Viet Nam: Hanoi Metro Rail System

Sovereign Project | 40080-012

Summary

The PPTA will contribute, along with complementary bilateral intervention on the first LRT line, to a safe, clean and efficient urban transport system reducing reliance on private modes of travel, contributing to urban livability and accommodating sustainable growth.

The TA will be articulated in two parts: (a) Part I: Optimization of the counterpart financing plan using ADB new financing products and instruments for credit enhancements, multi-tranche financing and local currency financing on sovereign, sub-sovereign or non sovereign basis; (b) Part II: Due diligence on technical, financial, institutional and safeguards compliance with ADB procedures for Environment, Resettlement, and Social Development.

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Project Name Hanoi Metro Rail System
Project Number 40080-012
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 4900-VIE: Hanoi Metro Rail System
Technical Assistance Special Fund US$ 400,000.00
TA 4900-VIE: Hanoi Metro Rail System Project (Supplementary)
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector Transport - Urban public transport
Gender Equity and Mainstreaming No gender elements
Description

The PPTA will contribute, along with complementary bilateral intervention on the first LRT line, to a safe, clean and efficient urban transport system reducing reliance on private modes of travel, contributing to urban livability and accommodating sustainable growth.

The TA will be articulated in two parts: (a) Part I: Optimization of the counterpart financing plan using ADB new financing products and instruments for credit enhancements, multi-tranche financing and local currency financing on sovereign, sub-sovereign or non sovereign basis; (b) Part II: Due diligence on technical, financial, institutional and safeguards compliance with ADB procedures for Environment, Resettlement, and Social Development.

Project Rationale and Linkage to Country/Regional Strategy

Viet Nam was among the world's fastest-growing economies in 2004 and 2005, registering 7.5% and 8.1%, respectively. Viet Nam has caught the eyes of investors due to its strong economic performance, political stability, and an ambitious and industrious work force. Investments and exports are driving growth in Viet Nam, leading to higher incomes and rapidly increasing living standards. Its capital city Hanoi has been showing an average growth in the economy of 11% per annum in recent years and this growth is expected to remain within the 11-12% range until 2020. The GDP per capita growth in Hanoi is expected to continue growing well above 5% per annum up to 2025. Viet Nam's population density of 252 persons per sq. Km in 2005 is almost double the rate of China. With a current population of around 3 million people, Ha Noi is becoming a metropolis with significant rural-to-urban migration, opening of the economy, and growth of the real estate sector. Its population is forecast to reach 3.2 to 4 million people by 2010 and may double by 2020. The Hanoi PC is having to balance the pressure of the growing demand for mobility with a desire to preserve the historic character of the old city center and its numerous monuments and lakes and a plan to expand to new urban developments in the outskirts of the city.

The Project for the Development of Transport in the Capital Hanoi by 2020approved by the Prime Minister in 1998 states the government?s intention to raise the share of public transport to 30% by 2010 (of which 5-10% are urban rail) and 50% by 2020. It has set the goal of implementing a first urban transit rail line by 2010. The Hanoi Authority for Tram and Public Transport Development Management (HATD) in Hanoi PC is responsible for planning and implementing the system.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Hanoi, Viet Nam
Safeguard Categories
Environment A
Involuntary Resettlement A
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

An estimated 30 person-months of consulting services, 14 of international consultants and 16 of national consultants are required. All consultants will be engaged by ADB in accordance with Guidelines on the Use of Consultants (April 2006, as amended from time to time).

Part 1 will be implemented by a team of three international consultants (7 person-months) and two national consultants (4 person-months), who will be engaged as individuals: one specialist in capital market development for 3 person-months, one specialist in guarantees and insurance for 2 person-months, and one legal adviser for 1 person-month, supported by a national legal counsel for 2 person-months and a project adviser for 2 person-months. One of the three individual international consultants selected for Part 1 will be designated as team leader for Part 1 and will be allocated an additional person-month to consolidate the reports from the other two consultants for submission to the Hanoi Peoples Committee and to ADB. The team leader will submit an inception report and detailed work plan for Part 1 within 1 month of the commencement of the PPTA, a midterm report at the end of the third month, and a draft final report in the fifth month.

Part 2 of the PPTA will be carried out by individual consultants (about 7 person-months of international and 12 national) for conducting due diligence of the project feasibility study and safeguard compliance. The consultants will be specialized in (i) environmental assessment (1.5 person-months international and 3 national); (ii) social development and resettlement (3 person-months international and 9 national); (iii) urban transport planning and rail civil engineering and investment planning and operations (1.5 person-months, international); and (iv) institutional, financial, and economic analysis (1.5 person-months, international). Each consultant for Part 2 will be responsible for his/her individual output, and will be coordinated by ADB's task manager for the project.

Responsible ADB Officer Robert Valkovic
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
People's CommitteeHoang Kim Anhquanghh_hatd@fpt.vn; admin_hatd@fpt.vn8 Ho Xuan Huong, Hoan Kiem district, Ha Noi, Viet Nam
Timetable
Concept Clearance 29 Nov 2006
Fact Finding 01 Aug 2006 to 10 Aug 2006
MRM -
Approval 18 Dec 2006
Last Review Mission -
PDS Creation Date 16 Mar 2006
Last PDS Update 05 Sep 2011

TA 4900-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2006 20 Apr 2007 20 Apr 2007 31 Jul 2007 31 Dec 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
900,000.00 0.00 90,000.00 0.00 0.00 0.00 990,000.00 18 Dec 2006 794,644.65
Title Document Type Document Date
Preparing the Hanoi Metro Rail System Project Technical Assistance Reports Dec 2006

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Hanoi Pilot Metro Line Resettlement Planning Documents Feb 2011

Evaluation Documents

See also: Independent Evaluation

No documents found.


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