Project Name GMS Kunming-Haiphong Transport Corridor - Noi Bai-Lao Cai Highway Project
Project Number 33307-023
Country / Economy Viet Nam
Regional
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2222-VIE: GMS Kunming-Haiphong Transport Corridor Project - Noi Bai-Lao Cai Expressway Technical Assistance Project
Asian Development Fund US$ 6.00 million
Loan 2391-VIE: Greater Mekong Subregion: Kunming-Hai Phong Transport Corridor-Noi Bai-Lao Cai Highway Project (Viet Nam)
Ordinary capital resources US$ 896.00 million
Loan 2392-VIE: Greater Mekong Subregion: Kunming-Hai Phong Transport Corridor-Noi Bai-Lao Cai Highway Project (Viet Nam)
Asian Development Fund US$ 200.00 million
Loan 3207-VIE: GMS Kunming-Haiphong Transport Corridor Noi Bai-Lao Cai Highway (Additional Financing)
Ordinary capital resources US$ 117.00 million
Loan 3208-VIE: GMS Kunming-Haiphong Transport Corridor Noi Bai-Lao Cai Highway (Additional Financing)
Asian Development Fund US$ 16.09 million
Loan 3209-VIE: Greater Mekong Subregion Kunming"Hai Phong Transport CorridorNoi Bai"Lao Cai Highway Project (Additional Financing)
Asian Development Fund US$ 13.91 million
Strategic Agendas Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Transport / Road transport (non-urban)

Gender Some gender elements
Description The Project is designed to provide (i) a 244-kilometer grade-separated and access-controlled highway, including 10 interchanges with toll booths and five service areas, starting at Noi Bai in a suburb of Hanoi and ending at Lao Cai, on the border with the People's Republic of China (PRC) in northwest Viet Nam; (ii) electric, communications, and tolling systems and associated facilities, and the Vietnam Expressway Corporation's (VEC's) highway operation and maintenance (O&M) equipment and vehicles; and (iii) capacity building for VEC on management of project implementation, corporate financing management, O&M of highways, and safeguard planning and implementation.
Project Rationale and Linkage to Country/Regional Strategy

The Noi Bai-Lao Cai Highway is an integral section of the eastern link of the Greater Mekong Subregion (GMS) Northern Economic Corridor, connecting Kunming in Yunnan province of the PRC with Hanoi, and Hai Phong and Cai Lan ports in Viet Nam. Most of the existing national road between Hanoi and Lao Cai is narrow, with a large number of bridges with limited capacity, and there is substantial ribbon development on most of its length. By upgrading the Noi Bai-Lao Cai section, the Kunming-Hai Phong Transport Corridor will be completed.

Poverty in the project area is largely a result of inadequate access, caused by poor local road infrastructure. People living below the poverty line are suffering from poor accessibility to economic opportunities, education, and health services. The highway will decrease the cost of travel, which will encourage economic activities in the project area, provide employment opportunities for the local population, and improve access to social services.

Impact

Sustainable economic growth and strengthened connectivity with People's Republic of China (PRC) in the project area and along the KunmingHai Phong Transport Corridor

Project Outcome
Description of Outcome

International and local traffic use an efficient, safe, and reliable express route from Noi Bai to Lao Cai on the border with PRC

Progress Toward Outcome The entire highway section was opened to public in S eptember 2014.
Implementation Progress
Description of Project Outputs

The 244 km of Noi Bai-Lao Cai Highway, with 10 grade-separated interchanges and five service areas, is constructed to a high standard and operational

Current project Institutional and financial management capacity of VEC strengthened

Program on HIV/AIDS, human and illicit drug trafficking minimizes local population exposure to these issues

Status of Implementation Progress (Outputs, Activities, and Issues) The civil works have been completed.
Geographical Location Viet Nam - Huyen Soc Son, Lao Cai, Noi Bai, Thanh Pho Lao Cai
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples A
Summary of Environmental and Social Aspects
Environmental Aspects

The alignment of the highway avoids environmentally sensitive areas. The project area is mainly agricultural and dominated by rice paddies. People have settled and cultivated the area for centuries. The EIA identified no habitats of vulnerable, threatened, or endangered flora or fauna within the Project's impact areas. However, the EIA identified several major environmental impacts during the construction period, and proposed mitigation measures and an EMP. Sand extraction in rivers for road embankment works was done at licensed areas, with care taken to minimize environmental impacts. Surplus excavated material generated in the mountainous and hilly sections was used for embankment of the additional two lanes in the Yen Bai-Lao Cai section of the highway. The total volumes of excavation and embankment for the Project were balanced as much as possible to minimize the need for soil disposal. The contractors were required to prepare site-specific EMPs to manage environmental impacts at construction camps and construction sites based on the EMP of the EIA. Public consultations were carried out in the local language in project-affected areas. The project design has taken local concerns into consideration and provides several underpasses and overpasses to maintain the functions of existing local roads and irrigation systems during the highways construction and operation. Noise barriers were installed in environmentally sensitive areas based on noise simulation results.

The contractors generally followed the EMPs during the constructions.

Involuntary Resettlement The right-of-way of the highway is a minimum of 50 meters in accordance with the highway standards in Viet Nam. It is estimated that about 2,000 hectares of land needs to be acquired for the highway construction. Productive land, such as rice paddies, fish ponds, vegetable gardens, orchards, and woodland, accounts for 1,800 hectares (90%) of all affected land. Nonproductive land such as residential land, nonagricultural land, and other land (waterways, footpaths, and graveyards) account for 200 hectares (10%). A total of 5,458 households (approximately 24,560 persons based on an average household size of 4.5) are adversely affected by losses of assets and sources of livelihood. A total of 3,998 households lose more than 10% of their productive land, and the majority of these lose all of their productive land. The socioeconomic surveys also identified 1,083 households that were headed by women; 83 households that were headed by disabled persons; 1,210 households living below the officially set poverty threshold; and 1,586 households that were headed by persons within the retirement age bracket of the government.
Indigenous Peoples The main ethnic minority groups in the project area are Tay, Thai, Phu La, Nung, Giay, Moung, and Hamong, and together they represent 18% of the total population in the project area. Ethnic minority groups such as Tay, Thai, and Moung who inhabit lower mountain areas have long traditions of wet-rice cultivation. They also traditionally interact more with the majority Kinh. Although the ethnic minority groups retain their traditional culture, religion and social organization, they have adopted mainstream Vietnamese language and agricultural practices. Of the 5,458 project-affected households, 136 (approximately 2.4%) are from ethnic minority groups. The socioeconomic and inventory-of-losses surveys indicated that impacts on the ethnic minority groups and the main ethnic group are the same. However, to ensure that ethnic minority groups are not marginalized during the process of implementation of resettlement activities, an ethnic minority development plan is incorporated in the resettlement plan.
Stakeholder Communication, Participation, and Consultation
During Project Design During the feasibility study of the Project, focus group discussions, surveys, and consultations were held with the people in the project area, affected households, different ethnic minority groups, local government officials at the commune and district levels, traditional leaders, mass organizations, the Vietnam Expressway Corporation and various government agencies.
During Project Implementation The participation strategy included in the various activities of the Project includes: formation of local resettlement committees, participation of project-affected households in the detailed measurement survey, and designing a livelihood program targeted at women in the project districts. Separate consultation on resettlement issues is undertaken with affected minority groups, women-headed households, and poor households. Capacity-building training of resettlement committees and project-affected households on resettlement issues facilitate effective participation of the relevant stakeholders in planning and implementing the resettlement program. The road safety awareness campaign, HIV, illicit drugs, and human trafficking prevention program have community-based components to increase community participation.
Business Opportunities
Consulting Services The objectives of the consulting services are to (i) supervise the civil works for the highway construction; (ii) assist VEC in undertaking an environmental impact assessment (EIA); land acquisition, resettlement, income restoration, and social development activities; (iii) assist VEC with undertaking procurement of equipment for the highway O&M; and (iv) develop the skills of VEC staff on project implementation management, environmental management, land acquisition and resettlement, social development assistance, corporate financing management, and highway O&M. The international consulting firm was selected using quality- and cost-based selection (QCBS) and full technical proposal procedure in accordance with Guidelines on Use of Consultants (2007, as amended from time to time).
Procurement The civil works to construct all the highway structures, including road embankments and pavements, bridges, tunnels, underpasses, drainages, slope protection works, environmental mitigation works, interchanges and toll booths, service areas, guide signs, variable message signs, and O&M offices, are be divided into eight packages to be procured under international competitive bidding (ICB) procedures. The typical length of each package is about 30 km, with each one costing $60 million$120 million. Electric, communications, and tolling system for the highway and associated facilities, which cost an estimated $23 million, and vehicles for the highway O&M, which cost an estimated $2 million, are procured under ICB.
Responsible ADB Officer Islam, Mohammad Nazrul
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Ministry of Transport
Timetable
Concept Clearance 07 Mar 2004
Fact Finding 22 Aug 2005 to 02 Sep 2005
MRM 29 Sep 2005
Approval 19 Dec 2005
Last Review Mission -
PDS Creation Date 05 Apr 2006
Last PDS Update 27 Sep 2019

Loan 2222-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Dec 2005 19 Jan 2006 03 Oct 2006 30 Sep 2008 31 Dec 2009 12 May 2010
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 6.00 Cumulative Contract Awards
ADB 6.00 17 Jun 2022 6.21 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 6.21 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 2391-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2007 26 Sep 2008 09 Mar 2009 31 Dec 2012 31 Dec 2017 01 Oct 2019
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 931.00 Cumulative Contract Awards
ADB 896.00 17 Jun 2022 849.27 0.00 100%
Counterpart 35.00 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 849.27 0.00 100%

Loan 2392-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2007 26 Sep 2008 09 Mar 2009 31 Dec 2012 31 Dec 2017 01 Oct 2019
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 320.00 Cumulative Contract Awards
ADB 200.00 17 Jun 2022 192.71 0.00 100%
Counterpart 120.00 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 192.71 0.00 100%

Loan 3207-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2014 04 May 2015 21 Oct 2015 30 Jun 2016 31 Mar 2017 01 Oct 2019
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 117.00 Cumulative Contract Awards
ADB 117.00 17 Jun 2022 25.03 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 25.03 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 3208-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2014 04 May 2015 21 Oct 2015 30 Jun 2016 31 Mar 2017 01 Oct 2019
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 16.09 Cumulative Contract Awards
ADB 16.09 17 Jun 2022 2.88 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 2.88 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 3209-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2014 04 May 2015 21 Oct 2015 30 Jun 2016 31 Mar 2017 01 Oct 2019
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 13.91 Cumulative Contract Awards
ADB 13.91 17 Jun 2022 2.49 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 2.49 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory
 
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