STUDY ON ECONOMIC PARTNERSHIP PROJECTS IN DEVELOPING COUNTRIES IN FISCAL YEAR 2017 STUDY ON YANGON INNER RING ROAD CONSTRUCTION PROJECT IN THE REPUBLIC OF THE UNION OF MYANMAR Final Report February 2018 Prepared for: Ministry of Economy, Trade and Industry Prepared by: JFE Engineering Corporation Oriental Consultants Global Co., Ltd. Metropolitan Expressway Company Limited Marubeni Corporation Preface This report is prepared by JFE engineering Corporation, Oriental Consultants Global Co. Ltd., Metropolitan Expressway Company Limited and Marubeni Corporation as the result of “Study on the Economic Partnership Projects in Developing Countries in Fiscal Year 2017” for the Ministry of Economy, Trade, and Industry. The study presented here is titled “Study on YANGON INNER RING ROAD CONSTRUCTION PROJECT IN THE REPUBLIC OF THE UNION OF MYANMAR”. The project aims to construct 24km long motor way along with its O&M in Yangon, former capital city of Myanmar, by PPP scheme. As in other Asian major cities, in Yangon the number of vehicles has increased sharply with the rapid population increase. As a result, traffic congestion occurs through daytime although it only occurred in the morning and evening commuting time become a big social problem. This survey is to study the countermeasure for this urgent issue and contributes to the development of Yangon. We hope this report will contribute to the realization of the project mentioned above and serve as reference for the related organizations and parties in Japan. February 2018 JFE Engineering Corporation Oriental Consultants Global Co., Ltd. Metropolitan Expressway Company Limited Marubeni Corporation Project Area Map Source: Study Team by Internet Information Table of Contents Preface Project Area Map Table of Contents Table list Figure List Abbreviations Page Executive Summary (1) Outline of the Project ......................................................................................................................................... ES-1 (2) Summary of Myanmar and Road Bridge Sector in Myanmar ............................................................................. ES-2 (3) Project Planning (Traffic, Highway, Bridge, Construction Planning and Cost Estimation) ................................ ES-4 (4) Operation & Maintenance Plan ......................................................................................................................... ES-19 (5) Economic and Financial Analysis ...................................................................................................................... ES-21 (6) Study for on Project Implementation under PPP Scheme .................................................................................. ES-22 Chapter 1 Outline of the project 1-1 Background and necessity of the Project ............................................................................................................ 1-1 (1) Administrative organization of Yangon .................................................................................................................. 1-1 (2) Roads in Yangon ..................................................................................................................................................... 1-1 (3) Road transportation of Yangon City ....................................................................................................................... 1-4 (4) The Republic of the Union of Myanmar, a strategic urban development plan of greater Yangon ......................... 1-4 (5) Present status and future prospects of the car numbers in Myanmar ...................................................................... 1-6 1-2 Outline of the project............................................................................................................................................. 1-7 1-3 Basic policy of contents for the Project ............................................................................................................... 1-8 (1) Highway Design ..................................................................................................................................................... 1-8 (2) Cross Section .......................................................................................................................................................... 1-8 (3) Location of Ramp ................................................................................................................................................... 1-8 (4) Ramp Type .............................................................................................................................................................. 1-8 (5) Traffic Demand Forecast ........................................................................................................................................ 1-8 (6) Bridge Type ............................................................................................................................................................ 1-8 (7) Cost Estimation ...................................................................................................................................................... 1-9 (8) Operation and Maintenance .................................................................................................................................... 1-9 (9) PPP Implementation Study ..................................................................................................................................... 1-9 Chapter 2 Overview of the Host Country and Sectors 2-1 Economic and financial conditions of Myanmar .................................................................................................. 2-1 2-2 Overview of the project target sector .................................................................................................................... 2-3 (1) Road Conditions in Myanmar ................................................................................................................................ 2-3 (2) Bridge Conditions in Myanmar.............................................................................................................................. 2-3 (3) Budget for Road and Bridge .................................................................................................................................. 2-8 (4) Involvement of Private sector（BOT） ................................................................................................................ 2-9 2-3 Overview of the project target area ..................................................................................................................... 2-12 (1) Geography of Yangon .......................................................................................................................................... 2-12 (2) Geology of Yangon .............................................................................................................................................. 2-12 (3) Climate of Yangon ............................................................................................................................................... 2-13 (4) Economy of Yangon ............................................................................................................................................. 2-13 (5) Ports of Yangon .................................................................................................................................................... 2-14 2-4 Implementation capabilities of the counterpart ................................................................................................... 2-15 Chapter 3 Methodology 3-1 Contents of Survey ............................................................................................................................................. 3-1 3-2 Study system and methodology .......................................................................................................................... 3-2 (1) Study system .......................................................................................................................................................... 3-2 (2) Study methodology ................................................................................................................................................ 3-3 3-3 Study schedule....................................................................................................................................................... 3-5 (1) Outline ................................................................................................................................................................... 3-5 (2) Site survey.............................................................................................................................................................. 3-6 (3) Survey in Japan ....................................................................................................................................................... 3-6 Chapter 4 Traffic Demand Forecast 4-1 Purpose of Study ................................................................................................................................................. 4-1 4-2 Basic Assumption and Consideration ................................................................................................................. 4-1 (1) Introduction ...........................................................................................................................................................