Ho Chi Minh City’s Ring Road No. 3 Construction Project

A. Brief contents of the investment report:

 

1.      General:

The Ho Chi Minh City’s Ring Road No. 3 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 the Eastern region of 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 Nhon Trach industrial zone and Cai Mep – Thi Vai deep waters port, minimizing traffic jam in Ho Chi Minh City area.

2.      Contents and scale of investment:

3.1 Contents:

a) Alignment:

+       Start point: This point intersects with the Southern inter-regional expressway in Nhon Trach City, Dong Nai province.

+       End point: Binh Chanh district – Ho Chi Minh city.

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

Nhon Trach City ® Nhon Trach bridge (crossing Dong Nai river) ® Tan Van three-way crossroads (National Highway (NH.) No. 1A) ® Intersection at Hoa An bridge end (NH. No. 1K) ® Thu Dau Mot town (NH. No. 13) ® Binh Goi bridge (crossing Saigon river) ® Tan Hiep industrial zone (NH. No. 22) ® parallel to An Ha canal ® My Yen – Tan Buu industrial zone ( Binh Chanh district – Ho Chi Minh city)

          Note: The alignment 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.

c) Total length: 90,6 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 four (4) provinces and cities, namely Ho Chi Minh City (49.9 km), Dong Nai province (11.82 km), Binh Duong province (22.98 km) and Long An province (5.9 km).

4.      Total investment estimated cost:

The total preliminary estimated cost (based on prices in quarter IV/2009) is VND 41,616 s and is listed in the following table:

No. Cost item Estimated investment (billion VND)
Section 1 (26.3 Km) Section 2

(35.1 Km)

Section 3

(29.2 Km)

Sub- total
1 Construction costs 9,243 12,335 10,262 31,840
2 Project management, Investment consultancy, Other costs 1,386 1,850 1,539 4,776
3 Compensation for land acquisition costs 331 466 420 1,217
4 Contingencies 1,096 1,465 1,222 3,783
  Total 12,056 16,116 13,444 41,616

Note:

–       Section 1: From the start point (Southern inter-regional expressway in Nhon Trach city) to Tan Van intersection.

–       Section 2: From Tan Van intersection to NH. No. 22 intersection.

–       Section 3: From NH. No. 22 intersection to the end point (Ho Chi Minh City-Trung Luong expressway).

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 a 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/QD-TTg.

–       At present, TEDIS is urgently finalizing the pre-feasibility study report 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 to 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. 3 investment project should be divided into component projects in the following priority order:

–       Priority 1 : Tan Van→ Nhon Trach section (26.3km)

–       Priority 2 : Tan Van→ NH. No. 22 intersection section(35.1km)

–       Priority 3: NH. No. 22 intersection→ intersection with Ho Chi Minh City – Trung Luongexpressway section(29.2km).

3.     Early investment in Tan Van – Nhon Trach component project 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 land acquisition demarcation benchmarks.

–       Addition of a section connecting Thu Duc intersection to Ring Road No. 3 (Tan Van – Nhon Trach section with a length of about 4.0 km), total length of the component project: About 30.3 km.

–       The Employer: The MOT.

–       Total investment of phase 1 : About VND 7,000 billions (USD 372 millions) .

+ Civil works                                         : 256 million USD

+ Consultant, Management, other cost     : 55 million USD

+ Land acquisition                                   : 24 million USD

+ Contingency                                        : 37 million USD

–       Source of capital:

+       Land acquisition cost: Mobilization of local government capital for immediate implementation.

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

3.2 Implementation period : 2010 – 2013.