Viet Nam: Support to Central and Local Governments to Implement Urban Environmental Improvement Programs

Sovereign Project | 44003-012

Summary

The objective of this CDTA is to help prepare, support and advise the Central and Local Government Agencies for the implementation of large scale programmes and projects that are to bring environmental improvements to urban areas, by planning and implementing appropriate interventions in the collection, treatment and disposal of wastewater. The CDTA will assist Central Government and Provincial and City People's Committees in providing a better understanding of the range of options available in wastewater collection treatment and disposal, and their financial, institutional, social and environmental implications. The CDTA should result in better informed project preparation, and more focused and effective implementation of environmental infrastructure projects.

Rationale

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Project Name Support to Central and Local Governments to Implement Urban Environmental Improvement Programs
Project Number 44003-012
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7885-VIE: Support to Central and Local Governments to Implement Urban Environmental Improvement Programs
Japan Fund for Poverty Reduction US$ 2.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector Public sector management - Decentralization
Water and other urban infrastructure and services - Urban water supply
Gender Equity and Mainstreaming Some gender elements
Description

The objective of this CDTA is to help prepare, support and advise the Central and Local Government Agencies for the implementation of large scale programmes and projects that are to bring environmental improvements to urban areas, by planning and implementing appropriate interventions in the collection, treatment and disposal of wastewater. The CDTA will assist Central Government and Provincial and City People's Committees in providing a better understanding of the range of options available in wastewater collection treatment and disposal, and their financial, institutional, social and environmental implications. The CDTA should result in better informed project preparation, and more focused and effective implementation of environmental infrastructure projects.

Rationale

With less than 10% of the country being sewered and Viet Nam being one of the top five countries subject to severe impact due to climate change, the development of the sanitation sector is not keeping pace with the national and local economic development , and with the improvement made in urban water supply services. As indicated in the ADB's financed water sector review technical assistance completed in March 2009, considerable effort and investment are still required to achieve these targets and protect essential water resources

In developing programmes and projects for sanitation improvements, many strategic technical and financial options are available. Constructing conventional sewerage systems in existing built-up urban areas is extremely complex, disruptive and costly. Pragmatic alternatives therefore need to be considered. Options need to include considerations on a mix of conventional sewerage and low cost sanitation, centralized or de-centralized systems, separate or combined wastewater and stormwater systems, combining or separating municipal and industrial wastewater. Other programme components may involve dedicated programs for schools, re-use of water and organics, strengthening community awareness. Choices will depend on the socio-geographical environment, population density, levels of water usage, affordability, institutional arrangements and access to skills, etc.

Many cities located in the coastal zone of Viet Nam are likely to experience early impacts of climate change, in particular due to sea level rising. As a result, schemes for the drainage of urban stormwater and wastewater, and for flood protection, have to be designed based on a revised assessment of risks. Climate change therefore needs to be at the core of the urban environment planning process.

The CDTA will be delivered by working directly with relevant levels of government (at central, provincial and city level) in the development, planning and implementation of pragmatic and affordable urban environmental improvements. Lessons will be learned from the impact of recent wastewater management programmes in urban areas in Viet Nam.

Country Strategy

Government's strategies on urban sanitation improvement are formulated in Decree 88/2007 which requires sanitation to be charged through the water tariff at a minimum of 10% to achieve cost recovery and large subsidies for capital investment. Government policy has set clear targets and new directives on sanitation: Under the umbrella of Decree 88/2007, the recently approved (November 2009) Orientation Plan for Urban Sanitation to 2025 sets ambitious targets of 70% sewerage collection in large cities by 2025 as well as on industrial wastewater management.

The Vietnamese Development Goals target relevant to Sanitation "ensuring that all wastewater in towns and cities is treated by 2010" will not be reached. Some statistics will count "access to sanitation" as having achieved a target of safe disposal. In reality the still wide-spread use of not-maintained septic tanks in urban areas and latrines in rural areas does not represent a safe or final form of treatment in areas with high population densities. Future programs will therefore need to target human waste disposal in such areas. The scale of such future programs will have to be considerable, to have any significant impact. Efforts by Government and development partners alike therefore aim to increase the spending on urban wastewater management programmes in the coming decade.

Against this background, ADB's Country Support Program 2007-2010 aimed to ensure the delivery of sustainable investment reform and capacity building in urban water services to support sustainable local economic development in cities. Investment lending is therefore dedicated to cities and peri-urban areas, to (i) support the rehabilitation, upgrading, and expansion of water supply and sanitation in the urban centres to improve the investment environment and private sector participation; (ii) ensure equitable access to safe water supply and sanitation facilities and improve the health profile of the urban residents, including women and ethnic minorities; and (iii) encourage policy changes and institutional reforms at central and provincial levels to enable sustainable development by making Urban Environmental Companies (URENCOs) and water supply companies financially viable through enforcement of local regulation on full cost recovery and definition of performance indicators through benchmarking. The Draft Socioeconomic Development Plan 2011 -2015, in which ADB's next Country Strategy Framework will be based, makes environmental protection a cornerstone of the economic growth.

Government's Decree 131 has delegated the responsibility for the design and implementation of development projects to the City Peoples Committees (CPC) and Provincial People's Committees (PPCs). The responsibility of the implementation of urban environmental infrastructure programmes lies with CPC, PPCs, District People's Committees (DPCs), water supply companies and URENCOs.

Project Rationale and Linkage to Country/Regional Strategy

The Government's strategies on urban sanitation improvement are formulated in Decree 88/2007, which requires sanitation to be charged through the water tariff at a minimum of 10% (from up to 10% in the previous legislation) to achieve cost recovery for operation and maintenance and large subsidies for capital investment. The Government's policy has set clear targets and new directives on sanitation with a planned update of the legislation, in line with the draft legislation on water resources currently being prepared and enforcing the ?polluter pays principle?. Under the umbrella of Decree 88/2007, the recently approved Decision 1930/2009 Orientation Plan for Urban Sanitation to 2025 sets ambitious targets of 70% sewage collection in large cities by 2025. The Draft Socioeconomic Development Plan (SEDP) 2011-2015 also includes targets for industrial wastewater management to increase from 40% to 80% and makes environmental protection a cornerstone of economic growth.

ADB's Country Strategy and Program 2007-2010 aimed to ensure the delivery of sustainable investment reform and capacity building in urban water services to support sustainable local economic development in cities. Investment lending is therefore dedicated to cities and peri-urban areas, to (i) support the rehabili?tation, upgrading, and expansion of water supply and sanitation in the urban centers to improve the investment environment and private sector participation; (ii) ensure equitable access to safe water supply and sanitation facilities and improve the health profile of the urban residents, including women and ethnic minorities; and (iii) encourage policy changes and institutional reforms at central and provincial levels to enable sustainable development by making Urban Environmental Companies (URENCOs) financially viable, through enforcement of local regulation on cost recovery and definition of performance indicators through service contracts. The Viet Nam WSS ASR highlights the need to design projects that are technically and financially sustainable, especially in sanitation and wastewater management by promoting innovative and evolutive technical solutions to the WSS sector.

Impact The impact of the project will be (i) to improve the awareness amongst government planners and decision makers at central, provincial and local level on appropriate financial and technological approaches to urban wastewater management options, and as a result, (ii) to achieve better informed project design; and (iii) to attain greater efficiency and reduced delays in the implementation of projects supported by development partners.
Project Outcome
Description of Outcome The outcome of the CDTA will be to a more targeted formulation of future sanitation programs through improved ownership and understanding, greater efficiency and reduced delays in the planning and implementation of urban environmental improvement projects.
Progress Toward Outcome

Completion of Inception Stage and agreement with Ministry of Construction on scope of works and deliverables.

10 City Sanitation Strategies initiated

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

Inception phase to completed in September 2013

City Sanitation Strategy to be implemented from October 2013 to December 2014

Output Studies to be implemented in 2014-215

Policy papers to be produced in 2015

Recruitment of individual consultants for City Sanitation Strategies and Policy partly completed.

Additional recruitment due in 2014 (Q2) for Option Studies (National Firm) and individual consultants for policy and city sanitation strategies.

Geographical Location Viet Nam
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The Project Team consulted with various Ministries at the central government levels and with some local governments agencies in charge of urban environment. The Viet Nam Water and Sanitation Sector Assessment Strategy and Roadmap (Manila, June 2010) provided the background for external assistance to the urban environment sector, the donors and government strategy.
During Project Implementation The Project Team is now working with the Ministry of Construction, counterpart Agency for this TA for the Inception phase (Quarter IV 2012)
Business Opportunities
Consulting Services to be determined
Responsible ADB Officer Hubert M. Jenny
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Urban Development and Water Division, SERD
Executing Agencies
Ministry of ConstructionManagement Board of Water
Supply & Sanitation Development Project
37 Le Dai Hanh, Ha Noi, Viet Nam
Timetable
Concept Clearance 25 Oct 2010
Fact Finding 20 Sep 2010 to 20 Sep 2010
MRM -
Approval 12 Oct 2011
Last Review Mission -
PDS Creation Date 30 Oct 2010
Last PDS Update 24 Sep 2014

TA 7885-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Oct 2011 12 Apr 2012 12 Apr 2012 31 Dec 2013 31 Dec 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 2,000,000.00 0.00 0.00 0.00 0.00 2,000,000.00 12 Oct 2011 1,130,987.49

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