Viet Nam: Greater Mekong Subregion Ben Luc–Long Thanh Expressway Project – Tranche 2

Sovereign Project | 41414-063 Status: Approved

Summary

The Project constructs a 57.1 km expressway between Ben Luc and Long Thanh in the south of Ho Chi Minh City (HCMC), which is a short link of the Greater Mekong Subregion (GMS) Southern Economic Corridor. The project expressway is divided into a western section (21.14 km), a middle section (10.71 km), and an eastern section (25.25 km). For the expressway construction, ADB finances the western and eastern sections, and Japan International Cooperation Agency (JICA) finances the middle section. The project was estimated to cost $1.608 billion at appraisal, inclusive of local taxes, contingencies, and financing charges during development. Tranche 2 in the amount of $286 million will cover construction of the eastern section of the expressway.

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Project Name Greater Mekong Subregion Ben Luc–Long Thanh Expressway Project – Tranche 2
Project Number 41414-063
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3391-VIE: Greater Mekong Subregion Ben Luc Long Thanh Expressway Project Tranche 2
Ordinary capital resources US$ 286.00 million
Loan: GMS Ben Luc-Long Thanh Expressway - PFR 2
Japan International Cooperation Agency US$ 305.52 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Transport - Urban roads and traffic management

Gender Equity and Mainstreaming No gender elements
Description The Project constructs a 57.1 km expressway between Ben Luc and Long Thanh in the south of Ho Chi Minh City (HCMC), which is a short link of the Greater Mekong Subregion (GMS) Southern Economic Corridor. The project expressway is divided into a western section (21.14 km), a middle section (10.71 km), and an eastern section (25.25 km). For the expressway construction, ADB finances the western and eastern sections, and Japan International Cooperation Agency (JICA) finances the middle section. The project was estimated to cost $1.608 billion at appraisal, inclusive of local taxes, contingencies, and financing charges during development. Tranche 2 in the amount of $286 million will cover construction of the eastern section of the expressway.
Project Rationale and Linkage to Country/Regional Strategy In the south of Ho Chi Minh City (HCMC), the 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 part of national north-sough expressway that links into the Mekong Delta, which is the rive basket of Asia. It will be used as a freight route to transport food produced from the Mekong Delta to the rest of the country and overseas via land and maritime transport.
Impact increased competitiveness of regional economy along GMS Southern Economic Corridor in the 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
Implementation Progress
Description of Project Outputs The project will increase the density of the HCMC road network, enhance connectivity between the eastern and western regions of HCMC, and improve the project management and financial management capacity of Vietnam Expressway Corporation (VEC). Under Tranche 2, the eastern section of the project expressway will be built. The entire expressway is expected to be completed in the middle of 2019, with operation scheduled for 2020.
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location

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
During Project Implementation VEC will publicly disclose on its website information on how loan proceeds are being used, presenting (i) procurement contract awards, including for each contract (a) list of participating bidders, (b) name of the winning bidder, (c) basic details on bidding procedures adopted, (d) amount of contract awarded, (e) list of goods and/or services purchased, (f) intended and actual utilization of loan proceeds under each contract; and (ii) internal and external resettlement reports. The website will be updated within 2 weeks from (i) each contract award, (ii) each submission of environmental and resettlement reports to be prepared by external monitoring agencies, and (iii) each submission of VEC's internal quarterly environment and resettlement reports.

Business Opportunities

Consulting Services All consulting services to be financed out of the proceeds of the Loan (Tranche 2) will be subject to and governed by ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement All works to be financed out of the proceeds of the Loan (Tranche 2) will be subject to and governed by ADB's Procurement Guidelines (2015, as amended from time to time). Procurement is ongoing for all 3 civil works under Tranche 2.

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 -
Fact Finding -
MRM 16 Sep 2015
Approval 20 May 2016
Last Review Mission -
Last PDS Update 29 Sep 2016

Loan 3391-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 May 2016 - - 30 Jun 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 334.30 Cumulative Contract Awards
ADB 286.00 20 May 2016 0.00 0.00 0%
Counterpart 48.30 Cumulative Disbursements
Cofinancing 0.00 20 May 2016 0.00 0.00 0%

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

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Related Publications

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