LOAN: PRC 30389-01 | Changchun-Harbin Expressway: Hashuang Expressway

China,People'sRep.of

LOAN: PRC 30389-01

Changchun-Harbin Expressway: Hashuang Expressway

•	Missions
•	Loan Approval Date
•	Estimated Completion Date
•	Cost and Financing Plan
•	Description
•	Development Objectives
•	Thematic Classification
•	Poverty Classification
•	Rationale
•	Objectives and Scope
•	Policy Dialogue
•	Environment Category
•	Env't Impact and Mitigation
•	Social Aspects and Remedies
•	Benefits and Beneficiaries
•	Public Consultation
•	Beneficiary Participation in Formulation
•	Beneficiary Participation in Implementation
•	Consulting Services
•	Procurement
•	Contacts
•	Remarks

Location
Jilin Province and Heilongjiang Province, PRC

Sector
Transport & Communications /Roads & Highways

Initial Listing
1 February 1997

Most Recent Update
18 February 1999

Executing Agency(ies)

Heilongjiang Hashuang Expressway Corporation

Missions

Loan Approval Date

27 November 1998

Estimated Completion Date

September 2002

Cost and Financing Plan (in US$ million)

Source	Foreign Cost	Local Cost	Total
Bank	170.00	0.00	170.00
Cofinancing	0.00	0.00	0.00
Borrower	0.00	72.30	72.30
Beneficiaries	21.20	155.20	176.40
Others	18.50	286.10	304.60
Project/Program Cost	209.70	513.60	723.30

OCR ADF Total

Loan Amount 170.00 0.00 170.00

Description

The Project aims to promote economic and social development in the northeast of the PRC by providing the missing link in the northeast expressway corridor. The Project comprises 262 kilometers (km) of four-lane access controlled expressway linking Harbin, the provincial capital of Heilongjiang Province, and Changchun, the provincial capital of Jilin Province. The Project will connect two Bank-financed expressways, the Changchun-Siping expressway in Jilin Province and the Heilongjiang expressway in Heilongjiang Province, both recently opened to traffic. The Project will be implemented as two separate but coordinated components. The Heilongjiang component comprises 101 km of expressway including a Harbin ring road section. The Jilin component comprises 161 km of expressway including two ring road sections at Changchun.

Strategic Development Objectives

Primary: Economic Growth

Secondary

Rationale

Increasing demand associated with the PRC's rapid economic growth has created bottlenecks that are evident in all transport modes. The Project will remove a major bottleneck on the Northeast road transport corridor. The proposed Project will promote economic growth by reducing the cost of transport, enhance the safety of road transport, and support the development of new corporate structures for expressway management in both provinces. The Project is consistent with the Government's current economic policy of stimulating the domestic market through infrastucture investment, to offset the declining production of state-owned enterprises (SOEs). The Project will provide quicker and cheaper transport to major seaports from these landlocked provinces, sustain international trade, encourage foreign direct investment especially in agroprocessing activities, and sustain employment levels in two provinces with high levels of SOE production. The Project will complement several completed and ongoing Bank-financed road sector investments in the Northeastern road transport corridor.

Objectives and Scope

The Changchun-Harbin Expressway Project will promote economic and social development in the northeastern part of the country by completing a key section of transport infrastructure. The Project will (i) improve access from Heilongjiang Province and parts of Jilin Province to the more developed provinces of the east and south, (ii) provide additional transport capacity and reduce transport costs in the Project area to enhance business and trade opportunities and attract investment, (iii) alleviate congestion and reduce accidents on existing roads, (iv) improve access for trade between the PRC and the Russian Federation and Mongolia, (v) enhance road safety standards on the Project and related facilities, and (vi) support the corporatization of expressway construction and operations. The Hashuang Expressway component comprises (i) construction of about 101 km of four-lane access controlled toll expressway between Harbin and the Lalin River, including a Harbin ring road section, interchanges, service areas, two large bridges, and link roads; (ii) procurement of equipment for toll collection, traffic management and safety, communications, highway maintenance, vehicle-axle load testing, and office administration; and (iii) consulting services for engineering design, construction supervision, road safety, and human resource development and training.

Policy Dialogue

Policy dialogue focused on four principal items. First, project components are directed at improved road safety in the road corridor and continued cooperation in enforcement. Second, contract design was oriented to improving contractor capabilities. Third, assistance will be provided for business planning and commercial operations of the corporate executing agencies. Fourth, assistance has been provided to facilitate securitization of expressway revenues as a means of tapping nongovernment investment funds.

Environment Category: A

Environment Impact and Mitigation

The Project will have no adverse environmental impact on the surrounding area and people. Mitigation measures have been included in the Project design for noise and air pollution, especially during Project implementation.

Social Aspects and Remedies

Resettlement will be undertaken on the basis of resettlement plans which meet the requirements of the Bank and will ensure that those affected will be no worse off than without the Project. There will be some groups, chiefly entrepreneurs operating restaurants and guesthouses along the existing road, who may suffer initially because of the new expressway. Local governments will take steps to allow their relocation closer to the new road, and will also take steps to facilitate the movement of large vehicles through urban areas between agroprocessing units and the new road. The Project should stimulate foreign direct investment, especially in agroprocessing activities, and secure employment in the Project area.

Benefits and Beneficiaries

The quantifiable benefits consist of savings in time and vehicle operating costs for normal and generated traffic in the road corridor, savings in rail costs from diverted traffic, and accident cost savings. The economic internal rate of return for the Project as a whole is estimated at 18.9 percent. The financial internal rate of return for the Project is estimated at 7.1 percent for Heilongjiang Hashuang Expressway Corporation (HHEC) and 7.6 percent for Jilin Provincial Expressway Corporation (JPEC). Different categories of road user will benefit from the Project. Businesses in the Project area will have cheaper access to seaports and domestic markets. Producers in the other parts of the country will have better access to markets in the Northeast areas. Agroprocessing units in Heilongjiang and Jilin provinces will benefit from cheaper transport and improved logistics. Other producers, especially household agricultural producers in the Project area, will have better access to agricultural inputs, transshipment points, and markets. People living in the Project area will have better access to passenger services. The Project will also help reduce road accidents, traffic noise, and vehicle emissions.

Public Consultation

Arranged by Borrower, Bank and TA Consultants

Date for Consultation : (i) Design Teams - June 1997 (ii) Bank Mission - May 1998 (iii) Resettlement Agencies - September 1998

Groups Consulted : (i) township and village leaders plus villages (ii) those to be relocated, households, township and village leading groups (iii) resettlement agencies

Beneficiary Participation in Formulation

Transport operators in particular were consulted during Project formulation on the likely effects on transport services. The major transport users and employers were consulted relating to provision of link roads to provide access to the Project facilities. Those to be relocated were consulted on compensation levels and replacement costs.

Beneficiary Participation in Implementation

Local authorities and the executing agencies wil ensure participation in relation to resettlement and also in relation to some of the greening works to be undertaken towards the end of the Project.

Consulting Services

For the Hashuang Expressway component, about 4200 person-months of domestic consultant services will be required for construction supervision and training and about 8 person-months of international consulting services for advice on road safety, pavement design and construction, and to assist in drawing up a human resource development and training plan for the Heilongjiang-Hashuang Expressway Corporation staff.

Procurement

Major civil works contracts and goods and services financed under the loans will be procured through international competitive bidding in accordance with the Bank's Guidelines for Procurement. Most equipment also will be procured through international competitive bidding, and through international shopping in some cases.

Contacts

Bank

Stephen R. Curry
Advisor (Strategy and Programs)
SEOD
Tel. No.:
E-mail:

Executing Agency
Heilongjiang Hashuang Expressway Corporation

Contact Person : Mr. Wang Shouheng, General Manager
Tel. No. : (86 451) 451-5678811, 451-5678822, 451-5
Fax. No. : (86 451) 451-5678833
E-mail :

Contact Person :
Tel. No. :
Fax. No. :
E-mail :

Remarks

Projects