Viet Nam: Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project - Tranche 1

Sovereign Project | 41414-043 Status: Active

Summary

ADB is financing preparations for a 57.1-kilometer expressway that will connect Ben Luc and Long Thanh in the southern region of Viet Nam. The expressway will be part of the Greater Mekong Subregion Southern Economic Corridor. It will help ease traffic congestion in Ho Chi Minh City, improve transport efficiency, and boost economic activities in the region.

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Consulting Notices See also: CMS

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Procurement Notices See also: Operational Procurement

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Procurement Documents


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Project Name Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project - Tranche 1
Project Number 41414-043
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2730-VIE: GMS Ben Luc-Long Thanh Expressway Project (MFF $650 m) - PFR 1
Ordinary capital resources US$ 350.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description

The Project will construct a 57.1 kilometer (km) expressway between Ben Luc and Long Thah in the south of Ho Chi Minh City (HCMC), which is a short link of the GMS Southern Economic Corridor (SEC). The Project Expressway is divided into a western section (0.6 km-20.4 km), a middle section (20.4 km-31.4 km), and an eastern section (31.4 km-57.7 km).

Scope for this first tranche includes (i) land acquisition and resettlement for the entire Expressway, (ii) unexploded ordnance clearance works for the entire Expressway, (iii) civil works for the western section of the Expressway, (iv) VEC's laboratory (building and equipment), (v) project supervision consulting services for the expressway sections to be financed by ADB, external environmental monitoring, external resettlement monitoring, and external auditing consulting services for the Project, and (vi) VEC's incremental administration cost.

Project Rationale and Linkage to Country/Regional Strategy

In the south of HCMC, east west traffic is restricted due to the lack of river crossing facilities, forcing vehicles into the center of HCMC. A substantial shift has occurred from motorcycles to passenger cars in the project area, further exacerbating traffic congestion. Construction of HCMC ring roads to establish connectivity with neighboring cities through expressway links is a high priority of the government. In this regard, the project will facilitate east west traffic south of HCMC, thereby diverting through-traffic and reducing traffic congestion in the center of HCMC. Through construction of the project expressway, the connectivity of cities and towns around HCMC will also be improved, and transport costs and travel times for the movement of passengers and goods in and around HCMC will be reduced. Moreover, the project expressway is identified as a part of the national north south expressway that links into the Mekong Delta, which is the rice basket of Asia. It will be used as a freight route to transport food produced in the Mekong Delta to the rest of the country and overseas via land and maritime transport.

Furthermore, the project will strengthen subregional connectivity and international trade with the neighboring country of Cambodia. Under the Cross-Border Transport Agreement between Viet Nam and Cambodia, Viet Nam agreed to accept entry of 150 Cambodian commercial vehicles into Viet Nam, and vice-versa. For commercial vehicles in Cambodia, improved access to ports in HCMC will reduce freight cost and travel time, especially for cargoes to and from the People's Republic of China, Japan, and the United States. The transport of goods between Cambodia and HCMC through the GMS SEC is constrained by the absence of a Mekong River bridge at Neak Laong in Cambodia, as well as the heavy traffic congestion around HCMC. The Japan International Cooperation Agency (JICA) is implementing the Mekong River bridge project at Neak Laong, and the project expressway will provide an express route to and from the ports in HCMC. Therefore, the project expressway, coupled with the JICA-financed bridge project, is expected to improve transport efficiency in the GMS SEC and expand international trade between the two countries.

ADB's country strategy and program (CSP) 2007- 2010 for Viet Nam aims to help the Government of Viet Nam reduce poverty, in accordance with the government's socioeconomic development plan, through (i) pro-poor business-led economic growth, (ii) social equity and balanced development, and (iii) environmental protection and management. The CSP promotes good governance and places a high priority on contributing to regional cooperation. In light of the expected strong expansion of the Vietnamese economy, the CSP recognizes the need for accelerated improvements in infrastructure, particularly transportation and energy, and in human resource development.

Impact Increased competitiveness of the regional economy along the Southern Economic Corridor in southern Viet Nam and the GMS countries.

Project Outcome

Description of Outcome A more efficient and safer movement of goods and people in the greater HCMC area
Progress Toward Outcome Civil works construction is ongoing for the western (ADB-funded under Tranche 1) and middle (JICA-funded) sections of the Ben Luc - Long Thanh Expressway Project. Funding for the eastern section has recently been approved by ADB (Tranche 2) in May 2016. Procurement is ongoing for the 3 civil works contracts under Tranche 2.
Implementation Progress
Description of Project Outputs The western section (19.8 km) of Ben Luc-Long Thanh Expressway is constructed.
Status of Implementation Progress (Outputs, Activities, and Issues) All procurement for 5 civil works and recruitment for 3 consulting services under this loan (Tranche 1) have been completed. Project supervision consultant has been mobilized and civil works construction of the western section are ongoing. Completion of the western section is expected in early 2019.
Geographical Location Southern Viet Nam

Safeguard Categories

Environment A
Involuntary Resettlement A
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The project''s safeguard categorization is A for environment. The environmental impact assessment (EIA) which covers all sections of the project expressway, was prepared at the time of MFF processing to meet the requirements of ADB's Safeguard Policy Statement (2009) and cleared by ADB in 2010. The Safeguard Policy Statement applies to all sections, including that funded by JICA. The government and VEC assure compliance with the EIA. The EIA (i) covers all sections of the expressway; (ii) describes the environmental baseline conditions in the project area; and (iii) provides a comprehensive assessment of potential physical, biological, and socioeconomic impacts resulting from the construction and operation of the project. The environmental management plan (EMP) in the EIA specifies various mitigation and pollution control measures to minimize the anticipated negative impacts of project implementation. The EMP's environmental monitoring plan covers the preconstruction, construction, and operation of the project. VEC ensures compliance with the EMP by both ADB and JICA-funded contractors. Based on the loan agreement, VEC, with assistance from the project supervision consultant, undertakes monthly monitoring of the contractors' environmental performance and compiles the results in quarterly environmental monitoring reports submitted to ADB. Such monitoring will be carried out throughout construction and during the first year of project operation. The external environmental monitoring consultant will submit the corresponding external monitoring reports simultaneously to ADB and VEC.
Involuntary Resettlement The project''s safeguard categorization is A for involuntary resettlement. The resettlement plan, cleared by ADB in 2010, covers all sections of the project expressway. District-specific plans for all project-affected areas were updated based on the final project design and detailed measurement survey results, and accepted by ADB. The implementation of the updated plans is progressing well and assessed as being in compliance. In all, 3,520 households with 13,755 persons are economically and physically affected, of which 1,520 households will lose 10% or more of their productive resources, and 913 households will be physically displaced. Resettlement and relocation are progressing well and are almost completed in the western and middle sections. LAR has started in the eastern section. While resettlement sites have been prepared for most locations, the vast majority of relocating households preferred to purchase replacement land themselves and self-relocate. The income restoration program is also progressing well. Program steering committees were established in all districts, and implementation has begun in all districts of HCMC and Long An Province.
Indigenous Peoples The project''s safeguard categorization is C for indigenous peoples. The Tay and Chinese households that will be affected by the project are well integrated into the wider socioeconomic and cultural community.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were carried out during the preparation of resettlement plan and conduct of social impact assessment. Focus group discussions and separate meetings with women and other vulnerable groups were undertaken during technical assistance implementation.
During Project Implementation Affected persons were widely informed about income restoration and consulted on their preferences. A large proportion of eligible affected persons have registered for various activities, of which those related to farming prove most popular. Consultations and information disclosure during resettlement implementation is satisfactory. The practice of affected persons retaining a copy of their compensation assessment and decision for later reference has been applied consistently and is commended. The grievance redress mechanism is observed to be accessible and functioning well.

Business Opportunities

Consulting Services All consulting services to be financed out of the proceeds of the Loan shall be subject to and governed by ADB's Guidelines on the Use of Consultants (March 2013, as amended from time to time). All consultant recruitment have been completed under Tranche 1.
Procurement All works to be financed out of the proceeds of the Loan shall be subject to and governed by ADB's Procurement Guidelines (March 2013, as amended from time to time). All procurement under Tranche 1 have been completed.

Responsible Staff

Responsible ADB Officer Lisack, Valerie
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Vietnam Expressway Corporation
Hamlet 2, Linh Nam Ward
Hoang Mai District, Hanoi

Timetable

Concept Clearance 02 Mar 2010
Fact Finding 07 Jun 2010 to 22 Jun 2010
MRM 16 Aug 2010
Approval 22 Dec 2010
Last Review Mission -
Last PDS Update 29 Sep 2016

Loan 2730-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Dec 2010 05 May 2011 01 Dec 2011 31 Dec 2017 30 Jun 2019 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 350.00 Cumulative Contract Awards
ADB 350.00 22 Dec 2010 240.84 0.00 69%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 22 Dec 2010 59.66 0.00 17%

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
GMS Ben Luc-Long Thanh Expressway Project - Tranche 1: Resettlement and Income Restoration Action Plan Monitoring Report (October-December 2015) Social Monitoring Reports Apr 2016
Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project - Tranche 1: Environmental Monitoring Report (October-December 2015) Environmental Monitoring Reports Feb 2016
Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project - Tranche 1: Environmental Monitoring Report (June-August 2015) Environmental Monitoring Reports Dec 2015
GMS Ben Luc-Long Thanh Expressway Project - Tranche 1: Due Diligence Report for Resettlement, Compensation, and Assistance Safeguards Due Diligence Reports Apr 2015
GMS Ben Luc-Long Thanh Expressway Project - Tranche 1: Resettlement Monitoring Report (February 2015) Social Monitoring Reports Feb 2015
Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project - Tranche 1: Long Thanh District Resettlement Plan Resettlement Plans Sep 2014
Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project - Tranche 1: Nhon Trach District District Resettlement Plans Aug 2014
GMS Ben Luc-Long Thanh Expressway Project - Tranche 1: Resettlement Monitoring Report (July 2014) Social Monitoring Reports Jul 2014
Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project - Tranche 1: Binh Chanh District Resettlement Plans May 2014
Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project - Tranche 1: Nha Be District Resettlement Plan Resettlement Plans Apr 2014
Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project - Tranche 1: Can Gio District Resettlement Plan Resettlement Plans Mar 2014
Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project - Tranche 1: Can Giuoc District Resettlement Plan Resettlement Plans Nov 2013
Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project - Tranche 1: External Resettlement Monitoring (Inception Report) Social Monitoring Reports May 2013
Greater Mekong Subregion Ben Luc-Long Thanh Expressway Project - Tranche 1: Updated Resettlement Plan Resettlement Plans Apr 2013

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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