Viet Nam: Ha Noi Metro Rail System Project (Line 3: Nhon-Ha Noi Station Section)

Transport / Urban public transport

The Government of Viet Nam is well aware of the impact of inadequate transport infrastructure on economic growth. Failure to invest in major public transport to support a major modal shift away from private transport in major cities will constrain economic growth and accelerate degradation of the urban environment. The government supports transport sector investment to promote economic growth and protect the enviornment through a low carbon growth path that reduces greenhouse gas emissions. The country partnership strategy 2012-2015 of the Asian Development Bank (ADB) supports the government's investment program to improve urban transport infrastructure and reduce transportation costs.

Ha Noi is Viet Nam's capital and the second-largest city in Viet Nam; the population of the greater urban area is about 7.5 million (2015), and is expected to grow to more than 8 million by 2025. Private vehicles dominate transportation, with about 90% of transport modal share. Inadequate road infrastructure results in heavy congestion during peak hours, and this will worsen when motorbike riders switch to cars as their household incomes improve. While the road network is expanding slowly, the growth cannot meet the expected increase in demand, and most inner city areas face space limitations on road capacity expansion. Private transport is not sustainable as the principal transportation mode. A well-integrated high capacity pubilc urban transport system is essential to meet the demands of Ha Noi, and a metro rail system is the most appropriate solution for densely populated inner city areas. Without investment in major public transport infrastructure to support a significant modal shift to public transport, economic growth will be severely constrained and the urban enviorment will deteriorate due to high logistics costs and severe congestion. Ha Noi is at an early stage of adoption of private motorization, so investment in major public transport infrastructure represents an effective means to reduce future urban congestion.

Metro line 3 is operational

Improved implementation capacity of HRB

Implementation of the Ha Noi Metro Line 3 project is delayed, with expected completion in 2022 due to (i) delay in partial site handover to CP03 contractor, and (ii) performance of CP03 contractor. As of September 2018, the project has achieved about 42.75% physical progress over the elapsed project life of 6 years. Out of the total 13 contract packages, 12 have been awarded, while with package CP09 Fare and Ticketing System to be financed DGT is under procurement.

The current total estimated cost of the project is $1,375.7 million equivalent. Additional loans were approved in December 2014 by AFD (69.0 million Euro) and DGT (85.0 million Euro) and in August 2016 by EIB (70.0 million Euro). ADB approved its additional financing of $114.8 million on 10 December 2015. The government has committed to providing additional counterpart funds to finance taxes and duties, utility removals, and land acquisition and resettlement (LAR).

The scope of LAR consist of the Line 3 corridor (underground and elevated section), Nhon Depot, and access line to the Depot. A draft resettlement plan was prepared and updated in August 2015 according to ADB Safeguards Policy Statement. Land acquisition for Nhon Depot Phase 1 was undertaken in advance of preparation of the draft resettlement plan for the project. Supplementary mitigation measures for households displaced from Depot Phase 1 were addressed under a supplementary assistance plan prepared in parallel with updating of the resettlement plans.

Two resettlement sites were prepared for affected peoples in the depot and access line. An updated resettlement plan has been prepared, approved by ADB and disclosed on the ADB website in March 2014. HPC and MRB are currently managing the grievance resolution for affected households from depot and access line.

A resettlement plan for the elevated section (viaduct and above ground stations) was prepared by the District People's Committee and has been implemented since June 2012. A due diligence review of the government prepared resettlement plan and implementation was conducted and a corrective action plan (CAP) prepared to address any gaps with the agreed resettlement principles for the Project.

The majority of the underground section of the metro alignment will be constructed under existing roads. Some resettlement will be necessary due to the tunneling works, as well as land acquisition for the underground stations. CP03 contractor prepared its structural survey and tunnel construction impacts report and has submitted the initial draft of the report to ADB and MRB for further discussion and agreement of a time-bound action plan to mitigate impacts. The number of affected households and scope of impacts will be determined following the detailed measurement survey.

The updated resettlement plans are being implemented with full completion expected in 2018. An addendum to the resettlement plan for the underground section will be prepared following the final results of the contractor's detailed ground and structural investigations and detailed measurement surveys.

Environment and social safeguard monitoring reports will be publicly disclosed on ADB website on a semi-annual basis. 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.

Stakeholders focus group discussions were initiated in Q3 2015. A communications strategy articulating action plans will be implemented before and during construction in order to disseminate information about project activities to communities.

Under ADB financing: Contract Package CP3 - underground stations and tunnels: Civil works for about 4km length of underground twin tunnel urban rail line, including 4 underground stations.

Status: Procurement for construction of the underground section has been completed and the CP03 contract awarded in October 2015.