Viet Nam : Emergency Rehabilitation of Calamity Damage Project

Agriculture, natural resources and rural development / Irrigation - Rural flood protection - Rural market infrastructure - Rural water supply services

Education / Education sector development

Transport / Road transport (non-urban)

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ADB's current country strategy and program for Viet Nam provides an enabling framework to respond to natural disaters. ADB therefore agreed to assist the Government to reinstate essential rural infrastructure damanged by typhoons and storms in 2005.

1. Essential infrastructure (roads, flood protection, irrigation systems, and social infrastructure) reinstated

2. Equivalent or enhanced storm and flood protection provided to vulnerable areas

Project Implementation Progress:

1. (i) implementation progress of 64 subprojects was on track. However, implementation of the other 6 subprojects in Ha Giang, Ha Tinh, Nam Dinh, Nghe An, Quang Binh and Phu Yen, was delayed further from 1 to 4 months in comparison with the implementation plans updated by the last review mission in October 2010; (ii) 45 subprojects were fully completed; (iii) the remaining 25 subprojects are expected to be fully completed by the end of July 2011.

The main reasons of the delays of six subprojects were (i) floods of 2010; (ii) design changes of two subprojects in Nam Dinh and Phu Yen provinces; and (iii) weak capacity of contractor of a subproject in Ha Giang Province. These issues were already overcome by the concerned PPMUs and provincial authorities.

2. (i) total ADB loan amount has been committed; and (ii) at completion, the total project cost is estimated at about $94.4 million (105% of the original cost estimate) including $79.92 million (84.7%) of ADB loan and $14.48 million equivalent (15.3%) of the counterpart funds.

Issues:

1. Delays in processing civil works contract variations. There are number of civil works contracts, which should be adjusted due to increase of costs of construction materials and labor. However, many PPMUs have not processed these contract variations yet. The Mission requested these PPMUs to process them immediately according to the guidelines of the Ministry of Construction.

2. Delays in procurement of additional works. Procurements of additional works in Ha Giang, Thanh Hoa and Yen Bai provinces have not finalized yet due to the lengthy provincial procedures. As physical completion date of the Project is 30 June 2011, the Mission requested that the civil work contracts of the additional works should be awarded by 15 March 2011.

3. Design change. Change of technical design for the Lien Hop Spillway and Thuong Binh Road Subproject of Ha Giang Province is required to improve its sustainability and effectiveness and this change will delay subproject completion until the end of July 2011.

Follow-up actions:

1. PPCs of Ha Giang, Nam Dinh, Nghe An, Phu Tho, Phu Yen, Quang Binh, Quang Tri and Thanh Hoa provinces should provide adequate counterpart funds for their subprojects according to Attachment 2 before 31 March 2011, otherwise their proposals for new subprojects of Loan 2357 (Integrated Rural Development Sector Project in the Central Provinces) and Loans 2682-2683 (Sustainable Rural Infrastructure Development in Northern Mountain Provinces), and their participation in other future ADB financed projects will not be approved by ADB;

2. PPCs should provide adequate O&M funds for the completed subprojects;

3. Ha Giang, Thanh Hoa and Yen Bai PPMUs should finalize immediately the procurement of additional works;

4. Ha Giang PPMU should process immediately the change of technical design for the Lien Hop Spillway and Thuong Binh Road Subproject;

5. PPMUs should process immediately the pending payments for the completed subprojects; and

6. PPMUs should process immediately the pending civil works contract variations required by the increase of construction materials and labor costs according to the guidelines of the Ministry of Construction;