||The Greater Mekong Subregion Southern Coastal Corridor (GMS-SCC) Project is part of the Southern Economic Corridor involving Thailand, Cambodia, and Viet Nam. In Viet Nam, the GMS-SCC runs from the Cambodia border south through Kien Giang and Ca Mau provinces to Ca Mau city on sections of national highway (QL) 80, QL61, and QL63. The project area in Vietnam includes the provinces Kien Giang (population 1.63 million) and Ca Mau (population 1.20 million). Implementation of the Viet Nam component will be undertaken under two or more stages because of funding constraints. Funding is currently available for stage 1 of the GMS-SCC Project, which includes improvement of a short section of QL80 between the border at Xa Xia and Ha Tien, and completion of the transport corridor to Ca Mau on the Minh Luong Ca Mau city section. Improvements to be funded under future stages will include improvements to the Ha Tien Rach Gia section of QL80 and a bypass to Rach Gia.
|Project Rationale and Linkage to Country/Regional Strategy
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 Export Import 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.