The Republic of the Union of Myanmar Ministry of Construction Department of Highways

Yangon – Mandalay Expressway Project U Kyi Zaw Myint Deputy Director General Department of Highways Ministry of Construction Contents

Background 01 Necessity of the Project 02 Implementing Authorities 03 Technical Standards 04 Upgrading to international standard 05 06 Financial Solution 1. Background Mandalay Yangon-Mandalay Expressway is connecting two biggest cities, Yangon-Mandalay and the Myanmar’s Capital Naypyitaw. The Yangon- Mandalay Expressway Project is conceived with the idea to not only reduce the travel time between Yangon and Mandalay but also to open up avenue for Industrial and Urban development of the core regions of Myanmar. The Expressway cuts in half the Naypyitaw travel time from Yangon to Mandalay, and lies near the NyaungOo city that is home to Myanmar’s top tourist attraction, World Heritage Bagan. The Yangon-Mandalay Expressway corridor is bound to have huge impact on the economic and industrial growth not only of Mandalay Division but adjoining divisions e.g. Pegu, NayPyi Taw, Yangon-Mandalay Magway and Sagaing. It is one of the Expressway (From Yangon to potential expressway in Myanmar which will Mandalay) (589 km) increase socio-economic development of the Mandalay people and logistic opportunities along the Naypyitaw Yangon expressway. Yangon 2. Necessity of the Project  The Yangon Mandalay Expressway Project will minimize the travel time from Yangon to Mandalay .  The project is a high grade Expressway on north-south direction connects to the capital, it will enlarge the coverage of national highway network. It will fast moving corridor to minimize the travel time from Yangon to Mandalay. By using expressway, the journey time from Yangon to Mandalay shortened from 13 hours by train or 16 hours by former highway to 7 hours. And relieve traffic congestion on existing Yangon-Taungoo-Mandalay Highway.

 The project can get substantially improve national Social and Economic Development The Project can attain direct improvement for National Security, Social and Economic. It will promote the exchanges among the regions and states of the country and facilitate the economic and trade exchanges with neighboring countries to develop mutual benefit. And also open up avenue for industrial and urban development of the region and provide the base for convergence to tourism and other allied industries. The Yangon-Mandalay Expressway corridor is bound to have huge impact on the economic and industrial growth not only of Mandalay Division but adjoining divisions e.g. Pegu,NayPyi Taw, Magway and Sagaing. 2. Necessity of the Project

 This project is necessary for improving the national road network of Myanmar This project is necessary for the future planning and development of Myanmar and even the whole Association of Southeast Asian Nations(ASEAN) and Asian road network, and is in line with a new round of planning and development in Myanmar. This project will further enhance the connectivity of north-south highway transport trunk lines in Myanmar, connecting three important cities (Yangon, Naypyidaw and- Mandalay) and making it the most important north-south traffic corridor in the country.

 The Project will promote the development of tourism Tourism resources are outstanding advantages of Myanmar, The Expressway cuts in half the travel time from Yangon to Mandalay, and lies near the NyaungOo city that is home to Myanmar’s top tourist attraction, World Heritage Bagan. 3. Implementing Authorities and Opened Dates

The 589 km long Yangon-Mandalay Expressway has been developed by Public Works, Ministry of Construction and Directorate of Military Engineering, Ministry of Defence.

The Yangon-Mandalay Expressway Project has been implemented with three stages:

(a) Yangon-Nay Pyi Taw (202miles 1 furlong)(325.12km) opened 25 March 2009.

(b) Nay Pyi Taw-Sagar Inn (150miles 5 furlongs) (242.28km) opened 29 December 2010.

(c) Sagar Inn-Mandalay (13miles 5 furlongs) (21.92km) was formally inaugurated on 23 Nov, 2011 by the Ministry of Construction and thrown open to the public. Existing Cross Section

▪ Lane 4 Lanes ▪ Formation width 200 ft (60.96m) ▪ Right of Way width 400 ft (121.92m) ▪ Median width 30 ft (9.14m) ▪ Concrete pavement width 50 ft (4 lanes x 12.5 ft) (15.24m) (4lanes×3.81m) ▪ 6” thk under layer concrete compressive strength 2000 psi ▪ 12 ” thk over layer concrete compressive strength 4000 psi ▪ Longitudinal gradient 3 % ▪ Side slope 1 : 1 1: 1.5 ▪ Design CBR 6 % ▪ Design Average daily traffic volume 5000 Nos. Future Traffic Growth Rate • The traffic growth rates of Yangon – Mandalay Expressway increased sharply between 2012 and 2015 due to the opening of the country’s automobile market.

• All citizens are allowed to import car since 7 July, 2012. The changes in car import regulation; there has been sharp increase in traffic growth rate during this period.

• However, the traffic growth rate maintain a stable growth of 9% by comparing traffic volume in 2015 (January to November) and 2016 (January to November).

• Our team cannot use TDF model to forecast future traffic growth because of many limited conditions such as poor historical data, very limited study time. Therefore, our team used trend analysis to forecast future traffic growth rates.

• So, from the available data which is started at 2012. But traffic growth rate between 2012-2013 is (6%), 2013- 2014 is (22%), 2014-2015 is (19%) and 2015 (January to November) and 2016 (January to November) is (9%) respectively. The following tables show the traffic growth rate results between 2026 and 2040.

Annual Growth Year 2026 2027 2028 2029 2030 Rate AADT 28545 30543 32681 34969 37417 7.0%

40000 37417 35000 34969 32681 30000 30543 28545 25000

20000

15000

10000

5000

0 2026 2027 2028 2029 2030 Traffic Growth Rate Result from 2026 to 2030 5. Upgrading According to the international expressway standard Technical Standard

▪ Formation width 200 ft (60.96m) ▪ Right of Way width 400 ft (121.92m) ▪ Median width 20 ft (6.14m) ▪ Median Shoulder 5 ft (1.5m) ▪ Concrete pavement width 2×3×12.5 ft (2×3×3.5m) ▪ 6” thk under layer concrete compressive strength 2000 psi ▪ 12 ” thk over layer concrete compressive strength 4000 psi ▪ Asphalt Concrete Overlay 3½ " (87.5mm) thk ▪ Longitudinal gradient 3 % ▪ Side slope 1 : 1 1: 1.5 ▪ Design CBR 6 % ▪ Design Average daily traffic volume 5000 Nos. 5. Upgrading According to the international expressway standard Estimated Costs (Yangon – Nay Pyi Taw Portion) Rate/km Estimation Cost Sr No. Particular Measurement (Million (USD)) (Million (USD)) Yangon-Naypyitaw Portion Road Section 1 3.5m width Widening Pavement Construction Work 260.12 km 2 1.5m width L.H.S Shoulder Construction Work 3 7.62m width Asphalt Concrete Paving Work 4 3.66m width Frontage Road Construction Work 5 Fencing 6 Road Furniture Work 7 Guard Rail Fixing Work 8 Interchanges 2.0 520.24 9 Traffic Management System (Traffic Information Center, ITS, ETC) Bridge Section 1 Widening Work (a) <15.24m Span Bridge 2 × 66 m (b) Between 15.24m and 54.86m Span Bridge 2 × 973 m (c) >54.86m Span Bridge 2 × 2117 m 2 Overhead Bridge Construction Work 2 × 5 Nos Total (Yangon-Naypyitaw) $520.24 Million 5. Upgrading According to the international expressway standard Estimated Costs (Nay Pyi Taw – Mandalay Portion) Rate/km Estimation Cost Sr No. Particular Measurement (Million (USD)) (Million (USD)) Naypyitaw-Mandalay Portion Road Section 1 3.5m width Widening Pavement Construction Work 264.2 km 2 1.5m width L.H.S Shoulder Construction Work 3 7.62m width Asphalt Concrete Paving Work 4 3.66m width Frontage Road Construction Work 5 Fencing 6 Road Furniture Work 7 Guard Rail Fixing Work 8 Interchanges 2.0 528.4 9 Traffic Management System (Traffic Information Center, ITS, ETC) Bridge Section 1 Widening Work (a) <15.24m Span Bridge 2 × 89.3 m (b) Between 15.24m and 54.86m Span Bridge 2 × 594 m (c) >54.86m Span Bridge 2 × 2117 m 2 Overhead Bridge Construction Work 2 × 1 Nos Total (Naypyitaw-Mandalay) $528.4 Million Total $1048.64 Million 6. Financial Solution  Public-Private Partnership Model A Portion of Equity Injection or GOV The advantages of this option are: Subsidies/ B Portion • Enhance the Implementation Grant/Equity – of Equity Myanmar Subject to Project FS Injection Investor/ ability of the Project through Government Consortium the Public-Private Cooperation. • Through Government Partial Funding Contribution to enable the Project into Financial

Viability. (e.g. Subsidies/Viable Loan Gap Funding.) Project Company Finance Bank • Government will bear certain Guarantee of Repayment Responsibility to Enhance the Minimum Traffic Value/Minimum Project Bankability and Reduce Revenue the End Users Usage Charge. Dividend Share Dividend A subject to FS Share B (e.g. Gov Guarantee for Myanmar Investor/ Minmum Revenue/Traffic.) Government Consortium Thank You!