BergerWorld: 4th Quarter 2004

In the past ten years, Vietnam has begun a rapid process of economic development and urbanization. As the economy continues to grow, more people are attracted to Vietnam's cities. In 1998, Vietnam's urban population was 17 million, 22 percent of the total population, and the number of urban residents is increasing dramatically. To accommodate this exponential growth and ensure that the every citizen receives essential services, the government of Vietnam has instituted an innovative urban development policy to control the growth of the country's main cities, Ho Chi Minh City and Hanoi, and promote the development of secondary towns and provincial capitals. As part of this program, Louis Berger SAS worked to improve water and sanitation services in the cities of Hoa Lac, Phu Cat and Lao Cai.

To encourage regulated and well planned growth in the greater Hanoi area, regional developers prepared plans for the Hoa Lac high tech zone and the Phu Cat industrial area in Ha Tay province, 40 kilometers west of central Hanoi. Hoa Lac is envisioned as a center of research and development fostering the growth of a high-tech economy and will also include luxury housing and recreational complexes designed to attract talent to the area. Phu Cat industrial area is already booming as manufacturing and industrial corporations expand into a specially planned corridor of towns located at the junction of six major highways and several important rail routes. To facilitate the growth of these economic centers, Berger, in association with Vinaconsult, prepared feasibility studies for the construction of € 30 million in urban infrastructure, including the development of wastewater collection and treatment systems, power supplies and local roads for Ho Lac and Phu Cat. Berger experts evaluated prior surveys and field data reports, analyzed the likely demand for water over a 20-year period and developed detailed water supply system designs for the Ho Lac area, capable of supplying more than 20,000 cubic meters of water per day. The Team then prepared revised master plans and reports for the creation of expanded wastewater collection and treatment facilities capable of supporting Hoa Lac and Phu Cat. The initial development of these regional business centers is the first step towards creating a new urban area of 600,000 inhabitants containing industries and high tech areas, a university and providing cultural, sports and tourist activities to national and international visitors.

Louis Berger SAS is also assisting the French Development Agency (AFD) to assess the feasibility of financing the $25 million Lao Cai Urban Development program. Lao Cai, at the Chinese border, serves as an economic hub between China and Vietnam. The city is already experiencing an increase in trade and tourism, and this growth is anticipated to continue. In addition, Lao Cai province is rich in several minerals, including graphite and tin, and plans are in the works to develop mines in the region. To accommodate this growth, the Lao Cai Urban Development Project management unit requested the AFD to finance the development of water supply, drainage and sanitation systems. Berger, in association with VIWASE and Lao Cai Construction and Transport Company, prepared forecasts of population growth and likely water demand, evaluated alternative sources and prepared feasibility studies to determine the viability of the program. The finds were reviewed with AFD and government officials.