Annex II-b

II.MAIN POINTS DISCUSSED: PROJECT SPECIFIC ISSUES

Acronyms
C/S

Consulting services

DB

Dispute Board

D/D

Detailed design

DOT

Department of Transport

DRVN

Directorate of Roads of Viet Nam

F/S

Feasibility study

HPC

Hanoi Peoples Committee

HQV

Hoang Quoc Viet

HRR3

Hanoi Ring Road No.3

ITS

Intelligent Transport System

JICA

Japan International Cooperation Agency

M/D

Minutes of Discussion

MD-STL

Mai Dich-South Thang Long

MOF

Ministry of Finance

MOT

Ministry of Transport

PMUTL

PMU Thang Long

RRMU

Regional Road Management Unit

STL

South Thang Long

S/V

Supervision

WTL

West Thang Long

1.

Project Scope
According to the Feasibility StudyF/S prepared by PMUTL (dated June 2012), (1) tThe

original scope of the Project only includesd the construction of the viaduct and interchanges
between MD-STL, and (2)because the widening of the existing road, Pham Van Dong Street,
iwas planned to be completed by HPC before the start of the construction of the viaduct.
However, taking into account the situation of HPCs local budget, both sides acknowledged
that the widening of the existing road may take a long time. Given this circumstance, both
sides considered ways to implement this Project whether it is possible to construct the viaduct
without the widening of the road and came to the conclusion that the most feasible option
from the perspective of cost, time, impact to traffic, etc. is to incorporate the widening project
into this Project.there are no options that meet both economic and technical requirements.
Therefore, both sides agreed to consider incorporating the widening work into this Project;.
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For this reason, the JICAMOT, however, informed the JICA mission that the widening project
cannot be expected to begin on time due to lack of budget of HPC. Upon agreement from
HPC, MOT, therefore, proposed to include the scope of the widening project into this Project
in order to (1) reduce the risk of delay of the viaduct construction, (2) avoid the additional
construction cost that will be necessary to make it less dependent on construct the viaduct
with minimum dependence to the widening project. The JICA mission acknowledgedagreed,
in principle, to MOTs proposal; however, mission requested MOT and PMUTL to update the
F/S to incorporate the widening projectaccordingly. Given the updated F/S, JICA will assess
the necessity and the rational of the scope of the widening work and make the final decision
during the appraisal.
2.
(1)

Project Preparation
Approval for Incorporating the Widening Work into this Project
Because currently this Project is owned by MOT and the widening project by HPC,

MOT explained that approval from the Prime Minister is necessary in order to combine the
two projects. Upon signing, MOT will submit this M/D to the Prime Minister together with
the proposal to combine the two projects by September 14th, 2012. It is expectedJICA
requested that the proposal willto be approved within September 2012.
MOT, in addition, expressed their concern that MOF may not agree to proceed with this
project due to (1) the high cost of land acquisition and resettlement and (2) the risk of delay
that will cause excessive unnecessary accumulation of commitment charges. Therefore, MOT
will consult with MOF before September 14th, 2012 and report back the result to the JICA
missionva. If MOF disagrees, both sides agreed to consider alternatives such as (1) requesting
HPC to cover some of the resettlement cost from their budget, (2) the reduction of reducing
the width of the widening in order to reduce the number of resettlement, and (3) the
application ofapplying time-slice loan in order to reduce the amount accumulation of
commitment charge accumulation.
(2)

Feasibility Study
The F/S of the widening project was conducted and approved by MOT in 2010

(Correspondence No. 103/QD-BGTVT dated January 14th, 2010). The F/S of the viaduct
construction has been under preparation since February 2012. Now that the two projects are to
be combined, the updated F/S including the scopes of the two projects will be prepared and
submitted to JICA by September 24th29th, 2012. At the same time, it will be submitted to MOT
for approval. It is expected that it will be approved bywithin November 1st, 2012.

Annex II-b

3.
(1)

Project Content and Design

Cross-section
Currently, the cross-section of the Project consists of 4 lanes of expressway on the

viaduct, and 4 lanes each of urban primary road and frontage road on the ground and another
4 lanes of frontage road on the ground. Due to lack of sufficient traffic demand data, tGiven
thathe JICA mission could not confirm the appropriateness of this design especially given that
the adjacent sections have much smaller capacity. Specifically, on the southern adjacent side,
North Linh Dam-Mai Dich section, only has 4 lanes of expressway and 4 lanes of frontage
road, and on the northern side, Thang Long Bridge, only has 4 lanes of urban road and 2
motorbike lanes,. Tthe JICA mission, therefore, requested PMUTL to carefully analyze the
traffic demand and forecast of not only the target section but the adjacent sections so that the
appropriateness of the planned cross-section. so that iIf adjustments may seem necessary to
the design of other sections, such study can be included in the TOR of the consulting service.
This analysis should be submitted to JICA either as part of the updated F/S or as a separate
document by September 294th, 2012.
(2)

ITS
MOT is currently preparing to build an ITS network in Hanoi and the surrounding region

using Japanese ODA. Emphasizing the importance of incorporating MD-STL section into the
regional ITS network, tThe JICA mission proposed requested PMUTL to include ITS
equipment into this Project so that the MD-STL section will be incorporated into the planned
ITS network. PMUTL explained that although the viaduct is planned to be designed so that
ITS equipment can be easily installed; however, the actual investment should be made by
DRVN which was recently assigned as the agency in charge of ITS equipment had not been
included in the Project because the agency responsible for ITS investment and operation had
not been decided within the Vietnamese Government. Given that DRVN has recently been
assigned as the organization in charge of ITS (MOTs Decision 2036/QD-BGTVT dated
August 27th, 2012)., MOT ensured the JICA mission that MOT will instruct DRVN to make
sure that they will incorporate the MD-STL section into their investment planning of the
regional ITS network.
PMUTL confirmed that they will discuss DRVN about the installation and report back to
JICA by September 24th, 2012.
(3)

Pedestrian Bridge and Underpass

PMUTL confirmed that pedestrian bridges and underpass will be constructed at 76

locations so that local residents will be able to cross the street safely. The exact location of the
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bridges and underpass will be decided at the time of D/D in consultation with the local
communitiesy. In addition, local communities will be consulted on the necessity of other
traffic safety measures such as separator walls to prevent people from entering into the urban
primary road.
The JICA mission, in addition, requested PMUTL to review the construction
implementation execution plan and the cost estimate of the pedestrian bridge and underpass so
that the implementation execution plan is optimal and so that the cost estimate reflects the
difficulty of implementationexecution. For example, if the pedestrian bridge is to be built after
the construction of the viaduct, the limitation of space above the pedestrian bridge will make
its implementation more difficult. This difficulty should be reflected into the cost estimate.
(4)

Pavement Design
Given their experience with rutting in on Thanh Tri Bridge, PMUTL explained that

MOTs Department of Science and Technology is currently conducting a thoroughvarious

studyies to identify the causes and optimum countermeasures. One of Thisthe study is being
undertaken with the support of Japanese Ministry of Economy, Trade and Industry. In order to
minimize the occurrences of rutting, PMUTL confirmed that, if appropriate, the result of the
studyies will be fully reflected into the D/D of this Project.
they will employ flow-resistant specification for the pavement of the viaduct and
polymer-modified asphalt on the ramps in order to minimize the deterioration of the pavement
caused mainly by overloaded trucks. In addition, PMUTL explained that measures will be
taken to prevent the entrance of overloaded trucks as detailed below in Operation and
Maintenance.
(5)

Underground utilities
The location of underground utilities will be surveyed during the detailed designD/D.

PMUTL confirmed that Pprovisional sum will be allocated in the construction contract so that
in case utilities not identified during the design stage are found during the construction stage,
they can be relocated..
(6)

Consulting Services
The JICA mission questioned the rational of assigning the team leader only 4 man-months

during the tendering assistance period which is expected to last 19 months. PMUTL explained
that since they have gained a substantial amount of experience managing Thanh Tri River
Bridge Construction Project and Hanoi City Ring Road No.3 Construction Project, most of
the tendering process can be done by PMUTL alone. The only activities necessary for
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assistance is preparation of answers to questions during the tender period and the evaluation
of technical bids. The JICA mission took note of it.
Regarding the highway engineers during D/D, Tthe JICA mission, in addition, requested
PMUTL to consider allocating additional man-months because the current quantity appears to
be insufficient to cover the design of urban roads. PMUTL took note of it and agreed to
consider this matter during the appraisal.for highway engineers.
The JICA mission, furthermore, requested PMUTL to allocate man-months during the
Defect Liability Period because procedures required under the contract such as the final
account settlement need to be checked and certified by the engineer. PMUTL acknowledged
the necessity but explained that the Vietnamese regulation prohibits the allocation of manmonths for estimate. PMUTLs intention is that since the construction is expected to complete
earlier than planned, use the leftover man-months during the DLP.and agreed to assign
appropriate man-months during this period.
4.
(1)

Implementation schedule
Construction Period
The proposed construction period is 30 months for the viaduct and 14 months for the

urban primary and frontage road. Combined total construction period is 36 months. Taking
into consideration the following results of the on-going packages of Hanoi City Ring Road
No.3 Construction Project, both sides agreed that the proposed period is sufficient.
Package No.

Length

Construction Period

Construction Period

(contract)

(expected/actual)

Package 1

3.2km

30 months

22 months (expected)

Package 2

2.1km

30 months

15 months (expected)

Package 3

3.4km

30 months

25 months (actual)

(2)

Implementation Schedule of Related Projects

The JICA mission emphasized that the implementation schedule of the Project needs to be

aligned to the schedule of related projects such as the extension of HQV street, construction
of WTL street and the resettlement site construction project. According to HPC, the F/S of the
extension of HQV street and the construction of WTL street will start at the end of 2012 but
the JICA mission could not confirm the detailed construction schedule. Similarly, the JICA
mission could not confirm the schedule of the construction of the resettlement site. In order to
confirm the appropriateness of the implementation schedule of this Project, the JICA mission
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requested PMUTL to consult and coordinate with HPC and submit to JICA the detailed
aligned implementation schedule of the related projects by September 29th, 2012. PMUTL
agreed to it.
5.

Project Cost
Both sides confirmed that the tentative Total Project Cost (with the cost of DB) is X

52,166 million JPY out of which X 33,033 million JPY is eligible for JICA financing. Total
Project Cost (without the cost of DB) is X 52,016 million JPY out of which X32,906 million
JPY is eligible for JICA financing.
Recognizing that PMUTL has not had enough time to review the cost estimate of the
widening work, the JICA mission requested PMUTL to review it thoroughly and make
necessary adjustments. PMUTL agreed to it.
If difficulties arise in moving the project forward due to (1) the high cost of land
acquisition and resettlement and (2) the risk of delay that will cause unnecessary
accumulation of commitment charges both sides agreed to consider alternatives such as (1)
requesting HPC to cover some of the resettlement cost from their budget, (2) reducing the
width of the widening in order to reduce the number of resettlement, and (3) applying timeslice loan in order to reduce the accumulation of commitment charge.

6.
(1)

Packaging and Procurement Method

Construction Woks
PMUTL and the JICA mission discussed 3 options of package organization (Attachment

14X). Emphasizing the importance of securing the perfect coordination between the
construction of the frontage road and the viaduct, the JICA mission recommended either
option 1 or option 3. Recognizing that the package organization is critical to smooth
implementation of the Project, both sides agreed to study the advantages and disadvantages of
each option and discuss again during the appraisal.
(2)

Consulting Services
Both sides agreed that there will be 2 consulting service packages. The scope of the first

consulting service will be detailed design and tendering assistance and the other will be
construction supervision. Because this Project does not meet any of the types of assignments
applicable for QBS, both sides agreed to apply QCBS as the selection method.

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7.
(1)

Operation and Maintenance (O&M)

Responsible Organization
PMUTL confirmed that the RRMU of DRVN, specifically, RRMU2, will be responsible

for the O&M of the viaduct. For efficiency, there are discussions about transferring this
responsibility to HPCs DOT who manages all the surrounding roads. MOT confirmed that if
there are any changes to the arrangement, they will report to JICA immediately. For the urban
road, HPCs DOT will be responsible for the O&M of the urban road. PMUTL will include
details of RRMU2s and DOTs technical and financial capacity of O&M in the updated F/S.
(2)

O&M Cost and Its Appropriation

PMUTL explained that O&M cost will be financed partly by the Road Maintenance

Fund, recently established under Decree No.18/2012/ND-CP dated March 13th, 2012., and
MOT assured the JICA mission that if the funding from Road Maintenance Fund is not
sufficient to cover the entire O&M cost, the rest will be covered by state/provincial budget.
Currently, there are no plansNo to collect tolls will be collected within this section.
In the updated F/S, PMUTL will add include the details of O&M cost including that of
the urban road and how they will be appropriated.
(3)

Monitoring of Overloaded Trucks and Motorcycles

Recognizing that (1) overloaded trucks is one of the causes of rutting in many urban

roads and bridges including the Thanh Tri Bridge, and (2) entrance of motorcycles into the
viaduct is a potential cause of severe traffic accidents, both sides agreed to discuss about an
action plan for applying countermeasures. the JICA mission requested PMUTL to develop a
program of monitoring overloaded trucks and entry of motorcycles into the viaduct. PMUTL
agreed to submit to JICA the proposal by September 29 th, 2012.The JICA mission will collect
experiences in other countries and MOT will consolidate their past efforts and future plans.
8.
(1)

Performance Indicators and EIRR

Performance Indicators
The JICA mission and MOT PMUTL confirmed the operation and effect indicators as (1)

annual average daily traffic (PCU/day) and (2) average travel time (minutes).

per

Attachment 7-1. The JICA mission requested PMUTL to collect the baseline data for theseall
indicators before the appraisal mission. PMUTL agreed to it.
(2)

Economic Internal Rate of Return (EIRR)

PMUTL confirmed that EIRR will be recalculated incorporating the addition of the
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widening scope. The recalculated EIRR will be submitted to JICA as part of the updated F/S.
9.

HIV/AIDS Prevention Program

PMUTL confirmed that HIV/AIDS prevention and women empowerment program will

be conducted as per Attachment 4cX under the consulting service package.

10. Safety and Quality Control System Checklist
PMUTL explained that the safety and quality control patrol has been conducted
constantly by the contractors and the consultant. The Safety and Quality Control System
checklist was provided as per Attachment 159-1.

11. Actions to be Taken

Action

By Whom

1. Submit to Prime Minister the proposal to include MOT

By When
September 14th, 2012

the widening project.

2. Discuss with MOF regarding the allocation of MOT
budget

necessary

for

land

acquisition

September 14th, 2012

and

resettlement.
32. Submit to JICA and MOT the revised F/S PMUTL

September 249th, 2012

including (1) the detailed traffic demand analysis,

(2) cost and implementation schedule of the urban
road, (3) O&M structure and cost of the urban road,
and (4) updated analysis of economic returns.
43. Approve the revised F/S.

MOT

45. Submit to JICA the traffic demand analysis of PMUTL

November 1st, 2012

September 249th, 2012

the wider road network including the adjacent

section of Mai Dich-North Linh Dam and the
Thang Long Bridge.
Discuss with DRVN and report back to JICA PMUTL

September 24th, 2012

regarding the inclusion of ITS equipment into this

project.
56. Submit to JICA implementation schedule of the PMUTL
Hoang Quoc Viet Extension Project and the West
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September 294th, 2012

Annex II-b

Thang Long Construction Project

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