Project Name Sustainable Urban Transport for Ho Chi Minh Mass Rapid Transit Line 2
Project Number 45200-002
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3113-VIE: Sustainable Urban Transport for Ho Chi Minh City Mass Rapid Transit Line 2
concessional ordinary capital resources lending / Asian Development Fund US$ 10.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Transport - Urban public transport

Gender Equity and Mainstreaming Effective gender mainstreaming
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome Consultant selection is on-going.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

The project outputs are not yet due.

The project has faced 1.5 year delay and further expected delay due to its dependence on the progress of the HCMC Urban MRT Line 2 Project (Loans 2731/2956), which is facing substantial delay.

This delay has caused:

(i) subsequent delay in recruitment of consulting services. Currently, only CS5 (external financial audit) consulting service package is under recruitment;

(ii) slow project financial progress. All the project consulting service packages are under preparation, while the preparation of civil works and equipment packages has not been started yet;

(iii) a need for extending a project completion date from 30 June 2020 to 31 December 2024 to align with the Urban MRT Line 2 Project.

The implementing agency, UTMD1, has initiated formal project adjustments and loan closing date extension, which are expected to be approved by the third quarter 2017. The project is expected to be back on track by then due to optimization of project implementation schedule.

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects

The project is assessed as category B for environment.

The draft initial environmental examination, which has been prepared based on ADB's Safeguard Policy Statement, has been reviewed by ADB and is being revised. The approved initial environmental examination will be disclosed on the ADB website upon receipt from the HCMC People's Committee.

No natural ecosystems exist in the project area, which is heavily populated. Land use is predominantly commercial or residential. The project will not involve major civil works and is not likely to result to significant adverse environmental impacts during construction and operation. Public consultations with affected people were conducted during preparation of the initial environmental examination, in compliance with ADB's information disclosure and consultation requirements. The implementing agency will ensure that the environmental management plan is included in all bid documents.

A grievance redress mechanism will be established prior to commencement of site works. The construction supervision consultant will conduct environmental management training for implementing agency in monitoring and reporting and help monitor the environmental performance of contractors.

Involuntary Resettlement

The project is assessed as category B for involuntary resettlement.

The 1.6 hectares of land acquisition required will affect only government-owned land. An estimated 63 roadside stalls and small shops with 77 employees near three MRT Line 2 stations will be affected, as well as two gas stations owned by the government and employing 23 people.

A resettlement plan has been prepared that is consistent with ADB's Safeguard Policy Statement and relevant legislation and policies in Viet Nam. The draft resettlement plan was posted on the ADB website on 1 August 2013 and will be updated following detailed design. Affected businesses will be provided with compensation at replacement cost and transitional and relocation assistance. One workshop and nine consultation meetings in which 283 affected business owners and employees participated were conducted in December 2012, January 2013, March 2013 and July 2013. The meetings provided an overview of the project and outlined key elements of the resettlement plan, such as anticipated impacts, mitigation measures, entitlements, consultation, and the grievance redress mechanism. In July 2013, key information from the draft resettlement plan was disclosed to all 65 affected business establishments. The agreed resettlement plan will be made available in the district offices and on ADB's website. All social monitoring reports will be disclosed.

Indigenous Peoples

The project is assessed as category C for indigenous peoples' safeguards.

Due diligence has confirmed that there are no ethnic minority communities in the project area

Stakeholder Communication, Participation, and Consultation
During Project Design

Women, students, children, and older people are more inclined to use public transport than other social groups and are expected to benefit the most from the improved transportation services and lower costs.

The Women's Union has been identified as the focal point to guide the development of gender-sensitive measures.

Through government community awareness program under the MRT Line 2 project, extensive public communications about this project will be made available in a timely manner to ensure that all stakeholders and interested civil society organizations can effectively participate in the consultations and meetings to be conducted.

During Project Implementation Not yet

Business Opportunities

Consulting Services

International and local consulting services to support design, supervision and project management, as well as to undertake bus management and urban transport policy studies

Five consulting service packages;

CS01: Survey, Design and Supervision

CS02: Transport and Traffic management modeling

CS03: Development of a Bus Information System (BIS)/Bus Management System (BMS) Centre

CS04: Urban transport sector development and project management support

CS05: External Financial Audit


Civil works and equipment related to public transport facilities and services

Four civil works and one equipment packages:

CP01: Infrastructure and parking

CP02: Bus infrastructure, entrance and landscaping

CP03: Traffic Management

CP04: Subway and footbridge

EQ01: Accessibility improvement and public transport measures

Responsible Staff

Responsible ADB Officer Mizusawa, Daisuke
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Ho Chi Minh City People's Committee
[email protected]
86 Le Thanh Ton Street, Ben Nghe Ward,
District 1, Ho Chi Minh City
Viet Nam


Concept Clearance -
Fact Finding -
Approval -
Last Review Mission -
Last PDS Update 31 Mar 2017

LoanĀ 3113-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Feb 2014 18 Jul 2014 14 Apr 2015 30 Jun 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 16.05 Cumulative Contract Awards
ADB 10.00 20 Feb 2014 0.00 0.00 0%
Counterpart 6.05 Cumulative Disbursements
Cofinancing 0.00 20 Feb 2014 0.00 0.00 0%

LoanĀ 8279-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Feb 2014 18 Jul 2014 14 Apr 2015 30 Jun 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.00 Cumulative Contract Awards
ADB 0.00 20 Feb 2014 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 20 Feb 2014 0.00 0.25 1%

This page was generated from on 22 July 2017