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 15 Sep 2014

Project Name Comprehensive Socioeconomic Urban Development Project in Viet Tri, Hung Yen and Dong Dang
Country Viet Nam
Project/Program Number 41462-013
Status Approved
Geographical Location
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
Water supply and other municipal infrastructure and services
Subsector Urban roads and traffic management
Other urban services
Renovation and protection of cultural heritage
Urban flood protection
Urban policy, institutional and capacity development
Urban sewerage
Urban solid waste management
Strategic Agendas Environmentally sustainable growth (ESG)
Inclusive economic growth (IEG)
Drivers of Change Gender equity and mainstreaming (GEM)
Governance and capacity development (GCD)
Partnerships (PAR)
Gender Equity and Mainstreaming Categories Category 2: Effective gender mainstreaming (EGM)

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan2826Asian Development Fund70,000
Counterpart 31,810
TOTAL US$ 101,810

Safeguard Categories

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

Environment B
Involuntary Resettlement A
Indigenous Peoples B

Summary of Environmental and Social Issues

Environmental Aspects
The project is classified category B. Potential environmental impacts of project outputs are relatively minor and can be prevented or mitigated. An initial environmental examination (IEE) was prepared for each project city. An environmental management plan is included with each IEE. The IEEs indicate that potential direct environmental impacts are mostly construction-related and thus short-lived. Environmental impacts associated with the new road developments, drainage and flood protection, infrastructure upgrading in the old town and Huu Nghi border gate facilities can be prevented or mitigated with standard construction procedures and measures. During project implementation, the EMPs will be implemented by the Project Implementation Units (PIUs) in conjunction with contractors under the direction of the PIUs. Project implementation supprt and a capacity development program will be provided for the PIUs for implementing the EMPs.
Involuntary Resettlement
The project is classified under involuntary resettlement category A. The project will require acquisition of approximately 97 hectares of land in the three project cities, comprising 73 hectares in Viet Tri, 17 hectares in Hung Yen and 7 hectares in Dong Dang. A resettlement plan was prepared for each project city to address resettlement impacts associated with the project's land acquisition requirements in compliance with ADB's Safeguard Policy Statement.
Indigenous Peoples
The project is classified under indigenous peoples category B. The presence of and potential activity impacts on indigenous peoples and/or ethnic minorities in the project areas have been screened. A large proportion of the people in the project area in Dong Dang are enthnic minorities who will be affected in a number of ways by the project, while there are no ethnic minorities in Viet Tri and Hung Yen. An ethnic minority development plan, in compliance with the Safeguard Policy Statement has been prepared to fully mitigate the risks and impacts caused to ethnic minorities in the project area in Dong Dang and to promote their participation and sharing in project benefits.

Stakeholder Communication, Participation and Consultation

During Project Design
During Project Implementation

Description

Project Rationale and Linkage to Country/Regional Strategy

The NSEC which connects southeastern People's Republic of China (PRC) with the Greater Mekong Subregion (GMS) countries is a dynamic and rapidly developing area. In particular, the eastern branch of the NSEC, connecting Kunming (Yunnan Province, PRC) and Nanning (Guangxi Zhuang Autonomous Region, PRC) to Hanoi and northern Viet Nam, is experiencing rapid growth arising from foreign direct investments, cross-border trade, and flows of goods and people. In PRC, two ADB financed projects are being prepared along the NSEC. Three urban areas, Viet Tri (an industrial base located on the Noi Bai-Lao Cai expressway, Phu Tho Province), Hung Yen (a growth center shifting from agricultural base to light industry and services, Hung Yen Province), and Dong Dang (a border town at the Viet Nam-PRC border, Lang Son Province) were identified as the project cities. They are located along the NSEC outside Hanoi. Increased traffic and trade along the NSEC has resulted in tremendous development pressures on these urban areas. Basic urban infrastructure and municipal services are insufficient both in terms of meeting the existing demands and the demands that are expected to be induced by increased movements of goods and people. The lack of urban infrastructure and services as well as insufficient capability to plan for the future growth is a significant constraint to the local socioeconomic development. At the same time, such shortcomings hinder the transformation of the NSEC from transport corridor into full-fledged economic corridor which provides for the efficient flows of goods and people, resulting in the increased trade and private investment. The proposed Project is in line with the Viet Nam's Socio-Economic Development Plan 2006-2010 which envisions Viet Nam to become an industrialized country by 2020. In the Orientation Master Plan for Urban Development to 2020, the Government aims to develop model cities and divert rural migration away from the large cities through the development of secondary cities and strengthening of rural-urban linkages. The proposed Project will address the GMS strategy to transform transport corridors into full-fledged economic corridors as identified in ADB's Regional Cooperation Strategy and Program for GMS (2009-2011) and confirmed during the 15th Ministerial Meeting of the GMS Economic Cooperation Program and the GMS Development Dialogue. ADB's Country Strategy and Program (CSP) for Viet Nam 2007-2010 emphasizes the need to target infrastructure investments in small and medium-sized cities, particularly those along the GMS economic corridors. The Assessment, Strategy and Roadmap (ASR) for the urban development sector in Viet Nam that is expected to be completed by June 2010 will accord a priority on the integrated urban development approach in corridor towns. Lessons learned from ADB's experience in the urban development sector include (i) reducing implementation delays by shortening procurement, strengthening the capacity and skills of project management units (PMUs), and reducing project start-up time; (ii) reducing the time for revising and finalizing designs and bidding documents; (iii) improving consultant quality; (iv) preparing more judicious covenants; (v) identifying and applying lessons; and (vi) strengthening risk analysis. The proposed decentralized approach is expected to address the lessons (i) and (ii) through reduction of the Government's approval steps. Other lessons will be studied during project preparation and adequately incorporated in the project design.

Development Impact

Development of Viet Tri, Hung Yen, and Dong Dang as economic centers in northern Viet Nam

Project Outcome

Description of Outcome
Improved urban infrastructure and municipal services in Viet Tri, Hung Yen, and Dong Dang
Progress Towards Outcome
Project team developed detailed project implementation plan, agreed by PMUs and consultants. Follow up letters sent to Chairman of each Province to follow up on target dates specified in DPIP.

Outputs and Implementation Progress

Description of Project Outputs
1. (Viet Tri) Urban roads connecting Noi Bai-Lao Cai expressway with the city center constructed. 2. (Viet Tri) Fleet and equipment provided. 3. (Hung Yen) Wastewater treatment plant and network built. 4. (Hung Yen) Infrastructure in old town upgraded. 5. (Hung Yen) Urban road constructed. 6. (Dong Dang) Huu Nghi border gate facilities improved. 7. (Dong Dang) Improved drainage and flood protection. 8. (Dong Dang) Strengthened efficiency and management capacity of local authorities.
Status of Implementation Progress (Outputs, Activities, and Issues)
1.1 (Package VT1/ICB) Bidding document approved by ADB on 22 April 2014. Contract signing expected in October 2014 1.2 (Package VT2/ICB) Bidding document being prepared. Contract signing expected in November 2014 1.3 (Package VT3/ICB) Bidding document approved by ADB on 14 March 2014. Contract signing expected in September 2014 2. (Package VT4/ICB) Bidding document approved by ADB on 11 March 2014. Contract signing expected in August 2014. 3. (co-funded by KEXIM) Procurement ongoing 4. (Package HY2/NCB) Bidding document to be issued. Contract signing expected in July 2014. 5. (Package HY3/NCB) Bidding document being prepared. Contract signing expected in November 2014. 6.1 (Package DD1b1/ICB) Bidding document approved by ADB on 15 April 2014. Contract signing expected in October 2014. 6.2 (Package DD1a/NCB) Bidding document issued on 4 January 2014. Contract signing expected in July 2014. 7. (Packages DD2a/NCB-Works and DD2b/NCB-Equipment) Bidding documents being prepared. Contracts signing expected in August and November 2014. 8. Consultants to recruit in 2015
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2011 Feb 21
Consulting Services
An estimated 425 person-months (73 international, 352 national) of consulting services are required to (i) provide technical support to ensure that project implementation will fully comply with ADB policy and operational requirements in terms of detailed designs, procurement, construction supervision, financial management, and social and environmental safeguard; (ii) design and conduct capacity strengthening programs in the areas of urban planning and management, public infrastructure planning and implementation, financial management, and environmental management; (iii) help local communities increase awareness of public health, environmental management, and traffic safety; and (iv) assist in analytical studies on specific topics including a long-term residential land development plan for Viet Tri, a detailed master plan for the old town in Hung Yen focusing on the overall management, legal aspects, and infrastructure planning, and potential for public-private partnership (PPP) at the Huu Nghi border gate facilities in Dong Dang. Consulting firms will be engaged using the quality- and cost-based selection (QCBS) method with a standard quality:cost ratio of 90:10.
Procurement
All procurement of goods and works will be in accordance with ADB s Procurement Guidelines. Civil works will be procured through international competitive bidding (ICB) procedures for packages exceeding $5,000,000 equivalent, and through national competitive bidding (NCB) procedures acceptable to ADB for packages up to and including $5,000,000 equivalent. Goods will be procured through ICB procedures for packages exceeding $500,000 equivalent, and through NCB procedures acceptable to ADB for packages up to and including $500,000 equivalent. For packages of $100,000 equivalent or less, shopping may be used.
Procurement and Consulting Notices
http://www.adb.org/projects/41462-013/business-opportunities

Timetable

Concept Clearance 12 Apr 2010
Fact-finding 09 May 2011 to 20 May 2011
Management Review Meeting 11 Aug 2011
Approval 08 Dec 2011
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
Cumulative Disbursements

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 2826

Contacts and Update Details

Responsible ADB Officer ()
Responsible ADB Department Southeast Asia Department
Responsible ADB Divisions Viet Nam Resident Mission
Executing Agencies Provincial People's Committee of Hung Yen
*

Provincial People's Committee of Lang Son
*

Provincial People's Committee of Phu Tho
*

Links

Project Website http://www.adb.org/projects/41462-013/main
List of Project Documents http://www.adb.org/projects/41462-013/documents