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    Roads and Railways Sector in the People’s Republic of China - Case Studies

    With ADB's help, roads and railways in the PRC underwent a remarkable transformation during 1997-2005 in terms of network expansion and upgrading, and through modernization and reform of policies and institutions. An important part of the ADB approach during this time was the constancy of its assistance and advice. The evaluation study rated ADB contributions to development results as significant to moderate with value added in the early stages being very significant. However, this declined as national and provincial governments built such features in their own projects. Going forward in roads and railways in the PRC, ADB must identify areas that offer scope for value addition, and adjust the types of activities it supports, the way it provides assistance, and the needed ADB staff skills.

    Over the study period, the leading mechanism for poverty reduction in the PRC was through creation of better paid jobs in poor areas and areas to which the poor could migrate. ADB investments in the national trunk highway system and railway network in the PRC have contributed to sustainable economic growth, providing an important "trickle down" effect to poverty reduction. ADB-financed expressways had been a highly cost-effective way to reduce poverty, even if it contains no explicit poverty reduction component, acting as catalysts for economic transformation and social development. Likewise, local roads attached to these projects generate high traffic growth and major development effects, albeit difficulties in attribution persist.