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.
Project Cost 169.00
Responsible ADB Division
Viet Nam Resident Mission
Bac Giang Water Supply and Sewerage One Mem Ltd Co
No. 386 Xuong Giang Street,
Bac Giang City, Bac Giang province
Cua Lo Water Supply One Member Limited Company
Nghi Tan Ward,Cua Lo Town, Nghe An Province
Nghe An Water Supply One Member Limited Company
No. 32 Phan Dang Luu,
Vinh City, Nghe An Province
Quang Nam Wter Supply&Drainage Joint Stock Company
Lot 6, Phan Boi Chau Str,
Tam Ky city, Quang Nam province
Song Chu One Member Limited Company
24 Pham Banh, Ngoc Trao Ward,
Thanh Hoa City, Thanh Hoa Province
Thai Hoa Water Supply One Member Limited Company
Lien Thang, Hoa Hieu ward,
Thai Hoa Town, ,Nghe An Province
Thai Nguyen Water Joint Stock Company
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