Regional : VIE: Second Northern GMS Transport Network Improvement

Project Name

VIE: Second Northern GMS Transport Network Improvement

Project Number

41444-013

Country / Economy

• Regional
• Lao People's Democratic Republic
• Viet Nam

Project Status

Closed

Project Type / Modality of Assistance

• Grant
• Loan

Source of Funding / Amount

Grant 0234-REG: LAO: Second Northern GMS Transport Network Improvement

Source	Amount
Asian Development Fund	US$ 20.00 million

Loan 2703-REG: VIE: Second Northern GMS Transport Network Improvement

Source	Amount
Asian Development Fund	US$ 75.00 million

Loan 8255-REG: LAO: Second Northern GMS Transport Network Improvement

Source	Amount
OPEC Fund for International Development	US$ 12.00 million

Loan 8310-REG: LAO: Second Northern GMS Transport Network Improvement Project

Source	Amount
OPEC Fund for International Development	US$ 9.00 million

Loan 3317-REG: Second Northern Greater Mekong Subregion Transport Network Improvement Project - Additional Financing

Source	Amount
Asian Development Fund	US$ 71.13 million

Strategic Agendas

• Inclusive economic growth
• Regional integration

Drivers of Change

• Gender Equity and Mainstreaming

Sector / Subsector

• Transport / Road transport (non-urban)

Gender

Effective gender mainstreaming

Description

The GMS Northeastern Corridor (stretching from Thanh Hoa in northern Viet Nam through northern Lao PDR to Bangkok) is one of the corridors identified in the transport sector

strategy study and links northeastern Lao PDR with northern Viet Nam and its seaports. Many of the corridor roads between Thanh Hoa and Bangkok are in good condition. Others are now being improved, including a 367-kilometer (km) stretch of Route 4 in the Lao PDR from the Louangphrabang area to the Lao PDRThailand border that is being upgraded under ADB's Northern GMS Transport Network Improvement Project, approved in 2007. The section of the corridor between the coast through the provinces of Thanh Hoa in northern Viet Nam and Houaphanh in northeastern Lao PDR, however, needs to be improved to a higher, all-weather, international standard if the Northeastern Corridor is to deliver its full potential increase in traffic, trade, and economic development and give the northern region of the Lao PDR valuable yearround access to rapidly developing ports on the South China Sea. The proposed project will fill this key gap. It was accorded priority in the GMS transport sector study and is strongly supported by the governments of the Lao PDR and Viet Nam, which believe it will strengthen the economies of both countries and help reduce current high poverty rates in the project provinces on both sides of their border. The project is included in the GMS regional cooperation business plan for 20102012.

Road maintenance and vehicle overloading are key issues affecting the sustainability of road projects in Viet Nam and the Lao PDR. Both governments have agreed to maintain the

project roads to the national standard. In Lao PDR, this will be done through the use of performance-based maintenance contracts. In Viet Nam, performance-based maintenance

contracts will also be used for the project road, subject to the successful outcome of ongoing pilot tests of these contracts. MOT will develop a program to control vehicle overloading of vehicles on the project road in Viet Nam. To address vehicle overloading in the Lao PDR, scales for weighing vehicles will be procured under the project, and checkpoints to control the overloading of vehicles will be established along the project roads.

Project Rationale and Linkage to Country/Regional Strategy

The poor state of such basic infrastructure as roads is a major obstacle to building subregional economic cooperation among the six countries that border the Mekong River.

Under the GMS program, which it helped establish in 1992, ADB has supported the creation of strategic transport and economic corridors linking Cambodia, the People's Republic of China, the Lao PDR, Myanmar, Thailand, and Viet Nam. After a summit of GMS leaders in July 2005 highlighted the key role of comprehensive, efficient cross-border transport in promoting trade, investment, resource development and sharing, and the free movement of goods and people between their countries, ADB provided technical assistance to prepare the GMS transport sector strategy study. The study recommended the establishment of a seamless, well-built, multimodal subregional transport network to fully connect the GMS. The sector strategy's objectives were to complete the transport corridors; coordinate GMS country efforts to develop these transport routes into economic corridors of agricultural diversification, industrialization, and employment creation; reduce nonphysical barriers to the movement of people, goods, and services within the subregion; and accelerate the implementation of such arrangements as the GMS cross-border transport agreement.

The GMS cross-border transport agreement was incorporated in the GMS program in 1999 to support trade facilitation. The agreement covers various aspects of cross-border

transport facilitation in the GMS. All the GMS countries have finalized and signed all annexes and protocols in the agreement, and most countries have ratified all of the annexes and

protocols. The agreement is already under initial implementation at three border crossing points along the Lao PDRViet Nam, ThailandLao PDR, and PRCViet Nam borders. Agreements have been signed on additional border crossings for implementation along the PRCLao PDR and CambodiaViet Nam borders.

Impact

Increased international trade on the GMS Northeastern Corridor.

Project Outcome

Description of Outcome

Efficient transport across the Lao PDR-Viet Nam border and on the project road sections of the GMS Northeastern Corridor

Progress Toward Outcome

VIE: The entire road section was opened to public in June 2016. However, in June 2018, ADB approved the extension of the loan closing date until 31 December 2018 to cover implementation of additional and emergency rehabilitation works.

LAO: Construction of the entire road section is undergoing, and anticipate to be opened to public by June 2020.

Implementation Progress

Description of Project Outputs

The project components of the GMS Northeastern Corridor in Viet Nam and the Lao PDR are improved

Road safety on the project road sections of Northeastern Corridor is improved

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

VIE: As end of Q3/2018, all civil works and consulting services contracts under additional and emergency rehabilitation works are signed and expected to complete by the revised project loan closing date of 31 December 2018.

LAO: construction of roads section in LAO part is being constructed: NR6A/B and Nam Ma bridge (connecting Viengxai to border Hang Long) is expecting to finish by 31. While section NR6-1 (Viengxai - border Nam Soi) is complete about 20% and this expects to complete in 30 June 2020. - it anticipates that the entire road will be opened to public in June 2020.

LAO: government is requesting ADB to extend the closing date (24 months) to allow consultants engaged under ADB grant 0234 to work on section NR6-1, and processing of the additional financing.

Geographical Location

Viet Nam - Huyen Cam Thuy, Huyen Hoang Hoa, Huyen Mai Chau, Huyen Song Ma, Na Meo, Pa Hang, Thanh Hoa, Thi Tran Cam Thuy

Safeguard Categories

Environment

B

Involuntary Resettlement

A

Indigenous Peoples

B

Summary of Environmental and Social Aspects

Environmental Aspects

Based on the initial environmental examination (IEE) reports prepared for the Lao PDR and Viet Nam components the project is not expected to have significant environmental impacts. None of the project roads traverses buffer or core zones of ecologically or culturally protected areas. The adverse environmental impacts will come largely during construction from dust and noise, surface run-off, erosion, traffic and utility disruptions, potential occupational and community health and safety risks, and disposal of excavated materials. Environmental management plans (EMPs) detailing mitigation measures and monitoring activities have been prepared as part of the IEEs to avoid or reduce anticipated negative project impacts. These plans also require the design and supervision consultant (DSC) to draft site-specific EMPs (SEMP) or method statements during the detailed design phase. The SEMP will include the following subplans: (i) waste management and spoil disposal plan, (ii) materials management plan, (iii) drainage management plan, (iv) erosion control plan, (v) temporary transport management plan, (vi) utilities and irrigation reprovisioning plan, (vii) noise and dust control plan, and (viii) workers and public safety plan. The contractor will be required to update these EMPs before work begins at the sites.

Involuntary Resettlement

There are about 8,913 households (35,652 people) in Viet Nam and about 147 households in the Lao PDR which will lose a small portion of land. Only 6 households will require relocation in the Lao PDR and no relocation will be necessary in Viet Nam. The Resettlement Plans have been endorsed and disclosed by MOT in Viet Nam and MPWT in the Lao PDR.

Indigenous Peoples

The ethnic minority populations of the districts closest to Thanh Hoa City are very small, but ethnic minorities comprise almost the entire population of the two project area districts In Viet Nam closest to the Lao PDR border. The same is true of the two project area districts on the Lao PDR side of the border. The ethnic communities in the Lao PDR have been living along the project road since the 1970s. The project will not (i) affect any customary rights to resources or land; (ii) negatively affect the socioeconomic status of the ethnic groups; (iii) reduce their cultural and community integrity; (iv) affect their health, education, livelihood, and/or social security status; or (v) alter or undermine the recognition of indigenous knowledge. Impacts on ethnic minorities will be addressed through the Resettlement Plans. The Resettlement and Ethnic Minorities Framework and Resettlement and Ethnic Communities Framework have been endorsed by the MOT in Viet Nam and the MPWT in the Lao PDR, respectively.

Stakeholder Communication, Participation, and Consultation

During Project Design

A series of meetings was held at the village and household level during preparation of a resettlement plan and a social impact assessment. Consultations were also held separately with women and other vulnerable groups.

During Project Implementation

During the project implementation, information sharing and consultations will be held with the concerned project stakeholders to ensure sustained support for the project throughout implementation stage.During mid term review, ADB and Government held consultation meeting with stakeholders of Cam Thuy and Ba Thuoc districts to hear their feedback on the implementation of the project and environmental and resttlement activities.

Business Opportunities

Consulting Services

VIE: Updated procurement plan was approved by ADB in July 2018. All contracts have been awarded

Procurement

VIE: Updated procurement plan was approved by ADB in July 2018. All civil works contracts have been awarded

Contact

Responsible ADB Officer

Nguyen, Khoa Dinh

Responsible ADB Department

Southeast Asia Department

Responsible ADB Division

Viet Nam Resident Mission (VRM)

Executing Agencies

Ministry of Transport

Timetable

Concept Clearance

23 Jul 2010

Fact Finding

20 Jul 2010 to 30 Jul 2010

MRM

21 Sep 2010

Approval

25 Nov 2010

Last Review Mission

-

PDS Creation Date

14 Oct 2009

Last PDS Update

20 Sep 2018

Funding

Grant 0234-REG

Loan 2703-REG

Loan 3317-REG

Loan 8255-REG

Loan 8310-REG