Nghiên cứu một số tiêu chí kỹ thuật đối với tuyến đường bộ đang khai thác khi đề xuất thực hiện bảo trì theo hình thức hợp tác công tư PPP ở việt nam tt tiếng anh

MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF TRANSPORT AND COMMUNICATIONS

PHAM VAN TOAN

RESEARCH SOME TECHNICAL CRITERIA FOR THE
ROUTINE ROAD IS EXPLOSION WHEN PROPOSING
THE MAINTENANCE PERFORMANCE UNDER THE
FORM PPP IN VIETNAM

Industry: Traffic construction engineering
Code: 9580205

SUMMARY OF THE THESIS AND TECHNICAL COMMENT

Ha Noi - 2019


Project is completed at:
University of transport and communications

Instructor :
Prof. Dr. Pham Huy Khang
Prof. Dr. Nguyen Xuan Dao

Reviewer 1:
Reviewer 2:
Reviewer 3:

The dissertation is protected before the grassroots thesis
review council meets at the University of Transport and

Communications at
on
, 2019.

Can find project at:


1
INTRODUCE
1. Reason to choose the topic
Road traffic is an important driving force that promotes the socioeconomic development of the country. Therefore, in any country, road
traffic is always given priority for development and long-term
development orientation. Vietnam is at an early stage of industrialization
and modernization. In this period, the demand for investment in
construction and maintenance of road traffic infrastructure system is an
urgent issue.
In order to minimize the burden of the state budget, finding a project
investment model to maintain the existing road routes in accordance with
the conditions of Vietnam is a necessary, highly practical.
In order to study the appropriate investment model, the evaluation of
technical indicators for the currently exploited road when moving to a
new investment model is an essential job which not only has economic
significance but also brings proper investment efficiency and bring deep
scientific, practical and social significance.
Therefore, the topic "Researching some technical criteria for the
road being exploited when proposing maintenance in the form of PPP
public partnership in Vietnam" is necessary, with scientific
significance. and practicality in the field of research in our country today.
2. Research purposes
- Research on PPP public investment investment form when maintaining for

existing roads, the ability to apply in Vietnam conditions.
- Proposing a number of technical criteria to assess the roads being exploited
as a basis for implementing PPP investment plans.
- Solutions for economic and financial analysis and socio-economic analysis
when implementing maintenance of roads in the form of PPP.
3. Subjects and scope of research
Research subjects:
Three basic technical criteria for assessing the route being exploited
when proposing to switch to the form of investment in maintaining PPP
public relations as follows:
1) Traffic indicators of actual vehicles being exploited by the route.


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2) Condition of ground and pavement condition of the road being
exploited;
3) Traffic safety indicator of the road being exploited.
Scope of research: on the national highway system being exploited.
4. Research Methodology
The dissertation uses theoretical research methods, proposed analytical
and assessment methods.
5. Scientific and practical significance of the thesis
Scientific significance: The research results of the thesis are the
contents included in the assessment of the quality of exploitation of the
current roads, thereby proposing technical criteria for the roads being
exploited for implementation. PPP maintenance investment model on the
basis of quantifying investment value and exploitation efficiency.
Practical significance: Maintenance investment in the form of PPP for
operating roads brings great economic efficiency in the situation of
investment budget capital for implementation of maintenance projects

remains difficult.
6. Structure of the thesis
In addition to the introduction and conclusion, the list of references,
the content of the thesis structure consists of 4 chapters:
Chapter 1: Overview of road transport and maintenance works under PPP.
Chapter 2: The study proposes the technical criteria of the road being
exploited when performing maintenance in the form of PPP.
Chapter 3: Economic - financial analysis and socio-economic analysis
of road maintenance projects invested in the form of PPP.
Chapter 4: Applying the proposed technical criteria in the thesis when
performing maintenance of a proposed route in the form of PPP.
7. New contributions of the thesis
Currently, in the standards, design and exploitation of the road in use,
there is a lack of specific instructions on the capacity of traveling, the
service level and the criteria of ground and road structure for the roads
being declared. waterfall; Therefore, PhD students use in specific
conditions of each road section to study the actual effects of geometric
elements of the road such as lane width, road width ... and traffic factors


3
such as ratio of occupied trucks, buses in the vehicle line, intersection
factors, traffic density etc. Based on the study of the above issues in depth,
detailed in chapter 2 of the thesis. The PhD student proposes three
technical criteria for assessing the routes in operation when proposing
maintenance in the form of PPP in a scientific, specific and meaningful
manner in the analysis of Economics - Finance. and Socio-Economic
analysis for each road section when performing maintenance in the form
of PPP.
In addition, in parallel with the determination of technical criteria to

serve as a basis for the screening of proposed routes to implement
maintenance in the form of PPP, the Fellows also study and propose the
contribution ratio. Investor's capital and the ratio of State capital
contribution (repayment of capital to investors from annual road
maintenance fund) in investment in maintenance of currently exploited.
CHAPTER 1
OVERVIEW OF INVESTMENT OF TRAFFIC WORKS UNDER
PPP AND MAINTENANCE PPP ROADING EXPLOSION
Research on investment in maintenance of roads under exploitation in
the form of PPP partnership is considered an effective solution to improve
capital from the Maintenance Fund and limit and optimize investment
efficiency; At the same time, providing high quality public services to
benefit the state and the people.
1.1. Basic concepts and characteristics of PPP investment forms
1.1.1. Basics of public-private partnerships
The term "public-private partnership" describes a range of possible
relationships between public institutions and private organizations related
to infrastructure as well as sectors. other services.
The advantage of PPP investment is the allocation of risks to partners
who are able to solve that risk in the best way and thus minimize costs and
improve operational efficiency.
1.1.2. Types of PPP models in practice
PPP models allocate responsibilities and risks between public and


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private partners in different ways depending on the nature of the project,
the agreement contract structure is used for projects such as: Build- andTransfer (BT): Build-Lease-and-Transfer (BLT); Build-Operate-andTransfer (BOT); Build-Own-Operate-and-Transfer (BOOT); Build-Ownand-Operate (BOO); Build-Operate-Share-Transfer (BOST); Build-OwnOperate-Share-Transfer (BOOST) is a contract signed between a state
agency and an investor.
1.2. The situation of PPP investment in the transport industry in the world

Learn PPP investment model in the transport sector in general and PPP
investment in specific road maintenance projects in the world through
general surveys in some countries such as the United Kingdom and
Australia, Japan ...; Results achieved in some countries above.
1.3. Invest PPP in transport in Vietnam
1.3.1. PPP model applied in Vietnam
PPP investment model started to be applied in Vietnam from 1994 to
present, mainly implemented in the form of BOT, BT and BOO investment in
infrastructure, transportation, electricity and telecommunications. Especially
in the transport sector in the past time, PPP model has been implementing a
number of investment projects on construction of road traffic infrastructure;
1.3.2. Current situation of capital sources and investment needs in the
transport sector.
Summarize the current situation of investment capital for the transport
sector in the structure of investment capital sources of the state budget as well
as the support and loan capital sources from abroad.
On the basis of capital sources and industry development orientation in the
period of 2016-2020 and looking forward to 2030 to meet the country's
economic development conditions, the transportation and construction
investment needs are very big; Some specific objectives include: By 2020,
there are over 2,000km of expressways; completed over 600km of Ho Chi
Minh road; The average speed of North-South trains is 80-90km / h for
passenger trains and 50-60km / h for cargo ships; bringing the total capacity
of airports to about 100 million passengers / year; The total capacity of


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seaports reaches about 800 million tons / year by 2020;
Investment capital of the Transportation sector is about VND 1,015 billion
(about USD 48 billion) of which more than VND 300,000 billion (USD 14

billion) will be mobilized from non-budget sources.
1.3.3. PPP investment in traffic and some achievements.
Some of the achievements from attracting PPP investment in the
transport sector in recent years have brought about development in the
transport sector in particular, creating conditions for the socio-economic
development in difficult conditions. state budget.
Statistics of some real projects have been implemented in the past time.
1.4. PPP investment in road maintenance in Vietnam
1.4.1 Current situation of network, capital and road maintenance needs.
- Current situation of road network in our country in terms of:
+ Length and scale of the route:


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+ Status of road surface:

+ About geographic and regional distribution: The road network is
distributed reasonably, the average density is 0.85 km / km2 and 3.21 km /
1,000 people. For the national highway system alone, the density reaches 0.051
km / km2, in which the Red River Delta region has the highest density of 0.099
km / km2, the Central region is 0.068 km / km2; The Central Highlands is the
region with the lowest density of 0.0374 km / km2.
+ Some results and comparison of some technical indicators compared
with other countries in the world:
About length and road density


7

Road network structure

8
About capacity of road exploitation

Regarding the structure of maintenance capital and construction
investment

Some indicators of traffic safety


9
Summary and analysis of capital for road maintenance:
+ Before the establishment of a road maintenance fund (in the 19972012 period): the capital source allocated by the state budget is around
VND 500 billion - VND 2,700 billion each year for the entire
maintenance of national highways, including the work regular
maintenance, periodic repair work, flood and natural disasters, and traffic
safety as well as other tasks ...; There are no central budget allocations for
maintenance of local roads.
+ Since the road maintenance fund has been put into operation since
2013, the expenditure for national highway maintenance has increased
significantly; The average growth rate is 25.89% / year, of which 35% of
the Fund's revenue is reserved for local road maintenance.
- Current situation to meet capital needs: Although the State and the
Transport sector in the past period are very interested in road maintenance
work to ensure the exploitation of the road system effectively, safely and
smoothly; However, compared to the road maintenance norms and
procedures issued by the Ministry of Transport, that capital source can
only meet about 25-30% of the minimum maintenance needs for
management and maintenance.

- Maintenance needs: The capital demand for investment in
maintenance of large road infrastructure is very low; Particularly for
maintenance, it is only about 20% of demand, this is the biggest challenge
for the road industry. Therefore, in the coming time, it is necessary to
continue mobilizing all resources, creating all conditions and advantages
to attract domestic and foreign investment capital, from various economic
sectors, in various forms to stimulate demand from the source of road
maintenance funds to the roads under operation.
1.4.2. Evaluation of maintenance investment in the form of PPP in
Vietnam and issues raised
- Investment in maintenance in the form of PPP in Vietnam
+ Up to the present time, investment in maintenance of roads under
exploitation in the form of PPP has not been implemented in Vietnam;


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Before the actual situation and capital investment needs to implement road
maintenance, the call for capital mobilization outside the budget and
maintenance fund is a practical and necessary need to prolong the quality.
, life expectancy and service level of the road transport system.
+ The call for investment maintenance in the form of PPP has been
proposed by the specialized agencies of the Ministry of Transport and
Vietnam Road Administration in the report summarizing the evaluation of
the implementation of maintenance in the past few years. However, the
research to apply has not been conducted specific analysis and evaluation.
- Some differences between PPP maintenance and new construction
roads.
- New issues when proposing maintenance PPP road under operation:
+ Optimal mobilization in using investment capital:
+ Limit risks to the private sector; at the same time, improving the

responsibility between the State and the private sector:
+ When applying PPP maintenance investment method is a clear
regulation in the legal corridor.
+ Allowing investors to mobilize capital from economic sectors.
1.4.3. Current legal regulations for implementing PPP maintenance
The legal framework for implementing PPP model has not been
expressed through a specific law, but only in the decree, but must still
depend on other laws such as Enterprise Law, Bidding Law and
Investment Law. public, Land Law ... and other sub-law documents. Many
contents of laws, decrees and guiding documents are overlapping and
contradictory. When PPP investment is currently only expressed in the
form of a decree and under the influence of other laws and documents
through the revision and supplementation of regular decrees, it leads to an
unattractive situation. Foreign investors, many domestic investors are also
concerned about the stability of the policy.
1.4.4. Objectives and contents of road maintenance investment in the
form of PPP
Some goals and contents of road maintenance investment in PPP form


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are as follows:
- Develop development orientation
- Promoting the efficiency of road exploitation
- Maintenance plan for PPP road in operation
- Improving conditions of rural traffic exploitation
- Improving the efficiency of investment capital, creating a
breakthrough in the maintenance of road PPPs being exploited
- Management work on maintenance of PPP roads under operation
- Improve the quality of transport services; prevent, repel accidents and

traffic jams
Conclusion chapter 1
1. Based on the research from the basic concepts and characteristics of
the form of investment in developing road transport infrastructure in the
form of PPP public cooperation, the author has analyzed the problems of
the beginning. investment in road transport in the world and Vietnam; In
particular, it has deeply researched and analyzed a number of key issues
and a number of existing problems in investment in maintenance of onroad road PPPs in the world and Vietnam.
2. Through an overview of investment projects in the form of PPP, the
dissertation author has commented that projects in countries around the
world and in Vietnam are studied normally for a specific project. with the
requirement of detailed analysis and calculation of Economic - Technical
indicators for each project. These criteria are determined depending on the
documentation of vehicle traffic, the capacity of the road, the quality of
exploitation of the ground, the road surface, the level of traffic safety and
traffic accidents. basis for assessing the feasibility of a road maintenance
project under PPP.
With the above problem set analyzed, the author of the thesis has chosen
the thesis topic "Researching some technical criteria for the road route
being exploited when proposing maintenance in the form of PPP in
Vietnam".


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CHAPTER 2
STUDY OF TECHNICAL RECOMMENDATIONS OF THE ROAD
IS EXPLOSION WHEN IMPLEMENTING MAINTENANCE
UNDER THE PPP FORM
2.1. The technical criteria of the road being exploited in general and
when implementing the road maintenance project in the form of PPP

The technical criteria for assessing the quality of the road being
exploited are the following evaluation criteria:
- Criteria for evaluation of road surfaces;
- Criteria for evaluating roadbeds;
- Criteria for evaluating works on the route;
- Criteria for operation and exploitation;
- Criteria for driving conditions and traffic safety;
Therefore, the evaluation of technical indicators for a line in operation
to prepare for maintenance in the form of PPP is a necessary job which is
not only economically meaningful but also effective in working. proper
maintenance; At the same time, bring deep social meaning.
Through practical issues mentioned above, the determination of
technical criteria to evaluate and propose investment in the form of PPP is
a core issue so the thesis proposed 03 technical criteria version to evaluate
the currently operating route when proposing maintenance under PPP
public-private partnership as follows:
1) Criteria for capacity to travel and service level in service.
2) Criteria for quality of ground, road surface are being exploited.
3) Traffic safety criteria are being exploited.
2.2. Criteria for capacity to travel and service level of the service in
operation
2.2.1. Definition of travel capacity and service level of the road being
exploited
- Highway Capacity: Fellows conduct research on the concept of
traveling capacity according to the current regulations in Vietnam
(According to TCVN 4054: 2005; according to QCVN-4: 2016 / BXD and
according to TCXDVN 104: 2007) and refer to the definition of "Highway


13

Capacity Manual".
- Level of service (Level of serice - LOS): according to regulations and
documents in Vietnam, the concept of service level of the road is not
mentioned yet so the PhD student studies the concept of "level of service
case "according to 1994 AASHTO, AASHTO 2012 and HCM.
A good level of service is called a factor using a capacity to travel: a
measure of the operating quality of a traffic flow, which a driver and
passenger are aware of.
* Service level is divided into 6 different levels, denoted by A, B, C,
D, E, F. At level A - the best service quality and the F level - the poorest
service quality.
2.2.2. The need to assess the capacity of travel and service level when
proposing road maintenance in the form of PPP.
- Roads are being exploited, depending on the function of the route, the
type of road, the design criteria, the service level regulations are A, B, C,
D, E or F. Over time due to storage the number of vehicles increased,
thus, the criteria for traveling capacity and the level of service change;
therefore, it is necessary to identify these indicators as a basis for proper
maintenance plans.
- Currently, in the standards, design and exploitation of the road in use,
there is a lack of specific instructions on the capacity of service and the
level of service for the routes being used in the specific conditions of each
section. The research path has a practical effect on the geometric elements
of the road such as lane width, road width ... and traffic factors such as the
proportion of trucks occupied, buses in the vehicle line, the elements of
buttons traffic, traffic density etc. In the dissertation, the PhD student has
studied in depth the above issues.
2.2.3. How to determine the capacity for travel
Research and calculate the capacity of traveling on 03 aspects:
1) Maximum travel capacity: introduction and guidance for calculation

according to the formulas of the former Soviet Union, the US, France and
according to Vietnamese regulations


14
2) Computing capacity: introduce formula of calculation, interpretation
and application in Vietnam conditions with reference to the conditions of
service of the route.
3) Actual travel capacity takes into account the specific conditions of
geometric factors, vehicle flow factors, truck components and buses, which
account for a proportion of traffic.
Determination analysis The necessity to determine actual travel capacity
in road maintenance projects through which the calculation of Highway
Capacity Manual (HCM) is conducted.
- Passage capacity and service level of branch roads and branch lines.
- Determine for two-lane car routes
- Travel capacity and service level at traffic lights with signal lights
2.3. Criteria for quality of ground and road surfaces are being
exploited for road maintenance
2.3.1. Quality of exploitation of the ground and the road surface
The current quality of the route depends on the quality of the road
surface and the road base from the viewpoint of the pavement structure as
a general structure, not only the surface and foundation but also the
ground and the road surface.
Therefore, in the process of exploiting the pavement structure, the load
capacity will gradually decrease under the effect of vehicle load and
natural factors, then including the pavement structure will be reduced in
intensity and level. service leads to failure. Therefore, it is necessary to
develop methods to assess the intensity of the ground, road surface, and
the remaining life of the structure for maintenance work. The content of

this chapter focuses on analyzing methods of analyzing and assessing the
situation of ground surface exploitation in the world and in Vietnam to
propose the most appropriate method suitable to the conditions of
Vietnam.
2.3.2 Definition of the life of soft pavement structure.
An overview of road life, traditionally, is defined based solely on the
structural status and functional condition of the road surface. During that
period of time the structural and functional status of the pavement is believed
to be able to be maintained within the specified limits corresponding to


15
specific field conditions and assuming regular maintenance and preventive
maintenance. Properly done.
There are many definitions of longevity and life span of soft pavement
structures. The definitions of the life expectancy and life expectancy of the
soft road structure are as follows:
- Life span of pavement structure
According to the transport terminology of the 2009 AASHTO (The 2009
AASHTO Transportation Glossary) there are definitions of life span and
service life of the pavement structure analyzed in detail in the thesis.
The remaining life of the pavement structure
The remaining life of Remaining service life (RSL) is the remaining time
that a new pavement structure is constructed or maintained for the first time
before it can reach the end service capacity. Its the same, or reaches the status
of need to perform major maintenance. Figure 2.8 and Figure 2.9 describe the
definition of the remaining life of the road surface according to IRI and PCI
criteria.
2.3.3. Assessing the condition of road surface for maintenance work
In the routine maintenance technical standards for road TCCS 07-2013,

it is recommended to use the PCI road surface indicator and evaluate the
road surface condition according to ASTM: D6433-07 by gradual
deduction. However, the PCI index only assesses the condition of the road
surface but has not considered the remaining intensity of the structure, this
issue needs additional research of the thesis.

Figure 2.19 is a diagram to assess the condition of the road surface
from the type of failure, the extent and the amount of damage.


16
- Using the results of the FWD test assesses the remaining life of the
soft pavement structure
- Determine the elastic modulus of the roadbed
- Evaluate the condition of pavement structure
- Determination of CF conditions
- Determine the remaining life of the road surface
- Proposing methods of using structural status index (SCI) to
determine the remaining life, selecting soft road maintenance measures.
2.4. Evaluate conditions that affect driving safety
In order to assess the conditions affecting the safety of the Fellows,
research on the following aspects:
- Overview
- Flow factor and vehicle components
- The number of lanes and the separation of cars in opposite directions
in each direction
- The width of the vehicle component
- Vision distance factor
- Vertical slope factor
- Curvature radius on the map

Conclusion chapter 2
1. To make a plan to invest in maintenance projects on the road being
exploited in the form of PPP public partnership, the thesis proposes to
implement:
a. Determining the traveling capacity and service level of the currently
exploited route:
- For the roads being exploited to ensure the criteria: A-level free flow,
very high speed, the coefficient of using Z <0.35; The B-line level is not
completely free, high speed, the coefficient of using Z = 0.35 - 0.50 and
C-line is stable but the driver is affected when he wants to freely choose
the desired speed , coefficient of using self -studying skills = 0.50 - 0.75.
For these routes, it is necessary to ensure that the index should carry out
normal exploitation (no PPP maintenance priority plan).
- For the roads under exploitation, there are criteria: the D-line level
begins to be unstable, the driver has little freedom in choosing the speed
and coefficient of using Z = 0.75 - 0.90 ; E-line level is unstable, working


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line is in a limited state, any obstacle causes vehicle congestion,
coefficient of using self -studying skills = 0.90 - 1.00 and F level - the line
is completely unstable , the traffic jam occurs. Then prioritize and
implement maintenance plan in PPP form.
b. Determining the criteria of the quality of the ground and the
pavement of the lines under operation, in particular: flatness, surface
damage, structural strength and road surface roughness to provide
appropriate maintenance solutions and promote mining efficiency.
c. Determining conditions affecting vehicle safety from determining
the geometric elements of the road such as the width of the lane, the
coefficient affected by the number of lanes and the width of the road;

Traffic elements such as trucks occupy, buses in the vehicle line, elements
of intersections and traffic accident levels.
2. Introduced the calculation formulas and examples of calculation
and analysis of the capacity of travel, service level, criteria of ground
structure, road surface and traffic safety in exploitation for Proposed
routes perform maintenance in the form of PPP.
CHAPTER 3
FINANCIAL ECONOMIC ANALYSIS AND ECONOMIC
ANALYSIS SOCIAL MAINTENANCE PROJECTS FOR ROADS
BY PPP FORM
3.1. Purpose of Economic Analysis - Finance of road maintenance
projects under PPP
Addressing the concepts of economic analysis and financial analysis,
thereby determining the purpose of the Economic - Financial analysis, is
to consider and evaluate the feasibility of the project in terms of the State
and the First House. private; From the results of this analysis, the State
and Investors will have assessments on the feasibility of the project from
which to decide whether to invest in the project or not and it is also a basis
for the State and the First House. review the conditions of support and
constraints in the project implementation process for the project to be
successful (The State acquires the project - Investors get profit).
3.2. Purpose of Socio-Economic Analysis of road maintenance projects
The concept of socio-economic analysis and Socio-Economic Analysis


18
aims to compare and evaluate the costs involved in the maintenance of
road works with the benefits to society, for the community, for the state.
The Socio-Economic analysis is carried out by comparing the cost and
benefits of the works that carry out the maintenance work according to the

regulations and the plan to maintain the status quo with the current quality
of exploitation.
The Socio-Economic Analysis, which stands on the social community's
point of view, has a direct meaning to the State, which stipulates a
reasonable proportion of the State capital to join investors. Increasing the
ratio of state capital to projects that bring great benefits to the social
community that will not rigidly stipulate a constant rate for all road
maintenance projects. The existing problem is the content of SocioEconomic analysis, which has no provisions in PPP projects.
3.3. Analysis of technical indicators performs economic evaluation in
PPP maintenance
Common economic assessment techniques are used in analyzing
maintenance projects PPP on existing roads including life cycle cost
analysis, cost-benefit analysis and cost-performance analysis. Results are
performed in the following calculation and analysis steps:
3.3.1. Life cycle cost analysis
Specific costs at different times were analyzed by the author in the
thesis through the formulas (3.1; 3.2; 3.4; 3.5).
3.3.2. Cost-benefit analysis
In terms of concept, cost-benefit analysis is a comprehensive method to
evaluate economic decisions, including decisions regarding transport projects.
When benefits can be quantified, they can be compared to costs by reducing
benefits and costs to a common level and comparing them to see the
difference or a ratio. In the converted net present value method, costs and
benefits are reduced to the present value and the converted net present value
is calculated as follows: NPV = B - C (3.6)
3.3.3. Capital source scenario and road maintenance plan by PPP:
- Capital from maintenance fund
The road maintenance fund officially went into operation in 2013,
based on the current regulations, the fund of the Maintenance Fund will be
formed based on the total number of vehicles registered and registered. .

19
With the current revenue situation and budget allocation mechanism,
the current capital source only meets about 35% of annual maintenance
needs for priority national highways.
- Expected capital mobilization plan for road maintenance being
exploited by PPP.
Through the author's research and reference from traffic experts, if
Vietnam can mobilize sufficient capital to carry out maintenance of all
priority national roads for about 3 years, it will improve. significant
quality of national highways, thereby reducing the degradation speed of
the roads and reducing the cost of overhaul and major maintenance
(overhaul) each year. However, in the context of public debt, although
there have been signs of decline in the past few years, it is still high (about
61% of GDP). Therefore, mobilizing a large capital source (about VND
100,000 billion for overhaul as proposed in 3 years) is not easy.
Therefore, to assess the above proposal is appropriate and feasible,
consideration of the options and scenarios of capital mobilization from
different sources is necessary.
3.3.4. The role of the state and investors in mobilizing capital for road
maintenance is being exploited by PPP
3.3.4.1. The implementing agency manages the PPP maintenance road
project
The implementation of PPP maintenance projects is the method that the
state management agency directly manages the project and the investor only
participates in the capital contribution program to implement the project and is
allowed to calculate the payback according to the financial plan. annually from
the Road Maintenance Fund to minimize the risk between the state
management agency and the private sector and enhance the responsibility

between the state management agencies on roads and the private sector.
multiply.
When implementing road maintenance being exploited in the form of PPP
is to divide responsibility in the construction of capital ratio; The state will
respond to the capital for the implementation of the project, which is 35% for
the proposed road, which must meet the technical criteria when selecting
options for proposing maintenance of PPP and investors to develop capital
mobilization plan. to implement a maintenance project with a capital


20
contribution of 65% / E-commerce (without state guarantee for the loan of
investors).
3.3.4.2. Regulations in the legal corridor when implementing PPP
maintenance
The selection of investors to implement PPP maintenance projects in the
form of international bidding, on the basis of fair competition, transparency,
economic efficiency, in accordance with Vietnamese law and customary ,
international practice. Open bidding to select qualified investors is an open door
for many potential investors to participate in PPP maintenance projects.
3.3.4.3. Allowing investors to mobilize capital from all economic sectors
Upgrading roads in operation under Public-Private Partnership PPP is a new
opportunity for investors, allowing investors to transfer part or all of their rights
and obligations under project contracts. It is also an "open" button for investors
to choose the maintenance projects of PPP roads being exploited for
investment; at the same time, train and apply technology transfer to traditional
road management, maintenance and exploitation units to use the available
manpower at road management units.
3.4. Financial analysis for a road maintenance project under
development under PPP investment in Vietnamese conditions:

In order to provide a basis for comparison and selection, the experts
propose three financial scenarios to consider including: (i) mobilizing
capital from the private sector in the form of public-private partnerships;
(ii) preferential loans to commercial banks; and (iii) issuing government
bonds for 20-30 years. The common feature of all three options is that
debt obligations will be paid based on annual overhaul cost savings, as
road quality has been improved synchronously for 3 years.
The following section presents the assumptions and parameters needed
for the calculation and assessment of the feasibility of the three proposed
financial schemes.
Conclusion chapter 3
1. In the economic analysis of road maintenance projects in the form of
PPP, the thesis proposes to implement:
a. Economic - Financial Analysis from the point of view of
participating contractors who invest in road maintenance investment,
consider analyzing the proceeds in the road exploitation process


21
(collecting transportation fees, rental rights corridors on both sides of the
road, etc.) allow for compensation for the costs of road maintenance
projects and how much they can benefit.
b. Socio-Economic Analysis from the point of view of society, of the
State the benefits brought about by the implementation of road
maintenance projects for society and were analyzed in the sections of the
chapter.
2. Introduced calculation formulas and an example of analyzing and
evaluating costs and benefits when financial analysis for a road
maintenance project in the form of PPP.
CHAPTER 4

APPLICATION OF TECHNICAL ITEMS RECOMMENDED IN
THE THESIS WHEN IMPLEMENTING A MAINTENANCE OF A
PROPOSED ROAD UNDER THE FORM OF PPP
Based on the analysis of technical indicators for the roads being exploited
in Chapter 2 and the method of evaluation, financial and economic analysis,
socio-economic analysis in Chapter 3, NCS conducts research and
calculations. and applied to 01 road maintenance project under the form of
PPP investment.
In this chapter, the author selects and applies the calculation parameters
for the route of NH14B, which is the arterial horizontal line of the road
network of the central region. On the basis of the actual conditions of the
route being exploited to propose steps in determining the technical criteria of
the road as a basis for proposing maintenance in the form of PPP.
4.1. Determine the capacity for travel and service level of the proposed route
4.2. Determining the road surface CPI index of the line under operation:
- Prepare a multi-condition table to determine the remaining life of the
road surface
- Make a table to determine the remaining life of the road surface
according to method 1
4.3. Determining the traffic safety level of the proposed route:
4.4. Applying PPP maintenance financing plan for the proposed route:
- Capital need to mobilize PPP maintenance QL.14B
- Plan of borrowing and implementing debt obligations.


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- Some basic principles in debt scheduling - borrowing.
- Analysis results.
- Risk analysis and simulation.
4.5. Calculate details of implementing PPP maintenance QL.14B

- Input parameters
- Results of Monte-Carlo simulation analysis
- Capital structure
- Capital repayment plan
- Determine the economic benefits of the project
CONCLUSIONS AND RECOMMENDATIONS
1. Conclusion:
1.1. Proposing road maintenance projects in the form of PPPs is quite
new in Vietnam. However, in order to meet the demand for investment in
the development of road traffic infrastructure in particular for socioeconomic development, meeting the increasing of vehicles is increasing; At
the same time, attracting private sector investment into maintenance
projects is a very urgent requirement. The author has reviewed the issues of
PPP public investment in investment for projects in the road transport sector
in general and the actual needs of road maintenance projects in particular.
Proved in reality the work of road maintenance and assessment of the
quality of exploitation of the roads being exploited through basic technical
criteria to serve as a basis for the determination of economic and technical
norms. when analyzing road maintenance projects in the form of PPP.
1.2. Study and propose 3 technical criteria for assessing the route in
operation associated with the proposed maintenance investment in the
form of PPP. Develop methods to evaluate the above technical criteria for
the existing route as a basis for proposing the management of road
maintenance projects in the form of PPP based on the technical criteria of
traffic traffic, the capacity of the road being exploited, the history of the
road investment, the road condition such as the current and future road,
road, and traffic safety targets. The dissertation has studied in depth the


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methods to determine the above three criteria to be applicable to different

cases that may be encountered in practice.
1.3. Based on the experience of developing countries in the past
decades and in recent years in Vietnam, the PhD student has argued,
analyzed and proposed the participation rate of the state capital in the
form of PPP investment in The maintenance of road works is between
20% and 35% depending on the project's characteristics of the total
investment, the complexity of the project implementation, or the meaning
of the project's benefits. with society and with the community (based on
the results of socio-economic analysis).
1.4. The study proposes a method of financial analysis to perform PPP
maintenance for existing roads. The process of conducting the assessment
of the currently exploited route when proposing maintenance in the form
of PPP in Vietnam consists of three steps, namely: Determining the actual
operation of the route to meet the actual travel capacity. investment
history of route exploitation; determine the standard of quality of ground,
pavement (SCI, PCI) of the line being exploited; determine the level of
traffic safety on the existing route when proposing PPP maintenance.
1.5. Proposing to add investment regulations in the form of PPP of
Socio-Economic Analysis content (in addition to the administrative
support) to serve as a basis for negotiation between the State and investors
on the capital contribution ratio for maintenance project.
2. Recommendations
2.1. For central agencies
- - Because the legal institutions for PPP investment are only at the level
of government decrees and guiding circulars of the ministries; The law on
PPP investment is in the process of construction, so it is recommended that
the Central agencies soon complete and enact a law on PPP investment to
create a clear legal corridor as a basis for attracting investment in the form of
PPP. in general and PPP investment in the transport sector as well as in road
maintenance in particular.

- The Government and line ministries soon issued decrees and circulars