Viet Nam: Transport Connections in Northern Mountainous Provinces Project

Sovereign Project | 41433-013

Summary

Under the project, about 304 kilometers (km) of provincial roads in six northern mountainous provinces of Viet Nam will be rehabilitated. These provinces have high rates of poverty and large ethnic minority populations. The road network consists predominantly of mountainous, unpaved, narrow roads, and many sections are impassable during the rainy season. Project roads have been selected through project preparatory technical assistance (TA) based on social and economic indicators to maximize development benefits and impacts. The time and cost of traveling from mountainous remote areas to social infrastructure will be reduced, and the economic activities along the roads will be increased. The project is consistent with the strategic priorities of the country strategy and program, which emphasizes investments in infrastructure development for pro-poor economic growth.

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Project Name Transport Connections in Northern Mountainous Provinces Project
Project Number 41433-013
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Grant: Transport Connections in Northern Mountainous Provinces Project
Nordic Development Fund US$ 2.78 million
Loan 2789-VIE: Transport Connections in Northern Mountainous Provinces Project
Asian Development Fund US$ 80.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming Effective gender mainstreaming
Description Under the project, about 304 kilometers (km) of provincial roads in six northern mountainous provinces of Viet Nam will be rehabilitated. These provinces have high rates of poverty and large ethnic minority populations. The road network consists predominantly of mountainous, unpaved, narrow roads, and many sections are impassable during the rainy season. Project roads have been selected through project preparatory technical assistance (TA) based on social and economic indicators to maximize development benefits and impacts. The time and cost of traveling from mountainous remote areas to social infrastructure will be reduced, and the economic activities along the roads will be increased. The project is consistent with the strategic priorities of the country strategy and program, which emphasizes investments in infrastructure development for pro-poor economic growth.
Project Rationale and Linkage to Country/Regional Strategy

The northern mountainous provinces of Viet Nam have developed at a much slower pace than the rest of the country. The project area had 30% of the population living in poverty in 2009, which is far above the 11% average for the country. Gross domestic product per capita in the northern mountainous provinces was $400 in 2008, compared to the national average of $1,070. Ethnic minorities typically inhabit the more mountainous and less accessible areas of the provinces, and account for 69% of the project area's population. The income level of ethnic minorities is below average. Women are involved mainly in agricultural activities, and transport their products to sell in local markets. Poor access to markets as well as to health, education, and other government services is a major constraint on socioeconomic development.

The government recognizes that development of the northern region of Viet Nam has lagged behind the rest of the country. The government's socioeconomic development plan identifies lack of rural infrastructure in the region as a constraint on effective poverty reduction. In support of government efforts to meet poverty reduction objectives, the country strategy and program of the Asian Development Bank (ADB) supports initiatives targeted at the northern mountainous region to address the high levels of general and food poverty. Planned improvements along the Greater Mekong Subregion (GMS) corridors are also expected to bring increased economic and employment opportunities to the region. The project areas have strong demographic and economic relations with the cities that will be connected by the GMS Noi Bai Lao Cai Highway and the GMS Ha Noi Lang Son Expressway, and the project will improve the connection between mountainous rural communities and the GMS corridors and major national highways.

Road travel is the dominant transport mode in Viet Nam. The road network comprises more than 256,000 km, of which the vast majority (216,000 km) are provincial and local roads. These are mostly in poor condition about 52% of the network is unpaved, and about 16% of local population does not have access to an all-season road. Unpaved roads often become impassable during the rainy season, and ordinary automobiles cannot pass along the project roads for 140 days in a year. The poor road conditions contribute to accidents as well as pavement damage due to vehicle overloading. The condition of the roads discourages investments in the region, making it difficult for agricultural production to expand beyond subsistence farming, or for other industries to develop.

Road maintenance in Viet Nam is less than optimal, mainly due to insufficient budget and low capacity of operation and maintenance companies. The Ministry of Transport (MOT) defines road maintenance activities as regular maintenance, periodical repair, and emergency repair. The National Assembly approved establishment of a road maintenance fund in November 2008. The fund was expected to provide more stable and sufficient budget for road maintenance but the government is facing difficulties securing sufficient revenue and has not yet formulated implementation details.

There is also a need to reduce the life-cycle cost of roads, including both development and maintenance costs, as funds to cover the large demand for both road rehabilitation and new roads are limited. ADB is providing policy and advisory TA for the MOT, which includes a component to develop design guidelines to allow flexible application of road classification. At present, the same road classification and corresponding design standards are usually applied from the beginning to the end points of a road, regardless of varying traffic demand and conditions of the road sections. Flexible application of road classification is expected to reduce life-cycle costs and improve sustainability of local roads. Some roads under the project will be designed based on guidelines to be developed through the TA.

Most of the project roads are in areas vulnerable to climate impacts, and the mountainous terrain (and, therefore, the local economy) is prone to natural disaster risks. Frequent flash floods and road closures have negative economic and social impacts on road users and residents, and these impacts are expected to increase due to climate change. The government approved the National Target Program to respond to climate change in 2008. The MOT approved its action plan toward the National Target Program for seven subsectors including road transport in 2011. Provincial people's committees (PPCs) are preparing local action plans based on the National Target Program. However, past and current assistance focuses more on coastal areas than the northern mountainous provinces.

The role of local governments in developing and managing local roads is becoming increasingly important as the government decentralized the responsibilities for implementation of official development assistance programs to provincial governments by a decree in 2006. The project will be implemented directly by the PPCs, unlike previous projects where the MOT acted as an executing agency. To efficiently coordinate and monitor implementation by six provincial project management units (PPMUs) under the PPCs, a joint coordination committee (JCC) has been established upon the Prime Minister's authorization. This direct implementation arrangement will enhance project ownership and encourage local government participation in implementation, but it imposes the need for some initial support for procurement, financial management, and other capacity building needs.

Impact Reduced poverty in the project areas
Project Outcome
Description of Outcome Improved and reliable road connectivity in the project areas with increased resilience to climate change
Progress Toward Outcome --
Implementation Progress
Description of Project Outputs

Project roads are rehabilitated, including the sections for which (i) design guidelines developed through the policy and advisory TA are applied, and

(ii) climate-proofing measures developed through the grant component are applied.

Capacity of PPC staff on potential climate change impacts is enhanced.

Potential social problems among vulnerable people, especially women and ethnic minorities, are prevented and mitigated.

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

1.1 Provincial road (km) rehabilitated: The road length will be reduced by about 17 km. This reduction is mainly due to quality of FS, necessary technical adjustments and price escalation, especially in labor cost.

1.2 Share of the paved portion of the project roads increases: 12% out of 100%.

1.3 Flexible design guideline is applied (roads): Two flexible design have been applied ( DBST and Macadam pavement).

1.4 Adaptation measures are implemented (roads): None. Not yet implemented.

1.5 Women laborers are used in the local unskilled labor in the project : So far, the contractors have hired 206 local people (48% among their workers) (target is 30%) but only achieved 38.8% female local workers among local workers hired (target is 50%).

2.1 The number of staff members who attend seminars on climate change impacts: Seminars by CC consultants were conducted in June 2014 with different staff from 6 PPMUs to attend.

2.2 Percentage of women among staff members who attend seminars on climate change impacts: ditto.

2.3 Vulnerability mapping integrates gender issues: ongoing.

3.1 Contractors' personnel and targeted vulnerable people, especially women and ethnic minorities, become aware of the potential problems by participating in gender action and ethnic minority development programs: Contractors ensure equal pay for equal work, and don't hire child labor. In the site visited, contractors have provided better latrine and hygiene conditions in construction camp and first aid kits with medicine and condoms for safe sex and STD/HIV/AIDS protection at camps as well as provided information on this to its workers.

3.2 Facilitators of programs are not dominated by one sex: So far, the contractors have hired 206 local people (48% among their workers) (target is 30%) but only achieved 38.8% female local workers among local workers hired (target is 50%).

Geographical Location Viet Nam
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples A
Summary of Environmental and Social Aspects
Environmental Aspects

Results of the IEEs conducted for each province showed that the proposed road improvement works will result in minor environmental impacts. The biological environment is dominated by agriculture, production forests, and tree plantations around most stretches of the project roads. None of the project roads traverses buffer or core zones of ecologically or culturally protected areas.

The adverse environmental impacts will be largely experienced during construction due to spoil and waste disposal, traffic interruption, potential disruption of water and power supply utilities, and elevated levels of noise and dust. The works will be of short duration, causing only moderate disturbance to the surrounding areas provided the EMPs are fully implemented. The EMPs provide mitigation measures and monitoring activities to avoid or reduce anticipated negative project impacts.

Involuntary Resettlement Although about 4,700 households are affected by land acquisition, no households are losing 10% or more of their total productive assets. Impacts on structures are limited as houses and shops will be only partially affected. There will be no impacts on common property resources, and access to properties and economic opportunities will not be restricted during project construction and operation. Key information in the resettlement plans has been disclosed to the affected households through distribution of information leaflets in Vietnamese or local ethnic minority languages during market days in the communes prior to submission to ADB for review and concurrence.
Indigenous Peoples The ethnic minorities in the remote areas, especially in those that are difficult to access by road during the rainy season, are particularly poor. Road improvement will greatly benefit the ethnic minority groups but there are also increased social risks. GAEMDPs for Bac Kan, Cao Bang, Ha Giang, Tuyen Quang, and Lao Cai provinces have been designed in a culturally and linguistically gender-responsive way. The plans will be translated into ethnic minority languages since a critical source of vulnerability among women from ethnic minority groups is language, which isolates these women and reduces income-generating opportunities. Data disaggregated by ethnic group will be collected during implementation and monitoring.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

Project Coordination Consulting Services: QCBS, 485 person-months, $5.23 million

Project Auditing Consulting Services: QCBS, 156 person-months, $0.66 million

Procurement

Civil works: National competitive bidding, 23 contracts, $78.04 million

Equipment: Shopping, 1 contract, $0.04 million

Responsible ADB Officer Nguyen Dinh Cuong
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Transport Department of Cao BangPPMUCAOBANG@GMAIL.COMHop Giang Ward - Cao Bang Town
Cao Bang Province, Viet Nam
Transport Department of Ha GiangADBHAGIANG@GMAIL.COMNguyen Trai Road - Ha Giang Town
Ha Giang Province, Viet Nam
Transport Department of Lao CaiBANADBLC@YAHOO.COM.VNHoang Lien Road - Lao Cai city
Lao Cai Province, Viet Nam
Transport Department of Bac KanLICHKHKT@GMAIL.COMDuc Xuan Ward - Bac Kan Town
Bac Kan Province, Viet Nam
Transport Department of Tuyen QuangPPMU_TUYENQUANG@YAHOO.COMPhan Thiet Road - Tuyen Quang Town
Tuyen Quang Province, Viet Nam
Transport Department of Yen BaiPPMUYB@YAHOO.COMYen Ninh Ward - Yen Bai city
Yen Bai Province, Viet Nam
Timetable
Concept Clearance 28 Feb 2011
Fact Finding 07 Mar 2011 to 18 Mar 2011
MRM 13 Jul 2011
Approval 30 Sep 2011
Last Review Mission -
PDS Creation Date 30 Mar 2010
Last PDS Update 30 Sep 2014

Grant

Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 28.89 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 26.11 Cumulative Disbursements
Cofinancing 2.78 - 0.00 0.00 %

Loan 2789-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Sep 2011 02 Dec 2011 16 Apr 2012 30 Jun 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 80.00 Cumulative Contract Awards
ADB 80.00 30 Sep 2011 69.58 0.00 96%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 30 Sep 2011 49.17 0.00 68%
Title Document Type Document Date
Transport Connections in Northern Mountainous Provinces Project Procurement Plans Dec 2012
Transport Connections in the Northern Mountainous Provinces Project Project/Program Administration Manual May 2012
Project Agreement for Transport Connections in the Northern Mountainous Provinces Project between Asian Development Bank and Bac Kan Provincial People's Committee Project/Program Agreement Oct 2011
Loan Agreement (Special Operations) for Transport Connections in Northern Mountainous Provinces Project between Socialist Republic of Viet Nam and Asian Development Bank dated 2 December 2011 Loan Agreement (Special Operations) Oct 2011
Transport Connections in Northern Mountainous Provinces Project Reports and Recommendations of the President Sep 2011
Transport Connections in Northern Mountainous Provinces Project Summary Poverty Reduction and Social Strategies Sep 2011
Transport Connection in Northern Mountainous Provinces Project - Ha Giang Province Gender Action Plans Apr 2011
Transport Connection in Northern Mountainous Provinces Project - Cao Bang Province Gender Action Plans Apr 2011
Transport Connection in Northern Mountainous Provinces Project: Gender Action Development Plan for Yen Bai Province (as of Board approval) Gender Action Plans Apr 2011
Transport Connection in Northern Mountainous Provinces Project - Bac Kan Province Gender Action Plans Apr 2011
Transport Connection in Northern Mountainous Provinces Project - Lao Cai Province Gender Action Plans Apr 2011
Transport Connection in Northern Mountainous Provinces Project - Yen Bai Province Gender Action Plans Apr 2011
Transport Connection in Northern Mountainous Provinces Project - Tuyen Quang Province Gender Action Plans Apr 2011

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Transport Connections in Northern Mountainous Provinces Project: Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Aug 2015
Transport Connections in Northern Mountainous Provinces Project: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jan 2015
Transport Connections in Northern Mountainous Provinces Project: Quarterly Monitoring Report (October-December 2013) Social Monitoring Reports Dec 2013
Transport Connections in Northern Mountainous Provinces Project: Upgrading Provincial Road 176A, Ha Giang Province Resettlement Plans Oct 2013
Transport Connections in Northern Mountainous Provinces Project: Upgrading Road TL 183, Ha Giang Province Resettlement Plans Sep 2013
Transport Connections in Northern Mountainous Provinces Project: Upgrading Road TL 187, Tuyen Quang Province Resettlement Plans Aug 2013
Transport Connections in Northern Mountainous Provinces Project: Upgrading PR 202 Cao Bang Province Resettlement Plans Aug 2013
Transport Connections in Northern Mountainous Provinces Project: Upgrading PR 189 Tuyen Quang Province Resettlement Plans Aug 2013
Transport Connections in Northern Mountainous Provinces Project: Upgrading Road TL 156, Lao Cai Province Resettlement Plans Jul 2013
Transport Connections in Northern Mountainous Provinces Project: Upgrading Road TL 160, Lao Cai Province Resettlement Plans Jul 2013
Transport Connections in Northern Mountainous Provinces Project: Upgrading Road TL 151, Lao Cai Province Resettlement Plans Jul 2013
Transport Connections in Northern Mountainous Provinces Project: Upgrading PR 255-Section 2 Bac Kan Province Resettlement Plans Jul 2013
Transport Connections in Northern Mountainous Provinces Project: Upgrading Road TL 151B, Lao Cai Province Resettlement Plans Jul 2013
Transport Connections in Northern Mountainous Provinces Project: Upgrading Road TL 154, Muong Khuong District, Lao Cai Province Resettlement Plans Apr 2013
Transport Connections in Northern Mountainous Provinces Project: Upgrading Road TL 154, Muong Khuong District, Lao Cai Province (Vietnamese Translation) Resettlement Plans Apr 2013
Transport Connections in Northern Mountainous Provinces Project: Upgrading Road TL 163, Yen Bai Province Resettlement Plans Apr 2013
Transport Connections in Northern Mountainous Provinces: Tuyen Quang Province Resettlement Plans Apr 2011
Transport Connection in Northern Mountainous Provinces Project - Bac Kan Province Indigenous Peoples Plans/Indigenous Peoples Development Plans Apr 2011
Transport Connections in Northern Mountainous Provinces Project (Cao Bang Province) Initial Environmental Examination Apr 2011
Transport Connection in Northern Mountainous Provinces Project - Lao Cai Province Indigenous Peoples Plans/Indigenous Peoples Development Plans Apr 2011
Transport Connections in Northern Mountainous Provinces: Ha Giang Province Resettlement Plans Apr 2011
Transport Connections in Northern Mountainous Provinces Project (Lao Cai Province) Initial Environmental Examination Apr 2011
Transport Connections in Northern Mountainous Provinces Project (Bac Kan Province) Initial Environmental Examination Apr 2011
Transport Connection in Northern Mountainous Provinces Project - Tuyen Quang Province Indigenous Peoples Plans/Indigenous Peoples Development Plans Apr 2011
Transport Connections in Northern Mountainous Provinces Project (Yen Bai Province) Initial Environmental Examination Apr 2011
Transport Connections in Northern Mountainous Provinces: Lao Cai Province Resettlement Plans Apr 2011
Transport Connection in Northern Mountainous Provinces Project - Ha Giang Province Indigenous Peoples Plans/Indigenous Peoples Development Plans Apr 2011
Transport Connections in Northern Mountainous Provinces Project (Tuyen Quang Province) Initial Environmental Examination Apr 2011
Transport Connections in Northern Mountainous Provinces: Yen Bai Province Resettlement Plans Apr 2011
Transport Connection in Northern Mountainous Provinces Project - Cao Bang Province Indigenous Peoples Plans/Indigenous Peoples Development Plans Apr 2011
Transport Connections in Northern Mountainous Provinces Project (Ha Giang Province) Initial Environmental Examination Apr 2011
Transport Connections in Northern Mountainous Provinces: Cao Bang Province Resettlement Plans Apr 2011
Transport Connections in Northern Mountainous Provinces: Bac Kan Province Resettlement Plans Apr 2011

Evaluation Documents

See also: Independent Evaluation

No documents found.


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