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.
|Project Name||Multitranche Financing Facility - Railway Energy Efficiency and Safety Enhancement Investment Program (Facility)|
|Country||China, People's Republic of
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|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|
|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.
Improved transport system in the region that supports sustainable socioeconomic development and the
western region development strategy
|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.|
|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|
|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.|
|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 $100,000, procurement will follow the shopping procedure. MOR will select tendering companies on a competitive basis to handle international bidding.|
|Responsible ADB Officer||Chu, Chenglong|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||PRC Resident Mission|
China Railway Corporation (Formerly Ministry of Railways)
10 Fuxing Road
People's Republic of China
|Concept Clearance||30 Jul 2009|
|Fact Finding||18 May 2009 to 26 May 2009|
|MRM||09 Sep 2009|
|Approval||08 Dec 2009|
|Last Review Mission||-|
|PDS Creation Date||12 Jan 2010|
|Last PDS Update||20 Mar 2015|
MFF Facility Concept 0040-PRC
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||3,238.50||Cumulative Contract Awards|
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|
|Railway Energy Efficiency and Safety Enhancement Investment Program||Procurement Plans||Nov 2009|
|Railway Energy Efficiency and Safety Enhancement Investment Program||Reports and Recommendations of the President||Nov 2009|
|Railway Energy Efficiency and Safety Enhancement Investment Program||Framework Financing Agreement||Jan 2009|
|Railway Energy Efficiency and Safety Enhancement Investment Program||Design and Monitoring Frameworks||Sep 2008|
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.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.