fbpx 39500-023: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranche 1 | Asian Development Bank

Viet Nam: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranche 1

Sovereign (Public) Project | 39500-023 Status: Closed

ADB is helping Viet Nam build a second mass rapid transit line in Ho Chi Minh City. The project will facilitate public transport access and connectivity in six central districts, encourage commuters to shift to public transport, and support low-carbon transport that reduces greenhouse gas emissions.

 
Project Name Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranche 1
Project Number 39500-023
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2731-VIE: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - PFR 1
Ordinary capital resources US$ 40.00 million
Loan: Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - PFR 1
KfW Bankengruppe US$ 36.40 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Transport / Urban public transport

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed project supports the development one of three priority urban rail MRT lines in HCMC to support the establishment of a sustainable urban transportation system. The construction of MRT Line 2 (MRT2) will facilitate public transport access and connectivity in six central districts of HCMC, promote a modal shift from private to public transport, and support low-carbon transport that reduces greenhouse gas emissions. The project directly supports implementation of the MRT2 project, and also the development of necessary facilites at the MRT2 depot.
Project Rationale and Linkage to Country/Regional Strategy

The Government of Viet Nam is well aware of the impact of inadequate transport infrastructure on economic growth. Without investment in public transport infrastructure in cities, economic growth will be constrained and the urban environment will degrade further. The Viet Nam Socio Economic Development Plan for 2011 2015 supports investments in public transport to promote economic growth and protect the environment. ADB's 2007 2010 Viet Nam country strategy and program supports the government's investment program to improve urban transport infrastructure and reduce transportation costs

Ho Chi Minh City (HCMC) is the largest city in Viet Nam, with a population of over 9 million that is expected to grow to 13.8 million by 2025. Private vehicles dominate transportation, but road infrastructure is reaching the saturation point, which will worsen as more motorbike users convert to cars with improving household incomes. Road network development faces space limitations and will not be able to meet the expected increase in demand, so private transport is not sustainable as the principal transportation mode. A well-integrated high-capacity public transport system is essential, and a rail mass rapid transit (MRT) system is most appropriate for densely populated cities. Without improvements in major public transport infrastructure, combined with policies that support a modal shift to public transport, HCMC's economic growth will be constrained by high logistics costs and severe congestion

Impact Competitive MRT2 services along the project corridor
Project Outcome
Description of Outcome Effective support for implementation of MRT2 infrastructure
Progress Toward Outcome

Consulting Service

CS1 (Project Management and Implementation Support), awarded in September 2012, was closed in June 2017. The subsequent services will be transferred to the new CS2B (Implementation Consulting Services) contract to be funded by KfW. MAUR and KfW have finalized the terms of reference for CS2B and will start recruitment process in Q4 2018 upon an approval of the Project Adjustment Document (PAD).

CS2 (Implementation Consulting Services) funded by KfW is on-going, but has been demobilized since mid-August 2018 due to contractual issues. The project cofinanciers are following up closely with HCMC PC/MAUR to settle the issues and retain the service, which is critical to the whole project, given on-going procurement of key civil works contracts.

CS3 (Social Development & Gender Mainstreaming Program), awarded in September 2015, was closed on 30 June 2017. The updated program will be implemented by CS2B.

CS4 (Integrated Sustainable Urban Transport), awarded in August 2015, was successfully completed on 30 June 2017.

Civil Works

CP1 (Office Building and Auxiliary Buildings at Tham Luong Depot) was completed. Final payments are expected to be settled by end of September 2018.

CP2 (Infrastructure Construction of Tham Luong Depot): this contract will be transferred from Tranche 1 to Tranche 2 after a change in the scope. The procurement to start in Q4 2019 due to delayed approval of project PAD, a pre-condition for a change in the scope. The contract expected to be awarded in late 2020.

Implementation Progress
Description of Project Outputs

Construction of initial site works and office facilities at depot

Provision of implementation support program

Social development and gender mainstreaming program implemented

Completion of integrated sustainable urban transport study

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

Partially implemented but with delay.

CP1 (Office Building and Auxiliary Building at Tham Luong Depot) was physically completed, and final payments to be settled by end of September 2018.

CP2 (Infrastructure Construction of Tham Luong Depot) is expected to commence in Q3 2020 and completed by 2024 under Tranche 2.

CS1 (Project management and implementation support) was closed in June 2017. To continue the program, a new CS2B consulting service package to be financed by KfW will start from mid-2019.

Contract CS4 (Integrated Sustainable Urban Transport) was completed in June 2017. MAUR accepted the report at the same time. It provided HCMC PC/MAUR with recommendation for transport policy. It is necessary for them to apply the policy. CS3 (Social Development and Gender Mainstreaming program) provided MAUR with Gender Action Plan, which will be reflected in physical infrastructure. The remaining scope of work will be implemented under Tranche 2.

Geographical Location Huyen Tam Binh, Phuong Tan Thoi Nhat, Quan Ba, Quan Mot, Quan Muoi, Quan Tan Binh, Tan Binh, Tan Phu
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects 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 had 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, had also been prepared which specifies the requirements for screening, categorization, environmental assessment, as well as preparation and implementation of safeguard plans for Tranche 2.
Involuntary Resettlement 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 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.
Indigenous Peoples No indigenous people identified within the project area
Stakeholder Communication, Participation, and Consultation
During Project Design

Environment: Public consultations involving affected people were 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: MAUR, HCMC Peoples Committees, 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.

During Project Implementation

Environment: Public consultations involving affected people were 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: MAUR, HCMC People's Committees, 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.

The disclosure of environment and social safeguard monitoring reports on ADB website needs to be ensured. The last report was disclosed in July 2016. There is 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.

Business Opportunities
Consulting Services

Three consulting contract packages:

CS1 - Project Management and Implementation Support to MAUR

CS3 - Social Development & Gender Mainstreaming Program

CS4 - Integrated Sustainable Urban Transport

Procurement

Two ICB civil works contract packages:

CP1 - Initial depot works

CP2 - Main depot works

Responsible ADB Officer Daisuke Mizusawa
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
Timetable
Concept Clearance 02 Mar 2010
Fact Finding 22 Apr 2010 to 29 Apr 2010
MRM 20 Jul 2010
Approval 22 Dec 2010
Last Review Mission -
PDS Creation Date 17 Jul 2007
Last PDS Update 28 Sep 2018

Loan 2731-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Dec 2010 11 Mar 2011 20 Dec 2011 30 Jun 2017 - 09 Apr 2019
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 104.30 Cumulative Contract Awards
ADB 40.00 22 Dec 2010 13.96 0.00 97%
Counterpart 27.90 Cumulative Disbursements
Cofinancing 36.40 22 Dec 2010 14.46 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - 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.

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Title Document Type Document Date
Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program – Tranches 1 and 2: Audited Project Financial Statements (For the year ended 31 December 2016) Audited Project Financial Statements Jun 2018
Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program – Tranches 1 and 2: Audited Project Financial Statements (For the year ended 31 December 2017) Audited Project Financial Statements Jun 2018
Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranches 1-2: Audited Project Financial Statements (For the Year ended 31 December 2015) Audited Project Financial Statements Jun 2016
Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranches 1-2: Audited Project Financial Statements (For the Year ended 31 December 2014) Audited Project Financial Statements Sep 2015
Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranche 1 Procurement Plans Oct 2013
Project Agreement for Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Loan 1 between Asian Development Bank and Ho Chi Minh City People’s Committee dated 11 March 2011 Project/Program Agreements Mar 2011
Loan Agreement for Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Loan 1 between the Socialist Republic of Viet Nam and Asian Development Bank dated 11 March 2011 Loan Agreement (Ordinary Resources) Mar 2011
Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program: Facility Administration Manual Facility Administration Manual Nov 2010

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 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.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found