Project Number: 45198-004 Loan: {LXXXX} 10 September 2013

Socialist Republic of Viet Nam: Secondary Cities Development Project

Project Administration Manual

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Contents

ABBREVIATIONS III

I. PROJECT DESCRIPTION 1

II. IMPLEMENTATION PLANS 5

A. Project Readiness Activities 5 B. Overall Project Implementation Plan 6

III. PROJECT MANAGEMENT ARRANGEMENTS 7

A. Project Implementation Organizations – Roles and Responsibilities 9 B. Key Persons Involved in Implementation 11 C. Project Organization Structure 15

IV. COSTS AND FINANCING 16

A. Detailed Cost Estimates by Expenditure Category 18 B. Allocation and Withdrawal of Loan Proceeds 19 C. Detailed Cost Estimates by Financier 20 D. Detailed Cost Estimates by Outputs 22 E. Detailed Cost Estimates by Year 23 F. Contract and Disbursement S-curve 24 24 G. Fund Flow Diagram 25

V. FINANCIAL MANAGEMENT 26

A. Financial Management Assessment 26 B. Disbursement 26 C. Accounting 27 D. Auditing and Public Disclosure 28

VI. PROCUREMENT AND CONSULTING SERVICES 30

A. Advance Contracting 30 B. Procurement of Goods, Works and Consulting Services 30 C. Procurement Plan 31 D. Consultant’s Terms of Reference 38

VII. SAFEGUARDS 48

VIII. GENDER AND SOCIAL DIMENSIONS 53

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 57

A. Project Design and Monitoring Framework 57 B. Monitoring 60 C. Evaluation 61 D. Reporting 62 E. Stakeholder Communication Strategy 62

X. ANTICORRUPTION POLICY 72

XI. ACCOUNTABILITY MECHANISM 73

XII. RECORD OF PAM CHANGES 74

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Project Administration Manual Purpose and Process

1. The project administration manual (PAM) describes the essential administrative and management

requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.

2. The provincial people’s committees of Quang Nam, Dak Lak, and Ha Tinh; and the Quang Nam PCI.QNa, Buon Ma Thuot city people’s committee, and Ha Tinh CPC city people’s committee are wholly responsible for the implementation of ADB financed projects, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible to support implementation including compliance by provincial people’s committees of Quang Nam, Dak Lak, and Ha Tinh; and the Quang Nam PCI.QNa, Buon Ma Thuot city people’s committee, and Ha Tinh CPC city people’s committee of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

3. At Loan Negotiations the borrower and ADB shall agree to the PAM and ensure consistency with the Loan Agreement. Such agreement shall be reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the PAM and the Loan Agreement, the provisions of the Loan Agreement shall prevail.

4. After ADB Board approval of the project's report and recommendations of the President (RRP) changes

in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM.

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Abbreviations

ADB = Asian Development Bank ADF = Asian Development Fund CPC = city people’s committee CV = curriculum vitae DAKURENCO = Dak Lak urban environmental company DMS = detailed measurement survey DOC = Department of Construction DOF = Department of Finance DONRE = Department of Natural Resources and Environment DPI = Department of Investment DRRM = disaster risk reduction and management EA = executing agency EMP = environmental management plan GAP = gender action plan IA = implementing agency ICB = international competitive bidding IEC = information, education and communication IEE = initial environmental examination MOC = Ministry of Construction NCB = national competitive bidding O&M = operation and maintenance PAM = project administration manual PCI.QNa = Projects Construction Investment Management Authority PIU PMU

= =

project implementation unit project management unit

PMIS = project management and implemenation support PPC = provincial people’s committee PSC = project steering committee QBS = quality based selection QCBS = quality-and-cost based selection RRP = report and recommendation of the President to the Board SBD = standard bidding documents SCS = stakeholder communication strategy SOE = statement of expenditure SPS = Safeguard Policy Statement SPRSS = summary poverty reduction and social strategy SWM = solid waste management WU = women’s union

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I. PROJECT DESCRIPTION 1. The Urban Context. A fast growing urban sector is driving Viet Nam’s economic growth. The country’s sustained economic expansion in the last decades has been accompanied by a significant decline in the share of agriculture and a steady increase in the share of urban economic activities. The industry and service sectors comprising the urban economy now account for nearly 80% of total gross domestic product. The urban population has grown at the rate of 3.4% annually for the period 1999‒2009, reaching some 31.7% of the total population in 2011, with a forecast of 34.5% by 2015. However, the growth of the urban population is concentrated in the primary conurbations of Ho Chi Minh City, Ha Noi, and increasingly Da Nang, where there is an expanding professional middle class. These cities are becoming highly congested and exhibiting signs of growing social and environmental problems including perennial flooding and natural disasters caused by climate change. There has been a significant reduction in urban poverty, but there is also evidence to suggest that income inequality is increasing. This indicates that the poverty gap between the richest and poorest is worsening making it difficult for urban residents, particularly the poor and other vulnerable groups, to access basic services and socioeconomic as well as environmental protection through climate change resilient infrastructure. 2. Secondary Cities. The secondary cities are being developed to address economic disparities that constrain urban development and social stability and more importantly, to deflect rural migration away from the larger cities. The provincial and urban socioeconomic plans and urban master plans of these cities have laid the policy foundation to achieve these objectives. However, trends show that growth of new business activities in many secondary cities is slowing down apart from some notable exceptions, while investments in new housing construction are also lagging. If the trends persist, the social and economic disparities between the secondary cities and the larger cities will continue to widen. An unwanted consequence of this is the pull and push factor that drives rural migrants into the larger cities. This defeats national policies and directives that encourage broad-based growth and balanced regional development throughout the country. 3. Urban Development Issues. Growth in the secondary cities is hampered by weak and inadequate infrastructure which constrains: (i) economic growth and the potential for new urban development and employment opportunities and (ii) social and environmental protection in key sectors, including flood protection and disaster management. In this context, there is an urgent need for greater investment in climate resilience planning, and better and more sustainable urban infrastructure. Investment in secondary cities is often typified by deficient strategic and local transport infrastructure, obsolete water supply systems, high water losses, poor drainage, poor flood protection, and unsustainable liquid and solid waste collection systems. Collectively, these act as a deterrent to domestic and foreign investments which are vital to stimulating socioeconomic growth and development. With Viet Nam’s long coastline of more than 3,000 kilometers, at least 20 secondary cities are also at risk from climate change. These coastal and near-coastal low-lying cities are particularly vulnerable to sea level rise related hazards, including: (i) total submersion, (ii) flooding, (iii) soil erosion, and (iv) salinization of ground and surface water. Affected secondary cities can prepare for climate change induced natural disasters through more systematic investments in properly designed seawalls and dykes, water supply improvements, and drainage and sanitation. 4. The Project Cities. The selected project cities of Tam Ky (Quang Nam Province), Buon Ma Thuot (Dak Lak Province), and Ha Tinh (Ha Tinh Province) have revised, or are revising their urban plans, and preparing for expansion to medium-sized cities. The economy of these

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cities indicates significant medium and long-term potential for newly emerging industries and services. The Project aims to address urban issues, climate resilience and promote balanced regional development. At the same time, in Tam Ky and Ha Tinh, the project will prioritize the completion and upgrading of flood protection and drainage works commenced but not completed under the previously funded ADB Central Region Urban Environmental Improvement Project and ensure that the needs for climate resilience are met. Targeted infrastructure investments, in line with government policy, have been selected to assist this process. 5. Tam Ky belongs to the chain of coastal cities linking northern, central, and southern Viet Nam. It sits alongside both the strategic NH1 road corridor and the Ha Noi-Ho Chi Minh rail corridor. It has its own domestic air terminal at Chu Lai. Improving strategic infrastructure planning, through the National Coastal Road under construction and the planned North-South Expressway will significantly shorten travel time to Da Nang and other regional and provincial cities and improve the attraction of the Chu Lai Special Economic Zone for investment. It will also potentially attract investment in the tourism sector and promote connectivity to the Da Nang/Hoi An coastal tourism corridor. As such, Tam Ky as a provincial capital has good potential for economic growth and urban development and is poised to reach its target of achieve Class II status in the medium term. 6. However, Tam Ky suffers from typhoons and heavy rains, which often cause severe floods, damaging homes, business and infrastructure facilities and the environment. A prerequisite therefore to the city’s sustained development will be to ensure its competitiveness as a regional economic growth center through climate resilient basic services and infrastructure. The city will benefit from addressing climate change issues by providing sustainable flood protection through dyke upgrading and improved disaster management by construction and upgrading of strategic urban road for evacuation.

7. Buon Ma Thuot is the capital of Dak Lak Province in the Central Highlands Region of Viet Nam. It is already a Class I city and has good potential for sustainable economic growth and development emphasizing its role as a regional administrative and education center and the commercial hub for the coffee sector and other business agriculture. It is also the transport and economic hub in the region, with regional links to Ho Chi Minh City, Da Nang, and into Lao PDR/Cambodia. To maximize economic growth and social development will require continued investments in large scale strategic infrastructure, including better regional road links and strategic by-pass routes for the city. It will also require priority investment in urban road infrastructure, which will directly benefit the economic development and expansion of the city and relieve increasing levels of traffic congestion. At the same time, economic growth and social development will respond well to the Buon Ma Thuot’s “green city” credentials, through more sustainable environmental practice. Better solid waste treatment using 3R principles and sustainable landfill operations will reflect this theme. 8. Ha Tinh is also one of a chain of coastal corridor cities linking north-central-south Viet Nam. The city is strategically important in supporting links to the Viet Nam-Lao PDR-Cambodia triangle. The province includes a number of strategic growth poles, including the Vung Anh Economic Zone, the Son Duong Deep Water Port and the Cao Treo Economic Zone. To this extent Ha Tinh, as the administrative capital and agricultural business hub of the province has the potential to move from its class III city status to class II at least in the medium term. In a similar way to Tam Ky the city suffers from typhoons and heavy rains, which often cause severe floods—damaging homes, business, infrastructure facilities, and the general environment of the city. Therefore, base conditions for better economic growth will focus on ensuring Ha Tinh becomes a more attractive place to invest in comparison with its competitors; and developing

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socioeconomic infrastructure in accordance with the master plan. This will benefit from investments: (i) to address climate change issues by providing more sustainable flood protection and drainage facilities by upgrading and rehabilitating regulating basins along with environment improvements, landscaping and recreation facilities; and (ii) by upgrading road links for access to drainage channels. 9. Support Related Policies and Strategies. The project is in conformity with the government’s policy context, including: (i) the overarching policies contained in the Socio-Economic Development Strategy 2011‒2020 and the Socio-Economic Development Plan 2011‒2015, and (ii) the sector policies contained in the relevant orientation plans and other recent policy advice and guidelines on climate change. In particular the Orientation Master Plan for Urban Development 2020, confirms government intention to develop model cities and divert rural migration away from the large cities through the development of the secondary cities and strengthening urban-rural linkages. The project enhances the policies and sector priorities contained in the ADB Country Partnership Strategy (2012‒2015),1 which promotes comprehensive socioeconomic development in urban areas, fostering balanced growth and social stability. Other ADB priorities in terms of climate change considerations, social inclusion, and stakeholder participation are identified by ADB Viet Nam urban sector assessment, strategy and road map.2 10. Lessons Learned. Based on the experience gained from completed ADB-financed urban sector development projects,3 the relevant lessons adopted for the Project include: (i) alignment of the project preparation and implementation schedule with the government’s approval procedures, (ii) selecting qualified project management consultants familiar with local rules and regulations, (iii) minimizing the number of procurement packages for effective contract management and ensuring competitiveness among qualified contractors, (iv) allocating sufficient amount of funds to contingencies due to high price escalation and possible design changes, (v) selecting a lead coordinating implementing agency with adequate capacity in the PMU, and (vi) advance action for land acquisition and resettlement to facilitate project implementation to optimize time taken for consultation and agreement with affected households. The project design responds to these lessons with a schedule that has sufficient preparation time, a limited number of procurement packages, and adequate project management support and commitment from the three cities. 11. Impact and Outcome. The expected impact of the project is improved urban environment and climate resilient infrastructure in Buon Ma Thuot in the central highland region and in the coastal cities of Ha Tinh and Tam Ky. The expected outcome of the project is increased coverage of resilient urban infrastructure and climate change adaptation in the participating cities.

12. Outputs. The project will deliver the following outputs in the three selected secondary cities.

1 CPS emphasizes environmental improvement in selected secondary cities, particularly those along transport and

economic corridors, as well as coastal cities that need to prepare for possible early impacts of climate change. 2 ADB. Forthcoming. Viet Nam: Urban Sector Assessment, Strategy, and Road Map. Manila.

3 ADB 2011. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Socialist

Republic of Viet Nam for the Comprehensive Socioeconomic Urban Development Project in Viet Tri, Hung Yen, and Dong Dang Project. Manila; ADB. 2009. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Socialist Republic of Viet Nam for the Than Hoa City Comprehensive Socioeconomic Development Project. Manila; and ADB. 2013. Completion Report: Central Region Urban Environmental Improvement Project in Viet Nam. Manila.

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Output 1: New and improved urban infrastructure and climate change adaptation, including

Strengthened flood management and drainage in Tam Ky and Ha Tinh. The project will provide social and economic protection through better flood protection for residents and businesses in the existing built-up area of Tam Ky and Ha Tinh. In Tam Ky this will include completion of previously uncompleted flood dykes and improving existing dykes to meet government’s climate resilience standards. In Ha Tinh this includes the completion and extension of previously uncompleted drainage works, construction of a new storm water regulating basin and new recreation provision for the new regulating basin and for Bon Son lake an existing regulating basin.

Improved solid waste management in Buon Ma Thuot. The project will result in better levels of sustainability and greater cost-effectiveness in solid waste management, through a new engineered landfill and recycling facility, restoration of the existing dumpsite and an information, education and communication (IEC) campaign in pilot project areas within the city.

Strategic roads and related urban environment improvements in all three cities. The project will provide priority urban road infrastructure in all three cities, opening up opportunities for new development, providing strategic internal road links that promote connectivity, links to the external strategic highway network and neighboring countries and specifically helping to relieve anticipated traffic congestion in Buon Ma Thuot as the city continues to grow.

Output 2: Increased community awareness for sustainable environmental management through IEC. The project will focus on increased community awareness for sustainable environment management. Gender-sensitive IEC materials on solid waste management and disaster risk reduction and management will be developed. The project will raise community awareness and train residents of Buon Ma Thout especially in the area of waste segregation, the 3R4 approach of solid waste management (SWM) and household composting through a training program. The IEC on waste segregation will be rolled out to the entire city of Buon Ma Thout based on pilot experiences.

Output 3: Improved competencies in integrated urban development, environmental planning, climate change adaptation, and project management. Knowledge and skills of professional staff in the implementation units will be strengthened in the competency areas integrated urban development, environment planning and climate change adaptation. Project management support and capacity development program will be provided to the executing agencies and implementing agencies. Consulting services will be engaged for capacity building in these areas. A joint package for international consulting services will be provided for project support, capacity building, and fiduciary activities including: technical, financial, SWM operations, procurement, environmental and social support and training as described in output 3. This will also include national consulting services for contract management and construction supervision for each city. Financial audit and monitoring of social and environmental safeguards will be provided under separate services.

4 The 3R approach of solid waste management focuses on reduction, reuse, and recycling of resources.

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II. IMPLEMENTATION PLANS

A. Project Readiness Activities

2013 2014

Indicative Activities

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Who responsible

Advance contracting actions

Consultant Selection

PMUs

PMUs

a. -Detailed Design

-Project Imp. Support

PMUs PMUs

Finalize project implementation arrangements

ADB, PPCs

Land Acquisition Activities

ADB Board approval

∆

PMUs

ADB

Loan signing ∆

ADB, SBV

Government legal opinion provided

SBV

Government budget inclusion

SBV

Loan effectiveness ∆

ADB, PPC

ADB = Asian Development Bank, PMUs = Project Management Units, PPCs = Provincial People’s Committee, SBV = State Bank of Viet Nam. Source: Asian Development Bank.

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B. Overall Project Implementation Plan

Key Milestones

Project Component 2013 2014 2015 2016 2017 2018 2019

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3

Project Start-Up 1. Recruit Design Consultants A. Flood Protection & Drainage and

Urban Roads

(Tam Ky, Buon Ma Thuot & Ha Tinh)

1. Detailed engineering design

2. Bidding and award

3. Construction

4. Land acquisition/resettlement

B. Urban Roads (All 3 Cities)

1. Detailed engineering design

2. Bidding and award

3. Construction

4. Land acquisition/resettlement

C. Solid Waste Management (Buon Ma Thuot City)

1. Detailed engineering design

2. Bidding and award

3. Landfill development Hoa Phu

4. Procure landfill equipment

5. Closure of Cu Eabur

6. Land acquisition/resettlement D. Project Management, Implementation

and Institutional Strengthening (All 3 Cities)

1. Detailed engineering design

2. Auditor appointment

3. Bidding and award

4. Construction

5. Land acquisition/resettlement

6. EMP updates

Note: Defects Liability Periods for Civil Works Contracts Intermittent Inputs of Various Consultancies

Loan Effective Midterm Review Project Close

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III. PROJECT MANAGEMENT ARRANGEMENTS 13. The provincial people’s committees (PPCs) of Dak Lak, Ha Tinh, and Quang Nam are the executing agencies (EAs). The city people’s committees (CPCs) of Buon Ma Thuot and Ha Tinh, and the Projects Construction Investment Management Authority (PCI.QNa) of Tam Ky are the implementing agencies (IAs) or project owners. 14. Project management. The implementation arrangements follow the government’s decentralization policy for ODA- funded projects and are based on previous ADB projects.5 The PMUs for Ha Tinh and Tam Ky (PCI.QNa) have experience in implementing previous ADB projects. The provincial people’s committee (PPC) of Quang Nam, Dak Lak, and Ha Tinh provinces will be the executing agencies. The Quang Nam PPC, as lead executing agency, will coordinate and liaise with national line agencies and ADB during project implementation. The lead executing agency will consult the Dak Lak and Ha Tinh PPCs for all decisions related to procurement of international consultants for project management and implementation support. The city people’s committees (CPCs) of Buon Ma Thuot, Ha Tinh, and Tam Ky, which is the Projects Construction Investment Management Authority Quang Nam (PCI.QNa), are the implementing agencies or project owners. The PMUs of Tam Ky (PCI.QNa), Ha Tinh, Buon Ma Thuot, and the Dak Lak Urban Environmental Company (DAKURENCO) are the project implementation units. Each PMU will include multidisciplinary skills and implement its subprojects.6 The PCI.QNa is nominated as the coordinating PMU in consensus with the other PMU directors, executing agencies, and the Ministry of Planning and Investment. It will liaise with the other PMUs to harmonize project implementation. The PMUs for Ha Tinh and Tam Ky (PCI.QNa) have experience implementing previous ADB projects (footnote 16). Each PPC will provide oversight and decisions on the appointment of national consultants for its PMU. This arrangement was effectively demonstrated during the project preparation phase with PCI.QNa as lead. 15. Project steering committees (PSCs) are already operating in each city and are headed by the PPC Vice Chairman, and include representatives of provincial and city government agencies. The PSCs will continue to coordinate the implementation of the project in each city and provide policy guidance. The PSCs will be chaired by the PPC Vice Chairman and will include representatives from the following organizations: (i) Department of Construction, (ii) Department of Planning and Investment (DPI), (iii) Department of Finance (DOF), (iv) Department of Natural Resources and Environment (DONRE), (v) Provincial and/or City Women’s Union (WU), (vi) Chairman or Vice Chairman of the concerned project City, and (vii) other agencies or entities that may be recommended by the PPC, for instance in Buon Ma Thuot, Dak Lak urban environmental company (DAKURENCO). The PSCs will continue to assist the PPCs by: (i) monitoring project implementation, (ii) making decisions related to project implementation within the power of the local authorities, (iii) approving project documents related to, for example, procurement plans, and bidding and contract documents, and (iv) coordinating the relevant agencies of the provinces and the project management unit (PMU) in the project implementation process. PMUs have been established within the existing institutional structures in each city and will manage the implementation of the project. There will be one PMU for each of the cities. To meet this requirement, the Buon Ma Thuot City PMU will take up

5 Government of Viet Nam. 2006. Decree No. 131/2006/ND-CP on Project Management and Utilization of ODA.

Ha Noi (effective 6 June 2013), this decree was replaced by Government of Viet Nam. 2013. Decree No. 38/2013/ND-CP on Management and Utilization of ODA and Concessional Loans. Ha Noi.

6 Multidisciplinary skills include technical due diligence, safeguards, procurement, finance, economics, gender, and

social development.

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the lead role in the project and will liaise and coordinate closely on subproject implementation with DAKURENCO on the solid waste management and road subprojects it will implement.

16. The functions of the PMUs will include: (i) monitoring and coordinating all project activities in the participating cities; (ii) supervising the consultants responsible for design and preparation of tender documents, construction supervision, and other activities; (iii) preparing bid plans, work plans, and annual budget plans; (iv) managing the prequalification of contractors, bid evaluations, bid awarding and contract signing; (v) undertaking site compensation and clearance; (vi) supervising work plans and ensuring quality control of work carried out by contractors and consultants; (vii) supervising and monitoring project-related resettlement and environmental activities; and (viii) preparing periodic project progress and annual reports for submission to the PPCs.

17. The structure and resources of the PMUs will reflect the needs of the subprojects in each city and will be built around the existing professional and administrative and technical support staff. Their staff will be supplemented wherever required. To this extent, the PMUs will include and/or be able to draw on the following disciplines: (i) municipal engineers – drainage and flood protection; (ii) civil engineers – roads/highways and structures; (iii) solid waste management specialist (Buon Ma Thuot); (iv) environment professional(s); (v) resettlement specialist; (vi) social development/gender professional(s); (vii) urban planner/landscape architect; and (viii) procurement/ contracts/construction professional(s). There will also be a need for a range of other administrative and technical support staff, including: financial management, accounting, administration, and translation and bid evaluation staff. Quality control will be critical, such that the required key professionals nominated by each of the PMUs and curriculum vitae (CV) will be submitted to ADB for approval prior to their appointment to the PMUs. When a CV is not acceptable to ADB, then the PMU will be requested to submit additional CVs for evaluation until a qualified candidate deemed suitable is agreed between ADB and the PMU concerned. 18. Quang Nam PPC has been selected to act as lead/coordinator between the project cities and the concerned central government agencies for project implementation. For an efficient and cost effective coordination among the PMUs, a small project coordination unit will be established to be responsible for the following: (i) monitoring overall project implementation progress and (ii) making decisions on issues such as the scope of investment, project policies, and procedures. The project coordination unit will be staffed by dedicated members of the lead PMU and if necessary, additional staff will be appointed. To distribute the coordination workload and encourage good working relationships, the PMUs may choose to share some identified common responsibilities.

19. Where it is necessary for the PPCs/PMUs from all three cities to discuss issues of common interest and to resolve problems, informal joint meetings will held through a project coordination committee (see section C for the project organization structure).

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20. Further details are discussed below.

A. Project Implementation Organizations – Roles and Responsibilities

Project implementation Organization Management Roles and Responsibilities

Quang Nam PPC

Dak Lak PPC

Ha Tinh PPC

Executing Agencies – All Oversee project activities in each city Sign the project agreement Approve rolling plans/program for implementation Ensure compliance with loan covenants Submit disbursement projections and ensure counterpart fund

allocation Approve procurement plans Ensure that project implementation complies with ADBs safeguard

policy and provisions in the EMPs and RPs Will follow ADB guidelines and procedures for recruitment including

auditors. Quang Nam PPC

Coordination and liaison with line agencies and other agencies as appropriate on common policy, regulatory context, implementation procedures and financial issues

Quang Nam PMU

Buon Ma Thuot PMU

Ha Tinh PMU

Project Management Units – All Undertake day to day management of the project activities Prepare detailed designs and procurement documents, bid

evaluation and contract awards and pass on to the Project Implementing Agencies on CPC level for final approval.

Prepare the consultants for project management, capacity building and awareness building

Update the resettlement plans and submit to ADB for clearance prior to implementation

Update EMPs and validate costs in the project cost table Monitor implementation of resettlement plans and submit

monitoring reports to the EAs and ADB Award civil works and equipment contracts Supervise civil works contractors Ensure environmental protection and mitigation measures (in the

EMPs) are incorporated in detailed designs and contract awards Ensure implementation of the EMPs and submit regular monitoring

reports through the IAs to the EAs Submit regular (quarterly and annual) project reports to ADB Submit resettlement plans to the ADB for agreement prior to

implementation Implement GAP, Poverty Reduction and Social Strategy,

Stakeholder Participation Plan and WU capacity building program.

Coordinating PMU Coordinate and liaise with line agencies and other agencies as

appropriate on common policy, regulatory context, implementation procedures and financial issues

Prepare and consolidate project financial statements and arrange for the audit with support of the PMIS consultants.

Day to day coordination and liaison between the three PMUs and

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Project implementation Organization Management Roles and Responsibilities

communications to the Project Steering Committees7 and other relevant agencies.

Quang Nam PCI.QNa

Buon Ma Thuot CPC

Ha Tinh CPC

Project Implementing Agencies Coordinate and monitor projects activities of the PMUs Approve detailed designs and procurement documents, bid

evaluation, and contract awards. Approve the consultants for project management, capacity

development and awareness building Obtain necessary environmental approvals from the respective

departments of natural resources and environment prior to awarding civil works contracts

Oversee and support the PMUs on the management and reporting for EMPs

Undertake quality control inspections of the project facilities and completion

Manage project facilities handover O/M related agencies

ADB Funding Agency Review and approve procurement and disbursement requests. Conduct six monthly reviews to assess: (i) overall project

implementation; (ii) land acquisition and resettlement; (iii) environmental management; (iv) project expenditure, disbursements and counterpart funding, (v) procurement and contract awards; (vi) compliance with loan covenants; (vii) achievement of project outputs and outcomes

Update the project performance review reports in conjunction with the EAs

Ensure compliance of financial audits and recommendations Post project documents requiring public disclosure on ADB web-site

(i.e., ADB safeguards compliance)

Conduct mid-term project review to: (i) assess need to restructure for reformulate the project; (ii) update the project DMF; (iii) assess need to the project completion deadline.

7 Project steering committees (PSCs) are already operating in each city and are headed by the PPC Vice Chairman,

and include representatives of provincial and city government agencies.

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B. Key Persons Involved in Implementation

Executing Agency/Project Organization

Government of Viet Nam

PPC Dak Lak Province

Dak Lak PPC Mr. Y Dham Enuol Vice Chairman 08 Mai Hac De, Buon Ma Thuot city, Dak Lak province Tel: 0986014777 Email: ubdaklak@gmail.com Buon Ma Thuot CPC Mr. Tran Vinh Canh Chairman 01 Ly Nam De, Buon Ma Thuot city, Dak Lak provinceTel: 0903503019 Email: canhsxd@gmail.com Dakurenco Ltd, Co. Mr. Truong Cong Thai Director 01 Dao Duy Tu, Buon Ma Thuot city, Dak Lak province Tel: 0903587552 Email: vipsmubmt@dng.vnn.vn

PPC Ha Tinh Province

Executing Agency: Ha Tinh PPC Mr. Tran Minh Ky, Vice Chairman Address: No. 19, Nguyen Tat Thanh Street, Ha Tinh City Phone: (84.39). 3855 581; Fax: (84.39). 3856 141 PMU: Mr. Nguyen Cong Nguyen, Director Address: No 9, Nguyen Cong Tru, Ha Tinh City Phone: (84.39). 3881 989; Fax: (84.39).3891.588 Email: Hatinhcrueip@gmail.com

PPC Quang Nam Province

Executing Agency: Quang Nam PPC Mr. Dinh Van Thu, Vice Chairman Address: 70 Hung Vuong, Tam Ky Town, Quang Nam Province PMU: Mr. Hoang Xuan Viet, Director Address: 70 Hung Vuong, Tam Ky Town, Quang Nam Province Phone: 0510 3851 457, Cell: 0905 95 7777, Fax: 0510 3851 457 Email: cttamky@yahoo.com

ADB

Southeast Asia Urban Development and Water Division

Staff Name Amy Leung Position Director Telephone No (632) 632 5613 Email address aleung@adb.org

Mission Leader Staff Name Sonia Chand Sandhu Position Principal Environment Specialist Telephone No (632) 632 5194 Email address ssandhu@adb.org

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Key Position Roles and Responsibilities

Director PMU

Coordination and liaison with central government agencies, PPC, wards and communes and other stakeholders;

Management of the PMU staff and the Consultants.

Oversight of contract management, construction, works, monitoring and operations and maintenance;

Oversight and monitoring of safeguard compliance and grievance redress mechanism;

Ensuring design and implementation of the sub-projects in a timely manner and to a high quality;

Advising on relevant government policies and guidelines relevant to the design and implementation of the subprojects;

Providing overall support to the consultant selection process; and

Establishing the consultant services office and facilities.

Municipal Engineer

Coordination and liaison with consultant team counterparts;

Coordination with engineering consultants on all aspects of construction, works, monitoring and operations and maintenance;

Ensuring design and implementation of the subprojects in a timely manner and to a high quality;

Providing technical inputs to the design and implementation of the drainage and flood protection subcomponents in Tam Ky and Ha Tinh;

Advising on relevant government policies and guidelines relevant to the design and implementation of the drainage and flood protection subcomponents;

Coordination and liaison with key stakeholders, including government agencies, private sector companies, and project affected communities; and

Attending training seminars and workshops as part of the capacity building program.

Civil Engineer

Coordination and liaison with counterparts in the consultants’ team;

Coordination with the other consultants on all aspects of construction, works, monitoring and operations and maintenance;

Ensuring design and implementation of the subprojects in a timely manner and to a high quality;

Providing oversight and monitoring safeguard compliance and grievance redress mechanism;

Providing technical inputs to the design and implementation of the strategic roads subcomponents in all three cities;

Advising on relevant government policies and guidelines relevant to the design and implementation of the strategic roads subcomponents;

Coordination and liaison with key stakeholders, including government agencies, private sector companies, and project affected communities; and

Attending training seminars and workshops as part of the capacity building program.

Solid Waste Management Professional

Coordination and liaison with counterparts in the consultants’ team;

Providing selected technical inputs to the design and implementation of the SWM subcomponents in Buon Ma Thuot;

Coordination and liaison with key stakeholders, including government agencies, private sector companies, and project affected communities;

Coordination with the solid waste and environment consultants in stakeholder consultation and awareness raising and application to the SWM subcomponent;

Advising on relevant government policies and guidelines relevant to the design and implementation of the SWM subcomponent; and

Attending training seminars and workshops as part of the capacity building program.

Environment Professional

Coordination and liaison with counterparts in the consultants’ team;

Coordination with the environment consultants on the implementation of the EMP and the application of environment safeguards in all three cities;

Coordination on the updates of the EMP and all environmental safeguard compliance;

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Key Position Roles and Responsibilities

Assisting the environment consultants in the design and conduct of environmental monitoring, including water quality testing and air pollution;

Advising on relevant government policies and guidelines relevant to the environment sector;

Coordination and liaison with key stakeholders, including government agencies, private sector companies and project affected communities; and

Attending training seminars and workshops as part of the capacity building program.

Resettlement Professional

Coordination and liaison with consultant team counterparts and the Centers for Land Fund Development;

Coordination with the resettlement and safeguards consultants on the design and implementation of the resettlement plans and the application of resettlement safeguards in all three cities;

Assisting the resettlement and safeguards consultants in coordination and liaison with key stakeholders, including the project affected communities;

Assisting in resettlement plan implementation and monitoring;

Advising on relevant government policies and guidelines relevant to the environment sector;

Attending training seminars and workshops as part of the capacity building program; and

Coordination and liaison with consultant team counterparts and the Women’s Unions.

Social Development and Gender Specialist

Coordination with the social, gender and livelihood consultants on the design and implementation of the social development initiatives and in particular the Gender Action Plan (GAP);

Assisting the social, gender and livelihood consultants in coordination and liaison with key stakeholders, including the project affected communities.

Assisting the social, gender and livelihood consultants in working closely with the Women’s Union on environmental awareness and employment generation initiatives proposed in all three cities;

Advising on relevant government policies and guidelines relevant to the social development and gender sectors; and

Attending training seminars and workshops as part of the capacity building program.

Architect/Landscape Architect/Urban Planner

Coordination and liaison with counterparts in the consultants’ team;

Coordination with the other consultants on all aspects of the environmental upgrading of Bong Son Lake in Ha Tinh, with particular reference to master planning, landscape design community tree planting and recreation and open space uses;

Ensuring design and implementation of the subcomponent in a timely manner and to a high quality;

Advising on relevant government policies and guidelines relevant to the upgrading of Bong Son Lake and its recreational after use;

Coordination and liaison with key stakeholders, including government agencies, private sector companies, and project affected communities;

Coordination and liaison with project affected communities to optimize community participation and ownership of large scale tree planting; and

Attending training seminars and workshops as part of the capacity building program.

Procurement Professional

Coordination and liaison with counterparts in the consultants’ team;.

Coordination with the technical and financial and monitoring specialists on all the financial, procurement aspects of the project in all three cities;

Assisting in the implementation and operation of the procurement plan and systems, including the provision of consulting services and for the procurement of goods and works contracts;

Participating in the process of preparing bid documentation, bid procedures, consultant and/or company selection, contract execution and monitoring;

14

Key Position Roles and Responsibilities

Advising on relevant government policies and guidelines relevant to procurement; and

Attending training seminars and workshops as part of the capacity building program.

Finance and Accounting Professional

Coordination and liaison with counterparts in the consultants’ team;

Coordination with the financial and administration specialists on all the financial, accounting and auditing aspects of the project in all three cities;

Assisting in the implementation and operation of the financial management systems and for financial accounting, reporting and loan disbursements, financial projections and budgeting;

Advising on government policies and guidelines relevant to the project’s financial management and accounting; and

Attending training seminars and workshops for capacity development.

15

C. Project Organization Structure

CPC = city people’s committee, DAKURENCO = Dak Lak Urban Environmental Company, MOF = Ministry of Finance, MPI = Ministry of Planning and Investment, PCI.QNa = Projects Construction Investment Management Authority, PMU = project management unit, PPC = provincial people’s committee, SBV = State Bank of Viet Nam. Source: Asian Development Bank.

Coordination Committee

Executing Agencies (EAs)

Implementing Agencies (IAs)

Project Implementing Units (PIUs)

Government of Viet Nam (MPI-MOF-SBV)

Asian Development Bank (ADB)

Quang Nam PPC Lead (EA) Coordinator

Buon Ma Thuot Subproject

- Mai Thi Luu Urban Road

Project Implementation Consulting Services (International + National) Project Support, Capacity Building and Fiduciary Activities

Ha Tinh CPC

Ha Tinh PMU Buon Ma Thuot City PMU

Quang Nam PCI QNa Lead Coordinator

Quang Nam PCI QNa DAKURENCO

Dak Lak PPC Ha Tinh PPC

Buon Ma Thuot Subprojects

- Solid waste management - Tran Quy Cap Urban Road

Buon Ma Thuot CPC

Tam Ky All Subprojects

Ha Thinh All Subprojects

16

IV. COSTS AND FINANCING 21. The project is estimated to cost $121.71 million, including taxes, duties, and physical and price contingencies (Summary Project Investment Plan). 22. The Asian Development Fund (ADF) facility will fund civil works for the following expenditure items: (i) solid waste management, (ii) flood management and storm drainage improvement, (iii) urban roads improvement, and (iv) environmental improvements. In addition, the ADF loan will fund (i) consulting services, (ii) equipment, (iii) taxes and duties for Quang Nam (Tam Ky City), (iv) incremental administration, (v) contingencies, (vi) interest during construction, and (vii) bank charges, transportation and insurance costs8. Counterpart funding from the Government of Viet Nam (from the Provinces of Dak Lak, Ha Tinh, and Quang Nam) will fund the following expenditure items: (i) incremental administration including design and supervision consultants, (ii) land acquisition and resettlement, and (iii) duties and taxes which will be provided by the PPCs, except for Quang Nam (Tam Ky City) which will be financed by ADB.

Summary Project Investment Plan ($ million)

Item Amounta

A. Base Costb

1. New and improved urban infrastructure and climate change adaptation a. Solid Waste Management Improvement 15.51 b. Flood Management and Storm Drainage Improvement 23.16 c. Strategic Roads and Related Urban Environment Improvements 58.55 2. Improved community awareness for sustainable environmental management through IEC 1.01 3. Improved competencies in integrated urban development, environmental planning, climate change adaptation, and project management 0.95 Subtotal (A) 99.18 B. Contingencies

c 18.06

C. Financing Charges During Implementationd 4.47

Total (A+B+C) 121.71 a Includes taxes and duties of $6.99 million, $2.49 million to be financed from ADB loan and $4.5 million will be

funded by government resources.

b In January 2013 prices.

c Physical contingencies computed at 10% for civil works, equipment, and design and supervision. Price

contingencies computed at 3.88% on foreign exchange costs and 27.62% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate.

d Includes interest and commitment charges. Interest during construction for ADB loan has been computed at 2% per

annum which is the offered rate for Group B (ADF blend). Source: Asian Development Bank estimates.

23. The government has requested a loan in various currencies equivalent to SDR62,690,000 ($95.0 million equivalent) from ADB’s Special Funds resources to help finance the project. The loan will have a 25-year term, including a grace period of 5 years, an interest rate of 2.0% per annum during the grace period and thereafter, and such other terms and conditions set forth in the draft loan and project agreements. The loan will fund civil works for the following expenditure items (i) SWM, (ii) flood management and storm drainage improvement, (iii) urban roads, and (iv) environmental improvements. The loan will also fund (i) consulting services; (ii) equipment; (iii) taxes and duties for Quang Nam (Tam Ky City);

8 The ADB loan will finance (i) the taxes and duties of Tam Ky as requested, as it is within reasonable country

thresholds, does not represent an excessive share of the project investment, the taxes and duties apply only to ADB-financed expenditures and is material and relevant to the Project’s success; and (ii) incremental administration (excluding salaries), bank charges, transportation, and insurance costs to facilitate project implementation.

17

(iv) incremental administration; (v) contingencies; (vi) interest during construction; and (vii) bank charges, transportation, and insurance costs.9 The government will grant the loan proceeds to Dak Lak, Ha Tinh, and Quang Nam provincial governments. Counterpart funding of $26.71 million from the government (comprised of $9.79 million from Dak Lak, $10.45 million from Ha Tinh, and $6.47 million from Quang Nam provinces) will fund (i) incremental administration, including detailed engineering design and supervision of consultants; (ii) land acquisition and resettlement; and (iii) duties and taxes provided by the provinces, except for Quang Nam. The Financing Plan is summarized below.

Summary Financing Plan ($ million)

Source Amount Share of Total

(%)

Asian Development Bank (Asian Development Fund) 95.00 78.0 Government of Viet Nam 26.71 22.0

Total 121.71 100.0

Source: Asian Development Bank estimates.

9 The ADB loan will finance (i) taxes and duties of Tam Ky as requested, as these are within reasonable country

thresholds, do not represent an excessive share of the project investment, and apply only to ADB-financed expenditures that are material and relevant to the project’s success; and (ii) incremental administration (excluding salaries), bank charges, transportation, and insurance costs to facilitate project implementation.

18

A. Detailed Cost Estimates by Expenditure Category

Expenditure Account $ million

Total Cost % of Total

Project Costs

I. Investment Cost a A. Civil Works

1. Ha Tinh 2. Buon Ma Thuot 3. Tam Ky

24.25 19.26 25.41

20% 16% 21%

Subtotal 68.92 57%% B. Equipment

1. Buon Ma Thuot

1.89

2%%

Subtotal 1.89 2% C. Land Acquisition and Resettlement

1. Land Acquisition and resettlement support in Ha Tinh 8.07 7% 2. Land Acquisition and resettlement support in Buon Ma Thuot 7.67 6% 3. Land Acquisition and resettlement support in Tam Ky 6.47 5%

Subtotal 22.21 18% D. Consulting Services and Project Management

1. Consulting services 2.14 2% 2. Incremental administrationb 4.02 3%

Subtotal 6.16 5%

Total Baseline Costsc 99.18 81% II. Contingenciesd

A. Physical contingencies 11.72 10% B. Price contingencies 6.34 5% Subtotal 18.07 15%

Total Project Costs 117.24 97% Interest during construction e 4.47 3%

Grand Total 121.71 100% a Includes taxes and duties of $6.99 million, $2.49 million to be financed from ADB loan (for Tam Ky City), and $4.5

million will be funded by government resources. b Includes project management & implementation support for PMUs, 1 vehicle per city, provision for financial audits,

office equipment (computers, printers, etc.), meetings and workshops, and communications and reports, travel expenses.

c In January 2013 prices.

d Physical contingencies computed at 10% for civil works, equipment, and design and supervision. Price

contingencies computed at 3.88% on foreign exchange costs and 27.62% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. $2.00 million of the counterpart contingencies include land acquisition and resettlement costs under the Buon Ma Thuot subproject costs. In addition, $2.60 million of the counterpart contingencies include contingencies for land acquisition and resettlement estimated in the resettlement plans including income restoration program.

e Includes interest and commitment charges. Interest during construction for the ADB loan has been computed at 2%

per annum which is the offered rate for Group B (ADF blend). Sources: Consultants’ estimates and ADB forecast for foreign and local escalation costs for price and physical contingencies.

19

B. Allocation and Withdrawal of Loan Proceeds

ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS

(Secondary Cities Development Project in Buon Ma Thuot, Ha Tinh, and Tam Ky)

CATEGORY ADB FINANCING

No. Item

Total Amount Allocated for ADB Financing (SDR)

In $ million

Percentage and Basis for Withdrawal from the Loan

Account

Category Subcategory

1 Civil Works 64.96

1A Ha Tinh 22.04 100% of total expenditure claimed*

1B Buon Ma Thuot 17.51 100% of total expenditure claimed*

1C Tam Ky 25.41 100% of total expenditure claimed

2 Equipment for Buon Ma Thuot 1.72 100% of total expenditure claimed*

3 Consulting Services 2.06 96% of total expenditure claimed

4 Project Management (Incremental Costs)

3.81 95% of total expenditure

claimed

5 Interest During Implementation

4.47 100% of total amount due

6 Unallocated 17.98

TOTAL 95.00

* Exclusive of taxes and duties within the territory of the Borrower

20

C. Detailed Cost Estimates by Financier

Expenditure Accounts by Financiers

Expenditure Account ADB Loan Government of Vietnam Total

Non-tax Amount

Taxes Subtotal % Non-Tax Amount

Taxese Subtot

al %

Amount %

I. Investment Costsa

A. Civil Works and Equipment

1. Ha Tinh 22.04

22.04 91% 0.00 2.21 2.21 9% 24.25 20%

2. Buon Ma Thuot 17.51

17.51 91% 0.00 1.75 1.75 9% 19.26 16%

3. Tam Ky 23.10 2.31 25.41 100% 0.00

0.00 0% 25.41 21%

Subtotal 62.65 2.31 64.96 94% 0.00 3.96 3.96 6% 68.92 57%

B. Equipment

1. Buon Ma Thuot 1.72

1.72 91% 0.00 0.17 0.17 1% 1.89 2%

Subtotal 1.72

1.72 91% 0.00 0.17 0.17 1% 1.89 2%

B. Land Aquisition and Resettlement

1. Land Acquisition and resettlement support in Ha Tinh 0.00

0.00 0% 8.07

8.07 100% 8.07 7%

2. Land Acquisition and resettlement support in Buon Ma Thuot 0.00 0.00 0% 7.67 7.67 100% 7.67 6%

1. Land Acquisition and resettlement support in Tam Ky 0.00 0.00 0% 6.47 6.67 100% 6.47 5%

Subtotal 0.00

0.00 0% 22.21 0.00 22.21 100% 22.21 18%

C. Consulting Services

1. Consulting Services 2.03 0.03 2.06 96% 0.00 0.08 0.08 4% 2.14 2%

Subtotal 2.03 0.03 2.06 96% 0.00 0.08 0.08 4% 2.14 2%

D. Project Management

1. Incremental Costsb

3.66 0.15 3.81 95% 0.00 0.21 0.21 5% 4.02 3%

Subtotal 3.66 0.15 3.81 95% 0.00 0.21 0.21 5% 4.02 3%

Total Baseline Costs 70.06 2.49 72.55 73% 22.21 4.42 26.63 27% 99.18 81%

II. Contingencies

A. Physical Contingencies

c 11.72

11.72 100% 0.00

0.00 0% 11.72 10%

B. Price Contingencies 6.26

6.26 99% 0.08

0.08 1% 6.34 5%

Subtotal 17.98

17.98 99% 0.08

0.08 1% 18.06 15%

Total Project Costs

Interest During Implementation

d 4.47

4.47 100% 0.00

0.00 0% 4.47 4%

Grand Total 92.51 2.49 95.00 76% 22.29 4.42 26.71 18% 121.71 100% a In January 2013 prices.

b Incremental cost include insurance and transportation costs, office equipment (computers, printers, etc.), meetings and workshops, and communications and reports. No salaries

of Government of Viet Nam counterpart staff will be paid. However, field work entailing travelling expenses may be covered. c Physical contingencies computed at 10% for civil works, equipment, and design and supervision. Price contingencies computed at 3.88% on foreign exchange costs and 27.62%

on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. $2.0 million of the counterpart

21

contingencies include land acquisition and resettlement costs under the Buon Ma Thuot subproject costs. In addition, $2.6 million of the counterpart contingencies include contingencies for land acquisition and resettlement estimated in the resettlement plans including income restoration program.

d Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at 2% per annum which is the offered rate for Group B (ADF blend).

e The taxes and duties will be financed by the government by provision of funds.

Source: Consultants’ estimates and ADB forecast for foreign and local escalation costs for price and physical contingencies.

22

D. Detailed Cost Estimates by Outputs

a In January 2013 prices.

b Physical contingencies computed at 10% for civil works, equipment, and design and supervision. Price contingencies computed at 3.88% on foreign exchange costs and 27.62% on

local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. $2.0 million of the counterpart contingencies include land acquisition and resettlement costs under the Buon Ma Thuot subproject costs. In addition, $2.60 million of the counterpart contingencies include contingencies for land acquisition and resettlement estimated in the resettlement plans including income restoration program.

c Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at 2% per annum which is the offered rate for Group B (ADF blend).

Source: Consultants’ estimates and ADB forecast for foreign and local escalation costs for price and physical contingencies.

Item

New and Improved Urban Infrastructure and Climate Change Adaptation Improved Competencies in

Integrated Urban Development, Environmental

Planning, Climate Change Adaption and Project

Management

Total Cost Improved Solid Waste

Management

Strengthened Flood, Storm, Water and Drainage

Management

Strategic Urban Access Roads and Related

Environmental Improvements

Increased Community Awareness Through IEC, Along With Associated

Livelihood Opportunities

Amount

% of Cost Category

Amount % of Cost Category

Amount % of Cost Category

Amount % of Cost Category

Amount % of Cost Category

I. Investment Costa

A. Civil Works and Equipment 70.81 7.04 10% 18.23 26% 45.54 64% 0.00 0% 0.00 0%

Subtotal Civil Works and Equipment 70.81 7.04 10% 18.23 26% 45.54 64% 0.00 0% 0.00 0%

B. Land Acquisition and Resettlement

1. Land acquisition and resettlement support 22.21 7.48 33% 3.46 16% 11.27 51% 0.00 0% 0.00 0%

Subtotal 22.21 7.48 33% 3.46 16% 11.27 51% 0.00 0% 0.00 0%

C. Consulting Services and Project Management

1. Consulting Services and Incremental Costs 6.16 0.99 16% 1.47 24% 1.74 28% 1.01 16% 0.95 15%

Subtotal 6.16 0.99 16% 1.47 24% 1.74 28% 1.01 16% 0.95 15%

Total Baseline Costs 99.18 15.51 16% 23.16 23% 58.55 59% 1.01 1% 0.95 1%

II. Contingenciesb

A. Physical contingencies 11.72 2.32 20% 3.55 30% 5.85 50% 0.00 0% 0.00 0%

B. Price contingencies 6.34 1.22 21% 2.57 41% 2.55 38% 0.00 0% 0.00 0%

Subtotal 18.06 3.54 19% 6.12 32% 8.40 49% 0.00 0% 0.00 0%

Total Project Costs

Interest during implementationc 4.47 0.29 7% 1.52 34% 2.62 59% 0.02 0% 0.02 0%

Grand Total 121.71 19.34 16% 30.80 25% 69.56 57% 1.03 1% 0.97 1%

23

E. Detailed Cost Estimates by Year

Source of Funds Total 2014 2015 2016 2017 2018 ADB Investment

I. Investment Costsa

A. Civil Works and Equipment

1. Ha Tinh 22.04 1.10 8.82 6.61 4.41 1.10 2. Buon Ma Thuot 19.23 0.96 7.69 5.77 3.85 0.96 3. Tam Ky 25.41 1.27 10.16 7.62 5.08 1.27 Subtotal Civil Works and Equipment 66.68 3.33 26.67 20.00 13.34 3.33

B. Land Acquisition and Resettlement

1. Land acquisition and resettlement support 0.00 0.00 0.00 0.00 0.00 0.00 Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 C. Consulting Services and Project Management

1. Consulting Services and Incremental Costs 5.87 0.29 2.35 1.76 1.17 0.29 Subtotal 5.87 0.29 2.35 1.76 1.17 0.29 Total Baseline Costs 72.55 3.63 29.02 21.77 14.51 3.63 II. Contingenciesb

A. Physical Contingencies 11.72 0.59 4.69 3.51 2.34 0.59 B. Price Contingencies 6.26 0.31 2.51 1.88 1.25 0.31 Subtotal 17.99 0.90 7.19 5.40 3.60 0.90 Total Project Costs 90.54 4.53 36.21 27.16 18.11 4.53 Interest during constructionc 4.47 0.22 1.79 1.34 0.89 0.22

TOTAL 95.00 4.75 38.00 28.50 19.00 4.75 Counterpart Fund of Provinces of Dak Lak, Ha Tinh, and Quang Nam

I. Investment Costs

A. Civil Works and Equipment

1. Ha Tinh 2.21 0.11 0.88 0.66 0.44 0.11 2. Buon Ma Thuot 1.92 0.10 0.77 0.58 0.38 0.10 3. Tam Ky 0.00 0.12 0.00 0.00 0.00 0.00 Subtotal Civil Works and Equipment 4.13 0.21 1.65 1.24 0.83 0.21

B. Land Acquisition and Resettlement

1. Land acquisition and resettlement support 22.21 1.11 8.88 6.66 4.44 1.11 Subtotal 22.21 1.11 8.88 6.66 4.44 1.11 C. Consulting Services and Project Management

1. Consulting Services and Incremental Costs 0.29 0.01 0.12 0.09 0.06 0.01 Subtotal 0.29 0.01 0.12 0.09 0.06 0.01 Total Baseline Costs 26.63 1.33 10.65 7.99 5.33 1.33 II. Contingencies

A. Physical contingencies 0.00 0.00 0.00 0.00 0.00 0.00

B. Price contingencies 0.08 0.00 0.03 0.02 0.02 0.00 Subtotal 0.08 0.01 0.03 0.02 0.02 0.00 Total Project Costs 26.71 1.34 10.68 8.01 5.34 1.34 Interest during Construction 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL 26.71 1.34 10.68 8.01 5.34 1.34

TOTAL PROJECT COST 121.71 6.09 48.69 36.51 24.34 6.09 % Total Project Cost

5% 30% 40% 20% 5%

a In January 2013 prices.

b Physical contingencies computed at 10% for civil works, equipment, and design and supervision. Price

contingencies computed at 3.88% on foreign exchange costs and 27.62% on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. $2.0 million of the counterpart contingencies include land acquisition and resettlement costs under the Buon Ma Thuot subproject costs. In addition, $2.6 million of the counterpart contingencies include contingencies for land acquisition and resettlement estimated in the resettlement plans including income restoration program.

c Includes interest and commitment charges. Interest during construction for ADB loan(s) has been computed at

2% per annum which is the offered rate for Group B (ADF blend). Source: Consultants’ estimates and ADB forecast for foreign and local escalation costs for price and physical contingencies.

24

F. Contract and Disbursement S-curve

0

10

20

30

40

50

60

70

80

90

100

Jan

-14

May

-14

Sep

-14

Jan

-15

May

-15

Sep

-15

Jan

-16

May

-16

Sep

-16

Jan

-17

May

-17

Sep

-17

Jan

-18

May

-18

Sep

-18

Amount ($ million)

Months

Culmulative disbursements

Culmulative contract awards

25

G. Fund Flow Diagram

= withdrawal application (W/A) forwarded by PMUs and consolidated by MOF, = payment released to imprest accounts, = payments to contractors, = direct payments. EA = executing agency, PIA = project implementing agency, PIU = project implementation unit, PMU = project management unit. Source: Asian Development Bank.

Contractors, Suppliers, Consultants, other Service Providers and Beneficiaries

Asian Development Bank (ADB) Ministry of Finance (MOF)

DAKURENCO PIU Sub-Imprest Account

PMU Imprest Account 1

PMU Imprest Account 3

PMU Imprest Account 2

Dak Lak PPC (EA)

Quang Nam PPC (EA)

Ha Tinh PPC (EA)

Buon Ma Thuot CPC (PIA)

Tam Ky CPC (Quang Nam PCI QNA)

(PIA)

Ha Tinh CPC (PIA)

26

V. FINANCIAL MANAGEMENT

A. Financial Management Assessment

24. Major project implementation issues have been covered in MOF Circular No. 108/2007/TT-BTC dated Sept. 7, 2007, entitled “Guiding the Financial Management Mechanism Applicable to ODA Programs and Projects”. 25. The capability of the PMUs and project implementation unit (PIU) (for DAKURENCO in Buon Ma Thuot) to comply with required accounting records and periodic audited statements covering the project imprest accounts cities have been confirmed by the financial management assessment conducted under the project preparatory technical assistance (TA). Responsibilities related to project implementation, fund disbursements, records-keeping, submission of financial and technical reports will form part of the capacity building program for the PMUs/PIU of the cities. 26. Provincial and/or city level urban and environmental limited company’s (URENCOs) will be the recipients of the completed facilities and infrastructure improvements at the end of project. The financial condition of the URENCOs have been examined to establish their financial soundness. To ensure financial sustainability for the adequate maintenance of the assets, funding requirements for operation and maintenance were evaluated. Annual budgetary requirements for Operations and Maintenance expenditures are covered by decisions and circulars from the Ministry of Construction (MOC) and the PPCs: (i) Decision No. 2272/BXD-VP date on 10/11/2008 of MOC on published cost estimates, norms for collection, transportation, treatment of urban waste using landfill mechanism; (ii) Decision No. 322/QD-BXD of Ministry of Construction on investment unit price and disposition cost of domestic solid waste, 6/4/2012; (iii) Resolution No. 15/2007/ND-HDND from the Dak Lak PPC on fees for various public services including waste management.; (iv) Decision no 3479/2001/QD-BGTVT date 19/10/2001 of Ministry of Transportation on budgetary guidelines on PMISO&M expenditures for roads; (v) Circular No. 11/2012TT-BXD dated 25/12/2012 issued by MOC on O&M budget for roads; (vi) Decision No. 271/BXD-VP dated 10/11/2008 of MOC on published cost estimation guidelines for urban drainage system. 27. A financial sustainability analysis was conducted for all subprojects by city to confirm that funds will be available to operate and maintain the assets that will be created under the project. For the SWM subproject in Buon Ma Thuot, the financial analysis confirmed that the proposed solid waste collection tariffs are expected to be sufficient to cover the O&M cost DAKURENCO will incur.10

B. Disbursement

28. The ADB loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2012, as amended from time to time),11 and detailed arrangements agreed upon between the government and ADB. 29. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),12 ADB funds may not be applied to the activities described in the ADB Prohibited Investment Activities List. All EAs and

10

Financial Analysis (Summary). Accessible from the list of linked documents in Appendix 2 of the RRP. 11

Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf 12

Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf

27

IAs will ensure that their investments are in compliance with applicable national laws and regulations and will apply the prohibited investment activities list to subprojects financed by ADB. 30. Three separate imprest accounts will be opened for the three EAs at the PMU levels. A sub- account will be opened in Buon Ma Thuot for the DAKURENCO PIU. The maximum ceiling of the imprest accounts, in aggregate, will not at any time exceed 10% of the loan amount. The currency of the imprest accounts is the U.S. dollar. The imprest accounts and sub-account are to be used exclusively for ADB’s share of eligible expenditures. SBV will select commercial banks acceptable to ADB. The EA who establishes the imprest account in its name is accountable and responsible for proper use of advances to the imprest account including advances to any sub-accounts. The EA may request for initial and additional advances to the imprest accounts based on an Estimate of Expenditure Sheet setting out the estimated expenditures to be financed through the accounts for the forthcoming six (6) months. Supporting documents should be submitted to ADB or retained by the EA in accordance with ADB’s Loan Disbursement Handbook when liquidating or replenishing the imprest accounts. As per fund flow diagram the PMUs will issue the payments to Contractors, Suppliers, Consultants, other Service Providers and Beneficiaries. If need may arise ADB can issue direct payments as well. 31. ADB's Statement of Expenditures (SOE) procedures are proposed for reimbursement and liquidation and replenishment of the imprest accounts, with applicable SOE ceiling. The ceiling of the SOE procedure is the equivalent of $100,000 per individual payment. Reimbursement and liquidation of individual payments in excess of the SOE ceiling should be supported by full documentation when submitting the withdrawal application to ADB. SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit.13 32. Before the submission of the first withdrawal application, SBV will submit to the ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the Borrower, together with the authenticated specimen signatures of each authorized person. All withdrawal applications will be consolidated by MOF and submitted to ADB. All PMUs will copy and keep the other PMUs informed of their withdrawal applications. The minimum value per withdrawal application is US$100,000 equivalent, unless otherwise approved by ADB. Individual payments below this amount should generally be paid from the imprest account, sub-imprest account, or by the EA/IA and subsequently claimed to ADB through reimbursement. ADB reserves the right not to accept withdrawal applications below the minimum amount. Withdrawal applications and supporting documents will demonstrate, among other things that the goods, and/or services were produced in or from ADB member countries and are eligible for ADB financing.

C. Accounting

33. The three provinces of Dak Lak, Ha Tinh, and Quang Nam which are the EAs through their respective PMUs (three cities of Buon Ma Thuot, Ha Tinh, and Tam Ky) will maintain

13

Checklist for SOE procedures and formats are available at: http://www.adb.org/documents/handbooks/loan_disbursement/chap-09.pdf http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-100-Below.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Contracts-Over-100.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Operating-Costs.xls http://www.adb.org/documents/handbooks/loan_disbursement/SOE-Free-Format.xls

28

separate books and records by funding source for all expenditures incurred on the project. The coordinating PMU will prepare consolidated project financial statements in accordance with the government's accounting laws and regulations which are consistent with international accounting principles and practices.

D. Auditing and Public Disclosure

34. The coordinating PMU will cause the detailed consolidated project financial statements to be audited in accordance with International Standards on Auditing and with the Government's audit regulations, by an independent auditor acceptable to ADB. The audited project financial statements will be submitted in the English language to ADB within six months of the end of the fiscal year by the executing agency. 35. The annual audit report will include an audit management letter and audit opinions which cover (i) whether the project financial statements present a true and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting framework; (ii) whether loan and grant proceeds were used only for the purposes of the project or not; (iii) the level of compliance for each financial covenant contained in the legal agreements for the project; (iv) compliance with the imprest fund procedure; and (v) compliance with use of the SOE procedure certifying (a) to the eligibility of those expenditures claimed under SOE procedures, and (b) proper use of the procedure in accordance with ADB’s Loan Disbursement Handbook and the project documents. 36. Compliance with financial reporting and auditing requirements will be monitored by review missions and during normal program supervision, and followed up regularly with all concerned, including the external auditor. 37. The Government of Viet Nam and the three provinces of Dak Lak, Ha Tinh, and Quang Nam (the three executing agencies of the project) have been made aware of ADB’s policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited project financial statements.14 ADB reserves the right to require a change in the auditor (in a manner consistent with the constitution of the borrower, or for additional support to be provided to the auditor, if the audits required are not conducted in a manner satisfactory to ADB, or if the audits are substantially delayed. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures. 38. The province of the Dak Lak will cause the audited financial statements (AFS) for Dak Lak URENCO (in relation to the revenue-earning solid waste component) to be submitted in the English language within 6 months of every fiscal year end.

14

ADB Policy on delayed submission of audited project financial statements:

When audited project financial statements are not received by the due date, ADB will write to the executing agency advising that (i) the audit documents are overdue; and (ii) if they are not received within the next six months, requests for new contract awards and disbursement such as new replenishment of imprest accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed.

When audited project financial statements have not been received within 6 months after the due date, ADB will withhold processing of requests for new contract awards and disbursement such as new replenishment of imprest accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (i) inform the executing agency of ADB’s actions; and (ii) advise that the loan may be suspended if the audit documents are not received within the next six months.

When audited project financial statements have not been received within 12 months after the due date, ADB may suspend the loan.

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39. Public disclosure of the project financial statements, including the audit report on the project financial statements, will be guided by ADB’s Public Communications Policy (2011).15 After review, ADB will disclose the project financial statements for the project and the opinion of the auditors on the financial statements within 30 days of the date of their receipt by posting them on ADB’s website. The Audit Management Letter and the Audited Financial Statements will not be disclosed.

15

Available from http://www.adb.org/documents/pcp-2011?ref=site/disclosure/publications

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VI. PROCUREMENT AND CONSULTING SERVICES

A. Advance Contracting

40. All advance contracting will be undertaken in conformity with ADB’s Procurement Guidelines (March 2013, as amended from time to time) (ADB’s Procurement Guidelines)16 and ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time) (ADB’s Guidelines on the Use of Consultants).17 Local counterpart funds will finance advance actions using procedures following National Procurement Law. The terms of reference for consultants will be shared by the Government of Viet Nam with ADB. The borrower, executing and implementing agencies have been advised that approval of advance contracting does not commit ADB to finance the Project.

41. Under advance contracting the following will be executed: (i) recruitment of national consultants for the detailed engineering design, (ii) preparation of bid documents to be reviewed by ADB and (iii) establishment by each EA of a grievance mechanism acceptable to ADB. The advance actions will be entirely financed by the counterpart funds. Prior to the recruitment of national consultants for the detailed engineering design, ADB will provide an individual consultant under the PPTA 7856 funds to help IAs and PMUs select and engage the national consultants in accordance with ADB’s Guidelines on Procurement and Use of Consultants.

B. Procurement of Goods, Works and Consulting Services

42. All procurement of goods and works will be in accordance with ADB’s Procurement Guidelines. Civil works will be procured through international competitive bidding (ICB) procedures for packages exceeding $5,000,000 equivalent, and through national competitive bidding (NCB) procedures acceptable to ADB for packages up to and including $5,000,000 equivalent. Goods will be procured through ICB procedures for packages exceeding $500,000 equivalent, and through NCB procedures acceptable to ADB for packages up to and including $500,000 equivalent. For packages of $100,000 equivalent or less, shopping may be used. 43. The procurement plan covers all procurement activity for the project and shall be finalized at loan negotiations. Within one year after the date of loan effectiveness, the executing agencies will submit a revised procurement plan to ADB for approval that captures all ongoing as well as proposed procurement. The plan will be updated annually or as required after every loan review mission or after award of each major ICB contract.

44. When the need arises during project implementation to change procurement arrangements (threshold, review requirements, method of procurement, contract packaging), the EAs, in consultation with ADB, will prepare a letter justifying the change submitted together with an updated procurement plan, and present it for ADB approval. For the purpose of oversight and monitoring, ADB will be responsible for posting the initial procurement plan and subsequent updates on ADB website. 45. All consultants will be recruited according to ADB’s Guidelines on the Use of Consultants (as amended from time to time).18 An estimated 474 person-months (135 international, 339

16

Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf 17

Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf 18

Checklists for actions required to contract consultants by method available in e-Handbook on Project Implementation at: http://www.adb.org/documents/handbooks/project-implementation/

31

national) of consulting services are required to (i) provide technical support to ensure that project implementation will fully comply with ADB policy and operational requirements for local detailed design, procurement, oversight to local construction supervision consultants, financial management, and social and environmental safeguard; (ii) design and conduct capacity strengthening and training programs in the areas of public infrastructure planning and implementation, financial management, and environmental management; (iii) through the Women’s Unions help local communities increase awareness of public health, sanitation, environmental management, and develop income generation activities; (iv) provide support to landfill operations in Buon Ma Thuot; and, assist PMUs in overall project management and monitoring and regular reporting to the Government of Viet Nam and the ADB. Consulting firms will be engaged using the quality-and-cost-based selection (QCBS) method with a standard quality:cost ratio of 80:20. 46. Modifications in Civil Works Contracts. In the case of any variation, which would in aggregate increase the original amount of the contract by more than 15%of the original price, the EA shall seek ADB’s no objection to the proposed extension, modification, or change order, providing detailed justification validated by the PMU. If ADB determines that the proposal will be inconsistent with the provisions of the financing agreement and/or procurement plan, it shall promptly inform the EA and state the reasons for its determination. A copy of all amendments to the contract shall be furnished to ADB for its record.

C. Procurement Plan

47. A procurement capacity assessment has been completed and based on the results, there are no specific issues of concern beyond the shortage of trained professional staff capacity for conducting consultant recruitment and procurement of goods and works and consequent risks of delay in project implementation. The project will therefore recruit an individual management/procurement specialist to work with the PMUs prior to the appointment of the consulting team. 48. The procurement plan is set out below in full. The supporting procurement capacity assessment can be made available upon request.

Basic Data Project Name: Secondary Cities Development Project (Tam Ky, Ha Tinh and Buon Ma Thuot)

Country: Viet Nam Executing Agencies: Provincial People’s Committee of Quang Nam, Ha Tinh, and Dak Lak

Loan Amount: $95.0 million Loan Number: 45198-004

Date of First Procurement Plan: February 2013 Date of this Procurement Plan: May 2013

1. Process Thresholds, Review and 18-Month Procurement Plan

a. Project Procurement Thresholds

49. Except as the ADB may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works Method Threshold ICB for Works $5,000,000 and above ICB for Goods $500,000 and above

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NCB for Works Beneath that stated for ICB, Works NCB for Goods Beneath that stated for ICB, Goods Shopping for Works Below $100,000 Shopping for Goods Below $100,000 ICB = international competitive bidding, NCB = national competitive bidding.

b. ADB Prior or Post Review

50. Except as ADB may otherwise agree, the following prior or post review requirements apply to the various procurement and consultant recruitment methods used for the project.

Procurement Method Prior or Post Comments

Procurement of Goods and Works

ICB Works Prior All bidding documents and contracts

ICB Goods Prior All bidding documents and contracts

NCB Works Post Prior review for first set of bidding documents for each executing agency in the English language

NCB Goods Post Prior review for first set of bidding documents for each executing agency in the English language

Shopping for Works Post

Shopping for Goods Post

Recruitment of Consulting Firms

Quality- and Cost-Based Selection Quality- and Cost-Based Selection Quality- and Cost-Based Selection

Prior Prior

Prior

Project Implementation Support package Financial Audit package (Above 2 packages will each cover the 3 cities) Construction Supervision (1 package for all supervision for each city – i.e. 3 packages)

ICB = international competitive bidding, NCB = national competitive bidding.

c. Goods and Works Contracts Estimated to Cost More Than $1 Million

51. The following table lists goods and works contracts for each city subproject.

General Description (Package code)

Contract Valuea

(USD ‘000)

Procurement Method

Prequalify Bidders (Yes/No)

Advertisement Date (quarter/year)

Tam Ky TK-01-Dyke (4 Sections ) TK-02-Dien Bien Phu Road & Bridges Buon Ma Thuot BMT-01-Tran Quy Cap Rd BMT-02-Mai Thi Luu Rd BMT-03A-Hoa Phu Landfill BMT-03B-Closure Cu Eabur Dump Ha Tinh HT-01-Five Major Drains + Thach Trung Regulating Basin HT-HT- 02- Bon Song Lake Environmental Improvements HT-03-Nguyen Trung Thien Rd (Central+South) + Hai Thuong Lan Ong Rd

7,453

16,858

8,860 3,494 3,431

776

9,013 4,231 7,810

NCBb

ICB

ICB NCB NCB NCB

NCB NCB NCB

No No

No No No No

No No No

3/2014 4/2014

3/2014 3/2014 3/2014 3/2016

4/2014 3/2014 4/3014

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General Description (Package code)

Contract Valuea

(USD ‘000)

Procurement Method

Prequalify Bidders (Yes/No)

Advertisement Date (quarter/year)

GOODS Buon Ma Thuot BMT03C- Landfill Equipment

1,719

ICB

No

2/2016

a All values are subject to change based on detailed engineering design.

b Based on the location of these contracts and based on commonly-experienced absence of participation by international firms in

the tendering of packages of comparable nature, value and location, ADB approved to the use of NCB in the best interests of the project. If any more packages to be included in PP under this project, they will be submitted to standard thresholds indicated in the Plan, unless reviewed and agreed on a case-by-case basis.

d. Consulting Services Contracts

Contract Value

(USD 000) Recruitment

Method International or

National Assignment

Advertisement Date

quarter/year)

1. Joint Consulting Package for all 3 cities for Project Support, Capacity Building and Fiduciary Activities including: Technical, Financial, SWM Operations, Procurement, Environmental and Social Support including support for Women’s Unions and Training1. 2. Financial Audits for all 3 cities1. 3. Contract Management and Construction Supervision for each city: - Tam Ky - Ha Tinh - Buon Ma Thuot

5,230

600

1,100 985 955

QCBS

QCBS

QCBS QCBS QCBS

International

National

National National National

3/2014

1/2015

4/2014 4/2014 4/2014

1 One joint consulting package, which will be procurred by the Lead Coordinator.

2. Competitive Bidding

a. National Competitive Bidding

52. The laws to be followed for national competitive bidding are set forth in (i) the Law on Procurement No. 61/2005/QH11 of 29 November 2005, (ii) the Construction Law no. 16/2003/QH11 of 26 November 2003, (iii) the Amendment Law No. 38/2009/QH12 of 19 June 2009 amending and supplementing key articles of the above-mentioned two laws, and (iv) the processes described in Decree No. 85/2009/ND-CP of 15 October 2009 on “Guiding Implementation of Procurement Law and Selection of Construction Contractors under the Construction Law”. Whenever any procedure in the national procurement laws is inconsistent with the ADB Procurement Guidelines (March 2013, and as amended from time to time), the ADB Guidelines shall prevail, amongst others on the following.

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b. Registration

(i) Bidding shall not be restricted to pre-registered firms and such registration shall not be a condition for participation in the bidding process.

(ii) Where registration is required prior to award of contract, bidders: (a) they shall be allowed a reasonable time to complete the registration process; and (b) shall not be denied registration for reasons unrelated to their capability and resources to successfully perform the contract, which shall be verified through post-qualification.

(iii) Foreign bidders shall not be required to register as a condition for submitting bids.

(iv) Bidder’s qualification shall be verified through pre- or post-qualification process.

c. Eligibility

(i) National sanction lists may only be applied with approval of ADB.19 (ii) A firm declared ineligible by the ADB cannot participate in bidding for an ADB

financed contract during the period of time determined by ADB. (iii) A firm which has been engaged by the borrower to provide consulting services for

the preparation or implementation of a project, and any of its affiliates, shall be disqualified from subsequently providing goods, works, or services, resulting from or directly related to the firm's consulting services for such preparation or implementation.

d. Pre-qualification and Post qualification

(i) Post qualification shall be used unless prequalification is explicitly provided for in the loan agreement/Procurement Plan. Irrespective of whether post qualification or pre-qualification is used, eligible bidders (both national and foreign) shall be allowed to participate.

(ii) In the event where pre-qualification is used, interested firms shall be given no less

than 42 days to prepare their pre-qualification submission. (iii) When pre-qualification is required, the evaluation methodology shall be based on

pass/fail criteria relating to the firm’s experience, technical and financial capacities. (iv) Qualification criteria shall be clearly specified in the bidding documents, and all

criteria so specified, and only criteria so specified, shall be used to determine whether a bidder is qualified. The evaluation of the bidder’s qualifications should be conducted separately from the technical and commercial evaluation of the bid.

19

Section 52 of the Integrity Principles and Guidelines allows ADB to sanction parties who fail to meet ADB's high ethical standards based on the decisions of third parties, such a decision can only be made by the Integrity Oversight Committee on the basis of ADB's own independent examination of the evidence. As such, the process should follow the normal assessment and investigative processes prescribed by the Integrity Principles and Guidelines. http://www.adb.org/Documents/Guidelines/Integrity-Guidelines-Procedures/integrity-guidelines-procedures-2006.pdf.

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(v) In carrying out the post-qualification assessment, the employer/purchaser shall exercise reasonable judgment in requesting, in writing, from a bidder missing factual or historical supporting information related to the bidder’s qualifications and shall provide a reasonable time period (a minimum of 7 days) to the bidder to provide a response.

e. Preferences

(i) A margin of preference may be given for domestically manufactured goods in the evaluation of bids under international competitive bidding.

(ii) Regulations issued by a sectoral ministry, provincial regulations and local

regulations which restrict national competitive bidding procedures to a class of contractors or a class of suppliers shall not be applicable.

(iii) Foreign bidders shall be eligible to participate in bidding under the same conditions

as local bidders, and local bidders shall be given no preference (either in bidding process or in bid evaluation) over foreign bidders, nor shall bidders located in the same province or city as the procuring entity be given any such preference over bidders located outside that city or province.

f. Advertising

(i) Invitations to bid (or prequalify, where prequalification is used) shall be advertised in the Government Public Procurement Bulletin. In addition, the procuring agency should publish the advertisement in at least one widely circulated national daily newspaper or freely accessible, nationally-known website allowing a minimum of 28 days for the preparation and submission of bids and allowing potential bidders to purchase bidding documents up to at least 24 hours prior the deadline for the submission of bids. Bidding of NCB contracts estimated at $500,000 or more for goods and related services or $1,000,000 or more for civil works shall be advertised on ADB’s website via the posting of the Procurement Plan.

(ii) Bidding documents shall be made available by mail, or in person, to all who are willing to pay the required fee, if any.

(iii) The fee for the bidding documents should be reasonable and consist only of the cost of printing (or photocopying) the documents and their delivery to the bidder. (Currently set at VND1 million, increase subject to approval of ADB).

g. Standard Bidding Documents

(i) The Borrower’s standard bidding documents, acceptable to the ADB, shall be used. The bidding documents shall provide clear instructions on how bids should be submitted, how prices should be offered, and the place and time for submission and opening of bids.

(ii) Bidders shall be allowed to submit bids by hand or by mail/ courier.

h. Bid Opening

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(i) All bids received after the deadline for submission indicated in the bidding documents will be rejected.

(ii) All bids received before the bid submission deadline shall be opened except those with proper notice of withdrawal.

(iii) A copy of the bid opening record shall be promptly provided to all bidders who submitted bids.

i. Bid Evaluation

(i) Merit points shall not be used in bid evaluation.

(ii) Bidders shall not be eliminated from detailed evaluation on the basis of minor, non-substantial deviations.20

(iii) Except with the prior approval of ADB, no negotiations shall take place with any

bidder prior to the award, even when all bids exceed the cost estimates. (iv) A bidder shall not be required, as a condition for award of contract, to undertake

obligations not specified in the bidding documents or otherwise to modify the bid as originally submitted.

(v) Bids shall not be rejected on account of arithmetic corrections of any amount.

However, if the Bidder that submitted the lowest evaluated bid does not accept the arithmetical corrections made by the evaluating committee during the evaluation stage, its bid shall be disqualified and its bid security shall be forfeited.

j. Rejection of All Bids and Rebidding

(i) No bid shall be rejected on the basis of a comparison with the owner's estimate or budget ceiling without the ADB’s prior concurrence.

(ii) Bids shall not be rejected and new bids solicited without the ADB’s prior

concurrence. k. Participation by Government-owned Enterprises

53. Government-owned enterprises shall be eligible to participate as bidders only if they can establish that they are legally and financially autonomous, operate under Enterprise law and are not a dependent agency of the contracting entity. Furthermore, they will be subject to the same bid and performance security requirements as other bidders.

l. Non-eligibility of Military or Security Units

54. Military or security units, or enterprises which belong to the Ministry of Defence or the Ministry of Public Security shall not be permitted to bid.

20

Minor, non-substantial deviation is one that, if accepted, would not affect in any substantial way the scope, quality, or performance specified in the contract; or limit in any substantial way, the Contracting entity rights or the Bidder’s obligations under the proposed contract or if rectified, would not unfairly affect the competitive position of other bidders presenting substantially responsive bids.

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m. Participation by Foreign contractors and suppliers. Joint Ventures and

Associations

(i) Foreign suppliers and contractors from eligible countries shall, if they are interested, be allowed to participate without being required to associate or form joint ventures with local suppliers or contractors, or to sub-contract part of their contract to a local bidder.

(ii) A bidder declared the lowest evaluated responsive bidder shall not be required to

form a joint venture or to sub-contract part of the supply of goods as a condition of award of the contract.

(iii) License for foreign contractors operation in Viet Nam would be provided in a timely

manner and will not be arbitrarily withheld. n. Publication of the Award of Contract—Debriefing

(i) For contracts subject to prior review, within 2 weeks of receiving ADB’s “No-objection” to the recommendation of contract award, the borrower shall publish in the Government Public Procurement Bulletin, or well-known and freely-accessible website the results of the bid evaluation, identifying the bid and lot numbers, and providing information on: (a) name of each bidder who submitted a bid; (b) bid prices as read out at bid opening; (c) name and evaluated prices of each bid that was evaluated; (d) name of bidders whose bids were rejected and the reasons for their rejection; and (e) name of the winning bidder, and the price it offered, as well as the duration and summary scope of the contract awarded.

(ii) For contracts subject to post review, the procuring entity shall publish the bid

evaluation results no later than the date of contract award. (iii) In the publication of the bid evaluation results, the borrower shall specify that any

bidder who wishes to ascertain the grounds on which its bid was not selected, should request an explanation from the procuring entity. The procuring entity shall promptly provide an explanation of why such a bid was not selected, either in writing and / or in a debriefing meeting, at the option of the borrower. The requesting bidder shall bear all the costs of attending de-briefing or similar. In this discussion, only the bidder’s bid can be discussed and not the bids of competitors.

o. Handling of Complaints

55. The national competitive bidding documents shall contain provisions acceptable to ADB describing the handling of complaints in accordance with Decree No. 85/2009/ND-CP, read with Articles 72 and 73 of the Law on Procurement No. 61/2005/QH11.

p. ADB Member Country Restrictions

56. Bidders must be nationals of member countries of ADB, and offered goods, works, and services must be produced in and supplied from member countries of ADB.

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q. Fraud and Corruption

57. ADB will sanction a party or its successor, including declaring ineligible, either indefinitely or for a stated period of time, to participate in ADB-financed activities if it at any time determines that the firm has, directly or through an agent, engaged in corrupt, fraudulent, collusive, or coercive practices in competing for, or in executing, an ADB-financed contract.

r. Right to Inspect/Audit

58. Each bidding document and contract financed from by ADB shall include a provision requiring bidders, suppliers, contractors to permit the ADB or its representative to inspect their accounts and records relating to the bid submission and contract performance of the contract and to have them audited by auditors appointed by ADB.

D. Consultant’s Terms of Reference

Project Management and Implemenation Support (PMIS) 59. The PMIS consultant team will comprise international and national consultants. The consultant will manage technical areas for all three project cities. All consultants will work collectively as a team in delivering the required outputs. The consulting services required for the loan project will include, but will not necessarily be limited to, the services described in the terms of reference (TOR). The tasks are to be carried out in close cooperation with the concerned government agencies and ADB.

60. The consultants’ team leader and the deputy team leader will (i) assist in the overall organization of the project; (ii) guide, supervise, and coordinate the work of all team members; and (iii) take overall responsibility for preparing reports and consolidating reports prepared by all team members. The deputy team leader will assist the team leader to accomplish these tasks.

61. The consultants will provide implementation support, capacity development, and awareness building. Specifically, the consultants will (i) help ensure that project implementation will fully comply with ADB’s policies and operational requirements in terms of detailed designs, procurement, construction supervision, disbursement, financial management, and social and environmental safeguards, and gender and development policy; (ii) design and conduct capacity development programs in public infrastructure planning and implementation, operation and maintenance, financial management and cost recovery, and environmental management and climate resilience; (iii) help local communities increase awareness of public health, environmental management, and climate resilience; (iv) help the WUs in the three cities in developing their capacities for sustainable action orientated intervention for: (a) environmental awareness and community based environmental management; and (b) design and delivery of employment generation opportunities for women and; (v) assist in analytical studies on specific topics to be determined during the course of project detailed design and implementation.

62. The experts in the consultant team will help the EAs/IAs, implementing and the PMUs in project implementation support, capacity development, and awareness building. 63. The PMUs in each project city will provide suitable office accommodation for their consultants, and will facilitate the availability to the consultants of all relevant data, maps, and reports, and will also ensure access to all equipment, (including vehicles, computing, and communication equipment, purchased under the project) at no cost to the consultants. The

39

PMUs and participating agencies of each PPC and CPC will provide counterpart and support staff to work with the consultants and arrange introductions to concerned government organizations, divisions, and departments. The consultant team should include translators and interpreters to assist their international staff. 64. The section below table provides summary TORs for the various positions required for PMIS. The essential qualifications and experience required for each position are also discussed. All the national consultants should be fluent in English. All international consultants should preferably have experience working with ADB and have worked in Viet Nam or Southeast Asia. They should have appropriate degrees and years of relevant experience. International team leader/engineer = 1 x 4 person-months (PM) x 3 cities x 5 years = 60 PM and national deputy team leaders (3) / engineer / procurement specialists: 3 x 10 PM / year x 5 years = 150 PM Be responsible for overall project implementation and delivery of all aspects including but

not limited to procurement, safeguards, detailed engineering design, financial and social development.

establish the consulting services offices (one in each city), and coordinate and manage the overall consulting services inputs.

develop strong working relationship with executing agencies, implementing agencies, and PMUs, and ensure smooth coordination among them.

confirm commitments to project implementation from all stakeholders. develop detailed time bound implementation schedules. provide initial training in project management and oversight for PMUs. help ensure compliance with the relevant policies and guidelines of the Government of Viet

Nam and ADB. check as necessary detailed designs, cost estimates, bidding documents, and other contract

documentation. provide regular oversight to PMU staff and local consultants in the management of civil

works and goods contracts and in the supervision of construction and subsequent commissioning of works (these are separate consultancies to be engaged by the resective PMUs).

provide oversight for overall subproject financial management, accounting, disbursements and audit requirements.

assist in arranging for smooth handover of the project facilities to the agencies responsible for operation and maintenance including advice and assistance on the preparation of all documentation necessary (i.e., as-built drawings) to close out contracts.

ensure proper and timely submission of regular progress reports to executing agencies and ADB, particularly the progress against target indicators.

initiate actions in the event of any adverse, obligue and / or other variances against the original plan.

provide overall guidance to the implementation of training and community awareness programs.

assist in ensuring all resettlement and environmental impact mitigation measures are fully implemented, ensure associated reporting is completed, and minimize adverse environmental impacts during construction.

provide site management guidance to PMUs and local consultants in relation to the construction.

assist in project planning, scheduling, and reporting of sub-project activities. assist in ensuring the quality of all of the infrastructure components.

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update the draft procurement plan from time to time (at least annually). train executing agency, implementing agency, and PMU staff on ADB procurement

guidelines. assist in the detailed monitoring and evaluation surveys. provide overall support for selection of contractors and suppliers, contract management, and

quality control and inspection. ensure implementation of gender and social development measures, covering GAP and

community participation plan. 65. Project coordination support between the three cities will be provided by the International Team Leader and the three Deputy Team Leaders with input from other disciplines as necessary. International financial specialist: 1 x 2 PM x 3 for all cities X 3 for first 3 years = 18 PM and national financial specialist: 1x 3 PM x 3 for all cities cities x 5 years = 45 PM will (i) guide and assist the Project’s accountant in preparing good quality and timely

submission of the quarterly and annual project financial statements; (ii) ensure that the PMU has taken proper actions to ensure that (a) the auditor’s TOR has been approved by the Government and ADB; (b) the selection and the engagement of auditor are in compliance with the guidelines; (c) auditing arrangements has been made and monitored to support the good quality, complete and the timely submission of audited annual project financial statements; (d) in case, if the government’s audits were either not satisfactory or not applicable and/or not available, ensure that the PMU can allocate adequate funding to appoint private auditor; and (iii) ensure that the PMU provide good quality financial statements and help audit satisfactorily complete their assignment.

plan and organize financial management training seminars for the accounting staff in the three PMUs. The trainings will cover loan disbursement procedures and financial management practices for ADB financed projects including but not limited to ADB procedures and requirements as discribed in the Loan and Disbursement Handbook of ADB.

install good practices and knowledge for project accounting by providing on job training. identify any issues in the financial management system for project implementation in the

PMUs and recommend measures to address the issues identified. advise PMUs on organizational arrangements for effective financial management for project

implementation. assist PMUs to develop procedures for financial accounting, reporting and auditing and loan

disbursement for the project. guide and assist PMUs to process ADB loan withdrawal in accordance with ADB’s

procedures. Assist the executing agencies to coordinate with the PMUs and communicate with ADB in relation to financial management and loan withdrawal matters.

support PMUs to prepare documents for loan withdrawal including certificates and reporting formats for efficient and effective flow of funds between ADB, government, PMUs, other relevant local government departments and contractors.

assist PMUs to prepare and update continuously financial records, projections, and reports of the project in accordance with procedural requirements of ADB and the government.

review current budgeting, accounting, and financial reporting in the PMUs and Treasury agencies at the provincial and city levels, and recommend changes to improve the efficiency and accuracy of budgeting, accounting, and financial reporting systems.

review internal control systems in the PMUs and recommend improvements for internal control systems in the PMUs.

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will assist the PMUs to (i) develop and continuously improve monitoring system on financial statements and audited annual project financial and economic statements; (ii) communicate directly, or facilitates the EA’s staff to communicate, with staff of implementing agencies (IAs), ADB resident mission, project team leader and other stakeholders on further actions; (iii) ensure compliance with ADB’s financial management and audit requirements by reviewing, validating, monitoring and evaluating project teams’ implementation status of audited recommendations; and (iv) act as PMU’s focal point for all financial management, reporting and audit matters.

International monitoring and evaluation specialist: 1 x 1 PM x 3 cities x 3 years (first 3) years of project = 9 PM and national monitoring and evaluation specialist: 1x 2 PM x 3 cities x 5 years = 30 PM in association with the resettlement, social, and environmental specialists, assist in training

for the executing agency, implementing agency, and PMU staff on overall project requirements for monitoring and evaluation.

assist in harmonizing the government’s and ADB’s requirements for monitoring and evaluation.

assist in developing the monitoring and evaluation framework. assist in preparing detailed data formats, survey designs, and monitoring schedule. assist in preparing the terms of reference for the detailed monitoring and evaluation surveys,

selecting a survey firm, supervising the baseline survey, and analyzing the survey results all as maye be necessary.

undertake random checks on the performance of surveyors. review the survey results and provide comments for improvements. assist in ensuring the monitoring and evaluation framework and its indicators are regularly

updated. provide inputs to regular reports required. International landfill operations specialist for Buon Ma Thuot: 1 x 2 PM x 3 years = 6 PM

provide hands-on practical experience to train local operatives at the new landfill site;

training the equipment operators and site supervisors on site. provide general advice and assistance to DAKURENCO staff in overall Solid Waste

Management site operations in terms of maximizing equipment efficiency, assessing compliance with the operations manual (OM) and environmental management plan (EMP);

advise on appropriateness of leachate management arrangements and advise on maximizing materials recovery and recycling activities.

provide advice and assistance generally on all SWM disposal operations. undertake site audits, providing onsite and also office based training on all operational

aspects of the SWM facility, as well as preparing and writing summary reports of the audit findings and recommendations.

the specialist will visit the new site approximately twice a year for a three-year period. Each visit will be for a duration of about three weeks including travel time.

the final visit will be longer and require the preparation of a final report and recommendations for ongoing audits or amendments to the equipment or staffing, OM or EMP, if any.

International training specialist: 1 x 1 PM / year x 3 cities for first 2 years of project = 6 PM and national training specialist: 1x 2 PM / year x 3 cities x 5 years = 30 PM

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carry out initial training needs assessment and participant identification in each city to cover project management and increased competencies in integrated urban development, environment planning, climate resilience and gender mainstreaming.

select a representative set of participants for the training program, taking account of the need to focus on implementation staff, community leaders, social workers, subsequent operators and maintainers of facilities provided and general project coordination and implementation, but to also involve mass organizations, ward and district personnel plus relevant officials at city departmental levels.

prepare training course designs covering all the aspects mentioned above. provide advice to PMUs on support management, including general administration, logistics

and back-up services for the training courses. in collaboration with PMUs, undertake primary responsibility for administering the training

functions, running the sessions and ensuring that all management support requirements are clearly communicated well in advance to respective PMUs and the other offices involved.

carry out course evaluations, customized for the different target groups making up the set of participant, and involving a mix of questionnaires and interviews.

identify the sources for potential future trainers with the capacity for undertaking subsequent long term capacity-building and suggest the level of additional training such trainers may require.

make recommendations for the type of operational and training manuals that may be required for implementing long term capacity-building programs, with an outline of the contents and the resources required for drafting such manuals.

based on the findings of the pilot activities, make outline recommendations for the form and content of a long term program and identify the options for enhanced sustainability and institutionalization of the proposed program.

Engage local university and / or vocational training institute and / or any other local education institution for long term engagement on skill and capacity building.

International environmental specialist: 1x 1 PM / year x 3 cities x 5 years = 15 PM and national environmental specialist: 1 x 2 PM x 3 cities x 5 years = 30 PM prepare an updated environmental management plan (EMP) during detailed design and

engineering, and ensure that contractors prepare their respective site-specific plans based on the EMP and the actual site conditions.

check that the safeguards are adequately addressed in the bidding documents (instruction to bidders), and in the evaluation criteria for awarding contracts.

oversee the implementation of the safeguards related to handling of construction spoil and waste, water quality protection, public nuisance impacts, and public safety.

coordinate with the DONRE on regulatory compliance issues (for water quality in the Dien Bien River in Hung Yen, noise and dust from construction sites, sanitation in workers campsite, etc).

prepare terms of reference for the survey of the urban road component in Hung Yen and main sewage pipe routes to detect unexploded ordnance, and ordnance disposal if found.

prepare terms of reference for the conduct of water, soil and air quality sampling, including follow up interviews with local residents on issues and concerns arising during project construction.

advise the PIU on environment-related concerns arising during project construction, and recommend corrective measures.

disseminate to stakeholders the results of environment quality monitoring and implementation of safeguards, especially among households or small businesses near the road construction works.

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conduct follow-up consultations and interviews with local residents to identify concerns or grievances arising during road construction.

prepare a quarterly status report on environment and public safety protection to be submitted (through the PIU) to the PPC and DONRE.

set-up a system for environment monitoring within the PMUs to build and / or with DONRE on ongoing monitoring initiatives especially in Buon Ma Thuot.

Preparation for the evaluation of Contractor’s EMPs (CEMPs): establishing the environmental management criteria for bid evaluation and evaluation form (checklist), and close coordination and agreement with the procurement committee for scoring and weight in the overall bid evaluation.

Provide technical advice and support to the PMU Environmental Engineer and Grievance Point Person in implementing, the Grievance Redress Mechanism and necessary preparations, e.g., materials for dissemination and posting, documentation and communication systems, among others.

contribute to training specialist on development of training programme to include environment and climate resilience aspects - including but not limited to EMP implementation, environment monitoring and consultations.

conduct visits to working sites to provide guidance to the Environmental Engineer on the supervision of EMP implementation, and advice on any actions required to ensure EMP compliance.

Review monthly and semi-annual EMRs prepared by the Environmental Engineer and Grievance Point Person. Together with the two, finalize EMRs for submission to the PMU. Identify necessary improvement/s in monitoring.

coordinate with the urban planner on storm water management in the project area. International resettlement specialist: 1 x 1 PM x 3 for all cities x 2 years = 6 PM and national resettlement specialist: 1 x 2 PM x 3 for all cities x 3 years = 18 PM

provide the project design and operational phases with technical leadership related to

resettlement and social safeguards content. update and implement resettlement action plans for each city, intermittently and over the life

of the project. for the whole program, review existing resettlement frameworks and adjust them to project

infrastructure as necessary and acceptable to the government and ADB. review and reconfirm resettlement support packages developed within the project

preparation phase. conduct due diligence study and corrective action plan to identify permanent and temporary

socioeconomic impacts resulting from land acquisition, changes in land use, or restrictions of access to assets and common property resources.

define categories of impact and the eligibility of affected people for compensation, and prepare an entitlement matrix covering compensation for all lost assets and income and assistance to achieve full replacement costs for lost assets, income, and livelihoods.

prepare and carry out a consultation plan and a format for documenting consultation with affected people, listing events, people consulted, documents disclosed and timing of disclosure in accordance with ADB policies and summarizing issues raised, agreed actions, and improvements resulting from the consultation.

assess stakeholders’ concerns and consider possible changes in project design to minimize resettlement impacts. Help PMUs to finalize, disclose, and get the government endorsement of the resettlement plan prior to submission to ADB for review and approval.

assess whether the compensation standards for all types of assets, crops, and trees are based on replacement value and discuss in detail the valuation methodology used; and

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ensure that the resettlement budget is sufficient to acquire the land and implement the resettlement plan.

ensure that gender and ethnic minority issues are accurately covered within the resettlement and livelihood restoration phases of the project; and ensure that ethnic minority needs and issues are accurately accounted for in resettlement planning and implementation in the Buon Ma Thuot components.

incorporate social development dimensions in the grievance redress mechanism in preparation of compensation, assistance and benefits for displaced and affected persons.

accurately identify and track potential impoverishment risks and vulnerable groups, including those experiencing major impacts through the loss of assets and those with low income, indigenous peoples, households headed by women; and develop mitigation measures.

investigate implementation issues identified by the executing agencies, implementing agencies, PMUs, external monitor, ADB missions, or previous reviews by ADB.

discuss issues and findings with the executing agencies, implementing agencies, and PMUs; and formulate recommended actions.

provide resettlement training to project partners when necessary to inform them on the scope of: (i) ADB policy and procedural requirements, (ii) national laws and regulations, (iii) resettlement planning, including social impact, indigenous peoples and gender analyses, (iv) resettlement implementation and supervision, and (v) monitoring and evaluation.

monitor resettlement in both old and new sites; provide coordination with PMUs, local people’s councils, and the project’s community-based monitoring groups.

International social / gender / community development and livelihoods specialist: 1 x 1 PM x 3 for all cities x 3 years = 9 PM and national social / gender / community development and livelihoods specialist 1 x 2 PM x 3 for all cities x 3 years = 18 PM ADB seeks to improve the benefits of the project to the poor and the disadvantaged groups within the target areas. This will require specialist expertise in identifying affected and disadvantaged group and in accommodating their interests wherever feasible. The poverty/social and gender specialists will be needed to support project in implementation of GAP, the SPRSS and RPs. There will be capacity building in these areas that will also form part of the responsibilities of the specialists. The international specialist will have tertiary qualifications from an internationally recognized institution with at least 10 years experience in the South East Asia environment. At least 5 years experience will have been obtained in Viet Nam. The national specialist will have similar qualifications from a national educational institution and will also have a minimum of 10 years experience in related fields on internationally funded projects. Key duties and tasks of the specialist will include the following: Prepare and undertake orientation sessions on poverty and gender issues, GAP and

implementation responsibility with key EA/IA staff, provincial authorities. Assist and build capacity of the PMUs gender focal points in preparing GAP annual plan and

implementing provincial GAP, ensuring achieving gender related targets set in DMF and project GAP.

Provide technical gender inputs to different project GAP’s interventions, including delivering gender sensitization workshop, developing and guiding PMUs in applying sex-and ethnicity disaggregated M&E system to monitoring GAP and DMF target achievement etc. Working with Training coordinators and key training providers to integrate gender and poverty relevant contents in all related institution capacity building programs and ensure

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participatory training methodology built in to encourage women and ethnic minority people’s active participation.

Coordinate with resettlement specialist and local women’s union in undertaking detailed training needs assessment of impacted households/women to ensure the vocational training and livelihood activities delivered to targeted groups, appropriate in contents, scope, duration and project framework.

Work closely and guide the local Women’s Union in each participating city in delivering their services related to mobilizing local women’s participation in project consultation meetings, in project decision making processes, in gender and environment awareness raising, DRRM awareness raising, vocational training and livelihood activities within the framework of GAP and RPs.

Working with M&E specialist to support and mentor PMUs in planning and M&E of GAP implementation as well as in reporting to ADB on regular basis.

Document the results of the GAP implementation and make recommendations for changes in order to achieve GAP target, ensuring vulnerable groups, including women, ethnic minority can benefit equally as other groups.

Support PPMUs to monitor implementation of the gender action plan (GAP), stakeholder communication strategy, and participation plan. Provide leadership guidance when action plans at risk and determine corrective course of action as needed, in consultation with EA and other stakeholder partners. GAP progress monitoring to be included in regular review missions and project reporting documents. Gender impacts on Health benefit and time poverty improvement will be monitored and report with a qualitative approach, especially during MTR and PCR.

PMIS - Qualifications and Experience Required

Key Person and Task Qualifications Minimum Work Experience

International

Team Leader & Municipal Engineer

Masters in civil engineering or related subject.

15 years experience of infrastructure implementation under donor-funded projects of which 5 should be as team leader.

Landfill Operations Specialist Degree in municipal engineering, environmental management or equivalent

10 years experience of solid waste management facility design and operations

Environment Engineer/Planner Degree in environmental science/planning or equivalent

10 years experience in environmental management and assessment in developing countries

Social/Gender/Community/ Developments/Livelihood Specialist

Degree in social sciences, sociology or a related discipline.

8 years experience of community development and gender related work within urban communities.

Social Safeguards and Resettlement Specialist

Degree in social sciences, sociology or a related discipline.

8 years of experience in working with social safeguards in development projects (preferably ADB) and especially in the preparation and implementation of Viet Nam procedures.

Financial Specialist Recognized professional accountancy qualification.

8 years of experience of financial management and accounting of projects financed by multilateral development funding agencies.

Monitoring and Evaluation Specialist

Degree in social sciences, economics, urban geography, governance or a related discipline

5 years of experience of monitoring and evaluation preferably in projects financed by multilateral development funding agencies.

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Key Person and Task Qualifications Minimum Work Experience

Training Specialist Degree in administration, business management, governance, sociology or a related discipline

5 years of experience of design and delivery of training programmes relevant to the project and preferably in projects financed by multilateral development funding agencies.

National

Deputy Team Leader/Civil Engineers

Masters degree in civil or municipal engineering or equivalent

15 years experience on projects implementation including those funded by multilateral development funding agencies.

Social/Gender/Community/ Developments/Livelihood Specialist

Degree in social sciences, sociology or a related discipline.

5 years experience of community development work within urban communities, preferably with multi and/or bi-lateral development funding agencies, particularly the ADB.

Social Safeguards and Resettlement Specialists

Degree in social sciences, development sociology or a related discipline.

5 years experience of working with social safeguards in development projects preferably with multi and/or bi-lateral development funding agencies, particularly the ADB.

Environmental Specialist Degree in environmental engineering, urban planning or a related discipline

5 years of experience in environmental management or environmental impact assessment, preferably with multi and/or bi-lateral development funding agencies.

Financial Specialist Qualified accountant with a degree in business management or accounting

8 eight years of experience of financial management and accounts for urban development project implementation with multi and/or bi-lateral development funding agencies.

Monitoring and Evaluation Specialist

Degree in social sciences, economics, urban geography or a related discipline

5 years of experience of monitoring and evaluating urban development projects.

Training Specialist Degree in administration, business management, governance, social sciences, economics or a related discipline

5 years of experience of design and delivery of training programs relevant to the project and preferably in projects financed by multilateral development funding agencies.

66. The PMUs will also hire independent experts to carry essential monitoring activities related to safeguards implementation and performance and other essential auditing activities. This will include the following: 67. Resettlement – The PMUs will hire an independent external monitor (EM) specialist to monitor the implementation of the resettlement plan (RP). This EM should be mobilized before the implementation of the DMS. The main objectives of the external resettlement monitoring are:

• To verify the results of internal monitoring reports prepared by the PMU and Centers for

Land Fund Development (CLFD); • To examine whether provision of compensation and other agreed forms of assistance

complies with the approved RPs; • To assess whether supplemental assistance measures have been provided in

accordance with the IRPs, and the extent to which they have been effective in restoring incomes and living standards for severely affected households;

• To assess the effectiveness, impact and sustainable level of resettlement management agencies and procedures; and

• To propose necessary adjustments in the implementation of RPs and IRPs to improve implementation effectiveness.

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68. Strategic lessons for future policy formulation and planning will also be drawn from the monitoring and evaluation of the RPs. This is possible through a post-resettlement implementation evaluation study that will be carried out 6-12 months following completion of all resettlement activities.

69. The TOR for the external monitoring for resettlement planning will cover specific issues such as, but not limited to, the following:

• public consultation and disclosure activities;

• awareness of affected people on resettlement rights and entitlements; grievance redress, resettlement process, and project schedule;

• establishment of market rates for land and non-land assets;

• documentation of impacts and payments (detailed measurement survey [DMS], compensation documents,) as per agreed RP;

• coordination of resettlement activities with construction schedule;

• land recovery and transfer procedures;

• relocation of households, public assets, and sacred structures;

• quality of preparation of planned relocation sites;

• level of satisfaction of affected households (AHs) with the provisions and implementation of the RPs;

• effectiveness and efficiency of grievance redress mechanism (documentation, process, resolution);

• effectiveness, impact and sustainability of entitlements and rehabilitation measures/income restoration programs, and the need for further improvement, as required;

• gender impacts and strategy;

• capacity of AHs to restore/re-establish livelihoods and living standards, especially the severely affected, poor and vulnerable households. Monitor and assess the assistance and support provided or to be provided to these households;

• unanticipated impacts, or any resettlement impacts caused during construction activities;

• participation of AHs in RP planning, updating and implementation;

• institutional capacity, internal monitoring and reporting;

• channeling of government funds for payment of land, non-land assets and allowances to the affected households (if done transparently, efficiently, and effectively); and

• restoration and improvement of affected public, communal, and community assets.

Advanced Consultants Selection 70. An individual expert in management and/or procurement will be required from loan approval up to loan effectiveness and through to commencement of work by the consulting team. This expert will provide financial and management advice to the PMUs during the period of advance contracting actions, including the preparation of bidding documentation and the selection and appointment of consultants. Compliance with ADB policy and guidance in this

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interim period will be essential and it is therefore, likely this appointment will be an ADB staff consultant.

Financial Audit

71. A separate “Financial Audit Consultancy” is to be engaged. This will cove audits for the three city “sub-projects” as well as the project as a whole. The consultancy services will be financed from the ADB loan proceeds.

72. The objective of the audit is for each subproject in each city and the project as a whole, is to enable the auditor to:

express an independent opinion on the financial statements for the year(s)/period(s)

then ended, in accordance with the adopted accounting standards; express an opinion on the compliance with laws, regulations and funding agreements

that have a direct and material financial effect on the entity’s financial report and; express an opinion on the effectiveness of internal control over compliance with

requirements that could have a direct and material financial effect on the financial statements as well as internal control over financial reporting.

VII. SAFEGUARDS 73. The relevant safeguard plans include the: (i) environmental management plan, (ii) resettlement plan, and (iii) gender action plan.

A. Environmental Safeguards

74. The consultants will provide technical support to the EAs/IAs and the PMUs in the three provinces/cities to: (i) ensure that periodic projects reviews are properly carried out, coordinate reporting activities of the PMUs, (ii) monitor and coordinate all project related procurement to ensure compliance with safeguard requirements, and (iii) prepare and implement training programs for the PMUs. The EA will oversee the implementation of the different project subcomponents and ensure compliance with GOV environment regulations and ADB SPS 2009. 75. The PMUs will be responsible for “on-ground” implementation of environmental safeguard compliance, in particular for incorporating the mitigation measures set out in the EMP into the detailed engineering design of the subcomponents, as well as in the bid documents and construction contract documents. The PMUs will commission additional analysis, undertake environment-related investigations that may be required during implementation, and respond to environment or nuisance-related complaints from residents or businesses affected by the project works. 76. The IA/PMUs will hire a national monitoring institute to conduct the environmental monitoring and laboratory analyses that is specified by the updated EMP. The EMP will be updated by the PMU assisted by the consultants to address the detailed designs and engineering for the project component. 77. The provincial DONREs shall perform periodic inspection of ambient water, air and noise quality in the construction areas, and will review the environmental monitoring that is conducted by the monitoring institute pursuant to the environmental monitoring plan of the EMP. Environmental issues requiring management intervention will be reported to the PPC.

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78. Aside from overseeing the environmental monitoring, the PMU with support from the environment consultants will be in charge of all environment and public safety concerns. The PMU will ensure that safeguards items from the EMP, in particular the impact mitigation measures are included in all bidding contract documents and construction contracts. Monitoring of public nuisance and safety concerns will be carried out with the support of community-based monitoring groups which will be an integral part of the grievance redress mechanism (see below). The community-based monitoring groups will be established for each sub-project by the EAs/IAs with assistance from the PMUs. 79. Specifically, the environment safeguard tasks of the PMUs are as follows:

(i) update EMPs during detailed design and engineering, and ensure that contractors prepare their respective site-specific plans based on the EMPs and the actual site conditions.

(ii) ensure that the safeguards from updated EMPs are adequately addressed in the bidding documents (instruction to bidders), and in the evaluation criteria for awarding contracts.

(iii) oversee the implementation of the safeguards of updated EMPs relating to construction phase activities including handling of construction spoil and waste, water and air quality protection, public nuisance impacts (noise, dust, traffic, blocked areas, workers and camps), and public safety.

(iv) coordinate with DONRE on regulatory compliance issues (e.g. climate resilience standards and guidelines and noise and dust from construction sites).

(v) in conjunction with the EAs, consult the military and prepare TOR for surveys by the military of all excavation areas in the three cities to detect possible unexplored ordinance, and ordinance disposal if found.

(vi) prepare TOR for national monitoring institute for conducting laboratory analyses for the monitoring plans for the EMPs.

(vii) advise the PMU director on environment-related concerns arising during project construction, and recommend corrective measures.

(viii) disseminate to stakeholders the results of environment quality monitoring and implementation of safeguards, especially among households or small businesses near the civil construction works.

(ix) conduct follow-up consultations and interviews with local residents to identify concerns or grievances arising during road construction.

(x) prepare a quarterly status report on environment and public safety protection to be submitted (through the PMU director) to the PPC and DONRE.

80. A national environmental institute will be hired by the EA/IA executing to conduct the environmental monitoring plans for the three updated EMPs. 81. Safeguards compliance monitoring during the construction phase, particularly compliance with safeguard measures specified in construction contracts will be incorporated in the duties of the construction supervision group to be engaged. Compliance inspections and audits will be documented, and findings and recommendations for corrective measures submitted to the PPC through the PMU. 82. As part of its mandate, the provincial DONREs may conduct random water, air and noise quality sampling at construction sites, and review and inspect the environmental monitoring activities relevant to the EMP. The DONREs may respond to public complaints related to

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construction activities. The DONREs may also review the monitoring reports submitted by the PMU. If violations of government regulations are found, then DONREs may impose fines and issue a notice of rectification with a specific deadline to the responsible contractors. If complaints are formally received from the public through the implementing agency and PMU, the DONREs will carry out verification inspections, as described in the grievance redress mechanism (see below). 83. Within three months after the construction completion, an environmental acceptance monitoring an audit report on the completion of the project sub-components will be prepared by a qualified national environmental institute. The report will be reviewed by the DONRE and submitted to the ADB. 84. The environmental monitoring, including the environmental benefit monitoring, will be incorporated into the overall project monitoring and evaluation. Assisted by the environment specialists in the consultant team, the PMUs will be responsible for analyzing and consolidating the performance data. The environmental monitoring will be designed to allow adequate flexibility to adopt remedial actions regarding the project design, schedules, activities, and development impact. 85. At the start of the project, the PMUs and consultants will develop comprehensive environmental monitoring procedures for systematically generating the data on inputs and outputs of the project components, and agree on the environmental and related socioeconomic indicators to be used to measure the project’s impacts. The PMU will refine the environmental monitoring framework, confirm the achievable goals, firm up the monitoring and recording arrangements, and establish the systems and procedures no later than three months after the Loan takes effect.

86. The project will result in physical, social and economic displacement resulting from acquisition of land and buildings to secure implementation of the subprojects in all three cities. The nature and scale of displacement is specified in the RPs and where there are a number of major safeguards issues and activities, which guide implementation of the sub-components.

(i) The surveys which were conducted to enable the specification of resettlement impacts and baseline data for the preparation of the draft RPs. This includes the inventory of losses (IOL) to estimate resettlement impacts and a socioeconomic survey to assess pre-project living standards as well as likely social impacts resulting from land and building acquisition.

(ii) Public consultations with various stakeholders comprising government entities, private sector interests and affected households. Meaningful consultations will continue during the updating and implementation of the RPs. The draft and updated resettlement plans are to be disclosed to affected households and their communities.

(iii) The final RPs for all three cities shall be disclosed prior to project approval. The fundamental objective of the project resettlement policy is to replace and compensate lost assets based on the principle of replacement cost. Compensation and various forms of assistance will be provided. Once land acquisition and relocation is completed, income restoration programs will be put in place in a way that will ensure that standards of living of the project affected persons are at least restored to their pre-project levels, and that those in the category of vulnerable groups (i.e., poor households.) are assisted to help improve their socioeconomic status.

(iv) The RPs, will be updated upon loan effectiveness, endorsed by the EAs and submitted to the ADB for review and concurrence. The updated RPs will require further detailed

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studies (including DMS and replacement cost survey) and additional consultation. Principal aspects to be updated in the resettlement plans are resettlement impacts based on DMS; census of affected people; entitlement matrix; and replacement costs and details of consultations and disclosure.

(vi) The PMUs and/or CLFD, the wards/communes, and relevant mass organizations (particularly the WUs) will have primary responsibility for the updating and implementation of the RPs with the support of the consultants. As such the capacity of these bodies is of critical importance and the project must ensure appropriate capacity building assistance in the form of information, training, and consultation and mentoring.

B. Involuntary Resettlement Safeguards

87. The safeguard category for involuntary resettlement is A. Three resettlement plans (RPs) have been prepared for the sub projects, which will trigger land acquisition and resettlement (LAR) impacts. The nature and scale of impacts is specified in the 3 RPs prepared for each province. 88. The EAs/IAS and the PMUs will ensure that any involuntary resettlement is carried out in accordance with the agreed Resettlement Plan (RPs), ADB’s Safeguard Policy Statement (2009), and the Vietnamese laws and regulations on involuntary resettlement.

89. In case of discrepancies between the Government’s laws, regulations, and procedures, and ADB’s Safeguards Policy Statement (2009), ADB’ Safeguards Policy Statement will apply.

90. The EAs/IAS and the PMUs will ensure that the RPs agreed between the EAs and ADB will be updated following completion of detailed designs and will be submitted to ADB for review and concurrence.

91. The updated RPs will require further detailed studies (including Detailed Measurement Survey, and Replacement Cost Surveys) and additional consultation. Principal aspects to be updated in the resettlement plans are resettlement impacts based on detailed measurement survey; census of affected people; entitlement matrix; replacement costs and details of consultations and disclosure.

92. The EA will engage the services of a qualified appraiser to carry out the replacement cost survey for land and non-land assets, and submit the replacement cost survey report to the PPCs and PMUs for review and approval.

93. The PMUs and/or the Center for Land Fund Development (CLFD), the wards/communes and relevant mass organizations (particularly the WUs) will have primary responsibility for the updating and implementation of the RPs with the support of the project Implementation Support Consultant (ISC). As such the capacity of these bodies is of critical importance and the ISC will ensure appropriate capacity building assistance in the form of information, training, consultation and mentoring their implementation prior to or during RPs updating.

94. The EAs/IAS and the PMUs shall ensure that a site possession notice to a civil works contract to commence construction activities for a specific section is issued only when the head of the CLFD has officially confirmed in writing that (i) payment has been fully disbursed to the displaced persons and rehabilitation measures are in place for that specific section as

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per Updated RPs agreed between the EAs and ADB; (ii) already compensated DPs for that specific section have been cleared the area in a timely manner; and (iii) that the specific section is free from any encumbrances.

95. The EAs/IAS and the PMUs are responsible for disclosing and disseminating the draft and updated RPs as required in the relevant laws of Viet Nam and ADB Safeguard Policy Statement.

96. The EAs shall timely provide counterpart funds for land acquisition, resettlement and monitoring activities specified in the agreed RPs, and will meet any unforeseen obligations in excess of the RPs budget estimate in order to satisfy resettlement objectives.

97. PMUs are responsible for internal monitoring with assistance from the project Implementation Support Consultant (ISC). PMUs will submit quarterly monitoring reports to ADB. PMU will engage an external monitor (EM) to provide an independent periodic review and assessment of (i) achievement of resettlement objectives; (ii) changes in living standards and livelihoods; (iii) restoration of the economic and social base of the affected people; (iv) effectiveness and sustainability of entitlements; and (v) the need for further mitigation measures as required. Semi-annual external monitoring reports will be submitted to ADB and PMU.

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VIII. GENDER AND SOCIAL DIMENSIONS

A. Poverty Impact and Empowering the Poor

98. The selected cities are rapidly developing urban centers whose potential have been constraint by limited urban infrastructure. This contributes to the existing poverty in these cities abated by the poor’s lack of education, assets and land and business skills and their reliance on casual labor for employment. The target cities of Buon Ma Thuot, Tam Ky, and Ha Tinh, have poverty rates in 2010 at 2.6%, 7.93%, and 7.93% respectively. The urban households living in poverty are those with per capita income levels of $24 (VND 500,000) a month or $0.80 a day. Some 3,778 households in these cities currently receive state family assistance and around 50% of poor households are headed by women.

99. The project upon completion will improve the quality of life for people in the subproject areas. In Tam Ky and Ha Tinh, flood protection will protect the poor’s homes, reduce losses and improve living conditions, farm productivity and incomes. Roads improvement subprojects will improve mobility, open more business opportunities, raise employment opportunities and income, and improve access to social services such as education and health care for the poor. In Buon Ma Thuot, the closure of existing dumpsite at Cu Eabur and the opening of an engineered landfill at Hoa Phu will improve waste collection and disposal systems, improve local living conditions and ensure existing informal waste collectors are targeted for unskilled labor jobs generated by the project.

100. The poverty and inclusive design features of the project are the following: (i) measures to minimize the need for land acquisition and resettlement, and encourage the full participation and benefit of women, and ethnic minorities (EMs) in the subproject areas; (ii) the livelihood restoration program under the RP which targets affected households losing agriculture land; (iii) vocational training where possible, access to credit for livelihood and employment opportunities to the local poor and vulnerable people with priority given to women and those of EM groups; (iv) addressing awareness gaps among local residents on environment protection, solid waste management and disaster risk reduction and management (DRRM) for pro-environment practices which will lead to a better living environment and contribute to improved health status.

101. Consultations with the target beneficiaries, affected persons, and vulnerable groups were conducted during project preparation and will be continued during implementation. At least 50% of participants at the consultations will be women in collaboration with Farmers Union and Women’s Union. IEC programs will be delivered to residents of concerned subproject sites on SWM /garbage segregation (in Buon Ma Thuot) and DRRM topics (in Tam Ky and Ha Tinh) and on road safety topics. The project will prioritize support on vocational training, access to credit and employment opportunities to affected households; especially the poor, vulnerable, and informal waste collectors in Buon Ma Thuot landfills.

102. The Women Unions at city and ward levels in subproject sites will mobilize women’s participation and access to project benefits (during design consultation, construction, nominating women’s representative in local construction supervision boards, in IEC program on SWM, on DRRM and road safety campaigns). The women’s union will also engage local vocational training centers in participating cities to provide their vocational training services to project beneficiaries. The project will also partner with training centers to provide capacity building for professional staff on urban planning and environment management.

103. Each PMU will appoint social safeguard cum gender focal officer to monitor the GAP and report to ADB on the participation and benefit of the poor and vulnerable groups, including

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women. This will also cover progress related to mobilizing women participation in project activities in collaboration with local women’s union. Budgets will be allocated and contract will be signed with local Women union and vocational training centers to provide services.

B. Gender and Development

Project outputs Proposed actions and targets

Output 1: New and improved urban infrastructure and climate change adaptation

Of residents within the project area consulted on construction design and planning and urban planning policies, at least 50% attendance is women (with flexi time).

Technical training on supervision skills (construction, environment supervision) is organized for all members of local construction supervision boards with minimum 35% of women representation.

a

Sub-contractors ensure provision of safe working conditions (boots, gloves, lighting, etc) and separate women’s and men’s latrines at construction sites.

Awareness raising on HIV/AIDs/STD/anti-human trafficking is provided by contractors during workforce mobilization for laborers and community surrounding construction locales.

Target 15% female employment for unskilled labor jobs (prioritize poor and disadvantaged, ethnic minority women and informal waste pickers in current land fill) during construction .

The design of the urban access roads will have sealed surfaces / pavements for the safety of pedestrians, women and children.

Road will have speed bumps and other safety measures to slow traffic for the safety of pedestrian, women and children.

All roads will include road safety signs and adequate lighting for the security and safety of women and children.

At least 25% female staff employed by DAKURENCO (among roughly 50 jobs created) for the new SWM facility with priority given to informal waste pickers.

Ensure SWM facility O&M technical training includes gender- responsive materials integrating women’s issues and needs related to environment health and security for women’s waste pickers.

Provide safety and health equipment (safety gloves, clothes) to men and women workers in new SWM facility

Family health status improvement is evident among direct beneficiaries

21 living in related sub-project areas (flood

protection dyke and SWM facility).

Output 2: Increased community awareness through IEC, along with associated livelihood opportunities

Gender-sensitive IEC materials on SWM, DRRM, and road safety developed and disseminated to sub-project beneficiaries and ensure 50% of IEC facilitators are women.

Ensure dissemination meetings are held at times and locations convenient for women.

Target 2,000 BMT residents(with minimum 30% female recipients) trained by DAKURENCO and Viet Nam Women’s Union under the pilot IEC program on 3Rs of solid waste management, household composting, and waste segregation.

Target 4,000 Tam Ky and Ha Tinh residentsc (with minimum

50% women/girls) to be trained on flood protection and

21

This target will be monitored qualitatively during MTR and PCR.

55

DRRMb and solid waste management.

Target 3,000 residents (50% women and girls) residing adjacent to the new roads to receive IEC on road safety.

Target 25% women of total representatives in DRRM committee for Ha Tinh and Tam Ky.

Vocational training is provided to at least 1,100 women in sub-project areas, with priority given to those from disadvantaged households (poor, FHH with disabled family member, AHs) in project areas and current land fill site.

A total $270,000 credit revolving funds for income generation are established in three cities and targeted at female recipients of vocational training.

Output 3: Improved competencies in integrated urban development, environmental planning , climate change adaptation and project management .

Urban planning and environment management training program includes gender-responsive materials integrating women’s issues and needs.

Target 30% female staff participation in training for PMU professional staff on urban planning and environment management

At least 30% of participants in consultation meetings for climate resilient master planning are women

Ensure all PMU staff receives training on GAP and M&E requirements.

Each PPMU will develop PMU’s sub-GAP during inception phase to ensure and monitoring and reporting at each provincial level and consolidated into report to ADB.

Target 30% of female PMU staff in financial management, procurement, and safeguard monitoring training.

Operationalize project management information systems and tools including sex-disaggregated monitoring data and reporting systems for GAP activities.

Regular reporting on GAP, inputs in regular mission reports and consideration of gender issues/impact in midterm review and PCR.

BMT = Buon Ma Thuot, DAKURENCO = Dak Lak Urban Environmental Company, DRRM = disaster risk reduction management, FHH = female headed household, GAP = gender action plan, IEC = information, education and communication, M&E = monitoring and evaluation, O&M = operations and maintenance, PMU = project management unit, SWM = solid waste management. a In Buon Ma Thuot, the target is set at 50%.

b Suggested to include swimming skills education

c 3,000 residents in Tam Ky and 1,000 residents in Ha Tinh.

Source: Asian Development Bank.

56

104. Implementation arrangement for GAP. The city project management units (PMUs) will be responsible for the implementation of GAP and will appoint safeguard officers with dual responsibility as gender focal point(s) (30% part-time) ensuring annual planning, implementation, monitoring and evaluation (M&E) and reporting of GAP as part of project activities. The PMUs will recruit gender consultants (9 person-months, international and 18 person-months, national) to provide technical assistance to PMUs in GAP implementation, M&E, and reporting. They will support PMUs in preparing updated PMUs GAPs, as needed. The PMUs will partner with local agencies (especially Viet Nam Women's Union, vocational training institutes), to implement and coordinate consultation meetings, capacity building, awareness raising and road safety activities. The Gender specialists in each PMU will be advised by the international Social / Gender / Community / Developments / Livelihood Specialist of the PMIS. 105. Budget. Resources for GAP implementation will draw from separate budgets for capacity building training, infrastructure improvement, community awareness raising on sustainable environment management, gender consultants in consultancy package, and subcontracting of Viet Nam’s Women Union (on awareness raising on environment, disaster risk reduction management, on vocational training and credit for economic development). Total cost is estimated at the $500,000 for the three cities (excluding gender consultant recruitment) and is included in total project budget financed from ADB loan.

57

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION

A. Project Design and Monitoring Framework

Design Summary Performance Targets and Indicators with Baselines

Data Sources and Reporting Mechanisms

Assumptions and Risks

Impact

Improved urban environment and climate resilient infrastructure in Buon Ma Thuot in the central highland region and in the coastal cities of Ha Tinh and Tam Ky

By 2021: Buon Ma Thuot: Cu Eabur site will meet at least national standards for key air quality parameter [air quality baselines for TSP (0.71 mg/m

3),

NOX (3.77 mg/m3), SO2 (2.55

mg/m3), and H2S (4.46 mg/m

3) and

national standards for TSP (0.30 mg/m

3), NOX (0.20 mg/m

3), SO2

(0.35 mg/m3), and H2S (0.042

mg/m3)]

Ha Tinh: Storm water drainage standards set at 1:10 years storm event (baseline: 1 in 1 year for internal channels and 1 in 10 years for major channels in 2012) Tam Ky: Flood protection standard increased to 1:40 years storm event for dike and 1:25 years for road design (baseline: 1 in 5 years storm event in 2012)

Government statistics, decrees, and reports Provincial reports and statistics for Dak Lak, Ha Tinh, and Quang Nam Participating cities’ socioeconomic development reports and statistics Monitoring data from Department of Natural Resources and Environment of Dak Lak province, Ministry of Agriculture and Rural Development, and Ministry of Natural Resources and Environment

Assumptions

Central and provincial governments continue to support the cities’ development as regional growth centers Favorable business climate prevails in the participating provinces and cities Risk

Cities are adversely affected by natural disasters

Outcome

Increased coverage of resilient urban infrastructure and climate change adaptation in the participating cities

By 2019:

Buon Ma Thuot: Entire city population (300,000 people) benefitted from 100% waste collection and improved disposal systems with at least 75% reused and recycled (baseline: collection is 85% in 2012) Ha Tinh: 1,440 ha of land and property, and 88,000 people protected from frequent flooding and resulting damage (baseline: 727 ha of land and 15,000 people) Tam Ky: 185 ha of land and property, and 14,800 households (50,000 people) protected from frequent flooding and resulting damage (baseline: 40 ha of land and 10,000 people)

Participating cities’ project monthly status and progress reports Participating cities’ socioeconomic development reports and statistics Provincial reports and statistics of Dak Lak, Ha Tinh, and Quang Nam Consultants’ reports

Assumptions

Central, provincial, and city governments remain fully committed to the project Communities are aware of and support the project, and understand how they can participate and benefit from it Risk

Infrastructure built through the project is damaged by typhoons and flooding

Outputs

1. New and improved urban infrastructure and climate change adaptation

By 2019: Buon Ma Thuot: New solid waste engineered landfill in Ho Phu built and operationalized

Existing dumpsite in Cu Eabur closed scientifically in accordance with government regulations At least 25% of the staff employed for SWM are women (baseline: 0 in

Construction records Project progress and completion reports

Assumption

Safeguard documents are approved by the executing agencies on time and are strictly enforced Risks

Adequate counterpart funds for the subprojects and

58

Design Summary Performance Targets and Indicators with Baselines

Data Sources and Reporting Mechanisms

Assumptions and Risks

2012) Two road sections with total length of 6.80 km constructed Ha Tinh: Five main drains of 9.50 km and a regulating basin of 9 ha constructed (baseline: 0 in 2012) Three road sections with total length of 3.6 km constructed Tam Ky: Flood protection dike of 10.70 km and Dien Bien Phu urban road construction of 6.37 km (baseline: 0 in 2012) For the three cities: construction supervision boards established with 35% female representation

subcomponents are not made available promptly Women and other vulnerable groups are unable to participate in the project Planned infrastructure works may have adverse impacts through land acquisition, resettlement, and environmental degradation

2. Increased community awareness for sustainable environmental management through IEC

By 2019: Program for rolling out IEC on SWM designed for Buon Ma Thuot (50% of IEC facilitators are women) Gender-sensitive IEC materials on SWM and disaster risk reduction and management developed and disseminated to project areas Vocational training and credit provided to 1,100 women in subproject areas

Project progress and completion reports Project performance monitoring and evaluation reports

Assumption

Provinces and cities allocate sufficient resources to implement community awareness programs Risk

Gender mainstreaming is inadequately resourced and implemented

3. Improved competencies in integrated urban development, environmental planning, climate change adaptation, and project management

By 2019: Knowledge and skills of at least 30 professional staff (30% of whom are women) strengthened in areas of integrated urban development, environment planning, and climate change adaptation (baseline: 0 in 2012) PMUs trained on project management, economics and finance, procurement, safeguards, gender, and monitoring and reporting

Consultation meetings on climate- resilient master planning policies held (30% of participants are women)

Project progress and completion reports Project performance monitoring and evaluation reports

Assumptions

Staff are in place and available for the capacity development program

The PPCs and CPCs of the project cities support and agree to implement effective coordination and management systems

Risks

Staff are not able to commit fully to the capacity development program due to other assigned tasks

The physical distance separating the participating cities makes coordination challenging Inadequate capacity of implementing agencies

59

Design Summary Performance Targets and Indicators with Baselines

Data Sources and Reporting Mechanisms

Assumptions and Risks

to procure, implement, operate, maintain, and monitor the various subcomponents

Activities with Milestones 1. New and improved urban infrastructure and climate change

adaptation Strengthened flood management and drainage 1.1 Complete detailed design, update of EMPs and resettlement

plans by Q3 2014 1.2 Complete bidding and award civil works contracts by Q1 2015 1.3 Complete land acquisition and resettlement by Q4 2014 1.4 Construct flood management and drainage by Q2 2018 1.5 Perform safeguards monitoring and reporting (continuous) Improved SWM in Buon Ma Thuot 1.6 Complete detailed design, update of EMPs and resettlement

plans by Q3 2014 1.7 Complete bidding and award civil works contracts by Q1 2015 1.8 Complete land acquisition, resettlement by Q1 2015 1.9 Complete landfill development in Hoa Phu landfill by Q4 2017 1.10 Procure landfill equipment by Q1 2017 1.11 Close Cu Eabur landfill by Q2 2018 1.12 Perform safeguards monitoring and reporting (continuous) Strategic roads and related urban environmental improvements 1.13 Complete detailed design, update of EMPs and resettlement

plans, by Q3 2014 1.14 Complete bidding and award civil works contracts by Q1

2015 1.15 Complete land acquisition and resettlement by Q4 2014 1.16 Construct and improve roads by Q2 2018 1.17 Perform safeguards monitoring and reporting (continuous)

2. Increased community awareness for sustainable

environmental management through IEC 2.1 Pilot IEC project on waste segregation fully implemented by

Q4 2017 2.2 Training program in Buon Ma Thuot on how to reduce, reuse,

and recycle conducted by Q4 2018 3. Improved competencies in integrated urban development,

environmental planning, climate change adaptation, and project management 3.1 Capacity development program for integrated urban

environmental planning and improved delivery of urban services, including climate change resilience, implemented by Q1 2018

3.2 Capacity development program to support the executing agencies and implementing agencies on key areas of project management implemented and completed by Q2 2015

Inputs

Item Amount

($ million)

ADB Loan (ADF): $95.00 million

Civil works 64.96

Equipment 1.72

Consulting services 2.06

Project management 3.81

Contingencies 17.98

Interest during construction 4.47

Government of Viet Nam: $26.71 million

Civil works and equipment 3.96

Equipment 0.17

Consulting services 0.08

Project management 0.21

Contingencies 0.08

Land acquisition and resettlement

22.21

ADB = Asian Development Bank; ADF = Asian Development Fund; CPC = city people’s committee; EMP = environmental management plan; H2S = hydrogen sulfides; ha = hectare; IEC = information, education, and communication; km = kilometer; m

3 = cubic meter; mg = milligram; NOx = oxides of nitrogen; PMU = project

management unit; PPC = provincial people’s committee; Q = quarter; SO2 = sulphur dioxide; SWM = solid waste management; TSP = total suspended particulates. Note: Baseline figures were taken from ADB. 2011. Technical Assistance to the Socialist Republic of Viet Nam for Preparing the Secondary Cities Development Project. Manila (TA 7856-VIE). Source: Asian Development Bank.

60

B. Monitoring

106. Project performance monitoring. The PMUs will be responsible for all aspects of monitoring and evaluation, including (i) performance against project milestones; (ii) safeguards monitoring; and (iii) financial commitments and (iv) GAP implementation monitoring. Reports on project achievements will be provided quarterly and summarized annually. 107. Within three months of loan effectiveness the consultants will have presented and the PPCs approved a project performance management system using targets, indicators, assumptions and risks from the design and monitoring (DMF). The PMUs will conduct regular monitoring, using the sane indicators and submit reports on their findings to the ADB and MPI. Results of a comprehensive completion survey will be included in the project completion report.

108. Compliance monitoring. The status of compliance with loan covenants, covering policy, legal, financial economic, environmental and others will be reviewed at each stage ADB review mission. Any non-compliance issues will be specified in the quarterly progress reports together with remedial actions.

1. Safeguards monitoring

a. Resettlement

109. The implementation and effectiveness of the RPs, will be monitored both internally and externally. The EAs are directly responsible for internal monitoring of RP implementation. In particular, the EAs with assistance from the consultants, will supervise and manage monitoring of resettlement activities and implementation arrangements. 110. The EAs will provide quarterly reports to the ADB. They will ensure the EAs the consultants reports include progress and status reports, information on location and numbers of people affected, compensation amounts paid by item, and assistance provided to displaced people. The ADB will also monitor these activities in its regular supervision missions during the period of project implementation. 111. The objectives of the monitoring program are to (i) ensure that the standard of living of affected persons are restored or improved, (ii) monitor whether the overall project and resettlement objectives are being met, (iii) assess if rehabilitation measures and compensation are sufficient, (iv) identify problems and risks, and (v) identify measures to mitigate problems. Consequently the range of activities and issues that need to be recorded and verified, include:

Compensation, allowance payments and delivery of assistance measures; Re-establishment of displaced person settlements and livelihoods; Reaction of displaced persons, to resettlement and compensation packages; and Re-establishment of income levels.

112. The principal indicators for internal monitoring of resettlement activities include:

Timely and complete disbursement of compensation to AHs according to the compensation policy agreed in the RP;

Timely and complete delivery of relocation, income restoration and rehabilitation allowances and measures;

Allocation of replacement land and development of individual and/or group resettlement

61

sites and infrastructure; Public information dissemination and consultation procedures; Adherence to grievance procedures and identification of outstanding issues that require

further attention and resolution; Adequacy of Resettlement Sites; Attention given to the priorities of AHs regarding the options offered; Completion of resettlement activities required before the award of civil works contracts; Participation of poor and vulnerable HH throughout the process; and Restoration and improvement of socioeconomic conditions of AHs;

113. With reference to external monitoring and evaluation, an EM will be recruited and will commence its work prior to the DMS, and will carry out independent bi-annual reviews of the RP to determine whether intended goals are being achieved, and if not, what corrective actions are needed. 114. The EM will submit external monitoring reports to the EAs (and directly to ADB) every six months. Each report will summarize the findings of the EM, including: (i) progress of RP updating and implementation, including any deviations from the provisions of the RP; (ii) identification of problem issues and recommended solutions so that the IAs implementing are informed about the ongoing situation and can resolve problems in a timely manner; (iii) identification of specific issues related to vulnerable displaced peoples, as appropriate; and (iv) a report on progress of the follow-up of issues and problems identified in the previous report. The monitoring reports will be discussed in a meeting between the EM, the EAs, and the PMUs held after submission of the reports. Necessary remedial actions will be taken and documented.

b. Environmental Monitoring

115. The contractors will be required to prepare brief monthly reports on mitigation activities and environmental issues for the PMUs. The PMU with the assistance from the consultants will be responsible to prepare and send quarterly reports on environmental issues and overall performance of the EMP to the EAs. The EAs review and submit to the relevant DONREs. The DONREs at their own discretion will conduct its own inspection of EMP performance (see above).

2. Gender and Social Dimensions Monitoring: 116. Gender and social dimensions not covered under resettlement and indigenous peoples will be monitored internally through the project performance management system. Specific indicators have been presented in the summary poverty reduction and social strategy as well as the GAP. These indicators will be further refined for the monitoring and evaluation framework during the detailed design phase. Gender related outcomes will be reported to ADB as part of regular reporting system. Gender impacts will be reported during MTR and PCR using quantitative and qualitative approach as appropriate.

C. Evaluation

117. The government and ADB will jointly review the project at least twice a year. This includes:

(i) the performance of the EAs, IAs, PMUs, consultants, and contractors; (ii) physical progress of each project component;

62

(iii) effectiveness of capacity development and awareness building programs; (iv) compliance with loan covenants; and (v) assessment of project component sustainability in technical and financial terms. In

addition to the regular reviews, the government and ADB will undertake a comprehensive mid-term review after 2.5 years of project implementation to identify problems and constraints encountered and suggest measures to address them. Specific items to be reviewed will include (i) assessment of need to restructure or reformulate the project, (ii) update of the project’s DMF, and (iii) examination of the need to extend the loan closing date. To ensure the project continues to be viable and sustainable, project accounts and the EAs audited financial statements, together with the associated auditor's report, should be adequately reviewed. EAs will also provide other reports as may reasonably be requested.

118. The government and ADB reporting requirements will be harmonized by the consultants, who will produce detailed reporting formats within one month of project commencement. 119. The PMUs will submit financial reports in the prescribed format to the IAs on a monthly basis. Financial reports will be audited annually by qualified auditors approved by ADB and government, and the audit report, with comments on any action being taken, shall be submitted to the ADB by the EAs annually. 120. Within six months of physical completion of the project the EAs will submit a project completion report to the ADB, detailing, amongst other items, (i) information on project completion; (ii) use of loan proceeds on project components, and (iii) the extent to which the project outcome has been accomplished.

D. Reporting

121. The EAs will provide the ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions; (c) updated procurement plan and (d) updated implementation plan for the following 12 months; and (iii) as above, a project completion report within 6 months of physical completion of the Project. To ensure projects continue to be both viable and sustainable, project accounts, and the EAs, Annual Financial Statements (AFSs), together with the associated auditor's report, should be adequately reviewed. The EAs will also provide other reports as may be reasonably be requested by the ADB, including the project’s environmental reports and resettlement reports bi-annual GAP monitoring report, GAP MTR report and GAP PCR). 122. The government and the ADB reporting requirements will be harmonized by the coordinating PMU and supported by the consultants who will produce detailed reporting formats within one month of project commencement. 123. The PMUs will submit financial reports in the prescribed format to the IAs on a monthly basis. The financial reports will be audited annually by qualified auditors approved by the ADB and government. The audit report, together with the auditor’s comments shall be submitted to the ADB by the EAs on an annual basis.

E. Stakeholder Communication Strategy

1. Introduction and Purpose

63

124. The preparation and adoption of a stakeholder communication strategy (SCS) is required by ADB to ensure inclusiveness, transparency, timeliness, and the meaningful participation of stakeholders in the Secondary Cities Development Project (SCDP).22 The SCS essentially provides an agreed communication platform for all key stakeholders particularly between the project’s affected groups and the executing and implementing agencies to ensure that the former’s views and interests are fully integrated in the project design, implementation and impacts. 125. The SCS promotes select messages targeted at key stakeholders consistent with established communication objectives as to what perspectives, actions and changes should be promoted to ensure the SDCP’s. The SCS ensures that vulnerable groups, such as the poor, elderly, indigenous and ethnic groups and women, who risk being marginalized, are provided with opportunities for communication and feedback during subproject design and implementation. In this way, the Strategy serves to inform and support community development, enhance government agency capacity to manage project outcomes, and enhance project benefits and mitigate negative impacts. Similar to the participation plan, the SCS builds on the data in the stakeholder analysis and summary of consultation and participation (SCP). It complements the participation plan to ensure effective participation of stakeholders in the project. 126. Key stakeholders, who are essential to engage to achieve project objectives and lessen project specific risks and challenges, have been identified. Stakeholders include (i) government agencies responsible for the design, management, and implementation of the project; (ii) utility companies who provide essential in urban infrastructure services and facilities; (iii) community organizations such as the Women’s Union and Farmer’s Union who assist with providing community-level environmental and health sector improvements and employment related opportunities and assistance; and (iv) private sector. 127. The following table outlines key project stakeholders and their interests; and identifies key messages, means of communication, and timeline of delivery during the project cycle. In response to the concerns raised by key stakeholders at the initial consultations, the SCS is designed to address the following communication outcomes in the table below.

2. Stakeholder Analysis 128. The stakeholder analysis presented in the table below was prepared at the beginning of the project preparatory technical assistance. The table summarises the functions of each government agency, civil society and private sector stakeholder, their role and interest in the project, and their perception of the development problems to be addressed by the SCDP subprojects.

22

Meaningful participation is defined as a process that (i) begins early in the project preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues. ADB Safeguard Policy Statement 2009.

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Table 1: Stakeholder and Communications Strategy

Objective Key Risks Challenges

Stakeholder Group

Messages Means of Communication Timeline Responsibility Resources

Ensure a regular flow of project information

Trust of information source.

Language/culture

Literacy.

Managing expectations.

Women.

Affected peoples.

Private sector / businesses. Target Communities / Wards and Communes.

Project design, key project benefits, implementation arrangements, and schedule of civil works.

Main project impacts (positive and negative).

Planned mitigation measures (including compensation rates, entitlements and grievance redress mechanism).

Information and data resource for local profiling.

Workshops, seminars and public meetings.

Resettlement committee meetings and/or meetings with Project APs.

Information in Vietnamese language through: (i) traditional forms, including information booklets/sheets; (ii) local media and public notices; and (iii) recognized web-sites, including Project web-site.

Community preparation and awareness campaign including community-level training and public campaign through media.

Ward and Commune Meetings - Public Meetings,

Resettlement committee meetings and/or meetings with Project APs.

Ongoing prior to implementation of activities.

Project detailed design.

Ongoing during civil works.

EA/IA/PMU/CSOs.

Wards/

Communes and APs.

Cost included in GAP, RP and PPTA.

Establish two-way information sharing/feedback mechanism between Project and Wards, Communes to ensure inclusion of vulnerable groups in benefit distribution

Identifying valid local authorities response.

Timing.

Language/culture.

Grievance Redress Mechanisms ready to respond concerns.

Ward/Commune Committees.

Benefits targeted to females, poor and vulnerable households

Citizen monitoring to assist subproject implementation and adjustment

Ward/Commune – Public Meetings.

Resettlement committee meetings and/or meetings with Project APs.

Gender awareness and mainstreaming training materials

Capacity development training sessions for Ward, Commune leaders and members. Community preparation and awareness campaigns including community-level training and public campaign through media

Early in each phase of subproject preparation.

Project detailed design.

Ongoing during civil works.

EA/IA/PMU/CSOs.

Wards/Communes and APs.

Cost included in RP budget and Project amount.

Ensure a regular flow Trust of

WU. Benefits emphasizing the Project Steering Committees. From outset of EA/IA/PMU/WU

Cost included in the GAP budget

65

Objective Key Risks Challenges

Stakeholder Group

Messages Means of Communication Timeline Responsibility Resources

of project information and training materials

information source.

Language/culture

Literacy Managing Expectations.

role of women.

Assist PMUs and Wards/Communes disseminate information and partake in: (i) environmental upgrading and on hygiene and health to communities in collaboration with Provincial Departments of Health; and (ii) employment opportunity, training and assistance.

Public information and awareness meetings.

Resettlement committee meetings and/or meetings with Project APs.

Gender awareness and mainstreaming training materials.

Capacity development training sessions and materials for WU members.

Information in Vietnamese language through: (i) traditional forms, including information booklets/sheets; (ii) local media and public notices; and (iii) recognized web-sites, including Project web-sites.

Community preparation and awareness campaigns including community-level training and public campaign through media and other communication techniques.

Project preparation

Project detailed design Ongoing during civil works

Wards/Communes and PAPs

Ensure a Regular Flow of Project Information

Trust of information source.

Language/culture

Literacy. Managing Expectations.

Youth Union. Key benefits, risks and mitigation measures of selected sub-components.

Assist PMUs and Wards/Communes disseminate information and partake in environmental upgrading and participation in community tree planting is association with schools, youth and the elderly.

Public information and awareness meetings.

Capacity development training sessions and materials for YU members.

Community preparation and awareness campaigns including community-level training and public campaign through media and other communication techniques.

From outset of Project.

Project detailed design.

Ongoing during civil works

EA/IA/PMU/YU

Wards/Communes and PAPs.

Cost included in GAP and in Project amount.

Ensure a regular flow of project information

Recruitment of qualified personnel. Language/culture

PMUs Application of national and provincial policy context and priorities.

Designing and

Workshops, seminars and public meetings

Resettlement committee meetings

From outset of Project,

Project detailed

EA/IA/PMU/CSO

Wards/Communes and PAPs

PMU Budget and cost included in Project amount.

66

Objective Key Risks Challenges

Stakeholder Group

Messages Means of Communication Timeline Responsibility Resources

implementing the subproject proposals and monitoring program, budgets and procurement on a day to day basis.

Ensuring the needs and aspirations of the urban poor and other vulnerable groups and gender aspects of the subprojects meet the project objectives.

Ensuring the planned mitigation measures (including compensation rates, entitlements, grievance redress mechanism)

and/or meetings with Project APs.

Gender awareness and mainstreaming meetings and training.

Community preparation and awareness campaigns including community-level training and public campaign through media and other communication techniques.

Information in Vietnamese language through: (i) traditional forms, including information booklets/sheets;

(ii) local media and public notices; and (iii) recognized web-sites, including Project web-site.

design,

Ongoing during civil works

Ensure a regular flow of project information

Trust of information source.

Language/culture

Literacy Managing Expectations.

EA (PPCs)

Application of national and provincial policy context and priorities.

Managing the achievement of subproject proposals and monitoring program, budgets and procurement

Ensuring the needs and aspirations of the urban poor and other vulnerable groups and gender aspects of the subprojects meet the project objectives.

Cross-City Project Steering Committee.

Project Steering Committees.

Workshops, seminars and public meetings

Information in Vietnamese language through: (i) traditional forms, including information booklets/sheets; (ii) local media and public notices; and (iii) recognized web-sites, including Project web-site.

From outset of Project.

Project detailed design.

Ongoing during civil works.

EA/IA/PMU/CSO.

Wards and Communes.

Ensure a regular flow of project information

Trust of information source.

Language/culture

Literacy.

Managing

IAs (CPCs.)

Ministries – MPI, MOF, MOC, MONRE and SBV.

Project design, key project benefits, implementation arrangements and schedule of civil works.

Main project impacts (positive and negative).

Project Steering Committees.

Workshops, seminars, public meetings and focus group discussions.

Resettlement committee meetings

From outset of project.

Project detailed design.

Ongoing during

EA/IA/PMU/CSO.

Wards/Communes

Ministries/EA/IA/PMU.

Ministry/departmental budget and other costs included in Project amount.

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Objective Key Risks Challenges

Stakeholder Group

Messages Means of Communication Timeline Responsibility Resources

Expectations.

Ensuring the needs and aspirations of the urban poor and other vulnerable groups and gender aspects of the subprojects.

Ensuring planned mitigation measures (including compensation rates, entitlements, grievance redress mechanism).

Ensuring compliance with Project policy and regulatory context and financial controls and budgets.

Ensuring compliance with national social development policy context, with specific reference to the urban poor/other vulnerable groups and gender mainstreaming.

Ensuring compliance with Project sector policies, standards and guidelines (e.g. climate resilience standards).

and/or meetings with Project APs.

Gender awareness and mainstreaming meetings and training.

Information in Vietnamese language through: (i) traditional forms, including information booklets/sheets;

(ii) local media and public notices; and (iii) recognized web-sites including Project web-site.

Community preparation and awareness campaigns including community-level training and public campaign through media-based public and other communication techniques.

Cross-City Project Steering Committee/Project Steering Committees.

Workshops, seminars and public meetings.

Information in Vietnamese language through: recognized web-sites, including Project web-sites and traditional information techniques as required.

civil works

From outset of project.

Project detailed design.

Ongoing during civil works.

APs = affected persons, CPC = city people’s committee, CSO = civil society organization, EA = executing agency, GAP = gender action plan, IA = implementing agency, MOC = Ministry of Construction, MONRE = Ministry of Natural Resources and Environment, MOF = Ministry of Finance, MPI = Ministry of Planning and Investment, PMU = project management unit (of EA), PPC = provincial people’s committee, PPTA = project preparatory technical assistance, PAP = project affected persons, RP = resettlement plan, SBV = State Bank of Viet Nam, WU = Women’s Union of Viet Nam, YU = Youth Union of Viet Nam. Source: Asian Development Bank.

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Table 2: Stakeholder Analysis Stakeholder Group Stakeholder Interest Perceived Problem Resources Mandate

Civil Society

Women in the subproject areas

Women’s inclusion in project design and implementation, training, education and awareness, and to have a fair share of project benefits including employment, training, project management and business development.

Women note unequal burden arising from poor environmental sanitation; lack of good roads; limited access to health services, jobs and education; information and training and participation in community decision-making.

Individuals and family funds and assets

Represent individual and community needs

Poor and vulnerable groups – HHs living on $.80 per capita a day

Project benefits including flood protection, employment and livelihood opportunities, training, credit access, access to markets, compensation package and improved urban living conditions.

Poor note the lack of flood protection and proper drainage system is the cause of regular flooding in low lying areas reducing farm land quality, productivity and incomes. Lack of training in business management to make businesses viable; lack of funds and need for micro-credit program.

State family assistance, donations and own funds.

Represent own needs.

CSOs – WU, YU and FU: Government funded mass organizations with city and provincial level offices

WU – mobilization and collaboration of women for inclusion in project design, awareness and development benefits. FU – mobilization of farmers’ interest to eradicate flooding, improve quality of agricultural land and increase farmers productivity and income. YU - mobilization of youth and advocacy for their inclusion in project benefits.

Lack of quality urban roads, flood protection and drainage, and SWM are contributing to poverty, poor living standards, and lack of economic opportunities. Regular flooding is inconvenient and contributing to poor soil quality, low productivity and income losses.

FU, WU, and YU are Government funded.

WU - mobilizes women in community and social development FU – mobilises farmers in lobbying and coordinating their collective voice and interest. YU – youth advocacy and collaboration.

Ethnic groups Project impact on their land, loss of jobs at current dumpsite, loss of agricultural land and proper resettlement and compensation of victims, and preservation of traditional structures.

Potential loss of jobs, loss of land through relocation and resettlement is fairly compensated.

Own funds. Ethnic leadership and individuals represent own needs.

Landowners Compensation package for loss of land, relocation and resettlement – over 100 HHs to be resettled.

Concerned with landowners displacement and need for fair compensation and proper resettlement.

Own funds. Represent own needs.

Government

Ministry of Finance

Recipient of ADB loan, negotiates and signs loan agreements and responsible for disbursements and payments

Project funding has to be on acceptable terms and loan will require proper prioritization, design, and loan due diligence, negotiation and approval.

ADB loan ($83.07 million) Manage and oversee Government budget and ODA funding of capital projects

Ministry of Planning and Investment

Project will develop priority urban and environmental infrastructure in three cities and support implementation of program for development of secondary cities under Vietnam’s Socio-Economic Development Plan and

Growth of secondary cities to become economic hubs with improved living conditions is constrained by lack of urban infrastructure and limited resources, low capacity etc.

Ministry budget and staff Coordinate national development plans and its implementation

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Stakeholder Group Stakeholder Interest Perceived Problem Resources Mandate

Adjustment of Master Plan for Development of Urban Systems in Vietnam to 2025.

Ministry of Construction

Responsible for urban sector policy and technical standards and approval of major investment projects – policy guidance and technical standards for the project.

Appropriate urban infrastructures are designed and build to required standards.

Ministry budget and staff Oversee urban development and construction standards

Ministry of Transport

Coordinates national transport sector planning and implementation of road projects

Roads are inadequate to support the three cities growth and need to be expanded and upgraded to standards to match growing urbanisation and spur investment and economic growth.

Ministry budget and staff Oversee transport development’.

Ministry of Natural Resources and Environment

Responsible for national environmental policy and protection, and state coordination of SWM – approval of environmental impact assessment where necessary; climate change adaptation.

Pollution, climate change and flooding mitigation are necessary and infrastructure investments in flood protection and drainage and SWM are necessary solutions.

Ministry budget and staff Oversee environmental development and compliance

VIAP Provide physical master plans for the physical development of cities, including infrastructure.

New investments in urban infrastructure have to be done in a coordinated fashion compliant with city master plans.

VIAP budget and staff Oversee cities master planning and implementation.

Provincial State Agencies

PPC

Exercise executive authority over all provincial functions including urban infrastructure development in coordination with line ministries and other government agencies. Promote provincial development through secondary cities development.

Infrastructure is lacking and must be developed to support the growth of secondary cities as economic hubs and curb regional economic disparities.

PPC Budget and staff. Executive authority over provincial functions and development.

DOC Responsible for advising PPC and giving approval of feasibility studies, technical designs and urban master plans

The design of subproject components meets technical standards and complies with master plans.

DOC budget and staff. Authority on approval of construction projects.

DOT Responsible for advising PPC and coordinating transport policy and investment projects.

The design of roads complies with transport master plans and meets technical standards.

DOT budget and staff. Authority on approval of transport projects.

DPI Advises PPC and coordinates regional economic development plans

The project complies with the policy and investment priorities of Government.

DPI budget and staff. Coordinate regional economic development planning.

DOF Coordinates provincial finances, project feasibility study, budget formulation and disbursement of ODA funds

Have to ensure proper supervision and accountabilities of city finances and disbursements including ADB loan funds.

ADB loan and DOF budget and staff.

Responsible for provincial budget formulation.

DONRE Monitoring of environmental policy and protection in the provinces and approving environmental clearances.

Subprojects need to get environmental approvals and be compliant.

DNRE budget and staff. Authority for environmental approvals.

DARD Responsible for planning, licensing, and investment and maintenance of dykes.

Dykes construction in the subproject areas is necessary but will need to meet licensing requirements and is properly budgeted for

DARD budget and staff. Authority on dykes development and maintenance.

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Stakeholder Group Stakeholder Interest Perceived Problem Resources Mandate

maintenance.

DAKURENCO – Dak Lak/ URENCO– Ha Tinh

Responsible for management, operation and maintenance of new subprojects in Dak Lak and Ha Tinh Provinces.

Important that the subprojects are properly designed, built to standards and supported by adequate maintenance capacity and budget.

DAKURENCO and URENCO budget, profits and staff.

Authority on management and maintenance of Dak Lak state assets.

MARD/DARD – Quang Nam

Will take over ownership of dykes. Important that the subprojects are properly designed, built to standards and supported by adequate maintenance capacity and budget.

MARD/DARD budget and staff.

Authority on management and maintenance of dykes.

Project Construction Investment Management Authority (PCI) - Quang Nam.

Coordinate planning and implementation of major investment projects in Quang Nam Province.

ADB loan projects funding procedure is complex and cumbersome and will place demand and pressure on resources in terms of voluminous documentation and reporting.

PCI Budget and ADB subproject loan for Tam Ky.

Authority for planning and implementing province’s projects.

City State Agencies

CPC Responsible for administration of cities and implementation of the subprojects in the three cities.

Growing infrastructure needs of the three cities to develop as modern economic hubs and improve urban living standards.

ADB loan, CPC budget and staff.

State agency for cities administration.

UMD Subprojects alignment with the cities master plans and will manage cities urban infrastructure and land development services in partnership with service providers such as URENCO.

Ensure subprojects meet the cities investment priorities, urban master plans and quality assurance.

ADB loan and UMD budget and staff

Authority at city level of managing urban infrastructure investments and urban master planning.

Division for Natural Resources and Environment.

Advises CPC on environmental management and protection and to make sure subprojects are compliant.

Environmental and climate change adaptation and subprojects need to be environmentally compliant.

Division’s budget and staff.

Authority on environment.

Finance and Planning Division.

Coordinates city budgets and finances and will oversee subproject’s ADB financing arrangements and disbursements.

Capacity to meet ADB’s accounting and financial management requirements

ADB loan and division’s budget and staff.

Authority on cities financial management.

Cities PMU

Prepares and implements infrastructure and construction projects in the cities including ADB projects – will sign contracts and management supplies and procurement.

ADB funding has enabled the subprojects to be implemented but will require compliance with ADB policies and complex procedures, documentation and standards.

ADB loan and PMU budget and staff.

Agency for implementing ADB projects.

Management Board of Cities – Tam Ky.

Complements URENCO in managing Tam Ky city infrastructure and urban services and will take over the Tam Ky subprojects.

Will take over the Tam Ky subprojects and concerned with project quality and budget for adequate future maintenance.

Board’s budget and staff. Agency for management and operation of Tam Ky urban services.

Wards and Communes.

Reports to CPC and provides interface between the communities and the Project on awareness, governance and socioeconomic development impacts on the communities.

Project information needs proper dissemination for local community awareness and inclusive participation.

State funding and staff. Agency for local engagement and advocacy.

Private Sector

Local micro-enterprises and

Small business owners will be impacted by the project (13 directly affected) leading to loss of

Interruption and or security of livelihoods may affect some businesses.

Business profits and staff.

Run a profitable and sustainable business.

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Stakeholder Group Stakeholder Interest Perceived Problem Resources Mandate

small medium enterprises

incomes. Others are interested in new business opportunities during and after construction.

Local and international contractors.

Local and international contractors are interested in tendering for implementation of various subproject components.

ADB tender process is complex and subject to firms’ ability to respond.

Business profits and staff.

Run profitable businesses.

ADB = Asian Development Bank, CPC = city people’s committee, CSO = civil society organisation, DARD = Department of Agriculture and Rural Development, DOC = Department of Construction, DOF = Department of Finance, DONRE = Department of Natural Resources and Environment, DPI = Department of Planning and Investment, DOT = Department of Transport, EA = executing agency, FU = Farmers Union of Viet Nam, GAP = gender action plan, HH = household, IA = implementing agency, ODA = official development assistance, MARD = Ministry of Agriculture and Rural Development, PPC = provincial people’s committee, PMU = project management unit (of EA), PPTA = project preparatory technical assistance, PAP = project affected persons, RP = resettlement plan, SBV = State Bank of Viet Nam, SWM = solid waste management, VIAP = Viet Nam Institute of Architecture, and Urban and Rural Planning, UMD = Urban Management Division, URENCO = urban environmental company, WU = Women’s Union of Viet Nam, YU = Youth Union of Viet Nam. Source: Asian Development Bank.

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X. ANTICORRUPTION POLICY 129. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the project.23 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the EA and all Project contractors, suppliers, consultants and other service providers. Individuals/entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the project.24 130. To support these efforts, relevant provisions are included in the loan agreement or regulations and the bidding documents for the project. In particular, all contracts financed by ADB in connection with the project will include provisions specifying the right of the ADB to audit and examine the records and accounts of the EAs and all contractors, suppliers, consultants, and other service providers as they relate to the project. 131. Full information disclosure and participatory monitoring at both central and local levels are expected to be effective in reducing the risk of corruption and improving governance at central and local levels. 132. The EAs will prepare a grievance redress mechanism, acceptable to ADB, and ensure that there is an appointed officer, with the requisite capacity, in each PMU to receive, resolve or act upon, both independently and expeditiously, complaints or grievances or reports from stakeholders on mis-use of funds and other irregularities relating to the project or the specific project components, including but not limited to grievances due to resettlement. Each PMU will inform stakeholders of their right to submit complaints or grievances relating to the project. 133. Project-specific measures to enhance governance and prevent corruption, designed with the stages of project implementation and the disbursement chain in mind, include (i) the requirement for the EAs and the PMUs to follow government rules and procedures for all expense and revenue items including cash and the proper and accurate maintenance of financial records and (ii) establishing a project website at EAs level to provide transparency on project details including procurement.

23

Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 24

ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp

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XI. ACCOUNTABILITY MECHANISM 134. People who are, or may in the future be adversely affected by the project may submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make a good faith effort to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.25

25

For further information see: http://www.adb.org/Accountability-Mechanism/default.asp.

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XII. RECORD OF PAM CHANGES 135. The PAM will be subject to change after ADB Board approval of the project and during the period of project implementation. All revisions and updates of the PAM made should be recorded in this section to provide a chronological history of the changes to the implementation arrangements recorded in PAM. 136. This 1st draft of PAM has been prepared and agreed upon during the ADB loan fact-finding in May 2013. 137. The PAM has been revised and agreed upon during loan negotiations from 19 to 21 August 2013.