Project Name Basic Infrastructure for Inclusive Growth in the North Central Provinces Sector Project
Project Number 49026-003
Country / Economy Viet Nam
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3634-VIE: Basic Infrastructure for Inclusive Growth Project in the North Central Provinces
Ordinary capital resources US$ 52.00 million
Loan 3635-VIE: Basic Infrastructure for Inclusive Growth Project in the North Central Provinces
Concessional ordinary capital resources lending US$ 97.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Irrigation - Rural flood protection - Rural water supply services

Transport / Road transport (non-urban)

Gender Effective gender mainstreaming

- The project impact will accelerate socio-economic development of the four north central provinces (NCPs) in accordance with the Provincial Socio-economic Development Plans through 2020, with a vision to 2030 (PSEDP) and the Master Plan on Socio-economic Development of Viet Nam's Central Northern and Coastal Region through to 2020 (Master Plan). The project outcome will be service delivery in the four NCPs of Viet Nam of Ha Tinh, Nghe An, Quang Binh, Quang Tri improved.

- The proposed project will (i) rehabilitate and upgrade provincial road and district roads in the NCPs; (ii) support productive and business infrastructure including water supply networks, sea and river protection and drainage works with association river transport infrastructure, and supporting flood and irrigation command areas; and (iii) establish decentralized public asset management processes and established for road, water supply and irrigation infrastructure.

- The project will have an Asian Development Bank (ADB) sector modality and implement in total approximately 32 subprojects for outputs 1 and 2. Feasibility Studies (FS) have been prepared for the four representative subprojects demonstrating subproject viability, and consequently overall project feasibility. Criteria for the eligibility, election, prioritization and preparation of additional subprojects have been agreed. A long list of additional subprojects has been identified, and the NCPs and ADB will carry out field screening to agree upon their inclusion in the project.

Project Rationale and Linkage to Country/Regional Strategy

The key constraints contributing to FNCP poverty and low incomes that the Project will address include: (i) High transport costs due to weak inter-district linkages, with low quality road conditions leading to extended travel times. While the national arterials including the south-north axis and EWEC, are mostly in good condition, rural connectivity is underdeveloped; (ii) Inadequate infrastructure quality and coverage hampers business investment, competitiveness and increases exposure to natural disasters and climate change impacts, resulting in livelihood vulnerabilities, high costs of repair, reconstruction and adaptation. In particular the lack of clean water and poorly developed services for many rural coastal communities is causing illness and reduced incomes; (iii) Weak asset management. The FNCP have developed infrastructure assets in a piecemeal fashion, without systems for preserving the investments already made and to inform future investment decision makers, resulting in a costly cycle of construction, deterioration and reconstruction.

The project is aligned with important government policies and strategies as expressed in: (i) 2016 Socio-Economic Development Plan 20162020, which aims to expand the domestic market, promote export, and sustain trading surpluses; (ii) master plan on socio-economic development of Central Vietnam's northern and coastal region through to 2020, giving priority to regional connectivity, the benefits of improved access to economic opportunities and services by increasingly multi-sector investments; (iii) 2009 Government's Transport Strategy, which emphasizes corridor development, and provincial and rural connectivity; (iv) 2011 National Target Programme on New Rural Development (NRD) with specific targets for rural development including rural access, water resources, and rural value chains; (v) commitment to the sustainable development goals (SDGs).

The Project supports the three pillars of ADB's Viet Nam country partnership strategy 20162020: (i) promotion of job creation and competitiveness, through assistance to improve physical connectivity, and support commerce and employment creation, enhance the business environment, and increase productivity, (ii) enhanced and inclusive infrastructure and service delivery by, diversifying economic opportunities, broadening access to essential social services, creating livelihood opportunities for rural people in the FNCP. Particular emphasis will be placed on working with provincial governments to upgrade and maintain rural productive assets, such as roads and rural water supply, and (iii) improved environmental sustainability and climate change response, by including climate-proofing measures into infrastructure investments.

Value added by ADB assistance. The ADB strongly supports the GMS Strategic Framework 2012-2022 which prioritizes multi-sector investments to foster regional and local economic development that require stronger cross-sector linkages and integration particularly with special economic zones and border areas. The project will contribute to the ADB's goals for regional integration through GMS economic cooperation by promoting closer FNCP development in cross-border areas, and is consistent with the GMS Transport and Trade Facilitation Action Plan. Greater synergies will be achieved with current ADB technical assistance projects capacity building initiatives for road safety, agriculture competitiveness and public sector management, as well as support from development partners. ADB is supporting the government's focus on decentralized managed, area-wide, multi-sector approach within which the FNCP is a regional cluster with shared development objectives.


Socioeconomic development of Ha Tinh, Nghe An, Quang Binh, and Quang Tri provinces accelerated

Project Outcome
Description of Outcome

Service delivery in north central provinces (NCPs) improved

Progress Toward Outcome Counterpart fund shortage and recent government policy changes may result in untimely project completion and delayed outcome achievement.
Implementation Progress
Description of Project Outputs

Transport infrastructure improved

Productive infrastructure for business development improved

Decentralized public asset management processes established

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

Output 1:Procurement for the first 4 prior review civil works packages, and their associated construction supervision consulting services are on going. Construction to start in Q2 2020.

Output 2: Preparation of bidding documents, updated resettlement plan and updated IEEs, where necessary, are on-going.

Output 3:Options for sensible public asset management being explored.

Geographical Location Tinh Ha Tinh, Tinh Nghe An, Tinh Quang Binh, Tinh Quang Tri
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The NCP PPCs and ADB have agreed upon an environmental assessment and review framework. The road works are limited to upgrades within the existing or newly established right-of-way and environmental impacts will be minor and temporary. They will not infringe on protected or environmentally sensitive areas and will require only simple mitigation measures such as proper management of construction camps or storage of building materials. Each initial environmental examination for the four representative subprojects includes an environmental management plan with appropriate mitigation measures.
Involuntary Resettlement The NCP PPCs and ADB have agreed upon a combined resettlement and ethnic minority development framework, through which resettlement and ethnic minorities development plans were prepared for all representative subprojects and publicly disclosed. The plans are supported by public consultation and information disclosure. The only impacts will be minor land acquisition and compensation for roadside trees, crops, or small structures within the right-of-way for which compensation, allowances, operation and administration, surveys, monitoring, and reporting will be financed from the government's counterpart funds. The impacts will be monitored, evaluated, and reported semiannually to ADB by the PPCs.
Indigenous Peoples Impacts on indigenous peoples, referred to as ethnic minorities in Viet Nam, are overwhelmingly positive since the subprojects aim for the economic and social improvement of the total population. The project will not cause physical displacement from traditional or customary lands, nor will it negatively impact the identity, culture, or customary livelihood systems of the ethnic minorities. The resettlement and ethnic minority development framework will be used to ensure the inclusion of ethnic minorities into project benefits. The resettlement and ethnic minorities development plans include mitigation measures to address impacts, institutional capacity development programs, and a grievance redress mechanism.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Construction supervision and auditing services are financed from loan proceeds.
Procurement There will be around 25-30 civil works contract which will be procured using NCB method. Procurement started from Q3 2019 and expected to complete in 2022.
Responsible ADB Officer khuc, huong thi lan
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission (VRM)
Executing Agencies
Provincial People's Committee of Ha Tinh Province
Provincial People's Committee of Nghe An Province
Provincial People's Committee of Quang Binh Province
Provincial People's Committee of Quang Tri Province
Concept Clearance 29 Apr 2016
Fact Finding 23 Mar 2017 to 08 Apr 2017
MRM 23 Jun 2017
Approval 15 Dec 2017
Last Review Mission -
Last PDS Update 06 Feb 2020

LoanĀ 3634-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2017 23 Jul 2018 25 Oct 2018 30 Sep 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 106.52 Cumulative Contract Awards
ADB 52.00 25 Jul 2023 15.10 0.00 29%
Counterpart 54.52 Cumulative Disbursements
Cofinancing 0.00 25 Jul 2023 3.82 0.00 7%

LoanĀ 3635-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2017 23 Jul 2018 25 Oct 2018 30 Sep 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 97.00 Cumulative Contract Awards
ADB 97.00 25 Jul 2023 87.57 0.00 90%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 25 Jul 2023 67.04 0.00 69%
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