A difficult mountainous terrain and an inadequate transport system used to isolate southern Gansu in the western region of the People’s Republic of China (PRC). Before the project, Gansu's road density was just 9.1 kilometers (km) per 100 square kilometers (km2), or not even half the national average of 20 km per 100 km2. 24% of the villages had no road access and 25% had no bus service. 57% of the townships had no all-weather roads, and there was also no expressway, class I road, airport, or railway linking Longnan, the focal project prefecture, to surrounding areas. With poor connectivity and mobility, Gansu was PRC’s second poorest province during project appraisal.
The Southern Gansu Roads Development Project, approved in December 2006 by the Asian Development Bank (ADB) for a loan of $300 million, sought to improve the situation by constructing an important section of the high priority Lanzhou–Haikou corridor and improving the local road transport system. The project’s anticipated impact was sustainable economic growth and poverty reduction in Gansu and the project area. Its intended outcome was improved transport services in Longnan municipality. It had six planned outputs: (i) a 134-kilometer (km) toll expressway from Wudu to Guanzigou, (ii) 357 km rural roads upgraded, (iii) 200 township bus stations, (iv) a road transport action plan piloted, (v) improved corporate governance, and (vi) strengthened capacity of local transport authorities.
The Wudu–Guanzigou Expressway, the project’s main physical output, was opened to traffic in December 2013. 357.42 km rural roads, longer than planned, were upgraded to class IV or III roads. A total of 30, instead of 200, mostly class V bus stations and 1,500 bus stops were built. Most of these bus stations also serve as multifunction buildings, housing other government services such as police, health and tourism, and transport. The transport action plan piloted in Longnan brought about transport service improvements in the project area and nearby: by 2016, 100% of townships and 90% of administrative villages in Southern Gansu had access to bus and/or mini-bus services and by end-2017, 95% of all villages in Gansu enjoyed the same benefit.
Corporate governance reforms effectively separated road sector planning and policy work from construction and operation and maintenance. Focusing on the construction of high-class roads and expressways, the state-owned Gansu Changda Highway Company Limited (GCHC) developed several remarkable technical innovations, including tunnels in mountainous areas, safety design, a double-story bridge, landslide hazard detection, seismic design, and disaster prevention technology.
Notwithstanding a 3.5-year delay in completion due mainly to the 2008 earthquake and heavy rains during construction, the project was highly effective in achieving its intended outcome. The expressway reduced travel time between Wudu and Guanzigou from 8 hours to1.5 hours. Vehicle operating costs/km were reduced by 54%. Rural incomes rose from CNY1,780 in 2007 to CNY5,405 (about $837) in 2015.
The Gansu Provincial Transport Department executed the project. Three agencies served as implementing agencies ─ the GCHC for the expressway, the Longnan Transport Bureau for rural roads, and the Gansu Provincial Transport Administration Bureau for the bus station and transport service components.