China, People's Republic of: Lanzhou-Chongqing Railway Development Project (formerly Lanyu Railway)

Sovereign Project | 35354-013

Summary

The Lanzhou-Chongqing Railway (LCR) Development Project is in Chongqing municipality and the northwestern part of Sichuan and Gansu provinces, a relatively poor area. It is designed to promote sustainable economic growth by building 820 kilometers (km) of railway line from Lanzhou, the capital city of Gansu province, to Chongqing. The Project will (i) develop an efficient, safe, affordable, and environmentally sustainable railway transport system in the region; and (ii) help create more employment and income-generating opportunities, thus benefiting poor residents.

Latest Project Documents

Consulting Notices

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Procurement Notices

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Procurement Documents

Title Document Date
Lanzhou-Chongqing Railway Development Project Dec 2013

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Project Name Lanzhou-Chongqing Railway Development Project (formerly Lanyu Railway)
Project Number 35354-013
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2471-PRC: Lanzhou-Chongqing Railway Development Project (formerly Lanyu Railway)
Ordinary capital resources US$ 300.00 million
TA 7171-PRC: Railway Sector Energy Efficiency Strategy (piggybacked to Lanzhou-Chongqing Railway)
Clean Energy Fund - Multi-Donor US$ 800,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Transport - Rail transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description The Lanzhou-Chongqing Railway (LCR) Development Project is in Chongqing municipality and the northwestern part of Sichuan and Gansu provinces, a relatively poor area. It is designed to promote sustainable economic growth by building 820 kilometers (km) of railway line from Lanzhou, the capital city of Gansu province, to Chongqing. The Project will (i) develop an efficient, safe, affordable, and environmentally sustainable railway transport system in the region; and (ii) help create more employment and income-generating opportunities, thus benefiting poor residents.
Project Rationale and Linkage to Country/Regional Strategy

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.

Impact Improved transport system in the region that supports socioeconomic development and the western development strategy.
Project Outcome
Description of Outcome An efficient, affordable, environment-friendly, and energy-efficient railway transport system in the region.
Progress Toward Outcome The Project implmenetation is ongoing. The outcome is expected to be achieved upon completion of the Project.
Implementation Progress
Description of Project Outputs

1. Improved railway infrastructure and associated facilities along the Chongqing railway corridor.

2. Employment opportunities for poor and vulnerable groups, to raise incomes and living standards, and reduce poverty.

3. Improved corporate governance.

4. Strengthened institutional capacity.

Status of Implementation Progress (Outputs, Activities, and Issues)

As of end February 2015, the overall physical progress is estimated at 82% completed. The project has completed 99% of the earthworks, 97% of the bridge works, and 98% of the tunnel works. Track laying started in June 2011 and will be completed by August 2016. According to LCRC, the start of trial operations is expected in December 2016.

According to LCRC's latest implementation schedule: (i) the land acquisition and resettlement will be completed by December 2015, (ii) earthworks and building facilities will be completed by June 2016, (iii) track laying will be completed by August 2016, and (iv) communications and signal systems will be completed by September 2016. The entire 818.71 km railway will be operational in December 2016. The current loan closing date of 30 June 2017 remains unchanged.

Geographical Location Gansu, Sichuan, Shaanxi, Chongqing
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects

The Project is classified as ADB environmental category A.

The potential adverse environmental impact includes (i) noise and vibration impact on nearby residents; (ii) soil erosion from cut and fill activities; (iii) impact on the surface water quality of adjacent waterways; (iv) impact on public health and safety; and, (v) increased sedimentation in local waterways from spoil stockpiles. The alignment intersects (i) the Yuhe Provincial Nature Reserve, (ii) the Maozhai Provincial Nature Reserve, and (iii) the Jialing City-Level Wetland Nature Reserve. It mostly passes under these reserves in deep tunnels; however, protected flora and fauna in the nature reserves could be affected. The EIA concluded that the adverse environmental impact can be successfully mitigated through best practices and appropriate technologies. The implementation of the environmental management, mitigation, and monitoring programs included in the EIA will ensure compliance with the environmental guidelines and procedures of ADB and the Government. Internal and external monitoring and audits will see to it that standards and regulations are followed.

An independent monitoring agency has been hired to carry out external monitoring and evaluation during implementation.

Involuntary Resettlement The project railway alignment will cross 275 villages as it passes through 94 townships and 22 districts and counties. An estimated 1,646 hectares of land will be permanently acquired, of which about 83% is now under cultivation; the rest is predominately forest land, residential land, or wasteland. The loss of land will partially affect 81,400 persons. The impact is spread thinly over a long narrow corridor. The Project will temporarily require about 1,390 hectares. Also, the Project will affect 1.19 million square meters of structures, of which 94% are residential structures; 42,250 persons (12,070 households) will have to be relocated. Aligning the railway away from urban areas, village centers, and other facilities, where possible, on the basis of consultations with communities, has minimized the impact. MOR, in consultation with the local governments, has prepared a resettlement plan based on the feasibility study, surveys of most of the affected villages, 2,700 household surveys, and consultations with local officials, village leaders, and affected households. Local government land administration bureaus, in conjunction with railway construction support offices, will be responsible for implementing the resettlement; many activities will be carried out by township officials and village committees. The estimated resettlement cost is CNY2.1 billion, including land taxes, administration fees, and contingencies. MOR and municipal-level land acquisition and resettlement offices, in collaboration with the county resettlement offices, will be responsible for internal supervision and monitoring. An independent monitor has been engaged to carry out the external monitoring and evaluation during implementation.
Indigenous Peoples

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.

Stakeholder Communication, Participation, and Consultation
During Project Design 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.
During Project Implementation 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.
Business Opportunities
Consulting Services 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 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.
Responsible ADB Officer Chenglong Chu
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
China Railway Corporation (Formerly MOR)Mr. Liu Junfu10 Fuxing Road, Beijing, PRC
Timetable
Concept Clearance 09 Oct 2007
Fact Finding 08 Oct 2007 to 12 Oct 2007
MRM 10 Jan 2008
Approval 18 Nov 2008
Last Review Mission -
PDS Creation Date 13 Apr 2009
Last PDS Update 13 Mar 2015

Loan 2471-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Nov 2008 26 Aug 2009 23 Nov 2009 30 Jun 2016 30 Jun 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4,604.50 Cumulative Contract Awards
ADB 300.00 18 Nov 2008 258.10 0.00 86%
Counterpart 4,304.50 Cumulative Disbursements
Cofinancing 0.00 18 Nov 2008 80.48 0.00 27%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

TA 7171-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Nov 2008 16 Dec 2008 16 Dec 2008 31 Dec 2009 22 Jul 2011 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 800,000.00 200,000.00 0.00 0.00 0.00 1,000,000.00 18 Nov 2008 0.00
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory
Title Document Type Document Date
Lanzhou-Chongqing Railway Development Project Procurement Plans Dec 2013
Lanzhou-Chongqing Railway Development Project/Program Administration Manual Aug 2010
Loan Agreement for Lanzhou-Chongqing Railway Development Project between the People's Republic of China and Asian Development Bank dated 26 August 2009 Loan Agreement (Ordinary Resources) Nov 2008
Lanzhou-Chongqing Railway Development Project Reports and Recommendations of the President Oct 2008
Lanzhou-Chongqing Railway Development Project Design and Monitoring Frameworks Jan 2008

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Lanzhou-Chongqing Railway Development Project: Environmental Monitoring Report for Mid-2013 Environmental Monitoring Reports May 2013
Lanzhou-Chongqing Railway Development Project: Environmental Monitoring Report 2012 Environmental Monitoring Reports Nov 2012
Lanzhou-Chongqing Railway Development Project: Environmental Monitoring Report No. 5 Environmental Monitoring Reports Aug 2011
Lanzhou-Chongqing Railway Development Project: Resettlement Action Plan Monitoring Report No. 2 Social Monitoring Reports Dec 2010
Lanzhou-Chongqing Railway Development Project: Social Action Plan Monitoring Report No. 2 Social Monitoring Reports Dec 2010
Lanzhou-Chongqing Railway Development Project: Environmental Monitoring Report No. 4 Environmental Monitoring Reports Nov 2010
新建铁路兰州至重庆线2010 年中期环境监控报告 Environmental Monitoring Reports Jul 2010
Lanzhou-Chongqing Railway Development: Resettlement Action Plan Monitoring Report No. 1 Social Monitoring Reports Apr 2010
Lanzhou-Chongqing Railway Development: Social Action Plan Monitoring Report No. 1 Social Monitoring Reports Apr 2010
新建铁路兰州至重庆线2009 年度环境监控报告 Environmental Monitoring Reports Jan 2010
Lanzhou-Chongqing Railway Development: Resettlement Monitoring Report - Baseline Survey Report Social Monitoring Reports Sep 2009
新建铁路兰州至重庆线2009 年6 月环境监控报告 Environmental Monitoring Reports Jun 2009
Lanzhou-Chongqing Railway Development Project: Resettlement Plan Resettlement Plans Mar 2008
Lanzhou-Chongqing Railway Development Project: Resettlement Plan Resettlement Plans Oct 2007
Lanzhou-Chongqing Railway Project Summary Environmental Impact Assessments Aug 2007

Evaluation Documents

See also: Independent Evaluation

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