50107-002: Ho Chi Minh City Wastewater and Drainage System Improvement Project | Asian Development Bank

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

Sovereign (Public) Project | 50107-002 Status: Proposed

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
Ishii, Satoshi Southeast Asia Department Request for information
Country
  • Viet Nam
Sector
  • Water and other urban infrastructure and services
 
Project Name Ho Chi Minh City Wastewater and Drainage System Improvement Project
Project Number 50107-002
Country Viet Nam
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Ho Chi Minh City Wastewater and Drainage System Improvement Project
Ordinary capital resources US$ 400.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Water and other urban infrastructure and services - Urban flood protection - Urban policy, institutional and capacity development - Urban sanitation - Urban sewerage

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 a developing 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 Livability and climate resilience in Ho Chi Minh City improved
Outcome Wastewater and drainage collection, treatment and management capacities in key HCMC catchments improved
Outputs

1. Existing combined sewer system upgraded with interceptors

2. New pipeline system for storm run-off and sewage, and advanced centralized wastewater treatment plants constructed

3. Septage management of household septic tanks implemented

4. Capacity of implementing agencies and public awareness on sanitation enhanced

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Procurement is classified as category B. During implementation of the project preparatory technical assistance (PPTA), capacity gaps, risks, and relevant mitigating measures will be identified in relation to project-based financial management, procurement, and anticorruption policies of the executing and implementing agencies in accordance with ADB guidelines.
Procurement Procurement is classified as category B. During implementation of the project preparatory technical assistance (PPTA), capacity gaps, risks, and relevant mitigating measures will be identified in relation to project-based financial management, procurement, and anticorruption policies of the executing and implementing agencies in accordance with ADB guidelines.
Responsible ADB Officer Ishii, Satoshi
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 14 Oct 2016
Fact Finding 21 Jun 2016 to 21 Jun 2016
MRM 03 Aug 2016
Approval -
Last Review Mission -
Last PDS Update 24 Oct 2016

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

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Related Publications

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