41456-043: Water Sector Investment Program - Tranche 3 | Asian Development Bank

Viet Nam: Water Sector Investment Program - Tranche 3

Sovereign (Public) Project | 41456-043 Status: Active

The Asian Development Bank is working with Viet Nam to improve water services to over 1 million people, including over 17,500 poor households. The program is helping water supply companies strengthen their planning and financial and asset management capabilities, paving the way for lower subsidies, full cost recovery and reduced water losses. Tranche 3 supports seven companies.

Project Details

Project Officer
Ishii, Satoshi Southeast Asia Department Request for information
Country
  • Viet Nam
Modality
  • Loan
Sector
  • Water and other urban infrastructure and services
 
Project Name Water Sector Investment Program - Tranche 3
Project Number 41456-043
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3251-VIE: Supporting Viet Nam Water Sector, PFR 3
Ordinary capital resources US$ 142.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Water and other urban infrastructure and services / Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

In November 2014, Asian Development Bank (ADB) received the State Bank of Vietnam's periodic financing request letter for project 3 requesting $142.5 million to finance seven water companies (WSCs) having completed their project preparation and initiated advance action under project 2. The investments would improve water services for 1.2 million persons, including 17,500 poor households with their own piped water connection for the first time.

Project 3 outputs will support the multitranche financing facility (MFF) outputs: (i) increased coverage; (ii) improved business planning, financial management, and asset management; and (iii) effective nonrevenue water reduction for seven WSCs for the following: Bac Giang City, Cua Lo Town, Nghi Son Economic Zone, Tam Hiep-Dien Nam, Dien Ngoc Towns, Thai Hoa Town, Thai Nguyen City and Vinh City in four provinces.

Special features of project 3 include (i) promoting technical and financial sustainability by enforcing water tariff increase to full-cost recovery, while reducing subsidies and meeting targets of selected key performance indicators; (ii) providing access to finance for second-ranked WSCs willing to secure their debt through water tariff increase, resulting in greater access to safe water for the poor; and (iii) promotion of engineering, procurement, and construction (EPC) contracts.

The Ministry of Planning and Investment (MPI), coordinating agency for the MFF, is responsible for (i) selecting WSCs that can access the MFF, and (ii) consolidating reports with the assistance of the WSCs. Under project 3, the project management is delegated to the WSCs, and the provincial people committees (PPCs) are the executing agencies. Each WSC has set up a project management unit (PMU) in its organizational structure under project 2. The PMU organizes the procurement of consulting services and works. The MPI has no role in procurement.

Project 3 is structured with one loan to the government. The Ministry of Finance will sign seven subsidiary loan agreements with the participating WSCs with a letter of guarantee from the respective PPC, after the loan signing. Each WSC, acting as implementing agency, will implement its procurement plan separately. The MPI will consolidate the reporting with assistance of the WSCs. The project performance management information system was set-up under project 1 and applies to all subsequent tranches.

Project Rationale and Linkage to Country/Regional Strategy The project 3 impact will be the sustainable provision of safe water in Bac Giang, Nghe Anh, Quang Nam, Thai Nguyen, and Thanh Hoa Provinces. The outcome will be the improved efficiency of participating water companies. The project impact and outcome address the core sector problem of _Inefficient Water Service Delivery_ and contribute to the overall impact of the mutitranche financing facility sustainable provision of safe water in Viet Nam.
Impact Sustainable provision of safe water in Bac Giang, Nghe An, Quang Nam, Thai Nguyen, Thanh Hoa Provinces
Project Outcome
Description of Outcome improved efficiency of participating water supply companies.
Progress Toward Outcome The project is on track in 2017. Four water supply companies (WSCs), the implementing agencies, signed the sub-loan agreement (SLAs) with Ministry of Finance, Viet Nam. Four works packages was awarded for US$30 million. ADB is holding regular meeting with MPI, MOF, SBV and WSCs to address the 3 pending SLAs signing.
Implementation Progress
Description of Project Outputs

increased coverage

improved business planning, asset and financial management

nonrevenue water reduced.

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

In progress

In progress

In progress

Geographical Location Bac Giang, Cua Lo, Quang Nam, Thai Hoa, Thanh Hoa, Thanh Pho Thai Nguyen, Vinh
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

Project 3 is categorized B for environment, as environmental impacts are not reversible and primarily related to construction works and the safe disposal of sludge the WTPs produce. Those would be mitigated through environmental management plans (EMPs), covering design, pre-construction, construction, and operations phases. Climate resilience measures have been integrated into the project primarily pertaining to water availability as well as site preparation. Environmental impacts related to siting, design, construction, and operation, and mitigation measures for environment impacts are incorporated in the EMPs.

The final EMPs specific to each subproject, cleared by ADB, will form part of the contract bidding documents. The adequate incorporation of environmental considerations during design, and allocation of sufficient budget for operation and maintenance will mitigate the potential adverse impacts during operation. Water balance will be maintained by the water utilities through compliance with the Decree 201/2012 on water abstraction. Public consultations were conducted as part of the initial environment examinations (IEEs) and include communities upstream and downstream of water source and intake points. The IEEs will be updated during detailed design.

Involuntary Resettlement

Project 3 is categorized B for involuntary resettlement because the seven subprojects are assessed to cause potential nonsignificant involuntary resettlement impacts.

One subproject in Cua Lo, already completed land acquisition and resettlement activities for which a due diligence report is prepared. Land acquisition for the construction of the water treatment plan is about 8.2 ha, managed by Nghi Hoa communal people's Committee and 1.25 ha for booster pumping station and administration office is sandy soil and managed by Nghi Hoa ward of Cua Lo town. None of the 32 HHs own the affected land; local authorities had allowed people to temporarily plant trees and cultivate fish on public land. The compensation payments for all assets was paid to them and the due diligence report confirms the same. There are no gaps in accordance with MFF RF and no CAP is required.

Indigenous Peoples

Project 3 is categorized C for Indigenous Peoples. Due diligence confirmed that there are no ethnic minority peoples who may be considered Indigenous Peoples per the Safeguard Policy Statement present in the project 3 subprojects' areas.

Nevertheless, the MFF's indigenous peoples planning framework will guide the application of indigenous peoples safeguards should any unanticipated impact on ethnic minority communities arise during project 3's implementation

Stakeholder Communication, Participation, and Consultation
During Project Design The Water Companies have conducted stakeholders workshops during the project preparation.
During Project Implementation A Stakeholder Communication Plan is included into the Project Administration Manual. A Participation Plan is included into Supplementary Appendix 4.
Business Opportunities
Consulting Services Refer to above section
Procurement All procurement of goods and civil works will be carried out in accordance with ADB Procurement Guidelines (2013, as amended from time to time). All consulting services will be recruited in accordance with the Guidelines on the Use of Consultants (2013, as amended from time to time). All procurement will follow International Competitive Bidding. Preferred methods of consultants selection are quality- and cost-based selection (QCBS), using quality-cost ratio 90:10, and least cost selection (LCS). Other selection methods can be used with the prior approval of ADB and duly justified. Upon review of procurement thresholds by ADB and information provided by the detailed design, the WSC will propose and optimize the contract packaging for approval by ADB.
Responsible ADB Officer Ishii, Satoshi
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Bac Giang Water Supply and Sewerage One Mem Ltd Co
[email protected]
No. 386 Xuong Giang Street, Bac Giang
City, Bac Giang province
Cua Lo Water Supply One Member Limited Company
[email protected]
Nghi Tan Ward,Cua Lo Town,
Nghe An Province
Nghe An Water Supply One Member Limited Company
[email protected]
No. 32 Phan Dang Luu, Vinh City,
Nghe An Province
Quang Nam Wter Supply&Drainage Joint Stock Company
[email protected]
Lot 6, Phan Boi Chau Str, Tam Ky city,
Quang Nam province
Song Chu One Member Limited Company
[email protected]
24 Pham Banh, Ngoc Trao Ward, Thanh Hoa
City, Thanh Hoa Province
Thai Hoa Water Supply One Member Limited Company
[email protected]
Lien Thang, Hoa Hieu ward, Thai Hoa Town
,Nghe An Province
Thai Nguyen Water Joint Stock Company
[email protected]
Ben Oanh Street, Trung Vuong ward, Thai
Nguyen City, Thai Nguyen Province
Timetable
Concept Clearance -
Fact Finding 29 Aug 2014 to 05 Sep 2014
MRM 07 Oct 2014
Approval 27 Mar 2015
Last Review Mission -
Last PDS Update 25 Sep 2017

Loan 3251-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Mar 2015 19 Nov 2015 29 Mar 2016 31 Dec 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 169.00 Cumulative Contract Awards
ADB 142.50 27 Mar 2015 31.49 0.00 50%
Counterpart 26.50 Cumulative Disbursements
Cofinancing 0.00 27 Mar 2015 3.16 0.00 5%

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.

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
Viet Nam Water Sector Investment Program: Quang Nam Water Supply Subproject Updated Resettlement Plan Resettlement Planning Documents May 2017
Viet Nam Water Sector Investment Program: Initial Environmental Examination for Thai Nguyen Water Supply Subproject - Thai Nguyen City, Thai Nguyen Province Initial Environmental Examination Oct 2014
Viet Nam Water Sector Investment Program: Thai Hoa Water Supply Subproject Resettlement Plan Resettlement Plans Sep 2014
Viet Nam Water Sector Investment Program: Initial Environmental Examination for Cua Lo Water Supply Subproject - Cua Lo Town, Nghe An Province Initial Environmental Examination Sep 2014
Viet Nam Water Sector Investment Program: Initial Environmental Examination for Vinh Water Supply Subproject - Vinh City, Nghe An Province Initial Environmental Examination Sep 2014
Viet Nam Water Sector Investment Program: Thai Nguyen Water Supply Subproject Resettlement Plan Resettlement Plans Sep 2014
Viet Nam Water Sector Investment Program: Initial Environmental Examination for Nghi Son Subproject - Nghi Son Economic Zone, Thanh Hoa Province Initial Environmental Examination Sep 2014
Viet Nam Water Sector Investment Program: Bac Giang Water Supply Subproject Resettlement Plan Resettlement Plans Sep 2014
Viet Nam Water Sector Investment Program: Initial Environmental Examination for Thai Hoa Water Supply Subproject - Thai Hoa Town, Nghe An Province Initial Environmental Examination Sep 2014
Viet Nam Water Sector Investment Program: Nghi Son Water Supply Subproject Resettlement Plan Resettlement Plans Sep 2014
Viet Nam Water Sector Investment Program: Cua Lo Water Supply Subproject Resettlement Due Diligence Report Safeguards Due Diligence Reports Sep 2014
Viet Nam Water Sector Investment Program: Initial Environmental Examination for Quang Nam Water Supply Subproject - Dien Nam-Dien Ngoc and Tam Hiep, Quang Nam Province Initial Environmental Examination Sep 2014
Viet Nam Water Sector Investment Program: Quang Nam Water Supply Subproject Resettlement Plan Resettlement Plans Sep 2014
Viet Nam Water Sector Investment Program: Initial Environmental Examination for Bac Giang Water Supply Subproject - Bac Giang City, Bac Giang Province Initial Environmental Examination Sep 2014

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.

Tenders

Tender Title Type Status Posting Date Deadline
Project Financial Statements Audit Services Firm - Consulting Active 31 Aug 2017 29 Sep 2017
Construction Supervision Firm - Consulting Closed 08 Jul 2017 06 Aug 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CL-CW-01: CONSTRUCTION OF WATER SUPPLY SYSTEM OF CUA LO TOWN Loan 3251 31 Aug 2017 M/S SHAHID-M.A. ENTERPRISE JV ELIT HOUSE, 54 MOTIJEEL CA DHAKA BANGLADESH Local Government Engineering Department CONSTRUCTION 11598914 10544003
CONSTRUCTION SUPERVISION AND CONTRACT MANAGEMENT CONSULTANT, CUA LO SUBPROJECT (CL-CS-02) Loan 3251 25 Aug 2017 JV OF VIWASEE AND MEINHARDT (VIETNAM) LTD. 5 DUONG THANH ST., HOAN KIEM DIST. HANOI VIET NAM,SOC REP OF Quang Nam Wter Supply&Drainage Joint Stock Company Consulting Services 618023 561839
CONSTRUCTION SUPERVISION AND CONTRACT MANAGEMENT CONSULTING SERVICES Loan 3251 04 Aug 2017 JV OF INTEC AND SWS NO. 34D/249, DOI CAN STREET, NGOC HA WAR D, BA DINH DISTRICT, HA NOI - VIETNAM VIET NAM,SOC REP OF Quang Nam Wter Supply&Drainage Joint Stock Company Consulting Services 929782 843840
QN-CW02: SUPPLY OF EQUIPMENT AND CONSTRUCTION OF TRANSMISSION, DISTRIBUTION AND SERVICE PIPLINE AND METER OF THE COMPONENT OF DIEN NAM - DIEN NGOC Loan 3251 05 Jul 2017 PUMPS EUROPE JOINT STOCK COMPANY NO 13G CAO BA QUAT, DIEN BIEN WARD, BA D INH DISTRICT, HA NOI CITY VIET NAM,SOC REP OF Quang Nam Wter Supply&Drainage Joint Stock Company Construction 6534737 5937273
QN-CW03: SUPPLY OF EQUIPMENT AND CONSTRUCTION OF TRANSMISSION, DISTRIBUTION AND SERVICE PIPLINE AND METER OF THE COMPONENT OF TAM HIEP Loan 3251 05 Jul 2017 DAI PHU THINH CO., LTD 506 CACH MANG THANG TAM STREET, PHUOC TR UNG WARD, BA RIA CITY, BA RIA - VUNG TAU VIET NAM,SOC REP O Quang Nam Wter Supply&Drainage Joint Stock Company Construction 7743788 7035782
Supply of Equipment and Construction of Raw Water Pipline and Pumping Station, Water Treatment Plant of Two Component Dien Nam - Dien Ngoc & Tam Hiep Loan 3251 14 Jun 2017 JV of Dai Phu Thinh - Holland Water Supply Co. 507 Cach Mang Thang Tam Street, Phuoc Tr Ung Ward, Ba Ria City, Ba Ria - Vung Tau, Viet Nam, Soc Rep of Quang Nam Wter Supply&Drainage Joint Stock Company Construction 7185469 6520172

Procurement Plan