45406-001: Low Carbon Agricultural Support Project | Asian Development Bank

Viet Nam: Low Carbon Agricultural Support Project

Sovereign (Public) Project | 45406-001 Status: Active

ADB is helping Viet Nam fund biogas plants across the country to process agricultural and rural household waste into biogas and bio-slurry, a clean organic fertilizer. The project will help reduce greenhouse gas emissions and promote environmentally safe, climate-friendly waste management practices. It will also provide credit lines through financial intermediaries for biogas value chains.

Project Details

Project Officer
Ranawana, S. Southeast Asia Department Request for information
  • Viet Nam
  • Loan
  • Agriculture, natural resources and rural development
Project Name Low Carbon Agricultural Support Project
Project Number 45406-001
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2968-VIE: Low Carbon Agricultural Support Project
concessional ordinary capital resources lending / Asian Development Fund US$ 74.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development

Energy / Renewable energy generation - biomass and waste

Finance / Infrastructure finance and investment funds

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The Project will enhance climate smart agriculture development and practices focused on strengthening Low Carbong Agriculture (LCA) policies and institutions; establishing infrastructure support for agri-waste management; and, enhancing LCA technology and development transfer. These will be parts of climate change (CC) mitigation and adaptation measures to reduce green house gas (GHG) emission in 19 provinces of Viet Nam.
Project Rationale and Linkage to Country/Regional Strategy

The transformation of agriculture production into environment-friendly and sustainable system is fully aligned with the Government of Viet Nam (the Government) and the Asian Development Bank (ADB) strategic and operational priorities on CC mitigation and adaptation. The Government has been continuously seeking green growth strategies to reduce its CC vulnerability. In recent years, many policies and regulations have been enacted, creating a conducive policy and legal framework. Consistent with these strategic priorities, ADB's environment, natural resources and agriculture sector investments in Viet Nam focus on rural infrastructure and water resources management for enhancing environmental sustainability and climate resilience.

Climate change is a development issue, rather than a solely environmental one; and its interrelationship with food security, bioenergy and poverty is complex. Inflation in Viet Nam reached 18% in 2011, the highest in the region, led by big rises in the cost of food, causing financial hardship for many people. While agriculture's share (20%) of the gross domestic product is declining, its output, however, is expanding. The sector remains a key contributor to exports (25%) and employment (70% of rural households, HHs). Agriculture is the largest contributor (43%) of the national GHG emission. GHG emissions from the burning of biomass in open fields are also significant . Over 40% of arable land is degraded because of heavy use of inorganic fertilizers and other unsustainable agricultural practices. Deforestation has been continuously increasing since about 56% of Vietnamese HHs still rely on the unsustainable harvest of firewood for their energy needs. The use of firewood for cooking creates indoor pollution, causing serious respiratory diseases, especially among rural women and children.

The Government is promoting the use of abundant biomass sources, such as livestock manure and other agri-wastes, to produce biogas as a clean energy source for rural HHs. The _reduce, reuse, and recycle_ of agricultural wastes will decrease GHG emission and the release of harmful wastes into the environment. The biogas plants (BPs) have the following benefits: (i) reduced: human and livestock disease outbreaks; methane emissions; fuel/fire wood consumption; water, air (in and out door) and land pollutants; and (ii) increased: savings in time and money, quantity of organic fertilizers; and potential access to carbon credit revenue (CR) schemes. From an ADB supported project , BPs have been found to have financial internal rates of return of 54% and economic rates of return of 55% with increases in HH incomes averaging 86%.

The Government has targeted the country to construct four million of small scale biogas plants (SBPs) by 2020 (from about 0.5 million in 2010 ) to cover the need of about 8.5 million small livestock farms. Significant acceleration is also required for medium and large scale biogas plants (MBPs and LBPs), since only less than 100 MBPs and LBPs were constructed (out of existing 21,000 medium and large livestock farms). Further improvement is required for biogas development, such as bio-slurry, livestock farm and other value chain management. Beyond the infrastructure support, additional investment on the regulatory, knowledge, technology development, diffusion and extension to continuously enhance climate smart agriculture practices and transfer, is also required.

Impact Less agriculture-related pollution
Project Outcome
Description of Outcome Greater uptake of Climate Smart Agricultural Waste Management Practices (CSAWMP)
Progress Toward Outcome The Project is making good progress in terms of meeting the original targets at the impact and outcome levels. 2 out of 2 impact indicators are being achieved and likely to be achieved by 2024 are (i) Livestock waste effluents in water resources is reduced by at least 69.4 % and (ii) Amount of CO2 emission per 1m3 of LCASP biogas digester is 0.54 ton. 2 out of 3 outcome indicators are being achieved are (ii) At least 88.4% energy produced by BVCs is utilized and (iii) Daily workload of women and children is reduced by 2.85 hours.
Implementation Progress
Description of Project Outputs

1. Expanded Use of Livestock Waste Management Infrastructure

2. Credit Lines for Biogas Value Chains and other climate smart agriculture waste management investments

3. Enhanced Climate Smart Agriculture Waste Management Practices (CSAWMP) technology transfer

4. Effective project management

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

Output 1:

A total of 47.948 SBVCs, 08 MBPs and 02 LBPs have been constructed by livestock farming HH of which 3.274 SBPs (6.8%) are constructed for ethnic minorities in 5 selected provinces. (Son La: 925 SBPs, Bac Giang: 394 SBPs, Soc Trang: 873 SBPs, Lao Cai: 904 SBPs, Phu Tho: 178 SBPs)

A total of 43.099 SBVCs, 06 MBPs owners received financial incentives.

48.270 SBP operators, 400 masons, 1.209 technicians, 28 engineers and 10

contractors trained.

17.096 trainees on biogas use are women (accounting for 35.4%).

19 trainees on SBP construction are women (accounting for 4.7%).

281 trainees on biogas management and technical issues are women (accounting for 23.2%)

National biogas database established, sofware to merge data on biogas plants procured.

32.610 biogas plants under LCASP have been updated to the database software with 25.586 biogas plants imported both husband's and wife's names.

Output 2:

29,1% of credit lines are under account on behalf of women.

347 sub-loans have been disbursed with total 15.2 billion VND.

Output 3:

05 research packages have been identified. ADB approved submission 1 of package 25, 26, 27 and 28 and submission 0 of package 29

ADB and MARD approved the list of 7 demonstration models and updated to Procurement Plan. Package 32: APMB has issued the decision approving the selection of contractor. Currently, CPMU is now in the process of negotiating with contractors. Package 33: APMB approved the list of configuration of this package. Package 34,37,38: CPMU submitted bidding document of the package to APMB for approval.

7.030 farmers, 1.814 extension staffs, 115 researchers trained on CSAWMP.

3.564 farmers trained are women (accounting for 51%).

640 extension staffs trained are women (accounting for 35.3%)

Output 4:

MARD appointed Dr. Nguyen The Hinh as the Project Director to lead project implementation and to supervise the Project's CPMU. He will be supported by two Project Deputy Directors, Mr. Hoang Thai Ninh and Mr. Vu Tien Dung; and 24 staff in the CPMU office. Each PPMU is led by a project manager. Key PPMU staff have been selected based on their qualifications and experience in the management of similar projects. To date, approximately 46% of staff is women.

Monitoring and Evaluation consultant has been mobilized and conducted M&E tools for DMF, GAP, Loan covenant, and Training data.

A consultancy provider to gather baseline data has been recruited and conducted surveys in all project provinces.

The gender consultant has been mobilized and now supporting all gender related activities.

Geographical Location Tinh Bac Giang, Tinh Ben Tre, Tinh Binh Dinh, Tinh Ha Tinh, Tinh Lao Cai, Tinh Nam Dinh, Tinh Phu Tho, Tinh Soc Trang, Tinh Son La, Tinh Tien Giang
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects

The safeguard categorization for environment is B. The extent and nature of environmental impacts are influenced by the fact that the biogas plant and other CSAP investments will be subject to a screening process that will exclude those that may carry significant negative impacts. As such, no biogas plant and other CSAP investments with expected significant environmental adverse impacts (category A according to ADB screening procedures) will be selected.

The potential environmental impacts will be addressed by the Project as follows: (i) careful design of CSAP investments to ensure that increased capacities are accommodated, (ii) development of management plans for the re-use and/or proper disposal of agri-waste, (iii) careful design for biogas plants and other CSAP assets, (iv) provision for collection and disposal of solid waste from rural areas, (v) studies appropriate mitigation measures for any perceived negative impact, (vi) inclusion of contract requirements for contractors to quality control for and carry out all practicable steps to mitigate construction impacts, (vii) increased attention to ensure adequate maintenance of biogas plants and other CSAP assets, and (viii) safety awareness programs are conducted in each of CSAP investment.

Management of the preparation and implementation of each BP and other CSAP investment will be the responsibility of each asset investor. Relevant agencies will be empowered from national to commune level. They will operate in close coordination with the PPMU. Technical support for all aspects of project management and implementation will be provided by the safeguard consultants hired by the CPMU.

An initial environmental examination (IEE) has been prepared for the project, which outlines the potential adverse environmental impacts and mitigation measures. An environmental management plan has been included in the IEE. During the project implementation, IEE will be prepared as necessary within a Category B classification in accordance with the approved environmental assessment and review framework (EARF) and the approved IEE prepared during the design phase.

The PPC, through the PPMU will have responsibility for ensuring that all mitigation measures are implemented. The IEE of the first proposed MBP and the IEE of the first proposed LBP will be submitted to ADB for review and approval prior to construction. If the quality is acceptable and consistent with ADB's Safeguard Policy Statement 2009 then the subsequent IEEs can be approved by the Project Director in the CPMU. In provinces where MBPs and LBPs will be installed, an environment specialist from the relevant Provincial Department of Natural Resources and Environment (DONRE) will be seconded to the PPMU for environmental management and monitoring tasks.

The approved IEE is adequate and there is no need for further detailed study or Environmental Impact Assessment (EIA). No additional study or follow-up EIA is needed under the ADB system, without prejudice to other requirements that the government may enforce under Viet Nam's policy, legal and administrative framework governing EIA.

Involuntary Resettlement The safeguard categorization is C for involuntary resettlement. No action is required since the project requires no land acquisition and has no involuntary resettlement impacts. Biogas value chain (BVC) management infrastructure will be constructed on land belonging to the BVC owners. The project selection criteria will exclude activities that entail land acquisition and/or involuntary resettlement. MARD and the implementing agencies will monitor and ensure that land to be used for the construction and operation of BVCs are within that owned by the BVC owners/beneficiaries.
Indigenous Peoples

The safeguard categorization is B for indigenous people therefore an Indigenous Peoples Plan (ethnic minority development plan, EMDP, in local term) was prepared. The IPP/EMDP objective is to design and implement the project in a way that fosters full respect for indigenous people/ethnic minority identity, dignity, human rights, livelihood system, and cultural uniqueness as defined by the indigenous people/ethnic minority themselves so that they: (i) receive culturally appropriate social and economic benefits, (ii) do not suffer adverse impacts as a result of the Project, and (iii) can participate actively in the various investments funded by the Project.

Measures were taken in designing the Project to encourage participation and contribution of the indigenous people/ethnic minority based on the recognition of their unique social and cultural characteristics that may require customized approaches and interventions. This includes: (i) the screening of CSAWMP investments to include indigenous people/ethnic minority as the project beneficiaries; (ii) targeted 5% of SBP for indigenous people/ethnic minority focused in three sample provinces; (iii) Indigenous people/ethnic minority involvement in the construction, management, capacity development/skills training, as maintenance operators and masons of biogas and other CSAWMP investments; (iv) additional human resources support to ensure that indigenous people/ethnic minority received adequate technical support and advise when needed.

The relevant agencies will encourage indigenous people/ethnic minority participation as members for equal access and control in various aspects of biogas development. The IPP/EMDP was prepared to address the twin issues of risk mitigation and benefit enhancement. It is based on the findings of the social assessment and results of consultations with key stakeholders in three sample provinces of Bac Giang, Soc Trang, and Son La Province undertaken during the project's fact-finding mission. It is in line with Government strategies for indigenous people/ethnic minority as well as ADB SPS (2009) requirement 3. Adequate human and financial resources have been allocated to facilitate the implementation of IPP/EMDP.

Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

The Project has been designed to improve the well-being of poor people, especially the vulnerable and excluded groups, through a series of investments in biogas plants and other CSAWMP assets. During project implementation, the process of consultation will continue throughout the feasibility study and detailed design phase of each biogas plant and other CSAP investments to afford community groups the opportunity to voice their views on how the Project is to be implemented and operated to benefit them. This will be accomplished through a series of community consultation meetings at commune and district level. Community consultations with ethnic minority groups shall be tailored to the needs of ethnic minorities and conducted in a culturally- appropriate manner.

The community consultation meetings will be carried out by the PPMUs in collaboration with financial intermediaries, and the design and safeguard consultants. It will include the participation of representatives from the District People's Committee, the Commune People's Committee, and mass organizations such as the Women's Unions, the Farmers' Union and the Youth Union. The communities will be briefed on all aspects of the Project including the detailed investments and the safeguard issues of environment, social, management and financial aspects of the Project. Women will be particularly encouraged to actively participate in the consultation meetings and voice their opinions and views about the subproject design and implementation arrangements.

The community will also be informed of the O&M arrangements for the biogas plants and other CSAP value chain investment and their expected participation in kind or otherwise in this aspect of the work. They will be encouraged to provide ideas and feedback to the design team and raise their concerns regarding potential negative impacts of the biogas plants and other supporting value chain infrastructure on the environment and the welfare of the community. The feedback obtained from these community consultation meetings will be incorporated as necessary in the detailed design of biogas plants and the supporting investments. The process of consultation is expected to build ownership of the biogas plants and other investments by the owners as well as the community and hence foster better sustainability of the investment.

During planning process, it is anticipated that the community will be mobilized in a number of different ways during the design, implementation and operation of different CSAP investments. Since most of the CSAP assets involved biogas plant construction and other supporting value chain infrastructure, there is a scope for the community to participate in the selection of the site and alignment for instance. Most of the assets are privately owned by households or enterprises. The potential benefits of the investments to the overall communities will be assessed during consultation meetings.

During the construction phase of biogas plants and their value chain infrastructure, a significant opportunity for active participation, and for many poor households to benefit from the Project, is in providing wage labor. This will be encouraged through various training for technicians and the bidding documents which will request the contractors to investigate this option whenever possible, especially for MBPs and LBPs. It will also be possible for communities to participate effectively in the supervision of the construction works.

The community will also be required to participate in the operation and maintenance (O&M) of the completed biogas plants and other value chain infrastructure whenever possible, such as through promotion of the use of bioslurry for organic fertilizers; connection of gas and electricity produced by biogas plants to the neighborhood or public grids; provision of labor or in some cases cost and revenue sharing for common uses of the assets.

Responsible ADB Officer Ranawana, S.
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Ministry of Agriculture and Rural Development
[email protected]
Room 305 Building A15
10 Nugen Cong Hoan Street
Ba Dinh District, Hanoi, Vietnam
Concept Clearance 07 May 2012
Fact Finding 15 May 2012 to 24 May 2012
MRM 14 Aug 2012
Approval 12 Dec 2012
Last Review Mission -
Last PDS Update 06 Oct 2017

Loan 2968-VIE

Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Dec 2012 07 Mar 2013 05 Jun 2013 30 Jun 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 84.00 Cumulative Contract Awards
ADB 74.00 12 Dec 2012 20.17 0.00 29%
Counterpart 10.00 Cumulative Disbursements
Cofinancing 0.00 12 Dec 2012 19.99 0.00 29%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

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.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Low Carbon Agricultural Support Project: Procurement Plan Procurement Plans Oct 2017
Low Carbon Agricultural Support Project: VBARD Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements Aug 2017
Low Carbon Agricultural Support Project: Co-op Bank Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements Aug 2017
Low Carbon Agricultural Support Project: Audited Project Financial Statements (January-December 2016) Audited Project Financial Statements Jul 2017
Low Carbon Agricultural Support Project: VBARD Audited Project Financial Statements (15 September 2014-31 December 2015) Audited Project Financial Statements Jun 2016
Low Carbon Agricultural Support Project: Co-op Bank Audited Project Financial Statements (18 August 2014-31 December 2015) Audited Project Financial Statements Jun 2016
Low Carbon Agricultural Support Project: Audited Project Financial Statements (January-December 2015) Audited Project Financial Statements Jun 2016
Low Carbon Agricultural Support Project: Audited Project Financial Statements (5 June 2013 - 31 December 2014) Audited Project Financial Statements Dec 2015
Dự án Hỗ trợ Lĩnh vực Nông nghiệp Phát thải ít Các-bon : Bảng Dữ liệu Dự án Translated PDS Jul 2014
Loan Agreement (Special Operations) for Low Carbon Agricultural Support Project Loan Agreement (Special Operations) Mar 2013
Project Agreement for Low Carbon Agricultural Support Project Project/Program Agreements Mar 2013
Low Carbon Agricultural Support Project Gender Action Plans Nov 2012
Low Carbon Agricultural Support Project: Report and Recommendation of the President Reports and Recommendations of the President Nov 2012
Low Carbon Agricultural Support Project Project/Program Administration Manual Oct 2012
Low Carbon Agricultural Support Project Initial Poverty and Social Analysis Jun 2012

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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
WA A0013_SOE 1,2,4,5 Loan 2968 05 Sep 2017 VARIOUS VARIOUS VIET NAM,SOC REP OF Ministry of Agriculture and Rural Development OTHERS 1305865 1305865
WA A0012 SOE 1, 2, 4, 5 Loan 2968 17 Mar 2017 Various Various Viet Nam Ministry of Agriculture and Rural Development Others 2049854.85 2049854.85

Procurement Plan