Ho Chi Minh City’s Ring Road No. 4 Construction Project.

A. Brief contents of the investment report:

 

1.      General:

The Ho Chi Minh City’s Ring Road No. 4 is one out of four important ring roads in the Vietnam’s expressway network development plan up to 2020 and the vision after 2020, which was approved by the Prime Minister in Decision No. 1734/QD-TTg dated December 1, 2008.

1.      Investment objectives:

–       Long-term objective: Socio-economic development of Ho Chi Minh City and of provinces in Southern Vietnam; especially in the Southern key economic area.

–       Short-term objective: Project preparation for achieving the objective consisting in putting the project into the construction stage, meeting the demand for transportation of goods of provinces in the Mekong Delta to the industrial zone at Hiep Phuoc port, to industrial zones in Cu Chi district, Binh Duong province, minimizing traffic jam in Ho Chi Minh City area.

2.      Contents and scale of investment:

3.1 Contents:

a) Alignment:

+       Start point: Phu My urban area under Ba Ria-Vung Tau province (intersects with Bien Hoa – Vung Tau Expressway at Km40+00).

+       End point: Industrial zone at Hiep Phuoc port, Ho Chi Minh City.

b) The route passes through the following basic control points: :

          Phu My urban area under Ba Ria-Vung Tau province (intersects with Bien Hoa – Vung Tau Expressway at Km40+00) ® Trang Bom (National Highway (NH.) No. 1A) ® Thu Bien bridge (crossing Dong Nai river) ® Ben Cat ® Phu Thuan bridge (crossing Saigon river) ® Cu Chi (NH. No. 22) ® Hau Nghia town ® Hoa Khanh – parallel to urban road 830 ® Ben Luc (Ho Chi Minh City – Trung Luong expressway) ® Long Hiep industrial zone (NH. No. 1A) ® NH. No. 50 ® Industrial zone at Hiep Phuoc port complex.

          Note:

–       The alignment from Trang Bom to Hiep Phuoc remains unchanged and is the same as the alignment which was approved by the Prime Minister in the following Decisions:

+        Decision No. 101/QD-TTg dated January 22, 2007 concerning the transport planning of Ho Chi Minh City;

+        Decision No. 1734/QD-TTg dated December 1, 2008 concerning the approval of Vietnam’s expressway network up to 2020 and the vision after 2020;

+        Decision No. 24/QD-TTg dated January 6, 2010 concerning the adjustment of the construction planning of Ho Chi Minh City up to 2025.

–       The alignment from Phu My – Trang Bom: The consultant carried out a new study based on agreements with Dong Nai and Ba Ria – Vung Tau Provinces.

c) Total length: The total length of Ring Road No. 4 is 196,5 Km.

3.2 Investment scale:

–       Urban expressway , design speed in range of 80-100km/h.

–       Cross-section size: 68.5m in width (including 7m sidewalk on each side), of which:

+       For the urban expressway: 6 lanes for motorized vehicles (3.75m) + 2 emergency stop lanes (3.00m).

+       For parallel roads: 2 mixed vehicles lanes (3.5m) for each side.

–       Right of way: 100m -120m in width.

3.      Construction location: The alignment through the area of five (5) provinces and cities, namely Ho Chi Minh City (20,3Km), Dong Nai province (46,9Km), Binh Duong province (44,0Km), Long An province (68,0Km) and Ba Ria-Vung Tau province (17,3Km).

4.      Estimated total investment:

        The total preliminary estimated cost (based on prices in quarter II/2010) is VND 79.401 billions and is listed in the following table:

No. Cost items Estimated investment (billion VND)
Section 1 (45,5 Km) Section 2 (51,9 Km) Section 3

(22,8 Km)

Section 4

(41,6 Km)

Section 5

(34,7 Km)

Sub-total (196,5Km)
1 Construction costs 12.792 14.592 6.410 14.620 12.195 60.608
2 Project management, Investment consultancy and Other costs 1.919 2.189 962 2.193 1.829 9.091
3 Compensation for land acquisition costs 575 656 288 526 438 2.483
4 Contingency 1.529 1.744 766 1.734 1.446 7.218
Total 16.815 19.180 8.426 19.072 15.909 79.401

Note:

–       Section 1: Phu My (intersection Bien Hoa – Vung Tau Expressway) to Trang Bom (QL1A).

–       Section 2: Trang Bom to NH. No. 13 intersection (Tan Uyen – Binh Duong).

–       Section 3: From NH. No. 13 intersection (Tan Uyen – Binh Duong) to N. H. No. 22 intersection (Cu Chi – Ho Chi Minh City).

–       Section 4: From NH. No. 22 intersection (Cu Chi – Ho Chi Minh City) to Ho Chi Minh City – Trung Luong expressway.

–       Section 5: From Ho Chi Minh City – Trung Luong expressway (Ben Luc) to the end point (HiepPhuocPort complex, Ho Chi Minh City).

5.      Investment budget: Intention is to mobilize various sources of capital in a flexibleinvestment form: BOT, PPP, BT, ODA loans, state budget.

6.      Project implementation period: 2010 – 2016.

B. Implementation process:

–       The pre-feasibility study report was considered and reviewed by the MOT at the meeting held on March 11, 2010, and based on the conclusion of the MOT’s leader, the project scale complies with the Prime Minister’s Decision No. 1734/QĐ-TTg.

–       At present, TEDIS is urgently finalizing the pre-feasibility study based on appraisal opinions.

C. Recommendation:

    Based on the Consultant’s study results and the economic development situation of the area together with the requirement for development of transportation infrastructure, it is recommended as follows:

1.     The component project “benchmarks setting out for Land acquisition and right-of-way” should be implemented immediately for managing and keeping land for construction of the project.

–       Source of capital: The State’s budgetary capital.

–       Implementation progress schedule: 2010 – 2011.

2.     The Ring Road No. 4 investment project should be divided into component projects in the following priority order:

–       Priority 1 : Ben Luc→ Hiep Phuoc section (end point) (34.7km)

–       Priority 2 : NH. No. 22 intersection → intersection with Ho Chi Minh City – Trung Luongexpressway section(46.1km)

–       Priority 3: NH.No.13 intersection→ NH. No. 22 intersection section (22.8km).

–       Priority 4: NH. No. 1A-Trang Bom (start point)→ NH. No. 13 intersection section(51.9km).

–       Priority 5: Phu My to Trang Bom (45.5km).

3.     Early investment in Ben Luc – Hiep Phuoc component project (Section 5) according to the following contents:

3.1 Division of investment into phases:

–       Division of investment into two (2) phases. Phase 1: Investment for construction of 4 lanes; land acquisition and landmark benchmarks setting out based on the final phase scale; Acquisition of land within demarcation lines.

–       Total investment of phase 1 : About VND 7,868 billions (422 millions USD).

+ Civil works                                        : 293 million USD

+ Consultant, Management, other cost     : 44 million USD

+ Land acquisition                                    : 47 million USD

+ Contingency                                       : 38 million USD

–       Source of capital:

+   Land acquisition cost: Mobilization of local government capital and central state budgetary capital for implementation.

+   Construction cost: ODA capital and mobilization of other sources of capital in PPP and BOT forms.

3.2 Implementation period : 2010 – 2013.

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