Manila, Jan 10, 2006 AEST (ABN Newswire) - Asian Development Bank (ASX: ATB) will conduct a study to help the People's Republic of China (PRC) draw up a policy reform plan for the country's railway passenger and freight transport, through a technical assistance grant of US$400,000.
The country's rapid growth over the last two decades has been accompanied by high annual growth in passenger and freight transport - reaching 9% and 7.4%, respectively, between 1978 and 2004. But despite this growth in traffic, the PRC's railway system has lost ground to other modes of transport.
The Government aims to remove constraints facing the railways system and to expand the network. Under its five year plan for 2001-2005, it envisages building some 6,000 km of new lines to previously unserved areas, providing 3,000 km of double lines, electrifying 5,000 km of key lines to boost capacity, and increasing operating speeds on 5,000 km of lines.
During 2003-2007, investments in capital construction for the railways sector are expected to reach CNY450 billion. To complement the expansion of the system, the Government has stressed the need to accelerate reforms in the sector.
"In recent years, despite significant progress and notable achievements, the PRC's railways have been unable to meet the increasing demand for passenger and freight transportation," says Manmohan Parkash, an ADB Transport Specialist.
"Given the enormous investment requirements and the need for a sound administrative environment, ADB's new TA will help review the passenger and freight demand structure and assist in preparing a reform plan to meet these challenges."
The study will look at the conflicting roles of meeting social obligations and making profits, competition with other transport modes, and the impacts of urbanization and economic development on transport. It will also look at the possibility of innovative passenger and freight transport projects or products to enhance the competitiveness of the railway sector and improve customer satisfaction.
The TA will examine opportunities for diversified financing sources, increased private sector involvement, and the possibility of public-private partnerships. The study will research existing work carried out on PRC railways, make use of experience with similar reforms in other railways, and help in preparing a policy reform plan that the Ministry of Railways can carry out.
The TA's total cost is estimated at $520,000 equivalent, of which the Ministry will provide about $120,000 in counterpart funding for staff and official facilities, etc. It is expected to be completed around September this year.
ADB focuses on the development of railways in the PRC's less developed inland provinces to promote growth and reduce poverty. It has provided 13 loans totaling $2.64 billion to finance construction of about 1,900 km of provincial railways operated by joint ventures with the Ministry of Railways and 4,600 km of new railways lines under national railway projects.
Contact
Tsukasa Maekawa
Email: tmaekawa@adb.org
Tel:+632 632 5875; Mobile: +63917 625 1351
Graham Dwyer
Email: gdwyer@adb.org
Tel:+632 632 5253; +632 898 3413
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