Viet Nam: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program

Sovereign Project | 39500-013 Status: Active

The Asian Development Bank is working with Viet Nam to advise Ho Chi Minh City People's Committee on the integrated development of the first two mass rapid transit lines in the city.  The program is providing convenient, comfortable, safe, affordable, and clean urban travel that improves the quality of urban living and reduces reliance on private modes of travel.

 
Project Name Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program
Project Number 39500-013
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0052-VIE: Multitranche Financing Facility Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program
Ordinary capital resources US$ 540.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Transport - Transport policies and institutional development

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

Project Outcome

Description of Outcome
Progress Toward Outcome Project implementation has been delayed by more than 4 years due to the redesign of fundamental designs of MRT Line 2 system caused by unclear project right-of-way and the Government's independent verification of fundamental designs required by Vietnamese regulation prior to the issuance of bidding documents. Due to design changes and price escalation, the total estimated cost has increased from $1,374 million at feasibility study stage to about $2,322 million, which now requires Government's approval on the increased investment costs. Final cost will be determined after the Project Adjustment Document (PAD) is approved by HCMC People s Committee. Additional funds will be required from ADB and the cofinanciers. The current (original) MFF availability period ends on 30 June 2018. The government has been discussing an extension of the MFF availability period and loan closing date to 13 December 2020, which is the maximum MFF availability period. The additional time is to be able to finance the consulting services and the civil works as much as possible.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

Project 1: Being delayed.

* Contract of Project Management and Implementation consulting services (CS1) signed in September 2012 and will end on 30 June 2017.

* Contract of Social Development & Gender Mainstreaming Program consulting services (CS3) signed in September 2015 with completion date of 31 July 2018.

* Contract of Integrated Sustainable Urban Transport consulting services (CS4) signed in August 2015 with completion date of 30 June 2017.

* Contract of Office building and auxiliary building in Tham Luong Depot (CP1) works signed in December 2014 with the extended completion date of 26 May 2017.

* Bidding document of CP2 civil works package (Infrastructure Construction of Tham Luong Depot) is being prepared and will be issued in 2017.

* Consulting services for External financial audit (CS5), External resettlement monitoring (CS6) and External environmental monitoring (CS7) are being considered to be included in the project's scope of works.

Project 2: Being delayed.

* Project implementation has been delayed by about 4 years due to the required redesign, cancellation of the original procurement, discussion about need for independent verification of fundamental designs, and the required project adjustment document approval.

* Bid invitations for the main civil works packages, i.e. CP3a and CP3b (tunnels and underground stations) and CP4 (transition, elevated station, via duct and spur line) are expected in Q2 2017.

Project implementation has been delayed by more than 4 years due to the required redesign, cancellation of the original procurement, discussion about need for independent verification of fundamental designs, and the required project adjustment document approval. To align with the project progress, an extension of the loan closing date is being considered.

To align with the project progress, an extension of the loan closing date is being considered. Besides, the government is also considering financing land acquisition and resettlement from the loan.

Government is currently reviewing the total estimated cost of the project. KfW and EIB have indicated that they could provide additional financing. ADB has tentatively programmed additional financing for 2020 (stand-by) pending continued progress in implementing the ongoing project.

Geographical Location Ho Chi Minh City

Summary of Environmental and Social Aspects

Environmental Aspects

Project 1:

No major environmental impacts are anticipated to result due to implementation of Tranche 1 which has been classified by ADB as environment category B. An initial environmental examination (IEE) has been prepared based on ADB's Safeguard Policy Statement (2009). To ensure that the project is carried out in accordance with the EMP requirements, the environmental management plan (EMP) has been included in the tender documents and civil works contracts. MAUR has been assisted by the project management support consultant in monitoring the environmental performance of contractors. An environmental assessment and review framework (EARF), agreed by ADB and HCMC PC, has also been prepared which species the requirements for screening, categorization, environmental assessment, as well as preparation and implementation of safeguard plans for Tranche 2

Project 2:

Existing Environmental Conditions: (i) Air Quality: current dust levels exceed GOV limits, (ii) Noise and Vibration: ambient noise exceeds GOV limits, (iii) Surface Water: Tham Luong Canal is contaminated, and (iv) Groundwater & Soil: nearly all parameters within GOV limits.

Impacts from Construction: (i) Air Quality - Construction Equipment creating dust and emissions through building removal and excavation; Mitigation thru Dust control plan, enclosing site, watering/sweeping, emission control system, dust covers, (ii) Noise and Vibration - Increase during construction; Mitigation thru Noise control plan, enclosing site, muffled equipment, day only construction, (iii) Geology and Soils - 1.9 million m3 of soil to be removed; Mitigation thru Spoils disposal plan, 1.45 million m3 recycled and sold, 0.45 million m3 to approved spoils disposal site, (iv) Hydrogeology Groundwater contamination, blocking groundwater flows, loss of wells; Mitigation thru avoidance of excessive pressure, testing for quality monitoring, non-toxic soil additives, local wells at spoils disposal site > 200m deep, (v) Subsidence and settlement Expected 10mm at centerline and 16mm edge of tunnel; Mitigation thru monitoring program for buildings and roads, retaining wall for deep excavation, (vi) Water and Vegetation Resources Pollution of Tham Luong canal, loss of trees, spoils site vegetation loss; Mitigation thru Piers either side of canal, trees replaced, (vii) Traffic and Accessibility - blockage of traffic lanes at stations, equipment and materials impede traffic flows; Mitigation thru Traffic plan, public information program, materials stored on site or used immediately, (viii) Health and Safety - workers and public risks; Mitigation thru Occupational and Community Health and Safety Plan, Emergency Response Plan, public information program.

Operational Impacts: (i) Viaduct Noise and vibration: Mitigation thru noise shield along viaduct, noise barrier at Tan Binh station, continuously welded track, (ii) Underground tunnel noise telegraphing , site clearance for station building; Mitigation thru Noise attenuation at tunnel portal, (iii) Depot train movements, maintenance noise; Mitigation thru Slow travel (5-20 km/h), maintenance inside workshops

Cumulative Impacts: the project is (i) contributing to environmental sustainability initiatives by reducing vehicle trips and need to expand road network, (ii) preserving community livability and green space, (iii) encouraging pedestrian and bicycle traffic along the corridor, and (iv) reducing greenhouse gas emissions Induced impacts: There is expected to be land use to change around the stations and the Depot, re- development around the interchange stations and positive community and economic benefits to HCMC

Involuntary Resettlement

Project 1:

Tranche 1 land requirements for the Depot Priority Area consisted of the administrative area with an area of 2.7 ha. The land for Depot Priority Area was acquired under Tranche 1 of the UMRT2 Project over 2007 to 2009.

The total land actually acquired of the 9 affected households was 4.21ha because their plots of land overlapped with the future land requirements for the Depot and resettlement site (required for Tranche 2 of the Project) and were acquired at that time. The resettlement impacts consisted of loss of land categorized as agricultural as well as loss of trees/crops and secondary structures. No persons were physically displaced. The involuntary resettlement impacts mitigation measures were addressed under a due diligence and corrective action plan (CAP) in 2010. The mitigation measures consisted of compensation at replacement cost for lost land (in either cash or land-for-land) and for non-land assets as well as assistance measures for livelihood restoration and bonuses for timely handing over of land. A due diligence review conducted 2011-2012 concluded that resettlement implementation was in compliance with the 2010 CAP.

Project 2:

Affected land: A total estimated 20 ha will be acquired for the Tranche 2 of the Project comprising 3.7ha land acquisition for Line 2 and the spur line and 16.3ha of privately occupied land for the Depot main area and resettlement site subject to ongoing land acquisition

Affected persons: A total of 428 households will be affected by land acquisition. Of these 56 will be physically displaced. The vast majority of affected households are impacted by Line 2. There will be 33 small businesses and 2 factories along with their employees will be physically or economically displaced.

Types of affected land: The majority of land affected by Line 2 is residential (72%) while at the Depot site most of the affected land is agricultural (96%). Most of the land officially categorized as agricultural land at both the Depot and Line 2 areas is in fact idle, non-productive land.

Impacts on buildings: A total of 509 buildings will be affected by Line 2 and 17 by the Depot land acquisition. The vast majority of affected structures located along the alignment of Line 2 are situated within the official planning line for the road wherein no permanent structures are permitted. As such most of the affected buildings are temporary in nature.

Depot Main Area:

Compensation payments for lost assets based on District 12 People's Committee's decision made in 2004 for acquisition of affected area were updated 2008 based on results of a replacement cost study, prior to the preparation of the RF in 2010.

Record of losses: Affected property in compensation decisions is adequately recorded. Records/compensation decisions pending for 8 households and 2 factories.

Compensation: Land-based compensation is adequate. Cash compensation rates for land likely inadequate and requires replacement cost study

Housing compensation rates based on 2008 construction costs plus 30%.

Assistance: Households to be relocated need rental assistance allowance. Employees experiencing loss of employment at 2 factories should receive compensation for lost income and livelihood restoration assistance. Additional income restoration assistance for households losing productive agricultural land.

Indigenous Peoples No indigenous people identified within the project area.
Stakeholder Communication, Participation, and Consultation
During Project Design

Project 1:

Environment:

Public consultations involving affected people have been conducted during IEE preparation in compliance with ADBs information disclosure and consultation requirements. The objectives of the stakeholder consultation process were to disseminate information on the Project for advance enabling works and Depot office construction and the expected impact, long-term as well as short-term, among primary and secondary stakeholders, and to gather information on relevant issues. Another important objective was to determine the extent of the concerns amongst the community, to address these in the project implementation and to suggest appropriate mitigation measures.

Involuntary Resettlement:

The MAUR and the Peoples Committees of Ho Chi Minh City and District 12 were consulted on ADB resettlement policy requirements and resettlement mitigation measures required for the project and endorsed the CAP. Affected persons were consulted during the preparation of the 2010 CAP by the District 12 Peoples Committee and resettlement consultants regarding resettlement impacts.

Project 2:

Environmental: (a) MRT Alignment: (sessions in 2008 and 2011) - Identified traffic, air and noise quality concerns during construction and overwhelming support for the project at all sessions. (b) Spoils Disposal Site: (December 2011, February 2012) - There is 87% support the MRT2 project, 80% in favor of spoils disposal and major concern is the potential contamination of groundwater but there will be no significant adverse impacts with proper spoils disposal.

Resettlement:

Mainline resettlement Surveys were conducted from June to July 2011, including (i) Inventory of Losses, (ii) Census, (iii) Socio-Economic Survey, and (iv) Replacement Cost Study. Consultations with affected households conducted in August 2011. Key information related to project and contents of resettlement plan mitigation measures was disclosed to affected households December 2011.

Depot area assessment was conducted September 2011 to February 2012 consisting of (i) site visits, (ii) review and analysis of recorded losses (land and non-land assets) and individual compensation plans, (iii) interview of District 12 Compensation Board, (iv) interview of 22 affected households (27% sample), (v) conduct of socio-economic survey of 22 households, and (vi) review to assess if compensation paid for lost assets was at replacement cost.

During Project Implementation

Project 1:

Environment:

Public consultations involving affected people have been conducted during IEE preparation in compliance with ADB's information disclosure and consultation requirements. The objectives of the stakeholder consultation process were to disseminate information on the Project for advance enabling works and Depot once construction and the expected impact, long-term as well as short-term, among primary and secondary stakeholders, and to gather information on relevant issues. Another important objective was to determine the extent of the concerns amongst the community, to address these in the project implementation and to suggest appropriate mitigation measures.

Involuntary Resettlement:

The MAUR and the People's Committees of Ho Chi Minh City and District 12 were consulted on ADB resettlement policy requirements and resettlement mitigation measures required for the project and endorsed the CAP. Affected persons were consulted during the preparation of the 2010 CAP by the District 12 Peoples Committee and resettlement consultants regarding resettlement impacts.

Environment and social safeguard monitoring reports will be publicly disclosed on ADB website. There is also a provision for a grievance redress mechanism based on existing legal provisions to facilitate resolution of complaints regarding environmental, resettlement and other impacts caused by the Project at no cost to the complainant and without retribution.

The CAP was disclosed to affected households following approval. Local authorities and affected households

were consulted during the due diligence review of CAP implementation during 2011-2012.

Project 2:

Not yet due.

Business Opportunities

Consulting Services All consulting services awarded and on-going.
Procurement

CP1: Office building and auxiliary building in Tham Luong depot works (ongoing)

CP2: Main depot works (bidding in October 2017)

CP3a/b: Tunnels and underground stations (bidding in Q2 2017)

CP4: Transition, elevated section, viaduct and spur line (bidding in May 2017)

Responsible Staff

Responsible ADB Officer Mizusawa, Daisuke
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission

Timetable

Concept Clearance -
Fact Finding -
MRM -
Approval -
Last Review Mission -
PDS Creation Date 16 Mar 2006
Last PDS Update 26 May 2017

MFF Facility Concept 0052-VIE

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 866.50 Cumulative Contract Awards
ADB 540.00 - 0.00 0.00 %
Counterpart 326.50 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

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 Public Communications Policy (PCP) 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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) 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.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.