The Asian Development Bank is working with Viet Nam to support the development of the five Viet Nam Development Triangle Area provinces Binh Phuoc, Dak Lak, Dak Nong, Gia Lai, and Kon Tum through road rehabilitation and capacity development efforts to boost tourism and transport as well as domestic and international trade.
|Project Name||Support to Border Areas 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||
Industry and trade / Trade and services
Transport / Road transport (non-urban)
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The project supports the Cambodia -Lao PDR- Viet Nam Development Triangle Area objectives of (i) facilitating the flow of goods, people, and investment capital; and (ii) accelerating economic growth within the five Viet Nam Development Triangle Area (VDTA) provinces of Binh Phuoc, Dak Lak, Dak Nong, Gia Lai and Kon Tum. The VDTA is characterized by a high concentration of ethnic minorities, low gross domestic product, and areas of persistent poverty. The key impediments to more inclusive growth are insufficient transport and other basic infrastructure, as well as limited institutional capacity. To improve the efficiency of public investment and maximize the benefits of economies of scale and synergies with ongoing or planned projects, the Government of Viet Nam is advocating an integrated area approach under which neighboring localities will work towards common development goals, gaining economies of scale, and jointly enhanced competitiveness. This approach characterizes the design philosophy of the project, which will address the key impediments to inclusive growth.|
|Project Rationale and Linkage to Country/Regional Strategy||
The VDTA is the largest agricultural producer in the CLV-DTA, and its five main industrial crops are coffee, rubber, pepper, cassava, and cashew kernels, which are traded on international commodity markets. Despite overall poverty reduction and the steady increase in agricultural production and exports since 1990's, VDTA provinces still face development challenges, such as (i) slow growth, (ii) persisting income and non-income inequality of vulnerable and disadvantaged groups, and (iii) low competitiveness. These are primarily due to (i) inadequate physical infrastructure, (ii) untapped business and livelihood development opportunities, and (iii) weak institutional capacity for investment planning and resource management. The VDTA has a population of 5,114,780 people, 33% of whom are ethnic minorities, spread over 51,552 square kilometers. Approximately 77% of the population is rural, and their main source of livelihood is agriculture. In 2014, the gross domestic product per capita in the VDTA was $1,683, about 80% of the national average, and the average poverty rate in the project provinces was approximately 9%, based on the national poverty line. While this was higher than the national average of approximately 6%, the average for ethnic minorities was about 19%. In all VDTA provinces, ethnic minorities form a disproportionately high percentage of the total poor population (47% in Binh Phuoc, 63% in Dak Lak, 62% in Dak Nong, 85% in Gia Lai, and 93% in Kon Tum), indicating that ethnic minorities are not fully benefiting from development advances. The VDTA's ethnic minorities have comparatively limited access to social services and economic assets and opportunities.
The project will help the VDTA overcome these constraints and contribute to CLV-DTA objectives by (i) improving safe transport connectivity by upgrading critical roads to strengthen agricultural value chains linking producers to markets, and rural communities to commercial and administrative centers; (ii) improving access to schools and health care services; (iii) supporting transport and trade facilitation (TTF); (iv) promoting inclusive, community-based tourism to improve the livelihoods of rural people, especially marginalized ethnic minorities; and (v) strengthening provincial capacity for more strategic investment planning and efficient project management. This integrated area approach will diversify economic and employment opportunities for rural communes by connecting them to increasing trade and passenger flows.
Related policies and strategies: The project is aligned with Viet Nam's Socio-Economic Development Plan (SEDP) 2016 2020, which aims to expand the domestic market, promote export, and sustain trading surpluses. More specifically, the SEDP 2016-2020 proposes to (i) strengthen domestic markets and promote exports by more closely linking production, processing, and distribution; (ii) improve the quality and competitiveness of local products, especially those that can be identified as Viet Nam's _trademark_; and (iii) more fully utilize existing and potential incentives through trade agreements.
The project is consistent with the Asian Development Bank (ADB) Strategy 2020 and its midterm review, which aim to (i) improve physical connectivity, (ii) expand the quality and coverage of basic infrastructure to help create jobs for poor persons and ethnic minorities living in underdeveloped areas, and (iii) build capacity for decentralized public sector management. These aims converge with the three pillars of ADB's country partnership strategy, 2016 2020 for Viet Nam: (i) the promotion of job creation and competitiveness, (ii) enhanced and more inclusive infrastructure and service delivery, and (iii) improved environmental sustainability and climate change response. The project is included in ADB's Viet Nam country operations business plan, 2017 2019.
The project will galvanize ADB's long-term commitment to the Greater Mekong Subregion (GMS) economic cooperation program by promoting closer integration and cooperation among cross-border areas within the CLV. It is consistent with the GMS Transport and Trade Facilitation Action Plan, the CLV-DTA updated master plan, and the government's transport development strategy. The project also fits well with the GMS Tourism Sector Strategy; and the government's Strategy for Tourism Development in Viet Nam until 2020, Vision to 2030. Overall, it will contribute to expanding market opportunities as envisaged by the Association of Southeast Asian Nations Economic Community.
|Impact||Engine and gateway within the five VDTA provinces to wider regional and international markets established.|
|Description of Outcome||Movement of goods, vehicles, and people among the five VDTA provinces increased|
|Progress Toward Outcome||The loan became effective on 10 August 2017 but implementation is being delayed due to the pending project inclusion in the medium-term investment plan (MTIP).|
|Description of Project Outputs||
Road infrastructure in five VDTA provinces rehabilitated
VDTA plans and facilities for transport and trade facilitation with a focus on inclusive growth developed
Institutional capacity for VDTA investment planning, project design and implementation, and resource management strengthened
|Status of Implementation Progress (Outputs, Activities, and Issues)||Individual start-up consultants and project implementation support consultants have been mobilized in five provinces. While detailed designs for Component 1 have been substantially completed in Binh Phuoc, Dak Nong and Kon Tum, procurement of the civil works is being delayed due to the pending project inclusion in MTIP.|
|Geographical Location||Binh Phuoc, Dak Nong, Gia Lai, Kon Tum, Tinh Dak Lak|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The project has been ranked as category B environment, since 05 road subprojects have been ranked as category B and small tourist infrastructure subprojects have been initially ranked as category C. 05 IEEs of 05 road subprojects have been prepared and uploaded on ADBs website during project preparation. Rapid environment assessments (REAs) for small tourist infrastructures are being prepared by PPMUs and submitted to ADB to confirm, only Category C subprojects are included in the project investments. With the support from environment consultants PISC team, the updated environment management plan (uEMP) of 5 road subprojects, to update impacts in detailed designs, are being prepared.|
|Involuntary Resettlement||The project has been ranked as category B environment, since 05 road subprojects have been ranked as category B and small tourist infrastructure subprojects have been initially ranked as category C. 05 IEEs of 05 road subprojects have been prepared and uploaded on ADBs website during project preparation. Rapid environment assessments (REAs) for small tourist infrastructures are being prepared by PPMUs and submitted to ADB to confirm, only Category C subprojects are included in the project investments. With the support from environment consultants PISC team, the updated environment management plan (uEMP) of 5 road subprojects, to update impacts in detailed designs, are being prepared.|
|Indigenous Peoples||The project does not affect identity, culture, and customary livelihoods of EMs, but may cause land acquisition of EM households. Hence, Category B is proposed for IP, and any subproject/component with category A in IP will not be eligible for ADB financing. Moreover, project activities do not involve in commercial development of the cultural resources within customary lands and knowledge of EM people, so the broad community support of affected ethnic minority people communities to the project is not triggered. A combined resettlement and ethnic minority development plan has been prepared for each road based on basic design and approved by ADB and PPC and disclosed to communities and uploaded in the ADB website.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||The Project will be designed in a consultative and participatory manner. Views and suggestions from relevant stakeholders, particularly central and provincial governments (i.e. the Ministry of Planning and Investment, Ministry of Transport, Ministry of Culture, Sports and Tourism, Provincial Peoples Committees (PPC) of the five DTA provinces), and development partners will be duly considered under the proposed Project.|
|During Project Implementation||The Project will be implemented in a consultative and participatory manner. Views and suggestions from relevant stakeholders, particularly central and provincial governments (i.e. Ministry of Planning and Investment, Ministry of Transport, Ministry of Culture, Sports and Tourism, Provincial Peoples Committees (PPC) of the five DTA provinces), and development partners will be duly considered.|
|Consulting Services||ADB will finance :(i) construction supervision consulting services packages and (ii) external financial audit packages of 5 provinces. The selection methods are Quality- and Cost-Based Selection (QCBS) for construction supervision services and Least Cost Selection (LCS) for external financial audit services.|
|Procurement||ADB will finance: (i) 10 road upgrading packages with cost estimates vary from $7.6 million to $9.6 million per package; and (ii) 6 packages for minor civil works construction under tourism component of the project. Procurement method will be National Competitive Bidding (NCB).|
|Responsible ADB Officer||Nguyen, Cuong Dinh|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Viet Nam Resident Mission|
Binh Phuoc Provincial People's Committee
Road 6/1, Tan Phu Ward, Dong Xoai Town Dak Lak Provincial People's Committee
09 Le Duan, Buon Ma Thuot City,
Dak Lak Province, Viet Nam Dak Nong Provincial People's Committee
23/3 Street, Nghia Duc Ward, Gia Nghia
Town, Dak Nong Province Gia Lai Provincial People's Committee
No. 2, Tran Phu Street Kon Tum Provincial People's Committee
492 Tran Phu, Kon Tum City, Kon Tum Province
|Concept Clearance||19 Dec 2014|
|Fact Finding||30 May 2016 to 18 Jun 2016|
|MRM||25 Jul 2016|
|Approval||08 Dec 2016|
|Last Review Mission||-|
|Last PDS Update||27 Sep 2018|
|Approval||Signing Date||Effectivity Date||Closing|
|08 Dec 2016||04 May 2017||10 Aug 2017||30 Jun 2023||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||122.11||Cumulative Contract Awards|
|ADB||106.51||08 Dec 2016||0.00||0.00||0%|
|Cofinancing||0.00||08 Dec 2016||0.00||0.00||0%|
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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
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ADB to Support Development of 5 Border Provinces in Viet NamADB has approved a $106.51 million loan to support the development of the five VDTA provinces through road rehabilitation, imrovement of tourism and transport connectivity, as well as domestic and international trade.
|Tender Title||Type||Status||Posting Date||Deadline|
|Construction supervision for Output 01: Road infrastructure in five VDTA provinces rehabilitated||Firm - Consulting||Closed||23 Mar 2019||21 Apr 2019|
|External Financial Audit (Phase 01 2017-2020)||Firm - Consulting||Closed||20 Mar 2019||18 Apr 2019|
|External Financial Audit Stage 1||Firm - Consulting||Closed||19 Mar 2019||17 Apr 2019|
|External Financial Audit (Phase 1, 2017-2020)||Firm - Consulting||Closed||19 Mar 2019||17 Apr 2019|
|External Financial Audit (Phase 1, 2017-2020)||Firm - Consulting||Closed||15 Jan 2019||18 Feb 2019|
|Construction Supervision apply for packages: BP-Cw-01 and BP-Cw-02||Firm - Consulting||Closed||15 Sep 2018||14 Oct 2018|
|Construction supervision for Output 01: Road infrastructure in five VDTA provinces rehabilitated (Kon Tum sub-project)||Firm - Consulting||Closed||12 Sep 2018||11 Oct 2018|
|Construction Supervision for 02 packages DN-Cw-01 and DN-Cw-02||Firm - Consulting||Closed||06 Jun 2018||05 Jul 2018|
No contracts awarded for this project were found
|Title||Document Type||Document Date|
|Support to Border Areas Development Project: Procurement Plan||Procurement Plans||May 2018|