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LESSONS:

Hefei-Xi’an Railway Project

sector: Transport | country: China, People’s Republic of

A general lesson from the Project is that the actual freight traffic in the initial years of operation was much higher than the appraisal estimates, reflecting the strong economic performance in the People’s Republic of China (PRC) in general and in the project area in particular. Projections of output levels resulting from development activities that will be catalyzed by the transport investment should be carefully estimated. Development of other transport modes in the project area needs to be carefully reviewed and updated. Traffic forecasting for ADB ongoing projects is improving and needs to be continually strengthened to ensure more realistic assessments.

In March 2006, the consultants providing industrial development and marketing assistance pointed out that the railway was unable to meet demand, primarily due to a shortage of wagons. This has been the case for some years, with an estimated shortage of 35% nationwide.

Though not funded under the Project, access and link roads are critically important to the successful operation of the facility. While the proposed roads were reasonably well defined at appraisal, the monitoring of their construction was not robust. The construction and finalization of all access and link roads should have been more closely monitored and evaluated by the executing agency (EA) during implementation and at project completion to ensure better access.

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