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Viet Nam: Ho Chi Minh City Wastewater and Drainage System Improvement Project

Sovereign (Public) Project | 50107-001 Status: Active

The project will support Ho Chi Minh City People's Committee and their government to finance sound wastewater and drainage system in the remaining catchments, thereby strengthening its foundation as the socioeconomic growth pole of southern Viet Nam. The impact of the project will be improved surface water quality and drainage capacity in HCMC. The outcome will be increased wastewater and drainage collection and treatment capacity in key catchments in HCMC.

Project Details

Project Officer
Satoshi Ishii Southeast Asia Department Request for information
Country
  • Viet Nam
Modality
  • Technical Assistance
Sector
  • Water and other urban infrastructure and services
 
Project Name Ho Chi Minh City Wastewater and Drainage System Improvement Project
Project Number 50107-001
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9205-VIE: Ho Chi Minh City Wastewater and Drainage System Improvement Project
Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility US$ 5.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Water and other urban infrastructure and services / Water and other urban infrastructure and services

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will support Ho Chi Minh City People's Committee and their government to finance sound wastewater and drainage system in the remaining catchments, thereby strengthening its foundation as the socioeconomic growth pole of southern Viet Nam. The impact of the project will be improved surface water quality and drainage capacity in HCMC. The outcome will be increased wastewater and drainage collection and treatment capacity in key catchments in HCMC. Project outputs will (i) upgrade the existing combined sewer system with interceptors; (ii) construct new separate sewer pipeline systems for storm run-off and sewage, and advanced centralized wastewater treatment plants; (iii) strengthen septage management of household septic tanks by developing a desludge and collection scheme with appropriate equipment and vehicles; and (iv) capacity building and institutional strengthening of the implementing agency for medium- and long-term strategic planning for sewage and drainage, and asset construction and management skills including private sector participation, the operating agencies for operation and maintenance and climate resilient disaster management planning, and the local people for awareness raising.
Project Rationale and Linkage to Country/Regional Strategy

Ho Chi Minh City (HCMC), the largest city in Viet Nam with 8.0 million inhabitants, is the center of Viet Nam's economic activity, contributing 27% of the national gross domestic product (GDP) in 2014. Under the central government's long-term strategic vision of Socio-Economic Development Strategy (SEDS), 2011 2020 and its 5-year Socio-Economic Development Plans (SEDP), HCMC will remain the main engine of Viet Nam's urbanization and industrialization with its higher GDP growth rate over the national average.

While HCMC's growth has been underpinned by investments on basic urban infrastructure and improved water supply system, its development stands at a turning point. Weak wastewater and drainage system has become a clear bottleneck as surface water quality of inland canals and rivers has been rapidly deteriorated, raising serious public health and environmental concerns. In HCMC, the country's typical sector problems occur at the largest scale: (i) a sewer network coverage has little improved from 12% in 1997, with only 50 80% user connections even in the central districts; (ii) a sewer network predominantly uses combined collection system of sewer and storm water; (iii) only two out of twelve existing drainage catchments have the centralized wastewater treatment plants, treating less than 10% of city's domestic wastewater or only 14% of the water supplied in HCMC; and (iv) about 80% of households still rely on septic tanks with many lacking proper septage management. HCMC's low lying terrain adds technical complexities to the system adopting gravity flow for collection and transportation. Although the key regulations came into force on clarifying ownership and responsibilities of wastewater and drainage assets, and promoting financial cost recovery, weak financial basis of local governments and lack of their institutional capacity to implement the regulation cause a spiral of technical, financial and market failures in sector performance.

Viet Nam's vulnerability to climate change further exacerbates the problem. HCMC is one of the 10 cities in the world likely to confront the early impacts of climate change. The projected sea-level rise of 33 centimeters (cm) by 2050 and 100 cm by 2100 is alarming for HCMC, where 40 45% of the central districts are within 100 cm above sea-level. By 2050, twelve out of 14 wastewater related facilities will be inundated in regular flood events. The city's wastewater and drainage system faces challenges of rising sea-level and enhanced storm surges to control floods and mitigate sewage backflow.

Since 1998, $1.1 billion (in 2005 constant price) has been provided by the government of Belgium, Japan International Cooperation Agency (JICA) and the World Bank to upgrade the wastewater and drainage system in HCMC. Their interventions have been individually effective, but less coordinated. Many catchments are still left out from the support. The city's construction Master Plan does not recognize climate risk appropriately. A large financial gap must be filled by rationalized investment planning that effectively mobilizes public and private funds.

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 Ho Chi Minh City
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The project is under preparation. The consulting firm was mobilized in March 2018.
During Project Implementation The project is under preparation. The consulting firm was mobilized in March 2018.
Business Opportunities
Consulting Services In accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time), a consulting firm will be engaged, using the quality- and cost-based selection method with a quality:cost ratio of 90:10 using the full technical proposals.
Responsible ADB Officer Satoshi Ishii
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Urban Development and Water 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 14 Oct 2016
Last Review Mission -
Last PDS Update 28 Mar 2018

TA 9205-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Oct 2016 12 Jan 2018 12 Jan 2018 30 Sep 2019 15 Jan 2020 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 5,000,000.00 0.00 0.00 0.00 0.00 5,000,000.00 14 Oct 2016 469,650.67

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.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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Tenders

Tender Title Type Status Posting Date Deadline
National Wastewater and Drainage Engineer Individual - Consulting Closed 01 Aug 2017 14 Aug 2017
Feasibility Study Report Firm - Consulting Closed 14 Jun 2017 13 Jul 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Project Preparatory Technical Assistance 9205 02 Feb 2018 SCE(FRANCE) in association with FCG International, FIN(FINLAND) 5 AVENUE AUGUSTIN-LOUIS CAUCHY NANTES CE 7 FRANCE Ho Chi Minh City People's Committee Consulting Services 1,251,755.00

Procurement Plan

None currently available.