China, People's Republic of: Multitranche Financing Facility - Railway Energy Efficiency and Safety Enhancement Investment Program (Facility)

Sovereign Project | 43332-013

Summary

Ministry of Railways will implement a plan for railway development (2009-2016) at a cost of about $25 billion for capacity expansion over the southwestern region of the PRC. This includes activities such as new construction, double tracking, electrification, and rehabilitation. Within this plan, one option was to support railway construction or capacity expansion as has been done in the past and another option was to support targeted areas such as energy efficiency, environmental sustainability, and safety, where ADB's contribution could be clearly distinguished. Within this plan, ADB identified an IP of $3.24 billion to support these three areas, for which it will provide a support of $1 billion through the proposed MFF. The cost of the equipment is small compared to the cost of other capital assets or construction of a railway line but their benefits are significant; and it is easy to integrate them when the Government is implementing the development plan.

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Procurement Documents


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Project Name Multitranche Financing Facility - Railway Energy Efficiency and Safety Enhancement Investment Program (Facility)
Project Number 43332-013
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0040-PRC: Multitranche Financing Facility - Railway Energy Efficiency and Safety Enhancement Investment Program (Facility)
Ordinary capital resources US$ 1,000.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Transport - Rail transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy

Ministry of Railways will implement a plan for railway development (2009-2016) at a cost of about $25 billion for capacity expansion over the southwestern region of the PRC. This includes activities such as new construction, double tracking, electrification, and rehabilitation. Within this plan, one option was to support railway construction or capacity expansion as has been done in the past and another option was to support targeted areas such as energy efficiency, environmental sustainability, and safety, where ADB's contribution could be clearly distinguished. Within this plan, ADB identified an IP of $3.24 billion to support these three areas, for which it will provide a support of $1 billion through the proposed MFF. The cost of the equipment is small compared to the cost of other capital assets or construction of a railway line but their benefits are significant; and it is easy to integrate them when the Government is implementing the development plan. This would have high value added with a smaller investment leveraging much more value added.

The proposed IP is consistent with two of the four pillars of ADB's Country Partnership Strategy of the PRC: (i) inclusive growth and balanced development, and (ii) resource efficiency and environmental sustainability. The IP encompasses (i) network development, which will enhance capacity and reduce bottlenecks; (ii) improved energy efficiency and environmental sustainability by providing a more efficient and environment-friendly mode of transport in the region; (iii) enhanced safety through the provision of a reliable and safe mode of transport; (iv) support for the PRC railway development plan and the Western Region Development Strategy; and (v) promotion of pro-poor economic growth in the region, thereby reducing poverty.

Impact

Improved transport system in the region that supports sustainable socioeconomic development and the

western region development strategy

Project Outcome
Description of Outcome An energy-efficient, safe, reliable, affordable, and environment-friendly railway transport system is developed in the region
Progress Toward Outcome Project outcomes will be realized upon the 5 tranches' completion.
Implementation Progress
Description of Project Outputs

1. Investment program implemented by installing energy-efficient technologies, environment-friendly

equipment, and safety equipment

2. Energy efficiency and environmental issues in railway management are integrated and institutionalized

3. Safety and energy audits of a nominated railway administration

4. Capacity building support is provided

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

Tranches 1, 2 and 3 are being implemented satisfactorily.

Tranche 4 has been approved in December 2013.

Tranche 5 has been approved in February 2014.

Geographical Location Yunnan, Guangxi, Sichuan, and Guizhou Provinces; and Chongqing Municipality
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were held with the National Development and Reform Commission (NDRC), Ministry of Finance (MOF), and MOR on structuring the proposed IP.
During Project Implementation The consultation process will be continued to select the projects, as per the agreed selection criteria, to be financed under the IP. Consultations will involve the design institutes, MOR, and the railway administrations. A steering committee established by MOR will help coordinate the selection of subsequent projects for ADB-financing.
Business Opportunities
Consulting Services No consulting services.
Procurement All procurement to be financed under the MFF ADB loan will be carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). ADB will finance procurement of materials and equipment. Contracts valued equal or greater than $1 million will be procured through international competitive bidding. Contracts valued at less than $1 million will be procured through national competitive bidding, in accordance with the PRC Tendering and Bidding Law (1999), subject to modifications agreed with ADB as determined by the particular circumstances of the contract package. Below $100,000, procurement will follow the shopping procedure. MOR will select tendering companies on a competitive basis to handle international bidding.
Responsible ADB Officer Chenglong Chu
Responsible ADB Department East Asia Department
Responsible ADB Division Transport and Communications Division, EARD
Executing Agencies
China Railway Corporation (Formerly MOR)10 Fuxing Road
Beijing 100844
People's Republic of China
Timetable
Concept Clearance 30 Jul 2009
Fact Finding 18 May 2009 to 26 May 2009
MRM 09 Sep 2009
Approval 08 Dec 2009
Last Review Mission -
PDS Creation Date 12 Jan 2010
Last PDS Update 20 Mar 2015

MFF Facility Concept 0040-PRC

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 3,238.50 Cumulative Contract Awards
ADB 1,000.00 - 0.00 0.00 %
Counterpart 2,238.50 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Safeguard Documents

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Evaluation Documents

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