Viet Nam: Central Region Urban Environmental Improvement

Sovereign Project | 34355-013 Status: Closed

Latest Project Documents

Project Results



households with new or improved sanitation



cubic million/day of waste water treatment capacity added or improved

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Project Name Central Region Urban Environmental Improvement
Project Number 34355-013
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2034-VIE: Central Region Urban Environmental Improvement
Asian Development Fund US$ 44.00 million
Loan: Central Region Urban Environmental Improvement
Agence Francaise de Developpement US$ 33.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Water and other urban infrastructure and services - Urban policy, institutional and capacity development

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The long-term project goals are to improve the quality of life and health status of urban residents and reduce poverty in the six projects towns and surrounding areas; and promote balanced regional economic development and reduce migration from the central region Hanoi and Ho Chi Minh City. The objective of the Project is to improve urban environmental conditions in project towns. The Project comprises: Part A-awareness and pro-poor sanitation, Part B-drainage and flood protection, Part C-wastewater and public sanitation; Part D-solid waste management; and Part E-implementation assistance and institutional strengthening program.
Project Rationale and Linkage to Country/Regional Strategy

Following many years of rapid urbanization, the level of investment made for maintenance, repairs, and new capital works over the past decade in the urban sector has not been sufficient to provide the necessary urban infrastructure. Weak institutions, lack of qualified human resources, financial constraints, lack of community participation, and slow implementation of an appropriate legal framework for the urban sector have contributed to the low coverage and inefficiency of urban services. This situation has led to serious deficiencies in the availability of infrastructure and access to municipal services in urban areas, particularly for the poor. Although the Government and several funding agencies, including ADB, have made efforts in recent years to improve the situation in the larger urban centers, provincial towns, particularly in the Central Region, have received much less attention, except for the improvement of water supply systems. As a result, urban water pollution in project towns in the Central Region has increased and flooding occurs frequently.

The Project helps to (i) improve the quality of life and public health status of urban residents and reduce pollution in the streets, canals, waterways and lakes, reduce poverty in the six project towns and surrounding areas; and (ii) to promote balanced regional economic development and reduce migration from the central region to Hanoi and Ho chi Minh City.


1. To improve the quality of life and health status of urban residents and reduce poverty in the six project towns and surrounding areas

2. To promote balanced regional economic development and reduce migration from the central region to Hanoi and Ho Chi Minh City

Project Outcome
Description of Outcome To improve urban environmental conditions in the six project towns
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

(a) Expanded and upgraded urban environmental infrastructure

(b) Improved autonomy, managerial, and technical capacity of the URENCOs

(c) Improved urban management and planning capacities of TPCs

(d) Strengthened urban management policies through support to the newly established Department of Urban Infrastructure in the Ministry of Construction (MOC)

(e) Development of appropriate cost-recovery mechanisms to ensure sustainability of urban environmental services

(f) Increased community participation in the planning and management of urban services, particularly by the poor

(g) Enhanced public health awareness

(h) Enhanced role of women in urban management and urban institutions

Status of Implementation Progress (Outputs, Activities, and Issues) Project activites were completed and outputs were achieved.
Geographical Location Provincial capital towns of Thanh Hoa, Ha Tinh, Tam Ky, Dong Ha, Quang Ngai and Lang Co district.
Safeguard Categories
Environment B
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects

The Project is classified as environment category B. The Project will not result in any serious negative environmental impacts because proposed project activities are designed to improve the quality of life and physical environment of the urban population, and the adverse environmental impacts arising from the design, construction, and operation of proposed

activities will be temporary, minor, localized, and can be minimized to acceptable levels through mitigation measures and monitoring programs identified in an initial environmental examination (IEE).

Involuntary Resettlement The Project will involve land acquisition and resettlement of people and businesses.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design All project components were formulated after discussions with concerned government officials and consultations with affected communities and beneficiaries. The Project is designed so that it is responsive to the communities' needs, will function on a sustainable basis, and will have no adverse social or environmental impacts. The scope of Part A of the Project was tightened as a result of clear identification of the primary stakeholders, and extensive consultation with project beneficiaries through participatory approaches.
During Project Implementation The Project will promote grassroots participation in urban infrastructure planning and environmental improvements by providing community groups with adequate information about community and household sanitation programs; sufficient opportunities to participate during project preparation, implementation, maintenance, and operations, and concerted capacity building for poor and low-income communities in developing ownership and self-reliance. Subsequent mechanisms to increase community participation will enable community groups and individual households to set their own priorities for urban environmental improvements and to utilize and manage sanitation and solid waste subcomponents based on collective resources and contributions.
Business Opportunities
Consulting Services About 1,220 person months of consulting services (116 person-months international and 1,104 person-months domestic) from an international consulting firm in association with domestic consultants will be recruited by the Project Coordination Unit in the Ministry of Construction using quality- and cost-based selection method. Consultants will be required in project management, resettlement, gender, and environmental aspects, and design and construction supervision of urban infrastructure. In addition, the consultants will support to institutional strengthening program through the preparation and delivery of on-the-job training and capacity building programs. Consultants will also support Ministry of Construction's urban infrastructure department in preparing guidelines on institutional aspects of urban management of provincial towns, and guidelines on drainage, sanitation, and solid waste tariffs.
Procurement International competitive bidding (ICB) procedures will be used for major civil works contracts estimated to cost over $2.0 million and supply contracts valued over $500,000. The ICB contracts are expected to include separate contracts in each province for building drainage, flood protection, and wastewater works; O&M equipment for solid waste management; and O&M equipment for drainage and sanitation. Procurement of minor civil works will be undertaken through local competitive bidding in accordance with procedures acceptable to ADB. International shopping procedures will be followed for materials and equipment packages estimated to cost more than $100,000 equivalent but less than $500,000 equivalent. For the community-based sanitation component under Part A, where most subprojects will be relatively small, and scattered throughout the towns, the Project will consider funding suitable nongovernmental organizations or mass organizations to work in a collaborative and participatory manner with local communities.
Responsible ADB Officer Hoang Nhat Do
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Provincial People's Committee of Quang TriProvince
Mr. Nguyen Duc Cuong
45 Hung Vuong Road, Dong Ha, Quang Tri, Viet Nam
Provincial People's Committee-Thua ThienHueProvinc
Mr. Nguyen Xuan Ly
14 Le Loi Road, Hue City, Thua Thien Hue, Viet Nam
Provincial People's Committee of Ha Tinh
Mr. Ngo Duc Huy
Nguyen Tat Thanh Road, Ha Tinh, Viet Nam
Provincial People's Committee of Quang Ngai Prvnce
Mr. Nguyen Xuan Hue
52 Hung Vuong Road, Quang Ngai, Viet Nam
Provincial People's Committee of Quang Nam
Mr. Le Minh Anh
1 Hung Vuong Road, Quang Nam, Viet Nam
Provincial People's Committee of Thanh Hoa Prvnce
Mr. Le The Bac
35 Le Loi Avenue, Thanh Hoa City, Viet Nam
Concept Clearance 05 May 2000
Fact Finding 14 Jul 2003 to 25 Jul 2003
MRM 25 Aug 2003
Approval 08 Dec 2003
Last Review Mission -
PDS Creation Date 05 Dec 2006
Last PDS Update 26 Sep 2012

Loan 2034-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2003 06 Feb 2004 23 Jun 2004 31 Dec 2009 05 Apr 2011 25 Apr 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 97.20 Cumulative Contract Awards
ADB 44.00 08 Dec 2003 39.87 0.00 99%
Counterpart 20.20 Cumulative Disbursements
Cofinancing 33.00 08 Dec 2003 40.37 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory
Title Document Type Document Date
Central Region Urban Environmental Improvement Project Project/Program Completion Reports Apr 2013
Central Region Urban Environmental Improvement Project Reports and Recommendations of the President Nov 2003

Safeguard Documents

See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Viet Nam: Central Region Urban Environmental Improvement Project Validations of Project Completion Reports Nov 2014

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