China - Shandong Provincial Highway

 ICRR 10099 Report Number : ICRR10099 ICR Review Operations Evaluation Department 1. Project Data : OEDID : OEDID: C2025 Project ID : P003523 Project Name : Shandong Provincial Highway Country : China Sector : Highways L/C Number : C2025-CHA/L3073-CHA Partners involved : Prepared by : Binyam Reja, OEDST Reviewed by : Hernan Levy Group Manager : Roger Slade Date Posted : 07/10/1998 2. Project Objectives, Financing, Costs and Components : Objectives : To assist the Shandong Provincial Government in (i) meeting the transport demand in the most important and congested corridor, and (ii) improving the management of the road network by introducing modern planning and management techniques . Components : (a) construction of 319 km, four-lane divided, access controlled highway between Jinan, the provincial capital, and Qingdao, one of China's major seaports, (b) consulting services for construction supervision and training, (c) provision of specialized equipment and technical assistance for evaluating road pavements and strengthening paved roads, (d) equipment to set up computerized Road Data Bank, (e) provision of road maintenance, traffic monitoring and communication equipment, (f) staff training, and (g) assistance in improving road safety. Cost: Cost : Total project cost was: US$ 702 million, of which the Bank provided US$ 60 million in loan and US$ 50 million in credit. The loan and credit were fully disbursed . 3. Achievement of Relevant Objectives : The main project objective of meeting road transport demand in the heavily trafficked Jinan-Qingdao corridor was achieved . The construction of 319 km Jinan-Qingdao Expressway (JQE) was completed and opened to traffic by the end of 1993, as scheduled. Specialized equipment, including equipment for traffic monitoring and toll collection, have been acquired and are used in the operation and management of the road network . Training and technical assistance under the project were also successfully carried out and have increased the capacity of the Shandong Provincial Transport Department (SPTD). 4. Significant Achievements : The significant achievement of the project was (i) the construction of the Jinan -Qingdao Expressway, and (i) the technology transfer gained in the areas of tolled -expressway operations and management through training and study abroad, as well as the acquisition of modern equipment for traffic monitoring and tolling . 5. Significant Shortcomings : Contractors' performance was less than satisfactory . Some civil works were not carried out according to the technical specifications. The road safety program was not adequately achieved in part due Central Government's decision to transfer road safety responsibilities from SPTD to Public Securities departments nationwide . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: Partial Substantial The project substantially enhanced the institutional capacity of the Shandong  Provincial Transport Department through an effective training program, acquisition of modern technology, and the development of the Road Data Bank and Pavement Management System. Sustainability : Likely Likely Bank Performance : Satisfactory Satisfactory Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : Improving road safety is a complex and challenging undertaking that is rarely achieved in the context of a single project; it requires a long-term commitment and a broader intervention including institutional and policy reform . 8. Audit Recommended? Yes No 9. Comments on Quality of ICR : The ICR is satisfactory and its economic analysis is sound . The ICR could have been improved by (i) a concise and focused discussion of the project implementation experience and its achievements, and (ii) a more detailed discussion on the institutional set up of the Management Bureau of JQE and future government plans to sell a portion of the expressway and its implications for future highway financing .