Viet Nam: Greater Mekong Subregion Corridor Towns Development Project

Sovereign Project | 43319-043

Summary

The project will enhance the competitiveness of towns along the East West Economic Corridor (EWEC) and the Southern Economic Corridor (SEC) and support the development of the GMS transport corridors into vibrant economic corridors. The project will transform the corridor towns of Dong Ha, Lao Bao, and Moc Bai into economic hubs by improving urban environmental infrastructure and strengthening institutional capacities of provincial and local authorities. Increased climate resilience through flood control measures will significantly improve the productivity of economic enterprises in these towns. Clean wastewater, solid-waste disposal, and enhanced mobility on improved urban roads will improve the environment. The project will provide environmental infrastructure, of which wastewater treatment and solid-waste management specifically will help to reduce the carbon footprint of these towns, making them cleaner, greener, and more livable. The project finances 10 subprojects in the three towns.

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Project Name Greater Mekong Subregion Corridor Towns Development Project
Project Number 43319-043
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Grant 0329-VIE: Greater Mekong Subregion Corridor Town Development Project
Urban Environmental Infrastructure Fund-UFPF Multi US$ 1.00 million
Loan 2969-VIE: Greater Mekong Subregion Corridor Town Development Project
Asian Development Fund US$ 130.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector Transport - Urban roads and traffic management - Water transport (non-urban)
Water and other urban infrastructure and services - Urban flood protection - Urban policy, institutional and capacity development - Urban sewerage - Urban solid waste management - Urban water supply
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will enhance the competitiveness of towns along the East West Economic Corridor (EWEC) and the Southern Economic Corridor (SEC) and support the development of the GMS transport corridors into vibrant economic corridors. The project will transform the corridor towns of Dong Ha, Lao Bao, and Moc Bai into economic hubs by improving urban environmental infrastructure and strengthening institutional capacities of provincial and local authorities. Increased climate resilience through flood control measures will significantly improve the productivity of economic enterprises in these towns. Clean wastewater, solid-waste disposal, and enhanced mobility on improved urban roads will improve the environment. The project will provide environmental infrastructure, of which wastewater treatment and solid-waste management specifically will help to reduce the carbon footprint of these towns, making them cleaner, greener, and more livable. The project finances 10 subprojects in the three towns.
Project Rationale and Linkage to Country/Regional Strategy

Strategic economic development. Improved transport connectivity among GMS countries has intensified urban links and established a solid foundation for more efficient movement of people, goods, and services. It has led to significantly increased trade and commerce in border districts and corridor towns. The towns and cities along the SEC and EWEC, which link Viet Nam with Cambodia and the Lao PDR, are well positioned to serve as dynamic centers of investment and economic growth. Given the tremendous economic opportunities, the corridor towns face the challenge of meeting the demands for urban infrastructure and essential support services which are a result of rapid urban population growth and urban expansion. With the proper enabling environment for strategic local economic development, provision of adequate infrastructure, and institutional capacity to manage future development, the corridor towns are expected to attract public sector investments in urban environment infrastructure and encourage private sector interest in urban economic infrastructure.

This project is phase 1 of a long-term engagement in GMS economic corridor towns, and is aligned with the strategic framework of the GMS Economic Cooperation Program, 2012 2022, approved by the Fourth GMS Summit on 19 20 December 2011. It is also in line with the Asian Development Bank (ADB) country partnership strategy, 2012 2015 for Viet Nam, and supports ADB's urban operational plan, 2012 2020 and water operational plan, 2011 2020.

Impact Dong Ha City, Lao Bao, and Moc Bai become dynamic economic growth centers in EWEC and SEC
Project Outcome
Description of Outcome Urban infrastructure and services are adequate and operate efficiently in Dong Ha City, Lao Bao, and Moc Bai
Progress Toward Outcome Recruitment of consultants for Project Management and Capacity Development ongoing.
Implementation Progress
Description of Project Outputs

1. SLEDPs are adopted and implemented in Dong Ha City, Lao Bao, and Moc Bai

2. Priority urban infrastructure implemented

3. Institutional capacities strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The environment category for the project is B, as the proposed subprojects are not expected to have irreversible adverse environmental impacts; any impacts are easily mitigated. Initial environmental examinations (IEEs) conducted for all the project cities identified potential impacts and mitigation measures to be implemented through environmental management plans (EMPs). The IEEs also included inputs from public consultations. The IEEs are in accordance with the ADB Safeguard Policy Statement (2009) and the applicable environmental regulations of the Government of Viet Nam. At the detailed design stage, when the EMPs are finalized and updated, the final receiving environments for the wastewater treatment plants and landfill will be reviewed to ensure that local groundwater and human uses of the areas are not adversely affected.

The final EMP, cleared by ADB, will form part of the contract bidding documents. Environmental considerations during design and allocation of sufficient budget for operation and maintenance (O&M) will help mitigate potential adverse impacts during operation. Effective environmental monitoring at all stages of subproject implementation will be ensured. In compliance with ADB's information disclosure and consultation requirements, the safeguard documents will be posted on ADB's website.

Involuntary Resettlement

The safeguard category for involuntary resettlement is A. Three resettlement plans have been prepared for the subprojects which will have land acquisition and resettlement impacts. Project information has been disclosed to affected people throughout project preparation and a project information booklet will be updated and distributed during detailed measurement survey.

Resettlement and environment documents have been prepared in consultation with local communities, agreeing with ADB's Safeguard Policy Statement and Government Decree No. 69, 2009 which govern resettlement and compensation.

Indigenous Peoples There are no indigenous peoples living near or close to the subproject sites in the three participating corridor towns. The small number of indigenous peoples in any of the subproject locations who are residing in remote villages will not be affected by the implementation of the subprojects. The project is assigned category C; therefore, there is no need to prepare an indigenous peoples plan.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

The Project will provide management support and assistance to the EAs in Quang Tri Province and in Tay Ninh Province through the respective Project Management Units (PMUs). This is intended to ensure that project implementation will fully comply with the national government regulations and with ADB's policies and operational requirements in terms of financial management, fund disbursement, procurement procedures, social and environment safeguards, and operation and maintenance (O&M).

A team of international and national consultants will be recruited by the EA to provide management support during Project implementation. The consultants will be engaged on an intermittent input basis during the 6-year Project period. The recruitment of the consultants will be undertaken in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time).

Procurement The laws to be followed for national competitive bidding are set forth in (i) the Law on Procurement No. 61/2005/QH11 of 29 November 2005, (ii) the Construction Law no. 16/2003/QH11 of 26 November 2003, (iii) the Amendment Law No. 38/2009/QH12 of 19 June 2009 amending and supplementing key articles of the above-mentioned two laws, and (iv) the processes described in Decree No. 85/2009/ND-CP of 15 October 2009 on Guiding Implementation of Procurement Law and Selection of Construction Contractors under the Construction Law . Whenever any procedure in the national procurement laws is inconsistent with the ADB Procurement Guidelines (April 2010, and as amended from time to time), the ADB Guidelines shall prevail.
Responsible ADB Officer Javier Coloma Brotons
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Urban Development and Water Division, SERD
Executing Agencies
Provincial People's Committee of Quang TriProvince45 Hung Vuong, Dong Ha Town, Quang Tri
Viet Nam
Tay Ninh Provincial People's CommitteeCach Mang Thang 8 St., Ward No. 2
Tay Ninh Town
Tay Ninh
Timetable
Concept Clearance -
Fact Finding 10 Apr 2012 to 20 Apr 2012
MRM 11 Sep 2012
Approval 12 Dec 2012
Last Review Mission -
PDS Creation Date 19 Apr 2010
Last PDS Update 31 Mar 2014

Grant 0329-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Dec 2012 17 Jan 2013 07 Jun 2013 30 Jun 2019 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1.00 Cumulative Contract Awards
ADB 0.00 12 Dec 2012 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 1.00 12 Dec 2012 0.00 0.00 0%

Loan 2969-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Dec 2012 17 Jan 2013 07 Jun 2013 30 Jun 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 146.19 Cumulative Contract Awards
ADB 130.00 12 Dec 2012 3.40 0.00 3%
Counterpart 16.19 Cumulative Disbursements
Cofinancing 0.00 12 Dec 2012 2.48 0.00 2%

Evaluation Documents

See also: Independent Evaluation

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