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China,People'sRep.of
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LOAN: PRC 37487-01
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Zhengzhou-Xi'an Railway Project
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Location
Western Henan and Southeastern Shaanxi Province
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Sector
Transport & Communications /Railways
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Initial Listing
13 January 2004
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Most Recent Update
29 November 2006
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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 |
| 24 Feb-1 Mar 2004 |
15-25 Mar 2005 |
TBD |
23-31 May 2005 |
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Loan Approval Date
22 September 2005
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Estimated Completion Date
December 2012
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- Cost and Financing Plan (in US$ million)
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| Source |
Foreign Cost |
Local Cost |
Total |
| Bank |
400.00 |
0.00 |
400.00 |
| Cofinancing |
0.00 |
1,667.27 |
1,667.27 |
| Borrower |
964.61 |
1,100.05 |
2,064.66 |
| Beneficiaries |
0.00 |
0.00 |
0.00 |
| Others |
0.00 |
0.00 |
0.00 |
| Project/Program Cost |
1,364.61 |
2,767.32 |
4,131.93 |
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OCR |
ADF |
Total |
| Loan Amount |
400.00 |
0.00 |
400.00 |
- Description
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The Project is located in the western part of Henan and southeastern part of Shaanxi province, a relatively poor area. The Project is designed to promote sustainable economic growth by constructing 459 km of railway line from Zhengzhou in Henan to Xi'an in Shaanxi. The Project will develop an efficient, safe, and environmentally sustainable railway transport system in the region; and facilitate creation of additional employment and income-generating opportunities, thus benefiting the poor residents.
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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 meets the railway sector operational strategy of ADB for the PRC to reduce railway network constraints and to promote sustainable economic growth in poor areas not served by railways. The Project is also 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 in the PRC have not benefited as much from economic growth and reforms as the east coast. The gap in economic and social development has increased. Transport constraints and high logistics costs are two of the factors contributing to regional economic disparities and are two of the constraints that prevent the western region from capitalizing on its comparative advantages. The proposed Project is one of the eight passenger dedicated corridors to be developed by 2020. The proposed alignment for the ZXR is 50 km shorter than the existing Longhai railway line. Traversing Henan and Shaanxi Provinces, the proposed railway line with connect with Beijing-Guangzhou, Shanghai-Xuzhou and Beijing-Wuhan main lines on the east and Xi'an-Baoji-Lanzhou, Xi'an-Baoji-Chengdu, Xi'an-Ankang, and Xi'an-Yan'an main lines on the west. This is the main east-west corridor linking Beijing, Shanghai, Lianyunang and other major cities and ports in the east, Xi'an, Baoji, Lanzhou, Urumqi, Chengdu, Chongqing, in the west. The Project will also help in promoting the regional cooperation as this is the main east-west corridor linking PRC to Central Asia and Europe. The Project, a joint-venture railway between the Ministry of Railways (MOR) and Henan and Shaanxi provincial governments (HPG and SPG), will have substantial managerial and financial autonomy. The Project will contribute to changing the railway enterprises from a cost center in a planned economy to a profit center in an increasingly competitive transport market. The components are formulated in line with MOR's 2004 railway development plan.
- Objectives and Scope
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The Project will remove a transport constraint to sustainable economic growth. Providing economic railway transporation in the unserved, less-developed, and poor areas will help create conditions necessary for developing local resources and generating employment and income-enhancing opportunities to raise living standards in the project area. The project comprises the following components: (i) construction of 459 km double-track electrified standard gauge Class I passenger dedicated railway between Zhengzhou and Xi'an, (ii) construction of 9 new railway stations complete with facilities, (iii) safety initiatives, including provision of modern technology and equipment for enhancing safety, (iv) e-governance and operating disptach information system, (v) provision of training on the use and maintenance of modern equipment, (vi) land acqusition 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) strengthening of institutional capabilities. The key inputs needed for project implementation include civil works, equipment, consultants, and staff of MOR and the Project Company.
- Policy Dialogue
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- Environment Category:
A
- Environment Impact and Mitigation
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The Environmental Impact and Mitigation Measures are detailed in the Summary Environmental Impact Assessment (SEIA) which has been circulated to the Board on 29 April 2005 and is available in ADB's website.
- Social Aspects and Remedies
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- Benefits and Beneficiaries
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The Project will provide the shortest land route between Zhengzhou and Xi'an, key centers of Henan and Shaanxi provinces, enabling railway users to (i) 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 tourism, railway station area development, and other infrastructure elements to maximize the railway's benefits to the local areas. The increased tax revenues generated by the economic development induced by the Project will help finance improved social service facilities and basic infrastructure. The major project beneficiaries will be (i) passengers, including tourists, who will benefit from affordable, faster, and safer trips, (ii) freight users who will switch from the existing road and benefit from more affordable, faster and safer trips; (iii) the local population who will benefit from the lower prices of commodities and services transported by the project railway; (iv) local labor involved in construction work and the supply of materials during implementation and in loading/unloading during the operation of the railway; (v) local farmers who will be able to sell their products at market prices without paying a high margin to a transport intermediary; (vi) local manufacturers and traders who can increase production capacity or establish businesses and will transport their goods and services by the railway; and (vii) local governments who will benefit from the increased opportunity for local area development and increased revenues. The Project will benefit about 9.3 million people living in the project area. The poverty and social assessment looked at the 19 counties of which 17 are rural and 2 urban. Six counties are designated national or provincial poverty counties. The Project will facilitate the creation of additional employment and income-generating opportunities. About 353,000 person-years of work will be created during construction. This will provide direct employment opportunities to over 70,000 poor people, including women and ethnic minorities. Railway station area development will increase incomes in local communities and help generate locala revenues. The Project will facilitate the development of local industry and tourism, which will help generate additional opportunities in the future for local people.
- Public Consultation
- Arranged by
- Date for Consultation :
- Groups Consulted :
- Beneficiary Participation in Formulation
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- Beneficiary Participation in Implementation
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- Consulting Services
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The ADB loan will finance 20 person-months of international consulting services for (i) strengthening institutional, marketing, and business development functions of the Project Company; and (ii) researching and strengthening the development, operation, and management of the passenger-dedicated railway systems in the PRC. The consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants. Suitable domestic consulting services for project design, construction supervision, and construction quality control, environmental supervision, procurement, and monitoring and evaluation of the safeguard aspects of the Project will be engaged and financed by MOR in accordance with government procedures acceptable to ADB.
- Procurement
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ADB-financed components will be procured by MOR in accordance with ADB's Guidelines for Procurement. Other items will be procured in accordance with government procedures acceptable to ADB.
- Contacts
- Bank
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Manmohan Parkash
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Senior Transport Specialist (Railways)
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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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