Comprehensive Socioeconomic Urban Development Project in ... · Summary of Gender Equality Results and Achievements 46 . BASIC DATA A. Loan Identification 1. Country Viet Nam ...

Completion Report

Project Number: 41462-013 Loan Number: 2826 July 2018

Viet Nam: Comprehensive Socioeconomic Urban

Development Project in Viet Tri, Hung Yen, and

Dong Dang

This document is being disclosed to the public in accordance with ADB’s Public Communications Policy 2011.

CURRENCY EQUIVALENTS

Currency Unit – dong (D)

At Appraisal At Project Completion (25 October 2011) (30 June 2017)

D1.00 = $0.00004774 $0.00004399 $1.00 = D20,945 D22,730

ABBREVIATIONS ADB – Asian Development Bank CARC – Compensation, Assistance, and Resettlement Committee CPC – City People’s Committee DMF – design and monitoring framework DMS – detailed measurement survey EMCs – external environment and resettlement monitoring consultants EIRR – economic internal rate of return GAP – gender action plan GMS – Greater Mekong Subregion IRP – income restoration program KEXIM – Export–Import Bank of Korea LIC – loan implementation consultant NSEC – North-South Economic Corridor O&M – operation and maintenance PMU – project management unit PPC – Provincial People’s Committee PRC – People’s Republic of China SDR – special drawing right SPS – Safeguard Policy Statement

WEIGHTS AND MEASURES km – kilometer m – meter m2 – square meter m3 – cubic meter

NOTES

(i) The fiscal year (FY) of the Government of Viet Nam ends on 31 December. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2018 ends on 31 December 2018.

(ii) In this report, “$” refers to United States dollars.

Vice-President Stephen P. Groff, Operations 2 Director General Ramesh Subramaniam, Southeast Asia Department (SERD) Director Eric Sidgwick, Viet Nam Resident Mission, SERD Team leader Do Nhat Hoang, Senior Urban Sector Officer, SERD Team members Dinh Kieu Oanh, Associate Social Development Officer (Safeguards),

SERD Nguyen Thanh Giang, Senior Social Development Officer (Gender),

SERD Steven Schipani, Unit Head, Project Administration

Tran Thi Bich Dung, Project Analyst, SERD 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.

CONTENTS

Page

BASIC DATA i

I. PROJECT DESCRIPTION 1

II. DESIGN AND IMPLEMENTATION 2

A. Project Design and Formulation 2 B. Project Outputs 3 C. Project Costs and Financing 4 D. Disbursements 4 E. Project Schedule 5 F. Implementation Arrangements 5 G. Consultant Recruitment and Procurement 6 H. Gender Equity 7 I. Safeguards 7 J. Monitoring and Reporting 8

III. EVALUATION OF PERFORMANCE 8

A. Relevance 8 B. Effectiveness 9 C. Efficiency 9 D. Sustainability 9 E. Development Impact 10 F. Performance of the Borrower and the Executing Agency 10 G. Performance of Cofinancier 11 H. Performance of the Asian Development Bank 11 I. Overall Assessment 11

IV. ISSUES, LESSONS, AND RECOMMENDATIONS 12

A. Issues and Lessons 12 B. Recommendations 12

APPENDIXES

1. Design and Monitoring Framework 14

2. Project Outputs 18

3. Project Cost at Appraisal and Actual 20

4. Project Cost by Financier 21

5. Disbursement of ADB Loan Proceeds 23

6. Contract Awards of ADB Loan Proceeds 24

7. Status of Compliance with Loan and Project Covenants 25

8. Economic and Financial Reevaluation 31

9. Land Acquisition and Resettlement 40

10. Summary of Gender Equality Results and Achievements 46

BASIC DATA A. Loan Identification

1. Country Viet Nam 2. Loan number and financing source 2826, Concessional Ordinary Capital

Resources 3. Project title Comprehensive Socioeconomic Urban

Development Project in Viet Tri, Hung Yen, and Dong Dang

4. Borrower Socialist Republic of Viet Nam 5. Executing agency Provincial People’s Committees of

Phu Tho, Hung Yen, and Lang Son 6. Amount of loan SDR45,017,000 ($70.0 million equivalent) 7. Project completion report number 1682 8. Financing modality Sovereign project lending

B. Loan Data

1. Appraisal – Date started – Date completed

5 August 2010 10 August 2010

2. Loan negotiations – Date started – Date completed

29 September 2011 30 September 2011

3. Date of Board approval 8 December 2011 4. Date of loan agreement 9 March 2012 5. Date of loan effectiveness – In loan agreement – Actual – Number of extensions

7 June 2012 (90 days after signing) 10 July 2012 1

6. Project completion date – Appraisal – Actual

31 December 2016 30 June 2017

7. Loan closing date – In loan agreement – Actual – Number of extensions

30 June 2017 30 June 2017 0

8. Financial closing date – Actual

26 February 2018

9. Terms of loan – Interest rate – Maturity (number of years) – Grace period (number of years)

1.0% per annum during grace period 1.5% per annum thereafter 32 8

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10. Disbursements

a. Dates

Initial Disbursement 12 August 2013

Final Disbursement 23 January 2018

Time Interval 53 months

Effective Date 10 July 2012

Actual Closing Date 30 June 2017

Time Interval 60 months

b1. Amount ($ million)

Category

Original Allocation

(1)

Increased during

Implementation (2)

Cancelled during

Implementation (3)

Last Revised

Allocation (4=1+2–3)

Amount Disburse

d (5)

Undisbursed Balance (6 = 4–5)

1. Works 43.65 8.96 0.00 52.61 53.19 (0.58) 1A: Viet Tri 19.25 7.15 0.00 26.40 27.48 (1.07) 1B: Hung Yen 6.03 1.09 0.00 7.12 6.55 0.56 1C: Dong Dang 18.37 0.72 0.00 19.09 19.16 (0.07) 2. Equipment 2.74 1.33 0.00 4.07 3.96 0.11 3. Consulting

services 4.49

0.28 0.00 4.78 3.99 0.79

4. Incremental costs

2.32 (1.25) 0.00 1.06 0.37 0.69

5. Interest during construction

0.69 (0.07) 0.00 0.61 0.61 0.00

6. Unallocated 16.11 (16.11) 0.00 0.00 0.00 0.00 Total 70.00 (6.86) 0.00 63.13 62.12 1.01

b2. Amount (SDR million)

Category

Original Allocation

(1)

Increased during

Implementation (2)

Cancelled during

Implementation (3)

Last Revised

Allocation (4=1+2–3)

Amount Disburse

d (5)

Undisbursed Balance (6 = 4–5)

1. Works 28.07 9.53 0.00 37.61 38.01 (0.40) 1A: Viet Tri 12.38 6.46 0.00 18.85 19.58 (0.74) 1B: Hung Yen 3.88 1.19 0.00 5.07 4.69 0.38

1C: Dong Dang 11.81 1.88 0.00 13.69 13.74 (0.04)

2. Equipment 1.76 1.15 0.00 2.91 2.84 0.07 3. Consulting

services 2.89

0.44 0.00 3.33 2.78 0.54

4. Incremental costs

1.49 (0.76) 0.00

0.72 0.25 0.47

5. Interest during construction

0.45 0.00 0.00

0.44 0.44 0.00

6. Unallocated 10.36 (10.36) 0.00 0.00 0.00 0.00 Total 45.02 0.00 0.00 45.01 44.32 0.68

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C. Project Data

1. Financing plan ($ million)

Cost Appraisal Estimate Actual

Implementation cost Borrower financed 31.81 21.63 ADB financed 69.31 61.51 KEXIM financed 13.39 13.39a Total implementation cost 114.51 96.53 Interest during construction costs Borrower financed 0.00 0.00 ADB financed 0.69 0.61 KEXIM financed 0.13 0.13a Total interest during construction cost 0.82 0.74

ADB = Asian Development Bank, KEXIM = Export–Import Bank of Korea. a Including provisional data of the KEXIM loan, which was extended to July 2020.

2. Cost breakdown by project component ($ million)

Component Appraisal Estimate Actual

A. Investment Costs 1. Construction and civil works 57.27 73.71a 2. Equipment 5.09 4.36 3. Land acquisition and compensation 17.00 13.71 4. Incremental costs 2.75 0.37 5. Implementation support, capacity development

and awareness building 5.26 4.39

Subtotal A 87.37 96.53 B. Contingencies 27.14 0.00 C. Financial Charges During Implementation 0.82 0.74

Total 115.33 97.27 Note: Numbers may not sum precisely because of rounding. a including provisional data of KEXIM loan which was extended to July 2020

3. Project schedule

Item Appraisal Estimate Actual

Date of contract with consultants Q2 2012 Q2 2013 Completion of engineering designs Q4 2012 Q1 2013 Civil works contract Date of award Q4 2013 Q2 2014 Completion of work Q4 2016 Q2 2017 Equipment and supplies Dates First procurement Q1 2013 Q2 2014 Last procurement Q4 2013 Q2 2016 Completion of equipment installation Q4 2016 Q2 2017 Start of operations Completion of tests and commissioning Q4 2016 Q2 2017 Beginning of start-up Q4 2016 Q3 2017 Other milestonesa ADB loan closing date 30 June 2017 30 June 2017 KEXIM loan closing date 30 June 2017 31 July 2020 Project completion date 31 December 2016 30 June 2017a

ADB = Asian Development Bank, KEKIM = Export–Import Bank of Korea, Q = quarter. a KEXIM-financed components are expected to be completed in January 2020.

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4. Project performance report ratings

Implementation Period Single Project Rating

From 1 January 2013 to 31 December 2013 Actual problem From 1 January 2014 to 31 December 2014 On track From 1 January 2015 to 31 December 2015 Potential problem From 1 January 2016 to 31 December 2016 On track From 1 January 2017 to 30 June 2017 On track

D. Data on Asian Development Bank Missions

Name of Mission Date No. of

Persons No. of

Person-Days Specialization of Members

Fact-finding mission 9–20 May 2011 7 25 a, c, e, f, g, k, m Appraisal mission 5–10 August 2011 7 35 e, f, g, I, k, m, n Loan inception mission 10–14 Sep 2012 2 8 e, i Loan review mission 1 15–17 Jul 2013 7 7 e, f, g, k, m Loan review mission 2 9–11 Sep 2013 5 9 e, f, g, k, m Safeguards review mission 23–25 Sep 2013 2 4 m Loan review mission 3 7–9 Jan 2014 4 8 e, f, m Special project administration mission 1 17–18 Apr 2014 1 1 e Loan review mission 4 22–26 Dec 2014 4 16 e, f, m Special project administration mission 2 21 Apr 2015 1 1 e Midterm review mission 23–26 Nov 2015 5 15 e, f, g, m Special project administration mission 3 5–6 May 2016 1 2 e Loan review mission 5 14–16 Jun 2016 4 4 e, f Loan review mission 6 31 Oct–4 Nov 2016 6 24 e, f, g, m Loan review mission 7 13–17 Feb 2017 3 12 e, f, m Project completion review 5–9 Jun 2017 5 20 e, f, g, m, o

a = project economist; b = control officer; c = consultant; d = counsel; e = project officer; f = resettlement specialist; g = assistant project analyst; h = office of the special projects facilitator; i = project implementation officer; j = portfolio and project financial management officer; k = head, portfolio management and harmonization; l = project implementation officer; m = social sector specialist; n = project coordinator; o = staff consultant.

I. PROJECT DESCRIPTION 1. The project was designed to contribute to more balanced regional development in the North–South Economic Corridor (NSEC). Its expected impact was the development of Viet Tri, Hung Yen, and Dong Dang towns as economic centers in northern Viet Nam. The expected outcome was improved urban infrastructure and municipal services in Viet Tri, Hung Yen, and Dong Dang. Cities selected for project assistance were Viet Tri in Phu Tho Province, Hung Yen in Hung Yen Province, and Dong Dang in Lang Son Province. All are located along the NSEC and are classified secondary cities. 2. Viet Tri, the capital of Phu Tho Province, is located about 84 kilometers (km) northwest of Ha Noi, close to the administrative border of Greater Ha Noi. Viet Tri demonstrated strong potential to become a logistics hub in northern Viet Nam, with good access to various transport modes. Three rivers (Red River, Da River, and Lo River) merge at Viet Tri and form the Red River, which flows through Ha Noi. The city is located along the railway and expressway connecting Noi Bai international airport and Lao Cai, a city bordering the People’s Republic of China (PRC). The distance from Viet Tri to Noi Bai international airport is about 50 km. Strategic planning and investments in public infrastructure development were necessary for Viet Tri to grow as a regional logistics hub for the efficient distribution of goods.

3. Hung Yen is the capital of Hung Yen Province, located between Ha Noi and Hai Phong (62 km to Ha Noi and 108 km to Hai Phong). Hung Yen city has an old town with many historic relics, as the city was an important center for commerce and trade through its river port during the 15th–16th century. The government had started preserving old buildings with historical value and improvements in access and environmental infrastructure in the old town to attract tourists. The university zone was another area for development, as Chu Van An University was under construction and Transport University and Foreign Trade University were preparing to open campuses in Hung Yen. 4. In Dong Dang, the Huu Nghi border gate handled about 70% of freight and passenger transit between Viet Nam and the PRC along the NSEC. Trade value totaled $859 million and the volume of passenger transits was 710,606 in 2010. During 2000–2010, the average annual trade growth was 18% and the annual passenger transit growth was 15%. The trade volume in 2020 was expected to reach about 10.2 million tons of various goods worth $2.78 billion and passenger traffic was expected to reach 1.4 million in the same year. It was clear that the capacity of the Huu Nghi border gate would be unable to handle the expected increases in trade and passengers. 5. The Asian Development Bank (ADB) financed seven project outputs. Parallel financing from the Export–Import Bank of Korea (KEXIM) supported one output. Output 1 was to improve and construct two new sections of Viet Tri’s ring road from the northern dyke road to the southern dyke road and build a new road from the Noi Bai–Lao Cai expressway to the city center. Output 2 was to increase solid waste collection volumes from 120 tons/day to 150 tons/day by providing equipment to expand household solid waste collection, transport, and storage. Output 3, financed by KEXIM, was to construct Hung Yen wastewater treatment plant and sewage network, including three pumping stations and maintenance machinery and equipment.

6. Output 4 was to upgrade narrow, unpaved roads and associated infrastructure in Hung Yen old town. Output 5 was to construct a new access road to serve Pho Hien University. 7. Outputs 6 and 7 were to provide integrated support for upgrading Huu Nghi international border gate with the PRC, including customs and immigration facilities, roads, parking, and

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drainage to protect the busy border market from flooding. Output 8 supported project management, capacity development, and awareness building to ensure that project implementation fully complied with ADB and government policies. It was also to design and conduct urban development capacity building programs; raise public awareness about health, environment, and traffic safety issues; and prepare urban master plans. 8. The rationale for undertaking the project was sound. It supported the government’s decentralization policy, targeting infrastructure investments in secondary cities to help attract residents and reduce migration to large metropolitan areas. Promoting growth in secondary cities was expected to foster more balanced regional development.

II. DESIGN AND IMPLEMENTATION A. Project Design and Formulation 9. The project design was relevant at appraisal and at closing. It was formulated in line with Viet Nam’s Socio-Economic Development Plan, 2006–2010,1 which envisioned Viet Nam’s transformation to an industrialized country by 2020. Since the early 2000s, the Greater Mekong Subregion (GMS) Economic Cooperation Program has promoted transforming GMS transport corridors into full-fledged economic corridors. 10. The project design was also consistent with ADB’s country partnership strategy for Viet Nam, 2012–20152 and ADB’s regional cooperation operations business plan for the GMS, 2011–2013, which emphasized the need for infrastructure investment in small and medium-sized cities, particularly those along the GMS economic corridors.3 Project formulation was guided by two of the three priority areas in ADB’s sector assessment, strategy, and road map for urban development in Viet Nam: (i) development of corridor cities and towns to contribute to the transformation of GMS regional transport corridors into economic corridors, and (ii) development of secondary cities and towns as regional economic hubs to foster balanced regional development and strengthen rural–urban linkages.4

11. In the Orientation Master Plan for Urban Development to 2020,5 the government continues to divert rural migration away from large cities through the development of model secondary cities and by strengthening rural–urban linkages. As expected, increased traffic and trade along the NSEC is contributing to urban development in the corridor.

12. ADB and the government provided sufficient resources to formulate the project. In mid- 2010, ADB and the government appointed an international consultant firm to assist with project preparation. In June 2011, the project feasibility study, finalized under Comprehensive Socioeconomic Urban Development Project - Viet Tri, Hung Yen and Dong Dang Technical Assistance,6 was deemed adequate to proceed with project appraisal. This feasibility study was prepared in close consultation with central government officials, representatives of the people’s committees of the provinces and towns in which the project would be implemented, and local

1 Government of Viet Nam. 2006. The Five-Year Socio-Economic Development Plan, 2006–2010. Ha Noi. 2 ADB. 2012. Country Partnership Strategy: Viet Nam, 2012–2015. Manila. 3 ADB. 2010. Regional Cooperation Operations Business Plan: Greater Mekong Subregion, 2011–2013. Manila. 4 Independent Evaluation Department. 2009. Sector Assistance Program Evaluation: Viet Nam—Urban Services and

Water Supply and Sanitation Sector. Manila: ADB. 5 Government of Viet Nam. 1998. Orientation Master Plan for Urban Development to 2020. Ha Noi. 6 Project Preparatory Technical Assistance 7516-VIE: Comprehensive Socioeconomic Urban Development Project in

Viet Tri, Hung Yen and Dong Dang, approved in April 2010 and closed in October 2013.

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communities. Lessons learned from previous projects financed by ADB and other development partners were sufficiently incorporated into the project design to minimize start-up delays. These included early recruitment of project management and detailed design consultants. Minor changes in scope during implementation, such as a reduction in the Huu Nghi border gate parking area from 5.2 hectares to 1.9 hectares (based on detailed design), increased the design relevance. 13. The outcome performance targets and indicators in the design and monitoring framework (DMF) were adequate, relevant, measurable, and clearly linked to project activities. The DMF provided benchmarks upon which to measure objectively verifiable indicators, although the outcome indicator of increased tourist arrivals in Hung Yen province could only partially be attributed to the project. Appendix 1 shows the project framework, performance targets, and the achievements at completion. B. Project Outputs 14. All ADB-financed outputs identified during appraisal were achieved satisfactorily within the original time frame. Output achievements at completion are summarized below and detailed in Appendix 2. 15. Output 1: Viet Tri urban roads constructed and improved. As envisaged, three roads were constructed: (i) Phu Dong Road, comprising a 4.1 km road section from the D8 intersection to the intersection with Truong Chinh Road, providing a new city entrance that connects the city center to the Noi Bai–Lao Cai Expressway; (ii) Truong Chinh Road, comprising a 4.4 km road section from National Highway 2 to Lo River Dike; and (iii) Thuy Van Road, comprising a 6.0 km road section connecting National Highway No. 2 with the Red River Dyke via the Thuy Van Industrial Zone, which forms the south-west section of the city ring road. During the construction 34% of unskilled labor force in civil work were women. 16. Output 2: Viet Tri fleet and equipment provided. This output provided five 5.0-ton capacity compactor trucks, six 3.5-ton capacity compactor trucks, and 1,000 hand carts for local area garbage collection. 17. Output 3: Hung Yen wastewater treatment and sewer network built. This output financed by Export-Import Bank of Korea (KEXIM) was not yet achieved as of project completion. The main reason was the delayed selection of treatment technology by Hung Yen Provincial People’s Committee (PPC), which prevented the completion of the wastewater treatment plant and associated sewage network detailed design. Hung Yen PPC and KEXIM eventually agreed to use stabilization ponds for the wastewater treatment plant and approved detailed designs in April 2016. The works contract was signed on 16 January 2017. The treatment plant and sewage network are under construction and expected to be completed by 31 January 2020.7 The KEXIM loan was extended until 31 July 2020 to accommodate the delay.

18. Output 4: Hung Yen infrastructure in old town upgraded. This output improved 5.3 km of roads, associated drainage and sewerage mains, water supply pipes, and underground utility ducts around Pho Hien Ancient Street. Utility companies will use the ducts to conceal overhead wiring, which will help conserve the area’s historic character. Fifty percent of community facilitators of hygiene awareness raising activities were women.

7 The KEXIM-financed wastewater treatment plant and sewer network were about 50% physically complete as of 1

June 2018.

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19. Output 5: Hung Yen urban road constructed. This output constructed the 3.3 km Pho Hien University road and associated drainage to serve the university campus. 20. Output 6: Dong Dang–Huu Nghi border gate facilities improved. This output (i) constructed 2.6 km of main and bypass roads with associated drainage, landscaping, a 1.9-hectare parking area, the 9,980 square meter (m2) Huu Nghi border gate building, and 133 m connecting roads; and (ii) organized 10 training workshops on gender equality, HIV/AIDS and sexual transmitted diseases prevention and anti-human trafficking with 613 participants including 499 women. Minor changes in the Huu Nghi border gate parking area from 5.2 hectares to 1.9 hectares (based on detailed design) increased the design relevance. 21. Output 7: Dong Dang drainage and flood protection improved. The project constructed 0.73 km of masonry flood protection and 4.6 km of drainage pipelines in Dong Dang town. Additional operation and maintenance (O&M) equipment (sludge trucks and drain pumps) was provided to support the sustainability of the drainage and waste removal services. Improved flood protection and drainage eliminated business disruption, enabling 183 women-owned business to operate year-round.

22. Output 8: Strengthened efficiency and management capacity of local authorities. Performance targets were substantially achieved. This output helped provincial project management units (PMUs) ensure that project implementation fully complied with ADB policies and operational requirements by supporting project management, detailed engineering design, procurement, and safeguard compliance. It also helped increase public health and sanitation awareness among local communities. Implementing agencies have 167 staff with knowledge of planning and urban management, financial management, cost recovery, and O&M procedures for project works. The Women’s Union and consultants provided capacity development through 42 training courses in three project cities. C. Project Costs and Financing 23. At appraisal, the ADB loan was SDR45,017,000 ($70 million equivalent). The total project cost was estimated at $115.33 million, with ADB to finance $70 million including implementation costs and interest during construction. The government was to finance $31.81 million to cover taxes and duties and the full cost of resettlement and land acquisition. KEXIM was to finance $13.52 million, including implementation costs and interest during construction. 24. On the ADB loan closing date, the total project cost was estimated at $97.27 million. ADB financing totaled $62.12 million, government financing $21.63 million, and the estimated KEXIM financing was $13.52 million. The total project cost was lower than estimated mainly because resettlement and land acquisition and incremental costs were less than appraised. Although the total project cost was lower than envisaged, all original outputs were substantially achieved. Appendix 3 shows the comparison of project costs at appraisal and completion, while Appendix 4 presents the estimated total project costs by financier. D. Disbursements 25. Loan proceeds were disbursed in accordance with ADB’s Loan Disbursement Handbook 2010 (as amended from time to time). Project funds were disbursed to three advance accounts, one for each of the three PMUs. Disbursement was low from 2011 to 2013 because of the slow physical progress. In 2014, the disbursement rate rose with increased project progress but was

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still slower than projected. The ADB project team worked with PMU staff to explain ADB disbursement procedures, including how to prepare and submit withdrawal applications and manage the advance accounts. The disbursement rate increased significantly from 2015 to 2017 after the PMUs were familiarized with ADB procedures and physical progress accelerated. The direct payment procedure was used for consulting services, works, and goods payments. The statement of expenditure procedure was used for incremental project management costs. The advance account ceiling provided sufficient headroom to enable timely payments for small expenditures. ADB’s statement of expenditure review conduced in 24 August 2017 found the advance account was properly managed. 26. In 2015, the government imposed an annual disbursement ceiling on all official development assistance-financed projects. ADB’s Viet Nam Resident Mission helped the project adapt to this situation by assisting PMUs to prepare accurate annual disbursement projections and coordinated with PPCs and the Ministry of Planning and Investment to strengthen budget planning. These efforts resulted in timely budget allocations that matched actual project needs. The resident mission also followed up regularly with the PMUs to ensure timely and accurate payments to contractors, suppliers, and consultants. As a result, the required budget was allocated and disbursed before the loan closing date, and all outstanding payments were made within the winding-up period. Meanwhile, contractors demonstrated adequate financial capacity to implement works contracts without significant delays. Appendix 5 shows projected and actual disbursements of the ADB loan proceeds. E. Project Schedule 27. The project was approved by ADB’s Board of Directors on 9 November 2011, signed with the borrower on 9 March 2012, and declared effective on 19 August 2012. To minimize start-up delays, the project included advance actions to prepare detailed engineering designs (financed by counterpart funds) and recruit the LIC. The detailed designs were completed in December 2012 as scheduled, while consultant recruitment was completed 6 months behind schedule. The contract with the consulting firm was signed on 19 June 2013. The LIC was able to mobilize all the required international and domestic consultants quickly and carry out the terms of reference successfully. Consulting services responded adequately to the needs of each subproject, following each PMU’s request. The inclusion of advance actions in the project design is considered a key factor that minimized start-up delays and led to the timely achievement of most outputs within the ADB loan’s original time frame. In general, the procurement, construction, and supply of goods financed by ADB was completed and the loan was closed as originally scheduled on 30 June 2017. The financial closing was on 26 February 2018 for the EAs to submit the final withdrawal applications and for ADB to complete the reconciliation of the loan account. However, the construction of the wastewater treatment plant and associated network in Hung Yen, under parallel KEXIM financing, was ongoing at project completion (para. 17). F. Implementation Arrangements 28. The implementing arrangements approved by ADB and the government at appraisal were appropriate and did not change during implementation. Phu Tho, Hung Yen, and Lang Son PPCs acted as provincial executing agencies. Each province had a professional project management unit with permanent staff to implement investment projects financed by government and official development assistance. These had considerable experience implementing nationally funded projects so were designated project implementing agencies by the respective PPCs. Each implementing agency established a PMU with at least 10 full-time staff dedicated to the project.

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These arrangements worked well and were considered effective by ADB, the borrower, and the executing agencies.

29. Output 3 followed KEXIM’s procurement and project management procedures. Safeguard documents complied with KEXIM’s requirements and ADB’s Safeguard Policy Statement (SPS, 2009). KEXIM appraised the feasibility study of Hung Yen wastewater treatment facilities on 30 December 2011 and signed the loan agreement with the government on 26 July 2013. Although the implementation arrangements did not include requirements for joint ADB–KEXIM review missions or other specific coordination mechanisms, ADB and KEXIM staff exchanged information to monitor project progress and resolve issues.

G. Consultant Recruitment and Procurement 30. Consultant services included (i) consultants for detailed design; (ii) construction supervision consultants; (iii) the LIC; (iv) external environment and resettlement monitoring consultants (EMCs); and (v) an independent auditor. The consultants for detailed design and construction supervision were funded by counterpart funds. Recruitment of construction supervision consultants was completed before civil works contractors mobilized, enabling timely and effective supervision. ADB-financed consultants included the LIC, EMCs, and an independent auditor. Consultant recruitment followed ADB’s Guidelines on the Use of Consultants 2010 (as amended from time to time). The use of a single LIC for three cities had the advantage of lower costs and consistent approaches across subprojects for training in capacity building, procurement quality control, and safeguard documents. The performance of the LIC, EMCs, and auditor is rated satisfactory. The LIC comprised international and national consultants, who reviewed detailed designs prepared by local designers; assisted the PMUs to address design flaws; and provided overall project management support. The LIC also assisted PMUs to prepare bidding and safeguard documents that were acceptable to ADB; and with contract management and the implementation of public awareness campaigns. The EMCs provided timely and quality external monitoring reports, and the auditor provided quality audit reports on time and in accordance with their terms of reference. 31. Goods, works, and related services under ADB financing were procured in accordance with ADB’s Procurement Guidelines 2010 (as amended from time to time). The contract packaging arrangements from appraisal were implemented without changes. The procurement methods used were international competitive bidding and national competitive bidding for works and goods, and quality- and cost-based selection for consulting services. The first bidding documents for each type of contract, once approved by ADB, were used as the master bidding documents for other subprojects to ensure consistent quality and reduce the time used for preparation. The first national competitive bidding works contract was awarded on 10 January 2014, while the first international competitive bidding contract was awarded on 3 March 2014, about 1.5 years after the loan became effective. The contract awards were low between 2011 and 2013 compared to the original projections but increased significantly from 2013 to 2014. The performance of the contractors is rated satisfactory. Apart from minor construction waste management issues during construction which were quickly resolved by the PMUs, all contractors carried out and completed works according to their contractual agreements including the agreed construction schedules and specifications. The quality of works is good and all completed subprojects are serving the intended beneficiaries. Appendix 6 shows the projected and actual contracts awards under the ADB loan throughout the project life.

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H. Gender Equity 32. The project was correctly classified effective gender mainstreaming. A gender action plan (GAP) was developed at the project design. The project’s GAP included the following key gender targets: (i) at least 30% of unskilled civil works labors are women; (ii) at least 50% of community facilitators for hygiene and sanitation awareness raising activities are women; (iii) 50% of positions in community-based waste management groups are held by women; (iv) 40%–50% of positions in community-based monitoring committees are held by women; (v) at least 30% of participants in public consultation meetings for displaced households are women; (vi) separate supplementary consultation meetings are conducted with women for income restoration and resettlement needs; (vii) 100% participation of female project staff in all trainings provided by the project; (viii) capacity building for the Women’s Union to implement the project’s communication strategy; and (ix) sex-disaggregated data are collected, properly analyzed, and included in project progress reports. GAP implementation is rated successful, with 79% of the 33 GAP activities implemented and 88% of 16 GAP targets either achieved or partially achieved.

I. Safeguards 33. The project was categorized A for involuntary resettlement, B for environment, and B for indigenous people in compliance with ADB’s SPS. Some 1,958 households were affected in the project area, with 767,346.59 m2 of land acquired to accommodate road and drainage construction, wastewater treatment plant construction, improvement of border gate facilities, and flood protection measures. Some 1,214 households were severely affected, losing more than 10% of their productive landholdings, with 142 households required to relocate. The number of vulnerable households totaled 187, including 20 Tay ethnic minority households.

34. The implementation of environment, involuntary resettlement, and indigenous people’s safeguards requirement complied with the SPS. The coordination among agencies involved in compensation and resettlement is assessed effective. Compensation and resettlement databases were established and kept updated by the PMUs and the compensation, assistance, and resettlement committee (CARC) offices to support reporting and monitoring. Internal and external monitoring reports were prepared and kept securely in the PMU offices and uploaded on the ADB website. Although the process took more time than expected at appraisal, all affected households, including vulnerable households, received adequate compensation and benefitted from mitigation measures in the approved updated resettlement plans. Updated resettlement plans were disclosed to affected persons following ADB’s Public Communications Policy 2011.

35. Updated resettlement plans established a four-step grievance redress mechanism that was applied to all subprojects. Based on this mechanism, complainants could lodge their complaints at various levels. However, the external monitoring consultant reported that the few complaints received were solved at the commune or district level. Most complaints were related to land ownership verification, errors in the detailed measurement survey process, missing entitlements, and unexpected impacts that emerged during construction. CARCs, in cooperation with the PMUs, local authorities, and affected households, reviewed and solved complaints amicably on a case-by-case basis. To date, no unresolved issues are pending. Surveys by the external monitoring consultants at project completion showed that most affected households were highly satisfied with resettlement planning and implementation (Appendix 9). 36. The project’s environmental impacts were minor. Satisfactory efforts were applied to prevent and mitigate negative impacts. During the initial site works, some unsatisfactory construction waste disposal was a nuisance for the local population, but the PMUs quickly

8

resolved this issue. At completion, environmental indicators at all sites—including air and water quality, noise levels, and general appearance—are all satisfactory and substantially compliant with environmental safeguard documents. No significant long-term negative environmental impacts are expected to arise from the project. The PMUs and consultants monitored safety and health properly at the work sites. J. Monitoring and Reporting 37. The loan agreement had 17 covenants and the project agreement had 13 covenants. The covenants were relevant, and no covenant was modified, suspended, or waived. By the loan closing date, all covenants except one were fully complied with. The partly complied covenant was due to slightly lower than expected women’s participation as unskilled laborers in the Dong Dang works subprojects (28% versus 30% required by the covenant). This is because women in Dong Dang can earn more as porters carrying goods across the border than in unskilled construction work. Appendix 7 shows the status of compliance with the loan and project covenants. 38. The executing agencies complied fully with the project’s monitoring and reporting requirements. They provided ADB with timely (i) quarterly progress reports in a format consistent with the project’s DMF; (ii) consolidated annual reports, including (a) the progress achieved by output as measured through the indicator’s performance targets, (b) key implementation issues and solutions, (c) safeguard and social monitoring reports, (d) updated procurement plans, and (e) updated implementation plans for the next 12 months; and (iii) the government’s project completion report within 6 months of physical completion.

39. The executing agencies timely submitted good quality audited project financial statements to ADB in English, including the final audit report.

III. EVALUATION OF PERFORMANCE A. Relevance 40. The project is rated relevant. Its objective to contribute to more balanced regional development in northern Viet Nam was consistent with GMS and national strategies promoting urban development and the priorities set forth in ADB’s assessment, strategy, and road map for the urban development sector in Viet Nam. The project remained relevant at the loan closing date. Its intended impact and outcome were consistent with the Government’s Framework Master Plan for Urban Development in Viet Nam to 2025 and Vision to 2050.8 Subprojects aligned with ADB’s policies and sector priorities; the urban operational plan, 2012–2020; and ADB’s Viet Nam country partnership strategy, 2012–2015, which promotes comprehensive socioeconomic development to foster balanced growth and social stability. 9

41. The project design addressed gender issues adequately and included gender targets in four out of eight DMF outputs. The GAP also aligned with the DMF and included relevant gender actions and targets.

8 Government of Viet Nam, Ministry of Construction. 2009. Framework Master Plan for Urban Development in

Viet Nam to 2025 and Vision to 2050. Ha Noi (approved in 2009 under Decision No.445/QÐ-TTg). 9 ADB. 2013. Urban Operational Plan, 2012–2020. Manila.

9

B. Effectiveness 42. The project is rated effective. At completion, it had delivered 80% of the expected outcome targets. It substantially achieved the outcome of improved urban infrastructure and municipal services in Viet Tri, Hung Yen, and Dong Dang cities. According to Hung Yen’s PMU’s November 2017 progress report, the wastewater treatment plant and associated network construction under KEXIM financing is progressing well, indicating that the remaining outcome indicators are likely to be achieved. C. Efficiency 43. The project is rated less than efficient because traffic volumes on three of the four project-financed roads were substantially lower than anticipated at appraisal (Appendix 8). Nevertheless, the project’s intended outcome was substantially achieved within the planned implementation period and costs. 44. Results of economic and financial reevaluation. At appraisal, economic cost–benefit analyses were conducted for nine subprojects. Of these, eight had an estimated economic internal rate of return (EIRR) of at least 12.0%, which was the minimum required rate of return at appraisal (the EIRR of the Phu Dong Road was 11.4%). At completion, four of the nine subprojects had an estimated EIRR higher than 12.0%.10 Because of lower-than-expected traffic volumes, the EIRR of the university road in Hung Yen was 6.2%, the EIRR of Truong Chinh Road in Viet Tri was 6.8%, and the EIRR of Thuy Van Industrial Road in Viet Tri was 7.9%. The infrastructure for the old town of Hung Yen had an EIRR at completion of 6.1%. The reevaluation recognized that the traffic volumes on these roads are growing and are expected to increase in the next 5 years.

45. No economic analysis was prepared for wastewater collection and treatment in Hung Yen because this subproject has not been completed. Given that most subprojects would not generate incremental financial revenue, the financial analysis prepared at appraisal did not attempt to estimate financial internal rates of return for individual subprojects. Instead, a fiscal analysis was prepared for each of the implementing agencies (i.e., CPCs of Viet Tri and Hung Yen, and the PPC of Lang Son). In 2016, the operating balances of each agency were substantially higher than the incremental O&M expenditure projected at appraisal for 2016–2020. This suggests that, at completion, all three implementing agencies had the required fiscal capacity to sustainably finance incremental O&M expenditures for project-financed investments (Appendix 8). D. Sustainability 46. The project is rated likely sustainable as the institutional, financial, and other resources are likely to be sufficient to sustain the project’s outcome over its economic life in an environmentally and socially sustainable manner. The capacity building activities provided by the project have strengthened the PPCs ability to develop and manage urban areas. Project-financed infrastructure consists mainly of strategic roads, which will contribute to the economic development of the cities—supporting the expansion of funding sources, which will allow for improved urban management. The solid waste collection facilities in Viet Tri are being fully used, and funds are being recovered by local authorities to support their operation. The project has supplied considerable O&M equipment to support the drainage works in Dong Dang. The new

10 Since February 2017, the minimum required return for ADB-financed projects is 9%. The original hurdle rate of 12%

was used for evaluation at both appraisal and completion, to enable consistent comparison.

10

border post at Huu Nghi provides a modern well-managed facility that is expected to be financially self-supporting over its economic life. Several gender results will be sustained beyond the project life, such as the sustainable facilitation capacity of female community facilitators, and the supervision capacity of female members of community organizations who were trained under the project. The sustainable income restoration program benefitted women in affected households and built the leadership and capacity of the three cities’ Women Unions. E. Development Impact 47. The development impacts assessment is focused on long-term, far-reaching changes to which the project has plausibly contributed. Quantifiable project impacts to date are limited because the works were completed recently. Although the DMF indicator for average annual household income has been met, it is premature to conclude that the project outputs can be substantially attributed to improved economic conditions within the towns overall. However, broad areas of development, which the design targeted, have been positively impacted. The road works in Viet Tri and Hung Yen are already being well utilized; the old town infrastructure upgrading in Hung Yen has improved amenity and increased tourism; and the new border gate and drainage works in Dong Dang improve convenience and environmental conditions. From a development impact viewpoint, the old town infrastructure upgrading in Hung Yen is substantial. This provides a model for application in other towns where historically significant urban areas are considered worthy of preservation.

48. Apart from satisfactory implementation of environment and resettlement activities, the ethnic minority development plan implemented in Dong Dan minimized the impact on ethnic vendors at the market during drainage construction works. An extensive HIV/AIDS and human trafficking prevention program was also implemented. These activities ensured the participation of ethnic minorities in the project and sharing of project benefits. The number of beneficiaries of drainage works in Dong Dang is estimated at 900 households, compared with 800 in the original design. 49. GAP implementation achieved strong gender results and impacts. The key achievements included: (i) 340 (98%) out of 345 community hygiene and sanitation awareness facilitators were women in Viet Tri, Dong Dang, and Hung Yen (target 50%); (ii) women held 100% of the positions in 49 community-based waste management groups in three cities (target 50%); (iii) 18 (46%) of the 39 affected people who participated in the consultation meeting for displaced households were women (target 30%); (iv) 188 out of 280 participants who took part in the separate supplementary consultation meetings on the income restoration program (IRP) and later participated in IRP training were female; (v) 1,217 (71.8%) out of 1,695 participants in the trainings on road safety, environment and sanitation, HIV/AIDS and anti-human trafficking, environment, and climate change were female; and (vi) 17 (100%) PMU female staff participated in gender equity training (target 100%). Detailed results and impacts are in Appendix 10. Overall, the project development impact is rated satisfactory. F. Performance of the Borrower and the Executing Agency 50. The performance of the borrower and the executing agencies is rated satisfactory. The project executing agencies provided sufficient counterpart staff and funds, as specified in the loan agreement, and complied with the loan covenants. They also ensured that procurement plans were implemented in accordance with ADB and government requirements.

11

G. Performance of Cofinancier 51. The KEXIM provided a concessional loan of $13.52 million to construct a waste water treatment plan of 6,300 m3/day, three pumping stations, 8.5 km of combined sewer, 5.6 km of interceptor, and 5.6 km of pressured main constructed and maintenance machinery and equipment, scheduled to complete by 31 January 2020. As the collaboration with KEXIM is limited and the wastewater treatment plant was still under construction at completion, performance of the cofinancier is not assessed. H. Performance of the Asian Development Bank 52. The performance of ADB is rated satisfactory. The project was delegated to the Viet Nam Resident Mission on 20 May 2013. From 2013 to 2017, the resident mission team conducted seven timely loan review missions and three special administration missions to provide guidance on ADB procedures in procurement, safeguard policies, and overall project management. The project team jointly developed with PMUs a time-bound detailed project implementation schedule, which was an effective monitoring tool to ensure the timely completion of project milestones. A midterm review mission in November 2015 reallocated the uncommitted amount to cover additional expenditure for works and goods and provided necessary guidance to PMU staff to enable compliance with covenants. The resident mission responded to PMU requests within 5–7 working days, and no notable delays were reported regarding ADB’s processing of withdrawal applications. Resident mission staff spent adequate time addressing PMU queries about various ADB procedures; provided advice on safeguards and procurement; and assisted to resolve technical and project administration matters, either in meetings or through written correspondence. I. Overall Assessment 53. The project is rated successful. It was relevant at the time of appraisal in addressing the policy objectives of the government and ADB and remained relevant at completion. The project is rated effective because all ADB-financed outputs were completed as envisaged and outcome has been substantially achieved. The KEXIM-financed Hung Yen wastewater treatment plant and sewerage system is under construction and is expected to be completed by January 2020. The project is rated less than efficient because the traffic volumes on three of the four project-financed roads are substantially lower than anticipated. The project is likely sustainable because considerable efforts have been made to improve urban management expertise in the three cities. Measures have also been put in place to adequately fund ongoing O&M.

Overall Ratings Criteria Rating Relevance Relevant Effectiveness Effective Efficiency Less than efficient Sustainability Likely sustainable Overall Assessment Successful Development impact Satisfactory Borrower and executing agency Satisfactory Performance of Asian Development Bank. Satisfactory Source: Asian Development Bank.

12

IV. ISSUES, LESSONS, AND RECOMMENDATIONS A. Issues and Lessons 54. The selection of average annual household income appears to be an adequate indicator to measure the overall impact of the project. However, the targets appear to be in current prices and perhaps should have been in constant prices. The rate of change of annual household income from 2017 to 2020 compared with recent years could be expected to provide a more accurate indication of the project’s economic impact. 55. The requirements concerning the participation of females as unskilled laborers on infrastructure projects should be set according to the conditions in each project location and based on baseline surveys for each project province prepared during project processing. 56. The capacity of the PMUs is high, as they have completed the project outputs within the original time frame. Medium-sized towns in Viet Nam can design and implement urban infrastructure projects, so the government’s decentralized approach was appropriate. 57. High project readiness is a key factor for timely implementation. For this project, the completion of detailed engineering designs financed by counterpart fund right after loan effectiveness helped ensure prompt contract awards, leading to timely project completion. The project design should include necessary advance actions and the PMUs should implement advance actions to minimize start-up delays. The recruitment of consultants, especially LIC, should also start before loan effectiveness. The timely mobilization of relevant consultants based on the actual needs of each subproject, following PMU requests, ensures the timely delivery of their required inputs and outputs. 58. The use of permanent professional project management unit staff is another key factor that contributed to timely project implementation. A PMU with full-time professional staff that have project management skills and experience with the government’s procedures and official development assistance-financed projects, will ensure a smooth start-up and minimize delays. ADB project teams provided timely, hands-on, tailor-made training for the PMUs, which helped them expedite implementation and ensure compliance with the loan covenants. 59. Urban development projects that cover multiple outputs and involve complex works, such as the wastewater treatment plants, should use specialist consultant assistance during project design and implementation. Delayed construction of the wastewater treatment plant and associated network under KEXIM financing could have been minimized if a suitable treatment process had been selected earlier. B. Recommendations 60. To ensure timely project start-up and completion, advance actions should be included in the project design and timely conducted by the EAs. In Viet Nam, advance actions can be initiated after the approval of the pre-feasibility study. Consultant recruitment can begin after the feasibility study is approved, before loan effectiveness. 61. Use of counterpart funds or a project development facility (with or without ADB funding) for detailed engineering designs during project processing is an effective way to minimize start-up delays.

13

62. For parallel cofinanced projects, a specific coordinating mechanism should be established to ensure good coordination during implementation. This should include harmonized monitoring and reporting mechanisms and joint review missions.

63. Further action. The traffic volume of road component should be reassessed by ADB by 2021 to reevaluate the efficiency of road outputs.

64. Timing of the project performance evaluation report. It is recommended that the Independent Evaluation Department conduct a project performance evaluation in 2021 to allow time to assess the co-financed wastewater treatment operations and reassess the efficiency of road outputs.

14 Appendix 1

DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Indicators and Targets Project Achievements Comments

Impact Development of Viet Tri, Hung Yen and Dong Dang as economic centers in northern Viet Nam.

By 2020: Average annual household income raised from D46 million (2010) to D92 million (2020) in Phu Tho province, D57 (2010) to D114 (2020) in Hung Yen province, and D36 million (2010) to D72 million (2020) in Lang Son province

Achieved: By 2016: Average annual income per person was D33.2 million in Phu Tho province, D44.5 million in Hung Yen province, and D32.4 million in Lang Son Province. Based on 2012 household data household incomes would be more than D120 million in Phu Tho, D156 in Hung Yen and D136 in Lang Son

Outcome Improved urban infrastructure and municipal services in Viet Tri, Hung Yen and Dong Dang

By project completion: 1. Travel distance from Noi Bai – Lao Cai expressway to the city center through Phu Dong road reduced from 5.5 km (2010) to 4.1 km (2016) in Viet Tri

Achieved: Phu Dong road (VT1): 4.1 km of road connecting Noi Bai – Lao Cai express highway to the city center has been constructed

2. Road congestion along National Road 2 reduced from 6,000 automobiles (2010) to 5,000 (2016) per day in each direction in Viet Tri by diverting the traffic to the city ring road

Achieved: The daily traffic flow along National Road 2 was recorded as 4,221 (June 2017) in Viet Tri due to diversion of traffic to the city ring road

3. Solid waste collection increased from 120 tons/day (2010) to 150 tons/day (2016) in Viet Tri

Achieved: As at December 2015 the solid waste collection in the city of Viet Tri had reached 145 tons/day

Based on the rate of increase to 2015 this outcome should be achieved.

4. 6,000 households served by wastewater treatment (2016) in Hung Yen

Partly achieved: The wastewater system in Hung Yen is still under construction

Wastewater treatment plant due for completion by 31 July 2021.

5. Tourist arrivals increased from 134,658 (2009) to 200,000 (2016) in Hung Yen province

Achieved: In 2016 the number of tourists arriving in Hung Yen province reached 420,000 persons

More than substantial level of achievement appears to indicate that target was conservative.

6. New universities and residential areas served by new road in Hung Yen

Achieved: The new road in Hung Yen servicing the new universities and residential areas is constructed and in use

7. Time required for customs clearance for goods at the Huu Nghi border gate reduced from 5 hours (2010) to 2 hours (2016)

Partially achieved: In December 2016, the time required for customs clearance for goods at Huu Nghi border gate was reported as 3 hours

The work on the border gate building was not completed until May 2017, around 18 months after original completion date.

8. Trade at the Huu Nghi border gate increased from $859 million (2010) to $1.7 billion (2016)

Achieved: In 2016 trade at the Huu Nghi border gate was reported to value $2.1 billion

As above.

Appendix 1 15


9. Passengers at the Huu Nghi border gate increased from 710,606 (2010) to 1.1 million (2016)

Partly achieved: In 2016 the number of visitors through Huu Nghi border gate was reported at 1.0 million persons

10. About 800 households benefit from reduced incidence of flooding in 2016 in Dong Dang

Achieved: About 900 households are reported to have benefitted from reduced flooding impacts in 2017 in Dong Dang

Increase in project beneficiaries reported.

Outputs Viet Tri 1. Urban roads constructed and improved

4.1 km road connecting Noi Bai–Lao Cai expressway with the city center constructed

Achieved: Phu Dong road (Contract VT1): 4.1 km road connecting Noi Bai – Lao Cai expressway with the city center was constructed

4.4 km Truong Chinh road from the northern dike road to Thuy Van industrial zone through Phu Dong road constructed and improved

Achieved: Truong Chinh road (Contract VT2): 4.4 km of road from North dyke road to Thuy Van Industrial zone going through Phu Dong road was constructed and upgraded.

6.5 km from Thuy Van industrial zone to the southern dike constructed and improved

Achieved: Thuy Van road (VT3): 6.0 km of road from Thuy Van Industrial Zone to the South dyke bank was constructed and upgraded.

The detailed engineering design determined that the length of road required under this item was 6.0 km rather than the 6.5 km included in the FS 2011.

At least 30% of unskilled labor force in civil works are women

Achieved: 34% of unskilled labor force in civil work were women.

Refer also to Appendix 13: Gender Action Plan Monitoring Table

2. Fleet and equipment provided

11 trucks and 1,000 pushcarts for solid waste collection and transportation provided

Achieved: 11 trucks and 1,000 pushcarts were provided for collection and transportation of solid waste.

Hung Yen 3. Wastewater treatment plant and sewer network built

A wastewater treatment plant(6,300 m3/day), three pumping stations, 8.5 km of combined sewer, 5.6 km of interceptor, and 5.6 km of pressured main constructed; and maintenance machinery and equipment provided

Being achieved. These facilities funded by KEXIM are currently under construction.

Detailed design of the wastewater and treatment plant and network was approved on 29 Apr 2016. The site was handed over to the contractor on 12 May 2017. Expected completion is by 31 July 2020.

4. Infrastructure in old town upgraded

4.5 km of roads improved with provision of water supply, wastewater and drainage pipes, and utility ducts

Achieved: 5.3 km of roads were improved with the water supply pipelines, sewage, drainage, and utility pipes. In addition, 563 m of Nguyen Dinh Nghi road was improved along with 276 m of Phuong Do road.

At least 50% of community facilitators of hygiene and sanitation awareness-raising activities are women

Achieved: 50% of community facilitators of hygiene awareness raising activities were women.

16 Appendix 1


5. Urban road constructed 3.3 km of road constructed Achieved: 3.3 km of University urban road was constructed

Dong Dang 6. Huu Nghi border gate facilities improved

9,980 m2 office buildings, footbridges connecting the office buildings, 2.9 km of roads, and 5.2 hectares of car park built within the border gate complex

Achieved: 9,980 m2 Huu Nghi border gate office buildings (Contract DD1b) were constructed with 133 m pedestrian bridge connecting the office buildings of long. Huu Nghi border gate infrastructure (Contract DD1a) was completed, including 1,668m of main road, 695m of branch road and 264m of bypass road, parking areas of 10,080 m2 and 9,287 m2 for import and export goods, respectively.

The area of office buildings was in line with the target, however; the total length of roads constructed was 2.6 km and the parking areas reduced to 1.9 ha

Construction of Vietnamese section of the connecting road between the Vietnamese and Chinese border gates for transportation of goods

Achieved: The connecting road between Vietnamese and Chinese border gates was constructed.

Awareness and prevention programs on sexually transmitted infections including HIV/AIDS and human trafficking specifically mitigate risks to women

Achieved: The project prepared materials and implemented public programs on (i) raising awareness about gender, (ii) implementation of a Gender Action Plan, (iii) anti-HIV/AIDS, (iv) prevention of human trafficking and (v) climate change. Materials included posters, flyers and brochures, plus movies on prevention of human trafficking.

The project collaborated with Cao Loc Women's Union to organize nine major events in Dong Dang town during 2015. A total of 960 people participated in the events, including 822 women. Some 279 ethnic minority people of participated, 233 of which were women.

7. Drainage and flood protection improved

4.6 km of drainage pipes and 850 m of riverbank embankment improved

Achieved: Drainage and flood protection works (Contract DD2a) were constructed, including 4.6 km of drainage pipelines and 730 m of the river revetment.

Minor reduction in length of river revetment.

Business interruption by floods eliminated for 183 women-operated businesses in the market

Achieved. Flood protection and prevention in the market area. Some 183 women could continue business without interruption due to flood.

All project towns 8. Strengthened efficiency and management capacity of local authorities

150 staff of the implementing agencies acquire appropriate level of knowledge on urban planning and management, financial management and cost recovery, and operation and maintenance of the project facilities

Achieved: 167 staff of the implementing agencies and the PMU achieved the appropriate level of knowledge of planning and urban management, financial management, cost recovery, and operation and maintenance of the project works after joining the following training courses: (i) project management (20 people), (ii) urban planning (30 people), (iii) financial training (15 people), (iv) livelihood (37 people), (v) O&M training (30 people), (vi) other training (35 people).

Appendix 1 17


Women’s Union in three project cities provided capacity development training and material support to ensure women’s needs are addressed in project implementation

Achieved: The project has organized 42 training courses with 1,975 participants, including 1,405 women accounting for 71%. Courses were implemented by (i) Viet Tri PMU who organized 14 training courses with 502 participants, including 364 women, accounting for 73%, (ii) Hung Yen PMU organized 18 training courses with 860 participants, including 542 women, accounting for 63%; and (iii) Lang Son PMU organized 10 training courses with 613 participants, including 499 women, accounting for 81%.

Studies to be delivered as part of the consultants TOR were (i) a long-term residential land development plan for Viet Tri, (ii) a detailed master plan for the old town in Hung Yen focusing on the overall management, legal aspects, and infrastructure planning, and; (iii) potential for public-private partnership at the Huu Nghi border gate facilities in Dong Dang.

Achieved: Studies (i) and (ii) completed by PPCs. PPP study is on-going by PPC Lang Son.

O&M = operations and maintenance, PPC = provincial people’s committees, PMU = provincial project management unit, TOR = terms of reference. Source: Asian Development Bank.

18 Appendix 2

PROJECT OUTPUTS

Table A2.1: Planned and Actual Project Outputs

Output At Loan Appraisal

(October 2011) At Loan Closing

(June 2017)

Output 1: Viet Tri Urban Roads

VT1 – Phu Dong Road (km) 4.1 4.1

VT2 – Truong Chinh Road (km) 4.4 4.4

VT3 – Thuy Van Road (km) 6.5 6.0

Output 2: Viet Tri Solid Waste Management

VT4 – Equipment supply for solid waste management

Compactor truck 5 ton (no.) 5 5

Compactor truck 3.5 ton (no.) 6 6

Waste collection cart (no.) 1,000 1,000

Output 3: Hung Yen Wastewater Treatment Plant and Network (under construction by KEXIM financed contractor)

Wastewater treatment plant (m3/day) 6,300 ongoing

Pump station (no.) 3 ongoing

Sewers and pipelines (km) 19.7 ongoing

Output 4: Hung Yen Old Town Infrastructure

HY2 – Pho Hien Ancient Town infrastructure improvement

Roads improved with provision of water supply, sewers, drainage pipes and utility ducts (km)

4.5 5.3

Output 5: Hung Yen Urban Road

HY3 – University Road (km) 3.3 3.3

Output 6: Dong Dang Huu Nghi Border Gate

DD1a – Border Gate Infrastructure

Road (km) 2.9 2.9

Parking Area (no.) 2 2

DD1b – Border Gate Building

Main Building (m2) 9,980 9,980

Roads (km) 2.9 2.6

Parking Area (ha) 5.2 1.9

Output 7: Dong Dang Drainage and Flood Protection

DD2a – Flood Protection and Drainage

Flood protection revetment (km) 0.85 0.73

Drainage pipeline (km) 4.6 4.6

DD2b – O&M Equipment

Crane /decker truck 2.5 ton - 1

Sludge vacuum tanker 5 m3 2 2

High pressure jetting truck 5x3 m3 - 2

Appendix 2 19

Output At Loan Appraisal

(October 2011) At Loan Closing

(June 2017)

Water tanker truck with sprinkler/jet nozzle - 1

Maintenance/garbage truck (no.) 1 1

Garbage push carts (no.) - 20

Spare parts and accessories 1 1

Submersible water pumps various capacity - 3

Output 8: Strengthened Efficiency and Management Capacity of Local Authorities

150 staff of PMUs acquire appropriate level of knowledge on urban planning and management, financial management and cost recovery, and operation and maintenance of the project facilities.

Included Completed

Women’s Union in three project cities provided capacity development training and material support to ensure women’s needs are addressed in project implementation

Included Completed

Analytical studies on (i) long term residential development plan for Viet Tri, (ii) a detailed master plan of the old town in Hung Yen, and (iii) potential for public-private partnership at the Huu Nghi border gate facilities in Dong Dang

Included Completed

Source: Asian Development Bank.

20 Appendix 3

PROJECT COST AT APPRAISAL AND ACTUAL ($ million)

Item Appraisal Estimate Actual

A. Base costs 1. Viet Tri 37.45 42.22 a. Urban roads 36.12 41.31 b. Solid waste management 1.33 0.91 2. Hung Yen 20.78 23.14 a. Wastewater treatment and network 11.91 13.79 a b. Old town infrastructure 2.87 2.51 c. Urban roads 6.00 6.84 3. Dong Dang 23.88 26.41 a. Huu Nghi border gate 18.87 21.49 b. Drainage and flood protection 5.01 4.92 4. Institutional and capacity development 5.26 4.76 Subtotal (A) 87.37 96.53 B. Contingencies 27.14 0.00 C. Financial Charges During Implementation 0.82 0.74

Total (A+B+C) 115.33 97.27 a including provisional data of KEXIM loan which was extended to July 2020

Source: Asian Development Bank

Appendix 4 21

PROJECT COST BY FINANCIER

Table A4.1: Project Cost at Appraisal by Financier ADB

KEXIM Government

Total Cost

Amount % of Cost Category Amount

% of Cost Category Amount


% of Total Cost

Item A. Investment Costs

1. Construction and civil works 43.65 76.2% 6.68 11.7% 6.94 12.1% 57.27 49.7%

2. Equipment 2.74 53.8% 2.35 46.2% 0.00 0.0% 5.09 4.4% 3. Land acquisition and compensation 0.00 0.0% 0.00 0.0% 17.00 100.0% 17.00 14.7% 4. Incremental costs 2.32 84.4% 0.43 15.6% 0.00 0.0% 2.75 2.4%

5. Implementation support, capacity development, and awareness building

4.49 85.4% 0.77 14.6% 0.00 0.0% 5.26 4.6%

Subtotal (A) 53.20 60.9% 10.23 11.7% 23.94 27.4% 87.37 75.8%

B. Contingencies 16.11 59.4% 3.16 11.6% 7.87 29.0% 27.14 23.5% C. Financial Charges During

Implementation 0.69 84.1% 0.13 15.9% 0.00 0.0% 0.82 0.7%

Total Project Cost (A+B+C) 70.00

13.52

31.81

115.33 100%

% Total Project Cost

60.7%

11.7% 27.6%

100%

Source: Asian Development Bank.

22 Appendix 4

Table A4.2: Project Cost at Completion by Financier ADB

KEXIM a Government

Total Cost

Amount % of Cost Category Amount



% of Total Cost

Item A. Investment Costs

1. Construction and civil works 53.19 72.2% 13.39 18.2% 7.13 9.7% 73.71 75.8% 2. Equipment 3.96 90.9% 0.00 0.0% 0.40 9.1% 4.36 4.5% 3. Land acquisition and compensation 0.00 0.0% 0.00 0.0% 13.71 100.0% 13.71 14.1% 4. Incremental costs 0.37 100.0% 0.00 0.0% 0.00 0.0% 0.37 0.4%

5. Implementation support, capacity development, and awareness building

3.99 90.9% 0.00 0.0% 0.40 9.1% 4.39 4.5%

Subtotal (A) 61.51 63.7% 13.39 13.9% 21.63 22.4% 96.53 99.2%

B. Contingencies 0.00 - 0.00 - 0.00 - 0.00 - C. Financial Charges During

Implementation 0.61 82.4% 0.13 17.6% 0.00 0.0% 0.74 0.8%

Total Project Cost (A+B+C) 62.12

13.52

21.63

97.27 100%

% Total Project Cost

63.9%

13.9% 22.2%

100% a including provisional data of KEXIM loan which was extended to July 2020 Source: Asian Development Bank.

Appendix 5 23

DISBURSEMENT OF ADB LOAN PROCEEDS

Table 5.1: Annual and Cumulative Disbursement of ADB Loan Proceeds a ($ million)

Annual Disbursement Cumulative Disbursement

Year Amount

($ million) % of Total Amount

($ million) % of Total 2012 0.0 0.0% 0.0 0.0% 2013 0.4 0.6% 0.4 0.6% 2014 7.7 12.4% 8.1 13.0% 2015 16.1 25.9% 24.2 39.0% 2016 18.8 30.3% 43.0 69.2% 2017 19.1 30.8% 62.1 100.0% Total 62.1 100.0%

ADB = Asian Development Bank. a Includes disbursements to advance accounts. Source: Asian Development Bank.

Figure 5.1: Projection and Cumulative Disbursement of ADB Loan Proceeds

($ million)

Source: Project Administration Manual – October 2011; ADB Loans Financial Information System – February 2018.

0

10

20

30

40

50

60

70

80

2011 2012 2013 2014 2015 2016 2017 2018

Projected Actual

24 Appendix 6

CONTRACT AWARDS OF ADB LOAN PROCEEDS

Table 6.1: Annual and Cumulative Contract Awards of ADB Loan Proceeds

($ million) Annual Contract Awards Cumulative Contract Awards

Year a Amount ($ million) % of Total

Amount ($ million) % of Total

2012 0.0 0.0% 0.0 0.0%

2013 4.1 6.5% 4.1 6.5%

2014 39.6 63.7% 43.6 70.3%

2015 17.2 27.7% 60.8 98.0%

2016 1.3 2.0% 62.1 100.0%

2017 0 0.0% 62.1 100.0%

Total 62.1 100.0%

ADB = Asian Development Bank. a Classified by contract signing dates. Source: Asian Development Bank.

Figure 6.1: Projection and Cumulative Contract Awards of ADB Loan Proceeds ($ million)

Source: Project Administration Manual – October 2011; ADB Loans Financial Information System – January 2018.

0

10

20

30

40

50

60

70

80

2011 2012 2013 2014 2015 2016 2017 2018

Projected Actual

Appendix 7 25

STATUS OF COMPLIANCE WITH LOAN AND PROJECT COVENANTS

Covenant

Reference in Loan and Project

Agreements

Status of Compliance

Implementation Arrangements 1. The Borrower shall cause the Project Executing Agencies to ensure

that the Project is implemented in accordance with the detailed arrangements set forth in the PAM. Any subsequent change to the PAM shall become effective only after approval of such change by the Project Executing Agencies and ADB. In the event of any discrepancy between the PAM and this Loan Agreement, the provisions of this Loan Agreement shall prevail.

LA Schedule 5, para. 1

Complied with.

Environment 2. The Borrower shall cause the Project Executing Agencies to ensure

that the preparation, design, construction, commissioning, implementation and operation of the Project and all Project facilities comply with: (a) all applicable laws and regulations of the Borrower relating to environment, health and safety; (b) the Environmental Safeguards; and (c) all measures and requirements, including, without limitation, those relating to disposal of sludge, effluent and solid waste, set forth in the IEEs, the EMPs, and any corrective or preventative actions set forth in any Safeguards and Social Monitoring Report. In case of any discrepancy or inconsistency among the Borrower’s laws, regulations and procedures relating to environment, health and safety and the SPS, the SPS shall prevail.


Complied with.

3. Prior to commencement of civil works for the Hung Yen Project, the Borrower shall submit to ADB the final initial environmental examination for clearance. The Borrower shall further ensure that environment monitoring reports for the Hung Yen Project are regularly submitted to ADB during the construction phase of the Hung Yen Project.


Complied with.

Land Acquisition and Involuntary Resettlement 4. The Borrower shall cause the Project Executing Agencies to ensure

that all land and all rights-of-way required for the Project are made available to the Works contractor(s) in accordance with the schedule set out in the Works contract(s) and that all land acquisition and resettlement activities are carried out and implemented in compliance with: (a) all applicable laws and regulations of the Borrower relating to land acquisition and involuntary resettlement; (b) the Involuntary Resettlement Safeguards; and (c) all measures and requirements set forth in the RPs, and any corrective or preventative actions set forth in any Safeguards and Social Monitoring Report. In case of any discrepancy or inconsistency among the Borrower’s laws, regulations and procedures relating to land acquisition and involuntary resettlement and the SPS, the SPS shall prevail. Significant gaps between the Borrower’s laws, regulations and procedures relating to land acquisition and involuntary resettlement and the SPS, identified during the preparation of the Project, are specified in the chapter on resettlement policy in each RP.


Complied with.

5. The Borrower shall cause each Project Executing Agency to engage, prior to updating its RP and the CAP (as applicable), (a) social/gender specialist; and (b) resettlement specialist to assist it in the updating, implementation and monitoring of its RP and the CAP (as applicable).


Complied with.

6. Without limiting the application of the SPS or the RPs, the Borrower shall cause the Project Executing Agencies to ensure that no physical or economic displacement takes place in connection with the Project until: (a) compensation and other entitlements have been provided to affected people in accordance with the RPs; and (b) comprehensive


Complied with.

26 Appendix 7

Covenant


Agreements


income and livelihood restoration programs have been established in accordance with the RPs.

7. The Borrower shall cause the PPC, Lang Son to ensure that for component 5 of the Project: (a) compensation and other entitlements are provided to affected people in accordance with the CAP; and (b) comprehensive income and livelihood restoration program shall be established and implemented in accordance with the CAP. The Borrower shall cause the PPC, Lang Son to also ensure that disruptions to the vendors at Dong Dang Market due to Works are minimized, and that any loss of income resulting from such disruptions is mitigated through income support assistance.


Complied with.

Ethnic Minorities 8. The Borrower shall cause the PPC, Phu Tho and the PPC, Hung Yen

to ensure that the Project does not have any ethnic minorities' impact, all within the meaning of the SPS. In the event the Project does have any such impact, PPC, Phu Tho and PPC, Hung Yen shall take all steps required to ensure that the Project complies with the applicable laws and regulations of the Borrower and with the SPS.


Complied with.

9. The Borrower shall cause the PPC, Lang Son to ensure that the preparation, design, construction, commissioning, implementation and operation of the Project and all Project facilities comply with: (a) all applicable laws and regulations of the Borrower relating to ethnic minorities; (b) the Ethnic Minorities Safeguards; and (c) all measures and requirements set forth in the EMDP and any corrective or preventative actions set forth in any Safeguards and Social Monitoring Report.


Complied with.

10. The Borrower shall cause the Project Executing Agencies to make available necessary human and budgetary resources to fully implement, as applicable, the EMPs, the RPs, the CAP, the GAP and the EMDP.


Complied with.

11. The Borrower shall cause the Project Executing Agencies to ensure that all bidding documents and contracts for Works contain specific provisions that require contractors to:


comply with the measures relevant to the contractors set forth in the IEEs, the EMPs, the RPs, the CAP (as applicable) and the EMDP (to the extent they concern impacts on affected people during construction), and any corrective or preventative actions set forth in a Safeguards and Social Monitoring Report;

Complied with.

make available a budget for all such environmental and social measures;

Complied with.

provide the Project Executing Agency concerned with a written notice of any unanticipated environmental, resettlement or ethnic minorities risks or impacts that arise during construction, implementation or operation of the Project that were not considered in the IEEs, the EMPs, the RPs, the CAP (as applicable) and the EMDP;

Complied with.

adequately record the condition of roads, agricultural land and other infrastructure prior to starting to transport materials and construction;

Complied with.

reinstate pathways, other local infrastructure, and agricultural land to at least their pre-project condition upon the completion of construction; and

Complied with.

(i) comply with all applicable labor laws of the Borrower on the prohibition of child and forced labor; (ii) give equal pay for equal work regardless of gender, ethnicity or social group; (iii) disseminate information on sexually transmitted diseases (including HIV/AIDS) and human trafficking to sub-contractors/employees and local communities surrounding the Project construction sites; and (iv) implement HIV/AIDS and human trafficking awareness activities.

Complied with.

Appendix 7 27

Covenant


Agreements


12. The Borrower shall cause the Project Executing Agencies to: LA Schedule 5, para. 12

submit, at least, semi-annual Safeguards and Social Monitoring Reports to ADB and disclose relevant information from such reports to affected persons promptly upon submission;

Complied with.

if any unanticipated environmental and/or social risks and impacts arise during construction, implementation or operation of the Project that were not considered in the IEEs, the EMPs, the RPs, the CAP (as applicable) and the EMDP, promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan;

Complied with.

engage, prior to commencement of any land acquisition and resettlement activities, qualified and experienced external expert(s) under a selection process and terms of reference acceptable to ADB, to: (i) verify resettlement impacts; (ii) verify timely and full implementation of RPs and CAP (as applicable); (iii) if any unanticipated resettlement/social risks arise during construction, implementation or operation of the Project that were not considered in the RPs, the CAP (as applicable) and the EMDP, promptly inform the Project Executing Agency concerned and ADB of the occurrence of such risks, with detailed description of the event and proposed corrective action plan; and (iv) evaluate RPs’ and CAP’s (as applicable) effectiveness in achieving the desired outcome;

Complied with.

facilitate the external expert(s) engaged under sub-paragraph (c) in the carrying out of any verification activities by such external expert(s);

Complied with.

establish city/town resettlement committees to oversee and monitor implementation of the RPs and the CAP (as applicable); and

Complied with.

report any actual or potential breach of compliance with the measures and requirements set forth in the EMPs, the RPs, the CAP (as applicable) or the EMDP, promptly after becoming aware of the breach.

No breaches or potential breaches of compliance were encountered.

Gender and Development 13. The Borrower shall cause the Project Executing Agencies to adopt the

GAP and to ensure that it is fully implemented in a timely manner over the entire period of the Project, and that adequate resources are allocated for this purpose. In particular, the Borrower shall cause the Project Executing Agencies to ensure that: (i) at least 30% of the unskilled labor force in Works are women; (ii) at least 50% of community facilitators for hygiene and sanitation awareness related activities are women; (iii) women unions provide capacity building training and material support to ensure that women’s needs are addressed during the implementation of the Project; and (iv) awareness and prevention programs on sexually transmitted diseases, including HIV/AIDS, and human trafficking specifically mitigate risks to women.


Partial compliance: Concerning (i) in Hung Yen and Dong Dang more than 30% of the unskilled labor force could not be achieved.

14. Each Project Executing Agency shall cause its PMU to prepare a field manual for the GAP and to conduct training of all Project staff on the GAP. The Borrower shall cause the Project Executing Agencies to closely monitor the implementation of the GAP and to report progress in the Safeguards and Social Monitoring Reports to ADB.


Complied with.

Counterpart Support 15. The Borrower shall cause the Project Executing Agencies to make

available necessary counterpart funds for advance actions to: (i) prepare detailed designs based on the engineering concepts developed under the PPTA; and (ii) initiate the process of engagement of consultants for implementation support, capacity development, and awareness building activities under the Project.


Complied with.

28 Appendix 7

Covenant


Agreements


Governance and Corruption 16. The Borrower, the Project Executing Agencies and the PMUs shall (i)

comply with ADB’s Anticorruption Policy (1998, as amended to date) and acknowledge that ADB reserves the right to investigate directly, or through its agents, any alleged corrupt, fraudulent, collusive or coercive practice relating to the Project; and (ii) cooperate with any such investigation and extend all necessary assistance for satisfactory completion of such investigation.


Complied with.

17. The Borrower shall cause the Project Executing Agencies to ensure that the anticorruption provisions acceptable to ADB are included in all bidding documents and contracts, including provisions specifying the right of ADB to audit and examine the records and accounts of the Project Executing Agencies and all contractors, suppliers, consultants, and other service providers as they relate to the Project.


Complied with.

18. The Project Executing Agencies shall carry out the Project with due diligence and efficiency, and in conformity with sound applicable technical, financial, business, environmental, and socioeconomic urban development practices.

PA, Section 2.01 (a)

Complied with.

19. In the carrying out of the Project and operation of the Project facilities, the Project Executing Agencies shall perform all obligations set forth in the Loan Agreement to the extent that they are applicable to the Project Executing Agencies.

PA, Section 2.01 (b)

Complied with.

20. The Project Executing Agencies shall make available, promptly as needed, the funds, facilities, services, land and other resources as required, in addition to the proceeds of the Loan, for the carrying out of the Project.

PA, Section 2.02

Complied with.

21. In the carrying out of the Project, the Project Executing Agencies shall employ competent and qualified consultants and contractors, acceptable to ADB, to an extent and upon terms and conditions satisfactory to ADB.


Complied with.

22. Except as ADB may otherwise agree, the Project Executing Agencies shall procure all items of expenditures to be financed out of the proceeds of the Loan in accordance with the provisions of Schedule 4 to the Loan Agreement. ADB may refuse to finance a contract where any such item has not been procured under procedures substantially in accordance with those agreed between the Borrower and ADB or where the terms and conditions of the contract are not satisfactory to ADB.


Complied with.

23. The Project Executing Agencies shall carry out the Project in accordance with plans, design standards, specifications, work schedules and construction methods acceptable to ADB. The Project Executing Agencies shall furnish, or cause to be furnished, to ADB, promptly after their preparation, such plans, design standards, specifications and work schedules, and any material modifications subsequently made therein, in such detail as ADB shall reasonably request.

PA, Section 2.04

Complied with.

24. The Project Executing Agencies shall take out and maintain with responsible insurers, or make other arrangements satisfactory to ADB for, insurance against such risks and in such amounts as shall be consistent with sound practice.


Complied with.

25. Without limiting the generality of the foregoing, the Project Executing Agencies undertake to insure, or cause to be insured, the Goods to be imported for the Project against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such Goods.


Complied with.

Appendix 7 29

Covenant


Agreements


26. The Project Executing Agencies shall maintain, or cause to be maintained by their respective PMUs, records and accounts adequate to identify the items of expenditure financed out of the proceeds of the Loan, to disclose the use thereof in the Project, to record the progress of the Project (including the cost thereof) and to reflect, in accordance with consistently maintained sound accounting principles, their operations and financial condition.

PA, Section 2.06

Complied with.

27. ADB and the Project Executing Agencies shall cooperate fully to ensure that the purposes of the Loan will be accomplished.


Complied with.

28. The Project Executing Agencies shall promptly inform ADB of any condition which interferes with, or threatens to interfere with, the progress of the Project, the performance of their obligations under this Project Agreement, or the accomplishment of the purposes of the Loan.


Complied with.

29. ADB and the Project Executing Agencies shall from time to time, at the request of any party, exchange views through their representatives with regard to any matters relating to the Project, the Project Executing Agencies and the Loan.

PA, Section 2.07 (c)

Complied with.

30. The Project Executing Agencies shall furnish to ADB all such reports and information as ADB shall reasonably request concerning (i) the Loan and the expenditure of the proceeds thereof; (ii) the items of expenditure financed out of such proceeds; (iii) the Project; (iv) the administration, operations and financial condition of each Project Executing Agency; and (v) any other matters relating to the purposes of the Loan.


Complied with.

31. Without limiting the generality of the foregoing, the Project Executing Agencies shall furnish to ADB periodic reports on the execution of the Project and on the operation and management of the Project facilities. Such reports shall be submitted in such form and in such detail and within such a period as ADB shall reasonably request, and shall indicate, among other things, progress made and problems encountered during the period under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following period.


Complied with.

32. Promptly after physical completion of the Project, but in any event not later than 3 months thereafter or such later date as ADB may agree for this purpose, the Project Executing Agencies shall prepare and furnish to ADB a report, in such form and in such detail as ADB shall reasonably request, on the execution and initial operation of the Project, including its cost, the performance by the Project Executing Agencies of their obligations under this Project Agreement and the accomplishment of the purposes of the Loan.


Complied with.

33. Each Project Executing Agency shall cause their respective PMUs (as described in paragraph 6 (a) of Schedule 3 to the Loan Agreement) to (i) maintain separate accounts for the Project and for its overall operations; (ii) have such accounts and related financial statements (balance sheet, statement of income and expenses, and related statements) consolidated and audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; and (iii) furnish to ADB, promptly after their preparation but in any event not later than 6 months after the close of the fiscal year to which they relate, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors' opinion on the use of the Loan proceeds and compliance with the financial covenants of the Loan Agreement and the Project Agreement as well as on the use of the procedures for imprest account(s) and statement of expenditures), all


Complied with.

30 Appendix 7

Covenant


Agreements


in the English language. Each Project Executing Agency shall cause their respective PMUs to furnish to ADB such further information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.

34. Each Project Executing Agency shall cause their respective PMUs to enable ADB, upon ADB's request, to discuss their financial statements and financial affairs from time to time with the auditors appointed by such PMU pursuant to subsection (a) hereinabove, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of an authorized officer of such PMU unless such PMU shall otherwise agree.


Complied with.

35. The Borrower shall cause the Project Executing Agencies to ensure that (i) their respective PMUs maintain separate accounts for the Project; and (ii) SGIA holders submit to the relevant FGIA holder: (1) full supporting documents for liquidation and replenishment of the SGIAs; and (2) annual financial statements (balance sheet, statement of income and expenses, and related statements) for consolidated audit and further submission to ADB.


Complied with.

36. The Project Executing Agencies shall enable ADB's representatives to inspect the Project, the Goods and Works and any relevant records and documents.

PA, Section 2.10

Complied with.

37. Each Project Executing Agency shall, promptly as required, take all action within its powers to maintain its corporate existence, to carry on its operations, and to acquire, maintain and renew all rights, properties, powers, privileges and franchises which are necessary in the carrying out of the Project or in the conduct of its operations.


Complied with.

38. Each Project Executing Agency shall at all times conduct its operations in accordance with sound applicable technical, financial, business, environmental, socioeconomic urban development and operational practices, and under the supervision of competent and experienced management and personnel.


Complied with.

39. Each Project Executing Agency shall at all times operate and maintain its plants, equipment and other property, and from time to time, promptly as needed, make all necessary repairs and renewals thereof, all in accordance with sound applicable technical, financial, business, environmental, socioeconomic urban development, operational and maintenance practices.


Complied with.

40. Except as ADB may otherwise agree, the Project Executing Agencies shall not sell, lease or otherwise dispose of any of their assets which shall be required for the efficient carrying on of their operations or the disposal of which may prejudice their ability to perform satisfactorily any of their obligations under this Project Agreement.

PA, Section 2.12

Complied with.

41. Except as ADB may otherwise agree, the Project Executing Agencies shall apply the proceeds of the Loan to the financing of expenditures on the Project in accordance with the provisions of the Loan Agreement and this Project Agreement and shall ensure that all items of expenditures financed out of such proceeds are used exclusively in the carrying out of the Project.

PA, Section 2.13

Complied with.

ADB = Asian Development Bank, CAP = corrective action plan, EMDP = ethnic minority development plan, EMP = environment management plan, FGIA = first generation imprest account, GAP = gender action plan, IEE = initial environmental examination, LA = loan agreement, PA = project agreement, PAM = project administration manual, PCC = provincial people’s committee, PMU = project implementation unit, PPTA = project preparatory technical assistance, RP = resettlement plan, SGIA = second generation imprest account, SPS = safeguard policy statement.

Appendix 8 31

ECONOMIC AND FINANCIAL REEVALUATION

1. Overview. This appendix describes the methodology that was used to assess the economic and financial feasibility of proposed subprojects at appraisal. It updates the results of the analyses using data that were available at the loan closing date and discusses the potential causes of differences between the original and updated results. A. Economic Reevaluation 2. Scope of the Economic Analysis. During preparation, economic cost-benefit analyses were conducted for all nine subprojects to be financed by the project: (i) four urban roads (three in Viet Tri and one in Hung Yen), (ii) three environmental infrastructure projects (solid waste management in Viet Tri, wastewater collection and treatment in Hung Yen and drainage and flood control in Dong Dang), (iii) the upgrading of basic infrastructure in the old town of Hung Yen, and (vi) the development of infrastructure for the Huu Nghi border gate in Dong Dang province. The cost of implementation support, capacity development, and awareness building was allocated to individual subprojects, and not evaluated on a stand-alone basis. 3. Summary of Methodology. Each proposed subproject is the least-cost option that was identified to achieve the objective of meeting estimated demand for the services to be provided by the subproject during a 20-year benefit period following completion of construction (con-struction periods varied from three to five years). For each subproject, incremental economic costs and economic benefits were identified and, to the extent possible, quantified to assess its economic viability. All economic costs and benefits were expressed in real terms, so that the economic internal rate of return (EIRR) would be readily comparable with the economic opportunity cost of capital (EOCC) of 12%, which is also expressed in real terms. 4. Valuation of Economic Costs. The economic cost consisted of the investment cost and the incremental O&M cost including physical contingencies (but excluding price contingencies, taxes and duties). Economic costs were estimated by adjusting financial costs excluding taxes and duties, using the following conversion factors: skilled labor 1.0, unskilled labor 0.7, other inputs 1.0. Economic costs and benefits were expressed in United State Dollars (world price numeraire) by applying a standard conversion factor (SCF) to traded inputs and outputs of 0.9 (the inverse of a SERF of 1.1). These conversation factors were comparable to factors used for the preparation of other recent ADB-financed projects in Viet Nam (Table A8.1). The valuation of economic benefits varies by subproject type and is discussed below.

Table A8.1: Conversion Factors Used for Preparation of Recent ADB-Financed Projects in Viet Nam a

SERF SWRF

(skilled) SWRF

(unskilled)

Central Region Small and Medium Towns Development Project (July 2006)

1.10 2.00 0.60

Water Sector Investment Program PFR1 (June 2011) 1.10 0.67

Socio-economic Urban Development Project in Viet Tri, Hung Yen and Dong Dang (Dec 2011)

1.11 - 0.75

Secondary Cities Development Project (Oct 2013) 1.08 0.97 0.70

Source: Asian Development Bank a SERF: shadow exchange rate factor; SWRF: shadow wage rate factor

32 Appendix 8

5. Assumptions used for estimation of economic benefits.

a. Urban roads Assumptions used at appraisal and completion for all roads:

• Per capita GDP growth: 7.5% per annum • Income elasticities: car 1.2, other 4-wheel vehicles: 1.1, 2-wheel vehicles: 2.0 • Price elasticity: -0.5 • Passenger car units: car 1, bus 20, light truck 2, other trucks 3, motorbike 0.3, bicycle

0.2 • O&M cost: 3% of investment cost

Assumptions used at appraisal and completion for Phu Dong Road (Viet Tri):

• International roughness index decreases from 6 to 2 after subproject completion Assumptions used at appraisal and completion for Truong Chinh Road (Viet Tri):

• Agricultural productivity increases by 20% after subproject completion • Willingness to pay (WTP): D5,000 per trip

Assumptions used at appraisal and completion, Thuy Van Industrial Road (Viet Tri):

• Agricultural productivity increases by 20% after subproject completion Assumptions used at appraisal and completion, University Road (Hung Yen):

• Agricultural productivity increases by 20% after subproject completion • WTP: D5,000 per trip

Assumptions revised at completion: see Table A8.2.

Table A8.2: Economic Cost and 2016 Traffic Volume at Appraisal and Completion

Subproject

Economic Cost ($ million) a 2016/7 Traffic Volume (PCU)

Appraisal (Oct 2011)

Completion (Jun 2017)



Phu Dong Road (Viet Tri) 13.8 12.8 17.5 25.5

Truong Chinh Road (Viet Tri) 13.9 11.4 18.9 8.3

Thuy Van Industrial Road (Viet Tri) 8.9 7.2 24.2 7.9

University Road (Hung Yen) 5.7 4.1 3.5 b 1.6

Sources : Groupe Huite et. al. (appraisal, original results), Project Completion Review Mission (other results) a In mid-2011 prices. b Appraisal estimate for 2018.

b. Solid waste management in Viet Tri Assumptions used at appraisal and completion:

• Willingness-to-pay for solid waste collection: D 3,000 per person per month • O&M cost: 5% of investment cost


Appendix 8 33

Table A8.3: Assumptions Used for Estimation of Economic Benefits Solid Waste Management in Viet Tri



Share of organic waste converted into compost 40% 20%

Economic cost ($ million) a 1.4 0.7

Sources: Groupe Huite et. al. (appraisal, original results), Project Completion Review Mission (other results) a In mid-2011 prices.

c. Wastewater collection and treatment in Hung Yen. This KEXIM-financed subproject was not yet completed, and therefore it was not possible to prepare an economic reevaluation).

d. Drainage and flood protection in Dong Dang

Assumptions used at appraisal and completion:

• Average floor area residential houses, brick: 85m2 • Average construction cost residential houses, brick: D3.2 million/m2 • Average floor area residential houses, light materials: 50m2 • Average construction cost residential houses, light materials: D1.5 million/m2 • Flood damage factor, without project: 0.053 • O&M cost: 5% of investment cost


Table A8.4: Assumptions Used for Estimation of Economic Benefits Drainage and Flood Protection in Dong Dang



Av. residential land price with project (D m) 2.25 1.84

Average daily sales of market stalls protected by project-financed infrastructure (D/day)

3,000,000 500,000

Average yield of vegetables (ton/ha) 10.8 7.5



e. Infrastructure for old town of Hung Yen


• Number of tourists in 2016: 192,000 • Tourists average duration of stay: 1 day • Average expenditure per tourist: $35 per day • Resource cost savings for households previously not connected to the public water supply:

D9,200/m3 (obtaining and storing) plus D3,900 per day (treatment) • Water consumption: 120 liters per capita per day • Land price increases: not considered (neither at appraisal nor at completion)

34 Appendix 8

• O&M cost: 3% of investment cost Assumptions revised at completion: see Table A8.5.

Table A8.5: Assumptions Used for Estimation of Economic Benefits Old Town Infrastructure in Hung Yen



Tourism growth rate 2017-2027 (% p.a.) 30-50% 25-30%

Tourism growth rate 2028 and after (% p.a.) 18% 20%



f. Infrastructure for Huu Nghi border gate.


• Share of tourists in inbound and outbound traffic through border gate: 70% • Average duration of stay in Vietnam of tourists passing through border gate: 3 days • Average expenditure per tourist passing through border gate: $30 per day • Value of time saved in border processing: 5% of total economic benefits from increases in

economic benefits from tourism • Fee revenue: not considered (neither at appraisal nor at completion) • O&M cost: 5% of investment cost


Table A8.6: Assumptions Used for Estimation of Economic Benefits Huu Nghi Border Gate



Inbound and outbound traffic 2016 (million) 1.67 1.19

Traffic growth rate 2017-2027 (% p.a.) 30-50% 25-30%

Traffic growth rate 2028 and after (% p.a.) 18% 20%

Size of parking area (ha) 5.2 1.9



6. Economic reevaluation of urban roads. At appraisal, the estimated EIRRs of the four roads subprojects ranged from 11.4% to 15.4% (Table A8.7). The Phu Dong Road and Thuy Van Industrial Road were prepared as alternatives to existing routes, and their quantified economic benefits mostly consisted of savings on vehicle operating costs and travel time savings. The Truong Chinh Road and University Road are new roads and their economic benefits were estimated as the sum of: (i) willingness-to-pay for access by prospective road users, and (ii) increased agricultural productivity. For all road subprojects, the main determinant of total economic benefits is the volume of traffic that will use the roads. In mid-2017, the PMU of Viet Tri

Appendix 8 35

estimated average annual daily traffic on the Phu Dong Road at about 13,400 vehicles. This was equivalent to about 25,500 passenger car units (PCUs), or about 145% of the appraisal estimate for the first year of operation (17,500 PCUs). The economic cost of the road, expressed in mid-2011 prices, was slightly lower than the original estimate ($13.8m at appraisal, $12.8m at completion). Because actual traffic in the first full year of operations was about 45% higher than expected at appraisal, and costs were almost the same, the reevaluated EIRR (15.7%) was higher than the original EIRR (11.4%). A similar analysis was prepared for the other three roads (Truong Chinh Road and Thuy Van Industrial Road in Viet Tri and the University Road in Hung Yen). As shown in Table A8.2, actual traffic volumes in mid-2017 were substantially lower than anticipated at appraisal for these roads. The economic cost of one of the three roads was lower than expected, but the reduction in benefits was far higher, so that EIRRs at completion were lower than at appraisal (see Table A8.7 for EIRRs estimated at appraisal and at completion). 7. Economic reevaluation of environmental infrastructure.

(i) Solid waste management in Viet Tri. The economic costs of this subproject were much lower than expected (about $0.7m at completion, compared to $1.4m at appraisal). Economic benefits were also lower than expected, mainly because of lower than expected revenue from compost sales (which accounted for about 85% of total economic benefits at appraisal).1 Because the reduction in cost was higher than the reduction in benefits, the EIRR estimated at completion was higher than the appraisal estimate (27.2% instead of 13.9%).

(ii) Wastewater collection and treatment in Hung Yen. This KEXIM-financed facility was not yet completed, and it was therefore not possible to prepare an economic reevaluation thereof.

(iii) Drainage and flood protection in Dong Dang. Expressed in mid-2011 prices, the economic cost of this subproject was slightly lower than expected at appraisal ($3.7m instead of $4.0m). At the same time, it appears that benefits were estimated based on optimistic assumptions with regards to avoided damages to residential buildings and interruptions to sales on local markets. As a result, the EIRR at completion was lower (12.4%) than at appraisal (18.1%).

8. Economic reevaluation of infrastructure for old town of Hung Yen. The provision of basic infrastructure in the historical center of Hung Yen (mostly consisting of roads, drains, and piped water supply) would: (i) improve its attractiveness as a tourist destination, and (ii) improve living conditions. The economic benefits of these improvements were mostly quantified by estimating increases in tourist revenue (which were expected to account for over 95% of all quantified benefits). Although the economic cost of the subproject was substantially lower than estimated at appraisal ($2.0m instead of $3.5m), increases in tourism revenue were based on the same unrealistically high annual increases as were used for the Huu Nghi Border Gate subproject (see below). After adjusting these for the more conservative growth rates of 18% until 2020 and 20% thereafter, the EIRR at completion was 6.1% (vis-à-vis 17.8% at appraisal). 9. Economic reevaluation of infrastructure for Huu Nghi Border Gate. At appraisal, the quantifiable economic benefits of this subproject were assumed to consist of benefits from: (i) the value of time saved in border processing, (ii) additional tourist spending attributable to project-financed investments in the border gate, and (iii) increased fee revenue for the border gate

1 The weighted average price of compost was projected accurately (about D280 per kg), but the share of organic waste

that was converted into compost was far higher than is common in Viet Nam (the appraisal estimate was 40% and the PMU estimate 100%). For this analysis a more conservative estimate of 20% was used.

36 Appendix 8

authority as a result of increased passenger and freight volumes. In all years, economic benefits from additional tourist spending (as measured by the increase in passenger traffic at the border gate) would account for over 95% of total economic benefits, and the value of time savings for most of the remainder. According to forecasts made by the preparation consultant, inbound and outbound passenger traffic would increase from about 700,000 persons in 2010 to almost 1.7m in 2016, assuming an average annual growth rate of 15%. Passenger traffic was assumed to increase by 30-50% per year during 2017-2027 and by 25-30% per year from 2028 onwards (even though the feasibility study of the preparation consultant claims that more modest increases of 18-20% were assumed). Mainly because of these very high annual increases, the EIRR was estimated at 38.6%. In 2016, actual passenger traffic was almost 30% lower than estimated by the preparation consultant (about 1.2m instead of 1.7m). Because benefits from increases in revenue from tourism accounted for most of the subproject’s total benefits, the economic benefit stream was also substantially lower than expected; the benefit stream was further reduced by applying the original annual increases of 18-20% instead of the unrealistically high growth rates of 25-30%. The actual economic cost was lower than the economic cost estimated at appraisal, partly because a reduction in the parking area from 5.2ha to 1.9 ha ($17.5m instead of $22.7m). As a result, the EIRR of the infrastructure for the Huu Nghi border gate was substantially lower at completion than at appraisal (about 17.5% instead of 38.6%). A weakness of the original analysis is that the model used for estimating economic benefits attributes all growth in passenger traffic to the project, even though part of the increase would likely also have been realized in the absence of project-financed improvements in the border gate infrastructure. Table A8.7: Results of Economic Evaluation of Subprojects at Appraisal and Completion

Subproject

EIRR (percent) Level of Efficiency a





Phu Dong Road (Viet Tri) 11.4 15.7 Less than efficient

Efficient

Truong Chinh Road (Viet Tri) 15.0 6.8 Efficient Less than Efficient

Thuy Van Industrial Road (Viet Tri) 12.3 7.9 Efficient Less than Efficient

University Road (Hung Yen) 15.4 6.2 Efficient Less than Efficient

Solid waste management (Viet Tri) 13.9 27.2 Efficient Efficient

Wastewater collection and treatment (Hung Yen)

13.6 NA c Efficient NA

Drainage and flood protection (Dong Dang)

18.1 12.4 Efficient Efficient

Infrastructure for old town (Hung Yen) 17.9 6.1 Efficient Less than Efficient

Huu Nghi border gate (Dong Dang) 38.6 17.5 Efficient Efficient

Sources: Groupe Huite et. al. (appraisal, original results), project completion review mission (other results) a At appraisal: EIRR > 12%: efficient, EIRR < 6%: inefficient, otherwise less than efficient. At completion: EIRR > 12%: efficient, EIRR < 6%: inefficient, otherwise less than efficient. b Component was not completed at the time of writing the project completion report.

Appendix 8 37

B. Financial Reevaluation

10. Scope of the financial analysis. Given that most subprojects would not generate incremental financial revenue, the financial analysis that was prepared at appraisal did not attempt to estimate financial internal rates of return for individual subprojects. Instead, a fiscal analysis was prepared for each of the implementing agencies (the CPCs of Viet Tri and Hung Yen, and the PPC of Lang Son). The objective of the analysis was to assess the financial capacity of the agencies to cover the incremental operating and maintenance expenditure of project-financed assets. 11. Financial reevaluation of fiscal capacity of PPCs. At appraisal, projections were prepared for the overall financial position of each implementing agency. These projections confirmed the financial capacity of the agencies to cover the incremental O&M expenditure of the assets to be financed by the project. At completion, it was found that actual revenues during 2012-2016 were higher than estimated at appraisal for Viet Tri and Lang Son. For Hung Yen, between 2012-2015 the revenue of CPC Hung Yen estimated at appraisal was higher than actual revenue but in 2016 actual revenue had overtaken the appraisal estimate (Table A8.8). Operating expenditures were higher than projected, resulting in lower-than-expected operating balances. However, the operating balances in 2016 were still substantially higher than the incremental O&M expenditure projected at appraisal for the period 2016-2020 (Table A8.9).2 This suggests that, at completion, all three implementing agencies had the required fiscal capacity to finance incremental O&M expenditures needed for project-financed investments. 12. The major variation between the financial projections at appraisal and completion is because the preparation of long-term projections of the revenue of sub-national governments in Viet Nam is complex. The main reasons are: (i) subnational government revenue (from pre-existing sources) is driven by increases in real economic growth and by general price inflation; (ii) in Viet Nam, these figures are usually high (each 5-10% p.a.) so that minor changes in assumed rates tends to have significant impacts on revenue projection in nominal terms in the medium and long term; and (iii) subnational government revenue is influenced by revenue from land sales, which are highly volatile and influenced by territorial changes and changes in class of city. When the above reasons are applied to the projections that were made at appraisal, the following observations can be made: (i) the assumed operating balances of all three subnational governments were relatively high; and (ii) the assumed increase in expenditure was slower than the increase in revenue, especially for CPC Viet Tri. The two observations could have been avoided by better projection methods.

Table A8.8: Revenue and Expenditure of Implementing Agencies, 2012-2016 (D trillion)

Implementing Agency 2012 2013 2014 2015 2016

CPC Viet Tri

At appraisal

Revenue 390 421 477 516 575

Expenditure 340 366 393 423 452

Operating Balance 50 55 84 93 123

At completion

2 Information on actual incremental O&M expenditure was not available at completion, given that project assets were

created shortly after completion.

38 Appendix 8

Revenue 1,097 1,096 1,244 1,401 1,318

Expenditure 1,002 990 1,070 1,246 1,212


Completion as % appraisal

Revenue 281 261 261 271 229

Expenditure 295 271 272 294 268


CPC Hung Yen

At appraisal

Revenue 575 639 714 803 908

Expenditure 266 319 383 459 550


At completion

Revenue 410 538 640 728 992

Expenditure 372 519 618 716 958



Revenue 71 84 90 91 109

Expenditure 140 162 162 156 174


PPC Lang Son

At appraisal

Revenue 4,526 5,416 6,483 7,758 9,285

Expenditure 3,980 4,822 5,852 7,114 8,659


At completion

Revenue 6,483 7,092 7,709 8,930 NA

Expenditure 6,444 7,012 7,700 8,906 NA

Operating Balance 40 80 10 25 NA


Revenue 143 131 119 115 NA

Expenditure 162 145 132 125 NA

Operating Balance 7 13 2 4 NA

CPC = City People’s Committee, PPC = Provincial People’s Committee

Sources: Groupe Huite et. al. (appraisal, original results), project completion review mission (other results)

Table A8.9: Incremental O&M and Operating Balance, 2016-2020

Implementing Agency 2016 2017 2018 2019 2020

Incremental O&M requirement, at appraisal (D trillion)

CPC Viet Tri 27 30 29 32 35

CPC Hung Yen 8 11 11 12 12

PPC Lang Son - 4 4 4 4

Appendix 8 39

Incremental O&M requirement, as % of actual operating balance in 2016 a

CPC Viet Tri 26 28 27 30 33

CPC Hung Yen 22 30 32 34 36

PPC Lang Son - 15 16 16 17

CPC = City People’s Committee, PPC = Provincial People’s Committee

Sources: Groupe Huite et. al. (appraisal, original results), project completion review mission (other results) a 2015 for PPC Lang Son (no data available for 2016)

40 Appendix 9

LAND ACQUISITION AND RESETTLEMENT A. Introduction

1. In December 2011, ADB approved Loan 2826-VIE for the Comprehensive Socioeconomic Urban Development Project in Dong Dang-Viet Tri-Hung Yen. The project consists of the construction and upgrading of basic urban infrastructure in three above-mentioned medium-sized cities along the North-South economic corridor. The project aims to contribute to developing these cities into economic growth centers, complementing the capital Hanoi and easing migratory pressures on larger urban centers.

2. There were 1,958 affected households (AHs) in the project area with 767,346.59 m2 of land that was affected. Affected lands also included project areas for the urban roads connecting Noi Bai-Lao Cai expressway with the city center, wastewater treatment plant, infrastructure in old town, improvement of Huu Nghi border gate facilities, and improvement of drainage and flood protection. Out of these, 1,214 AHs were severely affected as these households lost more than 10% of the productive landholdings, in addition to 142 households who had to relocate. There were 187 households belonging to vulnerable groups, including 20 ethnic minority households from the Tay ethnic group.

3. The project, thus, falls under ADB’s Safeguard Policy Statement (SPS) category A for involuntary resettlement and category B for indigenous people, due to its nature and scale of resettlement impacts. To address the relocation and compensation of affected people, related resettlement and ethnic minority (indigenous peoples) safeguards documents have been prepared in accordance with the ADB’s SPS. Three resettlement plans (RPs) and one corrective action plan (CAP) as well as one indigenous peoples plan (IPP) were prepared during the preparatory stage for the subprojects of Viet Tri, Hung Yen, and Dong Dang. From 2013 to 2016, six updated resettlement plans (uRP) and one resettlement due diligence report (DDR) have been prepared and approved for the respective components as summarized in Table A9.1 below.

Table A9.1. Social Safeguards Documents Prepared for the Project

Timeframe Subproject Component Safeguard

Documents Required

Notes

August 2011 Dong Dang

Dong Dang Resettlement Plan

(RP)

Dong Dang Border Gate

Facilities (DD1a)

Resettlement Corrective Action Plan

(CAP)

This CAP is to be considered as an addendum to the Dong Dang RP with policies, principles and entitlements to apply as set out in the RP.

Viet Tri Viet Tri RP Hung Yen Hung Yen RP

December 2013

Viet Tri Thuy Van

Industrial Zone Road

Updated Resettlement Plan (uRP)

February 2014 Dong Dang

Huu Nghi Border Gate

Facilities (DD1a)

Resettlement Due Diligence Report

(DDR)

The land acquisition of entire economic zone of Huu Nghi Border Gate was implemented in 2010 before the project’s involvement. DDR is prepared to monitor the CAP implementation as prepared in 2011.

Appendix 9 41

Timeframe Subproject Component Safeguard

Documents Required

Notes

March 2014 Viet Tri Phu Dong

Road (VT1) uRP

April 2014 Hung Yen Hung Yen

Urban Road (HY3)

uRP

September 2014

Viet Tri Truong Chinh Road (VT2)

uRP

June 2016 Viet Tri

Thuy Van Road

(Additional Section)

uRP Additional section of 590m to connect Thuy Van road to the red river dyke

December 2016

Hung Yen

Hung Yen Wastewater Treatment

System (HY1)

uRP Co-financed by Export-Import Bank of Korea

CAP = corrective action plan; uRP = updated resettlement plan. Source: Viet Tri, Hung Yen, and Lang Son PMUs (2017).

4. The preliminary RPs were prepared in accordance with Viet Nam’s laws and ADB’s 2009 SPS – Requirements 2 and 3. The tools available to mitigate adverse impacts were: (i) compensation to replace lost physical and non-physical assets, (ii) assistance for relocation, and (iii) assistance for rehabilitation. Resettlement plans were prepared and implemented for each component. The detailed measurement survey (DMS) was conducted for the assets of affected households (land, crops and trees and structures). Most of the assets were adequately counted (in some case of inadequacy, additional DMS was carried out upon the request of affected households). The RPs specified the entitlements for the identified impacts, and all were subject to endorsement and acceptance by both the relevant government authorities and ADB.

B. Land Acquisition and Resettlement Activities

5. A total of 1,958 AHs were affected by the project, with D 228,670,664,670 in compensation and assistance paid. Of the affected households, 744 were marginally affected, and 1,214 severely affected. A further 187 affected households were vulnerable. The breakdown by subproject is presented in Table A9.2.

Table A9.2. Affected Households by Subprojects

No. Subproject/

Area Number of AHs

Number of relocated

households

Number of severely affected

households

Number of vulnerable

households

I Viet Tri

1 VT1 661 44 458 40

2 VT2 465 67 320 59

3 VT3 310 0 168 18

II Hung Yen

1 HY1 91 0 70 0

2 HY2 0 0 0 0

3 HY3 330 22 160 14

III Dong Dang

1 DD1a 0 0 0 0

2 DD1b 39 9 28 14

42 Appendix 9

No. Subproject/

Area Number of AHs

Number of relocated

households

Number of severely affected

households

Number of vulnerable

households

3 DD2 62 0 10 42

TOTAL 1,958 142 1,214 187

Source: Viet Tri, Hung Yen, Lang Son PMUs (2017).

6. Impacts on Land. The project affected different types of land. The total land area affected by the project is 767,346.59 m2, including agricultural land (459,344.34 m2), forest land (91,565.6 m2), residential land (54,891.75 m2), garden land (44,175.9 m2) and land managed by the State (13,153.9 m2). Table A9.3 shows the types of affected lands by subproject.

Table A9.3. Land Affected by The Project (m2)

No. Subproject/

Area Residential

land Agricultural

land Garden

land Forest land

Managed by state

Others Total

Acquired

I Viet Tri

1 VT1 4,305.4 137,134.3 44,175.9 20,501.7 351.9 - 206,469.2

2 VT2 45,535.6 106,802.8 - 14,025.7 - - 166,364.1

3 VT3 - 91,914.6 - - - - 91,914.6

II Hung Yen

1 HY1 - 69,566 - - 12,802 - 82,368

2 HY2 - - - - - - 0

3 HY3 1,121.15 52,202.44 - - - - 53,323.59

III Dong Dang

1 DD1a - - - - - - -

2 DD1b 880 - - 57,038.2 - 93184 151,102.2

3 DD2 3,049.6 1,724.2 - - - 11031.1 15,804.9

TOTAL 54,891.75 459,344.34 44,175.9 91,565.6 13,153.9 104,215.1 767,346.59


7. According to ADB’s SPS (2009) and the Government of Viet Nam’s policies on compensation, assistance and resettlement, the implementation of the RPs ensured that all affected people were compensated for their losses at replacement cost and proposed life rehabilitation methods to help them to improve or at least maintain living standards and income generation capability to the pre-project level. The compensation, assistance and resettlement commenced in 2013 and was completed in 2016. Based on the uRPs and the data provided by PMUs, the total amount of compensation and assistance for affected households was roughly D 228,670,664,670 (equivalent to $10,073,598 assuming an exchange rate of 1 USD = D22,700). Table A9.4 provides total compensation made for each subproject.

Appendix 9 43

Table A9.4. Total Compensation Cost

No. Subproject and

Area

Number of Affected

Households (AHs)

Total Affected Land Area (m2)

Total compensation, assistance, and

resettlement cost (D)

I. Viet Tri

1 VT1 661 206,469.2 49,396,349,000

2 VT2 465 166,364.1 96,707,658,000

3 VT3 310 91,914.6 7,670,500,600

II. Hung Yen

1 HY1 91 82,368 21,479,000,000

2 HY2 0 0 -

3 HY3 330 53,323.59 35,820,877,297

III. Dong Dang

1 DD1a 0 0 -

2 DD1b 39 151,102.2 10,132,915,075

3 DD2 62 15,804.9 7,463,364,698

TOTAL 1,958 767,346.59 228,670,664,670


8. The implementation of resettlement activities required the involvement of agencies at the national, provincial, district, and commune levels. The provisions and policies of the resettlement plans formed the legal basis for the implementation of resettlement activities. Compensations were managed by City Compensation, Assistance and Resettlement Committees (CARCs), which followed the resettlement plans that had been prepared by the PMUs, reviewed by Provincial People’s Committees, and endorsed by ADB. All affected households directly received compensation during the payment meetings which had participation from PMUs, CARCs, and people’s committees and village authorities. Documents related to the project were disseminated and distributed to the affected households. All entitlements of affected people, including compensation and allowances, were delivered prior to displacement from houses, land, and assets.

9. Information Dissemination and Public Consultation. Project information and compensation policies were disseminated to the affected households upon commencement of resettlement activities. Consultation with local communities and affected people were also implemented throughout the project cycle in compliance with the principles and regulations stated in the uRPs. The external monitoring consultants confirmed the affected households’ participation in the community meetings and consultations organized by the CARCs at the affected communes and wards. The following key topics were covered in these meetings: (i) project’s objectives and schedule; (ii) rights and entitlements of the affected households to compensation and resettlement; (iii) necessary assistances for severely affected households, relocating households, and vulnerable households; (iv) income and livelihood restoration measures targeting the affected people; and (v) grievance redress mechanism.

10. Regarding information disclosure, the disclosure of resettlement plans was through the distribution of project information brochures (in Vietnamese) to the affected communities. Copies of resettlement plans were placed in provincial, district, and commune offices. All resettlement plans submitted to ADB for review were posted on the ADB website immediately upon ADB approval.

44 Appendix 9

11. Detailed Measurement Survey Process. The DMS activities were led by CARCs and their established inventory units, comprising staff of CARCs, officials of the project communes/wards, and representatives of AHs. The external monitoring consultants reported on the participation of the affected households in the DMS process, the accuracy of the inventory of affected assets, and on the payment of compensation, both unit prices and total amounts paid. This process identified a relatively small proportion of discrepancies that had been caused by either error in the initial inventory process or by minor design changes. These discrepancies were corrected, and additional compensation paid where necessary.

12. Compensation for Assets. Compensation prices were managed by CARCs, which followed the prescriptions of the resettlement plans that had been prepared by the PMUs and endorsed by ADB. The external monitoring consultants reviewed unit prices in the local market and concluded that they were consistent with replacement costs. Further, surveys show that about 80.1% of responded affected households in all three subprojects were satisfied with their compensation rates whereas the remaining 19.9% of surveyed affected households said that the compensation rates for their affected land did not meet their expectation. However, these households did not state why they were not satisfied, nor did they have any complaints regarding compensation issues.

13. Resettlement Assistances and Other Support Payment. As of 2016, all affected households have settled in the new resettlement sites. Regarding the resettlement areas, six sites have been developed and arranged for the affected households who opted to move. The basic infrastructure including water and electricity supply, drainage system and lighting system within the area had been completed before the residents moved to the new residential areas. The resettlement land plots in these areas range from 90m2 to 300m2 for the construction of new houses, depending on the provincial regulations. Both men and women from each household were provided with land use rights certificates. For the households who voluntary self-relocated, rent was provided until they had completed building their new house.

14. Additional allowances were provided for restoration of income and living standards for resettled persons using a set of norms based on costs of temporary accommodation and number of persons per household. For vulnerable affected households, including poor, ethnic minority people and woman headed households, additional compensation, special allowances were provided to help them improve their socio-economic status. Severely affected households were also provided allowances of job training and subsistence so that they have restored and improved their living standard. The eligible affected households are also engaged in productive livelihood activities (i.e. agriculture, livestock rearing, home gardening, etc.). Provision of training courses on farming and livestock raising techniques under the livelihood restoration program was carried out as part of the Gender Action Plan, thus undertaken by the respective Women’s Union of each city. These courses benefited 280 participants. In addition, livestock breeds such as pigs, chicken, and cows were provided.

15. Grievance Redress. A four-step grievance mechanism was set up in the subprojects’ uRPs and disclosed to the APs during compensation implementation. Based on this mechanism, complainants can lodge their complaints to various levels. However, the external monitoring consultant reported no complaint was lodged to high levels as the APs’ complaints were solved at commune or district level. Most of the complaints received were related to land ownership verification, errors in DMS process, missing entitlements, and impacts that emerged during the construction period. CARCs in cooperation with the PMUs, local authorities, and AHs reviewed and solved the complaints on a case-by-case basis. To date, there is no pending issue that has not been resolved.

Appendix 9 45

C. Conclusion

16. In general, the implementation of compensation and resettlement activities of the project complied with ADB’s SPS 2009. The coordination among agencies responsible for compensation and resettlement was assessed effective. A compensation and resettlement database were established and updated in the PMUs’ offices as well as CARCs’ offices to support reporting and monitoring. Internal monitoring reports and external monitoring reports were prepared and kept at the PMU offices as well as uploaded on the ADB website.

17. Although the land acquisition and resettlement procedures proved to be much more extensive and lengthier than expected at appraisal, the requirements for adequate compensation, and mitigation of adverse impacts on incomes, including those of vulnerable people, have been achieved. Surveys by the external monitoring consultants show that the affected households are highly satisfied with the outcomes.

46 Appendix 10

SUMMARY OF GENDER EQUALITY RESULTS AND ACHIEVEMENTS

I. GENDER ANALYSIS AND PROJECT DESIGN FEATURES

A. Gender Issues and Gender Action Plan Features

1. The Gender Action Plan (GAP) identified the following gender issues related to the project: (i) women have less opportunity to participate in decision making related to urban services development; and (ii) women and men’s livelihoods are to be severely impacted because of involuntary resettlement. However, the needs of women for effective livelihood restoration were at risk of not being adequately addressed in resettlement planning and implementation if planners and implementers only assess impacts at the household level and do not engage women in the planning of income restoration activities. Other concerns were (i) unequal access for men and woman to human resource and skills development opportunities in training; (ii) women are most vulnerable to risks of HIV transmission as well as the heightened risk of human trafficking; and (iii) drainage construction and flood protection infrastructure near Dong Dang market could affect the livelihoods of 183 vendors (most of whom are ethnic minority women).

2. The project’s GAP addressed these issues through the following key gender targets: (i) at least 30% of unskilled labor force in civil works are women; (ii) at least 50% of community facilitators of hygiene and sanitation awareness raising activities are women ; (iii) 50% of positions in community-based waste management groups are held by women; (iv) 40%–50% of positions in community-based monitoring committees are held by women; (v) at least 30% of participants of public consultation meetings for displaced households are women; (vi) separate supplementary consultation meetings are conducted with women for income restoration and resettlement needs; (vii) 100% participation of female staff in all trainings provided by the project; (viii) capacity building to the Women’s Union (WU) as well as the project’s communication strategy; and (ix) collect sex-disaggregated data properly and include it in project progress reports.

B. Overall Assessment of Gender-Related Results and Achievements

3. The project GAP implementation is rated successful. As of completion, 79% of the 33 GAP activities are implemented (26/33 actions) and 88% of GAP targets due are either achieved (11/16 targets) of partially achieved (3/16 targets). The project GAP consisted of 58 actions, including 21 actions with quantitative targets. 4 of the actions and 5 of the quantitative targets were dropped for having become inapplicable during project implementation. This leaves the project with 33 actions and 16 targets due under the GAP. 4. The key achievements were: (i) 340 (98% women) out of 345 community facilitators of hygiene and sanitation awareness raising activities in Viet Tri, Dong Dang and Hung Yen (target 50%); (ii) 100% of positions in 49 community-based waste management groups in 3 cities were held by women (target 50%); (iii) 18 women (46%) of the 39 affected people participated in the consultation meeting for displaced households (target 30%); (iv) 280 people (180 females) participated in the separate supplementary consultation meetings on income restoration program (IRP) and later participated in IRP training; (v) 1,217 (71.8%) female participants out of 1,695 participants in the trainings on road safety, environment and sanitation, HIV/AIDS and anti-human trafficking prevention, environment and climate change; (vi) and 3,054 (88%) women out of 3,470 people participated in campaigns on the above contents; and (vii) 17 (100%) PMUs female staff participated in the gender training (target 100%).

Appendix 10 47

C. Gender Equality Results

1. Participation, access to project resources and practical benefits 5. The project promoted effective participation and benefits of project resources for women. The practical benefits for women include: (i) 1,217 (71.8%) women out of 1,695 participants in the training courses and 3,054 (88%)

women among 3,470 people participated in the communication campaigns on road safety, environment and sanitation, and HIV/AIDS and human trafficking prevention.

(ii) 706 (49.3%) women out of 1,306 participants in the consultation meetings on scope, detail design, income restoration, level of impact of the project and project policies.

(iii) 188 (67.1%) women out of 280 participants from the severly affected households participated in 9 training courses on livelihood restoration.

(iv) 1,318 (21.2%) female unskilled labors among 6,213 unskilled labors (person months) were hired by the contractors for all civil works in Viet Tri, Hung Yen and Dong Dang cities.

(v) 183 households and women from these households in Dong Dang town have sustainable incomes from their uninterrupted business during flood season and save time for access to social services and household cleaning after floods.

Box 1: Project impact on practical and strategic benefits for women

Ms. Tran Thi Huyen, who lives in Vuon Sai village, Dong Dang town

acknowledged the improvement in drainage capacity of the existing

system. This improvement protected the market and the residential areas

from frequent floods. In addition, the road built along the canal made

traveling more convenient and saved time for the local people to go to

the market, health care center and schools. As a result, Ms. Huyen’s

shop received more customers and thus her income increased. Further,

she and people in her village improved awareness on environmental

sanitation thanks to the communications campaign conducted by the

Dong Dang Town Women's Union. The improved drainage and flood

protection subproject also saves them time from cleaning and tidying

houses after floods.

2. Strategic changes in gender relations

6. The project promoted strategic changes in gender relations and women’s empowerment in many aspects. (i) The representatives of district WUs in the Resettlement Committees have better

knowledge and capacity to disseminate information to the local communities and affected households on entitlement. This helps to improve respect from the community.

(ii) The project has built supervision capacity for Community Supervision Board (CSB) members, including for female members. These women became confident supervisors during civil works and raised concerns of women in the community.

(iii) The local Women Union’s representatives play leadership roles in community-based waste management groups (100%, against a target of 50%) and as community facilitators of hygiene awareness raising activities (98%, against a target of 50%).

48 Appendix 10

(iv) The Women’s Union staff of three cities have developed capacity to plan, lead the implementation, monitor and report the capacity building program for women in communities and IRP. At the commune level, women acted as facilitators of the communications campaigns on gender equality, road safety, HIV/AIDS and human trafficking prevention, and environmental sanitation.

(v) Lessening women’s time poverty is an apparent result of the project. The improved drainage and flood protection lessened the frequency and severity of floods, and consequently, the time women spent cleaning and tidying up their homes and business. Similarly, the new and better roads improved their access to the city center, lessened travel time, and made it more convenient to reach social services and markets.

Box 2: Project impact on women’s empowerment

Ms. Nguyen Thi Hai Van- Chairwoman – Dong Dang town WU. Ms.

Van has participated in the training courses on gender equality,

HIV/AIDS and human trafficking prevention, and climate change. She

has also played a role of community facilitator of the project at

grassroots level.

Through the meetings of WU and communications campaigns, she has

delivered the knowledge which she gained from training to raise the

community’s awareness on public health, environmental management,

and traffic safety.

Currently, the women in Dong Dang town are actively involved in

environmental sanitation groups for cleaning the road in the villages

so that the sanitation of the town is always clean and maintained. Being

a community facilitator has increased Ms. Van’s confidence in herself

and strengthened her voice in community decision-making.

Ms. Van is one of 125 trained facilitators in Dong Dang town. All of

them are women.

Appendix 10 49

3. Contribution of gender equality results to project outcomes and effectiveness

7. Relevance: The project design in general addresses gender issues adequately and includes gender targets in the DMF. Four out of 8 outputs have relevant gender targets. In addition, the GAP (consisting of 58 actions, including 21 actions with quantitative targets) aligns with the DMF and includes relevant gender actions and targets. 8. Effectiveness: Gender equality results contributed to achieving the project DMF’s outputs. GAP implementation contributes to reducing employment gender gaps, building leadership capacity for Women’s Union members in leading community-based hygiene and sanitation groups; reducing social risks such as HIV/AIDS and STD transmission and human trafficking in borders towns, and built capacity for Women Union staff to plan and lead implementation of the social risks awareness raising campaigns, IRP program, and reporting. Specifically, the contributions of gender mainstreaming to achieving DMF outputs are as follows:

(i) Output 1: 34% (841 among 2467 person-month) of the unskilled civil works labor force in Viet Tri urban roads were women (target 30%).

(ii) Output 4:100% (135 women) of community facilitators of hygiene and sanitation awareness-raising activities were women in Hung Yen old town (target 50%).

(iii) Output 6: 1,119 women (84.5%) out of 1,323 people participated in various trainings and campaigns on HIV/AIDS prevention, STD, and anti-trafficking in Dong Dang town and Bao Lam commune.

(iv) Output 8: Capacity building programs were implemented by WUs in three cities/town as follows: (i) WUs provided capacity development training on topics relevant to project (e.g. road safety, environment and sanitation, HIV/AIDS and anti-human trafficking, environment and climate change) for 1,695 participants of which 1,217 (71.8%) were women; (ii) there were 188 female participants (67.1%) out of 280 participants in the IRP program in three cities.

II. LESSONS LEARNT AND RECOMMENDATIONS

1. Crucial factors that contribute to success of GAP implementation

9. Several critical factors contributed to successful GAP implementation.

(i) The project managed to set up a reporting system with sex-disaggregated data collection and reporting. This helped the PMUs to monitor the GAP and adjust planning to achieve many important gender actions and targets.

(ii) The city/district WUs were provided opportunities to play an important role in GAP implementation. They planned and implemented capacity building and communication campaigns to raise local awareness about environmental sanitation, HIV/AIDS prevention, road safety, and the income restoration program.

(iii) ADB supported GAP implementation by advising on technical issues and ensured budget was allocated to GAP implementation.

2. The project faced following constraints during GAP implementation

11. Key challenges for GAP implementation are below.

(i) The target of “at least 30% of PMUs staff will be female in three cities” was not

50 Appendix 10

realistic since most PMU positions required staff with technical backgrounds, traditionally held by men.

(ii) The targets “at least 30% of unskilled labor force in civil work is women” in output 4 and output 7 was not feasible. This is because women in Dong Dang and Hung Yen have better job opportunities (small trading activities in Hung Yen or carrying goods across the border in Dong Dang).

(iii) The target “40-50% of positions in community-based monitoring committees are held by women” was not feasible.

(iv) The delay of output 3 implementation led to some targets and actions being dropped.

3. Sustainability

12. The elements of gender equality listed below will likely be sustained beyond project life.

(i) 340 trained community female facilitators and WU’s staff have developed

facilitation capacity and continue to lead the environmental sanitation program and 49 community-based waste management groups in 3 cities.

(ii) 41 female members of CSBs who were trained on public work’s community monitoring will continue to operate as CSB members for other projects.

(iii) The income restoration and training program promoted the participation of women in training (safe vegetable growing by the women from Viet Tri City and chicken breeding techniques in Lien Phuong commune, Hung Yen City) and helped raise their incomes. Their incomes will be sustained beyond the project and promote more equal status of women as income earners.

(iv) The project built the capacity of city and town Women’s Union staff in planning, leading implementation, monitoring and reporting on development projects to donors. The Women’s Union staff capacity will help them to implement other development projects and programs in the future.

(v) About 900 households have benefited from reduced flooding impacts in Dong Dang. The residents, especially women, have shorter travel times to markets, health care centers and schools, and less flood damage. 183 ethnic minority women now have uninterrupted income during the rainy season.

4. Recommendations (i) GAP targets should be set realistically with adequate gender analysis during

project design. For instance, targets on women’s participation as unskilled laborers should have considered available alternative livelihoods for women in the target areas to ensure the targets were realistic.

Appendix 10 51

Table A10.1. Gender Action Plan Monitoring Table

Project outputs Proposed actions/targets Implemented status Note/ issues/challenges

and recommendations

Output 1: Viet Tri Urban roads constructed and improved

1. Action 1: Effective Incorporation of Identified needs of men and women in project design (i) Convenient meeting time (ii) Number of meetings/number

of participants (male/female) (iii) Women’s opinion (iv) Men’s opinion (v) Separate consultation with

women as needed

Achieved: 13 consultations meetings were conducted with the participation of male and female residents. The contents of the consultation meetings focused on project objectives and policies, project technical design, potential and actual impacts or risks and income restoration program. The meetings were held from 8-10 am or 2-4 pm and convenient for women’s participation. These were convenient because during these times women were not busy with housework. 341 women out of 597 people (57%) joined these meetings, of which 140 participated in women-only consultations Women raised concerns on land loss compensation prices, which they wanted to be paid in cash; and the livelihood restoration support for women over 40-years old. Men’s concerns were on livelihood restoration for men over 50-years old. Both men and women raised concerns on road safety, particularly the need for traffic signs and speed bumps near the residential and school areas. Separate consultations with severely affected households were conducted with women and men about livelihood restoration support. There were 140 female participants (81.4%) among 172 people consulted and surveyed on income restoration.

Ensure equal opportunities to male and female beneficiaries in project activities and benefits.

52 Appendix 10

Project outputs Proposed actions/targets Implemented status Note/ issues/challenges and recommendations

2. Target 1: Ensure that at least 30% of unskilled labor force in civil work is women

Achieved: Among 2,467 person-months of unskilled labor hired by the contractors, 841 person-months of unskilled work was provided by female unskilled laborers (34%). The female unskilled workers were hired for cooking, stirring mortar, weeding roadsides, or paving road asphalt.

3. Action 2: Ensure that women and men are provided equal payment for equal work

Achieved: Women were generally confined to lighter tasks such as cleaning, cutting grass and cooking. However, in the instances where males and females engaged in the same tasks, such as paving road asphalt, both were paid equally (250,000 D/day). Salaries were determined depending on the task, not on the sex of the laborer.

4. Action 3: Ensure that contractors provide safe working conditions, work environment free of harassment, and separate sanitation facilities for women

Not achieved: Safe working conditions were provided at basic level with medical kits and protective clothes. However, some toilets in the construction camp sites were out of order or in poor hygiene conditions, and there were no separate facilities for men and women. There is no report on efforts to prevent harassment in the work environment.

5. Target 2: Ensure that 50% of community facilitator of hygiene awareness raising activities are women

Achieved: Viet Tri WU organized three training courses on environmental sanitation. 120 participants participated in the training courses on hygiene awareness raising, including 100 female participants (83.3%). Among 120 people trained, 60 of them became community facilitators on hygiene and sanitation awareness raising (55 of them are female facilitators, accounting for 91.7%)

Output 2: Viet Tri fleet and equipment provided

6. Target 3: Ensure that 50% of positions in community-based waste management groups are held by women

Achieved: In project wards and communes there were 21 community-based waste management groups with 42 members. All were women.

.

Output 3: Hung Yen wastewater treatment plant and sewer network built

7. Action 4: Effective incorporation of needs of men and women in project design (i) Convenient meeting time (ii) Number of meetings/number

of participants (male/female) (iii) Women’s opinion (iv) Men’s opinion

Achieved: Consultation meetings were conducted during November 2016 to April 2017 with the participation of affected households. The issues raised mainly were related to detail design, ADB safeguard policy, and prices applied for compensation and income restoration program: The meeting times were conducted at 8-10 am or 2-4 pm.

Appendix 10 53


(v) Separate consultation with women as needed

These were convenient times because women were not busy with their housework. 81 of 164 participants were female (49.4%) Women raised concerns of the compensation scheme for each kind of land, structure, architectural facility, and trees and crops that would be lost or severely affected; income restoration program; and other assistance policies. Men raised concerns on income restoration program. Separate consultation with women of severely impacted households with 52 women participants. The discussions were on the vocational and agricultural extension trainings. Participants chose chicken raising and rice growing involving new technologies.

Ensure that equal opportunities to male and female beneficiaries in project activities and benefits

Most GAP actions under output 3 were delayed. Hung Yen PMU needs to continue monitor the GAP.


--

9. Action 5: Ensure that women and men are provided equal payment for equal work

--

10. Action 6: Ensure that contractors provide safe working conditions, work environment free of harassment and separate sanitation facilities for women

--

11. Target 5: Ensure that 50% of community facilitators of hygiene awareness raising activities are women

Achieved: Although the wastewater facilities have not been completed there were consultations and awareness raising activities. 25 community facilitators of hygiene awareness raising activities in Bao Khe commune are women. They participated in sanitation trainings held by Hung Yen Women’s Union.

54 Appendix 10


12. Action 7: Develop initiatives to enhance benefits to local women, including livelihood development.

Based on waste characterization study identify constraints to accessing services

--

Ensure that gender sensitive mitigation of resettlement impacts and risks

13. Action 8: Ensure that Women’s Union and women representatives of displaced households are included in resettlement committees.

Achieved: A City Women’s Union representative is a member of the resettlement committee.

14. Target 6: 100% of invitations to resettlement income restoration consultations include names of both spouses heading households

Achieved: Hung Yen City Women’s Union invited 52 seriously affected households in Bao Khe commune to participate in the consultations on the income restoration program, with the names of both spouses indicated in the invitation.

15. Target 7: Ensure public consultation meetings for displaced households have a minimum of 30% women’s attendance

Dropped. No households were displaced.

16. Action 9: Ensure separate supplementary consultation meetings are conducted with women for income restoration and resettlement needs

Achieved: Separate supplementary consultation meeting with women in anticipated affected households was conducted with the participation of 52 women from severely affected households in Bao Khe commune. They expressed interest to be involved in extension trainings (chicken raising, rice cultivation).

17. Action 10: Ensure compensation arising from resettlement impacts is paid jointly to women and men

Achieved. 91 affected households have received compensation. All husbands and wives signed to get payments.

Output 4: Hung Yen infrastructure in old town upgraded

18. Action 11: Effective incorporation of needs of men and women in project design: (i) Convenient meeting time

Achieved: The consultations meetings were conducted with the participation of male and female residents. The main contents of these meetings focused on project

Appendix 10 55


(ii) Number of meetings/number of participants (male/female)

(iii) Women’s opinion (iv) Men’s opinion (v) Separate consultation with

women, as needed

objectives and policies, project technical design, potential and actual impacts or risks. The meeting times were conducted 2-4 pm at the office of ward people’s committee, which was convenient for women. Total 75 participants, including 45 women (60%). Consultation and issues raised mainly are related to ADB Safeguard policy and road safety measures, design and scope of infrastructure /civil work; drainage system environment, and traffic conditions during construction. Both men and women were concerned about the impact of the new infrastructure on temples and pagodas and other historical monuments along the route.

Ensure equal opportunities to male and female beneficiaries in project activities and benefits.


Not achieved: There were 1,551 person-months of unskilled labor used, of which 266 person-months was unskilled female labor (17.6%).

In Hung Yen unskilled women can earn more from business/small trading activities than as works laborers.

20. Action 12: Ensure that women and men are provided equal pay for equal work

Achieved: For those unskilled workers male and female performing same type of work, equal pay for equal work applies (180,000 D/ person day to 200,000 D/person day.)


Achieved: Day camps for lunch and breaks were safe and free of harassment, with proper hygiene in toilets rented from nearby households.


Achieved: There were 135 community facilitators, all were women. They participated in environmental sanitation trainings. There were also 15 garbage collection groups in 3 wards/communes with 34 members, including 25 female members (89.5%)

56 Appendix 10


Output 5: Hung Yen Urban road constructed

23. Action 14: Effective incorporation of needs of men and women in project design: (i) Convenient meeting time (ii) Number of meetings/number of

participants (male/female) (iii) Women’s opinion (iv) Men’s opinion (v) Separate consultation with

women as needed

Achieved: The consultation meetings were conducted with the participation of male and female residents. The contents of these meetings focused on project objectives and policies, project technical design, potential and actual impacts or risks and income restoration program The consultation meeting times were 8-10 am or 2-4 pm. These were convenient for women. Two meetings with 300 participants (including 161 women or 53.7%). Consultation was mainly about resettlement issues. Women’s concerns were about compensation prices for agricultural/allocated land, and remaining land areas after land acquisition. Men’s concerns were on compensation prices on residential land/ponds and livelihood support for elderly people. One separate supplementary consultation meeting with women was conducted by Hung Yen City Women’s Union. There were 86 women consulted on the livelihood restoration program. Many of them expressed interest in in rice growing, pig breeding, and other agricultural extension opportunities.

Ensure that gender sensitive mitigation of resettlement impacts and risks

24. Action 15: Ensure that Women Union and women representatives of displaced households included in resettlement committees

Achieved: City Women Union representative was a member of resettlement committee.

25. Target 10: 100% of invitations to attend resettlement income restoration consultations include names of both spouses heading households

Achieved; Hung Yen City Women Union invited 76 severely affected households in 2 Lien Phuong and An Tao communes to participate in the consultation meetings. Both spouses were named in the invitation letters. Both husbands and wives from these households attended, together with 10 other women (grandmothers and sisters). Total 8of6 women out of 162 participants (53%).

Appendix 10 57


26. Target 11: Ensure public consultation meetings for displaced households have a minimum of 30% attendance of women

Achieved: There were 22 people including 13 women (59%) of 22 displaced households in the public consultation meeting for displaced households. They mentioned as concerns compensation prices, resettlement policy, and agricultural extension courses.


Achieved: Separate supplementary consultation meetings with women from severely affected households were conducted by city Women’s Union with 86 women. The women’s concerns were on agricultural extension training (rice growing and pig breeding)


Partly Achieved: 330 affected households have received compensation, but compensation been paid either husband or wife.

Output 6: Dong Dang: Huu Nghi border gate facilities improved

29. Action 18: Effective incorporation of needs of men and women in project design (i) Convenient meeting time (ii) Number of meetings/number

of participants (male/female) (iii) Women’s opinion (iv) Men’s opinion (v) Separate consultation with

women as needed

Achieved: The consultations meetings were conducted with the participation of male and female residents. The contents of these consultation meetings focused on project objectives and policies, project technical design, potential impacts. Consultation meeting times were 8-10 am or 2-4 pm. These were convenient for women. Total of 48 people attended, including 20 women (41.7%). Content was resettlement issues. Only 11 households were affected, none severely. Both men and women were concerned about the compensation prices and support policies for affected households. No separate consultation meetings because only 11 households were affected.

Ensure gender sensitive mitigation of resettlement and risks.

30. Action 19: Ensure that Women Union and women representatives of displaced households are included in resettlement committees

Achieved: Cao Loc district WU Representative included in resettlement committees. No displaced households identified in this subproject.

31. Target 12: 100% of invitations to attend resettlement income restoration consultations include

Dropped. There were no displaced households identified in this subproject.

58 Appendix 10


names of both spouses heading households. 32. Target 13: Ensure public consultation meetings for displaced households have a minimum of 30% women’s attendance

Dropped. There are displaced households.


Achieved. There are 11 affected households, none severely. All were invited to public consultation meetings held by compensation and site clearance board in cooperation with the CPCs.


Partly achieved: Total 11 AHs have received compensation. Compensations have been paid to either men or women household heads.

35. Action 22: Ensure measures to mitigate against HIV/AIDS/ sexually-transmitted infection and human trafficking risk

Partly achieved: Cao Loc WU organized 10 training workshops on gender equality, HIV/AIDS and STD prevention and anti-human trafficking, with 613 participants, including 499 women (81.4%) in Dong Dang town and Bao Lam commune. The project collaborated with Cao Loc WU to hold 8 communication campaigns/ meetings on gender equality, HIV/AIDS prevention, anti-drug use and human trafficking prevention, gender equality, road safety in Dong Dang town and Bao Lam commune with 710 participants, including 620 female participants (87.3%).

Lack information on women in high-risk age group and women who participate in activities risky services (restaurants, bars, karaoke) to ensure 100% of them received information on preventing HIV transmission.

36. Social Development and Gender Specialists recruited

Achieved.

Output 7: Dong Dang drainage and flood protection improved

37. Action 23: Effective incorporation of needs of men and women in project design (i) Convenient meeting time (ii) Number of meetings/number of

participants (male/female) (iii) Women’s opinion (iv) Men’s opinion (v) Separate consultation with

women as needed

Achieved: The consultations meetings were conducted with male and female residents on project objectives and policies, project technical design, potential impacts.

The meeting times were 8-10 am or 2-4 pm on

weekdays, convenient for women to attend. Consultation meetings were conducted with 122 people

including 58 women (47.5%). Consultations were mainly on resettlement policy/ compensation prices

Women voiced concerns on the resettled land quality and

Appendix 10 59


the income restoration program if their business was to be impacted.

Men were concerned about the compensation policy. No separate consultation with women, mixed meetings. More women participated in the consultations and their views were heard.

Ensure equal opportunities to male and female beneficiaries in project activities and benefits

38. Target 14: Ensure that at least 30% of unskilled labor in civil work is women

Not achieved: The contractors hired 211 person-months of unskilled women’s labor (9.6%) out of 2,195 person-months of unskilled works labor.

Women in Dong Dang town have better job opportunities than taking civil work jobs, for example, carrying goods across the border.

39. Action 24: Ensure that women and men are provided equal pay for equal work

Achieved: Both men and women have same tasks (brick layer assistants) and salary, average 220,000 D per day; and for cleaning the works about 150,000 D per day.


Not achieved: Sanitary conditions were sub-standard with outdoor bathroom, no separate and unhygienic latrine for female and male workers, medical kits were not adequately provided in camps.


Achieved: There were 125 community facilitators for hygiene and sanitation awareness raising. All were women. 7 garbage collection groups with 14 female members formed in Dong Dang town, all established before the project.

Ensure gender sensitive mitigation of resettlement and risks.

42. Action 26: Ensure that Women Union and women representatives of displaced households included in resettlement committees

Achieved: Cao Loc district WU representative was in resettlement committees. Representative of Commune WU participated in inventory activities. No displaced households identified in this subproject.

60 Appendix 10


43. Target 16: 100% of invitations to attend resettlement income restoration consultations to include names of both spouses heading households

Dropped: No severely affected households.

44. Target 17: Ensure public consultation meetings for displaced households have a minimum of 30% attendance of women

Achieved: There were 5 women (50%) among 10 people from 5 affected households who attended the meeting and received land plots in the resettlement sites as compensation for portions of their land that were affected by the subproject.


Dropped because the number of severely affected households was low (10)


Achieved: All 62 affected households received compensation to both heads of households (men and women).

Output 8: Efficiency and management capacity of local authorities strengthened

Institutional capacity for gender mainstreaming in project implementation includes

47. Action 29: Develop and provide training on gender and development to government staff associated with delivering project outcomes, including capacity to implement gender action plan

Achieved: The PMUs appointed gender focal points (5 people in 5 PMUs). All 3 PMUs had completed all training activities on gender sensitization and gender mainstreaming for PMUs and stakeholders, with 218 participants. 145 were female participants (66.5%).

48. Target 18: ensure 100% participation of male and female staff in the gender training

Partially achieved: 88% of PMU staff (59/67) were trained on gender awareness raising and on gender action plan orientation. Total 59 staff, including 17 (28.8%) women, among them, 22 from Hung Yen (6 females), 9 from Viet Tri (2 females) and 28 from Dong Dang (9 females).

Target of 100% is not realistic. Having reached 88% is a substantial achievement.

49. Action 30: As vacancies arise, ensure that female staff are recruited into managerial positions in PMUs

Achieved: In March 2015 Lang Son water company PMU recruited a female staff.

50. Action 31: Sex-disaggregated data maintained on attendance in

Achieved: Sex-disaggregated data maintained on attendance of gender training, HIV/AIDs, community-

Appendix 10 61


gender training, linked to staff performance evaluation review

based monitoring training, local labor/female local labor recruitments.

51. Target 19: At least 30% of staff will be female, with sex-disaggregated data maintained on numbers of staff

Partially achieved: Percentage of female staff of PMUs of 3 cities included 17 females out of 67 staff (25.4%)

The PMUs were set up prior to the projects by respective city PPCs.

52. Target 20: Ensure 100% participation of female staff in all trainings provided by the project

Achieved: 17 female staff (100%) have attended gender trainings in three cities in 2014 and 2015.

53. Action 32: Women’s Union in three project areas are provided capacity-building training and material support to ensure women’s needs are addressed in project implementation

Achieved: Women’s Union in three project areas were provided with budget for capacity-building and materials support, totaling $100,000. The GAP implementation results by WUs in 3 cities/town are as follows: - Participants in the trainings courses on traffic safety,

gender mainstreaming, environmental sanitation, community supervision, HIV/AIDS prevention

City/town Total Female % female

Viet Tri 420 285 67.9 Hung Yen 662 434 65.6 Dong Dang/ Cao Loc

613 498 80.7

Total 1,695 1,217 71.7 Participants in campaigns on traffic safety, human trafficking, environmental sanitation, HIV/AIDS prevention

City/town Total Female % female

Viet Tri 2,160 1,914 88 Hung Yen 600 520 87 Dong Dang/ Cao Loc

710 620 87.3

Total 3,470 3,054 88

62 Appendix 10


Leaflets on road safety, human trafficking, HIV/AIDS and environmental sanitation

City/town Leaflets Viet Tri 5,900 Hung Yen 7,500 Dong Dang/ Cao Loc 8,000 Total 21,400

Participants in the trainings on agricultural extension

City/town Total Female % female Viet Tri 82 79 96 Hung Yen 198 109 55 Total 280 188 67.1

54. Target 21: Ensure 40%-50% of positions in community-based monitoring committees are held by women

Partially achieved: 32% of community-based monitoring committee members were women (41 female out of 128 members).

Community supervisions boards were established prior to subproject implementation.

Gender-sensitive monitoring and evaluation measures

55. Action 33: Project to include sex disaggregated baseline for resettlement (census/detailed measurement survey) and all livelihood restoration/development initiatives, with women’s needs specifically addressed in resettlement plans updating and implementation

Achieved: Sex disaggregated baseline for resettlement and surveys on the needs of women in vocational classes / extension training were completed.

56. Action 34: Ensure gender sensitive indicators are identified and incorporated in the project performance monitoring system

Achieved: Gender sensitive indicators in GAP were identified and proposed with templates for collection and reporting as part of the PPMS.

57. Action 35: Project to include sex-disaggregated indicators for M&E, including stakeholders’ participation in project activities

Achieved: Sex-disaggregated indicators for M&E including stakeholder’s participations were included.

58. Action 36: Ensure that relevant sex-disaggregated data collected is

Achieved: Sex-disaggregated data were collected and reported in project progress reports.

Appendix 10 63


properly analyzed and included in project progress reports 59. Action 37: Social development and gender specialists recruited

Achieved: A national gender specialist and a community development specialist was recruited with 10-month intermittent inputs. The second community development specialist was recruited with 6-month intermittent inputs. Each PMU had a safeguard staff and she/he also was PMU gender focal point.

GAP = gender action plan; M&E = monitoring and evaluation; PMU = project management unit; PPC = provincial people’s committee; WU = Women’s Union;