Viet Nam: Ho Chi Minh City-Long Thanh-Dau Giay Expressway Technical Assistance Project

Sovereign Project | 40198-013

Summary

The proposed Ho Chi Minh City - Long Thanh - Dau Giay (HCMC - LT - DG) Expressway is to be a 55 kilometer, high speed, limited access expressway connecting Ho Chi Minh City to Long Thanh and to a junction with National Highway 1A at Dau Giay. The HCMC - LT - DG Expressway Preparation Project (the Project) will undertake activities required to (i) commence of the construction of the HCMC - LT - DG Expressway, and (ii) strengthen VEC as an independent infrastructure provider.

The outputs of the Project will be (i) detailed engineering designs approved; (ii) bidding documents issued; (iii) resettlement plans updated; (iv) Environmental Impact Assessment updated; (v) Operation and Maintenance (O&M) Concession documents prepared; (vi) a revised organizational structure for VEC prepared; (vii) training needs assessment complete and training program undertaken; and (ix) an asset management system identified and commissioned.

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Project Name Ho Chi Minh City-Long Thanh-Dau Giay Expressway Technical Assistance Project
Project Number 40198-013
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2374-VIE: Ho Chi Minh City-Long Thanh-Dau Giay Expressway Technical Assistance Project
Asian Development Fund US$ 10.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming
Description

The proposed Ho Chi Minh City - Long Thanh - Dau Giay (HCMC - LT - DG) Expressway is to be a 55 kilometer, high speed, limited access expressway connecting Ho Chi Minh City to Long Thanh and to a junction with National Highway 1A at Dau Giay. The HCMC - LT - DG Expressway Preparation Project (the Project) will undertake activities required to (i) commence of the construction of the HCMC - LT - DG Expressway, and (ii) strengthen VEC as an independent infrastructure provider.

The outputs of the Project will be (i) detailed engineering designs approved; (ii) bidding documents issued; (iii) resettlement plans updated; (iv) Environmental Impact Assessment updated; (v) Operation and Maintenance (O&M) Concession documents prepared; (vi) a revised organizational structure for VEC prepared; (vii) training needs assessment complete and training program undertaken; and (ix) an asset management system identified and commissioned.

Project Rationale and Linkage to Country/Regional Strategy

The Government?s Socio-Economic Development Plan (SEDP) for 2006?2010 identified the need for a network of high capacity, highspeed expressways to complement the network of national, provincial, and city roads. Under the Government's Expressway Master Plan, developed with Asian Development Bank (ADB) funding under the technical assistance to the Socialist Republic of Viet Nam for the Expressway Network Development Plan project approved in 2005 (TA4695-VIE) a short-term program of priority expressway projects was identified. This includes the HLD Expressway.

Greater Ho Chi Minh City (HCMC) is the largest city in Viet Nam and the country?s economic hub. However, the road network both within and around HCMC is becoming heavily congested, travel speeds are reducing, and transport costs are increasing. There is an urgent need to provide relief to the city roads connecting the center of HCMC and the port area with roads leading north from the city to central and northern Viet Nam. HCMC also lies at a critical junction on the transport network for the Greater Mekong Subregion (GMS), so improvements to the network around HCMC will remove a major bottleneck on the GMS network.

The Ho Chi Minh City?Long Thanh?Dau Giay (HLD) Expressway Technical Assistance Project (the Project) will assist the Government of Viet Nam (the Government) to (i) complete documentation required for construction of the HLD Expressway, and (ii) undertake strengthening and capacity building at Vietnam Expressway Corporation (VEC).

Impact A reduction in the cost and travel times for the movement of passengers and goods between Ho Chi Minh City (HCMC) and the provinces to the north and northeast and south of the city through the construction of the Ho Chi Minh City Long Thanh Dau Giay (HLD) Expressway
Project Outcome
Description of Outcome Completion of documentation required to commence construction of the HLD Expressway, and Vietnam Expressway Corporation (VEC) strengthened as a commerciallyoriented infrastructure provider with enhanced capacity
Progress Toward Outcome TA Project was approved on 28 November 2007 and the Project's activities substantially completed by the extended loan closing date of 30 June 2011. Loan's account is still being opened for 3 months, i.e. until 30 September 2011
Implementation Progress
Description of Project Outputs

1.1 Detailed engineering designs completed

1.2 Bidding documents prepared

1.3 Updated resettlement plans completed

1.4 Updated environmental impact assessment (EIA) completed

1.5 Civil works contracts procured by VEC

1.6 Operation and maintenance (O&M) concession documents prepared

1.7 Resettlement plan implemented by VEC

2.1 Revised organizational structure for VEC prepared

2.2 Identification of legal and regulatory constraints, and remedies, to VEC operating as an efficient, financially secure, provider of expressway facilities

2.3 Training needs assessment complete and training program

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

The implementation of Preparation Component (pre-construction activities) for the second section of 51 km was fully completed with the uRP, Stage 3 for Long Thanh district approved by ADB in December 2010. For the first section of 4 km, implementation of pre-construction activities, except the RP still being finalized, was also substantially completed. Remaining activities for the first 4km section, as agreed by parties concerned, are being be handed over to ADB's Construction Loan and JICA's Loan as well for completion and continuation after the loan closing date (LCD) of 30 June 2011 at no cost increase.

Final payment for the consulting service contract is expected to be made within the opened Loan's account of 30 September 2011.

Last payment has been settled and waiting to close loan account and PCR

Geographical Location
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The IEE and update EIA for the first 4km section were re-submitted to ADB in May 2011 for review and approval. ADB's comments were provided to VEC/EPMU HLD in July 2011. Finalization and approval of this RP is expected to be in August 2011.
Involuntary Resettlement The draft RP for the first 4km section was prepared. However, due to slow progress in carrying out the detailed measurement survey (DMS) and replacement cost survey by HCMC's agencies concerned including district compensation committees, this draft RP was not finalized by the LCD be finalized by the proposed LCD of 30 June 2011. As a result, finalization of this RP, as agreed by parties concerned, will be handed over to ADB's project supervision consultant (PSC) or JICA's PSC for completion after the LCD of 30 June 2011.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

Consultants will be recruited for the Project under a single contract and will be recruited and engaged by the Viet Nam Expressway Corporation (VEC). Recruitment procedures will be in accordance with ADB's Guidelines on the Use of Consultants (2006) and other arrangements satisfactory to ADB for the engagement of domestic consultants. Consultants will be recruited using the quality and cost-based selection procedures; full technical proposals will be requested. Equipment to be financed under the Project will be procured in accordance with ADB's Procurement Guidelines (2006).

The consulting services will be undertaken by an international consulting firm for about 365 person-months (101 person-months of international and 264 person-months of domestic consulting services). The consultants will have expertise in (a) expressway design including alignments, pavements, and bridges, road safety, road traffic information and toll systems, transport economics, financial analysis and assessment, environmental impact assessment, resettlement, and social issues, and in (b) organization design, training and human resource management, asset management systems, and legal and regulatory frameworks.

Procurement The Project will not require civil works procurement. Procurement of equipment will be undertaken in accordance with ADB's Procurement Guidelines (2006). Since the items required will be small and few in number-mainly computers, design software and equipment, testing and survey equipment, and similar items-procurement will follow local competitive bidding or direct purchase procedures.
Responsible ADB Officer Le Dinh Thang
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Viet Nam Expressway CorporationLE MANH HUNGhunglmvec@gmail.com187-189 Dinh Bo Linh - W.26 - Binh Thanh Distric - Ho Chi Minh City
Timetable
Concept Clearance 01 Mar 2006
Fact Finding 05 Mar 2007 to 16 Mar 2007
MRM 16 Jul 2007
Approval 28 Nov 2007
Last Review Mission -
PDS Creation Date 15 Aug 2008
Last PDS Update 15 Dec 2011

Loan 2374-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Nov 2007 20 Dec 2007 05 Sep 2008 30 Jun 2010 30 Jun 2011 10 Jan 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 10.00 28 Nov 2007 9.68 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 28 Nov 2007 9.68 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - -

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Ho Chi Minh City-Long Thanh-Dau Giay Expressway Technical Assistance Project: Income Restoration Program for Dong Nai Province (Stage 2) Resettlement Plans Feb 2012
Ho Chi Minh City - Long Thanh - Dau Giay Expressway Project (Portion An Phu - Ring Road 2 and Ring Road 2 I.C) Initial Environmental Examination Oct 2011
Ho Chi Minh City - Long Thanh - Dau Giay Expressway Project: (Portion An Phu - Ring Road 2 and Ring Road 2 I.C) Initial Environmental Examination Oct 2011
Ho Chi Minh City-Long Thanh-Dau Giay Expressway Technical Assistance Project: Updated Resettlement Plan for Long Thanh District, Dong Nai Province (Stage 3) Resettlement Plans Nov 2010
Ho Chi Minh City-Long Thanh-Dau Giay Expressway Technical Assistance Project: Updated Resettlement Plan for District 9, Ho Chi Minh City (Stage 3) Resettlement Plans Sep 2010
Ho Chi Minh City-Long Thanh-Dau Giay Expressway Technical Assistance Project: Updated Resettlement Plan for Cam My and Thong Nhat Districts, Dong Nai Province (Stage 3) Resettlement Plans Jun 2010
Ho Chi Minh City-Long Thanh-Dau Giay Expressway Technical Assistance Project: Updated Resettlement Plan for Long Thanh District, Dong Nai Province (Stage 2) Resettlement Plans Mar 2010
Ho Chi Minh City-Long Thanh-Dau Giay Expressway Technical Assistance Project: Income Restoration Program for Ho Chi Minh City Resettlement Plans Mar 2010
Ho Chi Minh City-Long Thanh-Dau Giay Expressway Technical Assistance Project: Updated Resettlement Plan for District 9, Ho Chi Minh City (Stage 2) Resettlement Plans Mar 2010
Ho Chi Minh City-Long Thanh-Dau Giay Expressway Technical Assistance Project: Updated Resettlement Plan for Cam My and Thong Nhat Districts, Dong Nai Province (Stage 2) Resettlement Plans Mar 2010
Ho Chi Minh City-Long Thanh-Dau Giay Expressway Technical Assistance Project: Updated Resettlement Plan for District 9, Ho Chi Minh City (Stage 1) Resettlement Plans Jan 2010
Ho Chi Minh City-Long Thanh-Dau Giay Expressway Technical Assistance Project: Income Restoration Program for Dong Nai Province Resettlement Plans Nov 2009
Ho Chi Minh City-Long Thanh-Dau Giay Expressway Technical Assistance Project: Updated Resettlement Plan for Cam My and Thong Nhat Districts, Dong Nai Province (Stage 1) Resettlement Plans Jul 2009
Ho Chi Minh City-Long Thanh-Dau Giay Expressway Technical Assistance Project: Updated Resettlement Plan for Nhon Trach District, Dong Nai Province Resettlement Plans Jul 2009
Ho Chi Minh City-Long Thanh-Dau Giay Expressway Technical Assistance Project: Updated Resettlement Plan for Long Thanh District, Dong Nai Province (Stage 1) Resettlement Plans Jul 2009
Ho Chi Minh City-Long Thanh-Dau Giay Expressway Project Resettlement Plans May 2008

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