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November 1, 2017 | Author: HữuNguyệnNguyễn | Category: Combined Sewer, Sewage, Ho Chi Minh City, Wastewater, Sanitary Sewer
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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. Sơ đồ phân chia lưu vực thoát nước thải Thành phố theo quy hoạch 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. Bản đồ hiện trạng nền và ngập úng.....................................................................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. Bản đồ lưu vực 5................................................................................................57 Figure 12. Bản đồ lưu vực 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 Bảng 2. Thống kê các Items công trình System thu gom nước thải sinh hoạt........................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 Bảng 7. Thống kê các Items công trình System thu gom nước thải sinh hoạt......................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 Bảng 19. Bảng tính lưu lượng nước thải quận 2 trong 1 ngày.............................................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 Bảng 24. Tiến độ các báo cáo môi trường...........................................................................84 Bảng 25. Thống kê vai trò và chức năng về môi trường của các 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.

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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 People’s 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

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-

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

I

Area

Outlet

II

Items

Construction

Soth of Thao Dien

Unit

Quantity

Pipeline - Pipeline 1500

m

3.570

- Pipeline 1200

m

3.770

- Pipeline 1000 Outlet - Outlet 1500

m

540

pcs

2

- Outlet 1200

pcs

9

- Outlet 1000 Manhole - Manhole with pipeline 1500

pcs

2

pcs

85

- Manhole with pipeline 1200

pcs

88

- Manhole with pipeline 1000 - Rainwater collection chamber Outlet - Outlet 1000

pcs

14

pcs

187

pcs

5

- Outlet 800

pcs

10

- Outlet 600

pcs

13

- Outlet 400 Pipeline - Pipeline 1500

pcs

8

m

1.493

- Pipeline 1200

m

2.406

- Pipeline 1000

m

886

- Pipeline 800 Outlet - Outlet 1500

m

1.119

pcs

4

- Outlet 1000

pcs

1

- Outlet 800

pcs

1

Page 5

No.

Area

System

Outlet

III

Items

Construction

Binh Trung Dong - Binh Trung Tay - Cat lai

Outlet

Unit

Quantity

Manhole - Manhole with pipeline 1500

pcs

38

- Manhole with pipeline 1200

pcs

58

- Manhole with pipeline 1000

pcs

24

- Manhole with pipeline 800 - Rainwater collection chamber Outlet - Outlet 800

pcs

28

pcs

148

pcs

6

- Outlet 600

pcs

8

- Outlet 400 - Outlet of open dykes B = 500 Pipeline - Box culvert 2000x2000 - Pipeline 2000

pcs

2

pcs m m m

2 701 1.610

- Pipeline 1500

m

2.612

- Pipeline 1200

m

431

- Pipeline 1000

m

4.768

- Pipeline 800

m

5.141

- Pipeline 600

m

858

- Pipeline 500 Outlet - Outlet of box culvert - Outlet 2000

m

484

pcs pcs

1 2

- Outlet 1500

pcs

1

- Outlet 1200

pcs

1

- Outlet 1000 Manhole - Manhole with culvert box Bxh (2000x2000) - Manhole with pipeline 2000

pcs

1

pcs

15

pcs

36

- Manhole with pipeline 1500

pcs

58

- Manhole with pipeline 1200

pcs

12

- Manhole with pipeline 1000

pcs

107

- Manhole with pipeline 800

pcs

118

- Manhole with pipeline 600

pcs

21

- Manhole with pipeline 500 - Rainwater collection chamber Outlet - Outlet of box culvert 2000x2000 - Outlet of box culvert 1600x1600

pcs

13

pcs

380

pcs pcs

1 1

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No.

Area

-

System

Items - Outlet 1500

Unit pcs

Quantity 1

- Outlet 1200

pcs

2

- Outlet 1000

pcs

5

- Outlet 800

pcs

7

- Outlet 600

pcs

3

- Outlet 400

pcs

2

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

I

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 Cross section with the existing facilities Manhole - Manhole 300 Pipeline - Pipeline 1000 - Pipeline 800 - Pipeline crossing over channels Cross section with the existing facilities Manhole - Manhole 1000 - Manhole 800 Pipeline - Pipeline 300 Cross section with the existing facilities Manhole - Manhole 300 Pipeline - Pipeline 1200

Unit

Quantity

m

7.663

m

2.836

m point

207 18

pcs

143

pcs

56

m

29.882

point

176

pcs

872

m

2.199

m

1.241

m point

62 6

pcs

44

pcs

26

m

12.413

point

23

pcs

436

m

1.623

Page 7

No.

Area Trung Tay Cat lai

Network

Grade 3

IV

Other areas

Grade 2

V

Items - Pipeline 1000

Unit m

Quantity 1.340

- Pipeline 600

m

3.190

- Pipeline 500 - Pipeline crossing channels Cross section with the existing facilities Manhole - Manhole 1200

m

1.946

m point

80 30

pcs

34

- Manhole 1000

pcs

26

- Manhole 600

pcs

66

- Manhole 500 Pipeline - Pipeline 300 Cross section with the existing facilities Manhole - Manhole 300 Pipeline - Pipeline 1500

pcs

42

m

41.165

point

102

pcs

1.196

m

1.679

- Pipeline 1200

m

3.528

- Pipeline 800

m

607

- Pipeline 600

m

1.201

- Pipeline 500

m

5.985

- Pipeline 400 - Pipeline crossing over channels Manhole - Manhole 1500

m

3.740

m

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: People’s 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

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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.

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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

VNĐ

Equipment costs

8.242.172.730

VNĐ

Compensation costs

4.469.445.384

VNĐ

Project management costs

12.760.000.000

VNĐ

Consultant costs for investment & construction Other costs

58.699.000.000

VNĐ

13.062.000.000

VNĐ

889.774.000.000

VNĐ

Construction costs

Contingency costs 1.4.2. Capital for the project.

The counter-part fund from the city budget is 280.710.789.031 VNĐ 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.

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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/QĐ-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/QĐ-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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SÔ ÑOÀVÒ

Figure 2. General layout of District 2

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. 04/2007NĐ-CP dated 08/1/2007 of the Government on Amending and supplementing a number of articles of the Government's Decree No. 67/2003/NĐ-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/QĐ-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/QĐ-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/QĐ-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/QĐ-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/QĐ-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

1

≥ 17.5

285

0.13

1,843

2.23

2,128

0.71

2

≥ 15.0

2,636

1.21

2,143

2.59

4,779

1.59

3

≥ 12.5

6,184

2.84

2,469

2.98

8,653

2.88

4

≥ 10.0

13,026

5.98

2,849

3.44

15,857

5.28

5

≥ 8.0

22,414

10.28

3,304

3.99

25,718

8.55

6

≥ 5.0

31,863

14.62

3,893

4.71

35,756

11.89

7

≥ 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

8

< 2.0

157,015

72.03

77,889

94.15

234,904

78.12

9

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/QĐ/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

Existing city center

Existing city center

2010

2015

2025

2010

2015

2025

2010

2015

2025

1

Domestic use

180

200

200

180

200

200

180

180

200

2

Public works

36

40

40

18

30

30

20

20

25

3

Visitors

35

35

35

25

25

30

20

25

30

4

Craft villages & industry

18

15

15

15

15

15

16

18

18

Page 18

Water supply norm ( L/person/day) No .

Water demand

Total

Existing city center

Existing city center

Existing city center

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/NĐ-CP dated 6/02/2013 by the Government on construction quality management; Decree no. 85/2009/NĐ-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/NĐ-CP dated 14/12/2009 by the Government on management of work construction investment expenses Decree no. 67/2003/NĐ-CP dated 13/6/2003 by the Government on environmental protection charges for waste water and Decree no. 04/2007/NĐ-CP dated 8/1/2007 amending and supplementing a number of articles of the Government's Decree 67/2003/ND-CP. Decision no. 1930/QĐ-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/QĐ/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/QĐ/TTg dated 28/10/2008 by the Prime Minster on the approval of irrigation planning for flood control in HCMC; Decision no. 24/QĐ/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-KTĐN 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-TCĐN 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 People’s Committee of HCMC on authorization for management of project investment and construction; Legal documents of People’s Committee of HCMC: Decision no. 33/2007/QĐ-UBND dated 05/09/2007 by People’s 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 People’s 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 People’s 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/QĐ-UBND dated 29/12/2012 by the People’s 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/QĐ-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/QĐ-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 ( 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 planning’s 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.

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ÑI HAØNOÄ I

L=70 i=0,7

Sub.1A

ÑI QUAÄ N1

Sub.1B

Þ 1500

L=500 i=0,7

Þ 1500

L=500 i=0,7

Þ1500

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. Þ1500

R

Þ800

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 Þ800

2,00 1,53

Sub.2A

Sub.2B

ÑI QUAÄ N1

GA THUÛTHIEÂ M DÖÏKIEÁ N

B4500

2,00 1,90

Sub.3A ÑI QUAÄ N1

Sub.3B

ÑI QUAÄ N1

Sub.3C

ÑI QUAÄ 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

ÑI QUAÄ N1 Þ1500

R

B4000

Sub.4A 2,00 1,67

2B2500

2,00 1,59 Þ800

R

B4000

2,00 1,53

Sub.2A

Sub.2B GA THUÛTHIEÂ M DÖÏKIEÁ 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

ÑI HAØNOÄ I

(1600x1600) L=70 i=0,7

2,00 0,32

Þ 1500

L=500 i=0,7

Þ 1500

L=500 i=0,7

Sub.5A

B4000

ÑI LONG THAØ 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

ÑI QUAÄ 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 ÑÖÔØ NG HAØNOÄ I

3,65 3,65

2,00 0,95

Sub.6A

2,00 1,22

CAÀ U KYØ HAØ 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 ÑÖÔØ NGHAØ NOÄ 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

R

2,00 0,84

2,00 1,79

2,00 0,75

2,00 0,80

CAÀ U KYØHAØ 4 2,00 0,54

CAÀ U KYØHAØ 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:

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Table 13. Analysis on the investment in items of drainage system NO.

Basin

Area (ha)

Features of residential areas

1

Basin 1: On the north of Hanoi Highway

365

Existing residential area

2

Basin 2: basin along Tran Nao Street

122

Existing residential area

506

Most of land is vacant. Compensation work has been done and construction has been stated in the new urban area.

3

Basin 3: Thu Thiem New Urban Area

4

Basin 4 - An Phu new urban area (a part of An Phu Ward, Binh Trung Tay Ward)

5

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.

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NO.

Basin

Area (ha)

6

Basin 6: the existing area on the East of Dong Van Cong Street (Inter-provincial Road 25B)

605.7

7

8

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 Existing residential area

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.

Common system has been established, but not 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

Common system has been established, but not yet completed

Planning orientation Existing residential area

Investment funds World Bank and State Budget

Project investors shall be in charge of 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 shall be in charge of 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

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Table 14. Scale of works under the proposed drainage system No.

System

Construction

Thao Dien

I

Area

Outlet Construction

Soth of Thao Dien

II

Items

Outlet

Unit

Quantity

Pipeline - Pipeline 1500

M

3.570

- Pipeline 1200

M

3.770

- Pipeline 1000 Outlet - Outlet 1500

M

540

Pcs

2

- Outlet 1200

Pcs

9

- Outlet 1000 Manhole - Manhole with pipeline 1500

Pcs

2

Pcs

85

- Manhole with pipeline 1200

Pcs

88

- Manhole with pipeline 1000 - Rainwater collection chamber Outlet - Outlet 1000

Pcs

14

Pcs

187

pcs

5

- Outlet 800

pcs

10

- Outlet 600

pcs

13

- Outlet 400 Pipeline - Pipeline 1500

pcs

8

m

1.493

- Pipeline 1200

m

2.406

- Pipeline 1000

m

886

- Pipeline 800 Outlet - Outlet 1500

m

1.119

pcs

4

- Outlet 1000

pcs

1

- Outlet 800 Manhole - Manhole with pipeline 1500

pcs

1

pcs

38

- Manhole with pipeline 1200

pcs

58

- Manhole with pipeline 1000

pcs

24

- Manhole with pipeline 800 - Rainwater collection chamber Outlet

pcs

28

pcs

148

- Outlet 800

pcs

6

- Outlet 600

pcs

8

- Outlet 400

pcs

2

- Outlet of open dykes B = 500

pcs

2

Page 64

No. III

Area

System

Items

Unit

Quantity

Pipeline

m

- Box culvert 2000x2000

m

701

- Pipeline 2000

m

1.610

- Pipeline 1500

m

2.612

- Pipeline 1200

m

431

- Pipeline 1000

m

4.768

- Pipeline 800

m

5.141

- Pipeline 600

m

858

- Pipeline 500

m

484

- Outlet of box culvert

pcs

1

- Outlet 2000

pcs

2

- Outlet 1500

pcs

1

- Outlet 1200

pcs

1

- Outlet 1000

pcs

1

- Manhole with culvert box Bxh (2000x2000)

pcs

15

- Manhole with pipeline 2000

pcs

36

- Manhole with pipeline 1500

pcs

58

- Manhole with pipeline 1200

pcs

12

- Manhole with pipeline 1000

pcs

107

- Manhole with pipeline 800

pcs

118

- Manhole with pipeline 600

pcs

21

- Manhole with pipeline 500

pcs

13

- Rainwater collection chamber

pcs

380

- Outlet of box culvert 2000x2000

pcs

1

- Outlet of box culvert 1600x1600

pcs

1

- Outlet 1500

pcs

1

- Outlet 1200

pcs

2

- Outlet 1000

pcs

5

- Outlet 800

pcs

7

- Outlet 600

pcs

3

Outlet Construction

Binh Trung Dong - Binh Trung Tay - Cat lai

Manhole

Outlet

Outlet

Page 65

No.

Area

System

Items - Outlet 400

Unit

Quantity

pcs

2

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

1

Domestic water

180 l/person/day

180 l/person/day

2

Public services

40 l/person/day

40 l/person/day

3

Visitors

30 l/person/day

30 l/person/day

4

Handicraft

15 l/person/day

15 l/person/day

5

Public work at under management of the city

40 m3 /ha/day

40 m3 /ha/day

6

Industrial areas

40 m3 /ha/day

40 m3 /ha/day

7

Daily coefficient of non-regulation

1,2

1,2

8

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)

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Table 18. Estimated population scale in District 2 to 2020 No.

Items

Unit

Estimated population

1

Population scale

-

Year 2015

Persons

370,000

-

Year 2020

Persons

650,000

2

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)

I

Domestic wastewater

1

Domestic usage

180 l/person

22,781.9

180 l/person

105,300.0

2

Public services

40 l/person

5,062.6

40 l/person

23,400.0

3

Visitors (25% of population)

30 l/person

949.3

30 l/person

4

Penetration amount: 10% (1+2+3)

5

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.

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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 Ø400 on Xuan Thuy Street, connecting with Sewer Ø500 on Nguyen Van Huong Street - Sewer Ø500 on Nguyen Van Huong Street along Sai Gon River - Sewer Ø400, Ø500 on Thao Dien Street connecting with Sewer Ø500 on Hanoi Highway. - Sewer Ø500 on Hanoi Highway and Sewer Ø500 on Nguyen Van Huong Street are connected to the Sewer Ø1000 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 Ø1000, Ø1200 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 Ø500 in An Phu Residential Area with 132 ha connects with pipeline Ø500, Ø600 in Nguyen Quy Duc Street (Street no. 5). - The pipeline Ø500, Ø600 in Nguyen Quy Duc Street (Street no. 5) connects with pipeline Ø600, Ø800 in Luong Dinh Cua Street. - The pipeline Ø600, Ø800 in Luong Dinh Cua Street connect with the pipeline Ø1000 in Tran Hung Dao Street toward Well G5 on Nhieu Loc – Thi Nghe Interceptor. - The pipeline Ø500 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 Ø400, Ø500 in Dong Van Cong Street, to the pipeline Ø400, Ø500 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 Ø800, Ø1000 in Nguyen Thi Dinh Street to the pipeline Ø1200 on the East Ring Road. Besides, there are some main routes in the existing residential areas as follows: - The pipeline Ø600 in Nguyen Duy Trinh Street connects with the pipeline Ø800 in Nguyen Thi Dinh Street. - The pipeline Ø600 in Nguyen Van Thinh Street connect with the pipeline Ø1200 in Nguyen Thi Dinh Street. - The pipelines Ø400, Ø500 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 Ø1200 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 - Pipeline crossing channels

Unit

Quantity

m

7.663

m

2.836

m

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 Cross section with the existing facilities Manhole - Manhole 500

Unit point

Quantity 18

pcs

143

- Manhole 400 Pipeline - Pipeline 300 Cross section with the existing facilities Manhole - Manhole 300 Pipeline - Pipeline 1000

pcs

56

m

29.882

point

176

pcs

872

m

2.199

m

1.241

m point

62 6

pcs

44

pcs

26

m

12.413

point

23

pcs

436

m

1.623

- Pipeline 1000

m

1.340

- Pipeline 600

m

3.190

- Pipeline 500 - Pipeline crossing channels Cross section with the existing facilities Manhole - Manhole 1200

m

1.946

m point

80 30

pcs

34

- Manhole 1000

pcs

26

- Manhole 600

pcs

66

- Manhole 500 Pipeline - Pipeline 300

pcs

42

m

41.165

- Pipeline 800 - Pipeline crossing channels Cross section with the existing facilities Manhole - Manhole 1000 - Manhole 800 Pipeline - Pipeline 300 Cross section with the existing facilities Manhole - Manhole 300 Pipeline - Pipeline 1200

Page 73

No.

IV

Area

Other areas

Network

Grade 2

V

Items Cross section with the existing facilities Manhole - Manhole 300 Pipeline - Pipeline 1500

Unit point

Quantity 102

pcs

1.196

m

1.679

- Pipeline 1200

m

3.528

- Pipeline 800

m

607

- Pipeline 600

m

1.201

- Pipeline 500

m

5.985

- Pipeline 400 - Pipeline crossing channels Manhole - Manhole 1500

m

3.740

m

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

2

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

2

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)

3

Areas to be acquired and compensated

A

A

B

4

Existing condition of technical infrastructure

A

A

B

5

Flood level

B

B

A

6

Construction costs x1000.000 đ

152,968

108,062

303,242

7

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

A

A

B

293,469

195,646

564,869

8

Economic/ Administrative Loss due to pollution

9

Cost for construction & maintenance

Table 22. Evaluation of the priority criteria for the sewage system with grade 3 No Criteria . 1 Population (persons)

2

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)

3

Areas to be acquired and compensated

A

A

B

4

Existing condition of technical infrastructure

A

A

B

5

Environmental pollution level

B

B

A

6

Construction costs x1000.000 đ

170,369

71,250

234,664

7

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

A

A

B

270,679.8

180,453.2

438,350.6

8

Economic/ Administrative Loss due to pollution

9

Cost for construction & maintenance

Table 23. Evaluation of the priority criteria for the sewage system with grade 2 No.

Criteria

1

Area 1

Area 2

+ Existing

29223.8

40366.28

+ Planning

143140

198200

Population (persons)

2

Areas to be acquired and compensated

A

B

3

Existing condition of technical infrastructure

A

B

A

B

196,212

230,269

+ Existing

6.71411

5.70450

+ Planning to 2020

1.37077

1.16180

B

A

416,674.7

491,283.9

Existing condition of flood/ environmental pollution

4 5

Construction costs x1000.000 đ

6

Project costs per capita (x 1000.000 vnd/person)

7

Economic/ Administrative Loss due to pollution

8

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

Areas to be acquired and compensated B

2

Existing condition of technical infrastructure

3

Existing condition of flood/ environmental pollution

4

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

Areas to be acquired and compensated Existing condition of technical infrastructure 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

DÖÏ AÙ N VEÄSINH MOÂ I TRÖÔØ NG NÖÔÙ C GIAI ÑOAÏN II / WATER SANITATION STAGE II ÑAÀ U TÖ XAÂ Y DÖÏNG MAÏNG LÖÔÙ I THOAÙ T NÖÔÙ C CAÁ P II - III TREÂ N ÑÒ A BAØ N Q.2 / CONSTRUCTION INVESTMENT DRAINAGE NETWORK L EVEL II-III IN DISTRICT 2

BAÛ N ÑOÀPHAÂ N KHU VÖÏC ÖU TIEÂ N ÑAÀ U TÖ / PRIORITY REGIONINVESTMENT MAP QUAÄ N BÌNHTHAÏNH

ÑI H A ØN I Ä O

Ñ IT HAN HÑA

S ÔÑOÀPHAÂ NKHU Þ150

PHÖÔØNG THAÛOÑIEÀ N

T Ỉ LỆ - S CALE:

R

1 /10.000

Ñ IT HAN HÑA

2, 0 1, 8 6

40 50

R AÑÖ ÔØ NG HAØNOÄ I

11 0

1

36

2 -4 5

31 80

5

62

22 50

11 0

20 4

18 00

1A

2 -4 5

11 0

16 2

800

1B

250

2 -4 5

20 3

2

12 5

20 3

4

51 5

2 -1 5

40

3 -3 5

3 -3 5

1305 0

6

21 5

QUAÄ N BÌNHTHAÏNH

85 00

3 SA ÂNG OL F RA Ï C HCH C Á IE

16 8

1, 9 4

70 . 2 0

PHÖÔØNG ANPHUÙ

14 0

25700

K HUL IEÂ N HÔÏ PTD TTR AÏCH CHIEÁ C

5A

ÑI Q UA ÄN 1

62

60 5

3 -3 0

52 4

5 -5 0

2, 0

7

50

2 -2 5

42 . 0

416

8

51

81 8

2 -2 0

2-15

R

ÑI L ON GT H AØ H N

ÑI Q UA ÄN 1

65000

4A

203

6100

322

QUAÄ N9

99

5B 62

3-35

D AÂN SO Á(n gö i) ø ô

2-15

D IE Ä N T ÍC H(Ha ) 95000

5 M AÄT ÑO ÄDA Â N S OÁ( ng ö i/Ha ø ô ) R

PHÖÔØNG BÌNHAN 11000

2A

203

54

3-35

14500

50

620 3-25

T EÂ NK HUÔÛ T AÀ NG CAO (Taà ng)

ÑI Q UA ÄN 9

K HUV ÖÏC ÖUT IEÂ N CAÁP1

71

K HUV ÖÏC ÖUT IEÂ N CAÁ P2

2B 203

3-35

ÑI Q UA ÄN 1

GA T HU ÛT H I E Â MD ÖÏ K N Á IE RA NHP HA ÂNL U Ö

RA NHQ UA ÄN 2

RA NHT HA ØN HP H OÁ H OÀ C HÍ M H IN

110.000

PHÖÔØNG BÌNH TRÖNGTAÂ Y 15000

510

RANH

6B 215

QUAÄ N1

G IA O T HO ÂN GÑO ÁI N GO A ÏI H IE Ä U Õ Ö H N

PHÖÔØNG BÌNH TRÖNGÑOÂ NG

78

G IA O T HO ÂN GÑO ÁI N GO A ÏI D Ö N Á IE ÏK

4B 203

PH G N Ø Ô Ö

ÑA ÁTS OÂ NG, R A ÏC H , A À H O

3-30

G IA O T HO ÂN GC H Í N HÑO ÂTH Ò H IE Ä U Õ Ö H N

3-35

G IA O T HO ÂN GC H Í N HÑO ÂTH ÒDÖ Ï K N Á IE

PHÖÔØNG BÌNH KHAÙ NH G IA O T HO ÂN GK H UVÖ Ï CH I E ÄN U Õ Ö H

30000

R

178

G IA O T HO ÂN GK H UVÖ Ï CD ÖÏ K N Á IE

3A

PHÖÔØNG AN KHAÙ NH

168

QUAÄ N9

RAÑ ÖÔ ØN GHA ØN I Ä O

G IA O T HO ÂN GNO ÄI B OÄ K Û Ô U H

5-50

ÑÖ ÔØ NGS AÉ T

ÖÏ K D N Á IE

ÑI Q UA ÄN 1

20500

6A

215

95

3-30

RAÑ ÖÔ ØN GHA ØN I Ä O

K HUT RUNG TAÂMHA Ø NH CHÍN HQU AÄ N2 25000

3B 168

149 K HU ÑOÂTH Ò M ÔÙ I TH UÛTHIEÂ M

5-50

PHÖÔØNG CAÙ TLAÙ I BA NCH ÆH U Y BO ÄÑO ÄI B I E Â NP G N Ø O H

PHÖÔØNG THUÛ THIEÂ M 70.200

500

6

4 140 30000

179

51

2-25

818

BO Ä T ÖL EÄ NHH AÛ I Q N Â A U

2-20

QUAÄ N7

3C 168

L Ö ÕÑO AØ N1 5 2

42.000

PHÖÔØNG AN L ÔÏIÑO NG Â

5-50 R

CO ÂN GT Y T AÂ NCA G N Û

TR ÖÔ ØN GT R UN GHO ÏC

K HUC OÂ NG NGH IEÄ P CUÏ M2 CAÙ T LAÙ I

ÑI Q UA ÄN 4

KH OX A ÊN GDA À UC A Ù TL I Ù A

HA ÛI Q UA N Â

PHÖÔØNG THAÏNHMYÕ LÔÏI CA ÛN GC A ÙT I Ù A L

QUAÄ N4

NH A ØM AÙ YL O Ï CD AÀ US A ØI G OØ NP L O R T E

BE ÁNP HA ØC A ÙT I Ù A L

TR A ÏM Ñ A ÀUM I Á O ÑI Q UA ÄN 7

XI M AÊ NGS A OM I A

CA ÀUK Y ØH 4 Ø A

CA ÀUK Y ØH 1 Ø A

KH UXÖ ÛL Y ÙNÖ ÔÙ C T I Û A H

PH OØ NGC AÛ NHS T Ù A ÑÖ ÔØ NGT HU Y Û

B ẢN VẼ:

BAÛ N ÑOÀP HAÂNL ÖU VÖÏCT HOAÙ T NÖÔÙ C MÖA / DE VIDE BASI NDRAI NAGE MAP

Ñ IQU AÄ 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

8

114,343,978,018

320,965,743,538

134,508,765

1

Entire are of Thao Dien Ward

6195

16250

0

106,046,010,000

278,167,500,000

-

2

A part of An Phu Ward

485

2500

8

8,297,968,018

42,798,243,538

134,508,765

Area 2

4268

9500

0

73,059,624,000

162,621,000,000

-

4268

9500

0

73,059,624,000

162,621,000,000

-

9342

22722

150

159,922,377,915

388,955,026,650

2,561,620,326

1

Entire area of Binh An Ward Area 6

17,118,000

1

Entire area of Binh Trung Dong

4734

11985

64

81,036,494,237

205,155,681,612

1,094,163,635

2

A pat of Binh Trung Tay Ward

3752

5668

68

64,234,977,601

97,031,688,219

1,164,380,259

3

A part of Thanh My Loi Ward

253

1696

10

4,333,335,733

29,030,833,405

164,508,056

4

A part of Cat Lai Ward

603

3373

8

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

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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 Government’s 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

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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;

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- Decree 81/2006/NĐ-CP. Decree 81/2006/ND-CP of August 9, 2006 on sanctioning of administrative violations in the domain of environmental protection; - Decree no. 04/2007NĐ-CP dated 08/1/2007 of the Government on Amending and supplementing a number of articles of the Government's Decree No. 67/2003/NĐ-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 Government’s 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 Government’s 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 Government’s Decree no. 59/2007/NĐ-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 Government’s 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;

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- 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.

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Table 24. Schedule of environmental report Phases

Implementation

The report on Environmental Impact Assessment (in the project preparation phase) The report on Environmental Monitoring in the construction phase The report on Environmental 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 Government’s Decree Department 80/ND-CP 08/TT-BTN & Circular 08/TT-BTN&MT. Regarding

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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

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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

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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/QĐ-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 State’s 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 VNĐ. 4.1.2. Total investment cost.

Table: .... Summary of work construction cost estimate No

Description

Cost after tax

I

CONSTRUCTION COST

1,737,551,000,000

1

Construction cost of main works

1,737,550,629,164

II

EQUIPMENT COST

III

PROJECT MANAGEMENT COST (ĐMx GXDTT)

12,760,000,000

IV

CONSULTANTCY COST FOR CONSTRUCTION INVESTMENT

58,699,000,000

1

Cost of investment project preparation

8,242,172,730

2,496,483,707

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2

Cost of investigation for investment project preparation

3,058,727,664

3

Cost of investigation for construction drawings design

17,606,223,000

4

Cost of construction drawing design

18,408,690,689

5

Cost of appraisal for efficiency & feasibility of the project

272,692,894

6

Cost of appraisal for construction drawings

689,588,157

7

Cost of appraisal for total cost estimate

659,909,679

8

Cost of Contractor selection

472,613,771

9

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

V

OTHER COSTS

1

Fee for appraisal of work construction investment project

50,000,000

3

Fee for construction drawing design

108,982,305

4

Fee for appraisal of total cost estimate

114,000,000

5

Fee for appraisal bidding results

30,000,000

6

Audit cost

2,466,542,012

7

Fee for appraisal, approval and final payment

1,563,896,073

8

Fee for work assurance

8,728,964,009

VI

COST FOR SITE CLEARANE COMPENSATION

4,469,445,384

VII

CONTINGENCY COST

1

Contingency due to arisen quantity (10%)

2

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 city’s People Committee. ODA funded by the World Bank shall be used for construction and equipment installation. Counterpart fund of the city’s 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.

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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

I

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

V

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

1

Contingency due to arisen quantity (10%)

2

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

1

2013 -2014

Preparation work for investment

2

2015

Construction of waste water and rain water collection system in the area of Binh Trung Dong- Binh Trung Tay- Cat Lai + Connection

3

2016

Construction of waste water and rain water collection system in

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Thao Dien area 4

Construction of waste water and rain water collection system in 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

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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

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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 haven’t 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

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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

I

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

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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

0

-

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 VNĐ/1 m3 of waste water at the time of 2013 Sewage charge increase schedule.

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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.

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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 City’s 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.

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The Government of Vietnam State Bank, Ministries, Sectors

HCM city’s People Committee HCM city’s 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 City’s 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 city’s 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.

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- 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 Minister’s 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 city’s 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 city’s 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.

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+ 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

1

Preparation of work construction investment project

June, 2013

2

Appraisal from governmental agencies (ministries and sectors August, 2013 under the Government), amendment of the project

3

Submission to WB for appraisal

October, 2013

4

Appraisal delegation of WB come to HCM city for survey

November, 2013

5

Project completion

December, 2013

6

Letter of project acceptance of WB

January, 2014

7

Preparation of bidding documents (EPC), submission to WB for March, 2014 approval

8

Bidding evaluation, approval of bidding results, negotiation for May, 2014 signing the Contract

Page 100

9

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

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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. Bidding form: International Competitive Bidding Bidding method: 01 document package 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. Bidding form: International Competitive Bidding Bidding method: 01 document package Time to be scheduled: 3/2014. 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 Bidding form: International Competitive Bidding Bidding method: 01 document package Time to be scheduled: 6/2014. 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 Bidding form: International Competitive Bidding Bidding method: 01 document package Time to be scheduled: 6/2014. 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. Bidding form: International Competitive Bidding Bidding method: 01 document package Time to be scheduled: 6/2014. d. Contract package 07: Provision and installation of equipment, training waste water pumping station operation.

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Description of contract package: Provision and installation of equipment, training waste water pumping station operation. Bidding form: International Competitive Bidding Bidding method: 01 document package Time to be scheduled: 12/2014. 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 Bidding form: International Competitive Bidding Bidding method: 01 document package 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. Bidding form: International Competitive Bidding Bidding method: 01 document package Time to be scheduled: 4/2015. 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. Bidding form: International Competitive Bidding Bidding method: 01 document package Time to be scheduled: 4/2015. 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 Bidding method: 01 document package Time to be scheduled: 4/2013. 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 form: International Competitive Bidding Bidding method: 01 envelope Time to be scheduled: 4/2016. 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.

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Bidding form: International Competitive Bidding Bidding method: 01 document package Time to be scheduled: 10/2017.

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

A

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

3

Protection

B

Package

1

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

2

3

4

Wastewater tariff (VND)

6,000

6,900

7,935

9,125

10,494

Population (persons) 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 (1000vnđ)

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%

6

7

8

9

5

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

1

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 -

3

Operation & construction costs

4 5

403,218

403,218

Gross profit CIT

(401,853) -

(401,625) -

(401,359) (401,047) (400,684) -

6

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

7

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 VNĐ)

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: People’s 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)

vnđ

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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

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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.

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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.

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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

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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.

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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

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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,

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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

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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.

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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.

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