Method Statement For Tower Crane Footing

TABLE OF CONTENTS
PREFACE.............................................................................................................................. 3
CHAPTER I. SUMMARY ABOUT THE PROJECT............................................................3
1.1. Description about the project, proposing agency, project implementation agency and
project operation agency....................................................................................................3
1.1.1. Description about the project...............................................................................3
1.1.2. Project-relevant agenices.....................................................................................8
1.2. Project implementation schedule................................................................................9
1.2.2. Investment preparation progress..........................................................................9
1.2.3. Progress of investment implementation...............................................................9
1.3. Project implementation site........................................................................................9
1.4. Investment for the project.........................................................................................10
1.4.1. Total investment.....................................................................................................10
1.4.2. Capital for the project........................................................................................10
CHAPTER II. BACKGROUND AND BASIS OF THE PROJECT....................................11
2.1. Project Background...................................................................................................11
2.2. Basis for identification of the project necessary........................................................11
2.2.1. Macro environment and development policies of the country............................11
2.2.2. Project conditions and background....................................................................14
2.2.3. Market...............................................................................................................16
Basic for the project preparation..................................................................................19
2.3. Project objectives......................................................................................................21
2.3.1. Genenral objectives of the project......................................................................21
2.3.2. Specific objectives of the project.......................................................................21
2.4. Adaptability and orientation of the drainage & sewage planning for urban areas and
industrial zones in Vietnam..............................................................................................22
2.4.1. Orientation for the drainage & sewage development in urban areas and industrial
zones in Vietnam.........................................................................................................22
2.4.2. The master plan of urban drainage & sewage system of HCMC made by JICA.
..................................................................................................................................... 22
2.4.3 Conformability with the flood control of HCMC...............................................24
2.4.4. Conformability with the master construction planning of HCMC.....................26
2.4.5. Conformability with the master construction planning of District 2 to 2020.....29

2.5. The relation with other related projects.....................................................................30
2.6. Necessity for investment...........................................................................................31
CHAPTER III. PROJECT DISCRIPTION: DESIGN, RESORUCES AND RESULTS.....32
3.1. Project scale.............................................................................................................. 32
3.1.1. Project grade and designed frequency................................................................32
3.1.2. Proposed project scale.......................................................................................32
3.2. 3.2. Natural condition and socio-economic conditions of the project area................36
3.2.1. Geological condition..........................................................................................36
3.2.2. Features of Topography.....................................................................................36
3.2.3. Geological conditions........................................................................................37
3.2.4. Climate condition...............................................................................................37
3.2.5. Features of hydrologic.......................................................................................39
3.2.6. Social economic condition of the project area...................................................41
3.2.7. Technical infrastructure.....................................................................................43
3.2.8. Drainage status..................................................................................................43
3.2.9. Flood condition status in District 2....................................................................45
3.2.10. Sewage status...................................................................................................46
3.3. Technology selection................................................................................................48
3.3.1. Technical solutions to urban drainage & sewage...............................................48
3.3.2. Analysis on selection of the drainage & sewage system in the project area.......49
3.3.3. Identification of drainage system scale..............................................................50
3.3.4. Identification of sewage system scale................................................................66
3.3.4. Priority order for investment in the sewage system...........................................74
3.3.5 Household connection.........................................................................................78
3.4. Plan for site clearance and resettlement....................................................................81
3.4.1. The scope of site clearance and impacts of resettlement....................................81
3.4.2. Policeis & rights................................................................................................81
3.4.3. Public consultation and claim settlement mechanism........................................82
3.4.4. Cost estimate and budget for compensation.......................................................82
3.5. Environment.............................................................................................................82
3.5.1. Standards and criteria.........................................................................................82

3.5.2. Environemtanl protection measures...................................................................84
3.5.3 Organsiation........................................................................................................85
CHAPTER IV. TOTAL INVESTMENT COST, CAPTIAL SOURCE ALLOCATION AND
FINANCIAL PLAN............................................................................................................87
4.1. Total investment cost................................................................................................87
4.1.1. Basis for total investment cost...........................................................................87
4.1.2. Total investment cost.........................................................................................88
4.2. Capital sources..........................................................................................................89
4.2.1. Capital sources...................................................................................................89
4.2.2. Plan for capital source allocation.......................................................................90
4.2.3. Distribution of investment period......................................................................90
4.3. Financial mechanism................................................................................................91
4.3.1. Financial mechanism of World Bank for Vietnam.............................................91
4.3.2. Financial mechanism of Vietnam for the project Owner....................................91
4.3.2.Financial conditions............................................................................................91
4.4. Calculation of sewage charge...................................................................................92
4.4.1. Basis for calculation..........................................................................................92
4.5.3. Determination of sewage charge........................................................................93
CHAPTER V. MANAGEMENT OF PERFORMANCE AND OPERATION OF THE
PROJECT............................................................................................................................ 97
5.1. Main data on the agency performing the project.......................................................97
5.2. Project implementation management........................................................................97
5.2.1. Organization of project implementation management.......................................97
5.2.2. Role of organizations, functional agencies organizsing the project
implementation............................................................................................................98
5.3. Project implementation schedule............................................................................100
5.4. Tender control.........................................................................................................101
5.4.1. Tender procedures and principles.....................................................................101
5.4.2. Division of bidding packages...........................................................................101
CHAPTER VI. PROJECT EVALUATION.......................................................................105
6.1. Financial evaluation................................................................................................105
6.1.1. Financial evaulation.........................................................................................105

6.1.2. Repayment ability of the project:.....................................................................111
6.1.3. Sensitivity analysis of financial forecasts.........................................................111
6.2. Evaluation on the social impacts.............................................................................113
6.2.1. Drainage & sewage and environmental sanitary.............................................113
6.2.2.Living condtion of residents and economic development:................................113
6.2.3.Effect of the project on povery reduction..........................................................114
6.3. Evaluation on the project feasibility........................................................................114
6.3.1. Technical feasibility:........................................................................................114
6.3.2. Environmetnal feasibility:................................................................................114
6.3.3. Financial feasibility:.........................................................................................114
6.4. Rish evaluation.......................................................................................................115
6.4.1. Commercial risks.............................................................................................115
6.4.2. Socio-Economic Risk.......................................................................................116
6.4.3. Institutional risks..............................................................................................118
6.4.4. Technical risks.................................................................................................118
6.4.5. Risks regarding customers...............................................................................120
CONCLUSION AND PROPOSAL...................................................................................121
1. Conclusion................................................................................................................. 121
2. Proposal..................................................................................................................... 121
LIST OF FIGURES
Figure 1.General planning of District 2 to 2020....................................................................9

Figure 2. General layout of District 2..................................................................................12
Figure 3. S phn chia lu vc thot nc thi Thnh ph theo quy hoch JICA..........22
Figure 4: Mapping planning about flood control in HCMC................................................24
Figure 5. Annual rainfall map of Sai Gon-Dong Nai river basin.........................................37
Figure 6. Bn hin trng nn v ngp ng.....................................................................45
Figure 7. Map of Thao Dien Basin Basin 1......................................................................54
Figure 8. Map of Tran Nao Basin Basin 2........................................................................54
Figure 9. Map of Thu Thiem Urban area Basin Basin 3...................................................55
Figure 10. Map of An Phu New Urban Area Basin Basin 4 4...........................................56
Figure 11. Bn lu vc 5................................................................................................57
Figure 12. Bn lu vc 6................................................................................................58
Figure 13. Map of basins no. 7 and 8...................................................................................59
Figure 14. Map of prioritize areas.......................................................................................77
3.5 Preferences............................................................................................................100
LIST OF TABLES
Table 1. Details of items in the rainwater collection system..................................................4

Bng 2. Thng k cc Items cng trnh System thu gom nc thi sinh hot........................6
Table 3. The area divided based on the elevation at the downstream of Sai Gon Dong Nai
............................................................................................................................................. 16
Table 4. Water supply demand and of the city to 2025........................................................17
Table 5. Wastewater discharge basins in HCMC to 2025....................................................27
Table 6. Statistic table of items in the rainwater collection system......................................31
Bng 7. Thng k cc Items cng trnh System thu gom nc thi sinh hot......................33
Table 8. Maximum rainfall in Ho Chi Minh City................................................................37
Table 9. Water level at Phu An station Sai Gon river by frequencies................................39
Table 10. Population of wards in District 2 in 2011.............................................................42
Table 11. Scale of bridges on the left side of Sai Gon River in accordance with irrigation
planning 1547...................................................................................................................... 50
Table 12. The expected scale of channels in accordane with the Planning 1547.................51
Table 13. Analysis on the investment in items of draiange system.....................................61
Table 14. Scale of works under the proposed draiange system............................................63
Table 15. Norm for water supply in accordance with the proposal of the city.....................65
Table 18. Estimated population scale in District 2 to 2020..................................................66
Bng 19. Bng tnh lu lng nc thi qun 2 trong 1 ngy.............................................67
Table 20. The scale of the sewage system in District 2........................................................71
Table 21. Evaluation of the priorty cretiera for the drainage system....................................74
Table 22. Evaluation of the priorty cretiera for the sewage system with grade 3.................74
Table 23. Evaluation of the priorty cretiera for the sewage system with grade 2.................75
Table Estimates about connection fees with the sewage system regarding households. 79
Bng 24. Tin cc bo co mi trng...........................................................................84
Bng 25. Thng k vai tr v chc nng v mi trng ca cc Unit tham gia...................84
Table: .... Summary of work construction cost estimate......................................................87
Table: .... Allocation of capital to be used............................................................................89
Table of capital allocation....................................................................................................89
Table : Structure of capital using in each year................................................................90
Table : Project implementation schedule.........................................................................99
3.5 Preferences............................................................................................................100
Risk identification and recovery measures in term of technology......................................118
PREFACE
Hochiminh Cit is the biggest city as well as a key economic, cultural, scientific, technical &
political center in the country with 19 urban districts and 5 sub-districts with total natural area of
around 2095,01 km2 with the total current population of around 7.5 million persons and 2.5 million
visitors and temporary resident with the average density of 4773 persons/km2. HCMC always has
had a very important role in the Vietnam economy. Thanks to the favorable natural condition,
HCMC is the key traffic junction of Vietnam and South East Asia, including roads, railways,
waterways and air.
In recent years, HCMC has faced problems of a big metropolitan area with too rapid growth
of population. In the urban area, the roads have become too narrow with high frequency of traffic
jam, public transport system is inefficient and environment is being pollution due to traffic
vehicles, construction site and industrial zones, etc. In addition the most serious matter of the city
at the moment is the flood condition and collection of domestic waste. In the recent years, flood
condition has often occurred, especially in the high tidal day. The flood condition is caused by
different reasons, such as high tide in combination with the increase of coastal water and heavy and
sudden rains, infrastructure, especially rainwater collection system, wastewater treatment & solid
waste management, which are not priotized for investment and have not meet the urban
development, affecting life, health and environment of residents as well as socio-economic
development of the city significantly.
Regarding HCMC in general and District 2 in particular, the investment in construction of a
system for sewage, wastewater collection and treatment is very necessary. However the
construction of infrastructure projects with a large amount of capital is extremely difficult . For
years, the ODA fund for infrastructure investment has been invested throughout Vietnam including
the ODA of World Bank which is dispersed in different localities in the country. With the approval
of the Government and Ministries, a drainage and sewage project in the period of 2002-2012
(Project - Phase 1) in Hochiminh is invested by ODA of World Bank. Up to now, the works of the
Project in this period has proved the efficiency and improved the environmental condition
significantly, contribution to the great benefit for the local residents.
The feasible study is prepared in order to propose design for sewage and drainage system in
order to increase the service coverage of the project for the area in the Phase II, which have not
been archived in the Project - Phase I. The project is the consecutive step to improve the overall
environmental in Hochiminh City through the construction of drainage & sewage system of the
area in Phase II.
This report is the basis for defining the invested volume, total investment fund and
effectiveness analysis of the project in terms of finance, socio-economy. In addition, the report also
represent about matters related to environmental impact, resettlement, institutional issues,
management and operation, etc.
Page 3
CHAPTER I. SUMMARY ABOUT THE PROJECT

1.1. Description about the project, proposing agency, project implementation agency and
project operation agency.
1.1.1. Description about the project
a. Project objectives
In 1999, World Bank (WB) and the Government of Vietnam agreed to develop the support
program for the water sector in Vietnam. The HCMC Environmental Sanitation Project is one of
the items under the support program.
In 2001, the HCMC Environmental Sanitation Project was constructed under the agreement
and support of the Government of Vietnam and WB. The project was prepared with the purpose of
rehabilitation and construction of drainage & sewage system for some regions in the urban areas of
Hochiminh City. Up to now, the works under the project has proved the efficiency and improved
the environmental condition significantly in Hochiminh City, contribution to the great benefit for
the local residents.
In order to promote the stated-above benefits as well as solve the existing problems in the
area which area not invested satisfactorily, HCMC Peoples Committee has a policy to continue to
implement the Project - Phase 2. The project Phase 2 was implemented with the total funds of the
World Bank (WB) and city budgets of $ 480 million. The project will be approved by the MPC,
and then submitted to the WB. If accepted by WB, the project shall be commenced and completed
for operation in 2019.
The general objective of the project:
- Improve the environmental condition in HCMC through construction of drainage &
sewage systems.
- Increase the durability of the urban infrastructure and service in HCMC.
- Reduce environmental pollution for the urban area.
- Minimize the epidemics caused by the stagnant and untreated water. The rainwater and
wastewater in most residential areas of the city will be discharged properly to eliminate negative
impacts on the people's health and activities of the city caused by water discharge.
- Improve awareness about the creation and preservation of a salubrious environment.
Strengthen capacity of management operational regarding drainage & sewage system of Ho Chi
Minh City Urban Drainage Company Ltd.
- Create a favorable condition to attract more investors and people to live in new urban
areas as well as attract investors in terms of production and business to invest in industrial zones &
tourism areas.
Specific objectives of the project: Construct the drainage & sewage system in District 2,
Hochiminh City in order to meet socio-economic development planning of the city in the period of
2013 2020, including:
-
Construct rainwater and wastewater collection systems in District 2, HCMC to reduce

the flood condition in heavy rains.
Install gates at the outlets of the drainage system in order to reduce the flood condition
in case of high tide and increase capacity of rainwater reserve in the pipeline system.
Construct domestic wastewater system at the secondary and third grade from
households and public works to connect with the common wastewater collection
Page 4
pipeline of the city and transfer to the wastewater treatment plant in order to reduce
water pollution source and improve health of the community as well as contribute to the
living condition of the people.
Support to construct domestic wastewater system and septic tank for households having
low income in District 2 to connect with the wastewater collection network with grade
3.
b. Main components of the project

The main components of the project are as follows:
-
The systems for rainwater collection, discharge system and flood control in case of
raining condition and high tide including:
Table 1. Details of items in the rainwater collection system
No.
System
Construction
Thao Dien
Area
Outlet
II
Items
Construction
Soth of Thao Dien
Unit
Quantity
Pipeline
- Pipeline 1500
3.570
- Pipeline 1200
3.770
- Pipeline 1000
Outlet
- Outlet 1500
540
pcs
- Outlet 1200
pcs
- Outlet 1000
Manhole
- Manhole with pipeline 1500
pcs
pcs
85
pcs
88

- Rainwater collection chamber
Outlet
- Outlet 1000
pcs
14
pcs
187
pcs
- Outlet 800
pcs
10
- Outlet 600
pcs
13
- Outlet 400
Pipeline
- Pipeline 1500
pcs
1.493
- Pipeline 1200
2.406
- Pipeline 1000
886
- Pipeline 800
Outlet
- Outlet 1500
1.119
pcs
- Outlet 1000
pcs
- Outlet 800
pcs
Page 5
No.
Area
System
Outlet
III
Items
Construction
Binh Trung Dong - Binh Trung Tay - Cat lai
Outlet
Unit
Quantity
Manhole
pcs
38
pcs
58
pcs
24

Outlet
- Outlet 800
pcs
28
pcs
148
pcs
- Outlet 600
pcs
- Outlet 400
- Outlet of open dykes B = 500
Pipeline
- Box culvert 2000x2000
- Pipeline 2000
pcs
pcs
m
m
m
2
701
1.610
- Pipeline 1500
2.612
- Pipeline 1200
431
- Pipeline 1000
4.768
- Pipeline 800
5.141
- Pipeline 600
858
- Pipeline 500
Outlet
- Outlet of box culvert
- Outlet 2000
484
pcs
pcs
1
2
- Outlet 1500
pcs
- Outlet 1200
pcs
- Outlet 1000
Manhole
- Manhole with culvert box Bxh
(2000x2000)
pcs
pcs
15
pcs
36
pcs
58
pcs
12
pcs
107
pcs
118
pcs
21

Outlet
- Outlet of box culvert 2000x2000
pcs
13
pcs
380
pcs
pcs
1
1
Page 6
No.
Area
System
Items
- Outlet 1500
Unit
pcs
Quantity
1
- Outlet 1200
pcs
- Outlet 1000
pcs
- Outlet 800
pcs
- Outlet 600
pcs
- Outlet 400
pcs
Collection system of domestic wastewater with Grade 2, Grade 3.

Table 2. Items of domestic wastewater collection systems
No.
Area
Network
Items
Pipeline
- Pipeline 500
Grade 2
Thao Dien
Grade 3
Grade 2
II
Nam Thao
Dien
Grade 3
III
Binh Trung
Dong - Binh
Grade 2
- Pipeline 400
- Pipeline crossing channels
Cross section with the existing
facilities
Manhole
- Manhole 500
- Manhole 400
Pipeline
- Pipeline 300
facilities
Manhole
- Manhole 300
Pipeline
- Pipeline 1000
- Pipeline 800
- Pipeline crossing over channels
facilities
Manhole
- Manhole 1000
- Manhole 800
Pipeline
- Pipeline 300
facilities
Manhole
- Manhole 300
Pipeline
- Pipeline 1200
Unit
Quantity
7.663
2.836
m
point
207
18
pcs
143
pcs
56
29.882
point
176
pcs
872
2.199
1.241
m
point
62
6
pcs
44
pcs
26
12.413
point
23
pcs
436
1.623
Page 7
No.
Area
Trung Tay Cat lai
Network
Grade 3
IV
Other areas
Grade 2
Items
- Pipeline 1000
Unit
m
Quantity
1.340
- Pipeline 600
3.190
- Pipeline 500
facilities
Manhole
- Manhole 1200
1.946
m
point
80
30
pcs
34
- Manhole 1000
pcs
26
- Manhole 600
pcs
66
- Manhole 500
Pipeline
- Pipeline 300
facilities
Manhole
- Manhole 300
Pipeline
- Pipeline 1500
pcs
42
41.165
point
102
pcs
1.196
1.679
- Pipeline 1200
3.528
- Pipeline 800
607
- Pipeline 600
1.201
- Pipeline 500
5.985
- Pipeline 400
- Pipeline crossing over channels
Manhole
- Manhole 1500
3.740
840
pcs
41
- Manhole 1200
pcs
84
- Manhole 800
pcs
16
- Manhole 600
pcs
30
- Manhole 500
pcs
142
- Manhole 400
Transition pumping station
pcs
89
station
1.1.2. Project-relevant agencies

Project-proposing agency: Peoples Committee of Hochiminh City.
Project Investor: Department of Transport.
Representative of the Investor: HCMC PMU of Environmental Sanitation Project.
Project operation agency: HCMC Steering Center of the Urban Flood Control Program
Page 8
1.2. Project implementation schedule
no
content
1
2
Making an investment project construction 06/2013

Appraisal from the Vietnam government agencies
(government departments), edit the project
3 submit to World Bank for evaluation
4 Union appraisal of WB travel survey in Ho Chi Minh City
5 complete project
6 Project Acceptance of WB
7 tender dossier, browser to WB
8 Bid evaluation and approval of tender results, negotiating
contracts
9 Commencement of construction
10 Training, operating manuals, commissioning and handover
of projects
time
06/2013
08/2013
10/2013
11/2013
12/2013
01/2014
03/2014
05/2014
09/2014
01/2017
1.3. Project implementation site.

Project implementation site: District 2 Hochiminh City.
Page 9
Figure 1.General planning of District 2 to 2020.

1.4. Investment for the project
1.4.1. Total investment.
Total investment is 2.724.557.618.114 vnd, including
1.737.551.000.000
VN
Equipment costs
8.242.172.730
VN
Compensation costs
4.469.445.384
VN
Project management costs
12.760.000.000
VN
Consultant costs for investment &

construction
Other costs
58.699.000.000
VN
13.062.000.000
VN
889.774.000.000
VN
Construction costs
Contingency costs
1.4.2. Capital for the project.
The counter-part fund from the city budget is 280.710.789.031 VN for Compensation,
Project management, Consultant costs for investment & construction , reserve volumes arising.
The ODA fund from WB is 2.443.846.829.083 for Construction, inflation reserve.
Page 10
CHAPTER II. BACKGROUND AND BASIS OF THE PROJECT

2.1. Project Background.
Hochiminh City is the biggest city as well as a key economic, cultural, scientific, technical
& political center in the country. In recent years, HCMC has faced problems of a big metropolitan
area with too rapid growth of population, especially the flood control and synchronous and
sustainable construction of infrastructure, which is one of the six groundbreaking programs in the
resolution of the IXth Congress Party in the term of 2010 2015, "The flood program control shall
focus on the flood control in the city center (around 100 km 2); flood control and prevention of in
new points in other 5 areas (around 580 km2).
In order to solve the flood condition in the city, the city has focused on implementation of
the measures as follows:
- The master drainage & sewage planning of the city up to 2020 which is financed by JICA
for implementation (Hereinafter referred to JICA planning) and approved by the Prime Minister in
Decision no. 752/Q-TTg dated 19/6/2001).
- The irrigation planning for flood control for HCMC prepared by the Ministry of
Agriculture and Rural Development and approved by the Prime Minister in Decision no.
1547/Q-TTg dated 28/10/2008.
Besides, based on the approved drainage plan the city has called for and used ODA funds in
recent years for the 4 prioritized drainage & sewage projects for the flood control and
environmental improvement in the city center, including:
+ The Ho Chi Minh City Environmental Sanitation (Nhieu Loc-Thi Nghe Basin) Project
+ Water Environment Improvement Project for Tau Hu Ben Nghe Doi Channel Te
Channel basin
+ The HCMC Environmental Sanitation Project (Hang Bang Sub-project)
+ The Tan Hoa - Lo Gom Channel Sanitation and Urban Upgrading Project
In addition, the phase 1 of the Project of Water drainage and environment improvement
alongside Tham Luong -Ben Cat - Rach Nuoc Len (including 3 partial projects) has been carried
out in accordance with the approval of the city and the phase 2 of the project is now being
implemented and called for investment.
The HCMC Environmental Sanitary Project Phase 2 in District 2 has been implemented
with loans from OAD of WB and budget funds of HCMC with the total investment of 480 million
USD. The Ho Chi Minh City Environmental Sanitation (Nhieu Loc-Thi Nghe Basin) Project
Management Unit under HCMC Steering Center of the Urban Flood Control Program the
investor shall submit documents to HCMC PC for approval and then submit WB. The construction
of the project is expected to be commenced and ready for operation in 2019.
2.2. Basis for identification of the project necessary
2.2.1. Macro environment and development policies of the country.
District 2 is one of the districts located in the North East of Hochiminh City and adjacent:
To Thu Duc District on the north.
Page 11
To Sai Gon River on the South separating the district with District 7, to Nha Be River
separating with Nhon Trach District, Dong Nai Province.
To Sai Gon River on the East separating with Binh Thanh District, District 1 and District 4
in order from the North to the South.
To District 9 on the East.
There are 11 districts and 51 residential quarters hamlets, 562 residential groups, in which
Thanh My Loi Ward is the largest area of 1325.44 ha, accounting for 26.41% and Thu Thiem Ward
is the smallest area of 150.42 ha, accounting for 3.0%.
The genera, objectives of the socio-economic development of the district in the period of
2011 2015 are to achieve the rapid and sustainable economic growth and enhance the
development potentials for the country. The city is striving to achieve the following objectives:
GDP growth rate is 7 8% / year on the average of 5 years, the reduction of poverty rate is 2 3%/
year as well as the institution of the market economy shall be complete and environment of
business and investment shall be equal, transparent, stable in order to release difficulties and
promote investment and development of production and business.
Promote the advantages and strength of sectors and regions, especially focusing on the
development and production of highly added-value products. Develop agriculture based on
promoting the comparative advantages of regions and localities. Encourage the development of
different economic sectors in parallel with continuing innovation and improvement of economic
efficiency of state-own sectors in order to play as the decisive role in the market economy with
socialist orientation. At the same time, all favorable conditions shall be facilitated to develop the
private sector and enterprises with foreign investment.
The main objectives in the period is to increase the average GDP growth rate of 7% 8%,
the export growth rate on average of 12%, the estimated national budget of around 22 23% and
the investment rate for development of about 40 41% of GDP. The five experienced lessons to
cope with the global finance crisis were drafted.
The socio-economic plan in the 2011 2015 was prepared in accordance with socioeconomic and environment condition. Up to the year of 2015, the number of trained workers will
account for 55% of the total population, the poverty rate will reduce 2%/year, and the unemployed
rate will reduced to 4%. Regarding the development of urban infrastructure and residential area, the
objectives is to modernize and develop the infrastructure system in urban area, to improve water
supply system and to supply water sufficiently for the city and industrial zones.
Page 12
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Page 13
2.2.2. Project conditions and background.

a. Sector
Drainage & sewage and environmental sanitary are still a very pressing matter in the socioeconomic development in Vietnam causing a lot challenges for the Government and water sector.
The wastewater collection for treatment is not satisfied owning to the reasons that the discharge
system is used for both wastewater and rainwater. Regarding the institutional and financial terms,
Ho Chi Minh City Urban Environment Co., Ltd and Ho Chi Minh City Urban Drainage
Company Ltd are not as strong as Saigon Water Supply Company. This is one of the big challenges
about the capacity in settling the problems of the urban sanitary. The establishment of loss-profit
mechanism in service provision, which is based on the revenue, is very necessary and private
sectors can be employed to do some assigned work.
Based on the actual conditions, the investment and development of water supply and
drainage & sewage systems, especially the wastewater collection and treatment in accordance with
the regulations before discharging to the common sewer are still the requirements of the society. In
the condition, an orientation for development of water supply and drainage & sewage for urban
areas and industrial zones is very essential.
In 1999, the Decision No 35/1999/QD-TTg dated March 5, 1999 on National Orientation on
drainage development in urban areas by 2020 was signed by the Prime Minister. Regarding the
urban drainage & sewage, the Government was very concerned and decided that 20 urban areas
were invested with ODA funds and budget to rehabilitate and construct new drainage & sewage
and sanitary systems. In addition, policies and mechanisms for drainage & sewage are being
renovated, and many drainage companies are also reorganized and are no longer subject to the
subsidiary mechanism and switched from stated-own companies to the limited companies with
different business lines. Drainage & Sewage facilities are the public works and enterprises
operating in the sector shall follow the ordering mechanism with the relevant authorities in order to
be more active at work, especially in terms of finance.
The Law on Environment no. 52/2005/QH11 of the Socialist Republic of Vietnam passed
by the Nation Assembly and effective from 01st July 2006, as a replacement for the Law on
Environment in 1993 is very important. Then, the Government issued Decree no. 88/2007/ND-CP
dated 28 January 05 , 2007 of the Government on urban and industrial park water drainage. The
Decree no. 04/2007N-CP dated 08/1/2007 of the Government on Amending and supplementing a
number of articles of the Government's Decree No. 67/2003/N-CP was issued on 13th June 2093
by the Government on environmental protection charges for waste water.
Furthermore, on 20th November 2009 the Prime Minister has Decision no. 1930/Q-TTg
approving orientations for development of water drainage in Vietnamese urban centers and
industrial parks up to 2050
According to the orientation for development of water drainage in Vietnamese urban centers
and industrial parks up to 2025 and vision to 2050, the drainage & sewage is the public service,
which is encouraged by the Government for local and foreign organizations and individuals from
different economic sectors to participate in investment, construction and operation of drainage &
sewage system in accordance with the legal regulations of Vietnam on investment, construction and
operation of drainage & sewage systems. The drainage & sewage system should be constructed
synchronously in order to ensure the complete process from collection, transfer and treatment for
each area; the common drainage system shall be provided for the urban areas with sewers and
separate drainage system shall be provided for industrial zones, high tech zones, processing zones,
and new urban areas, small urban areas, which have not been provided with the drainage system;
Page 14
the scattered industrial factories and service facilities having toxic wastewater must have local
wastewater before discharge to the common drainage system; the key works must be invested
according to the investment phases with suitable technology; the involvement of private sectors for
the construction and operation of drainage system shall be implemented; the polluters must pay for
the treatment and discharge fee in order to maintain and operate the system as well as return for the
investment costs.
Regarding the drainage system, the rainwater discharge and flood reduction in the rainy
season in the urban areas of grade II are priotized issues for settlement in 2015; the service
coverage of the drainage system shall be increase from 50-60% to 70-80%. By 2025, the food shall
be eliminated fully in the urban area. Regarding the sewage system, the urban areas from grade IV
shall be provided with central domestic wastewater treatment system. The ratio of collected and
treated domestic wastewater shall be 70-80% and meet the regulations after treatment. The central
or dispersed treatment plants in the residential areas shall operate continuously and the wastewater
after treatment shall meet the regulations.
According to the vision to 2050, the urban areas from grade IV shall be constructed with a
completed drainage & sewage system, including rainfall discharge, wastewater collection and
treatment. The wastewater from small urban area (grade 5) and craft villages shall be collected and
treated at the central or dispersed wastewater treatment system. The flood must be solved
thoroughly and all wastewater must be treatment before discharging to the environment. The
proposed solution is to complete the legal system about drainage & sewage. The central cities must
prepare and approve the master plan of drainage & sewage systems, define the flow charts of the
systems, discharge basins and receiving bodies, define the investors and investment phases. ODA
funds shall be priotized for the investment and development of urban drainage & sewage system,
especially the large urban areas and urban area affected by the natural disasters. In addition, the
investment from local and foreign individuals and organizations shall be moiled for the investment
and construction of drainage & sewage system, especially for the wastewater treatment with
different types.
b. Regions (localities)
Strategic policies of HCMC.
The policy objectives and orientations of the city for socio-economic development are
represented very clearly with the policies for environmental improvement and social infrastructure
improvement in order to meet the economic development.
To promote industrialization, modernization, mobilize and exploit domestic resources,
attract and use effectively the external resources, improve the rate and quality of growth in each
sector, business, region or locality in order that the society and economy develop sustainably and
strongly.
To improve investment in the socio-economic infrastructure, improve quality, effectiveness
and capacity of economic integration, to create the improvement in science & technology,
education & training, employment opportunities, poverty reduction as well as living standard and
strengthen politic stability and national defense & security.
Improve public awareness about environmental protection, etc.
Orientations for HCMC development plan
Based on revision of the master planning of HCMC to 2025 approved in Decision no.
24/Q-TTg dated 06/01/2010 by the Prime Minister on the master construction planning of HCMC
to 2025, the city shall continue to play an important role in the region as the regional, national and
world-wide key economic zone. The construction and sustainable development shall be
Page 15
implemented according to the economic development in combination with preservation of

historical heritage, culture and environmental protection.
According to the master planning of HCMC to 2020, regarding the surface water
discharging system, it is necessary to arrange channel & sewer systems sufficiently to discharge
water in the catchment with the controlled hydrological conditions and arrange the regulating lakes
at the highland area. The wetlands should be kept as much as possible at the low land areas to
retain water. It is necessary to focus on the criteria of green trees and grass in accordance with the
regulations and reduce the surface flow, etc. Regarding the sewage system, JICA planning which is
approved by the Prime Minister under Decision no. 752/Q-TTg dated 19/6/2001 shall be
implemented gradually. The new urban areas in District shall be studied and constructed with a
collecting system and connection with the city interceptors.
c. Development planning.
According to the master drainage & sewage planning of HCMC to 2020 approved by the
Prime Minister under Decision no. 752/Q-TTg dated 19/06/2001;
District 2 is a new urban area along the eastern catchment of Sai Gon. At the short term,
common sewer shall be constructed. During the urban development, land shall be reserved for
construction of separate drainage & sewage system if possible.
According to the Project for Revision of HCMC Master planned, approved by the Prime
Minister under Decision no. 24/Q-TTg dated 6-01-2010:
- Regarding the existing city center, the common sewer will be used continuously (for
wastewater & rainwater). The dirty wastewater shall be separated from the common sewer by a
combined sewer overflow (CSO) and transferred to an interceptor for treatment at the wastewater
treatment plan of each catchment. The rainwater shall be discharged directly to channels.
Regarding the newly constructed area, it is necessary to construct a separate wastewater
collection system and then wastewater shall be transferred to the local wastewater treatment plant
or central wastewater treatment plant of the city.
The wastewater treatment must meet the requirement as set forth in the Master plan as
follows: BOD5 50 mg/L in the period to 2020 and BOD5 20 mg/L at period from 2020. Other
parameters about the wastewater quality after treatment must follow the Regulation (TCVN 72222002) and the temporary treatment station must follow the Standard QCVN 14:2008/ BTNMT.
In District 2, there is a central wastewater treatment plan below Phu My Bridge, adjacent to
Dong Nai River with area of 40 ha and treatment capacity of 480,000m3/day in the Phase 1 and
830.000 m3/day in the Phase 2 with the main transmission line from Binh Thanh District through
Sai Gon River and along Ca Tre Lon Channel, Sai Gon River through Road no. 9 to the central
wastewater treatment plant.
2.2.3. Market
1. Regarding the demand for flood control and drainage.
HCMC is one of the cities affected significant by the climate change. Over the years, there
are changes in rain condition in HCMC as the rainy season comes later and lasts longer with
greater intensity. According to statistical data of Southern meteorological station, there was only a
heavy rain with the precipitation of 100 mm in 3 hours from 1950 2006 in the city. However,
there have been from three to four raining times annually with the precipitation higher than 100
mm in 3 hours from 2006 up to now.
Page 16
Besides, changes in tidal level in Sai Gon in the recent years are very warning. According to
the hydrological monitoring of the Southern meteorological station, the water level at the highest
tide at Phu Van hydrographic station has been increasing in the recent years. According to the
monitoring data, the highest tide in Phu An Station on Sai Gon River is 1.55 m, higher than the
historical highest tide of 1.54 in 49 years ago. The highest tide was 1.56, 1.57 and 1.58 in 2009,
2010 and 2011, respectively. Now the highest tide is 1.61 in September 2012.
HCMC is located at the downstream of Dong Nai River and Van Co River, which is the
transition part from the hilly region of South East area. The terrain elevation varies from +30 m e
(northern region of Cu Chi, Thu Duc) to +0.5 m elevation (the South of District 7, Nha Be District,
Can Gio District, Ho Chi Minh City). The slope is lower from the North East North to the South
West West.
It is possible to divide the study area into 4 terrains:
- The hilly area is located mainly on the north of Cu Chi, North of Thu Duc, Hoc Mon,
Tan Binh, Go Vap. The topography of this area is complex, uneven. The ground elevation varies
from 2 m 33m. The highest locations are Long Binh Hill and Long Thanh My Hill (30m). Areas
in Hoc Mon, Binh Chanh, Tan Binh, Go Vap is gradually inclining and less even with the elevation
from 3.0 7.0 m.
- The wetland area is located on the West and South West of the city in the surrounding
area of Thay Cai An Ha Rach Tra Channel. The natural height is rather low 0.3 0.4m. The
area is also the cross section of different water flows.
- The lowland area is located on the south and southeast of Cu Chi, on the East of Hoc
Mon, on the South of Thu Duc, Nha Be, on the South of Binh Chanh, District 8 in Ho Chi Minh
City and Can Giuoc & Can Duoc in Long An Province. The terrain is relatively low and flat,
divided by interlacing network of rivers. The ground elevation varies from 0.3 1.0 m, and the
average is 0.5 0.8 m. Therefore, the area is governed by semi-diurnal regime of rivers and very
convenient for using the watercourse for irritation for improvement of land and environment
condition.
- Coastal area is the southernmost land and adjacent to the sea. The terrain is flat and the
average ground elevation is 0.7 0.8 m. However, the thick sand dunes along the beach has a
relative elevation from 1.5 to 2.5 m. The region is divided by interlacing channel, forming many
large and small islands. The impact of the tide here is very strong. The table below shows the
distribution of the land area in the study based on the elevation.
Table 3. The area divided based on the elevation at the downstream of Sai Gon Dong Nai
Right side of Sai Gon Left side of Sai Gon
Total
River
Nha Be River
Area (ha) Ratio (%) Area (ha) Ratio (%) Area (ha) Ratio (%)
No.
Elevation
17.5
285
0.13
1,843
2.23
2,128
0.71
15.0
2,636
1.21
2,143
2.59
4,779
1.59
12.5
6,184
2.84
2,469
2.98
8,653
2.88
10.0
13,026
5.98
2,849
3.44
15,857
5.28
8.0
22,414
10.28
3,304
3.99
25,718
8.55
5.0
31,863
14.62
3,893
4.71
35,756
11.89
2.0
60,957
27.97
4,839
5.85
65,796
21.88
Page 17
Right side of Sai Gon Left side of Sai Gon

Total
River
Nha Be River
Area (ha) Ratio (%) Area (ha) Ratio (%) Area (ha) Ratio (%)
No.
Elevation
< 2.0
157,015
72.03
77,889
94.15
234,904
78.12
Total
217,952
100
82,728
100
300,700
100
Risk of flood owning to sea level rise.

The terrain in HCMC is low with the elevation less than 2.0 m accounting for 72.03%. The
highest water level on the Saigon River at Phu An station is now measured at Phu An hydrological
station on the Saigon river in 2008 is 1.55 m which is higher than record tide peak of 1.54 m
existed 49 years earlier, in 2009 tide peak reached 1.56 m; in 2010 and 2011 tide peak reached 1.57
m and 1.58 m respectively; the current highest tide peak is 1.61 appeared in September 2012
During hydrographic measure for projects under the planning projects for flood control for
Ho Chi Minh City, it is showed that there is a small difference in nature between the water level
measured at the hydrographic station and one measured in accordance with the national elevation
system VN2000. This difference is about 23 cm (according to the Official Letter no.
497/DDBDVN-CNTD of Mapping & measuring Department of Vietnam, there is a settlement of
elevation marks of grade I in HCMC). Thus, the actual high tide (compared to terrain height) is
1.84 m. Thus if the sea level rises from 23 27 cm (B2 scenario) to the middle of Century 21th, the
entire area with terrain height less than 2.0 m accounting for 72.03% of the total area in City Ho
Chi Minh City will be submerged in water
From the above analysis, it is seen that HCMC is one of the metropolitan area having risks
of being flooded due to heavy rains and high tide, especially in the climate change condition and
seawater level rise. The construction of anti-flood and irrigation shall be necessary to meet the
socio-economic development of the city.
2. Demand for wastewater collection.
The natural area of District 2 in HCMC is 5017.96 ha, inclusive of 11 wards with 51
residential areas hamlets and 562 residential groups with the total population of 133,015 persons
in 2012. According to planning, the pollution of the District 2 will be 650,000 persons in 2020.
According to Decision no. 24/Q/TTg dated 06/01/2010 by the Prime Minister on the
HCMC master construction planning to 2025, wastewater criteria is in accordance with equivalent
water supply standards for each type; the penetrated amount into the sewers shall be 10% of the
daily flow on average. The total flow of wastewater is 3.15 3.2 million m3/day
Table 4. Water supply demand and of the city to 2025.
Water supply norm ( L/person/day)
No
.
Water demand
Existing city center
2010
2015
2025
2010
2015
2025
2010
2015
2025
Domestic use
180
200
200
180
200
200
180
180
200
Public works
36
40
40
18
30
30
20
20
25
Visitors
35
35
35
25
25
30
20
25
30
Craft villages &

industry
18
15
15
15
15
15
16
18
18
Page 18
Water supply norm ( L/person/day)

No
.
Water demand
Total
2010
2015
2025
2010
2015
2025
2010
2015
2025
269
290
290
238
270
275
236
243
273
Thus, District 2 is located in the new urban areas with the demand for water supply of 200 l
/person/day, the demand for domestic wastewater is 180 liters / person / day (10% due to nonrevenue water). Therefore, the total amount of domestic wastewater in District 2 is 23,944.5 m 3/day
now and 117,000 m3/day in 2025. If the wastewater is not collected and treated but discharged
directly to the environment to drainage systems, it shall be a risk for environmental pollution in
surrounding areas, especially the water environment, affecting the health of residents.
Basic for the project preparation.
Legal regulations of the Government.
Law on Construction no. 16/2003/QH passed by the National Assembly of the Socialist
Republic of Vietnam on 26/11/2003;
Decree no. 15/2013/N-CP dated 6/02/2013 by the Government on construction quality
management;
Decree no. 85/2009/N-CP dated 15/10/2009 by the Government guiding the Bidding Law
and the selection of construction contractors under the Construction Law.
Decree no. 112/2009/N-CP dated 14/12/2009 by the Government on management of work
construction investment expenses
Decree no. 67/2003/N-CP dated 13/6/2003 by the Government on environmental
protection charges for waste water and Decree no. 04/2007/N-CP dated 8/1/2007 amending and
supplementing a number of articles of the Government's Decree 67/2003/ND-CP.
Decision no. 1930/Q-TTg dated 20/11/2009 by the Prime Minster approving orientations
for development of water drainage in Vietnamese urban centers and industrial parks up to 2050
Decision no. 752/Q/TTg dated 19/6/2001 by the Prime Minster on the approval of the
HCMC master plan of the drainage & sewage system to 2020;
Decision no. 1547/Q/TTg dated 28/10/2008 by the Prime Minster on the approval of
irrigation planning for flood control in HCMC;
Decision no. 24/Q/TTg dated 06/01/2010 by the Prime Minster on the Master construction
planning of HCMC to 2025;
Circular no. 04/2010/TT-BXD dated 26/05/2010 by the Ministry of Construction guiding
formulation and management of costs of investment in work construction;
Official Letter no. 957/BXD-VP dated 29/09/2009 by the Ministry of Construction
announcing about the norms of project management costs and consultancy costs for investment and
construction.
Vietnam Building Code, Volume 1 and volume 3, promulgated in the Decision no. /BXDCSXD dated 14/12/1996 by the Ministry of Construction.
Official Letter no. 7654/TC-TCDN dated 22/06/2005 by the Ministry of Finance sent to the
Ministry of Planning and Investment (Department of Economic Affairs) about comments on the
project for drainage & sewage network expansion in Ho Chi Minh City and registration for loans
from the World Bank;
Page 19
Official Letter no. 7600/BKH-KTN by the Ministry of Planning & Investment dated 02/
11/2005 on the usage of WB loans for the project for drainage & sewage network expansion in Ho
Chi Minh City ;
Official Letter no. 6795/BTC-TCN dated 12/06/2013 by the Ministry of Finance about the
comments (second) on the adjustment of drainage & sewage in HCMC with the loan of WB;
Official Letter no. 5136/BKH-KTDN on 15/07/2013 by the Ministry of Planning and
Investment about comments on the adjustment in terms of project scale and investment of the
Project for drainage & sewage network expansion in Ho Chi Minh City and connection with
households in District 2, HCMC financed by WB ;
Decision no. 33/2007/QD-UBND dated 05/09/2007 by Peoples Committee of HCMC on
authorization for management of project investment and construction;
Legal documents of Peoples Committee of HCMC:
Decision no. 33/2007/Q-UBND dated 05/09/2007 by Peoples Committee on the
authorization for management of construction project;
Statistical Yearbook of Ho Chi Minh City in 2012;
Standards & Regulations:
Standard TCXDVN 33:2006 - Water Supply - Distribution System and Facilities;
Standard TCXDVN 7957:2008 Drainage and sewerage - External Networks and
Facilities;
Regulation QCVN 14/2008/BTNMT: National technical regulation on domestic
wastewater;
Regulation
Wastewater;
QCVN
24/2009/BTNMT: National
Technical Regulation on
Industrial
TCVN 7222/2002: General environmental requirements for central domestic wastewater

treatment plants;
Other data and information:
Project for Modification of Master Construction Plan of HCMC to 2025;
Documents and Resolutions of IXth Party Congress of District 2 in the term of 2010 - 2015
provided by the People's Committee of District 2 in 2010;
The socio-economic development plan of the District 2 in 2010 by the Institute of
Economics of Ho Chi Minh City (now Ho Chi Minh City Institute for Development Studies);
The land use planning of District 2 to 2010 and orientations towards 2020 and the 5-year
land use plan (2006-2010);
The sector planning approved by the Prime Minister, such as power supply, water supply,
drainage & sewage and transportation;
The sector planning approved by Peoples Committee of HCMC such as culture &
information, sports, education and training, green parks, supermarkets, commercial centers, and
health care, etc.
HCMC Environmental management strategy in 2010 by the Department of Natural
Resources and Environment;
The Socio-economic report of District 2 over the years and the socio-economic
development plan in 2010;
Page 20
The detailed master plans (zoning) with the scale of 1/2000 and construction project 1/500
in District 2 which has been studies, adjusted and approved;
Statistical Yearbooks of the Department of Statistics and Ho Chi Minh City and Statistical
Office of District 2 in recent years;
The documentation and data status by the People's Committee and the sectors &
departments of District 2 provided additional research during the project;
The existing Documents and data prepared and revised by Peoples Committee and
departments of District 2 during the project study.
Maps:
The zoning maps of general adjustment of Master Plan 2025 by the City Planning Institute
in collaboration with the City Building Consultants Nikken Sekkei (Japan) implementation.
The master planning maps of District 2, approved in accordance with Decision no.
6707/Q-UBND dated 29/12/2012 by the Peoples Committee of Hochiminh City.
The existing terrain maps made with digital technology by Cadastral and Construction
Surveying Company (Ministry of Natural Resources and Environment) made in June 2004 with the
VN2000 national coordinate system and provided by HCMC Department of Natural Resources and
Environment)
The Urban detailed planning map (zoning) with the scale of 1/2000, which was approved
and provided by Department of Planning & Architecture & Urban Management Division, up to
May 2013.
The Projects for development and infrastructure construction (especially transport) which
have been implemented in District 2.
2.3. Project objectives
2.3.1. General objectives of the project
- Improving environmental condition in HCMC through the construction of drainage &
sewage works, sanitary and wastewater treatment works.
- Increase the durability of urban infrastructure and services in HCMC.
- Reduce environmental pollution for urban area.
- Increase the durability of the urban infrastructure and service in HCMC.
- Reduce environmental pollution for the urban area.
- Minimize the epidemics caused by the stagnant and untreated water. The rainwater and
wastewater in most residential areas of the city will be discharged properly to eliminate negative
impacts on the people's health and activities of the city caused by water discharge.
- Improve awareness about the creation and preservation of a salubrious environment.
Strengthen capacity of management operational regarding drainage & sewage system of Ho Chi
Minh City Urban Drainage Company Ltd.
- Create a favorable condition to attract more investors and people to live in new urban
areas as well as attract investors in terms of production and business to invest in industrial zones &
tourism areas.
2.3.2. Specific objectives of the project
Construct the drainage & sewage system in District 2, Hochiminh City in order to meet
socio-economic development planning of the city in the period of 2013 2020, including:
Page 21
Construct rainwater and wastewater collection systems in District 2, HCMC to reduce

the flood condition in heavy rains.
Install gates at the outlets of the drainage system in order to reduce the flood condition
in case of high tide and increase capacity of rainwater reserve in the pipeline system.
Construct domestic wastewater system at the secondary and third grade from
households and public works to connect with the common wastewater collection
pipeline of the city and transfer to the wastewater treatment plant in order to reduce
water pollution source and improve health of the community as well as contribute to the
living condition of the people.
Support to construct domestic wastewater system and septic tank for households having
low income in District 2 to connect with the wastewater collection network with grade
3.
2.4. Adaptability and orientation of the drainage & sewage planning for urban areas and
industrial zones in Vietnam.
2.4.1. Orientation for the drainage & sewage development in urban areas and industrial zones in
Vietnam.
In the year of 1998, the national program for the fresh water, sanitary of Vietnam was
carried out, and it has a very clear and effective results. The number of residents accessing to fresh
water and sanitary condition have been improved significantly.
Decision no. 1930/Q-TTg dated 20/11/2009 by the Prime Minster approving orientations
for development of water drainage in Vietnamese urban centers and industrial parks up to 2025 and
vision to 2050 with the following contents:
- The drainage & sewage is the public service, which is encouraged by the Government for
local and foreign organizations and individuals from different economic sectors to participate in
investment.
- The drainage & sewage system should be constructed synchronously in order to ensure the
complete process from collection, transfer and treatment for each basin; the construction of the
drainage & sewage systems is the prioritized for the big urban areas (especially the grade I and II),
or the tourism centers or urban areas having significant effects on environment.
- The scattered industrial factories and service facilities having toxic wastewater must have
local wastewater before discharge to the common drainage system.
- The key works must be invested according to the investment phases with suitable
technology and capacity, the newly constructed and rehabilitated sewers must meet the capacity of
the rainwater and wastewater discharge in accordance with the estimated drainage & sewage
planning in the long term.
- The wastewater treatment technology is selected in accordance with the natural condition,
scale, urban features and economic condition. It is advised and encouraged to apply the technology
and equipment, which are studied and produced domestically.
- Local and foreign private resources for the construction and operation of drainage &
sewage system shall be mobilized
2.4.2. The master plan of urban drainage & sewage system of HCMC made by JICA.
In 1999, Japan International Cooperation Agency (JICA) in the close cooperation with the
relevant agencies to study and prepare a master plan for urban drainage & sewerage, including
Page 22
flood control and drainage & sewage of Ho Chi Minh city. The master plan has been approved by
the Prime Minister in the Decision dated 19.06.2001 752/QD-TTg, hereinafter referred to the JICA
planning.
The objectives are set forth in the study:
- Develop master plan towards 2020 for improvement of urban drainage and sewage
systems in Ho Chi Minh City and identification of priority projects.
- Conduct a feasible study, which is a priority in the master plan.
- Perform technology transfer for personnel of the Government during the study.
The master plan is prepared for the development in 20 years in order to meet the population
increase and socio-economic condition as estimated in 2020. A package of integrated measures for
the urban drainage & sewage system, in which the drainage & sewage system and existing facilities
are utilized in order to minimize the investment costs, is proposed.
Figure 3. Zoning area of wastewater discharge basin in accordance with JICA Planning
The Study is done in HCMC Central area with the total area 140 km2 of the current urban
areas and 510 km2 of the surround areas. According the study, the construction of Dau Tieng works,
Tri An works, Thac Mo Works and reservoirs at Sai Gon and Dong Nai river basin shall enhance
the safety for the downstream of the two rivers in 20 years until the flood re-occurs. Therefore, a
continuous dyke along the two rivers to control flood is not necessary, except for the reclamation to
protect a limited urban area.
Regarding the drainage & sewage in urban areas, the studied area is divided into 6 drainage
areas (North, North East, South East, Central, West, South) based on the condition of terrains, land
Page 23
usage, urbanization, urban drainage system and flood, etc. The measures proposed in the master
plan are:
-
Channel improvement
Reduce the speed of natural basin establishment
Drainage Pump System
Water retention ponds
Drainage Pipe / Channel Development
The channels in the study area with the river basins smaller than 30 km2 were proposed to
improve to respond to the flood during last 5 years and ones with the catchment more than 30 km2
shall be improved to respond to the flood in 10 years. The three areas which are applied with the
measures to reduce the speed of natural basin establishment (North area and one area in West area)
shall be used as the low-lying paddy fields to adjust the flood flow and reduce the magnitude of
channel improvements. In isolated lying areas on boundary with of the metropolitan area C, three
water-pumping systems have been proposed. For new developments in higher areas like Hoc Mon
in the north and Thu Duc and northeast areas (District 2 and District 9), the study also proposed a
compulsory regulation on construction of water retention ponds in the developed area. The master
plan also includes rehabilitation of the existing combined sewers within the city and usage of a
separate drainage system in the newly developed areas.
In order to develop the drainage & sewage system, the study area is divided into 9 sub-areas
in the master plan. The drainage & sewage system has been developed for 189.78 km2 (30% of the
study area) serving 5.77 million of people (78%) in 2020. In the remaining area, the treatment
system shall be arranged for every private house or construction works, including a septic tank
and anaerobic filter.
The JICA planning has been considered a key project in terms of water environmental
sanitary (phase 1: Nhieu Loc Thi Nghe basin), Doi Channel Te Channel, Hang Bang Channel,
Tan Hoa Lo Gom, Tham Luong Ben Cat.
The scope of the environmental sanitary project phase 2 includes interceptors and a
wastewater treatment plant for Nhieu Loc Thi Nghe Basin in combination with District 2, and
sewers in order to control flood and reduce pollution for 02 basins as provided in the JICA
planning.
2.4.3 Conformability with the flood control of HCMC
According to the Decision no. 1547/QD/TTg dated 28/10/2008 by the Prime Minister
approving the HCMC flood control master plan, the natural area in HCMC is 209,500 ha and
adjacent areas, including 3 water control regions, including:
- Region I: Includes the entire area on the right bank of Sai Gon Nha Be River, including
the existing central area, in which there are many pressing problems about irrigation and
environment in the urban areas, South area of the city and a part of Long An Province (the left bank
of Van Co River and Vam Co Dong River), mainly the agricultural land and fallow land as the
key area of the planning.
- Region II includes the entire area of cross section of Dong Nai Sai Gon River, which is
the developing area. The drainage could be more favorable as it is possible to arrange anti-flood
and irrigation works.
- Region III include the entire area on the left bank of Nha Be Soai Rap river - the open
biosphere where the water control facilities are possible to be built with large scales in the future,
Page 24
depending on the situation of rising sea levels and changes in urban development in the south of the
city.
Figure 4: Mapping planning about flood control in HCMC

The district 2 is in the region II of the HCMC flood control planning a new urban area in
which there are three sub-areas:
- Upland area (Giong Ong To Hill): no grading.
- Urban areas: mainly stretching along the south of Rach Chiec Channel, including Thao
Dien, An Phu, An Khanh, Thu Thiem New Urban Area, Thanh My Loi area and Cat Lai port area:
building elevation higher than 2.50 m.
- Located in the dyke area is the remaining area on the South with the building elevation
higher than 2.00 m
2.4.4. Conformability with the master construction planning of HCMC
Summary about the Decision no. 24/Q-TTg dated 06/01/2010 by the Prime Minister on the
master construction planning of HCMC to 2025
Page 25
The scope of the planning: The entire area is 2,095 km2, including 19 districts and 5 subdistricts.
The feature of the planning: It is a special metropolitan area a key major center of
economy, cultural, education & training, science and technology, having an important political role.
The planning objectives: the city shall be developed sustainably in combination between
economic development and conservation of historical and cultural heritage and environmental
protection, national security and defense.
Regarding population scale: It is estimated that there will be 10 million residents in the
city in the future, in which (70 74) percentage of the residents are living in the urban areas.
Regarding the infrastructure development: The planning is about the synchronous
infrastructure development such as roads, drainage & sewage system, electrical system,
information, clean water supply, etc.
Regarding the drainage planning
- Rehabilitate the drainage system in the existing central area, which is the common sewers
for rainwater and wastewater and build the separate drainage & sewage system for the new areas.
- Regarding the existing urban area including 3 new districts, i.e. District 7, District 12
District and Binh Tan District and 4 sub-districts, i.e. Cu Chi, Hoc Mon, Binh Chanh and Nha Be
district on the right bank of Sai Gon Nha Be river, the drainage system shall be completed and
the sewage system shall be separated with the common sewers, dredging and expanding channels
in combination with other measures (temporary construction, increase of road surface level,
installation of one-way gates, tidal pumping stations, etc.) shall be used to eliminate flooding
situation.
- Regarding 3 new districts, i.e. District 2, District 9 and Thu Duc District on the right bank
of Sai Gon Nha Be River, the drainage & sewage system shall be separated with the channel and
sewers which are sufficient to discharge water in the catchment with the controlled hydrological
conditions and arrange the regulating lakes at the highland area. The wetlands should be kept as
much as possible at the low land areas to retain water. It is necessary to focus on the criteria of
green trees, grass in accordance with the regulations, and reduce the surface flow, etc.
- Regarding Can Gio District on the left of Nha Be Soai Rap River: the entire channel
system shall be kept and green tree area shall be developed more in order to increase the regulating
capacity. It is not necessary to construct big discharging works (only arranging the sewers for small
residential areas)
- Ensure corridor for the protection boundary of rivers and channels in accordance with the
regulations on the waterway management.
Regarding wastewater management.
- The wastewater criteria are in accordance with equivalent water supply standards for each
type; the penetrated amount into the sewers shall be 10% of the daily flow on average. The total
flow of wastewater is 3.15 3.2 million m3/day, in which the industrial wastewater shall be 0.32
035 million m3/day.
- The existing common sewers for the city center in combination with combined sewer
overflow (CSO) and interceptors to separate and collect wastewater) are used and the separate
drainage & sewage system shall be used for the new urban area; the area located in the basin is the
inner city and new urban areas with highly density of population ( 200 persons/ha). The remaining
areas with low population density (<200 people / ha) will be developed with wastewater collection
Page 26
& treatment systems in the small residential areas. The domestic wastewater after treatment should
meet the regulations; the wastewater from craft villages and households in the residential areas
must meet the standards of type C in accordance with the regulations before discharging to the
sewer system for treatment with the domestic wastewater. The industrial wastewater is not allowed
to transfer to the domestic wastewater treatment plant but treated separately at each industrial zone
and meet the standard of Type A according to the regulations before discharging to channels and
sewers.
- Zoning wastewater: the areas with high population density include the exiting central area,
the expanded central area and new urban areas shall be divided into 12 wastewater basins. In
details, there are four basins in the existing central area, there are 08 basins in the expanded central
area and suburb areas. The wastewater from the areas beyond the basins as stated above shall be
collected and treated at each area with a small scale. The main discharging basins of the city
include:
- The construction is being done for the following basins, i.e. Tay Hu Ben Nghe Doi Te
(THBNT) basin and Nhieu Loc Thi Nghe (NLTN) basin.
THBNT Basin: Now, the sewage system of the basin (including interceptors, transmission
pipe, and wastewater pump station and wastewater treatment plant) is being construction in the
phase 1. The treatment plant with the capacity of 141,000 m 3/day in the Phase 1 was constructed on
27/11/2004 and inaugurated on 26/12/2008. The plant shall have the capacity of 469, 000m3/day in
the Phase 2 and of 512,000 m3/day in the completion phase. The location of the wastewater
treatment plant and the wastewater pumping station was defined and fixed. Therefore, it is
necessary to define the water drainage boundary in accordance with the new density of the
population and new criteria in accordance with the scale of the treatment plant.
NLTN Basin: The interceptor 3000 along Nhieu Loc Thi Nghe Channel and wastewater
pumping station located next to the Thi Nghe Channel and Van Thanh Channel with the capacity of
64,000 m3/ h. The location of the wastewater treatment plant as regulation in the Decision no. 752
has been moved to Thanh My Loi Ward, District 2.
The feasible studies have been done for the following basins, i.e. Tan Hoa Lo Gom
(THLG) and Tham Luong Ben Cat (TLBC) basins.
Tan Hoa Lo Gom Basin: the feasible study was completed. In comparison with Decision
752, the location of the plant is changed from location next to Ba Goc Channel in Tan Kien Ward,
Binh Chanh District to Tan Nhat Ward, Binh Chanh District. The land for the new location was
decided to be 73 ha. The boundary of the basin is adjusted; a part of Binh Chanh District is located
in the basin.
TLBC Basin: The boundary of the basin has been modified and wastewater from a part of
District 12 shall be collected. Therefore the scale of the treatment plant shall be changed
accordingly.
The feasibility studies have not been done for basins in the new district such as District 2,
District 7, District 9, District 12 and Thu Duct District. In comparison with Decision 752/Q-TTg,
there is a change in only Sai Gon East Basin (SE) basin in District 2. The location of the treatment
plant is moved from Ca Tre Lon Channel to the location adjacent to Cat Lai Industrial Zone. The
former location shall be used to construct the wastewater pumping station. The boundaries of other
basins and scale of the treatment plant shall be adjusted according to the new land use planning.
The new basins for wastewater discharges are as follows:
Page 27
+ The new wastewater discharge basins will be set for areas which are located in local
treatment areas previously, but expected to be developed into new urban area. There are total three
new basins, such as Binh Tan basins, Cau Dua Channel, Northwest are of the City.
Therefore, there are total 12 wastewater discharge basins. Each basin shall cover a part or
entry districts and there is a sewage system in each basin. The following table presents about the
wastewater discharge basins:
Table 5. Wastewater discharge basins in HCMC to 2025
No
.
Wastewater discharge
basin
Districts in the basin
Wastewater discharge basins according to JICA planning

1 Basin 1 (THBNDT)
District 1, 3, 4, 5, 6, 8, 10,
11, Tan Binh District, Binh
Chanh District
2 Basin 2 (Sai Gon West)
District 12, Tan Phu District,
Tan Binh District, Go Vap
District, Binh Tan District
3 Basin 3 (THLG)
District 6, 8, 11, Tan Binh,
Tan Phu, Binh Tan, Binh
Chanh
4 Basin 4 (Sai Gon South) District 7 and Nha Be
District
5 Basin 5 (Sai Gon East)
District 2, Thu Thiem
6 Basin 6 (Sai Gon North District 9
II)
7 Basin 7 (Sai Gon North Thu uc
I)
8 Basin 8 (TLBC)
District 12, Binh Thanh
District, Go Vap District
9 Basin 9 (NLTN)
1, 3, 7, 10, Binh Thanh
District, Go Vap District,
Phu Nhuan District & Tan
Binh District
New wastewater discharge basin
10 Basin 10 (Binh Tan)
Binh Tan District
11 Basin 11 (Cau Dua District 12 & Hoc Mon
Channel)
District
12
Cu Chi and Hoc Mon
Basin 12 (North West)
District
Collection
systems
Wastewater
flow for
treatment
(m3/day)
Common
&
separate sewers
512,000
Common
&
separate sewers
180,000
Common
&
separate sewers
300,000
separate sewers
200,000
separate sewers
separate sewers
350,000
130,000
separate sewers
170,000
Common
&
separate sewers
Common
sewers
250,000
separate sewers
110,000
separate sewers
100,000
separate sewers
130,000
500,000
The key works: Construction and completion for 12 central wastewater treatment plants for
Tau Hu Ben Nghe Doi Te Channel shall be done to increase the capacity to 512,000 m 3/day in
2025, Sai Gon West basin with capacity of 120.000 m3/day, Tan Hoa Lo Gom with capacity of
300.000 m3/day, Sai Gon North Basin I with the capacity of 170.000 m 3/day, Sai Gon North Basin
II with the capacity of 130.000 m3/day, Tham Luong Ben Cat Basin with the capacity of 250,000
m3/day), Nhieu Loc Thi Nghe with the capacity of 500,000 m3/day), Binh Tan basin with the
Page 28
capacity of 180.000 m3/day), Cau Dua Basin with the capacity of 100.000 m3/day) and North
West Basin with the capacity of 130,000 m3/day).
2.4.5. Conformability with the master construction planning of District 2 to 2020
The development orientation for sewage system in District 2 is in accordance with the
Project for Revised Master Construction Planning of District 2 approved by Peoples Committee of
Hochiminh City under Decision no. 6707/Q-UBND dated 29/12/2012:
Construction ground level: The construction level is H 2,00 m, but the construction level
of Thu Thiem New Urban Area is 2,50m.
Drainage & anti-flood planning:
Utilize and rehabilitate the existing channel systems for the discharge system grade 1 and
utilize cannels and sewers to reduce the investment costs. The rainfall in District 2 flows by gravity,
mainly to the channels & rivers in the most favorable condition. Based on the natural condition, the
existing drainage & sewage systems, land-use planning in periods in combination with sewers with
grade 1; 2 and 3, it is necessary to check the discharge capacity and select one of the following
solutions:
- Keep the existing drainage system.
- Construct the additional drainage system if the actual condition is possible.
- Construct and replace the existing drainage system.
- Develop completely new drainage system for new roads or roads which are not provided
with drainage & sewage systems.
Sewage system Planning
The sewage systems include wastewater collection system and wastewater treatment plants.
The production wastewater: the industrial wastewater is collected to a separated collection
system and conveyed to local treatment plants in industrial zones.
The industrial wastewater must be treated in accordance with Standard QCVN
40:2011/BTNMT before discharging to the environment.
The wastewater in the residential areas: the main interceptor system shall convey
wastewater from the pumping station to the central wastewater treatment plant of the city. The
alignment of the interceptor is fixed and the interceptor shall not receive the wastewater from the
works but only receive the wastewater from the main wastewater collection sewer at an accepted
point.
The main wastewater collection sewer whose alignment is fixed is constructed on the main
planned roads and capable of collecting wastewater from the concentrated points of the residential
areas and conveying to the transmission pipeline.
The branch sewer is the separated wastewater sewer (it means that the urban area shall be
developed with the two separated discharging systems, i.e. drainage & sewage system). The sewer
shall collect the wastewater from the works to the wastewater collection points.
The Development orientation of the sewage system for Sai Gon East Basin (District 2
Basin)
The SE basin will cover District 2. The basin will also cover Thu Thiem New Urban area,
adjacent to Sai Gon River on the West and on the South, adjacent to Phu Huu Industrial Zone and
Cat Lai Industrial Zone on the East. It is estimated that the population of the area will be 650,000
Page 29
persons with the flow of around 220,000m3/day and flow from Thu Thiem Area of 130,000m3/day
in 2025.
Using a separate sewer to collect wastewater for SE basin. The main sewer shall be
arranged along Tran Nao Street and Sai Gon River. The diameter of the sewer is 600 from
1500mm.
The location for construction of the wastewater treatment plant in Sai Gon East basin is
expected to be the area adjacent to Cat Lai Industrial Zone with the capacity of 350,000 m3/day.
The required area for the plant including wastewater treatment facilities, sludge treatment facilities
and other auxiliary works is around 35 ha.
2.5. The relation with other related projects.
In 2012, the HCMC Environmental Sanitation Project (in the period of 2002 2012) was
completed and has been put into operation. Up to now, the works under the Project has been
contributing to the improvement of environmental condition in HCMC significantly as well as
brought a lot of benefits for residential in the project area. This has been also the biggest project in
terms of drainage & sewage and environmental sanitary in HCMC.
Now the HCMC Environmental Sanitation Project Phase II is being implemented.
Besides the investment in construction of discharge system with grade 2 and 3 to collect rainwater,
the wastewater is also a key component for the projects as follows:
a. The Central wastewater treatment plant of the city:
According to the master drainage & sewage plan of the city, including the District 2, a
wastewater treatment plant of the city shall be constructed at location of Phu My Bridge, adjacent
to Dong Nai River.
Phase 1 (in 2020):
Wastewater treatment capacity: Q1= 480,000 m3 /day
Organics treatment capacity:
620,000 (pollution load)
Phase 2 (in 2045):

Wastewater treatment capacity: Q1= 830,000 m3 /day
Organics treatment capacity:
1,530,000 (pollution load)
b. Transmission pipeline:
The transmission pipeline running along Nhieu Loc Thi Nghe Channel shall collect
wastewater from Nhieu Loc Thi Nghe Basin to the pumping station in Ward 22, Binh Thanh
District, located at the abutment of Van Thanh Bride and the wastewater shall be pumped through
the Sai Gon River to the beginning point of District 2 (Bo Dong Well), Well no. 1 on the west of
Thu Thiem 1 Bridge adjacent to Cau Ong Cay Channel and Sai Gon River. From the Well no. 1, the
transmission pipeline having diameter of D3200mm shall run along Ca Tre Lon Channel to the
Station no. 10. Before running though Giong Ong To River, the pipeline has a depth of 20 m. After
the Well no. 10, the pipeline runs along road on the side of Sai Gon River Street no. 9 to the
central wastewater treatment plant at the abutment of Phu My Bridge (District 2), adjacent to Dong
Nai River, Well no. 20. The transmission pipeline has 19 wells which are possible for receiving
wastewater from main sewers of the city.
Besides the project, there are some rehabilitation and construction project in HCMC and in
District 2 for some rainfall discharge sewers which are invested by the Steering Center of the urban
flood control Program and Peoples Committee of District 2, i.e. Project for rainfall discharge
Page 30
sewer construction in Nguyen Duy Trinh Street, Nguyen Thi Dinh Street, Tran Nao Street and
Luong Dinh Cua Street, etc. with the investment of the budget funds. These projects are
contributing significantly to the improvement of environmental condition and sanitary in HCMC.
2.6. Necessity for investment
In District 2, the wastewater treatment systems are not available and technical infrastructure
about drainage & sewage is not sufficient with high speed of urbanization. The HCMC
Environmental Sanitary Project (Nhieu Loc Thi Nghe Basin) in the Phase I with the ODA fund of
the World Bank was completed at the end of 2012. Under the project, the interceptor system
collecting domestic wastewater in Nhieu Loc Thi Nghe Basin. The Phase II, the project shall
continue construction of the interceptor system to connect with District 2 and construct a
wastewater treatment plant in Thanh My Loi Ward District 2. At the meeting about the regular
checking of project implementation status of the HCMC Environmental Sanitary Project in the
Phase 1 between the Peoples Committee of HCMC and WB, it is agreed to supplement the
Component of Construction of drainage & sewage with grade 2 and 3 for District 2 to connect
with the interceptor system in order that the wastewater on the District 2 shall be conveyed to
Nhieu Loc Thi Nghe Wastewater Treatment Plant for treatment and the effectiveness and service
coverage of the plant shall be promoted. In addition, the living condition and eco-environment of
the area and economic development of District 2 in particular and of the city in general shall be
improved.
The project has solved the situation rainwater and wastewater in the key areas of Ho Chi
Minh City. However, the areas outside the project include the North East of HCMC and smaller
areas have no drainage and sewerage system. In these stated area, there are only few sewers in
some main streets. The drainage system here is only the channel systems and common sewers for
both rainwater and wastewater. However, the construction is not synchronous and the drainage is
not effective. Environmental pollution caused by wastewater is a pressing problem for residential
areas. According to the survey results, flood often occurs in different areas in the city. The drainage
system in the city is very few but degraded or heavily damaged or clogged as some sections are
filled with waste, some sections are partly eroded and damaged. In case of heavy rains, the
channels and sewers are often overloaded and results in flood situation. Therefore, the living
condition and environment of the people living in the drainage ditches are often overloaded,
flooding the road and causing flooding and environmental living conditions of people in low-lying
areas very difficult.
In order to complete the HCMC Environmental Sanitary Project Phase 2 and promote the
effectiveness of the scale & capacity of the exiting project in order to meet the demand for drainage
& sewage of the city in short term & long term as well as create a scenery space, it is very
necessary to invest in Drainage & Sewage system of HCMC.
Page 31
CHAPTER III. PROJECT DISCRIPTION: DESIGN, RESORUCES AND RESULTS

3.1. Project scale
3.1.1. Project grade and designed frequency
The grade of the works: the project is designed to design the rainwater discharge and
wastewater collection system to connect to the common wastewater collection system of the city,
therefore, the grade of the works is based on the following standards:
+ Current wastewater flow is 23.944,5 m/day
+ Estimated current water flow in 2025 is 117.000 m3/day
+ Discharging area for the entire project is 5017.96 ha.
Pursuant to Circular No. 33 / 2009/TT-BXD Circular No. 33/2009/TT-BXD of September
30, 2009, promulgating the national technical regulation on classification, grading of civil and
industrial buildings and urban infrastructures, Table C.1, Item C1.2.2, the works shall be ranked as
grade II as the pipe diameter (mm) or equivalent section of 1200 <2000mm.
Regarding the project area, if the frequency higher than the calculated rainfall intensity
(rain in 180 minutes), P = 10 (according to TCVN 7957:2008 - Drainage and sewerage - External
Networks and Facilities - Design Standard)
According to the Decision 853/Q-BNN-KHCN dated 06/4/ of the Ministry of
Agriculture and Rural Development, promulgating technical standards in calculation of hydrologic,
hydraulic for anti-flood irrigation projects in Ho Chi Minh city with the calculated frequency of
rain P = 10% and rain time of 180 minutes.
Frequency of tide level (calculating the tidal margin on the Saigon River - Dong Nai) in District 2
area, P = 10% (in accordance with QCVN 04-05/2010/BNNPTNT National technical regulation on
hydraulic structures The basic stipulation for design.
3.1.2. Proposed project scale
Based on the hydraulic calculation, pipes are selected for the works as follows:
Table 6. Statistic table of items in the rainwater collection system
No.
I
Area
System
Items
Construction
Thao Dien
Unit
Quantity
Pipeline
- Pipeline 1500
3.570
- Pipeline 1200
3.770
- Pipeline 1000
Outlet
- Outlet 1500
540
pcs
- Outlet 1200
pcs
- Outlet 1000
Manhole
pcs
pcs
85
pcs
88

pcs
14
pcs
187
Page 32
No.
Area
System
Outlet
Construction
Soth of Thao Dien
II
Outlet
III
Items
Construction
Unit
Quantity
Outlet
- Outlet 1000
pcs
- Outlet 800
pcs
10
- Outlet 600
pcs
13
- Outlet 400
Pipeline
- Pipeline 1500
pcs
1.493
- Pipeline 1200
2.406
- Pipeline 1000
886
- Pipeline 800
Outlet
- Outlet 1500
1.119
pcs
- Outlet 1000
pcs
- Outlet 800
Manhole
pcs
pcs
38
pcs
58
pcs
24

Outlet
- Outlet 800
pcs
28
pcs
148
pcs
- Outlet 600
pcs
- Outlet 400
Pipeline
- Pipeline 2000
pcs
pcs
m
m
m
2
701
1.610
- Pipeline 1500
2.612
- Pipeline 1200
431
- Pipeline 1000
4.768
- Pipeline 800
5.141
- Pipeline 600
858
- Pipeline 500
Outlet
- Outlet 2000
484
pcs
pcs
1
2
- Outlet 1500
pcs
- Outlet 1200
pcs
- Outlet 1000
pcs
Page 33
No.
Area
System
Items
Unit
Quantity
pcs
15
pcs
36
pcs
58
pcs
12
pcs
107
pcs
118
pcs
21

Outlet
- Outlet 1500
pcs
13
pcs
380
pcs
pcs
pcs
1
1
1
- Outlet 1200
pcs
- Outlet 1000
pcs
- Outlet 800
pcs
- Outlet 600
pcs
- Outlet 400
pcs
Manhole
(2000x2000)
Outlet
Wastewater collection system with grade 2 and 3.

Table 7. Statistic table of items in the wastewater collection system
No.
Area
Network
Items
Pipeline
- Pipeline 500
Thao Dien
- Pipeline 400
facilities
Manhole
- Manhole 500
Nam Thao
Dien
- Manhole 400
Pipeline
- Pipeline 300
Facilities
Manhole
- Manhole 300
Pipeline
- Pipeline 1000
Grade 2
Grade 3
II
Grade 2
Unit
Quantity
7.663
2.836
m
point
207
18
pcs
143
pcs
56
29.882
point
176
pcs
872
2.199
Page 34
No.
Area
Network
Items
Unit
m
Quantity
1.241
m
point
62
6
pcs
44
pcs
26
12.413
point
23
pcs
436
1.623
- Pipeline 1000
1.340
- Pipeline 600
3.190
- Pipeline 500
facilities
Manhole
- Manhole 1200
1.946
m
point
80
30
pcs
34
- Manhole 1000
pcs
26
- Manhole 600
pcs
66
- Manhole 500
Pipeline
- Pipeline 300
facilities
Manhole
- Manhole 300
Pipeline
- Pipeline 1500
pcs
42
41.165
point
102
pcs
1.196
1.679
- Pipeline 1200
3.528
- Pipeline 800
607
- Pipeline 600
1.201
- Pipeline 500
5.985
- Pipeline 400
Manhole
3.740
840
- Pipeline 800
facilities
Manhole
- Manhole 1000
Grade 3
Grade 2
III
Binh Trung
Dong - Binh
Trung Tay Cat lai
Grade 3
IV
Other areas
Grade 2
- Manhole 800
Pipeline
- Pipeline 300
facilities
Manhole
- Manhole 300
Pipeline
- Pipeline 1200
Page 35
No.
Area
Network
Items
- Manhole 1500
Unit
pcs
Quantity
41
- Manhole 1200
pcs
84
- Manhole 800
pcs
16
- Manhole 600
pcs
30
- Manhole 500
pcs
142
- Manhole 400
pcs
89
station
3.2. 3.2. Natural condition and socio-economic conditions of the project area
3.2.1. Geological condition
Hochiminh City is the biggest city as well as a key economic, cultural, scientific, technical
& political center in the country with 19 urban districts and 5 sub-districts with total natural area of
around 2095.01 km2. HCMC always has had a very important role in the Vietnam economy.
District 2 is one of the districts located in the North East of Hochiminh City and adjacent:
To Thu Duc District on the north.
To Sai Gon River on the South separating the district with District 7, to Nha Be River
separating with Nhon Trach District, Dong Nai Province.
To Sai Gon River on the East separating with Binh Thanh District, District 1 and District 4
in order from the North to the South.
To District 9 on the East.
3.2.2. Features of Topography
District 2 is located in the area with low and complicated terrain of Ho Chi Minh City
featured with diversified network of channels, descending incline of the ground surface from North
to South; average height over sea level from 0.5 m to 1.1 m, only Binh Trung and Cat Lai mounds
have separate height from 2m to 5m. Areas of less than 1 meter high often suffer from flood and
water drainage capacity depends on the tidal regime.
In the mound areas with high terrain, soil is largely ancient alluvial soil having main
components of sandy soil, sandy clay, grit and gravel at solid to hard state with bearing capacity
from 1kg/cm2 to 5kg/cm2 including Giong Ong To mound with an area of about 310 hectares,
located in the center of District 2. Ground elevation is from +6.73 to +2.0 m Slope direction:
mainly from center to surrounding. Average slope of ground surface is 1.25%, local slope is up to
4.5% and 15%.
For areas with low terrain, soil is largely new alluvial soil having components of sand, clay
mud mixed with botanical matters resulting small bearing capacity less than 0.7 kg/cm2. Ground
elevation is from below +2.0m to +0,23m. Slope direction is not clear. The topography is divided
by many interlaced and connected rivers and channels.
3.2.3. Geological conditions
There are four main types of soil in District 2:
Gray soil: accounting for 7% of the area, mainly distributed in Binh Trung Dong and Binh Trung
Tay ward. There are three common types in this group: the typical gray soil having layer of stained
red on the ancient alluvial soil, Gley gray humus soil on the ancient alluvial soil; alum grey soil on
Page 36
the ancient alluvial soil. The soil layer is thick and favorable for annual and short-term industrial
crops.
Alluvial soil: accounting for 13% of the area, distributed in Cat Lai and Thanh My Loi
wards. This alluvial soil is formed on river sediments, mainly clay grain level, grain level rates
among layers are not unified which reach ideal values for rice cultivation favorable for agricultural
production and fruit trees planting.
Developed alum soil: accounting for 16% of the area, distributed in Thao Dien An Khanh,
Binh Khanh and An Phu wards. This soil is distributed in low terrain area, thus it is less likely to
wash the alum, mechanical component contains much clay, surface layer, the surface layer contains
organic matter with low consumption of phosphorus, rich in protein which dont benefit for
planting trees.
Potential aluminate soil: accounting for 64%, mainly distributed in Thu Thiem, Binh
Khanh, An Khanh An Phu, An Loi Dong, Thu Thiem Wards and a part of Cat Lai ward. This group
is composed of the heavy mechanical component, rich in organic clay and poor in phosphorus.
3.2.4. Climate condition
District 2 is located in the Subequatorial tropical monsoon climate (hot, humid, high
temperature and heavy rainfall), however the districts territory is surrounded and separated by the
majority of the Saigon River, Dong Nai and channel network as a result the climate is relatively
pleasant. In a year there are two distinct seasons: rainy season from May to November and dry
season from December to April next year.
Because of its location is near the equator, directly impacted by the tropical heat mode,
therefore the project area has high temperature and relatively uniform time. The seasonal
distribution of temperature in the project area is not much (3 4 0C)), with a slight increase at the
start of rainy season (April V, temperature above 29,00C) and a slight decrease at the start of dry
season (November XII I) temperature is ranged about 26,00C.
Due to high temperatures, much sunshine, the evaporation volume in the area is more than
1,200 mm/year, the rainfall is distributed according to season, therefore in the rainy season the
humidity is much higher than that in the dry season.
The project area has annual rainfall varies by season from 1200 1900 mm/year, rainfall
regime is classified into two different seasons with the dry season from May XII IV next year and
the rainy season from May XI. The number of rainy days during the year is from 102 150 days
and mostly concentrated in the rainy season, accounting for 90% of the total annual rainfall on an
average of every month from VI X is 20 days with rainfall.
Because the area is rarely affected by storms and air masses which are likely to cause heavy
rain, generally there are not many days of heavy rain, especially rainy day with more than 100 mm.
Every year, the whole area has only 57 days with more than 50 mm rainfall on average. The
number of days with more than 100mm is even lesser, every two years, however in recent years;
one year has two 3 rainfall with more than 100 mm on average.
Page 37
Figure 5. Annual rainfall map of Sai Gon-Dong Nai river basin

Table 8. Maximum rainfall in Ho Chi Minh City
Station
No
Year
01
1980
75,0
78,0
85,5
94,5
02
1981
58,3
101,0
98,8
99,8
03
1982
52,4
122,2
88,8
110,8
04
1983
122,0
97,5
24,1
130,7
05
1984
66,3
81,5
80,6
65,7
06
1985
69,0
92,0
55,0
77,7
07
1986
100,5
76,3
83,0
92,5
08
1987
33,0
60,5
62,3
94,9
09
1988
144,4
79,9
63,6
10
1989
105,9
110,2
124,2
89,5
11
1990
74,6
80,8
70,8
84,3
12
1991
84,8
80,8
56,1
113,1
13
1992
96,7
64,6
104,7
99,9
14
1993
169,9
56,3
84,0
89,5
15
1994
184,5
99,2
137,0
162,2
16
1995
58,3
108,5
92,5
95,3
Binh Chanh
Binh Chanh
Page 38
Station
No
Year
17
1996
62.3
122
93.5
94.6
18
1997
73.5
96.6
74.8
110.4
19
1998
62.4
92
103.8
134.1
20
1999
65.7
122.8
89.2
79.9
21
2000
120.2
130.5
104.0
135.4
22
2001
87.7
111.5
82.0
88.9
23
2002
95.1
91.7
102.5
70.2
24
2003
71
127.5
62.0
91.7
25
2004
166.3
171
142.0
112.3
26
2005
76.3
84
85.0
114.4
27
2006
67
69.8
77.0
148.4
28
2007
115.2
110.3
138.3
64.6
29
2008
66.8
72.5
73.3
83.5
30
2009
83.5
55.2
91.0
84.7
31
2010
91.3
100.2
75.7
138.5
32
2011
85.9
131.4
78.2
101.0
Binh Chanh
Binh Chanh
Rain in Ho Chi Minh City can be classified in to two main ties as follows:
-Lightning storms: This is common rain in the tropical region. This type of rainfall
accounted for most of heavy rains in the year. Although electrical storm rain can also occur with
high intensity, but generally not great due to short time only a few tens of minutes to few hours.
The greatest daily rainfall is only in the range of 50 100 mm, rarely up to 150 mm.
- Rain caused by storm or tropical depression: This type of rain rarely appears but brings
both rainfall intensity and total volume. Rain caused by storm or tropical depression normally
cause high frequency with great intensity and outstanding total rainfall volume. Rain caused by
storm or tropical depression can reach from 100 200 mm, even above 250 mm above even, but
very rarely.
Urban drainage arises mainly with rainfall in frequency from 10% backward, therefore
target of analysis target and calculation is lightning storms- a kind of tropical downpour.
Because of tropical downpour, rainfall intensity in the area of Ho Chi Minh has great
variability according to time and sometimes to space. This reduction will be recorded in
approximately 15 minutes each. This proves that, with water inlet works having flow concentration
time less than 30 minutes will facilitate drain quickly.
3.2.5. Features of hydrologic
The rivers and channels systems of the study area are a lot and very complicated. Small
rives and channels are connected each other without original source and mainly connected with
Dong Nai and Sai Gon rivers.
Situated in District 2 are two major rivers including Dong Nai and Saigon River with semi-diurnal
hydrological regime. Dong Nai River is the largest river in Dong Nai - Sai Gon river system with
bed width of 400-600 m, average depth of 12-15 m and the average flow rate of 500 m3/s. Saigon
River has small slope, narrow but deep river bed, less storage space so the tide flow is very deep
Page 39
and strong. Besides, within the territory also exist interlaced system of channels such as Ba Cua,
Rach Chiec channel, etc. hydrological regime and flow of these channels are mainly influenced by
Dong Nai River and Saigon rivers.
Saigon River: is the largest river passing through the borderline of District 2, this river
section has length and width of 22.3 km and 230-300 m respectively. This river is to help wash salt
as well as supply fresh water for the entire district, including agricultural and domestic activities.
Rach Chiec river
: 3.165 m length, 40 - 50m width, class IV.
Giong Ong To river: 3.1 km length, 50 - 80m width, class IV.

Dong Trong Channel : 2.2 km length, 30 - 50m width, class IV.
Big Ca Tre Channel
: 2.2 km length, 35 - 60m width, class VI.
Ba Cua river : 6.6 km length, 40 - 60m width, class VI.

Ky Ha river
: 4.0 km length, 40 - 60m width, class VI.
According to monitoring data at Phu An station, the highest water level (H max) and lowest
water level (Hmin) corresponding to different frequencies are as follows:
Table 9. Water level at Phu An station Sai Gon river by frequencies
Statistic data
Hmaxtb Cv
1.34
0.08
Hmintb Cv
-2.29 0.05
Cs
0.57
Cs
0.35
Water level by frequencies. m

0.1% 0.2% 0.5% 1%
1.88
1.82
1.74
1.68
50%
75%
80%
85%
-2.31 -2.37 -2.39 -2.40
1.5%
1.65
90%
-2.42
5%
1.55
95%
-2.44
10%
1.49
99%
-2.52
The highest water level on the Saigon River at Phu An station is now measured at Phu An
hydrological station on the Saigon river in 2008 is 1.55 m which is higher than record tide peak of
1.54 m existed 49 years earlier, in 2009 tide peak reached 1.56 m; in 2010 and 2011 tide peak
reached 1.57 m and 1.58 m respectively; the current highest tide peak is 1.61 appeared in
September 2012
Dong Nai and Sai Gon rivers are surrounding District 2 area and directly impact to the
hydrological regime of the area. This is a fluctuated semi-diurnal tidal regime which is reflected in
following oscillations:
Daily oscillation: tide is up and down 2 times per day, tide peak is approximately 50
minutes back over previous day.
Moon oscillation: tide is up 2 times per month (from 27th of previous month to 5th next
month and from 13th to 18th of lunar calendar)
Season oscillation: Hide tide is in spring (lunar calendar months of September, November,
December, and January). This period is enhanced by the flood of the rainy season therefore in the
urban area the high tide usually lasts from September to January of Western calendar.
Long cycle oscillation: Long cycle oscillation is not studied much, however by calculating
Hmax, Hmin, it shows less great variation.
The above oscillations affect in general way to the city locality.
Through the observation of hydrographic data for many years, it can be concluded that
water level is rather stable during the survey periods.
Annual high water level is not much different. The highest water level in a year is normally
ranged from 1.20 m to 1.45 m.
Page 40
Peak water level in flood season and dry season is not much different. The lowest water
level of tide peak is approximately 0.90 m.
Effect of upstream flow to the mode of water level on tide peak is not great; for the tide
foot, the difference is rather great and variable.
Range between highest and lowest water level is about 4m
Effect of water level features on flooding situation in this area is often expressed through
the following aspects:
Causing direct flooding: in low terrain areas, water directly overflows into the buffer
surface to cause flooding. Flooding time often depends on water level maintaining of the tidal
regime.
Causing indirect flooding: impacting drainage conditions, especially in periods of high
tides, high water prevents the drainage ability of drainage ditch and channel system.
The interaction between intense rainfall and tide
The interaction is considered on the basis corresponding to the tide distribution, values of
intense rainfall are listed in two directions:
Long period distribution:
Choosing each year a rainfall with the highest rainfall for the period 1952 1999 there are
total of 47 rainfalls with periods as follows:
High tide period
: 27 rainfalls, accounting for 63.82%.
Low tide period
Average tide period
Short period distribution:

Choosing the monitoring period from August 15 to September 30, 1989, with stations in
urban areas are recognized as Tan Son Nhat, Mac Dinh Chi, Cong Quynh, Thanh Da, Cat Lai, Ha
Tien Cement . The rains of high intensity (large scale) were recorded in the same period of high
tide period in month.
3.2.6. Social economic condition of the project area
1. Economic structure
The economic structure of District 2 consists of industry, commercial service and
agriculture accounting for 54.65%, 45.19% and 0.43% respectively. The proportion of non-state,
state-owned and joint venture is 41.63%, 8.43% and 49.94% respectively. Industry and handicraft
occupy high proportion but in fact, they have tended to decrease (from 89.34% in 2000 to 54.65%
in 2006), instead of commercial services have tended to increase (from 8.49% in 2000 to 45.19% in
2006). The trend of reduction in industry and agriculture proportion and increase in commercial
service ones are consistent with unavoidable rules and suitable with set social- economic targets
commensurate with the position and role of district 2 in the new era until 2020 and permanent.
Annual economic growth of three economic sectors reached 33.59%. Values of Industrial
and handicraft production, commercial services on the locality increase 23.47% and 20.68%/year
on average, agriculture production value decreased 6.1%/year on average.
2. Industry and handicraft
Development of industry and handicraft in District 2 was not proper as expected and
exploitation effectiveness of Cat Lai scene with more than 3,000,000 TEU/year. From 2000 up to
now, there is a cluster II (mainly in Phase I with over 44 hectares being filled) and put into use in
Page 41
the district. Through the development process, the entire Cat Lai Industrial Zone planned with 852
ha is gradually narrowed and moved to civil functions
3. Housing, construction: In the locality of District 2, housing quality is low. Semipermanent housing, temporary housing and permanent housing account for 42.7%, 53.9% and only
3.4% respectively. Currently, the housing quality is increasing, the permanent, semi-permanent and
temporary housing account for 17.3 %, 67.4% and 15.3% respectively.
The average construction density is low, but in the existing residential areas such as Thao
Dien, Binh Trung Tay, Binh Trung Dong etc. there is a very high construction density.
4. Public facilities:
Education- training: School year 2010 2011, in the district locality there are 22 preschool
classrooms (including 10 public schools and 4 private schools), 9 primary schools, 8 secondary
schools, 2 high schools. There are also 01 regular education center (in An Phu ward); 01
educational training center (in Binh Trung Tay), 01 technical-general- vocation (in Thao Dien
Ward) , 01 cultural college, 01 Maritime University etc.
Vocational training system is quite large due to heritage of historical conditions. The
governmental managed schools now are Construction college No. 2 (former High School No.7),
Fashion professional technique school. The current schools under the management of the city are
now professional technician high school with more than two ha area. The schools under the
management of the district are Thu Duc Industrial Engineering school (now Thu Duc Vocational
School) with an area of 1.2 ha.
Culture: Cultural works in District 2 has 6.5 ha area including:
- Cultural center (Binh Trung Tay)
- Children activities center (Binh Trung Tay)
- Sport and Physical Education center of District 2
- Cultural House of 11 wards
Sport and Physical Education: District 2 now has 02 football fields of wards, 01
swimming club, and 18 sport clubs. The total land area of playgrounds in the district of about 7.07
ha
Health care: District 2 has 01 health care center and 11 medical aid stations with total
patient beds of 123. In addition, the district also has a network of private medical facilities making
significant contribution to the common development of the sector. Average number of beds is 2.11
beds/1000 people, higher than the citys average of (two beds/1000 people)
5. Population scale
The population in 2011 was 140.627 people in the district, the population density is 28.27
people/ha. The ward having highest population density is Binh Trung Tay (16,370 people), the one
with the lowest population density is Thu Thiem ward (6,394 people).
The average population density in the District (2010) is 28.27 people/ha, in which the most
crowed ward is An Khanh (81.2 people/ha) and the least crowded ward is Thanh My Loi (7.6
people/ha). However, in 2011 and 2012 when implementing Thu Thiem new urban area project, the
actual local population of An Khanh ward was considerably decreased due to movement to the
resettlement areas.
Table 10. Population of wards in District 2 in 2011.
No
Name of wards
Population, people
rate %
Page 42
01
An Phu
13,866
9.86
02
Thao Dien
19,491
13.86
03
An Khanh
15,413
10.96
04
Binh Khanh
9,708
6.90
05
Binh An
15,668
11.14
06
Thu Thiem
6,394
4.55
07
An Loi Dong
6,637
4.72
08
Binh Trung Dong
14,383
10.23
09
Binh Trung Tay
16,370
11.64
10
Cat Lai
11,887
8.45
11
Thanh My Loi
10,812
7.69
Total
140,627
100
3.2.7. Technical infrastructure

Traffic road status: The total length of the road network in District 2 is 130.130m. (more
than 22 main roads and regional roads - not to mention small roads and roads in residential area
with right of way less than 12m), width of road bed is 7 36m right of way 20 153.5 m and
bitumen concrete structure.
Power supply status: District 2 is supply power from the general grid of the city, in the
District there are 110 kV, 220 kV grids, medium-voltage and low voltage grids to ensure 100%
supply for households using national grids.
Water supply status: Currently the main supply source of domestic water for the district is
provided from Thu Duc water plant, crossing the district are the main water supply pipelines
- Pipeline with grade 1 2000, on Ha Noi Highway belonging to Thu Duc water plant
(constructed in 1968)
- Pipeline with grade 1 2000, on Ha Noi highway belonging to Thu Duc BOO water plant
(constructed in 2008)
- Pipeline 1200; on Mai Chi Tho Avenue belonging to Thu Duc BOO water plant and
supply to District 7 where Nam Sai Gon urban area is under construction.
- Pipeline 2000 (XD 1964), on Ha Noi highway belonging to Thu Duc water plant at 4
Mailhold
Total maximum water capacity of the water supply pipeline in the area at present is 260,000
m3/day & night District 2
Total maximum water capacity of the water supply pipeline in the area at present is 260,000
m3/day/night.
3.2.8. Drainage status
Due to the geographical position, District 2 is surrounded by Dong Nai, Sai Gon river
system. In addition, there is inner network of channels such as Rach Chiec, Rong Ong To, Rach Ca
Tre, My Thuy River, Ba Cua Channel etc. Therefore, master drainage capacity in the district is
favorable and major drainage direction in the district is in the direction of these rivers and channels.
However, the project area is within downstream of the Saigon-Dong Nai river system, it is
influenced by semi-diurnal tide regime with 2 times tide is up and 2 times tide is down in one day,
Page 43
the drainage will get difficulty when rainy time period coincides with tide peak period and meet
advantages when it appears on tide footing
In general, the drainage system in the district is divided into 03 classes:
- Class 1 pipelines are the open channels, naturally receive domestic waste water, rain
water, small channels with grade 2 is mainly on duty of natural water drainage
- Pipelines with grade 2 are underground pipelines on main street axis which collect water
from Pipelines with grade 3 with diameter from D800 D2000 mm.
- Pipelines with grade 3 are pipelines in alleys or internal roads connecting to pipelines with
grade 2 having diameter normally less than 500 mm.
Existing drainage system is combined between rainwater and domestic wastewater
drainage. Drainage form is combined between underground sewer with diameter from D300 mm to
box culvert with diameter of 2000x2000 mm, ditch with knit cap from B300 B500 mm in Binh
Trung Dong, Binh Khanh areas with channels and rivers.
In general, density of sewer is still low, about 50% of the total area of the district and
unevenly distributed mainly in new urban areas. Status of flood condition also occurs frequently in
the regions of Thao Dien, Binh Khanh, along the road routes of Luong Dinh, Nguyen Thi Dinh etc.
The existing drainage systems lack of uniform specification as well as quality there is no
comprehensive study solution for common drainage capacity of the entire drainage system.
According to the preliminary statistics throughout District 2, the existing sewer lines were
built scattered in residential areas with diameter from D300- concrete box culvert with diameter
2000 x 2000 along the main traffic roads in the District, Thao Dien, Binh Trung Tay areas etc. Total
length of sewer lines are approximately over 30km.
Currently, the maintenance of drainage system is only dredging manholes periodically due
to limited funding. The drains are connected to each other, this allows using the network well but
because the construction has not been synchronized, it is difficult to control each trouble sewer
section.
Based on topographic conditions, rivers, geographical location and status of rainwater
collection and drainage system in the district, the catchment of District 2 can be divided into five
catchment areas as follows:
Area 1: including Thao Dien Ward and a part of An Phu ward (North of Hanoi Highway)
which currently is the construction area of mostly low-rise villas with an area of about 150
hectares, present population is about 18,700 people, this area was previously planned and built
relatively complete, joint drainage network has been established. Drainage direction is mainly to
open channels in the area. However, due to the low terrain characteristic, especially the area along
the Saigon River where flood condition caused rain or high tide often occurs. The existing drainage
network is old; its capacity does not meet drainage capacity.
Area 2: including An Phu, An Khanh and Binh An : area with residential areas construction
projects with relatively complete infrastructure, residents mainly stay along Tran Nao and Luong
Dinh Cua street, An Phu development urban area with 131 ha and City Horse have been built quite
a lot. Drainage system in the new residential areas ( area with 90 ha and An Phu development urban
area with 131 ha) are now relatively complete, however for new residential areas which have been
formed long time ago ( along Tran Nao street) due to its low-terrain therefore when rain or high
tide occur, it will lead to local flood condition. Rainwater is conveyed to open channels and main
Page 44
sewers on Tran Nao and Luong Dinh Cua. Yet, sewer lines on Tran Nao and Luong Dinh are old
now, serving mostly drainage along two sides of the road, thus its capacity is not sufficient to
ensure drainage for the area.
Area 3: including Binh An, Thu Thiem, An Loi Dong wards and a part of An Khanh ward
(Thu Thiem new urban area). Up to the present time, this area is only formed between Tran Nao
Street to the Saigon riverbank with an area of about 60 ha. Complete Thu Thiem new urban area is
concentrated with residents along Luong Dinh Cua Street with about 25,000 people; the area has
been formed with short and small channels and drains to serve drainage for existing residential
areas. However, most of the land is now unoccupied, which has been cleared to serve the
construction of Thu Thiem New Urban Area.
Area 4: including Thanh My Loi ward and a part of Binh Trung Tay ward. This area still
has much unoccupied land. Due to requirement of Thu Thiem resettlement project, this area has
several new residential projects and becomes administrative center of District 2. Technical
infrastructure has been built. But due to sparse population density, the drainage system has not been
fully invested.
Area 5: including Binh Trung Dong and Binh Trung Tay. This area focuses residents living
here long time ago, with more than 30,000 people. Infrastructure system has not been much
invested from 1998 until now; a number of roads and alleys need to be upgraded, improving
drainage area, made contribution to the improvement of the residential area.
In fact, the management work just stops at dredging manholes periodically on routes; other
information about the sewer system is very limited because the investment in sewer construction is
not unified. Many sewer sections are not dredged, resulting in limited drainage. Drainage is not in
time resulting some sewer sections are no longer in function.
The sewer lines without sufficient drainage capacity should be replaced or supplemented by
new sewer lines to ensure drainage for the project area and take advantage of the use of capable
sewer sections as sub-regional collection system.
3.2.9. Flood condition status in District 2
Situated in District 2 are two big rivers including Dong Nai and Saigon River with semidiurnal hydrological regime. Saigon River has small slope, narrow but deep river bed, less storage
space so the tide flow is very deep and strong. Besides, within the territory there are also interlaced
system of channels such as Ba Cua and Rach Chiec channels etc. The hydrological regime and flow
of these channels are mainly influenced by Dong Nai River and Saigon rivers
District 2 is located in the area with low and complicated terrain average height over sea
level from 0.5 m to 1.1 m, only Binh Trung and Cat Lai mounds have separate height from 2m to
5m. Areas of less than 1 meter high often suffer from flood and water drainage capacity depends on
the tidal regime. Flood condition caused by monthly high tide often occurs in Thao Dien, Binh
Khanh, along Luong Dinh Cua and Nguyen Thi Dinh streets.
As reported by the Center for Executive program against flooding, there are 03 flood
condition points in district 2 i.e. one on Luong Dinh Cua Street (An Khanh market area) and one on
Quoc Huong street in front of Culture University (Thao Dien Ward) and Nguyen Duy Trinh street
section from Giong Ong To market to Xay Dung bridge.
Survey results indicate that majority of channels and sewers were damaged at inlet holes,
the channels and channels are often being clogged by sludge and waste and many sections are
Page 45
turned into garbage disposal site. As a result, many points the network has become polluted and
flood condition points.
AU T XA
Y DNG MANG L
I THOA
T N
C CA
P II - III TRE
N
A BA
N Q.2
BA
N OHIE
N TRANG NE
NVA
NGA
P U
NG
WATER SANITATION STAGEII
CONSTRUCTION INVESTMENT DRAINAGE NETWORK LEVEL II-III IN DISTRICT 2
STATUS GROUNDMAP
QUA
N BNH THANH
T L - SCALE:
1 /1 0.000
1 5 0
D
Y
X
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Figure 6. Map of the existing condition and flood

The survey results also shows local flood occur in all the streets equipped with drainage
system although hydraulic calculations showed many sections, flood condition points still afford
an amount of water bigger than that of catchment area being in charge. Flood condition also occurs
in areas along rivers and channels.
3.2.10. Sewage status
1. Sewer network
The existing sewers were built long time ago scattering in residential areas with diameter
from DN300-DN1000 and made of reinforced concrete, located along the main roads in the
District, Thao Dien, Binh Trung Tay areas etc. The total length of the sewer lines are approximately
over 30km.
Urban wastewater collection system has been established (combine sewage system in old
residential areas) such as Thao Dien, Binh Trung Tay, Binh Trung Dong areas, however, in new
planning residential areas wastewater collection network has not been established or established
but not properly constructed in accordance with the planning which is completely separate
wastewater collection system, mostly using combined sewers. Thanh My Loi new residential area
with 174 hectares and Cat Lai new residential area has developed a sewer system but not yet built
its internal wastewater treatment plant.
Page 46
Some newly built sewer lines are primarily located along the new roads or in the new
residential areas such as An Phu An Khanh, Binh Trung Dong, Thanh My Loi etc.
Currently, all of the new construction planning areas have scale from 3 ha to 100 ha, the
approved drainage system in the detailed planning of 1/2000 is a separate sewer system. However,
due to lack of detailed drainage plan, drainage system of this area has not been planned and unified
but often discharged into the nearest channels connecting with the city drainage system which has
not been built as planned.
2. Pumping station, wastewater treatment plant
Some residential area projects were invested with the construction of internal wastewater
treatment plants with small capacity: District 2 administrative center in Thanh My Loi Ward, Binh
Trung Dong - Cat Lai, residential area and Cat Lai industrial zones.
3. Waste water discharge and quality status in the project area
- Domestic wastewater discharge of households: survey data indicate that 44%, 32% and
2% of domestic wastewater are discharged into self-penetrated septic tanks, directly into rivers,
streams or gardens and road respectively. Besides the use of self-penetrated solution, there is a
large number of households connect themselves to the existing channels and sewers system. The
data survey data shows that Thanh My Loi ward has nearly 70% connecting to the city channels
and sewers network and the discharge or add wastewater to the network is out of control.
The survey results also show that in other regions also have large number of illegal
connection to channels and sewers, especially areas nearby rivers and streams basin where the
water level is rather high, therefore the use of permeable wells is not effective and partly because
there is no area for septic tanks construction, sufficient fund and dredging service is not well done.
Disqualified and affected with disease wastewater being discharged into the sewage
network is considered urgent problem to be solved. Typically, wastewater of central market area
with COD exceeding 3 times, BOD5 exceeding 7 times and microbiology exceeding 9 times in
comparison with type C standards.
In city areas, domestic water is primarily discharged into wells, rivers and channels. For the
city peripheral, there will not have any plan to supply tap water for the residents until 2020 and
even within the project area, not until year 2020 can 20% of the population use tap water.
Surveys for the drainage and sanitation in these areas show that only a small number of
households have septic tanks, the bigger number builds toilets by digging holes without toilet
room. Generally, existing water supply, drainage or sanitation are provided by residents themselves,
for the period of 2020 it is almost impossible to execute a project to deeply intervene on water
supply, drainage and environment in this area.
- Waste water discharge of office buildings, hospitals and schools: business, trade, and
service bases using much water as restaurants, hotels get difficulties in waste water discharge and
treatment. The main cause of this condition is that permeability tanks have not enough capacity as a
result waste water is discharged into streets and sewers are directly connected into the citys rain
water system.
Part of the wastewater from agencies and enterprises are treated preliminarily in different
ways but are not effective, the other part is discharged directly into receiving sources. Figures show
that approximately 20% using septic tanks, 33% using for storage and 20% being discharged
directly into rivers and streams and 21% using septic tanks and being discharged directly into rivers
and streams.
Page 47
- Wastewater to be discharged from industrial and service facilities: At present, this

wastewater volume is not big, accounting for about 15-20% of the domestic wastewater volume.
Through the survey at 25 establishments under different production sectors, although it is not
severe but waste water of these facilities also pollute the environment in which waste water
discharged from factories is considered the worst over all.
3.3. Technology selection
3.3.1. Technical solutions to urban drainage & sewage
At the moment, in the big metropolitan areas in Vietnam as well as in other development
countries, the urban drainage & sewage of an urban area includes 3 systems as follows:
-
Common system.
Separated system.
Common system with Combined Sewer Overflow (CSO) and interceptors to collect
wastewater.
The technical features of the above systems are as follows:

+ Regarding the common system: the system shall collect rainwater and wastewater
(including industrial & domestic wastewater) to a sewer system and discharge them to the receiving
bodies (ponds, rivers & stream, ect.). In many cases, at the end of the network, CSO for rainwater
will be constructed in order to discharge a large amount of rainwater from heavy & prolonged rain
or rainwater after the rain and collect the wastewater when there is no rain as well as the amount of
initial precipitation to the treatment plant.
+ Regarding the separate system: drainage system and sewerage system are designed
separately. The system shall collect the domestic wastewater from households and industrial
wastewater to a sewer systems and the wastewater shall be treated at the treatment plant and
discharge to the environment. The rainwater shall be collected to the separated sewer and
discharged to the environment (rivers, streams and ponds, etc.) without any treatment. In the new
metropolitan areas and developed urban areas and developed countries, the system is normally
used.
+ Regarding the common system with Combined Sewer Overflow (CSO) and interceptors
for drainage & sewage is normally shall be designed in areas having existing drainage & sewage
systems but it is difficult to construct a new system here due to economic condition. Then the
existing systems shall be used as the common system but at the end of each sewer system, CSO
shall be constructed to separate the rainwater before discharging to the environment. When there is
no rain, all the wastewater shall be collected by interceptor system and conveyed to the treatment
system. In case of rain, at the beginning from 10 20 minutes, the dirty water with the wastewater
shall be collected through the interceptors and conveyed to the treatment system. In the later period
of the rain (after 10 20 minutes of the rain, the rainwater which is rather clean with a huge flow
shall dilute the wastewater and be discharged to environment through the outlets. Therefore the
system shall be not only suitable for the features and condition of the existing drainage & sewage
system in accordance with the financial condition but also proper for collection and treatment of
wastewater in accordance with regulations about environment condition.
3.3.2. Analysis on selection of the drainage & sewage system in the project area
Based on the drainage & sewage systems as mentioned above, the advantages and
disadvantaged of each system and application for each project area s are analyzed as follows:
Page 48
Regarding the common system

Advantages:
- The construction cost be the lowest in the three alternatives.
- The system shall be operated continuously in the year (in both dry and rainy seasons).
- It is necessary to construct the system with a suitable scale for rainwater as the wastewater
shall account for a very small flow in comparison with the rainfall.
- Easy management.
Disadvantages:
- Wastewater is not collected and treated, causing environmental population seriously and
germs for diseases and sickness. This is the reasons for environmental pollution, especially on soil,
water and air ... affecting the lives and health of communities in the project area and surrounding
areas.
- If wastewater is collected and treated at the WTP, the capacity of the WTP shall be very
high, leading to the great costs for construction and management & operation of the project as well
as reduction of efficiency and feasibility in terms of socio-economy.
- The working condition of the system shall be not stable. In the dry season, the wastewater
flow shall be small in comparison with the pipeline scale. The small flow rate shall cause settling
and clogging inside the sewer. Therefore dredging should be done regularly for smooth flow. The
operation & management cost is huge.
Regarding the separate system.
Advantages:
- The environmental sanitary shall be guaranteed best without environmental pollution for
surrounding areas.
- The wastewater shall be collected and treated thoroughly before discharging to the natural
environment, create a fresh environment for the project area and for the city as well.
- The collecting system shall be separated for wastewater and rainwater, which shall
facilities the flood control and environmental protection, saving of water resources. In the long
term, rainwater collection system can be used as a reserved source for watering in green areas and
parks in the dry season.
- Be suitable for new urban areas and urban areas which are not invested with the drainage
& sewage systems.
- The costs for operation and management is lower than the two other alternatives.
Disadvantages:
- The initial investment for construction will be high as two new network for drainage &
sewage shall be constructed.
- In the dry season, the sewer network for rainwater shall not operate so often, therefore the
investment in the sewer network may be not effective. However, the sewer network could work as
a rainwater storage area in the dry season for watering the green areas and park, & fire-fighting.
- The flow rate of the dirty water is small, diameter of the pipeline is small with high slope
and depth. Therefore it is necessary to have transition pumping stations.
- The management shall be more complicated as the 02 systems shall be operated at the
same time.
Page 49
Regarding the Common system with Combined Sewer Overflow (CSO) and
interceptors to collect wastewater
Advantages:
- The existing system could be utilized, therefore the existing condition of the area shall
remain and the cost for investment shall be deducted.
- The quantity of excavating in the central area is limited.
- No environmental pollution due to construction activities.
- In accordance with the needs of urban renovation and upgrade of sewerage network
systems, especially suitable with not huge amount of initial investment capital but high
requirements about environment.
Disadvantages:
- The interceptors collect dirty water from CSO to the wastewater treatment station which is
located at the end of main sewer. Therefore it is also necessary to construct different transition
pumping stations.
- The outlets must be constructed with the auto gate in order to prevent the water flowing to
the sewer in the dry season without rain.
- The management & operation for the system is very complicated.
- The working condition of the system is not stable. In the dry season, the wastewater
amount is not so much with small velocity, resulting in the clogging in sewers. It is necessary to
dredge the sewers regularly and the operation and maintenance costs is very high.
Based on the analysis about the advantages and disadvantages of each systems as stated
above, based on the existing condition of drainage & sewage system in the District 2, where the
drainage & sewage systems are almost unavailable, based on the fund for the project investment
and plan for socio-economic development of the city which has been approved by the Prime
Minister and the detailed planning of District 2, which is approved by HCMC, the District 2 shall
become a new urban area and economic & commercial center of the city. And in accordance with
the planning about the central wastewater treatment plant of the city and take advantages of the
HCMC Environmental Sanitary Project, Phase 1 (Nhieu Loc Thi Nghe), we would like to
propose to select a design options of 02 separate for rainwater and wastewater collection. In the
chase the system design is as follows:
- The wastewater shall be collected to a separate system. The total amount of wastewater in
the extended area shall be collected to the extended wastewater collection system, which is
collected with the existing main transmission pipeline to the WTP for treatment before discharging
to the environment.
- Regarding the extended wastewater treatment, the households, offices and public works
shall be connected directly to the sewage system, and no longer connect to the local treatment and
discharge system. The direct connection shall facilitate significantly for the customers. The
drainage shall be collected to a separate drainage system and conveyed to the nearest stream.
The option of a separate drainage system shall not only facilitate for the design of the
drainage network but also for design of sewage network.
3.3.3. Identification of drainage system scale.
1. Design standards
Design Standard TCVN 7957: 2008 of MOC.
Page 50
Building code of Vietnam, volume 1, 2, 3.

Standard and design planning of urban construction 20 TCN 82-81.
The socio-economic development plan of District 2 and the drainage & sewage network
master planning of HCMC to 2025.
Reference to criteria and requirement of drainage & sewage system in nationwide urban
areas such as Hanoi, Haiphong, Danang and other surrounding areas in HCMC.
2. Proposal about drainage and tidal control as well as flood control in District 2.
a. Overall solution.
- Pursuant to natural condition in District 2, planning maps and orientation for socioeconomic development in District 2.
- According to the master plan of irrigation system for flood control in HCMC (Planning
1547) in District 2, HCMC is in the Zone II of the Planning 1547, a developing zone with more
favorable drainage & sewage condition. Therefore it is possible to arrange facilities for flood
control and irrigation. The overall solution to irrigation and flood control for the area is as follows:
+ For urban areas, it is necessary to make embankment higher than the water level in
Saigon and Dong Nai River with consideration about the impact of the flood control works with the
embankment level about +2.50 m.
+ For the garden homes and tourist areas, it is necessary to have a closed dike with culverts
under the dykes for irrigation as the water level in Sai Gon and Dong Nai River is lower.
+ For improvement of waterways, it is necessary to dredge and rehabilitate channels as well
as reduce the water pressure from Saigon and Dong Nai River for new urban areas along the
Saigon River.
According to the flood control in the city, the scale of dykes and bridge and rehabilitating of
channels in District 2 are as follows:
- Regarding dykes:
+ The dike along the left bank of the Saigon River (Under direction from Dau Tieng Lake to
the sea) from Ong Dau Channel to Vinh Binh Channel in combination with the construction of a
road with a length of 6 km and dyke level of + 2.50 with 12 m width.
+ The dike along the Dong Nai River, in combination with the road construction from Long
Phuoc, Long Truong, Truong Thanh to Phu Huu with a length of 13.5 km and dyke level of 3,0
3,2 m with 12 m width.
+ Currently, the dyke surrounding Saigon River in Thao Dien Area to Thu Thiem is being
studied by the HCMC Steering Center of the Urban Flood Control Program.
- Regarding transport: big bridges on the left side of Sai Gon River are as follows:
Table 11. Scale of bridges on the left side of Sai Gon River in accordance with irrigation
planning 1547.
NO.
Works
Unit
Aperture
Notes
Bridge
Ky Ha Bridge
90
Giong Ong To Bridge
135
Constructed
Rach Chiec Bridge
135
Constructed
Go Dua Bridge
135
Being constructed
Page 51
Ong Dau Bridge
45
Dap Bridge
45
Rach Ba Cua Bridge
135
Rach
Bridge
180
II
Dykes
km
13,5
Ong
Nhieu
- Regarding the channel rehabilitation: dredging of rivers and channel for waterway with a
total length of 83,200 m, average width of 6 15 m and the average depth of -2.0 -4.0 m.
Table 12. The expected scale of channels in accordance with the Planning 1547.
No.
Rivers & channels
L, m
Designed crosssection
B, m
, m
60
-4.00
60
-4.00
50
-3.00
50
-3.00
40
Technical
grade
1
2
3
4
5
Ong Nhieu Channel

Ba Cua Channel
Giong Ong To Channel
Rach Chiec Trau Trau
Go Cong Channel
7,500
7,000
7,000
11,500
5,700
Cay Cam Channel
3,500
20
-3.00
Thau Channel
2,500
20
-2.00
Long
Ward
Truong
Nuoc Duc Channel
2,500
20
-2.00
Long
Ward
Truong
9
10
11
12
13
14
15
16
17
18
19
20
Mot Tan Channel

Dat Set Ba Lang Channel
Ruot Ngua Channel
Ba Hien Channel
Go Lon Channel
Ngon Ngang Channel
Ngon Giua Channel
Ngon Tiem Channel
Bang Channel
Ca Tre Lon Channel
Cau Ong Cay Channel
Muong Channel
Ky Ha Channel Ong Keo
Channel
Total
4,000
3,000
2,000
2,000
1,500
2,500
2,500
3,000
2,500
4,000
2,000
2,500
20
20
20
20
15
15
15
15
20
20
10
20
-2.00
-2.00
-2.00
-2.00
-2.00
-2.00
-2.00
-2.00
-2.00
-2.00
-2.00
-2.00
4,500
30
-2.00
21
4
4
4
4
6
Notes
Local
Local
Local
Local
Local
Long
Truong
Ward
Phu Huu Ward
83,200
Therefore retaining and rehabilitation of the existing channel shall contribute to the
drainage and flood control in high time, as one of the effective urban drainage measures for the
quickly urbanized area like District 2. It is more favorable as District 2 is located in the area which
is affected by the semi-diurnal tidal regime with connected channels.
Page 52
Based on this point of view, the existing channel shall be retained as much as possible.
However it is necessary to define some of the necessary criteria as the basis to select channels to be
retained in order to prevent difficulties for transport planning, urban scenery and comply with
special planning & socio-economic plan of the District which are proved by HCMC PC. According
to the study, we would like to propose some criteria as follows:
+ The channels for waterway in accordance with inland waterway planning.
+ The channels are used for drainage in accordance with the drainage master plan of
District 2.
+ The channel has been retained in accordance with the master plan of District 2 and the
detailed master plan of 1/2000 for sub-basins and approved projects.
+ The channels in appropriate positions suitable with the drainage system with the proposed
drainage solution could be used for the drainage system in the future.
+ The existing and big channels in accordance with the flood control planning of the city
shall play a decisive role for the area.
+ The channels having no impact on the transport and architectural planning.
On the other hand, because the project area is affected by the semi-diurnal, causing flood
not only due to the rain but also by tides. Thus the tide control is one of the solutions to increase the
storage capacity of rainwater in channels. In the long term, it is necessary to study to construct tidal
gates at Giong Ong To Channel Gate and Chiec Channel gate in order to improve the water
retention in channels.
b. Solution for drainage of the project
The investment on a complete drainage system for a new urban area affected by high tide
with a large number of connected channels is very huge, including construction collection pipe line,
grade 1, 2 and 3, dredging the channel in order to improve the flow and tide control to regulate the
flow, etc. In order to solve the above matter, it is necessary to have time and financial funds, which
are beyond the investment for the project.
Therefore, within the scope of the project we shall only focus on studying about solutions to
construction of pipeline with grade 1, 2 and 3 on the basis of natural condition, existing drainage
system, planning of land use in each period in combination with other drainage & sewage project
in District 2, divide the discharge basin for each pipeline with grade 1, 2 and 3, calculate scale of
collection pipeline.
Basis for calculation of the works scale is as follows:
- Keep the existing drainage network.
- Construct an additional drainage network if the condition is acceptable.
- Construct to replace old existing drainage network which is not qualified for drainage and
sanitation.
- Develop completely new drainage system for new roads or roads without drainage
systems.
- Study about the rehabilitation and construction of embankment for rivers and streams,
which are defined as the main drainage route to ensure the quick discharge.
- Construct underground sewer in the basins.
- Regarding the existing residential area having natural elevation higher than > 1.5 m (basin
6), it is necessary to implement the rehabilitation and investment in the additional drainage system
Page 53
on roads to ensure the quick discharge and investment in a gate for discharging to rivers (being
affected by tide or flood).
- Regarding the new residential areas which are not invested for development, the urban
drainage is associated with the embankment above the tidal level and flood level (it is necessary to
analyze soil characteristics for construction of drainage system); the embankment 2.0 m and
investment in a completed infrastructure system shall be implemented in the residential areas
during the project implementation in accordance with the approved plannings of 1/500.
- In a long term, it is possible to construct rainwater pumping stations to increase the flood
control cycle to 15 20 years.
- Install tidal gates at the outlets in order to prevent the water flowing back to the sewer due
to the high tide.
3. Zoning of drainage basins
The expanded drainage system shall focus on the partially developed area in District 2
which is not provided with good drainage service.
Based on the natural condition and reference to the master plan of the studied area, the
studied area is divided into key sub-basin with the detailed information listed in the following
tables. The main basins are divided into 340 sub-basins and put into the hydraulic calculation
models.
Basin 1: On the north of Hanoi Highway (Thao Dien Ward and a part of An Ph). The total
basin area is 365 ha, including 2 sub-basins.
- Sub-Basin 1A is located on the west of Thao Dien Ward with the area of 204 ha and
limited by Hanoi National Highway, Thao Dien, Nguyen Van Huong and Sai Gon River. The
existing drainage condition is as follows: the common sewers D400 connecting with D600, D800
have been constructed on Nguyen Van Huong Street, Thao Dien and Quoc Huong Street toward Sai
Gon River, Ong Di Channel and existing channels in the residential areas. This area is often
flooded in the high tide due to low ground elevation, old existing drainage system which are no
longer capable of drainage in the area.
- Sub-Basin 1B is located on the east of Thao Dien with the area of 161 ha and limited by
Hanoi Highway, Thao Dien, Dua Nuoc Channel and Sai Gon River. The existing drainage
condition is as follows: the common sewers D400 and D600 have been constructed for discharge
toward Sai Gon River.
Page 54
I HANO
I
L=70
i=0,7
Sub.1A
I QUA
N1
Sub.1B
1500
L=500 i=0,7
1500
L=500 i=0,7
1500
Figure 7. Map of Thao Dien Basin Basin 1

Basin 2: the basin along Tran Nao Street (Binh An Ward) with the basin area of 122.9 ha
with the two sub-basins.
- Sub-basin 2A located in Tran Nao Street, with an area of 52 ha and limited by Hanoi
Highway, Tran Nao Street, Luong Dinh Cua Street and Sai Gon River. The existing drainage
condition is as follows: a common sewer D400 has been constructed for direct discharge toward
Sai Gon River.
1500
800
Sub.2A
Sub.2B
2,00
Figure 8. Map of Tran Nao Basin Basin 2

- Sub-basin 2B is located on the east of Tran Nao Street, with an area of 70.9 ha and
limited by Hanoi Highway, Tran Nao Street, Luong Dinh Cua Street and Sai Gon River. The
Page 55
existing drainage condition is as follows: a common sewer D400 has been constructed for direct
discharge toward Sai Gon River.
Basin 3 - Thu Thiem New Urban Area has natural area of Binh Khanh Ward, An Khanh
Ward and Thu Thiem Ward. This is a new urban area, where the sewage and drainage are not
constructed. The basin is divided into 3 sub-basins as follows:
- Sub-basin 3A North Thu Thiem Area (a part of Binh Khanh Ward) has a natural area of
187.2 ha, limited by Luong Dinh Cua Street, Ca Tre Len Channel, Ca Tre Nho Channel and Sai
Gon River. The existing elevation of the area is 0,6 1,4m.
- Sub-basin 3B West Thu Thiem Area ( a part of An Khanh Ward and Thu Thiem Ward)
has a natural of 149 ha, limited by Mai Chi Tho Street, Ca Tre Lon Channel and Sai Gon River.
- Sub-basin 3C South Thu Thiem Area (a part of An Loi Dong Ward and Thu Thiem
Ward) has an area of 179 ha, limited by Mai Chi Tho Ward, Ca Tren Lon Channel and Sai Gon
River.
2,00
1,59
800
2,00
1,53
Sub.2A
Sub.2B
I QUA
N1
GA THUTHIE
M DKIE
N
B4500
2,00
1,90
Sub.3A
I QUA
N1
Sub.3B
I QUA
N1
Sub.3C
I QUA
N4
Figure 9. Map of Thu Thiem Urban area Basin Basin 3

Basin 4 - An Phu new urban area (a part of An Phu Ward, Binh Trung Tay Ward) has a
natural are of 399.2, including 2 sub-basins:
Page 56
I QUA
N1
1500
B4000
Sub.4A
2,00
1,67
2B2500
2,00
1,59
800
B4000
2,00
1,53
Sub.2A
Sub.2B
GA THUTHIE
M DKIE
N
2,00
0,73
2,45
2,45
B4500
2,00
1,90
Sub.4B
Sub.3A
Figure 10. Map of An Phu New Urban Area Basin Basin 4

- Sub-basin 4A is located on the North of Mai Chi Tho Street in An Phu Ward with an area
of 321 ha, limited by Mai Chi Tho Street, Dong Van Cong Street, Hanoi National Highway and Ca
Tre Nho Channel. The planned ground elevation of the area is 1,8 2,0 m. The drainage system in
the area shall be constructed in accordance with the residential area planning project.
- Sub-basin 4B is located on the North of Mai Chi Tho Street in An Phu Ward with an area
of 78.2 ha, limited by Mai Chi Tho Street, Ca Tre Lon Channel and Sai Gon River. The drainage in
the area is being constructed for water discharge toward Sai Gon River.
Basin 5 is located on the East of Dong Van Cong Street and along Sai Gon Long Thanh
Dau Giay Expressway with an area of 515,5 ha including 2 Sub-basins. At the moment, the
drainage system in the area mainly follows the ditches on the road sides or has not been
constructed.
Page 57
I HANO
I
(1600x1600)
L=70
i=0,7
2,00
0,32
1500
L=500 i=0,7
1500
L=500 i=0,7
Sub.5A
B4000
I LONG THA
NH
Sub.5B
2,00
1,67
2B2500
2,00
1,59
R
2,00
1,95
B4000
2,47
2,47
2,00
0,73
Figure 11. Map of Basin 5

- Sub-basin 5A is the entire are of Rach Chiec Sport Center in An Phu Ward with an area of
461.5 ha, limited by Sai Gon Long Thanh Dau Giay Expressway, Dong Van Cong Street and
Hanoi Highway.
- Sub-basin 5B includes South Rach Chiec Residential area, An Phu Ward with an area of
99 ha, limited by Gon Long Thanh Dau Giay Expressway and Giong Ong To River.
Basin 6 includes the existing residential area on the east of Dong Van Cong Street
(interprovincial road 25B) and on the east of Nguyen Thi Dinh Street with a natural area of 607,75
ha with two sub-basins.
- Sub-basin 6A has an area of 95.75 ha along Nguyen Thi Dinh Street and Dong Van Cong
Street. Regarding the existing drainage condition, some sewers D400- D600 connect with main
sewer of D1000 in Nguyen Thi Dinh Street, D1200 and box culvert 2000x2000 in Nguyen Van
Dong Street (Interprovincial Road 25B)
- Sub-basin 6B has an area of 510 ha, limited by Nguyen Thi Dinh and Ring Road no. 2.
The area has a rather high ground elevation, from 2,4 5,2 m on average. Regarding the existing
drainage condition, some sewer networks D400 D600 and channels along the road and main
sewers along Nguyen Thi Dinh Street and Nguyen Duy Trinh Street. However the discharge
network has not been invested sufficiently.
Page 58
Sub.5B
2,00
1,67
I QUA
N9
2,00
1,95
2,47
2,47
2,45
2,45
Sub.6B
2,00
1,04
3,00
3,00
R
RA
NG HANO
I
3,65
3,65
2,00
0,95
Sub.6A
2,00
1,22
CA
U KY
HA
2
Figure 12. Map of Basin 6

Basin 7 is located in Thanh My Loi Residential Area on the West of Dong Van Cong
(Interprovincial Road no 25B) with an area of 500 ha, limited by Dong Van Cong Street and Ring
Road no 2, Sai Gon River. Regarding the existing drainage condition, a sewer network of D400D600 has been established in the newly invested residential area. Regarding the southern area in
which investment has not been done for the area, sewer system has not been constructed yet.
Basin 8 is located in Thanh My Loi Cat Lai Residential area on the South of Ring Road
no. 2 with a natural area of 818 ha, limited by Dong Van Cong Street and Ring Road 2 and Sai Gon
River. Regarding the existing drainage condition, the residential area has been constructed with a
sewer D400 D600, discharging to main sewer D1200 D1500 on Nguyen Thi Dinh Street and
natural channel in the area. Some new residential areas have not developed with the infrastructure.
Page 59
Sub.4B
2,00
1,04
3,00
3,00
R
RA
NGHA
NO
I
3,65
3,65
2,00
0,95
Sub.6A
2,00
1,22
Sub.8
2,00
1,76
Sub.7
2,00
0,44
2,00
0,84
2,00
1,79
2,00
0,75
2,00
0,80
CA
U KYHA
4
2,00
0,54
CA
U KYHA
1
2,00
0,91
Figure 13. Map of basins no. 7 and 8

4. Hydraulic Calculation for scale identification for works
The hydraulic calculation is done based on the drainage route identification. Discharge
basins are defined to specify the discharge area which is covered by the sewer. The principle for
route identification and basin division is based on the actual discharge direction and different cells,
which are divided from a basin. From the cells, it is possible to calculate the discharge area and
select the coefficient of coverage, etc. In the feasibility report, the preliminary calculation shall be
made for the new construction and presented in the statement for the basic design.
Calculate the drainage flow in accordance with the formula:
Q = q F (l/s)
In which:
Q: Calculated rainwater flow (l/s)
q: Calculated Rainfall intensity (l/s)
: Coefficient of coverage
F: Calculated water collection area (ha)
q is determined based on the climate parameters at HCMC monitoring station as follows:
q=((20+b)^n*q20*(1+C*lgP))/(T+b)^n
(Formula of Tran Viet Lien)
In which:
b: Correction parameter, b=12.09
n: Index of decreasing intensity over time t, n=0.8996
T: Raining time. The calculated time T (second) is defined in accordance with the formula:
T = to + t1 + t2 (2)
In which:
to: time for water running to ditches on road
Page 60
t1: time for water running to ditches through collection chamber (if the collection chamber
is not provided in the sub-area).
t2: time for water running inside sewers to the calculated section.
C: Coefficient about the typical feature of each area, C=0.2139
q20: Rain intensity, corresponding to a rain in 20 minutes, q20= 224.7
P: Rain frequency, cycle of a repeated rain (overflow cycle). With the features of Ho Chi
Minh and economic conditions, choose P = 2 years for calculation of sewers with grade 2 and 3.
Choose P = 5 years for calculating the channel with grade 1.
Hydraulic calculation for drainage network (Manning formula):
Q A xV (m 3 /s)
V
1 2/3 1/2
R x S (m/s)
n
In which:
Q - calculated flow(m3/s)
A - cross-section area of the flow (m2)
V - average flow velocity (m/s)
n - roughness coefficient, depending on the nature of river bed surface
R - Hydraulic radius (m)
S - Hydraulic gradient(m/m)
5. Scale of items in drainage works
The proposed items are based on the hydraulic calculation results, site survey results about
the existing condition of drainage in District, actual condition of localities and comments &
requirements of the Employer:
Page 61
Table 13. Analysis on the investment in items of drainage system

NO.
Basin
Area (ha)
Features of residential
areas
Basin 1: On the north of

Hanoi Highway
365
Existing residential area
Basin 2: basin along Tran Nao

Street
122
506
Most of land is vacant.

Compensation work has
been done and
construction has been
stated in the new urban
area.
Basin 3: Thu Thiem New

Urban Area
Basin 4 - An Phu new urban

area (a part of An Phu Ward,
Binh Trung Tay Ward)
Basin 5 - area on the East of

Dong Van Cong Street and
along Sai Gon Long Thanh
Dau Giay Expressway (a part of
An Phu Ward)
Drainage condition
The common system is
constructed rather
completely
The common system is
constructed rather
completely
Planning
orientation
Investment funds
Existing
residential area
World Bank and

State Budget
Existing
residential area
World Bank and

State Budget
Drainage system has not

been constructed
Thu Thiem
New Urban Area Residential Area
PMU
399.2
Population density in the

area has not been high. In
the area, most of the
projects about residential
areas have been
implemented or not
invested yet
A drainage system in new

residential areas has been
established in new
residential areas and main
street but have not
completed yet
A new urban
area. A part is
being
constructed and
other parts are
not invested for
construction
515.5
Most of land is vacant. A

part is being invested for
construction. Most of the
areas have not constructed
yet.
Drainage system has not

been constructed
Sport center and

new urban area
Project investors
shall be in charge of
in the residential
areas, WB and state
budget is used for
investment in the
main route on Luong
Dinh Cua Street.
Page 62
NO.
Basin
Area (ha)
Basin 6: the existing area on

the East of Dong Van Cong
Street (Inter-provincial Road
25B)
605.7
Basin 7 - Thanh My Loi

Residential Area on the West of
Dong Van Cong (Interprovincial
Road no 25B)
Basin 8 - Thanh My Loi Cat

Lai Residential area on the
South of Ring Road no. 2
Features of residential
areas
Drainage condition
Common system has been
established, but not yet
completed
500
Most of land is vacant. A

part is being invested for
construction. Most of the
areas have not constructed
yet.

completed
818
Low population density

and high ratio of vacant
land. A part under the
project is being invested
for construction, the
remaining areas are in the
new residential areas but
not being invested yet

completed
Planning
orientation
Existing
residential area
Investment funds
World Bank and
State Budget
Project investors
in the new residential
areas, WB and state
New Urban Area
budget is used for
investment in the
main route on Dong
Van Cong Street.
Project investors
in the residential
areas, WB and state
New Urban Area budget is used for
and industrial
investment in the
area
main route on
Nguyen Thi Dinh
Street and Ring Road
no. 2
Page 63
Table 14. Scale of works under the proposed drainage system

No.
System
Construction
Thao Dien
Area
Outlet
Construction
Soth of Thao Dien
II
Items
Outlet
Unit
Quantity
Pipeline
- Pipeline 1500
3.570
- Pipeline 1200
3.770
- Pipeline 1000
Outlet
- Outlet 1500
540
Pcs
- Outlet 1200
Pcs
- Outlet 1000
Manhole
Pcs
Pcs
85
Pcs
88

Outlet
- Outlet 1000
Pcs
14
Pcs
187
pcs
- Outlet 800
pcs
10
- Outlet 600
pcs
13
- Outlet 400
Pipeline
- Pipeline 1500
pcs
1.493
- Pipeline 1200
2.406
- Pipeline 1000
886
- Pipeline 800
Outlet
- Outlet 1500
1.119
pcs
- Outlet 1000
pcs
- Outlet 800
Manhole
pcs
pcs
38
pcs
58
pcs
24

Outlet
pcs
28
pcs
148
- Outlet 800
pcs
- Outlet 600
pcs
- Outlet 400
pcs
pcs
Page 64
No.
III
Area
System
Items
Unit
Quantity
Pipeline
701
- Pipeline 2000
1.610
- Pipeline 1500
2.612
- Pipeline 1200
431
- Pipeline 1000
4.768
- Pipeline 800
5.141
- Pipeline 600
858
- Pipeline 500
484
pcs
- Outlet 2000
pcs
- Outlet 1500
pcs
- Outlet 1200
pcs
- Outlet 1000
pcs

(2000x2000)
pcs
15
pcs
36
pcs
58
pcs
12
pcs
107
pcs
118
pcs
21
pcs
13
pcs
380
pcs
pcs
- Outlet 1500
pcs
- Outlet 1200
pcs
- Outlet 1000
pcs
- Outlet 800
pcs
- Outlet 600
pcs
Outlet
Construction
Manhole
Outlet
Outlet
Page 65
No.
Area
System
Items
- Outlet 400
Unit
Quantity
pcs
3.3.4. Identification of sewage system scale.

1. Design standards
Design Standard TCVN 7957: 2008 of MOC.
Building code of Vietnam, volume 1, 2, 3.
Standard and design planning of urban construction 20 TCN 82-81.
The socio-economic development plan of District 2 and the drainage & sewage network
master planning of HCMC to 2025.
Reference to criteria and requirement of drainage & sewage system in nationwide urban
areas such as Hanoi, Haiphong, Danang and other surrounding areas in HCMC.
2. Wastewater standards
Dirty water flow in an urban area is related to the water demand. According to a study result
under the HCMC Revised Master Construction Plan (in period of 2010 2025) and the Revised
Construction Plant of District 2 by HCMC Planning Institute, the norm for water consumption in
the study area in accordance with the HCMC water supply planning to 2025 is as follows:
Table 15. Norm for water supply in accordance with the proposal of the city
No.
Water supply demand
Norm of water consumption

To 2015
To 2020
Domestic water
180 l/person/day
180 l/person/day
Public services
40 l/person/day
40 l/person/day
Visitors
30 l/person/day
30 l/person/day
Handicraft
15 l/person/day
15 l/person/day
Public work at under management of the

city
40 m3 /ha/day
40 m3 /ha/day
Industrial areas
40 m3 /ha/day
40 m3 /ha/day
Daily coefficient of non-regulation
1,2
1,2
Hourly coefficient of non-regulation
1,5
1,5
3. Estimation of population scale

The total population of District 2 in the revised master planning of District 2 approved by
HCMC PC is estimated at 650,000 persons.
The estimated population density is 118 persons/ ha. In the district area, the population is
rather high (160 person/ ha), excluding the functional areas of the city (Thu Thiem New Urban
area, Rach Chiec Sport Center, Cat Lai and Thanh My Loi Industrial Zone), higher than the average
density of the city (65 person/ ha in 2020) and little lower than the density of Block A Phu My
Hung Urban Area in District 7 (230 persons/ ha)
Page 66
Table 18. Estimated population scale in District 2 to 2020

No.
Items
Unit
Estimated
population
Population scale
Year 2015
Persons
370,000
Year 2020
Persons
650,000
Annual growth rate of population
2011 2015
3,0
2016 2020
4,5
Page 67
4. Estimation about wastewater amount in District 2.

Table 19. Daily Wastewater flow in District 2
Present time
No.
Water usage
Norm of water
consumption
Population
(persons)
To 2020
Wastewater
flow (m3/day)
Norm of
water
consumption
140,629
Population
(persons)
Wastewater
flow (m3/day)
Domestic wastewater
Domestic usage
180 l/person
22,781.9
180 l/person
105,300.0
Public services
40 l/person
5,062.6
40 l/person
23,400.0
Visitors (25% of population)
30 l/person
949.3
30 l/person
Penetration amount: 10% (1+2+3)
Daily coefficient of non-regulation
35,157
Hourly coefficient of non-regulation
1.2
38,007.8
175,675.5
1.5
1.5
Production wastewater
Industrial zones
40 m3/ha
4,387.5
13,308.8
1.2
Highest flow
II
162,500
2,879.4
Highest flow
6
650,000
272,79 ha
2,375.5
10,979.7
10,9111.6
10,9111.6
10,911.6
40 m3/ha
272.79 ha
10,911.6
Therefore the total domestic wastewater flow in District 2 at the present is from 31,673.4 m 3/day to 38,007.8 m3/day. To 2020, the total
domestic wastewater flow in the district will be from 146,396.3 m3/day 175,675.5 m3/day.
The total industrial wastewater flow to 2020 in the District is 10,911,6 m3/day.
Page 68
5. Development orientation of sewage system in District 2.

The sewage system includes the sewer network and wastewater treatment plant.
a. Industrial wastewater:
- The industrial wastewater is collected to the sewer into the local treatment plant in
industrial zones.
- The industrial wastewater after treatment must comply with QCVN 40:2011/BTNMT
before discharging to the environment.
b. Wastewater from residential areas:
- The sewer system collecting wastewater from residential areas:
+ The main sewer route shall transfer the wastewater to the transition pumping station and
to the central wastewater treatment plant of the city.
+ The branch sewer route is a separate sewer. The sewer shall collect wastewater from the
discharging sources to the wastewater collection point.
- Orientation for domestic wastewater treatment:
+ Step 1 (serving for the period prior to 2020): The residential projects having wastewater
flow Q 1000 m3/day must construct local wastewater treatment plant. The wastewater after
treatment must meet TCVN 7222- 2002 (for permanent wastewater treatment plants) and QCVN
14:2008/ BTNMT (for temporary treatment plants) before discharging to the environment. The
project having wastewater amount Q 1.000 m 3/day, the wastewater shall be transported to a
collection point (regulation tank) for easier checking wastewater quality and connection with the
main sewer.
+ Step 2 (after 2020): In the future (after 20 years, the operation time of local treatment
plant shall be expired), the central wastewater treatment plant of city will be completed and
operated. Then the wastewater of the planned area (from the collecting point or local temporary
treatment plant) shall be conveyed to the main sewer route of the city and to the central wastewater
treatment plant of the city.
c. Local treatment system:
Regarding new residential areas, the sewage system shall be invested by the project
investor. In order to meet regulations on environmental sanitary, the wastewater shall be collected
to local treatment plant and shall meet Class B in accordance TCVN 5945-1995 before discharging
to the environment. After the interceptor and Nhieu Loc Thi Nghe wastewater treatment plant are
completed, the local treatment plant shall be rehabilitated to wastewater pumping station and
transported wastewater to the main sewer of the city and to Nhieu Loc Thi Nghe WTP.
Regarding industrial zones, the wastewater shall be treated in at the local WTPs invested by
project investors. The wastewater after treatment must meet Class B in accordance with TCVN
5945-1995 before discharging the environment.
The areas having new residential areas are:
- Thu Thiem Residential Area,
- Residential Area of An Phu Ward, along Luong Dinh Cua Street,
- Sport Residential area of An Phu Ward, on the East of Dong Van Cong Street,
- Residential Area of Thanh My Loi Ward (on the West of Dong Van Cong Street),
- Thanh My Loi Cat Lai Residential Area (on the South of the Ring Road no. 2)
d. Central WTPs:
Page 69
In accordance with the Revised Master Plan of District 2, the sewage system is separated.
The wastewater is collected and transported to Nhieu Loc Thi Nghe WTP.
6. Wastewater Discharging Basins
The wastewater discharging basins are divided similar to the rainwater discharge basins.
Regarding the wastewater discharge of the study area, it is possible to classify into 3 types:
- Basins for existing area.
- Basins for new urban areas.
- Basins for wastewater discharge in the future.
The following criteria are used to define areas which are suitable to construct a wastewater
discharge system, i.e.:
- The areas cannot be applied with in-situ treatment methods.
- The areas have completed transport infrastructures.
- The industrial, commercial and administrative areas.
- The planned areas have growth rate of population density at medium and high level (> 150
persons / ha), located in the designed areas.
7. Hydraulic Calculation
The hydraulic calculation is done based on the drainage route identification. Discharge
basins are defined to specify the discharge area which is covered by the sewer. The principle for
route identification and basin division is based on the actual discharge direction and different cells,
which are divided from a basin. From the cells, it is possible to calculate the discharge area and
select the coefficient of coverage, etc. In the feasibility report, the preliminary calculation shall be
made for the new construction and presented in the statement for the basic design.
Calculate the drainage flow in accordance with Manning formula:
Q A xV (m 3 /s)
V
1 2/3 1/2
R x S (m/s)
n
In which:
Q - calculated flow(m3/s)
A - cross-section area of the flow (m2)
V - average flow velocity (m/s)
n - roughness coefficient, depending on the nature of river bed surface
R - Hydraulic radius (m)
S - hydraulic gradient(m/m)
Pipes connected in accordance with water-level measure
Coefficient of non-regulation Kng max: Kng-max=1.2
Coefficient Kh-max = 1.8
Calculated slope imin=1/D(mm) in accordance with TCVN:7957-2008
8. Calculation results of WTP scale.
a. Main sewer route with grade 2.
+ Basin 1 - on the north of Hanoi Highway: The wastewater shall be collected to the
main sewer route with grade 2 as follows:
Page 70
- Sewer 400 on Xuan Thuy Street, connecting with Sewer 500 on Nguyen Van Huong
Street
- Sewer 500 on Nguyen Van Huong Street along Sai Gon River
- Sewer 400, 500 on Thao Dien Street connecting with Sewer 500 on Hanoi Highway.
- Sewer 500 on Hanoi Highway and Sewer 500 on Nguyen Van Huong Street are
connected to the Sewer 1000 on the transport junction from Sai Gon Bridge to Tran Nao Street
+ Basin 2 in Binh An Ward along Tran Nao Street: the wastewater is collected to the
main routes with grade II as follows:
- Sewer 1000, 1200 on Tran Nao Street connecting with the Well G5 on Nhieu Loc
Thi Nghe Interceptor.
+ Basin 3 Thu Thiem Urban area: the sewer network shall collect wastewater to the
local pumping station near Well G7 of the interceptor and then the wastewater shall be pumped to
the local WTP of Thu Thiem Urban Area located nearby Sai Gon river and road on the bank of Sai
Gon River, Binh Trung Tay Ward. The wastewater will be treated preliminary to meet Class B in
the first phase (when the interceptors and Nhieu Loc Thi Nghe WTP are not completed). In a next
phase when Nhieu Loc Thi Nghe WTP is completed, the local WTP shall convey the wastewater
to Nhieu Loc Thi Nghe Interceptor.
+ Basin 4 Residential Area in An Phu Ward along Luong Dinh Cua Street
- The pipeline 500 in An Phu Residential Area with 132 ha connects with pipeline 500,
600 in Nguyen Quy Duc Street (Street no. 5).
- The pipeline 500, 600 in Nguyen Quy Duc Street (Street no. 5) connects with pipeline
600, 800 in Luong Dinh Cua Street.
- The pipeline 600, 800 in Luong Dinh Cua Street connect with the pipeline 1000 in
Tran Hung Dao Street toward Well G5 on Nhieu Loc Thi Nghe Interceptor.
- The pipeline 500 in Nguyen Chi Tho Street connect with the route G9
+ Basin 5 - Sport Center in An Phu Ward (on the east of Dong Van Cong Street): the
wastewater is collected to the pipeline 400, 500 in Dong Van Cong Street, to the pipeline 400,
500 in Sai Gon Long Thanh Dau Giay Expressway.
+ Basin 6: the existing area on the East of Dong Van Cong Street (Inter-provincial
Road 25B): the wastewater is collected to main pipeline 800, 1000 in Nguyen Thi Dinh Street
to the pipeline 1200 on the East Ring Road.
Besides, there are some main routes in the existing residential areas as follows:
- The pipeline 600 in Nguyen Duy Trinh Street connects with the pipeline 800 in
Nguyen Thi Dinh Street.
- The pipeline 600 in Nguyen Van Thinh Street connect with the pipeline 1200 in
Nguyen Thi Dinh Street.
- The pipelines 400, 500 on the main street of Binh Trung Dong Street
+ Basin 7 - Thanh My Loi Residential Area on the West of Dong Van Cong (Interprovincial
Road no 25B): The wastewater is collected to the local treatment plant in residential areas. The
wastewater will be treated preliminary to meet Class B in the first phase (when the interceptors and
Nhieu Loc Thi Nghe WTP are not completed). In a next phase when Nhieu Loc Thi Nghe WTP
is completed, the local WTP shall convey the wastewater to Nhieu Loc Thi Nghe Interceptor.
Page 71
+ Basin 8 - Thanh My Loi Cat Lai Residential area on the South of Ring Road no. 2: the
wastewater from the industrial zone and Cat Lai Port shall be treated in the industrial zone and at
the port in accordance with Class A in TCVN 5945-1995 before discharging to Sai Gon River.
The wastewater from Thanh My Loi Cat Lai Residential Area shall be treated at local
WTPs at the first phase (when the interceptors and Nhieu Loc Thi Nghe WTP are not completed).
In a next phase when Nhieu Loc Thi Nghe WTP is completed, the wastewater shall be conveyed
by the pipeline 1200 on the East Ring Road.
b. Pipeline network with grade 3.
Zoning for investment of sewer network with grade 3: As district 2 is a new urban area of
the city in the developing process, including both existing and new residential area with many
projects for new residential area development. The existing common system should be
rehabilitated. The investment in a separated system will require a huge investment. In order to
implement the project effectively, it is necessary to define the areas for investment, clarify the
responsibilities of the developers in the residential areas and of state budget in association with
World Bank funds for rehabilitation of existing residential areas.
The zoning for investment shall be made according to the existing condition of residential
areas and planning orientation for land use and topography. The areas to be invested with the
pipeline network with grade 3 coincides with the proposed areas for investment with the drainage
system.
The proposed areas for investment by funds of World Bank and State Budget are:
- Basin 1: On the north of Hanoi Highway
- Basin 2: basin along Tran Nao Street
- Basin 6: the existing area on the East of Dong Van Cong Street (Inter-provincial
Road 25B).
Water pumping station: The water pumping stations are constructed to reduce the depth of
pipeline installation and pressure increase to convey water to the WTP. It is estimated to invest in 3
pumping stations.
Station 1is located in Nguyen Van Huong Street and junction at Sai Gon Bridge in Thao
Dien Ward.
Station 2 is located in Nguyen Thi Dinh Street and Nguyen Duy Trinh Street in Binh Trung
Dong Ward.
Station 2 is looted in East Ring Road and in Nguyen Thi Dinh Street.
Regarding location of the pumping stations:
- Select relatively independent positions in the area
- Put in the position between road and discharging sources
- Install underground to reduce pollution and create good view for the city.
9. Scale of the sewage system in District 2.
Table 20. The scale of the sewage system in District 2
No.
I
Area
Thao Dien
Network
Grade 2
Items
Pipeline
- Pipeline 500
- Pipeline 400
Unit
Quantity
7.663
2.836
207
Page 72
No.
Area
Network
Grade 3
Grade 2
II
Nam Thao
Dien
Grade 3
III
Binh Trung
Dong - Binh
Trung Tay Cat lai
Grade 2
Grade 3
Items
facilities
Manhole
- Manhole 500
Unit
point
Quantity
18
pcs
143
- Manhole 400
Pipeline
- Pipeline 300
facilities
Manhole
- Manhole 300
Pipeline
- Pipeline 1000
pcs
56
29.882
point
176
pcs
872
2.199
1.241
m
point
62
6
pcs
44
pcs
26
12.413
point
23
pcs
436
1.623
- Pipeline 1000
1.340
- Pipeline 600
3.190
- Pipeline 500
facilities
Manhole
- Manhole 1200
1.946
m
point
80
30
pcs
34
- Manhole 1000
pcs
26
- Manhole 600
pcs
66
- Manhole 500
Pipeline
- Pipeline 300
pcs
42
41.165
- Pipeline 800
facilities
Manhole
- Manhole 1000
- Manhole 800
Pipeline
- Pipeline 300
facilities
Manhole
- Manhole 300
Pipeline
- Pipeline 1200
Page 73
No.
IV
Area
Other areas
Network
Grade 2
Items
facilities
Manhole
- Manhole 300
Pipeline
- Pipeline 1500
Unit
point
Quantity
102
pcs
1.196
1.679
- Pipeline 1200
3.528
- Pipeline 800
607
- Pipeline 600
1.201
- Pipeline 500
5.985
- Pipeline 400
Manhole
- Manhole 1500
3.740
840
pcs
41
- Manhole 1200
pcs
84
- Manhole 800
pcs
16
- Manhole 600
pcs
30
- Manhole 500
pcs
142
- Manhole 400
pcs
89
station
3.3.4. Priority order for investment in the sewage system.

The priority order for the construction of the sewage system shall be determined based on
the aspect of demand / interest, adverse consequences and limitations of the project in accordance
with the following order. The evaluation criteria for the project is expected to comply with the
order of priority:
1. Demand/ interest:
- Population density is the typical criteria for development of the sewage. The basin
having a higher population density shall be prioritized.
- Areas to be acquired and compensated: the criteria shows the area for compensation
and site clearance as the project is implemented.
- Existing condition of technical infrastructure: The basin having a completed
infrastructure system, convenient for the project development shall be more prioritized.
- Existing condition of flood/ environmental pollution: The basin being flooded or
polluted shall be more prioritized for investment in sewage system.
- Project costs per capita: The basin being flooded or polluted shall be more prioritized for
investment in sewage system.
- Economic/ Administrative Loss due to pollution: the area having many economic and
administrative activities or assets & fixed assets with high value is affected by environmental
pollution.
Page 74
2. Adverse consequences:
- Costs for construction, operation & maintenance: The criteria for the adverse
consequences are shown in the following table. The area having lower costs for construction,
operation & maintenance shall be more prioritized.
Table 21. Evaluation of the priority criteria for the drainage system.
No.
1
Criteria
Basin 1
Basin 2
Basin 6
+ Existing
13,322
7,161
26,287
+ Planning
40,500
25,500
130,500
+ Existing
36
59
43
+ Planning
110
203
215
Population (persons)
Population density: (person/ ha)
Areas to be acquired and

compensated
Existing condition of technical

infrastructure
Flood level
Construction costs x1000.000
152,968
108,062
303,242
Project costs per capita (x 1000.000 vnd/person)

+ Existing
11.481
15.089
11.535
+ Planning to 2020
3.776
4.237
2.323
293,469
195,646
564,869
Economic/ Administrative Loss due

to pollution
Cost for construction &

maintenance
Table 22. Evaluation of the priority criteria for the sewage system with grade 3
No
Criteria
.
1 Population (persons)
Basin 1
Basin 2
Basin 6
+ Existing
13322.4
7161.4
26287.38
+ Planning
40500
25500
130500
+ Existing
36.4
58.7
43.4
+ Planning
110
203
215
Population density: (person/ ha)
Areas to be acquired and compensated
Existing condition of technical infrastructure
Environmental pollution level
170,369
71,250
234,664
Project costs per capita (x 1000.000 vnd/person)
Page 75
No
.
Criteria
Basin 1
Basin 2
Basin 6
+ Existing
12.788
9.949
8.926
+ Planning to 2020
4.206
2.794
1.798
270,679.8
180,453.2
438,350.6
Economic/ Administrative Loss due to

pollution
Cost for construction & maintenance
Table 23. Evaluation of the priority criteria for the sewage system with grade 2
No.
Criteria
Area 1
Area 2
+ Existing
29223.8
40366.28
+ Planning
143140
198200
196,212
230,269
+ Existing
6.71411
5.70450
+ Planning to 2020
1.37077
1.16180
416,674.7
491,283.9
Existing condition of flood/ environmental

pollution
4
5
Project costs per capita (x 1000.000

vnd/person)
Economic/ Administrative Loss due to pollution
Cost for construction & maintenance
Notes:
Basin 1 in Thao Dien Ward.
Basin 2 in Binh An Ward, along Tran Nao Street.
Basin 6 in the existing area on the East of Dong Van Cong Street in Binh Trung
Dong, Binh Trung Tay & Cat Lai Ward
A
1

B
Existing condition of flood/ environmental

pollution
Economic/ Administrative Loss due to

pollution
A
B
A
B
A
B
Less clearance
compensation
Clearance
compensation
Good
Not good
Few
Many
Few
Many
Comments:
The main criteria for project priority are:
Page 76

Existing condition of flood/ environmental pollution
Economic/ Administrative Loss due to pollution
Basis for analyzing the above criteria as proposed by the Consultant in the following
order:
First phase: (First priority)
- Drainage and flood control.
- Projects for construction and rehabilitation of drainage network in Basin 1 and 2..
- Sewage and Environmental sanitary.
- Projects for construction of sewage network with grade 3 at basin 6.
- Projects for construction of sewage network with grade 2 on the East of Dong Van Cong
street.
Second phase: (Second priority)
- Drainage and flood control
- Projects for construction and rehabilitation of drainage network in Basin 1 and 2.
- Sewage and Environmental sanitary.
- Projects for construction of sewage network with grade 3 at Basin 1 &2.
- Projects for construction of sewage network with grade 2 on the East of Dong Van Cong
street.
Refer to the Map of prioritize areas.
Page 77
D A
N VESINH MO
I TR
NG N
C GIAI OAN II / WATER SANITATION STAGE II
A
U T XA
Y DNG MANG L
I THOA
T N
C CA
P II - III TRE
N
A BA
N Q.2 / CONSTRUCTION INVESTMENT DRAINAGE NETWORK L EVEL II-III IN DISTRICT 2
BA
N OPHA
N KHU VC U TIE
N A
U T / PRIORITY REGIONINVESTMENT MAP
QUA
N BNHTHANH
I H
A N
I
IT HAN HA
S OPHA
NKHU
150
PHNG THAOIE
N
T L - S CALE:
1 /10.000
IT HAN HA
2, 0
1, 8
6
40
50
R A
NG HANO
I
11
0
36
2 -4
5
31
80
62
22
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11
0
20
4
18
00
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2 -4
5
11
0
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2
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5
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51
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78
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B N V:
BA
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/ DE VIDE BASI NDRAI NAGE MAP
IQU A
N7
09
Figure 14. Map of prioritize areas.

3.3.5 Household connection
1. General requirements about sewage system in District 2.
In order that the HCMC Environmental Sanitary Project Phase 2 shall have benefits for
residents and beneficiaries, provided that the closed sewage system must be constructed completely
and synchronously. The closed system is presented in the chart as follows:
It is shown in the chart that the HCMC Environmental Sanitary Project Phase 2 is really
effective and treat thoroughly all the wastewater, the works on the system must be invested for
construction synchronously from Sanitary works at households, septic tanks, connecting, collection
Page 78
sewers to WTPs. However, not all the households have suitable sanitary works, then the above chart is
failed to be implemented. Even the households have suitable sanitary works, the chart as stated above
is also not implemented properly.
Therefore, the matter is how to construct works under the sewage system in accordance with
the chart as presented above to collect and treat all the wastewater in District 2 and which funds shall
be spent for implementation of the works as stated-above.
The following chart present about responsibilities and fund for construction of works in the
sewage system in District 2.
2. Connection fees for the households.
Page 79
Table Estimates about connection fees with the sewage system regarding households
Name of the area
Planned
Number of
Number of Connection
number of
existing
poor
fee for a
household
households
households household
in 2020
Connection fee
for the existing
residents
Estimated
connection fee in
accordance with
planning to 2020
Connection fee
for poor
households
Area 1
6680
18750
114,343,978,018
320,965,743,538
134,508,765
Entire are of Thao

Dien Ward
6195
16250
106,046,010,000
278,167,500,000
A part of An Phu
Ward
485
2500
8,297,968,018
42,798,243,538
134,508,765
Area 2
4268
9500
73,059,624,000
162,621,000,000
4268
9500
73,059,624,000
162,621,000,000
9342
22722
150
159,922,377,915
388,955,026,650
2,561,620,326
Entire area of Binh

An Ward
Area 6
17,118,000
Entire area of Binh

Trung Dong
4734
11985
64
81,036,494,237
205,155,681,612
1,094,163,635
A pat of Binh Trung

Tay Ward
3752
5668
68
64,234,977,601
97,031,688,219
1,164,380,259
A part of Thanh My
Loi Ward
253
1696
10
4,333,335,733
29,030,833,405
164,508,056
A part of Cat Lai

Ward
603
3373
10,317,570,344
57,736,823,414
138,568,376
Total
347,325,979,
933
872,541,770,1
88
2,696,129,0
91
(1USD=21.000 VND)
16,539,332
41,549,608
128,387
USD
Page 80
3.4. Plan for site clearance and resettlement.

3.4.1. The scope of site clearance and impacts of resettlement.
The entire project is implemented in the residential areas and existing roads.
During the construction of the project, the work items are equipment & material transport,
excavation and back-filling, pipeline installation, carriage-way reconstruction. The construction
activities may cause provisional land occupation, affecting directly or indirectly the surrounding
residential areas at construction site.
It is expected that the pipeline installation shall be installed under sidewalks, transport roads
or small street to minimize the land occupation and site clearance as well as limit impacts on the
land use right of households. Therefore the project is ranked Type C as there are no impacts and
site clearance & resettlement.
3.4.2. Policies & rights
The Government of Vietnam has issued some laws, decrees and regulations as the legal
basis for land compensation, buying and resettlement. The legal basis are presented as follows:
Decree No. 197/2004/ND-CP dated December 03, 2004 of the Government on
compensation, support and resettlement when land is recovered by the state;
Decree No. 84/2007/ND-CP dated May 25, 2007 of the Government with additional
provisions on issuance of land use right certificates; on land recovery; on exercise of land use
rights; on order and procedures for compensation, assistance and resettlement when the state
recovers land; and on resolution of companies about land.
Circular 06/2007/TT-BTNMT by Ministry of Natural Resources & Environment, guiding
the implementation of a number of articles of the Governments Decree no. 84/2007/ND-CP of
may 25, 2007, additionally stipulating the grant of land use right certificates, recovery of land,
exercise of land use rights, order and procedures for compensation, support and resettlement when
land is recovered by the state, and settlement of land-related complaints
Decree No. 69/2009/ND-CP of August 13, 2009, additionally providing for land use
planning, land prices, land recovery, compensation, support and resettlement
Joint Circular No. 14/2008/TTLT-BTC-BTNMT of the Ministry of Finance and the
Ministry of Natural Resources and Environment guiding a number of articles of Decree No.
84/2007/ND-CP of the Government
Decree no. 188/2004/ND-CP of November 16, 2004, on methods of determining land prices
and price brackets of land of different categories.
Decree No. 123/2007/ND-CP of July 27, 2007, on amendments to Decree 188/2004/ND-CP
of the Government of November 16th, 2004 on price determination methods and price frameworks
for all types of land.
Circular No. 145/2007/TT-BTC dated December 06, 2007 of the Ministry of Finance
providing guidelines for implementation of Decree 188/2004/ND-CP dated Government dated 16
November 2004
Decree No. 182/2004/ND-CP of October 29, 2004, on handling of administrative violations
in the land domain
Page 81
3.4.3. Public consultation and claim settlement mechanism

a. Objectives of stakeholder consultation meetings
The objectives of the stakeholder consultation meetings are to inform affected people about
the nature of the project and its components, the project's objectives, the role of technical support
and consulting experts, to present about the impacts of the project. Especially the concerns and
suggestions of the affected objects shall be noted, regardless any aspects of the project.
b. Participants
Participants in the stakeholder consultation meetings are residents from the towns and
communes in the project area, whose representatives are leaders of residential quarters, chairmen of
wards some objects who are directly affected by the project. The list of objects likely affected by
land occupation of the project shall be prepared after a survey about the environmental impact
assessment of experts and local authorities. The stakeholder consultation meetings shall guarantee
the participation of all the objects.
Among participants of the stakeholder consultation meetings, the vulnerable objects and
women are priotized.
c. Claim settlement
Project Management Unit is ready to receive any complaints, grievances or claims for
compensation relating to the use and provisional occupancy of land during construction of the
project items. Detailed procedures for filing complaints and requests are publicized in the media, in
order to ensure that the affected objects implement their rights. The Project Management Unit and
local authority agencies will try to resolve the complaints at commune level through stakeholder
consultation and involvement of social and resettlement experts.
3.4.4. Cost estimate and budget for compensation
The HCMC Environmental Sanitary Project Phase 2 is ranked Type C without impact and
site clearance & resettlement as there are no impacts and requirements about site clearance and
resettlement. The construction activities may have provisional land occupation in only pavement
and carriage way. Therefore, no costs for compensation and resettlement would be spent for the
project. The other costs related to the provisional land occupation during the construction shall be
included in the contingency costs for excavation work and back-filling and in the overhead costs.
3.5. Environment.
3.5.1. Standards and criteria.
- The Law on Environmental Protection, passed on November 29, 2005, by the XIth
National Assembly of the Socialist Republic of Vietnam at its 8th session.
- The Law on Water Resources, passed on May 29, 1998 by the National Assembly of the
Socialist Republic of Vietnam and promulgated by the President on June 1, 1998.
- Construction Law of the Socialist Republic of Vietnam no. 16/2003/QH11 dated
November 26, 2003;
- Decree 29/2011/ND-CP dated 18/4/2011 of the Government concerns strategic
environmental assessments, environmental impact reports and environmental protection
commitments;
- Decree No. 71/2005/ND-CP of June 6, 2005, on the management of investment in the
construction of peculiar works;
Page 82
- Decree 81/2006/N-CP. Decree 81/2006/ND-CP of August 9, 2006 on sanctioning of

administrative violations in the domain of environmental protection;
- Decree no. 04/2007N-CP dated 08/1/2007 of the Government on Amending and
supplementing a number of articles of the Government's Decree No. 67/2003/N-CP was issued on
13th June 2093 by the Government on environmental protection charges for waste water;
- Circular No. 26/2011/TT-BTNMT detailing a number of articles of the Governments
Decree No. 29/2011/ND-CP of 8 April 2011 on strategic environmental assessment, environmental
impact assessment and environmental protection commitment;
- Circular 05/2005/TT-BTNMT dated July 22, 2005, providing guidelines for implementing
Government's Decree 34/2005/ND-CP dated 17/3/2005 regulating administrative penalties for
pollution of water resources;
- Joint circular No. 106/2007/TTLT-BTC-BTNMT of September 06, 2007 amending and
supplementing their joint circular no. 125/2003/TTLT-BTC-BTNMT of December 18, 2003, which
guides the implementation of The Governments Decree No. 67/2003/ND-CP of June 13, 2003, on
environmental protection charge for wastewater;
- Circular no. 13/2007/TT-BXD of December 31, 2007 by Ministry of Construction guiding
some articles of the Governments Decree no. 59/2007/N-CP of April 9, 2007 on the solid waste
management;
- Circular No. 12/2011/TT-BTNMT of April 14, 2011 by the Ministry of Natural Resources
& Environment stipulating hazardous waste management
-Joint circular No. 106/2007/TTLT-BTC-BTNMT of September 06, 2007 amending and
supplementing their joint circular no. 125/2003/TTLT-BTC-BTNMT of December 18, 2003, which
guides the implementation of The Governments Decree No. 67/2003/ND-CP of June 13, 2003, on
environmental protection charge for wastewater
- Circular 16/2009/TT-BTNMT dated October 7, 2009 by the Ministry of Natural Resources
& environment, prescribing the national technical regulation on environment
- Decision No. 22/2006/QD-BTNMT of December 18, 2006, on the compulsory application
of Vietnam Environmental Standards.
- Decision No 16/2008/QD-BTNMT dated 31/12/2008 of the Ministry of Natural Resource
and Environment on promulgating of National Technical Regulation on environment
- Decision No 04/2008/QD-BTNMT Ministry of Natural Resources and Environment date
18/07/2008 on the issuance of national technical regulations for the Environment;
- Decision No. 123/1998/QD-TTg of July 10, 1998 ratifying the readjusted overall planning
of Ho Chi Minh City till the year 2020
- Decision No. 752/QD-TTg dated 19/6/2001 by the Prime Minister on approval of Master
plan for drainage and sewerage of HCMC to year 2020;
- QCVN 26:2010/BTNMT National Technical Regulation on Noise;
- QCVN 27:2010/BTNMT National Technical Regulation on Vibration;
- QCVN 14:2008/BTNMT - National Technical Regulation on domestic wastewater;
- QCVN 05:2009/BTNMT - National Technical Regulation on ambient air quality;
- QCVN 06:2009/BTNMT - National technical regulation on hazardous substances ambient
air;
- QCVN 08:2008/BTNMT - National technical regulation on surface water quality;
- QCVN 09:2008/BTNMT - National technical regulation on underground water quality;
Page 83
- QCVN 03:2008/BTNMT National technical regulation on the allowable limits of heavy

metals in the soils
3.5.2. Environmental protection measures
a. Environmental management plant
According to the Law on Environmental Protection of Vietnam, the PMU and contractors
for construction and operation must implement an Environmental Management Plan in the
construction and operation phases.
The objectives of an Environmental Management Plan for the project are to provide
guidance for the project to comply with environmental regulations. An Environmental Management
Program shall include management & monitoring program & report on limiting impacts on
environment; organization for implementation of the Environmental Management Program and
other counter-measures in case of incidents.
b. Environmental monitoring program and report on environmental monitoring
The objective of the monitoring program and report on environmental monitoring is to
collect information about environmental quality change continuously due to the implementation of
the project and detect adverse impacts on the environment of the project, then propose counter
measures to minimize environmental pollution in 3 phases, i.e. site clearance, construction and
operation
c. Construction phase
The parameters of noise, dust, polluting odor will be monitored at the location which is
assumed to be the most affected (the construction site of WTPs) every two months during the
construction time in 24 months;
The waste collection and earthwork construction, soil erosion and measures to ensure safety
shall be monitored once per month for the construction time in 24 months. The wastes of
construction workers also need to be monitored to collect and treat properly.
The Report on environmental monitoring in the construction phase is prepared by the
construction contractor and submitted to the state environmental management agencies quarterly or
upon the request in a certain time.
d. Operation phase
In the operation phase, the monitoring of the water quality after treatment shall be done one
per month with basis parameters (criteria of Group B in accordance with TCVN 5945:2005 and
QCVN 14:2008/BTNMT) .
The monitoring of settlement in the area and surrounding areas of the WTP shall be done
annually to ensure the structural quality. It is necessary to check the structure of works.
The monitoring of noise criteria will be performed at WTP with the frequency of every 3
months.
Air quality is checked monthly in the pumping stations, WTP in order to have solutions in
emergency cases such as too polluted odors or other problems. The sewer network should be check
regularly to limit water leakage or loss .
The Report on environmental monitoring in the operation phase shall be prepared by the
project operation agencies and submitted to the state environmental management agencies yearly or
upon the request in a certain time.
Page 84
Table 24. Schedule of environmental report

Phases
Implementation
The report on Environmental

Impact Assessment (in the
project preparation phase)
Monitoring in the construction
phase
Monitoring in the operation
phase
Employer and
Consultant
Contractor
Project operation
agency
State
management
agencies
Time
DONRE
Completed before
the detailed
design
Employer and
state management
agencies
Employer and
state management
agencies
Quarterly
Yearly
3.5.3 Organization
Responsibilities of organizations and units involved in the assessment process and
environmental monitoring are presented in the following table:
Table 25. Roles & responsibilities of involved organizations and units.
Roles
Implementing agencies
HCMC PC Managing
agency of the Employer
HCMC Steering Center of the
Urban
Flood
Control
Program - Employer
HCMC
Environmental
Sanitary Project Management
Unit (PMU)
Environmental staff of PMU
Environmental Consultant
Contractor
Project operation agency
Function
Coordinate and manage the project, including instruction and
supervision about the project
Be responsible for management & implementation of the
Environmental Management Plan
Be responsible for implementation of daily work of the project,
including checking and supervision of Environmental
Management Plan under the Project
Be responsible for training and support for Contractor about
environmental matters as well as checking and monitoring the
implementation in order to ensure the strict compliance with the
procedures.
Preparation of the Environmental Management Plan
Construction in accordance with measures
- Apply mitigation measures in construction
- Ensure safety measures for workers and local residents during
construction
- Follow the safety measures of Vietnam
Operate the project and implement measures for management,
environmental monitoring and reports on monitoring results to
the state management agencies.
Monitoring state agencies

Department
of
Natural
To be responsible for ensuring the compliance of the
Resources & Environment environmental management and protection under by the
Environmental Management Environmental Protection Law, the Governments Decree
Department
80/ND-CP 08/TT-BTN & Circular 08/TT-BTN&MT. Regarding
Page 85
Roles
Internal monitor
Independent monitor
Function
the Water Supply Project in District 2, HCMC, it is a project
with Grade II, the monitoring report and implementation of
Environmental Management Plan will be evaluated and
approved by Environmental Management Department in
accordance with regulations on environmental management and
protection.
Super the Contractor during the construction, including
implementation of environmental management actives in the
environmental action plan.
Monitor the implementation of Environmental Management Plan
independently
Page 86
CHAPTER IV. TOTAL INVESTMENT COST, CAPTIAL SOURCE ALLOCATION AND

FINANCIAL PLAN
4.1. Total investment cost
4.1.1. Basis for total investment cost
Based on the Government Decree No. 112/2009/ND-CP on management of investment and
construction costs issued on 14, December 2009.
Based on the circular guiding on preparation and management on work construction
investment project cost No. 04/2010/TT-BXD dated 26 May, 2010 by the Ministry of Construction.
Based on the cost estimate norm of basic construction accompanying the document no.
1776/BXD-VP dated 16 August, 2007 of the Ministry of Construction on announcement of the
work construction cost estimate norm construction part.
Based on the cost estimates of specialized power lines installation according to the Decision
No. 6061/2008/QD-BCT dated 14 November, 2008 of the Ministry of Trade and Industry.
Based on the cost estimates of specialized substation installations accompanying with
Decision No. 6060/2008/QD-BCT dated 14 November, 2008 of Trade and Industry Ministry.
Based on the basic construction unit price of Ho Chi Minh City issued with the document
no. 1299/SXD-QLKTXD dated 29 February, 2008.
Based on basic construction unit price of specialized power lines and transformer station
according to the document no. 7606/BCT-NL dated 05 August, 2009 by the Ministry of Trade and
Industry.
Based on the Decision no. 10505/SXD-QLKTXD dated 28 December 2010 of Ho Chi Minh
City Construction Department guiding on adjustment of work cost estimates according to the
minimum wage from 01 January, 2010.
Letter no. 9427/SXD-QLKTXD dated 05 December, 2011 of Ho Chi Minh City
Construction Department guiding the adjustment on construction cost estimates in HCMC under
the provisions of the decree no. 108/2010/ND -CP and decree no. 70/2011/ND-CP of the
Government on the minimum wage.
Based on the Decision no. 437/QD-SGTCC dated 20 February, 2008 of Ho Chi Minh city
Transportation and Public Works Department on approval of average transportation distance from
the quarries in the province of Binh Duong, Dong Nai to every districts of Ho Chi Minh city.
Freight of goods transportation by car in accordance with the decision no. 89/2000/QD BVGCP dated 13 November, 2000.
To be applied by the rate of work construction investment rate in 2010 issued by Decision
dated 22 March, 2011 by the Ministry of Construction.
Based on the Decision no. 35/2010/QD-UBND dated 28 May, 2010 of Ho Chi Minh City
People's Committee issued regulations on compensation, assistance and resettlement when the
State recovers land in the City Ho Chi Minh City.
Compensation rates for land is taken by decision no.102/2009/QD-UBND dated 24
December 2009 Ho Chi Minh City People's Committee on promulgating price of all land kinds in
Page 87
Ho Chi Minh City, unit price of residential land is referred from land compensation unit price of
Tham Luong - Ben Cat waste water treatment plant.
Based on the Circular guiding preparation and management of work construction
investment project no. 04/2010/TT-BXD on dated 26 May, 2010 by the Ministry of Construction.
Based on the norm of the project management cost and work construction investment
consultant cost issued together with document no. 957/2009/Q-BXD dated 29 September, 2009
by the Ministry of Construction.
Based on the Decision no. 33/2004/QD-BTC dated 12 April, 2004 of Ministry of Finance
on promulgating rules and insurance premiums for construction, installation
Based on the Circular dated no.129/2008/TT-BTC dated 26 December, 2008 guiding
Decree no. 123/2008/ND-CP dated 05 December, 2008 of the Government detailing and guiding
the implementation a number of articles of the Law on Valued Added Tax (VAT).
Based on the Circular no. 19/2011/QD-BTC dated 14 February, 2011 of the Ministry of
Finance guiding the settlement of completed projects funded by the States budget.
Based on the Letter no. 410/BXD-VP dated 31 March, 2010 of the Ministry of Construction
promulgating construction price index of Quarter 4, year 2009
Based on the Circular no.109/2000/TT-BTC dated 13 November, 2000 of the Ministry of
Finance guiding the collection, payment and use of investment appraisal fee.
Calculated by the circular guiding preparation and management of work construction
investment project cost no. 04/2010/TT-BXD dated 26 May, 2010 by the Ministry of Construction.
Based on the Decision no. 410/QD-BXD dated 31 March, 2010 of the Ministry of
Construction on announcement of construction price index quarter 4/2009 and year 2009.
Based on the Decision no.196/QD-BXD dated 23 February, 2011 of the Ministry of
Construction on announcement of construction price index of Quarter 4/2010 and year 2010.
Based on the Decision no.950/QD-BXD dated 31October, 2011 of the Ministry of
Construction announcing the construction price index of Quarter 1,2,3/2011 and year 2011.
Currency and exchange rate: The estimates will be calculated with Vietnam dong then
converted into USD at the exchange rate issued by the State Bank of Vietnam at present time (April
2013): 1USD = 21,000 VN.
4.1.2. Total investment cost.
Table: .... Summary of work construction cost estimate

No
Description
Cost after tax
CONSTRUCTION COST
1,737,551,000,000
Construction cost of main works
1,737,550,629,164
II
EQUIPMENT COST
III
PROJECT MANAGEMENT COST (Mx GXDTT)
12,760,000,000
IV
CONSULTANTCY COST FOR CONSTRUCTION

INVESTMENT
58,699,000,000
Cost of investment project preparation
8,242,172,730
2,496,483,707
Page 88
Cost of investigation for investment project preparation
3,058,727,664
Cost of investigation for construction drawings design
17,606,223,000
Cost of construction drawing design
18,408,690,689
Cost of appraisal for efficiency & feasibility of the

project
272,692,894
Cost of appraisal for construction drawings
689,588,157
Cost of appraisal for total cost estimate
659,909,679
Cost of Contractor selection
472,613,771
Cost of selection for equipment purchasing Contractor
18,091,569
10
Cost of construction supervision
11
Supervision cost for equipment installation
49,246,982
12
Consultant cost for Environment Impact Assessment

(EIA) report preparation
248,740,000
13
Cost for environment protection activities during the

construction and operation
326,640,000
14
Bomb and mine detecting and destroying cost
2,000,000,000
15
Cost for traffic assurance during the construction
3,840,744,980
OTHER COSTS
Fee for appraisal of work construction investment

project
50,000,000
Fee for construction drawing design
108,982,305
Fee for appraisal of total cost estimate
114,000,000
Fee for appraisal bidding results
30,000,000
Audit cost
2,466,542,012
Fee for appraisal, approval and final payment
1,563,896,073
Fee for work assurance
8,728,964,009
VI
COST FOR SITE CLEARANE COMPENSATION
4,469,445,384
VII
CONTINGENCY COST
Contingency due to arisen quantity (10%)
Contingency due to price escalation
VII
TOTAL INVESTMENT COST
8,550,486,646
13,062,000,000
889,774,000,000
183,478,361,811
706,295,829,083
2,724,557,618,114
4.2. Capital sources.

4.2.1. Capital sources
Investment capital for the project is executed by two different sources: ODA capital funded
by the World Bank and counterpart fund of the citys People Committee. ODA funded by the World
Bank shall be used for construction and equipment installation. Counterpart fund of the citys
People's Committee shall be used for investment preparation, site clearance and compensation and
all kinds of tax. Accordingly, the rate of investment capital out of total investment is shown in
Table 2.
Page 89
The allocation of aforesaid investment rate shows that works of construction and
installation, procurement of equipment shall be under the World Bank's ODA, the counterpart fund
of the city People's Committee shall be for the investment preparation, site clearance and
compensation. Particularly, VAT which shall be incorporated in domestic capital is appropriate
because according to the Circular No. 41/2002/TT-BTC dated 03May, 2002 of the Ministry of
Finance, the preferential ODA funded project Owner allocated by the State budget will be refunded
the VAT paid for purchasing goods. On the other hand, the ODA funded project Owner who is
approved to be allocated with counterpart fund by the competent authorities will be made in the
form of revenues and expenditures including VAT. Thus, the category "VAT" allocated in the
domestic capital is suitable.
4.2.2. Plan for capital source allocation
Table: .... Allocation of capital to be used
No
Description
Construction cost
II
Equipment cost
III
Cost after tax

1,737,551,000,000
WB
8,242,172,730
Budget
Project management cost
12,760,000,000
Budget
IV
Consultant cost for construction investment
58,699,000,000
Budget
Other costs
13,062,000,000
Budget
VI
Cost for site clearance and compensation
4,469,445,384
Budget
VII
Contingency cost
889,774,000,000
Budget
Contingency due to arisen quantity (10%)
Contingency due to price escalation

Total cost
183,478,361,811
706,295,829,083
2,724,557,618,114
Budget
WB
Table of capital allocation

WB
Budget
Total
Amount
2,443,846,829,0
83
280,710,789,0
31
2,724,557,618,1
14
USD
116,373,659
13,367,180
143,312,891
EUR
81,461,561
9,357,026
100,319,024
Rate
89.70%
10.30%
100
4.2.3. Distribution of investment period

No
Year
Description
2013 -2014
Preparation work for investment
2015
Construction of waste water and rain water collection system in

the area of Binh Trung Dong- Binh Trung Tay- Cat Lai +
Connection
2016
Page 90
Thao Dien area

4

Nam Thao Dien area
2017
Table : Structure of capital using in each year

Unit: billion dong
Year
Cost
of
Project
constructio
managemen
n
&
t cost
Equipment
Other
costs
Consultant
cost
for
investment
construction
Contingenc
y due to
arisen
quantity
Contingenc
y due to
Total
price
escalation
2015
943,80
6,90
7,12
31,73
98,96
299,44
1.387,9
5
2016
489,14
3,58
3,69
16,45
51,29
248,13
812,27
2017
312,85
2,29
2,36
10,52
32,80
225,82
586,64
1.745,79
12,76
13,17
58,70
183,04
773,40
2.786,8
6
4.3. Financial mechanism

4.3.1. Financial mechanism of World Bank for Vietnam
Loan currency: USD
Interest rate for Vietnam borrowing: 0%
Loan period: 10 years (starting calculation from handover date)
4.3.2. Financial mechanism of Vietnam for the project Owner
According to the current regulations of the Government of Vietnam, the welfare service
projects such as construction of infrastructure for drainage and waste water treatment system shall
be carried out under the policy of complete assignment to the project owner (circular no.
108/2003/TT-BTC dated 7 November, 2003 of the Ministry of Finance (MOF)). The State Bank of
Vietnam (SBV) on behalf of the Government of Vietnam will borrow the preferential credit loans
of the World Bank and consider that it is the government budget to be allocated for.
The World Bank loan shall be balanced and paid by the Government (represented by the
MOF) under credit conditions of the World Bank
4.3.2.Financial conditions
According to the current regulations of the Government of Vietnam, the welfare service
projects such as construction of infrastructure for sewage and waste water treatment system shall
be carried out under the policy of complete assignment to the project owner (circular no.
108/2003/TT-BTC dated 7 November, 2003 of the Ministry of Finance (MOF)). The State Bank of
Vietnam (SBV) on behalf of the Government of Vietnam allocates fund to the project Owner
through State Treasury.
However, each project will have different financial conditions especially projects for urban
areas from grade V or more. These urban areas have difficult economic conditions. Their ability to
accumulate capital for the annual debt payment is hard and limited. On the other hand, sewage
charge under the provisions of Decree No. 88/2007/ND-CP dated 28 May, 2007 regarding the
Page 91
Urban and Industrial Zone sewage of the Government has clearly stated that the minimum sewage
charge is by 10 % of clean water supply. However, due to the high cost of annual operation
management and low revenues from sewage charge leading the fact that expense is higher than
revenue. Therefore, cost from local budget is taken to support the operation management of the
system, this is especially difficult for the poor localities. Therefore, for this project, the Consultant
proposes a special financial condition for the project to ensure the work management unit can later
afford the cost of annual operation management, detailed as below.
In spreadsheet of financial model, the cost of fixed assets depreciation has still been
calculated so that the project owner can master the assets as well as depreciation of the work.
However, if the calculation is for total fixed asset depreciation, the cost of sewage will be very
high, thus only a part of total depreciation incurred by the project is calculated. The question is how
many percent out of total depreciation of fixed assets will be calculated, this will be clearly stated
in the calculation of sewage charge.
4.4. Calculation of sewage charge
4.4.1. Basis for calculation
Alternative for sewage charge collection will be calculated according to price structure for
sewage service. Accordingly, the determination of sewage charge is aimed to: recover cost for
operation management of the sewage system and there will have a part devoted to construction,
major repair of works on the system. The calculation alternative for sewage charge is presented
below.
Calculation of fixed assets depreciation for sewage works.
According to Decision No.206/2003/QD-BTC stating that all fixed assets including fixed
assets invested by the State shall be calculated and depreciation shall be calculated on business
expenses. Calculated depreciation shall be used for the upgrade and major repairs for work over the
life cycle of the project.
Also in accordance with this Decision, the calculation time for depreciation of all different
fixed assets has relative long variation, accordingly:
Plant and equipment:
5-12 year
Storage tank, yard and road: 5-20 year

Reinforced housing:
25-50 year
Pipeline, channel:
6-30 year
Therefore, the shorter the depreciation period, the higher the price but it also depend on the
actual quality of the work to calculate the depreciation time appropriately. On the other hand, the
depreciation period depends on the life cycle of the project. In theory, the project's life cycle is
assumed to be shorter than the actual one with aim to calculate factors of finance, material cost, and
depreciation according to the most adverse circumstance. Besides, for ODA funded project by the
World Bank, the World Bank has guidelines to calculate by of the project life cycle of 20 years.
Therefore with this project, 03 kinds of fixed assets are divided and depreciation time is
calculated as follows:
Construction works (housing, dispatching part covering 20 years
the work, work items relating to construction etc.)
Work items relating to pipeline, channel etc
20 years
Plant and equipment etc
10 years
Page 92
Therefore, the depreciation is mandatory and must be calculated into the cost of wastewater
treatment. However, when calculating depreciation in the cost, the cost of the wastewater treatment
will be higher, but in reality, the projects of sewage and wastewater treatment system in Vietnam
are not currently profitable and popular. Therefore, people havent had a habit of paying sewage
charge as calculated cost of the project. Normally payable sewage charge in fact is much lower
than theoretical calculations. For example, every year Hanoi has to cover losses of about 20-40% of
the total cost of sewage system operation management because sewage charge collection is lower
than calculation.
Thus, the calculation of depreciation into sewage cost is mandatory. The question is, for the
environmental sanitary sewage project in Vietnam, what is appropriate depreciation rate? which
can ensure the project will be effective in both economic and financial aspect and the project
owner has annual the repair and maintenance of the system but also ensure suitability for the
difficult and poor economic conditions of the locality having project.
For this project, we will provide the different depreciation rate and proposal for the rate of
depreciation of 40% as the option. This is a reasonable rate for a particular urban like Ho Chi Minh
City, but this rate also ensure that the project will get profit and economical and financial
effectiveness. The other rates will also be calculated and the comparison will be presented in
sensitivity analysis Section.
If the depreciation rate is higher, the sewage charge will be more. However, the depreciation
rate must be large enough so that the project has financial productivity. Therefore, for this project,
the depreciation rate of 40% will be correspondent with a relatively high level of sewage charge
(average sewage charge is 6000 dong/1m3). As a result, assistance from the Government of
Vietnam and state budget for the production activity of the work is very important and consistent
with the actual situation of the current sewage charge collection in Vietnam.
The cost of operation and maintenance of sewage and wastewater collection system.
The determination of sewage and collection charge will affect the projected sewage charge.
Specifically in Table 4 (in Appendix).
In the table above, we plan to calculate depreciation only with one certain rate. We know
that depreciation is mandatory to be calculated in the cost forming price. The question is what rate
for depreciation. Because depreciation is calculated with rate of 100% of depreciation value, the
price of sewage and waste water collection will be very high. And if the cost is high, sewage charge
must be high too to ensure profit for the project. Therefore, in this project we calculate the
depreciation rate of 25%.
4.5.3. Determination of sewage charge
Price structure for sewage service:
Based on price factors of waste water production, maintenance and operation.
Based on common principle determining sewage charge mentioned above.
Based on Circular no. 17/2005/TT-BXD dated 1November, 2005 of the Ministry of
Construction guiding methods of preparation and management of estimated price of urban welfare
service.
Sewage service structure is described in the table as below:
Chemical,
material
power,
Operation
salary
and
additional Direct
cost
for
operation- Direct cost
maintenance and waste water
maintenance treatment
Sewage
charge
Page 93
Production tools
Construction material
Operation
salary
and
maintenance Direct
cost
of
operationmaintenance of the network
Motorbike, production tools

Management and assistant cost
Management
cost
Insurance, shift meal and other costs

Net profit
Profit before
tax
Enterprise income tax

Depreciation
Determination of sewage charge:
The above table shows drainage, sewerage charge should not only ensure the cost of
management and operation but also satisfy the guaranteed profits, tax payment and depreciation
calculation. The cost of operation and maintenance, calculation method of depreciation and
depreciation rates have been presented in the sections above. The problem of tax and profit
calculated in sewage charge is defined as follows:
Sewage charge was calculated at 2012 and started in production and operation of the
system.
Charge for domestic waste water, small scale production, public and service should be
calculated by % rate of average sewage charge.
The sewage charge calculated below is average sewage charge to be applied for every
discharging objects.
As stipulated in the Circular no. 17/2005/TT-BXD dated 01 November, 2005 of the
Ministry of Construction, the norm interest rate is chosen by 10% of direct production and general
administration cost.
As stipulated in the Decree no. 35/2002/ND-CP dated 03/29/2002 of the Government on
sectors benefited with investment preferential (subject to List A), income tax for special services
such as sewage and wastewater treatment system is taken by 20% of profit before tax.
From the basis above, sewage charge is proposed as the table below:
No
Description
Unit
Amount
Direct cost
Power cost
VND/m3
99,48
Chemical cost
VND/m3
Labor cost
VND/m3
165,8
Maintenance and small repair cost
VND/m3
605,74
Subtotal I
II
Management cost
General administration cost
871,02
VND/m3
109,42
Page 94
No
Description
Unit
Total II
Amount
109,42
III
Depreciation of fixed assets

12114,97
Total depreciation amount of fixed assets (at the

first year calculated with depreciation)
VND/m3
Depreciation rate to be proposed
0,53
4845,98
Depreciation amount calculated in the price of

waste water production
VND/m3
Subtotal III
4845,98
IV
Norm interest and Enterprise income tax
Norm interest = 10%*(I+II) profit before tax
VND/m3
98,04
Enterprise income tax (20%* norm interest)
VND/m3
19,61
Subtotal IV
117,65
Proposed sewage charge (round up)
VND/m3
6000
Therefore, average sewage charge at the moment of 2013-starting year of the project is
6000 VND/1m3. This charge will totally satisfy the cost of operation, maintenance, profit, tax
payment and a part of the depreciation to be deducted for the re-investment and major repair of
facilities on the sewage system.
The table is for defining average sewage charge, however in the project area there are many
different discharging objects, the determination of particular sewage charge for each discharging
subject is very important especially for domestic waste water discharging object (accounting for the
largest proportion), and the basis for determining sewage charge for each discharging object is as
follows:
The determination of sewage charge for each discharging object is aimed to collect sewage
charge easily during the operation.
K coefficient is determined based rate between average selling price of clean water and
clean water selling price of each different using object.
Sewage charge is calculated at the moment when the work is started being put into use in
2012.
% rate of waste water discharging object is taken by % rate of clean water using object.
No
1
2
3
4
Waste water discharging K coefficient compared with

% rate
object
average sewage charge
Domestic
Administrative agencies
Trade and service
Small scale production
Total
0.76
1.30
1.50
1.40
65.00
5.00
20.00
10.00
100.00
Thus sewage charge for domestic waste water discharging object is the lowest with only
3,900 VN/1 m3 of waste water at the time of 2013
Sewage charge increase schedule.
Page 95
The identification of sewage charge increase schedule is aimed to forecast sewage charge
expected in the next year in order to calculate the financial and economic model accurately, and
make predictions for project owners as well as discharging objects of sewage charge to be paid in
the following years.
As mentioned above, sewage charge is a new issue in Vietnam, especially when the sewage
charge is rather high (for this project). Therefore, assistance from the Government and the state
budget for the maintenance and operation of the sewage system is every important. With
depreciation rate of only 40%, but the result shows relatively high sewage charge (4500
dong/1m3). Therefore in the early years of production, it should have support from the state budget
and need to gradually increase sewage charge following a certain schedule.
Schedule for sewage charge is planned to increase once a year, this is only the plan of the
Consultant, in fact sewage charge will be decided to increase depending on the project owners,
management agencies of and actual sewage works and actual conditions during the operation as
well as the actual economic conditions of the people in the project area.
The table of sewage charge increase schedule is presented in the Appendix.
Page 96
CHAPTER V. MANAGEMENT OF PERFORMANCE AND OPERATION OF THE

PROJECT
5.1. Main data on the agency performing the project
HCMC Environmental Sanitation Project -phase 2 is owned by the Ho Chi Minh Citys
Department of Transport. HCMC Environmental Sanitation Project Management Board is the
representative of the Employer to directly implement the project.
Project Management Unit founded on the basis of HCMC Environmental Sanitation Project
Management Board (NL-TN basin) is the unit who successfully implemented HCMC
Environmental Sanitation Project - phase 1 and is currently performing the acceptance, handover
and final payment for the work. Because HCMC Environmental Sanitation Project -phase 2 is
continued from the phase 1, therefore, this will be a significant advantage for human resources who
have grasped and understood the project from the outset so there are many advantages in
implementing HCMC Environmental Sanitation Project -phase 2.
Project Management Unit is a unit under the Department of Transport, therefore resources
from other units under the Department of Transport can be mobilized for the solution to all contents
related to the project for the purpose of ensuring successful implementation of the project.
The consultants, the contractors implementing the project will be selected through an
international bidding to select the most qualified organizations with the optimal technical measures
and reasonable price.
5.2. Project implementation management
5.2.1. Organization of project implementation management
1. Organization method for project implementation management
Ho Chi Minh City People's Committee has established the HCMC Environmental
Sanitation PMU (hereinafter referred to as the PMU) under the Department of Transport playing a
role as the Employer of HCMC Environmental Sanitation Project -phase 2 according to the
Decision no. 4422/TB-VP dated 19 August, 2013.
Project Management Unit consists of in charge officers whose extensive experience in
management and direct operation of ODA projects and full capacity to perform the tasks of the
Project Owner according to the prevail regulations.
2. Generalization of working mechanism between Ministries, Sectors in project
management
The Government of Vietnam approved by the Prime Minister to direct all ministries and
governmental agencies with the specific functions and duties.
Ministry of Planning and Investment is the leading agency to help the Prime Minister to
collect the opinions of the ministries, sectors concerned and the local authorities, strengthen and
submit the Prime Minister for approval of the Investment Report for the projects and annual
investment plans.
The Ministry of Finance is responsible for issuing guidance for financial mechanism of the
project before the sponsor agreement is signed. The Ministry will review, consider and express the
agreement in writing to allow the withdrawal of capital from donors to cover the cost of the project
at the request of the Project Management Unit. The Ministry will also lead to monitor and approve
the balance after the project is completed.
Page 97
The Government of Vietnam

State Bank, Ministries, Sectors
HCM citys People Committee

HCM citys ministries, sectors
WB
PMU
Contractors
State Bank is assigned to negotiate on behalf of the Government, signed the sponsor
agreement and other legal documents related to the WB.
Ministry of Construction uses his tasks and functions construction management to consider
the technical problems of all project components.
Ministry of Natural Resources and Environment should consider the environmental issues
of the project.
3. Generalization of coordination mechanism between Departments, relevant sectors
of the city in project implementation
Once the loan agreement has been approved and the loan is provided, the Government shall
assign Ho Chi Minh City People's Committee to perform the loan. Ho Chi Minh City People's
Committee shall provide counterpart funds for the project, ensuring that agencies comply with the
obligations specified in the loan agreement. Project Management Office on behalf of Ho Chi Minh
Citys People's Committee to direct the execution and management of the State in accordance with
the laws of ODA funded programs and projects of the City.
Ho Chi Minh City People's Committee issued Decision 4422/QD-UBND dated 19 August,
2013 on the establishment of the Project Management Unit of the citys Environmental Sanitation
project (hereinafter referred to as Project Management Unit) under the Department of Transport,
playing role as HCMC Environmental Sanitation Project -phase 2.
The Department of Transport will directly manage the Project Management Unit and
support it under the implementation of the functions and tasks and simultaneously solve and handle
contents beyond the competence to ensure project progress.
The departments and relevant sectors of the City shall base on the functions and assigned
tasks to assist the Employer in the project's contents as well as arisen issues to help the project
fulfill the schedule as committed with the sponsors.
Project Management Unit shall establish the Project Management Unit to help him organize
project implementation. Project Management Unit shall work directly with contractors, consultants
to implement the project. The disbursements for the project will be disbursed to contractors by
Project Management Unit after acceptance of the work volume in accordance with the current
disbursement procedures.
5.2.2. Role of organizations, functional agencies organizing the project implementation
The project implementation is decentralized from central to local.
Page 98
- The Government: To consider and approve the list of projects, sign framework agreement
between the Government of Vietnam and World Bank. Manage macroeconomic in the management
and use of ODA fund.
- Ministry of Planning & Investment: To be leading agency and chairman in charge of the
implementation of ODA-funded projects such as guiding the governing agency to build a list of
programs and projects required ODA of each agency to make a list of ODA requirement for the
Prime Ministers approval.
- Ministry of Finance: To be official representative for Borrower who is the Government
or Socialist Republic of Vietnam in specific international treaties for ODA fund. Preside over the
affairs of the financial sector such as: promulgating regulations on lending, distribution, financial
condition, financial mechanism etc.
- Relevant Ministries, Sectors: To coordinate with the Ministry of Planning and Investment, give
comments and perform works related to State policy for ODA funded projects. Implementing state
management functions for programs and projects in accordance with the law. Upon request, review
and comment in writing on issues related to programs and projects within stipulated time.
- Ho Chi Minh citys People Committee: To coordinate with the Ministry of Planning and
Investment in submission to the Government on signing of specific international treaties on ODA
for programs and projects in the field of being charged under the provisions of this Regulation;
assure quality and effectively use of ODA to be directly controlled and implemented by the
locality; take responsibility for land acquisition, site clearance and implementation of
compensation resettlement policies for programs and projects in the area District 2 under the
provisions of law.
- Responsibilities of Ho Chi Minh citys Department of Transport-Employer of the Project.
+ Establish, submit for approval; organize compensation, site clearance, receive handover
of construction site; prepare, submit for approval of bidding plan, bidding documents; organize
bidding; bid evaluation, submit bidding results to the city People's Committee for approval.
+ Prepare application for receiving or leasing for the construction of the project works.
+ Coordinate with local authorities to implement the land compensation, crops etc site
clearance and hand over the construction site in accordance with the schedule.
+ Coordinate with relevant agencies to promptly solve the necessary works to be done
during the implementation.
+ Organize final payment, submit final payment of works for approval.
+ Project Management Unit of the city Environmental Sanitation: On behalf of the
Employer to carry out all the work of the project as preparing, submitting, performing works of
investigation, compensation, resettlement, preparing, submitting and evaluating bids, signing and
implementing the contract with successful Bidder according to the current regulations etc.
- Responsibilities of the Consultant
+ Perform works before the investment (investigation, social economic survey, preparation
of work construction investment project, basic design etc).
+ Support or implement works related to bidding documents, bidding evaluation etc.
Page 99
+ Support the Employer in the process of selecting, negotiating, negotiating and contracting
with the parties. The Consultant shall help the Employer in the form of report to the superiors at
every step of implementation.
+ Provide the Contractor all necessary information, perform well their responsibilities in the
construction process.
+ Take part in considering the plan, schedule submitted by the Contractor; propose
measures in favor of the project.
+ Assist the Employer to check and certify the quantity and quality of construction work
items. Timely notify to the Employer any arisen mater regarding the quality of the work.
+ Prepare data, technical documentation, and finance... as a legal basis for the completion of
construction, handover and putting the work into operation.
- Other relevant agencies: To implement the project as scheduled, the HCMC
Environmental Sanitation PMU shall need to coordinate closely with other agencies and
authorities such as: District 2 People's Committee, the Department of Planning and Investment,
Department of Construction, Department of Finance, Department of Natural Resources and
Environment, Committee of the relevant ward and communes etc to timely solve tasks such as
funding, applying for permits of construction, compensation, treatment of underground works, final
payment etc.
5.3. Project implementation schedule
To perform well works of the project, all involved agencies and authorities must participate
and take responsibility for the project.
Under the provisions of Vietnam Law, the project management and implementation shall
comply with the Decree no.12/2009/ND-CP dated 10 February, 2009 and the Decree No.
83/2009/ND-CP dated 15 October, 2009 of the Government on amending and supplementing a
number of articles of Decree No. 12/2009/ND-CP on management of work construction investment
projects.
To implement the project, it can be divided into 03 phases: preparation phase for
investment, investment phase and operation & management phase. For each phase, the
responsibilities of involved parties and agencies involved are different but generally agree on the
content of works to be done.
Table : Project implementation schedule
No
Contents
Completion time
Preparation of work construction investment project
June, 2013
Appraisal from governmental agencies (ministries and sectors August, 2013

under the Government), amendment of the project
Submission to WB for appraisal
October, 2013
Appraisal delegation of WB come to HCM city for survey
November, 2013
Project completion
December, 2013
Letter of project acceptance of WB
January, 2014
Preparation of bidding documents (EPC), submission to WB for March, 2014

approval
Bidding evaluation, approval of bidding results, negotiation for May, 2014

signing the Contract
Page 100
Commencement of construction
September, 2014
10
Training, instructions of operation, commissioning, work January, 2017

handover
5.4. Tender control

5.4.1. Tender procedures and principles
The tender work will be implemented according to Bidding Law No. 61/2005/QH11
November 29, 2005 of the National Assembly of the Socialist Republic of Vietnam on Tender and
Decree no. 85/2009/ND- CP dated 15 October, 2009 of the Government on requirements.
Priorities: No priorities shall be given to the Contractors
Tender Advertisement: Invitation for tender notice must be posted on the tender newspaper
in 3 consecutive periods, on website and other public mass media to facilitate access of interested
individuals and organizations.
Opening and evaluation of bids: Bids shall be opened in public and the guidelines have
been notified in advance. The bid evaluation will comply with the criteria stated in the tender
documents and contracts will be awarded to the contractor to be evaluated with the lowest cost. The
participant contractors shall not be excluded from detailed evaluation due to small and insignificant
deviation.
Evaluation of Qualification: In order to achieve the results of qualification, the contractor
shall satisfy the set requirements.
Standard documents on prequalification and qualification evaluation shall be used. And
Guidelines on implementation of the Law and selection of construction contractor shall be given.
5.4.2. Division of bidding packages
With scale and nature of the ODA World Bank funded project, the division into several
packages will not be done. There will be ... lump sum package for all work items of the project.
List of bidding packages
Implementation period
Some of the major milestones of the project are expected as follows:
- Preparation of investment project, basic design: To be completed in November, 2013
- Preparation of bidding documents: To be completed in March, 2014
- Approval, selection of EPC Contractor: To be completed before July, 2014
- Construction period: from September, 2014 to November, 2018.
Bidding plan:
01. Design Consultant
a. Package name: Contract package 01: Technical design and construction of sewer system
with grade 2 & 3 on the locality of District 2, Ho Chi Minh City.
Description of contract package: Design construction drawings, supply material,
equipment and complete construction of sewer system with grade 2 & 3 in district 2, HCM city.
Bidding form: International Competitive Bidding
Bidding method: 01 document package
Time to be scheduled: 12/2013
Page 101
Upon the project is approved and accepted from relevant authorities, the detailed bidding
documents will be prepared and submitted to WB for review and approval after being submitted to
the Employer.
b. Package name: Contract package 02: Supervision consultant for construction and
equipment installation for sewer system with grade 2 & 3 in District 2, Ho Chi Minh City.
Description of contract package: Supervision for construction and equipment installation
of rain water and waste water collection system class 2 and 3.
Time to be scheduled: 6/2014.
c. Package name: Contract package 03: Appraisal Consultant for construction drawings
of sewer system class 2 and 3 in District 2, Ho Chi Minh City.
Description of contract package: Appraisal of construction drawings of sewer system with
grade 2 & 3 in District 2, Ho Chi Minh City.
02. Installation and construction:
a. Contract package 04: Construction of waste water collection system with grade 3 in
Binh Trung Dong Binh Trung Tay Cat Lai area
Description of contract package: Construction of sewer system with grade 3 in Binh
Trung Dong, Binh Trung Tay, Cat Lai basin
b. Contract package 05: Construction and equipment installation of waste water collection
class 2 in the East of Dong Van Cong road, Binh Trung Dong and Binh Trung Tay wards.
Description of contract package: Construction of sewer system class 2 in the East of
Dong Van Cong road, Binh Trung Dong, Binh Trung Tay, Cat Lai basin
c. Contract package 06: Construction of waste water collection connection system class 2
in District 2, Ho Chi Minh City.
Description of contract package: Construction of pipeline system connected from sewer
network class 2 to the common waste water collection system of the City.
d. Contract package 07: Provision and installation of equipment, training waste water
pumping station operation.
Page 102
Description of contract package: Provision and installation of equipment, training waste

water pumping station operation.
e. Contract package 08: Construction of rain water collection system in the area of Binh
Trung Dong- Binh Trung Tay- Cat Lai.
Description of contract package: Construction of drainage system in Binh Trung Dong,
Binh Trung Tay, Cat Lai basin
Time to be scheduled: 6/2014
f. Contract package 09: Construction of waste water collection system in Thao Dien area.
Description of contract package: Construction of waste water collection system in Thao
Dien area.
g. Contract package 10: Construction and equipment installation of rain water collection
system in Thao Dien area.
Description of contract package: Construction and equipment installation of rain water
collection system in Thao Dien area.
h. Contract package 11: Construction of waste water collection system in Nam Thao Dien
area.
Description of contract package: Construction of waste water collection system in Nam
Thao Dien area
i. Contract package 12: Construction and equipment installation of rain water collection
system in Nam Thao Dien area.
Description of contract package: Construction and equipment installation of rain water
collection system in Nam Thao Dien area.
Bidding method: 01 envelope
k. Contract package 13: Auditing waste water collection system with grade 2 & 3 under
HCMC Environmental Sanitation Project , phase 2.
Description of contract package: Auditing waste water collection system with grade 2 & 3
under HCMC Environmental Sanitation Project , phase 2.
Page 103

Page 104
CHAPTER VI. PROJECT EVALUATION

6.1. Financial evaluation
6.1.1. Financial evaluation.
The financial evaluation is implemented through the items:
Identification of deprecation value regarding fixed assets:
Funds and fix asset
Investment
Depreciation
No.
Items
(million vnd)
time (year)
1
Construction
2,250,521
6
2
Technology
281,315
20
2
Equipment
140,658
20
3
Other assets
140,658
20
Total
2,813,151
Identification of production costs and overhead costs
Depreciation
value
(million vnd)
375,087
14,066
7,033
7,033
Costs for operation and maintenance of drainage & sewage system

No.
Item
Unit
Quantity
Unit price
Component for drainage
I
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Dredging &
maintenance
D300
D400
D500
D600
D800
D1000
D1200
D1500
D1800
D2000
BxH:1.4x1.6
BxH:1.6x1.6
BxH:1.6x2.0
BxH:2.0x2.0
BxH:2x1.6x2.0
BxH:2x2.0x2.0
II
1
2
Equipment
depreciation
Specialized vehicles Package
Auxiliary equipment Package
m
m
m
m
m
m
m
m
m
m
m
m
m
m
m
m
(VND)
Amount
5,761,834,898
0
0
484
858
6,260
6,194
6,607
7,675
0
1,609
0
0
0
701
0
0
1
1
55,120
60,700
74,500
78,740
147,560
162,740
183,100
194,780
210,960
265,140
211,240
240,660
312,760
398,880
625,520
797,760
5,410,173,613
0
0
0
67,558,920
923,685,759
1,008,045,735
1,209,721,559
1,494,936,500
0
426,610,260
0
0
0
279,614,880
0
0
270,508,681
54,101,736
351,661,285
270,508,681
54,101,736
Page 105
Protection
Package
27,050,868
Component for sewage
I
1
1
2
3
4
5
6
7
8
Dredging and
maintenance
D300(*)
D300
D400
D500
D600
D800
D1000
D1200
D1500
II
1
2
3
Equipment
depreciation
Specialized vehicles Package
Auxiliary equipment Package
Protection
Package
m
m
m
m
m
m
m
m
m
27,050,868
9,216,786,685
83,460
0
6,785
15,778
4,608
1,910
3,574
5,246
2,519
1
1
1
Total
55,120
55,120
60,700
74,500
78,740
147,560
162,740
183,100
194,780
8,865,125,400
4,600,315,200
0
411,849,500
1,175,461,000
362,833,920
281,839,600
581,632,760
960,542,600
490,650,820
270,508,681
54,101,736
27,050,868
351,661,285
270,508,681
54,101,736
27,050,868
14,978,621,583
Annual number of employees
Quanti
No.
Working position
ty
1
Managers
1
2
Operation managers
2
3
Operation workers
10
4
Indirect workers
2
5
Total annual salary
Identification of drainage & sewage system.
Salary
(million
Costs
vnd/
(million
month)
vnd)
9
9
7
14
5
50
4
8
972
According to the request of HCMC, a scenario with treatment cost for wastewater is 10% of
water supply price in accordance with Decree no. 25/2013/ND-CP. Regarding finance of the
project, the tariff is not financially sustainable because it does not guarantee for the investment and
operation in HCMC. The roadmap of wastewater tariff proposed in Decree 88/2007/ND-CP and
Decree 25 are shown in the table below
Page 106
Revenue from the wastewater tariff collection
Estimated Revenue offsetting losses

Inflation (% year)
Population growth rate
(year)
Population
2
3
TC
1.5%
350
6000
15%
650000
Items
Year
1
Wastewater tariff (VND)
6,000
6,900
7,935
9,125
10,494
Quantity of the
wastewater (m3/day)
650,000
659,750
669,646
679,691
689,886
227,500
230,913
234,376
237,892
241,460
Revenue (1000vn)
1,365,000
1,593,296
1,859,775
2,170,822
2,533,892
No.
1
Wastewater/ person
(l/person/day)
Wastewater tariff
(VND)
3%
10
11
12
13
12,068
13,878
15,960
18,354
21,107
24,273
27,914
32,102
700,235
710,738
721,399
732,220
743,203
754,352
765,667
777,152
245,082
248,758
252,490
256,277
260,121
264,023
267,983
272,003
2,957,686
3,452,359
4,029,766
4,703,744
5,490,446
6,408,723
7,480,582
8,731,709
14
15
16
17
18
19
20
36,917
42,454
48,822
56,146
64,568
74,253
85,391
Page 107
788,809
800,641
812,651
824,841
837,213
849,771
862,518
276,083
280,224
284,428
288,694
293,025
297,420
301,881
10,192,087
11,896,714
13,886,439
16,208,946
18,919,892
22,084,244
25,777,834
Calculation of cash flow
Total project cost

NO. Items
Operation costs
Salary payment
2
3
4
Depreciation of fix assets

Big & small maintenance
Overhead costs
Year 6
403,21
8
403,21
8
Year 13
29,33
7
97
2
28,13
2
7
6
15
7
Year 7
29,31
4
97
2
28,13
2
5
7
15
4
Year 8
29,31
8
97
2
28,13
2
5
9
15
5
Year 14
Year 1
403,21
8
Year 2
403,21
8
Year 3
403,21
8
Year 4
403,21
8
Year 5
403,21
8
403,21
8
403,21
8
403,21
8
403,21
8
403,21
8
Year 9
29,32
1
97
2
28,13
2
6
2
15
5
Year 15
Year 10
Year 11
Year 12
29,325
29,328
29,332
972
972
972
28,132
28,132
28,132
65
69
72
156
156
157
Year 16
Year 17
Year 18
Year 19
Year 20
29,341
29,345
29,350
29,355
29,361
29,366
29,372
972
972
972
972
972
972
972
28,132
28,132
28,132
28,132
28,132
28,132
28,132
80
84
88
92
97
102
107
158
158
159
160
160
161
162
Cash flow statement.
Estimated Profit/ loss statement

No
Items
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
Page 108
.
1
2
Total revenue
VAT tax
1,365
-
1,593
-
Operation & construction costs
4
5
403,218
403,218
Gross profit
CIT
(401,853)
-
(401,625)
-
(401,359) (401,047) (400,684)

-
Profit after tax
(401,853)
(401,625)
(401,359) (401,047) (400,684)
20,161
20,161
20,161
20,161
20,161
Financial contingency 5%
Investment & development fund
10%
40,322
40,322
40,322
40,322
40,322
Welfare fund 10%
40,322
40,322
40,322
40,322
40,322
Dividend payment 12%
48,386
48,386
48,386
48,386
48,386
Retained profit
Debt payment and reinvestment
(401,853)
(401,625)
362,896
403,218
Profit
(38,957)
1,593
Depreciation of fixed asset

IRR, NPV indicators
Investment rate
IRR
NPV
403,218
YEAR 6
2,958
403,218
(400,261)
(400,261)
1,860
2,171
2,534
403,218
403,218
403,218
(401,359) (401,047) (400,684)

403,218
403,218
403,218
1,860
2,171
2,534
403,218
403,218
403,218
403,218
YEAR 10
YEAR 11
YEAR 12
YEAR 13
10.00%
11.15%
4,553
YEAR 7
YEAR 8
YEAR 9
3,452
4,030
4,704
5,490
6,409
7,481
8,732
29,314
29,318
29,321
29,325
29,328
29,332
29,337
(25,862)
(25,288)
(24,617)
(23,834)
(22,920)
(21,852)
(20,605)
(25,862)
(25,288)
(24,617)
(23,834)
(22,920)
(21,852)
(20,605)
20,161
1,466
1,466
1,466
1,466
1,466
1,467
1,467
40,322
2,931
2,932
2,932
2,932
2,933
2,933
2,934
Page 109
40,322
2,931
2,932
2,932
2,932
2,933
2,933
2,934
48,386
3,518
3,518
3,519
3,519
3,519
3,520
3,520
(25,862)
(25,288)
(24,617)
(23,834)
(22,920)
(21,852)
(20,605)
28,132
28,132
28,132
28,132
28,132
28,132
28,132
2,269
2,844
3,514
4,297
5,212
6,280
7,527
28,132
28,132
28,132
28,132
28,132
28,132
28,132
(400,261)
403,218
2,958
403,218
YEAR 14
10,192
29,341
(19,149)
(19,149)
1,467
2,934
2,934
3,521
(19,149)
28,132
8,983
28,132
YEAR 15
11,897
29,345
(17,449)
(17,449)
1,467
2,935
2,935
3,521
(17,449)
28,132
10,683
28,132
YEAR 16
13,886
29,350
(15,464)
(15,464)
1,468
2,935
2,935
3,522
(15,464)
28,132
12,668
28,132
YEAR 17
16,209
29,355
(13,146)
(13,146)
1,468
2,936
2,936
3,523
(13,146)
28,132
14,985
28,132
YEAR 18
18,920
29,361
(10,441)
(10,441)
1,468
2,936
2,936
3,523
(10,441)
28,132
17,691
28,132
YEAR 19
22,084
29,366
(7,282)
(7,282)
1,468
2,937
2,937
3,524
(7,282)
28,132
20,850
28,132
YEAR 20
25,778
29,372
(3,594)
(3,594)
1,469
2,937
2,937
3,525
(3,594)
28,132
24,537
28,132
The life cycle of the project is determined on the basis of 20 year depreciation of fixed
assets in accordance with current regulations of Vietnam and the guidance of WB about
calculating time of the project life cycle.
The results of financial analysis are as follows: (details in the appendix of the report)
FIRR:
11,15%
FNPV:
4,553,000
5,5% Higher than the

assumed inflation
rate
(1000 VN)
Figure H-1: Profit after tax.
Page 110
From the above results, it is shown that the project is beneficial for people in terms of social
welfare and living condition without commercial purpose. And the project is sustainable for the
operation of wastewater collection & treatment system according to the stated-above indicator.
Therefore the project is applicable for the loan of World Bank
6.1.2. Repayment ability of the project:
Peoples Committee of HCMC shall be the representative for the Government of Vietnam in
responsible for payment in accordance with terms and conditions of WB.
Loan interest: 0%
Principle payment time:
Payment term:
20 years
at the end of each term
6.1.3. Sensitivity analysis of financial forecasts.

Sensitivity analysis is to evaluate the impact of the different forecasts. Especially the
different solutions to the wastewater tariff with different ratio in calculating the depreciation are
shown in the sensitivity analysis to the project owner and wastewater generators. The indicators to
be included in the sensitivity calculation are:
Changes of the total investment: due to different causes related to mechanism and inflation,
etc.
All the changed factors are listed in the following tables:
One-variable data table
Increase the total
investment
IRR
0%
11.15%
NPV
4553.20
Increase of the
0%
Changes of the total investment
0%
5%
10%
11.15%
10.66%
10.21%
4,553.20
6,000
2,720.39
887.58
15%
9.78%
(945.23)
20%
9.38%
(2,778.04)
vn
Page 111
wastewater
Changes of the wastewater tariff
4,00
5,00
6,00
0
0
0
6.83%
9.15%
11.15%
6,00
0
IRR
11.15%
NPV
4553.20
(10,849.84) (3,148.32) 4,553.20
7,00
8,00
0
12.91%
0
14.52%
12,254.73
19,956.25
Two-variable data table

NPV
Changes in the total investment

0%
Changes in wastewater tariff
4,553.20
10%
15%
20%
25%
30%
4,000
(10,850) (12,683) (14,515) (16,348) (18,181)
(20,014)
(21,847)
5,000
(3,148)
(4,981)
(6,814)
(8,647)
(10,480)
(12,312)
(14,145)
6,000
4,553
2,720
888
(945)
(2,778)
(4,611)
(6,444)
7,000
12,255
10,422
8,589
6,756
4,923
3,091
1,258
8,000
19,956
18,123
16,291
14,458
12,625
10,792
8,959
9,000
27,658
25,825
23,992
22,159
20,327
18,494
16,661
10,000
35,359
33,526
31,694
29,861
28,028
26,195
24,362
IRR
11.15%
4,000
Changes in wastewater tariff
5%
5,000
6,000
7,000
8,000
9,000
10,000
0%
Changes in the total investment

5%
10%
15%
20%
25%
30%
6.83%
6.41%
6.02%
5.65%
5.30%
4.97%
4.65%
9.15%
8.70%
8.28%
7.88%
7.50%
7.15%
6.81%
11.15%
10.66%
10.21%
9.78%
9.38%
9.00%
8.64%
12.91%
12.40%
11.92% 11.46%
11.04%
10.63%
10.25%
14.52%
13.97%
13.46% 12.98%
12.53%
12.11%
11.70%
16.01%
15.43%
14.89% 14.38%
13.91%
13.46%
13.04%
17.40%
16.79%
16.22% 15.69%
15.19%
14.72%
14.28%
Thus, in case the depreciation rate increases to 60%, the wastewater tariff should be
vnd/1m3 to ensure the financial requirements. This is a high cost and is not suitable for people of
Vietnam in general and people of Ho Chi Minh City in particular. Therefore, we have proposed that
Page 112
it is necessary to have subsidy from the government, the state budget for the operation and
maintenance of drainage & sewage systems in Ho Chi Minh City.
On the other hand, it is also necessary to have a roadmap for increasing the wastewater
discharge tariff according to the actual management & operation. The depreciation rate of 60%
should be applicable in the most suitable time in order to re-investment and repair works on the
drainage & sewage system. Then the wastewater discharge tariff should increase significantly
according to the tables of analysis results.
6.2. Evaluation on the social impacts
6.2.1. Drainage & sewage and environmental sanitary
The drainage &sewage and environmental sanitary are necessary to be solved in residential
areas in urban areas. Many places in the project are seriously flooded due to the weakness in
drainage & sewage system. In addition, environmental pollution is a very urgent matter in localities
since there are no wastewater collection and treatment systems.
Therefore, the demand for drainage & sewage is very clear and urgent. The households are
willingness to be provided with the drainage & sewage provision through the commitment
statement and discussion in meetings. So, the people have demand and are willingness to pay for
the provided drainage & sewage services. The raised matter is the service quality shall have a
decisive role in the demand and payment capacity of the customers. The demand and requirements
of the beneficiary are shown in their willingness to connect with the urban drainage & sewage
system, their support in construction of drainage & sewage systems for their own benefits. From
the need of sewers with grade 3 in subareas, rehabilitation & construction of sewers with grade 1
and grade 2, the project basically meets the demand and requirement of the beneficiaries. The need
for improving the environmental sanitary has been met through the collection system and
wastewater treatment system, rehabilitation and construction of new sewers in order to fully control
the flood in urban areas.
6.2.2. Living condition of residents and economic development:
It is possible that the project will improve the living condition significantly through the
provision of unavailable services at the moment or available services which are in poor condition
as well as health improvement. The health shall be improve as the environmental sanitary shall be
improved thanks to construction of drainage system and dredging of the river, separate collection
system and wastewater treatment in order to reduce the impacts from diseases generated from
wastewater as well as improving the working capacity of people. The leave from work and sickness
due to the flood and improper wastewater system shall have negative impact on the poor people
and increase the poverty. A clean natural condition shall attract and keep an amount of visitors to
the area and change the view of investors.
Infrastructure improvement shall promote the local economic development, generating from
the demand increase of material and construction workers. The benefit for the poor (male and
female) shall create more work for unskilled workers.
The programs for improving awareness shall encourage the relationship development
between seriously poor people with the public organizations, public infrastructure works and
authority agencies of the city as well as promote community sense in poor areas. The public
program shall develop and increase skills for public officers and local authority agencies and PCs.
Page 113
6.2.3. Effect of the project on poverty reduction

Urban poor people have to suffer from lack of sanitation services due to living in makeshift
homes in the small and long alley with narrow aisles and along the polluted channels. Due to the
lack of fresh water, the people have to face the risk of serious diseases in case of environmental
conditions with lack of sanitary.
The poor are vulnerable to depression and sometimes with life-threatening diseases such as
diarrhea, typhoid, cholera, dengue fever and parasites, skin diseases and eye ailments. The disease
is strongly implicated in drinking water and drainage conditions. The poor households have to use
the unsystematic and unqualified sanitation with clogging, damage and leak, which shall take time
and cost for repair but are not satisfied with the usage demand. In addition most of the poor
households must earn living by unstable jobs and they cannot go to work because of sickness, or
have to spend time and money to repair the sewage system resulting in the income reduction and
more severe poverty. The relevant organizations are strengthening with management capacity for
effective and sustainable operation & management of the drainage & sewage and wastewater
treatment.
6.3. Evaluation on the project feasibility
6.3.1. Technical feasibility:
The project shall be applied with the advance and modern technology in accordance with
the donors requirement as well as strictly follow regulations and standards of Vietnam.
Furthermore, criteria and recommend from related project as well as from foreign experts and
advices of donors shall be applied and follow in the most effective manner by the Consultant.
The wastewater amount of the city shall be collected to the treatment station. The
wastewater after treatment shall be discharged to the rivers and channels. Owning to the
construction location of the sewers and treatment station, wastewater from a large city area shall be
collected. This shall help to increase the stabilities in terms of environment and policy for
sustainable development of Vietnam.
6.3.2. Environmental feasibility:
Thank to the project implementation, the drainage & sewage and flood control and
wastewater collection for households shall be improved. The wastewater quality after treatment at
Nhieu Loc Thi Nghe Treatment Plant shall meet Class A in accordance with TCVN 5945-2002,
the highest standard and therefore it shall meet environmental standards of Vietnam.
6.3.3. Financial feasibility:
Internal rate of return on the project is 7.59 % higher than the assumed rate of inflation of 6
%. It is necessary to ensure the costs for internal return is higher than the average costs of return at
different rates of interest.
But when considering about the costs, it is also necessary to consider about development
potentials in the project area as well as job creation. Other economic benefits also should be
considered including, including the increase of value of assets, health improvement and sickness
reduction. Actual expense ratio is much higher than the calculated figures.
The drainage fee will help the Operations Centre Flood Control Program in Ho Chi Minh
City is the unit receiving and managing the construction of capital projects created to perform the
work necessary to serve for extending sewer service to meet the high requirements of our
customers.
Page 114
The wastewater discharge tariff shall assist the HCMC Steering Center of the Urban Flood
Control Program, who shall take over and mange the works under the project in order to create the
fund for implementation of the project, serving the expansion of discharge service coverage in
order to meet the higher requirement of customers.
6.4. Risk evaluation
6.4.1. Commercial risks
The administrative procedures and procedures for project approval and issuance of decision
at different sectors and agencies shall take time and result in the efficiency reduction of the project
partially. If the approval of project investment fund is prolonged, the plan and estimates are
possible to be drafted again, resulting in the prolonged delay time in the total implementation time
later.
The changes in the scope of work during the project implementation shall have effects on
the progress and usage of resources for project supervision, such as redesign and re-preparation of
the bidding documents, etc. The situation shall result in the waste of reserved capital and addition
of new investment for the re-design.
The acquisition capacity of the organizations and employers regarding a huge amount of
knowledge about technique may lead to the delay in the decision making process and approval of
design, and then the master schedule shall be affected.
The re-organization of the management board in order to meet the standards as set forth for
the project should be done quickly. Otherwise, it shall result in the misleading in the overall design
and procurement process, causing the delay in the progress.
The commercial risks of the project should occur if:
- The World Bank does not grant a soft loan for the project implementation;
- The PC of HCMC does not provide the counter-part fund for activities to prepare for the
investment;
- Vietnamese agencies suspend the project implementation due to the insufficient fund.
- The Vietnamese agencies suspend the project because the effectiveness of the project fails
to meet the customers requirements.
There are almost no political risks in Vietnam, which is a stable country in terms of polity
and sustainable economic development.
The relation with the local agencies has a very important role because the situation that the
budget for the project is very comparable between the local agencies is very sensitive.
Changes about legal regulations, taxes and other charges could lead to the delay and cost
increase as the cases of VAT tax increase applied in January 1999.
Table of commercial risk and recovery measures
Risks
Consequence
Delay due to any reasons Estimated costs for
(changes in the scope of project would increase
work, approval procedures)
Measures
the Increase
the
number
of
supervisors, explain reasons for
delay and request for more
investment.
Ineffective work of the Insufficient
qualification, It is necessary to analyze the
local officers
prolonged time for approval strong and weak points of the
and
decision
making local officers and propose the
Page 115
Risks
Consequence
procedures
Quality
Increase more
delayed time
Political decisions of local Conflict

agencies
problems
&
costs
&
management
Lack of qualified
proper officers
and Cooperation is no longer

favorable with customers and
subcontractors, resulting in
delay.
Cultural
conflict
individual conflict
and Delay, cost increase and profit

deduction.
Measures
training for officers about project
procedures
(techniques,
institution, procurement and
operation, etc.)
Agreement between the subconsultant and subcontractor to
avoid the risk
Negotiation with the local
agencies to minimize the delayed
time and discuss about the
possible compensation measures.
It is necessary to pay attention to
select contractor and have
training to understand the local
condition and culture.
Project Director of the Contractor
and head-office shall solve any
conflicts.
Improve the relationship with
customers and local constructors
with other shareholders.
Negotiation with customers
Changes of law, tax and

other fees
6.4.2. Socio-Economic Risk.
Economic development is a prerequisite for the development of industry and trade in Ho
Chi Minh City, to ensure that households using drainage & sewage service and sanitation have
sufficient future income to pay the costs of operation and maintenance. The economic recession
shall have negative impacts on the development of industry and business in the town and make the
income of the service users lower.
After 7 years from the project establishment in 2000, and after the completion of the project
prior to 2006, besides the potential concerns in some areas but the main risks were paid attention in
order to archive the targets of the Project on time. The connection of the households facilities with
the sewage system was done with good results as 75% of the households have been connected with
the system and the remaining households will be connected at the end of 2013. The public
disagreement is insignificant thanks to the great work of IEC section in improving the public
awareness about the Project. The resettlement for the affected households in the Wastewater
Treatment Plant was done in accordance with the schedule without any important incidents. The
land acquisition was done also for the area for extension of the WTP, therefore it is not necessary to
perform extra land acquisition.
Other risks related to the achievement of the Output and targets in the short term of the
Project (regarding the design and construction of drainage & sewage system) as provided below.
The Assumptions to identify the Risks and recovery measures to minimize or control the
concerned risks are shown in the following table.
Page 116
Risk identification and recovery measures in terms of socio-economy

Assumption
Regarding the development
targets: the city guarantee to
ensure
the
good
environmental management.
Risks
Environmental
management
plan, proposed by the Project
are not implemented by the
city during the construction
period.
Measures
Implementation
of
the
environmental management
plan is evaluated in the PostProject Phase with the report
on the implementation status
for
WB
and
Vietnam
Agencies.
Human
Resources
for
management and operation of
the wastewater treatment and
sanitary
company
shall
continuously developed by
HCMC PC and PC of District
2.
Managers or operators are

assigned to new positions or
change the jobs. No further
training and development is
carried out in favor of staff.
Service
quality
and
management quality is lower.
Training courses for technical

staff and office staff are
continuously
organized
during
the
project
implementation and in the
future in order to train the
new staff. Salary increase and
encouragement for staff are
very necessary to keep the
key staff.
Managers or operators are

assigned to new positions or
change the jobs. No further
training and development is
carried out in favor of staff.
Service
quality
and
management quality is lower.
The improper implementation,
illegal
connection
and
discharge
of
wastewater
without treatment to the
network, etc shall have
negative impacts on the normal
operation
of
the
WTP.
Pollution
treatment
for
receiving bodies is not
implemented. heavy metals
such as chromium, cadmium,
zinc can concentrate in sludge
and spread when being used as
a fertilizer
The
evaluation
and
observation can be done in
the Post-Project Phase and the
report shall be submitted to
WB and Vietnam Agencies.
Related to the short term

targets
Competent staff and mangers
that are trained during the
implementation shall be kept
for a long time and the
development of labor force
shall
be
implemented
continuously.
The authority agencies of
HCMC shall implement the
environmental management
plan
and
relevant
organization,
including
preliminary treatment of
industrial wastewater before
connection to the system and
compulsory
connection
regarding the households.
The wastewater regulations

(laws) will be introduced and
implemented at provincial
level. Urban Drainage &
Sanitary
Company
will
establish a unit to implement
the regulations on wastewater
and discharge system as well
as impose sanction on the
violators. A survey of all
businesses and industries in
the service area will be
carried out to identify all
potential sources of hazardous
discharge
and
require
Page 117
Assumption
Risks
The tariff collection from the

wastewater discharge shall be
used for operation and
maintenance of the drainage
& sewage system.
The
tariff
collection
is
transferred to another agency,
resulting in the lower quality of
drainage and sewage service.
Compliance with operation The operation and maintenance

and maintenance schedule
staff do not follow regulations
and rules of maintenance and
the managers do not check the
operation and maintenance
staff, resulting in a lower
quality.
Measures
preliminary treatment or
separate sewage system after
determine the type of waste.
The management systems for
finance, plan and budget are
designed with the operating
organization (UDC HCMC).
In the post-project phase, the
Consultant may observe the
system and report to WB and
authority
agencies
of
Vietnam.
After the completion of the
main works, work warranty
shall be done in the new
phase (12 months) and UDC
HCMC shall operate the
works in the Post-project
period (12 months).
Therefore the Consultant can
supervise the operation and
maintenance and report to
WB and authority agencies of
Vietnam on the operation and
management problems if
occurring.
6.4.3. Institutional risks.

The orientation for origination of the operation & management agency for the drainage &
sewage system in HCMC shall have a significant effect on the sustainability of the project. If the
organizational structure of the PC at district level or provincial level is changed, the project
activities from management, operation and maintenance might be affected. The institutional risk is
possibly high if the city government applies a tariff lower than the actual costs, resulting in the
failure of the management & operation agency in terms of effective operation and maintenance of
the water supply system.
6.4.4. Technical risks.
The discharging technology regarding the wastewater after preliminary treatment has been
approved and accepted in different countries on the world, both developed and developing
courtiers, but it is still a new a technology in Vietnam.
Owning to the typical features of the technology, septic tank is a very important component
in the system and the prerequisite for households to connect with the central discharging system.
The working status of septic tanks shall have a decisive impact on the operation of the system.
There may be a risk that septic tanks are not built properly and no suction is done regularly,
resulting in the lower working efficiency of septic tanks. Then, the sludge overflows to the sewers,
Page 118
causing clogging and damage of the system. In order to limit the risk, the management program for
the septic tanks is prepared to ensure the efficient working condition.
There is possibly another risk that some households shall connect illegally to the system,
resulting in difficulties of management & operation due to the lack of control and increase of nonrevenue discharge.
Despite the fact that a series of lagoons is a popular process technology in the world and
have been proved that it is an effective treatment technology in the Phase 1. However if the
wastewater has a too large amplitude, the effluent shall be affected in terms of quality.
Besides, during the operation, the operation of technical workers can also be one of the
reasons affecting the effluent quality.
The assumptions and risks related to the design and construction supervision are shown in
the table below:
Risk identification and recovery measures in term of technology
Assumption
Related to the Output:
HCMC PC, DOC and DPI
shall approve the detailed
design
documents
and
bidding documents in time.
Managers and technicians

are recognized and kept
working for the New Urban
Drainage and Sanitation
Company.
Risk
Risk 1: The detailed design of
the sewage network and
works are not approved by
DOC. This risk would result
in the delay of bidding
document preparation and
construction phase.
Measures
Action 1: The Consultation,
having the key experts can
guarantee that the design
parameters are in accordance
with
standards
and
regulations
of
Vietnam,
actively discuss with local
authority agencies from the
initial phase of the detail
design to promote the good
cooperation between parties
and ownership of the final
design. So the risk during the
approval process could be
limited.
Risk 2: HCMC PC and DPI

do not approval the bidding
documents (internal bidding
package and domestic bidding
package)
Action 2: In cooperation with

the Steering Committee of the
City and PMU, the Consultant
shall prepare a bidding plan
for approval of HCMC PC
before completion of the
Design Report.
Action
1/2/3:
At
the
beginning, the employees (in
both quantity and quality)
assigned to work at PMU
shall be evaluated and any
deficiency shall be reported to
Risk 1: Managers and

technicians are not qualified
and
trained
sufficiently,
resulting in the lower
operation capacity.
Risk 2: There are not enough
Page 119
Assumption
Risk
qualified
candidates
designated for initial training
and take-over of positions.
The proposed salary is not
attractive enough to meet the
demand for these positions.
Risk 3: Managers and staff
are transferred or quite the
job.
In all the three cases, the
quality regarding service and
management shall be reduced
in a long term.
Measures
the city steering committee.
After
completion
of
construction
phase,
the
Consultant might continue
supervision and evaluation
during the Post-project phase
and has a report with proposal
to WB and authority agencies
of Vietnam.
6.4.5. Risks regarding customers.

A typical feature in Ho Chi Minh City is that there are many ponds, lakes and small
streams. People in the city almost have no difficulty in finding positions discharging waste water
even if it could cause environmental pollution. On the other hand, some households still use the
existing system due to lack of awareness about sanitary and environment, habit and unfamiliarity
with payment for discharging wastewater.
Septic tanks are managed by the households and costs for suctioning the septic tanks would
be paid by the households, therefore the operation of the system shall dependent much on the
cooperation and awareness of the users.
Education and public awareness improvement should be promoted to minimize these risks.
Page 120
CONCLUSION AND PROPOSAL

1. Conclusion
HCMC Environmental Sanitary Project Phase 2 shall have benefits for District 2. It shall
not only create a fresh living environment for District 2, adjacent area and create a sustainable
development based on the synchronous development with the public involvement.
The project shall meet the aspirations of the people about a clean environment for living
and contribution to creating scenery for urban area and attracting the tourists and investors to
HCMC. The project as completion shall meet the demand of residents for drainage & sewage and
environmental sanitary services. The project shall not only control basically and thoroughly the
flood condition due to heavy rains but also create a fresher environment thanks to the separation of
wastewater with rainwater and treatment/ The project shall contribute to solving one of the urgent
matters of people and local authority agencies about infrastructure, to promoting socio-economic
development and improving the position and role of the national special metropolitan area.
The project is in accordance with the revised master plant of HCMC to 2020. The capacity
of management and operation regarding drainage & sewage system for Urban Drainage & Sewage
Ltd., Co. shall be strengthened through the takeover of the drainage & sewage system.
2. Proposal
The project shall be implemented within the framework of the master socio-economic
development plan, Therefore the study and implementation of projects regarding technical
infrastructure such as water supply , electricity , communication, postage , transportation ,
environmental sanitation and public services should be cooperated thoroughly. It is the general
principle is that infrastructure projects must not adversely affect drainage , wastewater treatment
and cooperate with other investment project to save land and construction costs. It should be
considered that the progress of drainage & sewage projects is one of the main basis for making
progress for other projects on urban infrastructure . The determination of the contents of
coordination between investment projects and drainage infrastructure works are necessary to be
studied in detail during project implementation.
It is proposed to the relevant agencies of the city that a mechanism for land compensation
and resettlement of project is developed in consideration about the residents living in the areas
having drainage & sewage work, according socio-economic condition of District 2 and in
compliance with legal regulations and policies of the Government. It is advised to combine the
benefits of drainage & sewage system with the benefits from the added value of land, services and
trading & commercial activities to mobilize more investment in order to establish a complete
system of transport urban development in the project area.
Due to the large investment in the project, HCMC PC is kindly request to support and
facilitate the Employer to implement some necessary procedures for application for OAD loan with
soft interest. Regarding the counterpart fund, HCMC PC is kindly requested to make balance and
arrange budget for the project implementation.
In order to meet the project schedule, HMC PC is advised to direct relevant organizations
and department to closely cooperate with the Employer during the project preparation and approve
the project for the next step of the project.
Page 121

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TABLE OF CONTENTS

2.4.5. Conformability with the master construction planning of District 2 to 2020.....29

3.5.1. Standards and criteria.........................................................................................82

6.1.1. Financial evaulation.........................................................................................105

Figure 1.General planning of District 2 to 2020....................................................................9

Table 1. Details of items in the rainwater collection system..................................................4

CHAPTER I. SUMMARY ABOUT THE PROJECT

Construct rainwater and wastewater collection systems in District 2, HCMC to reduce

b. Main components of the project

Soth of Thao Dien

- Manhole with pipeline 1200

- Manhole with pipeline 1000

Binh Trung Dong - Binh Trung Tay - Cat lai

- Manhole with pipeline 1200

- Manhole with pipeline 1000

- Manhole with pipeline 800

- Manhole with pipeline 1500

- Manhole with pipeline 1200

- Manhole with pipeline 1000

- Manhole with pipeline 800

- Manhole with pipeline 600

- Manhole with pipeline 500

Collection system of domestic wastewater with Grade 2, Grade 3.

1.1.2. Project-relevant agencies

1.2. Project implementation schedule

Making an investment project construction 06/2013

1.3. Project implementation site.

Figure 1.General planning of District 2 to 2020.

Project management costs

Consultant costs for investment &

CHAPTER II. BACKGROUND AND BASIS OF THE PROJECT

K HU CONG NGH ECAO

K HUTD TTRA CHC HIE

AT TRUNG TAM CONG CO

Figure 2. General layout of District 2

2.2.2. Project conditions and background.

implemented according to the economic development in combination with preservation of

Right side of Sai Gon Left side of Sai Gon

Risk of flood owning to sea level rise.

Existing city center

Existing city center

Existing city center

Craft villages &

Water supply norm ( L/person/day)

Existing city center

Existing city center

Existing city center

TCVN 7222/2002: General environmental requirements for central domestic wastewater

Construct rainwater and wastewater collection systems in District 2, HCMC to reduce

Reduce the speed of natural basin establishment

Drainage Pump System

Water retention ponds

Drainage Pipe / Channel Development

Figure 4: Mapping planning about flood control in HCMC

Districts in the basin

Wastewater discharge basins according to JICA planning

620,000 (pollution load)

Phase 2 (in 2045):

1,530,000 (pollution load)

CHAPTER III. PROJECT DISCRIPTION: DESIGN, RESORUCES AND RESULTS

- Manhole with pipeline 1200

- Manhole with pipeline 1000

Soth of Thao Dien