Project Data Sheet

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.

PDS Creation Date
PDS Updated as of 30 Sep 2014

Project Name Sustainable Urban Transport for Ho Chi Minh Mass Rapid Transit Line 2
Country Viet Nam
Project/Program Number 45200-002
Status Approved
Geographical Location
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Transport
Subsector Urban public transport
Strategic Agendas Environmentally sustainable growth (ESG)
Inclusive economic growth (IEG)
Drivers of Change Gender equity and mainstreaming (GEM)
Governance and capacity development (GCD)
Knowledge solutions (KNS)
Partnerships (PAR)
Gender Equity and Mainstreaming Categories Category 2: Effective gender mainstreaming (EGM)

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan3113Asian Development Fund10,000
Loan8279ADB Clean Technology Fund48,950
Counterpart 6,050
TOTAL US$ 65,000

Safeguard Categories

For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

Environment B
Involuntary Resettlement B
Indigenous Peoples C

Summary of Environmental and Social Issues

Environmental Aspects
The project is assessed as category B for environment. The draft initial environmental examination, which has been prepared based on ADB s Safeguard Policy Statement, has been reviewed by ADB and is being revised. The approved initial environmental examination will be disclosed on the ADB website upon receipt from the HCMC People's Committee. No natural ecosystems exist in the project area, which is heavily populated. Land use is predominantly commercial or residential. The project will not involve major civil works and is not likely to result to significant adverse environmental impacts during construction and operation. Public consultations with affected people were conducted during preparation of the initial environmental examination, in compliance with ADB s information disclosure and consultation requirements. The implementing agency will ensure that the environmental management plan is included in all bid documents. A grievance redress mechanism will be established prior to commencement of site works. The construction supervision consultant will conduct environmental management training for implementing agency in monitoring and reporting and help monitor the environmental performance of contractors.
Involuntary Resettlement
The project is assessed as category B for involuntary resettlement. The 1.6 hectares of land acquisition required will affect only government-owned land. An estimated 63 roadside stalls and small shops with 77 employees near three MRT Line 2 stations will be affected, as well as two gas stations owned by the government and employing 23 people. A resettlement plan has been prepared that is consistent with ADB s Safeguard Policy Statement and relevant legislation and policies in Viet Nam. The draft resettlement plan was posted on the ADB website on 1 August 2013 and will be updated following detailed design. Affected businesses will be provided with compensation at replacement cost and transitional and relocation assistance. One workshop and nine consultation meetings in which 283 affected business owners and employees participated were conducted in December 2012, January 2013, March 2013 and July 2013. The meetings provided an overview of the project and outlined key elements of the resettlement plan, such as anticipated impacts, mitigation measures, entitlements, consultation, and the grievance redress mechanism. In July 2013, key information from the draft resettlement plan was disclosed to all 65 affected business establishments. The agreed resettlement plan will be made available in the district offices and on ADB s website. All social monitoring reports will be disclosed.
Indigenous Peoples
The project is assessed as category C for indigenous peoples safeguards. Due diligence has confirmed that there are no ethnic minority communities in the project area

Stakeholder Communication, Participation and Consultation

During Project Design
Women, students, children, and older people are more inclined to use public transport than other social groups and are expected to benefit the most from the improved transportation services and lower costs. The Women s Union has been identified as the focal point to guide the development of gender-sensitive measures. Through government community awareness program under the MRT Line 2 project, extensive public communications about this project will be made available in a timely manner to ensure that all stakeholders and interested civil society organizations can effectively participate in the consultations and meetings to be conducted.
During Project Implementation
TBD

Description

The Project will develop an integrated public transport system in six districts of Ho Chi Minh City (HCMC) that will support effective utilization of HCMC Urban Mass Rapid Transit (MRT) Line 2 . Improved public transport will facilitate connectivity and greatly enhance access to transport services in five districts of HCMC, as well as support the HCMC Urban Transport Master Plan (HUTMP) objective of increasing public transport usage to over 40% of demand and reducing dependency on private vehicles. The Project will provide infrastructure for improving accessibility to MRT2 stations, implement feeder bus links, integrated multi-modal stations with "park and ride" facilities where appropriate, infrastructure for improving accessibility to MRT2 stations as well as a parking plan for the city. Project management and institutional capacity building measures, together with expected policy and regulatory reforms, will also help achieve an improved public transport system and reduce GHG emissions. The project components, public transport services and other facilities will be designed to incorporate gender sensitive features that will compliment similar measures under the MRT2 project.

Project Rationale and Linkage to Country/Regional Strategy

The Government of Viet Nam is planning major public transport infrastructure investments intended to induce a substantive modal shift from private transport to public transport modes. Currently three MRT lines are being prepared in HCMCi, with all expecting to be operating by 2020. The Viet Nam Socio-Economic Development Plan for 2011-2015 supports transport sector investment to promote economic growth and protect the environment through a low carbon growth path. ADB's Viet Nam Country Strategy and Program 2012-2015 supports the Government's program to improve urban transport infrastructure and reduce transportation costs. HCMC is moving into the higher growth period of transport urbanization, shifting increasingly from heavy usage of motorcycles to cars. Private vehicles dominate urban transportation, with motorcycles being the most prevalent means at about 85% share. High private vehicle usage has resulted in severe congestion; with many major routes have travel speeds below 10 kilometers per hour and poor road safety. The situation is worsening, with transport growth around 10% and more motorbike owners convert to cars . The existing public transport system consists of a badly integrated bus network that cannot compete with private transport modes. Traffic planning and management is weak and inadequate to effectively control traffic and discourages public transport. Importantly, there are no policy and regulatory measures to reduce private transport modes nor is there an attractive public transport system that can attract people using private vehicles. HCMC People's Committee (HCMC PC) plans to develop in a MRT system with the first stage of three metro lines under implementation. In order the make the MRT lines viable, there is a need to design complimentary measures to ensure an integrated public transport system that is attractive, accessible and affordable. The Project will directly support integration of MRT2 as part of a multimodal, environmental friendly transport system to attract passengers from using individual private vehicles to urban public transport services to promote inclusive low carbon transport thus reducing greenhouse gas emissions and other environmental pollutions.

Development Impact

An integrated and sustainable public transport system in six districts of HCMC

Project Outcome

Description of Outcome
Improved access to MRT Line 2 stations and connectivity with other modes of public transport.
Progress Towards Outcome

Outputs and Implementation Progress

Description of Project Outputs
Establishment of MRT Line 2 station accessibility improvements Establishment of public transport information systems Enactment of public transport policy development program
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2013 Sep 13
Consulting Services
Four consulting service packages; CS01: Design and supervision CS02: Multi-modal demand and traffic platform CS03: Bus information sysytem and street management CS04: Urban transport sector development
Procurement
Five civil works and two equipment packages: CP01: Infrastructure and Parking 1 CP02: Infrastructure and Parking 2 CP03: Bus infrastructure, entrance and landscaping CP04: Traffic management CP05: Subway and footbridge EQ01: Accessibility improvement EQ02: Public transport measures
Procurement and Consulting Notices
http://www.adb.org/projects/45200-002/business-opportunities

Timetable

Concept Clearance 18 Oct 2011
Fact-finding 09 Jul 2013 to 16 Jul 2013
Management Review Meeting 02 Aug 2013
Approval 20 Feb 2014
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 3113 20 Feb 2014 18 Jul 2014 30 Jun 2020
Loan 8279 20 Feb 2014 18 Jul 2014 30 Jun 2020

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
27 Nov 2014 Loan 3113 0 0 0.00%
27 Nov 2014 Loan 8279 0 0 0.00%
Cumulative Disbursements
27 Nov 2014 Loan 3113 0 0 0.00%
27 Nov 2014 Loan 8279 0 0 0.00%

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 3113
Loan 8279

Contacts and Update Details

Responsible ADB Officer Robert Valkovic (rvalkovic@adb.org)
Responsible ADB Department Southeast Asia Department
Responsible ADB Divisions Transport and Communications Division, SERD
Executing Agencies

Links

Project Website http://www.adb.org/projects/45200-002/main
List of Project Documents http://www.adb.org/projects/45200-002/documents