wb-inland waterways and port rehabilitation project

Document of The World Bank Report No. 16599-VN SOCIALIST REPUBLIC OF VIETNAM INLAND WATERWAYS AND PORT REHABILITATION PROJECT STAFF APPRAISAL REPORT September 25, 1997 Transport Sector Unit East Asia & Pacific Region CURRENCY EQUIVALENTS (As of September 1997) Cunrency Unit = Vietiiamese Dong (VND) VND1 .0 = tISSo.(((()} US$1i0Q) = ND-l) I 1600 WEIGHTS AND MEASURES dwt - Dead Weight Ton ha - Hectare km - Kilometer LAD - Least Available Depth LLW.L - Loxvest Lowv Water Level ABBREVIATIONS AND ACRONYMS ADB - Asia Development Bank ASS - Acid Sulfate Soil CAS - Cotutry Assessment Strategv CIDA - Canadian International Developmeint Agency DMS - Detailed Measurement Survey EIA - Enviroiunental Impiact Assessmenit EMAP - Environmental Management Action Plan EPC - Enviromnenital Protection Center EPZ - Export Processing-Zone FFCTU - Faculty of Fisheries at Can Tho University GDP - Gross Domestic Product GOV - Government of Vietnam HCMC - Ho Chi Minh City ICB - Intemnational Competitive Bidding IDA - International Development Agency IRR - Internal Rate of Retum IWTC - Inland Watervay Transport Cost JICA - Japan International Cooperation Agency IvIDMP - Mekong Delta Master Plan MOF - Ministry of Finance MOT - Ministry of Transport and Comuniuliications MPI - Ministry of Planning and Investment NCB - National Competitive Bidding NPV - Net Present Value O&M - Operations and Maintenance ODA - Overseas Development Administration (UK) OECF - Overseas Economic Cooperation Ftund of Japan PAF - Project Affected Families PC - People's Commuiittee PMSTE - Provincial Science, Tecilmologv and Envirolunmenlt Department PMU-SW - Project Management Unit of Southern Waterways RAP - Resettlement Action Plan SBV - State Bank of Vietnam SMS - Service of Maritime Safety TDSI - Transport Development Strategy Institlute TSR - Bank Transport Sector Review- UNDP - United Nations Development Programmlie Vinamarine - Vietnam Maritime Administration Vinawaco - Vietnam Waterway Construction Corporation VJWA - Vietlnam Inland Watervays Administration VIWA/SD - Vietnam Inland Waterways Adminiistratioln/Soutleem Department FISCAL YEAR January 1 to December 31 Vice President: Jean-Michel Severino- EAPVP Country Director: Andrew Steer, EAC VT Sector Manager: Jeffrey Gutman, EASTR Task Team Leader: Jitendra N. Baipai, EASTR SOCIALIST REPUBLIC OF VIETNAM INLAND WATERWAYS AND PORT REHABILITATION PROJECT Credit and Project Summary Borrower: Socialist Republic of Vietnam Implementing Agency: Ministry of Transport and Communications, through Project Management Unit - Southern Waterways, Vietnam Inland Waterways Administration Beneficiary: Can Tho Port Enterprise Poverty: Not applicable Amount: SDR 53.7 million (US$73.0 million equivalent) Terms: Standard IDA terms, with a maturity of 40 years including 10 years' grace On-lending Terms: For the Can Tho Port component, US$1.1 million will be on-lent to Can Tho Port Enterprise for 20 years, including 5 years' grace, at a fixed interest rate of 13.2 percent, repayable in local currency Commitment Fee: 1/2 of 1 percent on undisbursed credit balances, beginning 60 days after loan signing, less any waiver Financing Plan: See paras. 3.23-3.25 Net Present Value: US$83 million at 10 percent discount rate on 93.5 percent (or US$65 million) of total project cost (excluding taxes and price contingencies) and ERR of 27 percent Map: IBRD Map No. 28466 Project IID No.: 4843 [...]... 2.35 The proposed project will benefit from these initiatives and will initiate capacity building for project formulation and implementation in the inland waterways sector 2.36 Lessons from Bank Experience Bank experience in inland waterways projects in Asia (Bangladesh, China, Myanmar and Thailand) suggests that the viability of inland waterway projects depends critically on the waterways' ability... licensingrestrictionsand allowing private transport enterprises and own-account operators (including military) to provideboth cargo andpassengertransport; Commercializingstate transport enterprises and abolishing their direct operatingsubsidies; Allowing the establishment of private transport enterprises and private participation transportinfrastructure in investment operations; and Reorganizingthe Ministry of Transport... design and evaluation of related economic, social and environmentalaspects The project is a prototype of the comprehensivepackage of actionsand improvements requiredto modernize inlandwaterways Furthermore,through the project, IDA will support the introductionof modem technologyand implementation of efficient methods of waterway managementand operations (through training and technicalassistance) 3 THE PROJECT. .. to maintenance, enforcement, and routine operations and management of the Mekong Delta waterways to the Vietnam Inland Waterways Administration/Southern Department (VIWA/SD), established in 1993 and situated in HCMC.' VIWA/SD manages about 2,327 km of rivers and canals in the south, including the project waterways It also is responsible for: regulating waterborne transport and facilities (in cooperation... Tho and Cai San The proposed navaid system integrates a maritime buoyage system for main sea-going routes (LALA based) and the SIGNI-based markings for the inland waterways The navaids will consist of large and small light buoys, high and low beacons, canal bank lights, bridge and pier lights and appropriate channel, bank, shoal and obstruction markers and instruction signs 3.11 Component A-5: Landing... one river port, a workshop and a navigation training center Provincial authorities also manage a few companies, and some government ministries and state-owned enterprises have their own fleets and ports In addition, there are several state-owned sea -and- river transport companies 2.22 Supporting Institutions There are several institutions and facilities under VIWA that support the staff needs of sector... Capacity and Efficiency The three key components of the Mekong waterwayssystem- waterways, fleet and cargo handling- requireimmediate attention Otherwise, their capacity constraints will affect the regional and national economy and divert significant traffic to higher-cost roads For long-haul bulk traffic, waterways remain the most economical, energy-efficient and environmentally desirable mode of transportation... shortdistancesand a costdisadvantage long distances Source:NEDECO,ibid on -10- D INSTITuTIONAL FRAMEWORK 2.12 Policy and Oversight The Vietnam Inland Waterways Administration (VIWA) was established in 1993 under MOT to oversee inland waterways, river ports and shipping (see organization chart, Annex 1, Figure Al 1).6 VIWA is responsible for formulating and administering sector policies and regulations;... Director General has been seconded from VIWA and is supported by a Deputy Director General and 28 staff PMU-SW reports to MOT and VIWA 2.14 Waterway Operations and Maintenance VIWA has sole responsibility for the administration, management, maintenance, standards and safety of state-controlled waterways and, with MOT oversight, for planning, designing and implementing all major capital works 2.15 VIWA... the project waterways; (b) increase in throughput of the Can Tho Port; (c) financial performance of Can Tho Port, in terms of increased operating profits; and (d) staff-weeks of training and the number of VIWA and VIWA/SD staff trained under the project (Annex 2) In addition, a set of indicators has been defined to measure progress on project works (Annex 7B), resettlement activities (Annex 4) and . OF VIETNAM INLAND WATERWAYS AND PORT REHABILITATION PROJECT Contents Page 1. SECTORAL CONTEXT 1 A. ECONOMIC CONTEXT AND TRANSPORT DEMAND 1 B. TRANSPORT INFRASTRUCTURE 1 C. TRANSPORT SECTOR INVESTMENT. of The World Bank Report No. 16599-VN SOCIALIST REPUBLIC OF VIETNAM INLAND WATERWAYS AND PORT REHABILITATION PROJECT STAFF APPRAISAL REPORT September 25, 1997 Transport Sector Unit East. Andrew Steer, EAC VT Sector Manager: Jeffrey Gutman, EASTR Task Team Leader: Jitendra N. Baipai, EASTR SOCIALIST REPUBLIC OF VIETNAM INLAND WATERWAYS AND PORT REHABILITATION PROJECT Credit and