Viet Nam : Improving Operational Performance of the Water Supply Sector Project
In February 2011, the Asian Development Bank (ADB) approved a $1 billion multitranche financing facility (MFF) to fund operational improvements for urban water supply during 20112020. The MFF provides access to financing to many water companies to help them improve their operations and expand their water supply systems, including intake works, production transmission, and distribution. The facility addresses water as a limiting factor for growth and inclusiveness by expanding water supply services to peri-urban areas, ultimately increasing competitiveness and assisting the transformation of cities and towns to keep pace with rapid urbanization. This capacity development technical assistance (TA) is being processed in parallel with the MFF to help the Government of Viet Nam improve water supply services.
Project Details
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Project Officer
Ishii, Satoshi
Southeast Asia Department
Request for information -
Country/Economy
Viet Nam -
Modality
-
Sector
- Water and other urban infrastructure and services
Project Name | Improving Operational Performance of the Water Supply Sector Project | ||||||||||||||||
Project Number | 44002-022 | ||||||||||||||||
Country / Economy | Viet Nam |
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Project Status | Closed | ||||||||||||||||
Project Type / Modality of Assistance | Technical Assistance |
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Source of Funding / Amount |
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Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships Private sector development |
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Sector / Subsector | Water and other urban infrastructure and services / Urban water supply |
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Gender | Some gender elements | ||||||||||||||||
Description | In February 2011, the Asian Development Bank (ADB) approved a $1 billion multitranche financing facility (MFF) to fund operational improvements for urban water supply during 20112020. The MFF provides access to financing to many water companies to help them improve their operations and expand their water supply systems, including intake works, production transmission, and distribution. The facility addresses water as a limiting factor for growth and inclusiveness by expanding water supply services to peri-urban areas, ultimately increasing competitiveness and assisting the transformation of cities and towns to keep pace with rapid urbanization. This capacity development technical assistance (TA) is being processed in parallel with the MFF to help the Government of Viet Nam improve water supply services. In 2007, the government formulated a progressive legal framework that requires water companies to be equitized and to operate on business principles that would improve their performance. The government's Socio-Economic Development Plan, 20112015 includes water sector objectives: (i) identify water as a limiting factor of growth, and support local economic development by developing modern urban infrastructure, and (ii) improve the quality of life and health of people by providing access to safe water. The country program for the water sector in ADB's country partnership strategy, 20122015 for Viet Nam is consistent with these policies. The TA aims to prepare selected water companies to operate on sound business principles in order to efficiently fulfill their service obligations and establish a partnership with the private sector on a voluntary basis. |
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Project Rationale and Linkage to Country/Regional Strategy | The TA will contribute to the capacity development of selected water companies borrowing under the MFF to improve service to users, specifically targeting improved business planning and financial sustainability, nonrevenue water (NRW) reduction, energy efficiency, and water safety plans. The TA will help water companies define service contracts with local governments (as owners of the water companies and regulators of the water services) and users. The service contracts will include qualitative and quantitative key performance indicators, defined in the business plan, as a basis for regulation by contract, in the absence of an independent regulator. The TA will assist in strengthening the corporatization process to increase the accountability and performance of water companies, and to enable private sector participation in different forms, including PPPs. The TA will address institutional development of the water sector to support (i) the National NRW Reduction Program, which defines ambitious targets for NRW reduction from the current national average of 30%, and (ii) the circular that defines the methodology to calculate water tariffs. In 2014, ADB increased the TA amount by $500,000 to finance a pilot Pre-Feasibility Study under Public Private Partnership for the water and sanitation of Nghi Son Economic Zone, Thanh Hoa Province, Viet Nam (COMPLETED) In 2015, ADB increased the TA amount by $200,000 to finance assistance to the water companies to fast track project implementation of PFR1, PFR2, PFR3 and PFR4. The TA was extended to 2018. In 2016, ADB increased the TA amount by $120,000 to allocate additional training resources and provide comprehensive technical support to MFF0054-VIE and TA implementation. |
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Impact | Improved institutional framework for water supply services in Viet Nam |
Project Outcome | |
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Description of Outcome | Improved business practices of selected water companies, serving as best practice examples for the Viet Nam water sector |
Progress Toward Outcome | Ongoing. The TA received additional $120,000 in February 2017 to support water companies under the MFF0054-VIE Water Sector Investment Program, contributing to the TA outcome. |
Implementation Progress | |
Description of Project Outputs | 1. Improved performance and accountability of selected water companies 2. Introduction of pragmatic procedures for implementing the NonRevenue Water Reduction Program 3. Support for monitoring and evaluation mechanisms for water supply services |
Status of Implementation Progress (Outputs, Activities, and Issues) | 1) Ongoing: Definition of Key Performance Indicators and discussion with participating water companies on schedule for continuous improvement process and monitoring of water tariff increase to financial sustainability and compliance with Vietnamese Legislation 2) Completed: Review of Nonrevenue Water (NRW) under the Operation & Maintenance Diagnostic of the water companies. Water companies are borrowing under MFF0054-VIE for NRW 3) Ongoing: Monitoring and assistance to project implementation under MFF0054-VIE, especially L2754-VIE, L2961-VIE and L3251-VIE. Completed: Development of Public Private Partnership initiatives in water supply in line with the Government support for equitization of the water and sanitation sector. |
Geographical Location |
Summary of Environmental and Social Aspects | |
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Environmental Aspects | |
Involuntary Resettlement | |
Indigenous Peoples | |
Stakeholder Communication, Participation, and Consultation | |
During Project Design | Strong donor coordination on the project design to supplement the policy dialogue and capacity development under MFF0054-VIE |
During Project Implementation | The TA was extended to 2018 to support the implementation of MFF0054-VIE. Some water companies under the MFF0054-VIE expressed cancellation of loans. The TA monitors the current situation of water sector in Viet Nam, and conduct appropriate stakeholder consultations to analyze, understand and justify the loan cancellation. |
Business Opportunities | |
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Consulting Services | The TA will finance international consultants (estimated 36 person-months) and national consultants (52 person-months). |
Procurement | Equipment will be procured in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). |
Responsible ADB Officer | Ishii, Satoshi |
Responsible ADB Department | Southeast Asia Department |
Responsible ADB Division | Urban Development and Water Division, SERD |
Executing Agencies |
Asian Development Bank |
Timetable | |
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Concept Clearance | 13 Nov 2012 |
Fact Finding | 05 Sep 2012 to 07 Sep 2012 |
MRM | - |
Approval | 24 Apr 2013 |
Last Review Mission | - |
Last PDS Update | 18 May 2018 |
TA 8357-VIE
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
24 Apr 2013 | 07 Jun 2013 | 07 Jun 2013 | 31 Dec 2014 | 31 Dec 2018 | 31 Mar 2019 |
Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
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ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
Gov | Beneficiaries | Project Sponsor | Others | |||||
500,000.00 | 1,420,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,920,000.00 | 17 Jun 2022 | 1,712,880.42 |
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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Title | Document Type | Document Date |
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Improving Operational Performance of the Water Supply Sector Project: Technical Assistance Completion Report | TA Completion Reports | Sep 2020 |
Improving Operational Performance of the Water Supply Sector Project | Technical Assistance Reports | Apr 2013 |
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
Title | Document Type | Document Date |
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Viet Nam: Improving Operational Performance of the Water Supply Sector | Validation of Technical Assistance Completion Reports | Dec 2020 |
Related Publications
None currently available.
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Tenders
Contracts Awarded
Procurement Plan
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