Viet Nam : Climate Resilient Inclusive Infrastructure for Ethnic Minorities Project I

Project Name

Climate Resilient Inclusive Infrastructure for Ethnic Minorities Project I

Project Number

49026-004

Country / Economy

• Viet Nam

Project Status

Active

Project Type / Modality of Assistance

• Grant
• Loan

Source of Funding / Amount

Grant 0798-VIE: Climate Resilient Inclusive Infrastructure for Ethnic Minorities Project I

Source	Amount
High Level Technology Fund	US$ 2.00 million

Loan 4100-VIE: Climate Resilient Inclusive Infrastructure for Ethnic Minorities Project I

Source	Amount
Ordinary capital resources	US$ 29.00 million

Loan 4103-VIE: Climate Resilient Inclusive Infrastructure for Ethnic Minorities Project I

Source	Amount
Ordinary capital resources	US$ 29.00 million

Operational Priorities

• OP1: Addressing remaining poverty and reducing inequalities
• OP2: Accelerating progress in gender equality
• OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
• OP5: Promoting rural development and food security

Sector / Subsector

• Agriculture, natural resources and rural development / Irrigation - Rural flood protection - Rural water supply services - Water-based natural resources management

• Transport / Road transport (non-urban)

Gender

Effective gender mainstreaming

Description

The project is aligned with the following impact: inclusive socioeconomic development of Binh Dinh and Quang Nam provinces accelerated. The project will have the following outcome: social and economic status and inclusiveness of ethnic minorities communities improved.

Output 1: Transport infrastructure improved. The project will upgrade seven district and commune roads totaling about 121.8 km, which will improve connectivity and mobility of EMCs within seven districts with a total population of 206,700 of which an average of 48% belong to EMCs. The climate-resilient transport links will integrate remote rural production into market chains and processing facilities. Freight movement of acacia and high value crops will be improved. The effort of EMCs to dependably reach essential services including health, education, and markets will be reduced. The overall transport network will be much more efficient, reducing travel time for road users and especially improving access to health, education, and market services especially for women who already suffer from time poverty.

Output 2: Water resource infrastructure improved. This output will benefit about 36,300 people through the construction, upgrade, rehabilitation, or stabilization of: (i) RDWSs to provide water to approximately 18,600 people through 115 km of piped networks; (ii) an existing reservoir to support 117 ha of irrigation command area with more reliable and efficient water supply; and (iii) cultural tourism infrastructure including one river defense - 3.6 km of embankment, visitor car parking and solid waste collection in district's communities with a total population of 17,700 of which 94% are from EMCs. Activities under this output will improve communities' health by reducing the risk of water borne diseases and will particularly benefit women by reducing their time for water collection.

Output 3: Data systems for climate risk management updated. This output will provide improved access to reliable weather and climate data, in a timely and cost-effective manner, to user agencies to inform a wide range of decisions including design of climate resilient infrastructure, strengthened early warning systems, and improved disaster response. High level online technology will be employed to improve the capacity of existing data and client interfaces managed by the provincial government, to collect, archive, and share data.

Project Rationale and Linkage to Country/Regional Strategy

Viet Nam's gross domestic product growth is considered high by international standards having averaged 7% from 2016 to 2018. Gross domestic product per capita exceeded $2,500 for the first time in 2018, while it was $2,445 in QNP and $1,814 in BDP. Both provinces rely on agriculture, forestry, and fisheries which contribute 24% to BDP's economy and 15% to QNP's economy. Wood plantations, especially acacia wood, generate employment of 250,000 to 300,000 jobs to an estimated 27,000 to 35,000 households of whom over 75% belong to EMC. From 2010 to 2018 BDP and QNP achieved solid growth and economic diversification which was indicated by an annual increase in road-based freight (from 6% to 17%) and passenger movement (from 6% to 14%).

The economic progress of QNP is highly influenced by its proximity to the Da Nang deep seaport. In BDP, the Quy Nhon port provides access to higher order seaports for fish processing. BDP also has access to the central highlands and the resource-based industries there, especially acacia wood chips. Both provinces are integrated into the Asian Development Bank (ADB) supported east-west economic corridor and port access to regional markets and the north-south road and rail corridors. Coastal districts are linked to industrial zones and tourism especially in the Da Nang and Hoi An cluster in QNP and Quy Nhon in BDP and consequently are experiencing faster growth than the remote interior upland districts. Tourism related employment for the south-central coastal region currently generates approximately 400,000 jobs and is predicted to reach 700,000 by 2030, driving labor movement from the uplands to the coastal cities.

Impact

Inclusive socioeconomic development of Binh Dinh and Quang Nam Provinces accelerated

Project Outcome

Description of Outcome

Social and economic status of ethnic minorities communities improved

Progress Toward Outcome

Project became effective in June 2022. PMU consolidated, and LIC mobilized.

Implementation Progress

Description of Project Outputs

Climate-resilient transport infrastructure improved

Climate-resilient water resource infrastructure improved

Data systems for climate risk management updated

Status of Implementation Progress (Outputs, Activities, and Issues)

IFB for 1st road subproject posted.Bidding document being prepared.BD being preparedTraining to be providedTargets to be monitoredTargets to be monitored.targets to be monitored.

Geographical Location

Tinh Binh Dinh, Tinh Quang Nam

Safeguard Categories

Environment

B

Involuntary Resettlement

B

Indigenous Peoples

B

Summary of Environmental and Social Aspects

Environmental Aspects

1. The overall project is classified as Category B for environment and all subproject are required to be category B or below. The project has an environmental assessment and review framework (EARF). Initial environment examinations (IEEs) including environmental management plans (EMPs) have been prepared for the representative subprojects and are unchanged during DED. These documents were uploaded onto the ADB website before ADB staff review meeting.

2. The processing of additional subprojects will include an IEE during the feasibility stage to be contracted and completed by the executing and implementing agencies. These will be guided by the EARF and are expected to be completed prior to bidding of respective civil works packages. Further the DED consultant will also be required to provide environmental safeguard input to the design process. The approved EMP will be integrated in the bidding and civil work contracts. A subproject construction linked EMP will be produced by the contractor prior to commencement of any works including site clearance, this CEMP will detail mitigation measures to be implemented in each construction package and will be submitted to PPMU for review.

3. The project environment management system integrated in the overall project management will be set up to support for EMP implementation and ensure for safeguard requirement in loan covenant to be complied. The progress of EMP implementation will be monitored and integrated in the project quarterly report. The semiannual environment safeguard monitoring report during construction will be prepared by implementing agencies and submitted to ADB for review and uploaded on ADB's website.

4. Due diligence of compliance will be monitored.

Involuntary Resettlement

1.The overall project is classified as Category B for involuntary resettlement. All subprojects are required to be Category B or C for involuntary resettlement. The developments and improvements under the subprojects will not trigger major resettlement impacts because most of the infrastructure will be improved within existing right of ways.

2.The executing and the implementing agencies and/or PPMUs will ensure that any impacts on involuntary resettlement and indigenous peoples are carried out in accordance with the agreed REMDF and REMDPs, ADB's Safeguard Policy Statement (2009), and the Vietnamese laws and regulations on involuntary resettlement and indigenous peoples. In case of discrepancies between the government's laws, regulations, and procedures, and ADB's Safeguards Policy Statement (2009), ADB' Safeguards Policy Statement will apply.

3.As agreed between the PPCs and ADB, a combined REMDF has been prepared for each province. Two REMDPs have been prepared for two representative subprojects (one road and one water supply) in BDP during the project preparation. These REMDPs will be updated and approved by ADB to reflect any changes in the subproject after completion of DEDs and based on results of the detailed measurement survey, public consultation and replacement cost survey. REMDP for any additional subproject included during project implementation will be prepared by PPMUs following guidance of the REMDFs and will be submitted to ADB for approval and disclosing before compensation plans approval and awarding civil works contracts. The PPMUs, Lan Acquisition and Resettlement (LAR) Board at district level, and/or Center for Land Fund Development, the wards and/or communes, and relevant mass organizations will have primary responsibility for the updating and implementation of the REMDPs with the support of the consultant. As such the capacity of these bodies is of critical importance and the project must ensure appropriate capacity building assistance in the form of information, training, and consultation and mentoring.

4. Due diligence of compliance will be monitored.

Indigenous Peoples

1. ADB's Indigenous People's policy requires that under an ADB loan, the borrower/client will undertake meaningful consultation with affected Indigenous Peoples, herein referred to in the Vietnamese context as 'ethnic minorities to ensure their informed participation in (i) designing, implementing, and monitoring measures to avoid adverse impacts on them or, when avoidance is not possible, to minimize, mitigate, and compensate for such effects; and (ii) tailoring project benefits that accrue to them in a culturally appropriate manner. Consultation will be carried out in a manner commensurate with the impacts on affected communities. The consultation process and its results are documented and reflected in the REMDPs.

2.The overall project is classified as Category B for ethnic minorities and all representative and additional subprojects must be Category B. Since in many cases ethnic minorities form the overwhelming majority of the population of road subproject areas and since the project is designed to provide positive impacts for these groups, measures to mitigate negative impacts have been incorporated in the subproject REMDPs and the procedures within the REMDF that the PPMUs apply in the processing of additional subprojects.

3. Impacts on ethnic minorities in the project areas are overwhelmingly positive since the subprojects will be aimed at the overall economic and social improvement of the total population. The project will not cause physical displacement from traditional or customary lands, nor negatively impact the identity, culture, or customary livelihood system of ethnic minorities. REMDPs will ensure the inclusion of ethnic minorities and their access to project benefits. The REMDP also includes mitigation measures to address impacts on ethnic minorities, an institutional capacity development program, a grievance redress mechanism, and compliance with ADB information disclosure and consultation requirements.

4.Internal monitoring and progress reporting for indigenous peoples will be combined with resettlement land acquisition implementation and will be the responsibility of the PPMUs. At the local level, the CISB will provide support for monitoring on a regular basis.

5. Due diligence of compliance to be monitored.

Stakeholder Communication, Participation, and Consultation

During Project Design

1. Consultation: Project preparation has been conducted with stakeholder agencies in the government at provincial and district levels including the participating provinces with Department of Planning and Investments, Department of Transport, Department of Agriculture and Rural Development, Department of Industry and Trade, and Department of Finance officials, focusing on management arrangements and issues. Requirements for ensuring appropriate levels of consultation for subproject preparation and implementation have been reviewed and confirmed. Representative subproject preparation included consultation requirements involving documented evidence of inclusive consultation with all communities in the subproject area and participant information including numbers of women and men disaggregated by ethnic minority. Subproject socio-economic/gender surveys that identify vulnerable groups to provide a basis for specific consultation and participation mechanisms will be followed during implementation.

2.Participation: It was anticipated that the community will be mobilized in several different ways during subproject design, implementation and operation. During subproject design and preparation stages, community participation consisted primarily of their contribution through the consultation process, field survey and focus group discussions and direct consultation. During construction, there will be significant opportunities for active participation, particularly for the poor households who will benefit from the subproject through opportunities to participate in paid employment for unskilled workers and through connectivity and increased mobility to markets and wider services and to access reliable safe water for domestic consumption and irrigation purposes.

These participation options will be encouraged through the bidding documents which will require contractors to investigate the option of local employment whenever possible

During Project Implementation

1. Consultation: During implementation, the process of consultation will continue throughout the process for preparing and approving feasibility study for additional subprojects and the follow on DEDs for each subproject. The consultation seeks to provide community groups the opportunity to voice their views on how the subproject is to be designed, implemented, and operated. In addition, associated initiatives will be built into the design of each subproject to enhance the inclusiveness of the project activities from the perspective of social and economic integration of less well-off communities.

2.Participation: It is anticipated that the community will be mobilized in several different ways during subproject design, implementation and operation. During subproject design and preparation stages, community participation will consist primarily of their contribution through the consultation process, field survey ad focus group discussions and direct consultation. During construction, there will be significant opportunities for active participation, particularly for the poor households who will benefit from the subproject through opportunities to participate in paid employment for unskilled workers and through connectivity and increased mobility to markets and wider services and to access reliable safe water for domestic consumption and irrigation purposes.

These participation options will be encouraged through the bidding documents which will require contractors to investigate the option of local employment whenever possible

Business Opportunities

Consulting Services

4 consulting contracts

Procurement

Project will procure about 12 works contracts under OCB (1S1E) method and following ADB Procurement Policy (2017, as amended from time to time). No harmonized bidding document prepared during PPTA.

Contact

Responsible ADB Officer

khuc, huong thi lan

Responsible ADB Department

Sectors Group

Responsible ADB Division

Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)

Executing Agencies

Binh Dinh Provincial People's Committee

Timetable

Concept Clearance

07 Nov 2018

Fact Finding

10 Jun 2020 to 22 Jun 2020

MRM

01 Oct 2020

Approval

25 Aug 2021

Last Review Mission

-

Last PDS Update

26 Jul 2022

Funding

Grant 0798-VIE

Loan 4100-VIE

Loan 4103-VIE