LOAN: VIE 27399-01 | HCMC Environmental Improvement

Viet Nam,Soc Rep of

LOAN: VIE 27399-01

HCMC Environmental Improvement

•	Missions
•	Loan Approval Date
•	Estimated Completion Date
•	Cost and Financing Plan
•	Description
•	Development Objectives
•	Thematic Classification
•	Poverty Classification
•	Rationale
•	Objectives and Scope
•	Policy Dialogue
•	Environment Category
•	Env't Impact and Mitigation
•	Social Aspects and Remedies
•	Benefits and Beneficiaries
•	Public Consultation
•	Beneficiary Participation in Formulation
•	Beneficiary Participation in Implementation
•	Consulting Services
•	Procurement
•	Contacts
•	Remarks

Location
Ho Chi Minh City

Sector
Multisector /Multisector

Initial Listing
1 February 1997

Most Recent Update
20 December 2006

Executing Agency(ies)

Department of Transport and Urban Public Works

Department of Science, Technology and Environment

Missions

Loan Approval Date

7 October 1999

Estimated Completion Date

December 2005

Cost and Financing Plan (in US$ million)

Source	Foreign Cost	Local Cost	Total
Bank	43.80	26.20	70.00
Cofinancing	1.80	0.00	1.80
Borrower	0.00	28.20	28.20
Beneficiaries	0.00	0.00	0.00
Others	0.00	0.00	0.00
Project/Program Cost	45.60	54.40	100.00

OCR ADF Total

Loan Amount 0.00 70.00 70.00

Description

The proposed Project will support the Government's urban development priorities of improving infrastructure to sustain economic growth, improving the living conditions of the people, reducing poverty, and enhancing the overall environmental conditions within Ho Chi Minh City. The Project also aims to improve institutional capacity by implementing such policy reforms as decentralization and strengthening of project planning and implementation, strengthening of financial management, and improvement of urban environmental management.

Strategic Development Objectives

Primary: Sound Management of Environment

Secondary

Rationale

Existing combined drainage and sewerage systems within HCMC are presently grossly inadequate due to aging and overloading brought about by rapid urbanization. The frequent overflow of highly polluted waters poses health risks to the population and disrupts economic and social activities. The existing solid waste collection system is presently inadequate due to insufficient collection and transport equipment, and leads to illegal disposal of solid waste in sewers and waterways. The Project will support the Government's objectives and development strategy to 2020 for the sector by providing investments in areas of high priority and improving sector institutions. The Project supports the Government's initiatives in the reduction of brown pollution issues through various pilot approaches with the industry sector.

Objectives and Scope

The objectives of the Project are to (i) improve the urban environment through appropriate urban infrastructure development and the effective and sustainable management or urban services; (ii) further human development through environmental improvements; (iii) support economic growth through the development and management of sustainable and well-planned infrastructure development and urban services; and (iv) reduce environmental health hazards to the urban community. The Project consists of three parts: Part A - infrastructure improvements consisting of urban drainage/sewerage rehabilitation; solid waste management, crematoria, and capacity building and institutional strengthening; Part B - environmental improvements consisting of industrial pollution control, air quality monitoring, and capacity building and institutional strengthening; and Part C - implementation assistance.

Policy Dialogue

More formalized system of user fees and charges to sustain infrastructure development and more efficient management of urban related services; improved overall sectoral planning and management capabilities of the various line agencies at the local level to allow for greater accountability and governance in the delivery of services; more diligent and cost-effective approach for effective enforcement of environmental standards and sustainable economic development; and adequate cost recovery criteria to enhance private sector participation.

Environment Category: B

Environment Impact and Mitigation

A summary initial environmental assessment carried out for each of the Project components showed that no significant adverse effects are anticipated and that a detailed environmental impact assessment is not required. All Project components significantly enhance the overall existing environmental conditions that presently prevail.

Social Aspects and Remedies

The Project is designed so that it is responsive to the communities' needs, will function on a sustainable basis, and will have no adverse social or environmental impacts. Social measures incorporated into the Project are designed to ensure that no population groups are disadvantaged, that there is equitable access to the proposed facilities, and that these are affordable to the poorer groups. A total of 255 households (189 under the urban drainage component and 66 households under the solid waste management component) or approximately 2,000 persons are expected to be resettled. The majority of those households will be affected by the Hang Bang Canal Rehabilitation component. Regular consultative meetings on compensation and other assistance have been held with the affected residents. Where possible, displaced households will be resettled within their existing district or in adjoining districts, but in all cases as near to their present location as possible to minimize disruption of their lives.

Benefits and Beneficiaries

The Project will improve drainage and sewerage and lessen flooding problems in three of the most densely populated districts in HCMC and will benefit around 240,000 people. The solid waste management components will serve the whole of HCMC and its estimated population of 6 million. The social impacts of the Project will be positive for all income groups and benefits for low-income groups, women, and children will be significant. All Project components will contribute significantly to improving the urban environment and public health conditions, and will stimulate private investments in the city.

Public Consultation

Arranged by Borrower and Bank

Date for Consultation : Throughout the implementation period of PPTA 2790-VIE and during Fact-finding and Appraisal.

Groups Consulted : Government agencies concerned, NGOs, and district leaders and communities impacted by the Project were consulted.

Beneficiary Participation in Formulation

All Project components were formulated after discussions with concerned Government officials and consultations with affected communities and business groups. The Project is designed so that it is responsive to the communities' needs, will function on a sustainable basis, and will have no adverse social or environmental impacts.

Beneficiary Participation in Implementation

The beneficiaries will be consulted during Project implementation. A community environmental awareness program will be integrated into all Project components.

Consulting Services

A total of about 498 person-months (96 person-months international and 402 person-months domestic) of consulting services in four packages will be required: Package A will assist with engineering designs, supervision, procurement activities, and institutional support; Package B will support the solid waste management component and will have expertise in institutional development, solid waste management operations, financial management, and training; Package C will develop and support the cleaner production program and will comprise experts in chemical , process, and mechanical engineering; Package D will support the community environmental awareness program and will comprise experts in public information campaigns and community training programs. To support these activities, allowance has been made for the involvement of a local non-government organization or domestic consultants (54 person-months) to help mobilize community activities.

Procurement

Civil works contracts estimated to cost $1.0 million equivalent or more will be carried out using international competitive bidding and contracts estimated to cost less than $1.0 million equivalent under local competitive bidding procedures (LCB) acceptable to the Bank. All equipment and materials required for the Project will be grouped into packages suitable for ICB procurement. Equipment that are locally available and costing less than $50,000 equivalent may be procured through LCB or direct purchase with procedures acceptable to the Bank. International shopping procedures will be followed for materials and equipment packages estimated to cost more than $50,000 but less than $500,000 equivalent. ICB procedures will be followed for materials and equipment in excess of $500,000 equivalent.

Contacts

Bank

William A. Costin
Principal Project Implementation Specialist
VRM
Tel. No.:
E-mail:

Executing Agency
Department of Transport and Urban Public Works

Contact Person : Mme. Nguyen Thi Dung, Deputy Director (For Part A)
Tel. No. :
Fax. No. : (848)290458
E-mail :

Contact Person :
Tel. No. :
Fax. No. :
E-mail :

Department of Science, Technology and Environment

Contact Person : Mr. Nguyen Thien Nhan, Director (For Part B)
Tel. No. :
Fax. No. : (848)9320271
E-mail :

Contact Person :
Tel. No. :
Fax. No. :
E-mail :

Remarks

Projects