fbpx 48260-001: Ho Chi Minh City Integrated Public Transport Investment Program | Asian Development Bank

Viet Nam: Ho Chi Minh City Integrated Public Transport Investment Program

Sovereign (Public) Project | 48260-001 Status: Closed

The Investment Program will support the development of an efficient, integrated and sustainable public transport system for Ho Chi Minh City (HCMC) in Viet Nam. It will improve the extent and connectivity between bus systems, proposed Mass Rapid Transit (MRT) network and other modes of public and private transport, and strengthen urban transport policies and regulations in the city. By contributing to the overall public transport system, the investment program will support the objective of the HCMC's Urban Transport Master Plan (HUTMP) to increase the use of public transport and reduce dependency on private vehicles. Investments are expected to include MRT, bus rapid transit (BRT), multimodal interchange, other public transport integration and traffic works and services improvements. Support will be provided for transport planning, institutional and public transport policy reform and capacity development.

Project Details

Project Officer
Mizusawa, Daisuke Southeast Asia Department Request for information
Country
  • Viet Nam
Modality
  • Technical Assistance
Sector
  • Transport
 
Project Name Ho Chi Minh City Integrated Public Transport Investment Program
Project Number 48260-001
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8860-VIE: Ho Chi Minh City Integrated Public Transport Investment Program
Technical Assistance Special Fund US$ 600,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Transport / Urban public transport

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The Investment Program will support the development of an efficient, integrated and sustainable public transport system for Ho Chi Minh City (HCMC) in Viet Nam. It will improve the extent and connectivity between bus systems, proposed Mass Rapid Transit (MRT) network and other modes of public and private transport, and strengthen urban transport policies and regulations in the city. By contributing to the overall public transport system, the investment program will support the objective of the HCMC's Urban Transport Master Plan (HUTMP) to increase the use of public transport and reduce dependency on private vehicles. Investments are expected to include MRT, bus rapid transit (BRT), multimodal interchange, other public transport integration and traffic works and services improvements. Support will be provided for transport planning, institutional and public transport policy reform and capacity development.
Project Rationale and Linkage to Country/Regional Strategy

The Government of Viet Nam is planning and implementing major public transport infrastructure investments intended to induce a substantive modal shift from private transport to public transport modes. Currently two MRT lines are being prepared in HCMC and four lines in Ha Noi, with all expecting to be operating by 2020. The Viet Nam Socio-Economic Development Plan for 2011-2015 supports investment in urban public transport systems to promote economic growth and protect the environment through a low carbon growth path. ADB's Viet Nam Country Partnership Strategy 2011-2015 supports the Government's program to improve urban transport infrastructure, including the proposed investment program.

HCMC is the largest city in Viet Nam, with a greater urban area population of more than 9.0 million that is expected to grow to 13.8 million by 2025. Urban transportation is dominated by private vehicles, mostly motorcycles, which account for 85% of all vehicles. The dominance of private vehicle use, combined with an inadequate road system, creates severe congestion and low travel speeds on many routes. The city's urban transport problem is worsening as incomes rise and many Vietnamese are able to shift from motorcycles to cars.

The rapid growth of private vehicle traffic is partly due to HCMC's inadequate public transport system. Public transport meets less than 10% of total transport demand in the city and consists of a poorly integrated, inefficient bus network that cannot compete with transportation by motorcycles and cars. Poor institutional arrangements for operating bus routes and unreliable service limits ridership. In addition, bus fares are kept low through heavy government subsidies. Planning, management, and control of traffic in the city are weak, and few policies or regulations exist that seek to reduce reliance on private vehicles or encourage the use of public transit. Even the pedestrian walkways are often congested, frequently because they are obstructed by poorly regulated motorcycle parking and other unauthorized private use.

HCMC is addressing these problems through the development of a city-wide mass transit system under the HUTMP, which also seeks to reduce greenhouse gas emissions, other pollution and otherwise improve the urban environment. Two MRT lines and one BRT line are currently under development. MRT Line 2 is being financed by ADB and is expected to be operational in 2020. If an expanded public transport network is to be financially and economically viable, integrated development is needed for all modes of public transit and private vehicle transport; to ensure that it is attractive, accessible, and affordable for the city's residents.

The investment program will compliment ongoing and proposed development partner projects for the MRT, BRT and bus systems (refer footnote 4). The lessons from ongoing ADB investments in HCMC for MRT development indicate that complex projects are subject to multiple external factors, so a longer phased implementation approach is required, and associated works need to be implemented in parallel but with more flexibility in timing. Additionally, construction costs in this new subsector will have a higher degree of uncertainty until contract experience is gained and local industry capacity and skills are further developed.

The Project proposes to utilize the MFF modality to extend ADB financing to support the HUTMP, which has been assessed to be the most appropriate modality. The MFF provides the Government the secure commitment to long term financing for public transport development in order to meet HUTMP strategic objectives. This allows ADB to enter into a partnership with the HCMC PC to support the long term development of the HCMC urban transport system, which will need substantive investments for the next 20 years. Critically it provides a basis for strong ADB assistance in the development of key policy and regulatory reform. The MFF allows necessary advance action for project preparation, including documentation, prequalification and bidding to be planned where large investments are required at later project stages. Within the total financing it provides flexibility to modify the timing and amount, as well as to ensure the ADB financing can be linked to available resources within ADB and those from cofinanciers. All the conditions for use of an MFF are in place, with a strategic context, roadmap, policy framework under the HUTMP, investment program and financing plan.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design National, city, and commune government officials, transport/metro implementation and operation authorities, development partners, steering committee for poverty reduction, small business owners, potential affected community representatives, and relevant civil society organizations will be closely involved in the Investment Program design preparation. During the preparation of a resettlement plan, individual and group consultations will be fielded to consult with the potential affected people across a range of sites in urban areas. A participatory approach will be used to determine the location and design of some subproject features to ensure better public transport accessibility measures for local communities.The ensuing project will empower poor people through provision of affordable transport service. For those with mobility impairments, the project design features will provide them with enhanced mobility compared to other forms of transport. The project design during the PPTA stage will incorporate the results of consultations with transport users from a variety of profiles, including poor and other marginalized groups, especially on issues of station and ancillary infrastructure design and fare regimes.
During Project Implementation

TA became effective on 6 November 2015. Since 2015, ADB has been consulting with the implementing agencies (IAs), the Department of Transport (DOT) of HCMC People's Committee (HCMC PC) and the Management Authority for Urban Railways (MAUR) and potential cofinanciers, to develop an updated TA work program and schedule while considering the delay of TA effectiveness, funding approval process for consulting service for Front-End Engineering Design (FEED) Preparation and Implementation Support for MRT Line 5 (hereafter FEED consulting service) under Loan 2982 Project Preparation and Start-up Support Facility.

By December 2015, MAUR, DOT and ADB had agreed to the PPTA scope. Because the scope of BRT from Ben Thanh to An Suong had not been included in the HUTMP, DOT decided to exclude the BRT from this investment. In addition, HCMC PC decided not to implement HCMC Traffic Control Center using ODA resources. Hence, only MRT Line 5 Stage 1 and MRT Line 5 Integration have been considered by ADB in the scope.

During the Country Programming Mission in early 2016, as it had become clear that the MRT Line 5 Project could not be completed within the 10-year availability period limit of the MFF modality, HCMC PC, Ministry of Planning and Investment (MPI) and ADB agreed to change the modality into separate stand-alone projects. The current pipeline includes the MRT Line 5 Project in the 2020 longlist of the 2018-2020 COBP.

The recruitment of FEED consulting service has been delayed due to the prolonged funding approval process and development of a request for proposal. Contract award is expected in 2018. The outputs of FEED consulting service will be used to formulate the MRT Line 5 Project.

The IAs and ADB identified two phases: (i) Phase 1 supports MAUR in recruiting FEED consulting service (2016-2018: ongoing); (ii) Phase 2 formulates the MRT Line 5 Project and MRT Line 5 Integration Project (2019-2021). During the activities, DOT and MAUR with the support of PPTA consultants will carry out necessary stakeholder consultation to complete FEED consulting service and due diligence for the MRT Line 5 Project and MRT Line 5 Integration Project.

Business Opportunities
Consulting Services The PPTA will engage 18 person months of international and 27 person months of domestic consultants, by individual selection method for international positions and a firm for local positions. Consultant selection will be done in accordance with ADB's Consultant Guidelines (2013, as amended from time to time). The PPTA will be supported through separate consultant services to address climate change adaptation.
Responsible ADB Officer Mizusawa, Daisuke
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Ho Chi Minh City People's Committee
86 Le Thanh Ton Street, Ben Nghe Ward,
District 1, Ho Chi Minh City
Viet Nam
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 18 Dec 2014
Last Review Mission -
Last PDS Update 28 Mar 2018

TA 8860-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2014 06 Nov 2015 06 Nov 2015 31 Jan 2018 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
600,000.00 0.00 250,000.00 0.00 0.00 0.00 850,000.00 18 Dec 2014 40,556.45

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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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

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Procurement Plan

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