (32) = 10.764 square feet 1 cubic meter (m ) = 35.315 cubic feet 1 kilometer (km) 0.621 mile 0.5396 nautical mile 1 ton-km = 0.621 ton-mile 1 ton = 2,204 pounds 1 hectare (ha) 2.469 acres - 14.992 mu PRINCIPAL ABBREVIATIONS AND ACRONYMS USED AAPRC - Audit Administration of the People's Republic of China ADT - Average Daily Traffic cif - Cost, insurance and freight COSCO - China Ocean Shipping Corporation CNTIC - China National Technical Import Corporation dwt - Dead weight tons ERR - Economic Rate of Return FY - Fiscal Year FYP - Five Year Plan GOC - Government of China LRMC - Long Run Marginal Cost MLW - Mean Low Water MOC - Ministry of Communications MOF - Ministry of Finance MR - Ministry of Railways NPV - Net Present Value XPB - Xiamen Port Bureau nrt - Net registered ton PBC - People's Bank of China SEZ - Special Economic Zone SPC - State Planning Commission Leu rwenty 'oot equivalent unit  FOR OMFCIL USE ONLY CHINA XIAMEN PORT Loan aDd Project Summary Borrower: People's Republic of China Beneficiaries: Xiamen Port Bureau (XPB) Amount: $36 million equivalent Terms: Twenty years, including five years of grace, at the standard variable interest rate. Relending Terms: The proceeds of the loan ($36 million) would be onlent by the GovernRent to XPB through Xiamen Municipal Government (XMG) under subsidiary loan agreements with a 20-year term, including 5 years of grace, at an interest rate of 5X p.a. The foreign exchange risk and commitment fees would be borne by XPB. Project Objectives: The principal objective of the project is to assi3t the Government in its efforts to improve operations, relieve congestion and increase the handling capacity in the ports subsector. The project would provide for infrastructure development, technical assistance, and training to strengthen the port's management and improve its operating capabilities and to address long term aspects of port development. Project Description: The proposed project includes developments at Xiamen (Xiamen Port) port which consist of: (a) construction of one container berth, two multi-purpose berths capable of being converted to container berths as and when needed, and one coal berth, together with the necessary infrastructure including dredging, reclamation, pavement, roadways, railways, power, water supply and sewerage systems; (b) provision of the required cargo handling equipment, communi- cations and environmental protection equipment, navigation aids, boats and other small equipment; and (c) provision of training and technical assist- ance for master planning, construction supervision, implementation of an action plan to improve port operations, mail,.enance and environmental conditions, and to train the staff in management, operations and financial costing systems. 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 - Risks: The project has no significant risks since all components involve proven technology that has been in extended use in China or in other parts of the world. Additional training will be provided to XPB's petrsonnel to assure the proper operation of the facilities. The only possible risk would be of delay in project start-up due to the first-time use of ICB proce9ures by XPB. To minimize this risk, appropriate Bank assistance and supervision will be provided in the early stages. Estimated Project Costs: Local Foreign Total (Xiamen Port) -