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 Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|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|
|Description of Outcome||Effective support for implementation of MRT2 infrastructure|
|Progress Toward Outcome||
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.
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.
|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|
|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.
Three consulting contract packages:
CS1 - Project Management and Implementation Support to MAUR
CS3 - Social Development & Gender Mainstreaming Program
CS4 - Integrated Sustainable Urban Transport
Two ICB civil works contract packages:
CP1 - Initial depot works
CP2 - Main depot works
|Responsible ADB Officer||Mizusawa, Daisuke|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Viet Nam Resident Mission|
Ho Chi Minh City People's Committee
Dao Trong Tho
86 Le Thanh Ton Street, Ben Nghe Ward,
District 1, Ho Chi Minh City
|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|
|Approval||Signing Date||Effectivity Date||Closing|
|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||07 Sep 2021||14.46||0.00||100%|
|Cofinancing||36.40||07 Sep 2021||14.46||0.00||100%|
|Status of Covenants|
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 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.
None currently available.
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No tenders for this project were found.
No contracts awarded for this project were found
|Title||Document Type||Document Date|
|Ho Chi Minh City Urban Mass Rapid Transit Line 2 Investment Program - Tranche 1||Procurement Plans||Oct 2013|