Viet Nam: Second GMS Southern Coastal Corridor Project (Additional Financing)

Sovereign Project | 41496-013

Summary

The proposed Second GMS-SCCP will (i) construct the remaining 84 km (between Ha Tien to Rach Gia) of QL80 route in Viet Nam; and (ii) upgrade Ha Tien (formerly Xa Xia) cross border facilities and streamline border crossing procedures, all under Additional Financing. In tune with one of the strategic thrusts of the GMS Strategic Framework (2012-2022), the proposed Second GMS-SCCP is a necessary precondition for promoting broader economic corridor development. Also, the project will facilitate Viet Nam's plans for implementing ASEAN Single Window border crossing mechanism by 2015. In addition, the project will target mainstreaming gender imbalances, preventing human trafficking and HIV/AIDS, mitigating/adapting to climate change impacts, strengthening institutional capacity, and facilitating regional cooperation between Cambodia and Viet Nam.

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Project Name Second GMS Southern Coastal Corridor Project (Additional Financing)
Project Number 41496-013
Country Viet Nam
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: GMS Southern Coastal Corridor Development Project 2
Ordinary capital resources US$ 226.00 million
Asian Development Fund US$ 100.00 million
Strategic Agendas
Drivers of Change
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming
Description The proposed Second GMS-SCCP will (i) construct the remaining 84 km (between Ha Tien to Rach Gia) of QL80 route in Viet Nam; and (ii) upgrade Ha Tien (formerly Xa Xia) cross border facilities and streamline border crossing procedures, all under Additional Financing. In tune with one of the strategic thrusts of the GMS Strategic Framework (2012-2022), the proposed Second GMS-SCCP is a necessary precondition for promoting broader economic corridor development. Also, the project will facilitate Viet Nam's plans for implementing ASEAN Single Window border crossing mechanism by 2015. In addition, the project will target mainstreaming gender imbalances, preventing human trafficking and HIV/AIDS, mitigating/adapting to climate change impacts, strengthening institutional capacity, and facilitating regional cooperation between Cambodia and Viet Nam.
Project Rationale and Linkage to Country/Regional Strategy

The Second Greater Mekong Subregion (GMS) Southern Coastal Corridor Project (Second GMS-SCCP) is proposed to complement the first project approved in 2007 and will construct the missing sections of this GMS road corridor in Kien Giang province in the southern coastal area of Viet Nam. The project preparatory technical assistance (PPTA) to prepare the first project identified 51.5 kilometers (km) of roads in Cambodia and 218.0 km of roads in Viet Nam to be improved along the southern coastal corridor (SCC). As part of the first project, Asian Development Bank (ADB) approved a cofinanced loan and administration of grant from Australia to the Government of Viet Nam under which ADB provided a $75 million ADF loan, the Government of Australia a $25.5 million grant, and the Government of Korea, a $50 million loan to improve approximately 96 km (of the previously indentified 218.0 km), including improvement of cross-border facilities between Viet Nam and Cambodia, and an HIV/AIDS and human trafficking awareness and prevention program.

The SCC is one of three main subcorridors of the Southern Economic Corridor (SEC), and one of 11 flagship programs endorsed by the First GMS Summit in Cambodia in November 2002. The other two SEC subcorridors are: the Central Subcorridor and the Northern Subcorridor. The upgrading of these three subcorridors will significantly improve subregional economic cooperation among Cambodia, Lao People's Democratic Republic, Thailand, and Viet Nam. Most of the sections of the SCC within Thailand and Cambodia are complete or under construction, and with the implementation of the Second GMS-SCCP, the improvement of the SCC will largely be complete from Bangkok to Ca Mau. These efforts, when fully implemented, will significantly improve subregional economic cooperation and trade, boost economic growth in the project area, provide jobs for the local population, and improve access to social services.

Impact Promoting economic growth in the project area and GMS by strengthening connectivity with neighboring countries and increasing competitiveness
Outcome Reduce transport times and costs, and induce more efficient movement of passengers and goods within the project area and between GMS countries
Outputs

Completion of the road and bridge improvements and expansion and modernization of border facilities enabling efficient cross-border passenger and freight transport

Enhanced capacity of the executing and/or implementing agencies

Geographical Location
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects Project will require new road alignment and will disturb primarily agricultural land. Project is located at the coastal area, prone to floods and crosses number of rivers and canals. Magnitude of impact will be studied during PPTA.
Involuntary Resettlement About 500 hectares of land will be required for construction which will displace people from their housing, businesses and productive land. Magnitude of impact will be studied during PPTA.
Indigenous Peoples

Khmer ethnic minority group accounts for about 12% of the population in Keing Giang Province. However, they tend to be concentrated in various localities and so the numbers of Khmer households in the Project area is not yet known. Khmer people tend to be poorer than the Kinh ethnic majority.

The Project is not expected to have a differential impact on Khmer people than the majority ethnic Kinh and an ethnic minority development plan is not expected to be required. Impacts on Khmer ethnic minorities are expected to be limited to land acquisition.

Stakeholder Communication, Participation, and Consultation
During Project Design

Project stakeholders include local government authorities and provincial people's committee in Kien Giang province, local population, businesses, road users and transporters.

During the feasibility study of the first project, consultations were held with relevant stakeholders including the communities affected by the road. The community perspective, in terms of positive and negative impacts, was discussed. The community felt that roads to market and school would be more accessible because of the project. Less vehicle damage was considered an important benefit because of the improved road. Road safety was noted as a serious concern of local residents.

During the PPTA consultations will be conducted with key stakeholders, community-based organizations (CBOs), and communities in the project areas regarding resettlement, environment, risks of HIV/AIDS and human trafficking. The mode of consultations will be through workshop meetings (key stakeholders and CBOs) as well as public meetings and focus group discussions (local communities).

During Project Implementation
Business Opportunities
Consulting Services Consulting services will be required for developing detailed engineering designs, procurement assistance, construction supervision, and social and environmental safeguards management and assistance to the project's executing agency. These services are expected to be procured in Q2 2013.
Procurement Procurement will include civil works to construct roads and bridges and will be procured following ADB's Procurement Guidelines through international competitive bidding procedures. Scope, type and value of contracts will be determined after the completion of the detailed engineering designs. Procurement expected to start in Q2 2014. There are no goods expected to be procured at this stage.
Responsible ADB Officer Shihiru Date
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Ministry of Transport80 Tran Hung Dao
Ha Noi, Viet Nam
Timetable
Concept Clearance 08 Mar 2016
Fact Finding 09 Mar 2016 to 22 Mar 2016
MRM 15 May 2016
Approval 21 Oct 2016
Last Review Mission -
Last PDS Update 31 Mar 2015

Safeguard Documents

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Evaluation Documents

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