China, People's Republic of: Zhengzhou-Xi'an Railway Project

Sovereign Project | 37487-013

Summary

The Project will remove a transport constraint to sustainable economic growth. Providing economic railway transporation in the unserved, less-developed, and poor areas will help create conditions necessary for developing local resources and generating employment and income-enhancing opportunities to raise living standards in the project area.

Latest Project Documents


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Project Name Zhengzhou-Xi'an Railway Project
Project Number 37487-013
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2182-PRC: Zhengzhou-Xi'an Railway Project
Ordinary capital resources US$ 400.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Rail transport (non-urban)
Gender Equity and Mainstreaming
Description The Project will remove a transport constraint to sustainable economic growth. Providing economic railway transporation in the unserved, less-developed, and poor areas will help create conditions necessary for developing local resources and generating employment and income-enhancing opportunities to raise living standards in the project area. The project comprises the following components: (i) construction of 459 km double-track electrified standard gauge Class I passenger dedicated railway between Zhengzhou and Xi'an, (ii) construction of 9 new railway stations complete with facilities, (iii) safety initiatives, including provision of modern technology and equipment for enhancing safety, (iv) e-governance and operating disptach information system, (v) provision of training on the use and maintenance of modern equipment, (vi) land acqusition and resettlement, (vii) environmental protection and mitigation of adverse environmental effects, (viii) consulting services for construction supervision, monitoring and evaluation, and marketing and business development, and (ix) strengthening of institutional capabilities. The key inputs needed for project implementation include civil works, equipment, consultants, and staff of MOR and the Project Company.
Project Rationale and Linkage to Country/Regional Strategy

The Project meets the railway sector operational strategy of ADB for the PRC to reduce railway network constraints and to promote sustainable 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 regions with better infrastructure to facilitate economic growth, thereby increasing the opportunity for people to improve their living standards. The interior regions in the PRC have not benefited as much from economic growth and reforms as the east coast. The gap in economic and social development has increased. Transport constraints and high logistics costs are two of the factors contributing to regional economic disparities and are two of the constraints that prevent the western region from capitalizing on its comparative advantages. The proposed Project is one of the eight passenger dedicated corridors to be developed by 2020. The proposed alignment for the ZXR is 50 km shorter than the existing Longhai railway line. Traversing Henan and Shaanxi Provinces, the proposed railway line with connect with Beijing-Guangzhou, Shanghai-Xuzhou and Beijing-Wuhan main lines on the east and Xi'an-Baoji-Lanzhou, Xi'an-Baoji-Chengdu, Xi'an-Ankang, and Xi'an-Yan'an main lines on the west. This is the main east-west corridor linking Beijing, Shanghai, Lianyunang and other major cities and ports in the east, Xi'an, Baoji, Lanzhou, Urumqi, Chengdu, Chongqing, in the west. The Project will also help in promoting the regional cooperation as this is the main east-west corridor linking PRC to Central Asia and Europe. The Project, a joint-venture railway between the Ministry of Railways (MOR) and Henan and Shaanxi provincial governments (HPG and SPG), will have substantial managerial and financial autonomy. The Project will contribute to changing the railway enterprises from a cost center in a planned economy to a profit center in an increasingly competitive transport market. The components are formulated in line with MOR's 2004 railway development plan.

As of end-2003, the PRC's railway system comprised 72,000 route-km of local railways including 26,700 route-km railways in the western region. The railway system reached 75,000 route-km by 2005. Given the location of the population, natural resources, and industries in the PRC, the current size of the railway network does not provide adequate coverage. There are vast inland areas in the central and western parts of the country that do not have any rail transport. The lack of railway capacity to meet the increasing demand for transportation services is constrianing economic growth. The Government's Railway Development Plan for 1998-2004 gives priority to unserved areas, particularly railway lines that would improve links between the poor inland provinces in the western and central PRC and the more prosperous coastal areas. The Project will provide a vital link between the inland provinces to the eastern region.

Impact Improved transport system in the region that supports socioeconomic development and the Western Development Strategy
Project Outcome
Description of Outcome An efficient, safe, reliable, and affordable railway transport system is developed in the region
Progress Toward Outcome A total of 52 ADB-financed contracts have been awarded, 7 for materials and 45 for equipment.
Implementation Progress
Description of Project Outputs

1. Railway infrastructure and associated facilities improved along the Zhengzhou-Xian railway corridor

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

3. Corporate governance promoted

4. Institutional capacity of the Project Company strengthened

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

Railway line and stations completed. Supply of equipment ongoing

This was complied with as confirmed in the external monitoring reports.

This will be assessed at Project Completion.

During the Loan Review Mission in Aug 2012, the EA confirmed that trainings are ongoing and a marketing program was already developed and financed by the EA.

Geographical Location Western Henan and Southeastern Shaanxi Province
Safeguard Categories
Environment A
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects

Potential adverse environmental impacts include (i) noise and vibration impacts on adjacent residents; (ii) soil erosion from cut and fill activities; (iii) disturbance of historical, cultural, and archaeological sites; (iv) impact on surface water quality of adjacent waterways;

and (v) public health and safety.

The EIA concluded that the adverse environmental impacts can be successfully mitigated through the use of best practices and appropriate technologies. Implementation of the environmental management, mitigation, and monitoring programs included in the EIA will ensure

compliance with ADB and Government environmental guidelines and procedures. Internal and external monitoring and audits were conducted to ensure that standards and regulations are followed. An independent monitoring agency was hired to carry out external monitoring and

evaluation work during implementation.

Involuntary Resettlement

MOR, in consultation with provincial and local governments, prepared a resettlement plan based on the preliminary design study; village surveys of all 170 rural villages, and all 13 village-level urban neighborhoods; 2,354 household surveys; provincial, prefecture, and local government statistics; and consultations with local officials, village leaders, and affected households. Although the total amount of land and people affected is large, these impacts are spread thinly over a long narrow corridor. Income loss from land acquisition is less severe because this corridor is developing rapidly and at least 70% of net income for more than half of rural households comes from nonagricultural employment and small businesses. Special assistance will be provided to vulnerable households that include the poor, widows, disabled, and ethnic minorities.

Local government land administration bureaus, in conjunction with railway construction support offices, are responsible for implementing resettlement; many activities were carried out by township officials and village committees.

Indigenous Peoples

The project area has 52,527 residents from 11 ethnic minority nationalities, representing 0.65% of the total population of the project area (9.5 million). The main ethnic group (83.7%) is Hui, who are descendants of Muslim traders that settled in Xi'an and Zhengzhou. About 500

may be affected by land acquisition and resettlement. Investigations reveal the Hui villagers were integrated with the Han and shared the same socioeconomic conditions. Other ethnic minorities (such as Man, Mongol, Uygur) are not affected by land acquisition and resettlement,

as they are either located in urban areas or remote villages far from the alignment. Specific provisions such as livelihood training, employment on construction, access to rural credit, assistance with house construction, and social security are included in the resettlement plan.

Ethnic minorities are also included as a target group in the social development action plan (SDAP) to enhance benefits for poor or vulnerable people in the project area.

Stakeholder Communication, Participation, and Consultation
During Project Design Various public consultation and participation activities for the Project have been conducted and the role of each stakeholder is identified. MOR, Fourth Survey Design Institute, the project preparation technical assistance consultants and ADB mission have had formal and informal consultations with local communities and government agencies through meetings, surveys, household interviews, written communications, workshops, and such, involving about 10,000 people. The local county and township governments and communities will assist MOR in acquiring land, implementing the resettlement plan (RP), and organizing local labor for construction and local development including the station area to ensure the participation and benefit of the poor, women, and other vulnerable people.
During Project Implementation CRC (former MOR), Fourth Survey Design Institute, the project preparation technical assistance consultants and ADB mission continues to have formal and informal consultations with local communities and government agencies through meetings and surveys.
Business Opportunities
Consulting Services The ADB loan will finance 20 person-months of international consulting services for (i) strengthening institutional, marketing, and business development functions of the Project Company; and (ii) researching and strengthening the development, operation, and management of the passenger-dedicated railway systems in the PRC. The consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants. Suitable domestic consulting services for project design, construction supervision, and construction quality control, environmental supervision, procurement, and monitoring and evaluation of the safeguard aspects of the Project will be engaged and financed by MOR in accordance with government procedures acceptable to ADB.
Procurement ADB-financed components will be procured by MOR in accordance with ADB's Guidelines for Procurement. Other items will be procured in accordance with government procedures acceptable to ADB.
Responsible ADB Officer Xiaoxin Chen
Responsible ADB Department East Asia Department
Responsible ADB Division Transport and Communications Division, EARD
Executing Agencies
China Railway Corporation (Formerly MOR)Mr. Liu JunfuFax No. (8610) 5184 1845No. 10 Fuxing Road Beijing 100844
Timetable
Concept Clearance 08 Mar 2005
Fact Finding 14 Mar 2005 to 25 Mar 2005
MRM 13 May 2005
Approval 22 Sep 2005
Last Review Mission -
PDS Creation Date 27 Nov 2006
Last PDS Update 30 Sep 2014

Loan 2182-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Sep 2005 03 Apr 2006 22 Aug 2006 30 Jun 2012 31 Dec 2014 20 Jan 2015
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4,131.93 Cumulative Contract Awards
ADB 400.00 22 Sep 2005 392.39 0.00 100%
Counterpart 3,731.93 Cumulative Disbursements
Cofinancing 0.00 22 Sep 2005 392.39 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory - - Satisfactory
Title Document Type Document Date
Zhengzhou-Xi’an Railway Project Procurement Plans Dec 2013
Zhengzhou-Xi'an Railway Project Project/Program Administration Manual Oct 2006
Loan Agreement for Zhengzhou-Xi'an Railway Project between People's Republic of China and ADB Loan Agreement (Ordinary Resources) Aug 2005
Zhengzhou-Xi'an Railway Project Reports and Recommendations of the President Aug 2005

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Zhengzhou-Xi'an Railway Project: Environmental Monitoring Report (January 2011) Environmental Monitoring Reports Jan 2011
新建铁路郑州至西安客运专线: 环境监控报告 (2011 年1 月) Environmental Monitoring Reports Jan 2011
Zhengzhou-Xi'an Railway Project: External Monitoring and Evaluation Report on Social Development Action Plan Phase III (December 2009) Social Monitoring Reports Feb 2010
Zhengzhou-Xi'an Railway Project: Evaluation and Monitoring Report on Resettlement Phase III (December 2009) Social Monitoring Reports Feb 2010
Zhengzhou-Xi'an Railway Project: Environmental Monitoring Report (December 2009) Environmental Monitoring Reports Dec 2009
Zhengzhou-Xi'an Railway Project: Environmental Monitoring Report (December 2008) Environmental Monitoring Reports Feb 2009
Zhengzhou-Xi'an Railway Project: External Monitoring and Evaluation Report on Social Development Action Plan Phase II (December 2008) Social Monitoring Reports Jan 2009
Zhengzhou-Xi'an Railway Project: Resettlement Monitoring and Evaluation Report on Phase II (December 2008) Social Monitoring Reports Jan 2009
Zhengzhou-Xi'an Railway Project: Evaluation Report on Social Development & Reducing Poverty from 2006 to 2007 and Evaluation Report on Gender & Development from 2006 to 2007 Social Monitoring Reports Aug 2007
Zhengzhou-Xi'an Railway Project: Resettlement Monitoring & Evaluation Report (First Phase) Social Monitoring Reports Aug 2007
Zhengzhou-Xi'an Railway Project: Environment Monitoring Report (June 2007) Environmental Monitoring Reports Jun 2007
Zhengzhou-Xi'an Railway Project: Environmental Monitoring Report (November 2006) Environmental Monitoring Reports Nov 2006
Zhengzhou-Xi'an Railway Project - China Environmental Assessment and Measures Apr 2005

Evaluation Documents

See also: Independent Evaluation

No documents found.


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