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 14 Mar 2006
PDS Updated as of 21 Oct 2013

Project Name Heilongjiang Roads Network Development Project
Country China, People's Republic of
Project/Program Number 39038-013
Status Approved
Geographical Location The Project is in the middle of Heilongjiang Province, PRC.
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 Transport and ICT
Subsector Road Transport
Strategic Agendas
Drivers of Change
Gender Mainstreaming Categories No gender elements

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan2247Ordinary capital resources200,000
Counterpart 324,600
TOTAL US$ 524,600

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 EIA assessed the environmental impacts of the selected alignment of the main highway and the rural link roads and prescribed environmental protection and mitigation measures. The proposed alignment does not cross or impinge on any protected areas; there are no known rare or endangered species in the project area. The project's major environmental impactsinclude soil and water conservation and erosion control A soil erosion prevention plan was prepared separately. The project area covers six counties, of which two are poor by national and provincial standards, and two cities. It had 3.4 million people as of 2004, of whom 2.3 million lived in rural areas. About 22,781 people in the project area (0.7% of the total population) are ethnic minorities, mainly Chaoxian and Manchu. The adverse impacts on ethnic minorities are insignificant. The Chaoxian are generally better off than the Han, and the Manchu live in scattered settlements. The TA concluded that the minorities will benefit from the Project in a manner that is compatible with their cultural traditions. Minorities belonging to vulnerable groups will get special assistance in economic rehabilitation and priority for career training. All affected minorities will be relocated in the original villages. The Project will give women greater access to information and jobs. Female migrant workers in search of work will find it easier to travel to urban centers. Women will benefit from increased marketing opportunities and from better access to higher-quality education and health facilities. Women will be encouraged to participate in project implementation and monitoring and in resettlement and social development.

Environmental Aspects
ADB has classified the Project under environmental category A. The EIA report for the main highway was prepared by HPCD and approved by HEPB in January 2006. The EIA for the Songhua River Bridge was approved by the State Environmental Protection Administration on 4 April 2006. HPCD ensured that the Project was designed and would be constructed and operated in accordance with government rules and regulations and ADB s environment policy. HPCD will implement the environment management plan (EMP) set out in the EIA and the summary EIA to mitigate any environmentally adverse project impacts; mitigation measures will be incorporated in the bidding documents and civil works contracts. The EIA assessed the environmental impacts of the selected alignment of the main highway and the rural link roads and prescribed environmental protection and mitigation measures. The proposed alignment does not cross or impinge on any protected areas; there are no known rare or endangered species in the project area. The Project s major environmental impacts include soil and water conservation and erosion control. A soil erosion prevention plan was prepared separately. Overall environmental impacts associated with project implementation are insignificant. PPMS consultants will update their reports. Mitigation measures reflected in SIEA and EMP adequately implemented. Dissemination of health risks information done during construction.
Involuntary Resettlement
The Project affected 6 counties, 2 cities, 36 townships, 130 administrative villages, 6 forest bureaus, and 24 forest stations. It required the relocation of 66 urban and 135 rural households, of which only a few are ethnic minorities. About 1,391 ha were permanently acquired, of which 38% are cultivated and 44% forest. Using PRC planning standards, land acquisition is an equivalent to the full loss of land of about 1,600 people. About 14,600 m2 of residential structures were demolished, requiring the relocation of 226 urban and 576 rural people. The resettlement plan was prepared based on the preliminary design, village surveys, household surveys, local government statistics, and consultations with local officials and project-affected people. It was formulated in accordance with the PRC s laws and local regulations and with ADB s policies on involuntary resettlement and indigenous people. The impact on villages is modest because farms in Heilongjiang are large. Only eight village groups will lose about 5% of their farmland. Special measures will be taken to assist 659 poor households, 11% of the total affected. House relocation will be completed ahead of time; household plots will be provided within the same village. Compensation will be paid before displacement of people or loss of land and will be invested in economic and social infrastructure to improve farmers livelihoods and living standards. Economic rehabilitation strategies have been discussed with the eight most seriously affected village groups. The cost of land acquisition and resettlement is CNY313 million, including contingencies, which anticipate an increase in compensation rates because of the application of new consolidated standards. HPCD distributed an information booklet to the affected villages and households in February 2006. Land acquisition and resettlement activities in the main highway were completed in Nov 2009. Land acquisition for the linking roads had been fully completed on 25 Dec 2009. Negative impacts caused by loss of land and property were mitigated by compensation payments and rehabilitation measures as per the RP.
Indigenous Peoples
About 22,781 people in the project area (0.7% of the total population) are ethnic minorities, mainly Chaoxian and Manchu. The adverse impacts on ethnic minorities are insignificant. The Chaoxian are generally better off than the Han, and the Manchu live in scattered settlements. The project preparatory TA concluded that the minorities will benefit from the Project in a manner that is compatible with their cultural traditions. Minorities belonging to vulnerable groups got special assistance in economic rehabilitation, and priority for career training. All affected minorities were relocated in the original villages.

Stakeholder Communication, Participation and Consultation

The social development action plan followed a consultative approach implementation. Village leaders and stakeholders were involved in monitoring the Project's progress.

During Project Design
During the preparation of the feasibility study, environmental impact assessment (EIA) and resettlement planning consultations were conducted with government agencies, villagers, local groups, and other people likely to be affected by the Project, to discuss environmental concerns, land acquisition and resettlement, and economic development potential. Village investigations and surveys were conducted to assess the Project's potential adverse effects and benefits. Over 2,400 people were interviewed during public opinion surveys, social and environmental assessments, and resettlement planning. For the resettlement plan, consultation meetings were held with representatives of affected counties, townships, and villages. Rural people were familiar with the Project and public support for it was high. Local officials explained the compensation policies and regulations to those who would lose their farmland or housing. The consultation was expanded to finalize the design and formulate compensation standards and rehabilitation measures for people displaced by land acquisition or house demolition. Villagers participated in the discussions and decisions on resettlement.
During Project Implementation
The Social Development Action Plan followed a consultative approach during implementation. Village leaders and stakeholders were involved in monitoring the Project's progress. The project strategy was to maximize employment benefits from road construction; increased job opportunities to benefit the poor. Women supported and actively participated in the road safety component, especially where young school children cross the roads.

Description

The Project, in the middle of Heilongjiang province, is designed to promote sustainable economic growth by improving the Jixi-Nehe highway, a key trunk highway in the northeast. The Project will comprise (i) the upgrading of 428 km of the Jixi-Nehe highway, from class III or unclassified to class II or I; (ii) the improvement of rural link roads, totaling 170 km, to strengthen the integrated network in the project area; (iii) rural road maintenance; and (iv) equipment, consulting services, capacity development, and land acquisition and resettlement.

Project Rationale and Linkage to Country/Regional Strategy

Cutting across the middle part of the province through 11 counties, the 775 km Jixi-Nehe corridor is a major route connecting the eastern and western parts of the northeast region. Despite its critical role in networking areas, more than a half of the corridor is either class-III or IV highways, or gravel roads, all in poor condition. Some sections have no drainage system and are impassable during winter or wet seasons. Traffic congestion due to poor road condition often causes transport costs to spiral. Likewise, the expansion of economic activities is severley hampered by poor transport conditions. The Project will upgrade about half of the Jixi-Nehe highway. Forming part of the trunk network that is vital to economic development in the northeast, the project highway will heighten transport efficiency and safety, enhance the transport network in Heilongjiang, and improve access to income-generating opportunities and social services. The Project is a Government priority as it will help revitalize the northeast region as an industrial hub, a key strategy in the 11th Five-Year Plan. The Government also assigns high priority to developing local roads to promote economic growth and reduce poverty in rural areas. The Project will receive ADB's first loan to upgrade provincial high and improve rural link roads to strengthen the local road network.

Development Impact

Improved transport system that supports economic growth and socioeconomic development in Heilongjiang province and the project area

Project Outcome

Description of Outcome
An efficient, safe, and environmentally friendly road transport system developed in Heilongjiang
Progress Towards Outcome
The project has been implemented satisfactorily. Assessment of progress in achieving the Project's outcome is pending by submission of EA's project completion report.

Outputs and Implementation Progress

Description of Project Outputs
1. Road infrastructure and associated equipment and facilities improved along the project road 2. Road infrastructure and associated facilities improved for rural link roads in the project area 3. Private sector participation encouraged in project road maintenance 4. Domestic capacity strengthened in road maintenance and management system, and monitoring and evaluation
Status of Implementation Progress (Outputs, Activities, and Issues)
1 and 2. All civil works completed. PROJECT HIGHWAY (26 ICB contracts) - Works commenced in Apr 2007 and completed in Sep 2009. Physical progress as of end Sep 2009 is 100%. BUILDINGS (10 NCB contracts) - All 10 contracts were signed on 28 Oct 2008 and completed by end Sep 2009. ADMINISTRATION FACILITIES AND GREENING (8 NCB contracts) - completed end September 2009. Road safety auditing was undertaken by the team of provincial road safety experts on the detailed designs of the project roads including the main road in March 2009 and recommendations were implemented. A road safety action plan for the project roads to be developed by May 2011. Equipment procured and installed for road safety, toll collection, communications and weigh stations. Construction of 8 toll gates were cancelled since toll charging policy on the class I road was cancelled. However toll for collection on the Harbin-Tongjian expressway was still built. LINK ROADS - ADB approved award of 14 contracts on 8 Oct 2008. 14 contracts were signed on 8 Nov 2008. Works commenced in Aug 2008 and completed in Sep 2009. 3. Selection of the road for piloting O&M concession is pending. Asset Management international consultant contract for 2 pm was signed 28 Feb 2008. Services commenced in May 2008 and was completed in Nov 2008. O&M Concession to the Private Sector for 4 domestic individual consultants for 18 pm was approved on 11 March 2009. Contracts were signed on 25 March 2009. Inception Report was submitted on 5 July 2009. 4. The overseas training has been conducted in line with the approved topics. Seven overseas training was conducted for HPTD and PMO staff on (i) contract management and quality control (in January 2008 in USA and Canada), (ii) maintenance of high class roads and large bridge (in November 2008 in France and Germany), (iii) highway financing and private sector participation (in December 2008 in France and UK), (iv) transport services and logistics (in January 2010 in USA and Canada), (v) rural road construction and maintenance (in Australia and New Zealand), (vi) sustainable economy and sustainable ecosystem of road area (in March 2010 in USA and Canada), and (vii) ITS (in October 2010 in UK and Switzerland). For the remaining training 42 people attended and the trainings were very useful. The training had been disseminated to other HPTD and PIU staff through organizing workshops.
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2006 Mar 06
Consulting Services
The Project will finance 7 person-months of international consulting services: 6 person-months for resettlement, socioeconomic, and poverty impact monitoring and evaluation; and 1 person-month for asset management and maintenance. HPCD will engage and finance around 4,900 person-months of domestic consultants. Of the 4,900 person-months of domestic consulting services, 300 person-months will be allocated to the rural link road component. About 50 person-months will be allocated to monitoring the Project's resettlement, socioeconomic, and poverty impacts. The international consultants will be financed by the ADB loan and will be recruited through a firm in accordance with ADB's Guidelines on the Use of Consulting Services by Asian Development Bank and Its Borrowers. The domestic consultants will be financed from domestic resources and will be recruited in accordance with government procedures acceptable to ADB.
Procurement
All ADB-financed procurement will follow ADB's Guidelines for Procurement. The main road civil works will be divided into 26 packages, all of which will be procured under international competitive bidding procedures (ICB). Rural link roads civil works are divided into 14 packages, all of which will be procured under local competitive bidding procedures (LCB). Equipment will be procured under international shopping procedure (IS). Road safety facilities, greening work, and ancillary facilities including the administration building will be procured using LCB. Advance action has been approved for the procurement of civil works for the Project.
Procurement and Consulting Notices
http://www.adb.org/projects/39038-013/business-opportunities

Timetable

Concept Clearance 29 Aug 2005
Fact-finding 08 Feb 2006 to 15 Feb 2006
Management Review Meeting 10 Apr 2006
Approval 26 Jul 2006
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 2247 26 Jul 2006 19 Jan 2007 07 May 2007 30 Sep 2011 01 Mar 2012

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
21 Aug 2014 Loan 2247 200,000 0 100.00%
Cumulative Disbursements
21 Aug 2014 Loan 2247 200,000 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 2247 Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

Contacts and Update Details

Responsible ADB Officer Eunkyung Kwon (ekwon@adb.org)
Responsible ADB Department East Asia Department
Responsible ADB Divisions Transport and Communications Division, EARD
Executing Agencies Heilongjiang Provincial Transportation Department
Wang Hao

Links

Project Website http://www.adb.org/projects/39038-013/main
List of Project Documents http://www.adb.org/projects/39038-013/documents