Kaili East Green Public Transport Hub PPP Project (Phase 1)

Client: Asian Development Bank

Duration: 2017-2018

Location: Kaili, Qiandongnan Miao and Dong Autonomous Prefecture, Guizhou Province, PRC

Contract Value: USD 327,450

Catalogue: Rural and Urban Development

Project Description

Before this proposed project, Kaili had only one integrated passenger transport hub located in the West of the city, which could only provide limited services due to the planning restriction. The Kaili Public Transport Company (KPTC) was responsible for managing and operating this service. Therefore, the proposed Kaili East Green Public Transport Hub Project was expected to fulfill the following strategic objectives for the city:(i) provide modern and high quality short, medium and long-distance passenger intercity transport service for Kaili from the East; (ii) provide a modern and high quality city bus terminal station and depot that serves all the city’s buses; (iii) establish an integrated public bus terminal with sufficient parking space to cater for self-driving tourists and that links with bus day-tour programs to villages around Kaili; (iv) relocate vehicle trade, repair and maintenance shops that are currently scattered around Kaili to the transport hub to improve the efficiency, safety and environment of key transport corridors; and (v) take advantage of passenger and tourist traffic at the transportation hub to establish a commercial center and hotel. In addition, the Kaili Transportation Bureau (KTB) and KPTC decided to adopt the PPP model in this project, NAREE was recruited to facilitate the PPP project preparation, including the determination of PPP model and the development of implementation plan.

Services Provided by NAREE

Review, Refinement and Validation – To refine the project engineering design and commercial layout, NAREE reviewed the master plan of Kaili transport development, the forecasts of tourism demand, travel modality, passenger trip growth and long-distance transport demand growth, the existing feasibility study report and design documents of Kaili East Green Public Transport Hub; then, designed and conducted a market survey for the local and regional market demands evaluation.

PPP Model Development and Market Testing – NAREE developed a PPP framework based on relevant national PPP guidelines and requirements that enables the Transport Hub’s operational strategy to be realized. This PPP framework encompassed the PPP model, financial calculation, value for money assessment, financial affordability assessment, PPP implementation plan, and performance evaluation and management framework. NAREE also prepared the market testing materials and completed preliminary market testing with potential investors. Their feedbacks were summarized and provided for Government’s further decision making.   

Capacity Building –NAREE organized a series of formal and informal capacity building activities from workshops to face-to-face discussions with local government and project owners throughout the course of the project. These capacity building activities intended to share knowledge and experience of PPP (and particularly transport hub PPP) project design and implementation.