Meeting to Discuss Optimizing Benefit of Expressway and Local Road Investments in the PRC

BEIJING, PEOPLE'S REPUBLIC OF CHINA (13 July 2005) - A conference opens tomorrow in Beijing to discuss the People's Republic of China's (PRC's) road programs and the implementation of a technical assistance (TA) grant to help the country improve the planning, integration, and operation of its road network projects.

The TA, from the Poverty Reduction Cooperation Fund, financed by the Government of the United Kingdom, will help optimize future road investments in the PRC and maximize their benefits for the poor by improving the linkage between local roads and the National Trunk Highway System.

Economic growth in the PRC has resulted in increasing traffic volume, with the motor vehicle fleet growing at 15-30% per annum and the privately owned fleet of motor vehicles increasing more than 30 times in 1985-2004. This is creating a huge demand for more road space.

With the PRC's rapid economic growth seen as continuing, low vehicle ownership rates, increased automobile manufacturing capacity, lower car prices as tariff barriers fell after World Trade Organization accession, and increasing access to loans to finance automobile purchases, the vehicle fleet is expected to continue growing in the coming years.

To remove major transport bottlenecks, Government investments on roads are expected to reach about CNY1,800 billion during the 10th Five Year Plan (FYP), 2001-2005, almost double the amount spent in the 9th FYP. The road network grew from 1.16 million km in 1995 to about 1.9 million km in 2004. The second stage of the road development program will increase the network to more than 3 million km. by 2020, with expressways increasing to over 80,000 km.

"In view of the tremendous growth expected and current requirements, the TA will help the Government prepare a road network strategy that promotes the integration of expressways and local roads to meet communities' needs and support economic growth," says Kim Jraiw, an ADB Senior Transport Specialist and the mission leader for the TA.

"The TA will provide road agencies with the cross-disciplinary skills and tools to prioritize road investment, and incorporate poverty- and stakeholder-related issues in various stages of road project planning, implementation, and operation."

The expected outputs of the TA include:

• An integrated and sustainable road network development strategy, and priorities for the Government Eleventh Five-Year Plan (11FYP, 2006-2010)
• A mechanism recommended to the Government to tackle institutional obstacles in funding local road investments
• Improving the Government's Feasibility Study methodology and guidelines to facilitate assessment of road network projects
• A computerized information system to provide uniform social, economic, engineering, transport, and area-specific data to fill the current gap
• An integrated area wide road network computer model to help prioritize road investments
• A road construction and monitoring model to facilitate implementation
• A Transport Planning Unit created to provide ongoing expertise on road investment programs, and monitoring after the TA.

"ADB places high priority on infrastructure development and meeting its member country needs," says Nigel Rayner, Director of Transport and Communications at ADB's East and Central Asia Department. "The TA has been designed to optimize prioritization of road investment, improving feasibility study methodologies, and to provide local capacity for continuous improvement and monitoring after the TA."

He said ADB is keen to work closely with its member countries to develop a sustainable transport system, which is safe, efficient and environmentally friendly.

"Sustainable transport is about integrating engineering, economic, social and environmental considerations into decisions effecting transport activities," says Mr. Rayner.

"In the region, sustainable transport system is required and ADB has a key role to play. Adopting an area-wide approach to road network planning and investment can significantly help eliminate poverty and optimize transport system efficiency."

Decision makers, national experts, senior government officials, consultants and ADB staff are attending the two-day conference. It will be addressed by the Director General of Comprehensive Planning Department of the Ministry of Communications, the executing agency of the TA, and by representatives of the State Council, National Development and Reform Commission, Ministry of Finance, PRC's banks, and road construction community. Executing agencies of other ADB-financed projects will also attend.

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