Viet Nam: GMS Ben Luc-Long Thanh Expressway - PFR 2

Sovereign Project | 41414-063 Status: Proposed

Summary

The Project constructs a 57.1 km expressway between Ben Luc and Long Thanh in the south of Ho Chi Minh City (HCMC), which is a short link of the Greater Mekong Subregion (GMS) Southern Economic Corridor. The project expressway is divided into a western section (21.14 km), a middle section (10.71 km), and an eastern section (25.25 km). For the expressway construction, ADB finances the western and eastern sections, and Japan International Cooperation Agency (JICA) finances the middle section. The project was estimated to cost $1.608 billion at appraisal, inclusive of local taxes, contingencies, and financing charges during development. Tranche 2 in the amount of $286 million will cover construction of the eastern section of the expressway.

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Project Name GMS Ben Luc-Long Thanh Expressway - PFR 2
Project Number 41414-063
Country Viet Nam
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: GMS Ben Luc-Long Thanh Expressway - PFR 2
Ordinary capital resources US$ 286.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Transport - Urban roads and traffic management

Gender Equity and Mainstreaming No gender elements
Description The Project constructs a 57.1 km expressway between Ben Luc and Long Thanh in the south of Ho Chi Minh City (HCMC), which is a short link of the Greater Mekong Subregion (GMS) Southern Economic Corridor. The project expressway is divided into a western section (21.14 km), a middle section (10.71 km), and an eastern section (25.25 km). For the expressway construction, ADB finances the western and eastern sections, and Japan International Cooperation Agency (JICA) finances the middle section. The project was estimated to cost $1.608 billion at appraisal, inclusive of local taxes, contingencies, and financing charges during development. Tranche 2 in the amount of $286 million will cover construction of the eastern section of the expressway.
Project Rationale and Linkage to Country/Regional Strategy In the south of Ho Chi Minh City (HCMC), the 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 part of national north-sough expressway that links into the Mekong Delta, which is the rive basket of Asia. It will be used as a freight route to transport food produced from the Mekong Delta to the rest of the country and overseas via land and maritime transport.
Impact increased competitiveness of regional economy along GMS Southern Economic Corridor in the Southern Viet Nam and the GMS countries.
Outcome a more efficient and safer movement of goods and people in the greater HCMC area.
Outputs The project will increase the density of the HCMC road network, enhance connectivity between the eastern and western regions of HCMC, and improve the project management and financial management capacity of Vietnam Expressway Corporation (VEC). Under Tranche 2, the eastern section of the project expressway will be built. The entire expressway is expected to be completed in the middle of 2019, with operation scheduled for 2020.
Geographical Location
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The EIA cleared by ADB in 2010 (i) covers all sections of the expressway, (ii) describes the environmental baseline conditions in the project area, and (iii) provides a comprehensive assessment of potential physical, biological, and socioeconomic impacts resulting from the construction and operation of the project. The environmental management plan (EMP) included in the EIA specifies a range of mitigation and pollution control measures to minimize the anticipated negative impacts arising from project implementation. The EMP details environmental monitoring plan covering the preconstruction, construction, and operation of the project. VEC ensures compliance with the EMP by both ADB and JICA-funded contractors. Based on the Loan Agreement, VEC, with assistance from the project supervision consultant, undertakes monitoring of the contractor's environmental performance on a monthly basis and the results are compiled in quarterly environmental monitoring reports submitted to ADB. Such monitoring will be carried out throughout the construction period and during the first year of the project expressway's operation. The corresponding external monitoring reports will be submitted by the external environmental monitoring consultant simultaneously to ADB and VEC.
Involuntary Resettlement The RP cleared by ADB in 2010 covers all sections of the project expressway. District level updated RPs for all project-affected areas have been prepared based on the final project design and detailed measurement survey result, and accepted by ADB. Implementation of updated RPs is progressing well and assessed as being in compliance.
Indigenous Peoples Indigenous peoples categorization is C. 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
During Project Implementation
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 (2015, 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 Corporation
Hamlet 2, Linh Nam Ward
Hoang Mai District, Ha Noi
Timetable
Concept Clearance -
Fact Finding -
MRM 16 Sep 2015
Approval 31 Mar 2016
Last Review Mission -
Last PDS Update 24 Sep 2015

Safeguard Documents

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