Viet Nam: VIE: Second Northern GMS Transport Network Improvement

Sovereign Project | 41444-013 Status: Active

Summary

ADB is helping the Lao People's Democratic Republic and Viet Nam upgrade roads in the northeastern transport corridor. The project will improve 340 kilometers of roads, which form part of a corridor stretching from Thanh Hoa in northern Viet Nam, through Lao PDR, to Bangkok, Thailand. It is expected to boost transport efficiency as well as economic activities in the Greater Mekong Subregion.

Latest Project Documents

Consulting Notices See also: CMS

No notices are currently available for this project.

Procurement Notices See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

 
Project Name VIE: Second Northern GMS Transport Network Improvement
Project Number 41444-013
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0234-VIE: LAO: Second Northern GMS Transport Network Improvement
Asian Development Fund US$ 20.00 million
Loan 2703-VIE: VIE: Second Northern GMS Transport Network Improvement
Asian Development Fund US$ 75.00 million
Loan 8255-VIE: LAO: Second Northern GMS Transport Network Improvement
OPEC Fund for International Development US$ 12.00 million
Loan: LAO: Second Northern GMS Transport Network Improvement Project
OPEC Fund for International Development US$ 9.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The GMS Northeastern Corridor (stretching from Thanh Hoa in northern Viet Nam through northern Lao PDR to Bangkok) is one of the corridors identified in the transport sector

strategy study and links northeastern Lao PDR with northern Viet Nam and its seaports. Many of the corridor roads between Thanh Hoa and Bangkok are in good condition. Others are now being improved, including a 367-kilometer (km) stretch of Route 4 in the Lao PDR from the Louangphrabang area to the Lao PDR Thailand border that is being upgraded under ADB's Northern GMS Transport Network Improvement Project, approved in 2007. The section of the corridor between the coast through the provinces of Thanh Hoa in northern Viet Nam and Houaphanh in northeastern Lao PDR, however, needs to be improved to a higher, all-weather, international standard if the Northeastern Corridor is to deliver its full potential increase in traffic, trade, and economic development and give the northern region of the Lao PDR valuable yearround access to rapidly developing ports on the South China Sea. The proposed project will fill this key gap. It was accorded priority in the GMS transport sector study and is strongly supported by the governments of the Lao PDR and Viet Nam, which believe it will strengthen the economies of both countries and help reduce current high poverty rates in the project provinces on both sides of their border. The project is included in the GMS regional cooperation business plan for 2010 2012.

Road maintenance and vehicle overloading are key issues affecting the sustainability of road projects in Viet Nam and the Lao PDR. Both governments have agreed to maintain the

project roads to the national standard. In Lao PDR, this will be done through the use of performance-based maintenance contracts. In Viet Nam, performance-based maintenance

contracts will also be used for the project road, subject to the successful outcome of ongoing pilot tests of these contracts. MOT will develop a program to control vehicle overloading of vehicles on the project road in Viet Nam. To address vehicle overloading in the Lao PDR, scales for weighing vehicles will be procured under the project, and checkpoints to control the overloading of vehicles will be established along the project roads.

Project Rationale and Linkage to Country/Regional Strategy

The poor state of such basic infrastructure as roads is a major obstacle to building subregional economic cooperation among the six countries that border the Mekong River.

Under the GMS program, which it helped establish in 1992, ADB has supported the creation of strategic transport and economic corridors linking Cambodia, the People's Republic of China, the Lao PDR, Myanmar, Thailand, and Viet Nam. After a summit of GMS leaders in July 2005 highlighted the key role of comprehensive, efficient cross-border transport in promoting trade, investment, resource development and sharing, and the free movement of goods and people between their countries, ADB provided technical assistance to prepare the GMS transport sector strategy study. The study recommended the establishment of a seamless, well-built, multimodal subregional transport network to fully connect the GMS. The sector strategy's objectives were to complete the transport corridors; coordinate GMS country efforts to develop these transport routes into economic corridors of agricultural diversification, industrialization, and employment creation; reduce nonphysical barriers to the movement of people, goods, and services within the subregion; and accelerate the implementation of such arrangements as the GMS cross-border transport agreement.

The GMS cross-border transport agreement was incorporated in the GMS program in 1999 to support trade facilitation. The agreement covers various aspects of cross-border

transport facilitation in the GMS. All the GMS countries have finalized and signed all annexes and protocols in the agreement, and most countries have ratified all of the annexes and

protocols. The agreement is already under initial implementation at three border crossing points along the Lao PDR Viet Nam, Thailand Lao PDR, and PRC Viet Nam borders. Agreements have been signed on additional border crossings for implementation along the PRC Lao PDR and Cambodia Viet Nam borders.

Impact International trade on the GMS Northeastern Corridor increases

Project Outcome

Description of Outcome Transport across the Lao PDR-Viet Nam border and on the project sections of the GMS Northeastern Corridor becomes more efficient
Progress Toward Outcome During MTR in March 2015, the community-based road safety awareness program proposal was discussed and agreed for implementation.
Implementation Progress
Description of Project Outputs

The project components of the GMS Northeastern Corridor in Viet Nam are improved

Road safety on the project sections of Northeastern Corridor is improved

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

(i) Bypasses in Cam Thuy completed,

(ii) The main contracts (10-1 to 3) and (11-1 to 3) are about 41% complete in aggregate with an overall slippage of (-) 6.7%.

(iii) 2 additional small NCB contracts were signed in June 2015.

(iv) women participation for unskilled works are estimated upto 20%

(v) community-based road safety awareness and HIV/AIDS awareness and human trafficking prevention programs are ongoing

Will be assessed at completion

Geographical Location

Safeguard Categories

Environment B
Involuntary Resettlement A
Indigenous Peoples B

Summary of Environmental and Social Aspects

Environmental Aspects Based on the initial environmental examination (IEE) reports prepared for the Lao PDR and Viet Nam components the project is not expected to have significant environmental impacts. None of the project roads traverses buffer or core zones of ecologically or culturally protected areas. The adverse environmental impacts will come largely during construction from dust and noise, surface run-off, erosion, traffic and utility disruptions, potential occupational and community health and safety risks, and disposal of excavated materials. Environmental management plans (EMPs) detailing mitigation measures and monitoring activities have been prepared as part of the IEEs to avoid or reduce anticipated negative project impacts. These plans also require the design and supervision consultant (DSC) to draft site-specific EMPs (SEMP) or method statements during the detailed design phase. The SEMP will include the following subplans: (i) waste management and spoil disposal plan, (ii) materials management plan, (iii) drainage management plan, (iv) erosion control plan, (v) temporary transport management plan, (vi) utilities and irrigation reprovisioning plan, (vii) noise and dust control plan, and (viii) workers and public safety plan. The contractor will be required to update these EMPs before work begins at the sites.
Involuntary Resettlement

There are about 8,913 households (35,652 people) in Viet Nam and about 147 households in the Lao PDR which will lose a small portion of land. Only 6 households will require relocation in the Lao PDR and no relocation will be

necessary in Viet Nam. The Resettlement Plans have been endorsed and disclosed by MOT in Viet Nam and MPWT in the Lao PDR. MOT will submit (i) addendium RPs, in April and May 2015, for the additional two contract packages namely for 2.7 km road section and new bridge which affect additional 619 HHs; and (ii) the compensation plan, replacement cost survey report for the additional 3 HHs affected by road alignment chnage of the approach road to Cao Cot Bridge in Quan Son district by 30 april 2015.

Indigenous Peoples The ethnic minority populations of the districts closest to Thanh Hoa City are very small, but ethnic minorities comprise almost the entire population of the two project area districts In Viet Nam closest to the Lao PDR border. The same is true of the two project area districts on the Lao PDR side of the border. The ethnic communities in the Lao PDR have been living along the project road since the 1970s. The project will not (i) affect any customary rights to resources or land; (ii) negatively affect the socioeconomic status of the ethnic groups; (iii) reduce their cultural and community integrity; (iv) affect their health, education, livelihood, and/or social security status; or (v) alter or undermine the recognition of indigenous knowledge. Impacts on ethnic minorities will be addressed through the Resettlement Plans. The Resettlement and Ethnic Minorities Framework and Resettlement and Ethnic Communities Framework have been endorsed by the MOT in Viet Nam and the MPWT in the Lao PDR, respectively.
Stakeholder Communication, Participation, and Consultation
During Project Design A series of meetings was held at the village and household level during preparation of a resettlement plan and a social impact assessment. Consultations were also held separately with women and other vulnerable groups.
During Project Implementation

During the project implementation, information sharing and consultations will be held with the concerned project stakeholders to ensure sustained support for the project throughout implementation stage.

During mid term review, ADB and Government held consultation meeting with stakeholders of Cam Thuy and Ba Thuoc districts to hear their feedback on the implementation of the project and environmental and resttlement activities.

Business Opportunities

Consulting Services

- Consultants will be selected in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time).

- Contract for detailed design and construction supervision was awarded to joint venture of Yooshin Engineering Corporation and Nippon Koei Co. Ltd. in May 2012

- Selection of consultants for external audit, HIV/AIDS and human trafficking prevention, and independent resettlement monitoring have been completed.

Procurement

- All procurement will be undertaken in conformity with ADB's Procurement Guidelines (2010, as amended from time to time).

- Updated procurement plan was approved by ADB in March 2013. Major civil works have been procured http://www.adb.org/sites/default/files/projdocs/2012/41444-013-vie-pp.pdf

-all contracts have been awarded

Responsible Staff

Responsible ADB Officer Oyunchimeg Erdene
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Ministry of Transport
RU-PMU1@FPT.VN
80 Tran Hung Dao
Hanoi, Viet Nam

Timetable

Concept Clearance 23 Jul 2010
Fact Finding 20 Jul 2010 to 30 Jul 2010
MRM 19 Aug 2009
Approval -
Last Review Mission -
PDS Creation Date 14 Oct 2009
Last PDS Update 25 Sep 2015

Grant 0234-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Nov 2010 08 Dec 2010 03 Feb 2011 31 Dec 2016 31 Dec 2018 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 30.30 Cumulative Contract Awards
ADB 20.00 25 Nov 2010 17.46 0.00 87%
Counterpart 10.30 Cumulative Disbursements
Cofinancing 0.00 25 Nov 2010 8.47 0.00 42%

Loan 2703-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Nov 2010 23 Feb 2011 07 Jun 2011 31 Dec 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 97.40 Cumulative Contract Awards
ADB 75.00 25 Nov 2010 59.63 0.00 88%
Counterpart 22.40 Cumulative Disbursements
Cofinancing 0.00 25 Nov 2010 40.92 0.00 60%

Loan 8255-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Mar 2011 26 Jan 2012 12 Dec 2012 14 Jun 2016 31 Dec 2018 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 12.00 Cumulative Contract Awards
ADB 0.00 17 Mar 2011 0.00 7.68 64%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 12.00 17 Mar 2011 0.00 2.34 19%
Title Document Type Document Date
Loan Agreement (Special Operations) for Loan 3317-VIE: Second Northern Greater Mekong Subregion Transport Network Improvement Project - Additional Financing Loan Agreement (Special Operations) Feb 2016
Second Northern Greater Mekong Subregion Transport Network Improvement Project (Additional Financing): Gender Action Plan Gender Action Plans Oct 2015
Second Northern Greater Mekong Subregion Transport Network Improvement Project (Additional Financing): Report and Recommendation of the President Reports and Recommendations of the President Oct 2015
Second Northern Greater Mekong Subregion Transport Network Improvement Project (Additional Financing): Project Administration Manual Project/Program Administration Manual Oct 2015
Second Northern Greater Mekong Subregion Transport Network Improvement Project (Additional Financing): Procurement Plan Procurement Plans Sep 2015
Second Northern Greater Mekong Subregion Transport Network Improvement Project: Viet Nam Procurement Plans Apr 2014
Loan Agreement for Second Northern Greater Mekong Subregion Transport Network Improvement Project - Viet Nam Component between Socialist Republic of Viet Nam and Asian Development Bank dated 23 February 2011 Loan Agreement (Special Operations) Feb 2011
Grant Agreement for Second Northern Greater Mekong Subregion Transport Network Improvement Project - Lao PDR Component between Lao People’s Democratic Republic and Asian Development Bank dated 08 December 2010 Grant Agreement Dec 2010
Second Northern Greater Mekong Subregion Transport Network Improvement Project Summary Poverty Reduction and Social Strategies Nov 2010
Second Northern Greater Mekong Subregion Transport Network Improvement Project Gender Action Plans Nov 2010
Second Northern Greater Mekong Subregion Transport Network Improvement Project Reports and Recommendations of the President Nov 2010
Second Northern GMS Transport Network Improvement Project (Viet Nam Component) Project/Program Administration Manual Oct 2010

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Second Northern GMS Transport Network Improvement Project: Social Monitoring Report Social Monitoring Reports Mar 2016
Second Northern Greater Mekong Subregion Transport Network Improvement Project: NH217 Improvement, Thanh Hoa Province - Resettlement and Ethnic Minority Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Nov 2015
Second Northern GMS Transport Network Improvement Project - Viet Nam: Resettlement Plan (November 2010) and Addendum (October 2015) Resettlement Plans Oct 2015
Second Northern GMS Transport Network Improvement Project: Semiannual Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Jul 2015
Second Northern GMS Transport Network Improvement Project - Upgrading of National Highway 217 (NH217), Thanh Hoa Province, Phase 1: Social Monitoring Report Social Monitoring Reports Jul 2015
Second Northern GMS Transport Network Improvement Project - Upgrading of National Highway 217 (NH217), Thanh Hoa Province, Phase 1: Cam Thuy Socioeconomic Baseline Survey Report (August 2014) Social Monitoring Reports Aug 2014
Second Northern GMS Transport Network Improvement Project - Upgrading of National Highway 217 (NH217), Thanh Hoa Province, Phase 1: Quan Son and Ba Thuoc Districts Baseline Survey Report (August 2014) Social Monitoring Reports Aug 2014
Second Northern Greater Mekong Subregion Transport Network Improvement Project: Quarterly Environmental Monitoring Report (April-June 2014) Environmental Monitoring Reports Jul 2014
Second Northern GMS Transport Network Improvement Project: Quan Son District Section Combined Resettlement Plan and Indigenous Peoples Plans Dec 2013
Second Northern GMS Transport Network Improvement Project: NH217 Improvement, Phase 1 - The HIV/ AIDS and Human Trafficking Awareness and Prevention Program Social Monitoring Reports Nov 2013
Second Northern GMS Transport Network Improvement Project: Ba Thuoc District Section Combined Resettlement Plan and Indigenous Peoples Plans Nov 2013
Second Northern GMS Transport Network Improvement Project - Upgrading of National Highway 217 (NH217), Thanh Hoa Province, Phase 1: Resettlement Plan Monitoring Report (August 2013) Social Monitoring Reports Aug 2013
The Second Northern Greater Mekong Sub-region Transport Network Improvement Project Resettlement Plans Mar 2013
Second Northern GMS Transport Network Improvement Project: Upgrading of National Highway 217, Thanh Hoa Province, Phase 1: Inception Report Social Monitoring Reports Jan 2013
Second Northern Greater Mekong Subregion Transport Network Improvement Project: Environmental Assessment and Review Framework: Lao People's Democratic Republic Environmental Assessment and Review Framework Nov 2010
Second Northern Greater Mekong Subregion Transport Network Improvement Project: Environmental Assessment and Review Framework: Viet Nam Environmental Assessment and Review Framework Nov 2010
Second Northern Greater Mekong Subregion Transport Network Improvement Project: Initial Environmental Examination: Lao People's Democratic Republic Initial Environmental Examination Nov 2010
Second Northern Greater Mekong Subregion Transport Network Improvement Project: Initial Environmental Examination: Viet Nam Initial Environmental Examination Nov 2010
Second Northern Greater Mekong Subregion Transport Network Improvement Project: Resettlement Framework: Viet Nam Resettlement Frameworks Nov 2010
Second Northern Greater Mekong Subregion Transport Network Improvement Project: Resettlement Framework (Viet Nam) Resettlement Frameworks Oct 2010
Second Northern Greater Mekong Subregion Transport Network Improvement Project (Viet Nam) Resettlement Plans Oct 2010
Second Northern Greater Mekong Subregion Transport Network Improvement Project (Lao PDR) Initial Environmental Examination Oct 2010
Second Northern Greater Mekong Subregion Transport Network Improvement Project (Viet Nam) Initial Environmental Examination Aug 2010
Second Northern Greater Mekong Subregion Transport Network Improvement Project (Lao PDR) Environmental Assessment and Review Framework Aug 2010
Second Northern Greater Mekong Subregion Transport Network Improvement Project (Viet Nam) Environmental Assessment and Review Framework Jul 2010

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.