Outline of the Project

Project Name

Project on Strengthening Management Ability of Operation and Maintenance Company for the opening of Urban Railway Line 1 in Ho Chi Minh City

Subject

Transportation

Country

Viet Nam

Date R/D Signed

July 27, 2017

Term of Cooperation

December 8, 2017 to December 31, 2023

Implementing Organization

Management Authority for Urban Railway (MAUR)

Background

The population of the Ho Chi Minh City metropolitan area has increased from 6.59 million in 1995 to 14.48 million in 2015, accompanied by a significant increase in the number of registered motorcycles and automobiles, resulting in a significant increase in road traffic in the city. As a result, traffic congestion has worsened, traffic accidents have increased, air pollution has worsened, and access to city services has become more difficult, all of which hinder efficient economic and social activities. Given the difficulties in significantly expanding the existing public transportation system such as buses and the road network, Ho Chi Minh City is planning to develop a new urban transportation system centered on an urban railway system.

Under these circumstances, JICA is implementing the "Ho Chi Minh City Urban Railway Construction Project (Ben Thanh - Suoi Tien (Line 1))" (hereinafter referred to as "Line 1 Project"), a yen loan project to construct an urban railway between Ben Thanh and Suoi Tien and is providing yen loans with the aim of starting operations in 2020. The urban railway project in Vietnam has just started, and the Ho Chi Minh City Urban Railway Administration has no experience in establishing and operating an urban railway operating company. After the completion of TC1, the business plan for the urban railway operating company formulated in TC1 was approved in July 2013. However, the registration of the operating company and the assignment of staff to the operating company were postponed due to the delay in the opening of Line 1 during the implementation period of TC1.

In response to this situation, JICA conducted the "Project Implementation Support Study on Ho Chi Minh City Urban Railway Line 1 Construction Project" (August 2014-April 2016), and conducted a study on the factors and issues that have delayed the establishment of the urban railway operating company, including the application procedures for the urban railway operating company as a state-owned company, establishment of regulatory bodies and the scope of supervision, and The study also analyzed issues related to policy and institutional development in Vietnam as a whole. However, due to delays in political decision-making and other factors, no urban railway operating company has yet been established, and the Vietnamese government requested this cooperation because early support for the establishment of an urban railway operating company is essential to ensure that Line 1 will be operational in 2020 and that the personnel to operate Line 1 will continue to be available thereafter.

The Overall Goal

Urban railway line 1 in Ho Chi Minh City is operated safely and reliably by HURC1

Project Purpose

Management ability to operate and maintain urban railway is developed in HURC1

Output

1. The capacity of urban railway regulatory organization is strengthened
2. Necessary systems, internal rules and plans for management of HURC1 are developed
3. Operation and maintenance ability of HURC1 staff is improved
4. Necessary planning, sales, public relations activities of HURC1 are carried out
5. Necessary software for business management not included in CP4 of HURC1 is established
6. Necessary infrastructure for business management of HURC1 will be developed
7. Cooperation with urban railway management is established with other lines in Ho Chi Minh, Vietnam domestic and neighboring countries

Project Activities

Output1. The capacity of urban railway regulatory organization is strengthened

1-1	To establish the task team under MAUR and HURC1 for composing urban railway regulations.
1-2	To compose urban railway regulations and submit to HCMPC.

Output2. Necessary systems, internal rules and plans for management of HURC1 are developed.

2-1	To formulate the manuals and educational materials on education and training for obtaining urban railway driving license based on Vietnam Railway Act and related laws and regulations.
2-2	To cooperate with GC in composing and submitting training system and training plan for obtaining approval from VNRA.
2-3	To develop organization and regulations etc. for obtaining "safety certification"
2-4	To review and update internal rules of HURC1 formulated in TC1 (Management, Safety, Administration, Human Resource, Finance, Procurement, Information System, Business, etc.)
2-5	To formulate internal rules concerning the whole organization, administration department and business department.
2-6	To submit relevant documents to VNRA in order to obtain safety certificate and operating permission.
2-7	If necessary to formulate any other internal rules and plans which should be prepared before commencement of the Line 1, and approve it.
2-8	To formulate the internal rules and plans that should be prepared after commencement of the Line 1, and approve it.

Output3. Operation and maintenance ability of HURC1 staff is improved

3-1	To plan and promote company-wide efforts on safety.
3-2	To develop human resource recruitment plan.
3-3	To employ necessary staff based on the human resource recruitment plan, and to educate and train them (except for the actions included in the contract with GC and each contractor).
3-4	To formulate a plan for improving the operation after opening the Line 1.
3-5	To continue and conduct the necessary staff recruitment and training after opening the Line 1.

Output4. Necessary planning, sales, public relations activities of HURC1 are carried out

4-1	To make a plan and implement non railway business.
4-2	To promote the usage of urban railway through Mobility Management (MM) activities.
4-3	To understand and promote usage of Automated Fare Collection System (AFC) and IC Card.

Output5. Necessary software for business management not included in CP4 of HURC1 is established

5-1	To give advice in design office IT system based on the view point of end user.
5-2	To formulate the work manual and flow of IT system at the head office not included in the specification of CP4.
5-3	To support for requests and adjustment to CP4 from the HURC1 regarding "IT system" function.
5-4	To check system for hand-over of the related facilities and take-over documents after completion of construction not included in the specification of CP4.
5-5	To make plan and budget measures related to system development related to the above-mentioned work.

Output6. Necessary infrastructure for business management of HURC1 will be developed

6-1	To check as the position of end user (HURC1) and take over the railway tracks and civil works from contractors and GC (except for the actions included in the contract with GC and each contractor).
6-2	To check as the position of end user (HURC1) and take over the facilities from contractors and GC (except for the actions included in the contract with GC and each contractor).
6-3	To check as the position of end user (HURC1) and take over the E&M from contractors and GC (except for the actions included in the contract with GC and each contractor).
6-4	To check as the position of end user (HURC1) and take over the signals and tele-communication system from contractors and GC (except for the actions included in the contract with GC and each contractor).
6-5	To check as the position of end user (HURC1) and take over the rolling stock from contractors and GC (except for the actions included in the contract with GC and each contractor).
6-6	To check as the position of end user (HURC1) and take over the station and depot facilities from contractors and GC (except for the actions included in the contract with GC and each contractor).
6-7	To check as the position of end user (HURC1) and take over the headquarter office IT system from contractors and GC (except for the actions included in the contract with GC and each contractor).

Output7. Cooperation with urban railway management is established with other lines in Ho Chi Minh, Vietnam domestic and neighboring countries

7-1	To cooperate with PMU of other urban railway lines in HCMC.
7-2	To cooperate with relevant organizations of Hanoi urban railway.
7-3	To cooperate with relevant organizations on Vietnamese urban railway.
7-4	To cooperate with urban railway management companies in neighboring countries including Japan.

Inputs
[Japanese side]

• Experts: Project Manager, Deputy Project Manager/Railway Regulation, Planning, Human Resource Management, Accounting, Financing, General Affairs, Public relations, Engineering/Safety, Operations, Maintenance (Civil), Maintenance (Rolling Stock), Maintenance (Electrical Facilities), Maintenance (AFC), Non-rail Business (1), Non-rail Business (2), IT System (1), IT System (2), Mobility Management (1), Mobility Management (2), Information Collection/Analysism, Project Coordinator/ Monitoring and Evaluation (1), Project Coordinator/ Monitoring and Evaluation (2), Railway Regulation (2), Operation (2), Operation Safety Management System (1), Operation Safety Management System (2), Operation Safety Management System (3)
• Training in Japan

Inputs
[Vietnamese side]

• Assignment of Counterpart Personnel
• Provision of facilities for the Project implementation
• Project operating expenses