Viet Nam: Central Region Water Resources

Sovereign Project | 30292-023

The project will develop the water resources and promote improved management practices to increase and protect incomes and livelihoods of people in the poorest provinces of the central region. The components are: (i) irrigation and development; (ii) institutional support for system management and agricultural extension.

Project Results

  • 43,450 hectares of land improved through irrigation, drainage and/or flood management

The results data reported above are limited to ADB's core sectors, as defined under Strategy 2020 and tracked through indicators in the ADB Results Framework. For definitions of results indicators, please see the ADB Results Framework Indicators Definition.

Project Details

  • Project Officer
    Ho, Phong Le
    Southeast Asia Department
    Request for information
  • Country/Economy
    Viet Nam
  • Modality
    • Loan
  • Sector
    • Agriculture, natural resources and rural development
Project Name Central Region Water Resources
Project Number 30292-023
Country / Economy Viet Nam
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2223-VIE: Central Region Water Resources
Asian Development Fund US$ 74.30 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Agriculture, natural resources and rural development / Water-based natural resources management

Gender Equity and Mainstreaming Gender equity
Description The project will develop the water resources and promote improved management practices to increase and protect incomes and livelihoods of people in the poorest provinces of the central region. The components are: (i) irrigation and development; (ii) institutional support for system management and agricultural extension.
Project Rationale and Linkage to Country/Regional Strategy

Continued, deep, and lasting poverty reduction in the central coastal region depends on improving returns from agriculture, a sector whose performance is currently held back by physical and institutional constraints. The project is premised on the assumption that improved performance of the region's irrigation schemes can best be achieved by introducing service-oriented management systems that are financially sound; capable of meeting agreed service targets; enabled and structured to prepare work plans, budgets, user fees, and staff plans; and responsive to the needs of the client base. The project recognizes that the participation of water user groups in the planning, design, implementation, and operation and maintenance of subprojects is not only indispensable for sustainable operation, but is also a cost efficient means of helping service providers meet their goals.

About one third of the population of Viet Nam lives below the poverty line, 85% of them in rural areas. As much as 70% of the total labor force depends on agriculture. The central region of Viet Nam has a particularly high incidence of poverty: with 29% of the national population, it hosts 38% of the nation's poor. The central region coastal area is a narrow plain, over 1,000 kilometers (km) long, connecting the Red River basin in the north with the Mekong River delta in the south. It is generally less than 100 km wide, and is transected by many small-to medium-sized rivers flowing eastward from the highlands to the South China Sea. The topography and monsoon climate cause extreme seasonal variability of river flows and frequent natural disasters on the coast. Low river flows during the dry season cause saline intrusion and shortages of water for household and agricultural use. In the wet season, floods and ocean storms (typhoons) inundate large areas and cause significant losses. These natural hazards are constraints on the region?s rural incomes and economic growth. To help reduce income disparities, the Government is placing increased emphasis on rural development, especially on the central coast where agricultural livelihoods are particularly susceptible to natural disaster.

ADB's country strategy and program, as well as its strategy updates, emphasize poverty reduction through employment-generating economic growth, which is targeted at reducing social and regional imbalances. The CSP focuses a large share of ADB's assistance on the central region, and also stresses development and expansion of rural infrastructure. Investment in the water resources sector seeks to combine rural development with improved river basin and natural disaster management. ADB supported national coordination of integrated water resource management (IWRM) by strengthening the National Water Resources Council, under subproject 1 of TA 3528. ADB also helped build capacity of river basin organizations in the Dong Nai and Red River basins. Other funding agencies are supporting IWRM in the central region, including the World Bank, Danish International Development Assistance (Danida), Japan International Cooperation Agency (JICA), and Japan Bank for International Reconstruction (JBIC).


Poverty reduced in Binh

Dinh, Quang Binh,

Quang Ngai, Quang Tri,

Thanh Hoa, and Thua

Thien Hue provinces of

central Viet Nam

Project Outcome
Description of Outcome Increased agricultural production in the selected irrigation subprojects.
Progress Toward Outcome

Area commanded and served in adequate and timely manner was 84% of potential area.

Maintenance performed on 93% of commanded area.

Onfarm water fee collected by WUOs achieved 100% of target.

Subsidies provided by the Government increased 62.9% comparing with that in 2009 as results of the increased serviced area.

Implementation Progress
Description of Project Outputs

1. Irrigation management systems improved in the selected subprojects

2. Irrigation infrastructure improved in the selected subprojects

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

06 IMCs of 06 provinces have been successfully restructured as one-member limited liability irrigation management companies, and operated under Enterprise Law (No. 60/2005/QH11).

O&M for structures handed over to IMCs/IMEs were fully implemented.

The Project has assisted to establish 136 Newly established/ strengthened WUGs and they provided irrigation services for 79% of commanded area in overall, except Nam Thach Han Subproject, where WUGs served only 43% of commanded area.

The Project has strengthened 117 WUGs and newly established 19 WUGs/WUAs in subproject area.

Onfarm water fees collected by WUGs achieved 100 % of the agreed water fee.

Annual business and O&M plans of IMCs were prepared and approved.

Project implemented according to agreed schedules. Project completed on 30 June 2012.

The Project has organized 360 trainings locally and internationally on different topics, with a total of 15,527 participants with a rate of women of 42.4%.

Scheme infrastructure capable of delivering water to 93.9% of the total commanded area.

O&M plans were approved annually by DARDs. O&M covered 100% of irrigated area.

Irrigation area of the project was timely and effectively irrigated.

Crop production of Project area increased through increased cropping area, cropping intensity, crop diversification, and aquaculture production.

Project increased reliability of household water supply.

Annual work plans prepared and approved

Civil work contracts were procured under NCB in accordance with ADB's and GOV's guidelines.

Geographical Location Tinh Binh Dinh, Tinh Quang Binh, Tinh Quang Ngai, Tinh Quang Tri, Tinh Thanh Hoa, Tinh Thua Thien-Hue
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples A
Summary of Environmental and Social Aspects
Environmental Aspects

The Project has a considerably positive impact on environment and socio-culture: (i) Community participation improvement in smallsize construction planning; (ii) Increasing income through agricultural productivity increase; (iii) Protecting people from floods; (iv) Fresh water delivery to residential area; (v) Local transportation improvement; (vi) Environmental condition improvement; and (vii) Water free reduction.

Environmental monitoring consultants have conducted 42 EMP monitoring missions during construction of 6 subprojects. Results showed that environmental criteria at subprojects satisfied the requirements. The Project has considerably improved the eco-system at project area (e.g. Hac Hai Lagoon Thuong My Trung subproject). The project's EMP has described fully and clearly potential impacts during construction as well as mitigation solutions for the project. Overall, the Project has no considerably negative environmental impact.

Total number of beneficiaries in Project area is 147,389 households (about 600,000 people) in 86 communes and districts in 6 provinces (Thanh Hoa, Quang Binh, Quang Tri, Thua Thien Hue, Quang Ngai, and Binh Dinh). According to the monitoring report of the consultant doing baseline survey VICA, rice production in 2011 in all subprojects increased, contributing to 20.7% yearly increase in the whole project area, compared with that in the baseline year (2009). This is the result from increase in productivity, area, and the cropping intensity. As a result, income from irrigated land is VND27.8 million/ha, increases by 25.5% in comparison with that in 2009 .

In terms of social perspectives, during implementation, the Project complied with ADB's safeguard and GOV's resettlement policies. The Project has organized community consultations, conducted Detailed Measurement Survey (DMS), inventory making and valuation of affected assets, disclosed information, after completion of detailed designs, and updated 8 RPs which were then approved by ADB, between April 2009 and January 2010.

The Project has affected 13,372 households, in which 27 relocated (0.2% of affected households (AHs)), 386 lost more than 10% of agricultural land (3% of AHs), and 12,959 inconsiderably affected. All 6 subprojects have completed compensation for AHs. Total compensation from provincial budget is VND106,239 million, equivalent to 5% total investment and 26% counterpart fund from provinces.

Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The project will require a total of 1,075 person-months of which 859 person-months will be provided by domestic consultants and 216 person-months by international consultants. The consultants, NGOs, and local institutions will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for the selection and engagement of domestic consultants. The quality and cost-based selection method will be used. A team of international and domestic consultants will be attached to the CPMU in MARD, and other teams will be based in each of the project provinces as part of the PMUA. Domestic firms will be recruited to assist DARD with subproject detailed design and construction supervision.

Civil works, goods, and related services will be procured in accordance with ADB's Guidelines for Procurement. Civil works contracts estimated to cost more than $2 million equivalent will be procured through international competitive bidding among pre-qualified firms with proven technical competence acceptable to ADB. Civil works contracts estimated to cost $2 million or less will be procured through local competitive bidding procedures. State-owned enterprises will be eligible to bid for contracts if they are financially autonomous, independently managed, and operate on the basis of commercial practice.

Equipment to be procured under the Project includes vehicles, motorcycles, computers, software, and water quality monitoring equipment. Such equipment will be procured by international competitive bidding where the cost is more than $500,000; through international shopping where the cost is from $100,000 to $500,000 per package; and through local competitive bidding where the cost is less than $100,000. Where the number of local suppliers is small, procurement may be made by direct purchase, with a threshold of $100,000, as will be the case for negotiated service contracts with local institutes or nongovernment organizations (NGOs).

Responsible ADB Officer Ho, Phong Le
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Ministry of Agriculture and Rural Development
Dr. Nguyen Van Tinh
[email protected]
23 Hang Tre Str., Hanoi, Viet Nam
Concept Clearance 08 Mar 1999
Fact Finding 24 May 2005 to 01 Jun 2005
MRM 21 Sep 2005
Approval 19 Dec 2005
Last Review Mission -
PDS Creation Date 04 Jul 2006
Last PDS Update 23 Jan 2013

Loan 2223-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Dec 2005 18 Dec 2006 08 Jun 2007 30 Jun 2012 - 18 Feb 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 99.00 Cumulative Contract Awards
ADB 74.30 17 Jun 2022 80.29 0.00 100%
Counterpart 24.70 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 80.29 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Central Region Water Resources Project Environmental Monitoring Reports Jul 2010
Ethnic Minority Development Plan for Central Region Water Resources Project Indigenous Peoples Plans/Indigenous Peoples Development Plans Oct 2005

Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Viet Nam: Central Region Water Resources Project Project Performance Evaluation Reports Dec 2017

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.


No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.