PROJECT INFORMATION DOCUMENT (PID)
                                                     CONCEPT STAGE
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                                                                                                              Report No.: PIDC508


                         Project Name                 CN Yunnan Honghe Prefecture Urban Transport (P101525)
                         Region                       EAST ASIA AND PACIFIC
                         Country                      China
                         Sector(s)                    Urban Transport (90%), General transportation sector (10%)
                         Theme(s)                     City-wide Infrastructure and Service Delivery (100%)
                         Lending Instrument           Specific Investment Loan
                         Project ID                   P101525
                         Borrower(s)                  People's Republic of China
                         Implementing Agency          Honghe Prefecture Government
                         Environmental                B-Partial Assessment
                         Category
                         Date PID Prepared/           27-Mar-2013
                         Updated
                         Date PID Approved/           02-Apr-2013
                         Disclosed
                         Estimated Date of
                                                     05-Aug-2013
                         Appraisal Completion
                         Estimated Date of            21-Nov-2013
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                         Board Approval
                         Concept Review               Track I - The review did authorize the preparation to continue
                         Decision

                         I.   Introduction and Context
                              Country Context
                              In the past thirty years, China has experienced unprecedented economic growth, accompanied by
                              rapid urbanization and modernization, as well as an increased need in access to mobility. The share
                              of urban population has increased from17.9 percentin 1987 to 51 percent in 2011, which means 690
                              million urban dwellers. It has been projected by China’s 12th Five-Year Economic and Social
                              Development Plan (2011-2015) that the urbanization rate will reach 65 percent by 2030 with an
                              increase of 300 million in urban population.

                              The Central Government of China launched the Western Regional Development Strategy in 2000.
                              The goal was to promote the socio-economic development in the western region and narrow
                              development gaps between this area and the coastal regions. Despite its positive impacts on the
                              development of the western region, the western region was still lagging behind other relatively
                              developed coastal regions, with the GDP per capita in 2010 of only 63 percent of the national
                              average. To promote equality and inclusiveness, the State Council approved the 12th Five-Year Plan


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                         (FYP) of Western Regional Development Strategy, which underpins its importance to the national
                         strategy. It emphasized that additional support for infrastructure development should be provided to
                         minority-concentrated and frontier areas. The two key components identified for infrastructure
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                         development are transport and water. The Dianzhong area (southern Yunnan Province) in this
                         project was an identified case that requires specific attention, as it is expected to become a regional
                         hub of logistics, tourism, energy, and trade connecting the South and Southeast Asian countries.
                         Sectoral and Institutional Context
                         According to the 12th FYP of the Western Regional Development Strategy, it is expected that the
                         western region will reach an urbanization rate of 45 percent between 2011 and 2015 with a higher
                         growth rate of GDP per capita than the national average. Withthis rapid urbanization comes
                         accelerated motorization. Therefore, a foreseeable increasing need in urban transport investment
                         will remain on the top of local government’s agenda. Contrary to many coastal cities that have
                         completed their construction of basic urban transport infrastructure in the past decades, the small
                         and medium cities in the western region usually face the problems of inadequate investment in
                         expanding and improving their transport system.

                         As has been witnessed in many cities in the coastal regions, emerging problems come with rapid
                         urbanization and motorization. For example, increased traffic congestion, green house gas
                         emissions, and road accidents. Drawing lessons from these urban transport problems in the coastal
                         cities, the 12th FYP of the Western Regional Development Strategy not only identifies
                         infrastructure investment as a priority for urban transport, but also stresses that public transport
                         development should be placed on the top of the agenda. In 2009, investments in public transport and
                         urban road construction accounted for 6 percent and 57 percent, respectively, of total urban
                         infrastructure capital investment in the western region (compared to that of 24 percent for public
                         transport and 41 percent for road construction in coastal cities). In particular, under-investment in
                         public transport results in insufficient and unreliable services, which seriously affects people’s
                         mobility in areas where few people own cars. There is still inadequate capacity and emphasis placed
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                         on planning and managing urban transport systems in a sustainable manner throughout cities in the
                         western region.

                         Introduction to Yunnan Honghe Prefecture, Mengzi City, and Jianshui County

                         Honghe Hani and Yi Autonomous Prefecture of Yunnan Province (HAP) hosts Diannan City
                         Cluster, located in the South of Yunnan and strategically positioned on the Kunming-Hanoi
                         economic corridor. HAP has an area of about 33,000 square kilometers and a population of 4.5
                         million. About 58 percent of its population is minority. Ethnic minorities and women compose the
                         largest vulnerable groups in this area. Due to lack of access to education and other socioeconomic
                         reasons, the illiteracy rate for women is 12.69 percent, which is 7.35 percent higher than that of
                         men. HAP consists of three cities (Mengzi, Gejiu, and Kaiyuan) and ten counties.

                         The Yunnan Honghe Prefecture Urban Transport Project is proposed to include Mengzi city and
                         Jianshui county.

                         Mengzi City is located 289 km south of Kunming and 140 km from the Vietnam border. Mengzi
                         Municipality has an area of 2,228 square kilometers and a population of 356,000 inhabitants with an
                         annual growth rate of 15 percent. The city itself has a population of 241,000 inhabitants. In 2010, its
                         GDP reached 7.36 billion RMB (approximately US$1.17 billion), a 16 percent increase from 2009.


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                         Mengzi city has formed a city cluster in the Southeast of Yunnan province with the other two cities
                         of HAP, including Gejiu (400,000 inhabitants) and Kaiyuan (270,000 inhabitants). The whole
                         region is becoming a border economic centre. Mengzi is now an industrial base, transport hub, and
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                         livable city within the economic corridor.

                         Jianshui County has an area of 3,789 square kilometers and a population of about 500 ,000
                         inhabitants. Jianshui town, with a population of 120,000 inhabitants, is a center of provincial
                         historic interest with some buildin gs and monuments dating back 1200 years. The old town attracts
                         tourists from neighboring regions, but faces the constraint of less developed infrastructure (urban
                         transport, hotels, sanitation, etc). Distances between Jianshui and the city cluster of Men gzi, Gejiu
                         and Kaiyuan are respectively 65, 42, and 47 kilometers. Therefore, Jianshui County is also
                         considered to be a part of the border economic centre with the same type of industrial development
                         as the city cluster. In 2011, its GDP reached 7.3 billion R MB (US$1.16 billion), a 12.6 percent
                         increase since 2010 with an average per capita disposable income of urban residents of 14,000 RMB
                         (about US$2,222).

                         Both Mengzi City and Jianshui County are facing several serious transport issues caused by rapid
                         economic growth and accelerated urbanization.

                         a) Neither city has a comprehensive urban transport plan or a clear functional road hierarchy. The
                         majority of trips in Mengzi are carried out by non-motorized transport (about 50 percent of total
                         trips) and motoriz ed two-wheelers (about 22 percent). Only 9.4 percent of trips are carried out by
                         public transport. Motorcycles and cars carried 8.4 percent and 9.4 percent of total trips, respectively.
                         However, with the increase of household income (close to the US$3,000 threshold where car
                         ownership expands), the current trend is that people are generally inclined to purchase personal
                         vehicles to meet their basic travel demands. This natural trend is not sustainable as has been
                         witnessed in many more developed cities. It will lead to congestion, pollution, and poor safety
                         conditions.
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                         b) Compared to the increasing car ownership, the public transport systems in two cities are
                         suffering from insu fficient service coverage and low operation efficiency. There are only 97 buses
                         in Mengzi and 72 buses in Jianshui. There is no sch eduling, and only three bus routes have bus
                         stops with platforms. Bus terminals and depots are also inadequate. The ratio is 3.75buses per
                         10,000 inhabitants, about a half of the domestic recommended ratio. Most of these buses are small
                         with only 19 seats due to narrow streets. Surveys show dissatisfaction from bus passengers, with
                         most complaints on long waiting time and unreliable services. Jianshui faces similar problems
                         including a lack of funding to replace old buses. In addition, the street network is insufficient in the
                         southern part of the town, and there is an urgent need for Jianshui County to develop its urban
                         transport infrastructure to support the tourism industry and overall economic development.

                         c) There is also a clear need for better road safety management. According to the HAP Statistics
                         Bureau, in the first half of 2010, there were 78 road traffic fatalities and 114 injuries, with 18
                         fatalities in Mengzi and 31 in Jianshui. Road traffic fatalities account for 71 percent of all accident
                         fatalities in HAP during that period. Mengzi, in particular, faces significant challenges on school
                         transport safety. Recent news from the media reported a 19 seat school bus packed with 70
                         passengers resulting in school children being forced to disembark the bus by jumping from the
                         windows.



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                             From the challenges identified above, it is apparent that the Yunnan Honghe Prefecture Urban
                             Transport Project is an opportunity to make the public transport system efficient and reliable,
                             improve safety conditions for pedestrians and bicyclists, and allocate public space to each
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                             transportation mode more rationally. To solve this challenge, the integrated corridor management
                             approach will be utilized in this project. This concept has been introduced to and implemented
                             successfully in a substantial and growing number of cities in Asia, in places where resources of all
                             kinds are more constrained than typical developed cities. This approach aims at optimizing the use
                             of roadway infrastructure and public transport supply to move the largest number of people safely,
                             efficiently, and reliably with minimum environmental impacts.
                             Relationship to CAS
                             The proposed Honghe Prefecture Urban Transport Project is consistent with the 12th FYP. It is also
                             consistent with the Bank’s China Country Partnership Strategy (CPS) for 2006-2010 endorsed by
                             the Board on May 23, 2006, which seeks among other objectives, toimprove the competitiveness of
                             the various regions of China and the overall investment climate, as well as to address the needs of
                             disadvantaged groups and underdeveloped areas by financing infrastructure. Specifically, the
                             project supports all five pillars of the CPS by: (a) promoting balanced urbanization; (b) reducing
                             poverty, inequality, and social exclusion; (c) financing sustainable and efficient growth; (d)
                             managing resource scarcity and environmental challenges; and (e) improving public and market
                             institutions. The new CPS for 2011-15 is under preparation and will be consistent with the 12th
                             FYP, which also highlights the importance of urban transport development.

                         II. Proposed Development Objective(s)
                             Proposed Development Objective(s) (From PCN)
                             The proposed project development objective (PDO) is to improve the safety, accessibility, and
                             efficiency of people’s daily trips by optimizing functional road hierarchy, developing public
                             transport, and establishing road safety measures through integrated corridor/area management in
                             Mengzi and Jianshui.
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                             Key Results (From PCN)
                             The PDO achievements will be measured through the following proposed outcome indicators:

                             a) Efficiency: Reduced travel times and improved travel time reliability (with designated bus lanes
                             and better bus services), reduced junction clearance times (with improved junction design and
                             channelization as well as improved traffic management), and reduced travel impedance for
                             transferring among various transport modes (with better transport mode integration) in Mengzi City
                             and Jianshui County.

                             b) Accessibility: Increased number of people, especially ethnic minorities, women, and other
                             vulnerable groups will have more equitable access to urban transport services (through rationalizing
                             the road network and working towards functional road hierarchy for all road users) in Mengzi City
                             and Jianshui County (including specific provisions for access to historic sites);

                             c) Environmental Sensitivity: Reduced green house gas emissions (through purchasing clean energy
                             buses) and reduction in severance between urban and historic centers (through applying
                             environmentally sensitive designs);

                             d) Safety: Lower annual urban transport related fatalities (through a safe system approach based on


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                             a comprehensive safety assessment that includes enhancements to meet school transport needs) in
                             Mengzi city.
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                         III. Preliminary Description
                             Concept Description
                             Based on the findings from the two project cities, it has been tentatively agreed that the project will
                             include four components in Mengzi City and three components in Jianshui County. Detailed
                             descriptions are provided:

                             Component 1– Mengzi City (US$100 million):

                             (i) Road Network Re-functioning and Improvement (US$50 million)- This sub-component aims at
                             providing a functional road hierarchy by filling some of the gaps in the existing road network. This
                             goal will be achieved through (a) constructing or upgrading of approximately 9 kilometers of road,
                             (b) optimizing the space allocation for approximately 11 kilometers of road, such as giving priority
                             to non-motorized transport and public transport, improved intersections, as well as enhanced
                             pedestrian facilities, and (c) rationalizing the road network;

                             (ii) Integrated Corridor Management (US$40 million)- This sub-component is focused on integrated
                             public transport corridor improvement on three selected corridors. Based on further assessment of
                             quality and performance of bus services on these corridors, this sub-component will include (a)
                             investment in constructing bus dedicated lanes, (b) installing bus priority signals, (c) constructing/
                             upgrading bus stops, bus depots and terminals, (d) improving pedestrian crossings and other non-
                             motorized facilities to enhance accessibility to public transport and reduce the severance caused by
                             unnecessarily wide roads, especially for the vulnerable groups, (e) optimizing a bus dispatching
                             system and bus route development program; (f) purchasing new clean energy buses.

                             (iii) School Transport Safety Improvement (US$8 million)- This sub-component will develop a safe
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                             school transport demonstration program in Mengzi city. The program includes (a) “a model school
                             transport zone�? for four primary schools and two middle schools, and (b) “a home to school
                             transport demonstration corridor�? that focuses on increasing the accessibility to education between a
                             poor suburban/rural area and a commercial district; and

                             (iv) Institutional Strengthening (US$2 million)- This sub-component will provide institutional
                             development, capacity building, and technical assistance to Mengzi city.

                             Component 2 – Jianshui County (US$50 million):

                             (i) Core Urban Area Integrated Transport Improvement (US$28 million)- This sub-component will
                             improve safety, mobility, and accessibility by implementing a comprehensive package of measures
                             on selected corridors in the Jianshui core urban area. The measures will include (a) re-allocation of
                             road space for public transport modes, pedestrians, and non-motorized transport and (b) provide
                             priority for public transport to meet people’s travel demands while slowing down the pace of car
                             ownership;

                             (ii) Urban Road Network Improvement (US$20 million)- This sub-component will connect villages
                             in southern Jianshui county to a new logistics park, a new railway station, and a new industrial zone.



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                             To meet this goal, a bypass will be constructed to connect five local roads; and

                             (iii) Institutional Strengthening (US$2 million)- This sub-component will provide consistent
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                             institutional development, capacity building, and technical assistance to Jianshui county.

                             The total project cost is US$300 million, with an IBRD loan of US$150 million.

                         IV. Safeguard Policies that might apply
                             Safeguard Policies Triggered by the Project                                    Yes            No   TBD
                             Environmental Assessment OP/BP 4.01                                                ✖
                             Natural Habitats OP/BP 4.04                                                                   ✖
                             Forests OP/BP 4.36                                                                            ✖
                             Pest Management OP 4.09                                                                       ✖
                             Physical Cultural Resources OP/BP 4.11                                                              ✖
                             Indigenous Peoples OP/BP 4.10                                                                       ✖
                             Involuntary Resettlement OP/BP 4.12                                                ✖
                             Safety of Dams OP/BP 4.37                                                                     ✖
                             Projects on International Waterways OP/BP 7.50                                                ✖
                             Projects in Disputed Areas OP/BP 7.60                                                         ✖


                         V. Financing (in USD Million)
                            Total Project Cost:   300.00                       Total Bank Financing:        150.00
                            Total Cofinancing:                                 Financing Gap:                       0.00
                             Financing Source                                                        Amount
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                             Borrower                                                                 150.00
                             International Bank for Reconstruction and Develo                         150.00
                             Total                                                                    300.00

                         VI. Contact point
                             World Bank
                             Contact:     Fei Deng
                             Title:       Sr Transport. Spec.
                             Tel:         458-8606
                             Email:       fdeng@worldbank.org

                             Borrower/Client/Recipient
                             Name:        People's Republic of China
                             Contact:
                             Title:
                             Tel:



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                             Email:
                             Implementing Agencies
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                             Name:      Honghe Prefecture Government
                             Contact:   Mr. Li Guocai
                             Title:     Director
                             Tel:       13887351232
                             Email:

                         VII. For more information contact:
                             The InfoShop
                             The World Bank
                             1818 H Street, NW
                             Washington, D.C. 20433
                             Telephone: (202) 458-4500
                             Fax: (202) 522-1500
                             Web: http://www.worldbank.org/infoshop
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