Urban Environmental Improvement Project (RRP LAO 43316)

Pakse Urban Environmental Improvement Project

Asian Development Bank TA 7567-LAO

Lao People’s Democratic Republic Department of Public Works and Transport Champasack Province

Technical Note: Urban Development Strategy June 2011

Pakse Urban Environmental Improvement Project ADB TA 7567-LAO Urban Development Strategy, April 2011

Contents

1 Introduction ...... 1 1.1 Background...... 1 1.2 Urban Strategy Objectives ...... 2 1.3 Components of the Urban Strategy ...... 2 2 Development Context ...... 3 2.1 Regional Policies and Plans ...... 3 2.1.1 Cooperative Development Projects in Region ...... 3 2.2 National, Provincial and District Plans ...... 4 2.2.1 National Socioeconomic Development Plans ...... 4 2.2.2 National Urban Sector Strategy ...... 5 2.2.3 Champasack Province and Pakse District Socio-economic Plans ...... 5 2.3 Road Networks and Transportation ...... 6 2.3.1 Road Network ...... 6 2.3.2 Transportation ...... 7 2.4 Population Growth and Urban Expansion ...... 9 2.4.1 Population ...... 9 2.4.2 Urban Development ...... 9 2.5 Geographic and Environmental Constraints ...... 10 2.6 Existing Urban Plans ...... 11 2.6.1 Master Plan and Master Plan Review ...... 11 2.6.2 Champasack University Plan ...... 11 3 Development Issues and Needs ...... 13 3.1 Consultation and Review ...... 13 3.2 Workshop and Meetings ...... 13 3.2.1 SWOT Analysis ...... 13 3.2.2 Vision Statement for Future Development ...... 13 3.2.3 Issues and Concepts for Future Pakse Development ...... 14 3.2.4 Inception Report Meeting ...... 16 3.2.5 Interim Report ...... 16 3.3 Issues and Needs ...... 16 4 Development Targets and Concepts ...... 18 4.1 Development Targets ...... 18 4.2 Development Concept ...... 18 4.2.1 Directions for Growth ...... 18 4.2.2 Development Framework ...... 19 4.2.3 Sustainable Development ...... 19 5 Phased Development Strategy ...... 20 5.1 General ...... 20 5.2 Development Strategy Phase 1 - from 2011 to 2015 ...... 20 5.2.1 Urban Development ...... 20 5.2.2 Road network and Transport ...... 20 5.2.3 Environment/Green Infrastructure ...... 20 5.3 Development Strategy Phase 2 - from 2016 to 2020 ...... 22 5.3.1 Urban Development ...... 22 5.3.2 Road Network and Transportation ...... 22 5.3.3 Environment/Green Infrastructure ...... 22 5.4 Development Strategy Phase 3- from 2021-2030 ...... 23 5.4.1 Urban development ...... 23 5.4.2 Road Network and Transportation ...... 23

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List of Figures

Figure 1.1: Suggested Extent of Study Area for Urban Strategy ...... 1 Figure 2.1: GMS Economic Development Corridors ...... 3 Figure 2.2: Road network connects Champasack to other provinces ...... 6 Figure 2.3: Existing Urban Road Network in Pakse ...... 7 Figure 2.4: Transport Movements around Pakse ...... 8 Figure 2.5: Strategy Plan for Railways Network Development (2010-2020) ...... 8 Figure 2.6: Urbanisation Trend in Pakse ...... 10 Figure 2.7: Constraints to Urban Development ...... 11 Figure 2.8: Land-use Concept for Main Urban Area from JICA Study ...... 12 Figure 2.9: Champasack University Plan ...... 12 Figure 3.1: Pakse Strategic Development SWOT Analysis ...... 14 Figure 4.1: Outline of development concept for Pakse ...... 19 Figure 5.1: Development Strategy Phase 1, 2011-2015 ...... 21 Figure 5.2: Development Strategy Phase 2, 2016-20120 ...... 22 Figure 5.3:Development Strategy Phase 3, 2021-2030 ...... 23 Figure 5.4: Possible Urban Form in 2030 ...... 24

List of Tables

Table 2.1: Total projected population of Pakse and other districts ...... 9 Table 2.2: Projected Population in Greater Pakse Urban Area...... 9 Table 3.1: Issues Raised in Discussion Groups ...... 15 Table 3.2: Assessment of Issues Potential Strategy Responses ...... 16 Table 4.1:Targets for Phases of the Urban Development Strategy ...... 18

List of Annexes

A Statistics from Government Economic Development Plans and Other Sources B Summary of Original of Destination Survey

Abbreviations

ADB Asian Development Bank ASEAN Association of South East Asian Nations DPWT Department of Public Works and Transport GDP Gross Domestic Product GMS Greater Sub Region JICA Japanese International Cooperation Agency Lao PDR Lao People’ Democratic Republic MPWT Ministry of Public Work and Transport PPTA Project Preparation Technical Assistance SWOT Strengths, Weaknesses, Opportunities, and Threats USD United States Dollar

Disclaimer

The views expressed in this report are those of the consultant team, unless otherwise indicated. They are not necessarily the views of the Asian Development Bank or of the Government of Lao PDR.

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1 Introduction

1.1 Background

1 Pakse is growing rapidly. District data shows that the population grew by 6% from 2009 to 2010. At this rate the population will virtually double in 10 years taking the current 77,000 to around 138,000. The town is fast becoming a commercial and transport hub for southern and a major tourism centre. This expansion is likely to continue and it is expected that Pakse will become an important regional city during the next decade. The urban expansion associated with this growth and enhanced city role must be planned within a strategy for growth covering a wide zone of influence. This zone goes well beyond the current urban area and beyond the current boundary of Pakse District.

2 Pakse needs a broad strategy to guide primary infrastructure planning and investment and to provide the rationale for major development decisions.The urban planning system in Lao PDR is currently based on the system of master plans. These tend to be detailed prescriptive plans that take a very long time to prepare and are difficult to implement. As a result the development of most urban areas, especially in recent years, has taken place with little regard to the approved plans. The country needs to move away from the master plan system. In particular the large towns such as Pakse need more flexible plans that are suitable for managing growth in a market economy. Detailed master-plan type plans for the whole urban area are not necessary, but Action Area Plans should be prepared for those locations requiring special attention, such as areas experiencing development pressure, and areas requiring conservation.

Figure 1.1: Suggested Extent of Study Area for Urban Strategy

Master plan planning area and limit of JICA study

Bachiang Mt.

Salau Mt.

Approximate extent of University PUEIP main project areas

Approximate Malong Mt. Strategic area

3 The Urban Master Plan for Pakse, prepared by the then Urban Research Institute, was approved in 1997. This is the last official overall plan prepared for the town. A recent JICA-funded study

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included a review of the Master Plan (along with that for Kaysone Phomvihane)1. Outputs from the JICA study include development frameworks and a land-use concept plan.

4 A shortcoming of the JICA review, however, was that it was limited (by its Terms of Reference) to the planning area defined for the 1997 master plan. Pakse has already outgrown the master plan area and old plan boundaries should not be the basis for strategic decisions on the town’s future development. The plan for a major urban area should include a wider area than just the main development zones. An urban strategy for a wider area is therefore required for Pakse.

1.2 Urban Strategy Objectives

5 The Urban Strategy is intended to be a guiding tool in the management of Pakse’s future growth. By facilitating more efficient development and infrastructure investment it will thereby assist in the establishment of Pakse as a major regional centre. This in turn should strengthen the urban area’s economic ties with the neighbouring countries of Cambodia, , and Vietnam.

6 More specifically the strategy aims are:

To establish development targets and an overall goal for Pakse’s development To identify the principal opportunities for town growth, including main areas for expansion To identify the major constraints to expansion To define key urban infrastructure requirements To stimulate strategic thinking in urban planning and management

1.3 Components of the Urban Strategy

7 The urban strategy’s component include:

Regional and national context Development needs assessment Vision for future growth Concept for city development A phased urban development strategy

1 Preparatory Survey on Formulation of Basic Strategies for Regional Core Cities Development in Lao PDR, Pacet Corporation International Development Centre of Japan Oriental Consultants Co., Ltd., Final Report, January 2010

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2 Development Context

2.1 Regional Policies and Plans

8 As a land-locked country sharing borders with five other countries, Lao PDR is in a strategic location within the region. This presents opportunities for the country to participate in cooperative development projects that will directly and indirectly stimulate socio-economic development. At the same time it creates competition between neighbours, and raises issues of environmental impact across borders. Pakse is well placed to benefit from regional development initiatives as it is close to the borders with three countries, Vietnam, Cambodia and Thailand.

2.1.1 Cooperative Development Projects in Region

9 Lao PDR joined the Association of the South East Asia Nations (ASEAN) in 1997. In 2010, the Master Plan on ASEAN Connectivity was declared in Hanoi 2010. It enhances physical infrastructure development (physical connectivity), effective institutions, and, people to people connectivity.2 Under the support of ADB, the Greater Mekong Sub-region (GMS) was established in 1992, the membership comprising the Lao People's Democratic Republic, Cambodia, Myanmar, Thailand, Viet Nam, and two provinces in China - Yunnan Province and Guangxi Zhuang Autonomous Region – see Figure 2.1.

Figure 2.1: GMS Economic Development Corridors

Pakse

2 ASEAN,2010. Master Plan on ASEAN Connectivity. Jakarta. ASEAN Secretary, Public Outreach and Civil Society Division. Available from

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10 There are many GMS projects and other initiatives that have the overall aim to enhance economic relations between the countries, building on their shared histories and cultures. These cover nine priority sectors: agriculture, energy, environment, human resource development, investment, telecommunications, tourism, transport infrastructure, and transport and trade facilitation.3

11 Pakse is strategically located on the regional road network, and is on an interconnector link between the main GMS corridors.

12 Tourism is a key area for GMS cooperation. In 2005, under the support of ADB, the Greater Mekong Sub-region Tourism Sector Strategy was issued.4 It aims to develop and promote the Mekong as a single destination, offering a diversity of good quality and high-yielding sub-regional products that help to distribute the benefits of tourism more widely; add to the tourism development efforts of each GMS country; and contribute to poverty reduction, gender equality and empowerment of women, and sustainable development, while minimizing any adverse impacts. Pakse is rapidly becoming an important tourism hub and staging post for southern Lao PDR and the southern part of the GMS.

13 Integrated tourism development is also the aim of the Pakse Declaration on Tourism Cooperation in the ‘Emerald Triangle’ between Mekong, Thailand, Lao PDR and Cambodia.

2.2 National, Provincial and District Plans

2.2.1 National Socioeconomic Development Plans

14 At the 6th Party Congress in 1996 the Government set the vision for the nation to graduate from the least development country by 2020. The vision has been maintained in subsequent National Socioeconomic Development Plans. It is also the Government’s aim to transform Lao PDR from a landlocked to a ‘land-linked’ country. It is expected that total population in Laos will be 8.3 million in 2020. Average annual GDP growth is expected to be 7% from 2010 to 2020, while the annual GDP per capital income is planned to increase from 700-750 USD in 2010 to1,200-1,500 USD in 20205 (see Annex A).

15 The 7th NSEDP for the period 2011 – 2015 has been drafted but not yet approved. Whilst the 7th NSEDP includes many targets and policies similar to previous versions, this latest one departs from the established formula of poverty reduction through the four traditional sectors of agriculture, forestry, education, and health. As well as setting broad economic and social targets the 7th NSEDP includes provisions for improving public administration, enhancing regional integration, sustainable use of natural resources, and infrastructure provision. Specific proposals relevant to urban development include the following:

Economic Development and Poverty Reduction Reduce poverty to below 19% of total population Reduce gap between urban and rural areas Consider urban areas as focus points for economic development Encourage dispersed populations to group in villages – ‘Focal Areas’

Environment Establish new land-use system to protect natural resources and ensure sustainable development Protect quality of environment in towns Set up models for managing green environment in and the four secondary towns Raise awareness on need for environmental protection

3 Asian Development Bank, 2010. Strategy and action plan for the Greater Mekong Sub-region East–West Economic Corridor. Philippines. Available from http://www.adb.org/documents/strategy/gms/ewec/gms-action-plan-east-west.pdf 4 Asian Development Bank, 2005. The Greater Mekong Sub Region Tourism Sector Strategy. Philippines. Public Stock No 100105. http://www.adb.org/Documents/Books/GMS-Tourism-Study/tourism-study.pdf 5 National Socio-economic Development Plan to 2020, GOL

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Sustainable development of water resources Complete land management plans at macro and micro levels

Infrastructure Connect north-south and east-west economic corridors Provide water supply to 67% of urban population Increase population having access to clean water to 80% Increase population having access to latrines to 60% Build main roads in districts and rural roads that connect with priority areas Secure the country from losses due to natural disasters

16 Previous socio-economic development plans in Lao PDR have been largely silent on urban issues. By being the drivers of economic growth urban areas have a major contribution to make to the country’s overarching goal of eradicating poverty. However, this is primarily an indirect impact that has been somewhat overlooked in national strategies. The draft of the 7th NSEDP indicates that more notice is being taken of the potential role of urban areas.

2.2.2 National Urban Sector Strategy 6 17 The DHUP has recently completed a draft of a National Urban Sector Strategy (NUSSIP) . Although the NUSSIP has not yet been approved by MPWT and it serves to identify DHUP’s ideas and priorities for the sector, and the main provisions are summarized below:

Objectives To develop all urban areas from the capital city to village clusters to reduce the development gap between the urban and rural areas step by step; To strengthen the capacity of urban management authorities; To create favorable conditions for civil society and the private sector to participate actively in urban planning, management and sustainable development; To preserve and expand cultural and national heritage resources through appropriate urban development and environmental protection.

Priority Programmes Capacity development in urban planning and development authorities Improvement of legal and regulatory framework for urban sector Preparation of national urban water supply development plan Preparation of national urban wastewater management and solid waste management strategy Preparation of national urban transport strategy Preparation of national housing development strategy Prepare and revise plans for urban areas, districts and provinces

Selected Proposals To develop Luang Prabang, Luang Namtha, Kaysone Phomvihane and Pakse as regional centres To develop towns along regional corridors and at border points

2.2.3 Champasack Province and Pakse District Socio-economic Plans

18 The vision of Champasack Province is to develop Pakse as the ‘centre for southern provinces and the sub-region7. The plan includes the establishment of 3 economic axes with links to Cambodia, Thailand and Vietnam, development of 3 industrial zones, 4 agriculture zones and 4 tourism routes. The province aims to achieve 11-12% economic growth and average per capita income of 3,000-3,500 USD.

6 National Urban Sector Strategy and Investment Plan to the Year 2020, DHUP, 2011 (Draft) 7 Champasack Province Socio-economic Development Plan to 2015

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19 Pakse District’s plan aims to capitalise on the area’s locational and natural advantages, which it identifies as having positive socioeconomic potential.8It envisages Pakse as a centre for trading, services, and tourism, and sees it playing an important role in national and regional development. The Plan also aims to establish Pakse as a ‘Green City’ and for ‘Greater Pakse’ to gain official city status in the future.

20 Champasack has significant tourism potential and as part of this Pakse has an important role to play as a tourist hub. In Lao PDR tourism already ranks third in sources of foreign revenue. In 2010, the revenue from tourism was US$267.7m. In 2010 Champasack Province received the fourth highest number of tourists per province, with a total of 278,054. It was also fifth ranked in the number of people entering through international checkpoints (through Vangtao and Veunkham). Overall regional tourists crossing the borders average trips of just one day and spend about $20 each, while international tourist spend 6.5 days and $60 per person.9 In Champasack the pattern is slightly different from the national one, with predominantly Thai tourists coming to Pakse for two nights while visiting the attractions of Wat Phou, the and Siphandone. The Lao PDR Tourism Strategy 2006-2020 has designated Champasack as the tourism center for the four southern provinces. The LNTA is projecting a dramatic growth in visitors to Champasack, reaching over 1m in 2020.

2.3 Road Networks and Transportation

2.3.1 Road Network

21 Several east-west routes converge on the city, which is also situated on the country’s primary north-south axis Road 13 (known as Road 13 South south of Vientiane). These routes connect the southern provinces and also link into Vietnam, Cambodia and Thailand (see Figure 2.2).

Figure 2.2: Road network connects Champasack to other provinces

22 Route 13 South and Route 16 also provide the main primary routes within the urban area, along with Salakheow Road (see Figure 2.3). The road network is elongated and inefficient. There are no

8 Pakse District, 2009. Socioeconomic Development Report to the V Pakse Lao Revolution Party’s Congress 9 Champasack Tourism Devision,2010, statistic yearbook on tourism

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ring-roads or bypass roads, and in future the city will face traffic congestion if additional roads are not built to distribute traffic movements more efficiently.

23 According to DPWT’s long term plan from 2011 to 2020, there are plans to improve and construct new roads and bridges to improve traffic flows.10 These include:

A north-eastern by-pass around Phou Bachiang. Two new bridges over the Xedon. Improvement and extension of the Mekong riverside road south of the urban area.

Figure 2.3: Existing Urban Road Network in Pakse

2.3.2 Transportation

24 Several national and international bus routes pass through or terminate in Pakse. Local bus services primarily serve outlying villages in adjacent districts. There are no bus routes within the urban area itself. Tuk-tuks and small pick-ups provide an informal intra-urban service but there is no formal, organised transport service.

25 According to the DPWT policy and discussion, there is a plan to focus all international and inter- provincial routes on one place, combined with logistics facilities. This is anticipated to be at Km8.11

26 An origin/destination survey carried out for the PPTA revealed many trips currently passing through Pakse have origins and destinations in other places (see Annex B to this report). This reinforces

10 Champasack Province DPWT Sector Development Plan, 2009 11 Source: Mr. Phitsahong Phommavongsa, Head of Water way and land transportation, DPWT of Champasack, 29 November 2010) and (Preparatory Survey on Formulation of Basic Strategies fir Regional Core Cities Development in Lao PDR, JICA, 2009)

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the need for by-pass links to avoid all traffic coming through the urban area, and for transport interchanges at key locations.

Figure 2.4: Transport Movements around Pakse

27 Pakse Airport currently operates both domestic and international flights, and the airport runway has recently been extended to accommodate larger aircraft. The airport is located close to the urban core and will eventually need to be relocated to an out-of-town site.

28 Plans for railway links between Laos and adjacent countries are at various stages of development. One of these will connect Pakse with the town of , just 90 Km over the border in Thailand. In 2008, the Lao Railway Authority, Ministry ofPublic Works and Transport drafted the ’Strategy Plan for Railway Network Development’ in Lao PDR (2010 - 2020). The North to South line runs from Boten (Lao/Chinese Border) through Vientiane Capital, and then via Pakse to the Lao/Thai border at Vang Tao, and Ubon Ratchathani (See Figure 2.5).

Figure 2.5: Strategy Plan for Railways Network Development (2010-2020)

Ubon Ratchathani

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2.4 Population Growth and Urban Expansion

2.4.1 Population

29 The expansion of the Pakse urban area is expected to impact and draw population from five districts - Pakse, Phonthong, Bachiang, Xanasomboun, and Pathoumphone Districts.

12 30 Provincial statistics show that in 2010 the total population in Pakse is around 86,500. According to the population growth estimation from the CDIA PFS report,13 population growth (a combination of natural growth plus immigration) for Pakse is expected to be around 3% annually from 2010-2020. In the four other districts the rate is likely to be lower – about 2.4%. From 2021 to 2030 growth ratesare expected to slow to 2.5% in Pakse and 2.2% in the others. On this basis the total populations of the five districts is shown in Table 2.1.

Table 2.1: Total projected population of Pakse and other districts

Total pop. Total pop. Total pop. Total pop. Districts in 2010 in 2015 in 2020 in 2030 Pakse 86,432 100,200 116,200 148,800 Xanasomboun 68,380 77,000 86,700 107,800 Bachiang 53,553 60,300 67,900 84,500 Pathoumphone 56,439 63,600 71,700 89,200 Phonthong 93,594 105,400 118,700 147,600

Source:Champasack Province Yearbook 2010, and UN Population Division estimates

14 31 According to the United Nation population estimates, the urban population in Laos in 2015 will be 27 % of the total, 30% in2020 and 38% in 2030. Using these figures an estimate of the population living in the main urban area of ‘Greater Pakse’ has been derived. This is on the basis that 100% of population of Pakse will be urban, and about 60% of urban population from other four districts will be living within the City. The results of these calculations are shown in Table 2.2.

Table 2.2: Projected Population in Greater Pakse Urban Area

Urban pop Urban pop. Urban pop. Districts in 2015 in 2020 in 2030

Pakse 100,200 116,200 148,800 Xanasomboun 12,700 15,700 24,800 Bachiang 10,000 12,300 19,400 Pathoumphone 10,500 13,000 20,500 Phonthong 17,400 21,400 33,900

2.4.2 Urban Development

32 In recent years the primary growth area in Pakse has been the area to the east of the established town. Expansion here is encouraged by infrastructure provision (particularly the Mekong bridge) and the availability of land at elevations above those liable to flood. Continued growth of the city in only one direction will result in a somewhat stretched urban form. This is inefficient in terms of

12 Champasack Provincial statistics, 2010 13 PUEIP Medium-term Urban Infrastructure Investment Programme, CDIA, 2010 14 UN Population Division/Lao: Urban Population/Global Virtual University/15th March 2011. Available from http://globalis.gvu.unu.edu/indicator_detail.cfm?IndicatorID=30&Country=LA

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infrastructure as it costs more to build and to operate than for a more compact urban layout. Also longer journeys result in increased greenhouse gas emissions.

33 Existing urban form is generally low density, ranging typically from 80 to 180 persons per ha. Even in Vientiane densities are not much higher, and it is expected that there will be strong support for maintaining traditional Lao values and therefore low densities in future. This means that extensive areas of land will be required for new developments.

Figure 2.6: Urbanisation Trend in Pakse

2.5 Geographic and Environmental Constraints

34 Pakse is well endowed with natural surroundings. The Mekong and Xedon rivers and the nearby mountains contribute to Pakse having one of the finest settings of any town in Laos. This is a major advantage for a town seeking to become a city and to further establish its role as an important regional centre for commerce and tourism. At the same time these natural features create constraints to development, both physical and environmental (see Figure 2.7).

35 Potential flooding is a key issue for an urban area located as it is at the confluence of two rivers. Figure 2.7 includes the land at or below the 100m contour line, which represents approximately the area that would potentially be inundated in the event of a 1 in 10 years flood. This does not take into account existing or proposed flood prevention measures, so the areas within the central part of the urban area will be protected to some degree. The sustainable long-term approach to urban development is to avoid areas prone to natural disaster. Future expansion areas should therefore be selected with this in mind.

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Figure 2.7: Constraints to Urban Development

2.6 Existing Urban Plans

2.6.1 Master Plan and Master Plan Review

36 As mentioned above, the existing master plan for Pakse was approved in 1997 and is out of date. In any case these prescriptive end-state blueprints have proven ineffective tools in the management of urban development since the Government adopted its more market-oriented approach to the economy.

37 The recent JICA review put forward a land use concept for the main urban area - see Figure 2.8. The plans are based on a well-reasoned concept of following the main direction of recent and anticipated short-term growth. Thereby the proposed land-use concept provides a reasonable framework for the initial expansion of the urban area. At the same time, some of the proposals it puts forward, such as the secondary road network, will need checking in detail as the plans were done without the benefit of good digital mapping.

38 On the basis of the above, the JICA plans provide a starting point for an urban development strategy for Greater Pakse. The urban strategy described in the following sections therefore adopts the urban area framework proposed by the JICA study for the existing urban area.

2.6.2 Champasack University Plan

39 Champasack university campus is located in the south eastern corner of Pakse District (see Figure 2.7). The university has major expansion plans that aim to accommodate 15,000 students by 2020. The campus covers about 15 sq km and is therefore a significant factor in the strategic growth of Pakse (see figure 2.8)

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Figure 2.8: Land-use Concept for Main Urban Area from JICA Study

Figure 2.9: Champasack University Plan

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3 Development Issues and Needs

3.1 Consultation and Review

40 Development issues and needs, along with scenarios for future development of Pakse have been identified through a process of consultation and review. In November 2010 a Strategy Workshop undertook a SWOT analysis and arrived at a vision for the city. Key issues were also examined through separate discussion groups. Further comment and discussion was facilitated through the Inception Report Meeting in December and the Interim Report Meeting in March 2011.

3.2 Workshop and Meetings

3.2.1 SWOT Analysis

41 On 26th November of 2010, the Strategic Workshop was held in DPWT. The objective of the workshop was to present the initial concept for Pakse urban strategy by the PPTA team to stakeholders. Participants included representatives from Champasack Provincial Government Departments, District administration, and others. The findings of the SOT analysis are shown in Figure 3.1.

3.2.2 Vision Statement for Future Development

42 SWOT analysis was followed by a brainstorming session to develop a vision for the future. The final vision statement agreed upon is shown below:

‘A regional centre for commerce, culture and tourism, developed in a sustainable way keeping development and protection of natural resources in balance, and, providing a health environment for its citizens.’

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Figure 3.1: Pakse Strategic Development SWOT Analysis

STRENGTHS WEAKNESSES

Location - axis for Vietnam, Cambodia No clear urban planning – and drainage not and Thailand considered Favourable location, rivers and mountains Budget limited for development International airport Development not balanced – some areas Centre for trading for southern Laos developed - some less developed Transport centre for southern Laos No revision of old master plan – but Many tourism sites development is happening fast Existing UDAA has mandate for Urban planning is weak development of future municipality Solid waste – poor operations – lack of Strong private sector development interest sufficient budget and support Green conservation areas are not strictly Population growing - in migration - large preserved human resource pool Low capacity in urban operation and Management No control to protect river banks from development and waste disposal No clear transportation plan Pakse District is constrained by its limited size – not big enough for municipality Shortage of development land Flooding Airport is close to the city

OPPORTUNITIES THREATS

Continued development of tourism Lack of human resource development Expansion of trading, services sector, and Inadequate education facilities to support tourism support professional development Development of transportation hub Continued unplanned development Possible railway Low land - difficulties for construction Business hub Uncontrolled in-migration from different Coordination between Districts in future places - difficult to predict and manage development Continued environmental degradation will Development of natural attractions – hills affect natural resource attractions and rivers

3.2.3 Issues and Concepts for Future Pakse Development

43 At the Strategy Workshop participants were divided into three discussion groups. Each group discussed a different set of issues – Urban Planning, Infrastructure Planning, and Urban Administration. The findings are summarised in Table 3.1.

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Table 3.1: Issues Raised in Discussion Groups

Group Points Raised Urban Planning Zoning of socio-economic activities Agriculture, especially rice planting, in the north west of the city, north of Houay Ngang Manufacturing in the southeast of the city

Tourism sites: Natural tourism Sites: Phou Bachiang mountain, Phou Salau mountain and along rivers and streams Cultural tourism in old city centre( Wat Louang)

Education : Southeast and in Phonethong district ( Phou Salau Mountain)

Move out the airport out of urban area

Reorganise bus stations: One at Km 7 in the northwest and one at Km 8 in the southeast

Development boundary/project boundary: surrounding Bachiang Mountain and covering Phouthong district as well ( as CDIA proposal)

Development Pattern: New urban centre in area of Dao Heuang market/ Km2

Other urban centres in Phonthong, Xanasomboun and Bachiang districts

Urban expansion should include northern parts as well as to the east along 13S Route

Need 3 ring roads/by pass roads :i) around Phou Bachiang, ii) north of Houay Ngang stream, iii) from Route No 6 (Phonthong) to Route No.13 S (Bachiang)

Proposed works in Pakse District: New road parallel to road no 13S Improve of road in Tha Odom, from Salakeow Road to Ban Yo Improvement of road from Don Khor village to Thahai Bus and truck station improvement at Km7 Salakheow Road and Km 8 and R13S Traffic light improvement at 5 intersection New traffic light control at 4 intersection Installation of comprehensive signage and improve traffic signs Upgrading R13S from old French Bridge to the airport Improvement of access road from Sanaxay village to Thahin Neua Village Improvement of secondary roads No.50 at Phonsavanh village, from R13S to Salakheow Road Improvement of all unsealed access roads in urban areas.

Proposed infrastructure improvement in : New road along Mekong riversides for tourism and commercial developments (would involve in relocation of about 40-50 households between Houy Pek and Mekong bridge) General urban road improvement Market and bus station construction Solid waste landfill sites

Administration The group supported the creation of an administrative area for ‘Greater Pakse’ of about 30km x 30km to be the Nakhone (municipality)

There will be four main urban centres: two in old Pakse (Lak Meuang and Tha Hin), one in Phonthong and one in Bachiang.

The Nakhone should be self-governing and report directly to Central Government.

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Development in the Nakhone will be focused on the following: (i) Human Resource Development (ii) Development in relation to social and environmental protection (ii) Development in relation to the utilisation of modern science and techniques (iii) To become a commercial and services centre (iv) To increase the participation of the community (v) To enhance land values

3.2.4 Inception Report Meeting

44 On the 7th of December 2010, the urban strategy was discussed at the Inception Report Meeting held in the Provincial Governor’s Office. The objective was to comments and policy guidance. Key aspects of the meeting’s findings were as follows:

The development strategy for Pakse should respect the desire of people to develop close to the Mekong and Xedon rivers. Development along the rivers will require the identification and enforcement of protection zones, green zones, roads, public parks, and utility corridors. By-pass roads are required to prevent all traffic passing through the urban area. The Government has plans to build a second bridge over Mekong River, and two bridges over Xedon River to facilitate the development of by-passes. Tourism development is critical for the continued growth and prosperity of the city. The provincial government hopes to establish the city as a ‘Nakhon’ by 2020.

3.2.5 Interim Report rd 45 On the 3 March of 2011, the Interim Report was presented to stakeholders. Participants included Champasack Provincial Departments, officers from four districts, representatives from DHUP and the ADB. The Draft Urban Strategy for Pakse was presented. Participants agreed on the proposed concepts of the strategy.

3.3 Issues and Needs

46 Based on the findings of the consultation process, and on analysis of the existing situation, a number of needs issues were identified. These are shown in Table 3.2 along with potential strategy responses.

Table 3.2: Assessment of Issues Potential Strategy Responses

Issues and Needs Potential Strategy Responses Urban Land Use

Existing land use patterns result in conflicting, Identify areas for uses that are incompatible incompatible activities on adjacent sites causing with general mixed residential/commercial nuisance and environmental impacts development Development has not followed the master plan Define clearly areas for urban development resulting in inappropriate developments, some land and areas to be preserved. unused or inaccessible, and inefficient urban Protect key agriculture land from expansion encroachment by urban expansion Development control has not protected areas Relocate activities that are in inappropriate requiring conservation locations – e.g. the wholesale market Uncontrolled development has interfered with (currently in the city centre). existing utilities such as drains Roads and Transportation Road Network Currently all through traffic passes through the city Identify by-pass routes to take long-distance centre resulting in traffic congestion and adverse traffic around the city environmental impacts Provide addition bridge(s) over Xedon Provide additional bridges over Mekong

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Commercial traffic is due to increase, particularly Improve layout of urban road network the transportation of produce from the Bolaven Plateau The existing French Bridge over the Xedon is a traffic bottleneck Not all urban roads are sealed making them difficult to use in the wet season and causing ai pollution in the dry season The road system is elongated and inefficient Currently only one bridge over Mekong Transport No public transport services in Pakse urban area Facilitate integrated public transport system resulting in additional trips by private vehicles Identify sites for edge of town transport The airport is close to the city centre interchanges Relocate airport to out of town site Urban Management

Urban planning has not been well integrated with Develop strategic urban plans in parallel with infrastructure planning and provision infrastructure plans and programmes Low capacity in urban management skills Capacity building for urban management Poor enforcement of plans and regulations Adopt participatory approach in development Low level of public awareness of urban of urban strategies and other plans management issues and procedures Low levels of community participation in planning decisions and strategies

Urban Green Infrastructure Pakse’s extensive natural resources have not been Incorporate natural resource management well managed or protected and protection into urban strategy Insufficient attention has been paid to Increase public awareness of environment environmental issues and climate change issues Existing green infrastructure has not been well Develop capacities for climate change managed and is underutilised for public access preparedness Increase use and access to green infrastructure in and adjacent to the city

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4 Development Targets and Concepts

4.1 Development Targets rd 47 At the Interim Report Meeting on 3 March 2011, it was agreed that the Urban Development Strategy will be planned over three phases, Phase 1 from 2011 to 2015, Phase 2 from 2016 to 2020, and Phase 3 from 2021 to 2030. For each phase targets have been identified and these are listed in Table 4.1below.

Table 4.1:Targets for Phases of the Urban Development Strategy

Phase 1: 2011-2015 - Improved the Urban Environment

. Pakse is well planned and well managed

. Pakse is as well known as Luang Prabang - as a tourist destination and hubfor the attractions of southern Laos

. Pakse is the major market for agriculture products in southern provinces and a centre for agricultural processing

Phase 2: 2016-2020 - Green City

. Pakse established as a city being developed sustainably

. Greater Pakse is a self governing city

. No residents living in poverty or without full urban services

. Centre for education and health care

Phase 3: 2021-2030 - Major Regional Commercial and Cultural Centre

. Pakse is the greenest and most liveable city in the southern part of Laos and the region

. Amajor centrein Mekong region for commerce, tourism, green industry, and other services

. Centre of excellence for sustainable development

4.2 Development Concept

4.2.1 Directions for Growth

48 In recent years the primary growth area in Pakse has been the area to the east of the established town. Expansion here has been encouraged by infrastructure provision (particularly the Mekong bridge) and the availability of land at elevations above those liable to flood. It makes sense to consolidate growth in these areas. However this should not preclude expansion in other locations as well. Growth of the town in only one direction will result in a somewhat elongated urban form. This is inefficient in terms of infrastructure as it costs more to build and to operate than for a more compact urban layout. Also longer journeys result in increased greenhouse gas emissions.

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4.2.2 Development Framework

49 As mentioned above, the structure for development of the main urban area of Pakse has been identified in the JICA study. The framework for the wider strategy area will be determined by a network of primary infrastructure including roads, bridges and railways.

50 The rationale for the proposed framework is based on the following (see Figure 4.1):

. Initial growth to the east, subsequent growth to the north and in Phonthong . No major development in the most flood-prone areas . Two new bridges across the Mekong to carry by-passes north and south . Railway line will cross the Mekong north of the existing urban area . The university will be fully developed on its entire campus

4.2.3 Sustainable Development

51 The urban strategy will be developed with the issues of sustainability and climate change impact as key parameters. The strategy will contribute in various ways to addressing the impacts of climate change or in mitigating additional impacts. In particular the strategy will aim to facilitate and encourage initiatives that tackle these issues and enhance preparedness. These could include:

. Environmentally-friendly public transport . Sustainable water usage and re-usage . Disaster management, particularly from increased flooding

Figure 4.1: Outline of development concept for Pakse

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5 Phased Development Strategy

5.1 General

52 As described earlier, the Urban Development Strategyhas been divided into three phases. The proposed components of each phase are summarised below and illustrated inFigure 5.1 to Figure 5.3. If the strategy is adopted and followed the ultimate urban form in 2030 will look something like that shown in Figure 5.4.

5.2 Development Strategy Phase 1 - from 2011 to 2015

5.2.1 Urban Development Consolidate existing urban area through infill developments, and improvements in infrastructureand development control. Facilitate urban growth in expansion areas where infrastructure already exists (Ban Chat San, Phonthong river bank). High-tech/green industry near university. University initial expansion. Relocate fresh market sections of Dao Heuang market to edge of urban area locations Relocate wholesale and construction dealers from Dao Heuang area to non-central locations

5.2.2 Road network and Transport Extend and improve road along Mekong southwards. Third Xedonbridge and road parallel to R13s (including some on bund). Road on Xedon east bank to Chat San. Secondary road connections between R13s, Salakheow and new road. Riverside road in Phonthong (in association with riverbank works). Relocate north and south bus stations to edge of urban area.

5.2.3 Environment/Green Infrastructure PhouSalao as tourist development zone. Urban parks improved. Saphai and Don Kho established as tourism zone. Develop waster water treatment plants which will serve a part of greater urban area. Develop river bank protection along two sides of Mekong River. Develop green belt along the new Mekong River bank protection. Developmajor urban park in Pakse.

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Figure 5.1: Development Strategy Phase 1, 2011-2015

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5.3 Development Strategy Phase 2 - from 2016 to 2020

5.3.1 Urban Development Develop initial new urban expansion areas – north and east of PhouBachiang, and in Phonthong. Complete university development. Industrial area north of urban area – close to future railway. Logistics centre near future railway interchange with R13s.

5.3.2 Road Network and Transportation Second Mekong bridge (south) Link roads between second Mekongbridge and R16 and R13S. By-pass around PhouBachiang. Improve/replace French bridge . New road north along Mekong.

5.3.3 Environment/Green Infrastructure PhouBachiang developed for recreation. Develop the first water treatment plant, serving the eastern part ofmain urban area.

Figure 5.2: Development Strategy Phase 2, 2016-20120

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5.4 Development Strategy Phase 3- from 2021-2030

5.4.1 Urban development More expansion in Phonthong. Develop northern expansion area around railway/R13s interchange.

5.4.2 Road Network and Transportation Third Mekong bridge (north). Link roads between third Mekong bridge and R13s and R16. Railway and bridge (possibly combined with third Mekong Road Bridge). Move airport.

Figure 5.3:Development Strategy Phase 3, 2021-2030

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Figure 5.4: Possible Urban Form in 2030

Phou Bachiang

Phou Salau University

Phou Malong

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Annexes

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Annex A: Statistics from Government Economic Development Plans and Other Sources

Table A1: National Socio-economic Development Plan towards 2020

Indicators Actual 2010 2020 Total population (million) 5.1 (1999) 6.7 8.3

Annual population growth rate (%) 2.8 (2000) 2.4 2.2

Life expectancy at birth (years) 59 (2000) 67 70 Infant mortality (deaths per 1,000 live births) 82 (1995-99) 40 20

Under 5 mortality (deaths per 1,000 live births) 107 (1995-99) 60 30 Maternal mortality (deaths per 100,000 live births) 530 (2000) 250 130 Access to clean water (% of population) 56 (2000) 100 100

Adult literacy rate (%) 73 (1998/99) 84 90

Annual GDP per capita (US$) 350 (2000) 700-750 1,200-1,500 Average annual GDP growth (%) 5.2 (1999) 7.0 7.0

Table A2: Socioeconomic Development Plan of Champasack Province

Socioeconomic development Achievement Target for Target for of 2006-2010 2010-2015 2020 Demography Population (inhabitant) 666,000 733,154 805,500 Economic & Annual growth rate/GPD (%) 9.8 11.1 11-12 structure Per capita income (USD) 1,097 1,955 3,000-3,500 Agriculture (%) 40 27.6 Manufacturing (%) 29 34.1 90 Service (%) 31 38.3 Foreign trade Annual import growth rate (%) 15 401.64 m USD Annual export growth Rate (%) 15 793.19 m USD Investment Public (%) 12.8 10 9 Foreign/Private/Credit (%) 52/2/33 75/15 22/9 Social service Education (%) 95 for primary 100 for Primary Complete education 80 for Secondary lower and secondary Life expectancy 63 65 70

Clean Water (%) 84.11 100 Labor (14-60 Y) 56

Source: 2010-2015 VI Five Year Socioeconomic Development Report and VII Five Year Socioeconomic Development Plan of Champasack, 23 October 2010

Table A3: Economic Data and estimate

Category Champasack Pakse District** Phonthong Province* district*** 2006- 2011- 2004- 2009- 2005- 2010- 2010 2015 2008 2014 2009 2014 Population (inhabitant) 87,232 91,137 Children from 6-10 95 100 95.83 100 96.28 98 years school enrolment (%) Life expectancy (year) 63 65 63 65 63 65 GDP (billion kips) 24,220 46,183 718.014 1,258.383 438.78 735.87 Economic Growth (%) 9.8 11.1 15.7 12 11.08 12

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Per capital incomes 1,097 1,955 1,100 1,773 900 (USD/capita/y) Economic structure Agriculture(%) 40 27.6 13.17 8.5 88.2 86 Industrial 29 34.1 36.36 38.5 7.07 Trading and 31 38.3% 50.47 53 6.93 service Import (million USD) 328 Export (Million USD) 181 Investment Public 12.8 10 22,921b 15.5 investment(%) Domestic 815.578b 56.14 investment 54% 75% (kip) Foreign 24.116m 11.41 investment (kip) People 33% 15% 4.637 b 16.95 (kip) Average tourists/annum 201,668 465,224 109,514 192,500 6,947 9,000

Sources: * Champasack Province, 2010. VI Socioeconomic Plan Implementation and VII Socioeconomic Development Plan ** Pakse District, 2009. Socioeconomic Development Report to the V Pakse Lao Revolution Party’s Congress *** Phonthong District, 2009. Socioeconomic Development Report to the VI Phonthong Lao Revolution Party’s Congress

Table A4: Land Use Classification in Champasack Province by Type

No. Type of Land Use Area (ha) Percentage 1 Agriculture 311,696 20.30 % 2 Forestry 1,080.033 66.67 % 3 Watershed 42,000 2.73 % 4 Industrial and Commercial 2,372 0.15 % 5 Transportation 5,362 0.349% 6 Cultural 37,197 2.42 % 7 Security and Defense 22,696 1.47 % 8 Construction 90,287 5.88% Total 1,535,000 100 %

Source: Champasack Province’s Land Use Management Strategy, 2010

Table A5: Land Use in Champasack Province by District

District Grass land Wet land Construction Agriculture Forestry Others (ha) (ha) (ha) (ha) (ha) (ha) Pakse 1,896 5,021 4,417 1,173 Sanasomboun 1,391 26,565 61,637 5,394 Bachiang 4,334 15,482 58,088 572 Pakxong 31,940 9,077 124,113 185,732 4,373 Pathoumphone Phonthong Champasack 1,136 4,622 27,077 49,028 3,510 Soukhouma 118 175 1,944 29,439 83,103 3,152 Mounlapamok 7,642 8,972 3,595 26,679 190,979 5,074 Khong 5,148 4,714 1,225 27,776 114,254 13,317

Source: Champasack Province’s Land Use Management Strategy, 2010

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Table A6: Urban Land Use in the Master Plan Area

According to the Pakse Urban Master Plan, there are 8 land use zones which define main urban development activities by following symbols:

Symbol Land use Number (ha) UA-I Old Urban Central Zone 85.08 UA-II New Urban Centre Zone UB Urban Inner Zone 457.60 UC Urban Suburb Zone 1,692.44 NA Future Development Zone 188.86 NCa Urban Green Space and Preservation 268.02 Forest Zone NCb Natural Green Space and Agriculture 2,694.47 Zones A Economic Zone 108.96 Total 5,580

Source: Urban Planning Institute, MCTPC, 1996. Report on Pakse Master Plan

Table A7: Bus Services in Pakse

Country City Station Pakse-ChongMek Km 2 Thailand Pakse-Oubon Pakse-Bang Kok Studying Pakse-Hanoi Vietnam (by R13 to R9) Pakse-Kouangji International Bus (by R13 to R9) Km 8N Transportation Pakse-Danang (by R13 to R9) Pakse-Kuyern (by R13 to R9) Pakse-Hochiminh (by R13 to R9) Pakse-Kontum (by R13 to R9) Pakse-DongHa (by R13 to R9) Cambodia Pakse-Phranompenh Km 8S Pakse-Nong Nok Khian Nong Nok Khian Checking Point Domestic Bus Inter provincial Pakse-VTE via Transportation Pakse-Kaisone Phomvihanh Km8S Pakse-Attapu Pakse-Xekong Pakse- Inner provincial Muang, Don Khong, 4000 Dao Heuang Market Island, Dondet-Donkhone, Cambodia border

Source: Mr. Phitsahong Phommavongsa, Head of Water way and land transportation, DPWT of Champasack, 29 November 2010) and Preparatory Survey on Formulation of Basic Strategies fir Regional Core Cities Development in Lao P.D.R, JICA, 2009

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Table A8: Road System from Urban Master Plan for Pakse (Year 2000)

Road type Width Length Surface areas (m) (m) (ha) National Road 50 8,964 44.820 Preliminary Road 30 10,600 31.800 Main Road 20 840 1.680 New Main Road 20 800 1.600 Connecting Road 15 31,820 47.730 New Connecting Roads 15 37,220 55.830 Distribute Road 12 101,156 121.387 New Distribute Road 12 7,222 8.664 Total 198,620 313.511

Source: Urban Planning Institute, MCTPC, 1996. Report on Pakse Master Plan

Table A9: Tourism Sites in Champasack Province from 2006 to 2020

Tourism source 2006 2007 2008 2009 2010 2015 2020 Natural 44 109 109 111 112 117 125 Cultural 28 57 57 59 60 64 67 Historical 31 40 40 40 40 41 43 Total 103 206 206 210 212 222 235

Source: Champasack Province Tourism Department, Tourism Strategic Development Report 2011-2020

Table A10: Number of Tourists to Champasack Province from 2006 to 2020

Tourists Average annual Estimated annual Estimated annual tourists tourists (2011-2015) tourists (2016-2020) (2006-2010) Domestic tourists 52,359 137,716 3276,996 International tourists 60,404 134,240 253,551 Border tourists 88,906 193,269 405,185 Total 201,668 456,224 935,732

Source: Champasack Province Tourism Department, Tourism Strategic Development Report 2011-2020

Table A11: Number of people and vehicles entrance by Vangtao- Border Check Point

Category Criteria 2008-2009 2009-2010 Entering people Total 141,182 133,711 Tourists 62,236 Departure people Total 144,475 146,378 Tourists 65,963 Entering vehicles 31,367 22,000 Departure vehicle 10,780 10,358

Source: Statistic Yearbook, 2009- 2010, Immigration Office, International Vangtao Checking Point, Champasack Province

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Table A12: Population of Champasack Province in 2010

District Code Name of District Pop in 2010 01 Pakse 86,432 02 Xanasomboun 68,380 03 Bachiang 53,553 04 Pakxong 70,475 05 Pathoumphone 56,439 06 Phonthong 93,594 07 Champasack 60,870 08 Soukkhouma 54,571 09 Mounlapamok 42,327 10 Khong 80,664 Total 667,305

Source: Statistic Year book, Champasack Province

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Annex B: Summary of Original of Destination Survey

Figure 1: Map of Pakse with zone for Original and destination and stops for passenger interview

Zone 8

Zone 1

Zone1 2 Zone 7

Zone 3 3 Zone 4 Zone 5 2

Zone 9 4 Zone 6

Zones for original and destination Stops for passenger interview

Figure 2: Matrix table of Origin and Final Destination Destination

Original trip Zone Zone Zone Zone Zone Zone Zone Zone Zone No 1 2 3 4 5 6 7 8 9 answer Total 13 50 119 27 30 66 73 21 72 37 Zone1 2 2 Zone2 42 26 1 2 2 7 1 3 Zone3 149 1 35 2 7 14 34 7 45 4 Zone4 31 4 1 1 10 7 2 3 3 Zone5 36 3 1 3 14 9 5 1 0 Zone6 61 6 16 12 8 8 4 1 5 1 Zone7 80 1 30 6 6 8 2 4 8 18 Zone8 24 1 10 1 5 2 2 Zone9 72 12 29 5 2 3 7 1 8 5 No information 11 3 1 1 2 1 1 1 1

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