Project Name Sustainable Urban Transport for Ho Chi Minh Mass Rapid Transit Line 2
Project Number 45200-002
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3113-VIE: Sustainable Urban Transport for Ho Chi Minh City Mass Rapid Transit Line 2
Asian Development Fund US$ 10.00 million
Loan 8279-VIE: Sustainable Urban Transport for Ho Chi Minh City Mass Rapid Transit Line 2
ADB Clean Technology Fund US$ 48.95 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

Transport - Urban public transport

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The Project will develop an integrated public transport system in six districts of Ho Chi Minh City (HCMC) that will support effective utilization of HCMC Urban Mass Rapid Transit (MRT) Line 2 . Improved public transport will facilitate connectivity and greatly enhance access to transport services in five districts of HCMC, as well as support the HCMC Urban Transport Master Plan (HUTMP) objective of increasing public transport usage to over 40% of demand and reducing dependency on private vehicles.

The Project will provide infrastructure for improving accessibility to MRT2 stations, implement feeder bus links, integrated multi-modal stations with "park and ride" facilities where appropriate, infrastructure for improving accessibility to MRT2 stations as well as a parking plan for the city. Project management and institutional capacity building measures, together with expected policy and regulatory reforms, will also help achieve an improved public transport system and reduce GHG emissions. The project components, public transport services and other facilities will be designed to incorporate gender sensitive features that will compliment similar measures under the MRT2 project.

Project Rationale and Linkage to Country/Regional Strategy

The Government of Viet Nam is planning major public transport infrastructure investments intended to induce a substantive modal shift from private transport to public transport modes. Currently three MRT lines are being prepared in HCMCi, with all expecting to be operating by 2020. The Viet Nam Socio-Economic Development Plan for 2011-2015 supports transport sector investment to promote economic growth and protect the environment through a low carbon growth path. ADB's Viet Nam Country Strategy and Program 2012-2015 supports the Government's program to improve urban transport infrastructure and reduce transportation costs.

HCMC is moving into the higher growth period of transport urbanization, shifting increasingly from heavy usage of motorcycles to cars. Private vehicles dominate urban transportation, with motorcycles being the most prevalent means at about 85% share. High private vehicle usage has resulted in severe congestion; with many major routes have travel speeds below 10 kilometers per hour and poor road safety. The situation is worsening, with transport growth around 10% and more motorbike owners convert to cars . The existing public transport system consists of a badly integrated bus network that cannot compete with private transport modes. Traffic planning and management is weak and inadequate to effectively control traffic and discourages public transport. Importantly, there are no policy and regulatory measures to reduce private transport modes nor is there an attractive public transport system that can attract people using private vehicles.

HCMC People's Committee (HCMC PC) plans to develop in a MRT system with the first stage of three metro lines under implementation. In order the make the MRT lines viable, there is a need to design complimentary measures to ensure an integrated public transport system that is attractive, accessible and affordable. The Project will directly support integration of MRT2 as part of a multimodal, environmental friendly transport system to attract passengers from using individual private vehicles to urban public transport services to promote inclusive low carbon transport thus reducing greenhouse gas emissions and other environmental pollutions.

Impact An integrated and sustainable public transport system in six districts of HCMC
Project Outcome
Description of Outcome Improved access to MRT Line 2 stations and connectivity with other modes of public transport.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Establishment of MRT Line 2 station accessibility improvements

Establishment of public transport information systems

Enactment of public transport policy development program

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The project is assessed as category B for environment.

The draft initial environmental examination, which has been prepared based on ADB's Safeguard Policy Statement, has been reviewed by ADB and is being revised. The approved initial environmental examination will be disclosed on the ADB website upon receipt from the HCMC People's Committee.

No natural ecosystems exist in the project area, which is heavily populated. Land use is predominantly commercial or residential. The project will not involve major civil works and is not likely to result to significant adverse environmental impacts during construction and operation. Public consultations with affected people were conducted during preparation of the initial environmental examination, in compliance with ADB's information disclosure and consultation requirements. The implementing agency will ensure that the environmental management plan is included in all bid documents.

A grievance redress mechanism will be established prior to commencement of site works. The construction supervision consultant will conduct environmental management training for implementing agency in monitoring and reporting and help monitor the environmental performance of contractors.

Involuntary Resettlement

The project is assessed as category B for involuntary resettlement.

The 1.6 hectares of land acquisition required will affect only government-owned land. An estimated 63 roadside stalls and small shops with 77 employees near three MRT Line 2 stations will be affected, as well as two gas stations owned by the government and employing 23 people.

A resettlement plan has been prepared that is consistent with ADB's Safeguard Policy Statement and relevant legislation and policies in Viet Nam. The draft resettlement plan was posted on the ADB website on 1 August 2013 and will be updated following detailed design. Affected businesses will be provided with compensation at replacement cost and transitional and relocation assistance. One workshop and nine consultation meetings in which 283 affected business owners and employees participated were conducted in December 2012, January 2013, March 2013 and July 2013. The meetings provided an overview of the project and outlined key elements of the resettlement plan, such as anticipated impacts, mitigation measures, entitlements, consultation, and the grievance redress mechanism. In July 2013, key information from the draft resettlement plan was disclosed to all 65 affected business establishments. The agreed resettlement plan will be made available in the district offices and on ADB's website. All social monitoring reports will be disclosed.

Indigenous Peoples

The project is assessed as category C for indigenous peoples' safeguards.

Due diligence has confirmed that there are no ethnic minority communities in the project area

Stakeholder Communication, Participation, and Consultation
During Project Design

Women, students, children, and older people are more inclined to use public transport than other social groups and are expected to benefit the most from the improved transportation services and lower costs.

The Women's Union has been identified as the focal point to guide the development of gender-sensitive measures.

Through government community awareness program under the MRT Line 2 project, extensive public communications about this project will be made available in a timely manner to ensure that all stakeholders and interested civil society organizations can effectively participate in the consultations and meetings to be conducted.

During Project Implementation TBD
Business Opportunities
Consulting Services

Four consulting service packages;

CS01: Design and supervision

CS02: Multi-modal demand and traffic platform

CS03: Bus information sysytem and street management

CS04: Urban transport sector development

Procurement

Five civil works and two equipment packages:

CP01: Infrastructure and Parking 1

CP02: Infrastructure and Parking 2

CP03: Bus infrastructure, entrance and landscaping

CP04: Traffic management

CP05: Subway and footbridge

EQ01: Accessibility improvement

EQ02: Public transport measures

Responsible ADB Officer Yasushi Tanaka
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Ho Chi Minh City People's CommitteePMUCTN@HCM.VNN.VNNo. 1 Cuong Truong, Quoc te, District 3
Ho Chi Minh City
Viet Nam
Timetable
Concept Clearance 18 Oct 2011
Fact Finding 09 Jul 2013 to 16 Jul 2013
MRM 02 Aug 2013
Approval 20 Feb 2014
Last Review Mission -
Last PDS Update 31 Mar 2015

LoanĀ 3113-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Feb 2014 18 Jul 2014 14 Apr 2015 30 Jun 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 16.05 Cumulative Contract Awards
ADB 10.00 20 Feb 2014 0.00 0.00 0%
Counterpart 6.05 Cumulative Disbursements
Cofinancing 0.00 20 Feb 2014 0.00 0.00 0%

LoanĀ 8279-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Feb 2014 18 Jul 2014 14 Apr 2015 30 Jun 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 48.95 Cumulative Contract Awards
ADB 0.00 20 Feb 2014 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 48.95 20 Feb 2014 0.00 0.07 0%

This project data sheet was generated from http://www.adb.org/projects/45200-002/main on 05 September 2015