Viet Nam : Greater Mekong Subregion Southern Coastal Corridor Project - Additional Financing

Transport / Road transport (non-urban)

The current project was approved in November 2007 to construct sections of the GMS road corridor in the southern coastal areas of Cambodia and Viet Nam._The project preparatory technical assistance to prepare the project identified 51.5 kilometers (km) of roads in Cambodia and 218 km of roads in Viet Nam to be improved along the southern coastal corridor._As part of the Viet Nam portion of the project, the Asian Development Bank (ADB) approved a loan in the amount of SDR48,300,000 from its Special Funds resources and the administration of a $25.5 million grant from the Government of Australia through the Australian Agency for International Development (AusAID) to the Government of Viet Nam. In 2010, the Government of the Republic of Korea approved a parallel cofinancing loan through the ExportImport Bank of Korea of $50 million to improve about 96 km of the southern coastal corridor._In addition to the improvement of 218 km of roads, the project includes improvement of cross-border facilities, and an HIV/AIDS and human trafficking awareness and prevention program._

The ADB loan and AusAID grant for the Viet Nam project became effective on 29 May 2008 with a closing date of 30 June 2015. The project scope includes civil works, consulting services, resettlement, contingencies, and financing charges on ADB's loan. The project is performing well and is in an advanced stage of implementation. All contracts have been awarded and the project performance is on track at 60% of physical completion._Cumulative contract awards and disbursements based on net amounts as of 31 December 2012 are at 99% and 51%, respectively.

A midterm review mission (MTR) conducted jointly by ADB and AusAID in December 2011 assessed that project outputs were expected to be delivered as intended, and that the outcome would be achieved if proposed corrective measures were effectively implemented. These measures, as specified by the MTR, were to improve the soft-ground treatment design and construction methodology, resolve delays on resettlement implementation, and ensure compliance with the project's covenants on resettlement and environment. Since the MTR, the government has taken necessary corrective actions and revised technical designs for soft-ground treatment, updated all resettlement plans for implementation, which ADB has approved, resolved claims from affected people, and improved environmental oversight of construction sites. Output-related project risks are being effectively managed and assumptions remain valid._

Based on the findings of the MTR and the government's request, additional financing is required to achieve the project's intended outputs with greater technical quality, and to resolve delays on resettlement implementation. Additional financing is proposed to (i) fund changes in the project scope that improve soft-ground treatment measures for better overall quality of the completed roads and better road safety characteristics, (ii) meet the cost overruns and financing gaps due to increased cost of (a) land acquisition and resettlement and (b) general price escalation, and (iii) scale up a well-performing project by financing the cost of detailed design and implementation support for the subsequent stage 2 of the project.

Promoting economic growth in the project area and GMS by strengthening connectivity with neighboring countries and increasing competitiveness

Reduce transport times and costs, and induce more efficient movement of passengers and goods within the project area and between GMS countries

Cross-border processing times of under 0.5 hours for passengers and under 2.0 hours for freight by project completion achieved.

Traffic on improved roads to increase by 40% from 2008 baseline within 2 years of project completion achieved. The actual traffic of the project corridor in 2018 increased by 117% in comparing with that in 2005.

Reduction in passenger and freight vehicle operating costs by an average of 30%, in real terms, within 5 years of project completion is achieved. Upon project completion, the unit VOC was reduced by 23% to 36% for different vehicle types by comparing "with-project" and "without-project" cases

Completion of the road and bridge improvements enabling unrestricted passenger and freight transport

Border facilities constructed under Stage 2 GMS-SCCP

HIV/AIDS and trafficking awareness and prevention programs completed on the project road

Detailed design agreed and implementation support for Stage 2 GMS-SCCP is commissioned

Partially achieved.

Fnalization of updated RPs in Xa Xia-Ha Tien and Minh Luong Thu Bay sections was delayed compared to progress in compensation payments and land acquisition.

Achieved

Achieved

Achieved

Partially achieved.

Achieved.

Completed.

Completed.

Completed.

Completed.

Completed.

Cancelled

Environmental monitoring during construction phase includes documentation of affected people's complaints on the Project's environmental performance and the corresponding plan of action or actions taken to resolve such complaints.

Cuu Long CIPM, together with the local authorities and supervision consultants monitored all resettlement-related activities. In addition, Cuu Long engage an independent monitor to conduct an independent review and evaluation of resettlement activities on a quarterly basis.