China, People's Republic of: Lanzhou Sustainable Urban Transport Project

Sovereign Project | 40625-013


The proposed Project is also in line with the key pillars of the new Country Partnership Strategy (CPS) of PRC namely: (i) inclusive growth and balance development, (ii) resource efficiency and environmental sustainability, and (iii) enabling environment for private sector development.

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Procurement Documents

Title Document Date
Lanzhou Sustainable Urban Transport Project Nov 2013

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Project Name Lanzhou Sustainable Urban Transport Project
Project Number 40625-013
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2601-PRC: Lanzhou Sustainable Urban Transport Project
Ordinary capital resources US$ 150.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Transport policies and institutional development - Urban public transport - Urban roads and traffic management
Gender Equity and Mainstreaming No gender elements
Description The proposed Project is also in line with the key pillars of the new Country Partnership Strategy (CPS) of PRC namely: (i) inclusive growth and balance development, (ii) resource efficiency and environmental sustainability, and (iii) enabling environment for private sector development.
Project Rationale and Linkage to Country/Regional Strategy Lanzhou, capital of Gansu Province, is one of the regional hubs between the eastern and western regions of the People's Republic of China (PRC) and is home to 3.1 million inhabitants. It is the economic, political, and cultural center of Gansu province. The city presently comprises four distinct development zones, of which three are on the south bank of the Yellow River where the current city centre of business, commerce and government is located. The fourth zone is on the north bank of the river at Anning. The Lanzhou Municipal Government (LMG) has adopted a strategy of "one river, two centers, seven groups" as a key concept of its urban master plan to optimize land use, and the economic and social functions of the city; and has decided to develop a second city center in Anning. As Anning will become the new political, administrative, economic, and cultural center of the city, there will be a significant increase in the demand for transport to, from and within Anning. The Project will contribute to the realization of the urban master plan by supporting development of the urban road network and the urban mass transport system serving the new city center. It will focus on providing a sustainable urban transport system in Lanzhou City.
Impact Sustainable economic growth, effective environmental improvement, poverty reduction, and inclusive social development in Lanzhou will be achieved.
Project Outcome
Description of Outcome An efficient, safe, and clean urban transport system in Lanzhou will be provided.
Progress Toward Outcome The overall construction progress stands at 77.1% complete, most of which is attributed to the civil works contracts A06, A07, A08, and B05. Of the 15 civil works contracts, four contracts are now under construction, eight contracts are completed, one is delayed, one is postponed, and one is on hold. The ITS contract and BRT implementation is complete. The ATCS component has been awarded is implementation is ongoing. Remaining AEMS has been been designed and is expected to be procured in 2015. The BRT bus system is in operation since January 2013.
Implementation Progress
Description of Project Outputs

1. Urban roads including BRT facility and NMT lanes are constructed or reconstructed.

2. Advanced traffic management system established

3. Advanced environmental monitoring system established

4. BRT institutional management capacity strengthened

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

(i) 4 out of 5 roads have completed construction. Of the 11 contracts awarded (including the 2 contracts under A02), 3 contracts have been completed.

BRT facility was completed in Sep 2012

(ii) Ongoing.

(iii) Yet to start

(iv) PMO staff capacity strengthened by in-house training activities that started in June 2007 and still being conducted annually.

Geographical Location Lanzhou, P.R.C.
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The environmental impact assessment (EIA) was prepared in accordance with ADB's Environment Policy (2002) and Environmental Assessment Guidelines (2003) by the Gansu Environmental Science and Design Research Institute and, in February 2009, approved by the Lanzhou Environmental Protection Bureau. ADB has reviewed, through its environment committee, the EIA and its summary, which was circulated to ADB's Board of Directors and posted on its website on 5 June 2009. The EIA assessed the environmental impacts of Project components and prescribed environmental protection and mitigation measures. To ensure that all potentially adverse environmental impacts of the Project are mitigated, the PMO will implement an environmental management plan, whose measures will be incorporated into bidding documents and contracts for civil works.
Involuntary Resettlement The Project will require significant resettlement, as 122 hectares (ha) of land will be acquired, including 49 ha of farmland, affecting 780 households. Also, 1,409 houses and 288 businesses will be demolished and relocated. The Project will adversely affect 8,000 people, nearly all of whom are rural residents or have recently registered for urban residence. As Anning is an urban district of Lanzhou, compensation standards for land acquisition and the relocation policy for rural residents there are very reasonable and have gained the support of affected households. Some efforts have been made to minimize land acquisition by considering alternative road designs, but the area has already been zoned for redevelopment so villagers will eventually be relocated. The focus of resettlement planning has therefore been to integrate affected people into the new city development zone, where they will benefit from improved living conditions and higher property values. Most people will select exchange housing in four resettlement sites that will be constructed by the Anning district government. These sites will serve other future resettlement needs, as Anning continues implementing its urban master plan, which will ensure better-quality housing, public facilities, social amenities, and commercial opportunities. The impact on income is not significant for most affected households because (i) the land lost is relatively small for the road sections and (ii) most of their income is already derived off the farm. Nonetheless, some seriously affected households and vulnerable people will receive training, employment arrangements, and/or other assistance to ensure their livelihoods are improved and sustainable. The resettlement plan and other information have been disclosed to affected villages and households.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation with communities has included focus group discussions, meetings with villages, and surveys of beneficiary and adversely affected households. Consultation were also carried out with various local government agencies and with the All China Women's Federation and the Disable People's Federation.
During Project Implementation Being conducted.
Business Opportunities
Consulting Services Consultants will be recruited in line with ADB's Guidelines on the Use of Consultants (2007), as amended from time to time. The Government will engage and finance qualified consultants for detailed engineering design, construction supervision, environmental supervision and monitoring, monitoring and evaluation of resettlement, project performance monitoring, studies and capacity building. The proposed consulting services to be financed from the ADB loan are for (i) BRT operation and management planning, (ii) traffic demand management strategy, (iii) NMT strategies in Lanzhou city, and (iv) capacity building.
Procurement All procurement to be financed under an ADB loan will be carried out in accordance with ADB's Procurement Guidelines (2007), as amended from time to time. ADB will finance (i) construction and rehabilitation of urban roads including BRT facility and NMT lanes, (ii) smart traffic management, (iii) advanced environmental monitoring, (iv) land acquisition and resettlement, and (v) capacity building.
Responsible ADB Officer Ki-Joon Kim
Responsible ADB Department East Asia Department
Responsible ADB Division Transport and Communications Division, EARD
Executing Agencies
Lanzhou Municipal GovernmentWang YoupingLanzhou, PRC
Concept Clearance 28 Apr 2009
Fact Finding 27 Apr 2009 to 08 May 2009
MRM 25 Jun 2009
Approval 11 Dec 2009
Last Review Mission -
PDS Creation Date 13 Oct 2009
Last PDS Update 30 Mar 2015

Loan 2601-PRC

Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Dec 2009 30 Mar 2010 14 Jul 2010 30 Jun 2015 30 Jun 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 480.26 Cumulative Contract Awards
ADB 150.00 11 Dec 2009 145.14 0.00 97%
Counterpart 330.26 Cumulative Disbursements
Cofinancing 0.00 11 Dec 2009 111.82 0.00 75%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - -

Evaluation Documents

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