Executive Summary Da Nang Pre-Feasibility Study in Public Transport

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The final report of the Feasibility Study has been submitted by April 2009. As a matter of fact, this report was more than an FS, as it included also the institutional and physical design of a possible future public transport system. This design was than subject to the technical, financial, economic, legal and operational analysis. The first draft had been submitted by December 2008. In the following discussions with the People’s Committee of Da Nang, the Department of Transport and the Kreditanstalt für Wiederaufbau (KfW), several modifications have been proposed and introduced. As a result, the financial analysis had to be adjusted to these changes. The version, which we submit in the following pages differs therefore from the “final report”. The changes are not fundamental, but they affect the expected contributions by Da Nang PC in a significant way, as the financial results are critical.

The most important factors, which caused the modifications are:

  • The instruction by PC, not to use Han Bridge for Public Transport.
  • The instruction by KfW to base the financial calculations on Diesel as proposed fuel instead of LPG.

Not using Han bridge means that the number of passengers will drop by about 5%. Not using LPG raises fuel cost by about 20%, which increases costs for total operation by about 8%.

Taking into consideration these changes, the project is still an affordable investment, necessary for the future development of Da Nang. Completing the task, I feel obliged to thank all the team members for their contributions as well as the partners in Da Nang and at KfW, who have greatly contributed by their comments. The study is the work of an international team with experts from Vietnam, Japan, the Philippines and Germany. The hard work of the technical staff and in particular of the interpreters has been an indispensable contribution.

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