Regional: VIE: GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project

Sovereign Project | 39175-013

Summary

The Project is designed to promote sustainable economic growth by rehabilitating 285 kilometers of railway line from Yen Vien station in the the northern suburbs of Hanoi to Lao Cai on the border with the People's Republic of China (the PRC). The Project will develop a safe, efficient, and environmentally sustainable railway transport system in the northwest region of Viet Nam, enhance connectivity with the PRC through the Kunming-Hai Phong transport corridor, and assist with institutional reform of the railway subsector.

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Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name VIE: GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project
Project Number 39175-013
Country Regional
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2302-REG: VIE: GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project
Asian Development Fund US$ 60.00 million
Loan 8227-REG: VIE: GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project
Agence Francaise de Developpement US$ 40.00 million
Loan: VIE: GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project
Treasury & Eco Policy Gen Directorate, MOF, FRA US$ 37.50 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Rail transport (non-urban)
Gender Equity and Mainstreaming Some gender elements
Description The Project is designed to promote sustainable economic growth by rehabilitating 285 kilometers of railway line from Yen Vien station in the the northern suburbs of Hanoi to Lao Cai on the border with the People's Republic of China (the PRC). The Project will develop a safe, efficient, and environmentally sustainable railway transport system in the northwest region of Viet Nam, enhance connectivity with the PRC through the Kunming-Hai Phong transport corridor, and assist with institutional reform of the railway subsector.
Project Rationale and Linkage to Country/Regional Strategy

The Hai Phong to Lao Cai railway forms part of the Kunming-Haiphong transport corridor linking Yunna province in the PRC with Viet Nam. Minimal investments in improvements and maintenance have meant that the railway bed and track have deteriorated and no longer meet capacity and safety requirements. The Project will rehabilitate the rail system to ensure it is capable of operating safely and efficiently. Increasing capacity at stations and main terminal points and carrying out strategic rehabilitation will permit the use of heavier and longer trains and an increase in the number of trains using the railway line. The Project will contribute to the Asian Development Bank's support for cooperation in the Greater Mekong Subregion and for the Government's investment in transport infrastructure.

The railway from Yen Vien, near Hanoi, to Lao Cai on the border with the PRC is part of the Kunming-Hai Phong transport corridor, which is a strategic link in the GMS north-south corridor. Developing the transport corridor is a high-priority subregional transport project under the GMS Economic Cooperation Program, which aims to develop efficient multimodal infrastructure links between the GMS countries. The proposed Project will restore and expand the capacity of a long-established link between Yunnan province in the southwest of the PRC and the strategic port of Hai Phong in Viet Nam on the Gulf of Tonkin. Landlocked Yunnan province has a growing need for efficient transport routes to sea ports for the export of its goods.

Impact Increased cross-border trade with Yunnan province in the PRC.
Project Outcome
Description of Outcome More efficient rail transportation system
Progress Toward Outcome Upon completion of all contracts designed to rehabilitate the railway system covered by this Project, it is expected that the rail transportation system would become more efficient. All contracts (CP1, CP2,CP3 and CP5) have been awarded and works ongoing satifactorily. The Project is now on track. Overall progress is about 90% and almost on schedule. The Project is expected to close as scheduled in 2015.
Implementation Progress
Description of Project Outputs

Railway infrastructure rehabilitation and upgrading, along with all associated resettlement and social mitigation activities on Yen Vien-Lao Cai railway line

Financial management capacity of VNR improved

Status of Implementation Progress (Outputs, Activities, and Issues) On 30 November 2011, ADB approved the extension of the Loan closing date by three years from 1 January 2013 until 31 December 2015. Works are expected to be completed within the loan period.
Geographical Location Greater Mekong Subregion
Safeguard Categories
Environment B
Involuntary Resettlement
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The Government will engage an international consulting firm supported by national consultants for detailed project design, preparation of technical specifications and bid documents, construction supervision, and quality assurance. Additional responsibilities include environmental supervision and management, updating, implementation and monitoring of the resettlement plan, socioeconomic impact assessment, and project performance monitoring. It is envisaged that 200 person-months of international consultants and 524 person-months of national consultants will be required. International consultants for the Project will be recruited using the quality- and cost-based method and a full technical proposal in accordance with ADB's Guidelines on the use of Consultants.
Procurement The procurement, financed from the ADB and AFD loans, will be done in accordance with ADB's Procurement Guidelines. Civil works contracts have been packages according to three subsections of the Project route. Each package will include all works on the subsection, including track, bridges, realignment, embankment stabilization, station upgrading, and safety works. The civil works contracts will be procured by international competitive bidding (ICB) among prequalified bidders. The procurement of the DGTPE-financed package of rails, track switches, and fittings will be undertaken in accordance with the Government of France's procurement rules. Other supply contracts that are not expected to exceed $100,000 in value will be procured through shopping.
Responsible ADB Officer Arto T. Ahonen
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Viet Nam Railways (VNR)Tran Quoc Dong95-97 Le Duan Street, Hanoi, Viet Nam
Timetable
Concept Clearance 05 Aug 2005
Fact Finding 15 May 2006 to 26 May 2006
MRM 10 Aug 2006
Approval 21 Dec 2006
Last Review Mission -
PDS Creation Date 03 May 2006
Last PDS Update 04 Mar 2015

Loan

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 57.50 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 20.00 Cumulative Disbursements
Cofinancing 37.50 - 0.00 0.00 %

Loan 2302-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Dec 2006 16 Jan 2007 25 Sep 2007 31 Dec 2012 31 Dec 2015 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 117.50 Cumulative Contract Awards
ADB 60.00 19 Dec 2006 55.85 0.00 97%
Counterpart 20.00 Cumulative Disbursements
Cofinancing 37.50 19 Dec 2006 26.15 0.00 45%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Loan 8227-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Dec 2006 08 Feb 2007 25 May 2007 31 Dec 2012 30 Apr 2014 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 40.00 Cumulative Contract Awards
ADB 0.00 21 Dec 2006 0.00 42.52 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 40.00 21 Dec 2006 0.00 42.52 100%

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project: Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Jan 2015
GMS Kunming-Haiphong Transport Corridor - Yen Vien-Lao Cai Railway Upgrading Project: Semiannual Resettlement Monitoring Report (July-December 2014) Social Monitoring Reports Dec 2014
GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jul 2014
Yen Vien-Lao Cai Railway Upgrading Project: Semiannual Resettlement Monitoring Report (January to June 2014) Social Monitoring Reports Jun 2014
Yen Vien-Lao Cai Railway Upgrading Project: Lao Cai Province Third External Monitoring Report on Resettlement Plan Implementation Social Monitoring Reports Jun 2014
Yen Vien-Lao Cai Railway Upgrading Project: Phu Tho Province Second External Monitoring Report on Resettlement Plan Implementation Social Monitoring Reports Jun 2014
Yen Vien-Lao Cai Railway Upgrading Project: Yen Bai Province Fourth External Monitoring Report on Resettlement Plan Implementation Social Monitoring Reports Jun 2014
GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project (Construction Package 1, 2 and 3) Social Monitoring Reports Feb 2014
GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Jan 2014
GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project, CP1 Package, Phu Tho Province Social Monitoring Reports Jan 2014
GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project, CP3 Package, Lao Cai Province Social Monitoring Reports Jan 2014
Kunming-Haiphong Transport Corridor Project GMS Hanoi-Lao Cai Railway Upgrading: Lot 3 - Lao Cai Province Resettlement Plans Nov 2013
GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project, CP2 Package, Yen Bai Province Social Monitoring Reports Sep 2013
GMS Kunming-Hai Phong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project: Yen Bai Province Social Monitoring Reports Sep 2013
Kunming-Haiphong Transport Corridor Project: GMS Hanoi-Lao Cai Railway Upgrading - Resettlement Plan for Vinh Phuc Province Resettlement Plans Sep 2013
Kunming-Haiphong Transport Corridor Project: GMS Hanoi-Lao Cai Railway Upgrading - Resettlement Plan for Phu Tho Province Resettlement Plans Sep 2013
GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Jul 2013
GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project: Environmental Monitoring Report (August 2012 - January 2013) Environmental Monitoring Reports Feb 2013
VIE: GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project: External Monitoring Report on Resettlement Plan Implementation - Lao Cai Province Social Monitoring Reports Sep 2012
Yen Vien-Lao Cai Railway Upgrading Project: Internal Report on Resettlement Implementation Social Monitoring Reports Aug 2012
GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project: Environmental Monitoring Report (January-June 2012) Environmental Monitoring Reports Jul 2012
VIE: GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project: External Monitoring Report on Resettlement Plan Implementation - Yen Bai Province Social Monitoring Reports Feb 2012
VIE: GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project: Initial Report on Resettlement Monitoring Social Monitoring Reports Dec 2011
GMS Kunming-Haiphong Transport Corridor Project: Hanoi-Lao Cai Railway Upgrading (CP2 - Yen Bai Province) Resettlement Plans Oct 2011
Greater Mekong Subregion Kunming-Hai Phong Transport Corridor: Yen Vien - Lao Cai Railway Upgrading Project Resettlement Plans Nov 2006

Evaluation Documents

See also: Independent Evaluation

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