Projects

Project Information

Project

Second Red River Water Resources Sector Project

Borrower

The Socialist Republic of Viet Nam

Project Description

The Project is a sector project designed to establish integrated water resource management in the Red River basin, and to improve priority infrastructure for water service delivery in the poorer provinces of the basin. High?priority investments will be supported by appropriate institutional strengthening measures and capacity building through participatory processes.

Total Project Cost

The Project is estimated to cost US$156.2 million equivalent, of which US$26.5 million is the foreign exchange cost and US$129.7 million equivalent is the local currency cost.

Loan Amount and Terms

The ADB loan in an amount equivalent to SDR 54,338,000 (US$70 million) will be from ADB's Special Funds resources with an amortization period of 32 years, including a grace period of 8 years, interest charge of 1 percent per annum during the grace period and 1.5 percent thereafter.

Period of Utilization

Until 30 June 2008

Implementation Arrangements

Part A will be implemented by the Department of Water Resources and Hydraulic Works Management of the Ministry of Agriculture and Rural Development (MARD), in collaboration with the Red River Basin Organization established in April 2001, and with the support of central ministries and provincial governments concerned. Part B will be implemented through a project management office established in the Central Project Office of MARD, in collaboration with project implementation units established at the provincial level. Subprojects will be identified and selected in accordance with detailed criteria. Local communities and nongovernment organizations will actively participate in project implementation.

Period of Utilization

The Executing Agency will be MARD. Provincial authorities will be involved in formulating and implementing subprojects, as well as in activities under part A.

Procurement

The procurement of goods and services financed by ADB under the Project will be in accordance with ADB's Guidelines for Procurement. Contractors and design firms for civil works will be required to prequalify according to conditions specified, to ensure selection of firms with adequate capacity and competence. Equipment packages over US$500,000 will be procured through international competitive bidding, while smaller packages will be financed through international shopping or off?the?shelf purchase.

Consulting Services

The Project will require approximately 1,018 person-months of consulting services: 652 domestic and 366 international. Of these services, 361 person-months domestic and 250 international consulting services will be financed as a grant by the Government of the Netherlands under part A. The consulting services will cover project management, water policy and planning, watershed management, training, hydrology, information technology, legal aspects of water licensing, farming systems, agricultural economics, agricultural and forestry extension, civil engineering, institutional development, financial management, and participatory planning. Consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants and other arrangements on the use of domestic consultants satisfactory to ADB.

Estimated Project Completion Date

31 December 2007

Project Benefits and Beneficiaries

The poverty reduction and socioeconomic benefits will arise mainly from increased agricultural production and productivity leading to increased income, reduced vulnerability to floods, and enhanced food security. Other benefits will accrue through (i) improved rural infrastructure; (ii) increased capacity to utilize productive support services; (iii) improved water quality monitoring that reduces health hazards, particularly to women farmers who suffer from water-related diseases due to long hours of working in the field and the poor quality of water; (iv) employment generation through subproject construction activities; and (v) environmental benefit in watershed protection through reforestation activities. Poverty impact and benefit distribution studies have shown farmers in poorer communities to be the greatest beneficiaries of the Project, particularly poorer farmers in the upland region of the basin.