Viet Nam: Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project

Sovereign Project | 41414-023

Summary

The project will construct a 57.1 kilometer (km) expressway between Ben Luc and Long Thanh in the south of Ho Chi Minh City (HCMC), which is a short link of the GMS Southern Economic Corridor (SEC). The executing agency is the Vietnam Expressway Corporation (VEC), which was established under the Ministry of Transport (MOT) to develop the national expressway network in Viet Nam. The project expressway consists of a southern link to the planned HCMC Third Ring Road and an access link to the planned Bien Hoa Vung Tau expressway (see map). The starting point of the project expressway is an interchange with the existing HCMC-Trung Luong expressway, and the ending point is an interchange with the planned Bien Hoa Vung Tau expressway. The project expressway will be constructed with four lanes and the government will expand the width to eight lanes when traffic demand reaches capacity.

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Project Name Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project
Project Number 41414-023
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0053-VIE: Multitranche Financing Facility - GMS Ben Luc-Long Thanh Expressway Project
Ordinary capital resources US$ 636.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming Some gender elements
Description The project will construct a 57.1 kilometer (km) expressway between Ben Luc and Long Thanh in the south of Ho Chi Minh City (HCMC), which is a short link of the GMS Southern Economic Corridor (SEC). The executing agency is the Vietnam Expressway Corporation (VEC), which was established under the Ministry of Transport (MOT) to develop the national expressway network in Viet Nam. The project expressway consists of a southern link to the planned HCMC Third Ring Road and an access link to the planned Bien Hoa Vung Tau expressway (see map). The starting point of the project expressway is an interchange with the existing HCMC-Trung Luong expressway, and the ending point is an interchange with the planned Bien Hoa Vung Tau expressway. The project expressway will be constructed with four lanes and the government will expand the width to eight lanes when traffic demand reaches capacity. The following six interchanges (ICs) are planned under the project: (i) IC1 with HCMC Trung Luong expressway; (ii) IC2 with National Highway 1A; (iii) IC3 with National Highway 50; (iv) IC4 with Nguyen Van Tao; (v) IC6 with Phuoc An; and (vi) IC7 with National Highway 51. IC5 with HCMC Third Ring Road and IC8 with Bien Hoa Vung Tau expressway will be constructed after the completion of the Third Ring Road and the Bien Hoa Vung Tau expressway. The project expressway is divided into a western section (19.8 km), a middle section (11.0 km), and an eastern section (26.3 km). For the expressway construction, ADB will finance the western and eastern sections, and a potential cofinancier (Japan) is expected to finance the middle section. The project expressway will be tolled and operated by VEC. VEC established a subsidiary company to operate and maintain the expressways through a public -private partnership concession arrangement.
Project Rationale and Linkage to Country/Regional Strategy

In the south of HCMC, east west traffic is restricted due to the lack of river crossing facilities, forcing vehicles into the center of HCMC. A substantial shift has occurred from motorcycles to passenger cars in the project area, further exacerbating traffic congestion. Construction of HCMC ring roads to establish connectivity with neighboring cities through expressway links is a high priority of the government. In this regard, the project will facilitate east west traffic south of HCMC, thereby diverting through-traffic and reducing traffic congestion in the center of HCMC. Through construction of the project expressway, the connectivity of cities and towns around HCMC will also be improved, and transport costs and travel times for the movement of passengers and goods in and around HCMC will be reduced. Moreover, the project expressway is identified as a part of the national north south expressway that links into the Mekong Delta, which is the rice basket of Asia. It will be used as a freight route to transport food produced in the Mekong Delta to the rest of the country and overseas via land and maritime transport.

Furthermore, the project will strengthen subregional connectivity and international trade with the neighboring country of Cambodia. Under the Cross-Border Transport Agreement between Viet Nam and Cambodia, Viet Nam agreed to accept entry of 150 Cambodian commercial vehicles into Viet Nam, and vice-versa. For commercial vehicles in Cambodia, improved access to ports in HCMC will reduce freight cost and travel time, especially for cargoes to and from the People's Republic of China, Japan, and the United States. The transport of goods between Cambodia and HCMC through the GMS SEC is constrained by the absence of a Mekong River bridge at Neak Laong in Cambodia, as well as the heavy traffic congestion around HCMC. The Japan International Cooperation Agency (JICA) is implementing the Mekong River bridge project at Neak Laong, and the project expressway will provide an express route to and from the ports in HCMC. Therefore, the project expressway, coupled with the JICA-financed bridge project, is expected to improve transport efficiency in the GMS SEC and expand international trade between the two countries.

ADB's country strategy and program (CSP) 2007- 2010 for Viet Nam aims to help the Government of Viet Nam reduce poverty, in accordance with the government's socioeconomic development plan, through (i) pro-poor business-led economic growth, (ii) social equity and balanced development, and (iii) environmental protection and management. The CSP promotes good governance and places a high priority on contributing to regional cooperation. In light of the expected strong expansion of the Vietnamese economy, the CSP recognizes the need for accelerated improvements in infrastructure, particularly transportation and energy, and in human resource development.

Impact Increased competitiveness of the regional economy along the SEC in southern Viet Nam and the GMS countries
Project Outcome
Description of Outcome A more efficient and safer movement of goods and people in the greater HCMC area
Progress Toward Outcome Tranche 1 of the MFF is ongoing. VEC is undertaking land acquisition and resettlement. Recruitment of the project supervision consultant and external environment monitoring consultant was completed. Out of the 5 civil works contract packages to be funded by this loan (Tranche 1), 4 contracts have been signed, and VEC is evaluating PQ for remaining one package.
Implementation Progress
Description of Project Outputs

1. Road density of HCMC increased

2. Connection between east and west regions of HCMC enhanced

3. Project management capacity of VEC improved

4. Financing management capacity of VEC improve

Status of Implementation Progress (Outputs, Activities, and Issues) Tranche 1 of the MFF is ongoing. VEC is undertaking land acquisition and resettlement. Recruitment of the project supervision consultant and external environment monitoring consultant was completed. Out of the 5 civil works contract packages to be funded by this loan (Tranche 1), 4 contracts have been signed, and VEC is evaluating PQ for remaining one package.
Geographical Location Southern Viet Nam
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The EIA describes the environmental baseline conditions in the project area and provides a comprehensive assessment of potential physical, biological, and socioeconomic impacts resulting from the construction and operation of the project. Major impacts identified during the construction phase include emission of elevated levels of dust and noise due to site works, operation of equipment and vehicles, and transport of construction materials and spoils. Acid sulfate soils (ASSs) constitute almost 37% of the project area (about 30% are potential ASSs and 7% actual ASSs), and disturbance of ASSs could have a detrimental effect on aquatic resources due to acidification of rivers, streams and aquaculture ponds in the vicinity of the project site. Pollution of water resources and the surrounding environment may also occur due to earthworks and generation of construction and domestic wastes. During operation, it is anticipated that noise levels at residential areas along the expressway are likely to exceed ambient standards and that exhaust emissions will contribute to air pollution in the project area. The mangrove forests in Can Gio district of HCMC have been declared as a biosphere reserve by UNESCO. The expressway alignment will run through 6 km of the transition zone of the biosphere reserve where no mangrove forests exist. The project is not anticipated to adversely affect the biosphere reserve.
Involuntary Resettlement Under MFF-Tranche 1 (ADB Loan 2730), ADB has concurred with the updated resettlement plans for Ben Luc and Can Giuoc Districts in Loan An Province; Binh Chanh (Tan Quy Tay Commune only), Nha Be, and Can Gio Districts in Ho Chi Minh City (HCMC); and Nhon Trach and Long Thanh Districts in Dong Nai Province.
Indigenous Peoples The Tay and Chinese households that will be affected by the project are well integrated into the wider socioeconomic and cultural community.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were carried out during the preparation of resettlement plan and conduct of social impact assessment. Focus group discussions and separate meetings with women and other vulnerable groups were undertaken during technical assistance implementation.
During Project Implementation Under MFF-Tranche 1 (ADB Loan 2730), the resettlement plans were updated following completion of the detailed design with District Compensation and Site Clearing Committee in the seven project districts. The updated district-level resettlement plans were submitted to ADB for review and concurrence before any land acquisition and relocation activities are undertaken. During updating and implementation of the resettlement plan, VEC and members of the District Compensation and Site Clearing Committee hold separate meetings with women and other vulnerable households.
Business Opportunities
Consulting Services All consulting services to be financed out of the proceeds of the ADB loan will be subject to and governed by ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement All works to be financed out of the proceeds of the ADB loan will be subject to and governed by ADB's Procurement Guidelines (2013, as amended from time to time).
Responsible ADB Officer Yasushi Tanaka
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Viet Nam Expressway CorporationHamlet 2, Linh Nam Ward
Hoang Mai District, Ha Noi
Timetable
Concept Clearance 02 Mar 2010
Fact Finding 07 Jun 2010 to 22 Jun 2010
MRM 16 Aug 2010
Approval 14 Dec 2010
Last Review Mission -
PDS Creation Date 06 Apr 2010
Last PDS Update 31 Mar 2015

MFF Facility Concept 0053-VIE

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 973.00 Cumulative Contract Awards
ADB 636.00 - 0.00 0.00 %
Counterpart 337.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %
Title Document Type Document Date
GMS Ben Luc - Long Thanh Expressway Project Framework Financing Agreement Nov 2010
Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project Reports and Recommendations of the President Nov 2010
Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project Summary Poverty Reduction and Social Strategies Nov 2010
Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project Facility Administration Manual Oct 2010
GMS Ben Luc - Long Thanh Expressway Project Design and Monitoring Frameworks Aug 2010

Evaluation Documents

See also: Independent Evaluation

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