China, People's Republic of: Southern Gansu Roads Development Project

Sovereign Project | 38174-013

Summary

The Project will help promote sustainable economic growth and reduce poverty in southern Gansu. It will develop an efficient, safe, and reliable road transport system. It will also improve rural people's access to markets, income-earning opportunities, education and health services, and social activities.

The Project will (i) construct a 134-km toll expressway from Wudu to Guanzigou, (ii) upgrade 357 km of rural roads, (iii) construct 1,500 rural administrative village bus stops and class upgrading of 7 bus stations, (iv) pilot-test a road transport action plan, (v) improve corporate governance, and (vi) strengthen institutional capacity by providing consulting services and training.

Latest Project Documents

Consulting Notices

See also: CMS

No notices are currently available for this project.

Procurement Notices

See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents

Title Document Date
Southern Gansu Roads Development Project Apr 2013

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Project Name Southern Gansu Roads Development Project
Project Number 38174-013
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2295-PRC: Southern Gansu Roads Development Project
Ordinary capital resources US$ 300.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming No gender elements
Description

The Project will help promote sustainable economic growth and reduce poverty in southern Gansu. It will develop an efficient, safe, and reliable road transport system. It will also improve rural people's access to markets, income-earning opportunities, education and health services, and social activities.

The Project will (i) construct a 134-km toll expressway from Wudu to Guanzigou, (ii) upgrade 357 km of rural roads, (iii) construct 1,500 rural administrative village bus stops and class upgrading of 7 bus stations, (iv) pilot-test a road transport action plan, (v) improve corporate governance, and (vi) strengthen institutional capacity by providing consulting services and training.

Project Rationale and Linkage to Country/Regional Strategy

Remote and isolated with harsh natural conditions, the project area suffers from inadequate road infrastructure, which is a major cause of the high incidence of poverty. Within this area, the focal prefecture of the Project (Longnan) has rural poverty incidence of 42%, and 84% of the population lives in rural areas. About 57% of the 169 townships do not have all-weather roads, while 24% of the 3,237 villages have no road access and 25% lack bus service. National Highway 212 is in poor condition, and provides the only substantial link to Sichuan province, and there are no rail lines or other non-road transport modes. Residents have limited mobility beyond their localities. It takes 10-16 hours to reach Lanzhou, Xi'an, Chengdu, and Chongqing because of poor and worsening road conditions. Despite the region's economic potential, weak road infrastructure impedes socioeconomic development. The road transport network in southern Gansu needs to be improved to ease access to essential services and to link this poor, isolated region to economic growth centers.

The Project reflects the ADB road sector operational strategy for the PRC, which includes removing infrastructure constraints and supporting policy and institutional reforms. The Project supports the Government's Western Region Development Strategy, which aims to improve the investment environment and living conditions. The project expressway will reduce the trip length by 50% (from 270 km to 134 km) and cut journey time by 75% (from 6.5-9.0 hours to 1.5-2.0 hours). In addition, project interventions in rural road upgrading, township bus station construction, road transport action plan pilot-testing and training of local transport authorities will improve the availability, affordability, and efficiency of the road transport system; increase accessibility; and reduce poverty and isolation.

The Project was listed in PRC: Country Strategy and Program Update (2006-2008).

Impact Sustainable economic growth and poverty reduction in Gansu province and the project area
Project Outcome
Description of Outcome Transport conditions and services are improved in Longnan municipality
Progress Toward Outcome The Wudu-Guanzigou Expressway was completed and opened to traffic in December 2013. Upgrading of the Wudu-Lixian road commenced in 2013 and is finishing subgrade.
Implementation Progress
Description of Project Outputs

1. Wudu-Guanzigou Expressway constructed

2. Seven local roads upgraded in the project area

3. Additional rural bus stations/ stops provided in the project area

4. Regulatory framework for bus service provision improved in the project areas

5. GCHC corporate governance improved

6. Capacity enhanced for transport and logistics development, construction supervision, road safety and project management

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

Completed and opened for traffic

Completed

Completed

Proposed mitigation measures implemented

During construction locals were employed

Completed

Six roads with a length of 216 km have been upgraded. Upgrading of the 141 km Wudu-Lixian road is ongoing

All 1,500 bus stops and 30 bus stations have been completed.

Achieved. Market entry conditions have been eased by streamlining administrative procedures and experimenting on replacing licensing with registration system.

Achieved. Village transport service providers are allowed to adjust bus fares within certain range responding to the market demand.

Achieved. Service performance standards are defined in the licenses.

Achieved. Small service providers have been consolidated into 40 bus operators with 1,206 buses and 6 freight operators with 3,931 freight vehicles in Loangnan municipality. Express bus services are provided to all 9 counties, and bus services to 100% of townships and 85% of the villages.

GCHC's 2011 investment was CNY7.6 billion; in 2012, CNY10.3 billion; and 2013, CNY10.3 billion

Technical and managerial innovations have been made

One study visit to the US and Canada was fielded in Dec 2012 due to the government tight control. Gansu Provincial Expressway Administration Bureau and municipal transport bureaus provide maintenance training 2 to 3 times every year.

Geographical Location Southern part of Gansu Province
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects An environmental monitoring system including both internal and external monitoring has been established. The external monitoring is being done semi-annually and reports are disclosed at ADB website.
Involuntary Resettlement Land acquisition and resettlement for the Wudu-Guanzigou expressway is almost 100% complete.
Indigenous Peoples ADB categorized the Project as B for indigenous people because the project area is Han dominant area.
Stakeholder Communication, Participation, and Consultation
During Project Design Meaningful consultations have been organized during project preparation stage for project scope, environmental issue, and involuntary resettlement.
During Project Implementation During implementation, consultations are being carried out for resettlement and environmental protection. Compensation rates for resettlement was adjusted after these consultations.
Business Opportunities
Consulting Services The ADB loan will finance 56 person-months of international consulting services for construction supervision; provide expertise in structure engineering, traffic safety engineering, and road maintenance; and formulate a capacity development program. The international consultants will be recruited through a firm, based on full technical proposals using the quality- and cost-based selection method in accordance with ADB's Guidelines on the Use of Consultants. GPCD will engage and finance 7,600 person-months of national consulting services, including 350 for rural roads and transport services, to ensure proper design, supervision, and project management, as well as to train county communications bureau staff; 320 for environmental protection; and 30 for monitoring socioeconomic and poverty impacts. The national consultants will be recruited in accordance with government procedures acceptable to ADB.
Procurement Goods and services financed by the ADB loan will be procured in accordance with ADB's Procurement Guidelines. Civil works for the expressway will be procured through international competitive bidding, and the civil works for the rural roads and township bus stations through national competitive bidding and shopping. Equipment will be procured through international competitive bidding. Advance procurement action for civil works, and retroactive financing for eligible expenditures related to civil works were approved on 24 May 2006.
Responsible ADB Officer Cai Li
Responsible ADB Department East Asia Department
Responsible ADB Division Transport and Communications Division, EARD
Executing Agencies
Gansu Provincial Communications DepartmentMr. Wang HuipingRoom 2011, West Tower Zhongxiong Mansion
189 Jiuquan Road, Lanzhou
Gansu Province, 730030, PR China
Timetable
Concept Clearance 22 Feb 2006
Fact Finding 07 Mar 2006 to 17 Mar 2006
MRM 24 May 2006
Approval 18 Dec 2006
Last Review Mission -
PDS Creation Date 28 Apr 2006
Last PDS Update 27 Mar 2015

Loan 2295-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2006 13 Nov 2007 18 Jan 2008 30 Jun 2012 30 Sep 2015 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1,660.00 Cumulative Contract Awards
ADB 300.00 18 Dec 2006 299.61 0.00 100%
Counterpart 1,360.00 Cumulative Disbursements
Cofinancing 0.00 18 Dec 2006 299.61 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - Satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Southern Gansu Roads Development Project: Social Monitoring Report No. 2 - Liwu Highway Social Monitoring Reports Mar 2015
Southern Gansu Roads Development Project: Environmental Monitoring Report (January-October 2014) Environmental Monitoring Reports Nov 2014
Southern Gansu Roads Development Project: Social Monitoring Report No. 1 - Liwu Highway Social Monitoring Reports Jul 2014
Southern Gansu Roads Development Project: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Mar 2014
Southern Gansu Roads Development Project: Resettlement Monitoring and Evaluation Report No. 8 Social Monitoring Reports Feb 2014
Southern Gansu Roads Development Project: Environmental Mitigation Completion Report (August 2013) Environmental Monitoring Reports Aug 2013
Southern Gansu Roads Development Project (Li County to Wudu Highway): Environmental Monitoring Report (July 2013) Environmental Monitoring Reports Jul 2013
Southern Gansu Roads Development Project: Due Diligence Report on Impact of Guan’e’gou Bus Station on Ethnic Minority People Social Monitoring Reports Jul 2013
Southern Gansu Roads Development Project: Due Diligence Report on Land Acquisition and Resettlement of Six Rural Roads Social Monitoring Reports Jul 2013
Southern Gansu Roads Development Project: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Jun 2013
Southern Gansu Roads Development Project: Resettlement Monitoring and Evaluation Report No. 7 Social Monitoring Reports Feb 2013
Southern Gansu Roads Development Project: Liangshui-Wudu Highway Resettlement Plans Jan 2013
Southern Gansu Roads Development Project: Environmental Monitoring Report (June-December 2012) Environmental Monitoring Reports Dec 2012
Southern Gansu Roads Development Project: Resettlement Monitoring and Evaluation Report No. 6 Social Monitoring Reports Oct 2012
Southern Gansu Roads Development Project: Environmental Monitoring Report (January-June 2012) Environmental Monitoring Reports Jun 2012
Southern Gansu Roads Development Project: Semiannual Environmental Monitoring Report (July-December 2011) Environmental Monitoring Reports Dec 2011
Southern Gansu Roads Development Project Environmental Monitoring Reports Nov 2011
Southern Gansu Roads Development Project: Resettlement Monitoring and Evaluation Report No. 4 Social Monitoring Reports Aug 2011
Southern Gansu Roads Development Project: Resettlement Monitoring and Evaluation Report No. 3 Social Monitoring Reports Feb 2011
Southern Gansu Roads Development Project: Environmental Monitoring Report (June-December 2010) Environmental Monitoring Reports Dec 2010
Southern Gansu Roads Development Project Environmental Monitoring Reports Dec 2010
Southern Gansu Roads Development Project (Expressway and Connector Roads) Resettlement Plans Nov 2010
Southern Gansu Roads Development Project: Resettlement Monitoring and Evaluation Report No. 2 Social Monitoring Reports Jul 2010
Southern Gansu Roads Development Project: Resettlement Monitoring and Evaluation Report No. 1 Social Monitoring Reports Feb 2010
Southern Gansu Roads Development Project Environmental Assessment and Measures May 2006

Evaluation Documents

See also: Independent Evaluation

No documents found.


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