study on da nang-quang ngai expressway

Study on Economic Partnership Projects in Developing Countries in FY2007 Study on Da Nang-Quang Ngai Expressway Project in the Socialist Republic of Vietnam ( Project Operation Approach ) SUMMARY March 2008 Nippon Koei Co., Ltd. West Nippon Expressway Company Limited Central Nippon Expressway Company Limited ITOCHU Corporation Summary 1. Background of the Project Government of Vietnam (GOV) established Vietnam “Transport Development Projection by 2010” October 2002 as a master plan of the transport sector in Vietnam. Development of efficient traffic network and mass-transit traffic in the major cities, like Hanoi and HCMC, is given the higest priority in the plan. MOT established “Highway Network Plan in Vietnam by 2020” and requested the GOV for approval, by his letter No. 5014/TTg-BGTVT dated 19 August 2005. A priority section of 2,113km of North-South Expressway was selected and Vietnam Expressway Corporation (VEC) was established for the materialization of the plan. Two (2) sections of the expressway, Cau Gie - Ninh Binh, and HCMC - Trung Luong are being constructed by VEC. The above master plan was updated by ADB (April 2007), subsequently it again is being updated by MOT himself. A JICA development study titled “The Comprehensive Study on Sustainable Development of Transport System in Vietnam (VITRANSS 2)” tookover and being conducted with close communication with MOT. The North-South Expressway Construction Program is one of “Three Programs of Vietnam-Japan Joint Communique in October 2006”, and paid much attection by both governments. Government of Japan (GOJ) had executed the site investigation at the end of February 2007. Da Nang - Quang Ngai Section of the North-South Expressway was nominated as one of eight (8) sections of the expressway to be built by Japanese ODA by Prime Minister’s letter No. 412/QD-TTg dated 11 April 2007, and its smooth materialization is highly expected among the concerned parties. Under such circumstance, Ministry of Economy, Trade and Industry (METI) of Japan decided to carry out a study under the scheme of “Study on Economic Partnership Projects in Developing Countries in FY2007” and the study was sublet to Japan External Trade Organization (JETRO). Table S-1 Sections of North-South Expressway to be built by Japanese ODA No. Section Length (km) Nos of Lanes Cost (MUSD) Start Construction 1 Ninh Binh - Thanh Hoa 60 4-6 529 2009 2 Thanh Hoa - Vinh 138 4-6 1,217 2009 3 Hue - Da Nang 105 4-6 926 2009 4 Da Nang - Quang Ngai 125 4-6 1,103 2009 5 HCMC - Long Thanh - Dau Giay 55 6-8 618+562 2008 6 Nha Trang - Dau Giay 400 4-6 3,528 2009 7 HCMC - Trung Luong 45 4-6 600 2005 8 Trung Luong - Can Tho 82 4-6 745+255 2008 (Source: Prime Minister Letter No. 412/QD-TTg dated 11 April 2007) 2. Necessity of the Project Necessity of the Project can be summarized in the following five (5) aspects: - To Support Nationwide Socio-economic Development - To Promote Socio-economic Development of Central Vietnam - To Promote Traffic Safety - To Promote Environmental Protection - To Promote by Japanese ODA Loan (1) To Support Nationwide Socio-economic Development Socio-economic development rate of Vietnam has been keeping around 7-8 % in last decade and it is forecasted to keep the rate for coming decades. Volume of transport, domestic and international, has been increased remarkably to support such development widely in Vietnam. It is proved, by traffic survey, that 20% of logistics passing in the central Vietnam has their origin and destination in Hanoi and HCMC. More than 40% of traffic between Da Nang - Quang Ngai is long trip traffic connecting Northern Vietnam and Southern Vietnam. Da Nang - Quang Ngai Expressway shall be built timely in order to support the nationwide development of Vietnam. Figure S-1 Origin and Destination of Traffic in Hai Van Pass (Source: Nippon Koei Feasibility Study for 2nd Hai Van Tunnel, 2002) South N orthward Total 9,965 vehicles/day 2,341 vehicles/da y (23.5%) 3,273 vehicles/da y (32.8%) Quang Ngai City and Southward Other intera traffic 3,944 vehicles/da y (39.6%) 407 vehicles/da y (4.1%) Da Nang City and N orth Figure S-2 Origin and Destination of Traffic in Central Vietnam (2) To Promote Socio-Economic Development of Central Vietnam Socio-economic development strategy of Vietnam applies harmonized development policy among North, Central and South of Vietnam. Integrated Industrial Area Development Strategy (IIADS) have been planed and executed in the three regions accordingly. Area development consists of the following development components, and good achievement shall be materialized when integration of all components would be performed in harmony: - Seaport and Airport as Trade Gateway - Industrial Zone as Production Base - Stable Supply of Electricity and Water as lifelines - Transportation infrastructure between production point and ports as logistic artery - Comfortable Living Environment As shown in Figure S-3, GDP per capita in the central region is comparatively lower than the other two regions. Da Nang - Quang Ngai expressway shall be built, as soon as possible, in order to promote the industrialization of Da Nang - Quang Ngai Industrial Corridor by functioning as logistic artery. Construction of Da Nang - Quang Ngai Expressway is essential for the socio-economic development of the central region of Vietnam, otherwise, this region would be much delayed and depressed in terms of development in the country and would cause unstable social condition. Figure S-3 Three Focal Economic Areas in Vietnam (Source: JICA VITRANSS 2, 2007) (3) To Promote Traffic Safety Reduction of traffic accident is one of major issues in traffic policy in Vietnam because there are presently more than 13,000 victims per year and still increasing. National Traffic Safety Committee (NTSC) and Traffic Safety PMU under MOT are being active for this mission. One of major reason of traffic accident is “Mixed traffic”, especially during night time, consists of industrial traffic and living traffic, long trip traffic and short trip traffic. Industrial traffic with long trip shall be carried by expressway and to be separate from living traffic. Da Nang - Quang Ngai expressway shall be built, as soon as possible, in order to reduce number of traffic accidents by provision of industrial logistic corridor separate from living traffic on NH1A. (4) To Promote Environmental Protection Traffic volume in NH1A is getting larger and larger, year by year. Air pollution and traffic noise, caused by such heavy traffic, are getting worse to living condition nearby. Da Nang - Quang Ngai expressway shall be built, as soon as possible, in order to reduce adverse traffic effect to the living environmental condition along the NH1A, especially for air pollution and traffic noise. (5) To Promote by Japanese ODA Loan As shown in Table S-1, the project is expected under funding of Japanese ODA Loan by GOV. Moreover, the result of economic and financial analyses show that this investment should be materialized by the governmental funding scheme because higher EIRR (18.2%) but lower FIRR (8.7%) is not attract private sector to participate investment under the BOT scheme. Da Nang - Quang Ngai expressway shall be built under ODA scheme because the investment return is higher in EIRR but lower in FIRR. 3. Related Policies, Decisions in Vietnam Side Da Nang - Quang Ngai expressway is given the highest priority as shown in Table S-1 above. In addition, the following documents had been issued in Vietnam. Table S-2 Related Official Documents with Da Nang - Quang Ngai Expressway No. Ref. No. Issued Date Issued by Address to 1 487/BGTVT-KHDT 26/1/2007 MOT MPI 2 5807/BKH-KTDN 14/8/2007 MPI GOV 3 4899/VPCP-QHQ 30/8/2007 GOV MPI As shown in the table, it is apparent that construction of Da Nang - Quang Ngai expressway is recognized not only one of the highest priority projects but also one of urgent needed projects in Vietnam. Such maturity of the project in Vietnam side had been confirmed during the MOT meeting on 20 December 2007 chaired by MOT Vice Minister. 4. Outline of the Project (1) Outline of the Project Study results are summarized in Table S-3. Table S-3 Updated Project Major Features 1 Project Cost JPY143Bil (VND19,927Bil) 2 EIRR 18.2% 3 NPV (Discount Rate = 12%) JPY62Bil (VND8,593Bil) 4 B/C (Discount Rate = 12%) 2.20 5 FIRR 8.7% 11 Project length 131km (BP at NH14B in Da Nang, EP at Provincial Road 625 in Quang Ngai) 12 Road Classification Class A 13 Design Speed 100km/hr 14 Road Width 26m (Carriageway: 4@3.75m, Shoulder: 2@(0.75m+3.75m), Median: 2.0m) 15 Stage Construction Complete 4-lane in the 1st Stage 16 Major Intersections 9 Interchanges, 11 Flyovers 17 Bridges 115 Bridges (4 Large Bridges, 5.3km Viaducts), Total Length: 14,520.3m 18 Cross Structures 100 Road Culverts, 376 Waterway Culverts 19 Softground Soil Section Approximately 19.5km 20 Traffic Management & ITS Facilities 2 Throughway Toll Barriers, Traffic Management Facilities, 2 Service Areas, 3 Traffic Management Centers, 7 Expressway Bus Stops 21 Capacity Development Establish a O&M Company (a) Application of Stage Construction Method After discussion with MOT on 20 December 2007, during the 2nd Site Study in Vietnam, it was discussed and instructed to build the following structures during the initial construction stage. The instruction was confirmed by MOT letter No. 595/-TB-BGTVT dated 29 December 2007. In this study, preliminary design, quantities take-off, and cost estimate were carried out on the basis this MOT instruction. Table S-4 MOT instruction on Stage Construction (20 December 2007) No. Structure Initial Stage Remarks 1 Land Acquisition 20m offset from bottom of slope Cost estimate for 15m offset case is required 2 Embankment For 4 lane 3 Cut For 4 lane 4 Bridges For 4 lane 5 Cross Structures For 4 lane 6 Pavement For 4 lane Cost estimate for 2 Lane pavement case is required 7 Interchanges For 4 lane (b) Alternative Study and Selection of Opitimum Option Through the study, the following alternative studies were carried out and oputimum opitions were selected as the Engineer proposal. km64 to km90 It was newly identified that there are two design controls between km64 to km90 near Tam Ky city in Quang Nam province. One is the Phu Ninh Lake Environmental Presavation Area, and the other is extended area of Chu Lai Economic Zone. The study team prepared several alignment alternatives and propose an optimum alignment. Discussion with Quang Nam Provice People’s Committee on 18 January 2008, and the alignment was agreed. Not only the alignment updated, viaduct structure was proposed in order to secure the beautiful sineary of the area and provide sufficient dirainage capacity during flood season. This proposal was also explained during the meeting and agrred by Quang Nam Province. Figure S-4 Alignment Updated near Phu Ninh Lake in Quang Nam Province Structural Solution to Flood Areas In the study area, there are several flood areas where serious damages caused annually to the agriculture. In the previous feasibility study in 2003, flood record was surveyed and Design Flood Level (DFL) was provided. However, no structural solution for the flood areas was proposed. In this study, the following concept for the structural solution for the flood areas was proposed. Figure S-5 Design Concept of Structural Solution to Flood Areas Purpose of the cross structures above is to secure sufficient drainage capacity during/after flood in order to reduce adverse effect to the agricultural products. Required structure types and/or numbers of structures shall be determined based on hydrological analysis. In the further study/design stage, specific and careful estimate of flood water level should be made, and accordingly appropriate structural solution should be provided. (c) Major Expressway Facilities Major expressway facilities, 1) Typical cross sections, 2) Expressway facilities plan, and 3) ITS facilities plan, were as shown below: [...]... 5 6 7 8 9 10 11 12 10 Land Acquisition and Resettlement 2008 5 20 4 Consulting Service (64 months) Consulting Service (64 months) Detailed Design (15months) Detailed Design (15months) Tendering Assistance (39 months) Tendering Assistance (39 months) Construction Supervision (38 months) Construction Supervision (38 months) Detailed Design Package 1 (Civil Works, Danang, 8km) Package 2A (Civil Works,... Quang Ngai, 31.5km) Package 4 (O&M and ITS Works, 131km) Package 5 (O&M Vehicles, 131km) 15 12 12 12 12 12 9 7 Tendering Assistance 39 Construction Supervision Construction Supervision Training 38 37 6 Procurement of Contractors (Civil) PQ Advertisement, Evaluation and JBIC Concurrence JBIC Concurrence on Bidding Documents Bidding Bidding Evaluation and JBIC Concurrence Contract Negotiation and JBIC Concurrence... Quang Ngai Operation Office 12 people Traffic Road Operation Maintenance Unit 12 Unit 8 ＩＴＳ Maintenance Unit 8 Dac To Toll Office 172 Quang Ngai Toll Office 108 Tinh Son Toll Office 108 Figure S-9 O&M organization proposed for Da Nang - Quang Ngai expressway at the beginning (e) Environmental Considertaions The Project is categorized as “Category A” in the JBIC Guideline on the Environmental Social Considerations... Program (I/P) Considering the project components proposed and jurisdiction of the project site, seven (7) contract packages are proposed, six (6) construction packages and one (1) procurement package Subsequently, based on the contract packages and following the standard time of procurement procedure under Japanese ODA Loan, a project Implementation Program (I/P) was proposed Table S-6 Proposed Contract... 2,057 39,415 (2) Economic and Financial Analysis (a) Economic Analysis Economic analysis was carried out based on the traditional cost-benefit analysis All the costs (and benefits as well) were converted into the economic terms applying the Standard Conversion Factor (SCF=0.85) which is generally used in Vietnam Quantified benefits which will be generated from the Da Nang - Quang Ngai expressway are the... Japanese Companies The Project is located along the beach line in the central Vietnam where mountenious terrain exists neat to the Pacific Ocean Because of this location, construction to the expressway requires highly consideration of topographical and geological variables and it is similar to the construction condition of the expressways in Japan Four (4) locations of large-scaled bridges, road tunnel,... country, that of Vietnam and Japan is similar as very long for North-South direction and narrow for East-West direction, and natural conditions like climate, geology and rainfall and typhoon, Japanese technology of construction and operation of expressway should be the most suitable application to Vietnam 8 Location of the Project Refere to Project Location Map ... 2) standards necessary for O&M work, 3) O&M organization, 4) facilities and equipment, and 5) agreement concerned with enforcement and regulation providing authority of road or traffic administrators, and all of those must be sufficiently prepared before the expressway open to the public In this study, Level of Service (LOS), O&M orzanization, facilities and equipment for the Da Nang-Quang Ngai expressway. .. Savings in Travel Time Costs (TTC) Results of economic evaluation are summarized as below: Table S-8 Result of the Economic Evaluation Evaluation Indicators Values 18.2% EIRR VND8,592,659Mil NPV (*) 2.20 B/C (*) (*): Discount Rate = 12% The above results indicate that the implementation of Da Nang - Quang Ngai expressway is economically feasible with values of Economic Internal Rate of Return (EIRR) higher... Mitigation Measures ** (3) Noise and Vibration to the Affected People (1) EIA and Environmental Permits (1) Air Quality 1 Permits and Explanation ** 3 Natural Environment 4 Social Environment (5) Ethnic Minorities and Indigenous - People (1) Impacts during Construction ** (2) Monitoring * 5 Other Legend: -: no impacts *: minor impacts **: middle impacts ***: serious impacts 5 Implementation Program . Study on Economic Partnership Projects in Developing Countries in FY2007 Study on Da Nang-Quang Ngai Expressway Project in the Socialist Republic of Vietnam ( Project Operation Approach. industrialization of Da Nang - Quang Ngai Industrial Corridor by functioning as logistic artery. Construction of Da Nang - Quang Ngai Expressway is essential for the socio-economic development. investigation at the end of February 2007. Da Nang - Quang Ngai Section of the North-South Expressway was nominated as one of eight (8) sections of the expressway to be built by Japanese ODA by