Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 24 Nov 2006
PDS Updated as of 21 Oct 2013

Project Name Yichang-Wanzhou Railway Project
Country China, People's Republic of
Project/Program Number 35339-013
Status Approved
Geographical Location Hubei Province and Chongqing Municipality
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector and/or Subsector Classification Transport and ICT
/ Rail Transport
Thematic Classification Economic growth
Gender Mainstreaming Categories Some gender benefits

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan2051Ordinary capital resources500,000
Counterpart 1,863,000
TOTAL US$ 2,363,000

Safeguard Categories

For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

Environment A
Involuntary Resettlement A
Indigenous Peoples B

Summary of Environmental and Social Issues

The summary environmental impact assessment (SEIA), including the resettlement plan, was circulated to the Board on 31 October 2003. The EIA concluded that the potential adverse environmental impacts can be successfully mitigated. The environmental management plan of the EIA has been incorporated in the detailed engineering designs and Project Performance Management System.

Environmental Aspects
The EIA for the Project was prepared by the Fourth Survey and Design Institute (FSDI). State Environmental Protection administration (SEPA) and the Hubei and Chongqing environmental protection bureaus approved the EIA on 31 October 2003. The summary EIA (SEIA), including the summary resettlement plan, was circulated to the Board on 17 June 2003. Major potential environmental impacts include (i) disturbance to breeding grounds of Chinese sturgeon and other sensitive species in the Yangtze due to bridge construction; (ii) wastewater discharge into the Yangtze, particularly at Yichang; (iii) possible clearing of old growth trees; (iv) management of excavated rock and soil wastes; and (v) impacts due to secondary tourism and industrial development. Environmental monitoring will be done by an external monitoring agency, which conducted similar work for previous railway projects. Institutional arrangements for environmental mitigation, monitoring, reporting, and oversight are summarized in the SEIA. An independent panel of experts will be established and funded by the TA to carry out periodic reviews of the implementation of specific mitigating measures identified in the EIA. The EIA concluded that the potential adverse environmental impacts can be successfully mitigated. The environmental management plan of the EIA will be incorporated into the detailed engineering design and PPMS to ensure implementation in accordance with ADB guidelines and the Government regulations and procedures. MOR will adopt the independent environmental supervision scheme.
Involuntary Resettlement
The Project will require the acquisition of 1,087 hectares (ha) for the railway rights-ofway and stations. An additional 200 ha will be used temporarily during construction. Of the permanently acquired land, 39% is agricultural, which affects the livelihoods of 7,420 people. About 450,000 square meters (m2) buildings will be removed, which affects 17,750 people. Since many people lose both land and housing, the total number of affected people is 20,140. Land acquisition and resettlement impacts were minimized by selecting the railway alignment to avoid, to the extent possible, areas with high population densities. FSDI has completed a survey to refine the alignment and further modifications were considered to reduce the number of affected people. Special investigations of the resettlement impacts for the three largest stations in Enshi Prefecture were carried out. MOR and the local governments will ensure that any people losing land, housing, other assets, or other means of production will be assisted in restoring their incomes and living standards. Either lost assets will be replaced or the owners will be compensated at replacement cost. Additional support will be given to the ethnic minorities, the poor, women, and other vulnerable groups (e.g., the elderly, children, and the disabled). Village rehabilitation plans have been formulated for the three largest stations based on inputs from local officials and affected people. Consultations will continue during detailed design phase and project implementation. A resettlement information booklet was distributed to affected villages in July 2003. In September 2003, the full RP in Chinese was distributed to each RCSO at the township level along the railway line. After MOR approves the preliminary design report, a detailed measurement survey of the alignment and station areas will start to determine the precise amount of land, housing, and assets affected.
Indigenous Peoples
Ethnic minorities live in certain parts of the project area. Enshi Prefecture is a Tujia and Miao Autonomous Prefecture. Five of eight counties along the alignment are minority counties, with the minority population ranging from 36% to 54% of the total county population. The largest ethnic minorities are the Tujia (92.4%), followed by the Miao (4.8%), and the Dong (1.3%). This region is the traditional homeland of Tujia. An ethnic minority analysis conducted during the PPTA concluded that the Tujia people have largely assimilated into the majority and the ethnic minorities enjoy the same economic status as the majority Han.40 Analysis of the impact on minorities found that the Project would not affect them adversely in a disproportionate manner. Therefore, the Project does not need a separate ethnic minority development plan. The adverse impacts from land acquisition have been addressed in the RP. Special measures have been identified to ensure that ethnic minority people are resettled with due consideration for their traditional values. The Project will have positive impacts on poverty reduction. Of the poor population, 39% will be raised above the poverty line by 2008. Poverty incidence in the project area is expected to decline from 38.4% to 15% after project completion. As economic development takes place, poverty will be substantially reduced in the project area between 2018 and 2020.

Stakeholder Communication, Participation and Consultation

During Project Design
Public consultations involved people living in the project area. Social assessment investigations began in 2001. Meetings with local people and a survey of 200 respondents for environmental issues were conducted in September 2001. FSDI held meetings with local officials and interviewed 774 randomly selected households of potentially affected people in March 2002. Under the project preparatory technical assistance (PPTA), the consultants carried out further consultations and surveys of 250 households and 33 villages along the alignment between June and September 2002. They found that the local people could benefit from low-cost, safe, and reliable transport services. From January to March 2003, further participatory investigations were undertaken to study the resettlement concerns of the most severely affected villages in the proposed station areas, particularly the concerns of vulnerable groups, such as the poor, households with female heads and ethnic minority groups.
During Project Implementation
Consultations have been carried out at various levels.

Description

The Project is a new 377-kilometer (km) railway linking Yichang (Hubei Province) and Wanzhou (Chongqing Municipality). As part of the national railway system, the Yichang-Wanzhou Railway (YWR) will shorten the rail travel time and distance between eastern and western PRC and will provide affordable transportation in a poor area. The Project traverses eight counties/districts, five of which are poor counties eligible to receive national poverty reduction funds. About 75% of the total length of the project railway is in the five poor counties. The project area is 88% rural and poverty is widespread. Poverty incidence is 38.4% compared with 8.5% in the PRC as a whole. The per capita net income of the rural population of the project area is CNY1,384, which is 59% of the national average.

Project Rationale and Linkage to Country/Regional Strategy

The Project meets the railway sector operational strategy of the Asian Development Bank (ADB) for the PRC to reduce network bottlenecks and to promote pro-poor 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 western regions with infrastructure that will give the poor greater access to economic growth. The poor interior regions in the PRC did not benefit as much from economic growth and reforms as did the east coast, and the gap in economic and social development has increased. Transport constraints and high logistics costs create regional economic disparities and prevent the western region from capitalizing on its comparative advantages, and abundant natural and human resources. The YWR will have a positive impact on the entire rail network. The Project will reduce transport constraints and will promote equitable growth in two ways: (i) a less expensive, reliable, and safe transport between the economic centers in the east coastal region and the heart of the western region through the isolated project area will promote economic development along the corridor; and (ii) a shorter east-west route and increased transportation capacity in central PRC will facilitate nationwide exchange of goods and people. The PRC railway system needs both reforms and network expansion. The Project will advance ADB's involvement in railway sector reform by strengthening MOR s internal thrust to change the railway enterprises from a cost center in a planned economy to a profit center in the fast-moving transport market. The components are formulated in line with MOR s 2003 draft railway development plan. The Project will help reduce endemic poverty in the project area, by inducing associated infrastructure development and economic activities and providing direct employment during construction and operation of the project railway. The Project was listed in the People's Republic of China: Country Strategy and Program (2004-2006), which was circulated to the Board on 14 October 2003.

Development Impact

Improved transport system in the region that promotes pro-poor economic growth.

Project Outcome

Description of Outcome
A railway system that reduces transport bottlenecks on the national network, increases transportation capacity of the corridor, and lowers transport costs.
Progress Towards Outcome
The project has achieved its main objectives of removing transport barriers, reducing transport and logistics costs, and promoting pro-poor economic and social development in the poverty-stricken regions. The construction and operation of YWR has significantly contributed to regional socioeconomic development.

Outputs and Implementation Progress

Description of Project Outputs
Railway Operational. Institutional capacity upgraded. Environmental protection facilities developed.
Status of Implementation Progress (Outputs, Activities, and Issues)
Established. Equipment installed for telecommunication, signal, electrification, and traffic control system were found in good condition. A centralized train control system is established and operating command is provided in Wuhan Railway Administration and Chengdu Railway Administration. The whole line of 377 km was completed by 30 November 2010. Provisional acceptance was issued by MOR on 25 November 2010. Trial operation started on 22 December 2010. The track laying started from the Yichang end in June 2008, and from the Wanzou end in November 2008 and completed in August 2010. Buildings and ancillary facilities were implemented simultaneously to match the implementation schedule of subgrade works. Buildings construction, electrification, signaling, and telecommunication works were completed in October 2010. Ten new railway stations have been constructed; in addition to the existing Yichang Station and Wanzhou Station were expanded under the Project. Most station access and link roads were completed, and public bus services are provided at all the stations. In addition, construction access roads of 600 km were handed over to the local governments, and most of them became the main roads in remote mountainous areas benefiting local communities. Completed. The completed consulting services under ADB financing have satisfied the purpose. The EA confirmed that the environmental management plan (EMP) and monitoring program have been implemented during construction and adverse environmental impacts have been mitigated effectively.
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2006 Nov 24
Consulting Services
The ADB loan will finance 34 person-months of international consulting services. The recruitment of consultants under the loan will be undertaken in accordance with ADB's Guidelines on the Use of Consultants, using Quality and Cost-Based Selection Method. The engagement of domestic consultants will be conducted in accordance with Government procedures acceptable to ADB.
Procurement
Civil works and goods, and equipment to be financed by ADB will be procured following international competitive bidding or international shopping, or direct purchase procedures, in accordance with ADB's Guidelines for Procurement, and using ADB's standard bidding documents. ADB-financed civil works contracts and specialized materials such as rails, sleepers, and bridge beams. Prequalified contractors with adequate technical and financial capacities will be allowed to bid for several packages and, if successful, may be awarded more than one contract based on the least-cost combination of contracts. Advance action for procurement of civil works was approved by ADB.
Procurement and Consulting Notices
http://www.adb.org/projects/35339-013/business-opportunities

Timetable

Concept Clearance 19 Jun 2001
Fact-finding 23 Nov 2002 to 06 Dec 2002
Management Review Meeting 12 May 2003
Approval 15 Dec 2003
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 2051 15 Dec 2003 27 May 2004 26 Jul 2004 30 Jun 2010 31 Dec 2011 23 Dec 2011

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
19 Apr 2014 Loan 2051 497,500 0 100.00%
Cumulative Disbursements
19 Apr 2014 Loan 2051 500,000 0 100.00%

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 2051 Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

Contacts and Update Details

Responsible ADB Officer Fang Wang (wangfang@adb.org)
Responsible ADB Department East Asia Department
Responsible ADB Divisions PRC Resident Mission
Executing Agencies Ministry of Railways
Mr. Liu Junfu

Links

Project Website http://www.adb.org/projects/35339-013/main
List of Project Documents http://www.adb.org/projects/35339-013/documents