Page  1
CONFORMED COPY 
 
LOAN NUMBER 4881-CHA 
 
Project Agreement 
 
(Guiyang Transport Project) 
 
between 
 
INTERNATIONAL BANK FOR RECONSTRUCTION  
AND DEVELOPMENT 
 
and 
 
GUIYANG MUNICIPALITY 
 
Dated March 18, 2008 
 
Page  2
PROJECT AGREEMENT 
 
Agreement dated March 18, 2008, entered into between 
 
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 
(“Bank”) and Guiyang Municipality (“Project Implementing Entity”) (“Project 
Agreement”) in connection with the Loan Agreement of same date between PEOPLE’S 
REPUBLIC OF CHINA (“Borrower”) and the Bank (“Loan Agreement”).  The Bank and 
the Project Implementing Entity hereby agree as follows: 
 
ARTICLE I 
–
GENERAL CONDITIONS; DEFINITIONS 
 
1.01. 
The General Conditions (as defined in the Appendix to the Loan Agreement) 
constitute an integral part of this Agreement. 
 
1.02. 
Unless the context requires otherwise, the capitalized terms used in the Project 
Agreement have the meanings ascribed to them in the Loan Agreement or the 
General Conditions. 
 
ARTICLE II – PROJECT
 
2.01. 
The Project Implementing Entity declares its commitment to the objectives of the 
Project.  To this end, the Project Implementing Entity shall: 
 
(a) 
carry out the Project in accordance with the provisions of Article V of 
the General Conditions; and  
 
(b) 
provide promptly as needed, the funds, facilities, services and other 
resources required for the Project.  
 
2.02. 
Without limitation upon the provisions of Section 2.01 of this Agreement, and 
except as the Bank and the Project Implementing Entity shall otherwise agree, 
the Project Implementing Entity shall carry out the Project in accordance with the 
provisions of Schedule 1 to this Agreement. 
 
ARTICLE III – REPRESENTATIVE; ADDRESSES
 
3.01. 
The Project Implementing Entity’s Representative is the Mayor or Vice-Mayor of 
Guiyang Municipality. 
 
3.02. 
The Bank’s Address is: 
 
International Bank for Reconstruction and Development 
 
1818 H Street, N.W. 
 
Washington, D.C. 20433 
 
United States of America 
Page  3
2
Cable: 
  Telex: 
  Facsimile: 
 
INTBAFRAD  
248423(MCI) 
or 
1-202-477-6391 
 Washington, 
D.C. 
64145(MCI) 
 
3.03. 
The Project Implementing Entity’s Address is: 
 
Guiyang Transport Project (World Bank Financed) Office 
 
4
th
 Floor, No.1 Building, Shijixin Garden, 
 
No. 42, Er Qiao Road, Guiyang, Guizhou Province 
 
People’s Republic of China 550008 
 
Facsimile: 
 
86-851-477013  
 
AGREED at Beijing, People’s Republic of China, as of the day and year first 
above written. 
 
INTERNATIONAL BANK FOR 
 RECONSTRUCITON AND DEVELOPMENT 
 
By  
/s/ David Dollar 
 
Authorized Representative 
 
GUIYANG MUNICIPALITY 
 
By  
/s/ Shuai Wen  
 
Authorized Representative 
 
Page  4
3
SCHEDULE 1 
 
Execution of the Project 
 
Section I. 
Institutional and Other Arrangements
Project Management 
 
1. 
The Project Implementing Entity shall maintain throughout the period of 
implementation of the Project: 
 
(a) 
the Project Leading Group headed by the Vice-Mayor and with 
representation of the Secretary General of the Vice-
Mayor’s office, Guiyang Municipal 
Development and Research Commission, Guiyang Municipal Finance Bureau, Guiyang 
Municipal Communication Bureau, and Guiyang Environmental Protection Bureau and 
assigned with such power, funds and other resources as shall be necessary to achieve its 
purposes in a manner and substance satisfactory to the Bank; and 
 
(b) 
the GPMO responsible for the overall management of Project 
implementation, including activities related to environment, resettlement, finance, and 
administration,  headed by a qualified and experienced manager who shall be the director 
of the GPMO, and assisted by a Deputy Director, a Resettlement Specialist, an 
Environmental Specialist and a Procurement expert, under terms of reference satisfactory 
to the Bank, and assigned with such powers, funds, staff in adequate numbers and other 
resources as shall be required to enable the GPMO to achieve its purposes in a manner 
and substance satisfactory to the Bank. 
 
Social and Environment Protection 
 
2. 
The Project Implementing Entity shall in the carrying out of the Project 
implement or cause to implement the RAP, the IPDP, and the EMP, all in a manner and 
substance satisfactory to the Bank. Without limitation to the foregoing the Project 
Implementing Entity shall and shall cause to: 
 
(a) 
 take, all necessary actions to minimize to the extent possible the 
acquisition of land or assets of people, any involuntary loss by persons of shelter, 
productive assets or access to productive assets or income or means of livelihood, 
temporarily or permanently, and the displacement of said people in the carrying out the 
Project or any Part thereof;  
 
(b) 
where the acquisition of land or assets or the displacement of people is 
unavoidable make available to such people compensation in accordance with the RAP 
and before the carrying out of the works which would result in such acquisition or 
displacement, all in a manner satisfactory to the Bank; and 
Page  5
4
(c) 
implement the EMP in a manner satisfactory to the Bank and designed to 
ensure that the Project is implemented in accordance with sound environmental practices 
and standards acceptable to the Bank. 
 
3. 
The Project Implementing Entity shall not amend, suspend, or waive the RAP, 
IPDP and the EMP or any provision thereof, without the prior concurrence of the Bank.   
 
Financial Arrangements between Project Implementing Entity and Guiyang 
Tongyuan Road Construction Development Co. Ltd.  
 
4. 
For the purpose of carrying out Parts A and B of the Project, the Project 
Implementing Entity shall:  
 
(a) 
make available on a grant basis to the Guiyang Tongyuan Road 
Construction Development Co. Ltd part of the proceeds of the Loan allocated from time 
to time under Categories (1) and (2) of the table in paragraph A.2 of Section IV of 
Schedule 2 to the Loan Agreement under the Subsidiary Agreement to be entered into 
between the Project Implementing Entity and Guiyang Tongyuan Road Construction 
Development Co. Ltd on the principal terms and conditions which shall have been 
approved by the Bank, and which shall include, without limitation, those set forth in 
Schedule 2 to this Agreement; 
 
(b) 
cause Guiyang Tongyuan Road Construction Development Co. Ltd to: (i) 
perform, in accordance with the provisions of the Subsidiary Agreement all of the 
obligations of Guiyang Tongyuan Road Construction Development Co. Ltd therein set 
forth; (ii) take or cause to be taken all actions, including the provision of funds, facilities, 
services and other resources, necessary or appropriate to enable Guiyang Tongyuan Road 
Construction Development Co. Ltd to perform such obligations; and (iii) not take or 
permit to be taken any action which would prevent or interfere with such performance; 
and  
 
(c) 
exercise its rights under the Subsidiary Agreement, in such manner as to 
protect the interests of the Borrower and the Bank, and to accomplish the purposes of the 
Loan, and except as the Bank shall otherwise agree, not assign, amend, abrogate or waive 
the Subsidiary Agreement or any part thereof. 
 
Section II. 
Project Monitoring, Reporting, Evaluation
A. Project 
Reports 
 
1. 
The Project Implementing Entity shall monitor and evaluate the progress of the 
Project and prepare Project Reports in accordance with the provisions of Section 5.08(b) 
of the General Conditions and on the basis of the indicators set forth in the Annex to this 
Page  6
5
Schedule.  Each such Project Report shall cover a six (6) month calendar period in each 
year, that is from January through June and from July through December, commencing 
on July 1, 2007, and shall be furnished to the Bank not later than forty-five (45) days 
after the end of the period covered by such report.  
 
2. 
The Project Implementing Entity shall provide to the Borrower not later than  
six (6) months after the closing date for incorporation in the report referred to in  
Section 5.08(c) of the General Conditions all such information as the Borrower or the 
Bank shall reasonably request for the purposes of that Section.   
 
B.
 
Financial Management, Financial Reports; Audits 
 
1. 
The Project Implementing Entity shall maintain a financial management system 
and prepare financial statements in accordance with consistently applied accounting 
standards acceptable to the Bank, both in a manner adequate to reflect the operations and 
financial condition of the Project Implementing Entity, including the operations, 
resources and expenditures related to the Project. 
 
2. 
The Project Implementing Entity shall apply in the implementation of the Project 
the Financial Management Manual in a manner satisfactory to the Bank.  The Project 
Implementing Entity shall not amend, waive, suspend, abrogate or cancel the Project 
Financial Manual or any provision therein without the prior approval by the Bank. 
 
3.  
Without limitation on the provisions of Part A.1 of this Section, the Project 
Implementing Entity shall prepare and furnish to the Borrower as part of the Project 
Report not later than forty-five (45) days after the end of each calendar semester, interim 
un-audited financial reports for the Project covering the semester for forwarding by the 
Borrower to the Bank.  
 
4. 
The Project Implementing Entity shall have its financial statements referred to 
above audited by independent auditors acceptable to the Bank, in accordance with 
consistently applied auditing standards acceptable to the Bank.  Each audit of these 
financial statements shall cover the period of one (1) fiscal year of the Project 
Implementing Entity.  The audited financial statements for each period shall be furnished 
to the Borrower and the Bank not later than six (6) months after the end of the period.
 
Section III. 
Procurement
All goods, works and services required for t
he
Project Implementing Entity’s Respective 
Part of the Project and to be financed out of the proceeds of the Loan shall be procured in 
accordance with the provisions of Schedule 2 to the Loan Agreement. 
Page  7
6
ANNEX 
 
Performance Indicators 
 
The performance indicators referred to in paragraph A.1, Section II of this 
Schedule 1 are set out below.  
 
PDO 
Project Outcome 
Indicators 
Use of Project Outcome 
Information 
To assist the Borrower to 
increase the access and 
mobility of Guiyang 
Municipality’s transport users 
through priority infrastructure 
investments and while 
establishing more sustainable 
mechanisms for rural road 
maintenance; all while 
enhancing capacity for keeping 
municipal debt under control. 
 
Traffic volumes increased 
and average travel times 
decreased on Youxiao 
Road. 
 
Reduction of travel times 
on rural roads. 
 
Assess impact of the 
Youxiao Road urban 
connector and rural 
infrastructure on user’s 
behaviors and the 
effective transfer of 
benefits to road users. 
Intermediate Outcomes 
Intermediate Outcome 
Indicators 
Use of Intermediate 
Outcome Monitoring 
I-Youxiao Road 
 
(1) Transport conditions 
enhanced between the urban 
core and Longdongbao. 
 
Traffic volumes increased 
and average travel times 
decreased. 
 
Monitoring of 
implementation progress 
and taking necessary 
actions to address 
possible delay. 
II-Rural Transport 
 
(2) Increase the number of 
communities connected to new 
and improved all weather 
access. 
 
(3) Increased mobility of rural 
people through improved rural 
bus services. 
 
Number of villages 
connected by project roads. 
 
Number of villages 
serviced by routes from 
Project rural bus stations. 
 
Monitoring of 
implementation progress 
and taking necessary 
actions to address 
possible delay. 
Page  8
7
Intermediate Outcomes 
Intermediate Outcome 
Indicators 
Use of Intermediate 
Outcome Monitoring 
III-Institutional 
Development 
 
(4) Implement rural road 
maintenance and debt 
management systems. 
 
Completion status. 
 
Monitoring of 
implementation progress 
and taking necessary 
actions to address 
possible delay. 
 
Page  9
8
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Page  13
12 
 
SCHEDULE 2 
 
Principal Terms and Conditions of the 
Subsidiary Agreement 
 
The terms and conditions of the Subsidiary Agreement referred to in paragraph 4 
of Section I of Schedule 1 to this Agreement shall include the following:  
 
1. 
The principal amount of the Loan to be made available by Guiyang Municipality 
to Guiyang Tongyuan Road Construction Development Co. Ltd, pursuant to paragraph 4, 
Section I, Schedule 1 to this Agreement shall be the amount in Dollars withdrawn on 
account of Parts A and B of the Project from the Loan Account.  Such amount shall be 
made available by Guiyang Municipality to Tongyuan Road Construction Development 
Co. Ltd on a non-repayable basis.  
 
2. 
Guiyang Tongyuan Road Construction Development Co. Ltd shall undertake to: 
(a) carry out Parts A and B of the Project with due diligence and efficiency and in 
accordance with appropriate management, financial, engineering practices, and social and 
environmental standards acceptable to the Bank, and provide, promptly as needed, the 
funds, facilities and other resources required for the purpose; and (b) without limitation 
on the foregoing, take all measures necessary to ensure that  Parts A and B of the Project 
shall be implemented in accordance with the RAP, the IPDP and the EMP, as the case 
may be. 
 
3. 
Guiyang Tongyuan Road Construction Development Co. Ltd shall undertake to 
procure the goods, works and services to be financed out of the proceeds of the Loan in 
accordance with the provisions of Section III of Schedule 2 to the Loan Agreement, and 
utilize such goods, works and services exclusively in the carrying out of  Parts A and B of 
the Project.  
 
4. 
Guiyang Tongyuan Road Construction Development Co. Ltd shall undertake to 
enable the Bank and the Project Implementing Entity to inspect such goods and the sites 
and works included in Parts A and B of the Project, the operation thereof, and any 
relevant records and documents. 
 
5. 
Guiyang Tongyuan Road Construction Development Co. Ltd shall undertake to 
take out and maintain with responsible insurers insurance of any goods required for Parts 
A
and B of the Project and to be financed out of the proceeds of the Loan against hazards 
incident to the acquisition, transportation and delivery of the goods to the place of use or 
installation. Any indemnity for such insurance shall be made payable in a currency freely 
usable to replace or repair such goods. 
 
6. 
Guiyang Tongyuan Road Construction Development Co. Ltd shall undertake to: 
 
Page  14
13 
 
(a) 
maintain records and accounts adequate to reflect in accordance with 
sound accounting practices their operations and financial condition; 
 
(b) 
have its financial statements (balance sheets, statements of income and 
expenses and related statements) for each fiscal year audited, in accordance with 
appropriate auditing principles consistently applied, by independent auditors acceptable 
to the Bank;  
 
(c) 
furnish to the Bank and the Project Implementing Entity, as soon as 
available but in any case not later than six (6) months after the end of each such year, 
certified copies of said financial statements and accounts for such year as so audited; an 
opinion on such statements by said auditors in such scope and detail as the Bank or the 
Project Implementing Entity shall have reasonably requested; and all such other 
information concerning said records, accounts and financial statements, as well as the 
audit thereof, as the Bank or the Project Implementing Entity shall reasonably request; 
and  
 
(d) 
prepare and furnish to the Bank and the Project Implementing Entity all 
such other information concerning said records, accounts and financial statements, as 
well as the audit thereof, as the Bank and/or Project Implementing Entity shall reasonably 
request. 
 
7. 
Guiyang Tongyuan Road Construction Development Co. Ltd shall undertake to: 
 
(a) 
maintain policies and procedures adequate to enable it to monitor and 
evaluate on an ongoing basis, in accordance with indicators set forth in the Annex to 
Schedule 1 to this Agreement, the carrying out of Parts A and B of the Project and the 
achievement of the objectives thereof;  
 
(b) 
prepare, under terms of reference satisfactory to the Bank and the Project 
Implementing Entity, and furnish to the Project Implementing Entity for its review, 
consolidation and submission to the Bank in accordance with paragraph A.1 of Section II 
of Schedule 1 to this Agreement, semi-annual reports integrating the results of the 
monitoring and evaluation activities performed pursuant to clause (a) of this paragraph 7 
on the progress achieved in the carrying out of Parts A and B of the Project.  Each such 
report shall cover a six (6) month calendar period in each year, that is from January 
through June and from July through December, commencing on July 1, 2007, and shall 
be finished not later than thirty (30) days after the end of the period covered by such 
report; and 
 
(c) 
provide such other information and reports as the Project Implementing 
Entity may request in order to enable the Project Implementing Entity to fulfill its 
obligations under the Project Agreement.  
 
Page  15
14 
 
8. 
The Project Implementing Entity shall have the right to suspend or terminate the 
right of Guiyang Tongyuan Road Construction Development Co. Ltd to the use of the 
proceeds of the Loan made available under the Subsidiary Agreement upon failure by 
Guiyang Tongyuan Road Construction Development Co. Ltd to perform any of its 
obligations under the Subsidiary Agreement; or upon notice from the Bank that it intends 
to exercise or has exercised any remedy under Article VII of the General Conditions.