Viet Nam: Phuoc Hoa Water Resources

Sovereign Project | 29296-013

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Procurement Documents

Title Document Date
Phuoc Hoa Water Resources Project Sep 2013

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Project Name Phuoc Hoa Water Resources
Project Number 29296-013
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2025-VIE: Phuoc Hoa Water Resources
Asian Development Fund US$ 90.00 million
Loan: Phuoc Hoa Water Resources
Agence Francaise de Developpement US$ 34.00 million
Loan 2747-VIE: Phuoc Hoa Water Resources Management (Supplementary)
Asian Development Fund US$ 60.00 million
Loan: Phuoc Hoa Water Resources Management (Supplementary)
Agence Francaise de Developpement US$ 25.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Sector / Subsector Agriculture, natural resources and rural development - Rural water policy, institutional and capacity development - Water-based natural resources management
Gender Equity and Mainstreaming Effective gender mainstreaming
Description Water resources development and management are key areas required to support the current growth in Viet Nam. Expansion of irrigated area is high priority of Government, particularly in rural areas unaffected by industrial and urban expansion. Control of salinity intrusion in the rivers is essential for municipal water supply. The Project will develop the water resources of the Song Be river and transfer it to Saigon and Vam Co Dong rivers for irrigation to increase agricultural production, provide bulk water for Ho Chi Minh City (HCMC), and control saline intrusion thereby providing social, economic and environmental benefits.
Project Rationale and Linkage to Country/Regional Strategy

Viet Nam ranks among the poorest countries in the region. Sustained economic growth and poverty reduction depend on improved access to and management of the country's water resources. This is required to ensure efficient use and availability of water supplies for agricultural and industrial development, for increased municipal and domestic water demands, and for flood control.

The Dong Nai river basin has a catchment area of 47,300 square kilometers, making it the third largest in Vietnam. The basin contains the country's largest urban and industrial development areas that are expanding, and water demands have increased and will continue to increase. Shortages of fresh water are being experienced and the existing water resource management practices are unsustainable. This is constraining existing and future development in HCMC and its surrounding provinces.

To meet the increasing water demands, the Government has adopted a holistic approach in determining suitable development options. A first key step was the Dong Nai Water Resources Master Plan (prepared in 1996) which concluded that the development objectives within the Dong Nai basin can not be met without further regulating Be river and transferring water to the Saigon river to control salinity intrusion and provide water for urban, industrial, and agricultural uses. The second important step is the Government's proposal to improve the efficiency of existing water resource systems.

Impact Sustainable economic growth in rural, urban, and industrial areas in HCMC and surrounding provinces in accordance with the regional master plan
Project Outcome
Description of Outcome Additional water supplies in the Saigon and VCD river basins for irrigation, DMI, and salinity control efficiently provided and sustainably ensured
Progress Toward Outcome Achieved in 2011 after construction of the Phuoc Hoa barrage and transfer canal was completed and put into operation since December 2011.
Implementation Progress
Description of Project Outputs

1. Strengthened capacity of water-related organizations in the Phouc Hoa project area

2. On-farm irrigation systems developed and intensified agriculture practices adopted

3. Project affected households fully resettled and compensated

4. Environmental management plan successfully implemented

5. Basin transfer facilities operating, and irrigation and DMI water supplied

6. Irrigation facilities constructed and operating

Status of Implementation Progress (Outputs, Activities, and Issues)

1. Partially achieved, as only basin transfer facilities and Tan Bien main canal so far put into operation. Construction of Duc Hoa main canal expected to be completed by end of 2014 or early 2015.

Contractor did not hand over an O&M Manual for Phuoc Hoa Headworks.

In late 2009, BVI Consultants drafted a 9-part Sustainable Systems Management (SSM) Plan, of which Parts 1-8 were sent to the members of the TF (including IMC representatives in the TF) on 5 February 2010 for comment. During 2010, the SSM Plan was systematically updated and improved and Parts 1, 2 & 3 of the SSM Plan were sent to ICMB9 in June 2011 for review, but no further action was taken.

The whole SMP has not been implemented, as proposed by BVI Consultants, because further consulting services, equipment and funding were needed, which were not then available, and it is now envisaged by ICMB9 as a long-term goal towards which progress may be steadily made, year by year.

A proposal from SIWRR to AFD for O&M Regulations and Management Model for Dau Tieng Phuoc Hoa Water Resources System is under preparation.

Construction of primary, secondary and tertiary canals (NCB contracts) expected to be completed between December 2014 and April 2015.

2. Partly achieved. By April 2014, 86 Tertiary Units (TU) had been established in Tan Bien ISP and 120 TUs in Duc Hoa ISP, and some WUGs were formed, but they are not effective yet. A TU is a unit of command area that abstracts water from a tertiary canal.

The target of 50% of farmers adopting crop diversification by 2016 is rather ambitious. For example, in Duc Hoa, Winter-Spring season, farmers grow rice 44%, corn 16%, and peanuts 35.8%. The only high value crops grown are vegetables, 2%, and a few farmers have invested in flowers and orchids.

Therefore, the target percentage of diversified and higher valued crops is unlikely to increase to 50% within the next few years, even if additional water were available now.

3. Partly achieved but with 1-year delay. By April 2014, 7,611 AHs had been resettled and compensated without livelihoods loss.

Compensation to all AHs was fully paid by March 2014.

Social Support for AHs expected to be completed by 2017, funded by the AFD loan. Social Support includes 3 or 4 year term school scholarship credit programs.

4. Partly achieved. Implementation of the EMP is on-going.

Package OP1 proposed to be carried forward into the 2015-2017 period to cover the remaining Phase 2 construction activities.

Package OP2 to be carried forward to cover post-construction operation of Long An Water Supply Station during the remainder of Phase 2 up to 2017.

5. Fully achieved, but with delay of five months, as construction of the Phuoc Hoa barrage and transfer canal was completed in December 2011.

6. In the PAM (2004) an additional 48,130 ha of land were to be receive stable irrigation supplies by 2011.

In September 2008 the area was reduced to 29,980 ha (MARD Decision 2851), mostly by cancelling Binh Long ISP.

In December 2010 (MARD Decision 3415), the area was reduced to 20,545 ha (Tan Bien 6,725 ha and Duc Hoa 13,821 ha), with an allowance of 900 ha for Thai My irrigation area.

In MARD Decision 3184 (Dec.2012), the area was further reduced to 16,588 ha (TB 6,408 ha and DH 10,180 ha).

Reductions were due to urbanisation, avoiding acid sulphate soils, and conversion of rice land to rubber plantations. An additional 900 ha in Thai My irrigation area (within Duc Hoa ISP) may be included during 2015-2017, if funds are available.

On-farm canal networks to be constructed from 2015 onwards by WUGs under guidance of OSDP Consultants and stakeholders, such as IMCs / IMEs / ISs, funded by AFD loan.

Geographical Location Dong Nai River Basin, South Viet Nam
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects

The final environment management plan workshop was organized by ICMB9 on 11 September 2014 to review EMP implementation, hand over the results of EMPs to the relevant Vietnamese agencies, identify the gap and suggest necessarily continuous EMP implementation during AFD loan until to 2017.

Although the MT2 Consultant has been completed but Revision Provincial Land Use Planning to include 590 area protection forestry of Phuoc Hoa submergence area and Protection Forestation Program have not been approved by Binh Phuoc Provincial People Committee (PPC).

There is a problem in operation of the fish pass, in which very little water could be pass through when the water is kept at the dead level of 42.5 m during dry season. This causes the function of the fish pass for maintaining aqua- biodiversity and minimum water flow of 14 m3/s, in which 12.8 m3/s released from after the barrage and 1.2 m3/s released from the fish pass, have not been met.

02 of salinity monitoring stations have been handed over to Dong Nai and Binh Duong DONREs for operation but 01 in Long An has not been handed over because the Meteo-hydrological Central has declined to receive this station as committed before.

There is a concern about the gap of capacity of relevant government agencies in continuous EMP implementation and not enough series of hydrological and water quality data of Phuoc Hoa Reservoir at full capacity operation. Relevant government agencies also are not aware for the integration of Phuoc Hoa - Dau Tieng basin environment monitoring program.

Involuntary Resettlement Generally, resettlement implementation has been basically completed in all subprojects, except Tay Ninh subproject payment for 56 affected households (AHs) in 01 drainage canal is ongoing. In Binh Phuoc province, the payment for AHs whose additional areas of land are flooded by the reservoir has not been done. In Cu Chi district, HCMC, DMS for Thai My irrigation area funded by AFD is ongoing.
Indigenous Peoples

The Project impacts on 303 ethnic minority households, of which 03 households displaced. The ethnic minority issues, however, are already being addressed in Phase 1, for which an EMDP has already been approved and is under implementation. The Support for On-Farm and Social Development Program (OSDP) which is prioritized for affected ethnic minority communities was implemented from June 2010.

For the Phase 2 under the Supplementary Loan, for completion of irrigation development in Long An and Tay Ninh Provinces, there are only about five (05) affected ethnic minority households and it is anticipated that there will be no displaced ethnic minority households in Phase 2.

Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

3. Participatory Processes

14. The Mission reminded ICMB9 of the necessity for two complementary approaches to the participative process: (i) involving all stakeholders including provincial IMCs, WUOs, DARDs, etc., to enhance capacity building, and provide linkage between the irrigation canal designs with the demand, and facilitate the share of responsibilities; and (ii) to establish and strengthen Water User Groups, the ultimate beneficiaries of the irrigation works. The Mission emphasized that none of these approaches can be exclusive.

15. Tan Bien irrigation system. The OSDP consultants have successfully completed a further set of farmer meetings to increase the farmers' understanding of the project and have carried out preparatory work regarding the formation of Water User Groups (WUGs). Agricultural support activities are continuing and preparatory work is underway to establish a pilot agricultural area in Phuoc Vinh Commune, in Chau Thanh District. The Mission agreed in principle that farmer participation should continue (i) through the construction phase of the project with the OSDP consultants providing limited inputs including further agricultural extension, and (ii) through the start-up of the WUG operations and maintenance when water is provided to the tertiary unit with the OSDP consultants providing greater inputs focusing on the strengthening of WUGs. A proposal for an extension of the OSDP consultant's contract and a cost estimate for the additional work are to be submitted to AFD for their review.

16. Long An irrigation system. The PST Design and OSDP consultants have continued with the participatory process and the farmer groups have a better understanding of the project. Substantial work has been carried out by the PPMB and OSDP consultants in order to get the farmers' agreements on canal layouts and tertiary boundaries. The Mission noted that tertiary units were to be of a size manageable by a WUG of about 75 to 100 hectares and that some tertiary units were too large. It was recognized that by decreasing tertiary unit size there would be an increase in cost of the tertiary canals. The Mission advised that the project should implement a complete system and if budgets were not sufficient, then the scope of the Project should be decreased. Possible ways of decreasing the scope were investigated including the deletion of a portion of the irrigation system in the northwest area that was recently added to the system. the PPMB are to investigate options and present a detailed proposal on this topic.

Business Opportunities
Consulting Services The Project will require approximately 961 person-months of consulting services: 214 international, and 747 domestic. Expertise will be required in the fields of integrated management, institutional development, participatory irrigation, resettlement, irrigation, social support (including gender), finance, environmental management, agriculture, monitoring and evaluation, water systems management, hydraulic structures design, irrigation and drainage system design, geotechnical and mechanical engineering, construction supervision, and contract management. Consultants financed under the loan will be engaged in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for engaging domestic consultants. Consultants will be recruited using ADB's quality and cost-based selection method.
Procurement Goods and services financed by ADB will be procured in accordance with ADB's Guidelines for Procurement. Civil works contracts for major works estimated to cost more than $2 million equivalent will be procured through ICB among prequalified firms. Civil works contracts estimated to cost $2 million or less will be procured through local competitive bidding (LCB) procedures. Equipment packages over $500,000 will be procured through ICB while smaller packages will be financed through international shopping or direct purchase.
Responsible ADB Officer Huong Thi Lan Khuc
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Ministry of Agriculture and Rural DevelopmentLe Trung Thanhthanh_leon1951@yahoo.comNo. 2 Truong Sa Street, HCMC, Vietnam
Concept Clearance 08 Mar 1999
Fact Finding 22 Apr 2002 to 10 May 2002
MRM 25 Oct 2002
Approval 27 Nov 2003
Last Review Mission -
PDS Creation Date 12 Dec 2006
Last PDS Update 31 Mar 2015


Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 145.60 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 86.60 Cumulative Disbursements
Cofinancing 59.00 - 0.00 0.00 %

Loan 2025-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Nov 2003 08 Apr 2004 23 Aug 2004 31 Mar 2011 30 Sep 2014 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 164.00 Cumulative Contract Awards
ADB 90.00 27 Nov 2003 93.74 0.00 97%
Counterpart 40.00 Cumulative Disbursements
Cofinancing 34.00 27 Nov 2003 96.67 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Loan 2747-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Mar 2011 27 May 2011 30 Sep 2011 30 Sep 2014 30 Jun 2015 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 131.60 Cumulative Contract Awards
ADB 60.00 31 Mar 2011 47.97 0.00 99%
Counterpart 46.60 Cumulative Disbursements
Cofinancing 25.00 31 Mar 2011 48.28 0.00 99%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory
Title Document Type Document Date
Phuoc Hoa Water Resources Project Procurement Plans Sep 2013
Phuoc Hua Water Resources Project Reports and Recommendations of the President Oct 2003

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Phuoc Hoa Water Resources: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Dec 2014
Phuoc Hoa Water Resources Project: Thai My Irrigation Area-Cu Chi District Resettlement Plans Mar 2014
Phuoc Hoa Water Resources: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Mar 2014
Phuoc Hoa Water Resources Project: Tan Bien Irrigation Area Resettlement Plans Dec 2013
Phuoc Hoa Water Resources: Environmental Monitoring Report (July-December 2012) Environmental Monitoring Reports Jun 2013
Phuoc Hoa Water Resources: Environmental Monitoring Report (January-June 2012) Environmental Monitoring Reports Nov 2012
Phuoc Hoa Water Resources: Environmental Monitoring Report (January-June 2011) Environmental Monitoring Reports Nov 2012
Phuoc Hoa Water Resources: Environmental Monitoring Report (July - December 2011) Environmental Monitoring Reports Sep 2012
Phuoc Hoa Water Resources Project: Resettlement Independent Monitoring Report (Mission 2 - Phase 2) Social Monitoring Reports Aug 2012
Phuoc Hoa Water Resources Project: Duc Hoa main canal - Long An section and borrow area no. 1, 2 & 3 Resettlement Plans Jul 2012
Phuoc Hoa Water Resources Project: Resettlement Plan for Duc Hoa Main Canal-Tay Ninh Section Resettlement Planning Documents Apr 2012
Phuoc Hoa Water Resources Project Environmental Impact Assessments Aug 2010
Phuoc Hoa Water Resources Project Summary Environmental Impact Assessments May 2003

Evaluation Documents

See also: Independent Evaluation

No documents found.

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