Greater Mekong Subregion

Summary of the Phnom Penh to Ho Chi Minh City GMS Road Project

Scope

1. Cambodia

1. Minor improvements to about 60 km of the Project Road from Phnom Penh to the Mekong River ferry;
2. Reconstruction of 105 km of the Project Road from the Mekong River Ferry to Bavet at the border with Viet Nam

2. Viet Nam

1. Reconstruction of about 80 km of Project road. This length includes 58 km of Highway 22 between An Suong and the border with Cambodia at Moc Bai;
2. 22 km of Highway 1 between Thu Duc and An Suong (part of outer ring road north of HCMC)

3. For Both

1. Consulting services for construction supervision and training of domestic Government and consultant staff

Summary of the Bangkok-Phnom Penh-HCMC-Vung Tau Road

Chiang Rai to Kunming via Lao PDR Road Improvement

Chronology of Events

• Identified by the Subregional Transport Sector Study (STSS) as being among the highest priority GMS road links requiring improvement (1994).
• The recommendations of the Final Report of the STSS endorsed and adopted at successive GMS Ministerial Meetings in 1994 and 1995 as to priorities.
• TA No. 5728-REG: Chiang Rai-Kunming Road Improvement via Lao PDR Project was approved for $0.6 million on 27 February 1997.
• Consultants commenced work in July 1997, completed in 1998.
• Bank loan to PRC to improve the Yuanjiang to Mohei approved for $250 million in June 1999. Total Project Cost: $770 million
• Concession agreement for the Lao PDR portion of R3 is currently under review

Summary of the TA 5728-REG: Chiang Rai to Kunming via Lao PDR Road Improvement Project

For Yunnan Province, Route # 213

• The technical and economic studies undertaken by Yunnan Province Communications Department were well done.
• Further work required for the environmental and social aspects of the Project to meet Bank requirements was undertaken through further Bank funded technical assistance

For Lao PDR, Route # 3

The consultant identified three improvement levels:

• Class 4/5: minimum level improvement needed to achieve all-weather capability. EIRR = 16%
• Class 3: sealed road with capacity, alignment and gradient improvements. EIRR = 18 %
• Class 2: high standard, greatly improved alignment (23 km shorter than existing road). EIRR = 22%

The financial analysis showed that the road concession on its own would not be financially attractive. With land development, the financial internal rate of return is marginal.

The social impact with road improvement is likely to be very positive, particularly in terms of health, education and income generating opportunities.

The road and its improvement in currently under a concession agreement. This agreement was found to be faulty. It is currently under review and associated problems are expected to be worked out soon.

For Thailand

Various upgrading of the connecting links in Thailand are being planned. For example design of a bypass (32 km) of Chiang Sean has been made and implementation is scheduled soon.

There is also a plan to replace substandard box culverts with small bridges on those links needing them.

Summary of the Chiang Rai-Kunming Road Improvement via Lao PDR Project

East-West Transport Corridor Project

Chronology of Events

• Identified by the Subregional Transport Sector Study (STSS) as being among the highest priority GMS road links requiring improvement (1994)
• The recommendation of the STSS were endorsed and adopted at successive Ministerial Meetings in 1994 and 1995 as to priorities
• TA 5586-REG: Study of the Lao PDR - Thailand - Viet Nam East - West Transport Corridor approved in June 1994
• Three options were studied:
  1. a northern corridor using Road 8 in Lao PDR leading to the port of Cua Lo near Vinh in Viet Nam,
  2. a central corridor using Road 9 leading to Da Nang, and
  3. two alternative southern corridors from Pakse to the ports of either Da Nang or Quy Nhon.
• The Central Corridor (East - West Corridor) was selected with the agreement of the three governments based on economic, environmental and strategic considerations
• A second phase TA 5710-REG: Study of the Lao - Thailand - Viet Nam, East - West Transport Corridor involved detailed feasibility investigations including economic, engineering including detailed design of selected components, preparation of tender documents and assistance to Lao PDR for prequalification of contractors
• Loan components include:
  1. Lao PDR: rehabilitation of Road 9 between Muang Phin and Dene Savanh at the Viet Nam border (about 78 km),
  2. Viet Nam: Upgrading and improvement of Road 9 between Lao Bao at the border with Lao PDR and Dong Ha at Highway 1 (about 83 km)
• A parallel activity that has been actively pursued is the development of a cross-border agreement between the three governments
• A draft cross-border agreement was discussed at a trilateral meeting in Bangkok in December 1998 comprising 44 articles. 40 were agreed at that meeting
• All parties have been working hard to resolve the outstanding issues for the other 4 Articles. Agreement has essentially been reached and the cross-border agreement is expected to be finalized by Friday afternoon.
• The Agreement is scheduled to be signed on 26 November 1999 in Vientiane by the Transport Ministers from each of the three countries.

Kunming-Hanoi-Haiphong Transport Corridor

Chronology of Events

• This transport corridor was agreed as the next GMS priority project at the 4th STF and was endorsed at the 8th Ministerial Conference held in Manila in October 1998
• A TA is in the Bank's Regional Technical Assistance Program in 2000
• A loan for Viet Nam is in the pipeline for 2001

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