World Bank Documentdocuments.worldbank.org/curated/en/... · Mekong's hydrological regime, large...

E-o 1. -VIETNAM INLAND WATERWAY INTERNATIONAL BANK FORDEPARTMENT / PMU-SW RECONSTRUCTION

AND DEVELOPMENT

INLAND WATERWAYS ANDPORT MODERNIZATION PROJECT

VOLUME 11THE INLAND WATERWAY IMPROVEMENT PROJECT(MAIN REPORT)

FINAL REPORT

JUNE 1996

FIEDECOlNetherlands Engineering Consultants

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LIST OF REPORTS

VOLUMEI EXECUTIVE SUMMARY

VOLUME 11 INLAND WATERWAYS IMPROVEMENT PROJECT (Main Report)

Annex 11 - 1: Design ReportAnnex 11 - 2 Navigation AidsAnnex 11 - 3: Soil Report

VOLUME III : RESETTLEMENT ACTION PLAN

VOLUME IV : ENVIRONMENTAL IMPACT ASSESSMENT &ENVIRONMENTAL MANAGEMENT PLAN

VOLUME V TOPOGRAPHIC MAPS (scale 1:5000)

Book 1: Ho Chi Minh City - Cho Gao (PI/O to PI/l 3)Cho Gao - Sa Dec (Pll/O to PIV/21)

Book 2: Sa Dec - Lap Vo (Plll/O to P111/14)Rach Gia - Ha Tien (PIV/0 to PIV/1 9)Rach Soi - Ha Giang (PIV/20 to PIV/32)

Book 3: Cho Lach - Mang Thit (PV/0 to PV/20)Can Tho - Ca Mau (PVI/O to PV1138)

CONTENTSPage

1. INTRODUCTION 1A. Antecedents 1B. Study Objectives 3C. Reporting Schedule 3

2. WATERWAY TRANSPORT IN THE MEKONG DELTA 5A. Traffic 5B. Waterways 13C. Fleet 14D. Ports 15E. Capacity IWT system 15

3. STRATEGY FOR WATERWAY TRANSPORT IMPROVEMENTS 16A. Capacity Improvements 16B. Waterway Improvement Alternatives 17

4. RESETTLEMENT ASPECTS 20A. Baseline Assessment 20B. Compensation 25

5. ENVIRONMENTAL ASPECTS 31A. Baseline Assessment 31B. Potential Impacts 48C. Alternatives/Mitigating Measures 52

6. THE WATERWAY IMPROVEMENT PROJECT 55A. The Base Case for Waterway Improvement 55B. Base Case Evaluation 65C. Most Promising Option 70D. Resettlement Requirements 86E. Environmental Measures 92F. Economic Evaluation and Sensitivity Analysis 97

7. IMPLEMENTATION SCHEDULE 102A. Resettlement Action Plan (RAP) 102B. Environmental Monitoring 102C. Dredging 103D. Bridge Construction 104E. Aids to Navigation 104F. River Training Works 104G. Technical Assistance/Training 105

8. INSTITUTIONAL, T.A. AND EQUIPMENT REQUIREMENTS 107A. Institutional Aspects 107B. Strengthening IWD/Technical Assistance 108C. Auxilary Equipment Requirements 110

LIST OF TABLES

Table 2.01 GDP growth rate in Viet Nam 1990-1 995 8Table 2.02 Cargo protection by waterway for year 2000-low scenario(1 000t) 9Table 2.03 Cargo projection by waterway for 2015 - low scenario (1000t) 9Table 2.04 Cargo projection by inland waterway for 2000 - high sc.(1000t) 10Table 2.05 Cargo projection by inland waterway for 2015 - high sc.(1 000t) 10Table 2.06 Fleet composition for long-haul transport in Mekong Delta (1 991) 14Table 4.01 Size of houses (floor surface in square metres) 21Table 4.02 Main source of income 21Table 4.03 Distance (in minutes) to facilities, services and temple 21Table 4.04 Year of settlement 22Table 4.05 Average annual incomes for farming, business and others 22Table 4.06 Ethnic minorities among PAF per province 22Table 4.07 PAF per province 23Table 4.08 Compensation matrix 27Table 5.01 Acid sulphate soils in the Mekong Delta (USDA) 35Table 5.02 Main soil units in the Mekong Delta (NIAPP) 35Table 5.03 Occurrence of AASS and PASS in canal stretches (km) (NIAPP) 35Table 5.04 Water quality XA No canal 37Table 5.05 Water quality in Mang Thit River, Vinh Long Province 38Table 5.06 Water quality in Cai Rang river & Xa No canal, Can Tho province 38Table 5.07 Water quality in Cai Lon River, Kien Giang province 38Table 5.08 Water quality in Trem river, Minh Hai province 39Table 5.09 Water quality in Cai San canal 39Table 5.10 Heavy metals in the waterways 41Table 5.11 Pesticides in the waterways 41Table 5.12 Generalized short-term effects of acidity upon fish 49Table 5.13 Estimated yearly amount of acidity (rice fields) 50Table 5.14 Estimated yearly amount of acidity (raised beds) 50Table 6.01 Comparison of channel dimensions in various countries 56Table 6.02 Bank slopes of main waterway stretches 58Table 6.03 Break-down of dredging volumes HCMC - Kien Luong 59Table 6.04 Break down of dredging volumes HCMC - Ca Mau 59Table 6.05 Summary of dredging volumes 59Table 6.06 Pyritic dredging volume HCMC to Kien Luong 61Table 6.07 Pyritic dredging volume HCMC to Ca Mau 61Table 6.08 Maximum salinity intrusion under extreme (90%) dry conditions 63Table 6.09 Bridges not meeting the Class IlIl clearance requirements 63Table 6.10 Resettlement requirements, Base Case, HCMC - Kien Luong 65Table 6.11 Resettlement requirements, Base Case, HCMC - Ca Mau 65Table 6.12 Difference between Base case and alternative 69Table 6.13 Critical bends of the main inland waterways 71Table 6.14 Dredging volumes, HCMC to Kien Luong 74Table 6.15 Dredging volumes, HCMC to Ca Mau 74Table 6.16 Dredging volumes in terms of pyritic and non-pyritic material 74Table 6.17 Required onland storage areas 77Table 6.18 Bridges which do not meet nautical requirements 78Table 6.19 Bridges to be built/re-conditioned 80Table 6.20 Number of navigation aids required 85Table 6.21 Cost breakdown of project 97Table 6.22 Summary of Sensitivity Analysis 101Table 8.01 Breakdown of costs for Strengthening IWD 109Table 8.02 Breakdown of costs for Auxiliary Equipment 110

LIST OF FIGURES

Figure 1.01 The Main Inland Waterway Stretches 4Figure 2.01 Origins and destinations for cargo projections 7Figure 2.02 Total cargo from Mekong Delta provinces, 2000 11Figure 2.03 Total cargo to Mekong Delta provinces, 2000 1 1Figure 2.04 Total cargo from Mekong Delta provinces, 201 5 1 2Figure 2.05 Total cargo to Mekong Delta provinces, 201 5 1 2Figure 2.06 Paddy production in the Mekong Delta, 1976-2015 13Figure 5.01 Locations of bottom sampling 40Figure 6.01 Total dredging volumes (incl. pyritic soil) 60Figure 6.02 Pyritic dredging volumes (Class III canal) 62Figure 6.03 Resettlement requirements for Class IlIl improvements 66Figure 6.04 Typical Design of clay slope protection 81Figure 6.05 Typical Design of rip-rap slope protection 81Figure 6.06 Rock Deflection Structures 83Figure 7.01 Implementation Schedule 106

June 1996/2KC1875.21/R002/AMS/SPE/lb

1. INTRODUCTION

A. Antecedents

1.01 The Mekong Delta in Viet Nam is the most downstream part of theMekong river basin. It is potentially an area of great productive capacity and itsdevelopment is of crucial importance to the nations's economic prosperity andfood balance. At the same time the Delta is a difficult area, with both considerablephysical resource and environmental constraints: great annual variety in theMekong's hydrological regime, large tracts of land with acid sulphate soils andvulnerable wetlands.

1.02 The Mekong Delta within the territories of Viet Nam covers an areaof 39,000 km2. About 1 5 million people live in the Delta. Most people are engageddirectly or indirectly in agriculture. The Delta accounts for a high share of nationalagricultural production, generating over 40% of all agricultural outputs of thecountry. Although the soils consist for 23,500 km2 of acid sulphate and salinesoils, very large seasonal variations in rainfall and river flows have a decisiveimpact upon fauna, flora, human habitat and living conditions. Yearly an area ofup to 10,000 km2 is flooded by Mekong water. In depression areas inundationoccurs because of poor drainage. In the dry season when river flow is lowest,saline water intrudes into the waterways affecting some 17,000 km2.

1.03 Future exploitation of the resources of the Delta calls for carefulplanning of activities. The Government of Viet Nam, with the assistance fromUNDP, the World Bank and the Mekong Secretariat, has prepared a comprehens-ive, integrated Master Plan for development and management of the resources ofthe Mekong Delta. The Master Plan project was completed in October 1993; itwas carried out by Vietnamese organizations with assistance from NEDECOconsultants. The project includes:

a) the formulation of a long-term optimal, sustainable and environmentally sounddevelopment plan and of an investment strategy;

bI the preparation of five feasibility studies of projects suitable for internationalfinancing;

c) training of counterpart staff in planning techniques.

1.04 The MDMP envisages principally the development of the primarysectors: agriculture, forestry and fishery. These developments are to be supportedby the advancement of the transportation sector, in order to create the conditionsin which the primary sectors can develop without being hampered bytransportation constraints.

1.05 On the other hand, Mekong Delta development anticipates theprogress of industrialization, service sector and urbanization in order to avoid acontinuation of the underdeveloped position of the Delta in comparison with otherregions in Viet Nam. The development of an adequate transportationinfrastructure, providing the necessary communication between hierarchicallyranked development centres is also therefore essential. Especially thetransformation of Can Tho into the Delta's most important growth centre, needsto be supported by the appropriate transportation infrastructure.

2

1.06 In the Mekong Delta, a dense waterway system is available vvith atotal length of some 5,000 km, of which 4,800 km are presently navigable andabout 1,600 km form the main waterways. Compared to the road network, thedensity of waterways is almost three times as high as that of the roads. Therailway mode is absent in the Delta. Freight transport by waterway accounts forsome 70% of the about 10 million tons that is transported yearly in the delta.

1.07 Present and future cargoes in the Mekong Delta are mainly bulkycommodities: rice, fertilizer, construction materials, that are perfectly suited to betransported by waterways. Especially in the absence of railway, no other transportmode can presently compete against waterway transport for long distances.

1.08 in the framework of the Mekong Delta Master Plan, the principalwaterways in the transport corridors: Can Tho - Ho Chi Minh City, Can Tho - KienLuong and Can Tho - Ca Mau were selected for rehabilitation and improvement.Due to the high priority a feasibility study on the Rehabilitation and improvementof the main waterways in the Mekong Delta was undertaken by the TransportEconomic Science Centre in the South of Viet Nam (TESI-South) which is part ofthe Ministry of Transportation, together with NEDECO. The feasibility study lookedinto various alternative routes and upgrading of waterways from Ho Chi Minh Cityto Ca Mau and to Kien Luong.

1.09 The results of the Feasibility Study, carried out by TESI-South in1 992-1 993 present the following scheme for the rehabilitation and improvementof the Main Waterways in the Mekong Delta:

- Improvement of the main waterways between Ho Chi Minh City and Can Thoand between Ho Chi Minh City and Kien Luong to a level allowing uninter-rupted day and night navigation in both directions.

- Phased improvement of the main waterway between Can Tho and Ca Mau,following the Xa No Canal; (i) first phase improvement to a level that allowsfor day and night navigation in both directions, provided that traffic regu-lations are strictly followed in cases of meeting and overtaking of designvessels; lii) second phase improvement to the level as envisaged for abovementioned stretches. Second phase improvement has been scheduled for theyear 2004.

1.10 In light of the foregoing, the Socialist Republic of Viet Nam made anofficial request to the Japanese Government to provide funding for studies for thefurther development of the Mekong Delta. Japan agreed to this request and cameto an agreement with the World Bank to make available a grant for technicalassistance related to the execution of studies termed "Inland Waterways and PortModernization Project". In general terms, the project aims at increasing theefficiency of inland waterways transport in south Viet Nam, strengthening theinstitutional capacity of the Inland Waterways Department for traffic enforcementand the rehabilitation of the existing Port of Can Tho.

3

1.11 Terms of Reference were prepared by the World Bank for theappointment of Consultants to provide technical assistance and advice to theProject Management Unit of Southern Waterways (PMU-SW) and TESI-South.NEDECO was subsequently selected to provide the required consultancy servicesin August 1 995.

1 .1 2 Following the World Bank visit to Ho Chi Minh City in late September1 995, the structure of the project was modified such that these studies would becarried out by the PMU-SW working together with NEDECO. TESI-South would becontracted by the PMU-SW to carry out specific tasks on the project.

B. Study Objectives

1 .1 3 The principal objectives of the Inland Waterways and PortModernization Project in the Mekong Delta in Viet Nam are to:

a) increase the capacity, efficiency, safety and operating conditions of inlandwaterways transport in south Viet Nam;

b) strengthen the institutional capacity of the Inland Waterways Department andits southern agencies in operations, maintenance and traffic enforcement;

c) rehabilitate the existing Port of Can Tho so that it can offer an efficient andreliable service and meet projected freight demand until the year 2001.

1.14 In order to achieve these objectives the following will be prepared:

- Environmental Impact Assessment and Environmental Management Plan tomitigate negative project impacts;

- Resettlement Action Plan to minimise or eliminate negative impacts on projectaffected famiiies (PAF);

- Preliminary designs of waterway improvement and auxiliary works;- Plan for Rehabilitation and Modernization of Can Tho Port;- Project for Improvements and Extension of the Navigation Aids on the Inland

Waterway Corridors.

The first three actions have been achieved in accordance with the Terms ofReference for the "Environmental Studies", while separate Terms were preparedfor the latter two components.

1.1 5 The results of the present study, together with the results of theprevious 1 993 Feasibility Study, will form the rationale for the pre-appraisal of theproject(s) that the Bank intends to carry out in 1 996.

C. Reporting Schedule

1.1 6 The draft final report comprises the following volumes:

VOLUME I : Executive SummaryVOLUME il : The Inland Waterway Improvement Project (Main Report)VOLUME III : Resettlement Action PlanVOLUME IV Environmental Impact Assessment and Management PlanVOLUME V : Topographic Maps

4

1.17 This document represents Volume II. The 1993 feasibility study ofTESI is reviewed in chapters 2 and 3 and the resettlement and environmentalaspects are described in chapters 4 and 5 respectively. In chapter 6 the base caseof the improved project is presented and evaluated. Based on the results of theevaluation, the most promising option is presented. In chapters 7 and 8, theimplementation schedule and institutional aspects are described.

S l'2,C e IHE INLANUWIAAlH\WAYSSTR{ETCHES.

HC Clil MINH - KIEN LUC 'JG HOCHI MINI'CAMAU

) ) | No, Names ol Caznal, River C rtance Accumolaled O,stacnc Names of Canal. River N.0 P~~ ~~~~~~~~~~~~~ ~~~~ ~~~~~~~~~~ r Ostirncp, KM Km ____________

0 1~~~~~~~~~~~~~~ ~ ~~~~~~ Ong Lon Crockl 4'148 4.8 81 483 Ong Lon Creekr2 Cay Khc Creck 3.5 S 1 8.3 35 Cay Kho Creek 23 Can Gmvo Ni-e 207 340 34.0 2501 Gas Q.n Ri-e 3

err 3.4,00 b4 N-oe Man Canal 2.5 36 5 36 5 2 S Nuoc Mn Crnal 4rO osen Vo t 65 Vam Co River 10 0 .S 6.5 46.5 10 0 ham co Rivr 5

cOn- ~~~~~~~~~~ ~ ~~~~~ ~~~~~~6 La Cree 1017 56.5 56 5 18.0 La Creek 67 CG(o Ga. Canal 13.8 68.5 65 130 Chro GLan Canal 7B Ky On Canal 6.8 76.3 76.3 6 8 Ky On CanalB

(up toCho Lach Canal) (up to Cho Lach)_______ ~~~~~~~~~~~~~' n.soo 0~~~~~~~~~~~i Mekong rivr 33.0 144.8 128.8 92O Cho Lach Canal 18

________ 01 '~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~ 1 ~~~~~(op to My Th.an canal) 131.6 1120 Mekong River ftII Mekong River 3.0 147.8 161 6 2980 Mang T int River 12

rem 70.300 ror en .roo (op 10 SalTe~~~~~~~~~~~~~~~~~~~~~~~~c crlonience) 174.0 12.4 Man8 lhil River 131a(P;.o wac- \V )r_ 12 t3a Dec River 37.8 175.3 177.80 132 3.8 TraOng IhrenR 14 ,111\w tM 5 t r} OO 413 Lap Vo C anal 19 0 1994.3 186.6 118.7 Bassac River 1'

14 Lap Vo Cr'eek 82 199.8 212.6 16.0 Can Tho Creek 16115 Ba!isac River 185 201.3 25232 389 Xa No Canal 1 7

<a 'oa, on e.) 16 RN cto 001 . Hoo Goln 54.6 285.9 255.3 3 11Cc.HNG56 5CreeaN18Canal 287 6 122 Cai To Cneek 19

cr0 ~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~ ~ ~~~~~~~~~~17 By - Parses Cavo- 7.6 363.7 2736 8.0 Gapy Tram Creek218 Rack C-mo - Ho Tien Cirl 61.3 35 o0 28a4a 11.6 Nga CO Dinh CGre 21

rX~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 Rach G.a - H Tol C/0Oanal 201-

Kiev L .. ng Cerene 317.8 33 5 Them Centr Den Canal 22000 '~~~~~~~ no., rr 18 Parforo 3.0 325.0 3304 128 Trem River~~~~~~~~~~~~9 aco' 3, 38. 30 125 re Rve 2

3353 4.8 Clg Doc2)0, 348.0 4 2 ' [ i i * f1 Tar ISo Th ,, r 5ivr

345 6 5.8 Glank HaoRvr2

)~~~~~. 8 .______ - __ __ ->,Sl.AT .__ _______________________

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UNION OP WATEREIC RN TRANSPORT COMPANIES I1t WATCO II)Su ncre THE TRANSPORTA- ON MASTER PLAN' map 115000 scale of Rah Gba

01'1AIIST REIrlVAI 'SC OF VIFETYICA

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INLAND WATERWAYS STRINr ($S _ \/ lScaLe, 1:500000)

SA DEC

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. ~ ~ ~ ~ ~ ~ ~ ~ ~ / _ _ _ _

2. WATERWAY TRANSPORT IN THE MEKONG DELTA

A. Traffic

2.01 In 1993, cargo projections were made for inland waterway transportbetween the eleven provinces of the Mekong Delta, Ho Chi Minh City, Cambodiaand overseas origins or destinations (other parts of Viet Nam or other countries viaSaigon Port or directly), see Figure 2.01. The methodology used in theseprojections is based on the following steps:

- A population projection has been obtained for each province for the years2000 and 2015;

- The production and consumption of the main commodities of each provinceis estimated for the years 2000 and 201 5 and the balance to be transportedbetween provinces or to leave or enter the Delta is also established. Thecommodities taken into account are: rice, other cereals, other foodstuff,timber, cement, cement clinker, stone, sand, steel, petroleum products, coal,fertilizer, equipment, and 'other' commodities. For the years 2000 and 2015tables have been prepared showing which commodities have to be transportedto and from which province (see Annex 1 : Tables 1-4). This information ispresented graphically in Figures 2.02 to 2.05.

- Based on the above, origin/destination tables have been compiled, showingthe total cargo volumes coming from and going to the eleven Mekong Deltaprovinces, HCMC, Cambodia, and overseas for 2000 and 201 5 (see Annex1 : Tables 5 and 6, at the end of this report).

- In order to determine the cargo flows to be transported by inland waterways,modal split tables have been prepared, showing which fraction of the totalcargo flow will use inland waterway transport. These tables take the type ofcargo into account. In 2000 65% of all commodities transported will useinland waterways; in 201 5 this is expected to drop to 59% (see Annex 1Tables 7 and 8, at the end of this report).

- The projected cargo flows (low scenario) to be transported by inlandwaterways are then calculated based on the above mentioned tables, givingthe expected volumes under the assumed levels of production, consumptionand by using the applied modal split (see Annex 1 : Tables 9 and 10, at theend of this report). In 2000 according to this scenario 9.2 million tons will betransported by inland waterways and 15.6 million tons in 2015.

Finally, a high scenario for cargo flows to be transport by inland waterwayshas been prepared, using the same methodology, but assuming a higher levelof economic activity in the Delta, which would mainly lead to a substantialincrease of the use of construction materials (see Annex 1 : Tables 11 and1 2, at the end of this report). In this high scenario 11 .6 million tons will betransported by inland waterways in 2000, and 18.1 million tons in 2015.

6

2.02 The cargo projections for the inland waterways consider allwaterways of the Mekong Delta. The cargo flows that could make use of theroutes to be rehabilitated for this project correspond to about 60% of the totalvolume.

7

N

CAMBODIA

G U LF O F *tc e .C

THAILAND

Figure 2.01 Origins an5 d i ct

Figure 2.01: Origins and destinations for cargo projections

8

2.03 The assumptions used in 1993 for the cargo projections have beenreviewed. The major commodities involved are rice and other cereals, fertilizer, andconstruction materials. In 2000 they are expected to constitute almost 70% of thecargo to be transported, and again a very large portion of this cargo will use inlandwaterways. In Figure 2.06 the historic paddy production of the Mekong Delta ispresented for the period 1976-1994, along with the forecast used in this cargoforecast. This figure shows that in fact the expected production volume of 1 3million t for 2000 has already been achieved in 1994. 1 995 has also been a goodpaddy year. As far as rice transport is concerned, this shows that theimprovement of the inland waterway transport system is even more urgent thenpreviously expected.

2.04 In the final report of the Mekong Delta Master Plan (October 1993)various economic growth scenarios have been presented, ranging from a ratherconservative scenario depending mostly on primary sector development, to ascenario aiming at full economic diversification through a wide-rangingtransformation of the Delta's economy. The last scenario would require asubstantial infrastructural development, and therefore a high volume ofconstruction material.

2.05 The conservative primary sector driven scenario assumes a decliningGDP growth from 6.5% in 1990 to 5.5% in 2000 and 4.5% in 2015. Thescenario aiming at full diversification assumes an increasing GDP growth from6.5% in 1990 to 8% in 2000 and thereafter. The economic activity in Viet Namover the period 1 990-1 995 measured as GDP growth is presented in Table 2.01.For 1 996 even higher economic growth is aspired to.

Table 2.01 : GDP growth rate in Viet Nam 1990-1995

Year | 1990 1991 1992 1993 1994 1995 1996 Planning

GDP Growth (%) 5.0 5.8 8.4 8.1 8.8 9.5 10.0

2.06 From this table it becomes clear that Viet Nam has shifted to veryhigh growth rates, and that the economic full diversification scenario is likely tomaterialise in the Mekong Delta. It was therefore decided to use the high cargoprojections in the economic analysis of the project.

Table 2.02 Cargo projection by waterway for year 2000 - low scenario (1000 t)

O1D 1 2 3 4 5 6 7 8 9 10 1 12 13 14 ToIlM

I IS0 ItO 6 92 174 30 25 Ito 30 5 5 354_-3 8 4 125 44 156 68 40 565 112 3 5 1,153

4 140 140 7 6 7 264 26 1 4 604s 00 63 43 306 89 723 150 49 18 236 12 140 54 85 101 13 47 256 78 28 4 7 8257 2 28 4 56 810 7 7I 3 20

8 ~ ~ ~~~~~~~~ ~ ~~~~~~7 859 7 7 340 4 4 4 440g 5 5 a 44 3 5 320 12 8 9 46410 231 114 240 4 2 7 159 1 3 7 158 2 31 146 140 182 2,165

11 165 7 13 62 11 77 ______I _____335

12 125 5 52 7 14 113 4 32013 5 52 7 II 116 9 4 20414 9 7 90 5 117 4 4 235

Toal1 194 1,025 426 249 448 1,652 464 201 253 2,947 649 337 167 2 1 7 9,229

Table 2.03 Cargo projection by waterway for 2015 - low scenario (1000 t)

DID - 2 3 4 _ 6 7 _ 10 11 12 13 14 Tola l1 360 20 12 3922 410 150 150 115 250 150 150 1,3353 340 120 240 129 494 92 60 30 1,5054 250 70 14 11 13 485 35 8785 ISO 255 8 95 289 1950 315 1401 2,7946 30 200 140 25 210 166 38 86 252 416 33 48 48 1.6|2

7 ~~ ~~~~~ ~~~~~3 183 7 490 12 13 6 7 72 1a ~ ~ ~~~~~~~9 9 33 9 9 4862 6 6 6 569

9 250 7 12 33 5 9 37 7 12 9 9 72310 319 227 249 219 176 259 420 450 230 258 414 3.221 |11 100 7 20 156 14 138 43512 ISO tO s8 13 320 8 59913 tO153 16 226 18 8 4 3 1 14 21 16 66 18 158 12 12 3011-

Total 44 ,0 481 562 1 5 94 2.208 84 9 3 17 68 5 4.372 1.303 691 369 800 15.6831

Table 2.04: Cargo projection by inland waterway for 2000 - high scenario {1000 t)

OtD 1 2 3 4 5 a 7 10 11 12 _3 14 Totat

207 I 7 225

2 200 48 69 126 69 I 40 70 G33

3 9 I55 51 269 78 46 442 239 40 1.329

4 161 161 B 6 7 317 29 16 705

5 126 75 55 645 102 4 4 645 181 137 43 2,017

6 14 172 64 3 101 119 17 54 386 97 31 23 96 1,1 77

7 3 261 5 106 9 11 a a 411

a 7 9 . 75 7 7 437 5 4 4 555

8 57 6 9 60 2 6 311 14 9 10 484

10 291 116 276 412 171 178 254 1 274 227 112 175 2.486

II 2 36 7 1 15 179 13 158 608

12 144 67 3 16 15 4 424

13 6 67 7 12 177 4 273

14 15 11 10o 12 140 9 930

701.1 223 1,258 530 326 518 2,382 526 257 370 3,305 869 560 208 301 116,33

Table 2.05: Cargo projection by inland waterway for 2015- high scenario (1000 t)

010 1 2 3 4 5 6 7 8 9 10 11 12 13 14 TotlI

1 367 20 1 2 3919

2 418 1 53 153 117 255 153 153 1.402

3 347 122 245 132 799 94 61 31 1.831

4 255 71 14 11 13 424 36 824

5 1204 335 791 337 1040 344 2.051

6 882 204 184 St 245 199 S1 96 339 477 37 49 49 2,063

7 4 7 186 7 S00 12 13 7 7 74 38 ~~ ~~~~~~~~~ ~~~~~9 9 33 9 9 491 6 6 6 5 78

9 25 5 7 12 33 5 9 385 12 9 8 736

10 519 279 338 356 266 346 517 650 454 331 521 4,577

11 102 8 20 159 |l 286 586

12 153 99 13 21 32628 62

13 156 17 14 231 6 4726

14 17 13 67 6 161 8 8 2U0

1 Tol S00 1.887 1.244 651 727 2.463 1.009 417 830 4.987 1,s77 760 441 608 18,116

1 1

Cargo from Mekong Delta provincesYear2000 (1000t)

Cement (850) p-Stone (800)

Timber (300)

Foodstuff (350)Other (1694)

Cereals (800)

Rice (4198)

Figure 2.02: Total cargo from Mekong Delta provinces, 2000

Cargo to Mekong Delta provincesYear2000 (1000t)

Other (159i39) Fertilizer (1544)

Petroleum prod. (828) Cement clinker (1245)

Equiprnent (350)

Stone & sand (2542)

Figure 2.03: Total cargo to Mekong Delta provinces, 2000

12

Cargo from Mekong Delta provincesYear 2015 (1000 t)

Cement (1420) Stone (1400)

Timnber (650))tFoodstuff (6 75)

Cereals (1500)

| l | w ~~~~~Other (6215)

Rice (4854)

Figure 2.04: Total cargo from Mekong Delta provinces, 201 5

Cargo to Mekong Delta provincesYear2015 (lOOOt)

Other (2161) Fertilizer (1 960)

Petroleum prod. (1450)

Cement clinker (31 1 e)Equipment (e50)

Timber (1200)

Stone & sand (5785)

Figure 2.05: Total cargo to Mekong Delta provinces, 2015

1 3

Paddy production in the Mekong Delta1976 - 2015

123 ..

1~~~~~-- - - - - -- - - - - - --- - - - - .. .... ....... ... .. .. . . .... . . -- ---. ---------

. 104-|aiF-|--1 2 . ............. .... .+*...... .. ..............

. ''''''' ''--- --- -- - 4 -. - - -- - --- '-- ---............................. ... .. . ..................... ............................ ..........................

- 8 - ----- "-- ---- -'-- X -- '--- ....... ........ --' - --- '--- ------ --- '----- .... ....... -' --- ---- --

6 - ~ ~ ~ ~ ~ ~ .... .. ....... ........... .... . . .... .........................

2. ......... . ...................... ........................... ........................................................0

1975 1960 1965 1990 1995 2000 2005 2010 2015 2020

Historic production + Forecasts

Figure 2.06 Paddy production in the Mekong Delta, 1976-201 5

B. Waterways

2.07 The intand waterway connection between Ho Chi Minh City and CanTho has a total length of 1 95 km, and the least available depth under low tideconditions is less than 2.0 m. Moreover, restrictions to navigation on this corridorare caused by uncontrolled anchoring, fishing traps and encroaching houses.Navigation aids allow for day navigation only.

2.08 The principal waterway connection between Can Tho and Ca Mau,that is navigable for barge convoys, goes via Bac Lieu and has a total length of1 92 km. Least available depth at low tide is less than 1.0 m. Four bridges on thecorridor provide insufficient air clearance for free navigation.

2.09 The principal waterway between Can Tho and Kien Luong has a totallength of 1 73 km. Least available depth at low tide is about 2 m. Two bridges onthis route, various sharp bends and encroaching houses hinder navigation.

14

C. Fleet

2.10 At the time the feasibility study was prepared, the composition of thefleet that takes part in the long-haul transport in the Mekong Delta was assessed,using 1991 data. This assessment is presented in Table 2.06.

Table 2.06 : Fleet composition for long-haul transport in Mekong Delta (1991)

F Type DWT Share in fleet 1%)

Wooden Country Boat 50 - 1 50 46

Self-propelled Steel Vessel 200 - 600 7

Barge Fleet dominant barge size 47250 - 300

The carrying capacity of the fleet that is involved in the long-haul transport on themain waterways has been assessed at some 220,000 DWT (1991).

2.11 Traffic counts carried out between Ca Mau and Can Tho in the firsthalf of 1 995 indicate that the 50 - 1 50 DWT fleet carries some 70% of the longhaul cargo on the Xa-No Canal. On the waterways between Ca Mau and Can Thothe barge fleet is under-represented, either as a consequence of the poornavigability of the waterways, or due to a relatively small volume of cargo thatnormally is transported by the barge fleet.

2.12 The conventional barge train that is plying the main Delta waterwayshas the following characteristics:

- draught tug boat (200 HP) 2.20 m- draught 250 DWT barge 1.60 m- barge (train) width 8.50 m- barge (train) length (2 - 3) x 38.00 m

The draught of the tug boat corresponds fairly well with the draught of the over1 00 DWT country boats, that also participate in the long haul transportation. Thedraught of the standard steel barge is considered very shallow compared to thedraughts of the tugs and country boats. A barge fleet with a draught similar to thetug would easily allow carrying capacities of over 500 tons. Waterway operatorsand managers participating in the workshops held during the studies haveexpressed their keen interest in having the existing barge fleet replaced on the longrun by a standard 500 DWT barge fleet.

2.1 3 The present fleet renovation capacity is insufficient to keep pace withthe yearly fleet reduction due to its old age. It is anticipated that in the comingyears the fleet capacity will reduce at the rate of some 5% per year.

1 5

D. Ports

2.14 Along the Bassac and the Mekong rivers, port facilities are availablefor inland as well as sea-going vessels. The accessibility of these ports, however,is restricted to vessels smaller than 5,000 DWT. Most cargo is transported directlyto and from Ho Chi Minh City, without using the existing delta port facilities. cargohandling in the delta is generally done by manual labour at ramps or small landingstages along the banks of the waterways.

E. Capacity IWT system

2.15 The cargo volume making use of the waterways in the transportcorridors between Can Tho and, Ho Chi Minh City, Kien Luong and Ca Mau, hasbeen assessed at 7.3 million tons per year in 2000. The remaining cargo volumeuses the Mekong and Bassac rivers.

2.16 Simulation of fleet operations under the actual port and waterwayconditions learn that the fleet required for the transportation of the year 2000cargo flow will exceed the, by then, available fleet by some 80,000 DWT. Theactual waterway transport system's capacity is about fully used under the presentcargo flows. In the very near future transport capacity will form a- corstraint toDelta development if no measures are taken that lead to expansion of thecapacity.

1 6

3. STRATEGY FOR WATERWAY TRANSPORT IMPROVEMENTS

A. Capacity Improvements

3.01 The capacity of the waterway transport system will need extension.The option of no capacity increase is considered inconsistent with the MekongDelta development strategy. In order to achieve timely the required capacityincrease, measures are to be initiated right away. Postponement may lead totransport capacity constraints that will have negative economic impacts that gofar beyond the transpurtation sector only.

3.02 Capacity improvement of the waterway transportation system couldbe achieved by improving one or more of the basic components of the system, viz:fleet, cargo handling and waterways. Improvement of the latter two componentshas impact not only on the system's capacity, but also on the transportationcosts.

a) Fleet

3.03 The expansion of waterway transport capacity by fleet extensiononly, would require fleet construction of some 80,000 DWT before the year 2000,in addition to the current fleet renovation activities. This effort necessitates aninvestment of some US$ 30 million. Moreover, fleet construction capacity wouldhave to grow considerably in the coming years. No substantial reduction oftransportation costs would be achieved.

b) Cargo handling

3.04 The impact of improvement of the cargo handling and port efficiencyhas been simulated, assuming a 30% reduction of the current waiting times anda 30 - 50% increase of the cargo handling capacity in the various ports in themain transport corridors. Such improvement would require operational measuresas well as investrTients in berthing, handling and storage facilities. These measuresand investments have not been quantified. The results of the simulation show thatabove improvements would increase the capacity of the transport system bysome 10%, while transportation costs are reduced by some 7%.

c) Waterways

3.05 The impacts of waterway improvements have been evaluated forseveral levels of reconditioning, varying from rehabilitation to full scaleimprovement allowing night and day navigation under all water level conditions.Such improvements lead to capacity increases ranging from 25% (rehabilitationcase) to more than 40%. Transport cost reductions are achieved from 8%freha6iitbiifcas6) to over 20%.

3.06 Waterway improvement, being the most effective measure toguarantee sufficient transport capacity on the short as well as the medium term,has been selected as the first step in the improvement of the waterway transportsystem.

17

B. Waterway Improvement Alternatives

3.07 Various waterway alternatives have been studied with a view toimproving the existing base case. The alternatives considered can be categorizedas follows:

- routes;- level of improvement.

a) Main waterway sections

3.08 In the 1993 Feasibility Study, alternative waterway routes wereexamined for the transport corridors under study. For the corridors from Can Thoto Ho Chi Minh City and to Kien Luong respectively, no justification was found todeviate from the existing alignments. Only for the corridor between Can Tho andCa Mau, it appeared attractive not to maintain the existing route and to open anew trunk waterway through the Xa No canal. In order to prevent the isolation ofthe area that is presently served by the existing main waterway between Can Thoand Ca Mau via Bac Lieu, it is envisaged that this waterway will be maintained insuitable condition.

3.09 The new waterway through Xa No supports the central position ofCan Tho in the Delta and improves the accessibility of the high potential area westof Can Tho, that has been identified as priority area by the MDMP.

3.10 The existing waterway between Ho Chi Minh City and Kien Luong,through Sa Dec, and that by-passes Can Tho, has also been included in thepresent study, because of its direct importance for the clinker/cement transportbetween these two places.

3.11 The main waterway routes to be studied within the scope of thisproject are the same as those presented in the 1993 feasibility study. Nodevelopments haVe been identified that would justify a reconsideration of theseroutes.

3.12 During the Phase I Workshop on 14th December 1995 it wasproposed to include the following stretches in the main waterway routes:

- Ca Mau - Nam Can;- Connection to Bay Nui / Tri Ton.

3.1 3 Both stretches are recommended to be considered separately from thepresent project on the basis of a feasibility study for these specific stretches.These feasibility studies (including cargo projections) are not considered to be partof the present project and therefore the main waterway routes (see Figure 2.0) areidentical to those presented in the Phase I report, namely:

- Ho Chi Minh City - Kien Luong, starting at the Rach Ong Bridge in HCMC andterminating at the Ba Hon Bridge No.2 (on Ba Hon Canal);

- Ho Chi Minh City - Ca Mau, terminating at a point in Ca Mau before enteringthe built-up area of the town.

1 8

3.14 The rationale for the limits are essentially related to the reduction ofresettlement requirements. The cost of resettlement at this location will be veryhigh because the waterway has to be widened at this location and three criticalbends are located between the centre of Ca Mau and its outskirts (Annex 11-1:Design Report Table 2.04). A preliminary cost estimate made on the basis of theApril 1994 census, amounts to some US$ 3.2 million for resettlement in Ca Maualone. No justification has been identified for this economic (and social)expenditure.

It is recommended to shift major cargo handling activities, presently taking placein the built-up area of Ca Mau, to the outskirts of the town. This point is at Km330 + 200 (measured from HCMC) as indicated in Volume V: Topographic Maps,Book 1: Can Tho - Ca Mau (Map No.PVI/1). Consequently, it is recommended tocreate a cargo handling facility (landing stage) at the terminal position of theimproved waterway, having a (existing) road and waterway connection with CaMau town.

If the landing stage is built at Km 330 + 200 on the south bank of the canal it canbe linked with the current road which runs along the southern bank of thewaterway right into the centre of Ca Mau.

3.15 Extension of the main waterway in Ho Chi Minh City to the SaigonPort and the consequent bend correction at Rach Ong Bridge would also involveextensive resettlement problems in urban areas. Since there is an alternative routeavailable for the design vessel coming from the Delta to reach Saigon Port, it isnot considered feasible to carry out the required bend correction in the urban area.

b) Channel dimensions

3.16 The Terms of Reference of the present study call for the preparationof a waterway improvement project aiming at a day and night navigable waterwayallowing two lane traffic. By these criteria the canal depth is essentially set. As tothe canal width alternatives could be considered in relation to traffic density,allowing for a narrower canal on the stretches with lower traffic densities.

c) Bank slopes

3.1 7 Bank slopes in combination with the required depth and width of thewaterways have an important influence on the quantities of material to be dredgedand the associated number of households to be resettled.

3.18 The basic criterium for the assessment of the bank slope is itsstability. Stable bank slopes are determined by geotechnical parameters, the canaldepth and the water levels. Alternative (steeper) bank slopes require structuralmeasures. Vertical slopes can be achieved by sheet piling. This alternative isconsidered where resettlement requirements could justify such solution.

19

d) Channel re-alignment

3.1 9 Re-alignment of existing waterways will generally involve considerabledredging and lead to high costs. Realignments should therefore be avoided if oneis to avoid these high costs, unless there is a justification from an environmental,social andior economic point of view. Two main reasons can be given for choosingmajor re-alignments:

- Bends in the waterways have a radius that is too small to facilitate safenavigation for the envisaged water transport;

- Very high costs are associated with relocating families and/or facilities wherecanal/river widening is required.

Minor shifts of the alignment of certain stretches are considered in order to reducethe soil quantities to be dredged and the number of dwellings affected.

3.20 The requirements with regard to the bend radius are essentially relatedto the efficiency and safety of the navigation of the design vessel. As to the bendradius alternatives could be considered in relation to traffic density, allowing forsharper bends on the stretches with lower traffic densities.

3.21 The construction of canals in the Mekong Delta has attracted manypeople who have settled on the canal banks and this has resulted in thedevelopment of numerous hamlets, villages and small townships. Along severalstretches of waterway that need to be widened, the number of households to beresettled and the number of houses to be demolished could result in costs forcompensation that exceed the costs of constructing a new canal around thedensely populated area.

3.22 Such a situation applies for the existing waterways which passthrough the town of Rach Gia. For this location a new alignment has beenconsidered as an alternative for the improvement for the existing waterway.Preliminary calculations for other densely occupied canal stretches showed thatby-passing leads to prohibitively high costs.

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4. RESETTLEMENT ASPECTS

A. Baseline Assessment

a) Backqround

4.01 The Inland Waterways and Port Rehabilitation Project was conceivedfollowing the completion of the Mekong Delta Master Plan Study. The project aimsto deeper and, where necessary, wider two main waterways in the Delta in orderto facilitate day and night two-way navigation all year round. The two waterwaysconnect Ho Chi Minh City (hereafter referred to a HCMC) with Kien Luong andwith Ca Mau and have a length of 328 km and 345 km respectively.

4.02 Canal widening is planned at specific sections of the Lap Vo - Sa Decriver, the Rach Soi - Hau Giang Canal, the Rach Gia - Ha Tien Canal, the Xa NoCanal, various sections between Xa No Canal and Trem Canh Den Canal and onthe Trem Canh Den canal itself. Canal widening varies between 1 and 12 metres.

b) Census and Socio-Economic Survey

4.03 In November/December 1 995 a door to door census was carried outfor a project design that envisaged a shipping lane of 30 m and canal wideningvarying from 1 to 20 m. The census registered names, location and occupationsof all families living within 20 m of the waterway bank. In addition, the distancebetween waterway bank and house and between waterway bank and homesteadwas measured. Total surface area of house and homestead was recorded as wellas the losses of surface expected from waterway widening. Agricultural landholdings, animals, trees and wells were also recorded. The number of householdsinterviewed amounted to 8400.

4.04 A Socio-Economic survey was also undertaken which covered 30%of the families presumably affected by the project and focused on familycomposition, occup.ations, income, access to utilities such as water and electricity,distances to schools and government offices (VPP), and number of ethnicminorities. The combined data of census and Socio-Economic Survey provided theConsultant with a detailed insight in the characteristics of the families affected bythe project and the impact of the project on their lives.

21

c) Profile of affected families

4.05 Dwellings vary from villa's (few) to thatched bamboo huts. Some 380houses are jutting out from the embankment over the water. More than 1200houses stand on the edge of the water.

Table 4.01 Size of houses (floor surface in square metres)

Floor surface Percentage[m

21 1%]

20 < 12.020- 40 23.040- 60 31.060- 80 17.080-100 8.0

> 100 9.0

4.06 Families affected by the project include farmers, traders, seasonallabourers and irregularly employed independents living on the embankment or overthe water. Fishing is commonly practised for private consumption. Professionalfishermen are rare.

Table 4.02: Main source of income

Period Percentage[%1

Farming 53.5Trading 30.0Seasonal Labour 10.0Mechanical services/small industry 2.0Dependents/retired 1.0Officials 1.0Miscellaneous 2.5

Average family size is 5.7 of which 2.7 are of working age.

4.07 Drinking water supply and sanitation are poor. The majority of theaffected families live in rural areas but clusters of PAF's (Project Affected Families)exist where waterways pass through provincial towns.

Table 4.03: Distance (in minutes) to facilities, services and temple

Province School Health VPC Place ofStation worship

Can Tho 14 35 41 25Dong Thap 21 42 43 31Kien Giang 21 36 51 32Minh Hai 19 34 41 23

22

4.08 The Mekong Delta has always seen a pattern of (voluntary) migration.This is strikingly illustrated by the survey; 40 per cent of the households settledafter 1 975 and 1 8 per cent has moved into the delta.

Table 4.04 : Year of settlement

Period Percentage1%]

Before 1945 191945- 1974 411975 - 1986 22After 1996 18

4.09 Incomes have increased in recent years as farmers practice multiplecropping and private sector activities emerge.

Table 4.05 Average annual incomes for farming, business and others

Annual Income Farming Business Others[min US$S f%1 1%] 1%)

1 < 18.5 3.4 6.61 - 4 36.4 30.4 41.44 8 10.7 20.4 30.6

> 8 34.4 54.2 21.4

4.10 In Kien Giang and Can Tho a few Khmer, Chinese and Cham areamong the PAF. These families are fully integrated with the Kinh and theirnumbers do not justify a specific minorities resettlement plan as prescribed inWB's OD. 4.20 (Indigenous Peoples).

Table 4.06: Ethnic minorities among PAF per province

Enthnic An Giang Can Tho Dong Thap Kien Giang Minh HaiMinority [%] [%1 t%l 1%] (%l

Kinh 100.0 95.9 100.0 97.0 99.5Khmer 0.1 1.0Chinese 4.0 1.9 0.5Cham 0.1

23

d) Number of affected families

4.11 The 1993 feasibility study, estimated the number of PAF at 5400.This feasibility study was based on a two - side dredging scenario with maximumwidening to 5 m on both sides. On the basis of the first 1995 design whichenvisaged a shipping lane of 30 m, it was expected that 6000 families would beaffected and over 3000 would have to be relocated. In view of the large numberof PAF's and the resulting cost of resettlement the GOV decided to reduce theshipping lane width from 30 to 26 m for the Lap Vo, Sa Dec, Kien Luong Canaland from 30 to 22 for the Can Tho - Ca Mau Canal.

4.12 The modified project scope results in 4959 PAF. Initially it was decidedthat all families retaining less than 60 m2 of homestead would have to berelocated. They number 2239. However in view of the often limited size of thehouses, families with homesteads smaller than 60 m2 but whose house wouldremain intact should be able to stay on the remaining homestead. This sharplyreduces the number of families to be relocated to 1280. The PAF live in fiveprovinces which are divided into 1 5 districts.

Table 4.07 PAF per province

Province Number of OWPAF relocated

[IAn Giang 207 118Can Tho 1,647 509Dong Thap 465 18Minh Hai 599 232Kien Giang 2.041 403

TOTAL 4,959 1,280

e) Impact of waterway widening

4.1 3 The widening of the waterway will cause loss of part of thehomestead for 2100 families. The total number of houses wholly or partiallyaffected amounts to 2850; 1570 of these house owners can move back andrebuild on the same homestead.

4.14 The families living on the edge of the waterway bank or over thewater will be most severely affected. In general, these families live in clusters inor near the towns, own little or no homestead land and can therefore not moveback. No losses have been registered of agricultural land, graves and wells. Thisis consistent with findings of the census of 1 994.

4.1 5 In general, rural roads are several metres away from the waterwayand will not be affected. Also no interference is expected with electricity lines.(Provision of electricity to new settlement areas is included in resettlement sitepreparation cost.)

24

f) Bottlenecks

4.1 6 Impact of waterway widening is particularly felt where the waterwaytraverses population centres. A few specific situations merit a description:

Long Xuyen district

4.1 7 The hamlet of Thoi Thanh is situated at the Rach Soi-Hau Giang Canalnear the connection with Bassac river. The canal has the required width but thelocation of two bridges coupled with a sharp bench in the canal obstruct easypassage of ships. In the waterway study design an alignment is proposed whichsmoothens the bend in the canal. While the exact parameter of the alignmentremains to be finalized, the RAP includes the maximum number of households1100) that could be affected.

Vi Thanh Town

4.18 The Xa No Canal needs widening by some 9 - 10 metres where ittraverses the town of Vi Thanh. The number of PAF is 1 70 of which 135 will haveto relocate. Possibilities to limit the number of PAF by reinforcing embankmentwith sheet piling have been investigated. However, the cost (US$ 4 million for 2km) was considered too high. Savings in resettlement cost would have amountedto US$ 0.9 million. It is therefore proposed to implement resettlement in Vi Thanhtown as planned and to develop a pilot village in the vicinity.

Hoa Luu Village

4.1 9 Widening of the Xa No Canal in Hoa Luu is estimated to beapproximately 4 m. Some 70 traders live in concrete houses near the edge of theCanal. District authorities have requested that dredging and wideningspecifications be slightly adjusted so as to prevent displacement of this group ofPAF.

g) Land requirements

4.20 The Lap Vo-Sa Dec, Rach Soi-Hau Giang and Rach Gia-Ha TienWaterway requires widening over a maximum of 1 00 km of its total length of 1 28km. Average widening is 4 m. The Xa-No - Ca Mau Canal will need widening overa maximum of 65 km of its total length of 124 km. Average widening on thiswaterway is 7.5 m. Land requirements for relocation of 1280 families can becalculated at 128,000 m2 or 13 hectares.

4.21 No loss of agricultural land has been recorded. However final dredgingand widening specifications may include smoothening of the bends in the Tat CayTram and in the Trem Canh Den Canal. It is tentatively estimated that some 50 hamay be affected. A provision is included in the resettlement budget.

4.22 Finally, a first estimate for land required for dredge material deposalamounts to some 1 000 ha. Dredge material disposal and compensation for farmersare described in the dredging study.

25

B. Compensation Policy

4.23 Every family affected by the project will be fully compensated atreplacement cost for losses incurred. These losses may vary from loss of a fewmetres of homestead land, partial or full loss of the house to (partial) loss ofresidential land and house and (partial) loss of residential land house andworkshop.

4.24 Compensation to PAF marginally affected

- Compensation in cash shall be applied as a general rule for marginally affectedPAF.

- Compensation shall be given for all affected structures or lands of all familiesregistered in the census of December 1 995. No differentiation shall be madeaccording to the legal status of the families registered.

- Compensation shall include all additional works carried out by project affectedpersons e.g. household electrification, compound walls, and all additionalitems such as trees, graves, wells etc.

- Partial compensation shall be given for affected structures if over 50 per centof the structure can be maintained and adjacent reconstruction is viable. Thecompensation will be effected through provision of building materials or incash if so requested.

- Compensation for loss of homestead area will be calculated on the basic ofdecree 90 CP, based on rates as stipulated in Resolution No 87 CP anddetailed and confirmed by the Provincial Peoples Committee for the respectiveprovinces.

4.25 Compensation to PAF in need of relocation

- Families retaining a homestead of less than 60 square metres shall be offeredthe opportunity to relocate to new resettlement area's prepared by theprovinces with adequate physical and social infrastructure. Support for theconstruction of a new house shall be given in building materials. However, ifthe house of such families is unaffected these families will be allowed to stayat their remaining homestead and will be compensated in cash for the acreagelost.

- Families losing less than 50 per cent of their total land holding shall becompensated by being given land (of the same crop productivity) equivalentin acreage in an area nearby or shall be compensated in cash.Tenants leasing land will be given an equivalent plot of land for the remaininglease period or will be compensated in cash.

- Compensation rates for land shall be based on decree 90 CP of 17 August1 994 as it is applied in the particular province.

26

PAF loosing their house and with a remaining homestead which is insufficientto rebuild on the site will be compensated for the loss of their house and thetotal homestead, even if not all acreage is required for project purposes. ThesePAF are entitled to receive a plot of 60 m2 in a settlement area prepared bythe Provinces in a nearby area. For displaced PAFs with existing land of sizesmaller than 60 m2 the plot of 60 sq.m. will be provided at the resettlementsite with no additional payment.

PAP's having business establishments will be given priority in allotment ofland, either elsewhere along the canal or in a nearby market area so that theirbusiness is not adversely affected.

Families wanting to acquire plots and houses in a location other than the newsettlement area can be compensated in cash. Payments shall be made to theseller of the new homestead after the compensation committee has verifiedand approved the new location.

4.26 Compensation for spoil and deposit

- Farmers whose land is taken for dredge material disposal will receive cashcompensation for the value of crop (s) during the period of settling of the spoilsoil.

4.27 Subsistence allowance

All families of which part of the house is affected are entitled to a subsistenceallowance in kind (rice) for a period of 3 months if the family remains andrebuilds on the original homestead and for a period of 6 months if the familyrelocates.

4.28 Transport allowance

- All relocating families shall receive assistance for the move from the originalhomestead to the new settlement area, to a maximum of 40 US$ per family.The assistance shall be provided as transport facilities or in cash.

4.29 Rehabilitation

All project affected persons in the age group of 1 7-21 years and relocating toa new settlement area are eligible for training assistance. Payments fortraining programmes will be made directly to the training institutes indicated.In general 1 min VND is allocated per PAP and at least 30 per cent of thetraining assistance will be reserved for women.

C. Compensation matrix

Table 4.08: Compensation Matrix

Type of loss Application Entitled person Compensation

1. Arable land Less than 50 per cent of land Farmer/title holder Cash compensation for lost land atholding lost whilst remaining replacement costarea is economically viable

More than 50 percent of land Farmer/title holder Land for land, Compensation by receiving aholding lost new parcel of land with equivalent acreage-

and crop productivity or cornpensation incash if requested by the PAF. Project willacquire entire original land

Tenant/lease holder Land for land for remaining period of thelease or compensatior in cashi to amaximum of 30 percent of the land value

2. Residential land Remaining area larger than 60 Occupant/title holder Compensation in cash at market valuesq.m.

Remaining area smaller than 60 Occupant/title holder Compensation in cash at market valuesq.m. but house unaffected

Remaining area srnaller than 60 Occupant/title holder Land for land. Compensation by receivin g asq.m. and house affected plot of 60 sq.m. in a nearby resettlement

area with adequate physical and socialinfrastructure. If the original residential areais larger than 60 sq.m. cash comnpensationfor the difference in size will be given orcompensation in cash for the entire land andaffected structures. Subsistence allowance6 mth, support in shift. Eligible for traininig

I\)


Occupant/title holder Compensation in cash at market value to bewanting to relocate to paid directly to seller after approval localsite of own choice authorities. Subsistence allowance 6 mti,

support in shift. Eligible for training

Tenant owning the Compensation for lost house and attachedhouse on the assets in cash or in building materials.residential land Entitlement to a plot of 60 sq.m. in nearby

resettlement area. Subsistence allowance6 mth. Support in shift. Eligible for training

3. Commercial land Plots used for business, limited Businessman/title Compensation in cash at market valueloss holder

Plots used for business. Businessman/title Land for land. Compensation by receiving aRemaining area insufficient for holder plot of sufficient size for businesscontinuity continuation in market area of resettlement

area or at location comparable to previoussite or compensation in cash at replacernentvalue if so requested. Subsistenceallowance 6 mth. Support in shift. Eligiblefor training

4. Structures Structures affected. Remaining Owner/occupant Compensation in kind ibuilding materials) orplot size larger than 60 sq.m. in cash to rebuild structure. Subsistenceand remaining structure viable allowance 3 mthfor reconstruction

Owner/absentee Compensation in kind (building niaterialsl tolandlord rebuild structure

_ Tenant Subsistence allowance 3 mth

"3c(0


Structures affected. Remaining Owner/occupant Compensation by receiving a plot of 60plot size smaller than 60 sq.m. sq.m. in nearby resettlement area with

adequate physical and social infrastructure.Sufficient building materials provided toconstruct a hiouse, assistance inconstruction or total cornpensation in cashi ifrequested. Subsistence allowance 6 mth.Support in shift. Eligible for training

Owner/absentee Compensation by receiving a plot of 60landlord sq.m. in a nearby resettlement area as

above. Sufficient building materials providedto construct a house. Assistance inconstruction

Tenant Subsistence allowance 6 mth. Assistance insearch for accommodation. 6 mth rent.Eliable for training

Owner/occupant Compensation by provision of buildingwanting to relocated to materials sufficient to construct a house.site of own choice Assistance in construction. Total

compensation in cash if requested. Approvalof local authorities for site identified isrequired

5. Standing crops Crops affected by the widening Farmer/title holder or Compensation in cash at market valueof the waterway tenant/lease holder

Crops affected by spoil soil Farmer/title holder or Compensation in cash calculated on thedeposit tenant/lease holder basis of one full year of production value or

for a longer period if justified (max. 2.5years)

Agricultural labourers Subsistence allowance 6 mth r(permanent)


6. Trees Trees lost Person occupying the Compensation in cash calculated on theland where trees are basis of type, age and productive valuelocated

0

31

5. ENVIRONMENTAL ASPECTS

A. Baseline Assessment

a) Hvdroloqgy

5.01 The main waterways to be improved form, together with the MainBassac, Mekong and Vam Co Rivers, one open hydraulic system. The water levelsin this system are mainly influenced by the tidal movement in the South China Seaand the Gulf of Thailand, the backwater effects of the Mekong River dischargesand the capacity of the system of creeks and canals to convey the tidal flow andthe river discharge. Moreover, local rainfall and irrigation abstractions have theirimpact on the water levels.

5.02 The canals that need deepening and widening for navigation purposeshave relatively small cross-sections and therefore have small conveyancecapacities when compared with the main river system of the Delta. The canalsplay a minor role in the overall hydrodynamic behaviour of the Delta and theimprovement measures envisaged will hardly effect this overall picture although,changes within the canals themselves could be considerable.

5.03 Within the framework of the present study, the modelling of the Deltahas been carried out in order to assess the present situation regarding waterlevels, discharges and salinity intrusion. The modelling has been carried out withthe help of a dedicated version of the DAC model.

5.04 The results of the modelling show that the tidal variation in the canalstend to be considerably smaller than that along the main waterways. Tidalvariations along the Bassac river (Can Tho to Long Xuyen) is in the order of 1 .5 -2.0 m during the dry season. Tidal variations along the canals between Can Tho

and Ca Mau is only 0.5 - 1.0 m. Between Long Xuyen and Kien Luong, tidalvariations during the dry season decreases to approximately 0.5 m.

b) Geomorpholoc-y

5.05 The Mekong Delta mainly consists of very young Holocene brackishwater and marine sediments. Only at the border with Cambodia a narrow belt ofold granite and limestone rock outcrops is found together with white clays ofPleistocene age (ref 1).

5.06 A large part of the brackish water and marine sediments consist ofpotentially acid sulphate soils which contain substantial amounts of pyrite (FeS2).The sediments contain pyrite which was formed in brackish water conditions intidal swamps covered with a mangrove vegetation. Pyrite formation takes placeunder the following conditions:

- supply of iron from sediments carried by the river;- supply of sulphates from the sea;- soil reduction caused by the extensive supply of organic material from the

mangrove vegetation;- alternating levels of reduced and oxidised soil conditions caused by tidal

influences.

32

5.07 Formation of pyrite is a slow process taking hundreds of years. Whencoastal accretion is slow, the conditions favourable for Pyrite formation exist overa long period resulting in the deposition of thick layers of pyritic sediments havinga high content of Pyrite. When coastal accretion is fast, conditions for theformation of Pyrite are short lived resulting in the deposition of a thin layer ofpyritic sediments having a low content of Pyrite.

5.08 The Mekong Delta was mainly formed in the Holocene period whichwas characterized by a period of gradually rising sea levels. In those days thecatchment area of the Mekong river (Southern China, north-east Thailand, Laos,Cambodia) was largely forested and therefore sediment loads were low. In the first3000 years of the Holocene period, coastal accretion was very low resulting in thedeposition of a thick (4 - 5 m) layer of pyritic sediments having a high percentageof pyrite (up to 4%). These thick deposits are mainly found in the Ha Tien plain.The Ha Tien plain is separated from the remaining part of the Delta by an oldbeach ridge running from Rach Gia to the hills of Tri Ton (ref 2,3). The geologicmap of the Delta is presented in Figure 6.02.

5.09 During the last 7000 years, increased cultivation of the Mekong rivercatchment area has resulted in an increase in sediment loads. Furthermore, the seawater level has remained more or less constant. Both these factors contributed tocoastal accretion which formed the remaining part of the Delta with shallow layersof pyritic sediments (0.5 - 2.0 m) with a Pyrite content of 1.0 - 1.5%. The pyriticsediments are underlain by sediments formed during marine conditions.

5.10 The recently deposited sediments south-east of the line Soc Trang-GiaRai do not contain any pyrite. The present rate of sedimentation along the coastreaches 50-100 m/year. In the south-western tip of the Ca Mau peninsular, furtheraway from the river mouth, sedimentation is slower. Here new formation of pyriticsediments is still taking place.

5.1 1 In the central part of the Mekong Delta, the Mekong river has createda classical pattern of floodplains and levees often redistributing the alluvialdeposits by changing course. These alluvial deposits (river and estuarine levees)are usually thin (up to 1.0 m in thickness) and gradually become thinner in thedirection of the floodplains. The alluvial sediments have been deposited on top ofthe pyritic sediments.

5.12 In 1974 the Netherlands Delta Development Team (NDDT) divided theMekong Delta into eight main physiographic units and several sub-units (ref 5).These units are certain landscape units, which are relatively homogeneous ingeological formation, topography, soil and land use. The units through which thewaterways are running are:

- Unit 1. Coastal PlainLevel tidal flats and relatively small areas of sandy ridges along the coast. Thecoastal plain is not directly affected by the Mekong flood. Large areashowever, are subject to flooding at high tides from creeks or river branchesif not protected by natural embankments or artificial levees.

33

Unit 2. Estuarine flood plainLow levee and adjoining swamps or other low land. Levee sediments varyfrom silts to clays. The (former) swamps deposits are mainly heavy clays.Estuarine deposits overlie potential acid clays at depths ranging from 1 m inthe swamps to over 2 m in the levees. Flood levels in these areas usuallyexceed 0.2 - 0.3 m for several weeks at a time.

Unit 3. River flood plainThe extent of the river flood plains is limited, the largest flood plains beingfound in the northern part of the Delta (An Giang Province). Levee depositsare silts and clays, heavy clays are found in the backswamps. Acid soils occurlocally.

- Unit 4. Broad depressionsBroad depressions include a large area in the Plain of Reeds, the Long XuyenQuadrangle and a small part in the Vinh Long province. These areas are partof the estuarine flood plain and are poorly drained. Potential acid sulphate soilsare present within 0.5 m of ground level. Parts of these depressions remainflooded up to January/February. Those bordering in the Long XuyenQuadrangle are influenced by salt water intrusion during the dry season.

5.13 The waterway stretches which are to be dredged pass through thefollowing geomorphological units:

1. The Cho Gao canal runs through a high tidal flat into a low tidal flat;2. The Cho Lach canal crosses the levee of the estuarine flood plain at a low

place to connect two river branches;3. The Mang Thit and Ni Co Lai canals connect the Mang Thit river with the Hau

Giang river. The Mang Thit canal starts in the centre of the broad depressionof the Cuu Long river where slightly acid sulphate soils are found close toground level. The Mang Thit canal runs south-west where it connects to theNi Co Lai canal which cuts through the levee of the estuarine flood plain;

4. The Xa No carial, runs from the Can Tho creek to the Cai Tu creek. It followsa wedge of the estuarine flood plain running into the broad depression. Theestuarine plain may have been formed by an earlier estuary which silted uplater;

5. The Cai Tram canal cuts through a very acid part of the broad depression. TheSong Tram Canh Den canal runs south-west through an acid part of the broaddepression, a small part of the low tidal flat of the coastal plain and finallythrough an area covered by peat;

6. The Lap Vo canal cuts through the estuarine flood plain;7. The Rach Soi-Hau Giang canal in the direction of the Gulf of Thailand cuts

through the estuarine flood plain, enters the broad depression having acid soilsand near the Gulf of Thailand cuts through the high tidal flat of the coastalplain;

8. The Rach Gia to Ha Tien canal starts in the high tidal flat of the flood plainnear the town of Rach Gia and continues through the broad depression withvery acid soils. At the town of Kien Luong, the Kinh Ba Hon cuts through thesaline swamp of the coastal plain entering the Gulf of Thailand.

34

5.14 Based on the geomorphological deve!opment of the Delta, thick layersof pyritic sediments are expected in stretch 8: Rach Gia - Ha Tien canal duringdredging. Pyritic sediments of slightly shallower depth may be expected alongstretches 3 to 7. No pyritic sediments are to be expected in stretches 1 and 2:Cho Gao and Cho Lach canal.

c) Soils

5.15 In the course of the last 400 years, increasing areas of the MekongDelta have been reclaimed for agriculture by removing the natural vegetation(principally Melaleuca forests). The slash and burn technique used, also resultedin the burning of peat in the broad depressions. In the second half of the 1 9thcentury to present, a dense network of canals was dug for transportation,irrigation and drainage purposes. The disappearance of peat as a natural waterbuffer together with the increased drainage through the canal network resulted ina lowering of the dry season ground water levels throughout the Delta.

5.16 In the broad depressions where pyritic sediments were only coveredby a thin layer of alluvial sediment, lowering of the dry season ground water levelsresulted in exposure too atmospheric oxygen followed by oxidation of pyritereleasing large amounts of acidity. In the levees of the river- and estuarine floodplain, air-exposure of pyritic sediments was limited since the pyritic sediment iscovered by a thick layer of alluvial sediments.

5.17 Depending on the redox-conditions in the soil and time of oxidization,the end-product of the oxidation of Pyrite can be:

- ferrous iron, sulphate and hydrogen ions;- straw-yellow mineral Jarosite (K(FeY3(SO4)2 (OH16 ), sulphate and hydrogen ions;- ferric-(hydro)-oxides, sulphate and hydrogen ions.

5.18 The pyritic sediments in the Mekong Delta are all heavy claysconsisting mainly of.silicon- and aluminum-oxides. At low pH values, the clay-minerals are not stable resulting in the release of soluble aluminum species.

AI(OH)3 C.ay.m-i,eras + 3 H+ --> Al3+ + 3H20

5.19 In the USDA classification, the pyritic sediment is described as thesulphitic horizon (characterized by the permanently reduced conditions and thepresence of Pyrite). The oxidised pyritic sediment is indicated as a sulphurichorizon (Jarosite being present and pH below 3.8). Acid sulphate soils arecharacterized by the depth of the sulphitic and sulphuric horizons. A firstdistinction can be made between potential acid sulphate soils (PASS) and actualacid sulphate soils (AASS). The classification of acid sulphate soils in the MekongDelta is based on the USDA classification (see Table 5.01).

5.20 Several soil maps have been prepared of the Mekong Delta, includingthe soil map of the Mekong Delta (scale 1:250,000) by the National Institute ofAgricultural planning (NIAP) in HCM-city (ref 6) and the Soil Map of the Trans-Bassac area, prepared by the University of Can Tho (ref 7). Both maps are mostlybased on the USDA soil classification.

35

Table 5.01: Acid sulphate soils in the Mekong Delta (USDA)

Code Soil type Depth to Sulphitic Depth to Sulphurichorizon horizon

[cm] [cm]

Sp, Severe potential acid sulphate soil 0-50

Sp2 Potential acid sulphate soil 50-100

Sj, Severe actual acid sulphate soil 0-50

Sj2 Actual acid sulphate soil I 50-100

5.21 The soil map prepared by NIAPP identifies eight main soil units aspresented in Table 5.02.

Table 5.02 Main soil units in the Mekong Delta (NIAPP)

Soil unit Percentage ofMekong Delta

Sandy soils 1.1

Saline soils 19.1

Acid sulphate soils 41.0

Alluvial soils 30.4

Peaty and Muck soils 0.6

Grey soils 3.5

Red-Yellow soils 0.1

Eroded soils 0.2

5.22 Based on the soil map of the Mekong Delta by NIAPP, AASS andPASS are encountered in the following stretches along the distances as presentedin Table 5.03.

Table 5.03 Occurrence of AASS and PASS in canal stretches (km) (NIAPP)

No. Stretch Sp, Sp2 Sj, Sjh

1 Cho Gao canal .

2 Cho Lach canal . -

3 Mang Thit + Ni Co Lai canal 0.8 1.0 9.0

4 Xa No canal 2.8 .

5 Cai Tram canal 0.8Song Tram Canh Den canal - 5.8 23.5

6 Lap Vo canal 2.5

7 Rach Soi-Hau Giang canal . . - 19.8

8 Rach Gia to Ha Tien canal 28.5 25.0Ba Hon canal - 5.0 0.8

Total 4.4 2.5 40.3 78.1

36

5.23 As can be seen from the Table 5.03, acid sulphate soils are crossedalong almost the entire sTretch 8: the Rach Gia to Ha Tien canal together with theBa Hon canal. Soils along this canal equally consist of Sj, and Sj2 soil types. Lessacid sulphates soils are crossed in stretch 7: the Rach Soi-Hau Giang canal withmainly Sj2 soil types. The same length of acid sulphate soils are encountered instretch 5, mainly consisting of Sj2 soil types.

5.24 The water quality of canals, creeks and rivers crossing acid sulphatesoils is strongly affected by the presence of these soils. Acidification of the watersis characterised by a decrease of pH together with an increase of theconcentration of soluble aluminum, ferrous- and ferric-iron and sulphate. Therelationship between pH and soluble aluminum and iron is controlled throughchemical equilibria, mainly the precipitation of the hypothetical mineral AISO,OHand gibbsite Al2(SO4)2.

5.25 The amount of acid water entering the canals depends largely on thetype of acid sulphate soil and landuse in the area.

d) Water and Sediment Quality

General

5.26 Water quality is determined by contents of ions, dissolved, andsuspended materials. The water quality in the canals is mainly determined bysalinity, acidity, organic and inorganic compounds. Information about waterquality is needed to estimate the effects of the dredging on it, in order to predictthe impacts and propose effective mitigating measures. They will be describedbelow.

5.27 Very little data is available on the general water quality in the differentwaterways. No data was found of samples that were regularly taken at the samespot and analysed over a long period of time, (not even over one year). Thisconsiderably hampers the preparation of the impact assessment in relation towater quality, since the canal related ecosystems are strongly influenced by thewater quality in the wet and the dry seasons.

5.28 In addition to the water quality data of the Xa No canal that wascollected in the framework of the MDMP (see Table 5.04) more data was obtainedfrom Tables 5.05 to 5.09 showing data of recent (1995) water quality surveyscarried out by the Can Tho University in the waterways under consideration. Thisinformation does not allow for gathering information of water quality parametersduring the different seasons.

Table 5.04: Water quality Xa No canal

Date Ph TSS Cond Ca Mg Na K + Alk Ci So0 2 Total Fe Total N Total P St(mg/II (Ps/ml (meq/lll Imeq/11 jmeq/ll Imeq/1 Imnq/ilq meql/i 1mg/Il (mg/ll irnig/li lIl)

At Vi Thanh

19/Jun 7.20 118 254 1.05 0.73 0.65 0.046 1.386 0.404 0.756 3.17 0.776 0,167 2.4015/Jul 6.85 93 356 0.87 1.14 0.83 0.096 0.865 0.716 1.185 1.40 1.010 0.229 11.29

At N 14500 canal

20/Jun 6.97 116 290 1.06 0.99 0.80 0.050 1.156 0.433 1.237 2.97 0.713 0.139 2.5315/Jul 6.06 258 307 0.58 1.16 0.93 0.096 0.243 0.714 1.938 4.32 1.140 0.14G 6.08

At N62 canal

19/Jun 7.06 92 278 1.06 0.87 0.75 0.047 1.241 0.377 0.831 2.19 0.682 0.104 1.9715/Jul 6.68 117 378 0.99 1.51 1.03 0.106 0.630 0.739 1.922 4.41 0.679 0.097 11.25

At N4000 canal

20/Jun 6.95 152 302 1.06 1.05 0.75 0.053 1.093 0.355 1.466 3.58 0.839 0.165 2.29

At Thac Lac bridge

19/Jun 6.99 50 342 1.18 1.12 0.95 0.056 1.205 0.581 1.582 1,89 0.537 0.115 4.0915/Jul 6.58 144 391 0.93 1.42 1.20 0.116 0.67 0.887 1.045 3.18 0.705 0.127 10.85

At Duc bridge

1 9/Jun 6.98 60 331 1.01 1.02 1.15 0.056 1.276 0.749 1.152 1.76 0.503 0.121 2.03

Source: Environmental Cournterpart Toarn IMDMP), 1992

_w

38

Table 5.05: Water quality in Mang Thit River, Vinh Long province

1. Tich Thien Station

ParameterDry season Wet season

Salinity Ippi) 0.00 000

pH 7.00 7,00

Secchi disk visibility (cm) 20.00 12.0

N-NH, (NH,+NH,') (ppm) 0.10 0.10

P-P0,3 Ippm) 0.30 0.18

SO,' (ppm)

Fe,(Fe*' + Fe") lppm) 1.78 3.40

COD (ppm) 7.20 6.00

Heavy metals

Table 5.06: Water quality in Cai Rang river & Xa No canal, Can Tho province

2. Can Tho Stadron 3. Vt rmhh StaticuiParameter

Dry eason Wet season Dry season Wet seson

Salinity tpptl 0.0 0.0 0.0 0.0

pH 7.5 7.0 7.0 7.0

Secchi disk visibility (cm) 28 42.0 14.0 12.0

N-NH,, (NH, . NH. ) (ppmi 0.40 1.70 0 26 0.04

P-PO0, (ppml 0.26 0.36 0.20 0.22

SO,' tppm)

Fe, (Fe' t Fe'" (ppm) 2.88 0.92 2.82 2.4

COD (ppm) 10.8 11.2 11.6 11.2

Heavy metals

Source: Xuan, L.N., Faculty of Fisheries, University of Can Tho (1995)

Table 5.07: Water quality in Cai Lon river, Kien Giang province

4. Ong Su S. Go rLAO (fight *klet a. Go Qua* (is" side)

| Frameter Dry season Wet seaon Dry season Wet season Dry season Wet season

Salinity (pPt) 10.56 2.24 7.08 0.45 7.04 0.45

pH 7.5 6.4 7.6 6.8 7.5 6.6

Seccis disk visibility (cm) 10 25 50 30 50 22

N-NH,, (NH,+ NH.) (ppm) trce 0.0 0.0 0.0 0.0 0.0

P-PO- (ppm) 0.15 0.30 010 0.35 0.10 0.30

Fe, (Fe" + Fe'"I (ppm) 0.2 0.3 0.15 0.30 0.15 0.30

COD (ppm) 14,0 21.4 8.8 10.4 11.2 8.8

Source: Hang, T.K.. Aquaculture Research Institute N02 (1991)

39

Table 5.08: Water quality in Trem river, Minh Hai province

7. Tac Thu, Thoi BinhParameter Dry season Wet season

Salinity (ppt) 16.5 2.0

pH 7.0 7.3

Secchi disk visibility (cml 32.0 14.5

N-NH3T (NH,+ NH, *l (ppm) 0.44 0.20

P|PS2 (ppm) 0.38 0.14

SOV lppm) |e (Fe" + Fe3 ) (ppm) 1.25 2.5

COD (ppm) 7.2 7.2

Heavy metals

Source: Thuong, N.V., Faculty of Fisheries, University of Can Tho (1990)

Table 5.09: Water quality in Cai San canal

8. Thot Not Station 9. Linh Quynh Bridge 10. Dong Ho Station______(1) (2) (2)

Parameter Dry season Wet season Dry season Wet sea- Dry season Wet season

son

Salinity (ppt) 0.0 0.0 0.96 0.13 21.12 20.16

pH 7.5 6.5 7.2 5.3 7.8 7.8

Secchi disk visibility (cml 41.5 70 30.0 80.0 50.0 90.0

N-NH,T (NH,+ NH,') (ppm) 0.08 0.05 0.0 0.0 0.0 0.0

P-PO,3 (ppm) 0.18 0.16 0.10 0.20 0.15 0.15

SO.2 (ppm) . . . .

FeT (Fe" + Fe') (ppm) 1.46 0.44 0.20 0.25 0.20 0.20

COD (ppm) 8.2 8.8 14.4 4.8 12.0 16.8

Heavy metals . .

Source: (1) Xuan, L.N., Faculty of Fisheries, University of Can Tho (1995)(2) Source: Hang, T.K., Aquaculture Research Institute N'2 (1991)

5.29 Bottom samples have been taken in the canal stretches to be dredgedat the locations indicated in Figure 5.01. Results of the analyses show that theconcentrations of most of the heavy metals as well as pesticides are lower thanthose considered internationally acceptable for whatever use. Tables 5.10 and5.11 present the results of the bottom sample analyses.

There is one exception and that is the concentration of nickel which appears to berelatively high. When the nickel concentrations are compared to thoseenvironmentally acceptable in Holland, one discovers that the soil falls into thecategory "Class 3" material which is classed as polluted.

N

0 ~~~CAMBODIAXX

-z~~~~~~~~~~~~~~~~~~~~~~~~~~~Iu

T't/ ,Hu .:

GU rLF OF o am n

.THA IL AND PAVN

50 km'

Figure 5.01: Locations of bottom sampling

41

The bottom samples were all analysed in Viet Nam by EPC and the results arepresented in Tables 5.10 and 5.1 1. The high concentrations of nickel weresomewhat suprising and therefore it was decided to analyse a few samples in theNetherlands. The results of the analyses in the Netherlands showed that thematerial was a "Class 0" or a "Class 1 " material which is unpolluted and thereforecan be placed on arable land. In addition, the concentrations of nickel were farlower than that measured in Viet Nam which accounts for the lower classification.

It can be concluded that is will be necessary to execute a more detailed samplingprogramme and laboratory analyses on heavy metals and pesticides. The resultsshown in Tables 5.10 and 5.11 are only from botton samples and therefore it isrecommended that in the future bottom samples are also taken over the vertical.

Table 5.10: Heavy metals in the waterways

Parameter Results jmg/kg|

1 la 4 9 12 14 20

% of Dried sample 51.61 28.09 43.05 24.52 52.26 47.40 22.48

Cr 67 85 61 79 65 69 45

Ni 120 150 92 110 120 120 81

Cu 39 67 39 33 31 32 33

Pb 38 160 200 38 29 30 49

Hg 0,16 0.22 0.27 0.27 0.10 0.03

Table 5.11 Pesticides in the waterways

Parameter Results Log/kgl

1 4 9 12 14 20

Lindane 1.77 3.07 15.93 4.13 2.32 0.44

Aldrin 1.40 2.42 1 .31 1.69 3.61

Dieldrin 3.34 4.67 5.75 0.96 2.09 5.02

Endrin 4.59 7.99 3.76 1.05 1.99 4.57

DDE 2.57 3.46 2.72 1.08 1.60 3.76

DDT 5.49 1.91 1.18 1.42 5.64 8.50

Alfa beta endosulfan 1.76 3.66 0.34 0.90 2.46 1.92

42

Nutrients

5.30 Data suggests that there are no high amounts of nutrients in anyperiod of the year. This means that the waters are not unacceptable polluted by'P' (max. of 0.4 mg/I) or 'N' (max. of 0.5 mg/I). In all the waterways there isalways a certain water movement, throughout the year due to tides and becausethey have open connections to the main rivers and the sea. Although the relativelyhigh amounts of fertilisers (80 - 1 20 kg/ha/year) and Luman waste flow directlyand/or indirectly through the different waterways, most nutrients are efficientlytransported to the sea. According to the investigations by the Mekong Committee,Water Quality Monitoring Project the maximum average total dry season nitrogenconcentration in the main streams (Mekong and Bassac) is 0.32 mg/I rising to 0.37mg/I during the wet season near Tan Chi and My Tho.

5.31 The total phosphate concentration in the waterways was about 0.14mg/I during the dry season rising to 0.2 mg/I in the wet season. The nitrate andphosphate concentrations measured by EPC at several stations do not show highervalues which indicates that the Mekong waters are slightly contaminated bynutrients (unpolluted rivers have phosphate levels below 0.01 mg/l). However, thenutrient content is still very low when compared to contaminated rivers like theriver Rhine where at the Dutch-German border values up to 21 mg/l total N, andup to 3.6 mg/I total P are measured.

5.32 In the canals, especially in ponds in the paddy areas and populatedareas, nutrient levels in surface water are much higher. N-concentrations of 0.1 -0.3 mg/l, and in some places over 1.0 mg/I were found. Phosphate concentrations

of 0.8 mg/I maximum and maxima of slightly over 1.0 mg/l nitrogen concentrationwere found. The WHO's guideline for nitrate concentration in drinking water is 10mg/I. The World Heath Organisation (WHO) does not consider phosphates indrinking water. In guidelines concerning several countries, concentrations of 0.7(EEC-standard) to 5.0 mg P200/I (Trinh) are mentioned. The limit for Carp cultureponds is 0.26 mg P/I (US-standard).

5.33 In terms of human health risks, the present levels of nutrients in therivers, canals and even the fields are still below dangerous levels. Water containinga total P above 0.15 mg/I and a total N above 0.1 mg/I must be consideredeutrophic, which explains the presence of the different biota in the water bodies.Waters with higher levels of nutrients are more productive and are thereforeendangered by contamination of water hyacinths.

Salinity

5.34 Extensive studies have been carried out in Viet Nam on the salinityintrusion in the Mekong Delta, amongst them the Mekong Delta Salinity IntrusionStudy Project (1 983-1991) and the Thematic Studies on Water Resources Manage-ment and on Salinity Intrusion carried out in the framework of the Mekong DeltaMaster Plan (1991-1993). Modelling studies have been carried out to assess theimpact of water use scenarios on the salinity intrusion (see Figure 1.3). Historicaldata as well as the model results indicate that in the Cho Gao canal, the Rach Gia -Ha Tien canal and the Song Trem Canh Den canal will contain permanent or

during certain periods of the year in the dry season brackish to salt water. Thesalinity is of major importance for the presence of aquatic biota.

43

5.35 In order to get a better impression of the salinity intrusion in thewaterways for the existing situation and future water management scenarios,additional modelling has been carried out. With this new model the impacts ofcanal widening/deepening on hydraulic and salinity conditions were determined.

5.36 Salt intrusion especially during the dry season causes problems foragriculture and reduces the possibilities to use water for other (household)purposes. Some increase in salt intrusion can be expected due to the growingdemand for fresh water by the expanding agriculture sector. The construction offlap valves to prevent salinity intrusion as foreseen for the region south east of theChac Bang canal will significantly affect the intrusion of salt water in the Xa No,the Chac Bang canals and the water bodies connected hereto.

Pesticides

5.37 The expansion of agricultural efforts in the Mekong Delta, and theintroduction of HY-rice varieties show an increasing need for pest control. Everyyear, thousands of tonnes of chemical pesticides are used in the Delta. It can beexpected that the use of pesticides will continue to increase every year.

5.38 The Organo chlorines like DDT which contain pesticides areparticularly dangerous. They are persistent and accumulate in the fatty tissues ofanimals and man. High levels of these pesticides in tissues is toxic. Also organismsthat consume other organisms accumulate higher levels of these chemicals in theirtissues. For instance, birds of prey and fish eating birds are affected by high levelsof these pesticides and are not able to reproduce. Man too, being at the end of thefood chain will accumulate pesticides in his body. This affects his health andunacceptable amounts of pesticides may also be found in mother's milk. It isgenerally accepted that these pesticides are very dangerous and therefore mostcountries throughout the world have banned the use of organo chlorine's.

5.39 Although many pesticides are banned and the use of others isrestricted by decision of the Ministry of Agriculture and Food Industry of Viet Nam,(Decision N23/BVTV-KHKT/QD 1 992)(ref. 26), organo chlorines such as lindane,and endosulphan (possibly DDT also) are still used.

5.40 Pesticides have been studied in the ground of the Hau Giang provinceby EPC in collaboration with the provincial department of sciences in 1 989-1992(Ref. 25 Vol 5) and concentrations of 3.30 pg/l were recorded along the Xa Nocanal near Vi Thanh. For drinking water the maximum level in most countries is0.1,ug/l. Because sampling was carried out several weeks after crop spraying themaximum concentrations in the canals could even be much higher. Other stablepesticides are often more toxic to other organisms than the target ones e.g.Pyrirthroids are highly toxic to cold blooded organisms (fish and crustaceans). Allthose pesticides will affect organisms such as fish, shrimp and other crustaceans.The levels of concentrations of pesticides found in different types of surface waterduring the EPC study is alarming. However, concentrations of pesticides in thebottom material, that has been sampled during the present study, are lowaccording to international standards.

44

Acidity

5.41 Acidity washed into the canals may cause massive kills of fish,shrimps or crabs in canals or river/estuarine/coastal areas receiving acid drainagewater (ref 10,1 1,12). Effects of water acidity on (European) fish is illustrated inthe Table 5.1 1.

5.42 Research on the toxicity of acid water has been carried out inAustralia. Acidity is caused by high amounts of aluminium, iron and HW. These ionsare very toxic to most aquatic life. In parts of north eastern Australia the onset ofheavy rains causes a "first-flush" run-off and drainage of phytotoxic water withproperties including low pH and high concentrations of dissolved aluminium. Thesewaters have caused massive fish kills (ref 10, 11, 12). In addition, an ulcerativefish disease, epizootic ulcerative syndrome (EUS), has shown a pattern of seasonalrecurrence in eastern Australia which also relates to the onset of rains.

5.43 The disease is also spread over South east Asia. It is thought thatchemical properties related to acid water causes skin damage in which anoomycete fungus, Aphanomyces sp., can invade and cause the ulcers (Callinan etal 1 992). Other studies also mention fish kills and EUS as the result of run-off oftoxic acid water. No information was found about the resistance of the fishspecies and other biota present in the Mekong Delta against acidity. This impliesthat no strict limits can be defined about the tolerance of the species concerned.Eggs and larvae are supposed to be somewhat less resistant to toxic acid waterhowever, there is no firm evidence supporting this. Only the measured value of pH3.8 in the Rach Gia - Ha Tien canal and the presence of fish in that canal at thesame time suggest a certain resistance of at least some fish species present in theDelta.

e) Aquatic Ecosystems

5.44 The Me 1kong Delta has a wide variety of aquatic habitats, includingrivers and their flood plains, inland swamps, paddy fields, irrigation and drainagecanals, waterways and artificial ponds, estuary and coastal zone. Therefore itshould be a very suitable environment for natural biota.

5.45 Most of the species that still are found in the waters of the MekongDelta are 'estuarine dependent'. They developed migration and reproductionpatterns that are strongly influenced by the river regime and the tides. Based onwater quality (salinity and acidity), three aquatic environmental zones may beidentified in the area in which the waterways proposed for improvement aresituated (see Figure 5.02):

- Fresh water ecological zone, occurring in stretches 4, 6, 7;- Brackish water ecological zone, occurring in stretches 1, 2, 3, 5, 7, 8;- Acid water ecological zone, occurring in some places along stretches 8 & 5.

45

5.46 Roughly the groups of species that make up the estuarine fauna are:

- Freshwater species tolerant to a limited salinity;- Species living as adults in fresh water, but need brackish water during their

larval development like de Giant fresh water prawn;- True estuarine species that complete their life cycle entirely in the estuary;- Species tolerant of a wide range of salinities;- Marine species which spawn in coastal waters, but live in the estuary as

juveniles;- Marine species which can stand some decrease in salinity. They often visit

estuaries because of their richness in food.

5.47 At the start of the rainy season the acidity tends to increase inwaterways concerned, preventing the presence of more sensitive species.

5.48 It must be postulated that almost the complete nature and naturalvalues in the Mekong Delta is destroyed or has become desperately endangered.Nature generally is considered only as a source for wood, animals and-otherproducts to consume. During the field trip of 6 days almost no birds, no mammalsand almost no other animals like reptiles were observed. Only at some places werefrogs heard. The impression gained was that even aquatic species like fish andshrimps suffer from over-fishing and possibly the use of pesticides and lack ofsuitable habitats they need during their life span.

5.49 To obtain a better and up to date impression of the environment inand along the waterways a field trip was carried out in October 1 995. Attentionwas paid to the following items in and along the waterways:

- presence of visible submergent vegetation;- presence of visible emergent vegetation;- presence of floating vegetation;- presence of vegetation along and on the banks of the waterways;- the used fishing.methods;- presence of fish, birds and other biota;- presence of settlements;- pollution by floating organic and inorganic waste.

5.50 Moreover the following parameters were measured/estimated:

- the E.C.;- the visibility;- the colour of the water;- the current speed and direction;- the width of the waterway.

46

5.51 The results of this survey are summarized below:

Submerqent VeoetationSubmergent vegetation was only seen in the stretches 4 and 5. The plantslook very simi!ar to Ceratophyllum sp. Also some nymphaidae was observedin the southern part of stretch 4.

Emergent VeqetationEmergent vegetation was found along all the waterways. To this the Nipapalm (Nipa fructicans), Cane (Sagarum officinalis) some graminea andcyperacea were reckoned. The Nipa palm was found in almost all waterways.It may be expected that it has been planted by man in the more fresh parts ofthe water bodies.

Floating VegetationThe Water Hyacinth and, at some places, a few Azollidae were observed. TheWater Hyacinth is more abundant in the southern part of stretch 4. It isenvisaged that this species will increase due to the growing use of nutrientsthat is expected as a result of increasing population and agriculture efforts.

Vegetation on the BanksVegetation on the banks is dominated by planted trees. Mainly Coconut,different species of shade and wood providing trees, Bamboo and Eucalyptustrees were observed. A marking tree is the Kapok. Besides those, fruit treespresent everywhere in large numbers. Amongst these: Papaya, Banana, Citrus,Mango are dominant. Where houses have a yard, the vegetation is relativelyrich and forms a nice looking border along the waterways. Due to theirelevation the banks are suitable to cultivate Sugarcane. This is observedespecially along the Mang Thit canal.

FisheriesFish is an important source of proteins for the people living along thewaterways. Most of them have some kind of fishing gear. Fishing rods madeof bamboo, cast nets and gill nets can be observed in relatively large numbers.Also at many places so called bushes are planted, consisting of branches andtwigs etc. in a square, in which Water hyacinths and other floating andemergent material grows. When the water falls, a net is set around the bushto catch the shrimps and fish that took shelter in it.

The more professional fishermen use scoop nets and trawl nets mainly in theriver stretches of the waterways. Along stretch 4 the yields of scoop net,trawl net and gill net fishery indicated that relatively few and small fishes wereobtained.

Presence of Fish and other BiotaAt many places on the road along stretch 7, small shrimps were dried.Because of the clearness of the water in stretch 8 groups of Climbing perchcould be observed. No other biota like birds, mammals, reptiles or amphibianswere seen at the sampling stations or elsewhere. This is an alarmingphenomena that reduces considerably the aquatic ecological value of thewaterways.

47

SettlementsAlong all the waterways there is a more or less intense presence of humansettlements (houses). At no place undisturbed nature was found bordering thewaterways. At some places along stretch 1 some natural vegetation and otherbiota consisting of small crustaceans, mud skippers have been observed. Thepeople use the water to drink it, wash in it and for all other purposes. All thewaste is discharged to the waters and causes different types of pollution. Dueto the fact that almost everybody tries to catch fish and other animals, asevere impact of man on the water quality and aquatic biota is eminent.

PollutionOnly the visible pollution could be observed. Although most waste lands in thewaters, at most places only little pollution of solid waste is found, most of itbeing organic, like coconut shells etc.

Electric ConductivityThe conductivity of the water was measured at the sampling points. Despitethe wet season, high salinities were found in stretch 1. The presence of somemangrove vegetation, barnacles and marine crabs on the banks in this stretchindicate that this is a permanent situation.

Visibility and ColourThe visibility gives information about the possible presence of acid water.Although more clear water was found in stretch 5 and 8 it could not beconfirmed whether this was caused by acidity. The pH was not measured. Thecolour gives information about suspended sediments and plankton. Thebrown/grey colour is the result of the high amount of sediment from the mainrivers.

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B. Potential Impacts

a) Hydroloqical Changes

5.52 Increasing the cross-sections of the waterways between Can Tho andCa Mau and between the Bassac river and Rach Gia - Kien Luong will allow a largervolume of Mekong waters entering into the Trans-Bassac area. This impact of thewaterway improvement project is generally considered a positive one since itimproves irrigation conditions and the drainage of acid waters. However, increasedintakes from the Mekong River system will affect salinity intrusion in that systemduring the dry season.

5.53 The hydrological changes and the consequent impacts on irrigationwater availability and salt intrusion will be assessed making use of the dynamichydraulic model DAC, that is being modified for the purpose of the present studiesby:

- refinement of the schematization and introduction of the most recenthydrographic information of the waterways to be dredged into the model;

- extension of the Mekong Delta model with the Vaico river system.

5.54 The latter modification will allow the simulation of the impact, if any,of deepening the Cho Gao canal and cutting the La Creek bends, on the exchangeof waters between both systems.

b) =Acidification

5.55 With respect to canal deepening and widening of the canal bed(including digging up part of the canal bank in narrow stretches) it must be notedthat along certain stretches, pyritic sediment will be dug up and placed on the soilsurface as dredge spoil. In case of removal of a part of the river bank, in certainstretches, a part of .the already oxidised sulphuric horizon will be placed on thecanal bank.

5.56 The use of dredged material for the creation of dry spots in floodprone areas could be considered as a positive impact of the canal improvementworks. However, this positive impact may be undone fully or partially by theacidification.that may result from the disposal of pyritic sediments.

5.57 Experience obtained in the delta, indicates that during the dry seasonacid water is transported by capillary movement to the surface of the dredge spoiland the surface of cracks formed in the clayey sediment. The acidity is precipitatedat these surfaces as white and brown Al- and Fe-salts, mainly sulphates (ref. 8,9).During the first months of the rainy season, the acidity accumulated at thesesurfaces is washed into the canals and neighbouring fields. Acidity washed intothe canals may cause massive starvation of fish, shrimps or crabs in the canal orriver/estuarine/coastal seas receiving acid drainage water from the canal (ref10,1 1,1 2). Effects of water acidity on fish is illustrated in Table 5.12.

49

Table 5.12: Generalized short-term effects of acidity upon fish

pH range

6.5 - 9.0 No effects

6.0 - 6.4 Unlikely to be harmful except when CO" levels are very high (> 1000 mg/l)

5.0 - 5.9 Not particularly harmful except when C02 levels are high 1> 20 mg/l) or ferric ions arepresent.

4.5 - 4.9 Harmful to the eggs of salmon and trout species lsalmonids) and to adult fish when levels ofCa2 , Al are low.

4.0 - 4.4 Harmful to many species adult fish which have not progressively acclimatised to low pHcondition.

3.5 - 3.9 Lethal to salmonids, although acclimatised roach can survive for some time.

3.0 - 3.4 Most fish are killed within hours.

Source: Wellburn, 1988; adapted from C.F. Masson 11991)

5.58 Little is known on the effect of acid run-off from river soil on the yieldin rice fields adjacent to the spoil. Little effect is expected in land consisting ofraised beds.

5.59 The enlargement of present waterways as envisaged where it cutsthrough pyritic sediments will undoubtedly result in acidification. The effect of theinflow of acidity into the canals and adjacent fields should be evaluated in thecontext of the acidifying effect of the landuse and soil types along the canals (ref1 3). Therefore an attempt is made to quantify the acidifying effect of differentforms of landuse on different soil types.

5.60 Tables 5.13 and 5.14 show the acidification as a result of theenlargement of the present canals in relation to the present land use and soil typeof the land adjacent to these canals.

50

Table 5.13: Estimated yearly amount of acidity washed from the dredge spoil asa percentage of the yearly amount of acidity flowing in the theoretical canal fromsurrounding rice fields in mol(+ )/mlyear.

Canal thickness Height A B A+B Bl(A + Blwidth pyritic of amount amount total

sediment spoil acidity acidity amount[ml [ml (ml released by released by acidity (%l

rice fields spoil

narrow 1-5 1 2900 1130 4000 28< 50 2 2900 545 3400 16

1-2 1 2900 1130 /0 4000/2900 28/02 2900 545 /0' 3400/2900 16/0

wide 1-5 1 2900 200 3100 6> 50 2 2900 75 3000 2

1-2 1 2900 . 2900 02 2900 . 2900 0

When pyritic sediment is covered with non pyritic sediment, the run-off of acidified water canbasically be eliminated

Table 5.14: Estimated yearly amount of acidity washed from the dredge spoil asa percentage of the yearly amount of acidity flowing in the theoretical canal fromsurrounding raised beds in mol( + )/m/year.

Canal Thickness Height A B A+B B/(A + B)width pyritic of spoil acidity acidity total

sediment released by released by acidity[ml [ml (m) rice fields spoil [l |

narrow 1-5 1 10500 1130 11600 10< 50 2 10500 545 11000 5

1-2 1 10500 1130 / 0- 11600 10/02 10500 545 /0- 11000 5/0

wide 1-5 1 10500 200 11700 2> 50 2 10500 75 11600 1

1-2 1 10500 11500 02 10500 11500 0

When pyritic sediment is covered with non pyritic sediment, the run-off of acidified water canbasically be eliminated

5.61 The numbers presented in above tables indicate that the additionalacidifying effect of the dredged spoil is rather small compared to the backgroundacidification by rice fields or raised beds. In case of a narrow canal cutting througha thick pyritic sediment layer, the additional acidification is estimated at 28% (ricefields) or 10% (raised beds) of the total acidification. Placement of bunds toreduce the surface of the spoiled exposed to rainfall reduces the additionalacidification to 16% and 5% for rice fields and raised beds respectively.

5.62 When a narrow canal cuts through a shallow pyritic sediment, lesspyritic sediment is brought to the surface. When this sediment is placed on top ofthe spoil, acidification will still occur. When potentially acid material taken from theriver bank is covered with non-acidic spoil from the centre of the canal,acidification is virtually reduced to zero.

51

5.63 When a wide canal cuts through an area with pyritic sediments, bankexcavation, if any, will be small and so will be the amount of sediment that wiilgenerate additional acidification.

5.64 In principle, 50% of the acidity washed from the dredged spoil ispasses directly into the canal. Another 50% is washed into the fields locatedbehind the spoil. Rice fields may therefore be affected by acidified water from thespoil. Rice may suffer from aluminum toxicity or iron toxicity. Although much isknown on the effect of high concentrations of aluminum and iron in the soilmoisture, little is known on the effect of acidified irrigation water. Tuong and Ni(ref 1 41 found that irrigation with acidified water did not harm to rice growing innon-acidic soil in the Plain of Reeds. Hanhart and Ni and Husson and Phung (ref1 5), found that using the right variety and soil and water management practices,rice can be grown successfully under severely acid conditions.

5.65 In the presence of a collector drain between the field and the spoil,acidified water is drained through the ditches back into the canal. In case of landcultivated with raised beds, the first ditch automatically serves as a collector drain.In most rice lands, farmers also excavate a collector drain between spoil and ricefield.

c} Disturbance of Ecosystems

5.66 No protected areas exist along the waterways to be improved. Theaquatic habitats are ideal for an abundant production of various fish andcrustacean species, and for other aquatic organisms. Project implementation couldtherefore have a significant impact on fishery in the main waterways.

5.67 The impact on fishery and aquatic animals is assessed as being oftemporary significance. The results of the fishery and macro fauna surveys thatwill be carried out during the second phase of the present studies, are expectedto enable a quantification of this impact.

5.68 During dredging, water turbidity will increase. This affect fishpopulations and other aquatic organisms and would turn the water temporarilyunsuitable for domestic uses. Certain fish species may suffocate unless they canmigrate to canal stretches where dredging has not yet started. The classicalmistake (from the environmental point of view) dredging operators often make isto carry out dredging in upstream-downstream direction. This leaves no escaperoute for fresh water species, which are gradually pushed into saline water, or aretrapped in highly turbid waters accumulating at locks.

5.69 Along the waterways to be dredged there are some fresh water giantprawn farming areas, mainly along the Mang Thit river, Xa No canal, Mekong andBassac. A careless disposal of dredged material to banks near fish ponds couldcause damage in particular when the dredged materials are acid.

5.70 Improvement of the waterway to Kien Luong is directly related withthe exploitation of the limestone outcrops on the north-western edge of the Delta.These outcrops may accommodate special flora and fauna that will increasingly beendangered.

52

d) Other Impacts

Resettlement

5.71 Resettlement could bring a positive impact on the environment. Canalwater pollution in populated areas in the Mekong Delta is significant. The mainpollutants are organic matter, nutrients and pathogens from domestic wastes,discharged directly into the water. Continued human encroachment (latrines andanimal cages constructed above canals) surface water pollution is expected toincrease. Relocation of indiscriminate settlements away from the former locationwould not only facilitate canal dredging and rural road construction alona canalbanks, but would also allow for better control of water pollution.

Oil and Fuel Spills

5.72 A further source of water pollution could be oil and fuel spills fromdredging machinery,if not properly operated and maintained and no adequatedisposal of used lubricants is employed. An increase in navigation may also giverise to other pollutants such as oil and lubricants. Oil pollution is already noticeablealong intensively used navigation routes.

Bank Erosion

5.73 With the increased navigation, bank erosion could occur due to theimpact of waves intensified by moving vessels.

C. Alternatives/Mitigating Measures

a) Acidification

5.74 The following mitigating measures can be identified.

- Mitigating Measure 1: When pyritic material is merely found in the canal bank(shallow thickness of pyritic sediment), it could be placed on the bank first andthen be covered by non-pyritic spoil. This is probably the case in the Ca Maupeninsular and the area of Mang Thit.

- Mitiqatinq Measure 2: Where the first measure is not feasible, placement ofbunds on both sides of the spoil need to be considered. In this way thesurface of dredged spoil exposed to rain can be reduced, for instance byincreasing the height of the spoil from 1 m to 2 m.

- Mitigating Measure 3: Transport of pyritic material to deeper canal or riverstretches in order to prevent aeration and oxidation of the material. Thismeasure may be very costly. The effect is also not very clear, since there islittle experience with respect to the dumping of pyritic sediments in morevulnerable environments as rivers and creeks.

- Mitigating Measure 4: Excavating a collector drain to prevent acidified waterto flow into the rice fields.

53

b) Aquatic Ecosystem

Bank Excavation

5.75 Bank excavation means the destruction of biota present on and in thebanks. Colonisation and succession thereof has to start from the beginning.Excavation of both banks could considerably affect (commercial) fish stocks andother eatable biota. he following alternatives can be considered:

- to enlarge the canals at one bank only;- to dredge the new canal at another location.

5.76 If the canal is only widened at one side, the other bank will remainuntouched and the biota will still have sufficient room. Although a certain decreaseof biota may be expected, this will be much less in comparison to enlargement toboth sides. Since there are many settlements just along the canals there is at mostplace little room for natural biota left. Enlargement to one side means continuingof the status quo at the other bank.

5.77 From an ecological point of view it would be attractive to concentratebank settlers in villages as this will improve sewage treatment and there will bemore banks for the development of nature and valuable biota. If widening bothbanks of the canal would help in concentrating all the population in villages, anenlargement to both sides may be considered.

Habitat Improvement

5.78 A new canal could be dredged alongside the existing water body,however, there will be some major impacts: (i) there will be more disposal ofdredged soil and more acidity problems can be expected, (ii) there will be more saltintrusion due to the enlargement of the whole water body. If settlement of peopleneeds to be avoided, this solution may be an option for certain stretches. If not so,there will be hardly. any advantages of this solution. It is anticipated that bycreating a new canal newcomers will be attracted and more environmentalproblems will arrive together with these people.

5.79 Much better conditions for aquatic ecosystems can be obtained bycreating shallow water in connection to the main waterway. In shallow water,emergent and submergent vegetation can be planted or will develop naturally (thelatter contains more ecological value) and it also provides a suitable habitat formany other life forms. As a result the fish and shrimp stocks may enlarge whatmeans better yields for the local fishermen. Another important advantage is thepresence of more filtration capacity provided by the vegetation. Pollutants will beeliminated more quickly and partly absorbed by the vegetation itself.

5.80 The best way to create shallow water is to dredge water bodiesconnected to the waterways with an area of at least 0.5 ha each. In such areas,the water movements caused by passing ships are damped. If very little room isavailable, a shallow area could be created in front of the bank or by making slopeless steep than 1 V:3H. With respect to the area, it is stated: the more the better.There is no minimum. All efforts made in this direction mean a certainimprovement of the environmental conditions in the main waterways.

54

5.81 With respect to the development of vegetation in shallow water, thereare good conditions for the development of the Nipa palm (Nipa fructicans). Thispalm is also very useful to men because their leaves can be used for manypurposes. In favourable conditions also the development of mangrove vegetationmay be expected. Together with the Nipa palm such vegetation's are extremelyimportant for fish, shrimps and crabs. Moreover, bank vegetation has an importantprotective function against erosion.

5.82 The recovery of vegetation on the dredged banks can be acceleratedby planting and sowing new vegetation. Based on the observed vegetation duringthe field trip the following species could be used:

- The Nipa palm (Nipa fructicans). Shoots of the Nipa easily can be obtained andplanted. Also it is possible to plant the seeds, but crabs like to eat them. Sofirst the presence of larger amounts of Nipa seed eating crabs must beestimated;

- Bull rushes (Typha spp). Roots and shoots of this species also easily can beplanted. This species is native in Viet Nam, but was not observed during hefield trip;

- In fresh and more acid circumstances Melaleuca leucodendra may be planted.It has to be considered that this tree is wanted by man for many purposes. Sothis species will attract people to remove it;

- In brackish and acid circumstances a small mangrove shrub Exoecariaagallocha may be planted. This shrub will not be used by man and not begrazed by cattle.

5.83 A next step in improving habitats could be considered in combinationwith the resettlement of people living on the banks to be dredged. A system couldbe developed benefiting the people, their needs for fish and shrimps as well asnature and the environment. A new system of dead ending canals could bedredged in a grid that is connected to the waterway. The main concept is todredge a main canal of a certain length and dredge some others perpendicular tothe main one. In this way a more concentrated system of small waterways isdeveloped along which the people can be settled. They remain living on the bankof the water body, while the benefits of concentrated settlements are achieved.It will be easier to organise waste collection and sewage treatment, and there willalso be better opportunities to provide the population of such a new village witha drinking water system and other utilities.

5.84 It would be of great importance for the environment, nature, fish andshrimp stocks in and around the waterways if similar systems could be dredgedas described before to resettle the people. In this systems no fishing, catch or killof any other animal should be allowed. So in those places fish, shrimps and otherbiota can breed and develop. From those sanctuaries they can spread out over therest of the water body to the benefit of the environment and the yields of fish andshrimps caught by the population and the fishermen along the waterways. The fishand shrimps coming out of the sanctuaries will be attracted by the favourablecircumstances as result of the proposed habitat improvement. There they may becaught by the fishermen. The higher amount of provided shelter for the aquaticfauna will also result in a greater biomass of fish and shrimp.

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6. THE WATERWAY IMPROVEMENT PROJECT

A. The Base Case for Waterway Improvement

a) Canal dimensions

6.01 The minimum required characteristic dimensions of the waterwayswere determined in the 1 993 feasibility report. The depth of the waterway was3.08 m below LLWL (Low Low Water Level) and the width at keel level was 34.0m which corresponded with a canal bottom width of 26.0 m. These dimensionswere derived from the ESCAP publication by applying "Guidelines for the designof inland navigation canals", and based on a design convoy consisting of three 250to 300 DWT barges pulled by a 200 HP tug.

6.02 During the past four years cargo flows have steadily increased and thecomposition/character of the inland waterway transport fleet has remained verymuch the same. However, during the same period an important change in policyhas resulted due to the development and official publication of a series of newrules and regulations for the maintenance and use of the Vietnamese InlandWaterways in 1 993. These rules and regulations were presented in a publicationentitled "Some Legal Letters on Inland Waterways", by the Vietnamese InlandWaterways Department in 1995.

6.03 As a part of these rules and regulations, a classification forWaterways was introduced, in accordance with Decision No 347/1D dated May23rd 1992 of the State Science Committee, stating minimum dimensions for a) thewidth, depth and bend curve radius of channels, and b) the horizontal and verticalclearances for bridges and high tension cables. Class IlIl waterways, as describedin the new rules and regulations, can be considered to be the standardized versionof the channel determined in the 1 993 feasibility study.

6.04 The Vietnamese class IlIl canals are in-line with international standardsand will facilitate ihe. projected inland waterway transport under this Project. Theclass IlIl canals will further enable the European standard Class IlIl vessel of 1000DWT, and the Chinese class IV design vessel of 500 DWT to make use of theclassified Vietnamese main waterways. Only the limited bend radius will giverestrictions for the Chinese push units.

56

Table 6.01: Comparison of channel dimensions in various countries

REGIONS VIETNAM CHINA EUROPE

Parameters Design vessel Design canal Class IlIl canal Design vessel Class IV canal Design vessel Class IlIl canall(ml[ml lml lnl lmm] [ml [nil

Length of vessel 38.00 58.00 67.00-80.00

Length of convoy 140.00 . 50.00'

Beam ol vessel 8.50 9.00 8.20

Canal width 26.08 30.00-40.00 40.00 PM l

Draft of vessel 1.60/2.20 1.50 2.50

Depth of canal 3.08 2.50-3.00 2.50 PM '. l

Bend radius [ml 228.00 300.00-500.00 600.00-750.00 PM-''.

Vertical bridge clearance 6.50 7.00 7.00-8.00

Horizontal bridge clearance 30.00 30.00 28.00-30.00

High voltage clearance 9.00 l

Push boat unit* *l At surface

* To match design vessel requirement

57

6.05 When the class IlIl waterway is compared with the waterwaysdesigned in the 1 993 feasibility study, it appears that the design bottom width willhave to be increased from 26.0 to 30.0 m, (preferably at a depth of LLWS - 3.00m, but acceptable at a depth of LLWS - 2.50 m), while the bend radius will haveto be increased from 228 to 300 m, in order to match the minimum classificationrequirements. These rather minor adjustment are considered fully acceptable formatching the official class Ill requirements.

6.06 Another difference is the required clearance for bridges which willhave to be increased to 7.00 m above HHWS. In other chapters the impact of theincreased under bridge clearance and increased bend radius will be worked out infurther detail.

6.07 With respect to the minimum waterway dimensions, adesign/construction water depth of 3.0 m is considered sufficient, while amaximum sedimentation up to a water depth of 2.5 m can be accepted withoutexceeding the class limit. A design bottom width of 30.0 m will be adopted for thecanal, while at critical locations a minor reduction will be considered,corresponding with a width of 30.0 m at a depth of 2.5 m. This depth is relatedto the LLWS level in the different stretches of the waterway. The LLWS is definedas the low water level for the stretch concerned that is exceeded by 95% of alllow waters in that stretch.

6.08 Stable bank slopes were computed using geotechnical parametersobtained from the various soil investigations and assuming the following:

- Bottom of canal at required depth;Top of the bank at 1.50 m + MSL;Water level at LLWL;Ground water at HLWL;Safety factor of 1.

58

6.09 The selected height of the bank of 1.50 m + MSL, is some 0.5 to 1.0m higher than the actual height of the banks. Such an over-height will allow forconstruction of simple roads or the positioning of not too heavy loads on the riverbanks without the immediate risk of slope failure. For larger loads like stonebuildings and roads of a higher class the stability will have to be checked.The steepest acceptabie slopes derived from the stability calculations arepresented in Table 6.02.

Table 6.02: Bank slopes of main waterway stretches

Waterway stretch Calc. minimum slope Selected slope11 : ?l 11: ?I

Cho Gao Canal 1 :3.0 1 3.0

Mang Thit Tra On Canal 1 3.5 1 3.5

Can Tho-Ca MauCai Rang 1 3.0 1 :3.0

*Xa No Canal 1 :2.6 1 :3.0Chac Banh Canal 1: 3.0 1: 3.0Ganh Hao River 1: 3.1 1: 3.25

1:2.0 1:2.5

Lap Vo-Sa Dec Canal 1: 3.0 1: 3.0

Long Xuyen- Rach GiaRach Soi-Hau Giang C13 1 :2.2 1 :2.5

- Rach Soi-Hau Giang Cl 5 1 :1.0 1 : 2.5

Rach Gia By-pass 1 :2.0 1 :2.0

Rach Gia-Kien LuongRach Gia-Ha Tien C18 1 :1.8 1 :2.5Rach Gia-Ha Tien C19 1 : 0.5 1: 2.5Rach Gia-Ha Tien C20 1 : 2.3 1: 2.5Rach Gia-Ha Tien C21 1: 2.0 1: 2.5Rach Gia-Ha Tien C23 1 :0.75 1: 2.5

6.10 Re-alignment, apart from bend corrections, is only considered in thisbase case for by-passing Rach Gia. Preliminary calculations show that constructioncosts of the by-pass canal are similar to those related to the resettlement ofdwellers occupying the banks in Rach Gia town area. In view of minimizing theresettlement and corresponding negative social impacts it has been deemedjustified to include the Rach Gia by-pass in the project. Moreover, the townplanning for Rach Gia, prepared by the provincial authorities of Kien Giang includesthe implementation of the by-pass canal.

59

b) Dredging volumes

6.1 1 The most recent available hydrographic survey results have beencollected for all waterway stretches concerned. Besides the stretch betweenHCMC and Vam Co River (1985) and Manh Thit River (1990) all stretches havebeen surveyed in the period 1992-1995. In stretches with old survey results andthose with high sedimentation rates, verification sections have been surveyed. Theverification survey outcome confirms estimated sedimentation since latest survey.

6.12 Dredging volumes have been calculated for the base case (class IlIlcanal) on the basis of survey results and design cross sections, increased withestimated volume of sedimentation until 1996. The estimate of volumes to bedredged is valued within an accuracy of 20%. The total dredging volumes (inmillion m 3 ) are summarized in Tables 6.03, 6.04 and 6.05.

Table 6.03 : Break-down of dredging volumes Ho Chi Minh City - Kien Luong

CANAL STRETCH FS 1993 CLASS IlIl CANAL[min m31 (m in m31

Cho Gao-Sa Dec 0.287 0.469Lap Vo-Sa Dec 0.505 0.344Rach Soi-Hau Giang 2.433 2.080Rach Gia-Kien Luong 2.854 3.945By-pass Rach Gia 1.140 0.984Sa Dec-Kien Luong (bends) ----- 0.075

Total 7.219 7.897

Table 6.04: Break-down of dredging volumes Ho Chi Minh City - Ca Mau

CANAL STRETCH FS 1993 CLASS IlIl CANAL1mmin3

] [min m3l

Cho Gao-Mang Thit 0.423 0.691Can Tho-Cai Lon 1.414 2.471Cai Lon-Ca Mau 2.176 4.008HCMC-Ca Mau (bends) ----- 0.293

Total 4.013 7.463

Table 6.05: Summary of dredging volumes

ROUTE FS 1993 CLASS IlIl CANAL[min m3] [mln m3]

1. HCMC-Kien Luong 7.219 7.897

2. HCMC-Ca Mau(additional to 11 3.726 6.994

3. Total 10.945 14.891

The dredging volumes shown in Tables 6.03 and 6.04 indicates the dredging volumes for that particu'ar route. In Table 6.05 the totalproject dredging voiumes are shown and as Cho * Goo * Sa Dec Ls common to both main routes, a value ot 287.000m' (Cno Gao - SaDec, FS 1993) and 469.000 m'(Cho Gao - Sa Dec. Class III Canal) these volumes havo been subtracted from the HCMC - Ca Mau rou.re

Ul~~~~~~~~~~~~~~~~6

ct:N )

3-~

Fgr601Ttlde i -

Fiur 60: otl rdgngvlues(icudngpyiicsol

61

c) Acid sulphate soils

6.1 3 A survey has been carried out to assess the occurrence of acidsulphate soils along the canal stretches to be improved. Details of the surveyresults are described in Annex 11-3 to this report. Based on these results estimateshave been made of the volumes of acid sulphate material to be dredged for theimplementation of the Class Ill canal. These volumes are summarized in Tables6.06 and 6.07 and in Figure 6.02

Table 6.06: Pyritic dredging volume, Ho Cho Minh City to Kien Luong

Canal Stretch Bottom level Pyritic Horizon VOLUMEof canal [1000 m

311

Cho Gao 3.85-MSL -3.0 - -3.2m 32Lap Vo-Sa Dec 3.45-MSL -2.2 - -3.8m 361Rach Soi-Hau Giang 3-20-MSL min 7Rach Gia-Kien Luong3.20-MSL -0.5 - -4.Om 2,084By-pass Rach Gia 3.20-MSL minSa Dec-Kien Luong (bends)

Total 2.484

Table 6.07: Pyritic dredging volume, Ho Cho Minh City to Ca Mau

Canal Stretch Botom level Pyftic Horizon Volumeof canal 11000 m

3 )

Cho Gao-Mang Thit 4.00-MSL noCan Tho-Cai Lon 3.85-MSL -1.0 - -2.Om 529Cai Lon-Ca Mau 3.20-MSL 0.0 - -2.5m 1,783HCMC-Ca Mau Ibends)

Total * 2.312

d) Salinity intrusion

6.14 The impact of canal deepening and widening on the salinity intrusionhas been assessed with the help of the dedicated SAL/DAC hydraulic model. Theincrease of the discharge capacities of the Rach Soi - Hau Giang Canal and of theXa No Canal was expected to push back the salt intrusion in these canals.Construction of an anti-salinity weir at Chac Bang (Thoi Binh), that is planned tobe built in the framework of the Quan Lo Phung Hiep scheme has a much biggerimpact on the salinity intrusion in the downstream area of the Can Tho Ca Maucanal system than the dredging work have.

6.15 The results of the salinity intrusion calculations are summarized inTable 6.08 and it can be concluded that the impact of canal deepening is minor.

62

< to 0~~~~~~~~~~~~~

IL

<t _~ -

Fiur .0: yitcdrdgn vlue (lss11zanl

63

Table 6.08: Maximum salinity intrusion under extreme (90%) dry conditions

Waterway Stretch Intrusion 1,000 mg/l NaCI Intrusion 1,000 mg/I NaCIPresent Situation With project

Ong Lon fully fullyCay Kho fully fullyCan Giuoc fully fullyNuoc Man fully fullyVain Co fully fullyLa Creek fully fullyCho Gao fully fullyMekong 2 km u/s Cho Gao sameSa Dec no noLap Vo no noBassac no noRach Soi-Hau Giang 8 km u/s rach Gia sameRach Gia-Ha Tien fully fully

Cho Lach no noMang Thit no noTra On no noBassac no noCan Tho Creek no noXa No Canal no noCai Nhat Creek 2 km u/s Cai Tu noCai Tu Creek fully fullyCay Tram Creek fully fullyNga Ba Dinh Creek fully fullyTrem Canh Den C. fully fullyTrem River fully fullyOng Doc River fully fullyTac Thu River fully fullyGanh Hao River fully fully

e) Bridges

6.1 6 The following bridges do not meet the requirements for the Class IlIlcanal, viz. 30 m horizontal and 7 m vertical clearance.

Table 6.09: Bridges not meeting the Class IlIl clearance requirements.

Waterway Name Actual Clearance (mlVertical Horizontal

HCMC - KIEN LUONG SA DEC 3.3 16.0NANG HAI 6.5 22.5PHI TONG 6.5 25.0KIEN LUONG 5.2 16.0

CAN THO - CA MAU TRINH HUU NGHIA 3.2 21.0DOAN KET 3.2 20.0VINH THUAN 4.2 21.0THOI BINH 5.0 21.0TAT THU 5.0 30.0

64

6.17 Most of these bridges are in poor condition and do not meet the roadtransport requirements neither. For the base case it has been assumed that theexisting bridges will be replaced by concrete bridges meeting the requirements ofthe roads they are part of. Of the two bridges on the Xa No canal (Trinh HuuNghia and Doan Ket), only one is considered for replacement.

f) Lock

6.18 An anti-salinity weir is planned to be built at Chac Bang, thedownstream limit of the Trem Canh Den Canal. The impact of this structure onnavigation is threefold:

- average LAD reduction of 0.3 m in the Trem Canh Den Canal;- obstruction to navigation when the weir is closed;- changed sedimentation patterns.

6.19 Additional dredging requirements due to LAD reduction is estimatedat half a million m3

6.20 The weir will be closed during flood tide in the dry season only.Hindrance to navigation is reduced by replacement of the anti-salinity weir by asail through lock. Costs have been estimated for such a lock, with a chamber of19 x 80 m.

6.21 The impact of the anti-salinity structure on the salinity intrusion ismuch higher than the impact of the canal enlargements.

g) Bank protection

6.22 The vessel speed of the design vessel in the Class IlIl canal is 8.5km/hour. At this speed the ship induced hydraulic loads allow the application ofunprotected or soft-protection slopes. Clay slopes will be subject to limitederosion, and the situation "with project" will be essentially the same as thesituation "without project". Schemes for planting vegetation and thereconstruction of eroded banks with lumps of stiff clay is recommended.

6.23 In the Rach Gia - Ha Tien canal, bank erosion occurs at the locationswhere tributary canals enter this canal perpendicularly. Since these cross-currentsalso cause hindrance to navigation, it is recommended to include in the projectlow-cost flow deflection structures near these confluences.

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B. Base Case Evaluation

a) Resettlement impacts

6.24 The resettlement requirements for the base case implementation havebeen assessed with the help of a comprehensive census and socio-economicsurvey carried out in November - December, 1995. This census was carried outassuming canal widening according to the Class IlIl canal requirements. The censusresults are summarized in Table 6.10 and 6.11 and Figure 6.03.

Table 6.10 Resettlement requirements, Base Case, HCMC - Kien Luong

Canal Stretch Affected RelocationsHouseholds

Cho Gao-Sa Dec -

Lap Vo-Sa Dec 548 258Rach Soi-Hau Giang 2,263 1,077Rach Gia-Kien Luong 749 1 82By-pass Rach GiaBend CorrectionsSa Dec-Kien Luong

Total 3.560 1,517

Table 6.11 Resettlement requirements, Base Case, HCMC - Ca Mau

Canal Stretch Affected RelocationsHouseholds

Cho Gao-Mang ThitCan Tho-Cai Lon 989 687Cai Lon-Ca Mau 1,407 754Bend CorrectionsHCMC-Ca Mau

Total 2,396 1,441

b) Environmental imoacts

6.25 The environmental impacts related to the canal improvement workshave been described in chapter 5 of this report. These impacts are predominantlyrelated to the dredging and deposition of acid sulphate material. The volumes ofthis material as a result of Class IlIl dredging works have been given in theforegoing section. Other impacts, such as loss of macro fauna, natural vegetationand other biota are basically related to the dredging works as such and to a lessextent to the volumes to be dredged. These impacts are therefore consideredsimilar for all levels of improvement of the main waterways.

66

20

/- .rt

S eS \, ,

-J

Figure 6.03 Resettlement requirements for Class 1II improvements.

67

cl Economic evaluation

6.26 The costs of the works, resettlement and environmental mitigationrelated to the upgrading of the main waterways to the Class IlIl level werepreliminarily estimated as follows (in million US$):

- Capital dredging (14,891 m3 a 2.2 US$/m3 ) 32.76- Reduction in dredging (500,000 m3 a 2.2 US S/rn3 , lowering of LAD due to lock) - 1. 10

- Bridges 8.00- Lock 2.50- Navaids 2.54- Resettlement 18.31- Compensation Disposal Areas 0.95- Environmental impact mitigation costs 1.90- Strengthening Waterway Stations for operation and maintenance 5.00- Contingencies 15% (dredging + bridges + locks + navaids) 6.71

TOTAL (million US$) 77.57

- Maintenance Dredging 3.50/year- )&M Navaids 0.75/year- O&M Bridges and Lock 0.35/year- Environmental Management 0.10/year

TOTAL (million US$) 4.70/year

6.27 For the normal and high cargo flow scenario, the following economicparameters have been assessed for the Class IlIl project:

Normal cargo flow scenario: - IRR 11%-B/C (12%) 0.92- NPW (12%) (US$ 5.4 min)

High cargo flow scenario: - IRR 14%- B/C (12%) 1.16- NPW (12%)

US$ 1 1.0 mlnd) Conclusion

6.28 The results of the preliminary economic evaluation as well as theconsiderable resettlement component of the project lalmost 25% of theinvestment costs) gave rise to the need to investigate alternative solutions aimingat cost saving without affecting the principal objective of the project to create ayear around day and night navigable waterway.

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6.29 Savings on project costs could be achieved in principle by:

- reduction of the dredging volumes;- reduction of resettlement requirements;- reduction of the number of bridges to be replaced or rehabilitated;- excluding the lock construction.

The first two cost reductions give the most substantial savings.

6.30 Both savings are most efficiently achieved by the reduction of thecanal width. Reduction of the depth is incompatible with the objective to createa year around day and night navigable waterway. The following alternativewaterway widths have been considered:

I minimum width required for two lane traffic at high traffic densities (26 m)11 minimum width required for two lane traffic at low traffic density (22 m)

6.31 The benefits of the alternative I are essentially the same as for theClass IlIl canal under the present fleet composition. However, future benefitsresulting from larger fleet sizes will be restricted. Alternative II will generate lessbenefits since restrictions to fleet operations will reduce the potential savings ontransportation costs.

6.32 Since transport flows on the HCMC-Kien Luong route are considerablyhigher than those projected for the Can Tho-Ca Mau route, it is recommended toconsider widening alternatives for the two waterways separately. The followingscenario has been proposed for further elaboration, as being the most promisingalternative:

- HCMC - Cho Gao Class IlIl- Cho Gao - Kien Luong 26 m- Cho Gao- Ca Mau 22 m- Rehabilitationtreconstruction of 2 bridges in the stretch Sa Dec - Kien Luong

and of two bridges in the stretch Can Tho-Ca Mau- Lock construction, if any, to be financed by water resources sector

69

The differences between the Class IlIl (base casel and this scenario are summarizedin Table 6.12.

Table 6.12: Difference between Base case and alternative

STRETCH ITEM CLASS IlIl ALTERNATIVE

HCMC-CHO GAO Dredging Volume 440,000 m3 440,000 m3

Acid sulphate soil volume 32,000 m3 32,000 m3

BridgesLockNavigation AidsProject Affected FamiliesProject Resettled Families

CHO GAO - KIEN LUONG Dredging Volume 7,428,000 m3 5,913,149 m3

Acid sulphate soil volurne 2,484.000 m3 2,195,834 m3

Bridges 4 2LockNavigation AidsProject Affected Families 3,560 2,917Project Resettled Families 1,517 1,230

CHO GAD -CA MAU Dredging Volume 6,994.000 m3 4,620,000 m3Acid sulphate soil volume 2,312,000 m3 1,226,000 m3

Bridges 5 3Lock 1Navigation AidsProject Affected Families 2,396 2.123Project Resettled Families 1,441 1,076

6.33 During the project Definition Workshop on February 6, 1 996, theProject Steering committee reviewed the definition and implications of the basecase (Class IlIl waterway) and the alternative upgrading option recommended bythe Consultants. Based on the conclusions of the above workshop and subsequentdiscussion with the PMU-SW and World Bank it was agreed that the alternativeoption (with uniform canal depth of 3.0 m and canal bottom widths of 22 mbetween Can Tho and Ca Mau, 26 m between Cho Lach and Can Tho and CanTho and Kien Luong, and 30 m between HCMC and Cho Lach) would form thebasis for the proposed project definition, environmental assessment, resettlementand cost estimates.

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C. Most Promising Option

6.34 The principal civil and marine works which have to be executed inorder to improve the inland waterway routes include:

Canal Alignment;Dredging and Disposal;Bridges;Bank Protection;River Training Works;Navigation Aids.

a) Canal Alignment

Bends

6.35 The newly defined Class IlIl waterways in Vietnam require minimumbend radii of 300 mn. During the 1993 feasibility study a bend radius of 228 mtogether with a width increase of 3.1 to 6.3 m was calculated to be sufficient forthe design vessel/convoy for the main waterways. If the 300 m bend radius isintroduced there will not be any need for additional widening of the bends due tothe larger radius and already chosen width increase from 26 to 30 m bottomwidth.

6.36 The introduction of the 300 m minimum bend will increase thenumber of bends, that need adjustment. By making use of the 1:5000 maps allbends in the waterways from Ho Chi Minh City to Ca Mau and to Kien Luong werereviewed. By introducing three categories of bends with an insufficient radius,priorities could be indicated for improving the bends (see Table 6.13). Thecategories are:

- Priority l: R < 175 minsufficient radius for "narrow" (one lane) waterways, with speed and load-carrying restrictions when passing or overtaking.

- Priority Il: 175 < R < 225 minsufficient for "normal" channel as calculated for the design vessel/convoy.But sufficient for a "narrow" channel.

- Priority III: 225 < R < 300 minsufficient for Vietnamese Class IlIl waterway, but sufficient for "normal"canal as calculated for the design vessel/convoy.

71

Table 6.13: Critical bends of the main inland waterways

Stretches Canal, river No. Bend location Bend PriorityI Kml radius

(ml

HO CHI MINH - MY THO Te canal 1 (km 3.9) Ong Lon bridge, 150District 8, HCMC

La Creek 2 (Km 52) Thanh Vinh Dong village. 100 ITien Giang Province

La Creek 3 (Km 53) Thanh Binh Sector, 100 IThanh Vinh Dong villageTien Giang province

MY THO - KIEN LUONG Sa Dec R. 4 (Km 163) Tan Loc Sector, 250 IIITan Duong Village,Thanh Hung DistrictDong Thap Province

Rach Soi - 5 (Km 2061 My Thanh village. 50 iHau Giang Thot Not district,Canal Cai San bridge,

Can Tho Province

Rach Gia - 6 (Km 331) Kien Luong Townless, 250 IIIKien Luong Ha Tien District,canal Kien Giang Province.

MY THO - CAN THO Mang Thit R. 7 (Km 1651 Hoi Trinh Sector, 250 IllXuan Hiep village,Vinh Long Province.

Mang Thit R. 8 (Km 166) Sector 8, Hoa Hiep village 250 IIIVinh Long Province

CAN THO - CA MAU Cai Nhat R. 9 (Km 305) Sector Vinh Hao Hai, 50Vinh Hoa Hung village.Vi Thanh District.Can Tho Province (near HoaLuu Confluence}

Trem - Canh 10 (Km 3281 Khanh Thoi village, 250 IIIDen canal Thoi Binh District.

Minh Hai Province

Ganh Hao R. 11 (Km 3551 700 m from Ca Mau Centre 100 I

Ganh Hao C. 12 (Km 355,51 400 m from Ca Mau Centre 100 I

Ganh Hao R. 13 (Km 3561 150 m from Ca Mau Centre 150

6.37 From Table 6.13 it can be seen that 13 bends need improvement:priority I applies for 8 bends, priority 11 does not appear to be present over thestretches studied, while 5 bends have priority ll. All other bends have radii equalor larger than 300 m.

6.38 The first bend listed in Table 6.13 is in fact located outside the areaof the main waterways under consideration. From this location the inland shippingis proceeding to, and arriving from the different loading and unloading facilities inand around Ho Chi Minh City. Therefore this location is important and needs fullattention.

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6.39 Due to the presence of the Ong lIon Bridge and the very denseoccupation of the banks of the waterways at this spot, any improvement can onlybe implemented at very high cost. Therefore the current bend radius of about 1 50m will have to be accepted and sailing speed restrictions will have to be imposedin order to avoid accidents. Moreover, an alternative route is available for bargeconveys to reach Saigon Por-t from the Delta.

6.40 The remaining 4 priority I and 5 priority IlIl bends all qualify for bendimprovement. The last three bends, shown in Table 6.13, are all located in a verynarrovv stretch within the town of Ca Mau at the extreme end of the "main"waterway from Can Tho to Ca Mau. As improvement of this stretch by wideningand bend corrections is only possible at very high cost, the main waterway canbest be ended at the town limits of Ca Mau.

6.41 The implementation of the bend correction operations should bephased in such a way that all bend corrections are completed within the totalconstruction time of the project. It is recommended to implement the bendcorrections with priority I during the first years of the project construction phase.Also bends, like bend 6 an 10, that only require minor corrections can be correctedas part of the channel widening operations.

6.42 The shipping on the waterway to Ca Mau is less developed than theshipping to Kien Luong, therefore the improvement of the priority IlIl bends in theMang Thit Canal can be implemented at a later stage. The very narrow bend nearCai San Bridge, at the mouth of the Rach Soi - Hau Giang canal requires specialattention. The situation has became more critical since the construction of thenew bridge west of the existing (old) Cai San Bridge

6.43 At several locations the actual radius of the bend is smaller than 300m, but the rather large width of the waterway allows for the fitting of a fairwaywith minimum required dimensions and bend radius, within the boundaries of thewaterway.

By-pass

6.44 The construction of canals in the Mekong Delta has attracted manypeople who have settled on the canal banks and this has resulted in thedevelopment of numerous hamlets, villages and small townships. Along severalstretches of waterway that need to be widened, the number of households to beresettled and the number of houses to be demolished could result in costs forcompensation that exceed the costs of constructing a new canal around thedensely populated area.

6.45 Such a situation applies for the existing waterways which passthrough the town of Rach Gia. For this location a new alignment was determinedand is presented together with its cross sections and typical bend radii in AnnexIl-1. The total quantity of earth moving required is about 1 million m 3 .

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b) Dredging and Disposal

6.46 Hydrographic maps were collected of most of the waterway stretchesthat need improvement because they are suffering from siltation or they have awidth which is insufficient for the proposed navigation. In addition, a so-calledquick survey was performed in a number of stretches at the end of 1 992, whilefurthermore more recent depth information has come available from recentdredging works in certain stretches.

6.47 Some of the data, however, is rather old as the hydrographic datafrom the stretches between Ho Chi Minh City and My Tho, and the Mang Thit -TraOn stretch. Although the siltation in these stretches is rather low, a verificationsurvey was considered useful. Such a verification survey was also performed forthe southern part of the Can Tho to Ca Mau stretch where the changes in depthwere expected to be the largest.

6.48 By comparing the cross sections as obtained from the latest completesurvey with the cross sections obtained from the verification survey, the followinggeneral conclusions can be drawn:

- Although siltation has taken place in most cross-sections that were re-surveyed, the siltation has not been extreme and no unexpected changes haveoccurred in any of the cross-sections. The outcome of the verification surveycan therefore be considered to be representative for the changes that havetaken place in the different stretches and no further detailed hydrographicalsurveys will be required for quantity calculation purposes;

- The survey results of the latest complete hydrographic surveys can be usedto calculate the quantities to be dredged, by applying a correction resultingfrom the changes derived from the verification survey results;

- The siltation calculated in the profiles measured during the verification surveycorrespond rather well with the sedimentation rates derived during theFeasibility Study.

6.49 It will be clear that in those stretches where no verification surveytook place, corrections due to siltation will also have to be made. Based on thesiltation estimated and presented in Annex 11-1, corrections to the quantitiesderived from the latest surveys have been applied to shallow stretches.

6.50 An assessment of dredge quantities should take into accountadditional quantities that will arise from dredging tolerances. This is particularlyimportant when considering the total quantity of material that will be dredged andwill be deposited in an onland containment area. For a small/medium sized cuttersuction dredger working in a waterway with little flow velocity one can assumea vertical and horizontal tolerances of approx. +/- 200 mm and +/- 1000 mmrespectively. The dredging volumes (including pyritic soil) per canal stretch havebeen determined and are presented in Tables 6.14 and 6.15 The total dredgingvolumes in terms of pyritic and non-pyritic material for the two waterway routesare presented in Table 6.16.

74

Table 6.14: Dredging volumes, HCMC to Kien Luong

Volume Volume of VolumeCanal Stretch excl. tols. tolerances incl.tols.

Im3] Em3] Im3]

Ong Lon Creek 3,124 15,070 18,194Cay Kho canal 7,939 5.060 12,999Cho Gao canal 431,798 112,659 544,457Lap Vo - Sa Dec canal 324,492 102,785 427,277Rach Soi Hau Giang canal 1,453,025 391,342 1,844,367Rach Gia Ha Tien canal 3,137,029 447,833 3,584,862Bend corrections 152,088 0 152,088By-pass Rach Gia 846,515 79,560 926,075

Total HCMC - Kien Luong 6,356,010 1,154,310 7,510,320

Table 6.15: Dredging volumes, HCMC to Ca Mau

Volume Volume of VolumeCanal Stretch excl. tols. tolerances incl.tols.

Im31 [m3] [m31

Ong Lon Creek 3,124 15,070 18,194Cay Kho canal 7,939 5,060 12.999Cho Gao canal 431,798 112,659 544,457Cho Lach canal 265,143 38,474 303.617Mang Thit - Tra On canal 175,385 56,457 231.842Xa No canal 1,362,575 256,611 1.619.186Cai Nhat canal 80,578 14,142 94,721Tat Cay Tram canal 212,284 33,041 245.325Trem Canh Den canal 2,089,462 258,999 2,348,461Tat Thu Ganh Hao River 170,104 78,819 248,923Bend corrections 264,417 0 264,417

Total HCMC - Ca Mau 5,062,809 869,332 5,932,1416

Table 6.16 Dredging volumes in terms of pyritic and non-pyritic material

Dredge volume Pyritic Non-Pyritic Total volumelM3j [M3j Im3]

HCMC to Ca Mauexcluding tolerances 1,258,503 3,804,306 5,062,809including tolerances 1,693,169 4,238,972 5,932,141

HCMC to Kien Luongexcluding tolerances 2,228,302 4,127,709 6,356,011including tolerances 2,805,456 4,704,863 7,510,319

Both waterwaysexcluding tolerances 3,454,337 7,439.241 10,893,578including tolerances 4,399,763 8.384,668 12,784,431

6.51 It should be noted that the total dredging of both waterways is lessthan the numeric summation of the two volumes in Table 6.16 as both routesshare a common part of their route i.e from HCMC to Cho Lach.

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6.52 A large part of the brackish water and marine sediments consist ofpotentially acid sulphate soils containing substantial amounts of pyrite (FeS,). Thepyrite containing sediments have been formed under brackish water conditions intidal swamps covered with a mangrove vegetation.

6.53 For dredging purposes the following general conclusions can be drawnregarding the soil:

- throughout the area to be dredged the in-situ material comprises of youngHolocene marine sediments;

- organic material is present in the soils;- the wet bulk density of the clays varies between 1 2 - 1 5 kN/m3;- very soft clay (approx. shear strength of 5 - 1 5 kPa) lies over firm to stiff

clays lapprox. shear strength 35 - 75 kPa)- in most waterways the stiff clay appears to be deep enough to preclude its

dredging for the purposes of creating the required navigational depth,however, in the waterway from Rach Gia to Kien Luong stiff clay is locatedquite close to the surface and will probably have to be dredged.

- before a successful dredging campaign can be executed in the waterways acomprehensive soil investigation should be carried out which would determinethe following geotechnical characteristics of the soil to be dredged.

6.54 Along the stretches that have to be widened, the top layers willcontain remains of trees or other vegetation, while even after cleaning operationsparts of foundations of houses and other debris will be present in the soil. Thepresence of these debris will most certainly lead to delays and break-downs of acutter dredger in these areas and it will be more attractive to use a grab dredgeor dry excavator for removal of the top layer, before employing a cutter dredgerto remove the bulk quantity. For similar reasons grab dredgers may be used inareas where clay-ball formation can be expected during hydraulic transport.Grab/clamshell dredgers can also be deployed for certain locations where dredgingquantities are low and accessibility for cutter suction dredgers is restricted i.e.ciose to bridge fouindations and existing structures.

6.55 It can be concluded that the availability of a series of cutter dredgersof sufficient capacity to dredge about 1 2.7 million m3 of silty clay and in additionthe availability of a number of grab dredgers and barges to dredge about 15% ofthe total quantity, or 2 million m3 of top soil, is a requirement for the executionof the project. In addition to the cutter suction dredger a booster station mightalso be required to aid in pumping the dredged material to the selected disposalsites. Besides this dredging equipment excavators and other dry earth movingequipment is required to build containment bunds and control the reclamationsites.

6.56 The most practical option for material disposal is contained disposalon land. This option is the most realistic option as transportation distances aresmall (can be placed on the adjacent canal bank) and therefore costs will be keptlow. The material will be contained between bunds which means the process ofdewatering the disposal area and the distribution of material over the land can becontrolled which is essential if one is to dispose of this material in anenvironmentally friendly way.

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6.57 A contained clay disposal area comprises a perimeter dyke which canbe previously constructed by draglines from material excavated from the disposalsite. The ditch created by the excavation of material will form the drainage ditchfor the disposal area which is located on the outside of the perimeter dyke.

6.58 The disposal area is normally divided into a number of sub-containment areas by a suitable arrangement of internal bunds. These sub-containment areas are filled in sequence during the dredging operation. This isrequired as once a sub-containment area is filled the surplus dredge water can notbe discharged directly to the waterway as suspended sediments have not hadsufficient time to settle. One day should be sufficient for suspended sediments tosettle and then the surplus dredge water can be drained from the area.

6.59 Drainage structure are placed within the perimeter dyke to facilitatedrainage of surplus dredge water. A drainage ditch located around the peripheryof the perimeter dyke will collect water from the disposal area and lead it to themain discharge channel back to the waterway.

6.60 The thickness of dredged material deposited in a continuous operationis usually limited to about 1.5 m as dewatering of this fine grained clay becomesincreasingly difficult and time consuming as the thickness increases.

6.61 These disposal areas can prove to be very dangerous places for peoplelespecially children) before consolidation has taken place. It is therefore importantthat sufficient measures are taken to prevent the local population from enteringthis area.

6.62 During field visits special attention was given to the availability of thistype of potentially suitable reclamation areas. Most stretches are characterized bythe presence of a road at one side of the canal, while along the roads and canalsthemselves most houses are located. Behind the houses usually the agriculturalfields are located, which can be, (and in fact are already often used duringmaintenance drecdging campaigns), as reclamation area. Therefore most of thestretches will have suitable disposal areas at rather short distances from thedredging locations.

6.63 Only at a rather limited number of dredging locations the presence ofa large village or town, or the presence of extensive coconut plantations observednear Cho Gao Canal will require consideration of alternative disposal techniques.At these locations the use of grab dredgers and barges for transport will be a morefeasible option.

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6.64 Considering a total fill height of 1 .50 m the required disposal areas foreach stretch of waterway is presented in T-able 6.1 7.

Table 6.17: Required onland storage areas

Dredge volume Bulking Volume Required

Waterway tincl.tolerance) factor incl. bulking disposal area

[m3

] [-] [m3

] [ha]

HCMC to Ca Mau

Ong Lon Creek 18,194 1.50 27,291 1.82

Cay Kho canal 12,999 1.50 19,499 1.30

Cho Gao canal 544,457 1.50 816,686 54.45

Cho Lach canal 303,617 1.50 455,426 30.36

Mang Thit - Tra On canal 231,842 1.50 347,763 23.18

Xa No canal 1,619,186 1.50 2,428,779 161.92Cai Nhat creek 94,721 1.50 142,082 9.47Tat Cay Tram canal 245,325 1.50 367,988 24.53Trem Canh Den canal 2,348,462 1.50 3,522,693 234.85Tat Thu Ganh Hao river 248,923 1.50 373,385 24.89Bend corrections 264,417 1.50 396,626 26.44

Sub-total 593.21

HCMC to Kien LuongOng Lon Creek 18,194 1.50 27,291 1.82Cay Kho Canal 12,999 1.50 19,499 1.30Cho Gao Canal 544,457 1.50 816,686 54.45Lap Vo - Sa Dec canal 427,277 1.50 640,916 42.73

Rach Soi Hau Giang canal 1,844,367 1.50 2,766,551 122.96

Rach Gia Ha Tien canal 3.584,862 1.50 5.377,293 358.49

By pass Rach Gia 926,075 1.50 1,389,113 92.61

Bend corrections 152,088 1.50 228,132 15.21

Sub-total 660.66

Total . 12,784,431 19,176,646 1,196.30

6.65 From the above Table it can be seen that a total reclamation area ofnearly 1,200 ha is required for the material to be dredged from the waterwaysbased on a reclamation height of 1.50 m.

c) Bridges

6.66 Bridges and power lines which cross rivers and waterways canpresent considerable obstructions to vessels. They create bottle necks alongtransport routes, can cause severe accidents and ultimately restrict development.In the 1 993 Feasibility Study of the Inland Waterways in the Mekong Delta, typicaldesigns were presented of bridges that needed to be replaced in view of thenavigation requirements set for the main waterway. At that time, thoserequirements were formulated as follows:

- horizontal clearance 30.0 m (= 3.5 times design vessel width)- vertical clearance 6.1 m at the water level exceeded during 1 % of the

time (height of unloaded vessel assessed at 4.0 min.

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6.67 The envisaged dimensions of the improved waterways for the presentproject (see chapter 2) coincide with a Class IlIl canal according to the canalclassification of the Vietnam Inland Waterway Department. A decision(No.347/QD TCVN 5664, 1992) has been issued by the State Committee ofscience on 23rd May 1 992, stating that the vertical clearance for Class IlIl inlandwaterways should be 7.0 m at a high water level that is exceeded during 5% ofthe time. The horizontal clearance should be 30 m.

6.68 Based on navigation criteria specified in 6.67, a number of bridges (10in total) along the waterways from HCMC to Ca Mau and HCMC to Kien Luongwere identified which do not meet these requirements. These bridges are:

- Ong Lon - Vinh Thuan- Phi Thong - Thoi Binh- Kien Luong - Tat Thu- Trinh Huu Nghia - Sa Dec- Doan Ket - Nang Hai

6.69 As the above bridges did not conform to the navigation requirements,TEDI-South was contracted to review these bridges and prepare typical bridgedesigns which could replace the present bridges. These typical designs and costestimates are presented in Annex Il-1 : Appendix Il-1-B.

6.70 During the Project Definition Workshop on 6th February 1 996, theProject Steering Committee reviewed the definition and implications of the basecase and also the alternative option. Based on the conclusions of the aboveworkshop and subsequent discussion between the PMU-SW, the World Bank andNEDECO, it was agreed that the alternative option would form the basis for theproposed project definition, environmental assessment and cost estimates.

The alternative options involve a relaxation of the horizontal criteria for Class IlIlcanals but not of the vertical criteria (this remains the same). The horizontalcriteria as changed from 30 m to 26 m (two-way traffic - high density) and 22 m(two-way traffic - low density).

6.71 As new navigation criteria had been formulated (see para 6.70) andagreed upon it was necessary to review the bridges along the waterways onceagain in order to identify which bridges did not conform to the new criteria. Thebridges in question are presented in Table 6.18

Table 6.18 : Bridges which do not meet nautical requirements

ACTUAL CLEARANCEWATERWAY NAME Vertical Horizontal

[ml [ml]

HCMC - KIEN LUONG Sa Dec 3.30 16.0Kien Luong 5.20 16.0

CAN THO - CA MAU Trinh Huu Nghia 3.20 21.0Doan Ket 3.20 20.0Vinh Thuan 4.20 21.0

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6.72 In February 1996 the Consultants visited the bridges presented inTable 6.18 together with a Bridge Engineer from TEDI-South to assess the currentcondition of the bridges to see whether these bridges could be re-conditioned orwould have to be removed.

6.73 The two bridges of Doan Ket and Trinh Huu Nghia are both situatedon the Xa No canal and are located within 500 m of each other. Both bridgescomply with the horizontal clearance but not with the vertical clearance. The TrinhHuu Nghia bridge is a steel structure and in relatively poor condition while theDoan Ket bridge is a reinforced concrete structure and in reasonable condition. Itis recommended that only one bridge be maintained at this location and thereforethe Trinh Huu Nghia bridge should be removed and the Doan Ket bridge should bemaintained. The existing Doan Ket bridge can not be re-conditioned and thereforeit is recommended to construct a new bridge alongside the existing bridge usingthe spans from the existing bridge. The time required to construct the new bridgeand demolish the existing bridges is estimated to be 3 to 6 months.

6.74 The existing bridge at Vinh Thuan complies with vertical clearance butnot with the horizontal clearance. The bridge can not be re-conditioned andtherefore it is recommended to construct a new bridge alongside the existingbridge using the spans from the existing bridge. The time required to construct thenew bridge and demolish the present bridge is estimated to be 3 to 6 months.

6.75 The existing bridge at Kien Luong is a reinforced concrete multi-spanbridge. The bridge serves as an access road to the Cement Factory. The navigationspan of the bridge complies with vertical clearance but not with the horizontalclearance. It is recommended that the navigation span, including one span to theleft and two spans to the right of the navigation span, be demolished and replacedby one single span. During construction work it is important that the road link tothe cement factory is maintained and therefore a temporary bridge (bailey bridge)should be constructed alongside the existing bridge. The time required to re-condition the bridge is estimated to be 9 to 1 2 months.

6.76 The existing bridge at Sa Dec is a steel structure. It does not complywith both the vertical and horizontal clearance requirements. The existing bridgeis in poor condition and it is therefore not practical or economically justified to re-condition the bridge. It is recommended to demolish the present bridge andconstruct a new bridge alongside the existing bridge. The time required toconstruct the new bridge and demolish the present bridge is estimated to be 5 to8 months.

6.77 During the site visit in February 1 996 the existing bridge at Thoi Binhwas discovered to have insufficient horizontal clearance but sufficient verticalclearance. This bridge is located near the confluence of the Trem Canh Den canaland the Trem river and accidents are known to occur at this location. The bridgeis a reinforced concrete structure and is in reasonable condition. The bridge cannot be re-conditioned and therefore a new bridge will have to be constructedalongside the existing bridge and the existing bridge will have to be demolished.The time required to construct the new bridge and demolish the present bridge isestimated to be 5 to 8 months. It can therefore be concluded that a total of 6bridges have to be constructed new/re-conditioned/demolished and these are listedin Table 6.19.

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Table 6.19: Bridges to be built/re-conditioned

No. Bridge name Action

1 Sa Dec Build new bridge2 Kien Luong Re-condition existing bridge3 Doan Ket Build new bridge using spans of existing bridge4 Vinh Thuan Build new bridge using spans of existing bridge5 Thoi Binh Build new bridge6 Trinh Huu Nghia Demolish bridge

d) Bank Protection

6.78 There are a number of locations along the two waterway routeswhere there are visible signs of bank erosion. For locations where noticeableerosion is taking place there are two types of slope protection which can deadopted which are clay and rip-rap.

6.79 The required clay protection is shown in Figure 6.04. It comprises oftwo layers of clay lumps with a Mso of 20 kg and a Dn,o of 0.225 m. The totallayer thickness is 0.40 m assuming a layer coefficient of 0.9. This type of slopeprotection is required at locations of low to moderate erosion.

6.80 Two different types of protection are considered. One type (section1) comprises a protection which extends from LLWL -0.20 m to HHWL + 0.60 mfor locations which are affected by vessel waves and wind waves. Another type(section 2) comprises a protection which extends from the bottom of the dredgedslope to HHWL + 0.60 m for locations which are affected by flow velocities overthe entire depth.

6.81 The required rip-rap (rock) protection is shown in Figure 6.05. Itcomprises a geotextile laid on the dredged bank slope. The bank slope will haveto be compacted and trimmed before laying the geotextile in order to avoid furthersettlement and assure an even surface. Rip-rap with a Wso of 3.5 kg and a Dn5Oof 0.1 1 m will be placed in two layers on top of the geotextile. The total thicknessof this rip-rap will be 0.20 m assuming a layer coefficient of 0.9. At the toe of theslope protection a surplus of rock will be provided to create a falling toe apronwhich will account for any scour.

6.82 Rip-rap slope protection is required at locations of severe erosion. Atthis point in the study it is not possible to quantify exactly how much bankprotection of this kind is required. It will suffice to assume a total length ofapproximately 10 km (see Annex Il-1: para A8.31 p.50) of the waterway routeswill have to be protected using this solution. An exact determination of how muchslope protection of this kind is required should be determined during the detaileddesign.

It should be appreciated that rock protection on top of a geotextile will be theprincipal form of bank protection to be applied in areas where severe erosion isoccurring. The alternative of using clay lumps for slope protection is intendedwhere less severe erosion occurs and should be considered as a low budgetmaintenance programme.

/

Figure 6.04 Typical Design of clay slope protection

Figure 6.05 Typical Design of rip-rap slope protection

e) River Trainingi Works

6.83 The Viet Nam Inland Waterway Department has identified problemareas where the hydraulic and morpho-dynamic behaviour of the main streams(Bassac and Mekong rivers) form a continuous threat for the navigation conditionsof the main waterways. These locations are:

- Confluence of Cai San and Bassac River;- Confluence of Lap Vo Canal and Bassac River;- Confluence of Tra On and Bassac River;- Confluence of Sa Dec and Mekong River;- The stretch from Cho Lach to the entrance of the Mang Thit River.

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6.84 These locations were visited however it was not possible to executeadditional bathymetric surveys to quantify the extent of the sedimentation in theseareas. As the main waterways have to be dredged and maintained regularly itseems more practical to include these locations in the maintenance dredgingprogramme. Should sedimentation prove to be higher than surrounding areas andhence cause bottlenecks in the waterway system then overdredging in the formof sediment traps can be considered.

6.85 Along the Rach Gia - Ha Tien canal there are a number of placeswhere the main navigational canal is intersected by side canals. Canalsintersecting the Rach Gia - Ha Tien canal from the west are connected to the seaand therefore exhibit a tidal variation. At these locations the effect of strong(cross) currents is presently causing problems to navigation and this situation willdeteriorate when long conveys pass these locations in the new situation.

6.86 In order to minimize the effect of these cross currents a low costdeflection structure can be placed in front of the mouth of these side canals.The deflection structures will deflect the current exiting the side canals and divertthe flow into alignment with the main navigation canal. As the existing navigationcanal is not very wide it will be necessary to widen the navigation canal at thislocation. These flow deflection structures and bank widening is shown in Figure6.06 for one location where these cross-currents occur.

6.87 The deflection structure can be a very simple construction. It cancomprise of rock constructed as a dyke in front of the entrance to the side canal.The size of the rock which is suitable for withstanding these currents and somewave action is specified in 6.88.

6.88 The specifications of the rock dyke are as follows:

- crest height HHWL + 1.00 m- crest width 1.00 m- base of structure LLWL - 3.20 m- structure slope 1:1- Dn5O rock 0.11 m- W5O rock 3.50 kg- length of structure 60.00 m

6.89 There are six locations along the Rach Gia - Ha Tien canal whichexperience these problems with cross-current which means a total of six deflectionstructures are required at:

Confluence of Tam Ngan canal with Rach Gia - Ha Tien canal (Km 296 + 800)Confluence of a canal with Rach Gia Ha Tien canal (Km 295 + 600)Confluence of Tri Ton canal with Rach Gia - Ha Tien canal (Km 281 +400)Confluence of a canal with Rach Gia - Ha Tien canal (Km 281 + 150)Confluence of Ba The canal with Rach Gia - Ha Tien canal (Km 268+500)Confluence of a canal with Rach Gia - Ha Tien canal

The total quantity of rock required to construct one deflection structure is 1,485m3 and for six this becomes 8,910 m3 . Suitable rock for the deflection structurescan be obtained at local quarries which are within 100 km of the proposed sites.

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3Sd cna

/~ ~ ~~ ~ ~~~~~~~~ I '

0 ./

22I -, NAVIOAT1ON CANAL 2n

fI Z2m Ais20m 30m ,

to~~~~~~~~ ~ be ddego

-320mn IDb 1d

i-igure 6.06 : Rock Deflection Structures

f) Navigation Aids

General

6.90 The main arteries of the network in the Mekong Delta consist of fourmajor watercourses (bifurcations of the Mekong River) which run more or lessparallel to each other in a south-easterly direction and debouch into the SouthChina Sea. A nurnher of small natural and artificial watercourses link the mainwatercourses, but the man-made canals which criss-cross the delta, form the realnetwork. The whole area is influenced by the tides in both the South China Seaas well as from the Gulf of Thailand. The influence of the former dominates largelyover the latter, however, the determination of current velocities and currentdirection is somewhat difficult to predict.

6.91 The lateral canals running from Ho Chi Minh City in a south-westerlydirection are the most important canals for transport. Two main routes wereselected for improvement to serve the future demand. To efficiently sail theseroutes which consist of numerous inter-linked small/wide rivers and canals anadequate signalization system is needed. A waterway classification exists. Theselected routes shall comply with class 3 waterway which to a certain extent iscomparable with the class IlIl waterways of Europe. A great variety of vesselsranging from small wooden boats to steel barges sail the waters in the MekongDelta. Most country craft is mechanized with a 'long-pole' propulsion system. Aidsto navigation in the Delta will become increasingly more important for the bargeconvoys.

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6.92 The South Vietnam Waterway Sub-Department is the Authorityresponsible for the administration of the waterway network. A total of five mainwaterway stations are strategically located in the delta, each having one or moresub-stations along the waterways they control.

6.93 Constraints to day. navigation are principally found in bends of thesmaller rivers, in wide rivers where various channels may exist, in canals whereshoals are formed by sedimentation, at confluences and bifurcations where thecorrect routes must be marked, at locations where a canal crosses a wide riverand occasionally at canal T-crossings with a strong tidal flow, at bridges wherepiers restrict the free width.

6.94 A new system concept for the South Viet Nam Inland Waterways isrequired which comprises an integration of both the international IALA system andthe SIGNI system. The most significant changes to be adopted concern the coloursand the shapes of buoys and signs.

Implementation

6.95 The implementation of an integrated Aids-to-Navigation systemfollowing the new concept, can only be realised in steps. The basis for the systemis a fairway marking masterplan which comprises all navigable waterways. Thisplan must be elaborated in detail and will include the following stages:

Main System

6.96 The main system is the fairway marking of the main arteries, inparticular those which are used for (international) traffic of seagoing vessels. Theroutes are principally indicated by light buoys and lighted shore beacons whichmay be spaced as far as 5 to 6 km apart, depending on the sinuosity and widthof the navigable channel. Where possible, mid-water buoys with their sphericallyshaped daymark wiiU be used supported by occasional lateral buoys to indicate anarrowing of the wide fairway. The buoys used in this system must be large sizedfor long-range sighting and they will be invariably equipped with a highperformance type radar reflectors. All of these main route buoys must be lightedin accordance with IALA recommendations for buoyage in confined waters.

6.97 With this system, seagoing vessels will be able to navigate theseroutes with reasonable safety. However the spacing of the buoys is such that onstretches with instable channels, assistance of an experienced Pilot with goodknowledge of the latest changes of the fairway between the buoys, is stillrequired.

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Extended System

6.98 Herewith a number of lateral light buoys are added to indicate moreaccurately the limits of the fairway for the deep draught vessels, which mayreduce the buoy spacing to 2 to 3 km. Furthermore, a number of secondary, andprobably more sheltered channels, for smaller vessels will be marked withbifurcation buoys and only the most essential buoys (and shore beacons) lighted.With this system, the Organization in charge of the fairway marking must alreadybe efficiently operating in order to keep up with the necessary relocation of buoysto follow the changes in the navigable channel. Now, next to seagoing vessels,smaller vessels will be able to safely navigate day and night those stretches of themain route that are convenient to them, or take the secondary channels indaylight, for a shortcut or to obtain more shelter and better guidance from theshore.

Definitive System

6.99 The final marking plan is focused on a marking system that permitsinland waterway craft to sail day and night on the lateral fairways, while partlyusing or crossing the main routes as described above.

6.100 The implementation of the navaid system should not necessarily becarried out in the stages described earlier however, the masterplan must be madein this sequence in order to arrive at an efficient integration of both the IALAbased marking of the main arteries and the SIGNI based marking of the inlandwaterways.

6.101 The number of navigation aids required is summarized in Table 6.20.

Table 6.20: Number of navigation aids and the costs

Stretch Light- Light- Beacon Beacon Bifurc Canal Bridgebuoy buoy high low Beacon bank Lightlarge small light set

HCMC-Cho Lach 5 60 2 50 10 21 4Cho Lach-Ca Mau 7 99 5 100 15 99 9Cho Lach-Kien Luong 5 55 5 60 10 135 7Can Tho-Cai San 4 18 2 32 2 0 0

No.of 21 232 14 242 37 255 20

COST (million US$1 0.818 3.219 0.584 1.509 0.586 1,313 0.293

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D. Resettlement Requirements

a) Impact of waterway enlarcement

6.102 The widening of the waterway wili cause loss of part of thehomestead for 2100 families. The total number of houses wholly or partiallyaffected amounts to 2850; 1 570 of these house owners can retract and rebuildon the same homestead.

6.103 The families living on the edge of the waterway bank or over thewater will be most severely affected. In general, these families live in clusters inor near the towns, own little or no homestead land and can therefore not retract.No losses have been registered of agricultural land, graves, wells and trees. Thisis consistent with findings of the census of 1 994.

6.104 In general, rural roads are several metres away from the waterwayand will not be affected. Also no interference is expected with electricity lines.(Provision of electricity to new settlement areas is included in resettlement sitepreparation cost.)

6.105 Impact of waterway enlargement is particularly felt where thewaterway traverses population centres. A few specific situations merit adescription:

Long Xuyen district

6.106 The hamlet of Thoi Thanh is situated at the Rach Soi-Hau Giang Canalnear the connection with Bassac river. The canal has the width required but thelocation of two bridges coupled with a sharp bench in the canal obstruct easypassage of ships. In the waterway study design an alignment is proposed whichsmoothens the bend in the canal. While the exact parameter of the alignmentremains to be finalized, the RAP includes the maximum number of households(100) that could be.affected.

Vi Thanh Town

6.107 The Xa No Canal needs enlargement of 9 - 10 metres where ittraverses the town of Vi Thanh. The number of PAF is 170 of which 135 will haveto relocate. Possibilities to limit the number of PAF by reinforcing embankmentwith sheet piling have been investigated. However, the cost(4 million US$ for 2 km) was considered too high. Savings in resettlement costwould have amounted to 0.9 million US$. It is therefore proposed to implementresettlement in Vi Thanh town as planned and to develop a pilot village in thevicinity.

Hoa Luu Village

6.108 Widening of the Xa No Canal in Hoa Luu is estimated at 4 metres.Some 70 traders live in concrete houses near the edge of the Canal. Districtauthorities have requested that dredging and enlargement specifications be slightlyadjusted so as to prevent displacement of this group of PAF.

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b) Land Requirements

6.109 The Lap Vo-Sa Dec, Rach Soi-Hau Giang and Rach Gia-Kien LuongWaterway requires widening over a maximum of 1 00 km of its total length of 1 28km. Average widening is 4 m. The Xa-no - Ca Mau Canal will need enlargementover maximal 65 km of its total length of 124 km. Average widening on thiswaterway is 7.5 m.

6.110 Land requirements for relocation of 1280 families can be calculatedat 128,000 m2 or 13 hectares.

6.1 11 No loss of agricultural land has been recorded. However final dredgingand enlargement specifications may include smoothening of the bends in the TatCay Tram and in the Trem Canh Den Canal. It is tentatively estimated that some50 ha may be affected. A provision is included in the resettlement budget.

6.11 2 Finally a first estimate for land required for spoil soil deposit amountsto 1000 ha. Spoil soil deposit and compensation of farmers are described in thedredging study.

c) Valuation

6.113 PAF in the Inland Waterways Project will be compensated for lostassets on the basis of replacement cost (land, structures) or market rates (crops)depending on the type of loss.

6.114 The Provincial People Committees will determine actual compensationrates per province in accordance with the principles of Decree CP 90 and withinthe price frame stipulated in Resolution 87 CP. These price frames are wide inrange and in general enable determination of Provincial rates at current marketlevel. Actual rates per province for land and structures may vary with the cost ofbuilding materials eg. wood, cement and stone and with the availability and priceof land.

6.11 5 Officials charged with calculating the compensation rates haveattempted to find a solution by dividing compensation in a fixed component, basedon 87 CP, and a flexible component which takes into account specificcircumstances and/or agreements between parties.

6.116 In general, and more particularly in rural areas, compensation ratesexceed replacement cost and the PAF will accept compensation rates as specifiedby the PPC; even more so if the necessity and the national interest of the Projectis carefully explained.

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d) Relocation

6.11 7 The minimum livable homestead size for PAF has been definedarbitrarily by the project. The number of PAF in need of relocation has beencalculated on the basis of this definition. The actual number of PAF to be resettledby the Project on resettlement sites prepared by the Provinces will be considerablylower for a number of reasons:

- Over 50 per cent of the PAF are farmers who are expected to retract from thecanal to make a new homestead by using part of their agricultural land.

- Remaining homestead areas each smaller than 60 m2 , may be combined.

6.11 8 Discussions with Provincial and district Authorities which took placein November 1 995 confirmed that alternatives for relocation to new resettlementarea's do exist and need to be further studied on provincial, district and villagelevel.

6.119 In the census virtually all respondents stated that they preferred toreceive cash compensation and to be allowed to relocate by their own means. Theproject will not accommodate all PAF in this respect as many would move into ahousing situation of the same or lower conditions.

6.120 For the moment it seems justified to assume that less than 50 percent of the PAF indicated for relocation (1280) are in need of a resettlement siteprovided by the provinces.

6.121 Actual relocation will be organized in a carefully structured sequenceso as to limit hardships for the moving families. The resettlement task force willinvestigate and confirm the number of PAF in need of a plot in a new resettlementarea. The most appropriate site from the areas already identified and proposed bythe Provincial Authorities will be selected. Physical infrastructural works will beundertaken and where necessary schools and health stations will be constructedand individual homesteads prepared. When the housing plots are allocated toindividual families care will be taken that groups of neighbours are given adjacentplots.

6.122 The Village or District Cadastre will issue land use rights for each plotas soon as possible after the plots have been allocated.

6.123 Building materials will be delivered on the plots and, where necessary,advice and support in construction in provided. The completed houses will beinspected by the resettlement task force and the families will be assisted in themove to the new house. The inspection by the resettlement task force will focuson completion of pit latrines, quality of construction, availability of electricity, etc.Whether or not the PAF may salvage materials from their previous home will bedecided by the resettlement tasks force on a hamlet by hamlet basis.

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e) Resettlement sites

6.1 24 Upon request of the PMU, provinces have identified suitableresettlement sites near the locations where groups of PAF to be displaced areliving. A total of 1 8 sites have been described and submitted to the PMU. Totalacreage of these sites amounts to 300 ha, thus largely exceeding requirements.

6.1 25 Kien Giang province has not yet officially indicated resettlement sites,but will respond to the request of the PMU in the very near future. Districtauthorities of Than Hiep and Hon Dat have, during field visits of PMU staff andconsultants, already indicated and shown suitable sites near Tan Hiep and HonDat. An overview of locations and short descriptions of the sites are provided inVolume IlIl: Resettlement Action Plan.

f) Emplovment, income, training and credit

6.126 Many PAF will suffer partial loss of property which will be addressedby monetary compensation. The majority of the PAF which will have to relocatewill maintain their main source of income. This is particularly the case for farmersand labourers. Traders and marketeers may have to adjust by either travelling agreater distance to their business or by switching to new markets.

6.127 The PMU Resettlement Board will seek to identify additionalemployment opportunities as it is agreed that compensation for losses and/or theopportunity to build a new house in a new settlement area in itself does notsuffice to create improved living conditions.

6.1 28 Resettlement in each village should be viewed as an integrateddevelopment project. The Project Resettlement Board and the ProvincialAuthorities will seek to maximize additional benefits for all PAF.

Employment

6.1 29 The Resettlement Board will review all employment opportunitiesemanating from the Inland Waterway Project and RAP implementation and ensurethat PAF are hired wherever possible. Possible employment includes:

- dredging;- resettlement site preparation;- transport of building materials;- house construction.

Training

6.130 Junior members of relocating families will be given the possibility to

take vocational training courses. Opportunities for training exist in 22 VocationalTraining Centres in the Mekong Delta. Courses include: industrial and domesticsewing, carpentry, English language skills, informatics, mechanics, electricity,sheet metal work, micro business, welding and aquaculture.

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Credit

6.1 31 The PMU Resettlement Board will initiate discussions with banks andSpecial Credit Funds to make available credit facilities to individuals and groupsof small entrepreneurs. Particularly groups of women in new settlement areas willbe encouraged to start small business groups. The Resettlement Programme itselfwill not provide credit but it will seek to identify opportunities provided by the EUsupported Refugees Repatriation Programme, the IBRD supported Rural CreditProgramme in the Vietnam Bank of Agriculture and similar ongoing developmentprogrammes.

g) Project Organization

6.132 The Project Management Unit of the Inland Waterways Project shallbe the responsible agency for coordinating all resettlement activities and formonitoring its progress. The PMU shall establish a Project Resettlement Boardwhich is to be chaired by the Dty. Director of the PMU/SW. Members are directorsof Provincial Resettlement Boards of the five provinces involved or their deputies.The Project Resettlement Board shall have a full time administrator with adequatemeans and support.

6.133 Provincial Resettlement Boards will be set up by the PeoplesCommittees in the respective provinces (in fact Resettlement Boards have alreadybeen established in several provinces). They are chaired by the Vice Chairman ofthe Peoples Committee. Their staff includes the Vice Directors from the Landadministration Office and from the Departments of Transportation , Constructionand Education and Health (Molisa). Each of these members has specificresponsibility for subject specific task forces.

6.134 The Provincial Resettlement Board will establish the following taskforces for actual implementation of the resettlement programme at district level:

- Property Evaluation Group;- Compensation Group;- Resettlement Group;- Monitoring Group.

6.1 35 The property valuation task force will be established and headed bythe Vice Director of the Provincial Transport Department. Members of the taskforce include officials from provincial, district and village transportationdepartments. At secondary (district) and tertiary (village) level officials of therelevant administrative entity are included. The task force will visit each PAF andregister/quantify losses caused by the project.

6.136 The compensation task force is headed by the Vice Chairman of thePeoples Committee and includes members of the Peoples Committees atsecondary and tertiary level and representatives of (groups of) PAF. The task forcedefines the compensation modality eg. land for land, cash for land and appliescompensation rates as stipulated by the Provincial Peoples Committee.

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6.137 The resettlement task force is headed by the Vice Director of theProvincial Land Administration Office (cadastre) and is staffed with LandAdministration officials of secondary and tertiary level within the respective areasof their jurisdiction. The task force will make the final selection of resettlementareas, acquire land areas from the central government or expropriate it from titleholders and will instruct provincial and/or district construction departments toconstruct the necessary infrastructure. The task force will identify and allocateagricultural land to affected farmers. Finally the task force will organize andregister allocation of plots to individual families in the resettlement area andtransfer land use titles to the newly settled families.

6.1 38 The monitoring task force is the responsibility of the Vice Director ofthe Provincial Department of social affairs and health (Molisa). The task force isstaffed with secondary and tertiary officials from the same department in theirrespective areas of jurisdiction. The task force will identify employmentopportunities propose special provisions for vulnerable groups of PAF and is incharge of registration, organization and distribution of subsistence allowances(food supportl and of the training programme.

h) Conclusions and Recommendations

6.1 39 In response to suggestions made by the Project Steering Committeeduring the project definition workshop the canal design parameters have beenmodified. As a result the number of PAF decreased to 4959 of which 1 280 willhave to be relocated. Total cost of RAP implementation is estimated at 10.5million US$.

6.140 Land requirements to compensate for loss of agricultural land havebeen arbitrary defined at a maximum of 50 ha and residential areas required toresettle PAF are estimated at 1 3 ha.

6.141 Modifications in the project design should be considered near LongXuyen District and .Hoa Luu Village in order to further reduce the number ofdisplaced families.

6.142 The PMU/SW has limited experience in resettlement. In view of thesize and scope of the Resettlement Programme technical assistance for a periodof at least 6 months to PMU/SW for resettlement is urgently required. The WorldBank estimates that loan negotiations can take place in February 1 997 anddredging may start in September 1 997. Hence the technical assistance should bein place as early as possible and preferably not later than May 1 996.

6.143 Following the suggestion of the World Bank that a simple pilot projectwould be desirable for training and testing of the resettlement implementationprocedures the Consultant has tentatively selected a resettlement area near theTown of Vi Thanh for this purpose.

6.144 Four of the five provinces in which resettlement is to take place havealready submitted areas for relocation of PAF. The Province of Kien Giang hasindicated its intention to identify and propose suitable areas in the near future. Theareas as submitted by the provinces appear to be suitable and largely exceed RAPrequirements.

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6.145 The RAP envisages resettlement in five provinces. Intensivediscussions with and extensive training of provincial and district officials arerequired to harmonize compensation packages to the extent possible and achieveconsistency in RAP implementation.

6.146 Most PAF will sustain limited losses of residential land. In such casescash for land may be the most suitable compensation modality.

E. Environmental Measures

6.147 It should be realized, that the current ecological value of the areas ofthe waterways under consideration in the Mekong Delta is rather low, while mostof the living creatures of the Delta are well adapted to changes in respect ofsalinity, acidity, turbidity etc. Therefore no important impacts are expected fromsmall changes in salinity, current velocities, increase in turbidity etc.

6.148 The release of acid and metal ions as a result of the oxidation ofpyritic soils, however, could have an important impact. The selected routing cutsthrough an area north of Ca Mau, that has a higher acidity than the areas NE andE of Ca Mau, where alternative alignments have been considered. The differencesin acidity along the different alignments however is small.

6.149 More important is the required widening of the canals in order to copewith the transport requirements in the near future. By minimizing the canal bankslopes and bottom width to 22 m in the main waterway to Ca Mau, and to 26 min the stretch to Ha Tien not only the quantity of earth moving and number ofhouseholds, that had to resettle, but also the quantity of potentially acid soil canbe minimized.

6.150 The approach followed in the Environmental Management Plan (seeVolume IV), is aiming at minimizing environmental impacts during projectimplementation to acceptable limits, stimulating a quick recovery of theenvironment after completion of the construction works and stimulation of habitatimprovement when feasible from a budget point of view.

6.151 In the next paragraphs a description will be presented of theenvironmental features of the different canals to be improved and the meanapproach to be followed for minimizing damage to the environment.

a) The Cho Gao canal

6.152 This stretch is mainly influenced by the tides even during the wetseason. When the EC was measured during the field trip in October it showed avalue of 4230 uS/m. This indicates brackish water even in the wet season. Duringthe dry season the salinity will increase. Because of the presence of a tidal mudflats on both sides of the canal a natural vegetation and other biota could establishand maintain themselves. This stretch also shows the highest number of fishspecies.

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6.1 53 The soil samples of 1995 did not show pyrite sediments. Therelatively small amount of dredged material can be disposed in places where it canbe useful for building or agricultural purposes. The dredging material will be siltyand therefore it will take some time before it is suitable for agriculture.Experiences elsewhere under similar circumstances indicate that within two yearsthe salinization of the top layer is almost reduced to zero. Attention has to begiven to the drainage. This water will also be saline for some time.

6.154 Along the Cho Gao canal some smaller more natural habitats on andbehind the banks can be found. These places must be avoided to be used as spoildeposits. The vulnerable natural vegetation along the canal which also plays animportant role in bank protection must be respected and maintained.This means careful dredging operations.

6.1 55 No severe negative impacts are expected on the aquatic biota as mostof the shallow mud flats and the bank will remain intact. The different species ofthe aquatic flora and fauna are well adapted to changes in their environment likedisplacement of sediments etc. because it is always subject to tidal influences. Itis unnecessary to monitor this stretch in relation to short and long term effectsfrom dredging, nevertheless, because of the high number of species of aquatic lifefound in 1 995 it may be useful to monitor this stretch.

b) The Mang Thit canal

6.1 56 According to data on the water quality in the Mang Thit river there isno salinity (not even in the dry season), however, there may be some unknownsalt intrusion in the deeper layers of this water body. Only the bottom of the canalwill be dredged over a short distance. There is no pyrite containing soil. Thedredged spoil can be deposited at any location, where it can be used by man forbuilding or agricultural purposes. The banks of the Mang Thit canal at the dredgingsites are somewhat elevated above their surrounding and have planted trees,houses, sugar cane and sugar factories. It is recommended to put the dredgedmaterial at some distance from the canal bank.

6.1 57 Because of the relatively small quantities to be dredged, there will beno severe impacts on the aquatic environment. So no significant negative impactsare to be expected on fish and other biota. No monitoring is proposed in relationto the dredging, or long term impacts.

c) The Xa No canal

6.158 The Xa No canal will be dredged over a distance of 39 km. Dredgingof the bottom and 5 to 20 m of the right bank is envisage. The banks of the XaNo canal show a relatively high density of houses. The raised beds around and inbetween the houses are planted with coconut, mango, banana, other fruit trees,bamboo, sugar cane etc. Also in some places nypa palms can be found. There areno natural habitats left on the banks or at some distance behind the banks. Inmost places there are rice fields at distances of 1 to 2 km behind the canal bank.A double or triple crop of rice is yielded every year.

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6.159 The dredged material in the middle and west part of the canal willcontain pyrite, so there will be acid problems related to the dredged spoil. Theacidity in the southern part (location 5) is very high. The top soil in this part is notacid and the back ground acidity is zero. Due to the expected adverse impactscovering of the dredge deposit with non-pyritic material and using high bunds arerecommended.

6.1 60 Along the Xa No canal it is not recommended to promote resettlementalong the dredged bank of the canal. So the best solution would be to createraised resettlement sites at some distance from the canal and connect these sitesto the Xa No canal by side canals and lateral branches. Such infrastructure shouldpromote the development of villages at some distance from the canal. In this way,a better infrastructure and better circumstances to protect the environment canbe achieved. Also there will be good opportunities to implement habitatimprovement measures by creating shallow ponds. They will give many benefitsfor the environment and also for the people living along the Xa No canal.

6.161 To separate the pyrite containing fractions from the other soil layersdredging will have to take place in layers. The use of grab dredgers or excavatorsis recommended and may be the cheapest method for widening the channel andpreparing the resettlement sites.

6.162 Along the dredged stretches it is recommended to create shallowwater areas. Together with the vacated banks they can be planted or seeded.

6.163 Following the above proposed or mentioned solutions it isrecommended to carry out monitoring programmes on fish, vegetation and macro-fauna. If resettlement on the newly created bank is allowed monitoring of thevegetation can be omitted.

d) The Rach Soi - Hau Giang canal

6.164 Up to about 8 km before Rach Gia the Rach Soi - Hau Giang canal canbe considered as a fresh water canal were salinity does not exceed 4 g NaCI perlitre during the dry season. The bottom of the canal and the right bank have to bedredged. The right bank is not so densely populated as the left bank. At mostplaces there are many, mostly planted, trees and shrubs. Outside the village, about30 % of the banks are covered with houses. Apart from some natural developedtrees and shrubs there is almost no natural habitat present on and along the banksof he canal. There are only a few poorly developed Nypa palms near Rach Soi.

6.165 In general, the situation is much like the situation along the Xa Nocanal. The same alternatives can therefore be considered for the resettlement ofthe people. The option of creating new villages away from the canal would be thebest solution for the people and the environment, as a better infrastructure andbetter measures to protect the environment can be realized.

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6.166 Further there will be good opportunities to implement the habitatimprovement proposals as described in Volume II, Chapter 6. They will give manybenefits for the environment and also for the people living along the Rach Soi -Hau Giang canal. Financially implementation will only be feasible if additional soilis needed for building of bunds or resettlement sites and when no extraresettlement will result from the creation of shallow breading grounds.

6.167 According to the soil survey of November 1995 there is no or onlyiittle pyrite containing soil along this stretch. This will make it possible todischarge the dredged material on the fields without restrictions to preventnegative impacts due to acidity. Only at and around location 1 3 attention has tobe given to acidity.

6.1 68 It is advised to carry out monitoring programmes on fish, vegetationand macro-fauna of the bottom. This will have to be done at location 14. Ifresettlement of the newly created bank is allowed monitoring of the vegetationcan be omitted.

e) The Rach Gia - Ha Tien canal

6.169. This canal contains brackish to salt water even in the wet season.Due to the ongoing cultivation projects in the areas north east of the canal severeacidification of the canal is already occurring. A pH of 3.8 was measured duringthe survey of February 1996. This was after a severe rain shower which may havecaused a temporary extra acidification. Also, the macro-fauna survey of November1995 did not show any organism. Although this may also be caused by the thicklayer of dead leaves on the sampling locations. The number of fish species in thecanal is low compared to the other water bodies that have been surveyed.However, in February fish was still present.

6.170 The number of houses is less compared to most of the other canals.Especially the number of houses in the northern (right) bank is low. East of thejunction with the Ba The canal only 5 % of the bank is occupied by houses. Onthe other bank where the road is situated, about 30 % of the bank is occupied byhouses.

6.171 The vegetation on the right bank is rather dense. Also some morenatural vegetation like natural developed trees, shrubs en herbs can be found. Onlynear Rach Gia there are some poorly developed nipa palms. The absence of thispalm may be related to the low pH-levels.

6.172 The hinterland of the right bank is very acid. In some small ponds atsome distance of the canal pH- values of around 4 were measured. Yet, there arepaddy fields. They yield two crops per year. The crop in the spring season yields3 to 5 tons per hectare, but the crop in August/September not more than about1 ton per hectare due to the acidification.

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6.173 The material to be dredged west of Rach Gia contains pyrite. So acidproblems can be expected. The background acidification, however, is also high asa result of the presence of moderately and severe acid sulphate soils all along thecanals and especially high where recently areas are turned into raised beds for thecultivation of Eucalyptus by the Kien-Tai company (joint venture between the KienGiang Province and a Taiwanese company). As a result already a very high acidityis present and large quantities of acid will be flushed to the sea, where the fishand shrimp populations will be reduced.

6.174 As coverage will hardly be possible due to the absence of cleanbottom layers in the deeper part of the excavation at most locations and thelimited increase of the already high acid load of the canals, use of high bundswithout coverage is recommended along the entire canal. The excavation of thenon/less acid top-layer may be dredged by grab dredger or excavator and used forthe construction of bunds and new resettlement sites.

6.175 Along the Rach Gia Ha Tien canal it is not recommended to havesettlements again along the dredged bank of the canal. So the best solution wouldbe to create raised beds at some distance of the canal and connect them with aside canals with lateral branches with the canal.

6.176 It is recommended to carry out monitoring programmes on waterquality, fish, vegetation and macro fauna. If resettlement of the new created bankis allowed monitoring of the vegetation can be omitted.

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F. Economic Evaluation and Sensitivity Analysis

a) General

6.177 In the original Feasibility Study of May 1993, the benefits ofwaterway improvements have been estimated on the basis of transport costreductions that are achieved by improving the navigability of the main canalsystem. Since the capital dredging and resettlement costs estimated in the presentstudy are rather different from the costs estimated in the 1 993 Study, and sincemany changes in the Vietnamese economy have taken place already, theConsultant has updated the economic analysis.

b) Costs

6.178 A breakdown of the capital costs and the yearly maintenance costsof the project are presented in Table 6.21 for the two waterways from Ho ChiMinh City to Ca Mau and to Kien Luong.

Table 6.21 : Cost breakdown of project

Ite Project Components Capital Costs Capital Costs Total Costsm 1 Local comp. Foreign comp.

1-] [US$] [US$] [US$/yrl

1 Resettlement 9,996,321 0 9,996,3212 Dredging 7,313,085 17,063,864 24,376,9493 Bridges 2,594,364 0 2,594,3644 Slope protection 2,480,000 0 2,480,0005 River training works 180,000 337,500 517,5006 Can Tho Port 850,500 1,749,500 2,600,0007 Navigation aids 3.079,125 5,242,320 8,321,4458 Auxiliary Equipment 0 1,250.000 1,250,0009 Landing stage Ca Mau 890,000 710,000 1,600,00010 Environmentai Management 50,000 0 50,00011 Strengthening IWD 600,000 1,200,000 1,800,000

12 10% Supervision/Guidance (1 - 11l 2,223,463 2,223,463 4,446,926

13 5% Contingencies 11 - 121 1,500,838 1,500,837 3,001,675

TOTAL COST (US$) 31,757,696 31,277,484 63,035,180

A breakdown of the costs in Table 6.21 can be found at the following references:

Item 1 Volume IIIItem 2 Annex li-1 Appendix 11-1-AItem 3 Annex 11-1 Chp.10, Table 10.02, p.57Item 4 Annex 11-1: Chp.10, Table 10.03, p.58Item 5 Annex 11-1 Chp.10, Table 10.05, p.58Item 6 Final Report Can ThoItem 7 Annex 11-2 Chp.5, Table 5.04, p.3 4Item 8 Volume Il Chp.8, Table 8.02, p.108Item 9 Annex 11-2 Chp.10 sub-section F p.59Item 10 Volume IVItem 11 Volume Il Chp.8, Table 8.01, p.1 0 7

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c) Economic analysis

6.179 The economic analysis compares the total transport costs with andwithout the project for the period 1 997-2024 and presents the B/C ratio and NPWat an opportunity cost of capital of 10%, and the EIRR calculated over the with-without project cash flow.

6.180 In the without project case, the costs consist of shipping costs,operation and maintenance of the exiting navigational aids and bridges, and ofmaintenance dredging to keep the canals at their present width and depth. Theshipping costs are expected to rise in terms of US$/t.km by 10% from 2000 to2015, because of increased congestion on the waterways. Because of the samecongestion, it is also expected that during the same period 10% of the cargo willswitch from waterway to the more expensive but faster road transport. The costfor road transport has, in accordance with a recent study, been calculated at a unitrate of 0.0525 US$/t.km.

6.181 In the with-project case, the costs include also the proposedinvestments in capital dredging, new bridges, additional navigational aids,resettlement and strengthening of the Inland Waterway Department. Shippingcosts and maintenance dredging are lower than in the without-project case, andall the projected waterway cargo remains on the water.

6.1 82 The resulting transport cost flows are presented as base case in Table7.05. The EIRR is 23.9%, the B/C ratio is 2.7, and the NPW is 70 US$ million,showing that the project would be economically feasible.

d) Sensitivity analysis

6.183 A sensitivity analysis has been carried out in two ways. For theproposed project, comprising the upgrading of the inland waterway transportroutes from HCMC to Kien Luong and to Ca Mau via Can Tho, the sensitivity ofthe economic indicators has been tested in six additional scenarios by: (i)increasing the capital costs with 10%, (ii) using the low cargo projection, (iii) notusing physical contingencies, (iv) assuming that 20% of the cargo will switch tothe road by 201 5, and (v) by combinations of these factors. So called switchingvalues have been established by choosing a scenario that would result in an EIRRequal to the opportunity cost of capital.

6.184 Another sensitivity analysis carried out limited the project to theHCMC-Kien Luong and HCMC-Can Tho stretches which will eliminate theresettlement intensive Can Tho-Ca Mau stretch. For this alternative project set-upsimilar scenarios have been calculated as for the full project.

6.185 The results of this sensitivity analysis are presented in Annex 1 andare summarised in Table 6.22. This analysis shows that the project couldwithstand the investigated adverse changes without loosing its feasibility. Thereduced project is only marginally more attractive than the full project. Theswitching values are only achieved by using extremely adverse assumptions.

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e) Economic evaluation night navigation

6.1 86 A separate evaluation of the night navigation has been made on thebasis of the following cost and benefit-estimates.

- the costs of aids for night navigation have been estimated in Annex 11.2 to thisMain Report as follows:

US$navaids for day & night navigation: 8,321,445navaids for day navigation only: 4,540,300cost increment for navaids for night navigation: 3,781,145

Maintenance cost navaids night navigation: 190,000/yr

- the benefits of night navigation have been estimated under the followingassumptions:

(i Some 50% of the barge fleet will ply on the main waterways during thenight hours. This corresponds with 23,5% of the (actual) capacity of thefleet involved in the long haul transport.

(ii) The annual fixed costs including crew costs and overhead of the designbarge convoy (250 HP tug and three 250 DWT barges) has been assessedat US$ 74,000 and US$ 82,000 when used during day only and day andnight respectively (ref. 1993 Feasibility Study).

(iii) Round trips on an (average) 200km trip has been calculated at 21 and 28for day navigation and day and night navigation respectively. Zero returncargo has been assumed.

Based on above assumptions it is derived that the fixed cost component in thetransportation costs amounts to US$ 4,7 and US$ 3,9 per ton for day and day andnight navigation respectively. At a total cargo volume (low scenario) of 5,5 milliontons per year (= 0,6 x 9,229,000) in the year 2000, the volume transportated byday/night fleet is estimated at 1,3 million tons per year. This gives a benefit of(4,7 - 3,9) * 1,3 million, or US$ 1,04 million per year.

This benefit amounts to 13 % of the overall project benefits, while the capital costof the night navaids amount to only 7% of the total project cost. The yearly O&Mcosts for the night navaids have been estimated at 6% of the yearly O&M costsfor the full project.

6.1 87 In chapter 2 of this Report it has been indicated that in the withoutproject case an additional fleet capacity of 80,000 DWT (or some 40% of theexisting fleet capacity) would be required to meet the projected transport demand.The introduction of the night navigation would compensate for about 10-15% ofthis additional capacity requirement. Introduction of night navigation is thereforenot expected to generate an over capacity of fleet.

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6.1 88 Auxiliary equipment for waterway operation and maintenance havebeen estimated to require a capital investment of US$ 1,250,000. For theeconomic analysis of the night navaids component it is assumed that 20% of thiscost could be saved if no night navaids would be installed.

6.1 89 Appendix II table 16 shows the result of the economic evaluation ofthe night navaids component of the project, giving the following results:

EIRR 21B/C Ratio (10%) 1,86NPV (10%, USD mIn) 4,55

Table 6.22 Summary of Sensitivity Analysis

Assumptions Costs Indicators

0 _

.. E ¢ (, E _ , Ed. ° cu 0 c 0 )oX O,~~~~~~~~0 C I. C Cn~ _ a CD ~ ~

c 0)' 'C I° m > a I Er

'Remark M _ _ _> _________ c_ m Z1A Full project (base case) High 10%' 0% 10% 41.0 10.0 56.1 18%' 1.75 471B Full project High 10% 10%i 10% 45.1 11.0. 61.7 17% 1.63 43IC iFull project Low 10% 0% 10% 41.0 10.0 56.1 15% 1.50 321iD Full project Low 10%i 10%; 10% 45.1 11.0. 61.7 14% 1.40 271E Full project High 0% 0%' 10% 41.0 10.0p 51.0 20% 1.97 551F Full project High 10% 0%. 20% 41.0' 10.0t 56.1 20% 2.08 691G Full project, switching values Low 15%: 21% 0% 49.6 12.1: 71.0 10% 1.00 02A Wihout Can Tho-Ca Mau High 10% 0% 10% 26.2 5.01 34.4 19% 1.80 3528 Whout Can Tho-Ca Mau High 10% 10%: 10% 28.9 5.5' 37.8 18%; 1 69 322C Wihout Can Tho-Ca Mau Low 10% 0% 10% 26.2 5.0' 34.4 17% 1.65 282D Wihout Can Tho-Ca Mau Low 10% 10%. 10% 28.9 5.5' 37.8 16%. 1.55 252E WVhout Can Tho-Ca Mau High 0% 0% 10% 26.2 5.0 31.2 21% 2.05 402F Wihout Can Tho-Ca Mau High 10% 0% 20% 26.2 5.0: 34.4 21% 2.14 492G Wchout Can Tho-Ca Mau, switch. val. Low 15% 43% 0% 37.5 7.1 51.4 10% 1.00 0

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7. IMPLEMENTATION SCHEDULE

7.01 The implementation schedule of the works is shown in Figure 7.01.The main activities related to the implementation can be listed as follows:

- resettlement action plan;- environmental monitoring;- dredging;- bridge construction;- aids to navigation;- river training works;- technical assistance.

The implementation of these activities will be discussed hereafter.

A. Resettlement Action Plan (RAP)

7.02 The RAP is principally concerned with two stretches of thewaterways:

- Kien Luong to Sa Dec (KL-SDI;- Ca Mau to Can Tho (CM-CT).

7.03 The two basic activities related to the RAP are preparations andimplementation. RAP preparations and implementation will be more intensive forthe Ca Mau to Can Tho route as far more people have to be resettled along thisroute than the other route. By starting with the KL-SD route, experience can begained with the resettlement process (on a low scale) which will helptremendously with the resettlement of the CM - CT route (on a high scale).

7.04 These activities are shown to proceed any dredging activities in theimplementation schedule however, there can be some overlap in these activities.A more detailed time schedule of the RAP implementation can be found in VolumeIlIl : Resettlement Action Plan (RAP).

B. Environmental Monitoring

7.05 The environmental monitoring comprises four main activities.

- pre-dredge survey;- interim dredge survey;- post dredge survey;- maintenance survey;

7.06 The pre-dredge survey involves comprehensive soil investigations(including laboratory testing), bathymetric surveys, topographic surveys and thegathering of additional base line data in order to provide more detailed backgrounddata on water quality, acid sulphate soils, flora and fauna.

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7.07 The interim surveys involve bathymetric and topographic surveys tomonitor dredging progress and water quality sampling to monitor the impacts otdredging and acid water run-off on the surrounding environment. These surveysare carried out throughout the duration of the dredging activities.

7.08 The post dredge surveys involves bathymetric and topographicsurveys to check that the dredging work has been carried out conform thecontract, and water quality sampling is carried out to verify environmentalconditions in the waterway.

7.09 The maintenance survey involves water quality sampling and is carriedout every three months after dredging has been finalized in order to verify theenvironmental conditions in the waterway. These surveys will be continued in allwaterways for one year after all dredging has been finalized.

7.10 Ihe frequency and the detail to which all the above surveys arecarried out is described in Volume IV : Part 2 : Environmental Monitoring Plan.

C. Dredging

7.11 If dredging is to commence around October 1997 then the pre-qualification of contractors should start in the last quarter of 1996. During the lastquarter of 1 996 the required tender documents including drawings and technicalspecifications will be completed within the scope of the detailed design phase ofthe Inland waterways project. Once suitable contractors have been pre-qualifiedthe tender procedure can start at the beginning of 1997.

7.1 2 At the present time it is thought that the dredging works will be split-up into a number of different contracts. The exact definition of these contracts willbe delineated in the detailed design phase of the project. The dredging works areexpected to commence in the last quarter of 1997 and to be finalised at thebeginning of the year 2000. The total duration of the dredging works is thereforeexpected to be in the order of about 2.5 years.

7.13 The sequence of dredging is very important with respect to:

- mitigating possible environmental impacts of dredging;- programming resettlement of people living on the banks of the waterways;- dredging the most important and busiest waterway first.

7.14 It is proposed to start dredging at Kien Luong and to proceedupstream dredging the Rach Gia - Ha Tien canal first and then the Rach Soi - HauGiang canal. There are many reasons for starting at Kien Luong and dredgingupstream and these are listed below:

- the Hat Tien - Rach Gia canal is a very busy route and it is desirable to havethis route operational as soon as possible;

- the need for resettlement is relatively low along this canal and thereforeexperience can be gained with the resettlement process which will help whenthe resettlement process starts along the Ca Mau - Can Tho route;

- dredging in an upstream direction is desirable as turbidity will only influencethe canal downstream;

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7.15 The Rach Gia - Ha Tien canal contains the most acid sulphate soils inrelation to the entire area to be dredged and therefore dredging should beprogrammed to dredge this part during the rain season the increased waterwaydischarge will aid in diluting acid water run-off from reclamation areas.

7.16 Once the Rach Gia - Ha Tien canal and the Rach Soi Hau Giang canalhas been dredged, dredging should progress to the waterway sections Sa Dec -Cho Lach and Cho Lach - HCMC. In this way one of the waterway routes will becompleted. Thereafter, the route Ca Mau - Can Tho - Cho Lach can be dredged.

D. Bridge Construction

7.17 A total of 5 bridges will have to be either renovated/re-built. Theseworks involve demolition of the existing bridge and reconstruction of a new bridge.The time for executing these works varies from 5-7 months for the Thoi Binhbridge to 9-1 2 months for the bridge at Kien Luong.

7.18 The programming of these works will have to be well coordinatedwith the dredging activities. At this stage it is assumed that the bridge will bedemolished before dredging takes place at the bridge location and that theconstruction of the new bridge will take place after dredging has finished at thatlocation. This will not always be possible and therefore a detailed scheduling ofthese works with respect to bridge construction and dredging works will have tobe prepared in the detailed design phase.

E. Aids to Navigation

7.19 Aids to navigation will be placed once the dredging works arecompleted along a particular stretch of the waterway. As with the othermarine/civil works, a lengthy pre-qualification and tendering process ofapproximately 9 months will be required before procurement and delivery ofnavigation aids which could take another 6 months. The placement of thenavigation aids is e!timated to take an average of 6 months per waterway stretch.

F. River Training Works

7.20 The river training works are two fold and comprise bank protectionand the construction of deflection structures in the Rach Gia - Ha Tien canal. Thebank protection which is envisaged involves protecting existing locations wherebank erosion is severe. Bank protection has been programmed within theimplementation schedule to immediate follow the dredging works.

7.21 The construction of the rock deflection structures can only be initiateduntil the waterway stretch has been widened at those places. Therefore thisactivity has been programmed together with the dredging work in the Rach Gia -Ha Tien canal. It is expected that these works can commence around thebeginning of 1 998. The duration of these works is relatively short (approx. onemonth per location)

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G. Technical Assistance/Training

7.22 As discussed in chapter 9.B, both the Project Management Unit (PMU-SW) and other project officials (to be selected) do not have sufficient experiencefor managing and supervising the construction of large scale engineering works.It is therefore important that training and technical assistance is provided for thePMU and project officials during the entire course of the project.

7.23 At this point in time the Technical Assistance and Training isenvisaged to be in several blocks varying between 2 months for the PMU and 6months for the key project officials. The training and technical assistance isexpected to be more intensive for the key project officials and therefore expatriatestaff should be present during the course of the project to provide advice as wellas on-the-job training.

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8. INSTITUTIONAL, T.A. AND EQUIPMENT REQUIREMENTS

A. Institutional Aspects

a) Existing Situation

8.01 A number of institutions are presently involved in the managementand supervision of the waterways in southern Viet Nam and these include:

- Ministry of Communications and Transport;- Viet Nam Inland Waterway Department;- South Viet Nam Inland Waterway Sub-Department;- Project Management Unit - Southern Waterways- Steering Committee.

8.02 The Viet Nam Inland Waterway Department (IWD) was formed by theVietnamese Government by Decision N 08 CP dated 30th January 1 993 andreports directly to The Ministry of Communications and Transport. The Head officeis in Ha Noi. The IWD is responsible for waterway communication and transportthroughout the entire country, including the communication and transportation onrivers, lakes, canals, coastlines near the gulf, routes from the bank to the islandsand among the islands.

8.03 In southern Viet Nam two organizations have been formed:

- South Viet Nam Inland Waterway Sub-Department;- Project Management Unit - Southern Waterways.

8.04 The South Viet Nam Inland Waterway Sub-Department(IWSD) wasformed by the Vietnamese Government (Ministry of Communications andTransport) by Decision N 1477 QD/TCCB-LD dated 23rd July 1993. The IWSD ispart of IWD and is responsible for carrying out the duties of state management ofwaterway commUnication and transport in south Viet Nam. The IWSD directly toIWD and the Head office of IWSD is in Ho Chi Minh City.

8.05 The IWSD comprises a number of Divisions (N10, N 1l, Nl12, N13 andN14) which are directly responsible for day to day management and maintenanceof different waterways within southern Viet Nam.

- N10/N14 : HCMC and Long An provinces- N 1 : Tien Giang and Ben Tre provinces- N12 : Can Tho, Soc Trang and Ming Hai provinces- N13 : An Giang and Kien Giang provinces

8.06 The operational units of the Divisions which are responsible for the day-to-day management of the waterways are termed Waterway Stations. There are atotal of 25 stations scattered throughout the Mekong Delta. The principal dutiesand responsibilities of the Waterway Stations are:

- surveying the waterway to check on depth and detect possible obstacles;- installing, checking and maintaining the navigation aids on the waterway;- policing the waterways and upholding the laws and regulations thereof.

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8.07 A Project Management Unit - Southern Waterwavs has been formedby the Vietnamese Government (Ministry of Communications and Transport) forthe management and implementation of inland waterway transport projects insouthern Viet Nam. The PMU-SW has it office in Ho Chi Minh City and reportsdirectly to IWD in Han Noi.

8.08 A Steerina Committee has been established by the Ministry ofCommunications and Transport and their task is to monitor and report directly tothe Ministry in Han Noi on the progress and activities of the PMU-SW.

b) Proiect Implementation

8.09 A number of institutions are going to be involved in theimplementation, management and supervision of the Inland Waterways Projects.The principal institutions include the following:

- Steering Committee;- Project Management Unit - Southern Waterways;- Foreign Consultants.

8.10 The PMU-SW should be seen as the implementation agency of the IWDfor the proposed project and is completely responsible for the implementation andexecution of the project. They will appoint project officials to manage andsupervise the marine/civil works. The main duties of the PMU-SW should be:

- manage project funds;- draft contact documents for marine/civil works- assess and select suitable contractors for the marine and civil works;- monitor, inspect, manage and guide project implementation and execution.- approve and effect all payments;

8.11 In order to execute the project the PMU-SW will require technicalassistance from foreign consultants to advise on technical matters, provideguidance on project implementation and to provide training to the PMU-SW andproject officials. The foreign consultants should report directly to the PMU-SW.

8.12 The main duties of the Foreign Consultant should comprise:

- assisting the PMU in the pre-qualification of contractors for the dredgingworks and the procurement of the aids to navigation;

- assisting the PMU in the assessment and selection of suitable contractors forthe dredging works and the navigation aids;

- providing on-the-job training of PMU officials and project selected officials;- provide technical assistance to PMU during the execution of the project.

B. Strengthening IWD/Technical Assistance

8.1 3 The implementation of the Inland Waterways and Port Modernizationproject will place a heavy demand on the PMU-SW as well as the Inland WaterwayDepartment. Both organizations lack experience in the management andsupervision of such large projects and therefore the personnel of theseorganizations will require technical assistance and training during the execution ofthe project.

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8.14 A training programme should be established for management of theProject Management Unit (PMU). This training could comprise short visits toforeign organizations to observe and discuss management and maintenance ofprojects in the fields of dredging, water transportation, environmental monitoringetc. In addition, seminars can be organized in Viet Nam by foreign specialists inthe same fields.

8.15 A training programme should be established for specialized officialswho will be given key positions in reconstruction and maintenance of thewaterways and in the operation and maintenance of navigation aids. Under theguidance and supervision of foreign specialists and technicians, the specializedofficials can be trained on-the job. This training programme should be preparedtogether with the PMU during the detailed design phase of the project.

8.1 6 Providing users of the waterways with up to date information regardingwater levels, river discharges and current velocities is an important task of theInland waterways Department. In order to achieve these goals someinstrumentation will be required such as water level gauges, current meters,sediment samplers and general position fixing equipment.

8.17 Furthermore, the system of communications in the area should beimproved. Communication within the project area is at present via the telephone.There is no network of radio communication within the project area. In order toenable the Inland Waterway Department to function in a professional and efficientmanner, a system of radio communications will have to be established betweenthe various regional offices and sub-stations.

8.1 8 Office equipment will also be required for the various waterway stationssuch as computers, printers, plotters, photocopiers, faxes, draughtsmen table etc.

Table 8.01 Breakdown of costs for Strengthening IWD

Items - Costs

Training and TA PMU 200.000 750,000Key Personnel 550,000

Instrumentation 300,000

Communications 450.000

Office equipment 300.000

1.800,000

C. Auxiliary Equipment Requirements

8.1 9 In order to provide the Viet Nam Inland Waterway Sub-Departmentwith the means to maintain the waterways in a safe and efficient way, additionalequipment will be required:

8.20 A number of buoyage vessels (8 in total) will also be required for placingand maintaining the aids to navigation system and the existing workshop will haveto be upgraded to enable it to perform maintenance work. These items have notbeen included in the cost estimate for the aids to navigation.

8.21 Once the waterways have been dredged and marked it will be necessaryto patrol them regularly and therefore patrol boats and speed boats are anecessity. For patrolling the waterways in the project area a total of 5 large patrolboats (250 HP) and 20 small speed boats (40 HP) should suffice.

8.22 A breakdown of the aforementioned costs is given in Table 8.01 below.

Table 8.02: Breakdown of costs for Auxiliary Equipment

Items Costs[US$]

Buoyage vessels USS 75,000 x 8 600,000USS 150,000 x 1

Workshop equipment 200,000

Speed boats USS 17.500 x 20 350,000

Patrol boats USS 20,000 x 5 100,000

TOTAL USS 1,250,000

APPENDICES

APPENDIX 1

Cargo Flows - Mekong Delta

App. 1 Table 1. Projection of cargo volume Transported from Mekong Delta Province for 2000 (1 000 tons)Origin Zones Provinces nice Cereal Food Timber Cement Stone Other Total

3 An Giang 685 70 45 60 600 70 1,5304 Dong Thap 770 60 20 10 2 8625 Kien Giang 485 90 30 70 880 200 140 1,8956 Can Tho 240 90 40 10 862 1,2427 Soc Trang 366 35 25 20 24 4708 Long An 478 40 20 10 22 5709 Tien Giang 452 110 30 20 150 762

11 Minh tHai 312 50 50 40 23 47512 Vinh Long 202 80 30 20 123 45513 Tra Vinh 240 . 35 30 15 25 34514 Ben Tre 140 30 25 253 4a8

Totel 4,230 800 350 300 880 800 1,694 9.054

App. 1 Table 2. Projection of cargo volume transported to Mekong Delta provinces for 2000 (1000 tons)Destination Provinces Fertilizer Cement clinker Stone Timber Steel Petroleum Other Toali

Zones Send equipment products3 An Gieng 173 165 140 55 32 78 69 7124 Dong Thep 128 120 250 49 28 60 51 6865 Kien Giang 241 180 30 24 60 25 5606 can Tho 163 165 460 110 72 309 1090 2,3697 Soc Trang 127 110 244 45 28 37 73 6648 Long An 165 100 250 60 30 42 49 6969 Tien Giang 128 145 41O 38 32 57 41 621

11 Minh Hai 155 140 300 60 25 85 87 852 212 Vinh Long 106 95 200 35 27 30 62 55513 Tra Vinh 88 85 160 30 26 25 26 44014 Ben Tre 70 120 178 35 26 45 26 500

Total 1,544 1,245 2,542 547 350 828 1,599 8,655 5

App. I Table 3. Projection of cargo volume transported from Mekong Delta provinces for 2015 (1000 tons)Orig9i Zonios Prowincres RIce Cereal Food Timber Cement Stone Other Total

3 An Giang 735 120 66 87 1150 11 2,169

4 Dong Thap 919 115 58 45 161 1,298

5 Kien Giang 571 140 58 130 1420 250 987 3,556

6 Can Tho 266 90 77 22 2553 3,008

7 Soc Trang 424 130 48 45 493 1,140

8 Long An 565 130 38 22 368 1,123

9 Tien Giang 507 130 58 45 526 1,266

11 Minh Hai 367 165 96 130 123 881

12 Vinh Long 230 150 58 45 449 932

13 Tie Vinh 270 160 58 45 198 731

14 Ben Tre 170 60 34 346 610

Totel 4,854 1,500 675 650 1,420 1,400 6.215 16,714

App. 1 Table 4. Projection of cargo volume transported to Mekong Delta provinces for 2015 (1000 tons)Destination Provinces Fertilizer Cement Stone Timber Steel Petroleum Other Total

Zones Clinker Send Equipment products

3 An Giang 240 372 565 120 85 132 111 1.625

4 Dong Thap 200 325 553 120 78 102 58 1,436

5 Kien Giang 260 515 90 60 100 26 1,051

6 Can Tho 200 385 670 180 120 450 1197 3,2027 Soc Trang 170 280 476 90 74 88 69 1,247

8 Long An 220 270 449 110 78 85 24 1,2369 Tien Giang 180 360 622 100 83 105 160 1,610

11 Minh Hai 200 370 650 130 62 152 309 1,87312 Vinh Long 120 230 400 90 70 76 81 1,067

13 Tra Vinh 110 220 375 80 70 70 61 986

14 Ben Tre 80 306 510 90 70 90 65 1,211Total 1,980 3,118 5,785 1,200 850 1.450 2,161 16,544

App. 1 Table 5. Origin and destination of total cargo projected for 2000 ( 1000 t)O\D 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Total

1 180 12 6 48 2462 174 30 25 110 30 5 35 35 4443 10 125 80 300 130 80 595 140 70 1,5304 140 200 10 10 10 440 32 20 8625 100 125 85 360 105 850 200 70 1,8956 12 140 135 130 155 50 105 320 120 55 10 10 1,2427 350 5 70 10 15 10 10 4708 10 10 90 10 10 425 5 5 5 5709 50 5 20 55 5 10 582 15 10 10 76210 60 355 456 300 548 201 546 451 300 265 400 455 4,33711 165 10 20 120 20 140 47512 125 10 80 10 20 205 5 45513 10 80, 10 15 210 15 5 34514 10 10 150 8 260 5 5 448

Total 256 1,025 712 686 560 2,369 664 696 621 4,145 852 555 440 500 14,081

App 1 Table 6. Origin and destination of total cargo projected for 2015 (1 t_000_t)O\D 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Total1 360 24 12 250 6462 410 150 150 115 250 150 150 1,3753 340 200 200 400 215 549 115 100 50 2,1694 250 100 20 20 20 808 50 30 1,2985 150 510 818 340 1118 420 200 3,556 6 30 200 350 100 350 255 150 190 420 640 83 120 120 3,0087 10 365 10 700 15 20 10 10 1,1408 15 15 65 15 20 963 10 10 10 1,1239 250 10 30 60 8 20 838 20 15 15 1,260

10 150 491 906 356 337 294 1036 1200 643 419 736 1036 7,60411 165 100 10 30 300 25 251 68112 150 20 150 20 582 10 93213 20 235 25 411 30 10 73114 25 25 110 30 10 20 350 10 15 15 610

| Total 755 1,800 1,625 1,436 1,051 3,202 1,247 1,236 1,610 7.240 1,873 1,067 986 1,211 2639Toa 7_4 . 1._.,16 9:::_ _. ,: I . 1 : 26 9

App. 1 Table 7. Fraction of total cargo flow using IWT for 2000 (modal splitl

OWD 1 2 3 4 5 6 7 8 9 10 11 12 1 4 Avorage1 1.00 0.83 0.802 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.003 0.8 1.00 0.55 0.52 0.52 0.50 0.95 0.80 0.50 0,754 1.00 0.70 0.70 0.55 0.65 0.60 0.80 0.70 0.705 1.00 0.50 0.50 0.85 0.85 0.85 0.75 0.70 0.806 1.00 1.00 0.40 0.65 0.65 0.25 0.45 0.80 0.65 0.50 0.40 0.70 0.667 0.65 0.80 0.80 0.80 0.65 0.70 0.70 0.688 0.65 0.80 0.65 0.65 0.65 0.80 0.80 0.75 0.75 0.779 1.00 1.00 0.40 0.80 0.60 0.50 0.55 0.80 0.80 0.90 0.61

10 0.65 0.25 0.8,0 0,78 0.79 0.25 0.35 0.77 0.55 0.35 0.40 0.5011 1.00 0.65 0.65 0.52 0.55 0.55 0.7112 1.00 0.50 0.65 0.65 0.70 0.55 0.75 0.7013 0.50 0.65 0.65 0.70 0.55 0.60 0.75 0.5914 0.85 0.65 0.60 0.60 0.45 0.80 0.80 O.'53

Average 0.76 1.00 0.60 0.26 0.80 0.70 0.70 0.29 0.41 0.71 0.76 0.61 0.38 0.43 0.66

App. 1 Table 8. Fraction of total cargo flow using IWT for 2015 Imodal split)

O\D 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Average1 1.00 0.83 1.00 0.612 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.003 1.00 0,60 0.60 0.60 0.90 0.80 0.60 0.60 0.694 1 ,00 0.70 0.70 0.55 0.65 0.60 0.70 0.685 1.00 0.50 0.85 0.85 0.85 0.75 0.70 0.796 1.00 1.00 0.40 0.25 0.60 0.65 0.25 0.45 0,60 0.65 0.40 0.40 0.40 0.567 0.25 0.50 0.65 0.70 0.80 0.65 0.65 0.65 0.638 0.60 0.60 0.50 0.60 0.45 0.50 0.60 0.60 0.60 0.519 1.00 0.65 0.40 0.55 0.60 0.45 0.45 0.60 0.60 0.60 0.57

10 0.65 0.25 0.70 0.65 0.60 0.25 0.35 0.70 0.55 0.35 0.40 0.41 1 1.00 0.65 0.65 0.52 0.55 0.55 0.4912 1.00 0.50 0.65 0.65 0.55 0.75 0.6413 0.50 0.65 0.65 0.55 0,60 0.75 0.6914 0.85 0.65 0.60 0.60 0.45 0.80 0.80 0.50

Average 0.58 1.00 0.58 0.39 0.56 0.69 0.68 0.26 0.42 0.60 0.70 0.65 0.37 0.41 0.59

App. 1 Table 9. Cargo projection by waterway for year 2000 - low scenario (1000 t)OID 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Tot81

1 160 10 6 1962 174 30 25 110 30 5 35 35 4443 8 125 44 156 68 40 565 112 35 1,1534 140 140 7 6 7 264 26 14 6045 100 63 43 306 89 723 150 49 1,5236 12 140 54 85 101 13 47 256 78 28 4 7 8257 228 4 56 8 10 7 7 320a8 7 8 59 7 7 340 4 4 4 4409 50 5 8 44 3 5 320 12 8 9 46410 231 114 24p 427 159 137 158 231 146 140 182 2,16511 165 7 13 62 11 77 33512 125 5 52 7 14 113 4 32013 5 52 7 11 116 9 4 20414 9 7 90 5 117 4 4 236

Total 194 1,025 426 249 448 1,652 464 201 253 2,947 649 337 167 217 9,229

App. 1 Table 10. Cargo projection by waterway for 2015 - low scenario (1000 t)OXD 1 2 3 4 B 6 7 8 9 10 11 12 13 14 Total

1 360 20 12 3922 410 150 150 115 250 150 150 1,3753 340 120 240 129 494 92 60 30 1,5054 250 70 14 11 13 485 35 8785 150 255 695 289 950 315 140 2,7946 30 200 140 25 210 166 38 86 252 416 33 48 48 1,6927 3 183 7 490 12 13 6 7 7218 9 9 33 9 9 482 6 6 6 5699 250 7 12 33 5 9 377 12 9 9 723

10 319 227 249 219 176 259 420 450 230 258 414 3,22111 100 7 20 156 14 138 43512 150 10 98 13 320 8 59913 10 . 153 16 226 18 8 43114 21 16 66 18 158 12 12 303

Total 440 1,800 948 562 594 2,208 849 317 685 4,372 1,303 691 369 500 1 5,638

App. 1 Table 1 1. Cargo transported by inland waterway for 2000 - high scenario (1000 t)O 1 2 3 4 5 6 7 8 9 10 1t 12 13 14 Total1 207 11 7 2252 200 48 69 126 69 11 40 70 6333 9 155 51 269 78 46 442 239 40 1,3294 161 161 8 6 7 317 29 16 7055 126 75 55 645 102 4 4 645 181 137 43 2,0176 14 172 64 3 101 119 17 54 386 97 31 23 96 1,1777 3 261 5 106 9 11 8 8 4118 7 9 75 7 7 437 5 4 4 5559 57 6 9 60 2 6 311 14 9 10 48410 291 116 276 412 171 178 254 274 227 112 175 2,48611 236 7 15 179 13 158 60812 144 67 7 16 186 4 42413 6 67 7 12 177 4 27314 15 11 110 12 140 9 9 306

Tot81 X 223 1,258 530 326 518 2,382 526 257 370 3,305 869 560 208 301 11,633

App. 1 Table 12. Cargo transported by inland waterway for 2015 - high scenario (1000 t)010 1 2 3 4 5 6 7 a 9 10 11 12 13 14 Total1 367 20 12 3992 418 153 153 117 255 153 153 1.4023 347 122 245 132 799 94 61 31 1,8314 255 71 14 11 13 424 36 8245 204 335 791 337 1040 344 3,0516 82 204 184 51 245 199 51 96 339 477 37 49 49 2.0637 4 7 186 7 500 12 13 7 7 7438 9 9 33 9 9 491 6 6 6 5789 255 7 12 33 5 9 385 12 9 9 73610 519 279 338 356 266 346 517 650 454 331 521 4,57711 102 8 20 159 11 286 58612 153 99 13 21 326 8 62013 156 17 14 231 8 42614 17 13 67 6 161 8 8 280

Total 500 1,887 1,244 651 727 2,463 1.009 417 830 4,982 1.577 | 780 441 608 18,116

APPENDIX 2

Sensitivity Analysis

Appendix 2 Table 1, Summary of sensitivity analysis

|__ _ __ 1 Assumptions Costs Indicators

0_ oEE

cv~~~~~U

- cci -~~~~~~D r-Uci R a o, -c E - = ,1Ilot eig 10%j 0% 0 0 0

1CTFlprjcLo 0 E010 10% 4. 10561 5% 150 3

cci o~~~~~~ ~~ ~~~~~ c; E oLcw !Remnark cci o; Sio~ 0 ct

1A iFull project (base case) High 10%J 0% 10% 41.0, 10.0156.1 18%1 1.75 471B Full project High i 10%1 10%: 10% 45.1 1 1.0:i 61.7 i7%1 1.63 4310C Full project Low I10%! 0% 10% 41.01 10.01 56.1 1,5%1 1.50 32iD IFull project Low 10%) 1 0%, 10% 45.1! 1 1.Oj 61.7 14%J 1.40 271E8 Full project High 0) %1% 41010.0~ 51.0 20%1 1.97 551F IFull project High 10% 0%! 20% 41.0 10.0 56.1 20%J 2.08 691G Full project switching values Low 15%' 21%' 0% 49.6 12.1 71.0 10% 1.00 02A IWihout Can Tho-Ca Mau High! 10% 0% 10% 26.2 5.01 34.4 19%W 1.80 3528 IWihout Can Tho-Ca Mau Highi 10%1 10%. 10% 28.9 5.5! 37.8 18%1 1.69 322C IWihout Can Tho-Ca Mau Low 10%' 0%I 10% 26.2 5.0 34.4 17%! 1.65 282D IWihout Can Tho-Ca Mau Low 10% 10%, 10% 28.9 5.5 37.8 16% 1.55 252E IWihout Can Tho-Ca Mau High 0%! 0%; 10% 26.2 5.0: 31.2 21% 2.05 i 402F Vihout Can Tho-Ca Mau High, 10% 0%, 20% 26.2 5.0' 34.4 21%l 2.14 492G Wihout Can Tho-Ca Mau, switch. val. Low 15% 43% 0% 37.5 7.1 51.4 10% 1.00 0

Appendix 2 O'able 2. Economic evaluation 1A Full project ibaso case) (USD mun)199190 99 2000 -2001t 21X 203 20 2005 2006 2001 2008 2009 2010 2011 201 20`13 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

VAVI,anspof costs 25.15 29 21 33 27 37.33 38,29 39 24 40.18 4113 42 07 43 00 43 93 44686 4578 46 70 47.61 48.52 49.42 50.31 51.20 52 08 5295 53 82 54 68 5553 56039 72 80 58 87Addt oaIs o 000 000 0 00 0 49 1.02 1 57 2.16 2379 3 44 41 8 6 4 .4 91 .1 99 09 15 10 41 52 64 72 1.7 21 11 22_99MIavten- ls dredgw 2 01 2,01 20Of 2.01 2 01 2 01 201f 2.01 2 01 2 01 2 01 201l 201 201 2 01 201 2.0 2 01 201 201l 2.01 2 01 2.01 2 01 2 201 2 01 2.01 2.010&M ofg __o4v8ds 0.25 025 0 25 025 025S 0.25 0.25 025 025 0 25 0 25 025 02 025 02 05 0.5 .5 05 05 05 025 25 25 25 25 25 .5ToAaI 27 40 31,46 35 53 -4006 41586 43,s07- 44.60 46.17 47.26 -49391 510 _5 5273 5445 56.19 57.92 59.78 61621 63 49 65.40 2.3 69.20 71.31 73.34 _75 41 77 51 _7984 81981 84 02

With projiEl

'lt-anlpsilWIl 25151 28228 28 2-9.85 3-051 -31.16 2_1.82 32.-48 33 14 23379 34 45 3511 3-5.76 36.42 37.06 27.74 28.29 29.05 39.71 40.3 4 1.02 4159 423 42 98 4365 -44.31 44 90 4562Wok. 13 67 13267 13 67 __

R saeIllOmentl04 4 88 4.710.4 -- -I - - - - - - -01 30 301 01 3.01 301 3.01 301 301 301 301 30 .1 30 .1 30 0 0 0 0Mainl&ancac dIet. q_ 1.00 201 3.01 3,01 3.01 3,01 3 01 31- 1 31- 0 0 - .1- ---- 3 1 i01-oO&M Oridgol. Nvsaids (_____ 05 1.16 1.16 1.16 1.16 1,16 1.16 1 .16 1.16 1.16 1.16 1.16 1.16 1.16 1.16 1.16 1 16 1.16 1.16 115 118 1 16 118 118 A168 1.1

-n~nwnalm5 0 00 00 0.2 02 .2 0022 0 0002 02__ __ 0 0.02 0 02 0 02 0 02 0002 02 0202 0 2 002 0.02 0 02 00202 2 02 0.02Si,enqthenttg WNS 1 75 ___

PhYa.cl OI-ngItiaOt 141 195 2.10 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0 42 0 42 042, 0.42 0 42 0.42 0.42 0 42 0.42 0 42 0 42 0 42 0 42 ~042 042 0 42 042 0 47total44 02 5.6 3.5 31 56 34 70 3-7.74 28.29 39.0 39.71 4036 41.02 41.598 4233 42.99 43.65 44.31 44.9 562 4626S 46 93 47 59 465 48 91 49 56 50 22

P;lci.elh__ -000 2 49 -499 -797 8 80 9 65 10.53 11.44 12 37 13 34 14 34 15 37 I6 43 l? 8 64 19,79 20.9 22.19 23 44 24.72 26 03 27.37 28.75 30.16 318 3309 246 36.14PVOJ.CI COIlS ~~~15 20 19i 50 2-1 07 2 59 2659 2 59 2,59 259 2.59 2 59 2.59 259. 2 59 2.959 9 .59 2.59 2.59 2_59 2.59 2.59 2.59 2.59 2 59 2 59 2 59 2 59 2 59

Cash flow .50 170 -609 53 80 705 7.93 a .84 9.78 10.75 11.75 12.77 13 83 49 641-7 20 18 38 19 59 20984 2212 243 248 26,16 2757i 2901 306 iO49 -320 TC 335-5

E RR_ _.178 - Assumnp tons:8UC aIIO)1.7 Ca foor6cast H ~ Incusmenled captalcoslas a,ompwed to I ___

-NPW(1% 47 Physic-alcooirtgencts 10% (Cato divtededtoroads9in wsostlcaseby 2015 10%

Appendix 2 Table 3. EconomIc evaluation 18 Full project (USD mln)187 298 18I 20001 202 200200 004 O-2122005 200 200? 2 20 2009 2010 2011i 2012 201i3 2014 2-015 20D1 6 -2017 i 20 8 201--l9 2 -020 201 202? 2023 22

W~ 4iranspon costs 251 292 732 37233 2929 39 24 4018 41 13 420 430 49 46 478 4.0 46 82 44 01 52 2-08 5295 5382 5468 -5553 5063-8 522 5805 5 8-8Add VaelrnS 0 0 0 0 049 102 2.57 2216 27 3.4 .1 4 86 56 642 7.24 811i 91 995 083 1l95 100 14l 1 5 23 16 40 172 18 07 21 51 28

Mainten ance&e0.,g 2 02 01.1 21 0 201 20Of 2 0? 2.01 2 02 2 01 2 0_1 _201 .2_01 2 01 2 01 2-01 -2 01 -2 01 -201l -2 01 -2 01 2 01 201 201- 201 201 -2 .0'2&M Bridges. Navei,d, 0 25 0 25 0 25 0 25 0 25 -025 0 25 0 29 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0.25 0 25 0.25 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0 2 0.25

Total ~~~~~27 40 31II46 35 53 40 08 41.56 4307 44.60 46 17 47.76 49 39 -52.05 52.73 _54 45 _5619 57.9? 59.781 61621 63.49 65.40 67 33 6930 71 31 73 34 75 41 77 51 29064 81 81 _8402

Transpod co$!$ 251 26172 28 28 29 85 30 511 31.16 31.82 32 48 3314 2283 44 35.21 35 76 -36.42 37 08 37.74 38 39 39 05 39.1 4036 41.0 41 68 42 33 4295s 43 65 44 31 44 96 45-62Works ___ 104 250 4 15 04Rleselllemoent - a 047 -534 -5 28Ma.meneanCe dredgrrg 1.00 2Of 3 01 3202 30f 30 32 02 01001 31O - 3 .1201 31 30f2033001 1 3.01 3001 31 301 3 01 30 31 31042 Brdgss. Navards ___ __ 05 11 6 1.16 1.26 1.16 1216 1.16 1 16, 1.16 1.16 1.16 1 16 1.16 1.116 1 16 1.16 1.16 1 16 1 16 1. 16 1. 16 11i6 1.16 1 16 1106 1.16EnvrrorwIentlmaImgagem 0 05 002 0062 0 02- 002 0 02 0 02 0 02 002 0,02 002 0 02 0 02 002 002 002 0 02 0 02 00D2 0.02 0 02 00T2 -0062 D 002 0062 002 002 -002Strenglth.ning WMS I . _ _ . ..- . -Phys$clc8coilwer"t I155 21i4 _228 0 42 0.42 0 42 0.42 0 42 0.42 0 42 0 42 0 42 0 42 0 42 0 42 0_242 0,42 0.42 0.42 0 42 042 043 042 064-2 0 42 -04-2 04A2 -0 42

Total ~~~~~~44 00 50.26 53 38 34 45, 35.1 1 35.76 28.42 37.08) 37.74 38239 39 05 38 71 40 36 41.02 41 68 42.33 4299 42.65 44 31 44 96 45 62 46 28 46 93 47.59 48 25 48891 -- 4956 50.22

Pro!jSclbe e 00 2 49 4 99 1.97 88 965 10 52 114 423 I3 244 13 63 2.2 16 19.79 297 22.19 23.44 24 72 26 03 -27.27 285 31 361 30 340 64Project costs 16 85 21 54 23 10 2 59 2 59 2 59 2 59 2 59 259 2 59 2 58 2 59 2 59 2 59 2 59 2 59 2 58 2 59 2.59 2 58 2.59 2.59 2 59 2 59 2 591 3-259 2 59 2.59CashIlo~w .16.85 -19 04 -18 12 5.38 6 20 -705 7.93 88$4 81 101?5 117 1i-2 771 13 83 14892 16.04 17.20 28 38 19 59 204 2.2 34 24.28, 26161 225 291 309 2200 33 55

EIR1R 165% Assumpllons:BIC rallo IlO%) ___±gfoeas ighb - lrmerred capietal oslsese ompiiedto IA 10% ________NPW (10%) 43 sPh SrconlI ;~enre s 10% ___Cargo diverelo roadIn witholc~sssby25 201 __ _____ __ .- .

Appendix 2 l'able 4. Economlc evaluation 1C Full project (USO min)__________________ 1997 1998 1999 2000 ~~~~~~~~~~~2001 2-~002 2003 - .-. -- -- ---- - -2004 2005 20I 2DO 2-W008 269 2010 201 2-012 2-013 2014 2-019 2016 -2017 2016 2019 2020 2021 202 2023 2024

W,thout projeci -lii _____-M M 2iiPi-- 0- --0--i - - -- ___o___

VVtranPorlccsts 25.15 2663 280 29 58 30.558 8 32 5-7 33i56! 3i455 3554i 3:6 5-2 -37.49-i 3417 3-9.43 40.40 4i1.35 -42 31 43. 25 4~419 45.13 460 68 4.0 4660 49 71 500 549 3Add. roadtLanspott 0.00 0.00 0 00 0.39 0 81 127 1.75 2 27 2 83 3.41 4 04 4 69 5.39 6.11 6.88 7.68 8.52 9.40 10.31 11.27 12.26 13 29 14.37 1 546 16564 I7684 19 08 20 36Mwaitnariceurdgw 201 20 20 20A1~ 2.1 20 2 2.0 2.101 I 1 %201 21 20 201 201i -2.001 12i -201 -2.01 -20 2.0 21 2.001 21 01 2,01 2 U1 2 01 20

O&Br gS.imvid 0.25 0.2G5 02 025 0 25 025 0.25 025 025 025 0625 02j5 025 025 -025 -0.25 -0.25 025 25 5o 25 5 025 025 25 5 0255 025 0-25 025 025Total 2i7.40 2-888 30.36 32 22 33.65 35.10 3658 38.09 39 63 41 21 428 4444 4.1 47.80 49 53 51.291 53.08 54.90 56.76 58 65 60 57 62.53 _64.52 66.54 69 60 70 69 72982 74.99

With projectTransport costs 25.15 24 54 23693 23 32 2.403 24 75 25.46 26817 26 88 27.59 28 30 29 02 29 73 30,44 31.15 1.6 357 33.29 34.00 34.71, 35.42 36.13 36.64 37.055 36 26 38 99 39.69 40 46Worrs 13.6? 36? 16ResellleMeot- 043 4 86 4 71Mesea_nle-clOdre1ger 1.00 2.01 3.01 3.01 3 01 3.01 30Of 3 01 30Of 3 01 3 01 3.01 3.01 3 01 3.01 3.01 3.01 3 01 3.01 3.01 3.01 3.01 3 01 3-01 301I 3 01 -3,01

O&M BridgeS. N5'r9i89 ______ ____ 0.58 1.15 .1 .1 116 .6 116 1.16 1,15 1.16 1.16 1.16 1.16 A1.1 1.16 -1.16 -1.16 1.16 1.16 1.16 1.16 1.16 1,16 1 16 1 16 1.16

Envvorvnerntatmagagem. 0 05 002 0.02 0.02 0.02 0.2 00 0 00 _ _ 00 0 02 0 02 0.02 0.002 02 0.2 0.02 0.02 0.02 0.02 0.02 0.02 -0.02 0.02 002 0.02 0.0

Slrengthsng WNS 1.75 - - - - - -- - -- -- --- -l'h?slcat wr~~~rncies 1.41 1.95 2.10 0 42 0.42 0 42 0.42 0 42 0 42 0 __2 ____ __ 042 0 .42 0 42 0 42 0 .42 0 .42 0 .42 0 .42 0 42 0 .42 0 42 4 0 42 0 42 0 4 42 0 42 0.42

Total 42.45 404 47.01 279 -2 28 63 219.35 30,06 30.7? 3-1.48 3219 3j2.90 3361. 3-4.33 35.04G 35.-75 36i46 37.01 37.6 3659 93 00 07 14 21 26 4 4439 450

Pfolect bgnentts_ _ 0 00 2.0 417 6 65 7,36 8.10 8.8? 9867 10.5 11,36 12 25 13 17 14 12 1 5.1I1 16.12 17.17 18 25 19.36 20.51 21.69 22 90 24.14 25.42 26 74 28 09 29 45 30 86 32 33Project costS 1530! 190 210 2.59 2.5 259 2.59 25 2.59 2 9_ 259_ 2.5-9 2i59 -2.59 2 59 2.59 2,59 2.59 2 59 2 59 2.59 2059 2 59 2 59 209 2059 2 59 2 59CashlIow .1~~-'I5 30 -17.41 -16 90 _ 0 48 55 27 7.07 780 & 878 9 65 1058 _11953 12 51 13 53 14.58 166156 16 77 1i7-92 -19.0i9 20.31 2-1.55 -22.83 24.14- 25.4 9 -269-7- 26.9 9

EIRR 13% Assumpttoo . ---. ...l .~

BIC ratio LICI%j)_ 1___ I5 Cargo for casl Low- t.c.er aita cotsa comrrpaed to IA;06- __ __ .. .

NPW(AlO -3 Physical conrlrgncies:_ 1%_ _ egdvrotorod sin.sx.A caseby 2015 10 .-

Appondix 2 Table 5. Economic evaluation ID Full project (USD mln) _

1997 199 1999 20 20011 20021 2003 2004 2005 206 00? 200 200 2010 2011 2-012 -2013 20iO14 25 2062-017 201 2-019 2020 2021 2022 2023 2024-~~~-~~ -~~~- ~ 9-58 3 5 31 58 9_35 - 34 688 47 90 AS880491 06

WN 5anipo1 costs 25_5 26_3___ i 3257 T3 i356 5i-i55 3-652 3- 938 4? 3943 40 40 41 35 42 31 432 449 413 6 __4 49 1 __ 51 49 52 37A~dd ead transponl 0 00 0.00 000 0 s9 e 081 212 176 227 38 3 -341 404 469 539 -611 -688 1. 68 8552 94 i031 112 i2 26 13 29 14~37 154 166 174 1908 202Ma.nt.narnc.dredgvVg 201O 201l 201 2.01 2 01 2 01 201 201 2 01 201 201 2 01 2.02 20of 201 2.01 2 01 201 2 01 201 2061 20 21 21 20 21 21 2008M 6,idges. Navalds 025 0 25 0 25 025 0 25 0.25 025 0 25 0 25 0 25 0 25 025 0 25 0 25 025 0 25 0 25 0,25 0 25 0 25 0 25 025 0 25 025 025 025 -025 0 25Totli 2740 288 30.6 32 22 33 65 3510 36 58 -38 09 39 63 -41 21 4281 44 44 46 11 4780o 49 531 51 29 53 09 54 901 56 76 58 651 6057 62 53 64 52 66 54 68 60 7069 _72 82 74 99

With proeict 33 YTran8polt costs 2616 24654 23.93 232 24 03 24 75 2546 261? 26 88 27.59 28 30 29 02 2973 -30.44 31.15 31.86 32 57 33 28 34.0 34 71 3642 36 13 36884 375 38 26 280 399804Wol3 15 04 15.04 1504

Reseoltment 047 5 34 5.18M~ainIenantce dedgin I__ 10 201 3201 3 01 3.01 301 3 01 3.01 301l 3 01 3 01 301 301 _301 3 01 3 01 3 01 3 01 301 3 01 3.2 3.01 3 02 3-01 3-01 _301 3.01OaM t!Le. avid 05 1.16 1.16 1 16 1~16 1.16 1.16 1.16 1.16 1 16 1.16 1,16 1.16 116 1.16 1.16 116 1.16 1.16 1 16 1.16 1.16 1.~16 1.16 1 16 1.16Envxornnintal magagemn 0 05 0 02 0 02 0 02 0 02 002 002 0.02 0~02 0-2 002 0.02 0.02 002 0 02 0 02 0.0 0 02 0 02 0 02 0 02 0 02 0 02 0 02 0 02 0 02 0 02 0 02Strengthenain S 1 75- - -- ._ - . .__ __ -_ _. -

Pnys.cat Cntwngencies 1655 2 14 2 28 04A2 0 42 0.42 0 42 042 0 42 0 42 042 0 42 0 42 0 42 0 42 0 42 0 42 0.42 0 42 0.42 0 42 042 042 042 0462 -042 0-64-2 04-2Total 440 -4808 -49-03 27.92 2863 29.35 3006r 3017? 31.48 331 i9 3i290 33 61 34 33 35 04 3575 36 46 37.17 378B8 38659 3921i 40)02 40.73 41.44 4215 4296 43 58 4.429 4500o

Project banntsla 0 00 2 09 4 17 665 7.26 82 0 8 87 9 67 100 112 12 25 13t7 14. 12 15 11 16.12 17.17 18.25 19.36 20 51 21.69 22.90 2414 25 42 26-74 28 08 29846 30_88 32 33Project costs 1685 3216i4 -230 25-iS9 259 299 2.591 2 59 2 59 2 59 2 59 2 59 2 59 259 2 59 2 59 2 59 2 59 2.59 259 25 29259 2559 29 259 259 259Cash flow .16 85 -19.45 .1893 4 05 476 550o 62?7.0 7.90 8.76 965 10 58 11.53 12651 13.53 1458 1566 16 77 17.92 19 09 20 32 21.551 2283 24.14 -25.49 267 262 297

EIRR 14 3% CAe%umplIaone:61C ratio 110%) 14 Ca loo.*as toe l.ncromnecAed capita2moot.ascoopaed to IA 10%.INPWY ill%) 27 lPhys"alcont gem,s: 10% _ Ca'g dre1ad io oad in whoui casoby 20165 10% - -__

Appendix 2 Table 6. Economic evaluation 1E Full project (USD mln)I99 1998 1999 2000 20011 2002 2003 2004 2005 2006 2007 _20D8 2009 2010 __2011 2012 2013 2014 2015 2016 2017 2018 2019 _2020 2021 --2022 2023 -2024

without -PrOJec - - ___ - -___vwWlranspca csts 215 29?!21 33 27 37 33 38 29 39 24 40 18 _41 13 42 0? 43 00 43 93 44 86 45 78 4670 476 A852 49 42 50.31 5120 52 08 52 95 53.82 54.68 55 53 56.38 522 58 05 -- 5887Add ,oadlgarrspodl 0 00 000 00 0. O49 1 02 1.7 16 279 3.4 4.3 46 6 41 7 24 8.11 9.01 9.95 10.93 11.95 13 00 1.0 15.23 1.0 17 62 18 87 201 211 22 89Mainlenancdredginlg 2_?01 2 01 20t 2.01 2 01 2.01 201 2.01 2 01 2 01 2 01 2.01 2 01 2.01 2 01 2.01 2.01 2.01 7 01 2 01 2.01 2.01 2 01 2 01 2 01 20GI 201 2 010&M Bridges. N vards 0,25 0 25 0 25 0 25 0 25 0 25 0.25 0 25 0 25 0 25 0 25 0 25 0 25 0.25 0.25 0 25 0.25 ,0.25 0 25 0 25 0.25 0.25 0.25 0 25 0.25 _025 025 02570121 21.40 31.46 ~~~~~355 406 415 4-3.0? 44.6 46.17 477 99 51 05 523 45 5.9 57.97 59.78 61.62 63.49 65 40 67.33 69.30 71.31 73.34 754 7751 796 1 81 402

T18anspor" o05$s 25.15 26 72 28 28 295 30 51 31.16 31.82 32.48 33.14 33.7-9 345 51 376 3642 3---7.08 3-7.74 3i8.39 3j905 3j9.11 40.36 4-1.02 41.68 4.33 4299 4365 -4431 44.9 4 662- vIb6s 13 67 1367? -3 67 ___

RoseItllentel 0.43 4 86 4,71Mainlenence dredging __1.00 2 01 3,01 3,01 3,01 301 3.01 30 001 3 1 301 3.01 3.01 3 01 3.01 3.01 301 3.01 3 01 3 01 3 01 3.01 3 01 301 3 01 2301 3.01'3&M Bridges, Nava,ds ___ 58 116 1. 16 1.16 r 1.1i6 1.16r 1.1 1.16 1.6 .6 1 16 1. 16 1.16 1.16 1.16 1.16 1.16 1.16 1.16 1.18 1.16 1.16 1.~16 1 16 I116 1.16Enowom~emtlaIm ga9em. 0 05 0 02 002 002 002 0 02 0.0 0 02 0.02 1102 0 02 0 02 0.02- 0.02 0.0 0.02 0.02. 0.02 0.02 0 02 0 02 0 02 0.0 0 02 0.02 0 02 0-02 0.02Strengthening WNS 1.75I I -- - - -- -- -Rh1ysicIco1 WMg, lmrs 0 00 0 00 000 0 00 0 00 0.00 0.00 0-.00 0.00 00 0 .00 O 00 0.00-o 0.00 00 0. 00 000o 0.00 0.00 0.00 0.0 0.00 0.00 000 o 000 G00 0.0 000 Total 4104 46.2? 4~~~--9-27 34 0-3 34.69 35.5 -36.0 3666- 3-7.32 -3 7.98 -38-63 3939 39.95 40.60 412 4.2 425 3.2-3 4~3.89 44.55 45.20 4-5.6 46.52 -4-7.17 -47.6 -44 -49.5 48

Prol.ctb.nellts 000D 2 49 4 99 7.97 8,80 9 65 10 53 11.44, 12.37, 13 34 14 34 15 37 643 17-.52 186 r4 19.79 20 97 22.19 23.44 24.72 26.03 27.37 28.75 30 16 -31.61 -33.08 -34.60 36.14PwkFet c8513 89 17.55 189 2 18 2.18 2.18 2.18 2.18 218S 2.18 2.18 2 18 2.18 2.18 2.18 2.18 2.18 2.18 2.18 2.18 2.18 2.18 2.18 2198 2 1 2 18 2.18 2.18Cash flow ______ -138a9 .15.05 .13.99 5.80 6 62 7.47 83 9.26 1020O 11.16 12 16 13.19 -14.25 153 69 6 80 20 16 25 35 21 67 27,98 29.43 30.1 324 3.9

EIRR - 19~7% __ Assumptlions:SiC ratIo l10%I 20 ~~Casgo f recast i h Inlaemnlrted cep4al costs as COoPrpae ols0

NPWIIO%l ~~~ ~~55 Physalconrlinglnciess 0% Cagr diveld lo toed inwdhsouAcaisby 2015- 10%

Appendix_2 Table 7. Economic evaluation IF Full project (USO min)1997 2i998 199 2000 20D01 2002 2-003 -204 2-005 2-00 2007 208 20 00 21 02 21 04 2015 2016 -2017 2018 22 00 22 02 22 0-

Without RrojectWW IrnnspodICosts -2515 2921 3327 -37.1 37 I80 349 59.215 3980 043 40 4162- 42-19 4 23 4i32-5 4-3-75 --4422 4469 45~10 45 51 4i589 46 2-4 4657 4687 ~7214 4 739 4761 -4780- 17697Add io-ad`tan-spo.l 0 00 0 00 000 - 099 204e 3 15 4 33 5 57 6 88 8 26 9711 11 23 12 82 14 48 16 21 1802 19 90 28a6 -23-89 2-6-00 -281 346 328 352 4 37.75 404 32 457Man1enance d*edgwg 2 01 202 201 2.01 20 F 20 21 01 01 01 01 0 01 01 .0 2.01 20 202201 01221 20 2.01 201 _201 2 02 202 201IO&M 6Bdqess.Na'.e,d 0i2-5 -02i5 025 025 -025 -025 -025 -025 -02 02 6 0256~ 02 5 025 -025 -025 -025 025 0-25 035 02 05 02 05 05 05 05 05 05Toil 2140 31 46 35.53 40 34 42 09 -43.89 45714 47 63 49.57 51.55 53 591 55 671 57850 59 99 62 22 64 50 66 83 69 22 71.651 74.14 76 69 79 29 81.93 6404 5,4 7.40 90 21 -93 08 96-01

MIlh projectTfanspordcosts 25 15 26 72 28 28 29 85 30 51 31.16 32.82 32.48 33 14 33 79 34 45 35 11 35. 76 36 42 37.08 37.14 38 39 39 05 39 72 40 36 -41.0 41.68 423 29 3-65 44.31- 44.96 45562Wo k s 13.67 1 36 7 1367 __ __ __________

Ilomelllernent 0-43 _4.96 4.72IMei.tLnan*cedredg 100 201 3 01 302 3 02 3.02 3 02 302 3 02 302 3 02 3 02 301 3 02 3.02 3.02 3 01 3 01 301 30 301 3.01 301 301l 301i 301 3.01OSM Boidges. Navaids ___ 058e 126 1 16 1. 16.Ii 1.16 11 2.16i 116, 1.16 1 16 1.16 116 116s 116 1.16 116s 1.16 1.16 1.16 1.16 1 16 11 is 116 116s 1-16 1.16Enoreolamgae. 0 05 0.02 002 0 02 0 02 002 0.02 002 002 002 0 02 0 02 0.02 0.02 002 0 02 0 02 0 02 002 0.02 -&0.022 0 0202 2 002 002 00 ~ 202 -002S6e!N1!e!nqV1WWS 2.75Physical con1.rVgnC.es 142 _ 195 2.10 0 42 0 42 0 42 0 42 0 42 0.42 0-42 042 0442 02 442 0 2 42 0 42 0 42 0 42 0 42 0 42 04242 2 042 0 42 04 04 02lo-la) 42-45 4T82 5236li 34 45 3511I 35 76 -36.42 3-708e 3i7-74 38ii39 39-05 3971l -4036 -41.02 41 68 42 33 42 99 43 65 44.31 44 96 45 62 46 28 46 93 47.5 48 25 49 91 46 56 -5022

Pr-ojecl benefits 0 00 2 49 499 8 23 9 33 10.47 11.66 12 89 14.18 15 51 16 88 18 31 2278-.32 22.88 -24.52 26.19 27.92 29.69 21.53 33 42 35 35 37 34 39 39 41 49 43 65 458B9 46.13Proj.cl costs 15 30 29.50, 21 07~ 2.59 2.59 2 59 2.59- 2.59 2.69- 2.59 2 59 2.59. 2 59 2 59 2 59 2.59 2 59 2 59 2.59 2.59 2.59 2 59 2 55 2 59 25959 9 2 259 2 59Cash flow -1530 -17.00 .16.09 5 64 6.74 7.88 9 07 1030 11.581 12.9 1 14 29 1 5.72 1 7.19 18 72 20 29 21 92 23.59 25322 27.1I0 2893 302 37 47 60 396 40 37 4554

EiRR 20 06' _ Assumptions: ___ __

BtC ratio 110%) 2.1 _ qs Crgoforec-asl ____tMgh ___Increnlened capital coslsuasconlparedtolIA 0NPWIIO%I ~~~~69 Phys"aIcontingencies, 10% Cargo drseredto roadinwiw8houl case byls 20015_ __ __. ~__

Appendix 2 Trable 8. EconomIc e~valuation ~IG Full projec (USO min) (swltchlng values)199? 1998 199 20002 200 t 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 205 2016 2017 2019 2019 2020 2021 202?203 24

VA'~ransorI0SIS 515 663 810 297I6 30917 3T2.18 33 41 365 390 3716 3844 393 40 24 46? 40 1 4636 4773 49 tO 549 590 31 547 518_563 s o osi 20Add.roadLransPwI 0.0 00 00 000 00 0.0000 06 0-00 0.00 000o 000 000 0.00 00000 00 0.00 0000 0 00 0 0.000 0 0Do 0.00 000 0.0 0 00 00 00

Matlnance 6 2 01 2 1 20 .1 M 2 201 20? 0i 2 01 1 2.0t 2.01 2.02 2.01201 1 201 201 2.01 201o20122.01 2 2.01 201 201 2.01 -201 -201 2.0 2.1_211 21 0OSM ,,des.Na~a4s .25 025 05 05 05 05 05 05 05 05 05 05025 05 .225 05 025 05 025 05 225 5 025- 025 0 25 0 25 0 25 02Total ~~~~~~27.40 28.88 30.36 _2202 33,22 3.444 35.66 369 38 S 39.42 4069 41.98 43 28 44.60 45.93 47.27 48.62, 49 98 51.36 52.75 54.15 55 57 56.69 58143 59 89 61 35 62 83 64.32

WithpOCt __ -- -- - _

Wo,kS 18~~~~~~54 18.54 18 54 _____ ____

Resettlement_______ 052 5.8 5 70Maainine-nce drutdging 1.00 20? 30? 3 0? 3,0 3,01 30? 3 l 301 30? 01 3 0? 3 01 3 01 3 0? 3.01 3 01 3.01 301 3.01 3 01 3.01 3.01 3 01 -301 3 01 3 01 3 01OS:M 8rid!W Iaad ______ 0.8 16 116 1 16 1.16 1.1 1116 116 1.16 1 16 1.16 1 16 1.16 1 16 1.16 i1.1 1.16 1.16 1.16 1.16 1)16 1 16 1I8I18 11

_ _'ovnnal I,aSei 0 05 0 02 0 02 0.02 0 02 0.02 0~02 0 02 00 8.02 0 0 aae.- 00.021 0 02 0.002 02 002 0.02 0.0 0 02 0.02 00202 2 002 0.02~ 0,02 002 02 00Strengthenrlg SIWS 1.75 - - - - - - __ __ __Physical corlllgnerxs 2.56 3 5? 3 72 0 62 0862 0.62 0.62 062 06 6 .62 0.62 02 .2 06 262 0.62 2 .6 062 0 62 0 62 0.62 0 62 082 06 02 02Total 4~~~~~6,56 51.49 52.50 28.13 284 28.55 3027 30 98 31.69 32.40 33 1? 33862 34 53 35.25 359 66 7.8 3.9 3.0 91 4.3 404 4.5 43 4307 438 41 49 45.21

ProJectb.nelliI. 0OOD 2.09 4.17 6 44 6.93 7.43 7.95 8 48 9.0 9 5? 10,13 10.71 11.30 11.91 12.52 13.15 13.79 14.44 1.1 579 646 71 7.0 16 19 37 202 08 2.6ProJeccoSls 9.41 45 2.6 28i8 8 2.80 2.0 .0 28 260 80 .0 20 280 280 280 2 80 2.60 2 80 2.60 2 80 2980 2980 2 80 280 2580 28Caeh flow .14 28 .22 39 34 13 4,63 5.15 5 67 62 6.7 7.33 7.91 80 9.0 9.72 10.35 10.9 1164 123 12 98 13.69 14.38 1509 152_1650 173 199 80

EiRR 10 ___ ssmpton: __

9TC raiol 1.10%) I 0 ____ e9 oeatLow Inraemented cap4eicos?s as compared to 1K ___ 21%INPW iO%l 0 lPhysicaivl eces 1% Cwlgo d"rtedto toad in wihout case by 205 0%- _ ____ .__ - -

Appendlx 2 Table 9. Economic evaluation 2A Project without Can Tho-Ca Mau (USD mln)19 198 1-999 -2000 20 202 203 2004 2005 2006 20i 20 09 2W 2~21 03 2i 06 2~ 2-018 -20W- - 2020 -2F2 202 023 2024

WIIhouIproIeCl 99 -- ------ 200 - --i210 211 2 2 2_0_ 201 -01 2-01 --202 37 32

V.NIlanspW oS1cst 11 92 20 81 23 70 2660o 21161 27.72 28 28 288.4 29 40 29 95 30 50 31 04 31,59 32 12 32656 33 19 33 72 34 25 34.77 35 28 35 79 36,30 3680D 37.30 37280 3 83 92Add _road lrensponl 000 O00 0 00 03I7 1 1.J52 1 95 2 41 28 i 3 37 389 4 42 4.98 5.56 6.16 6,79 7.44 8.11 8 81 9 53 10327 110 11 8 125 15 4.7 12Ma,ntenance diedginip 151 I.Si I5s 151 1 1- I- i I51 151 151 151 51 151St51 ¶51 1-51 151 51 1.51 51 51 151 51 1 51 151 ¶51 1 .51A 1-51 1 51 1.51 1512&M Bge9s. 4ea'ds 020 0.20 0 20 020 0 20 0 20 0 20 0 20 0220 00 020 0 20 -020 -0.20 -020 0.20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0.20 0 20Tolal 19 63 22.52 254?286 29.60 20 55 31 52 32 SI 33251 34 54 35 58 36 64 37.72 38 82 39.93 41.07 42221 43.40 44.59 45.80 47.03 48.29 49.56 5085 52 16 53 '18 54 85 56 22

With projectT.anspo,l coIlS 17.92 1903 2015 21.26 21.61 21 95 22.20 22 64 22898 22.33 237 20 6 24.7 255 2.0 27 68 26.43 26:77 2.2 27.46 78 281 280 2884 298 95

WoAS 8 75 8 75 8 75ReseIIIlrmenl 0 21 2 4236- - _ -

Makinlnance dedg. 05 5 2.25 2 25 2~25 2 25 2 25 2.25 2.25 2 25 2 25 2 25 2 25 2.25 2 25 2 25 2 25 2 25 2 25 2.25 2~25 2.25 2 25 225 2 25 2 2 5 2250&Mlrdgs. avds08 11 1.5 .6 11.16 .16 1.1 1.16 1.16 11i6 1 16 1.16 1. 16 1i.16 .. 1,16 1.16 11i6 1.16 1.16 1.16 1.16 1.16 I 16 -1 16 16 116 1

En,tomrentl4lmagagam 0 04 0 02 0.02 0 02 0.02 0.02 0.02 0,02 002 0.02 0 02 0 02 0 02 0.0? 0.0 0 02 0,02 0.02 0 02 0 02 0 02 0 02 0.02 0 02 0 02 002 002 0 02SluenglherirV VWVS 1 25- - - -

Ph090 1.9 1 32 034 0.34 0.34 0.34 0.341 0 34 034 0 34 0 34 0. 34 0 34 0)34 0 34 0 34 0 34 0 34 0 34 0 34 0.34 0.34 0 34 0 31 0 34 0 34 0 34Tolal 29.06 33,17 34.66 25 02 25.37 25.71 26.06 26.40 26.15 27.09 27.43 27.78 28 12 2847 28 81 29.16 2950o 29.85 30.19 30 53 30 88 31 22 -31.57 319 I-i 32 26 3-2-60 -3285- -j3 22

PrOOlCtbenotlle 0 00 1.28 3.56 5 698628 6.89 7 51 ei1e 8.8? 9,50 10.19 1Q 91 It165 12 40 13.17 1396 14 77 15 60 16.45 17 32 18 20 19.11 0.04 209-9 2-1965 2294 2395 -24968Projeet cosl_t ___ 63 1162 13 00 2 25 2 25 2 25 2 25 2 25 22 2 .25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2.25 2 25 225 2.25 -225 -- 22525 5 225 2-2L5

Ceshilow .~~~~9 63 .98 a 9s 4 4 03 4.64 526 59 . 7 251 7.951 866 9.40, J0.1 109 1.7 12 52 13.35 14.20 15 07 15896 16 86 17.79 18 74 197 2069 21.7 22.73

EIRR 19 11idumloerat ide104 ago1tcl __ ncremented capital vostls OprdI K0

INPWI1O 5 Physical coon9#encws 101A Cargo diverted loroad i khWithOUcaseby201 10%

Appendix 2 T'able 10. Economic evaluation 28 Project without Can Thu-Ca Mau (USD min) I 282-11997 199 99 20 2001 20 2003 20014 2005 2006 2007 20098 2-009 20-10 011 2-012 2013 2014 2-015 20iO16 207 01 21 20-20 20-21 202 223 -202-4

Viihout project ___

twransponl cc 79 08 270 200 2718 2772 228 284 940 295405 1.4 1523183.63319 3.7 2.2 4.7 5.83579 280 0.0 3730 370 88 87 32Add toad tmansporl 0 00 0.00 0 00 0,35 0,72 1.11 1 52 1.95 2 41 2 88 3 37 3689 4 42 4.98a 5 56 6.16 67 7.4 811 6.8 1 -9.53 1027 11.04 118 16 135 147 12Maleiant ere g 151SI 5 51 I 1 51 1.51 I.51 1.51 1 5 1 S 5151 151 1 1.51 1511-' 1.51 1.5 1.511 1.51 1 51 I151 1.51 1.51 1051 1 Si 1- 5i Si 1 A15-10&M Bridges. Nasvads 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0.20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20Total 19 63 22 52 25842 286 29 60 30.55 31 52 32 51 33 51 34 54 35 59 36884 37.72 38 82 39 93 41.07 42 22 43 401 44.591 45 80 47 03 48 29 49.56 50 85 52.16 53 49 _5485 56 22

WVith WirojectTransport costs 17.92 19,03 20,15 21.26 211.61 21.95 22 30 22.64 22.98 23 33 23 67 24.02 24.36 24.71 25.05 25.40 25.74 26 09 26.43 287 26 7.-12 -27.48 27681 .28 15 28 50 -2984 29 19 2953Works 9 62 9 62 9 62Resettlement 0 23 2 67 2.59 __

Ma~t,narrced4e~9~~ ___ 0 75 1,50 2 25 225 2 25 22 22 2 2 2 2 2 225 25 225 2.252222.552222255252222225 225 22 2.25 2.25

0&lM9ridge%. lIs-vaids ____ 0 sa 1.916 9.16 1`16 1.16 1.5 .61.1 6I 1.A6 I.16 1 .16 1.`18 1.16 1.16 1.18 1.18 1.16 1.18 1.18 1.18 _11 1 .15A 1.10 _ 116 1. 16 1.1EnWio.onmenal rr,apagem. 0 04 0 02 0,02 0 02 0.02 0.02 0.02 0.02 0.2 0202 2 0.02 0.02 0 02 -0 02 -0.02 -0.02 0.02 0.02 0 02 0 02 0.02 0.02 0 02 0.02 0 02 0.02 0 02SIr erthenelg iAWS I 25

Ptyicai corit. andies 0 99 1.30 I 43 0,34 0.34 0.34 0.34 024 3403-4 -0.24 -034 0.24 0.34 0.24 0.24 0.34 -0.24 0234 0. 34 0.34 0 34 0 34 0.34 0.34 0.34

Tolat ~~~~~30 05 3340 35.88 25,02 25.37 25.71 26.06 36 40 20 75 27.09 27 43 27.78 28.12 2-847 2&8.8 29.16 29.50 2- 9.8 5 30.1-9 -30.53 30698 -3i22 31 5 3-1 9-1 3 2256 3T200 -32.95 33.2-9

Projeotbesellts 000 1.7J8 3 56 5~69 6.28 6.89 7~51 8.16 8.82 9.50 101 .1 1.5 240 317 396 14.77 15.60 16.45 17.32 18 20 191 2.4 09 2.5 264 35 2.9

Project costs 10 62 12.85 14.22 2,25 2 25 2,25 2,25 2 25 2 25 2.25 2 25 2 25 2 25 2,25 2.25 2.25 2 25 2 25 2.25 2 25 2 25 2 25 2 25 2225 25 2 2 25 2 25Cashftlor 16 -1.0 -10~67 34 03 4864152 9 6.57 7.25 7.951 8,66 9 40 10.15 10.92 -11.71 12.52 13 35 14.20 15 07 1.6 16.86 17.79. 18.74 1971 209 27 27

EIRR 17.8% __ A umlons: ___ - __

VIC ratioC1 i 0%l ___ 17 - c trecat. _ _ High1 ___Imcerrered caprISi costs aSt COMpared to IN10INPW (10%) 32 Physical corgirgencies: 110% ___%argo dNveredto read inwhlhoAcase bv2015 1%__

Appendix 2 Table 11. Economic evaluation 2C Project without Can Tho-Ca Mau (USD mmn) _____

__________________ 1997 1998 1999 200 2001 202 20O00 05 20 200? 2006 2009 2010 2011 2012 2013 2-014 2015 206 21 08 2019 2020 221 20022 2 204WI1lhout p olroI , .--- - - 9 5_ _ _ _ _ _ _ _ _

WW transpoi1costs 17,92 19 52 2`1.11 22.71 233.1 239 245 25 09 25 68 26 26 26905 27.43 292 i 9 S-g11 3-028 3084 319 39 20 30 38 311 344 31 26 62Add roadtranspoil 000 0-00 -6000 063-0 -062 096 2.2 170 -210 -252 29?-i ~4 3 392 -4.43 -496 5.52 -610 -670 -7.33 7 98 8 65 935 10.07 10 82 11 60 1240 1323 14098LAasSai,a*sceedgin I5 St A51 9.51 1.51 1.51 25 St 5A 2.51 515 15t 1 51 15151 1 15 I 1.5 .1.51 - I 1.51 Si 51 11 51 51 .151 1 151 1SI1 1.51 1F -J.51O&M 9idges.N.ada.d 020 0 20 0 20 020 0212 0 20 020 020O 0 20 0 20 0 20 0 20 0 20 0.20 0 20 0.201 0 20 0 20 -020 020 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0.20Total 1963, 21.23 22 83 24 72, 25.64 26 58 27.53 28 50 29.49 30 50 31.52 32 57 336.4 34.72 35.82 365 380 39 25 40.43 41 64 42.86 4410O 45.37 46 65 47 95 49528 50 63 52 00

WItt, Project 2.8 - - - - 23 2 - . __ - .. --T,ansport msts 17 92 t17.89 17 86 1783 18.22 1861 189 9.8 9. 0.6 -20.55 20.94 2132 2-i1.71 232.10 224 28 37 23 65 240D4 24.43 24.82 25.21 25 59 25 99 26 37 26.76 27.15

Wotks a ~75 8.75 8 75Resettlementa 0 21 2.43 2 36MAaWsinamiadcedgrg _0.75 2.50 2 25 2 25 2 25 2 25 2 25 2.25 2.25 2.25 2 2 2-2. 2 2 25 2 25255 -i5 25 -225 225 225 2 2 225 2 25 25 25 22O&M Budges. Nasaids ___ _ _ 0 58 1.16 I.16 116 .1.56 1.16 ii 1.16 1.8 11 1.16r 1.16 1.16 1.16 1.16e 1.16 1. 16 1.16 1.1 1.16 116e 1.16 1.16 1.16 1i6 11i6 1.16En.iovaIlaa 04 02 02 02 02 02 0,02 0.02 002 002 0.02 0 02 0 02 0 02 0.02 002 0.02 0 02 0 02 00 .2 00 .2 02_00 0 0 0St, wnglhsr*s WAINS I 25 ________

Physicl oontr9amsces 0 90 1 19 1 32 03.4 0 34 0 34 0.34 0 34 0.34 0 34 0 34 0 34 0 34 0 34 0)34 0 34 0 34 0.334 4 34 0 34 0 34 03 2 .4 04 02 3Total 29 06 3102 32.37 21.59 21.9 22.37 22.75 23.14 23.53 23.92 24 31 24.70 25.09 25 47 25.96 26.25 26.64 27 03 27.41 27800 2819 285&8 28 97 2935 -297 30-13 -30 52 30 91

Nrsai,adbnefits 000 163 3 26 518B 572 6 26 8 82 7.40 8 01 8863 9 26 9 92 10.60 -11 29 12.01 12.741 1350 14.27 15 07 15.88 16.72 17.57 18 45 19.34 _20 26 -2i.20 _22 16 23 14Prolact calls 9 63 11 62 13 00 2 25 2 25 2 25 2.25 2 25, 2.25, 2 25 2 25 2 25 2 25 2 25 2 25 2.251 2 25 2 25 2.25 2 25 2 25 2 25 2 25 2?25 225 2 25 2 25 2 25Cash lIow -9 63, -10 00, -9 75 2 93 3 46 41 4.57 5.161 5.761 6.381 7.02 -7.67 8 35 9.05 9.76 10.50 11 25 12.03 2282 1363 14.47 15 32 16 20 1 7.09 18.0 .195 191 28

E2RRt 17 5% _ _ Assumptions: - ______ ___..___ . .. ..

BIG ratio IIO%) 1 Cargo forecast. ___ Low ~ lnuamented cap.lal costs as conspwed toA 0% __

INPW10%) 28 _ _Physicalcontlinieo.s: 20% C~arg diverted 1oroadin wflhoucaseab 2015 10% - -- - -

Appendix 2 Trable 12. Economic evaluation 20 Project_without_Can Tho-Ca Mau (USD m I)1997 1998 1999 2000 ~~2001 2002 203 04 05 06 07 -20-08[1200 -2010 -2011 2-012 -20133 2420 015 2-016 -2017 2018 2-019 202 22 202 02 2024

)Srnso Ico$ 1.92 192 2.1 27 33 30 25 59 25 68 28 26 26815 27 43 28 00 2858o 29 15 29 71 30 28 30 84 31.3 31 95 3250 3304 3358 34 11 34 64 35 17 35 69 36 21

Add. road IarsfiSp 0.00 0.000 0 00 0.6O096__2 .7 2.1 2.52 2 ?97 3._~43 392 4 43 4.96 5.52 60 8O670 7 33 7 98 8 65 9 35 10.07 10862 11.60 12 40 _13 23 14 08Mainlenanre dodg.ldng 1 51 15 .1 15 .1151 1.51 .1 51 1.51 I 5I 1.51 1 51 1.51 1 51 1.51 1.551 1 1.151 1 1.151 II f 1 -- 51 1 51 .5 51 I 5-1 I 51'3&M8ridges.Naoa~~~s 020 020 020 020 020 020 020 020 0.20 020 020 020 020 020 020o 020 0200 20 0 2 022002020202002020OT 0 020 020 0 020 020 0020 020

Total 19.8~~~~~M3 21 23 2283 24.72 256.41 26,58 27.53 28.501_39.49 30.50 31 52 32 57 33 64 34.72 35,82 36.95 38 09 39.25 404 41.64 42.66 44.10 45.3 46 65 7.5 49 28 50 63 52 00

Tranlsport osts 17.92 17.89 17,86 17.83 18 22 18 61 18 99 19 38 19.77 20.186 20T51 294 2i1.32 2i1 7-1 -221-0 T224-9 22~88 23.27 23 65 24.04 24.43 24.82 25.21 25669 25~98 2637 20 76 27.15Worxks 9862 9862 9862 - _ _ _ _ _

Ra.se[llrment 0 23 2 C 2 .9. - __- - _______ ______.- __ __ __Malnlananca &W&V ___ 07 1 50 2325 2,25 2 25 2325 2325 2325 2325 2 25 2325 2 25 2.25. 235 2.35 325 2 352 _225 -2.25 2.25- 3262 2.25 2 25 225 -225 3225 2325OSM rde.Nnis- 058e 1.18 1.16 1. 16 1.16 11 I 1.18 1.18 1.16 1 18 1 16 1.16 1 16 1.A6 1.16 1.16 1.16 1.16 1.16 1.1 116 116 6 1 16 1,16 1. 16 1. 16Envwrornental rriegagem. 0.04 0 02 0~02 0.02 0.02 0 02 0.021 0021 0.02 9. 0.0 0 02 0.02 0 02 00202 2V 0,02 0.02 0002 02 0.202 260.2 0 02 002 0 02 0 02 0 02Strnghenig_%VWS 1T 25-

Phys aIr4tgndes 0 99 1.30 1 43 0,34 0.44 0. 034 0 34 0.34 0.34 0.334 043 03 0334 0 4 04 4 0 03 00334 04 04 0 34 0.4 34 34 04 34 .4Total 20 05 32 25 33.60 21.59 21.98 22 37 22.75 23.14 23.53 23 92 24.31- 24.70 25.08 25.47 25,86 26.25 26.64 27.03 27.41 27.80 28.19 28.58 28.97 -29 35 29 74 30,13 -30,52 _30 91

ProjectbeeflrIs 00 6 32 51 5.1 82 6.82 7.40 601 8 63 9 26 9 92 10.60 11.29 1201l 12.74 13 50 14.27 15.07 15.88 16.72 1 7.57 18.45 19 34 20 26 21 20 22.16 23.14Pr-ojec cools 10 621 12851 -14.221 2.25t 2.25 2.25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2.25 2 25 2 25 2 25 2 25 2.25 2.26 2 25 2 25 225 26 22 2Cash now -10862 -11.23 .10.97 2.83 3.46 4 01 4,57 5.18 5.78 8,3$ 7.02 _7.67 8 35 9.05 9 76 1050 11~25 12 03 12~82 13 63 14.47-15 32 16 20 17-09 180 89 81 08

EIRR 16 2% Assurnptions:BMC rti tl00%l . artrca110 inIrCmerlld capilel costs is compae oI 0 __

NP(IO%) 25 Ph sical corll ncie 10%A iCargo dueued to roadinwithiM ease by 205 10% -- - __ ____ __- . .

Appendix 2 Table_13. Economic evaluation 2A Project without Can Tho-Ca Mau (USO mln)~~~~~~~~~1997 1998 1999 2000 -200) 2002 2003 2004 2005 200 2007 2008 2009 2010 2011 2012 2013 20tA4 2015 2016 2017 2018 2019 2020 _2021 2022 2023 2024

Withot prjct___Wvmhansposl costs__ 17 92 20 81 23 70 26 60 27 16 27.72 28 28 20884 29 40 29 95 30 50 31 04 31 59 32.12 32 66 33 19 33 72 34 25 34.77 35 28 35 79 36030 36080 37 30 37680 38628 38 77 39 25

Add ,oadtsansporl 000 000 000 0~~35 0721 1 2 15 24i8 337 _38 44 9 5 56 61i6 6 79 -7 44 81 i 9I.981i 9 53 1027 110~4 1153 1265 1350 14 37 1526Ma~ntenan.ccedgig I) 1.5 1 51 1 51 15 t5 15 1 1St 1 1S t 151 1 I51 I 51 Si 1i 151 15) 51 1 5 -5IS 1 5) IS S) 11 551 151i 151 1.51-5O&M rid91.Aavads 0_~20 0 20 0 20 0 20 02i 0 020 0350 0 20 0 20 0 20 -020 0 20 0 20 020 0 20 0.20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 D20 0 20 020) 0 20 0)20rotal 19 63 22 52 25 42 28 66 29 60 30 55 31 52 32 5t 33651 344 358 36 64 37.72 38.92 39 93 41)07 42 22 43 40 44.59 45980 47 03 4829 49 66 50685 52)16 63.49 54.65 56 22

Wtthp±oj.e 2 193 2.2 - -- __ _ .- __ Imnrsporlcosts 17 9 90 20)15 21.2 161 21 95 22 30 22 64 22.981 23 33 23 67 240.2 :243 24 71 25.05 25.40 25.74 26 08 26 43 26.77 27.12 27.46 27.81 28 15 29 50 28 84 28198 29 53Works 875 a875 87 __ __ S

Resettlement 0 21 2 43 2 30wn1ttenanced,d 0 75 IS 22 25 25 25 .5 25225 225 252225 25 225 25 .25 25 2.2 22525 5 25 2 25 25 26 25 252

OSM Bridges, Navaids ___ 058 1.16 1)6G 1)6 1.116 1.16 1.16 1.16, 1.16 1 16 1.16 1)16 1.16 1.16 1 16 1.16 1.16 1.16, 1.16 1 16 1 16 1)16 1)16 1 16 1 16 1)16fnvars1snltmgges 0 04 0 02 0 02 0 02 0.0 0 02 0.02 0 02 002 0.021 00(2 0 03 0 02 002 0 02 002 002 0 02 0 02 0.021 0.02 0 02 0.02 0 02 0 02 00 0i 02 60-~2

StrengthoningyWVS 1.25~~~~~~~~~~~~~ - - - - - 000 000 - - 000 -00 00 OD 00 00 & 000 000- &Phslr9racntrrgOfcres 000 0 00 000 000 00 0.0000 0.00 0.00 .00oo 000 00 00 00 00 00 00 00 0060 00.0_00 00 00Total 28.16 308 23 46 53 25 37 25.72 26 06 28.40 26 75 27.09 27 44 27.78 281i3 28 47 28 82 29.16 29.50 -29.85 30 19 30 54 30 88 31.23 31)57 -31 92 32.26 32 60 32.95

Prqojclbenefnhs 0 00 1 78 356 5 69 828 8809 7 51 8.1 8sa82. 9 50 10 19 10 9) 1) 65 12 40 i3,17 13 96. 14 77 15 60 16.45 17.32 18 20 18.)) 20.04, 20 99 21 95 -221 4 23 95 24 98Psoject costs 8 74 10 43 11.66 I191 1.91 191 1.91 1 91 1.91 191t 191 t iS 191 11 19 191 1.91 191 1.91 1.91 1.91 1 91 1.91 1.91 1 91 1 91 1 91 1 91 1 91

CashItow -874 -885 ~~~~~-8)3 3 78 47 4 98 5.60 6 25 691l 7~59 8 29 90 7 09 11.26 12 05 12 86 13 69 14 54 15.41 163F72 83 10 00 13 220 20

EIRRl 21 3%6 lAssumptlions:8iC falIll6 (1%j 2 0 __Cargo forecast. High Intmlembled capsiateosts ascrpared to iA 0% _

IN WI10%I 40 hyiaconttvnge ndei 0% Ca idered to road inw,ttl"ouase b 201 5 10% - -…-

Appendix 2 1 able 14. Economic evaluation 2F Project without Can Tho-Ca Mau (USD min)1997 1998 1999 2000o- 2001 -2002 2003 2004 05 20 2-007 2-0-08 2009o 201 I0 2011 2012 203 201 015 2016 -201 7 201 2019 200 2021 2022 2023 22

6VWtansorlcsls 17.92 20 81 23.70 26.43 262 27.19 27.56 271 22 85 89 2.9 2.8 27 00 0 2-6 3-0 49 30.-70 30.O90 31.09 31.26 314 3.5 3.6 317 315 19 3.9Add road trnsnporl 0.00 0.00 0.0 070 1.I44 2 22 3.05 3.91 4 81 5 75 _6.74 7.7 7 _8 84 9 96 11.12 12 33 13.58 14.88 16.22 17 62 19 06 20.55 22.0B 23.67 2 5.31 2699i 29 73 30 52MvA r4ernxe dregn 1.51 1 51 1.51 1.51 1.51 1.51 1 51 1.51 1.51 1.51 1 5I 1.51 1.5-1 -1.51 -1.51 -1.51 1.51 1.51 -1.51 1.51 -1.-- 151 1.5 151 1.5i .51 1.1 5I 1.5 1,513&MBrrdges. Nlvaids 0.20 0 20 0 20 0 20 0 20 -020 -020 0 20 -020 -020 -020 0 20 -020 -020 -020 -0.20 0 20 0 20 0.20 0 20 0 20 0 20 0.20 0 20 0 20 0 20 0 20 0 20

Total ~~~~~~19 63 2252 542 2.4 29 97 31.13 32.32 33.53 347 65 37.35 38 68 -40 04 _41 43 42 85 44.30 45~78 4_7 29 48.84 50 42 52.03 53.67 55.34 57.05 58 79 601,6 -62 37 _64.22

W~ith pr j c _ _ _ _ _ _ _ _ _

Transpo~1cosIs _____ 11.92 9.03 2015212 2.6 21.l9 5 -22. 30 22.64 2298 23 33 23 67 2i402 24136 24.71 25.05 2.0 25.74 26.08 26.43 26.7 7 27.12 27.46 278 2.1 2.5 264 98 2.3Works 8~~~~-.75 8-i75 8.i7-5 __

Resettlement 0,21 2 43 2.36 __

liawrlemancodedgrrg __ -0.75 -1.50 2.2 225 2 25 2.25 225 2 .25 2 25 2 25 2T 2 25 -225 -2 25 22 2.25 225 2-25 2.25 2325 2.25 -225 -225 2 25 -2 25 2 25 -225 22-5 2.25'3&M Bdges. Naards ___ __ 0.58 1 .16 1.16 1.16 1 16 1.16 1.16 1.16 1.A6 1.16 1.16 1.16 t1.16 1.16 1.16 1.16 1.16 1.16 1.16 1.16 1.16 1.16.. 1 16 __I 16 1.16 1.16Envwmervlntalmnagagem 0 04 0O02 0.02 00 002 0 03002 0 .0 002 0.03 0 02 0.02 0,02 0.02 0022 0.02 02 0 02 0 .02 0 .02 0 02 0.02 0 .02 0 02 0 .02 0 02 0-0 --- 02 0 '02 0.0 O-2Slrengthent WWS -1 25 ___

Phys~c mnrr~tc.s 0 901 1.19 1.32 0 34 0.34 0 34 0.34 -034 0.34 0 34 0 34 0 34 0.34 0 34 0 34 0.34 0.34 0.34 0 34 0.34 0.34 0.34 0.334 04 04 6 034O 03 -0.34To-ta l 29 06 32.17 34.66 f 20-2 2-5.37 2j5.71 26.0-6 26.40) 2-6.75 2-7.09 2 7-43 27.78 28 12 28.47 28.81 29.16 29 50 29.85 30 19 3053 30.88 31.22 31.57 31.91 32 26 32 60 32 95 33.29

Proiecttrensllta ~000 1.8 35i57 86 747 83t.8 00 001 1196 12.95 13 96 15.01 18.08 17.19 18.33 19.50 20.70 21.93 23.20 24.49 2.2 719 259 30 346 329Proi.cl costs ~9 63 11 62 13 00 2 225 2 25 2 25 2.25 2 25 2 25 2251 2 25 2 25 2 25 2.25, 2.25, 225 2 26 2.25 2 25 2.25 2.25 2 25 2.29 2 25 2 25 2 25 2 25 2.25

Cash flow *963 985 -9.45 362 ~~~~~4.41 22 6 061 693 78 B 8 .761 971l 10.701 1.71 t12.76 1-3.84 -1-4941 1608 17.251 184-5t 1-9.68t 2-095 -22 24 237 24694 26 33 27.76 29 23 -30.73

EIRR 21.4% _ _ Aasrirrpllons:____ _ _ _ _ _ _ _ __ _ _

BIC ratio ilO%) 2 1 __ Cargo lorecst HIg___ Irmorsented capTdal costs as compated to IA.k 0%NPW j16%j 49 ~~~~~~Physical torrlncieos: 10% __ Cargo dkverled lo road in ilhoxA cats b 010

Appendix 2 Table I5 Economic evaluation 2C (switching values) Project without Can Tho-Ca Mau (USO Mtn) __ __

197 9-98 1999 20600 00 2002 20 204 2005 2006 2D1 2008 2009 2-010 2011 2-012 20io1-3 2014 2015 -2016 -2012 -2i 201 9 20206i -2021i 20i22 2023 22

U' p~~it..-.. - . - . . _ _ _ _ ~ -.-21. _ _ _ i -- T3 - L 1WW6nsp'tcsIs 179 192 2.11 22 8523 60 436 2513 25906 26 68 2746 2826 2028 09 35 24 31 .(3 38 55 36 79 3.8 22 07 '17 4949

a, lean. dWgifl 151 1 I5i5 I5 151 151 1 51 15 1i51 I151 1951 1.51 1 51 151 15Si 1,51 1.51 1 51 1.51 1.51 1~51 1 51 1.51 1 51 I151 1.51 15 151i

O&M8t,dge~.Na~aid~ 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0.20 0 20 0 20 0 20 0 20 0-O20, 020 0 20 0 20 0.20

Total ~~~~~~19 63 _21 23 22803 _2457 25 32 26 07 2-684 27 61 28 39 2918S 29 97 30 17 31.58 32.40 33 22 34.06 34.89 35 74 36 60 37.46 38.33 39.20 40.09 __40 99 -41 6 42.79 43 70 _4 2

1ranspailcosIS 17.92~- 178a9 T7-86 1.3 18 22 186.1 18 99 19 38 19 77 2016 20 55 20 94 21 32 21.71 22.1t0 22 49 22.88 23 27 23 65 24 04 24 43 24 82 25 21 25 59 2.8 23 66 21

WorkS 12 5i 125 12.li51Rss,liItmenl 0 31 3 47 3 37 -. - ____

tAsilena.cde dgi;g 0 75 1.50 235S 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25 2 25

08M Bridges. Naaards ______ ~0 58 16 1 16 11i6 1 16 1.16 1.16 1.16 1 16 I. 16 1.16, 1. 16, 1.16 1.16 1.1i6 1.16 1.16 1.16 1.16 11i6 1.16 1 16 11i6 1.16 1 16 1 16

Emk~omentalrrm;gagem 0 04 0 02 0 02 0 02 0 02 __002 002 0 02 0 02 0 02 0 02 0 02 0 02 0.02 0 02 0 02 0 02 00202 2 02 0 02 0 02 0 02 002 0.02 0062 0 02 0.02

p eaColng#cis 1.92 .1 2 69 0 51 0.51 0.51 0 51 0.51 0 51 0.51 0 51 0.51 0 51 051 0 51 0 51 0.51 0 51 0.51 0 51 0 51 051 05151 1 0-51 -05E1 0951- 0.51

Total 33 94 37.15 3652 21.76. 2215S 22 54 22.93 23 31 23.70 24.09 24 48 24817 25 25 25 64 26 03 26 42 2661i 27.20 21.58 27 97 _2836 _2875 _291i4 _2953 29.91 30230 30 69 31 06

Pro~~eclben.lils 000 163 326 503 539 575 6.13 ~~~~~~651 6.9% 7 30 7.71 8.12 8 55 897? 9 41 9 65 10 31 10 76 11 23 11 70 126 16 37 27 11 47 53 17

Projecl costs 14 51 17.75 _1815 _242 2 42 2 42 2.42 2 42 2 42 2 42 2 42 2 42 2 42 2 42 2.42, 2 42 2.42 2 42 2 42 2.42, 2 42 2.42, 2.42, 2 42 2 42 2 42 2 42 2 42

Cash iow -1451 .1612 .15 90 2 61 2 9? 33.4 3.71 4.10 4 49 4869 5 29 5 11 63 6.I 56 6 99 7.44 7 89 8.35 8613 9 29 9 77 10 26 10 75 11 26 II??7 12 28 12.61 13 34

EIPIt 10 0% __Assurnllrs:__

-iC ralIo llO%) 10i __ Carg4ocak __ _ t linc,.mened capdal css as comrpwardto IA 43%Pww(18%) jOl ) Phys.caI conlioet 1nie 5% .l Cargodiva1dIo,o8dnmiwouIcaseby2015 0

Appendix 2. Table 16: Economic Evaluation Navaids for Night Navigation (USD mmn)

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007_ 200B 2009 2010

COSTS .

Navaids 1,89 1,89

Auxiliaty equipment 0.25

O&M 0,10 . 0,19 0,19 0,19 0,19 0,19 0,19 0,19 0,19 0,19 0,19 0,19

Contingencies 0,04 0,28 0,30 0,03 0,03 0,03 0,03 0,03 0,03 0,03 0,03 0,03 0,03 0,03

TOTAL 0,29 2.17 2,29 0,22 0,22 0,22 0,22 0,22 0,22 0,22 0,22 0,22 0,22 0,22

BFNEFIT 0.00 0,00 0,50 1,04 1,09 1,14 1,18 1,23 1,28 1,33 1,38 1,42 1,47 1,52

CASH FLOW 10.291 l2,171 (1,79) 0,82 0.87 0,92 0,96 1,01 1,06 1,11 1,16 1,20 1,25 1,30

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

COSTS

O&M 0,19 0.19 0,19 0,19 0,19 0,19 0,19 0,19 0,19 0,19 0,19 0,19 0,19 0,19

Contingencies 0,03 0,03 0,03 0,03 0,03 0,03 0,03 0,03 0,03 0,03 0,03 0,03 0,03 0,03

TOTAL 0.22 0,22 0.22 0.22 0.22 0,22 0.22 0,22 0,22 0,22 0,22 0,22 0,22 0,22

BENEFIT 1,57 1,62 1,66 1,71 1,76 1,79 1,82 1,85 1,88 1,90 1,93 1,96 1,9G 1,96

CASH FLOW 1.35 1.40 1,44 1,49 1.54 1,57 1.60 1.63 1,66 1,68 1,71 1,74 1,74 1,74

EIRR 21%

B/C Ratio (10%) 1,86

NPW 110%) 4,55

Cargo Forecast Low

Physical Corrtiregoncies 15o%

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