China - Jiangxi Provincial Highway Project

 Jiangxi provincial highway project Report No: ; Type: Report/Evaluation Memorandum ; Country: China; Region: East Asia And Pacific; Sector: Highways; Major Sector: Transportation; ProjectID: P003485 CHINA: Jiangxi Provincial Highway Project (Credit 1984-CHA) The China Jiangxi Provincial Highway Project, supported by Credit 1984-CHA for US$61 million, was approved in FY1989. The total project costs were US$173.69 million. The credit was fully disbursed and closed on schedule in December 1995. The Implementation Completion Report (ICR) was prepared by the East Asia and Pacific Regional Office with the Borrower’s contribution. A summary of the borrower's report is included as Appendix B. The project’s objectives were: (i) to provide urgently needed road capacity in the transport corridor between the provincial capital Nanchang and the inland port of Jiujiang at Chang River, some 100 km north of Nanchang and a bridge across the Gan River at Nanchang; and (ii) to undertake staff training and transfer of technology in planning, pavement strengthening, and maintenance management. The project consisted of: (a) construction of a 113 km two- lane highway between Nanchang and Jiujiang; (b) construction of a double-deck bridge across the Gan River at Nanchang; (c) provision of maintenance and operation equipment for the highway and the bridge; (d) setting up a road data bank and a pavement management system and providing the necessary equipment and expertise for them; (e) assistance and training in pavement strengthening methods; and (f) training of Jiangxi Provincial Transport Department (JPTD) and Nanchang municipal staff in highway and transport planning. The project’s objectives were achieved. With the help of strenuous efforts by the Bank and the Borrower, all the civil works were completed satisfactorily and in agreement with Bank policies on resettlement and the environment. There was a 63 percent cost overrun due to changes to remedy inadequate base design and standards, many unforeseen factors, substantial changes in the scope of work, and inflation and delays in construction. The economic rates of return (ERR) of the main subprojects +ranging from 30 to 38 percent at appraisal+ vary from 4 to 30 percent in the ICR. At completion the project’s ERR was re-estimated at 22.6 percent. Except for the Nanchang-Jiujiang Highway, subprojects had lower ERRs than expected because increased costs were not offset by benefits from increased traffic volumes. For the “connecting