Viet Nam: VIE: Second Northern GMS Transport Network Improvement

Sovereign Project | 41444-013

Summary

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

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Procurement Documents


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Project Name VIE: Second Northern GMS Transport Network Improvement
Project Number 41444-013
Country Viet Nam
Project Status Approved
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

All ICB civil works have been awarded and contracts signed. Construction is ongoing for all sections since 1Q 2014. Contracts are expected to be completed in 2 years or around 2016.

Two additional civil works contracts for 2.7 km road sectiona nd bridge construction are expected to be procured using NCB method in Q2, 2016

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) Cam Thuy East (1.5km) and West (1.4km) Bypasses is completed and opened to traffic as of December 2014.

(ii) Km 107.2 to km 195.4 physical progress varies from 16% to 37% with negative slippages varying from -1% to -5%.

Progress towards achieving the gender specific targets reviewed during midterm review and some revisons were required, and will continually be monitored.

HIV/AIDs consultants work still ongoing.

Road Safety audit have been undertaken, measures incorporated in design and being implemented.

Two more contract packages are being procured and expected award by 2Q 2015.

Project has been scalled up to (i) improve 45 km road section originally planned to be maintained for which additional financing is proposed, (ii) improve additional 2.7 km road section originally planned to be improved by using state budget, and (iii) contsruct a new bridge at km 38.4 with approach roads. Existing project will update the FS and detailed design for the above road section.

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

- NCB contract with a value of $2.6 million is expected for award in Q2 2013

- ICB contracts with a value of $72 million are expected for award in Q3 2013

Responsible ADB Officer Erdene Oyunchimeg
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Ministry of TransportRU-PMU1@FPT.VN80 Tran Hung Dao
Ha Noi, Viet Nam
Timetable
Concept Clearance 23 Jul 2010
Fact Finding 20 Jul 2010 to 30 Jul 2010
MRM 19 Aug 2009
Approval 25 Nov 2010
Last Review Mission -
PDS Creation Date 14 Oct 2009
Last PDS Update 26 Mar 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 4.23 0.00 21%

Loan

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 12.30 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 3.30 Cumulative Disbursements
Cofinancing 9.00 - 0.00 0.00 %

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 59.08 0.00 88%
Counterpart 22.40 Cumulative Disbursements
Cofinancing 0.00 25 Nov 2010 21.45 0.00 32%

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 - -
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 1.38 12%

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
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 Plan: Viet Nam Resettlement Plans 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

No documents found.


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