Viet Nam: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranche 1

Sovereign Project | 39500-023 Status: Approved


ADB is helping Viet Nam build a second mass rapid transit line in Ho Chi Minh City. The project will facilitate public transport access and connectivity in six central districts, encourage commuters to shift to public transport, and support low-carbon transport that reduces greenhouse gas emissions.

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Project Name Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranche 1
Project Number 39500-023
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2731-VIE: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - PFR 1
Ordinary capital resources US$ 40.00 million
Loan: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - PFR 1
KfW Bankengruppe US$ 36.40 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Transport - Urban public transport

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed project supports the development one of three priority urban rail MRT lines in HCMC to support the establishment of a sustainable urban transportation system. The construction of MRT Line 2 (MRT2) will facilitate public transport access and connectivity in six central districts of HCMC, promote a modal shift from private to public transport, and support low-carbon transport that reduces greenhouse gas emissions. The project directly supports implementation of the MRT2 project, and also the development of necessary facilites at the MRT2 depot.
Project Rationale and Linkage to Country/Regional Strategy

The Government of Viet Nam is well aware of the impact of inadequate transport infrastructure on economic growth. Without investment in public transport infrastructure in cities, economic growth will be constrained and the urban environment will degrade further. The Viet Nam Socio Economic Development Plan for 2011 2015 supports investments in public transport to promote economic growth and protect the environment. ADB's 2007 2010 Viet Nam country strategy and program supports the government's investment program to improve urban transport infrastructure and reduce transportation costs

Ho Chi Minh City (HCMC) is the largest city in Viet Nam, with a population of over 9 million that is expected to grow to 13.8 million by 2025. Private vehicles dominate transportation, but road infrastructure is reaching the saturation point, which will worsen as more motorbike users convert to cars with improving household incomes. Road network development faces space limitations and will not be able to meet the expected increase in demand, so private transport is not sustainable as the principal transportation mode. A well-integrated high-capacity public transport system is essential, and a rail mass rapid transit (MRT) system is most appropriate for densely populated cities. Without improvements in major public transport infrastructure, combined with policies that support a modal shift to public transport, HCMC's economic growth will be constrained by high logistics costs and severe congestion

Impact Competitive MRT2 services along the project corridor
Project Outcome
Description of Outcome Effective support for implementation of MRT2 infrastructure
Progress Toward Outcome Contract negotiations with selected consultant done.
Implementation Progress
Description of Project Outputs

Construction of initial site works and office facilities at depot

Provision of implementation support program

Social development and gender mainstreaming program implemented

Completion of integrated sustainable urban transport study

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

Construction of Office Contract ongoing

Project Management Implementation consultants services ongoing

Social Devlopment & Gender Mainstreaming Program consultant (CS3) recruited, contract signed.

Consultants for Integrated Sustainable Urban Transport (CS4) recruited, contract signed

New consuiltants for external audit (CS5), external environmental monitoring (CS6), external resettlement monitoring (CS7) and independent verification of engineering (CS8) are being prepared.

Geographical Location Ho Chi Minh City, Viet Nam
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects No major environmental impacts are anticipated to result due to implementation of Tranche 1 which has been classified by ADB as environment category B. An initial environmental examination (IEE) has been prepared based on ADB's Safeguard Policy Statement (2009). To ensure that the project is carried out in accordance with the EMP requirements, the environmental management plan (EMP) will be included in the tender documents and civil works contracts. MAUR will be assisted by the project management support consultant in monitoring the environmental performance of contractors. An environmental assessment and review framework (EARF), agreed by ADB and HCMC PC, has also been prepared which specifies the requirements for screening, categorization, environmental assessment, as well as preparation and implementation of safeguard plans for Tranche 2.
Involuntary Resettlement Tranche 1 land requirements for the Depot Priority Area consisted of the administrative area with an area of 2.7 ha. The land for Depot Priority Area was acquired under Tranche 1 of the UMRT2 Project over 2007 to 2009. The total land actually acquired of the 9 affected households was 4.21ha because their plots of land overlapped with the future land requirements for the Depot and resettlement site (required for Tranche 2 of the Project) and were acquired at that time. The resettlement impacts consisted of loss of land categorized as agricultural as well as loss of trees/crops and secondary structures. No persons were physically displaced. The involuntary resettlement impacts mitigation measures were addressed under a due diligence and corrective action plan (CAP) in 2010. The mitigation measures consisted of compensation at replacement cost for lost land (in either cash or land-for-land) and for non-land assets as well as assistance measures for livelihood restoration and bonuses for timely handing over of land. A due diligence review conducted 2011-2012 concluded that resettlement implementation was in compliance with the 2010 CAP.
Indigenous Peoples No indigenous people identified within the project area
Stakeholder Communication, Participation, and Consultation
During Project Design


Public consultations involving affected people have been conducted during IEE preparation in compliance with ADB's information disclosure and consultation requirements. The objectives of the stakeholder consultation process were to disseminate information on the Project for advance enabling works and Depot office construction and the expected impact, long-term as well as short-term, among primary and secondary stakeholders, and to gather information on relevant issues. Another important objective was to determine the extent of the concerns amongst the community, to address these in the project implementation and to suggest appropriate mitigation measures.

Involuntary Resettlement:

The MAUR and the People's Committees of Ho Chi Minh City and District 12 were consulted on ADB resettlement policy requirements and resettlement mitigation measures required for the project and endorsed the CAP. Affected persons were consulted during the preparation of the 2010 CAP by the District 12 Peoples Committee and resettlement consultants regarding resettlement impacts.

During Project Implementation

Environment and social safeguard monitoring reports will be publicly disclosed on ADB website. There is also a provision for a grievance redress mechanism based on existing legal provisions to facilitate resolution of complaints regarding environmental, resettlement and other impacts caused by the Project at no cost to the complainant and without retribution.

The CAP was disclosed to affected households following approval. Local authorities and affected households were consulted during the due diligence review of CAP implementation during 2011-2012.

Business Opportunities
Consulting Services

Three consulting contract packages:

CS1 - Project Management and Implementation Support to MAUR

CS3 - Social Development & Gender Mainstreaming Program

CS4 - Integrated Sustainable Urban Transport


Two ICB civil works contract packages:

CP1 - Initial depot works

CP2 - Main depot works

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 Committee
No. 1 Cuong Truong, Quoc te, District 3
Ho Chi Minh City
Viet Nam
Concept Clearance 02 Mar 2010
Fact Finding 22 Apr 2010 to 29 Apr 2010
MRM 20 Jul 2010
Approval 22 Dec 2010
Last Review Mission -
PDS Creation Date 17 Jul 2007
Last PDS Update 25 Sep 2015

Loan 2731-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Dec 2010 11 Mar 2011 20 Dec 2011 30 Jun 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 104.30 Cumulative Contract Awards
ADB 40.00 22 Dec 2010 18.06 0.00 45%
Counterpart 27.90 Cumulative Disbursements
Cofinancing 36.40 22 Dec 2010 4.68 0.00 12%

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

None currently available.

Related Publications

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