China, People's Republic of: Central Yunnan Roads Development Project

Sovereign Project | 36455-013

Summary

The impact of the Project is a well functioning integrated road transport system in Yunnan Province, part of the GMS. To realize this impact, the Project will help the YPCD provide efficient, safe, and environmentally sustainable road transport system by lowering the cost of transport, relieving traffic congestion, and improving access in the project area. The Project will (i) reduce traffic accidents and vehicle operating costs; (ii) improve access within Yunnan Province, and facilitate the movement of goods and people between the PRC and GMS; (iii) provide additional transport capacity to accommodate growing traffic; and (iv) provide improved access to markets and social services in a poor area.

Latest Project Documents


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Project Name Central Yunnan Roads Development Project
Project Number 36455-013
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2448-PRC: Central Yunnan Roads Development Project
Ordinary capital resources US$ 200.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description The impact of the Project is a well functioning integrated road transport system in Yunnan Province, part of the GMS. To realize this impact, the Project will help the YPCD provide efficient, safe, and environmentally sustainable road transport system by lowering the cost of transport, relieving traffic congestion, and improving access in the project area. The Project will (i) reduce traffic accidents and vehicle operating costs; (ii) improve access within Yunnan Province, and facilitate the movement of goods and people between the PRC and GMS; (iii) provide additional transport capacity to accommodate growing traffic; and (iv) provide improved access to markets and social services in a poor area.
Project Rationale and Linkage to Country/Regional Strategy

The Project was identified as a high priority project under the GMS Transport Sector Strategy, which was endorsed by the six GMS governments in 2006. The Project will help operationalize the strategic priority of strengthening connectivity and facilitating cross-border movement and tourism under ADB's Regional Cooperation Strategy and Program for the GMS. It will have a significant positive impact on the economic development of the GMS.

The expressway will reduce travel time between Wuding and Kunming by at least 1 hour and shorten the travel distance by 20 km. Improved local roads will link villages to the road network and national highways, and hence to the national and regional economy. Improved local road safety will reduce traffic accidents. A developed and efficient transport network will integrate poor isolated regions with the centers of economic growth.

The Project will directly benefit about 1.93 million people living in the project area, of whom 61% live in rural areas. Some 25% of rural people live on less than $1 per person per day. The Project will also benefit other people living in Yunnan and neighboring provinces, as well as GMS countries.

The Project will directly benefit road users (e.g., passengers, traders, transport providers, and bus and truck operators), as well as labor, the local economy, and the private sector. It will help reduce traffic accidents, vehicle emissions, and traffic noise in the corridor. The Project will also boost tourism. Rural households will be important beneficiaries-from increased incomes through better access to roads, services, markets, and other off-farm opportunities.

The Project is economically and financially justifiable and sustainable. The economic internal rate of return for the Project is estimated at 17.1%. The financial internal rate of return for the expressway component is 4.3%, which is higher than the real weighted average cost of capital.

Impact The impact of the Project is a well-functioning integrated road transport system in Yunnan Province and the rest of the GMS.
Project Outcome
Description of Outcome An efficient, safe, and environmentally sustainable regional transport system is developed in the project area.
Progress Toward Outcome Construction is ongoing satisfactorily and about 85% completed
Implementation Progress
Description of Project Outputs

Expressway infrastructure and associated facilities between Wuding and Kunming are operational.

Local roads in the project area are upgraded.

Traffic safety on local road network is improved.

Technical and management capacity of YPDOT, its related agencies, and WKEC is strengthened.

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

construction ongoing

ongoing

ongoing

To be assessed at project completion

To be assessed at project completion

To be assessed at project implementation.

servcices of consulting firm ongoing

survey ongoing

Geographical Location Yunnan Province
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples A
Summary of Environmental and Social Aspects
Environmental Aspects

This is an environmental category A project. The environmental impact assessment (EIA) for the expressway was prepared by YPCD and approved by the Ministry of Environmental Protection in April 2007. A major environmental issue is erosion control. A soil erosion prevention plan was prepared and approved by the Ministry of Water Resources in December

2006. A summary initial environmental examination for the local roads was conducted during project preparation, which concluded that this component would not require an EIA, given that the civil works are for pavement, drainage installation, and slope protections. On the basis of the EIA, social erosion prevention plan and the field survey, a summary EIA has been prepared and endorsed by YPCD, circulated to ADB's Board of Directors, and made public through ADB's website on 3 May 2007. The EIA and summary EIA assessed the environmental impact of the Project and prescribed environmental protection and mitigation measures costing CNY57.6 million. To ensure that all the potential adverse environmental impacts of the project are mitigated, YPCD will implement the environmental management plan as specified in the EIA and summary EIA. The EMP will be incorporated in the bidding documents and contracts for civil works; it will be monitored and reported on to ADB semiannually.

Involuntary Resettlement This is an involuntary resettlement category A project. YPCD has prepared a resettlement plan for the expressway and a short resettlement plan for the seven local roads. The land use pre-examination was approved by the Ministry of Land and Resources on 24 January 2008. By Novembere 2012, the project land acquisition and resettlement actives commenced in July 2009 and resettlement activities were still ongoing, particularly for construction of concentrated resettlement sites. So far a total of 6,264 mu of land were permanently acquired. The number of people affected by land acquisition was 22,144. A total of 266,300 m2 of buildings were demolished. The number of people affected by house demolition was 3,299. Land acquisition and resettlement impacts were minimized by aligning the expressway away from towns, village centers, and paddy lands, where possible; the urban section will be elevated to reduce impacts and disturbance. The seven local roads for upgrading include roads only require resurfacing within the existing alignment, so no resettlement will be necessary, but the short resettlement plan will provide the basis for due diligence.
Indigenous Peoples This is an indigenous peoples category A project. Ethnic minorities in the project area comprise 25% of the beneficiaries. Mitigation measures will address potential social risks, including resettlement, environmental disturbance, and transmissible diseases; these risks are mainly focused along the project expressway corridor. Enhancement measures (such as local roads, local road safety, small business development, tourism promotion, and skills training) have been targeted in poor counties in the project area, which have high concentrations of ethnic minorities and poverty villages, especially the Miao and Lisu nationalities. Special measures will be targeted at women.
Stakeholder Communication, Participation, and Consultation
During Project Design Over 2,430 people were interviewed during the preparation of the feasibility study, environmental assessment, social assessment, resettlement planning and EMDP consultations. For the assessments on environment, resettlement, and ethnic minorities, consultations were held with representatives of affected counties, townships and villages. Both rural people and urban people were familiar with the project and public support for it was high. The consultation and participation process has influenced the Project design and alignment, and the formulation of the Environmental Management Plan (EMP), RP and EMDP. To ensure equal benefit from the project, the poor, ethnic minority groups and other vulnerable groups, such as women, were separately consulted. Their needs and comments were considered in the design of project components, such as local road improvement and safety enhancement program.
During Project Implementation Stakeholder participation and consultations are ongoing.
Business Opportunities
Consulting Services The Project will finance 36 person-months of international consulting services, including 15 person-months for the team leader of the international consultants; 6 person-months each for (i) bridge, and (ii) tunnel specialists; and 3 person-months each for (i) road safety, (ii) highway design, and (iii) ITS specialists. A program for overseas training, including 85 person-months, will be included in the Project. A consulting firm will be engaged based on a full technical proposal through the quality- and cost-based selection (80% quality and 20% cost) procedures in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). The Project will also provide $100,000 to finance a local road traffic safety strategy study. Given the very small contract values and the intensive relevant experience of the national firm proposed by YPCD in the areas of the study, the firm will be selected using the single source selection method in accordance with ADB's Guidelines on the Use of Consultants. In addition, YPCD will engage and entirely finance 5,500 person-months of national consultants. The national consultants, not financed by ADB, will be recruited in accordance with government procedures acceptable to ADB. The chief supervision engineer will be responsible for overall project supervision, assisted by two deputies, one of whom will be the team leader of the international consultants.
Procurement

All ADB-financed procurement will follow ADB's Procurement Guidelines (2007, as amended from time to time). The expressway works will be divided into 18 packages, 15 of which will be financed by ADB and procured under international competitive bidding procedures. ADB-financed equipment will be procured under international competitive bidding procedures. All other packages, including equipment for tolling, telecommunication, traffic monitoring and lighting; landscaping works, buildings, and ancillary facilities will be financed by the Government and procured under national competitive bidding (NCB) procedures. Various thresholds for procurement and the contract packages are set out in the procurement plan.

All road safety enhancement works estimated to cost $200,000 or more will be procured through NCB procedures in accordance with the PRC Tendering and Bidding Law, 1999, including clarifications agreed with ADB. All local road safety enhancement contracts expected to cost less than $200,000 will be procured using shopping procedures. Given the nature of the local road safety enhancement works, force account may be employed for works valued at less than $100,000 when size and location make it unsuitable to adopt shopping procedures (this may include work such as warning posters and signs on local roads, minor poster painting works, and other small and remote scattered works).

Responsible ADB Officer Chenglong Chu
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Yunnan Provincial Department of TransportMr. Yang Yubao1 Huan Cheng West Road, Kunming
Yunnan, PRC 650031
Timetable
Concept Clearance 31 Aug 2006
Fact Finding 22 Jan 2007 to 30 Jan 2007
MRM 16 May 2007
Approval 25 Sep 2008
Last Review Mission -
PDS Creation Date 25 Jul 2007
Last PDS Update 11 Sep 2014

Loan 2448-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Sep 2008 27 Mar 2009 31 Aug 2009 30 Jun 2013 31 Mar 2014 08 Jul 2014
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 533.50 Cumulative Contract Awards
ADB 200.00 25 Sep 2008 200.00 0.00 100%
Counterpart 333.50 Cumulative Disbursements
Cofinancing 0.00 25 Sep 2008 200.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Central Yunnan Roads Development Project: Social Monitoring Report (October 2014) Social Monitoring Reports Oct 2014
Central Yunnan Roads Development Project: Social Monitoring Report (September 2014) Social Monitoring Reports Sep 2014
滇中道路發展項目:環境監測報告(1月至2013年12月) Environmental Monitoring Reports Jan 2014
Central Yunnan Roads Development Project: Social Monitoring Report (July 2013) Social Monitoring Reports Jul 2013
Central Yunnan Roads Development Project: Social Monitoring Report (June 2013) Social Monitoring Reports Jun 2013
Central Yunnan Roads Development Project: Environmental Monitoring Report (July-December 2012) Environmental Monitoring Reports Mar 2013
Central Yunnan Roads Development Project: Wuding-Kunming Expressway Social Monitoring Reports Oct 2012
滇中道路發展項目:環境監測報告(2012年1月 - 6月) Environmental Monitoring Reports Jul 2012
Central Yunnan Roads Development Project: Environmental Monitoring Report (July-December 2011) Environmental Monitoring Reports Jan 2012
Central Yunnan Roads Development Project: Environmental Monitoring Report (January-June 2011) Environmental Monitoring Reports Jul 2011
Central Yunnan Roads Development Project: Wuding-Kunming Expressway Social Monitoring Reports Jun 2011
Central Yunnan Roads Development Project: Wuding-Kunming Expressway Resettlement Planning Documents Feb 2011
Central Yunnan Roads Development Project: Wuding-Kunming Expressway Social Monitoring Reports Feb 2011
滇中道路發展項目:環境監測報告(2010年7月) Environmental Monitoring Reports Jan 2011
Central Yunnan Roads Development Project: Environmental Monitoring Report (January-June 2010) Environmental Monitoring Reports Aug 2010
Central Yunnan Roads Development Project Indigenous Peoples Plans/Indigenous Peoples Development Plans May 2007
Central Yunnan Roads Development Project Environmental Assessment and Measures Apr 2007

Evaluation Documents

See also: Independent Evaluation

No documents found.


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