Data Collection Survey for Southern Economic Corridor in Myanmar

Republic of the Union of Myanmar

Data Collection Survey For Southern Economic Corridor In Myanmar

Final Report

September 2016

Japan International Cooperation Agency (JICA)

Yachiyo Engineering Co., Ltd. Central Consultant Inc. 1R JR 16 - 044

Exchange Rate: March 2016 (Monthly Currency Conversion JICA, 2015) 1.00 MMK = ¥0.092 1.00 THB = ¥3.196

Data Collection Survey for Southern Economic Corridor in Myanmar

Table of Contents

Abbreviation 1. Outline ...... 1-1 1.1 Background ...... 1-1 1.2 Objectives and Study Area ...... 1-1 1.3 Study Schedule ...... 1-2 1.4 Site Survey Schedule ...... 1-3

2. Progress of Dawei Project ...... 2-1 2.1 Chronology of Dawei Project ...... 2-1 2.2 Outline of Initial Phase ...... 2-2 3. Issues and Improvement Measures for the Initial Phase Road Plan ...... 3-1 3.1 Background of the Initial Phase Road Plan ...... 3-1 3.2 Technical Issues and Improvement Measures for the Initial Phase Road ...... 3-3 3.3 Improvement Measures for Smooth Running of Heavy Vehicles ...... 3-11

4. Access Road Development in Full Phase ...... 4-1 4.1 Basic Policy for Development ...... 4-1 4.2 Demand Analysis ...... 4-2 4.3 Road Development Scenario ...... 4-4 4.4 Route Planning ...... 4-6 4.5 Tunnel ...... 4-15 4.6 Road Improvement Impact (Travel Time Saving) ...... 4-22 4.7 Rough Estimated Project Cost ...... 4-23 4.8 Traffic Control Plan ...... 4-26

5. Environmental and Social Considerations ...... 5-1 5.1 Natural Environment ...... 5-1 5.2 Land Acquisition and Resettlement ...... 5-15 5.3 Impact on the Republic of Myanmar ...... 5-20 5.4 Benefiting to the Communities along the Access Road ...... 5-22

6. Railway Plan ...... 6-1 6.1 Route Planning ...... 6-1 6.2 Structure Planning and Rough Cost Estimate...... 6-6 6.3 Railway Operation Plan ...... 6-11

Data Collection Survey for Southern Economic Corridor in Myanmar

7. Financial Analysis ...... 7-1 7.1 Financial Analysis for the Access Road ...... 7-1 7.2 Financial Analysis including the Railway Plan ...... 7-3 7.3 Financial Analysis for Alternative Case covered by Another SPC ...... 7-7 7.4 Stage-wise Construction Plan ...... 7-8

8. Recommendations and Further Studies ...... 8-1 8.1 Development Scenarios for the Southern Economic Corridor ...... 8-1 8.2 Action Plan ...... 8-2 8.3 Recommendations and Further Studies ...... 8-3

Appendices 1. Summary (Power Point) ...... App1-1 2. Tunnel Technology ...... App2-1

Data Collection Survey for Southern Economic Corridor in Myanmar

Figure List

Figure 1.2.1 Study Area ...... 1-2 Figure 1.3.1 Study Flow ...... 1-3 Figure 2.2.1 Plan of Initial Phase Development of DSEZ ...... 2-2 Figure 3.1.1 Location of the Initial Phase Road ...... 3-1 Figure 3.2.1 Typical Cross-section (2-Lane road) ...... 3-4 Figure 3.2.2 Typical Cross-section (4-Lane road) ...... 3-4 Figure 3.2.3 Relation between Vertical Gradient and Traveling Speed of Heavy Vehicles ...... 3-5 Figure 3.2.4 Composition of Vertical Gradient of Initial Phase Road ...... 3-6 Figure 3.2.5 Improvement of the Initial Phase Road for Temporary Access Road (Gradient) ...... 3-7 Figure 3.2.6 Transportation and Logistics Bottlenecks of the Initial Phase Road .... 3-7 Figure 3.2.7 Annual Rainfall by Region in Myanmar (average for a decade) ...... 3-9 Figure 3.2.8 Monthly Rainfall in Dawei (average for a decade) ...... 3-10 Figure 3.3.1 Improvement Measures for Smooth Running of Large Vehicles ...... 3-13 Figure 3.3.2 Improvement Location for Smooth Driving of Heavy Trucks ...... 3-13 Figure 3.3.3 Typical Cross-sections of Bypass ...... 3-14 Figure 3.3.4 Strategic Plan of Truck Lane ...... 3-14 Figure 4.1.1 Location of Southern Economic Corridor ...... 4-1 Figure 4.1.2 Basic Policy for Access Road Development in Full Phase ...... 4-1 Figure 4.2.1 Necessary infrastructure and Traffic Demand (estimated by ITD) ...... 4-3 Figure 4.2.2 Necessary infrastructure and Traffic Demand (80% of ITD estimate) ...... 4-3 Figure 4.3.1 Sub Option Setting ...... 4-5 Figure 4.4.1 Typical Cross-section of Detour Road ...... 4-6 Figure 4.4.2 Development Plan of Ka Loat Htar Reservoir ...... 4-9 Figure 4.4.3 Results of Alternative Routes Comparison (1/2) ...... 4-13 Figure 4.4.4 Results of Alternative Routes Comparison (2/2) ...... 4-14 Figure 4.5.1 Topographic and Geological Outlines ...... 4-16 Figure 4.8.1 Proposed Location of Each Traffic Control Plan ...... 4-26 Figure 5.1.1 Location of Tanintharyi Region and Dawei Township...... 5-1 Figure 5.1.2 Regional Rainfall Data in Myanmar ...... 5-2 Figure 5.1.3 Forest Conservation Areas and National Parks in Myanmar ...... 5-5 Figure 5.1.4 Key Biodiversity Areas (KBA) in Myanmar ...... 5-7 Figure 5.1.5 Endangered Mammals (Category-IB and II) Inhabits ...... 5-8 Figure 5.2.1 Major Communities along the DSEZ Access Road ...... 5-18 Figure 6.1.1 Railway Connection of Southern Economic Corridor (Dawei – Bangkok) ...... 6-1 Figure 6.1.2 Truck Clearance Sample for Rail Structure ...... 6-2 Figure 6.1.3 Width of Base Level ...... 6-2

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Data Collection Survey for Southern Economic Corridor in Myanmar

Figure 6.1.4 Route Alignment Map of Railway ...... 6-3 Figure 6.1.5 Route Planning (1/2) ...... 6-4 Figure 6.1.6 Route Planning (2/2) ...... 6-5 Figure 6.2.1 Typical Layer Drawing ...... 6-6 Figure 6.2.2 Typical Drawing for Cut Section ...... 6-6 Figure 6.2.3 Typical Drawing for Viaduct ...... 6-7 Figure 6.2.4 Typical Drawing for Mountain Tunnel ...... 6-7 Figure 6.2.5 Truck Condition on Thailand Side ...... 6-8 Figure 6.2.6 Truck Layout of Cargo Station ...... 6-8 Figure 6.2.7 Layout Plan by Structure Type ...... 6-9 Figure 6.3.1 Operation Diagram (One Crossing Point) ...... 6-11 Figure 6.3.2 Image of Container Loading ...... 6-12 Figure 7.1.1 Sensitivity Analysis (interest rate) ...... 7-2 Figure 7.1.2 Sensitivity Analysis (Project Costs and Revenue) ...... 7-3 Figure 8.1.1 Development Scenarios for the Southern Economic Corridor ...... 8-2 Figure 8.2.1 Action Plan for Development of the Southern Economic Corridor ...... 8-3

Data Collection Survey for Southern Economic Corridor in Myanmar

Table List

Table 1.2.1 Study Team Members ...... 1-2 Table 1.4.1 1st Site Survey Schedule ...... 1-4 Table 1.4.2 2nd Site Survey Schedule ...... 1-5 Table 1.4.3 3rd Site Survey Schedule ...... 1-5 Table 2.1.1 Chronology of Dawei Project ...... 2-1 Table 2.2.1 Components of Initial Phase Development ...... 2-3 Table 3.1.1 Summary of the Initial Phase Road Plan ...... 3-2 Table 3.1.2 Thailand’s DOH Design Standard ...... 3-2 Table 3.2.1 Level of Southern Economic Corridor Development ...... 3-4 Table 3.2.2 Comparison of Road Design Standards of Countries/Regions ...... 3-5 Table 4.2.1 Future Cargo Volume of Dawei Port by METI ...... 4-2 Table 4.3.1 Road Development Scenario ...... 4-4 Table 4.4.1 Asean Class I (Asean Highway Standard) ...... 4-6 Table 4.4.2 Summary of Alternative Routes ...... 4-7 Table 4.4.3 Comparison of Alternative Routes ...... 4-12 Table 4.5.1 Geological Profile of the Bypass tunnel ...... 4-17 Table 4.5.2 Topographical and Geological condition of Bypass-tunnel and Full-phase road ...... 4-20 Table 4.6.1 Effect of Improvement Measures (reduction of travel time) ...... 4-22 Table 4.7.1 Base Cost of Construction ...... 4-23 Table 4.7.2 Estimated Project Cost by Options ...... 4-25 Table 4.8.1 Components of Traffic Control Plan ...... 4-26 Table 5.1.1 Population by Areas in Tanintharyi ...... 5-3 Table 5.1.2 Number of Refugees and IDPs ...... 5-3 Table 5.1.3 List of Natural Conservation Areas in Myanmar ...... 5-6 Table 5.1.4 Endangered Species listed in Red List of IUCN (Number) ...... 5-8 Table 5.1.5 Scoping Results ...... 5-12 Table 5.1.6 Study Items to be considered in EIA Report...... 5-14 Table 5.1.7 Parameters to be monitored...... 5-15 Table 5.2.1 Village Profile along the DSEZ Access Road ...... 5-17 Table 6.1.1 Geometric Conditions for Railway Alignment ...... 6-1 Table 6.2.1 Structure Type Volume ...... 6-9 Table 6.2.2 Unit Price for Structure Type ...... 6-10 Table 6.2.3 Cost Breakdown for Structure Type ...... 6-10 Table 6.3.1 Loading Capacity of Container Type (Double Truck: 120pcs/day/One-way) ..... 6-12 Table 7.1.1 Fare Level of Option 1 ...... 7-1 Table 7.1.2 Fare Level of Options 2 and 3 ...... 7-1

Data Collection Survey for Southern Economic Corridor in Myanmar

Table 7.1.3 Results of Financial Analysis for the Access Road ...... 7-2 Table 7.2.1 Railway Demand Forecast (Freights) ...... 7-3 Table 7.2.2 Railway Demand Forecast (Passengers) ...... 7-4 Table 7.2.3 Estimation of the Railway Project ...... 7-5 Table 7.2.4 Financial Analysis Results...... 7-5 Table 7.2.5 Sensitivity Analysis (Case 2) ...... 7-5 Table 7.2.6 Financial Analysis Results for the Access Road and Railway ...... 7-6 Table 7.3.1 Financial Analysis for the Case of new Concession Agreement ...... 7-7 Table 7.4.1 Result of the Stage-wise Construction Plan (Equity IRR) ...... 7-8

Data Collection Survey for Southern Economic Corridor in Myanmar

Abbreviation (1) Words Description AC Asphalt Concrete AH Asian Highway ASEAN Association of South East Asian Nations BOT/BTO Build-Operate-Transfer / Build-Transfer-Operate BP By-Pass CCGT Combined Cycle Gas Turbine CIQ Custom-Immigration-Quarantine CM/JCM Coordination Meeting / Joint Coordination Meeting DOH Department of Highways, Thailand DSEZ Dawei Special Economic Zone EIA Environmental Impact Assessment E/S Engineering Services FFI Fauna & Flora International FIRR Financial Internal Ratio of Return F/S Feasibility Study GDP Gross Domestic Products GT Gas Turbine IDP Internally Displaced Person IRR Internal Rate of Return ISO International Standard Organization ITD Italian Thai Development IUCN International Union for Conservation of Nature and Natural Resources JICA Japan International Cooperation Agency KBA Key Biodiversity Area KNLA Karen National Liberation Army KNU Karen National Union METI Ministry of Economy, Trade, and Industry MOC Ministry of Construction, Myanmar MOECF Ministry of Environment and Conservation Forest, Myanmar MOU Memorandum of Understanding M/P Master Plan NATM New Austrian Tunnel Method NEDA Neighboring Countries Economic Development Cooperation Agency, Thailand NESDB National Economic and Social Development Board, Thailand PMO Project Managing Office

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Data Collection Survey for Southern Economic Corridor in Myanmar

Abbreviation (2) Words Description PPP Public Private Partnership R&B Roland Berger） RC Reinforced-Concrete ROW Right of Way SEZ Special Economic Zone SPC Special Purpose Company SPV Special Purpose Vehicle TEU Twenty feet Equivalent Unit TOR Terms of References UNEP United Nation Environmental Plan UNHCR United Nations High Commissioner for Refugees WCMC World Conservation Monitoring Centre WCS Wildlife Conservation Society WWF World Wide Fund

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Data Collection Survey for Southern Economic Corridor in Myanmar

1. Outline

1.1 Background

As the economic sanction on Myanmar is being lifted, foreign enterprises recognize a promising possibility of low and abundant labor market in the country and express a strong investment interest. Under such condition, the Myanmar government has accelerated development of a Special Economic Zone (hereinafter referred to as “SEZ”) to promote industrialization by attracting foreign investment from all over the world. The governments of Myanmar and Thailand agreed development of the Dawei SEZ (hereinafter referred as “DSEZ”) in 2008, and in 2012 they founded an SPV (Dawei Development Company) financed by both countries for promoting the project. In the Initial Phase Development which started in 2014, the two countries have pushed forward the preparation for development of infrastructures of the 27 km2 industrial park (zone, estate) and surrounding area. Myanmar, Thai, and Japanese Governments signed a memorandum on the DSEZ development on July 4, 2015. It was confirmed that the development is to be undertaken in cooperation of these three countries. As one of the principal support elements by Japanese side, implementation of the survey on the Southern Economic Corridor (SEC) is clearly stated. The planned SEC route involves many issues and problems including that of the vertical grade, sharp curves, and slope protection. Besides, it is necessary to consider widening the road to accommodate the future traffic demand, and environment and social considerations.

1.2 Objectives and Study Area

1.2.1 Objectives

The project has the following three objectives:

1. Collection and analysis of the existing information on Tanintharyi Region of Myanmar in which the Southern Economic Corridor passes, 2. Study on how the Japanese cooperation should be in the future toward development as an international corridor, and 3. Provision of the information for use when the Myanmar Government considers implementation of the project.

1.2.2 Study Area

The Southern Economic Corridor is a highway of about 140 km running from Dawei to Hti Khee, near the border with Thailand. The Myanmar Government has developed a local road (MOC section) connecting the city of Dawei with Myitta. The Southern Economic Corridor functions as a local trunk road for the Tanintharyi Region and the city of Dawei in addition to the international trunk road for logistics flow related to the Dawei SEZ. This study will make a new proposal on an optimum route utilizing effectively the existing roads and taking into account the minimum required functions, terrain conditions, etc. for the Southern Economic Corridor. The target includes not only the area along the Southern Economic Corridor, but also the MOC road section. The related section in Thailand, for which the plan has already been completed, will not be covered by this study. However, the section between Myanmar border and Kanchanaburi will be covered as a part of the study area of the railway development analysis. The target

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Data Collection Survey for Southern Economic Corridor in Myanmar area of the study is shown in Figure 1.2.1.

1-lane bridge /To Mawlamyaing /NR8

Large scaled cut slope /Myitta

Steep Grade Local Road（MOC） Temporary Road (ITD) /Dawei

NR 8 Mining site Typical section /Thai Boarder

/To Bangkok Source: Study Team Figure 1.2.1 Study Area

1.2.3 Study Team

The study will be implemented by JV of Yachiyo Engineering and Central Consultant. The composition of the study team is shown in Table 1.2.1.

Table 1.2.1 Study Team Members Name Position Firm Horii Toshiaki Team Leader / Economic Analysis / Yachiyo Engineering Co., Ltd. Demand Analysis Ando Shigeru Road Planning Central Consultant Inc. Yamauchi Yasuhiro Environmental and Social Consideration / Yachiyo Engineering Co., Ltd. Logistics Planning Nishimuta Toshihiko Underground Structure I Yachiyo Engineering Co., Ltd. Furuichi Hisashi Underground Structure II Yachiyo Engineering Co., Ltd. Tanaka Naoki Railway Planning Yachiyo Engineering Co., Ltd.

1.3 Study Schedule

The survey started in September, 2015 and the final report was submitted in September, 2016. In this period, three field surveys were done, including the second field survey conducted by the joint team from Thailand and Myanmar. Figure 1.3.1 shows the flow of overall survey.

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Data Collection Survey for Southern Economic Corridor in Myanmar

2015 2016 SEP. OCT. NOV. DEC. JAN. FEB. MAR. - AUG.

1st 1st 2nd 2nd 3rd 3rd STAGE Survey Work in Japan survey Work in japan Survey Work in Japan

Review for Development Plan, Relevant Plan, and Progress

Demand Forecast

FLOW Impact Analysis Provision & Report of F/R

Planning for DSEZ Access Road Discussion for DF/R for Discussion Explanation of of IC/R Explanation Consideration for Environmental & Social Issues

REPORT IC/R DF/R F/R

MEETING 3 party 3 party 3 party （9/16）（10/3, 10）（1/--) Figure 1.3.1 Study Flow

1.4 Site Survey Schedule

Tables 1.4.1 –3 show the detailed schedule of the 1st to 3rd field surveys.

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Data Collection Survey for Southern Economic Corridor in Myanmar

Table 1.4.1 1st Site Survey Schedule D W Activities Stay Remarks 9/02 Wed HND (1035) → BKK (1505)*1 Bangkok 9/03 Thu 1000 JICA with Mr. Fujinuma from DSEZ SPV Bangkok 1600 NEDA 1800 DSEZ SPV 9/04 Fri 1000 EOJ Bangkok

9/05 Sat 0830 Site Survey of SEC, on Thai side Bangkok 9/06 Sun Reporting Yangon BKK (1750) →Yangon (1845)*3 9/07 Mon 0830 JICA Nay Pyi Taw 1030 UNHCR 1400 EOJ Yangon (1800) → Nay Pyi Taw (1850)*5 9/08 Tue 1000 Ministry of Transport Nay Pyi Taw 1300 Ministry of Construction 1530 MOECF 1700 JICA Nay Pyi Taw 9/09 Wed 0930 Coordination Meeting in Myanmar Nay Pyi Taw 9/10 Thu 1330 Han Sein Deputy Minister (MOT) Nay Pyi Taw 9/11 Fri Naypyidaw (0730) → Yangon (0820)*6 Yangon 1100 JICA 9/12 Sat Yangon (0845) → Dawei (0955)*7 Dawei 1200 Tanintharyi Region 1600 ITD Camp site / MOC Taninthary office 9/13 Sun 0730 Dawei → 1100 Myitta Bangkok 1500 Border (Phu Nam Ron) → 1800 BKK 9/14 Mon 1000 Mr. Honda Bangkok 1330 AMATA 9/15 Tue 1000 ITD Bangkok 1330 DOH 1600 JETRO 9/16 Wed 1630 Coordination Meeting in Thailand Airplane BKK (2245) → 9/17 Thu →HND (0655)*2

*1) HND→BKK: TG683 *2) BKK→HND: TG682 *3) BKK→RGN: TG305, *4) RGN→NYT: APEX SO-102 *5) NYT→RGN: APEX S-101 *6) RGN→TVY: APEX SO-SO-201 HND: Haneda, BKK: Bangkok, RGN: Yangon, NYT: Naypitaw, TVY: Dawei

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Data Collection Survey for Southern Economic Corridor in Myanmar

Table 1.4.2 2nd Site Survey Schedule Date Activities Stay Remarks 10/25 Sun From Narita to Bangkok Bangkok 10/26 Mon Site Survey from Bangkok to Myitta Dawei Study Team only 10/27 Tue Site Survey from Myitta to Dawei Dawei Study Team only 10/28 Wed Site Survey around Dawei SEZ Dawei Study Team only 10/29 Thu Joint Survey from Dawei to Myitta Dawei 10/30 Fri Joint Survey from Myitta to Thai Border, Bangkok *1) Myanmar Team Move to Bangkok(*1) stays in ITD Camp in Phu Nam Ron 10/31 Sat Move to Yangon Yangon 11/1 Sun Move to Nay Pyi Taw Nay Pyi Taw 11/2 Mon DSEZMC, MOC, Preparation for CM Ditto 11/3 Tue Coordination Meeting in Myanmar, Move to Yangon Yangon 11/4 Wed JICA, Move to Bangkok Bangkok 11/5 Thu JICA, SPV, Preparation for CM Ditto 11/6 Fri ITD, R&B, DOH, Preparation for CM Ditto 11/7 Sat Filing (Preparation for CM) Ditto 11/8 Sun Filing (Preparation for CM) Ditto 11/9 Mon ITD, R&B, DOH, Preparation for CM Ditto 11/10 Tue Coordination Meeting in Thailand, Move from Airplane Bangkok to Narita 11/11 Wed Arrive at Narita

Table 1.4.3 3rd Site Survey Schedule Date Activities Stay Remarks 1/3 Sun Move from Narita to Yangon Yangon 1/4 Mon Move from Yangon to Dawei, Site Survey Dawei around Dawei 1/5 Tue Site Survey around Thai Border, Move to Bangkok Bangkok 1/6 Wed Preparation for JCM Bangkok 1/7 Thu Preparation for JCM Bangkok 1/8 Fri Move to Yangon Yangon 1/9 Sat Preparation for JCM Yangon 1/10 Sun Joint Coordination Meeting in Myanmar, Airplane Yangon to Narita 1/11 Mon Arrive at Narita

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Data Collection Survey for Southern Economic Corridor in Myanmar

2. Progress of Dawei Project

2.1 Chronology of Dawei Project

For Dawei development, the basic agreement was concluded between the Myanmar Government and Thai Government in May, 2008, and subsequently, the major Thai side developer, Italian–Thai Development (ITD) acquired the concession for Dawei development and proceeded with the activities. In July, 2012, both countries concluded MOU related to Dawei development, in which they stated the intention to be engaged in this development as a national project of both countries. In this way, a system in which the Thai Government confirmed its full commitment for the Dawei development was established. In 2013, the special purpose vehicle (SPV) was founded to promote the development under leadership of the two countries. In 2014, the tenders were invited for the initial development contractor in order to promote the initial development activities earlier. Besides, it was stated in the Japan-Thailand summit meeting held in February, 2015, that Japan would start the procedure to clear the conditions necessary for investment to participate in the SPV.

Table 2.1.1 Chronology of Dawei Project Time Event 2010, and after The Thailand general contractor, ITD, acquired the concession for development and proceeded with activities. Since 2012, both governments of Thailand and Myanmar have strengthened their commitment while calling for participation of a third country, specifically Japan. March, 2013 Signed basic agreement for foundation of SPV signed. Agreed to transfer the ITD Framework Agreement. June, 2013 Agreed on the SPV structure (joint investment of the same amount by Thailand NEDA and Myanmar FRED), and reached basic agreement on Framework Agreement September, 2013 Conducted trilateral meeting of Japan, Thailand, and Myanmar November, 2013 Concluded the framework agreement between the Dawei SEZ management committee and SPV, and cancelled the concession for development by ITD. Agreed to tender the initial activities of the road, small port, small power generation, etc. Both counties expressed strong expectation that Japan will be committed, for example, bidding of the Japanese enterprise, etc. April, 2014 The Thailand Government and Myanmar Government selected Roland Berger of Germany as the Project Management Office (PMO) of initial activities. August, 2014 Delivery of the nominated tender document (TOR) for seven initial development activities (two-lane road connecting Dawei with the border with Thailand, small port, industrial estate, small power plant, commercial and residential area, small reservoir, and wire communications). Delivery made to ITD in addition to Japan. September, 2014 Bidding by ITD October, 2014 Invited Minister of Labor, Employment, and Social Security Ei Min (the Myanmar side counter in charge of Dawei) to Japan for visiting the Kajima Coastal Industrial Estate. December, 2014 Roland Berger started review of the master plan (the task ordered by Thailand NEDA, up to June, 2015) January, 2015 Held the Japan–Thailand meeting and the Japan–Thailand, and Myanmar meeting concerning Dawei development February, 2015 Held Japan-Thailand summit meeting. Prime Minister Abe stated that, recognizing the importance of Dawei development, Japan would like to start the procedure to establish the conditions necessary for investment to participate in the SPV. In addition, he revealed the plan of dispatching the JICA experts and implementation of survey on the road construction. Prime Minister Prayuth welcomed the participation of Japan and expressed his hope that the cooperation will continue in the future.

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Data Collection Survey for Southern Economic Corridor in Myanmar

March, 2015 Held Japan-Thailand summit meeting, confirming the cooperation of three countries: Japan, Thailand, Myanmar April, 2015 Held Japan-Thailand working-level meeting, and Japan-Myanmar working-level meeting April, 2015 Invited Thai Vice-minister of Transport, Arkhom (the Thailand side counterpart in charge of Dawei) to Japan for visiting the Kajima Coastal Industrial Estate. July, 2015 Signed MOU of cooperation for Dawei special economic zone development project by three parties August, 2015 Signed concession agreement for DSEZ initial phase development between ITS consortium and DSEZ management committee. Three parties conference was held. October, 2015 Roland Berger Presented the final report of review of the master plan December, 2015 Three parties conference was held, and shareholder’s agreement on investment for SPV establishment was signed Source：Prepared by the study team based on various data

2.2 Outline of Initial Phase

Initial development activities of Dawei development include 1) an access road between the Myanmar-Thailand border and industrial zone, 2) a small port, 3) a township, 4) a small power plant, 5) an initial power plant and boil-off gas power plant, 6) a reservoir, 7) a telecommunication cable, and 8) a LNG terminal. For the initial development activities, TOR was presented in August, 2014, and ITD consortium bid for it in September, 2014. Subsequently, long time was spent on negotiations, etc., and the concession agreement for the seven (7) components of the initial phase mentioned above except LNG terminal was concluded between the Myanmar Government and ITD Consortium in August, 2015 (the concession agreement on LNG terminal was concluded in March, 2016). Later on, the ITD Consortium held lots of consultations with the Myanmar Government on how the initial-phase development should be. Then, in September, 2015, the revised version of the current initial-phase plan was submitted to the Myanmar Government, in which a revised plan for the way of developing the access road is said to be incorporated. However, the content is not known.

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Data Collection Survey for Southern Economic Corridor in Myanmar

■：Initial Phase Area ■：Additional Area

Source: Integrated Development Plan for Industry Cluster Promotion in Myanmar, 2014

Figure 2.2.1 Plan of Initial Phase Development of DSEZ

Table 2.2.1 Components of Initial Phase Development No. Activities Remarks 1 Two-lane Road • Between Thailand-Myanmar border (Phu Nam Ron) and DSEZ • Toll road to be developed by utilizing the existing road 2 Small Port • Berth for general cargo and LNG terminal 3 Initial Industrial Estate • Including the site for industrial estate, feed-water and drainage equipment, and power distribution 4 Small Power Plant • Power generation equipment for temporary facilities, boil-off gas power generation equipment • Small power plant （GT/CCGT 450MW） 5 Initial Township/Residential Area • Nine buildings （9 buildings, each accommodating 720 person, that is a total of 6,480 persons）in the First Phase 6 Small Water Reservoir • Initial water reservoir already completed (Pa Yain Byu Reservoir) • One more reservoir may be constructed depending on the demand (Laing Gya Reservoir) 7 Telecommunication Landline • Telecommunication fiber cable to be developed along the access road Source: Integrated Development Plan for Industry Cluster Promotion in Myanmar, 2014

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Data Collection Survey for Southern Economic Corridor in Myanmar

3. Issues and Improvement Measures for the Initial Phase Road Plan

3.1 Background of the Initial Phase Road Plan

3.1.1 Background of the Initial Phase Road Plan

According to the initial tentative conceptual plan compiled by ITD as of 2008, construction works for the four-lane access road from the border with Thailand at Phunamron to the DSEZ was to be started in 2011 and completed in 2016, and then the access road was to be widened to eight lanes by 2020. However, due to the delay by the Myanmar Government in allowing ITD to develop the DSEZ and/or ITD’s raise of DSEZ development funds, ITD returned the DSEZ development rights to the government. Then, DSEZ Development Company (SPV) took over the development rights at the same time. In 2015, the ITD consortium acquired a concession agreement on DSEZ initial development from DSEZ management committee, in which a two-lane initial phase road is specified.

3.1.2 Summary of the Initial Phase Road Plan

The Initial Phase Road starts at Sta. 18+500 (18.5 km from the coastline of the DSEZ) and ends at 156+500, with a total length of 138 km. There is a community, Myitta, at around the halfway point. The road alignment runs on the northern side of Myitta, avoiding its residential areas.

Saddle Hill KM.53 Elephant Cry Hill KM.102 Tewahda Hill KM.30

Pubpa KM.143

Source: ITD Document Figure 3.1.1 Location of the Initial Phase Road

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Data Collection Survey for Southern Economic Corridor in Myanmar

The design concept of the Initial Phase Road is to upgrade the existing gravel road1 to a two-lane asphalt concrete (AC) road according to the standard of the Department of Highway (DOH) of Thailand. The Initial Phase Road will be tolled in order to maintain the road appropriately and sustainably, and is expected to boost economic and tourism development in both Myanmar and Thailand in accordance with the growth of traffic and logistics after upgrading to a two-lane paved road.

Table 3.1.1 Summary of the Initial Phase Road Plan Length 138 km Start point Sta. 18+500 (18.5 km from coastline of DSEZ) End point Sta. 156+500 (border with Thailand) Terrain Rolling and mountainous Classification DOH Class 4 (standard of Thailand) Number of lanes 2 (Lane 3.5 m, Shoulder 1.0 m) Pavement Carriageway: AC wearing course (t = 6 cm), Base course (t = 20 cm), Sub-base course (t = 25 cm) Shoulder: Single surface treatment ROW 40 m (may be more than 40 m depending on the topography) Source: JICA Study Team

3.1.3 Design Standard of the Initial Phase Road

The Initial Phase Road is to meet Class 4 of Thailand’s DOH design standard.

Table 3.1.2 Thailand’s DOH Design Standard

Class Special 1 2 3 4 5 Urban Average daily traffic (ADT) > 8,000 4,000 - 8,000 2,000 - 4,000 1,000 - 2,000 300 - 1,000 < 500 - Flat 90 - 110 70 - 90 60 - 80 60 Design speed (km/h) Rolling or hilly 80 - 110 55 - 70 50 - 60 60 Mountainous 70 - 90 40 - 55 30 - 50 60 Flat 4 4 4 4 4 4 varies Maximum grading (%) Rolling or hilly 6 6 6 6 8 8 varies Mountainous 6 8 8 8 12 12 varies 7.00 3.00 - 3.50 Width of carriageway (m) 7.00 7.00 7.00 7.00 8.00 each direction per lane 2.50 - 3.00 (left) Width of shoulder (m) 2.50 2.00 1.50 1.00 - 2.50 1.00 - 1.50 (right) Bridge roadway width (m) 11.00 (min) 12.00 11.00 11.00 11.00 11.00 11.00 (min) Width of right of way (m) 60 - 80 60 - 80 40 - 60 (veries) 40 - 60 (veries) 30 - 40 30 - 40 - Maximum super-elevation (%) 10 10 10 10 10 10 6 Source: Thailand’s DOH Design Standard

1 The existing 145 km unpaved access road is used as a temporary construction road (data of the Study Team). 3-2

Data Collection Survey for Southern Economic Corridor in Myanmar

3.1.4 Road Structures of the Initial Phase Road

The road structures of the Initial Phase Road will be minimized in order to reduce the initial investment. According to the previous conceptual design data, the total bridge length of the Initial Phase Road would be approx. 1,450 m.

3.2 Technical Issues and Improvement Measures for the Initial Phase Road

The Study Team examined improvement measures for the access road in order to propose the development plan for the Full Phase Road, based on technical issues of the Initial Phase Road. Because it was difficult to obtain detailed information on the design of the Initial Phase Road during the study period, the Study Team decided to identify technical issues by utilizing the results of both a field survey of the current temporary access road, and interview surveys of the relevant organizations. The Study Team also considered technical issues keeping in mind that the design concept of the Initial Phase Road is to upgrade the current temporary access road to a DOH Class 4 road.

The issues considered were as follows:

 Issue 1: Reasonable Level of Developing the Southern Economic Corridor  Issue 2: Transport and Logistics Facilitation  Issue 3: Minimum Degradation  Issue 4: Seasonal Precipitation Measures  Issue 5: Traffic Safety Measures Issue 1: Reasonable Level of Developing the Southern Economic Corridor

The access road from the border with Thailand to the DSEZ is not only fundamental infrastructure for development of the DSEZ but also an important international transportation route forming a part of the Greater Mekong Sub-region (GMS) transport network strengthening ASEAN connectivity. It is assumed that the Initial Phase Road (DOH Class 4 road) will be built in line with the concession agreement, and the Full Phase Road (Asean class 1 road) will be built based on the agreement between both Myanmar and Thailand. It is essential to gradually raise the functionality of the road in accordance with the state of development of the DSEZ, which is also a reasonable development method especially in case the number of lanes is increased in line with traffic demand. On the other hand, one problem could be inadequate use of the Initial Phase Road in the future if the Initial Phase Road and the Full Phase Road have quite different standards, or if their respective road development plans are prepared without complete consistency. Thus, it is desirable to adopt the Asean Class 1 Standard for the Initial Phase Road to minimize potential investment losses because it would not be easy to change the vertical gradient once the construction works have been completed. The running speed of large freight vehicles could be less than 10 km/h at the steepest sections of the Initial Phase Road (12%). It is essential to make a plan with as gentle gradient as possible to secure the transportation and logistics functions of the Southern Economic Corridor, which is an artery for the industry. The specific vertical gradient is described later. 3-3

Data Collection Survey for Southern Economic Corridor in Myanmar

Table 3.2.1 Level of Southern Economic Corridor Development Item Initial Phase Road Full Phase Road Road standard DOH Class 4 (Thailand) Asean Class 1 (Asean Highway) Number of lanes 2 lanes (W = 2 @ 3.5 m) 4 lanes (W = 4 @ 3.5 m) Terrain Rolling Mountainous Rolling Mountainous Design speed 55–70 km/h 40–55 km/h 60–80 km/h 50–70 km/h Max. vertical gradient 8% 12% 6% 7% Traveling speed of Less than 10 large vehicles at the 15–25 km/h 20–25 15–25 km/h1) max. vertical gradient Note: 1) Less than 10 km/h is in the case of half-loaded freight vehicles. If the vertical gradient is 12%, the speed of fully loaded freight vehicles could be reduced to a crawl (far below half the design speed) on the up-grade depending on its length. Source: JICA Study Team

Cross-section of two-lane road Figure 3.2.1 shows a typical cross-section and the widths of the carriageway and shoulder of the Initial Phase Road which comply with DOH Class 4 of Thailand (Mountainous).

Source: JICA Study Team Figure 3.2.1 Typical Cross-section (2-Lane Road) Cross-section of four-lane road Figure 3.2.2 shows a typical cross-section and the widths of the carriageway and shoulder of the Full Phase Road comply with Asean Class 1of Asean Highway (Mountainous).

Note: The thickness of the sub-base course and base course is 250 mm and 299 mm, respectively, considering the pavement structure of the Initial Phase Road in this study. Source: JICA Study Team Figure 3.2.2 Typical Cross-section (4-Lane Road)

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Vertical Gradient of Full Phase Road

Based on the “Comparison of road design standards of countries/regions” shown in Table 3.2.2 and “relation between vertical gradient and traveling speed of large freight vehicles”, it is desirable to make a plan using a vertical gradient of less than 5 to 6% for the Full Phase Road for the following reasons. Firstly, the Asean Highway Standard (Class 1), Asian Highway Standard (Class 1), Thailand’s DOH Standard (Class 1), and Myanmar MOC Standard2 (Main Arterial) are shown in the table below. According to these standards, the design speed of the Full Phase Road is expected to be between 50 km/h and 80 km/h in view of the rolling and mountainous terrain of Asean Class 1. Since this expected range of design speed is too wide to examine the vertical gradient of the Full Phase Road, it would be better to narrow down the range to 70 to 80 km/h. Based on this assumption, a maximum vertical gradient of between 5% and 7% should be reasonable.

Table 3.2.2 Comparison of Road Design Standards of Countries/Regions Class 1 Class 1 Class 1 Main Arterial Items (Asean) (Asian) (Thailand) (Myanmar) Terrain Classification R M R M R M R M Design speed (km/h) 60 - 80 50 - 70 80 50 80 - 110 70 - 90 80 (60*) 60 (40*) Max. vertical grade 6 7 5 6 (7**) 6 8 5 (6**) 8 (10**) (%) Min. horizontal curve 120 80 210 80 380*** 230*** 210 105 radius (m) Width of lane (m) 3.5 3.5 3.5 3.5 Width of shoulder (m) 3.0 2.5 3.0 2.5 3.0 2.5 2.5 2.0 Width of median (m) 3.0**** 2.5**** 3.0 2.5 3.0 2.5 3.0 2.5 *: If necessary, the design speed can be set at 20 km/h lower than the standard speed. **: Applicable for the steep mountainous area ***: Provided by considering maximum combined gradient of 10% ****. Not specified in the Asean standard (The value in the table is to be assumed by the study team, comparing with other standards)

Secondly, the relation between the vertical gradient and traveling speed of large freight vehicles is shown in the figure below. It can be seen that the traveling speed of fully loaded trailers tends to fall below 20 km/h if the vertical gradient exceeds 6%, and that of fully loaded trucks tends to fall below 25 km/h if the vertical gradient exceeds 8%. Accordingly, the vertical gradient should not exceed 6% in order to secure the functions of the road for international transport and logistics.

Source: JICA Study Team (Japan Road Design Standards referred) Figure 3.2.3 Relation between Vertical Gradient and Traveling Speed of Heavy Vehicles

2 Myanmar MOC Standard (draft) was prepared in August 2014 with the technical assistance of Korea. The Full Phase Road is classified into Main Arterial of the Myanmar MOC Standard. 3-5

Data Collection Survey for Southern Economic Corridor in Myanmar

Issue 2: Transportation and Logistic Facilitation Vertical Gradient of the Initial Phase Road The Initial Phase Road can be classified by vertical gradient as follows: less than 5% (approx. 86 km or 62% of the road), 5–8% (approx. 19 km or 14% of the road), and 8% or more (approx. 33 km or 24% of the road). A gradient of less than 5% corresponds to “flat terrain” of the Asean Class 1 Standard, and the service level of this gradient is expected to secure at least the design speed of 80 km/h. A gradient of 5–8% corresponds to “rolling and mountainous” of the Asean Class 1 Standard, and the service level of this gradient is expected to secure the design speed of 60–70 km/h. The problem regarding transportation and logistics is that of the sections with a gradient of more than 8%, which will severely lower the traveling speed of large freight vehicles3.

Source: JICA Study Team Figure 3.2.4 Composition of Vertical Gradient of Initial Phase Road

Improvement of the Initial Phase Road from the Temporary Access Road The existing temporary access road has sections with a vertical gradient of more than 18%. Since the design value of the maximum vertical gradient of the Initial Phase Road is to be 12%, the road still has problems in terms of running speed for large freight vehicles even if it is improved somewhat. The length of Initial Phase Road is approximately 138 km, 7 km shorter than the current temporary access road of 145 km because of the improvement (larger curvatures) of the horizontal alignment in the flat area around Myitta as well as the change of route alignment in the narrow section (e.g. 5 m) on Tewahda Hill.

3 ITD plans to install a climbing lane at sections where the vertical gradient of the Initial Phase Road is more than 10%. 3-6

Data Collection Survey for Southern Economic Corridor in Myanmar

Source: JICA Study Team Figure 3.2.5 Improvement of the Initial Phase Road for Temporary Access (Gradient)

The running speed of large vehicles will not be problem if the length the road section with the vertical gradient of 8% is relatively short (approx. 200 m) on ordinary roads; however it will be necessary to consider the reduction of speed of large vehicles if the gradient is more than 8% on arterial international roads, or if the length is around 500 m even if the gradient is less than 8%. Thus, the Study Team assessed putting priority on improving the bottleneck sections (A, B, C, D, E, F, G in the figure below) where the difference in height of the vertical gradient exceeds 40 m (8% over a length of 500 m). The figure below shows the transportation and logistics bottlenecks of the Initial Phase Road.

A B C D E F G

Source: JICA Study Team Figure 3.2.6 Transportation and Logistics Bottlenecks of the Initial Phase Road

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Issue 3: Minimum Degradation

Section over the hill

Cutting in mountainous regions has a severe degradation impact because it is necessary to dig down deep into the mountain in order to moderate the gradient and allow large freight vehicles to run smoothly. The depth of cutting the mountain at Saddle Hill and Elephant Cry Hill for building the existing temporary access road exceeds 40 m (more than 18% gradient). The depth and amount of cutting will become larger in the future when proceeding to the development phase such as the Initial Phase (with maximum gradient of 12%) or Full Phase (with maximum gradient of 7%) to meet the specified vertical gradient and road width. Deep digging must consider negative impacts on the natural environment caused by large-scale degradation and deforestation, and a long cutting slope may require stabilization measures (e.g. installation of structures and changing the slope gradient) and/or protection measures (e.g. slope conservation with natural materials). A tunnel at the hill would not only effectively minimize the degradation but also further reduce the vertical gradient, which is one of the highest priority issues for facilitating transportation and logistics.

Section between rivers and mountains

Since sections between rivers and mountains have a relatively gentle vertical gradient (almost flat), the basic measure for expansion is to utilize the existing road space wherever possible. Typical expansion methods are as follows: (1) To cut the mountain side if impacts on the river are not permitted (2) To cut the mountain side and fill the river side in a balanced manner (3) To cut the mountain side and raise the planned height of the carriageway on the mountain side to reduce the cutting volume

Photo A: Section over Saddle Hill by large-scale Photo B: Section between Tanintharyi River and cutting mountain (beside the river)

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Issue 4: Seasonal Precipitation Measures

Annual average rainfall in Dawei from 2001 to 2010 is recorded at 5,472 mm, one of the largest in Myanmar. Thus, the risk of flooding in low-lying areas and the risk of slope failure in mountainous areas will be considered.

Source: JICA Study Team (Department of Meteorology and Hydrology) Figure 3.2.7 Annual Rainfall by Region in Myanmar (average for a decade)

Photo C shows a slope failure at Tewahda Hill. It appears that this failure was caused by a defect and inadequate capacity of the drainage system. Installing drainage facilities to cope with the expected rainfall intensity and the location and structure of drainage terminals will be considered.

Photo C: Slope failure at Tewahda Hill due to overflowed rainwater

The rainfall is intense and concentrated in a short time at the project site according to rainfall data of a station located near Kanchanaburi in Thailand. Thus, it is necessary to carefully set the design rainfall intensity for roadside ditches and pipes, and to install drainage facilities of appropriate size. Excavated ground is relatively stable; however, there have been a few shallow slope failures due to the steep slope gradient (1:0.25–0.30). Photo D shows slope failures of the surface layer. It is desirable to make the slope as gentler as 1:0.5–0.8 when cutting a slope if the ground is found to be an unsound rock layer, 3-9

Data Collection Survey for Southern Economic Corridor in Myanmar and to prevent rainwater from flowing down the slope by installing drain ditches on the berm (1.5 m in width) which is provided every 5–7 m in depth of excavation.

Photo D: Slope failure at Saddle Hill due to rainfall in the rainy season

Rainfall is a major factor affecting the construction schedule. According to data of the monthly average rainfall for a decade in Dawei, the period of heavy rain is from May to September, and the peak months are July (1,301 mm) and August (1,264 mm). When planning the construction of substructures of bridges crossing rivers, a timing that is not in the rainy season should be considered. Quality control of the embankment and pavement works must be considered. Rainfall (mm)

Month

Source: JICA Study Team (Department of Meteorology and Hydrology) Figure 3.2.8 Monthly Rainfall in Dawei (average for a decade)

Issue 5: Traffic Safety Measures

Major traffic safety facilities installed on the road between Phu Nam Ron and Kanchanaburi (AH1234), which is a part of the Southern Economic Corridor, are shown in Photo E. The access road will be constructed at the same level as that of in Thailand for securing safety and continuity. Although traffic safety problems might not be significant in the initial phase because of the low traffic volume and small ratio of large freight vehicles, the risk of traffic accidents will increase as the traffic volume of large freight vehicles increases dramatically.

4 AH123: The total length is 634 km through Phu Nam Ron – Kanchanaburi – Bangkok – Laem Chabang – Map Ta Put – Trat – Hat Lek. 3-10

Data Collection Survey for Southern Economic Corridor in Myanmar

The following traffic safety measures were introduced:

 Pavement markings  Guardrails, delineation poles, and warning signs  Street lights (sections through communities, tunnels, bridges, intersections, and other potential risk areas)

Photo E Southern Economic Corridor in Thailand, between Phu Nam Ron and Kanchanaburi

3.3 Improvement Measures for Smooth Running of Large Vehicles

Based on the transportation and logistics bottlenecks of the Initial Phase Road described previously, the Study Team examined specific improvement measures5 in order to prepare an optimal plan for the access road in the Full Phase Stage after identifying those sections where the running speed of large freight vehicles (heavy trucks and trailers) will reduce remarkably.

Identifying difficult sections for heavy trailers

Section with driving speed of 0 to 10 km/h (far below allowable Criteria minimum speed) Target vehicle type: heavy trailer (fully loaded) Vehicle performance: 7 PS/t Conditions Design speed: 50 km/h* Allowable minimum speed: 25 km/h Results 10 sections Improvement of vertical gradient Solution 1) Improvement with minor route change 2) Improvement with large-scale route change, e.g. tunnel  Difficult of running heavy trailers might affect the incentive for DSEZ investment. Remarks  The section where the vertical gradient is improved will be maximally used for the Full Phase Road. Note: * The design speed of the Initial Phase Road is assumed to be 50 km/h.

5 In this survey report, improvement of vertical gradient is to be required for the section with fully loaded heavy trailer’s driving speed of 0 to 10 km/h, and installation of climbing lane is to be required for less than the fully loaded heavy truck’s allowable minimum speed based on the Japan Road Design Standards. 3-11

Data Collection Survey for Southern Economic Corridor in Myanmar

Identifying difficult sections for heavy trucks

Less than the allowable minimum speed and section length of over 200 Criteria m Target vehicle type: heavy truck (fully loaded) * Vehicle performance: 10 PS/t Conditions Design speed: 50 km/h** Allowable minimum speed: 25 km/h Results 16 sections Solution Installation of climbing lane The timing of installing the climbing lane shall take into consideration Remarks the traffic conditions, i.e. the traffic volume and large vehicle ratio. Notes: * Heavy trucks: Vehicles with maximum loading capacity of over 5 tons or the vehicle weighting over 8 tons (small trucks: vehicles with maximum loading capacity of under 3 tons). ** The design speed of the Initial Phase Road is assumed to be 50 km/h.

From the results of analyzing sections difficult for heavy trucks and trailers to climb, the Study Team identified 10 sections and 16 sections that require improving the vertical gradient and installing a climbing lane, respectively. In principle, sections for improvement of the vertical gradient will have different route alignments from the Initial Phase Road. Subsequently, the Study Team identified four sections for changing the route alignment in consideration of the topographic conditions, land use, and positions of major bottleneck sections (A, B, C-D, and E-F-G). There will be no need to install a climbing lane in the sections for installing a climbing lane if they are included in the road alignment change, because the problem of steep vertical gradient will already have been solved. Finally, 4 sections for improvement of the vertical gradient by changing the route alignment and 5 sections for installing a climbing lane have been identified.

Sections for improving the vertical gradient by changing the route alignment

 Study Section 1 includes bottleneck A.  Study Section 2 includes bottleneck B.  Study Section 3 includes bottlenecks C and D.  Study Section 4 includes bottlenecks E, F and G. (Refer to Figure 3.3.2)

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Study Section 1 Study Section 2 Study Section 3 Study Section 4

Source: JICA Study Team Figure 3.3.1 Improvement Measures for Smooth Running of Large Vehicles

Study Section 1 Study Section 2 Study Section 3 Study Section 4

(*) Comparison of Typical Cross Sections of Initial Phase Road, Improved Road Sections, 4-lane Road and Climbing Lane are shown in the reference Source: JICA Study Team Figure 3.3.2 Improvement Locations for Smooth Driving of Heavy Trucks 3-13

Data Collection Survey for Southern Economic Corridor in Myanmar

 New alignment sections are upgraded to Class I  Class I has more gentle gradient and alignment, wider shoulder, and more substantial pavement than Class IV

Source: JICA Study Team Figure 3.3.3 Typical Cross-sections of Bypass

Source: JICA Study Team Figure 3.3.4 Strategic Plan of Truck Lane

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4. Access Road Development in Full Phase

4.1 Basic Policy for Development

The basic concept for development of the access road in the full-phase stage is as follows:

(A) Appropriate road for the future traffic volume and the heavy-truck traffic volume: The traffic volume of the access road will depend on the level of investment in the DSEZ and the heavy truck ratio will be determined by the sector of local industries. Namely, the details of development should be determined according to the expected demand. (B) Appropriate road structure to meet the international corridor design standard and the Myanmar road design standard: The road Southern Myanmar Economic concerned is the Southern Economic Corridor connecting four Corridor

countries, Myanmar, Thailand, Cambodia, and Vietnam (see the Yangon Thailand figure right), and it must meet the Asian Highway or ASEAN Bangkok Vietnam Highway standards. Dawei (C) Socially and environmentally agreed and approved plan: The Cambodia Phnom areas through which the road runs are forestland, they are also Ho Chi Minh Penh areas inhabited by the ethnic minority (refer to chapter 5). Therefore, the plan must take into account thoroughly the Figure 4.1.1 Location of Southern Economic Corridor environmental and social considerations. (D) Plan contributing not only to economic revitalization of Myanmar, but also to regional development: The road concerned is expected to prove beneficial not only to Myanmar, but also widely to other regional countries like Thailand, and Cambodia. For this purpose, however, the plan must firstly prove beneficial to the regions along the road. (E) Appropriate implementation scheme including financial feasibility: Road development must be considered not only as the work to be implemented totally as a public works project, but also as a PPP project including BOT, and BTO. In particular, since this project will require ultimately a project cost exceeding ¥100 billion, one of the important issues to be dealt with will be how to secure the fund for construction and improvement of roads.

Traffic capacity to meet the future traffic volume and heavy truck A ratio

Appropriate road structure (design speed, vertical gradient, minimum horizontal curve radius, pavement, etc.) to meet the B international and Myanmar road design standards

C Socially and environmentally agreed and approved plan

Economic feasibility including contribution to regional D development

Appropriate implementation scheme including financial feasibility E Figure 4.1.2 Basic Policy for Access Road Development in Full Phase 4-1

Data Collection Survey for Southern Economic Corridor in Myanmar

4.2 Demand Analysis

ITD has once performed the demand forecast for the Southern Economic Corridor, which shows 5,000 vehicles/day after the start of the initial phase, 10,000 vehicles/day in 2024, and 19,000 vehicles/day in 2040. In response, the cargo-handling volume of the Dawei Port was forecast to be 48 million tons in 2015, 111 million tons in 2025, and 225 million tons in 2040. (All results according to the ITD data) The METI conducted a survey 2014 on the volume of cargoes that Dawei Port is expected to handle, and revised earlier figures provided by ITD as shown in Table 4.2.1.

Table 4.2.1 Future Cargo Volumes of Dawei Port by METI 2025 Category High Middle Low Cargo Volume from Heavy Industry (‘000 ton) 81,933 51,933 51,933 DSEZ Industrial Area (‘000 ton) 10,059 5,487 2,743 Transit Cargo Volume (‘000 ton) 7,138 Cargo Volume from Vicinity Area (‘000 ton) (included in Industrial Area) Total (‘000 ton) 99,130 64,558 61,814 Source: METI Study

The 2025 cargo volume estimated by ITD is compared with that of METI survey in the same year. The result shows that, in medium-term growth case the the METI estimate is just about 58% (64,558/111,000 = 0.582) of that of ITD estimate. Namely, the comparison result suggests that ITD overestimated considerably the traffic volume. Traffic demand should be carefully considered since it may affects road design concept and its feasibility. Since no detailed analysis on demand forecast except the said ITD study is found, however, there is no option other than reviewing the ITD estimation for the time being. Therefore, 80 % of demand estimated by ITD, which is the average of the ITD estimation and METI study findings, would be applied in this study. In order to check the impact of such a traffic demand variation, sensitivity analysis would be considered in the benefit analysis.

Using the traffic volume equivalent to the ITD estimate and 80% of ITD estimate, the heavy truck ratio was increased from initial 10% to ultimate 50%. The annual traffic volume was estimated for each case, and the time at which a road with four lanes becomes necessary and the time at which a road with more than four lanes becomes necessary were determined, as shown in Figs. 4.2.1 and 4.2.2. These figures show that the four-lane road will become necessary in 2025 and the road with more than four lanes will become necessary in 2037 according to the ITD traffic estimate. When based on the traffic volume of 80% of the ITD estimate, the timing is simply delayed by two years (i.e. the four-lane road in 2027, and the road with more than four lanes in 2041).

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Figure 4.2.1 Necessary infrastructure and Traffic Demand (estimated by ITD)

Note: figure (*) in based on the ITD study

Figure 4.2.2 Necessary infrastructure and Traffic Demand (80% of ITD estimate)

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4.3 Road Development Scenario

In the previous section, the time when the four-lane road becomes necessary was analyzed based on the result of demand forecast. At present, the initial-phase road is planned by ITD. As analyzed in Chapter 3, this initial-phase road has so many sections with sharp gradient, which may impede the smooth flow of heavy trucks and trailers. These vehicles may not be allowed to travel the road for the time being, but this will surely affect the operation of SEZ. In other words, a development scenario in which heavy trucks and trailers may be allowed to use the road from the beginning may also be considered. For this study, the following three options were established as scenarios for development of the Southern Economic Corridor:

 Option 1: Assuming that ITD undertakes construction of the initial-phase road, and then the road will be upgraded by providing detours at the bottleneck to ensure smooth travel of heavy trucks, and the four-lane road will be constructed at a time point when the traffic volume increases.  Option 2: The two-lane road that allows smooth travel of heavy trucks will be developed from the beginning and will be upgraded into the four-lane road when the traffic volume increases.  Option 3: The four-lane road ensuring smooth travel of heavy trucks will be developed from the beginning, to avoid frequent road development.

Table 4.3.1 Road Development Scenario

Source: JICA Study Team

For Options 1 and 2, the following sub-options may be considered, instead of proceeding with widening of the entire route to four-lane road.

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Corresponding Sub-options Description option (s) 1 Initially, all sections other than the bypass road (BP) section will be widened to four-lane roads. For the BP section, the traffic volume will be dealt with by the initial-phase road and BP. In such an event, the BP section will be 1 used by the large freight vehicles while the initial-phase road will be used by the passenger cars. (See Figure 4.3.1) 2 The Myitta-border with Thailand section will be widened to four-lane road in advance. The Dawei-Myitta section will cope with the increased traffic volume by utilizing the existing MOC road. The MOC road will basically be 1, 2 used by passenger cars and traffic of large freight vehicles will be restricted. (See Figure 4.3.1)

Source: JICA Study Team Figure 4.3.1Setting of Sub-options

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4.4 Route Planning

Regarding the selected four sections for improving the vertical gradient by changing the route alignment, the Study Team planned alternative routes for each section, and then conducted a comparison study. For the alternative routes, Asean Class 11, the same standard as that of the Full Phase Road, was adopted considering not only ease of running, traffic safety and conformity of large freight vehicles but also expansion of road functions in the future.

Geometric Standard of Roads

The geometric standard of Asean Class I (Asean Highway Standard) road is shown in the table 4.4.1. The Study Team planned alternative routes with a desirable maximum vertical gradient of 5%.

Table 4.4.1 Asean Class I (Asean Highway Standard) L R M Design speed km/h 80-110 60-80 50-70 ROW m Rural (50–70), Urban (40–60) Width Carriageway m 3.5 Shoulder m 3.0 3.0 2.5 Min. curvature radius m 220 120 80 Max. super-elevation % Rural (8), Urban (6) Max. vertical gradient % 5 6 7 Min. vertical clearance m 4.50 (5.00) Design load HS 20–44 Note: L: Level Terrain, R: Rolling Terrain, M: Mountainous Terrain, Source: Association of Southeast Asian Nations

Cross-section of Alternative Route

The cross-section of the two-lane alternative route is shown in the figure 4.4.1. The Study Team adopted a shoulder width of 2.5 m (Asean Class 1 Standard) to secure greater visibility for drivers, and thus enhance safety and conformity for vehicle stopping and passing, especially in the mountainous area. Moreover, the width of 2.5 m will enable large freight vehicles to stop temporarily in case of unexpected accidents or emergency.

Source: JICA Study Team Figure 4.4.1 Typical Cross-section of Detour Road

1 The Asean Highway Standard has four classifications: Primary (controlled expressway), Class I (four-lane highway), Class II (two-lane AC road), Class III (two-lane DBST road). 4-6

Data Collection Survey for Southern Economic Corridor in Myanmar

Planning of Alternative Routes for Each Bottleneck Section

The Study Team planned alternative routes for each bottleneck section in consideration of the design concept of the Full Phase Road by ITD, including some new alignments employing tunnels to minimize degradation and to moderate the road gradient. On the other hand, since it was difficult to acquire sufficient and accurate information on the detailed design and topographical and geological data of the Full Phase Road from ITD or relevant organizations in Myanmar and Thailand, the Study Team had no choice but to plan alternative routes based on only the design concept of the Full Phase Road by ITD. Thus, the alternative routes planned by the Study Team were mainly based on topographical aspects.

Table 4.4.2 Summary of Alternative Routes Study Section Description of Alternative Route Remarks (Bottleneck) Shortcut route with a shorter tunnel through Tewahda Hill Alt. 1 New alignment Section 1 which is a part of bottleneck A (A) Shortcut route with a tunnel and smoother alignment Alt. 2 New alignment through Tewahda Hill which is a part of bottleneck A Cutting route over Saddle Hill which is a part of bottleneck Alt. 1 ITD alignment Section 2 B (B) Tunneling route through Saddle Hill which is a part of Alt. 2 New alignment bottleneck B Route with tunnel through Elephant Cry Hill (bottleneck C), Alt. 1 and with bridge passing over the mountainous area of 9 km ITD alignment Section 3 up to bottleneck D (C, D) Route with tunnel through Elephant Cry Hill (bottleneck C), Alt. 2 and then passing along the bases of mountains up to New alignment bottleneck D Route with a long bridge of approx. 1 km over the valley Alt. 1 between bottleneck E and F, and with 5% up-grade of ITD alignment Section 4 continuous 4.5 km (E, F, G) Route diverting to the south (Tanintharyi River side) to Alt. 2 New alignment avoid bottlenecks E, F and G Source: JICA Study Team

A joint survey was conducted among relevant organizations of Myanmar and Thailand, JICA and the Study Team for three days, from October 28 to 30, 2015. Eight persons from the Myanmar side, 4 from the Thai side and 2 from DSEZ SPV participated in the survey. All participants actively discussed the issues and improvement measures at the bottlenecks. Based on the comments of officials, all alternative routes proposed by the Study Team were adopted, and development measures employing tunnel structures were also accepted.

Conditions of the Project Site

Start Point

Photos F & G show the state of the temporary bridge over the Dawei River and National Highway No. 8.

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Photo F: Temporary bridge over the Dawei River Photo G: National Highway No. 8 (two-lane (constructed in 2001, L = 220). The planned Full penetrating macadam pavement road) near the Phase Road Bridge is to increase the elevation up to intersection with the access road +14 m to avoid flooding.

Study Section 1

Study Section 1 is a route from the intersection with National Highway No. 8 to Tewahda Hill, which is a part of bottleneck A. The ITD alignment at Tewahda Hill follows the existing community road along the Talaiya Chaung River; however, since it would be difficult to excavate the very hard rocks to widen the existing road, the Study Team proposed alternative routes with a tunnel through Tewahda Hill instead of the ITD alignment.

Photo H: Rock ground of Tewahda Hill at the side of the Talaiya Chaung River

Ka Loat Htar Reservoir will be developed to establish a water supply system for DSEZ, and therefore, the reservoir development plan is fully considered in planning the route at Tewahda Hill. The planned capacity of the reservoir is approx. 600 million m3, with the construction of Ka Loat Htar Dam on the Talaiya Chaung River which is a branch of the Dawei River. According to the interview survey, the elevations of the dam and the Full Supply Level (FSL) of the reservoir are +100 m and +95 m, respectively.

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Source: ITD Figure 4.4.2 Development Plan of Ka Loat Htar Reservoir

According to information provided by DOH, there is an area prone to flooding on the eastern side of National Highway No. 8. This area is in the Talaing Gya River Basin, located starting from Tewahda Hill down to the junction of the Talaing Gya River and the Talaiya Chaung River. The Alt. 2 route passing through this area seems to be at risk of flooding. ITD’s comment regarding the Study Section 1 is that water problem may arise if tunnel is constructed because the route proposed by the study team seems to pass close to the dam construction site.

Study Section 2 Study Section 2 is a route down to Saddle Hill, which is a part of bottleneck B after passing bottleneck A. The figure below shows the concept of the routes of Alt. 1 and Alt. 2 proposed by the Study Team. Route Alt. 1 passes in the mountainous area on the south side with several bridges and then crosses Tewahda Hill with cutting. Route Alt. 2 passes at the base of the mountains and then through Tewahda Hill with a tunnel 1.3 km long. ITD’s comment regarding the Study Section 2 is that there is a fault (failure problem) on the Alt. 2 route proposed by the study team.

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I = 2.3% I = 1.7%

ITD Camp I = 3.0% Tunnel I = 5.0% KNU Camp

Alt. 2 Alt. 1

Note: View in the direction of DSEZ from the top of Saddle Hill. No information on KNU camp area

Note: View in the direction of DSEZ from the top of Saddle Hill. No information on the KNU camp area. Source: JICA Study Team

Study Section 3 Study section 3 is a route from Elephant Cry Hill, which is a part of bottleneck C up to bottleneck D. The terrain around the top of Elephant Cry Hill is steeper than that of other hills, and passenger cars may skid even in the dry season. Thus, ITD plans to build a tunnel in the Full Phase Road development stage at Elephant Cry Hill. Route Alt. 1 passes through Elephant Cry Hill with a tunnel of approx. 0.9 km long and travels 9 km in the mountainous area up to bottleneck C. Route Alt. 2 passes through both bottlenecks C and D with a tunnel and passes along the base of the mountains between the bottlenecks.

Photo I: View of Elephant Cry Hill from the western Photo J: View to the western side (DSEZ side) from side (DSEZ side) the top of Elephant Cry Hill

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Photo K: Small vehicles stuck on the steep road at Photo L: View of the area between bottleneck C and Elephant Cry Hill D

Study Section 4 Study section 4 is a route passing bottlenecks E, F and G to approach the Thai border. Topographically, the altitude of bottleneck F is +430 m, and there is a deep valley between bottleneck E and F. A long tunnel of more than 3 km long will be needed to moderate the road gradient at bottleneck F. Route Alt. 1 passes over the deep valley with a long bridge of approx. 1 km and with a 5% up-grade of approx. continuous 4.5 km in length. Route Alt. 2 diverts to the south (Tanintharyi River side) to avoid bottlenecks E, F and G as well as to moderate the road gradient to 0.5–1.6% by employing a tunnel of approx. 1.0 km. According to information provided by DOH, the flood level of the Tanintharyi River would rise up to an altitude of +150 m in the rainy season. Although the Study Team considered that the planned road height of Alt. 2 should be at least +160 m elevation, it is desirable to set the planned road height based on a detailed hydrological study and topographical survey. ITD’s comment regarding the Study Section 4 is that the route Alt. 2 may be affected by the planned dam construction project, in the area where flooding occurs.

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Comparison of Alternative Routes

The Study Team compared the alternative routes for each section. As a result of the comparison, the Study Team concluded that Alt. 2 for bottleneck A and Alt. 1 for bottleneck B, C/D and E/F/G have comparative advantages.

Table 4.4.3 Comparison of Alternative Routes Bottlenecks A B C/D E/F/G

Alternative Alt. 1 Alt. 2 Alt. 1 Alt. 2 Alt. 1 Alt. 2 Alt. 1 Alt. 2

Length (km) 9.4 9.5 16.8 17.5 18.3 18.3 24.0 28.3

Construction 2.2 3.1 1.6 1.7 1.7 2.3 3.8 2.0 period (year) *1 (b) (b) (a) (b) (a) (b) (a)

Maximum 2.2 4.5 5.0 3.3 3.9 5.0 5.0 1.6 gradient (%) Time reduction 1.0 0.9 0.4 0.5 0.6 0.5 0.6 0.7 (hrs) *2 Rough const. cost estimation 75 91 99 83 163 123 119 101 (million USD) Cost difference 1.0 1.2 1.2 1.0 1.3 1.0 1.2 1.0 (ratio) Evaluation Alt. 1 Alt. 2 Alt. 2 Alt. 2  Alt. 1 has a relative  Alt. 2 has a relative  Alt. 2 has a relative  Alt. 2 has a relative advantage. advantage. advantage. advantage.  Alt. 1 has 20% lower  Alt. 2 is 0.7 km  Alt. 2 has a longer  Alt. 2 is 4.3 km cost and gentler road longer, but is construction period longer, but there is gradients. advantageous in and steeper road no difference in  Alt. 1 has less terms of cost and gradient, but 30% traveling time Remarks flooding risk. road gradient. lower cost. between the two alternatives.  Alt. 2 is advantageous in terms of cost and road gradient. Notes: *1: (a) due to the longest bridge construction, (b) due to the longest tunnel construction. *2: (b) Time reduction is compared with the Initial Phase Road. Source: JICA Study Team

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Figure 4.4.3 Results of Alternative Routes Comparison (1/2)

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Figure 4.4.4 Results of Alternative Routes Comparison (2/2)

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4.5 Tunnel

Review of the Class 1 full-phase (access) road faces the upper limit of road gradient; as a result, getting over several pass sections by means of bypass tunnels would be advantageous. For the initial-phase road, the issue pointed out is that sharp climbing sections may become bottlenecks for physical transport. The “bypass tunnels” are picked up as one solution to overcome the issue of the pass sections that is common to the full-phase (access) and initial-phase roads.

(1) Topographic and Geological outlines of the study region

○ Topographical description The topographical features of the road section concerned may be characterized by the chain of 500 to 1000 m mountains running north-northwest to south-southeast. In order to minimize the difference in height, the road runs through the straight lowland defined on both sides by the mountains, through the basin, and through the lowland along the river. Since the route intersects diagonally with the mountains, the road must pass through several pass sections. (Figure 4.5.1)

The road includes the mountainous section (including Pass A: Tewadha Hill, and Pass B: Saddle Hill)

covering up to 35 from the Dawei (Tavoy) River, the Myitta basin section up to the 60km point, the section along Tanintharyi River up to the 83km point, the straight valley section (including Pas C: Elephant Hill, Pass D) between mountains up to the 100 km point, and the section (including Passes E, F, and G) through the lowland at Sinbyudaing and through the mountain lowland to the boarder up to the 115km point. The sections causing hindrance to the smooth physical flow (the sections that have to be reviewed to secure the specified road gradient) and sections requiring large-scale civil engineering

work to construct the two-lane and four-lane roads are the pass sections of A though G and the superelevation slope along the river.

○ Geological description The geological feature of the road concerned is basically the Carboniferous to Permian sedimentary rocks, with thick fine-grain sand layer mixed with gravel dipping to the west in the Myitta basin and the river terrace deposit covering at the point 3 of 110 km (Figure 4.5.1). The basement sedimentary rocks are principally Green Schist to Black Schist, containing also breccia and clay slate. At Pass A (Tewadha Hill) around the 12 km point, fine leucocratic granite intruding in

the basement rock is distributed. By nature of topography, the fault is considered to be distributed more in north-northwest to south-southeast directions (no large fault detected in the field survey). Weathered soil is thick near the mountain top, but it is also found in the lowland other than that along the river. Colluvial deposits soil and loose sediments along the river are distributed in small scale in various parts. Quaternary volcanic rocks are not found in the neighborhood, and there are not many topographical deformations due to landslide. ○ Bypass tunnels Bypass tunnels were considered at a total of five points: one point at A, B, C, and D Passes and one at E through G.

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Topographic Outline

A B

Myitta C D

E F G

－ Target Road ○ Mountain Path

Geological Structure (Geological Root Profile)

Myitta

Carboniferous to Permian sedimentary rocks

＝ Bypass Tunnel (Postscript to the existing road profile) － Geological boundary

Source: JICA Study Team Figure 4.5.1 Topographic and Geological Outlines

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(2) Topography, Geology and Groundwater-level of the Bypass tunnel

The longitudinal geological profile of the tunnel was prepared (see Table 4.5.1) on the basis of field survey results while referring to the nearby rock state and checking if there was any surface runoff. The profile represents not only the assumed tunnel position, but also the rock type and state (the degree of weathering), and groundwater level, and provides comments concerning geological considerations for tunneling.

Table 4.5.1 Geological Profile of the Bypass tunnel A Geology；Fine-grained granite Length 1,700 m

A_TUNNEL PROOFILE L=1,700m

300 300 ［D］ 250 GROUND WATER LEVEL 250 ［D］ 200 ［］ 200 D talus deposit 150 ［B］［］ 150 TUNNEL GRANITE ［CL］ GRANITE CL 100 100

50 50

0 250 500 750 1000 1250 1500

Geological condition: The bedrock consists of fine leucocratic granite. Fresh rocks are extremely hard. The fissure interval is 1 m or more, with cliffs or precipices exposed over a wide area on the mountain slope. Surface water runs off from the higher portion of the mountain. Considerations, subject, etc.: Granite of fresh rock is extremely hard. The weathered layer is thick on the west side (start point), and the end point is covered with about 5 mm thick talus deposit. B Geology: Green schist - Black schist Length 1,300 m

B_TUNNEL PROOFILE L=1,300m

500 500 ［D］ 450 GROUND WATER LEVEL GREEN SCHIST‐BLACK SCHIST 450 ［D］［CL］ 400 ［CL］ 400 TUNNEL pebble soil 350 ［CH 350 300 300

250 GREEN SCHIST‐BLACK SCHIST 250

200 200

0 250 500 750 1000 1250 Geological condition: The bedrock consists of greenschist to blackschist. Fresh rock is hard. The bedrock tends to be separated along the schistosity plane when weathered, and its weathered layer tends to be thicker than granite. Large-scale failure, etc. was not observed in the cut slope (40 m high) of Saddle Hill. Considerations, subject, etc.: Greenschist of fresh rock distributed in the depth is hard, but the 20–100 m portion of subsurface ground is weathered and soft. C Geology: Breccia / Green schist Length 1,000 m

C_TUNNEL PROOFILE L=1000m

500 500

450 GROUND WATER LEVEL 450 ［D］［］［］ 400 CL D 400 TUNNEL talus deposit 350 350

300 ［CH］ 300 GREEN SCHIST GREEN SCHIST 250 250

0 250 500 750 1000 Geological condition: The bedrock consists of breccia and greenschist. Fresh rock is hard. In the Elephant Hill pass, small faults are observed in the cut slope, with differential weathering. But the slope (35 m high) is stable. Considerations, subject, etc.: Greenschist of fresh rock is hard, but the 20–50ｍ portion of subsurface ground is weathered and soft.

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D Geology；Green schist / Slate Length 1,000 m

D_TUNNEL PROOFILE L=1,000m

GROUND WATER LEVEL 500 ［D］［CL］ 500

450 450 talus deposit ［CL］ 400 TUNNEL 400 ［CH 350 350 GREEN SCHIST 300 GREEN SCHIST 300

250 250

0 250 500 750 1000 1250 1500 Geological condition: The bedrock consists of greenschist to clay slate. Gentle hills exist on the road side and its rock details are not confirmed. Geologically, it is estimated that there is a northwest to southeast fault. Considerations, subject, etc.: Greenschist of fresh rock distributed in the depth is hard, but the 20–100 m portion of subsurface ground is weathered and soft. Since this is located in a straight valley, the fault fractured zone may run parallel to the tunnel. EFG Geology；Green schist / Slate Length 750 m

EFG‐circuit route TUNNEL PROOFILE L=1,000mL=750m

GROUND WATER LEVEL 250 250 ［D］ 200 200

150 150 SCHIST ［CH］ 100 100 TUNNEL 0 250 500 750 1000 1250 1500 Geological condition: The bedrock consists of crystalline schist to clay slate. This is an isolated mountain left without erosion along the river. On the side facing the river, fresh rock is exposed over a wide area. Considerations, subject, etc.: This is a hard-rock distribution range along the river, in which the weathered layer is thin as a whole. The rock for tunnel is mainly a fresh rock, so that there will not be much problem, Source: Study Team

The topographical and geological conditions of the above five bypass tunnels suggest that the mountain tunnel is technologically feasible as described below:

 No fault fractured zone of substantial scale is observed near the tunnel.  Deformed terrain, such as landslide, collapse, etc., is not observed near the tunnel (portal).  Fresh rocks are equivalent to medium-hard to hard rocks, which are favorable for the arch effect of tunnel.  The permeability of basement rock is generally low, with the groundwater level located at high position.  The weathered layer around the portal is of a degree similar to the one distributed in ordinary mountain tunnels.

(3) Qualitative Evaluation of Full-phase road designed by ITALIAN-THAI DEVELOPMENT

The alignment of the proposed bypass tunnels and that of the planned full-phase (access) road was checked on the spot, and issues associated with construction of two-lane or four-lane road were reviewed while referring to the geological rock conditions around the road. Since the considerations and issues concerning the bypass tunnels have been already described, this section deals mainly with the issues of the full-phase road. The road alignment and field state at A, B, C, and D Passes (excluding the EFG section) are shown in Table 4.5.2.

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Topographic and Geological Issues for Full Phase Road by ITD

 In Pass A section (Tewadha Hill), fine leucocratic granite too hard for drilling is distributed. The angle of dip of the slope is about 50º and forms a sharp inclination. Over the entire surface slope at a relative height of 300 m, the hard rocks are exposed. Excavating the flat space of 10 m or wider in this rock slope is considered extremely difficult. It is necessary either to provide a large-sized earth retaining structure on the valley side or to construct a bridge over the entire length of 2.5 km.

 For the Pass B section (Saddle Hill), the cut-and-cover work is under way to construct the initial-phase road; a slope of 45 m in height (9 stages) is formed. The initial phase plans to further lower the roadbed by about 15 m. In the full phase, the pass section will be further lowered by about 15 m from the initial phase, and the section connecting to the pass will traverse a long distance through the hillside slopes to control the maximum vertical grade to about 5%. The current large-scale cut-and-cover slope work is without slope protection (reinforcement) and may develop readily slope failure during rainy season. Since the full-phase road will have a long slope, about 30 m longer than the present state, it is essential to consider the slope gradient and protection (reinforcement). Instability of the long slope of cut-and-cover section plus traversing the hillside slope for a long distance may possibly cause frequent slope disasters, resulting in failure of securing the flow of road traffic, after commencement of service.

 For the Pass C section (Elephant Cry Hill), a tunnel is planned also in the full-phase plan road. The tunnel is planned next to the south side of the existing road (cut-and-cover work under way for the initial-phase road). As large amount of soil generated during excavation of the pass is deposited on the upper slope of the tunnel portal on the start point side, stabilization measures may have to be taken for protecting the tunnel portal (upper slope).

 The D-section full-phase road is designed to suppress the maximum vertical grade of this section by passing the entire section between Passes C and D (15 km or more) not through the straight valley, but through the hillside slope. Though almost no earthwork is necessary for the straight valley where the existing road is located, the full phase road through the slope requires large number of cut slopes with a height of about 30 m. It is also necessary to plan large number of bridges. The cut slope may be said to be stable relatively, but the bypass tunnel (proposed) through the straight valley is considered preferable when considering the earth volume and the impact on the natural environment.

 For the EFG section bypass route (proposed), the initial-phase road and full-phase road, which pass through the valley, is to be bypassed to the lowland along the Tanintharyi River on the south side. It is difficult to suppress the vertical grade of this route is difficult because the full-phase road passes the mountainous area.

*: Field check is not done because the planned EFG full-phase road passes through the hillside on the north side while running out of the existing road. 4-19

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Table 4.5.2 Topographical and Geological condition of Bypass-tunnel and Full-phase road Mountain path A (Tewadha Hill) Site Photo

Steep escarpment ② ①→ ↓

① Hard Granite crops out widely. Earth Fill is being built in a valley side, because excavation of granite along the existing road is difficult.

Tewadha Hill EL.380m

②The Granite crops out, with a height of more than 200 m, and slope of more than 50 deg. Mountain path B (Saddle Hill) Site Photo

①Distant view of the Saddle Hill (from the west side). Cutting Slope height is 40 m. Full-phase road is planned at the right side of the cutting slope.

②Cutting slope of the Saddle Hill Reddish weathered depth is about 30m Mountain path C (Elephant Hill) Site Photo

①→ ①→

② Excavation material was disposed at West side slope of the Elephant Hill. ① Cutting slope of the Initial phase This area will be the upper slope of the road. Rather weathered Breccia outcrops planned Full-phase tunnel

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Mountain path D Site Photo

① Existing road in 'Mountain-pass D' passes through a wide straight valley. This area is easy for widening to a 4-lane road, except a tunnel section

Source: JICA Study Team

(4) Points on Tunnel Structure Development

 Power supply required Power supplies are necessary for tunnel construction equipment listed below. According to situation of target area, it is considered that power supply by generator is appropriate.

(1) Tunnel hole (inside) Drill jumbo, Shotcrete machine, Dust collector, Mortal pumping machine, Fan, Submersible pump, sliding arch concrete flame, Vibrator, Lighting, and others.

(2) Tunnel hole (outside) Compressor, Turbine pump, Batcher plant, Water filtration machine, Machine repair workshop, Submersible pump, Lighting, and others.

 Maintenance of Tunnel Structure

(1) Routine inspection for safety and endurance of tunnel is necessary. Any failure should be repaired as much as possible.

(2) Any problems of cracks along the axial direction and fixing stays/brackets, especially, those which may appear with time and may cause serious accident on passing vehicles, have to be repaired. Maintenance of structures after problems takes much long time than prevention works before the problems.

(3) It is important for a tunnel structure that whenever problems, even if small scale, are found at early stage by routine and/or periodic inspection/maintenance, they shall be repaired as soon as possible. Such routine maintenance keeps a structure in a good condition and protects passing cars from serious accidents.

Refer to the appendix titled “Presentation for Tunnel Method, A5-1, Maintenance”

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4.6 Road Improvement Impact (Travel Time Saving)

The total travel time of the Initial Phase Road for heavy trailers was estimated at 6.5 hours. On the other hand, the travel time of the Full Phase Road planned by ITD was estimated at 3.0 hours, and that of the proposed Full Phase Road was estimated at 2.8 hours. The reduction of traveling time of the access road in the Full Phase stage compared with the Initial Phase stage was estimated at approx. 3.7 hours.

Table 4.6.1 Effect of Improvement Measures (reduction of travel time)

Section DSEZ side Border side

Bottleneck - A B - C, D - E, F, G

Detour - Alt. 1 Alt. 2 - Alt. 2 - Alt. 2 (recommended route) Length (km) Total

Initial Phase Road 5.9 12.3 18.2 42.9 19.8 13.0 26.0 138.0 Full Phase Road 5.5 11.0 16.8 40.0 18.3 12.0 24.0 127.6 (ITD) Full Phase Road 5.5 9.4 17.5 40.0 18.3 12.0 28.3 131.0 (recommended route) Travel Time of Trailers (hours) Total

Initial Phase Road 0.2 1.2 0.9 1.4 1.0 0.4 1.3 6.5 Full Phase Road 0.1 0.3 0.5 0.8 0.4 0.2 0.7 3.0 (ITD) Full Phase Road 0.1 0.2 0.4 0.8 0.5 0.2 0.6 2.8 (recommended route) Source: JICA Study Team

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4.7 Rough Estimated Project Cost

The Study Team calculated the rough estimated project cost as follows.

4.7.1 Method of Calculating the Project Cost

(1) Construction Cost

The base cost of the construction was set as shown in the table below. The base cost will be corrected in accordance with the planned access road.

Table 4.7.1 Base Cost of Construction Structure Base Cost Conditions (Specifications)  Two-lane paved road Road 1.2 Million USD / km  Carriageway: AC (t = 10), Shoulder: DBST  Flat terrain Bridge/ 0.0225 Million USD / m  Girder type for two-lane road Viaduct 0.0378 Million USD / m  PC box type for two-lane road 20.8 Million USD / km  Two-lane road without ventilation facilities Tunnel 25.0 Million USD / km  Two-lane road with ventilation facilities Note: Base cost of road and bridge/viaduct of similar projects in Myanmar, such as Road Improvement Project on the East-West Economic Corridor by ADB, was referred to. Tunnel cost of projects and/or experiences in Japan was referred to. Source: JICA Study Team

(2) Cost of D/D and Supervising

The cost of D/D and supervising was estimated at 10% of the construction cost.

(3) Contingency

Price escalation and physical contingency was estimated at 20% of (1) + (2). Contingency was considered in view of the following:  The proposed alternative routes were planned based on a small-scale map without accurate contours, especially in the mountainous area.  The proposed tunnels were planned without adequate information on natural conditions, such as ground and underground water.

(4) Compensation

Compensation was estimated based on past performance. Total area to be compensated in initial phase and full phase is 2,700 acre and rough estimate for compensation is 5.4 billion MMK (500 MMK/km2). Unit price is defined based on above hearing information, i.e. 0.39 USD/km2. Adopted ROW is 40 m for 2-lane road and 80 m for 4-lane road.

(5) Project Cost

The project cost is the total amount of the above (1), (2), (3), and (4). 4-23

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4.7.2 Option 1

(1) Initial Phase

Constructing the two-lane Initial Phase Road (DOH Class 4)  The road length is 138.0 km including bridges (L = 1.5 km) and no tunnel.  The project cost is estimated at 286 million USD. (2) Second Phase

Constructing two-lane detour routes at bottlenecks (Asean Class 1)  The road length is 73.5 km including bridges (L = 3.7 km) and 5 tunnels (L = 5.9 km).  The project cost is estimated at 505 million USD. (3) Third Phase

Widening the two-lane detour routes to a four-lane road, and widening the two-lane Initial Phase Road without detour sections to a four-lane road (Asean Class 1)  The road length is 131.0 km including bridges (L = 7.2 km) and 5 tunnels (L = 5.9 km).  The project cost is estimated at 1,125 million USD.

4.7.3 Option 2

(1) Initial Phase

Constructing a two-lane road reflecting all detour routes at bottlenecks (Asean Class 1)  The road length is 131.0 km including bridges (L = 7.2 km) and 5 tunnels (L = 5.9 km).  The project cost is estimated at 824 million USD.

(2) Second Phase

Widening the two-lane Initial Phase Road to a four-lane road (Asean Class 1)  The road length is the same as the Initial Phase Road.  The project cost is estimated at 990 million USD.

4.7.4 Option 3

(1) Initial Phase

Constructing a four-lane road reflecting all detour routes at bottlenecks (Asean Class 1)

 The road length is 131.0 km including bridges (L = 7.2 km) and 5 tunnels (L = 5.9 km).  The project cost is estimated at 1,497 million USD.

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Table 4.7.2 Estimated Project Cost by Options Million USD Option Cost Items Initial Phase Full Phase Road Road Four-lane Total Two-lane Two-lane widening and detour (Class IV) (Class I) upgrading to Class I Construction cost 215 382 851 1,448 Option 1 Consulting fee 22 38 85 145 Compensation 2 1 2 5 Contingency 47 84 187 318 Total 286 505 1,125 1,916 Two-lane Four-lane with detour widening (Class I) (Class 1) Construction cost 623 748 1,371 Option 2 Consulting fee 62 75 137 Compensation 2 2 4 Contingency 137 165 302 Total 824 990 1,814 Four-lane (Class I) Construction cost 1131 1,131 Option 3 Consulting fee 113 113 Compensation 4 4 Contingency 249 249 Total 1,497 1,497 Source: JICA Study Team Note: ITD shared in February 2016 that the cost of option 1 of the initial phase was estimated at 140 million USD against the 215 million estimated by JICA. The difference between the two costs are the result of the following: (1) ITD did not consider overhead in its estimation, and (2) ITD and JICA study team defined topographic condition differently (ITD defined the topographic composition as 20%, 35%, and 45% of hill, mountain, and flat, respectively, while the corresponding composition of the JICA team was 50%, 50%, and 0%).

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4.8 Traffic Control Plan

It is desirable to introduce structural and non-structural measures for the traffic conditions categorized in Table 4. 8.1.

Table 4.8.1 Components of Traffic Control Plan Category Description Mark Keep Safety  Pedestrian in Community Area S-1  Guardrail in Mountainous and Community Area S-2  Traffic Signs, any Roadside Safety Facilities (e.g. Curve S-3 Mirror) for Critical Points Traffic Flow  Heavy Traffic Control on MOC Road (Impassable or time T-1 Control regulation) T-2  Speed Limit in Community Area T-3  Vehicle Speed Indicator / Monitoring and Penalties T-4  Area Pass License for Community Overload  Check Points and Strict Penalties O-1 Regulation Cross Border  One Stop Border Post C-1 Facilities  Non “Back-to-Back” System C-2  Security Check System for Cargo C-3  Smart CIQ C-4 Source: JICA Study Team

Source: JICA Study Team Figure 4.8.1 Proposed Location of Each Traffic Control Plan

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5．Environmental and Social Considerations

5.1 Natural Environment

5.1.1 Project Components to be considered

(1) Project Component

The project component addressed by this study is the access road component of the DSEZ development program summarized in Chapter 2. The study specifically targets the road section starting from about 140 km from DSEZ to the border with Thailand. Depending on the two phases of DSEZ, the access road can be divided into two phases: “initial phase” and “full phase.” In this study, the current situation of environmental and social consideration in the target area is confirmed, and its scoping for the ”initial phase” is implemented.

(2) Status of EIA Report Preparation

According to the stipulation of the agreement between the Myanmar Government (DSEZ Management Committee) and the ITD Consortium, the EIA report must be submitted no later than three months after its conclusion. The agreement of this project was concluded in August, 2015, but the EIA report has not been submitted as of end 2015. The interview survey of the relevant organizations indicates the possibility of submitting the report around the beginning of 2016. The inventory survey of local residents for environmental and social consideration, i.e. land acquisition and resettlement, was conducted for about two months from January, 2015. During the survey, meetings with residents of ten villages along the route concerned were held. A second meeting with residents will be held in the future, followed by summarization of the results and submission of the official EIA report to the Myanmar Government (Ministry of Dawei Township Environmental Conservation and Forestry). At present, it is said that the final report of EIA Procedure was approved by the Myanmar cabinet.

5.1.2 Study Area

The target access road is located in Tanintharyi Region, Myanmar. The access road runs starting from SEZ, Source: Region Profile, UNHCR Figure 5.1.1 Location of Tanintharyi Region and Dawei Township

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5.1.3 Current Situation in terms of Baseline of Environment and Social Considerations

(1) Outline

Tanintharyi Region is located in the south of Mon State at the base of Malay Peninsula in the southern part of Myanmar, facing the Andaman Sea to the west and bordering Thailand to the east. It is a slender state with the area of 43,328 km2, running for 580 km from north to south. The capital of Tanintharyi Region is Dawei, with about 140,000 people living at the mouth of the Dawei River. In the past, the region was prosperous with rubber and pepper plantations, but recently cultivation of palm oil is popular. In the coastal area, new developments, such as oil and natural gas drilling, are expected. On the other hand, Dawei is geographically far from Yangon and Naypyitaw, the main cities of Myanmar, and it has no specific industries other than those mentioned above. It is said that there are considerable number of residents who migrate to the area bordering Thailand or Bangkok for work. There are cases of workers working away from home and then straightly migrating to Thailand, etc. and there are also considerable numbers of residents who make a living on the earnings obtained in Thailand. It is estimated that around 200,000 workers from Tanintharyi Region are working in Thailand.

(2) Meteorology and Rainfall

Tanintharyi Region is located along the coast facing the Andaman Sea, and it has a tropical monsoon climate. Dawei, the capital of Tanintharyi region, is one of regions with high rainfalls, recording an annual rainfall of as much as 5,500 mm.

Source: Myanmar Information Management Unit Figure 5.1.2 Regional Rainfall Data of Myanmar

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(3) Population and Households

According to the census conducted in 2014, the population of Tanintharyi Region is about 1.4 million, the 11th most populous region, next to the Kayin State, among the 14 states and regions of the country. It accounts for 3% of the Myanmar’s total population. The region consists of three districts (Dawei District, Myeik District, Kawthaungy District), 10 townships (including 6 relatively large sub-townships), and 265 villages. The number of households is about 280,000, and the average household membership is 4.77 persons.

Table 5.1.1 Population by Areas in Tanintharyi

Total Population Conventional households Institutions District Township Remark Name Name Both sexes Males Females Households Population HH Size Population DAWEI Dawei 125,239 59,941 65,298 24,980 115,196 4.61 10,043 Myitta 21,032 10,420 10,612 4,236 20,456 4.83 576 Sub-Township Launglon 118,301 55,735 62,566 25,700 114,972 4.47 3,329 Thayetchaung 105,599 50,591 55,008 22,881 103,080 4.51 2,519 Yebyu 100,295 50,536 49,759 22,103 95,806 4.33 4,489 Kaleinaung 21,811 11,614 10,197 4,287 19,774 4.61 2,037 Sub-Township MYEIK Myeik 284,037 139,490 144,547 54,341 273,192 5.03 10,845 Kyunsu 171,514 87,731 83,783 32,998 168,355 5.10 3,159 Palaw 93,720 45,431 48,289 18,532 92,353 4.98 1,367 Palauk 36,725 18,151 18,574 7,130 36,024 5.05 701 Sub-Township Tanintharyi 106,884 54,864 52,020 19,936 102,774 5.16 4,110 KAWTHOUNG Kawthoung 116,722 59,561 57,161 25,482 112,179 4.40 4,543 Khamaukgyi 23,050 12,679 10,371 4,803 20,965 4.36 2,085 Sub-Township Bokpyin 46,772 25,015 21,757 8,799 42,922 4.88 3,850 Pyigyimandaing 16,491 8,733 7,758 3,080 15,300 4.97 1,191 Sub-Township Karathuri 18,242 9,911 8,331 3,778 17,123 4.53 1,119 Sub-Township 1,406,434 700,403 706,031 283,066 1,350,471 4.77 55,963 Source: Population and Housing Census of Myanmar, 2014

(4) Ethnic Minority Groups, Refugees, and IDPs

Ethnic minorities, such as Bamar, Kayin, Mon, etc., are living in Tanintharyi Region. Among them, the ethnic Kayin set up the Christian Political Unit, KNU (Karen National Union), and engaged in armed struggle against the government in alliance with the antigovernment armed group called the Karen National Liberation Army (KNLA). As a result, there are ethnic Kayin refugees from Tanintharyi Region who fled to Thailand.

Table 5.1.2 Number of Refugees and IDPs Township Refugees (2013) IDPs (2012) Dawei 4,403 5,600 Launglon 0 0 Thayetchaung 24 4,100 Yebyu 52 23,500 Myeik 972 6,050 Tanintharyi 242 14,640 Kyunsu 0 0 Palaw 273 14,540 Kawthaung 14 0 Bokpyin 30 3,220 Total 6,105 71,650 Source: UNHCR

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In spite of refugees and internally-displaced persons (IDPs) as above described, many of them are returning to Myanmar as the armed conflict between the KNLA and government has almost stopped recently (for about three years), and the civil order is being restored rapidly. The number of confirmed villages within the Tanintharyi Region where refugees are returning to is up to 35, of which nine villages are within the Dawei Township. Among these are also two to three villages located along the DSEZ access road. According to the household statistics, 700 households (with less than 4000 people) have returned to the state. Of these households, those who have returned to Dawei Township are 114 households with 420 people. According to the result of a survey conducted in two refugee camps (opened in 1980s) in the Tanintharyi Region, near the border with Thailand, the recent stabilization of the situation is expected to lead to a relatively large-scale refugee returns (around 10,000 IDPs) in the future. Since the two camps are said to contain many refugees from Tanintharyi, the number of the returnees to Tanintharyi Region may be large. Actually, it is not known and hard to estimate where these refugees will return to, and it is practically extremely difficult to estimate how many refugees will return to the wayside area of the DSEZ access road.

(5) Roadside Land-use along DSEZ Access Road

There are about 30 villages, with about 85,000 villagers, dotted along the road from Dawei to the border with Thailand. Most of these villages are concentrated in the section between Dawei and Myitta.

(6) Policy for Forest Conservation

It is reported that Tanintharyi Region has lost 28% of its tropical forests area in 10 years, from 1990 to 2000. Although the principal causes of the deforestation are commercial timber production, illegal logging and land use, etc., the deforestation for commercial palm oil and rubber forest plantations has also contributed. In order to stem such reduction of the forest area, the government has established a National Forestry Policy in 1995, with a goal of turning an area equivalent to 5% of national land into the forest area while adopting the protective area system with the 2005-2006 budget. The long-term master plan on forestry developed in 2001 (Forestry Restoration 30-year Long-term Plan) sets forth the expansion of the forestry area to 10% of the national land by 2017.

(7) Conservations in Myanmar and Study Area

According to the world nature conservation database by United Nations Environment Programme (UNEP) and International Union for Conservation of Nature and Natural Resources (IUCN), there are 57 nature-conservation related districts as designated internationally or domestically in Myanmar covering 48,592 km2, which account for 7% of the country’s total land. When those under application or examination are included, the area becomes about 57,000km2, which is equivalent to 8.5% of the country’s total land. Five of these natural conservation areas are within Tanintharyi Region. In the area close to the DSEZ access road, the Tanintharyi Naturel Reserve and Tanintharyi National Park are located on south and north sides. On the other hand, Wildlife Conservation Society (WCS), having its headquarters in New York and

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Data Collection Survey for Southern Economic Corridor in Myanmar undertaking research activities on wildlife conservation in 65 or more countries of the world, developed in January, 2013 the “Myanmar Biodiversity Conservation Investment Vision” through partnership with the Ministry of Environmental Conservation and Forestry of Myanmar and 30 or more related UN organizations and universities. The Vision identified 132 Key Biodiversity Areas (KBAs) in Myanmar, of which 42 areas were designated as high priority areas. In the Tanintharyi Region, about 42,880 km2 including the area through which the DSEZ access road passes is designated as the “Tanintharyi Range Corridor” in which the wide continuous KBA area spreads.

48 41

2 27

32 30 33

Protected Area 29

22 18 28

Source: Conservation Platform, UNEP & WCMC Figure 5.1.3 Forest Conservation Areas and National Parks in Myanmar

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Table 5.1.3 List of Natural Conservation Areas in Myanmar

Designation Type/ Designation in English / Name of Protected Areas Status Year of designation Area (km2) International Ramsar Site, Wetland of International Importance 1 Moeyongyi Designated 1988 103.60 Regional ASEAN Heritage Park 2 AlaungdawKathapa Designated 1989 1,402.74 3 Hkakaborazi Designated 1998 3,812.33 4 Indawgyi Designated 2004 814.96 5 Inlay Designated 1985 557.55 6Lampi Island Designated 1996 204.84 7 MeinmahlaKyun Designated 1993 136.69 8 Natmataung Designated 2010 713.52 National Bird Sanctuary 9 Inlay Wetland Designated 1985 557.55 10 Moeyongyi Wetland Designated 1988 103.60 11 Pyin-O-Lwin Designated 1927 127.24 12 Taunggyi Designated 1920 16.06 13 Wethtikan Designated 1939 4.01 Botanical Garden 14 National Botanical Gardens Designated 1915 1.40 Elephant Range 15 North Zamari Proposed 2012 983.10 16 RakhineYoma Designated 2002 1,755.64 Game Sanctuary 17 Maymyo Designated 1918 126.90 Marine N. Park 18 Lampi Island Designated 1996 204.84 Mountain Park 19 Popa Designated 1989 128.54 National Park 20 AlaungdawKathapa Designated 1989 1,402.74 21 Hkakaborazi Designated 1998 3,812.33 22 Lenya Proposed 2002 1,766.31 23 Lenya (extension) Proposed 2004 1,398.55 24 Natmataung Designated 2010 713.52 25 Pegu Yomas Proposed 0 1,463.35 26 Tanintharyi Proposed 2002 2,589.90 Nature Reserve 27 Bawditahtaung Proposed 2008 72.52 28 Pakchan Proposed 1983 1,451.96 29 Tanintharyi Designated 2005 1,699.93 Not Reported 30 Bago Yomas Designated 00.00 31 Nam Lang Designated 00.00 32 Tanlwe-ma-e-chaung Designated 00.00 33 Taungup Pass/Thandwe-chaung Designated 00.00 Other Area 34 Myaing Hay Wun Elephant Research Camp Designated 1986 0.04 35 Sein-Ye Forest Camp Designated 1996 0.41 36 Yangon Zoological Gardens Designated 1906 0.28 Park 37 Hlawga Designated 1989 6.24 Protected Area 38 Loimwe Designated 1996 42.01 39 Parsar Designated 1996 77.02 Reserved Forest 40 Wunbaik Designated 0 229.19 Wildlife Sanctuary 41 Bumhpabum Designated 2004 1,854.37 42 Chatthin Designated 1941 260.05 43 Chungponkan Designated 2013 2.20 44 Dipayon Proposed 0 13.60 45 Hponkanrazi Designated 2003 2,703.86 46 Htamanthi Designated 1974 2,150.65 47 Hukaung Valley Designated 2004 6,371.15 48 Hukaung Valley (extension) Designated 2010 11,001.90 49 Indawgyi Wetland Designated 2004 814.96 50 Kadonlay Kyun Proposed 0 2.59 51 Kahilu Designated 1928 160.57 52 Kelatha Designated 1942 22.64 53 Kyaikhtiyoe Designated 2001 156.20 54 Kyauk Pan Taung Designated 2013 130.61 55 Lawkananda Designated 1995 0.47 56 Letkokkon Proposed 0 3.88 57 Maharmyaing Proposed 2002 1,180.35 58 MeinmahlaKyun Designated 1993 136.69 59 Minsontaung Designated 2001 22.56 60 Minwuntaung Designated 1972 205.87 61 Moscos Islands Designated 1927 49.21 62 Mulayit Designated 1935 138.56 63 Panlaung-pyadalin Cave Designated 2002 333.79 64 Pidaung Designated 1927 122.06 65 Shinpinkyetthauk Proposed 2006 71.90 66 Shwesettaw Designated 1940 464.08 67 Shwe-U-Daung Designated 1927 176.01 68 ThamihlaKyun Designated 1970 0.88 Source: Conservation Platform, UNEP & WCMC

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Source: Myanmar Biodiversity Conservation Investment Vision, Wildlife Conservation Society, 2013

Figure 5.1.4 Key Biodiversity Areas (KBA) in Myanmar

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(8) Fauna and Flora in Myanmar

Because of the wide national land covered by four climatic divisions, Myanmar enjoys worldwide fame for its high biodiversity. Although the species list and the national inventory are not yet completed, 350 species of mammals, 300 species of reptiles, 350 species of fresh-water fishes, 800 species of butterflies, 1035 species of birds, and 9600 species of plants have been identified. Regarding mammals, tigers (Panthera tigris), Asian elephants (Elephas maximus), red panda (Ailurus fulgens), etc. are included in the endangered B1 category. Indigenous specifies, such as Eld’s deer, Asiatic black bears, Himalayan goats, red antelopes, gaurs, clouded leopards, Asiatic golden cats, Asian wild dogs, etc. are included in the vulnerable species. Source: Better Road to Dawei, WWF 2015

Figure 5.1.5 Endangered Mammals (Category-IB and II) habitats

Table 5.1.4 Endangered Species listed in Red List of IUCN (Number) I-A Rank I-B Rank II Rank Category Total (CR) (EN) (VU) Mammals 4 10 26 40 Birds 5 7 37 49 Reptiles 6 13 6 25 Invertebrates 0 0 1 1 Plants 13 12 13 38 Total 28 42 83 153 Source: International Union for Conservation of Nature and Natural Resources (IUCN)

It is not known which species inhabit in the area through which the Tanintharyi access road passes. But it has been confirmed that, regarding mammals, tigers and Asian elephants (Endangered), Ellesmere deer and Asiatic black bears (Vulnerable) etc. are living in the target areas.

5.1.4 Regulation and Organization for Environmental and Social Considerations in Myanmar

(1) Chronology and Relevant Laws on Environmental Impact Analysis (EIA)

The principal laws and regulations related to environmental and social considerations in Myanmar are

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as follows:

 Forestry Law, 1992  Protection of Wildlife and Wild Plants and Conservation of Natural Areas Law, 1994  Public Health Law, 1972  Factory Act, 1951  Territorial Sea and maritime Zone Law, 1977  National Environment Policy, 1994  Mines Law, 1994  Freshwater Fisheries Law, 1991  Marine Fisheries Law, 1990  Law on Aquaculture, 1989  Irrigation Laws and Regulations, 1982  The Conservation of Water Resources and Rivers Law, 2006  Environmental Conservation Law, 2012  Environmental Conservation Rules of Environmental Conservation Law, 2014  Environmental Impact Assessment Procedure, 2015  Government ordinance (being prepared) concerning the qualified personnel and operator registration for implementation of the environmental impact assessment  National Environmental Quality (Emission) Guidelines, 2015

Specifically important laws are described below.

1) Environment Ordinance

The 2008 Constitution provides that the Pyidaungsu Hluttaw (Union Parliament) shall protect and conserve the natural environment (Chapter 1, Section 45). On the other hand, the constitution prescribes, but does not mandate, the Union Parliament to implement conservation and restoration of damaged environment (Chapter 4, Section 96). The Constitution stipulates that it is the duty of the citizens to assist the Union in carrying out the environmental conservation activities (Chapter 8, Section 390), but does not have any article guaranteeing the citizens with “the right to desire a hygienic and healthy living environment” that is generally guaranteed by the constitution. In addition, this constitution does not contain any clear statement concerning sustainable development, freedom of information transaction, right to participate in environmental resources management, conventional land ownership, information transaction in traditional language, distribution of social wealth, etc.

2) The Protection of Wildlife and Conservation of Natural Areas Law, 1994

This law stipulates implementation of the wildlife protection and conservation, implementation of the pertinent governmental policies, and implementation of studies, researches and developments, but does not specify any specific numerical criteria. The law gives the mandate of the implementation to the Ministry of Environmental Conservation and Forestry.

3) Environmental Conservation Law, 2012

The Environmental Conservation Law was enacted in March, 2012, under the leadership of the Ministry

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Data Collection Survey for Southern Economic Corridor in Myanmar of Environmental Conservation and Forestry established in September, 2011. This Law consists of 14 chapters, stipulating the responsibilities of the ministry, environmental standards, environment conservation, preservation of natural resources and cultural heritages, urban environment management, business permit/approval of enterprises and operators possible impacting the environment, breaches and penalties, etc. Actual implementation rules of this law were stipulated in the Environmental Conservation Rules. The rules were approved by the Minister of Environment Conservation and Forestry in February, 2013, followed by the procedure for approval of the Union Parliament (as of February, 2013).

4) Environmental Impact Assessment Procedure, 2015

Since the establishment of the Ministry of Environment Conservation and Forestry in 2011, the EIA Procedure has been drafted after it was revised seven times. The draft final report revised in September 2015 was submitted by the Minister of Environment Conservation & Forestry to the Myanmar cabinet in October 2015 and finally approved in December 2015.

(2) EIA Legal Framework in Myanmar

1) EIA Regulation

Since the new Foreign Investment Law entitled in January 2013 made a prerequisite for obtaining business permission, Myanmar approved the government ordinance concerning the environmental impact assessment (EIA Procedure) in December 2015. Thus, the EIA Procedure is applied for all kind of EIA process in Myanmar. Before EIA procedure was officially approved, a draft version of EIA procedure had been applied since 2012.

2) Environmental Quality Guidelines

Though the environmental standard is to be stipulated on the basis of Environmental Conservation Law in Myanmar, no much progress has been actually made in developing it. But each government agency has developed its own standard guideline; the City of Yangon has set forth the standard for discharge of sewage water, and the Mining Ministry has established the effluent standard and exhaust gas standard.

3) EIA implementation

Because of the inadequate legal system and insufficient experiences, other donors often provide supports. For example, in the case of Thilawa SEZ, JICA supported the preparation of the EIA procedure and the Resettlement Work Plan.

(3) Relevant Organizations (Executing Ministry for Environmental and Social, Other Ministries, NGOs)

1) Ministry of Environment and Conservation Forest (Head Office)

This Ministry is in charge of decision-making, upper-level planning, and establishment of laws and

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Data Collection Survey for Southern Economic Corridor in Myanmar systems concerning natural conservation in Myanmar, and the ministry also undertakes EIA-related activities, such as establishment of various legal frameworks and examination of the reports. This is a new ministry established in 2011, before which the environmental-impact related matters were left without regulation. In addition to the EIA Procedure, the system has been augmented with the support from European countries (particularly, Sweden).

2) Conservation Department in Tanintharyi, Ministry of Environment and Conservation Forest

Only the division engaged in monitoring of natural reserve in the Ministry of Environment Conservation and Forestry is located, as a local agency, in Dawei of Tanintharyi Region. As the State has an affluent forestry corridor over a wide area, there is a special local agency monitoring the natural conservation. Around 20 staff members are working in this local agency, and members that are more specialized are coming from all over the country.

3) Ministry of Welfare

A division in charge of resettlement is located here as a part of the Ministry. This division is in charge of matters related to resettlement occurring in the course of projects implemented in Myanmar. In the case of DSEZ, however, the division’s role is limited to giving advices. The mattes related to resettlement are dealt with by the committee to be described later.

4) WWF (World Wide Fund for Nature)

In July, 2014, MOU related to the Biodiversity Conservation Program of Myanmar was concluded between WWF and MOECF. The memorandum includes a plan to implement various researches on biodiversity conservation within five years of valid period. As a part of this program, a joint research has been conducted on environmental impacts of the Dawei SEZ access road, and the result was publicly published by WWF in June 2015. During the research, WWF conducted a site survey in collaboration with the local agency of MOECF. The title of MOU is “Cooperation in the Field of Biodiversity Conservation in Myanmar,” to which Director Generals of Planning and Statistics Department, Forest Department, and Environmental Conservation Department from MOECAF appended the signature.

5) FFI (Fauna & Flora International)

This organization is actively engaged in forestry protection or management.

6) Hong Kong University

A research on the road structure from the ecological viewpoint is under way in the University of Hong Kong. The draft final report was submitted in September, 2015.

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5.1.5 Scoping

Concerning the environmental and social impact of the target activities (the initial phase), the scoping was conducted the table below shows the results.

Table 5.1.5 Scoping Results Evaluation Classifi Before -cation Impacts and In Reason for evaluation during service work 1 Air pollution B- C/B+ During work: Deterioration of air quality is expected, though temporarily, due to operation of construction equipment. In service: Depending on the degree of increase in the traffic volume, negative effects of exhaust gas of traveling vehicles on the air quality is expected. On the other hand, pavement of unpaved roads can alleviate effects of fine dusts. 2 Water pollution B- B+ During work: Water quality may be deteriorated due to effluents from the work site, heavy machinery, vehicles, and accommodation of workers. In service: Adequate slope treatment is expected to reduce inflow of soil, which is produced by erosion during rainfall, into the river. 3 Wastes B- B- During work: Construction waste soil and waste materials may be produced. In service: There is a concern for increase in illegally bringing in external wastes, which may adversely affect the environment. 4 Soil pollution B- D During work: Possible soil pollution may be considered due to spillage of construction oils. In service: Road maintenance that may cause soil pollution is

Pollution abatement not planned. 5 Noise and vibrations C- D During work: Noise due to operation of construction equipment and vehicles is expected. In service: The region (houses, schools, medical facilities) sensitive to the situation around the target road, if any, may be exposed to the noise caused by increase in the traffic volume and travel speed. Since these facilities are not located in large number in the target area, the effects of noise may be limited. 6 Ground subsidence D D It is expected that adequate route selection can suppress any phenomena causing subsidence. 7 Offensive odors D D No works causing odor is n planned. 8 Deposit D D No works causing adverse effects on the deposit is planned. 9 Protected area B- B- There are no internationally or domestically designated national parks or protected areas. But the road may possibly pass through the valuable wildlife habitat range. 10 Ecosystem A/B- A/B- Some adverse effects on the ecosystem may possibly occur because the road passes through the habitat range where tigers, Asian elephants, and other rare animals live. 11 Hydrology C- C- During work: Due attention must be paid on change of the flow and river bed at the area along the river and at river crossing points. In service: The flow regime may possibly change when bridge structures, such as piers, etc., are constructed in water. Natural environment 12 Topography and geology B- B- Adverse effects on topography and geology may be expected because large-scale cutting is planned in a part of project section. 13 Resettlement B- D Before work (during planning): Resettlement of 50 to 60 households may be expected due to land acquisition for road construction. 14 Poor B- B+ Before work: The poor people, mainly farmers, may be included in resettlement.

Social In service: The poor people are expected to be positively affected when the unpaved road is paved, including improved environment environment social services (schools, hospitals, and employment, etc.) and accessibility to the market.

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Evaluation Classifi Before -cation Impacts and In Reason for evaluation during service work 15 Ethnic minorities and B- B- Ethnic minorities, such as KNU, etc., are located along the indigenous peoples target road. 16 Local economy, such as B- B+ Before work: Resettlement may cause loss of livelihood employment, livelihood, temporarily when the livelihood of residents to be resettled is etc. mainly agriculture. In service: On the other hand, once in service, the road is expected to provide the positive effects, such as improvement of accessibility to the market. 17 Land use and utilization B- B- During work ( in service): Unless adequate measures are of local resources taken, there is a concern that destruction of nature by illegal activities such as logging, may be accelerated because unspecified number of passages is facilitated. 18 Water usage C- D During work: Effects of turbid water may be expected during work when water of the rivers around the target project site is used. In service: Change in water usage is not expected. 19 Existing social B- C During work: Traffic congestion during work is expected. infrastructures and social In service: When there is any sensitive region (houses, services schools, medical facilities, etc.) along the target road, increase in the traffic volume and travel speed may possibly cause increase in traffic accidents. 20 Social institutions such as D D Almost no impact exists on the social infrastructure or local social infrastructure and decision-making institutions. local decision-making institutions 21 Misdistribution of D D Unfair damages and benefits will not be brought about to the damages and benefits surrounding areas. 22 Local conflicts of interest B- B Ethnic minorities live along the target road and control a certain area effectively. In case of passage through such area, the compensation related to such passage may be demanded. 23 Cultural heritage D D There is no cultural heritage in and around the project site. 24 Landscape B- B Because the road passes through the forests and mountainous areas, large-scale cutting, structures, etc. may affect the landscape. 25 Gender B+ B+ Creation of gender employment and simplification of daily activities (buying of daily commodities, etc.) are expected. In addition, improvement of accessibility between regions may increase an employment opportunity. 26 Children’s rights C B+ Shortening of the commuting time to school through improvement of accessibility to schools and hospitals may be one beneficial effect. It is also expected that the opportunity of attending distant schools increases. 27 Infectious diseases, such B- D During work: Though no large-scale work is assumed, inflow as HIV/AIDS of workers may cause widespread infection. 28 Working conditions B-/B+ B+ During work: It is necessary to pay attention to the labor (including occupational environment of construction workers, but creation of safety) employment from wayside villages may be expected. In service: Creation of employment of wayside residents, such as maintenance-related light works, etc., is expected. 29 Accidents B- B- During work: Due attention must be paid to prevent accidents during work. In service: There is a concern that increase in the traffic volume and travel speed may cause increase in traffic accidents. Other Other 30 Trans-boundary effects B A+ Stimulation of the economy is expected through increased and climate change cross-border traffic and active exchange between the two countries. A+/-: Significant positive/negative impact is expected. B+/-: Positive/negative impact is expected to some extent. C+/-: Extent of positive/negative impact is unknown (A further examination is needed, and the impact could be clarified as the study progresses). D: No impact is expected.

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By extracting the items considered particularly critical from above scoping results, the TOR below was prepared. TOR is considered to contain items to be discussed in detail in the EIA report under preparation by ITD.

Table 5.1.6 Study Items to be considered in EIA Report Classifi Impacts Evaluation viewpoint -cation Temporary deterioration of air quality due to movement of construction equipment during work and negative impact of exhaust gas from Air pollution traveling vehicles on air quality due to increase in the traffic volume in the in-service phase. Possibility of water pollution by effluent from the work site during work. Adequate slope treatment after the road is in service is expected to Water pollution reduce inflow of eroded soil during rainfall into rivers. Monitoring and confirmation of any negative impact are necessary. Monitoring is necessary for construction waste soil and construction Wastes wastes produced in the course of work and illegal dumping of wastes brought in after the road is in service. Regular monitoring of the effects on tigers, Asian elephants, and other Ecosystem precious animals is indispensable. Anti-pollution measures Anti-pollution measures Detailed analysis is necessary concerning the topographical and Topography and geology geological effects at the large-scale cut portion. Since 50 to 60 households are expected to be resettled, the response plan Resettlement must be duly considered. It is highly possible that poor people, mainly dependent on agriculture, Poor are living along target road. It is necessary to study in detail the kind of impacts is expected after road development. Ethnic minorities, such as KNU, live along the target road. It is Ethnic minorities and indigenous necessary to study in detail, conduct various negotiations in case of people resettlement. Resettlement may cause loss of livelihood temporarily when the Local economy, such as employment, livelihood of residents to be resettled is mainly agriculture. Though livelihood, etc. compensation for such loss is not required legally, it is still necessary to study in detail the degree of impact and possible measures. Land use and utilization of local Adequate measures must be studied because unspecified number of resources passages is facilitated. Ethnic minorities live along the target road and control a certain area effectively. In case of passage through such area, the compensation Local conflicts of interest related to such passage may be demanded. Study must be done on how

Social environment environment Social the response to such situation should be. Because the road passes through the forests and mountainous areas, Landscape large-scale cutting, structures, etc. may affect the landscape. Adequate evaluation and study is necessary. Study on policies mainly necessary to secure the safety of wayside Accident residents both during work and after the road is in service. Trans-boundary effects and climate Study on the degree of economic stimulation expected through increased change cross-border traffic and active exchange between two countries. Source: JICA Study Team

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5.1.6 Monitoring Plan

The EIA report prepared by ITD, in which the monitoring plan is considered to be included, will soon be submitted. But the contents are not confirmed as of present. On the other hand, items described in the local survey for preparation of the EIA report are selected as parameters to be monitored, which in turn may possibly be set as monitoring plan indices in EIA.

Table 5.1.7 Parameters to be monitored Parameters Monitoring Station (Target Area) Air/Bad Smells/ Vibration Station1：near KM18+000, Tha Laing Ya Village Station2：near KM73+000, Vista Point Station3：Tiki Border Surface Water Quality/Water Dawei River Ta Byu Chaung fauna Ka Maung Thwe Chaung, Myitta Ye Byu Shaung Base 3, Tanintharyi River Tanintharyi River Shi Byu Daing, Tanintharyi River Traffic Volume Two (2) locations along the Access Road (exact locations were not confirmed) Land Fauna/Land Use Within ROW of Access Road Source: Site Survey for EIA Preparation by ITD and Interview by JICA Study Team

5.2 Land Acquisition and Resettlement

5.2.1 Necessity for Land Acquisition and Resettlement

(1) Right of Way

Forest and mountainous areas spread along the target route from DSEZ to the border with Thailand. Though no large cities are located, small villages of a few to several hundred households scatter mainly along the river or in the flatland. Since the target road passes through the above area, relocation of the residents’ land and houses as well as plantations will be needed in various locations. Initially, ROW of access road was set to 200 m in the full phase, but the Myanmar Government and ITD reviewed this standard and reduced it to 80 m. Accordingly, resettlement could be downsized. The ROW in the initial phase is basically 40 m, but ROW at the toll gates (near the intersection), and the ROW of the section with large-scale cutting is wider than this; actually, ROW of the sections before and after the toll gate is 190 m.

5.2.2 Legal Framework for Land Acquisition and Resettlement

(1) Organizations

In Myanmar, the Ministry of Construction, Ministry of Social Welfare, Relief and Resettlement, Ministry of Agriculture and Irrigation, and the Regional Governments are in charge of mattes related to land

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(2) Law System

Myanmar has had laws concerning land acquisition and resettlement since the 19th century. However, no these laws have not been revised since then, and the land law to function as a basic law is currently being developed. The 1974 Constitution stipulates that the total national land and resources are government-owned. It states that all of the resources above and below ground, resources above and below water, and the airspace are all government-owned. The land is roughly divided into “agricultural land” and “non-agricultural land.” The “agricultural land” includes the lands appropriate for agriculture, but left in fallow at present. The “non-agricultural land’ means all of lands other than the agricultural lands. If not actually used for agriculture, the “agricultural land” can be expropriated (expropriation may be done when the land has not been actually used for four years). The land is expropriated also when the “agricultural land” is used for purposes other than agriculture. In this event, penalties are also stipulated (Land Ownership Law 1963). Later on in 2012, the Farm Land Law 2012, which stipulates the agricultural land use right, was established and put into effect. This law gives the land use right to farmers and at the same time grants them the right to transfer (trade), exchange, or lease.

(3) Regulations on Land Acquisition and Resettlement in Myanmar

In Myanmar, the legal framework for improvement and settling of issues related to land acquisition and resettlement is not well established.

5.2.3 Area and Scale of Land Acquisition and Resettlement (Scope of Resettlement Impact)

(1) Target Area

The access road includes the existing construction road, and the initial-phase and full-phase roads, which have different alignments. Basically, these routes will not be changed substantially in terms of the alignment and position, but the alignment of certain sections of the initial-phase and full-phase roads is not yet finalized. Now, ITD, the concessionaire for the initial phase, is undertaking a survey on the number of households along the initial-phase road over 500 m wide area on each side of the centerline.

(2) Resettlement Scale

As the result of survey along the road, it is reported that the number of households that potentially could be affected is 1,700, of which 120 households are within the road ROW and should be resettled. If small shops (which are 57) are excluded, the number of households that should be resettled decreases to 63.

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Table 5.2.1 Village Profile along the DSEZ Access Road Affected Volume Number of Section Name of Village Direct Impact Indirect Impact Household Houses Plot Households 1. Dauk Lauk 19 2 11 10 2. Ta Laing Ya 48 2 37 10 3. Pa Dao Geou 68 2 15 4. Tha Loat Htar 182 2 28 35 Section 1 5. Tha Khat Done 33 2 18 10 6. Ye Bouk 28 2 13 10 7. Tha Byu Chaung 59 2 15 15 8. Pyin Tha Daw 79 39 15 9. Taung Thone Long 386 2 73 10. Myitt 372 1 68 71 Section 2 11. Sin Byu Daing 103 11 16 20 12. Va Do 54 3 31 10 13. Amu 130 5 6 25 Section 3 14. Gad Tra Khee 66 3 12 13 15. Hti Hkee 85 85*1 29 16 Total 1,712 120*1 327 348 *1: including 63 small shops Source: Site Survey for EIA Preparation by ITD

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Hti Hkee Amu Va Do Gad Tra Khee Sin Byu Daing Myitta Tha Byu Chaung Taung Thone Long Tha Daw Ye Bouk Pyin Tha Loat Htar along the DSEZ Access Road along the DSEZ Tha Khat Done Pa Dao Geou Ta Laing Ya Dauk lauk Figure 5.2.1 Major Communities

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5.2.4 Compensation System

(1) Compensation for Loss of Properties

The compensation related to development of the DSEZ access road is applied to the following cases:

 Compensation concerning the land use right  Compensation for houses and belongings  Compensation for stocks  Compensation for plantations (including timbers, crops, and plants)  Rights associated with land ownership（right of sunshine, access right, fishery right）

(2) Compensation for Rebuilding Livelihood

At present, the scheme related to resettlement of residences on the Myanmar Government side is not clear. Accordingly, no compensation related to involuntary resettlement of residences has been done in the development of the DSEZ access road. ITD has implemented, for example, a short-term occupational training (computer training, simple agricultural support. etc.) as part of CSR activities toward the region. This may be considered as a part of residents skill improvement activities for resettlement of habitation and incorporation of such activities in the scheme related to resettlement of habitation on the Myanmar Government side will prove effective in the future.

(3) Relocation Site

Selection of a resettlement site is left for the residents to be resettled to determine. On the north side of DSEZ, ITD developed a complex for resettlers from around DSEZ. The complex can accommodate about 480 households, and it is said to include development of the public infrastructures such as schools, hospitals, markets, multipurpose grand halls, polices and fire stations, bus terminals, religious facilities. According to the ITD, in spite of relocation to the Bawah resettlement site, majority of settlers went back to their original site when the concession agreement between ITD and the government has expired. It is said, however, that there is some gap between settler side and developer side on the resettlement site. Therefore, it is important that the government take into account the needs of the residents to be resettled, and establish a system to ensure independent-minded cooperation for the candidate sites.

5.2.5 Claim Clearance Mechanism

The mechanism for resettlement is not yet well defined by the Myanmar Government. In addition, the situation is further complicated by the different character of administrations of the areas under the control of Kayin Army or the Karen National Union (KNU) and those under the Government. Regarding the DSEZ access road, a committee consisting of four organizations as described later is considered to take charge of the information counter and duties at present. It is essential to establish a policy including provision of a new organization while considering a dispute arbitration institute and procedure for the area around the project. This is due to a fact that the organization (publicly initiated) in charge of negotiation related to compensation for resettlement is different from the actual party to burden

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5.2.6 Implementation System

Concerning land acquisition and resettlement in the DSEZ access road development, a committee of mainly government agencies is established, under whose leadership various planning and surveys are performed (determination of various compensation amounts, site procurement, etc.). The membership of the committee consists of the four organizations shown below:  DSEZ Supporting Working Body  Local Government（Tanintharyi Division）  Administration Office of Villages  Concessioner (Developer) In ITD, a representative of the concessionaire, there is a division dedicated for compensation for resettlement and the staffs are stationed at the Dawei Office of ITD. The committee meets irregularly and as required. It is said that the project will come to a standstill and the committee will not meet for a certain period of time.

5.2.7 Cost and Finance Resources

The total sum of compensation as calculated by ITD for DSEZ access road for both initial-phase and full-phase is estimated to be 5.4 billion MMK for the target area of 2,700 acres. On the basis of this estimate, the average compensation unit cost is 5000MMK/m2. As for the source of funding, the concession agreement stipulates that the fund is to be borne by ITD in the initial phase. The party to bear the fund and the resource of fund in the full phase is not clear.

5.3 Impact on the Republic of Myanmar

As described so far, the Southern Economic Corridor is required to function as an international corridor indivisibly united with DSEZ. It is difficult to separate and estimate only the benefits brought about by corridor development. In addition, corridor development is expected to affect not only areas along the road, but also ASEAN countries including Thailand. This section classifies and summarizes the benefits that Myanmar gets from the integrated development of the corridor and DSEZ as follows.

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5.3.1 Promotion of Industrial Clusters

In particular, if the heavy chemical industry sector, which is currently limited in Myanmar, develops in DSEZ for supply of products to various parts of Myanmar, the industry will become the basis of economic development of Myanmar in the future. In addition, it is expected that enterprises to support those located in the DSEZ will develop in the surrounding area, which in turn may allow DSEZ to become the center of industrial development of the southern district.

5.3.2 Improvement of Employment Market

The industries around Bangkok are facing issues such as increase in the labor costs and a critical labor shortage. DSEZ is located at a relatively short distance of about 300 km from Bangkok, and since Myanmar is the most populous ASEAN country (after Vietnam and Thailand), it has the potential of filling the labor shortage gap. It is expected that the number of employees in DSEZ is increased according to DSEZ development in future. In addition, enterprises supporting those located in the DSEZ will create a new employment separately. Namely, the effects are considered to propagate into the neighboring areas. There is a possibility of, however, failing in securing sufficient employees in and around DSEZ. Such shortage is expected to be made up by the workers currently in Yangon and other countries and the Karen refugees returning from the camp around the border with Thailand, which is currently estimated to be 500,000. Creation of a new employment is expected to raise the wage level and living standard.

5.3.3 Improvement of Regional Economic Gap

Tanintharyi Region through which the Southern Economic Corridor runs has a poverty rate of 32.6% as of 2010, which is the fourth highest in the country. Improvement of the poverty is urgently demanded. DSEZ and the Corridor, functioning in an integrated manner for production, physical flow, etc., are expected to contribute to development of the regional economy. In the future, it is expected that total value added produced in DSEZ will reach about 10% of GDO of Myanmar, the added value into the region is expected to improve the poverty ratio and can eliminate the regional gap.

5.3.4 Increase of Tax Income

For foreign enterprises advancing into DSEZ, various tax allowances are specified by the Foreign Investment Law. However, tax revenue increase is surely expected in the medium to long terms from the corporate tax, personal income tax, and import duties. This will support the national finance suffering regular revenue shortages.

5.3.5 Foreign Currency through Export Promotion

Export of products with high added-value will increase, enabling Myanmar to acquire foreign currencies.

5.3.6 Potential Increase of Dawei Location

Dawei City is a capital city of Tanintharyi Region, and development of a deep-sea port

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5.4 Benefiting to the Communities along the Access Road

It is desirable to take measures to offset the negative impact on the communities along the access road.

5.4.1 Improvement of Local Community Roads

The main function of DSEZ access road is to support logistics, and transportation services connecting to industrial zone. The traffic volume of heavy trucks such as container trucks is expected to increase after the development of deep-sea port in Dawei. However, this may cause negative impact on living condition, safety and/or environment, along the access road. Therefore, it is proposed to improve local community roads, temporary road or MOC road between Dawei and Myitta.

5.4.2 Job Creation

Job opportunity will increase during the construction stage of DSEZ access road, and new style of employment is expected after the completion of the road. These new job opportunities could improve the base of the economy of community. ITD has employed, actually, some local people as official staff in their base camp along the road, and the figure will increase with the full-scale construction commencement. In addition, many business chances that the community may benefit from are expected since large volume of traffic will use the access road. The new chances, for instance, include employment as toll collection staff at toll booth, employment at vista point along the road, selling local products to the road users, etc.

5.4.3 Enhancement of Public Transportation Services

Even though DSEZ access road mainly focuses on users of industrial area, it has also big potential for the community living along the road and may improve transportation service in wide area. It is expected to maintain and enhance the mobility of the communities by connecting them (through public transport) to other communities inside the country and across the border (Thailand).

5.4.4 Improvement of Opportunity for Other Social Services

The road is expected to improve social services such as educations, medical, market, etc., by reducing the travel time. Every social infrastructure could cover more population than before, which means every social service could be developed efficiently.

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6. Railway Plan

6.1 Route Planning

This chapter covers the plan to construct a railway connecting Dawei with the border of Thailand.

DSEZ

Figure 6.1.1 Railway Connection of Southern Economic Corridor (Dawei – Bangkok) 6.1.1 Planning Conditions

(1) Geometric Conditions

Since this route is assumed to be connected with the existing railway on the Thai side, the alignment conditions to be set must take into account the Thailand’s railway specifications. The Myanmar railway is expected to achieve a higher speed and improved transport capacity by electrification and with the standard gauge (1,435 mm gauge). The Thai railway, on the other hand, is not electrified and meter gauge (1,000 mm gauge). Therefore, the railway has to be developed as non-electrified meter gauge line to avoid cargo transshipment and allow sharing of vehicles and facilities. The alignment conditions to be set in this route plan are summarized below.

Table 6.1.1 Geometric Conditions for Railway Alignment Items Specifications Power System Diesel Gauge 1,000 mm Max Design Speed: below 110km/h 400 m Radius of Curve Max Design Speed : below 90km/h 250 m Max Design Speed: below 70km/h 160 m Transition Curve Through Track Cubic Parabolic Curve Traction Section 25/1,000 Maximum Grade Stop Section 5/1,000 Radius of Curve ＞ 600 m R=2,000 m Vertical Curve Radius of Curve ≦ 600 m R=3,000 m Source: Study Team

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(2) Building Code

For the track clearance, such as the width of bridge structure for elevated track, tunnel section, etc., which is the basis of the construction cost, the existing line standard of Japan is to be used while taking into account the future higher standard, such as electrification, and import of vehicles from abroad.

Unit: mm

Source: Guideline for Technical Standard of Railway Figure 6.1.2 Track Clearance Sample for Rail Structure

(3) Width at Base Level

The formation width is to be capable of holding the track functions adequately, and the structure should be strong enough to carry the train weight and the maintenance work. The formation width of ordinary railway is shown in Figure 6.2.2.

Single Track

Double Track Source: JICA Study Team Figure 6.1.3 Width at Base Level

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6.1.2 Considerations for Railway Alignment

A railway route plan must basically ensure the connection of stations via the shortest distance. It is essential to take into account topographical factors including rivers and mountains, locations of natural reserves and important structures (historic sites, military facilities), existence of any development plans, etc. For this route, an alignment study is performed specifically by taking into account the following conditions:

 The beginning point of rails hall be near Dawei SEZ coast to facilitate connection with marine traffic.  Railway alignment must not be far from the construction road.  The construction should consist of mainly cutting to ensure satisfactory constructability and low costs.  If tunnels have to be employed, their length must be shortened as practically as possible.

6.1.3 Route Planning

The railway route plan (plan and longitudinal alignment view) was prepared on the basis of a topographical map (scale: 1/50,000). For the section of 45km and 90km - 130km, a 25‰ steep slope was applied to minimize the tunnel length. Also, sharp curves must be employed in many locations of the mountainous areas to cope with the complex topography. This means the necessity of speed regulation. The route plan is shown in the next figure.

Figure 6.1.4 Route Alignment Map of Railway

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Figure 6.1.5 Route Planning (1/2)

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Figure 6.1.6 Rout Planning (2/2)

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6.2 Structure Planning and Rough Cost Estimate

6.2.1 Railway Structure

The civil engineering work accounts for more than half of the railway construction costs, so the optimization of structure selection is essential. Considering the local beneficial effects, utilization of locally procurable manpower and materials and equipment will be the principal approach, and field-proven structural type and construction method will be employed. For the locally uncommon structures, which require the introduction of Japanese or other foreign technologies (materials and equipment, instructing engineer), such as the tunnels with less construction records, the local manpower and materials and equipment will be utilized as much as possible. The structures to be arranged along the planned route are outlined below.

(1) Track Bed

For the relatively flat terrain, only the roadbed to carry the track will be developed after felling and leveling. The roadbed types include concrete roadbed, asphalt roadbed and crushed stone roadbed, of which the asphalt roadbed will be employed for the highly critical sections.

Figure 6.2.1 Typical Layer Drawing (2) Earthworks

The sections with elevations higher than that of the planned route will be cut to develop the flat surface. Since the local ground is relatively hard, the standard slope gradient of the cut will be 1:10. When the slope height is 10 m or more, a 1.5 m wide berm will be provided at around 7.0 m interval.

Berm

Single Track Source: JICA Study Team Figure 6.2.2 Typical Drawing for Cut Section

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(3) Viaduct

A bridge structure for elevated track, which comprises reinforced-concrete girders and reinforced-concrete piers, will be employed when the elevation difference is so large that the civil engineering work, if chosen, may have an excessively wide scope of work.

Single Track Double Track Source: JICA Study Team Figure 6.2.3 Typical Drawing for Viaduct (4) Mountain Tunnel

The tunnels will be excavated by primarily using rock bolts and shotcrete. This method of excavation ensures resistance to any geological change and obstructions because excavation is done while always checking the ground condition.

This method is applicable in the mountainous area when the cutting requires uneconomical large-scale excavation and the ground is stable.

Single track Double track Source: Design and Supervision Manual for NATM, Railway Technical Institute Figure 6.2.4 Typical Drawing for Mountain Tunnel 6-7

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(5) Tracks

The ballast track, which has satisfactory constructability and low construction costs, is employed for the track. Replacement of timber ties by prestressed-concrete ties is under way on the Thai side, and development of heavy rails (50 N rails) is also being undertaken.

Figure 6.2.5 Track Condition on Thailand’s Side (6) Stations

For the time being, a dedicated freight station will be developed at the terminal in Dawei. The station will be equipped with facilities for parking rolling stocks and for inspection and maintenance, in addition to the platform for loading and unloading of containerized cargoes. In case of large-scaled vehicle maintenance, the workshop next to Thon-Buri station in Bangkok will be used.

Container 1

Container 2 E&S System Line Container 3

Storage Track Passenger 1

Inspection Track Station Building Passenger 2

Figure 6.2.6 Track Layout of Cargo Station

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6.2.2 Structure Planning

(1) Layout by Structure Type

On the basis of the railway alignment plan and terrain conditions (undulation, rivers, intersecting roads, and ground obstructions), the structural layout plan was developed as shown in Figure 6.2.7.

Source: JICA Study Team Figure 6.2.7 Layout Plan by Structure Type

(2) Structure Type

On the basis of above route plan map, the structures to be arranged along the planned route were selected. The calculated quantity of structures is shown in Table 6.2.1.

Table 6.2.1 Structure Type Volume Structure Type Length Track Bed 14.7 km Earthworks 138.0 km Viaduct 11.6 km Tunnel 13.8 km All Structure Type 178.1 km Source: JICA Study Team

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6.2.3 Rough Cost Estimate

(1) Unit Price by Structure Type

Referring to the unit cost in Myanmar and the record of railway construction in Japan, the construction unit price of each structure type was set as shown in Table 6.2.2.

Table 6.2.2 Unit Price by Structure Type Cost Items Single Track Case Double Track Case Track Bed 840 USD/m 1,400 USD/m Earthworks 2,520 USD/m 3,300 USD/m Viaduct 5,900 USD/m 9,900 USD/m Tunnel 9,200 USD/m 21,800 USD/m Tracks 800 USD/m 1,600 USD/m Station 4,300,000 USD/Station 4,300,000 USD/Station Source: JICA Study Team

(2) Rough Cost Estimate

From the quantity of each work item and the construction unit price, the approximate project costs for the railway was calculated as shown in Table 6.2.3.

Table 6.2.3 Cost Breakdown for Structure Type

Single Track Case Double Track Case Structure Type Length （million USD）（million USD） Track bed 14.7km 12.35 20.58 Earthworks 138.0km 347.76 455.40 Viaduct 11.6km 68.44 114.84 Tunnel 13.8km 126.96 300.84 Track 178.1km 142.48 284.96 Station 2 Station 8.60 8.60 All Structure Type 178.1km 706.59 1,185.22 Source: JICA Study Team

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6.3 Railway Operation Plan

6.3.1 Operation Plan

The maximum number of trains operable is about 80/day for the single track, and about 240/day for the double track.

Train Operation Capacity ・Single Track N = 1440 / (t+s) * f = 80 Here, N: Train Capacity (Both direction total) t: Average Travel Time between Station (8 min.) s: Waiting Time for Crossing (2.5 min.) f: Track Occupancy (Generally 0.6) ・Double Track N = 1440 / h * f * 2 = 240 Here, N: Train Capacity (Both direction total) h: Train interval (7 min head) f: Track Occupancy (Generally 0.6）

Without the interchange facilities, operation of three trains/day in one direction would be the limit. If an interchange facility is provided in one location at the midpoint, operation of a maximum of five trains/day in one direction would be possible. Considering the geological constraints, doubling the track is recommended if the train operation is to be increased further. The assumed diagram is shown below.

Figure 6.3.1 Operation Diagram (One Crossing Point)

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6.3.2 Cargo Transportation Volume

For transporting cargo on this route, containers must be used to facilitate the transfer of cargo from/to trucks and freighters. A study on the transport capacity of this route is conducted in line with the above operation plan.

(1) Container Type and Loading

The containers include the international standard ISO containers and the unique Japanese standard railway cargo containers a. The image of loading containers on freight cars is as shown below.

Figure 6.3.2 Image of Container Loading

(2) Transportation Capacity

According to the railway standard, one freight train can pull 20 freight cars. As a result, the annual transportation capacity of double track line may reach 7,350 ton, which is equivalent to t transportation capacity of 2,400 heavy trailers.

Table 6.3.1 Loading Capacity of Container Type (Double Track: 120pcs/day/One-way) Container Type Transportation Capacity Equivalent Trailer ISO 40 ft 2,400 pcs/day Heavy Trailer: 2,400 veh./day 63,600 ton/day 23,214,000 ton/year

20 ft 7,200 pca/day Heavy Trailer: 3,600 veh./day 201,600ton/day 73,584,000 ton/year

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7. Financial Analysis

This section is to confirm, the financial feasibility of the road and railway development plans described up to now. Specifically, the financial internal rate of return (FIRR) will be calculated on the basis of cash flow in real terms and the financial feasibility of the project will be assessed.

7.1 Financial Analysis for the Access Road

7.1.1 Fare Level

Different tolls will be adopted for passenger cars and or freight vehicles, as Table 1 of the Option 1 shows, and the tolls will be revised each time the road is upgraded. The toll systems of Options 2 and 3will be the same as that of Option 1(see Tables 7.1.2).

Table 7.1.1 Fare Level of Option 1

Option 1 Initial (2018) Bypass Route (2025) 4 lane (2030) Tariff each section S: 5, H: 20 S: 15, H: 60 S: 20, H: 30 Total No Use of Bypass S: 5 , H: 20 S: 5, H: - S: 20, H: - Total: Use Bypass S: - , H: - S: 20(5+15), H: 80(20+60) S: 35(20+15) , H: 90 (30+60)

- All traffic pass and pay for Non-Bypass Routes (initial phase and 4-lane phase ) - Heavy Traffic to be obliged to use Bypass, Small Cars can select either (assuming 20% use it). - Only Traffic using the Bypass pays additional tariff for the section. ← Considering fairness between users of Bypass and Initial Phase Road and Recovery of higher Cost of Bypass

Table 7.1.2 Fare Level of Options 2 and 3

Option 2 & 3 2018 2025 2030 Tariff S: 5, H: 20 S:20, H:80 S:35, H:90

7.1.2 Other Preconditions

 Loan period and conditions: Interest rate of 1.0％ and redemption period of 30 years (including a grace period of ten years)  Equity ratio: 30% (10% for the initial-phase road)

7.1.3 Results of Financial Analysis

Table 7.1.3 shows the analysis results. The results of Option 1 prove most favorable, followed by Option 2 and Option 3, respectively. Generally, the necessary equity IRR is said to be 20% or more when a private enterprise is to implement a project. With the optimum toll system and introduction of advantageous soft

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Table 7.1.3 Results of Financial Analysis for the Access Road FIRR Equity IRR Remarks (Possibility of less Government Burden)

Measurements for Option 2 to be Tariff Up Tariff needs “×1.6” of the above level same EIRR level (19%) of Option1 Subsidy 40% of Total Construction Cost

7.1.4 Sensitivity Analysis

The effects of a change in the input parameters on the financial analysis results are analyzed. The changes in three indices are examined: ① interest rate, ② project costs, and ③ revenue. When the interest rate was increased from the base case of 1% up to 5%, the equity IRR decreased from 19.33% to 11.89% in the case of Option 1 and 11.45% to 7.99% in the case of Option 2. This means that a loan with a low interest rate is essential to secure the project profitability (see Figure 7.11). 25 Option 1 20 Option 2

10 Equity IRR (%) IRR Equity 5

0 1% 2% 3% 4% 5% Base Case Interest Rate

Figure 7.1.1 Sensitivity Analysis (interest rate)

Figure 7.1.2 shows the change of equity IRR when the project cost and the revenue are changed by 5% respectively. With the equity IRR of 15% used as a measure, the revenue decrease by 15% and the project cost increase by 20% will be a point below the break-even point. Change of both revenue and project cost by 10% also results in a point below the break-even point. Namely, risk management of these indices is essential. 7-2

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16 Revenure Base Case IRR

14 Revenue ‐5%

Equity Revenue ‐10% 12 Revenue ‐15% 10 Revenue ‐20%

8 0% 5% 10% 15% 20% Change in Cost Figure7.1.2 Sensitivity Analysis (Project Cost and Revenue)

7.2 Financial Analysis including the Railway Plan Considering the tremendous amount of initial investment in the railway project, introduction of the railway in the Southern Economic Corridor should be considered when the Dawei SEZ has developed enough to generate sufficient traffic demand for the railway. Namely, the introduction will be around 2030, at the earliest. This section includes a rough study on the cash flow analysis for the introduction of the railway between Dawei and Kanchanaburi. According to the demand forecast, the traffic volume of the access road will exceed the capacity of four-lane road in 2041, which indicates the necessity of introducing a railway or developing an additional new road. The financial analysis covers the following three development cases: Case 1: Development of a four-lane road in 2030 and a railway in 2040 Case 2: Development of a railway in 2030 and a four-lane road in 2040 Case 3: Development of a railway and a four-lane road simultaneously in 2030

7.2.1 Preconditions (1) Demand Forecast Using the results of demand forecast summarized in Chapter 4, the revenue is calculated by assuming 20% of the road demand will shift to the railway. Tables 7.2.1 and 7.2.2 show the demand forecast and the required train operation frequency for cargoes and passengers. The number of rolling stocks and the transport capacity per train are as follows:  Freights: 3TEU/rolling stock × 20 rolling stocks＝60TEU/train  Passengers: 60 persons/rolling stock × 10 rolling stocks × 0.6 (average occupancy ratio) ＝360 persons/train

Table 7.2.1 Railway Demand Forecast (Freights) 2030 2040 2050 Remarks No. of trucks (vehicles/day) 3,400 6,800 9,200 No. of containers (TEU) 6,800 13,600 18,400 2 TEU/rolling stock Shift to the railway 1,360 2,720 3,680 20% shift assumed Required operation frequency 23 46 62 60 TEU/train (times/day) Source: JICA Study team

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Table 7.2.2 Railway Demand Forecast (Passengers) 2030 2040 2050 Remarks No. of passenger cars (units/day) 7,800 8,400 9,200 No. of passengers (persons/day) 23,400 25,200 27,600 3 persons/rolling stock Shift to the railway 4,680 5,040 5,520 20% shift assumed Required operation frequency 13 14 16 360 persons/train (times/day) Source: JICA Study team

As is evident from these tables, the minimum required operation frequency in the case of starting the railway service in 2030 will be 38 times (19 back-and-forth trips) in total, including 24 times (12 back-and-forth trips) for freights and 14 times (7 back-and-forth trips) for passengers. Namely, doubling the track is needed for opening the railway for service.

(2) Fare Setting

1) Passenger fare

The passenger fare was calculated at US$ 6.53 or 233.3 baht per person. The fare was estimated by calculating the fare per kilometer of the second-class service between the Bangkok and Kanchanaburi section of the Thailand’s National Railway South Line, and multiplying the route length of this project by this rate, as shown below. * Calculation of the passenger fare for the Bangkok-Kanchanaburi section (178.1km)

Fare 64 Baht (2nd class) Unit price per kilometer Fare from Dawei to Thailand Limited express fare 60 Baht National Railway connection point With air conditioner 50 Baht 174÷133km 1.31×178.1 km ＝＝ Total 174 Baht 1.31 Baht/km 233.3 Baht ＝US$ 6.53

2) Freight fare

The freight fare was calculated to be US$ 77.6 /TEU; the Japanese fare system for container transport was adjusted for the fare gap between Japan and Thailand, as shown below.

*Calculation of the containerized cargo fare for the Bangkok-Kanchanaburi section (178.1km)

20 ft container transport fare Fare for the Dawei-border Adjustment for the fare gap in Japan with Thailand (178.1km) between Thailand and Japan (475km) 799×178.1÷475 299.58×0.259 799 US$/TEU ＝US$ 299.58/TEU ＝US$ 77.6/TEU

The Japanese passenger fare equivalent to that of between Bangkok and Kanchanaburi (L=178.1 km) is 25.17 USD (3020 JPY). The fare ratio of Thailand to Japan, therefore, is 0.259 (6.53 / 25.17).

(3) Costs

1) Project cost

The project cost consists of the items shown in Table 7.2.3. The cost includes the rolling stock cost (5%), consultant fee (10%), contingency (20%), and compensation costs, in addition to the work cost calculated in Table 5.3.3. 7-4

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2) Operation costs, maintenance costs

Eighty-five percent (85%) of the fare revenue will be allocated for covering the operation and maintenance costs. After operation for service, 10% of the initial work costs will be allocated for the equipment renewal costs every 15 years.

Table 7.2.3 Estimation of the Railway Project Items Cost Remarks (1) Construction Cost 1,185.22 In case of double-track line (2) Rolling Stock 59.26 (1) * 5% (3) Consulting Fee 118.52 (1) * 10% (4) Land Compensation 2.00 Only In Myanmar (5) Contingency 260.75 ((1) + (3)) * 20% (6) Total 1,625.75

7.2.2 Financial Analysis Results of the Railway Plan

The results of financial analysis are summarized in Table 7.2.4. In all cases, FIRR go negative, which indicates that the project is not feasible financially. Besides, even with the 2.5-fold demand increase or the 50% government support assumed, it is hard for this project to become a successful private project (see Table 7.2.5). On the other hand, the railway has lots of advantages over the road, including the punctuality, small environmental impact, large transport capacity, and smaller right-of-way. The rationality of the introduction of the railway has to be judged after overall considerations of important issues including financial subjects and their advantages, as well as the smooth traffic in the Southern Economic Corridor; it is also necessary to determine whether the project should be a public project or a PPP project with less burden on the private enterprises.

Table 7.2.4 Financial Analysis Results

Table 7.2.5 Sensitivity Analysis (Case 2)

* In case of “scheme of separating infrastructure and operation”, the Government will become the railway operator owning the facilities while some SPV will be the railway operator operating the line. The SPV will prepare the rolling stock, about 15% in the total cost.

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7.2.3 Financial Analysis Results for the Access Road and Railway

Table 7.2.6 shows the financial analysis results taking both the road and the railway into account. Calculation was done for three cases: a case in which widening to four lanes comes first, a case in which development of a railway comes first, and a case in which both (road and railway) are developed simultaneously. The results showed not much difference among these cases. Namely, the timing of railway introduction in the Southern Economic Corridor should be determined based on the DSEZ development, trends of demand, necessity of regional development after railway development, etc. Since the railway ensures transport independently from the road congestion, the concept of multimodal transportation, which is made up from railway transport within Thailand only and truck transport from Dawei to Kanchanaburi, should be studied as an alternative. Table 7.2.6 Financial Analysis Results for the Access Road and Railway

7.2.4 Possibility of railway development in Southern Economic Corridor

Summary of analysis in this chapter is as following;

 Even if four- lane road is developed, road capacity of the Southern Economic Corridor is insufficient against demand in 2040.  Assuming 20 % level of traffic demand of Southern Economic Corridor is shared by railway, double truck of railway is required at opening stage.  It is difficult that the railway development project becomes feasible in terms of refund by only revenue box even if all portion of investment cost is covered by soft loan. Some governmental support will be required for sustainable operation.  Comparing the operational condition between both cases, i.e. railway development before four-lane road construction and after, latter case is more feasible. Because the latter case has much advantage on transportation demand.

One of the most important issues on Southern Economic Corridor project connecting Myanmar and Thailand is service level of transportation for passenger and logistics. It is probable situation that both of countries, Myanmar and Thailand, will face difficulties on following issues since there are many lesson-learns from other developed/developing countries if these transportation are still covered by only land transportation mode.

 Inconvenience of punctuality and smooth driving due to heavy traffic congestion caused by rapid increase of cars  Increase of CO2 emission caused by cars  Large scaled physical loss due to road accidents

Transportation mode instead of trucks will be required in future to avoid and/or improve such problems. 7-6

Data Collection Survey for Southern Economic Corridor in Myanmar

One of the alternative modes, railway system, is much suitable for long distance transportation, around 465 km from between DSEZ and Bangkok, because transportation cost of railway becomes more to distance. Besides, railway has several advantages as followings.

 Transport capacity is larger than truck per vehicle unit. In case of double truck, capacity of railway per day is equivalent to 7,200 trailers or 48,000 pick-up cars  Punctual time operation since railway runs exclusive rail trucks  Low risks of physical loss by transport accident because of high safety comparing road traffic  Efficient energy consumption for transport and low Co2 emission  Few space of railway ROW  Low initial investment cost against road construction. Railway initial cost is around 9 million USD per km for double trucks, and it is 80 % cost level for four-lane road.

7.3 Financial Analysis for Alternative Case covered by Another SPC

The current concession agreement applies to the two-lane initial-phase road. When the road is upgraded to the four-lane road, the same SPC is assumed to continue the agreement to upgrade the road. However, for the second stage of Option 1, that is BP development, a new concession agreement with a new SPC may be arranged.

The financial analysis results of the new concession with a new SPC are as shown in Table 7.2.7. Both the existing and new SPCs have equity IRR exceeding 18%, which means that the project is feasible as a private one. Accordingly, this is a project scheme assumed when a new investor is interested in the BP development.

Table 7.3.1 Financial Analysis for the Case of new Concession Agreement

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Data Collection Survey for Southern Economic Corridor in Myanmar

7.4 Stage-wise Construction Plan

This section studies a stepwise construction plan shown below for Option 1.

Plan 1st phase 2nd phase 3rd phase 4th phase Remarks 1 Initial phase Bypass Four-lane road Base case (2018) development for the entire (2025) route (2030) 2 Initial phase Bypass Four-lane road Four-lane bypass (2018) development except the (2035) (2025) bypass (2030) 3 Initial phase Bypass Four-lane road Four-lane road MOC road upgrading in the 3rd (2018) development from Myitta to from Dawei to stage to avoid traffic congestion (2025) the border Myitta (2035) section (2030)

The results of study based on the above conditions are summarized in Table 7.2.8. The results of each case proved slight improvement in the revenue from the base case. Namely, if the revenue is the same as the base case, the balance will be improved to the same extent as the delay of fund procurement of the project costs in the stepwise construction. However, it is inevitable that the road service level becomes lower than the base case, and the fund-raising procedure should be taken by one more additional time. These factors must be taken into account, as much as possible, from the overall viewpoint if the profitability of base case must be improved.

Table 7.4.1 Result of the Stage-wise Construction Plan (Equity IRR) Stepwise construction plan 1 2 3

FIRR 20.99% 23.53% 21.41%

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Data Collection Survey for Southern Economic Corridor in Myanmar

8. Recommendations and Further Studies

8.1 Development Scenarios for the Southern Economic Corridor

The current development scenario of the Southern Economic Corridor is shown in Figure 8.1.1. The Southern Economic Corridor should be developed in four stages as follows while taking into account the demand trend and the economic state:

1st stage ：At this stage decision should be made on whether to adopt Option 1 or Option 2. The decision on the options must be done as early as possible because this determines whether the development of the initial-phase road by ITD is to be continued as stipulated in the existing concession agreement. Option 1 allows ITD to implement the project according to the concession agreement, which requires the development of the access road within 30 months or by the end of 2018. On the other hand, Option 2, which plans to enable traffic of heavy vehicles from the beginning, requires review of the agreement. Therefore, more time may be required to complete the project according to Option 2. 2nd stage：If Option 1 is selected, the next stage will be development of bypass road where heavy truck can travel smoothly. The traffic volume of 8,000 vehicles/day may be considered as a rough standard of the maximum traffic the initial-phase road can handle when the number of heavy trucks is small. Heavy truck traffic is expected to increase with the development of the deep-sea port; therefore, the road must be developed in line with development of the deep-sea port. Regarding maintenance of the bypass, it is necessary to determine if the project is to be implemented continuously by the existing joint venture led by ITD or a new company. Since a preparatory period of around six years is necessary for practical development, it is essential to start the work in 2019 if development is to start in 2025. 3rd stage： According the demand forecast, by 2030 the traffic volume will increase to a level that the two-lane road cannot handle smoothly any more (about 11,000 vehicles/day). At this stage, it is necessary to determine whether to upgrade the road to a four-lane road or introduce a railway. 4th stage：The timing of railway development when the road development is performed in advance, and the timing of widening of four-lane road when the railway development is performed in advance. If the four-lane road is developed in advance, railway development will have to be considered in 2041, when the traffic volume is forecast the capacity of four-lane road (15,500 vehicles/day, heavy traffic ratio 50%). On the other hand, if the railway development is performed in advance, road widening will have to be considered in 2039, when the traffic volume is expected to exceed that of the two-lane road and railway (240 times/day assumed as the maximum train operation frequency of double track in the case of railway).

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Data Collection Survey for Southern Economic Corridor in Myanmar

Decision on Option 1 or 2 ・This needs to be determined very soon.

■Timing can be determined in accordance with further analysis of Initial Phase Road (2018 completed) and actual road demand for Bypass Road as well as progress of SEZ ・Initial Phase Road can be used until 2025 (Deep Sea Port or Traffic Volume:8,000, Heavy Traffic Ratio: 20%) ・6 years necessary from F/S to starting operation. Decision on a) Timing of Bypass Route and b) New SPC to be established or not ■New SPC or not After start of Initial Phase Road, there would be more potential investors for the road. New Technology can be introduced as well. In Bypass Road this viewpoint, new SPC for bypass sections is an alternative..

・2 lane road can be enough until 2030(Traffic Volume:11,200) Decision on a) Road Widening or Railway faster ・5‐6 years necessary from F/S to starting operation. and b) Timing of Next Measurements ・Timing can be determined in accordance with actual demand of the road

Railway Development Road Widening to 4 lane Timing of Railway Development/Road Widening Still there is plenty of time up to final decision. This Decision on Road issue can be open until additional measurements Decision on Railway required. Widening Development Demand will exceed 4 lane road capacity (15,500 veh./day) in year 2041 and 2 lane road + railway in year 2039. In the long run, both road widening to 4 Road Widening to 4 lane Railway Development lane and railway are required.

Figure 8.1.1 Development Scenarios for the Southern Economic Corridor

8.2 Action Plan

The Southern Economic Corridor connecting Dawei and Hti Khee on the border with Thailand is a wide-area strategic road connecting Myanmar not only with Thailand, but also with Cambodia and Vietnam, and plays an important role for development of the Mekong Delta. It is essential therefore to develop the missing link of the corridor in Myanmar, so that the corridor can function fully and contribute to early opening of Dawei SEZ. Figure 8.2.1 shows an action plan based on Option 1. Each development stage requires F/S, EIA, and E/S, taking around four years. When considering utilization of the soft loan, SPC for maintenance and bidding procedure for selection of contractor, etc. (which may take around five to six years) may be necessary before commencement of the project.

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Data Collection Survey for Southern Economic Corridor in Myanmar

Feasibility study Engineering Service Construction

• Pre F/S for SEC 2016

2017 2-lane Initial Phase Road (Class IV) F/S and EIA for SEC 2018 (Bypass Road) starts

2019

• E/S for 2-lane bypass road 2020

F/S and EIA for Railway or 4 2-lane bypass road (Class 2021-2024 lane road I) • E/S for Railway or 4 lane Railway or 4 lane road 2025-2029 road

F/S and EIA for 4-lane road 2030-2034 or Railway

• E/S for 4-lane road or 4-lane road or Railway 2035-2039 Railway (2039～)

Figure 8.2.1 Action Plan for Development of the Southern Economic Corridor

8.3 Recommendations and Further Studies

(1) Development Scenario

 Several options have been studied for the development procedure of the Southern Economic Corridor. The stepwise development option (Option 1) based on the initial-phase road implemented by ITD is considered the most practical technologically and financially. The timing of each development stage can be established as follows depending on the assumed traffic volume and heavy traffic ratio.

Development Trigger ①Bypass Deep Sea Port Staring Operations or Traffic Volume:8,000, Heavy Traffic Ratio: 20% ②4 lane Road/Railway Traffic Volume: 11,200 veh./day ③Railway (when 4 lane taken above②) Traffic Volume: 15,500 veh./day (road) 4 lane road (when railway taken above②) Traffic Volume :11,200 veh./day (road)

 The development of the bypass road to follow the initial-phase road is scheduled to be in 2025. Considering various surveys and procedures necessary, the study/analysis (F/S, EIA) must start around 2017. The bypass development should not be limit to the existing concessionaire, and it is essential to study a system ensuring more effective and efficient project promotion.  The results of analysis using existing reference data do not disfavor a possibility of introducing a railway in the Southern Economic Corridor. The study on the introduction timing and pattern must be done while ensuring harmonization with the Thai partner.

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(2) Project Implementation Scheme

 The initial-phase road project is planned based on the concession agreement. Thai government, however, is still requesting Myanmar government to borrow soft loan for the access road development, and it is not decided yet whether the project scheme would be public works by Myanmar government applying Thai soft loan or BOT using private finance as of March 2016. In the 2nd stage and afterwards, the project cost mounts and a considerable risk is expected if the project is to be implemented as a private project. Accordingly, the PPP scheme is considered appropriate for the development of the 2nd stage and after, in which development is promoted by means of the pubic private partnership.  The current study results showed that the project will be to a certain extent profitable as a private project under a PPP scheme. However, elaboration of the PPP scheme is necessary to facilitate the participation of private enterprises in the actual project. In particular, it is essential to identify clearly the items to be implemented by the government, such as public support to the demand risk, adequate fare setting, etc.

(3) Environmental and Social Considerations

 Of the target road, the Myitta–Thai/Myanmar border section runs through a part of area under the influence of the ethnic Karens, and establishment of the system ensuring their cooperation is indispensable for implementation of the project in this part. Sufficient explanation and satisfactory compensation for land acquisition and resettlement must be conducted simultaneously with the measures taken to ensure that the road will benefit them.  The area around the route is designated to be a natural conservation area where elephants and tigers are expected to live. Though the development of EIA-related legal system is under way in Myanmar, another donor may often undertake substantial assistance because of lack of experience on the Myanmar side counterpart. As this project is an international one, it is essential to undertake EIA according to the international standard.

(4) Traffic Control Plan

 In addition to structural measures such as road and railway development, the traffic control to realize the road safety and smooth traffic must be studied. Specifically, these control measures should include traffic safety components (provision of the pedestrian ways, guardrails, traffic signals, curve mirrors, etc.), traffic regulations (regulation of heavy traffic, speed limit, area traffic regulation), control of overloading, etc.

(5) Border Control Post and Clearance Systems

 Even though the access road would be developed, large traffic volume is not expected unless every process at border post is smooth. In order to realize such smooth traffic flow at border, government own protocol is required. Few vehicles are allowed to cross into both sides of the border of the two countries (Thailand and Myanmar) at present.  One stop border post (OSBP) is one of the best solutions to realize smooth traffic flow at border. Both countries also need to introduce common system for CIQ process.

(6) Benefits for Local Communities

 The Southern Economic Corridor must be not only advantageous at country level for both Thailand and Myanmar, but also greatly beneficial to the Tanintharyi State, wayside areas, and residents. For

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this purpose, it is essential to make efforts at the planning stage, to maximize the positive effects of the road development while minimizing the negative effects.  Measures beneficial to regional residents include upgrading the regional road connecting to the access road, creation of job opportunity related to maintenance of the access road (toll gates, service areas, wayside commercial facilities where employment is expected), upgrading public services, and development of other social welfare facilities (schools, hospitals, markets, etc.).

(7) Preparation of Spatial Master Plan for Area Development

 Access road development would raise land value at roadside and stimulate economic growth, besides improving spatial usage. On the other hand, there are concerns of large environmental damages due to destructive development. Therefore, it is necessary to consider the land use plan and relevant regulations to protect natural environment along the access road.

(8) Detailed Technical Studies

This study has been conducted on the basis of existing reference data. Detailed study will be needed in the future.

 This study sets the timing of two-lane bypass road development in 2025 and that of widening it to a four-lane road in 2030. But the timing is greatly dependent on the development state of Dawei SEZ. In order to study the timing in detail, a detailed demand analysis must be done in the future on the basis of M/P review study and regional fact-finding economic survey by R&B. This is for drafting of the access road development plan integrated with the development of Dawei SEZ. Such analysis must also contain a study on the multi-modal measures including not only the road, but also the railway in terms of physical flow and passengers.

 This study proposes a detour road development to ensure smooth flow of heavy trucks, and proposes several mountain tunnels due to geographical restraints. The mountain tunnels are a safe and efficient structure, but their planning and design requires inevitably several studies, such as those on geology, groundwater, and topographic survey, which in turn require time and money for their implementation. The Myanmar Government should start preparation to implement these studies as early as possible.

(9) Proposals for the Tunnel Work

The Southern Economic Corridor runs through mountainous area, making tunneling inevitable. This study results may become one of reference materials because Thailand and Myanmar have no experience of road tunneling. However, the points listed below must be taken into account for more detailed study:

 Operation time of tunneling needs to be 20 hours in total per day, i.e. 10 hours during the day and another 10 hours during the night in two shifts a day.

 For the whole work period, the tunneling work is generally the critical path. In case of construction of a long span tunnel, it is essential to consider increasing the number of cutting faces.

 For the section concerned, the tunneling work will consist of excavation of mainly medium-hard rocks. 8-5

Data Collection Survey for Southern Economic Corridor in Myanmar

Accordingly, excavation by blasting is considered to be more adequate for NATM excavation than mechanical excavation (twin-header, load header, etc.). In this event, the measures to minimize impact on the surrounding environment (measures against noises and vibrations, air pollution, water contamination, etc.) are necessary.  During excavation, drainage inside the tunnel is always required (24 hours, 365 days). Since drainage by gravity is optimum, an effective initial design would be an initial design enabling up-grade tunneling.

 The proposed unit price per tunnel km does not include the use of generator. Since the construction work of the section concerned cannot receive power from the transmission line, the cost estimate must be performed on the basis of power supply from generator.

 Waste earth treatment is not considered in the above-mentioned cost estimate. A more detailed analysis on waste management, including environmental impact is required in the next study.

 It is expected that power supply in operation stage would be covered by national grid system. However, back-up system of generator is required in case of emergency

 Routine and periodic maintenance is important for a tunnel structure. Such routine maintenance keeps a structure in a good condition and protects cars from serious accidents. (Refer to 4.5 (4) and Appendices: “Presentation of Tunnel Method”)

This feasibility study mainly focuses on route alignment based on maximal use of existing documents and satellite images. It is necessary to conduct detailed site survey to understand geographic specifications applying boring survey and elastic wave investigation.

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Appendices

1．Summary (Power Point)

2．Tunnel Technology

1．Summary (Power Point)

App 1-1

Pre F/S FOR SOUTHERN ECONOMIC CORRIDOR IN MYANMAR

Summary (Power Point)

Japan International Cooperation Agency (JICA) Yachiyo Engineering Co., LTD. (YEC) Central Consultant Inc. (CCI)

Purpose of the Survey

●To collect and analyze existing information for the road of Dawei – Thailand Boarder, a part of the Southern Economic Corridor (SEC : Bangkok – Dawei), based on existing studies (mainly ITD and R&B studies) and site survey.

●To show options of full phase access road (4 lane road) development with merits and demerits (aspects of required standard, technical matters, safety, cost, investment efficiency (possible involvement of private), environmental aspects, contribution to regional development, etc. and

●To show step towards implementation of full phase access road

in conducting surveys and showing options above (an Additional Aspect),

●To take into account possibility of Railway Development from Dawei to Thailand 3 WORKING TRACK

2015 2016 SEP. OCT. NOV. DEC. JAN. FEB. MAR.

1st 1st 2nd 2nd 3rd 3rd STAGE Survey Work in Japan survey Work in japan Survey Work in Japan

Review for Development Plan, Relevant Plan, and Progress

Demand Forecast

FLOW Impact Analysis Provision & Report of F/R Planning for DSEZ Access Road Discussion for DF/R Discussion for Explanation of IC/R Consideration for Environmental & Social Issues

REPORT IC/R DF/R F/R

MEETING 3 party (Inception) 3 party (Interim) 3 party (Final) （9/16）（11/3, 10）（1/10)

TABLE OF CONTENT

1. Technical Analysis I: Road Development - Analysis of the initial phase access road and Development towards 4-lane road 2. Technical Analysis II: Railway Development 3. Financial Analysis 4. Development scenario for Southern Economic Corridor (Suggestions and Issues to be Considered) 5 1. Technical Analysis I : Road Development

1‐1. Demand Forecast and Timing of Transport Infra. Expansion 1‐2. Analysis of Initial Phase Road 1 Design Standard for Initial Phase Road and Full Phase Road 2 Difficult Points in the Initial Phase Road 1‐3. Development Towards 4 Lane Road 1 Bypass Sections and Climbing Lanes 2Towards 4 Lane Road Development 3Construction Cost by Option 1‐4. Traffic Management Plan 1‐5. Social & Environmental Considerations 1‐6. Measurements for Benefiting to the Communities along the Road

6 1-1. Demand Forecast and Timing of Transport Infra. Expansion Heavy Truck Others 20000 4-lane Road and more including Railway

15000 4-lane Road

10000 2-lane Road 5000 2027 2041 0 2020 2025 2030 2035 2040 2045 2050 Traffic Volume (Veh./day) Volume Traffic Year Year 2020 2025 2030 2035 2040 2045 2050 Traffic 4,000 8,000 11,200 13,600 15,200 16,800 18,400 Volume (*) Heavy Truck 10% 20 % 30% 40% 50% 50% 50% Ratio (%) Necessary 4-lane Road and more including 2-lane Road 4-lane Road Infrastructure Railway

Note: figure (*) is based on the ITD study. 7 1-2. Analysis of Initial Phase Road (1) Design Standard for Initial Phase Road and Full Phase Road  Number of lanes: 4 lanes  Possible standard: - Asean Highway Standard (Class 1) - Myanmar Road Design Criteria (Main Arterial Road) Initial Phase Road: 2 lanes and Class 4 Highway Class 1 Class 1 Class 1 Main Arterial Class 4 Classification (Thailand *) (Asean **) (Asian **) (Myanmar) (Thailand *) Terrain Classification R M R M R M R M R M 80 60 80-110 70-90 60-80 50-70 80 50 55-70 40-55 Design speed (km/h) (60***) (40***) 6 5 8 Max. vertical grade (%) 6 8 675 812 (7****) (6) (10) Travelling speed in max. vertical section of trailers 20-25 15-25 20-25 15-25 25-30 20-25 25-30 15-25 15-25 <10 or HT (km/h) Min. horizontal curve (380) (230) 120 80 210 80 210 105 radius (m) Width (m) Lane 3.5 3.6 3.5 3.5 3.5 Shoulder 2.5 3.0 (2.5) 3.0 (2.5) 2.5 2.0 1.5 Median - 1.0 3.0 (2.5) 3.0 2.5 *: Thailand: Design speed and Max. vertical grade of Class 2 and 3 are the same as Class 1, but shoulder width is different **: Asean and Asian: Class 2 is for 2 lane-road ***: If necessary, design speed can be determined 20 km/h lower than the standard speed ****: Applicable for the steep mountain area

■ Vertical grade and passing speed for heavy commercial vehicles  6%: Passing speed of 100% loaded Trailers is 20 km/h  8%: Passing speed of 100% loaded Heavy Trucks (HT) id 25 km/h  10%: Passing speed of 100% loaded Trailers is 15km/h only  12% : Not applicable for 100% loaded trailers and HT Difficulties for Heavy Trucks smooth travelling through Initial Phase Road, affecting on efficient traffic flow especially when traffic becomes dense.

25 km/h 20 km/h 15 km/h

8% 6% 9.5% (10%)

1. Relation between vertical grade and passing speed in the above table is referred to Japan Road Design Manual 2. PASSING SPEED is a value for maintaining a certain service level of the objective road, considering not only allowable speed but safety aspects 3. According to Myanmar Standard, maximum vertical grade of the Main Arterial Road Class is to be 10% 9 (2) Difficult Points in the Initial Phase Road: Heavy Truck Traveling Simulation Speed lowering section for the trailers and heavy trucks (Details are shown in Reference)

Section of less than 10km/h in the trailer travel speed Section of less than 25km/h in the heavy truck travel speed (Length: more than 200m) Countermeasures

A. Climbing lane *1

B. Alleviation in vertical gradient (Improved Road Sections) A B C1 C2 D1 D2 D3

Section where construction of bypass road for alleviation in vertical gradient will be considered Section where installation of climbing lane will be considered

※1： In the sections where the trailer can’t climb, the alleviation in vertical gradient is prioritized. Therefore, the climbing lane is not necessary in the sections where the alleviation in vertical gradient is considered.

10 1-3. Development Towards 4 Lane Road (1) Improved Road Sections and Climbing Lanes To Mawlyamain Dawei SEZ Climbing Lane needed if not considered in Initial Phase Road

Myitta THAILAND

Border Dawei Dawei-Myitta Road (MOC)

National Road No.8

To Bangkok MYANMAR

B c D A Improved Road Sections needed for alleviation in vertical gradient (*) Comparison of Typical Cross Sections of Initial Phase Road, Improved Road Sections, 4 Lane Road and Climbing Lane is shown in reference) 11 ■ Comparison of Typical Cross Sections of Initial Phase Road, Improved Road Sections and 4 Lane

Improvement Road Section (2 lane)

• New alignment sections are upgraded to Class I • Class I is more gentle gradient and alignment, wider shoulder, and more substantial pavement than Class IV

12  Climbing Lane

Uphill

Climbing Lane

Heavy Truck

Small Car

Length Const. Cost Remarks (km) (million USD) 10.70.6 20.90.8 Section Between Bottleneck B and C 30.70.6 40.20.2 50.30.3Section Between Bottleneck D and E Total 2.8 2.5 13 ■Detail of Bypass Route [A]

Temporary Road Initial Phase Road (2-Lane) Full Phase Road Possible Bypass Route Tunnel Bypass Road [Alt. 1] L=1.7 km (Tunnel)

Dam Lake (Future Plan) Bypass Road [Alt. 2]

A • It is difficult to widen to 4-lane along L=2.3 km the ITD alignment due to the steep (Tunnel) escarpment. • The alignment shall be considered the dam lake plan

14 Vertical Views and Figures [A] Alternative. 1 （Recommendable)

A) Alt.1 9.4 km Length Unit Cost Estimated number km mil USD/km million USD Road 2‐lane 7.0 2.5 17 2.2% 0.5% Bridge 1 0.7 22.5 15 Tunnel 1 1.7 25.0 42 TOTAL 75

Alternative. 2

A) Alt.2 9.5 km Length Unit Cost Estimated number km mil USD/km million USD Road 2‐lane 6.4 2.5 16 1.2% 2.6% Bridge 1 0.7 22.5 16 0.7% 4.5% Tunnel 1 2.4 25.0 59 TOTAL 91 15 Detail of Bypass Route [B]

Temporary Road Bypass Road Initial Phase Road (2-Lane) [Alt. 2] Full Phase Road Possible Bypass Route Tunnel L=1.3 km (Tunnel)

Bypass Road [Alt. 1]

• The route planned by ITD is located at the mountainside. And many bridges are necessary. • On the other hand, recommended route is almost flat even though about 1.3km tunnel is required on the way.

16 Vertical Views and Figures [B] B) Alt.1 16.8 km Length Unit Cost Estimated Alternative. 1 (ITD Plan) number km mil USD/km million USD Road 2‐lane 15.2 3.1 47 Bridge 5 1.6 32.0 52 Tunnel 0 0.0 0.0 0 TOTAL 99 1.2% 5.0% 5.0% 0.7% 2.3%

B) Alt.2 17.5 km Alternative. 2 (Recommendable) Length Unit Cost Estimated number km mil USD/km million USD Road 2‐lane 15.9 2.4 38 Bridge 1 0.4 37.8 13 Tunnel 1 1.3 25.0 33 TOTAL 83

0.5% 3.3% 2.7% 1.7% 17 Detail of Bypass Route [C]

L=0.90 km Temporary Road (Tunnel) Initial Phase Road (2-Lane) Full Phase Road Possible Bypass Route Tunnel Bypass Route [Alt. 1] • The route planned by ITD is located at the L=0.90 km mountainside. And many (Tunnel) bridges are necessary. • On the other hand, on the recommended route, about C1 0.9km and 1.0km tunnels are required on the way.

Bypass Route C2 [Alt. 2]

L=1.00 km (Tunnel)

Vertical Views and Figures[C]

C, D) Alt.1 Alternative. 1 (ITD Plan) 18.3 km Length Unit Cost Estimated number km mil USD/km million USD Road 2‐lane 13.9 3.1 43 Bridge 11 3.5 28.9 100 Tunnel 1 0.9 20.8 19 TOTAL 163

2.6% 3.9% 1.5%3.4% 0.5% 2.8% 0.5% 4.4% 4.9%

C, D) Alt.2 Alternative. 2 (Recommendable) 18.3 km Length Unit Cost Estimated number km mil USD/km million USD Road 2‐lane 14.7 2.5 36 Bridge 6 1.8 27.1 49 Tunnel 2 1.9 20.8 38 TOTAL 123

0.5% 0.5% 1.5% 5.0% 5.0% 5.0% 1.0% 1.4% 19 Detail of Bypass Route [D]

Temporary Road Initial Phase Road (2-Lane) Full Phase Road Possible Bypass Route • The route planned by ITD is Tunnel located in a rolling hill, and that vertical profile is with many uphill and downhill. So, D1 travel speed will be reduced. • The recommended route is almost flat, even though about 1.0km tunnel is required on the way. D2 • The recommended route is almost new alignment, so Bypass Route the social consideration is Bypass Route [Alt. 1] required. [Alt. 2] • The Nearest point with Army Base (4km) is passed through a tunnel. D3 Custom Station (under construction)

L=1.00 km (Tunnel)

20 Vertical Views and Figures [D] E, F, G) Alt.1 24.0 km Length Unit Cost Estimated Alternative. 1 (ITD Plan) number km mil USD/km million USD Road 2‐lane 22.6 3.1 70 Bridge 1 1.4 34.4 50 Tunnel 0 0.0 0.0 0 TOTAL 119 5.0% 5.0% 5.0% 5.0% 1.4% 4.4% 4.4% 3.4%

E, F, G) Alt.2 28.3 km Length Unit Cost Estimated Alternative. 2 (Recommendable) number km mil USD/km million USD Road 2‐lane 26.4 2.3 60 Bridge 5 0.9 22.5 19 Tunnel 1 1.0 20.8 21 TOTAL 101

5.0% 1.1% 1.3% 4.1% 0.5% 1.6% 0.5% 0.6% 21 ■Comparison of Possible Bypass Route

Bottlenecks ABCD Alternative Alt. 1 Alt. 2 Alt. 1 Alt. 2 Alt. 1 Alt. 2 Alt. 1 Alt. 2

Length (Km) 9.4 9.5 16.8 17.5 18.3 18.3 24.0 28.3

Construction Period 2.2 3.1 1.6 1.7 1.7 2.3 3.8 2.0 (year) *2 (b) (b) (a) (b) (a) (b) (a)

Maximum Grade (%) 2.2 4.5 5.0 3.3 3.9 5.0 5.0 1.6

Time Reduction (hrs) *1 1.0 0.9 0.4 0.5 0.6 0.5 0.6 0.7 Rough Cost Estimation 75 91 99 83 163 123 119 101 (million USD) Cost Difference 1.0 1.2 1.2 1.0 1.3 1.0 1.2 1.0 (ratio) Alt. 1 is economical Alt. 2 is economical Alt. 2 is economical Alt. 2 is economical Remarks route and gentle route and gentle route, but Alt. 1 is route and gentle gradient as well gradient as well gentle gradient gradient as well *1 : Time reduction is to be compared with Initial Phase Road *2 : (a) due to Long Bridge, (b) due to Tunnel

22  Shortening in Travel Time

C D B A E F G

Major Bottlenecks ‐ AB ‐ CC, D ‐ E, DF, G Total Detour Road no needed Alt. 1Alt. 2no needed Alt. 2no needed Alt. 2 FullITD Phase 4 lane Road 5.5 11.0 16.8 40.0 18.3 12.0 24.0 127.6 Section Length (km) Initial Phase 5.9 12.3 18.2 42.9 19.8 13.0 26.0 138.0 Detour (Economical Case) 5.5 9.4 17.5 40.0 18.3 12.0 28.3 131.0 FullITD Phase 4 lane Road 0.10.30.50.80.40.20.73.0 Travel Time (hours) Initial Phase 0.21.20.91.41.00.41.36.5 Trailers Detour (Economical Case)0.10.20.40.80.50.20.62.8 FullITD Phase 4 lane Road 0.10.20.20.60.30.20.31.8 Travel Time (hours) Initial Phase 0.10.30.40.90.40.30.52.8 small Vehicles Detour (Economical Case)0.10.10.30.60.30.20.41.9 ■Length of Bypass (bypass) Section: 73.5 km out of total 131.0 km ■Change of Passing Speed by Bypass Route: Small Car 2.8h ⇒1.9h, Trailer 6.5h ⇒ 2.8h 23 (2) Towards 4 Lane Road Development The initial-phase road includes lot of sections with a vertical grade of more than 8%.

Difficulties for Heavy Trucks smooth travelling through Initial Phase Road, affecting on efficient traffic flow especially when traffic becomes dense. (Traffic Volume:8,000, Heavy Traffic Ratio:20%, 2025 for ITD demand ×80%) ⇒ Needs Bypass Routes shown in the previous pages.

As the SEZ development progress, traffic volume will further increase. (Traffic Volume:11,200, 2030 for : ITD demand ×80%, Far Future for R&B) ⇒ Needs 4 lane road, railway and/or others.

How to develop towards 4 lane road ? Scenario Initial Phase Road ⇒ Bypass Route ⇒ 4 lane Road Option 1 Taking Bypass Route from the beginning ⇒ 4 lane Road Option 2 (Difficult Sections will not be constructed) 4 lane Road with Bypass Route from the beginning Option 3

24 ■ Sub Options for Option 1 for cost reduction For Option 1, when 4 lane is necessary, some sections will be remained as 2 lane, but enabling the road to function as 4 lane as a whole by utilizing roads which will have been already developed. 【Sub Option 1】

For Improved Road Sections Later or No widening of Bypass Sections (red) 4 lanes (Passenger Cars can use initial phase road (class IV) 2 lane Bypass (Class I): Heavy Trucks

4 lanes

To Mawlyamain Improved 2‐lane road 4 THAILlanes 2lane Initial Phase Road (Class IV): Some Passenger cars Bypass Sections (less than 5% grade) Myitta AND 【Sub Option 2】

Later widening of Dawei – Myitta section 2 lanes Dawei-Myitta Dawei Road (Passenger Cars use MOC road (blue), Trucks use the new road (red).

National Road Traffic management No.8 (heavy truck control) To Bangkok

Thai Border

It is also fact that functions of the above sub-options as a 4 lane road will be weaker than the Option 1 itself. This is for consideration in case that cost reduction is required while expansion to 4 lane is necessary. 25 (3) Construction Cost by Option

Phase Initial Phase Full Phase Total Cost Option 1 US$ 215 mill. US$ 382 mill. US$ 851 mill. US$ 1,448 mill. (Bypass) (4 lane) (NPV 909 mill.)(*)

Sub Option 1 US$ 391 mill. US$ 990 mill. (**)

Sub Option 2 US$ 527 mill. US$ 1,126 mill. (**)

Option 2 US$ 623 mill. US$748 mill. US$ 1,371 mill. (Bypass Route from the beginning) (4 lane) (NPV 967mill.)(*) Option 3 US$ 1,131 mill. US$ 1,131 mill. (4 lane from the beginning) (NPV 1,031 mill.)(*) (*) NPVs are calculated based on the 5 % of discount rate. (**) Not including cost for additional widening (4 lane for full sections) probably to be required for the future. Missing cost: Sub Option 1 Widening for Bypass Sections (US$ 460 mill.) Sub Option 2 Widening for the section from Myitta to DSEZ (US$ 324 mill.) Lowest NPV Cost for Option 1, while Highest in Nominal Basis. For Smooth Traffic Flow, Option 2 and Option 3 are better. However, Investment Efficiency and Realities need to be considered as well (shown later).

●Possibility of Railway Development instead of expansion to 4 lane road (shown later).

●Other Issues to be considered Road Traffic Management, Social and Environmental Issues, benefit to communities …, (shown next)

■ Road Construction Cost including Several Expenses Initial Phase Road Full Phase Road 4-lane widening 2-lane Bypass Total 2-lane (Class IV) and upgrading to (Class I) Class I Construction Cost 215 382 851 1,448 Option 1 Consulting Fee(*) 11 38 85 145 Compensation 2 1 2 5 Contingency(*) 23 84 187 318 Total 251 505 1,125 1,916 2-lane with bypass 4-lane widening (Class I) Construction Cost 623 748 1,371 Option 2 Consulting Fee 62 75 137 Compensation 2 2 4 Contingency 137 165 302 Total 824 990 1,814 4-lane (Class I) Construction Cost 1131 1,131 Consulting Fee 113 113 Option 3 Compensation 4 4 Contingency 249 249 Total 1,497 1,497

Financial/Cash Flow Analysis will be conducted based on the above cost. (Consulting Fee: 10%, Contingency: 20%, for (*) Consulting Fee 5%, Contingency 10%) The above cost does not include price escalation. 27 1-4. Traffic Management Plan ■ Comprehensive Plan to Secure Road Safety and Smooth Traffic Flow  Safety Issues  S-1: Pedestrian in Community Area Over-Load Management Issues S-2: Guardrail for Mountainous and Community Area O-1: Check Points and Strict Penalties  S-3: Traffic Signs, any Safety Roadside Facilities (e.g. Curve Mirror) Cross Border Issues (Gov. to Gov. / AEC matter) for Critical Points C-1: One Stop Border Post  Traffic Control Issues C-2: Non “Back-to-Back” System T-1: Heavy Traffic Control on MOC Road (Impassable or time regulation) C-3: Security Check System for Cargo T-2: Speed Limit in Community Area C-4: Smart CIQ T-3: Vehicle Speed Indicator / Monitoring and Penalties T-4: Area Pass License for Community ■ Location Sample (Initial Phase) for each Traffic Management Components S1 T2 S2 T4 T3

O1 T3 C3 O1 T3

T1 C1 C2 C3 C4 S3 Any appropriate points T3

28 1-5. Social & Environmental Considerations (1) Nature and Social Conditions along the Road  Environmental Conservation Area

Source: Conservation Platform, UNEP & WCMC Myanmar Biodiversity Conservation Investment Nature High Vision, Wildlife Reserve Priority Conservation Society, Area Diversity 2013 Natural Area Park  Biodiversity in Myanmar (Number of Species) Saddle Hill Critical Endangered Endangered Category Endangerment Species IB Species II Total IA（CR）（EN）（VU）

Mammals 410 2640

Birds 5 7 37 49

Reptiles 613 625

Invertebrates 00 11 Potential Tiger Plants 13 12 13 38 Crossing Point Elephant Cry Hill Total 28 42 83 153 29  35 households inside road ROW without Hti Hkee area  348 households within 500m belt of initial road C/L

(2/182 (2/48) ) (2/59) (2/28) Dawei SEZ

(1/372) (2/19) (68)

(2/33) (79) (3/54) (386) (2/19) Number of Number of Households (11/103) (5/130) Direct Impact Household (85/85)

(3/66)

Road will pass through sensitive areas both views of social and natural environment. The Government need to take appropriate counter measurements. Details are shown in reference.

30 1-6. Measurements for Benefiting to the Communities living along Access Road

 Local Roads Improvement To support local communities livelihood to separate/demarcate the function against access road  Job Creation To make job opportunities for community people to improve livelihood conditions utilizing “Toll Plaza”, “Vista Point Facilities”, “Market along the Access Road”, etc.  Public Transportation Service To maintain and support accessibility and mobility through improvement railway and bus service in collaboration with access road  Other Social Services To support social services enhancement such as medical, school, market, etc,. through linkage & synergy effects with access road 31 2. Technical Analysis II: Railway Development

2-1. Basic Policy and Features of Route Alignment

2-2. Alignment Plan (All Sections/Dawei~Thailand)

2-3. Cost Estimation

2-4. Operations of Freight Train

2-1. Basic Policy and Features of Route Alignment

Horizontal Alignment ・Not to depart greatly from the alignment of an existing road and the new planned road. ・To make a bypass from an area where it might be steep gradient and soft subsoil. ・To cross the river orthogonally as much as possible. Vertical Alignment ・Preferable flat alignment as much as possible. ・To avoid tunnels or bridges to make the construction cost lower. Design Specification

Items Specification Power System Diesel Engine Gauge 1,000mm (Meter Gauge) Minimum radius of Design maximum speed: 110km/h and below 400 m curvature Design maximum speed: 90km/h and below 250 m Design maximum speed: 70km/h and below 160 m Transition curve Main line Cubical parabola Maximum slope Towage section by locomotive 25/1,000 gradient Termination section of train 5/1,000 Radius of vertical Radius of curvature: over 600m R=2,000m curve Radius of curvature: 600m and below R=3,000m ■Maximum Speed: 110km/h (70km for most difficult points) ■Travelling Time from Dawei SEZ to Connection Point: 2.5 hours 33 2-2. Alignment Plan (All Sections/Dawei~Thailand)

Structure Length Ground Work 14.7ｋｍ Earth Work 138.0ｋｍ Viaduct 11.6ｋｍ Tunnel 13.8ｋｍ Track 178.1ｋｍ

Alignment Plan (Dawei to Myitta)

Myitta

Myitta to Thai Border 35 2-3. Cost Estimation Cost for Single Track Cost for Double Track Structure Length Cost (million US$) % Cost (million US$) % Ground Work 14.7km 12.35 1.7 20.58 1.7 Earth Work 138.0km 347.76 49.2 455.40 38.5 Viaduct 11.6km 68.44 9.7 114.84 9.7 Tunnel 13.8km 126.96 18.0 300.84 25.4 Track 178.1km 142.48 20.2 284.96 24.0 Station 2 Sta 8.60 1.2 8.60 0.7 706.59 1,185.22 Total 178.1km 100.0 100.0 (M:590.39, T:116.20) (M:1,007.72, T:177.50)

Items Cost Remarks (1) Construction Cost 1,185.22 In case of double track (2) Rolling Stock 59.26 (1) * 5% (3) Consulting Fee 118.52 (1) * 10% (4) Land Compensation 2.00 Only in Myanmar (5) Contingency 260.75 ((1) + (3)) * 20% (6) Total 1,625.75

36 2-4. Operations of Freight Train ■Volume of Transportation - Theoretically, 240 trains can be operated for both ways with double track (every 12 minutes for 24h) if assuming enough related facilities and staff including freight cars, freight handling yards, safety facilities (signals…), etc.. cf. 10 trains/day for single track (only one interchange point (Myitta) - Each train can transport equivalent to 30 trailers with 20 freight cars, suggesting that they can transport equivalent to 7,200 trailers/day, assuming railway is fully used exclusively for freight. - Actual transport volume will be determined by demand. (it is appropriate that at most 20% of total freight will be transported by freight trains according to the actual transport share of train.) ⇒19 round trip/d in 2030 (traffic demand of road: 11,200 = ITD×80%) (railway first case), 30 round trip/d in 2040 (traffic demand of road: 15,200 4 lane road first case) ■Propose Double Track Railway - Traffic volume exceeding capacity of 4 lane road is forecasted in 2040, or that of 2 lane road in 2030 if planning railway prior to expansion to 4 lane road. Although it is not sure the demand will follow the forecast, we can expect that demand will be forecasted to increase higher at the timing when railway is seriously considered, facing with increasing demand. (As shown in the above, transported volume will exceed capacity of single track.)

- Financial Analysis will be conducted based on Double Track. 37 3. Financial Analysis 3-1. Analysis for 3 options for road development 3-2. Analysis whether 4 lane road first or railway first 3-3. Analysis on possibility for separated SPC (Initial Phase SPC and Bypass Sections SPC) Analysis Method a. Sequence of Analysis (i) Select best options among 3 options for road development ⇒ Supposing this decision need to be made very soon.

(ii) Conduct Analysis of timing of railway based on the above selected options ⇒ Supposing the decision can be made by seeing real demand after development of 2 lane road. (If Option 3, four lane road from the beginning, is taken, this decision is not necessary.)

b. Method: Return from Project (FIRR)and Evaluation as an investor (Equity IRR) For analyzing budget burden for the government, conduct preliminary Equity IRR (EIRR) analysis which shows feasibility of BOT or PPP scheme. (detail analysis needs to be conducted by potential investors since preference of burden/risk sharing varied among them.

Conduct analysis on feasibility for separated SPC (3-3.)

38 3-1. Analysis for 3 options for road development

(1) Assumption: • Timing of Bypass Section, 4 Lane Road: 2025, 2030 each (following “ITD×80%”) • Tariff: (Unit: USD, P: Small Car (all cars excluding heavy truck and trailer, T: Heavy Truck) Option 1 Initial (2018) Bypass Route (2025) 4 lane (2030) Tariff each section S: 5, H: 20 S: 15, H: 60 S: 20, H: 30 Total No Use of Bypass S: 5 , H: 20 S: 5, H: - S: 20, H: - Total: Use Bypass S: - , H: - S: 20(5+15), H: 80(20+60) S: 35(20+15) , H: 90 (30+60) - All Traffic pass and pay for Non Bypass Routes (initial phase and 4lane ) This Tariff - Heavy Traffic be obliged to use Bypass, Small Cars can select either (assuming 20% use it). Scheme is just - Only Traffic passing Bypass pay for additional tariff for the section. an Idea!! ← Considering fairness between users of Bypass and Initial Phase Road and Recovery of higher Cost of Bypass

No Bypass Sections Bypass Sections (～2029, 2030～)

Pay 5 (～2029), 20 (2030～) Initial Phase Road : Total for Bypass no-User: 5, 20 Small no additional pay car Bypass: pay 15 Total for Bypass User: 20, 35

Pay 20 (～2029), 30 (2030～) Bypass: Pay 60 Heavy Traffic Total : 80, 90

Option 2 & 3 2018 2025 2030 Tariff S: 5, H: 20 S:20, H:80 S:35, H:90 39

(1) Assumption (Continued): • Borrowing Terms and Conditions (1%, 30 years (inc. 10 year grade), only for Equity IRR • Equity Ratio: 30% (excluding Initial Phase, small % based on actual practice. (2) Result:

FIRR Equity IRR Remarks (Possibility of less Government Burden)

Option 1 8.21% 19.67% With ambitious tariff and low borrowing cost, there is possibility for BOT to be realized. (Other risk sharing mechanism may be required.) Option 2 6.95% 11.45% Less than level of BOT, additional measures are required (tariff up, Budget Support, etc.) Option 3 4.49% 7.16% Huge Cash Short (USD 208 mil.) and Unfeasible as a Private Project Option 1 > Option 2 > Option 3: -When Private participates, they usually require around 20% Equity IRR or more (depending on companies). Measurements for Option 2 to be Tariff Up Tariff needs “×1.6” of the above level same EIRR level (19%) of Option1 Subsidy 40% of Total Construction Cost Other Issues to be Considered: - If Option 2 or 3 taken, the current concession needs to be largely changed. Especially, even with low borrowing cost, Option 3 is far away from feasible level of BOT scheme. ⇒Reformation of the concession will take a some period.

- Initial Phase Road is efficient until 2025? (See Next Page) Our evaluations: Option 1 is most realistic and technically Viable. (despite, Option 2 is remained for the following Analysis.)

40 ■ Traffic Situation of Initial Phase Road (Y2025)

1. Road and Traffic Conditions 3. Traffic Situation Item Study Case  Driving at peak time in 2025 could become difficult situation to pass a vehicle traveling ahead Number of Lanes 2  Driving at off-peak time in 2025 is possible to pass Daily Traffic Volume 8,000 (Y2025) because average spacing (220m) is longer than Heavy Truck Ratio 20% minimum passing sight distance (160m, Myanmar Standard or AASHTO) 55 – 70km/h (Rolling) Design Speed 40 - 55km/h Peak Off-peak (Mountainous)

2. Density and Average Spacing (per direction)

Peak Off-peak Item Hours (*) Hours

Density (vehicle/km) 9.1 4.5

Average Spacing (m) 110 220 (**) (*) Peak hour ratio and off-peak hour ration are assumed to be 10% and 5%, respectively (**) Average spacing is calculated based on V=50km/h for small cars 41

■Sensitivity Analysis

IRR Interest Rate Tariff (No change for the future) Equity IRR FIRR (1%→5%) (Small: US5, Heavy: USD20) Option 1 10.51% -3.87%

Option 2 6.90% -3.72% Borrowing from private may require more support from the Government. A finance scheme similar to the initial phase road is preferable. (again, other burden sharing mechanism may be required from potential investors.)

42 3-2. Analysis whether 4 lane road first or railway first (1) Analysis on Railway a. Assumption ■ Timing: When additional measurements required, Case 1: Widening Road to 4 lane ⇒ Railway when demand increase further (2040) Case 2: Railway (2030) ⇒ Widening Road to 4 lane Case 3: Widening Road to 4 lane and Railway at same time (2030)

2016 2020 2025 2030 2035 2040 Case 1 2-lane (Class IV)

2-lane Detour (Class I)

Railway

4-lane Widening and upgrading to Class I

Case 2 2-lane (Class IV)

2-lane Detour (Class I)

4-lane Widening and upgrading to Class I

Railway

■ Other Prerequisite • Operation cost is 85% of annual revenue • Major refurbishment will take place every 15 years at 10% cost of the initial investment. • 20% of the total traffic will shift to Railway • Analysis based on Double Track (If about 20% of the total traffic shifts to the railway, double-track is necessary from the beginning) 43 a. Assumption (Continued) ■Revenue

Items Year Volume Tariff Revenue Remarks (x1,000 US$/year) Cargo 2030 1,360 77.6 38,521 US$/TEU 2040 2,720 77,041 2050 3,680 104,232 Passenger 2030 4,680 6.53 11,155 US$/pers. 2040 5,040 12,013 2050 5,520 13,157 Total 2030 49,109 2040 89,621 6.2% growth rate 2050 117,389 2.7% growth rate Passenger Cargo Fare gap Japan 0.15 $/km 0.102 $/ton･km*1 1.0 Thailand 0.024 - 0.030 $/km (1st)*2 NA 5.0 - 6.3 (Comparison in 0.012 - 0.015 $/km (2nd)*2 10.0 - 12.5 Tariff) Myanmar 0.0076 $/km (Ordinary) NA 19.7 0.0189 $/km (Upper) 7.9 *1: Calculation based on container type basis, it is subject to additional terminal fee 34 $ *2: It is subject to Express fee $2.4 - $5.4 and Air conditioner service fee $1.5 - $5.4 in case of use

Estimation for SEC Rail Corridor (L=178.1km) Passenger Cargo (20ft Container) Applied gap rate*4 Japan 299.4 $ 1.0 Thailand 8.2 - 9.2 $ (1st)*3 149.7 $ 2.0 Basis 6.0 - 6.6 $ (2nd)*3 74.85 $ 4.0 Myanmar 1.4 $ (Ordinary) 8.9 $ 20.0 Basis 3.4 $ (Upper) 22.0 $ 8.0 *3: Express and Air conditioner service fee are included *4: Parameter for calculation of cargo fee based on Japan case

44 Railway (Continued) Result of FIRR Case FIRR Case 1 (Railway First), Case 3 (Same Time) -4.61% Case 2 (4 Lane First) -3.32%

Sensitivity Analysis (Case2) Case FIRR (1) Base case -3.32%

(2) Demand Share of Railway (20% ⇒ 50%) 0.94%

(3) Government aid 50% -0.98%

(4) (2)+(3) 4.22%

(5) Scheme of separating infrastructure and 4.31% operation • *: In case of “scheme of separating infrastructure and operation, the Government will become the railway operator owning the facilities while some SPV will be the railway operator operating the line. The SPV will prepare the rolling stock, about 15% in the total cost. Our Evaluation: ‐ FIRR of the Railway is low, probably because Railway has a big capacity, while difficult to increase its use up to the level of creating enough return in short time. ⇒Needs to be implemented as a government project or PPP with relatively small private burden. ‐ Railway has a plenty of merit, including punctuality reaching destination and less burden to environment. Technically, it has a big capacity enabling South Corridor to meet future demand for the long future. ‐ It is admirable to judge the introduction of railway taking those above merits into consideration. 45 3-2. Analysis whether 4 lane road first or railway first (2) Combine Road and Railway

■ Result Case 1 (4 lane First)(**) Cace 2 (Railway First)(**) Case 3 (same timing)(**) FIRR(Total) FIRR (Road) FIRR (Total) FIRR (Road) FIRR (Total) FIRR (Road) Option 1 (*) 4.85% 7.32% 4.58% 8.51% 3.09% 6.58%

Option 2 (*) 4.31% 6.23% 4.39% 6.97% 2.88% 5.63%

(*) Option 1: Initial Phase ⇒ Bypass ⇒ 4 lane, Option 2: Bypass from the beginning ⇒ 4 lane (**) Case 1: 4 lane in 2030 and Rail in 2040, Case 2: Rail in 2030 and 4 lane in 2040, Case 3: both in 2030

Our Evaluation: - No big differences in both cases of 4 lane first and Railway first. - When expansion of South Corridor becomes necessary, decision can be made based on the actual situations then, including strategic priority of railway, needs from private, etc.

At this moment, we would like the issues to be open for the future.

- Lastly, even when railway development comes later, it is more preferable that transfer service operations will be provided at Kanchanaburi areas, uploading or downloading from railway to road traffic or vice versa for more efficiently connecting from Dawei to Lemchabang or other Mekong Areas.

46 3-3. Analysis on possibility for separated SPC (Initial Phase SPC and Bypass Sections SPC) ■Assumption: Another Concession will be issued for the Bypass Sections. (Possible only for SPC 1) Responsibility

Current Concession (i) Initial Phase Road (ii) Widening (4 lane) / Improvement of the sections constructed as the initial Phase Road Future Another Concession (i) Bypass Route (ii) Widening (4 lane) of Bypass Route

■Result: FIRR Equity IRR

Current CA 7.42% 20.08%

Future Another SPC 8.79% 18.73%

Our Evaluation: - When new potential investors show their interest for the road project, this option can be considered. There is possibility that more creativity, more appropriate / smart technology and services can be introduced. - This does not be determined very soon and the decision is for the starting Bypass Road. 47 4. Development Scenario for Southern Economic Corridor (Suggestions and Issues to be Considered) Our opinion is development will be determined by  Development Scenario triggers rather than year Decision on Option 1 or 2 ・This needs to be determined very soon.

・2 lane road can be enough until 2030(Traffic Volume:11,200) Decision on a) Road Widening or Railway firster ・5‐6 years necessary from F/S to starting operation. and b) Timing of Next Measurements ・Timing can be determined in accordance with actual demand of the road

48 Action Plan  Road Map of Southern Economic Corridor Project (based on ITD×80%)

Feasibility study Engineering Service Construction

• Pre F/S for SEC 2016

2017 2-lane Initial Phase Road (Class IV) F/S and EIA for SEC 2018 (Bypass Road) starts

2019

• E/S for 2-lane bypass road 2020

F/S and EIA for Railway or 4 2-lane bypass road (Class 2021-2024 lane road I) • E/S for Railway or 4 lane Railway or 4 lane road 2025-2029 road

F/S and EIA for 4-lane road 2030-2034 or Railway

• E/S for 4-lane road or 4-lane road or Railway 2035-2039 Railway (2039～) 49 Suggestions and Issues to be Considered 1) Development Scenario

- Option 1 is most realistic and feasible. For Bypass Route Development and beyond it, timing can be determined in accordance with further analysis of transportation demand (or/and actual demand after Initial Phase Road Operations start) and actual progress of SEZ development and Deep Sea Port. The important is triggers rather than timing referred in the survey. Development Trigger ①Bypass Deep Sea Port Staring Operations or Traffic Volume:8,000, Heavy Traffic Ratio: 20% ②4 lane Road/Railway Traffic Volume: 11,200 veh./day ③Railway (when 4 lane taken above②) Traffic Volume: 15,500 veh./day (road) 4 lane road (when railway taken above②) Traffic Volume :11,200 veh./day (road)

- For Bypass Road, F/S and EIA will start from 2017～2019 taking into account time required for preparation.

- There is possibility for another entity to participate in Bypass Route Development. It is suggested that such possibility will be explored.

2) Project Implementation Scheme for Bypass and further measurements

- Even though return is seen at the level for the project to be implemented under BOT or PPP scheme, additional burden sharing may be required from potential investors. Risks will be increase by inflation in the future. For BOT or PPP scheme, careful consideration as well as close communication with potential investors will be required.

- Our suggestion is that the government will take more active role for transportation development of South Economic Corridor.

3) Natural and Social Aspects

- Part of the target road, in particular, the Myitta – Dawei section, runs through the area under control of the Karen, and establishment of the cooperative system with them. The area also include habitats for animals in danger. EIA and Resettlement plan with international standard needs to be prepared and appropriate action should be taken.

4) Road Traffic Management

5) Affirmative Measurements for people living along the road

- Local Roads Improvement, Job Creation (offering job opportunities for community people, “Toll Plaza”, “Vista Point Facilities”, “Market along the Access Road”, etc.), Public Transportation Service and other Social Services with linkage of the road

6) More Detail Technical Survey

- The road should contribute to people’s lives as well as industrial development. Proposed Bypass Route contains mountain tunnels. Several more detail surveys need to be conducted, including the geological, ground water and topographic surveys 51 References

1. Issues and Solution on Initial Phase Road for Heavy Trucks

2. Impact/Benefit for Myanmar

3. Social and Nature Environment Issues

4. Evaluation of Full Phase Access Road Construction

5. Scenario for Implementation of Dawei SEZ and Infrastructure

52 1-1. Issues and Solution for Initial Phase Road for Heavy Trucks Difficult Section for Heavy Trailers to Climb • Target Vehicle Type： Trailers (full loaded) • Vehicle Performance：7 PS/t Conditions • Design Speed：50km/h (※1) • Allowable Minimum Speed：25km/h (50% of design speed) • Section with driving speed 0 – 10km/h (quite below Criteria allowable minimum speed)

Results • 10 Sections

• Improvement of Vertical Grade Solution 1) Improvement with Minor Alignment Change 2) Improvement with Large Scaled Change, e.g. Tunnel • Difficulties of passable of heavy truck might affect incentive for DSEZ investment Remarks • Improvement section of vertical alignment is maximal use for Full Phase Road so that it could be reused in the future

※1 Design Speed for Initial Phase Road is assumed to be 50km/h 53 1-2. Issues and Solution for Initial Phase Road for Heavy Trucks Difficult Section for Heavy Truck to Climb • Target Vehicle Type： Heavy Trucks (full loaded) (※1) • Vehicle Performance： 10 PS/t Conditions • Design Speed: 50km/h (※2) • Allowable Minimum Speed： 25km/h (50% of design speed) • Less than allowable minimum speed and section length is Criteria over 200m

Results • 16 sections

Solution • Installation of Climbing Lane

• Timing of truck lane installation shall be taken into Remarks consideration of traffic condition, i.e. Traffic Volume and Heavy Traffic Ratio Truck lane function To secure road capacity, safety and smooth traffic flow at climbing section by separating trucks and other vehicles (Passenger cars, Small trucks, etc.) ※1Trucks：Maximum loading capacity over 5t or Vehicle weight over 8t (Small Trucks： Maximum loading capacity is under 3t) ※2 Design Speed for Initial Phase Road is assumed to be 50km/h

54 2. Impact/Benefit for Myanmar

Benefit Description Miscellaneous/Relevant Category activities for further benefit

Benefits to • Standard of living uplift for the locals • Set up rest space / facilities Myanmar • Infrastructure improvement and better public along the road people facilities • Market / shops along the road • Tremendous job creation and employment Benefits to • Great business prospects for local ventures from • Logistics-hub facilities Myanmar increased regional logistics connectivity • Facilities for long-haul drivers, businesses • JV potential between local and foreign companies e.g. accommodation, etc. • Improvement of industrial development • Logistics-own companies, e.g. • Vast business opportunity from huge FDI inflow custom agent, etc.

Benefits to • Economic growth Myanmar • Expansion of economic activities from high-density • Any preparation for accept of nation Yangon labor from other region • Improvement of income distribution / narrowing of including migrant workers the income gap • Generation of national government income stream through tax collection • Improvement of national credibility

Source: Roland Berger 55 3. Social and Nature Environment Issues (2) Potential issues on nature environment & social conditions Category Issue factors Considerations Environment Potential negative impact by emission of exhaust gas, Potential positive impact by 1) Air Quality Impacts reduction of earth road dust 2) Water Quality Clean water maintain by prevention slope failure and erosion 3) Ecological System Impact on endangered species such as Tiger, Elephant, etc. 4) Topography and Geology For an location of large scaled cut slope and structure Social 1) Involuntary Resettlement Fair compensation for potential 30 – 40 households Impacts 2) Ethnic Minority Group Consideration for KNU communities 3)Regional Economic on Employment Physical compensation system for firmer and households which lives by own land and Livelihood properties, and technical compensation for livelihood development 4) Land Use and Natural Resources Protection and control for poaching to conservation area 5) Beneficial Conflict in the Region Beneficial compensation in practical area by KNU 6) Landscape Large scaled cut-slope and road structure in conservation forest area 7) Accident Traffic safety for communities people along the road 8) Cross Border Impacts Economic positive impact through cross border traffic volume (3) Action to be taken by Myanmar Government  Organizing Legal Framework

1) Environmental Impact Analysis (EIA) procedure Formal regulation on EIA approval system is still under process in Myanmar cabinet. 2) Fair evaluation on international criteria for EIA to be submitted EIA report should be strictly checked to follow international assessment criteria and include both environmental and social impacts and recommendations for minimizing and mitigating ecological negative impacts. 3) Fair compensation & practical compensation system Fair compensation including international requirements such as livelihood compensation should be considered and be reformed for practical compensation system. 4) Preparation for Strategic Environmental Assessment (SEA) SEA should be developed to ensure that environmental and social considerations are taken into account at the outset of the entire Dawei project and Tanintharyi region. It should include not only road but general description of the plan for the Dawei project.

56 (3) Action to be taken by Myanmar Government (Continued) ■Planning and Coordination

1) Preparation for General land use plan for the Tnanintharyi region Integrated land use plan covering Tanintharyi region wide should be developed to guide primary and secondary industrial development, to avoid negative impacts communities, wildlife and the natural environment. 2) Sensitive section avoidance The road crossing should avoid habitat fragmentation in protected areas based on their national and international status. Road alignment even if short bypass should be considered on ecological corridors, migration, and distribution of important species. 3) Planning for Natural resource control Management plan and regulation should be developed to guide ecosystem and forest protection, including wildlife conservation and systems for poaching of illegal wildlife and/or natural resource trade. 4) Coordination with relevant organizations International organizations such as WWF and other NGOs are keen to conserve an biodiversity area, and made recommendation upon ecological aspects.

■Design, Monitoring, and Offsetting

1) Consideration for Wildlife crossings Such as elevated road sections, tunnels, etc. are needed to maintain connectivity, and to ensure wildlife can safely cross the road, decreasing risks for wildlife-vehicle accidents. 2) Monitoring Effective monitoring system should be developed in collaboration with organizations concerned involving communities and NGOs. Appropriate collision-mitigation measures should be updated according to the monitoring. 3) Offsetting When the above mitigation measures are insufficient at a site of concern, offsetting should be implemented as final method. Large scaled cut slope, actually, has be done at site for Initial-phase road project, which is difficult to reform.

Offsetting measures should include habitat protection, creation or restoration that would increase biodiversity and ecosystem to an equal to or greater than what is lost at the original site. 57 4. Evaluation of Full Phase Access Road Construction

Option Option 1 Option 2 Option 3 Based on the initial phase road by ITD, the bypassThere remains many difficult sections forFrom the beginning, 4-lane road of Class I Outline road is constructed to make heavy trucks passheavy trucks to climb. The 2-lane road ofis constructed for heavy trucks to pass smoothly, followed by the 4-lane widening andClass I is constructed from the beginning. smoothly as same as the Option 2. upgrading to Class I Initial Phase 2nd Phase 3rd Phase 1st Phase 2nd Phase 1st Phase 2-lane road of2-lane bypass4-lane widening2-lane road with4-lane widening of4-lane road with bypass road for Stage ConstDOH Class IVfor bottlenecksand upgrading tobypass road forthe first phase road bottlenecks with ASEAN Class I Standard with ASEANASEAN Class I bottlenecks with Class I ASEAN Class I Length and 138.0km 73.5km 131.0km 131.0km 131.0km 131.0km Cost 215million US$ 382million US$ 851milliom US$ 623million US$ 748million US$ 1,131million US$ Total Cost 〇 909 million US$ × 967 million US$ × 1,031 million US$ (NPV) Bridge: 1.5km Bridge: 3.7km Bridge: 7.2km Bridge: 7.2km Bridge: 7.2km Bridge: 7.2km Main Tunnel: 5 qty. Structures Tunnel: None Tunnel: 5 qty.Tunnel: 5 qty.Tunnel: 5 qty. Tunnel: 5 qty. (L=5.9km) (L=5.9km) (L=5.9km) (L=5.9km) (L=5.9km) Eqt. IRR 〇 19.67% 11.45% × 7.16% It is supposed for the initial phase road. It takes time due to a big amount. It is difficult to prepare its fund due to Fund 〇 Relatively easy for the second phase due to a × a big amount. small amount. The D/D of the initial phase has already It takes time for D/D, fund It takes time for D/D, fund allocation Const. 〇 finished and the contractor has assigned. allocation and procurement and procurement before construction Commen- Then, it is possible to start soon. × before construction. × cement Response to In the initial phase, the heavy trucks can’t It is possible for heavy trucks to It is possible for heavy trucks to pass Traffic pass smoothly, and the operation of SEZ will 〇 pass smoothly from the beginning 〇 smoothly from the beginning. Demand be constrained. Japanese 〇 The detailed assistances are available by It takes time to procedure due to a It is difficult to coordinate due to a Assistance section in both grant and loan. big amount of construction cost. × huge investment cost. Large impacts in large area due to three times Two times construction works. 〇 Only one time construction works EIA × construction works. and its area is limited. Total Point 55 points (〇5、△1、×1) 30 points (〇1、△4、×2) 20 points (〇2、△0、×5) The road improvement responding to the SEZ It is possible to cope with heavy It is possible to cope with heavy progress and the traffic volume increase is trucks from the beginning. trucks from the beginning. However possible though it is difficult for heavy trucks However, it is difficult to finance its initial cost is huge and it is difficult to pass smoothly at first. Various supports immediately. It takes time to start to finance. The financial feasibility is Evaluation 〇 from Japan are possible. However, some △ construction considering the time × severe and a large public support is attentions are required on the design and of D/D, procurement and etc. required. construction work considering the stage Those will disturb the early start construction. operation of SEZ.A financial risk is also large. *: Total point is calculated under the condition of 〇: 10 points, △: 5 points and ×: 0 points.

58 5. Scenario for Implementation of Dawei SEZ and Infrastructure

2019-2024 2025-2029 2030-2034 2035-2039 2040- Industrial • 7 km2 • 19 km2 • 72 km2 • 84 km2 estate • Small port • Deep seaport • 22 berths • 36 berths Seaport with 12 berths Residential • 5 km2 • 10 km2 • 21 km2 • 39 km2 DSEZ • 0.35 m (2025) • 0.89 m (2045) overall employees DSEZ • 1.21 m (2025) • 3.33 m (2045) overall related population Traffic • 4,000 veh./day • 8,000 veh./day • 11,200 veh./day • 13,600 veh./day • 15,200 veh./day Volume • 10% of HT • 20% of HT • 30% of HT • 40% of HT • 45% of HT Cargo • 800 TEU • 3,200 TEU • 6,720 TEU • 10,880 TEU • 15,200 TEU (TEU/day) Passenger • 10,800 pers. • 19,200 pers. • 23,520 pers. • 24,480 pers. • 25,080 pers. (pers./day) • 2-lane Initial • 2-lane bypass • 4-lane Phase Road Road (Class I) widening and Road (2019) (Class IV) upgrading to Class I • Dawei to Railway Kanchanaburi

2．Tunnel Technology

App 2-1

Pre F/S FOR SOUTHERN ECONOMIC CORRIDOR IN MYANMAR

Tunnel Technology

Japan International Cooperation Agency (JICA) Yachiyo Engineering Co., LTD. (YEC) Central Consultant Inc. (CCI)

2 TABLE OF PRESENTATION

1. OUTLINE There are two Tunneling Methods. This presentation focuses on mountain tunnel because the project area is located in mountainous region. 3

■Tunneling Methods ①Mountain Tunneling Method (NATM) The shotcrete and rock bolts etc. prevent the deterioration of shearing force and reinforce the rock mass.

①Mountain Tunneling Method

Shotcrete Lining concrete Rock Bolts

■Tunneling Methods ②Shield Tunneling Method The excavation is done by shield machine and the surrounded rock mass is stabilized by assembled segment. ②Shield Method

Segment 5

Shield Machine

(Source: Metropolitan Expressway Co., Ltd.)

6 Shield Machine

Jack Segment

Shield Machine Ventilation Facilities

Cutter Disk Segment

Segment

Fire-extinguishing Lighting Facilities Facilities (Source: Metropolitan Expressway Co., Ltd.) 7 ■Comparison of Tunneling Methods

NATM Shield Tunnel Summary The shotcrete and rock bolts The excavation is done by etc. prevent the deterioration shield machine and the of shearing force and surrounded rock mass is reinforce the rock mass stabilized by assembled segment Characteristic To use the geological stress To support the surrounding of the surrounding rock mass rock mass by shield and to stabilize the tunnel itself segment to stabilize the tunnel Used for Mountainous area Urban area Cost USD 20,8 million USD 133,3 million (Only construction per 1 km long & 2 lanes per 1 km long & 2 lanes cost excluding maintenance cost)

■Construction Steps

① Excavation Excavation Mucking ②Mucking Repeat

③Steel Support Steel Support

④Shotcrete

⑤ Rock Bolt Shotcrete

⑥Invert Concrete

⑦Waterproofing Sheet Rock Bolt ⑧Lining Concrete 9

■NATM Construction Cycles （動画）

Construction Cycles（Excavation）

1 Drilling for blasting 11

Construction Cycles（Excavation）

2 Charge for blasting

Construction Cycles（Excavation）

3 Excavation by roadheader 13

Construction Cycles（Excavation）

4 Mucking

Construction Cycles（Excavation）

5 Primary shotcrete 15

Construction Cycles（Excavation）

6 Placing steel support

Construction Cycles（Excavation）

7 Secondaly shotcrete 17

Construction Cycles（Excavation）

8 Rock bolt

Construction Cycles（Excavation）

9 Completion of excavation 19

Construction Cycles（Lining）

１ Before lining after placing waterproofing sheet

Construction Cycles（Lining）

2 Wet curing of lining concrete 21

■The Points on Planning Mountain Tunnel １．Topography ・To avoid fragile ground such as landslide, fracture, collapse and spring zones ・To secure the overburden of 2D thick for the section under valley or stream.

■The Points on Planning Mountain Tunnel ２．Horizontal Alignment ・The straight or curve with large radius is recommended from the aspects of construction, driving and safety.

Securing Visibility

Straight Curve Curve

CASE-1 CASE-2 Straight section starting before tunnel Tunnel located in large curve section 23

・In case of parallel tunnels, the sufficient distance must be secured not to affect each other. （Distance between tunnel centers: minimum 30 meters）

Distance between centers min. 30 meters

■Portalling and Countermeasure for Disintegrative Soft Ground 25

Construction Steps

Shotcrete for face Cross Section

Placing steel pipes

Grouting into overbreak

Longitudinal Section Grouting into rock mass

Excavation

One shift: 9m

Excavation

Placing Steel Pipes

Grouting Grouting into overbreak

Grouting into rock mass 27

■Points for Construction of Mountain Tunnel 1．Countermeasure on rainy season 2．Attentions to local residents and environment ・Noise and vibration ・Water pollution ・Air pollution ・Rare plants and animals

■Maintenance Tunnel Facilities are regularly inspected to be soundly maintained.

Traffic sign Jet fan Absorbent plate Warning display Ceiling plate Close近接目視作業状況 Visual Inspection Cables Peeling protection Lighting Leakage control Cladding panel アンカーボルトAnchor-bolt Lining

Carriageway

Drainage Hammering打音検査作業状況 Inspection Inspecting the fixing conditions of facilities 29

2）To secure the safety not only in a normal time but also in an emergency, facilities for ventilation, lighting and evacuation guiding etc. are equipped.

Clearance Ventilation

Lighting

Maintenance way Maintenance way

Fire-extinguish & Communication

Evacuation guide

■Conclusions

１．According to the existing geological documents, aerial photos and site investigation, NATM which covers from unconsolidated layer to hard rock is deemed to be effective for the project area.

２．For mountainous region, the tunneling is effective way in keeping proper longitudinal slope.

３．To constructing the tunnel, the geological surveys shown on next slide are required. 31

Plan of Geological Survey Stage Required Survey Purpose Item Remark

①Documentary research Conducting Planning Data collections ②Evaluation from aerial photo within ③Site investigation current etc. project

Basic Design Points of design & ①Boring survey To be construction along ②Elastic wave exploration conducted the selected route etc. in future

Detailed Design Survey ①Boring survey To be supplementing ②Laboratory test conducted previous surveys etc. in future

Survey for safety ①Pilot boring To be Construction construction ②Monitoring of face conducted ③Forward exploration in future etc.

Reference Data 33

■TOPOGRAPHY １）Characteristic of Geological Structure ・Since both Myanmar and Japan are located around trench, they have fragile geological structure which has faults and fractured zones.

2) Topography Myanmar has many mountainous regions in the same way as Japan, and its topography and geological conditions are similar to the ones of Japan. Therefore the experiences of mountain tunnels in Japan will be good examples, and accordingly NATM is appropriate method for the project area. 35

■ Experiences of Mountain Tunnel in Japan １）Japan is one of the world’s top experienced country in mountain tunnel even though its geological structure is fragile.

■ PHILOSOPHY OF NATM （Mountain Tunneling Method） ①NATM is… Typical Cross Section N ⇒ NEW

A ⇒ Austrian

T ⇒ Tunneling

M ⇒ Method 37

② Definition of NATM ・According to the condition of rock mass, shotcrete, rock bolts and steel support are applied individually or in combination for the stabilization of rock mass ③ Idea of NATM ・ To use the geological stress of the surrounding rock mass to stabilize the tunnel itself

1）Once a cave is made, the surrounding rock mass is forced by the secondary stress and it cause shear failure to fill the cave.

2）At the same time, the shear resistance of the rock mass is going to prevent the deformation.

3）If this cave is left as it is, the ground competence is getting lower and the cave will be finally disappeared.

4）If the shortfall of the shearing force is covered by some structure, the cave is effectively kept. 39

■ EFFECT OF SHOTCRETE

①Resistance by Adhesion with Rock Mass and Shearing Force Adhesion between shotcrete layer and rock mass disperses the external force around the mass rock, and shearing force reinforced by the shotcrete filled in cracks of the rock mass keeps rocks to be fallen down and develops a ground arch around the side wall. This is effective for hard rock with many cracks.

②Resistance by Compressive Stress due to Bending and Axial Force It is better to complete the ring of shotcrete layer as soon as possible to retain the surrounding rock mass as one member. The surrounding rock mass is kept at triaxial stress state by applying internal pressure to the surrounding rock mass to prevent deterioration of the round competence. This is effective for hard rock and sandy soil. 41

③Distribution of External Pressure It works as slab to distribute the earth pressure to the steel support and rock bolts.

④Reinforcement of Soft Layer It fills the unevenness of the rock mass and combines the stratum crossing over the soft layer to prevent the stress concentration and reinforce the soft layer.

⑤Covering It works as a cover to prevent weathering, leaking water and outflow of fine sand.

■ EFFECT OF ROCK BOLTS ①Sawing It works to fix the rocks loosened by the excavation to the stable rock mass. This is also effective against well cracked rock mass in combination with shotcrete layer. Sawing primary lining with rock mass makes same effect as above. ②Beam Forming The surrounding rock mass with layers acts as a built-up beam with layers separated by the bedding planes. However, if the rock bolts are applied, it acts as a composite beam with transferring the shearing stress at the bedding plane. 43

③Internal Pressure The force equivalent to tensile stress of the rock bolts which acts on the lining keeps the surrounding rock mass of biaxial stress state into triaxial stress state. This has same meaning as an increase of binding force (lateral pressure) in a compression test, and it works to prevent deteriorations of the ground competence and load- carrying capacity.

④Ground Arch The surrounding rock mass which is united and has load- carrying capacity enhanced due to the effect of internal pressure by the system rock bolts, is displaced into inner side and forms a ground arch. 45

⑤Rock Mass Improvement The shear resistance is increased by inserting rock bolts to the rock mass, and residual strength after yield of rock mass as well as load-carrying capacity is increased. This phenomenon shows that the properties of whole rock mass were improved by the rock bolts.

* To achieve the five effects above is subject to anchorage of the rock bolts and tight screwing of the nuts.

■ PURPOSE OF STEEL SUPPORT

①Early Stabilization of Excavation Face Since the steel support becomes support member at the same time of its placement, the supporting effect is displayed before specified strength of shotcrete and rock bolts is shown in case of sandy ground and cracked rock mass whose faces have short stand-up time. However, it needs to be careful that void between the rock mass and the steel support has to be filled by shotcrete as soon as the steel support is placed. 47

②Reinforcement of Shotcrete The shotcrete is easily transformed and has small strength because the modulus of deformation is small at the time of initial age. Therefore, according to the condition of rock mass, it is required to apply steel support united with shotcrete and strengthen stiffness & strength of the support.

③Fulcrum of Presupport In case of rock mass whose face is unstable, the steel support might be required to be placed as the fulcrum of forepiling or steel sheet piling used for stabilizing the face. 49

■ Idea of Final Lining

①Idea of decorative lining because it is placed after resolving the deformation of tunnel and confirming the stabilization ⇒ ×

②Idea of increasing safety factor considering uncertain elements, such as corrosion of the rock bolts and inhomogeneous geological features

③Idea of applying as supporting member for controlling the deformation and surface settlement in case unsymmetrical pressure, thin overburden and swelling rock are observed

50 ■ NATM Total Control System Control Center

Measurements of crown settlement Monitoring Camera and relative displacement 51 ■ NATM Total Control System

Laser marking for face

Measurement of section

■ NATM Total Control System

Laser marking for face Measurement of section 53

■ NATM Total Control System

Monitoring Camera

■ Environmental Control Measure

１ Dustproof net for construction yard 55 ■ Environmental Control Measure

２ Facility for washing tires

■ Environmental Control Measure

3 Turbid water treatment facility 57

■ Environmental Control Measure

４ Hybrid backhoe

■ Environmental Control Measure

５ Soundproofing concrete batching plant 59

■ Environmental Control Measure

６ Contrafan with silencer

■ Environmental Control Measure

７ Soundproof curtain for portal 61

■ Environmental Control Measure

８ Dustproof mask with electric fan

■ Environmental Control Measure

９ Dust precipitator 63

■ Environmental Control Measure

１０ Boots washer

■ Environmental Control Measure

11 Trash separation 3R 65

■ Safety Measure

１ Gate for height limit

■ Safety Measure

２ Automatic measure of oxygen and harmful gas 67

■ Safety Measure

３ Color lighting （Green：Refuge, Blue：Fire hydrant）

■ Safety Measure

４ Emergency phone 69

■ Safety Measure

５ Traffic signal

■ Safety Measure

６ Fire hydrant 71

■ Safety Measure

７ Sign by laser pointer

■ Safety Measure

８ Safety vest with LED 73

■ Safety Measure

９ Shotcrete for face

■ Safety Measure

１０ Proximity warning device 75

■ Rock Bolt Head Treatment

１．Protection mat

Concrete nail Protection mat Shotcrete Nut

Bolt Washer Protection mat (Felt)

Rockロックボルト頭部処理標準 Bolt Head Treatment Protection保護マット Mat

■ Rock Bolt Head Treatment

２．Protection cap

Protection保護キャップ Cap 77

■ Rock Bolt Head Treatment

3．Type of head treatment Protection cap Type Protection mat Type A Type B Type C

Material Felt HDPE High polymer Styrofoam

General Diagram

■ Storing Materials

1．Outside yard 79

■ Storing Materials

2．Inside (temporary storing)