VIETNAM
INFRASTRUCTURE DEVELOPMENT IN HO CHI MINH CITY
MAY 2009
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This document has been prepared by a team composed by Nam Tran Quang (parts II, III, IV, V and VI), Giang Van Nguyen (Part I, paragraphs 1 and 2), Massimiliano Bertollo (Part I, paragraph 3 and editorial support) and Marco Saladini (concept, editing and supervision). Thai Nguyen Chinh and Huong Phung Thi Thanh took care respectively of editing the final version and of researching some background information. The document has been finalized in May 2009 and it is part of the project “actions in favor of investments” carried out jointly by the office for industrial co-operation and relations with international organizations at the Italian Institute for Foreign Trade (IIFT or ICE) in Rome and the IIFT’s Vietnam country office. The aforementioned project is funded by the Italian Ministry of Economic Development, under the extraordinary promotion programme for Vietnam 2008-2010. ICE is thankful to all those who contributed, directly or indirectly, to the preparation of this document.
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TABLE OF CONTENTS
OVERVIEW ...... 4 PART I: HOW TO ENTER THE CONSTRUCTION MARKET IN VIETNAM...... 6 PART II: WHY HO CHI MINH CITY? ...... 11 PART III PROJECTS OFFERING BUSINESS OPPORTUNITIES...... 13 TRANSPORTATION...... 13 BRIDGES...... 27 PARKING LOTS ...... 32 METRO ...... 36 MONORAIL...... 41 WATER ...... 43 ENVIRONMENT AND WASTE MANAGEMENT ...... 48 POWER ...... 53 PORTS...... 55 AIRPORT ...... 58 PART IV: UNIVERSITIES ...... 59 PART V: RELEVANT AUTHORITIES...... 61 PART VI: CONCLUSIONS...... 64
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OVERVIEW
This report aims to facilitate the approach to business opportunities in the Vietnamese infrastructure sector by Italian companies. It focuses on Ho Chi Minh City, the biggest and most dynamic urban area in Vietnam, where plans for developing a wide range of modern infrastructure works have been designed and in some cases are already being implemented. In all infrastructure subsectors both needs and ambitions are very high, while existing facilities are overburdened. Furthermore, local authorities are very familiar with overseas development aid procedures and management of works carried out by foreign contractors and are adopting a fairly open approach to public-private partnerships. According to official estimates, the needs for investments in infrastructure projects amount to over Usd 23 billion, in the period from 2008 to 2020, with 22% of this amount coming from project finance schemes, 37% from People’s Committee own funds, 18% from Ministry of Transportation’s funds and 23% from Overseas development aid funds (see table below). Project finance funds’ needs would be concentrated in the period from 2008 to 2015, while in the following five years the budget of the People’s Committee would be the major source of funds. As tentative as they may be, given that they cover a very long period of time, these figures give a first overview of the substantial business opportunities which may arise in the future and pinpoint a strong business case for getting involved in them. Altogether, the city seems a very good starting point of entry for Italian companies, which nonetheless will have to face stiff competition and seek the right local partner, before bidding or investing.
FINANCING NEEDS FOR MAJOR INFRASTRUCTURE PROJECTS IN HO CHI MINH CITY
Projects performed/financed by Capital needed (billion VND) Total 08-20 (Vnd Total 08-20 (Usd bn.) bn.) 2008-10 2011-15 2016-20
Build, operate and transfer (Bot) 21.901 28.295 1.215 51.411 3.213 Build and transfer (Bt) 12.687 1.186 0 24.547 1.534 HCM People’s Committee 24.752 6.502 49.013 138.785 8.674 Ministry of Transportation 27.608 33.062 8.983 69.653 4.353 Overseas development aid 35.318 51.331 0 8.665 5.416 Bot or Bt 300 9 0 9 593
Total 122.566 120.385 59.211 293.070 23.783
Source: Ho Chi Minh City's People Committee
Among recent developments, we could not help but notice a much deeper concern by the authorities with respect to transparency and compliance to procurement rules and best practices. This is much welcome news, given that some recent scandals had caused concern in the industry about the relevant administrations’ capacity to sustain the very high volume of activity in this area necessary to upgrade local facilities to current and projected needs. The lack of a stable presence by Italian companies interested in this sector contrasts with the active role played by other developed and developing countries’ companies, among which one can find French, German, United States, Malaysian, Thai and Chinese ones. To fill Italian companies’ knowledge gap with respect to business opportunities in infrastructure and to respectfully prompt them to act in its respect, the Italian Trade Commission, Ho Chi Minh City office, in agreement with guidelines approved by its Rome-based headquarter and the Ministry of Economic Development of the Italian government, is now carrying out a program of activities at the national level, of which this report forms an integral part. Data and opinions mentioned in the report are gathered from responsible persons of relevant authorized organizations, so they are expected to be reliable. Given that many projects are still at the design or initial implementation stages, changes are possible. Interested companies are advised to check with the Italian Trade Commission’s office for further assistance and information.
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The report is divided into six main sections. Part I is about procedures for bidding for contracts and investing in public-private partnership infrastructure projects in Vietnam, with a special attention to those based on project finance schemes. Part II is about some key information about Ho Chi Minh city and why foreign companies investors should consider it in order to develop their business. Forty-five major projects and some master plans calling for investment and/or participation in bidding for contracts are listed in part III, with all basic details for each one of them, including desired investment form, total investment value, organizations responsible for those projects and their contact information. The list is an operational tool which can be used to learn and follow-up about business opportunities. When appropriate, we mention the multilateral development bank (e.g. The World Bank Group or the Asian Development Bank), which sponsored the project; in these cases, we advise the reader to visit the relevant websites to collect more information. Unfortunately, regarding power and airport projects, we could not collect detailed information from the relevant authorities. Part IV introduces some reputable universities in Ho Chi Minh City related to the study of civil engineering and urban planning and architecture, where young Vietnamese engineers are trained and research in these fields is carried out. Given their public service and/or utility nature, it goes without saying that in all cases the project originator or owner is a public body. Therefore the authorities relevant for investors and bidders alike are mentioned in part V. This list complements the project-specific contact information provided in part III. The conclusions are articulated in part VI.
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PART I: HOW TO ENTER THE CONSTRUCTION MARKET IN VIETNAM
1. Introduction The Vietnamese construction market is one of the most vibrant ones in Asia and although it has been affected by the global recession in 2008-9, at the moment of writing this report i.e. in Spring 2009 demand was already showing signs of a comeback, both in prices and quantity. The construction sector, and particularly its infrastructure subsector, are poised for additional support from the Vietnamese government’s budget, under the stimulus package under consideration at the National Assembly. Given that this report focuses mostly on infrastructure, we will not dwell on the residential subsector. In the civil works area there are two main entrance paths for foreign contractors, bidding and, more recently, investing in project-finance type ventures.
2. Bidding for construction contracts in Vietnam Broadly speaking, foreign contractors (FC), supplying goods and services related to construction, can operate in Vietnam under certain rules and regulations partially described in what follows. A legal framework about procurement of such items has been shaped by competent authorities and is still evolving. It is not as detailed and as fool-proof as in developed countries and gaps need to be tackled with a flexible and sometimes creative approach in order to do business efficiently.
A. Legislation FC and their operations in the territory of Vietnam are governed by the Construction Law of Vietnam No.16/QH11 dated 26 November 2003 and the Tendering Law of Vietnam No. 61/2005/QH11 date 29 November 2005. As construction and tendering intertwine closely together, the Government and the competent authorities have issued a series of documents providing guidelines for construction and tendering activities in detail, namely * Decree No.58/2008/ND-CP dated 5 May 2008 providing guidelines for implementing the Tendering Law and for the selection of building contractors pursuant to Construction Law * Decision No.87/2004/QD-Ttg dated 19 May 2004 * Circular No.05/2004/TT-BXD dated 19 May 2004 guiding procedures and management of granting tendering permit for FC operating in the field of construction in Vietnam * Decision No.131/2007/QD-Ttg dated 9 August 2007 promulgating Regulation on leasing foreign consultant in the field of construction in Vietnam and the like. Among those, Decree 58/2008 covers most of the issues relating to tendering activities in the field of construction. Besides, operations in this field are also governed by international treaties to which Vietnam has signed or acceded.
B. Overview of regulations on construction activities relating to FC Procedures for taking part in construction works having State’s capital may be different from dealing with those having non-State capital. As regulated in the Construction Law, the person making the investment decision or the investor in construction of works shall have the right to decide using one of the following forms to select a contractor, depending on the scale, nature and funding source of the particular construction works: 1. Open tendering, limited tendering 2. Appointment of a contractor 3. Selection of a contractor for architectural design for construction of works. Accordingly, projects financed by the State by thirty percent or more of their cost are compulsorily subject to the provisions of the Tendering Law. We will refer to such project hereinafter as to State funded projects, as opposed to remaining projects as to non-State funded projects.
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I. Forms of selection of contractor Under the Tendering Law, the investor in a State-funded project must select a contractor using one of the following methods.
1. Open tendering This main form of tendering shall be conducted in order to select a contractor for execution of building works, and the number of participating tenderers shall be unlimited. The conditions and time- limit for participation in the tendering must be publicly announced prior to issuing tender invitation documents. As set forth in the Tendering Law, such announcement must be made in the tendering information newsletters and an English newspaper having mass publication (usually Vietnam News or Saigon Times), as well as via the mass media.
2. Limited tendering This form may be conducted in order to select a construction consultancy contractor and a contractor for execution of building works, upon satisfaction of one of the following three conditions. - The tender package is of a research and experimental nature and only a limited number of bidders is capable of satisfying the requirements of the tender package - The donor of the funds used for tendering requires that tendering be used - The tender package has highly technical requirements or technical peculiarities In this form of tendering, at least 5 experienced and capable bidders are invited to participate. Authorization to invite less than 5 bidders is needed from the authorized person or internal body (e.g. the Managing Boards of the capital-contributing partners). The nationality of a bidder can not be a pre- requisite.
3. Selection of an individual to carry out a consulting service The investor selects one out of at least three (3) nominated experts on the basis of scope of work, workload, quality and time limit for the work as well as qualification and ability of the consultants.
4. Direct appointment of contractors The person making the investment decision or the investor in construction of works shall have the right to appoint directly an organization or individual to undertake work or construction of works if and when they are related to State secrets, or are to be done pursuant to an emergency order, or they are temporary works, works of a research or experimental nature, repair, embellishment or restoration of works on cultural or historical-cultural heritage sites and other special cases. Ministers and Presidents of provincial-People Committee are authorized to appoint a contractor for projects worth 5 billion Vnd or less (about 220,000 Eur). Appointed companies and individuals need to have full capability and carry out the works at a reasonable price.
5. Direct procurement of goods This form is applicable where a similar tendering package has been signed within six (6) months.
6. Competitive offers Competitive offers are permitted in the case of tender packages for procurement of goods valued at less than two (2) billion VND and where those goods are commonly used goods, which are readily available on the market. A minimum of 3 offers from 3 different tenderers on the basis of the order request in the tender invitation documents must be obtained.
7. Self implementation This applies where the investor is also a contractor. The law requires that there must be an independent entity selected by the contractor supervising the implementation of the tender package. No formal tendering procedure is required in this case to select the consultant.
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8. Special cases Where the forms of selection above cannot be applied, the investor must prepare a plan for selection of a contractor, which ensures competitiveness and economic effectiveness, and submit the plan to the Prime Minister for approval.
9. Non State-funded projects It is not compulsory for investors of non-State funded projects to apply the provisions of the Tendering Law on their process of selection of contractor. They have the right to select contractors the way they want. Should they opt for using the above-mentioned procedure, then they will have to follow it. The investor and FC will have to stipulate an agreement, provided that it is not contrary to Vietnam’s law.
II. Requirements for FC FC can engage in activities subject to selection of contractors including jobs, groups of jobs or the entire work of formulation of detailed construction master plans, formulation of investment projects for construction of works, survey, design, execution of building works, supervision and other construction activities. Nonetheless, some restrictions apply. 1. Whenever they are selected, FC must enter into a partnership with a Vietnamese contractor or undertake to use Vietnamese sub-contractors to implement their work in Vietnam1. 2. Pursuant to Vietnam’s commitment to WTO, for the period of 2 years from the Vietnam’s accession to WTO, foreigners could only provide construction and related engineering services to foreign-invested enterprises and foreign-funded projects in Vietnam2. As Vietnam officially became member of WTO on January 11, 2007, it can be assumed that such restriction have become null and void on January 11, 2009. FC can take part in construction works in Vietnam if they are awarded a contract, and have to meet the following requirements. - Contractors being individuals must have capability for construction practice, which is determined in accordance with grades on the basis of professional levels certified by a lawful professional training organization and on the basis of experience and professional ethics. - Contractors being organizations must have capability for construction activities, which is determined on the basis of the capability for construction practice of individuals within such organization and experience in construction activities, financial capacity, equipment, and management capability of the organization. FC must perform the following administrative procedures in order to work in Vietnam. - Obtain a tendering permit prior to commencing their business. The time-limit for competent authority to grant/not grant tendering permit shall be twenty (20) working days from receiving FC’s lawful application file. - register an administrative office together with its address, communication resources, bank account as well as the seal of such administrative office. - Follow other procedures on immigrant, exportation and importation, labor registration, etc.
III. Basic contents of contracts in construction activities A well-written contract complying with laws and regulations is considered of paramount importance in construction activities. According to the Construction Law, it shall include the contents of the work to be performed, quality and other technical requirements, duration and schedule for implementation, modalities for checking, acceptance and hand-over, price and method of payment, warranty period, liability for contractual breach and other agreements depending on each particular type of contract and finally the working language of the contract.
1 Article 13.2 of Tendering Law; Article 4.3 of Regulation on management of foreign tenderers attached to Decision 87/2004/QD-TTg dated 19 May 2004. 2 Part II - Schedule of Specific Commitments in Services, Sub-sector 3: construction and related engineering services.
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3. Investing in infrastructure The relevant need of new and large investments in infrastructure, in addition to the relatively smaller amount of funds made available by international donors and to the gradual phasing-out of concessional loans, in this latter instance due to the fast progress of Vietnam on its development path, are all factors contributing to the need of increasing private investments in the sector, especially through project finance schemes. The Vietnamese government has opened new opportunities for project finance as the most promising way to reduce the gap between resources and need of infrastructures by promulgating in 2007 a new law, closer to international standard. Given that it has not been followed by more detailed regulations and that there is a lack of understanding and knowledge about its implementation among some of the relevant Vietnamese authorities in many cases a project-by-project approach is adopted to finalize negotiations. According to the list of infrastructure projects of national interest, the sizable number of projects that should be developed via Build-operate-transfer, Build-transfer-operate and Build-transfer investment schemes not only shows a strong interest by the government in finding alternative sources of financing but also underlines the new and positive approach of the authorities. Even local private investment funds activated themselves on national and international financial markets to collect and manage new capital resources to implement infrastructure projects. Some local authorities, among which the Ho Chi Minh City Department of Planning and investment, have voiced in several occasions their willingness to pave the way for infrastructure investments carried out by the private sector.
Definitions by Law In Chapter 1, article 3, paragraphs 17, 18 and 19 of the Investment Law of 2005 and Chapter I, article 2 of the more recent Decree 78 of September 2007, some basic definitions are set forth as follows. Build-operate-transfer contract (Bot) means the investment form signed by a competent State body and an investor in order to construct and operate commercially an infrastructure facility for a fixed duration. Upon expiry of the duration, the investor shall, without compensation, transfer such facility to the State of Vietnam. Build-transfer-operate contract (Bto) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility. Upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall grant the investor the right to operate commercially such facility for a fixed duration in order to recover the invested capital and gain profits. Build-transfer contract (Bt) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility. Upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall create conditions for the investor to implement another project in order to recover the invested capital and gain profits
Sectors open to Bot, Bto and Bt investments Article 3 of the Decree 78 of September 2007 clarifies sectors in which foreign investors can participate using Bot, Bto and Bt procedures. Such sectors and subsectors include roads, bridges, galleries, railways and tramways, airports, sea ports, river ports and banks, water plants, drainage and sewer systems for waste treatment, power plants, electricity transmission networks and other infrastructure projects decided by the prime Minister.
Incentives and guarantees In Chapter 5, Section 1 article 27, paragraph.5, among the sectors eligible for incentives Construction and development of infrastructure facilities and important industrial projects with a large scale is strongly taken in consideration.
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The incentives and guarantees in favor of all foreign investments are stated in the above mentioned decree and further detailed in Circular No. 59/2007/TT-BTC of June 14, 2007 of the Ministry of Finance. They include the following provisions. - Corporate income tax incentives, on a project-by-project basis, for the whole duration of the project. - Exemption from taxes relating to technology transfer and income from royalties on objects of industrial property, technical know-how, technological processes and technical services - Other tax incentives on ancillary projects carried out by investors in order to recover capital invested in BT projects, on a project-by-project basis - Exemption from import duties for the execution of Bot, Bto or Bt projects, both on equipment and machinery and raw materials and supplies - Exemption from land use or land rent fees for the area of land allocated to the project - Guarantees for loans, provision of raw materials, sale of products and other contractual obligations to the companies involved in the implementation of the project, as and if needed and on a project- by-project basis - Right to mortgage the implementing companies’ property generated by the project - Ban on any nationalization or expropriation by administrative action
Capital Requirements In Chapter 1, article 4 of the Decree 78 of September 2007, it is explained that there is a minimum capital requirement for investors and it says that the equity of an investor used for carrying out a project shall be raised in accordance with the schedule agreed in the project contract and must reach the following minimum ratio. (a) With respect to projects with total investment capital of below 75 billion Vnd, the equity of the investor must not be lower than 30% of the total investment capital of such project; (b) With respect to projects with total investment capital of between 75 billion Vnd and below 1,500 billion Dong, the equity of the investor must not be lower than 20% of the total investment capital of such project; (c) With respect to projects with total investment capital of 1,500 or more billion Vnd, the equity of the investor must not be lower than 10% of the total investment capital of such project.
Case Study: Lao Cai – Hanoi – Hai Phong Corridor Two highways, one from Lao Cai to Hanoi and the other from Hanoi to Hai Phong, in the Northern part of the country, are considered as national priorities for Vietnam and for its relations with neighboring countries, since they will improve the connection between Vietnam and Yunnan province of China. The project has the goal to boost trade between the two countries, improve the socio-economic conditions of the population and upgrade Hai Phong urban and harbour facilities to a major commercial and logistic hub for Chinese goods. The Asian Development Bank (Adb) has authorized a loan of 1,1 billion USD to Vietnam to implement the construction of the Lao Cai – Noi Bai Airport highway (244km) and, at present, this is the biggest loan agreement between Vietnam and the Adb and in the latter’s history as a whole. The project has been conceived as a Bot investment and the Vietnamese enterprise Vec is going to manage and obtain the highway toll for 32 years, starting at the end of works in 2012. The Hanoi – Hai Phong highway (105km) has an estimated cost of 1,5 billion Usd and investment, according to government decision, will be paid back collecting tolls over 35 years. The government is taking in consideration a special line of funding and so far a consortium made of Vib, Vietcom Bank, Viet NM Construction Export and Import Corp and Saigon Invest Group is proceeding with the project. German and Korean enterprises are currently part in the construction and construction supervision. One of the 10 individual lot contracts has been awarded to GS Engineering & Construction Corp (South Korea) and concerns the construction of 9,3km of road and two bridges over a period of 3 years. Funds came from Vietnam Development Bank (100 million USD) and Exim Bank (75 millions of USD, South Korea) and the investment is going to be paid back with a 25 year right on highway tolls.
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PART II: WHY HO CHI MINH CITY?
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I. Geographical location Ho Chi Minh city – a biggest city in Vietnam, with a total area of 2,095 square kilometers, is located from 10010’-10038’ North and 10602’-106054’ East. The city is bordered by Binh Duong Province to the north, Tay Ninh Province to the northwest, Dong Nai Province to the east and northeast, Ba Ria-Vung Tau Province to the southeast, and Long An and Tien Giang provinces to the west and southwest. Ho Chi Minh City is 1,730km far from Hanoi - the capital and is at the crossroads of international maritime routes. The city, with many ports inside, is 50km from the East Sea in a straight line, so it is a transport hub of the southern region and a gateway to the world.
II. Population and labor force There are more than 8 million people living in 19 urban and 5 rural districts. The population is fairly young, with over 50% under the age of 35.
III. Economy
Ho Chi Minh city is at the center of the burgeoning economy and the country’s industrial heart. Year 2007 GDP growth (%) GDP per capita (USD)
The country of Vietnam 8.48 835
Ho Chi Minh city 12.2 2,200
In 2008, in spite of the high inflation and many difficulties, the city continued maintaining its growth rate GDP was achieved at 11%, 1.6 times higher than that of the whole country. The total export turnover was increased to 24.3% and the foreign direct investment (FDI) was reached 8.38 billion USD, 4.22 times upper than the same period last year. Ho Chi Minh city has been played an important role to the country’s development, accounting for 21% of total GDP, 30% of the industrial output, 29% of the total retail sales and services, 40% of the export turnover, and 33% of the State budget. In particular, its GDP per capita is highest in Vietnam, 3 times higher than the country’s average figure.
As a result, the progress of Ho Chi Minh has an influence on the growth of the country of Vietnam. However, the development of the city in economy, population, and means of transport … is quick, whereas the city’s exiting infrastructure system is old, insufficient and not corresponding to the maturity of a big city and an economic center like Ho Chi Minh city. That more or less prevents the city’s development. Deputy chairman of HCM City People’s Committee Nguyen Trung Tin remarked that: "Roads are being developed by two per cent while the number of vehicles grows by 10 per cent per year, leading to the overload on HCM City’s infrastructure facilities." Realizing such problems, the Vietnamese government and Ho Chi Minh city leaders take priority on enlargement and completion of the city’s infrastructure. The total estimated investment capital needed for road, railway and waterway projects for the city by the year 2025 will be $13.9 billion. Therefore, the city is calling for foreign investment in infrastructure for the city’s stable development. Please see more detail about those projects in the next part.
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PART III PROJECTS OFFERING BUSINESS OPPORTUNITIES
Chapter 1 TRANSPORTATION Vietnam’s robust economic growth is accompanied by an urgent need for a good transportation network and infrastructure. Vietnam’s infrastructure is in a worrisome state, with transportation systems largely weak, small-scale and below technological standards. The country has not yet developed deepwater seaports or standard highways, and urban road systems in major cities have not been fully connected to the national highway system. As a result, main projects are underway to build more ports, highways, railways, roads, bridges, car parks and other auxiliary facilities. The country plans to develop 6,000km of expressways by 2025, with 261km of expressways designed for high-speed travel to be built each year until 2025 at an estimated total cost of $22.8 billion. The Government has set aside billions of dollars to be invested in numerous mega-scale road and rail projects. In Ho Chi Minh City alone, the total estimated investment capital needed for road, railway and waterway projects will be $13.9 billion. With the total acre of 2,095 km2, there are 978 bridges, 3,584 streets with the total length of 3,668 km in Ho Chi Minh city. Most roads inside the city are narrow. Of which, 14% of them are over 12m wide, possible for bus transport. 51% are from 7m to 12m wide, suitable with cars and microbuses; and remains, less than 7m in width, fitting with motorbikes and bikes. Till July 2008, the number of registered means of vehicles was 3,926,730, including 361,411 cars (10.63% higher than in the year 2007); 3,565,289 motorbikes (6.8% higher than in the year 2007) and about 60,000 cars and 700,000 motorbikes registered at other provinces; 30,000cyclos and 3 - wheel vehicles and nearly 2,000,000 bicycles. Besides projects financed by the capital budgets of the city and the Central, Ho Chi Minh city is calling for investment in other infrastructure projects under the investment forms of Bot, ODA and Bt. Here are some major projects attracting the concern of many investors. A summary of projects mentioned in this chapter can be found below, followed by a detailed description of each one of them.
No. Project name Specification and objective Investm Form of ent investmen Capital t (USD mil) 1.1 HCMC-Long - Technical assistance of ADB 10 Thanh- Dau Giay - Loan project financed by ADB 410.2 1.2 Expanding - To decrease traffic flows of the existing 803.125 Bot,Bt National Highway centripetal national highways with mass 22 vehicle transport capacity + Length: 20km 1.3 Parallel road to Ha - Length: 4 km; width: 40km 119 Bot and Bt Huy Giap Road + Connecting Phu Long bridge to an external centripetal axis in north east of the city + Connecting Belt road No.2 to Binh Duong province 1.4 Southern Inter – + An interregional route connecting 1,689 Bot,Bt
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Provincial directly to a traffic network of Expressway expressways, national highways, sea ports and airport 1.5 Upgrading and + Creating the external centripetal axis for 71.25 Bot and Bt expanding connecting Belt roads No. 2, 3, 4 and Tay provincial road Ninh Province and the surrounding areas No.15 + Connecting belt roads and centripetal provincial roads (No.12, 15,16) to create an external uninterrupted cross transport network. 1.6 Overhead road - 4 lanes; Length: 7 km 211 Bot or Bt No.3 1.7 Upgrading and - Length: 7km 127 proposed expanding roads - Width: 30m by from An - Route: Kinh Duong Vuong to Tan Binh investors DuongVuong - industrial park. Phan Anh – BinhLong – Pro.Road No. 3
1.8 Nguyen Van Linh - To solve the traffic jam 19 rehabilitate – Belt Road No.2 and exploit onsite land fund 1.9 Nguyen Van Linh - To solve the traffic jam 48 Proposed cross road – Binh by Tien investors 1.10 Nguyen Van Linh - To solve the traffic jam 24 Proposed _ Pham Hung by investors 1.11 Nguyen Van Linh - To solve the traffic jam 48.75 exploit – Nguyen Huu onsite land Tho fund 1.12 Hang Xanh traffic - To solve the traffic jam 28.125 exploit point onsite land fund 1.13 Thu Duc traffic - To solve the traffic jam 53.125 exploit point onsite land fund 1.14 Cong Truong Dan - To solve the traffic jam 26.25 exploit Chu onsite land fund 1.15 Cay Go traffic - To solve the traffic jam 15.625 exploit point onsite land fund 1.16 Nhon Trach road - To construct a part of ring road No.4 and 138 Bot to complete the road system in district 9
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1.1 Project financed by ADB: Ho Chi Minh City-Long Thanh-Dau Giay Expressway Project
Type/Modality of Assistance: + Project No.40198-01 Loan – 2374 Vie: Ho Chi Minh city – Long Thanh – Dau Giay Expressway Technical Assistance Project From: Asian Development Fund: USD 10 million + Project No.40198-02 Loan – 2451 Vie: Ho Chi Minh city – Long Thanh – Dau Giay Expressway Construction Project From: Ordinary Capital Resources: USD 410.2 million 1.1.1 Brief introduction A rapid increase in the use of means of vehicles is a reason caused congestion on the highway network. If industry is to continue as a major driver of growth in the Vietnamese economy, there is a must to maintain the development of the highway transport system so that goods and people can be moved efficiently. Under the Expressway Network Development Plan, ADB provided technical assistance (TA) responding to the Government’s request for assistance to plan the development of an expressway network. The TA funded a study of an Expressway Master Plan for the long-term development of the country’s expressway network, and identified priority expressway projects. The study acknowledged the Ho Chi Minh - Long Thanh - Dau Giay expressway (HLD expressway) as a high priority project and, based on a preliminary assessment, found the project to be economically, financially, and technically viable. 1.1.2 Specification HLD expressway is operating, connecting HCMC District 9 with Dau Giay (about 51 km) as a four-lane, high-speed, limited-access, tolled highway. 1.1.3 Objectives Transport users in HCMC and Dong Nai Province to travel from District 9 in HCMC to Dau Giay with lower transport costs on the HLD expressway. 1.1.4 Responsible ADB dept: Southeast Asia Department 1.1.5 Responsible ADB division: Transport and Urban Development Division, SERD 1.1.6 Executing Agencies: Vietnam Expressway Corporation Hamlet No. 2, Linh Nam Ward, Hoang Mai District Hanoi Vietnam Tel: 84-4- 36430266 Fax: 84-4-36430270
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External Centripetal Roads
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1.2 Project name: Expanding National Highway 22 (Trans – Asia Highway)
1.2.1 Objective - It helps to decrease traffic flows of the existing centripetal national highways with mass vehicle transport capacity. - It connects traffic belt roads, centripetal provincial roads 12,15,16 to create a roundabout network from external traffic routes that enter the City on the northwest gateway (Cambodia) and north gateway (Binh Duong province). 1.2.2 Location - Districts: 12, Hoc Mon, and Cu Chi. 1.2.3 Scale - Length: 20 km - Cross section area: + Plan 1: 60 – 120m + Plan 2: building overpass pedestrian road above the existing separating strip. - Route: From An Suong crossroad to intersection of Belt road No.4 1.2.4 Total investment capital - USD803.125 million 1.2.5 Investment form - Bot, Bt1.2.6 Priority level: 1 1.2.7 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city People’s Committee) 63 Ly Tu Trong Street, District 1 – Ho Chi Minh city – Vietnam Tel: (84-8) 38292188
1.3 Project name: Parallel road to Ha Huy Giap road
1.3.1Objective - Playing a role as the municipal centripetal road with current centripetal national highways (National Highway 1A ; National Highway No. 13 and No. 22); expressways with high vehicle clearance capacity; belt roads and centripetal provincial roads (provincial Road No.12; No. 15 and No. 16) that can create an uninterrupted network to external main roads in North East of the city. - Connecting Phu Long Bridge Project to an external centripetal axis in North East of the city - Connecting Belt Road No. 2 to Binh Duong Province 1.3.2 Location - District 12 1.3.3 Scale - Length: 4km - Width : 40m - Route: From Nga Tu Ga Junction to the new Phu Long Bridge - Bridges (length : 239,4m, width: 34m) including: + Giao Khau Bridge + Ong Dung Bridge 1.3.4 Total investment capital - USD119 million 1.3.5 Investment form - Bot and Bt 1.3.6 Priority level: 1
Vietnam – Infrastructure development in Ho Chi Minh City 18
1.3.7 Contact for more information - Department of Transport and Urban Public Works (Hochiminh city People’s Committee) 63 Ly Tu Trong Street, Distric 1 – Ho Chi Minh city – Vietnam Tel: (84-8) 38292188
1.4 Project name: Southern Inter – Provincial Expressway
1.4.1Objective - To be an interregional route connecting directly to a traffic network of expressways, national highways, sea ports, and airport. - It functions as an urban traffic belt, routing through satellite cities and crossing almost arterial roads, centripetal roads, radial roads that help reduce heavy traffic in the urban area. - It contributes to urbanization and economic development of districts of Nha Be and Can Gio and the west – east transport of goods from southern key economic zone. 1.4.2 Location - Districts: Binh Chanh, Nha Be, Can Gio ( Ho Chi Minh city); Ben Luc ( Long An province); Nhon Trach, Long Thanh ( Dong Nai province). 1.4.3 Scale - As sub – projects planned 1.4.4 Total investment capital - USD1, 689 million estimated 1.4.5 Investment form - Bot, Bt 1.4.6 Priority level: 2