China, People's Republic of: Chongqing-Lichuan Railway Development Project

Sovereign Project | 39153-013 Status: Closed


ADB is helping the People's Republic of China expand its rail network in the less-developed western region. The project will build a 259-kilometer electric railway line between Chongqing municipality and Lichuan city in Hubei province. The railway will become part of the shortest east-west route connecting major cities and ports in the eastern part of the country.

Latest Project Documents

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.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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.

Project Name Chongqing-Lichuan Railway Development Project
Project Number 39153-013
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2481-PRC: Chongqing-Lichuan Railway Development Project
Ordinary capital resources US$ 150.00 million
Strategic Agendas Environmentally sustainable growth
Drivers of Change Governance and capacity development
Sector / Subsector

Transport - Rail transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description The Project will help increase living standards and reduce poverty in the project area by removing a transport constraint to sustainable economic growth, and improve safety and reliability by introducing new and modern technology. This will be achieved by providing efficient, affordable, environment-friendly, and energy-efficient railway transportation in unserved, less developed areas to create the conditions necessary for developing local resources and generating employment and income-enhancing opportunities.
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 to promote sustainable economic growth in poor areas, not served by railways. The components are formulated in line with Ministry of Railway's (MOR's) 2004 railway development plan and 11th Five Year Plan (2006-2010).

CLR 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 benefitted 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.

CLR is part of the shortest east-west corridor linking Shanghai, Qingdao, Wuhan, Yichang and other major cities and ports in the east to Chongqing and Chengdu in the west. The proposed alignment for the CLR is 369 km shorter than the existing route between Shanghai and Chengdu. Traversing Hubei Province, and Chongqing Municipality, the proposed railway line will connect with Shanghai-Wuhan-Yichang-Lichuan in the east; YuHuai railway in the center; proposed Lanzhou-Chongqing and Xi'an-Chongqing main lines in the north, Chongqing-Chengdu in the west, and Chongqing-Kunming in the south.

Impact Improved transport system in the Shanghai-Chengdu corridor that supports socioeconomic development and the western development strategy.
Project Outcome
Description of Outcome An efficient, safe, reliable, affordable, and environment-friendly railway transport system in the region.
Progress Toward Outcome The Project construction is ongoing and the outcome will be assessed upon completion of the Project.
Implementation Progress
Description of Project Outputs

1. Railway infrastructure and associated facilities improved along the Chongqing-Lichuan railway corridor.

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

3. Corporate governance promoted.

4. Institutional capacity strengthened.

Status of Implementation Progress (Outputs, Activities, and Issues) As of June 2015, the project has been fully completed and operational. The project started trial operation on 28 December 2013. The new terminal of the Chongqing North Station was completed. The loan was closed on 3 March 2015. The project completion review mission will be fielded around November 2015 and the PCR will be circulated around Q3 2016.
Geographical Location Hubei Province and Chongqing Municipality
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 of the project includes (i) noise and vibration impact on nearby residents, (ii) soil erosion from cut and fill activities, (iii) impact on surface water quality of adjacent waterways, and (iv) impact on public health and safety.

The Environment Impact Assessment (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 ADB and government environmental guidelines and procedures. The external M&E agency has been engaged and M&E reports will be submitted on semi-annual basis.

Involuntary Resettlement

The project railway alignment will affect 29 townships and 84 villages as it passes through the seven districts and counties that compose the project area. An estimated 711 hectares of land will be permanently acquired; about 62.3% of this is now under cultivation and the rest (37.1%) is predominately forestland. Since the railway will require only a narrow corridor, the average loss of land per household is estimated to be 15%; this means that about 35,000 persons will be partially affected. The Project will temporarily occupy an estimated 674 hectares during construction. Also, 391,000 square meters of structures will be demolished; of these, 86% will be residential structures, and 5,314 persons will therefore have to be relocated.

MOR, in consultation with the provincial and local governments, has prepared a resettlement plan based on the feasibility study, surveys in 48 affected villages, 337 household surveys, local government statistics, and consultations with local officials, village leaders, and affected households. The impact is spread thinly over a long, narrow corridor. Local government land administration bureaus, in conjunction with railway construction support offices, will be responsible for implementing resettlement; many activities will be carried out by township officials and village committees. The estimated resettlement cost is $69.93 million, excluding contingencies. The Chongqing municipal government will fund the entire cost of land acquisition and resettlement, as an equity contribution to the Project. The resettlement budget will be adjusted to conform to the actual measurement of physical losses, market prices, and final compensation rates. Affected people have been consulted about the likely impact during the feasibility and preliminary design stages. Resettlement information booklets, in the local language, have been distributed to the affected villages. The resettlement plan has been endorsed by MOR and uploaded to the ADB website on 4 September 2007. MOR and municipal land acquisition and resettlement offices, in collaboration with the county resettlement offices, will be responsible for internal supervision and monitoring. An external monitoring agency has been engaged and M&E reports are submitted on time.

Indigenous Peoples

A Social Development Action Plan (SDAP) was prepared in consultation with local governments to enhance the project benefits; ensure that adverse impact is avoided or mitigated; and increase economic development benefits to the poor, women, Tujia people, and the vulnerable in an equitable and sustainable manner.

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. The plan will be implemented with the participation of relevant government agencies at the local level including poverty alleviation offices, the 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 Project preparation involved participatory processes. Extensive consultations were held with all the main stakeholders, including various affected people, potential beneficiaries, village leaders, women's groups, local ethnic minority bureaus, and local governments in the project area. Household surveys were carried out, and participatory workshops were organized in the project area to understand public opinion about the Project and provide inputs for the social and environmental assessments.
During Project Implementation The above will be continued during implementation through ADB review missions, reporting of the EA, and monitoring activities of the engaged external monitoring agencies.
Business Opportunities
Consulting Services

The Government will engage and finance the services of qualified national consultants for (i) detailed project design; (ii) the preparation of technical specifications; (iii) construction supervision; (iv) construction quality assurance; (v) environmental supervision and management; (vi) the monitoring and evaluation of the resettlement plan; and (vii) socioeconomic impact assessment, evaluation of poverty reduction, and project performance monitoring.

The ADB loan will be used to finance 8 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 (80% technical and 20% financial) and simplified technical proposal, 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 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. Contracts valued at less than $1 million will be procured through international competitive bidding or national competitive bidding, according to the PRC Tendering and Bidding Law (1999) and subject to clarifications agreed on with ADB. Below $100,000, procurement will follow the shopping procedure. 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 Junfu
No. 10 Fuxing Road Beijing 100844 PRC
Concept Clearance 31 Aug 2006
Fact Finding 22 Mar 2007 to 30 Mar 2007
MRM 30 Apr 2007
Approval 08 Dec 2008
Last Review Mission -
PDS Creation Date 06 Dec 2007
Last PDS Update 04 Sep 2015

Loan 2481-PRC

Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2008 26 Aug 2009 23 Nov 2009 30 Jun 2015 - 03 Mar 2015
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1,685.50 Cumulative Contract Awards
ADB 150.00 08 Dec 2008 145.15 0.00 100%
Counterpart 1,535.50 Cumulative Disbursements
Cofinancing 0.00 08 Dec 2008 145.15 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Safeguard Documents

See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents

See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.