China - Shijiazhuang Urban Transport Project

Report No. PID8530 Project Name China-Shijiazhuang Urban Transport (@) Region East Asia and Pacific Region Sector Urban Transport Project ID CNPE56596 Borrower(s) MINISTRY OF FINANCE Implementing Agency Address MUNICIPALITY OF SHIJIAZHUANG Shijiazhuang Urban Transport Project Office (PO) #271, Shengli Beijie, Shijiazhaung, 050041 Contact Person: Liu Shuitian Tel: 86-311-6816540 Fax: 86-311-6816540 Email: cjtzbgsq@public.sj.he.cn Environment Category A Date PID Prepared December 8, 2000 Projected Appraisal Date January 2001 Projected Board Date March 27, 2001 1. Country and Sector Background The city of Shijiazhuang. The Shijiazhuang (SJZ) Municipality is the capital of Hebei Province. The municipality consists of the city and 17 suburban counties, with a total population of over 8.6 million. It is expected to grow to 9.6 million by 2010. The city is located at the junction of several national railways and highways and has a population of 1.5 millions (including floating population). The city is expected to grow to 1.9 million by 2010. Around this transport hub, the city has developed into an important industrial and commercial center with many manufacturing industries and wholesale businesses. Between 1993-98, the municipality's real per capita GDP grew at 9 percent per year and is expected to continue to grow rapidly.Land Use. The current master plan was formulated in 1991 and modified recently to accommodate changes in the urban land use distribution. The built-up area is divided into four sections by the two intersecting national railways, one which runs north-south (within the inner ring road) and divides the center of the city into two parts. The second railway runs east-west between the first and second ring roads. The major industrial areas are located in both northern and southern parts of the city, while the residential and commercial land use occupies much of the central area, which are expanding, towards both the east and west. In addition, six (suburban) districts are developing along radial highways outside the central core. The associated road network plan includes three concentric ring roads, an arrangement which is very common in China. Vehicle ownership. Some brief statistics:There are 72 vehicles/1000 residents, of which 17 are passenger vehicles, excluding taxis and motorcycles. Between 1990 and 1998, the number of registered motor vehicles (excluding motorcycles) increased at 10.3 percent per year within the municipality with higher growth rates for motorcycles.Vehicle ownership is projected to reach 150 vehicles/1000  residents by 2010, of which approximately 509 are expected to be passenger vehicles. Despite the rapid growth of motor vehicles, the role of non-motorized transport has not declined; the number of bicycles and tricycles has increased at 5.7 percent per year between 1990 and 1998. Mode split. Currently, the dominant modes of passenger transport are bicycles and walking. According to the 1998 transport surveys, an average resident makes 3.4 trips per day, this compared to 2.5 trips in 1986. Of all daily person trips, 34 percent are made on foot, 54 percent by bicycle, 5 percent by bus (very low even by Chinese standards), with the balance made by cars, taxis and motorcycles. Public Transport Provision. Public transport services are provided by the Shijiazhuang Public Transport Company (SPTC). It currently employs 5200 operating staff, and operates 1140 buses on 63 fixed routes in the urban, suburban and outlying areas. In addition, the city licenses 86 individually owned and operated minibuses. Between 1987-97, annual ridership declined from 152 million to 136 million passenger trips, despite an increase in operating kilometers from 17 million to 36 million. The proportion of small buses within the operating fleet has grown in recent years from 50t in 1994 to 66t in 2000. Until this year, the smaller buses were allowed to charge a higher fare and were more profitable.Road Network. This project is located within the Second Ring Road. The road network within this area is a planned grid system with two ring roads imposed on top of the original grid. The Second Ring Road is complete and is approximately 12 km wide (east-west) and 8.5 km deep (north to south). The city is linked to other parts of the province by nine radial roads that start at the Second Ring Road. The first or inner ring road is currently not well delineated but can be said to be formed by two of the more important north-south and two of the most important east-west routes. This ring is approximately 5 km. wide and 3.5 km. deep. Within the second ring road, there are only four east-west routes compared to 12 north-south routes. This shortage of alternative east-west routes results in congestion, particularly at the railway crossings. The five railway crossings to the north of the city center are also a source of congestion. Other problems include, the lack of a clear functional road hierarchy (due in part to inconsistent standards) and a number of important "missing links" within the secondary road network. Finally, road development has failed to keep up with new land use development, which has occurred mostly around the fringe of the city, outside the second ring road. Institutions. The relevant municipal agencies report to a single Vice-Mayor. However, the authority of the agencies is still fragmented with the Urban Construction Commission being responsible for construction, the traffic police for traffic management, the Shijiazhuang Public Transit Company for bus operation, and the Environmental Bureau for all environmental matters. The Shijiazhuang Maintenance Department, part of the Urban Construction Commission, performs maintenance on all city roads, except the 2nd Ring Road, which is maintained by a separate Department. A summary of issues in Shijiazhuang Road network needs reinforcement. The primary road network needs to be reinforced while there are "missing links" within the secondary road network. Capacity restrictions exist at the major railway crossings.Increasing congestion. Vehicle congestion is concentrated within the "box" created by the first ring road, particularly in the vicinity of the Railway Station and at the railway crossings. Average vehicles speeds are estimated to be around 11 km/hr. in this area. Congestion is particularly severe at the railway crossings.The operational efficiency of roads is low and traffic management techniques are not well -2 -  developed. Roads are poorly managed, signage is simple with inadequate control over parking. Junction capacity is reduced due to poor junction layouts, a lack of channelization, with only limited attempts to manage conflicts. In sum, traffic management is generally limited to enforcement by the traffic police and some traffic lights at about 50 junctions. However, recently, the traffic police have been experimenting with new and more sophisticated junction layouts and control arrangements. A low level of public transport provision. The level of service provided by the existing network of services is also low. The management of the bus company reflects the needs of a planned economy. Market based management practices are lacking.Inadequate facilities for bicycles and high risks for their riders. Bicycles are the dominant mode of transportation within the city. However, bicycle users are too often at risk and the network of segregated bicycle lanes is fragmented. Further, while roadway rights of way are wider than average in SJZ, arrangements for the large flows of bicycles are often inadequate, particularly at junctions.Facilities for pedestrians are inconvenient and risky. Pedestrians are at risk at many locations. Most existing roads have adjacent pedestrian sidewalks. However, road crossings both between and at junctions are inadequate. At junctions, pedestrian facilities are designed to control flows rather than improving pedestrian convenience. Vehicle parking on sidewalks is also a common problem.Inadequate road maintenance. Visual inspection confirms that road maintenance is inadequate, commonly observed failures including: cracking, settlement of asphalt concrete pavement structures, bleeding, raveling and potholes. The main factors contributing to this situation include lack of equipment, poor management maintenance and under-funding of maintenance activities. 2. Objectives To foster the development of a more efficient and environmentally sustainable urban transport system in the city of Shijiazhuang while providing a wider set of travel choices for users. 3. Rationale for Bank's Involvement As this project has been prepared, the Bank has been able to assist the city with the development of appropriate policies and practices which benefit all modes of transports, not just motor vehicles. In particular, the Bank helped identify practical options to try and reverse the decline of public transit ridership and for managing road space more effectively, for the benefit of all modes of transport. 4. Description SUTP would finance a critical subset of the investments included in the municipality's transport development strategy, including:A. New road infrastructure. It will include three major elements: road works (25.18 km), railway overpasses and underpasses (4.96 km), and bridges and interchanges (2.98 km). B. Traffic management facilities. This component will specifically finance 2.5 kilometers of exclusive bikeway in addition to the 24 kilometers of bikeway which will be financed as part of the infrastructure components. In addition, the project will finance the channelization of 67 junctions, 8 pedestrian overpasses and other pedestrian management facilities, a pilot bus priority scheme and an Area Traffic Control System (computerized traffic lights), plus a number of smaller traffic engineering and road safety works and activities, technical assistance and equipment. C. Public transport facilities. This -3 -  component will rationalize the layout of the bus station adjacent to the central Railway Station. It will also finance the construction of two bus depots, five suburban bus terminals, bus stop improvements and the procurement of a management information system.D. Improved road maintenance. This component will finance the introduction of modern planning tools and procedures, and the procurement of key pieces of equipment. Project conditionally will require an increase in the road maintenance budget.E. Control of vehicle emissions. The component will support the development of a vehicle emissions control program.F. Institutional development and technical assistance. This component provides assistance to strengthen existing institutions and the enhance skills in the Shijiazhuang Urban Transport Project Office, Traffic Management Unit of the Traffic Police, the Public Transport Operating Company, the Road Maintenance Bureau, and the Environmental Protection Bureau. 5. Financing Total ( US$m) Total Project Cost 286.4 6. Implementation Shijiazhuang Municipal Government will sign the Project Agreement with the World Bank. It will also be responsible for project implementation, the provision of counterpart funds, loan repayments, and ensuring compliance with World Bank policies. The estimated completion date of the project is June 30, 2005, with a project closing date of December 31, 2006. The municipality, in consultation with the province of Hebei, has put in place the institutional framework, described below to prepare and implement the project.Leading Groups. Two Project Leading Groups, one at the provincial level (for general coordination) and the other at the municipal level, have been established to provide overall guidance during both project preparation and implementation. Project Office. A municipal Project Office (SUTPO) has been established to manage both project preparation and implementation activities. Within the SUTPO, there is a permanent project team comprising technical staff from all the government agencies which have an interest in the project. This group is being strengthened in readiness for project preparation.Project implementation agencies. Responsibility for implementation of the individual components will be as follows:Component Responsible AgencyRoad Infrastructure Shijiazhuang Urban Transport Project OfficeTraffic Management Traffic PolicePublic Transport Public Utilities CommissionEmission ControlEnvironmental BureauRoad MaintenanceRoad Maintenance AgencyInstitutional Development/and Technical Assistance Shijiazhuang Urban Transport Project OfficeEach of these agencies has been actively involved during project preparation.Project Implementation Plan. The SUTPO and all the proposed implementing agencies worked together to prepare the Project Implementation Plan (PIP). The PIP will guide the implementation of the project and will be updated from time to time.Progress Reporting and Planning. SUTPO will be responsible for preparing quarterly and annual progress reports and annual implementation programs. Finance and On-lending arrangements. The Ministry of Finance (MOF) will on-lend the World Bank funds to the Hebei Province (HP) (through the Finance Bureau), who will in turn on-lend them to Shijiazhuang Municipal Government (SMG). World Bank Supervision arrangements. The project has been prepared by a team based in both Beijing and Washington, and led from Beijing. The same - 4 -  team will supervise the project including the specialist supervision of the financial management systems, procurement activities, disbursement, and the implementation of resettlement and environmental plans. A Mid-term Review of the project is scheduled for the second half of 2003. 7. Sustainability Overall, the sustainability of the overall benefits of the project will depend upon many factors, including:Creation and retention of new institutional structures to coordinate the development and management of urban transport facilities and services in Shijiazhuang.Enforcement and maintenance of traffic management measures is crucial if the city is to obtain full benefit from these investments.Improved management of bus company operations. The municipality is very keen to raise the modal share of the buses. It also recognizes the need to revise the regulatory and financial framework for public transport. However, the essential first step is that the bus company takes a more commercial approach to the operation of services.Continued focus on importance of road maintenance. Budgets for road maintenance need to be set at levels which are adequate funding to maintain existing assets. Continued attention to environmental issues. There must be continued attention to the implementation of the proposed MVECS and enforcement of the relevant regulations.Continued focus on the professional development of local technical staff through a combination of formal training, study tours and other forms of technical assistance by international and domestic experts. 8. Lessons learned from past operations in the country/sector Useful lessons can be drawn from the experience of the four ongoing Bank urban transport projects in China--Shanghai (two projects), Guangzhou and Liaoning. These can be summarized as follows: There is a need for more than roads. When the Bank begins to work with a new client, there is always limited recognition of the fact that the solution to a city's urban transport problems will be multi-faceted. This mis-conception has had to be addressed during project preparation.Need for participation by all interested agencies. One of the keys to developing a sustainable project, is ensuring the active participation and ownership from all institutions who have some responsibility for parts of the urban transport system. This has been the case in ShijiazhuangMust weld together Chinese and international experience. Both the Liaoning Urban Transport Project and Shanghai Projects underscored the importance of integrating both international and domestic expertise during project preparation, a practice followed for Shijiazhuang. Strong support is required to develop the designs for the traffic management components. Typically, the Traffic Police Detachments have limited knowledge of advanced traffic engineering techniques and their skills must be strengthened through the project. Need for solid project implementation arrangements. As with most Bank financed projects, the adoption of appropriate project management arrangements is essential for sound implementation. Urban transport projects in China present a series of particular challenges, including the need to assure close inter-agency cooperation during implementation. 9. Program of Targeted Intervention (PTI) N 10. Environment Aspects (including any public consultation) Issues : The project complies with the requirements of O.P. 4.01. The project is classified "A" since it involves involuntary - 5-  resettlement, major road construction (partly on new alignments) and increased air pollution and noise, particularly adjacent to the new road structures.A comprehensive environmental assessment has been carried out by the Shijiazhuang Environmental Protection Research Institute and China No. 4 Nuclear Industrial Research & Design Institute in accordance with the policies and procedures of China and the Bank. In the process of EA preparation, public consultation and information disclosure have been conducted in two stages with assistance from Bank staff and international consultants. The EA Reports were reviewed and commented on by the Bank. The revised reports meet the Bank's requirements. The most important potential impacts relate to the proposed new road construction and two new bus depots, during both construction and operation. However, the project does also include a component for the development of a vehicle emissions control program. Also, on the positive side, the more efficient transport network will lead to savings in personal travel time, vehicle operating costs, reduction in traffic accidents and motor vehicle emissions. Environmental institutions will be strengthened through environmental monitoring equipment upgrading, staff training, the preparation of the vehicle emission control strategy study and setting up the vehicle emission inspection and maintenance (I/M) system. 11. Contact Point: Task Manager Richard G. Scurfield The World Bank 1818 H Street, NW Washington D.C. 20433 Telephone: 86-10-65543361 Ext. 3100 (Beijing, China) Fax: 86-10-65541686 12. For information on other project related documents contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Web: http:// www.worldbank.org/infoshop Note: This is information on an evolving project. Certain components may not be necessarily included in the final project. - 6 -