40080-024: Strengthening Sustainable Urban Transport for Ha Noi Metro Line 3 | Asian Development Bank

Viet Nam: Strengthening Sustainable Urban Transport for Ha Noi Metro Line 3

Sovereign (Public) Project | 40080-024 Status: Active

The Asian Development Bank is helping Viet Nam upgrade facilities for users of stations along Ha Noi's metro line 3 railway. The project is building pedestrian subways, bus stops and other physical assets to help metro users get in an out of stations quickly and safely. It complements ADB support for construction of the metro line itself.

Project Name Strengthening Sustainable Urban Transport for Ha Noi Metro Line 3
Project Number 40080-024
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3235-VIE: Strengthening Sustainable Urban Transport for Ha Noi Metro Line 3
concessional ordinary capital resources lending / Asian Development Fund US$ 4.20 million
Loan 8291-VIE: Strengthening Sustainable Urban Transport for Ha Noi Metro Line 3
Clean Technology Fund US$ 48.95 million
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

The Project will develop an integrated public transport system in five districts of Ha Noi that will support effective utilization of Ha Noi metro Line 3 . Improved public transport will facilitate public transport connectivity and greatly enhance access in five districts of Ha Noi, as well as support the Ha Noi Urban Transport Master Plan (HUTMP) objective of increasing ridership on public transport to over 40% of demand and reducing dependency on vehicle ownership. The Project will support Ha Noi's climate change mitigation efforts in adopting a low carbon transport growth path, which is more energy efficient and lowers GHG emissions.

The Project will provide infrastructure for improving accessibility to Metro Line 3 stations, implement feeder bus links, a public transport management system, integrated multi-modal stations with "park and ride" facilities, as well as a comprehensive parking plan for the city. The project components, public transport services and other facilities will be designed to incorporate gender sensitive features that will complement similar measures under the Metro Line 3 project. In addition, any policy and regulatory measures developed will be fully inclusive. The proposed project management and institutional capacity building measures for Metro line 3, together with expected policy and regulatory reforms, will also help achieve an improved public transport system and reduce GHG emissions. ADB proposes concurrent assistance to develop sustainable urban transport in Ho Chi Minh City for mass rapid transit line 2, and both projects' preparation and implementation will be closely coordinated, including between respective city governments.

The Project outputs will be: (i) improved accessibility features in and around metro stations; (ii) integrated and innovative public transport services and measures connecting to metro stations; and (iii) support for transformational policies and regulatory measures to encourage modal shift to public transportation modes. Measures related to the bus system will be closely coordinated with ongoing institutional reform and system improvements.

Project Rationale and Linkage to Country/Regional Strategy

Ha Noi is at an early stage of transport urbanization, having moved from heavy usage of bicycles to motorcycles in the last 10 years and now increasingly cars. Private vehicles dominate urban transportation, with motorcycles being the most prevalent means at about 80% share. Continued increasing car ownership, together with significant increase in number of motorcycles, has resulted in severe congestion during peak hours with poor urban environment and road safety. The situation is expected to worsen if current transport growth trend of 9% continues and more motorbike owners convert to cars . The existing public transport system consists of a poor and badly integrated bus network that is not really competitive with private transport modes, although under an ongoing World Bank loan is expected to improve the bus system by 2016. Traffic planning and parking management is weak and inadequate to effectively control traffic and demand. Importantly, there is no policy and regulatory measures to discourage private transport modes and the inadequate public transport system cannot attract people using private vehicles.

Ha Noi People's Committee (HPC) has plans to invest in mass transit system, with four metro lines under phase 1 development. Construction of phase 1 for Metro Line 3 is financed by ADB, Agence Francaise de D veloppement (AFD), European Investment Bank and Direction Generale du Tresor, with works commenced in October 2010 and the expecting to be operating in 2016. The three other metro lines are expected to be completed by 2020. However there is a need to carefully design complementary measures to ensure the emergence of an integrated public transport system that is attractive, accessible and affordable and build upon other small scale technical assistance provided by AFD and French city-to-city cooperation program to improve public transport. The Project will directly support integration of Metro Line 3 as part of a multimodal, environmental friendly transport system to attract passengers to urban public transport services to promote inclusive low carbon transport thus reducing greenhouse gas (GHG) emissions and environmental pollution.

Impact Enhanced public transport system serving six districts of Ha Noi.
Project Outcome
Description of Outcome Improved integration of metro line 3 stations with other modes of public transport
Progress Toward Outcome Selection of consulting services ongoing, with possible restructure of the scope of the consulting services due to their overlap with some planned and on-going interventions.
Implementation Progress
Description of Project Outputs

Metro Line 3 station access improved

Public transport system improved

Public transport policy developed

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

The project outputs are not yet due.

The project has faced 1.5 years delay in implementation due to its heavy dependence on the progress of the Metro Line 3 Project (Loans 2741/3363/3364/8302), which is 4-year delay, and expected to complete by 2022; and

partially to delayed consulting services recruitment.

Such delay has caused:

(i) changes in the scope of consulting service packages due to their potential overlaps with some on-going and / or planned interventions;

(ii) a need for a loan extension to 2022 to align with the Metro Line 3 Project's schedule; and

(iii) slow project financial progress.

The final scope of the consulting service packages shall be confirmed with the executing and implementing agencies by end of April 2017.

It is expected that Ha Noi People's Committee will initiate preparatory works for project adjustments and loan extension in April 2017 and approve by end of 2017.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The project is assessed as category B for environment.

The draft initial environmental examination, which has been prepared based on ADB's Safeguard Policy Statement, has been reviewed by ADB and is being revised. The approved initial environmental examination will be disclosed on the ADB website upon receipt from Hanoi People's Committee.

No natural ecosystems exist in the project area, which is heavily populated. Land use is predominantly commercial or residential. The project will not involve major civil works and is not likely to result to significant adverse environmental impacts during construction and operation. Public consultations with affected people were conducted during preparation of the initial environmental examination, in compliance with ADB's information disclosure and consultation requirements. Department of Transport will ensure that the environmental management plan is included in all bid documents.

Involuntary Resettlement

The project is assessed as category C for involuntary resettlement.

With respect to involuntary resettlement, land will be provided unencumbered to the project adjoining Ngoc Khanh station in 2018. This land is to be acquired under the ADB financed Metro Line 3 project in full compliance with ADB Safeguard Policy Statement (2009) to be used as a construction work area by a contractor under the aforementioned project.

Resettlement due diligence of the proposed project sites has indicated there will be no other involuntary resettlement impacts

Indigenous Peoples The project is assessed as Category C for indigenous peoples safeguards.
Stakeholder Communication, Participation, and Consultation
During Project Design

During the PPTA at each district extensive consultations were conducted with stakeholders, including key informant interviews and focus group discussions with disability groups and student. There were several key stakeholder consultations with members of the Disabled Community who strongly endorsed the Metro Project for its members. A round table was held with the disabled community and the engineers from the PPTA team noted all the engineering concerns raised.

A communication and participation plan will be prepared for the project to ensure that stakeholders' views will be taken in to consideration in the project detailed design to promote universal access features and usability. Training for transport providers will be carried out in the future project to improve their awareness of disability and the other issues related to the safety and security. IEC materials such as posters and pocket guidelines will be developed for the training courses as well as for transport users in the project area. Consultation and modification of awareness training materials will be done during the next phase of the project.

During Project Implementation ADB mobilized a communication expert in 2015 to (i) ensure that people affected by resettlement, environmental impacts, and so on are timely receive reliable information, (ii) ensure that interested partners and public are aware of and receive project information, and (iii) raise public awareness and foster demand of metro use in future. The expert conducted consultation with government officials and stakeholders and focus group meetings with various groups (e.g., students, senior citizens) to improve project's communication strategy. The strategy will be used for communication with stakeholders before/during/after civil works.
Business Opportunities
Consulting Services International and local consulting services to support design, supervision and project management, as well as to undertake bus management and urban transport policy studies
Procurement civil works and equipment related to public transport facilities and services
Responsible ADB Officer Mizusawa, Daisuke
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Ha Noi People's Committee
79 Dinh Tien Hoang Street, Hoam Kiem,
Ha Noi, Vietnam
Concept Clearance 18 Oct 2011
Fact Finding 22 Apr 2014 to 05 May 2014
MRM 15 Aug 2014
Approval 12 Dec 2014
Last Review Mission -
Last PDS Update 31 Mar 2017

Loan 3235-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Dec 2014 09 Feb 2015 09 Jul 2015 30 Jun 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 4.20 12 Dec 2014 0.00 0.00 0%
Counterpart 5.80 Cumulative Disbursements
Cofinancing 0.00 12 Dec 2014 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - Satisfactory

Loan 8291-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Dec 2014 09 Feb 2015 09 Jul 2015 30 Jun 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 48.95 Cumulative Contract Awards
ADB 0.00 12 Dec 2014 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 48.95 12 Dec 2014 0.00 0.23 0%

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.

None currently available.

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.


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Contracts Awarded

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