Study on Economic Partnership Projects
in Developing Countries in FY2007
Study on the Realignment of Motorway M-2 in Salt Range
Area , in Pakistan
SUMMARY
March 2008
CENTRAL CONSULTANT INC．
NIPPON STEEL CORPORATION
NIPPON STEEL ENGINEERING Co.,Ltd.
TOBISHIMA CORPORATION
SUMMARY
1. Necessity of the Project
(2) Background of the ProjectMaintaining high economic growth is the top priority policy of the Government of Pakistan. Given the importance of the road network as basic infrastructure supporting economic growth, its development should proceed without delay to ensure sufficient capacity for the traffic demand.
The Islamabad Capital Territory in Punjab Province is not only the political center, but is also the agricultural and mining/industrial center of Pakistan. Both traffic demand and traffic volume are high. However, there are only two trunk roads: the M-2 Motorway (6 lanes) and National Highway N-5 (4 lanes), on the main transportation corridor between Islamabad/ Rawalpindi and Lahore. In addition, a Salt Range section of the M-2 going towards Islamabad has a 7% gradient, which is extremely difficult for heavy trucks and trailers to climb, thus constraining its functions as a cargo transportation route..
(3) Necessity of the Project
The Project Road, M-2, is one of two trunk roads connecting Islamabad/Rawalpindi and Lahore. The other trunk road, National Highway N-5, functions as the main road between the two large cities. However, widening the N-5 would be difficult because it passes through many urban and built-up areas. Also, the National Highway Authority (hereinafter referred as “NHA”) recently introduced a toll system and axle load inspection for commercial vehicles on major national highways, and both programs have already been implemented on the N-5. As a result, the merits of taking the N-5 instead of the M-2 have been reduced.
However, major problems at the Salt Range section of the M-2, which include frequent traffic accidents and natural disasters, as well as the difficult climb for cargo vehicles on the steep gradient toward Islamabad, still exist. Therefore, in order to cope with future increasing traffic demand on the transportation corridor between Islamabad/Rawalpindi and Lahore, it is necessary to solve the problems in the Salt Range section of the M-2 and to secure traffic capacity of 6 lanes for the entire section of M-2.
(4) Basic Policy of the Government of Pakistan for Implementation and Contents of the Project The Government of Pakistan understood the problem of road alignment in the Salt Range section shortly after the M-2 opened in 1997. Consequently, the NHA conducted three studies to examine possible realignment; however, the plans did not include large-scale bridges and a tunnel, and the total length of realignment was greatly extended due to a large-scale detour; hence, the
improvement plans were not accepted.
Within the mid-term development framework and National Trade Corridor (hereinafter referred as “NTC”) Improvement Programme (hereinafter referred as “NTCIP”), NHA has placed priority on solving the problems in the Salt Range section of the M-2, and has requested that the Japan External Trade Organization (hereinafter referred as “JETRO”) conduct a feasibility study.
During the course of the Study in Pakistan, the Study Team confirmed with NHA and the Ministry of Communications (hereinafter referred as “MOC”), that NHA would submit a request to the Government of Japan for financial assistance in executing the Project, if technical and economic feasibility could be established.
2. Contents and its Technological Feasibility
The main object of the Project is realignment of the problem section on the existing motorway, with the Study including the following items:
◇ Traffic demand forecast
◇ Analyses of problems of the existing motorway section ◇ Analyses of proposed realignment studies carried out by NHA
◇ Preliminary route alignment study based on geographical maps, aerial photos, and site investigation
◇ Geographical survey along proposed realignment route, geological and geotechnical investigation at proposed site of large-scale structures, and initial environmental examination (hereinafter referred as “IEE”)
◇ Technical studies on proposed realignment plan ◇ Economic evaluation of proposed realignment plan
2.1 Traffic Demand Forecast
Since the M-2 is part of the trunk road network in Pakistan, the traffic demand forecast in the Study should be carried out based on the traffic demand forecast of the trunk road network across the whole country. Therefore, reference was made to the results of traffic demand forecast of the NTC Traffic Study. In addition, the Study Team has verified that the traffic capacity at the Salt Range Section of M-2 will decrease and this section become a bottleneck in the future if existing alignment will not be improved. Results of the future traffic demand forecast for the Salt Range section of the M-2 are summarized in Table 1.
Table-1 Results of Traffic Demand Forecast for the Project Road （Unit: vehicle） Year Growth Rate Passenger Car
Minibus Bus Truck 2-axles Truck 3-axles Trailer Total 2005 - 5,411 1,313 2,520 592 235 38 10,109 2015 3.6 19,480 4,727 9,072 2,131 846 137 36,393 2020 6.2 33,548 8,141 15,624 3,670 1,457 236 62,676 2025 9.5 51,405 12,474 23,940 5,624 2,233 361 96,036
2.2 Identification and Analyses of Problems to Examine and Determination of Project Contents
(1) Present Conditions at the Study Area
◇ The length of the Project road is about 10 km with a difference in altitude of 428 m, hence the average gradient should be 4.28%. However, there is a section with a reverse grade and there are three sections with a maximum road gradient of 7%. In addition, there are five sharp curves with a minimum radius of less than 100 m.
◇ Due to very complex horizontal and longitudinal alignment, the design speed of the M-2 in the Salt Range section is 50 km/h compared with 120 km/h at flat terrain and 90 km/h at rolling terrain, as defined in the Highway Design Standard for Motorways in Pakistan. In addition, the 7% road gradient toward Islamabad (north bound lanes) is too steep to climb for many cargo vehicles and they generally switch to the N-5. Also, cargo vehicles traveling in the opposite direction toward Lahore (south bound lanes) must reduce their speed to between 5 and 10 km/h.
◇ Traffic accident black spots on the Project road are concentrated at two locations on the south bound lanes: km 223-224 and km 229. The main cause of these accidents is the combination of a 7% down gradient and sharp bends with a curve radius of less than 100 m. At the same time, most of serious traffic accidents at these two black spots involved large size vehicles.
◇ Since the geological conditions of the Study area are very unstable, there are frequent natural disasters. The main disasters are erosion of the limestone cliffs and large-scale landslides around km 230 and small-scale landslides at km 223 and km 228. Even though NHA has implemented various countermeasures, including construction of retaining walls, securing of a buffer zone (pocket) behind the retaining walls, improvement of drainage
facilities at the lower edge of slopes, etc., it is impossible to completely prevent natural disasters from affecting M-2 traffic. In addition, there is undulation of pavement at km 224-225, the cause of which is not clear.
(2) Analyses of Route Realignment Study Carried Out by NHA
Shortly after the completion of the M-2 in 1997, NHA carried out three studies on the realignment of the Salt Range section of the M-2. However, these studies did not take into account structures such as long-span bridges and a tunnel. As a result, the total length of planned realignment was greatly extended with a large-scale detour to ease the vertical alignment. In the latest Study, the length of the recommended route is 31 km, which is 21 km longer than the existing alignment, and the project cost is estimated at Rs. 4.9 billion. The major problems identified by the Study Team for this recommended realignment plan are as follows:
◇ Even though the maximum design gradient is 4%, there are continuous sharp bends that require reduced speed; hence, it is impossible to secure the functions of a motorway. ◇ Even though the realignment is considered to pass through locations with the minimum
requirement of structures, continuous high retaining walls are necessary. In addition, the original terrain is very steep and large-scale excavation of foundation would be required, making the actual construction very difficult.
.
2.3 Examination of Engineering Method Applied for the Study
The main objective of the Study was to examine the route realignment of the Salt Range section of the M-2 applying Japanese technology as requested by NHA. Therefore, it is necessary to propose the most suitable plan employing a tunnel and high pier steel girder bridges, which have rarely been implemented in Pakistan. Also, NHA has concerns about the large extension of road length by realignment, since users tend to avoid longer routes. Hence, NHA is not satisfied with the previous realignment plan.
After analyzing the present conditions and problems of the Study area, the Study Team employed the following planning policy. In addition, transition (clothoid) curves are applied at both ends of curves in order to secure smooth driving.
◇ Policy for improvement of south bound lanes
－ If alignment of the entire stretch of both south and north bound lanes were to be improved, the total project cost would be extremely high. On the other hand, traffic safety could be achieved if steep combination gradients were eased and sharp S-shaped curves (hair-pin curves) could be avoided by adopting larger-radius horizontal curves, even though the steep gradient would remain.
－ Traffic accident black spots are concentrated at locations with a combination of 7% down gradient and sharp bends with a curve radius of less than 100 m. Therefore, improvement of sharp bends is one of the targets in the Study. Hence, partial realignment to avoid problem sections (km 223-225 and km 229-231) is proposed for the south bound lanes.
－ Since natural disasters such as rock falls and landslides mainly occur on the slopes next to the south bound lanes, countermeasures can be achieved by shifting the south bound lanes to the existing north bound lanes, securing a certain distance from the slopes.
－ From the above-mentioned points of view, the Study Team proposes an improvement plan of the south bound lanes for maximum utilization of existing carriageway, including the existing north bound lanes, to improve the minimum radius of sharp bends, with the same down gradient.
◇ Policy for improvement of north bound lanes
－ In order to avoid a reduced climbing speed of cargo vehicles of not less than 45 km/h with a design speed of 90 km/h, a completely new alignment is proposed with a maximum gradient of 4% or less, since the entire stretch is uphill.
－ In order to apply the 4% maximum gradient, it is necessary to secure sufficient road length. However, since the proposed alignment involves passing through steep topography, a minimum curve radius of 300 m is applied to cope with the design speed of 90 km/h.
－ To satisfy the design conditions, high embankments, high pier bridges and a tunnel are employed.
－ In order to reduce the Project cost, utilization of north bound lanes as an exclusive large size vehicle lanes was also considered.
2.4 Outline of the Project
(1) Basic Policy for Determining the Project Contents
◇ The geometric design standard defined in “Road Standards in Pakistan” (NHA, Feb. 1992) is employed in the Study. Since the Study Area is hilly terrain, a design speed of 90 km/h is employed.
◇ Even though the geometric design standard and typical cross sections of design speed of 90 km/h are applied in general, values less than the minimum standard are applied as absolute values at sections with geographical constraints. Also, slope protection is applied for cut slopes, if required, in consideration of extremely adverse topographical and
geological conditions.
◇ In the Study, realignment plans are examined in three stages based on existing study reports and data/information. Then, preliminary design is carried out for the route selected in the second stage of the Study.
(2) Route Realignment Plan
In the route realignment plan, based on the results of the site investigations, topographical surveys and boring surveys, the most appropriate realignment plans, as described below, have been selected in order to solve problems of M-2 in the Study Area (Frequent traffic accidents, natural disaster, and difficulty of climbing of the north bound lanes by goods vehicles.
◇ The improvement plan for the south bound lanes involves partial realignment at existing sharp bend sections with the adoption of larger-radius horizontal curves. Also, efforts are made to avoid a 7% gradient at sections with small-radius curves during realignment planning.
◇ In order to balance the cut-and-fill earth volume, horizontal alignment is set at the upper side of the mountain at the lower part of the Salt Range section. At the section where new alignment crosses the river, alignment is set to cross the upper stream in order to minimize the scale of bridges by avoiding a long-span bridge. At the section where the proposed alignment crosses over the existing M-2, alignment is set at the eastern side of the existing south bound lanes to minimize the height of the piers of the proposed continuous bridges. For determination of gradient, maximum gradient of 3% is adopted for the tunnel section, while the absolute maximum gradient of less than 5% were adopted for earth work sections and bridge sections where maximum gradient was determined by securing climbing speed of goods vehicles not less than a half of the design speed.
◇ In the Study, the improvement plans of partial realignment of existing M-2 for the south bound lanes and new realignment for the north bound lanes with 3 lanes each were planned and proposed to NHA during the explanation of the Draft Report. However, due to high project cost, NHA has requested the Study Team to consider the new alignment with 2 lanes exclusively for goods vehicles. According to the request of NHA, the Study Team has selected additional alternatives, and technical and economical feasibility of alternatives shown in Table-2 have been studied.
◇ At this stage, in order to respond to the comment from NHA during explanation of the Draft Report, the cross-sectional elements of new realignment section are determined with 2 lanes and the route alignment improvement planning, bridge planning, and tunnel planning have been carried out.
Table-2 Alternatives for the Route Realignment Plan
Alternative Improvement Contents Project Cost Accident Prevention Natural Disaster Prevention Measures for North Bound Goods Vehicles
Alternative-1 * New realignment of the north bound lanes with 3 lanes. * Partial realignment of the south
bound lanes with 3 lanes.
High Good Good To secure minimum speed of 45 km/h for the north bound goods vehicles. Alternative-2 * New realignment route with 2
lanes exclusively used for the north bound large size vehicles. * Partial realignment of existing
M-2 with 5 lanes, i.e., 2 lanes for the north bound traffic except large size vehicles and 3 lanes for the south bound traffic.
High Good Good To secure minimum speed of 45 km/h for the north bound goods vehicles.
Alternative-3 * New realignment route with 2 lanes exclusively used for large size vehicles of both directions by two-way movement. In this case, provision of climbing lanes at earthwork sections are proposed for the north bound lane, in order to minimize effects of slow moving goods vehicles for orderly traffic flow. * Limited improvement of sharp
horizontal curves within the existing 6 lanes width.
Medium It is possible to prevent traffic accident of the south bound traffic. However, there is a new risk of head-on collision.
Possible To secure minimum speed of 45 km/h for the north bound goods vehicles.
Alternative-4 * Partial realignment of the existing carriageway of both directions with 6 lanes.
Low Good Good No improvement
Note: The comments for the Project Cost are the results of comparison of costs between the Route Realignment Study carried out by NHA and alternatives in the Study.
◇ For the bridge planning, two long span bridges are planned at sections where long span bridges judged as necessary from horizontal and vertical alignment study. At the lower part of the Salt Range Area, a three span continuous composite steel girder cable stayed type bridge is proposed, while continuous composite steel girder bridges are proposed for the location where new alignment crosses over the existing M-2.
◇ Large-diameter caisson piles are selected for the substructures of the main towers of a cable-stayed bridge, and either large-diameter caisson piles (diameter of 15 m) or board piles (diameter of 1.3 m) with steel casing are selected as the most suitable type for foundations for these two types of bridges. Note that large-diameter caisson piles are rather difficult to construct at locations with ground water.
◇ For the tunnel planning, one tunnel with length of 1,150m is proposed at the center part of the north bound lanes. Design speed in the tunnel section is set as 60 km/h, since it is planned as exclusively used by large size vehicles. Upper heading composed of three circles shape is proposed to consider the economic point of view. For the geometric design and cross sectional elements, horizontal curve radius is set as 750 m, vertical gradient is set as 3.0%, cross slope is set as 5.0% (lower at right side), and shoulder is set as 0.3 m as same as the Kohat Tunnel. For determination of track clearance. To consider condition of exhaust gas emission of heavy vehicles in Pakistan, spaces to install two sets of jet fans (1,250mm diameter) are secured as room for ventilation facilities.
(3) Result of Preliminary Design
Based on the comparison of realignment plans mentioned above, preliminary design of the road sections, bridge sections and tunnel section was carried out. At this stage, design works were carried out on basis of 2 lanes for the new realignment section and 5 lanes for the partial realignment sections, in order to respond to the comment by NHA.
(4) Preliminary Construction Cost Estimation
Based on the results of the preliminary design, the preliminary construction cost of each alternative is estimated as shown in Tables 3. In this cost estimation, the ratio of materials/others procured from Japan is more than 30% except Alternative-4.
Table-3 Results of Preliminary Cost Estimation for Alternatives
Alternative Cost in Pakistan (Rs.)
Cost of Materials and others Procured from
Japan (Yen)
Total (Rs.)
Alternative-1 7,806,974,200 9,941,718,052 12,777,833,226
(Cost from Japan) (38.9%)
Alternative-2 7,242,179,937 6,557,033,467 10,502,696,671
(Cost from Japan) (31.2%)
Alternative-3 5,369,537,992 5,966,549,851 8,352,812,918
(Cost from Japan) (35.7%)
Alternative-4 2,698,776,635 738,104,520 3,067,828,895
(Cost from Japan) (12.0%)
Figure-1 Route Realignment Plan of Alternative-2
Partial realignment section
L=2,030m
Max. gradient=7%
Min. curve radius=250m
Partial realignment section
L=1,250m
Max. gradient =7%
Min. curve radius =230m
New realignment section
L=15,718m
Ave. gradient=4.0%
Max. gradient=5.0%
Min. curve radius=300m
3. Environmental and Social Feasibility
(1) Standard Requirements for Initial Environmental Examination and Environmental Impact Assessment
Pakistan requires an Environmental Impact Assessment (hereinafter referred as “EIA”) for national and provincial highway or major road projects, except in the case of maintenance, rebuilding or reconstruction of existing roads, with a total cost of Rs. 50 million or more. Since the total cost of the Project greatly exceeds Rs. 50 million, it will be necessary to carry out an EIA after completion of the F/S, even though there are no environmental or social factors to be considered. As the Project site is about 15 km of motorway in the Salt Range located in Punjab Province, NHA is responsible for reporting to the Environmental Protection Department of the Punjab Provincial Government for approval of project implementation.
(2) Responsibility of the Government of Pakistan for Execution of the Project
◇ NHA will hire a consultant to carry out the EIA and clarify items affecting the environment as well as their area and scale of influence. Then, NHA will prepare an EIA report, including an environmental management plan, and submit it to the Environmental Protection Department of the Punjab Provincial Government. After reviewing the EIA report and analyzing the results of public consultation with local residents and related agencies, the Punjab Government will issue an authorization for execution of the Project (Approval of EIA).
◇ During the course of the Project implementation, a private contractor will be awarded the contract for implementing the mitigation measures. NHA together with the Deputy Secretary of Environment and supervising consultant, will control and monitor the implementation of mitigation measures.
◇ After completion of the Project, the realigned route will be opened to traffic, and NHA will be responsible for the execution and control of environmental mitigation measures together with the Environmental Protection Department.
◇ With cooperation from the supervising consultant, the Environmental Cell of NHA will carry out an environmental monitoring plan during the construction period. The Environmental Cell is responsible for executing the monitoring program. According to the plan, NHA should lease an authorized laboratory to monitor air quality, water quality and noise level. At the same time, NHA is required to hire a consultant to train their staff in performing environmental monitoring functions. Also, the Environmental Protection Department of the Punjab Provincial Government, authorized by the “Pakistan
Environmental Protection Agency Regulation, 2000”, will monitor the progress of the Project, as authorized by regulation in 2000, in order to confirm that project execution is in line with the requirements stipulated by the Pakistan Environmental Protection Act. ◇ NHA staff has the experience and capabilities required for implementing environmental
mitigation measures, as well as an understanding of the various parameters for environmental monitoring. However, in order to ensure environmental control and monitoring according to the EIA and implementation of the environmental monitoring plan, NHA staff should take the training as well as study the required knowledge. Therefore, NHA staff will receive assistance and training from the consultant in the appropriate method for sampling, testing, analyses and recording of required items for environmental monitoring.
◇ At the site, NHA should carry out public consultation related to the Project. All residents should be included in the consultation. An explanation of the Project and discussions should be carried out with persons from local government and related agencies, and minutes should be prepared. Also, public consensus of the persons involved should be reflected in the final plan of the Project.
◇ Improvement of the M-2 will require land acquisition and compensation. The unit price of land and the land acquisition cost will be determined by the Government of Punjab who will notify the NHA of the amount calculated for land acquisition. NHA will secure the budget for the finalized land acquisition cost and transfer it to the Punjab Provincial Government. Land acquisition will then be implemented. In addition, coordination of rights and interests of land owners are handled by the Punjab Provincial Government.
4. Economic Feasibility
4.1 Estimation of Project Cost
The total cost of the Project are calculated for 4 alternatives proposed in Chapter 3 based on the following costs. Currencies used in the calculation of Project cost are Pakistani rupees and Japanese yen. The exchange rate adopted is Yen 1.0 = Rs. 0.5.
◇ Engineering Cost : 8% of Direct Construction Cost ◇ Administration Cost : 1% of Direct Construction Cost ◇ Compensation Cost : 1% of Direct Construction Cost ◇ Land Acquisition : 1% of Direct Construction Cost ◇ Contingency : 10% of Direct Construction Cost
Table-4 Project Cost for 4 Alternatives
(Unit: Million Yen)
Cost Item Alternative-1 Alternative-2 Alternative-3 Alternative-4
(1) Direct construction cost 25,903 22,074 15,805 6,269
(2) Engineering cost (1)の 8% 2,072 1,766 1,264 501
(3) Administration cost (1)の 1% 259 221 158 63
(4) Compensation (1)の 1% 259 221 158 63
(5) Land acquisition (1)の 1% 259 221 158 63
(6) Contingency (1)の 10% 2,590 2,207 1,581 627
Total Project Cost 31,342 26,710 19,124 7,586
Expressed in million Rs. 62,684 53,420 38,248 15,172
Note : Prices are as of December 2007.
4.2 Overview of Economic Evaluation
(1) Premises of Economic Evaluation
◇ Future traffic volume estimated in this Study was adopted for this evaluation up to the year 2033
◇ Regarding implementation of the Project, some surveys and detailed design work will start in 2010, and construction will start in 2011 to be completed in 2014. For this evaluation, construction cost is divided proportionally over 4 years.
◇ Prices in the evaluation are as of December 2007, and the foreign exchange rate adopted is Yen 1.0 = Rs 0.5.
(2) Estimation of Benefit
The following economic benefits are expected from implementation of the Project: － Vehicle operating cost (hereinafter referred as “VOC”) savings
－ Vehicle travel time savings
－ Avoidance of fatalities by means of reducing accidents
－ Savings in recovery cost of accidents and in traffic control cost － Improvement in traffic safety and driving comfort
Economic benefits treated in this evaluation include vehicle operation cost savings and travel time savings for which a steady method was established for calculations expressed in monetary terms. In calculating the economic benefits, since the future traffic volume on the M-2 Motorway includes traffic converted from National Highway N-5, benefits will be derived from both the original traffic on M-2, and the converted traffic.
the data from several other reports on road and highway projects and transportation projects in Pakistan.
Using the unit value of VOC by vehicle type, time value by vehicle type and future traffic volume, economic benefits were estimated for the 20-year period from 2015 to 2034 comparing “With” with “Without” cases after calculating the total annual traveling time and total annual VOC. Annual benefit amount is shown in Table-5.
Table-5 Annual Benefit Amount
(Unit : Million Rs.)
Year VOC Saving Travel Time Saving Total
Alternative-1 2015 981 722 1,683 2025 2,777 2,260 5,037 2034 6,222 5,223 11,445 Alternative-2 2015 793 722 1,515 2025 2,341 2,260 4,601 2034 5,292 5,223 10,515 Alternative-3 2015 542 459 1,001 2025 1,477 1,277 2,754 2034 3,228 2,820 6,048 Alternative-4 2015 156 130 286 2025 438 382 820 2034 971 860 1,831 (3) Result of Evaluation
To evaluate the Project, annual benefit and cost amount during the evaluation period was discounted into the present value at a rate of 12%, and cash flow analysis was conducted to judge the feasibility of the Project, using the estimated benefits and calculated costs. The results of evaluation prove that 4 alternatives are feasible. The 12% discount rate is used in several transportation project reports and road and highway reports, and is judged to be reasonable.
Table-6 Result of Evaluation
Index Alternative-1 Alternative-2 Alternative-3 Alternative-4
EIRR 17.0% 17.7% 16.0% 12.9%
NPV（million Rs.） 5,581 5,675 2,544 246
(4) Sensitivity Analysis
Generally, project circumstances will fluctuate according to future social and economic conditions. Accordingly, sensitivity analysis of Alternative-2, with highest EIRR, was conducted for the case of a 10% increase and 20% increase in Project cost, and for the case of a 10% reduction and 20% reduction in benefits. Results of the sensitivity analysis show that a 20% increase in cost and benefit will not affect the project feasibility.
(5) Recommendation
Considering the result of the economic evaluation and technical studies conducted in the Study, Alternative-2 is the most recommendable alternative by the Study Team.
5. Project Schedule
The Project Road, the M-2 Motorway in the Salt Range, involves a number of problems, such as frequent serious traffic accidents and natural disasters, which are of public concern. There is also the fundamental problem of the physical distribution route, i.e., difficulty encountered by heavy cargo vehicles on the north bound lanes due to the very steep gradient of 7%.
Therefore, the project schedule should be planned taking into consideration the earliest possible resolution of these problems. On the other hand, total realignment of the north bound lanes as proposed in the Study requires the time-intensive construction of a tunnel and long-span bridges. Hence, improvement of alignment on the south bound lanes is planned for the first stage, and construction of the tunnel and long-span bridges is planned in parallel. Table 7 shows the Project Schedule planned in the Study.
Table-7 Project Schedule
Work Item 2009 2010 2011 2012 2013 2014
EIA and its Approval
Partial Realignment of Existing M-2
1. Detail design
2. Tender process
3. Construction of bridges
4. Earth works, etc,
Construction of New Realignment Route
1. Detailed design
2. Tender process
3. Construction of tunnel
4. Construction of cable stayed bridge
5. Construction of continuous steel girder bridges
6. Construction of PC girder bridges
7. Earth works, etc.
8. Disaster prevention works
6. Organization Implementing the Project
The improvement plan for the M-2 Motorway, which is the Project Road, is under the responsibility of the Planning Wing of NHA, while construction and operation/maintenance of the Project Road, is under the responsibility of the Construction Section and GM M-2 Office, respectively. Even though NHA promotes PPP projects, there are no plans for privatization of NHA.
NHA has been working to reduce its dependence on the Government budget and secure independent financial resources, a policy that will strengthen its capacity to implement projects. In addition, it would be helpful to set up a standard for determining the priority of project implementation when distribution of project maintenance budget is to be determined. In this case, it is necessary to allocate funds for high-priority projects by judging the status of the project within the framework of the transport network as well as economic development, importance of
the project and state of urgency from a comprehensive and objective perspective. Since the Project requires immediate action, it is desired that priority be given to budget allocation and financial support from the RMA.
The other donor has not intention for financing this project.
7. Technological Advantages of Japanese Companies
Implementation of the Project requires There are various advanced technologies from of Japanese companies required for the implementation of the Project. Those technologies are; in terms of steel girder cable- stayed bridges, bridges with a limited number of steel girders, aseismic technologies, weatheringproof proofing steel materials, pneumatic caisson foundations and tunnel construction technologies.
Within the total contract cost of the Project, which can be covered by yen credit line, the ratio of procured materials and equipment originating from Japan for Alternative-2 is estimated at 31%. This ratio satisfies the minimum procurement rate required for eligibility for Special Terms for Economic Partnership (hereinafter referred as “STEP”), which include the benefits of a long repayment period and very low interest rate.
The following Project materials and equipment can be procured from Japan: － Cables for cable-stayed bridge
－ Weatherproofing steel materials － Steel girder bridge
－ Rubber shoes
－ Equipment for tunnel excavation － Materials for construction of tunnel.
The Project consists of motorway realignment including construction of a tunnel and long-span bridges, and Japan has extensive experience with this type of work, such as improving the Tomei Expressway and Chuo Expressway in mountainous areas. Therefore, a policy that promotes the Project with STEP financing, in support of Japanese companies contracting for the Project, should be considered.
