40238-023: Productive Rural Infrastructure Sector Project in the Central Highlands | Asian Development Bank

Viet Nam: Productive Rural Infrastructure Sector Project in the Central Highlands

Sovereign (Public) Project | 40238-023 Status: Active

ADB is helping Viet Nam improve productive rural infrastructure in the Central Highlands, including irrigation systems. The project will cover Dak Lak, Dak Nong, Gia Lai, Kon Tum, and Lam Dong provinces, targeting areas with good potential for agricultural production and existing irrigation schemes. It will increase capacity to efficiently develop, manage, and use productive rural infrastructure.

Project Details

Project Officer
Ho, Phong Le Southeast Asia Department Request for information
Country
  • Viet Nam
Modality
  • Loan
Sector
  • Agriculture, natural resources and rural development
 
Project Name Productive Rural Infrastructure Sector Project in the Central Highlands
Project Number 40238-023
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3032-VIE: Productive Rural Infrastructure Development Project in the Central Highlands
concessional ordinary capital resources lending / Asian Development Fund US$ 80.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Irrigation

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project aims to regenerate and upgrade underdeveloped or outdated productive rural infrastructure (PRI), targeting areas with good potential for agricultural production with existing irrigation schemes. The PRI investments will include irrigation and associated access infrastructure. The project will be carried out in Viet Nam''s Central Highland provinces (CHPs) of Dak Lak, Dak Nong, Gia Lai, Kon Tum, and Lam Dong over 5 years. It directly supports the Government of Viet Nam''s National Target Program for New Rural Development, 2010- 2020 (NRD) with activities based on the socioeconomic development plans (SEDPs) of the participating provinces. It supports the National Water Resources Strategy (NWRS), 2006- 2020, for which the Asian Development Bank (ADB) is playing a major role in revising and updating water resources policy and strengthening water sector institutions.
Project Rationale and Linkage to Country/Regional Strategy

The majority (about 71%) of the CHP population lives in rural areas where the primary income source is farming. While poverty has been reduced nationwide from 18.1% in 2002 to 10.7% in 2010, in the CHPs in 2010, the average poverty rate was 22.2%. Contributing factors are difficult terrain, and hence inaccessibility, and the lack of commercial opportunities, social services, and arable land in some of the areas, compounded by deteriorated PRI. Poverty rates in some isolated areas of the CHP are 70% -80% among ethnic minority people, who represent between 21% and 53% of the provincial populations. Women, especially those of ethnic minorities, tend to account for higher poverty rates than men.

Less than 11% of arable land in the CHP has irrigation infrastructure and much of it is performing poorly because of age, under-engineered for current use, limited funding available for new investment, and a historically limited capacity for asset maintenance. Viet Nam's record of poverty reduction has been driven by agricultural reforms facilitated by good access to infrastructure. Viet Nam has gained an important position in the global agricultural market, particularly coffee, pepper, and rice. More effective PRI will greatly increase production of these products. The project will improve PRI to enable optimal agricultural output, diversity, and production efficiency. This is also expected to allow quicker and safer access to markets, employment opportunities, and social services. Simultaneously, it will lower the costs of rural production and marketing, and reduce food wastage during transport and handling. PRI in good condition will increase incomes from on- and off-farm employment, lessen the work burden of women, and boost food availability. The project is pro-poor, will increase food security as well as land and water resource productivity, all of which strengthen climate change resilience.

The project advances three key NRD priorities: (i) to extend the coverage of PRI development to the CHPs; (ii) to improve PRI sustainability by concentrating investments in selected productive areas and using appropriate designs to enable sustainable management and boost climate change resilience; and (iii) to strengthen the capacity of stakeholders to sustainably develop, manage, operate, and use PRI.

The project has innovative technical and implementation features that highlight ADB's value addition to the sector. Four technical features that contribute to the ongoing policy dialogue on water resource management in general and irrigation sustainability in particular are: (i) strengthening of dams and reservoirs that are the backbone of irrigation systems in the CHPs but are now aging and likely to become increasingly unstable, especially given the predicted stresses associated with climate change it is anticipated that this initiative will lead to an expansion of future investments in reservoir stability; (ii) in conjunction with the dam and reservoir improvements, establishment of community-based danger warning systems; (iii) integration of soil and water conservation measures into PRI design through bioengineering techniques this will improve the environs in the subproject areas and the stability of PRI; and (iv) research and demonstration of approaches to better irrigation and water management in the CHPs, which will be essential for coping with more extreme weather.

The central government's SEDP for 2011- 2016, the NRD, and the NWRS prioritize upgrading PRI to serve the dual objective of social and economic development. This includes improving irrigation for rural water supply, double paddy cropping, and the expansion of irrigated areas for cash crops. It also includes developing rural transport infrastructure for the timely movement of agricultural inputs and surpluses as well as the improvement of social conditions. In Viet Nam it is demonstrated that the poor gain the most by better access. There are two ongoing ADB-supported PRI projects : Integrated Rural Development Sector Project in the Central Provinces and Sustainable Rural Infrastructure Development Project in Northern Mountain Provinces. Lessons were incorporated from these as well as six successfully completed, MARD-implemented, and ADB-supported PRI projects, particularly the Rural Infrastructure Sector Project. It builds upon the successful ADB-supported interventions in water and irrigation development and management, notably the Second Red River Basin Sector Project, which helped formulate Viet Nam''s law on water resources and train the irrigation and drainage management companies (IDMCs), and the Central Region Water Resources Project, which helped develop successful institutional models for IDMCs and water user organizations (WUOs). The project complements investments in poverty reduction being made in the CHP by the development partners.

The project design is based on (i) a recognized demand to rehabilitate and upgrade priority PRI to improve socioeconomic conditions in the CHPs; (ii) government and ADB strategies of providing PRI as a means to reduce poverty as described in the government's SEDP and NRD, as well as ADB's country partnership strategy; and (iii) the successful design, implementation experience, and lessons from related past and ongoing ADB-funded projects, in particular the need to (a) prescreen subprojects for prima facie viability with minimal safeguard issues; (b) limit the geographic coverage to obtain a good balance between capital investments and overhead costs, as well as contain implementation weaknesses at a manageable level; (c) confine activities to those that can be readily carried out within local capacities; (d) carefully prepare the procurement plan to optimize contract size, number, and methodology; and (e) take advance actions to ensure that competent counterpart project staff are assigned and trained, and prepare procurement packages to reduce implementation delays.

Impact Increased rural incomes and sustained livelihoods in the Central Highland Provinces (CHPs).
Project Outcome
Description of Outcome Improved rural and agricultural productivity in the Central Highland Provinces.
Progress Toward Outcome Last review mission done in May 2017. LIC was mobilized in May 2015. Procurement Plan was updated.
Implementation Progress
Description of Project Outputs

1. Productive rural infrastructure improved

2. Enhanced capacity to develop, manage, and use productive rural infrastructure.

3. Efficient project management

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

- 12 out of 15 subprojects (phase 1&2) awarded, of which 11 being implemented

- Overall project physical progress is about 30% as of 31 August 2018; elapsed time 65%

- 9 additional subprojects selected for phase 3

- 14 training courses organized on project management

- 5 training courses organized on development and management of PRI

- 1 oversee study tour to Taiwan undertaken for staff of MARD, CPMU, DARDs, PPCs, PPMUs.

- 25 training courses on optimal use of upgraded PRI organized

Geographical Location An Quy, Bao Thuan, Buon Dak N'drong, Buon Dier, Buon Ma Thuot, Buon Tria, Da Lao, Dak Doa, Dak Ket, Dak Long Tuar, Dak Mam, Dak Mon, Dak Nang, Dak Nghe, Dak Nong, Duc Lang, Ea Dreh, Gia Lai, Ho Dak M'Hang, Huyen Cu Jut, Huyen Da Teh, Huyen Dak Mil, Huyen Di Linh, Huyen Ea Kar, Huyen Krong Nang, Huyen Krong No, Huyen Krong Pak, Huyen Lam Ha, Huyen Tra My, Kon Dak Dem, Kon Tao, Kon Trang Kla, Kon Tum, Nghia Hung, Plei To Von, Tinh Dak Lak, Tinh Lam Dong, Xa A Dok, Xa Chu Jor, Xa Dak La, Xa Ha Tam, Xa Sa Son, Xa Tan Lap, Xa Tan Son, Ya Soup
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects Adverse environmental impacts are not likely. The initial environmental examinations for three sample subprojects found no indication of significant adverse environmental impacts. The PPTA subproject screening excluded those subprojects with potentially serious negative environmental impacts. MARD has gained environmental safeguard management capacity through implementing similar projects. Additional training for the CPMU safeguard staff and the PPMUs is included in the project costs. An environmental assessment and review framework has been agreed to and disclosed by the government and ADB to guide environmental assessments and measures to deal with potential environmental impacts. Proper use of pesticides and fertilizer will be promoted as part of the irrigation efficiency and management training to minimize soil and water pollution. The paving of roads will reduce dust, which has negative impacts on human and livestock health, crops, and safety. Measures to improve climate change resilience include the stabilization of local environs by improving reservoirs and integrating soil and water conservation measures into subproject design. Also, greater irrigation efficiency will reduce the stress on water resources.
Involuntary Resettlement No significant resettlement impacts are expected because the majority of PRI improvements will occur along existing rights of way and will mainly require compensation for roadside trees, crops, and/or small structures with possibly a small amount of land acquisition. No actual resettlement is foreseen the absence of major resettlement issues was one of the criteria when screening subprojects for eligibility. An indication of the effectiveness of the screening is that the three RSPs were assessed to be category C for resettlement and did not require resettlement plans. The government and ADB have agreed on and disclosed on the ADB website a project resettlement framework and associated procedures, which outlines the responsibilities for preparing resettlement plans for potential category B subprojects. The plans shall be submitted and approved by ADB before the subprojects are implemented. Compensation, allowances, operation and administration costs, surveys, monitoring, and reporting will be financed from provincial counterpart funds. Adequate provisions will be made for preparing and implementing resettlement plans, and for engaging resettlement specialists.
Indigenous Peoples In the priority subprojects proposed by the CHPs, ethnic minorities were found to account for 21% 98% of the subproject area population; the predominant share being 47%. The minorities will be among the main beneficiaries of the project. Moreover, no negative changes are envisaged in their farming and livelihood systems or their cultural practice and ancestral domains. Any possible negative impacts such as temporary loss of crops or crop land for construction purposes will be avoided as best as possible, or will be compensated according to the resettlement plans. Impacts in these areas are expected to be overwhelmingly positive since the subprojects will be aimed at overall economic and social improvement of the population. An ethnic minority development framework to manage any issues that might arise has been agreed to and disclosed by the government and ADB. It guides the preparation of ethnic minority development plans for potential category B subprojects. The plans shall be approved by ADB before a subproject is implemented. As with involuntary resettlement, the three RSPs were assessed to be category C for indigenous people and did not require such plans.
Stakeholder Communication, Participation, and Consultation
During Project Design In consultation with the Ministry of Agriculture and Rural Development (MARD) and the CHPs, 28 candidate subprojects from the provinces' SEDPs have been screened for possible inclusion in the project and were found to meet agreed-upon eligibility criteria for preliminary technical, financial, economic, environmental, and social considerations. Feasibility studies were carried out in three representative subprojects (RSPs), with positive results led by substantial increases in farm incomes, including for poor farmers, from both higher production and employment. The other subprojects have been prioritized and will be subject to feasibility studies during implementation.
During Project Implementation

An important position in each PPMU will be the Safeguard Officer (SO) appointed to ensure compliance with public consultation requirements, environmental impact assessment and mitigation and social impact assessment and mitigation (including resettlement) aspects of subproject implementation. The SO will play a key role in ensuring that supporting initiatives are implemented so that the poor and ethnic minorities are able to participate equally in subproject benefits. The SO will supervise the subproject benefit monitoring and evaluation system as well as liaison with beneficiary communities.

At the commune levels, the proposed Project will coordinate closely with the existing local administrations, utilizing the Commune People's Committee as the project point of liaison. PPMUs will work in close cooperation with commune personnel who will be responsible for ensuring coordination of day-to-day activities at the commune level between the Project and commune authorities. These activities will include organizing public consultations and design and implementation monitoring by Commune Supervision Boards (CSB). The CSB already are supported by a regular budget from the Districts.

Business Opportunities
Consulting Services

All planned consulting services contracts were awarded including LIC, Audit, M&E, Baseline studies, safeguards monitoring & training, etc.

Dam and road safety awareness campaigns, and HIV/AIDS were included in the LIC contract.

For specials studies involving piloting, demonstrating and researching water management techniques and systems, consulting entities will be engaged/recruited by the CPMU using FBS.

Procurement

There are estimated to be 45 to 55 civil works contracts of value from $1 million to $3.5 million. Among them, 32 contracts of 12 subprojects were awarded as of 31 August 2017. Number of CW contracts for additional subprojects have not been identified yet.

National competitive bidding will be the procurement method used for the civil work contracts.

Responsible ADB Officer Ho, Phong Le
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Ministry of Agriculture and Rural Development
[email protected]
Room 305 Building A15
10 Nugen Cong Hoan Street
Ba Dinh District, Hanoi, Vietnam
Timetable
Concept Clearance 02 Dec 2011
Fact Finding 14 Jan 2013 to 01 Feb 2013
MRM 17 Apr 2013
Approval 25 Sep 2013
Last Review Mission -
Last PDS Update 20 Sep 2017

Loan 3032-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Sep 2013 16 Oct 2013 17 Jan 2014 30 Jun 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 87.58 Cumulative Contract Awards
ADB 80.00 25 Sep 2013 43.75 0.00 58%
Counterpart 7.58 Cumulative Disbursements
Cofinancing 0.00 25 Sep 2013 12.67 0.00 17%

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.

Title Document Type Document Date
Productive Rural Infrastructure Sector Project in the Central Highlands: Environmental Monitoring Report (January-June 2017) Environmental and Social Monitoring Reports Sep 2017
Productive Rural Infrastructure Sector Project in the Central Highlands: Social Monitoring Report Environmental and Social Monitoring Reports Jul 2017
Productive Rural Infrastructure Sector Project in the Central Highlands: A Dok Commune and Dak Doa Town Subproject Initial Environmental Examination Initial Environmental Examination Dec 2016
Productive Rural Infrastructure Sector Project in the Central Highlands: Lac Xuan and Tu Tra Communes Subproject Initial Environmental Examination Initial Environmental Examination Dec 2016
Productive Rural Infrastructure Sector Project in the Central Highlands: Ea Sup Irrigation System Subproject Initial Environmental Examination Initial Environmental Examination Dec 2016
Productive Rural Infrastructure Sector Project in the Central Highlands: Cu Jut District, Dak Nong Province Irrigation Subproject Resettlement and Ethnic Minorities Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Dec 2016
Productive Rural Infrastructure Sector Project in the Central Highlands: Ia M’La Irrigation System Upgrade Initial Environmental Examination Initial Environmental Examination Dec 2016
Productive Rural Infrastructure Sector Project in the Central Highlands - Krong No District Irrigation, Dak Nong Province: Initial Environmental Examination Initial Environmental Examination Nov 2016
Productive Rural Infrastructure Sector Project in the Central Highlands: Social Monitoring Report Social Monitoring Reports Sep 2016
Productive Rural Infrastructure Sector Project in the Central Highlands: Ea Kao Main Canal System, Buon Ma Thuot City, Dak Lak Resettlement and Ethnic Minorities Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Aug 2016
Productive Rural Infrastructure Sector Project in the Central Highlands - Di Linh District, Lam Dong Province: Initial Environmental Examination Initial Environmental Examination Jul 2016
Productive Rural Infrastructure Sector Project in the Central Highlands - Krong Nang District, Dak Lak Province: Initial Environmental Examination Initial Environmental Examination Jun 2016
Productive Rural Infrastructure Sector Project in the Central Highlands: Dak Doa District, Gia Lai Province Subproject Resettlement and Ethnic Minorities Development Plan Combined Resettlement Plan and Indigenous Peoples Plans May 2016
Productive Rural Infrastructure Sector Project in the Central Highlands: Cu Jut Irrigation Initial Environmental Examination Initial Environmental Examination Mar 2016
Productive Rural Infrastructure Sector Project in the Central Highlands: Krong Nang District, Dak Lak Province Subproject Resettlement Plan Resettlement Plans Feb 2016
Productive Rural Infrastructure Sector Project in the Central Highlands: Chu Pah District, Gia Lai Province Subproject Resettlement and Ethnic Minorities Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Feb 2016
Productive Rural Infrastructure Sector Project in the Central Highlands: Kon Tum Province Subproject Combined Resettlement and Ethnic Minorities Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Jan 2016
Productive Rural Infrastructure Development Project in the Central Highlands: Repairing, Upgrading Dak Dam Irrigation System and Rural Infrastructure In Kon Vang, Kon Ray District, Kon Tum Province - Initial Environmental Examination Initial Environmental Examination Nov 2015
Productive Rural Infrastructure Sector Project in the Central Highlands: Combined Resettlement and Ethnic Minority Planning Framework Combined Resettlement Framework and Indigenous Peoples Planning Frameworks Sep 2015
Productive Rural Infrastructure Sector Project in the Central Highlands Resettlement Frameworks Aug 2013
Productive Rural Infrastructure Development Project in the Central Highlands Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Apr 2013
Productive Rural Infrastructure Development Project in the Central Highlands Environmental Assessment and Review Framework Apr 2013
Productive Rural Infrastructure Sector Project in the Central Highlands - Dak Lak: Initial Environmental Examination Initial Environmental Examination Dec 2012
Productive Rural Infrastructure Sector Project in the Central Highlands - Gia Lai: Initial Environmental Examination Initial Environmental Examination Dec 2012
Productive Rural Infrastructure Sector Project in the Central Highlands - Kon Tum: Initial Environmental Examination Initial Environmental Examination Dec 2012

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

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
DL02-XL03,LOT1: SECTION FROM K0 TO K10 000 WITH LENGTH OF 10KM Loan 3032 19 Jul 2017 VIET DUC ROAD-BRIDGE CONST. CO., LTD DAK LAK VIET NAM,SOC REP OF Ministry of Agriculture and Rural Development Construction 1033169 1032805
Construction of Dak Trit Flood Spillway and Upgrading Rural Road - Class A, Main Route Segment From K4 460,4?K4 749,2 (Segment Over Dam and Spillway) Loan 3032 08 May 2017 JV: Thanh Hoa - Nhat A Chau Thanh Hoa - Kon Tum, Viet Nam, Soc Rep of Ministry of Agriculture and Rural Development Construction 2614508 2614508
Dl03-Xl05: Repairing, Upgrading 8.41Km of Rural Road and the Related Facilities on the Road. Loan 3032 08 May 2017 JV: Dak Lak - Hong Ha - Viet Duc Dak Lak, Viet Nam, Soc Rep of Ministry of Agriculture and Rural Development Construction 1356241 1356241
DN01-Xl01, Lot 1:Repairing, Updgrading Dak Mam Irrigation Work, Nam Da Commune Loan 3032 03 May 2017 JV: Dak Lak - Thanh Cong - Phu Hien Vinh Dak Lak - Dak Nong, Viet Nam, Soc Rep of Ministry of Agriculture and Rural Development Construction 1606845 1606845
DN01-Xl01, Lot2:Repairing, Updgrading Dak Nang Irrigation Work, Dak Nang Commune Loan 3032 03 May 2017 JV: Dak Lak - Thanh Cong - Phu Hien Vinh Dak Lak - Dak Nong Viet Nam, Soc Rep of Ministry of Agriculture and Rural Development Construction 1358187 1358187
Stabilization of Daktrit Dam Slope, Ja Pen Regula Tion System, Ja Pen Irrigation and Drainage Canal Kon Trang Kla 1 and 2 Irrigation Canals, 1 and 2 Drainage Canals Loan 3032 17 Mar 2017 JV: Kim Nguyen Kt-No.6 Kt - Nguyen Binh Kon Tum Viet Nam Ministry of Agriculture and Rural Development Construction 811269.7 811269.7
KT01-Xl01, Lot 3: Route from K4 749.2 - K7 948.767 with Length of 3.199KM Loan 3032 10 Mar 2017 JV: Viet Truc - Sao Mai Gia Lai - Dak Lak Viet Nam Ministry of Agriculture and Rural Development Construction 403739.4 403739.4
KT01-Xl01, Lot 2: Main Route from K0 034.7 - K1 440. 8 and Connecting Lines N1, N1A, N1B, N2, N3 with Length of 5.148KM Loan 3032 10 Mar 2017 JV: Tan Hung - Nhat Quang Kon Tum - Gia Lai Viet Nam Ministry of Agriculture and Rural Development Construction 587141.73 587141.73
Kt01-Xl01, Lot 1: Main Route from K1 440.26 - K4 46 0.4 and Connecting Lines N4, N5, N6, N6A, N7 with Length of 6.032KM Loan 3032 10 Mar 2017 JV: Dong Anh - Nguyen Minh Kon Tum Kon Tum Viet Nam Ministry of Agriculture and Rural Development Construction 792233.17 792233.17
M&E Information Management System Loan 3032 27 Feb 2017 ADC Investment Technology Development JSC Hanoi, Viet Nam Ministry of Agriculture and Rural Development Consultancy 76691.5