|Project Name||Southern Gansu Roads Development Project|
|Country||China, People's Republic of
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Transport - Road transport (non-urban)
|Gender Equity and Mainstreaming||Some gender elements|
The Project will help promote sustainable economic growth and reduce poverty in southern Gansu. It will develop an efficient, safe, and reliable road transport system. It will also improve rural people's access to markets, income-earning opportunities, education and health services, and social activities.
The Project will (i) construct a 134-km toll expressway from Wudu to Guanzigou, (ii) upgrade 357 km of rural roads, (iii) construct 1,500 rural administrative village bus stops and class upgrading of 7 bus stations, (iv) pilot-test a road transport action plan, (v) improve corporate governance, and (vi) strengthen institutional capacity by providing consulting services and training.
|Project Rationale and Linkage to Country/Regional Strategy||
Remote and isolated with harsh natural conditions, the project area suffers from inadequate road infrastructure, which is a major cause of the high incidence of poverty. Within this area, the focal prefecture of the Project (Longnan) has rural poverty incidence of 42%, and 84% of the population lives in rural areas. About 57% of the 169 townships do not have all-weather roads, while 24% of the 3,237 villages have no road access and 25% lack bus service. National Highway 212 is in poor condition, and provides the only substantial link to Sichuan province, and there are no rail lines or other non-road transport modes. Residents have limited mobility beyond their localities. It takes 10-16 hours to reach Lanzhou, Xi'an, Chengdu, and Chongqing because of poor and worsening road conditions. Despite the region's economic potential, weak road infrastructure impedes socioeconomic development. The road transport network in southern Gansu needs to be improved to ease access to essential services and to link this poor, isolated region to economic growth centers.
The Project reflects the ADB road sector operational strategy for the PRC, which includes removing infrastructure constraints and supporting policy and institutional reforms. The Project supports the Government's Western Region Development Strategy, which aims to improve the investment environment and living conditions. The project expressway will reduce the trip length by 50% (from 270 km to 134 km) and cut journey time by 75% (from 6.5-9.0 hours to 1.5-2.0 hours). In addition, project interventions in rural road upgrading, township bus station construction, road transport action plan pilot-testing and training of local transport authorities will improve the availability, affordability, and efficiency of the road transport system; increase accessibility; and reduce poverty and isolation.
The Project was listed in PRC: Country Strategy and Program Update (2006-2008).
|Impact||Sustainable economic growth and poverty reduction in Gansu province and the project area|
|Description of Outcome||Transport conditions and services are improved in Longnan municipality|
|Progress Toward Outcome||The Wudu-Guanzigou Expressway was completed and opened to traffic in December 2013. Upgrading of the Wudu-Lixian road commenced in 2013 and is finishing subgrade.|
|Description of Project Outputs||
1. Wudu-Guanzigou Expressway constructed
2. Seven local roads upgraded in the project area
3. Additional rural bus stations/ stops provided in the project area
4. Regulatory framework for bus service provision improved in the project areas
5. GCHC corporate governance improved
6. Capacity enhanced for transport and logistics development, construction supervision, road safety and project management
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Completed and opened for traffic
Proposed mitigation measures implemented
During construction locals were employed
Six roads with a length of 216 km have been upgraded. Upgrading of the 141 km Wudu-Lixian road is ongoing
All 1,500 bus stops and 30 bus stations have been completed.
Achieved. Market entry conditions have been eased by streamlining administrative procedures and experimenting on replacing licensing with registration system.
Achieved. Village transport service providers are allowed to adjust bus fares within certain range responding to the market demand.
Achieved. Service performance standards are defined in the licenses.
Achieved. Small service providers have been consolidated into 40 bus operators with 1,206 buses and 6 freight operators with 3,931 freight vehicles in Loangnan municipality. Express bus services are provided to all 9 counties, and bus services to 100% of townships and 85% of the villages.
GCHC's 2011 investment was CNY7.6 billion; in 2012, CNY10.3 billion; and 2013, CNY10.3 billion
Technical and managerial innovations have been made
One study visit to the US and Canada was fielded in Dec 2012 due to the government tight control. Gansu Provincial Expressway Administration Bureau and municipal transport bureaus provide maintenance training 2 to 3 times every year.
|Geographical Location||Southern part of Gansu Province|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||An environmental monitoring system including both internal and external monitoring has been established. The external monitoring is being done semi-annually and reports are disclosed at ADB website.|
|Involuntary Resettlement||Land acquisition and resettlement for the Wudu-Guanzigou expressway is almost 100% complete.|
|Indigenous Peoples||ADB categorized the Project as B for indigenous people because the project area is Han dominant area.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Meaningful consultations have been organized during project preparation stage for project scope, environmental issue, and involuntary resettlement.|
|During Project Implementation||During implementation, consultations are being carried out for resettlement and environmental protection. Compensation rates for resettlement was adjusted after these consultations.|
|Consulting Services||The ADB loan will finance 56 person-months of international consulting services for construction supervision; provide expertise in structure engineering, traffic safety engineering, and road maintenance; and formulate a capacity development program. The international consultants will be recruited through a firm, based on full technical proposals using the quality- and cost-based selection method in accordance with ADB's Guidelines on the Use of Consultants. GPCD will engage and finance 7,600 person-months of national consulting services, including 350 for rural roads and transport services, to ensure proper design, supervision, and project management, as well as to train county communications bureau staff; 320 for environmental protection; and 30 for monitoring socioeconomic and poverty impacts. The national consultants will be recruited in accordance with government procedures acceptable to ADB.|
|Procurement||Goods and services financed by the ADB loan will be procured in accordance with ADB's Procurement Guidelines. Civil works for the expressway will be procured through international competitive bidding, and the civil works for the rural roads and township bus stations through national competitive bidding and shopping. Equipment will be procured through international competitive bidding. Advance procurement action for civil works, and retroactive financing for eligible expenditures related to civil works were approved on 24 May 2006.|
|Responsible ADB Officer||Cai, Li|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||Transport and Communications Division, EARD|
Gansu Provincial Transport Department
Mr. Wang Huiping
F21 Jiaotong Massion
213 Jiuquan Road, Lanzhou City
Gansu Province, 730030, PRC
|Concept Clearance||22 Feb 2006|
|Fact Finding||07 Mar 2006 to 17 Mar 2006|
|MRM||24 May 2006|
|Approval||18 Dec 2006|
|Last Review Mission||-|
|PDS Creation Date||28 Apr 2006|
|Last PDS Update||23 Sep 2015|
|Approval||Signing Date||Effectivity Date||Closing|
|18 Dec 2006||13 Nov 2007||18 Jan 2008||30 Jun 2012||30 Sep 2015||28 Dec 2015|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||1,660.00||Cumulative Contract Awards|
|ADB||300.00||18 Dec 2006||300.00||0.00||100%|
|Cofinancing||0.00||18 Dec 2006||300.00||0.00||100%|
|Status of Covenants|
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.
|Title||Document Type||Document Date|
|Southern Gansu Roads Development Project||Procurement Plans||Apr 2013|
|Loan Agreement for Southern Gansu Roads Development Project between People's Republic Of China and Asian Development Bank dated 13 November 2007||Loan Agreement (Ordinary Resources)||Nov 2007|
|Project Agreement for Southern Gansu Roads Development Project between Asian Development Bank and Gansu Provincial Government dated 13 November 2007||Project/Program Agreements||Nov 2007|
|Southern Gansu Roads Development Project||Project/Program Administration Manual||Aug 2007|
|Southern Gansu Roads Development Project||Reports and Recommendations of the President||Nov 2006|
|Southern Gansu Roads Development Project||Initial Poverty and Social Analysis||Jun 2006|
|Southern Gansu Roads Development Project||Design and Monitoring Frameworks||May 2006|
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.
None currently available.
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