Viet Nam: Productive Rural Infrastructure Development Project in the Central Highlands

Sovereign Project | 40238-012

Summary

The proposed project (Project) aims to rehabilitate and upgrade existing but deteriorated productive rural infrastructure (PRI) in five central highland provinces (CHP) of Gia Lai, Kon Tum, Dac Lak, Dac Nong and Lam Dong over a period of seven years. It directly supports the Government of Viet Nam's (Government) National Target Program for New Rural Development (NRD). The PRI has deteriorated because of limited funding available for new investment and a constrained capacity to sustainably develop, manage and use the assets. This contributes to CHP's poverty by constraining rural productivity. The Project would focus on sustainably improving approximately 30 medium scale irrigation systems, and associated PRI including: rural access infrastructure; and, local markets. In consultation with the Ministry of Agriculture and Rural Development (MARD), the 30 subprojects would be selected from CHP's Socio-Economic Development Plans.

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Project Name Productive Rural Infrastructure Development Project in the Central Highlands
Project Number 40238-012
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7943-VIE: Productive Rural Infrastructure Development Project in the Central Highlands
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Agriculture, natural resources and rural development - Agricultural policy, institutional and capacity development - Agricultural production - Irrigation

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The proposed project (Project) aims to rehabilitate and upgrade existing but deteriorated productive rural infrastructure (PRI) in five central highland provinces (CHP) of Gia Lai, Kon Tum, Dac Lak, Dac Nong and Lam Dong over a period of seven years. It directly supports the Government of Viet Nam's (Government) National Target Program for New Rural Development (NRD). The PRI has deteriorated because of limited funding available for new investment and a constrained capacity to sustainably develop, manage and use the assets. This contributes to CHP's poverty by constraining rural productivity. The Project would focus on sustainably improving approximately 30 medium scale irrigation systems, and associated PRI including: rural access infrastructure; and, local markets. In consultation with the Ministry of Agriculture and Rural Development (MARD), the 30 subprojects would be selected from CHP's Socio-Economic Development Plans. The improved PRI is expected to enable communities to respond to market signals by: increasing agricultural intensity and diversity; providing quicker and safer access to markets, employment opportunities, and social services; and, reducing costs of rural production and marketing, as well as reducing food wastage. Improved PRI increases incomes from both on- and off-farm employment, decreases the burden of chores on women, and increases food availability even when yields are constant. This is pro-poor and will be increasingly important for climate change resilience (CCR).

The Project advances two key, Government supported innovations. The first innovation enhances PRI sustainability and includes good practice, which has previously not been systematically implemented by: (i) concentrating a critical mass of PRI investments in selected productive areas; (ii) having the communities prioritize the PRI improvements in and around the selected irrigation schemes; (iii) preparing PRI condition inventories and a program to update them; (iv) using whole asset life analysis with realistic maintenance assumptions as the basis for design and sustainable management; (v) improving trails and paths within the irrigation systems thus separating pedestrians and cyclists who are often women and children from motorized traffic and reducing the loss of productive land; and (vi) incorporating bio-engineering for soil and water conservation in the design thus stabilizing the local ecosystems and improving CCR.

The second innovation is multi-level capacity building measures (CBM) that are gender sensitive to assist stakeholders (owners, managers and users) to sustainably develop, manage and use PRI. The CBM will have three key components: (i) Preparation of a long-term capacity building strategy; (ii) Strengthening local capacity to manage the PRI improved by the Project; and (iii) Building the local knowledge base for sustainable PRI development. CBM activities would include opportunities for: (i) PRI stakeholder training; (ii) upgrading PRI related qualifications of CHP officials; (iii) research of PRI knowledge gaps; and (iv) Work experience for agriculture and engineering students. Each CBM level, including technical and managerial content, will ensure good practices used by stakeholders are fully consistent with each other and institutionalized in formal and non-formal training courses and academic curricula.

Project Rationale and Linkage to Country/Regional Strategy

The majority (84%) of the population of the CHP live in sparsely populated and dispersed villages where land is suitable for agriculture. The primary income source for nearly all rural CHP households is farming. While poverty has been reduced nationwide, from 18.1% in 2002 to 13.4% in 2008, equivalent figures in the CHP were 29.2% in 2004, and 21% in 2008, with women poorer than men. Poverty rates among some ethnic minorities in more isolated areas are as high as 70% 80%. These figures reflect the more difficult terrain, and the lack of commercial opportunities, social services, and arable land, compounded by poor quality PRI.

Improving PRI and associated CBM are key components of the Government's draft Socio-Economic Development Plan (2011-2015) and MARD's Five Year Plan (2011 - 2015). They are contained in ADB's draft Country Partnership Strategy (2011-2015), and consistent with the ADB's Agriculture, Natural Resources and Environment (ANRE) Viet Nam's Assessment, Strategy and Roadmap (ASR). ADB has comparative advantages from its long PRI experience and capacity to provide significant PRI investments. The Project is a logical progression to, and incorporates lessons learned from, ADB supported PRI projects in Viet Nam, including the need for: long-term CBM; beneficiary involvement; subproject prescreening during the Project Preparatory Technical Assistance (PPTA); ensuring the subprojects are properly designed and budgeted; start up support; and geographically focusing investments.

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Status of Implementation Progress (Outputs, Activities, and Issues)
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Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design

The PPTA would prepare a subproject Consultation and Participation Framework (CPF) as well as Consultation and Participation Plans for the representative subprojects. The project will build upon past ADB project experience. A CPF is necessary since there will be approximately 30 subprojects each with different PRI needs and stakeholder concerns and arrangements. The CPF would be used to prepare CPP for each subproject during loan implementation.

Primary information will be gathered through field interviews and rapid rural assessments to ascertain stakeholder views and development constraints and concerns during the PPTA. The Group meetings will be held to provide local insight into the social and technical issues related to the subprojects. Separate meetings will be held with female stakeholders and identified vulnerable people. District level meetings of commune representatives, representatives of civil society and NGOs will be held to ensure full transparency during the PPTA and loan project implementation.

The C&P plans would guide the engineering design. The engineering design would be focused on meeting the needs of the target beneficiaries. An example of this would be the investment in paved walkways and bicycle paths that ease the mobility of the population as well as separate them from motorized traffic. The C&P Plan would be critical in locating and designing this infrastructure.

During Project Implementation
Business Opportunities
Consulting Services A total of 53.5 Person Months (PM) of consulting services (consisting of 21 PM of international (I) and 32.5 PM of national (N)) will be required. The bulk of the consulting services (19 PM-I expertise and 31.5 PM-N) will be recruited from a firm. Two individual independent consultants with expertise in productive rural infrastructure (PRI), agriculture and rural development and ADB processing (2 PM of I and 1 PM of N) will be recruited to assist both the Government and ADB for project quality and processing.
Responsible ADB Officer Charles David Salter
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SERD
Executing Agencies
Ministry of Agriculture & Rural Development (MARD)Agricultural Projects Management Board
3rd Floor, Agricultural Exhibition Ctr
No.2,Hoang Quoc Vie Str.,Cau Giay Dist
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 02 Dec 2011
Last Review Mission -
PDS Creation Date 24 Oct 2008
Last PDS Update 31 Mar 2015

TA 7943-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Dec 2011 09 Feb 2012 09 Feb 2012 30 Apr 2013 28 Feb 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 02 Dec 2011 916,454.17

Safeguard Documents

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Evaluation Documents

See also: Independent Evaluation

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