Viet Nam: Loan 2754-Water Sector Investment Program - Tranche 1

Sovereign (Public) Project | 41456-023 Status: Active

ADB is helping water supply companies in Viet Nam to strengthen business practices and improve performance. The mutlitranche financing facility will increase access to clean water by supporting a capital investment program in water companies and cofinancing the National Nonrevenue Water Program. The first tranche will cover Ho Chi Minh City.

Project Details

Project Officer
van Klaveren, Paulus B. Southeast Asia Department Request for information
  • Viet Nam
  • Water and other urban infrastructure and services
Project Name Loan 2754-Water Sector Investment Program - Tranche 1
Project Number 41456-023
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2754-VIE: Viet Nam Water Supply Sector Investment Program PFR 1, $138 m
Ordinary capital resources US$ 138.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Water and other urban infrastructure and services - Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The investment program will help water supply companies in Viet Nam to improve their perfomance/ It will support capital investment in water companies and cofinance the National Nonrevenue Water (NRW) Program. The Program will utilize an MFF to provide longer-term support for institutional reform in Viet Namwater sector until 2020. The MFF will be used as seed money to leverage parallel cofinancing and, importantly, gain access to commercial finance and increased private sector participation.
Project Rationale and Linkage to Country/Regional Strategy The ADB water and sanitation sector assessment strategy and road map shows that Viet nam's water sector has significantly improved coverage since 1995. However, significant gaps remain in the wuality and reliability of service. Areas requiring water companies' attemtion are (i) financial sustainability; (ii) efficiency and accountability of decentralized institutions; and ( (iii) data on utility assests and performance. The proposed program will address those areas.
Impact The impact will be the sustainable provision of safe water in Viet Nam.
Project Outcome
Description of Outcome Efficiency of water supply companies improved.
Progress Toward Outcome jjjj
Implementation Progress
Description of Project Outputs

Increased coverage.

Improved business planing and asset and financial management.

Effective NRW reduction.

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

All service contracts have been awarded

Works contracts on improving water supply distribution systems are completed

ICT contract is on-going

The re-bidding of the main water supply works contract is on-going. The contract is expected to be awarded by mid-2017.

All works will be completed before the extended loan closing date of 31 December 2020.

Geographical Location Ho Chi Minh City
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

Environmental Management Plan to be included into Civil Works bidding documents for compliance by the selected contractor

Preparation of cofinancing for sludge treatment at the water treatment plants of Thu Duc and Tan Hiep

Involuntary Resettlement Todate, no ressettlement is anticipated. Compensation of temporary disturbances during construction is provided.
Indigenous Peoples Not Applicable
Stakeholder Communication, Participation, and Consultation
During Project Design Four stakeholders workshops were implemented during the course of the project preparation.
During Project Implementation Procurement plan was approved and revised in January 2013 after consultation with the various agencies of Ho Chi Minh City Peoples Committee
Responsible ADB Officer van Klaveren, Paulus B.
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Saigon Water Corporation
#1 Cong Truong Quoc Te
District 3, Ho Chi Minh City
Concept Clearance 23 Sep 2010
Fact Finding 06 Sep 2010 to 14 Sep 2010
MRM 01 Oct 2010
Approval 07 Jun 2011
Last Review Mission -
PDS Creation Date 29 Oct 2010
Last PDS Update 29 Mar 2017

Loan 2754-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Jun 2011 08 Jun 2011 24 May 2012 30 Jun 2016 31 Dec 2020 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 138.00 Cumulative Contract Awards
ADB 138.00 07 Jun 2011 98.34 0.00 71%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 07 Jun 2011 16.11 0.00 12%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Evaluation Documents See also: Independent Evaluation

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