China, People's Republic of: Railway Energy Efficiency and Safety Enhancement Investment Program - Tranche 5

Sovereign Project | 43332-054

Summary

On 8 December 2009, ADB approved a multitranche financing facility (MFF) in the amount of $1.0 billion to the Government of the People's Republic of China (PRC) for the Railway Energy Efficiency and Safety Enhancement Investment Program from ADB's ordinary capital resources with interest determined in accordance with ADB's LIBOR-based lending facility and such other terms and conditions set forth in the related loan agreement. The Framework Financing Agreement (FFA) was signed between the PRC and ADB on 10 November 2009. The impact of the investment program will be an improved transport system in the southwestern region of the PRC that supports sustainable socioeconomic development. The outcome will be an energy-efficient, safe, reliable, affordable, and environment-friendly railway transport system developed in the region.

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Project Name Railway Energy Efficiency and Safety Enhancement Investment Program - Tranche 5
Project Number 43332-054
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3109-PRC: Railway Energy Efficiency and Safety Enhancement Investment Project - Tranche 5
Ordinary capital resources US$ 170.00 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 On 8 December 2009, ADB approved a multitranche financing facility (MFF) in the amount of $1.0 billion to the Government of the People's Republic of China (PRC) for the Railway Energy Efficiency and Safety Enhancement Investment Program from ADB's ordinary capital resources with interest determined in accordance with ADB's LIBOR-based lending facility and such other terms and conditions set forth in the related loan agreement. The Framework Financing Agreement (FFA) was signed between the PRC and ADB on 10 November 2009. The impact of the investment program will be an improved transport system in the southwestern region of the PRC that supports sustainable socioeconomic development. The outcome will be an energy-efficient, safe, reliable, affordable, and environment-friendly railway transport system developed in the region. The outputs of the investment program comprise (i) introduction of energy-efficient technologies and environment-friendly and safety equipment; (ii) integration and institutionalization of energy efficiency and environmental issues in railway management; (iii) safety and energy audits of a nominated railway administration; and (iv) capacity building support.
Project Rationale and Linkage to Country/Regional Strategy

With railway network extension, energy efficiency, environmental sustainability and safety enhancement have been important elements of the ADB policy dialogue with the China

Railway Corporation (CRC), formerly the Ministry of Railways (MOR). These were identified as key areas of sustainable development in the Eleventh and Twelfth Five-Year Plans (11FYP and 12FYP). ADB helped create awareness of these three issues and encouraged the use of clean energy and energy-efficient technologies, safety enhancement, and environmental improvements in railway construction, operation, and maintenance to support the development of a sustainable, green, and safe railway system with high quality and efficient services in the PRC.

Impact Improved transport system in the southwestern region that supports sustainable socioeconomic development and the western region development strategy
Project Outcome
Description of Outcome An energy-efficient, safe, reliable, and environment-friendly railway transport system developed in the region
Progress Toward Outcome As of February 2015, 2 lots are being procured. Contracts are expected to be awarded within second quarter of 2015. Other remaining packages are expected to be procured in 2015 and 2016. The project is being implemented smoothly.
Implementation Progress
Description of Project Outputs

1. Energy efficiency

2. Railway safety enhancement

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The investment program selection criteria require that equipment installation should not involve land acquisition, have adverse impacts on ethnic minorities, or have negative environmental impacts. The EA s assessment indicates that Tranches 1, 2, and 3 have no land acquisition or resettlement activity associated with the procurement and installation of the selected equipment and materials. The review carried out by ADB and the EA visited the project s site periodically, and observed there was no negative environmental impact at the sites.
Involuntary Resettlement The EA has confirmed that none of the equipment and materials to be financed under Tranche 5 will involve land acquisition, involuntary resettlement, have adverse impacts on ethnic minorities, or have negative environmental impacts. Tranche 5 has been prepared in accordance with the safeguards framework in the FFA.
Indigenous Peoples The investment program selection criteria require that equipment installation should not involve land acquisition, have adverse impacts on ethnic minorities, or have negative environmental impacts. The EA s assessment indicates that Tranches 1, 2, and 3 have no land acquisition or resettlement activity associated with the procurement and installation of the selected equipment and materials. The review carried out by ADB and the EA visited the project s site periodically, and observed there was no negative environmental impact at the sites. Tranche 5 will finance procurement of energy efficiency and railway safety enhancement equipment in the southwestern region of the PRC. The EA has confirmed that none of the equipment and materials to be financed under Tranche 5 will involve land acquisition, involuntary resettlement, have adverse impacts on ethnic minorities, or have negative environmental impacts. Tranche 5 has been prepared in accordance with the safeguards framework in the FFA.
Stakeholder Communication, Participation, and Consultation
During Project Design CRC will undertake consultations with key stakeholders who are related to the introduction of energy-efficient technologies, environment-friendly equipment, and safety equipment. Communication with stakeholders will be managed by the PMO public communication with the support of concerned municipal agencies. The PMO staff will ensure that the local stakeholders are consulted, that information on the project is disseminated, and that questions and complaints are addressed quickly and effectively.
During Project Implementation CRC will continue consultations with key stakeholders.
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 JunfuCRC_WZB@163.COM10 Fuxing Road
Beijing 100844
People's Republic of China
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 07 Feb 2014
Last Review Mission -
Last PDS Update 13 Mar 2015

Loan 3109-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Feb 2014 30 May 2014 10 Sep 2014 30 Jun 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 580.15 Cumulative Contract Awards
ADB 170.00 07 Feb 2014 10.17 0.00 6%
Counterpart 410.15 Cumulative Disbursements
Cofinancing 0.00 07 Feb 2014 0.00 0.00 0%

Safeguard Documents

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