China, People's Republic of : Central Yunnan Roads Development Project

Transport / Road transport (non-urban)

The Project was identified as a high priority project under the GMS Transport Sector Strategy, which was endorsed by the six GMS governments in 2006. The Project will help operationalize the strategic priority of strengthening connectivity and facilitating cross-border movement and tourism under ADB's Regional Cooperation Strategy and Program for the GMS. It will have a significant positive impact on the economic development of the GMS.

The expressway will reduce travel time between Wuding and Kunming by at least 1 hour and shorten the travel distance by 20 km. Improved local roads will link villages to the road network and national highways, and hence to the national and regional economy. Improved local road safety will reduce traffic accidents. A developed and efficient transport network will integrate poor isolated regions with the centers of economic growth.

The Project will directly benefit about 1.93 million people living in the project area, of whom 61% live in rural areas. Some 25% of rural people live on less than $1 per person per day. The Project will also benefit other people living in Yunnan and neighboring provinces, as well as GMS countries.

The Project will directly benefit road users (e.g., passengers, traders, transport providers, and bus and truck operators), as well as labor, the local economy, and the private sector. It will help reduce traffic accidents, vehicle emissions, and traffic noise in the corridor. The Project will also boost tourism. Rural households will be important beneficiaries-from increased incomes through better access to roads, services, markets, and other off-farm opportunities.

The Project is economically and financially justifiable and sustainable. The economic internal rate of return for the Project is estimated at 17.1%. The financial internal rate of return for the expressway component is 4.3%, which is higher than the real weighted average cost of capital.

Expressway infrastructure and associated facilities between Wuding and Kunming are operational.

Local roads in the project area are upgraded.

Traffic safety on local road network is improved.

Technical and management capacity of YPDOT, its related agencies, and WKEC is strengthened.

construction ongoing

ongoing

ongoing

To be assessed at project completion

To be assessed at project completion

To be assessed at project implementation.

servcices of consulting firm ongoing

survey ongoing

This is an environmental category A project. The environmental impact assessment (EIA) for the expressway was prepared by YPCD and approved by the Ministry of Environmental Protection in April 2007. A major environmental issue is erosion control. A soil erosion prevention plan was prepared and approved by the Ministry of Water Resources in December

2006. A summary initial environmental examination for the local roads was conducted during project preparation, which concluded that this component would not require an EIA, given that the civil works are for pavement, drainage installation, and slope protections. On the basis of the EIA, social erosion prevention plan and the field survey, a summary EIA has been prepared and endorsed by YPCD, circulated to ADB's Board of Directors, and made public through ADB's website on 3 May 2007. The EIA and summary EIA assessed the environmental impact of the Project and prescribed environmental protection and mitigation measures costing CNY57.6 million. To ensure that all the potential adverse environmental impacts of the project are mitigated, YPCD will implement the environmental management plan as specified in the EIA and summary EIA. The EMP will be incorporated in the bidding documents and contracts for civil works; it will be monitored and reported on to ADB semiannually.

All ADB-financed procurement will follow ADB's Procurement Guidelines (2007, as amended from time to time). The expressway works will be divided into 18 packages, 15 of which will be financed by ADB and procured under international competitive bidding procedures. ADB-financed equipment will be procured under international competitive bidding procedures. All other packages, including equipment for tolling, telecommunication, traffic monitoring and lighting; landscaping works, buildings, and ancillary facilities will be financed by the Government and procured under national competitive bidding (NCB) procedures. Various thresholds for procurement and the contract packages are set out in the procurement plan.

All road safety enhancement works estimated to cost $200,000 or more will be procured through NCB procedures in accordance with the PRC Tendering and Bidding Law, 1999, including clarifications agreed with ADB. All local road safety enhancement contracts expected to cost less than $200,000 will be procured using shopping procedures. Given the nature of the local road safety enhancement works, force account may be employed for works valued at less than $100,000 when size and location make it unsuitable to adopt shopping procedures (this may include work such as warning posters and signs on local roads, minor poster painting works, and other small and remote scattered works).