Study on Economic Partnership Projects

in Developing Countries in FY2010

Study on the Second My Thuan Bridge Construction Project

SUMMARY

March 2011

第1章 第2章 The Ministry of Economy, Trade and Industry

Prepared by:

Ernst & Young ShinNihon LLC Japan External Trade Organization (JETRO) NIPPON KOEI CO., LTD. IHI Infrastructure Systems Co.,Ltd.

1. Background and Necessity of the Project

The Ministry of Transport of the Socialist Republic of Vietnam (MOT) established the

Master Plan for Expressway Development in November 2007. The plan includes a total

expressway length of approximately 6,000 km as stated in letter No. 7056/TTg-BGTVT, approved

by the Prime Minister in December 2008 through Decision No.1734/QD-TTg. The Trung

Luong–Can Tho Expressway including the Second My Thuan Bridge is a part of the North-South

Expressway. Also included is a main arterial road connecting between Ho Chi Minh City (HCMC)

and the area of the Mekong Delta, which is planned to be completed till the year of 2020.

In February 2008, Bank for Investment and Development of Vietnam (BIDV) obtained

the right to development of the Trung Luong-Can Tho Expressway which had been planned as a

Build-Operate-Transfer scheme (BOT) project with BIDV Expressway Development Company

(BEDC) as the owner by MOT’s Decision No. 343/QD-BGTVT. Although the construction of the

Trung Luong–My Thuan Expressway has been conducted, the development of the remaining

section including the Second My Thuan Bridge and the My Thuan-Can Tho Expressway has been

transferred to PMU My Thuan due to lack of investment fund, through MOT’s Decision No.

1318/QD-BTTVT dated 18th of May 2009, following the Government of Vietnam (GOV) Notice

No. 137/TB-VPCP of 24th of April 2009.

Due to lack of investment funds, MOT planned to postpone the construction of the

Second My Thuan Bridge and temporarily utilize the National Highway No. 1 (NH1) including

the existing My Thuan Bridge and National Highway No. 80 (NH 80). Figure S-1 shows the

detailed plan for the North-South Expressway made 6803/TTr-BGTVT on the 30th of September

2009, approved by the Prime Minster through Decision 140/QD-TTg on 21th January 2010.

However, it is concerned that the section of the four-lane My Thuan Bridge and two-lane NH80

will experience traffic bottleneck and the level of service of the expressway will be downgraded

due to traffic congestion, which will also induce air pollution.

The traffic volume between HCMC and Can Tho has been increased in the wake of

opening of HCMC-Trung Luong Expressway in February 2010. Further increase in traffic volume

is expected upon the opening of the Trung Luong–Can Tho Expressway. Therefore, MOT places

high priority on the Second My Thuan Bridge Construction Project (the Project) in order to

reinforce the traffic capacity for crossing Tieng River and hopes for prompt project

materialization by Japanese ODA.

Under such circumstance, the Ministry of Economy, Trade and Industry of Japan (METI)

decided to carry out a study on the Project under the scheme of “Study on Economic Partnership

Projects in Developing Countries in FY2010”.

NH No.1

Trung Luong - My Thuan Expressway

My Thuan - Can Tho Expressway

My Thuan Bridge

Tien Giang River

NH No.30

NH No.80

HCMC

Can Tho

NH No.1

Temporary Usage

of NH No.1

2nd My Thuan Bridge and

Approach Road

Source: Study Team

Figure S-1 Location of the Second My Thuan Bridge and Temporary Plan to Utilize NH1

2. Policies for Determination of Contents of the Project

The contents of the project are number of lanes, geometric structure, route, span length,

bridge type, connection to the adjacent expressways and highways, which are to be defined based

on Vietnamese standards as described below. During this process, the opinions of the

implementing agency, PMU My Thuan, are to be confirmed.

(1) Number of Lanes

The necessary number of lanes is to be decided in accordance with the traffic demand

forecast, basically 20 years later from the inauguration of the Project, and based on the

Vietnamese standard TCVN 4054-2005. The consistency with the adjacent Trung Luon-My Thuan

and My Thuan-Can Tho expressways is also to be confirmed.

(2) Geometric Structure of Road

The geometric structure of the road is to be decided in accordance with Vietnamese

standard TCVN 5729-97. The consistency with the adjacent Trung Luon-My Thuan and My

Thuan-Can Tho expressways is to be confirmed.

(3) Route Selection

The route is to be selected in accordance with the comparison study considering

following items:

a) Geometric alignment

b) River width

c) Control points to be avoided, such as transmission line towers and important cultural

assets

d) Numbers of affected households

e) Distance from power lines

(4) Span Length

The span length is determined considering the following aspects:

a) River width

b) Depth of river bed

c) Scouring of river bed

(5) Bridge Type Selection

The bridge type is selected considering the following aspects:

a) Applicability to required span Length

b) Construction cost

c) Workability in construction method

d) Aesthetic preference

e) Facility in maintenance

(6) Connections to Adjacent Expressways and Highways

The connections to adjacent expressways and highways are defined considering the

following items:

a) Progress of construction of the adjacent expressways, and

b) Results of traffic demand forecast.

3. Outline of the Project

(1) Route and Bridge Site

The Project starts at the beginning of the approach road to existing My Thuan Bridge,

where the planned Trung Luong-Can Tho Expressway will be connected. On the right bank of the

river, or the southern side, there are no specific objects to be avoided and thus, the routes are

selected to minimize the total cost.

In planning the bridge routes, existing parallel power lines and houses clustered around

the old ferry terminal must be avoided.

The route alternative selected by TEDI’s FS on Second My Thuan Bridge, Alternative 1,

passes through the old ferry terminal area and many houses (309 houses) need to be relocated.

Alternative 2, which can be obtained by shifting Alternative 1 slightly to the power line side, does

not pass through the old ferry terminal area hence, the number of affected houses can be reduced

to 159. Alternative 3, which is at the east side beyond the two parallel power lines, has the shortest

span over the river, or about 500 m, passing over 180 houses. Advantages and disadvantages of

these three alternatives are compared.

It becomes clear that in Alternative 3, the northern approach road from the starting point

needs to pass through the power line towers. Therefore, a curved section must be introduced to the

approach road and the side span of the main bridge. This, however, is unfavorable for planning the

main bridge with a very long span length. The side span needs to be exactly behind the center

span and on the straight line from the center span, to work as a counter weight of the center span.

Alternative 2 has enough clearance of about 100 m from the power line and there should

be no problems in constructing the tower for a cable-stayed bridge. Moreover, the construction

cost of Alternative 2 is close to that of Alternative 1, while the latter will affect more houses. From

these considerations, Alternative 2 is selected as the most favorable route for the construction of

the bridge.

Figure S-2 shows the plan for the three alternative routes for the Second My Thuan

Bridge.

Source: Study Team

Figure S-2 Alternative Routes for the Second My Thuan Bridge (Upstream is on Left Side)

(2) Selection of Bridge Types

Considering the depth of the river bed, underwater foundations are not favorable. Thus,

introducing a center span of 550 m in Alternative 2 is recommended.

Five bridge types, namely an arch bridge, a suspension bridge, and three cable-stayed

bridges, which can all be considered to achieve a span length of 550 m, were compared. The

cable-stayed bridge alternatives for comparison consist of an A-shaped tower 2-edge girder type

(or the Nhat Tan Bridge type), a single column tower 4-edge girder type, and a steel two box

girder type.

Because the construction of arch and suspension bridges are more costly than

cable-stayed bridges, only the three types of cable-stayed bridge were compared further.

Construction of the A-shaped tower 2-edge girder type and single column tower 4-edge

girder type are realized to be less costly than the steel two box girder type. Furthermore, single

column tower 4-edge girder type gives an impression of a new appearance.

Consequently, the two types of edge girder cable-stayed bridge are selected, as shown in Figure

S-3 and Figure S-4. Out of these two bridge types, the single column tower 4-edge girder type is

most favorable because of its new impression.

Figure S-3 Side view of the Edge Girder Cable-Stayed Bridge

A-shaped tower 2-edge girder

cable-stayed bridge

Single column tower 4-edge girder

Cable-stayed bridge Source: Study Team

Figure S-4 Selected Two Types of Cable-Stayed Bridge

(3) Outline of Expressway Facilities

Outline of the expressway facilities is summarized in the table below.

Table S-1 Outline of Expressway Facilities

1 Project Length 4.05 km (Beginning Point at Km. 103+700 in Tien Giang Province, Ending Point at Km. 107+750 in Vinh Long Province)

2 Road Classification Expressway Class A 3 Design Speed 120 km/hr for approach road, 100 km/hr for main bridge

4 Road Width 33 m (Carriageway: 6@3.75 m, Emergency Stopping Lane: 2@3.0 m, Inner Safety Strip: 2@0.75 m, Shoulder: 2@1.0 m, Median: 1.0 m)

5 Navigation Clearance 110 m x 37.5 m, 300 m x 30 m 6 Span Length of Main Bridge Center Span: 550 m, Side Span: 240 m 7 Foundation of Main Bridge Bored Pile (Diameter=2.5 m, Length=90 m) 8 Approach Bridge Span Length: 40 m, super-tee girder 9 Foundation of Approach Bridge Bored Pile (Diameter=1.2 m, Length=60 m)

10 Interchange 1 interchange at end point connect to NH 80 with toll gate 11 Bridge 1 bridge with a length of 38 m, 1 overpass bridge at interchange with length of 3@40 m 12 Cross Structures 1 box culvert 2@4.5 m x 3.2 m, 1 box culvert 2@2 m x 4 m 13 Softground Soil Section Approximately 1.7 km 14 Toll Gate 1 Toll Gate at interchange, 1 toll management office

Source: Study Team

Figure S-5 shows the project alignment plan, while Figure S-6 shows the typical road

cross section.

My Thuan BridgeNH1

HCMC Can Tho

Main Bridge

240+550+240=

1,030m

Approach Bridge

18@40=

720m

Approach Bridge

18@40

= 720m

Approach Road

1,260m

Approach Road

320m

Project Length

4,050m

Box Culvert

2@4.5 x 3.2m

Bridge

L=38m

Box Culvert

2@2 x 4m

Interchange with

Toll Gate

My Thuan BridgeNH1

HCMC Can Tho

Main Bridge

240+550+240=

1,030m

Approach Bridge

18@40=

720m

Approach Bridge

18@40

= 720m

Approach Road

1,260m

Approach Road

320m

Project Length

4,050m

Box Culvert

2@4.5 x 3.2m

Bridge

L=38m

Box Culvert

2@2 x 4m

Interchange with

Toll Gate

Source: Study Team

Figure S-5 Plan of the Project

Source: Study Team

Figure S-6 Typical Cross Section

The main road consists of 3x3.75 m lanes carriageways, 3.0 m emergency lanes, 1.0 m

median, 0.75 m inner safety strip, and 1.0 m shoulder lane per direction, consequently requiring a

total width of 33 m. Meanwhile, frontage road, which will be constructed to maintain local

people’s traffic, consists of a one lane 3.5 m carriageway and two shoulder 1 m wide shoulders,

necessitating a total width of 5.5 m.

Demarcation line is set at the toe of embankment of the frontage road, or 10 m from the

toe of embankment of the main road. The right of way is set 50 m from the toe of embankment of

main road in accordance with Decree No. 11/2010/ND-CP dated 24th of February 2010.

Figure S-7 shows the proposed arrangement of the toll gate for closed toll collection

system.

Toll Gate at Rampway

Toll Gate at Main Route

NH80NH30

Source: Study Team

Figure S-7 Plan of Toll Gate

(4) Evaluation of Environmental and Social Impacts

Anticipated Impact resulting from the Project: The impacts resulting from the project

were studied based on the secondary information acquired from relevant authorities and

field surveys. With these findings, the JBIC Environmental Check List was filled out

in order to identify the type and degree of impacts. As a result, the main potential

environmental impacts of the project are summarized as follows:

- The most significant negative impacts will associate with the pre-construction phase

resulting from land acquisition, such as resettlement of people, relocation of fixed assets,

and compensation for loss.

- Although the impact is limited during the construction phase, air, water, vibration, and

noise pollution resulting from construction activities will cause adverse effects on

natural environment and society within the proposed project area.

Project Area

- During operation, the impacts associated with increased transport density are the

concerns. These impacts would worsen the air quality, noise and vibration pollution

and accidents.

Based on the satellite image, the total area for land acquisition was estimated to be

71.2 ha, and the number of affected fixed assets, such as houses and huts, was

confirmed to be 159. The type of fixed assets shall be identified and the number of

affected households shall be finalized for further study. The land use type of the final

route is shown in Table S-2.

Table S-2 Land Use

Residential Land (m²)

Agricultural Land (m²)

Rice Field (m²)

River (m²)

Road (m²)

Others (m²)

Total (m²)

Final Route 28,969 635,584 0 41,862 3,345 2,354 712,114 Source: Study Team

Actions Taken by Project Proponent for Further Study: An environmental impact

assessment (EIA) shall be conducted to fulfill the requirement of the GOV and

JETRO/JICA guidelines. The following are the actions that should be taken by the

project proponent:

EIA Related Agenda:

- Conduct an EIA and prepare reports in compliance with the requirements of the

GOV and JETRO/JICA guidelines on environmental and social considerations.

- Hold public consultation meetings with project-affected people (PAP) and reflect in

EIA reports the comments obtained from the meetings.

- Submit the EIA reports to the Ministry of Natural Resources and Environment

(MONRE) for certification.

- Submit the certified EIA report together with other F/S related documents to the

GOV for project approval.

RAP Related Agenda:

- Prepare a preliminary resettlement action plan (RAP) in compliance with the

requirement of the GOV and JETRO/JICA guidelines on environmental and social

considerations.

- Submit the preliminary RAP together with other F/S related documents to the GOV

for project approval.

- Update the information on PAP in the RAP in conducting detailed measurement

survey.

- Hold public consultation meetings with PAPs and finalize the RAP.

- Submit the finalized RAP to the District People’s Committee for approval

- Deliver the compensation and support according to the RAP and acquire the land

for the project.

4. Implementation Program (I/P)

The I/P in this Study is proposed based on following assumptions:

• Special Terms for Economic Partnership (STEP) Scheme of Japanese ODA Loan is

applied.

• Consulting services for the detailed design and tender assistance are supported by

Japanese grant.

• Construction period is 36 months.

Table S-3 shows the implementation program, assuming that common practice and

standard time of procurement procedures under Japanese ODA Loan with STEP scheme are

applied.

Table S-3 Proposed Implementation Schedule

Months 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Procurement of D/D Consultant 2

Detailed Design (D/D) 12

Procurement of T/A Consultant 2

P/Q of Contractors 3

Preparation of Tender Document 3

Tender Period 2

Tender Evaluation 3

Concurrence of Tender Evaluation 1

Negotiation of Contract 2

Concurrence of Contract 1

Procurement of C/S consultant 9

Land Acquisition 24

Resettlement 24

Resettlement Monitoring 36

Construction 36 Inauguration

Defect Liability Period 24

5th Year 7th Year6th Year1st Year 2nd Year 3rd Year 4th YearMajor Items

Source: Study Team

5. Feasibility of Japanese ODA

(1) Traffic Demand Forecast

Table S-4 summarizes the results of traffic demand forecast up to the target year 2040.

Table S-4 Result of Traffic Assignment (PCU/Day)

Target

Year

Future Traffic Volume

Second My Thuan Bridge IC Direction to NH80

NH1(Existing My Thuan

Bridge) NH80

2020 55,308 9,782 21,489 13,472

2030 79,799 22,113 35,357 26,354

2040 84,521 19,179 41,606 28,621

Source: Study Team

Traffic volumes for the years 2020 and 2030 is expected to be 55,000 PCU/day and

80,000 PCU/day, respectively. In 2040, traffic volume of Second My Thuan Bridge is expected to

reach 85,000 PCU/day, with only 5,000 PCU/day difference from that of 2030. This results to the

construction of new bridges at that time.

(2) Economic and Financial Analysis

(a) Economic Analysis

For the purpose of the economic evaluation, the following preconditions were

established:

Price Level: Constant 2010 prices

Evaluation Period: 30 years after the first opening to traffic

Disbursement Schedule: Assumed in accordance with the construction plan

Residual Value: No residual values were counted

Opportunity Cost of Capital (Discount Rate): 12%

The cost and benefit streams are presented in the table in the next page. The following

indicators for evaluation were calculated based on the traditional discount cash flow method

(DCF):

Economic Internal Rate of Return (EIRR)

Net Present Value (NPV)

Benefit Cost Ratio (B/C)

The results of evaluation are summarized in Table S-5

Table S-5 Results of Economic Evaluation

Evaluation Indicators Values EIRR NPV(*) B/C(*)

18.07% USD791.87 Million

2.92 (*): Discount Rate = 12%

Source: Study Team

(b) Financial Analysis

Toll revenues were calculated using the following formula:

(Constant Basic Toll Rate) x (Traffic Demand of Base Case)

Toll rate is determined in accordance with Circular No.90/2004/TT-BTC and toll rate of

each vehicle type is calculated from ratio of PCU.

FIRR was calculated as 3.45%.

It is noted that FIRR of 3.45% is not enough to attract private sectors to invest in this

project for both BOT and PPP schemes. However, although financial return is not so high, this

project is determined to be economically feasible and is expected to generate positive economic

impacts. Therefore, it should be implemented under the scheme of public investment.

6. Technical Advantage of Japanese Companies

Japanese companies have experience in construction of many large scale steel

cable-stayed bridges, steel concrete composite cable-stayed bridges and steel suspension bridges

not only in Japan but also around the world. They have also earned extensive experience in

construction of longer span bridges. To assure the wind resistance of the long span bridges not

only at the completion stage but also during the construction stage, the wind tunnel tests are

indispensable. Japanese companies have many experiences for this kind of tests, too.

In the construction of long span bridges, cable-related technology is the most important.

Parallel wire strand (PWS) cables, which are often used as materials for cable-stayed bridges,

were developed by Japanese companies. This type of cable has a very high sectional efficiency

and its cross-section area is smaller than that of the conventional cables developed in Europe,

while it possess the same tensile strength. For long span cable-stayed bridges, the static wind load

on the cables becomes considerably large. PWS cables can reduce induced wind loads, which can

be great merit over the conventional cables.

This bridge is planned to be constructed over the very soft ground area and the large

diameter in-situ bored piles will be employed. For the construction of these piles, large

construction machines which utilize Japanese technology are indispensable.

From these facts, it can be said that the Japanese companies have an advantage compared

to those of other countries.

7. Schedule for Project Formation and its Risks

(1) Schedule for Project Formation

The actions needed for project formation are as follows:

1) EIA should be conducted for approval by the MONRE.

2) MOT should propose to Ministry of Planning and Investment (MPI) to include the

project in priority list for investment.

3) MPI should recommend the project to be included in the priority list for approval

from the Prime Minster.

4) GOV should request the Government of Japan (GOJ) for ODA Loan for the

project after the F/S draft final report is submitted.

5) Following GOV’s request, GOJ will send JICA’s fact finding mission to Vietnam

to sign the Memorandum of Understanding (MOU) for JICA’s Preparatory Study

for ODA Loan.

6) At the end of JICA’s Preparatory Study, GOJ will send JICA’s follow-up study

mission to discuss the conditions for ODA Loan.

7) GOJ then decides and pledges the application of ODA Loan for the Project,

followed by the signing of exchange of notes (E/N).

8) JICA and GOV will finally negotiate for Japanese ODA Loan, followed by the

signing of loan agreement (L/A).

Table S-6 shows the implementation program, assuming that common practice and

standard time of procurement procedures under Japanese ODA Loan with STEP scheme are

applied.

Table S-6 Proposed Implementation Schedule including Project Formation Period

Months 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

1 SAPROF Study 3

2 Pledge

3 Exchange Note & Loan Agreement (E/N, L/A)

4 Procurement of D/D Consultant 2

5 Detailed Design (D/D) 8

6 Procurement of T/A Consultant 2

7 P/Q of Contractors 3

8 Preparation of Tender Document 3

9 Tender Period 2

10 Tender Evaluation 3

11 Concurrence of Tender Evaluation 1

12 Negotiation of Contract 2

13 Concurrence of Contract 1

14 Procurement of C/S consultant 9

15 Land Acquisition 24

16 Resettlement 24

17 Construction 30 Inauguration

18 Defect Liability Period 24

2015 2016 2017Major Items

2011 2012 2013 2014

Source: Study Team

(2) Risks against the Project Formation

The risks against the project formation are as follows:

1) Comparative Priority with Other Construction Projects

In Vietnam, there are many projects under the priority list. There are four other major

bridge construction projects in Mekong River Region planned for implementation by PMU My

Thuan. These include Cao Lanh Bridge along HCMC Highway (Tien River, 6 km upstream of My

Thuan Bridge); Vam Cong Bridge along HCMC Highway (Hau River, upstream of Can Tho

Bridge); Co Chien Bridge along NH 60 (Tien River, downstream of My Thuan Bridge); and Dai

Ngai Bridge (Hau River, downstream of Can Tho Bridge) along NH 60. Compared to these bridge

construction projects, the Project does not stand out because of the existing of My Thuan Bridge

along NH1. Therefore, there is a need to emphasize the necessity and significance of the Project in

order to be included in the priority list for investment.

2) Limited or Shortage of Budget

Amount for Japanese ODA Loan is limited each year while many projects are queueing

for Japanese ODA Loan application. In addition, the estimated project cost for this project is

nearly USD 600 million, which is quite big compared to other projects. Therefore, there is a risk

of delays due to limited budget.

3) Progress of Implementation of Adjacent Expressways

In case that the project implementation of the Trung Luong–My Thuan and My

Thuan–Can Tho expressways delays or stops, the priority of the Project will be lessened. This will

also result in the delay of project formation. Therefore, the progress monitoring on the

implementation of the adjacent expressways is needed.

4) Delay in Study and Assessment

Delays are possible in conducting and approving F/S, EIA, and Preparatory Study.

Therefore, there is a need to select competent consultants for smooth coordination and

cooperation with stakeholders.

5) Other Risks

In addition to above risks, several risks in the country such as change of law, cancellation

of approval, and political violence are to be considered.

8. Location of the Project

Location of the project is shown in Figure S-8 and S-9.

Can Tho

Dau Giay

Ca Mau

Da Lat

Vietnam

Laos

Cambodia

Thailand

Hanoi

Ho Chi Minh

Ho Chi Minh City

China

Study Area

An Phu

Trung Luong

An Lac

R.R.2

　Expressway (North-South Expressway)

　　　　　　　HCMC - LT-DG (under construction)

Ben Luc - Long Than (F/S)

　　　　　　　An Lac - Trung Luong (completed)

　　　　　　　Trung Luong - My Thuan (under construction)

My Thuan - Can Tho (F/S)

　Other Classified Road

　　　　　　　Saigon East West Highway (partial completion)

An Phu - R.R.2 Urban Road (D/D)

　　　　　　　National Highway No.1

SCALE

0 10 20 30 km

Vung Tau

Bien Hoa

My Thuan

LEGEND

Long Thanh

Ben Luc

Figure S-8 Project Location Map (1)

My Thuan Bridge

Sa Dec

Trung Luong - My Thuan

Expressway

SCALE

0 500 1000 1500m

Key Map

HCMC

Vinh Long

NH80

NH1

NH30

Vinh Long

Tien River

HCMC

Cao Lanh

Can Tho

Study Area

4.05km

My Thuan - Can Tho

Expressway

Figure S-9 Project Location Map (2)