Viet Nam: Strengthening Institutional and Financial Arrangements, Operation and Maintenance, and Governance in Road Transport

Sovereign Project | 41443-012 Status: Closed



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Project Name Strengthening Institutional and Financial Arrangements, Operation and Maintenance, and Governance in Road Transport
Project Number 41443-012
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7611-VIE: Strengthening Institutional and Financial Arrangements, Operation and Maintenance, and Governance in Road Transport
Japan Fund for Poverty Reduction US$ 1.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Public sector management - Economic affairs management

Transport - Rail transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description TBD
Project Rationale and Linkage to Country/Regional Strategy

ADB's country strategy and program for Viet Nam, 2007?2010 and its midterm review identified inefficient management as a key issue in the transport sector. The timing of the TA is important because (i) the road subsector of MOT is being reorganized, with the establishment of the Directorate for Roads of Vietnam (DRVN) and the Vietnam Expressway Management Administration (VEMA); (ii) a road maintenance fund under preparation; (iii) government subsidies for expressways under consideration; and (iv) development partners funding TA projects that will supplement and add value to this TA.

The sector assistance program evaluation for the transport sector in Viet Nam recommended (i) developing a governance plan to address comprehensively the institution-building and organizational changes required to mitigate the risks of the current institutional arrangements; (ii) considering the provision of real-time advisory support to the government for new areas of intervention, such as private sector participation in investments; (iii) improving the sustainability of projects by gaining government commitment to fund maintenance in close cooperation with other development partners; (iv) reviewing bidding arrangements to ensure that underbidding does not adversely affect project performance and that transparency is maintained in contracts with equitized state-owned enterprises (SOEs); and (v) enhancing design flexibility.

Impact MOT and its line agencies will be transformed to streamlined and efficient organization. Optimal and sustainable resource will be allocated to road development, maintenance and operation.

Project Outcome

Description of Outcome Road maps, guidelines, and assessments on key issues in the road transport subsector are submitted and reviewed by the appropriate authority within MOT and its line agencies.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

(i) Road map for institutional and financial enhancement of MOT and its line agencies and (ii) assessment of financial arrangements including PPP

Modified road design guidelines developed to minimize life-cycle costs

Guidelines for procurement involving SOEs under MOT regarding their participation in bidding for ADB-financed projects

Status of Implementation Progress (Outputs, Activities, and Issues) Guidelines are discussed in working groups formed by the MOT. Interim Report Seminar was held on 18 October 2011 in Ha Noi. Draft final report was submitted in December 2011.
Geographical Location Viet Nam

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Inception Report Workshop was held on 1 July 2011 in Ha Noi. About 50 participants from the Government, development partners and other stakeholders attended.

Interim Report Seminar was held on 18 October 2011 in Ha Noi. About 70 stakeholders attended the seminar.

Business Opportunities

Consulting Services A consulting firm and an individual consultant will be recruited. The firm's consulting team will comprise four international experts - a road transport specialist and team leader (9 person-months), public enterprise reform specialist (3 pm), public financial management specialist (4 pm), and procurement specialist (2 pm) - and six national expets (231 pm). The individual consultant, a road transport specialist (10 pm) will be stationed in the Ministry of Transport Office and provide hands-on advisory suppor to MOT senior staff on improving the efficiency of the DRVN and VEMA and act as a conduit between MOT and the firm's consulting team.

Responsible Staff

Responsible ADB Officer Alam, Munawar
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Ministry of Transport
80 Tran Hung Dao
Hanoi, Viet Nam


Concept Clearance 04 Mar 2010
Fact Finding 08 Mar 2010 to 11 Mar 2010
Approval 24 Sep 2010
Last Review Mission -
PDS Creation Date 17 Apr 2009
Last PDS Update 25 Jan 2012

TA 7611-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Sep 2010 28 Mar 2011 28 Mar 2011 31 Aug 2011 31 Aug 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 1,000,000.00 150,000.00 0.00 0.00 0.00 1,150,000.00 24 Sep 2010 783,680.92

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

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