Project Name Provincial Roads Improvement
Project Number 31367-013
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 1888-VIE: Provincial Roads Improvement
Asian Development Fund US$ 70.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description The Project will contribute to poverty reduction and economic growth by improving transport efficiency. The objectives of the Project are to (i) improve the provincial road network on both social and economic grounds, (ii) provide or improve access for poor and disadvantaged groups living in rural communities, (iii) strengthen asset management capacity and maintenance programs of the Provincial Departments of Transport (PDOTs), (iv) continue further institutional strengthening of VRA and improve governance in the road sector, (v) strengthen PDOT capacity to prepare, implement, and monitor resettlement and ethnic minority development plans, and (vi) promote private sector participation in the delivery of road infrastructure and maintenance. The scope of the Project includes (i) a program including an investment plan and policy framework to improve about 1,600 km of provincial roads in the 18 northern provinces, (ii) assistance to Project Management Unit No. 5 (PMU-5) and the PDOTs to strengthen their capabilities to prepare and implement improvements to and maintenance of provincial roads, (iii) agreement on an action plan to implement a road fund scheme, (iv) assistance to introduce new regulation and further institutional strengthening of VRA, (v) assistance to implement and monitor resettlement and ethnic minority development plans, and (vi) supervision of civil works, preparation of additional subprojects, and capacity building of the PDOTs.
Project Rationale and Linkage to Country/Regional Strategy Effcient road transport and, in particular improved access is essential for poverty reduction and economic development in Vietnam. Past efforts in the road subsector have mainly been directed toward upgrading the national highway system, while also improving district and commune roads. One missing part in the network development strategy has been improvement of provincial roads, which provide access to the provincial capitals, the national highway network, and the rural population through the district and commune roads. Improving the provincial roads will ensure effective transport and comunication between the rural population connected by commune and provincial roads with market and distribution centers and the national highway network. Another priority is continued reform and institutional strengthening of the Vietnam Road Administration (VRA) to become a modern and efficient road management agency. The adopted sector loan modality will support sustainable development of provincial roads and allow flexibility in selecting prescreened subprojects forming part of the provincial road sector development plan.

Project Outcome

Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location 18 nothern provinces: Bac Giang, Bac kan, Dien Bien,Ha Giang,Ha Nam,Ha Tay,Hoa Binh,Lai Chau,Lang Son,Lao Cai, Phu Tho, Quang Ninh, Son La, Thai Nguyen,Thanh Hoa,Tuyen Quang,Vinh Phuc, Yen Bai,

Safeguard Categories

Environment B
Involuntary Resettlement
Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Business Opportunities

Consulting Services An international consulting firm will be engaged to provide about 160 person-months of international and 2,000 person-months of domestic consultants to supervise construction, economic evaluation, environmental impact and monitoring, resettlement supervision and monitoring, and a substantial training component for Government officials and domestic consultant personnel involved with the Project. The consultant will also be responsible for engaging and overseeing the work of the PDOT's consulting firm in preparing sub-projects for each proposed provincial road. This involves conducting surveys and preparation of engineering designs, economic evaluation and resettlement plans, as needed.
Procurement Civil works will be implemented through a number of small contracts, each valued between $200,000 and $1,000,000. There will be about 8-20 of these contracts per province, for a total of about 200 contracts. Contracts will be procured using local competitive bidding procedures.

Responsible Staff

Responsible ADB Officer Thang Le
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
PMU-5, Ministry of Transport
Mr. Luu Van Dzung
[email protected]
278 Ton Duc Thang Street, Hanoi, Vietnam


Concept Clearance 08 Mar 1999
Fact Finding 14 May 2001 to 01 Jun 2001
MRM 20 Sep 2001
Approval 18 Dec 2001
Last Review Mission -
PDS Creation Date 06 Dec 2006
Last PDS Update 21 Oct 2009

LoanĀ 1888-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2001 02 Apr 2002 03 Sep 2002 31 Dec 2006 30 Jun 2009 08 Jul 2010
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 70.00 Cumulative Contract Awards
ADB 70.00 18 Dec 2001 73.75 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 18 Dec 2001 73.75 0.00 100%

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