Project Name Third Provincial Towns Water Supply and Sanitation
Project Number 28315-013
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 1880-VIE: Third Provincial Towns Water Supply and Sanitation
concessional ordinary capital resources lending / Asian Development Fund US$ 60.00 million
Loan: Third Provincial Towns Water Supply and Sanitation
Agence Francaise de Developpement US$ 11.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Water and other urban infrastructure and services - Urban flood protection - Urban policy, institutional and capacity development - Urban sanitation - Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The Project aims to improve water supply and environmental sanitation conditions in the Project towns through integrating critically-needed infrastructure developments with community awareness and participation, improved financial management and cost recovery by WSCs, and local regulations on sanitation, wastewater management, and water source protection. The scope of the Project includes the design, development and delivery of (i) community environmental sanitation improvement program in each Project town; (ii) water supply systems to provide better quality water and greater coverage in the towns and adjoining districts, (iii) drainage and sanitation improvements; and (iv) project implementation assistance and capacity building.
Project Rationale and Linkage to Country/Regional Strategy

The water supply and sanitation systems in the project towns have been deteriorating because of lack of maintenance and investment. The inadequate water supply and sanitation systems in these towns have adversely affected the quality of life and health conditions of the people living in them. The five provincial towns are selected from among seven remaining provincial towns that have not received any external assistance in water supply and sanitation. Two district towns from two relatively poor provinces are included to balance the support to economic growth and the need o reach the poor. Access to safe water supply among these towns ranges from 18-55 percent among the provincial towns, and from 4-9 percent among the district towns. Similarly, septic tank coverage among the provincial towns ranges from 44-86 percent, and that among the district towns from 6-20 percent. Lack of access to safe water supply and sanitation facilities, combined with poor drainage systems, caused great health risks to the residents, especially the poor, who often live in flood-prone areas.

The Government's development framework and priorities are reflected in a series of development plans, policy statements, and ministerial decisions. The development targets and policies for urban water supply and sanitation are reflected in he Government's Orientation Plan for Development of Urban Water Supply to 2000, and the Draft Orientation Plan for Urban Drainage Development to 2020. For water supply, the targets by 2010 are (i) 100% coverage and 180 lpcd in Class 1 cities; (ii) 95% coverage and 150 lpcd in Class 2 cities; (iii) 90% coverage and 120 lpcd in Class 3, 4, and 5 towns; and (iv) 80% coverage and 80-100 lpcd in district towns and clusters. The targets for drainage, sewerage, and urban environmental sanitation are (i) improve and complete urban drainage and sewerage systems to ensure a minimum of 80-90 % coverage by 2020; (ii) require enterprises to have on-site treatment for toxic liquid waste; (iii) eliminate pit latrines in urban areas by 2005; (iv) provide waste collection systems that treat solid and liquid wastes; and (v) gradually rehabilitate and clean the canal systems. Complementing its water sector policies, the Government issued a strategy for the development of urban drainage in November 1998, which aims at reducing subsidies to the sector in the short term, and establishing financial mechanisms to ensure sustainability of urban drainage enterprises in the long term.

Impact The projected impact of the Third Provincial Towns Water Supply and Sanitation Project was to enhance human development and reduce poverty. This was to be achieved through sustainable improvement of the water supply and sanitation conditions in the project towns, which would lead to (i) improved health conditions, (ii) higher rate of school attendance, and (iii) increased time for productivity, particularly for women, who are normally responsible for the provision of water for the family

Project Outcome

Description of Outcome

The project's expected outcomes were as follows:

(i)_improved water supply and sanitation in the project towns

(ii)_participation of local communities in local sanitation improvement

(iii)_improved financial sustainability of the WSCs, and

(iv)_introduction of local regulations on sanitation and environmental improvement.

Progress Toward Outcome
Implementation Progress
Description of Project Outputs Increased coverage.
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location

Safeguard Categories

Environment B
Involuntary Resettlement B
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Participatory methods, such as workshops, rapid assessment, focus group discussions, and surveys, have been employed throughout the feasibility study to ensure that the needs and demands of the weaker social groups such as women, ethnic minorities, and the poor, will be taken into consideration.
During Project Implementation During Project implementation, WSCs will be trained in community consultation techniques, analysis of customer feedback, and other areas to improve participation. The public health awareness programs, the community environmental sanitation improvement programs, and the sanitation credit schemes will all use participatory approaches.

Business Opportunities

Consulting Services About 1,543 person-months of consulting services (215 international and 1,328 domestic) will be required from international consulting firms in association with domestic consultants. There will be two consulting services contracts: project orientation assistance and project implementation assistance. The consultants will comprise experts in the areas of project management, water supply engineering and design, sanitation engineering and design, unaccounted-for-water improvement, construction management, community development, sanitation credit scheme, training and capacity building, and technical support to the Provincial Project Management Units and Project Coordination Unit.
Procurement Civil works and supply contracts valued above $1.0 million and $0.5 million respectively will be procured under international competitive bidding procedures. This will include civil works contracts for the water supply component and a supply contract for UFW equipment. Minor civil works and supply contracts value at or below the above thresholds will be procured following local competitive bidding procedures in accordance with Government's regulations acceptable to ADB.

Responsible Staff

Responsible ADB Officer van Klaveren, Paulus B.
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Urban Development and Water Division, SERD
Executing Agencies
Binh Duong Provincial People's Committee
Nguyen Van Chien
[email protected]
No. 1 Quang Trung Street, Thu Dau Mot Town
Kien Giang Provincial People's Committee
Nguyen Duc Hien
[email protected]
No. 6 Nguyen Cong Tru Street, Rach Gia
Ninh Thuan Provincial People's Committee
Nguyen The Duong
[email protected]
No. 238 Thong Nhat Road, Phan Rang - Thap Cham
Phu Yen Provincial People's Committee
Nguyen Phu
[email protected]
No. 1 Nguyen Truong To Street, Tuy Hoa Town
Tay Ninh Provincial People's Committee
Trinh Thanh Nghiem
[email protected]
C300 Cach Mang Thang Tam Road, Tay Ninh Town


Concept Clearance 08 Mar 1999
Fact Finding 09 Mar 1999 to 22 Mar 1999
MRM 04 May 2001
Approval 13 Dec 2001
Last Review Mission -
PDS Creation Date 28 Nov 2006
Last PDS Update 16 Dec 2011

LoanĀ 1880-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2001 02 Apr 2002 17 Sep 2002 30 Jun 2008 30 Jun 2010 20 Jul 2011
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 94.00 Cumulative Contract Awards
ADB 60.00 13 Dec 2001 64.97 0.00 98%
Counterpart 23.00 Cumulative Disbursements
Cofinancing 11.00 13 Dec 2001 66.23 0.00 100%

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