Feasibility of Network Implementation and Design

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					Technical Assistance Consultant’s Report




Project Number: Tar 37125, TA No. 4322-PRC
June 2006




People’s Republic of China:

Poverty Impact of Area Wide Road Networks

Financed by the Poverty Reduction Cooperation Fund


IMPROVED GUIDELINES FOR ROAD NETWORK
FEASIBILITY STUDY

Prepared by
CPCS Transcom - Louis Berger International Consortium
Ottawa, Canada & Washington D.C., United States


For Ministry of Communications, People’s Republic of China

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and
ADB and the Government cannot be held liable for its contents. (For project preparatory technical
assistance: All the views expressed herein may not be incorporated into the proposed project’s design.)
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                                               PREFACE

The technical assistance (TA) was initiated to complement the operational programs of the Government
of the People’s Republic of China (PRC) and Asian Development Bank (ADB), financed on a grant basis
by DFID's Poverty Reduction Cooperation Fund, and approved by ADB in March 2004. The TA was
implemented by the Comprehensive Planning Department (CPD), Ministry of Communications (MOC),
PRC.

The TA aims to improve planning of road network investments and operations in the PRC, which will
benefit the poor and increase overall economic benefits from road network investments through better
linkage between local roads and National Trunk Highway System (NTHS). In view of the tremendous
growth expected and current obstacles, the TA will help the Government prepare a road network strategy
that promotes, in an integrated manner, expressways and local roads to meet communities’ needs and
support economic growth. The TA will provide road agencies with the cross-disciplinary skills and tools to
incorporate poverty- and stakeholder-related issues in various stages of road project planning,
implementation, and operation.

The TA study was undertaken by domestic and international experts, and involved field surveys,
investigations, and discussions at various government levels. To ensure the study process resulted in a
practical application, workshops were held from the inception stage with a wide participation of
representatives from the State Council, Ministry of Finance (MOF), MOC, National Development and
Reform Commission, and selected provincial planning commissions, and communications departments to
identify current obstacles and needs, and decide on the direction and procedures of the study. A national
expert group was also established to review the consultant reports and provide advice. A Transport
Planning Unit (TPU) was established, to act as an expert body, and to provide advice after the TA. A
steering committee comprises DG CPD, and Directors of Planning and Highway Divisions, MOC, and
NDRC, and MOF representatives was also established to provide high level guidance. Training sessions
were then conducted to familiarize staff of the central Government agencies and selected provinces with
the TA output.

The TA has provided road agencies and policy makers with a methodology and supporting tools and
systems to enhance area-wide road network investment planning, and move away from the current
practice of a single-project approach. The TA has also addressed the matter of balancing of investment
between economic return to the economy as a whole and investments targeted directly to providing
benefits to the poor who inhabit the region or area in which the investment is taking place, specifically.
While most earlier approaches have relied on home interviews to test how the residents perceive of the
benefits that will be derived from the new investment, the TA project takes a different approach. It
examines who will be using the new road investment and determines from those users, how best to
maximize the benefits to the poor. It is thus possible to examine how a variety of options for investment
in an area over a wide variety of roads can be optimized through offering sufficient economic benefit that
the investor is satisfied with, while at the same time, providing maximum benefit to the poor within that
acceptable level of economic return.

The key outputs of the TA are as follows:

    •    Final Report (consolidated TA report) -
    •    Area Wide Road Network Model (ARNM) - A screening tool to identify attractive road investment
         projects for feasibility studies, and supporting analytical tools
    •    Improved Guidelines for Road Network Feasibility Study - The feasibility study is the basis for
         project development, and selection for funding
    •    Information System – Integrated Transport, Engineering, Economics, and Social Data System, to
         support new planning methodology, ARNM, feasibility study, analysis, and base line data
    •    Supporting user manuals, guidelines, instruction video, and CDs
    •    Poverty Data Processing Module and supporting user manual
    •    Establishment of a Transport Planning Unit of the Project



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    •    Pilot projects to test the TA output, and for future implementation
    •    Road construction and monitoring system - One stop system to facilitate implementation and
         monitoring of the projects
    •    Capacity building and human resources development - Training of EA, TPU, & staff of selected
         Provinces and agencies, and involvement in the TA implementation
    •    Development of a TA project website

Subsequently, a workshop was held at the ADB HQ to present TA output to ADB staff, to gain feedback,
exchange ideas, discuss lesson learned, and add value to the TA output. The workshop was attended by
DG CPD, Directors of Planning and Highway Divisions, MOC, NDRC and MOF representatives, and Chief
of the TA implementation unit, MOC. Senior ADB staff, Executive Director of ADB Board of Directors, and
representatives of the Public Work and Highway Department, Philippines also attended.

The TA will provide long run cost savings for project planning, implementation and operation, better
integration of local roads and expressways, better safety and efficiency of the system, and economic
growth, and impact on poor. The MOC has commended that– the success of the TA output is owing to
the well prepared TA with highly relevant objectives, efficient TA preparation and administration, and high
level Government involvement. DG CPD requested the MOC and provincial communications departments
to familiarize themselves with the TA output and systems. The TA output will be disseminated to all
planning officials at the annual MOC training seminar. The TA output will be implemented on a pilot basis
in some ADB–financed project areas, prior to the national implementation.


This particular deliverable is the set of Improved Guidelines for Road Network Feasibility Study.




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                                              TA TEAM

Asian Development Bank (ADB)

Mr Nigel Rayner, Director, Transport Division, East Asia Department
Dr Kim Jraiw, Senior Transport Specialist, TA Team Leader

Project Implementation Unit, MOC

Ms. Xia Hong, Acting Director, Foreign Capital Utilization Office (FCUO), MOC-Chief
Ms. Zheng Wenying, Deputy Director, Information and Statistics Division, CPD, MOC
Mr. Liu Zhanshan, Deputy Director, Highway Planning Division, CPD, MOC
Mr. Fan Zhenyu, Senior Engineer, Highway Planning Division, CPD, MOC

Steering Committee

Mr. Dong Xuebo, Director General, Comprehensive Planning Department (CPD), MOC
Mr. Pang Song, Deputy Director General, CPD, MOC
Ms Liu Fangyu, Director TA Division, MOF
Mr Fei Zhirong, Deputy DG, West Region Development Leading Group, State Council
Mr. Cui Xuezhong, Director, Comprehensive Planning Division, CPD, MOC
Mr. Wang Tai, Director, Highway Planning Division, CPD, MOC
Mr. Kong Fanguo, Director, Information and Statistics Division, CPD, MOC

Transport Planning Unit (TPU)

Mr. Liu Zhanshan, Deputy Director, Highway Planning Division, CPD, MOC-Chief
Ms. Xia Hong, Director, Foreign Capital Utilization Office, MOC
Mr. Fan Zhengyu, Senior Engineer, Highway Planning Division, CPD, MOC
Mr. Gui Bin, Senior Engineer, Highway Planning Division, CPD, MOC
Ms. Zhang Xuelian, Deputy Director, FCUO, Guangxi Communications Department
Mr. Zhao Tao, Deputy Director, Planning Division, Guangxi Communications Department
Mr. Lai Huaifu, Senior Transport Planner, Senior Advisor of the TA

Consultants

International
         Dr. Greg Gajewski, Co-Team Leader, Poverty Expert, Louis Berger International
         Mr. Marc-Andre Roy, Co-Team Leader, IS Expert, CPCS Transcom
         Prof. Hamish Taylor, IS and Modeling Expert, CPCS Transcom
         Mr. Michael Scott, Team Leader, Highway Engineer, Louis Berger International
         Mr. Greg Wood, Policy Expert, CPCS Transcom
         Ms. Elizabeth Rankin, Transport Economist, CPCS Transcom
         Dr. Ed Petersen, IS and Modeling Expert, CPCS Transcom

Domestic
       Ms. Tian Feng, Deputy Team Leader, Policy Expert, CHELBI
       Mr. Zhao Guangbin, Highway Engineer, CHELBI
       Mr. Zhao Shengchuan/Mr. Sun Xiaonian, Transport Economist, CATS
       Mr. Xiao Ling/Ms. Wang Wanying, Social and Poverty Expert, CHELBI
       Ms. Wang Wei, IS Expert, CATS
       Ms. Huang Lili, IS Development Expert, CATS
       Mr. Zhang Yandong, IS Expert, CATS




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National Experts

1. Leader – Mr. Shi Liangqing, Deputy Director, Transport Planning and Research Institute, MOC.
2. Member – Ms. Liu Limei, Senior Engineer, Transport Planning and Research Institute, MOC.
3. Member – Mr. Zhang Yuanfang, Deputy Director General, Highway Research Institute, MOC.
4. Member – Mr. Shi Baolin, Deputy Director General, China Academy of Transport Sciences.
5. Member – Mr. Cao Mo, Deputy Director, China Academy of Transport Sciences.
6. Member – Mr. Wang Chengji, Deputy Chief Engineer, China Academy of Transport Sciences.
7. Member – Mr. Lai Huaifu, Senior Engineer, Transport Planning Association.
8. Member – Mr. Xue Huihua, Consultant.
9. Member – Mr. Song Jingxin, Director, Foreign Capital Utilization Office, Hebei Provincial
   Communications Department.
10. Member – Mr. Li Shangyan, Senior Engineer, Guangxi Communications Department.
11. Member – Mr. Huang Rusheng, Director, FCUO, Guangxi Communications Department
12. Member – Mr. Jin Bingxian, Chief Engineer, Highway Bureau, Guangxi Communications Department.
13. Member – Mr. Wei Zhicheng, President/Senior Engineer, Jinling Transport Association.
14. Member – Mr Zhang Libin, Director, Transport Planning and Research Institute.




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                                       ACKNOWLEDGEMENTS

        The Consultant Team would like to thank all those who have taken part in carrying out this
Technical Assistance and in particular in assisting in developing the high caliber outputs, including the
preparation of this Final Report. There was a tremendous amount of work which had to be undertaken in
terms of data collection and analysis, design and development of a user friendly and country appropriate
Information System to accommodate not only the specific needs of the Area Wide Road Network Model
(ARNM) but also form the basis more a more in-depth system of analysis and feasibility study of future
road investments. This has proven to be a significant task and it could not have been accomplished
without our domestic counterparts from CATS and MOC.

        In addition the team would particularly like to thank the Baise Communications Department as
well as the Guangxi Communications Department for their contributions in ensuring that the project is a
success by allowing us to use the province as a pilot study area to test our approaches, methodologies
and systems, including our survey questionnaires and survey techniques. This assistance in the pilot
study has proven to be invaluable.

         We would also like to thank the support given by all of the Team’s counterparts, especially those
from MOC and the TPU, who have worked tirelessly to make certain that our needs for ensuring study
quality are met and have been available whenever necessary for in-depth and detailed discussions on
various project aspects. Finally we would also like to thank the ADB for its guidance and continuous
support.




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                                                           TABLE OF CONTENTS

                                                                                                                                                        Page
1. Introduction .............................................................................................................................................. 8


A. Engineering and Economic Guidelines

B. Social and Poverty Analysis Guidelines

C. Resettlement Guidelines

D. Monitoring and Evaluation Guidelines

E. Road Safety Guidelines

F. Environmental Assessment Guidelines for Highway Projects




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                         ABBREVIATIONS ANS ACRONYMS


AADT     annual average daily traffic
ADB      Asian Development Bank
BOT      build-operate-transfer
CATS     China Academy of Transportation Sciences
CB       Communications Bureau
CPCS     CPCS Transcom Ltd
CRTA     China Road Transport Association
EA       Executing Agency
EPA      Environmental Protection Administration
EPB      Environmental Protection Bureau
GDP      Gross Domestic Product
GZAR     Guangxi Zhuang Autonomous Region
GCD      Guangxi Communications Department
GCICAB   Guangxi Communications Infrastructure Construction Administration Bureau
GEAB     Guangxi Expressway Administration Bureau
GHAB     Guangxi Highway Administration Bureau
ICAD     Industry and Commerce Administration Department
MOC      Ministry of Communications
MOFTEC   Ministry of Foreign Trade and Economic Cooperation
MOR      Ministry of Railways
MPS      Ministry of Public Security
NBS      National Bureau of Statistics
NDRC     National Development and Reform Commission
NGO      non-government organization
NTHS     National Trunk Highway System
PCD      Provincial Communications Department
PPC      Provincial Planning Commission
PRC      People’s Republic of China
PSB      Public Security Bureau
SOE      state-owned enterprise
TA       technical assistance
TAB      Transport Administration Bureau
TOR      terms of reference
WB       World Bank
WDS      Western Development Strategy
WTO      World Trade Organization




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                                       I.      INTRODUCTION

1.      This set of Improved Guidelines for Road Network Feasibility Study was designed to provide
additional guidance on conducting feasibility studies for planning of investments in a road networks. This
set of improved guidelines is in line with the new road investment planning methodology developed as
part of TA No. 4322-PRC, which seeks to help balance the sometimes competing needs of economic
growth while maximizing the benefits to the poor. The guidelines are designed to provide guidance to
PRC Executing Agencies (EA), Implementing Agencies (IA), consultants, construction contractors, and
highway operators.
2.      The complete set of Improved Guidelines for Road Network Feasibility Study consists of 6
sections (A-F), each under separate tabs in this volume. The six sections are as follows:

    •    A. Engineering and Economic Guidelines

    •    B. Social and Poverty Analysis Guidelines

    •    C. Resettlement Guidelines

    •    D. Monitoring and Evaluation Guidelines

    •    E. Road Safety Guidelines

    •    F. Environmental Assessment Guidelines for Highway Projects




                        CPCS Transcom – Louis Berger International Consortium
Technical Assistance Consultant’s Report




Project Number: Tar 37125, TA No. 4322-PRC
June 2006




People’s Republic of China:

Poverty Impact of Area Wide Road Networks

Financed by the Poverty Reduction Cooperation Fund


IMPROVED GUIDELINES FOR ROAD NETWORK
FEASIBILITY STUDY:
ENGINEERING AND ECONOMIC GUIDELINES
Prepared by
CPCS Transcom - Louis Berger International Consortium
Ottawa, Canada & Washington D.C., United States


For Ministry of Communications, People’s Republic of China

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and
ADB and the Government cannot be held liable for its contents. (For project preparatory technical
assistance: All the views expressed herein may not be incorporated into the proposed project’s design.)
                                                                               Improved Guidelines for Road Network Feasibility Study
                                                                                     Section A: Engineering and Economic Guidelines

                                                               TABLE OF CONTENTS

                                                                                                                                                               Page
OVERVIEW ........................................................................................................................................................1
 Outline.............................................................................................................................................................1
 Main Users of this Guideline ...........................................................................................................................2

STATUS QUO OF ROAD PLANNING AND CONSTRUCTION.........................................................................2

MODIFICATION OF TRANSPORT PLANNING GUIDELINES (ARNM)............................................................4
 Foundation of ARNM Operation......................................................................................................................4
 Traffic ..............................................................................................................................................................4
 Cost and Benefit of Construction Project........................................................................................................5
 Investment Assessment Model for Construction Projects ..............................................................................6
 Poverty Impact ................................................................................................................................................6

STATUS QUO OF FEASIBILITY STUDY FOR HIGHWAY PROJECT..............................................................6
  Development Course ......................................................................................................................................6
  Main Achieved Outcomes .............................................................................................................................23
  Main Deficiencies ..........................................................................................................................................23

TRAFFIC SURVEY...........................................................................................................................................24
  Current Survey and Analysis Method ...........................................................................................................24

TRAFFIC AND POVERTY DATA NECESSARY FOR ARNM .........................................................................30
  ARNM Input Data ..........................................................................................................................................30
  Update of Traffic and Social Impact Survey Parameters..............................................................................30

SURVEY METHOD OF TRAFFIC DATA NECESSARY FOR ARNM..............................................................33
 Development of Survey Forms for the Road Network Model .......................................................................33
 Traffic Volume Survey Form .........................................................................................................................33
 Freight Cost Survey Form.............................................................................................................................33
 Social Survey Form.......................................................................................................................................33

GUIDELINE FOR DESIGN OF ENGINEERING PROPOSAL..........................................................................50
 Current Design Specifications for Highway Engineering ..............................................................................50
 Future Development .....................................................................................................................................53

SAFETY AUDIT GUIDELINES FOR HIGHWAYS............................................................................................53
  Status Quo of Safety Audits in China............................................................................................................53
  Feasibility Study Stage .................................................................................................................................53
  Design Stage.................................................................................................................................................54
  Operation Stage ............................................................................................................................................56
  Assessment to Low Class Road ...................................................................................................................56
  Safety Audit Considering Poverty Impact .....................................................................................................57

ECONOMIC EVALUATION GUIDELINE..........................................................................................................57
 Evaluation for Expressway............................................................................................................................57
 Evaluation of the Distribution of Benefits and Poverty Impacts ....................................................................57
 Poverty Impact Analysis................................................................................................................................58

PHILIPPINES CASE STUDY ...........................................................................................................................68
 Political-Economic Background ....................................................................................................................68
 Philippines Rural Road Project I ...................................................................................................................70




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                                                         Section A: Engineering and Economic Guidelines

                                                SECTION A:

                           ENGINEERING AND ECONOMIC GUIDELINES

OVERVIEW

   Outline

   (i)       Basic construction procedures for highway construction and planning are well established in
             China. These procedures have corresponding regulations and policies for planning of
             national and provincial highways, approval of road projects, and preparation of project and
             implementation cycles.
   (ii)      A strong role for planning is well-supported in China. Since the 1980s, the highway authority
             has put forward a national highway network system planning program. At the beginning of the
             1990s, a national trunk highway system (NTHS) planning was established. The Compiliation
             Method for Road Network Planning, was designed to guide implementation of the NTHS and
             the Compilation Method for Feasibility Study Reports of Waterway and Highway Construction
             Projects (1998) was developed by the Ministry of Communications of PRC (MOC) to guide
             project preparation and provide a sound foundation for road network planning.
   (iii)     With more than two decades of construction development, total highway mileage in China
             has reached 1.856 million km, with 34,200 km of expressways, ranking second in total
             expressway mileage in the world. Rapid highway construction provides strong support for
             rapid economic development. However, sustainable development, and its effect on the
             current economic development situation, is a global issue facing the world economy as a
             whole, including the Chinese economy and highway construction industry. It is hoped that, in
             the future, the road networks in the more developed eastern and central areas would grow
             and the overall quality level would be improved while highway construction in wide western
             areas would deal effectively with new challenges. These challenges include difficult physical
             terrain, high construction costs, and a slow regional economy that lags behind the more
             developed eastern areas. In addition, poverty is high in this region, and the infrastructure
             construction industry is severly lacking in both skill and capacity.
   (iv)      According to the current Compiliation Method for Road Network Planning and the
             Compilation Method for Feasibility Study Reports of Waterway and Highway
             Construction Projects, new road network planning and feasibility study reports shall be
             provided mainly based on relevant analyses of the national economic development program,
             and deficiencies in the existing road network for preparation of network planning and
             proposed projects. However, during the preparation process of such network planning and
             feasibility study reports, little attention is paid to the impact of the implementation of highway
             construction projects on poverty reduction and resettlement in project areas. For such lending
             agencies as the Asian Development Bank (ADB) and the World Bank (WB), more emphasis
             is placed on examining the impacts of project implementation on poverty reduction and
             assessment of resettlement plans during the project selection process, which is substantially
             different from the current methods used in China. To promote sustainable development and
             infrastructure projects for the Chinese economy, the new development trend requires a
             modification of the current project selection method used in road network planning and the
             current project preparation methods for feasibility studies. The studies in this paper are in this
             context.
   (v)       The Terms of Reference developed by MOC and ADB, as well as the Interim Workshop
             organized by this TA Project, require developing new modified guidelines for project
             prioritization and feasibility study methods. Therefore, the new guidelines in this paper are
             provided based on the summarization of outcomes of this TA study project, practices in
             highway planning, and feasibility studies conducted in China since the implementation of the
             Open and Reform Policy.




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                                                        Section A: Engineering and Economic Guidelines

   Main Users of this Guideline

   (vi)     As an effective tool and measure, this Guideline could be used by the following agencies:
            • Transport authority departments could use this Guideline as an assessment tool to select
                those projects which would not only conform to the overall transport development
                strategy and construction planning, but also play a positive role in poverty reduction;
            • Design consulting units could use these Guidelines to prepare candidate project
                packages and feasibility study reports for the ADB and relevant transport authorities; and
            • The ADB and other international financial agencies could use these Guidelines to
                evaluate the projects listed in Country Strategy, the prioritization of projects, and their
                viability.

STATUS QUO OF ROAD PLANNING AND CONSTRUCTION

   (vii)    Basic construction procedures are well established in China for highway construction and
            planning, which have corresponding regulations and policies for planning national and
            provincial highways, approval of road projects, and preparation of project and implementation
            cycles, among other things.
   (viii)   The table in next page shows the main methods and objectives of highway planning in China.
   (ix)     It may be inferred from the currently planned highways that projects are selected primarily as
            a means to tackle the problem of accessibility of the national trunk highways within a certain
            planning period. Although this selection is not necessarily done within the framework of
            NTHS, medium term planning, five year planning or annual planning, these projects are
            designed to be compatible with the larger planning context. Such national trunk highways
            would serve to link provincial capital cities, regional economic centers and major population
            centers. The overriding importance placed on the benefits yielded by trunk roads results in no
            consideration of potential project impacts, both positive and negative, during project planning
            and prioritization.
   (x)      Rural road construction planning in China has an ambitious long-term goal of 3.7 million km
            of rural roads by 2020, including roads with bitumen (cement) pavement accessible to
            townships and administrative villages. This is intended to improve density and the service
            level of rural roads, forming a rural road network with a coherent geographic distribution and
            a high level of service, with county roads and village roads functioning as the base. Rural
            road construction funds inputted by the central government annually are more than CNY 20
            billion. Undoubtedly, improved planning and construction for rural roads would enhance the
            overall service level, particularly to effectively improve road service levels in widely dispersed
            rural areas. Nevertheless, there is no strict and definite requirement to coordinate with NTHS
            and expressway network planning. The focus of the rural road construction program is to
            construct bitumen roads to all administrative villages in eastern areas, to all townships and
            most administrative villages in central areas, and to most townships and administrative
            villages in western areas.
   (xi)     To promote more highway construction projects that directly influence poor areas, ADB
            generally emphasizes that projects with a significant poverty reduction function must be
            considered a priority for investment during the preparation of the country strategy, particularly
            for assessment of project preparation. However, an assessment of the driving role of project
            construction to the economy is not currently considered in combination with the social impact
            assessment, poverty impact assessment and/or resettlement plan assessment in the current
            planning methodology used in China for project preparation. Therefore, technical assistance
            projects are provided by ADB to formulate new assessment models for screening area-wide
            poverty reduction highway projects, which would modify previous approaches and methods
            used to evaluate impacts of highway projects on economic development and poverty. A
            project prioritization model, in the form of the area wide road network model (ARNM)
            developed in this TA study, will be discussed in detail in the following sections.




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                                                                                                                         Section A: Engineering and Economic Guidelines

                                                          Main Methods and Objectives of Highway Planning in China

  Project
                                                          Main Methods                                                                       Main Objectives                            Period
  Phase
            The goal of Highway Long-term Development Strategic Planning is to figure out policy development
            issues related to transportation. It is an important national strategic resource, which would play an
            essential role in the overall construction of a welfare society and the realization of modernization.
            NTHS planning, national highway system planning (NHS), national expressway network planning and
            rural road construction programs are subject to long-term strategic planning, which would be improved
            and enhanced with improved economy.
            NHS planning (1990-2020) is the earliest highway planning in China, as the National Highway Network, It would connect main cities and economic centers, almost
            including Capital Radiation Lines, north-south vertical lines and east-west horizontal lines, with a total  80% of townships and counties, which is an essential part of
            length of about 100,00km.                                                                                   the most basic trunk highway planning.
                                                                                                                        It would connect the Capital with other provincial capital
                                                                                                                        cities, all major cities with populations are over 1 million
            NTHS planning (1990-2020) is determined based on NHS and other relevant factors and the total length
                                                                                                                        people and with 93% of large cities with populations over
            is about 35,000km, consisting of twelve national trunk lines of five east-west highways and seven north-
                                                                                                                        500,000 persons. Total amount of cities to be connected
            south highways.
                                                                                                                        would exceed 200, covering about 0.6 billion persons,
  Strategic                                                                                                                                                                             20 – 30
                                                                                                                        accouting for 50% of total populations.
  Planning                                                                                                                                                                               years
            National Expressway Network planning (2005-2035) is the highest level planning in China highway
            network and is an important component in a comprehensive transportation system. As major trunk
            highways with political, economic and national defense implications, they would link up main large and Layout of national expressway network is to connecti all
            medium size cities, including national and regional economic centers, transport centers and important       cities with populations over 200,000 persons to form an
            export ports. Their main purposes are to carry rapid passenger and freight transport between regions, efficient transport network.
            provinces and cities, provide safe, comfortable, effective and sustainable services for social production
            and living and provide rapid transport warranty for such emergency as natural disasters.
            Rural roads, an important element in China’s highway network, have large scale and wide coverage,
                                                                                                                        The overall objective of rural road construction is access to
            account for more than 75% of total road network mileage. They connect wide spread counties,
                                                                                                                        the townships and administrative villages which have certain
            townships and villages and provide direct services to agricultural production, rural economic
                                                                                                                        conditions shall have access to bitumen (cement) pavement
            development and farmer transport, which is one of fundamental conditions to solve problems facing
                                                                                                                        roads, forming a rural road network with a relatively high
            agriculture, rural areas and farmers.
                                                                                                                        service level, making more rapid, safe and comfortable travel
            The rural road construction program (2005-2025) is also an important component in national long-term
                                                                                                                        for farmers to encourage improvements in living standards.
            development strategy.
 Long-term Study scope and main contents of highway long-term planning are the same as those for strategic                                                                              10 – 20
  Planning planning, but with more detailed objectives and approaches.                                                                                                                   years
  Medium-
            Main study points are to determine major highway corridor projects based on strategic planning and                                                                          5 – 10
    term                                                                                                                To determine corridor projects to link major trunk corridors.
            long-term planning.                                                                                                                                                         years
  Planning
            Transport demands within planning period would be estimated according to national five-year socio- Based on availability of funds, the projects in priority would
 Five-year
            economic development plan. Based on requirements of road network planning, project planning list to be listed in national five-year plan. Accordingly, project              5 years
    Plan
            be implemented in next five years would be screened out.                                                    preparation work would commence.
            The specific implementation schedule and national financial arrangement would be determined
Annual Plan according to five-year plan, project preparation (completion and approval of feasibility study report), and
            annual fund arrangements.




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                                                        Section A: Engineering and Economic Guidelines


MODIFICATION OF TRANSPORT PLANNING GUIDELINES (ARNM)

   (xii)     To promote more highway construction projects that directly influence poor areas, ADB
             generally emphasizes that projects with a significant poverty reduction function must be
             considered a priority for investment during the preparation of the country strategy, particularly
             for assessment of project preparation. However, an assessment of the driving role of project
             construction to the economy is not currently considered in combination with the social impact
             assessment, poverty impact assessment and/or resettlement plan assessment in the current
             planning methodology used in China for project preparation. Therefore, technical assistance
             projects are provided by ADB to formulate new assessment models for screening area-wide
             poverty reduction highway projects, which would modify previous approaches and methods
             used to evaluate impacts of highway projects on economic development and poverty. A
             project prioritization model, in the form of the area wide road network model (ARNM)
             developed in this TA study, will be discussed in detail in the following sections.
   (xiii)    To expedite infrastructure construction in poor areas, the transport authority of China will
             factor the povery alleviation performance of highway construction projects during the process
             of road network planning and the preparation of a five-year plan for highway construction.
             The goal is to ensure that priority is given to highway construction projects with maximum
             regional economic benefits as well as maximum poverty reduction effects.
   (xiv)     The ARNM, would be helpful in planning rural road networks and identifying project
             implementation prioritization in five-year plans, which could improve the current methodology
             used for project prioritization.
   (xv)      The ARNM, which takes the entire area road network as the study scope, is particularly
             suited to medium- and long-term project planning and construction studies within the context
             of the regional road network. The model would provide effective assistance in project
             selection, helping to weigh trade-offs between social benefits and poverty reduction within the
             context of investment restraints determined for a given area in its five year plan. Additionally,
             it could assess the impacts of an emphasis on overall project benefits versus an emphasis on
             benefits accrued to the poor in investment proposals, and thus, it could help decision makers
             to make quantitative decisions according to both poverty reduction goals and overall
             economic development goals.

   Foundation of ARNM Operation

   (xvi)     Generally, the total construction scale or total investment scale for future highway
             construction would need to be determined by decision makers on a case-by-case basis,
             specific to the region in question. In addition, these projects should be planned according to
             regional priorities. These priorities may be subject to change as the project evolves, however
             an initial prioritization will enable efficient implementation.
   (xvii)    Relevant traffic data from study roads, as well as specific poverty indicators from the affected
             area must be collected per the approaches developed in in these guidelines to form the basic
             foundation of the ARNM. This may be accomplished through specific methods highlighted in
             the ARNM as well as standard survey methodology.

   Traffic

   (xviii)   The primary activities of the traffic survey would be to review and understand long-distance
             thru traffic and short-distance local traffic on each surveyed road in the area in question,
             since the development level of local traffic is a key assessment indicator on aspects of
             improving local economic development and reducing poverty incidence. Therefore, more
             attention shall be paid to interviews and the investigation of the origins and destinations of
             vehicles during the regular traffic survey.
   (xix)     Considering that most traffic on local roads consists of tractors and motorcycles, for which
             operation costs could be reduced as a result of rehabilitation of local roads, operational cost
             savings for these vehicles would be an important component of social benefits for the project


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                in question. Furthermore, reduction of vehicle operating cost would directly alleviate the
                economic burden assumed by road users in poor areas, which would enhance poverty
                reduction. Hence, motorcycles, slow-moving motorized vehicles such as tractors and non-
                motorized vehicles shall also be surveyed. Vehicle types to be surveyed are listed in following
                table.

                                  Vehicle Type Categories in Traffic Survey

          No.                Vehicle Type                  No.                        Vehicle Type
           1                      Car                       7                  Articulated Truck or Trailer
           2                    Minibus                     8                          Motorcycle
           3                     Bus                        9                            Tractor
           4                  Light Truck                  10                  Livestock Powered Vehicle
           5                 Medium Truck                  11                            Bicycle
           6                 Heavy Truck                   12                            Others


   Cost and Benefit of Construction Project

   (xx)         An essential factor to examine in project assessment is to construction and operation costs of
                the project, as well as benefits produced by project completion. The main purpose of these
                Guidelines is to review social and poverty reduction benefits of area wide road construction
                projects, therefore, only economic analysis other than financial analysis would be conducted.

                Costs of Construction Project

   (xxi)        Construction costs are divided into two categories; construction and operation costs, and
                road user costs. These costs include land acquisition expenses and engineering construction
                costs of any highway construction projects. Operation and management costs include both
                routine maintenance expenses and heavy maintenance expenses.
   (xxii)       Road user costs include time costs and travel costs by mileage and by vehicle type, which
                could be summarized as follows for the purposes of analysis and calculation:
                • Vehicle operation costs: including fuel cost, tyre fee, vehicle depreciation and salaries of
                    vehicle operator and crews;
                • Time costs of passengers and cargo: refers to time costs for passenger on travel and
                    cargo in hauling ;
                • Toll charges; and
                • Losses resulting from traffic accidents: including personal injury and death, cargo
                    spoilage and vehicle loss, etc.

                Benefits of Construction Project

                                                             (xxiii)   Benefits accrued to road users refer to
                                                                       the direct benefits felt by users after
                                                                       construction or rehabilitation with
                                                                       improvements to road class and saving
                                                                       of VOC.
                                                             (xxiv)    As shown in the figure on the left, if no
                                                                       upgrade or rehabilitation is carried out
                                                                       on existing roads, increased traffic
                                                                       would lead to severe congestion, thus
                                                                       the VOC and travel time would increase,
                                                                       increasing overall travel time. However,
                                                                       if upgrades or rehabilitation are carried



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            out, the road capacity and service level would be improved and VOC reduced significantly.
            This kind of cost savings is the benefit to road user.

   Investment Assessment Model for Construction Projects

   (xxv)   The main objective of this model is to determine maximum economic benefits under a
           particular investment scale. If road capacity could be improved and operating costs reduced,
           in conjunction with increased traffic flow as a result of upgrade or rehabilitation, a reduction in
           transport costs may be seen as a result of the proposed project. Conversely, if no upgrade or
           rehabilitation is carried out, road users may be subject to negative impacts, due to increased
           traffic, decreased service levels and rising transport costs. Potential increases in transport
           costs may force vehicle operators to choose alternate routes that may have a lower
           associated cost. Based on the total investment scale, the selection of construction projects
           may affect route selection in the area road network, which may result in varying impacts to
           regional economic development and poverty reduction.
   (xxvi) For certain implementation schemes for construction projects, the impact on local traffic
           routes would be greater than those to the through traffic route. Therefore, the benefit analysis
           would calculate local traffic and through traffic separately to estimate overall network
           economic benefits and poverty reduction benefits separately.
   (xxvii) A detailed model for benefit calculation is attached in the appendix of these Guidelines.

   Poverty Impact

   (xxviii) For each local road improvement project, ARNM will calculate the benefits resulting from
            reduced transport costs by vehicle type. The results of the traffic survey would be used to
            calculate the proportion of benefits accrued to road users, distinguishing between the impact
            on the poor and very poor users. The share of benefits accrued to poor beneficiaries as a
            result of total benefits from project implementation could be used to assess the degree of
            poverty reduction using a poverty impact ratio (PIR).
   (xxix) A model formula used to estimate PIR is listed in the appendix of these Guidelines.


STATUS QUO OF FEASIBILITY STUDY FOR HIGHWAY PROJECT

   Development Course

   (xxx)    Feasibility study methodology has improved gradually since the 1970s. Relevant compilation
            methods and guidelines were issued sequentially by the transport authority and other
            departments. These guidelines are introduced briefly in the following sections.

            Proposed Method for Feasibility Study for Highway Construction, MOC, 1982

   (xxxi)   The feasibility study work for the highway construction project was begun at the end of the
            1970s in China. In 1982, the Proposed Method for Highway Construction Feasibility
            Studies was promulgated by MOC, which provided basic regulations on the appropriate
            objectives for, and essential components of, feasibility studies for highway construction
            projects. Instructed by this Method, more than one hundred feasibility study reports were
            finalized, significant economic benefits were obtained, abundant experiences were
            accumulated and more professional feasibility study groups were trained.

            Methodology and Parameters of Economic Evaluation for Construction Projects
            (second edition), State Planning Commission (SPC) and Ministry of Construction, 1994

   (xxxii) The first edition of this general-purpose document was promulgated by the SPC in 1987 for
           trial, and then widely applied on a national level. These economic evaluation guidelines have
           proved to be both effective and instructional for planning and design units and for engineering


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             consulting companies attempting to carry out economic evaluation and project investment
             evaluations. They are also an important foundation upon which planning departments may
             base approval of project proposals and feasibility studies and they may also aid financial
             agencies in their loan approval decision process.
   (xxxiii) After the release of the first edition, the document was complemented, modified and released
             as the Second Edition in April 1993 by the SPC and Ministry of Construction. The
             modifications in the Second Edition reflect studies and research performed as a result of
             feedback from the first edition, covering issues such as economic institutional reform. The
             Second Edition was in compliance with economic development and reform in financial and
             taxation sectors of the time. It also improved the accessibility, scientific soundness, and
             practicality of the document, enabling them to be applied by a range of implementers across
             various industries. In consideration of the increase seen in joint-venture investment projects,
             a special economic evaluation method for this kind of investment project was provided in the
             Second Edition.
   (xxxiv) At present, the market economy has shown rapid development in China. Large changes have
             occurred in evaluation parameters and pricing systems related to construction projects.
             Under these new economic conditions, it is necessary to review and adjust parameters
             concerning economic evaluation. Currently, modification to the Second Edition is being
             organized by the Ministry of Construction, and the Third Edition is expected to be issued
             shortly.
   (xxxv) This general-purpose document provides relevant regulations for various industries in China
             on how to carry out feasibility studies. It also provides information and guidance regarding
             significant economic parameters, such as shadow pricing of materials, etc.
   (xxxvi) In this document, the characteristics of economic evaluation for transport projects are
             discussed in a separate chapter, which addresses specific economic evaluation methods for
             transport projects in detail. Transport projects include highway, railway, waterway, aviation
             and pipeline projects which are all infrastructure projects with public benefits. The main
             characteristic of these projects is the provision of transport services for the whole society, as
             opposed to products designed for a particular demographic. Therefore, evaluation methods
             for them should not only follow general principles and basic methods of economic evaluation
             for common construction projects, but also possess special features which are defined in
             these guidelines.
   (xxxvii) According to the guidelines, economic evaluation for transport projects shall be done at the
             national level. For those transport projects which require operation income, a financial
             evaluation is needed to analyze and calculate financial profitability and solvency of the
             project. Generally, the method of comparison between “With” and “Without” project
             forecasts would be adopted in the national economic evaluation process for transport
             projects.
   (xxxviii) Some national economic benefits could be easily quantified while some are more difficult. In
             the document, several economic benefits which can be quantified are defined as: 1. benefits
             resulting from transport costs savings; 2. benefits from transport time savings; 3. benefits
             from congestion reduction; 4. benefits from safety improvements; 5. benefits from transport
             quality improvements; and 6. benefits from package costs savings. Also, corresponding
             calculation formulae are provided in the document. In addition to the above-described
             benefits, the implementation of the project could also enhance living standards, improve the
             social, economic and natural environments, create new employment opportunities, and
             promote regional economic development in project areas. For those benefits that are difficult
             to quantify, relevant qualitative descriptions shall be undertaken.
   (xxxix) In recent years, the Government of China has utilized loans from WB and ADB for
             construction of highway, railway and other infrastructure projects. According to the stated
             requirements of these lending agencies for project loans, generally, a quantitative calculation
             must be carried out to estimate impacts of project implementation to poor populations in
             project areas. Some commonly used quantitative calculation methods are introduced to
             estimate benefits that accrue to the poor as a result of implementation of the project.
             However, in the future, more stringent requirements will be put forward for the assessment of
             various impacts resulting from project implementation, especially environmental, social, and



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               resettlement impacts, as well as impacts on the poor, which require quantitative assessment
               to evaluate social benefits. These guidelines, based on experiences from loan project
               assessments for international financing projects in recent years, particularly from the ADB,
               will provide relevant methodology and guidelines for social and poverty assessments, to
               improve current methods of calculating highway project benefits, and enhance the technical
               soundness and assessment accuracy of various benefits resulting from the project
               implementation which are not easily quantified.

               Compilation Method of Feasibility Study Report for Waterway and Highway
               Construction Projects, MOC, 1988

    (xl)       To standardize the compilation of feasibility study reports, MOC, based on an overview of
               feasibility study works for highway projects in each province, issued Compilation Method of
               Feasibility Study Report for Waterway and Highway Construction Projects in August 1988.
               The contents are listed in the following table.

                Main Contents of Pre-Feasibility Study for Highway Construction Project

                                                   Required Study Contents                                  Remarks

Chapter I              1.   Foundation of Study Report Preparation
Overview               2.   Brief Introduction of Study Process
                       3.   Summarization of Main Study Results

Chapter II             1.   Technical Condition, Traffic and Congestion of Existing Road
Evaluation of Status   2.   Natural Conditions Such as Terrain, Geology, Hydrology and Climate Along
Quo and                     Roadside, Distribution of Building Materials and Exploitation Potential and
Development                 Impact on Engineering
Environment            3.   Impact on Residential Areas, Major Buildings and Layout of Agricultural and
                            Forest Facilities to Highway Construction, as well as Acquisition Difficulty
                       4.   Linkages between Proposed Project with Adjacent Highway, Railway,
                            Waterway and Aviation

Chapter III            1.   Analysis of Impact of Economic Development in Project Area to Passenger and
Transport                   Freight Transport and Traffic
Development            2.   Review and Forecast of Impacts of Future Economic Development and Road
Forecast and                Network Development on Traffic and Transport Volume to be Attracted by the
Construction                Proposed Project and Their Development Level
Necessity              3.   Address Construction Necessity Based on Forecast of Transport Volume and
                            Traffic, as well as Review of the Condition of the Existing Road and Regional
                            Environment

Chapter IV             1.   Preliminary Selection of Route Alignment and Main Control Points According to
Construction Scale,         Development Environment, Forecast and Construction Condition
Standard and           2.   Review and Recommend Construction Scale and Standards Based on Traffic
Preliminary Scheme          Development Trend and Current Congestion
                       3.   Recommend Proposed Construction Scheme and Relevant Engineering
                            Quantities
                       4.   Comments on Implementation of Construction Project

Chapter V              1.   Investment Estimate
Investment Estimate    2.   Comments on Fund Raising
and Fund Raising

Chapter VI             Provide preliminary economic evaluation indicators based          on   Economic
Economic               Evaluation Method for Highway Construction Projects
Evaluation

Chapter VII            1.   Main Issues
Issues and             2.   Main Recommendations for Engineering Design and Implementation
Recommendations




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                  Main Contents of Feasibility Study for Highway Construction Project
                                                    Required Study Contents                                 Remarks
Chapter I                 1.  Foundation and Background of Assignment: Outline of Development
Overview                      Course, Relevant Planning and Proposals
                          2. Study Scope: Outline of Main Study Contents
                          3. Main Study Results: Construction Necessities, Traffic Forecast Results,
                              Construction Scale, Techncial Standard, Route Alignment and Main
                              Control Points, Investment Estimate, Total Labor and Main Building
                              Material Quantities, Construction Arrangement, Economic evaluation
                              Results, etc
                          4. Main Issues and Recommendations
Chapter II                1. Function in Transport Network: Status Quo of Transport Network in the
Outline and Issues of         Region, Outline of Highway Network, Role of Proposed Project in
Existing Road                 Transport Network
                          2. Main Issues: Analysis of Existing Highway Technical Conditions and
                              Relevant Adaptability
Chapter III               1. Economic Characteristics of Project Area: Development Trend of Structure
Development Forecast          and Layout of Regional Economic Departments, as well as those for
ofTransport Volume and        Regional Transport
Traffic Volume            2. Relations between Highway Transport Volume and Traffic Volume with
                              Regional Economic Structure, Economic Indicators and other Factors
                              (such as road maintenance revenue, etc)
                          3. Traffic Survey: Traffic Volume, OD Survey of Vehicles, Vehicle Transport
                              Indicators (including average tonnage, carrying ratio, speed, fuel
                              consumption, transport cost, etc)
                          4. Forecast of Transport Volume and Traffic Volume: Determination of
                              Increasing Ratio of Transport and Traffic Volume in Base Year and
                              Forecast of Transport and Traffic Volume, as well as Traffic of Interchange
                              for Proposed Project
Chapter IV                1. Evaluation of Construction Scale
Construction Scale and    2. Route Length, Technical Standard and Other Facilities of Proposed
Standard                      Alternative
                          3. Main Technical Indicators
Chapter V                 1. Geographic Location, Terrain, Geological, Climate and Hydraulic
Construction Conditions       Conditions and Analysis of Impacts to Engineering Schemes, Construction
and Alternatives              Conditions and Construction Costs
                          2. Sources and Delivery of Building Materials: Quality, Quantity, Average
                              Transport Distance and Modes for Building Materials
                          3. Social Environment Analysis: Restriction and Acquisition Difficulty of
                              Roadside Residential Points, Structures and Agricultural and Forest Layout
                              to Route Selection, as well as Linkages with Adjacent Highway, Railway,
                              Waterway and Aviation
                          4. Alternatives: Each Alternative, Main Technical and Economic Indicators,
                              Background, Comments of Relevant Units, Technical and Economic
                              Evaluation for Each Alternative, Evaluation to Proposed Alternative
                          5. Route Alignment and Main Control Points of Proposed Alternative
                          6. Evaluation of Impacts of Construction Project to Environmental Protection
Chapter VI                1. Main Engineering Quantities
Investment Estimate       2. Land Acquisitions and Quantities
and Fund Raising          3. Investment Estimate
                          4. Comments on Fund Raising
Chapter VII               1. Analysis of Construction Conditions and Features, Review of Key
Implementation                Components which Control Progress, Quality and Cost, Provision of
Scenario                      Appropriate Construction Scheme
                          2. Construction Arrangement Abided by Principle of Construction by Phases,
                              Open to Traffic by Sections to Improve Efficiency
                          3. Training for Managerial and Technical Staffs of Expressway
Chapter VIII              Based on Economic Evaluation Method for Highway Construction Projects
Economic Evaluation
Chapter IX                1.   Main Issues
Issues and                2.   Recommendations of Engineering Design and Implementation
Recommendations




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   (xli)      The promulgation of Compilation Method of Feasibility Study Report for Waterway and
              Highway Construction Projects significantly improved the overall level of quality seen in
              feasibility study reports for highway construction. This, in turn, provided a methodological
              foundation for project selection and approval, as well as a basis for rapid highway
              development in the 1990s.
   (xlii)     However, from a development viewpoint, some requirements and principles articulated for
              pre-feasibility and feasibility studies rapidly became outdated and could not adequately
              address current development requirements of the road network. For instance, the principle of
              “Construction by Phases, Open to Traffic by Sections to Improve Efficiency” provided in
              Chapter VII did not apply well to the current situation of more developed road network and to
              the accompanying road safety principles. In order to realize the full potential overall benefits,
              construction projects should be completed simultaneously, which may exert full network
              benefits and achieve the principle of maximum benefits. In this practice, construction by
              phases and sections has less funcitonality, and does not allow for the provision of continuous
              transport services, with particularly unfavorable impacts on traffic organization and road
              safety.

              Proposed Method of Traffic Forecast for Highway Construction Project, MOC, 1988

   (xliii)    It was the Proposed Method of Traffic Forecast for Highway Construction Projects and the
              appendix of the Compilation Method of Feasibility Study Report for Waterway and Highway
              Construction Projects which first provided the basic methods and surveys to be undertaken in
              traffic demand forecasting for highway construction projects. This resulted in the adoption of
              standardized basic methods for traffic forecast in China. Compared to the initial feasibility
              studies for highway construction produced, the technical level of traffic forecasting in China
              has been developed to a relatively mature stage.
   (xliv)     There are a total of ten items in the Proposed Method, briefly described below.
   (xlv)      The first item states that total traffic demand is a reflection of socio-economic development
              and technological development. Also, it states that traffic forecast is an important element in a
              feasibility study and one of the main foundations for the determination of appropriate
              technical standards, the determination of a suitable engineering scale and the undertaking an
              economic evaluation.
   (xlvi)     The second item provides that traffic forecasts shall be based on traffic surveys in previous
              years and vehicle OD survey material and shall adopt universal forecast techniques and
              methods in the feasibility study.
   (xlvii)    The third item provides a detailed list of items to be surveyed for a traffic forecast.
   (xlviii)   The fourth item identifies basic steps of traffic forecasting, as follows:
              • To analyze previous basic materials;
              • To review the interaction between traffic and the economy based on current available
                   materials and select an appropriate forecast method;
              • To select the appropriate forecast model and determine relevant parameters;
              • To carry out calculation with the selected method and model; and
              • To summarize, compare, analyze and estimate various forecast results to determine
                   future traffic volume.
   (xlix)     The fifth item recommends two basic methods for traffic forecast:
              • Base-determined forecast method: this method forecasts traffic directly from change
                   regulation of traffic in past years; and
              • Indicator-determined forecast method: this method forecasts traffic based on relations
                   between traffic and other economic indicators.
   (l)        Except for above recommended methods, the Proposed Method is also allowed for other
              methods which shall be described in the report.
   (li)       To facilitate implementation of this Proposed Method, the Feasibility Study Guideline for
              Highway Construction Projects prepared by Highway Planning and Design Institute
              (HPDI), was issued in 1991 and highlighted the “four stage” traffic forecast method,



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             commonly used across the world, except as an introduction to the above two methods. By
             conducting many training courses, this four-stage method became the predominant method
             used for traffic forecasting in feasibility studies.
   (lii)     The sixth item states that a vehicle traffic forecast is only necessary for expressway and first
             class highways. For highway below second class, traffic volume of vehicle and slow-moving
             vehicle (such as tractors, bicycles and livestock-powered vehicles, etc.) shall be forecasted
             separately due to this combined situation.
   (liii)    The seventh item provides a traffic forecast period of approximately twenty years. For toll
             roads, the forecast period could be extended. However, the forecasted traffic volume shall
             not exceed the road capacity.
   (liv)     According to the latest Technical Standards for Highway Engineering (JTGB 01-2003)
             promulgated in 2003, the forecast period for highway construction projects has been
             adjusted. For expressways and first class highways which perform trunk line functions, the
             forecast period would be twenty years. For first class highways which perform distributing
             functions and second and third class highways, the forecast period would be fifteen years.
             For fourth class highways, the forecast period could be determined on a case-by-case basis.
             Such regulations are compatible with the real needs and requirements of various classes of
             highways.
   (lv)      The eighth item provides that forecasted traffic for future periods shall consist of trend traffic,
             diverted traffic and induced traffic, which shall be forecasted separately.
   (lvi)     The ninth item provides that forecast of the traffic increase ratio shall be carried out in a
             deliberate manner and iterative computations with many methods shall be conducted during
             the determination process to ensure the maximum level of accuracy possible.
   (lvii)    The tenth item provides the contents of a traffic forecast regulated in this Proposed Method,
             which must be followed in the engineering feasibility study stage for expressways, as well as
             first and second highway construction projects. A simplified method could be adopted for pre-
             feasibility and engineering feasibility studies of third and fourth class highway projects.
   (lviii)   Additionally, common mathematic models for traffic forecasting are provided in the Proposed
             Method for reference.

             Method of Economic Evaluation for Highway Construction Project, MOC, 1988

   (lix)     The Economic Evaluation Method for Highway Construction Projects, another appendix
             of Compilation Method of Feasibility Study Report for Waterway and Highway
             Construction Projects, first articulated the main requirements of economic evaluations and
             basic methods for benefits calculation of highway construction projects.
   (lx)      There are thirty-one items described in four sections of this Method.
   (lxi)     The first section is General, and consists of eleven items. It emphasizes that economic
             evaluation is an important part of any feasibility study. The construction costs and benefits
             shall be calculated based on results of traffic forecasts and engineering technical studies.
             The economic soundness of the project shall be analyzed, reviewed and evaluated via
             comparisons between various alternatives to provide the foundation for decision making.
   (lxii)    Furthermore, it emphasizes that economic evaluation must be carried out for highway
             construction projects. For toll road projects, a financial analysis shall also be carried out to
             calculate their solvency. The principle of consistent calculation calibrations for costs and
             benefits shall be abided by in economic evaluations. In calculating project benefits, a
             comparison of costs and benefits between “With” and “Without” project situations shall be
             undertaken. It provides for relevant attention to be paid to impacts of increased traffic
             congestion and mixed traffic volume on the same class road to relevant costs. This means
             that the minimum input approach shall be adopted under the situation of a “Without” project
             to maintain the existing road at a certain service level.
   (lxiii)   The second section includes eighteen items, which mainly focus on the specific methods to
             be adopted in economic evaluations. The evaluation of a highway project is intended to be
             based primarily on a comparison between two elements, construction and operation costs
             inputted by the project, and benefits obtained by all road users.




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   (lxiv)     In this section, benefits accrued to road users are divided into ten categories and
              corresponding calculation formulae are provided respectively.
              • Benefits from the reduction of freight transport cost due to highway construction or
                  rehabilitation (upgrade);
              • Benefits from the reduction of passenger transport cost due to highway construction or
                  rehabilitation (upgrade);
              • Benefits from the reduction of freight transport costs due to the reduction of traffic
                  congestion on existing road as a result of project highway construction;
              • Benefits from the reduction of passenger transport costs due to the reduction of traffic
                  congestion on existing road as a result of project highway construction;
              • Benefits from the reduction of freight transport cost due to shortened travel mileage as a
                  result of a rehabilitation project;
              • Benefits from the reduction of passenger transport cost due to shortened travel mileage
                  as a result of a rehabilitation project;
              • Benefits from the passenger time savings due to the increase of travel speed;
              • Benefits from the freight time savings due to the increase of travel speed;
              • Benefits from the reduction of traffic accidents due to rehabilitation; and
              • Benefits from the reduction of freight loss due to rehabilitation.
   (lxv)      The above benefit categories accrued by highway construction and rehabilitation projects
              could be used to calculate benefits and evaluate the effects of construction projects
              accurately. However, issues of more detailed divisions and multi-counting, such as
              unavoidable repetitive calculations in benefits from mileage shortening and benefits from
              transport costs savings, would result in an overestimate of benefits produced by a
              construction project.
   (lxvi)     According to the Prioritization Study of Highway Investments and Improving Feasibility
              Study Methodologies (briefly as PPK Method) issued in 1996 and Discussion Paper of the
              Latest Studies on Economic Evaluation by HPDI in 1996, benefits accrued by highway
              construction projects are divided into four categories, i.e. benefits from reduction of
              passenger VOC, benefits from reduction of freight VOC, passenger time savings value, and
              benefits from the reduction of traffic accidents. Also, benefits from time savings for freight
              transport could be estimated if the cargo carried by the project in question has a high value
              and the improvement of road capacity is large. This new division method allows for a more
              accurate and scientific calculation and avoids repetitive computation of benefits, which plays
              an important role in objective benefits evaluation.

              Technical and Economic Indicators for Highway Engineering, HPDI, 1990

   (lxvii)    Speed-flow relations and VOC for various classes of roads were studied and developed by
              the HPDI study team based on large amounts of materials collected from field surveys.
              These field surveys were applied in a wide range of feasibility studies for highways
              throughout China.
   (lxviii)   Since there were few expressways under construction, limited basic data was accumulated.
              At the time this document was completed, the speed-flow relations and VOC formulae which
              are mainly applicable to low class highways provided in the Document were not universally
              applicable to expressway projects. Therefore, HPDI, cooperated with PPK Company during
              1994-1996, undertook much analysis and field work for various classes of roads, especially
              expressways, to improve the models in the Documents. These study outcomes were
              summarized in Prioritization Study of Highway Investments and Improving Feasibility
              Study Methodologies.

              Feasibility Study Guidelines for Highway Construction, 1991

   (lxix)     After promulgation of the Compilation Method of Feasibility Study Report for Waterway
              and Highway Construction Projects by MOC in June 1988, the highway design units in
              each province began to follow this method to prepare feasibility study reports for highway



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            projects. In practice, however, this marked the first time that most units undertook feasibility
            study activities. As a result, they encountered many issues as they learned more about the
            method. To address these needs and improve understanding of this Method, several training
            courses were carried out by HPDI beginning in 1989. In 1991, Feasibility Study Guidelines
            for Highway Construction was issued by HPDI based on experiences from the training
            courses. Although this Guideline is not an official document, the methods provided in it have
            been adopted in the nation.
   (lxx)    There are seven total chapters in this Guideline, as described below.
   (lxxi) Chapter I, Overview, mainly discusses the concept and purpose of a feasibility study, its
            main requirements and characteristics and its role and function in project construction,
            indicating that a feasibility study is the foundation for investment decision-making and the
            preparation of a project proposal, for applying for bank loans, for carrying out preliminary
            design and also the foundation for adopting new technologies and equipment. It also
            discusses the working stages of a feasibility study (i.e. pre-feasibility study and engineering
            feasibility study) and addresses, in detail, distinct requirements and differences in different
            working stages. At the end of this chapter, the main contents and preparation steps of
            feasibility studies for highway construction projects, as well as the situation and main issues
            of feasibility studies at the end of the 1980’s and beginning of the 1990’s in China are
            introduced.
   (lxxii) Since 1981, the feasibility study has been an official requirement of capital construction
            procedures, per the Chinese Government. Through 1990, after almost ten years of
            development, positive evaluations were conducted on the topic of feasibility studies. Based
            on lessons learned from international experiences with feasibility studies, as well as in-depth
            research into Chinese practices, some parameters, such as preparation methods for
            feasibility study reports, economic evaluation methods, and traffic forecast methods were
            developed and modified. However, many outstanding issues regarding feasibility studies
            were discovered in this period, including:
            • Flaws in the basic materials necessary for feasibility studies, due to imperfect statistical
                 systems and inconsistent statistical dimension of time;
            • Flawed theories developed for feasibility studies, particularly for economic evaluation,
                 transport and traffic volume forecasts and other economic analyses, which is a key
                 problem influencing feasibility study level;
            • Unmatched and incomplete parameters necessary for feasibility studies. The
                 development and modification of some parameters shall take considerable resources,
                 and will require indepth analyses and investigations;
            • Engineering technicians are the primary staff involved in conducting feasibility studies.
                 While they may have abundant experience in engineering and technical expertise, they
                 tend to have relatively insufficient knowledge of economics; and
            • The feasibility study reports that some highway construction projects have become
                 “approval” study reports, lacking objectivity and fairness.
   (lxxiii) Chapter II, Socio-Economic Survey, Analysis and Forecast, mainly discusses scope and
            contents of socio-economic surveys in detail. Direct and indirectly influenced areas are
            identified based on the estimated zone of influence of the project. The surveys to be carried
            out in directly influenced areas are more detailed than those in the indirectly influenced areas.
            The same is true for the economic analysis and forecast.
   (lxxiv) Socio-economic surveys mainly focus on populations, resources and economic development
            in the project area.
   (lxxv) The goal of socio-economic analysis is to study socio-economic activities, their processes,
            and relevant results using collected socio-economic materials to analyze stimulative and/or
            restraining factors impacting socio-economic development, to understand the resulting
            development trends, and carry out socio-economic forecasts.
   (lxxvi) Socio-economic forecasting is also intended to analyze the current status of economic
            development and its implied regulation, based on sorting and analyses of collected materials.
            In addition, factors which influence economic development must be reviewed, and forecasts
            must be carried out while incorporating the potential effects of various long and short term
            plans developed by various levels of the government. Generally, five-year and/or ten-year


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               development plans would be developed by the government at each level, although the
               assessment period for a highway project would remain twenty years. Therefore, the socio-
               economic development shall be analyzed and forecasted to provide a foundation for traffic
               demand forecasts in the project area.
   (lxxvii)    The socio-economic survey, analysis, and forecast provided in this Guideline are primarily
               relevant to macroeconomic phenomena, with little attention paid to microeconomic
               phenomena, particularly to the severity of poverty and the specific impact on poor populations
               in project areas. Due to the lack of a detailed survey and review related to poverty impact and
               micro-social aspects, no specific analysis and forecast could be conducted for poverty
               reduction upon project completion in the economic evaluation materials provided in this
               Guideline.
   (lxxviii)   Chapter III, Traffic Survey, Analysis and Forecast, mainly discusses the purpose, method
               and scope of traffic surveys, particularly the OD survey for motorized vehicles. Additionally,
               basic methods used for traffic analysis and traffic forecasting based on the results of traffic
               analysis are discussed in this Chapter.
   (lxxix)     This Guideline first summarizes typical international methods and technologies used for traffic
               survey, analysis and forecast. These methods and technologies play a fundamental role in
               instructing practitioners who are involved in the preparation of feasibility study reports to carry
               out traffic forecasts in a scientific way. They also provide a strong and scientific foundation
               for decision making on issues such as technical standards, construction scale, and
               construction priorities for highway construction projects.
   (lxxx)      This Chapter also addresses the typical traffic forecast “four-stage” method, which was
               introduced in detail, and then became a universally-adopted method of traffic forecasting for
               highway construction in China. It currently plays an important role in promoting traffic forecast
               levels in feasibility study reports in China.
   (lxxxi)     Since the promulgation of the Compilation Method of Feasibility Study Reports for Waterway
               and Highway Construction Projects (1988) and the Feasibility Study Guidelines for Highway
               Construction (1991), the traffic forecast works in feasibility studies for highway construction
               basically follow the methods provided in the Method and Guidelines, indicating that traffic
               forecast work is moving toward a steady development stage.
   (lxxxii)    Chapter IV, Review of Construction Conditions and Construction Scheme, mainly
               discusses the purpose of the review and study of engineering schemes, as well as the tasks
               required to adequately perform such a review and study. It also provides specific
               requirements for pre-feasibility studies and engineering feasibility studies.
   (lxxxiii)   The purpose of the engineering portion of a feasibility study for highway construction shall,
               based on a combination of quantitative and qualitative methods, address construction
               conditions and environmental considerations, review construction standards, scale, and
               arrangements step by step and recommend a proposed scheme to provide comments to
               assist in decision making by upper level government officials, and provide a foundation for
               the next stage of work.
   (lxxxiv)    The tasks required in the engineering part of a feasibility study include: 1. a review of
               construction conditions and potential environmental issues, collection of comments from
               various parties, analysis of favorable and unfavorable conditions, and a determination of the
               feasibility of the project implementation plan, primarily from a technical viewpoint; 2. a review
               of major technical schemes, including a comparison and evaluation, and formulation of
               recommendations; 3. an analysis of primary technical difficulties and provision of necessary
               arrangements for major feasibility topics or import of important technology and equipment;
               and 4. provision of construction engineering quantities and an implementation scenario for
               the investment estimate, as well as main materials and labor quantities.
   (lxxxv)     The section discussing the design of engineering schemes for highway construction projects
               in the feasibility study stage emphasizes the importance of overall design, particularly the
               designs for horizontal and longitudinal alignment of high class roads. This further stresses
               that the function and role of construction projects in the road network and in the project area
               shall be analyzed, reviewed and evaluated to provide information as to the adequate
               construction scale, technical standards and major technical schemes to ensure maximum
               exertion of its function, and ensure consistency between such key elements. Additionally, the



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              issue of driving safety is also addressed in the Guideline. It states that, under the
              precondition of satisfying current highway design specifications, relevant considerations shall
              be incorporated into the details of the cross section layout of the carriageway, standards for
              horizontal and longitudinal alignment, and also treatment of intersections, arrangement, type
              and quality of guard fence, class, roughness and anti-sliding resistance of pavement, surface
              drainage, dimension of signs, and type of median separator, among other elements.
   (lxxxvi) The Guidelines criticize an erroneous concept (that they belong to the preliminary design
              stage and are the responsibility of the practitioners completing the feasibility study at that
              time) used to consider overall design and designs for horizontal and longitudinal alignment.
              The importance of overall design in the engineering feasibility study stage must be
              emphasized in order to highlight the importance of in-depth review, accurately controlled
              investment scale and construction standards and avoidance of important changes in the
              engineering scheme. Furthermore, due to high driving speeds found on high grade roads, if
              the design of horizontal and longitudinal alignment in the engineering feasibility stage is
              unsuitable, it will not be possible to revise such design flaws in the preliminary design stage,
              which could result in hidden dangers for vehicle travel during the operation period. The
              Compilation Method of Feasibility Study Reports for Waterway and Highway
              Construction Projects (1988) or Feasibility Study Guidelines for Highway Construction
              (1991), both stipulate and emphasize that, for a high grade road, a proposed whole line
              scheme corresponding to horizontal alignment and longitudinal alignment shall be marked
              and reviewed on a 100,000:1 map in the engineering feasibility study stage to evaluate the
              soundness of coordination between horizontal and longitudinal alignment in the proposed
              schemes provided in the feasibility study report.
   (lxxxvii) To achieve an in-depth review of the alignment scheme, both the Method and Guideline
              stipulate that geological drilling investigations shall be carried out for road sections with
              complex hydraulic and geological conditions, and major structures such as large bridges and
              tunnels during the field survey, for the purpose of accurately estimating engineering
              quantities and costs. When necessary, the review and design works with the same depth as
              in preliminary design shall be undertaken for large structures.
   (lxxxviii) Due to the rapid development of expressway construction in China, the Chinese design and
              consulting industry has been rapidly accumulating practical experience in expressway design.
              In addition, the industry is also accumulating valuable experience in highway design.
              Generally, the studies on alignment design conducted as part of the larger feasibility study for
              highway construction basically follow the Compilation Method of Feasibility Study Reports for
              Waterway and Highway Construction Projects and other relevant design specifications, which
              meet feasibility study requirements and may provide a foundation for preliminary designs in
              the next stage.
   (lxxxix) Some factors that may prove operationally hazardous are often found during the process of
              evaluating the engineering scheme in feasibility study reports for expressway projects, even
              though those factors may conform to relevant highway design specifications. Such factors,
              which are often neglected, include driving speed difference over 20km for adjacent road
              sections with different design standards, inconsistency of the design speed of a bridge and
              tunnel with their approach lines, inadequate or nonexistant transition sections, improper
              arrangement of signs, marks, and safety guide facilities, inadequate distance between
              interchanges or lack of safety guide facilities between interchanges, poor consistency of
              design speed, lack of safety guide facilities for accelerating and decelerating lanes entering
              and exiting interchanges, and long distances between adjacent service areas or small areas
              of parking lots in service areas, which may result in vehicles frequently parking on auxiliary
              lanes in order to gain entrance.
   (xc)       One possible cause for the above deficiencies could be the relatively short time period
              allocated for the feasibility study. Engineering consulting staffs were not given sufficient time
              to carry out a proper in-depth study.
   (xci)      The transport authority in China has noticed such problems and has issued the Safety Audit
              Guidelines for Highway Projects that provides relevant regulations for those issues to
              avoid any design which, although compliant with current highway design specifications,
              produced conditions that are unfavorable to operational safety.



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   (xcii)  Chapter V, Investment Estimate, divides the investment estimate work in feasibility study
           into two stages; material collection and preparation of the investment estimate.
   (xciii) In this Chapter, the working contents of the first stage and the method and contents of
           material collection are discussed in detail. During the process of collecting relevant materials,
           documents related to the investment estimate issued by the MOC, Ministry of Construction
           and other departments must be collected, in addition to relevant supplementary explanations
           developed by local governments for the purpose of executing those mandatory regulations.
           Those supplementary explanations may serve as both supplements to mandatory regulations
           issued by MOC and other departments, and modifications to relevant indicators.
   (xciv) According to the Method of Investment Estimate Preparation for Highway Engineering
           issued by MOC, the preparation of investment estimate shall calculate construction costs in a
           rational manner based on quantities of materials and labors, based on ratios provided in the
           Estimate Indicators for Highway Engineering and Method of Investment Estimate
           Preparation for Highway Engineering and taking regulations in Method of Budgetary
           Estimate Preparation for Highway Engineering for reference.
   (xcv) The Guideline also indicates issues requiring particular attention during the preparation of the
           investment estimate, such as dynamic management for unit prices of engineering, material,
           and equipment. Base prices of indicators which have been promulgated could not be used
           as a foundation for the estimate and required adequate adjustment to estimate indicators for
           engineering in plateaus and other special areas, etc. Additionally, new unit price for materials
           and adjustments to some parameters may be issued by MOC and other departments to
           provide a basis for charging irregular construction costs, which shall be used to generate the
           investment estimate.
   (xcvi) Chapter VI, Economic Evaluation, discusses some basic concepts and principles to be
           used in economic evaluations for highway construction, including differences between
           economic evaluation and financial analysis, and methods to be adopted for them in a
           systematic way. Furthermore, the Guideline also discusses the determination of some typical
           parameters in economic evaluation.
   (xcvii) According to the Guideline, the following four principles shall be abided by for a good
           economic evaluation:
           • Consistent costs and benefits are essential to the Method. The scope division of costs
                and benefits in an economic evaluation for a highway construction project classifies all
                contributions to the national economy made by the project as benefits. Generally, only
                direct benefits are calculated in an evaluation. Costs incurred during construction and
                operation periods include construction costs, heavy maintenance expenses, other
                maintenance expenses, overhead and residual value (negative);
           • Comparison of “With” and “Without” project conditions must be included in the evaluation.
                The Guideline also discusses the reason why other methods (such as before and after
                studies) could not achieve an accurate calculation of net benefits for the construction
                project;
           • The same price shall be adopted in a given evaluation period. According to the Method
                and Parameters of Economic Evaluation for Construction Projects, issued by SPC
                in 1987, the same price shall be used in an evaluation period for domestic projects (i.e.
                the current price to be used for financial evaluation and the shadow price to be used for
                economic evaluation). The market price and shadow price in the first year of construction
                shall be used as benchmarks which shall not be changed in the economic evaluation
                period as well as in the financial evaluation period. If price rising would have significant
                impacts to project evaluation, it is suggested that sensitivity analysis on price increases
                be conducted to evaluate its impact to the project; and
           • The evaluation period must also be consistent. According to the Compilation Method of
                Feasibility Study Report for Waterway and Highway Construction Projects and
                Feasibility Study Guidelines for Highway Construction, different evaluation periods
                shall be used for different classes of roads. This is because of different life cycles for
                different classes of roads and the necessity of evaluations to be carried out within the life
                cycle. Generally, a 20-year evaluation period would be adopted for expressway and first
                class highway and such period could be shortened for other roads. Of course, the life


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                 cycle of a low class road could be extended as a result of reconstruction and
                 rehabilitation. Its evaluation period should then be extended accordingly.
   (xcviii) In this Chapter, the differences between economic evaluation and financial evaluation are
            discussed to facilitate a clear understanding of both methods and the determination of
            relevant parameters. The main purpose of the financial evaluation of a construction project is
            to analyze and estimate the project’s benefits and costs, review such financial situations as
            its profitability and solvency from a financial viewpoint, and carry out an evaluation of financial
            feasibility based on the current national financial and taxation system, as well as current
            prices. The purpose of an economic evaluation is to review project costs that will be paid by
            the nation and evaluate project contributions to the nation to evaluate the economic rationality
            of investment behavior from a nation-wide perspective. The main differences between the
            two concepts are as follows:
            • Different evaluation viewpoints: financial evaluation takes the financial situation of the
                 project as its main viewpoint while economic evaluation takes the contribution of the
                 construction project to the national economy as its viewpoint;
            • Different implications of benefit and cost: a financial evaluation determines project benefit
                 and cost based on actual monetary payments and cash flow. An economic evaluation
                 determines the benefit and cost based on service provision to society and the
                 consumption of available resources by the project, using the increase/decrease of
                 national revenue as the only yardstick;
            • Different prices used in evaluation: financial evaluation uses current prices while
                 economic evaluation uses shadow prices to reflect opportunity cost and the demand-
                 supply relationship of relevant resources;
            • Different benefit calculation scopes: benefits calculated in financial evaluation are
                 beneficial to the project itself, which could be reflected in financial aspects, represented
                 as a toll charge, for example. The benefits calculated in economic evaluation include all
                 benefits obtained by all road users; and
            • Different parameters: financial evaluation uses current prices, the official exchange rate
                 and the financial discount ratio. Economic evaluation uses parameters which are
                 determined by the nation, such as shadow price, the shadow exchange rate, shadow
                 wages and the social discount ratio.
   (xcix) Given the above-stated differences between financial and economic evaluations, the
            construction costs and various expenses (financial costs) incurred during the operation period
            shall be adjusted first to be economic costs in economic evaluation. According to the
            Guideline, the adjustment shall be carried out according to requirements listed in the Method
            and Parameters of Economic Evaluation for Construction Projects, issued by the SPC to
            adjust those disproportionate costs for which the market price is distorted:
            • Adjustment of direct transfer payment: the direct transfer payment states that the
                 employer of the project may pay the cost or receive subsidy only because of the
                 establishment of the project, which does not increase national income. Thus, such costs
                 shall be deducted from financial costs. Domestic transfer payments shall include
                 government transfer payments, such as government subsidies and taxation, and credit
                 transfer payments, such as domestic loan interest;
            • Adjustment of prices of foreign trade goods: foreign trade goods in highway projects
                 generally include steel, asphalt, cement, timber and imported equipment, among other
                 things. Shadow prices for these goods may be calculated with certain formulae based on
                 FOB and CIF prices, as well as freight charges, trade expense and tariffs;
            • Adjustment of costs of non foreign trade goods: cost adjustments for non foreign trade
                 goods shall be carried out using shadow prices stipulated in the Method and
                 Parameters of Economic Evaluation for Construction Projects issued by the SPC;
            • Adjustment of prices of special inputs: this refers to adjustments to land and the shadow
                 wage of labor. Generally, the land cost refers to land acquisition costs in the investment
                 estimate. However, in an economic evaluation, potential optimal outputs of land shall be
                 estimated based on its optimal use and planting mode to substitute land acquisition cost




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                in financial evaluation. Adjustments to the shadow wage of labor shall be based on labor
                supply and level of skill in the project area; and
            • Adjustment to VOC: VOC shall be adjusted to estimate benefits accrued to road users as
                a result of project completion. VOC includes the shadow wage of vehicle operators,
                welfare of employees, fuel consumption, tyre consumption, heavy maintenance,
                depreciation, road maintenance fees, overhead, and taxation. The Guideline provides
                detailed examples for adjustments to each factor. Such adjustment methods are still used
                in current feasibility studies in China. The latter Study of Prioritization of Highway
                Investments and Improving Feasibility Study Methodologies adopted this method for
                adjustment and evaluation.
   (c)      Generally speaking, the main purpose of economic evaluation is to determine various costs,
            benefits and parameters. The introduction to methods for determining those parameters in
            the Guideline only focuses on calculation and evaluation of paid costs and obtained benefits
            by direct inputs of highway project and by road users, which belong to direct benefits
            produced by highway projects. As for those indirect benefits that result from project
            completion, such as improvement of the regional investment climate, promotion of
            employment, and poverty reduction in the project area, there is no specific calculation
            method. In addition, impacts of such indirect benefits to economic evaluation are not
            considered. Hence, the challenge of how to select an investment project while considering its
            poverty reduction effects is faced by traditional evaluation and project selection methods.
   (ci)     Chapter VII, Case Study, based on introductions of relevant theories and concepts for traffic
            forecasting and economic evaluation in above chapters, describes in detail the methods and
            processes used for traffic forecasting, estimation of relevant parameters, and processing of
            economic evaluation through three case studies on aspects of traffic forecast, economic
            evaluation, and investment estimates respectively. These three cases offer practical lessons
            and a great deal of useful guidance.

            Recent Studies on Feasibility Study Method

   (cii)    Since 1991, several study outcomes have improved feasibility study techniques for highway
            construction in China. Furthermore, several other study projects financed by WB and ADB
            have significantly improved the evaluation process and evaluation parameters.

            Study of Speed-Flow and VOC in Mountainous Areas

   (ciii)   To optimize parameters and their relations, HPDI, entrusted by MOC, carried out speed-flow
            and VOC studies in mountainous areas in Jilin, Hebei, Hunan, Yunnan and Qinghai
            Provinces beginning in 1992. The main study contents are:
            • 163 road sections were surveyed to collect a large scale of samples;
            • Driving speed was calculated by vehicle type;
            • Speed-flow relation was analyzed using an hour as the unit of measurement; and
            • Various data was analyzed more comprehensively and systematically than before.
   (civ)    The study outcome was Engineering, Technical and Economic Indicators of Highway in
            Mountainous Areas, which provides a relatively complete speed-flow relation formula and
            VOC model for low class roads in mountainous areas, adapting to the evaluation of low class
            roads in poor areas.

            Study of the Evaluation for Highway Projects

   (cv)     From 1993-1994, the British Overseas Development Administration (BODA) provided funds
            to enable the Ministry of Construction to carry out studies on improving evaluation methods
            for construction projects. MOC, as well as HPDI, was also involved in this study.
   (cvi)    The Study yielded two reports for the highway department. One summarized the processing
            method adopted for VOC in China and another is the Handbook of Economic Evaluation
            for Highway Project, which was prepared by HPDI but was not officially issued.



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   (cvii)    Some traffic distribution models were established in the study report related to VOC, which
             took such factors as road, vehicle and traffic features into account, but did so without on-site
             surveys and specific tests. The method adopted in the report is the Brazil expression of the
             HDM-III VOC model, with modified parameters that reflected the unique features of the
             Chinese system.

             Hebei-Henan Highway Capacity Study (1995)

   (cviii)   To modify Technical Standard for Highway Engineering, more studies on road capacity shall
             be carried out to accumulate more experiences for rectification. Therefore, a road capacity
             study was carried out jointly by MOC and WB, which is one component of Henan and Hebei
             National Highway Planning Program.
   (cix)     The main purpose of this study is to establish instructive principles for road capacity analysis
             to be carried out in feasibility studies and highway design. Road capacity is the essential
             foundation for the determination of an appropriate highway construction scale and technical
             standards. Hence, this study mainly focused on data collection and establishment of an
             appropriate model. The study report was finalized in 1998.

             Road Sector Policy and Institutional Support Study (November 1994 - July 1995)

   (cx)      This study was carried out by the Wilbur Smith Company for ADB and MOC, with the goal of
             assisting MOC in carrying out institutional reform, strengthening and improving planning
             techniques, and training and developing human resources to facilitate the development of
             NTHS. The study was divided into three parts:
             • Project evaluation, optimization and decision making;
             • Cost recovery, fund raising and financial situation; and
             • Organization, development strategy and process of provincial expressway companies.
   (cxi)     With regard to feasibility studies, this study suggested that the goal of economic evaluation
             shall be identified and the cost to the employer of regional highway projects shall be
             considered overall. The costs incurred in the whole evaluation period shall be included for
             consideration of the project when carrying out a comparison between the base scheme and
             the improved scheme. Also, economic evaluation shall take into account the time saving
             value of road users for public trips.

             Guangdong Comprehensive Transport Study (1986-1991)

   (cxii)    This study was completed by the Comprehensive Transport Institute of SPC, the Guangdong
             Provincial Planning Commission jointly with the WB, which made it the first internationally-
             funded comprehensive transport study. New methods were adopted in the study to review
             and analyze functions of different transport modes in economic development.

             Yangtze Delta Comprehensive Transport Study (1990-1992)

   (cxiii)   This study was jointly completed by the WB and SPC based on experiences and
             technologies obtained from the above study in which a new comprehensive transport
             planning theory was provided and different VOC calculation models were developed for each
             transport mode.

             Jilin Road Network Study (1993-1994)

   (cxiv)    This study was carried out by the ADB and the Jilin Provincial Communications Department
             jointly. In order to identify prioritized investment projects in Jilin Province, the transport
             planning theory and economic evaluation methods provided in the above-mentioned study
             were built upon in this subsequent study. Main study outcomes and methods developed in
             this study were applied in the feasibility study report for the Changchun to Siping Expressway
             project.


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              Study of Prioritization of Highway Investments and Improving Feasibility Study
              Methodologies (January 1996)

   (cxv)      MOC asked the WB to provide technical assistance to improve current methodologies for the
              prioritization of highway investment and for highway project feasibility studies that could be
              suitable for general application in China. In September 1994, the WB contracted Rust PPK
              Pty Ltd to undertake the study. The resulting study was entitled the Prioritization Study of
              Highway Investments and Improving Feasibility Study Methodologies, issued in January
              1996.
   (cxvi)     This study first reviewed the current regulations issued by MOC regarding the preparation of
              feasibility study reports and the actual methods used by local consulting institutions to identify
              their weaknesses and define topics that could be improved in the short term, as well as those
              that need attention in the longer term. Furthermore, it identified the major parameters for use
              in highway feasibility studies and devised updating procedures. It also developed a
              computerized corridor network model and an economic evaluation model for use in feasibility
              studies, including a financial analysis module. In addition, it introduced environmental
              considerations into the improved highway feasibility study methodology.
   (cxvii)    Following the Introduction, the report contains eight further chapters which support the
              findings of the Study.
   (cxviii)   Chapter 2 presents an overview of current practices in China for the project preparation and
              implementation cycles. Particular consideration is given to the methodology and practice of
              feasibility studies. Strengths and weakness are identified. Recent studies that have
              addressed feasibility study methodology in China are also noted.
   (cxix)     Chapter 3 summarizes the proposed methodology, showing the roles and the underlying key
              principles of the demand, economic, engineering, environmental and financial analyses. It
              also discusses the definition of the base and project cases used in the evaluation procedure
              and the appropriate use of “do-nothing” and “do-minimum” cases.
   (cxx)      Chapter 4 describes the elements required to undertake the network assessment, including
              development of the base year traffic demand, preparation of highway networks, and definition
              of the technical parameters required for traffic assignment.
   (cxxi)     Chapter 5 describes procedures for forecasting future freight and passenger demand,
              development of future road network alternatives, and assignment of traffic demand to those
              networks.
   (cxxii)    Chapter 6 discusses the engineering and environmental aspects of project selection in a
              highway feasibility study, including the definition of options to be examined, estimation of
              costs, and the various stages in planning a highway project.
   (cxxiii)   Chapter 7 discusses the economic evaluation of projects, both individually and on a corridor
              basis.
   (cxxiv)    Chapter 8 presents a simplified method for the financial evaluation of toll facilities. It also
              includes a discussion on the principles underlying the setting of tolls.
   (cxxv)     Chapter 9 presents an overview of a model developed in the current study to prepare
              economic and financial evaluations for project proposals.
   (cxxvi)    The methodologies provided in this study for economic and financial evaluation have been
              widely adopted by most consulting companies in China, making them the de facto
              standardized approaches in economic and financial evaluations for highway projects. The
              traffic forecast model provided in this study is developed based on special traffic forecasting
              software, TRANPLAN, which is not widely used by Chinese consulting companies. Therefore,
              this traffic forecast model may not be applicable. However, the process and method of
              definition of some parameters for traffic forecasting have certain instructional value to
              consulting companies for the purposes of traffic forecasting.
   (cxxvii)   The principles and simplified methods for a strategic environmental impact assessment
              (SEIA), which are typically conducted at a regional or national level, might be applicable in
              the preparation of a road network feasibility study report for highway projects. For individual
              roads, the procedure is to first carry out an initial environmental examination (IEE) and if this
              presents serious environmental problems, a full environmental impact assessment (EIA)



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           needs to be prepared. However at present, an EIA would be undertaken separately in China.
           Therefore the methods and principles provided in this study in practice are not for use in the
           preparation of engineering feasibility study reports. Of course, the concept provided in this
           study of utilizing EIA results for different corridor schemes is an important indicator for overall
           evaluation of whole corridor is a practical one. However, the EIA is generally entrusted to a
           separate agency, and its preparation often lags behind that of the engineering feasibility
           study report. The result of this time lag is that it is difficult to introduce the results of the EIA
           into the overall evaluation of the engineering scheme. This issue must be addressed in
           greater detail.

           Compilation Method of Feasibility Study Report for Highway Construction (for
           discussion), December 1996

   (cxxviii) In December 1996, the Compilation Method of Feasibility Study Report for Highway
             Construction (for discussion) was prepared by HPDI entrusted by MOC. It was developed
             based on a summarization of practices used in the preparation of feasibility study reports in
             relevant provinces, and also based on some study outcomes, such as the Prioritization
             Study of Highway Investments and Improving Feasibility Study Methodologies.
             Presently, only a draft version of this Method is issued internally, and it has not been issued
             officially by MOC. However, the report contents and format recommended in the Method are
             adopted in practice by relevant units which are responsible for the preparation of feasibility
             study reports.
   (cxxix) The Compilation Method of Feasibility Study Reports for Highway Construction (for
             discussion) contains eleven items, stipulating the purpose, significance, preparation
             foundation, main contents, study depth and report format of a feasibility study, respectively. It
             also includes six appendixes, as follows:
             • Format and Content Requirements for Pre-Feasibility Study Reports for Highway
                  Construction Projects
             • Format and Content Requirements for Engineering Feasibility Study Reports for Highway
                  Construction Projects
             • Method of Traffic Evaluation for Highway Construction Projects
             • Method of Economic Evaluation for Highway Construction Projects
             • Method of Financial Evaluation for Highway Construction Projects Financed by Foreign
                  Investment
             • Diagram Demonstration of Feasibility Studies for Highway Construction Projects
   (cxxx) Report format and contents attached to the Compilation Method of Feasibility Study
             Report for Highway Construction (for discussion) show large changes in the preparation
             of engineering feasibility study reports compared to those methods articulated in the previous
             version, with little change in pre-feasibility study reports.
   (cxxxi) Firstly, the Method requires an additional chapter of Environmental Impact Aanlysis, to
             address impacts of engineering to soil and vegetation, soil erosion, wildlife and relevant
             protection measures, biological environment, social environment, and land use. It also
             requires mitigation measures to alleviate impacts to the environment, which is seen as an
             improvement over the previous version.
   (cxxxii) Secondly, a chapter on Energy Saving Evaluation has been added, requiring an evaluation of
             the contributions to energy savings as a result of project completion, from the perspective of
             fuel savings resulting from improvements to the road network service level.
   (cxxxiii) Thirdly, a chapter on Overall Evaluation has been added to a section in the report formatting
             attached to this Method. This requires the selection of a proposed scheme based on
             comprehensive considerations of engineering, economic evaluation, environmental impact,
             energy savings and construction cost. When compared to methods for evaluating
             construction schemes based solely on engineering feasibility and construction costs, the
             approach could better reflect the impacts of construction projects on society, the
             environment, and energy use. This ensures that the resulting highway project will be more
             people-oriented.



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           Several Issues to be Noticed in Current Feasibility Study Work for Highway
           Construction, HPDI, June 2000

   (cxxxiv) To improve project front-end works for highway construction projects, several issues to be
            addressed in feasibility studies are provided by HPDI based on more than two decades of
            practical experience. These issues are:
            • The macro instructive role of planning on feasibility studies shall be emphasized and
                applied, as specified:
                o The selection of a project shall follow the systematic requirement of network planning
                     and scale merits, resulting from the formation of the network, shall be highlighted in
                     the selection process;
                o The feasibility study of a specific project shall fully consider the situation of network
                     development and formation based on planning requirements to closely coordinate
                     and link with relevant projects on various common aspects, such as route alignment
                     and technical standards;
                o Continuous efforts shall be taken to improve planning work; and
                o Attention shall be paid to coordination between city bypass lines within the overall
                     planning environment.
   (cxxxv) The importance of planning is indicated in this document. The feasibility study is a key step to
            transfer planning into project implementation. Thus, planning and feasibility studies are two
            closely linked and complimentary components of any preliminary highway work. Therefore,
            the neglect of the function and role of planning in feasibility studies shall be changed so that
            the project in question can be placed in its larger context to ensure scientific, systematic and
            coordinated decision-making.
            • The technical standards shall be developed in a sound way and more attention shall be
                paid to environmental protection.
   (cxxxvi) The essential elements for the determination of technical standards include traffic
            development, the function and role of the project in question within its network, and regional
            economic development. More attention must be devoted to the protection of the natural
            environment to reduce impacts to nature as much as possible, which has become the
            predominant issue in highway construction.
            • A comparison between engineering alternatives and control of construction cost shall be
                carried out in a reasonable way. The following three issues will require specific attention:
                o Project location and hydraulic investigation and reconnaissance works shall be
                     undertaken step by step. Currently, repetition of front-end work and the waste of
                     economic resources are found in several projects, which have resulted from
                     insufficient working depth.
                o Sufficient alternatives shall be reviewed. The proposed alternative could not be
                     determined scientifically and rationally without sufficient alternatives for comparison.
                     Currently, the issue of insufficient alternatives or no alternatives has become a
                     significant issue for feasibility studies.
                o Estimate of engineering quantities shall be done well.
                o The organization and management of feasibility studies shall be strengthened to
                     include following measures: 1. provide for a sufficient study period; 2. avoid
                     administrative interferences; 3. standardize reconnaissance and the design market,
                     and strengthen qualification management for those units; 4. the design units shall
                     carry out studies in a scientific, objective and fair way to maintain the highest quality;
                     and 5. continually revisit and improve post evaluation work.

           Guideline for Safety Audit of Highway Project, MOC, JTG/T B05-2004

   (cxxxvii)    This is a recommended industrial standard which could be used on a voluntary basis in
            the highway industry. The Guideline is prepared by Chelbi Engineering Consultants Inc.
            together with Tongji University and Shandong Transport Scientific Institute. It was issued on
            September 1 2004 and implemented on November 1, 2004.




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   (cxxxviii)    Based on the analyses and outcomes of the Road Safety Audit in Europe and American
            countries, the preparation and study team of the Guideline, accounting for China’s unique
            attributes and environment, selected several representative highways for survey and study,
            such as the Shenyang to Dalian Expressway in Liaoning Province, the Jinan to Qingdao and
            Yantai to Qingdao Expressways in Shandong Province, the Taiyuan to Gejiu Expressway in
            Shanxi Province, the Chengdu to Chongqing Expressway in Chongqing, the Hankou to
            Yichang Expressway in Hubei Province, the Shanghai to Nanjing Expressway in Jiangsu
            Province and the Tulufan to Urumchi to Dahuangshan High Class Highway. Based on
            extensive statistical analyses, the relationships between traffic accidents and highway
            geometrical indicators, traffic accidents and operating speed, as well as highway geometrical
            indicators and operating speed were thoroughly studied and relevant road safety audit
            contents, methods and standards for expressway and first class highway were provided
            preliminarily. This would play a positive role in the implementation of the safety audit and
            further encourage improvements in road safety in China.
   (cxxxix)      Highway safety audits can be divided into three phases; the feasibility study phase, the
            design phase, and the operation phase. Safety audits in the engineering feasibility study
            stage shall be conducted based on three major areas; technical standards, the technical
            proposal, and environmental impact.
   (cxl)    Regulations for relevant design specifications are very strict in China. However, as discussed
            in section 4.1.7, some factors that create operational hazards are often found during the
            process of evaluating engineering schemes in feasibility study reports for expressway
            projects, even though those factors may conform to relevant highway design specifications.
            Although these specifications may be in compliance with requirements stipulated in
            Technical Standards for Highway Engineering and other relevant design specifications,
            they could prove detrimental to operation safety. Thus, the Guideline provides specific audit
            requirements to those issues for safety.

   Main Achieved Outcomes

   (cxli)    China has been conducting feasibility studies for highway construction for almost 23 years.
             The compilation methods of feasibility study reports, as well as study methodologies have
             changed gradually over time. The main outcomes of this process are as follows:
             • Regulations concerning project preparation and approval are relatively clear, easily
                 understood and controlled;
             • Regulations concerning engineering proposal design are explicit and the overall quality is
                 high;
             • Years of research and analysis have yielded highly effective theories and methodologies
                 for use in traffic forecasting. Using the “four-stage” method based on OD survey data for
                 traffic forecasts has become a universal method adopted by Chinese consulting units,
                 which provides a strong foundation for accurate traffic forecasts and evaluation of
                 technical proposals and construction scale;
             • Relevant parameters involved in economic evaluation have been improved. As a result,
                 relatively mature parameter estimate models and evaluation models have been
                 developed. In addition, financial analysis methods are gradually integrated into the
                 market economy mode, which is in compliance with requirements of international
                 financial agencies.

   Main Deficiencies

   (cxlii)   Although many positive results have been seen in China based on the developed theories
             and methodologies for conducting feasibility studies for highway construction projects, certain
             deficiencies remain, especially concerning the preparation of feasibility study reports for
             highway projects in poor areas. Some particular deficiencies are:
             • In the traffic forecast process, illogical measures are adopted to process repetitive traffic
                 data in summarizaing OD data in the base year. Furthermore, the on the ground reality of
                 the road network is not adequately considered in the division of OD zones, resulting in a


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                  distorted reflection of network features by the OD survey. This then, for example,
                  complicates the analysis and forecasting process for turning traffic volume on an
                  interchange and results in a flawed determination of location and type of interchange.
              •   The OD survey could not identify trip composition for the poor. Therefore, it is difficult for
                  current feasibility study methods to analyze the impact of highway construction on the
                  poor population in a quantatitive way.
              •   It is difficult to carry out an evaluation of benefits accrued to poor populations as a result
                  of project completion by using current study methods for economic evaluation.
              •   The current study methods could not simultaneously carry out evaluations for
                  resettlement resulting from the project. Only those projects financed by loans from
                  international financial agencies could conduct resettlement impact evaluations separately
                  as necessary.


TRAFFIC SURVEY

   Current Survey and Analysis Method

   (cxliii)Based on both successful and unsuccessful feasibility study activities in recent years, the
           current method used for traffic survey could be summarized generally as the “four-stage”
           method which is based on OD survey results. This method is used for traffic forecasts in
           feasibility studies for expressway projects in China. The fundamental datum required for this
           method is the OD trip matrix from the base year which could be obtained from the OD survey.
           This method is likely to remain the preferred method for the foreseeable future. The OD
           survey method is described below.
   (cxliv) Increases in traffic volume on the road may cause a rapid increase in OD survey costs. The
           average road user has strict requirements regarding trip time, which result in increasingly
           poor coordination to the OD survey and increasing difficulty in ensuring survey accuracy.
           Therefore, the new integrated OD matrix model shall be developed to avoid increasing survey
           expenditures. Successful experiences with integrated OD models using new technologies in
           other countries could be used for reference. Furthermore, a more realistic method could be
           adopted in China of sharing OD survey data collected for various projects and unifying OD
           zone divisions to form a wide-spread OD trip matrix integration. Also, newly simplified traffic
           survey data could be used to modify and update previous OD matrices to save survey
           expenditures.

              Selection of Survey Location

   (cxlv)     Four criteria shall be used to select OD survey locations:
              • Location at county (or traffic zone) boundary is a relatively realistic choice that will enable
                 the survey team to avoid excessive interference by trips in the zone;
              • Survey locations shall be as far away from downtown areas as possible to avoid wasting
                 survey resources on local trips, as this would only lengthen the survey process but
                 contribute nothing to the results;
              • If there is a parallel road, survey points shall be arranged on each parallel corridor which
                 would have the potential to receive diverted traffic. At least one survey shall be carried
                 out for each important survey direction; and
              • For road projects which would arrange interchanges, survey points shall be arranged on
                 road sections between two potential interchanges to provide basic and accurate
                 information that may be used to analyze and estimate turning traffic on the interchange.




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           Sample Survey

           Principle of Sampling

   (cxlvi) The sampling ratio is generally very high in traffic surveys carried out by design and
             consulting units in China, especially for road sections with relatively little traffic in western
             areas, which can have ratios as high as 100%. An exorbitantly high sampling ratio does not
             always result in a more accurate analysis, but could increase the input of survey resources
             and interference for normal traffic. It could also increase operational difficulty which would
             influence survey accuracy as a result. Therefore, through traffic survey points shall be
             surveyed on a random sample basis, with the sampling ratio established as a function of daily
             traffic.
   (cxlvii) Using the same proportion of random sampling for various traffic types (through traffic and
             local traffic) will help to ensure correct survey and analysis results. If the sampling ratio for
             local traffic is lower than that for through traffic, analysis results would overestimate through
             traffic volume and vice versa.
   (cxlviii) Traffic observation records by vehicle type shall be prepared with the OD survey, which is an
             important element in extensive analysis for OD sampling surveys. Traffic observation shall be
             carried out by vehicle type, by travel direction and by interview time. For main OD survey
             points, 24-hour traffic observation must be undertaken.

           Sampling Ratio

   (cxlix) The number of OD survey samplings is the function of daily traffic volume, the scale of which
           is directly related to the accounting accuracy and survey data analysis. The lower the annual
           average daily traffic (AADT), the higher the sampling ratio. For thoses roads with high traffic
           volume, the sampling ratio could be lower. The following figure shows recommended
           sampling ratios.




                                  120

                                  100

                                   80

                                   60
                      Sampling Ratio

                                   40

                                   20

                                       0
                                           0   500       1000    2000    5000   10000
                                                                            AADT


                                 Recommended OD Survey Sampling Ratio

           Survey Period

   (cl)    The following criteria shall be adopted for the survey period on each survey point based on
           traffic volumes and their composition in different road sections:
           • Through traffic always occurrs disproportionally at night on some major highways with
                large traffic volumes. In order to best conduct an overall survey, a 24-hour survey shall



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                 be carried out, which could also provide a day/night proportion coefficient to convert
                 survey data collected from other 12-hour survey points to estimated 24-hour data;
             •   To reduce survey costs and overhead, only one 24-hour OD survey point could be
                 arranged along one important highway, which shall be set up as a continuous counting
                 station on the highway as far as possible. However, if two major parallel roads have
                 different trip characteristics, at least one 24-hour survey point must be arranged on each
                 road respectively;
             •   For minor roads, a 12- or 16-hour survey would be sufficient and, in winter months with a
                 shorter daytime period, a 10-hour survey may be adequate. The day/night proportion
                 coefficient obtained from the 24-hour survey could be used to convert those survey data
                 into estimated 24-hour data.

             Survey Forms

   (cli)     Standard survey forms are developed and provided in relevant guidelines prepared by HPDI,.
             The main contents are as follows:
             • Location of survey point;
             • Travel direction of vehicles to be surveyed;
             • Survey time period;
             • Survey date;
             • Vehicle types, as following eight types:
                 o Light truck, <2.5t
                 o Medium truck, 2.5-7t
                 o Large truck, >7t
                 o Container vehicle
                 o Minibus, □ 20 seats
                 o Bus, >20 seats
                 o Tractor
             • Rated loading capacity of freight vehicle or passenger vehicle;
             • Cargo category (twelve cargo categories and passenger stipulated in relevant
                 specifications issued by MOC);
             • Actual freight loading or numbers of passengers;
             • Origin; and
             • Destination.
   (clii)    The above survey form is available for surveys on various road classes.

             OD Zone Division

   (cliii)   The purpose of OD zone divisions are as follows:
             • To identify geographic codes of O-D points to provide a foundation for a trip distribution
                matrix;
             • To provide a foundation for a traffic distribution forecast; and
             • To determine the location at which traffic types come in and out of the network (i.e. how
                each zone links with the network) which could provide a foundation for the determination
                of traffic volume in and out of an interchange, as well as interchange turning traffic
                volume.
   (cliv)    The principle for OD zone division includes:
             • The OD zone division shall correspond to relevant administrative divisions for easy
                determination of traffic increase ratios in traffic zones based on certain economic
                indicators, such as GDP and population. For most corridor projects, traffic zone divisions
                could reach city and county level.
             • Traffic zone divisions shall facilitate traffic assignments for a proposed project. To
                precisely analyze turning traffic at interchanges and traffic`c volume on linking lines for a
                proposed project, OD zone division shall be delineated specifically to avoid integrating
                traffic flows with different directions into the same zone. Generally, OD zone division in


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                the direct project area shall reach the township level. Townships passed by the linking
                line with a proposed project could be integrated into one zone to simplify OD data
                processing.
            •   The areas outside of a proposed project shall be divided, along with other important
                areas, into surrounding provinces adjacent to the project area and other provinces.
                Generally, it assumes that traffic in those areas are linking to the project area via roads
                ouside of the project area.

            Processing of Basic Data

   (clv)    The following steps shall be followed for processing of basic survey data:
            • Encoding: encode data sections in each survey form, including coding of the OD zone,
               coding of cargo category and coding of vehicle type, etc;
            • Proofreading: check forms which have completed coding and revise any coding or other
               errors. The proofreading work shall be carried out by staff who are familiar with survey
               procedures;
            • Data input: input survey forms with correct coding into a spreadsheet or database;
            • Data proofreading: check for any errors in the numeric range for each group of data, as
               well as for any errors in each data combination, such as vehicle type and cargo category,
               etc;
            • Simple statiscal analysis shall be carried out to correct data after proofreading to obtain
               sampling ratio.

            Sampling Extension

   (clvi)   The trip features of sampled vehicles passed through survey points could be obtained from
            OD survey data. However, those features needed for a feasibility study are annual average
            trip features and traffic flows. Therefore, sampled traffic shall be extended to represent
            features of all vehicles in the survey data, and then adjusted according to daily and seasonal
            changes. Generally, the following coefficients are used to extend OD survey samples:

            •   Hourly adjustment coefficient: K1
                Due to different features of vehicle composition in different periods, such as more
                passenger vehicles in the morning and more freight vehicles in afternoon and at night,
                using one hourly coefficient for adjustment would result in overestimation or
                underestimation for a particular type of vehicle. Thus, relevant adjustments shall be
                carried out based on survey samples and traffic observations in corresponding hours. To
                reduce the amount of work, one day is generally divided into four time periods, as follows:
                Morning:        07:00 – 09:00
                Noon:           09:01 – 16:00
                Afternoon:      16:01 – 19:00
                Night:          19:01 – 07:00

                The calculation formula for the hourly adjustment coefficient is:

                                                K1vhi=Cvhi/Thvi

                Where,

                K1vhi    -       Adjustment coefficient K1 of vehicle type v at period h on direction i;
                Cvhi     -       Observed traffic of vehicle type v at period h on direction i;
                Tvhi     -       Numbers of sampling vehicles of vehicle type v at period h on
                                 direction i;

                If sampling ratio is 100%, K1=1.



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           •   Daily adjustment coefficient: K2 (daytime/night ratio)
               For survey points for which the survey time is less than 24 hours, the sampling records
               shall be extended to represent all traffic flows in the survey data.

               The calculation formula for the daily adjustment coefficient is as follows:

                                                               24

                                                               ∑C
                                                               h =1
                                                                       vhi
                                               K2 vi=    N

                                                        ∑T
                                                        (
                                                        h =1
                                                                vhi   × K1vhi)

               Where,

               K2vi                        -       Adjustment coefficient K2 of vehicle type v on direction i;
                24

               ∑C
               h =1
                      vhi
                                           -       Total traffic of vehicle type v on direction i in one day;

                N

               ∑ iT
               h =1
                          vhi   × K1vhi    -       Sample numbers of vehicle type v on direction i after
                                                   adjustment to N-hour sample survey.


           •   Weekly adjustment coefficient: K3 (weekly non-uniform coefficient)
               Various trips have different features in every workday and offday in a week, and the
               numbers of vehicles passing through each survey point will differ on any given day.
               Generally, however, the proportion of daily traffic in every day in a week to average daily
               traffic in a week would have a certain degree of regularity in a specific period. Therefore,
               the proportional coefficient of traffic volume in survey days to daily average traffic in a
               week obtained from previous surveys shall be used to adjust traffic volumes in the current
               survey. The adjusted traffic volume would be daily average traffic in a survey month.

               The weekly adjustment coefficient shall be calculated with the following formula:
                                                                 7

                                                               ∑C
                                                               d =1
                                                                       d     ÷7
                                                   K3s=
                                                                      Cd
               Where,

               K3s                         -       Adjustment coefficient K3 at survey point s;

                7

               ∑C
               d =1
                      d   ÷7               -       Daily average traffic in a week at survey point s;


               Cd                          -       Daily traffic corresponding to survey date.

               Special surveys and statistics are carried out by traffic survey and management
               departments in each provincial commnunications department in China to measure and
               calculate this coefficient. Also, continuous statistical materials observed at toll gates near
               survey points could be used to calculate a weekly non-uniform coefficient with the above
               formula.


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              •   Monthly adjustment coefficient: K4 (monthly non-uniform coefficient)
                  Different seasons in a year have different trip features and regularities. In order to
                  calculate AADT, coefficient of daily average traffic in each month to 12-month daily
                  average traffic shall be used to adjust traffic in survey days.

                  The following formula could be used to calculate the monthly adjustment coefficient:
                                                           12

                                                           ∑C
                                                           m =1
                                                                  m    ÷ 12
                                                    K4=
                                                                  Cm

                  Where,

                  K4                        -      Monthly adjustment coefficient, K4
                   12

                  ∑C
                  m =1
                         m   ÷ 12           -      Daily average traffic in previous year at survey point;

                  Cm                        -      Daily average traffic in the month corresponding to
                                                   current survey date in previous year at survey point.


                  Also, the monthly non-uniform coefficient could be inferred from statistical data obtained
                  from continuous observation stations on each national highway as well as each provincial
                  highway in each province.

              Modifiication to Repetitive Survey Samples

   (clvii)    In processing survey data, attention shall be paid to those repetitive records of vehicles
              traveling from origin area to the destination area and being surveyed several times. Such
              repetitive records shall be modified.
   (clviii)   To avoid repetitive surveys, the vehicles in China which have been surveyed are labeled
              during the survey. However, certain deviations also exist. For a 12-hour survey, for instance,
              such measure would overestimate the proportion of through traffic. When a labeled vehicle
              travels the same survey point again, it would be missed thus causing an underestimation of
              local traffic.
   (clix)     To improve precision of data surveying and processing, the “series-parallel” method (or full
              vehicle number survey) is used by most consulting companies to modify repetitive surveys.
              Regardless of whether or not it has been previously surveyed, every vehicle passing through
              each survey point shall be surveyed on a random basis. During summarized processing for
              OD data, the maximum numbers of vehicles passing through several survey points on the
              same route for every pair of OD data shall be chosen by using the “series-parallel” method to
              sum up the maximum numbers on another route. Then, OD traffic without repetitive surveys
              could be obtained.

              Calibration of OD Matrix

   (clx)      The OD trip distribution matrix of the survey year could be developed after adjustments with
              the hourly, day and night, weekly non-uniform and monthly non-uniform coefficients, which
              shall be assigned to the road network in the survey year. If the assigned traffic on a specific
              road section is not consistent with the observed traffic, the OD matrix shall be calibrated
              further.




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   (clxi)     The calibrated OD matrix which assigns traffic in specific road sections is consistent with
              observed traffic, and may be used to analyze trip distribution features in the base year and to
              carry out future traffic forecasts.


TRAFFIC AND POVERTY DATA NECESSARY FOR ARNM

   ARNM Input Data

   (clxii)    There are a total of four types of input data necessary for ARNM, i.e. network data, traffic
              data, poverty data and VOC data, which are mainly obtained from traffic surveys.
              • Network Data
                  Network data necessary for ARNM include:
                  o General parameters describing the network, including numbers of nodes, existing
                      roads in network, planned rehabilitation, and new construction road sections;
                  o Names and codes of each road section providing transport services for both local
                      traffic and through traffic; and
                  o Road section parameters, including road class, features, terrain, design capacity,
                      length, annual maintenance expense per km, roughness, toll rate and all-weather
                      proportion, etc.
              • Traffic Data
                  o Vehicle types, including car, minibus, bus, light truck, medium truck, large truck,
                      container and trailer, motorcycle, tractor, man-powered vehicle, livestock-powered
                      vehicle and bicycle, etc;
                  o Traffic volume in base year, OD traffic, increased traffic rate, forecasted traffic for
                      each road section.
              • Poverty Data
                  o Proportion of poor traffic;
                  o Proportion of poor vehicle owner; and
                  o Proportion saving benefits accrued to the poor.

              •   VOC Data
                  o Time value by vehicle type;
                  o Traffic accident expense by vehicle type;
                  o Toll rates by vehicle type;
                  o Toll diversion ratio by vehicle type;
                  o Speed limit by vehicle type;
                  o VOC per km and/or per hour by vehicle type, terrain and roughness;
                  o Speed-flow curves by vehicle type, terrain and road class;
                  o Design capacity by road class.

   Update of Traffic and Social Impact Survey Parameters

   (clxiii)   Main parameters to be updated in this Guideline for ARNM are listed in following table




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                                   新指南需要更新的技术指标和参数及其调查方法

                        Parameters                                      Update Method

    1.     Traffic Demand
           OD Mode                                       Re-design survey forms to identify national
                                                         highways and provincial highways, also facilitate
                                                         updated statistics of through traffic and local
                                                         traffic;
                                                         Using the “series-parallel” method to eliminate
                                                         repetitive surveys
           Demand Elastic Coefficient              Update both freight and passenger transport demand
                                                   elasticity coefficients based on further review of
                                                   development of traffic demand and its relation with
                                                   economic development.
           Vehicle Equivalent Coefficient          MTE coefficient recommended in new issued Technical
                                                   Standards for Highway Engineering shall be used.
           Composition of Vehicle Type             Except for common vehicle types, additional surveys
                                                   and analyses shall be carried out for such vehicle types
                                                   as tractor, motorcycle, man-powered vehicle, livestock-
                                                   powered vehicle and bicycle which are commonly used
                                                   on low class roads in poor areas.
           Road Capacity/Speed-Flow Curve                A new speed-flow curve shall be established
                                                         based on new survey data, especially for low class
                                                         roads, which could be used to assess benefits of
                                                         those roads and their impacts to the poor;
                                                         Survey and update roughness and capacity of the
                                                         network in question.

    2.     Network in Base Year and Feature Year
                                                   With the exception of general survey data for networks,
                                                   it is necessary to carry out detailed surveys to update
                                                   feature data, including
                                                          Length, class, terrain, design capacity, roughness,
                                                          pavement condition, all-weather service, toll and
                                                          its rate, maintenance expense per km of different
                                                          road sections in existing network;
                                                          Supplementary survey to identify those roads
                                                          providing services to through traffic or local traffic;
                                                          Review and update regional short, medium and
                                                          long-term planning, as well as new construction
                                                          projects and rehabilitation projects.

    3.     Construction and Maintenance of New
           Constructon and/or Rehabilitation
           Projects

           Construction Cost                       Review basic parameters used in construction costs
                                                   and various investment estimates, update investment
                                                   estimates for new construction projects and
                                                   rehabilitation projects.
           Maintenance Expense
                                                        Update maintenance expenses in project cycle;
                                                        Update overhead standards for new construction
                                                        and rehabilitation projects;
                                                        Update overhead standards for new construction
                                                        and rehabilitation toll projects.




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                        Parameters                                          Update Method

    4.     VOC
           VOCs of Typical Vehicle Types                 VOC of typical vehicles types could adopt latest study
                                                         outcomes in recent years and new survey data could be
                                                         used to update calculation formulae for those VOCs.
                                                         When necessary, new survey forms could be developed
                                                         to update relevant data in feasibility study.
           Othe VOCs on Low Class Road                   Using newly designed survey forms to collect relevant
                                                         data to adjust and establish VOCs for other vehicle
                                                         types on low class based on VOCs of typical vehicle
                                                         types.
           Traffic Accident Losses                       Update current traffic accident ratio and relevant
                                                         calculation formula by using collected traffic accident
                                                         data.



    5.     Poverty Data
                                                         Develop new social impact and poverty impact
                                                         guidelines suitable for the unique Chinese environment
                                                         according to ADB’s social impact assessment guideline.

                                                         Develop new social impact and poverty impact survey
                                                         forms according to the requirements of new guidelines.
           Poverty Data Related to Vehicle               Add surveys of passengers and vehicle owner’s income
                                                         to obtain proportion of poor vehicle owners and poor
                                                         passengers.
           Identification of Project Impact Area         Identify impacted area by proposed project according to
                                                         assessment guideline.
           Identification of Stakekholder Group          Identification of stakekholder groups is as important as
                                                         the identification of the project impact area, for which
                                                         size and scope are essential to the survey scope and
                                                         inputs.
           Assess Stakeholder Needs                      New survey forms shall be developed in guidelines to
                                                         prioritize the needs of stakeholders for a proposed
                                                         project and then provide mitigation measures for social
                                                         impacts.
           Assess Stakeholder Absorptive Capacity        The construction project would improve the service
                                                         levels and environment. Based on surveys, stakeholder
                                                         absorptive capacity for new social services shall be
                                                         assessed and relevant training guidelines shall be
                                                         developed to improve their capacities.
           Assess Gender Issues         and    Improve   According to survey forms, it shall review proportion of
           Female Benefit Level                          female labors in stakeholders, their access to social
                                                         services such as education and health. Impacts of the
                                                         improvement of social service facilities for women after
                                                         project completion shall be assessed.
    6.     Assessment of Resettlement
                                                         Develop a resettlement action plan and relevant
                                                         assessment report based on ADB’s resettlement
                                                         assessment guidelines.

                                                         Prepare a guideline for resettlement plans suitable for
                                                         the Chinese context based on ADB’s resettlement
                                                         assessment guideline.

                                                         Articulate main data and survey methods necessary for
                                                         resettlement assessment.




                            CPCS Transcom – Louis Berger International Consortium
33 of 76                                        Improved Guidelines for Road Network Feasibility Study
                                                     Section A: Engineering and Economic Guidelines


SURVEY METHOD OF TRAFFIC DATA NECESSARY FOR ARNM

   (clxiv) Surveys for basic information regarding the road network, traffic, and road users in the area
           in question shall be carried out according to data requirements necessary for ARNM inputs.
           Relevant survey forms have been developed in this Guideline. The survey forms related to
           the road network itself could be filled out by the local transport authority.

   Development of Survey Forms for the Road Network Model

   (clxv)   Not only current network data, but also data related to network planning and construction
            planning are necessary for the ARNM model. Hence, new survey forms are developed for
            different roads (national highway, provincial highway and country road), completed major
            highways in the project road network, and ongoing rehabilitation projects.

   Traffic Volume Survey Form

   (clxvi) To collect and review traffic data necessary for ANRM, different purposes of survey forms are
           developed for thru traffic on national highways and local traffic on provincial and country
           roads respectively. Also, special survey forms are designed to review passenger transport
           shifts in county passenger transport stations, and to review the income of passenger
           transport staff.

   Freight Cost Survey Form

   (clxvii) Mature calculation models have been established in current assessment methods for
            operation costs of common passenger vehicles and freight vehicles. However, no available
            calculation models can be adopted for calculation of annual repair expenses for tractors,
            motorcycles, livestock-powered vehicles, and man-powered vehicles. Therefore, the
            sampling survey would be carried out for the above vehicle types on low class roads during
            traffic surveys.

   Social Survey Form

   (clxviii) Together with traffic surveys, a brief income and household survey shall be carried out to
             vehicle operators to obtain relevant household data.




                       CPCS Transcom – Louis Berger International Consortium
            34 of 76                                                                                           Improved Guidelines for Road Network Feasibility Study
                                                                                                                    Section A: Engineering and Economic Guidelines

                                    Survey Form for Basis Information on Area-Wide Network (National Highway, Current Case)



               Date:                       (day)__(month)__(year)            Inquirer Name
                   Road Code                 1100         Name of Route       Road Condition of Baise to Bajie (Tianshengqiao) Section of National Highway 324 (current case)
                                                                                                             Number of Annu. Maint.       Toll                                Mixed
Region Code              Origin        Destination           Length       Class   Completion      Terrain                                          Pavement Seasonal Off Days
                                                                                                          traffic accident Expense        Rate                                Traffic
                                                               Km              (month)__(year)__                       CNY 10,000 CNY/Km/pcu               Total During Harvest MTE
          1101 Baise               Yongle
          1102 Yongle              Sanhe
          1103 Sanhe               Tangxing
Baise
          1105 Xixiang             Liangse
          1106 Liangse             Wangdian
          1107 Wangdian            Xinjian
          1108 Xinjian             Tianlin
                                   Western Intersection
          1109 Tianlin (Leli Town) of Yingpan
               Western Intersection
          1110 of Yingpan           Bantao
Tianlin
          1111 Bantao              Jiuzhou
          1112 Jiuzhou             Xianjie
          1113 Xianjie             Shali
          1114 Shali               Weile
          1115 Weile               Bianya

Longlin 1116 Bianya                Longlin (Xinzhou)
        1117 Longlin (Xinzhou)     Zhelang
          1118 Zhelang             Bajie
               Total




                                                             CPCS Transcom – Louis Berger International Consortium
            35 of 76                                                                                           Improved Guidelines for Road Network Feasibility Study
                                                                                                                    Section A: Engineering and Economic Guidelines

                                  Survey Form for Basis Information on Area-Wide Network (National Highway, Being Updated Case)



               Date:                        (day)__(month)__(year)           Inquirer Name
                   Road Code                  1100         Name of Route Road Condition of Baise to Bajie (Tianshengqiao) Section of National Highway 324 (being updated case)
                                                                                                            Number of Annu. Maint.       Toll                                  Mixed
Region Code              Origin         Destination           Length    Class   Completion      Terrain                                           Pavement Seasonal Off Days
                                                                                                         traffic accident Expense        Rate                                  Traffic
                                                                Km             (month)__(year)__                        CNY 10,000 CNY/Km/pcu              Total During Harvest MTE
          1101 Baise                Yongle
          1102 Yongle               Sanhe
          1103 Sanhe                Tangxing
Baise
          1105 Xixiang              Liangse
          1106 Liangse              Wangdian
          1107 Wangdian            Xinjian
          1108 Xinjian              Tianlin
                                    Western Intersection
          1109 Tianlin (Leli Town)  of Yingpan
               Western Intersection
          1110 of Yingpan           Bantao
Tianlin
          1111 Bantao               Jiuzhou
          1112 Jiuzhou             Xianjie
          1113 Xianjie              Shali
          1114 Shali                Weile
          1115 Weile                Bianya

Longlin 1116 Bianya                 Longlin (Xinzhou)
        1117 Longlin (Xinzhou)      Zhelang
          1118 Zhelang              Bajie
               Total




                                                               CPCS Transcom – Louis Berger International Consortium
            36 of 76                                                                                           Improved Guidelines for Road Network Feasibility Study
                                                                                                                    Section A: Engineering and Economic Guidelines

                                    Survey Form for Basis Information on Area-Wide Network (National Highway, Planning Case)



               Date:                       (day)__(month)__(year)            Inquirer Name
                   Road Code                 1100         Name of Route      Road Condition of Baise to Bajie (Tianshengqiao) Section of National Highway 324 (planning case)
                                                                                                             Number of Annu. Maint.       Toll                                Mixed
Region Code              Origin        Destination           Length       Class   Completion      Terrain                                          Pavement Seasonal Off Days
                                                                                                          traffic accident Expense        Rate                                Traffic
                                                               Km              (month)__(year)__                       CNY 10,000 CNY/Km/pcu               Total During Harvest MTE
          1101 Baise               Yongle
          1102 Yongle              Sanhe
          1103 Sanhe               Tangxing
Baise
          1105 Xixiang             Liangse
          1106 Liangse             Wangdian
          1107 Wangdian            Xinjian
          1108 Xinjian             Tianlin
                                   Western Intersection
          1109 Tianlin (Leli Town) of Yingpan
               Western Intersection
          1110 of Yingpan           Bantao
Tianlin
          1111 Bantao              Jiuzhou
          1112 Jiuzhou             Xianjie
          1113 Xianjie             Shali
          1114 Shali               Weile
          1115 Weile               Bianya

Longlin 1116 Bianya                Longlin (Xinzhou)
        1117 Longlin (Xinzhou)     Zhelang
          1118 Zhelang             Bajie
               Total




                                                             CPCS Transcom – Louis Berger International Consortium
    37 of 76                                                                                               Improved Guidelines for Road Network Feasibility Study
                                                                                                                Section A: Engineering and Economic Guidelines

                                 Survey Form for Basis Information on Area-Wide Network (Provincial Highway, Current Case)



          Date:              (day)__(month)__(year)         Inquirer Name
                  Road Code      1100       Name of Route              Road Condition of Tangxing to Leye Section of Provincial Highway S20341 (current case)
                                                                                                Number of Annu. Maint.        Toll                                 Mixed
Region Code         Origin    Destination      Length       Class      Completion    Terrain                                          Pavement Seasonal Off Days
                                                                                             traffic accident Expense         Rate                                 Traffic
                                                 Km                 (month)__(year)__                     CNY 10,000 CNY/Km/pcu               Total During Harvest MTE

          2101 Tangxing       Lingzhan
          2102 Lingzhan       Xiajia
Lingyun
          2103 Xiajia         Lingyun
          2104 Lingyun        Bali
      2105 Bali               Gentian
 Leye 2106 Gentian            Wucheng
          2107 Wucheng        Leye


                  Total




                                                            CPCS Transcom – Louis Berger International Consortium
   38 of 76                                                                                               Improved Guidelines for Road Network Feasibility Study
                                                                                                               Section A: Engineering and Economic Guidelines

                             Survey Form for Basis Information on Area-Wide Network (Provincial Highway, Being Updated Case)



          Date:              (day)__(month)__(year)         Inquirer Name
                  Road Code      1100       Name of Route         Road Condition of Tangxing to Leye Section of Provincial Highway S20341 (being updated case)
                                                                                               Number of Annu. Maint.        Toll                                 Mixed
Region Code         Origin    Destination      Length       Class   Completion      Terrain                                          Pavement Seasonal Off Days
                                                                                            traffic accident Expense         Rate                                 Traffic
                                                 Km               (month)__(year)__                      CNY 10,000 CNY/Km/pcu              Total During Harvest MTE

          2101 Tangxing       Lingzhan
          2102 Lingzhan       Xiajia
Lingyun
          2103 Xiajia         Lingyun
          2104 Lingyun        Bali
      2105 Bali               Gentian
 Leye 2106 Gentian            Wucheng
          2107 Wucheng        Leye


                  Total




                                                            CPCS Transcom – Louis Berger International Consortium
   39 of 76                                                                                                Improved Guidelines for Road Network Feasibility Study
                                                                                                                Section A: Engineering and Economic Guidelines

                               Survey Form for Basis Information on Area-Wide Network (Provincial Highway, Planning Case)



          Date:              (day)__(month)__(year)         Inquirer Name
                  Road Code      1100       Name of Route             Road Condition of Tangxing to Leye Section of Provincial Highway S20341 (planning case)
                                                                                                Number of Annu. Maint.        Toll                                 Mixed
Region Code         Origin    Destination      Length       Class      Completion    Terrain                                          Pavement Seasonal Off Days
                                                                                             traffic accident Expense        Rate                                  Traffic
                                                 Km                 (month)__(year)__                     CNY 10,000 CNY/Km/pcu              Total During Harvest MTE

          2101 Tangxing       Lingzhan
          2102 Lingzhan       Xiajia
Lingyun
          2103 Xiajia         Lingyun
          2104 Lingyun        Bali
      2105 Bali               Gentian
 Leye 2106 Gentian            Wucheng
          2107 Wucheng        Leye


                  Total




                                                        CPCS Transcom – Louis Berger International Consortium
 40 of 76                                                                                                   Improved Guidelines for Road Network Feasibility Study
                                                                                                                 Section A: Engineering and Economic Guidelines

                                Survey Form for Basis Information on Area-Wide Network (County Road, Current Case)



        Date:              (day)__(month)__(year)         Inquirer Name
                Road Code      1100       Name of Route                                Road Condition of Baise to Napo Section (current case)
                                                                                                 Number of Annu. Maint.      Toll                                Mixed
Region Code       Origin    Destination      Length       Class      Completion       Terrain                                         Pavement Seasonal Off Days
                                                                                              traffic accident Expense       Rate                                Traffic
                                              Km                  (month)__(year)__                        CNY 10,000 CNY/Km/pcu              Total During Harvest MTE

        4101 Baise          Longhe
Baise
        4102 Longhe         Panshui
Jingxi 4103 Panshui         Kuiwei
        4104 Kuiwei         Longhe
Napo
        4105 Longhe         Napo


                Total




                                                      CPCS Transcom – Louis Berger International Consortium
 41 of 76                                                                                                Improved Guidelines for Road Network Feasibility Study
                                                                                                              Section A: Engineering and Economic Guidelines

                            Survey Form for Basis Information on Area-Wide Network (County Road, Being Updated Case)



        Date:              (day)__(month)__(year)         Inquirer Name
                Road Code      1100       Name of Route                         Road Condition of Baise to Napo Section (being updated case)
                                                                                             Number of Annu. Maint.       Toll                               Mixed
Region Code       Origin    Destination      Length       Class      Completion   Terrain                                         Pavement Seasonal Off Days
                                                                                          traffic accident Expense       Rate                                Traffic
                                              Km                  (month)__(year)__                     CNY 10,000 CNY/Km/pcu             Total During Harvest MTE

        4101 Baise          Longhe
Baise
        4102 Longhe         Panshui
Jingxi 4103 Panshui         Kuiwei
        4104 Kuiwei         Longhe
Napo
        4105 Longhe         Napo


                Total




                                                      CPCS Transcom – Louis Berger International Consortium
 42 of 76                                                                                                   Improved Guidelines for Road Network Feasibility Study
                                                                                                                 Section A: Engineering and Economic Guidelines

                               Survey Form for Basis Information on Area-Wide Network (County Road, Planning Case)



        Date:              (day)__(month)__(year)         Inquirer Name
                Road Code      1100       Name of Route                               Road Condition of Baise to Napo Section (planning case)
                                                                                                 Number of Annu. Maint.      Toll                                Mixed
Region Code       Origin    Destination      Length       Class      Completion       Terrain                                         Pavement Seasonal Off Days
                                                                                              traffic accident Expense      Rate                                 Traffic
                                              Km                  (month)__(year)__                        CNY 10,000 CNY/Km/pcu              Total During Harvest MTE

        4101 Baise          Longhe
Baise
        4102 Longhe         Panshui
Jingxi 4103 Panshui         Kuiwei
        4104 Kuiwei         Longhe
Napo
        4105 Longhe         Napo


                Total




                                                      CPCS Transcom – Louis Berger International Consortium
43 of 76                                                                                              Improved Guidelines for Road Network Feasibility Study
                                                                                                           Section A: Engineering and Economic Guidelines

                                           Form of OD Survey for Motorized Vehicle (National Highway)

Survey Location:            Direction:________     Survey Time:   (month) (day)       (year) From     (hour) to   (hour) Inquirer:

 No. of                                                Purchase   Current Authorizing              Actual          Origin             Destination
                   Owner            Vehicle Purpose      Price     Value               Cargo
Vehicle Type                                                                Capacity              Loading                                            Remarks
             (enterprise/private) (operation/nonprofit) (CNY       (CNY               Category
License                                                                    (ton/seat)          (ton/person) City/County/TownshipCity/County/Township
                                                        10,000)   10,000)




   Note: Cargo categories and vehicle types are as follows:
 Coding       1              2              3            4            5           6           7              8               9           10         11       12
                                                                                                                                      Livestock
                                                         Light     Medium     Heavy                                    Agricultural
                Car         Minibus          Bus                                            Trailer     Motorcycle                    Powered     Bicycle   Others
 Vehicle                                                 truck      truck     truck                                     Tri-wheel
                                                                                                                                       Vehicle
  Type
               <=11                          >20
                          12-20 seats                   <=2.5T     2.5-7T      >7T
               seats                        seats
  Cargo                                    Metallic                Building                             Nonmetallic
               Coal     Petrochemicals                   Steel                Cement        Timber                       Fertilizer     Salt       Corn     Others
Categories                                   Ore                   Material                                Ore




                                                 CPCS Transcom – Louis Berger International Consortium
 44 of 76                                                                                            Improved Guidelines for Road Network Feasibility Study
                                                                                                          Section A: Engineering and Economic Guidelines

                                 Form of OD Survey for Motorized Vehicle (Provincial Highway and County Road



    (100% sampling for provincial & county road; 10% vehicles to be surveyed for national highway. Buses surveyed in passenger transport stations shall not be
                                                                         surveyed again)

  Survey Location:                    Direction:________         Survey Time:    (month) (day)       (year) From     (hour) to      (hour) Inquirer:

  No. of                                                Purchase    Current Authorizing              Actual          Origin             Destination
                    Owner            Vehicle Purpose      Price      Value               Cargo
 Vehicle Type                                                                 Capacity              Loading                                            Remarks
              (enterprise/private) (operation/nonprofit) (CNY        (CNY               Category
 License                                                                     (ton/seat)          (ton/person) City/County/TownshipCity/County/Township
                                                         10,000)    10,000)




                                      Number of                       Source of Money to Buy Vehicle (CNY)                      Annual
                                      Household       Household                                               Annual Revenue
                Name of Owner                                        Loan from      Loan from                                 Maintenance                     Remarks
                                      Members       Income (CNY)                                    Own Money     (CNY)
                                                                       Bank           Friend                                 Expense (CNY)
                                      (persons)
   Freight
   Vehicle                                                                                                                                             Axle loading data of
                                                                                                                                                       vehicle passed through
                                                                                                                                                       survey points shall be
                                                                                                                                                       printed out at weighing
                                                                                                                                                       station.

     Note: Cargo categories and vehicle types are as follows:
 Coding        1              2              3            4             5          6            7          8              9             10         11            12
                                                                                                                                     Livestock
                                                         Light       Medium      Heavy                               Agricultural
               Car          Minibus          Bus                                           Trailer     Motorcycle                    Powered     Bicycle       Others
 Vehicle                                                 truck        truck      truck                                Tri-wheel
                                                                                                                                      Vehicle
  Type
              <=11
                          12-20 seats     >20 seats     <=2.5T       2.5-7T       >7T
              seats
  Cargo                                     Metallc                  Building                          Nonmetallic
               Coal     Petrochemicals                   Steel                   Cement    Timber                     Fertilizer        Salt      Corn         Others
Categories                                   Ore                     Material                             Ore




                                                   CPCS Transcom – Louis Berger International Consortium
45 of 76                                                                                                    Improved Guidelines for Road Network Feasibility Study
                                                                                                                 Section A: Engineering and Economic Guidelines


                                   Form of OD Survey for Motorized Vehicle (for passenger transport station)

Name of Station:                                 Survey Time:      (month) (day)               (year) From      (hour) to      (hour) Recorder:

 No. of                                                 Purchase       Current                                        Origin                  Destination
                   Owner            Vehicle Purpose       Price         Value          Rated     Carrying
Vehicle Type                                                                                                                                                           Remarks
             (enterprise/private) (operation/nonprofit)   (CNY          (CNY           Seats     (person)     City/County/Township        City/County/Township
License
                                                         10,000)       10,000)




            Total Passengers       School         On/Off Duty           Hospital               Business         Visit Family          Tour            Others
                                                                                                                                                                       Remarks
                 person            person           person              person                  person            person             person           person
Passenger
 Vehicle




              Name of Owner        Number of                           Source of Money to Buy Vehicle (CNY)
                                   Household       Household                                                             Annual Revenue     Annual Maintenance
             (company name if                                      Loan from            Loan from                                                                      Remarks
                                   Members       Income (CNY)                                             Own Money          (CNY)            Expense (CNY)
Passenger         public)                                            Bank                 Friend
                                   (persons)
 Vehicle




    Note: Cargo categories and vehicle types are as follows:
 Coding       1            2            3            4             5               6              7             8               9           10         11         12
                                                                                                                                         Livestock
                                                    Light       Medium           Heavy                                    Agricultural
              Car        Minibus       Bus                                                      Trailer     Motorcycle                   Powered     Bicycle     Others
 Vehicle                                            truck        truck           truck                                     Tri-wheel
                                                                                                                                          Vehicle
  Type
              <=11        12-20
                                    >20 seats     <=2.5T        2.5-7T           >7T
              seats       seats




                                                CPCS Transcom – Louis Berger International Consortium
46 of 76                                                                                      Improved Guidelines for Road Network Feasibility Study
                                                                                                   Section A: Engineering and Economic Guidelines

                                                              Traffic Survey Form

Survey Location:                  Travel Direction:________    Survey Time:        (month) (day)     (year) From      (hour) to    (hour) Recorder:

 Coding        1          2            3            4             5            6          7            8             9            10         11       12
                                                                                                                               Livestock
                                                               Medium     Heavy                                 Agricultural
              Car       Minibus       Bus       Light truck                             Trailer    Motorcycle                  Powered     Bicycle   Others
Vehicle                                                         truck     truck                                  Tri-wheel
                                                                                                                                Vehicle
 Type
                        12-20                    <=2.5T        2.5-7T         >7T
           <=11 seats               >20 seats
                        seats
           Mark “正”

 __:00
   -
 __:00




 __:00
   -
 __:00




 __:00
   -
 __:00




 __:00
   -
 __:00




                                            CPCS Transcom – Louis Berger International Consortium
47 of 76                                                                                       Improved Guidelines for Road Network Feasibility Study
                                                                                                    Section A: Engineering and Economic Guidelines

                            Questionnaire for Vehicle Operators-To be used with Traffic Movement Surveys

We represent the PRC’s MOC-managed Area Wide Road Network Improvement Program financed by the Asian Development Bank. We would like to
know how future road improvements would affect you. Your answers can help us design better projects to improve the well being of the Prefecture’s
population. The questionnaire is anonymous.

Road Corridor_________________________ Location _____________________________ (rural/ urban)




    1. Which road do you use most often?                                              6. Who usually pays for the vehicle repair?
          a. current road                                                                   a. driver    7
          b. other if other, road name origin___________,                                   b. owner/boss       8
              destination___________
                                                                                      7. How much do you pay for your vehicle repairs due to bad
    2. How many times did you use that road during last month?                           road conditions?
          a. 1-4                                                                             a. per week Yuan.__________
          b. 4-8                                                                             b. per month Yuan._________
          c. 8-15                                                                            c. per year Yuan. ___________
          d. 15-20
          e. 20+                                                                      8. How many vehicles do(es) you/ your boss own?
                                                                                            a. 1-5
    3. How far do you drive per journey?                                                    b. 6-20
          a. <50km                                                                          c. 21-50
          b. 50-200km                                                                       d. 50+
          c. 200+km
                                                                                      9. How are freight rates set? Does some person or
    4. You are:                                                                          organization
          a. owner of vehicle     7                                                     set your fares or freight rates?
          b. leaseholder of vehicle   5                                                       a. yes, explain
          c. leaseholder of government           5                                            b. no
          d. work for government    9
          e. hired to drive vehicle 6                                                 10. Do road conditions affect your fees?
                                                                                              a. yes
    5. What vehicle leasing fees do you pay per month?                                        b. no
       Yuan.______________
                                                                                      11. How much do you earn per month by driving this vehicle?
                                                                                           Yuan.___________________




                                               CPCS Transcom – Louis Berger International Consortium
48 of 76                                                                               Improved Guidelines for Road Network Feasibility Study
                                                                                            Section A: Engineering and Economic Guidelines

                                                                                      f.   on electricity _____________ Yuan
   12. How many stops do you make to pick up passengers                               g.   on fuel, wood or coal __________ Yuan
       _________ pick up freight _________?                                           h.   on hospital or clinic services ________ Yuan
                                                                                      i.   on medicines __________ Yuan
   13. Do you not stop for passengers along your route because                        j.   on other grocery items ___________ Yuan
       you are not allowed due to regulations? ___________                            k.   on construction materials ________ Yuan
       (yes/no)    Or do you not stop because not enough                              l.   on transportation ______________Yuan
       passengers will get on your vehicle at intermediate stops?
       _____________ (yes/no)                                                  16. How many members are there in your household?
                                                                                   Total________ # M__________ #F__________
   14. If you make stops, how many passengers do you get per
       stop     that  is   not  your   primary    (i.e.  final)                17. What are the annual expenditures of your household?
       destination?_______________(number of passengers)                              a. above 2,400 Yuan __________________
                                                                                      b. Between 1,700 and 2,400 Yuan ______________
   15. What are the annual expenditures of your household?                            c. Between 900 and 1,700 Yuan _______________
          a. on school __________ Yuan                                                d. Between 625 and 900 Yuan _________________
          b. on farm inputs (i.e., like fertilizer, pesticides, plastic,              Less than 625 Yuan ___________________
              and tools) ________ Yuan
          c. on food from outside your own farm ____________
              Yuan
          d. on clothes ______________ Yuan
          e. on cigarettes and alcohol _____________ Yuan




                                             CPCS Transcom – Louis Berger International Consortium
    49 of 76                                                                                            Improved Guidelines for Road Network Feasibility Study
                                                                                                             Section A: Engineering and Economic Guidelines

                                                                          Survey for VOC
                                                                           (Year of    )

    Location Name:                Date: (month) (day) (year)        From    (hour) to     (hour)       Inquirer:

                          1        2        3       4        5        6        7             8            9           10           11           12         13
                                                                                                                                             Livestock
                                                   Light   Medium   Heavy               Agricultural                            Tri-wheel                          Remarks
                         Car     Minibus   Bus                               Trailer                   Tractor     Motorcycle                powered     Bicycle
               Vehicle                             truck    truck   truck                Vehicle                                motorcycle
                                                                                                                                              vehicle
                Type
                          <12    12-19     >19
                                                   <2.5T   2.5-7T    >7T
                         seats   seats     seats
   No. of
  vehicle
  license
   Fuel
 expense

  Repair
 expense
   Road
maintenance
    fee
   Other
 taxations

  Others


   total




                                                   CPCS Transcom – Louis Berger International Consortium
50 of 76                                          Improved Guidelines for Road Network Feasibility Study
                                                       Section A: Engineering and Economic Guidelines


GUIDELINE FOR DESIGN OF ENGINEERING PROPOSAL

   Current Design Specifications for Highway Engineering

   (clxix) A standardized system for the highway engineering industry has been officially established in
             China since 1981. After more than two decades of development, there were a total of 62
             specifications for highway engineering by the end of 2001, of which 34 specifications were
             developed from 1956-1990, with the remaining 28 specifications developed between 1990-
             2001. The main contents of the newer specifications refer to environmental protection, new
             technologies, new materials, new techniques and quality inspection.
   (clxx) The development process for specifications increasingly shows the following work features
             becoming more detail-oriented; shorter cycles; prolific contents; wider coverages; improved
             theories; updated technologies; and an apparent link to international customs.
   (clxxi) To adapt to this new situation, MOC began to develop new standards in 2002 and issued the
             new Standard System for Highway Engineering (JTG A01-2002) in July 2002. In the same
             year, MOC began to organize task forces to revise Technical Standards for Highway
             Engineering (JTJ001-97) which was implemented on January 1, 1998 to summarize
             experiences obtained in highway construction process since 1997. This effort was based on
             research from twelve key technologies and references to relevant international standards and
             advanced technologies. The revised Technical Standards for Highway Engineering (JTG
             B01-2003) identifies functions and relevant technical indicators for various classes of roads in
             greater detail and presents the guidelines and construction concepts for focusing on safety,
             environmental protection and people in priority highway construction. This plays an essential
             instructive role in accelerating the highway construction process, and enhancing sound,
             coordinated and sustainable development of the highway industry.
   (clxxii) Other standards and specifications were revised subsequently by MOC to be consistent with
             the new Technical Standards for Highway Engineering (JTG B01-2003) which was
             promulgated on January 29, 2004. In addition, Universal Specifications for Highway
             Bridges and Culvert Design (JTG D60-2004) was issued on June 28, 2004 and
             implemented on October 1 2004, Specifications for Highway Tunnel Design (JTG D70-
             2004) was issued on July 9, 2004 and implemented on November 1, 2004, Safety Audit
             Guidelines for Highways (JTG/T B05-2004) was issued on September 1, 2004 and
             implemented on November 1, 2004, and Traffic Engineering Design Specifications for
             Highway Tunnels (JTG/T D71-2004) was issued on December 14, 2004 and implemented
             on December 31, 2004.
   (clxxiii) With the rapid development of the highway industry in China, abundant design experiences
             have been accumulated on varying aspects of highway construction and management. As a
             result of these extensive new experiences, construction, design and management levels have
             improved and design concepts have been updated. Relevant design standards and
             specifications have been increasingly revised and improved, forming a very high standard
             and specification system for highway engineering and design that deals with these issues in
             the Chinese context. These sets of standards and specifications are strictly followed by
             highway design staff in China to carry out design work. Generally speaking, relevant
             standards and specifications are more refined on the aspect of engineering design, however
             further studies and exploration shall be undertaken on aspects of road safety and the concept
             of prioritizing people.
   (clxxiv) It shall be noted that, to achieve the purpose of reducing traffic accidents and subsequent
             extents of harm, the safety audit shall be carried out for feasibility studies, design outcomes
             and highway operations from perspective of road user. Thus, the Safety Audit Guidelines for
             Highways (JTG/T B05-2004) was issued on September 1, 2004 by MOC to instruct relevant
             staff to strengthen safety audits and management in highway design, construction, and
             operation management.
   (clxxv) Common standards and specifications used in highway engineering design are as follows:




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                                             List of Current Standards and Specifications for Highway Engineering


No.       Coding                                                 Title                                                                        Prepared By

                                                                                                                   Highway Department of MOC, Highway Engineering Committee of China
1      JTG B01-2003                          Technical Standards for Highway Engineering
                                                                                                                         Association for Engineering Construction Standardization
2       JTJ 002-87                                  Glossaries of Highway Engineering                                             Highway Planning and Design Institute
3       JTJ 003-86                        Standards for Natural Division of Highway Engineering                                   Highway Planning and Design Institute
4       JTJ 004-89                    Specifications of Anti-Seismic Design for Highway Engineering                               Highway Planning and Design Institute
                        Technical Specifications of Environmental Impact Assessments for Highway Construction
5       JTJ 005-96                                                                                                                  Highway Research Institute, MOC
                                                                   Project
6       JTJ/T 006-98                 Specifications of Environmental Protection Design for Highways                        The First Highway Survey & Design Institute of China
7        JTJ 011-94                             Specifications of Highway Alignment Design                                 The First Highway Survey & Design Institute of China
8      JTG D40-2002                Specifications of Highway Cement and Concrete Pavement Design                                  Highway Planning and Design Institute
9      JTG D30-2004                             Specifications of Highway Subgrade Design                                 The Second Highway Survey & Design Institute of China
10       JTJ 014-97                        Specifications of Highway Asphalt Pavement Design                                      Highway Planning and Design Institute
11       JTJ 015-91                         Specifications of Highway Reinforced Earth Design                                 Shanxi Provincial Communications Department
12       JTJ 016-93     Technical Specifications for Design and Construction of Fly Ash Embankment of Highways                Chongqing Highway Research Institute of MOC
                           Technical Specifications for Design and Construction of Embankment on Soft Earth
13      JTJ 017-96                                                                                                         The First Highway Survey & Design Institute of China
                                                                 Foundation
14       JTJ 018-97                             Specifications for Highway Drainage Design                                                 Tongji University
15      JTJ/T 019-98     Technical Specifications for Application of Geotextile Materials in Highway Engineering              Chongqing Highway Research Institute of MOC
16     JTG D60-2004                  Universal Specifications for Highway Bridge and Culvert Design                              Highway Planning and Design Institute
17       JTJ 022-85         Specifications for Highway Brick and Stone Concrete Bridge and Culvert Design                        Highway Planning and Design Institute
                           Specifications of Highway Reinforced Concrete and Prestressed Bridge and Culvert
18     JTG D62-2004                                                                                                               Highway Planning and Design Institute
                                                                   Design
19       JTJ 024-85                 Specifications for Highway Bridge and Culvert Foundation Design                                Highway Planning and Design Institute
20       JTJ 025-86         Specifications for Highway Bridge and Culvert Steel and Wood Structures Design                         Highway Planning and Design Institute
21     JTG D70-2004                              Specifications for Highway Tunnel Design                                     Chongqing Highway Research Institute of MOC
22     JTJ 026.1-1999               Specifications for Highway Tunnel Ventilation and Lighting Design                         Chongqing Highway Research Institute of MOC
23       JTJ 027-96                      Specifications for Highway Cable Stayed Bridge Design                                Chongqing Highway Research Institute of MOC
24    JTG/T D71-2004                Specifications for Traffic Engineering Design of Highway Tunnels                        Chongqing Transport Research and Design Institute
25    JTG/T B05-2004                               Guideline for Safety Audit of Highway                                            Chelbi Engineering Consultants Inc.
26     JTG F40-2004                  Specifications of Construction Technology for Asphalt Pavement                                  Highway Research Institute, MOC
27     JTG F30-2003          Specifications of Construction Technology for Cement and Concrete Pavement                              Highway Research Institute, MOC
28       JTJ 033-95                  Specifications of Construction Technology of Highway Subgrade                       The First Highway Engineering General Company of MOC
29      JTJ 034-2000             Specifications of Construction Technology of Base Course of Pavement                                Highway Research Institute, MOC
30       JTJ 035-91            Specifications of Construction Technology of Reinforced Earth Engieering                       Shan’xi Provincial Communications Department
31       JTJ 036-98             Specifications of Construction Technology of Modified Asphalt Pavement                               Highway Research Institute, MOC
32    JTJ/T037.1-2000       Rules of Construction Technology of Slipform , Cement and Concrete Pavement                              Highway Research Institute, MOC
33      JTJ041-2000             Specifications of Construction Technology of Highway Bridge and Culvert                  The First Highway Engineering General Company of MOC
34       JTJ 042-94                   Specifications of Construction Technology of Highway Tunnels                            Chongqing Highway Research Institute of MOC
35       JTJ 051-93                                  Rules of Highway Geotextile Tests                                               Highway Research Institute, MOC
36      JTJ 052-2000          Rules for Asphalt and Asphalt Mixed Materials Tests in Highway Engineering                             Highway Research Institute, MOC
37       JTJ 053-94                   Rules for Cement and Concrete Tests in Highway Engineering                          The Second Highway Survey & Design Institute of China
38       JTJ 054-94                       Rules for Stone Materials Test in Highway Engineering                           The Second Highway Survey & Design Institute of China
39       JTJ 055-83                           Rules for Metallic Test in Highway Engineering                              The Second Highway Survey & Design Institute of China
40       JTJ 056-84               Rules of Operation of Water Quality Analysis in Highway Engineering                      The First Highway Survey & Design Institute of China




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No.       Coding                                               Title                                                                          Prepared By

41       JTJ 057-94               Rules of Stability Test for Inorganic Binder in Highway Engineering                                Highway Research Institute, MOC
42     JTJ 058-2000                         Rules of Aggregate Test in Highway Engineering                                           Highway Research Institute, MOC
43       JTJ 059-95                   Rules of On-Site Test of Highway Subgrade and Pavement                                         Highway Research Institute, MOC
44      JTJ/T 060-98             Rules of Test for Geotextile Mixed Materials in Highway Engineering                         Chongqing Highway Research Institute of MOC
45       JTJ 061-99                     Specifications for Highway Reconnaissance and Survey                               The First Highway Survey & Design Institute of China
46     JTG C30-2002       Specifications of Hydraulic Reconnaissance and Design in Highway Engineering                      Hebei Provincial Highway Planning Design Institute
47       JTJ 063-85                 Specification for Highway Tunnel Reconnaissance and Survey                           The Second Highway Survey & Design Institute of China
48       JTJ 064-98              Specifications of Geological Reconnaissance in Highway Engineering                        The First Highway Survey & Design Institute of China
49       JTJ 065-97                Specifications of Photographic Measuring in Highway Engineering                       The Second Highway Survey & Design Institute of China
50      JTJ/T 066-98                 Specifications of Measuring with GPS in Highway Engineering                           The First Highway Survey & Design Institute of China
51       JTJ 071-98              Standards for Review and Evaluation of Highway Engineering Quality                                  Highway Research Institute, MOC
52       JTJ 073-96                       Specifications of Highway Maintenance Technology                         Highway Management Bureau of Zhejiang Communications Department
53     JTG H30-2004                        Rules of Safe Operation of Highway Maintenance                                       Shanghai Highway Administration Division
54     JTG H40-2002        Guideline Rules for Preparation of Budgetary Estimate of Highway Maintenance                     Quotation Station of Highway Engineering of MOC
                          Specifications of Design and Construction Technology for Traffic Safety Facility of
55      JTJ 074-94                                                                                                                  Highway Research Institute, MOC
                                                                Expressway
56      JTJ 075-94              Standards of Review and Evaluation of Highway Maintenance Quality                   Highway Management Bureau of Henan Communications Department
57      JTJ 076-95                 Rules of Construction Safety Technology in Highway Engineering                          Heilongjiang Road and Bridge Construction Company
58      JTJ 077-94                Specifications for Construction Supervision of Highway Engineering                  Construction Supervision Station of Highway Engineering of MOC
59     JTJ/T 0901-98    Specifications of Categories and Diagrams of 1:1,000,000 Digital Communication Map                         Standard Measuring Institution of MOC
60       GBJ 22-87                          Specifications for Factory and Mine Road Design                                        Highway Planning and Design Institute
61       GBJ 92-96       Specifications for Construction and Inspection and Acceptance of Asphalt Pavement                           Highway Research Institute, MOC
                       Specifications for Construction and Inspection and Acceptance of Cement and Concrete
62       GBJ 97-87                                                                                                           Zhejiang Provincial Communications Department
                                                                 Pavement
63      GBJ 124-88                           Standards for Highway Engineering Glossaries                                         Highway Planning and Design Institute
64     GBJ 50162-92                           Standards for Highway Engineering Drawing                                           Highway Planning and Design Institute
65    GB/T50283-1999        Universal Standards for Structural Reliability Design of Highway Engineering                          Highway Planning and Design Institute




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   Future Development

   (clxxvi) Generally speaking, relevant standards and specifications on aspects of engineering design
             have been modified and improved gradually based on the new system. The design theories
             and technologies that are a part of the new system are extremely well-matched to the
             Chinese environment, having been developed and refined in that context. In particular,
             environmental protection and construction management have been added to the design in
             recent years. Improvement of design concepts plays an important role in promoting design
             and management of highway engineering in China. However, there is still considerable work
             to be done on aspectd of road safety. The Safety Audit Guidelines for Highways (JTG/T B05-
             2004) issued on September 1, 2004 by MOC could be used to carry out a safety audit for
             feasibility studies, design results and highway operation. This has the potential to improve
             safety standards for highway design and operation. Nevertheless, it is a recommended
             industrial standard, meant to be used on a voluntary base.
   (clxxvii) The safety audit system shall be strengthened in future feasibility studies, design, and
             operation management in order to accumulate relevant experiences and lessons for the
             implementation of the Safety Audit Guidelines for Highways as a mandatory industrial
             standard as soon as possible.

SAFETY AUDIT GUIDELINES FOR HIGHWAYS

   Status Quo of Safety Audits in China

   (clxxviii) Technical Standards for Highway Engineeirng (JTG B01-2003) issued on January 29,
              2004 by MOC presents the guided construction concepts of safety, environmental protection
              and people as a priority in highway engineering design and construction. To facilitate its
              implementation, the Safety Audit Guidelines for Highways (JTG/T B05-2004) was issued
              on September 1, 2004 by MOC, and is a recommended industrial standard, meant to be used
              on a voluntary basis by the highway industry.
   (clxxix) During the process of developing the Safety Audit Guidelines for Highways, the
              compilation team carried out a safety audit for the northerm section expressway of Jingzhu
              Expressway in Guangdong Province based on case studies. The results of this were some
              recommendations on improving road safety which have been effective in promoting operation
              safety and reducing traffic accidents.
   (clxxx) After the issuance of Safety Audit Guidelines for Highways through October 2005, there
              were three expressways that carried out safety audits based on this Guideline. These are
              Chongqing to Wanzhou Expressway, Expressway in Chongqing Section of Shanghai to
              Chengdu National Trunk Highway and Longchuan to Meizhou Expressway in Guangdong
              Province.
   (clxxxi) A highway safety audit should be carried out for more and more expressways, with more
              focus on this issue by transport authorities at each level. Some technical measures to
              improve safety in highway design, construction and operation will be adopted gradually.
   (clxxxii) The following sections mainly address contents of Safety Audit Guidelines for Highways.

   Feasibility Study Stage

   (clxxxiii) Safety audits in the feasibility study stage shall be carried out from three aspects, technical
              standards, technical proposals, and environmental impact.

           Technical Standard

   (clxxxiv)    Identification of technical standards in the feasibility study stage will not only determine
            the construction scale, but also have an important impact on road safety after project
            completion.




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   (clxxxv) The determination of technical standards for a proposed project shall be based on traffic
            forecasts and regulations in Technical Standards for Highway Engineering. For a region
            where the economy shows rapid growth, resulting in rapid increases in traffic demand and
            development, if technical standards for proposed highway projects are relatively
            conservative, relevant indicators for design speed in different terrains could likely be low and
            speed differences between different road sections would be great. In addition, the type of
            cross section of subgrade and widths of carriageway, hard shoulder, median separator and
            margin could not accommodate a rapid development of traffic. Thus, the service level would
            decrease rapidly during the operation period, which could create a hazardous road
            environment. Therefore, the technical class of proposed highway projects shall be assessed
            from the viewpoint of being consistent in travel safety based on economic development,
            population distribution, traffic forecast, traffic composition and the role of the proposed project
            in the network, etc.

            Technical Proposal

   (clxxxvi)     After determining technical standards for the proposed project, the adequacy of its
            technical proposal would also have an impact on travel safety to a certain extent.
   (clxxxvii)    In some expressways that have finished post-evaluation, the phenomena of possessing
            rational technical standards and technical indicators in compliance to specification
            requirements and inconsistent cross section, profile and horizontal indicators have occurred.
            All of these can induce traffic accidents.
   (clxxxviii) According to the requirements of this Guideline, the following issues are of particular
            significance. With regard to technical indicators, the indicators of both horizontal and
            longitudinal alignments shall be consistent with design speed. The aspect of OD, which links
            the mode of the proposed project with relevant facilities, as well as traffic organization, shall
            be determined based on traffic forecast results. With respect to the arrangement of grade
            intersections and interchanges, types of and distances between grade intersections and
            interchanges shall be assessed based on terrain, network condition, intersecting roads and
            traffic volume, to reduce interference and disturbance to traffic as much as possible. For
            rehabilitation projects, traffic organization during construction periods shall be assessed.

            Environmental Impact

   (clxxxix)    Climate, unfavorable geography and wildlife in the proposed project area would have a
            certain impact on road safety and shall be assessed to reduce these impacts. More attention
            shall also be paid to environmental protection.

   Design Stage

   (cxc)    Design quality has a decisive impact on the operational safety of a road project. Sometimes,
            several consequences cannot be mitigated during the operation period. Therefore, more
            detailed requirements are provided for a safety audit in the design stage in this Guideline.

            Overall Evaluation

   (cxci)  Safety audits on aspects of design conformity, consistency of operating speed and
           consistency of design speed with operating speed are required to be carried out. The safety
           audit of design results in the design stage is conducted mainly to assess design conformity to
           current standards and specifications, including the assessment of the rationality of operating
           speed differences between adjacent road sections and assessment to differences between
           design speed and operating speed on one road section.
   (cxcii) Overall, safety audits in the design stage are very important and may enable the avoidance of
           features that may conform to relevant specifications, yet prove to be hazardous in other
           respects.




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             Alignment

   (cxciii) A safety audit related to alignment is mainly for road sections at which the difference between
             design speed and operating speed is over 20km/h.
   (cxciv) The Guideline provides relevant assessment standards for the radius of the horizontal curve,
             transit curve and minimum length of the straight line of the alignment plane, all of which shall
             be used to compare design results of any recommendation of technical measures to improve
             operational safety.
   (cxcv) Calculation methods and assessment standards for stopping distances of cars and trucks are
             provided in the Guideline. Relevant recommended technical measures are put forward for
             road sections which do not conform to this Guideline.
   (cxcvi) The profile of the alignment shall be assessed according to the requirements of the
             Guideline, which provides a specific calculation method and assessment standard for the
             average slope grade, slope length and radius of vertical curve of the profile, to be compared
             with the Standard for safety audit puposes.
   (cxcvii) In the assessment of a cross section of the alignment, the Guideline requires safety audits on
             four aspects; width of cross section of subgrade; climbing lane; emergency stopping belt; and
             emergency escape lane. Also, necessity and distance of the positions of the climbing lane,
             emergency stopping belt and emergency escape lane shall all be assessed and relevant
             recommended measures shall be provided.
   (cxcviii) The combined slope degree of the alignment shall be assessed to improve travel safety for
             freight vehicles; relevant assessment standards are provided.
   (cxcix) A safety audit shall be carried out for super-elevation at potentially dangerous sites, such as
             sharp bends in the road. Calculation methods and assessment standards for super-elevation
             are also provided in the Guideline.
   (cc)      To improve operational safety of highway projects, the combinations of horizontal and
             longitudinal alignments are assessed, and relevant assessment methods and standards are
             provided in the Guideline.

             Subgrade and Pavement

   (cci)     Safety audits for subgrade and pavement are mainly focused on driving sight distance, anti-
             sliding resistance of pavement, pavement drainage design on rainy days and culvert, etc.

             Bridge

   (ccii)    Safety audits for bridges are mainly for separate bridges and major bridges.
   (cciii)   The arrangement of major bridges and separate bridges on the road often influences
             alignment design, thus, a safety audit shall be carried out for the approach lines of the bridge.
             Additionally, different disposal measures for cross sections of a major bridge shall be adopted
             due to cost reasons, as well as the faster formation of ice on bridge decks than on common
             pavement. Therefore, safety audits shall be carried out on aspects of cross sections of
             bridges, anti-collision fences, deck paving, deck drainage and arrangement of piers and
             abutments.
   (cciv)    Impacts of side wind to operation safety on the bridge deck shall be assessed if the bridge is
             located at an area that frequently experiences winds of six degrees and above.

             Tunnel

   (ccv)     As a special structure on the road, tunnel structure has a large impact on alignment.
             Therefore, assessment of consistency of type of connection between tunnel openings and
             approach lines shall be assessed. In addition, an assessment of consistency of tunnel design
             speed to operating speed at tunnel openings shall be carried out. Furthermore, such factors
             as arrangement of the cross section of a tunnel, sight distance of the tunnel curve, pavement
             and drainage facilities in the tunnel, tunnel lighting and ventilation, monitoring facilities, fire



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            control, first aid, and other aspects have large impacts on operational travel safety and shall
            be assessed according to the Guideline.

            Intersection

   (ccvi)   Intersections have a great impact on traffic organization and safety, thus safety audits shall
            be carried out on such characteristics as location of grade intersection, distance, intersecting
            angle, type, speed consistency, auxiliary lane, sight distance, traffic island and other
            management facilities. Also, the same safety audits shall be carried out for location, type,
            distance, speed consistency on the mainline and ramp lane of interchanges on expressways;
            the distance between the inlet and outlet of a ramp, numbers of lanes, length of
            accelerating/decelerating lane and diversion point of interchange ramp; arrangement of cross
            section, horizontal and longitudinal alignment, superelevation and widening design of ramps
            on interchange; as well as sight distance of diversion and confluence points of ramp and
            subgrade and pavement of mainline and ramp. Furthermore, for separate grades, safety
            audits shall be carried out on aspects of clearance, pier and sight distance, among others.

            Traffic Engineering and Roadside Facilities

   (ccvii) Traffic engineering facilities include traffic signs, marks, guidance signs, guard fences, anti-
           dazzling facilities in the median separator, toll gates, monitoring systems, service areas and
           parking areas. The design and arrangement of these elements have direct impact on vehicle
           operators. Therefore, safety audits shall be carried out for those factors.

   Operation Stage

            Assessment to Road Condition

   (ccviii) A conformity assessment shall be carried out to assess the road condition of completed
            projects based on design variations in the construction period. Also, a consistency
            assessment shall be carried out based on the actual measured operating speed to assess
            the consistency of operating speed with design speed.

            Traffic Accident Survey and Analysis

   (ccix)   Based on surveys to type, technical standards, pavement condition and traffic control mode
            of blackspots, investigations of time and weather conditions of traffic accidents, reviews of
            speed and carrying ratios of the accident vehicles, as well as analyses of accident time and
            spatial distribution, causes and forms, relevant mitigation and improvement measures shall
            be provided.

   Assessment to Low Class Road

   (ccx)   The Safety Audit Guidelines for Highways is applicable to new and/or rehabilitated
           expressways and first class highway projects, and could be used for other classes of roads
           for reference.
   (ccxi) Safety audits for low class roads shall focus on assessments in the design stage and
           operation stage. Due to typically poor vehicle condition and performance on the low class
           road, compared to those on the high class road, more attention shall be paid to adopt higher
           limit values for design standards in the design stage to avoid reducing safety standards for
           vehicle performance.
   (ccxii) In the design stage, the design evaluation staff and the employer of the project shall pay
           attention to the rationality of horizontal and longitudinal indicators of the alignment. More
           efforts shall be taken to reduce alignment slope and increase the radius of horizontal curves
           based on terrain and geological conditions. For low class roads in mountainous areas,
           relevant attention shall be paid to the drainage design of subgrade and pavement and guard



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            fence and/or guard. Also, anti-sliding design shall be considered for use on low class roads in
            the rainy season.
   (ccxiii) After completion of low class road, surveys and analyses of blackspots shall be emphasized
            to recommend any reconstruction to the blackspots and increase arrangement of traffic
            warning signs to improve the safety of low class roads.

   Safety Audit Considering Poverty Impact

   (ccxiv) In poor areas, the phenomena of a highway becoming a street, as well as mixed traffic on the
           highway, is more serious. Both road and vehicle conditions are poor. Road users and vehicle
           operators lack road safety awareness. Thus, relevant surveys and analyses regarding
           blackspots shall be emphasized to recommend any necessary reconstruction. It shall arrange
           separate piers on road sections passing through towns, install traffic warning signs and
           arrange a safety education board.


ECONOMIC EVALUATION GUIDELINE

   Evaluation for Expressway

   (ccxv) Economic evaluation for high class roads in China mainly adopts methods provided in the
           Prioritization Study of Highway Investments and Improving Feasibility Study Methodologies
           (January 1996), in which the theoretical models provided are relatively rational and
           parameters used for models are basically applicable to the Chinese context and easy to be
           revised via surveys. Relevant agencies, such as the Ministry of Construction, are organizing
           experts to modify economic evaluation parameters used for various types of construction
           projects in China. It is expected that revised evaluation models for highway construction
           projects will reflect an improvement in the understanding of the process.
   (ccxvi) Due to more complex calculations for indirect economic benefits and social benefits accrued
           by highway construction projects and the large amount of data required to be surveyed,
           generally, only direct economic and social benefits produced by the project are assessed in
           the feasibility study stage.

   Evaluation of the Distribution of Benefits and Poverty Impacts

   (ccxvii) Since the 1990s, ADB has undertaken a number of TA studies for construction projects in the
            highway, irrigation and railway industries in China, and has carried out relatively in-depth
            studies in social impacts and poverty impacts resulting from the projects in both the
            construction period and the operation period. Iit has also developed relevant guidelines for
            social impact assessment, resettlement plans and poverty monitoring, among other topics. In
            the future, main evaluation methods and approaches used by ADB to assess social impact,
            resettlement and the poverty impact shall be introduced and integrated by an economic
            evaluation method in the feasibility study stage to analyze indirect social benefits produced
            by proposed highway construction projects, both quantitatively and qualitatively.

           Introduction and Motivation

   (ccxviii) The objectives and task of a Distribution Analysis (DA) is broken down into three interlinked
             analyses. This conforms to the ADB requirements set forth by its “Guidelines for the
             Economic Analysis of Projects”, in particular Appendices 25 and 26. These guidelines,
             updated by recent work and ADB consensus, are followed throughout these Guidelines, and
             are a required part of the Economic Analysis of Road Projects, and are also designed to take
             into account the effects of analysing road network improvements. The three main objectives
             of a typical DA are:
             • An analysis that distributes a project’s net benefits among different categories of
                  beneficiaries (identified in the Social and Poverty Analysis;


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                     •
                     An analysis of the structural constraints to the participation of the poor in the improved
                     road network and the recommendation of actions and complementary activities that
                     would enhance the poverty reduction effect of a project based on the results of these
                     analyses;
               • A poverty impact analysis that estimates the proportion of the net benefits likely to accrue
                     to each of the beneficiary groups, including the non-poor, the poor, and the extremely
                     poor.
       (ccxix) A good DA is done as a stepping-stone to arrive at the Poverty Impact Assessment (PIA). A
               Distribution Analysis looks at how a proposed project will affect different stakeholders – i.e.,
               those groups who will benefit from the project and those who will lose. This form of analysis
               is very flexible because stakeholders may be defined and examined by a number of different
               attributes, such as income status, social (including economic and political) roles, gender, and
               geospatial characteristics. It is also a particularly useful tool for policymakers because it
               allows them to:
               • Assess whether the likely distribution of project net benefits corresponds with the stated
                     objectives of the project1 ;
               • Evaluate the likelihood of success or failure of the project independent of traditional
                     measures such as the internal rate of return; and,
               • Examine the likely impact of policy changes on the distribution of project economic
                     impacts2.
       (ccxx) Policymakers need to understand the socio-political implications of proposed projects in order
               to better assess the likelihood of their successful implementation and sustainability. Project
               sustainability is heavily affected by how stakeholders expect to gain or lose over the near and
               long term. If an influential group is expected to bear the burden of economic costs resulting
               from the project, they likely will attempt to hinder its implementation. Project implementers
               need to be aware of, and be prepared to tackle, the risk that the losing stakeholders will
               mobilize to oppose the project3.
       (ccxxi) It is often the case that the impact of project costs falls on the government budget, and debt
               burden is a major factor determining an investment’s sustainability. Because of this,
               policymakers must determine if a project’s fiscal impact is consistent with the ability of the
               public sector to finance such activities4. As such, distribution analysis can serve as a step in
               re-evaluating project affordability by clearly showing the extent to which the net cost of the
               project is borne by the government. 5

       Poverty Impact Analysis

       (ccxxii) Poverty impact analysis has become an increasingly important project assessment tool as
                the ADB’s goals were condensed in the late 1990’s into the overarching goal of reducing
                poverty. The ADB’s approval of the Poverty Reduction Strategy (PRS) in 1999 made poverty
                reduction in Asia and the Pacific the overarching objective of the organization. The
                distribution analysis serves as the critical intermediary step for calculating the expected share


1
    The Project here and in th e rest of these Guidelines refers to the the road network improvement project.
2
 Guidelines for the Economic Analysis of Projects. Asian Development Bank, 1997. Appendix 25: Distribution of Project Effects. p.
174.

3
 Jenkins, Glenn P. and Arnold C. Harberger, Cost-Benefit Analysis of Investment Decisions. Harvard Institute for International
Development, 1999. p. 14:2.

4
    Ibid. p. 14:1.

5
  Distribution Analyses and Poverty Impact Analyses are typically prepared at the end of the proposed project-preparation cycle.
The financial implication of a project for a Prefecture is initially considered in the Prefecture Budget, where the programs for the
Prefecture are presented as a whole. Thus, the government’s financial exposure due to the project as shown by the distribution
analysis should serve as an “end check,” that is the results should conform to the priors of the analysts and policymakers.



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               of project economic net benefits to the poor. The goal for poverty reduction is to maximize
               over all projects the total value of the economic net benefits that accrue to the poor.
     (ccxxiii) Conducting a distribution and poverty impact analyses requires developing insights into any
               structural constraints that surround a project. Structural constraints block a larger share of
               the benefits from going to the poor. These structural constraints can be institutional
               imperfections in markets and policy-related outcomes that can be ameliorated through
               complementary actions: these are policy and institutional remedies that can be made as
               conditions of ADB lending for the project to the country in question. ADB and MOC staff
               members are more likely to focus on shaping efficient complementary actions as a means of
               removing or alleviating these constraints if the distribution and poverty impact analyses are
               more clearly understood, better implemented, and better presented than is currently the case.
               Ultimately, when the MOC uses these Guidelines for projects not financed by the ADB, these
               policy measures will increase the share of project benefits that go to the poor, in line with the
               PRC’s policy of Poverty Reduction.
     (ccxxiv) The distribution analysis may also reveal that the project as designed does not target the
               poor as well as initially expected. A key issue is that distribution and poverty impact analyses
               are conducted during the final stages of a project’s planning and so have a very limited
               chance of having an effective bearing on its design. However, all steps should be made to
               implement the recommended Complementary Actions that flow from the Distribution and
               Poverty Impact Analysis. In addition, the “lessons learned” from the analysis should be given
               to those preparing the next cycle of projects. More synergy between the project officer of the
               project nearing implementation and those preparing the next set of projects for the country
               will improve the targeting of the poor by those future projects.
     (ccxxv) The approach designed here for PRC road projects emphasizes the following factors:
               • The importance of identifying the appropriate stakeholder groups;
               • That what is to be distributed is the Economic Net Present Value (ENPV) of the proposed
                     project and how to get the needed data from the financial analysis of the project;
               • How to go about doing the fieldwork to distribute the ENPV among stakeholder groups;
               • How to go about doing the fieldwork to discover the Structural Constraints that block
                     more of the benefits from going to the poor; and
               • That all analysts have considerable flexibility in presenting the results of a distribution
                     analysis and a poverty analysis.
     (ccxxvi) This Guideline does not present the derivation or interpretation of the Poverty Impact Ratio
               (PIR). The PIR is difficult to interpret, may behaqve in a perverse manner, and has been
               abused by project officers to show that the impact on the poor is actually greater than is the
               case. Current ADB policy has deleted the PIR from all analyses.

               Importance of Identifying Stakeholder Groups

     (ccxxvii)     There is no fixed rule as to the number of stakeholder groups; clearly there should be
              more than the three or four stakeholder groups, yet the number of groups must be
              manageable and not so numerous as to stretch the credibility of the distribution analysis.
     (ccxxviii)    For a road network improvement project, a typical set of stakeholder groups may include:
              passengers, freight shippers, vehicle owners, the Government roads authority, any private
              concessionaires, labor, the Government and the general economy. In addition, a distribution
              analysis could include land- and shop-owners that are adjacent to the road to be improved;
              this is an important stakeholder group (or two distinct groups) that perhaps should be
              included in future distribution analyses for roads projects. The list of stakeholder groups must
              be flexible and include those groups that fit the context of the project6.      The figure below
6
  For example, for a proposed rural road improvement project in the Philippines, the ADB found that it was important to further
disaggregate vehicle owners and users into the following categories: non-poor users, poor road users, very poor users, non-poor
vehicle owners, poor vehicle owners and very poor vehicle owners. These groups were further disaggregated by their participation
in the passenger or freight shipping markets, and finally identified by type of vehicle. This detail for the stakeholder groups was
decided upon after the fieldwork and a review of the survey data showed that the poor and even very poor families participated in
both sides of the market.




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                   illustrates how to view the flow of net benefits between some basic stakeholder groups for a
                   road rehabilitation project. Such flow-charts help the analyst check if important stakeholder
                   groups have been omitted, or if included groups are too inconsequential to be included in the
                   analysis.


                      Figure 1-1: Distributing Economic Benefits Between Stakeholder Groups
                                           for a Road Improvement Project


                                                                Vehicle Operating Cost Savings plus Time Savings




                                     Passenger Vehicles                                                                     Freight Vehicles




                   Transport Users                             Owners                                    Transport Users                                 Owners




         Private               Government            Private            Government             Private               Government                Private            Government




                   Theoretical Base for a Distribution and Poverty Impact Analysis

     (ccxxix) Distribution analysis is as an extension of a project’s economic analysis, since it serves to lay
              out how project-induced economic benefits and costs are allocated between different
              stakeholder groups. As such, it is necessary to understand in detail how economic benefits
              and costs are calculated in order to gain the insights needed to undertake a distribution
              analysis. Particularly, differences in the way that economic benefits and costs are calculated
              require distinct treatments within the context of the overall distribution analysis. Because
              many of the professionals reviewing a proposed project’s distribution analyses are not trained
              formally as economists, it is important that the key assumptions and calculations of each
              component of the economic analysis be explained in an explicit and straightforward manner.
     (ccxxx) This section addresses the basic theory behind a distribution analysis and the computations
              of the PIR estimates. The theory is behind any presentation of results and must be
              understood by all practitioners before performing these analyses.

                   Calculation and Distribution of Economic Costs7

     (ccxxxi) Calculating economic costs involves a standard procedure for all types of projects. First, the
              required quantities of distinct inputs (such as land, capital, and labor) for a given project are
              estimated. Second, financial unit costs are derived for each input and multiplied by the
              relevant input quantities to obtain the financial cost of each input. Then the financial costs of
              each input are aggregated to arrive at the total financial cost of the project8.


7
  The discussion of economic costs does not treat negative externalities in the text, see Appendix I. While negative externalities can
be consider project “costs,” the process of quantifying externalities is more similar to measures to estimate economic benefits. As
such, the issue of externalities, both positive and negative, is addressed within the context of the discussion of economic benefit
calculation and distribution.
8
  Financial costs are usually stated in the recipient country’s currency units. The choice of the numeraire or unit of account (i.e.,
Yuan, U.S. dollars) does not affect the outcome of the economic analysis of projects.




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     (ccxxxii)     Economic unit costs are typically estimated in two ways. Either a relevant conversion
              factor is applied to the financial unit cost of a given input to derive its economic cost, or
              adjusted border prices are used to reflect economic unit costs. The best way is to multiply
              the financial costs of imported inputs by the standard exchange rate adjustment factor
              (SERF) that reflects distortions between domestic and international prices, the financial costs
              of domestically produced inputs by a domestic standard conversion factor (SCF) that reflects
              domestic price distortions, and the financial costs of labor by the shadow wage rate that
              reflects distortions in the labor market. Often the SERF and the domestic SCF are combined
              into a SCF that accounts for both international and domestic price distortions. Differences in
              financial and economic unit costs reflect price distortions in the project-dependent input
              markets (the distortions reflect the effects of taxes, subsidies, or exchange rate imbalances).
     (ccxxxiii)    Project economic costs can be expressed as follows:

                    PV(EC) = PV(FC) – NPV(Trans);

     (ccxxxiv)    Where PV(EC) stands for the present value of economic costs, PV(FC) stands for the
             present value of financial costs, and NPV(Trans) stands for the net present value of
             transfers9. The financial costs of a project are typically incurred by the Government, which
             finances the repayment of MDB loans that cover these costs. Transfers, on the other hand,
             may involve the Government as well as domestic and international suppliers of project inputs.
     (ccxxxv)     It is important to note that the difference between financial and economic costs reflects
             the net economic effect of transfers. The magnitude of this net effect does not give any
             intuition as to which direction(s) transfers flow between stakeholders. As a result, distribution
             analysis practitioners need a solid understanding of how project-dependent input markets
             function in order to assess the impacts of project-induced transfers on different stakeholder
             groups. Moreover, these impacts need to be discussed in detail in the text of distribution
             analysis reports, because summary tables alone do not show the insights that these
             adjustments can add to the overall project assessment.

               Calculation and Distribution of Economic Benefits

     (ccxxxvi)   Methods to calculate economic benefits vary across different types of projects. The
             method of distribution analysis presented in this paper is most appropriate for projects in
             which economic benefits can be reasonably quantified – such as power, irrigation, agricultural
             extension, and transportation projects.
     (ccxxxvii) Economic benefits are first typically calculated with respect to distinct economic actors
             within the project area and then are aggregated to derive total project-induced economic
             benefits. Financial benefits are usually estimated first for these projects, and then the
             analysis is expanded to encompass economic benefits. For road projects, benefits are
             estimated for transportation users (in the form of time savings), vehicle operators (in the form
             of vehicle operating cost reductions, also termed road user cost savings), and the
             Government (in the form of any toll revenues or direct tax collections resulting from the
             project).
     (ccxxxviii) In general terms, project economic benefits can be expressed as follows:

     (ccxxxix)                PV(EB) = PV(CS) + PV(Rev) + NPV(Ext);

     (ccxl)  Where PV(EB) stands for the present value of economic benefits, PV(CS) stands for the
             present value of consumer surplus, PV(Rev) stands for the present value of any financial
             revenues generated directly by the project, and NPV(Ext) stands for the net present value of
             externalities (positive minus negative externalities).
     (ccxli) It is useful to look at the impact of a project within the context of a partial-equilibrium analysis
             in order to gain a more complete understanding of the terms in the equation above. A project

9
  If the net present value of transfers is positive, this signifies that the taxes associated with the project are greater than the
subsidies, while if it is negative then the subsidies associated with the project are greater than the taxes.



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                       typically serves to decrease the operating costs of specific producers / service providers in
                       the project area, resulting in an increase in their net revenues. Additionally, the project may
                       directly generate revenue if it includes service fees. Hence, the term PV(Rev) may potentially
                       encompass financial returns to different types of private enterprises, as well as to the
                       Government.
           (ccxlii)    In the case studies presented below, no road tolls were considered, and hence there is no
                       direct revenue generated by the project. Indirect revenues, such as increases in fuel sales
                       tax collections and vehicle registration fees that are generated as a result of the project,
                       should be included to the extent that the survey teams and analysts are able to make
                       reasonable estimates for these items.
           (ccxliii)   The project may result in positive and/or negative externalities, although these typically have
                       not been quantified for the purposes of the economic analysis. In all cases, serious efforts
                       should be made to identify potential externalities (such as local pollution or positive spillovers,
                       such as agglomeration economies) and to assess their distributional impacts. Where
                       feasible, externalities should be quantified and included in a project’s economic and
                       distribution analysis. At a minimum, the distribution of project-induced externalities should be
                       investigated within the context of a separate benefit-incidence analysis.
           (ccxliv)    The notation that ENPV is the economic net present value of the project discounted using the
                       standard 12 percent discount rate: it is the PV(EB) – PV(EC)10. The FNPV is the financial
                       net present value of the project also discounted at the same standard discount rate of 12
                       percent. FNPV is: PV(FB) – PV(FC).          Usually, for the financial analysis of the project, a
                       market or project-specific discount rate has been applied. In order to conduct the distribution
                       analysis, the analyst must take the undiscounted financial costs and benefits and apply the
                       standard 12 percent so that economic and financial PVs are comparable.
           (ccxlv)     The table below presents a hypothetical distribution analysis and the PIR by distributing
                       ENPV. FNPV and the conversion factors are shown in the table, but the columns could be
                       dispensed with in presentations; however, they should be discussed in detail in the text of the
                       analysis as they are critical in understanding how to arrive at ENPV and how to distribute it
                       among the stakeholder groups.

                               Table 1.1: Distribution Analysis and the Poverty Impact Ratio

                                       1. Project Financial and Economic Effects 2. Distribution of Project Effects Among Stakeholders
                                                       Conversion                          Distribution by Project Stakeholders
                                            FNPV          Factor       ENPV       Government /        Consumers /           Labor
                                                                                     Economy          Project Users
Total Benefits                              1000            1.8         1800                              1800                0
Costs
Capital Costs                               -650           0.92           -600          -600
Power Costs                                 -330           0.76           -250          -250
 Labor Costs                                 -80           0.70            -56           -80                                     24
Electricity Tariffs                                                                     1000             -1000
Total Costs                                                                -906          70              -1000                   24
ENPV                                                                       894           70               800                    24
                                                                        3. Economic Benefits Going to the Poor
Proportion of ENPV                                                         0.27         0.50              0.25                  0.33
Going to the Poor
ENPV of Poor                                                               243              35               200                  8




           (ccxlvi) The Table’s simplicity clarifies what is being distributed, allows for multiple financial
                    stakeholders, and allows the analyst to focus of describing how the analysis was done, and
                    how the shares of each line item allocated to stakeholder groups was estimated. Also, the
                    analyst uses the table to present results, and must then explain the implications of the results
                    in the text of the analysis. The table does not purport to generate its own results.

     10
        The 12 percent discount rate is used as an approximation of opportunity costs for loan and is an approximation of the PRC’s cost
     of borrowing funds in international markets over the long run.



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     (ccxlvii) There are three key issues that need to be fully addressed by the analyst in the text
               accompanying the table:
               • Understanding the analysis behind the estimates in a Distribution Table. To repeat, the
                  analyst must describe how the analysis was done to arrive at the entries in the table.
               • Understanding what is encompassed in conversion factors. Conversion factors are
                  applied based on available factors in the country that the analysts find from various
                  sources. These are seldom if ever elaborated on or explained, yet to understand what
                  exactly is being distributed it is critical to have a full explanation of the conversion factors
                  used and their pedigrees.
               • Estimating values in Distribution Table from field work. Again, the analyst must describe
                  the empirical foundations behind the estimates in the distribution table that can be
                  supported by available field data, and must be derived from a deep understanding of the
                  conversion factors and their impact on the economy, and different stakeholder groups—in
                  short, informed expert judgment.

               Poverty Impact Analysis: Interpretation

     (ccxlviii) The poverty impact analysis that flows from a distribution table is summarized in the share of
               ENPV that accrues to the poor. However, one needs to do simulations to analyze the
               distributional consequences of policy and regulatory changes that depend on changes in
               institutional behavior. And analysts must examine other factors surrounding the project that
               cannot be captured in a distribution analysis.
     (ccxlix) It is important to note that the pricing structure of any project-related service fees will be a
               strong determinant of the distribution of revenues between private and public stakeholders.
               The exact structure of these markets will also be important in defining the key stakeholder
               groups to include in the analysis. So, for projects that will charge a fee for services, this
               suggests the need to use an iterative method to discover a recommended pricing structure
               until the distribution of benefits among stakeholder groups is optimal with respect to a
               project’s specific policy objectives.
     (ccl)     If the private enterprises affected by the project function in competitive markets, they may
               attempt to lower the prices of their products / services in order to gain a greater share of
               business in project area’s (i.e., localized) markets. This, in turn, may generate consumer
               surplus if the pricing decisions of project-impacted enterprises affect general prices within
               their particular localized markets.11     Competition in local transport markets may induce
               project-area providers to lower passenger fees and freight rates, which would generate
               consumer surplus for transportation service users.
     (ccli) Additionally, the pricing structure of any project-related service fees will strongly determine
               the amount of consumer surplus (willingness-to-pay minus actual fees) captured by non-
               business project users. In the case of a toll road, a progressive pricing scheme based on
               type of vehicle would result in less consumer surplus than a flat (and not prohibitively high)
               fee for all vehicles.
     (cclii) Therefore, if a particular investment will likely have an effect on local prices, benefits will need
               to be calculated for both the consumers and producers of the services. If no effect on local
               prices is expected, only an analysis of potential producer benefits is necessary. Again, it is
               important to note that producer benefits may include revenues directly generated from the
               project (often captured by the Government) as well as the cost savings of the private
               enterprises served by the project.
     (ccliii) In the economic analysis of the project, direct labor is a financial cost; however, for the
               distribution analysis the analyst must consider if the labor market has wage rigidities and

11
   Due to the relatively small-scale of most road investments analyzed as individual projects with respect to the national economy,
projects are typically not expected to induce nationwide price-level effects. The general price-level effects of large-scale
investments, such as expressways, should be examined within the context of a computable general equilibrium (CGE) model or a
regional input-output model simulation. See the ADB’s Jamuna Bridge Poverty Impact Study for an application of general equilibrium
and input-output techniques to deal with project indirect effects (2002).




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             other imperfections, resulting in unemployment or underemployment. In an economic sense,
             some proportion of labor costs used to build the project will thus be a net gain to labor
             because unemployed and underemployed workers will get jobs to build it. So, it is important
             to take into account the share of the economic value of wages paid to unemployed or
             underemployed labor that have little or no opportunity costs. Thus the analyst must apply a
             shadow wage rate adjustment factor (SWRF) to estimate the share of net project benefits that
             will accrue to this stakeholder group.
     (ccliv) While the typical road network upgrade project often does not have national-level effects,
             they often do have local and regional indirect and induced effects. To the extent that the
             project increases the incomes of the beneficiaries, there will be a regional effect on incomes
             of those who do not directly benefit from the project. These stakeholders are often classified
             as belonging to the “General Economy.” If the region in the PRC has a well-functioning
             economy, the analyst could assign a typical regional Keynesian multiplier to the project’s net
             economic benefits as an estimate of the indirect and induced effects of the project on the
             region or “General Economy.”12 This of course is only done for projects where there are no
             resources to analyze the general equilibrium effects using regionalized Input-Output models
             to estimate a more accurate multiplier. In some cases, the analyst will be conservative and
             estimate that there are no indirect or induced effects; perhaps the project is being placed in
             an extremely dysfunctional economy, such as one emerging from a war.
     (cclv) The table below presents a hypothetical distribution analysis and the PIR by distributing
             ENPV. FNPV and the conversion factors are shown in the table, but the columns could be
             dispensed with in presentations; however, they should be discussed in detail in the text of the
             analysis as they are critical in understanding how to arrive at ENPV and how to distribute it
             among the stakeholder groups.

               Structural Constraints Analysis

     (cclvi) Conducting a distribution and poverty impact analyses requires developing insights into any
               structural constraints that surround a project. Structural constraints block a larger share of
               the benefits from going to the poor. These structural constraints can be institutional
               imperfections in markets and policy-related outcomes that can be ameliorated through
               complementary actions.
     (cclvii) The analysts must go through a process to identify the structural constraints and how they
               influence the final distribution on ENPV among stakeholders and then poor stakeholders.
               Stakeholder groups are defined by the analysts as part of the initial implementation design.
               The approach should be tailored for each different project.
     (cclviii) Figure 3.1 presents a diagram that illustrates the method followed to distribute a road
               rehabilitation project’s ENPV among stakeholders and the approach to the distribution and
               poverty impact analyses. Note how the analysis of structural constraints that prevent more
               benefits from accruing to the poor starts with the first task and is continued throughout the
               process of estimating the distribution analysis and the PIR.
     (cclix) The procedure is to first break down the ENPV of the project estimated in the economic
               appraisal into different stakeholder groups. Tasks one through five are required to carry out
               this process. They are broken down by three divisions, tasks 1,2, and 5; tasks 3,4, and 8;
               and eventually tasks 6 and 7.
     (cclx) Once the net benefits for each of these stakeholder groups have been identified, the next
               task is to estimate the proportion of the benefits for each stakeholder group that will go to the
               poor and the extremely poor. Though it is not shown in the figure, additional estimates can
               also be made of the number of poor and extremely poor who likely will benefit from the
               project13.

12
  The analyst should review the literature on regional multipliers for the area in question. The MOC has regional multipliers for
each region in the country based on its National-Regional Input-Output Project.

13
  A poverty impact assessment for the ADB also requires an estimate of the number of poor beneficiaries. The ADB uses the
headcount approach to classify projects as “poverty intervention” projects. If the estimated percentage of poor beneficiaries in the



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     (cclxi) The analyses of structural constraints in the transport services sector in the project area
             provide the basis for the assumptions and estimated parameters upon which the benefits are
             distributed to each category of beneficiary. The beneficiaries are further divided between the
             non-poor, the poor and the extremely poor. Analysts must also perform a sensitivity analysis.


                    Figure 1-2: Diagram of Method to Distribute ENPV for a Road Project



                        ENPV from Economic Appraisal                                                        Distribution
                                                                                                              Analysis


                                                                                                                Task 1
                                                                       Net Capital
                 Reduction in
                                           Future Repair                   and
                  Road User
                                           Costs Avoided               Maintenence                                         Structural
                    Costs
                                                                          Costs
                                                                                                                           Constraints
                                                                                                                            Analysis
                                                                                                               Task 2
            Passenger             Freight                                                                                    Task 3
             Vehicles             Vehicles
                                                                                                                             Task 4


                                                                                                               Task 5
         Users of        Vehicle           Users of
                                                                 Govern-                         Economy
        Passenger       Owners /            Freight                            Labor
                                                                  ment                          in General
        Transport       Operators          Transport
                                                                                                                Poverty
                                                                                                                 Impact
                                                                                                                Analysis
                              Poor                      Poor               Govermnt
          Poor                                                                                Poor
                             Vehicle                   Freight             Transfers
        Passenger                                                                            Labor             Task 6
                            Operators                  Users                to Poor

                                        Extremely                 Govermnt
                  Extremely
                                          Poor                    Transfers
                    Poor
                                         Freight                 to Extreme
                  Passenger
                                         Users                      Poor
                                                                                                               Task 7
                                                                                                                           Structural
                                                                                                                           Constraints
                                                                                                                            Analysis
                          ENPV to Poor and Very Poor
                                                                                                                             Task 8

                                Flow of net benefits                            Source of Assumptions and
                                    distribution                                       Parameters




               Distribution Analysis

     (cclxii) The distribution analysis is implemented based on the net benefits identified in the project
              economic appraisal that was carried out as part of the feasibility study. These benefits are
              distributed among the following stakeholder groups: (i) users of freight transport, (ii) users of

project’s area of influence exceeds the percentage of poor in the region and the county, then the project is classified as a poverty
intervention. This loan classification system has now under review and revision at the ADB.




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             passenger transport, (iii) vehicle owners, (iv) direct labor, (v) the Government, and (vi) the
             economy in general.
   (cclxiii) Table 3.1 presents a description of each task and sub-task for tasks one through five that
             make up this analysis, as well as the data required to carry out each task and the source of
             this data.

                  Table 1.4: Approach to Distribution Analysis for a Road Project

               Tasks                          Sub-Tasks                         Data and Sources

      1.   Disaggregation of    1.1   Sort net benefits into:              Results of Economic Appraisal
           Net Benefits               •    Road User Cost (RUC)            in Feasibility Study Report
                                        Reductions
                                      •    Future Costs Avoided
                                      •    Capital & Maintenance Costs

      2    Divide RUC           2.1   Obtain stream of RUC reductions      Traffic projections from
      .    reductions between         by class of vehicle for normal       Feasibility Study
           passenger and              traffic for each road section.       Unit Road User Costs for with
           freight vehicles                                                and without project scenarios
                                                                           for each road section from
                                                                           Economic Appraisal Results
                                2.2   Obtain stream of RUC reductions      Derived from results of task
                                      by class of vehicle for generated    2.1, using estimated elasticity
                                      traffic for each road section.       of demand
                                2.3   Obtain stream of RUC benefits        Apply distribution obtained
                                      for bridge improvement by class      from Task 2.1 to bridge RUC
                                      of vehicle.                          reductions estimated in
                                                                           Economic Appraisal
                                2.4   Sum up estimates for each road       Results of Tasks 2.1, 2.2 and
                                      section and bridge to obtain total   2.3
                                      project benefits by class of
                                      vehicle

      5    Distribute net       5.1   .Distribute RUC reductions           Using results from the
      .    benefits among                                                  Consultant’s surveys and
           categories of                                                   analysis of constraints (Tasks
           beneficiaries                                                   3 and 4 below); specifically:
                                                                           •   % of cost savings to be
                                                                              passed on to users by
                                                                              class of vehicle
                                                                           •   Distribution of vehicle
                                                                              ownership
                                5.2   Assign future repair costs           Estimate from Economic
                                      avoided to Government                Appraisal
                                5.3   Assign net capital and               Estimate of costs and direct
                                      maintenance costs to                 labor impact from Feasibility
                                      Government and labour                Study




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           Analysts’ Surveys

   (cclxiv) The analysts design the surveys to specifically fill the data gaps needed to answer these key
            questions required to estimate the parameters for the distribution and poverty impact
            analysis:
            • To what extent do the poor and the very poor use the road;
            • To what extent will the project’s benefits be passed on to the poor and very poor;
            • What institutional constraints bar the poor and the very poor from receiving a larger share
                 of the benefits from the project; and
            • What complementary actions would best help the poor and extremely poor to benefit from
                 an improved transport system.
   (cclxv) Answers to these questions allow estimation of the distribution of benefits between
            stakeholder groups and to estimate the share of each stakeholder group that is poor or very
            poor, based on nationally defined poverty lines. Note that only income poverty is addressed
            in the poverty analysis done to estimate the PIRs. These surveys are complemented by key
            informant interviews for Government officials at the national and local levels. Another
            technique that is commonly used to supplement this information is to conduct focus group
            discussions of stakeholders. These provide qualitative data that can be very useful in
            developing the estimated distribution of net benefits, and the results form part of the social
            analysis.

           Poverty Impact Analysis

   (cclxvi) The objective of the poverty impact analysis in the context of this paper is to estimate the
            percentage of the net economic benefits of the project which will reach the poor and
            extremely poor. Table 3.3 presents a description of each task and sub-task that are part of
            this analysis, as well as the data required to carry out each task and the source of this data.

                  Table 1.5 : Approach to Poverty Impact Analysis for a Road Project

            Tasks                            Sub-Tasks                           Data and Sources
   6.   Estimate numbers        6.1   Estimate number of poor and         Results from the analysts’ surveys
        and proportion of             extremely poor in project area      (Task 3)
        poor and extremely            who use road transportation         Analysis of data from national
        poor that will                services on project roads           household survey.
        benefit.
                                                                          Population estimates for project area
                                                                          (see Ch. 2)
                                6.2   Estimate proportion of poor and     Results from the analysts’ surveys
                                      extremely poor in each category     (Task 3)
                                      of beneficiary used in              Analysis of data from national
                                      distributional analysis.            household survey.
                                6.3   Estimate net benefits from each     Results of Tasks 5 and 6.2
                                      category of beneficiary that will
                                      go to poor and extremely poor

   7.   Estimate Poverty        7.1   Aggregate benefits to poor and      Results of Task 6.3
        Impact                        extremely poor.
                                7.3   Summary of poverty reduction        Results of Tasks 6 and 7
                                      effects of the project.




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PHILIPPINES CASE STUDY

     Political-Economic Background

     (cclxvii) An analysis of the distribution and poverty impact of improving a road network in the PRC
                must examine in detail the political-economic situation in the area. This is especially
                important in Western PRC, where the remoteness of the area may give the area and its
                people may be very different from those found on the East Coast of the PRC. The example
                below illustrates the importance of such an analysis.
     (cclxviii) The current conflicts in the Philippines have their roots in the ways different islands were
                settled. Islamic settlers arrived in the 14th century and established ports, towns and farms
                primarily on the southernmost islands, including Mindanao. Subsequent colonization was
                established by the Spanish Catholics in the 16th and 17th centuries, and later by the U.S. in
                the 20th century. Now, Roman Catholics make up 83 percent of the population, Protestants
                nine percent, Muslims five percent, and an additional three percent belong to other religions.
                The majority of the Muslim population is still centered in Mindanao and other islands in the
                south.
     (cclxix) After a brief period of peace following World War II, armed conflicts in the Philippines have
                become more serious during the last 30 years, and four rebel groups are currently active. The
                Islamic groups, the Moro National Liberation Front (MNLF), Moro Islamic Liberation Front
                (MILF), and Abu Sayyaf, operate in Mindanao, Jolo, and Sulu. The Communist group, the
                New People’s Army (NPA), primarily operates in Quezon, Northern Samar, Bohol, Sorsogon,
                Negros Occidental, Camarines Sur, Compostela Valley, Western Samar, Albay, and Eastern
                Samar, located in the southern Bicol Region in Luzon14. A general distinction can be drawn
                with Communist rebels primarily in the north and Muslim rebels primarily in the south;
                although some Communist rebel groups are active in Mindanao as well.
     (cclxx) The MNLF is the oldest of the currently active Islamic rebellious organizations in the
                Philippines. The MNLF appeared in the early 1970’s and began fighting for an independent
                Moro nation. Moros, or followers of radical Islam, first began to experience internal strife
                after the 1976 peace agreement with the Manila Government. In 1977, a new, more militant
                group broke from the MNLF, the Moro Islamic Liberation Front (MILF). The MNLF continued
                fighting for an independent Moro nation, and in a 1996 agreement, the Autonomous Region
                in Muslim Mindanao (ARMM) was formed. The ARMM is composed of the provinces of
                Maguindadnao and Lanao del Sur in Mindanao, and the island provinces of Sulu, Tawi-Tawi
                and Basilan. While this was the first step towards an independent Moro nation, the region has
                only limited autonomy, mainly over economic issues; the central Government of the Republic
                of the Philippines (GRP) retains control over defense, finance and foreign relations. So,
                despite this limited autonomy, the MILF continues to carry out violent acts in Mindanao and
                other southern islands.
     (cclxxi) The more militant Islamic group, the MILF has also had a long-term goal of creating a
                separate Islamic state in the southern Philippines. MILF has more emphasis on its Islamic
                roots than the MNLF. They have gained popular support in areas that lack economic
                development, the poverty and perceived lack of opportunities in those areas have
                encouraged their rebellion. In 2000, the Philippine Army led a crack-down on the MILF which
                eventually led to a 2001 peace agreement. Violence still occurs sporadically between the
                MILF and the Philippine Army. In February 2003, the Army launched a new offensive against
                the MILF due to accusations that the MILF harbored members of the Pentagon Kidnap gang.
                In July of 2003 the GRP and the MILF agreed to a ceasefire which is still in effect. Despite
                the ceasefire, the violence caused by the MILF continues in Mindanao.




14
   Kaufman, AFP redeploys troops to face new NPA threat, The Manila Times, 16 Jan 2003,
http://www.manilatimes.net/national/2003/jan/16/top_stories/20030116top4.html



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                        Figure 1.1: Map of Philippines and Southeast Asia




   (cclxxii) Abu Sayyaf, which means ‘Sword of God’, split from the MNLF in 1991. Abu Sayyaf is the
             best known of the radical Islamic groups, despite the fact that it is the smallest. The group
             gained public notoriety in 2002 for the kidnapping of western nationals and the resulting



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                  shootout between the Philippine commandos trying to rescue the hostages. Abu Sayyaf has
                  limited nationwide support but has two strongholds on Jolo and Basilan. Due to the poverty in
                  these regions, the people there are more willing to support Abu Sayyaf for the prospect of
                  receiving ransom payments when the work is complete. The Government refused to
                  negotiate with Abu Sayyaf citing them as criminals, and no peace agreements have been
                  signed between the two. Fighting continues with no signs of a peaceful solution in the near
                  future.
       (cclxxiii) The only well-organized Communist group active in the Philippines is the New People’s Army
                  (NPA), the military wing of the Communist Party of the Philippines (CPP). Originally formed in
                  1969, the NPA is recognized as Southeast Asia’s longest-running Marxist insurgency. The
                  NPA began in the north and spread to Mindanao where they attract members from the rural
                  poor.
       (cclxxiv)       Peace talks were in progress in 2001 but stalled when the NPA admitted killing two
                  Congressmen. Talks resumed in 2003 but the NPA rejected a peace agreement citing “that
                  they are under extreme duress after being listed on European and US terrorist lists.” 15
                  Unlike the Americans and Europeans, the GRP does not consider the NPA a terrorist
                  organization. In February 2004, the peace process was revived, and the two sides agreed to
                  a series of measures to move towards a final peace agreement. Those measures include:
                  setting up a joint commission to examine human rights violations on both sides, and working
                  together for the removal of the NPA from the US’s and EU’s list of terrorist organizations.
                  Despite this progress, the NPA continues to be militarily active in southern Luzon and other
                  parts of the Philippines.
       (cclxxv) Activities of the radical Islamic and militant Communist groups still continue on the island of
                  Mindanao, along with other poor provinces in the Philippines; and they are the favored
                  recruiting sites for members of these groups. The poverty in Mindanao and other selected
                  provinces where these groups are active is nearly twice that of the Philippines as a whole. As
                  the poverty rate remains high, it is likely that the amount of extremist activities will remain
                  high in the provinces already torn by conflict.

       Philippines Rural Road Project I

       (cclxxvi)     We were engaged by the ADB to conduct this study in early 2004. This case study is
                important in three ways: it shows that what is presented in the distribution table should be
                tailored to the specific project, that the distribution and poverty impact analyses can be
                completed in conflict areas, and that conducting sensitivity or alternative scenarios should be
                carried out to gain full insights into the distribution analysis. The example is from a rural
                roads improvement program done by the authors for a proposed loan currently being
                prepared for the RRP and ADB consideration for loan approval.




15
     Gershman, John. October 2001 “Moros in the Philippines”. Foreign Policy in Focus. Washington, DC, USA.




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                            Figure 1.2: Map of Project Roads in the Philippines




     (cclxxvii)   The poverty lines used in this study are the officially defined poverty thresholds (for the
              poverty line) and food thresholds (for extreme-poverty line) per year per capita on a family
              basis. The official methodology first establishes the food threshold by computing the income
              needed to afford the cost of basic food requirements, 2,000 calories.16 This line is set by
              computing the average nutritional requirements of Filipinos using the country’s population
              structure in 1985. More recent research has indicated that the average nutritional
              requirements based on the 1995 population structure have remained around 2,000 calories
              per day. The food threshold for the whole country in 2002 is 8,037 pesos (8,610 pesos in
              urban areas and 7,904 pesos in rural areas) per capita on annual basis. On a family basis,
              people whose income falls below these lines are considered very poor. The food threshold
              plus other basic expenditures including clothing and footwear, housing, medical care,
              education, and transportation and communication define the poverty threshold. The poverty
              threshold for the whole country in 2002 is 11,906 pesos (13,313 pesos in the urban areas


16
  “Poverty Assessment in the Philippines.”   NSBC Technical Papers, September 2002, No. 2000-002.   National Statistical
Coordination Board.




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            and 11,390 pesos in the rural areas) per capita on annual basis. Those whose income does
            not reach the poverty threshold level are considered poor.
   (cclxxviii) In this case study, the provincial poverty and food thresholds, instead of the country-level
            thresholds, are used to define the poor and very poor in order to more accurately measure
            the impact of the Project on the poor population. The actual levels of the poverty and food
            thresholds in the national currency unit are provided below.

   Table 1.1: Poverty Thresholds and Food Thresholds: Per Capita Annual Incomes, in Pesos

                                                                           Poverty          Food
   Region        Province         Project Roads
                                                                           Thresholds       Thresholds
                 Camarines        Basud – Masalongsalon
                                                                           11,857           8,174
                 Norte            Poblacion – Capalonga – Calabaca
   Region V
                                  Pawa – Sta. Magdalena
                 Sorsogon                                                  11,762           8,650
                                  Prieto Diaz – Manlabong
                 Davao      del   Asuncion – Sawata
   Region XI                                                               11,439           7,827
                 Norte            Panabo – Malativas

   (cclxxix)      For the distribution analysis, economic costs have been subtracted on a year-by-year
            basis from the total benefits prior to the distribution. This distributes the economic costs of the
            program across all users of the roads, and thus likely places a tax burden that is too large on
            poor and very poor stakeholder groups. While information on actual tax incidence on various
            income classes for the Philippines by Province is not very reliable, this approach gives a first
            approximation to the distributional effects of the project on various stakeholder groups.
   (cclxxx) The roads are tertiary rural roads, and no toll mechanism is being considered for these roads.
            As presented, it cannot be used as an end-check as to the affordability of the project to the
            Government. However, these should have been considered prior to project preparation and
            reflected in the ADB’s Country Strategy and Country Program. As such, the impact on the
            Government budget from the project has already been analyzed in terms of increased
            financing needs, the resulting macroeconomic implications, and found to be relatively benign
            in its impact at that level for the project to continue to the detailed economic, distribution and
            poverty analysis. We adopted this approach due to time and budget constraints.
   (cclxxxi)      The classes of beneficiaries we decided to examine are based on the analysts’ surveys,
            secondary data, and fieldwork. We found that the poor and very poor are providers of
            transport services, in addition to users of the road. This somewhat unusual finding prompted
            us to include the poor and very poor as both users and vehicle owners as separate
            stakeholder groups.
   (cclxxxii)     The distribution analysis draws upon the analysts’ fieldwork including surveys, and
            reflects that the poor and very poor are very heavy users of motorized transit on the project
            roads. It also reflects that as the roads are improved, competition in the passenger and
            freight transport markets will be moderately strong, with the exception of the jeepney
            transport market, which is very heavily regulated. As a result, the benefits of lower transport
            costs that are an outcome of the roads project will, to some degree, be passed on to poor
            and very poor passengers and freight shippers depending on the mode of transport used.
   (cclxxxiii) Moreover, the field research has shown that a number of subsistence farmers are likely
            to switch to growing some cash crops and increase their use of freight transport to move
            product to market. These farmers are likely to use an increased amount of commercial
            fertilizers, and this will also increase their share of the net benefits as users of freight
            transport.
   (cclxxxiv) For the baseline forecast, the estimated share of benefits accruing to poor and very poor
            passengers is determined by the assessment of likely competitive conditions by type of
            transport vehicle and the use of the roads by the different income classes. For the net
            benefits accruing to freight shippers, the fieldwork supports the estimates that 11 percent of
            the net benefits will accrue to the poor and 5 percent to the very poor, where again the very
            poor are included in the poor grouping. This includes an assessment that 20 percent of the
            benefits will go to poor jeepney owners/renters over the life of the project.



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                Table 1.2: Net Economic Benefit Distribution of the Philippines Rural Roads Project I: Baseline Scenario


Vehicle           No. of     No. of     No. of   No. of Very Net Benefits          Poor    Very Poor NonPoor        Poor    Very Poor  NonPoor      Govt.    Direct Labor Benefits to
Class             Veh.       Pass.    Poor Pass. Poor Pass Percent Mil. Pesos     Users      Users      Users Veh. Owners Veh. Owners Veh. Owners Benefits    Benefits    the Economy
                                                                                Mil. Pesos Mil. Pesos Mil. Pesos Mil. Pesos Mil. Pesos Mil. Pesos Mil. Pesos Mil. Pesos     Mil. Pesos
Passengers
Motorcycle         10,803    10,803        3,565       1,620     7.5%    31.8        10.5        4.8       5.4         6.4         1.6          3.2       0.0
Tricycle            3,336     6,672        2,202       1,334    13.5%    57.2        18.9       11.4       6.3        17.1         2.9          0.6       0.0
Car                 1,376     3,441          241         172     6.0%    25.4         1.8        1.3      10.3         1.3         0.6         10.2       0.0
Jeepney             1,113    22,264       13,358      11,132    14.0%    59.3         8.9        3.0       8.9        11.9        11.9         14.8       0.0
Mini Bus               84     1,253          626         501    10.0%    42.3         8.5        4.2      16.3         0.4         0.2         12.7       0.0
Bus                   371     9,282        7,147       5,012    12.0%    50.8         7.6        2.5       5.0         0.1         0.0         35.6       0.0
Labor & Other                                                                                                                                                        17.2      1,101.6
Freight             No. of              Share of hare of Very
                                               S
                      Veh             Poor Users Poor Users
Tricycle            1,430                   20%          10%    3.0%     12.7         2.5        1.3       3.7         2.5         1.3          0.1       1.3
Car                 1,376                   20%          10%    4.0%     16.9         3.4        1.7       2.1         0.8         0.4          6.8       1.7
Jeepney               477                   20%          10%    5.0%     21.2         1.1        0.5       1.6         6.4         4.2          5.3       2.1
Bus                    93                   20%          10%    5.0%     21.2         4.2        2.1       6.3         0.0         0.0          6.4       2.1
4-wheeler             994                   20%          10%    9.0%     38.1         7.6        3.8       7.6         0.0         0.0         15.2       3.8
6-wheeler             440                   20%          10%    8.0%     33.9         6.8        3.4       6.7         0.0         0.0         13.5       3.4
Semi Trailer          223                   20%          10%    3.0%     12.7         2.5        1.3       2.5         0.0         0.0          5.1       1.3
Poor Labor & Other                                                                                                                                                    8.6        220.3
Total Roads Progra 21,893    53,715       27,140      19,772    100%    423.4        84.3       41.3      82.7        46.9        23.1        129.4      15.7         8.6      1,101.6
Share Roads Program                         51%         37%             100%         20%        10%       20%         11%          5%          31%        4%         50%          20%

* 1 USD = 55.8 pesos




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   (cclxxxv)      The field research shows that the Government is a small net beneficiary in these
            markets. The Government ships a small amount of freight for use in its programs and
            operates a small share of the vehicles on the Project roads. Thus the Government operation
            and use of trucks to move freight is extremely small. The Government is most likely to
            capture 4 percent of the net benefits from the transport cost savings accruing to freight users
            and shippers.
   (cclxxxvi) The project will serve as a catalyst to economic and social development in the project’s
            zone of influence (ZOI), and in the Bicol Region and Davao del Norte as a whole (where the
            project roads are located).      Given the current conditions where there exists substantial
            excess capacity in both investment opportunities and unemployed labor at all skill levels, the
            analysts forecast that the net economic benefits will have a ripple effect amounting to 2.5
            times the direct benefits of the project. Such a magnitude for a Keynesian-type multiplier
            effect is not unusual in the regional economies such as Sorsogon, Camarines Norte and
            Davao del Norte. The project, by rescuing 490 kilometers of key roads, will remove one of
            the most critical constraints to economic and social development. As a result, the project will
            lift the Provinces’ net income by US$19.7 million in net present value terms over the 24-year
            life of the project.
   (cclxxxvii) Assuming a significant improvement in the poor’s participation in the economy, about 20
            percent of these benefits to the economy in general will accrue to the poor, or about US$ 3.9
            million over the life of the project. The share of these benefits going to the poor and very
            poor can be increased substantially with the most appropriate complementary actions, and
            these possibilities are covered in the sensitivity analysis. The table above presents the
            baseline forecast of the distribution analysis.
   (cclxxxviii) For the sensitivity analysis, we considered two cases, one of which is presented here.
            We assume that the recommended complementary actions, including institutional reform so
            that the Government loosens control of the jeepney markets on the project roads,
            substantially boosts competition in segments of the transport markets, which should increase
            the share of benefits accruing to poor passengers of jeepneys and busses.
   (cclxxxix) For this simulation, the analysis shows that a higher proportion of the project’s discounted
            net economic benefits for jeepney, bus, and mini-bus users go to poor passengers and
            shippers of freight and to very poor passengers and shippers of freight in these vehicles.
            That is up by about double for poor and for very poor users of these vehicles compared to the
            baseline forecast. The simulation shows that the share of the project’s net benefits for freight
            shippers (poor, very poor, and non-poor) declines due to the pressure from increased
            competition. But the gains to the poor and very poor users of the passenger and freight
            services markets outweighs the losses in net economic benefits to the poor and very poor
            owners (and renters) of vehicles on the supply-side of these markets.




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                Table 1.3: Net Economic Benefit Distribution of the Philippines Rural Roads Project I: More Competitive Scenario

Vehicle            No. of   No. of      No. of   No. of Very  Net Benefits         Poor    Very Poor NonPoor        Poor      Very Poor   NonPoor      Govt.    Direct Labor Benefits to
Class               Veh.    Pass.     Poor Pass. Poor Pass Percent Mil. Pesos     Users      Users      Users    Veh. Owners Veh. Owners Veh. Owners Benefits    Benefits the Economy
                                                                                Mil. Pesos Mil. Pesos Mil. Pesos Mil. Pesos   Mil. Pesos  Mil. Pesos Mil. Pesos Mil. Pesos Mil. Pesos
Passengers
Motorcycle         10,803    10,803       3,565       1,620    7.5%      31.8        10.5        4.8       5.4          6.4          1.6          3.2       0.0
Tricycle            3,336     6,672       2,202       1,334   13.5%      57.2        18.9       11.4       6.3         17.1          2.9          0.6       0.0
Car                 1,376     3,441         241         172    6.0%      25.4         1.8        1.3      10.3          1.3          0.6         10.2       0.0
Jeepney             1,113    22,264      13,358      11,132   14.0%      59.3        29.6       14.8       0.0          5.9          5.9          3.0       0.0
Mini Bus               84     1,253         626         501   10.0%      42.3        21.2       10.6       1.5          0.4          0.2          8.5       0.0
Bus                   371     9,282       7,147       5,012   12.0%      50.8        25.4       12.7       2.5          0.1          0.0         10.2       0.0
Labor & Other                                                                                                                                                          17.2      1,101.6
Freight            No. of               Share    Share Very
                     Veh              Poor Users Poor Users
Tricycle           1,430                    20%        10%     3.0%      12.7         2.5        1.3       3.7          2.5          1.3          0.1       1.3
Car                1,376                    20%        10%     4.0%      16.9         3.4        1.7       2.1          0.8          0.4          6.8       1.7
Jeepney              477                    20%        10%     5.0%      21.2         1.1        0.5       5.8          6.4          4.2          1.1       2.1
Bus                   93                    20%        10%     5.0%      21.2         4.2        2.1       8.4          0.0          0.0          4.2       2.1
4-wheeler            994                    20%        10%     9.0%      38.1         7.6        3.8       7.6          0.0          0.0         15.2       3.8
6-wheeler            440                    20%        10%     8.0%      33.9         6.8        3.4       6.7          0.0          0.0         13.5       3.4
Semi Trailer         223                    20%        10%     3.0%      12.7         2.5        1.3       2.5          0.0          0.0          5.1       1.3
Poor Labor & Other                                                                                                                                                      8.6        220.3
Total Roads Progra 21,893    53,715      27,140      19,772    100%    423.4        135.5       69.7      62.8         41.0         17.2        81.6       15.7         8.6      1,101.6
Share Roads Program                        51%         37%             100%          32%        16%       15%          10%           4%         19%         4%         50%          20%

      * 1 USD = 55.8 pesos




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   (ccxc) The responsiveness of the share of ENPV going to the poor to the changes in the jeepney,
           mini-bus and bus passenger and freight transport markets shows that the importance of
           increased competition in the markets is tempered by the fact that many jeepney, bus and
           minibus operators are poor and either own or lease their vehicles. The gains among poor
           and very poor user stakeholders (i.e. passengers and those that use the freight shippers) still
           outweigh the losses to the poor and very poor vehicle operators who own or lease their
           vehicles. To see the changes, one must compare the baseline Distribution Analysis to the
           more competitive Distribution Analysis. Comparing the two Distribution Analyses also shows
           that the benefits to non-poor vehicle owners decline. These results highlight the complexity
           in the structure of the passenger transport service markets, where both a large share of the
           suppliers of the services and demanders of the services are poor or very poor.
   (ccxci) All three of the provinces in the project are in areas affected by either the militant Communist
           or militant Muslim organizations. We were able to conduct our fieldwork with a minimum of
           disruptions. We were escorted by armed Philippine police officers in plainclothes, so that the
           police presence did not disrupt our fieldwork. Moreover, those people surveyed were very
           cooperative and were generally supportive of the proposed road rehabilitation program.
           While the quality of our surveys, key informant interviews, and focus group discussions
           appear to have been unaffected by the presence of military conflict, it is still unclear as to how
           the presence of the conflicts affected the accuracy of our forecast costs, benefits, or the
           distribution of those benefits.




                       CPCS Transcom – Louis Berger International Consortium
Technical Assistance Consultant’s Report




Project Number: Tar 37125, TA No. 4322-PRC
June 2006




People’s Republic of China:

Poverty Impact of Area Wide Road Networks

Financed by the Poverty Reduction Cooperation Fund


IMPROVED GUIDELINES FOR ROAD NETWORK
FEASIBILITY STUDY:
SOCIAL AND POVERTY ANALYSIS GUIDELINES
Prepared by
CPCS Transcom - Louis Berger International Consortium
Ottawa, Canada & Washington D.C., United States


For Ministry of Communications, People’s Republic of China

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and
ADB and the Government cannot be held liable for its contents. (For project preparatory technical
assistance: All the views expressed herein may not be incorporated into the proposed project’s design.)
                                                                               Improved Guidelines for Road Network Feasibility Study
                                                                                     Section B: Social and Poverty Analysis Guidelines

                                                               TABLE OF CONTENTS

                                                                                                                                                                 Page
Preface ...............................................................................................................................................................1

Introduction .........................................................................................................................................................1
   The Role of the Social and Poverty Analysis..................................................................................................1
   Accepted Principles ........................................................................................................................................2
   Objectives .......................................................................................................................................................2

Components of Social Analysis Design..............................................................................................................5
  Data Collection................................................................................................................................................5
  Zone of Influence and Stakeholder/Project Affected Area Identification ........................................................6
  Stakeholder Needs and Demands Assessment .............................................................................................6
  Absorptive Capacity ........................................................................................................................................7
  Gender Issues.................................................................................................................................................7
  Potential Adverse Impacts ..............................................................................................................................8
  Potential Positive Impacts...............................................................................................................................8
  Mitigation Measures ......................................................................................................................................10




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                                                             Section B: Social and Poverty Analysis Guidelines

                                                   SECTION B:

                            SOCIAL AND POVERTY ANALYSIS GUIDELINES

Preface

      (i)      These guidelines have been prepared for the Government of the People’s Republic of China
               (PRC) to provide guidance in assembling Social and Poverty Assessments (SPAs) for road
               network projects that in accordance with the Asian Development Bank’s (ADB) evolving
               practices the Feasibility Stage. These guidelines are designed to provide assistance for
               compliance with ADB requirements, and do not provide specific guidance on PSA
               requirements under PRC regulations. The guidelines are designed to provide guidance to
               PRC Executing Agencies (EA), Implementing Agencies (IA), consultants, construction
               contractors, and project managers.
      (ii)     When projects involve ADB-derived funds, ADB’s guidelines will need to be applied. ADB
               guidelines should be applied only when host country standards do not provide the same
               minimum level of protection as those defined by the ADB. This means that when the host
               country calls for a type of social protection under a given project (i.e. protection of a
               vulnerable group or ethnic minority), that is less than the ADB’s specifications; the ADB’s
               specifications must be followed.
      (iii)    After a number of applications of the SPA Guidelines to ADB-funded projects, the desire is for
               the PRC MOC and Provincial Governments to modify these Guidelines for use with the
               ARNM for road network planning for projects not funded by the ADB. In this eventual
               outcome, these Guidelines will change, and give the MOC and Provincial Governments an
               example of international good practices to use to prepare detailed network- oriented
               feasibility studies.
      (iv)     It is very important that the Economists doing the Economic Analysis for the network
               improvement project and estimating the Distribution Analysis (DA) and the Poverty Impact
               Analysis (PIA) cooperate closely with the Social Specialists doing this SPA. The DA and PIA
               overlap substantially with this SPA. However, the Economists will bring a different and useful
               perspective to this type of work by cooperating with the Social Specialists. Only with such a
               multidisciplinary team will the SPA be done correctly and thus be useful to the Monitoring and
               Evaluation System that will need to be put in place when the project is implemented.

Introduction

      The Role of the Social and Poverty Analysis

      (v)      Social analysis is typically approached from either a holistic (including anything relating to
               people or society) or residual (anything that is not economic) perspective1. Its purpose is to
               clearly address social dimensions of infrastructure projects to ensure that societal concerns
               are identified, considered and incorporated into program design. Social analysis typically
               focuses on non-economic effects on societies and communities (often the rural poor) directly
               affected by these projects. Typically conducted by anthropologists or sociologists rather than
               economists, it is an inclusive approach to development and incorporates different skill sets. A
               poverty analysis, which employs socio-economic indicators, is ultimately concerned with
               poverty reduction; however the two analytical approaches are complementary. Recently, the
               ADB has combined the Poverty and Social Analysis for roads and road network projects.
      (vi)     A poverty and social analysis (PSA) is used as a tool to enable analysts and policymakers to
               assess the context in which poverty alleviation programs may be implemented, allowing the
               existing anti-poverty programs to be tailored to the unique environment in which the road
               network is being improved. In this sense, the PSA is an important analytical tool and often
               incorporates qualitative research, highlighting any unique circumstances in the local

1
    Guidelines on Social Analysis for Rural Area Development Planning, Diane Conyers, 1993



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            environment that might affect the distribution of project benefits and have long term social,
            political and economic repercussions. Benefits from road network improvements can be
            leveraged based on the results of the social analysis, ensuring community buy-in and project
            sustainability and even higher economic benefits. Inadequate or limited social analysis
            increases the potential for failure, limited viability or even sabotage of development projects.
   (vii)    During the feasibility stage of a project design, a social analysis is an important tool to assist
            in identifying people who are likely to be affected both positively and negatively by the design.

   Accepted Principles

   (viii)   Social analysis guidelines reflect recommended international best practices and standards as
            set forth by the general development community, comprised of international financial
            institutions (IFIs), recipient countries and governments. These guidelines represent different
            methodological approaches to analyzing the social dimensions of infrastructure. However,
            they may be subject to different interpretations on account of the various cultural, political,
            religious and social values in order to customize the methodology for a specific country
            project.
   (ix)     Adherence to these guidelines validates the PRC’s desire to implement highway network
            development and infrastructure planning in a healthier and sound manner and limit the
            potential social costs of these projects. Though highway developers and construction teams
            may not bear the direct responsibility for this, a complete social analysis conducted by the
            Ministry of Transport can facilitate successful and sustainable highway construction and
            generate needed popular support from communities. The overall performance of the project
            is measured through monitoring and evaluation processes, which will be covered under a
            separate section.

   Objectives

   (x)      The results of the SA are instrumental to effective and efficient program design, and as such,
            the SA should seek to accomplish several critical objectives. Although the depth and scope
            of the SA will vary according to the project objectives and complexity of issues present in the
            local environment, the main objectives remain consistent and are essential elements of
            project design.
   (xi)     Below is a step by step process, which outlines the approach and objectives of a social
            analysis during the feasibility study stage of a project.

            Step 1: Define the Zone of Influence

   (xii)    In order to perform an SA, the zone of influence (ZOI) must first be defined. The zone of
            influence is the area in which project impacts are likely to be immediately felt, usually defined
            geographically as a given diameter around the proposed infrastructure project. Typically, the
            ZOI is determined to be within 10-15 km on either side of a proposed road project. Within this
            area, changes in socio-economic status are likely to be reasonably attributable to project
            conditions. Alternatively, the ZOI may be defined as the geographic area whose social and
            economic condition is significantly affected by changes in the project area (administrative
            boundaries, i.e. townships along the alignment). Therefore, an accurately defined ZOI is
            essential for measuring project success and estimating benefits correctly. If it is not possible
            to carefully define a ZOI in the manner described above, administrative districts surrounding
            the project roads can be sufficient for the analysis.

            Step 2: Identify the Stakeholders

   (xiii)   The Economists doing the Distribution Analysis (DA) and the Poverty Impact Analysis as part
            of the Economic Analysis must work closely with the social specialists conducting the SPA to
            identify the stakeholders. Stakeholders are any groups or individuals who may be affected by
            the project, either positively or negatively. Although defining the ZOI will locate some



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              stakeholders who are likely to be directly affected, other interest groups should be included,
              such as villagers’ committees and other regional organizations focusing on issues such as
              development or environmental conservation and private development interests.              It is
              important to be aware of any power imbalances that may exist among stakeholders. The
              road network improvement program can then be designed to account for imbalances or
              uneven distribution of benefits.

              Step 3: Estimate the Number of Poor and Very Poor in the Project Area

      (xiv)   The task begins by using an acceptable poverty line. The ADB and other IFI’s have a poverty
              line for the PRC that is internationally comparable based on purchasing power parity
              adjustments. The PRC has a national poverty line, an urban poverty line, and a rural poverty
              line, stated in Yuan per person per month. The Provinces also have individual poverty lines
              set for people living in their rural and urban areas. The headcount approach to measuring
              the incidence of poverty in the project area usually involves taking the population density in
              the local districts and applying that density (and the percentage of poor who fall under the
              chosen poverty line) to the ZOI, however defined. As part of the Social Analysis, the Poverty
              Analysis begins with the headcount measure of the number of poor affected by the project as
              measured by those who live in the project’s ZOI. As part of the PSA, it is particularly
              important in the steps below to count the poor and very poor as stakeholder groups, and to
              try to leverage any anti-poverty programs or programs assisting vulnerable groups into
              assisting the poor and very poor in using the improved road network. A more sophisticated
              approach to estimating the poverty impact of an improved road network is given at the end of
              the Economic Feasibility Guidelines. The Economists doing the DA and PIA as part of the
              Economic Analysis must share the results of their work for a proper SPA to be completed.
              Material on the DA and PIA must be included as part of the SPA at this point.

              Step 4: Assess Stakeholder Needs

      (xv)    Again, the Economists doing the Economic Analysis and the DA and PIA and the Social
              Specialists doing the SPA must work together on this important issue. In order to formulate a
              program that will be accepted by and useful to the community it is intended to help, the needs
              of the stakeholder groups must be determined. A needs assessment enables the project
              team to prioritize the needs of the stakeholder groups, ensures that the objective needs of a
              community, as outlined by the villager’s committee, are described in agreement with their felt
              needs, and examines the underlying causes for the problems to be addressed by the project.
              Appropriate techniques for the collection of this information include focus group discussions,
              surveys, and other first-person data collection methods.

              Step 5: Assess Stakeholder Demand

      (xvi)   Stakeholder demand is defined as the “willingness and capacity of the target clientele to
              contribute to the cost of a service or asset.”2 The contributions of a community can take on
              many different forms, from cash contributions, to labor or other in-kind contributions.
              Estimating the willingness and ability of a community to pay for the services proposed should
              also be done through first-person data collection techniques and consideration of the
              comments provided by villagers’ committees. It is important when assessing demand to
              ensure that the expectations of the community are realistic when compared to the capacity of
              the project to affect change in the area.




2
    Asian Development Bank. Handbook on Poverty and Social Analysis. December 2001. p. 22.




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                  Step 6: Assess Stakeholder Absorptive Capacity

       (xvii)     Absorptive capacity is defined as the likely ability of a poor community to effectively use and
                  maintain a proposed improvement or service 3. An accurate estimate of absorptive capacity
                  will allow the project team to determine in advance of implementation those mechanisms that
                  will need to be implemented to ensure project sustainability. Such mechanisms may include
                  the mobilization of community-based organizations, technical training for user groups, and
                  informational campaigns to increase awareness of the project and its potential benefits to the
                  community, to encourage use. Absorptive capacity provides an estimate of available social
                  capital in a proposed project area, and is essential for determining potential project success.

                  Step 7: Assess Gender Issues

       (xviii)    Among the social dynamics that must be understood in order to design an effective project
                  that will maximize benefits to the greatest number of stakeholders, gender issues are of high
                  importance. Division of labor at the household and community levels, access to services and
                  facilities based on gender, and influence on community decisions must all be assessed in
                  order to ensure that benefits will accrue to both men and women in the community. In
                  addition, if there are particular hardships faced by women, the project may then wish to
                  formulate components that will address those particular needs. Consideration of basic needs,
                  such as private roadside bathroom facilities, ensures that gender-sensitive concerns are
                  addressed in infrastructure development.
       (xix)      The purpose of conducting a gender analysis as part of the social analysis is to define when,
                  where, and how gender issues will be addressed during the subsequent project cycle. Once a
                  full assessment of gender issues is complete, the gender issues and the proposed strategy
                  along with details of any further gender analysis needs during the design phase should be
                  described in a detailed report accompanying the feasibility study. The gender analysis
                  should be based on the following questions: 4
                  • Who are the target beneficiaries?
                       o Gender-disaggregate beneficiaries
                       o Talk to men and women
                  • Are women visible in the sector?
                       o Ascertain the general the gender division of labor.
                       o Determine whether women’s needs in the sector are the same as those of men
                       o Identify if possible, main sources of income for women and men
                  • What impacts might the project have on women? Is the project likely to have the same
                       positive/negative impacts on women and men?
                  • Does the project have potential for gender-inclusive design and could it effectively and
                       equitably target women?
                  • Identify, if possible, legal, cultural, or religious constraints to women’s potential
                       participation in the project.
                  • Do the executing/implementing agencies have the capacity to deliver benefits to/or
                       involve women?
                  • Will the project fact-finding and project study require the services of specialized gender
                       and development (GAD) expertise to assist with developing a gender inclusive design?

                  Step 8: Assess Possible Adverse and Positive Impacts

       (xx)       In every project, there is the potential for adverse effects on a sector of the population.
                  Ethnic minorities are particularly vulnerable to such effects, as are the very poor, female-
                  headed households, and the disabled. Throughout the SA process, as well as through a
                  Poverty Assessment (PA), adverse effects on vulnerable groups may be able to be avoided

3
    Ibid, p. 22
4
    ADB Gender Checklists: http://www.adb.org/Gender/checklists.asp



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             through recalibration of project design. If such effects are unavoidable, then mitigation
             measures must be built into the project design, to ensure that the groups do not bear undue
             burden as a result of the project. This may take the form of pro-poor legislative initiatives,
             compensation provisions for loss of assets or access to assets, and the establishment of
             grievance mechanisms.

Components of Social Analysis Design

   Data Collection

   (xxi)     The use of high quality data is critical to the formulation of an effective SA, and by extension,
             a successful and sustainable project. There are many data collection methods that may be
             used, as well as numerous appropriate data sources.
   (xxii)    Accurate secondary data sources, obtained from reliable national and local government
             sources, are essential tools for establishing the context in which the program will be
             implemented. This context should be constructed using existing legislation that will affect
             social and economic development programs, as well as available socio-economic data
             regarding such varied topics as income and employment, gender and age distribution,
             availability of health care facilities and providers, and availability of educational services.
             This data can then be used to provide a structure within which the project will be
             implemented and illuminate data gaps and needs, allowing the primary-source data collection
             process to be tailored to the specific needs of the population in question.
   (xxiii)   There are several techniques available for primary-source data collection. Each has unique
             benefits and drawbacks, and the use of multiple techniques is recommended in order to
             ensure that the community is properly represented.              There are four recommended
             techniques:
             1. Key Informant Interviews
             2. Focus Group Discussions
             3. Rapid Appraisal
             4. Small Surveys
   (xxiv)    The first technique used is the Key Informant Interview. In this technique an individual is
             given a survey about the critical issues identified in the secondary data gathering process. In
             addition, the survey will generally seek to determine the informant’s opinions, both positive
             and negative, about the proposed project, its potential impacts, and their needs that might
             possibly be met by the project. Different groups may be targeted with different surveys, such
             as drivers, passengers, households, and shopkeepers. Each survey enumerator must follow
             established methodology to ensure that the surveys are valid, and must therefore undergo
             training prior to beginning work.
   (xxv)     Another important primary data collection method is the Focus Group Discussion. Focus
             groups are to be conducted by group facilitators, and will consist of varied groups of
             stakeholders. These guided discussions are intended to spark a participatory dialogue
             among stakeholders to determine public opinion, felt needs, and dynamics among
             stakeholder groups, as well as promote awareness of the project and increase public
             knowledge about its proposed implementation. Targeted focus groups, designed to gain
             input from a particular demographic in one session, will also help to provide additional insight
             on the needs or opinions of a specific group, allowing for more in-depth exploration of the
             needs of separate stakeholder groups. Though potentially difficult to organize, this method of
             data collection is a critical component and provides a representative assessment of
             stakeholders agreed upon demands, felt needs and opinions concerning proposed project
             work, costs and benefits. To the extent possible, focus group discussions should be
             incorporated into the data collection methodology.
   (xxvi)    A Rapid Appraisal is a data collection technique designed to gather essential information as
             quickly and efficiently as possible, through the use of targeted surveys and discussions.
             There are several key components of a Rapid Appraisal, including participation by the local
             population, teamwork among a group of diverse local and expatriate professionals, flexibility
             with regard to the appropriate data collection methods for the given environment, gathering


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              only that information which is directly necessary to provide recommendations and make
              preliminary decisions, and using at least three sources or techniques to gather data on a
              given topic, to ensure reliability of the qualitative data5 .
      (xxvii) Finally, the use of small surveys, specifically targeted for a specific group, may also provide
              insights into the needs and wants of a community, as well as the unique vulnerabilities of that
              particular group. These surveys may be used as either a precursor or a complement to a
              more comprehensive socio-economic survey.

      Zone of Influence and Stakeholder/Project Affected Area Identification

      (xxviii) A stakeholder needs assessment requires several key pieces of information to accurately
               determine both the objective and felt needs of the relevant stakeholders. First of all, the
               stakeholder groups and the ZOI must be identified. This may be done using the results of a
               Poverty Impact Assessment, if one has been performed. The poverty impact ratio of a
               project, as well as the estimated distribution of benefits, will help to distinguish those groups
               likely to experience both positive and negative impacts as a result of the project. The degree
               to which any group will experience negative impacts may necessitate mitigating actions
               further on.

      Stakeholder Needs and Demands Assessment

      (xxix)  Through on-the-ground appraisals, project staff must estimate access to essential services
              for those in the project area. Such services include educational and healthcare facilities, as
              well as access to potable water, food sources, markets, electricity, and more advanced social
              services, such as agricultural extension services. In addition to access, the quality of such
              services is also an important socio-economic indicator to determine hardships faced by
              different stakeholders.
      (xxx) This on-the-ground appraisal will allow the project staff to determine objective needs, such as
              the need to improve the quality of a particular road that facilitates the movement of goods and
              services or provides transport to hospitals, schools or other central locations. Through
              discussions with stakeholders, felt needs may be determined. A critical element of project
              design will be to harmonize the objective needs with the felt needs of the community. This
              inclusive approach generates community buy-in and cooperation within communities directly
              affected by these projects. Project staff should also use their objective needs analysis, in
              combination with the felt needs derived from the community, to prioritize needs in the context
              of the most complete information available.
      (xxxi) If demand for a project is inadequate, the sustainability of the project may reasonably be
              brought into question. In order to determine demand, not only must a needs assessment be
              done, but the current alternatives to the project must be examined. For a transportation
              infrastructure project, for example, existing transport options must first be examined. In order
              for a project to be justifiable and viable, a shortage of acceptable and accessible transport
              options must exist. Each available option must be assessed on the basis of availability or
              convenience, quality and affordability.
      (xxxii) In addition to affordability at an individual level, the ability of the larger community to
              contribute to the costs of the project, either through cash or in-kind contributions of labor or
              other skills must be examined. This will not only give a measure of current project feasibility,
              but can also serve as an indicator of project sustainability and the ability of the community to
              maintain the given infrastructure improvements after the project has closed. An assessment
              must also be made of the ability of the community to afford existing infrastructure. If the
              current infrastructure is not able to be maintained at minimum standards, it is important to
              include sustainable financing mechanisms so that any new infrastructure will be able to be
              maintained and project benefits will have a lasting impact.


5
    http://hq.unhabitat.org/cdrom/governance/html/yellop37.htm




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      (xxxiii) The results of the primary-source data collection will also illustrate which options would be
               most useful to, and most often used by, the population in question. Proposing a project that
               is in line with the stated desire of the community is likely to engender the maximum
               community buy-in. If the will of the community can be made compatible with the objective
               needs as perceived by project design staff, the community willingness to pay is likely to be
               increased, thereby increasing project viability. Iterative discussions with key stakeholders
               may be necessary, in addition to public information campaigns, in order to clarify key points,
               and ensure that the results are acceptable and feasible to all sides.
      (xxxiv) In addition to participation during project implementation, a key element of long-term project
               success is the willingness of stakeholders to stay involved in the project after its initial funding
               has been used up. Therefore, participation in construction and maintenance activities may
               serve as a further indicator of community buy-in and long-range project success and
               sustainability.

      Absorptive Capacity

      (xxxv) Absorptive capacity is defined as the ability of a group to effectively use and maintain a
               proposed service6 . There are several criteria that may be examined to determine absorptive
               capacity. The first is social cohesion, referring to the strength and influence of social
               traditions and social support mechanisms. This criterion can reveal disparities in gender
               roles, crime rates, the degree to which social customs influence behavior, and the role of
               political figures in supporting or obstructing community and infrastructure development.
      (xxxvi) The capacity of community-based organizations must also be assessed, to determine the
               degree to which resources are available in the community to facilitate project implementation
               and mitigation measures, if necessary, and to provide a local partnering agency to enhance
               project legitimacy, from a local perspective. If it is found to be lacking, then project design
               may include measures to increase the capabilities of such organizations through technical
               training, mentoring, or other methods of participatory learning. However, effective community
               organizations can dramatically affect project impacts, helping constituents to maximize
               project benefits. Such measures, though not the direct responsibility of the actual project
               implementers is facilitated through basic means such as information sharing between
               construction workers and community organizations which can act as informed
               representatives of these projects.
      (xxxvii) In a similar way, the skills and knowledge of the proposed client must be assessed in order to
               determine what, if any, support programs, such as training and mentoring, should be
               implemented. In addition, the degree to which the proposed client interacts with other
               agencies or groups that might provide knowledge and information in the project area, and any
               past experience with similar projects will provide information on training and networking
               needs. Finally, the willingness of the community to accept and actively participate in change
               is critical to project success. An understanding of the prevailing problems in the area, and
               the motivation to embrace changes designed to alleviate those problems will facilitate project
               implementation and simplify the process of harmonizing objective needs with felt needs.

      Gender Issues

      (xxxviii) An analysis of gender issues in a community is critical to successful project design. Not only
                do inequalities based on gender have the potential to affect the distribution of project
                benefits, but they can also affect the success with which the project may be implemented.
                For example, if women are restricted in the types of work activities they may pursue, then a
                program may not include utilization of local female labor as part of its project construction and
                poverty alleviation strategies. In such cases, the goal of equitable distribution of benefits
                provides more of a challenge, due to restrictions placed on women in particular societies.


6
    Asian Development Bank. Handbook on Poverty and Social Analysis. December 2001. pg. 22




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      (xxxix) On a more basic level, the ability of women to participate in focus group discussions or freely
              answer questions in a Key Informant Interview can significantly impact the quality of data
              gathered. Enumerator teams must be composed of both men and women, and if possible,
              women should be interviewed in private. If men are present, some women will be less likely
              to answer health related questions, particularly as they apply to reproductive issues.
              Furthermore, on matters of finances and access to markets, among others, women are more
              likely to defer to men in group interviews, regardless of whether or not they may have more
              accurate information on or understanding of the particular topic.
      (xl)    Additionally, the role of women in community-based decisions may affect project design.
              They may have unique insights on the gender-specific needs of which the men in the
              community may be unaware. Their level of influence in the community and the decision
              process for infrastructure programs will play a significant role in the resulting distribution of
              benefits among men and women, and may serve to improve their quality of life. Through the
              actions of women in the public sphere as well as women-only and mixed-gender focus group
              discussions, and individual interviews, women’s priorities may be brought forward.
              Knowledge of specific project components or courses of action that may be taken to improve
              the quality of life for women will provide project staff with techniques for ensuring that women
              receive needed and equal project benefits.

      Potential Adverse Impacts

      (xli)     Any potential negative impacts on poor and vulnerable groups identified during the
                preparation of the social analysis will be eliminated due to changes in the design of the policy
                conditions, or mitigated through specific social protection or mitigation measures to be
                included in the project design and costed as part of the total project cost.

                Road Safety

      (xlii)    As part of road projects, the presence of work crews as a result of project construction, and
                the resulting road improvements can present several unique concerns that can be mitigated
                through several measures. An increase in traffic, or an increase in the speed at which traffic
                may travel on the road, may result in increased vehicular fatalities.

                Public Health

      (xliii)   In addition, issues of sexual assault, sex trafficking, and the spread of STIs may result from
                the increased presence of work crews or long-haul drivers staying temporarily in villages
                along the road. These ancillary issues are closely linked to gender concerns and should be
                considered in the data collection process.

      Potential Positive Impacts

      (xliv)    Any potential positive impacts from a project should be fully enhanced by a social analysis to
                make the positive impacts more inclusive for all stakeholders, especially the poor and other
                vulnerable groups.

                Access to Education

      (xlv)     Ensuring that the poor can gain access to and control of goods and services is critical for
                effective poverty reduction. Building the assets of the poor and excluded groups is
                fundamental to expanding economic opportunity. Poverty means lack of a range of assets as
                well as a lack of opportunities to acquire or access them.7


7
    ADB Handbook on Poverty and Social Analysis, A Working Document: December 2001




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      (xlvi)     Ensuring access to education is a key component that can be considered for inclusion in the
                 design of projects to make benefits more accessible to the poor. Potential positive impacts of
                 incorporating the access to education include:
                 • Reduced distance to primary/secondary schools
                 • Increased school enrollment
                 • Increased school attendance
                 • Less cost associated with attending school because travel time is reduced
                 • Increased literacy rates that benefit the nation/country as a whole (increased human
                     capital)

                 Access to Health Care

      (xlvii)    Similar to the access to education, access to health care and health services increases life
                 expectancy, facilitates poverty reduction and reduces spread of epidemic and/or fatal
                 diseases (i.e. malaria, HIV/AIDS)

                 Expansion of Markets

      (xlviii)   Transport projects (i.e. construction of new roads, maintenance of old roads) expand markets
                 and increase employment opportunities. Project design components that may contribute to
                 the expansion of markets and that ensure benefits reach the poor and other vulnerable
                 groups include8 :
                 • Design transport infrastructure projects with feeder roads to provide linkages to poor
                     areas,
                 • Use labor extensive technology, for example, to provide unskilled labor construction
                     opportunities paid at market wages,
                 • Look for synergistic links to adjacent planned or ongoing development programs,
                 • Use local materials suppliers, particularly in poor areas, and
                 • Use pro-poor contracting agencies for hiring of labor and supply of materials.

                 Vulnerable Groups

      (xlix)     Vulnerable groups may include ethnic minorities, the very poor, female-headed households,
                 and the disabled. These groups are classified as particularly vulnerable because they are
                 unlikely to have the financial or social resources that would enable them to recover from a
                 shock of some kind, including negative project impacts. In such instances, special measures
                 must be taken to ensure that mitigation mechanisms are in place to provide a social safety
                 net, and that vulnerable groups do not suffer undue hardship as a result of the project.
                 Negative project impacts may include resettlement, loss of natural resources, loss of cultural
                 resources, loss of access to a livelihood, and loss of financial or commercial resources,
                 among others.
      (l)        In order to understand the potential for vulnerable groups to be affected, a census must be
                 done to determine the number of total stakeholders who live or work in the project right of
                 way, and of those, how many are considered members of vulnerable groups. The census is
                 not conducted during the feasibility stage, but should be conducted prior to the start of the
                 project to ensure there is time for changes to project design, if necessary. In performing a
                 poverty impact analysis, the distribution of project costs and benefits among stakeholders
                 may be ascertained. This distribution will provide a context in which the effects on specific
                 groups may be estimated, and define areas in which mitigation measures will be necessary.
                 Potential mitigation measures or actions will be discussed in the next section.



8
    ADB Handbook on Poverty and Social Analysis, A Working Document: December 2001




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   Mitigation Measures

   (li)      There are several techniques commonly used to mitigate negative project impacts.
             Throughout the project design and implementation process, public involvement and
             awareness is critical. Not only will this help to rapidly call attention to issues that may
             interfere with implementation, such as major public resistance to the project, severe and
             disproportionate impacts on certain influential or vulnerable stakeholders, and on-the-ground
             environmental or social conditions of which the project team is unaware based on their
             research.
   (lii)     If negative impacts from the project are unavoidable despite modifications in project design,
             grievance procedures must be established for those who are negatively affected. These
             procedures must allow for multiple levels of redress so that plaintiffs are given ample
             opportunities to be heard. Based on the poverty impact assessment, the severity of impacts
             on different groups or individuals may be estimated, and from there, mitigation measures
             appropriate to the level of loss may be devised.
   (liii)    Appropriate mitigation measures can range from cash compensation for loss of assets such
             as fruit or timber trees, to assistance in relocating if involuntary resettlement is unavoidable.
             Guidelines for appropriate compensation, as well as criteria for those who are eligible must
             be articulated prior to implementation, and must be done with public involvement and
             according to the guidelines promulgated by the lending agency sponsoring the project. This
             will ensure that the measures being pursued are realistic in the local context and meet with
             the requirements of the financial backers of the project.
   (liv)     Special mitigation measures may need to be identified to meet the unique needs of
             vulnerable groups. A specific plan for ways to minimize impacts on ethnic minorities, for
             example, may be designed to account for unique social characteristics of the group in
             question. Such a plan may include increased support for assimilation into the larger village
             environment, special social services implemented to ensure that traditional agricultural
             practices may be maintained, or other services to allow the group to cope with the project
             impacts and maintain or improve their quality of life.
   (lv)      Public information campaigns can also be tailored to address these concerns. Billboards
             reminding drivers to slow down, wear safety belts, and allow room for pedestrians and
             bicyclists may serve to raise awareness and lower the incidence of road fatalities. As with
             the issue of traffic safety, public information campaigns geared towards both construction
             workers and project affected communities regarding safer sex practices, sexual assault laws,
             and other issues may help stimulate dialogue on the issue.
   (lvi)     These mitigation measures, which will likely be undertaken by the government, shall be
             consistent with established practices regarding resettlement and assistance. However, re-
             evaluation of existing practices should periodically take place and incorporate community
             response to these measures in order to improve these practices and design optimal
             measures that benefit communities and generate support for additional infrastructure
             development.
   (lvii)    Where significant negative impact is likely, a separate mitigation plan is to be prepared in
             consultation with those who would be affected. This includes situations where issues of
             involuntary resettlement, labor, affordability, indigenous peoples, or any other risk that may
             cause vulnerability in communities has been highlighted by the social analysis. Mitigation
             options always aim to achieve adequate balance between social fairness and economic
             sustainability. In proposing a mitigation plan, it may be necessary to:
             • assess the trade-offs of economic/policy reforms, making the social and economic costs
                  and benefits trade-offs transparent;
             • examine mitigation packages carefully to make sure that they are affordable and do not
                  crowd out other social expenditures, and that they do not lead to adverse selection
                  problems; and
             • establish mechanisms to prevent leakages to the nonpoor.
   (lviii)   Such social protection and mitigation measures may include any of the measures set out in
             the table below. These include social protection measures that may be necessary to
             compensate individuals affected by reforms, restore their economic and social base, and


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                                                            Section B: Social and Poverty Analysis Guidelines

                 meet the needs of groups excluded from economic growth. Such measures address
                 immediate humanitarian concerns, support longer-term social development objectives,
                 especially for the poor and excluded, and temper the immediate political costs of reform. The
                 aim is to achieve acceptable levels of social protection in terms of scope and coverage,
                 consistent with the requirements for broad based growth and long-term investment in the
                 social sectors.
        (lix)    The table below shows some examples of potential social costs and possible social
                 action/mitigation measures.9


Social Cost                                    Possible Social Action/Mitigation Measure

Restructuring public or private enterprises       Prepare retrenchment plan
will result in direct labor downsizing.
                                                  Focus on work consultation in the participation strategy
Restructuring may have disproportionate           Prepare a Gender Action Plan
costs for women in the workforce
because of the gender division of labor.

Restructuring may lead to divestiture of          Quarantine essential services from divestiture.
social services such as housing, health
                                                  Search for alternative financing options for nonessential
care, and education facilities.
                                                  services.
                                                  Introduce measures to streamline services to achieve cost
                                                  savings.
                                                  Introduce self-financing options.
                                                  Prepare retrenchment plan for any workers losing jobs from
                                                  divested services.
Costs may increase for goods that the             Introduce compensatory cash transfers, consumer subsidies,
poor and excluded utilize directly.               or social funds directly targeting the poor to ensure basic
                                                  supplies of essential goods, ensuring adequate phasing out of
                                                  such programs.
Mitigation measures may be diverted               Build capacity and transparent systems for effective agencies,
from or inefficiently delivered to the poor       including data collection, participation, and targeting.
and excluded.
                                                  Include appropriate loan covenant.
                                                  Ensure adequate monitoring to secure effective protection of
                                                  the poor.
Costs may increase for services that the          Quarantine essential services expenditure from budget cuts.
poor and excluded utilize directly.
                                                  Cross-subsidize services and utilities to reduce the cost to
                                                  small consumers or to provide an optional low service level
                                                  (e.g., community stand pipes for water supply, lifeline electricity
                                                  tariff).
                                                  Provide temporary subsidies to allow poor households’
                                                  connection to public utilities.
                                                  In countries with a high percentage (30 percent of total
                                                  population) of children and youth, secure basic services for
                                                  children via schools (i.e., nutrition, immunization, heating
                                                  during the day, basic health assistance).


  9
      ADB Handbook on Poverty and Social Analysis, A Working Document. December 2001. p. 24




                             CPCS Transcom – Louis Berger International Consortium
Technical Assistance Consultant’s Report




Project Number: Tar 37125, TA No. 4322-PRC
June 2006




People’s Republic of China:

Poverty Impact of Area Wide Road Networks

Financed by the Poverty Reduction Cooperation Fund


IMPROVED GUIDELINES FOR ROAD NETWORK
FEASIBILITY STUDY:
RESETTLEMENT GUIDELINES
Prepared by
CPCS Transcom - Louis Berger International Consortium
Ottawa, Canada & Washington D.C., United States


For Ministry of Communications, People’s Republic of China

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and
ADB and the Government cannot be held liable for its contents. (For project preparatory technical
assistance: All the views expressed herein may not be incorporated into the proposed project’s design.)
                                                                               Improved Guidelines for Road Network Feasibility Study
                                                                                                  Section C: Resettlement Guidelines

                                                               TABLE OF CONTENTS

                                                                                                                                                                 Page
Preface ...............................................................................................................................................................1

Introduction .........................................................................................................................................................1

Resettlement Plans at the Feasibility Stage.......................................................................................................2

Land Use and Assessment of Project Design ....................................................................................................3
  Proposal Assessment .....................................................................................................................................3

Legal Issues and the Feasibility of Land Acquisition..........................................................................................4
  Urban Resettlement ........................................................................................................................................6
  Rural Resettlement .........................................................................................................................................6
  Restoration Plans............................................................................................................................................7

Risk Assessment ................................................................................................................................................7

Short Resettlement Plan: A Recommended Outline ..........................................................................................8
  Topic Contents ................................................................................................................................................8




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                                                                   Section C: Resettlement Guidelines

                                             SECTION C:

                                  RESETTLEMENT GUIDELINES

Preface

   (i)     These guidelines have been prepared for the Government of the People’s Republic of China
           (PRC) to provide guidance in assembling Resettlement Plans (RPs) for road network projects
           that involve project affected persons (PAPs) in accordance with the Asian Development
           Bank’s (ADB) Handbook on Resettlement: A Guide to Good Practice (1998) at the Feasibility
           Stage. These guidelines are designed to provide assistance for compliance with ADB
           requirements, and do not provide specific guidance on resettlement requirements under PRC
           regulations. The guidelines are designed to provide guidance to PRC Executing Agencies
           (EA), Implementing Agencies (IA), consultants, construction contractors, and project
           managers.
   (ii)    When projects involve ADB-derived funds, ADB resettlement guidelines will need to be
           applied wherever PRC laws and regulations provide coverage that is less than that provided
           by the ADB Guidelines for PAPs. ADB guidelines should be applied only when host country
           standards do not provide the same minimum level of protection as those defined by the ADB.
           This means that when the host country calls for a resettlement action plan for a given project
           (i.e. compensation detailed in the PRC Land Administration Law), yet the ADB specifies for a
           more detailed resettlement action plan or higher compensation, the ADB’s specifications
           must be followed.
   (iii)   After a number of applications of the Guidelines to ADB-funded projects, the desire is for the
           PRC MOC and Provincial Governments to modify these Guidelines for use with the ARNM for
           road network planning for projects not funded by the ADB. In this eventual outcome, these
           Guidelines will change, and give the MOC and Provincial Governments an example of
           international good practices to use to prepare detailed network- oriented feasibility studies.

Introduction

   (iv)    Resettlement for communities and project affected persons (PAPs), who experience
           unavoidable loss due to a new or rehabilitated set of roads and must be involuntarily
           resettled, requires a detailed course of action. Because alignments will be updated during
           preliminary design and again after detailed design and the detailed measurement survey, the
           steps necessary at the feasibility study stage are preliminary, and the beginning of a phased
           approach to resettlement. Still, at the feasibility stage, a preliminary Resettlement Plan (RP)
           must be developed if the projects are likely to require compensation for temporary or
           permanent involuntary resettlement. The preliminary RP must be based on the following
           components:
           • Relevant laws, regulations and policies for resettlement activities;
           • Identification of potential PAPs;
           • Categories of lands to be acquired;
           • Quantities of lands to be acquired;
           • Land compensation ratio;
           • Working plan for land acquisition;
           • Amount of people in need of resettlement;
           • Resettlement standards;
           • Resettlement plan;
           • Categories of buildings to be dismantled;
           • Quantities of dismantlement;
           • Dismantlement subsidy ratio;
           • Relocation plan;
           • Liabilities;



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            • Effect evaluation; and
            • Any policy and countermeasure recommendations.
   (v)      There are instances where a development intervention such as upgrading or rehabilitating a
            road and a road network adversely affects a group of people. In such cases, the people who
            may be adversely affected by the development intervention should be identified and
            consulted at the feasibility stage. They will ultimately need to be compensated for their
            losses and assisted in rebuilding their homes and communities, re-establishing their
            enterprises, and developing their potential as productive members of society. The final RP
            that is prepared just prior to project implementation must ensure that the PAPs are left at a
            level at least equivalent, if not better, than that which would have prevailed in the absence of
            the development intervention.
   (vi)     The RP addresses the needs of groups of people who are adversely affected by a
            development project. The initial stages of the Resettlement Action Plan should start at the
            beginning of every road network feasibility study. The initial stages of the feasibility study
            require the social/resettlement specialists and the design engineers to identify the people and
            properties that may be beneficially or adversely affected by the project. At the feasibility
            stage the engineers must find a solution to design that will minimize the requirements for
            resettlement. If the network plan requires an upgrade to an expressway, engineers should
            consider alternate alignments if the upgrades will significantly affect the properties in villages
            and urban areas. The loss of productive agricultural land and forests should be avoided or
            minimized. If, after all possible alternative alignments have been examined and still it
            appears that resettlement as a likely project component, a preliminary resettlement action
            plan must be prepared, together with the preparation of the project feasibility study.
   (vii)    A detailed resettlement action plan with specified time-bound actions and a budget are
            required when population displacement is unavoidable, but this will be done at later stages in
            the project cycle. At the feasibility study stage, it is too early in the process for a detailed
            assessment, but an initial assessment must be conducted. For example, if resettlement is
            identified as a nontrivial component in the early stages of the feasibility study, the
            social/resettlement experts must assess the number of people to be resettled and the
            availability of relocation sites, but would not plan the relocation sites at this stage.
   (viii)   Most important, the experts must estimate the costs of resettlement for the proposed project,
            and provide those estimates to the economists doing the cost-benefit analysis. These cost
            estimates must be based on replacement value using current market prices. Since previous
            RPs have underestimated the costs of land acquisition, this estimation must be done as
            accurately as possible during the feasibility study stage.
   (ix)     Many development projects that require the involuntary displacement of people generally
            have adverse economic, social, and environmental impacts on these displaced people.
            Homes are abandoned, production systems are dismantled, and productive assets and
            income sources are lost. Displaced people may be relocated to environments where their
            skills may be less applicable, the competition for resources greater and where host
            populations may be hostile or have substantially different cultural norms or values,
            introducing a new social dynamic and/or potential tension.
   (x)      Therefore, the proper understanding of involuntary resettlement, with its social, cultural,
            psychological, economic and environmental ramifications, has strategic ramifications
            because it may lead to a different choice of project options and resettlement actions. The
            social acceptance of a project by the affected people may also be critical for a project to
            proceed without costly delays and adjustments. This involves a social analysis that is also
            carried out as part of the feasibility study. (See the FS Guidelines for a Social Analysis).

Resettlement Plans at the Feasibility Stage

   (xi)     At the feasibility stage, RPs often only include estimates of the number of PAPs, and the
            degree of impacts on their assets, livelihoods, and communities. Often these studies have
            included only physical measures of the likely impacts on those who likely will be resettled.
            Thus, at the feasibility study sate, at least preliminary cost estimates need to be formulated
            for the economic analysis, and alternative site for relocation identified.


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    (xii)    Reviews of completed projects done by several international development aid agencies show
             that good resettlement plans can prevent impoverishment of affected persons and can even
             reduce their poverty by building more sustainable livelihoods. However, inadequate
             resettlement induces local resistance to the project, increases political tensions, causes
             significant project delays and postpones the flow of project benefits. Resettlement plans that
             are of high quality and implemented well will improve project quality and impact. It will also
             promote more equitable development. The work done to prepare a preliminary RP must be
             solid enough to support the development of the final RP after the detailed design or detailed
             measurements have been made.
    (xiii)   The three key components of a completed RP must include:
             1. Compensation for lost assets and loss of livelihood and income,
             2. Assistance with relocation including provision of relocation sites with appropriate facilities
                  and services, and
             3. Assistance with rehabilitation to achieve at least the same level of well-being for the
                  PAPs with the project as without it.
    (xiv)    The goal of the preliminary RP at the feasibility stage is to set the groundwork for the above
             components. The development of the RP over the life-cycle of the project’s implementation
             needs to be tracked in a carefully designed Monitoring and Evaluation Plan (see the FS
             Guidelines on designing a good Monitoring and Evaluation Plan).
    (xv)     As part of any resettlement plan at the feasibility study stage is a program to disseminate
             information about the proposed network improvements through public media such as
             newspapers, radio, public notices, and meetings at township and village levels to promote
             understanding and support from all communities in the project area. A resettlement
             information booklet should be distributed to people in the project area. In addition to the
             information campaign, affected households should be encouraged to participate in land
             acquisition and resettlement activities. A Grievance System must also be established. This
             has been done successfully in a number of projects in the PRC involving resettlement; the
             system must include a mechanism to register complaints by any persons affected by the
             Project.1

Land Use and Assessment of Project Design

    (xvi)    The guidelines below are to be implemented as part of any Resettlement Plan, and need to
             be considered at the feasibility study stage in developing the preliminary RP.

    Proposal Assessment

    (xvii)   The assessment of site proposals, in this case different road alignments or upgrading options
             for roads in the network under consideration, shall comply with the following requirements:
             • Assess whether proposals have been compared for site selection, whether the selected
                  proposal is in line with local socioeconomic development programs and is coordinated in
                  terms of relations with surrounding villages, towns and industrial and mining
                  establishments;
             • Assess whether the principles of being adaptive to local realities, saving land use,
                  occupying less land and reducing resettlement have been implemented and whether
                  local government and people can accept the proposed project;
             • Assess whether site selection meets actual needs and is good for reasonable
                  arrangements at site areas and safe operation;
             • Assess whether the selection is good for protecting the natural environment and
                  ecological balance and for protecting scenic spots, cultural relics and historical sites;
             • For projects to be constructed in phases, determine whether room for further
                  development in the area of land acquisition has been considered.
1
  The PRC: Shanxi Road Development II Project Resettlement Plan included an information dissemination campaign
and a system for registering complaints. Compensation was determined by using the AAOV (annual average output
value) process.



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                                                                       Section C: Resettlement Guidelines

    (xviii)   The assessment of land use proposals should ensure the following items are included or
              reviewed:
              • The basis and scope of land use, and the size and categories of land to be used;
              • The legality of land-acquiring methods;
              • Land use compliance with requirements of land use plans;
              • Land use proposals must be in line with the requirements for the strictest protection of
                  arable land;

Legal Issues and the Feasibility of Land Acquisition

    (xix)     The assessment of the legal issues and the feasibility of methods to acquire land include the
              following, and should be followed in preparing the preliminary RP at the feasibility study
              stage:
    (xx)      According to PRC law, land allocation shall be free for use by infrastructure projects including
              energy, transport and water projects and the legality of land allocation shall be assessed.
              Analysis shall be made on whether the proposed project belongs to one of the following types
              of projects acquiring land through land allocation:
              • Land use for government departments and military establishments;
              • Land use for urban infrastructure and public utilities;
              • Land use for government-supported key infrastructure such as energy, transportation and
                   water resources, etc.;
              • Land use for other purposes as stipulated in laws and regulations.
    (xxi)     Construction projects acquiring land use rights through the paid-use methods such as land
              sales shall pay land use costs and other fees according to state-stipulated standards and
              procedures, after which they can use the land.
    (xxii)    Land acquisition refers to the activities to obtain land use for construction projects of public
              facilities and public goods under which land ownership is transferred between the state and
              rural collective organizations, is approved according to the authority and procedures
              stipulated in laws to meet the needs of public interests and that land ownership is transferred
              to the state from rural collectives after compensation is paid to rural collective organizations
              and individuals. It is necessary to assess the legality of land acquisition and the feasibility of
              land compensation proposals.2
    (xxiii)   The government protects arable land and strictly controls the transfer of arable land to non-
              arable land. During consultation and assessment, attention shall be paid to the following
              issues:
    (xxiv)    1) Strict compliance by the national systems for protecting basic farmland. The following
              types of land shall be incorporated into basic farmland reserves, strictly managed and will not
              be used for construction purposes:
              • Arable land within the designated grain, cotton and oil-bearing production bases
                   approved by relevant State Council administrations in charge or governments above
                   county level;
              • Arable land with good irrigation and water and soil conservation facilities and medium-
                   and low-yield fields with improvement plans being implemented;
              • Vegetable production bases;
              • Experimental fields for agricultural scientific research and teaching;
              • Other types of arable land that should be included in basic farmland protection areas as
                   specified by the State Council.
    (xxv)     2) Project construction shall save land use. Those that can make use of wasteland cannot
              occupy arable land, and those that can make use of poor quality land cannot occupy quality
              land. Projects having to occupy arable land shall strictly enforce land compensation system.

2
 In the PRC, for rural land acquisition and resettlement, procedures adhere to the Land Administration Law (1998)
and relevant provincial implementation measures, which clarify land rights and provide a basic legal structure and
policy framework for addressing all land acquisition and resettlement issues.




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                                                                       Section C: Resettlement Guidelines

             Those non-agricultural constructions that have been approved to use arable land should
             follow the principle of “reclaiming the exact amount of land occupied” and the units occupying
             arable land shall be responsible for reclaiming the arable land with the same amount and
             quality as the occupied land; those who do not have the conditions to reclaim land or if the
             reclaimed land is not up to the original standard shall pay arable land reclamation costs
             according to relevant regulations and such payments shall be exclusively used for reclaiming
             new land. Assessment shall be made on whether land use proposals comply with relevant
             requirements;
    (xxvi) 3) Projects acquiring agricultural land shall be assessed on whether relevant procedures for
             approving transferred use of arable land and have been completed in advance according to
             law;
    (xxvii) For projects occupying a considerable amount of land including those for water engineering,
             transportation, iron and steel works, industrial parks, development zones, city squares, golf
             courses, thematic parks, university towns and logistics infrastructure, it is necessary to
             assess whether these projects shall be proposed for construction according to the needs of
             socio-economic development and current demand so as to avoid repetitive construction and
             land resource waste. During the demonstration of project proposals, it is necessary to list the
             situation of land occupation as an important consideration for proposal selection. The
             purpose of this is to reduce arable land occupation and give way to basic farmland and cash
             crop areas. No authorities shall raise construction standards or expand construction scale to
             pursue “political-results projects” or “image projects.” It is necessary to make overall
             arrangements for land use for various facilities to improve comprehensive land use efficiency.
    (xxviii) To analyze whether project construction schemes have been designed based on
             technological advancements, innovative design philosophies, optimized design schemes,
             improved design standards and actively adopted new technologies, new techniques and new
             materials, and designed to lower land occupation. Analysis of the possibilities for a proposed
             project to make use of barren hills, barren slopes, wasteland and poor land and to save land
             and protect arable land through adjustments to its proposals is necessary.
    (xxix) The assessment of proposals for land acquisition, demolition, resettlement and restoration
             shall mainly include the following:
             • Population and physical indicators of land acquisition and demolition, including the
                  channels and methods for access to data as well as data effectiveness and reliability;
             • The scope and level of impacts from land acquisition for project construction on the
                  regional economy and society;
             • The principles and justification for developing proposed resettlement and restoration
                  plans as well as the rationality for defining restoration objectives and standards;
             • Rationality of resettlement and restoration size, feasibility of environmental capacity,
                  validity and scientific nature of resettlers’ destinations, reliability and viability of proposed
                  schemes for productive restoration, feasibility of proposals during restoration and
                  transitional periods; special arrangements for vulnerable groups and viability of such
                  arrangements;
             • Principles for determining compensation costs, integrity of compensation items, rationality
                  of unit price of compensation, situation of balance of compensation costs and planned
                  investments and reliability of sources of funds.
    (xxx) According to the People Republic of China’s Land Administration Law of 1986 (PRCLAL),
             and amended in 1998, the State owns all urban land, while farmer collectives own all rural
             land. Land users may use the land and own the buildings and improvements on it, but the
             sovereignty of the land remains in the hands of the State or farmer collectives. The rights to
             use land are known as ‘Land Use Rights’ (LURs), and are formally written into the People’s
             Republic of China Assignment and Transfer of Use Rights of State Owned Land in Urban
             Areas Temporary Regulations, 1990 (PRCLUR).3



3
  Chan, Nelson. Land Acquisition Compensation in China – Problems & Answers. International Real Estate Review
2003 Vol. 6 No. 1: pp. 136 - 15



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                                                                     Section C: Resettlement Guidelines

   Urban Resettlement

   (xxxi)   Urban resettlement plans shall be assessed from the following aspects, and should be
            addressed in the preliminary RP done during the feasibility study:
            • To define the scope of permanent land acquisition and temporary land occupation,
               conduct relevant surveys on land acquisition, demolition and moving and analyze
               whether the resettlement and restoration plans are consistent with the realities of project-
               affected groups;
            • To assess the rationality of demolition compensation methods and amounts, settlement
               housing area and sites, moving deadline, methods for moving transition and transition
               deadline. It also needs to assess, during the development of demolition and moving
               proposal, whether there exists uncontrolled expansion of demolition scale and the
               phenomenon of artificial lowering of compensation standards and violating residents’
               legitimate rights with compensation and restoration measures.

   Rural Resettlement

   (xxxii) For the assessment of rural resettlement and restoration proposals, it is necessary to
            determine the number of move-in people and carry out balancing of population resettled
            through production restoration according to resettlers’ production development proposals,
            and comprehensive analysis and demonstration should be carried out based on comparison
            of multiple proposals to propose recommended plan(s). The following principles shall be
            followed:
            • Resettlement and restoration districts should have necessary public facilities and
                 productive infrastructure. The restoration or construction of these facilities should at least
                 be targeted at restoring the original production and living standards of resettlers’
                 communities and families, and when possible, the standards should be moderately
                 improved;
            • Coordinated regional development shall be considered in the resettlement plans,
                 analyzing impacts of the move-in resettlers on the original residents in the move-in areas,
                 including on employment, land, use of public facilities, social connection network,
                 pressure on natural resources or social services and potential conflicts from such
                 pressure. It is also necessary to give comprehensive considerations to proposals for
                 socio-economic development and social integration in these plans.
            • To analyze the costs needed for public facilities and service systems for community
                 schools, clinic, village committee, roads, water supply, power supply, communication,
                 drainage and sanitation and degree of their financing assurance;
            • Those projects involving land acquisition of rural collective economic organizations shall
                 avoid violating farmers’ land interests in the process of land acquisition.
   (xxxiii) Projects acquiring land of rural collective economic organizations shall be assessed on the
            rationality of land compensation payments.
            • Land compensation shall refer to the compensation for land inputs by and benefit losses
                 of land owners and users whose land is to be taken;
            • Restoration compensation shall refer to the subsidies paid for restoring the livelihood of
                 agricultural population relying on land as their main productive materials and sources of
                 living; the subsidies are calculated based on the number of agricultural population to be
                 restored;
            • Subsidies for land attachments and seedling crops, such as houses, wells, trees and
                 crops that are still growing but cannot be harvested, etc.
   (xxxiv) The following principles shall be followed for land compensation:
            • To maintain the original living standards of land-taken farmers. It is needed to ensure that
                 their living standards are not lowered through land compensation and their interests are
                 not harmed because of land acquisition;
            • To compensate in accordance with the original purposes (uses) of land to be acquired.
                 The land acquisition compensation standards and scope shall not be changed due to



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                 changes in land use after acquisition, but to determine compensation standards and
                 scope according to its original uses. Compensation for land attachments and personnel
                 settlement shall follow the same principles.

         Restoration Plans

    (xxxv) Restoration plans are an important component of resettlement where affected persons have
            lost their productive base, businesses, jobs, or other income sources, regardless of whether
            they have lost their houses.4 This needs to be considered for the preliminary RP during the
            feasibility study stage because it affects the cost estimates of the resettlement. The linkages
            between relocation and income generation activities need to be considered, for example, the
            standard of living and quality of life for affected persons in the new sites will be linked to good
            access to and control over resources (i.e. land) or income generating sources (i.e.
            employment, businesses). Issues to be evaluated as part of a restoration plan include : 5
            • How will the project affect sources of income and livelihood?
            • What are the income levels of the affected persons?
            • Are there other non-monetary sources of livelihood?
            • Is replacement agricultural land available?
            • Will it be possible to continue with agricultural activity?
            • Are there any ongoing income-generating or livelihood development programs in the
                 project area?
    (xxxvi) For people unavoidably affected by a Project, the resettlement objective is to ensure
            attainment of equal or better livelihoods and living standards in line with the People's
            Republic of China (PRC) Land Administration Law (1998) and the Asian Development Bank
            (ADB) policy on involuntary resettlement (1995). The Executing Agency ensures that any
            people losing land, housing or other assets and means of production will be assisted in
            restoring their incomes and living standards to at least the levels without the Project's
            intervention.

Risk Assessment

    (xxxvii) Risk assessment is a very important component of the preliminary RP at the feasibility study
              stage and can be conducted by the proper social science specialists. “Risk” is defined as the
              possibility of suffering some form of loss or damage arising from a specific action or process.
              These losses and adverse impacts are mostly felt in household income, livelihoods, dwellings
              and social capital.6
    (xxxviii) The assessment of resettlement proposals shall focus on the potential losses and risks
              resulting from resettlement and proposing measures to minimize risks. The assessment risks
              include:
              • Risks from loss of land resources which leads to the losses of existing and future sources
                   of income;
              • The increased risks from the depreciation of labor, productive and management skills;
              • Risks from the losses of social networks and social capital;
              • Risks from losses of housing and other properties;

4
  In the PRC, in all cases, the Average Annual Output Value (AAOV), averaged over the previous three years, is
fundamental to the calculation of compensation. The AAOV is based on socioeconomic investigations and household
surveys. Compensation rates also take account of both national and provincial regulations concerning compensation,
and rates established for other projects. Further, in the future, these estimates must take into account current
market prices.
5
  ADB Handbook on Resettlement: A Guide to Good Practice, 1998
6
  ADB RETA 6091 Capacity Building for Resettlement Risk Management: Summary of National Workshop in New
Delhi, India 26 August 2005 http://www.adb.org/Documents/Events/2005/Capacity-Building-for-Resettlement-
IND/default.asp




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            • Risks from losses of habitats, cultural places and public service facilities, etc.
    (xxxix) Three risks that affect land loss farmers include:
            • Reduction of income according to proportion of the holding requisitioned,
            • Difficulties in employment after land acquisition,
            • Job insecurity and poor long-term guarantees of livelihood.
    (xl)    The measures for capacity building for risk management of land acquisition resettlement are
            to:
            • Specify the scope of rights of land requisition and standardize the behavior of the
                government;
            • Acknowledge the property rights of farmers and collectives on land and offer
                compensation for requisitioned land according to the principle of market economy;
            • Establish employment promotion mechanisms for affected farmers and a basic living
                guarantee system with a view to ensuring long-term livelihood.
            • Transparent and participatory resettlement planning process is necessary to minimize
                risks associated with displacement and impoverishment.
            • Need for proper identification and categorization of affected persons by type of project
                impact.
            • Importance of complementary and supportive policy and legal framework.
            • Adequate and participatory planning for income restoration; relocation site selection;
                safeguarding the interests of vulnerable groups and the host community.
            • Accurate land acquisition plans are important to avoid large scale deviations in survey
                results and unidentified impact categories during implementation
            • Efforts should be made to integrate social inputs in deciding the alignment and design.
    (xli)   People displaced by development projects often have to move elsewhere to start a new life.
            There is a strong element of pressure in displacement which disrupts long established social
            networks which sustain communities. For those forced to resettle at new locations,
            displacement can be an unmitigated disaster. Conducting a risk assessment enables a
            project team to mitigate the risks of impoverishment arising from involuntary resettlement
            through identification of impoverishment risks associated with displacement, dispossession
            and denial of access to income sources, and management of risks through development
            strategies customized for the specific country. 7
    (xlii)  Most important in a risk assessment at the feasibility stage for a preliminary RP is evaluating
            the risk that the cost estimates of resettlement are too low.            This leads to undue
            complications in the project implementation process and also skews the economic analysis of
            the feasibility study. If the economic analysis understates estimated costs, projects will be
            approve where the discounted net present value will not yield a rate or return equal to or
            higher than 12 percent.

Short Resettlement Plan: A Recommended Outline

    (xliii)   In preparing the preliminary RP, the resettlement and social experts must work with the
              economists and engineers to ensure the following topics are adequately covered in the
              document.

    Topic Contents

              •   Describe alternative options, if any, considered that would minimize land acquisition and
                  its effects, and why the remaining effects are unavoidable.



7
  ADB RETA 6091 Capacity Building for Resettlement Risk Management: Summary of National Workshop in New
Delhi, India 26 August 2005 http://www.adb.org/Documents/Events/2005/Capacity-Building-for-Resettlement-
IND/default.asp




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         •   Summarize key effects in terms of land acquired, assets lost, and people displaced from
             homes or livelihoods.
         •   Describe key national and local land, compensation and resettlement policies, laws, and
             guidelines that apply to the project.
         •   Explain how Bank policy on Involuntary Resettlement will be achieved.
         •   Describe consultation processes and procedures for redress of grievances.
         •   Describe arrangements for valuing and disbursing compensation.
         •   Describe arrangements for housing relocation, including transfer and establishment.
         •   Describe income restoration measures to be implemented.
         •   Identify any environmental risks, describe management and monitoring steps.
         •   Identify main tasks and responsibilities in planning, managing and monitoring land
             acquisition and resettlement.
         •   Identify land acquisition and resettlement costs and funding sources.
         •   Provide time schedule showing how people affected will be provided for before demolition
             begins.
         •   Specify arrangements for Monitoring and Evaluation.

                 o   Scope of land acquisition and resettlement
                 o   Objectives, policy framework, and entitlements
                 o   Consultation and grievance redress participation
                 o   Compensation, relocation, and income restoration
                 o   Institutional framework
                 o   Resettlement budget and financing
                 o   Implementation schedule
                 o   Monitoring and evaluation—indicator definitions




                     CPCS Transcom – Louis Berger International Consortium
Technical Assistance Consultant’s Report




Project Number: Tar 37125, TA No. 4322-PRC
June 2006




People’s Republic of China:

Poverty Impact of Area Wide Road Networks

Financed by the Poverty Reduction Cooperation Fund


IMPROVED GUIDELINES FOR ROAD NETWORK
FEASIBILITY STUDY:
MONITORING AND EVALUATION GUIDELINES
Prepared by
CPCS Transcom - Louis Berger International Consortium
Ottawa, Canada & Washington D.C., United States


For Ministry of Communications, People’s Republic of China

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and
ADB and the Government cannot be held liable for its contents. (For project preparatory technical
assistance: All the views expressed herein may not be incorporated into the proposed project’s design.)
                                                                               Improved Guidelines for Road Network Feasibility Study
                                                                                      Section D: Monitoring and Evaluation Guidelines

                                                               TABLE OF CONTENTS

                                                                                                                                                                Page
Introduction .........................................................................................................................................................1

Objectives ...........................................................................................................................................................1

Sources of Information .......................................................................................................................................2

Prepare and/or Refine Mitigation Plans..............................................................................................................2

Implementation of Environmental Management Plan.........................................................................................4
  Pre-Construction Phase..................................................................................................................................4
  Construction Phase.........................................................................................................................................4
  Post-Construction Phase ................................................................................................................................5

Implementation of Resettlement Action Plan .....................................................................................................5
  Pre-construction Phase...................................................................................................................................5
  Construction Phase.........................................................................................................................................5
  Post-Construction Phase ................................................................................................................................6

Implementation of Adverse Social Impacts Mitigation Plan ...............................................................................6
  Pre-construction Phase...................................................................................................................................6
  Construction Phase.........................................................................................................................................6
  Post-construction Phase .................................................................................................................................6

Implementation of Complementary Actions Implementation Plan......................................................................7
  Pre-construction Phase...................................................................................................................................7
  Construction Phase.........................................................................................................................................7
  Post-Construction Phase ................................................................................................................................7

Tracking Impacts of Project : Post-Construction ................................................................................................7

Formulate and Ensure Implementation of Corrective Policy Recommendations...............................................8

Appendix 1..........................................................................................................................................................9
  Process Monitoring .........................................................................................................................................9
  New Monitoring System Proposed in TA3900-PRC .......................................................................................9
  M&E Systems for Road Network Projects Modified for Poverty Reduction Goals .........................................9

Appendix II: Sample Questionnaires for Monitoring and Evaluation of Area-Wide Road Networks ...............11




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                                             SECTION D:

                        MONITORING AND EVALUATION GUIDELINES

Introduction

   (i)     The new monitoring and evaluation guidelines for feasibility studies presented here represent
           a synthesis of the best practices currently used by the ADB, reflecting international standards
           as well as a new concept of process monitoring for each road in the network and in the region
           served by these networks.            The process monitoring approach makes constant
           recommendations to improve project implementation. The M & E team will then immediately
           work to implement recommended solutions that enhance the project’s performance and
           mitigate adverse impacts.
   (ii)    The most difficult task for the new M&E system is to separate out the effects of economic
           growth and poverty reduction that would have occurred in the absence of the network
           improvements from those induced by improving the network of roads. This is a more serious
           problem for network improvements than for improvements to a single road, because the
           induced regional growth and poverty reduction from an improved network is expected to be
           larger than the induced effects from improving a single road. Moreover, the region’s size to
           be covered for a network improvement will usually be larger than the region affected by the
           improvement to a single road. The new M&E system must address these issues in order to
           accurately reflect the impact of the project.
   (iii)   Monitoring and evaluation studies are usually conducted to determine whether the overall
           project development objectives are met and the intended economic benefits are realized in
           the post project situation. Monitoring and evaluation also measures and quantifies the
           project’s poverty reduction impact. In addition, monitoring and evaluation aids in the
           identification of adverse social impacts and the enforcement of measures to mitigate these
           impacts.
   (iv)    Monitoring and evaluation normally consists of the following phases:
           • The collection of baseline data for each performance indicator identified to measure the
               benefits that accrue to the different groups or sectors that will be impacted by a project.
               Baseline data refers to conditions prior to an intervention, and is normally collected during
               the earliest phase of project implementation. Both current and target values should be
               established for each performance indicator.
           • Collection and analysis of data related to performance indicators during the project life to
               ascertain whether the project is on the right track and any correction in project scope or
               policies will be necessary to achieve the targets.
           • Evaluations carried out at project completion and in selected subsequent years to
               measure the extent to which the intended benefits identified at the beginning of project
               implementation have been achieved.
   (v)     By incorporating the process monitoring concept, the phases described above are
           complemented with the identification of adverse impacts. The monitoring and evaluation
           team will work with project implementers in order to immediately find ways to mitigate
           unexpected impacts.

Objectives

   (vi)    A complete monitoring and evaluation program (M&E) must address one primary set of
           objectives; to determine how effectively project benefits are being realized, the degree to
           which negative effects are present, and what steps may be taken to improve the distribution
           of project benefits. These three components provide the basis for a program that will enable
           a project to be flexible and changeable, thereby maximizing its efficiency.
   (vii)   Initial project design contains a set of assumptions of how the project will impact the targeted
           community at large, and how it will impact specific different groups within the target
           community as well. These assumptions may be codified as forecasts of economic benefits,



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            social impacts, and impacts on poverty through the Distribution and Poverty analysis done as
            part of the Economic Analysis. The groundwork for any successful M&E program lies in the
            determination of appropriate measures of success as well as the milestones that will
            determine the expected and anticipated distribution of benefits. These benchmarks, which
            should be formulated and refined in light of baseline data, provide a point of comparison for
            the results of monitoring data and guide efforts to track the distribution of benefits over time.
            The use of management information systems (MIS) will be critical to storing and organizing
            baseline data, as well as analyzing progress over time and determining if project objectives
            are being met.
   (viii)   Benefits distribution is estimated through baseline and regular, periodic follow-up surveys and
            other primary-source data gathering techniques. The results of the data analysis, which
            includes a Social and Poverty Analysis (SPA), can be used, in conjunction with the initial
            benefits forecasts, to highlight areas that will require further action. Although preliminary
            project preparation may determine whether or not a Resettlement Action Plan or an
            Environmental Management Plan will need to be drafted, such plans may also be prompted
            by the results of monitoring activities, or alternately, refined based on the results of such
            activities. Furthermore, if any negative impacts are identified, a plan to mitigate those
            impacts may be drafted in response, not only to the impacts themselves, but also to
            identifiable underlying causes. Tangible policy recommendations may be tailored to increase
            beneficial social and poverty impacts. In addition, accountability for project progress is an
            important element that must be built into any M&E plan, as projects often have many parties
            involved at all levels of planning, decision making, and implementation. A clear division of
            responsibility and required action will allow for the efficient implementation of project policies.
            Finally, project successes may be built upon to increase positive project impacts, through the
            development of complementary actions.
   (ix)     Effective integration of these initiatives into the project implementation timeline is critical to
            project success and is in keeping with international best practices. Flexibility and adaptability
            will maximize project responsiveness, and enable project staff to more effectively serve their
            target community.

Sources of Information

   (x)      Monitoring and evaluation will utilize as diverse a combination of sources as possible in order
            to capture and document the benefits of area-wide road network improvements. Monitoring
            activities will include the following sources:
            • Field Visits
            • Surveys
            • Focus Groups
            • Key Informant Interviews
            • Informal Meetings
            • Secondary Data

Prepare and/or Refine Mitigation Plans

   (xi)     Per commonly followed safeguard policies, issues such as environmental impact and
            resettlement must be addressed. If it is not possible to modify project design so as to
            eliminate any negative impacts on the environment or to ensure that no loss of assets, or
            access to assets is incurred by anyone, then plans to mitigate these impacts as much as
            possible and provide compensation where appropriate must be created and implemented,
            with the final goal being to have those affected be, at minimum, no worse off than before the
            project began, and ideally to improve their standard of living and the condition of the affected
            natural environment.
   (xii)    An Environmental Study, and environmental monitoring activities, will provide the foundation
            for an Environmental Management Plan (EMP). The baseline study will provide appropriate
            benchmarks for the design of the management plan. The baseline will also be critical in



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            identifying areas of potential adverse impact and areas where mitigation measures may
            reasonably be integrated as part of the project design. These benchmarks will provide
            valuable information for the Project Management Unit (PMU) during the implementation
            process. The environmental policies of the ADB, as well as local and national regulations in
            the People’s Republic of China, should be used as a guide to determine acceptable levels of
            impacts, and areas that will require mitigation actions and monitoring. These policies may
            provide for enforcement measures, which will be another key element of the management
            plan. In addition, a cost estimate for the measures outlined in the plan may be formulated
            and incorporated into the project cost estimate. This study should be done at the feasibility
            stage so that project financing may proceed accordingly.
   (xiii)   If the project will result in any loss of assets, or access to assets, either temporary or
            permanent, then those Project Affected Persons (PAPs) are entitled to compensation, per
            lending agency policy. In order to determine the magnitude of resettlement required by a
            project, a census must be conducted and a subsequent Resettlement Action Plan (RAP)
            must be formulated based on the severity of expected loss. The RAP will consist of a policy
            framework, based on the existing policies of the lending agency regarding resettlement, and
            any relevant local or national legislation. This framework will provide the basis for
            determining entitlement for losses. The RAP will then offer specific definitions of categories
            of land users to determine who may be eligible for compensation, and will detail how
            compensation will be allocated based on the magnitude of the loss incurred. Appropriate
            compensation will be determined through community consultations, using prevailing market
            rates as a guide for the compensation costs of fixed assets. Receiving communities, or those
            communities who will be absorbing PAPs in the event of physical resettlement, must also be
            consulted in the RAP formulation process. Grievance procedures must also be established
            to enable PAPs to provide input after implementation has begun. Most importantly, the RAP
            will detail how resettlement and compensation will be implemented by the PMU, in
            accordance with the overall project timeline.
   (xiv)    Resettlement costs are allocated separately from the project budget, and resettlement
            activities, including compensation, must be completed before the project activities begin.
            Therefore, RAP formulation and implementation are a critical element of project feasibility
            studies. The local governments who fund resettlement activities must also be appropriately
            reimbursed b the MOC or provincial or central governments.
   (xv)     Negative social impacts to a community, or specific groups within a community, will be
            determined based on the results of a Social and Poverty Analysis (SPA) and the DA and
            Poverty Analysis done as part of the Economic Analysis. If negative impacts are unavoidable
            through modification of project design, then a Social Impacts Mitigation Plan (SIMP) must be
            developed. This plan will provide a coherent response to any anticipated negative impacts,
            both detailing the expected impacts, and the measures that may be taken in response. The
            SIMP will complement the RAP, which deals with specific losses and compensation for those
            losses, incurred as a result of the project to a specific portion of the population within the
            Zone of Influence. The SIMP will propose programs and policy initiatives to mitigate negative
            project impacts throughout the community. The SIMP should be formulated in consultation
            with the community and implementing agencies to ensure that its recommendations are
            suitable for the local environment.
   (xvi)    As with the RAP and the EMP, the SIMP must be formulated and incorporated into the
            project feasibility process. The recognition of potential negative impacts at an early stage will
            allow for effective and efficient alleviation beginning with project design. In addition to having
            the opportunity to shape project design, any proposed actions or programs may be
            accounted for in the project budget, and expected impacts may be forecast. The efficacy of
            the SIMP, EMP, and RAP may then also be estimated based on future data gathering
            activities.
   (xvii)   As part of preliminary project work, the Distribution analysis done as part of the Economic
            Analysis may also reveal structural constraints and institutional barriers to project
            implementation and the successful achievement of poverty alleviation goals.
            Recommendations for institutional capacity building may also be included in the
            Complimentary Actions Implementation Plan (CAIP). These may include initiatives and



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             recommendations such as technical support and training that will enable local institutions to
             more effectively manage programs, and specifically to improve efficiency of the specific
             project. This evaluation and the costs thereof, should be part of the feasibility stage of the
             project and included in cost estimates.
   (xviii)   Once these initial institutional inefficiencies are assessed and the mitigation
             recommendations are formed, an institutional monitoring program may also be developed, to
             track structural changes in institutional processes. These data will be critical to thoroughly
             examining project success, determining bottlenecks, and evaluating which recommendations
             were successful and institutionally beneficial, and which were not.

Implementation of Environmental Management Plan

   (xix)     In the case of the environmental impacts of the project, the focus of the monitoring and
             evaluation activities is on assuring that all mitigation measures identified during project
             design and included in the rehabilitation contracts are followed during project implementation.
             As most of these potential environmental impacts are the direct result of the construction
             activities themselves and not the improved infrastructure, the incorporation of environmental
             concerns in the post-implementation evaluations are of less relevance.
   (xx)      Environmental impacts should be monitored in the following areas:
             • Soil and Erosion
             • Water Quality
             • Air Quality
             • Noise
             • Land-Use

   Pre-Construction Phase

   (xxi)     Prior to the start of project construction, baseline environmental data must be assessed to
             formulate the benchmarks and determine environmental vulnerabilities such as fragile
             ecosystems, species vulnerable to habitat fragmentation, increased runoff or siltation of water
             resources, among others. If project design may not be altered to alleviate these impacts, by
             changing the location of a given infrastructure project then mitigation actions must be
             promulgated. These measures may include such techniques as temporary silt fencing,
             planting of appropriate plant species to ensure shoreline stabilization, and others.
   (xxii)    When commencing the bidding and procurement phase, it is important to emphasize that
             environmental mitigation may be necessary, and determine that eligible contractors are not
             only willing to implement these measures as needed, but are also capable of doing so. Such
             measures must be carefully explained to the contractor awarded the contract, and their
             promise to adhere to them a critical element of the bid award process by the PMU. The
             contractor should be aware of the baseline data, what are considered acceptable impact
             levels of vulnerable elements, the specific measures that they are responsible for
             implementing, and the monitoring schedule outlined in the EMP.

   Construction Phase

   (xxiii)   Once construction has begun, M&E must also begin to monitor the environmental
             vulnerabilities determined in the EMP. This may be done through a series of field surveys of
             the elements of concern. The data should be analyzed and compared with the benchmarks
             established by the EMP. If targets are not being met, PMU must address the issue promptly
             with the contractor to determine what may be done to improve the response of target
             indicators, and whether or not mitigation measures specified are being implemented. If
             procedures are being adhered to as detailed in the EMP, then the PMU will need to work with
             the contractor to determine the causes of failure to meet objectives, and why the proposed
             mitigation measures are not as effective as expected. The results of this investigation should
             result in a new mitigation measures to be implemented.



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   (xxiv)   The EMP and the contract should contain enforcement measures to ensure compliance with
            the environmental goals of the project and the required mitigation procedures. These may
            range from mandatory, regular meetings with the PMU to evaluate progress, to withholding
            payment, or imposing fines and fees for noncompliance, and will be done in accordance with
            the policy framework governing environmental management for the project. If procedures are
            still not adhered to, the contract may be terminated as a final measure. The EMP will follow
            relevant national regulations on the EIA for highway construction projects and will also be
            extended to ensure it meets international standards and best practices.

   Post-Construction Phase

   (xxv)    Following construction, the target indicators should continue to be monitored and tracked, to
            evaluate longer-range environmental impacts. In addition true environmental impacts will be
            best assessed as the construction phase passes, and the environment can stabilize in post-
            construction. New environmental surveys will provide data that may be analyzed and
            compared with original baseline data to determine project impacts. If the targets detailed in
            the EMP are not being met, new mitigation and management measures must be developed
            and implemented.

Implementation of Resettlement Action Plan

   Pre-construction Phase

   (xxvi)  Prior to project implementation, a census must be undertaken to determine the breadth of
           resettlement necessitated by a project. Resettlement, referring to involuntary resettlement for
           purposes of this manual, is defined as the unavoidable loss of fixed assets, cultural
           resources, income, or access to income as a result of the project. The census will determine
           how many PAPs, of those who meet eligibility requirements, will be entitled to compensation
           under the RAP. A cut-off date for eligibility for compensation must also be determined, in
           order to minimize opportunism with regard to taking advantage of compensation offered for
           losses.
   (xxvii) Disbursement of funds for compensation and all resettlement activities must be completed
           prior to beginning construction. A comprehensive resettlement program will consist not only
           of relocation and compensation for those who do not relocate, but it will also contain
           rehabilitative measures. These measures are intended to aid PAPs in reestablishing their
           livelihoods and households post-resettlement. A socio-economic baseline survey should be
           performed for all PAPs that will provide benchmarks and indicators of project success. Such
           indicators will include household income, access to food, access to essential services,
           transportation alternatives, access to proper nutrition, access to cultural resources, and
           others. Care should be given to vulnerable groups in resettlement activities, as these groups
           are more sensitive to shocks and disturbances. Such groups include ethnic minorities,
           indigenous peoples, women headed households, and the disabled.

   Construction Phase

   (xxviii) Before clearance to proceed with project construction is given, all compensation and
            relocation must be completed. Once PAPs have been awarded their entitlements, data
            collection should commence to determine indicators of project progress, using the same
            socio-economic survey used to collect baseline data. The use of the same survey instrument
            will ensure that indicators are being assessed in a uniform and methodologically sound
            manner.
   (xxix) These data should be analyzed and compared with project forecasts and goals. If the target
            goals for rehabilitation of PAPs, post-resettlement, are not being met, mitigation measures
            must be formulated and implemented. The overarching goal is to ensure that PAPs do not
            suffer unduly as a result of the project, and will ideally see an improvement of their quality of




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            life. Rehabilitation measures and mitigation activities must be designed with this goal in
            mind.

   Post-Construction Phase

   (xxx)    Periodic surveys of PAPs should be continued and data analyzed against benchmarks and
            targets. If the goals are not being met, and progress falls short, the RAP must be re-
            evaluated. New mitigation measures, including additional compensation and rehabilitative
            assistance such as the initiation of income generating opportunities, provision of services,
            and assistance to receiving communities must be proposed. Through the evaluation of
            project processes and interviews with PAPs, the reasons for the failure to meet targets may
            be determined and used to design new measures that will be more suitable for the needs of
            PAPs and receiving communities. A more detailed outline of the resettlement plan can be
            found in the separate Resettlement Action Plan (RAP).

Implementation of Adverse Social Impacts Mitigation Plan

   Pre-construction Phase

   (xxxi)  In order to determine the current standing of the community before the project, a social
           analysis must be done to gather data on such information as household income, access to
           basic health and educational services, access to transportation alternatives, the affordability
           of those alternatives, and other indicators as appropriate. Additional surveys, such as
           shopkeeper surveys, driver surveys, and passenger surveys may be appropriate to form a
           pre-project baseline.
   (xxxii) The bidding and procurement process must devote special attention to the policies and
           programs detailed in the SIMP, and those responsible for implementing those programs
           should receive education and training as necessary. If the local community requires
           capacity-building exercises and technical training to be able to implement the required
           activities, these exercises and training activities must be built into project implementation and
           budgeting documentation. Community meetings and other public information activities must
           also be undertaken to encourage community buy-in and successful implementation.

   Construction Phase

   (xxxiii) Periodic data gathering must be undertaken to analyze project progress. The same data
            collection instruments that were used to gather baseline information must be used for follow-
            on data collection. Data must then be gathered and analyzed to determine whether or not
            target objectives are being met and negative impacts are being properly ameliorated. If
            indicators show that objectives are not being met, then PMU must meet with the parties
            responsible for the particular mitigating actions, whether they are the local government, the
            contractor, non-governmental organizations, or some combination thereof.
   (xxxiv) Assuming that the mitigation policies and procedures detailed in the SIMP are being followed,
            a program critique must be completed to determine weaknesses that may be resulting in
            failure to meet targets. From this critique, new mitigating measures, policies, and programs
            may be developed and implemented. If mandated policies and procedures are not being
            followed, then enforcement measures may be taken. Such measures should be codified in
            any contracts for services undertaken, and may include mandatory progress reports and
            meetings until targets are consistently achieved, withholding of funds, and contract
            termination if necessary.

   Post-construction Phase

   (xxxv) In the post-construction phase, regular data gathering must be continued to compare
          progress and indicators against goals and forecasts. If targets are not met, and negative
          social impacts are unabated, then new mitigation procedures must be developed


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           cooperatively with the community and implementing agency. It is essential that these
           measures are developed in the context in which they will need to be implemented. Once new
           mitigation activities are developed, implementation procedures and division of responsibility
           must be determined. Implementation should commence as soon as feasible, with regular
           data gathering to determine which measures are successful, and provide overall project
           progress, to ensure that objectives and targets are met.

Implementation of Complementary Actions Implementation Plan

   Pre-construction Phase

   (xxxvi) Prior to construction commencing, evaluations of structural and institutional capacity must be
           undertaken. These evaluations will provide the necessary benchmarks to determine where
           structural weak spots that hinder poverty alleviation activities may exist, and whether or not
           they are improving as a result of project-recommended complimentary actions, per the CAIP.
           These indicators may range from design review time, level of complexity of necessary
           paperwork, and availability of assistance at higher levels, to grievance procedures in place,
           accessibility to local institutions for those affected by the project, and responsiveness to
           complaints. As with all M&E plans, division of responsibility is essential for clear and efficient
           implementation.

   Construction Phase

   (xxxvii) During the construction phase, regular evaluations will be conducted to determine institutional
            progress toward the targets outlined in the CAIP. Failure to meet the targets will necessitate
            reevaluation of the complimentary actions.        If weaknesses are identified, then the
            complimentary actions may be modified to meet the requirements specified.

   Post-Construction Phase

   (xxxviii) In the post-construction phase, regular data gathering will continue to monitor any institutional
             or structural changes as a result of the recommended complimentary actions, and evaluate
             progress against established benchmarks. If goals are not being met to a sufficient standard,
             then additional complimentary actions may need to be formulated and implemented, based
             on an evaluation of the reasons for failure to achieve objectives. Furthermore, these revised
             actions must be targeted toward achieving the overall poverty alleviation objectives.

Tracking Impacts of Project : Post-Construction

   (xxxix) In order to create a long-term M&E program, which will provide valuable data for future
           projects regarding lessons learned, successful mitigation techniques and the environments in
           which they were successful, a schedule must be determined to collect data on a semi-annual
           or annual basis, or as often as is determined to be appropriate. These annual monitoring
           activities will be based on assembled indicators for the forecast economic, social, and
           poverty-reduction outcomes promulgated at the project onset. Based on the goals
           articulated, long-range targets may be formulated, over a five or ten year time horizon, or
           longer as appropriate. Cost concerns may limit the topics covered, however, as project
           impact tracking becomes increasingly accepted and encouraged by IFIs as a method of
           gauging overall project benefits, this practice should be consistently re-evaluated and
           expanded as much as possible to ensure a more complete assessment of project success.
   (xl)    A carefully designed survey instrument is an essential element, as it must be used in each
           monitoring iteration to ensure soundness of data and adherence to recognized research
           methodology. Survey results must be analyzed to determine how closely project progress
           has mirrored the initial forecasts. Reasons for deviation from expected project results may be
           derived from further data analysis, an examination of socio-economic trends, and evaluation



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            of the prevailing policy environment. The results of this analysis will inform future project
            design and implementation procedures, and expectations.

Formulate and Ensure Implementation of Corrective Policy Recommendations

   (xli)    Along with the annual monitoring report, a review of current policies will allow PMU and
            project staff to form policy recommendations intended to address the reasons for project
            underperformance in areas of concern. In addition, successful policies may be highlighted as
            effective for poverty alleviation programs.
   (xlii)   These policy recommendations should be presented to the government agency responsible
            for their implementation and enforcement. If recommendations are taken under advisement
            and implemented, these new policies should be incorporated into long-range M&E activities,
            to determine whether or not they resulted in the expected outcomes and impacts. If policy
            changes are unsuccessful, another iteration of policy review, analysis, and recommendation
            may be undertaken to improve the poverty alleviation policy environment.




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Appendix 1

   Process Monitoring

   (xliii)    The new concept of process monitoring is described in this appendix in order to demonstrate
              the usefulness of this approach in the monitoring and evaluation of area-wide road networks.
              In process monitoring, the monitoring and evaluation is not a passive exercise, but one where
              the monitoring and evaluation team constantly makes recommendations on improving project
              implementation to improve the economic and poverty alleviation impacts of a given project.
              The team’s experience with the use of process monitoring for a World Bank-funded small-
              scale infrastructure project in Vietnam is discussed to demonstrate the success of the
              application of this concept in the area-wide road network context. This review is part of the
              team’s effort to assess the potential negative aspects of the area-wide road network
              improvement program on the poor, and put forward policy recommendations that when
              implemented will mitigate these, as well as any other negative impacts.

   New Monitoring System Proposed in TA3900-PRC

   (xliv)     In TA 3900-PRC, a detailed monitoring and evaluation program was developed. From the
              summary of that report:
   (xlv)      A detailed monitoring framework, to follow through the process by which by the transport cost
              and time savings from road network improvements are translated into increases in income
              and reductions in poverty, has been developed. This system identifies the indicators that
              should be recorded and the “counterfactual” assumption, about what would have happened in
              the absence of the project, against which the indicators should be tested.
   (xlvi)     The full framework is unlikely to be practical for use in project monitoring, so a simplified
              system, based on income and poverty outcomes, has been devised. However, this will also
              require serious baseline surveys, with follow-up over a minimum of 3 to 5 years after project
              completion.
   (xlvii)    The poverty team evaluated the practicality and applicability of the new monitoring framework
              developed in the TA 3900-PRC Report for the monitoring and evaluation system to be
              applied to the ARNM and recommends that the TPU adopts this approach when ARNM is
              used for transportation development planning on a wider scale across the PRC. The team
              incorporated the best elements from the TA 3900-PRC work into the new monitoring and
              evaluation system for ARNM. The team also understands that the data requirements must
              be minimal for the MOC staff to implement on a wider scale once the TPU achieves “buy in”
              from the MOC planners.

   M&E Systems for Road Network Projects Modified for Poverty Reduction Goals

   (xlviii)   There is a key distinction between purposes and goals. Purposes are the direct and
              immediate outcomes of the project and should be observable on completion, while goals are
              linked to ADB’s and overall objectives of the People’s Republic of China, to which the project
              contributes, but cannot, on its own, achieve. The achievement of a purpose can be directly
              monitored, while, almost by definition, the achievement of a goal, on a project by project
              basis, cannot be directly monitored. Poverty reduction, together with economic growth, would
              normally be a goal (and not the purpose) of a road network project.
   (xlix)     In terms of purposes, the new system needs to focus on the size of actual benefits generated
              by the project. In terms of goals, the new system must focus on the distribution of those
              benefits between the poor, very poor and non-poor stakeholder groups. As such, measuring
              the degree to which cost savings are passed on to users of transport services, as well as
              provides of those services, requires that the indicators chosen measure variables useful for
              an analysis of the evolving nature of the structure and performance of the transport services
              markets by different classes of road. The poverty team leader has developed a M&E process
              and system for the poverty-reduction effects of the Tajikistan Road Rehabilitation Project I,




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           and will apply lessons learned from that M&E system to the new system the team developed
           for ARNM.
   (l)     For the World Bank, the poverty team leader is using process monitoring in place of the usual
           M&E activities required by the World Bank for an anti-poverty small-scale rural infrastructure
           project in the 13 poorest Provinces in Vietnam. Process monitoring uses a more
           interventionist approach, where the monitoring teams observe the project’s outcomes to see
           how effectively the project is meeting the goal of reducing poverty.             Based on these
           observations, the monitoring team recommends ways to improve the project’s implementation
           so as to increase the project’s ability and efficiency in achieving the goal of poverty reduction.
           In the ARNM process, the goal of poverty reduction will be evaluated in light of the identified
           structural constraints and the degree to which those constraints have been ameliorated. The
           new M&E system will incorporate, the extent possible, the spirit of process monitoring, where
           the monitoring teams will suggest ways to continue to remove the structural constraints that
           block a larger share of the benefits from accruing to the poor and very poor.




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Appendix II: Sample Questionnaires for Monitoring and Evaluation of Area-Wide Road
Networks

    (li)     The following questionnaires are provided for illustrative purposes of the types of survey
             instruments that may be used.


                                       Questionnaire for Passengers

Date: ____________________                        Surveyor: ____________________
Survey Corridor: ____________________
Survey Location_____________ Rural / Urban (circle one)


Identify the project road corridor for the respondents.


Nearest Market
1. How often do you travel to your nearest market place per month? (circle one)
     a) Less than once
     b) 1-4
     c) 5-8
     d) 9-16
     e) 17+


2. How far is the nearest market place from your house?
                 __________meters / kilometers (circle)
3. Do you use this corridor (i.e. the survey corridor) to go to your nearest market place?
                 Yes / No (circle one)
4. What is the transport method you use most frequently to reach the nearest market? (circle one)
     a) walk                                                  i)   by motorcycle
     b) by car                                                j)   by motorized slow-moving vehicle
                                                                   (such as tractor)
     c) by minibus
                                                              k) by slow-moving manpowered vehicle
     d) by bus
                                                              l)   by slow-moving livestock-powered
     e) by light truck
                                                                   vehicle
     f)    by medium truck
                                                              m) by bicycle
     g) by heavy truck
                                                              n) Other
     h) by articulated truck or tractor-trailer


5. How long does it take you to get to your nearest market place using the method you identified for Q5?
                 __________minutes / hours (circle)




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6. How much does it cost you to get to your nearest market place using the method you identified for
   Q5?
                __________CNY (one way)


7. Are you able to bargain the fare you pay to get to your nearest market place using the method you
   identified for Q5?
                Yes / No (circle one)


8. How often is motorized transport available from your nearest road to your nearest market place?
   (circle one)
     a) Several times a day
     b) Once a day
     c) Once a week
     d) Other, explain __________________________


9. Would you go to other market places if (circle all that apply):
     a) The roads are in better condition
     b) Transportation was less expensive
     c) Transportation methods (such as buses, trucks, etc.) were more frequently available
     d) The other market places were closer
     e) Other reasons, explain ______________________________


Other Frequent Destinations


10. Other than your market places, what is your most frequent destination outside your village/town (Only
    one place)? Please name the place and explain what it is.
                ______________________________
11. How often do you travel to the destination per month?
     a) Less than once
     b) 1-4
     c) 5-8
     d) 9-16
     e) 17+
12. How far is the destination from your house?
                __________meters / kilometers (circle)




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13. Do you use the Project Road Corridor to go to your most frequent destination?
                 Yes / No (circle one)


14. What is the transport method you use most frequently to reach the destination? (circle one)
     a) walk                                                   i)   by motorcycle
     b) by car                                                 j)   by motorized slow-moving vehicle
                                                                    (such as tractor)
     c) by minibus
                                                               k) by slow-moving manpowered vehicle
     d) by bus
                                                               l)   by slow-moving livestock-powered
     e) by light truck
                                                                    vehicle
     f)   by medium truck
                                                               m) by bicycle
     g) by heavy truck
                                                               n) Other
     h) by articulated truck or tractor-trailer


15. How long does it take you to get to the destination using the method you identified for Q14?
                 __________minutes / hours (circle)
16. How much does it cost you to get to the destination using the method you identified for Q14?
                 __________CNY (one way)


17. Are you able to bargain for the fare to get to the destination using the method you identified for Q14?
                 Yes / No (circle one)


Road Improvement


18. How would improved roads affect you? (circle all that apply and explain)
     a) Easier movement                                        f)   Increase in income sources
     b) Reduction in transportation cost                       g) Increase in political involvement
     c) Increased trips to market places                       h) Increased trips to social institutions
                                                                  (such as hospitals, clinics, schools,
     d) Increased sales of products in market
                                                                  banks, etc.)
        places
                                                               i)   Other, explain____________________
     e) More job opportunities


Information on the Respondent


19. How many people live in your household?
                 ______ Persons




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20. If you produce agricultural produce (vegetables, meat, etc.), could you please estimate what
    percentage of the food your household consumes directly comes from your farm/private plot?
    a) = 0%                                                        e) 60% =< 80%
    b) 0% < 20%                                                    f)    80% =< 100%
    c) 20% =< 40%                                                  g) = 100%
    d) 40% =< 60%


21. What are the annual cash expenditures of your household? _________________CNY


22. What are the annual cash expenditures of your household by item below?
                                      Item                                        CNY
      a         Food (To purchase food outside your farm)
      b                              School
      c     Farm inputs (fertilizer, pesticides, plastic, tools, etc.)
      d                             Clothes
      e                     Cigarettes and alcohol
      f                            Electricity
      g                      Fuel, wood, and coal
      h                  Hospital and clinic services
       i                           Medicines
       j                     Other grocery items
      k           Construction materials (to fix house, etc.)
       l                        Transportation



23. If you have no idea of the detailed expenditure in your household, would you please make an
    estimate of how much expenditure in your household last year?< CNY 1,000
    a) CNY 1,000 =< 2,000                                          d) CNY 4,000 =< 5,000
    b) CNY 2,000 =< 3,000                                          e) CNY 5,000 =< 6,000
    c) CNY 3,000 =< 4,000                                          f)    CNY 6,000 =<


24. What is your religion? (circle one)
    a) Buddhist                                                    c) Christian
    b) Muslim                                                      d) Other


25. What is your ethnicity? (circle one)
    a) Han
    b) Other


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    If other, select one from the following:
    1)   Zhuang                            20) Lisu                              39) Achang
    2)   Manchu                            21) Gelao                             40) Nu
    3)   Hui                               22) Lahu                              41) Ewenki
    4)   Miao                              23) Dongxiang                         42) Gin
    5)   Uygur                             24) Va                                43) Jino
    6)   Yi                                25) Sui                               44) De’ang
    7)   Tujia                             26) Naxi                              45) Uzbek
    8)   Mongol                            27) Qiang                             46) Russ
    9)   Tibetan                           28) Tu                                47) Yugur
    10) Buyei                              29) Xibe                              48) Bonan
    11) Dong                               30) Mulao                             49) Monba
    12) Yao                                31) Kirgiz                            50) Orogen
    13) Chosen                             32) Daur                              51) Derung
    14) Bai                                33) Jingpo                            52) Tatar
    15) Hani                               34) Salar                             53) Hezhen
    16) Li                                 35) Blang                             54) Lhoba
    17) Kazak                              36) Maonan                            55) Gaoshan
    18) Dai                                37) Tajik                             56) Other
    19) She                                38) Pumi


26. Do you know what HIV/AIDS is?
                 Yes / No (circle)
27. Do you know how to prevent HIV/AIDS?
                 Yes / No (circle)
28. Do you use condoms?
                 Yes / No (circle)
29. You are:
                 Female / Male (circle one)
30. Age __________years old


31. Highest level of education completed: (circle one)
    a) None
    b) Primary School
    c) Middle School
    d) High School
    e) University or Higher



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                                  Questionnaire for Vehicle Operators

Date: ____________________                       Surveyor: ____________________
Survey Corridor: ____________________
Survey Location_____________ Rural / Urban (circle one)


Inform the respondent of the Project corridor


32. Which road do you most frequently use?
         Origin____________________ Destination____________________
         Distance __________kilometer Travel Time __________minutes / hours (circle)
         Do you use the survey corridor to transport your products to the market place?
                 Yes / No (circle one)


33. During last month, how many times did you use the road identified for Q1?
         __________times (one-way trips)
         (A one-way trip should be counted as one [1] time. Therefore, if you take three [3] round trips [2
         ways] every day for one month [30], it would be 2 x 3 x 30 = 180 times)


34. What type of vehicle do you drive?
    a) car                                                    h) motorcycle
    b) minibus                                                i)   motorized slow-moving vehicle (such
                                                                   as tractor)
    c) bus
                                                              j)   slow-moving manpowered vehicle
    d) light truck
                                                              k) slow-moving livestock-powered vehicle
    e) medium truck
                                                              l)   bicycle
    f)   heavy truck
                                                              m) Other
    g) articulated truck or tractor-trailer


35. If you operate the vehicle for commercial purposes (i.e. non-private use), what do you usually carry?
    (Please only select one answer.)
    a) Passengers
    b) Freight


36. If you usually carry passengers, how many passengers do you carry at once on average?
                 __________persons


37. How much passenger fee do you charge per person?
                 __________CNY per __________kilometers



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38. If you carry passengers, how do you determine the passenger fares you charge?
    a) Based on the negotiations with passengers
    b) Use the non-negotiable fares set by vehicle owner (Cannot be negotiated with passengers.
       “Vehicle owner” includes yourself if you own the vehicle you operate)
    c) Use the fares set by bus owners’ association or other forms of associations, such as drivers’
       associations
    d) Use the fares set by the government or based on the government regulations


39. If you usually carry freight (such as food and non-food items), how much do you transport at once on
    average?
                __________kilograms / tons (circle)


40. What is the freight rate do you charge?
                __________CNY per __________kilograms / tons per __________kilometers


41. If you carry freight, how do you determine the freight rates you charge?
    a) Based on the negotiations with the users of freight shipping services
    b) Use the non-negotiable rates set by vehicle owner (Cannot be negotiated with users of freight
       shipping services. “Vehicle owner” includes yourself if you own the vehicle you operate.)
    c) Use the rates set by shippers’ association or other forms of associations such as drivers’
       associations
    d) Use the rates set by the government or based on the government regulations


42. Do you take any long trips that require overnight stays on the way?
                Yes / No (circle)
                If Yes, do you have sex with somebody during the trip?
                Yes / No (circle)


43. How much do you earn by driving the vehicle?
                __________ CNY per month / year (circle)
44. You are: (circle one)
    a) Owner of the vehicle
    b) Renting the vehicle
    c) Hired by a private company as a driver
    d) Hired by the government as a driver (→Please go to Q17)
    e) Hired by other organizations (such as UN, etc.), including NGOs, as a driver (→Please go to
       Q17)
    f)   Other, explain ______________________________



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45. If you are the owner of the vehicle, how many vehicles do you own? If you are renting the vehicle,
    how many vehicles does your renter own? If you are hired by a private company as a driver, how
    many vehicles does your company own? (Please estimate.)
        __________ vehicles


46. Who usually pays for the vehicle repair?
        Vehicle Owner / Driver (non-owner driver) / Both (circle one)
                Note:   If you are an owner-driver and pay for the repair, please select “Vehicle Owner”.
                        “Driver” here is limited to non-owner drivers.
    a) If you pay for vehicle repair yourself, how much do you pay?
                __________CNY per month / year (circle)
    b) How much of the total repair is caused by bad road conditions? Please estimate.
                __________percent


47. If you are renting the vehicle you drive, what vehicle leasing fee do you pay?
        __________USD per day / month / year (circle)


Road Improvement


48. How would improved roads affect you? (circle all that apply and explain)
    a) Easier movement                                         f)   Increase in income sources
    b) Reduction in transportation cost                        g) Increase in political involvement
    c) Increased trips to market places                        h) Increased trips to social institutions
                                                                  (such as hospitals, clinics, schools,
    d) Increased sales of products in market
                                                                  banks, etc.)
       places
                                                               i)   Other, explain____________________
    e) More job opportunities


Information on the Respondent


49. How many people live in your household?
                ______ Persons


50. If you produce agricultural produce (vegetables, meat, etc.), could you please estimate what
    percentage of the food your household consumes directly comes from your farm/private plot?
    a) = 0%                                                    e) 60% =< 80%
    b) 0% < 20%                                                f)   80% =< 100%
    c) 20% =< 40%                                              g) = 100%
    d) 40% =< 60%


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51. What are the annual cash expenditures of your household? __________ CNY


52. What are the annual cash expenditures of your household for the items listed below?


                                      Item                                       CNY
      a         Food (To purchase food outside your farm)
      b                              School
      c     Farm inputs (fertilizer, pesticides, plastic, tools, etc.)
      d                             Clothes
      e                     Cigarettes and alcohol
      f                            Electricity
      g                      Fuel, wood, and coal
      h                  Hospital and clinic services
       i                           Medicines
       j                     Other grocery items
      k           Construction materials (to fix house, etc.)
       l                        Transportation


53. If you have no idea of the detailed expenditure in your household, would you please make an
    estimate of how much expenditure in your household last year?
    a) < CNY 1,000                                                 e) CNY 4,000 =< 5,000
    b) CNY 1,000 =< 2,000                                          f)    CNY 5,000 =< 6,000
    c) CNY 2,000 =< 3,000                                          g) CNY 6,000 =<
    d) CNY 3,000 =< 4,000


54. What is your religion? (circle one)
    a) Buddhist
    b) Muslim
    c) Christian
    d) Other


55. What is your ethnicity? (circle one)
    a) Han
    b) Other
    If other, select one from the following:




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                                         76) Lisu                              95) Achang
    57) Zhuang
                                         77) Gelao                             96) Nu
    58) Manchu
                                         78) Lahu                              97) Ewenki
    59) Hui
                                         79) Dongxiang                         98) Gin
    60) Miao
                                         80) Va                                99) Jino
    61) Uygur
                                         81) Sui                               100) De’ang
    62) Yi
                                         82) Naxi                              101) Uzbek
    63) Tujia
                                         83) Qiang                             102) Russ
    64) Mongol
                                         84) Tu                                103) Yugur
    65) Tibetan
                                         85) Xibe                              104) Bonan
    66) Buyei
                                         86) Mulao                             105) Monba
    67) Dong
                                         87) Kirgiz                            106) Orogen
    68) Yao
                                         88) Daur                              107) Derung
    69) Chosen
                                         89) Jingpo                            108) Tatar
    70) Bai
                                         90) Salar                             109) Hezhen
    71) Hani
                                         91) Blang                             110) Lhoba
    72) Li
                                         92) Maonan                            111) Gaoshan
    73) Kazak
                                         93) Tajik                             112) Other
    74) Dai
                                         94) Pumi
    75) She


56. Do you know what HIV/AIDS is?
                Yes / No (circle)
57. Do you know how to prevent HIV/AIDS?
                Yes / No (circle)
58. Do you use condoms?
                Yes / No (circle)
59. You are:
                Female / Male (circle one)
60. Age __________years old


61. Highest level of education completed: (circle one)
    a) None
    b) Primary School
    c) Middle School
    d) High School
    e) University or Higher




                        CPCS Transcom – Louis Berger International Consortium
Technical Assistance Consultant’s Report




Project Number: Tar 37125, TA No. 4322-PRC
June 2006




People’s Republic of China:

Poverty Impact of Area Wide Road Networks

Financed by the Poverty Reduction Cooperation Fund


IMPROVED GUIDELINES FOR ROAD NETWORK
FEASIBILITY STUDY:
ROAD SAFETY GUIDELINES
Prepared by
CPCS Transcom - Louis Berger International Consortium
Ottawa, Canada & Washington D.C., United States


For Ministry of Communications, People’s Republic of China

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and
ADB and the Government cannot be held liable for its contents. (For project preparatory technical
assistance: All the views expressed herein may not be incorporated into the proposed project’s design.)
                                                                               Improved Guidelines for Road Network Feasibility Study
                                                                                                    Section E: Road Safety Guidelines

                                                               TABLE OF CONTENTS

                                                                                                                                                                 Page
Introduction and Background..............................................................................................................................1
   Introduction .....................................................................................................................................................1
   PRC.................................................................................................................................................................1
   Main Strategies for Improving Road Safety ....................................................................................................2
   Action Plan ......................................................................................................................................................2
   Role of Road Safety Authorities......................................................................................................................3
   Design Elements .............................................................................................................................................3

Checklist for Stage 1 – Feasibility Study ............................................................................................................5

Checklist for Stage 2 – Preliminary Design ........................................................................................................7

Checklist for Stage 3 – Detailed Design ...........................................................................................................10

Checklist for Stage 4 - Construction (Work Zone)............................................................................................14

Checklist for Stage 5 - Construction (Before Opening) ....................................................................................16

Checklist for Stage 6 - Operation .....................................................................................................................19

Rural Road Safety ............................................................................................................................................23
  Background ...................................................................................................................................................23
  Engineering Measures ..................................................................................................................................23
  Construction and Maintenance Measures ....................................................................................................23
  Operation Measures .....................................................................................................................................24
  Capacity Building ..........................................................................................................................................24
  Funding .........................................................................................................................................................24




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                                                                                 Section E: Road Safety Guidelines

                                                    SECTION E:

                                         ROAD SAFETY GUIDELINES

Introduction and Background

    Introduction

    (i)       Road accidents are a human tragedy that result in health, environmental and social
              problems, and have significant impacts on national economic growth strategies. In
              recognition of this, the United Nations (UN) has recently integrated road safety, for the first
              time, into its policies on sustainable development. The problem of road safety is acute in the
              PRC. During 2000–2005, around 600,000 people were killed and over 3 million injured in
              road accidents, equivalent to 1 fatality every 5 minutes. Economic losses from road traffic
              accidents are 1–3% of the PRC’s gross domestic product (GDP) — higher than the national
              budget for public health services. If the present trend is not arrested in the PRC, the number
              of deaths will rise to over 200,000 per annum by 2010, the number of injuries will double to
              more than a million, and the costs will increase, creating a huge burden on the
              socioeconomic development programs of the Government. Many problems encountered with
              road safety are predominantly institutional in nature — lack of interdepartmental coordination,
              and inadequate strategy.

    PRC

    (ii)      In the PRC, rapid economic growth during the past decade, averaging around 10% per
              annum, has altered road transport demand, which has risen faster than that for other
              transport modes, creating a huge demand for more road space. Given the PRC's rapid
              economic growth, low vehicle ownership rates, lower car prices as tariff barriers fell after
              World Trade Organization (WTO) accession, and increasing access to loans to finance
              automobile purchases, the vehicle fleet is expected to continue to grow rapidly in the coming
              years.
    (iii)     The extent of adverse impacts of road accidents on the economy is characterized as follows:
              • Economic losses from road traffic accidents are 1–3% of the PRC’s gross domestic
                  product (GDP) per annum — higher than the national budget for public health services,
                  and the national budget for rural compulsory education.
              • In the PRC, road accidents disproportionately harm low-income groups (over 60%) such
                  as pedestrians, bicycle and motorcycle riders, and long-distance bus users.1 When
                  household heads are killed or disabled, their family’s poverty worsens.2
              • Road accident costs have a significant adverse impact on the PRC Government’s fight
                  against poverty, and on the scarce medical resources. Road injury patients represent
                  over 25% of hospital bed occupancy.3
    (iv)      Increasing accidents create a burden on the scarce resources of road agencies.
    (v)       Issues and constraints that contribute to road safety problems include the following:
              • Lack of knowledge of basic traffic rules accounts for over 48% of all accidents. Many of
                  these accidents involve freight vehicles and long-distance buses.
              • Limited skills and resources of the driving license examiners.
              • Unavailability of a reliable accident investigation and data system, and in-depth research
                  needed to fully understand causes and create effective countermeasures.


1
  ADB. 1999. Technical Assistance to the People’s Republic of China for Capacity Building in Traffic Safety, Planning, and
Management. Manila.
2
  Ghee, C. 1997. Socioeconomic Aspects of Road Accidents in Developing Countries. TRL Report 247. Crowthorne.
3
  ADB. 2005. Technical Assistance to the People’s Republic of China for Road Safety Improvement. Manila.




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                                                                                      Section E: Road Safety Guidelines

                •   Road safety management practices are characterized by a lack of overall goal-orientation
                    and performance evaluation, fragmented safety interventions, and limited road safety
                    expertise, resources, and interagency coordination between the different agencies that
                    are responsible for different parts of the road network.
       (vi)     To address these constraints, ADB has previously provided an advisory TA1 to help the
                Government in improving road safety. This TA developed a focused, interagency, and
                multidimensional program — the National Road Safety Reform Program (NRSRP) — to
                address various road safety problems. The TA was assessed as highly successful. In 2005,
                ADB has also provided another TA3 to facilitate implementation of the NRSRP.

       Main Strategies for Improving Road Safety

       (vii)    The main strategies for improving road safety should include:
                • Engineering: involves the planning, design, construction, operation and maintenance of
                     the road system, including blackspot and overloaded vehicle issues.
                • Education: involves educating the public on road safety aspects such as wearing seat
                     belts, signaling in advance, riding motorcycle safely and proper use of pedestrian
                     facilities.
                • Enforcement: involves enforcing traffic management, and instituting legal actions against
                     road users who violated road traffic rules. Also involve traffic police in the deign,
                     operation, and maintenance of roads, and in the identification of the black spots, and
                     overloaded vehicle control.
                • Emergency: to provide timely service for road accident victims.
                • Encouragement: involves getting the general public to participate positively – for
                     example, school teachers and parents should teach young children to promote road
                     safely.
                • Evaluation: involves the monitoring of the road traffic situation, monitoring progress and
                     making any necessary adjustments as conditions change over time.
       (viii)   The three general types of engineering changes that can be made to improve road safety
                include the followings (FHWA, 1986):
                • Roadway improvements: help drivers to stay on the roadway and in their own lanes and
                     consist of improvements made to the geometric features of the roadway such as lane and
                     shoulder width, horizontal and vertical alignment, and pavement cross slope. Roadway
                     improvements can reduce the number of accidents occurring by providing consistent and
                     uniform conditions (including road surface skid resistance) and improving driving comfort.
                • Operational improvements: provide the drivers with necessary and important
                     information and consist of improvements generally made to the signs, pavement
                     markings, traffic signals, delineation, and other features. Operational improvements are
                     often used to supplement or mitigate the effects of substandard or unexpected roadway
                     features by providing the driver with information on potential hazards ahead or
                     establishing rules (speed limit, etc.) under which the section of the road can be
                     negotiated safely. Operational improvements can also include features such as speed
                     humps that aim to ensure that vehicle speeds are maintained at a level consistent with
                     safe operation.
                • Roadside improvements: Provide the driver with a better chance of recovering from an
                     accident and/or reduce the potential severity of accidents along the edge of the roadway.
                     These improvements include such work as covering drains, removing poles, and
                     installing safety devices.

       Action Plan

       (ix)     Road safety is interdisciplinary field and involves various sectors and agencies.4 A focused,
                comprehensive, and multi-dimensional road safety program therefore is needed to address

4
    ADB Website. 2006. Road Safety and Transport Sustainability. Manilla –   www.adb.org/Projects/PRCRoadSafety/default.asp



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            the problems. The program should involve both public sector and private enterprises working
            together towards a common goal, with the full support of civil society. In order to ensure the
            road safety program is effective and sustainable, strong support from political leaders will be
            essential.
   (x)      To ensure the program is effective on a day-to-day basis, all involved agencies will be
            required to practice the 3 'Cs' of:
            • Cooperation (in developing joint road safety priorities and inter-agency working
                arrangements, etc.);
            • Coordination (in sharing information on traffic accidents, accident blackspots and road
                safety issues, etc.); and
            • Collaboration (in developing solutions and plans to address specific road safety issues
                and requirements, and in monitoring effectiveness following implementation).
   (xi)     The key components which are considered priority need in order to provide integrated road
            safety program and successful action plan are:
            • Establishment of national, provincial and municipal road safety councils, to provide
                guidance, develop strategy, allocate budget, optimize the use of resources, enhance
                interagency coordination, and monitor effectiveness.
            • Develop improved traffic and road safety legislation, and monitor effectiveness of current
                law and rules.
            • Develop an efficient accident data system, and promote information sharing, and
                research to understand causes and size of the problem,
            • Introduce more safety-conscious road planning and design, road rehabilitation and traffic
                management schemes.
            • Develop more effective traffic enforcement system, and promote targeted enforcement.
            • Education and publicity, to promote leaders, decision-makers and community support.
            • Improved driver training and testing system.
            • Improved vehicle testing and inspection system.
            • Integrated emergency services system.
            • Donors’ support, and sustainable road safety budget.

   Role of Road Safety Authorities

   (xii)    The key road safety authorities are the communication departments, and traffic police
            bureaus. Road authorities are responsible for planning, designing, constructing and
            maintaining the road network. They deal with the road safety aspects, which relate to road
            characteristics, various design elements, traffic control devices, related facilities and
            surrounding landscape, do have strong influences on driver behaviors. They also deal with
            emergency services, maintenance, and black spot treatments. Traffic police is in charge of
            various enforcement and traffic management aspects. Other authorities include the health,
            education, and emergency service departments.

   Design Elements

   (xiii)   Well designed roads consider the needs and expectations of road users, which reduce the
            occurrence of drive errors, and emphasize the concept of forgiveness and tolerance to
            reduce the likelihood and severity of death and injury even when accidents do happen.
            Design elements having possible safety impacts mainly include: general design criteria,
            horizontal and vertical alignments, cross-sections, pavement, intersections and signals,
            interchanges, bridges, tunnels, climbing lanes, emergency escape ramps, rest areas, toll
            stations, pedestrian, bicycle and motorcycle facilities, access control, signing, pavement
            markings, lighting, median/roadside safety, construction staging and temporary traffic control
            plans.




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   (xiv)   Suggestions for changes to the standard “road traffic signs and markings” (GB 5768-1999)
           include:
           • Set up consistent color scheme;
                o a) Avoid using one color for two types of signs, for example, blue is used for both
                    guideline signs for non-expressway roads (green can be used) and direction signs
                    (function as regulatory signs and white can be used);
                o b) New color is needed for work zone signs.
           • Add appropriate alignment warning signs for expressways to give drivers some warning
                and guidance;
           • Add advisory speed limit sign for ramps, entrances and exits;
           • Remove bridge name signs (or put a small sign on the side of the bridge structure for
                maintenance crew), which give no guidance or warning information to drivers.




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Checklist for Stage 1 – Feasibility Study

Information Required for the Assessment

           Maps of the region

           Maps/plans of road network (before and after the project) and land use (existing and projected)

           Planning reports, associated plans, typical cross-sections

           Major alternatives and associated plans

           Existing and projected traffic volumes (by vehicle types) and traffic flow directions (including
            project road and other roads intersecting the project road)

           Requirement of existing area-wide traffic management strategies

           Requirement of the stakeholders and the general public for certain local traffic management
            strategies

Assessment Items

          Road Environment & Network Effects

                      Topology and terrain classification: level, rolling or mountainous terrain

                      Geology: existence of geological problems and appropriate countermeasures

                      Land use: land use pattern and existence of major traffic generators or attractors
                      (existing and planned)

                      Weather condition: prevalence of high wind or fog, precipitation and flood level

                      Road function: function requirements of automobile drivers, motorcyclists, bicyclists,
                      pedestrians and the general public, necessity of wider shoulder, separate lanes, or
                      pedestrian sidewalks or crosswalks, existence of migrating animals and necessity of
                      animal passes

                      Road network structure: road function in the network, appropriateness of functional
                      classification, need of service roads, existing of alternative routes (for temporary
                      traffic control plans during construction stage or emergency use during operation
                      stage)

                      General traffic management strategies: existing area-wide traffic management
                      strategies, requirement of the stakeholders and the general public for certain local
                      traffic management strategies, temporary traffic control strategies

          General Geometric Standards

                      Road technical classification: expressways or Class 1, 2, 3 or 4 highways, factors
                     considered include forecasted traffic volume by vehicle types, truck percentage, etc.

                      Design speed: existence of sections having different technical classification or
                     design speed, transition area design, possibility of design for higher speed, etc.




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                      Cross-section: number of lanes, lane widths, shoulder widths and planned shoulder
                    pavement types, median types and widths, side slopes, existence of planned curbs
                    and curb types, planned barrier types, existence of bridge piers, other roadside
                    obstacles or hazards, existence of sections having different cross-sections and
                    transition area design

                      Stage development: logic check and consistency of different stages

          Alternative Comparison

                      Horizontal and vertical alignments: consistency with design speed, considering
                      special needs for high truck-percentage road, existence of long steep grades and
                      necessity of emergency escape ramps and climbing lanes

                      Terminal problems: design consistency of transition area connecting project road to
                      urban streets or existing roads

                      Intersections, interchanges, overpasses and underpasses: locations and intervals of
                      intersections and interchanges, need for service roads, vehicle overpasses and
                      underpasses, pedestrian overpasses and underpasses

          Major Structures and Facilities

                      Bridge and tunnels: existence of long bridges or tunnels, possible locations and
                      existence of substandard or unsafe features

                      Rest areas, scenic outlooks and toll plazas: intervals of rest areas, existence of
                      scenic vistas that may distract drivers and necessity of scenic outlooks, location of
                      toll plaza (avoidance of steep grade or sharp horizontal curves, enough distances to
                      ramps, intersections or interchanges)




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Checklist for Stage 2 – Preliminary Design

Information Required for the Assessment

           Memorandum or other documents showing details and decisions of stage 1 audit

           Official approval and reply document on the feasibility study by related government agencies

           Reports showing existing and projected traffic volumes (by vehicle types) and traffic flow
            directions (including design volumes for all movements at intersections and interchanges)

           Preliminary plans showing horizontal and vertical alignments, cross sections, etc.

Assessment Items

          Design Criteria

                      Appropriateness of design criteria to the road functional classification, terrain type,
                      the nature of the topography, technical classification, and the traffic condition

          Cross-Sections

                      Number of lanes and adequacy of median widths, lane widths, and shoulder widths
                      (adequacy of shoulder widths and necessity of separate lanes for bicyclists and/or
                      motorcyclists)

                      Roadside clearances: existence of curbs and curb types, design of side slopes and
                      drainage features, possible median/roadside obstacles or hazards

                      Consistency of the cross-sections along the route: existence of segments having
                      different cross-sections and transition area design, transition area sight distance
                      adequacy

          Horizontal and Vertical Alignments

                      Horizontal alignments: design speed consistency and gradual change of horizontal
                      curve radii, existence of sharp curves (substandard, close to the extreme values
                      recommended by the technical standards, or unsafe for the situation), adequacy of
                      super-elevation, avoidance of long straight lines (before sharp curves)

                      Vertical alignments: consistency and coordination with horizontal alignments,
                      existence of steep grades (substandard, close to the extreme values recommended
                      by the technical standards, or unsafe for the situation), necessity and possible
                      locations of emergency escape ramps and climbing lanes

                      Horizontal and vertical alignment combinations: existence of unsatisfactory
                      combinations

                      Sight distances: requirements of stopping sight distances, overtaking sight distances
                      and passing sight distances

          Pedestrian, Bicycle and Motorcycle Facilities

                      Pedestrian footpaths or sidewalks, crosswalks, overpasses or underpasses,
                      necessity of providing wider shoulders and/or paved shoulders, separate



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                     bicycle/motorcycle lanes, fencing if pedestrian prohibited, fencing on pedestrian
                     overpasses or vehicle overpasses

          Intersections

                     Intersection types: appropriateness of intersection types

                     Intersection layouts: types of traffic control, lane configuration and channelization,
                     adequacy and level of service for all movements at intersections, adequacy for
                     heavy vehicle turning movements, existence of steep grades for all approaching
                     directions

                     Pedestrian facilities: pedestrian crosswalks, overpasses or underpasses, pedestrian
                     signals

                     Sight distances and sight lines: sight distances requirements for intersections of
                     different traffic control types, no obstructions of sight lines

                     Visibility and lighting: visibility at intersections, necessity of lighting provision

          Interchanges

                     Interchange types: appropriateness of interchange types

                     Interchange layouts: existence and types of traffic control, interchange lane
                     configuration, logic check and adequacy for all movements at interchange, entering
                     and exiting ramp design, acceleration and deceleration lane design, adequacy for
                     heavy vehicle turning movements on ramps, existence of steep grades for all ramps

                     Sight distances: sight distances requirements for interchange (with different traffic
                     control types)

                     Visibility and lighting: visibility at interchanges, necessity of lighting provision

                     Special signing needs: identification of special signing needs and recommended
                     signing design

          Bridges

                     Geometric alignments connecting bridges and road pavements

          Tunnels

                     Geometric alignments at the tunnel entrances and exits, overtaking sight distance or
                     passing sight distance requirements and provision of no passing or no overtaking
                     zones, existence of emergency stopping lanes or vehicle and pedestrian evacuation
                     passages

          Access Control and Land Use

                     Existing or planned major land use developments which are or will become major
                     traffic generators and attractors: existence of direct accesses or the convenience of
                     indirect accesses, traffic impacts

                     Access control: intervals of driveways, vicinity of driveways to intersections and
                     interchanges


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                    Entering and exiting driveways: locations, layouts and types of traffic control

          Stages Development

                    Logic check and consistency of different stages, stage development refinement:
                    avoidance of unexpected changes in geometric standards, traffic routing plans for
                    each stage

                    Temporary terminals: arrangements and sittings, avoiding locations of restricted
                    sight distances or alignment standards, busy intersections and interchange ramps

                    Possible location of congestions or other traffic abnormalities that may lead to safety
                    problems




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Checklist for Stage 3 – Detailed Design

Information Required for the Assessment

           Memorandum or other documents showing details and decisions of earlier stage audits

           Official approval and reply document on the preliminary design by related government agencies

           Reports showing existing and projected traffic volumes (by vehicle types) and traffic flow
            directions (including design volumes for all movements at intersections and interchanges)

           Detailed plans showing horizontal and vertical alignments, cross sections, drainage, bridges,
            tunnels, signing and pavement markings, intersections and traffic signals, interchanges,
            landscaping, etc.

Assessment Items

       Cross-Sections

                     Recheck
                 (Refer to the stage 2 checklist for details of the rechecked items, same hereinafter)
                     −     Number of lanes and adequacy of median widths, lane widths, and shoulder
                           widths
                     −     Consistency of the cross-sections along the route

       Horizontal and Vertical Alignments

                      Recheck
                      −   Horizontal alignments
                      −   Vertical alignments
                      −   Horizontal and vertical alignment combinations
                      − Sight distances
                      Existence of sight line obstructions: by batter heights, trees, etc.

                      Design details of emergency escape ramps and climbing lanes if warranted

                      Terminal transition area consistency with existing roads

       Pavement Type and Drainage

                      Pavement types: adequacy of friction

                      Drainage: adequacy for precipitation level

                      Pavement transitions: smooth transition of bridge extension joints, smooth transition
                      between road pavements and bridge/tunnel pavements

       Pedestrian, Bicycle and Motorcycle Facilities

                      Recheck adequacy and convenience of pedestrian, bicycle and motorcycle facilities

                      Design details of pedestrian, bicycle and motorcycle facilities




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       Intersections and Interchanges

                   Recheck
                   −   Intersection and interchange types
                   −   Intersection and interchange layouts
                   −   Sight distances, sight lines, visibility and lighting
                   −   Pedestrian and bicycle facilities
                   −   Special signing needs and sign details

       Traffic Signals

                   Signal warrants: vehicle and pedestrian volumes, peak hour, school crossing,
                   coordinated signal system, accident experience, roadway network

                   Signal phasing and timing: logic check of signal phasing for possible conflicts,
                   adequacy and balance for all vehicle and pedestrian movements, adequacy of
                   intergreen time for the intersection to clear

                   Pedestrian facilities: pedestrian crosswalks, refuge islands, pedestrian signals,
                   phasing and timing

                   Signal head sizes, brightness and visibility: signal head types, visibility of at least two
                   signal heads for each movement, invisibility of signal heads for other movements to
                   avoid confusions

                   Locations of signal posts and other equipments: free from possible vehicle impacts

       Signing

                   Guide signs: succinct and clear, character sizes, character spaces, line spacing,
                   information amount, provision of overhead signs on complex multilane configuration

                   Regulatory signs: necessity to main normal traffic movements and avoid wrong
                   movements

                   Warning signs: notifying drivers of abnormal or dangerous situations

                   Sign placement: signs should be placed at some intervals, no obstruction to sight
                   lines at intersections, enough advance warnings (decision sight distance
                   requirements) and information iterations for drivers to take actions

                   Retroreflection, illumination and visibility: necessity for flashing warning beacons

                   Unnecessary or conflicting signs: removal

       Pavement Markings and Delineators

                   Line patterns and widths of longitudinal markings: double line, solid lines, broken
                   lines, and dotted lines

                   Placement of longitudinal markings: providing guidance, regulations and warnings

                   Warrants: for yellow centerlines, no-passing zones, white lane lines, no-overtaking
                   zones




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                     Chevron approach markings and channelizing lines at the approach end of traffic
                     islands and the ramp gore areas of expressways or interchanges

                     Positioning of transverse markings: stop lines, yield lines, crosswalk lines, word and
                     symbol markings

                     Raised pavement markers and delineators

                     Retroreflection and visibility

       Lighting

                     Lighting consistency and transition

                     Location of lighting poles: outside of roadside clear zone, free from possible vehicle
                     impacts, and no obstruction to drivers’ sight lines

       Lighting

                     Bridge rails: types, heights, crashworthy levels, and transition with median/roadside
                     barriers

       Tunnels

                     Recheck: geometric alignments at the tunnel entrances and exits, overtaking sight
                     distance or passing sight distance requirements and provision of no passing or no
                     overtaking zones, design details of emergency stopping lanes, design details of
                     vehicle and pedestrian evacuation passages

                     Traffic control and monitoring devices: ventilation, lighting, monitoring and firefighting
                     devices, signals, signs, etc.

       Rest Areas

                     Locations and intervals of rest areas

                     Layouts and facilities: logic check, necessary facility provisions, parking space
                     adequacy, etc.

                     Entering and exiting driveways: length adequacy for vehicle acceleration and
                     deceleration movements

                     Signing and pavement markings: providing information and guidance of rest areas
                     and related facilities, necessary signs to prevent wrong movements, markings for
                     entering and exiting driveways, markings for parking spaces and other facilities

       Toll Plazas

                     Layouts: logic check, number of toll gates, transition area design

                     Speed reduction devices: speed reduction pavement markings, speed humps, etc.

                     Signing and other pavement markings: providing information and guidance of toll
                     plazas and lane increasing, regulation and warning of speed reduction, necessity for
                     providing solid white lines close to the toll gates to prohibit lane changing, prevention
                     of rear-end collisions at toll gates


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       Median/Roadside Safety

                  Clear zone: clear zone width identification for different side slopes

                  Existence of median/roadside obstacles or hazards within clear zone: curbs, ditches,
                  culvert ends, inlets, bridge piers, sign posts, lighting and other utility poles, trees,
                  deep water, etc.

                  Treatments: using ditch covers, relocation or removal, breakaway devices,
                  traversable design, shield (with barriers)

                  Median/roadside barriers: types, heights, crashworthy levels, lengths and placement,
                  design details, end treatments of guardrails, transition to bridge rails or tunnel walls

                  Median division or gore areas: end treatments of guardrails, necessity of placing
                  water or sand barrels, crash cushions

       Construction Staging and Temporary Traffic Control Plans

                  Logic recheck and stage development refinement

                  Temporary traffic control plans:
                  −  Temporary traffic routing plan refinement
                  −  Temporary traffic signal design
                  −  Temporary signing and pavement markings: design details and placement of
                     temporary signs, placement of temporary pavement markings for each stage,
                     removal of existing unnecessary or conflicting signs and pavement markings




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Checklist for Stage 4 - Construction (Work Zone)


If the project is road expansion and upgrade project that is partly work zone and partly open to traffic,
aspects of work zone safety need to be checked.


Information Required for the Assessment

           Memorandum or other documents showing details and decisions of earlier stage audits

           Official approval and reply document on the detailed design by related government agencies

           Approved construction staging and temporary traffic control plans

           Other approved detailed design plans and design revisions during constructions

           Test drives on cars and trucks during each stage in daytime and nighttime and necessary field
            inspection equipments

Assessment Items

        Work Zone Layouts

                      Layouts of advance warning area, buffer area, working area and termination area

        Temporary Traffic Signals

                      Intersection layouts: types of traffic control, lane configuration, adequacy for heavy
                      vehicle turning movements

                      Signal phasing and timing (if signals can be operated): logic check of signal phasing
                      for possible conflicts, adequacy and balance for all vehicle and pedestrian
                      movements, adequacy of intergreen time for the intersection to clear

                      Signal head sizes, brightness and visibility (if signals can be operated): visibility of at
                      least two signal heads for each movement, invisibility of signal heads for other
                      movements to avoid confusions

                      Sight distances and sight lines: sight distances requirements for intersections of
                      different traffic control types, no obstructions of sight lines

                      Signing at intersections: signing conflicts, placement of lane configuration signs and
                      turning prohibition signs, etc.

                      Pavement markings: stop lines, crosswalks, lane movements markings

        Signing

                      Placement of work zone related signs: road work, detour, road closure, lane closure,
                      work zone speed limit signs

                      Necessity of portable changeable message signs

                      Existence of unnecessary or conflicting signs



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       Pavement Markings

                  Placement of temporary pavement markings: consistency with construction staging
                  and temporary traffic control plans

                  Removal of conflicting or unnecessary markings of previous construction stages

       Channelizing Devices

                  Placement of tubular markers, vertical panels, barricades, cones, drums, barrels,
                  movable concrete barriers

       Crash Cushions

                  Placement of stationary crash cushions and truck-mounted attenuators

       Retroreflection and Lighting

                  Retrorefection of signs, pavement markings,            and    channelizing   devices,
                  retroreflective apparels for road worker, etc.

                  Lighting: lighting at intersections, interchanges and other segments, lighting devices
                  such as floodlights, flashing warning beacons, warning lights, etc.




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Checklist for Stage 5 - Construction (Before Opening)


Assessment for this stage should best be carried out before the project final check and acceptance if
possible.

Information Required for the Assessment

           Memorandum or other documents showing details and decisions of earlier stage audits

           Official approval and reply document on the detailed design by related government agencies

           Construction completion plans if available; if not, approved detailed design plans and design
            revisions during construction

           Test drive on cars and trucks in daytime and nighttime and necessary field inspection
            equipments

Assessment Items

       General Alignments

                      Horizontal and vertical alignments: existence of unsatisfactory combinations

                      Sight distances: requirements of stopping sight distances, overtaking sight distances
                      and passing sight distances

       Pavement

                      Adequacy of pavement friction

                      Pavement transition: smooth transition of bridge extension joints, smooth transition
                      between road pavements and bridge/tunnel pavements

       Intersections and Signals

                      Intersection layouts: types of traffic control, lane configuration, traffic or pedestrian
                      islands, adequacy for heavy vehicle turning movements

                      Signal phasing and timing (if signals can be operated): logic check of signal phasing
                      for possible conflicts, adequacy and balance for all vehicle and pedestrian
                      movements, adequacy of intergreen time for the intersection to clear

                      Signal head sizes, brightness and visibility (if signals can be operated): visibility of at
                      least two signal heads for each movement, invisibility of signal heads for other
                      movements to avoid confusions


                      Sight distances and sight lines: sight distances requirements for intersections of
                      different traffic control types, no obstructions of sight lines

                      Signing at intersections: signing conflicts, placement of lane configuration signs and
                      turning prohibition signs, etc.

                      Pavement markings: stop lines, crosswalks, lane movements markings



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       Interchanges

                    Interchange layouts: logic check for each movement, entering and exiting ramp
                    layouts, length of acceleration and deceleration lanes, adequacy for heavy vehicle
                    turning movements on ramps

                    Sight distances and sight lines: sight distances requirements with different traffic
                    control types, no obstructions of sight lines

                    Signing: signing conflicts, design details and placement of special guide signs

                    Pavement markings: gore area pavement markings

       Bridges

                    Bridge rails: adequacy of rail types, heights and crashworthy levels, transition with
                    median/roadside barriers

       Tunnels

                    Overtaking sight distance or passing sight distance requirements and provision of no
                    passing or no overtaking zones, design details of emergency stopping lanes, design
                    details of vehicle and pedestrian evacuation passages

                    Traffic control and monitoring devices: ventilation, lighting, monitoring and firefighting
                    devices, signals, signs, etc.

       Rest Areas

                    General layouts: logic check

                    Entering and exiting driveways: length adequacy for vehicle acceleration and
                    deceleration movements

                    Signing and pavement markings: providing information and guidance of rest areas
                    and related facilities, necessary signs to prevent wrong movements, markings for
                    entering and exiting driveways, markings for parking spaces and other facilities

       Toll Stations

                    General layouts: logic check, smooth transition areas

                    Speed reduction devices: speed reduction pavement markings, speed humps, etc.

                    Signing and other pavement markings: signing conflicts, providing information and
                    guidance of toll plazas and lane increasing, regulation and warning of speed
                    reduction, necessity for providing solid white lines close to the toll gates to prohibit
                    lane changing, prevention of rear-end collisions at toll gates

       Climbing Lanes

                    General layouts, transition areas, adequate signing and appropriate pavement
                    markings




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       Emergency Escape Ramps

                   General layouts: horizontal and vertical alignments, approach lanes, lane lengths
                   and widths, crash cushions or other end treatments of emergency escape ramps,
                   pavement materials

                   Signing and pavement markings: adequate signing and appropriate pavement
                   markings

       Signing

                   Overall layout: logic check, existence of conflicting and unnecessary signs

                   Design and placement: legibility, information amount, sign intervals, existence of
                   obstruction by other objects or obstruction to essential sight lines, enough advance
                   warning (decision sight distance requirements) and information iteration for drivers to
                   take actions

       Pavement Markings and Delineators

                   Overall layout: logic check

                   Types and placement: yellow centerlines for no-passing zones, solid white lane lines
                   for no-overtaking zones, chevron approach markings and channelizing lines at the
                   approach end of traffic island and ramp gore areas of expressways or interchanges,
                   stop lines, yield lines, crosswalk lines, word and symbol markings, etc.

                   Raised pavement markers and delineators

       Median/Roadside Safety

                   Clear zone: clear zone width identification for different side slopes

                   Existence of median/roadside obstacles or hazards within clear zone: ditches,
                   culvert ends, inlets, bridge piers, sign posts, lighting and other utility poles, trees,
                   deep water, etc.

                   Treatments: using ditch covers, relocation or removal, breakaway devices,
                   traversable design, shield (with barriers)

                   Median/roadside barriers: adequacy of barrier types, heights and crashworthy levels,
                   lengths and placement, end treatments of guardrails, transition to bridge rails or
                   tunnel walls

                   Median division or gore areas: end treatments of guardrails, necessity of placing
                   water or sand barrels, crash cushions

       Night Retroreflection, Visibility, Illumination and Lighting

                   Signing, pavement markings and delineators: illumination for overhead signs,
                   retroreflection of signs, markings and delineators

                   Anti-glare Devices: adequacy check, special attention to vegetation heights and
                   density when vegetations are used for anti-glare (inadequate anti-glare effects when
                   too low or too sparse; possible obstruction to sight lines when too high or too dense)
                   Lighting: lighting at intersections, interchanges and other segments


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Checklist for Stage 6 - Operation

Information Required for the Assessment

           Memorandum or other documents showing details and decisions of earlier stage audits

           Road accidents data (Depending on data availability, project scope and budget, decide the
            necessity of road accident data collection, analysis and black-spot identification. The black-
            spot segments can be used as the key assessment segments.)

           Construction completion final check and acceptance report

           Approved construction completion plans

           Test drive on cars and trucks in daytime and nighttime and necessary field inspection
            equipments

Assessment Items

       General Alignments

                      Horizontal and vertical alignments: design consistency, existence of unsatisfactory
                      combinations

                      Sight distances: requirements of stopping sight distances, overtaking sight distances
                      and passing sight distances

                      Cross-sections: smooth transition areas

       Pavement Conditions

                      Pavement transition: smooth transition of bridge extension joints, smooth transition
                      between road pavements and bridge/tunnel pavements

                      Adequacy of pavement friction

                      Existence of pavement defects

                      Pavement drainage: drainage adequacy, existence of water accumulation segments

       Intersections and Signals

                      Intersection layouts: types of traffic control, lane configuration, traffic or pedestrian
                      islands, adequacy for heavy vehicle turning movements

                      Signal phasing and timing: logic check of signal phasing for possible conflicts,
                      adequacy and balance for all vehicle and pedestrian movements, adequacy of
                      intergreen time for the intersection to clear, existence of abnormal congestions at the
                      intersections

                      Signal head sizes, brightness and visibility: visibility of at least two signal heads for
                      each movement, invisibility of signal heads for other movements to avoid confusions

                      Sight distances and sight lines: sight distances requirements for intersections of
                      different traffic control types, no obstructions of sight lines



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                    Signing at intersections: signing conflicts, placement of lane configuration signs and
                    turning prohibition signs, etc.

                    Pavement markings: stop lines, crosswalks, lane movement markings, etc.

       Interchanges

                    Interchange layouts: logic check for each movement, entering and exiting ramp
                    layouts, length of acceleration and deceleration lanes, adequacy for heavy vehicle
                    turning movements on ramps

                    Sight distances and sight lines: sight distances requirements with different traffic
                    control types, no obstructions of sight lines

                    Signing: signing conflicts, design details and placement of special guide signs

                    Pavement markings: gore area pavement markings

       Bridges

                    Bridge rails: adequacy of rail types, heights and crashworthy levels, transition with
                    median/roadside barriers

       Tunnels

                    Overtaking sight distance or passing sight distance requirements and provision of no
                    passing or no overtaking zones, design details of emergency stopping lanes or
                    vehicle and pedestrian evacuation passages

                    Traffic control and monitoring devices: ventilation, lighting, monitoring and firefighting
                    devices, signals, signs, etc.

                    Tunnel pavements: vehicle emission sediment condition, adequacy of friction,
                    transition between tunnel pavement and road pavement if different materials are
                    used

       Rest Areas

                    General layouts: logic check

                    Entering and exiting driveways: length adequacy for vehicle acceleration and
                    deceleration movements

                    Signing and pavement markings: providing information and guidance of rest areas
                    and related facilities, necessary signs to prevent wrong movements, markings for
                    entering and exiting driveways, markings for parking spaces and other facilities

       Toll Stations

                    General layouts: logic check, smooth transition areas

                    Speed reduction devices: speed reduction pavement markings, speed humps, etc.

                    Signing and other pavement markings: signing conflicts, providing information and
                    guidance of toll plazas and lane increasing, regulation and warning of speed


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                 reduction, necessity for providing solid white lines close to the toll gates to prohibit
                 lane changing, prevention of rear-end collisions at toll gates

       Climbing Lanes

                 General layouts, transition areas, adequate signing and appropriate pavement
                 markings

       Emergency Escape Ramps

                 General layouts: horizontal and vertical alignments, approach lanes, lane lengths
                 and widths, crash cushions or other end treatments of emergency escape ramps,
                 pavement materials

                 Signing and pavement markings: adequate signing and appropriate pavement
                 markings

                 Emergency services: timely emergency services to avoid too many out-of-control
                 vehicles entering the facilities to create secondary accidents

       Signing

                 Overall layout: logic check, existence of conflicting and unnecessary signs

                 Design and placement: legibility, information amount, sign intervals, existence of
                 obstruction by other objects or obstruction to essential sight lines, enough advance
                 warning (decision sight distance requirements) and information iteration for drivers to
                 take actions

                 Sign conditions: existence of damaged signs, need of replacement or repair

       Pavement Markings

                 Overall layout: logic check

                 Types and placement: yellow centerlines for no-passing zones, solid white lane lines
                 for no-overtaking zones, chevron approach markings and channelizing lines at the
                 approach end of traffic island and ramp gore areas of expressways or interchanges,
                 stop lines, yield lines, crosswalk lines, word and symbol markings, etc.

                 Pavement marking conditions: existence of worn-out pavement markings, need of
                 replacement

                 Raised pavement markers and delineators

       Median/Roadside Safety

                 Clear zone: clear zone width identification for different side slopes

                 Existence of median/roadside obstacles or hazards within clear zone: ditches,
                 culvert ends, inlets, bridge piers, sign posts, lighting and other utility poles, trees,
                 deep water, etc.

                 Treatments: using ditch covers, relocation or removal, breakaway devices,
                 traversable design, shield (with barriers)



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                   Median/roadside barriers: adequacy of barrier types, heights and crashworthy levels,
                   lengths and placement, end treatments of guardrails, transition to bridge rails or
                   tunnel walls

                   Barrier conditions: existence of damaged barriers, need of replacement or repair

                   Median division or gore areas: end treatments of guardrails, necessity of placing
                   water or sand barrels, crash cushions

       Night Retroreflection, Visibility, Illumination and Lighting

                   Signing, pavement markings and delineators: illumination for overhead signs,
                   retroreflection of signs, markings and delineators, need of sign retroreflection sheet
                   replacement, need of marking or delineator replacement

                   Anti-glare Devices: adequacy check, special attention to vegetation heights and
                   density when vegetations are used for anti-glare (inadequate anti-glare effects when
                   too low or too sparse; possible obstruction to sight lines when too high or too dense)

                   Lighting: lighting at intersections, interchanges and other segments, existence of
                   malfunctioning lighting devices, need of replacement and repair




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                                                                         Section E: Road Safety Guidelines

Rural Road Safety

   Background

   (xv)      In general, the traffic on most rural roads consists mainly of bicycles, some two-wheelers,
             some animal-drawn vehicles and agricultural tractors and vehicles. The construction of new
             rural road links to hitherto unconnected habitations and upgrading of existing links will
             generate a considerable amount of motorized traffic on rural roads.
   (xvi)     The sudden influx of high speed motorized vehicles to the rural roads can severely endanger
             the safety of road users, particularly of vulnerable road users like children (going to the
             schools), women carrying headloads of agricultural produce, cyclists, etc. It is thus expected
             that as the rural roads get constructed and upgraded, road safety will be an issue requiring
             serious consideration. When accidents do take place, trauma care and other facilities
             available in hospitals of towns and cities are not within the easy reach of the accident victims.
             Under these circumstances, preventive measures, at engineering, enforcement and
             education levels, must be taken up to the extent feasible.

   Engineering Measures

   (xvii)    Incorporating appropriate safety design standards and features in the rural roads can
             enhance road safety to a great extent. In view of the lower levels of education in the rural
             areas, the engineering of roads to constrain users to follow safe driving and behavioural
             standards is also necessary. Some of the engineering measures that should be built into the
             design of rural roads are enumerated below:
             • The vertical profile of the road should be designed such that the required minimum
                 stopping sight distance is available.
             • In hill roads, blind curves are a safety hazard. Suitable vision beams may be cut at such
                 locations.
             • The horizontal curves should be designed scientifically, conforming to the selected
                 design speed and terrain. The pavement should be widened at curves.
             • Passing places must be provided at convenient locations particularly on hill roads.
             • Bus-bays and freight truck facilities should be provided at proper locations to avoid
                 hamper with the normal traffic.
             • Where the roads pass through habitations and schools, it is necessary that the motorized
                 vehicles travel at low speeds. This can be ensured by providing adequately designed
                 road humps or rumble strips, or warning sign.
             • The junction of rural road with a main road is always a point of conflict and an accident-
                 prone zone, and must be designed scientifically.
             • Ramps must be provided where field paths and animal crossings intersect the road.
             • Traffic signages, incorporating warning and regulatory signs, can enhance road safety
                 and efficiency.
             • Hazard markers like reflectorised delineators must be provided at dangerous locations.
             • Incorporate appropriate safety design standards and features in the rural roads to
                 enhance road safety to a great extent.
             • Developing a functional classification of rural roads as a base for establishing a road
                 condition system and assigning priorities and costs.

   Construction and Maintenance Measures

   (xviii)   Safety in construction zones must be enhanced by:
             • Advance warning of road users clearly and sufficiently, and provide clear guidance.
             • Providing safe and clearly marked buffer zones and work zones, e.g. drums, signs and
                 flagmen.
             • Use construction machinery carefully.
             • Minimize obstruction to road users.


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           •   Providing temporary diversions as necessary.
           •   Avoid conflict of parking machine and traffic.

   Operation Measures

   (xix)   To ensure operational safety the executing agency should ensure that
           • Develop a simple maintenance management system, and conduct road condition survey
               and traffic counts.
           • Determine bill of qualities and prepare cost estimates.
           • Prepare annual maintenance strategy and define priorities.
           • Routine maintenances of rural roads are regularly carried out, and all road safety issues
               are properly addressed.
           • Promote preventive maintenance and safety measures.
           • Strengthen contract administration and quality assurance procedures.
           • Establish monitoring and evaluation system to assess program effectiveness.
           • Organize road safety and maintenance awareness campaigns involving relevant
               agencies and community groups, to create sustainable rural road operations.
           • Develop equipment maintenance and utilization regime.

   Capacity Building

           •   Establish an ongoing training program to enhance staff skills.
           •   Provide training through the overseas training program of the foreign financed Project, to
               strengthen staff capacity and adopt best-practice.
           •   Provide short-term international consultants to enhance local capacity.
           •   Utilize the team leader / international consultant to develop a sustainable maintenance
               system, including budget plan, staff development program, and monitoring system to
               efficiently manage assets and provide steady operation of the expressway and local
               roads, following project completion.

   Funding

           •   Ensure an ongoing maintenance budget will be provided to maintain steady operation of
               the networks after project opening.
           •   Ensure sufficient and continuous funds for road maintenance.
           •   Ensure proper implementation of the Government’s subsidy program.
           •   Adopt efficient rules for access to and use of the maintenance and safety funds, and
               identify innovative ways of mobilizing funds.
           •   Effective monitoring and auditing.




                       CPCS Transcom – Louis Berger International Consortium
Technical Assistance Consultant’s Report




Project Number: Tar 37125, TA No. 4322-PRC
June 2006




People’s Republic of China:

Poverty Impact of Area Wide Road Networks

Financed by the Poverty Reduction Cooperation Fund
IMPROVED GUIDELINES FOR ROAD NETWORK
FEASIBILITY STUDY:
ENVIRONMENTAL IMPACT ASSESSMENT
GUIDELINES
Prepared by
CPCS Transcom - Louis Berger International Consortium
Ottawa, Canada & Washington D.C., United States


For Ministry of Communications, People’s Republic of China

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and
ADB and the Government cannot be held liable for its contents. (For project preparatory technical
assistance: All the views expressed herein may not be incorporated into the proposed project’s design.)
                                                                              Improved Guidelines for Road Network Feasibility Study
                                                                              Section F: Environmental Impact Assessment Guidelines

                                                               TABLE OF CONTENTS
                                                                                                                                                               Page
Introduction .........................................................................................................................................................1
   Objective .........................................................................................................................................................1
   Rural v Urban ..................................................................................................................................................1
   Project Types ..................................................................................................................................................2
Environmental Impacts of Road Projects ...........................................................................................................2
  Habitat Modification ........................................................................................................................................3
  Barrier Effects .................................................................................................................................................4
  Resource Exploitation .....................................................................................................................................4
  Poor Construction Methods ............................................................................................................................5
PRC Environmental Approval Process...............................................................................................................5
 Determining the Environment Category..........................................................................................................5
 Environment Assessment Documents ............................................................................................................6
 PRC Environment Approval ............................................................................................................................7
ADB Environmental Assessment........................................................................................................................8
 Determining the Environment Category..........................................................................................................8
 Environment Assessment Documents ............................................................................................................9
 ADB Lending Modalities................................................................................................................................10
 ADB Environmental Impact Assessment Contents.......................................................................................11
Environmental Impacts .....................................................................................................................................13
  Preconstruction Period Impacts ....................................................................................................................14
  Construction Period Impacts.........................................................................................................................15
  Operating Period Impacts .............................................................................................................................15
  Indirect and Cumulative Impacts...................................................................................................................16
Mitigation ..........................................................................................................................................................18
  Common Planning and Design Phase Mitigation Measures ........................................................................18
  Common Construction Period Mitigation Measures .....................................................................................20
  Common Operating Period Mitigation Measures..........................................................................................22
  The Environmental Management Plan .........................................................................................................23
Project Alternatives...........................................................................................................................................23
Cultural Heritage...............................................................................................................................................24
Environmentally Responsible Procurement (ERP)...........................................................................................24
  Using the Environmental Assessment Process to Strength ERP.................................................................24
  Using ERP to Strengthen the Implementation of EMPs ...............................................................................24
  List of Ineligible Items ...................................................................................................................................24
Monitoring .........................................................................................................................................................25
 Compliance and Effects Monitoring ..............................................................................................................25
 Independent Monitoring ................................................................................................................................25
 EPB Monitoring Capacity ..............................................................................................................................25
Estimating and Presenting Costs Involved .......................................................................................................26
Technical Capacity Requirements....................................................................................................................26
Public Consultation and Information Disclosure...............................................................................................26
Conclusions ......................................................................................................................................................27
Appendix A: Types of Environmental Impact ...................................................................................................28
Appendix B: Example of Environmental Management Action Plan.................................................................36
Appendix C: Example of Soil Erosion Prevention Plan ...................................................................................46



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                                                      Section F: Environmental Impact Assessment Guidelines

                                                 SECTION F:

                      ENVIRONMENTAL IMPACT ASSESSMENT GUIDELINES

Introduction

      Objective

      (i)     These These guidelines have been prepared for the Government of the People’s Republic of
              China (PRC) to provide guidance in conducting Environmental Assessment (EA) of highway
              projects in accordance with the Asian Development Bank (ADB) Environmental Assessment
              Guidelines, 2003 (Environmental Guidelines) and ADB Environment Policy, 2002
              (Environment Policy). 1 These guidelines are designed to provide assistance for compliance
              with ADB requirements, and do not provide guidance on environmental assessment
              compliance requirements under PRC regulations. The guidelines are designed to provide
              guidance to PRC Executing Agencies (EA), Implementing Agencies (IA), consultants,
              construction contractors, and highway operators.
      (ii)    When projects involve ADB-derived funds, ADB environmental specifications will need to be
              applied wherever PRC specifications provide inadequate coverage. Based on the ADB’s new
              environmental policy, officially adopted in late 2002, ADB guidelines and standards cannot be
              in conflict with host country environmental regulations and standards; i.e., ADB guidelines
              should be applied only when host country standards do not provide the same level of
              protection as those defined by the ADB. This means that when the host country calls for an
              environmental assessment for a given project, yet the ADB specifies a lesser EA such as an
              Initial Environmental Examination, the host country specifications must be followed.

      Rural v Urban

      (iii)   It is important to distinguish between projects proposed for mainly rural settings versus those
              planned for predominantly urbanized areas. Road developments in these two environments
              present significantly different environmental issues.
      (iv)    In the rural setting, the key environmental impacts usually revolve around removal of
              productive agricultural lands and the opening up of previously inaccessible, or marginally
              accessible, territory to in-migration and large-scale resource harvesting. Introduction of new
              sources of noise is often an issue in rural settings where ambient noise levels are typically
              low. Furthermore, because rural life is so closely linked to biophysical conditions, any
              changes to environmental conditions such as water quality, erosion and biodiversity, will have
              a disproportional impact to residents.
      (v)     In the urban setting, where population densities are higher, the dominant impacts have to do
              with displacement of people and their homes, general neighborhood disruption, local airshed
              contamination, and noise. In those urban areas where the mode of travel is dominated by the
              non-motorized vehicle, access and movement restrictions become major factors to consider
              when planning facilities for motorized vehicles. Consultation is important for both urban and
              rural locations. It enables road project proponents to identify potential impacts as well as local
              sources of information and knowledge, to highlight community concerns about the effects of
              road changes on lifestyles and welfare, and to encourage participation in the development of
              workable solutions.
      (vi)    In reality, most rural projects are actually a mixture of rural and urban sections. By definition,
              the urban areas at the ends of the road, as well as any urban areas traversed by the road,
              are an integral part of the project and are therefore included in any EA. On the basis of
              flawed economic reasoning, many road planners purposely exclude urban areas from
              projects in order to reduce costs. This applies particularly to the terminuses. Later, they find
              that the traffic problems which result from a larger capacity road feeding into a lower capacity

1
    Documents available at ADB web site www.adb.org



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             urban arterial (congestion, safety, restricted access, etc.) require remedial actions that are far
             costlier than early preventive measures would have been. All components of a road that
             make the road functional, including all urban sections through which a project road passes or
             ends, should be included in the Project design and EIA assessment.

    Project Types

    (vii)    Outline types of projects to be included under these guidelines i.e. upgrades, realignments,
             tunnels, bridges, new alignments etc. For example:
             • widening and adding lanes;
             • adding new pavement and strengthening pavement;
             • upgrading roads from season to all weather;
             • constructing realignments and bypasses were special conditions, such as urban
                 congestion, dense settlement, and highly sensitive environments such as parks and
                 wildlife sanctuaries exist;
             • constructing grade separations for major road and rail intersections;
             • upgrading of interchanges with other roads;
             • improving, reconstructing and new bridges and culverts;
             • improving traffic management systems; and,
             • improving road ‘hardware’ such as lighting, signage and other markings.

Environmental Impacts of Road Projects

    (viii)   Key environmental issues of road project are as follows:

Activities or Issues                   Impacts and Impact Issues
1. ROW clearance                       a. Taking of land and property
                                       b. Removal of trees
                                       c. Removal of community utilities
2. Maintain safety for road users      a. Dust created by construction & regular traffic
on existing road                       b. Wet, muddy, slippery conditions on road
                                       c. Signage or flagmen
                                       d. Barriers along edges of work areas & where culverts & bridges
                                       under construction
                                       e. Impacts from temporary roads
3. Operate quarries & borrow pits      a. Dust
                                       b. Noise
                                       c. Safety hazards
                                       d. Site restoration
4. Operate asphalt plants (AP)         a. Emissions of dust and fumes
and/or concrete batch plants           b. Diesel and bitumen handling & storage, spills of bitumen and
                                       diesel are toxic to fish etc
                                       c. Cement handling and storage
                                       d. Noise

5. Store and handle diesel & waste     a. Diesel & waste oil in ground or water bodies
oil
6. Transport materials                 a. Dust
                                       b. Noise and vibration
                                       c. Damage to rural roads
                                       d. Traffic safety
7. Drain road works areas (also        a. Erosion of road-bed & material beyond ROW
temporary)                             b. Flooding of nearby land
                                       c. Material in run-off can pollute water bodies, block drains and
                                       streams, cover adjacent land, damage plants



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Activities or Issues                  Impacts and Impact Issues
8. Cut slopes & embankment            a. Erosion or slippage of slopes
slopes (also of materials disposal    b. Material beyond ROW
piles and of temporary roads)         c. Undermining of road-bed
                                      d. Damage water quality, other land, forests
                                      e. Dust, noise, traffic, vibration
9. Re-align road and/or build new     a. Damage to rivers and water bodies
road (also temporary roads)           b. Damage to land & natural resources
                                      c. Social impact in affected communities
                                      d. Noise & vibration from piling or drilling
10. Dispose of surplus material       a. Unstable material erodes and flows onto other land or into water
(also slope stabilization)            bodies
                                      b. Damage to land & natural resources
                                      c. Erosion or slippage of slopes
                                      d. Materials beyond ROW
11. Build or expand bridges           a. Damage to rivers and water bodies
                                      b. Damage to land & natural resources
                                      c. Social impact in affected communities
                                      d. Noise & vibration from piling or drilling
12. Manage work        sites   and    a. Damage existing road
adjacent areas.                       b. Alternate dust and slippery mud create safety hazards for road
                                      users.
13. Road operations                   a. Air pollution
                                      b. Noise
                                      c. Runoff (includes, oil, diesel, heavy metals)
                                      d. Road safety

   Habitat Modification

   (ix)    There are two interrelated types of habitat modification:
   (x)     Transformation and Loss- Transformation involves changes in the biophysical conditions of
           a habitat, e.g., increased temperatures, noise, or air pollution, as well as drying out of the
           habitat or cutting trees. When this occurs along roads, it is termed road effect or edge effect.
           The edge effect zone typically extends 200-400 m on either side of the cleared road surface,
           including verges and ditches. The edge effect zone is usually asymmetrical, with boundaries
           reflecting local environmental variables such as slope, winds, and habitat suitability on both
           sides of the road. Knowledge of the likely width of the edge effect zone allows informed
           estimation of the proportion of the land area, beyond the physically disturbed right-of-way,
           that needs to be included when estimating impacts.
   (xi)    Edge effects can be measured as changes in productivity, under-storey species numbers,
           overall species abundance and diversity, and micro-climatic conditions. Both new (green-
           field) and rehabilitation projects often significantly disturb vegetation communities. For
           example, the cutting of canopy trees leads to complete floristic transition from shade-loving
           species to pioneering and sun-tolerant plants. Naturally, these changes have profound effects
           on the local wildlife. While species richness in fragmented areas sometimes exceeds
           predevelopment levels, loss of native communities often occurs, and is considered a serious
           negative ecological impact. Unimproved roads may accommodate a considerable number of
           species that would be severely threatened by improvements such as widening. Only a small
           number of species or wildlife communities are associated with paved road rights-of-way.
           With transformation of land areas, rehabilitation and repair is possible, often at considerable
           cost, while loss such as for roadways, building sites, etc. is no longer available to the natural
           ecosystem. Loss represents a 100% removal of that land area from the interconnected
           natural environment.
   (xii)   Isolation- In areas with high human population densities and steady degradation to natural
           habitat, wildlife populations of all types find it increasingly difficult to survive. A main tactic for
           population maintenance is movement from one feeding/breeding area to another along


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             established travel routes, often forested corridors. New or upgraded roads can easily cut off
             these travel routes, isolating populations in areas too small for survival and maintenance of
             genetic diversity. Coupled with other factors related to human encroachment and hunting
             pressures, populations can rapidly destabilize and die out. Therefore an understanding of
             travel routes and maintenance of green corridors, within an ever more fragmented landscape
             is a key part of responsible road-related impact management.

   Barrier Effects

   (xiii)    Linear developments such as roads, railroads and even power transmission lines become
             barriers when they are, or are perceived by wildlife to be, impossible or dangerous to cross.
             In this sense, the barrier effect is both physical and psychological. The four most important
             components of road corridors that can act as functional barriers to wildlife movements are:
             shoulders, ditches and drains; poorly-designed crossing structures; and the traffic.
   (xiv)     Shoulders, Ditches and Drains- The construction and operation of a road brings about
             changes in the microclimatic conditions at the edge of the road. Variables like temperature,
             humidity and evaporation are affected by the presence of roads. Research suggests that
             such edge effects extend from 200-400 meters on either side of the pavement. This zone of
             altered microclimatic conditions can become inhospitable barriers for the entire range of
             organisms from insects to large mammals. These conditions can assist non native species,
             which have been transported by vehicles to new areas, to get a foothold and out-competing
             local flora and fauna, eventually spreading and eliminating indigenous habitats. The physical
             characteristics of roadside areas may also play a large role in determining the extent of the
             barrier effect. Deep ditches and steep embankments are especially formidable barriers to
             smaller terrestrial species such as amphibians and reptiles, as are cleared ground where
             most species are exposed to predators.
   (xv)      Crossing Structures- Culverts, underpasses, and bridges often do not incorporate features
             that encourage their use by animals, thus ultimately functioning as physical barriers to
             movements of both terrestrial and aquatic species. Factors influencing the effectiveness of
             crossing structures are structure width, approach area, length, height above ground, and
             visibility from the structure. A basic understanding of an animal’s life history and generally
             preferred habitat, feeding activity and movement patterns are essential to successful design
             of crossing structures. Such data are nearly always available from local communities. For
             aquatic animals, channelization of flowing water where roads cross streams creates a
             physical barrier, because it often results in increased water velocity, preventing many aquatic
             species to move against the newly increased currents. Culverts are of particular concern
             since their configuration, diameter, length and placement in the watercourse directly
             determine whether they will block or permit passage of aquatic species and whether they will
             become chronic erosion points. Roads passing through or beside wetlands (e.g., marshes,
             swamps, and lakes) can inhibit or prevent aquatic animals from moving between the wetland
             and adjacent habitats (as has been documented for major state highway development in
             Rajasthan). If these animals are able to cross the road barrier (e.g., amphibians, turtles), they
             then risk heavy mortality from road traffic.
   (xvi)     Traffic- Traffic is the second highest cause of animal mortality along roads, with hunting and
             illegal trapping being No. 1. Traffic acts as a barrier due to the noise and air pollution it
             generates in a narrow band. In areas where wildlife travel routes exist facilities such as
             underpasses should be constructed, if the road alignment cannot be shifted. The better the
             road, the higher the traffic volume the larger the number of illegal hunters.

   Resource Exploitation

   (xvii)    The four types of resource exploitation impacts directly linked to road development are: tree
             cutting, Non-Timber Forest Product (NTFP) harvesting, hunting and tourism.
   (xviii)   Tree Cutting- Tree cutting is nearly always a part of road improvement since PRC, starting in
             the 1960s, introduced a widespread tree replanting program along roadsides to counter the
             fact that forests were being rapidly converted to agricultural land, and recognizing the value



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             of trees for shade, fuel and fodder. These roadside forests were planted almost to the edge
             of pavement and are now designated as protected. As well, PRC is protecting its remaining
             forests by giving most a reserve and protected status, prohibiting any cutting without special
             applications and clearances. All road planners must be aware of these requirements and the
             need to consult with state Dept. of Forests and submit Forest-Land conversion application, in
             each state.
   (xix)     Non-Timber Forest Products (NTFP) Collection- Traditional NTFPs have formed an
             important food and income source for populations living near or in forests, such as Tribals.
             Roadside ‘forests’ and areas on either side of the road for 100-200m are often picked clean
             of all NTFPs. NHAI, State Forest Dept. and State PWDs do not have enforcement resources
             to control this harvesting. Most NTFPs can be harvested in a sustainable manner so long as
             they are taken with care to avoid damage to surrounding areas or the local extinction of a
             particular NTFP.
   (xx)      Hunting- Hunting takes place in all forests in PRC, even though it is prohibited in most. Any
             new roads passing into or close by previously inaccessible lands make the forest patches
             vulnerable to rapid wildlife depletion by hunting. Road planners must be aware of this fact
             and consider options carefully, consulting wildlife specialist when possible.
   (xxi)     Tourism- Improved and new roads stimulate tourism, leading to both negative and positive
             effects. Destinations such as parks and sanctuaries previously off the beaten track, become
             easily accessible and are stressed, possibly damaged, by too many uncontrolled visitors due
             to a lack of staff, facilities and equipment. Conversely the added tourists bring needed
             revenues to the destinations helping to improve the facilities and staff resources (assuming
             that funds are applied where they originate).

   Poor Construction Methods

   (xxii)    Once completed, environmental studies, whether screening studies or full EIAs are generally
             not used again, and/or are never brought to the attention of design engineers, contractors
             and/or construction supervision staff of a PIU. As a result, contracts provide weak, if any,
             environmental guidance, contractors and proponents are given few incentives (clauses) to
             comply with mitigation requirements, and there is marginal environmental inspection. This is
             unfortunate since it is the construction activities that often result in serious short and long
             term impacts, could be almost totally avoided if dealt with in a preventative manner. A
             summary of these impacts have been listed in Table 1-Table 3. To illustrate how these
             actions can lead to ripple effects, selected common indirect and cumulative effects are also
             listed.

PRC Environmental Approval Process

   (xxiii)   All highway projects will be classified according to the requirements of the SEPA
             Environment Management Regulation. Projects are classified into one of the following:

   Determining the Environment Category

             •   Category A: Projects with potential for significant adverse environmental impacts. A
                 comprehensive environmental impact assessment (EIA) report is required to address
                 significant impacts. The project subject to Category A including:
             • Category B: Projects judged to have some adverse environmental impacts, but of lesser
                 degree and/or significance than those for category A projects. An environmental
                 assessment form is required to analyze the impact on some special environmental
                 sensitive components.
             • Category C: Projects with only slight adverse environmental impacts, No EIA report or
                 form is required, only an environmental registration form is required.
   (xxiv)    SEPA has issued an environmental checklist for all kinds of projects. The majority of highway
             projects in PRC are classified as Category A or Category B. The determination of the
             environment category is based on the most environmentally sensitive component of the


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           project. This means that if one part of the project is with potential for significant adverse
           environmental impacts, then the whole project is to be classified as Category A regardless of
           the potential environmental impact of other aspects of the project. Similarly, if the most
           sensitive component is classified B, then the project is to be classified B.
   (xxv) The projects subject to Category A include:
           • more than 50 km Class III and higher level roads;
           • less than 50 km Class III and higher level roads but has impact on environmental
               sensitive area;
           • 1000m and longer independent tunnel;
           • Less than 1000 m independent tunnel with impact on environmental sensitive area.
   (xxvi) The above mentioned environmental sensitive areas defined as follows:
           • Special Protected Area: county and higher level government approved protected area
               such as drinking water protection area, natural reserve, scenic spots, ecological
               protection area, basic agricultural land, soil erosion control area, forest park, geologic
               park, world heritage, national cultural relic protection units, historic protection area and
               etc.
           • Ecological Sensitive Fragile Area: sand storm source area, green land in desert area,
               lack water area, habitat area for rare vegetation and animal, natural forest, tropical forest,
               mangrove, coral reef, fish hatchery, wetland and natural fishery and etc.
           • Social Attention Area: dense crowd area, dense department office area, resort, school
               and hospital, and other areas possess historic, cultural, scientific and ethical value.
   (xxvii) Other projects are subject to Class B.

   Environment Assessment Documents

   (xxviii) There are two major documents is required:
            • TOR for environmental impact assessment
            • Environmental impact assessment report
   (xxix) For road project which might cause soil erosion problem, a separate soil erosion prevention
            plan is also required.

            Environmental Impact Assessment TOR

   (xxx)    In PRC, before conduct the environmental impact assessment, the EIA authors are required
            to complete a detailed EIA TOR in which the assessment scope, major environmental
            sensitive spots, environmental standards, methodology and detail plan should be presented.
            The TOR is required to be technically reviewed by experts selected by SEPA or relevant local
            EPB. The contents of EIA TOR should include:
            • Introduction
            • Project description
            • Environmental description
            • Identification of environmental factors and selection of assessment factors
            • Environmental baseline assessment
            • Environmental impact prediction
            • Proposed contents of the EIA reports
            • Staff and schedule
            • Budget

            Environmental Impact Assessment

   (xxxi)   Two major environmental impact assessment guidelines related to road projects are the
            Environmental Impact Assessment Technical Guideline (HJ/T 2.1-93) issued by SEPA in
            1993 and Specification for Environmental Impact Assessment of Highway (on trial, JTJ 005-
            96) issued by MOC in 1996. Meanwhile, SEPA has also issue some specific guidelines for




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            ecology, air, noise, water and risk impact assessment. Similar guideline for Soil Erosion
            Prevention Plan was issued by Ministry of Water.
   (xxxii) ADB Category A projects require a mandatory full environmental assessment. A summary of
            the contents of an EIA is following:
            • Introduction
            • Project description
            • Environmental description
            • Environmental baseline assessment
            • Environmental impact prediction
            • Mitigation measures
            • Environmental economic analysis
            • Conclusion
   (xxxiii) For international organization financed projects, additional contents including public
            consultation, alternative analysis, hazardous transportation risk analysis, resettlement plan
            and environmental management and monitoring plan are also required.

   PRC Environment Approval

   (xxxiv) According to the Environmental Management Regulation for Construction Projects issued by
             State Environmental Protection Administration (SEPA), the following projects are subject to
             SEPA approval:
             • National trunk roads;
             • Trunk roads subject to Western Development
             • National Expressway Network;
             • Trans provincial, prefecture and city highway;
             • Bridge of trans national, crossing gulf, crossing navigation section of big river
             • Independent tunnel
   (xxxv) The approval for other projects is subject to provincial or other lower level EPB.
   (xxxvi) The EIA report must contain soil erosion chapter for soil erosion related road projects while
             the independent Soil Erosion Prevention Plan should be approved by Ministry of Water
             before the EIA report submit for approval.
   (xxxvii) Based on China EIA law, before submit to relevant environmental agency for approval, the
             EIA report/form for road project should be submitted to the same level communication
             department for pre-review.
   (xxxviii) Normally, the Executive Agency should submit EIA report for approval at feasibility study
             phase. However, it can be delayed to preliminary phase with an agreement from relevant
             environmental protection administration/bureau. The environmental protection agency will
             inform the approval decision within 60 days on receiving the EIA report and within 30 days on
             receiving the EIA form.




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                          Environment Category


                           EA entrust qualified agency


                                Prepare EIA TOR                      Technical review


                       Conduct EIA and prepare EIA report



            Highway Sector                     SEPA/EPB                      Approved
               pre-review                    Technical review                 SEPP



                               SEPA/EPB                         No        Revise EIA report
                     Project Supervision Department
                                 review

                              Yes

                                SEPA/EPB                             No
                        Project Review Committee                                 Refuse
                                  review

                                         Yes
                     Project Supervision Department issue
                     approved document and publicize it to
                                    media


                      PRC EIA Review and Approval Process


ADB Environmental Assessment

   Determining the Environment Category

   (xxxix) All highway projects will be classified according to the requirements of the ADB Environment
           Policy and Environmental Guidelines. Projects are classified into one of the following:
           • Category A: Projects with potential for significant adverse environmental impacts. An
                environmental impact assessment (EIA) is required to address significant impacts.
           • Category B: Projects judged to have some adverse environmental impacts, but of lesser
                degree and/or significance than those for category A projects. An initial environmental
                examination (IEE) is required to determine whether or not significant environmental
                impacts warranting an EIA are likely. If an EIA is not needed, the IEE is regarded as the
                final environmental assessment report.




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                •   Category C: Projects unlikely to have adverse environmental impacts. No EIA or IEE is
                    required, although environmental implications are still reviewed.
                • Category FI: Projects are classified as category FI if they involve a credit line through a
                    financial intermediary or an equity investment in a financial intermediary. The financial
                    intermediary must apply an environmental management system, unless all subprojects
                    will result in insignificant impacts.
      (xl)      The majority of highway projects in PRC are classified as Category A or Category B. The
                determination of the environment category is based on the most environmentally sensitive
                component of the project. This means that if one part of the project is with potential for
                significant adverse environmental impacts, then the whole project is to be classified as
                Category A regardless of the potential environmental impact of other aspects of the project.
                Similarly, if the most sensitive component is classified B, then the project is to be classified B.

      Environment Assessment Documents

      (xli)     There are four broad types of EA which may be required by ADB funded highway projects:
                • environmental screening
                • initial environmental examinations
                • project-specific environmental impact assessment, and;
                • sectoral environmental impact assessment

                Environmental Screening

      (xlii)    All projects being considered for implementation should be subject to a screening.
                Environmental Screening is a categorization process which through the examination of a
                limited number of key environmental ‘triggers’ which would show project related impacts,
                help to define the severity of the affects and therefore the extent of recommended follow up
                work. In addition to identifying the key likely environmental effects, the screening would yield
                a rough description of the standard preventative and mitigative measures that might be
                applied and the net remaining effects. Finally a screening can be useful in identifying the
                general level of environmental costs involved should a project proceed. A good indicator that
                further EA work is needed is if the basic data defined above cannot be easily assembled by
                the investigator.

                Initial Environmental Examination (IEE)

      (xliii)   The IEE is a specific requirement of many ADB and World Bank2 funded projects. If a
                project is an ADB Category A project specifying a full EIA, the IEE should not be undertaken.
                The IEE is applied to projects which are likely to trigger only minor and well understood
                impacts, for which well known and effective mitigative measures have been applied in the
                past. Alternatively, if there is doubt regarding the extent of impacts, the first step could be an
                IEE since this could possibly avoid the much more costly EIA.
      (xliv)    The IEE focuses on concisely describing the valued and potentially sensitive existing
                biophysical and social environment components located within the project’s zone of
                influence3 , defining the source, extent and duration of likely effect and providing a specific
                plan, called the Environmental Management Action Plan (EMP), on what impacts need to be
                mitigated, where they occur, who must implement then, as well as monitor and report on
                these mitigative measures. Good EMPs also include rough cost estimates for each mitigative
                measure.




2
    While it is also referred to as the IEE, the World Bank calls this work an Initial Environmental Evaluation.
3
    Defining the zone of influence or impact boundary is a very important and often overlooked first step in EA.



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              Environmental Impact Assessment

   (xlv)      ADB Category A projects require a mandatory full environmental assessment. A summary of
              the contents of an EIA is included in Section 4.

              Sectoral Environmental Assessment

   (xlvi)     Often, with large loans, a number of projects are proposed at the same time. This is
              commonly referred to a sector-wide program. It is usually undertaken in the same region of
              a country, a state, or in smaller nations throughout the country. Since these projects affect
              other sectors, leading to cumulative and synergistic impacts, they need to be assessed
              together. For NHAI, an SEA might address impacts of sector-wide investment in a relatively
              large geographic area, such as a state, helping to integrate environmental concepts and
              strategies into the transportation planning process. This would require an analysis not only of
              infrastructure but also of land use, road user charges, land development and emissions
              legislation, as well as other policies that can influence transport choices. SEAs should have
              four key outputs:
              • an assessment of policy, legal and administrative conditions in terms of completeness
                   and appropriateness with regard to the sectoral initiatives proposed;
              • an analysis of alternative investment options, as opposed to project designs (alignments);
              • an institutional strengthening plan based on the examination of the capacity of key
                   regulatory agencies’ ability to set guidelines, enforce standards, manage an EA, review
                   EA results, and act as environmental opinion-shapers for senior decision-makers; and,
              • recommendations for sector-wide regulatory changes, presented as possible mitigative
                   measures; one example might be requiring the use of catalytic converters and alternative
                   fuels to reduce harmful vehicle emissions.
   (xlvii)    SEA can also be applied where a transportation mode is fixed but various road sub-projects
              need to be assessed. In this situation, the SEA is used to prioritize the sub-projects in terms
              of impacts, benefits, and EA requirements. This 'modified' SEA provides not only a process
              with which to identify the magnitude of the impact and the EA method to be applied, but it can
              also be used to prepare all environmental 'clearances' for those sub-projects which do not
              require a full EA. Annex 2 provides a detailed process for Sectoral EA as defined by the
              World Bank’s EA Update No. 4.

   ADB Lending Modalities

   (xlviii)   Project Loans. Project loans are given by ADB to assist in project-related investments.
   (xlix)     Sector Lending. Sector lending is a form of ADB assistance to a DMC for project-related
              investments based on considerations relating to a sector or subsector as a whole. The
              purpose of a sector loan is to assist in the development of a specific sector or subsector by
              financing a part of the investment in the sector. Such lending is appropriate particularly when
              a large number of subprojects in the sector or subsector are to be financed. A sector loan is
              expected to improve sector policies and strengthen institutional capabilities.
   (l)        Program Lending and Sector Development Programs. Program loans are given by ADB
              to assist a DMC in developing a sector (or subsector) as a whole and improving a sector's
              performance through appropriate policy and institutional improvements over the medium to
              long term. Program loans are given only to DMC governments. A broad-based sector reform
              and development plan that will enhance sector efficiency and performance, comprising in
              particular policy changes and institutional enhancement, is the basis for program lending.
              Program loans, as well as SDPs, should be targeted at sectors where the government is
              firmly committed to reform, but where significant economic, financial, or social costs are
              associated with the reform program are likely to hinder its smooth and timely implementation
              without the additional support and inducement provided by a program loan. Strong
              government ownership of the reform program is essential.




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   ADB Environmental Impact Assessment Contents

   (li)       The typical table of contents of the EA are as follows.

  I.        Introduction
  II.       Description of the Project
  III.      Description of the Environment
                                                 A.    Physical Environment
                                                 B.    Ecological Environment
                                                 C.    Socio-economic Environment
  IV.       Alternatives
  V.        Anticipated Environmental Impacts and Mitigation Measures
                                                 A. Physical Environment
                                                 B. Ecological Environment
                                                 C. Socio cultural and Economic Development
                                                 D. Environmental Impacts of Local Roads
                                                 E. Environmental Impacts of Transportation Centers
  VI.       Economic Assessment
  VII.      Environmental Management Plan
                                                 A.    Environmental Management Plan EMP
                                                 B.    Institutional Requirements
                                                 C.    Monitoring
  VIII.     Public Consultation and Disclosure
  IX.       Conclusions
            APPENDIX 1                                 Summary Soil Erosion Prevention Plan
            APPENDIX 2                                 Environmental Management Action and Monitoring Plan


   (lii)      Detailed requirements and format are presented on the ADB web-site:
              http://www.adb.org/documents/Guidelines/Environmental_Assessment/Content_Format_Initia
              l_Environmental_Examination.pdf
   (liii)     Introduction states, i) the base of the SEIA, usually the EA’s EIA, ii) the entity actually
              compile the EIA, iii) situation of approval procedure, iv) design used for the EIA, and
              additional information for the SEIA. If the EA’s EIA doesn’t include some components, the
              additional sources are required. All components without any environmental impact
              assessments require initial environmental examination (IEE), which is a kind of screening
              procedure.
   (liv)      Description of Project provides concise information about the project components. An
              objective of the description is to provide magnitude of environmental impacts caused by the
              Project. The descriptions should correspond with the Maps. All components should be
              covered in this section. The definition of project area, which is usually defined as counties
              where the Project components reside, should be provided. Also, definition of environmental
              impact area should be provided in this section.
   (lv)       Description of Environment provides concise information about the project area. This
              section can be organized by hierarchical structure. First, physical environment is explained as
              the infrastructure of the region such as topography, geology, and meteorology. Second, the
              natural environment, which is based on the infrastructure, is presented. And finally, socio-
              economical environment is elaborated as the super structure.
   (lvi)      Current air quality, noise level, water quality should be presented as a part of physical
              environmental explanation with survey data, which should be in the EIA. Ecological
              environment should be described on the basis of a survey and it should be described what
              kind of flora and fauna was found during the survey. For these data, information regarding “by


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              whom”, “when”, and “how” the data were surveyed is crucial. PPTA consultants should
              supplement current environment data if EIA provide insufficient environmental data for the
              Project components. Particularly if new components are included after the EA’s Feasibility
              Study (SF), such survey is almost always required.
    (lvii)    Information of protected species is imperative in this section. The investigation should be two
              folds, which are investigation based on record and investigation based on survey. First, on
              the basis of existing record and publications, inventories of endangered species should be
              developed for the Project area. If possible, the inventories should be on the maps.
              Consultation with ecologists who study project area can complete the inventory if they are
              available. Second, the field survey should be conducted. The survey should concentrate on
              the Project impact area. Ideally, the survey should be conducted four times to cover four
              seasons. PPTA consultant should examine the way survey was conducted during the EIA
              preparation and if the preparatory survey is not adequate, supplemental survey should be
              executed before SEIA completion.
    (lviii)   For nature reserves, consultation with officials who administrate the area on site is important
              and should be conducted in addition to above. The consultation should clarify, i) whether
              there is possibility that planned project affect the protected area, ii) where is protected
              species, iii) what is the restricted activities near the protected area.
    (lix)     For archaeological relics, investigation should be three folds: first, historical background
              should be studied; second, the investigation records should be examined; then, site survey
              should be conduced. These investigations should be conducted under supervision of local
              Cultural Bureau.
    (lx)      Alternatives. Alternative should start from non-action alternative. Then, alternative transport
              modes are discussed. And finally, alternative alignments are described. To discuss non-
              action alternative, the problems of current highway network should be elaborated with traffic
              data. Using current and future traffic data, expected problems should be presented as many
              as possible. For alternative alignment, it is recommended to summarize the result using a
              table as shown below.

Table: Alternative Comparison
                                        Water Quality
                               Soil                                                     Land Acquisition    Engineering Geological
              Alternative                   and             Noise        Air Quality
 Sections                    Erosion                                                    and Resettlement         Conditions
                                        Disturbance
                  A         Less       Less               less noise   Insignificant    large amount of     high risks of mud-flows
                                                          sensitive                     land acquisition,
                                                          points                        but almost no
                                                                                        resettlement
    I             B         More       Crosses twice    cross       Insignificant       less land           avoiding mud-flow and
                                       and in parallel  through                         occupation          slides by tunnels and
                                       with River       villages                                            bridges
                  C         Less       Similar to B     Similar to Insignificant        Similar to          Similar to B, but longer
                                                        B                               alternative B       length
                                                    Recommended alternatives: Alternative B



    (lxi)     Anticipated Environmental Impacts and Mitigation Measures. This is main section of
              SEIA. As for the organization of this section, the same organization as the description of
              environment (i.e. physical, ecological, and socio-economical impacts) can be utilized. Each
              impact should be explained in the construction phase and in the operation phase. Physical
              impacts can be i) impacts caused by earth works, ii) impacts to the water quality, iii) impacts
              to the air quality. If tunnels are planned in the project, impacts to the groundwater should be
              discussed. Usually, soil erosion is one of key impacts of in the physical impacts. Ecological
              impacts should be elaborated on the basis of physical impacts expected by the project.
              Particular attention should be given to the endangered species and protected area. Socio-
              economical impacts are to be discussed with positive impacts and adverse impacts.
    (lxii)    Regarding impacts and measures for civil works, there is a kind of template of best practices.
              The templates are for comparison with the EIA and they should not be copied. Apply better




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              practice for each project. If some measures are missing EIA, PPTA consultants should
              examine the situation and take appropriate action.
   (lxiii)    Economic Assessment include cost and benefits of environmental impacts; costs, benefits,
              and cost effectiveness of mitigation measures; and for environmental impacts that have not
              been expressed in monetary values, a discussion of such impacts, if possible in quantitative
              terms. The cost should include not only the direct mitigation cost such as that for noise
              control, environmental facilities and equipment, environmental organization and staff, tree
              planting, environmental monitoring and etc., but also the indirect environmental cost such as
              that for drainage system, slop protection and etc.
   (lxiv)     Environmental Management Plan. Measures discussed in the SEIA should be implemented
              by the EA and IA. The Environmental Management Plan (EMAP) should be provided in an
              appendix using matrix form. In the main text, principals of EMAP and institutional
              requirements are discussed. In some cases, training program for officials in EA/IA will be
              required. In the institutional arrangement, monitoring and reporting system is one of the key
              components.
   (lxv)      Public Consultation and Disclosure. The ADB’s Environment Policy and PRC regulation
              mandate the procedural requirements for effective public consultation and information
              disclosure in the EA process. For category A projects, the environment policy requires public
              consultation at least twice: once during the early stages of EIA field work and once when the
              draft EIA report is available. The EIA Public Consultation Guideline and Requirement issued
              by SEPA in 2006 should be strictly followed to ensure a fully information disclosure and fully
              consideration of the public concerns. Recommendations on how the project might address
              concerns raised during the consultation, and the recommended measures for continuous
              public consultation during the environmental management program should be proposed.
   (lxvi)     Supporting Documentation, including appendices and maps should be attached to the
              SEIA. Appendixes to be provided for an SEIA are usually i) soil erosion protection plan
              (SEPP), ii) environmental cost and benefits, iii) environment management action plan
              (EMAP). SEPP should be provided by the EA and is required to be approved the Ministry of
              Water Resources. The SEPP appendix is to summarize it. EMAP is a key document of SEIA;
              it should be practical guidance in the implementation stage. The PPTA consultant should
              develop EMAP using up to date information of the Project. EMAP should be complete for all
              project components.
   (lxvii)    Maps in the SEIA should provide information as follows.
              • The base map should be accurate, and it should have at least two longitudes and
                   latitudes.
              • All sites referred in the texts, such as Major rivers, Natural reserves, Tourist Spots, and
                   Cultural relics in the Project area, should be indicated.
              • The Project expressway alignment should have information of interchanges, major
                   tunnels, major bridges.
              • The Project highways/roads should indicate the name of starting and ending point, major
                   bridges and tunnels.
              • Other roads connected to the project roads should be indicated.

Environmental Impacts

   (lxviii)   Determining impacts, their severity and duration is difficult and requires technical skill,
              experience and knowledge of the source of the impact, the impact mechanism and the
              affected ecosystem component. There are three types of impacts:
              • direct impacts
              • indirect impacts; and,
              • cumulative impacts.
   (lxix)     These can be broken down into another 6 subgroups depending on impact’s geographic
              extent, duration, severity and whether the impact is positive or negative. PRC government
              staff, consultants and contractors not familiar with impact categories may reference Chapter 6




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            of the Roads and Environment Handbook, enclosed as Appendix X of this guideline (World
            Bank, 1997).

   Preconstruction Period Impacts

   (lxx)    It is during this stage that all EA documentation must be prepared and the plan for
            implementation of mitigative actions defined. By knowing where/what environmental hotspots
            exist or future issues are likely due to inappropriate or shortsighted planning, planners can
            avoid serious impacts by, inter alia, modifying a design condition, adjusting alignment
            segments, varying construction techniques, or modifying the earthworks plan. Therefore,
            knowledge of these hotspots is the cornerstone to technically sound and credible EA.
   (lxxi)   Possible cause-effect scenarios associated with design and planning problems are illustrated
            in Table 1. Of these the most important relate to keeping land and asset losses to a
            minimum and making sure that drainage alterations will not affect the natural surface water
            system to the extent where long term chronic effects such as damming and desertification
            take place. Poor identification of valued ecosystem components leading to a focus on less
            important impacts and overlooking the real issues is sometimes very serious since the entire
            EA is thrown off track.

     Table 1 : Common Environmental Impacts and Causes: Design/Pre-Construction Stage

    ALIGNMENT
    Access Restrictions due to enlarged and fenced roadway, elevated sections, etc.
    Land and asset losses due to unwillingness to make alignment adjustments
    LAND
    Call for excessive/extreme unprotected embankment slopes, due to attempts at cost savings
    Use of unlicensed quarries and borrow areas, due to inadequate knowledge of regulations and/or
    misguided need to reduce costs per tonne of material extracted
    EARTHWORKS AND RELATED
    Sloppy earthworks calculations leaving excessive fill or cut, requiring disposal plans and/or additional
    extraction leading to long-term impacts.
    Poor design and planning of quarry, aggregate and other borrow areas, including development of access
    roads to these sites
    WATER
    Constriction, blockage or chronic degradation due to inadequate road and crossing structure design
    Inadequate preparation for construction water needs, knowledge of local water balance and depletion of
    local resources
    Storm and surface water drainage obstructed due to engineering errors e.g., wrong ‘model-storm’ used
    FLORA AND FAUNA
    Excessive and uncontrolled loss of roadside tree plantations during construction
    Restriction or obstruction of wildlife movement/migration by enlarging road or placing of new component
    such as a bypass
    Trespassing onto Reserve Forest
    ENVIRONMENTAL QUALITY
    Failure to note sensitive air quality sites such as hospitals and schools and reroute alignment around or
    away from these. Unmanaged Air Quality issues
    Same problem as above for identified noise-sensitive locations- Unmanaged Noise levels
    CULTURAL HERITAGE
    Unnecessary loss of cultural properties due to inappropriate road planning or failure to properly identify
    cultural heritage and archaeological sites.
    BUILT ENVIRONMENT
    Deficient planning for early relocation of utilities such as electrical power and water services prior to
    ground breaking
    Insufficient provisions for alternated access and detours for affected households and businesses




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   Construction Period Impacts

   (lxxii)    Construction period impacts (Table 2) associated with the physical building of the roadway(s)
              and all associated infrastructure are very often linked to the most intensive short term effects,
              and, if not properly mitigated, can lead to chronic long term impacts and losses for both the
              biophysical and human environment. Well known of these relate to poor soil conservation,
              inadequate surface water drainage restoration and poor management of construction camp
              wastes. A contractor competent in implementing mitigative measures and a proponent
              committed to enforcement together can avoid most impacts (Annex 4).

              Table 2 : Common Environmental Impacts and Causes: Construction Stage

  SOIL
  Soil Erosion due to inadequate and immediate application of stabilization techniques
  Illegal and excessive borrowing of Earth
  Contamination of soil from fuel and lubricants
  Contamination of soil from construction wastes and quarry materials
  Soil compaction due to excessive enlargement of construction work area
  WATER
  Damage to surface water resources used by local population, e.g. drainage of ponds and tanks.
  Construction materials blocking drainage and run-off
  Contamination of construction site surface runoff leading to pollution of receiving water bodies such as rivers,
  lakes and ponds
  Contamination of water from fuel and lubricants
  Inadequate treatment of sanitation and waste disposal in construction camps
  AIR
  Emission from construction vehicles and machinery
  Construction related dust, from movement of vehicles at site and to sites from borrow and quarry sites, etc.
  NOISE
  Inadequate prevention of construction-related noise from vehicles, asphalt plants, crushing and batch plants
  and equipment
  Noise from blasting operations
  FLORA
  Loss or damage to vegetation
  Failure to properly manage/store topsoil, leading to degraded site rehabilitation, poor revegetation and often the
  introduction of non-native pioneering species.
  FAUNA
  Loss, damage or disruption to fauna due unnecessary and un-approved increases in construction work areas
  and failure to control construction camp activities related to hunting and gathering of forest products, etc.
  SAFETY AND ACCIDENT RISKS
  Accident risks from construction activities
  Loss of access / Traffic jam
  Health issues related to adequate drainage and prevention of stagnant water which can act as mosquito
  breeding areas, leading to such diseases as malaria, yellow fever and encephalitis
  Inadequate sanitation and first aid, leading to disease outbreaks and loss of productivity and even life.
  CULTURAL PROPERTIES
  Unaware or unconcerned contractors damaging, destroying or even looting religious /cultural/historical
  (archaeological) properties


   Operating Period Impacts

   (lxxiii)   The operating period of a road starts at commissioning. Impacts are nearly all related to air
              and noise pollution due to motor vehicle operation, safety issues due to increased traffic
              volume and speed and the movement of hazardous and toxic materials on these roads,
              particularly through urban areas. Finally there is the issue of the maintenance and
              management of mitigative measures such as revegetation and tree planting schemes initiated



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           during the construction period. Table 3 lists a number of the more common impacts
           stemming from the operation of new or upgraded roadways.

               Table 3: Common Environmental Impacts and Causes: Operating Period

   HAZ. AND TOXIC MATERIALS
   Contamination from spills due to traffic and accidents
   Accidents involving hazardous materials without adequate spill contingency planning and clean up
   AIR AND NOISE
   Increased traffic, poor road geometry, insufficient vehicle emission control, leading to air pollution in
   previously unaffected areas
   Failure to implement noise abatement measures such as plantings, berm construction, noise barrier
   construction, noise abatement awareness program (incl. use of horns) and relocation of sensitive receptors
   such as hospitals and schools, leading to chronic noise pollution
   STORMWATER RUNOFF
   Unmanaged stormwater drainage from road surfaces drained directly into water courses leading to chronic
   contamination
   Permitting ponding of water along roadsides, ditches/drains and for more than 48 hours, creating breeding
   grounds for mosquitoes and other insect-borne diseases.
   FLORA AND FAUNA
   Failure of contractor to prepare a mitigation completion report for hand-over to NHAI, leading to a collapse
   of the mitigation program.
   lack of maintenance of revegetation and tree planting, leading to steady degradation
   Inadequate treatment of roadside vegetation leading to excessive wildlife losses, i.e., roadside grazing of
   large herbivours,etc.
   Inadequate Fencing and access controls along the roadways and at rest areas leading to trampling of
   vegetation, harvesting and animal-vehicle collisions.


   Indirect and Cumulative Impacts

   (lxxiv) Frequently the most serious impacts of road construction and rehabilitation are not those
           directly related to the cause and readily observable, but rather the indirect impacts and those
           that arise due to a number of impacts working in a additive fashion or a number of impacts
           causing an effect that is synergistic or greater than the sum of the individual impacts
           combined (Table 4). These are complex and need to be considered only when projects
           involve:
           • unusual and/or complex works such as deep tunneling,
           • construction close to highly sensitive areas,
           • construction as part of a serious of infrastructure works in the same geographic area, or
               along the same river system; or
           • when the project is located in an area whose biophysical environment is know to be
               stressed and ecologically unstable, such as a polluted river system.




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                Table 4 : Summary of Common Project Generated Activities and Resulting Direct,
                                       Indirect and Cumulative Impacts

Sources of Impact                    Direct                        Indirect           Cumulative/Synergistic
                                     Impacts                       Impacts                    Impacts
Clearing of                  Loss or degradation            Reduction in habitat        Decline in wildlife
vegetation                   of habitat                     use                         population and
                                                                                        diversity

Right-of-way                 Fragmentation of               Reduction in                 Reduction in
clearing                     habitat                        structural diversity          population
                                                             & habitat isolation         size and integrity
Construction                 Barrier to dispersal           Disproportionate             Competition for
and operation                of non-avian wildlife          utilization of habitats      resources and
of roads                                                                                 redefined boundaries
                                                                                         of home range
                                                                                         Increased stress and
                                                                                         related health
                                                                                         declines

Application of               Transportation of              Changes in wetland           Loss of habitat niche
herbicides                   chemicals to water             characteristics              for dependent
along roadways               bodies                                                      species,
                                                                                         population decline

Road construction            Soil erosion.                  Siltation of                 Degradation of
on unstable land                                            water bodies                  aquatic habitat;
  .                                                                                      fewer species

Construction &               Dust on vegetation,            Reduced primary              Reduction of food
Operational period dust      interference w/photosynth.     productivity.                sources, species
                                                                                         decline

Traffic                      Disturbance to                 Changes in activity          Competition for
                             wildlife species               patterns leading to          resources with
                             in road verges                 habitat use more             nocturnal animals,
                                                            during night                 decline of certain
                                                                                         species.
                                                            Abandonment of               Overuse of other
                                                            habitat to others            habitat areas,
                                                                                          some species decline

Increase in                  Increased road kills           Decline in                   Change to trophic
Traffic volume                                              of amphibians                dynamics and
                                                            populations                  species comp.


Channel                      Alteration in                  Degradation                  Threats to
Alteration/                  direction and/or               of flow or                   conservation
Constriction                 volume of water                flooding                     of some wetland,
                                                                                         reduced productivity
                                                            Deminished                   Localized drought

                                                            GW recharge                  Reduced habitat
                                                            in receiving                 suitability for some
                                                            streams                      species

Road alignment               Increased access               Unplanned                    Decline in habitat
through wildlife             to pristine wildlife           development                  quality
habitat                      habitat areas                  Poaching                     Species decline




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Construction                Stressing                  Changes in                    Increased mortality
activities,                 wildlife & habitat         behavioral responses

Construction of             Facilitation of            Eventual acceptance           Colonization
temporary access            public access              of road as permanent          stimulating
roads for quarries                                                                   road-habitat
                                                                                      conversion

Inadequate management       contamination of surface    worker health problems       reduced profits, cost
of construction wastes:     water, groundwater          sickness, epidemic           cutting, labor unrest
sewage and garbage, oily    aquatic resources contamin. reduced output               environment
wastes.                                                                              degraded



Mitigation

     Common Planning and Design Phase Mitigation Measures

     (lxxv)    Mitigative measures associated with a project’s Planning and Design Phase should be mostly
               preventative in nature (Table 5). By integrating mitigative measures into project planning and
               design elements, many impacts are avoided or reduced. Even though this action will cost a
               bit more there will be a net benefit.

     Table 5 : Common Mitigative Measures Applied During Project Planning and Design Phase

IMPACT                                              COMMON MITIGATIVE MEASURE
ALIGNMENT
Access Restrictions due to enlarged and fenced          Provision of service roads.
roadway, elevated sections, etc.                        Underpasses or grade separations.
                                                        Shift centerline of the road has been shifted / adjusted.
Land and asset losses due to unwillingness to
                                                        Adopt suitable cross-sections and adjustment of median
make alignment adjustments
                                                        width
                                                        Design retaining/toe walls to limit extent of widening and
                                                        property loss
                                                        Compensation to land department to develop same amount
Basic agricultural land
                                                        of land in other area
LAND
Call for excessive/extreme unprotected                  At all critical slopes along the roadsides, turfing will be
embankment slopes, due to attempts at cost              done to protect the slopes
                                                        Existing licensed quarries that are already in operation
Use of unlicensed quarries and borrow areas,
                                                        have been recommended.
due to inadequate knowledge of regulations
                                                        Non-productive, barren lands, raised lands, riverbeds,
and/or misguided need to reduce costs per tonne
                                                        waste lands have been recommended for borrowing earth
of material extracted
                                                        materials; no productive land will be used for this purpose.
EARTHWORKS AND RELATED
Sloppy     earthworks      calculations   leaving
excessive fill or cut, requiring disposal plans         Optimization of cut fill estimations, considering needs for
and/or additional extraction leading to long-term       fill, haul distances, and general cut-fill balancing
i
                                                        Develop aggregate, borrow and any materials sites within
Poor design and planning of quarry, aggregate
                                                        the local, state and national regulations set out for that
and other borrow areas, including development
                                                        purpose. Avoid long access roads
of access roads to these sites
                                                        No borrowing from river-beds.




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WATER
                                                         Maintain the existing course of the river, streams and
Constriction, blockage or chronic degradation
                                                         canals if at all possible.
due to inadequate road and crossing structure
                                                         Protect perennial community pond near highways by
design
                                                         staying more than 20m away or with 2m high embankment
                                                         Through local consultation, establish water availability and
                                                         a water use plan, including trucking water from outside the
                                                         work area, in semi-desert areas such as Rajasthan and
Inadequate preparation for construction water
                                                         central Andhra Pradesh
needs, knowledge of local water balance and
                                                         Investigate and implement if possible groundwater
depletion of local resources
                                                         recharging through water harvesting check dams, tanks
                                                         (underground tanks created at the end of a natural / man-
                                                         made slope) or to be trucked).
                                                         The natural drains will be suitably modified so that highway
Storm and surface water drainage obstructed
                                                         does not obstruct these cross drainage.
due to engineering errors e.g., wrong ‘model-
                                                         Provision of adequate size and number of drainage
storm’ used
                                                         structures.
FLORA AND FAUNA
                                                         Trees saved by expanding the road on one side in
                                                         uninhabited stretches and symmetrical in constricted
Excessive and uncontrolled loss of roadside tree
                                                         places.
plantations during construction
                                                         Trees will be removed with prior approval. Compensatory
                                                         afforestation will be adopted.
                                                         Signage an/ or fencing
Restriction or      obstruction of      wildlife
                                                         Keeping roadsides free of animal food sources, e.g grasses
movement/migration by enlarging road or placing
                                                         and fodder
of new component such as a bypass
                                                         Provision for animal underpass at important travel routes
                                                         Signage and fencing
Trespassing onto Reserve Forest
                                                         Posting of range of fines
ENVIRONMENTAL QUALITY
                                                         Design roads to reduce restrictions to a minimum and
                                                         provide adequate passing and bypasses to urban
Failure to note sensitive air quality sites such as
                                                         congestion.
hospitals and schools and reroute alignment
                                                         Plan for tree plantation on both sides of the road and in the
around or away from these. Unmanaged Air
                                                         median as soon as possible. These areas will be planted
Quality issues
                                                         with shrubs of suitable species to reduce the air pollutant
                                                         concentrations and to attenuate noise.
                                                         Pinpoint bottlenecks and relieve congestion in built-up
                                                         stretches through improved design.
                                                         Improve design of junctions/intersections
Same problem as above for identified noise-              Segregate of slow and fast moving traffic.
sensitive locations- Unmanaged Noise levels              Include noise berms and plantations in design around
                                                         sensitive sites or barriers
                                                         Make design for noise barrier or double glaze windows
                                                         based on EIA recommendation
CULTURAL HERITAGE
                                                         Based on public input and engineering limits, alignment will
Unnecessary loss of cultural properties due to
                                                         be suitably routed to avoid/minimize impact to cultural
inappropriate road planning or failure to properly
                                                         property
identify cultural heritage and archaeological
                                                         Stop engineering work immediately and inform the cultural
sites.
                                                         heritage management agency.
BUILT ENVIRONMENT
Deficient planning for early relocation of utilities     Map out location of utilities and the extent of relocation
such as electrical power and water services prior        needed. Prepare a timetable for relocation and
to ground breaking                                       reconnection suited to the Project-Affected-Households
                                                         Consult with local officials to establish an adequate detour
Insufficient provisions for alternated access and
                                                         plan and sufficient access to areas cut off or constrained by
detours for affected households and businesses
                                                         the work




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    Common Construction Period Mitigation Measures

    (lxxvi) Mitigative measures during the construction period (Table 6) are nearly all linked to
             contractors failing to carry out routine ‘good housekeeping’ tasks as part of the daily work
             routine. For example, not implementing a dust control program, permitting work camps to be
             located in areas where contamination or surface waters is possible, inspecting earthworks
             inconsistently, leading to waste dumping and environmental damaged.
    (lxxvii) Proper control over borrow and aggregate extraction activities are often associated with the
             chronic long term impacts. Contracts often claim that they cannot be held responsible for
             development and operation of sites owned by others, thus these operations remain un-
             monitored. This is avoided by specifically including a contract clause requiring contractors to
             use only legally licensed operations.

             Table 6 : Common Mitigative Measures Applied During the Construction Period

 IMPACT                                              COMMON MITIGATIVE MEASURE
 SOIL
                                                              Revegetate barren areas, cuts and work areas as soon
 Soil Erosion due to inadequate and immediate
                                                       after the work has been completed as is practical.
 application of stabilization techniques
                                                              Follow the recommendation proposed in SEPP.
                                                              No earth borrowed from within the ROW.
 Illegal and excessive borrowing of Earth                     Non-productive, barren lands, raised lands, riverbeds,
                                                       waste lands first choice as borrow areas
                                                              Construction vehicles and equipment will be maintained
                                                       and refueled at protected refueling stations.
 Contamination of soil from fuel and lubricants
                                                              Fuel storage and refueling sites located away from
                                                       drainage channels and important water bodies.
 Contamination of soil from           construction            Contaminated or haz. waste such as bitumen waste to
 wastes and quarry materials                           be dumped in selected & approved locations.
                                                              Identify work area boundaries with contractor (s) and
 Soil   compaction     due    to    excessive
                                                       describe system approvals for extensions and fines for
 enlargement of construction work area
                                                       violations
 WATER
 Damage to surface water resources used by                   Degraded water sources/ponds etc. will be rehabilitated
 local population, e.g. drainage of ponds and          and compensated for, immediately; assuming road
 tanks.                                                improvement planning and design not effective
 Construction materials blocking drainage and                All structures and channels must be kept clear of debris
 run-off                                               and immediately rebuilt if needed
 Contamination of construction site surface                  Drainage from all sites to be channeled to discharge via
 runoff leading to pollution of receiving water        percolation area and for sensitive sites through a settling pond
 bodies such as rivers, lakes and ponds                with a 24 hr retention period.
                                                             Waste petroleum products will be collected, stored and
 Contamination    of   water   from     fuel   and
                                                       disposed off at the approved sites as per Hazardous Waste
 lubricants
                                                       Management and Handling Rules, 2002.
                                                             The construction camps will be located away from the
                                                       habitation.
                                                             The sewage system for such camps will be properly
 Inadequate treatment of sanitation and waste          designed and built so that no water pollution takes place.
 disposal in construction camps                        Such facilities will be decommissioned at end of construction
                                                       period.
                                                             Solid waste (garbage) system must also be operational,
                                                       including provision for recycling and reuse.




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 AIR
                                                                  All vehicles, equipment and machinery used for
 Emission from construction vehicles and
                                                     construction will be regularly maintained to ensure that the
 machinery
                                                     pollution emission levels conform to the standards.
                                                                  All precautions to reduce the level of dust
                                                     emissions from the hot mix plants, crushers and batching
 Construction related dust, from movement of         plants will be taken up.
 vehicles at site and to sites from borrow and                    Water will be sprayed in the lime/cement and earth
 quarry sites, etc.                                  mixing sites, asphalt mixing site and temporary service and
                                                     access roads.
                                                                  Vehicles delivering material will be covered.
 NOISE
                                                              The plants and equipment used for construction will
                                                     strictly conform to noise standards.
 Inadequate prevention of construction-related                Noise standards for industrial enterprises will be strictly
 noise from vehicles, asphalt plants, crushing       enforced to protect construction workers from severe noise
 and batch plants and equipment                      impacts.
                                                              Working hours/activities will be adjusted to avoid low-
                                                     noise times
                                                      People living near such blasting sites get prior information of
 Noise from blasting operations                      operational hours.
                                                      Blasting will not be undertaken in night hours.
 FLORA

                                                         Compensatory planting
 Loss or damage to vegetation
                                                         Do not cut giant trees and ‘community’ trees

 Failure to properly manage/store topsoil,               Cleary defined topsoil storage and handling in contract
 leading to degraded and substandard site            specs. and follow up with regular inspection/monitoring and
 reclamation and revegetation                        reporting.
 FAUNA
 Loss, damage or disruption to fauna due to                Construction workers will be directed not to disrupt or
 unnecessary and un-approved increases in            damage the fauna.
 construction work areas, soil compaction and              State rules for hunting (Wildlife Protection) will be
 failure to control construction camp activities     adhered and rules for bird catching (Wildlife Protection) will be
 related to hunting and gathering of forest          followed.
 products, etc.                                            Off-limits fencing and signage where necessary
 SAFETY AND ACCIDENT RISKS
                                                           Construction safety to be followed as defined in FIDC
 Accident risks from construction activities
                                                     contract specifications
                                                           Temporary access will be built at interchange of highway
 Loss of access / Traffic jam                        and other roads and temporary diversions will be provided
                                                     wherever necessary with proper drainage facilities.
 Health issues related to adequate drainage
 and prevention of stagnant water which can
                                                          Health provisions to be supplied as defined in FIDIC
 act as mosquito breeding areas, leading to
                                                     clauses.
 such diseases as malaria, yellow fever and
 encephalitis
 Inadequate sanitation and first aid, leading to             Adequate drainage, sanitation and waste disposal
 disease outbreaks and loss of productivity          facilities will be provided at work places
 and even life.                                              First Aid station to be provided to workers
 CULTURAL PROPERTIES
 Unaware        or    unconcerned      contractors         Relocation of cultural properties
 damaging, destroying or looting religious                 If archaeological relics found, stop work and contact
 /cultural/historical (archaeological) properties    state Archaeology Departments for advice




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    (lxxviii) Consistent compliance monitoring, reporting and follow-up actions if non-compliance is
              detected are the three most important mitigative measures after the preparation of an
              Environmental Management Plan.

    Common Operating Period Mitigation Measures

    (lxxix) Mitigation during the operational period of a project (Table 7) most often has to do with
            installation of noise attenuation measures associated with traffic noise, the maintenance of
            roadside vegetation barriers designed to attenuate some of the emissions as well as the
            noise. Secondly measures that either failed or were not carried out, such as slope
            stabilization, are implemented/repaired at this time, usually at the considerable additional cost
            increase 4.

            Table 7 : Common Operating Period Impacts and Associated Mitigation Measures

IMPACT                                                       COMMON MITIGTIVE MEASURE
HAZ. AND TOXIC MATERIALS
                                                               The spills at the accident sites will be cleared immediately
Contamination    from   spills   due   to   traffic   and
                                                               The left over spills will be scrapped to small lined confined pits
accidents
                                                                nearby, within the ROW
                                                               Hazardous substances certificate/permits issued by
Accidents involving hazardous materials without                 transportation department namely permit license, driving
adequate spill contingency planning and clean up                license and guarding license will be required.
                                                               State spill management plan to be followed
AIR AND NOISE
                                                               Roadside tree plantation will be maintained
                                                               Vehicular emission control policy including engineering
Increased traffic, poor road geometry, insufficient             improvements. fuel conversions encouraged
vehicle emission control, leading to air pollution in          Mandatory annual vehicle inspection for heavy vehicles
previously unaffected areas                                     encouraged
                                                               Regular maintenance of the road will be done to ensure good
                                                                surface conditions
Failure to implement noise abatement measures
                                                               Undertake remedial planting and repair
such as plantings, berm construction, noise barrier
                                                               Reduce use of horns
construction, noise abatement awareness program
                                                               Monitor noise pollution and effectiveness of noise attenuation
(incl. use of horns) and relocation of sensitive
                                                                measures
receptors such as hospitals and schools, leading to
                                                               Public awareness program will be launched.
chronic Noise pollution
STORMWATER RUNOFF
                                                               The drainage system will be periodically cleaned
Unmanaged stormwater drainage from road                        Undertake remedial drainage system repair including settling
surfaces drained directly into water courses leading            basins or interceptor runoff means(indirect route to receiving
to chronic contamination                                        water)
                                                               Water quality will be monitored as per the monitoring plan
FLORA AND FAUNA
Failure of contractor to prepare a mitigation
                                                               Withhold final payment until such report is submitted.
completion report for hand-over to road operator
                                                               Efforts will be made for proper maintenance of planted trees,
lack of maintenance of        revegetation and tree
                                                                shrubs and grasses will be done to maintain greenery and
planting, leading to steady degradation
                                                                aesthetics through community contracts
Inadequate treatment of roadside vegetation leading            The replanting scheme to be repaired and strictly monitored
to excessive wildlife losses, i.e. roadside grazing of          for first 3 years
large herbivores, etc.
Inadequate Fencing and access controls along the                Examine value of fencing and appropriateness in relation to
roadways and at rest areas                                      species involved—consult experts and take action


4
  Retrofitting a mitigative action that was not applied during the project’s construction period, at the start of the
operating period is usually more complex and involved some repairs before the mitigative action can be implemented.




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     The Environmental Management Plan

     (lxxx)    The environmental management plan consists of minimal explanatory text and a detailed
               matrix table (see model below) summarizing all mitigation and monitoring actions, in relation
               to who is to implement the measures, a timetable and at what cost. To be useful, the
               requirement to implement and enforce the EMP should be cross referenced in contract
               documents and even attached to loan contract documentation as a loan covenant signed
               between the government and the ADB. Further, it can be added as a contract clause in the
               construction contract documentation.

 Environ-        Mitigation       Ref No.    Location      Time        Implementing        Non re-      Re-
  mental       Measures taken     (FIDIC                  frame        Organization/      occuring    occuring
  Impact       or to be taken    Clause or                              Supervising         costs      costs
                                 Related)                              Organization


Pre-Construction Period

Construction Period

Operation Period




Project Alternatives

     (lxxxi) Alternatives should be compared in terms of their potential environmental impacts, capital
               recurrent costs, suitability under local conditions, and institutional, training and monitoring
               requirements. For each alternative, the environmental costs and benefits should be quantified
               to the extent possible, economic values should be attached where feasible, and the basis for
               the selected alternative should be stated.
     (lxxxii) Examining alternative means of carrying out a project involves answering the following three
               questions: (i) what are the alternatives?, (ii) what are the environmental impacts associated
               with each alternative?, and (iii) what is the rationale for selecting the preferred alternative?
               Most of the road development projects in China have several alternative routes. The EIA
               report must describe the process taken to select the most appropriate route based on a set of
               pre-determined criteria. The consideration of alternatives and the selection criteria used to
               identify the preferred alternatives must include environmental factors, such as land taken,
               tree cutting, natural reserves, cultural heritages, drinking water source and etc.
     (lxxxiii) The presented alternatives have to be based on the integrated feasibility study of the
               ecological, technical and social aspects. It is necessary to compare the alternatives’
               environmental and social-economical impact with each other and environmental situation and
               to determine whether the project minimizes the environmental impact over all other
               alternatives and is within acceptable environmental impact limits.
     (lxxxiv) In most cases, environmental impacts “with” and “without” project alternatives should be
               examined. The EIA report should describe how the project fits into the national, provincial or
               county master development plan, as well as the sector strategy. Public concerns should be
               fully considered. This context helps justify the project and demonstrates the requirements that
               may constrain the alternatives that are feasible or permitted.
     (lxxxv) The analysis of impacts and alternatives should result in a recommendation for an optimal
               investment strategy, in terms of environmental and social costs and benefits.




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Cultural Heritage

   (lxxxvi) ADB requires that the impacts on cultural heritage be assessed as part of the overall
              environmental assessment of a project. Cultural heritage is a record of humanity’s
              relationship to the world, past achievements and discoveries. Cultural heritage refers to sites,
              structures, and remains of archaeological, historical, religious, cultural, or aesthetic value.
   (lxxxvii) Cultural heritage is legally protected in PRC through the Cultural Heritage Protection Law.
              Generally, the cultural heritages are classified in three protection levels: national, provincial
              and county level in China. The State Cultural Heritage Administration is responsible for the
              management of the national level cultural heritages protection units, while the
              provincial/county governments are responsible for the management of the provincial/county
              level cultural heritage protection units.
   (lxxxviii) The entire famous archeological, cultural and historical district placement has to be
              determined. It is necessary to study those places along the alignment where the existence of
              the archeological remains. In case the project road encroach into or affect any kind of cultural
              heritage, the project executive agency should entrust qualified cultural relic research institute
              to conduct cultural heritage investigation to see the necessity of further excavation. If yes, the
              excavation should be conducted before the clearance of ROW. Permission should also be
              obtained from the cultural heritage management department before construction of the road.
   (lxxxix) The EIA should propose cultural heritage protection plan and the cost, as well as the training
              program on cultural relic protection to the contractors.


Environmentally Responsible Procurement (ERP)

   Using the Environmental Assessment Process to Strength ERP

   (xc)     ERP and environmental assessment are two aspects of an environmental management
            system. Integration of ERP into environmental assessment processes is a practical way to
            move ERP analysis to an earlier stage of the project cycle. By incorporating requirements to
            conduct ERP analyses into the terms of reference for the environmental assessment team,
            opportunities for ERP can be identified and integrated into project design and
            implementation. The environmental assessment team should work with project design
            engineers, implementing agencies, and ADB project staff to develop recommendation on
            ERP specifications. These ERP considerations should be incorporated in the EMPs for
            specific projects. To ensure that ERP recommendations are carried forward into loan
            documents, they should be included in environmental assessment reporting requirements.

   Using ERP to Strengthen the Implementation of EMPs

   (xci)    ERP can be used to strengthen the implementation of EMPs. The principles of
            environmentally responsible procurement can be extended to include management of and
            payment for contracts. Procurement documents can be structured to ensure that contractors
            carry out the environmental mitigation and monitoring programs outlined in the EMP. In
            particular, payments to contractors should be directly linked to the successful implementation
            of the EMP. Contractor performance guarantees should be subject to collection for failure to
            implement the EMP.

   List of Ineligible Items

   (xcii)   ADB uses a list of ineligible items to prohibit the purchase of specific goods and services
            under program loans. This list includes such goods as radioactive materials and hazardous
            substances. While these lists are essentially “negative lists”, in that they prescribe “what not
            to buy”, in expanded and enhanced form they would, provide guidance on environmentally
            inappropriate products”. In any case a list of ineligible items should be included as standard
            requirements for all ADB loans.


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Monitoring

   Compliance and Effects Monitoring

   (xciii) Monitoring is essential to gain experience from the mitigation effort. Monitoring commonly
           involves undertaking compliance checks to confirm that the EA, contractors and consultants
           have undertaken the mitigative action as defined in an EMP, or other mitigation documents.
           A second form of monitoring is called effects monitoring and defines how well the mitigative
           action actually dealt with the impact. This includes defining whether the predicted impact
           actually occurred.
   (xciv) Monitoring is undertaken at regular intervals during the construction period and some of the
           operating period of the project. Considerations of available budget and the need to make
           certain that actions were taken will shape the scope of the monitoring program. Full EIAs and
           well prepared IEEs contain a monitoring plan, providing a starting point for implementing all
           monitoring actions.
   (xcv) The simplest approach to monitoring is to use the EMP matrix as the basis of a monitoring
           checklist: deleting some of the columns and adding new ones referring to the compliance
           dates, further actions and responsibility. An actual monitoring form used on an ADB road
           project and prepared directly from an EMP is included as Annex 4 of this guideline.
   (xcvi) Construction period monitoring, conducted by the IA or its consultants usually focuses on
           construction period air quality and noise, surface water contamination, erosion control and
           work camp waste management. Where special considerations exist, such as roads passing
           through reserve forest tracts, monitoring of compliance with work in these areas is included.
           Non-compliance needs to be reported when it is detected in order to permit the IA to take
           immediate action. Monitors or inspectors should file monitoring compliance checklists with
           their regular monitoring reports.
   (xcvii) Monitoring during the operating period is usually completed by the IA, the road operator or a
           contracted specialist consultant. This monitoring need to focus only on those impacts which
           might effect sensitive areas and lead to potentially serious impacts. Common monitoring
           schedules require annual or semi annual monitoring sessions for the first three years of
           operation. However, it is far better to design the monitoring around the life history of affected
           fauna and flora, such that a number of key lifecycle events are repeatedly captured in the
           monitoring. Thus the monitoring could be every twice a year or every two years and repeated
           three times.

   Independent Monitoring

   (xcviii) PRC encourages independent monitoring in transport sector. The EIA report is required to
            propose an environmental monitoring plan including independent monitoring. The
            independent monitoring plan should include tasks, staff requirement, equipment requirement,
            working schedule, reporting system and etc.
   (xcix) The EIA should also describe is there any NGOs in the project area, if yes, how can the
            NGOs involve in the environmental monitoring. Local people should be also encouraged to
            the monitoring. The environmental action plan should be available to these people and the
            way how the environmental complaint reach to the local EPBs should be notified to them.

   EPB Monitoring Capacity

   (c)       In most of the case, SEPA and provincial Environmental Protection Bureaus (EPBs) are
             responsible for review and environmental documents such as EIA report, environmental
             chapter of the feasibility report as well as the environmental protection design, guiding the
             environmental monitoring, and conducting post-project evaluation. While the municipal/county
             level EPBs in the project area are directly responsible for implementation of environmental
             performance monitoring to ensure the environmental mitigation measures are fully taken.




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26 of 53                                            Improved Guidelines for Road Network Feasibility Study
                                                   Section F: Environmental Impact Assessment Guidelines

   (ci)      Under the leadership of Provincial/Municipal EPBs, the local monitoring stations are
             responsible for environmental pollution monitoring and ambient environment quality
             monitoring.
   (cii)     The EIA report should consult with the local EPBs and Environmental Monitoring Stations to
             assess the EPB monitoring capacity in terms of staff, technical skills, equipments, working
             load and etc., and propose environmental capacity building plan if necessary.

Estimating and Presenting Costs Involved

   (ciii)    All ADB EA reports require that a cost estimate for the mitigation and monitoring be included
             in the documentation and be added to the total project costs. A project-specific cost estimate
             should be tabular, comprised of three tables a) for mitigation and b) for monitoring c)
             summary providing totals in RMB and USD. Table types a) and b) should be subdivided into
             two general costing areas, non-reoccurring and reoccurring costs with further subdivisions
             into the three project cycle stages (preconstruction, construction and operation).
   (civ)     When preparing the costing tables, it is useful to include the ‘environmental mitigation’ costs
             which appear as standard engineering items such as dust suppression, road watering tankers
             and work camp waste management, since this way the true cost of environmental mitigation
             is identified while the costs allocated specifically to the environmental component can be
             identified separately.
   (cv)      Economic analysis should be quantitative analysis. For the quantitative analysis, total project
             cost and benefits, environmental cost and benefits, and environmental protection cost are
             required. The main environmental benefits will be benefits for greening and benefit for vehicle
             emission reduction.

Technical Capacity Requirements

   (cvi)     The overall effectiveness of the EA process is heavily dependent on the capacity of the road
             agency’s management personnel to take appropriate action throughout the process.
             Environmental specialists can be helpful in ensuring that EA makes appropriate
             environmental decisions during the early planning of a project, thus avoiding unnecessary
             and often long studies, delaying the project and adding to the costs.
   (cvii)    To ensure all the environmental mitigation measures are taken, it is necessary for the EIA
             team to check the local government capacity. It is necessary to have an environmental
             management department in the provincial level Communication Department and at lease one
             environmental person in the Municipal/County level department. The EPBs should also be
             consulted to see whether their staff, equipment, budget, working load, skills are enough. If no,
             capacity building plan should be proposed. The plan might recommend training of existing
             staff, hiring of additional staff, reorganization of units or agencies, or redefinition of roles and
             responsibilities. The Environmental Monitoring Station should have the qualification
             certification issued by SEPA.
   (cviii)   The environment consultants should have conducted more than three similar highway
             projects, and it is better for the consultants to have ADB project experience. For domestic
             environment experts, they should be certificated by SEPA as EIA experts.

Public Consultation and Information Disclosure

   (cix)     ADB requires public consultation in the environmental assessment process. For category A
             and B projects, the Borrower must consult with groups affected by the proposed project and
             local nongovernment organizations. The consultation should be carried out as early as
             possible in the project cycle so that views of affected groups are taken into account in the
             design of the project and its environment mitigation measures. Such consultation will also
             take place during project implementation to identify and help address environmental issues
             that arise.




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27 of 53                                          Improved Guidelines for Road Network Feasibility Study
                                                 Section F: Environmental Impact Assessment Guidelines

   (cx)      For Category A projects, the Borrower will ensure that consultation will take place at least
             twice: (i) once during the early stages of EIA field work; and (ii) once when the draft EIA
             report is available, and prior to loan appraisal by ADB. The public consultation process needs
             to be described in the EIA and SEIA reports. The ADB Environmental Guidelines describe the
             best practice for consulting stakeholders and providing access to information.
   (cxi)     In cases where the environmental assessment report for a project has been completed prior
             to ADB involvement in that project, ADB will review the public consultation and disclosure
             carried out by the project sponsor during and after preparation of the environmental
             assessment report. If necessary, ADB and the EA should then agree on a supplemental
             public consultation and disclosure program.
   (cxii)    Environmental assessment reports for ADB projects are required to be made accessible to
             interested parties and the general public. The SIEE and SEIA reports are required to be
             circulated worldwide, through the depository library system and on the ADB web site. The full
             EIA or IEE reports are also made available to interested parties on request. ADB's “120 day
             rule” requires that the SEIA, or in the case of category B projects that are deemed
             environmentally sensitive, the SIEE, is available to the general public at least 120 days
             before

Conclusions

   (cxiii)   The EIA report should present the conclusions of the study including: (i) gains which justify
             project implementation; (ii) summary of the major environmental impacts and explanation of
             how the adverse effects could be minimized or offset, and compensated to make these
             impacts acceptable; (iii) summary of the environmental cost-benefit analysis; (iv) explanation
             of use of any irreplaceable resources; and (v) provisions for follow-up surveillance and
             monitoring. (iv) environmental feasibility. Simple visual presentations of the type and
             magnitude of the impacts may aid the decision-maker.




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28 of 53                                 Improved Guidelines for Road Network Feasibility Study
                                        Section F: Environmental Impact Assessment Guidelines

Appendix A: Types of Environmental Impact




                  CPCS Transcom – Louis Berger International Consortium
6. Types of
   environmental
   impact


                       HOW TO USE THIS CHAPTER IN THE CONTEXT OF EA AND ROAD PLANNING

 Stage in road planning                           EA activity                          Involvement in addition to EA team
           (A)                                       (B)                                              (C)

                               Screening
                               Scoping                                                Proponent
Concept                        Consultation                                           Key regulatory agency
Pre-feasibility                Determining baseline conditions                        Other government agencies
Feasibility                    Selection of preferred solution                        NGOs
Engineering design             Assessment of alternative designs/methods              Research groups
Construction                   Development of environmental management plan           Public/community organizations
Operation & maintenance        Effects and compliance monitoring                      Advisory experts
                               Evaluation
                               Reporting


Shaded area = (A) Stages of EA covered in this chapter; (B) focus of this chapter; and (C) primary target readers.



KEY QUESTIONS ADDRESSED:

?   How are environmental impacts classified?



?   What are the basic criteria for defining the severity of environmental
    impacts?


?   What is an indirect impact?



?   What is a cumulative effect?
                                                               TYPES OF ENVIRONMENTAL IMPACT




6.1    IMPACT TYPES                                  ventory, assess, and control than indirect im-
Environmental impacts arising from road de-          pacts, since the cause-effect relationship is
velopment projects fall into three categories:       usually obvious.

i) direct impacts;                                   6.1.2   Indirect impacts
ii) indirect impacts; and
                                                     Indirect impacts (also known as secondary, ter-
iii) cumulative impacts.
                                                     tiary, and chain impacts) are usually linked
These three groups can be further broken             closely with the project, and may have more
down according to their nature, into                 profound consequences on the environment
                                                     than direct impacts. Indirect impacts are more
•   positive and negative impacts;
                                                     difficult to measure, but can ultimately be
•   random and predictable impacts;
                                                     more important. Over time they can affect lar-
•   local and widespread impacts;
                                                     ger geographical areas of the environment than
•   temporary and permanent impacts; and             anticipated. Examples include degradation of
•   short- and long-term impacts.                    surface water quality by the erosion of land
                                                     cleared as a result of a new road (Figure 6.1),
6.1.1    Direct impacts                              and urban growth near a new road. Another
Direct impacts are caused by the road itself—        common indirect impact associated with new
that is to say, by road building processes such      roads is increased deforestation of an area,
as land consumption, removal of vegetation,          stemming from easier (more profitable) trans-
and severance of farmland. For example, the          portation of logs to market, or the influx of set-
removal of gravel material from a borrow pit,        tlers. In areas where wild game is plentiful,
for use in surfacing the road, is an obvious di-     such as Africa, new roads often lead to the
rect impact of road construction. In this case,      rapid depletion of animals due to poaching.
the land area in which the pit site is located has        Environmental impacts should be consid-
been directly affected by activities associated      ered not only as they pertain to road rights-of-
with the road project.                               way, but also to sites associated with the road
     Direct impacts are generally easier to in-      project, which include deposit and borrow

             FIGURE 6.1
             INDIRECT IMPACTS: THE EXAMPLE OF LAND CLEARING




1
ROADS AND THE ENVIRONMENT: A HANDBOOK




sites, materials treatment areas, quarries, access          indirect impacts appear (see Box 6.1 ).
roads, and facilities provided for project work-
ers. These “off-ROW” areas are often where

BOX 6.1
EXAMPLE OF POTENTIAL DIRECT AND INDIRECT ENVIRONMENTAL IMPACTS
Environmental impact study for the Guinea-Conakry Road Project (96 km road construction in a mangrove
swamp and rice-growing area). NOTE: Direct Impact (D); Indirect Impact (I).

Soils
Compaction of alluvial soils by earth moving equipment (D)
Erosion and modification of surface relief of borrow zones (275,000 square meters) (D)
Loss of topsoil (165 hectares) in the borrow areas (D)
Over-exploitation of agricultural soils due to future development in a zone sensitive to erosion (I)
Irreversible salinization and acidification of mangrove swamp soils (I)

Water
Modification of flowing surface water in borrow areas, causing erosion and siltation (I)
Modification of water flows during construction (stream diversion, modification of water table recharging) (D)
Sedimentation near crossings of presently cultivated flood plain (D)
Modification of surface and subterranean water flows and resulting drying or flooding (I)
Pollution of water tables by equipment lubricants, fuels, and detergents (D)
Displacement of salinity threshold into the mangrove swamp zone: effects on fauna and flora, impregnation of
soils with tannin, erosion of coastline (I)

Flora
260 hectares of deforestation and undergrowth clearance (D)
Destruction of plantings (2,800 oil palms, 1,600 various trees) (D)
Reduction of cornice forests around swamps, from modified water flow and increased agricultural use (I)
Disappearance of reproduction and food zones for species of fish, aquatic and migratory birds (I)
Reduction of mangrove plant population (habitat for fauna, purifying microfauna, firewood) (D)
Erosion of the coastline (I)
Increase in farming activity, reduction of fallow times, impoverishment of the soils (I)

Fauna
Reduction in mangrove fauna (crabs, shrimps, egrets, herons, kingfishers, spoonbills, ibises, terns, and other
species) (I)
Increase in poaching during the works period, and subsequent hunting and fishing (I)
Increase in tourism (Tristao Island, the center for many migratory birds) (I)

People
Loss of farms and homes (1,300 square meters) (D)
Reduction in agricultural production per surface unit (over-exploitation, impregnation of soils with tannin) (I)
Increase in consumption of wood, particularly from the mangrove swamps: erosion (I)
Reduction in fishing potential (I)
Increase in land tenure conflicts, and conflicts between farmers and nomad cattle breeders (I)
Increase in speed of propagation of endemic disease (I)

Positive Impacts
Providing all weather road link for coastal population with major urban markets, institutions and goods
Sale of dried fish products (90 percent of national production) increased through quicker transport and access
More effective sale of rice from industrial growers (3,500 hectares) and small-scale growers
Creation of jobs
Improved access to medical help
Source: SETRA



                                                                                                                   2
                                                             TYPES OF ENVIRONMENTAL IMPACT




EA practitioners should predict and evaluate       taking a holistic approach to impact assess-
the significance of possible indirect effects by   ment. It is especially important that any syner-
                                                   getic relationships between impacts be closely
                                                   examined, since indirect effects frequently lead
                                                   to synergetic impacts.
                                                       It is with indirect effects that impact link-
                                                   ages between the natural and social environ-
                                                   ment often take place. For example, the
                                                   appropriation of land to build a road may dis-
                                                   place farmers, and may interfere with their
                                                   cropping pattern and force them to use another
                                                   water supply. This change could result in a de-
                                                   pletion of a groundwater aquifer, intensifica-
                                                   tion of new land clearing, erosion, water runoff
                                                   contamination with added fertilizers and pesti-
                                                   cides, etc.
                                                       Good documentation of the assumptions
                                                   used in the determination of impacts is critical.
                                                   Margins of error and the quality of basic in-
                                                   formation must be indicated when assessing
                                                   any impacts that are difficult to quantify.

                                                   6.1.3   Cumulative impacts
                                                   The process of cumulative environmental
                                                   change can arise from any of the four following
                                                   types of events:
                                                   i) single large events, i.e. a large project;
                                                   ii) multiple interrelated events, i.e. road pro-
                                                        jects within a region;
                                                   iii) catastrophic sudden events, i.e. a major
                                                        landslide into a river system; and
                                                   iv) incremental, widespread, slow change,
                                                        such as a poorly designed culvert or drain-
                                                        age system along a long road extending
                                                        through a watershed.
                                                   These can generate additive, multiplicative or
                                                   synergetic effects, which can then result in
                                                   damage to the function of one or several eco-
                                                   systems (such as the impairment of the water
                                                   regulation and filtering capacity of a wetland
                                                   system by construction of a road across it), or
                                                   the structure of an ecosystem (such as place-
                                                   ment of a new road through a forest, leading to
                                                   in-migration or land clearing which results in
                                                   severe structural loss to the forest) (see Figure
                                                   6.2).
                                                        A cumulative impact, in the context of road
                                                   development, might be the de-vegetation and
                                                   eventual erosion of a roadside pullout. The sce-
                                                   nario might unfold as follows: a road cutting


3
ROADS AND THE ENVIRONMENT: A HANDBOOK




through a mountain range offers some spec-                    time. Many road-related examples deal with
tacular views, and in the absence of designated               roads which need to traverse watersheds in
rest areas, motorists stop indiscriminately.                  which surface and subsurface water movement
Roadside vegetation is damaged by vehicle                     is complex. One striking example is the high-
and foot traffic, and the soil is left unprotected.           way constructed across a mangrove forest
Subsequent rainfall causes erosion and siltation              (100 ha in size) along the Caribbean coast. It
of nearby watercourses. The vegetation never                  was not fully understood at the planning stage
has enough time to recover (because of high                   to what extent the fresh and sea water needed
traffic volume on the road), and the problem is               to mix in order for the healthy forest to survive
exacerbated over time.                                        on both sides of the road. As a result, most of
     As this example illustrates, cumulative ef-              the forest has died off;2 on one side the waters
fects assessment (CEA) is a complex process                   were not saline enough, and on the other there
which requires extensive knowledge of eco-                    was not enough mixing with fresh water. The
logical principles and ecosystem response                     effect on the ecosystem was devastating and
mechanisms.                                                   the impact on the local population which used
     The success of a CEA relies heavily on the               the mangrove forest area was severe. Almost
framework that is set up before the assessment                certainly, no sign of this impact appeared until
is undertaken. The evaluation can begin once                  two to three years after the road was built. A
                                                              second example could develop in situations
•    temporal and spatial boundaries for the as-
                                                              where roads bisect wildlife migration routes,
     sessment have been defined;
                                                              which can inflict stress on the migratory popu-
•    measurable variables have been chosen;
                                                              lation for many generations, or even perma-
     and
                                                              nently, and cause instability, increased
•    the relationships between the chosen vari-               mortality, and possibly catastrophic decline.
     ables have been established.
The cumulative effects of the proposed road
project on the local environment can then be
evaluated by
•    compiling a list of activities that are part of
     the proposed project;
•    estimating the changes that will occur in
     the measurable variables as a result of
     these activities; and
•    estimating the effects that the changes in
     each of the measurable variables will have
     within the area defined by the spatial and
     temporal boundaries.
CEA is an effective impact assessment tool, but
it must be carried out properly in order to pro-
duce reliable results. 1

6.1.4     Ecosystem function impacts
Technically a subset or variant of cumulative
impacts, ecosystem function impacts, which
disable or destabilize whole ecosystems, are
the most dangerous and often the least likely to
manifest themselves over a short period of

1 Those planning to undertake CEA as part of an EA are

urged to read Preston and Bedford (1988) as well as Spaling   2 Once weakened, the mangrove trees, some over 20 m

and Smit (1994) and (1993).                                   high, were destroyed by disease, etc.


                                                                                                               4
                                                               TYPES OF ENVIRONMENTAL IMPACT




    FIGURE 6.2
    CUMULATIVE IMPACTS: THE EXAMPLE OF A STREAM




     Finally, there is the linkage with the social   species better adapted to the newly created
environment. Having had their traditional            “grazing-forest” ecosystem. The invaded forest
grazing areas cut off by new or re-constructed       ecosystem is stressed further, users of the eco-
roads with raised-horizontal alignments, cattle      system are affected, and a chain reaction pro-
farmers may be forced to move their herds            gresses throughout the system, feeding back to
onto forest or park lands, which results in a        the social environment in the form of commu-
rapid depletion of the understory (grasses,          nity disturbances and hardships.
etc.). This destroys the forest edge ecotone and
the basic forest ecosystem, as well as threaten-     6.1.5   Positive and negative impacts
ing the inhabitants with possible invasion from




5
ROADS AND THE ENVIRONMENT: A HANDBOOK




The emphasis of this handbook is primarily on               rious consequences for the environment. For
avoiding and mitigating negative impacts,                   example, in a country with a large, densely set-
which should be a high priority in all road pro-            tled population, it is reasonable to predict that
jects. Environmental impacts sometimes have                 the construction of a road through unsettled
both positive and negative effects; some im-                areas will result in population migration,
pacts can positively affect some people and                 whereas incidents such as accidental pollution,
negatively affect others in the same environ-               fire, or spillage of toxic products are, by nature,
ment. For example, rechannelling streams as                 unpredictable. Well understood and predict-
part of road construction might improve drain-              able impacts can usually be mitigated with re-
age for a roadside farmer, but wreak havoc on               medial measures, and therefore call for minor
the livelihood of others who depend on the                  EA requirements such as an IEE and environ-
aquatic species disturbed by the rechannelling.             mental summary report, as opposed to a full
      Positive outcomes that occur as a result of           EA.
project completion typically include improved
access, reduced travel time and cost, and per-              6.1.7    Local and widespread impacts
haps reductions in accidents or noise. Other                Local impacts include effects in the immediate
positive outcomes can be designed into a pro-               vicinity of a road, such as destruction of a
ject, for example, improving water retention for            building, or restricted access to a farm. Wide-
local use, flood control, or providing better fa-           spread impacts can occur many kilometers
cilities for pedestrians and bicycles (see Box              from the project. These impacts are often
6.2). In some cases, positive impacts can ap-               linked to indirect effects that arise over the
pear without having been initially foreseen by              medium- or long-term existence of the project
the road agency, such as the use of borrow sites            and include the influx of settlers, deforestation,
to water livestock in dry areas.                            and the development of new industries. While
                                                            the focus of most road EAs has been on rela-
6.1.6    Random and predictable impacts                     tively narrow corridors measuring 100-500m in
In the preliminary analysis (Chapter 3) of an               width, impacts can extend much further, par-
environmental impact assessment, it is useful               ticularly in new road projects which traverse
to distinguish between assured or highly prob-              isolated areas. Major habitat conversion can
able impacts, and more random or unpredict-                 take place up to 10 km on either side of the
able ones which have a low probability of                   cleared ROW. Road planners and EA practitio-
occurring but which nevertheless may have se-               ners should be aware of this possibility and

BOX 6.2
ENHANCING WATER MANAGEMENT THROUGH INNOVATIVE ROAD DESIGN
In dry climates, millions of liters of rainwater are lost through conventional road drainage designs, which treat
runoff as a nuisance, not as a resource to be captured. In a survey conducted by the World Bank, it was estab-
lished that simple small-scale water retention structures along large and small rural roads could make a signifi-
cant difference to water supplies during the dry periods. The study identified three basic types of structures along
roads that, with minor modifications, could become retention areas, with water useable for agricultural purposes.
These were:
i) standard stormwater catchbasins—deepened and with controlled drainage added;
ii) various forms of check-dams or fords, to slow drainage, creating ponding; and
iii) various other damming devices, such as sluice gates, raised box culverts and dams.
A study resulted in the preparation of a general design manual to assist engineers in planning for the inclusion of
such structural modifications during the design of the roadway.

An important cautionary note: such retention structures should be avoided in high use corridors, since the runoff
water may be contaminated with heavy metals and oil. Such waters are not potable by people or animals, can con-
taminate leafy vegetables, and, if stored in deep basins, can contaminate groundwater aquifers.

Source: Lantran, 1995.


                                                                                                                6
                                                                        TYPES OF ENVIRONMENTAL IMPACT




address it explicitly in the project scoping ac-            lifetime”. Therefore the destruction of a man-
tivity (see Section 3.2 and Chapter 10).                    grove forest would be permanent.

6.1.8    Temporary and permanent impacts                    6.1.9    Short- and long-term impacts
Temporary impacts are those whose occur-                    Short-term impacts are those which appear
rence is not lasting, and which will eventually             during or shortly after construction; long-term
reverse themselves, the affected system having              impacts may arise during construction, but
returned to its previous state. An example of               many of their consequences appear during the
this type of impact might be the trampling of               operational phase, and may last for decades.
roadside vegetation during resurfacing; it re-
covers after a few weeks, to the point where no             6.2      IMPACT SEVERITY
change from the original state is observable.               To qualify environmental impacts by the type
Permanent impacts are those which are irre-                 of effect they have on the environment is not
versible—the affected system will not return to             sufficient. Impacts must also be categorized ac-
its previous state on a human timescale. It is              cording to their seriousness. The most damag-
important to note that “permanent” from the                 ing and longest lasting impacts will obviously
viewpoint of EA, is defined as “within one’s                be the first to be avoided or mitigated (see Sec-
                                                            tion 4.3.2 for further details).


6.3      REFERENCES AND BIBLIOGRAPHY
Gilpin, A. 1986. Environmental Planning: A Condensed Encyclopedia. Park Ridge, NJ: Noyes Publications.
Lane, P.A., R.R. Wallace, R.J. Johnson and D. Bernard. 1988. A Reference Guide to Cumulative Effects Assessment in
    Canada, Volume 1. Hull, Canada: Canadian Environmental Assessment Research Council.
Lantran, Jean Marie. 1995. Water Management and Road Design in the Sahel Region. World Bank Transportation,
    Water and Urban Development Department; Infrastructure Note RD-20. Washington, DC: World Bank.
Preston, E.M. and B.L. Bedford. 1988. “Evaluating Cumulative Effects on Wetland Functions: A Conceptual
    Overview and Generic Framework”. Environmental Management. 12:5:565-583.
Spaling, H. and B. Smit. 1994. “Classification and Evaluation of Methods for Cumulative Effects Assessment”.
    Paper presented at the Conference on Cumulative Effects in Canada: From Concept to Practice. April 13-14,
    Calgary, Canada: Canadian Societies of Professional Biologists.
Spaling, H. and B. Smit. 1993. “Cumulative Environmental Change: Conceptual Frameworks, Evaluation Ap-
    proaches, and Institutional Perspectives.” Environmental Management, 17:5:587-600.
World Bank. 1991. EA Sourcebook, Volume II. “Rural Roads” (pg. 113), and “Roads and Highways” (pg. 168).
   Washington, DC: World Bank, Environment Department.




7
         36 of 53                                                                                             Improved Guidelines for Road Network Feasibility Study
                                                                                                             Section F: Environmental Impact Assessment Guidelines

         Appendix B: Example of Environmental Management Action Plan

 Environmental                                                                     References in Law &                                                        Responsibility
                                       Mitigation Measures                                                       Location            Time Frame        Implementation  Supervision
  Impact/Issue                                                                     Contract Document
1. Pre-construction Phase
a.                   As required by law a project SEPP 5has been prepared.         Legal requirement         Throughout the         Before             Design Institutes     GPCD
                                                                                                                                                             6
Soil      Erosion    Mitigation measures should be incorporated into                                         project corridor       construction       GPCD and              GEECH    and
Protection &         engineering design. However, the No. A23 (K128+200)                                                            starts             GEECH7                Gansu WRB8.
Conservation         borrow pit selected in SEPP should be combined with No.
                     A22 (K122+500) and the No. B5 (K127), No. B6 (K135)
                     spoil sites should be reselected because these sites are
                     located in Kongtong Mountain Nature Reserve and is not
                     allowed based on PRC Nature Reserve Protection
                     Regulation. No. A26 (K214+400) borrow pit is close to the
                     No. 25 (K213+800) borrow pit, suggest combine these two
                     pits.

b.                   Before any ground is broken, selected contractors must        Legal requirement         ROW9 width of          Before             Contractors      in   GEECH and
Removal of           prepare a vegetation replanting layout on a topographic                                 about 50m              groundbreakin      consultation with     GCSO10
Trees                map of the site (e.g., detailed design basemap), showing                                                       g            for   county     forestry
                     replanting areas, type of plantings and maintenance                                                            construction       department and
                     program to be undertaken. Use the SEPP as a guide.                                                                                local
                                                                                                                                                       communities
c.                   Information dissemination and community consultation          RP11    and     project   The ROW as             Before             County-level          GPCD       and
Taking of Land       about the entitlements based on the Land Admin. Law will      requirement               defined in the RP      construction       communication         GEECH
and Property         occur. All relocation and resettlement activities must be                                                      starts on any      department
.                    reasonably completed before the construction activity                                                          contract.
                     starts in any road subsection. Compensation will be given
                     as per the RP.
d.                   All utilities will be relocated with prior approval of the    Contract specifications   Refer        utility   Before             County                GPCD and
Utility Relocation   concerned agencies. Relocation will be reasonably                                       relocation             construction       communications        GEECH
                     complete                                                                                drawings               starts             department and
                     before construction starts on any section of project roads.                                                                       contractors




         5
           SEPP: Soil Erosion Prevention Plan
         6
           GPCD: Gansu Communication Department
         7
           GEECH: Gansu Expressway Engineering Construction Headquarters
         8
           WRB: Water Resources Bureau
         9
           ROW: right of way
         10
            GCSO: General Construction Supervision Office
         11
            RP: Resettlement Plan


                                                           CPCS Transcom – Louis Berger International Consortium
         37 of 53                                                                                              Improved Guidelines for Road Network Feasibility Study
                                                                                                              Section F: Environmental Impact Assessment Guidelines

 Environmental                                                                      References in Law &                                                 Responsibility
                                        Mitigation Measures                                                       Location        Time Frame     Implementation  Supervision
  Impact/Issue                                                                      Contract Document
e.                   All community utilities such as community water source         RP requirements           Any water          Before          County             GPCD and
Removal of           pipes will be replaced at appropriate and suitable                                       source within      construction    communications     GEECH and
Community            locations. Replacements will be reasonably complete                                      construction       starts          department and     local
Utilities            before construction starts.                                                              zone                               contractors        communities

f.                   The relocation of any canals will be discussed and agreed      Contract terms and        Any irrigation     Before          County             GPCD and
Relocation of        with village committees and county WRBs prior to               conditions and RP         system within      construction    communications     GEECH and
Irrigation           commencement of the works.                                                               construction       starts and      dept. and          local
Systems                                                                                                       zone or affected   before          contractors        communication
                                                                                                              by the             irrigation                         s and county
                                                                                                              construction       season starts                      WRB

g.                   To avoid loss of access to farmers ’ fields, neighbors, and    Contract specifications   Along the entire   Detailed        GEECH and          GEECH
Access               the local villages, pedestrian underpasses need to be                                    alignment          design stage    GPCD In
Restriction          included in the design with exact locations based on                                                                        cooperation with
                     discussion with local village committees.                                                                                   contractor

2. Construction Phase
a. Soil
i.                   (a) Cut and fill, according to detailed design.                Design requirement        Throughout         During          Contractor.        CCE12, GEC13
Disposal of          (b)Waste will be dumped in pre-selected areas, approved        and Contract Specs        Project Corridor   Construction                       assisted by the
Earthworks           by the construction chief engineer (CCE). Residual spoils                                at all                                                WRB.
(excavation)         will be used, according to the SEPP                                                      construction
Materials                                                                                                     sites
ii.                  (a) In agricultural areas, or in any other productive soil     Soil Erosion Protection   Throughout the     During          Contractor         CSE14,
Loss of Topsoil      areas, the topsoil from all areas to be permanently            Law, No.49-’91 and        project corridor   construction                       GEECH,
,                    covered will be stripped to a specified depth (based on        Reg. No. 120 of PRC       and all borrow                                        with
                     prov. agriculture bureau specs.) and stored in stockpiles of                             and spoil areas                                       assistance of
                     height not exceeding 2 m. Maintenance of the stockpiles                                                                                        GWRB15,
                                                                                                                                                                          16
                     will be in accordance with the SEPP or according to                                                                                            GEPB
                     Agriculture Bureau requirements.
                     (b) Topsoil will be returned to cover the disturbed area and
                     cut slopes. Any excess distributed to local communities,
                     free of charge.
                     (c) Topsoil to be minimally handled, avoiding loss.

         12
            CCE: construction chief engineer
         13
            GEC: Gansu Expressway Company
         14
            CSE: contract supervising engineer
         15
            GWRB: Gansu Water Resources Bureau
         16
            GEPB: Gansu Environmental Protection Bureau


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                                                                                                                 Section F: Environmental Impact Assessment Guidelines

 Environmental                                                                         References in Law &                                                  Responsibility
                                           Mitigation Measures                                                       Location          Time Frame    Implementation  Supervision
  Impact/Issue                                                                         Contract Document
iii.                   (a) Construction vehicles, machinery, and equipment will        Contract specifications   Throughout           During         Contractor     CCE of GEC
Compaction of          move or be stationed in designated areas.                                                 project corridor     construction                  with assistance
Soil                   (b)Ensure that the method of stockpiling materials, use of      Contract specifications   and all                                            from WRB
                       plants, and siting of temporary buildings or structures do                                temporarily used
                       not adversely affect the stability of excavation or fills.                                areas; at all cut
                                                                                                                 and fill sites
v.                     (a) Borrowing within the RoW is prohibited-under this           Contract specifications   Throughout           During         Contractor     GEC with
Haphazard              contract.                                                       PRC Law: 49-‘91 &         project corridor     Construction                  assistance
Borrowing of           (b) The Contractor will facilitate inspection of all borrow     Reg. No. 120              and all                                            from GEPB
Rock                   areas by GEPB and WRB and satisfy GEC within GPCD                                         construction                                       and WRB
                       of compliance with SEPP and MEMP17.                                                       sites

vi.                    Borrow pits will be redeveloped as per details found in the     FIDIC19: 13.1, 26.1       All borrow areas     During         Contractor     GEECH and
                                                      18
Degradation of         site operations plans, the SEIA and within the SEPP.            PRC Law: 49- ‘91 &                             construction                  GWRB
Borrow Areas           Spoils may be dumped into the abandoned borrow areas            Reg. No. 120
                       but must be rehabilitated and returned to productive
                       farmland

vii.                   (a) On road embankment slopes, slopes of all cuts, etc.,        Design requirement        Within               During         Contractor     GEC with
Soil Erosion and       shrubs and grass will be planted according to the SEPP.                                   construction         construction                  assistance
Siltation              (b) To control soil erosion and siltation stemming from         PRC Law: 49-‘91 &         corridor and all                                   from GEPB
                       earthwork operations, the following well-known measures         Reg. No. 120              construction                                       and WRB
                       should be applied: berms, dikes, sediment basins, fiber                                   sites; all borrow
                       mats, mulches, grasses, and slope drains.                                                 and spoil areas;
                                                                                                                 service roads
                                                                                                                 and equipment
                                                                                                                 storage sites, etc
viii.                  (a) Vehicle, machinery, and equipment maintenance and           Contract terms and        Throughout           During         Contractor     GEC in
Contamination of       refuelling will be carried out such that spilled materials do   conditions                project corridors,   construction                  cooperation
Soil by Fuel and       not seep into the soil.                                                                   all access roads,                                  with GEPB
Lubricants             (b) Fuel storage and refilling areas will be located at least   FIDIC: 19.1(c)            sites temporarily
                       300 m from drainage structures and important water                                        acquired, and all
                       bodies.                                                                                   borrow areas
                       (c) Fuel storage and refuelling areas, if located in
                       agricultural land or areas supporting vegetation, will have
                       topsoil stripped, stockpiled, and returned after completion
                       of refuelling activities.

        17
             MEMP: mitigation measures execution and monitoring plan
        18
             SEIA: summary environmental impact assessment
        19
             FIDIC: Federation Internationale Des Ingenieurs Counseils


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    Environmental                                                                         References in Law &                                                   Responsibility
                                             Mitigation Measures                                                    Location          Time Frame         Implementation  Supervision
     Impact/Issue                                                                         Contract Document
                         (d) Oil traps will be provided for service areas, toll station
                         areas, parking areas, and within drainage systems for
                         bridges.

b. Water Quality
i.                       No. 4 well of Jingchuan water sources and any other              RP requirement        Throughout           Whenever            Contractor            GEC and
Loss of Water            source of water (potable or otherwise) for the community                               project corridors,   encountered                               county WRB
Sources                  such as wells and ponds, incidentally lost, will be replaced                           all access roads,    during
                         immediately                                                                            sites temporarily    construction
                                                                                                                acquired, and all
                                                                                                                borrow areas
ii.                      Prevent temporary or permanent flooding of the site or any       FIDIC: 19.1(c)        Project corridors,   During              Contractor            GEC
Flooding                 adjacent area                                                    FIDIC: 29.1 and       access roads,        construction
                                                                                          contract terms and    sites temporarily    and the
                                                                                          conditions            acquired, and        defects liability
                                                                                          PRC Regulation JTG    borrow areas         period
                                                                                          B01-2003
iii.                     Revegetation will be done immediately after construction         FIDIC: 19.1(c)        Entire project       During              Construction          GEECH
Revegetation to          ceases at a site and no tree or vegetation other than those      PRC Law: 49-‘91 &     corridors, all       construction        contractor and        assisted by
Prevent Erosion          approved for removal by the Gansu Forestry Bureau will           Reg. No. 120          access roads &                           local unit retained   county forestry
and Siltation            be cut.                                                                                temporary sites                          to do replanting      bureau

iv.                      (a) In sections along watercourses, and areas close to           FIDIC: 19.1(c)        Throughout           During              Contractor,           GEECH with
Alteration of            cross-drainage channels, earth, stone, or any other                                    project corridors,   construction        working with the      assistance
Drainage                 construction materials will be properly disposed of so as to                           all access roads,                        CSE                   from GEPB, or
                         not block the flow/drainage of water.                                                  sites temporarily                                              county EPB
.                        (b) All necessary measures will be taken to prevent                                    acquired and all
                         construction activities from impeding cross-drainage at                                borrow areas.
                         rivers, streams, water canals, and existing irrigation and
                         drainage systems.
                         (c) Temporary irrigation and drainage systems should be
                         built before the permanent drainage systems are blocked
                         or removed as part of construction.

v.                       (a) All measures will be taken to prevent contamination by       FIDIC: 19.1 (c)       Throughout           During              Contractor with       GEC with
Contamination of         the wastewater produced in construction, as directed by                                project corridors,   construction        monitoring            assistance
Water from               GEC.                                                                                   access roads,                            assistance from       from GEPB
                                                                                                                                                                   20
Construction             (b) Construction work close to the streams or water bodies                             sites temporarily                        the GEMS
Wastes                   will be avoided during rainy periods.                                                  acquired, and

           20
                GEMS: Gansu Environmental Monitoring Station


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                                                                                                       Section F: Environmental Impact Assessment Guidelines

 Environmental                                                                   References in Law &                                                Responsibility
                                     Mitigation Measures                                                   Location          Time Frame      Implementation  Supervision
  Impact/Issue                                                                   Contract Document
                   (c) The discharge standards promulgated under PRC             FIDIC: 26.1           cut/borrow sites
                   regulation GB: 8978-1996 will be strictly adhered to.         GB: 8978-1996

vi.                Waste petrochemicals must be collected, stored, and           FIDIC: 19.1 (c)       Throughout           During           Contractor        GEC with
Contamination      taken to approved disposal sites in compliance with PRC       FIDIC: 26.1           project corridors    construction                       assistance
from Petro-        guidelines                                                                          and at                                                  from GEPB
chemicals                                                                                              associated
                                                                                                       worksites
vii.               (a) Laborers’ camps will be at least 200 m away from the      FIDIC: 19.1(c)        All construction     During           Contractor        GEECH/GPCD
Sanitation and     nearest habitation and waterbody.                                                   workers camps        establishment,                     GPCD and
Waste Disposal     (b) The sewage system for the construction laborers’                                                     operation, and                     GEPB.
in Construction    camps will be properly designed, built, and operated so as                                               dismantling of
Camps              not to pollute ground or adjacent water                                                                  such camps
                   bodies/watercourses. Garbage bins will be provided in the
                   camps and regularly
                   emptied and the garbage disposed of in a hygienic
                   manner, in accordance with local norms, CSE and               FIDIC: 26.1
                   GEECH.
                   (c) Arrangements for proper disposal of excreta must be
                   made by the contractor, and should include, where
                   possible, pick up and disposal by local people. All such
                   arrangements will be directed by the GEECH and the
                   CSE.

c. Air Quality
i.                 (a) All vehicles delivering granular and/or fine materials    FIDIC 19.1(c)         Throughout           During           Contractor with   GEECH/GPCD
Generation of      (especially fly ash) to the site will be covered (watered                           project corridors,   construction     monitoring        with assistance
Dust               down for fly ash) to avoid spillage and dust emissions.                             all access roads,                     assistance from   from GEPB
                   (b) Material storage sites should be 300 m from residential                         sites temporarily                     GEMS              and county
                   areas and covered with canvas or sprayed with water if                              acquired, and                                           departments
                   possible and feasible.                                                              borrow areas
                   (c) Water or a dust suppressant material will be used to
                   control fugitive dust on the construction sites and major
                   feeder roads twice a day during dry season.
                   (d) All expressways and roads used by vehicles of the
                   contractor or any sub-contractor or supplier will be kept
                   clean and clear of all dust, mud, or other extraneous
                   materials dropped by their vehicles. Such cleaning will be
                   immediate and complete.
                   (e) All earthwork will be protected to minimize dust
                   generation.


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                                                                                                              Section F: Environmental Impact Assessment Guidelines

 Environmental                                                                         References in Law &                                                 Responsibility
                                            Mitigation Measures                                                   Location          Time Frame      Implementation  Supervision
  Impact/Issue                                                                         Contract Document

ii.                     (a) The discharge standards under the Environment              PRC - GB: 14761.7-93   Throughout           During           Contractor, via   GEECH/GPCD
Emission from           Protection Law, 1989, will be strictly adhered to. All         and FIDIC contract     project corridors,   construction     GEMS and the      GPCD with
Construction            vehicles, equipment, and machinery used for construction       special conditions     all access roads,                     GPCD’s EPO21      assistance
Vehicles,               will be regularly maintained and correctly operated                                   sites temporarily                                       from GEPB
Equipment, and          (including the use of dust filters or hoods) to ensure that                           acquired, and
Machinery               pollution emission levels comply with PRC-GB: 14761.7-                                borrow areas
                        93                                                             PRC-GB:4915-85
                        (b) Bitumen mixing site should be at downwind of
                        environmental sensitive areas and more than 300m away
                        c) Bitumen smog should comply with PRC-GB:4915-85
                        (Class I).

d. Noise Pollution
i.                      (a) The equipment and machinery used in construction will      FIDIC: 19.1 (c)        Throughout           During           Contractor with   GEC/GPCD
Noise from              strictly conform to PRC and local noise standards, i.e. GB                            project corridor,    construction     monitoring        with assistance
Vehicles, Plants,       12523-90.                                                                             access roads,                         assistance from   from GEPB
and Equipment           (b) At construction sites within 150 m of the nearest          PRC-GB: 12523-90       sites temporarily                     GEMS
                        habitation, noisy construction work will be stopped            FIDIC: 26.1 FIDIC:     acquired, and
                        between 2200 hours and 0600 hours                              19.1 (c) FIDIC: 45.1   borrow areas

ii.                     (a) Blasting will be carried out only with permission of the                          All blasting sites   During           Contractor with   GEC/GPCD
Noise from              CCE of GEC, using a preestablished schedule.                                                               preparation,     monitoring        with assistance
Blasting                (b) Blasting mats will be used to reduce noise levels when                                                 operation, and   assistance from   from GEPB
Operations              blasting is carried out.                                                                                   closure of       GEMS
                                                                                                                                   such sites
iii.                    (a) Planting 20m width trees at sections designated in the     EIA, SEIA and          At nominated         Before closure   Contractor with   GEC/GPCD
Erection of Noise       EIA.                                                           GB3096-93              sites as             of the           monitoring        with assistance
Attenuation             (b) Set up noise barrier at the 37 places designated in the                           designated in the    construction     assistance from   from GEPB
Structures              EIA.                                                                                  EIA                  sites            GEMS
                        (c) Relocation of Xigou primary school and Huacha
                        primary school.
                        (d) Set up double glazing of windows for the 40
                        households designated in the EIA
                        (e) All such mitigation measures will be inspected by GEC
                        and GEPB.
e. Impact on Flora
i.                 (a) All works will be carried out in such a fashion that            Design requirement,    Entire project       During           Contractor.       GEC/GPCD
Loss of or         damage or disruption to flora is minimized.                         SEIA                   site                 construction     GEC & Forestry    with assistance

         21
              EPO: Environmental Protection Office


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 Environmental                                                                       References in Law &                                               Responsibility
                                       Mitigation Measures                                                       Location        Time Frame     Implementation  Supervision
  Impact/Issue                                                                       Contract Document
Damage to           (b) It is prohibited to borrow soil from or dump spoil outside                                                              Department        from the
Vegetation          those sites nominated in the construction design and                                                                                          Forestry
                    SEPP.                                                                                                                                         Department

ii.                Permits will be obtained for the construction in the              PRC Nature Reserve      Entire project     During          Contractor.       GEC/GPCD
Impacts to         experimental zone of Kongtong Mountain Provincial                 Protection Regulation   site, except for   construction    GEC & Forestry    with assistance
Kongtong           Nature Reserve.                                                                           (c)                (permits:       Department        from the
Mountain Nature                                                                                                                 before                            Forestry
Reserve                                                                                                                         construction)                     Department
f. Impact on Fauna
Loss of or         (a) Construction workers will be instructed to protect            FIDIC: 19.1(c)          Entire             During          Contractor        CSE of
Damage, to         natural resources, fauna, and flora; no harvesting of wild                                project area       construction                      GEECH and
Fauna              foods will be possible unless by permit from the CSE of                                                                                        Forestry
                   GEECH and the County EPB.                                                                                                                      Bureau
                   (b) No construction activity is allowed at night time in
                   Kongtong Mountain Area.

g. Diseases and trafficking
Transmittable      Health clinics in construction sites; HIV/STD and human           Social Development      Throughout the     During          Contractor,       GEC/GPCD,
diseases and       trafficking prevention posters and pamphlets at                   Action Plan             project areas      construction    Epidemic          Civil Affairs
human trafficking construction sites and service centers; HIV/STD and                                                                           Disease Control   Bureau
                   human trafficking education campaign through popular                                                                         Center
                   media channels (radio and TV)

h. Disruption to user
Loss of Access     At all times, the contractor will provide safe and convenient     As specified in RP      All project        During          Contractor        GEC/GPCD
                   passage for vehicles, pedestrians, and livestock to and           documents               corridor and       construction                      Transport &
                   from side roads, and property access connecting the               FIDIC: 29.1             construction                                         Security
                   project road.                                                                             sites                                                Department
                   At the time students go to/leave school, one person should
                   be specially assigned for the safety of the students.

i. Inappropriate Use of Hazardous and Toxic materials
Use of             Herbicide or other toxic chemicals will be used strictly in       PRC Regulation:         Entire             During          Contractor        GEC/GPCD
Hazardous and      accordance with the manufacturer’s instructions and               JT3130-88               construction       construction                      with assistance
Toxic Materials    according to PRC Regulations                                                              corridor                                             from GEPB

j. Impact on Cultural Relics
Cultural heritage  (a) Training the construction workers on the cultural relic       PRC Cultural heritage   Entire             During          Contractor        GEC/GPCD
                   preotetion.                                                       protection regulation   construction       construction                      with assistance
                   (b) If any cultural relics sites are found, work will stop                                corridor                                             from Gansu


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 Environmental                                                                     References in Law &                                               Responsibility
                                      Mitigation Measures                                                       Location       Time Frame     Implementation  Supervision
  Impact/Issue                                                                     Contract Document
                   immediately until authorities have a chance to evaluate the                                                                                  cultural bureau
                   significance and nature of such findings.
3. Operation Phase
a.                 Storm water should not be drained directly into the             PRC standard GB:         All project       Beginning and   GHHAB             GHHAB with
Maintenance and    tributary rivers classified as class II but must pass through   8978-1996                corridors,        end of each     Maintenance       input from
Management of      detention ponds, or as a minimum grassed pervious runoff                                 especially the    rainy season    Department        county EPBs
Storm Water        paths. All storm drains must be periodically cleared to                                  urban stretches
                   maintain storm water flow.

b.                 (a) The EIA indicated dust levels (TSP) will increase above     EIA                      All project       Starting        GHHAB with        GHHAB,
Atmospheric        PRC standards. Frequent road maintenance and                                             corridors         immediately     county forestry   GHHAB in
Pollution          enforcement of fugitive dust restrictions will help to reduce   GB 14761.1- 14761.7-                       After           units             cooperation
.                  this.                                                           93                                         completion of                     with police
                   (b) New afforestation projects adjacent to the project road                                                construction    GEMS and police   and GPCD
                   and in the surrounding ROW will be encouraged.
                   (c) The testing target of 5% of all vehicles on the road
                   each year will be attempted. Tests will be for CO, NO2,
                   and TSP10. Vehicles failing the test will have licenses
                   confiscated and compliance dates set
                   (d)Vehicle emission inspection program will be
                   encouraged by GEECH and the existing vehicle
                   certification system enhanced
                   (e) Boilers in service areas should powered by oil or gas

c.                 (a) Noise pollution will be monitored.                          EIA- noise section and   Refer noise       Throughout      GEC with          GEC
Noise Pollution    (b) “NO HORN PERMITTED” signs will be set at road               environmental            pollution         operational     monitoring by
                   sections near schools.                                          monitoring plan          monitoring        phase           GEMS
                   (c) At access points to the expressway, random weighing          SEIA                    program
                   of vehicles will be done
                   (d) No new school, hospital and residential building is
                   allowed to be built within 200m of the expressway.
                   (e) Noise attention measures should be taken if the
                   monitor results show that the noise exceed standard by 5
                   dB(A).
d.                 (a) GEC will enforce compliance with PRC regulations.           PRC Regulation:          Entire project                                      GPCD, GEPB,
Accidents          (b) In case of an accident involving hazardous substances,      JT3130-88                corridor and                                        & police
involving the      the relevant emergency procedures team (as specified in         Local Transp. Reg. On    surroundings
Handling and       the expressway operating process) will be called. A spill-      Haz. Subst.
Transport of       management plan will be prepared.                               SEIA
Hazardous &
Toxic Materials


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                                                                                                            Section F: Environmental Impact Assessment Guidelines

 Environmental                                                                    References in Law &                                                Responsibility
                                       Mitigation Measures                                                      Location         Time Frame   Implementation  Supervision
  Impact/Issue                                                                    Contract Document
e.                  Road runoff is forbidden to be drained to the water head      Project EIA               Water source        Throughout    GHHAB                GPCD and
Water Pollution     (Dongxi Reservoir, Pingliang Yangzizhai, Jingchuan). It                                 protection areas    operation                          GEPB
from road runoff    must be channelled to downstream of these water bodies                                                      phase
.                   after sedimentation.

f.                  (a) Domestic sewage at toll stations will be treated by the   Project EIA and SEIA      All service areas   Throughout    Rest area and toll   GHHAB
Water Pollution     use of septic tanks, and then used as fertilizer                                        and toll gates      operation     station operators
from Sewage         (b) Solid waste (garbage) will be sorted using                                                              phase
and Garbage         multicompartment collection bins, and recycled and reused
.                   wherever possible3, via contract with maintenance
                    company.
                    (c) Oil traps will be maintained and monitored regularly.
                    (d) Sewage from Kongtong Mountain service station and
                    waterwater from car washing station, gas station must
                    collected and treated to meet class II standard (GB: 8978-
                    1996) and then be channelled to downstream of the water
                    source protection area of Jing River.
                    (e) Sewage from other service areas must treated to meet
                    GB 8978-1996 class II standard and then used for
                    greening or irrigation.
                    (f) Sewage from Toll gates, management office and
                    maintenance areas must treated by septic tank and
                    oxidation pond and then used for irrigation.

g. Cumulative       (a) Through the implementation of Gansu Kongtong              SEIA                      Kongtong            Throughout    GEPB, NEPB           SEPA
impacts to nature   Mountain National Key Scenery Spot Infrastructure                                       Mountain            operation
reserves            Construction Project, environmental management of the                                   Provincial Nature   phase
                    nature reserve will be secured.                                                         Reserve,
                    (b) Ningxia and Gansu EPBs should exchange EIAs of                                      Liupanshan
                    Ningxia Expressway and Gansu Expressway, and keep                                       Mountain
                    close relationship each other for appropriate                                           National Nature
                    environmental management during construction and                                        Reserve
                    operation of these expressways, as well as during
                    implementation of EIA for the connecting road.

h. Industrial       (a) Total pollution emission quantity control will be         Chinese Total Pollution   Entire project      Throughout    GEPB,                SEPA
development to      implemented.                                                  Emission Control          corridor and        operation     Proponents of
be induced by the   (b) EIA will be prepared and approved for individual          Policy, and other         surroundings        phase         individual
Project             industry projects.                                            environmental laws                                          industry projects
                                                                                  and regulations in the
                                                                                  PRC such as EIA law


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 Environmental                                                               References in Law &                                            Responsibility
                                    Mitigation Measures                                                Location         Time Frame   Implementation  Supervision
  Impact/Issue                                                               Contract Document
4. Environmental Monitoring
Environmental     Monitoring will be conducted based on relevant             Project EIA           Monitoring          Throughout    GEMS, plus data   GEC with
Monitoring        specifications or standards issued by SEPA and using the   and SEIA              stations selected   operational   technician        technical input
                  schedule set out in EIA, SEIA, SEPP, EMAP, and MEMP                              as defined and      period as     trainees from     from GEPB
                                                                                                   verified in field   defined       GEC




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                                        Section F: Environmental Impact Assessment Guidelines



Appendix C: Example Summary of Soil Erosion Prevention Plan




                  CPCS Transcom – Louis Berger International Consortium
        APPENDIX C EXAMPLE SUMMARY OF SOIL EROSION PREVENTION PLAN


1.     General
1.1    Land Acquisition
Land to be permanently taken for the Luoding Expressway is about 1230.8 ha, including 1106.27
ha for the main route and 124.53 ha for the connecting road. Land to be temporarily taken is
about 325.4ha in area, and is spread throughout the 5 counties and districts along the route in
Jingchuan County, Kongtong District, Jingning County, Huining County and Anding District.


1.2    Balance between Cut and Fill Work
According to the Project feasibility study report, a balance between cutting and filling needs to be
achieved in the construction of the road. This is because there are many steep slopes and deep
ditches along the route. Note that the total excavation volume is 22.3 million m3 and the total cut
volume 31.1 million m3, it is hard to achieve totally balance between cutting and filling. Based on
the field survey, 47 borrow pits and 33 spoil sites are selected to meet the need of 17.8 million
m3 of earth borrow, 5.6 million m3 waste earth and 3.35 million m3 of waste stone disposal.

2.     Current Erosion Status
                                Intensity of Erosion in Project Area
                                           Average erosion      Erosion intensity in
County/District         Stake No.                                                        Category
                                          intensity (t/km2.a)   Project area (t/km2.a
Jingchuan         K0+000-K92+407         2000-10000             1000-2000               Light
Kongtong          K92+407-K136+550       2000-10000             1000-2500               Light
Jingning          K202+560-K256+850      3000-8000              2500-3500               Medium
Huining           K256+850-K309+500      2000-6000              2000-3000               Medium
Anding            K309+500-K334+000      2000-7000              2000-4000               Medium


3.     Predicted Erosion Amount
During construction, the Project will impact on virgin land surface altogether 2017.4ha, total
erosion amount 8.75 million ton. The current average soil erosion intensity is 2402t/km2·a. It will
increase to 13,055t/km2.a at early construction phase, 4,670 t/km2.a at late construction stage,
and 2950 t/km2.a during operation of the Project.


4.     Mitigation Measures
4.1    Outline of Mitigation Measures
The ErPP Report assesses the soil erosion protection function of the major engineering works,
including subgrade works, pavement works and tunnel works. The supplemental actions are
proposed for borrow pits, spoil sites and temporary land use. The design maps for different kinds
of slop protection, borrow site protection and spoil site protection are provided. See the flow
chart.




                                                 1
4.2    Spoil Sites Protection
Mitigation measures should be taken for the selected 33 spoil sites along the alignment
including:
       (i)     Before dump spoil, construct retain dam/wall to prevent waste from eroding into
               downstream;
       (ii)    Construct intercepting ditch and chute to prevent outside water from entering spoil
               sites, the water should be channelled to existing drainage or water pond.
       (iii)   Spoil should be piled in steps with each step less than 8 m high and a 2-meter
               wide platform will be built at each step, the slope slop shall be less than 1:1.5;
       (iv)    Cover the spoil field with topsoil and plant trees/grasses or rehabilitate it to
               farmland.
4.3    Borrow Pits Protection
Mitigation measures for the selected 47 borrow places will be taken including:
       (i)     Before earth borrow, construct intercepting ditch and chute to reduce eroding of
               borrow pits by rainfall;
       (ii)    After earth borrow, grading the side slope and set 2m width platform every 8m
               high, construct drainage ditch at inner side of the platform and connect it with
               chute and natural ditches.
       (iii)   Flat the earth surface, plant trees/grasses or rehabilitate to farmland.


4.3    Engineering Actions
       (1)     Side slope protection: including retaining wall, landslide prevention, shot concrete
               and anchorianch, side slope planting
       (2)     Drainage system: including intercepting ditch, drainage ditch, chute and culverts.
               The drainage system will induce the runoff to the culverts and rivers thus protect
               the subgrade from erosion.
       (3)     Bridge and Tunnel: sand sediment pool, retaining wall, drainage
       (4)     Interchange area: level up of landform


4.4    Planting Actions
Planting will be conducted at the roadside, central separator, side slope, interchange area, service
area, management area, borrow sites and spoil sites where not suitable for agricultural need. The
Soil Erosion Prevention Report suggests the tree and grass species and analyse the water
demand.


4.5    Temporary Land Rehabilitation
Drainage system for the temporary construction road, construction sites should be set. After
construction of the project, the temporary land should be rehabilitated.




                                                  2
                                                                                                 Retain wall

                                                                                                   Shoot concrete and anchor




                                                                    Slide slope
                            Main route protection area
                               (Main project design)                                                 Debrisflowprotection

                                                                                                   Greeningprotection                            Mesh pattern greening



                                                                                            Subgrade
                                                                                            drainage                      Drainage ditch, retain ditch, chute               Water
                                                                    drainage




                                                                                             Road run-off                      Drainage, water catch pipe, side ditch, chute
                                                                        Bridge
                                                                        /tunnel




                                                                                               Bridge sand sediment pool, tunnel entrance/exit drainage, retain wall
                             Affiliated design area
                              (Main project design)



                                                                       Interchange




                                                                                                                                              Water pond                  Planting
                                                                                            Level landform off




                                                                              Toll station maintaining/service area                             Level landform off, planting

                                                                                                                           Drainage, revegetation                       water pond
Erosion control




                                                                                     Construction road


                                                                                  Construction sites, material yard                   Drainage, rehablilitation
                             Temporary facilities protection area
                               (Mainly for newly added Erpp)




                                                                                                                                     Retain ditch、send-sinking pool、drainage
                                                                                                              Before
                                                                           Borrow pits
                                                                                                              During                      Temporary spoil retain, lessen steepness,
                                                                                                                                                         packway
                                                                                                                  After
                                                                                                                                                 Field cleaning up, revegetation

                                                                                                         Before                    Drainage          Retain ditch, chute, drainage ditch

                                                                                                                                 Spoil Retain       Gravity retain wall
                                                                          Spoil sites
                                                                                                         During                    Construction organization
                                                                                                                                       &management                           water pond
                  (newly added ErPP)
                    Other protection




                                                                                                             After                         Field cleaning up, revegetation




                                                                                  Direct impact area*                               Put forward measures in principle




                                                                                                                  3
5        Shedule
                    Implementation Schedule of Mitigation Measures
                                                                             Later      stage            of Initial  stage   of
                                        Initial stage of construction
Mitigation measures                                                          construction                   operation

                                        2005         2006        2007        2008       2009       2010-2012
Subgrade engineering
Road surface engineering

Mitigation measures implementation schedule
                 Drainage


                 Side slope
Civil work
                 Protection
                 Temporary
                 protection
                 Planting

                     Retain dam

                     Retain wall

                  Intercepting ditch
Spoil sites
                 Packway drainage


                 Earth up spoil
                 sites
                 Planting

                 Intercepting ditch


                 Packway drainage


                 Lesson slop
Borrow pits      steepness
                 Earth up borrow
                 pits
                 Enclosure
                 protection

                 Planting

                 Earth up
Temporary
construction     Planting
and effect
Tree nursery




    Note:The project will start in January, 2005, the ErPP will be postponed if the civil work of the project delays

              Represents expressway project               represents mitigation measures

                                                                   4
6 Monitoring
                                                 Monitoring Schedule
                                                                    Construction
      Sites                Content               Measures                           Operation phase       Monitor Location
                                                                       phase
                                              Actually measured
                                                   value at
                            rainfall                                 rainstorm          rainstorm
                                                Hydrographic
                                                    station
                                                                        After
                     Quantity of Erosion        Spile method                          After rainstorm           B2(K31)
    Spoil site                                                       rainstorm
                                                                                                               B14(K227)
                                                                                    Twice (before and
                   Retain wall maintenance      Field survey                                                   B32(K328)
                                                                                       after flood)
                                              Standard ground
                   Vegetation survival rate                                            Once a year
                                                  methord
                                                                                     Once a year after
                    Impact on watercourse       Field survey
                                                                                          flood
                                                                        After
                      Quantity of erosion       Spile methord                         After rainstorm
                                                                     rainstorm                                 A10(K48)
     Borrow
                                                                                                              A36 (K271)
       pit         Vegetation survival and    Standard ground
                                                                                       Once a year            A45(K319)
                       coverage rate              methord

                        Slope stability         Field survey                           Once a year
                                                                     Once after     Once a year during
                      Quantity of erosion       Spile methord
                                                                       flood         the flood period        Road cutting
Subrade slope                                 Standard ground                                              A24(K206+500)
                   Vegetation survival rate                                            Once a year        Embankment (K108)
                                                  method
                                                                                    Once a year during
                         Maintenance            Field survey
                                                                                     the flood period

                   Vegetation survival and
Interchenage                                    Field survey                           Once a year        Huining interchange
                       coverage rate

     Bridge                  Pier               Field survey                       P=10%after rainstorm      Pile at (K126)

              Total monitor sites                                                                                 10



7      Guarantee Measures

7.1        Design
           (1)     During preliminary design and detail drawing design, the mitigation measures
                   proposed in the approved ErPP report by Gansu Provincial Water Resource
                   Bureau (GWRB) should be incorporated. And the design should be submitted to
                   GWRB for record.
           (2)     Any revising of the ErPP and project design should be reported to GWRB for
                   permission.


7.2        Make Clear the Responsibility of the Construction
           (1)     Bid document author should prepare specific requirements on soil erosion
                   prevention in tendering document and list them in the bidding contract.

                                                                5
       (2)   In the contract, responsibilities of the contractors on the soil erosion prevention
             should be defined;
       (3)   Responsibilities of the owner of sand and stone (outsourcing) on the soil erosion
             prevention should be defined.


7.3    Supervision
Professional certificated erosion prevention supervisors with should be recruited to supervise the
implementation of mitigation measures proposed in ErPP. Completion appraisal of the mitigation
measures should be conducted to ensure all of these measures have been taken.


7.4    Monitoring
Based on the Soil Erosion Monitoring Technical Regulation (SL277-2002), monitoring should be
carried out by qualified unit. Monitoring unit should work out detail monitoring plan and conduct
monitoring based on the plan. The monitoring result should be submitted to EA and Local Water
Resource Bureau as the basis of completion appraisal.


7.5    Inspection and Management
Erosion Prevention Implementation Unit (EPIU) should be established with technical staff for the
management of mitigation measures implementation under the direction and inspection of local
water resource bureaus. The EPIU will be responsible for define the responsibility of each
measure and define the requirements and methodology for the implementation, supervision, and
completion appraisal of the mitigation measures. The mitigation measures should be carried out
by contractors under the supervision of local water resource bureau.




                                                6
                                                         Summary Characteristic of the ErPP
                                                                                                                                            Gansu
                                                                                                                  Construction site
                                                                                                                                           Province
Summary of project


                     The Project includes a 231.056 km expressway from                                                Category            Large-scale
                     Luohandong to Dingxi and a 26.37 km connecting road. The
  components




                     alignment is basically along the existing NH312. The road is                                                         Yellow river
                                                                                                                     River basin
                     mainly constructed by filling. The construction is planed to                                                            basin
                     start in January 2005 and will last for 5 years. The whole                                                           7.245 billion
                     project will be finished and opened to traffic by the end of                                     Total cost
                                                                                                                                             RMB
                     2009.
                                                                                                                 Construction period         5 year
                                                                                                                  Protection scope         2212.8ha
     Damage area of erosion prevention facilities                        817.76ha                   Project construction area              1556.2ha
                     Impact area of the earth-surface                    2212.8ha                                Direct affected area       656.6ha
                                                                                   4
                      Predicted total erosion quantity                   875.1×10 t            Erosion quantity reduction                 865.5×104t
                                                                                        Control percentage of erosion
       Control percentage of impact earth surface                         95.9 %                                                             98.9%
                                                                                                   quantity
                                                                   Loess plateau tableland area, Jing River valley, Kongtong Mt. valley,
                                    Topography
                                                                                         loess drought hilly area
                           Gansu government bulletin                                    Major erosion control area
                                                                                                                 Erosion prevention
                             Erosion prevention area                     1573.92ha                                                           99.1%
                                                                                                                    percentage

                                                                                                      Current erosion intensity           2402 t/km2.a
                                       Mitigation measures for construction roads,
    Objective




                       Mitigation
                                       borrow pits, spoil sites, of which major               Objective erosion intensity                 1863t/km2.a
                                       measures are engineering measures and
                       measures                                                         Allowable erosion intensity in
                                       assistant with 559.72ha of greening. There                                                         1000 t/km2.a
                                       will be 12 interchanges and 4 water pools.             the Project area
                                                                                                         Erosion prevention ratio             1.86
                                                                                               Spoil retain ratio                            99.2%
                                                                                          Area suitable for greening                       572.64ha
                     Borrow pits       18 earth retaining dam and 15 stone              Project greening area                            560.89 ha
                     and Spoil sites   retaining wall with drainage system will be
                                       constructed for disposal of 895.3×104m3          Project greening ratio                           97.9%
                                       spoil. The provider of sand and stone will       Greening coverage ratio                          25.35 %
                                       be responsible for the erosion prevention of
                          Total                        111.32 million                                                  Protection cost    58.58 million
                                                                                         Increased cost (Yuan)




                                       the quarry areas.
                      Included in
                                                         27.47 million                                               Compensation cost    7.55 million
    Cost (Yuan)




                      engineering
                     Increased cost                      83.86 million                                                 Monitoring cost    0.927 million
                         Per ton
                        erosion
                                                         12.86 Yuan/t                                                 Supervision cost    1.465 million
                       prevention
                          cost




                                                                               7

				
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