China - Ningbo and Shanghai Ports Project : Shanghai Port

Document of The World Bank FOR OFFICIAL USE ONLY ,A/ 30oC)6 - Q - Czp/t Report No. 7257-CHA STAFF APPRAISAL REPORT NINGBO AND SHANGHAI PORTS PROJECT SHANGHAI PORT CHINA November 16, 1988 Transport and Energy Operations Division Country Department III Asia Regional Office This document has a resticted distibution and may be used by rients only In the performance of  CURRENCY EQUIVALENTS (as of July 1988) Curtency name = Renminbi (RMB) Currency unit 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 EQUIVALENTS Metric System British/US System 1 meter (m) = 3.281 feet 1 square meter (s2) = 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 PRINCIPAL ABBREVIATIONS AND ACRONYMS USED AAPRC - Audit Administration of the People's Republic of China ADT - Average Daily Traffic CHC - Cargo Handling Corporation CIECC - China International Engineering Consultancy Corporation cif - Cost, insurance and freight COSCO - China Ocean Shipping Corporation CNTIC - China National Technical Import Corporation dwt - Deadweight tons ERR - Ecrnomic Rate of Return FYP - Five Year Plan GOC - Government of China LRMC - Long Run Marginal Cost MLW - Mean Low Water MOC - Ministry of Conmunications MOF - Ministry of Finance MR - Ministry of Railways NPV - Net Present Value SHB - Shanghai Harbor Bureau SHS - Shanghai Harbar Superintendency nrt - Net registered ton PBC - People's Bank of China SEZ - Special Economic Zone SPC - State Planning Commission teu - Twenty-foot equivalent unit  FOR OFFICLAL UtSE ONLY CHINA NINGBO AND SHANGHAI PORTS PROJECT SHANGHAI PORT Loan and Project Summary Borrower: Peor'e's Republic of China. Beneficiaries: Ningbo Port Authority and Shanghai Harbor Bureau Amount: $76.4 million equivalent: $30.0 million for Ningbo and $46.4 million for Shanghai. Terms: Twenty years, including five years of grace, at the standard variable interest rate. Relending Terms: Out of the proceeds of the loan, $46.4 million equivalent would be onlent by the Government to SHB under a subsidiary loan agreement with a 20-year term, including 5 years of grace, at an inlterest rate of 6.2Z p.a. The foreign exchange -risk and the commitment fees would be borne by SHB. Project Objectives: The principal objective of the project is to assist 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 at two key ports in China, modern equipment needed to operate the new facilities, as well as technical assistance and training to strengthen the ports' management, improve operating capabilities, and address long term aspects of port development. Project Description: The proposed project includes,developments at Shanghai port which consist of: (a) the construction of general and multipurpose terminals at Baoshan and Guangang comprising eight berths each; (b) the construction of two coal handling berths at Zhujiamen; (c) the reconstruction of four berths at the Minsheng terminal; (d) the construction of an 80,000-ton capacity grain silo; (e) the acquisition of cargo handling equipment; (f) a study to develop a port costing and management information system framework to help China's ports in establishing cost-based tariffs; (g) a review of the Master Plan of Shanghai port by a panel of experts; and (h) 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.  - ii - carrying out of a number of measures to improve the efficiency and safety of the port. Risks: The only possible risk in the project is that it may be delayed in the course of construction. On the basis of preparations already made by SHB, this risk is not considered to be a serious one. Estimated Project Cost (Shanghai Port): Local Foreign Total