study on da nang-quang ngai expressway

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.. Necessit

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

(km)

Nos of Lanes

Cost (MUSD)

Start Construction

5 HCMC - Long Thanh - Dau Giay 55 6-8 618+562 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 Northward

Total 9,965 vehicles/day

2,341 vehicles/day (23.5%)

3,273 vehicles/day (32.8%)

Quang Ngai City and Southward

Other intera traffic

3,944 vehicles/day (39.6%)

407 vehicles/day (4.1%)

Da Nang City and North

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

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

3

NPV (Discount Rate =

4

B/C (Discount Rate =

625 in Quang Ngai)

2@(0.75m+3.75m), Median: 2.0m)

Length: 14,520.3m

ITS Facilities

2 Throughway Toll Barriers, Traffic Management Facilities, 2 Service Areas,

3 Traffic Management Centers, 7 Expressway Bus Stops

(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)

case is required

pavement case is required

(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

Major expressway facilities, 1) Typical cross sections, 2) Expressway facilities plan, and 3) ITS facilities plan, were as shown below:

Figure S-6 Typical Cross Sections

Figure S-7 Proposed Expressway Facility Plan

IC-3

KM64+320 IC-4

IC-5

IC-6

IC-7

KM126+046 IC-8

KM55+000

KM124+000

: Parking Area

Meteorologic

al Sensor

Traffic Detector

CCTV Camera

Overload Monitoring

Emergency

Telephone

Variable Message Sign (VSM)

Variable Speed Limit

Sign Highway Radio

ETC &

Manual Toll

Collection

Others

x2

Every 5 km

Every 5 km

Communicat

ion Network

ON

OFF OFF

OFF OFF

OFF OFF

OFF

OFF

OFF OFF

Every 5 km at each lane

Every 5 km at each lane

ETC MTC x2 ETC MTC x2

MTC x4 MTC x4

MTC x4 MTC x4

MTC MTC

MTC x4 MTC x4

MTC MTC MTC x2

x2 x2

MTC x4 ETC MTC ETC MTC x2

x2

Local Network [Fiber Optic (SM) and Metallic Cable]

x3

x3

x4

x4

x4

x4

x4

x4

x4

x4

x2 x2 x2

x4 x4

x3 x3

x2

x2 Every 2 km

x2

x2 Every 2 km

x2

x2 Every 2 km

x2

x2 Every 2 km

ONx2

x2

OFF

x2

To be covered all area

x4

x4

Wireless

x2

VICS

: Service Area

KM127+000 KM105+000

KM105+000

KM70+000 KM70+000

KM45+000 KM13+000

Center

Future Plan

Future Plan

Figure S-8 Proposed ITS Facility Plan

(d) Operation and Maintenance (O&M) Plan

As essential elements for O&M on expressways are; 1) institutions concerned with expressway project, 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 were proposed

Da Nang ETC Service

Center

9 people

Traffic Operation Unit 12

Da Nang Operation Office

12 people

Tam Ky Operation Office

4 people

Quang Ngai Operation Office

12 people

Road Maintenance Unit 8

ＩＴＳ Maintenance Unit 8

Da Nang Toll Office 108

Ben Den Toll Office 108

Qui Xuan Unit Office 108

Road Maintenance Unit 8

ＩＴＳ Maintenance Unit 8 Tam Ky

Toll Office 108

Nui Tinh Toll Office 108

Dung Quat Toll Office 76

Traffic Operation Unit 12

Road Maintenance Unit 8

ＩＴＳ Maintenance Unit 8 Dac To

Toll Office 172

Tinh Son Toll Office 108

Quang Ngai Toll Office 108

Da Nang Traffic

Control Center

46 people

Card

Unit

6

ＯＢＵ Unit 6 Service

Unit

6

Account Unit 6

Da Nang Operation Center

27 people

Figure S-9 O&M organization proposed for Da Nang - Quang Ngai expressway at the beginning

The Project is categorized as “Category A” in the JBIC Guideline on the Environmental Social Considerations Confirmation because of being a road construction project causing large scale involuntary resettlement Table S-5 shows preliminary screening results in this study It was confirmed that there is no serious level impacts to the environment

Table S-5 Screening Result of the Project

1 Permits and Explanation

to the Affected People

People

-

5 Other

Legend: -: no impacts *: minor impacts **: middle impacts ***: serious impacts

5 Implementation 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 Packaging

2 Large Bridges

1 Tunnel

and Equipment

0-131 131

5 7 9 10 11 12 1 3 5 7 9 10 11 12 1 3 5 7 9 10 11 12 1 3 5 7 9 10 11 12 1 3 5 7 9 10 11 12 1 3 5 7 9 10 11 12 1 3 5 7 9 10 11 12 1 3 5 7 9 10 11 12

Japanese ODA Loan Procedure

Appraisal

Loan Agreement

L/A in Effect

Selection of Supervising Consultant

Advertisement, Bid, Selection, and JBIC Concurrence 10

Consulting Service (64 months)

Detailed Design (15months)

Tendering Assistance (39 months)

Construction Supervision (38 months)

Package 1 (Civil Works, Danang, 8km) 12

Package 2A (Civil Works, Quang Nam 1, 27km) 12

Package 2B (Civil Works, Quang Nam 2, 35km) 12

Package 2C (Civil Works, Quang Nam 3, 29.5km) 12

Package 3 (Civil Works, Quang Ngai, 31.5km) 12

Package 4 (O&M and ITS Works, 131km) 9

Package 5 (O&M Vehicles, 131km) 7

PQ Advertisement, Evaluation and JBIC Concurrence 3

JBIC Concurrence on Bidding Documents 1

Bidding Evaluation and JBIC Concurrence 2.5

Contract Negotiation and JBIC Concurrence 3

Procurement of Contractors (O&M Vehicles) 15

Construction Works

Package 1 (Civil Works, Danang, 8km) 24

Package 2A (Civil Works, Quang Nam 1, 27km) 36

Package 2B (Civil Works, Quang Nam 2, 35km) 30

Package 2C (Civil Works, Quang Nam 3, 29.5km) 30

Package 3 (Civil Works, Quang Ngai, 31.5km) 36

Package 4 (O&M and ITS Works, 131km) 24

Package 5 (O&M Vehicles, 131km) 12

2015 2012

DURATIO N

Detailed Design (15months)

Tendering Assistance (39 months)

Construction Supervision (38 months) Consulting Service (64 months)

Figure S-10 Proposed Project Implemetation Program