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China,People'sRep.of
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LOAN: PRC 35354-01
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Lanzhou-Chongqing Railway Development Project (formerly Lanyu Railway)
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Location
Gansu, Sichuan, Shaanxi, Chongqing
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Sector
Transport & Communications /Railways
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Initial Listing
13 June 2006
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Most Recent Update
17 December 2008
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Executing Agency(ies)
Ministry of Railways
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- Missions
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| TA Fact-Finding |
Loan Fact-Finding |
Pre-Appraisal |
Appraisal |
| 27 Jun-5 Jul 2006 |
8-12 Oct 2007 |
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25 Feb-5 Mar 2008 |
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Loan Approval Date
18 November 2008
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Estimated Completion Date
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- Cost and Financing Plan (in US$ million)
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| Source |
Foreign Cost |
Local Cost |
Total |
| Bank |
300.00 |
0.00 |
300.00 |
| Cofinancing |
4,004.40 |
0.00 |
4,004.40 |
| Borrower |
4,304.50 |
0.00 |
4,304.50 |
| Beneficiaries |
0.00 |
0.00 |
0.00 |
| Others |
0.00 |
0.00 |
0.00 |
| Project/Program Cost |
8,608.90 |
0.00 |
8,608.90 |
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OCR |
ADF |
Total |
| Loan Amount |
300.00 |
0.00 |
300.00 |
- Description
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The project is (i) the first north-south railway line linking Chongqing, Gansu, Shaanxi, and Sichuan provinces; and (ii) the shortest north-south corridor linking Lanzhou, Baoji, Yinchuan, Xining, Xinjiang and other major cities in the north to Chongqing, Chengdu, Guiyang, Kunming and other ports and cities in the south. The proposed alignment for the LCR is shorter by 295 km and 600 km than the two existing routes between Lanzhou and Chongqing. Traversing Gansu, Shaanxi and Sichuan Provinces, and Chongqing Municipality, the proposed railway line will connect with the Baotu-Yinchuan- Lanzhou in the northeast, Urumqi-Lanzhou in the northwest on its way to Kazakhstan and Europe, Shanghai-Wuhan-Ankang in the east connecting at Guangyuan and Shanghai-Wuhan-Yichang-Dazhou-Chengdu in the center, Yichang-Lichuan-Chongqing and to Chongqing to Guiyang, Chongqing-Kunming in the south on its way to Viet Nam, Laos and South East Asia, and Xi'an-Chongqing main lines in the north, Chongqing-Chengdu in the west, and Chongqing-Kunming in the south. The project will also help to promote regional cooperation, as this is the shortest north-south corridor linking the Greater Mekong Subregion to Central Asia Regional Economic Cooperation through the PRC.
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- Thematic Classification
- Economic Growth
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- Target Classification
- General Intervention
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- Rationale
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The project reflects ADB's railway sector operational strategy for the PRC, which includes reducing railway network constraints and promoting sustainable economic growth in poor areas not served by railways. The project is in line with the Government's western development strategy to provide less developed regions with better infrastructure to facilitate economic growth, thereby increasing the opportunity for people to improve their living standards.
The interior regions of the PRC have not benefited as much from economic growth and reforms as the east coast; in fact, the gap between economic and social development has increased. Transport constraints and high logistics costs are two factors contributing to regional economic disparities, and two of the constraints preventing the western region from capitalizing on its comparative advantages.
- Project Impact
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The impact of the Project will be an improved transport system in the region that supports socioeconomic development and the western development strategy.
- Project Outcome
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The outcome of the Project will be an efficient, affordable, environment-friendly, and energy-efficient railway transportation in unserved, less-developed areas.
- Project Outputs
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The Project comprises (i) the construction of 820 km of double-track electrified standard gauge class I railway from Lanzhou to Chongqing; (ii) the construction of 31 new railway stations complete with facilities; (iii) the provision of modern technology and equipment, among other safety initiatives; (iv) the introduction of a signaling, communication, and management information system; (v) the provision of training in the use and maintenance of the modern equipment; (vi) land acquisition and resettlement; (vii) environmental protection and mitigation of adverse environmental effects; (viii) consulting services for construction supervision, monitoring and evaluation, and marketing and business development; and (ix) the strengthening of institutional capabilities. Civil works, equipment, consultants, and MOR and project company staff are the key inputs needed for project implementation.
- Policy Dialogue
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- Environment Category:
A
- Environment Impact and Mitigation
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- Social Aspects and Remedies
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The Project will generate job opportunities (skilled and unskilled) for the poor, ethnic minorities, women, and other vulnerable groups, which will help develop their job skills. Sufficient areas for income-generating activities will be designated in and around the station areas. Construction and operation-related job opportunities and those generated from the Project will provide potential new sources of income for local residents. An increase in female participation in the labor and tourism market has the potential to increase women's net income and savings, improve overall family welfare, and improve the status of women. Through several ongoing programs along the alignment, the All-China Women's Federation will specifically address the needs of women and children. The federation will operate even more actively in the project area so that women are able to take full advantage of additional work and income opportunities facilitated by the Project to build businesses that help sustain their families.
Women and other vulnerable groups will benefit from the Project, and have equal access to project-generated employment and wages. The railway will generate demand for local labor and increase worker productivity and wages. Under PRC law, women are given equal rights in employment. Expansion of secondary and tertiary industries will help generate additional employment opportunities for both men and women. Afforestation activities will provide additional employment opportunities for women relatively close to their homes.
During the construction period, the county governments along the alignment will raise public awareness among workers and communities on HIV/AIDS and STIs. MOR has experience in ensuring that contractors implement awareness and prevention programs during railway construction. Medical clinics were established in the area of construction camps, and HIV/AIDS awareness campaigns and preventive measures for workers and communities were organized during railway construction. These activities will continue during the construction and operation of the Project. Combined with increased awareness efforts by local government and the Department of Health, the potential risks of STI/HIV/AIDS transmission will be adequately managed.
An SDAP has been prepared in consultation with local governments to enhance the project benefits; ensure the adverse impacts are avoided or mitigated; and increase economic development benefits to the poor, women, ethnic minorities, and the vulnerable in an equitable and sustainable manner (Appendix 18). The SDAP will (i) enhance job opportunities for local people; (ii) provide training and vocational programs for the poor, women, ethnic minorities, and the vulnerable; (iii) support HIV/AIDS awareness and prevention programs; (iv) support income recovery programs for people affected by resettlement; (v) provide awareness and prevention programs for safety during construction and operation; and (vi) promote local economic development. This will be implemented with participation from relevant government agencies at the local level-including poverty alleviation offices; All-China Women's Federation; and health, civil affairs, labor, and ethnic affairs bureaus. Leading groups have been formed to continue the process of consultation and coordination among various agencies during implementation.
- Benefits and Beneficiaries
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The project will (i) provide the shortest land route between Lanzhou, Longnan, Guangyuan, and Chongqing-key economic centers of Gansu and Sichuan provinces, and Chongqing municipality-enabling railway users to benefit from lower transport costs and shorter travel distances and times; (ii) increase the corridor's capacity, benefiting consumers and producers of goods and services through the provision of timely and efficient transport services and lower logistics costs; (iii) generate direct and indirect employment in the project-influenced area, and create jobs and income-earning opportunities (the construction and operation of the railway will employ much local unskilled labor); (iv) provide an area that lacked adequate cost-efficient transportation services with access to broader markets; and (v) stimulate local development through small business opportunities, tourism, railway station area development, and other infrastructure elements to maximize benefits to local areas.
The major project beneficiaries will be (i) the Government, which will benefit from improved safety and reduced energy bill; (ii) passengers, including tourists, who will benefit from affordable, faster, and safer trips; (iii) freight users who will switch from the existing road and benefit from more affordable, faster, and safer trips; (iv) local residents who will benefit from the lower prices of commodities and services transported by the project railway; (v) local labor involved in construction work and supply of materials during implementation, and loading/unloading during the railway's operation; (vi) local farmers who will be able to sell their products at market prices without paying a high margin to a transport intermediary; (vii) manufacturers and traders who can increase production capacity or establish businesses, and will transport their goods and services by the railway; and (viii) local governments, which will benefit from the increased opportunity for local area development and increased revenues.
The project will benefit about 16.8 million people living in the project area. The poverty and social assessment looked at the 28 counties/districts, of which 15 counties are designated national poverty counties and 2,897 are designated poverty villages. About 72% of the beneficiaries live in rural areas, and 17% are poor with an annual net income per capita of less than CNY1,000. The links between poverty, difficult topography, and poor transport systems are apparent in the project area for the proposed LCR. Poverty is often caused by geographic remoteness and isolation, limited transport access, high transport costs, and poor access to market information, as well as limited access to health, education, and other social services.
The project will facilitate the creation of additional employment and income-generating opportunities. About 468,000 person-years of work will be created during construction. This will provide direct employment opportunities to over 234,000 poor people, including women and ethnic minorities. Railway station area development will increase incomes in local communities and help generate local revenues. The project will facilitate the development of small businesses, local industry, and tourism, which will help generate additional opportunities in the future for local people. Consultations with local people in the project area indicated their strong support for the project.
The increased tax revenues generated by the economic development induced by the project will help finance improved social service facilities and basic infrastructure.
- Public Consultation
- Arranged by
- Date for Consultation :
- Groups Consulted :
- Beneficiary Participation in Formulation
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Extensive consultations-including surveys-involved about 14,500 people, such as local villagers, tourists, businesspersons, transport users, and local governments. This helped to (i) understand public opinion about the proposed railway; (ii) conduct the environmental, economic, and social assessments; (iii) plan resettlement; and (iv) identify the role of various stakeholders. Leading groups have been formed in the prefectures with participation from relevant government agencies, including poverty reduction offices; All-China Women's Federation; and health, civil affairs, and ethnic affairs bureaus. The local governments assured that the consultation process will be continued to finalize the design and implement social and environmental measures.
- Beneficiary Participation in Implementation
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The consultation process will be continued to finalize the design and formulate appropriate land compensation, relocation, and rehabilitation measures during project implementation. The railway construction offices will play a significant role in this process.
- Consulting Services
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The ADB loan will be used to finance 10 person-months of international consulting services to strengthen the institutional, marketing, and business development functions of the project company. The international consultants will be recruited through quality- and cost-based selection (at an 80:20 ratio) based on simplified technical proposals, according to ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). The provisions of ADB's Anticorruption Policy will be included in all invitation documents and contracts for international consultants.
- Procurement
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All ADB-financed procurement will follow ADB's Procurement Guidelines (2007, as amended from time to time). ADB will finance the procurement of materials and equipment as described in the procurement plan. Contracts valued at $1 million or more will be procured through international competitive bidding. MOR will select tendering companies on a competitive basis to handle international bidding. The relevant sections of ADB's Anticorruption Policy (1998, as amended to date) will be included in all documents and contracts during the bidding for, and implementation of, the Project.
- Contacts
- Bank
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Manmohan Parkash
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Principal Transport Specialist
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EATC
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Tel. No.:
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(632) 632-6364
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E-mail:
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mparkash@adb.org
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- Executing Agency
- Ministry of Railways
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Contact Person
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Mr. Liu Junfu, Deputy Director General
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Tel. No.
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(86 10) 5184 8416/5184 1895
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Fax. No.
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(86 10) 5184 1845
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