Study on Economic Partnership Projects in Developing Countries in Fiscal Year 2017

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STUDY ON ECONOMIC PARTNERSHIP PROJECTS IN DEVELOPING COUNTRIES IN FISCAL YEAR 2017

STUDY ON YANGON INNER RING ROAD CONSTRUCTION PROJECT IN THE REPUBLIC OF THE UNION OF MYANMAR

Final Report

February 2018

Prepared for:

Ministry of Economy, Trade and Industry

Prepared by:

JFE Engineering Corporation

Oriental Consultants Global Co., Ltd.

Metropolitan Expressway Company Limited

Marubeni Corporation

Preface

This report is prepared by JFE engineering Corporation, Oriental Consultants Global Co. Ltd., Metropolitan Expressway Company Limited and Marubeni Corporation as the result of “Study on the Economic Partnership Projects in Developing Countries in Fiscal Year 2017” for the Ministry of Economy, Trade, and Industry.

The study presented here is titled “Study on YANGON INNER RING ROAD CONSTRUCTION PROJECT IN THE REPUBLIC OF THE UNION OF MYANMAR”. The project aims to construct 24km long motor way along with its O&M in Yangon, former capital city of Myanmar, by PPP scheme. As in other Asian major cities, in Yangon the number of vehicles has increased sharply with the rapid population increase. As a result, traffic congestion occurs through daytime although it only occurred in the morning and evening commuting time become a big social problem. This survey is to study the countermeasure for this urgent issue and contributes to the development of Yangon.

We hope this report will contribute to the realization of the project mentioned above and serve as reference for the related organizations and parties in Japan.

February 2018 JFE Engineering Corporation Oriental Consultants Global Co., Ltd. Metropolitan Expressway Company Limited Marubeni Corporation

Project Area Map

Source: Study Team by Internet Information

Table of Contents

Preface Project Area Map Table of Contents Table list Figure List Abbreviations

Page Executive Summary (1) Outline of the Project ...... ES-1 (2) Summary of Myanmar and Road Bridge Sector in Myanmar ...... ES-2 (3) Project Planning (Traffic, Highway, Bridge, Construction Planning and Cost Estimation) ...... ES-4 (4) Operation & Maintenance Plan ...... ES-19 (5) Economic and Financial Analysis ...... ES-21 (6) Study for on Project Implementation under PPP Scheme ...... ES-22

Chapter 1 Outline of the project 1-1 Background and necessity of the Project ...... 1-1 (1) Administrative organization of Yangon ...... 1-1 (2) Roads in Yangon ...... 1-1 (3) Road transportation of Yangon City ...... 1-4 (4) The Republic of the Union of Myanmar, a strategic urban development plan of greater Yangon ...... 1-4 (5) Present status and future prospects of the car numbers in Myanmar ...... 1-6 1-2 Outline of the project...... 1-7 1-3 Basic policy of contents for the Project ...... 1-8 (1) Highway Design ...... 1-8 (2) Cross Section ...... 1-8 (3) Location of Ramp ...... 1-8 (4) Ramp Type ...... 1-8 (5) Traffic Demand Forecast ...... 1-8 (6) Bridge Type ...... 1-8 (7) Cost Estimation ...... 1-9 (8) Operation and Maintenance ...... 1-9 (9) PPP Implementation Study ...... 1-9

Chapter 2 Overview of the Host Country and Sectors 2-1 Economic and financial conditions of Myanmar ...... 2-1 2-2 Overview of the project target sector ...... 2-3

(1) Road Conditions in Myanmar ...... 2-3 (2) Bridge Conditions in Myanmar...... 2-3 (3) Budget for Road and Bridge ...... 2-8 (4) Involvement of Private sector（BOT） ...... 2-9 2-3 Overview of the project target area ...... 2-12 (1) Geography of Yangon ...... 2-12 (2) Geology of Yangon ...... 2-12 (3) Climate of Yangon ...... 2-13 (4) Economy of Yangon ...... 2-13 (5) Ports of Yangon ...... 2-14 2-4 Implementation capabilities of the counterpart ...... 2-15

Chapter 3 Methodology 3-1 Contents of Survey ...... 3-1 3-2 Study system and methodology ...... 3-2 (1) Study system ...... 3-2 (2) Study methodology ...... 3-3 3-3 Study schedule...... 3-5 (1) Outline ...... 3-5 (2) Site survey...... 3-6 (3) Survey in Japan ...... 3-6

Chapter 4 Traffic Demand Forecast 4-1 Purpose of Study ...... 4-1 4-2 Basic Assumption and Consideration ...... 4-1 (1) Introduction ...... 4-1 (2) Socio-economic Framework ...... 4-1 (3) Traffic Demand Forecast for 2035 ...... 4-4 (4) Traffic Demand Forecast for 2025 ...... 4-5 4-3 Results of Traffic Demand Forecast ...... 4-6 (1) Introduction ...... 4-6 (2) Road Networks and Key Traffic Assignment Assumptions ...... 4-6 (3) Study Result on Most Appropriate Toll Rate ...... 4-9 (4) Result of Traffic Assignment at each Ramp ...... 4-11 (5) Study Result on Future Development Scenario ...... 4-13

Chapter 5 Road Planning 5-1 Road Design Standard ...... 5-1 (1) Design Standard ...... 5-1 (2) Design Speed ...... 5-1 (3) Geometric Design Criteria ...... 5-1

5-2 Cross Section ...... 5-2 5-3 Route Study ...... 5-2 (1) Alignment ...... 5-2 (2) Biginning Point ...... 5-29 5-4 Study for Interchage Location ...... 5-30 5-5 Study for Interchange Type ...... 5-31 (1) Interchange Ramp Type ...... 5-31 (2) Cross Section for At-grade Highway in the Interchange Section ...... 5-33

Chapter 6 Bridge Planning 6-1 Arrangement of Design Standars ...... 6-1 (1) Design Standard ...... 6-1 (2) Crossing Roads, Crossing Railway and Crossing River ...... 6-2 6-2 Study of Bridge Type at General Section ...... 6-3 (1) Study of Superstructure Type at General Section ...... 6-3 (2) Study of Substructure and Foundation Type at General Section ...... 6-7 6-3 Summary of Bridge Type Selection at General Section ...... 6-9 (1) Study of Superstructure Type a Special Section ...... 6-9 (2) Study of Substructure and Foundation Type at Special Section...... 6-11 6-3 Study of Bridge Type at Ramp Section ...... 6-12 (1) Study of Bridge Type at Ramp Section (Beginning Point) ...... 6-12 (2) Study of Bridge Type at Ramp Section (Intermediate and End Point) ...... 6-13

Chapter 7 Construction Planning and Cost Estimation 7-1 Construction Planning ...... 7-1 (1) General Construction Methodology ...... 7-1 (2) Bridge Construction Methodology...... 7-1 7-2 Proposal on Execution of Construction work and its Supervision System ...... 7-3 7-3 Cost Estimation ...... 7-6 (1) Summary of Structure Type ...... 7-6 (2) Setting of Unit Price for Cost Estimation ...... 7-6 (3) Other Conditions ...... 7-7 (4) Result of Cost Estimation ...... 7-7

Chapter 8 Operation & maintenance Plan 8-1 Survey Results on O&M in the Target Country ...... 8-1 (1) O&M Contracts for Roads under BOT scheme in Myanmar ...... 8-1 (2) Status of O&M of Roads under BOT Scheme in Myanmar ...... 8-1 (3) Toll Pricing of Expressway under BOT Scheme in Myanmar ...... 8-1 8-2 Study on Structure of O& M Companies ...... 8-2 8-3 Study on Means of Toll Collection ...... 8-2

(1) Toll Pricing ...... 8-2 (2) Toll Collecting Methods ...... 8-4 8-4 Study on Traffic Management ...... 8-4 8-5 Estimation of O&M Cost ...... 8-5

Chapter 9 Environment and Social Consideration 9-1 Outline of related Laws and Regulation in Myanmar ...... 9-1 (1) Legal and Administrative System of Myanmar ...... 9-1 (2) Related Laws and Regulations ...... 9-2 (3) Environmental Impact Assessment (EIA) Procedures (2015) ...... 9-3 (4) Criteria for EIA and IEE ...... 9-3 9-2 Scoping Results ...... 9-4 (1) Alternative Analysis ...... 9-4 (2) Scoping Results ...... 9-4 9-3 Outline of expected Involuntary Resettlement and Land Acquisition ...... 9-8 (1) Target Area ...... 9-8 (2) Expected Affected Unit ...... 9-9 (3) Expected Affected Persons and Households ...... 9-10 (4) Results of Evaluation ...... 9-11 (5) Agricultural land Price and Market Price in Yangon ...... 9-11 (6) Estimated Replacement Cost for Land, Structure and Income Loss 出 ...... 9-12 9-4 Required Actions for Implementation of the Project ...... 9-16 (1) Scope of Work (SOW) for Environmental Impact Assessment ...... 9-16 (2) Scope of Work (SOW) for Involuntary Resettlement and Land Acquisition ...... 9-18

Chapter 10 Economic and Financial Analysis 10-1 Project Cost Estimation ...... 10-1 10-2 Economic Analysis ...... 10-1 10-3 Financial Analysis ...... 10-1

Chapter 11 Effect on Energy Reduction 11-1 Introduction ...... 11-1 11-2 Energy Reduction ...... 11-1

Chapter 12 Study for project implementation under PPP scheme PPP 12-1 Examination of the risk under PPP scheme ...... 12-1 (1) Significance and necessity to adopt PPP ...... 12-1 (2) Examination of models for implementation of PPP projects ...... 12-1 (3) Risk analysis on road business ...... 12-3 12-2 Study for project implementation scheme under PPP ...... 12-7 (1) Recommended project model ...... 12-7

(2) Appropriate risk sharing between the government and the private investor to realize (1) ...... 12-7 12-3 Prospect of funding for the project ...... 12-9

Chapter 13 Planned Project Schedule 13-1 Contract packages ...... 13-1 13-2 Implementation schedule ...... 13-1 13-3 Risk of delay in project implementation ...... 13-2

Chapter 14 Technical Advantage for Japanese Contractor 14-1 Expected Scheme for involvement to the Project by Japanese Contractor ...... 14-1 14-2 Advantage of Japanese Contractor for execution of the Project (Technical and Financial) ...... 14-2 (1) Technical Advantage by Japanese Contracto ...... 14-2 (2) Financial Advantage by Japanese Contractor ...... 14-4 14-3 Necessary policy for acquiring of the Project by Japanese Contractor...... 14-5

Table List

Table1ES-1 Key Leading Indicators of Myanmar t ...... ES-2 Table1ES-2 Combination of Toll Rate for Year 2025 ...... ES-4 Table1ES-3 Combination of Toll Fee for Year 2035 ...... ES-5 Table1ES-4 Study Cases for Development Scenario Study ...... ES-8 Table1ES-5 Study Result on Different Development Scenario for 2025 ...... ES-10 Table1ES-6 Study Result on Different Development Scenario for 2035 ...... ES-10 Table1ES-7 Road Geometric Design Criteria ...... ES-11 Table1ES-8 Total Construction Period ...... ES-17 Table1ES-9 Total Project Cost...... ES-18 Table1ES-10 Annual Cost Required for O&M of YIRR ...... ES-20 Table1ES-11 Result of Economic Analysis ...... ES-21 Table1ES-12 Result of Financial Analysis ...... ES-21 Table1ES-13 Proposed risk allocation and items to be prescribed in the contract under Availability Payment model ...... ES-22 Table1-1 Automobile penetration rate of ASEN（2015） ...... 1-6 Table2-1 Key Leading Indicators of Myanmar ...... 2-1 Table2-2 Road Length by Road Class in Myanmar (as of 2017)長（2017 年） ...... 2-3 Table2-3 Bridge List (Length over 1,000 feet and constructed after 1988 till the end of March 2016) ...... 2-4 Table2-4 Bridges on Major River ...... 2-6 Table2-5 Outline of major bridges constructed in 2016 and 2017 ...... 2-7 Table2-6 Budget amount for road and bridge ...... 2-8 Table2-7 List of BOT project in Myanmar (as of 2013) ...... 2-9 Table3-1 General study schedule ...... 3-5 Table3-2 Site survey schedule ...... 3-6 Table4-1 Summary of Current and Forecast Population by Major Planning Areas ...... 4-1 Table4-2 GDP Growth Rates ...... 4-3 Table4-3 Summary of Key Traffic Growth Variables ...... 4-3 Table4-4 Summary of Current and Forecast O/D Person Trips by Mode of Travel ...... 4-4 Table4-5 Summary of Current and Forecast 2035 O/D Trips by Mode...... 4-5 Table4-6 Summary of Current and Forecast 2025 O/D Trips by Mode...... 4-5 Table4-7 Combination of Toll Rate for Year 2025...... 4-9 Table4-8 Combination of Toll Fee for Year 2035 ...... 4-10 Table4-9 Study Cases for Development Scenario Study ...... 4-13 Table4-10 Study Result on Different Development Scenario for 2025 ...... 4-15 Table4-11 Study Result on Different Development Scenario for 2035 ...... 4-15 Table5-1 Design Speed ...... 5-1 Table5-2 Road Geometric Design Criteria ...... 5-1 Table5-3 Interchanges (On/Off Ramps) of YIRR ...... 5-31 Table6-1 Unit Weight of Materials ...... 6-1

Table6-2 Crossing Objects of Relatively Large Scale ...... 6-3 Table6-3 Result of First Bridge Selection at General Section ...... 6-3 Table6-4 Result of Second Bridge Type Selection (1/2) (2/2) ...... 6-5 Table6-5 Result of superstructure type selection at special section ...... 6-10 Table6-6 Result of Bridge Type Selection at Ramp Section ...... 6-14 Table7-1 Total Construction Period ...... 7-1 Table7-2 Comparison of System of execution of the Construction Work and Supervision ...... 7-5 Table7-3 Summary of Structure Type ...... 7-6 Table7-4 Total Project Cost ...... 7-7 Table7-5 Detail of Construction Cost (BOQ) ...... 7-8 Table8-1 Summary of BOT Schemes in Myanmar ...... 8-1 Table8-2 Current State of O&M Business Executed by BOT Companies in Myanmar ...... 8-2 Table8-3 Toll Rate Table in Myanmar (by Vehicle Type Classification) ...... 8-4 Table8-4 Comparison of Toll Prices among Sections of Regular Roads and Bridges ...... 8-4 Table8-5 Framework and Scale of Road Administrators under BOT Scheme in Myanmar (Extract) ...... 8-5 Table8-6 Framework and Scale of Road Administrators under BOT Scheme (Extract) ...... 8-6 Table8-7 Features of Toll Road Pricing by Distance Category...... 8-8 Table8-8 Features of Toll Road Pricing by Vehicle Type Category ...... 8-8 Table8-9 Comparison of Number of Lanes in Tollgate According to Toll Collecting Methods ...... 8-9 Table8-10 Features of Toll Collecting Methods (General) ...... 8-9 Table8-11 Features of Toll Collecting Methods (Case studies in Japan) ...... 8-10 Table8-12 Annual Cost Required for O&M of YIRR ...... 8-12 Table9-1 Outline of the Related Laws and Regulation ...... 9-2 Table9-2 Criteria for IEE/EIA ...... 9-4 Table9-3 Project Alternative Assessmen ...... 9-4 Table9-4 Scoping Matrix ...... 9-5 Table9-5 Reasons for Scoping ...... 9-6 Table9-6 Expected PAUs at Ramp Area ...... 9-9 Table9-7 Expected PAUs at Except Areas ...... 9-9 Table9-8 Expected Project Affected Units at New Alignment Areas ...... 9-10 Table9-9 Expected Project Affected Households and Persons ...... 9-10 Table9-10 Agricultural Land Price ...... 9-11 Table9-11 Market Price in Yangon ...... 9-11 Table9-12 General Consideraion ...... 9-12 Table9-13 Amount of Affected Unit of each plan ...... 9-13 Table9-14 Estimate Value Affected Unit ...... 9-13 Table9-15 Estimated Compensation Amount (Ramp Area)...... 9-14 Table9-16 Estimated Compensation Amount (Except Ramp Area) ...... 9-14 Table9-17 Estimated Compensation Amount (New Alignment Area) ...... 9-15 Table9-18 Expected Total Compensation Amount ...... 9-15 Table9-19 Acquisition of the Baseline Data ...... 9-16

Table9-20 Baseline Survey and Analysis Methodology ...... 9-17 Table10-1 Result of Economic Analysis ...... 10-1 Table10-2 Result of Financial Analysis ...... 10-1 Table 11-1 Fuel Consumption of Vehicles for each Travel Speed ...... 11-1 Table 11-2 Energy Reduction by the Projec Implementation ...... 11-2 Table 12-1 Comparison of project implementation types ...... 12-2 Table 12-2 Major risk factors associated with road business ...... 12-4 Table 12-3 Proposed risk allocation and items to be prescribed in the contract under Availability Payment model ...... 12-7 Table 13-1 Assumed Project Implementation Schedule ...... 13-1 Table 13-2 Risks for delay in the project and countermeasures ...... 13-2

Figure List

FigureES-1 Alignment of the Project ...... ES-1 FigureES-2 Typical Cross Section ...... ES-1 FigureES-3 Diagram for Toll Fee Study Result for 2025 ...... ES-4 FigureES-4 Diagram for Toll Fee Study Result for 2035 ...... ES-5 FigureES-5 Traffic Assignment Result at each Ramp for 2025 ...... ES-6 FigureES-6 Traffic Assignment Result at each Ramp for 2035 ...... ES-7 FigureES-7 Road Network for “With YORR (East Pha1)” ...... ES-8 FigureES-8 Road Network for “YIRR Full Imple.” ...... ES-9 FigureES-9 Road Network for “Full Imple.” ...... ES-9 FigureES-10 Typical Cross Section of YIRR ...... ES-11 FigureES-11 Location Map of the YIRR Alignment ...... ES-12 FigureES-12 Interchanges (On/Off Ramps) of YIRR...... ES-13 FigureES-13 General View of PC-I Girder Bridge with T-shape Pier at General Section ...... ES-14 FigureES-14 General View of PC-I Girder Bridge with Rigid Frame Type of Pier at General Section ...... ES-14 FigureES-15 General View of Steel-I Girder Bridge with T-shape Pier at Special Section ...... ES-15 FigureES-16 General View of Steel Box Girder Bridge with Rigid Frame Pier made of Steel at Special Section ...... ES-15 FigureES-17 General View of PC-I Girder Bridge with Rigid Frame Type of Pier at Ramp Section ...... ES-16 FigureES-18 General View of Steel-I Girder Bridge with Rigid Frame Type of Pier at Ramp Section ...... ES-17 FigureES-19 Organizations Required for Managing Company of YIRR ...... ES-19 Figure1-1 Areas of Yangon Region and Yangon City ...... 1-2 Figure1-2 Road network of Yangon City ...... 1-3 Figure1-3 Yangon Inner Ring Road Alignment ...... 1-5 Figure1-4 Alignment of the Project ...... 1-7 Figure1-5 Typical Cross Section ...... 1-7 Figure2-1 Classification by Surface Type of Road under control of MOC (as of March 2016)...... 2-3 Figure2-2 Type of existing bridges constructed by MOC ...... 2-4 Figure2-3 Map of BOT Road Network ...... 2-11 Figure2-4 Geology of Yangon Region ...... 2-12 Figure2-5 Rainfall of Yangon ...... 2-13 Figure2-6 Industrial are of Yangon ...... 2-13 Figure2-7 Port of yangon ...... 2-14 Figure2-8 Organization of MOC ...... 2-15 Figure2-9 Organization of Department of Highway ...... 2-16 Figure2-10 Organization of Department of Bridge ...... 2-17 Figure3-1 Overall Flow Chart for the Survey ...... 3-1 Figure3-2 Study team organization and Work allocation ...... 3-2 Figure4-1 Study Area Future Land Use ...... 4-2 Figure4-2 Summary GRDP Growth 2016-35 ...... 4-3

Figure4-3 Traffic Model – 2016 Road Network ...... 4-6 Figure4-4 Traffic Model – 2016 Rail Network ...... 4-7 Figure4-5 Traffic Model – 2016 Parking Condition ...... 4-7 Figure4-6 Traffic Model – 2016 Network Upgrades ...... 4-7 Figure4-7 Speed Flow Relationships ...... 4-8 Figure4-8 Diagram for Toll Fee Study Result for 2025 ...... 4-9 Figure4-9 Diagram for Toll Fee Study Result for 2035 ...... 4-10 Figure4-10 Traffic Assignment Result at each Ramp for 2025 ...... 4-11 Figure4-11 Traffic Assignment Result at each Ramp for 2035 ...... 4-12 Figure4-12 Road Network for “With YORR (East Pha1)” ...... 4-13 Figure4-13 Road Network for “YIRR Full Imple.” ...... 4-14 Figure4-14 Road Network for “Full Imple.” ...... 4-14 Figure5-1 Typical Cross Section of YIRR ...... 5-2 Figure5-2 Location Map of the YIRR Alignment...... 5-3 Figure5-3 Plan of YIRR...... 5-4 Figure5-4 Alternatices for Beginning Point ...... 5-29 Figure5-5 Interchange (On/Off Ramps) of YIRR ...... 5-30 Figure5-6 Outer Interchange Ramp (Not Applied for YIRR) ...... 5-32 Figure5-7 Inner Interchange Ramp (Applied for YIRR) ...... 5-32 Figure5-8 Cross Section for Existing At-grade Highway ...... 5-33 Figure5-9 Cross Section for At-grade Highway under the Expressway ...... 5-33 Figure6-1 Seismic Acceleration on Ground Surface (475 year/times)475 年確率地表面加速度 ...... 6-2 Figure6-2 Cross Section of PC-I Girder Bridge at General Section ...... 6-6 Figure6-3 Cross Section of Substructure at General Section (T-shape Pier) ...... 6-7 Figure6-4 Cross Section of Substructure at General Section (Rigid Frame Type of Pier) ...... 6-7 Figure6-5 General View of PC-I Girder Bridge with T-shape Pier at General Section ...... 6-8 Figure6-6 General View of PC-I Girder Bridge with Rigid Frame Type of Pier at General Section ...... 6-9 Figure6-7 Cross Section of Superstructure at Special Section (Steel I-Girder) ...... 6-10 Figure6-8 Cross Section of Superstructure at Special Section (Steel Box Girder) ...... 6-10 Figure6-9 Bridge Type at Special Section (Steel I-Girder and T-shape Pier) ...... 6-11 Figure6-10 Bridge Type at Special Section (Steel Box Girder and Steel Portal Pier) ...... 6-11 Figure6-11 Ramp Location ...... 6-12 Figure6-12 Detail drawwings of Option 1 (PC-I Girder Bridge + RC Pier) ...... 6-15 Figure6-13 Detail Drawings of Option 2 (Steel-I Girder Bridge + RC Pier) ...... 6-16 Figure6-14 Detail Drawings of Option 3 (Steel-I Girder Bridge + Steel Pier) ...... 6-17 Figure6-15 General View of Option 1 at Ramp Section (PC-I Girder Bridge + RC Pier) ...... 6-18 Figure6-16 General View of Option 2 at Ramp Section (Steel-I Girder Bridge + RC Pier) ...... 6-19 Figure7-1 Transportation of Girder by Trailer ...... 7-2 Figure7-2 Girder Erection by Crawler Crane ...... 7-2 Figure7-3 Girder Erection by Back-feeding Method ...... 7-2 Figure7-4 Transportation of Girder by Trolley ...... 7-2

Figure7-5 System of execution of the Construction Work and Supervision ...... 7-3 Figure8-1 Toll Rate per Kilometer in Myanmar and Other Countries ...... 8-3 Figure8-2 Organizations Required for Managing Company of YIRR ...... 8-7 Figure9-1 Organization Chart of MONREC ...... 9-1 Figure9-2 Procedure of EIA ...... 9-3 Figure9-3 Location of Major Activities of the Project ...... 9-8 Figure14-1 Image of Rotary Penetration ...... 14-2 Figure14-2 Photograph of Rotary Penetration Steel Pile (Left: Installation Machine, Right: Tip of Rotary Penetration Steel Pile)...... 14-2 Figure14-3 Sketch and Photograph of PC Well ...... 14-3 Figure14-4 Sketch and Photograph of Steel Pipe Socket Connection Method ...... 14-3 Figure14-5 Composite Deck Slab ...... 14-4

List of Abbreviations

Abbreviations Official Names B/C Cost Benefit Ratio BOT Build Operation Transfer BTO Build Transfer Operation CM/GC Construction Manager/General Contractor EIA Environmental Impact Assessment EIRR Economic Internal rate of return FIRR Financial Internal Rate of Return FS Feasibility Study GDP Gross Domestic Product IEE Initial Environmental Examination IFC International Financed Corporation JICA Japan International Cooperation Agency JPY Japanese Yen MMK Myanmar Kyat MOC Ministry of Construction NPV Net Present Value O&M Operation and maintenance ODA Official Development Assistance ORR Outer Ring Road PCU Passenger Car Unit PPP Public Private Partnership SPC Special Purpose Company TTC Travel Time Cost US$ UＳDollar YCDC Yangon City Development Committee VOC Vehicle Operation Cost YUTRA Project for comprehensive urban transport plan of the greater Yangon

Executive Summary

(1) Outline of the Project

This Project is to construct YIRR East Section which is proposed by YUTRA funded by PPP scheme or BOT/BTO Scheme. Alignment of the Project is shown in Figure Es-1. Beginning point is intersection between Strand Street and Yar Zar Di Yit Street, and Ending point is at Mingalar Bus Terminal located at northern part of Yangon city. Total length of the Project is about 24.9 km. In order to avoid land acquisition, construction of viaduct along existing road is studied. Typical cross section is shown in Figure ES-2. Figure ES-1: Alignment of the Project

E. P.

B . P.

Source: YUTRA II Report added by Study Team Figure ES-2: Typical Cross Section

Unit: m Source: Study Team

ES-1

(2) Summary of Myanmar and Road Bridge Sector in Myanmar

1) Economy and financial status of Myanmar

Myanmar is a republic nation located in the west Indochina Peninsula in Southeast Asia. It faces the Bengal Bay in the Southwest, the Andaman Sea in the South, Thailand in the South East, Laos in the East, China in the North East and the North, India in the Northwest and Bangladesh in the West. The Burmese tribe accounts for 60% of the population of 51 million people and Burmese is the official language. Religion is mainly Buddhism (90%), other Christianity, Muslim, etc. The main indicators are as follows:

・ population：51,419,420 人（2014）

・ Area：676,578m2 （40th in the world）

・ Capital city：Naypyidaw

・ Government body: Presidential system, Republic

・ President：H.E. Mr. Htin Kyaw ・State Counsellor of Myanmar：Aung San Suu Kyi

・ Currency：Kyat（MMK）

Table ES-1: Key Leading Indicators of Myanmar Item 2014 2015 2016

Real GDP Growth Ratio (%) 7.99 7.29 6.3

Per capita GDP (US$) 1,275 1,148 1,269

Total GDP (billion US$) 65.6 59.5 69.3

Rate of increase in consumer price index (%) 5.47 9.69 6.96

Current account balance (US$ million) 1,897.3 2,493.8 2,011.7 （） Trade balance US$ million △1,872.4 △3,772.6 △3,717.0

Net financial income（US$ million） △ △ △ 1,309.5 4,358.1 4,382.2

Direct investment（US$ million） △ △ △ 4,343 7,776 11,118

Foreign exchange reserve（US$ million, End FY 2,012 3,806 4,619 basis） External debt(US$ million) 17,074 20,083 22,878

Policy interest rate (%) 10.00 10.00 10.00

Exchange Rate（vs. 1US$/MMK、Average） 984.35 1,162.62 1,234.87

Source: JETRO

ES-2

2) Overview of the project target sector

The total length of roads in Myanmar is approximately 142,000 km and MOC manages about 41,400 km (29.2 % of total). Paved ratio is about 64% of total and it has been improving year by year.

There are 514 bridges in Myanmar which length is over 54m (as of 2016). Many bridges in Myanmar are designed, constructed and maintained by MOC directly, while some roads are being maintained under BOT (Build-Operate-Transfer) scheme.

MOC has constructed many bridges by themselves. Several types of bridge including suspension bridge and cable stayed bridge can be designed and constructed by MOC. It can be considered that Japan's technical cooperation such as BETC Project has contributed not a little to bridge construction in Myanmar.

Some existing bridges have critical problem, such as deterioration because of their aging and insufficient structural capacity, and become a bottleneck in the road network.

Budget for construction and maintenance of the roads and bridges in Myanmar is allocated by the government based on the national annual budgetary plan. Total amount of actual budget for Year 2015-2016 was about 347 billion Kyat, which was comprised of road construction (44%), bridge construction (36%), and maintenance work (20%).

DOH and DOB prepare budget proposal for next fiscal year and submit it to MOC. MOC organizes proposals from each department and submit the budget request to Department of Finance in Ministry of Planning and Finance usually in November. After review by Ministry of Planning and Finance, the Parliament gives approval to MOC in February next year and amount of budget allocation is decided.

As for road and bridge maintenance budget, site engineers in each Special Unit confirm site condition and report to MOC Headquarters. Staff in Headquarters decides quantity for construction and maintenance based on the report from site offices and prepares the budget proposal. In the maintenance budget, “Routine maintenance”, “Periodic Maintenance”, “Special Maintenance”, “Disaster Restoration” and “Maintenance for Yangon-Mandalay Expressway” are included. For the decision of maintenance budget amount for next year, actual budget amount for previous year is taken into account.

Road improvement by private sector under BOT is widely executed in Myanmar. Most of the road and bridge construction has been implemented directly by MOC, so there are few cases of BOT. After the transition to democracy in March 2011, BOT road is underway and it is necessary to pay close attention to future trends. Currently, Yangon - Mandalay Expressway is under the direct control of MOC.

ES-3

(3) Project Planning (Traffic, Highway, Bridge, Construction

Planning and Cost Estimation)

1) Traffic Demand Forecast

a) Study Result on Most Appropriate Toll Rate

i) Introduction Traffic demand forecast analysis is done for Year 2025 and Year 2035. Therefore, most appropriate toll fee is studied for both Year 2025 and Year 2035. In addition, following conditions are considered. - Vehicle Type: Passenger Car and Truck - Toll Collection: Flat Toll Rate (detail explanation will be late Chapter)

ii) Result for Year 2025 Traffic Demand Forecast Analysis is done based on various combinations of toll fee. Result for Year 2025 is shown in Figure ES-3 and Table ES-2. Figure ES-3: Diagram for Toll Fee Study Result for 2025

Source: Study Team

Table ES-2：Combination of Toll Rate for Year 2025 Toll Rate [MMK] Weighed Revenue Total PCU per No. Passenger Truck Toll [1000 Judgement Day Car [MKK] MMK/Day] 1 600 1,800 94,425 618 57,831 2 1,200 1,800 71,461 1,215 85,456 Recommended 3 1,500 2,500 51,285 1,526 76,979 4 1,500 3,500 50,172 1,500 75,258

ES-4

5 2,000 3,000 36,220 2,025 72,186 6 2,300 5,200 29,316 2,300 67,427 7 4,000 8,600 5,995 4,000 23,980 Source: Study Team Based on study result, toll combination No.2 shows highest revenue, therefore, toll combination No. 2 is recommended to be applied for toll fee at Year 2025.

iii) Result for Year 2035 Result for Year 2035 is shown in Figure ES-4 and Table ES-4. Figure ES-4： Diagram for Toll Fee Study Result for 2035

Source: Study Team Table ES-3： Combination of Toll Fee for Year 2035 Toll Fee [MMK] Weighed Revenue Total PCU per No. Passenger Truck Toll [1000 Judgement Day Car [MKK] MMK/Day] 1 600 1,800 170,667 624 105,121 2 1,200 1,800 149,233 1,216 178,408 3 1,500 2,500 130,806 1,523 196,328 4 2,000 3,000 108,537 2,026 216,296 Recommended 5 2,300 5,200 94,663 2,300 217,725 6 2,500 3,500 83,820 2,529 208,126 7 3,000 4,000 72,972 3,006 218,506 8 4,000 8,600 54,875 4,000 219,500 Source: Study Team

Based on study result, highest revenue toll combination is No. 8. However, toll fee for toll combination No. 8 is rather high in consideration of increasing rate from Year 2025. According to current economic indexes in Myanmar, 6 % annual increasing rate for CPI is reasonable range, therefore, toll combination No. 4 which follows 6% annual increasing rate from toll fee in Year 2025 can be applicable. Revenue for toll combination No. 4 is about 98.5%

ES-5

compared with highest revenue. Therefore, toll combination No. 4 is recommended to be applied for toll fee at Year 2025. It is noted this recommendation is only for this pre-FS. Toll fee actually applied in future shall be decided based on actual annual increasing rate of CPI in Myanmar. iv) Result of Traffic Assignment at each Ramp ① Result for Year 2025 Traffic assignment result at each ramp is shown in Figure ES-5. It is noted, the most appropriate toll fee explained in previous section is applied. Figure ES-5： Traffic Assignment Result at each Ramp for 2025

Unit: PCU/Day Source: Study Team

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② Result for Year 2035 Traffic assignment result at each ramp is shown in Figure ES-6. It is noted, the most appropriate toll fee explained in previous section is applied.

Figure ES-6： Traffic Assignment Result at each Ramp for 2035

Unit: PCU/Day Source: Study Team

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b) Study Result on Future Development Scenario

i) Introduction Traffic assignment trend is studied based on different development scenario for urban expressway network in Yangon. Studied case and applied urban expressway network are shown in Table ES-4, Figure ES-7, Figure ES-8 and Figure ES-9.

Table ES-4：Study Cases for D evelopment Scenario Study

Case Road Network O/D

With YORR YIRR East Section + YORR East Section 2025 (East Pha1) Phase1 2035 YIRR Full YIRR Full Implementation + YORR East 2035 Imple. Section Phase1 with necessary connection road YIRR and YORRfull implementation with all Full Imple. 2035 connection road Source: Study Team

Figure ES-7： Road N etw ork for “W i th Y ORR (East Pha1)”

Note: Yellow Color Line shows applied Urban Expressway Network Source: YUTRA II Report added by Study Team

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Figure ES-8：Road N etwork for “Y IRR Full I mple.”

Note: Yellow Color Line shows applied Urban Expressway Network Source: YUTRA II Report added by Study Team

Figure ES-9： Road Network for “Full Imple.”

Note: Yellow Color Line shows applied Urban Expressway Network Source: YUTRA II Report added by Study Team

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ii) Result for Year 2025 Study result based on different development scenario for Year 2025 is shown in Table ES-5. Based on study result, there is no significant difference by development scenario.

Table ES-5： Study Result on Different Development Scenario for 2025 Vehicle Number per Day Revenue Case Name Passenger Car Truck [1000 Ratio MMK/Day] IRR East 68,569 2,892 85,456 1.00 Section With ORR 68,007 2,075 83,885 0.98 (East Pha1) Source: Study Team

iii) Result for Year 2035 Study result based on different development scenario for Year 2035 is shown in Table ES-6. Based on study result, there is no significant difference by development scenario.

Table ES-6： Study Result on Different Development Scenario for 2035 Vehicle Number per Day Revenue Case Name Passenger Car Truck [1000 Ratio MMK/Day] IRR East 103,984 4,553 216,296 1.00 Section With ORR 84,283 1,426 213,753 0.99 (East Pha1) IRR Full 78,604 297 197,144 0.91 Imple. Full Imple. 78,457 421 197,042 0.91 Source: Study Team

2) Road Planning

a) Design Standard YIRR (Eastern Section) is designed based on the Metropolitan Expressway Design Criteria in Japan. This criteria was prepared specially for Tokyo urban expressway network development, and is reliable with more than 50 years development experience.

b) Design Speed and Geometric Design Criteria 60km/h of design speed is applied for YIRR (Eastern Section), as the project is implemented in the CBD of urban area. Major road geometric design criteria in Metropolitan Expressway Design Criteria and adopted value for the Project are shown in Table ES-7.

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Table ES-7: Road Geometric Design Criteria Item Criteria Adopted Value Design Speed (km/h) 60 60 Min. Horizontal Curve Radius (m) 150 (120) 120 Min. Horizontal Curve Length (m) 100 >100 Max. Superelevation (%) 10 10 Min. Transition Curve Length (m) 50 >50 Stopping Sight Distance (m) 85 (75) >85 Max. Vertical Grade (%) 4 (8) 4 Crest 20 (14) >20 Min. K Value Sag 15 (10) >15 Min Vertical Curve Length (m) 50 >50 * ( ) : For special case such as land acquisition constraint Source: Metropolitan Expressway Design Criteria c) Cross Section Typical cross sections for main line and interchange ramp of the expressway are shown in Figure ES-10, which were determined in accordance with the Metropolitan Expressway Design Criteria.

Figure ES-10: Typical Cross Section of YIRR

< Main Line (1 Bridge for Both Directions) > < Main Line (2 Separate Bridges) >

< Interchange Ramp > Unit：m Source: Metropolitan Expressway Design Criteria

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d) Route Study Alignment of YIRR was determined through the discussion with MOC. YIRR runs above the center of existing roads such as Upper Pazundaung Road, Thanthumar Road and Thudhamma Road by viaduct Location map of the YIRR alignment is shown in Figure ES-11Figure .

Figure ES-11: Location Map of the YIRR Alignment

E.P.

YIRR Planned Expwy Planned Epwy (Tunnel) B.P.

Source: Study Team

e) Interchange Location Interchanges are located around the major arterial roads, so that much traffic from arterial roads can access to YIRR easily. Future junction (ramps between YIRR and another expressway) locations are also considered in the selection of interchange locations. Interchange locations, i.e. on ramp and off ramp locations, are shown in Figure ES-12.

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Figure ES-12: Interchanges (On/Off Ramps) of YIRR

Source: Study Team

3) Bridge Planning

a) Study of Bridge Type

i) Study of Bridge Type at General Section There are no control points at the general section. The bridge type selection at the general section was carried out and the following bridge types were selected in this section. Superstructure: PC-I Girder Bridge Substructure: T-shape Pier made of Concrete (if location of the median of YIRR coincides with the median of existing road) Rigid Frame Type of Pier made of Concrete (if location of the median of YIRR does not coincide with the median of existing road) Foundation: Bored Pile

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Figure ES-13: General View of PC-I Girder Bridge with T-shape Pier at General Section

18140 320 8250 1000 8250 320

7600 3000 7600 30000 1500 10500 1500 3000 1500 10500 1500 3000 7000 500 500 7000 3000 2000

1500 3750 3750 1500 10500 Source: Study Team

Figure ES-14: General View of PC-I Girder Bridge with Rigid Frame Type of Pier at General Section 18140 320 8250 1000 8250 320

2500 18500 2500

30000 1500 2500 500 17500 500 2500 1500 500 1000 7000 250 250 7000 1000 500 1000 2000 2000

1500 3750 1500 1500 3750 1500 6750 6750 Source: Study Team ii) Study of Bridge Type at Special Section There are some control points at special section. The bridge type selection at special section was carried out and the following bridge types were selected in this section. Superstructure: Steel-I Girder Bridge (span length: 40m to 50m) Steel Box Girder Bridge (span length: 50m to 70m) Substructure: T-shape Pier made of Concrete (if location of the median of YIRR coincides with the median of existing road)

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Rigid Frame Type of Pier made of Concrete (if location of the median of YIRR does not coincide with the median of existing road) Rigid Frame Type of Pier made of Steel (if the wide of rigid frame pier is applied) Foundation: Bored Pile

Figure ES-15: General View of Steel-I Girder Bridge with T-shape Pier at Special Section

18140 320 8250 1000 8250 320 2000 1500 1500

7600 3000 7600 18200 9100 6100

Source: Study Team

Figure ES-16: General View of Steel Box Girder Bridge with Rigid Frame Pier made of Steel at Special Section

18140 320 8250 1000 8250 320 2400 2500 2500

2500 21500 2500 10525 9995 8025 7495

Source: Study Team

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iii) Study of Bridge Type at Ramp Section There is1 ramp at beginning point and 8 ramps along the main line and at end point, to give a total number of 9 ramps.

① Study of Bridge Type at Beginning Point in Ramp Section The condition of beginning point in ramp section is same as the general section. Therefore the bridge type was selected same as the general section. Superstructure: PC-I Girder Bridge Substructure: T-shape Pier made of Concrete Foundation: Bored Pile ② Study of Bridge Type at Intermediate and End Point in Ramp Section The two bridge types were selected at intermediate and end point in ramp section. The actual construction conditions are different at the ramp location. For location at narrow construction area, Steel-I Girder Bridge is adopted and for location at large construction area, PC-I Girder Bridge is adopted. Superstructure: PC-I Girder Bridge/Steel-I Girder Bridge Substructure: Rigid Frame Type of Pier made of Concrete Foundation: Bored Pile

Figure ES-17: General View of PC-I Girder Bridge with Rigid Frame Type of Pier at Ramp Section 25350 320 8560 320 320 5310 320 320 8560 320 500 500

7175 2500 6000 2500 7175 30000 1000 8000 12000 8000 1000 1500 6000 500 2500 6000 2500 500 6000 1500 500 500

1500 3750 1500 1500 3750 1500 6750 6750 Source: Study Team

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Figure ES-18: General View of Steel-I Girder Bridge with Rigid Frame Type of Pier at Ramp Section 25350 320 8560 320 320 5310 320 320 8560 320 500 500

7175 2500 6000 2500 7175 30000 1000 8000 12000 8000 1000 1500 6000 500 2500 6000 2500 500 6000 1500 500 500

1500 3750 1500 1500 3750 1500 6750 6750

Source: Study Team b) Construction Planning Construction works will be geographically divided into around five contract packages and the total construction period is 3 years. It is assumed that land acquisition and relocation of existing utilities, street trees, etc. will be carried out by Myanmar side before start of constructions.

Table ES-8: Total Construction Period

Year 0 Year 1 Year 2 Year 3 Item Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Land Acquisition Relocation of Existing Utility, Trees Construction Start Preparation Foundation of Main Line Substructure of Main Line Fabrication of Superstructure of Main Line Erection of Superstructure of Main Line Foundation of Ramp Substructure of Ramp Fabrication of Superstructure of Ramp Erection of Superstructure of Ramp Bridge Surface Demobilization Source: Study Team

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c) Suggestion for Construction and Management System The construction and management system were suggested below 3 options and the study of detail for them is carried out in next stage. - ODA Loan Project System: the consultant carries out the detail design and contractor carries out the construction - CM/GC System: Contractor joins into the project from the detail design stage and construction work is carried out by Sub-contractor. - Design Build System: the contractor carries out both of the detail design and the construction

d) Cost Estimation The total project cost is shown in below tables.

Table ES-9: Total Project Cost Amount Item Remarks (USD) Construction Cost 800,109,713 Contingency for Physical 80,010,971 10% of Construction Cost Contingency for Price 80,010,971 10% of Construction Cost Escalation Detail Design & Supervision 56,007,680 7% of Construction Cost Total Construction Cost 1,016,139,336 TAX & VAT 50,806,967 5% of Total Construction Cost Total Project Cost 1,066,946,302 Source: Study Team

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(4) Operation & Maintenance Plan

This chapter studies necessary frameworks and organizations for the Operation and Maintenance (O&M) tasks, such as maintenance of road structure, traffic management and toll collection, which shall be assumed for the project scheme and financial program in this Project, taking into account situation of Myanmar and its neighboring countries.

1) Survey Results on O&M in Myanmar

Since the establishment of legislation for road development under BOT scheme in 1996, O&M contracts have been introduced in Myanmar. Currently application standards for foreign companies have been stipulated, which allow participation of foreign companies in this sector.

In 2016 ADB complied Myanmar Transportation Policy Notes and explained that the current toll pricing level is quite low as compared with other countries in highway toll and level of road development, and one of issues of road development and O&M level. Then they provide suggestions, which are recognized well among concerned parties of road sector in Myanmar, such as revision of toll rates not only for better road management but also for improvement of transport administration.

2) Study on Structure of O& M Companies

O&M companies should establish the following structure, which has sections not only for traffic control, O&M and toll collection, but also for administrative works including accounting, by reference to the cases in the countries of Southeast Asia, which have similar roads in structure and administrating length, and urban expressways in Japan. Figure ES-19: Organizations Required for Managing Company of YIRR

Source: Study Team

3) Pricing of toll road is generally determined by combination of Distance and Vehicle Type.

Since the target road is approx. 24km long and within the same economic zone, this Study employs flat rate with 2-vehicle-type classification (large/ regular size) on the ground that minimum land acquisition can reduce impact to local residents and construction cost, and improvement of handling capacity in toll gates can minimize congestion caused by vehicles waiting for toll collecting.

As MOC has not made its intension to introduce ETC system, future perspective is uncertain. This Study assumes that ETC should be introduced when road network will be expanded (including link with other road administrators) and/ or

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traffic volume will increase, therefore, taking into account the profitability of the Project (cost increase derived from development of ETC system) employs toll collecting in cash as well as other tollway projects in Myanmar.

Since traffic management in Myanmar is in the scope of work of the Police exclusively, neither road administrators nor BOT companies execute periodic traffic patrols and other tasks. Therefore, this Study considers traffic management as one of future issues along with weight-in-motion system and concerns over detaining vehicles in tollgates

4) Estimation of O&M Cost Since the main purpose of this Study is securing minimum cost for O&M in the future, annual O&M cost is estimated to secure administration fees for the SPC Company and expense for O&M tasks with the reference of the urban expressways in Southeast Asia and Japan:

Table ES-10: Annual Cost Required for O&M of YIRR

Item Annual Cost (million JPY) Manpower Cost Office Rent Toll Collection Approx. 1,300 Traffic Management O&M(Road and Structure) Source: Study Team

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(5) Economic and Financial Analysis

1) Economic Analysis The following shows EIRR, NPV and B/C calculated from benefits and economic costs. Since EIRR goes over 12%; the specified value of social discount rate, this Project can be feasible.

Table ES-11: Result of Economic Analysis EIRR 17.1% NPV(000,000USD) 1,615 B/C 3.14 Source: Study Team

2) Financial Analysis Result of financial analysis are as follows: The result indicates FIRR of 1.3%, which means that it is difficult to make this Project profitable by private sector alone.

Table ES-12: Result of Financial Analysis FIRR 1.3% Source: Study Team

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(6) Study for on Project Implementation under PPP Scheme

1) Study for project implementation scheme under PPP a) Recommended project model Based on the cash flow analysis as shown in Page ES-27, Financial Internal Rate of Return (FIRR) is not high enough compared to both the market interest rate of Myanmar. Thus, it is expected that this project is not feasible only by toll fee income, that is, Real Toll type under which the private investor bear the traffic demand /revenue risk like the Existing BOT is not applicable. In addition, it shall be noted that in order to procure project finance on non-recourse basis for this kind of project, lenders strongly request stability and predictability of the project cash flow.

This project is to construct about 24km long four-lane elevated road on the existing road and its construction cost is much higher than that for level roads at grade, although toll fee income is not enough to cover its construction cost on private business basis. On the other hand, traffic congestion in Yangon City is getting worse and, in view of the precedent of Tokyo and other large cities in developed countries, early urban expressway construction is an essential condition for the sound development. Considering these conditions, Study Team proposes a project model that aims to share the project cost between the government and the private sector and to manage this road project entirely from the design stage until operation & maintenance by the private sector by utilizing its knowledge and experience.

There are major three models under which the project cost and risk is shared between the government and the private investor, namely, Availability Payment, Minimum Revenue Guarantee and Viability Gap Funding model. Considering advantages and disadvantages of each type, Study Team propose Availability Payment model, which assures both the government and the private investor of stability and predictability of cash flow and enforce the private investor to provide disciplined, high standard service, ultimately resulting in realization of “Value for money”

b) Appropriate risk sharing between the government and the private investor to realize i) In order that the business model enables financial arrangement by SPC which will be mainly established by private investors and make this project feasible, Table ES-23 shows examples of items which should be stipulated in PPP contract while it is not stipulated in the existing BOT contract, and how each risk items should be shared or properly allocated between the government and the private investor, by taking the risk classification and points at issue of the existing BOT contract into account. As mentioned hereafter, it is essential to define right and obligation of the parties and establish appropriate risk-shared contract scheme in order to procure external funds.

Table ES-13: Proposed risk allocation and items to be prescribed in the contract under Availability Payment model Item Details Financing If there is any fluctuation of base interest rate at the time of the selection of preferred bidder and finance close, it shall be borne by the government. Inflation Given the project continues in long term, there should be a mechanism to adjust Service Payment to be in line with increase of operation & maintenance cost during the contract period Foreign exchange Service Payment to be paid in foreign currency (JPY or USD) so that volatility of

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profit caused by foreign exchange is minimized Traffic volume and toll The government to takes/enjoys revenue upside/downside caused by fluctuation of revision traffic volume and toll revision by adopting Availability Payment based scheme. Insurance The government to take risk of increase in insurance cost at the time of renewal in case the increase is caused by change of market condition Extension of time and Concrete judgement and assessment process associated with design change and change in cost cost increase should be stipulated in a contract Default clause Process associated with cure period and default recognition should be stipulated in a contract Change in law and tax Indemnity/compensation by the government in case there is material impact on the rule profitability of the project due to change in law (including tax ruling) should be stipulated in a contract Level of requirement Major key performance indicators (such as deepness of rutting and roughness of during operation & the surface) should be stipulated in contract to establish Service Payment maintenance period and at adjustment mechanism and handback requirement clearly the time of asset hand back Government guarantee The government should provide the private investor with a guarantee associated with fulfillment of the contract obligation such as securing Service Payment Termination Payment Calculation process and method for termination payment in case that termination is caused by Force Majeure and breach by the parties etc. should be stipulated in a contract Source：Study team

2) Prospect of funding for the project a) Assumptions of funding condition Assuming that the project will be implemented under Availability Payment model as mentioned in 12-2, Study team examined the possibility and conditions of funding for materialization of the project, through interviews with several financial institutions such as Multilateral Development Banks and private banks. It is concluded that, on condition that the project is implemented through assured contractual structure with appropriate risk allocation, they have certain appetite for financing thus certain amount of debt can be procured.

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 Counterparty of the contract on the government side shall be the acceptable, and the government to take political risk (such as change in law including tax regime)  (in case of private financial institutions) in order to minimize repayment risk, debt portion shall be well guaranteed and/or insured.

Taking the above points into account, Study team analyzed the cash flow led by the following assumptions.  Debt/ Equity ratio D:E is assumed to be 8:2 based on interviews through several financial institutions  Debt conditions Debt conditions are studies based on the information from JICA, IFC, ADB and one of major Japanese commercial banks  Return of equity Assumed EIRR to be 15%, considering that that the size of the project will be huge enough and term to be long, involving the investors with design, construction and operation & maintenance. Investors are assumed to be Japanese private firms and funds (public and private), however, MOC itself and/or private investors of Myanmar are also expected.  Project period 30 years including construction period (4 years). Refinancing is not considered given debt are repaid within the initial tenor (20 years including 5years grace period )  Insurance/ Guarantee Appropriate insurance premium / guarantee fee for MIGA/NEXI is taken into account both for debt and equity.  Refer to Table ES-18 for other conditions/assumptions  Availability Payment Based on the above assumptions, amount of annual Service Payment (denominated in JPY) which shall be paid by the government is calculated.

In terms of the project scheme, it would be feasible conceptually, however, given the size of CAPEX required for the project, it would be difficult to procure all only by debt and equity under PPP scheme. Further, it is also deemed that the amount of the government expenditure as required for the annual Service Payment would be quite huge. Considering the above, Study team proposes to reduce the scope of the project originally contemplated under PPP, in order that the project become more feasible and bankable. Namely, it is recommended that the part of construction of the road to be implemented as public works utilizing Yen Loan (for which cost of finance much lower) so that the total CAPEX can be reduced. Then, construction of the remaining part as well as operation & maintenance for the road entirely (including proposed Yen Loan part) to be implemented under PPP scheme. This proposal is intended to set up a project scheme in order both to minimize the government expenditure in a long-term basis and to motivate private sector to participate in the project.

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Chapter 1 Outline of the Project

1-1 Background and necessity of the Project

Yangon City is the former capital of Myanmar and the largest city in Myanmar with a population of about 5.7 million (as of 2013). And it is the center of economic activity of the country. In the city there are many country - level transportation facilities such as Yangon Port, Yangon International Airport, Yangon Central Station, Highway Bus Terminal, Highway Truck Terminal and Yangon - Mandalay Expressway so that it works as the country 's transportation hab. For this reason, as in other Asian major cities, the population of the Yangon metropolitan area has increased rapidly with an extension rate of about 2.6% per year in recent years. This study is to examine the project feasibility for construction, operation and maintenance of the urban motor toll road in this city under PPP scheme and hereunder the situation of road traffic in Yangon City as the background and necessity for the study is explained.

(1) Administrative organization of Yangon The Myanmar Constitution specifies to divide the nation into seven regions, seven states and federal direct jurisdiction area and the Yangon Region is under the jurisdiction of the Yangon Regional Government (YRG). And administrative services in Yangon City are provided by the Yangon City Development Committee (YCDC), a development committee specified by "City of Yangon Development Law". There are nine regional government ministers appointed in YRG, one of whom is Mayor of Yangon City and is the head of YCDC. Matters relating to both YRG and Yangon City are discussed at the regional government cabinet meeting. Refer to Figure 1-1 for the areas of Yangon Region and Yangon City.

(2) Roads in Yangon Road transportation is a major transportation mode of Yangon City and it bears most of its passenger traffic. Yangon’s road network within the central business district is a grid-like street constructed in the UK colonial period, but the other area have radial pattern and connection of the East and West areas is weak. And all the major radiating roads are in contact with the central business district located in the south of the city and this urban structure and road network are the main cause of traffic congestion. As for jurisdiction for transportation mode YCDC is responsible for the roads in Yangon city but the Ministry of Construction (MOC) is in charge of bridges that cross the Yangon River, Bago River and Pazundaung River. And the bridges over the railway are under the responsibility of the Ministry of Railways and Transport Myanmar National Railways. Refer to Figure 1-2 for the road network of Yangon city.

1-1

Figure 1-1 Areas of Yangon Region and Yangon City

Source: Study Team makes from internet

1-2

Figure 1-2 Road network of Yangon City

Source: JICA Final report I of The Republic of the Union of Myanmar, a strategic urban development plan of greater Yangon

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(3) Road transportation of Yangon City After transfer to civilian control in 2011, the Myanmar government allowed to replace used cars that have been registered for a long time, and relaxed various car import restrictions such as to lower the import tax on passenger cars of 2,000 cc or less. And importation of the popular Japanese used cars has increased rapidly since in May 2012 to import used cars registered after 2007 and to import right hand drive cars ware allowed. As a result, the number of passenger vehicles owned has increased from 263,000 in 2011 to 770,000 in January 2017, among which the registered number of passenger cars in the Yangon Region accounts for two thirds of Myanmar. For this reason, in Yangon City, traffic jams that were hardly seen during the military government period have expanded from the commuting time in the morning and evening to the through daytime at present and it is becoming a serious problem. In response, the Myanmar government restricted the city trucking of the container truck to the nighttime in 2016. And to reduce the importation of used cars from January 2017 to import left hand drive cars only manufactured after 2015 is allowed. In addition, to increase the road capacity along with the improvement of the main trunk road, flyover construction at the major intersections of the city was implemented started from the Sheegondine intersection but it has not reached a drastic solution and serious congestion has still occurring.

(4) The Republic of the Union of Myanmar, a strategic urban development plan of greater Yangon The Republic of the Union of Myanmar, a strategic urban development plan of greater Yangon is a urban development plan conducted by JICA in 2013 based on the agreement with the Myanmar Government to achieve such a future vision as to establish a safe, excellent and fair transportation system and sustainable and efficient public transportation system for the sake of securing mobility and accessibility to urban services to the people and society. This master plan is prepared based on the assumption that the population of the Yangon metropolitan area will be 9.7 million in 2035, the vehicle holding house rate will rise from 12% to 32% and the traffic demand will be 1.8 times the year 2013 and proposed following eight strategies is necessary to achieve the future vision: 1) Promotion of social understanding on urban transport problems and issues 2) Efficient management of urban growth and development 3) Development and utilization of appealing public transport 4) Efficient traffic control and management 5) Effective traffic demand management (TDM: Transportation Demand Management) 6) Comprehensive development of traffic space and environment 7) Improvement of traffic safety 8) Enhancement of traffic sector management ability In addition, such three policies as road improvement, public transportation improvement and strengthening of traffic management are set up and planned separately for short term (until 2018), middle term (2018 to 2025) and long term (2025 to 2035). And in order to improve existing road network utilization improvement of traffic control system, maintenance of bus rapid transportation system (BRT: network of rapid transit network), development of parking lot, improvement of existing railway (2 sections, total 49.3 km) are proposed. And as the mid-term plan, construction of Yangon Inner Ring Road which is the urban vehicle only road is proposed along with the construction of new trunk road, the improvement of the existing railway, the construction of the new urban railway (North-South Line, 21.8 kilometers). In other words, this study to construct the urban motor toll road based on the strategic urban development plan of greater Yangon 1-4

Figure 1-3 Yangon Inner Ring Road Alignment

Source: JICA Final report II of The Republic of the Union of Myanmar, a strategic urban development plan of greater Yangon

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(5) Present status and future prospects of the car numbers in Myanmar The annual average real GDP growth rate of Myanmar from 2012 to 2016 is 7.5%, and this growth rate is higher compared with 6.3% in the previous 5 years (FY 2007 - 2011). And in 2016 the World Bank predicted that the next three years' economic growth rate would expand to 7.1% since private consumption and corporate capital investment increase due to the declining inflation rate along with the increase of public investment such as infrastructure development. However, as shown in Table 1 1, it still takes time to reach GDP per capita of 3,000 dollars, which is generally said to start motorization.

Table 1-1: Automobile penetration rate of ASEN（2015 ） Country Population GDP per capita Automobile （Thousand）（US$） penetration rate （No./Thousand） Myanmar 53,897 1,161 12.5 Laos 6,802 1,818 41,7 Cambodia 15,578 1,159 32.9 Thai 67,939 5,815 233.2 Indonesia 257,564 3,346 82.5 Vietnam 93,448 2,111 22.3 Philippines 100,699 2,904 35.3 Source：Study Team based on the report by Mizuho bank

On the other hand in 2014 the Asian Development Bank (ADB) submitted the report in which it said that the maximum growth rate of GDP could be 9.5% per year and, as a result, per capita GDP would reach $ 5,000 in 2030 subject to progress of reform and infrastructure development and, etc. In addition, East Asia such as China and Thailand is the region where urbanization has been advancing most rapidly in the world through improvement of productivity and expansion of consumer markets and more development is expected in the future by economic globalization based on decrease of communication and transportation costs, development of information and communication technology. And it can be thought that Yangon also falls on this tide, and the development of urban transportation infrastructure in Yangon is an urgent issue not only for Yangon but also for the development of Myanmar.

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1-2 Outline of the Project

This Project is to construct YIRR East Section which is proposed by YUTRA funded by PPP scheme or BOT/BTO Scheme. Alignment of the Project is shown in Figure 1-4. Beginning point is intersection between Strand Street and Yar Zar Di Yit Street, and Ending point is at Mingalar Bus Terminal located at northern part of Yangon city. Total length of the Project is about 24.9 km. In order to avoid land acquisition, construction of viaduct along existing road is studied. Typical cross section is shown in Figure 1.2. Figure 1-4: Alignment of the Project

E. P.

B . P.

Source: YUTRA II Report added by Study Team Figure 1-5: Typical Cross Section

Unit: m Source: Study Team

1-7

1-3 Basic policy of contents for the Project

In order to decide contents of the Project, following basic policies are referred. Basic policies are decided based on discussion with MOC, counterpart of the Project. Summary of basic policies are shown as bellows;

(1) Highway Design Since there is no specification related to urban express in MOC Road Design Standard, Metropolitan Expressway Design Criteria is applied.

(2) Cross Section As mentioned in previous section, since Metropolitan Expressway Design Criteria is applied for the Project, same cross section as Tokyo Metropolitan Expressway is applied.

(3) Location of Ramp Ramp location is decided in consideration of junction location for future urban expressway network which was proposed in YUTRA and important route in existing road network. As a result of study, 7 number of ramp (On/Off ramp) is decided in addition to ramp for Beginning point and Ending point.

(4) Ramp Type Based on discussion result with MOC, it is required to propose ramp type which can reduce land acquisition area as much as possible, in consideration with difficulty of land acquisition. As a result of study, ramp type which On/Off ramps are connected to inner lane (passing lane) is proposed. This ram type is applied in Tokyo Metropolitan Expressway (Shinjuku-line, Shibuya-line and etc.).

(5) Traffic Demand Forecast Traffic demand forecast is done in accordance with road network and O-D table which were established by YUTRA. Following issues are focused in this study.

- To study toll rate can generate highest revenue. - To study variation of traffic volume due to different development scenario for future urban expressway network. Regarding to toll road collecting, it is proposed to by cash in consideration of consistency with current toll road and implementation status of future urban expressway network. Regarding to toll road pricing, since there is restriction to install toll collection booth, due to restriction of land usage, it is recommended to apply easiest method. Thus, flat rate is recommended to be applied.

(6) Bridge Type Since construction work will be done along existing road, bridge type is studied for following 3 sections.

- Standard Section: most economical bride type is selected.

1-8

- Special Section: This is applied at intersection and steep curve section. Since superstructure type which has long span and steep curve needs to be selected, bridge type which has economical and easy construction (restrict to existing traffic) is selected. - Ramp Secion: Due to restriction of land usage, it is required to apply very complex structure. Therefore, bridge type which has easy construction is selected.

(7) Cost Estimation Cost estimation is executed based on quotation collected from contractors in Myanmar and in Vietnam as third country contractor. Quotations are analyzed, and quotations which are extremely expensive or cheap are removed. After removing such quotations, average of quotations are applied for cost estimation.

(8) Operation and Maintenance Upon confirmation of the BOT scheme and the O&M method (especially the toll collection method) in Myanmar by interview and on-site survey to MOC and BOT road management company, examination of toll collection method and operation cost estimate is conducted taking the characteristics of this project into consideration.

(9) PPP Implementation Study FIRR of this project is calculated by integrating various necessary costs required for road O&M against the toll revenue forecast derived from traffic demand forecast. As a result, it was found that this project is not commercially feasible only by the toll revenue. Thus examination of the financial assistance by MOC, especially to introduce Availability Payment is studied.

1-9

Chapter 2 Overview of the Host Country and Sectors

2-1 Economic and financial conditions of Myanmar

・ population：51,419,420 人（2014）

・ Area：676,578m2 （40th in the world）

・ Capital city：Naypyidaw

・ Government body: Presidential system, Republic

・ President：H.E. Mr. Htin Kyaw ・State Counsellor of Myanmar：Aung San Suu Kyi

・ Currency：Kyat（MMK）

Table 2-1: Key Leading Indicators of Myanmar Item 2014 2015 2016

Real GDP Growth Ratio (%) 7.99 7.29 6.3

Per capita GDP (US$) 1,275 1,148 1,269

Total GDP (billion US$) 65.6 59.5 69.3

Rate of increase in consumer price index (%) 5.47 9.69 6.96

Current account balance (US$ million) 1,897.3 2,493.8 2,011.7 （） Trade balance US$ million △1,872.4 △3,772.6 △3,717.0

Net financial income（US$ million） △ △ △ 1,309.5 4,358.1 4,382.2

Direct investment（US$ million） △ △ △ 4,343 7,776 11,118

Foreign exchange reserve（US$ million, End FY 2,012 3,806 4,619 basis） External debt(US$ million) 17,074 20,083 22,878

Policy interest rate (%) 10.00 10.00 10.00

Exchange Rate（vs. 1US$/MMK、Average） 984.35 1,162.62 1,234.87

Source: JETRO

2-1 On November 8, 2015, the National League for Democracy (NLD) led by Aung San Suu Kyi won at the first general election held after the establishment of the civilian government in 2011. And a new government was established in March 2016 under the presidency of H.E. Mr. Htin Kyaw while Aung San Suu Kyi was concurrently serving as a State Counsellor of Myanmar, a foreign minister and a presidential minister to hold the power of the government.

Since the establishment of the civilian government in 2011, economic sanctions by Western countries against the military regime ware relaxed and their economic advance became active with the call of “the last frontier in Asia”. Furthermore, after inauguration of the NLD government mentioned above, the United States who imposed the economic sanctions at last relaxed them in October 2016 so that it become possible for American companies to be in Myanmar. Amid such a tailwind, Myanmar economy has achieved exceeding 7% high growth for 4 consecutive years from 2012, and every international economic institution expect high growth rate of around 7 to 8% will continue until 2018.

However, in recent years, the adverse effects accompanying economic growth are gradually emerging. Expansion of deficit in trade balance occurs due to increasing imports of goods, machinery, materials etc. accompanying the growth of various industries along with the decline of natural gas which is the main export commodities of the country. As a result the current account is in deficit and as for the fiscal situation income can not keep up with the increasing expenditure. Furthermore, deterioration of living environment, such as traffic congestion, due to concentration to Yangon, the center of the economy, has become serious. While receiving support and advice from international organizations, the Myanmar Government is trying to respond by establishing various financial and economic systems. However, there is still a possibility of economic slow down owing to the risks such as the deceleration of the global economy, international criticism to the response to the Rohingya problem in the Bangladesh border area in addition to existing minorities problem.

In 2015, the consumer price inflation rate exceeded 9% due to the rise in food prices caused by flood damage but it has been around 5 to 6% for the subsequent years. And similar trend is expected subject to no sudden factors in the future. The main cause of the continuous current account deficit since 2011 is natural gas price decline which accounts for about 40% of Myanmar exports in addition to the surge in imports due to relaxation of import restrictions. As a result the trade deficit is also increasing although the inflow of foreign capital, most of them are the foreign direct investment, continues. Since the raise the natural gas price is not expected it takes time to develop the export industry, it is considered difficult to resolve the trade deficit within a short period.

Regarding fiscal balance, both expenditure and income are growing according to the national growth. Income is always below expenditure, and the IMF expects that its difference will not be significantly minimized for the time being. Current Myanmar tax laws and tax revenue systems are not sufficient and in order to increase tax revenue their improvement and/or revision is required.

It is expected that foreign currency reserve will be secured and by increasing foreign direct investment from overseas due to the effects of government measures, etc. and no serious shortage will occur. MMK was a dollar peg fixed exchange rate system until March 2012 but from April it changed to the floating exchange rate system. Although tax revenue, finance and exchange control system of the Myanmar government and its central bank is still in the developing stage, it is progressing steadily with the guidance of international donor agencies such as World Bank and IMF. Although Myanmar economy and finance is still developing, Japan, China, Europe and the United States are focusing on it as the "Last Frontier of Asia" markets due to the complete elimination of US economic sanctions. In order to maintain this trend it is required for the current NLD government to establish a strong domestic system and to deals well with internal affairs such as military and minorities.

2-2

2-2 Overview of the project target sector

(1) Road Condition in Myanmar

The total length of roads in Myanmar is approximately 142,000 km and MOC manages about 41,400 km (29.2 % of total). Road length by road class in Myanmar is summarized in Table 2-2. And classification by surface type of road under control of MOC is shown in Figure 2-1. Paved ratio is about 64% of total and it has been improving year by year.

Table 2-2：Road Length by Road Class in Myanmar (as of 2017) Road Class Length Percent(%) Responsible Authority (km) Expressways 589 0.4 MOC National Highways 19,787 14.0 MOC Regional and State 21,037 14.8 MOC roads Major city roads and 22,280 15.7 City Development Committees other roads Village and boundary 78,057 55.1 Ministry of Livestock, Fisheries, and Rural area roads Development Total 141,750 100 Source: MOC

Figure 2-1： Classification by Surface Type of Road under control of MOC (as of March 2016)

Source: MOC

(2) Bridge condition in Myanmar

Financial and technical support for bridge construction in Myanmar began with “Bridge Engineering

2-3 Training Center Project” (BETC Project) by JICA, which was implemented from 1969 to 1975. This project contributed a lot for the capacity development of Public Works (PW) staff and increased the number of bridge engineers in Myanmar. During the period of economic sanctions on Myanmar, several bridges, including the portable Bailey bridges, were constructed with the support of China and India.

MOC has constructed many bridges by themselves. Type of existing bridges constructed by MOC is summarized in Figure 2-2. Several types of bridge including suspension bridge and cable stayed bridge can be designed and constructed by MOC. It can be considered that Japan's technical cooperation such as BETC Project has contributed not a little to bridge construction in Myanmar.

Some existing bridges have critical problem, such as deterioration because of their aging and insufficient structural capacity, and become a bottleneck in the road network. Figure 2-2： Type of existing bridges constructed by MOC

Source：MOC

Bridges which length are over 1,000 feet and constructed after 1988 till the end of March 2016 are listed in Table 2-2.

Table2-3： Bridge List (Length over 1,000 feet and constructed after 1988 till the end of March 2016) No Name State or Division Length Type of Bridge Completed . (feet) Date 1 Ngawon Bridge Ayeyarwady, Yekyi 1,164 Cable Stay + box 12.9.1991 grider 2 Thanlyinn Yangon, Thanlyin 7,056 Steel Truss 31.7.1993 3 Bayintnaung Yangon, Mayangon 1,641 Steel Truss 23.7.1994 4 Myaungmya Ayeyarwady, 1,270 Bailey 18.9.1996 Myaungmya 5 Newtamin (Salin) Magway 1,200 Bailey 31.3.1997 6 Thanlwin (Hpaan) Kayin, Hpaan 2,252 Steel Truss 3.8.1997 7 Nawaday Bago, Pyi 4,183 Steel Truss 18.9.1997 8 Laputta (Pinlallay) Ayeyarwady, 1,300 Bailey 3.1.1998 Myaungmya

2-4 No Name State or Division Length Type of Bridge Completed . (feet) Date 9 Maubin Ayeyarwady, Maubin 2,362 Steel Truss 10.2.1998 10 Attaran Mon, Mawlamyine 1,420 Cable Stay 26.3.1998 11 Mone Chaung Magway, Pwint Phyu 1,300 Bailey 15.4.1998 12 Balaminhtin Kachin, Myitkyina 2,688 Steel Truss 14.11.1998 13 Gyaing (Zarthapyin) Kayin, Hpaan 2,900 Cable suspension 24.3.1999 14 Myitmakha Bago, Lapatan 1,520 PC 3.5.1999 15 Gyaing (Kawkaraik) Kayin, Kawkaraik 1,200 Baily suspension 22.5.1999 16 Yaw Chaung Rakhine, Myaypon 1,100 Bailey 14.7.1999 17 Sinphyushin Sagaing, Chaungoo 4,957 Steel Truss 18.9.1999 18 Bomyathtun Ayeyarwady, 8,544 Steel Truss 15.11.1999 Nyaungdon 19 Yarmaung Rakhine, MyaukOo 1,300 Bailey 15.12.1999 20 Kispanady Rakhine, Kyauktaw 2,513 Steel Truss 2.1.2000 21 Min Chaung Rakhine, Sittwe 2,003 Steel Truss 5.2.2000 22 Hlaing River Yangon, Mhawbi 1,940 RCC 26.3.2000 23 Maharbadula Yangon, Pazuntaung 3,643 Cable Stay 12.7.2000 24 Aungzaya Yangon, Insein 3,786 Cable Stay 25.8.2000 25 Bawlel river Yangon, Htantapin 1,940 RCC 17.11.2000 (Yaypawthaung) 26 Taninthari Taninthari, Taninthari 1,360 Bailey 12.11.2000 27 Hlaing river Yangon, Shwepyithar 3,415 Steel Truss 2.1.2001 28 Gonnyintan Ayeyarwady, 1,940 RCC 9.2.2001 Kyaiklat 29 Anawyathar Magway, Chauk 5,192 Steel Truss 4.4.2001 30 Shwelaung Ayeyarwady 1,900 Bailey 21.3.2002 (Shwelaung) 31 Ayeyarwady Magway, Magway 8,989 Steel truss 24.11.2002 (Magway) (tension)+RCC 32 Wakema Ayeyarwady, 3,020 Bailey+RCC 5.1.2003 Wakema 33 Sittaung (Shwekyin – Bago, Shwekyin 1,500 PCC+RCC 11.2.2003 Maduak) 34 Shweli Sagaing, Katha 2,330 PCC+RCC 9.3.2003 35 Daydaye Ayeyarwady, 4,088.3 PCC+RCC 23.3.2003 Daydaye 36 Chindwin (Monywa) Sagaing, Monywa 4,730.2 Steel Truss + RCC 7.4.2003 37 Darka Ayeyarwady, Darka 1,400 RCC 6.7.2003 38 Kwalku-Kyaukphya Taninthari, Myeik 3,612 Steel Truss + RCC 26.10.2003 39 Myitthar (Kalewa) Sagaing, Kalewa 1,320 Cable suspension 12.6.2004 40 Lonetawpauk Rakhine, Yanbyal 1,154.5 Steel Truss 25.10.2004 41 Pathein Ayeyarwady, Pathein 2,140 Cable Suspension 22.11.2004 42 Thanlwin Mon, Mawlamyine 11,575 Steel Truss, PCC+ 5.2.2005 (Mawlamyine) RCC 43 Panhlaing Yangon, 1,940 PCC+RCC 22.10.2005 Hlaingtharyar 44 Manpawady Ayeyarwady, 1,260 Bailey+RCC 25.5.2006 (Myinkaseik) Myaungmya 45 Minkyaung Chaung Rakhine, Yanbyal 2,704.2 Steel Truss 17.4.2006 46 Twante Yangon, Twante 3,750 Cable Stay+RCC 25.5.2006 47 No.1 Pauk Bridge Magway, Pauk 1,380 Bailey 30.6.2006 (Ohntaw) Expansion 48 No.2 Pauk Bridge Magway, Pauk 1,390 Bailey 31.7.2006 (Yepyar) Expansion 49 Pyapon Ayeyarwady, Pyapon 3,931.7 Steel Truss+Steel 20.3.2007 Girder+RCC 50 Paikyon Kayin, Hlaingbwe 1,170 Bailey+wood 1.6.2007

2-5 No Name State or Division Length Type of Bridge Completed . (feet) Date 51 Dagon Yangon, new Dagon 4,540 PCC+RCC 27.10.2007 City 52 Ooru Sagaing, Homemalin 1,090 PCC+RCC 9.2.2008 53 Ayeyarwady Mandalay, 5,614 Steel Truss 11.4.2008 (Yadanapon) Amarapura 54 Bwetkyi Magway, Aunglan 1,770 PCC+RCC 2.5.2008 55 Sittaung (Mokpalin) Mon, Kyaikto 2,392.7 Steel truss+Steel 12.7.2008 Grider+RCC 56 Ngawun (In City) Ayeyarwady, Ingapu 2,835 Steel Truss+PCC 21.3.2009 57 Yarzudaing No.1 Ayeyarwady, 1,956 PCC+RCC 22.8.2010 Mawlamyine kyun 58 Myaukyamar chaung Sagaing, Yinmarpin 1,280 Bailey 18.9.2010 59 Lainli Shan, Pinlaung 1,760 Cable stay 5.11.2010 60 Daung nay Chaung Magway, Magway 1,785 PCC 5.2.2011 61 Ayeyarwady Ayeyarwady, 10,814 Steel 27.11.2011 (nyaungdon) Nyaungdon Truss+PCC+RCC 62 Ayeyarwady Magway, Pakokku 13,537 Steel Truss + RCC 31.12.2011 (Pakokku) 63 Ayeyarwady Kachin, Bamaw 4,630 Steel 4.2.2012 (SinKhan) Truss+RCC+Borepil e 64 Chaungbyalkyi Ayeyarwady, Bogalay 1,040 Bailey + RCC 8.4.2013 65 Ayeyarwady (Malon) Magway, Malon 5,839 Steel Truss + RCC 11.5.2013 66 Minton Chaung Magway, Amarapura 1,080 Steel Truss + RCC 16.6.2013 (Yadanapon) 67 Thatkal Chaung Ayeyarwady, 1,820 Steel Truss + RCC 7.7.2013 Ngaputaw 68 Yadanartheinga Sagaing, Shwebo 2,480 Steel Truss +RCC 24.7.2013 69 Seikkyikhanangto Yangon 1,680 Bailey +RCC 27.11.2013 70 Bayintnaung Yangon 4,140.5 Steel Girdar 9.11.2014 3 71 No.2 Pauk (Yepyar) Magway 3,140 RCC 22.11.2014 72 Bogalay Ayeyarwady, Bogalay 4,005 Steel Girder + RCC 27.12.2014 73 Sonyal Rakhine 1,216 Steel Girder +RCC 1.5.2014 74 Thanlwin Kayah 1,260 Steel Girder + RCC 31.4.2015 (Pharsaung) 75 Myanmar – Lao Shan 22,693 Steel Girder + RCC 9.5.2015 Friendship bridge 76 Ayeyarwady Sagaing 7,730 Steel Girder + RCC 22.10.2015 (Hteegyaint) 77 Mumyint (Karbo) Sagaing 1,260 RCC 28.2.2016 78 Yewar chaung Sagaing 1,440 RCC 13.3.2016 79 Sittaung River Bago 1,200 RCC 22.3.2016 Bridge (Htantapin) Source：MOC

Bridges on major rivers in Myanmar are listed in Table 2-3.

Table2-4： Bridges on Major River No Name Span (feet) Type of Bridge River Ayeyarwady 1 Innwa Bridge (Sagaing) 3,960 Steel Truss 2 Nawaday Bridge 4,183 Steel Truss 3 Maubin Bridge 2,362 Steel Truss+ RCC 4 Bala Min Htin Bridge 2,688 Steel Truss

2-6 No Name Span (feet) Type of Bridge 5 Bo Myat Htun Bridge 8,544 Steel Truss 6 Anawrahtar Bridge 5,192 Steel Truss 7 Ayeyarwady Bridge (Magway) 8,989 Steel Truss+ PC+RCC 8 Dadaye Bridge 4,088 Steel Truss+ RC 9 Ayeyarwady Bridge (Yadanarpon) 5,641 Steel Truss 10 Ayeyarwady Bridge (Nyaungdone) 10,814 Steel Truss 11 Ayeyarwady Bridge (Pakokku) 13,537 Steel Truss 12 Ayeyarwady Bridge (Sinkhan) 4,630 Steel Truss+ PC+RCC Steel 13 Ayeyarwady Bridge (Malon) 5,839 Truss+RCC+Borepile Steel 14 Yadanartheinkha Bridge 2,480 Truss+RCC+Borepile 15 Ayeyarwady Bridge (Hteegyaint) 7,730 Steel Truss+RCC River Sittaung 16 Sittaung Bridge (Theinzayat) 2,320 Steel Truss Sittaung Bridge 17 680 CH Steel Girder (Taungngu-Mawchi-Loikaw) 18 Sittaung Bridge (Shwe Kyin-Madauk) 1,500 PC+RCC Steel Truss+ Plate 19 Sittaung Bridge (Mokepalin) 2,393 Girder + RC 20 Sittaung Bridge (Natthankwin) 720 Steel Truss River Thanlwin 21 Kwan Lon Bridge 789 Steel Suspension 22 Tar Kaw Bridge 780 Steel Truss 23 Thanlwin Bridge (Tarkawatt) 600 Bailey 24 Thanlwin Bridge (Hpa An) 2,252 Steel Truss 25 Thanlwin Bridge (Tarsan) 900 Suspension 26 Thanlwin Bridge (Mawlamyine) 11,575 Steel Truss+ PC+RCC 27 Thanlwin Bridge (Tarpar) 600 Steel Suspension 28 Thanlwin Bridge (Pharsaung) 1,260 Steel Truss + RCC River Chindwin 29 Shinphyushin Bridge 4,957 Steel Truss 30 Chindwin Bridge (Monywa) 4,730 Steel Truss Source: Note Book 2017, MOC

Outline of major bridges constructed in 2016 and 2017 is summarized in Table 2-4.

Table 2-5： Outline of major bridges constructed in 2016 and 2017 Machan Baw Bridge in Kachin region Chindwin Bridge (Kalaywa)

Chindwin Bridge (Homalin) Chaung Sone Bridge

2-7

Source: Study Team based on information from MOC

(3) Budget for Road and Bridge

Budget for construction and maintenance of the roads and bridges in Myanmar is allocated by the government based on the national annual budgetary plan. Budget amount of both planned and actual budget for road and bridge between 2011 till 2016 is shown in Table 2-5. Total amount of actual budget for Year 2015-2016 was about 347 billion Kyat, which was comprised of road construction (44%), bridge construction (36%), and maintenance work (20%).

Table 2-6： Budget amount for road and bridge （Unit：Million MMK） Planned budget 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Road 305,111.106 238,819.433 143,931.157 635,699.022 330,591.442 construction Bridge 204,482.460 181,786.829 92,395.845 N.A. N.A. construction Road 53,600.008 Maintenance 87,154.387 103,278.070 115,242.750 100,331.392 Bridge 14,821.24 Maintenance Total 596,747.953 523,898.562 354,569.952 - - Actual budget 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Road 303,906.961 238,701.433 143,931.157 142,172.094 153,801.930 construction Bridge 205,109.918 168,076.554 92,395.845 90,429.700 124,913.452 construction Road 53,262.488 Maintenance 87,154.387 102,649.111 68,549.469 68,417.639 Bridge 14,821.24 Maintenance Total 596,171.266 510,070.287 305,698.558 301,0109.433 346,799.11 Source: Study Team based on information from MOC

2-8 “Routine maintenance”, “Periodic Maintenance”, “Special Maintenance”, “Disaster Restoration” and “Maintenance for Yangon-Mandalay Expressway” are included. For the decision of maintenance budget amount for next year, actual budget amount for previous year is taken into account.

(4) Involvement of Private sector（BOT）

Road improvement by private sector (Build-Operate-Transfer: BOT) is widely executed in Myanmar. Most of the road and bridge construction has been implemented directly by MOC, so there are few cases of BOT. After the transition to democracy in March 2011, BOT road is underway and it is necessary to pay close attention to future trends. Currently, Yangon - Mandalay Expressway is under the direct control of MOC.

BOT project in Myanmar is listed in Table 2-6 and map of BOT road network is shown in Figure 2-3.

Table2-7： List of BOT project in Myanmar (as of 2013) Company Name Road Name, Road Section Road Length (km) Asia World 1. Mandaly-Lasho-Muse-NantKham road 1. 480 2. Maiyu-Kyukot road 2. 193.12 3. Theinni-Kwanlone-Chinshwehaw road 3. 106.21 4. Yangon-Bago-Meikhtilar-Mandalay (Yaytarshay-Pyinmanar) 4. 63.8 5. Yangon-Bago-Meikhtilar-Mandalay (Pyinmanar-Yameathin) 5. 73 6. Myitnge-Htonebo-Pyinoolwin 6. 15 7. Pathein-Ngwesaung 7. 47.5 8. Yangon-Pathein 8. 181.8 9. From Approach road of Aungzayya bridge to Nyaungtone 9. 5.2 junction 10. 7.2 10. From shwepyithar bridge to Nyaungtone junction 11. 34.3 11. Maubin-Sarmalauk Total – 1207.13 Thawtarwin 1. Kyaingtone-Tachilak 1. 164.5 Consrtuction 2. Yangon-Bago-Meikhtilar (Meikhtilar-Mandalay) 2. 141.6 Total– 306 Yuzana 1. Yangon-Bago-Meikhtilar-Mandalay (Yemeathin-Meikhtilar) 1. 77 Construction 2. Myitkyinar-Sadon-Kanpiketii (Winemaw-Kanpiketii) 2. 123.9 3. Kawtthaung-Bokepyin (50mile from Kawtthaung) 3. 80.5 4. Myeik-Tanintharyi 4. 80.5 5. Tanintharyi-Thalphyu 5. 51.5 6. Thalphyu-Maungtaw 6. 58 Total– 471.5 Aye Ko family 1. Hpaan-Kawkareik-Myawady 1. 45 Constuction 2. Mawlamyine-Eindu-Zarthapyin 2. 72.5 3. Mawlamyine-Mudon-Thanphyuzayat 3. 59.5 Total – 177 Lido Highway Myitkyina-Pansauk-Lido (Myitkyina – Nantmatee – Tanaing) Total– 139 PaHtama Pahote(Moekaung)-KarMine-Lawa-LoneKhin-PharKant Total– 105 Shwenangar Construction Naymin Yaung Taunggyi-Loilin-NantSam Total– 117.5 Shwethanlwin 1. Yangon-Myeik (Phayargyi – Kyaikhto =56/3) (Mokepalin 1. 103 Highway approach road = 8/0) 2. 42 2. Thaton-Hpaan (Thaton-Myinekalay) 3. 115 3. Yangon – Myeik (Kyaikhto-Thaton-Mawlamyine) 4. 77.2 4. Yangon-Bago-Myeikhtila-Mandalay(Bago-Nyaunglebin) Total– 337 Max Myanmar 1. Yangon-Pyi-Mandalay(Yangon-Pyi-Magway) 1. 537 2. No.4 road (6/0 to 12/4) 2. 10 3. Yangon-Bago-Meikhtilar-Mandalay (Htaukkyant-Bago) 3. 52

2-9 Company Name Road Name, Road Section Road Length (km) 4. No.2 road (Thingangyun-Zayatkwin) 4. 23 5. No.3 road 5. 14.5 6. No.7 road 6. 19.3 7. Htaukkyant Bypass 7. 2.6 8. Bago-Thanatpin-Khayan-Thongwa-Thanlyin (Dagon 8. 168 bridge-Thilawa industry zone) (Thanlyin-Kyauktan) Total – Thanlyin – Thilawa port) (Thanlyin – Thilawa-Lower 826.4 Pardagyi) (Pardagyi – Thilawa) NayLa Thitsar 1. Pyi – Taunggok 1. 164 Construction 2. Taunggok – Thandwe – Ngapali – Mazin - Lonethar 2. 91 Total– 255 Kyauksein Myay Mandalay – Lasho – Bamaw – Myitkyina (Bamaw – Myitkyina) Total – 188 Construction Suhtupan 1. Mandalay – Phawtaw (45/3 to 76/4), Phawtaw – 1. 76.4 Construction Thabaikkyin (10/7), Latpanhla – Sintku (5/4) 2. 64 2. Katha – Inndaw, Naba – Nantsiaung 3. 75.6 3. Monywa - Yayoo Total– 216 Taungpawdaytha Meikhtila – Taunggyi – Kyaington – Tachilaik (Meikhtila – Total – 226 Construction Taungyi) Kaungmon 1. Yangon – Pyi – Mandalay (Magway – Yaynanchaung – 1. 106 Construction Gwaycho – Kyaukpadaung) 2. 54.7 2. Magway – Minbu – Pwintphyu Total – 160.7 Myatnoethu 1. Meikhtila – Kyaukpataung – Nyaungoo – Bagan 1. 150 Construction 2. Bagan – Nyaungoo – Myinchan (Nyaungoo – Myinchan) 2. 64 Total– 215 Shwetaung 1. Mandalay – Sagaing – Monywa – Yayoo (Sagaing – 1. 117 Development Monywa), (Myinmu bypass) 2. 69 2. Mandalay – Sagaing – Shwebo (Ohntaw – Shwebo) Total – 186 Monywa Group Monywa – Yargyi Total–40/0 Construction Source：MOC

2-10 Figure 2-3： Map of BOT Road Network

[BOT Length by State]

Source: Study Team based on information from MOC

2-11 2-3 Overview of the project target area

(1) Geography of Yangon

The city of Yangon is located in the flood plain formed by the Ayeyarwady River, Hlaing river, Bago River and others and approximately 34 km inland from the mouth of the Yangon River which is traversing the Ayeyarwady River Delta. As for the ground height of the city small hilly areas with an altitude of about 30 m run north and south of the city and their east-west area is a flat topography with an altitude of about 3 to 5 m. And most of the other areas are wetlands and paddy fields.

(2) Geology of Yangon

In the Andaman trench of Bengal Bay, which is the west side of Myanmar, the Indian plate runs to northwards and gets under the Burma plate from the west to the east and the Sagaing fault running north and south of the eastern Myanmar is the border of the Burma plate and Sunda plate. By these activities 8 magnitudes 7 class earthquakes occurred in the Yangon region, the Bago region and Mandalay region, which are along the Sagaing fault, from 1930 to 1956.

・ Figure 2-4： Geology of Yangon Region

Source： Ministry of agriculture and irrigation (MOAI)

2-12 (3) Climate of Yangon

Yangon belongs to the tropical monsoon climate zone and the climate can be classified into summer from March to middle of May, rainy season from mid-May to mid-October and cool season from mid-October to February. During the summer season the temperature in April is especially high with the monthly average temperature of close to 40 degrees, while the cool season falls below 15 degrees. The average annual rainfall is less than 3,000 mm and shows the maximum rainfall in August. Floods, one of the major natural disasters of Myanmar, occurred from June to August and late September to October, especially during the August which is the monsoon season peak.

Figure 2-5： Rainfall of Yangon

Source：AFG Venture Group

(4) Economy of Yangon Yangon is the center of the Myanmar economy accounting for over 20% of the Myanmar GDP. Although the primary industry (agriculture, livestock, fishery, forestry) still accounts for 30% of Myanmar industry in Yangon the manufacturing and processing industry and the commercial and service industry dominate. That is Yangon is the commercial city.

Figure 2-6： Industrial are of Yangon

Source：JICA The Republic of the Union of Myanmar, a strategic urban development plan of greater Yangon final report I

2-13 (5) Ports of Yangon Yangon Port is a river port and is responsible for approximately 90% of domestic handling cargo volume. It is the largest port in Myanmar and.it is divided into "Yangon main port" located in front of the city area and " Thilawa port" located in the Yangon river basin in the southeast. Yangon main port has the history from the British colonial period where the Port Authority and many private piers are set along the left bank of the Yangon River. Meanwhile, Thilawa port began operation since the late 1990s, but for a long time its activity was poor. However, due to the opening of the Thilawa Industrial Park and the progress of the new container ports construction by Japanese ODA it is expected that the its handling volume will steadily increase.

Figure 2-7： Port of Yangon

Yangon Main Port

Thilawa Port

Source：JICA The Republic of the Union of Myanmar, a strategic urban development plan of greater Yangon final report I

2-14 2-4 Implementation capabilities of the counterpart

This project is to construct the elevated highway on the existing road managed by YCDC, YCDC and MOC agree that MOC is responsible for its construction thus MOC’s performance and capabilities is reviewed.

MOC is an agency responsible for construction and management of roads and bridges in Myanmar along with the housing development of cities. It is composed of 5 bureaus such as Minister's Secretariat, Department of Bridge, Department of Highway, Department of Construction, Department of Urban Planning and Housing Development and Department of Rural Road Development. This project is handled by Department of Highway and Department of Bridge is supporting them..

Figure 2-8： Organization of MOC

Source：MOC

Department of Highway is responsible for the management of 41,400km long road and has done many of its construction. And Department of Bridge has completed 495 bridges construction and management over 180 feet including long span bridges over Ayeyarwady, Sittang, Salween Rivers which flow from north to south of the country. Therefore, both Department of Highway and Department of Bridge have had sufficient construction and facility maintenance work experiences required for this project implementation thus MOC is judged to have adequate management ability for this project. Figures 2-9 and 2-10 show organization charts of Department of Highway and Department of Bridge respectively

2-15 Figure 2-9： Organization of Department of Highway

Source： MOC

2-16

Figure 2-10： Organization of Department of Bridge

Source： MOC

2-17

Chapter 3 Methodology

3-1 Contents of Survey

Overall flow chart for the Survey is shown in Figure 3-1. Confirmation and clarification of existing data is done at beginning of the Survey, after that, site investigation was carried out. Meeting with MOC was held at first site survey in order to discuss design condition of highway as basis of this study and all design condition of highway were agreed. Then, traffic demands forecast and outline design of highway and bridge were carried out. In order to estimate construction cost, submission of quotations for construction items was requested to the contractor from Myanmar and Vietnam. Based on submitted quotations, construction cost was estimated. Project cost was estimated based on construction cost, and economic and financial analysis were carried out. Then, problems and issues if this project is implemented by PPP scheme were summarized. Figure 3-1: Overall Flow Chart for the Survey

Commencement

Preliminary Study

Site Investigation

Outline Design for Highway - Specification - Alignment - Cross Section - Ramp Location

Traffic Demand Forecast Outline Design for Bridges Environmental - Appropriate Toll - Bridge Type Selection Study Rate - Span Arrangement - Traffic Demand

Operation and Construction Planning and Maintenance Cost Estimation

Economic and Financial

PPP Scheme Study

End

Source: Study Team

3-1 3-2 Study system and methodology

(1) Study system Study team organization and work allocations are shown in the figure 3-2. The team consists of Project Manager, Chef Engineer, Traffic Engineer, Bridge Engineers, Highway Engineer, O&M Specialist, Economic & Financial Specialist, Environmental and Social Specialist, PPP Business Manager and Coordinator. It is necessary to proceed the study work according to the planned schedule, because the analysis by the several responsible parties and the survey results are closely related to other survey items. Thus Project Manager and Chief Engineer informed all team members of the purpose of the survey and the details of the work and continuously checked the work progress performed by each member. Meetings were held as needed in order to obtain the desired results.

Figure 3-2: Study team organization and Work allocation

 Project Manager  Chief Engineer JFEE OCG Mr. Toru WATABIKI Mr. Koichiro OHHARU

 Coordinator  Environmental & Social  Traffic Engineer JFEE Specialist OCG Mr. Hiroyuki KAWASAKI OCG Mr. Mazhal IQBAL Mis. Mitsue UMIGUCHI

 Local Coordinator  Economic & Financial  Highway Engineer JFEE Specialist OCG Mr. Takeshi EBA MEC Mr. Takuma OGUNI Mr. Shin OMORI

 O&M Specialist 1  Chief Bridge Engineer MEC OCG Mr. Hiroshi WARITA Mr. Yukitomo TATSUMI

 O&M Specialist 2  Bridge Engineer MEC JFEE Mr. Mitsuhiro NARUSAWA Mr. Yasuhiro IMURA

 PPP Business Manager Marubeni Mr. Shohei KODAMA

JFEE: JFE Engineering Corporation OCG: Oriental Consultants Global Co., Ltd. MEC: Metropolitan Expressway Company Limited.

Source: Study Team

3-2

(2) Study methodology

1) Project Plan Basic information was collected on socio-economic status, current transportation traffic, and future development plans from JICA study titled “The Republic of the Union of Myanmar, a strategic urban development plan of greater Yangon” (YUTRA) and other survey data.

2) Site Survey Necessary data and information such as present traffic and land use status for the study is collected by the site survey.

3) Road Plan Road design criteria and width configuration, which is the basic condition of this planning, are examined and decided. In addition, the motorway route which was proposed by JICA “The Republic of the Union of Myanmar, a strategic urban development plan of greater Yangon” study and finally decided by the Myanmar Government is confirmed and the road alignment and the location of the junctions are decided. Based on the current land use situation and consultation with the Myanmar Government, the study team conducted a comparative study on the interchange format and decided the format.

4) Traffic demand forecast Traffic demand is forecasted based on YUTRA data collected and analyzed by JICA and the planned route (including interchange) confirmed in the road plan review. In addition, since this project is planned under PPP scheme, the setting of optimal toll fee is studied taking toll resistance into consideration.

5) Bridge Plan Based on the road alignment and junction type examined by the road plan the optimum bridge type is studied. Span plan is also studied and the approximate quantity of bridge structure is calculated

6) Construction plan, cost and period study Construction cost is estimated based on the construction plan and period studied and quantity calculated. For this study estimates are collected from Myanmar and Vietnam contractors.

7) Analysis of environmental and social impacts Preliminary assessment of the social environment and natural environment impacts predicted through this project implementation is examined and the scoping results are prepared. In addition, the Myanmar national law and the JICA Environmental Guidelines were reviewed and necessary matters were studied for the future project implementation. A brief study for the social environment influence is conducted based on the road alignment proposed by the road plan.

3-3 8) O&M Plan BOT scheme and O&M status (especially toll collection method) is confirmed based on the interview to BOT companies and MOC along with the site survey. Case study of the similar projects in the neighboring countries is also conducted.

9) Economic & Financial Study As a precondition for preliminary economic analysis, the analysis period, social discount rate and exchange rate were set as follows based on traffic volume, driving speed and toll fee along with their future forecast. · Analysis period:  Construction start is in 2020  Construction period is for 4 years  Service period is 25 years after starting service In case  The social discount rate was set at 12%.  The exchange rate is 1US $ = 110 Japanese Yen, 1US $ = MMK 1,400.

10) Study on PPP scheme Based on FIRR calculated in the Economic & Financial Study PPP scheme for this project is studied.

3-4 3-3 Study schedule

(1) Outline An overview of the study schedule is shown below.

Table 3-1: General study schedule 2017 2018 Work Item Sep. Oct. Nov. Dec. Jan. Feb.

（In Japan） 1. Data collection and analysis 2. Traffic Plan 3. Road Plan 4. Bridge Plan

5. Study of Construction method

6. Construction plan and cost estimate 7. O&M Plan

8. Economic & Financial Study 9. Analysis of environmental and social impacts 10. Study on energy consumption （in Myanmar） 1. No.1 site survey 2. No.2 site survey 3. No.3 site survey 4. No.4 site survey 5. No.5 site survey 6. No.6 site survey Final Meetings reporting

Source: Study Team

3-5 (2) Site survey Site survey is conducted as follows:

Table 3-2: Site survey schedule No. Period Study items Note No.1 site survey September 3 – 9, Discussion with MOC about 2017 basic project conditions such as site condition, design condition, road alignment, ramp location, bridge design and confirmation of the work sharing and responsibilities for project implementation. No.2 site survey September 16 – 22, Study of environmental and 2017 social impacts No.3 site survey October 22 – 25, Discussion with MOC 2017 aboutroad and bridge plan No.4 site survey November 19 – 22, Discussion with MOC about 2017 Traffic forecast, tollrevenue and project cost No.5 site survey December 25 – 28, Discussion with MOC about 2017 PPPsceme and O&M No.6 site survey February 7 – 9, 2018 Final reporting Source: Study Team

(3) Survey in Japan: none

3-6

Chapter 4 Traffic Demand Forecast

4-1 Purpose of Study

A series of traffic demand forecasts were made based on various development options to study the key issues listed below: • To test highest revenue toll rates for YIRR East section. • To find revenue variation due to Yangon urban expressway network development options.

4-2 Result of Traffic Demand Forecast

(1) Introduction

This stage of the demand forecast process involves assigning the O/D trip tables to the combined road and rail network under consideration. In the case of base year, the current 2016 road & rail network is adopted – the details to follow. In the case of the future years, the base year and future network updates: committed road and rail projects and other road traffic improvements are included as the base case scenario.

(2) Study Result on Most Appropriate Toll Rate

1) Introduction

As described before, traffic demand forecast analysis is done for Year 2025 and Year 2035. Therefore, most appropriate toll fee is studied for both Year 2025 and Year 2035. In addition, following conditions are considered. • Vehicle Type: Passenger Car and Truck • Toll Collection: Flat Toll Rate (detail explanation will be late Chapter)

2) Result for Year 2025

Traffic Demand Forecast Analysis is done based on various combinations of toll fee. Result for Year 2025 is shown in Figure 4-1 and Table 4-1.

Figure 4-1： Diagram for Toll Fee Study Result for 2025

4-1 2025 Toll Revenue Optimization 100,000

80,000

60,000

40,000

20,000

0 Toll MMk'000/Day Revenue Toll 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Toll/PCU

Source: Study Team

Table 4-1：Combination of Toll Rate for Year 2025 Toll Rate [MMK] Revenue Weighed No. Passenger Truck Total PCU per Day [1000 Judgement Toll [MKK] Car MMK/Day] 1 600 1,800 94,425 618 57,831 2 1,200 1,800 71,461 1,215 85,456 Recommended 3 1,500 2,500 51,285 1,526 76,979 4 1,500 3,500 50,172 1,500 75,258 5 2,000 3,000 36,220 2,025 72,186 6 2,300 5,200 29,316 2,300 67,427 7 4,000 8,600 5,995 4,000 23,980 Source: Study Team

Based on study result, toll combination No.2 shows highest revenue, therefore, toll combination No. 2 is recommended to be applied for toll fee at Year 2025.

3) Result for Year 2035

Result for Year 2035 is shown in Figure 4-2 and Table 4-2.

4-2 Figure 4-2： Diagram for Toll Fee Study Result for 2035

2035 Toll Revenue Optimization 250,000

200,000

150,000

100,000

50,000

Toll MMk'000/Day Revenue Toll 0 1,000 2,000 3,000 4,000 5,000 Toll/PCU

Source: Study Team

Table 4-2： Combination of Toll Fee for Year 2035 Toll Fee [MMK] Revenue Weighed No. Passenger Truck Total PCU per Day [1000 Judgement Toll [MKK] Car MMK/Day] 1 600 1,800 170,667 624 105,121 2 1,200 1,800 149,233 1,216 178,408 3 1,500 2,500 130,806 1,523 196,328 4 2,000 3,000 108,537 2,026 216,296 Reommended 5 2,300 5,200 94,663 2,300 217,725 6 2,500 3,500 83,820 2,529 208,126 7 3,000 4,000 72,972 3,006 218,506 8 4,000 8,600 54,875 4,000 219,500 Source: Study Team

Based on study result, highest revenue toll combination is No. 8. However, toll fee for toll combination No. 8 is rather high in consideration of increasing rate from Year 2025.

According to current economic indexes in Myanmar, 6 % annual increasing rate for CPI is reasonable range, therefore, toll combination No. 4 which follows 6% annual increasing rate from toll fee in Year 2025 can be applicable. Revenue for toll combination No. 4 is about 98.5% compared with highest revenue. Therefore, toll combination No. 4 is recommended to be applied for toll fee at Year 2025.

It is noted this recommendation is only for this pre-FS. Toll fee actually applied in future shall be decided based on actual annual increasing rate of CPI in Myanmar.

4-3 (3) Result of Traffic Assignment at each Ramp

1) Result for Year 2025

Traffic assignment result at each ramp is shown in Figure 4-3. It is noted, the most appropriate toll fee explained in previous section is applied.

Figure 4-3： Traffic Assignment Result at each Ramp for 2025

Unit: PCU/Day Source: Study Team

4-4 2) Result for Year 2035

Traffic assignment result at each ramp is shown in Figure 4-4. It is noted, the most appropriate toll fee explained in previous section is applied.

Figure4-4： Traffic Assignment Result at each Ramp for 2035

Unit: PCU/Day Source: Study Team

4-5 (4) Study Result on Future Development Scenario

1) Introduction

Traffic assignment trend is studied based on different development scenario for urban expressway network in Yangon. Studied case and applied urban expressway network are shown in Table 4-3, Figure 4-5, Figure 4-6 and Figure 4-7

Table 4-3：Study Cases for Development Scenario Study

Case Road Network O/D

With YORR YIRR East Section + YORR East Section 2025 (East Pha1) Phase1 2035 YIRR Full YIRR Full Implementation + YORR East 2035 Imple. Section Phase1 with necessary connection road YIRR and YORR full implementation with all Full Imple. 2035 connection road Source: Study Team

Figure 4-5： Road Network for “With YORR (East Pha1)”

Note: Yellow Color Line shows applied Urban Expressway Network Source: YUTRA II Report added by Study Team

4-6 Figure 4-6：Road Network for “YIRR Full Imple.”

Note: Yellow Color Line shows applied Urban Expressway Network Source: YUTRA II Report added by Study Team

Figure 4-7： Road Network for “Full Imple.”

Note: Yellow Color Line shows applied Urban Expressway Network Source: YUTRA II Report added by Study Team

4-7 2) Result for Year 2025

Study result based on different development scenario for Year 2025 is shown in Table 4-4. Based on study result, there is no significant difference by development scenario.

Table 4-4： Study Result on Different Development Scenario for 2025 Vehicle Number per Day Revenue Case Name Passenger Car Truck [1000 Ratio MMK/Day] IRR East 68,569 2,892 85,456 1.00 Section With ORR 68,007 2,075 83,885 0.98 (East Pha1) Source: Study Team

3) Result for Year 2035

Study result based on different development scenario for Year 2035 is shown in Table 4-5. Based on study result, there is no significant difference by development scenario.

Table 4-5： Study Result on Different Development Scenario for 2035 Vehicle Number per Day Revenue Case Name Passenger Car Truck [1000 Ratio MMK/Day] IRR East 103,984 4,553 216,296 1.00 Section With ORR 84,283 1,426 213,753 0.99 (East Pha1) IRR Full 78,604 297 197,144 0.91 Imple. Full Imple. 78,457 421 197,042 0.91 Source: Study Team

4-8

Chapter ５ Road Planning

5-1 Road Design Standard

(1) Design Standard

Road Design Criteria in Myanmar, MOC, 2015 (hereinafter referred to as “MOC Road Design Criteria”) shows some criteria for urban expressway design, but detailed are not included.

Therefore, YIRR Eastern Section is designed based on the Metropolitan Expressway Design Criteria in Japan.

This criteria was prepared specially for Tokyo urban expressway network development, and is reliable with more than 50 years development experience.

(2) Design Speed

In the Metropolitan Expressway Design Criteria, 80km/h or 60km/h can be selected for design speed.

60km/h of design speed is applied for YIRR (Eastern Section) as Yangon is highly urbanized, and thus land acquisition is very difficult. 60km allows smaller horizontal curve radius. Table 5-1: Design Speed Metropolitan Expressway Design MOC Road Design Criteria Criteria Criteria Design Speed 80 km/h 60 km/h 100 km/h Classification Expressway Expressway Expressway Area Urban CBD in Urban Urban Min Horizontal Curve Radius 280 (230) m 150 (120) m 440 m Min Transition Curve Length 70 m 50 m 60 m Max Superelevation 10 % 10 % 6 % Stopping Sight Distance 140 (110) m 85 (75) m 185 m Max Vertical Grade 3 % 4 % 3 % * ( ) : For special case such as land acquisition constraint Source: Metropolitan Expressway Design Criteria, MOC Road Design Criteria

(3) Geometric Design Criteria

Major road geometric design criteria in Metropolitan Expressway Design Criteria and adopted value for the Project are shown in Table 5-2. Table 5-2: Road Geometric Design Criteria Item Criteria Adopted Value Design Speed (km/h) 60 60 Min. Horizontal Curve Radius (m) 150 (120) 120 Min. Horizontal Curve Length (m) 100 >100 Max. Superelevation (%) 10 10 Min. Transition Curve Length (m) 50 >50 Stopping Sight Distance (m) 85 (75) >85 Max. Vertical Grade (%) 4 (8) 4 Min. K Value Crest 20 (14) >20

5-1

Sag 15 (10) >15 Min Vertical Curve Length (m) 50 >50 * ( ) : For special case such as land acquisition constraint Source: Metropolitan Expressway Design Criteria 5-2 Cross Section

Typical cross sections for main line and interchange ramp of the expressway are shown in Figure 5-1, which were determined in accordance with the Metropolitan Expressway Design Criteria.

Figure5-1: Typical Cross Section of YIRR

< Main Line (1 Bridge for Both Directions) > < Main Line (2 Separate Bridges) >

< Interchange Ramp > Unit: m Source: Metropolitan Expressway Design Criteria

5-3 Route Study

(1) Alignment

Alignment of YIRR was determined through the discussion with MOC. YIRR runs above the center of existing roads such as Upper Pazundaung Road, Thanthumar Road and Thudhamma Road by viaduct.

Location map of the YIRR alignment is shown in Figure 5-2.

5-2

Figure 5-2: Location Map of the YIRR Alignment

終点

ヤンゴン内環状道路始点高速道路（将来計画）高速道路（将来、トンネル）

Source: Study Team

Plan of YIRR is shown in Figure 5-3.

5-3

Figure 5-3: Plan of YIRR

5-4

5-5

5-6

5-7

5-8

5-9

5-10

5-11

5-12

5-13

5-14

5-15

5-16

5-17

5-18

5-19

5-20

5-21

5-22

5-23

5-24

5-25

5-26

5-27

Source: Study Team

5-28

(2) Beginning Point

Beginning point of YIRR is located in the CBD area of Yangon. There are many houses and shops along the existing roads, which are expected to be used for the construction of YIRR, in this area.

The beginning point of YIRR is determined so that land acquisition and compensation can be minimized.

As the alternative beginning point, the following two points are selected. · Alternative 1: South End of Botahtaung Pagoda Road · Alternative 2: South End of Yazadirit Road

Figure 5-4: Alternatices for Beginning Point

小さな曲線半径

小さな曲線半径代替案1 代替案2

Source: Study Team

In Alternative 1, approximately 80 buildings including high-rise commercial buildings and Pagoda are affected, as Botahtaung Pagoda Road has some small radius curves, which does not meet the curve radius for the expressway, YIRR.

Alternative 2: South End of Yazadirit Road was selected as the beginning point of YIRR, although a small number of compensation is still required in Alternative 2.

5-29

5-4 Study for Interchage Location

Interchanges are located around the major arterial roads, so that much traffic from arterial roads can access to YIRR easily. Future junction (ramps between YIRR and another expressway) locations are also considered in the selection of interchange locations.

Interchange locations, i.e. on ramp and off ramp locations, are shown in Figure 5-5 and Table 5-3.

Nine (9) ramps including beginning point and end point will be provided for each direction in YIRR.

Figure 5-5: Interchange (On/Off Ramps) of YIRR

Source: Study Team

5-30

Table 5-3: Interchanges (On/Off Ramps) of YIRR Ramp Ramp Name Distance No. Beginning Point to End Point On B: From Beginning Point On 1: From Wai Za Yan Tar Rd 4.1km Off 1: To Kamar Kyi Rd (Thanlyn Br) & No.2 Rd (Dagon Br) 5.2km On 2: From Kamar Kyi Rd (Thanlyn Br) & No.2 Rd (Dagon Br) 4.0km Off 2: To Parami Rd 5.4km On 3: From Parami Rd 4.0km Off 3: To Radio Station Rd (Airport) 4.4km On 4: From Radio Station Rd (Airport) 3.9km Off E To End Point 4.2km 5.2km End Point to Beginning Point On E: From End Point Off 4: To Radio Station Rd (Airport) 4.2km On 5: From Radio Station Rd (Airport) 5.2km Off 5: To Parami Rd 3.9km On 6: From Parami Rd 4.4km Off 6: To Kamar Kyi Rd (Thanlyn Br) & No.2 Rd (Dagon Br) 4.0km On 7: From Kamar Kyi Rd (Thanlyn Br) & No.2 Rd (Dagon Br) 5.4km Off 7: To Wai Za Yan Tar Rd 4.0km Off B To Beginning Point 5.2km 4.1km Source: Study Team

5-5 Study for Interchange Type

(1) Interchange Ramp Type

On and off ramps of interchange are normally constructed outside of expressway. The ramps are connected to the outer lane (traveling lane) of expressway. In this interchange type, construction of the frontage road is required at the outside of interchange ramps to provide the access for neighbouring houses / shops, and thus more land acquisition are required.

This outer interchange ramp type is not applied in this project, as the land acquisition is very difficult in Yangon.

5-31

Figure 5-6: Outer Interchange Ramp (Not Applied for YIRR)

Unit: m Source: Study Team

In this project, the interchange ramps will be constructed at the center of expressway in order to minimize the land acquisition. The ramps will be connected to the inner lane (passing lane) of expressway. In this interchange type, separate expressway bridges will be constructed in the interchange section.

Figure 5-7: Inner Interchange Ramp (Applied for YIRR)

Unit: m Source: Study Team

5-32

(2) Cross Section for At-grade Highway in the Interchange Section

Cross section for the existing at-grade highway will be narrowed in order to install the piers of elevated expressway, YIRR, in the at-grade highway.

Fiure 5-8: Cross Section for Existing At-grade Highway

Unit: m Source: Study Team

Cross section of the at-grade highway under the expressway is determined in accordance with MOC Road Design Criteria. At-grade highway will meet the criteria for Collector Road (Urban Area, Design Speed: 60km/h) in MOC Road Design Criteria.

3.0m of carriage way, 1.5m/4.0m of right shoulder, 0.5m of left shoulder and 2.0m/1.0m of sidewalk will be provided. Cross sections for standard section (not interchange section) as well as interchange/ramp section are shown in Figure 5-9.

Figure 5-9: Cross Section for At-grade Highway under the Expressway

Unit: m Source: Study Team

5-33

Chapter 6 Bridge Planning

6-1 Arrangement of Design Standard

(1) Design Standard

1) Design Standard and Design Condition

“Specifications for Highway Bridges, 2012” which is Japanese standard to design bridges are applied for the design standards and design conditions of bridges in this study. For the natural conditions such as wind loads, temperature ranges and earthquake loads the design conditions are individually considered.

i. Dead Load

The unit weight of materials is adopted in Table 6-1.

Table 6-1: Unit Weight of Materials Unit Weight Unit Weight Type of Material Type of Material （kN/m3）（kN/m3） Steel 77.0 Cement, Mortar 21.0 Reinforced Concrete 24.5 Asphalt Pavement 22.5 Prestressed Concrete 24.5 Concrete Pavement 23.0 Concrete 23.0 Wood 8.0 Source: Specifications for Highway Bridges, 2012

ii. Live Load

The B type of live loads is adopted based on “Specifications for Highway Bridges, 2012”.

iii. Wind Load

The wind load which is 100mph (44.4m/s) for bridge design is decided by MOC.

iv. Temperature Range

The temperature range for bridge design in Myanmar is not decided. Temperature comparison showed that the temperature range in Japan is larger than in Myanmar. In the case that “Specifications of Highway Bridges, 2012” is adopted, from the aspect of bridge design the bridge design does not have any issues. Therefore the temperature range is adopted based on “Specifications of Highway Bridges, 2012”.

Main Structure · Concrete Bridges: Temperature Range: ±15 Degree, Difference of Temperature between Materials: 5 Degree · Steel Bridges: Temperature Range: ±30 Degree, Difference of Temperature between Materials: 10 Degree

Bearing and Expansion Joint · Concrete Bridges: Temperature Range: ±20 Degree · Steel Bridges: Temperature Range: ±30 Degree

v. Earthquake Load

The earthquake load is decided from the map of seismic acceleration made by Association for Earthquake

6-1 Engineering in Myanmar. Seismic acceleration on the ground surface level around Yangon Inner Ring Road on the map is kh=0.30. This seismic acceleration is same as Level 1 of seismic force in “Specific of Highway Bridges, 2012”.

Figure 6-1: Seismic Acceleration on Ground Surface (475 year/times)

Source: Seismic Hazards Assessment for Myanmar, Myo Thant et al. 2012

(2) Crossing Roads, Crossing Railway and Crossing River

The length of Yangon Inner Ring Road is about 25 km and crosses many roads, railway and river (hereinafter called crossing objects). The crossing objects of relatively large scale are shown in Table 6-2.

The locations shown in Table 6-2 need bridges with long spans and these locations are called “special section”. On the other hand, the locations of no crossing objects or crossing objects relatively small scale are called “general section”.

6-2 Table 6-2: Crossing Objects of Relatively Large Scale

Minimum Station No. Crossing Objects Span Length Beginning Point Strand Road 0+500 Maha Bandula Road 50m 2+340 Yamonnar Road 40m 4+540 Approach Road of Nga Moe Yeik Bridge 50m 5+060 Masjid Road 60m 6+500 Wai Za Yan Tar Road 50m 10+240 No.2 Road 60m 10+500 Railway 50m 10+640 Thing Ankyun Road 60m 14+340 Parami Road 50m 14+520 River 60m 16+900 Thudhamma Road 70m 18+880 Radio Station Road 60m End Point Khayae Pin Road Source: Study Team

6-2 Study of Bridge Type at General Section

(1) Study of Superstructure Type at General Section

In this section, the superstructure type at general section is selected. Since almost of all Yangon Inner Ring Road is located on existing roads, if a bridge type that requires construction on site selected, the traffic on the existing road will need to be stopped for a long time. Therefore, bridge types such as “PC Hollow Slab Bridge” are not included in comparison table of bridge types.

On the other hand, the piers and foundations are almost located at center of existing roads. If the bridge type with longer span is selected, size of pier, pile cap and foundation is larger. It is important that the influence of traffic on existing roads is minimized. Therefore the bridge type with longer span is not adopted. Bridges which span length less than 50m are selected.

Table 6-3: Result of First Bridge Selection at General Section

Adopted Span Bridge Type Feature Length PC-I Girder 20m to 40m Economical bridge type. Bridge Construction period is shorter because crane erection method is used. PC Box 30m to 50m Economical bridge type. Girder Bridge Construction period is longer because span-by-span erection method is used. Steel-I Girder 30m to 50m This bridge type is not economical because bridge type made by steel Bridge which is costly. The quality is excellent because the material made at factories. Construction period is shorter because crane erection method is used. Source: Study Team

6-3 The comparison items for bridge type selection are structural performance, constructability, construction period, maintenance and construction cost. As a result, PC-I Girder Bridge with span length of 30m is selected as shown in Table 6-4. The cross section of PC-I Girder Bridge is shown in Figure 6-2.

6-4 320 △ ◎ △ ○ ◎ 970 ◎ ◎ ○ ◎ ◎ 40m) 8250 3 1000 18140 16200 Option 3

1.40 2400 8250 Steel-I Girder Bridge (Span Length ： 970 320

30 ～ 50m Many Normal (RC Slab) Easy (Crane Erection Method) Fabrication at Factory 1.00 15 years/times 2000

◎ △ ○ ◎ ◎ 320 2000 ◎ ◎ ◎ ◎ ◎ 40m) 8250 2 1000 18140 14140 Option 2 1.20 8250 PC Box Girder Bridge (Span Length ： 2000 320 30 ～ 50m Many (PCHigh Slab) Easy (Span-by-span Method) Fabrication at Construction Site 2.00 RequiredNot 320 ◎ ○ ◎ ◎ ◎ 970 : Result of Second Bridge Type Selection (1/2) Selection Type Bridge Second of Result 4 : - ◎ ◎ ○ ◎ ◎ 30m) 8250 Table 6 Table 1 1000 18140 16200

Option 1 1800 1.00 8250 PC-I Girder Bridge (Span Length ： 970 320 20 ～ 40m Many Normal (RC Slab) Easy (Crane Erection Method) Fabrication at Construction Yard 1.00 RequiredNot

Good, △ Normal ○ Good, Span Length Usage Record Durability Construction Method Quality Management Re-painting Image Bridge Type Excellent, ◎ Excellent,

Evaluation Source: Source: Team Study Legend ： Structural Performance Constructability Construction Period (Rate) Maintenance Construction Cost (Rate)

6-5 Table 6-4: Result of Second Bridge Type Selection (2/2)

Comparison How to Evaluation Item Structural The evaluation of structural performance for each option is based on their reliability and Performance durability. The reliability is evaluated based on their usage record. The usage record is the number of bridges of that type being constructed in the past. It is assumed that it is more reliable to secure/ predict the structural performance of the bridge with larger usage record. The durability of bridges is directly related to its life span, which means the higher the durability is, the longer the bridge can be used. A bridge consists of floor slab, girders and cross beams. Unlike other elements, the floor slab is directly under the effect of live loads by passing vehicles and subject to fatigue problem. Among structures being used, RC slabs are of inferior durability to PC slabs, thus have shorter life spans. Generally, RC slabs can be used for 50 years while PC slabs can function roughly 100 years. For this reason, structural durability is evaluated based on the durability of floor slabs. Constructability Constructability indicates the level of difficulty regarding the construction conditions and the quality management. The level of difficulty regarding the construction condition is also one of the important factors to be considered in order to achieve the bridge construction with high degree of safety. The level of difficulty regarding the construction condition varies among erection methods and bridge types. Crane erection method and span-by-span method are easier methods. Quality management is also one of the important factors to be considered in order to achieve the construction with high quality. In case of the materials made at factories or at temporary construction yard, it is easy to control the quality. However it is difficult to control the quality to make the materials in construction site. To provide high quality, quality control is necessary. Thus, this criterion evaluates where the materials are made. Construction Construction period is evaluated. Period Maintenance Regarding bridge maintenance, repainting work of bridge components are taken into consideration. Repainting is the required work in order to lengthen the bridge life span. If neglected, steel corrosion might occur where paintwork has deteriorated, which could lead to severe damage later on. As painting can only stay protective around 15 years, repainting is necessary. Since repainting is costly, the structure without the need of repainting is desirable. Construction Construction cost is evaluated for direct costs. Cost Source: Study Team

Figure 6-2: Cross Section of PC-I Girder Bridge at General Section 18140

320 8250 1000 8250 320 1800 1800

970 6@2700=16200 970

Source: Study Team

6-6 (2) Study of Substructure and Foundation Type at General Section

1) Pier Type

In almost all of the general section the pier can be set at center of existing roads. Therefore the study of pier type is carried out based on the T-shape pier. As a result, the pier width along transverse direction is 3.0m and length of pier head along transverse direction is 7.6m. Moreover the pier is made by reinforced concrete and pier head is made by prestressed concrete because it is difficult to adopt the reinforced concrete for a pier head with length of 7.6m. The cross section of T-shape pier is shown in Figure 6-3.

Figure 6-3: Cross Section of Substructure at General Section (T-shape Pier)

18140 320 8250 1000 8250 320

7600 3000 7600 30000 1500 10500 1500 3000 1500 10500 1500 3000 7000 500 500 7000 3000

Source: Study Team

On the other hand, in rare cases it is difficult to set the pier at the center of an existing road. In this case T-shape pier is not adopted. Instead, the rigid frame type of pier is to be adopted. There are three types of rigid frame piers for the general section. As an example, shape of one of the rigid frame pier is shown in Figure 6-4.

Figure 6-4: Cross Section of Substructure at General Section (Rigid Frame Type of Pier)

18140 320 8250 1000 8250 320

2500 18500 2500

30000 1500 2500 500 17500 500 2500 1500 500 1000 7000 250 250 7000 1000 500 1000

Source: Study Team

6-7 2) Foundation Type

In general ground condition around Yangon Inner Ring Road comprises layers of sand and silty sand alternately. The sand is not pure sand, including the silt. From boring data of other projects the N value of silty sand is assumed to be about 0 to 20 and sand is assumed to be about 30 to 50. It is assumed that the supporting layer exists 50m depth from ground surface and its N value is about 30 to 50. As a result, the length of foundation is assumed 50m.

On the other hand, PC-I Girder Bridge with span length of 30m is selected and its number of lanes is 4. To select the foundation type the length of foundation and weight of superstructure is considered. As a result the bored pile is selected because this foundation type is economical and is commonly used in Japan and Myanmar.

3) Summary of Bridge Type Selection at General Section

The general view of PC-I Girder Bridge with T-shape pier is shown in Figure 6-5 and the general view of PC-I Girder Bridge with rigid frame type of pier is shown in Figure 6-6.

Figure 6-5: General View of PC-I Girder Bridge with T-shape Pier at General Section

18140 320 8250 1000 8250 320

7600 3000 7600 30000 1500 10500 1500 3000 1500 10500 1500 3000 7000 500 500 7000 3000 2000

1500 3750 3750 1500 10500

Source: Study Team

6-8 Figure 6-6: General View of PC-I Girder Bridge with Rigid Frame Type of Pier at General Section

18140 320 8250 1000 8250 320

2500 18500 2500

30000 1500 2500 500 17500 500 2500 1500 500 1000 7000 250 250 7000 1000 500 1000 2000 2000

1500 3750 1500 1500 3750 1500 6750 6750

Source: Study Team

6-3 Study of Bridge Type at Special Section

(1) Study of Superstructure Type a Special Section

In order to cross crossing road, railway and river shown in Table 6-2, bridge whose span length is about 40~60m is required. Study of superstructure type for these bridges as “Special Section” is carried out.

Since span length for special section bridge becomes longer, size of pile cap and foundation becomes larger, also. Thus, effect on existing traffic during construction work becomes larger. In order to avoid this negative impact on existing traffic, light weight structure type is selected as superstructure type at special section. If comparison between PC superstructure and steel superstructure is made, steel superstructure is lighter than PC superstructure, and erection work is easier, also. Thus, steel superstructure type is selected as superstructure at special section. Since required span length has range from 40m to 70m and superstructure type will be different based on horizontal alignment (straight or curve), detail superstructure type is decided based on required span length and horizontal alignment. Type of superstructure is summarized in Table 6-6.

6-9 Table 6-5: Result of superstructure type selection at special section

Superstructure Applied Span Horizontal Characteristic Type Length Alignment Steel I-Girder 40～50m Straight - Most economical type for applied span length - Applied to span length less than 50 m and straight alignment. Steel Box 50～70m Straight, - Most economical type for applied span length Girder Curve - Applied to span length more than 60 m and curved alignment Source: Study Team

Cross section for steel I-girder is shown in Figure 6-7, and cross section for steel box girder is shown in Figure 6-8.

Figure 6-7: Cross Section of Superstructure at Special Section (Steel I-Girder)

18140 320 8250 1000 8250 320 2000

1020 7@2300=16100 1020

Source: Study Team

Figure 6-8: Cross Section of Superstructure at Special Section (Steel Box Girder)

18140 320 8250 1000 8250 320 2400

1020 2300 4600 2300 4600 2300 1020

Source: Study Team

6-10 (2) Study of Substructure and Foundation Type at Special Section

Substructure and foundation types at special section are T-shape pier and bored pile, respectively, as same as general section. However, based on alignment of existing road, portal type pier will be required. If distance between piers becomes large, steel portal pier type will be applied.

Figure 6-9: Bridge Type at Special Section (Steel I-Girder and T-shape Pier)

18140 320 8250 1000 8250 320 2000 1500 1500

7600 3000 7600 18200 9100 6100

Source: Study Team

Figure 6-10: Bridge Type at Special Section (Steel Box Girder and Steel Portal Pier)

18140 320 8250 1000 8250 320 2400 2500 2500

2500 21500 2500 10525 9995 8025 7495

Source: Study Team

6-11 6-4 Study of Bridge Type at Ramp Section

There is1 ramp at beginning point and 8 ramps along the main line and at end point, to give a total number of 9 ramps. The ramp location is shown in Figure 6-11.

Figure 6-11: Ramp Location

Source: Study Team based on Google Map

(1) Study of Bridge Type at Ramp Section (Beginning Point)

1) Study of Superstructure Type at Ramp Section (Beginning Point)

The ramp section at beginning point is a straight line and the bridge condition is same as general section. There are no crossing objects at this point and it is possible to set the pier location freely. Therefore PC-I Girder Bridge with span length of 30m is adopted at ramp section at beginning point.

6-12 2) Study of Substructure and Foundation Type at Ramp Section (Beginning Point)

The T-shape pier for substructure and bored pile for foundation are adopted at ramp section at beginning point because the bridge condition is same as general section.

(2) Study of Bridge Type at Ramp Section (Intermediate and End Point)

1) Study of Bridge Type at Ramp Section (Intermediate and End Point)

In this section, the bridge type at ramp section, at intermediate and end point is selected. The ramp is generally set at a location with no crossing objects and regarding the pier location along the longitudinal direction, the control point to set pier is not assumed. On the other hand the width of ramp is about 25m and the width of ramp is 7m wider than general section (width of general section is about 18m). During the bridge construction, it is required to consider the effect on the existing road such as whether a detour is needed or not.

Based on the above reasons, the study of ramp type is same as general section. However, the PC Box Girder Bridge is not a suitable bridge type at ramp section because this bridge requires large construction space compared with PC-I Girder Bridge and Steel-I Girder Bridge. Therefore “PC Box Girder Bridge” is not included for selection of bridge type.

The comparison of bridge types at ramp section includes superstructure and substructure and its result is shown in Table 6-7, and details of alternatives are shown from Figure 6-12 to Figure 6-14.

6-13 △ ◎ △ ○ ◎ ○ ◎ ◎ ○ ◎ ◎ ◎ △ 50m) + Steel Pier ： Option 3 0.25m [email protected] ：： 0.75m ： Steel-I Girder Bridge (Span Length

30 ～ 50m 多い (PC Slab)Many Easy (Crane Erection Method) Fabrication at Fablication 15 years/times (Both of Superstructure and Substructure) Construction Period is Short Infulence of Existing Road is Small Width of Carrige Way RequiredNot 190.7 million USD expensive than Option 1 Width of Right Sholder Width of Walkway ○ ○ ○ ○ ◎ ◎ ◎ ◎ ○ ◎ ◎ ○ ◎ 50m) + RC Pier ：

Option 2 1.5m [email protected] ：： Adopted 1.0m ： Steel-I Girder Bridge (Span Length Source: Source: Team Study 30 ～ 50m Infulence of Existing Road is Normal Many Normal (RC Slab) Easy (Crane Erection Method) Fabrication at Fablication 15 years/times (Only Superstructure) Construction Period is Normal Width of Carrige Way Required area for width of 2.5m and 2 or 3 Number of Piers 57.1 million USD expensive than Option 1 Width of Right Sholder Width of Walkway ◎ ○ ◎ ○ ○ ◎ ◎ ◎ ○ ◎ ◎ △ ◎ Result Selection of Bridgeat RampType Section 6 : - 30m) + RC Pier ： Table 6 Table - Option 1 1.5m [email protected] ：： Adopted 1.0m ： 40m PC-I Girder Bridge (Span Length ～ △ Normal Infulence of Existing Road is Large 20 Many Normal (RC Slab) Easy (Crane Erection Method) Fabrication at Construction Yard RequiredNot Construction Period is Long Width of Carrige Way Required area for width of 2.5m and 3 or 4 Number of Piers Width of Right Sholder Width of Walkway Good, ○ Good, Cross Section Durability Construction Method Quality Management Plan Span Length Usage Record Re-painting 結論 Excellent, ◎ Excellent, Bridge Type

： Legend Performance Constructability Image Structural Maintenance Infulence of Existing Road Land Acquisition Construction Cost

6-14

+ RC Pier) I GirderI Bridge - ings of of 1 Option (PC ings Source: Source: Team Study Detail draw 12: Figure 6 - Figure

6-15

I Girder Bridge+I Girder RC Pier)

Source: Source: Team Study tail Drawings of Option2 (Steel - 13: De 13: Figure 6 - Figure

6-16

I GirderBridge + Steel Pier)

Source: Source: Team Study Detail Drawings of Option3 (Steel -

14: Figure 6 - Figure

6-17 In the result of bridge type selection at ramp section, both of Option 1 such as PC-I Girder Bridge (Span length: 30m) + RC Pier) and Option 2 such as Steel-I Girder Bridge (Span length: 50m) + RC Pier) is adopted. The reason of selecting 2 options is specific selection is based on actual construction conditions depending on the ramp location. For location at narrow construction area, Option 2 is adopted because this option does not need large construction area. For location at large construction area, Option 1 is adopted because this option is most economical. Option 3 is the easiest to construct but construction cost is the most expensive. Moreover, for this option, it is required to shrink the existing road width and walkway. Therefore Option 3 is not adopted.

2) Summary of Bridge Type Selection at Ramp Section

The Option 1 showing drawings of PC-I Girder Bridge is shown in Figure 6-15 and the Option 2 with drawings of Steel-I Girder Bridge is shown in Figure 6-16.

Figure 6-15: General View of Option 1 at Ramp Section (PC-I Girder Bridge + RC Pier)

25350 320 8560 320 320 5310 320 320 8560 320 500 500

7175 2500 6000 2500 7175 30000 1000 8000 12000 8000 1000 1500 6000 500 2500 6000 2500 500 6000 1500 500 500

1500 3750 1500 1500 3750 1500 6750 6750

Source: Study Team

6-18 Figure 6-16: General View of Option 2 at Ramp Section (Steel-I Girder Bridge + RC Pier)

25350 320 8560 320 320 5310 320 320 8560 320 500 500

7175 2500 6000 2500 7175 30000 1000 8000 12000 8000 1000 1500 6000 500 2500 6000 2500 500 6000 1500 500 500

1500 3750 1500 1500 3750 1500 6750 6750

Source: Study Team

6-19

Chapter 7 Construction Planning and Cost Estimation

7-1 Construction Planning

(1) General Construction Methodology

Construction works will be geographically divided into around five contract packages, and all packages will be carried out simultaneously. Construction methodology will basically depend upon each contractor’s plan however the total construction plan is planned based on the experience of similar projects in Japan and Myanmar. It is assumed that land acquisition and relocation of existing utilities, street trees, etc. will be carried out by Myanmar side before start of constructions.

Total construction period is shown in Table 7-1.

Table 7-1: Total Construction Period

(2) Bridge Construction Methodology

1) Foundation / Pier Works

Some lanes of existing roads will be temporarily unavailable during the construction of foundations and piers, especially, during construction of foundations and cofferdams. Immediately after the completion of cofferdam works, unavailable lanes of existing roads will be restored and open to the traffic. Pier heads will be constructed by using temporary columns and beams to ensure traffic space underneath the pier heads even during the construction period. Working spaces of pier head will be surrounded by plywood and safety nets to prevent any material falling into public traffic spaces.

2)Superstructure i) PC-I Girder Erection i Girder Erection by Crawler Cranes (Standard Erection Method)

The girders will be erected by two crawler cranes, if enough working space for the cranes can be secured. The girders will be transported to erection location by trailers, and using the crawler cranes, the girder will

7-1 be hoisted and erected on pier head. These works shall be performed only at night, as it is necessary to temporarily block public traffic during the works.

Figure 7-1: Transportation of Girder by Trailer Figure 7-2: Girder Erection by Crawler Crane

Source: Study Team

ii Girder Erection by Beam Launcher using Back-feeding Method

The girders will be erected by beam launcher, if enough working space for the cranes cannot be secured. The girders will be placed on the already erected girders by crawler cranes or side-lifting equipment at any span in which crawler cranes can be deployed, and then, the girders will be transported on already erected spans by trolleys. The girders will be fed into beam launcher from backward and erected by the launcher. This beam launcher has a self-launching function; therefore, the launcher can move to the next span without cranes. It is necessary to temporarily block the public traffic during the works. Therefore these works shall be performed only at night.

Figure 7-3: Girder Erection by Back-feeding Method Figure 7-4: Transportation of Girder by Trolley

Source: Study Team iii Sequence of Girder Erection along Ramps

There is no working space for crawler cranes along ramps; therefore, girders on ramps shall be erected by crawler cranes deployed at main-bridge side. After girders on ramps will be erected, girders on main-bridges will be erected by beam launcher.

7-2 ii) Steel Girder Erection

Steel girder will be assembled at the space near the erection span in which two crawler cranes will be secured. The assembled girders will be erected on pier head by crawler cranes. These works shall be performed only at night, and it is necessary to temporarily block the public traffic during the works.

7-2 Proposal on Execution of Construction work and its

Supervision System

Total length of the Project is about 25 km, and construction quantities are very huge. Since early completion of construction work by smooth progress of construction work is closely related to success of the Project, supervision system for construction work is studied.

Normally, the Engineer independent from both of the Client and the Contractor executes both detailed design and supervision of construction work for usual ODA project. This method has enough experience and low risk system. However, tender of the Contractor cannot commence until completion of all detailed design. Thus, implementation period of the Project becomes longer. It is expected SPC (Special Purpose Company) carries out construction work. Thus, it is required to shorten construction period with securement of quality of construction work. In this chapter, structures of construction work and supervision work are summarized. It is noted detailed study of this shall be done at next step.

Figure 7-5: System of execution of the Construction Work and Supervision Alternative 1 Same system as usual ODA Loan Project Organization Chart Note SPC - Detailed Design - Acquisition of approval from Special Purpose Company related agencies - Determination of construction Engineer package

Consultant - Preparation of Tender Document (General Condition and Technical Specification) - Execution of Bid for the Package 1 Package 2 Package N ・・・ Contractor - Construction Supervision - Others

7-3 Alternative 2 CM and GC System More practical design for actual construction work can be made by participation of the Contractor for design stage. However, actual construction work shall be done by Sub-contractor. Organization Chart Note SPC - Detailed Design Special Purpose Company - Acquisition of approval from related agencies Engineer - Designer Preparation of Tender Document (General Condition and Technical CM/GC Provider Specification) Technical Contractor - Cooperation Execution of Bid for the Contractor - Others Package 1 Package 2 ・・・ Package N - Review of Detailed Design Sub-Contractor Sub-Contractor Sub-Contractor - Determination of construction package - Construction Supervision - Others

Alternative 3 Design-Build System For shortening of implementation schedule and smooth transition from design stage to construction stage, detailed design shall be carried out by the Contractor. Organization Chart Note SPC - Outline Design Special Purpose Company - Preparation of Tender Document (General Condition and Technical Engineer Specification) Outline Design - Determination of construction Supervision package - Execution of Bid for the Contractor - Construction Supervision Package 1 Package 2 Package N - Others ・・・ Detailed Design Detailed Design Detailed Design Construction Construction Construction - Detailed Design - Acquisition of approval from related agencies - Others Source: Study Team

7-4 Table 7-2: Comparison of System of execution of the Construction Work and Supervision Item Alternative 1 Alternative 2 Alternative 3 Characteristic Same system as usual More practical design for Detailed design shall be ODA Loan Project actual construction work carried out by the can be made by Contractor. participation of the Contractor for design stage. However, actual construction work shall be done by Sub-contractor. Quality Assurance Supervision work by the Supervision work by the Supervision work by the Engineer CM/GC Engineer Risk by the No special risk Risk by the Contractor The Contractor takes risk Contractor becomes bigger since his against detailed design. in-charged area becomes bigger. Implementation Implementation schedule Implementation schedule Implementation schedule Schedule becomes longer since becomes shorter since becomes shorter since confirmation at each step is design and construction design and construction required. can be overlapped. can be overlapped. Source: Study Team

7-5 7-3 Cost Estimation

The total project cost is estimated as shown in Table 7-3.

Table 7-3: Total Project Cost Amount Item Remarks (USD) Construction Cost 800,109,713 Contingency for Physical 80,010,971 10% of Construction Cost Contingency for Price Escalation 80,010,971 10% of Construction Cost Detail Design & Supervision 56,007,680 7% of Construction Cost Total Construction Cost 1,016,139,336 TAX & VAT 50,806,967 5% of Total Construction Cost Total Project Cost 1,066,946,302 Source: Study Team

7-6

Chapter 8 Operation & Maintenance Plan

Expressway projects should require securing necessary funds in the project and financial schemes not only for construction cost, but also for operation and maintenance cost according to the appropriate planning for them. This chapter aims to establish necessary frameworks and organizations for the Operation and Maintenance (O&M) tasks, such as maintenance of road surface and main structure, traffic management and toll collection, which shall be indispensable for the feasibility study of this Project, and also their annual funds required. O&M planning for this Project should offer acceptable establishment in Myanmar, corresponding to its PPP scheme and level of maintenance works. Therefore, firstly general schemes of BOT and actual state of O&M in Myanmar will be reviewed, then O&M plan, assumed for this Project will be examined.

8-1 Survey Results on O&M in the Target Country

(1) O&M Contracts for Roads under BOT scheme in Myanmar In 1996, Myanmar introduced legislation for road development under BOT scheme, due to the fiscal shortage. Currently application standards for foreign companies have been stipulated, which allow participation of foreign companies in this sector as well as local enterprises. It mentioned stipulates basically minimum management of road surface with business right acquired through maintenance works and widening of existing roads. Consequently, it does not assume advanced level construction nor management by BOT companies, because constructions and managements of structures over a certain scale are executed by MOC. Meanwhile, long-distance inner-city roads of continuous steric structure assumed in this Project require challenge level construction in the urban area, and enormous construction cost. Moreover, its O&M shall be also at challenge level, due to enormous traffic volume and complicated structure. Therefore, it is difficult to apply the mentioned BOT scheme to this Project.

(2) Status of O&M of Roads under BOT Scheme in Myanmar Study Team observed their status of O&M. Among O&M tasks, those which they recognize their necessity and execute are road surface maintenance and toll collection. Observation on tollgate told that it is necessary to estimate number of booths in accordance with traffic volume and operational efficiency per booth, and to establish lanes specified for vehicle weighting. Additionally, since they take existing BOT toll system and Myanmar Transportation Policy Notes by ADB (2016) into consideration in estimation of toll system and road maintenance cost, this study should provide explanation associated with them.

(3) Toll Pricing of Expressway under BOT Scheme in Myanmar On the other hand, in 2016 ADB complied Myanmar Transportation Policy Notes, which are recognized well among concerned parties of road sector in Myanmar. These explain that the current toll pricing level is quite low as compared with other countries in highway toll and level of road development, and one of issues of road development and O&M level. Then they provide suggestions such as revision of toll rates not only for better road management but also for improvement of transport administration.

8-1

8-2 Study on Structure of O& M Companies Major tasks of O&M companies of expressways are traffic management, O&M and toll collection. Besides them, adding frameworks for corporate secretariat and accounting, they can manage required tasks for O&M business. The following shows an example chart of its minimum organization.

Figure8-1: Organizations Required for Managing Company of YIRR

Administrative Section : General Administration / Human Resource Board of Corporate Communication & CSR

Directors Finance & Accounting Section : Budgeting / Accounting / Contracting

Traffic Surveillance : Patrol / Action team for Emergency case /Information Provision Monitoring of Traffic / Surveillance Managing Section /Information Provision to Road Users Director : Daily Inspection / Routine Maintenance/ Maintenance Section Repair/Periodic Maintenance Facility Maintenance

Toll Collection Section : Plan of tollage, Collection of tolls, Calculation of collected tolls

Source: Study Team

8-3 Study on Means of Toll Collection

1) Toll Pricing Pricing of toll road is generally determined by combination of Distance and Vehicle Type. Following table shows comparison of features by Distance category:

8-2

Table8-1: Features of Toll Road Pricing by Distance Category

Category Advantage Disadvantage Distance based rate:  Fair pricing according to  Complicated toll system Combination of data at entrance/ travel distance  Required facilities and lots for exit  Usage avoiding traffic toll collection at all entrances congestion in a pinpoint and exits manner (Optimal distribution  Time consuming in issuing of traffic with parallel free tickets at entrances and in roads) collecting toll at exits  Many merging/ diverging points  Unsuitable for small road network Zone (Area):  Simple toll system  Unfair pricing for not Divided entire route according to  Toll collecting only at reflecting travel distance: *Toll actual usage state (e.g. Economic entrances established by each zone zone)  (if not permitted spanning  Installation of toll gates multiple zones) required in main lanes  Unsuitable for small road network Flat rate  Plain and simple toll system  Unfair pricing for not  Required facilities and lots for reflecting travel distance toll collection only at entrances  Limited distribution of traffic  Less merging/ diverging points with parallel free roads  Unsuitable for large road network Source: Study Team

Next, comparison of features by Vehicle type category is summarized as follows:

Table8-2: Features of Toll Road Pricing by Vehicle Type Category

Category Advantage Disadvantage Small-choice  Simple toll system  Unfair burden of expense for road (integrated)  Time saving in toll collection damage e.g.: Flat rate  Inflexible approach to specific vehicle e.g.: Large/ Regular size type (reflecting policy) Many-choice  Fair burden of expense for  Complicated toll system (diversified) road damage  Time consuming in toll collection e.g.: Number of axes  Flexible approach to specific

8-3

e.g.: Weight vehicle type (reflecting policy) Source: Study Team

2) Toll Collecting Methods The comparison of features of toll collecting methods is summarized as follows:

Table8-3: Features of Toll Collecting Methods (General) Method Advantage Disadvantage Cash collecting  Plain and simple toll and payment  Risks entailed in cash management ＊In all lanes system  Many manpower  Minimum facilities  Lands required for tollgates  Job creation  Lower capacity for lengthy processing time ETC  No need for cash management  Highly reliable system ＊In all lanes  Required gantries only, without  Required payment system ＊Various types tollbooth  Required facilities according to the of system  Minimum manpower system  Higher capacity with shorter  System required for promotion of processing time ETC Mixed  Workable in transition from Cash  Required payment system ＊Cash collecting collecting to ETC  Required cash management and ETC  Available at failures of ETC  Required facilities both for Cash and  Operation according to penetration of ETC ETC  Many manpower  Job creation  Lands required for tollgates Source: Study Team

As MOC has not made its intension to introduce ETC system, future perspective is uncertain. Thus, this Study, from a profitability standpoint in Myanmar, where tollgate staffs are still available at low cost, should avoid cost increase with installation of equipment required for ETC. Given the fact, this Study assumes that ETC should be introduced when road network will be expanded (including link with other road administrators) and/ or traffic volume will increase, therefore employs toll collecting in cash as well as other tollway projects in Myanmar.

8-4 Study on Traffic Management

8-4

Since traffic management in Myanmar is in the scope of work of the Police exclusively, neither road administrators nor BOT companies execute periodic traffic patrols and other tasks. Therefore, this Study follows this concept and considers traffic management as one of future issues along with weight-in-motion system and concerns over detaining vehicles in tollgates.

8-5 Estimation of O&M Cost Annual O&M cost is estimated to secure administration fees for the SPC company and expense for O&M tasks with the reference of the urban expressways in Southeast Asia and Japan

Table8-4: Annual Cost Required for O&M of YIRR

Item Annual Cost (million JPY) Manpower Cost Office Rent Toll Collection Approx. 1300 Traffic Management O&M(Road and Structure) Source: Study Team

8-5

Chapter 9 Environment and Social Consideration

9-1 Outline of related Laws and Regulation in Myanmar

(1) Legal and Administrative System of Myanmar

1) Ministry of Natural Resources and Environmental Conservation (MONREC)

The government body with primary responsibility for ensuring and promoting soundness of the environment in Myanmar is Ministry of Natural Resources and Environmental Conservation (MoNREC), although other Ministries such as Ministry of Agriculture, Livestock and Irrigation also share a certain level of responsibility. At the time of governmental restructuring in April 2016, MoNREC was reformed from Ministry of Environmental Conservation and Forestry (MoECAF).

MoECAF was reformed in September 2011 from the Ministry of Forestry to be the focal point and coordinating agency for environmental management. While the role of MoECAF is not specified by law, responsibility of its predecessor (i.e. Ministry of Forestry) is stipulated in the Forest Policy (1995) as: forest land management; environmental protection; timber extraction; and forest policy in Myanmar. Since then, there has been only one modification to the structure of the Ministry, which is an addition of Environmental Conservation Department (ECD) established in October, 2012 based on Environmental Conservation Law. The ECD is the department responsible for managing the EIA (Environmental Impact Assessment) process. The role of MONREC in environmental conservation can therefore be considered greater than before. The Organization chart of MONREC is shown in the Figure

Figure 9-1: Organization Chart of MONREC

EIA Section

Source: Study Team

2) Yangon City Development Committee (YCDC)

As for Yangon City area, the City of Yangon Development Law was enacted in (2013) and ordered the formation of the YCDC in order to carry out the development works of Yangon City. The Law stipulated that YCDC should lay down the policy, give guidance, supervise or implement the following duties and

9-1 responsibilities.

In addition, the Law stipulates that notwithstanding anything contained in the existing City of Yangon Municipal Act, State Housing and Town and Country Development Board Act, and other existing laws, powers relating to the formulation and implementation of civil projects, and establishment of new towns and administration of town lands within the limits of the Yangon City, shall vest in YCDC.

(2) Related Laws and Regulations

There are several laws, regulations, institutions and guidelines etc. relating to the environmental impact assessment in Myanmar. The outline is shown in following table.

Table 9-1: Outline of the Related Laws and Regulation

Classification Related Laws and Regulation Laws and Regulation of • Environmental Conservation Law, 2012 General Environment • Environmental Conservation Rules, 2014 • Environmental Conservation Law, 2012 Laws and Regulation of • Environmental Conservation Rules, 2014 Environmental Impact • Environmental Impact Assessment Procedures, 2015 Assessment • Myanmar Investment Commission, Notification No. 50, 2014 • National Environmental Quality (Liquid Discharges) Guidelines , Laws and Regulation of 2015 Water Resources and • The Water Power Act, 1927 (Burma Act 11, 1927) Water Contamination • The Underground Water Act, 1930 • The Conservation of Water Resources and River Law, 2006 Laws and Regulation of • Environmental Quality Standard (Air Emissions), 2015 Air Pollution Laws and Regulations of • The laws etc. related to climate change do not exist in December Climate Change 2016. Laws and Regulation of • The Forest law, 1992 Forest Management and • The Protection of Wildlife and Conservation of Natural Area Law, Biodiversity 1994 • Territorial Sea and Maritime Zone Law, 2008 (1977, 1997 Laws and Regulations of amendment) other Natural Resources • Law relating to Aquaculture , 1989 Management • Marine Fisheries Law,1990, • Freshwater Fisheries Regulation,1993 Laws and Regulation of • The Protection of Preservation of Cultural Heritage Region Law, 1998 other Environmental • The Prevention of Hazard from Chemical and related Substances Law, Conservation and 2010 Environmental Impact • National Disaster Management Law, 2013 Assessment • Myanmar Electricity Law, 2014 • The laws etc. related to resettlement do not exist in December 2016. • The Upper Burma Land and Revenue Regulation, 1889 • The Lower Burma Town and Village Lands Act 1899 (Burma Act IV, Laws and Regulations of 1898) Land Acquisition and • The Land Acquisition Act, 1984 Resettlement • The Land Nationalization Act, 1949 (1953 rev.) • Vacant, Fallow and Virgin Lands Management Law, 2012 • Vacant, Fallow and Virgin Lands Management Rules, 2012 Laws and Regulation of • The City of Yangon Development Law, 1990 Environment in Yangon • Yangon City Development Committee (YCDC) Notification No.6,

9-2 Classification Related Laws and Regulation city 1999

Source：IGES (2016)

(3) Environmental Impact Assessment (EIA) Procedures (2015)

The EIA Procedures has approved by the cabinet in January 2016. It stipulates the conditions under which EIA is required and the steps to be followed in conducting and assessing the EIA. Under the Procedures, the Ministry sets an Environmental Conservation Committee which is to give recommendations from an environmental point of view whether to approve the EIA reports or not. IEE and EIA include an Environmental Management Plan (EMP). The Procedures also include a clause for public participation in implementing the IEE, EIA, and EMP. It also mentions the notion of precautionary principle and touches on climate change, and also includes Strategic Environmental Assessment. Procedure of EIA and IEE is as following figure.

Figure 9-2: Procedure of EIA

Source: ECD

(4) Criteria for EIA and IEE

According to the requirements of IEE and EIA described in “Environmental Impact Assessment Procedures” issued in 2016, the construction of bypass more than 50km is required EIA. The category of requirement of IEE or EIA regarding the bridge and road is shown in Table 9-2. The total road length of this study is around 25km. Therefore it is expected that IEE study will be required.

9-3

Table 9-2： Criteria for IEE/EIA

Criteria for IEE Type Criteria for EIA Type No. Type of Economic Activity Economic Activities Economic Activities Expressways and Highways Over 2km and also less than 1 (ASEAN Highway Standard；new Over 50km 50km construction or widening) Other Roads (state, region, urban; Over 50km and also less 2 Over 100km new construction or widening) than 100km Road Improvement (upgrading All activities where the 3 from seasonal to all weather 50km or less Ministry requires that the surface, widening of shoulders) project shall undergo EIA Source: Environmental Impact Assessment Procedure (2015)

9-2 Scoping Results

(1) Alternative Analysis

The alternatives assessment is based on three main categories: (a) Environmental and Social, (b) Economy and (c) Urban Development factors. Comparison between condition of zero option (without project) and implementation of project (with project) is shown in following table.

Table 9-3： Project Alternative Assessment

Dimension Zero option With project Environmental and Social • Limit of air and water • Air pollution would be pollution control increased due to increase of • Limit of impact level of noise traffic volume. and vibration • Temporary impacts on water • More traffic jams especially quality of some creek along in junction areas of the the proposed route will be existing road. affected due to construction • Land use and acquisitions works. will remain as existing • Allowable traffic volume and situation the load carrying capacity of existing road will be improved. • Land acquisition and resettlement of affected people are required. Economy • Limit of economic • Economic development by development create less of effective transportation employment opportunities service. • More employment opportunities by economic development Urban Development • Limit future urban • Contribution to future urban development development by improvement of technology Source: Study Team

9-4 (2) Scoping Results

In this Leopold Scoping Matrix, rating A, B and C indicates “negative impacts” and “no mark” indicates “few negative impacts”. Detailed explanation of rating A, B, C and no marks are indicated in foot note under each table. The positive impact is indicated as “＋” and the negative impact as “－”.

9-5 Table 9-4: Scoping Matrix

Pre/ During Construction Phase Operation Affected Activities

Settlers

Overall Rating

related building structures related Increasing influx of of influx Increasing

properties Impact Items Loss and acquisition Land of Appearance/ Occupancy of of Occupancy Appearance/ and Roads Construction of of Construction other and Bridges Road, facilities related No. and Equipment Construction of Operation Vehicles RestrictionTraffic in construction area construction workers, construction of Influx of base camp 1 Air Pollution B- B- B- 2 Water pollution B- B- B- B-

3 Waste B- B- B- B- 4 Soil contamination B- B- B- B- B- Noise and Vibration

Pollution 5 B- B- B- B- B- 6 Ground Subsidence 7 Odor B- B- 8 Bottom Sediment 9 Protected Area 10 Ecosystem C C C C 11 Hydrology B- B- B- B- Natural

Environment 12 Topography and geology 13 Involuntary resettlement A- A- 14 The poor C C 15 Indigenous and ethnic people C C Local economy such as employment and 16 B- B- B+ B+ livelihood 17 Land use and utilization of local resources B+ B+

18 Water Usage C C 19 Existing social infrastructures and services B- B- B- B+ B+ Social institutions such as local decision 20 C C making institutions Environment 21 Misdistribution of benefit and damage C C

Social 22 Local conflict of interests B- B- 23 Cultural Heritage C C 24 Landscape C C C C 25 Gender 26 Right of Children 27 Infectious diseases such as HIV/AIDS B- B- B- 28 Labor environment (including work safety)

29 Accidents B- B- B- B- B-

Other 30 Cross Boundary impacts and climate change Note) Rating: A: Serious impact is expected. B: Some impact is expected. C: Extent of impact is unknown (serious impacts are not expected, but survey and analysis shall be done) No mark: Few impacts are expected. Detailed quantitative survey is not necessary. The positive impact is indicated as “＋” and the negative impact is non-reflected. .Source: Survey Team Source: Study Team

9-6 Table 9-5: Reasons for Scoping

Impacted Rating No Reasons of the Rating Item on Pre/ During Operation

JICA Guidelines Construction Phase 1 Air Pollution Construction phase: Temporary negative impacts are expected on air quality due to exhaust gas generated from construction machines and equipment. B- Operation phase: No serious impacts are expected 2 Water pollution Construction phase: Turbid water may be generated by piling. Additionally Organic polluted water may be discharged from base camp. B- Operation phase: No serious impacts are expected 3 Waste Construction phase: Construction waste such as waste soil and cutting trees are expected. Additionally domestic waste and night soil may be generated B- from construction base camp.

Operation phase: No serious impacts are expected 4 Soil contamination Construction phase: Waste water generated from piling could cause soil contamination if waste water is discharged without sufficient treatment. Pollution B- Operation phase: No impacts are expected 5 Noise and vibration Construction phase: Noise level could temporarily be higher due to construction machines and equipment. B- B- Operation phase: Noise generation is expected because of the increase in traffic number and travelling speed. 6 Ground subsidence Construction and operation phase: No impacts are expected since activities

which cause ground subsidence not expected. 7 Offensive Odor Construction phase: Some impacts are expected to be affected due to B- operating of construction equipment. Operation phase: No impacts are expected 8 Bottom Sediment Construction and Operation phase: No impacts are expected. 9 Protected area Construction phase: No impacts are expected because the proposed does not need to pass forest Reserve. Operation phase: No impact is expected.

10 Ecosystem Construction phase: As the result of field survey, the proposed is along the existing road and no need to pass reserved forest. But cutting of some shady C trees is required.

Environment Operation phase: No large scale impact is expected.

11 Hydrology Construction and Operation phase: Construction of bridges may change B- B- hydrological situation of the rivers. Natural 12 Topography and Construction and operation phase: Considerable topography and geological geology sites are not located in the project area, thus no impact is expected.

13 Involuntary Pre-Construction phase: About 544 resettlers are predicted on the corridor resettlement A- of impact. Operation phase: No impact is expected 14 The poor Pre-Construction phase: Impacts will be assessed based on the feature

C C of the local society around the project site. Operation phase: Few impacts are expected 15 Indigenous and Pre-Construction phase: Impacts will be assessed based on the feature of the ethnic people C C local society around the project site. Operation phase: Few impacts are expected Local economy such as Social Environment 16 Pre-construction phase: Livelihood of residents and farmers may be employment and affected by acquisition of working place and agricultural area. B- B+ livelihood Operation phase: Revitalize by influx of peoples and things 17 Land use and B+ Pre-construction phase: Few impacts are expected.

9-7 Impacted Rating No Reasons of the Rating Item on Pre/ During Operation

JICA Guidelines Construction Phase utilization of local Operation phase: Revitalize by influx of peoples and things

18 Water usage Construction phase: Some water pipe lines will be affected by the project due B- to construction work of the project. Operation phase: Few impacts are expected. 19 Existing social Pre-Construction and Construction phase: Infrastructures and Some houses and public structures may be affected by land acquisition for services B- B+ decrease of road width. Operation phase: Positive impacts are expected due to improvement of access to public institutes. 20 Social institutions Construction and operation phase: Some public institution will be affected. such as local But significant impacts are not expected, since local decision making institute C decision making represented by village, township and state will continue after the road institutions construction. 21 Misdistribution of Construction and operation phase: Misdistribution of benefit and

benefit and damage damage caused by the road construction is not expected. 22 Local conflict of Construction phase: Local inhabitants and local authorities may request to interests B ensure job opportunities as construction workers. Operation phase: No impact is expected 23 Cultural heritage Pre-Construction and Construction Phase: Some monastery entrances, B- wall and building of some pagoda will be affected. Operation phase: No impact is expected 24 Landscape Construction phase: Few impact is expected C C Operation phase: There are no law-based designated landscape areas around project area. 25 Gender Construction and operation phase: Negative impacts specified for

women are not expected. 26 Right of children Construction and operation phase: Negative impacts specified for

children are not expected. 27 Infectious diseases Construction phase: Infectious diseases such as STDs are possible to be such as HIV/AIDS spread due to inflow of construction workers. Furthermore, alteration to ground by cut land and filling may provoke to provide a habitat of mosquito B- that possibly transmits dengue fever.

Operation phase: No impact is expected. 28 Labor environment Construction phase: Construction work environment needs to be considered in accordance with relevant laws and regulations. Operation phase: No impact is expected. 29 Accidents Construction phase: Construction vehicles may use existing local road near residential areas, thus number of traffic accident may increase. B- B- Operation phase: Risks of traffic accidents on the new road is expected due to increase of travelling speed 30 Cross boundary Construction phase: Significant deforestation is not expected on this Others impacts and climate project, and number of construction machines is limited, thus few impacts are change expected.

Operation phase: No serious impacts are expected. Source: Study Team Note) Rating: A: Serious impact is expected. B: Some impact is expected. C: Extent of impact is unknown (serious impacts are not expected, but survey and analysis shall be done) No mark: Few impacts are expected. Detailed quantitative survey is not necessary. The positive impact is indicated as “＋” and the negative impact is non-reflected.

9-8 9-3 Outline of expected Involuntary Resettlement and Land Acquisition

(1) Target Area

Based on the proposed design of Yangon Inner Ring Road (East Section) by YUTRA 2, the study area was set three sectors: (1) Ramp areas which need 30m or 46m width (consider as reference), (2) Except Ramp Areas which require 23 m width along proposed route of the project, and (3) New Alignment Areas that aim to improve existing alignment. The survey team also carried out the necessary assessments for environmental and social considerations work along the proposed route of Yangon Inner Ring Road (East Section). The map of target area is as following figure; Figure 9-3： Location of Major Activities of the Project

Source: Study Team

9-9 (2) Expected Affected Unit  Ramp Area (within 30m or 46m width consideration: consider as reference)

Total 639 units (520 units for Ramp Area, 46 units for Except Ramp Area, 73 units for new Alignment Area) are expected to be affected. Detail information is as following tables;

Table 9-6：Expected PAUs at Ramp Area

PAUs N Item o Stand Six alone One-st Two Three Four Five storie Seven Other Total unit oried storied storied storied storied d storied

1 Section 1 0 0 0 0 0 0 0 0 0 0 2 Section 2 16 4 29 0 0 0 0 0 25 74 3 Section 3 0 9 53 0 0 0 0 0 27 89 4 Section 4 0 14 31 1 0 0 2 5 54 107 5 Section 5 0 7 28 1 0 2 0 0 51 89 6 Section 6 0 0 0 0 0 0 0 0 0 0 7 Section 7 0 22 5 0 0 0 0 0 26 53 8 Section 8 3 7 0 0 2 0 0 0 69 81 9 Section 9 0 0 0 0 0 0 0 0 27 27 Total 19 63 146 2 2 2 2 5 279 520 Note 1: ‘Other’ means small house, stall, street vendor, wall, entrance and market. For more detail, refer to attachment 2. Note 2: Road width of Section 1 is considered as 30m, the other Section is considered as 46 m. Source: Study Team

 Except Ramp Area

Table 9-7: Expected PAUs at Except Areas

PAUs No. Name of Road Township Street Other Total Vendor 1 Yazadirit Botahtaung 3 0 3 2 Upper Pazundaung Pazundaung 13 3 16 3 Upper Pazundaung Mingalar Taung Nyunt 2 2 4 4 Thanthumar Thingangyun 12 1 13 5 Thanthumar South Okalapa 4 1 5 6 Thanthumar Mayangone 0 0 0 7 Thudhammar North Okalapa 3 1 4 8 Thudhammar Mingalardon 0 1 1 Total 37 9 46 Note: Other means entrances and wall etc Source: Study Team

9-10  New Alignment Area

Table 9-8: Expected Project Affected Units at New Alignment Areas

N Item Two Five Eight Residenti Other Total o. storied storied storied al Land 1 Location 1 3 1 1 2 0 7 2 Location 2 0 0 0 0 61 61 3 Location 3 0 0 0 0 5 5 Total 3 1 1 2 66 73 Note: ‘Other’ means small house, stall, street vendor, wall, entrance and market and staff’s house. Source: Study Team

(3) Expected Affected Persons and Households

The number of possible affected households was estimated based on the number of window of each affected buildings. The survey team marked one (1) window as one (1) household and its family member was set as four (4) persons. Following Table shows expected total number of affected persons due to improvement facilities caused by the project.

Table 9-9: Expected Project Affected Households and Persons

Possible Possible N Item Affected Affected Remark o Households Persons Ramp Areas (Consideration of within 30m or 46 m width) 1 Section 1 0 0 30m width 2 Section 2 73 292 46m width 3 Section 3 114 456 46m width 4 Section 4 217 868 46m width 5 Section 5 92 368 46m width 6 Section 6 0 0 46m width 7 Section 7 53 212 46m width 8 Section 8 114 456 46m width 9 Section 9 26 104 46m width Grand Total 689 2,756 Except Ramp Areas (Consideration of within 23 m width along proposed route) 1 Botahtaung 3 12 2 Pazundaung 13 52 3 Mingalar Taung Nyunt 2 8 4 Thingungyun 12 48 5 South Okalapa 4 16 6 Mayangone 0 0 7 North Okalapa 3 12 8 Mingalardon 0 0 Grand Total 37 148 New Alignment Areas 1 Location 1 34 136 2 Location 2 60 240 3 Location 3 5 20 Grand Total 99 396 Total 136 544 ( ) if ramp area (825) (3,300) will be included Source: Study Team

9-11

(4) Results of Evaluation

There are about 119 affected buildings at except ramp area and new alignment area along 24.9 km section based on the survey with satellite photograph and actual ground checking. Some of them may include no households such as warehouses, livestock and poultry houses. However if all of these are households, about 544 people are expected to be affected. The number was calculated assuming that a total of 4 peoples, including parents and 2 children (from Myanmar total special fertility rate 1.96 (2012)) are living together 136 households (37+99) × 4 peoples = 544 peoples). It is assumed that several families live together in one house; therefore the number of affected people will be increase further.

9-4 Required Actions for Implementation of the Project

(1) Scope of Work (SOW) for Environmental Impact Assessment

Based on the results of this survey, it was recognized that it is necessary to investigate the extent of the influence in more detail. Before this project is started, implementation of additional surveys covered the following items is proposed.

1) Scope of the Survey

The Environmental Impact Assessment survey is conducted based on the laws in Myanmar such as the “EIA Procedures (2015)” and JICA Guidelines for the project planned route (Yangon Inner Ring Road) and its surrounding areas.

2) Period of the Survey

Approximately 8 months

3) Acquisition of the baseline data on environmental and social conditions

During the survey, through the acquisition of the primary and secondary data, site investigation and interviews with residents and related stakeholders; understand the current situations to acquire the baseline data.

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Table 9-10: Acquisition of the Baseline Data

Pollution Natural Environment Social Environment  Air pollution  Protected area  Involuntary resettlement*  Water  Ecosystem  The poor pollution  Hydrology  Indigenous and ethnic people  Waste  Topography and  Local economy such as employment and  Soil geology livelihood contamination  Land use and utilization of local resources  Noise and  Water Usage vibration  Existing social infrastructures and services  Ground  Social institutions such as local decision subsidence making institutions  Odor  Misdistribution of benefit and damage  Sediment  Local conflict of interests quality  Cultural Heritage  Landscape  Gender  Right of Children  Infectious diseases such as HIV/AIDS  Labor environment (including work safety) * The TOR of “Involuntary resettlement” and “Land use” is mentioned in the next chapter. Source: Study Team

4) Measurement of Impacted Items and other Investigation Methods

Before conducting the survey, clarify the survey method, policy, analysis methodology, parameter and measurement location, etc. The baseline survey and analysis methodology for each impacted item is as follows.

Table 9-11：Baseline Survey and Analysis Methodology

Impacted Item Baseline Survey and Analysis Methodology  Site measurement：10 points (Sensitive receptors such as near school and monastery)  Item：Carbon Monooxide (CO), Nitrogen dioxide (NO2), Air pollution Sulphur dioxide (SO2), Total Particulate Matter (TPM), Particulate Matter (PM10)  Frequency：One time (24 hours) (Acquire the secondary data from other project as necessary)  Site measurement: Crossing Creeks  Item：(pH, Temperature, Turbidity, Total coliform bacteria, Suspended Solid (SS), Biochemical Oxygen Demand (BOD),

Water Pollution Dissolved Oxygen (DO)  Frequency：Two times (Rainy season: 1＋Dry season:1） (Acquire the secondary data from other project as necessary)

Pollution Waste Data Collection (Conduct site survey as necessary) Soil contamination Data Collection (Conduct site survey as necessary)  Site measurement：10 points (Sensitive receptor such as near school and monastery) Noise and Vibration  Item：LAeq (10minutus, daytime), LV10  Frequency：One time (Acquire the secondary data from other project as necessary) Ground Subsidence Data Collection (Conduct site survey as necessary) Odor Data Collection (Conduct site survey as necessary)

9-13 Impacted Item Baseline Survey and Analysis Methodology Sediment quality Data Collection (Conduct site survey as necessary) Protected Area Data Collection (Conduct site survey as necessary) Data Collection (Conduct site survey as necessary) ＜Site Investigation (Draft)＞ Ecosystem Confirm habitat of flora and fauna, ecosystem and rare species. Confirm with IUCN Red list etc. Hydrology Data Collection (Conduct site survey as necessary) Natural Topography and

Environmental Data Collection (Conduct site survey as necessary) geology Involuntary Investigation in RAP (Refer next chapter for the contents) Resettlement The poor Data collection, interview, public consultation Indigenous and Data collection, interview, public consultation ethnic people Local economy such as employment Data collection, interview, public consultation and livelihood Land use and utilization of local Data collection, interview, public consultation resources Water usages Data collection, interview, public consultation

Existing social infrastructures and Data collection, interview, public consultation services Social institutions such as local Data collection, interview, public consultation decision making institutions

Social Environment Social Misdistribution of Data collection, interview, public consultation benefit and damage Local conflict of Data collection, interview, public consultation interests Cultural Heritage Data collection, interview, public consultation Landscape Data collection, interview, public consultation Gender Data collection, interview, public consultation Right of Children Data collection, interview, public consultation Infectious diseases Data collection, interview, public consultation such as HIC/AIDS Accidents Data Collection (Conduct site survey as necessary) Cross boundary impacts and climate Data Collection (Conduct site survey as necessary)

change Involuntary Investigation in RAP (Refer next chapter for the contents) Other Resettlement Source: Study Team

5) Implementation of Consultation

In the township where the planned route passes, at least two Stakeholder Meetings are conducted at the time of scoping and when the draft final report is prepared. And prepare the meeting minutes. In addition, the conference for the residents is set up as necessary.

6) Preparation of Report  Inception Report  Interim Report

9-14  Draft Final Report  Final Report  SHM (Stakeholder Meeting) Report

(2) Scope of Work (SOW) for Involuntary Resettlement and Land Acquisition

Based on the results of this survey, it was clear that there are 119 buildings on the planned route. Therefore it is possible that about 136 households (544 residents) may be Affected Persons (APs) by acquisition of land. Since it is “Large-scale involuntary resettlement” and can be classified as “Category A” based on the JICA Environmental and Social Consideration Guidelines (2010), preparation of the Resettlement Action Plan (RAP) is required. Before the project start, we propose the survey items and methods of the Resettlement Action Plan including the following contents.

1) Scope of the Survey

Implement the survey aimed at preparing the resettlement action plan based on JICA Guideline (2010), World Bank O.P.4.12 and related laws/regulations in Myanmar such as the Land Acquisition Act (1984) for the project planned routes (Yangon Inner Ring Road) and its surrounding areas.

2) Survey Period

About 6 month

3) Survey Items

The survey items of RAP are as follows. i. Outline of the project ii. Expected impact a) Components and activities that cause resettlement b) Alternatives to minimize resettlement c) Mechanisms to minimize resettlement iii. Purpose (Main purpose of resettlement plan) iv. Socio-Economic survey (Including Census survey and other survey) v. Analysis of the legal framework vi. Analysis of organization and institutional framework vii. Requirements for eligibility of benefits (standards/definitions for deciding a compensable person) viii. Evaluation of loss asset compensation ix. Assessment of resettlement (compensation package etc.) x. Selection and preparation of relocation site (including the alternatives of relocation site) xi. Provision of houses, infrastructure and social services (plan) xii. Environmental management at the relocation site xiii. Participation it the community (PAPs and residents) xiv. Fusion to the host community

9-15 xv. Mechanism of complaint handling xvi. Responsible institution xvii. Implementation Schedule xviii. Cost and financial resources xix. Monitoring and evaluation

4) Preparation for RAP

RAP is carried out based on the approved Framework of RAP (FRAP) as following procedures. (i) The surveyor will support the implementing institutions to implement socialization. Also in order to explain the compensation policy before the field survey and to declare the cut-off date, support the implementing institutions. (ii) The surveyor will analyze the gap be (iii) The surveyor analyzes the gap between the relevant laws in Myanmar and JICA Guideline. And propose the proper method to reduce a gap. (iv) Implement the socioeconomic survey and loss asset survey on all APs who are living in the target areas. (v) In order to determine the compensation rate and transfer cost, implement the re-acquisition price survey of various types of assets such as houses and lands. (vi) Create a draft of implementation schedule, mechanism of complaint handling, monitoring and evaluation of RAP. (vii) Finalize the RAP. Also the summary is translated into Myanmar language. (viii)Disclose the information of the draft and final version of RAP based on JICA Guideline. For the draft of RAP, open to APs before submitting to JICA.

5) Socio-Economic Survey and Inventory of Loss (IOL)

Surveyor implements the socioeconomic survey to gather information from APs. The objective of the socioeconomic survey is to collect the baseline values for APs, and its items are as follows. (i) Information of householder: Name, gender, age, livelihood means, occupation, income, education background and ethnic group. (ii) Information of family living together: Number, livelihood means, occupation, number of school children, literacy rate and gender. (iii) Data on affected houses: Ethnic group, gender of householder, family size, main income and secondary income, elderly, disabled person and poor etc. (iv) Living situation: Access to water, hygiene situation, fuel and power supply etc. (v) Legal position of affected land and building, period as owner. (vi) Request for compensation, relocation site, life rebuilding from APs. (vii) Confirm whether the lands to be expropriated are main livelihood.

Surveyor also implements the survey of the Inventory of Loss (IOL). The data obtained by IOL is used to determine the level of compensation and qualified recipients. The information to be collected is as follows.

9-16 (i) Area of affected lands and its type (ii) Area of affected buildings and its type (Including wells and graveyards, etc.) (iii) Types, areas and numbers of affected crops and trees. (iv) Other losses (e.g. Temporary loss of income, loss of merchant income, etc.) (v) Types and areas of affected public facilities.

6) Replacement Cost Survey

Surveyor also implements the re-acquisition price survey at the same time of socioeconomic survey and IOL. The cost of replacement is assumed to be the cost sufficiently reacquired plus market price. The price decline is not considered. (i) Reacquisition price of houses and buildings. The reacquisition price of houses and buildings includes materials (market price) for rebuilding, transportation cost of materials, wage of the worker, required registration fee and tax, etc. Price calculation is based on the following two points.  Unit price determined by local government (GAD/DALMS)  Unit price used by contractors for similar projects and house of similar structures. (ii) Reacquisition price of lands. The reacquisition price of lands is the sums of market price or land price of the neighborhood and preparation costs of similar land, required registration fee and tax, etc.

7) Members of Survey (draft） Expert of resettlement (more than 15 years’ experience): 1 Field surveyor: 3 Expert of GIS: 1

8) Preparation Report  Inception Report  Interim Report  Drat Final Report  Final Report  Stakeholder Meeting (SHM) Report

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Chapter 10 Economic and Financial Analysis

10-1 Project Cost Estimation

The costs of this Project explained in Chapter 7, and O&M plus renovation costs explained in Chapter 8. Unless otherwise specified, those in this chapter are prices as of 2017.

10-2 Economic Analysis

The following shows EIRR, NPV and B/C calculated from benefits and economic costs:

Table10-1：Result of Economic Analysis EIRR 17.1% NPV(000,000USD) 1,615 B/C 3.14 Source: Study Team

Since EIRR goes over 12%; the specified value of social discount rate, this Project can be feasible.

10-3 Financial Analysis

Result of financial analysis is as follows: The result indicates FIRR of 1.3%, which means that it is difficult to make this Project profitable by private sector alone. Table10-2: Result of Financial Analysis FIRR 1.3% Source: Study Team

10-1

Chapter 11 Effect on Energy Reduction

11-1 Introduction

In order to evaluate the effect on energy reduction by implementing the project, the difference of fuel consumption of the vehicles between “With Project” and “Without Project” is compared. Fuel consumption of vehicles for each travel speed was estimated by National Institute for Land and Infrastructure management (NILIM) under Ministry of Land, Infrastructure, Transport and Tourism (MLIT), Japan, as shown in Table 11-1.

Table 11-1: Fuel Consumption of Vehicles for each Travel Speed Fuel Consumption Average Travel Speed (liter/km/vehicle) (km/h) Car Large Vehicle 5 0.182 0.613 10 0.137 0.514 15 0.098 0.414 20 0.087 0.381 25 0.078 0.349 30 0.071 0.321 35 0.066 0.298 40 0.062 0.278 45 0.059 0.262 50 0.057 0.250 55 0.055 0.241 60 0.054 0.236 65 0.054 0.234 70 0.054 0.236 75 0.055 0.241 80 0.057 0.250 85 0.058 0.262 90 0.061 0.278 95 0.064 - 100 0.067 - 105 0.071 - 110 0.075 - Source: Technical Note of NILIM No.671, 2012

11-1

11-2 Energy Reduction

Energy reduction by the project implementation for Year 2025 and 2035 is estimated as shown in Table 11-2.

Table 11-2: Energy Reduction by the Projec Implementation Year 2025 2035 With / Without Project Without With Without With Average Travel Speed 6 49 4 20 Traffic Volume Car 746,186 746,186 1,282,069 1,282,069 (Vechicle*km/day) Large Vechicle 22,303 22,303 34,926 34,926 Fuel Consumption Car 0.173 0.057 0.191 0.087 (liter/km/vechicle) Large Vechicle 0.593 0.252 0.633 0.381 Car 129,090 42,831 244,875 111,540 Fuel Consumption Large Vechicle 13,230 5,629 22,101 13,307 (liter/day) Total 142,320 48,460 266,976 124,847 (liter/day) - 93,860 - 142,130 Energy Reduction (liter/year) - 34,258,887 - 51,877,283 (ton/year) - 25,694 - 38,908 Energy 1 liter is estimated as 750 gram Source: Study Team 25,694 ton (34,258,887 liter) and 38,908 ton (51,877,283 liter) of energy can be reduced in 2025 and 2035, respectively by implementing the project. Energy consumption per capita in 2014 is 372 kg/year in Myanmar according to the World Bank open data. Amount of energy reduction by the project implementation is equal to that of energy consumption by 69,070 persons in 2025 and 104,591 persons in 2035.

11-2

Chapter12 Study for project implementation under PPP scheme

12-1 Examination of the risk under PPP scheme

(1) Significance and necessity to adopt PPP In Myanmar, it is assumed that although lots of infrastructure should be developed, to meet such huge demands all by its own fund or by ODA would be both difficult considering public fiscal discipline. Besides, in case of public works implemented by the government by its own fund, the government itself shall be responsible for quality, schedule and cost management for each aspect of design, build, operation and maintenance and thus it is probable that the project does not progress as expected due to lack of appropriate organization and capacity of the relevant authority. Furthermore, in ODA projects, design & build and operation & maintenance are divided into the different packages then as is often the case, the duration of the infrastructure might be shorter than expected because of the poor performance of operation & maintenance.

Therefore, development of infrastructure by utilizing fund, technology and knowhow of the private sector under the appropriate allocation of risk and funds between public and private through the adoption of PPP scheme, it is considered that it will ultimately contributes to the social welfare with adequate cost and assured quality of such infrastructure on a long-term perspective.

(2) Examination of models for implementation of PPP projects There are various ways to categorize PPP models depending on implementation scheme and to what extent private is involved with the project. Among the various models, Study team considered the models in which the private investor is involved in the project overall including design & build, operation & maintenance and finance thus the model such like a mere service contract is not considered herein. Then, based on the difference of income source of the private sector, 3 models are identified, namely, Real Toll type, Mixed type, and Availability Payment type. Real Toll Type is to cover the operation & maintenance costs during the project period by toll revenue collected from users only. Mixture Type is to receive the subsidies from the Public in addition to toll revenue. Availability Payment Type is to cover all the costs only by the payment from the Public, subject to the availability of the object of infrastructure.

In the developing countries, Real Toll type such as BOT is commonly preferred, however, due to lack of PPP related laws legislation and established requirement standard for construction and operation & maintenance, project risk may be excessively transferred to the private and as a result, disciplined and assured quality of infrastructure and appropriate operation & maintenance may not be provided due to lack of incentive for the private to do so. In addition, profitability of the Private may not be well secured given that the toll fee shall be kept on moderate level from the viewpoint of social welfare and its public necessity. Due to these characteristics of Real toll type, it has become more popular to adopt Mixed type or Availability Payment type in road projects in Europe, Americas and Pacific countries.

To study the characteristics and risks for the government under the above three types each as well as to examine financial analysis and to select the appropriate business model, Table 12-1 shows comparisons per

12-1 project implementation types and models. The existing road BOT contract in Myanmar is classified as Real Toll Type.

Table 12-1: Comparison of project implementation types Types Government Characteristics / risk for the government expenditure Public works Yes (All)  Project is implemented by the government itself and all risks such as construction period, quality, cost control, interface with other projects during design, construction, operation & maintenance stages shall be managed by the government.  It might be difficult to estimate total government expenditure on a long-term basis required through operation and maintenance Existing BOT No  Risks during design, construction, finance, operation & maintenance are transferred to the private.  It seems that in many projects quality and assured level of operation & maintenance is not achieved and difficult for the government to enforce due to lack of incentives to achieve those by the private. Availability Yes (Fixed amount  The private is responsible for design, Payment in principle) construction, finance, and operation & maintenance under appropriate risk sharing/risk allocation between the PPP government and the private. ・ Role of the government is transformed from a project developer (who retains and manages all the risks) to a long-term purchaser of the services provided by the private.  This model provides certainty as to the expenditure which the government shall incur as Service payment over the full contract period.  This model enables the longer duration of infrastructure by quality and disciplined operation & maintenance under certain

12-2

established requirement and conditions Minimum Yes (it differs in  The private is responsible for design, Revenue every fiscal year construction, finance, and operation & Guarantee during the contract maintenance under appropriate risk period) sharing/risk allocation between the government and the private.  The government guarantees the income of the private up to agreed certain amount. If toll revenue does not reach such amount, the government shall compensate the deficit. On the other hand, if toll revenue exceeds such amount, the government may enjoy such excess  Difficult to foresee the amount to be borne/ gained by the government in every fiscal year during the contract period Viability Gap Yes (Fixed amount)  The private is responsible for design, Funding construction, finance, and operation & maintenance under appropriate risk sharing/risk allocation between the government and the private.  Kind of capital subsidy by the government to support the project become viable.  Agreed fixed amount disbursed during or post construction. Therefore the amount is foreseeable and disbursed in a short term.  However as the amount tends to be huge, it might be difficult to allocate such amount in the government’s fiscal budget Source：Study team

(3) Risk analysis on road business Table 12-2 shows risk factors generally assumed which associated with design, construction, operation & maintenance and financing of road business and analysis of how each risk factor applies in the existing BOT (further demonstrated 4)).

12-3

Table 12-2: Major risk factors associated with road business Risk classification Details Provision in the existing BOT contract (nothing provided unless any remarks ) Land acquisition risk  Construction delay caused by delay  Under responsibility of MOC of land acquisition  Cost increase for land acquisition Risk of obtaining  Construction delay and/or  Under responsibility of MOC except approvals/consents commencement delay of for approval from the Myanmar commercial operation caused by Investment Committee (MIC) delay of obtaining approval/consents associated with construction and/or operation & maintenance Design change risk  Extension of time for completion  MOC has the right to judge and and/or cost increase caused by approve extension of time for design change completion and/or cost increase upon request of the private investor. However, detailed procedures and criteria are not prescribed Construction risk  Liquidated damage and/or contract  Liquidated damage is the amount (period, quality) termination caused by unachieved calculated at total project cost by technical requirement due to lack 0.1% per day. There is no cap. of performance ability and/or  Due date leading to contract occurrence of interface problem termination (long stop date) is not defined Cost overrun risk  Cost overrun caused by misestimate of quantity, cost escalation, design change and/or extension of time Financing risk  Unable to procure fund under (including refinance) expected condition (Debt amount, interest rate and/or repayment condition) Insurance risk  Unable to arrange insurance under expected condition (coverage, insurance cost, etc.) at the time of commercial operation commencement and renewal of

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insurance contract Environmental and  Prolonged environment impact social risk assessment procedure and unachieved requirement (country where the project is implemented, lenders, etc.)  Opposition campaign by residents Network risk  Construction of competitive transportation facility  Delay or cancellation of development of other road network which would have contributed to the increase of traffic volume of the project Demand risk  Actual traffic volume goes below  The private investor has the right to the expected volume and revenue propose to negotiate to revise the falls short of expectation toll sharing ratio in case the private sector suffers from loss of profit Toll fee risk  Initial toll pricing at the time of  Frequency of toll revision and commencement of commercial formula are not defined operation to be set below expectation  Toll pricing at the time of revision to be set below expectation, timing of toll revision become delayed and/or unable to be revised Foreign exchange and  Fluctuation in exchange rates puts remittance risk pressure on the profitability of business (foreign exchange loss, impact on price of imported material, loss of profitability of business denominated in foreign currency)  Unable to make dividend to foreign shareholders due to limitation of remittance to foreign countries Change in law risk  Expected business implementation and continuation become limited

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than originally expected or become impossible due to change in law Seizure and contractual  Unable to implement the project default by government due to seizure of business assets by risk the government  Unable or imposed limitation to implement and proceed the business due to contractual default by the government Force Majeure  Unable or imposed limitation to  Duties of the parties will be implement the project due to suspended during Force Majeure natural hazard (earthquake, period lightning strike, flood, tsunami,  The contract can be terminated in fire, etc.), terrorism, riot, civil war case the Force Majeure continues and war for more than 6 consecutive months Operation &  Actual traffic volume goes below  Detailed standard and requirement maintenance risk the expected volume and/or for operation & maintenance is not (cost, quality, etc.) unable to revise the toll pricing as defined expected due to poor performance  Cure period for contractual default of operation & maintenance by the is not defined. MOC has the right to private investor which does not terminate the contract in case the reach the level required in the default is not cured within a certain contract period decided by MOC Source：Study team

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12-2 Study for project implementation scheme under PPP

(1) Recommended project model Financial Internal Rate of Return (FIRR) is not high enough compared to both the market interest rate of Myanmar. Thus, it is expected that this project is not feasible only by toll fee income, that is, Real Toll type under which the private investor bear the traffic demand /revenue risk like the Existing BOT is not applicable. In addition, it shall be noted that in order to procure project finance on non-recourse basis for this kind of project, lenders strongly request stability and predictability of the project cash flow.

(2) Appropriate risk sharing between the government and the private investor to realize(1) In order that the business model enables financial arrangement by SPC which will be mainly established by private investors and make this project feasible, Table 12-4 shows examples of items which should be stipulated in PPP contract while it is not stipulated in the existing BOT contract, and how each risk items should be shared or properly allocated between the government and the private investor, by taking the risk classification shown in Table 12-2 and points at issue of the existing BOT contract into account. As mentioned hereafter in 12-3, it is essential to define right and obligation of the parties and establish appropriate risk-shared contract scheme in order to procure external funds.

Table 12-3: Proposed risk allocation and items to be prescribed in the contract under Availability Payment model Item Details Financing If there is any fluctuation of base interest rate at the time of the selection of preferred bidder and finance close, it shall be borne by the government.

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Inflation Given the project continues in long term, there should be a mechanism to adjust Service Payment to be in line with increase of operation & maintenance cost during the contract period Foreign exchange Service Payment to be paid in foreign currency (JPY or USD) so that volatility of profit caused by foreign exchange is minimized Traffic volume and toll The government to takes/enjoys revenue upside/downside caused by fluctuation revision of traffic volume and toll revision by adopting Availability Payment based scheme. Insurance The government to take risk of increase in insurance cost at the time of renewal in case the increase is caused by change of market condition Extension of time and Concrete judgement and assessment process associated with design change and change in cost cost increase should be stipulated in a contract Default clause Process associated with cure period and default recognition should be stipulated in a contract Change in law and tax rule Indemnity/compensation by the government in case there is material impact on the profitability of the project due to change in law (including tax ruling) should be stipulated in a contract Level of requirement Major key performance indicators (such as deepness of rutting and roughness of during operation & the surface) should be stipulated in contract to establish Service Payment maintenance period and at adjustment mechanism and handback requirement clearly the time of asset handback Government guarantee The government should provide the private investor with a guarantee associated with fulfillment of the contract obligation such as securing Service Payment Termination Payment Calculation process and method for termination payment in case that termination is caused by Force Majeure and breach by the parties etc. should be stipulated in a contract Source：Study team

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12-3 Prospect of funding for the project

Assuming that the project will be implemented under Availability Payment model as mentioned in 12-2, Study team examined the possibility and conditions of funding for materialization of the project, through interviews with several financial institutions such as Multilateral Development Banks and private banks. It is concluded that, on condition that the project is implemented through assured contractual structure with appropriate risk allocation, they have certain appetite for financing thus certain amount of debt can be procured.

For consideration for debt procurement, views and requirements (those are in line with what Study teams reiterated) of financial institutions are as follows;  Appropriate risk allocation shall be established including mitigation measure of traffic/demand risk such as the adoption of Availability Payment model and assured mechanism of termination regime such as compensation for the private investor and/or financial institutions.  Considering that MMK is a soft currency, foreign exchange risk shall be minimized. For example, Availability Payment model denominated in hard currency is strongly preferred (though the toll income collected from each road user will be in MMK)  Counterparty of the contract on the government side shall be the acceptable, and the government to take political risk (such as change in law including tax regime)  (in case of private financial institutions) in order to minimize repayment risk, debt portion shall be well guaranteed and/or insured.

Taking the above points into account, Study team analyzed the cash flow led by the following assumptions.  Debt/ Equity ratio D:E is assumed to be 8:2 based on interviews through several financial institutions  Debt conditions Debt conditions is studies based on the information from JICA, IFC, ADB and one of major Japanese commercial banks  Return of equity Assumed EIRR to be 15%, considering that that the size of the project will be huge enough and term to be long, involving the investors with design, construction and operation & maintenance. Investors are assumed to be Japanese private firms and funds (public and private), however, MOC itself and/or private investors of Myanmar are also expected.  Project period 30 years including construction period (4years). Refinancing is not considered given debt are repaid within the initial tenor (20 years including 5years grace period )  Insurance/ Guarantee Appropriate insurance premium / guarantee fee for MIGA/NEXI is taken into account both for debt and equity.

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 Availability Payment Based on the above assumptions, amount of annual Service Payment (denominated in JPY) which shall be paid by the government is calculated.

The cash flow implies that, in terms of the project scheme, it would be feasible conceptually, however, given the size of CAPEX required for the project, it would be difficult to procure all only by debt and equity under PPP scheme. Further, it is also deemed that the amount of the government expenditure as required for the annual Service Payment would be quite huge. Considering the above, Study team proposes to reduce the scope of the project originally contemplated under PPP, in order that the project become more feasible and bankable. Namely, it is recommended that the part of construction of the road to be implemented as public works utilizing Yen Loan (for which cost of finance much lower) so that the total CAPEX can be reduced. Then, construction of the remaining part as well as operation & maintenance for the road entirely (including proposed Yen Loan part) to be implemented under PPP scheme. This proposal is intended to set up a project scheme in order both to minimize the government expenditure in a long-term basis and to motivate private sector to participate in the project.

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Chapter 13 Planned Project Schedule

13-1 Contract packages

This project is to construct the viaduct type motor way in Yangon. The project is planned to be divided into private funded portion and Yen loan portion. Yen loan portion managed by MOC.

13-2 Implementation schedule

MOC contracted International Finance Corporation (IFC) to select the private company and wish to start the construction as early as possible. The schedule below is the case when construction work will start at the beginning of 2019. Table 13-1: Assumed Project Implementation Schedule

2019 2020 2021 2022 2023 2024 2025 2026 2027 備考 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Preparation work Contract Detail design EIA Land acquisition Construction (Yen loan portion) Selection of the contractor Construction Construction（Private fund portion） Selection of the contractor Construction Completion Completion完工 O&M Source: Study Team

1) Schedule of actions considering social and natural environment According to Myanmar EIA Procedure (2015) construction and expansion of the approximately 25 km main road is classified as the project to which IEE is required.. The period required for IEE implementation (from selection of a consultant to completion of the report) is assumed to be about for 6 months. Although it is not stipulated by law of Myanmar, preparation of RAP is required during these six months as resident relocation is expected. A survey on RAP for 500 households with about 140 households is also estimated to be taken for about 6 months. At the same time as the start of IEE · RAP, necessary procedures for the Ministry of Natural Resources and Environmental Protection are also started. According to the provisions, permission will be issued within 60 business days after the submission of IEE (about 3 months later). For this reason, the schedule for environmental and social consideration is assumed to be taken for about 6 months from the start of the IEE / RAP survey to the preparation of the report, and then for 3 months for obtaining permission thus for 9 months in total. However, in recent years, delay of licensing approval related to environmental and social considerations has become a big problem, and in many cases, the procedures of this country have never been completed as prescribed. Therefore, it is considered that 1 to 2 years are necessary in reality.

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2) Detail design The detailed design of the about 24km long viaduct structure road is necessary thus standardization is required to reduce the construction and the future O&M costs

3) Procurement of the contractor Private portion is implemented voluntarily by private company. On the other hand, procurement of contractors for Yen loan portion is conducted by MOC in accordance with the "ODA loan project procurement guideline (JICA April 2012). . 13-3 Risk of delay in project implementation

There are a variety of risks causing stagnation or delays in project to be implemented. Table 13-2 shows the results of a study of risk factors that may cause delays along with possible countermeasures.

Table 13-2: Risks for delay in the project and countermeasures No. Reason for delay Countermeasure • Select experienced consultants Experience of bridge study and/or bridge design in Myanmar, design experience of large scale bridge and 1 Delay in detailed design Japanese advanced technology proposal capabilities will be required to the consultant. • Secure full collaboration with stakeholders 2 Land acquisition • Scope of Myanmar government • Secure sufficient communication with agencies in charge of land acquisition Although the large-scale land acquisition will not be required (Category A in JICA guideline), the notice to the organization concerned is required regardless of an acquisition scale in advance. • Secure experienced consultants to help the tender Experience of tender assistance on Japan ODA Project and ability to make proper evaluation for contractor’s tender documents will be required to the 3 Selection of contractors Consultant. • Contractors who have experience on urban area construction as well as bridge construction and have knowledge about local conditions. • Secure a budget that fully covers construction costs • Select experienced contractors 4 Construction schedule

Source: Study Team

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Chapter 14 Technical Advantage for Japanese Contractor

14-1 Expected Scheme for involvement to the Project by Japanese

Contractor

Myanmar Government is considering implementing this Project by private involvement scheme, such as BOT/BTO. In order to select contractor by fair way, MOC considers to make agreement with IFC and to carry out tender. JFE Engineering Corporation and Marubeni Corporation plan to bid this tender.

It is considered characteristic of the Project is to construct urban expressway along very congested existing road. Japanese Contractors has many experiences to construct at very congested area, such as Tokyo and Osaka, with consideration of exiting traffic, therefore, it is expected that the Japanese Contractors or Consultants can involve the Project.

14-2 Advantage of Japanese Contractor for execution of the Project

(Technical and Financial)

(1) Technical Advantage by Japanese Contractor

1) Introduction

As mentioned in previous chapter, characteristic of the Project is to construct expressway along existing road. Planned road has many traffic, thus, it will be very important appropriate managing for existing traffic and reduce traffic congestion during construction. Construction item which occupy land as construction yard is to construct foundation and sub-structure, especially, pile cap. Therefore, Japanese Technology which can construct foundation at very narrow space can be applicable to the Project. Moreover, influence to the existing traffic can be reduced if traffic can be opened under viaduct immediately after erection of superstructure.

Japanese Technologies which have above mentioned characteristic are introduced from next chapters. Study of these technologies will be carried out at next step which carry out topographical investigation.

2) Rotary Penetration Steel Pile

This is a Steel Pipe Foundation in which a helical steel plate (Wing) is welded to the tip of the steel pipe. The pile is then rotated so that it screws into the ground.

It obtains a large bearing force because of the base enlarging effect of the Wing. And, due to the penetration method, there is no excavated soil at the site. Therefore, it will be possible to employ eco-friendly construction with no emissions, low-vibration and reduce the number of piles. This technique generates no emission, low vibration and low noise, therefore, is considered as eco-friendly construction method. In addition, it is possible to construct at narrow space. This technique can show effectiveness especially, at very congested area. This technique has been applied not only Japan but also other countries such as Vietnam and Uganda for flyover construction project inside city area by Japanese ODA. Therefore, it is considered this technique has

14-1 competitiveness in international market. Figure 14-1： Image of Rotary Penetration

Source: Pamphlet of NS Ecopile

Figure 14-2： Photograph of Rotary Penetration Steel Pile (Left: Installation Machine, Right: Tip of Rotary Penetration Steel Pile)

Source: Pamphlet of NS Ecopile

3) PC Well

The PC Well foundation is comprised of precast concrete cylinders (Circular or Oval shape). Each precast concrete cylinder is connected to the adjacent cylinder by a Post-tension method after they are placed at the site. After placing precast concrete block and connecting them to each other, excavation work is carried out and they are compressed into the ground.

This technique is very effective, especially inside city, since, it is possible to construct large diameter pile (up to D=8m), construct small size foundation by Steel Pipe Socket Connection Method described later. This technique can construct at narrow space, therefore, can show effectiveness especially, at congested city area. This kind of construction work will be required not only Japan but also other countries. Therefore, it is considered this technique has competitiveness in international market.

14-2 Figure 14-3： Sketch and Photograph of PC Well

Source: HP of Nippon Hume Corporation Ltd.

Source: HP of Kanto Regional Development Bureau, Ministry of Land, Infrastructure, Transport and Tourism

4) Steel Pipe Socket Connection Method

The Steel Pipe Socket Connection Method is a jointing technique of inserting a Steel Column into a Steel Pipe Socket which is constructed at the top of the foundation, and filling it with concrete. It is possible to reduce the construction period because it omits the Pile Cap and Anchor Frame used in the conventional method. Figure 14-4： Sketch and Photograph of Steel Pipe Socket Connection Method

Source: Investigation Report by MLIT named "solidification construction by quick construction method for Kosaka intersection"

Since conventional Anchor Frame connection method between steel column and concrete foundation is very complicated work, it is required long working time at site. This technique can reduce working time at site, therefore, this technique has effectiveness to apply especially flyover and viaduct construction project inside city. This kind of construction work will be required not only Japan but also other countries. Therefore, it is considered this technique has competitiveness in international market.

14-3 5) Composite Deck Slab

This is new type of deck slab structure composite of steel structure and concrete structure. Bottom of the composite deck slab is covered by steel plate reinforced by T/I shaped steel, then, concrete will be poured after installation of bottom steel. This deck slab has more durability compared with conventional RC deck slab, and can achieve quick construction. Due to installation of steel plate at first, there is no risk about leakage of wet concrete during construction, and cause no restriction of traffic usage underneath of deck slab during construction work. Sketch of Composite Deck Slab is shown in Figure 14-5.

Due to application of this technique, it is not required to restrict existing traffic under deck slab during construction work. Therefore, it can show effectiveness at congested area. In addition, this technique has more durability compared with conventional RC Slab and can show effectiveness of application of this technique at underdevelopment countries which normally have problem about overloaded truck, therefore, it is considered this technique has competitiveness in international market.

Figure 14-5： Composite Deck Slab

Source: HP of New Technology Information System

(2) Financial Advantage by Japanese Contractor

Since project cost of the Project will exceed 1,000 Million USD, it is required to involve Japanese Contractor which has financially stable basis in order to make negotiation and discussion with financial agency for arranging loan.

14-3 Necessary policy for acquiring of the Project by Japanese Contractor

In order to enhance acquisition of the Project by Japanese Contractor, it is required that Myanmar government understand advantage of Japanese advanced technology. In general, it is considered that application of Japanese advanced technology causes high construction cost. Moreover, there is a tendency that negative impact against existing traffic during construction has not priority in under development country and cheap structure type or construction method are applied. However, if impact against existing traffic and surrounding environment is evaluated correctly, cost by Japanese advanced technology will not be expensive. Hus, it is important to explain advantage of Japanese advanced technology and social loss due to existing technology.

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