study on private-initiative … on private-initiative infrastructure projects in developing...

STUDY ON PRIVATE-INITIATIVE INFRASTRUCTURE PROJECTS IN DEVELOPING COUNTRIES IN FY2010

STUDY ON RING ROAD NO. 4 PROJECT (TRUNG GIA – PHUNG SECTION)

IN THE SOCIALIST REPUBLIC OF VIETNAM

FINAL REPORT

March 2011

Prepared for: The Ministry of Economy, Trade and Industry

Prepared by: Ernst & Young ShinNihon LLC

Japan External Trade Organization (JETRO) Nippon Engineering Consultants Co., Ltd.

Central Nippon Expressway Co., Ltd. Nippon Steel Topy Bridge Co., Ltd.

Shimizu Corporation

Preface

This report constitutes the summarized results of the “Study on Private-Initiative Infrastructure Projects in Developing Countries in FY2010” which was entrusted by Ernst Young ShinNihon LLC to Nippon Engineering Consultants Co., Ltd., Central Nippon Expressway Co., Ltd., Nippon Steel Topy Bridge Co., Ltd., Shimizu Corporation. The “Study on Ring Road No. 4 Project (Trung Gia– Phung Section) in the Socialist Republic of Vietnam” aims to survey the feasibility of the Project on Trung Gia – Phung Section of Ring Road No. 4 in Hanoi by PPP Scheme. We hope this report will be helpful in realizing the Project and serve as a useful reference to all concerned parties in Japan.

March 2011

Nippon Engineering Consultants Co., Ltd. Central Nippon Expressway Co., Ltd.

Nippon Steel Topy Bridge Co., Ltd. Shimizu Corporation

Social Republic of Vietnam Hanoi City

Project Location Map

Start Point of the Study(Crossing with the Hanoi-Thai Nguyen Expressway)

Hanoi-Lao Cai Expressway

NH.2

NH.32

NH.6

NH

.1

NH.5

New

NH.1

NH.1

NH.18

NH

.3Hanoi-Thai Nguyen

Expressway

RR-4(N

orth

-wes

t Sec

tion)

Lang-Hoa Lac Road

New

NH

.1

Crossing with theHanoi-Lao Cal Expressway Bac Giang

Thai Nguyen

Hanoi

Bac Ninh

Hung Yen

Vinh Phuc

RR

-3 RR-2

Noi BaiInternational

Airport

Hai Phong→

Trung Gia

Phung

End Point of the Study(Crossing with the NH.32)

Hong Ha Bridge

NH.23

0 5 10km

Hanoi

ABBREVIATIONS

ASEAN Association of Southeast Asian Nations ODA Official Development Assistance

BMS Bridge Management System OR Operations Research

BOD Biochemical Oxygen Demand PC Pre-stressed Concrete

BOT Build, Operation & Transfer PCU Passenger Car Unit

BT Build, Transfer PE Polyethylene

CDL Chart Datum Level PMU2 Project Management Unit 2

CDM Clean Development Mechanism PPP Public Private Partnership

DD, D/D Detailed Design PRs Provincial Roads

EIA Environmental Impact Assessment PVD Plastic Vertical Drain

ETC Electronic Toll Collection QC Quality Control

EU European Union RC Reinforced Concrete

FS, F/S Feasibility Study RMS Road management System

GDP Gross Domestic Production S/V Supervision

HAPI Hanoi Authority of Planning & Investment SD Sand Drain

HPC Hanoi People’s Committee SDP Suspended Dust Particle

IC Interchange SPC Special Purpose Company

IE Industrial Engineering TEDI Transport Engineering Design Incorporated

IEE Initial Environmental Examination VGF Viability Gap Funding

IMF International Monetary Fund VND Vietnam Dong

JBIC Japan Bank for International Cooperation VSA Vietnam Steel Association

JETRO Japan External Trading Organization WTO World Trade Organization

JICA Japan International Cooperation Agency

JV Joint Venture

LCC Life Cycle Cost

LSD Land Survey Datum

MARD Ministry of Agriculture and Rural Development

MONRE Ministry of Natural Resources & Environment

MOT Ministry of Transport

MPI Ministry of Planning & Investment

NH National Highways

O&M Operation & Maintenance

i

Table of Contents Preface Project Site Map Abbreviations Executive Summary Chapter 1 Overview of the Host County and Sector.....................................................1- 1

1.1 Economic and Financial Conditions .......................................................................1- 1 1.1.1 Economic Conditions .................................................................................................................1- 1 1.1.2 Industrial Structure .....................................................................................................................1- 2 1.1.3 Foreign Trade .............................................................................................................................1- 3 1.1.4 Investments.................................................................................................................................1- 3 1.1.5 National Finance ........................................................................................................................1- 5

1.2 Overview of Relevant Sectors.................................................................................1- 6 1.2.1 Modes of Transport ....................................................................................................................1- 6 1.2.2 Road Sector ................................................................................................................................1- 7 1.2.3 Railroad Sector...........................................................................................................................1- 8 1.2.4 Port Sector ..................................................................................................................................1- 9 1.2.5 Hanoi Ring Road Master Plan...................................................................................................1-11 1.2.6 Construction Plan for Hanoi Ring Road 4.................................................................................1-11 1.2.7 The rail network centered on Hanoi ..........................................................................................1-12

1.3 Situation in the target area......................................................................................1-13 1.3.1 Social condition of the target area .............................................................................................1-13 1.3.2 Natural conditions in the target area..........................................................................................1-14 1.3.3 Economy of the target area........................................................................................................1-14 1.3.4 Key Development Plans ............................................................................................................1-17

Chapter 2 Study Methodology.........................................................................................2- 1

2.1 Details of Survey.....................................................................................................2- 1 2.2 Survey Organization................................................................................................2- 2 2.3 Study Method ..........................................................................................................2- 3

2.3.1 Project Plan ................................................................................................................................2- 3 2.3.2 Traffic Demand Forecasts ..........................................................................................................2- 3 2.3.3 Road Plans..................................................................................................................................2- 3 2.3.4 Bridge Plans ...............................................................................................................................2- 3 2.3.5 Construction Plans and Cost Estimation ....................................................................................2- 4 2.3.6 Studies of Environmental and Social Aspects ............................................................................2- 4

2.4 Study Schedule ........................................................................................................2- 5 2.4.1 Overview ....................................................................................................................................2- 5 2.4.2 Field Survey ...............................................................................................................................2- 6 2.4.3 Domestic Survey ........................................................................................................................2- 7 2.4.4 Debriefing Session .....................................................................................................................2- 7

ii

Chapter 3 Justification, Objectives and Technical Feasibility of the Project .............3- 1 3.1. Background and necessity.......................................................................................3- 1

3.1.1. Project background.....................................................................................................................3- 1 3.1.2. Project necessity.........................................................................................................................3- 1 3.1.3. Comparison between the proposed project and alternatives.......................................................3- 2

3.2 Examination Necessary for Defining Project Content ............................................3- 4 3.2.1 Existing Reports .........................................................................................................................3- 4 3.2.2 Traffic demand forecast..............................................................................................................3- 7 3.2.3 Analysis on Obstacle for the Project .........................................................................................3-14 (1) Route Study ...............................................................................................................................3-14 (2) Topography and geology ...........................................................................................................3-20 (3) River and hydrological study ....................................................................................................3-21 (4) Other natural condition..............................................................................................................3-25 3.2.4 Examination on technical method .............................................................................................3-28

3.3 Outline of the Project .............................................................................................3-76 3.3.1 Basic Policy for Defining Project..............................................................................................3-76 3.3.2 Concept Design and the Use of Appropriate Equipment...........................................................3-81 3.3.3 Project Cost ...............................................................................................................................3-88

Chapter 4 Evaluation of Environmental and Social Aspects........................................4- 1

4.1. Analysis of the current conditions from environmental and social aspects ............4- 1 4.1.1. Analysis of the current conditions..............................................................................................4- 1 4.1.2. Future forecast (without Project)................................................................................................4- 5

4.2. Environmental improvement effects associated with implementation of the project4-6 4.2.1. Natural and living environments ................................................................................................4- 6 4.2.2. Social environment.....................................................................................................................4- 8

4.3. Impact of the project from environmental and social aspects .................................4- 9 4.3.1. Impact of construction and operation of the project on environmental and social aspects ........4- 9 4.3.2. Comparison between the proposed project and other options with less environmental impact 4-14 4.3.3. Discussions with the implementing agency and collecting information local experts ..............4-14

4.4. Overview of the environment- and society-friendly laws and regulations in the partner country ......................................................................................................4-16

4.4.1. Overview of environment- and society-friendly laws and regulations related to the implementation of the project .........................................................................................................4-16

4.4.2. Details of EIA, etc. of the partner country required to implement the project ..........................4-19 4.5. What the Vietnam government should implement to realize the project ...............4-21

4.5.1. Completion of an EIA report .....................................................................................................4-21 4.5.2. Discussion with local residents .................................................................................................4-21

Chapter 5 Financial and Economic Evaluation.............................................................5- 1

5.1 Project Cost .............................................................................................................5- 1 5.2 Outline of the Result of Preliminary Financial and Economic Analysis.................5- 4

5.2.1 Calculation basis for FIRR.........................................................................................................5- 4 5.2.2 Case setting to be analyzed in PPP scheme for implementing construction project...................5- 5 5.2.3 Result of preliminary financial analysis .....................................................................................5- 7 5.2.4 Result of calculation of Economical Internal Rate of Return（EIRR）...................................5-19

iii

Chapter 6 Planned Project Schedule ..............................................................................6- 1 Chapter 7 Implementing Organization ..........................................................................7- 1

7.1 Overview of Implementation Agency in Partner Country ......................................7- 1 7.2 Organizational Structure for Project Implementation in Partner Country...............7- 3

Chapter 8 Technical Advantages of Japanese Companies............................................8- 1

8.1 Expected Forms of Participation by Japanese Companies......................................8- 1 8.2 The advantages afforded by Japanese technologies ................................................8- 3 8.3 Measures Necessary to Enhance Competitiveness of Japanese Companies ..........8-10

8.3.1 Systems to Subsidize Costs Required for Participation in International Competitive Bids .......8-10 8.3.2 Funds for Bidding Expense Subsidy System..............................................................................8-11

8.4 Japanese Company’s Image in the Special Purpose Company established in Vietnam .........................................................................................................................8-12

Chapter 9 Financial Outlook...........................................................................................9- 1

9.1 Examination on Funding Resource and Financing Plan .........................................9- 1 9.2 Feasibility of Financing...........................................................................................9- 2 9.3 Analysis of Cash Flow ............................................................................................9- 3

9.3.1 Precondition ...............................................................................................................................9- 3 9.3.2 Result of Case Flow ...................................................................................................................9- 5

Chapter 10 Action Plans and Issues for PPP Projects ..................................................10- 1

10.1. The situation regarding implementation of this project ........................................10- 1 10.2. Measures which will be necessary for the implementation of this project ...........10- 2

10.2.1. Investment in the Vietnamese government’s VGF ...........................................................10- 2 10.2.2. The establishment of objective assessment criteria for international competitive tendering on

the Vietnamese side ....................................................................................................................10- 2 10.2.3. Flexible application of BT and BOT schemes..................................................................10- 3 10.2.4. Toll policy, taking other road tolls into account ...............................................................10- 3 10.2.5. Measure for Delay of land acquisition .............................................................................10- 4

10.3. Specific Action Plan and Issues for the Implementation of This Project..............10- 5 10.3.1. Action Plan and Issues on the Vietnamese Side ...............................................................10- 5 10.3.2. Action Plan and Issues on the Japanese Side ...................................................................10- 6

10.4. Results of the PPP Project Fact-finding Survey in Viet Nam ...............................10- 7 10.4.1. BITEXCO (Binh Minh Production Management and Import/Export Company), Hanoi

Office ..........................................................................................................................................10- 7 10.4.2. VINACONEX (Vietnam Construction and Import-Export Joint Stock Corporation), Ha Noi

Headquarters ..................................................................................................................................10- 9 10.4.3. Him Lam Corporation Hanoi Branch ..............................................................................10-10

Appendices

Appendix A: Minutes of Discussion Appendix B: Minutes of Discussion with local Environmental Consultant Appendix C: Photos on the Project Site

iv

Figure 1-1 GDP Growth in Viet Nam.................................................................................................... 1- 2 Figure 1-2 New Urban zone North An Khanh....................................................................................... 1-17 Figure 1-3 Van Giang tourism-trading urban zone................................................................................ 1-18 Figure 1-4 Tu Son Town - Bac Ninh Province ...................................................................................... 1-19 Figure 1-5 Hoa Lac Hi-tech zone .......................................................................................................... 1-20 Figure 1-6 Quang Minh IZ .................................................................................................................... 1-20 Figure 1-7 Pho Noi IZ ........................................................................................................................... 1-21 Figure 1-8 Que Vo IZ ............................................................................................................................ 1-22 Figure 2-1 Flow Chart of Survey .......................................................................................................... 2- 1 Figure 2-2 Structure of the Study Team ................................................................................................ 2- 2 Figure 3-1 Location of Traffic Survey................................................................................................... 3- 7 Figure 3-2 Route Outline........................................................................................................................3-15 Figure 3-3 (a) Route Survey......................................................................................................................3-18 Figure 3-3 (b) Route Survey......................................................................................................................3-19 Figure 3-4 Diagram of Relation between Water level and Discharge of Hong Ha Bridge.....................3-23 Figure 3-5 Hong Ha Bridge’s location and alignment in the aerial map ................................................3-32 Figure 3-6 Options for Hong Ha Bridge ................................................................................................3-36 Figure 3-7 Cross Section of PC Box Girder...........................................................................................3-36 Figure 3-8 Cross Section for Cable-Stayed Bridge ................................................................................3-38 Figure 3-9 Guideline for unpainted use of weathering steel ..................................................................3-39 Figure 3-10 Concept of Relation between Time and Rust Developing ................................................3-40 Figure 3-11 Photo samples for estimating status of rust developed .......................................................3-40 Figure 3-12 Cross Section for Extradosed Bridge..................................................................................3-41 Figure 3-13 An Example of Cantilever Erection Method ......................................................................3-41 Figure 3-14 An Example of Large-Scale Segment Block ......................................................................3-41 Figure 3-15 Concept of PC Box girder Bridge with Corrugated Steel Web Plate..................................3-42 Figure 3-16 Concept for Steel Pipe Sheet Pile Foundation ....................................................................3-44 Figure 3-17 Cross Section for the Approach Bridge(Super T shaped PC bridge) ..................................3-45 Figure 3-18 Cross Section for the Approach Bridge (Portion of the crossing dyke)..............................3-45 Figure 3-19 Steel pipe pile foundations..................................................................................................3-50 Figure 3-20 Steel pipe piles for temporary enclosure on the Thanh Tri Bridge .....................................3-50 Figure 3-21 PC Box Girder Erection Procedure.....................................................................................3-51 Figure 3-22 Example of Erection of a Steel Cable-stayed Bridge (Nhat Tan Bridge)............................3-51 Figure 3-23 An Example of Extradosed Bridge Construction ...............................................................3-52 Figure 3-24 Total Frame of RMS ...........................................................................................................3-64 Figure 3-25 The BMS Concept ..............................................................................................................3-68 Figure 3-26 Road transverse sectional composition (expressway, urban zone) .....................................3-81 Figure 3-27 Road Transverse Sectional Composition (Expressway, Non-urban Zone) .........................3-82 Figure 3-28 Road Width Configuration (highway, general section).......................................................3-82 Figure 3-29 Transverse Sectional Composition (highway, residential zone) .........................................3-83 Figure 3-30 Cross section of bridge in main line ...................................................................................3-85 Figure 3-31 Bridge cross section for urban road bridge.........................................................................3-85 Figure 3-32 Cross section of the viaduct for main line ..........................................................................3-86 Figure 3-33 Bridge cross section for section 3.......................................................................................3-87

v

Figure 3-34 Cross section for the Hong Ha bridge.................................................................................3-87 Figure 4-1 BOD（mg/ 1） ................................................................................................................... 4- 1 Figure 4-2 NH4（mg/ l） ..................................................................................................................... 4- 1 Figure 4-3 CO（μg/m3） ................................................................................................................... 4- 4 Figure 4-4 NO2（μg/m3） ................................................................................................................. 4- 4 Figure 4-5 SO2（μg/m3）.................................................................................................................. 4- 4 Figure 4-6 Formula to calculate CO2 emissions by motor vehicles...................................................... 4- 6 Figure 4-7 Original unit of emission and travel speed .......................................................................... 4- 7 Figure 4-8 Flow for analyzing emission of CO2................................................................................... 4- 8 Figure 5-1 Indexes of lending interest rate, inflation rate etc., in Vietnam ........................................... 5- 4 Figure 5-2 Studied Section .................................................................................................................... 5- 5 Figure 5-3 Comparing Time and Distance with and without RR4 ........................................................ 5- 5 Figure 7-1 Organizational Structure of the Hanoi People’s Committee ............................................. 7- 2 Figure 7-2 Organizational Structure for PPP Projects ........................................................................... 7- 3 Figure 8-1 Schematic view of steel pipe sheet pile foundation............................................................. 8- 5 Figure 8-2 Yearly Construction of Steel Pipe Sheet Pile Foundations .................................................. 8- 6 Figure 8-3 Mihara Bridge...................................................................................................................... 8- 6 Figure 8-4 Prefabricated Parallel Wire Strand and Indented Surface Treatment................................... 8- 7 Figure 8-5 Trend of Weather Resistant Steel......................................................................................... 8- 9 Figure 8-6 Project Implementation System in Case 5 ........................................................................... 8-13 Figure 8-7 Project Implementation system under PPP scheme as usual ............................................... 8-14 Figure 9-1 Assumed Project Scheme .................................................................................................... 9-3 Figure 9-2 Financing method (case 2)................................................................................................... 9-4

vi

Table 1-1 Industrial Composition in Vietnam (%) ................................................................................ 1- 2 Table 1-2 Exports and Imports of Vietnam (million USD) ................................................................... 1- 3 Table 1-3 Trading Partners: 2005 (million USD) .................................................................................. 1- 3 Table 1-4 Investment Trends (‘00 million Yen)..................................................................................... 1- 4 Table 1-5 Investment Trends (trillion VND) ......................................................................................... 1- 4 Table 1-6 Foreign Direct Investment (Approval Basis) by Region (‘000 Yen) .................................. 1- 5 Table 1-7 National Budget Trends (trillion VND)................................................................................. 1- 5 Table 1-8 Passenger Transport: Modal Split and Growth...................................................................... 1- 6 Table 1-9 Cargo Transport: Modal Split and Growth............................................................................ 1- 6 Table 1-10 Total Extension and Density of Roads in Vietnam: 2006.................................................... 1- 7 Table 1-11 Expressway Routes to be Developed over the Short Term (2006 – 2015) ........................ 1- 8 Table 1-12 Main Railroad Lines: Extension and Track Gauge.............................................................. 1- 9 Table 1-13 Major Port Complexes in Vietnam...................................................................................... 1-10 Table 1-14 Economic Growth and GDP of the Target Area and the Country........................................ 1-15 Table 1-15 Production Value From Each Segment of Economic Structure in the Survey Target Area . 1-16 Table 1-16 Power Projects up to 2025................................................................................................... 1-23 Table 2-1 Overall Survey Schedule....................................................................................................... 2- 5 Table 2-2 Itinerary for the Field Survey ................................................................................................ 2- 6 Table 2-3 List of Persons with whom Study Team had meeting ........................................................... 2- 7 Table 2 4 Itinerary for the Debriefing Session in Hanoi........................................................................ 2- 8 Table 3-1 Comparison between the proposed project and alternatives ................................................. 3- 3 Table 3-2 Transition of volume of passengers carried by the road by province.................................... 3- 9 Table 3-3 Transition of volume freight by the road by province........................................................... 3-10 Table 3-4 Increase of GDP .................................................................................................................... 3-10 Table 3-5 Future traffic forecast ............................................................................................................ 3-12 Table 3-6 Future traffic forecast (by type of vehicle)............................................................................ 3-12 Table 3-7 Future traffic demand forecast at the seven bridges crossing Red River .............................. 3-13 Table 3-8 Water Levels for Design, observed at the Hanoi hydrological and meteorological observation

(1956-2001) .......................................................................................................................................... 3-22 Table 3-9 Record of Typhoons in Hanoi ............................................................................................... 3-26 Table 3-10 Record of Earthquakes in Vietnam...................................................................................... 3-27 Table 3-11 Interchange plan .................................................................................................................. 3-28 Table 3-12 Planned Countermeasures against Soft Ground .................................................................. 3-30 Table 3-13 Proposed Main Bridge Options by TEDI ............................................................................ 3-34 Table 3-14 Reconsidered main bridge plan with 3options .................................................................... 3-35 Table 3-15 Execution records of Extradosed Bridge(in Japan) ........................................................... 3-42 Table 3-16 Comparison of Cast in-situ concrete pile with Steel Pipe Sheet Pile Foundation ............... 3-43 Table 3-17 An outline of approach bridge of the Hong Ha Bridge ....................................................... 3-44 Table 3-18 (a) Iron and Steel Production in Vietnam (tons)..................................................................... 3-48 Table 3-18 (b) Cement Production in Vietnam (tons) ........................................................................... 3-48 Table 3-19 Target Route Planned Traffic Volumes (converted to PCU)................................................ 3-54 Table 3-20 Traffic Management/ Inspection/ Cleaning Frequencies..................................................... 3-55 Table 3-21 Paved Surface Repair Standards.......................................................................................... 3-55 Table 3-22 Traffic Management/ Inspection/ Cleaning Frequencies..................................................... 3-56

vii

Table 3-23 Paved Surface Repair Standards.......................................................................................... 3-56 Table 3-24 Traffic Management/ Inspection/ Cleaning Frequencies..................................................... 3-57 Table 3-25 Paved Surface Repair Standards.......................................................................................... 3-57 Table 3-26 Traffic Management/ Inspection/ Cleaning Frequencies..................................................... 3-58 Table 3-27 Paved Surface Repair Standards.......................................................................................... 3-58 Table 3-28 O&M Scope ........................................................................................................................ 3-59 Table 3-29 Operation & Maintenance Office Staff Allocation.............................................................. 3-60 Table 3-30 Personnel Allocation to Each Tollgate ................................................................................ 3-61 Table 3-31 Operation & Maintenance Office Vehicle Arrangement ..................................................... 3-62 Table 3-32 Daily inspection items (roads)............................................................................................. 3-63 Table 3-33 Maintenance Management Points and Deformation Corresponding to Numbers of Years

(Bridge structure) .................................................................................................................................. 3-69 Table 3-34 Maintenance Management Points and Deformation Corresponding to Numbers of Years

(Bridge appurtenant parts) .................................................................................................................... 3-70 Table 3-35 Maintenance Management Points and Deformation Corresponding to Numbers of Years (other

appurtenant equipment) ........................................................................................................................ 3-70 Table 3-36 Yearly Cost of O & M in Japanese Expressway.................................................................. 3-71 Table 3-37 (a) Comparison of inspection positions and methods for each inspection procedure on long-span

bridges, and inspection position and method proposals for this bridge (main bridge section) (1/2) ... 3-72 Table 3-37 (b) Comparison of inspection positions and methods for each inspection procedure on long-span

cable-stayed bridges, and inspection position and method proposals for this bridge (main bridge/ composite cable-stayed bridge) (2/2).................................................................................................... 3-73

Table 3-38 Comparison of inspection positions and methods for each inspection procedure on general (concrete) bridges, and inspection position and method proposals for this bridge (approach section/ PC elevated bridge) ................................................................................................................................... 3-74

Table 3-39 Comparison of inspection types and locations in the previous inspection procedure for use in the event of a disaster, and proposal for inspection types and locations for this bridge in the event of a disaster .................................................................................................................................................. 3-75

Table 3-40 Road Geometry Standards (expressway sections)............................................................... 3-76 Table 3-41 Road geometric standards (highway sections) .................................................................... 3-76 Table 3-42 Road Geometry Standards (urban road) .............................................................................. 3-77 Table 3-43 Total cost of the Oprion-1 ................................................................................................... 3-78 Table 4-1 Original unit of emission....................................................................................................... 4- 7 Table 4-2 Emission from construction .................................................................................................. 4- 7 Table 4-3 Houses on the proposed alignment........................................................................................ 4-11 Table 4-4 Summary of the JICA/JBIC Checklist .................................................................................. 4-13 Table 4-5 Comparison of the environmental impact ............................................................................. 4-14 Table 4-6 Environment- and society-friendly laws ............................................................................... 4-17 Table 4-7 Environment-related standards.............................................................................................. 4-18 Table 4-8 EIA overview ........................................................................................................................ 4-19 Table 5-1 Project Cost from Trung Gia to PhucYen (4 Lanes, L=17km) .............................................. 5- 1 Table 5-2 Project Cost from Phuc Yen to Phung（6 Lanes, L＝20km） .......................................... 5- 1 Table 5-3 Total Project Cost from Trung Gia to Phung（L=37km） ............................................. 5- 2 Table 5-4 Project Cost in Vietnamese Dong and Japanese Yen Currency............................................. 5- 2

viii

Table 5-5 Project Cost in Vietnamese Dong and Japanese Yen Currency............................................. 5- 3 Table 5-6 Indexes of lending interest rate, inflation rate etc., in Vietnam............................................. 5- 5 Table 5-7 Forecast of Traffic Amounts and Toll Revenue..................................................................... 5- 5 Table 5-8 Supposed 6 cases in PPP scheme for implementation of the project “ RR4 (37km)”..... 5- 6 Table 5-9 FIRR , Cash Flow in Case-0.................................................................................................. 5- 8 Table 5-10 Table 12 FIRR, Cash Flow in Case-1.................................................................................. 5-10 Table 5-11 FIRR, Cash Flow in Case-2................................................................................................. 5-12 Table 5-12 FIRR, Cash Flow in Case-3................................................................................................. 5-14 Table 5-13 FIRR, Cash Flow in Case-4................................................................................................. 5-16 Table 5-14 FIRR, Cash Flow in Case-5................................................................................................. 5-18 Table 5-15 Unit vehicle’s travel time cost per hour（USD/hour） ................................................... 5-20 Table 5-16 Unit vehicle operating cost (USD/car/1000km) .................................................................. 5-21 Table 5-17 Result of calculation EIRR, B/C and NPV.......................................................................... 5-22 Table 6-1 Assumed Schedule for the Proposed PPP Project ................................................................. 6- 2 Table 6-2 Implementation Schedule for Construction, etc. ................................................................... 6- 2 Table 6-3 Hong Ha Bridge Construction Schedule Using Yen Loan from JICA .................................. 6- 3 Table 8-1 Participation by Japanese Companies in Operation and Maintenance .................................. 8- 2 Table 8-2 Participation by Japanese Companies in Road and Bridge Construction.............................. 8- 2 Table 9-1 Forecasted traffic volume and revenue from toll fee............................................................. 9- 4 Table 9-2 Financial Cash Flow (Case 2) ............................................................................................... 9- 5

1

Executive Summary

(1) Background and Necessity

1) Project Background The Vietnamese government is developing the Ring Road (routes 1~3) with the aims of facilitating the

passage of traffic through the Hanoi capital region, alleviating congestion within the city, and improving

access from Hanoi to Noi Bai International Airport and the port and industrial parks etc. in Hai Phong. It

also plans to add a new Ring Road 4 (six lanes) outside route 3 to handle the rapid expansion of Hanoi.

The Hanoi Ring Road 4 project was included in the Master Plan written by the Ministry of Transport

(MOT). The plan was approved by the prime minister in 2008.

Within that project, the current survey covers the western portion (37km from Trung Gia to Phung)

within the whole length of Ring Road 4, which the Vietnamese government plans to give the highest

development priority. That section includes a long-span bridge of 5km which crosses the Red River, and

the challenge is to redeem the funds required for the development of the section, including the bridge,

funding procurement, formulation of the open management plan, and the related construction, operation

and management.

2) Project Necessity The aims for building the Ring Road are 1) to facilitate the flow of traffic passing through the Hanoi

capital region and relieve traffic congestion inside Hanoi, and 2) to improve access to central Hanoi, Noi

Bai International Airport, Hai Phong port and surrounding industrial parks. When the whole of Hanoi

Ring Road 4 is complete, it will have the following effects: 1) Facilitate transport between cities in the

north of Vietnam, and 2) relieve traffic congestion in Hanoi. In the period before completion, it can be

expected to create jobs for road construction along its 136km length. Before completion of the entire

route, the completion of a 37km section from Trung Gia to Phung will improve logistics and will provide

the following effects: 1) Promotion of the redevelopment to the north area of the Hong River (Thang

Long districts), and 2) Relaxation of the traffic jam of the Hanoi city as the Outer Ring Road. Once Ring

Road 4 is complete, it can also be expected to improve the environment in the city, by reducing noise and

atmospheric pollution.

(2) Considerations Necessary for Deciding on Project Details

1) Project Plan A project plan will be developed based on information gathered from various sources (including

pre-feasibility study materials obtained in advance, yearbooks covering Vietnam and the project area

which describe local socioeconomic conditions, data on current transportation and traffic conditions,

2

future development plans, and regional master plans) as well as the results of interviews with officials

from local government agencies and other organizations.

2) Traffic Demand Forecasts The final feasibility study for Ring Road No. 4 is currently being deliberated by the Vietnamese

government. In order to forecast future traffic volumes, it is necessary to confirm details of these

materials, but in this survey, future traffic demand will be analyzed referring to the results of

estimation in the feasibility study.

3) Road Plans The project team investigated control points such as geographical features, settlements, large-scale

facilities, buildings, and cemeteries which affect the horizontal alignment of the planned road. In

accordance with road structure standards in Vietnam, it also examined the appropriateness of the

horizontal and vertical alignment of the planned route as well as the cross-sectional structure of the

road. Furthermore, the team considered countermeasures against soft ground because areas with soft

ground are distributed along the section of the road between the point where it crosses the

Hanoi-Laocai Expressway and its terminal where it meets National Road No. 32.

4) Bridge Planning A number of options for the long-span Red River Bridge are studied in the feasibility study report

compiled by MOT. The project team analyzed the geological conditions in the vicinity of the area

where the bridge will be built and the results of hydrologic surveys for the river, a major feature that

crosses the road, referring to the results of the preliminary feasibility study carried out by TEDI, a

transport consultant firm under MOT’s control, those of design of the Nhat Tan Bridge, which is being

constructed on the downstream side of the Red River Bridge, and other materials.

The project team considered methods to improve several options that will be proposed in a

preliminary feasibility study by balancing in the main stream between the minimum span, which is

determined by the route width, and the number of sub and basic structures, which will be built on the

water, and analyzing the range that allows land construction during the dry season.

5) Cost Estimation Quantities are based on those that are newly designed for this project. In estimating costs, the

project team took into account recent sharp rises in the costs of raw materials, regional differences in

labor costs, and consumer price indexation referring to the past contract prices in Vietnam.

6) Studies of Environmental and Social Aspects The project team reviewed the interim report on initial environmental examinations (IEE) it had

obtained in advance. The information included in IEE was only basic, but the team tried to obtain

supplementary information by interviewing environmental consultants who had been engaged in the

3

compilation of the report. In addition, it confirmed through on-the-spot investigations the present

condition of the site where the road is planned and interviewed local residents. Based on the foregoing,

the project team forecast and examined the environmental impact that the project is expected to have

on the local community. Furthermore, it obtained information on and analyzed environment-related

laws and regulations.

(3) Project Outline

1) Outline and Project Cost 1)-1 Route and Road Plan

Hanoi Ring Road No.4 goes along Hanoi City and the neighboring provinces of Hung Yen, Bac

Ninh, the Bac Giang, and it is an outer belt line of about 136km length to cross three river portions of

Hong River and the branch on three long span bridges.

As for the road type, Expressway type with 6 lanes in the south section of NH.18 and Highway type

with 4 lanes in the north section of NH.18 are planned.

The study section starting at Trung Gia in Soc Son district of Hanoi City (intersecting with

Hanoi-Thai Nguyen expressway), passing between small hills of south-west area, going southward

along provincial road No.35, intersecting with Hanoi-Lao Cai expressway and NH.2, cutting Yen

Vien-Lao Cai railway by Hong Ha bridge, reaches the intersection with NH.32. Total length of the

study section is about 37 km.

Route outline of the study section is shown in Fig. 1.

The topography of the route has few ups and downs in both highway and expressway sections. In

addition, countryside is most through the whole. The plan route satisfies horizontal and vertical

alignment conditions throughout the whole.

4

Figure 1 Route Outline

118+7300.0

5.0

10.0

15.0

20.0

25.0

30.0

37.051

35.0

Hanoi-Thai Nguyen Expressway

Hanoi-Thai Nguyen RailwayNational Highway No.3

119+500119+750

Hanoi - Lao Cai Expressway- 1+451

National Highway No.20.0

Yen Vien - Lao Cai Railway2+600

National Highway No.235+800

Hong Ha Bridge North End8+960

Hong Ha Bridge South End13+400

18+940Natioal Highway No.32

Hong River

Trung Gia

Phuc Yen

Phung

Noi Dong

Bu Tri

Hig

hw

ay

(4 lan

es)

Exp

ress

way

(6 lanes)

[ KM ] [ Distance (km) ]

(16.67)

5

1)-2 Road Grade and Transverse Sectional Composition

a. Road Grade

The road grade for Ring Road 4 will be expressway to the south of National Route 18, and highway

to the north of it.

a-1 Km118+730～Km135+400(-1+451) - North side of National Route 18

- Road type: Highway - Road grade: Grade II for the delta, design speed 100km - No. of lanes: Four lanes

Figure 2 Road transverse sectional composition (Expressway, Urban zone)

a-2 Km-1+451～Km 18+940 - South side of National Route 18

- Road type: Expressway - Road grade: Grade 100, design speed 100km - No. of lanes: Six lanes

Figure 3 Road Transverse Sectional Composition (Highway, Non urban zone)

6

1)-3 Future Traffic Forecast In the region where the Project is planed, traffic volume is expected to increase with economic

development. In Preliminary F/S, forecast for future traffic demand was performed, using value of

elasticity in relation with GDP and domestic transport. Future traffic forecast is examined in this

section based on the result shown in Preliminary F/S.

Table 1 Future traffic forecast

Table 2 Future traffic forecast (by type of vehicle)

1)-4 Bridge Planning Bridge Plan of Hong Ha Bridge is described in this chapter.

Study Team has reviewed the results of existing study report, and proposed a new bridge plan of Hong

Ha bridge including approach bridge taking consideration of span length in the part of main river, sub

main river and both side dikes.

Proposed new three bridge plan are shown in the Table 3 and Fig. 4. Main span length of the

Option 1 has been changed to 127m taking consideration of the cost performance. In the Pre FS study

the main span length of the PC Box girder Option was 135m.

Unit：PCUSection 2010 2015 2020 2025 2030

NH3 – NH2 9,716 15,931 25,093 34,121 45,131NH2 - NH32 13,169 22,458 33,076 45,624 60,896

Unit：PCUSection Vehicle 2010 2015 2020 2025 2030

Car 851 1,508 2,524 3,565 4,907Small Bus 566 1,003 1,678 2,370 3,217Big Bus 456 808 1,353 1,912 2,594Light truck 2,226 3,876 6,380 9,011 12,127Medium truck 2,779 4,841 7,968 11,254 15,0603 axle truck 794 1,384 2,277 3,217 4,305Truck > 3 axle 316 550 905 1,278 1,710Other 40 70 115 163 218Motorbike 1,688 1,892 1,892 1,352 992Total 9,716 15,931 25,093 34,121 45,131Car 1,134 2,010 3,058 4,320 5,946Small Bus 2,121 3,760 5,722 8,082 10,969Big Bus 2,251 3,990 6,071 8,575 11,639Light truck 1,232 2,145 3,210 4,534 6,101Medium truck 1,420 2,473 3,700 5,226 6,9943 axle truck 2,599 4,527 6,774 9,567 12,803Truck > 3 axle 1,120 1,950 2,919 4,122 5,517Other 21 37 55 78 105Motorbike 1,271 1,567 1,567 1,120 822Total 13,169 22,458 33,076 45,624 60,896

NH3-NH2

NH2-NH32

7

Table 3 Proposed new three bridge options by Study Team

Bridge Plan

Bridge Type Span Length Height of Main Structure

Structure

Option-1 PC Box Girder 85+5@127+85

=805m+28.5m (Upper floor of Box

Girder)

Pre-Stressed Concrete with Box Girder

Option-2 Cable-Stayed Bridge

160+2@370+160 =1,060m

+119m (Top of the Tower)

Tower：Reinforced Concrete Girder：Steel Edge-Girder

Option-3 Extradosed Bridge 160+2@370+160

=805m+52m (Top of the Tower)

Tower：Reinforced Concrete Girder ： PC Box Girder with Corrugated Steel Web Plate

Figure 4 3 Options for Hong Ha Bridge

4 968 000

805 000 805 000 805 000(

P31 P32 P33 P34 P35 P36 P37 P39 P40 P41 P42 P43 P44 P45 P46 P47 P48 P49 P50 P52P38 P51

85 000 5@127 000 = 635 000 85 00085 000

5@127 000 = 635 00085 00085 000

5@127 000 = 635 00085 000

000

場所打ち杭　φ2000L=40.000m


4 969 000

805 000 551 000(

P31 P32 P33 P34 P35 P36 P37

P39 P40 P41

P42 P43 P44 P45 P47P38 P46

85 0003@127 000 = 381 000

85 00085 0005@127 000 = 635 000

85 000000


160 000 370 000 370 000 160 000

1 060 000

鋼管矢板基礎 L=40.000m鋼管杭径φ1200

4 968 000

805 000 560 000(

P31 P32 P33 P34 P35 P36 P37

P39 P40 P41 P42 P43

P44 P45 P46 P47 P49P38 P48

85 0003@130 000 = 390 000

85 00085 0005@127 000 = 635 000

85 000000


100 000 4@210 000 = 840 000 100 000

1 040 000


Option-1 PC Box Girder


Option-3 Extradosed Bridge

Cast-in-place pile Cast-in-place pile

Cast-in-place pile

Cast-in-place pile Steel pipe sheet pile

Steel pipe sheet pile

8

Figure 5 Whole Length of Hong Ha bridge (3 Options）

9

1)-5 Project Cost Project cost of road section with 4 lanes from Trung Gia to Phuc Yen is shown to Table 5, with 6 lanes

from Phuc yen to Phung is shown to Table 6 and whole road section from Trung Gia to Phung is shown

to 7.

Based on the existing design quantity of 3 bridges option, the 3 bridges cost has been reviewed with

contracted Nhat Tan bridge’s price and other records in Japan as of Dec 2010.

Table 4 Project Cost from Trung Gia to PhucYen (4 Lanes, L=17km) Items Cost（100mi. JPY） Note

Construction Cost(road） 69 Including middle & Small sized Bridges and IC

Traffic Control Facilities 1 Land Acquisition 19 D/D & Consultant 8 Contingency 19 Total Cost 116

Table 5 Project Cost from Phuc Yen to Phung（6 Lanes, L＝20km）

Items Cost（100mi. JPY） Note

Road 115 Including middle & small sized Bridges and IC

PC Box Girder Bridge 335 Option-1 Steel Cable-Stayed Bridge

410 Option-2 HONG HA Bridge

Extradosed Bridge 410 Option-3

Const. Cost

Total Const. Cost 450～525

Land Acquisition 82 D/D & Consultant （Including Traffic Control Facilities）

51

Contingency 104 Const. Cost＊20%

Total Cost 687～762

Table 6 Total Project Cost from Trung Gia to Phung（L=37km） Items Cost（100mi. JPY） Note

Construction Cost 519～594

Traffic Control Facilities 4 Land Acquisition 101 D/D & Consultant 59 Contingency 123 Total Cost 806～881

10

Table 7 Project Cost in Vietnamese Dong and Japanese Yen Currency

in case of Cable-Stayed bridge (from Trung Gia to Phung, 37km) Items Inner Currency

Dong:（Bil.VND） Foreign

Currency:Yen (100mil.Yen)

Total Cost in Japanese Yen

(100mil.Yen)

Note

Construction Cost

10,840.5 141 594 Cable –StayedBridge

ETC Facilities 0 4 4 Land Acquisition Cost

2,417.0 0 101

Consultant Fee 478.6 39 59 Contingency 1,029.0 80 123 Total Cost 14,765.1 264 881

(Exchange Rate 100 mil.Yen=23.9304Bil.VND)

＊ Foreign Currency Ratio:264/881=30%

2) Outline of the Result of Preliminary Financial and Economic Analysis

2)-1 Calculating basis for FIRR

When calculating Financial Internal Rate of Return (hereinafter referred to as FIRR) on Investment for

RR4(37km), calculation basis has been set taking consideration of indexes of economical conditions in

Vietnam as stated below.

Discount Rate : 12.0%

Inflation Rate : 8.0%

Project Period: 30～40 years

Toll Price : 5 cent/km（900 VND/km）, (Toll Price will be revised according to inflation rate every year. )

Operation & maintenance cost : 50（Thousands USD/km/year）(refer to Page 3-68)

Dividend for SPC : None

Figure 6 Index of Inflation rate in Vietnam

‐10.0

‐5.0

0.0

5.0

10.0

15.0

20.0

25.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Lending interest rate (%) Deposit interest rate (%)

Inflation, GDP deflator (annual %) Real interest rate (%)

11

Table 8 Indexes of lending interest rate, inflation rate etc., in Vietnam

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Lending interest rate (%) 10.6 9.4 9.1 9.5 9.7 11.0 11.2 11.2 15.8

Deposit interest rate (%) 3.7 5.3 6.4 6.6 6.2 7.1 7.6 7.5 12.7Inflation, GDP deflator (annual %) 3.4 1.9 3.9 6.7 8.2 8.2 7.3 8.2 21.7 5.6Real interest rate (%) 6.9 7.3 4.9 2.6 1.4 2.6 3.6 2.7 -4.9

Source: Data-Base of World Bank

Table 9 Forecast of Traffic Amounts and Toll Revenue

Traffic (1000 vehicles/day) Toll Revenue Note

�NH3-NH2 �NH2-NH32 (mil. USD/year)

2015 15.9 22.5 17.9 Supposed to be opened in 2015

2020 25.1 33.1 37.9

2025 34.1 45.6 72.9

2030 45.1 60.9 136.0

2)-2 Case setting to be analyzed in PPP scheme for implementing construction project

Six cases of PPP scheme FIRR analysis has been proposed and conducted in order to be considered which

is the best implementation scheme for investment of private company and government.

Figure 7 Target Area for Study

②Phung～Phuc Yen（20km） ①Phuc Yen～Trung Gia（17km）

Hong Ha bridge

Phung Phuc Yen

Trung Gia

Noi Bai Airport

NH-32 NH-18

NH-3

12

Table 10 Supposed 6 cases in PPP scheme for implementation of the project “ RR4 (37km)”

Road Length Project Cost

Investors for the Project Form of Investment

Case-0

37km

971 mil.USD

Gov.’s VGF: 0 % Private Investors :100 %（Const.、D/D、S/V、O&M）

Debt/Equity Ratio= 7 : 3

･Capital Investment ･Borrowing from commercial

banks Case-1

37km

971 mil.USD

Gov.’s VGF: 30% Private Investors :70 %（Const.、D/D、S/V、O&M）

D/E Ratio＝ 7 : 3

･Capital Investment ･Borrowing from commercial banks

Case-2

37km

971 mil.USD

Gov.’s VGF: 30% Private Investors :70 %（Cont.、D/D、S/V、O&M）

D/E Ratio= 7 : 3

･Capital Investment ･Borrowing from Public fund such as JICA,W.B.,and ADB 2 STEP Loan

Case-3

37km

971 mil.USD

Gov.’s VGF: 50% Private Investors : 50%（Const.、D/D、S/V、O&M）

D/E Ratio= 9 : 1

･Capital Investment ･Borrowing from Public fund such as JICA,W.B.,and ADB

2 STEP Loan Case-4

20km

(Phuc Yen~ Phung ） 828 mil.USD

Gov.’s VGF: 30% Private Investors : 70%（Const.、D/D、S/V、O&M）

D/E Ratio= 7 : 3 The 17km-section from Trung Gia to Phuc Yen willbe built under other BT scheme.


2 STEP Loan

Case-5

Construction 32km

425 mil.USD O & M

37km

Gov. will construct Hong Bridge with JICA’s Yen Loan. Private Investors will be responsible for O & M of whole section of 37km and construction of the road section 32km except Hong Ha Bridge.

･JICA’s Yen Loan ･Capital Investment ･Borrowing from commercial

banks

13

2)-3 Result of preliminary financial analysis

The result of financial analysis of six cases is shown in the Table 11.

Table 11 Result of the financial analysis on six supposed cases

Case Project Cost (mil.USD) VGF（％）

FIRR（％）, NPV(mil.USD

Financial Estimation

Note

Case 0

971 0

D/E：7:3

3.2 -617.4

No good

Case 1

971 30 D/E：7:3

9.4 -160.0

No good

Case 2

971 30 D/E：7:3

13.2 59.6

Good

If traffic amounts would be 20% under forecast , FIRR & NPV would down to 11.4％and -29.4 mil. USD

Case 3

971 50 D/E：9:1

22.5 257.4

Better

VGF should be under 30% in the Decision No.71.

Case 4

831 30 D/E：7:3

13.9 85.6

Good

Case 5

425 0 D/E：7:3

14.6 126.7

Better

Hong Ha Bridge would be built with ODA

Case 0 and 1 has been estimated no good financially. Case 2 will be not so bad, because if traffic

amounts would be 20% under forecast, FIRR and NPV would down remarkably. Case 3 has been estimated

good, but VGF exceeds limit of the regulation in the Decision No.71, so it will need approval by the prime

minister.

Case 4 has been estimated better financially, because project cost will reduce to 85% comparing to Case

0, 1,2 and 3.

In the Case 5,government will build the Hong Ha bridge with ODA, and the PPP investor will construct

32km expressway except Hong Ha bridge. After the completion of the bridge and expressway, government

will lend the Hong Ha bridge to the PPP investor without any charge, PPP investor will be in charge of

operating and maintenance whole section of expressway including Hong Ha bridge and collect toll during

business period. So Case 5 would be so called combined ODA and PPP scheme. Case 5 would be most

14

favorite scheme for private sector , because project cost is least in six cases and estimated to be better

financially. The FIRR in Case 5 wlll be improved with lower interest rate than 12 %.

2)-4 Result of calculation of Economical Internal Rate of Return（EIRR）

The results of calculation EIRR and B/C are shown in the Table 13, it has demonstrated an economical

effectiveness of the project. And it has been certified that the expressway of RR4(North western section) is

very useful as social infrastructure after completion of the project period.

Table 12 Result of the calculation EIRR and B/C

（Unit：million USD) Year Reduction Inflation Yearly Saving Time BenefitRunning cost saving Benefit Total Benefit Construction, O & M Cost Yearly Benefit

Rate Rate Simple Value Present Value Simple Value Present Value Simple Value Present Value Simple Value Present Value Simple Value Present Value

2010 100.0% 1.00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.02011 89.3% 1.08 0.0 0.0 0.0 0.0 0.0 0.0 35.0 31.3 -35.0 -31.32012 79.7% 1.17 0.0 0.0 0.0 0.0 0.0 0.0 103.0 82.1 -103.0 -82.12013 71.2% 1.26 0.0 0.0 0.0 0.0 0.0 0.0 209.0 148.8 -209.0 -148.82014 63.6% 1.36 0.0 0.0 0.0 0.0 0.0 0.0 315.0 200.2 -315.0 -200.22015 56.7% 1.47 0.0 0.0 0.0 0.0 0.0 0.0 315.0 178.7 -315.0 -178.72016 50.7% 1.59 10.1 5.1 6.2 3.1 16.3 8.3 1.8 0.9 14.5 7.42017 45.2% 1.71 21.8 9.9 13.4 6.1 35.2 15.9 1.9 0.9 33.3 15.12018 40.4% 1.85 35.3 14.3 21.7 8.8 57.0 23.0 2.0 0.8 54.9 22.22019 36.1% 2.00 50.9 18.3 31.2 11.3 82.1 29.6 2.2 0.8 79.9 28.82020 32.2% 2.16 68.7 22.1 42.1 13.6 110.8 35.7 2.4 0.8 108.4 34.92021 28.7% 2.33 79.6 22.9 48.8 14.0 128.5 36.9 2.6 0.7 125.9 36.22022 25.7% 2.52 92.0 23.6 56.3 14.5 148.3 38.1 2.8 0.7 145.5 37.42023 22.9% 2.72 105.7 24.2 64.7 14.8 170.5 39.1 3.0 0.7 167.5 38.42024 20.5% 2.94 121.1 24.8 74.1 15.2 195.2 39.9 3.2 0.7 192.0 39.32025 18.3% 3.17 138.3 25.3 84.6 15.5 222.9 40.7 3.5 0.6 219.4 40.12026 16.3% 3.43 159.2 26.0 97.4 15.9 256.5 41.8 3.8 0.6 252.7 41.22027 14.6% 3.70 182.5 26.6 111.6 16.3 294.1 42.8 4.1 0.6 290.0 42.22028 13.0% 4.00 208.6 27.1 127.5 16.6 336.1 43.7 4.4 0.6 331.7 43.12029 11.6% 4.32 237.7 27.6 145.2 16.9 382.9 44.5 4.8 0.6 378.1 43.92030 10.4% 4.66 270.0 28.0 165.0 17.1 435.0 45.1 5.1 0.5 429.9 44.62031 9.3% 5.03 291.7 27.0 178.2 16.5 469.8 43.5 5.6 0.5 464.3 43.02032 8.3% 5.44 315.0 26.0 192.4 15.9 507.4 41.9 6.0 0.5 501.4 41.42033 7.4% 5.87 340.2 25.1 207.8 15.3 548.0 40.4 6.5 0.5 541.5 40.02034 6.6% 6.34 367.4 24.2 224.5 14.8 591.9 39.0 7.0 0.5 584.9 38.52035 5.9% 6.85 396.8 23.3 242.4 14.3 639.2 37.6 7.6 0.4 631.7 37.22036 5.3% 7.40 428.5 22.5 261.8 13.8 690.3 36.3 8.2 0.4 682.2 35.82037 4.7% 7.99 462.8 21.7 282.8 13.3 745.6 35.0 8.8 0.4 736.8 34.52038 4.2% 8.63 499.8 20.9 305.4 12.8 805.2 33.7 9.5 0.4 795.7 33.32039 3.7% 9.32 539.8 20.2 329.8 12.3 869.6 32.5 10.3 0.4 859.4 32.12040 3.3% 10.06 583.0 19.5 356.2 11.9 939.2 31.3 11.1 0.4 928.1 31.02041 3.0% 10.87 629.7 18.8 384.7 11.5 1,014.3 30.2 12.0 0.4 1,002.3 29.92042 2.7% 11.74 680.0 18.1 415.5 11.1 1,095.5 29.1 13.0 0.3 1,082.5 28.82043 2.4% 12.68 734.4 17.4 448.7 10.7 1,183.1 28.1 14.0 0.3 1,169.1 27.82044 2.1% 13.69 793.2 16.8 484.6 10.3 1,277.8 27.1 15.1 0.3 1,262.7 26.82045 1.9% 14.79 856.6 16.2 523.4 9.9 1,380.0 26.1 16.3 0.3 1,363.7 25.82046 1.7% 15.97 925.2 15.6 565.2 9.6 1,490.4 25.2 17.6 0.3 1,472.8 24.92047 1.5% 17.25 999.2 15.1 610.5 9.2 1,609.6 24.3 19.0 0.3 1,590.6 24.02048 1.3% 18.63 1,079.1 14.5 659.3 8.9 1,738.4 23.4 20.6 0.3 1,717.9 23.22049 1.2% 20.12 1,165.5 14.0 712.0 8.6 1,877.5 22.6 22.2 0.3 1,855.3 22.32050 1.1% 21.72 1,258.7 13.5 769.0 8.3 2,027.7 21.8 24.0 0.3 2,003.7 21.5

計 15,128.0 716.3 9,244.1 438.1 24,372.0 1,154.4 1,278.9 658.9 23,093.1 495.5

EIRR 16.4%B/C 1.75NPV 493.6

15

3) Analysis on environment and social aspects

In Vietnam, it is provided that environmental impacts shall be assessed in two stages of Initial

Environment Examination (IEE) and Environmental Impact Assessment (EIA). The assessment of the

project route is now in the intermediate phase of the first stage. In this Study, the environmental and

social impacts were examined mainly based on the IEE interim report, results of a current condition

survey, environment-related laws and regulations of Vietnam.

- Most of the area north to Red River is farmland where wet-rice double-cropping or double-cropping of wet-rice and corn are practiced. As for the section planning to be constructed through the expansion of Provincial Highway No. 35, settlements along the highway would be affected.

- There are many houses in the waterside land of the Red River. In the are south to Red River, many farm owns banana farmland

- The project route does not pass through any nature reservation parks. According to local environmental consultants, the project route is unlikely to pass through any ecologically- important areas but a survey is required for the Red River and the wetland because rare aquatic organisms possibly inhabiting these areas.

- No survey on minority or indigenous people has been conducted so far, so a survey of residency needs to be conducted.

The project is expected to contribute 1) to t reduce exhaust gases emitted from vehicles through easing

traffic jam in the central part of Hanoi, 2) to promote development of the northwestern side of Hanoi city,

create jobs, and facilitate growth of the local economy, and 3) to promote smoother travel. On the other

hand, large-scale resettlement would be required since approximately 400 houses are on ROW of the

proposed alignment. It is necessary to discuss with local residents fully in advance and make efforts to

form a consensus. Appropriate compensation must be provided for residents subject to resettlement. The

project might affect the lives of neighborhood residents substantially, so full prior discussion is required.

The option with the least environmental impact from a short-term perspective is “without Project”. As

described above, however, the proposed project is expected to make a great contribution to easing traffic

jams and the growth of the local economy. It is believed that the project will be able to maximize

positive effects on the environment and society by taking appropriate measures to reduce negative

impacts.

16

(4) Project Schedule

Schedule is as shown below from the point when land acquisition and detailed design start after

concession contract between government and SPC in case of PPP.

Table 13 Implementation Schedule

Items 1st year 2nd year 3rd year 4th year 5th and subsequent years

Detailed design Land acquisition

Construction Selection of contractors

Construction: 40 months

Operation and maintenance

In the case of a BOT project, in general, the private enterprise implementing the project (SPC) operates

and maintains the road, in addition to construction of the road, in the fifth and subsequent years until it

recovers the investment.

(5) Feasibility for implementation of the Project

The section south to proposed Project, namely from the interchange with NH32 to NH 1A would be

implemented by BT scheme. Concession contract is shortly expected to be made between two

Vietnamese companies and Vietnamese government, which could be consider to indicate high feasibility of

proposed Project. The Project requires high construction cost for long span Hong Ha Bridge with its length

of 5km. How to get a return on investment safely and favorably is critical issue for private companies.

Appropriate VGF would promote the action by private companies for the contract.

17

(6) The advantages of Japanese companies in Technological Aspect

1) Operation and Maintenance of the expressway

Vietnam has practically no experience in the operation and maintenance of expressways. As it is

anticipated that the age of fully-fledged expressways will arrive in the country in the future, private

enterprises with experience in expressway operation and maintenance utilizing advanced ITS technology

are expected to participate in the project. At present, Vietnam has not only this but also many other

expressway construction projects, and for all these projects, advanced traffic safety management measures

can be taken and a wide range of toll fee collection systems adopted. And making the most of ETC

facilities that do not require cars to stop for toll fee collection or fail to collect toll fees is one of the issues

to be addressed in these projects. The know-how accumulated by Japanese expressway companies through

the operation and maintenance of about 9,000-km high-standard arterial roads is expected to provide a

standard for solving these issues in Vietnam. In order to ensure that Japanese expressway companies and

their group companies fully demonstrate their know-how in operation and maintenance services, it is

desirable that they participate in the project as an entity that implements it. To that end, Japanese

companies should invest in the special purpose company (SPC) for the project and provide toll road

operation and maintenance services as part of the entity, and by doing so, they will be able to establish a

safe and secure expressway operation and maintenance system based on Japanese standards in Vietnam.

Expected specific forms of participation by Japanese companies in operation and maintenance as well as

construction work are shown in the table below.

Table 14 Detailed operation and maintenance technology for expressway

Participating companies Form of participation Advantages in

technological aspect

Remarks

Expressway companies Investment in SPC Operation ＆ Maintenance

System using ITS such as

ETC, Traffic Safety Control

System and so on

Joint ventures with

Vietnamese companies

Banks and other

financial institutions

Investment in SPC Sales of ETC cards

Electric manufacturers,

etc.

Selling facilities and

instrument for O & M

of Vietnamese

expressway

- Sales of ETC system

equipment (such as

on-board devices)

- Sales of traffic

guidance and

information systems

18

2). Design, construction and material to construct Cable-Stayed bridge and Extradosed bridge

The route covered by this project extends a total of 37 kilometers and will cost 1.1 billion USD to

construct. The project scope covers the construction of a cable-stayed bridges that will have center span

length 370 meters, and for which it is anticipated that Japanese materials, design and construction

technologies will be utilized.

The site at which this bridge to be constructed is located in the Red River Delta, and there is layer of

soft soil ground with an SPT N-value approaching zero that extends to a considerable depth. The

construction of the substructures is thus expected to be difficult and demanding Japanese bridge

construction technology .

The Red river to be spanned by this bridge is about 5,000m in width and are strategic routes for river

transport bound for Hai Phong City, with a navigation clearance of 80 meters. It will therefore be

necessary to ensure that river traffic is subject to minimal disruption during construction.

In recent years, the costs involved in the maintenance of bridge superstructures have begun to be

assessed in terms of life cycle costs, and the weather-resistant steel that is being employed in many steel

bridges in Japan, is considered to represent one example of this trend.

3) Japanese Company’s Image in the Special Purpose Company established in Vietnam

When Japanese company will participate in the project, an image for implementation system of the

project is shown in Fig. 8. It corresponds to the PPP scheme, of which has been referred to Case 5 and

estimated excellent in the FIRR analysis. In the Case 5 , Vietnamese government will construct Hong Ha

Bridge with ODA loan, while PPP investor will construct expressway section with length of 32km, and

then PPP investor will operate and maintain whole section of expressway including Hong Ha Bridge. Of

course Government will lend Hong Ha Bridge with no charge to PPP investor during business period.

It would be referred to as “PPP scheme combined ODA scheme”.

The image of project implementation system in Fig 8 has been planed based on the results of the

interview study for the Vietnamese officials MPI, MOT, Hanoi Authority for Planning and Investment and

officials in Vietnamese private companies such as Him Lam Corporation, BITEXCO and VINACONEX.

And it has been confirmed to be valid according to the law in Vietnam.

19

Figure 8 Japanese Company’s Image in the Special Purpose Company established in Vietnam

Hong Ha Bridge Construction ( 5km) Yen Loan Project(STEP)

Road Construction under PPP Scheme （32km）

Vietnam HPC or MOT

HPC

SPC Japanese Share 51％（NEXCO Companies and , General Contractors ） Vietnamese Share 49％

Joint Venture of the Japanese Companies

JICA

ODA, Yen Loan (STEP)

Completed Hong Ha Bridge (L=5km)

Completed Expressway (L32km)

Japanese NEXCO Section 37kmExpressway O & M Orders from SPC

Bank Loan

Construction Contract

Customers

Services Expressway Pay toll

Road Const. J.V. Toll Revenue

Contract O&M


20

(7) Detailed schedule to realization of the project and risks of obstruct the project

MOT has submitted FS report on the study section of the RR4 to the cabinet at the end of Nov. 2010, and

is waiting for prime minister’s approval for implementing the project. A typical schedule for realizing the

project under PPP scheme is supposed to be described in the Table 15 after obtaining the prime minister’s

approval.

Table 15 A supposed schedule to realization of the project

2011 2012

Items

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6

Remarks

HPC’s application of the PPP project plan to the MPI

MPI’s Judgement and approval

Announcement for the candidates

E.O.I and P.Q. of the Companies and judgment

International Competitive Bidding

Estimation of the Bidders and Negotiation for Contracts

Conclusion of the Concession Contract

Detailed Design and Land acquisition

Approximately

10 months

21

Table 16 Hong Ha Bridge Construction Schedule Using Yen Loan from JICA

Items

2011

2012

2013

2014

Feasibility study

SAPROF

Dispatch of JBIC appraisal mission

Pledge

Loan Agreement

Selection of consultants

Detailed design

Support for bid tendering

Start of construction

Table 16 is assumed to be the earliest schedule. Bridge construction is estimated to require

approximately 40 months from start to finish. Construction of Hong Ha Bridge is believed to be the critical

element in the entire PPP project processes including construction of the road section.

After finishing detailed design and hand-over the land to the contractor, construction works will be

commenced. The construction works will take 40 months, so the RR4 (Northwest section) is supposed to be

completed in 65 months after submission of the application for the project by the HPC.

There are some risks to obstruct implementation of the project. A supposed biggest risk is objection

against project by the people who are forced to be transferred. There may be more than 380 household to be

forced to be removed in order to construct 37 km road, so the land for the 380 household should be

prepared to acquire the ROW smooth. Besides there may be another risks to delay the progress of the

project. If it were not objective standard for estimating bidders in the international competitive bidding in

the government side, even international competitive bidding and negotiation contract may be the risk for

delaying the implementation of the project.

22

(8) Project Location Map

Start Point of the Study(Crossing with the Hanoi-Thai Nguyen Expressway)

Hanoi-Lao Cai Expressway

NH.2

NH.32

NH.6

NH

.1

NH.5

New

NH.1

NH.1

NH.18

NH

.3

Hanoi-Thai Nguyen

ExpresswayRR-4

(Nor

th-w

est S

ectio

n)

Lang-Hoa Lac Road

New

NH

.1

Crossing with theHanoi-Lao Cal Expressway Bac Giang

Thai Nguyen

Hanoi

Bac Ninh

Hung Yen

Vinh Phuc

RR

-3 RR-2

Noi BaiInternational

Airport

Hai Phong→

Project Location Map

Trung Gia

Phung

End Point of the Study(Crossing with the NH.32)

Hong Ha Bridge

NH.23

0 5 10km

1-1

Chapter 1 Overview of the Host County and

Sector

1.1 Economic and Financial Conditions

1.1.1 Economic Conditions

The Vietnamese economy from the 1980s to the present can be roughly divided into three

periods:

(1) 1986 – 1991: Introduction of market economy principles

(2) 1992 – 1997: Achievement of rapid economic growth

(3) 1998 – present: Overcoming the effects of the East Asian currency crisis

The Doi Moi (renovation) policy adopted by the Communist Party of Vietnam at its Sixth

Congress in 1986 led to the transformation of Vietnam from a centrally-planned economy to a

market economy. Dramatic measures were implemented in the following years, including the

reorganization of state-run companies, agricultural liberalization and financial system reforms.

Economic growth, which ranged from 3.5% to around 6% in the early years of the Doi Moi

policy, accelerated to 8.7% in 1992 as the effects of Doi Moi spread through the economy and

remained at the 8% – 9% level up to 1997.

In July 1997, East Asian countries experienced an economic crisis triggered by the steep fall of

their currencies. Vietnam was relatively unaffected, having closed its capital market early on.

Economic growth, which decelerated after the crisis, picked up to 6.8% in the year 2000 and has

gradually accelerated in the following years, reaching 8% in 2005 to 2007. Rapid economic

growth slowed down to 6 % in 2008 and 5% in 2009, arising from recession of world economy

by Lehman’s fall.

Figure 1-1 GDP Growth in Viet Nam

Source: Website of General Statistics Office in Vietnam

0

1

2

3

4

5

6

7

8

9

1998

GDP成長率（％）

20102008200620022000

GD

P G

row

th R

ate

(％)

1-2

Vietnam’s macroeconomic conditions have improved steadily in recent years, as indicated by

strong economic growth, low inflation, healthy trade balance, stable currency and declining

international debt. At the same time, economic relations with other nations have become more

active due to the effects of globalization. Vietnam’s sphere of economic activity has expanded

from a regional framework focused on ASEAN and other Asian countries to a more global

framework backed by membership in the World Trade Organization in 2007, though influenced

by recession of world economy after 2008.

1.1.2 Industrial Structure

As for Vietnam’s industrial structure since 1990, the GDP share of the agricultural, forestry

and fishery sector plunged 11 percentage points over the 17 years from 1990 to 2007, while that

of the construction and manufacturing sector rose a steep 16 points. The change in favor of

construction and manufacturing has been especially conspicuous from 1990 onwards and is a

clear indication of the nation’s rapid progress in industrialization. The driving force of Vietnam’s

industrialization has been private domestic firms and foreign-based enterprises, rather than

state-owned corporations. In particular, foreign companies, which are involved primarily in the

manufacturing and processing of automobiles, high-value added products such as medical

devices, and precision machinery including business machines, computers and

telecommunication equipment, have served as key players in Vietnam’s industrial development

and contributed substantially to the growth of the nation’s GDP.

The service sector has experienced a moderate decline in its GDP share since 1990. This trend

is highly likely to be reversed in the future due to Vietnam’s increasing integration into the global

economy beginning from the late 1990s (service industries in Japan and other developed

countries represent over 70% of GDP), though it declined from 2003 to 2007.

Table 1-1 Industrial Composition in Vietnam (%)


Actual Results 1990 1995 2000 2003 2007 Agriculture, Forestry and Fisheries Industry 31.8 26.3 23.3 21.1 20.3

Construction and Industry 25.2 29.9 35.4 38.5 41.5

Service 43.0 43.8 41.3 40.4 38.2

Total 100.0 100.0 100.0 100.0 100.0

1-3

1.1.3 Foreign Trade

Imports into and exports out of Vietnam, which were stagnant during 1996 – 1999 due to the

East Asian currency crisis, have increased sharply since 2000. Exports in terms of value

expanded sharply at an average annual rate of 24% from 2003 to 2007, while imports did even

better with a rate of 23%. Due to the steep rise of imports, the trade balance (exports minus

imports) worsened from a deficit of US$5.1 billion in 2003 to a deficit of US$14.2 billion in

2007.

Close to 50% of Vietnam’s foreign trade is with East Asia and Southeast Asia. Outside of Asia,

the US and the EU account for large proportions of Vietnam’s foreign trade. By country, China is

the largest trading partner, followed by Japan and the US. Trade balances vary widely depending

on the country or region. For example, trade with Japan is more or less well balanced, while

imports sharply exceed exports in trade with China and the ASEAN nations. Conversely, Vietnam

enjoys a trade surplus with the US and with the EU.

Table 1-2 Exports and Imports of Vietnam (million USD)


Table 1-3 Trading Partners: 2005 (million USD)


1.1.4 Investments

Investments in Vietnam increased an amazing 4.7 times (average annual rate of 16.8%) over

the 10 years from 1995 to 2005. Growth has been particularly steep in the years since 2003. By

ownership, governmental investments accounted for the largest share, running constantly at 40%

or more and accelerating to 50% or higher from 1998 to 2003. Investments from state coffers

served as the primary engine of development activity up to 2003.

2003 2004 2005 2006 2007 Amount 20,149.3 26,485.0 32,447.1 39,826.2 48,561.4Export

Improvement 20.6％ 31.4% 22.5% 22.7% 21.9%Amount 25,255.8 31,968.8 36,761.1 44,891.1 62,764.7Import

Improvement 27.9% 26.6% 15.0% 22.1% 39.8%Differences Amount -5106.5 -5483.8 -4314.0 -5064.9 -14203.3

Japan China ASEAN Australia USA EU Total Export 4,340 3,228 5,744 2,723 5,924 5,517 32,447Import 4,074 5,900 9,326 499 863 2,581 36,761Total 8,414 9,128 15,070 3,222 6,787 8,098 69,208Share 12.2% 13.2% 21.8% 4.7% 9.8% 11.7% 100.0%

1-4

Non-governmental investments grew especially sharply since 2003, outperforming the growth

of state investments. This indicates the private sector’s strong desire to invest against the

background of stable economic growth. Investments from abroad also increased steadily, but

their share of total investments declined due to the sharp expansion of state and non-state

investments.

Table 1-4 Investment Trends (‘00 million Yen)


Table 1-5 Investment Trends (trillion VND)


Table 1-4 and Table 1-5 show the recent record of investment, from 2008 to 2010.

Governmental investment increased in response to the economic crisis in 2009 (up 37.6% on

the preceding year), but only increased by 10.0% in 2010. On the other hand, non-governmental

sector and foreign investment increased 17.1% in response to the economic recovery, surpassing

the 14.9% increase of the preceding year.

Ownership 1995 2000 2005 Amount 2,120 6,227 11,256 Governmental

Investment Share 42.0％ 59.1％ 47.1％ Amount 1,393 2,409 9,081 Non-Governmental

Investment Share 27.6％ 22.9％ 38.0％ Amount 1,532 1,892 3,559 Foreign

Investment Share 30.4％ 18.0％ 14.9％ Amount 5,045 10,528 23,895 Total Share 100.0％ 100.0％ 100.0％

Ownership 2008 2009 2010 Amount 209.0 287.5 316.3 Governmental

Investment Share 33.9% 40.6% 38.1% Amount 217.0 240.1 299.5 Non-Governmental

Investment Share 35.2% 33.9% 24.7% Amount 190.7 181.2 214.5 Foreign

Investment Share 30.9% 25.6% 18.4% Amount 616.7 708.8 830.3 Total Share 100% 100% 100%

1-5

Table 1-6 Foreign Direct Investment (Approval Basis) by Region (‘000 Yen)

Source: Statistical Yearbook of Vietnam 2006

A look at the number and amount of foreign direct investments in 2006 by region shows that

the southwest region (which includes Ho Chi Minh) accounted for over 50% of both the number

and amount of such investments. This was followed by the Red River delta region (including

Hanoi), and the south-central coastal region including Da Nang. Scale of investment for the south

–central region is 3.1 of in number but 12.6% in amounts, so it shows that there are so many large

scale investments in the region.The target regions for direct foreign investment are those centered

on Ho Chi Minh, Ha Noi and Da Nang.

1.1.5 National Finance

Revenues have increased steadily in recent years thanks to the stable growth of economic

activity. Revenues as a percentage of GDP have averaged a high 25% since 2000.

Table 1-7 National Budget Trends (trillion VND)


The national budget has been in deficit since 2000, pressured by enthusiasm for infrastructure

investment. The deficit has been trending downwards, from around 20% of revenue to the 10%

level, but in 2007 it was VDN83.5 trillion (26%). This fiscal deficit is financed by sources such

as bond issues and overseas borrowing.

2006 No. of Projects Share (%) Amount Share (%) Red River Delta 307 31.1 3,655 27.3 North-East 32 3.2 341 2.5 North-West - - 11 0.1 North-Central Coastal 13 1.3 50 0.4

South-Central Coastal 31 3.1 1,691 12.6

Central Midland 7 0.7 19 0.1 South-West 555 56.2 7,144 53.3 Mecong River Delta 38 3.9 377 2.8

Petroliam Related 4 0.4 120 0.9 Total 987 100.0 13,408 100.0

2000 2001 2002 2003 2004 2005 2006 2007 Revenue 90.7 107.3 123.9 152.3 190.9 228.3 279.5 315.9Expenditure 109.0 129.8 148.2 181.2 214.2 262.7 308.1 399.4Treasury Budget -18.3 -22.5 -24.3 -28.9 -23.3 -34.4 -28.6 -83.5

1-6

1.2 Overview of Relevant Sectors

1.2.1 Modes of Transport

(1) Passenger Transport

In 2008, 87% of passenger traffic was carried by road, an overwhelmingly high share. The next

highest shares were rail at 7% and inland waterways at 6%, and the share carried by road is

climbing steadily. On the other hand, the passenger transport growth rate between 2003 and 2008

shows that road transport has the highest growth rate, into double digits at 11.7%. Growth rates are

low for both rail and inland waterways, and the ranks of these modes are declining for passenger

transport.

Table 1-8 Passenger Transport: Modal Split and Growth


(2) Cargo Transport

Roads also account for the largest share of total cargo transport but at a much lower rate than for

passenger transport (49% versus 87%). The positions of inland waterways (44%) and railroads (7%)

relative to roads are higher in cargo transport than in passenger transport. Looking at the growth

rates for each mode of transport between 2003 and 2008, the growth rate for inland waterways was

the highest, maintaining a relatively high share of freight. The overall growth rate in freight

transport was 16.6% between 2003 and 2008, surpassing the 8.2% growth rate of GDP over that

period, such that the GDP elasticity (freight growth rate/ GDP growth rate) is around 2.0.

Table 1-9 Cargo Transport: Modal Split and Growth

Source: National Transport Development Strategy in Viet Nam till 2020

2003 2008 Annual Increase (%) Passengers Million

Passengers x kmMillion

Passengers x km Share (%) (2003-2008)

Road 30,458.5 54,221.1 87 11.7 Railway 4,069.0 4,560.4 7 3.7 Inland by Water 2,739.4 3,246.2 6 1.8

Total 37,266.9 62,027.7 100 10.5

2003 2008 Annual Increase (%) Cargo Million Tons x

km Million Tons x

km Share (%) (2003-2008)

Road 12,338.0 27,968.0 49.1 17.4 Railway 2,725.4 4,170.9 7.3 8.0 Inland by Water 15,492.3 24,867.8 43.6 19.6

Total 30,555.7 57,006.7 100 16.6

1-7

1.2.2 Road Sector

(1) Current Conditions

The current road network of Vietnam is 210,000 kilometers, of which 14,900 kilometers are

national highways, 54,400 kilometers are provincial and local roads, and 132,100 kilometers are

rural roads. The backbone of the arterial road network is National Highway 1, which runs 1,730

kilometers from Hanoi in the north to Ho Chi Minh in the south. All other arterials basically access

National Highway 1, either crossing it in an east-west direction or extending radically. Paved roads

represent a mere 5.5% of the total length of roads. The low pavement ratio means that many roads

become impossible during the rainy season.

While the road network is relatively developed, it is still far from sufficient. The road density is

0.633 km/km2, which is only one-fifth the road density of Japan (3.116 km/km2). Road construction

projects are being implemented actively based on ODA and other financing programs, but further

development is necessary in terms of efficiency, safety, and service level. It is essential that the

country continue to improve arterial roads and access roads to rural areas.

Table 1-10 Total Extension and Density of Roads in Vietnam: 2006

Source: MOT Internet Home Page

(2) Road Development Plans

(a) National Transport Development Strategy in Viet Nam till 2020

The “National Transport Development Strategy in Viet Nam till 2020,” released in October 2004,

defines the MOT’s long-term goals and strategies for transportation infrastructure development in

Vietnam. It indicates the general direction toward which the transport sector should aim at, in line

with industrialization and modernization. Outlines of national goals and central region goals are

given below by sector. Specific strategies for the development of the national road network

(especially the arterial road network) are discussed below.

North-south axis: The Strategy calls for the development of the nation’s most important transport

Vietnam Japan Road Length

(km) Road Density

(km/km2) Road Length

(km) Road Density

(km/km2) National Highway

14,935 0.045 53,866 0.143

Provincial Road 54,355 0.164 128,554 0.340 City Road 132,054 0.398 987,943 2.615

Other Road 8,662 0.026 6,915 0.018 Total 210,006 0.633 1,177,278 3.116

1-8

axis by implementing the three plans described below.

Upgrading and extension of National Highway 1 up to Nam Can

Upgrading and construction of the Ho Chi Minh Highway from Cao Bang Province to Cau Mau

Province

Construction of the North-South Expressway (Lang Son – Ca Mau section)

(b) Expressway Development Plan

The ADB prepared an expressway development master plan for Vietnam in 2006 as a technical

assistance project. The plan recommends for development over the short term (2006 – 2015) the 17

routes listed in the table below. The total length of the 17 routes is 1,518 kilometers, and the total

construction cost is estimated to reach US$8,945 million in 2006 prices.

Table 1-11 Expressway Routes to be Developed over the Short Term (2006 – 2015)

S

o

u

r

c

e

:

Expressway Network Development Plan Project (2006)

1.2.3 Railroad Sector


Vietnam has seven major railway lines and several branch lines. The total length of the main lines

is approximately 2,500 kilometers. By far the longest line is the North-South Train, which travels

1,726 kilometers from Hanoi in the north to Ho Chi Minh in the south, taking over 30 hours for

traveling. The North-South Train represents 68% of the combined total length of main lines. The

railroads are all single track, but the gauges vary, being one of three types: 1,000 mm, 1,435 mm or

integrated (1,000 mm and 1,435 mm).

Railways account for 12% of overall passenger transport and 18% of overall cargo transport,

which percentages are far smaller than that of roads. However, rail-based passenger and cargo

transports increased over 10% each annually from 1999 to 2003, considerably outperforming roads

No North-South Expressway km No Other than NSE km2A Ninh Binh-Thanh Hoa 63 13 Hanoi-Hai Phong 1052B Thanh Hoa-Vinh 170 14B Noi Bai-Lam Thao 655A Dau Giay-Nihn Thuan 240 16 Hanoi-Thai Nguyen 615B Ninh Thuan-Na Trang 79 18 Lam Thao-Lao Cai 2206 Da Nang-Quang Ngai 140 21B Hai Phong-Quang Ninh 40

7A Ho Chi Minh-Long Thanh 25 22 Bien Hoa-Ba Ria 587B Long Thanh-DauGiya 30 23A Ho Chi Minh-Thu Dau Mot 258 Trung Luong-Can Tho 95 23B Thu Dau Mot-Chon Thanh 45 25 Ben Luc-Nhon Tran-Long Tranh 57

1-9

and inland waterways in terms of growth rate (see Tables 1-8 and 1-9).

Table 1-12 Main Railroad Lines: Extension and Track Gauge

(2) Railroad Development Plan

Prior to the release in 2004 of the abovementioned “National Transport Development Strategy in

Viet Nam till 2020,” the Prime Minister issued Decision 06/2002/QD-TTg (Vietnam Railway

Development Master Plan) in 2002. Based on this document, which describes concrete

development schemes, this Study summarizes Vietnam’s future goals concerning railroad

development as follows:

(a) Short-Term Goals

The below-mentioned goals are given as short-term goals to be achieved by 2010. Active

measures are called for with the aim of raising the position of railways relative to roads and inland

waterways.

Increase the share of passengers carried by railroads to 20% - 25% (current: 12%) and the

share of cargo carried by railroads to 25% - 30%. Capture a share of at least 20% in major

urban centers such as Hanoi and Ho Ch Minh.

Build a high-speed north-south railway line with 1,435 mm gauge.

Maintain the current gauge on existing lines, and upgrade the equipment and facilities to

achieve a speed of 120 km/hour on passenger trains and 80 km/hour on cargo trains.

Build 10 new lines, including a trans-Asia line and lines connecting with ports.

1.2.4 Port Sector


(a) Inland Water Transport

Vietnam has approximately 41,000 kilometers of rivers and natural waterways, of which 8,000

kilometers are utilized for commercial shipping. Large vessels are restricted from using the inland

waterways due to undeveloped channels, delays in maintenance (dredging), inferior port facilities at

Main Line Length (km) Gouge Hanoi-Ho Chi Minh 1,726 1,000mm Hanoi- Hai Phong 102 1,000mm Hanoi-Lao Cai 296 1,000mm Hanoi-Dong Dang 162 1,435+1,000mm Hanoi-Quan Trieu 75 1,435+1,000mm Kep-Uong Bi-Ha Long 106 1,435mm Luu Xa-Kep 57 1,435mm

Total 2,524 -

1-10

river mouths and other reasons. The lack of large vessels inevitably means that inland water

transport has very low efficiency. Moreover, the freight is mostly heavy, low-cost, low value-added

commodities such as gravel.

Inland waterways are used mostly for cargo transport. The mode accounts for only 0.7% of total

passengers carried and 31% of total cargo carried. In addition, a look at the growth rate of cargo

transport in recent years shows that overall cargo transport expanded 8.7%, whereas cargo transport

by inland waterways increased only 6.3%, indicating a decline in the share of cargo carried by

inland waterways.

(b) Sea Transport

The port system of Vietnam can be largely divided into three groups of the northern, central and

southern port complexes. Buoyed by rapid economic growth, the volume of cargo processed by

seaports has increased at a greater-than-expected rate, particularly the volume of container cargo.

Seaports account for over 80% of cargo carried into and out of Vietnam and play a key role in

international goods distribution.

Table 1-13 Major Port Complexes in Vietnam

Source: The Nippon Foundation Library

Ports Group Port Annual Cargo Volume 2003 21 – 24 million tons North Ports 24 ports including Hai

Phong Port 2010(Plan) 60 – 70million tons 2003 17 – 18million tons Central Ports 14 ports including Da

Nang Port 2010(Plan) 34 – 37million tons 2003 26 – 30million tons South Ports 44 ports including Saigon

Port 2010 (Plan) 85million tons

1-11

1.2.5 Hanoi Ring Road Master Plan

The “Hanoi 2020 Master Plan” (1998, HPC) plans the construction of Ring Roads 1, 2, and

3 with the aims of 1) facilitating the flow of traffic passing through the Hanoi capital region

and relieving traffic inside Hanoi, and 2) improving access to central Hanoi, Noi Bai

International Airport, Hai Phong port and surrounding industrial parks. The construction is now

being propelled forward, including ODA loan projects. The basic route plan for Ring Road 4 ,

that is the subject of the Study, was stated in the “2020 Hanoi Urban Development Plan (2001,

HPC)”, but the Ministry of Transport, which is the executing agency for this project, has

proposed a revision to the route in the MOT Master Plan. The revised route proposal was

approved by the prime minister in 2008.

The development planning is now being prepared on the basis of the revised route proposal

and work is about to begin on the land acquisition plan. Development of the new Ring Road 5

is also beginning. It has been decided that one part of it, the Vinh Thinh Bridge, will be built

with South Korean financing. Ring Road 5 will be part of the Ho Chi Minh Route.

1.2.6 Construction Plan for Hanoi Ring Road 4

The Ministry of Transport, which is the executing agency, presented a route proposal for

Hanoi Ring Road 4 in its Master Plan, and that route proposal was approved by the prime

minister in 2008.

It will link with the radial National Routes and expressways in the Hanoi capital region, as well

as linking the city and industrial parks with the following urban centers near the capital region.

The route will pass through the cities stated below.

Trung Gia, Phuc Yen, Me Linh, Dan Phuong, Hoai Dung, Ha Dong, Thuong Tin, Van Giang, Van

Lam, Yen My, Van Lam, Nhu Quynh, Tien Son, Tien Du, Yen Phong, Hiep Hoa

The length of Ring Road joining these cities is 136km, and the planned numbers of lanes are four

lanes to the north of the intersection with National Route 18 and six lanes to the south (the

maximum right of way of purchased land will be 120m). Construction will start in 2011, for

completion in 2014 and 2015.

1-12

1.2.7 The rail network centered on Hanoi

Hanoi has six rail routes, five radial routes that link it to other cities, and one Hanoi ring route.

Their combined length totals 2,600km.

[1] Hanoi ~ Ho Chi Minh

The longest runs north-south for 1,726km, crossing 20 districts and cities. It is the country’s most

important rail artery, carrying 50% of its passenger traffic and 30% of its freight.

[2] Hanoi ~ Hai Phong

This route runs east for a total of 102km, linking Hanoi with Hai Phong, Vietnam’s largest port.

The volume of freight has been declining since the improvement of National Route 5 was

completed.

[3] Hanoi ~ Lao Kai

This route heads 296km northeast from Hanoi, passing through Vinh Phuc, Phu Tho and Yen

Bai to reach Lao Cai, near the Chinese border. Past Lao Cai, it crosses the border to join with

Kunming in China.

[4] Hanoi ~ Lan Son ~ Dong Dang

This route heads northwest from Hanoi for a total of 163km, passing through Huu Nghi, Bac

Ninh, Bac Giang and Lan Son to reach Dong Dang. It is a domestic and international freight route.

After crossing the border, it goes to Liaoning in China.

[5] Hanoi ~ Thai Nguyen ~ Quan Trieu

This 75km route from Hanoi passes through Dong Anh station on the ring line and heads north,

through Thai Nguyen to reach Quan Trieu.

[6] Hanoi ring line, western branch

The western branch ring line, with a total length of approximately 60km, runs from Hanoi over

the Thang Long Bridge, branches from the Lao Cai line and passes through Dong Anh, Yen Bien,

the Long Bien Bridge and Long Bien to return to Hanoi. The eastern branch is incomplete.

The following projects are also under way to build rail infrastructure on the outskirts of Hanoi.

[1] Hanoi Urban Rail Construction Project (Line 1), loan agreement signed 2008.3, [2] Hanoi

Urban Rail Construction Project (2), loan agreement signed 2009.3 (Nam Thang Long ~ Tran Hung

Dao). Both these projects are financed by Japanese ODA.

1-13

1.3 Situation in the target area

1.3.1 Social condition of the target area

The population of Hanoi was 2.9 million in 2003 (Hanoi People’s Committee documents),

and grew with Vietnam’s rapid economic development, to reach 3.5 million in 2008. On

August 1st, 2008, it absorbed the adjacent province of Ha Tay, that had a population of 2.6

million, and merged with parts of Vinh Phuc and Hoa Binh provinces, increasing the city’s land

area roughly 3.6 times from 93,000ha, and increasing the population greatly, to approximately

6.2 million.

The new area of Hanoi City adds the whole of Ha Tay province, the Me Linh district of Vinh

Phuc province, and four communes from the Luong Son district of Hoa Binh province to the

previous area, bringing the area to 334,470ha and the population to 6,232,940 people. The

number of administrative units at the district level or above more than doubled, from 14 to 29.

The breakdown is nine urban districts (the districts of the old Hanoi), two cities (Ha Dong and

Son Tay), and 18 districts.

Furthermore, as of April 1st, 2009, the population was 6,448,000, an increase of 4% in just

over a year since the merger.

According to an announcement by the Hanoi People’s Committee, the city’s GDP is forecast to

grow by 11% from the 2009 level. That is 2% higher than the 2010 target and 1.67 times the GDP

growth rate of Vietnam as a whole. The growth rates by sectors are 11.9% for tourism, 11.5% for

construction and 6.2% for agriculture. The export level is expected to grow by 20.8%, four times

the target for the year.

The number of tourists visiting Hanoi is up 14% on the preceding year, to 8.8 million, within

which 1.2 million were from overseas, a 20.5% increase. Fund procurement from citizens is

estimated at VDN175 trillion (approximately USD8.9 billion), up 18.5% on the preceding year, and

17,500 new companies have been established, with VDN93.5 trillion (approximately USD4.7

billion) in total registered capital value.

In 2010 there were 22,500 poor households in Hanoi, of which 3,260 received home

improvement support, and 80 schools meeting national standards were built.

The Hanoi People’s Committee aims for 12~13% GDP growth in FY2011.

1-14

The above-mentioned statistical data were announced by the Hanoi People’s Committee, which

had examined the level of attainment of targets for society, economy, public order, and national

defense, and the plans for 2011.

1.3.2 Natural conditions in the target area

The capital Hanoi is situated in the center of the Red River Delta region. The region, in the north

of Vietnam, has the country’s most fertile soil and provides 20% of its rice production. The Red

River Delta has a total area of 1.48Mha (4.5% of the national land area) and is home to 17.24

million people (21.9% of the national population), making it the most densely populated region in

Vietnam. Within the total area of the Red River Delta, 58% is farmland and 8% is forest. The Red

River Delta is the only subtropical delta in Southeast Asia. The elevation is generally a few meters

above sea level. Alluvial sediment carried by the river from the mountains to the north in later July

and early August accumulates in the delta, so the water level is 14m higher than the plain. The rainy

season is from April to early November and the average annual rainfall is approximately 1,700mm.

Rice cultivation in northern Vietnam has two crops per year, with the rainy season (winter) crop

running from seedling transplantation in July to harvest in November, and the dry season (spring)

crop from transplantation between December and March to harvest between April and June. The

rainy season crop is at risk from inundation by large amounts of intense rain brought in by the

Southwestern Monsoon in summer. The dry season crop faces problems of low temperatures (in

years with strong Northeastern Monsoon, air temperature in January and February frequently dips

below 10°C) and drought (low absolute rainfall volume and dry winds from China). Main non-rice

crops include maize, ocarina and cassava. Pigs are a precious source of cash income as livestock.

1.3.3 Economy of the target area

Table 1-14 shows the economic growth and GDP of the target area from 2003 to 2007. The

following can be inferred from the data obtained over that period.

- The GDP of the target area was 14.8% of national GDP in 2003, rising to 17.6% in 2007. The

average economic growth rate per year was 3.26%.

- The GDP growth between 2003 and 2007 was 13.18%, surpassing the national average of 8.2%.

- Population is 12.7% of the national total, while GDP is 17.6% of the total. Therefore, per capita

GDP is high than in the country as a whole.

1-15

Table 1-14 Economic Growth and GDP of the Target Area and the Country

from 2003 to 2007

(Units: 1994 prices, billion VND)

Province name 2003 2004 2005 2006 2007 Growth rate

Hanoi 26,397.9 30,652.6 34,073.5 38,088.0 42,696.6 12.8

Ha Tay 7,411.2 8,204.2 9,186.6 10,361.7 11,739.8 12.2

Vinh Phuc 4,506.7 5,294.0 6,241.7 7,277 8,761.5 18.1

Hung Yen 4,182.4 4,705.2 5,321.6 6,040 6,870.5 13.2

Bac Nin 3,807.1 4,283.0 4,839.7 5,493.1 6,344.5 13.6

Bac Giang 3,350.3 3,618.3 3,944.0 4,323.0 4,765 9.2

Target area 49,655.6 56,757.2 63,607.1 71,582.8 81,178.0 13.1

Whole country 336,242 362,435 393,031 425,088 46,1415.0 8.2

Target area/ whole country 14.8 15.7 16.2 16.8 17.6 158.8

(Source: Statistical almanac for each province)

1-16

The table below shows the economic structures of each province and of the target area.

Table 1-15 Production Value From Each Segment of Economic Structure in

the Survey Target Area

(Units: Million VND, %)

Province name GDP Agriculture, forestry and fisheries

Industry and construction Service

Hanoi 42,696.6 828 17,397 24,471.6

Ha Tay 11,739.8 3,052.3 4,930.7 3,756.7

Vinh Phuc 8,761.5 1,248.5 5,349.8 2,162.3

Hung Yen 6,870.5 1,779.5 2,940.6 2,150.5

Bac Nin 6,344.5 1,173.7 3,242.1 1,928.7

Bac Giang 4,765.4 1,904.8 1,363.6 1,496.9

Survey area 81,178.4 9,986.9 35,223.7 35,966.8

Whole country 461,415.0 83,054.7 193,794.3 184,566

Share of economy (%)

Hanoi 100 2 41 57

Ha Tay 100 26 42 32

Vinh Phuc 100 14 61 25

Hung Yen 100 26 43 31

Bac Nin 100 19 51 30

Bac Giang 100 40 29 31

Survey area 100 12 43 44

Whole country 100 18 42 40

(Source: Statistical almanac for each province)

The above table shows that the GDP shares for the industrial/construction sector and service

sector are higher than for the country as a whole, while the shares for agriculture, forestry and

fisheries is lower.

1-17

1.3.4 Key Development Plans

Key development plans in target area are as shown below.

(1) New residential planning

1)． Ha Noi

- Van Phu urban zone: located in the center of Ha Dong City with the scale of 94.1 ha. The

advanced infrastructure shall be at urban standard, Class I. In future, Van Phu shall

become the most modern urban in Ha Dong City.

- Van Khue urban zone: located in Ha Dong City, 23,9 ha, urban standard Class II.

- An Khanh new urban zone: almost 200 hecta, new urban complex with office building,

hotel, luxury accomodation, which shall be the most modern urban zone in Vietnam.

- Van Quan - Yen Phuc new urban zone: being planned equal to urban zone class I, 62 ha,

with population of 14,300. It is the first new urban zone in Hatay with synchronous

technical infrastructure, social infrastructure, accommodation building, public service,

sport & greenery zone.

- Van Canh university urban zone: with total planned area of 133.35 ha. It is the new urban

zone with many functions.

Figure 1-2 New Urban zone North An Khanh

- Me Linh urban zone: being approved by the Prime Minister in December 2004, it is a

satellite urban zone, an expanded zone keeping regulatory role for the development of the

center city.

1-18

2)． Hung Yen

- Van Giang tourism-trading urban zone: being planned in Long Hung commune with land

use area of 95.52 ha. According to the plan up to 2020, this new urban zone is at the scale of

119.88 ha; population of 12,000 people. The zone is for service-trade-accomodation

activities servicing people in ten region and in adjacent IZs.

Figure 1-3 Van Giang tourism-trading urban zone

3)． Bac Ninh

- Bac Ninh Town: Developing Bac Ninh town to be urban zone class III. When sufficient

conditions are available, it shall be developed to urban zone class II, deserving the

socio-culture-politics-economy center of the whole province.

- Tien Son new urban zone: The area is about 310 ha including the IZ, accomodationg

18,000 people

.

- Tu Son Town (Tu Son District): The planned acreage for town construction by 2010 shall

be 481 ha accomodating the population of 23,860 people.

- Lim Town (Tiªn Du District): development plan up to 2010 with the acreage of 513 ha,

accomodating the population of 20,000 people.

- Pho Moi Town (Que Vo District): is the urban zone located in the major economic zone of

the province. The development plan up to 2010 shall be with the acreage of 210 ha,

accomodating population of 20,000 people.

1-19

- Ho Town (Thuan Thanh District): development plan up to 2010 with the acreage of 511

ha, accomodating the population of 16,000 people.

- Thua town (Luong Tai District): development plan up to 2010 with the acreage of 692 ha,

accomodating the population of 12,000 people.

Figure 1-4 Tu Son Town - Bac Ninh Province

4)． Bac Giang

- Development planning for Bac Giang Town by 2020: being the center of

economy-politics-culture of the province; a center of training, tourism and service, with

important strategy on national defense and security. By 2009, population of the whole city

shall be 225,000 people, and 263,000 people by 2020.

(2) Plans for economic zones and industrial zones

1)． Ha Noi

- Organizing industrial zones and clusters along axes or corridors: Ha Noi - Soc Son; Gia

Lam - Sai Dong - Nhu Quynh - Pho Noi - Hai Duong - Hai Phong; Duoi Ca - Phap Van -

Van Dien - Thuong Tin - Kien Khe - But Son - Ninh Binh; Thuong Dinh - Ha Dong -

Xuan Mai - Hoa Binh - Mai Dich - Cau Dien - Son Tay; NH18 corridor.

- Besides Hoa Lac Hi-tech zone being constructed, there are 11 IZs with the area of

4,285ha, inwhich 5 nos. were approved by Prime Minister with an area of 2,500ha, 27

industrial clusters with area of 988ha, and 171 industrial groups for village craft with an

area of 1,265ha.

1-20

Figure 1-5 Hoa Lac Hi-tech zone

- Me Linh District is the food safety zone, where locates some enterprises and industrial

clusters operating in Izs. According to the data of PMU for industrial zones and clusters in

Vinh Phuc province, until the end of Oct/2003, the province has attracted 149 industrial

projects invested into Izs with total investment capital of 5,329.948 million USD and

many service and tourism projects. In Me Linh District particularly, some industrial

clusters have been established with many of which are under operation like:

a) Kim Hoa IZ with four projects, investment capital totalling 210.378 million USD.

b) Quang Minh IZ with 88 project, investment capital totalling 3,234.72 million USD.

c) Tien Phong IZ with 16 projects, investment capital totalling 1,007. 26 million USD.

Figure 1-6 Quang Minh IZ

2)． Hung Yen

- Hung Yen Province so far has planned 20 concentrated Izs to call for investors for

infrastructure construction in IZs. Planned land for the IZ development from now until

2015 is 6,155 ha, and 9,305 hta up to 2020, in which 6 IZs are listed in IZs development

plan in Vietnam up to 2015 and vision up to 2020.

1-21

- In addition, Hung Yen is planning 12 IZs for craft villages including: Minh Khai (plastic

production and re-production); Lac Dao (timber processing, carpentry, composite); Lieu

Xa (leather tanning and leather-origined products); Trung Hung (automobile trunk

production, repair); Di Su (plastic production, re-production); Xuan Quan (ceramics,

pottery production); Ngoc Thanh, Lien Khe, Thu Si, Dinh Cao (rattan, bamboo-based

products for export); Phu Ung (jewellery production); An Tao (crafts).

Figure 1-7 Pho Noi IZ

3)． Bac Ninh

According to the decision approving IZs plan in Vietnam, there are the following IZs of

priority for new establishment until 2015:

- Nam Son - Hap Linh IZ with planned area of 200 ha;

- Yen Phong II IZ with planned area of 300 ha;

- Que Vo II IZ with planned area of 200 ha;

IZs planned for expansion up to 2015 are:

- Que Vo IZ with expanded area (plan) of 300 ha;

- Tien Son IZ with expanded area (plan) of 100 ha;

- Dai Dong - Hoan Son IZ with expanded area (plan) of 300 ha.

It is expected by 2015, total area of IZs is 65,000 – 70,000 ha, and by 2020, IZ network

nation-wide shall be completed with total area of 80,000 ha.

1-22

Figure 1-8 Que Vo IZ

4)． Bac Giang

Period up to 2015: New construction of 5 IZs with total area of 1,031 ha.

- Quang Chau IZ (426 ha): priority given to construction material production, timber

processing, ship repair and building, lifting fork.

- Van Trung IZ (225 ha): priority given to electronic, machinery assembly, agricultural

product processing.

- Son Dong Thermal –Power IZ (100 ha).

- Song Khe - Noi Hoµng IZ (150 ha).

- Hiep Hoa IZ (100 ha).

Filling the old plan and expanding industrial cluster with area of 125.5 ha including cluster

of Doi Ngo, Tan Dinh, An Chau, Hong Thai, Cao Thuong, Dong Dia, Bo Ha, Hong Giang, Tan

An, and 5 clusters in Bac Giang City.

Period up to 2020: Upgarding industrial cluster in Bac Giang City to IZ, with 105.5 ha of

additional land.

- Expanding Son Dong Thermal IZ for 100-150 ha more.

- Constructing industrial cluster (Cao Thuong, My Ha - Ben Tuan, Cau Lo), expanding

some industry clusters for a total acreage of 100 ha.

(3) Power Development Plan

On 18/July/2007, Prime Minister has signed the Decision No.110/2007/QD-TTg approving

the National Power Development Plan period 2006-2015 with consideration up to 2025.

Accordingly, power should be sufficient to meet the national socio-economic development

demand with the GDP growth rate of 8,5-9 %/year in period 2006-2015.

1-23

Table 1-16 Power Projects up to 2025

No. Project Turbine x MVA

Capacity (MVA) Note

Projects for national grid development up to 2025 Period 2006-2010 1 Thuong Tin 1x450 450 Turbine 2 – 2008 2 Hiep Hoa (Soc Son) 1x900 900 Period 2011-2015 1 Hiep Hoa (Soc Son) 1x900 900 Turbine 2 2 Thuong Tin 1x900 900 Change MBA 1 3 Pho Noi 2x600 1200 Period 2016-2020 1 Thuong Tin 1x900 900 Change MBA 2 2 Bac Ninh 2x600 1200 3 Hoai Duc 1x900 900 4 Dong Anh 1x900 900 Period 2021-2025 1 Hoai Duc 1x900 900 Turbine 2 2 Dong Anh 1x900 900 Turbine 2 3 Bac Giang 2x600 1200 4 Pho Noi 2x900 1800 Change MBA 5 Vinh Yen (Yen Lac) 2x450 900 500 KV power line contructed up to 2025 Period 2011-2015

1 Hiep Hoa - Pho Noi 1x55 Considering the share of Power Post 220kV Hiep Hoa - Dong Anh - Long Bien

2 Turning to 500kV Pho Noi Station 4x5

3 Turning at Thang Long Thermal Power 2x5

Sychronous with Thang Long Power Plant. Being connected for transfer to Quang Ninh - Hiep Hoa Line

Period 2016-2020

1 Northern PSPP - Hoai Duc 2x110

2 Turning at Bac Ninh 2x5 Period 2021-2025 1 Turning at Bac Giang 2x10

2 Turning at Vinh Yen 2x20 Intermediate connection on the line of Northern PSPP - Hoai Duc

3 Turning in Phu Yen 2x5

1-24

No. Project Turbine x MVA

Capacity (MVA) Note

220kV station constructed up to 2025 Period 2006-2010 1 Thanh Cong 2x250 500 Turbine 1 in 2006 2 Xuan Mai 1x250 250 Turbine 2 approved in 2008 3 Long Bien 1x250 250 4 Son Tay 1x250 250 5 Thuong Tin 1x250 250 6 Bac Ninh 2x250 500 Change turbine 7 Bac Giang 1x125 125 Installing tubine 2 8 Vinh Yen 2x125 250 Period 2011-2015 1 An D-uong 1x250 250 Turbine 2 2 Dong Anh 1x250 250 Turbine 2 3 Long Bien 1x250 250 Turbine 2 4 Hoai Duc 2x250 500 5 Chuong My 2x125 250 6 Son Tay 1x250 250 Turbine 2 7 Xuan Mai 1x250 250 Turbine 2 8 Thuong Tin 1x250 250 Turbine 2 9 Pho Noi 2x250 500 Change turbine 10 Kim Dong 1x250 250 Turbine 2 11 Tien Son 1x250 250 12 Yen Phong 1x250 250 13 Bac Giang 2x250 500 14 Vinh Yen 2x250 500 Change turbine

When these electric power development plans are realized, it is necessary to supply enormous

fuel such as coal, oil, and LNG to the power plants. The planed maximum generating power from

2006 to 2020 goes up to 12,750MVA according to Table 1-16. The coal of about 130,000 tons or

LNG of about 60,000 tons is required if the generating unit of 500MVA operates for one month and

the power generation efficiency is to be 40%. 13,000 tracks a month or 430 tracks a day is needed

for carrying the coal even if it loads it into the heavy-duty truck of the load ten tons full for coal. If

planed maximum generating power around Hanoi is realized, about 110,000/the day tracks go in

and out for coal, or and about 50,000/the day large-scale tank lorries will go in and out to the power

plants.. This will lead to increase of the traffic demand for Ring Road 4, along with a new city

planning and the achievement of the industrial zone construction plan.

1-25

(4) Plan for tourism spatial development

- Tuan Chau tourism zone: located at the foot edge of Thay Pagoda Mountain. It is the

ecology and entertainment tourism zone in Vietnam, 252.2 ha.

- Tam Dao 2 tourism zone: with internationally potential tourism site, adding the diversity of

tourism ring network including Dai Lai, Tay Thien, Tam Dao, Truc Lam Zen monastery.

2-1

Chapter 2 Study Methodology 2.1 Details of Survey

The field survey aims to collect information on development plans related to the project and existing

survey data, consult with related organizations, conduct on-the-spot investigations, and gather

information from the proposing corporation’s local offices, related local institutions, other entities that

implement PPP projects, etc. In addition to closely examining locally collected materials, domestic work

involves studying how PPP projects are implemented in Vietnam, developing a project method that

incorporates the results of such study, and conducting economic and financial analyses. The flow chart of

the survey is shown in Figure 2-1.

Figure 2-1 Flow Chart of Study

Survey preparations

Fact-finding survey for PPP projects

Field survey

Interviews with local government agencies

Analysis of current traffic

volumes Reorganization and analysis of

data to grasp the current condition

Forecasting traffic

demand

Examination of overall road plans Road plans Bridge plans and process

examination

Calculation of project costs Setting of PPP project cases

* Examining several proposed BOT and BT schemes based on the results of the fact-finding survey

Economic and financial analyses of

each case

Consultations with related agencies Compilation of a report

2-2

2.2 Study Organization The organization for conducting a field survey is shown in the figure below. The Study Team consists

of the project manager, who is responsible for coordinating and supervising the overall survey, as well as

members that are in charge of traffic plans and demand forecasts, road plans, bridge plans, consideration

to the environment and society, road maintenance and management plans, economic and financial

analyses, and funding plans and project methods. In this survey, it is important for team members to

perform their work according to the planned work schedule because analyses by each of them and their

results are closely related to survey items for which others are responsible. The project manager made

the objectives of the survey and details of work known to all team members and constantly confirmed

the progress in the work performed by each member. In order to ensure that the intended results are

obtained, the project manager held preliminary discussions for coordination when necessary.

When the unexpected problem that affects the work schedule occurs during the survey, the project

manager would strive to solve the problem in cooperation with the members.

Figure 2-2 Structure of the Study Team

Project Manager Hiroo JIN Nippon Engineering Consultants Co., Ltd.

Traffic Planning, Demand Forecast Esuke AOKI Nippon Engineering Consultants Co., Ltd.

Bridge Planning Tatsuo AOKI Nippon Engineering Consultants Co., Ltd.

Cost Estimation of Steel Bridge Shunsuke MACHINO Nippon Steel Topy Bridge Co., Ltd.

Study on PPP, Funding and Business Method Kazuya MURAMATSU Nippon Engineering Consultants Co., Ltd.

Environmental/Social Impact Analysis Jun NAKAMURA Nippon Engineering Consultants Co., Ltd.

Road Plannning Kokichi TERAI Nippon Engineering Consultants Co., Ltd.

Operational CoordinationSatoshi YOSHIZAKI Nippon Engineering Consultants Co., Ltd.

Cost Estimation of PC Bridge Yukihiko NASHIMOTO Shimizu Corporation

Study on PPP, Operation & Maintenance Yoshiharu YONEZU Central Nippon Expressway Co., Ltd.

2-3

2.3 Study Method

2.3.1 Project Plan

A project plan will be developed based on information gathered from various sources (including

existing study materials obtained in advance, yearbooks on Vietnam and the project area which

describe local socioeconomic conditions, data on current transportation and traffic conditions, future

development plans, and regional master plans) as well as the results of interviews with officials from

local government agencies and other organizations.

2.3.2 Traffic Demand Forecasts

The final study report for Ring Road No. 4 is currently being deliberated by the Vietnamese

government. In order to forecast future traffic volumes, it is necessary to confirm details of these

materials, but in this survey, future traffic demand will be analyzed referring to the results of

estimation in the existing study.

2.3.3 Road Plans

The Study Team investigated obstacles for the Project such as geographical features, settlements,

large-scale facilities, buildings, and cemeteries which affect the horizontal alignment of the planned

road. In accordance with road structure standards in Vietnam, it also examined the appropriateness of

the horizontal and vertical alignment of the planned route as well as the cross-sectional structure of

the road. Furthermore, the team considered countermeasures against soft ground because areas with

soft ground are distributed along the section of the road between the point where it crosses the

Hanoi-Laocai Expressway and its terminal where it meets National Road No. 32.

2.3.4 Bridge Plans

A number of options for the long-span Red River Bridge are studied in the existing study report

compiled by MOT. The project team analyzed the geological conditions in the vicinity of the area

where the bridge will be built and the results of hydrologic surveys for the river, a major feature that

crosses the road, referring to the results of the preliminary feasibility study carried out by TEDI, a

transport consultant firm under MOT’s control, those of design of the Nhat Tan Bridge, which is

being constructed on the downstream side of the Red River Bridge, and other materials.

The Study Team considered methods to improve several options proposed in a existing study by

balancing in the main stream between the minimum span, which is determined by the route width,

and the number of sub and basic structures, which will be built on the water, and analyzing the range

2-4

that allows land construction during the dry season.

2.3.5 Construction Plans and Cost Estimation

The Study Team developed construction plans for the long-span bridge with temporary

construction and temporary equipment/machinery in mind. Past examples of temporary construction

in Vietnam include temporary piers and temporary coffering, and a typical example of temporary

construction and temporary equipment/machinery is found in the Nhat Tan Bridge, which is now

being constructed energetically. Quantities are based on those that are newly designed for this project.

In estimating costs, the Study Team took into account recent sharp rises in the costs of raw materials,

regional differences in labor costs, and consumer price indexation referring to the past contract prices

in Vietnam.

2.3.6 Studies of Environmental and Social Aspects

The Study Team reviewed the interim report on initial environmental examinations (IEE)

obtained in advance. The information included in IEE was only basic, but the Team tried to obtain

supplementary information by interviewing environmental consultants who had been engaged in IEE.

In addition, it confirmed through on-site survey the present condition of the project site. Based on the

foregoing, the Study Team examined the environmental impact that the project is expected to have.

Furthermore, it obtained information on and analyzed environment-related laws and regulations.

2-5

2.4 Study Schedule

2.4.1 Overview

The overall survey schedule is as shown in the table below.

Table 2-1 Overall Survey Schedule

2010 2011

Nov Dec Jan Feb

(Domestic work)

(1) Survey planning and report

(2) Future road plans and traffic volume forecasts

(3) Estimation of overall project costs

(4) Economic and financial analyses

(5) Examination and proposals for PPP project schemes

(6) Examination of effects on the environment and

society

(Work in Vietnam)

(1) Collection of existing materials

(2) On-the-spot investigations

(3) Surveys of the environment and society

(4) Fact-finding survey for PPP road projects using

private vitality

(5) Compilation and submission of a report

2-6

2.4.2 Field Survey

The field survey in Hanoi, Vietnam, was carried out from Monday, November 29 to Wednesday,

December 8, 2010. Details of activities in the city and persons met during the survey are listed in

Tables 2-2 and 2-3.

Table 2-2 Itinerary for the Field Survey

Date Activities Place Details

November 29 (Monday)

11:00: Leave Narita 15:30: Arrive Hanoi

November 30 (Tuesday)

09:00: Embassy & JICA Afternoon: PMU2 & JETRO

Hanoi Courtesy call

December 1 (Wednesday)

09:00: TEDI Afternoon: MPI & HPC/HAPI

Hanoi Working-level consultations

December 2 (Thursday)

09:30: MOT Afternoon: Field survey (Area north

of Red River)

Hanoi – Trung Gia – Phuc Yen - Me Linh - Hanoi

Overall route investigations

December 3 (Friday)

09:00: BITEXCO Afternoon: VINACONEX Afternoon: Route, environmental, and

route surveys by group 16:30: Preliminary meeting with

PMU2

Hanoi

Fact-finding survey for PPP projects, on-the-spot investigations, and preliminary discussions

December 4 (Saturday)

Field visits (Inspection of Red River by boat and visit to the area south of the river by car)

Hanoi - Red River - Phung - Hanoi

Bridge site and overall route investigations

December 5 (Sunday)

Holiday

December 6 (Monday)

09:00: Him Lam Afternoon: Visit to the construction

site for the related Project

Hanoi Office (Hoan Kiem) and the construction site for related Project

Fact-finding survey for PPP projects and field visits

December 7 (Tuesday)

Morning: Collection and reorganization of materials

Afternoon: Visit to the Him Lam construction sector

Hanoi Inspection of the area south of National Road No. 32

Collection and analysis of materials, and route inspections

December 8 (Wednesday)

00:10: Leave Hanoi 06:40: Arrive Narita

Overnight on board

2-7

Table 2-3 List of Persons with whom Study Team had meeting

Place Persons with whom team members had a meeting

JETRO Chief Representative and Deputy Director

Japanese Embassy First Secretary

JICA Chief Representative and Senior Representative

Ministry of Transport General Director and Deputy Director General of Planning and Investment Department

Ministry of Planning and Investment Vice Minister

PMU-2 General Director and Director (PMU-6), Section Manager (PMU-6)

HPC /Hanoi Authority for Planning and Investment (HAPI)

Vice Director, Director of the Investment Promotion Center, and others

TEDI Chairman & Director General, Vice General Director, Director

BITEXCO (real estate company), which has experience in BOT projects in Vietnam

Financial Investment Director and Manager

VINACONEX (construction company), which has experience in BT projects in Vietnam

Deputy Director General and Director of Department of Construction

Him Lam’s Hanoi Office (comprehensive real estate development and construction)

Director and two personnel

2.4.3 Domestic Survey

The domestic survey period is from November 26, 2010 to February 21, 2011, excluding period

from November 29 to December 8, during which the field survey is conducted. The domestic survey

consists mainly of reading and analyzing existing materials, studying cases of PPP projects, and

conducting economic and financial analyses of such cases.

2.4.4 Debriefing Session

Debriefing session was held on December 21, 2010 to present an interim report. Debriefings in

Hanoi were held from January 19 to 21, 2011 to explain to related Vietnamese organizations. A

final debriefing in Tokyo was held on February 8.

2-8

Table 2-4 Itinerary for the Debriefing Session in Hanoi

Date Activities Place Details

January 18 (Tuesday)

11:00: Leave Narita 15:30: Arrive Hanoi

January 19 (Wednesday)

08:30: MPI 10:00: Japanese Embassy 15:00: JETRO

Hanoi Debriefing

January 20 (Thursday)

10:00: JICA 16:00: HPC/HAPI

Hanoi Debriefing

January 21 (Friday)

09:30: PMU 2 Hanoi – Trung Gia – Phuc Yen - Me Linh - Hanoi

Debriefing

January 22 (Saturday)

00:10: Leave Hanoi 06:40: Arrive Narita

Overnight on board

3-1

Chapter 3 Justification, Objectives and

Technical Feasibility of the Project

3.1. Background and necessity

3.1.1. Project background Hanoi is the political and cultural center of Vietnam, and at the same time, it is a core city for

commerce, trade and tourism, and a central region for science and technology. Therefore, it is also

an important transport hub in Northern Vietnam, with an east-west spread of 600km. Hanoi has

seven radiating trunk National Routes. National Routes 1, 2, 3, 5, 6, 18, and 32 flow into the city

from all directions. The majority of traffic and transportation passing through Hanoi depends on

these radial roads, and the development of the road network is not keeping up with the rising traffic

flow that has accompanied the rapid population growth of recent years (to 6.2 million in 2008).

This combines with the extraordinary rise in motorcycle traffic, caused by the inadequacy of public

transport networks, to cause congestion on main roads within Hanoi, night and day.

The Vietnamese government is developing the Ring Road (routes 1~3) with the aims of

facilitating the passage of traffic through the Hanoi capital region, alleviating congestion within the

city, and improving access from Hanoi to Noi Bai International Airport and the port and industrial

parks etc. in Hai Phong. It also plans to add a new Ring Road 4 (six lanes) outside route 3 to handle

the rapid expansion of Hanoi. The Hanoi Ring Road 4 project was included in the Master Plan

written by the Ministry of Transport (MOT). The plan was approved by the prime minister in 2008.

Within that project, the current survey covers the north-western portion (37km from Trung Gia

to Phung) within the whole length of Ring Road 4, which the Vietnamese government plans to give

the highest development priority. That section includes a long-span bridge of 5km which crosses

the Red River, and the challenge is to redeem the funds required for the development of the section

including the bridge, funding procurement, formulation of the operation management plan, and the

related road’s construction, operation and management.

3.1.2. Project necessity In 1998, the Hanoi People’s Committee produced its “2020 Hanoi Urban Development Plan”,

3-2

which included plans for developing Ring Roads 1~4. The aims for building the Ring Road are 1)

to facilitate the flow of traffic passing through the Hanoi capital region and relieve traffic

congestion inside Hanoi, and 2) to improve access to central Hanoi, Noi Bai International Airport,

Hai Phong port and surrounding industrial parks. In 2001, the Hanoi People’s Committee produced

its “2020 Hanoi Urban Development Plan”, which included plans for the Hanoi metropolitan area

to expand to 30~50km out from the current center, and for the early development of the group of

cities on the west side of Hanoi.

In 2005, the Ministry of Transport produced its “National Transport Strategy Concept for

Vietnam in 2020”, which included a revision of part of the route for Ring Road 4, which was

approved by the prime minister in 2008.

When the whole of Hanoi Ring Road 4 is complete, it will have the following effects: 1)

Facilitate transport between cities in the north of Vietnam, and 2) relieve traffic congestion in

Hanoi. In the period before completion, it can be expected to create jobs for road construction

along its 136km length. Before completion of the entire route, the completion of a 37km

section from Trung Gia to Phung will improve logistics and will provide the following effects:

1) Promotion of the redevelopment to the north area of the Hong River (Thang Long

districts), and 2) Relaxation of the traffic jam of the Hanoi city as the Outer Ring Road. Once

Ring Road 4 is complete, it can also be expected to improve the environment in the city, by

reducing noise and atmospheric pollution.

3.1.3. Comparison between the proposed project and alternatives

As shown in the table below, the option with the least environmental impact from a short-term

perspective is “zero option” without project. As described above, however, the proposed project is

expected to make a great contribution to easing traffic jams and the growth of the local economy. It

is believed that the project will be able to maximize positive effects on the environment and society

by taking appropriate measures to reduce negative impacts.

3-3

Table 3-1 Comparison between the proposed project and alternatives

Alternative 1 Zero option

Alternative 2 Ferry service between the

crossing points

Alternative 3 Proposed project

Advantages ・ Least direct impact on the environment

・Less environmental impact at crossing points

・Respond to increased traffic volume in the future and promote well-balanced development of the entire Hanoi city

・Contribute to the growth of the local economy

Disadvantages ・Can neither promote development of Hanoi city nor respond to further traffic jams

・Cannot respond to increased traffic volume in the future

・Does not contribute to easing traffic jams

・Involves large-scale relocation of residents

・Involves environmental impacts including an impact on the crossing the Red River

3-4

3.2 Examination Necessary for Defining Project Content

3.2.1 Existing Reports

Brief explanation of the existing reports related to the Project is as follows:

(1) National Transport Development Strategy in Vietnam till 2020 – Potential and Opportunities –

(2005, MOT)

The following basic policies concerning transport infrastructure in the Hanoi Metropolitan

Area are discussed in this development strategy:

Transport infrastructure projects must be given equal priority as other infrastructure

development projects and must be implemented in line with the city’s overall development

plan in order to effectively serve the capital region’s social-economic activities.

Land used for transport infrastructure, including parking and station facilities, should

constitute an average 25% of the overall urban land area.

Public transportation as a percentage of total passenger transport should be increased to

30% by 2010 and 50% by 2020.

Improve and widen national highways running to or through Hanoi: National Highways No.

1, 2, 3, 5, 6, 18 and 32 and Lang-Hoa Lac Highway.

Complete Hanoi Ring Roads No. 1, 2 and 3, and evaluate the feasibility of Ring Road No.

4.

In addition to the existing Thang Long and Chuong Duong Bridges and the Thanh Tri

Bridge currently under construction, the Long Bien Bridge should be replaced with a new

bridge in order to promote the growth of the Hanoi Metropolitan Area both to the south and

north of the Red River.

In addition, the development plan concerning transport infrastructure for northern Vietnam

calls for the upgrading and complete linkage of Belt Roads I, II, III, IV and V, which provide

access among neighboring provinces of Hanoi.

(2) The Construction of Investment Project of Ring Road VI-Hanoi City – Summary of Preliminary

Report- (2005, MOT)

The MOT has conducted a study on Ring Road No. 4 and an outer ring road proposed by

3-5

them, as part of a feasibility study on Ring Road No. 4 indicated by the National Transport

Development Strategy in Vietnam till 2020 (2005, MOT). The route proposed by the MOT is

located further outwards from central Hanoi than Ring Road No. 4 and is designed to link

together the six provinces surrounding Hanoi. It is intended to fulfill the following functions:

(1) Alleviate congestion of traffic (buses, cars, trucks, motorcycles, etc.) inside Hanoi City

(2) Ensure smooth travel between Hanoi’s neighboring provinces, and reduce the load on ring

roads in Hanoi City

As a result of the study, the MOT concluded that two, rather than one, ring roads are

required, as follows:

(1) A ring road inside Hanoi City or running along the perimeter of the city.

(2) A ring road linking neighboring provinces of Hanoi

In 2008, the above outer ring road proposed by MOT has been approved as the Hanoi Ring

Road No.4 by the prime minister.

(3) Preliminary Study on Hanoi Ring Road No.4 Construction and Peripheral Roads Improvement

Project (2006, Ministry of Land, Infrastructure and Transport Japan)

The necessity, appropriateness and urgency of the project implementation regarding the

Hanoi Ring Road No.4 as well as National Highways No. 2, 6 and 32 were reviewed.

At the same time, the coordination with other development plans was ensured.

(4) Study Report 2009 Hong Ha Bridge In the Hanoi Ring Road No.4 Construction Project (2009,

Ministry of Land, Infrastructure and Transport Japan)

The Government of Viet Nam places top priority on the construction of the western side of

Ring Road 4. The project reviewed by the Survey, the Ring Road 4 Hong Ha Bridge

Construction Project, is part of the planned route for the top-priority western side. Transport

Engineering Design Incorporated (TEDI), which operates under the MOT, has prepared a basic

bridge plan for the project. This survey was conducted to review the project with reference to

the basic bridge plan prepared by TEDI and to help realize the project under Japanese ODA.

(5) Hanoi Capital – Ring Road 4 Project Final Report (2010, TEDI)

Following the approval by the prime minister, MOT asked TEDI for feasibility study of Ring

3-6

Road No.4 in 2009.

The project implementing body is transferred to Hanoi people's committee by a prime

minister statement of March, 2010 and will carry it out by a PPP scheme. On the basis of it, the

FS report was revised, and the final report has been submitted to the government in the end of

November, 2010, and is awaiting prime minister’s approval now.

3-7

3.2.2 Traffic demand forecast

(1) Current Condition of the Project site

1)． Traffic volume near the Project site

The outline of the traffic volume survey implemented by (Transport Engineering Design

Inc., hereinafter referred to TEDI）in 2004 is as shown below.

Figure 3-1 Location of Traffic Survey

Intersection of NH32-PR70

Intersection of NH3 - PR35

Intersection of NH2- Noi Bai Airport South

3-8

- Intersection of NH3 – Provincial Road (PR) 35

Main traffic flow is through traffic of NH 3 (North - South). As for traffic to Phuc Yen, more

traffic is from Thai Nguyen. Vehicle for direction A and C 1,400 cars and 3,500 motorbikes

were recorded.

direction cars two wheels

A 927 1,660

B 3,288 3,508

C 474 1,846

car numbers/ 21 hour

Dec. 29th 2004

- Intersection of NH2- Noi Bai Airport South

More traffic are observed in through traffic between Northern Hanoi or Noi Bai Airport and

RR3 (Tang Long Bridge) , and also in between Phuc Yen and RR3 (Tang Long Bridge).

As for traffic of direction B+E+F, south to this point, 11,900 cars and 7,000 motorbikes are

observed.

Traffic dispersal due to Hong Ha Bridge is expected since more traffic flow between Phuc Yen

and RR3 (Tang Long Bridge) (Direction F) is observed.


A 479 550

B 6,749 1,189

C 60 290

D 1,955 2,136

E 455 455

F 4,705 5,412


Dec. 29th 2004

A

C

Thai Nguyen

Phu Lo

B

Phuc Yen

A C

F E

Phuc Yen Phu Lo

Noi Bai airport

B

D

Thang Long bridge

3-9

- Intersection of NH32-PR70

More Traffic is observed in through traffic between center of Hanoi and Tran Troi (East-West),

where 2,200 cars and 2,200 motorbikes are observed.

North-South Traffic is not increasing so much. This could be considered because there is no

bridge across Hong Ha for now .


A 92 1,686

B 621 350

C 431 2,163

D 2,206 2,219

E 339 1,169

F 579 2,201


Dec. 29th 2004

2)． Transition of volume of passengers carried by the road by province

Transition of volume of passengers carried by the road by province after 2,000 is as shown below.

Passenger Transport is rapidly increasing in Hanoi, while increasing 8 times from 2000 to 2008 in

Vinh Phuc , where Japanese companies have advanced, and increasing 2-3 Times in other

provinces

Table 3-2 Transition of volume of passengers carried by the road by province

A C

F E

Thuong Cat

B

Tram Troi Cau Giay

Tay Mo

D

地域 2000 2001 2002 2003 2004

Ha Noi 33,453 33,661 69,939 213,200 274,700

Ha Tay 7,700 8,600 11,000 10,900 11,600

Vinh Phuc 882 890 1,394 1,400 2,600

Thai Nguyen 1,397 1,420 1,581 1,900 2,300

Bac Can 668 651 715 1,113 1,192

Phu Tho 1,769 1,856 2,509 2,412 2,532

Bac Giang 3,300 3,400 3,421 3,722 4,100

地域 2005 2006 2007 2008

Ha Noi 335,300 375,500 413,200 495,800

Ha Tay 16,800 22,800 23,300

Vinh Phuc 3,900 4,200 6,000 7,000

Thai Nguyen 2,400 3,100 3,900 4,700

Bac Can 1,225 1,330 1,300 1,500

Phu Tho 2,911 3,441 3,800 4,200

Bac Giang 4,712 5,736 7,500 9,500 単位：千人

※道路での輸送実績であり、水上交通等は含まない。 Source: Statistical Yearbook 2009

Province

Province

Unit: Thous-and people

3-10

3)． Transition of volume freight by the road by province

Transition of volume of freight by the road by province after 2000 is as shown below.

Freight by the road is increasing in every provinces; 6 times from 2000 to 2008 in Vinh Phuc

and Phu Tho, while 5 times in Hanoi (including Ha Tay annexed in 2008)

Table 3-3 Transition of volume freight by the road by province

(2) Future traffic forecast

Estimating future traffic demand, there are so much various methodology to be considered in

general. In the region where the Project is planed, traffic volume is expected to increase with

economic development. In the existing report, forecast for future traffic demand was performed,

using value of elasticity in relation with GDP and domestic transport. Future traffic forecast is

examined in this section based on the result shown in the existing report.

1)． Increase of GDP and future estimation

Increase of GDP is estimated as below.

According to World Economic Outlook (Oct 2010) by IMF, GDP in Vietnam increases

6.95% per year during 2005-2010, which is correspondent with the estimation shown below.

地域 2000 2001 2002 2003 2004

Ha Noi 6,272 7,634 9,660 12,762 15,314

Ha Tay 4,837 5,230 7,620 9,953 12,901

Vinh Phuc 1,343 1,560 2,246 3,342 4,344

Thai Nguyen 2,462 2,600 3,321 4,102 6,107

Bac Can 1,016 1,111 1,178 1,440 1,571

Phu Tho 2,241 2,701 3,553 4,784 5,483

Bac Giang 2,126 2,212 2,433 3,967 4,086

地域 2005 2006 2007 2008

Ha Noi 16,634 20,460 32,210 55,203

Ha Tay 15,350 17,254 18,520

Vinh Phuc 4,889 5,867 7,360 8,449

Thai Nguyen 7,346 7,936 9,594 10,294

Bac Can 1,342 1,399 1,563 1,937

Phu Tho 6,830 8,982 12,225 14,022

Bac Giang 4,236 4,469 5,390 6,045 単位：千トン

※道路での輸送実績であり、水上交通等は含まない。 Source: Statistical Yearbook 2009

Province

Province

Unit: Thous- and tons

3-11

Table 3-4 Increase of GDP

2)． Method of Future Traffic Forecast

In the existing report, value of elasticity is set out based on relationship between GDP and

domestic transport, which is used for future traffic forecast.

For reference: Method of Future Traffic Forecast

model formula: YN+T = YN ( 1+αtEt )T

Method for calculating value of elasticity（Ｅ）

Et = ( ) /

( ) /Y Y Y

X X Xt t t

t t t

−−

− −

− −

1 1

1 1

= t

ttt YYYα

11 /)( −−−

YT：traffic volume at yearｔ XT：GDP per capita at year ｔ

YN：traffic volume at base year αt：Increasing rate of GDO at yearｔ

Future traffic volume estimated through this method is shown as below.

In 2015, when the proposed Road is expected to start its operation, 16,000 cars are

estimated to use at the section NH3 - NH2, while 22,000 cars are estimated to use at the section

NH2 – NH32.

Traffic volume is estimated to increase, and 45,000 cars are estimated to use at the section

NH3 - NH2, while 61,000 cars are estimated to use at the section NH2 – NH32.

03-05 06-10 11-20North West 4,400 4,925 6,498 11,206 5.8 5.7 5.6North East 25,378 29,327 41,133 77,213 7.5 7 6.5

Red River Delta 79,874 94,550 138,926 286,330 8.8 8 7.5Study Area 109,652 128,803 186,557 374,748 8.38 7.69 7.22

Whole country 335,989 392,776 550,889 1,033,597 8.12 7 6.5Source: Development Strategy-MPI

Growth　RateRegion 2003 2005 2010 2020

3-12

Table 3-5 Future traffic forecast

Table 3-6 Future traffic forecast (by type of vehicle)

3) Examination of the future traffic demand forecast

We have examined the estimated future traffic demand forecast shown in the Table3-3 in

comparison with existing another report regarding Nhat Tan Bridge Feasibility Study. In the Nhat

Tan Bridge F.S report, future traffic demand forecast of the seven bridges crossing Red River

including Hong Ha Bridge in the RR.4 has been studied and shown in the Table3-7

Unit：PCUSection 2010 2015 2020 2025 2030

NH3 – NH2 9,716 15,931 25,093 34,121 45,131NH2 - NH32 13,169 22,458 33,076 45,624 60,896

Unit：PCUSection Vehicle 2010 2015 2020 2025 2030

Car 851 1,508 2,524 3,565 4,907Small Bus 566 1,003 1,678 2,370 3,217Big Bus 456 808 1,353 1,912 2,594Light truck 2,226 3,876 6,380 9,011 12,127Medium truck 2,779 4,841 7,968 11,254 15,0603 axle truck 794 1,384 2,277 3,217 4,305Truck > 3 axle 316 550 905 1,278 1,710Other 40 70 115 163 218Motorbike 1,688 1,892 1,892 1,352 992Total 9,716 15,931 25,093 34,121 45,131Car 1,134 2,010 3,058 4,320 5,946Small Bus 2,121 3,760 5,722 8,082 10,969Big Bus 2,251 3,990 6,071 8,575 11,639Light truck 1,232 2,145 3,210 4,534 6,101Medium truck 1,420 2,473 3,700 5,226 6,9943 axle truck 2,599 4,527 6,774 9,567 12,803Truck > 3 axle 1,120 1,950 2,919 4,122 5,517Other 21 37 55 78 105Motorbike 1,271 1,567 1,567 1,120 822Total 13,169 22,458 33,076 45,624 60,896

NH3-NH2

NH2-NH32

3-13

Table 3-7 Future traffic demand forecast at the seven bridges crossing Red River

Unit:PCU

Name of Bridges 2010 2020 2030

Hong Ha Bridge 40,780 86,974

Than Long Bridge 46,854 69,326 86,974

Nhat Tan Bridge 35,141 61,170 83,868

Tru Lien Bridge 44,858 80,762

Chuong Duong Bridge 63,253 68,329 77,655

Vin Thuy Bridge 37,483 58,092 93,186

Thanh Tri Bridge 51,539 65,248 111,824

Total 234,270 407,803 621,243

Growing ratio 1.00 1.74 2.65

Source: The Project of NHAT TAN Bridge and Approach Roads FS Report 2005

The traffic amounts of the Hong Ha Bridge is estimated to approximately 87 thousand vehicles

in the year 2030 in the Table 3-5. Though the amounts vehicle forecast in Table 3-5 are larger than

that of estimated this time, traffic concentrate around at the crossing river point in general so it

seems to be reasonable in comparison with other points.

In fact, as stated previously the observed traffic amounts at Than Long Bridge side at the cross

section of the NH2 and Noi Bai Airport was 12 thousands vehicles, but the averaged daily traffic

amounts of crossing Than Long bridge was 20 thousands in the same year. So generally speaking

the traffic amounts at the river crossing section is larger than that of the roads around it.

And when we see the growing rate of the estimated traffic amounts from 2020 to 2030, it was

found that growing rate was 2.1 times in the Table 3-5 but 1.8 times in the Table 3-3. The growing

rate of the GDP in recent years is approximately 7%. Considering that traffic demand will increase

with growing rate of increasing GDP, 1.8 and 2 .1 times of growing rate of traffic demand in 10

years seems to be reasonable.

So in this study we have decided to use traffic demand shown in the Table 3-3 for the financial

analysis, because it will be smaller than result of traffic demand forecast in the Table 3-7 and will

be safer side on estimating of the feasibility on various PPP scheme.

3-14

3.2.3 Analysis on Obstacle for the Project

(1) Route Study

1) Outline of Route

Hanoi Ring Road No.4 goes along Hanoi City and the neighboring provinces of Hung Yen, Bac Ninh, the Bac Giang, and it is an outer belt line of about 136km length to cross three river portions of Hong River and the branch through three long span bridges.

As for the road type, Expressway type with 6 lanes in the south section of NH.18 and Highway type with 4 lanes in the north section of NH.18 are planned.

The study section starting at Trung Gia in Soc Son district of Hanoi City (intersecting with Hanoi-Thai Nguyen expressway), passing between small hills of south-west area, going southward along provincial road No.35, intersecting with Hanoi-Lao Cai expressway and NH.2, cutting Yen Vien-Lao Cai railway by Hong Ha bridge, reaches the intersection with NH.32. Total length of the study section is about 37 km.

Route outline of the study section is shown in Figure 3-2.

3-15

Figure 3-2 Route Outline

118+7300.0

5.0

10.0

15.0

20.0

25.0

30.0

37.051

35.0

Hanoi-Thai Nguyen Expressway

Hanoi-Thai Nguyen RailwayNational Highway No.3

119+500119+750

Hanoi - Lao Cai Expressway- 1+451

National Highway No.20.0

Yen Vien - Lao Cai Railway2+600

National Highway No.235+800

Hong Ha Bridge North End8+960

Hong Ha Bridge South End13+400

18+940Natioal Highway No.32

Hong River

Trung Gia

Phuc Yen

Phung

Noi Dong

Bu Tri

Hig

hw

ay

(4 lan

es)

Exp

ress

way

(6 lanes)

[ KM ] [ Distance (km) ]

(16.67)

3-16

2) Results of Route Survey

Results of the route survey (field reconnaissance) in the study section are shown in Figure 3-3a and 3-3b.

Regarding the planning route, topographical conditions and considerations including issues on the road alignment are explained below:

2)-1 Topographical Conditions and Considerations in the Planning Route

(1) From Km118+730(start point of the study section) to Km129+500 (Highway Section)

・Passing flat area between hills. Elevations along the route are around 20 m (read elevations from a map).

・From Km126+750, the route goes along Provincial Road No. 35 (PR.35).

・Between Km128+000 and Km129+500, the route passes PR.35 along lakes. In the section that is near to the lake, it will be necessary to transfer the horizontal alignment to the west.

・At the Thanh Ha village, there are a church and a graveyard along PR.35, and they may be in the Right-of-Way.

(2) From Km129+500 to Km130+000 (Highway Section) ・The section that switches over from the hill zone to the flat land. Elevations along the route are

around 10 m.

(3) From Km130+000 to Km135+400 (Highway Section) ・The route goes along the flat countryside in a wide range. Elevations along the route are around 10

m.

・From Km130+000 to Km131+500, The route avoids Phu Cuong village residential area and detours around PR.35 in the west.

・The route deviates from PR.35 in the west from Km134+300 point.

・In Km135+400 point(intersecting with Hanoi-Lao Cai Expressway), an interchange is planned.

(4) From Km135+400 to Km0+0.0 (intersecting with National Highway No.2), (Expressway Section）・The route goes along the flat countryside where a village lies scattered. Elevations along the route

are around 10 m.

3-17

(5) From Km0+0.0 to Km8+960 (Expressway Section) ・The route goes along the flat countryside at around 8 meter elevation.

・The route crosses over the Yen Vien-Lao Cai Railway and the waterway at Km2+600 point.

・The route crosses over NH.23 at Km5+800. An interchange is planned in the south side (Km6+435).

(6) From Km8+960 to Km13+900 (Expressway Section) ・Hong Ha Bridge section (bridge length is about 5 km)

(7) From Km13+900 to Km18+940 (end point of the study section)（Expressway Section）・The route goes along the flat countryside at 7 to 8 meter elevation.

・An interchange is planned in the intersection with NH.32.

・Because high-voltage power line goes over a head in the intersection department with NH. 32, transference of the high-voltage line is necessary.

2)-2 Alignment of Road

The topography of the route has few ups and downs in both highway and expressway sections. In addition, countryside is most through the whole. The plan route satisfies horizontal and vertical alignment conditions throughout the whole.

3-18

Figure 3-3 (a) Route Survey

3-19

Figure 3-3 (b) Route Survey

3-20

(2) Topography and geology

1)． Topography

The Hong River, which bisects Hanoi, is a large river that originates in the Yunnan Province

of China. It has a total extension of 1,100 km and a drainage area of 140,000 km2. Major

tributaries such as the Da and Gam flow into the Hong River in Viet Nam. Later on, the

Duong, Day, King Tha, Bac Dang, Thai Binh, and other distributaries branch off from the

Hong River to create the Red River Delta.

Hanoi is located at the apex of the Red River Delta. It is where the Duong River leaves the

Hong River. The Duong flows east-southeast for about 100 km, after which it runs through

Hai Phong to empty into the Gulf of Tonkin. Meanwhile, the Hong River flows south-

southeast, running through Thai Binh City and Ninh Binh City to also empty into the Gulf of

Tonkin after about 120 km.

Land elevations in the Hanoi urban area are characterized by a lack of ups and downs,

ranging from 6 – 9 m at its highest point, which is the old built-up district to the northeast, to 3

– 4.5 m at the lowest point, which is to the south. In other words, the drainage area inclines

downwards from the north or northeast to the south. There are numerous depressions in the

city that turn into bogs during the rainy season and for this reason are not used for anything at

present. There are also many lakes and marshes that are used for recreation or fish cultivation,

as well as for flood control.

Source: “Report on the Preliminary Study on the Red River Inland Waterway Transport System”, JICA,

September 2001

2)． Geology Alluvial layers of the Quaternary period are found in northern Viet Nam, the delta area of

southern Viet Nam, and the coastal plains of central Viet Nam. Triassic layers are found over

broad areas of Hanoi’s northeastern section and the southwestern mountainous section.

In geological terms, the urban district of Hanoi lies within the alluvial plains of the Red

River Delta. The top layer consists of clay and silt layers down to about 20 m, below which

are layers of sandy soil. The geology of the Hong River is classified into the widely

distributed alluvial soil; soft, nutrient-starved soil; low-salt soil; and salty soil along the coast.


September 2001

3-21

(3) River and hydrological study The “River Transport Study” gives the findings of a detailed survey of Hong River conditions

carried out in 2002. Of this, findings that are likely to be relevant to bridge plan formulation are

outlined below.

1)． Water level and discharge

Comprehensive surveys of the physical characteristics of the Hong River in the Hanoi

segment were carried out in the dry and flood seasons, namely January and August of 2002.

The Hong River’s water level and discharge fluctuate greatly between the seasons. In Hanoi,

the water level can vary by as much as 9 m between the seasons, while the discharge can

increase by 10 to 20 times. On average, about 27% of the discharge from the Hong River’s

main stream flows into the Duong River.

The flow velocity is mostly 1.0 m per second or slower during the dry season and 1.0 – 1.8

m per second in the rainy season. The riverbed consists of finely sieved sand along the water

channel, with fine sand, silt, and clay mixed in along the shallows and high-water channels.

Judging from the flow velocities recorded, the fine sediment is likely to be highly movable

and easily transported as bed or suspended load. According to the flow velocity – grain size

distribution diagram based on measured values, the flow velocity falls in the scouring domain

during the flood season and the mid to scouring domain in the dry season.

Water levels observed at the Hanoi hydrological and meteorological observation are shown

in the Table 3-8, and diagram of the relation between water discharge and level at upper

stream of Than Long Bridge and Hanoi are shown in the Fig. 3-4

3-22

Table 3-8 Water Levels for Design, observed at the Hanoi hydrological and

meteorological observation(1956-2001)

Items Water Level (upper LSD level:m)

The highest water level in the history (in 1971) +13.97 * Design water level for dike(ranked special

class)in Hanoi ** +13.4

Annual mean water level at flood time +10.96 Water level for occurrence probability of 5%

(from 1995 to 2001) +9.52

Mean water level in flood season (from May to October)

+7.34

Mean water level +5.04 Mean water level in dry season

(from November to April) +3.47

Water level for occurrence probability at 95% (1995-2001)

+2.58

Annual mean water level in dry season +2.20 The lowest water level in the history (1960) +1.55

Note) LSD= Land Survey Datum (equal to National Elevation System)=CDL(Chart Datum Level at

Hon Dau) +1.86m;

* Observed ｄatum at Hanoi hydrological and meteorological observation

* * MARD standard（written in July 2002）

Source: ‘Red River transport study in Vietnam, March 2003 JICA

3-23

Figure 3-4 Diagram of Relation between Water level and Discharge of Hong Ha River

Source: ‘Red River transport study in Vietnam, March 2003 JICA

2)． Channel

Three alternative channels are given by TEDI for the Hanoi segment of the Hong River, in

line with past changes in the main channel. Of these, Alternative A appears to be the best

Water level-discharge curve at Than Long Br.

Water level-discharge curve at Hanoi Observation

Water Distribution diagram between Hong Ha River and Duong

3-24

choice at this stage of investigation in view of the following advantages: it allows inland water

transport to be maintained between Hanoi and Hai Phong by retaining passage to the Duong

River; it has the effect of preventing siltation in front of the seawalls of planned ports and

major facilities under study in connection with inland water transport development; and it

allows major irrigation intakes in the Hanoi segment to be maintained.

3)． The river with complicated channel

The Hanoi segment of the Hong River consists of many channels, and the channels and

sandbars show a strong tendency toward lateral migration and erosion/sedimentation. An

examination of past cross sections indicates that the cross section at the Thang Long Bridge is

highly stable. Conversely, at places such as the Chung Ha sandbar, riverbed elevation can

change dramatically by as much as 10 meters.

4)． Change in main channel

Most recently, the river has shown signs of changing its main channel from Alternative A to

Alternative C. The signs were observed after the 2002 flood season, and measures should be

implemented to prevent the change.

5)． Summary

In consideration of the sudden change in the river’s conditions, where the main channel is

showing signs of converting to a secondary channel, there is urgent need for channel

stabilization measures. The channel stabilization measures mentioned above should be

introduced in stages, and field investigations should be conducted at least twice a year, once

each in the rainy and flood seasons, to carefully monitor their effectiveness and impact. It is

also necessary to re-evaluate the plan, taking into consideration such aspects as actual

performance vis-à-vis the expected performance, priority level, timing, and scale of structure.

Additionally, dredging, implemented in a flexible and timely manner, should also be

considered.

(The Above is excerpt from “Basic Sinuosity Hong River in Hanoi”)

3-25

(4) Other natural condition

1)． Temperature and humidity

Northern Viet Nam, where Hanoi is located, has a subtropical climate, with monsoons

(seasonal winds) and four distinct seasons. The months from May to October, when

southwesterly monsoons arrive, are the summer (rainy) season. Heavy rains fall during this

season. Winter (dry season) falls from November to April, with humidity relatively low from

November to early January and extremely high from then to around April.

Weather observation stations at 15 locations throughout the country monitor and record

weather conditions in Viet Nam. Weather in Hanoi is monitored by the Lang observation

station, located near the city center.

Hanoi experiences sharp changes in temperatures with the seasons. Temperatures average 27

degrees Centigrade or higher from around May onwards and reaches the year’s highest in June

– August. Conversely, average temperature falls to around 22 degrees in November, making it

the most pleasant month in the year. In winter, temperatures drop to about 15 degrees and

misty rain falls nearly every day. Humidity is high, with the monthly average never falling

below 70%, according to statistics for 1995 – 2000.


September 2001

2)． Rainfall

According to statistics as of 1995 for average monthly rainfall, maximum daily rainfall, year

of occurrence, and average number of rainy days per month, Hanoi’s maximum annual rainfall

was 1,676.2 mm. The rainy season is from May to October, and maximum rainfall was

recorded in August at 318.4 mm. The dry season is from November to April, and minimum

rainfall was recorded in January at 8.6 mm. Maximum daily rainfall of 568.5 mm was

recorded in July 1902, and the annual number of rainy days was 144.5 days.

A look at more recent weather data, namely statistics covering 1995 – 2000, shows that

maximum annual rainfall occurred in 1997 at 1,913.9 mm. On a monthly basis, maximum

rainfall was recorded in August 1995 at 399.0 mm, while minimum rainfall was seen in

January 2000 at 2.5 mm.


September 2001

3-26

3)． Typhoons

Northern Viet Nam experiences northeasterly monsoons from November to April, which are

the winter months, and typhoons from May to October, which are the summer months.

Typhoons hit Hanoi 6 – 7 times each year, most of which are concentrated in the June –

October period.

Table 3-9 shows maximum wind speeds recorded during typhoons in 1963 – 1977. Within

the typhoon area, wind speeds can often exceed 40 m/second. Typhoons can cause damages

over a broad area, including urbanized districts, farmlands, and residential areas, as well as

seagoing vessels. Furthermore, along the Gulf of Tonkin and the coastal areas of Viet Nam,

high sea levels due to typhoons can cause severe flooding of low-lying areas.

Table 3-9 Record of Typhoons in Hanoi

Date Max. Wind Velocity(m/s) The Wind Direction

Nov.24,1963 22 North East

Sept.9, 1968 28 East North East

May 15,1969 30 South West

Oct.14, 1972 19 North East

Jun.14, 1974 20 North,North East

Jul. 21, 1977 28 North West

Source: “Report on the Preliminary Study on the Red River Inland Waterway Transport System”, JICA, September 2001

Typhoon 16 (Typhoon 9 in Viet Nam) created enormous havoc in central Viet Nam in 2009,

resulting in 175 persons missing or dead and over 22,000 units of collapsed housing.

4)． Earthquakes

Vietnam is located at the intersection between the circum-pacific earthquake zone and the

Mediterranean-Himalayan seismic belt. This area has a complicated crustal structure and is

known to have experienced large crustal movements in recent years. Major earthquakes

recorded in Vietnam in recent years are listed below.

Ha Bac Province, which is adjacent to Hanoi City, experienced earthquakes of magnitudes

5.6 and 5 in 1961 and 1986 respectively. The Red River Fault lies along the Hong River near

3-27

Hanoi. No earthquakes of magnitude 5.5 or stronger have been recorded along this fault

between 1903 and 1986.

Table 3-10 Record of Earthquakes in Vietnam

Year Location Magnitude Seismic Intensity aroundEpicenter（MKS-64）

1935 Dien Bien Phu 6.8 8～9

1961 Bac Giang (Ha Bac Province）

5.6 7

1983 Dien Bien Phu 6.7 8～9

1986 Yien(Ha Bac Province) 5.0 6～7

Source: “Report on the Preliminary Study on the Red River Inland Waterway Transport System”, JICA, September 2001

3-28

3.2.4 Examination on technical method

(1) Road Planning

1) Interchange plan

The four planned interchanges are the intersections with the Hanoi-Thai Nguyen expressway, with the

Hanoi-Lao Cai expressway, with the Me Linh urban zone (south of National Route 23) and with National

Route 32. The aim is to link the expressways and main radial National Routes, and the plan appears

appropriate.

Table 3-11 Interchange plan

Location Distance from

Start Point (km)Distance between ICs

Hanoi-Thai Nguyen Expressway 118+730 0.0 16.67

(Highway Section) Hanoi-Lao Cai Expressway

135+400

(-1+451) 16.67

7.876

(Expressway Section) Me Linh Urban Zone (NH.23) 6+435 24.546

NH.32 18+940 37.051

12.505

(Expressway Section)

2) Suitability of horizontal and vertical alignment

A Horizontal alignment

A-1 Highway section

The route chosen for the section between the start point at Km118+730 and Km129+500 passes over

flat land between two hills in a hilly area, and it satisfies the condition that minimum radius of

curvature R=400m.

The section between 129+500 and 130+000 was moved from hilly terrain to flat ground, and after

that, the 5.4km as far as the intersection with the Hanoi-Lao Cai expressway at Km135+400 or

Km-1+451 continues over flat countryside, and there are no problems with the horizontal alignment.

A-2 Expressway section

This section runs from the intersection with the Hanoi-Lao Cai expressway and crosses National

Route 2 and the Yen Vien-Lao Cai railway, heading towards the Hong River. It is a flat area of

countryside with scattered hamlets. The route alignment is planned to pass between hamlets, using

gentle curves that greatly exceed the minimum radius of curvature. The Hong Ha Bridge over the Hong

River is a straight line. On the south side of the Hong River, up to the intersection with National Route

3-29

32, which is the end point, the land is the same kind of flat countryside as on the north side, and the

horizontal alignment is gentle.

B Vertical alignment

The vertical alignment is planned with reference to topographic conditions, flood inundation levels,

intersections and railway clearances, the limit of navigation at the Hong Ha Bridge, and other factors.

As a result, both the highway sections and the expressway sections are well below their maximum

gradients (4.0% and 5.0%, respectively).

3) Points to consider about the planned route

The main points for consideration in route planning are as follows:

- The section between 128+000 and 129+500 along the lakeshore runs along the Provincial Road

No.35. The section close to the route might need to have its line shifted to the west.

- The Thanh Ha hamlet (at 127+200) has a church and graveyard alongside the road, so those might

have to extend into the road site.

- High-voltage power lines pass above the intersection with the National Highway No.32 (at 18+940),

and will have to be relocated.

4) Countermeasures against soft ground conditions

According to ground survey results, the clay stratum is a deep, soft layer, mainly on the south side of

the Red River. On the south side of the river, embankments in many places will be built directly on top

of a soft layer between 6m and 28.5m thick. Embankment height in the survey area is mainly 2m or

more.

On the North side of the Red River, the soil is mainly clay, but it is a relatively hard layer, so

alignment is not critical.

Construction countermeasures against soft ground conditions in this project area have been considered,

and as a result, the following construction method is planned.

1. Geotextile material should be used together with embankment as countermeasures for

consolidation settlement.

2. Plastic vertical drains (PVD) should be used if the soft layer is less than 20m thick, and sand

drains (SD) will be used if it is 20m or thicker. In that case, a nonwoven geotextile should be

used between the soft layer and the embankment, and a sand mat (0.6m thick) should be spread

above that as a drainage layer. One or two layers of woven geotextile shoud be used on top of the

sand mat to stabilize the embankment.

3-30

3. Where the soft layer is 25m or more thick, or where the embankment is 7m or more high (for

road sections at the ends of bridges), U-shaped retaining walls or load-reduction platforms should

be placed on top of RC piles.

Table 3-12 Planned Countermeasures against Soft Ground

The plan shown above has been determined through consideration of economy and the capacity of

construction machinery, and seems to be appropriate.

Furthermore, as this plan is pioneer construction, trial construction should be performed ten months in

advance of the main construction for each pattern of ground strata, then the potential for compaction

subsidence will be re-examined and the plan revised before main construction starts. With this process,

there are unlikely to be any problems.

CountermeasurePlastic Vertical Drain

(PVD)

Sand Drain(SD)

U-shaped Retaining Wall orLoad Reduction Platform

Thikness ofsoft soil layer

＜ 20m ≧20m ≧25m

Average heightof embankment

＜ 3.5m ≧3.5m or ≧7.0m

Drain pitch 1.2～2.0m 1.5～2.5m

Depth of drain 7～18m 10～25m

Geotextile Combination use Combination use

Sand mat 0.6m thickness 0.6m thickness

Filling speed 10cm/day 10cm/day

Consolidation period 150～270 daysWaiting time: period 1: 90 days, period 2: 120 days

Comnstruction ability(Depth)

20m 25m

Cost 1 2 12

RemarksInappropriate when there is

a hard layer in the upper partPlaced onto RC piling system

-

3-31

(2) Bridge Planning

1) Middle and Small Sized Bridges

A Superstructure

Bridges crossing middle and small sized rivers and waterways do not need long span. They are

composed of multi span superstructures with span length 25m~40m and fit for concrete structures in the

view point of economy and past example. Reinforced concrete structures , pre-stressed slab bridge ,

I-shaped or super T shaped pre-stressing structures are applicable to them. Those girder’s applicable

span length are as follows:

・Span length L= 12 ~24m ： Pre-Cast Pre-Stressed Concrete Slab Bridge

・Span length L=24m~33m ： Pre-Stressed I shaped Concrete Bridge

・Span length L=40m ： Pre-Stressed Super T shaped Concrete Bridge

Large sized bridge with span 40m and 40m~100m crossing river is applicable to pre-stressed concrete

Super T shaped simple girder and pre-stressed concrete box girder respectively.

Viaduct crossing the RR4 is applied to the structure shown below:

・Span Length L=30~33m ：Pre-stressed concrete I shaped simple girder

・Span Length L=40m ：Pre-stressed concrete Super T shaped simple girder

・Span Length L=24~35m ：Pre-stressed concrete box girder

Viaduct in main line is applied to the structure shown below:

・Span Length L=33m : Pre-cast pre-stressed concrete I shaped simple

・Span Length L=40~50m : Pre-stressed concrete box girder

B Substructure

Abutment is U-shaped reinforced concrete structure with straight wall in front in order not to be

obstructive against river flow.

Bridge pier in the river should be circular shaped in order to mitigate water pressure.

Pier for the viaduct should be round wall in plan or wall with rounded head. Bridge foundation is

supposed to be cast in-situ concrete piles with diameter 1.0m~1.5m, because ground condition around

bridge site is very uniform and supporting layer has been confirmed to be 40m under ground level by

boring core data. And execution method of foundation for Hong Ha bridge is supposed to be cast in-situ

concrete pile with diameter 2.0m.

3-32

2) Bridge plan for Hong Ha bridge

Study report on master plan of RR4 made by MOT has been submitted to prime minister on 30th

Nov.2010, and it is the stage of waiting for prime minister’s approval. There are 4 bridge type options for

main bridge of Hong Ha in the study report, prime minister has not yet decided which is the best option

among 4 bridge type. So we have calculated construction cost for 3 bridge types including a pre-stressed

concrete bridge with box girder option which has been recommended by TEDI, cable-stayed bridge with

steel edge-girder option and extradosed bridge option in this report. Cable-stayed and extradosed bridge

option has been proposed by study team. A side view of pre-stressed concrete box girder option and aerial

view of Hong Ha Bridge site is shown in the figure 3-5.

Figure 3-5 Hong Ha Bridge’s location and alignment in the aerial map

80000 100

00

80000 100

00

5×2.5m 5×2.5m

A0 P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P13 P14 P15 P16 P18P17 P19 P20 P21 P22 P23 P24 P25 P26 P27 P28 P29 P30 P31 P32 P33 P34 P35 P36 P37 P38 P39 P40 P41 P42 P43 P44 P45 P46 P47 P48 P49 P50 P51 P52 P53 P54 P55 P56 P57 P58 P59 P60 P61 P62 P63 P64 P65

起点橋台起点側堤防航路設定範囲終点側堤防終点橋台

←北

南→

堤外地

Phuc Yen side Abutment Main Bridge Part

(Ship Navigation) Phung side Abutment

South

North Inside bank

3-33

1) Review of bridge plan given in Pre-FS The biggest technical problem in the construction of the western portion of Ring Road 4 is to determine

what type of bridge to build over the Hong River, where the distance between embankments is approximately 5 km. The most important point when planning a bridge over a river is to formulate a plan that is appropriate in terms of water control and water transport as well as road transport, by taking into consideration historical changes in the waterway width, water level, and river traffic.

JICA has conducted the “Study on the Red River Inland Waterway Transport System” (March 2003)

covering a 40-km section of the Hong River in Hanoi, and an inland water transport improvement project has been proposed for the city. When preparing a plan for the construction of the Hong Ha Bridge, it is necessary to ensure that the plan is in alignment with this project.

Additional points to be taken into consideration include the fact that the Hong Ha Bridge is anticipated

to serve as a new landmark of Greater Hanoi, which was created with the merger of neighboring municipalities, and the fact that Hong River excursion cruises are anticipated to become a focus of Hanoi’s tourist industry in the future.

Note; A basic plan of Hong Ha Bridge made by TEDI shows a railway plan arranged parallel with the

bridge, but it does not mean to construct a road and railway bridge for double-use. At present road bridge will be constructed at first and railway bridge will be constructed nearby the road bridge at next stage. Above stated plan has been confirmed in the study report, issued Dec 2009 by the MLIT, Japan.

2) Issues on Hong Ha bridge construction

Constructing new Hong Ha Bridge as a most important infrastructure in the RR4 crossing Hong River, it

is important to consider durability, construction cost and aesthetic aspect of the bridge in the planning and

design stage based on the assumption that the bridge is used for over 100 years.

As a result of bridge site investigation, we found that one more important issue than above stated.

As found in the photos shown below, many vessels are navigating in the river. So it is important to

prevent ship collision to bridge piers in the river. The lesser number of bridge piers is the more favorable

on the view point of preventing ship collision and potential flood control.

Photo 3-1 Ship navigation around bridge site (1) Photo 3-2 Ship navigation around bridge site (2)

3-34

Besides constructing bridge foundation in the river, of which depth varies from 5-m in dry season to 13-m

in flood season, it needs to consider scale of false cofferdam and temporary piers to access construction site.

It is favorable to employ rational construction method considering above stated points.

The Hong Ha bridge, whose completion is slated for around 2015, is anticipated to serve as a western

landmark as a new greater Hanoi not only for road users but also Hong river tourist excursions by ship

which would be expected to develop in the near future.

And in the report “ Survey report 2009 Hong ha Bridge in the Hanoi Ring Road No.4 Construction

Project in the Socialist Republic of Vietnam, the property of the Hong River has been studied and the

results shows that the range of the main bridge proposed by TEDI would be reasonable.

3) Four bridge options for main bridge by TEDI

In the existing report , TEDI has prepared four bridge plan options based on the basic specifications in

the study report. The most basic specifications is as follows; the ship navigation clearance is of 80-m

width and 10-m height, so the bridge span should be more than 130-m The overall length is given as 5

km, the same as the distance between the river’s embankments. Of this length, approximately 1,000 m

constitute the main bridge toward right coast of the river. Table 3.6 compares the four plan options for the

main bridge with maximum span from 135m to 500m, giving the bridge type, span composition,

maximum structural height, and structural material.

Table 3-13 Proposed Main Bridge Options by TEDI

Option Bridge Type Span & Bridge Length Height of Structure Material of the

Structure

Option 1 Cable-Stayed

Bridge with

Steel Girder

160+370＊2+160

=1,060m

+119m

(at the top of the

pylon)

Pylon: RC,

Girder: Steel

Edge Girder

Option 2

Cable-Stayed

Bridge with

Mixed Type

Girder

199+500+199

=898m

+166.5m

(at the top of the

pylon)

Pylon: RC

Girder:

Steel & PC

Option 3 PC Box Girder

Bridge

90+135＊5+90

=855m

+28.5m

(at the top of the box

girder)

Girder:

PC Box Girder

Option 4 Steel Arch

Bridge

45+135+200＊4+135 +40

= 1,160m

+66.2m

(at the top of the arch

crown)

Member of the

Arch: Steel

3-35

Connected to the main bridge at both ends are PC box girder bridge segments of 135-m span length, positioned as semi-main bridges. The semi-main bridges are in turn connected with super-T girder bridge segments with 40-m spans. All four alternatives specify an overall length of approximately 5 km for the entire bridge system and consist of the same bridge plan for all segments other than the main bridge.

4) Estimations four bridge options by the study team Option 1 and 2 – as for cable stay bridge with span 370m and 500m respectively, ship collision possibility

is less than other alternative and more empty space is provided in river. But concerning the cable-stayed bridge option 2 with span length 500-m, the tower height must be no higher than 150 m in consideration of the safety of aircraft flying into and out of Noi Bai international airport. However, cable stay technology is quite new in Vietnam but local designer and contractor have drawn experiences from the completed and on-going projects namely: My Thuan Bridge, Kien Bridge, Bai Chay Bridge, Can Tho bridge, etc.

On the other hand, construction cost is highest and there is on-going cable stayed Nhat Tan Bridge

upstream. Option 3- PC box girder is good for navigational clearance. The 135m span is familiar to Vietnam. Current local contractor have accumulated a handful experience for balanced cantilever construction method. And box girder solution is the most competitive in term of price.

On the other hand, number of piers are so many that river flow might be obstructed at the time of flood.

And this box girder option is aesthetically not competitive with no monumentality as the longest bridge in the RR4. Option 4 – concrete filled arch bridge is of high architectural aesthetic. However, this technology is quite new in Vietnam and cost is much higher than Option 3. On the other hand, construction method, particularly installation of arch structure in water is more complicated and costly than other options.

We, study team, have reconsidered design of above stated 4 options and proposed 3options including PC

box girder bridge, cable-stayed bridge and extradosed bridge in Table 3-14. We would like to introduce

extradosed bridge in detail later.

Table 3-14 Reconsidered main bridge plan with 3options by Study team

Bridge

Plan

Bridge Type Span Length Height of

Structure

Structure

CASE1 PC Box Girder

85+5@127+85

=805m

+28.5m

(Upper floor of

Box Girder)

Pre-Stressed Concrete with Box Girder

CASE2 Cable-Stayed Bridge

160+2@370+160

=1,060m

+119m

(Top of the

Tower)

Tower：Reinforced Concrete

Girder：Steel Edge-Girder

CASE3 Extradosed Bridge

160+2@370+160

=805m

+52m

(Top of the

Tower)

Tower：Reinforced Concrete

Girder：PC Box Girder with Corrugated

Steel Web Plate

3-36

Figure 3-6 Options for Hong Ha Bridge

1 3 Op

4)-1 Option-1 (PC Box Girder )

This option has been proposed because of highest cost competitiveness. Though this option has been

satisfied with structure clearance for river navigation, so many bridge piers constructed in the main river

flow are subjected for ship collision risk and might be obstructive against river flow at the time of flood.

Moreover this option lacks monumentality as a longest bridge in the RR4.

4 968 000

805 000 805 000 805 000(

P31 P32 P33 P34 P35 P36 P37 P39 P40 P41 P42 P43 P44 P45 P46 P47 P48 P49 P50 P52P38 P51

85 000 5@127 000 = 635 000 85 00085 000

5@127 000 = 635 00085 00085 000

5@127 000 = 635 00085 000

000



4 969 000

805 000 551 000(

P31 P32 P33 P34 P35 P36 P37

P39 P40 P41

P42 P43 P44 P45 P47P38 P46

85 0003@127 000 = 381 000

85 00085 0005@127 000 = 635 000

85 000000


160 000 370 000 370 000 160 000

1 060 000


4 968 000

805 000 560 000(

P31 P32 P33 P34 P35 P36 P37

P39 P40 P41 P42 P43

P44 P45 P46 P47 P49P38 P48

85 0003@130 000 = 390 000

85 00085 0005@127 000 = 635 000

85 000000


100 000 4@210 000 = 840 000 100 000

1 040 000


Option-1 PC Box Girder


Option-3 Extradosed Bridge

3-37

Figure 3-7 Cross Section of PC Box Girder

30 000

CL

15 000 15 000

500 2 000 3@3 750=11 250 7501 000

750 3@3 750=11 250 2 000 500

2.0% 2.0%

1 625 2 000 7 000 2 000 4 000 7 000 2 000 1 375

150

3 500

H

2 000

2 000

H3 500

150

1:1.0

1:1.01:1.0

1:1.0

7 000

11 000

7 000

11 000

7 200

7 200

30 000

15 000

3@3750=11 250 2 000 5007501 000

750

15 000

3@3750=11 250500 2 000

2.0%

CL

2.0%

1 000

1 000

3 500 8 000 3 500 3 500 8 000 3 500

1 000

1 000

1 500 5 000 1 500

3 300

3 300

2 000

1 500 5 000 1 5001 500 7 000 1 500

3 500

100



29 000

26 000

4)-2 Option-2 (Cable-Stayed Bridge with Steel Girder)

Option-2 is a cable-stayed bridge with span 370-m, ship collision possibility is less than other options

and more empty space is provided in river. Bridge piers constructed in the main river flow are least of all

options, possibility of ship collision to the bridge pier is very small. And cable-stayed bridge is

aesthetically very good and has a sufficient monumentality as the longest bridge in the RR4. On the other

hand it is not competitive economically comparing to option-1.

3-38

Figure 3-8 Cross Section for Cable-Stayed Bridge

5 000 5 000

9 439

5 000

17@2000=34000

51 500

90 500

10 000 16 000 10 000

4 808

H1

5 000

90 500

17@2000=34000

51 500

4 808

H1

3 000

8 200

5 000

17@2000=34000

56 308

95 308

H1

8 200

5 000

95 308

17@2000=34000

56 308

H1

3 200

5 000

11 000

29 000

5 500

3 500

500

40 000

1 200

56 355

10 178 10 178

40 000

40 000

18 712

260

2%

3×3 750=11 250

1 250

2 000

800

3 000

4 500

750

1 000

250

2 000750400

1 200

2%

80031 300

32 900

7501 000

3×37 50=11 250 2 000 750 400

1 200

750

33 700

3 000

31 300

3-39

We have planned to employ weathering steel in this cable-stayed bridge in order to reduce

maintenance cost as much as possible we can. Generally speaking, steel bridge with painted steel

materials needs much cost to repainting periodically to prevent corrosion.

Applying weathering steel in steel bridge, the issues above stated would be remarkably improved.

Weathering steel is a low-iron alloyed steel, which has been designed to formulate rust on the steel

surface to prevent developing rust by rust itself. Fig 3-9 shows a guideline for unpainted use of

weathering steel for steel bridge without measuring amounts of airborne chloride in Japan. The

distance from coast line to the bridge construction site varies in the region because of variation of

seasonal wind in the region.

Figure 3-9 Guideline for unpainted use of weathering steel

In the Japan Sea side, the effect of airborne chloride for corrosion are most remarkable, so the

distance from coast to the construction site has been referred to as 20km. And in the case of bridge

crossing the river, whether weathering steel with no paint is applicable or not depends on the tidal

river or not. If the river is a tidal river, damage of salt will not necessarily happen unlikely sea.

We are going to use weathering steel for the cable-stayed bridge in this project, we would like to

propose to conduct exposure test of weathering steel near the bridge site in deciding whether it is

applicable for Hong Ha Bridge or not. Amounts of corrosion of the weathering steel as shown in Fig.

3-10 depends on the amounts of airborne chloride, temperature, humidity and contents of steel

material

According to Fig.3-10, amounts of corrosion for weathering steel including each factor of effects in

the future is possible to predict by the exposure test during a year. Therefore an exposure test nearby

the construction site of Hong Ha Bridge would be conducted during a year, it is predictable whether it

would be applicable or not.

3-40

Figure 3-10 Concept of Relation between Time and Rust Developing

Fig. 3-9 Concept of amounts of weathering steel

When weathering steel would be used, it does not need painting of coat but needs to study rust

developing status carefully by observing surface of the plate periodically. In the study the status of rust

should be estimated in comparison with the photo samples shown Fig. 3-11.

Figure 3-11 Photo samples for estimating status of rust developed

Level 5 4 3

Photo

Sample

Status Very Good Very Good Good

Thickness of Rust Under about 200μm Under about 400μm Under about 400μm

Disposal Needless Needless Needless

Level 2 1

Photo

Samples

Status Needs to be careful Bad

Thickness of Rust Under about 800μm Over about 800μm

Disposal Needs to be observed Needs repairing (painting)

1 50 100暴露年数

板厚減

少量

(mm)

腐食量 = f ( Cl, T, H, etc., W and Time) Cl : 飛来塩分量 T : 温度 H : 湿度 W : 化学成分/Cu,Cr,Ni etc.

将来の腐食量が1年の暴露試験データから予測可能

Exposed Period

Reduced Thickness of steel plate

(mm)

Predictable of amounts of

reduced thickness

of steel plate in a year in a

year

Amounts of corrosion= f (Cl, T, H, etc.,W and

Time) Cl: amounts of airborne salt

T: Temperature

H: Humidity

W: Chemical Contents/ Cu, Cr, Ni, etc.

3-41

4)-3 Option-3 ( Extradosed Bridge)

In this report we would like to propose a new bridge type which is not popular in Vietnam. Extradosed

bridge is a type of PC bridge based on an external cable system where the main girder is supported by the

main tower and stays. It is similar in appearance to a PC cable-stayed bridge, but its behavior is closer to

that of a typical PC girder bridge than a suspended structure, and the rigidity of its main girder is greater

than in the case of a cable-stayed bridge. It has a lower tower, and the slant of the stays are nearly

horizontal. By reducing the angle of the stays, it is possible to reduce the bridge’s stress amplitude caused

by variable loads (mainly traffic loads). Hence, as the fatigue strength of the stays is greater than that of

cable-stayed bridges and a greater tensile strength can be established for the stays, it is possible to use a

smaller quantity of materials, leading to cost savings.

Safety rates relating to the tensile strengths of stays (high-strength steel cables or steel bars) are 2.5 for

cable-stayed bridges and 1.67 for extradosed bridges.

The Odawara Blue Way Bridge has been completed in 1994 in Kanagawa Pref. Japan as the first

extradosed bridge in the world.

And for PC main girder’s web of the extradosed bridge in this report, corrugated steel plate has been

employed in order to reduce the weight of PC box girder. It is possible to design smaller dimension of

substructure, and shorten the construction period of cantilever erection of PC girder owing to use

large-sized segment of the girder than as usual.

Figure 3-12 Cross Section for Extradosed Bridge S=1:200 S=1:200

S=1:100

2.000%

4 500

3×3 750=11 2502 000 750

2.000%

4 500

3×3 750=11 250 2 0007501 000

2 0001 000

500 500

16 500 16 500

33 000

S=1:100

2.000%

4 500

3×3 750=11 2502 000 750

2.000%

4 500

3×3 750=11 250 2 0007501 000

2 0001 000

500 500

16 500 16 500

33 000

中間支点部

支間中央部

6 50

03 500

2 500 2 810 22 380 2 810 2 500

1

2

1

2

6 912 5 500 2 000

2 500 1 310 6 190 6 500 6 500 6 190 1 310 2 500

3 810 25 380 3 810

2.000% 2.000%

1 700 4 000

2 000 6 000

1 500

12@750 =

9 000

12 5

00

23 0

00

1 500

12@750

= 9 000

12 500

23 000

1 500

12@750

= 9 000

12 500

23 000

6 500

23 000

6 500

23 000

8 939 8 939

2 833 26 000 2 833

986

3 000 18 000 3 000

18 712

40 000

5 500

3 50

050

0

11 00

029 0

00

40 000

41 877

3-42

Table 3-15 Execution records of Extradosed Bridge(in Japan)

Full Scenery of the bridge Dimension of the bridge

(Twinkle Kisogawa Bridge)

Mie Pref. (Kiso River)

PC & Steel Compound Extredosed Bridge

Bridge length: 1,145m (6 spans)

Longest span length: 275m (No.1 in Japan)

Completed in year of 2000

Note: The longest span length as a hybrid

Extradosed Bridge

(Tokunoyama Yatoku Bridge)

Gifu Pref.(Tokuyama Dam)

Extradosed Bridge

Bridge Length: 503m (3 span)

Longest Span Length: 220m

Completed in the year of 2006

Note: The longest span length as a PC

Extradosed Bridge in Japan

Figure 3-13 An Example of Cantilever Erection Method Figure 3-14 An Example of Large-Scale

Segment Block

3-43

Figure 3-15 Concept of PC Box girder Bridge with Corrugated Steel Web Plate

4)-4 Steel Pipe Sheet Pile Foundation Method

We would like to propose Steel Pipe Sheet Pile Foundation Method to construct foundation for

cable-stayed bridge and extradosed bridge. The reason why we have recommended the Steel Pipe Sheet

Pile Foundation Method is as stated below.

Table 3-16 Comparison of Cast in-situ concrete pile with Steel Pipe Sheet Pile Foundation

Comparison Items Cast In-Situ Concrete Pile Steel Pipe Sheet Pile

Foundation site in deep water Needs temporary cofferdam

Horizontal Dimension for

Foundation

Large

Small

Quality and Reliability Be affected by soil condition and

foundation depth

High quality and high reliability

Construction Period Long (100%) Not so long (80%)

Construction Cost 100% 95~100%

Influence for environment Much mad water and earth and sad

to be disposed

Not much mad water and

earth and sand to be disposed

Overall estimation △ ○

Concrete Upper Slab Corrugated Steel Plate Web

Corrugated Steel Plate Web Concrete Lower Slab

Inner PC Tendon

Outer PC Tendon

3-44

Figure 3-16 Concept for Steel Pipe Sheet Pile Foundation

5) Approach Bridge

Based on the execution records so far in Vietnam, super T shaped PC bridge with span length 40-m

is recommended to employ for approach bridge of the Hong Ha bridge. Merits of the bridge structure type

are as follows; ①affluent in torsion rigidity, ②high quality by casting in the factory, ③economical and

good aesthetics in orderly arranged girders shown straight line,④fit for quick construction ⑤easy

maintenance and ⑥many execution records of Vietnamese contractor.

And PC box girder bridge with span of 65m has been recommended for approach bridges crossing the

dike road after confirming the clearance between the wagen for execution and the dyke road.

In this report main span of approach bridges crossing over the dike roads has been changed from 63m to

65m in order to lessen the effect for the dykes when constructing foundation and piers of the bridges.

And span of PC Super T Girders has been standardized to 40m in order to minimize the manufacturing

cost of in the factory.

Table 3-17 An outline of approach bridge of the Hong Ha Bridge

Location

Approach

Land in the

dyke

Portion of

crossing

the dyke

Approach

Land out

of dyke

Approach

Land out of

dyke

Portion of

crossing

the dyke

Approach

Land in the

dyke

Type of

Super

Structure

Super T

[email protected]

=240m

PC Box

Girder

42.5+65.0

+42.4=150m

Super T

[email protected]

＊3＝600m

Super T

[email protected]

= 200m

PC Box

Girder

42.5+65.0

+42.5=150m

Super T

[email protected]

＊2＝400m

3-45

Figure 3-17 Cross Section for the Approach Bridge(Super T shaped PC bridge)

30 000

15 000

3@3 750=11 250 2 000 500750 1 000 750

15 000

3@3 750=11 250500 2 000

CL

2.0% 2.0%

2.0%

2.0%

1 050 6@2150=12900 1 050 1 050 6@2150=12900 1 05010

02 000

H180

0

5 000 5 000 5 000

7 500 7 500

3 500 5 000 3 500

1 30

0H

2 000

100

100 12 000 100 15 000 100



Figure 3-18 Cross Section for the Approach Bridge (Portion of the crossing dyke)

30 000

CL

15 000 15 000

500 2 000 3@3 750=11 250 7501 000

750 3@3 750=11 250 2 000 500

30 000

15 000

3@3 750=11 250 2 000 5007501 000

750

15 000

3@3 750=11 250500 2 000

CL

2.0% 2.0% 2.0% 2.0%

3 000

100

H

2.0%

3 000

100

H

3 800

3 800

1 000

500

9930

2 500

100

2 750 1 000 4 500 1 000 2 7501 000

500

9930

2 500

100

2 7501 0004 5001 0002 750

2 000

2 000

3 750 1 250 5 000 1 250 3 750 3 750 1 250 5 000 1 250 3 750

30 00012 000 3 000 12 000



3-46

(3) Construction Planning

(1) General road section

The construction plan and construction process will be prepared through detailed consideration at the

detailed design stage of this project, but this document states a number of points to consider, based on

construction management experience in Vietnam.

1) Confirmation of the land acquisition process

Rapid completion of land acquisition requires confirmation of the process with the government

agency responsible.

There have been examples among road construction projects in Vietnam of delays to construction

when land acquisition does not progress smoothly. Construction of the Nhat Tan Bridge Project that

carries Hanoi Ring Road 2 over the Red River has been severely delayed because as of November 2010,

around one and a half years after the start of construction, some of the land has not been acquired.

Land acquisition is a process with a major influence on the construction process, so it is necessary to

confirm the process with the government agency responsible when planning construction.

2) Confirmation of the obstacle removal process

The removal of obstacles such as high-voltage power lines is another process with a major influence on the construction process, so it is necessary to confirm the process with the government agency responsible.

3) Division of construction sections based on consideration of appropriate construction scale

Based on the above processes 1) and 2), divide construction sections based on consideration of

appropriate construction scale, in consultation with the government agency responsible.

4) Traffic diversion

Construction planning requires a diversion plan for use during construction works, to route and divert

construction roads and diversion routes, etc. Procedures must be followed in consultation with local

government authorities, police and other agencies, and approval must be obtained.

5) Countermeasures against soft ground conditions

An area of soft ground extends from the position of the intersection with the Hanoi - Lao Cai

expressway to the end point at National Route 32. Countermeasures against this soft ground must be

built before earthworks construction can begin, and a surcharge period will also be required. These tasks,

3-47

including arrangement of materials and construction machinery, must be performed in advance.

6) Determination of construction material sources and quality inspection of materials

The determination of sources for materials such as those for earthworks, road beds and concrete, and

confirmation of the quality of the selected materials, must be completed in the initial stage of construction,

so that such issues cannot impact the construction process.

(2) Bridge section

The construction plan and construction process will be prepared through detailed consideration at the detailed design stage of this project. The following is the construction plan that was envisaged for the calculation of construction costs in the bridge plan.

1) Procurement of materials and equipment

There is no problem with procurement of construction materials and equipment for the bridge, as stated individually below.

1)-1 Construction machinery for the bridge

Cranes for up to 60 tons as bridge construction machinery can be sourced inside Vietnam. Larger cranes and other machinery such as erection girders and extenders can be sourced from other countries, such as Singapore and Japan, and construction of some extenders in Vietnam should be considered. In any case, there is no procurement problem.

1)-2 Bridge equipment and materials

There is no problem with procurement of materials and equipment for the bridge, which are mainly reinforcing bars and cement, which can be sourced locally, as stated below. It is assumed that steel elements for the steel bridge will be sourced from Japan.

[1] Reinforcing bars

As shown in Table 3-18(a), the production of steel bar in Vietnam for reinforcing bars and other applications is rising every year, and there is an adequate supply capacity of approximately 2.5 million tons/year. There is a Japanese-affiliated company, Vina Kyoei Steel Ltd., which was established in 1994 as a joint venture between Kyoei Steel, Mitsui & Co., Itochu Corporation, and Vietnam Steel Corporation. Its total production capacity for deformed bars, regular round bars and wire for use as reinforcing materials is estimated at 300,000t/year (Source: The Japan Iron and Steel Federation Library, 2006).

3-48

Table 3-18 (a) Iron and Steel Production in Vietnam (tons)

2005 2006 2007* Billet 875,000 1,400,000 1,800,000

Final product (totals below)

4,244,000 4,743,000 5,345,000

Steel bars 2,073,000 2,289,000 2,508,000 Wire rods 938,000 936,000 1,026,000

Steel sections 253,000 243,000 266,000 Others materials 980,000 1,275,000 1,545,000

Note: Estimate (Source: VSA (Vietnam Steel Association),

SBB (Steel Business Briefing) INSIGHT, Issue 51,29 October 2007）

[2] Cement Limestone, which is the main raw material for cement, is abundantly mined in Vietnam, and the

production volume is growing every year, as seen in Table 3-18(b). Annual production is approximately 31 million tons, which is sufficient. There is also Nghi Son Cement Corp., a Japanese-affiliated company which was established as a joint venture between Taiheiyo Cement, Mitsubishi Materials and Vietnam Cement Industry Corporation. It began commercial production in 2000 and has an annual capacity of 2.15 million tons. It is currently expanding its factory and plans to expand to 4.15Mt/year by fall of 2009.

Table 3-18(b) Cement Production in Vietnam (tons)

2001 2002 2003* 2004 2005 2006 Cement 15,373.7 19,481.7 23,282.4 25,329.4 27,868.5 30,976.1

(Source: JETRO Hanoi Center, November 2007 Japan-Vietnam Economic Forum, hosted by JETRO, Keidanren and the Vietnam Chamber of Commerce and Industry,

November 26th, 2007)

2) Construction procedure

The construction procedures for the Red River Bridge, which will be a long-span bridge, are stated

below for the steel pipe pile foundations and the superstructure.

2)-1 Steel pipe sheet pile foundations

This construction method is a technology that was developed in Japan, where construction on rivers or

the sea is common, and it has progressed considerably. As Fig. 3-19 shows, this foundation method,

which combines with temporary water exclusion underwater, has a short construction period and superior

safety, reliability and economy. In Vietnam, the foundations for the Thanh Tri Bridge were piled on site, but steel pipe piles were used

for temporary closure during construction, as shown in Fig. 3-20. The Nhan Tan Bridge is planned to be the first to use the steel pipe pile foundations method.

3-49

Construction by this method requires careful consideration of the following points, which also apply to general foundation construction.

[1] Reference to design documents

The construction of foundations requires a thorough understanding of the content of the design

documents, which must be reflected in the construction work.

[2] Survey for construction work

This kind of survey is done from the practical construction perspective and is supplementary to the

survey done at the design stage. Its content and density will be determined on the basis of the survey results

found at the design stage. For example, if there is major variation in the supporting stratum, it is necessary

to produce a suitable plan for additional boring.

[3] Construction Plan

The construction plan is written with the purpose of building a structure with the required quality and

functionality, safely, economically, and on time. Specifically, adequate consideration must be given to

writing a reasonable and feasible process plan, and to aspects such as construction management methods,

safety management, and environmental measures.

[4] Construction management

Construction management manages whether or not the required structure is being built in the required

time frame and according to the construction plan. Management items include quality, process, and safety

management.

[5] Standards for steel pipe piles

The form dimensions of the steel pipe piles are an important factor that determines the ease of

construction and the quality of the foundation. For example, if there are joints that must be welded on site,

discrepancies in form between steel pipe piles above and below the joint must be small.

Therefore, the steel pipe piles used must be JIS A 5530 steel pipe piles and in accordance with the Japanese

Association for Steel Pipe Piles.

3-50

Figure 3-19 Steel pipe sheet pile foundations

Figure 3-20 Steel pipe sheet piles foundation for temporary enclosure on the Thanh Tri Bridge

2)-2 Superstructure erection method

i) PC box girders (cantilever method)

Erection machinery is mainly mobile construction vehicles, and once the formwork has been

assembled and the concrete poured and stressed, the vehicles can be moved forward to go on fabricating

the bridge by gradual extension and erection.

The construction procedure is as stated in Fig. 3-21.

3-51

Figure 3-21 PC Box Girder Erection Procedure Source; Study Team “PC bridge Erection Method” Japan Prestressed Concrete Engineering Association ii) Steel cable-stayed bridge

The erection of a steel cable-stayed bridge starts with tower construction using tower cranes, followed by [1] Stay cable erection and [2] cantilevered extension of main girder blocks, in a repeating cycle.

The same construction method is envisaged for the Nhat Tan Bridge further downstream. Figure 3-22 Example of Erection of a Steel Cable-stayed Bridge (Nhat Tan Bridge)

Planned Segment

① Staging for Pier Top ② No.1 Wagen set ③ No.2 Wagen set ④ Staging for End of the Girder ⑤ Completion of

the canti-lever

erection ⑥ Closure

segment by

suspended

staging

3-52

iii) Extradosed bridges

An extradosed bridge comprises three elements of a main girder, tower, and inclined cables. At the

erection stage, it requires a comprehensive consideration of topographic and environmental conditions,

constraints on construction and other conditions at the site, and of conditions peculiar to the structure

itself.

As a structure with a large-scale and complicated structure, the stresses and deformations arising in

the elements may vary considerably, depending on the construction procedure and method.

Construction must be performed with great care and a thorough grasp of the influences of these factors,

and in strict accordance with the design documents, and precision must be closely managed.

The construction procedure is the same as that stated for ii) the erection of a steel cable-stayed

bridge, starting with tower construction using tower cranes, followed by [1] stay cable erection and [2]

cantilevered extension of main girder blocks, in a repeating cycle.

Fig.3-23 An example of Extradosed Bridge Construction

3) Ensure safety during construction

Consideration of safety in on-site construction is another key parameter.

Particularly on construction sites in Southeast Asia, compared to equivalents in Japan, equipment,

materials and temporary facilities are not as extensive or well maintained, materials may be dilapidated,

and load resistance is doubtful due to the questionable reliability of those materials. Furthermore,

awareness and efforts related to day-to-day safety management and worker morale are less than

adequate.

It is very important to improve construction safety through structural design and construction

planning that are based on thorough consideration of these aspects of the construction environment.

Erection of Cocrete Tower Erection of the PC Box Girder by Movable Wagen

Tower Crane

Temporary Strut

Movable Staging

Elevator

3-53

Therefore, the kind of matters listed below need to be considered in the design and planning of this

long-span bridge.

3)-1 Simplification of equipment and materials and temporary facilities

The construction plan should use equipment, materials and temporary facilities that are easy to

arrange locally. Temporary facilities that are complicated to handle, assemble and disassemble can

easily cause equipment accidents caused by construction errors, including at the design and planning

stage.

The same can be said of materials used for the main structure of the bridge, and the greater the

number of materials and components, and the higher their complexity, the more likely construction

errors are to occur on site.

3)-2 Consider minimizing the numbers of people on site from day to day and shortening the

construction processes

Minimizing the numbers of workers on site each day and the length of the construction period can

also minimize the probability of accidents.

3)-3 Work simplification

Even if the latest technology is introduced from Japan, management can be focused narrowly on the

day-to-day safety points by simplifying and routinizing the work to suit the working level of the

workforce.

Give each worker a specific position and a specialization in one task per day (single-skill work), so

that the magnitude of accident that any one worker can cause is reduced. The productivity of

construction work will be enhanced as a result.

3)-4 Reduction of tasks involving extensive movement in high places

Most fatal accidents on construction sites involve falling from high places. For construction sites

that involve working at great heights, meticulous planning, installation and management of scaffolding

and elevator equipment is not very difficult to achieve, but the safety management of large numbers of

workers going about their own tasks is very difficult. Therefore, keeping tasks involving movement to a

minimum and avoiding wide-ranging work are effective methods for preventing stumbling and falling

accidents.

3-54

(4) Operation and Maintenance Management Plan

1) Operation A Service Level if Japanese Road Management Standards are Applied

In setting the maintenance management plan for Ring Road 4, which is the subject of this survey, it is

necessary to base it on road maintenance management standards that were prepared with consideration

for Vietnam’s climate, topography, traffic characteristics, and other attributes. However, no such

standards have been enacted in Vietnam from which specific service standards could be derived.

Therefore, the road management standards used by Central Nippon Expressway Company Limited

(Nexco Central), which is one of Japan’s expressway operators, are presented below to indicate service

levels at five-year intervals from 2015 to 2030, where they are applicable to the road section covered by

this survey. The traffic volume forecast which is the basis for determining service levels is stated below.

Table 3-19 Target Route Planned Traffic Volumes (converted to PCU)

Section name 2015 2020 2025 2030

NH3~NH2 15,931 25,093 34,121 45,131 NH2~NH32 22,458 33,076 45,624 60,896

(Source: Prepared by the survey team)

3-55

A-1 Year 2015

Table 3-20 Traffic Management/ Inspection/ Cleaning Frequencies

Category Frequency Organization Notes

Traffic m

anageme

nt Traffic patrols 7 times/day

One team of 2 people per day 2 shifts, 24-hour organization

Gathering of information on road, traffic and weather conditions, removal of obstacles from the road, first response to accidents

Daily inspection 4 days/ 2 weeks

One team of 2 people per day

Mainly road surface checking, by eye and sensation from a vehicle

Periodic inspection At least once/ year

One team of 2 people per time

Distant visual inspection on foot, from away from the main route

Inspection of road structures

Detailed inspection Once/ 5 years One team of 5 people per time

Detailed visual inspection and assessment of soundness by hammering tests

Main route 45 times/ yearOne team of 2 people per time, with one cleaning vehicle

Cleaning with a cleaning vehicle

Main route 179 times/ year

One team of 2 people per time Cleaning by manual labor

Interchanges Once/ year One team of 1 person per time

Manual cleaning of landscaped areasArea of 0.8ha envisaged

Cleaning

Drainage equipment Once/ year One team of 2 people per

time

Mechanical cleaning of water collection sump Cleaning of drainage equipment, such as drainage pipes Installation at 1 point per 50m envisaged


Table 3-21 Paved Surface Repair Standards

Category Assessment points

Judgment standard values

Organization Notes

Rutting 25mm Coefficient of sliding friction μ(80)0.25

Flatness σ3.5mm Step 20/30mm

Paved surface repair

Crack ratio 20%

After the road opens, perform cut and overlay surfacing of the top 4cm every 5 years for 20 years

Use a road cutter to cut the surface, behind lane restrictions, bring in mixed material from a mixing plant, and use a finisher on site for surface smoothing.


3-56

A-2 Year 2020



Traffic m

anagement Traffic patrols 9 times/day






Periodic inspection

At least once/ year



Inspection of road structures Detailed

inspection Once/ 5 years One team of 5 people per time


Main route 45 times/ year One team of 2 people per time, with one cleaning vehicle


Main route 179 times/ year One team of 2 people per time Cleaning by manual labor

Interchanges Once/ 2 days One team of 1 person per time


Cleaning


time






Organization Notes




Crack ratio 20%




3-57

A-3 Year 2025



Traffic m

anageme

nt Traffic patrols 10 times/ day






Periodic inspection

At least once/ year




inspection Once/ 5 years One team of 5 people per time


Main route 45 times/ year One team of 2 people per time, with one cleaning vehicle


Main route 179 times/ year One team of 2 people per time Cleaning by manual labor

Interchanges Once/ 2 days One team of 1 person per time


Cleaning


time






Organization Notes




Crack ratio 20%




3-58

A-4 Year 2030



Traffic m

anageme

nt Traffic patrols 11 times/ day






Periodic inspection

At least once/ year




inspection Once/ 5 years One team of 2 people per time, with one cleaning vehicle


Main route 45 times/ year One team of 2 people per time Cleaning with a cleaning vehicle

Main route 179 times/ year One team of 1 person per time Cleaning by manual labor

Interchanges Once/ 2 days One team of 2 people per time


Cleaning

Drainage equipment Once/ year







Organization Notes




Crack ratio 20%




3-59

2) Examination of the O&M implementation organization

A. O&M scope and implementing agency

O&M service such as that described below must be provided in order to supply safe road space that is

suitable for driving at high speed. An O&M subsidiary company will be established to implement the

O&M service, as described below, efficiently and rationally.

Table 3-28 O&M Scope

Category Content of O&M operations

Traffic management / traffic control

Collection of traffic information, traffic control, traffic patrols, accident response, detection and control of vehicles in breach of regulations, etc.

Toll collection Passage toll collection Periodic maintenance

Daily inspection, periodic inspection, cleaning, planting, traffic restriction, etc.

Repair Paved surface repair, bridge and structure repair Repair and improvement

Breakage and replacement of paved surface, functional improvement of bridges and structures, building up subsidence areas, etc.

Inspection and maintenance of devices

Inspection etc. of road facilities and buildings


B. Operation & Maintenance Office

The above O&M subsidiary will have one Operation & Maintenance Office in the area of its

jurisdiction. A traffic control center able to monitor traffic flow on the expressway will be established

at the office, and the office will manage traffic patrols, daily maintenance, repair and inspection, and

toll collection. The following allocation of personnel at the Operation & Maintenance Office would be

appropriate on the basis of the above service level, if Japanese standards are applicable.

3-60

Table 3-29 Operation & Maintenance Office Staff Allocation

Section name

Executive staff Number of staff

Manager 1 Deputy manager 1

Section manager 1 General affairs section

Official in charge 1

Section manager 1 Tolls section Official in charge 1 Section manager 1 Traffic controller 15

Road traffic section

Traffic patroller 30 Section manager 1

Maintenance workers 25 Road

maintenance section Road inspectors 10

Section manager 1 Facilities maintenance

section Facilities inspectors 6


3-61

C. Tollgate Tollgates will be built at the four interchanges within the jurisdiction area, An efficient 24-hour organization must be arranged for staff allocation at the tollgates. The following allocation of personnel at the Operation & Maintenance Office would be appropriate, if the Japanese standard was applied to the subject road section. All tollgates will use one-stop collection, in which toll collection and ticket issue are both performed by one person in one place.

Table 3-30 Personnel Allocation to Each Tollgate

IC installation positions

Entrance / Exit

No. of booths Necessary staff

Entrance 2NH3 intersection area Exit 4

36

Entrance 2Hanoi-Lao Cai Expressway intersection Exit 3

30

Entrance 3New NH23 Intersection area Exit 6

54

Entrance 5NH32 intersection area Exit 11

96

Total 36 216

24-hour system of two shifts per day.


D. Vehicle Arrangement It is important that the Operation & Maintenance Office should own vehicles for various purposes,

such as inspection and patrolling, and have them always on hand, in order to maintain the expressway in good condition at all times. The following allocation of vehicles at the Operation & Maintenance Office would be appropriate, if Japanese standards are applicable for the section concerned.

3-62

Table 3-31 Operation & Maintenance Office Vehicle Arrangement

Type

Number of

vehicles

Specs Applications

Liaison vehicle 2

vehicles

Sedan General liaison duties related to expressway management

Road patrol cars 2

vehicles

Van

Inspection of road structures and discovery of damaged locations Supervision of maintenance and improvement work

Traffic management vehicles

3 vehicl

es Van

Traffic restriction at accident sites Emergency work to remove obstructions and accident victims

Maintenance working vehicles

2 vehicl

es Wagon-type Maintenance work

Road surface cleaning vehicles

1 vehicl

e Brushing truck in the 10t class Road surface cleaning

Water sprinkler vehicle

1 vehicl

e

Truck in the 10t class with a water sprinkling tank

Tree spraying, road surface cleaning

Jet cleaner 1

vehicle

10t truck with high-pressure cleaner

Cleaning of drainage facilities and joints

Self-propelled sign vehicle

3 vehicl

es

Truck in the 2t class with mounted sign

Traffic restriction Information delivery indicating congestion tailback end position

Beam lifter 1

vehicle

7t truck for elevated working at 13m

Cleaning of lighting equipment


3-63

3) Maintenance Management Plan (road) Road maintenance management covers the road surface, artificial slopes, paving, drainage structures

and road structures (box culverts), etc. Maintenance management consists of inspections (daily, periodic and fault response inspections), cleaning, creation of road ledger and road management systems, repair judgments and selection of repair methods, and repair implementation.

A Inspections

Road inspection includes daily inspections, periodic inspections, and fault response inspections.

A-1 Daily inspections

Daily inspections are to identify abnormal conditions and damage on the road, and discover and remove obstacles on the road, in order to maintain road structures and ensure safe and smooth traffic flow. The frequency of daily inspections should be once in two days, as a general rule. The main inspection items are as stated in Table 3-31.

Table 3-32 Daily inspection items (roads)

Category Inspection content

Road surface condition Dirt and damage on the road surface Paving damage and wear Fallen stones or slipped earth on the road surface

Road shoulder condition Steps, holes and crumbling in the carriageways

Drainage facility condition Damage to drainage facilities and flow through them during rainfall

Artificial slope condition Crumbling or slippage of slopes, fallen stones, etc.

Artificial slope structure condition Cracks. movement and bulging in retaining walls and masonry walls

Condition of traffic safety facilities

Damage to guard rails, lighting facilities, road signs, etc. Obscuration of road signs by billboards etc. Unclear road markings Damage or other deformation in other associated facilities

Condition of median strip and planting facilities

Deformation of median strip and planting facilities

A-2 Cleaning

The purposes of cleaning include ensuring safety for road users and preventing disasters. Cleaning work covers road surfaces, drainage structures and other road-related facilities.

A-2-1. Road surface cleaning

Road surface cleaning is performed to remove accumulations of soil, small stones, fallen leaves and other materials near the road shoulder, and to facilitate the drainage of rainwater. It is performed twice a year, as required by roadside conditions.

A-2-2. Cleaning of drainage structures

The cleaning of drainage structures (drainage sumps and side gullies) is to remove accumulations of soil etc. that could impede the flow of water. Implement around twice a year, as a guideline

3-64

A-3 Periodic inspections Periodic inspections are detailed inspections of road paving, artificial slopes, retaining walls,

drainage facilities and box culverts, and other road structures.

Inspection involves a detailed visual inspection, and recording basic road data and inspection results

in the road ledger and inspection sheets. Where the condition of any part of the road has deformed, it

should be sketched or photographed to record the scale and progression of the change.

A -4 Inspection of abnormal conditions

In the event of an abnormal weather event or natural disaster, such as torrential rain or earthquake,

perform a suitable incident inspection to ascertain the damage to road facilities, whether the road is

passable, and other circumstances, and devise suitable response measures. If an error discovers a fault

requiring emergency response, suitable response measures must be implemented rapidly.

B Construction and management of the Road Management System (RMS)

The Road Management System (RMS) controls everything from road design through construction to

management, with an integrated system for all procedures. It is a system for making appropriate and

rational judgments on the procedures and methods for implementation of the most basic road-related

matters, which are design, construction, maintenance, inspection and improvement. It is intended to

assign priority rankings for actions such as maintenance and improvement, hold down expenses for

maintenance management as a whole, and implement various measures to maximize benefits. To that

end, it is necessary to apply a Life Cycle Cost (LCC) approach that considers and compares the entire

scope of initial construction costs and maintenance management costs.

Figure 3-24 Total Frame of RMS

Road InventoryDatabase

Inspection Database

Diagnosis Chart

StandardCountermeasure

Database

Registration intoRoad Inventory

Inspection

Registration ofInspection Results

Damage Evaluation

Soundness Evaluation

Deterioration Forecast

EngineeringDevelopment

forSoundness Evaluation &Deterioration Forecast

EngineeringDevelopment of

Inspection Method

Education for DamageEvaluation

EngineeringDevelopment forCountermeasure

Study of Time, Type &Cost of Countermeasure

Study of Priority

Preparation of RoadManagement &

Investment Plan

EngineeringDevelopment for Road

Management Plan

Road Database Road Management SystemEngineering Development

Personnel Training

3-65

Efficient implementation of the Road Management System requires inspection at the right time to

obtain road information, appropriate assessment of that information, and formulation of repair plans

suitable for the state of damage.

B-1. The main roles of inspection are to discover faults in the road and road structures and accurately

record the status of damage, and to obtain technical information for the planning of repairs and other

measures. To raise the accuracy of inspection results, it is important that the inspections should be

performed by a suitably-trained inspection engineer on the basis of an consistent inspection procedure,

and that the results be stored and accumulated in a database for effective use.

B-2. Damage assessments linked to the level of soundness of road structures must analyze inspection

results and make correct judgments of the cause and the state of deterioration. To that end, damage

history data should be accumulated and systematized to enable accurate judgment of the state of

deterioration.

B-3. Suitable repair plans must be formulated for the cause of the damage and the state of

deterioration, and to that end, a system must be built to accumulate and analyze repair history, store it in

a repair history database, and reflect it in repair plans.

3-66

4) Maintenance Management Plan (bridge)

Maintenance management for a bridge consists of inspections (daily, periodic and fault response

inspections), cleaning, creation of bridge ledger and bridge maintenance management systems, repair

judgments and selection of repair methods, and repair implementation.

A Inspections

A-1 Daily inspections

Daily inspections are to identify abnormal conditions and damage on the road, and discover and

remove obstacles on the road, in order to maintain road structures and ensure safe and smooth traffic flow.

For bridges in particular, daily inspections are to discover such faults and damage to the bridge that can be

observed from the road surface. For example, such inspections would cover car guardrails, bridge railings,

lighting and signage poles on the bridge, expansion joints, road surface condition, and towers and cables

(for a cable-stayed bridge). Faults in the deck slab can be detected from the condition of the road surface,

and faults in expansion joints and bearings can be detected from level steps and road noise. The frequency

of daily inspections should be once in two days, as a general rule, in the same way as daily inspections for

road maintenance management.

A-2 Cleaning

The purposes of cleaning include ensuring safety for road users and preventing disasters. Cleaning

consists of road surface cleaning and drainage structure cleaning.

A-2-1. Road surface cleaning

Road surface cleaning is performed to remove accumulations of soil, small stones, fallen leaves and

other materials near the road shoulder, and to facilitate the drainage of rainwater. It is performed twice a

year, as required by roadside conditions.

A-2-2. Cleaning of drainage structures

Cleaning of drainage structures (drainage sumps and pipes) is performed in order to prevent the

accumulation of soil etc. and the blockage of water flow. Implement around twice a year, as a guideline

A-3 Periodic inspections

Periodic inspections are intended to ascertain the state of the bridge and discover faults and damage at

an early stage, ensuring safe and smooth traffic movement, as well as gathering information for rational

maintenance management of the bridge. It is the most important type of inspection for maintenance

management.

To achieve these objectives, Periodic inspections are performed on the basis of an inspection procedure

which stipulates the inspection frequency and method, the elements to inspect, the items to inspect (types

of damage), damage judgment criteria, recording methods and other details.

3-67

The road manage takes responsibility and applies judgment to deciding the frequency of Periodic

inspections based on their content and purpose. For example, inspections that use inspection scaffolding

or bridge inspection vehicles etc to get as close as possible to the inspected elements and make a closeup

visual inspection should be performed every five years, as a general rule.

If a Periodic inspection discovers some kind of fault or damage in an element of the bridge, a repair is

made or a more detailed study performed, depending on the nature and severity of the problem.

A-4 Inspection of abnormal conditions

In the event of a major accident caused by an earthquake, or of a natural disaster or abnormal weather

event such as a typhoon or torrential rain, or an unexpected fault occurring in the bridge, this kind of

inspection is performed as necessary to confirm the safety of the bridge, ensure safe and secure traffic

flow, and prevent injury to the road or any third party.

If a fault is discovered that was not envisaged, the necessary investigation etc. is performed promptly

to identify the cause, and other bridges that might suffer from the same kind of problem are also inspected,

to ensure the safety of the bridges and prevent damage to third parties.

B Construction and Operation of the Bridge Management System (BMS)

The concept of bridge management is a relatively new one, but its basic approach is to assess public

investments in Japan on according to their cost-benefit (B/C etc.) and apply the scientific management

methods (QC, OR, IE, etc.) that were devised in the era of mass production.

In the apparatus industry era in which most of Japan’s bridges were built, initial construction cost was

the dominant consideration, and it appears that the costs that would become necessary through the

lifespan of the bridge (LCC) etc. were not always considered.

The approach of systematizing all procedures from the design of the bridge through to its construction

and management and controlling them in an integrated way (i.e. a Bridge Management System (BMS))

had an important role in changing the apparatus industrial bridge construction that went before into an

intellectual industry.

BMS is a system for making appropriate and rational judgments on the procedures and methods for

implementation of the most basic bridge-related matters, which are design, construction, maintenance,

repair, reinforcement, rebuilding and the like. It is intended to assign priority rankings for actions such as

maintenance, repair, reinforcement and rebuilding, hold down expenses for maintenance management as a

whole, and assess the implementation of various measures to maximize benefits.

3-68

Figure 3-25 The BMS Concept

Source: Survey Group “Road Bridge Management Manual”, August 2004, Japan Bridge Engineering Center

B-1 Deformation positions and deformation forecasting

To ensure the long-term durability of bridges, it is beneficial to forecast the future state of the Red

River Bridge 10, 20, 30, and 40 years in the future, with the emphasis on easy and reliable

implementation of maintenance management.

When forecasting, the anticipated risks for each position should be classified as “maintenance

management for positions where it is difficult to estimate the extent of damage” and “maintenance

management for positions where it is easy to estimate the extent of damage”, based on existing examples

of damage, the environmental conditions specific to the bridge, and its structural characteristics.

B-2 Main bridge structure

Deformation of the bridge structure should be forecast for each number of elapsed years and the points

subject to maintenance management should be defined.

Bridge ledger Construction data Inspection data Maintenance data Traffic surveys Accident investigations Cost data

Expenses

Bridge

Deterioratio

Financial constraint conditions (management information)

Potential countermeasures (Technical information)

Analysis by BMS

Needs

Future condition

Response options

Expenses

3-69

Table 3-33 Maintenance Management Points and Deformation Corresponding to Numbers of

Years (Bridge structure)

Years

elapsed

Target positions

10 years 20 years 30 years 40 years ~100 years

Steel deck plates Ponding Fatigue cracking

Secondary steel

girders

Deterioration of joint

sealant material

Deterioration of

anti-corrosion function

Water seepage into

girders, corrosion

Fatigue

cracking Steel

girders

Intersection area

Deterioration of joint

sealant material

Deterioration of

anti-corrosion function

Water seepage into

girders, corrosion

Fatigue

cracking

PC girder Cracking Salt damage, neutralization PC

girder Joints Corrosion and faults in anchoring points due to water leakage

Cables Deterioration of polyethylene pipes

girder side attachment Deterioration of sealant at pin joints Cables

Anchoring points on

the arch rib side Deterioration of cable covers

Bridge pier Cracking Salt damage, neutralization

Arch abutments Cracking Salt damage, neutralization

Bridge piers Cracking Salt damage, neutralization

3-70

B-3 Bridge accessories

Deformation of the appurtenant parts of the bridge should be forecast for each number of elapsed years

and the points subject to maintenance management should be defined.

Table 3-34 Maintenance Management Points and Deformation Corresponding to Numbers of

Years (Bridge appurtenant parts)

Years elapsed

Target positions 10 years 20 years 30 years 40 years

After 40

years

Paving Paving faults and irregular road surface

Bearings Functional impediments, subsidence, movement and tilting, blockage

with soil, bolt loosening

Expansion joints Expansion clearance fault, abnormal noise and vibration

Wheel guards Cracking, salt damage, neutralization

Bridge guard rails Loosening or corrosion of anchor bolts

Drainage

drainage sumps Reduced function due to blockage with soil

Drainage

equipment Steel drainage

channels

Reduced anti-corrosion function, corrosion, and reduced function due

to blockage with soil

B-4 Other appurtenant equipment

Deformation of the appurtenant equipment should be forecast for each number of elapsed years and the

points subject to maintenance management should be defined.

Table 3-35 Maintenance Management Points and Deformation Corresponding to Numbers of Years

(other appurtenant equipment)

Years elapsed

Target positions 10 years 20 years 30 years 40 years

After 40

years

Signage Corrosion of anchor bolts

Navigation channels lights Replacement of light bulbs and other consumables, deterioration of

electrical equipment

3-71

5）Yearly operation and maintenance cost of the RR4

There is so rare performance of the operation and maintenance (hereinafter referred to O & M) for

expressway in Vietnam so far. In order to analyze financial internal rate of return of this project, we have

to estimate yearly O & M cost of the the 37km section of the RR4. We have decided to estimate it in

comparison with Japanese and Vietnamese cost of O & M of expressway.

Table 3-36 Yearly Cost of O & M in Japanese Expressway Expressway

Company Yearly Cost (100 mil. Yen)

Length of Expressway (km)

Yearly Cost/Length of the Expressway(mil.Yen/km)

East NEXCO 1,723 3,575 48.2mil. Yen/km Central NEXCO 1,270 1,761 72.1mil. Ten/km West NEXCO 1,672 3,258 51.3mil. Yen/km Source: Web Site of the 3 NEXCO company

We have found out that an averaged yearly cost of O & M is 54.3 mil. Yen/km in Japanese expressway

according to Table 3-35. The cost of the 54.3 mil.Yen/km in Japanese expressway includes

countermeasure cost for preventing freezing of the road surface in winter season. But it does not need

such countermeasure cost in Hanoi, Vietnam. And Japanese level of O & M is considered to be so high

comparing to it’s in Vietnam. Besides in general O & M of the expressway needs much manpower, so it

needs to take into the difference of labor cost in Vietnam and Japan to estimate O & M cost in RR4,

Vietnam. Starting salary of the under graduated people in Vietnam is said to be 1/19 of that of the

Japanese.

Considering the above stated fact, yearly cost of O & M cost in RR4 has been estimated as follows.

54.3＊0.8＊1/10＝4.34 mil. Yen/km

The estimated cost shown above considered to be a lot and safer side on the financial analysis for the

examination of RR4’s PPP scheme.

The total length of the project is 37-km, so yearly cost of O & M of the project has been estimated to

156.2 mil. Yen/ and 2 mil.USD in USD basis.

And Japan Center for International Finance Center has investigated price in the world and reported it in

Hanoi and Tokyo so far. According to the report in May. 2010, with Tokyo’s price index as 100, the

prices, in Hanoi bus and taxi fare starts prices, gasoline, rice, pork , orange, tomato, Big Mac , and liquid

crystal color TV are approximately 7, 68, 40, 14, 25, 6, 60 and 50 respectively. It seems to be no clear

relations among prices Hanoi and Tokyo, Japan. So it was impossible to estimate O& M cost of

expressway in Hanoi in reference to the report.

Next page shows a tabulated comparison between the leading long-span bridges in Japan.

3-72

For reference: Examination and comparison of inspection locations and items on existing bridges (1) Main bridge

Inspection types, frequencies, locations etc. are compared on the basis of inspection procedures for existing long-span cable-stayed bridges, and the a proposal for the inspection locations and methods, based on the characteristics of the main bridge section (compound cable-stayed bridge) is presented in Table 3- 37(a) and (b).

Note that this study has not considered inspection vehicle equipment, management elevators, road surface lighting, management lighting, pedestrian elevators, navigation channel lighting, aircraft hazard warning lights, lightning conductor equipment, snow melting and removal equipment, and

other equipment details. Also, the initial inspection is to be performed within one year from completion, and measurement positions other than for paint are the same as for precise inspections.

Table 3-37 (a) Comparison of inspection positions and methods for each inspection procedure on long-span bridges, and inspection position and method proposals for this bridge (main bridge section) (1/2)

Inspection

Procedures

Honshu-Shikoku Bridge Inspection management procedure

Tsurumi Tsubasa Bridge Inspection procedure proposal

Meikou Nishi Bridge Maintenance management manual

proposal

Ikara Ohashi bridge Bridge maintenance

management and inspection manual

proposal

This bridge (main bridge section) Inspection position and inspection method

proposal

Daily inspection Periodic

inspection Daily inspection Periodic inspection Daily

inspection Periodic inspection Daily inspection

Periodic inspection


inspection Inspection

Type (Daily) (Patrol) (Basics) (Precision) (Daily) (summa

ry) (Detailed) (Daily) (Periodic [1]) (Periodic [2] (Daily) (Detaile

d) (Normal) (Distant visual)

(Close visual)

(Precision)

Inspection method

Inspection positions

Inspection

Frequency

4 days / week

Every 1~6

months

Every 1~2 years

1st, 3rd, 5th year

Every five years

thereafter

Daily Every half year

1st, 3rd, 5th year

Every five years

thereafter

Daily Annually

1st, 3rd, 5th year

Every few years

thereafter

Weekly Every 3 years

Once in 2 days

Every 5 years

Every 10 years

1st, 3rd, 5th and

10th years,

then every 10 years

Category Position Subcategory

Steel deck plates and floor system

Deck plates, longitudinal ribs, longitudinalgirders, lateral girders ○ ◎ ◎ ◎ ○ ◎

Concrete deck slabs ○ ◎ ○ ◎

Steel box girders Flanges, web plates, diaphragms ○ ◎ ◎ ◎ ○ ◎

Girder related

Concrete girders ○ ◎ ◎ ○ ◎

Tower columns ○ ◎ ◎ ◎ ○ ◎ ○ ◎

Horizontal members, lateral

beams ○ ◎ ◎ ◎ ○ ◎

Anchor bolts ◎ ○ ◎

Tower

Tower appurtenant parts ○ ◎ ◎ ◎ ○ ◎

Main cables

◎ ◎ ◎ ○ ◎ ○ ◎

See form measurem

ent column

Elastic restraint cables ◎ ◎ ◎ -

Cables

Cable vibration suppressor ○ ◎ ◎ ◎ ○ ◎ ◎ -

Cables girder side attachment ◎ ◎ ◎ ◎ ◎

Anchorage points Tower-side anchorage points ◎ ◎ ◎ ◎ ◎

Cables Cable sockets ◎ ◎ ◎ ◎

Cable related

Appurtenant parts Covers, bearing plates, etc. ◎ ◎ ◎ ◎

Bridge pier ○ ◎ ◎ ◎ ◎ ○ ◎

Foundation ◎ ◎ ◎ ◎ Substructur

e Substructure

appurtenant parts Inspection walkways, etc. ○ ◎ ◎ ○ ◎

Note 1) Symbols in the table indicate the content of inspection methods, as follows: ○: Visual inspection from a vehicle or from a distance, ◎: Close visual inspection (includes inspection by touch and hammering sound, non-destructive testing and other other simple measurements). ●: Measurement by instruments (measurements of form, stress, etc.)

3-73

Table 3-37 (b) Comparison of inspection positions and methods for each inspection procedure on long-span cable-stayed bridges, and inspection position and method proposals for this bridge (main bridge/ composite cable-stayed bridge) (2/2)

Procedures Honshu-Shikoku Bridge Inspection management procedure


Meikou Nishi Bridge Maintenance management manual

proposal



proposal

This bridge (main bridge section) Inspection position and inspection method

proposal


inspection Daily inspection Periodic inspection Daily

inspection Periodic inspection Daily inspection

Periodic inspection


inspection Inspection Type

(Daily) (Patrol) (Basics) (Precision) (Daily) (summary) (Detailed) (Daily) (Periodic

[1]) (Periodic [2]) (Daily) (Detailed) (Normal) (Distant

visual)(Close visual)

(Precision)

Inspection method


Inspection Frequency

4 days / week

Every 1~6

months

Every 1~2 years

1st, 3rd, 5th year

Every five years

thereafter

Daily Every half year

1st, 3rd, 5th year

Every five years

thereafter

Daily Annually

1st, 3rd, 5th year

Every few years

thereafter

Weekly Every 3 years

Once in 2 days

Every 5 years

Every 10 years

1st, 3rd, 5th and

10th years, then every 10 years

Category Position Subcategory *1 *1 *1

Bearings

○ ◎ ◎ ◎ ◎ ○ ◎

See form measurem

ent column

Drainage equipment ○ ○ ◎ ○ ◎ ○ ◎ ○ ◎ ○ ○ ◎

Inspection walkways ○ ◎ ◎ ◎ ○ ◎

Objects carried by the bridge

○ ◎ ◎ ◎ ○ ◎

Wind-resistant stabilizer panels

○ ◎ ◎ ◎ ○ ◎

Anti-thrust works ○ ◎ ◎ ◎ ○ ◎

Working vehicle rails ○ ◎ ◎ ○ ◎

Pedestrian walkway ○ ◎ ○ ◎

Bridge Appurtenan

t parts

Bridge anticollapse structures

○ ◎

Expansion joints

○ ○ ◎ ○ ◎ ○ ◎ ○ ◎ ○ ○ ◎

See form measurem

ent column

Bridge railing and guard railing

○ ○ ◎ ○ ○ ◎ ○ ◎ ○ ○ ◎

Wheel guards ○ ○ ◎ ○ ◎ ○ ◎ ○ ○ ○ ◎

Paving ○ ○ ◎ ○ *2 ○ ◎ ○ ○ ◎

Signage-related ○ ○ ◎ ○ *2 ◎ ○ ○ ◎

Bridge surface works

Illumination-related ○ ○ ○ ○ ○ ○ ◎

Paint Paint Paint deformation (level or deterioration, amount of adhering salt)

◎ ◎ - *2 -

Temperature Air temperature and element surfaces - - - -

Main girders Vertical section line - - - -

Tower Deflection from vertical - - - -

Cable related Cable tension - - - - -

Substructure Amounts of translation, subsidence and rotation

- - - -

Girders and substructure Amount of relative displacement - -

Expansion joints and bearings Amount of displacement - - -

Form measureme

nt (Deformation measuremen

t)

Oil damper Oil quality and spring length - -

Note 1) Symbols in the table indicate the content of inspection methods, as follows: ○: Visual inspection from a vehicle or from a distance, ◎: Close visual inspection (includes inspection by touch and hammering sound, non-destructive testing and other simple measurements). ●: Measurement by instruments (measurements of form, stress, etc.)

Note 2) *1: Separate management standards are set for daily inspections (General items are covered, because inspection is visual from a vehicle) Note 3) *2: Separate management standards are set for the relevant items. Note 4) The measurement methods for form measurements (deformation measurements) are indicated in reference documents.

3-74

(2) Approach section (PC elevated section)

Inspection types, frequencies and locations etc. were compared based on the previous inspection procedure for general bridges, and the proposal for inspection locations and methods for the approach section (PC elevated section) was adapted for the characteristics of this bridge, as stated in Table 3-2-7.

Table 3-38 Comparison of inspection positions and methods for each inspection procedure on general (concrete) bridges, and inspection position and method proposals for this bridge (approach section/ PC elevated bridge)

Inspection Procedures

Ministry of Land, Infrastructure, Transport and

Tourism Bridge inspection procedure

proposal

Honshu-Shikoku Bridge Expressway Company Limited.

Inspection management procedure

Tokyo Bridge inspection procedure

Tokushima prefecture Bridge periodic inspection

manual proposal

This bridge (approach section/ PC elevated section)

Inspection position and inspection method proposal

Daily inspection

Periodic inspection

Daily inspection Periodic inspection Daily

inspectionPeriodic

inspection Daily

inspection Periodic

inspection Daily

inspection Periodic inspection Inspection Type (Normal) (Periodic) (Daily) (Periodic A) (Periodic B) (Patrol) (Periodic) (Normal) (Periodic) (Normal) (Distant visual) (Close visual)

Inspection method


Inspection Frequency

Every 1 day~ 1 month

Every 5 years 4 days/ week Annually Every 1~5

years Every 3 months Every 5 years Annually Irregular Once in

2 days Every 5 years Every 10 years

Category Position Subcategory Note 2) Note 2)

Main girders ◎ ○ ○ ◎ ○ ◎ ◎ ○ ◎

Lateral girders ◎ ○ ○ ◎ ○ ◎ ◎ ○ ◎

Deck plates ◎ ○ ○ ◎ ○ ◎ ◎ ○ ◎

Superstructure

Outer cable ◎ （◎）（◎）（◎）

Bridge piers ◎ ○ ○ ◎ ○ ◎ ◎ ○ ◎

Bridge pier ◎ ○ ○ ◎ ○ ◎ ◎ ○ ◎ Substructure

Foundation ◎ ○ ○ ◎ ○ ◎ ◎ ○ ◎

Bearings Body, anchor bolts, mortar ◎ ○ ○ ◎ ◎ ◎ ○ ◎

Bridge anticollapse devices ◎ ○ ◎ ◎ ◎ ○ ◎

Drainage equipment ◎ ○ ○ ◎ ○ ◎ ◎ ○ ○ ◎

Inspection walkways ◎ ○ ○ ◎ ◎ ◎ ○ ◎

Appurtenant parts

Objects carried by the bridge ◎ ○ ○ ◎ ◎ ◎ ○ ◎

Expansion joints ◎ ○ ○ ◎ ○ ◎ ◎ ○ ○ ◎

Bridge railing and guard railing ◎ ○ ○ ◎ ○ ◎ ◎ ○ ○ ◎

Sound barriers ◎ ○ ○ ◎ ○ ◎ ◎ ○ ○ ◎

Wheel guards ◎ ○ ○ ◎ ○ ◎ ◎ ○ ○ ◎

Paving ◎ ○ ○ ◎ ○ ◎ ◎ ○ ○ ◎

Signage facilities ◎ ○ ○ ◎ ○ ◎ ◎ ○ ○ ◎

Bridge surface works

Illumination facilities ◎ ○ ○ ◎ ○ ◎ ◎ ○ ○ ◎

Note 1) Symbols in the table indicate the following inspection method types:

○: Visual inspection from a vehicle or from a distance, ◎: Close visual inspection (includes inspection by touch and hammering sound, non-destructive testing and other simple measurements)

Note 2) The procedures and manuals used by the Ministry of Land, Infrastructure, Transport and Tourism and Tokushima Prefecture cover periodic inspections, and they omit detailed descriptions of daily inspections, so the daily

inspection column is left blank.

3-75

(3) Inspection after a disaster

Inspection types, frequencies and locations etc. for use in the event of a disaster were compared based on the previous inspection procedure, and the proposal for inspection locations and methods was prepared for the characteristics of the main bridge, as stated in Table 3-2-7.

Table 3-39 Comparison of inspection types and locations in the previous inspection procedure for use in the event of a disaster, and proposal for inspection types and locations for this bridge in the event of a disaster

Inspection Procedures

Honshu-Shikoku Bridge Inspection management procedure


Meikou Nishi Bridge Maintenance management manual proposal



proposal

This bridge Proposal for inspection types and locations in the

event of a disaster

Inspection type Inspection to ascertain overall condition

Emergency restoration inspection

Primary disaster inspections

Secondary disaster inspections

Inspection of abnormal conditions [1]

Inspection of abnormal conditions [2]

Inspection of abnormal conditions

Inspection to ascertain overall condition

Emergency restoration inspection

Timing of implementation

When an earthquake occurs: Seismic intensity 4 or above When abnormal weather occurs: After implementation road passage restriction

After damage check by inspection to ascertain overall condition

When an earthquake occurs: Seismic intensity 4 or above When wind is very strong: 15m/s or more


When an earthquake occurs: Seismic intensity 5 or above



When an earthquake occurs: Seismic intensity 4 or above When abnormal weather occurs: After implementation road passage restriction(reference value: wind speed 20m/s or more)

After damage check by inspection to ascertain overall condition

Inspection type

Inspection location

Inspection method

Category Detailed category

As a general rule, inspection from a vehicle If damage is discovered, photograph or sketch it from the road and make a visual inspection from ground level.

Ground-level inspection (including simple measurements).

Visual inspection from a vehicle, visual inspection from a management walkway, closeup visual inspection from an inspection vehicle.

Make a more detailed instrument-based inspection if the primary inspection result indicates that one is necessary.

Ascertain overall condition and make an emergency restoration inspection.

Not as urgent as inspection [1], but make such inspections as are indicated as structurally necessary.

Inspect, visually from a vehicle, bridge deck or ground level, to find whether emergency restoration is required.

Make a visual inspection from a vehicle, to find whether emergency restoration is required.

Make a more detailed instrument-based inspection if the result of the inspection to ascertain overall condition indicates that one is necessary.

Road surface deformation

○ ○ ○ ○ Road surface

Obstructions on the road (lights, signs, etc.) ○ ○ ○ ○

Girder ○ ○ ○

Tower Base anchor bolts, etc.

○ ○ ○

Cables and anchorage points

○ ○ ○ ○

Cables Vibration dampers

○ ○ ○

Substructure

○ ○ ○

Bearing areas ○ ○ ○ ○

Bearings and

Expansion joints Expansion joints

○ ○ ○ ○

Elastic restraint cables

○ Vibration dampers Oil damper ○ ○

Bridge anticollapse system

Points recognized as damaged by the inspection to ascertain overall condition

Points recognized as damaged by the primary inspection

No inspection location stated

No inspection location stated

○

Points recognized as damaged by the inspection to ascertain overall condition

3-76

3.3 Outline of the Project

3.3.1 Basic Policy for Defining Project

(1) Road geometry conditions

1) Expressway sections (grade 100)

Vietnam’s design standards As stated in Table 3-40, according to TCVN 5729-97 Expressway Design

Requirement.

Table 3-40 Road Geometry Standards (expressway sections)

No. Item Unit Value

1 Road Grade Expressway

2 Design Speed km/h 100

3 No. of lanes lanes 6

4 Maximum superelevation % 7

5 Minimum radius for curve m 450

6 Maximum gradient % 5

2) Highway sections (Grade II for the delta)

Vietnam’s design standards As stated in Table 3-41, according to TCVN 4054-05 Highway Design

Requirement.

Table 3-41 Road geometric standards (highway sections)

No. Item Unit Value

1 Road Grade Grade II


3 No. of lanes lanes 4




3) Urban roads

Vietnam’s design standards As stated in Table 3-42, according to TCVN 104-2007 Design Standard

for Urban Road.

3-77

Table 3-42 Road Geometry Standards (urban road)

Item Unit Value Item

1 Road Grade





3-78

(2) Technical Criteria and Design Policy for Design of Bridge and Structures

1) Structure Design criteria

・Bridge Design Standard 22TCN272-05

・Load and Effect－Design Standard TVCN2737-1995

・Seismic – Resistant Structure Design TCXDVN 375-2006

・ Referring the bridge design standard AASHTO LRFD 2007

2) Principal Design Parameter

・HL93 Live Load（22TCN272-05）

・Ground Acceleration for Seismic Design : 0.11

・Structure Clearance for ordinary road(vertical) and expressway : 4.5m and 4.75m

・Structure clearance for navigation in waterways shall follow the grade of River Classification and

relevant regulations

The navigation route for Hong Ha bridge is classified into ClassⅠin the inland water ways

navigation rule, and structure clearance for Hong Ha bridge is prescribed to Width-80m＊

Height-10m above water level by the regulation stated in the Table 3-43 shown below.

Table 3-43 Classification for the Inner Waterways Navigation (Unit:m)

Dimension for Navigation Dimension for Structures

River Canal Bridge Power

Line

Span Class

Depth Width Depth Width

Radius

of the

Curve River Canal

Height

fromWaterLevel

Height

fromWater

Level

Ⅰ 3.0- 90- 4.0- 50- 700- 80 50 10 12

Ⅱ 2.0-3.0 70-90 3.0-4.0 40-50 500-700 60 40 9 11

Ⅲ 1.5-2.0 50-70 2.5-3.0 30-40 300-500 50 30 7 9

Ⅳ 1.2-1.5 30-50 2.0-2.5 20-30 200-300 40 25 6* 8

Ⅴ 1.0-1.2 20-30 1.2-2.0 10-20 150-200 25 20 3.5 8

Ⅵ -1.0 10-20 -1.2 -10 60-150 15 10 2.5 8

Source：VITRANSS より

* Can be 5m under the agreement of the Law Review Office.

・Design Flood Probability P=1%

3-79

3) Design Policy

Structure Clearance for bridges in the RR4 should be designed considering planned high-water

probability 1% and 2% in the case of express way and highway GradeⅡrespectively.

Bridges in the RR4 are classified into 4 categories.

A Bridges crossing rivers

Bridges crossing river in the RR4 has been planned to be satisfied with design policy shown below:

・To be eternal structure with slim shape and in accordance with road condition and adjacent structure

・Corresponding to request of the urbanize, irrigation and environment development in the future

・Short duration of construction, easy building and be highly mechanized method

・Negligible small effect for inhabitants

・Guarantee function of structures and facilities under operating around site sound

・Make good use of ability and material and machineries for the regional contractors, the other side

applying rational transport technology

・Considering the architectural aesthetics

・Indicate the rational economical target

Adding stated above condition, each bridge types should be satisfied with typical request shown below:

・Mitigation damage by flood with 1% probability－no effect for bridge , guarantee safety of the dyke

and no harm to paddy field and civil engineering structures

・Bridge crossing river should follow clearance for navigation- At locations planned before for bridge

construction with no requirement for navigation clearance, if possible, box culvert can be constructed

instead for lower cost while maintaining drainage at the moment and for future. Target of box culvert

selection is to lower investment and lower the alignment profile.

B Hong Ha bridge

Hong Ha bridge should be designed to be satisfied with requests shown below:


・Corresponding to request of the urbanize, irrigation and environment development in the future

・To be satisfied with structure clearance for navigation

・No harm to the environment

・Practicable and highly mechanized construction method and no harm to the ship navigation and citizen

life

3-80

・Applying rational and cutting-edge advanced transport technology

・Having slim shape and highly aesthetics, improve the beautiful scenery more

・Structure should be selected considering the cost of project and maintenance in the future

C Viaducts

Viaducts in the RR4 should be satisfied with design policy shown below:


・Corresponding to request of the urbanization, irrigation and environment development in the future

・Certificate the clearance of the roads under the viaduct and relevant roads sufficient

・Short duration of construction, easy building and be highly mechanized method

・Guarantee function of structures and facilities under operating around site sound

・Make good use of ability and material and machineries in the regional contractors, the other side

applying rational transport technology

・Considering the architectural aesthetics

・Viaducts has length less than 10km , it is so surprising length that scope and economical criteria for

designing should be rationally and in detail considered.

3-81

3.3.2 Concept Design and the Use of Appropriate Equipment

(1) Road Planning

1) Road grade

The road grade for Ring Road 4 will be expressway to the south of National Route 18, and highway to

the north of it.

A Km118+730～Km135+400(-1+451) - North side of National Route 18

- Road type: Highway

- Road grade: Grade II for the delta, design speed 100km

- No. of lanes: Four lanes

B Km-1+451~Km 18+940 - South side of National Route 18

- Road type: Expressway

- Road grade: Grade 100, design speed 100km

- No. of lanes: Six lanes

2) Transverse sectional composition

A Expressway sections

A-1 Urban Zone, Populated Area

The transverse sectional composition for expressway within urban zones is as stated below, with a

right of way of 120m.

- Carriageway 6×3.75m=22.5m

- Central separator: 4.0+1.0×2=6.0m

- Shoulder: 3.75m×2=7.5m

- Reserve space: 20.0×2=40.0m

- Urban road: 12.0m×2=24.0m

- Sidewalk: 10.0m×2=20.0m

Right of Way: 120m

Figure 3-26 Road transverse sectional composition (expressway, urban zone)

3-82

A-2 Non-urban zone

The transverse sectional composition for expressway within urban zones is as stated below, with a

right of way width of 136m + slope width.





Right of Way: 136m+ slope width

Figure 3-27 Road Transverse Sectional Composition (Expressway, Non-urban Zone)

B Highway sections

B-1 General sections

The transverse sectional composition of general highway sections is as stated below, with a right of

way width of 62.5m + slope width.





Right of Way: 62.5m+ slope width

Figure 3-28 Road Width Configuration (highway, general section)

3-83

B-2 Residential areas The transverse sectional composition for highway within residential areas is as stated below, with a

right of way of 28.5~32.5m.




- Sidewalk: 3.0~.5.0m×2=6.0~10.0m

Right of Way: 28.5m~32.5m

Figure 3-29 Transverse Sectional Composition (highway, residential zone)

3-84

(2) Bridge Planning

Road Standard for Ring Road 4(hereinafter referred to as RR4) is classified into 3 sections. According to

it’s function and traffic capacity, each section is designed to different scope and grade. Studied section for

Ring Road 4 is 37m in total length, the section is divided into 2 parts by road grade, northern section from

intersection NH18 is highway and southern section is expressway.

① Section 2: Km118+730~Km135+400(-1+451)･･･････Northern section from intersection NH18 and

RR4

・Road Type : Highway

・Road Grade: Grade Ⅱ, Design Speed 100km/hr

・Number of Lane: 4 lanes

② Section 1 : Km-1+451~Km18＋940･･････････Southern section from intersection NH18 and RR4

・Road Type : Expressway

・Road Grade: Grade 100, Design Speed 100km/hr

・Number of lane : 6 lanes

1) Cross Section for Bridge

Cross section of RR4 is expected to be a road with 6 lanes. Cross section of the bridge should be

principally in accordance with it’s road section. Cross section of viaducts, provincial road and National

Highway for Interchange structure should be in accordance with it’s road. Cross section of the viaducts

passing through industrial zone is as follows: To minimize the width of the land acquisition, a gap between

the up and down bridges should be removed.

Bridge cross section should be designed in accordance with it’s grade and applied criteria in each section

and to have sufficient number of traffic lane and required other facilities.

Cross section of the Hong Ha Bridge, the longest bridge with total length 5km in RR4, is designed

omitting inner road margin and emergency lane to minimize the total construction cost.

3-85

A Bridge cross section-Section 1

A-1 Main line bridge

Detailed cross sections of the main bridge in the main line are as follows:

6 Expressway Lanes ： 6×3.75m = 22.50m2 Emergency Stop Lanes ： 2×3.00m = 6.00m

2 Inner Road Margin ： 2×1.00m = 2.00m4 Guard Rails ： 4×0.50m = 2.00m1 Median Strip ： 3.00m = 3.00m

Total Width = 35.50m

Figure 3-30 Cross section of bridge in main line

A-2 Urban road bridge arranged parallel with RR4

Two Urban road bridges has been planned to be constructed parallel both side of RR4 bridge with width

35.5m.

Outer edge of the urban road bridge has been planned to be 20m away from edge of the RR4 bridge.

Planned cross section of the urban road bridge is satisfied with requested life facilities around urban city

zone. The detailed cross sections are as follows:

2 Highway Lanes ： 2×3.50m = 7.00m2 Mixed Traffic Lanes ： 2×2.00m = 4.00m2 Guard Rails ： 2×0.50m = 1.00m


Figure 3-31 Bridge cross section for urban road bridge 13000

3x 3500=70002500500 2500 500

t im ®¦ ê n g g o m

2%2%

2 l µ n xe c ¬ g ií i Lµ n hç n h î pLµ n hç n h î p

16250

3x 3750=112503000 1000 1500

16250

35500

500 500 3x 3750=11250 300010001500 500500

2%

t im t uyÕn

3000

3 l µ n xe c a o t è c

2%


3-86

A-3 Viaducts for main line

Except a distance between up and down bridges, cross section of the viaduct is similar to it’s of the

bridge for main line. The detailed cross section are as follows:

6 Expressway Lanes ： 6×3.75m = 22.50m2 Emergency Stop Lanes ： 2×3.00m = 6.00m2 Inner Margin Strip ： 2×1.00m = 2.00m4 Guard Rails ： 4×0.50m = 2.00m


Figure 3-32 Cross section of the viaduct for main line

A-4 Fly over crossing the main line

Cross section of flyover crossing the main line is in accordance with law , grade and traffic capacity of

the crossing road.

A-5 Viaduct in an Interchange

Cross section and width of viaduct for main line and ramp shall follow the detailed design.

B Bridge cross section for section 2

Detailed bridge cross section for section 3 is as follows :

4 Highway Lanes ： 4×3.75m = 15.00m2 Mixed Traffic Lanes ： 2×2.50m = 5.00m1 Median Strip ： 1×1.00m = 1.00m2 Inner Margin Strip ： 2×0.50m = 1.00m4 Guard Rails ： 2×0.50m = 1.00m



2%


1000

16250

3x 3750=112503000 1000

16250

32500

500 500 3x 3750=11250 30001000 500500

2%

t im t uyÕn

3-87

Figure 3-33 Bridge cross section for section 2

11000

2x 3500=75002500 500500

2%

2 l µ n xe c ¬ g ií i

11000

23000

2x 3750=7500 2500500 500

2%

t im t uyÕn

2 l µ n xe c ¬ g ií i

1000

C Cross section for Hong Ha Bridge

Hong Ha bridge with total length 5km is the longest bridge in the RR4 . Construction cost for Hong Ha

bridge will effect seriously project cost for RR4 (North west section, total length 36km). So we have

studied the cross section in detail to provide same service level with Hong Ha bridge as road section.

However in order to cost down of the Hong Ha bridge’s we have omitted some elements in the original

section of the expressway. Namely minimization of the separate distance between up and down bridge,

emergency traffic lane(from 3.0m to 2.0m), inner road margin (from 1.0m to o.75m) and decrease of the

deign speed to 80km/hr on the bridge.

As a result of omission some elements, cross section of Hong Ha bridge is as follows:

Figure 3-34 Cross section for the Hong Ha bridge

15000

30000

3x 3750=11250 2000750 500

2%

t im t uyÕn


15000

3x 3750=112502000500

2%


7501000

6 Expressway Lanes ： 6×3.75m = 22.50m2 Emergency Stop Lane ： 2×2.00m = 4.00m1 Median Strip ： 1×1.00m = 1.00m2 Inner Road Margin ： 2×0.75m = 1.50m2 Guard Rails ： 2×0.50m = 1.00m


3-88

3.3.3 Project Cost (Construction cost of the Hong Ha Bridge and Approach Bridge)

(1) Option-1: PC Box Girder Bridge

Option-1：PC Box Girder Bridge Main Bridge USD329,277,251 3,409 USD/m2 96,600Approach Bridge USD 73,852,098 1,415 USD/m2 52,200All Bridge USD 403,129,349 2,709 USD/m2 148,800

GR1：　PC Box Girder(in the river) （28 Spans）Item 1 Item 2 Item 3 Unit Quantity Unit Price(USD) Cost ( USD) Note

141,590,923Br. Girder Concrete m3 143,193 948.2 135,775,603Bridge Surface m2 96,600 60.2 5,815,320

36,670,347Concrete GR1 m3 81,165 451.8 36,670,347

30,460,560Cast-in-situ Pile GR1　φ2000 m 27,040 1,126.5 30,460,560

44,568,363Temporary Jetty 1 shallow m2 12,710 614.5 7,810,295Temporary Jetty 2 deep m2 44,719 819.3 36,638,277Temporary Road m2 7,630 15.7 119,791

75,987,058329,277,251253,290,19375,987,058

Total Cost/ Br. Surface Area : USD / m2 USD

GR2：　PC Box Girder(crossing dikes) （6 Spans）Item 1 Item 2 Item 3 Unit Quantity Unit Price(USD) Cost (mil. USD) Note

16,803,70411,440,714

Br. Gider Concrete m3 6,522 1,671.1 10,898,914Br. Surface m2 9,000 60.2 541,800

1,626,133.0Concrete GR2 m3 6,079 267.5 1,626,133.0

3,689,760Cast-in-situ Pile GR2　φ1500 m 4,800 768.7 3,689,760

47,100Temporry Jetty 1 shallow m2 0 0 0Temporary Jetty2 deep m2 0 0 0Temporary Road m2 3,000 15.7 47,100

5,041,11121,844,81516,803,7045,041,111

Total Cost/ Br. Surface Area : USD / m2 USD

Overhead Charge

Direct Cost

　Temporary Works

Overhead Charge Rate of Over head Charge : 30%

Cost

　　Contruction CostDirect Cost

2,427/m2

Direct Cost

　Temporary Works

Overhead Charge Rate of Over head Charge : 30%

Cost

　　Totak CostDirect Cost

　　Direct Cost

　Substructure

　Foundation

　Super Structure

　Sub Structure

　Foundation

Overhead Charge

3,409/m2

　　Direct Cost　Super Structure

3-89

GR3：　Super T type PC Br. （36 Spans）Itme 1 Item 2 Item 3 Unit Quantity Unit Price(USD) Cost (/USD) Note

40,005,60220,264,645

Br. Gider Condrete m3 22,522 784.3 17,664,005Br. Surface m2 43,200 60.2 2,600,640

5,630,291Concrete GR3 m3 20,407 275.9 5,630,291


1,442,490Tepporary Jetty 1 shallow m2 800 614.5 491,600Temporary Jetty 2 deep m2 900 819.3 737,370Temporar Road m2 13,600 15.7 213,520

12,001,68152,007,28340,005,60212,001,681

Total Cost/ Br. Surface Area : USD / m2 USD Exchange Rate; 1USD=83yen , as of Dec. 2010

Overhead Charge Rate of Overhead Charge : 30%

Cost

　　Total CostDirect CostOverhead Charge

1204/m2

Foundation

Direct Cost

　Temporary Works

　　Direct CostSuper Structure

　下　部　工

3-90

(2) Option-2 : Cable-Stayed Bridge

Option- 2: Cable-Stayed Bridge Main Bridge USD 222,064,214 6,983 USD/m2 31,800Approach Bridge USD 272,607,092 2,329 USD/m2 117,030All Bridge USD 494,671,306 3,323 USD/m2 148,830

GR1：　PC Box Girder (in the river) （19 Spans）Item 1 Item 2 Item 3 Unit Quantity Unit Price(USD) Cost (USD) Note

152,888,45495,022,980

Bridge Girder Concrete m3 96,100 948.2 91,122,020Bridge Surface m2 64,830 60.2 3,900,960

20,994,345Concrete GR1 m3 51,106 410.8 20,994,345

20,006,640Cast-in-situ Pile GR1　φ2000 m 17,760 1,126.5 20,006,640


45,866,536198,754,990152,888,45445,866,536

Total Cost / Bridge Surface Area : USD/m2 USD 3,066/m2

GR2：　PC Box Girder (crossing dike ) （6 Spans）Item 1 Item 2 Item 3 Unit Quantity Unit Price(USD) Cost (USD) Note

16,803,70711,440,714

Bridge Girder Concrete m3 6,522 1,671.1 10,898,914Bridge Surface m2 9,000 60.2 541,800

1,626,133Concrete GR2 m3 6,079 267.5 1,626,133


47,100Temporary Jetty 1 shallow m2 0 0 0Temporary Jetty 2 deep m2 0 0 0Temporary Road m2 3,000 15.7 47,100

5,041,11221,844,81916,803,7075,041,112

Total Cost/ Bridge Surface Area :USD/m2

Direct Cost

Temporary Work


Cost

Total CostDirect CostOverhead Charge

USD 2,427/m2

　Super Structure

Sub Structure

Foundation

Direct Cost

　Temporary Works

Direct Cost


Cost

　　Total CostDirect CostOverhead Charge

Direct CostSuper Structure

Sub Structure

Foundation

3-91

GR3：　Super T typed PC Bridge （36 Spans）Item 1 Item 2 Item 3 Unit Quantity Unit Price(USD) Cost (USD) Note

40,005,60220,264,645

Bridge Gieder Concrete m3 22,522 784.3 17,664,005Bridge Surface m2 43,200 60.2 2,600,640

5,630,291Concrete GR3 m3 20,407 275.9 5,630,291


1,442,490Temporary Jetty 1 shallow m2 800 614.5 491,600Temporary Jetty 2 deep m2 900 819.3 737,370Temporary Road m2 13,600 15.7 213,520

12,001,68152,007,28340,005,60212,001,681

Total Cost/ Bridge Surface Area USD 1,205 /m2

GR4：Cable-Stayed Bridge(Steel) （1 Bridge ：　4 Spans）Item 1 Item 2 Item 3 Unit Quantity Unit Price (USD) Cost (USD) Note

170,818,62699,880,069

Bridge Girder Steel Girder ton 10,090 4,826.5 48,699,385Floor Slab Concrete m2 35,722 494.0 17,646,668Pylon Concrete m3 13,929 1,478.3 20,591,241Diagonal Member Cable Strand ton 1,112 9,027.7 10,038,802 Number of Cable:11, Double Plane CableAccesaries LS 1 817,345.8 817,346 shoe and expansionBridge Surface Works m2 31,800 56.6 1,799,880Maintenance Facilities LS 1 286,746.9 286,747 400m2

5,836,180Concrete End Pier m3 5,838 331.3 1,934,129Concrete Intermediate Piers m3 11,778 331.3 3,902,051

52,828,311Steel Pipe Sheet Pile m 16,080 2,196.4 35,318,112Cast-in-situ Pile φ2000 m 1,760 1,126.5 1,982,640Bottom Slab Work m3 9,456 638.6 6,038,602Top Slab Works m3 14,859 638.6 9,488,957

12,274,066仮桟橋浅い m2 0 0.0 0仮桟橋深い m2 14,100 819.3 11,552,130仮設道路 m2 0 0.0 0ﾀﾜｰｸﾚｰﾝ・ｴﾚﾍﾞｰﾀｰ L.S. 1 721,936.1 721,936

51,245,588222,064,214170,818,62651,245,588

Total Cost/ Brideg Surface Area USD 6,983/m2Exchange Rate; 1USD=83yen , as of Dec. 2010

Overhead Charge Rate of Overhead Charge : 30%Cost

　　Total Cost Direct CostOverhead Charge

Temporary Works


Cost

　　Total Cost Direct CostOverhead Charge

Direct Cost　Superstructure （including manufacturing and erection）

Substructure

Foundation

Direct Cost

　Direct CostSuperstructure

　Substructure

　Foundation

Direct Cost

Temporary Works

3-92

(3) Option-3 Extradosed Bridge

Option-3: Extradosed Bridge Main Bridge USD 220,868,818 6,436 USD/m2 34,320Approach Bridge USD 273,767,904 2,309 USD/m2 118,590All Bridge USD 494,636,722 3,235 USD/m2 152,910

GR1：　PCBox Girder(in the river) （19 Spans）Item 1 Item 2 Item 3 Unit Quantity Unit Price (USD) Cost (USD) Note

153,400,69795,479,918


Consrete GR1 m3 51,106 410.8 20,994,345

Cast-in situ Pile GR1　φ2000 m 17,760 1,126.5 20,006,640


46,020,209199,420,906153,400,69746,020,209

Total Cost/ Bridge Surface Area: USD/m2 3,017

GR2：　PC Box Girder(crossing dike) （6 Spans）Item 1 Item 2 Item 3 Unit Quantity Unit Price (USD) Cost (USD) Note

17,184,39611,821,403

Bridge Girder Concrete m3 6,739 1,671.1 11,261,543Bridge Surface m2 9,300 60.2 559,860

1,626,133Concrete GR2 m3 6,079 267.5 1,626,133


47,100Temporary Jetty 1 shallow m2 0 0 0Temporary Jetty 2 deep m2 0 0 0Temporary Road m2 3,000 15.7 47,100

5,155,31922,339,71517,184,3965,155,319

Total Cost/ Bridge Surface Area:USD/m2 2,402

Direct Cost

Temporary Works


Cost

　Total CostDirect CostOverhead Charge

USD/m2

　Superstructure

　Substructure

　Foundation

Direct Cost

　Temporary Works

Direct Cost


Cost

Total Cost Direct Cost Overhead Charge

USD/m2

Direct CostSupersructure

Substructure

Foudation

3-93

GR3：　Super T typed PC Bridge （36 Spans）Item 1 Item 2 Item 3 Unit Quantity Unit Price(USD) Cost (USD) Note

40,005,60220,264,645


Concrete GR3 m3 20,407 275.9 5,630,291

Cast-in-situ Pile GR3　φ1500 m 16,480 768.7 12,668,176

1,442,490Temporary Jetty 1 shallow m2 800 614.5 491,600Temporary Jetty 2 deep m2 900 819.3 737,370Temporary Road m2 13,600 15.7 213,520

12,001,68152,007,28340,005,60212,001,681

Total Cost/ Bridge Surface Area:USD/m2 1,204

GR5：　Extradosed Bridge （１ Bridge：　6 Spans）Item 1 Item 2 Item 3 Unit Quantity Unit Price(USD) Cost (USD) Note

169,899,09179,838,903

Bridge Girder Concrete m3 118,043 631.3 74,520,546Pylon Concrete m3 1,064 1,971.1 2,097,250Bridge Surface m2 34,320 85.5 2,934,360Maintenance Facilities LS 1 286,747.0 286,747 400m2

8,259,048Concrete End pier m3 5,838 316.9 1,850,062Concrete Intermediate Pier m3 20,224 316.9 6,408,986

66,404,721Steel Pipe Sheet Pile m 20,600 2,196.4 45,245,840Cast-in-situ Pile φ2000 m 1,760 1,126.5 1,982,640Bottom Slab m3 11,316 659.0 7,457,244Top Slab m3 17,783 659.0 11,718,997

15,396,419Temporary Jetty 1 shallow m2 1,000 614.5 614,500Temporary Jetty 2 deep m2 16,600 819.3 13,600,380Temporary Road m2 0 0.0 0Tower Crane, Elevator L.S. 1 1,181,539.0 1,181,539

50,969,727220,868,818169,899,09150,969,727

Total Cost/ Bridge Surface Area : 6,436 USD/m2Exchange Rate; 1USD=83yen , as of Dec. 2010

Overhead Charge Rate of Overhead Charge : 30%Cost

Total CostDirect CostOverhead Charge

Temporary Works


Cost

Total CostDirect Costoverhead Charge

USD/m2

Direct CostSuperstructure

Substructure

Foundation

Direct Cost

Direct CostSuperstructure

Substructure

Foundation

Direct Cost

Temporary Works

4-1

Chapter 4 Evaluation of Environmental and

Social Aspects

In Vietnam, it is provided that environmental impacts shall be assessed in two stages of Initial

Environment Examination (IEE) and Environmental Impact Assessment (EIA). The assessment of the

project route is now in the intermediate phase of the first stage. This chapter reviews the environmental

and social impacts based on the IEE interim report, results of a current condition survey,

environment-related laws and regulations of Vietnam, etc.

4.1. Analysis of the current conditions from environmental and

social aspects

4.1.1. Analysis of the current conditions (1) Water quality

According to the IEE interim report, the pollution level of most of the surface stream water

located in the planned Ring Road No. 4 area is below the allowable value specified in the

Vietnamese technical standard QCVN08:2008 for surface stream water. However, the ammonium

ion (NH+) level exceeds the allowable value and the biochemical oxygen demand (BOD)

exceeded the allowable value at some measured points. In addition, groundwater contamination

was observed and (NH4＋), iron (Fe) and Coliform at most of the measured points exceeded the

allowable value specified in the technical standard QCVN09:2008 for underground water.

Figure 4-1 BOD（mg/ 1） Figure 4-2 NH4（mg/ l）

（Source： “Country Synthesis Report on Urban Air Quality Management, ” ADB, 2006）

0.0

0.2

0.4

0.6

0.8

1.0

1996 1997 1998 1999 2000 2001

NH4

02468

10121416

1996 1997 1998 1999 2000 2001

BOD

Vietnam Standard 4mg/l Vietnam Standard

0.05mg/l

4-2

(2) Cultural relics

According to the IEE interim report, Soc Temple is located approximately 10 km southwest of

the project route in the Soc Son district. Thanh Nhan Temple and Thnah Nhan Pagoda in Thanh

Xuan Commune are also located in the district. They are 300 m away from the IC between the

project route and NH No. 4 but the IEE interim report suggests moving the alignment by around

1,000 m.

In addition to the above, a field survey confirmed a pagoda on the project route in Than Ha in

the district.

(3) Land use 1)． Starting point 118+730～129+500

Most of the area is farmland where wet-rice double-cropping or double-cropping of wet-rice

and corn are practiced. According to local environmental consultants and local residents, the

cultivation periods of double-cropped rice are from December to April and from June to

September or October. Concerning double-cropping of rice and corn, rice is grown from February

to May and from June to September while corn is grown from September to January.

The expansion section of Provincial Highway No. 35 starts near KP126+750. There are

small-scale settlements along some sections of the highway. As described above, there is a

pagoda in Than Ha and there is also a small cemetery.

Photo 4-1 Paddy field near the starting point

Photo 4-2 Corn farm Photo 4-3 Settlement along Provincial Highway No. 35

Photo 4-4 Pagoda along Provincial Highway No. 35

Photo 4-5 Wetland along Provincial Highway No. 35

Photo 4-6 Cemetery along Provincial Highway No. 35

4-3

2)． 129+500～130+000 (Highway Section)

3)． 130+000～135+400 (Highway Section)

4)． 135+400～0+0.0 (Intersection with National Highway No. 2, starting point of RR-4)

（Expressway Section）

Most of the area is farmland where double-cropping of wet-rice and corn is practiced. The

area is dotted with landowners’ houses. There are small-scale settlements in some sections but the

route goes around west of Provincial Highway No. 35 in the 130+000～131+500 sections,

avoiding the residential areas of the Phu Cuong settlement. The route departs from Provincial

Highway No. 35 near KP134.

5)． 0+0.0～8+960 (Expressway Section)

There are farmhouses growing potatoes, tomatoes, turnips, etc. on the road alignment.

Photo 4-7 Turnip farm Photo 4-8 Irrigation canal

6)． 8+960～13+900 (Expressway Section)

This section is comprised of the Red River bridge section and waterside land along the river.

There are many houses in the waterside land north of the Red River. The houses are “stilted” as a

measure against flooding. There are good roads and many papaya farm households. There are

also many houses in the southern waterside land.

Photo 4-9 Houses in the

waterside land Photo 4-10 Papaya farm in

the waterside land Photo 4-11 Pond separated

from the Red River

4-4

7)． 13+900～18+940 (terminal point) (Expressway Section）

There are small-scale settlements chiefly engaged in banana farming.

Photo 4-12 Banana farm Photo 4-13 Banana farmhouses Photo 4-14 Near the terminal

point

(4) Air quality

According to the IEE interim report, the atmospheric pollution level in the vicinity of the

planned RR4 project area, excluding suspended dust particle (SDP), is below the allowable value

of the Vietnamese air quality standard “TCVN5937: 2005.”

Figure 4-3 CO（μg/m3） Figure 4-4 NO2（μg/m3） Figure 4-5 SO2（μg/m3）

（Source： “Vietnam Environment Monitor,” World Bank, 2003）

(5) Noise

According to the IEE interim report, the noise level in the residential areas in the vicinity of

the RR4 project area is below the allowable value of “TCVN5937: 2005” but exceeds the value

in some areas along the road.

(6) Ecosystem

The project route does not pass through any nature conservation parks. According to local

environmental consultants, the project route is unlikely to pass through any ecologically-sensitive

areas but a survey is required for the Red River and the wetland in KP126+750～129+500 because

rare aquatic organisms possibly inhabiting these areas.

0

50

100

150

200

250

2000 2001 2002 2003

MeanMax

0

5,000

10,000

15,000

20,000

25,000

30,000

2000 2001 2002 2003

MeanMax

050

100150200250300350400

2000 2001 2002 2003

MeanMax

Standard in Vietnam Standard in Vietnam Standard in Vietnam

4-5

4.1.2. Future forecast (without Project) There is a possibility of deterioration of air quality and increase in noise and vibrations due to

increased traffic jams in the central part of Hanoi city. There is also a possibility of worsening of

water pollution due to industrial water.

Concerning land use, farmland might be converted into industrial sites as a result of further

industrialization.

4-6

4.2. Environmental improvement effects associated with

implementation of the project

4.2.1. Natural and living environments

・ Possibility of reducing greenhouse gases by easing traffic jams

It is expected that concentrated traffic toward the central part of Hanoi will be eased by

promoting development on the northwestern side. This will ease traffic jams in the central part

of Hanoi and contribute to the global environment by reducing exhaust gases emitted from

vehicles (reduction of greenhouse gas emissions).

CO2 will be emitted during the road construction but it is expected to be offset after the road

is placed in service since traffic jams and annual CO2 emissions will be eased as noted above.

The following is method of analysis.

(1) Method of analysis

i) To calculate the future traffic volume and traveling speed of the traffic (both on “without” and

“with”)

ii) To calculate the future greenhouse gas emissions in the Traffic Network in Hanoi based on the

volume and traveling speed calculated in i).

Figure 4-6 Formula to calculate CO2 emissions by motor vehicles

Original unit of emission used for analysis is as shown in the Table 4-6 and 4-7. These tables. have

been introduced in “ Environmental Impact Assessment Guideline for CO2 emissions generated by

Road Project, Ministry of Environment, Japan. It shows that emission is decreasing as traveling speed

improves till 70km/h.

Annual total CO2 ＝ emissions (t-CO2/年)

(Traffic volume by vehicle type x Road length x Original unit of emission by vehicle type) x 365

1,000,000

Total travel length

4-7

Table 4-1 Original unit of emission Figure 4-7 Original unit of emission and travel speed

(Source: Ministry of Environment, Japan)

As for “with the Project,” emission from construction work shall be also considered.

CO2 emissions generated by the construction materials and works will be obtained through Table

4-8.

Table 4-2 Emission from construction

(Source: “Proposal for estimation method for CO2 emissions generated by expressway project” An

Incorporated foundation “Expressway Technology Center”, Japan)

iii) To calculate the environment improvement effect in the Traffic Network in Hanoi achieved by the

Project by comparing each year the results calculated above

small vehicle large vehicle10 294.1 1345.420 206.0 1132.430 167.6 962.940 144.9 835.550 131.2 750.060 124.4 706.370 123.4 704.580 127.7 744.490 137.0 826.1

100 151.3 949.5110 170.3 1114.7120 194.1 1321.7

2020

(km/h)

average speed

Original unit of emission

0.0

500.0

1000.0

1500.0

10 20 30 40 50 60 70 80 90 100 110 120

average speed(km/h)

Orig

inal

uni

t of

emiss

ion(

gCO

2/km

)

small vehicle

large vehicle

(tC/km) (tCO2/km)

earthwork 1,338 4,906.0

steel birdge 14,362 52,660.7

PC bridge 6,948 25,476.0

tunnel 3,609 13,233.0

sectionCO2 original unit of emission

4-8

Figure 4-8 Flow for analyzing emission of CO2

To calculate the estimated emission of CO2

･ Possibility of ease of air pollution, noise, and vibration

Traffic volume will increase in the future in the area around the project as stated in Chapter 3.

Therefore, it can be considered that air pollution, the noise, and the vibration will be deteriorated.

Air pollution, the noise, and the vibration in the traffic network can be expected to be eased through

ease of traffic jam as the positive impact of the Project.

4.2.2. Social environment ・ Job creation through road and bridge construction

The road and bridge construction in the project will create temporary jobs. ・ Job creation and growth of the local economy by promoting development of the

northwestern side

The project is expected to promote development of the northwestern side of Hanoi city,

create jobs, and facilitate growth of the local economy through time reduction of traveling

among Hai Phong Port, Thai Nguyen, Bach Dang, Bac Nih, Hoa Lac Park. .

・ Smoother travel by easing traffic jams

As described in 4.2.1, it is expected that concentrated traffic toward the central part of

Hanoi will be reduced by promoting development on the northwestern side. This will ease

traffic jams in the central part of Hanoi and promote smoother travel.

To grasp the current traffic volume and traveling speed

To calculate future traffic volume and traveling speed taking account

of growing traffic volume rate in the traffic net work

To calculate CO2 emissions in the traffic network in Hanoi with calculated future traffic volume

and traveling speed

To calculate the emission of CO2 generated through

machinery and materials in the construction work

(ii)T

o ca

lcul

ate

the

estim

ated

em

issi

on

of C

O2

(iii)T

o ca

lcul

ate

the

effe

ct To calculate the environment improvement effect in the Traffic Network in Hanoi achieved by

the Project by comparing each year the results calculated above

（through traveling）

（through construction）

<without Project > <with Project>

(i) T

o ca

lcul

ate

the

futu

re tr

affic

vo

lum

e an

d tra

velin

g sp

eed

To calculate the future traffic volume and traveling speed taking

account in growing traffic rate and traffic

To calculate the emission of CO2 through traffic volume and

traveling speed in the traffic network in Hanoi

4-9

4.3. Impact of the project from environmental and social

aspects

4.3.1. Impact of construction and operation of the project on environmental and social aspects

(1) Permit and briefing session

(1) - 1 EIA and environmental permit

EIA is now in the intermediate phase of IEE, which is the first of the two stages. No

environmental permit has been obtained so far.

(1) - 2 Briefing session for residents

No briefing session for residents has been held so far. It is necessary to hold a briefing session

for local residents, receive opinions from them, and try to form a consensus.

(2) Anti-pollution measures

(2) - 1 Air quality

Air quality might worsen due to dust generated by the construction work, exhaust gases

emitted from construction vehicles, etc. However, the impact can be reduced by taking

appropriate measures. There is also a possibility of deterioration of air quality due to vehicle

traffic on the project route after the road is placed in service. However, it is expected that traffic

jams in the central part of Hanoi city will be eased and the air quality as a whole will be

improved by promoting development that is well-balanced with the central part of Hanoi city.

(2) - 2 Water quality

There is a possibility of temporary water pollution due to construction of bridge foundation in

the river. There is also a concern over water contamination caused by sewage from construction

workers’ accommodation. It is necessary to take appropriate measures against sewage from the

accommodation.

(2) -3 Noise and vibrations

Noise and vibrations might increase temporarily due to the construction work and passage of

construction vehicles. Appropriate measures such as prohibition or restriction of night construction

are required. It is expected that noise and vibrations will reduce in the traffic network as a whole

after the road is placed in service by easing traffic jams.

4-10

(3) Natural environment

(3) - 1 Conservation area

The project route does not pass through any conservation areas.

(3) - 2 Ecosystem

Most of the project route passes through farming areas, so it is believed that the project will

have little possibility to give significant impact to rare species. However, a detailed survey is

required for wetlands and river areas.

(3) - 3 Hydrology

There is a possibility of flooding, which may have a hydrological impact.

(3) - 4 Geography and geology

There is a possibility of geographical and geological impact such as land subsidence but the

impact can be minimized by proposing a soft ground countermeasure construction method.

(4) Living environment

(4) - 1 Relocation of residents

There are approximately 380 houses on the project route. As many as around 1,700 residents

will need to be relocated, assuming 4 or 5 persons per household, if the project is implemented.

Operational Policy of World Bank on resettlement stipulates 1) to minimize the number of

residents for resettlements, 2) to provide appropriate compensation, 3) to secure living standard

equivalent to or more than that before resettlement. JICA/ JBIC standard also stipulates to refer

to this Operational Policy.

Many houses concentrate in the section 2) 129+500-130+000, 3) 130+000-135+400, 6)

8+960-13+90. Houses in the section 2) 129+500～130+000 and 3) 130+000～135+400 are in the

village along existing road, many of which can be considered to be avoided by small change of

alignment. As for section 6) 8+960～13+900, about 90 houses concentrate in 2km. It is difficult to avoid houses

near Red River inside the bank, but stakeholder meeting shall be hold and appropriate compensation

must be provided. Also for other sections, it is necessary to discuss with local residents fully in

advance and make efforts to form a consensus.

4-11

Table 4-3 Houses on the proposed alignment

section length main features approximate

number

1) starting point 118+730～129+500 10.77km rice field, from 126+750

existing road

130

2) 129+500～130+000 (Highway Section) 0.5km rice field, existing road 25

3) 130+000～135+400 (Highway Section) 5.4km rice field, existing road 80

4) 135+400～0+0.0 (cross section with

NH2) （Expressway Section）

1.44km rice field 5

5) 0+0.0～8+960 (Expressway Section) 8.96km agricultural land 35

north side of Red River 60 6) 8+960～13+900 (Expressway Section) 4.94km

south side of red river 30

7) 13+900～18+940 (ending point)

（Expressway Section）

5.04km agricultural land

(banana)

15

total 37.05km 380

(4) - 2 Lives and livelihoods

There is a possibility that completion of the project route will promote the development of

secondary and tertiary industries and change the industrial structure. The project might affect the

lives of neighborhood residents substantially, so full prior discussion is required.

Ferry services are available on the Red River but they are not liner services connecting the

crossing points on the project route. Therefore, no large-scale unemployment is expected upon

completion of the project route.

(4) - 3 Cultural heritage

There is a pagoda on the road alignments. An appropriate measure including revision of

alignment is required.

(4) – 4 Landscape

There is no scenic spot around the project route, so it is believed that the project will not have

significant impacts. However, full discussion with local residents is required.

(4) –5 Minorities

No survey has been conducted so far, so a survey of residency needs to be conducted.

4-12

(4) –6 Labor environments

An appropriate labor environment and safety management is required for construction

workers.

(5) Others

(5) - 1 Impact during the construction

As described above, the project might affect air quality, water quality, noise and vibrations,

ecosystem, hydrology, geography and geology. However, it is believed that the impact can be

minimized by developing and implementing an appropriate construction plan and measures to

reduce the impact.

(5) - 2 Monitoring

A monitoring plan is required to ensure no unexpectedly large impact on the environment and

confirm appropriate implementation of the measures planned to reduce the environmental impact.

4-13

Table 4-4 Summary of the JICA/JBIC Checklist

Category

Environment-related

items

Current conditions, forecasts, etc. Impact

(1) EIA and environmental permit

・In EIA, the first stage report is now being prepared. - 1 Permit

and briefing session (2) Briefing session

for residents ・It is necessary to hold a briefing session for local residents, receive

opinions from them, and try to form a consensus. -

(1) Air quality ・Air quality might deteriorate during the construction. However, it is possible to reduce the impact by taking appropriate measures.

・It is expected that traffic jams in the central part of Hanoi city will be eased and the air quality will be improved as a whole after the road is placed in service by promoting development that is well-balanced with the central part of Hanoi city.

**

(2) Water quality ・ Currently, the values at some measured points exceed environmental standards.

*

2 Anti-pollution m

easures

(3) Noise and vibrations

・Noise and vibrations might increase during the construction. However, it is possible to reduce the impact by taking appropriate measures.

・It is expected that noise and vibrations will reduce in the traffic network as a whole after the road is placed in service by easing traffic jams.

**

(1) Conservation area ・The project route passes through no conservation areas. * (2) Ecosystem ・Currently, it is believed that the impact on the ecosystem will be

small. A detailed survey is required for wetlands and river areas. **

(3) Hydrology ・There is a possibility of flooding and hydrological impact. **

3 Natural

environment

(4) Geography and geology

・There is a possibility of geographical and geological impact such as land subsidence.

・The impact can be minimized by proposing a soft ground countermeasure construction method.

**

(1) Resettlement of residents

・ Large-scale relocation of residents involving around 400 households will take place. ***

(2) Lives and livelihoods

・There is a possibility of changing the industrial structure, so full discussion with residents living in the vicinity is required. **

(3) Cultural heritage ・There is a pagoda on the road alignment. An appropriate measure such as a revision of alignment is required. **

(4) Landscape ・It is believed that there will be no significant impact. * (5) Minorities and

indigenous people ・A survey is required. *

4 Social environment

(6) Labor environment

・Appropriate labor and safety management is required during the construction period.

**

(1) Impact during the construction

・There is a possibility of an impact on air quality, water quality, noise and vibrations, ecosystem, hydrology, geography and geology. However, the impact can be minimized by developing and implementing an appropriate construction plan and measures to reduce the impact.

***

5 Others

(2) Monitoring ・Measures based on an appropriate monitoring plan are required. -

Legend: －: No impact, not applicable; *: Minor impact; **: Moderate impact; ***: Significant impact

4-14

4.3.2. Comparison between the proposed project and other options with less environmental impact

As shown in the table below, the option with the least environmental impact from a short-term

perspective is “zero option” which means implementing no project. As described above, however,

the proposed project is expected to make a great contribution to easing traffic jams and the growth

of the local economy. It is believed that the project will be able to maximize positive effects on the

environment and society by taking appropriate measures to reduce negative impacts.

Table 4-5 Comparison of the environmental impact

Alternative 1 Zero option

Alternative 2 Ferry service between the

crossing points

Alternative 3 Proposed project

Advantages ・Least direct impact on the environment

・Less environmental impact at crossing points

・Respond to increased traffic volume in the future and promote well-balanced development of the entire Hanoi city

・Contribute to the growth of the local economy

Disadvantages ・ Can neither promote development of Hanoi city nor respond to further traffic jams

・Cannot respond to increased traffic volume in the future

・Does not contribute to easing traffic jams

・ Involves large-scale resettlement of residents

・ Involves environmental impacts including an impact on the crossing points

4.3.3. Discussions with the implementing agency and collecting information local experts

EIA is now in the intermediate phase of the first stage, which is an early stage of the

assessment. This time, therefore, no discussion was made with the implementing agency since it

was determined that the agenda was insufficient for discussion. However, a direct hearing was

conducted by consultants who are implementing EIA to complement information. Supposed

stakeholders are as follows:

・Ministry of Natural Resources and Environment

・Ministry of Transport

・Ministry of Planning and Investment

・Hanoi City People’s Committee

・District-level People’s Committee

・TEDI

4-15

・Environmental consultants

・Local residents

4-16

4.4. Overview of the environment- and society-friendly laws

and regulations in the partner country

4.4.1. Overview of environment- and society-friendly laws and regulations related to the implementation of the project

(1) Overview of environment-related laws and regulations

(1) - 1 EIA environment-related laws and regulations

1) Law on Environmental Protection: No. 52/2005/QH11

This law provides for implementation of EIA, including projects subject to EIA (Article 18),

matters to be included in reports (Article 20), and approval procedures (Article 21).

2) Decree No. 80/2006/ND-CP

This decree provides administrative instructions for the above Law on Environmental

Protection. It provides details of projects subject to EIA (Article 6 and Additional Clause 1),

requirements to serve as an EIA implementation consultant (Article 8), documents required for

EIA approval (Article 9), deadline of the review for approval (Article 12), situations that require

additional EIA (Article 13), etc.

3) Circular No. 08/ 2006/ TT-BTNMT

This circular provides administrative instructions for “1) Law on Environmental Protection”

and “2) Decree No. 80/2006” on the implementation of EIA. It also provides for the method of

implementing public consultation (Article 3-2).

4) Decree No. 21/2008/ND-CP

This decree complements and amends “2) Decree No. 80/2006.” It amends part of the details

of projects subject to EIA and obliges project implementers to discuss with the commune-level

Fatherland Front Committee (complement and amendment to Article 6a).

5) Circular No. 05/2008/TT-BTNMT

This is a replacement of “2) Circular No. 8/2006” on the implementation of EIA. It provides

administrative instructions for the above “1) Law on Environmental Protection,” “2) Decree No.

80/2006” and “4) Decree No. 21/2008.”

4-17

(1)-2 Land acquisition and relocation of residents

1) Law on Land: No. 13-2003-QH11)

This law provides for acquisition of land to be used for economic growth in Article 40 and

compensation for residents to be relocated in Article 42. It also provides for provision of

alternate land or monetary compensation. According to this law, the province- or city-level

people’s committee is responsible for making decisions on land acquisition from enterprises and

religious facilities while the district-level people’s committee is responsible for making decisions

on land acquisition from citizens (Article 44).

2) Decree No. 197/ 2004/ ND-CP

This decree provides for the relocation of residents and compensation.

3) Circular No. 116/2004/TT-BTC

This circular provides guidelines on the application of “Decree No. 197/ 2004.”

4) Decree No. 69/2009/ND-CPA)

This decree provides for the definition of compensation and relocation of residents (Article 14)

and support for relocation and measures to restore livelihoods (Article 17- Article 23). It also

specifies the land acquisition procedures (Article 27- Article 33).

(1)-3 Others

Other major environment- and society-friendly laws and standards of Vietnam are as follows:

Table 4-6 Environment- and society-friendly laws Category Law

Law on Forest Protection and Development, 2004 Law on Biological Diversity, 2008 Natural environment Law on Water Resource

Cultural heritage Law on Cultural Heritage, 2001 and its Amendment, 2009

4-18

Table 4-7 Environment-related standards Category No. Standards

TCVN5937-2005 Air quality standards Air quality

TCVN6438-2001 Vehicle exhaust gas standards

TCVN5942:1995:1995 Surface stream water quality standards

TCVN5944:1995 Underground water standards Water quality

TCVN6774:2000 Fresh water quality standards for aquatic organisms protection

TCVN6962:2001 Vibrations caused by construction and plants－Maximum allowable value in public and residential areas

Noise and vibrations

TCVN5949-1998 Noise standards

(2) Difference from the JICA/ JBIC guidelines

(2)-1 Public consultation

The JICA/JBIC guidelines mandate implementation of public consultation while Vietnamese

laws and regulations require it “as needed,” not making it mandatory.

(2)-2 Informal settler

The JICA/JBIC guidelines include informal settlers in compensation for relocation while,

basically, Vietnamese laws and regulations exclude informal settlers from compensation. However,

informal settlers may be eligible for compensation in Vietnamese laws and regulations depending on

their length of residence.

4-19

4.4.2. Details of EIA, etc. of the partner country required to implement the project An overview of EIA required in Vietnam is as follows:

Table 4-8 EIA overview

Overview Project ・ Important national projects

・ Projects that use part of the land of a natural reserve, national park, historical/cultural relic, natural heritage or registered sites of scenic beauty or have adverse effects on them

・ Projects that have might have adverse effects on a water resource, basin, coastal area or ecosystem protection area

・ Infrastructure construction projects in an economic zone, industrial complex, high-tech complex, export processing zone or home industry village

・ New construction projects in an urban district or concentrated residential district ・ Projects that involve large-scale development or use of underground water or natural

resources ・ Other projects that are likely to have adverse effects on the environment

【Law on Environmental Protection, Article 18-1】【Decree No. 80/2006/ND-CP】Timing ・ Simultaneously with a project feasibility study report

【Law on Environmental Protection Article 19- 2】・ Permission of investment, construction or development shall be approved and issued only

after the EIA report is approved 【Law on Environmental Protection, Article 22-4】

Description 1. Detailed explanation of the project 2. Assessment of conditions, vulnerability and capacity of the environment 3. Assessment of environmental impact, environment components to be affected and

social/economic components, and accident risks 4. Measures to reduce the impact, prevent environmental accidents, and countermeasures 5. Commitment to take measures for environmental conservation during construction and

operation of the project 6. Environmental management and audit plan 7. Environmental protection budget 8. Opinions and objections of representatives of communes and communities in the project

site 9. Provision of values and data of assessment

【Law on Environmental Protection, Article 20】Review and approval

① Projects decided or approved by the National Assembly, government or Prime Minister and projects that involve multiple industries or provinces

② Projects of which the approval authority belongs to central government ministries or agencies, excluding �

�Project-approving agency, environmental specialized agency of the province where the project site is located, experts, etc.

③ Projects of which the approval authority belongs to the province-level people’s committee

� Province-level people’s committee, province-level environmental specialized agency, environmental experts, etc.

【Law on Environmental Protection, Article 21- 1 to 21-3】Agency responsible for forming the approving agency and the

Agency responsible for forming the approving agency and the review committee for each of the three categories noted in the above “Review and approval.” Approval must be discussed and determined within 15 workdays from the date of receipt. ① Ministry of Natural Resources and Environment ② Central government ministries and agencies, each province-level people’s committee

4-20

review committee

【Law on Environmental Protection, Article 21-7】【Law on Environmental Protection, Article 22-1, 3】

Review deadline

① Projects of which the decision and approval authority belongs to the Prime Minister, government or National Assembly, and projects that involve multiple sectors or provinces: within 45 days from the date of document receipt

② Others: within 30 workdays from the date of document receipt 【Decree No. 80/2006/ND-CP, Article 12】

Additional EIA ・ When there is a change of the site, scale, design ability or technology of the project ・ When the project is not implemented within 24 months from the date of EIA report

approval 【Decree No. 80/2006/ND-CP, Article 13】

Rights of organizations, communities, individuals, etc.

Organizations, communities and individuals have the right to send a written request or petition to the reviewing agency. The reviewing agency is responsible for considering requests and petitions before making any conclusion or decision.

【Law on Environmental Protection, Article 21-6】

Publication, discussion, etc.

Measures for environmental conservation shall be publicized at the project site. 【Law on Environmental Protection, Article 23-1b】

4-21

4.5. What the Vietnam government should implement to realize the project

4.5.1. Completion of an EIA report

EIA shall be implemented in earlier stage, and the result shall be reflected to the Project

appropriately.

4.5.2. Discussion with local residents As described above, there are around 380 households on the road alignment. As many as 1,700

residents will be affected directly, assuming four or five persons per household. The project

involves widening of an existing road on part of the route, affecting settlements along the road.

This must be avoided if possible and, where this is impossible, appropriate measures including

compensation must be taken.

The project might alter the industrial structure. Therefore, the project might affect residents

living in the vicinity who are not living along the project route. It is necessary to discuss with local

residents fully and form a consensus to the extent possible.

4-22

【Supplement】JICA/ JBIC Checklist C

ateg

ory

Items related to the environment Major check points Yes: Y,

No: N* Specific arrangements/consideration for the environment and society

(Reasons and grounds for Yes/No, measures, etc.)

(1) EIA and environmental permit

(a) Have an environmental assessment report (EIA report), etc. been produced?

(b) Have the EIA report, etc. been approved by the government of the interested country?

(c) Does the approval of the EIA report, etc. have collateral conditions? Will the conditions be satisfied when there are collateral conditions?

(d) Has an environmental permit other than the above been obtained from the local supervisory authority, when required?

(a) N

(b) N

(c) -

(d) N

(a) The IEE report is being prepared.

(b) Unapproved

(c) Same as the above.

(d) The IEE report is being prepared but a permit has not been obtained yet.

(2) Briefing session for local stakeholders

(a) Has an appropriate briefing session been held for local stakeholders on the details and impact of the project, including information disclosure, and has their understanding been gained?

(b) Have comments of residents, etc. been reflected in the project?

(a) N

(b) N

(a) It is necessary to explain the details and impact of the project and receive opinions from interested municipalities and residents in an appropriate manner.

(b) It is necessary to reflect the comments in the project appropriately.

1 Pe

rmit

and

brie

fing

sess

ion

(3) Review of alternative proposals

(a) Have multiple alternative proposals of the project (including items related to the environment and society) been reviewed?

(a) SR (a) Further examination will be required.

(1) Air quality

(a) Will there be an impact by air pollutants emitted from traveling vehicles, etc? Will the impact meet the environmental standards, etc. of the interested country?

(b) Will the project further worsen the air pollution when the air pollution level near the route already exceeds the environmental standards? Will the project take measures for air quality?

(a) SR

(b) SR

(a) Air pollutants will be emitted from traveling vehicles but it is believed that they will have only minor adverse effects on the surrounding environment.

(b) The current air pollutant concentration mostly meets the Vietnamese environmental standards, excluding the SPM level. SPM exceeds the standards and might worsen further.

2

Anti-pollution m

easures (2) Water quality

(a) Will the downstream water quality be worsened by soil runoff from embankments, cut-earth portions, etc. where surface soil is exposed?

(b) Will the water flowing off the road surface contaminate water resources including underground water?

(c) Will the drainage from the parking and service areas, etc. meet the drainage

(a) Y

(b) Y

(c) SR

(a) Embankments and cut earth portions might cause muddy water during the construction.

(b) The water flowing off the road surface is unlikely to contaminate water resources badly. (Forecasting is required later in EIA.)

(c)There is a plan for a service area and the sewage of the service area

4-23

standards, etc. of the interested country? Will there be any water areas that do not meet the environmental standards of the interested country due to the drainage?

(d) Will the project affect water resources including wells in the vicinity?

might affect the water quality after the road is placed in service.

(d) Same as (b).

(3) Waste (a) Will the waste from the parking and service areas, etc. be handled/ disposed of appropriately based on the regulations of the interested country?

(a) SR (a)

(4) Noise and vibrations

(a) Will the noise and vibrations caused by traveling vehicles meet the standards, etc. of the interested country? (a) SR (a)

* Yes: Y, No: N, P: Possible, L: Less Unlikely, SR: Further Study Required

4-24

C

ateg

ory

Items related to the environment Major check points Yes: Y

No: N Specific arrangements/consideration for the environment and society

（Reasons and grounds for Yes/No, measures, etc.)

(1) Reserve (a) Is the project site located in a reserve designated by laws of the interested country, international treaties, etc? Will the project affect the reserve?

(a) N (a) There is no reserve along the project road.

(2) Ecosystem

(a) Is there any primeval forest, natural tropical forest, ecologically important habitat (coral reef, mangrove wetland, tidal flat, etc.) in the project site?

(b) Is there any habitat of precious species that need protection based on laws of the interested country, international treaties, etc. in the project site?

(c) Will any measures be taken to reduce expected serious impacts on the ecosystem?

(d) Will any measures be taken against blocking migration paths of wildlife and livestock, disjunction of habitats, traffic accidents involving animals, etc?

(e) Will the project road cause forest destruction, poaching, desertification, dry marsh, etc. associated with development? Is there any possibility of alien species (non-native species that did not inhabiting the area previously), diseases, pest, etc. moving in and disturbing the ecosystem? Are there any measures prepared against them?

(f) Will the natural environment be impaired substantially as a result of new area development when a road is constructed in an undeveloped area?

(a) L (b) L (c) - (d) SR (e) SR (f) L

(a) No important habitat, etc. has been confirmed along the project road.

(b) No habitat of precious species, etc. has been confirmed along the project road but this point needs to be confirmed regarding rivers and lakes.

(c) No serious impacts on the ecosystem by the project road have been forecasted.

(d) Appropriate measures including measures to prevent animal entrance are required.

(e) The project road will pass primarily through plains in farming areas, so no major impact is forecasted. However, the road will pass through wetlands and their neighboring forests and the impact on them needs to be reviewed. (f) Same as the above.

(3) Hydrology (a) Will geographic alternation or construction of a new structure have adverse effects on the flow of surface water and underground water?

(a) Review required

(a) Construction of embankments and a bridge might affect the surface stream water, so the design needs to consider flooding.

3 N

atur

al e

nviro

nmen

t

(4) Geography and geology

(a) Are there any geologically unsuitable points where soil falls or landslide might occur on the route? If so, will appropriate measures be taken in the construction method, etc?

(b) Are civil engineering works such as construction of embankments and

earth-cutting forecast to cause soil falls or landslide? Will appropriate measures be taken to prevent soil falls or landslide?

(c) Will soil run off from embankments, cut earth portions, soil yards or earth and sand pits? Will appropriate measures be taken to prevent soil runoff?

(a) SR (b) SR (c) SR

(a) The project road will pass through plains, so it is unlikely to have a major impact. However, the road will pass through soft ground areas and an appropriate construction method, etc. needs to be considered in the detailed design stage.

(b) There is a possibility of soil runoff from embankments and cut earth portions, so appropriate measures need to be considered in the detailed design stage to prevent soil runoff.

(c) Same as the above.


4-25

C

ateg

ory




4 So

cial

env

ironm

ent

(1) Relocation of residents

(a) Will the implementation of the project cause involuntary relocation of residents? If so, will efforts be made to minimize the impact of relocation?

(b) Will an appropriate briefing session be held for residents to be relocated in

advance to explain compensation and measures to restore their livelihoods? (c) Will a study be conducted for relocation of residents and will a relocation plan

be developed including compensation at the reacquisition price and restoration of livelihoods after relocation?

(d) Will compensation money be paid before relocation? (e) Is there a written compensation policy? (f) Does the relocation plan pay appropriate attention to the socially vulnerable

among residents to be relocated, particularly to females, children, elderly people, poor people, minorities, indigenous people, etc?

(g) Will a consensus be formed with residents to be relocated before relocation? (h) Will a system be established for appropriate relocation of residents? Will

sufficient ability and budget be secured for relocation? (i) Are there plans for monitoring the impact of relocation? (j) Has a complaint handling mechanism been established?

(a) SR (b) SR (c) SR (d) N/A (e) Y (f) SR (g) N/A (h) SR (i) SR (j) SR

(a) Some sections of the project road will pass through residential areas, so the project will cause the need to relocate residents. Measures need to be considered to minimize the impact.

(b) An appropriate briefing session is required. (c) No study has been conducted so far and no relocation plan has

been developed yet. An appropriate study and relocation plan are required.

(d) Neither government ordinances nor circulars provide for the time of payment of compensation money. Payment before relocation needs to be discussed.

(e) A compensation policy needs to be developed based on government ordinances, circulars and JICA/JBIC guidelines.

(f) It is necessary to develop a plan, giving appropriate consideration to the socially vulnerable.

(g) It is necessary to secure time for full discussion and make efforts

to form a consensus. (h) The Hanoi City People’s Committee needs to take appropriate

measures for the relocation of residents. Support and confirmation by international consultants might be required.

(i) A monitoring plan needs to be developed. (j) A complaint handling mechanism needs to be established.


4-26

C

ateg

ory




(2) Lives and livelihoods

(a) Will construction of a road or bridge as part of new development have an impact on existing means of transportation and the lives of residents engaged in the transportation? Will it lead to substantial alternation of land use and livelihoods, unemployment, etc? Does the project give consideration to reduce such impact?

(b) Will the project have adverse effects on the lives of other residents? Will the project make any arrangements to reduce the impact as needed?

(c) Is there any risk of diseases (including infectious diseases such as HIV)

caused by population inflow from other areas? Will appropriate public health arrangements be made as needed?

(d) Will the project have adverse effects on the road traffic in the surrounding areas?

(e) Will the project road disturb the travel of residents? (f) Will highway structures (overpass, etc.) disturb sunlight or radio reception?

(a) P (b) SR (c) SR (d) SR (e) P (f) L

(a) There is no regular ferry service in the bridge construction section, so the project will have almost no impact on the lives of people engaged in a ferry service. There will be alternations of land use and livelihoods, so full discussion with residents living in the vicinity is required.

(b) The project will not necessarily have adverse effects but it is a large-scale project and full discussion with residents living in the vicinity is required.

(c) Measures such as appropriate training are required.

(d) The project might cause traffic jams during construction, so

appropriate monitoring is required. (e) The road might split living areas, so full discussion with residents

is required. (f) The structures are unlikely to cause a problem but it is desirable to

review measures in the detailed design stage, as needed, to reduce the impact.

(3) Cultural heritage

(a) Will the project possibly harm archaeologically, historically, culturally and religiously valuable heritage, historic sites, etc? Will the project consider measures provided in domestic laws of the interested country?

(a) Y (a) A survey of current conditions of confirmed pagodas (religious buildings) and cemetery on the project route. It is necessary to discuss fully with residents living in the vicinity and take measures such as avoiding such sites to the extent possible.

(4) Landscape (a) Will the project have adverse effects on a landscape requiring special

considerations, if any? Will necessary measures be taken if there are adverse effects?

(a) SR (a) The project is unlikely to have adverse effects on the landscape but full discussion with residents living in the vicinity is required.

4 So

cial

env

ironm

ent

(5) Minorities and indigenous people

(a) Does the project give consideration to reduce the impact on the culture and way of life of minorities and indigenous people of the interested country?

(b) Will the rights of minorities and indigenous people for land and resources be respected?

(a) SR (b) SR

(a) Consideration needs to be made to reduce the impact on the culture and way of life of minorities and indigenous people of the interested country.

(b) Full consideration needs to be given for minorities and indigenous people.


4-27

C

ateg

ory




4 So

cial

env

ironm

ent

(6) Labor environment

(a) Will the project observe the laws related to the labor environment of the interested country?

(b) Will the project take hardware safety measures for people involved in the project such as installation of safety equipment and control of harmful materials to prevent industrial accidents?

(c) Will the project plan and implement software measures such as development of a health and safety plan and provision of safety training for workers, etc. (including traffic safety and public health training programs) for people involved in the project?

(d) Will the project take appropriate measures so that security personnel involved in the project will not violate the security of the people involved in the project and local residents?

(a) SR (b) SR (c) SR (d) SR

(a) Monitoring is required during the construction. (b) Appropriate safety measures need to be taken in the detailed

design stage. (c) Appropriate safety training programs need to be developed in the

detailed design stage. (d) Appropriate training programs need to be developed in the

detailed design stage.

(1) Impact during the construction

(a) Will measures be taken to reduce contamination during the construction? (b) Will the construction have adverse effects on the natural environment

(ecosystem)? Will the project take measures to reduce the impact? (c) Will the construction have adverse effects on the social environment? Will the

project take measures to reduce the impact?

(a) SR (b) SR (c) SR

(a) Measures to reduce contamination need to be reviewed in EIA. (b) Measures to reduce the impact need to be reviewed in EIA. (c) Construction workers might cause problems with residents living

in the vicinity, so appropriate training programs need to be developed. Monitoring is also required.

5 O

ther

s

(2) Monitoring

(a) Of the above items related to the environment, will the project plan and implement a contractor monitoring program on items that will have an impact on the environment?

(b) How are the items, method, frequency, etc. of the project determined? (c) Will a contractor monitoring system be established? (d) Have the method, frequency, etc. of reporting from the contractor to the

supervisory authority, etc. been established?

(a) SR (b) SR (c) SR (d) SR

(a) An appropriate monitoring program is required. (b) Same as the above. (c) Same as the above. (d) Same as the above.


5-1

Chapter 5 Financial and Economic Evaluation 5.1 Project Cost

Project cost of road section with 4 lanes from Trung Gia to Phuc Yen is shown to Table 5-1, with

6 lanes from Phuc yen to Phung is shown to Table 5-2 and whole road section from Trung Gia to

Phung is shown to 5-3. Exchange Rate between us$ and Japanese Yen is 83 yen/us$ in Feb.2011.

Costs shown in the parenthesis are us$ basis in mil.

Based on the existing design quantity of 3 bridges option, the 3 bridges cost has been reviewed

with contracted Nhat Tan bridge’s price and other records in Japan as of Dec 2010.

Table 5-1 Project Cost from Trung Gia to PhucYen (4 Lanes, L=17km)

Items Cost(bil.Yen),（mil. us$） Note

Construction Cost(road） 6.9 ( 83.1) Including middle & Small sized Bridges and IC

Traffic Control Facilities 0.1 (1.2) Land Acquisition 1.9 ( 22.9) D/D & Consultant 0.8 ( 9.6) Contingency 1.9 ( 22.9) Total Cost 11.6 ( 139.8)

Table 5-2 Project Cost from Phuc Yen to Phung（6 Lanes, L＝20km）

Items Cost（bil.Yen）,（mil. us$） Note Road 11.5 (138.6) Including middle &

small sized Bridges and IC

PC Box Girder Bridge

33.5 ( 403.6) Option-1

Steel Cable-Stayed Bridge

41.0 (494.0) Option-2

HONG- HA Bridge Extradosed Bridge 41.0 (494.0) Option-3

Const. Cost

Total Const. Cost 45.0(542.1)～52.5(632.5)

Land Acquisition 8.2 (98.8)

D/D & Consultant（Including Traffic Control Facilities）

5.1 (61.4)

Contingency 10.4 (125.3) Const. Cost＊20%

Total Cost 68.7(827.7)～76.2(918.1)

5-2

Table 5-3 Total Project Cost from Trung Gia to Phung（L=37km）

Items Cost（mi. us$） Note

Construction Cost 51.9(625.3)~59.4(715.7) Traffic Control Facilities 0.4 ( 4.8) Land Acquisition 10.1 (121.6) D/D & Consultant 5.9 (710.8) Contingency 12.3 ( 148.2) Total Cost 80.6 (971.1)~88.1(1,061.4)

Table 5-4 Project Cost in Vietnamese Dong and Japanese Yen Currency

in case of Cable-Stayed bridge (from Trung Gia to Phung, 37km)

Items Inner Currency

Dong:（Bil.VND）

Foreign Currency:Yen

(100mil.Yen)

Total Cost

in Japanese Yen

(100mil.Yen)

Note

Construction Cost

10,840.5 141 594 Cable –Stayed

Bridge

ETC Facilities 0 4 4

Land Acquisition Cost

2,417.0 0 101

Consultant Fee 478.6 39 59

Contingency 1,029.0 80 123

Total Cost 14,765.1 264 881


＊ Foreign Currency Ratio:264/881=30%

5-3

Table 5-5 Project Cost in Vietnamese Dong and Japanese Yen Currency

in case of PC Box Girder Bridge (from Trung Gia to Phung, 37km)

Item Inner Currency

Dong:（Bil.VND）

Foreign Currency :Yen

(100mil.Yen)

Total Cost

in Japanese Yen

(100mil.Yen)

Note

Construction Cost

11,175.9 52 519 PC Box Girder

Bridge

ETC Facilities 0 4 4

Land Acquisition Cost

2,417.0 0 101

Consultant Fee 478.6 39 59

Contingency 1,029.0 80 123

Total Cost 15,100.5 175 806


＊＊ Foreign Currency Ratio: 175/806=22％

In case of cable-stayed bridge Table 5-4, material and construction cost of diagonal cable and

steel girder have been appropriated as foreign currency (Japanese Yen), because they will be

imported from Japan or other foreign countries, besides two thirds of the overhead expenses has

been appropriated as foreign currency (Japanese Yen).

And then in case of the PC box girder bridge in Table 5-5, two thirds of the overhead expenses

has been appropriated as foreign currency (Japanese Yen) too.

With regard to consultant fee and contingency, two thirds of the total fee has been appropriated as

foreign currency.

5-4

5.2 Outline of the Result of Preliminary Financial and Economic Analysis

5.2.1 Calculation Basis for FIRR

When calculating Financial Internal Rate of Return (hereinafter referred to as FIRR) on

Investment for RR4(37km), calculation basis has been set taking consideration of indexes of

economical conditions in Vietnam as stated below. After Lehman-Shock, inflation index is not so

stable that inflation index has been set with averaged 5-year index except inflation index in the year

of 2008. Discount rate has been set with averaged nominal lending interest rate in past 5-year.

Substantial interest rate has been supposed to be 4.0% from the relation between discount rate and

inflation rate. An averaged balance between nominal lending interest rate and inflation rate from

2000 to 2007 is 2.8%. It varies strongly after 2008, so it will be difficult to examine it’s suitability.

But it is thought that the discount rate and inflation rate set below suitable in the main.

Discount Rate : 12.0%

Inflation Rate : 8.0%

Project Period: 30～40 years

Toll Price : 5 cent/km（900 VND/km）, (Toll Price will be revised according to inflation rate every

year. )

Operation & maintenance cost : 50（Thousands USD/km/year）(refer to Page 3-68)

Dividend for SPC : None (Retined earnings assumed as profit)

Figure 5-1 Indexes of lending interest rate, inflation rate etc., in Vietnam

‐10.0

‐5.0

0.0

5.0

10.0

15.0

20.0

25.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Lending interest rate (%) Deposit interest rate (%)

Inflation, GDP deflator (annual %) Real interest rate (%)

5-5

Table 5-6 Indexes of lending interest rate, inflation rate etc., in Vietnam 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Lending interest rate (%) 10.6 9.4 9.1 9.5 9.7 11.0 11.2 11.2 15.8

Deposit interest rate (%) 3.7 5.3 6.4 6.6 6.2 7.1 7.6 7.5 12.7Inflation, GDP deflator (annual %) 3.4 1.9 3.9 6.7 8.2 8.2 7.3 8.2 21.7 5.6Real interest rate (%) 6.9 7.3 4.9 2.6 1.4 2.6 3.6 2.7 -4.9

Source: Data-Base of World Bank

Table 5-7 Forecast of Traffic Amounts and Toll Revenue Traffic (1000 vehicles/day) Toll Revenue Note

�NH3-NH2 �NH2-NH32 (mil. USD/year)

2015 15.9 22.5 17.9 Supposed to be opened in 2015

2020 25.1 33.1 37.9

2025 34.1 45.6 72.9

2030 45.1 60.9 136.0

5.2.2 Case setting to be analyzed in PPP scheme for implementing construction project

Six cases of PPP scheme FIRR analysis has been proposed and conducted in order to be

considered which is the best implementation scheme for investment of private company and

government.

Figure 5-2 Studied Section

(2) Phuc Yen – Phung （19km） (1) Trung Gia – Phuc Yen（17km）

Hong Ha bridge Phung Phuc Yen

Trung Gia

Noi Bai Airport

NH-32

NH-18

NH-3

5-6

Table 5-8 Supposed 6 cases in PPP scheme for implementation of the project “ RR4 (37km)” Road Length

Project Cost

Investors for the Project

Form of Investment

Case-0

37km

971 mil.USD

Gov.’s VGF: 0 % Private Investors :100 %（Const.、D/D、S/V、O&M）Debt/Equity Ratio= 7 : 3


banks

Case-1

37km

971 mil.USD

Gov.’s VGF: 30% Private Investors :70 %（Const.、D/D、S/V、O&M）

D/E Ratio＝ 7 : 3


banks

Case-2

37km

971 mil.USD

Gov.’s VGF: 30% Private Investors :70 %（Cont.、D/D、S/V、O&M）D/E Ratio= 7 : 3

･Capital Investment ･Borrowing from Public fund such as JICA,W.B.,and ADB 2 STEP Loan

Case-3

37km

971 mil.USD

Gov.’s VGF: 50% Private Investors : 50%（Const.、D/D、S/V、O&M）D/E Ratio= 9 : 1


2 STEP Loan

Case-4

20km (Phuc Yen~ Phung ） 828 mil.USD

Note 1

Gov.’s VGF: 30% Private Investors : 70%（Const.、D/D、S/V、O&M）D/E Ratio= 7 : 3


2 STEP Loan

Case-5

Construction 32km

425 mil.USD O & M

37km Note 2

Gov. will construct Hong Bridge with JICA’s Yen Loan.

Private Investors will be responsible for O & M of whole section of 37km and construction of the road section 32km except Hong Ha Bridge.

･JICA’s Yen Loan ･Capital Investment ･Borrowing from commercial banks

Note 1. Design and construction of the section from Trung Gia to Phuc Yen, 17km will be

separately implemented by other PPP contractor. And PPP contractor of this project will implement

design, construction of the section from Phuc Yen to Phung,20km, besides operation and

maintenance of whole section from Trung Gia to Phung, 37km integratedly.

Note 2. Design and construction of the Hong Ha bridge with length 5km will be implemented by

the government utilizing ODA loan separately. And PPP contractor of the project will implement

design and construction of the section from Trung Gia to Phung except Hong Ha bridge with length

32km, besides operation and maintenance of the whole section from Trung to Phung including

Hong Ha bridge with length 37km.

5-7

5.2.3 Result of preliminary financial analysis

(1) FIRR in Case-0

・In case of borrowing project fund from commercial banks, FIRR resulted in 3.2% （‹ 12％）and

shown it in poor financially.

・Construction cost of Hong Ha Bridge is so expensive that it has given a great impact to viability

of the project.

・Interest burden is heavy especially within 10 years after operation, which is higher than toll

income. It will also have cash-flow problem since deficit on single year will continue till 18 years

after operation.

FIRR: 3.2 %

NPV: -617.4（mil USD）

Turned into profit in single year : 2033（after 18 years operation ）

Turned into profit (accumulated): 2044（after 28years operation）

Financing Scheme

Terms of repayment

Interest Rate：12.0 %

Period：35 years

Method of payment：equal principle method

Construction S/V D/D O&M

Private Investors：100％

Loan from commercial bank: 70% Equity

Toll

income

subordinate

Interest Rate 12..0 %

5-8

Table 5-9 FIRR , Cash Flow in Case-0

Year Investment Return MaintenancePaid Interest Tax Repayment Cash Flow 1 -293.1 0.0 0.0 0.0 0.0 0.0 -293.12 0.0 0.0 0.0 0.0 0.0 0.0 0.03 0.0 0.0 0.0 0.0 0.0 0.0 0.04 0.0 0.0 0.0 -20.5 0.0 0.0 -20.55 0.0 0.0 0.0 -26.2 0.0 0.0 -26.26 0.0 27.6 -1.8 -96.4 0.0 -1.6 -72.17 0.0 32.6 -1.9 -105.3 0.0 -1.8 -76.48 0.0 38.2 -2.0 -114.8 0.0 -2.0 -80.79 0.0 44.4 -2.2 -124.6 0.0 -2.2 -84.6

10 0.0 51.5 -2.4 -135.0 0.0 -2.5 -88.411 0.0 59.7 -2.6 -145.7 0.0 -2.8 -91.312 0.0 69.0 -2.8 -156.6 0.0 -3.1 -93.513 0.0 79.3 -3.0 -167.5 0.0 -3.5 -94.714 0.0 90.9 -3.2 -178.5 0.0 -3.9 -94.815 0.0 103.8 -3.5 -189.3 0.0 -4.4 -93.416 0.0 119.5 -3.8 -199.3 0.0 -4.9 -88.617 0.0 137.0 -4.1 -208.5 0.0 -5.5 -81.118 0.0 156.6 -4.4 -216.2 0.0 -6.2 -70.219 0.0 178.4 -4.8 -222.2 0.0 -6.9 -55.420 0.0 202.8 -5.1 -225.7 0.0 -7.7 -35.821 0.0 219.0 -5.6 -227.4 0.0 -8.7 -22.622 0.0 236.5 -6.0 -227.2 0.0 -9.7 -6.423 0.0 255.4 -6.5 -226.0 0.0 -22.9 0.124 0.0 275.9 -7.0 -223.3 -4.4 -41.2 -0.025 0.0 297.9 -7.6 -218.3 -11.0 -61.6 -0.626 0.0 321.8 -8.2 -210.9 -18.7 -83.3 0.727 0.0 347.5 -8.8 -200.9 -27.5 -111.1 -0.828 0.0 375.3 -9.5 -187.6 -37.6 -140.2 0.429 0.0 405.3 -10.3 -170.8 -49.1 -175.5 -0.330 0.0 437.8 -11.1 -149.7 -62.3 -214.0 0.631 0.0 472.8 -12.0 -124.0 -77.2 -259.9 -0.432 0.0 510.6 -13.0 -92.8 -94.2 -310.2 0.433 0.0 551.5 -14.0 -55.6 -113.5 -81.8 286.634 0.0 595.6 -15.1 -45.8 -126.7 -37.8 370.135 0.0 643.2 -16.3 -41.3 -139.4 -42.4 403.836 0.0 694.7 -17.6 -36.2 -153.2 -47.5 440.237 0.0 750.3 -19.0 -30.5 -168.2 -53.2 479.438 0.0 810.3 -20.6 -24.1 -184.4 -59.5 521.639 0.0 875.1 -22.2 -17.0 -202.0 -66.7 567.240 0.0 945.1 -24.0 -9.0 -221.1 -74.7 616.4

IRR 3.2%NPV -617.4

5-9

(2) FIRR in Case-1

・Though Government has funded 30% of project cost as Viability Gap Funding, in case of

borrowing project fund from commercial banks, FIRR resulted in 9.4 %（<12.0%）and show it in

poor financially.

・Construction cost of Hong Ha Bridge is so expensive that it has given a great impact to viability

of the project.

・Interest burden is heavy especially within 10 years after operation, which is higher than toll

income. It will also have cash-flow problem since deficit on single year will continue 11 years after

operation.

FIRR : 9.4%

NPV : -160.（mil USD）

Turned into profit in single year : 2027（12 years after operation）

Turned into profit (accumulated) : 2034（19 years after operation）

Sensibility Analysis for Fluctuation of Traffic Amounts

Traffic Amounts

－20% -10% 0% ＋10% ＋20%

FIRR 7.4% 8.5% 9.4% 10.3% 11.2

NPV(mil USD) -265.2 -212.4 -160.0 -108.1 -56.4

Financing Scheme

Terms of repayment


Period：35 years

Method of payment：equal principle method


Gov. Fund (VGF)：30％ Private Investors：70％

Bank loan: 70% Equity

Toll

income

subordinate

Interest rate 12..0 %

5-10

Table 5-10 Table 12 FIRR,Cash Flow in Case-1

Year Investment Return MaintenancePaid Interest Tax Repayment Cash Flow 1 -205.2 0.0 0.0 0.0 0.0 0.0 -205.22 0.0 0.0 0.0 0.0 0.0 0.0 0.03 0.0 0.0 0.0 0.0 0.0 0.0 0.04 0.0 0.0 0.0 -14.4 0.0 0.0 -14.45 0.0 0.0 0.0 -18.3 0.0 0.0 -18.36 0.0 27.6 -1.8 -66.5 0.0 -1.1 -41.77 0.0 32.6 -1.9 -71.5 0.0 -1.2 -42.08 0.0 38.2 -2.0 -76.5 0.0 -1.4 -41.89 0.0 44.4 -2.2 -81.4 0.0 -1.6 -40.7

10 0.0 51.5 -2.4 -86.0 0.0 -1.7 -38.611 0.0 59.7 -2.6 -90.2 0.0 -2.0 -35.012 0.0 69.0 -2.8 -93.8 0.0 -2.2 -29.813 0.0 79.3 -3.0 -96.5 0.0 -2.5 -22.714 0.0 90.9 -3.2 -98.2 0.0 -2.7 -13.315 0.0 103.8 -3.5 -98.4 0.0 -3.1 -1.316 0.0 119.5 -3.8 -98.1 0.0 -14.4 3.217 0.0 137.0 -4.1 -96.3 -4.3 -28.9 3.518 0.0 156.6 -4.4 -92.9 -9.9 -45.3 4.019 0.0 178.4 -4.8 -87.4 -16.7 -65.8 3.720 0.0 202.8 -5.1 -79.5 -24.6 -88.4 5.021 0.0 219.0 -5.6 -68.9 -31.2 -109.1 4.222 0.0 236.5 -6.0 -55.8 -38.8 -40.8 95.123 0.0 255.4 -6.5 -50.9 -44.6 -7.6 145.824 0.0 275.9 -7.0 -50.0 -49.8 -8.5 160.525 0.0 297.9 -7.6 -49.0 -55.5 -9.6 176.426 0.0 321.8 -8.2 -47.9 -61.6 -10.7 193.527 0.0 347.5 -8.8 -46.6 -68.1 -12.0 212.028 0.0 375.3 -9.5 -45.1 -75.3 -13.4 232.029 0.0 405.3 -10.3 -43.5 -83.0 -15.0 253.530 0.0 437.8 -11.1 -41.7 -91.3 -16.8 276.831 0.0 472.8 -12.0 -39.7 -100.4 -18.9 301.832 0.0 510.6 -13.0 -37.4 -110.2 -21.1 328.933 0.0 551.5 -14.0 -34.9 -120.8 -23.7 358.234 0.0 595.6 -15.1 -32.1 -132.2 -26.5 389.735 0.0 643.2 -16.3 -28.9 -144.6 -29.7 423.736 0.0 694.7 -17.6 -25.3 -158.0 -33.2 460.537 0.0 750.3 -19.0 -21.3 -172.6 -37.2 500.138 0.0 810.3 -20.6 -16.9 -188.3 -41.7 542.839 0.0 875.1 -22.2 -11.9 -205.4 -46.7 589.040 0.0 945.1 -24.0 -6.3 -223.8 -52.3 638.7

IRR 9.4%NPV -160.0

5-11

(3) FIRR in Case-2

When borrowing project fund from public loan with lower interest rate, FIRR has resulted in

13.2 %（＞12.0%）. It has been considerably improved financially. And after 5 years operation, it

has turned into profit in single year. Free cash flow has become plus after 1year operation, so case-2

has been found to be feasible in PPP scheme.But as equity has been supposed to be 30%, and

accumulated loss has diminished after 13 years operation,

So case-2 is not so attractive to Japanese private sector.

FIRR: 13.2%

NPV: 59.6（mil USD）

Turned into profit in single year : 2020（after 5 years operation）

Turned into profit (accumulated): 2022（after 7 years operation）

○ Sensibility Analysis for Fluctuation of Traffic Amounts Traffic Amounts

－20% -10% 0% ＋10% ＋20%

FIRR 11.4% 12.3% 13.2% 14.0% 14.8%

NPV(mil USD) -29.4 15.3 59.6 103.9 147.7

Financing Scheme

rms of repayment of JICA Oversees Investment

Interest：3.5 %

Period：20 years (grace period: 10 years)

Terms of repayment：Equal principal payment

Terms of repayment of 2STEP loan

Interest：6.0 %／year (assumed)

Period：10 years （grace period ：3 years）(assumed)



Gov. Fund (VGF)：30％ Private Sector：70％

2STEP Loan JICA’s Overseas Investment: 40%

Equity

Toll Income

subordinate

Interest Rate: 6.0%

Period:10 years, Grace

Interest Rate:3.5%

Period: 20 years

5-12

Table 5-11 FIRR, Cash Flow in Case-2

Year Investment Return MaintenancePaid Interest Tax Repayment Cash Flow1 -205.2 0.0 0.0 0.0 0.0 0.0 -205.22 0.0 0.0 0.0 0.0 0.0 0.0 0.03 0.0 0.0 0.0 0.0 0.0 0.0 0.04 0.0 0.0 0.0 -14.4 0.0 0.0 -14.45 0.0 0.0 0.0 -14.4 0.0 0.0 -14.46 0.0 27.6 -1.8 -25.5 0.0 -1.7 -1.37 0.0 32.6 -1.9 -25.3 0.0 -1.9 3.58 0.0 38.2 -2.0 -25.1 0.0 -2.1 8.99 0.0 44.4 -2.2 -23.6 0.0 -22.9 -4.2

10 0.0 51.5 -2.4 -22.0 -1.1 -23.2 2.811 0.0 59.7 -2.6 -20.5 -3.5 -23.5 9.712 0.0 69.0 -2.8 -18.9 -6.1 -23.9 17.313 0.0 79.3 -3.0 -17.3 -9.1 -24.3 25.714 0.0 90.9 -3.2 -15.6 -12.3 -24.8 35.015 0.0 103.8 -3.5 -13.8 -15.9 -25.3 45.316 0.0 119.5 -3.8 -11.6 -20.3 -34.2 49.617 0.0 137.0 -4.1 -9.8 -25.1 -34.2 63.818 0.0 156.6 -4.4 -8.1 -30.3 -34.2 79.519 0.0 178.4 -4.8 -7.7 -35.8 -13.7 116.520 0.0 202.8 -5.1 -7.2 -41.9 -13.7 134.921 0.0 219.0 -5.6 -6.7 -46.0 -13.7 147.122 0.0 236.5 -6.0 -6.2 -50.4 -13.7 160.223 0.0 255.4 -6.5 -5.7 -55.1 -13.7 174.424 0.0 275.9 -7.0 -5.3 -60.2 -13.7 189.725 0.0 297.9 -7.6 -4.8 -65.7 -13.7 206.226 0.0 321.8 -8.2 -4.3 -71.6 -13.7 224.027 0.0 347.5 -8.8 -3.8 -78.0 -13.7 243.228 0.0 375.3 -9.5 -3.4 -84.9 -13.7 263.929 0.0 405.3 -10.3 -2.9 -92.3 -13.7 286.230 0.0 437.8 -11.1 -2.4 -100.4 -13.7 310.231 0.0 472.8 -12.0 -1.9 -109.0 -13.7 336.232 0.0 510.6 -13.0 -1.4 -118.4 -13.7 364.233 0.0 551.5 -14.0 -1.0 -128.4 -13.7 394.434 0.0 595.6 -15.1 -0.5 -139.3 -13.7 427.035 0.0 643.2 -16.3 0.0 -151.0 -13.7 462.2

IRR 13.2%NPV 59.6

5-13

(4) FIRR in Case-3

As Government has funded 50% of project cost as VGF exceptionally, private sector has funded 10% equity and the rest of the project cost has been funded by public loan with lower interest rate, FIRR has resulted in 23.1%(>12.0%) and it has been improved remarkably. In Case-3, earnings and expenditure has turned into profit after one year operation. And this case

has been found to be very attractive for private sector.

FIRR: 22.5 %

NPV: 257.4（mil USD）

Turned into profit in single year: 2017（after 2 year Operation）

Turned into profit (accumulated): 2020（after 5 years Operation）


Traffic Amounts

－20% -10% 0% ＋10% ＋20%

FIRR 19.6% 21.1% 22.5% 23.8% 25.0%

NPV(mil USD) 171.0 214.4 257.4 300.4 343.0

Financing Scheme

Terms of repayment of JICA Oversees Investment

Interest：3.5 %








Gov. Fund (VGF)：50％ Private Investors：50％

2STEP Loan

40％ JICA’s Overseas

Investment: 50%

Toll Income

subordinate

Interest Rate :6.0%

Period 10 years::

Interest Rate:3.5%

period: 20 years

Equity

5-14


Year Investment Return MaintenancePaid Interest Tax Repayment Cash Flow 1 -48.9 0.0 0.0 0.0 0.0 0.0 -48.92 0.0 0.0 0.0 0.0 0.0 0.0 0.03 0.0 0.0 0.0 0.0 0.0 0.0 0.04 0.0 0.0 0.0 -13.2 0.0 0.0 -13.25 0.0 0.0 0.0 -13.2 0.0 0.0 -13.26 0.0 27.6 -1.8 -12.5 0.0 -3.6 9.77 0.0 32.6 -1.9 -12.1 -0.6 -4.1 14.08 0.0 38.2 -2.0 -11.6 -2.1 -4.5 17.99 0.0 44.4 -2.2 -10.8 -3.8 -24.6 3.0

10 0.0 51.5 -2.4 -9.9 -5.7 -25.2 8.311 0.0 59.7 -2.6 -8.9 -8.0 -19.5 20.712 0.0 69.0 -2.8 -8.6 -10.3 -19.5 27.713 0.0 79.3 -3.0 -8.3 -12.9 -19.5 35.514 0.0 90.9 -3.2 -8.0 -15.8 -19.5 44.215 0.0 103.8 -3.5 -7.7 -19.1 -19.5 53.916 0.0 119.5 -3.8 -7.1 -23.1 -29.3 56.217 0.0 137.0 -4.1 -6.4 -27.5 -29.3 69.618 0.0 156.6 -4.4 -5.8 -32.5 -29.3 84.519 0.0 178.4 -4.8 -5.5 -38.0 -9.8 120.420 0.0 202.8 -5.1 -5.1 -44.1 -9.8 138.721 0.0 219.0 -5.6 -4.8 -48.1 -9.8 150.822 0.0 236.5 -6.0 -4.4 -52.4 -9.8 163.823 0.0 255.4 -6.5 -4.1 -57.1 -9.8 177.924 0.0 275.9 -7.0 -3.8 -62.2 -9.8 193.125 0.0 297.9 -7.6 -3.4 -67.7 -9.8 209.526 0.0 321.8 -8.2 -3.1 -73.6 -9.8 227.227 0.0 347.5 -8.8 -2.7 -79.9 -9.8 246.328 0.0 375.3 -9.5 -2.4 -86.8 -9.8 266.829 0.0 405.3 -10.3 -2.1 -94.2 -9.8 289.130 0.0 437.8 -11.1 -1.7 -102.2 -9.8 313.031 0.0 472.8 -12.0 -1.4 -110.8 -9.8 338.932 0.0 510.6 -13.0 -1.0 -120.1 -9.8 366.833 0.0 551.5 -14.0 -0.7 -130.1 -9.8 396.934 0.0 595.6 -15.1 -0.3 -141.0 -9.8 429.435 0.0 643.2 -16.3 0.0 -152.7 -9.8 464.5

IRR 22.5%NPV 257.4

5-15

（5） FIRR in Case-4

In the Case-4, package of the project has been changed to the section from Phuc Yen –Phung

（20km）including Hong Ha Bridge and excluding the section from Trung Giat to Phuc Yen

(17km) in order to improve FIRR. But toll income has been appropriated to the project, because

the section from Trung Giat to Phuc Yen (17km) would be built under BT scheme by another

investor. This change of scheme has affected FIRR in favor , FIRR has resulted in 13.9.0%（＜

12.0%）.

FIRR 13.9.0%

NPV 85.6（mil USD）

Turned into profit in single year : 2020（after 5 years operation）

Turned into profit (accumulated): 2028（after 13 years operation）


Traffic Amounts

－20% -10% 0% ＋10% ＋20%

FIRR 11.9% 13.0% 13.9% 14.8% 15.6%

NPV(mil USD) -3.5 41.2 85.6 129.6 173.4

Financing Scheme


Interest：3.5 %








Gov. Fund (VGF)：30％ Private Sector：70％

2STEP

Loan 40％ JICA’S Investment

Toll Income

Subordinated

Interest Rate: 6..0%

Period:: 10 years

Interest Rate:3.5%

Period : 20years

Equity

Other Package

5-16


Year Investment Return MaintenancePaid Interest Tax Repayment Cash Flow 1 -175.5 0.0 0.0 0.0 0.0 0.0 -175.52 0.0 0.0 0.0 0.0 0.0 0.0 0.03 0.0 0.0 0.0 0.0 0.0 0.0 0.04 0.0 0.0 0.0 -12.3 0.0 0.0 -12.35 0.0 0.0 0.0 -15.6 0.0 0.0 -15.66 0.0 27.6 -1.8 -23.0 0.0 0.0 2.87 0.0 32.6 -1.9 -23.6 0.0 0.0 7.08 0.0 38.2 -2.0 -24.0 0.0 0.0 12.19 0.0 44.4 -2.2 -25.1 0.0 -17.6 -0.4

10 0.0 51.5 -2.4 -25.7 -1.0 -17.6 4.811 0.0 59.7 -2.6 -25.9 -2.9 -17.6 10.812 0.0 69.0 -2.8 -25.2 -5.4 -17.6 18.113 0.0 79.3 -3.0 -24.1 -8.2 -20.6 23.514 0.0 90.9 -3.2 -22.7 -11.3 -27.6 26.015 0.0 103.8 -3.5 -20.5 -15.1 -34.6 30.216 0.0 119.5 -3.8 -17.0 -19.8 -44.3 34.617 0.0 137.0 -4.1 -13.7 -24.9 -54.3 40.018 0.0 156.6 -4.4 -9.2 -30.9 -48.3 63.819 0.0 178.4 -4.8 -6.6 -36.9 -11.7 118.520 0.0 202.8 -5.1 -6.1 -43.0 -11.7 136.821 0.0 219.0 -5.6 -5.7 -47.0 -11.7 149.022 0.0 236.5 -6.0 -5.3 -51.4 -11.7 162.123 0.0 255.4 -6.5 -4.9 -56.1 -11.7 176.224 0.0 275.9 -7.0 -4.5 -61.2 -11.7 191.425 0.0 297.9 -7.6 -4.1 -66.7 -11.7 207.926 0.0 321.8 -8.2 -3.7 -72.6 -11.7 225.627 0.0 347.5 -8.8 -3.3 -79.0 -11.7 244.728 0.0 375.3 -9.5 -2.9 -85.9 -11.7 265.429 0.0 405.3 -10.3 -2.5 -93.3 -11.7 287.630 0.0 437.8 -11.1 -2.0 -101.3 -11.7 311.631 0.0 472.8 -12.0 -1.6 -109.9 -11.7 337.532 0.0 510.6 -13.0 -1.2 -119.2 -11.7 365.533 0.0 551.5 -14.0 -0.8 -129.3 -11.7 395.734 0.0 595.6 -15.1 -0.4 -140.1 -11.7 428.235 0.0 643.2 -16.3 0.0 -151.8 -11.7 463.4

IRR 13.9%NPV 85.6

5-17

(6) FIRR in Case-5

In the Case-5, in order to reduce project cost and improve the FIRR of private sector, construction

of Hong Ha Bridge would be responsible for Government utilizing JICA’s Yen Loan. And private

sector would be responsible for construction the rest of the section of 32 km and operation &

maintenance the section of 37 km. Even if when private sector would borrow project cost from

commercial banks , FIRR is considerably high , so this scheme has been found to be feasible as a

PPP scheme.If it will be possible to separate construction of the Hong Ha Bridge from PPP scheme,

the RR4 (north west part ) construction project would be attractive as BOT or BT scheme for

private sector in Vietnam and Japan .

FIRR: 14.6%

NPV: 126.7 mil USD

Turned into profit in single year: 2022（ after 7 years operation）

Turned into profit (accumulated) : 2028 （after 13 years operation）


Traffic Amounts

－20% -10% 0% ＋10% ＋20%

FIRR 12.6 13.7 14.6 15.5 16.4

NPV(mil USD) 27.4 77.2 126.7 176.0 224.9

Finance Scheme

Terms of Repayment in ODA

Interest Rate：0.2 %／year

Period：40 years（Grace Period：10years）

Method of Repayment: Equal Principal Payment

Terms of Repayment


Period：20years

Method of Repayment: Equal Principal Payment

Construction S/VD/DO&M

ODA

Bank Loan:: 70% Equity

Toll

Income

Subordinated

Interest Rate 12 % Interest Rate: 0.2%

Hong Ha Bridge The other Section

Construction

Private Sector: 100%

Whole

Private Sector

D/D S/V

5-18


Year Investment Return MaintenanceRepayed Interest Tax Repayment Cash Flow1 -128.7 0.0 0.0 0.0 0.0 0.0 -128.72 0.0 0.0 0.0 0.0 0.0 0.0 0.03 0.0 0.0 0.0 0.0 0.0 0.0 0.04 0.0 0.0 0.0 -9.0 0.0 0.0 -9.05 0.0 0.0 0.0 -11.4 0.0 0.0 -11.46 0.0 27.6 -1.8 -40.7 0.0 -4.2 -19.07 0.0 32.6 -1.9 -42.3 0.0 -4.7 -16.28 0.0 38.2 -2.0 -43.1 0.0 -5.2 -12.29 0.0 44.4 -2.2 -43.4 0.0 -5.9 -7.0

10 0.0 51.5 -2.4 -42.6 0.0 -6.6 -0.111 0.0 59.7 -2.6 -41.9 -0.8 -14.3 0.212 0.0 69.0 -2.8 -40.1 -3.4 -22.2 0.413 0.0 79.3 -3.0 -37.5 -6.6 -31.2 1.014 0.0 90.9 -3.2 -33.7 -10.4 -42.3 1.215 0.0 103.8 -3.5 -28.6 -14.8 -11.6 45.216 0.0 119.5 -3.8 -27.3 -19.0 -12.9 56.417 0.0 137.0 -4.1 -25.7 -23.7 -14.5 69.018 0.0 156.6 -4.4 -24.0 -29.0 -16.2 83.019 0.0 178.4 -4.8 -22.0 -34.8 -18.2 98.620 0.0 202.8 -5.1 -19.8 -41.4 -20.4 116.021 0.0 219.0 -5.6 -17.4 -45.9 -22.8 127.322 0.0 236.5 -6.0 -14.7 -50.9 -25.6 139.423 0.0 255.4 -6.5 -11.6 -56.3 -28.6 152.524 0.0 275.9 -7.0 -8.2 -62.1 -32.1 166.525 0.0 297.9 -7.6 -4.3 -68.5 -35.9 181.726 0.0 321.8 -8.2 0.0 -75.3 0.0 238.327 0.0 347.5 -8.8 0.0 -81.6 0.0 257.128 0.0 375.3 -9.5 0.0 -88.4 0.0 277.429 0.0 405.3 -10.3 0.0 -95.7 0.0 299.430 0.0 437.8 -11.1 0.0 -103.6 0.0 323.131 0.0 472.8 -12.0 0.0 -112.1 0.0 348.732 0.0 510.6 -13.0 0.0 -121.3 0.0 376.333 0.0 551.5 -14.0 0.0 -131.3 0.0 406.234 0.0 595.6 -15.1 0.0 -142.1 0.0 438.435 0.0 643.2 -16.3 0.0 -153.7 0.0 473.236 0.0 694.7 -17.6 0.0 -166.2 0.0 510.937 0.0 750.3 -19.0 0.0 -179.7 0.0 551.538 0.0 810.3 -20.6 0.0 -194.4 0.0 595.439 0.0 875.1 -22.2 0.0 -210.2 0.0 642.740 0.0 945.1 -24.0 0.0 -227.2 0.0 693.9

IRR 14.6%NPV 126.7

5-19

5.2.4 Result of calculation of Economical Internal Rate of Return（EIRR）

（1）Assumption on Calculating Economical Internal Rate of Return (EIRR)

Economical analysis aims to examine effects of the project in the aspect of socio-economical

condition, and to estimate economical relevance of the project. We have calculated EIRR, Net

Present Value (NPV) and B/C ration as indexes of the estimation.

Calculation Period : 35 years

Reduction Rate :12 %

Inflation Rate：8 %

Figure 5-3 Comparing Time and Distance with and without RR4 (north western section)

Hong Ha bridge

Phung Phuc Yen

Trung Gia

Noi Bai

Ai

NH-32

NH-18

NH-3

5-20

（2） Measurement of the Benefit through Traveling time saving

Benefit through traveling time saving has been calculated as follows;

Saved travel time = Ttraveling time from origin to destination1.（before the road construction

and improvement has not been completed )－Traveling time from origin to

detination2. (after the road construction and improvement has been completed)

Economical benefit per Vehicle = Saved travel time ＊ Unit vehicle’s cost /hr.

Unit vehicle’s travel time cost per hour has been based on HOUTRANS “The Study on Urban

Transport Master Plan and Feasibility Study in Ho Chi Minh Metropolitan Area” (JICA 2004) and

revised on the nominal growing rate of GDP and supposed inflation rate in the future.

Table 5-15 Unit vehicle’s travel time cost per hour（USD/hour）

2002 2010 2015 2020

0.57 1.29 1.74 2.36 Vehicle

(per person) 1.76 2.59 3.81

1.12 2.53 3.41 4.63 Vehicle

( per car) 3.46 5.08 7.47

Upper：Values Based on HOUTRANS

Lower：Revised value shown upper by the nominal growing rate of GDP and supposed

inflation rate in the future.

5-21

（3） Measurement of benefit through reduction of vehicle’s operating cost

Unit vehicle operating cost (USD/car/1000km) in Table 5-15 is based on “The Study on

Southern Inter-Regional Highway including Binh Khanh and Phuc Khanh Bridge, in the Socialist

Republic of Vietnam”.

Table 5-16 Unit vehicle operating cost (USD/car/1000km)

Speed car(km/h) fixed appreciating

portionFinancial 5 575.5 32.7 542.9Cost 10 349.0 28.4 320.6

20 228.8 24.4 204.330 186.3 23.9 162.440 161.8 21.6 140.250 151.4 20.3 131.160 152.9 22.3 130.670 158.3 24.4 133.980 166.3 26.3 139.990 177.5 29.0 148.5

Economic 5 279.9 16.2 263.8Cost 10 170.1 14.1 156.0

20 111.4 12.1 99.330 91.1 11.8 79.240 79.3 10.7 68.650 74.6 10.0 64.560 75.4 11.0 64.470 72.0 12.1 60.080 81.2 13.0 68.290 86.6 14.3 72.3

5-22

（4）Result of the calculation EIRR and B/C

The results of calculation EIRR and B/C are shown in the Table 5-17, it has demonstrated an

economical effectiveness of the project. And it has been certified that the expressway of

RR4(North western section) is very useful as social infrastructure after completion of the project

period.

Table 5-17 Result of calculation EIRR, B/C and NPV

（Unit：million USD) Year Reduction Inflation Yearly Saving Time BenefitRunning cost saving Benefit Total Benefit Construction, O & M Cost Yearly Benefit

Rate Rate Simple Value Present Value Simple Value Present Value Simple Value Present Value Simple Value Present Value Simple Value Present Value

2010 100.0% 1.00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.02011 89.3% 1.08 0.0 0.0 0.0 0.0 0.0 0.0 35.0 31.3 -35.0 -31.32012 79.7% 1.17 0.0 0.0 0.0 0.0 0.0 0.0 103.0 82.1 -103.0 -82.12013 71.2% 1.26 0.0 0.0 0.0 0.0 0.0 0.0 209.0 148.8 -209.0 -148.82014 63.6% 1.36 0.0 0.0 0.0 0.0 0.0 0.0 315.0 200.2 -315.0 -200.22015 56.7% 1.47 0.0 0.0 0.0 0.0 0.0 0.0 315.0 178.7 -315.0 -178.72016 50.7% 1.59 10.1 5.1 6.2 3.1 16.3 8.3 1.8 0.9 14.5 7.42017 45.2% 1.71 21.8 9.9 13.4 6.1 35.2 15.9 1.9 0.9 33.3 15.12018 40.4% 1.85 35.3 14.3 21.7 8.8 57.0 23.0 2.0 0.8 54.9 22.22019 36.1% 2.00 50.9 18.3 31.2 11.3 82.1 29.6 2.2 0.8 79.9 28.82020 32.2% 2.16 68.7 22.1 42.1 13.6 110.8 35.7 2.4 0.8 108.4 34.92021 28.7% 2.33 79.6 22.9 48.8 14.0 128.5 36.9 2.6 0.7 125.9 36.22022 25.7% 2.52 92.0 23.6 56.3 14.5 148.3 38.1 2.8 0.7 145.5 37.42023 22.9% 2.72 105.7 24.2 64.7 14.8 170.5 39.1 3.0 0.7 167.5 38.42024 20.5% 2.94 121.1 24.8 74.1 15.2 195.2 39.9 3.2 0.7 192.0 39.32025 18.3% 3.17 138.3 25.3 84.6 15.5 222.9 40.7 3.5 0.6 219.4 40.12026 16.3% 3.43 159.2 26.0 97.4 15.9 256.5 41.8 3.8 0.6 252.7 41.22027 14.6% 3.70 182.5 26.6 111.6 16.3 294.1 42.8 4.1 0.6 290.0 42.22028 13.0% 4.00 208.6 27.1 127.5 16.6 336.1 43.7 4.4 0.6 331.7 43.12029 11.6% 4.32 237.7 27.6 145.2 16.9 382.9 44.5 4.8 0.6 378.1 43.92030 10.4% 4.66 270.0 28.0 165.0 17.1 435.0 45.1 5.1 0.5 429.9 44.62031 9.3% 5.03 291.7 27.0 178.2 16.5 469.8 43.5 5.6 0.5 464.3 43.02032 8.3% 5.44 315.0 26.0 192.4 15.9 507.4 41.9 6.0 0.5 501.4 41.42033 7.4% 5.87 340.2 25.1 207.8 15.3 548.0 40.4 6.5 0.5 541.5 40.02034 6.6% 6.34 367.4 24.2 224.5 14.8 591.9 39.0 7.0 0.5 584.9 38.52035 5.9% 6.85 396.8 23.3 242.4 14.3 639.2 37.6 7.6 0.4 631.7 37.22036 5.3% 7.40 428.5 22.5 261.8 13.8 690.3 36.3 8.2 0.4 682.2 35.82037 4.7% 7.99 462.8 21.7 282.8 13.3 745.6 35.0 8.8 0.4 736.8 34.52038 4.2% 8.63 499.8 20.9 305.4 12.8 805.2 33.7 9.5 0.4 795.7 33.32039 3.7% 9.32 539.8 20.2 329.8 12.3 869.6 32.5 10.3 0.4 859.4 32.12040 3.3% 10.06 583.0 19.5 356.2 11.9 939.2 31.3 11.1 0.4 928.1 31.02041 3.0% 10.87 629.7 18.8 384.7 11.5 1,014.3 30.2 12.0 0.4 1,002.3 29.92042 2.7% 11.74 680.0 18.1 415.5 11.1 1,095.5 29.1 13.0 0.3 1,082.5 28.82043 2.4% 12.68 734.4 17.4 448.7 10.7 1,183.1 28.1 14.0 0.3 1,169.1 27.82044 2.1% 13.69 793.2 16.8 484.6 10.3 1,277.8 27.1 15.1 0.3 1,262.7 26.82045 1.9% 14.79 856.6 16.2 523.4 9.9 1,380.0 26.1 16.3 0.3 1,363.7 25.82046 1.7% 15.97 925.2 15.6 565.2 9.6 1,490.4 25.2 17.6 0.3 1,472.8 24.92047 1.5% 17.25 999.2 15.1 610.5 9.2 1,609.6 24.3 19.0 0.3 1,590.6 24.02048 1.3% 18.63 1,079.1 14.5 659.3 8.9 1,738.4 23.4 20.6 0.3 1,717.9 23.22049 1.2% 20.12 1,165.5 14.0 712.0 8.6 1,877.5 22.6 22.2 0.3 1,855.3 22.32050 1.1% 21.72 1,258.7 13.5 769.0 8.3 2,027.7 21.8 24.0 0.3 2,003.7 21.5

計 15,128.0 716.3 9,244.1 438.1 24,372.0 1,154.4 1,278.9 658.9 23,093.1 495.5

EIRR 16.4%B/C 1.75NPV 493.6

6-1

Chapter 6 Project Implementation Schedule

The MOT submitted a report on the section covered by this study to the Prime Minister’s Office

at the end of November and is awaiting prime ministerial approval. When the Hanoi People’s

Committee starts the project under a PPP project scheme after obtaining prime ministerial approval,

the schedule shown in Table 6-1 is conceivable. Table 6-1 shows the flow from selection of

investors to land acquisition, via the conclusion of concession contracts and detailed design, while

Table 6-2 shows the flow from detailed design and land acquisition to completion of the

construction.

Meanwhile, Hong Ha Bridge construction using a Yen loan from JICA or another agency will be

necessary in addition to the flows shown in Tables 6-1 and 6-2, if Hong Ha Bridge is constructed

using ODA financing such as funds from JICA while the remaining road sections covered by the

study are constructed by PPP contractors and these entities operate and maintain the bridge and road

sections as a whole under a PPP scheme (namely, Case 5 scheme shown in Table 5-6 in Chapter 5).

Table 6-3 shows the flow of the Hong Ha Bridge construction project using a Yen loan. In this

case, Hong Ha Bridge construction using a Yen loan and road construction under a PPP scheme

should hopefully be completed around the same time because PPP operators will have no toll income

and suffer financial loss if the completion of Hong Ha Bridge is delayed.

6-2

Table 6-1 Assumed Schedule for the Proposed PPP Project

2011 2012 Items 1 2 3 4 5 6 7 8 9 10 1112

1 2 3 4 5 6 Remarks

Submission of the PPP project by the Hanoi Authority

MPI’s judgment Announcement of the PPP project

EOI and prequalification of the companies

International competitive bidding

Acquisition of priority negotiation rights and negotiations for contracts

Conclusion of concession contracts

Detailed design and land acquisition

Approx. 10 months

Table 6-2 Implementation Schedule for Construction, etc.

Items 1st year 2nd year 3rd year 4th year 5th and subsequent years

Detailed design Land acquisition

Construction Selection of contractor

Construction: 40 months

Operation and maintenance

In the case of a BOT project, in general, the private enterprise implementing the project (SPC)

operates and maintains the road, in addition to construction of the road, in the fifth and subsequent

years until it recovers the investment.

6-3

Table 6-3 Hong Ha Bridge Construction Schedule Using Yen Loan from JICA

Items

2011

2012

2013

2014

Pre FS

SAPROF

Dispatch of JBIC appraisal mission

Pledge

Loan Agreement

Selection of consultants

Detailed design

Support for bid tendering

Start of construction

Table 6-3 assumes the earliest schedule. Bridge construction is estimated to require

approximately 40 months from start to finish. Construction of Hong Ha Bridge is believed to be the

critical element in the entire PPP project processes including construction of the road section.

7-1

Chapter 7 Implementing Organization

7.1 Overview of Implementation Agency in Partner Country The Vietnamese government decided to develop Hanoi Ring Road No. 4 as a public-private partnership

(PPP) project based on the feasibility study conducted by MOT, and the Ministry delegated the authority to

implement the project to the People’s Committee of Hanoi City. Hanoi Authority for Planning and

Investment, Hanoi People’s Committee has developed master plans, including Ring Road No. 4, and given

its past administrative experience, it is considered to have sufficient ability to implement infrastructure

development projects. In terms of PPP, however, the Committee has experience only in such projects as

waterworks and is inexperienced in road construction projects. In the case of PPP projects, the procurement

of project funds and other operations are left to the special purpose company (SPC), but the People’s

Committee is also expected to take on various risks. In particular, success in the relocation of local

residents and other operations depends largely on the skills of the People’s Committee, and in this project,

its skills will be called into question in these areas.

The People’s Committee is also expected to play a leading role in obtaining the understanding of users

when determining the amounts of toll fees.

7-2

Figure 7-1 Organizational Structure of the Hanoi People’s Committee

Government

Hani People's Committee

Long Bien District

Thanh Xuan District

Cau Giay District

Tay Ho District

Hai Ba Trung District

Ba Dinh District

Dong Da District

Hoan Kiem District

Gia Lam District

Dong Anh District

Tu Liem District

Thanh Tri District

Soc Son District

Van Xuan District

Department of Industrial and Export Processing Zone Management

Department of Trade

Department of Labour - War Invalids and Social Affairs

Department of Transportation and Urban Public Works

Department of Agriculture & Rural Development

Department of Education and Training

Department of Tourism

Department of Police Hanoi City

Department of Justice

Department of Culture and Informationa

Department of Sports and Physical Training

Department of Industry

Hanoi Authority for Planning and Investment

Department of Foreign Relations

Department of Science and Technology

Department of Finance

Hanoi Supreme Court

Hanoi Department of Tax

Department of Public Health

Department of Resources, Environment and Land Management

Department of Planning and Architect

Department of Construction

Department of Internal Affairs

Department of Telecommunication

7-3

7.2 Organizational Structure for Project Implementation in

Partner Country The Hanoi People’s Committee will implement the Ring Road No. 4 (northwestern part)

project, which covers the sector from Trung Gia, Phuc Yen toPhung, but it is customary that a PPP project is implemented by a special purpose company (SPC) established by a single private enterprise or a group of private enterprises that is chosen by the People’s Committee through international competitive bidding or similar procedures and to which the right to implement it is transferred. The typical organizational structure for a PPP project is as shown below.

Figure 7-2 Organizational Structure for PPP Projects

Special purpose company (SPC)

(Financed by a single or several

private enterprises)

Construction

companies

O&M firms

Real estate

developers

Joint venture undertaking road

and bridge construction on

contract

Banks and other


Hanoi People’s Committee

InvestmentInvestments and loans

Investments, subsidies, and

service purchasing funds

Concession agreement

O&M firms

(Outsourcing agreements on fee

collection and maintenance)

8-1

Chapter 8 Technical Advantages of Japanese

Companies

8.1 Expected Forms of Participation by Japanese Companies This field survey is conducted for a JPY 88 billion PPP project, which includes the construction of

a 37-km expressway and its maintenance. Vietnam has practically no experience in the operation and

maintenance of expressways. As it is anticipated that the age of fully-fledged expressways will

arrive in the country in the future, private enterprises with experience in expressway operation and

maintenance utilizing advanced ITS technology are expected to participate in the project. At present,

Vietnam has not only this but also many other expressway construction projects, and for all these

projects, advanced traffic safety management measures can be taken and a wide range of toll fee

collection systems adopted. And making the most of ETC facilities that do not require cars to stop

for toll fee collection or fail to collect toll fees is one of the issues to be addressed in these projects.

The know-how accumulated by Japanese expressway companies through the operation and

maintenance of about 9,000-km high-standard arterial roads is expected to provide a standard for

solving these issues in Vietnam. In order to ensure that Japanese expressway companies and their

group companies fully demonstrate their know-how in operation and maintenance services, it is

desirable that they participate in the project as an entity that implements it. To that end, Japanese

companies should invest in the special purpose company (SPC) for the project and provide toll road

operation and maintenance services as part of the entity, and by doing so, they will be able to

establish a safe and secure expressway operation and maintenance system based on Japanese

standards in Vietnam. Expected specific forms of participation by Japanese companies in operation

and maintenance as well as construction work are shown in the table below.

8-2

Table 8-1 Participation by Japanese Companies in Operation and Maintenance

Participating

companies

Form of participation Roles, etc. Remarks

Expressway companies Investment in SPC Acceptance of orders

for operation and

maintenance services

Joint ventures with


Banks and other


Investment in SPC Sales of ETC cards

Electric manufacturers,

etc.

Selling facilities and

instruments for

operating expressway

in Vietnam

- Sales of ETC system

equipment (such as

on-board devices)

- Sales of traffic

guidance and

information systems

Table 8-2 Participation by Japanese Companies in Road and Bridge Construction

Participating

companies

Form of participation Roles, etc. Remarks

General contractors Investment in SPC Acceptance of orders

for bridge construction

Joint ventures with


Consulting firms Order from detailed

design and supervising

of construction works,

assistance for

implementation of the

project

Detailed design of

bridges and other

structures as well as

supervision of

construction work

Steel makers, etc. Sales of steel pipe

sheets, cables, and

weatherproof steel

materials

8-3

8.2 The advantages afforded by Japanese technologies

The route covered by this project extends a total of 37 kilometers and will cost 1.1 billion USD to

construct. The project scope covers the construction of a cable-stayed bridges with center span

length of 370m or an extradosed bridge which will have 6 continuous span with length of 210m, and

for which it is anticipated that Japanese materials, design and construction technologies will be

utilized.

The site at which this bridge to be constructed is located in the Red River Delta, and there is layer

of soft soil ground with an SPT N-value approaching zero that extends to a considerable depth. The

construction of the substructures is thus expected to be difficult and demanding.

The Red river to be spanned by this bridge is about 5,000m in width. It will therefore be necessary

to ensure that river traffic is subject to minimal disruption during construction.

In recent years, the costs involved in the maintenance of bridge superstructures have begun to be

assessed in terms of life cycle costs, and the weather-resistant steel that is being employed in many

steel bridges in Japan, is considered to represent one example of this trend.

In consideration of all these factors, it is anticipated that the following Japanese technologies will be

employed in respect of the construction methods, materials and equipment used in the construction. ・ The design, construction and wind tunnel testing of cable-stayed bridges

・ Substructure construction techniques which minimize obstruction to ship navigation: design

and construction of steel pipe sheet pile foundation

・ Weather-resistant steel

・ Steel pipe sheet pile

・ Cable-stayed bridge cables

・ Expansion joints, bearings and other ancillary parts

・ Maintenance facilities, including inspection travelers, etc.

・ Various construction machinery

Simple explanations of the above are provided below.

(1) The design, construction and wind tunnel testing of cable-stayed bridges

Cable-stayed bridge is a statistically indeterminate structure and the design solution lies in

achieving a balance between girders, towers and cables. Japan has a proven track record in the

construction of cable-stayed bridges and is capable of creating the most rational and

aesthetically-pleasing designs.

8-4

Moreover, it is recommended that the balancing cantilever erection method be employed in order

to maintain reasonable construction duration and costs. However, since this necessitates step-by-step

analysis to confirm the safety of girders, towers and cables, any discrepancy in analysis and site

conditions could jeopardize both safety of construction works and the structure per se. By

introducing Japan’s proven record in the use of the balancing cantilever erection method, it will be

possible to complete the entire process safely, from analysis through construction.

In addition, wind tunnel testing is necessary to confirming the wind stability of the structure both

during and after construction, and Japan’s wealth of experience and achievements in this area will be

of benefit in the design and construction of the Hong Ha Bridge.

YOKOHAMA BAY Bridge (JAPAN) Span: 200 + 460 + 200 Tower: Steel

TSURUMI TSUBASA Bridge (JAPAN) Span: 255 + 510 + 255 TToowweerr:: SStteeeell

TATARA Bridge (JAPAN) Span: 270 + 890 + 320

TToowweerr:: CCoonnccrreettee GGiirrddeerr:: SStteeeell BBooxx ((CCeenntteerr))

SStteeeell ++ PPCC ((SSiiddee))

8-5

(2) Steel pipe sheet pile foundation engineering

More than 2,000 steel pipe sheet pile foundations have been built in Japan, and the techniques

employed make it possible to build these foundations in very deep waters or on soft soil ground

without the need for cofferdams, pneumatic caissons or other structure for underwater construction.

The design and construction techniques employed in this technology have been developed by five

Japanese steel manufacturers with grant funding provided by the Ministry of Construction,Japan and

it outranks the concrete caisson foundations formerly used in road and rail bridges in terms of

scheduling, costs and work safety.

A structural overview of the steel pipe sheet pile foundations is given in Figure 8-1.

Small-diameter steel pipes form a coupler arrangement on both sides of a circular steel pipe,

which is then filled with mortar to form highly rigid foundations. This will be the second time for the

technology to be employed on a Japanese project overseas, though the technology was used in

Vietnam in the construction of the foundations for the Nhat Tan Bridge.

Figure 8-1 Schematic view of steel pipe sheet pile foundation

8-6

The number of steel pipe sheet pile foundations built in Japan is given in Fig. 8.2.

Figure 8-2 Yearly Construction of Steel Pipe Sheet Pile Foundations

The application in Mihara Bridge in Hokkaido is shown in Figure 8.3 as an example of the use of

these foundations in a large-scale cable-stayed bridge.

Figure 8-3 Mihara Bridge

8-7

(3) Cable-stayed bridge cables

Prefabricated parallel wire strand cables are widely used in cable-stayed bridges in Japan. There

are several reasons for this, as follows. A polyethylene layer is formed using extrusion molding process thus ensuring the reliability

of cable waterproofing and durability, which are essential to maintenance.

The use of wire with a tensile strength of 180 Kgf/mm2 made it possible to reduce the

cross-sectional area of the cables, of which wire was used in the Akashi-Kaikyo Bridge and

Kurushima-Kaikyo Bridge.

Indent processing of the coated surface allows for the selection of cables that are capable of

withstanding rain-wind induced vibration, etc. Given that the Hong Ha Bridge will have a

center span of 370m, permanent vibration countermeasures for wind stability must be taken

into consideration and, given their proven record in Japan, it is therefore recommended that

the cables described above be used.

Figure 8-4 Prefabricated Parallel Wire Strand and Indented Surface Treatment

IInnddeenntt CCaabbllee iinn TTAATTAARRAA BBrriiddggee

8-8

(4) Steel pipe sheet pile

The concept of utilizing steel pipe sheet pile for deep-water revetment earth retaining work was

developed in Japan. A P-P joint which couples small-diameter steel pipes and filled with mortar to

improve the rigidity of the foundations was devised. Japan is the only country to have the product

specification for steel pipe sheet pile, and its JIS 5530 is becoming the standard in Japan. The steel

pipe sheet pile is long and must ultimately be amalgamated, and with its rigorous standards of

accuracy required, this product promises to deliver Japanese manufacturing expertise.

(5) Weather-resistant steel

Weather resistant steels have a unique property in that they use rust to prevent corrosion, and they

are now widely employed in numerous structures, including bridges. Moreover, there are numerous

examples of structures in Japan and overseas, in which this property has been harnessed to help

reduce maintenance costs.

In Japan, weathering resistant steels have proved particularly popular with local governments and

there are some prefectures in which the proportion of bridges using this steels approaches as much as

80%.

The development of weather-resistant steel bridges in Japan has some notable aspects. The

decision as to whether to apply weathering resistant steels was formerly based solely on air-borne

salt measurements, but a method for estimating corrosion depletion that factors in both wetness

duration and temperature, etc. has been developed and a simple site test procedure put forward.

Performing this simple site test at the planned construction sites for the two bridges will confirm the

applicability of weather resistant steel and allow for the life cycle costs (LCC) of the bridges to be

investigated as part of the detailed design. Since this site test was not undertaken in this Feasibility

Study, regular steel is used for cost estimation.

In technological terms, weather resistant steels comprise rolled steel for welded structures to

which cupper (Cu), nickel (Ni), chrome (Cr), and phosphorus (P) have been added. The first edition

of “JIS G3114 hot-rolled atmospheric corrosion resistant steels for welded structures” was

established in the Japan Industrial Standards, published 1968, and this classification being refined in

1983 to include paint-less weather resistant steel (SMA-W).

8-9

Figure 8-5 Trend of Weather Resistant Steel

0

30

60

90

120

150

S53 S55 S57 S59 S61 S63 H2 H4 H6 H8 H10 H12 H14

年度

鋼重

（千

ﾄﾝ）

0.0

5.0

10.0

15.0

20.0

25.0

鋼橋

に占

める

比率

（％

）鋼重（千ﾄﾝ）

全鋼橋に占める比率（%）

Photo 8.1 February 1982 (2 months after completion)

Photo. 8.2 January 1999 (17 years and 1 month after

completion)

Stee

l Wei

ght (

‘000

tons

)

Rat

io in

Ste

el B

ridge

s (%

)

1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002

Year

Steel Weight (‘000tons)

● Ratio in Steel Bridges

8-10

8.3 Measures Necessary to Enhance Competitiveness of

Japanese Companies 8.3.1 Systems to Subsidize Costs Required for Participation in International Competitive Bids

In order for Japanese companies to win an order for a PPP project, it is extremely advantageous to

participate in the entity that implements the project by investing in the project’s special purpose

company (SPC), which serves as the entity, if, for example, the project is carried out using a BOT

scheme. The reason is that this form of participation allows Japanese companies to participate in the

definition of specifications and the setting of prices actively. Therefore, in order to help them to win

an order for such a project, it is extremely important to encourage them to participate in the project

as a member of SPC first by investing in it.

The fact is, however, that in the past, Japanese construction companies have expanded into

overseas markets mainly through ODA-based yen-loan or grant-aid projects, and that such expansion

has been limited to relatively low-risk areas as when, based on general contracts, they won orders for

construction projects in Japan. In addition, Japanese expressway companies, which undertake the

operation and maintenance of almost all expressways in Japan, have no track record of operation and

maintenance in overseas countries because only several years have passed since they were

established through privatization. For this reason, they have to overcome considerably difficult

obstacles when participating in an overseas PPP road construction project that involves investing in

an SPC; placing orders for, supervising, and completing construction work within the framework of

unfamiliar local legal systems as an entity that implements it; and recovering the invested funds by

collecting toll fees.

In Vietnam, contractors will be chosen through international competitive bids in the future when

participating in PPP projects, and therefore, Japanese companies need incentives for participating in

such international competitive bids.

Survey expenses incurred when a Japanese company expresses its intention to participate in a PPP

road project in Vietnam and joins an international competitive bid are several to tens of times larger

than when it expresses its interest in an ordinary project to be implemented by contract and offers a

tender, and measures for covering such bidding expenses are needed to encourage Japanese

companies to join international competitive bids in Vietnam.

8-11

European and North American governments or their agencies have a system to pay expenses

incurred when private enterprises offer a bid for construction projects that require an extremely high

level of or highly specialized technology. The Vietnamese government is expected to establish such

a system to ensure the appropriate competitiveness of bidding and choose reliable private enterprises

as PPP contractors.

Currently, JICA conducts preliminary surveys for infrastructure projects each year, but it is

desirable that the Agency should carry out such surveys for a wider range of projects so that the

periods during which it conducts such surveys are linked to those during which partner countries

express their interest in international competitive bids and invite tenders for their projects.

8.3.2 Funds for Bidding Expense Subsidy System

Essentially, the Vietnamese government should nail down a budget for each of its PPP projects to

take measures for ensuring their fairness, transparency, and competitiveness, and publicly announce

such measures when inviting tenders for each of its PPP projects. Since it is difficult to expect the

Vietnamese government to take such measures actively under the current financial circumstances,

however, a system will be necessary in which, for instance, the Japanese government lends such

funds to its Vietnamese counterpart.

In PPP projects, there are cases in which a private enterprise that eventually enters into a

concession agreement with the government covers part of the expenses of other enterprises that lose

in the competitive bidding, but this method should be avoided because it may hinder fair

competition.

Another way to reduce the survey expenses of private enterprises rather than help with such

expenses is for competing private enterprises to cut down on survey expenses and lighten human

burdens by conducting surveys jointly and sharing their expenses if necessary data are not available.

8-12

8.4 Japanese Company’s Image in the Special Purpose

Company established in Vietnam

When Japanese company will participate in the project, an image for implementation system of the

project is shown in Fig. 8.6. It corresponds to the PPP scheme, of which has been referred to Case 5

and estimated better in the FIRR analysis. In the Case 5 , Vietnamese government will construct

Hong Ha Bridge with ODA loan, while PPP investor will construct expressway section with length

of 32km, and then PPP investor will operate and maintain whole section of expressway including

Hong Ha Bridge. Of course Government will lend Hong Ha Bridge with no charge to PPP investor

during business period. It would be referred to as “ PPP scheme combined ODA scheme”.

Figure 8.7 shows an image of project implementation system under PPP scheme as usual.

The image of project implementation system in Fig 8.6 and 8.7 has been planed based on the results

of the interview study for the Vietnamese officials MPI, MOT, Hanoi Authority for Planning and

Investment and officials in Vietnamese private companies such as Him Lam Corporation, BITEXCO

and VINACONEX. And it has been confirmed to be valid according to the law in Vietnam.

8-13

Figure 8-6 Project Implementation System in Case 5

Hong Ha Bridge Construction ( 5km) Yen Loan Project(STEP)

Road Construction under PPP Scheme （32km）

Vietnam HPC or MOT

HPC

SPC Japanese Share 51％（NEXCO Companies and , General Contractors ） Vietnamese Share 49％

Joint Venture of the Japanese Companies

JICA

ODA, Yen Loan (STEP)

Completed Hong Ha Bridge (L=5km)

Completed Expressway (L32km)

Japanese NEXCO Section 37kmExpressway O & M Orders from SPC

Bank Loan


Customers

Pay toll Services Expressway

Road Const. J.V. Toll Revenue

Contract O&M


Concession Contract

8-14

Figure 8-7 Project Implementation system under PPP scheme as usual

Established SPC Japanese Companies Share 51 ％Vietnamese panies Share 49%

MPI or MOT

HPC

Banks, Pubic Loan

from W.B,ADB and

JICA and Overseas

Hong Ha Bridge Const. JV (Japanese bridge makers and General Contractors)

Road Const. JV Vietnamese (General Contractors etc)

O & M Orders

Japanese NEXCO,etc.

Completed Hong Ha Bridge

Completed

Expressway

Supervision

Concession Contract

Const. Contract

Loan

Operation &

Maintenance

Contract orders

from SPC

Const. Contract

Expressway Services Pay Toll

Toll

Revenue

Japanese Companies:

General Contractors,

Bridge Fabricators,

NEXCO etc.,

Customers

9-1

Chapter 9 Financial Outlook

9.1 Examination on Funding Resource and Financing Plan

○ Prerequisites of the examination

・Prime Minister’s Decision No. 71/2010/QD-TTg dated November 9, 2010 provides for PPP pilot

projects.

・The principle of VGF is set as within 30% of the amount invested in the relevant project, but over

30% VGF may be possible depending on details of the project.

・VGF includes the right to use (acquire) land. The government (ministries and municipalities ruled

by the central government) will be in charge of negotiation with right holders.

・Proposed project includes construction of Hong Ha bridge, which require huge cost. VGF shall

be expected to cover 30 % of project cost in case of using PPP scheme.

・World Bank will provide financing to Vietnamese local companies in dollars as for road project by

PPP, according to interview with Vietnamese PPP operators.

○View on funding resources

・Use of low-interest public loans such as JICA Overseas Investment was assumed because loans

from commercial banks will not afford the project even if VGF is 30％ of the project cost.

・In an interview with a Vietnamese government agency, many officials expressed their views that it

may be difficult to construct Hong Ha Bridge under a PPP project scheme because of the huge

cost. The Vietnamese government hopes to use a Yen loan for Hong Ha Bridge and is examining

a plan assuming a Yen loan. (Case 5 in Chapter 5)

9-2

9.2 Feasibility of Financing

・It is expected that low-interest public loans will be applied to projects in Vietnam including the

road BOT project between Dau Giay and Phan Thiet. Therefore, this project will possibly use

such a loan.

・A method of reducing the government’s real financial burden and hedging risks of private

companies by a BT（Built Transfer）scheme is used for other sections of RR4. In this section

including Hong Ha Bridge, however, implementation only by a BT scheme will lead to

imbalance, so it will be necessary to secure the stability and safety of the Project by combining

schemes such as the “PPP+BT” scheme. Case 4 is examined in Chapter 5 because the

participation of Vietnamese enterprises will allow reduction of project risks and the financing

feasibility will increase by proposing a scheme that is more accessible for Vietnamese companies

showing high interest in the Project.

・It is necessary to clarify the exit strategy for startup (investment) by Japanese companies, etc.

Traffic volume and toll income are expected to increase substantially with the development of

Hanoi. Prospects for buyout after opening of the road will reduce obstacles for investment.

9-3

9.3 Analysis of Cash Flow

9.3.1 Precondition

・Calculation of the FIRR has been conducted after setting conditions based on indices as mentioned

in chapter 5.

discount rate 12.0%

inflation rate 8.0%

period 30 – 40 years

toll fee 5 cent/ km（900 Dong）January 2011

revised at inflation fluctuation

maintenance cost 20,000 Dollars/ km/ year

dividend to SPC None (retained earnings assumed as profit)

Figure 9-1 Assumed Project Scheme

SPC Invester lender

Vietnam

Investment（21%） lending（49%）

VGF （30%）

Concession Agreement

Design Company Construction

Company

O&M Company

Constract of Design, Construction

Constact of O&M

Road user

Toll fee

9-4

Figure 9-2 Financing method (case 2)


Interest：3.5 %







Table 9-1 Forecasted traffic volume and revenue from toll fee

Traffic(1000veh) Revenue from toll fee

remarks

①NH3-NH2 ②NH2-NH32 mil USD

2015 15.9 22.5 17.9

2020 25.1 33.1 37.9

2025 34.1 45.6 72.9

2030 45.1 60.9 136.0


Public (VGF)：30％ Operator ：70％

2STEP Loan 30％

JICA Overseas Investment: 40% Equity 30%

Toll incomesubordinated

Interest: 6.0%Period：10 years

（grace period ：3 years）

Interest：3.5 % Period：20 years

(grace period: 10 years)

9-5

9.3.2 Result of Case Flow Analysis

Table 9-2 below shows the results of cash flow analysis based on the most standard pattern (Case

2). The project is not sufficiently attractive for private companies to invest in although FIRR is over

12.0%. If traffic value decreases 20%, the Project becomes unfeasible. （Chapter 5 examines other

patterns to improve the profitability in this regard.）

Table 9-2 Financial Cash Flow (Case 2)

事業年度出資収益維持管理費支払利息法人税借入金返済キャッシュフロー1 -205.2 0.0 0.0 0.0 0.0 0.0 -205.22 0.0 0.0 0.0 0.0 0.0 0.0 0.03 0.0 0.0 0.0 0.0 0.0 0.0 0.04 0.0 0.0 0.0 -14.4 0.0 0.0 -14.45 0.0 0.0 0.0 -14.4 0.0 0.0 -14.46 0.0 27.6 -1.8 -25.5 0.0 -1.7 -1.37 0.0 32.6 -1.9 -25.3 0.0 -1.9 3.58 0.0 38.2 -2.0 -25.1 0.0 -2.1 8.99 0.0 44.4 -2.2 -23.6 0.0 -22.9 -4.2

10 0.0 51.5 -2.4 -22.0 -1.1 -23.2 2.811 0.0 59.7 -2.6 -20.5 -3.5 -23.5 9.712 0.0 69.0 -2.8 -18.9 -6.1 -23.9 17.313 0.0 79.3 -3.0 -17.3 -9.1 -24.3 25.714 0.0 90.9 -3.2 -15.6 -12.3 -24.8 35.015 0.0 103.8 -3.5 -13.8 -15.9 -25.3 45.316 0.0 119.5 -3.8 -11.6 -20.3 -34.2 49.617 0.0 137.0 -4.1 -9.8 -25.1 -34.2 63.818 0.0 156.6 -4.4 -8.1 -30.3 -34.2 79.519 0.0 178.4 -4.8 -7.7 -35.8 -13.7 116.520 0.0 202.8 -5.1 -7.2 -41.9 -13.7 134.921 0.0 219.0 -5.6 -6.7 -46.0 -13.7 147.122 0.0 236.5 -6.0 -6.2 -50.4 -13.7 160.223 0.0 255.4 -6.5 -5.7 -55.1 -13.7 174.424 0.0 275.9 -7.0 -5.3 -60.2 -13.7 189.725 0.0 297.9 -7.6 -4.8 -65.7 -13.7 206.226 0.0 321.8 -8.2 -4.3 -71.6 -13.7 224.027 0.0 347.5 -8.8 -3.8 -78.0 -13.7 243.228 0.0 375.3 -9.5 -3.4 -84.9 -13.7 263.929 0.0 405.3 -10.3 -2.9 -92.3 -13.7 286.230 0.0 437.8 -11.1 -2.4 -100.4 -13.7 310.231 0.0 472.8 -12.0 -1.9 -109.0 -13.7 336.232 0.0 510.6 -13.0 -1.4 -118.4 -13.7 364.233 0.0 551.5 -14.0 -1.0 -128.4 -13.7 394.434 0.0 595.6 -15.1 -0.5 -139.3 -13.7 427.035 0.0 643.2 -16.3 0.0 -151.0 -13.7 462.2

IRR 13.2%NPV 59.6

・

year investment revenue O&M cost interest CIT repayment Cash flow

9-6

○ Sensibility Analysis for Fluctuation of Traffic Amounts

Traffic Amounts

－20% -10% 0% ＋10% ＋20%

FIRR 11.4% 12.3% 13.2% 14.0% 14.8%

NPV(mil USD) -29.4 15.3 59.6 103.9 147.7

10-1

Chapter 10 Action Plans and Issues for PPP

Projects

10.1. The situation regarding implementation of this project

The status of the 37km of Hanoi Ring Road 4 (northwestern section) is that the final feasibility

study report was submitted by the MOT to the office of the prime minister on November 30th, and

the project method etc. awaits the decision of the prime minister. Concessions for the adjacent

section south from Hung to National Route 1A have already been granted to two private-sector

contractors as BT contractors, so it appears likely that the policy for this section will basically be to

apply a PPP project scheme. Also, Decree 71 was promulgated on November 9th, setting the new

legal framework for PPP projects. It determines the selection of PPP pilot projects, the international

competitive tendering to be used if selection of PPP contractors is required, and the rule that the

government’s investment and subsidies must be less than 30%. It covers these matters for all future

development of PPP projects.

According to the content determined by the decree, the first step towards the Hanoi RR4 project to

be adopted as a PPP pilot project is for it to be raised as a candidate with the Hanoi People’s

Committee and undergo MPI scrutiny. This study is positioned on the assumption that the project

will be raised with the Hanoi People’s Committee.

10-2

10.2. Measures which will be necessary for the implementation of this project

10.2.1. Investment in the Vietnamese government’s VGF

The 37km length of Hanoi Ring Road 4 (northwestern section) includes the Hong Ha Bridge,

which will be very expensive to build, so this project would appear to present high hurdles for

private-sector investors. The reasons are stated below. [1] Compared to adjacent sections, the

project cost will be approximately 50% higher. [2] Passage tolls are set by decree of the Ministry

of Finance, so there is no flexibility for the contractor. [3] Traffic flow forecast survey results

exist, but there is likely to be resistance to tolls, so the survey results come with a large element of

risk.

For private-sector contractors to express an interest in this project after considering these risks,

it appears that there would have to be substantial financial support from the government and

elsewhere. If the Vietnamese government had a systematic PPP support policy by which the

Vietnamese government would pay for VGF and the funds would be covered by investment from

the Japanese side, it would be a strong incentive for Vietnamese private-sector contractors, and for

the Japanese companies which would partner with them.

At present Decree 71 stipulates that the government’s contribution, including VGF, to any

individual PPP project must be less than 30%, including land acquisition costs, but it is important

for the government and contractors to come to an accommodation on each project, so exceptional

rules should be applied flexibly.

10.2.2. The establishment of objective assessment criteria for international competitive

tendering on the Vietnamese side

Decree 71, which was promulgated on November 9th, declares, both in Vietnam and overseas,

that international competitive tendering will be used as the selection method for PPP contractors,

using a method of high fairness and transparency. This should be noted as a major step forward.

However, considering the fact that PPP projects are very different from cases of private

companies contracting for public works projects, it is necessary to set assessment criteria to

determine rankings. Those assessment criteria must be acceptable to the private-sector contractors

as appropriate. The Vietnamese government must urgently determine the assessment criteria.

10-3

10.2.3. Flexible application of BT and BOT schemes

The Hanoi People’s Committee has contracted concessions with private companies for the

construction sections adjacent to the area surveyed, between Hung and the National Route 6

intersection (six lanes, 20km long) and between National Routes 6 and 1A (six lanes, 17km long).

Both are BT schemes.

A BT scheme is one in which the private-sector contractor builds the road at its own expense,

and is granted the land by the government (transfer of land rights) in return. The outskirts of

Hanoi are close to the capital, so there are many suitable sites for residential land, industrial parks

and resort areas. For realty developers, BT schemes are highly attractive because they are exposed

to little market risk. However, BT projects are based on the assumption of permanent use of the

land, so there is a restriction that foreign companies cannot participate. In the PPP schemes now

under consideration, most are BOT schemes, but for investment values that will not be covered by

fee collection, the use of a scheme mixing BOT and BT aspects, in which land on the outskirts of

Hanoi would be transferred in payment, would be a very useful method in Vietnam.

This is not possible under the current legal framework, but it appears that partial revision of the

law might be possible, and that is a matter for future research. If it were possible, a new Decree

could be issued or the existing one amended, and them it would become quite feasible to go

forward with such a scheme in the survey area.

10.2.4. Toll policy, taking other road tolls into account

The issue of how to set passage tolls is one of the most important for the private-sector

contractor of a toll road under a PPP scheme. For a route substitution road project such as RR4,

there is the risk that potential users will not use the road, even if it is highly convenient, if they

feel that the toll is too high. For a road that is built to alleviate congestion, it becomes necessary to

adopt a comprehensive pricing policy that makes users keen to use the road, taking into account

the tolls and convenience of other roads. In short, toll policy is an important measure affecting the

extent to which toll resistance can be overcome. Specifically, the toll setting must take into

account the tolls on the Nhat Tan Bridge and the Thang Long Bridge, which will be completed in

future.

Other than those considerations, the inflation rate in Vietnam is high, so it appears necessary to

have a system for revising tolls every few years, in linkage with the inflation rate.

10-4

10.2.5. Measure for Delay of land acquisition

In Vietnam, delay of land acquisition often happens, which is obstacle for construction. This has

effects Nhat Tan Bridge construction. The delay can be big obstacle for participation of foreign

investors without appropriate countermeasure, including penalty for government.

10-5

10.3. Specific Action Plan and Issues for the Implementation of This Project

In January 2011, we made case-by-case proposals for a number of PPP schemes for this project,

ran financial analyses and explained the results to key related local agencies. The case-by-case

PPP schemes included proposals for cases in which the government’s financial investment,

subsidies and other expenditures on a PPP project would exceed the regulation maximum of 30%

which is stipulated in “Decision 71”, the legal framework for PPP projects approved by the prime

minister on November 9th, 2010. In one case, VGF was set at 50%, as an exceptional measure.

At the report meeting in Viet Nam. the MPI took a negative stance on exceptional payments in

excess of 30%, on an emergency basis, from VGF for PPP projects. Among the schemes

considered, there was a positive attitude to the scheme in which the government would build the

Hong Ha Bridge as an ODA project and contribute to the PPP contractor which builds the road

portion, after which the PPP contractor would be responsible for unified operation and

management. PMU2 was also favorable to that scheme, and commented that its attitude was the

result of consultations with the MPI and MOT. If the Hong Ha Bridge was implemented as a Yen

loan project and the operation management was a PPP project, that would accord with the

Vietnamese side’s desire to gain new technology in expressway operation management. To that

end, it will be necessary to proceed with developing the environment for working with the focus

on that scheme.

10.3.1 Action Plan and Issues on the Vietnamese Side

The steps that should be taken by the Hanoi People’s Committee as the client for this project

are to submit this project to the MPI as a candidate PPP project and obtain the MPI’s approval,

and at the same time, lobby the Japanese side to adopt the Hong Ha Bridge as a JICA Yen loan

project. The most important point for implementing this projects as a PPP scheme is to work

through those two actions in parallel.

The Vietnamese side can decide independently on proposing the project as a PPP project, MPI

adoption and related issues, but at the same time, the completion of the Hong Ha Bridge as a Yen

loan project is the key point of the scheme, so the most important task is to strongly press the

Japanese slide to raise the priority of Hong Ha Bridge as a Yen loan project.

The environmental study is at the initial environmental survey stage, so another procedure the

Vietnamese side should be working on is to start the EIA procedure early and obtain EIA

approval.

10-6

10.3.2 Action Plan and Issues on the Japanese Side

On the Japanese side, a private-sector operator interested in the PPP project would probably

find it an effective choice to use a JICA PPP infrastructure project preliminary survey to fill out

the content of this study. If the operation management will be handled by a Japanese company, the

company’s expenses will unavoidably have to be covered by transport toll revenues. The issues

that should be investigated by the PPP infrastructure project preliminary survey are as follows;,

① whether it will be possible to arrange a hedge against traffic demand risks, such as a

government-guaranteed minimum traffic volume revenue or not ② whether it will be possible

to hedge against traffic demand forecasting risks with the method of distributing the traffic

volume revenue within the SPC or not.

10-7

10.4. Results of the PPP Project Fact-finding Survey in Vietnam

The Study Team performed an interview survey by visiting private-sector companies in Viet

Nam with experience or current operations in BOT or BT projects, to ask about their company

summaries, business content, funding procurement, traffic volumes, future outlook and other matters.

The results are as stated below.

10.4.1. BITEXCO (Binh Minh Production Management and Import/Export Company),

Hanoi Office

Date and time: December 3rd, 2010 (Friday) 09:00-10:30

Interviewed personnel: Financial Investment Director

Infrastructure Development Department

Proceedings:

The aim of the survey team was to investigate making a 37 km section of RR4 (northwest side) into

a PPP project, and in order to study the project scheme, a fact-finding study was performed to draw

on the PPP experience of the relevant staff at BITEXCO, a company with experience of PPP projects

in Viet Nam.

The survey team explained its aims at the meeting. The Financial Investment Director gave the

following explanation:

＊ BITEXCO is a 100% private-sector company, and its four main types of business are realty,

infrastructure development, hydroelectric power generation and mineral extraction. Its realty

operation is top class, even by Vietnamese standards.

Examples of BOT project implementation

[1] National Route 1 bypass toll road

＊ The bypass toll road is 10-km long for National Route 1 in Thanh Hoa province, with one lane

in each direction, and is now in service under a BOT scheme. The project cost was USD50

million (including land compensation costs). The toll collection period is 27 years, starting from

January 2009. Project revenue only comes from tolls. Traffic flow is currently 9,000 vehicles a

day (2% above the forecast). The route includes six bridges of various sizes. Land is used free of

charge by the contractor, at government expense.

＊ As the project is a BOT scheme, tolls for four-wheeled passenger vehicles are set at

VDN20,000, according to Ministry of Finance regulations (administrative ordinance No. 78).

10-8

Motorcycles do not pay tolls. The tollgate is installed on NH1 (tolls are also collected from

vehicles traveling on NH1).

[2] Between Dau Giay and Phan Thiet (BOT project under negotiation)

＊ Four lanes in each direction between Dau Giay and Phan Thiet, a total length of 100 km, for a

project cost of USD9 billion. The government provides 30% funding (land acquisition cost is

not included, and because this is the first PPP pilot project, administrative ordinance No. 108,

which limits the total value of government funding to 30%, does not apply).

＊ BITEXCO won this project in an international competitive tender. No foreign companies are

involved in the SPC at present.

＊ The BOT scheme contract is under negotiation with the government, and has not been

concluded yet.

＊ If the government provides 30% funding, the BOT project should be feasible on toll revenue

alone.

＊ There will be 15 tollgates and tolls will be distance-based, at VDN900/km. This toll level was

set with reference to the examples of neighboring roads, residents’ ability to pay, and other

factors, and the toll collection period will be 35 years.

＊ Decree 108 was promulgated concerning PPP, BOT and BT projects, after it was written with

the assistance of the World Bank. It is based on international investors’ standards, and it clarifies

[1] investor selection criteria, and [2] the value of government funding input. This project will

be implemented as a pilot project under the legal framework of Decree 108.

＊ Traveling along the Dau Giay - Phamtiet section takes two hours, compared to five hours on

NH1.

The RR3 BT Project

＊ A BT scheme for RR3 (5-6 km between Hoang Mai and Ku) is under negotiation.

＊ Viability Gap Funding (VGF) appears to be necessary PPP projects in Viet Nam, because of

the high levels of interest.

Challenges for PPP Projects in Viet Nam

＊ The following points require care when running PPP projects in Viet Nam: [1] System change

risks, [2] land acquisition risks (the government can provide relocation areas, but how will it

agree contracts with the landowners?), [3] the progress of negotiations with government

agencies.

10-9

10.4.2. VINACONEX (Vietnam Construction and Import-Export Joint Stock Corporation), Ha Noi Headquarters

Date and time: December 3rd, 2010 (Friday) 13:30-14:30

Interviewed personnel: Deputy Director General Director, Department of Construction

Proceedings:

The deputy director explained the following

Road widening project between Lang and Hoa Rac, using a BT scheme

＊ The project consists of widening an existing 2-lane road to six lanes for vehicles, two lanes for

emergency use and four lanes for service roads, a total of 12 lanes. The total length is 29.9 km,

and construction is in progress.

＊ The project cost (investment funding) was planned as VND4.5 trillion for construction costs,

VND1.9 trillion for land clearance evictions and VND1.1 billion for other costs (design,

construction management, reserve funds). Vinaconex has agreed a BT scheme contract with the

government to acquire 2,300 ha of land along the route (the land list has been submitted) as

compensation for the investment cost.

＊ However, the government has only actually given 263 ha of land (VND1.5 trillion). It reneged

on the contract, choosing to offset the 2,300 ha with VND7.5 trillion and pay that sum. As a

result, the road widening project has become a state project and Vinaconex is no more than a

construction contractor (although it will not lose money).

＊ In the BT scheme land acquisition process, the government negotiates the evictions and the

contractor pays the eviction costs. In this case, the government is the Ha Noi People’s

Committee (HPC).

＊ Procedures to transfer the land for the ongoing road widening work to the HPC are likely to end

by the end of this year.

Impressions of this survey section from the perspective of an investor

＊ The BT project order for the section of RR4 between the intersections with NR32 and NR6, a

total of 20km which is the most attractive section for investors, was placed solely with Him Lam

Corporation.

＊ It appears that it would be difficult to use a BT scheme for the 37-km section. The traffic

demand forecasting for a BOT scheme is also difficult and there is no confidence in the potential

for recovering the investment. It might be feasible as a PPP scheme. It seems that the land

clearance eviction process would not be difficult. If a Japanese company was an investor,

Vinaconex would be able to cooperate. The project scale would be VDN9 trillion for the road

alone, and that would probably double once bridge sections are added.

10-10

10.4.3 Him Lam Corporation, Hanoi Branch

Date and time: December 6th, 2010, 09:00-10:30

Interviewed personnel: The director and two other staff

Proceedings:

The aims of the survey group were explained, stating that the group had come to consult with Him

Lam on the optimum scheme for making a PPP scheme of the RR4 (northwestern section), and the

company’s business content was checked.

BT Project Content ＊ The scheme is broadly divided into three project plans.

＊ The road construction project is to build a six-lane road with a design speed of 100 km/hr

between the intersections with NR32 and NR6, and receive land alongside the route from the

government as compensation. So, it is a BT scheme. The project cost is VDN14 trillion,

consisting of VDN7.7 trillion for construction costs, VDN2.4 trillion for land acquisition, and

VDN4 trillion for other costs. The scheme has been largely decided and the contract is to be

agreed soon.

＊ The road will be transferred to the government on completion, but a scheme has been

proposed in which planted vegetation etc. on the road embankments would be managed in

exchange for revenue from advertising along the road, for a period of 30 years.

＊ A proposal has been submitted to the government to install ITS facilities for electronic toll

collection (ETC) and cover the cost of approximately VDN100 billion from toll collection,

and negotiations are in progress. Tolls to be collected will be decided through negotiations

with Ha Noi City.

The director’s responses to the survey group’s questions are summarized below. ＊ This project was not tendered, but was a proposal put to the government through lobbying,

which was accepted.

＊ The foundation of an SPC is under consideration. There are no partners at present, making it a

single-company project. Project financing has not yet been decided, but could be corporate

finance.

＊ Road design will be outsourced, and consultant contracts have been concluded.

＊ Project funding will come from the domestic banks, and borrowing from a foreign bank

(Citibank) is planned for realty development of the land transferred from the government.

＊ There are many waterways alongside the road, and it will be developed as a resort area. The

main road structures will be three interchanges.

10-11

Impressions of this survey section from the perspective of an investor ＊ For RR4 (northwest), a method blending BT and BOT schemes would be desirable. Such a

scheme could be adopted through PR lobbying of the government. However, such an approach

would be impossible for a foreign company. At present, the legal aspects of using these two

schemes in one project appear to be very difficult.

Appendices

A-1

Appendix A Minutes of Discussion

(1) First Study Trip

1. Japanese embassy

- Date: November 30, 2010 (Monday), 9:00-9:30

- Persons interviewed: First Secretary

- Summary of Discussion:

It explained the purpose and the route of this Project from the Study Team. The comment from the

Japanese embassy is as follows.

* As for the PPP business, share of scope between government and private company is the most

important. Not only the relevant statute but also the contract between two parties are key

issues.

* Strong will for the profit is required for PPP Project since it is accompanied by the market

risk.

* It can be considered that the Project Site has no specific problem. I hope your Team

successfully completes the Study.

* Careful examination will be required since PPP doesn't often go well, though it seems that a

Vietnamese government catches the scheme to be versatile.

* The bridge across the Red River in another route will be a rival of the Hong Ha bridge of

RR4.

A-2

2. JICA Vietnam office

- Date: November 30th, 2010, 10:00-10:40

- Persons interviewed: Chief Representative and Senior Representative


The purpose of this Study and scheme of the BT was explained.

* HAPI asked to add the section NH2- NH3 to OCAJI Study Section, which was probably

because of Hanoi’s expansion to the west.

* Assumed project cost is 70 billion yen for 39km section in the report of TEDI. It can be

considered that the section has few technical problems. This Study focuses on the examination

of the Project Scheme including traffic demand forecast, while OCAJI Study focuses the

technical examination.

The comment from the JICA is as follows.

* The legal framework of the PPP has changed recently.

* BT scheme in Vietnam is similar to the housing land development by train company in Japan.

* The support plan of JICA is becoming concrete as for RR4. JICA also supports the PPP.

* JICA is providing Yen Loan to construction of the new NH-3.

* The South Korea enterprise is ardently advancing the BT method business.

* Standardization of ICT for toll fee collection is being examined by JICA.

* It can be considered that the priority of RR4 shall be clarified in the current situation that

many expressways are planned to be constructed.

* About this section of RR4, it is heard that there is a possibility of the Yen Loan. It is necessary

to examine for which part Yen Loan is required. .

* I would like to ask your to exchange information adequately with the JICA.

A-3

3. PMU2

- Date: November 30th, 2010, 14:00-15:00

- Persons interviewed: General Director and Director


The Study Team introduced the members and objectives. It was explained that the Study Team is

interested in BT business since BT concessionaire has been already decided for one section of RR4,

while our main focus is BOT. Afterwards, PMU2 explained their role and the allotment of the PMU2

in the RR4 as follows.

* PMU2 submitted investment plan to government under the direction of Ministry of Transport

(MOT) while nearby province. 39km section of RR4 has been already submitted though has

not been adopted yet.

* Implementation agency will be Hanoi Committee in case of PPP, and will be PMU2 in case of

ODA. PMU2 has proposed plan for ODA to the Prime Minister.

* Private capital such as BOT, BT, and PPP can be utilized while ODA is required for Hong Ha

Bridge. Hong Ha Bridge is the greatest concern for PMU2. There will be no role of PMU2 if

scheme for Hong Ha Bridge becomes PPP.

* Construction cost for Hong Ha Bridge is quite high and obstacle for investment. Therefore, I

expect that ODA will be provided for Hong Ha Bridge as a proposal of PMU2.

The Study Team explained it will examine various financing method while mainly focus on BOT,

studying preceding cases. It is understood that there are more cases of BOT as for toll-way, though

adjacent section is implemented through BT scheme. PMU2 explained the plan of RR4 in detail.

* The positioning of section is more important than the traffic demand in Hanoi City in 2010.

* The following section successfully attract investment from the entire extension of L=130km,

W=120m.

1. Him Lam Corporation obtains the investment permission from HPC in the adjacent

NH32-NH6 section (20km in the total length). Negotiation of BT contract is proceeding.

Him Lam will be responsible for construction management.

2. NH-6-NH-1 is decided to be implemented by the combined investment of Song Hong

(Headquarter is in Hanoi, MOC) and FPT.

Project cost for L=39km sections is 20 trillion Dons (about 80 billion yen) according to the

calculation of the PMU2. It is scheduled to be completed in 2015.

* PMU2 offered they would go to the site investigation with the Study Team.

A-4

Meeting with PMU2

A-5

4. JETRO Hanoi Representative Office

- Date: November 30th, 2010, 16:30 – 17:00

- Persons interviewed: Chief Representative and Senior Representative


The Study Team explained the schedule and purpose of this Study. The questions were asked from

JICA on project cost, construction schedule, and the reason why this section is prioritized in RR4.

The Study Team answered that;

* Construction period will be three years.

* Construction cost will be JPY 70billion.

* The Section shall be prioritized since this area is emphasized by Hanoi city for investment

to Hoa Lac is expected. Decent revenue from toll fee is required in case of BOT since

interest is high in Vietnam.

Comments of JETRO are as follows.

* MPI plays central role for promoting the PPP about two years. The funding and the land

acquisition will become problems. How Hanoi City cooperates also becomes a key issue.

* JICA funded Hoa Lac industrial park and the Hai Phong port, and RR4 is important as these

transport pathways.

* It is considered that usage of foreign fund is required for the construction of Red River.

* Increase in traffic demand can be expected as industrial parks are developed though a lot of

traffic demands cannot be expected since there are many farmlands.

* Hoa Lac bypass road has become bumpy soon after expansion construction completed at 10

October in cerebration of 1,000 years after relocation of Hanoi, though construction period

is short. I recommend the Study Team to run the road. Balance between quality and cost

shall be well considerd.

* A detailed design of RR5 has started in South Korea Fund. The South Korea enterprise has

strong interest in the BT method.

A-6

5. TEDI (Transport Engineering Design Incorporated) headquarter

- Date: December 1st, 2010, 9:00-10:30

- Persons interviewed: General Director, Vice General Director, and Director of CITEC

- Summary of Discussion

The Study Team introduced the members and purpose. Comments from TEDI are as follows.

* It can be considered that studied section of RR4 is difficult to be realized by PPP scheme. In

other section (southwest) of RR4, there are already investors in Vietnam.

* RR4 report prepared by TEDI is in the stage that is waiting for recognition of government and

has some possibility of the change in the future about detailed contents, which cannot be

provided in this stage. TEDI is an enterprise under MOT, and it is necessary to acquire

permission from MOT before providing formal documents to Study Team.

* TEDI has examined various business schemes, including ODA.

* Two engineers will be provided for supporting Study Team.

A-7

6. MPI (Ministry of Planning & Investment)

- Date: December 1st, 2010, 14:30-16:30

- Persons interviewed: Vice Minister

- Summary of Discussion

The Study Team introduced the members and purpose. Comments from Vice Minister of MPI are

as follows.

* Ministry of Transport (MOT) submitted the master plan concerning the RR4 to the Office

of Prime Minister on November 30 and is waiting for the Prime Minister approval.

* In a new PPP scheme, governmental fund shall be less than 30% including the land

expense. Of course, there is an exception when the project is important or must be

implemented in hurry. It is better to implement project by government directly if

governmental fund is more than 30 % though it will promote investment of private

company.

* The high technology of the advanced country, management and the management

experience are expected to be introduced for PPP. The studied section is not targeted by

five projects that Prime Minister Vietnam is announcing as a pilot business of PPP in

having collected the opinion of METI and JICA. Five project is for Vietnam in the nine

of METI and JICA.

* The application of Hanoi City of the RR4 northwest section has not risen now though PPP

advances in the following steps 1) application of Project from provinces or ministries 2)

appraisal of MPI, 3) the government decision.

* Even when Japanese Company participates in the PPP business, the rule is a competitive

tendering. It can be considered that the management experience of Japanese Company is

useful and has competitiveness. However, it is necessary that the quality and the cost are

suitable for Vietnam.

* We can provide information to the Study Team if Hanoi City requests it after consulting

with Hanoi City.

* The road and the bridge shall be divided; the road shall be implemented by PPP and the

bridge by the Yen Loan.

Conference with MPI

A-8

7. HAPI (Hanoi People’s Committee/ Authority for Plan and Investment)

- Date: December 1 , 2010 (Wednesday) 17:00-18:30

- Persons interviewed: Vice Director, Director of Hanoi Investment Promotion Center, and four

another persons


The Study Team introduced the members and purpose, and explained the deadline of the report is

21 February, 2011. Comments of Vice Director are as follows.

* MOT submitted the master plan of RR4 to the Prime Minister. Part is implemented not only

with budget of the government but also with PPP by instruction of HPC. We gave direction the

consultant. The section R32-R3 is planned to develop as PPP, and the investor has already

been decided.

* We have not been received yet though the report is to be submitted by MOT to HPC.

* You should cooperate with TEDI because the study of TEDI serves as a reference. TEDI

planned master plan and detailed information.

* The drawing of material provided by the Study Team is slightly different from the latest. The

intersection with new No.3 in the national road is a starting point in the latest plan.

* MOF has issued the notice of toll fee concerning BOT in 2004, which is on the site of MOF.

Toll fee for the car of four wheels is 10,000VND in the standard but BOT doubles. There is no

regulations for distance. It is decided in consideration of the resident living standard.

* When the PPP business is executed, HAPI will accept the investment plan and Hanoi People’s

Committee will examined it, which will be submitted to MOT.

* When the PPP business is executed, MOT, MPI, and MOF advise Hanoi City. We would like

to expect that the report will reflect the investment scheme, the road map, progress, and the

technical matters, since persuasive power increases when it is submitted to HPC via HAPI.

The Study Team should consult with, Architectural Bureau, Architectural Research Institute,

and MOT of Hanoi City through HAPI if you wants to consult with HPC.

* HAPI is responsible for the project even if the scheme is decided to be ODA, not PPP..

* HAPI does not have experience of BOT as for road.. Therefore, we recommend the Study

Team consults MOT about the toll fee.

Meeting with HAPI

A-9

8. MOT (Ministry of Transport)

- Date: 9:00AM, December 2nd, 2010?10:30

- Persons interviewed: General Director and Deputy Director General


The Study Team introduced the members and purpose. Deputy Director General's comments are as

follows.

* MOT also participates for making of PPP framework. MPI examines the project that HPC

enumerated as a candidate and the pilot project is submitted to the government. Investment

plan will be advertised by the bidding. The best idea will be selected based on a new PPP

standard (It is promulgated on 9 November on Vietnamese government Web site).

* The legal framework of BOT and the BT business depends on paragraph 108 of the

government ordinance. It is provided to make PPP PPP business if it is suitable for the

standard in paragraph 71 of the government ordinance of promulgation on November 9 as a

new frame.

* In the new legal framework of PPP, the government fund shall be within 30% (including

land acquisition). It is necessary to report to the government when exceeding it.

* It is necessary to examine the investment and the recovery enough though technological

material concerning the road and the bridge can be obtained from TEDI.

The General Director’s comments are as follows.

* MOT submitted a detailed plan including the financial plan to the government. Recognition of

government is expected to be obtained by about the end of January. Material can be offered

after that.

* MOT submits and manages the plan chart, and after approving the Prime Minister, and HPC

will take over. Therefore, the Study Team should consult about details of the matter with

Hanoi City. There is no role of PMU2 for the present.

* We prefer splendid bridge including aesthetic design, though several options are proposed.

Meeting with MOT

A-10

(2) Final Debriefing in Vietnam

1. MPI (Ministry of Plan and Investment)

- Date: January 19, 2011 (Wednesday), 8:30-9:10

- Persons interviewed: Vice Minister, Director of Public Procurement Department, Deputy Director

of International Investment Department


The Study Team explained the result of this Study, especially that it had been understood that Case

3 and 5 were financially preferable from FIRR and the NPV calculation.

Comments from Vice minister is as follows.

* We highly appreciate the report of this Study. We would like to proceed with the study by

contracting with an independent consultant because it is a business with a high risk like the

traffic demand. Because the cost of construction influences the quality, it is not necessarily the

cheapest is the best. The quality of the one in G7 including Japan is good.

* We would like to deepen strategic cooperation with Japan. The examination to decide solicit

or un-solicit or the examination will be advanced. The Scheme for the road and the bridge

shall be separated. The investor will be chosen based on Decision 71 in the future. The

principle that VGF shall not exceed a maximum of 30% guarantees of the debt for the investor

shall not be provided will be strictly observed.

* Because the PPP business will increase in the future, the establishment of Infrastructure

Development Fund (IDF) is examined to reduce PPP entrepreneur's risk. Moreover, the

combination section for the PPP business by the Ministry of Finance, the Department of

Justice, and the member of State Bank and MPI is planned to be started up in the government

part in two weeks.

Vice minister asked opinion of MOT, and the Study Team introduced what director of MOT had

said.

“We would like to hear a presentation at the stage where maturity of the Project improves. TEDI is

reviewing the master plan, so the Study Team can coordinate with TEDI after the review is

completed.”

A-11

2. JICA

- Date: January 20th, 2011, 10:00-11:30

- Persons interviewed: Senior Program Officer



3 and 5 were financially preferable from FIRR and the NPV calculation. Questions and answers are

as follows.

Comments from Senior Expert are as follows.

* The financing of the real estate development companies in Vietnam is considerably severe

now. They fully utilize advanced payment from clients, which is not good environment for

PPP. The interest rate of the fixed deposit is 14% and the lending interest rate is about 18%.

* The cost of the road construction seems to be rather too cheap. It is about one billion yen/

km based on the results of the four- lane expressway.

* The priority level of RR4 is difficult issue. The priority of RR4 will be improved if there is a

large-scale urban development business of Japanese firms near the Hong Ha Bridge, and

urban development and the road construction can be integrally implemented.

Senior Expert asked opinion from MPI, and Study Team introduced opinion of Vice Minister.

“The principle that VGF shall not exceed a maximum of 30% guarantees of the debt for the

investor shall not be provided will be strictly observed. It is necessary to construct the bridge and

the road with the separating scheme.”

A-12

3. HAPI (Hanoi Authority lan investment bureau)

- Date: January 20, 2011 (Thursday), 16:00-17:40

- Persons interviewed: Vice Director, Director of Hanoi Investment Promotion Center




as follows.

HAPI : We would like to ask you to examine the Project based on the MOT’s report, which is

in a stage where the Prime Minister approval is waited.

Study Team : Examination of the Study Team is based on Vietnamese specification, and it is not

different from the report of MOT.

HAPI : How does the Study Team set the toll fee?

Study Team : The Study Team followed the example of Dau Giay - Phan Thiet Expressway

implemented through BOT, whose toll fee is 900VND/km. It is possible to set many toll

fee cases in the trial calculation.

HAPI : What is contained in the guideline of overseas investment of JICA?

Study Team : The guideline is future tasks though JICA seems to be taking action to restart overseas

investment that stops temporarily.

HAPI : We would like you to deepen the examination of cases 3 and 5 further.

HAPI : In case 5, the bridge and the road are constructed in different schemes, and case 5

might be not able to be called PPP.

Study Team : Case 5 is the scheme well-known in Japan for improving the profit of the former

public corporation that have constructed expressways with the debt. This is

implemented through cooperation of public and private. I think that Investor will show

their interest for case 3 and 5.

HAPI : To collect toll fee from sections other than 37km, and to allot it the repayment of the

bridge is one alternative.

Study Team :･This is preliminary study, so we would like to ask you to examine the case.

HAPI : We highly appreciate the report of this Study.

A-13

4. PMU2

- The date: January 21st, 2011, 9:00-10:10

- Persons interviewed: Deputy Director, Manager, and two another names.




as follows.

Comments from Deputy Director are as follows.

* Case 5 is the same as the result of our discussion with MOT and MPI. I would like to ask you

to make an effort for Yen Loan early by case 5. It is preferable to complete the bridge and the

road at the same time. Whether it is BOT or BT of PPP businesses is examined in a

Vietnamese side.

* The bridge type is not decided, but beautiful bridge is preferable. A new type of bridge

different from Nhat Tan is preferable.

5. Japanese embassy in Vietnam

-Date: 1January 19, 2011 (Wednesday) 10:30 – 11:00

- Persons interviewed: First Secretary




as follows.

6. JETRO Hanoi Representative Office

- Date: 19th January 2011, 15:00-16:00

- Persons interviewed: Chief Representative




as follows.

The following is the comment from Chief Representative.

* I understood case 5 is preferable. How to improve the priority of RR4 will be the issue.

B-1

Appendix B Minutes of Discussion with Local Environmental Consultant

- Date: 2nd December, 2010 (Thursday), 13:00-17:00, 3rd (Friday), 8:30～17:00,

6th (Monday), 8:30～12:00

- Persons interviewed: Local environmental consultant performing EIA (Dr.)


1. Stage of EIA

* In Vietnam, it is provided that environmental impacts shall be assessed in two stages of Initial

Environment Examination (IEE) and Environmental Impact Assessment (EIA). IEE shall be

implemented at Pre F/S stage and EIA shall be implemented at F/S stage.

* The assessment of the project route is now in the intermediate phase of the first stage. Report

of the first stage will be completed in March 2011. After completion of second stage, the

report shall be summated to Ministry of Natural Resource and Environment.

* Only basic information has been collected in this stage, and investigation has not been

implemented for existence of rare spices. Study for resettlement also has not performed.

Resettlement and Compensation Plan will be required along with EIA.

2. Alignment

* Most of the area is farmland where wet-rice double-cropping or double-cropping of wet-rice

and corn are practiced. The cultivation periods of double-cropped rice are from December to

April and from June to September or October. Concerning double-cropping of rice and corn,

rice is grown from February to May and from June to September while corn is grown from

September to January. Average farmer’s income is 1,000,000-1,500,000VND/ month.

* Generally, the alignment is revised to avoid pagoda and graveyards. It is especially difficult to

relocate pagoda. Environmental consultant must consult with local People’s Committee.

Consultation with local residents is encouraged, but not necessary.

* It is believed that the project will have little possibility to give significant impact to rare

species. However, a detailed survey is required for wetlands and river areas.

* Resettlement will be the biggest problem. Places after resettlement are generally near the

places before resettlement.

B-2

3. Relevant Law

* Several laws are relevant to resettlement, including law on environmental protection, law on

land. Several agencies are responsible incouding Ministy of Natural Resources nad

Environment, Ministry of Planning nad Investment, and People’s Committee.

* Informal settlers are generally not subject to compensation, though they can be subject to

compensation based on duration of settlement.

C-1

Appendix C Photos on the Project Site

① Km 118+730（Intersect with Hanoi – Thai Nguyen Expressway）

②Km 119+500

North Side

West Side East Side

South Side

North Side

West Side East Side

South Side

C-2

③Km 119+750 (Intersect with NH.3)

④Km 120+750

North Side

West Side East Side

South Side

North Side

West Side East Side

South Side

C-3

⑤Km 122+200

⑥Km 123+500

North Side

West Side East Side

South Side

North Side

West Side East Side

South Side

C-4

⑦Km 125+000

⑧Km 125+900

North Side

West Side East Side

South Side

North Side

West Side East Side

South Side

C-5

⑨Km 127+200

⑩Km 128+100

North Side

West Side East Side

South Side

North Side

West Side East Side

South Side

C-6

⑪Km 129+700

⑫Km 131+500

North Side

West Side East Side

South Side

North Side

West Side East Side

South Side

C-7

⑬Km -1+451(135+400) ( Intersect with Hanoi – Lao Cai Expressway)

⑭Km 0+0.0 (Intersect with NH.2)

North Side

West Side East Side

South Side

North Side

West Side East Side

South Side

C-8

⑮Km 2+600 (Intersect with Yen Vien – Lao Cai Railway)

N

North Side

West Side East Side

South Side

C-9

⑯Km 5+800 (Intersect with NH.23)

⑰Km 9+300 (Hong River North Dyke)

North Side

West Side East Side

South Side

North Side

West Side East Side

South Side

C-10

⑱Km 10+100

⑲Km 10+900

North Side

West Side East Side

South Side

North Side

West Side East Side

South Side

C-11

⑳Km 11+000 (Hong River)

○21 Km 13+200

North Side

West Side East Side

South Side

South

C-12

○22 Km 13+400 (Hong River South Dyke)

○23 Km 15+600

North Side

West Side East Side

South Side

North Side

West Side East Side

South Side

C-13

○24 Km 18+940 (Intersection with NH.32)

North Side

West Side East Side

South Side

study on private-initiative … on private-initiative infrastructure projects in developing...

Documents