China - Jiangsu Provincial Transport Project

 Jiangsu provincial transport project Report No: ; Type: Report/Evaluation Memorandum ; Country: China; Region: East Asia And Pacific; Sector: Highways; Major Sector: Transportation; ProjectID: P003572 The China Jiangsu Provincial Transport Project supported by Loan 3316/Credit 2226-CHA for US$100 million and a Credit of US$53.6 million equivalent, was approved in FY91. The loan and credit were closed on schedule in FY96, in spite of a two year suspension of activity from 1989 to 1991. The Implementation Completion Report (ICR) was prepared by the East Asia and Pacific Regional Office. A summary of the Borrower’s report is included as Annex 3. The project’s objectives were: (i) to help alleviate the most serious constraints to economic development caused by inadequate transport infrastructure in the Jiangsu Province; and (ii) to assist the province to upgrade the planning, budgeting and implementation of its transport programs, and to develop more efficient civil works construction units. The project consisted of: (a) rehabilitation of about 450 km of provincial roads in Jiangsu Province, which is the leading producer of agricultural and industrial goods in China; (b) upgrading the Nanjing-Shanghai highway to a higher standard; (c) rehabilitation of a 17-km section of the Grand Canal at Danyang; (d) construction of a new shiplock at Nantong and an adjacent bridge; (e) technical assistance, computers and laboratory equipment, and consultant services in road management, facility design and transport studies; (f) training of Jiangsu Provincial Communications Department (JPCD) staff in supervision and quality control of road construction; and (g) assistance to the JPCD, including procurement of road maintenance equipment, to support its construction units. The project’s objectives were achieved, except for the training. All the civil works were completed with generally satisfactory quality and in accordance with the Bank’s guidelines for environmental protection and resettlement. Design changes to accommodate unforeseen factors, expansion in the scope of work, and inflation increased costs by 39 percent. The economic rates of return (ERR) of the main subprojects +ranging from 20 to 60 percent at appraisal–vary from 20 to 50 percent in the ICR. For a few subprojects the impact of cost overruns was more than offset by higher than expected traffic volumes. The project’s re - estimated and weighted aggregate ERR at completion is 38.5 percent. The objectives for institutional development were modest but appropriate. The road data bank and the system of pavement management used methods that were compatible with those in other provinces. The road data bank and the pavement management system were implemented on a pilot basis and cover 2,100 km of the national road network. More effort and budgetary support are needed to integrate this system as a management tool in the JPCD and to extend its use to the entire provincial road network. The staff training program did not achieve its objective; only one fourth of the targeted number of professionals received training. OED rates project outcome as satisfactory, institutional development as moderate, and sustainability as likely. Bank performance is rated as satisfactory. These ratings are consistent with those in the ICR. A major lesson applicable to other large countries is the importance of coordination between the highway administration and local and regional agencies and jurisdictions to ensure that other interventions which may affect project roads and traffic volumes are taken into account. Another lesson is that to be successful, staff training programs require careful planning to meet the client’s needs, schedules and language capabilities. The ICR is of highly satisfactory quality. It provides a thorough economic analysis and a clear description of the problems and accomplishments of the project. No audit is planned.