ADB is helping restore a 285-kilometer railway line in Viet Nam that runs from Yen Vien station in the northern suburbs of the capital Hanoi to Lao Cai, a province bordering the People's Republic of China. This is expected to boost bilateral trade through the Kunming-Hai Phong transport corridor. The project will also assist with institutional reform of the railway subsector.
| Project Name | VIE: GMS Kunming-Haiphong Transport Corridor: Yen Vien-Lao Cai Railway Upgrading Project | ||||||||||||
| Project Number | 39175-013 | ||||||||||||
| Country | Regional Viet Nam |
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| Project Status | Closed | ||||||||||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Regional integration |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Private sector development |
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| Sector / Subsector | Transport / Rail transport (non-urban) |
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| Gender Equity and Mainstreaming | Some gender elements | ||||||||||||
| Description | The Project is designed to promote sustainable economic growth by rehabilitating 285 kilometers of railway line from Yen Vien station in the the northern suburbs of Hanoi to Lao Cai on the border with the People's Republic of China (the PRC). The Project will develop a safe, efficient, and environmentally sustainable railway transport system in the northwest region of Viet Nam, enhance connectivity with the PRC through the Kunming-Hai Phong transport corridor, and assist with institutional reform of the railway subsector. | ||||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | The Hai Phong to Lao Cai railway forms part of the Kunming-Haiphong transport corridor linking Yunna province in the PRC with Viet Nam. Minimal investments in improvements and maintenance have meant that the railway bed and track have deteriorated and no longer meet capacity and safety requirements. The Project will rehabilitate the rail system to ensure it is capable of operating safely and efficiently. Increasing capacity at stations and main terminal points and carrying out strategic rehabilitation will permit the use of heavier and longer trains and an increase in the number of trains using the railway line. The Project will contribute to the Asian Development Bank's support for cooperation in the Greater Mekong Subregion and for the Government's investment in transport infrastructure. The railway from Yen Vien, near Hanoi, to Lao Cai on the border with the PRC is part of the Kunming-Hai Phong transport corridor, which is a strategic link in the GMS north-south corridor. Developing the transport corridor is a high-priority subregional transport project under the GMS Economic Cooperation Program, which aims to develop efficient multimodal infrastructure links between the GMS countries. The proposed Project will restore and expand the capacity of a long-established link between Yunnan province in the southwest of the PRC and the strategic port of Hai Phong in Viet Nam on the Gulf of Tonkin. Landlocked Yunnan province has a growing need for efficient transport routes to sea ports for the export of its goods. |
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| Impact | Increased cross-border trade with Yunnan province in the PRC. | ||||||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | More efficient rail transportation system |
| Progress Toward Outcome | The works under the Project have been completed as scheduled in end 2015. ADB is conducting final reviews. |
| Implementation Progress | |
| Description of Project Outputs | Railway infrastructure rehabilitation and upgrading, along with all associated resettlement and social mitigation activities on Yen Vien-Lao Cai railway line Financial management capacity of VNR improved |
| Status of Implementation Progress (Outputs, Activities, and Issues) | The works under the Project have been completed as scheduled in end 2015. ADB is conducting final reviews. |
| Geographical Location | Viet Nam - Bao Thang, Bao Yen, Binh Xuyen, Dong Anh, Gia Lam, Ha Hoa, Lam Thao, Lao Cai City, Me Linh, Phu Tho Township, Phuc Yen township, Tam Duong, Thanh Ba, Tran Yen, Van Yen, Viet Tri City, Vinh Phuc, Vinh Tuong, Vinh Yen Township, Yen Bai City |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | ADB's environmental safeguards policy requirements have been followed during project design and project implementation. |
| Involuntary Resettlement | ADB's social safeguards policy requirements, especially those related to involuntary resettlement, have been followed during project design and project implementation. |
| Indigenous Peoples | ADB's social safeguards policy requirements have been followed during project design and project implementation. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | The project was designed in a consultative and participatory manner. Views and suggestions from relevant stakeholders were considered. |
| During Project Implementation | The project was implemented in a consultative and participatory manner. Views and suggestions from relevant stakeholders were considered. |
| Business Opportunities | |
|---|---|
| Consulting Services | The Government has engaged an international consulting firm supported by national consultants for detailed project design, preparation of technical specifications and bid documents, construction supervision, and quality assurance. Additional responsibilities included environmental supervision and management, updating, implementation and monitoring of the resettlement plan, socioeconomic impact assessment, and project performance monitoring. About 200 person-months of international consultants and 524 person-months of national consultants was required. International consultants for the Project were recruited using the quality- and cost-based method and a full technical proposal in accordance with ADB's Guidelines on the use of Consultants. |
| Procurement | The procurement, financed from the ADB and AFD loans, was done in accordance with ADB's Procurement Guidelines. Civil works contracts have been packaged according to three subsections of the Project route. Each package included all works on the subsection, including track, bridges, realignment, embankment stabilization, station upgrading, and safety works. The civil works contracts were procured by international competitive bidding (ICB) among prequalified bidders. The procurement of the DGTPE-financed package of rails, track switches, and fittings was undertaken in accordance with the Government of France's procurement rules. Other supply contracts that did not exceed $100,000 in value were procured through shopping. |
| Responsible ADB Officer | Ahonen, Arto T. |
| Responsible ADB Department | Southeast Asia Department |
| Responsible ADB Division | Transport and Communications Division, SERD |
| Executing Agencies |
Viet Nam Railways (VNR) Tran Quoc Dong 95-97 Le Duan Street, Hanoi, Viet Nam |
| Timetable | |
|---|---|
| Concept Clearance | 05 Aug 2005 |
| Fact Finding | 15 May 2006 to 26 May 2006 |
| MRM | 10 Aug 2006 |
| Approval | 21 Dec 2006 |
| Last Review Mission | - |
| PDS Creation Date | 03 May 2006 |
| Last PDS Update | 27 Sep 2016 |
Loan 2302-REG
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 19 Dec 2006 | 16 Jan 2007 | 25 Sep 2007 | 31 Dec 2012 | 31 Dec 2015 | 21 Dec 2016 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 117.50 | Cumulative Contract Awards | |||
| ADB | 60.00 | 19 Dec 2006 | 55.31 | 0.00 | 99% |
| Counterpart | 20.00 | Cumulative Disbursements | |||
| Cofinancing | 37.50 | 19 Dec 2006 | 55.72 | 0.00 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | - | - | - | Satisfactory |
Loan 8227-REG
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 21 Dec 2006 | 08 Feb 2007 | 25 May 2007 | 31 Dec 2012 | 30 Apr 2014 | 30 Apr 2014 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 40.00 | Cumulative Contract Awards | |||
| ADB | 0.00 | 21 Dec 2006 | 0.00 | 42.52 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 40.00 | 21 Dec 2006 | 0.00 | 42.52 | 100% |
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.
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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.
Evaluation Documents See also: Independent Evaluation
Title |
Document Type | Document Date |
|---|---|---|
| Viet Nam: Greater Mekong Subregion Kunming–Hai Phong Transport Corridor: Yen Vien–Lao Cai Railway Upgrading Project | Validations of Project Completion 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.
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Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Loan No. 2302-VIE: Greater Mekong Subregion: Kunming -Hai Phong Transport Corridor - Yen Vien Lao Cai Railway Upgrading [Packages CP1, CP2 and CP3] | Prequalified applicants | Archived | 30 Apr 2010 |
Contracts Awarded
No contracts awarded for this project were found
Procurement Plan
|
Title |
Document Type | Document Date |
|---|---|---|
| GMS Kunming-Haiphong Transport Corridor - Yen Vien-Lao Cai Railway Upgrading Project: Procurement Plan | Procurement Plans | Jan 2017 |