Mid-Term Review

JBIC ODA Loan Project Mid-Term Review 2006
Evaluator: Yasuhisa Kuroda (OPMAC)
Time of Mid-Term Review Field Survey: March 2007
Project Title: Vietnam “Bai Chay Bridge Construction Project” (L/A No. VNIX-1)[Loan Outline]
Loan Amount / Contract Approved Amount / Disbursed Amount: 6,804 million yen / 6,508 million yen /6,012 million yen (as of March 2007)
Loan Agreement: July 2001 (5 years after L/A signing)
Project Completion Date: December 2006
Loan Expiry Date: May 2008
Executing Agency: Ministry of Transport, Project Management Unit No. 18
Operation and Maintenance Agency: Bai Chay Bridge and Ferry Management Company, Government of Quang Ninh Province
Selection Criteria for Mid-Term Review: Special Yen loan
[Project Objective]
The objective of this project is to build a 25.3 meter wide, 903 meter long 4-lane PC cable stayed bridge over Cua Luc Strait and an approach road in the city of Ha Long,
Quang Ninh Province, 160 km east of Hanoi, the capital of Vietnam. The bridge and the approach road will make freight and passenger transport on the National Highway No.
18 smoother and more efficient, thereby contributing to the social and economic development of the region.
Consultant: J/V comprised of Japan Bridge & Structure Institute, Inc.; Pacific Consultant International; Hyder Consulting-CDC, Ltd. (Britain) – Transport Engineering
Design Incorporation (Belgium); (employment is based on L/A No. VNV-6: National Highway No. 18 Improvement Project I)
Contractor: J/V comprised of SHIMIZU CORPORATION and SUMITOMO MITSUI CONSTRUCTION CO., LTD.
[Mid-Term Review Result]
Item

Ex-ante Evaluation (at the time of appraisal)(January,2001)

1

Result of mid-term review and ex-post evaluation results asestimated at the time of mid-term review

Mid-Term Review

Relevance(1) National policy level(1) National policy level
In Vietnam, the road sector plays an important role in domestic freightand passenger transport. Road transport accounts for 65% of total
freight and 81% of total passenger transport (as of 1999). The road
sector is given a high priority in the “National Traffic Development
Master Plan (which was adopted in the “Strategic Survey of theDevelopment of Vietnamese National Transport and Traffic” conducted
by JICA in July 2000). Additionally, in the Public Investment Plan
(1996–2000), the estimated amount earmarked for the transport sector
accounts for one fourth of the total. The largest portion of the transport
sector investment was allotted to the road sector.

(1) National policy level
On the national policy level, the transport sector has continued to be
regarded as an important sector. It was confirmed that 27% of thestate budget was invested in the transport and communication sector
during the five years from 2000–2005. Continuing to cite
infrastructure investment as a priority item on the national policy
level, the “Five-Year Social and Economic Development Plan
(2006–2010), points out specifically that efforts will be focused on
the development of transport infrastructure. In the area of roads, thePlan cites as priority items (i) the provision and expansion of anational highway network, and (ii) the provision of a transport systemin the priority region for economic development. In the long-term
development plan, important national projects are cited in the
appendix table as “important projects,” and this project is listed in thesection for ODA target projects. Thus, their importance as national
projects is confirmed.

(2) Policy level(2) Policy level
The road system in Vietnam covers a wide range of areas and its roaddensity compares favorably with that found in other ASEAN member
nations. However, the aging of the road system, due to inadequate
maintenance, is becoming very serious. However, traffic volume
centering on the main roads is increasing sharply. Also, the bridges are
deteriorating so fast that many are forced to set limits on the volume oftraffic that is allowed to cross them. Moreover, there are many points
along the main national highways where vehicles have to be ferriedacross rivers. Consequently, bridge construction has become an urgent
task.

(2) Policy level
In the transport sector, in response to the Five-Year Social andEconomic Development Plan (2006–2010), in August 2005, theMinistry of Transport formulated the “Five-Year Transport Sector
Development Plan (2006–2010)” and began implementing the Plan.
The Plan specifically calls for the provision of National Highway No.
18 and the completion of the Bai Chay Bridge.
From the viewpoint of regional development, the Five-Year Socialand Economic Development Plan (2006–2010) designated the Red
River delta region that includes Quang Ninh Province as a priority
target for development and adopted the policy of focusing on
industrial and tourism development. On the industrial development
front, the Plan cited the development and promotion of the area along
National Highway Nos. 18, 5, 1 and 10 as well as the development2

Mid-Term Review

and promotion of the industrial area on Van Don Island. On the
tourism development front, the Plan called for the development andpromotion of tourist sites including those in Ha Long and Cat Ba.
The importance of the project continued to be confirmed for both
sector and regional developments.
(3) Planning level(3) Planning level
The triangle zone encompassing Hanoi, Hai Phong and Ha Long
(Quang Ninh Providence) is regarded by the Government of Vietnam asa priority area for development, and the National Highway No. 18, amajor artery in northeastern Vietnam, is an important traffic artery inthe triangle zone. Since there is no bridge over Cua Luc Strait (an inlet
to the Bai Chay Bay), freight and passenger traffic resort to theferryboat service. Ever expanding traffic volume in recent years,
however, is pushing the transportation capacity of ferry traffic to its
limit, thus causing impediments to efficient transport on National
Highway No. 18. In addition, expansion of Cai Lan Port inside Cua Luc
Bay is expected to increase the number of large-size ships passing
through the Strait. The large-size ship route cuts across that offerryboats, so there is a need to eliminate the threat to maritime safety
such crossing poses. This danger must be eliminated. The
Government of Vietnam therefore regards the present project as a toppriority project.

(3) Planning level
Accompanying the regional economic development, traffic volume
on National Highway No. 18 has increased, and so has the ferry
service across the Cua Luc Strait. In 2006, ferryboats crossed thestrait 719 times per day, thus pushing the transportation capacity of
the ferries to its limit. Since there is so much traffic congestion at
ferry terminals and the number of trucks – the linchpin of freight
distribution – that each ferryboat can carry is limited, the length oftime spent waiting for the next ferryboat has become extremely long,thus causing impediments to efficient transport on the National
Highway No. 18. The need to construct a bridge over Cua Luc Strait
for regional economic development was therefore recognized.
Since Cua Luc Strait is situated in the buffer zone of Ha Long Bay, aWorld Natural Heritage site, the government of Quang Ninh Province
implemented a basic policy of balancing industrial development withthe preservation of natural resources.
In Cua Luc Strait, there are many marine disasters caused bycongested ferry traffic. Thus improving the safety of vessels passing
through the strait was confirmed as another important task of thepresent project
Under this project, JBIC provided Special Yen Loans. In a bid to help
the early recovery of Asian economies hit hard by the economiccrisis, the Special Yen Loan was established in December 1998, andits primary purposes included promoting projects that are highly3Mid-Term Review

effective in boosting the economy and increasing employment,
creating an attractive business environment for private investment,
and implementing economic structural reforms by improving
productivity. Special Yen Loans are extended under moreconcessional conditions than ordinary loans to support the interested
states.
Under the Bai Chay Bridge Construction Project, a bridge will be
constructed over Cua Luc Strait (an inlet to the Bai Chay Bay) thatnow forms a traffic bottleneck on the National Highway No. 18, amajor artery in northern Vietnam. The project is expected tocontribute to more efficient freight distribution in this region byreplacing the existing ferryboat transportation, thereby upgrading theinvestment environment in the northern part of the country. Becauseof its high level of necessity and urgency and high degree ofmaturation, the provision of the Special Yen Loan deserves theearliest possible implementation.
Effectiveness (Impact)(1) Operation andeffect indicators(1) Operation and effect indicators(a) Quantitative effects
1) Traffic volume on Bai Chay Bridge(1) Operation and effect indicators(a) Quantitative effects1)Traffic volume on Bai Chay Bridge
2000 Actual(At the time of
ex-anteevaluation)

Traffic volume(vehicle/day)Transport time saving(¥1000 /year*1)
Cost in terms of
AASHO benchmark
cost-benefit ratio (%)*2

2005
Estimate

2020
Target11,19577,07964,422

693,067

16.1

173.3

Note: *1. It is estimated that the transit time will be reduced by 25
4

Traffic volume(vehicle/day) *1
Transport time saving(1000 yen /year)
Cost in terms of AASHO
benchmark cost-benefit
ratio (%)

Estimate for2007 (at thetime ofmid-term
review)2010 Target

2020 Target

10,373 *2

14,696 *3

36,485 *4*5*5Notes *1 Two-wheel vehicles, excluding bicycleMid-Term Review

minutes due to the project implementation.
*2. AASHO: American Association of State Highway Officials
Source: JBIC domestic record*2 The traffic volume over a 3-month period from January to
March 2007 has been multiplied by four and then converted
to per day traffic volume.
*3 The average annual rate of increase for 2007-2010 calculatingback from the traffic volume was 12.3%.
*4 Calculating back from the traffic volume, the average annual
rate of increase from 2010–2020 was 9.5%.
*5 There are no performance data available.
Source: Department of Transport, Quang Ninh Province
In the mid-term review, it was already confirmed right after the Bai
Chay Bridge was open to traffic that the actual volume of vehiculartraffic would be double the available ferry transportation service. In
Quang Ninh Province, although the average actual volume of traffic
recorded from January to March was adopted as the traffic volume for
2007, generally speaking, after a road or a bridge is open to traffic,
accompanying the spread of traffic information, for a while there will bea spike in traffic volume. Consequently, it can be assumed that theactual annual traffic volume will exceed the Quang Ninh provincial
government’s projection. As a matter of fact, a look at the actual
monthly traffic volume after the road and the bridge were open to traffic
reveals that while, in February 2007, it increased by 5% over theprevious month, in March, it jumped by 11% over the previous month,thus corroborating the impression of rapid increase in traffic volume(8% on average).
The average annual rates of increase in traffic projected by Quang
Ninh Providence for 2007–2010 and 2010–2020 were 12.3% and 9.5%,
respectively, which are more conservative than the growth rate of theregional economy. Since the size of traffic volume affects the scale ofthe fare receipt and the scale of the state coffer payment, it is essentialthat projections of traffic volume be appropriate. In Vietnam, in keeping5Mid-Term Review

with the rise in the level of income, motorization is expected toprogress, and during a period of economic growth, it is generally
assumed that the rise in the amount of traffic will be about the same as
the growth rate of the regional economy in question. Thus it isdetermined that the aforementioned traffic volume projected by Quang
Ninh Province needs to be revised.
A review of the traffic volume projection by the evaluator of the
mid-term review was attempted (during the period from April 2007 toJune 2007, that is, six months after the Bai Chay Bridge was open to
traffic, traffic volume was hypothesized to have increased every monthover the previous month by 8%, and by taking into consideration theregional GDP growth rate (from 2006 to 2010) that will be discussed in3), the subsequent rate of increase was hypothesized to have increased
annually by 13%). Based on that projection, it was concluded that thetraffic volume would be 13,414 vehicles/day in 2007, 20,829
vehicles/day in 2010, and 70,708 vehicles/day in 2020. It was
confirmed that the projection for 2020 would reach a level near that of
the original plan.
2) Ferry service and traffic volume across Cua Luc Strait
2002

2003

2004

2005

2006
*1

2007
（Esti
mate）

Actual ferry service（per day）
Total number ofvehicles transported(per day)
Number of ferry
accidents (per year)
Number of ferry
accident victims (per
year)

464

521

592

648

719

０

2,342

3,070

3,968

4,540

4,870

０

0

0

1

1

2

０

0

0

0

0

3

０

Note *1 Actual performance from January to November
6Mid-Term Review

Source: Department of Transport, Quang Ninh Province
Just prior to the opening of the Bai Chay Bridge to traffic on December
2, 2006, ferry service was provided around the clock with, on average,
30 crossings per hour, with the total number of vehicles transported
increasing to double the scale of 2002. Although ferry service continues
to be provided on a small scale even after the Bai Chay Bridge wasopen to traffic in December 2006, the service was terminated for goodon March 15, 2007. As a result, accidents associated with the ferry
service were completely eliminated.
3) Long-term Social and Economic Development Plan Set up by Quang
Ninh Province
2005(Actual)Population
growth(annual average %)rate

Averageannualregional
GDP*1 growth rate (1994
fixed cost)

1,070
thousandpeople6,229 Bill.
VND

2006–2010
Averageannualgrowth rate
1.00%

2010–2020
Averageannualgrowth rate
0.95%

13%

14.2%

Note *1 In Vietnam, each ministry drafts a plan for economic growthrate, compiles statistical data for the plan, and announces it. (Decision
No. 305/2005/QD-TTg of Prime Minister dated Nov. 24, 2005)
Source: Department of Planning & Investment, Quang Ninh Province,“Master Plan for Socio-Economic Development of Quang Ninh
Province up to 2010 and orientation to 2020”
Quang Ninh Province, which forms one part of an economic triangle
encompassing Hanoi, Hai Phong and Quang Ninh, is one of the priority
development regions of Vietnam. In the Quang Ninh Long-Term Socialand Economic Development Plan, the average regional GDP growthrate is set at 13% for 2006–2010 and 14.2% for 2010–2020. These highgrowth rates should be fully taken into consideration when projecting
7

Mid-Term Review

traffic volume on the Bai Chay Bridge.
(b) Qualitative effects
1) Distribution of goods in the northeastern economic zone encompassing
Hanoi, Hai Phong and Ha Long (Quang Ninh Province) will be
streamlined.
2) Safety of navigation of large vessels through the Cua Luc Strait will beenhanced.

(2) Factors which may
influence theeffectiveness andimpact(2) Factors which may influence the effectiveness and impact(a) Environmental consideration
Since the project is being implemented in the buffer zone of the World
Natural Heritage Site in Ha Long Bay, an environmental measuresprogram, which includes landscape protection measures through partial
afforestation of the approach section, will be implemented.
8(b) Qualitative effects
1) Streamlining of the distribution of goods
In the northeastern economic zone, the average annual growth rate inproduction volume in manufacturing from 2000-2005 (1994 fixed price)
was 18.3% in Hanoi City, 17.2% in Hai Phong City, and 14.9% in
Quang Ninh Province. High growth rates are shown in these areas
compared to the national average (16.0%). Streamlining of distributionof goods is indispensable to support such high growth rates. Thus it isrecognized that the provision of Japanese ODA Loan for the
infrastructure development of National Highways No. 5, No. 10, No. 18
and No. 1 (bridge is the target of support), Binh Bridge, Hai Phong Port,
Cai Lan Port, etc. has contributed significantly to these high growth
rates (World Bank, “Impact Assessment of Large Scale Transport
Infrastructure in North Vietnam,” 2004). The location of Bai Chay
Bridge allows it to maintain a close link with these infrastructurebuilding projects. It is recognized that these infrastructure building
projects are contributing to streamlining of the distribution of goods in
an integrated manner.
2) Safety of the navigation of large vessels through the Cua Luc StraightAs pointed out in (a) – paragraph 2), the ferry service was completely
halted on March 15, 2007. The possibility of marine accidents occurringat the intersection of large vessel routes and ferry routes has beeneffectively eliminated.
(2) Factors which may influence the effectiveness and impact(a) Environmental consideration
As for the environment, prior to the project implementation, theEnvironmental Impact Assessment (EIA) was conducted, and in
response to UNESCO comments, measures for dealing with

Mid-Term Review

environmental issues were formulated on the basis of the EIA. The
executing agency installed environmental monitoring units andimplemented measures for conserving the environment based on the
results of the EIA. The agency monitored the effects of those measuresduring the construction period. Thanks to these efforts, no particular
problem has arisen. In order to compensate for the area that will be
logged under the project, mangroves were planted in an area equivalent
to or larger than the area in Cua Luc Bay that was logged, and at thesame time, mangroves were also planted in the main bridge pier section.
While the planting of the mangroves in the approach road section was
delayed, it is recognized that sufficient consideration was taken to
implement the environmental measures. It is desirable in the future toascertain what percentage of the mangrove forest planted actually tookroot.
In addition, since the site of the project is located in the buffer zoneof a World Heritage, there was concern that the project might be a bloton the landscape. Consequently, prior to the start of construction,montage photos of the bridge were prepared and made public, andinterested parties were asked to voice their views.
(b) Land acquisition and resident relocation
Area of land acquisition: 60,080 m2
Resident relocation: about 170 households
Resident relocation of will be implemented in accordance with Vietnam’s
domestic law (Decree 22/1998/ND-CP). An agreement has already beenreached between JBIC and the executing agency stipulating thecompletion of land acquisition and resident relocation as a prerequisite forallowing companies to take part in the bidding for this project.

9(b) Land acquisition and resident relocation
There were 478 households that were directly impacted by the project,
162 of which were targeted for relocation (Note: total number from
BC-1 to BC-3). Resident relocation and land acquisition werecompleted before the bidding, as planned. No particular problem arose,
but it is desirable that the post-relocation livelihood situation of the
inhabitants be ascertained. The inhabitants who were targeted forrelocation were given land in a zone within the city of Ha Long called
Yet Kieu some 1.5 km from the existing residential area. Quang Ninh
Province developed this zone and provided on average 67.5 square
meters of land per household.

Mid-Term Review(c) Social consideration
1) Provision of bus services is being planned to enable local residents,
who now use ferry boats, to cross the river.
2) As an employment measure, those now working at the ferry service
company that will cease to operate when this project is completed will be
asked to work in the operation and maintenance of the Bai Chay Bridge.

Note: The Bai Chay Bridge Construction Project was implemented by
dividing the project site into three construction zoneｓ: BC-1, BC-2, andBC-3. Of the three construction zones, BC-2 was targeted for theJapanese ODA Loan Bai Chay Bridge Construction Project (VNIX-1),
the other two zones were being implemented by the Japanese ODA
Loan National Highway No. 18 Improvement Project I (VNV-6) and II(VNVII-6).
(c) Social consideration
1) Accompanying the opening of the Bai Chay Bridge to traffic, tworoutes operated by a bus company under the umbrella of the provincial
government (BC-1 – Cam Pha Section: bus service provided 8 times a
day on average; and BC-3-Hoang Bo Section, bus service provided 7
rdtimes a day on average) are added. A bus service on the 3 route(between Ha Long-Uong Bi) is scheduled to be added soon.
2) In February 2005, the ferry service company was renamed to the
Quang Ninh Bridge & Ferry Management Company. As a measure forhiring employees, JBIC obtained government approval for undertaking
the management as well as the operation and maintenance of the Bai
Chay Bridge, and of the 373 employees, 226 were assigned as personnel
required for the management as well as operation and maintenance ofthe renamed company.
(d) Slope protection of approach road
With regard to the approach road and related access roads of the Bay
Chay Bridge being built under the National Highway No. 18
Improvement Project (I) (II), the construction schedule was delayed
due to various factors, including the increase in earthwork volume.
Since April 2007, the executing agency has been implementing
engineering works on slope protection of roads for promoting

10Mid-Term Review

environmental conservation. The said works both in BC-1 and BC-3
zones are slated to be completed by September 2007.
(e) Intersection of Loang Thong
In the completed zone of the approach bridge on the Hongai side (at theend of the zone driving non-stop after going through the tollgate
installed at BC-1), there is a point where Provincial Road Nos. 336 and337 cross (the Loang Thong intersection); a stoplight is provided at theintersection.. This zone slopes downward, so it is easy for vehicles
running in this zone to accelerate, which has prompted people to pointout the risk of accidents occurring in this zone. Appropriate measures
should be taken to manage the stoplight and methods for paving theslope zone so that it will be more difficult to accelerate should be
devised.
(f) Road maintenance and improvement up to Moncai, located east of
Cua Ong (on the Chinese border)
Implementation of the National Highway No.18 Improvement Project ishalted at Cua Ong, 38 km east of Hong Hai. The building of theapproximately 130 km of road that runs east from Cua Ong to Mong
Cai (on the Chinese border) is critically important for economic growthof the region. The construction of this road will further increase theeffectiveness of the Bay Chay Bridge. Additionally, it is said that many
entrepreneurs in Moncai hail from Hai Phong, and in the past,
ferryboats were widely used to venture forth from Moncai. In the future,
however, it is assumed that the mode of transport will shift to roadtransport. From this, it can also be assumed that the Bai Chay Bridge
will function effectively for the economic development of this region.
(g) Van Don Island district development
Van Don Island, located in the eastern part of Quang Ninh Province, has
11Mid-Term Review

a lush natural environment, and is designated as an area to be
development. The provincial government is promoting a development
plan that embraces both manufacturing and tourism. The developmentof this district will enhance the effectiveness of the Bai Chay Bridge.
(h) Promotion of industrial park areas
There are a host of industrial park areas in the province of Quang Ninh,
including Cai Lan, Cam Pha, Viet Hung, Hai Yen, Dong Mai, Chao
Khe, Mong Cai, Kim Sen, Ohuong Nam, Tien Yen, Ninh Duoung, andUong Bi. The provincial government is promoting the development ofthese industrial park areas. With the promotion of these industrial park
areas, the effectiveness of the Bai Chay Bridge will be enhanced thatmuch more.

(3) Factors which may
influence thesustainability(3) Factors which may influence the sustainability(a) Operation and maintenance system
After the project is completed, the Vietnam Road Administration of the
Ministry of Transport will execute the operation, maintenance andmanagement of the project. A Regional Road Administration Unit is set
up in the VRA for each target area. The 2nd Regional Road Administration
Unit, which has jurisdiction over the northern area of Vietnam, is
12(i) Development of tourism in Ha Long Bay
Today, tourism in Ha Long Bay is moving toward the island of Cat Baon the western side of the bay. The oddly-shaped rock outcroppings,
which have been declared a World Natural Heritage Site, have spread
not only to the western part of the bay but also to the eastern part aswell. Although the eastern part of the bay has not been included among
the tourism development targets, in the future, when tourism
development is implemented in the eastern part of the bay, the Bai Chay
Bridge will play a major role as a passage connecting the eastern part ofthe bridge to the western part. Consequently, the heightening of its
effectiveness can be envisioned.
(3) Factors which may influence the sustainability(a) Operation and maintenance system
The operation and maintenance system is under the jurisdiction of theVietnam Road Administration of the Ministry of Transport. In responseto the request from the provincial government of Quang Ninh, theMid-Term Review[[Efficiency](1) Outputs

scheduled to be put in charge of the present project.

Ministry of Transport commissioned Quang Ninh Bridge & Ferry
Management Company, which was created by reorganizing Ferry
Service Company, to take charge of the operation and maintenance of
the Bai Chay Bridge (Ministry of Transport
Decision No.
2366/QD-SGTVT dated November 28, 2006). Under the consignment
contract, the contractor of this project will direct the operation andmanagement of the Bai Chay Bridge and the approach road. Quang
Ninh Bridge & Ferry Management Company will request the central
government (via the Vietnam Road Administration of the Ministry ofTransport) through the provincial government of Quang Ninh to provide
the budget necessary for the operation and maintenance of the project.
After receiving the budget request, the Ministry of Finance will allocate
the amount requested from the government budget to the province of
Quang Ninh. The operation and maintenance budget is set pursuant tothe standard established by the government, and a specific amount isallocated in accordance with the specifications of roads and bridges andthe distance involved. It is important that an adequate budget be secured
for operation and maintenance. The toll for crossing bridges is set basedon the toll system set up by the government in accordance with thespecifications of the nation’s bridges targeted by the government(Ministry of Finance Notification No.90/2004/TT-BTC dated
September 7, 2004). Some (20%) of the toll collected may be reserved
to cover the cost of operation and maintenance and to fund technicalinnovations in operation and maintenance, but most of it is stored in thestate coffers.

(1) Outputs
A main bridge (including 1 approach bridge) will be constructed over Cua
Luc Strait and an approach road (including 8 approach bridges) will bebuilt linking the bridge to National High No. 18. However, the Japanese
ODA Loan targeted by the project “Bai Chay Bridge Construction(1) Outputs
The main bridge section (including 1 approach bridge) was built
according to the same specifications and type as in the original plan. As
for the approach road section, except for the change in the number ofbridges to 4 bridges on the Bai Chay side, the approach road was13Mid-Term Review

Project” (VNIX-1) applies to only the main bridge section. The approach constructed in accordance with the same specifications and type as inroad section and the consulting service are covered by the Japanese ODA the original plan.
Loan “National Highway No. 18 Improvement Project (I)(II)” (VNV-6,
VNVII-6), which is not targeted in this mid-term review.
Main bridge section (dealt with in the present project)
Main bridge

ApproachbridgeSpecification item
Total length
Number of lanes
Total width
Navigation ceiling
Type
Total length
Number of lanes
Total width
TypeSpecification
903 m
4 lanes (2 lanes on each side)
25.3 m50 m
PC cable stayed bridge
99 m
4 lanes (2 lanes on each side)）
23 m
PC box girder bridge

Approach road section (dealt with in VNV-6, VNVII-6)
Specification item
Total length Bai Chayside
Hongai side
Lane

Width

Specification
3,292 m (including 5 bridges))
4,594 m (including 3 bridges)
4 lanes (2 lanes on each side)
But there are 2 lanes for the access roads (1 laneon each side)
29 m (but access road is 9m)(2) Project period
July 2001 – December 2006 (65 months) (completed)
The delay was not caused by the project (the main bridge section).
Rather it was in the approach road section, which is not targeted in thepresent medium review.

(2) Project period(2)

Project period
July 2001 – October 2006 (63 months)[Results of Special Yen

The significance of the Special Yen Loan at the time it was provided
14(1) Objective of the introduction

Mid-Term Review

Loan
Survey]Satisfaction

under the present project is as follows:
The Vietnamese economy was hit hard by the Asian economic crisis.
While it maintained a growth rate of 8–9% over the several years prior tothe crisis, the high pace of growth began showing signs of slowing down,with the growth rate dipping to 4.8% in 1999. While the Vietnamese
economy is seen to have strong potential, its economic foundation
continues to be fragile in comparison with other ASEAN member
countries. Considering, among other things, the urgent need forinfrastructure building and the fear that the slowdown in economic growth
will strengthen the voice of those critical of the government’s Doi Moi(renovation) policy, thereby forcing the government to rollback on its
commitment to make the transition to a market economy, it is essentialthat the Government of Japan continue its support for Vietnam.
(a) Degree of maturation
The project has already won the approval of F/S and EIA, and D/D is
now in the preparation stage.
(b) Provision of a project that has pump priming effect and can attract
private investments
In addition to solving the traffic bottleneck on the National Highway
No. 18, by bringing about safe passage for large-scale ships that use
Cai Lang Bay, the project will prove extremely effective for
improving both land and sea transport. In particular, the project willcontribute significantly to the industrial development of the entire
northern region of Vietnam for the following reasons: (i) coal andsteel related industries have been flourishing in the areas along the
National Highway No. 18 for sometime; (ii) cement, steel, flour
milling and other factories are being built; and (iii) in addition toremaining the Vietnam’s production center of rice, the region has atourism development plan centering on Ha Long Bay.
15

The reasons the Ministry of Finance gives for adopting the project
include low interest rates, long payment period, and sophisticatedtechnology. By contrast, the executing agency has cited as reasons highquality, prompt project implementation, and advanced technology.
(2) Competition and procurement
Five companies participated in P/Q; all passed. Four of the five took
part in the bidding. Regarding comments made concerning thequalifications required for subcontracting and countries eligible for
procurement, the executing agency said: “The regulations regarding theSpecial Yen Loan made it difficult to implement the project.
Specifically, due to regulations regarding primary subcontractors, wewere unable to hire highly capable companies from a third country toserve as our primary subcontractors. Consequently, we had to settle forless competent Vietnamese companies. Due to regulations regarding
countries eligible for procurement, we were unable to procure necessary
equipment, materials and services because we could not get a wide
range of countries participate in the bidding. As a result, we weredenied an opportunity to reduce cost.” One of the consultantscommented thus: “The definition of “domestic procurement” isambiguous, and although each piece of equipment and material to be
procured has to be examined and its suitability adjudicated, there weremany instances where it was difficult to judge the quality and suitabilityof each item to be procured, and so we had to ask JBIC to adjudicate. It
is desirable that appropriate rules and regulations for operating the
procurement system be established so we can make certain all persons
concerned are fully aware of these rules and regulations.” One of thecontractors explained the difficulties he had by citing a concrete
example: “At present, contractors make procurements globally, so thateven in the case of articles to be procured, there are large numbers ofarticles that are produced through a process of division of labor

Mid-Term Review(c) Reflection of Japan’s knowhow and technological prowess as well
procurement from Japan
The project involves the building of a one-sided suspension PC cablestayed bridge, the executing of which requires highly sophisticatedtechnology. As such, the project allows Japan to fully capitalize on its
proven know-how and technical expertise in the filed of bridgebuilding. Also, the entire procurement from Japan of the equipment,materials and services required for the construction of the main bridge
is expected to cost more than 50 percent of the total Japanese ODA
Loan that will be provided by the project. Consequently, there isplenty of room for private Japanese companies to contribute to thisproject.

involving a multitude of companies. As a result, it is difficult to identify
their countries of origin.”(3) Competence of primary subcontractors
Under the Special Yen Loan system, primary sub-contracts are bilateraland untied. Five companies were selected as primary subcontractors tohandle the building structures. Vietnamese companies were assigned tobuild the parts other than the foundation section of the bridge. The
primary subcontractors were selected from among Vietnam’s leading
companies. However, the executing agency, the contractors and theconsultants all indicated in their comments that Vietnamese workers
were so weak in practical skills that a lot of effort and time had to be
spent guiding and supervising them. Consequently, the contractors had
to mobilize a lot of Japanese technical experts to manage them at thesite (at peak time, about 15, which is equivalent to 1/4 of the staff
working in the work office). Comments from both the contractors andthe consultants confirm the fact that, by and large, primary
subcontractors in Vietnam are cash-strapped, which made it hard tomobilize enough workers for the project.
(4) Project cost
· By adopting a one-sided stay in suspension, the project succeeded inminimizing the foundation work, the infusion of equipment andmaterials, and the work load. The cost was kept lower than in building a
two-sided stay in suspension bridges like the Bing Bridge and the Can
Tho Bridge. Since a one-sided stay in suspension bridge demands ahigher level of expertise than does a two-sided stay in suspension
bridge, it can be concluded that the content of the project was suitable
for the Special Yen Loan.
· According to the executing agency, the contractors’ contract price waswell within the budget, as the government approved 93% of the budget.

16

Mid-Term Review

The executing agency considers this ratio to be the norm in Vietnam.
(5) Technical capacity and quality
The cable stayed bridge with a 435-m span was completed, making it
the longest such bridge in Vietnam, and as a one-sided stay in cablesuspension bridge, it is the world’s biggest. Cutting-edge technologies
were applied to build the bridge. The deep pneumatic caisson
construction method adopted for the foundation section was the firsttime this method was used in Vietnam. With regard to the project
carried out in Ha Long Bay, since there were many stakeholders
including UNESCO, in responding to their demands, the executing
agency was compelled to adopt technically challenging methods ofbridge construction. For example, the one-sided stay in suspension was
adopted as a construction method to reduce the impact the proposed
bridge would have on the view of the bay. Also, a construction methodof installing the bridge support on land is one way to avoid impacting
the tide.
(6) The executing agency’s evaluation of the contractors
Regarding the performance of the contractors, on a scale of 1 to 5, theexecuting agency gave the contractors the highest mark of “Fully
satisfied” on all five evaluation items – 1) Handling of the process, 2)
Quality of execution, 3) Project management, 4) Quality ofdeliverables, and 5) Technology transfer. The project executed with theSpecial Yen Loan received the highest evaluation.
Lessons learned andRecommendations[Lessons learned]
・ The construction work done under the project was completed as scheduled. The fact that land acquisition by the provincial government wentsmoothly is the biggest reason why the project was completed on schedule. The success of this project confirms the importance of implementing– before the project was executed – a land acquisition plan designed to prevent anything from hindering the construction process.
・ As an employment strategy for employees of the ferry service, the ferry service company was reorganized into a bridge operation andmaintenance company, which then reassigned 60 percent of the workers to take part in the operation and maintenance of this project. This
proved effective as an employment strategy, and thus set a positive precedence for similar projects.
17Mid-Term Review

・ By adopting the one-sided stay in suspension as its construction method, which requires a high level of technical expertise, the foundation workand the infusion of materials and equipment were both reduced, thus making it possible to implement the project at a cost less than what it would
have cost had a two-sided stay in suspension method been used. The project is therefore a good example of an appropriate selection of
construction method, and as such, worth referencing.
[Recommendations]・ Slope protection work for the approach and access roads was delayed, so there is concern that there will be sediment discharge during the rainyseason, etc. It is recommended that the slope protection work be completed as quickly as possible and necessary steps be taken to protect against
sediment discharge.
・ The Loang Thong intersection at the end of the approach road on the Hongai side is located at the end of the downward slope of the approachroad. It has been pointed out that the downward slope may cause traffic accidents. It is hoped that appropriate measures will be taken to prevent
accidents including properly managing the traffic signals, paving the approach road, etc.
・ The implementation of the National Highway No. 18 Project is today stalled in Cua Ong, which is located 38 kilometers east of Hongai.
Development of the regional economy requires construction of a road extending east from Cua Ong to Mong Cai (at the Chinese border). By
constructing a road extending east from Cua Ong, the effectiveness of the Bai Chay Bridge will be enhanced that much more. As a concretemeasure to heighten the objectives of the project, the improvement and maintenance of that part of National Highway No. 18 extending eastward
from Cua Ong should be promoted.
・ In monitoring and evaluating the effects of the project, of the contents agreed upon as operation indicators and effect indicators, considering theobjective of the project and the actual condition at the site, the contents of the said effect indicators should be thoroughly reviewed as shown in
the next item.
Indicators set for use at
the time of ex-post
evaluation

In the ex-ante evaluation, it is agreed that the following operation
indicators and effectiveness indicators be monitored.
Operation
indicator
Effectindicator

Indicator
Average annual
traffic volume
Reduction of
traveling cost
Traveling timesaving

Unit
Veh./day¥1000/
year¥1000/
year

Reduction of
traffic accidents¥1000/

Cost-benefit ratio
based on AASHO
standards％

year

Application
Traffic volume at certain
places and times
Reduction of traveling cost
realized by the project
Travelingtime
savingrealized by the project
Reduction of traffic accidents
realized by the project
Cost-benefit ratio

18(1) Monitoring situation
Monitoring of the indicators is to be implemented by the Quang Ninh
Bridge and Ferry Management Company – which carries out theoperation and maintenance of the project – under the direction of theVietnam Road Administration. At present, the former follows the
directions of the Vietnam Road Administration, and every monthmeasures the traffic volume. The measurement results of the operation
indicators (the traffic volume) are reported to the Road Administration
every month. However, with regard to the indicators cited in the “effectindicators,” the Road Administration has not issued any clear directions.
Consequently, in the mid-term review, there were indicators that were
not measured or deemed too difficult to measure.

Mid-Term Review
Improvement of
comfort ofpassersby
Reduction of
freight damage andpacking cost¥1000/
year¥1000/
year

Improvement of driver andpassenger comfort realized by
the project
Reduction of freight damage
and packing cost realized by
the project

Source: JBIC domestic record

19(2) Issues inherent in implementing the monitoring issues
It is acknowledged that in continuously measuring the indicators
included in the “effect indicators,” there are 1) indicators that are, forpractical reasons, difficult to monitor; and 2) indicators whose
effectiveness in evaluating the project is questioned. With regard to theeffect indicators, it is proposed that appropriate indicators be provided
for evaluating the project. Specifically, from the six items cited as effectindicators, the last three – “cost-benefit ratio based on AASHO
standard,” “improvement of comfort of passersby,” and “reduction of
freight damage and packing cost” – should be deleted. Of the remaining
three, the measurement unit should be changed for both “reduction of
traveling cost” and “traveling time saving” should be changed. The
former to VND./vehicle and Billion VND/year (weighted cumulative
amount based on traffic volume), while the latter should be changed tomin./vehicle and hrs/year (weighted cumulative hours based on traffic
volume). However, with regard to traveling cost and traveling time, since
the baseline data have not been established, considering the changes inthe situation since then, evaluation of the effects brought about by the
implementation of the project should be sought with the data at the timeof F/S as the baseline. In addition, since the growth in the number oftraffic accidents has now become a serious issue in Vietnam, it isimportant to monitor the situation that results in traffic accidents and use
the results of the monitoring to formulate and implement
countermeasures for traffic accidents that will be effective well into the
future.