China, People's Republic of : Railway Energy Efficiency and Safety Enhancement Investment Program - Tranche IV
ADB is helping the People's Republic of China enhance railway services in its southwest regions. The fourth tranche of the program will introduce environmental protection equipment and improve railway safety, which will involve installing track safety operation and maintenance equipment, anti-seismic bridge bearings, enhanced railway fasteners, heavy duty switches, and signaling system facilities.
Project Details
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Project Officer
Chu, Chenglong
East Asia Department
Request for information -
Country/Economy
China, People's Republic of -
Modality
-
Sector
- Transport
Related Projects
| Project Name | Railway Energy Efficiency and Safety Enhancement Investment Program - Tranche IV | ||||
| Project Number | 43332-053 | ||||
| Country / Economy | China, People's Republic of |
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| Project Status | Closed | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Governance and capacity development |
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| Sector / Subsector | Transport / Rail transport (non-urban) |
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| Gender | No gender elements | ||||
| Description | Tranche 4 of the Investment Program will finance procurement of (i) environmental protection and (ii) railway safety enhancement. The outputs for this tranche are (i) environmental protection which comprises introduction of environmental protection equipment, and (ii) railway safety enhancement which comprises introduction of track safety operation and aintenance equipment, anti-seismic bridge bearings, enhanced railway fasteners, heavy duty switches, and signaling system facilities. | ||||
| 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 the three most important 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 so as to develop a sustainable, green, and safe railway system with high quality and efficient services in the PRC. On 8 December 2009, ADB approved a multitranche financing facility (MFF) in the amount of $1.0 billion to the government for the Railway Energy Efficiency and Safety Enhancement Investment Program (Investment Program) from ADB 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. |
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| 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, affordable, and environment-friendly railway transport system is developed in the region. |
| Progress Toward Outcome | To be assessed at project completion review. |
| Implementation Progress | |
| Description of Project Outputs | 1. Environmental protection 2. Railway safety enhancement |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Procurement and installation of equipment have been completed. Procurement and installation of equipment have been completed. Procurement and installation of equipment have been completed. Procurement and installation of equipment have been completed. Completed procurement of equipment. |
| Geographical Location | Chongqing, Guizhou Sheng |
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | Tranche 4 is classified as category C for all safeguard aspects (environment, involuntary resettlement, and 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 has confirmed that none of the equipment and materials to be financed under Tranche 4 will involve land acquisition, involuntary resettlement, have adverse impacts on ethnic minorities, or have negative environmental impacts. Tranche 4 has been prepared in accordance with the safeguards framework in the FFA. This is similar to the previous tranches and semi-annual safeguard assessments have confirmed there have been no impacts during implementation. |
| Involuntary Resettlement | Tranche 4 is classified as category C for all safeguard aspects (environment, involuntary resettlement, and 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 has confirmed that none of the equipment and materials to be financed under Tranche 4 will involve land acquisition, involuntary resettlement, have adverse impacts on ethnic minorities, or have negative environmental impacts. Tranche 4 has been prepared in accordance with the safeguards framework in the FFA. This is similar to the previous tranches and semi-annual safeguard assessments have confirmed there have been no impacts during implementation. |
| Indigenous Peoples | Tranche 4 is classified as category C for all safeguard aspects (environment, involuntary resettlement, and 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 has confirmed that none of the equipment and materials to be financed under Tranche 4 will involve land acquisition, involuntary resettlement, have adverse impacts on ethnic minorities, or have negative environmental impacts. Tranche 4 has been prepared in accordance with the safeguards framework in the FFA. This is similar to the previous tranches and semi-annual safeguard assessments have confirmed there have been no impacts during implementation. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Consultations were held with the National Development and Reform Commission (NDRC), Ministry of Finance (MOF), and China Railway Corporation (CRC) on structuring the Investment Program. MOF and NDRC have expressed support for the use of the MFF modality. MOF also noted that the framework approach may provide an opportunity for streamlining domestic procedures. The preliminary designs of the project have been completed. The project was approved by the steering committee and the government in December 2012. The PMO was established and staffed. Two tendering companies, CMC International Tendering Corporation and CITIC International Tendering Co., Ltd., were selected on a competitive basis to assist CRC in all ADB-financed procurements under Tranche 4. The EA is ready to draft the bidding documents for the first procurement in accordance with ADB's Procurement Guidelines. To assist in smooth implementation, an updated FAM has been prepared. |
| During Project Implementation | The consultation process will be continued to select the projects, as per the agreed selection criteria, to be financed under the Investment Program. Consultations will involve the design institutes, CRC, and the railway administrations. The steering committee established by CRC will help coordinate the selection of subsequent projects for ADB financing. |
| Business Opportunities | |
|---|---|
| Procurement | All procurement to be financed under Tranche 4 will be procured in accordance with ADB's Procurement Guidelines (2013, as amended from time to time), and as provided for in the Procurement Plan (Section VI of the FAM). |
| Responsible ADB Officer | Chu, Chenglong |
| Responsible ADB Department | East Asia Department |
| Responsible ADB Division | PRC Resident Mission |
| Executing Agencies |
China Railway Corporation (Formerly Ministry of Railways) Mr. Yang Hai Chang [email protected] 10 Fuxing Road Beijing 100844 People's Republic of China |
| Timetable | |
|---|---|
| Concept Clearance | - |
| Fact Finding | - |
| MRM | - |
| Approval | 04 Dec 2013 |
| Last Review Mission | - |
| Last PDS Update | 07 Sep 2020 |
Loan 3082-PRC
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 04 Dec 2013 | 30 May 2014 | 10 Sep 2014 | 30 Jun 2019 | - | 24 Dec 2019 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 547.60 | Cumulative Contract Awards | |||
| ADB | 180.00 | 17 Jun 2022 | 177.74 | 0.00 | 100% |
| Counterpart | 367.60 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 17 Jun 2022 | 177.74 | 0.00 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | - | - | - | - | Satisfactory |
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