The objective of the Additional Financing for the Northern Delta Transport Development Project for Vietnam is to enhance the efficiency, environmental sustainability and safety of transport infrastructure and services, through the alleviation of physical and institutional bottlenecks, in two major waterway corridors in the Northern Delta Region. The additional credit will be used solely to help finance an activity that has always been part of the project scope since inception, construction of a canal to connect two rivers with a navigational lock, known as the Day-Ninh Co interconnecting canal (‘DNC canal’), but for which there are insufficient funds remaining in the original credit due to cost overruns incurred during project implementation. This additional financing (AF) operation will also restructure the (parent project) by removing a small activity, originally estimated at US$1 million, less than 1 percent of the value of the original credit, for the implementation of a pilot waterway maintenance contract, as there is insufficient time remaining in the project period, including over the duration of the additional credit, to adequately implement a performance-based contract as originally intended. In addition, the Project Results Framework will be expanded to include performance indicators specifically focused on the DNC canal. It is expected that construction of the canal will further contribute to achieving the project development objective by reducing transport and logistics costs, including the cost of environmental externalities, along a major waterway corridor in the Red River Delta region. The proposed additional credit will be used solely to help finance an activity that has always been part of the project scope since inception—construction of a canal to connect two rivers with a navigational lock, known as the Day-Ninh Co interconnecting canal (“DNC canal”)—but for which there are insufficient funds remaining in the original credit due to cost overruns incurred during project implementation. The scope of civil works comprises: (a) construction of a new navigation canal to connect the Day and Ninh Co rivers, approximately 1.5 kilometers long, 6.0 meters deep, and inclusive of flood protection dikes; (b) construction of a 160-meter navigational lock for low loaded rivercoastal vessels up to 3,000 DWT in capacity to facilitate passage from the Ninh Co to the Day river—and on to Ninh Phuc port—and associated return trips; (c) construction of the Day - Ninh Co fixed-span bridge over the canal, 780 meters in length and with a 15-meter vertical clearance, to preserve continuous traffic along Provincial Road No. 490C between the two sides of the crossing canal and to allow sufficient vertical clearance for the passage of seagoing vessels; (d) construction of an approximately 1.2-kilometer long (12-meter wide) approach road to the bridge; and (e) replacement of facilities impacted by canal construction works (e.g., electricity and telecommunication poles, irrigation canals, and the like), and complementary landscape and environmental works. This scope of works is consistent with what was originally intended at parent project appraisal.

BORROWER/RECIPIENT - Government of Vietnam US$ 28.45 million International Development Association (IDA) US$ 78.74 million Total US$ 107.19 million

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