STUDY ON THE IMPROVEMENT OF WATER SUPPLY AND WASTE WATER TREATMENT IN YANGON, THE REPUBLIC OF THE UNION OF MYANMAR SUMMARY

Transcription

1 Feasibility Study for Promotion of International Infrastructure Projects in FY 2011 STUY ON TH IMPROVMNT OF WTR SUPPLY N WST WTR TRTMNT IN YNGON, TH RPULI OF TH UNION OF MYNMR FINL RPORT SUMMRY November 2012 Prepared for: The Ministry of conomy, Trade and Industry Prepared by: Toyo ngineering orporation

2 (1) ackground of the Projects and their necessity Yangon is now home to 4.7 million people. Y has been facing a range of problems due to financial and technical difficulties stemming from economic sanctions imposed by the United States and the uropean Union including Japan, rapid population growth - such as insufficient capacity of facilities, low water pressure, and high leakage ratio, and delay in provision of a sewerage system and lack of efficient treatment of wastewater that has subsequently caused environmental problems. The purpose of Study on the Improvement of Water Supply and Waste Water Treatment in Yangon produced by the Ministry of conomy and Trade, Japan (MTI), is to carry out a basic investigation that is aimed at grasping the current status of the water supply and sewerage systems, preparing a water supply system improvement plan, and indicating conceptual plan for the sewerage system in future. In addition, we coordinate and decide to focus on high priority projects that are to be implemented on an urgent basis as the countermeasures against the problems and issues we investigate. (2) asic oncept to select and define the projects asic concept to select and define the projects is to utilize the Meetings with Y to confirm the priority projects and priority projects were selected - according to selection criteria - based on the results of the site survey. final selection should be made taking three evaluation items, namely effectiveness, urgency and potentiality, into account. In addition, through the detail investigation of the selected projects, the project scope definition and possibility of Yen redit application will be examined. (3) Project Overview 1) Total Project ost The five prioritized projects selected with Y are as follows, and are able to be provided at a cost of 40 billion JYN. udgetary price estimation for each project is indicated in <.>. Urgent Projects i) and ii) require urgent rehabilitation and reinforcement, and are to be evaluated as a combined one urgent project. i) Renewal of istribution pumps and Rehabilitation of Pump Station in Nyaunghnapin WTP No. 1 ecause of the frequent troubles of the above pumps, existing 4 pumps are to be

3 renewed and pump station is to be rehabilitated including replacement and new-installation of anti-water hammer devices (surge tanks, check valves, etc.), which would be the main cause of pump troubles, and enhancement of pump foundations. ii) Rehabilitation of istribution Network in Yankin Township In the above township, 42 transmission pipeline (installed in 1945) under the high traffic road is to be replaced in 3.7km length as the countermeasure against the frequent bursts and serious leakages. t the same time, the distribution pipeline system is to be rehabilitated, installing the new trunk and distribution mains with flow meters in the course of joint project with Y who renews small diameter distribution pipes in this township. < i) and ii) combined total: 1.55 billion JYN> iii) Rehabilitation of entral <2.6 billion JYN> This distribution reservoir was constructed in 1965 but has not been used because its reservoir had a severe leakage at the water test at its commissioning. This project is to construct a new distribution reservoir (37,000 m 3 ) on the same place as the existing old reservoir utilizing the existing construction frame as much as possible, aiming to realize the stable water supply. iv) leaning of Sewerage Force Main <128 million JYN> This project is to clean the Sewerage Force Main for its life extension using high water pressure cleaning machine, which was installed 120 years ago and still actively in use. v) onstruction of Transmission Pipeline from Ngamoeyeik and ungtagon WTP <35 billion JYN> This project is to install the transmission pipeline (1,600 mm, 42.5 km) from the Ngamoeyeik reservoir located in the north Yangon with pump station and the water treatment plant with 45MG (204,500 m 3 /d) capacity. Since the project i) and ii) above are high priority projects, we also examined the applicability of providing grant aid. Project iii) and v) are examined targeting Yen redit. Since the project iv) should be evaluated with the condition of existing facilities and the future sewerage master plan, it was decided that Y would continue to study based on the case studies provided by Japan Study team. 2) Preliminary Financial and conomical valuation a) Preliminary Financial and conomical evaluation was executed for selected prioritized

4 five projects and they provided the positive results subject to the condition, which is the increasing the water tariff. b) lthough water tariff, regardless general use or commercial use, in Yangon city seems not to be lower than that of surrounding south east sian countries, the increasing of water tariff will be required to realize the projects up to the tariff level for the foreign consumers in Yangon city. c) In case the project i) Renewal of istribution pumps and Rehabilitation of Pump Station in Nyaunghnapin WTP No. 1 and the project ii) Rehabilitation of istribution Network in Yankin Township are combined and applied with the grant aid from Japan, it will be feasible even with the water tariff for general use and 50% of NRW. This is because the investment is only for the renewal of pump station in WTP and rehabilitation of distribution network, neglecting the investment for the existing facilities. d) Project iii) Rehabilitation of entral seems not to result the profit directly, however it will be feasible under the condition of Japanese Yen redit application, with the water tariff for foreign consumers. e) Project v) onstruction of Transmission Pipeline from Ngamoeyeik and ungtagon WTP will be also feasible under the condition of Japanese Yen redit application, with the water tariff for foreign consumers. Following Table shows the summary of Preliminary Financial and conomical valuation Summary of Preliminary Financial and conomical valuation Project Name P Million Yen F-IRR % -IRR % Tariff Yen/m 3 Tariff ategory 1 Renewal of istribution 1, General pumps and Rehabilitation of Pump Station in Nyaunghnapin WTP No. 1 2 Rehabilitation of istribution Network in Yankin Township 3 Rehabilitation of entral 2, General ommercial Foreign 4 leaning of Sewerage Force Main No calculate

5 5 onstruction of Transmission Pipeline from Ngamoeyeik and ungtagon WTP 35, Foreign Source: Study Team 3) Social and nvironmental nalysis The nvironmental Law was established in pril s defined in the law, MOF is governing the environmental administration instead of the function of respective organization in the past. nvironmental standard, effluent standard and I are now under preparation. In the selected five projects, i) to iv) are focusing on recovery of original functions, and, as a result, we do not envision any serious environmental issues other than the affects to the surrounding people during the construction.. In order to reduce the impacts during the construction, we have introduced the popular practices as the appropriate measures. Regarding project v) the new installation for a transmission pipeline and WTP, we have discussed the social and environmental impact with a counterpart in Y, and explained to Y that I would be required to be executed by Y when the location of transmission pipelines and WTP location would be decided by the project planning. (4) Project xecution Schedule For the two urgent projects, i) and ii), Y wants to improve the level of services as early as possible, and in order to help facilitate this, we have been examining the possibility of applying for Japanese grant aid so that project design can start in 2013 and field construction can be completed within approximately one year by the middle of 2015.

6 Project Title Project stage ontents ) Renewal of istribution Pumps and rehabilitation of pump station in Nyaunghnapin WTP Receipt of requests etail esign onstruction Works asic esign xamination of ids / xchange of Notes / Grant aid contract etail design / Tender evaluation Selection of contractor Procurement onstruction works Unit trial operation / Transfer 2) Rehabilitation of istribution Network in Yankin T/S Receipt of requests etail esign onstruction Works asic esign xamination of ids / xchange of Notes / Grant aid contract etail design / Tender evaluation Selection of contractor Procurement onstruction works Flow examination / Transfer For project iii) will have one year construction period, while the large sized project v) will take three years construction period considering its construction volume. Regarding project iv), in case that the high pressure water cleaning would be selected in the examination, Y will execute the cleaning in one year with Japanese cleaning equipment supply and technical supervisory support. Start dates of these three projects are unknown; the project schedule is indicated only by the duration of each activity. Project type Project Title 1 year 2 years 3 years 4 years 5 years 6 years ) Rehabilitation of entral Rapid improvement projects 4) leaning of Sewerage Force Main Major project 5) onstruction of Transmission Pipeline from Ngamoeyeik and ungtagon WTP : xamination of ids / xchange of Notes / Loan agreement, : Tender valuation / Selection of contractor, : asic esign, : etail esign, : onstruction Works (5) Feasibility for Yen redit requirement and execution For Myanmar, Yen credit cannot be re-started before the issue of delinquent debt is settled. The Japanese government is now working hard to restart the Yen redit facility in early We should continue to carry out discussions with Y while observing the government's actions

7 in regard to the above activities. i) Renewal of istribution pumps and Rehabilitation of Pump Station in Nyaunghnapin WTP No. 1. ii) Rehabilitation of istribution Network in Yankin Township Since the above two projects are the measures against the frequent troubles in the water facilities, urgent realization methodology is required which should be earlier than the application of Yen redit. So in the course of investigation and study, we have contacted Ministry of Foreign ffairs of Japan and JI and discussed about the possibility of Grant id application. In addition, we had the meetings, explained and suggested the necessary procedures and steps with the Yangon Region hief Minister, Yangon city Mayor, and also with the upper level entral Government, Minister of National Planning conomic evelopment. t present, application of Japanese Grant id is under examination and study. There would be high possibility for Grant id application to the above projects. iii) Rehabilitation of entral In order to make this project effective, not only the reconstruction, but we should define the function of this reservoir from the viewpoint of the water distribution planning based on the long-term population and demand forecast, because the original central reservoir has not been used over 45 years after construction in 1965 and there has been no experience to distribute water through this reservoir.. Therefore, study would be continued in The Project for the Improvement of Water Supply, Sewerage and rainage System in Yangon ity by JI as the part of Water and Waste Water Master Planning to define the project specification as Yen redit Project. There would be high possibility to apply this project to Yen redit. iv) leaning of Sewerage Force Main lthough Y strongly requested Japan Team this project, the risk to destroy 120 years old facility by the high pressure cleaning water, and the possibility to reconstruct after the cleaning because of the sewerage system capacity shortage should be considered. Japan Study Team executed four case studies. Study result would be further discussed with Y through The Project for the Improvement of Water Supply, Sewerage and rainage System in Yangon ity by JI and examined including Go or Not Go. v) onstruction of Transmission Pipeline from Ngamoeyeik and ungtagon WTP This project was requested by Y as the high priority project to increase the supply water amount. We have conducted the facility design study for the project

8 and also the pipeline route survey, however, the demand forecasting based on the Yangon ity development master plan would be required. s the high priority project to be applied to Yen redit, it would be continued to study further by the team for The Project for the Improvement of Water Supply, Sewerage and rainage System in Yangon ity by JI. There would be high possibility to apply this project to Yen redit. (6) Technical ompetitiveness of Japanese ompanies Japanese water service-related companies have world-leading technologies which enable them to supply highly reliable and high quality materials and equipment to realize and support the world top level service provision by municipality. On the other hand, however, such a high level of service in Japan is not demanded outside Japan. In particular in emerging countries, What are demanded are not high quality and high price Japanese products but other countries lower-priced products. Under those circumstances, the products of Japanese water service-related companies are not in the competitive position in the global market in general. It would be important to build a specific business model for exporting a package type infrastructure system which can improve the operations and the service levels of the counterparts through cooperation between municipal water departments with maintenance and management know-how and private enterprise, (7) Practical schedule up to project completion, and associated risks For the two urgent projects, i) and ii), Y wants to improve the level of services as early as possible, and in order to help facilitate this, we have been examining the possibility of applying for Japanese grant aid so that project design can start in However, in addition, it will be desirable to start the project construction starts in November or ecember 2013 which is 6 month earlier than the original plan, beginning of dry season in Myanmar, with accelerating the intermediate procedures..

9 Project Title Project stage ontents ) Renewal of istribution Pumps and rehabilitation of pump station in Nyaunghnapin WTP Receipt of requests etail esign onstruction Works asic esign xamination of ids / xchange of Notes / Grant aid contract etail design / Tender evaluation Selection of contractor Procurement onstruction works Unit trial operation / Transfer 2) Rehabilitation of istribution Network in Yankin T/S Receipt of requests etail esign onstruction Works asic esign xamination of ids / xchange of Notes / Grant aid contract etail design / Tender evaluation Selection of contractor Procurement onstruction works Flow examination / Transfer Project iii) and v) are the large sized major projects and should be well coordinated with the master development plan of water facility in Yangon city. Regarding project iv), in case that the high pressure water cleaning would be selected in the examination considering the future development plan of sewerage system in Yangon city, Y will execute the cleaning in one year with Japanese cleaning equipment supply and technical supervisory support. he Japanese government is now working to restart the Yen redit facility, and the start dates of these three projects are unknown, the project schedule is indicated only by the duration of each activity. Project type Project Title 1 year 2 years 3 years 4 years 5 years 6 years ) Rehabilitation of entral Rapid improvement projects 4) leaning of Sewerage Force Main Major project 5) onstruction of Transmission Pipeline from Ngamoeyeik and ungtagon WTP : xamination of ids / xchange of Notes / Loan agreement, : Tender valuation / Selection of contractor, : asic esign, : etail esign, : onstruction Works The largest risk for the project implementation would be the time to realize the project. Surrounding countries of Myanmar, especially hina, Thailand, India and Korea will approach

10 Myanmar quickly. Including investigation of the financial support from Japan, we should not stick to the past or existing procedures and steps, but should realize the quick decision making to compete against the rivals, and should accelerate not only the study but also Project xecution for Myanmar. (8) Map showing the project site in Yangon city We have attached a map showing the location of five prioritized projects in Yangon city. Locations of priority Projects Whole Yangon city Gyobyu Ngamoeyeik Phugyi (5) Ngamoeyeik Transmission Pipeline Yangon city center Yegu P/S (1) Nyaunghnapin WTP Rehabilitation of transmission pump Inya lake (2) Yankin T/S Replacement of old exisitng pipe network Hlaing River Hlawga (5) ungtagon P/S New construction of WTP Kokkine Thephyu WTP Hlawga No.1&2 P/S (3) entral Re-construction Shwedagon reservoir (4) Sewerage network Renewal and washing South agon No.1 WTP Yegu P/S South agon No.2 WTP ago River Source: Study Team