Water Sector Investment Program - Tranche 3 (ADB-41456-043)

Countries
  • Vietnam
Where the impacts of the investment may be experienced.
Specific Location
Bac Giang, Cua Lo, Quang Nam, Thai Hoa, Thanh Hoa, Thanh Pho Thai Nguyen, Vinh
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Mar 27, 2015
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Government of Vietnam
The holder of the loan, grant, or other investment.
Sectors
  • Infrastructure
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 142.50 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 169.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Nov 8, 2017

Disclosed by Bank Sep 30, 2016


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Project Description
In November 2014, Asian Development Bank (ADB) received the State Bank of Vietnam's periodic financing request letter for project 3 requesting $142.5 million to finance seven water companies (WSCs) having completed their project preparation and initiated advance action under project 2. The investments would improve water services for 1.2 million persons, including 17,500 poor households with their own piped water connection for the first time. Project 3 outputs will support the multitranche financing facility (MFF) outputs: (i) increased coverage; (ii) improved business planning, financial management, and asset management; and (iii) effective nonrevenue water reduction for seven WSCs for the following: Bac Giang City, Cua Lo Town, Nghi Son Economic Zone, Tam Hiep-Dien Nam, Dien Ngoc Towns, Thai Hoa Town, Thai Nguyen City and Vinh City in four provinces. Special features of project 3 include (i) promoting technical and financial sustainability by enforcing water tariff increase to full-cost recovery, while reducing subsidies and meeting targets of selected key performance indicators; (ii) providing access to finance for second-ranked WSCs willing to secure their debt through water tariff increase, resulting in greater access to safe water for the poor; and (iii) promotion of engineering, procurement, and construction (EPC) contracts. The Ministry of Planning and Investment (MPI), coordinating agency for the MFF, is responsible for (i) selecting WSCs that can access the MFF, and (ii) consolidating reports with the assistance of the WSCs. Under project 3, the project management is delegated to the WSCs, and the provincial people committees (PPCs) are the executing agencies. Each WSC has set up a project management unit (PMU) in its organizational structure under project 2. The PMU organizes the procurement of consulting services and works. The MPI has no role in procurement. Project 3 is structured with one loan to the government. The Ministry of Finance will sign seven subsidiary loan agreements with the participating WSCs with a letter of guarantee from the respective PPC, after the loan signing. Each WSC, acting as implementing agency, will implement its procurement plan separately. The MPI will consolidate the reporting with assistance of the WSCs. The project performance management information system was set-up under project 1 and applies to all subsequent tranches.
Investment Description
  • Asian Development Bank (ADB)
Financing Plan Project Cost 169.00 ADB 142.50 Counterpart 26.50 Cofinancing 0.00
Contact Information
Responsible ADB Division Viet Nam Resident Mission Executing Agencies Bac Giang Water Supply and Sewerage One Mem Ltd Co TRANDIEUBG@GMAIL.COM No. 386 Xuong Giang Street, Bac Giang City, Bac Giang province Cua Lo Water Supply One Member Limited Company CONGTYCAPNUOCCUALO@YAHOO.COM Nghi Tan Ward,Cua Lo Town, Nghe An Province Nghe An Water Supply One Member Limited Company THAO.NAWSCO@GMAIL.COM.VN No. 32 Phan Dang Luu, Vinh City, Nghe An Province Quang Nam Wter Supply&Drainage Joint Stock Company TCTNQNAM@GMAIL.COM Lot 6, Phan Boi Chau Str, Tam Ky city, Quang Nam province Song Chu One Member Limited Company THUYSONGCHU@GMAIL.COM 24 Pham Banh, Ngoc Trao Ward, Thanh Hoa City, Thanh Hoa Province Thai Hoa Water Supply One Member Limited Company CAPNUOCTHNA2010@GMAIL.COM Lien Thang, Hoa Hieu ward, Thai Hoa Town, ,Nghe An Province Thai Nguyen Water Joint Stock Company DUONGTHAISON73@GMAIL.COM Ben Oanh Street, Trung Vuong ward, Thai Nguyen City, Thai Nguyen Province ACCOUNTABILITY MECHANISM OF ADB The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main