Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date
PDS Updated as of 09 Jul 2014

Project Name Central Mekong Delta Region Connectivity Project
Country Viet Nam
Project/Program Number 40255-033
Status Approved
Geographical Location Central Mekong Delta Region
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Transport and ICT
Subsector Road transport (non-urban)
Strategic Agendas
Drivers of Change
Gender Equity and Mainstreaming Categories No gender elements

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan3013Ordinary capital resources410,000
Grant0353Australian Grant134,000
Counterpart 56,000
TOTAL US$ 600,000

Safeguard Categories

For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

Environment A
Involuntary Resettlement A
Indigenous Peoples C

Summary of Environmental and Social Issues

Environmental Aspects
A draft EIA and EMP were prepared based on ADB?s Safeguard Policy Statement 2009 (SPS) and posted on ADB?s website on 22 January 2013. The project alignment will traverse mostly agricultural land and the fringes of urban areas. There is little natural landscape along the alignment. Forests, conservation areas or reserves are not found in the vicinity of the investment project. Air quality data along two existing roads close to the project alignment show an increasing trend of particulate concentration due to the increasing number of vehicles and motorbikes using the ferries and idling vehicles whose engines are often running while the ferries are loading and unloading.
Involuntary Resettlement
A total of 7,139 people (1,555 households) are affected by the project?s land acquisition. Of this, about 1,000 households will lose productive land and 558 households will require relocation. The project will require a total land area of 255 hectares. The Income Restoration Programs (IRPs) which are part of the RPs will be funded under the TA through a variation order to the DDIS Consultant?s contract. The IRPs will be implemented over two years, and are designed to be implemented in a flexible manner. A work plan for the first phase will be based on detailed needs assessment. The second phase workplan will be based on results of implementation evaluation workshop.
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

During Project Design
Public meetings, focus group discussions, workshops and separate meetings with women and vulnerable groups were undertaken during the project preparator technical assistance (TA 7045-VIE) implementation and the TA Project (TA 7822-VIE).
During Project Implementation
Public meetings, awareness programs, consultations with local authorities and affected people, grievance redress, provincial committee meetings will be held during project implementation

Description

The investment project will improve connectivity in the Mekong Delta Region in Viet Nam and provide efficient access from Ho Chi Minh City to the Southern Coastal Region through construction of two cable stayed bridges across the Mekong River and associated roads: (i) Component 1: Cao Lanh Bridge (2.4 km) and approach roads (5.4 km); (ii) Component 2: Interconnecting Road (15.7 km); (iii) Component 3: Vam Cong Bridge (2.97 km) and approach roads (4.08 km); The investment project is located on the boundaries of Dong Thap province and Can Tho city. The two cable stayed bridges will be constructed to four-lane carriageway and two-lane motorcycle lane standard with total bridge width of 24.5 meters and the interconnecting road will be constructed initially to four-lane standard with a formation width of 20.6 meters; to be widened to six-lane standard in future. Associated with the investment project, ADB approved a technical assistance (TA 7822, the TA project) fully financed by the Government of Australia. This TA project was approved to meet two fundamental project needs: (i) preparing detailed designs and bidding documents for the portion of the investment project that ADB and the Government of Australia are considering financing, and (ii) ensuring the early availability of social and environmental planning documents for the investment project. The objectives of the TA project were to: (i) reduce project start-up delays and speed up implementation of the investment project; (ii) respond to the government's target for construction and commissioning of the investment project during 2013-2017; (iii) reduce the government's loan servicing cost on the ADB loan for the investment project; and (iv) include construction supervision services and capacity building support, which are critical for the successful implementation of the investment project. Detailed designs, bidding documents, and safeguards planning documents were completed and advance action approved as part of the TA project. Procurement and safeguards implementation are well advanced. The project, thus, has achieved a high level of readiness and construction activities are expected to start immediately after loan and grant effectiveness.

Project Rationale and Linkage to Country/Regional Strategy

The Mekong Delta is one of the four key economic centers in Viet Nam and its economy relies mainly on agro-industry and other light industries. It is also known as the rice basket of Viet Nam and contributes significantly to Viet Nam's record rice exports, making the country among the world's top three rice exporters. However, poor infrastructure and natural calamities limit growth, and poverty in the more remote areas of the Mekong Delta remains high. The government has launched an expressway development plan that identifies the Second Southern Highway (SSH) as a key artery for development of the Mekong Delta. The SSH connects HCMC through the Mekong Delta to the southern coastal region and serves as an alternative to National Highway 1A. It also provides access to the Mekong Delta's southwestern provinces, and connects to the Greater Mekong Subregion Southern Coastal Corridor at Rach Gia, which connects to the Cambodian and Thai highway networks. The SSH is currently constrained by ferry crossings at Cao Lanh and Vam Cong, which are slow and cause delays to traffic. The government plans to remove the bottlenecks caused by slow ferry operations and, more generally, improve connectivity in the Mekong Delta by constructing a section of the SSH between Cao Lanh (on the northern bank of the Tien branch of the Mekong River) and Long Xuyen (on the southern bank of the Hau branch). This section will consist of: (i) component 1: Cao Lanh Bridge (2.4 km) and approach roads (5.4 km); (ii) component 2: interconnecting road (15.7km); (iii) component 3: Vam Cong Bridge (2.97 km), and approach roads (4.08 km); (iv) component 4: Long Xuyen Bypass (17.5 km); (v) component 5: Long Xuyen Bypass extension (5.7 km); and (vi) component 6: My An-Cao Lanh connecting road (26.9 km). The investment project will comprise components 1-3. The government intends to construct components 4-6 as part of a future project. The governments of Australia and of the Republic of Korea have agreed to cofinance the investment project. The investment project is expected to bring inclusive development to areas that are poorly connected to major population centers, improve access to basic social and health services, increase national food security by stimulating local agro-industry and boosting exports, facilitate private sector investment, and extend regional connectivity to neighboring Cambodia and the Greater Mekong Subregion, as well as to Viet Nam's major inland ports in the Mekong Delta. An estimated 170,000 road users will benefit daily from the investment project and the 5 million residents of An Giang, Can Tho, and Dong Thap provinces will benefit from an improvement in living standards.

Development Impact

Improved and sustainable transport connectivity contributing to inclusive development in the Central Mekong Delta Region

Project Outcome

Description of Outcome
Improved road transport access and travel time across and within the Central Mekong Delta Region
Progress Towards Outcome
Two cable-stayed bridge contracts are signed and mobilized.

Outputs and Implementation Progress

Description of Project Outputs
Project roads and bridge built and maintained
Status of Implementation Progress (Outputs, Activities, and Issues)
Contracts for two cable-stayed bridges are signed and have mobilized. Bids for road contracts are ongoing and contracts are expected to be signed in Q4 2014. Signed bridge contracts include bridge health monitoring systems. Will be prepared 1 year prior to completion by the supervision consultants and contractors Training programs are included in the contract of supervision consultant
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2013 Sep 11
Consulting Services
Consulting services for preparation of detailed engineering designs, civil works procurement and project implementation support will be financed under the associated TA 7822-VIE approved by ADB on 31 May 2011. The TA will require 370 person-months of international consulting services and 1,627 person-months of national consulting services. The expected implementation period is June 2011-December 2016. The consultants will be recruited according to ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). The TA is complex and requires a high standard of technical qualification from the consultants. Therefore, international consulting firm(s) in association with national consulting firm(s) will be engaged using the quality- and cost-based selection method with a quality-cost ratio of 90:10 and a full technical proposal. Consulting contracts will be on a partial lump sum basis: a lump sum for design and procurement assistance (part A), and time-based for implementation support (part B). In addition, the TA will require 16 person-months of individual consultant services for proof checking the Cao Lanh Bridge designs prepared by the consulting firm. The PMU-MT will recruit these consultants using the individual consultant selection method. ADB's Procurement Guidelines will be applicable in any procurement activities to be financed under the TA. Upon completion, all assets purchased under the TA will be turned over to the MOT. The joint venture of firms, WSA (USA), WSP (Finland) and Yooshin (Korea) were appointed as the Detailed Design and Implementation Support Consultants (DDIS Consultant) and mobilized in November 2011. Ove Arup & Partners Hong Kong Ltd., was appointed as Independent Proof Check Consultant and mobilized in May 2012. An individual consultant for external monitoring of resettlement activities was mobilized in June 2013
Procurement
- International competitive bidding procedures will be used for civil works contracts with prequalificiation following ADB's Procurement Guidelines (2010, as amended from time to time). - Procurement plan for the project was approved by ADB in December 2012 - Prequalification for the Cao Lanh Bridge completed in April 2013 and bids were opened June 2013. Contract was signed with China Road and Bridge Corporation on 16 October 2013 under advance contracting and retroactive financing arrangements. - Bids for 5 road sections were opened on 21 January 2014 and currently under evaluation by the Implementing Agency.
Procurement and Consulting Notices
http://www.adb.org/projects/40255-033/business-opportunities

Timetable

Concept Clearance 11 Oct 2010
Fact-finding 14 Sep 2010 to 30 Sep 2010
Management Review Meeting 12 Apr 2013
Approval 05 Aug 2013
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 3013 05 Aug 2013 16 Oct 2013 27 Dec 2013 30 Jun 2020

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
19 Aug 2014 Loan 3013 71,794 0 18.00%
Cumulative Disbursements
19 Aug 2014 Loan 3013 34,948 0 9.00%

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 3013
Grant 0353

Contacts and Update Details

Responsible ADB Officer Rustam Ishenaliev (rishenaliev@adb.org)
Responsible ADB Department Southeast Asia Department
Responsible ADB Divisions Transport and Communications Division, SERD
Executing Agencies Ministry of Transport

Links

Project Website http://www.adb.org/projects/40255-033/main
List of Project Documents http://www.adb.org/projects/40255-033/documents