fbpx 48189-002: Support to Border Areas Development Project | Asian Development Bank

Viet Nam: Support to Border Areas Development Project

Sovereign (Public) Project | 48189-002 Status: Active

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 Details

Project Officer
Nguyen, Cuong Dinh Southeast Asia Department Request for information
Country
  • Viet Nam
Modality
  • Loan
Sector
  • Transport
 
Project Name Support to Border Areas Development Project
Project Number 48189-002
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3499-VIE: Support to Border Areas Development
concessional ordinary capital resources lending / Asian Development Fund US$ 106.51 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
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.
Project Outcome
Description of Outcome Movement of goods, vehicles, and people among the five VDTA provinces increased
Progress Toward Outcome On-going with potential delay due to delayed and insufficient ODA budget allocations.
Implementation Progress
Description of Project Outputs

Road infrastructure in the five VDTA provinces rehabilitated

VDTA plans and facilities to facilitate transport and trade 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)

Procurement of the rehabilitation works is on-going in Dak Nong and Kon Tum. Bidding documents are being prepared/finalized in Dak Lak, Gia Lai, and Binh Phuoc. Recruitment of construction supervision consultant was completed in Dak Nong and is on-going in the other four provinces.

The preparation of the plans and implementation of facilities is on-going. Construction of tourism sites is on-going in Kon Tum. For the three tourism sites in Binh Phuoc, detailed design has been completed for package BP-W-01, procurement is on-going for package BP-W-02, and scope of works is being identified for package BP-W-03. In Dak Lak, detailed design will be approved in Q1 2020. In Dak Nong, the recruitment of a detailed design consultant will start in Q1 2020. In Gia Lai, a proposal for a new tourism site is being assessed.

Training for capacity building is being prepared.

Geographical Location Binh Phuoc, Dak Nong, Gia Lai, Kon Tum, Tinh Dak Lak
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The project has been ranked as category B environment since 5 road subprojects have been ranked as category B and small tourist infrastructure subprojects have been initially ranked as category C. 5 IEEs of 5 road subprojects have been prepared and uploaded on ADB's website during project preparation. Rapid environment assessments (REAs) for small tourist infrastructures are being prepared and submitted to ADB to confirm, only Category C subprojects are included in the project investments. The updated environment management plan (uEMP) of 5 road subprojects, to update impacts in engineering detailed designs have been prepared, approved by ADB and are being integrated in civil package bidding documents.
Involuntary Resettlement The project has been ranked as category B involuntary resettlement since 5 road subprojects have been ranked as category B and small tourist infrastructure subprojects have been initially ranked as category C. 5 resettlement and ethnic minorities development plans (REMDPs) of 5 road subprojects have been prepared and uploaded on ADB's website during project preparation. With the support from social safeguards consultants of project implementation support consultant (PISC), the updated REMDP (uREMDP) 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 ethnic minorities (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.
Business Opportunities
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
Executing Agencies
Binh Phuoc Provincial People's Committee
[email protected]
Road 6/1, Tan Phu Ward, Dong Xoai Town
Dak Lak Provincial People's Committee
[email protected]
09 Le Duan, Buon Ma Thuot City,
Dak Lak Province, Viet Nam
Dak Nong Provincial People's Committee
[email protected]
23/3 Street, Nghia Duc Ward, Gia Nghia
Town, Dak Nong Province
Gia Lai Provincial People's Committee
[email protected]
No. 2, Tran Phu Street
Kon Tum Provincial People's Committee
[email protected]
492 Tran Phu, Kon Tum City, Kon Tum Province
Timetable
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 07 Feb 2020

Loan 3499-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
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 0.89 0.00 1%
Counterpart 15.60 Cumulative Disbursements
Cofinancing 0.00 08 Dec 2016 5.85 0.00 6%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - Unsatisfactory Unsatisfactory - Unsatisfactory

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 Access to Information Policy (AIP) 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.

Title Document Type Document Date
Support to Border Areas Development Project: Binh Phuoc Subproject Ethnic Minority Development Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans May 2020
Support to Border Areas Development Project: Social Monitoring Report (July-December 2019) Social Monitoring Reports Apr 2020
Support to Border Areas Development Project: Kon Tum Province Resettlement Due Diligence Report Safeguards Due Diligence Reports Mar 2020
Support to Border Areas Development Project: Road to Bu Prang Border Gate, Dak Nong Updated Resettlement and Ethnic Minorities Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Mar 2020
Support to Border Areas Development Project: Environmental Monitoring Report (June-December 2019) Environmental Monitoring Reports Jan 2020
Support to Border Areas Development Project: Social Monitoring Report (June-December 2018) Social Monitoring Reports Jul 2019
Support to Border Areas Development Project: Social Monitoring Report (January-June 2019) Social Monitoring Reports Jul 2019
Support to Border Areas Development Project: Kon Tum - Ethnic Minority Development Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Jan 2019
Support to Border Areas Development Project: National Road 29 (Dak Lak) Initial Environmental Examination Initial Environmental Examination Jul 2016
Support to Border Areas Development Project: Provincial Roads 686 and 681 (Dak Nong) Initial Environmental Examination Initial Environmental Examination Jul 2016
Support to Border Areas Development Project: Provincial Road 675A (Kon Tum) Initial Environmental Examination Initial Environmental Examination Jul 2016
Support to Border Areas Development Project: Provincial Road 756 (Binh Phuoc) Initial Environmental Examination Initial Environmental Examination Jul 2016
Support to Border Areas Development Project: Provincial Road 756 (Binh Phuoc) Resettlement and Ethnic Minorities Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Jul 2016
Support to Border Areas Development Project: Provincial Road 665 (Gia Lai) Resettlement and Ethnic Minorities Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Jul 2016
Support to Border Areas Development Project: Provincial Road 665 (Gia Lai) Initial Environmental Examination Initial Environmental Examination Jul 2016
Support to Border Areas Development Project: National Highway 29 (Dak Lak) Resettlement and Ethnic Minorities Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Jul 2016
Support to Border Areas Development Project: Provincial Road 675A (Kon Tum) Resettlement and Ethnic Minorities Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Jul 2016
Support to Border Areas Development Project: Road to Bu Prang Border Gate (Dak Nong) Resettlement and Ethnic Minorities Development Plan Combined Resettlement Plan and Indigenous Peoples Plans Jul 2016

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) 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.

Tenders

Tender Title Type Status Posting Date Deadline
Loan 3499-VIE: Support to Border Areas Development Project [BP-Cw-02] Invitation for Bids Active 17 Jun 2020 21 Jul 2020
Loan 3499-VIE: Support to Border Areas Development Project [BP-CW-01] Invitation for Bids Closed 24 Apr 2020 26 May 2020
Loan 3499-VIE: Support to Border Areas Development Project [GL-CW-01] Invitation for Bids Closed 13 Apr 2020 14 May 2020
Loan 3499-VIE: Support to Border Areas Development Project [GL-CW-02] Invitation for Bids Closed 13 Apr 2020 14 May 2020
External Financial Audit (Stage 1) Firm - Consulting Closed 18 Oct 2019 16 Nov 2019
Construction supervision for Output 01: Road infrastructure in five VDTA provinces rehabilitated Firm - Consulting Closed 15 Oct 2019 13 Nov 2019
Loan 3499-VIE: Support to Border Areas Development [DN-CW-02] Invitation for Bids Closed 15 Oct 2019 18 Nov 2019
Construction supervision for 02 packages GL-Cw-01 and GL-Cw-02 Firm - Consulting Closed 10 Oct 2019 08 Nov 2019
External Financial Audit (Phase 1, 2017 - 2020) Firm - Consulting Closed 07 Oct 2019 05 Nov 2019
Loan 3499-VIE: Support to Border Areas Development [DN-CW-01] Invitation for Bids Closed 30 Sep 2019 01 Nov 2019
Loan 3499-VIE: Support to Border Areas Development [KT-CW-02] Invitation for Bids Closed 19 Sep 2019 04 Nov 2019
Loan 3499-VIE: Support to Border Areas Development [KT-CW-01] Invitation for Bids Closed 17 Sep 2019 01 Nov 2019
External Financial Audit (Phase 01 2017-2020) Firm - Consulting Closed 20 Mar 2019 18 Apr 2019
External Financial Audit (Phase 1, 2017-2020) Firm - Consulting Closed 19 Mar 2019 17 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 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

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CONSTRUCTION SUPERVISION FOR CIVIL WORKS PACKAGES DN-CW-01 AND DN-CW-02 Loan 3499 29 Dec 2019 APAVE ASIA - PACIFIC COMPANY N/A VIET NAM,SOC REP OF VIET NAM,SOC REP OF Dak Lak Provincial People's Committee CONSULTANCY 328,912.00 328,869.43

Procurement Plan