The Asian Development Bank is working with Viet Nam to boost urban and water services in Bac Giang, Mong Cai and Sa Pa, three towns located along the North-South Economic Corridor within the Greater Mekong Subregion. The project is building and upgrading wastewater treatment plants and providing wastewater treatment services.
|Project Name||Second Greater Mekong Subregion Corridor Towns Development Project|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Water and other urban infrastructure and services / Other urban services - Renovation and protection of cultural heritage - Urban flood protection - Urban sewerage
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The Second Greater Mekong Subregion (GMS) Corridor Towns Development Project (the project) represents the second phase of the ongoing GMS Corridor Towns Development Project in Cambodia, Lao PDR and Viet Nam. It supports the first four strategic thrusts of the GMS Strategic Framework 2012 2022 namely (i) strengthening infrastructure linkages; (ii) facilitating cross-border trade, investment, and tourism; (iii) enhancing private sector participation and competitiveness; and (iv) developing human resources. The focus on corridor town development follows an approach that will maximize the economic benefits of increased trade and traffic flows along the major transport corridors in the GMS with the expected positive impacts resulting from accelerated investments in strategically located towns and cities, and added value on economic growth through development oriented on green growth and climate resilience. The objective is to strengthen competitiveness of the GMS economic corridors through environmental infrastructure.|
|Project Rationale and Linkage to Country/Regional Strategy||The towns of Bac Giang, Mong Cai and Sa Pa are located along the GMS North-South Economic Corridor, on the eastern branch that links Lao PDR with China, Thailand and Myanmar, and another which links Hanoi to the cities of Kunming and Nanning in the PRC. Bac Giang is the administrative capital of Bac Giang province, and is located about 50 km northeast of Hanoi. The city has a number of development and investment fundamentals in its favor; primarily its strategic location in key transport corridors linking centers of population and ports together and providing access to larger markets, principally into PRC and within the Hanoi capital region. Mong Cai is a cross border town opposite of Dongxing town, Guangxi Province, PRC. The economic base of Mong Cai is characterized by a typical border town economy comprising of trade and services and shows a rapidly expanding economy and significant levels of urbanization. Sa Pa is a small town located about 35 km from Lao Cai City. Sa Pa is an international tourist center and highland agricultural area, where strategic corridor investments in transport infrastructure are placing increasing development pressures on the high quality mountain landscapes and cultural diversity of the predominantly ethnic minority populations. The project is in line with the ADB Country Partnership Strategy for Viet Nam; ADB's Urban Operational Plan; the GrEEEn Cities Approach, which has been piloted in several cities in Viet Nam, Thailand, Myanmar, Malaysia, and Indonesia; ADB's Water Operational Plan; the GMS Strategic Framework; and the GMS Regional Investment Framework Implementation Plan (2014-2018). The towns under this project were selected and prioritized under the GMS Regional Investment Framework.|
|Impact||Economic, sociocultural, and environmental development in the three towns of Bac Giang, Mong Cai, and Sa Pa, improved, contributing to making Viet Nam a modern, industrial country. (Socio-economic Development Strategy, 2011 2020.)|
|Description of Outcome||Improved urban services in the three participating towns.|
|Progress Toward Outcome||
PISC contract was signed. PISC was mobilized in April 2017.
Civil works under MC1, MC2, BG1 and BG2 has started. SP2 was awarded. MC3, SP3, BG4, BG3 and CS3 are under evaluation. SP1 and CS2 are going to be advertised.
|Description of Project Outputs||
SLEDPs and Sa Pa GCAP developed
Priority urban infrastructure investments implemented
Institutional capacities for managing public investments strengthened.
Community awareness on project activities and environmental sustainability improved
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Not yet started. Recruitment of capacity building consultants to support these activities on-going in Bac Giang and Lao Cai. TOR of the consulting services is being appraised in Mong Cai
SLEDPs for Lao Cai and Bac Giang were approved.
SLEDP for Mong Cai was appraised, awaiting PPC approval.
Requirements relating to unskilled laborers were included in the Specific Conditions of Contracts.
DD of WWTP is on-going.
Construction just started.
(MC1 and MC2)
Appraisal of detailed design ongoing.
To be assessed in the next project quarterly report based on detailed designs.
To be assessed in the next project quarterly report based on DD.
Construction just started
(MC1 and MC2, physical progress 3%)
Construction just started (BG1 and BG2)
Contract awarded. LAR monitoring report is being revised for ADB no-objection to commencement of civil works.
Procurement on-going: BER is being reviewed by ADB
wait for cleared RP and baseline survey to proceed construction
20 PMU staff (of which 55% are female) were trained.
6 PMU staff were trained on gender aspects.
45% PMUs' staff are female and 38% PMUs staff holding position making decisions are female.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The project is classified as Category B for environment in accordance with the ADB's safeguards policy statement (SPS) 2009. One initial environmental examination (IEE) report and three environmental management plans (EMPs) (one per town) have been prepared.|
|Involuntary Resettlement||The safeguard category for involuntary resettlement is B. Two resettlement plan (RPs), one for Bac Giang and one for Mong Cai, are prepared for those components which will trigger land acquisition and resettlement (LAR) impacts. One resettlement and ethnic minority development plan (REMDP) is prepared for Sa Pa, as Indigenous People safeguards are triggered but limited to LAR and is category B.|
|Indigenous Peoples||For the Sa Pa subproject, indigenous peoples safeguards are triggered but limited to land acquisition and hence a resettlement, ethnic minority and development plan (REMDP) will be prepared in accordance with the requirements of the SPS (2009). The IP safeguard category is B.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation||
The Provincial People's Committees (PPCs) of Bac Giang, Lao Cai and Quang Ninh are the EAs which will oversee project activities in each of the three towns. Additionally, the PPC in Bac Giang Province is designed as the lead executing agency to coordinate among all PPCs on institutional management, project implementation and reporting.
Project management units (PMUs) will be established in each EA to undertake the day-to day management of subprojects, including the procurement of civil works and goods. As lead EA, the PMU in Bac Giang will be responsible for consultant selection for project implementation and management support; and act as coordinator between the project cities and the concerned central government agencies for project implementation. Each of the three EAs will hire consultants for detailed design, construction supervision and capacity development; and carry out procurement for their respective civil works and goods contracts. The EA in Lao Cai (Sa Pa Town) will be responsible for consultant selection for GCAP preparation. A project coordination unit (PCU) will be established within Bac Giang PMU to support the day-to-day coordination and liaison work among the three PMUs. The City People's Committees (CPCs) in Bac Giang and Mong Cai, and Lao Cai Department of Planning and Investment in Sa Pa will be the Implementing Agencies (IAs) which will coordinate and monitor the activities of the PMUs.
|Responsible ADB Officer||Nguyen, Binh My|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Viet Nam Resident Mission|
Bac Giang Provincial People's Committee
Bac Giang, Viet Nam Lao Cai Provincial People's Committee
Tran Hung Dao Avenue, Nam Cuong Ward,
Lao Cai City, Lao Cai Province People's Committee
Vietnam Quang Ninh's People's Committee
Nguyen Van Cu Road Ha Long City
Quang Ninh Province
|Concept Clearance||01 Jun 2015|
|Fact Finding||05 Jun 2015 to 10 Jun 2015|
|MRM||18 Aug 2015|
|Approval||01 Dec 2015|
|Last Review Mission||-|
|Last PDS Update||30 Mar 2018|
|Approval||Signing Date||Effectivity Date||Closing|
|01 Dec 2015||21 Mar 2016||10 Aug 2016||30 Jun 2021||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||121.67||Cumulative Contract Awards|
|ADB||100.00||01 Dec 2015||35.29||0.00||35%|
|Cofinancing||0.00||01 Dec 2015||8.97||0.00||9%|
|Status of Covenants|
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.
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.
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.
ADB Loan to Enhance Urban Services in Towns Along GMS Economic CorridorADB has approved a $100 million loan to support government efforts to boost urban and water services in Bac Giang, Mong Cai and Sa Pa, three towns located along the North-South Economic Corridor within the Greater Mekong Subregion.
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|BG1 - TRAN QUANG KHAI ROAD||Loan 3353||12 Dec 2017||VAN CUONG - TRANSPORT 1 CONST. & COMM. INVES.||HANOI, VIETNAM VIET NAM,SOC REP OF||People's Committee||CONSTRUCTION||6,862,432.00||6,254,954.00|
|BG2 - NORTH EASTERN RING ROAD||Loan 3353||12 Dec 2017||CONG TY XAY DUNG VIET DUC - 19.5||BAC NINH, VIETNAM VIET NAM,SOC REP OF||People's Committee||CONSTRUCTION||1,968,991.00||1,794,681.00|
|SP2 - ROAD 1 ROUTE 152||Loan 3353||12 Dec 2017||QUYET TIEN - DONG HAI - MINH DUC||152 NHAC SON, LAO CAI VIETNAM VIET NAM,SOC REP OF||People's Committee||CONSTRUCTION||6,053,048.00||5,503,740.00|
|MC2 - CONSTRUCTION OF THE WESTERN KALONG RIVER WAS TEWATER AND STORMWATER IMPROVEMENTS||Loan 3353||15 Nov 2017||NHAC SON - SEEN - VIWASEEN||HOANG MAI, HANOI VIETNAM VIET NAM,SOC REP OF||People's Committee||CONSTRUCTION||9,589,044.00||8,718,464.00|
|MC1 - CONSTRUCTION OF THE EASTERN KA LONG RIVER WA STEWATER AND STORMWATER IMPROVEMENTS||Loan 3353||07 Nov 2017||NHAC SON - SEEN - UDCC||VIETNAM VIET NAM,SOC REP OF||People's Committee||CONSTRUCTION||9,674,016.00||8,795,722.00|
|Project Implementation Consultancy Services||Loan 3353||26 May 2017||Haskoningdhv Nederland B.V.||Netherlands||People's Committee||Consultancy||1,375,514.72||—|
|Project Implementation Consultancy Services||3353||26 May 2017||Haskoningdhv Nederland B.V||Netherland||People's Committee||Consulting Services||1,375,515.00||1,375,416.00|
|Title||Document Type||Document Date|
|Second Greater Mekong Subregion Corridor Towns Development Project: Procurement Plan||Procurement Plans||Apr 2018|