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 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.

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 The loan has become effective on 10 August 2017.
Implementation Progress
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) The 5 project provinces have been implementing advance actions, including: (i) establishment of PPMUs; (ii) recruitment of start-up and project implementation support consultants; and (iii) recruitment of detailed design consultant. There is no projected contract awards and disbursements under the loan in 2017. In 2018, it is anticipated that awards and disbursements are $36.2 million and $5.6 million, respectively.
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 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 ADB's 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. The environment consultants are being mobilized in PISC consultant team to support 05 PPMUs in updating environment management plans (EMPs) of 05 road subprojects
Involuntary Resettlement Project activities involve in the rehabilitation of one national road and four provincial roads. The rehabilitation is mainly within the existing right of ways, except extension of some road bends. A Social impact assessment has been conducted and shown that there is no household losing 10% or more of their productive land or relocating. Therefore, the project causes minor impact on local people and be category B in involuntary resettlement. Any subproject/component with category A in IR will not be eligible for ADB financing. 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.
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.
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
Provincial People's Committee of Binh Phuoc
[email protected]
Road 6/1, Tan Phu Ward, Dong Xoai Town
Provincial People's Committee of Dak Lak
[email protected]
09 Le Duan, Buon Ma Thuot City,
Dak Lak Province, Viet Nam
Provincial People's Committee of Gia Lai
[email protected]
No. 2, Tran Phu Road
Provincial People's Committee of Kon Tum Province
[email protected]
492 Tran Phu, Kon Tum City, Kon Tum
Province
Provincial People's Committee, Dak Nong
[email protected]
23/3 Street, Nghia Duc Ward, Gia Nghia
Town, Dak Nong 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 03 Nov 2017

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 0.00 0.00 0%
Counterpart 15.60 Cumulative Disbursements
Cofinancing 0.00 08 Dec 2016 0.00 0.00 0%

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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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: Provincial Road 756 (Binh Phuoc) Initial Environmental Examination Initial Environmental Examination Jul 2016
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 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
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) Initial Environmental Examination Initial Environmental Examination 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: National Highway 29 (Dak Lak) 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 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.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan