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Viet Nam,Soc Rep of
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LOAN: VIE 30292-02
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Central Region Water Resources
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Location
The provinces of Binh Dinh, Quang Binh, Quang Ngai, Quang Tri, Thanh Hoa, and Thua Thien Hue in the central region of Viet Nam
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Sector
Agriculture & Natural Resources /Irrigation & Drainage
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Initial Listing
1 March 1997
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Most Recent Update
11 December 2006
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Executing Agency(ies)
Ministry of Agriculture and Rural Development
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- Missions
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| TA Fact-Finding |
Loan Fact-Finding |
Pre-Appraisal |
Appraisal |
| 6-18 Mar 2002 |
24 May-1 Jun 2005 |
TBD |
22 Sep-5 Oct 2005 |
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Loan Approval Date
19 December 2005
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Estimated Completion Date
December 2011
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- Cost and Financing Plan (in US$ million)
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| Source |
Foreign Cost |
Local Cost |
Total |
| Bank |
36.50 |
37.80 |
74.30 |
| Cofinancing |
0.00 |
0.00 |
0.00 |
| Borrower |
1.30 |
23.40 |
24.70 |
| Beneficiaries |
0.00 |
0.00 |
0.00 |
| Others |
0.00 |
0.00 |
0.00 |
| Project/Program Cost |
37.80 |
61.20 |
99.00 |
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OCR |
ADF |
Total |
| Loan Amount |
0.00 |
74.30 |
74.30 |
- Description
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The provinces of Binh Dinh, Quang Binh, Quang Ngai, Quang Tri, Thanh Hoa, and Thua Thien Hue in the central region of Viet Nam have high rural poverty incidence and suffer disproportionately from natural disasters that cause loss of life and damage to houses and crops. Nevertheless, the provinces have good potential for increased agricultural production through improved water resources management. Six subprojects (one in each of the target provinces) were selected according to agreed selection criteria: (i) financially and economically viable; (ii) contributing strongly to poverty reduction; (iii) environmentally sustainable; (iv) compliant with principles of integrated water resources management; and (v) responsive to natural disaster risk reduction initiatives.
In selected irrigation schemes within these provinces, the project will establish (i) cost efficient, effective, accountable, and autonomous water service providers working in partnership with client water users to manage irrigation schemes; and (ii) rehabilitated and completed irrigation and drainage infrastructure incorporating measures to reduce vulnerability to natural disasters. Physical works will include rehabilitation and new construction of water conservation, irrigation, drainage, and natural disaster risk reduction measures. The project will ensure that the basic irrigation infrastructure functions correctly in accordance with modern technical standards.
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- Thematic Classification
- Economic Growth / Environmental Protection
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- Target Classification
- Targeted Intervention
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- Rationale
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Continued, deep, and lasting poverty reduction in the central coastal region depends on improving returns from agriculture, a sector whose performance is currently held back by physical and institutional constraints. The project is premised on the assumption that improved performance of the region's irrigation schemes can best be achieved by introducing service-oriented management systems that are financially sound; capable of meeting agreed service targets; enabled and structured to prepare work plans, budgets, user fees, and staff plans; and responsive to the needs of the client base. The project recognizes that the participation of water user groups in the planning, design, implementation, and operation and maintenance of subprojects is not only indispensable for sustainable operation, but is also a cost efficient means of helping service providers meet their goals.
- Objectives and Scope
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The project will develop the water resources and promote improved management practices to increase and protect incomes and livelihoods of people in the poorest provinces of the central region. The components are: (i) irrigation and development; (ii) institutional support for system management and agricultural extension.
- Policy Dialogue
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- Environment Category:
B
- Environment Impact and Mitigation
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- Social Aspects and Remedies
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- Benefits and Beneficiaries
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The Project will establish a service-oriented approach to irrigation water management wherein provincial-level agencies and the water users will be empowered to jointly manage irrigation schemes. This will be done through (i) restructuring the water service providers as financially autonomous entities, and forming water users into groups to participate fully in irrigation management; and (ii) constructing and rehabilitating water management infrastructure in each subproject area. Natural disaster risk reduction measures will complement the physical improvements. The main quantifiable benefits for the subproject areas are incremental outputs of agricultural products from 57,755 hectares deriving from (i) higher cropping intensities; (ii) higher yields due to reliable and full irrigation water supply; and (iii) incremental output from shrimp and fish farming.
About 400,500 persons in the six subproject areas will benefit from increased agricultural income and employment opportunities. In addition many of these will benefit from improved water supply for domestic use and reduced vulnerability to natural disasters. About 38% of beneficiary households live below Viet Nam's poverty line of $0.33 per person per day. Generally, farm benefits are expected to nearly double and this will lift about 6,000 household above the poverty line. About 25% of the households are headed by women and have limited access to land and credit. A social support program, incorporating a gender action plan, will be implemented to assist these households. Resettlement plans will ensure that project affected people will be adequately compensated in accordance with ADB guidelines. The project is economically viable with an economic internal rate of return of 14.1% for the base case.
- Public Consultation
- Arranged by
- Date for Consultation :
- Groups Consulted :
- Beneficiary Participation in Formulation
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- Beneficiary Participation in Implementation
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- Consulting Services
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The project will require a total of 1,075 person-months of which 859 person-months will be provided by domestic consultants and 216 person-months by international consultants. The consultants, NGOs, and local institutions will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for the selection and engagement of domestic consultants. The quality and cost-based selection method will be used. A team of international and domestic consultants will be attached to the CPMU in MARD, and other teams will be based in each of the project provinces as part of the PMUA. Domestic firms will be recruited to assist DARD with subproject detailed design and construction supervision.
- Procurement
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Civil works, goods, and related services will be procured in accordance with ADB's Guidelines for Procurement. Civil works contracts estimated to cost more than $2 million equivalent will be procured through international competitive bidding among pre-qualified firms with proven technical competence acceptable to ADB. Civil works contracts estimated to cost $2 million or less will be procured through local competitive bidding procedures. State-owned enterprises will be eligible to bid for contracts if they are financially autonomous, independently managed, and operate on the basis of commercial practice.
Equipment to be procured under the Project includes vehicles, motorcycles, computers, software, and water quality monitoring equipment. Such equipment will be procured by international competitive bidding where the cost is more than $500,000; through international shopping where the cost is from $100,000 to $500,000 per package; and through local competitive bidding where the cost is less than $100,000. Where the number of local suppliers is small, procurement may be made by direct purchase, with a threshold of $100,000, as will be the case for negotiated service contracts with local institutes or nongovernment organizations (NGOs).
- Contacts
- Bank
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Ian Fox
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Principal Natural Resources Management Specialist
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VRM
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Tel. No.:
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(632) 632-5519
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E-mail:
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- Executing Agency
- Ministry of Agriculture and Rural Development
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Contact Person
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