wb-ho chi minh city environmental sanitation-addition

Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document o f The World Bank FOR OFFICIAL USE ONLY Report No 52664-VN PROJECT PAPER ON A PROPOSED ADDITIONAL CREDIT IN THE AMOUNT OF SDR 58 MILLION (US$90.00 MILLION EQUIVALENT) TO THE SOCIALIST REPUBLIC OF VIETNAM FOR THE HO CHI MINH CITY ENVIRONMENTAL SANITATION (NHIEU LOC-THI NGHE BASIN) PROJECT March 11,2010 Vietnam Sustainable Development Unit East Asia and the Pacific Region This document has a restricted distribution and may be used by recipients only in the performance o f their official duties Its contents may not otherwise be disclosed without the World Bank authorization CURRENCY EQUIVALENTS (Exchange Rate Effective January 1,201 0) Currency Unit = Vietnam Dong (VND) VND 18,474 = US$1 US$1.55419 = SDR FISCAL YEAR January - December ABBREVIATIONS AND ACRONYMS AF Additional Financing cso Combined Storm Water Overflow CUP Community Upgrading Plans EA Environmental Assessment EMF Environmental Management Framework FM Financial Management FCC Flood Control Center HCMC Ho Chi Minh City ISR Implementation Status Report IDA International Development Association MOC Ministry o f Construction MOF Ministry o f Finance PC Peoples Committee PMU Project Management Unit RP Resettlement Plan VDIC Vietnam Development Information Center Vice President: Country Director: Sector Director: Sector Manager: Task Team Leader: James W Adams Victoria Kwakwa John Roome Hoonae Kim Dean Cira FOR OFFICIAL USE ONLY VIETNAM H O C H I MINH CITY ENVIRONMENTAL SANITATION (NHIEU LOC NGHE BASIN) PROJECT THI ADDITIONAL FINANCING CONTENTS I I1 I11 I V Project Paper Data Sheet Introduction Background and Rationale for Additional Financing Proposed Changes Appraisal Summary 2 Annexes: Annex 1: Results Matrix 13 Annex 2: Financial Management and Disbursement 15 Annex 4: Summary o f ISR Ratings 22 Annex 3: Procurement 16 Annex 5: Project Description 23 This document has a restricted distribution and may be used by recipients only in the performance o f their official duties I t s contents may not be otherwise disclosed without W o r l d Bank authorization Project Paper D a t a Sheet Team Leader: Dean A Cira Country: Vietnam Sector Directorhlanager: John Roome/ Hoonae Kim Project Name: Ho Chi Minh City Environmental Sanitation (Nhieu LOC Thi Country Director: Victoria Kwakwa Environmental Category: A Nghe Basin) Project Original Project ID: PO52037 Date: March 11, 2010 Borrower: Socialist Republic o f Vietnam Responsible agency: Project Management Unit, Department o f Transport, H o Chi Minh Citv Peode’s Committee Revised estimated disbursements (Bank FY/US$m) (Original project T AF) - Current closing date: June 30, 2010 Revised project development objectives/outcomes: Not Applicable d Does the project trigger any new s For Additional Financing [ Loan [ XI Credit [ ] Grant For Loans/Credits/Grants: Total Bank financing (US$m.): $90.0 (equivalent) Proposed terms: Standard IDA Credit terms with total maturity o f thirty-five years including a grace period o f 10 years Financing Plan (US$m.) (AF) Source Total Borrower/Recipient IBRD IDA -New 90.00 -Recommitted Others 90.00 Total Financing Plan (US$m (Original project + AF) Total Source Borrower/Recipient 28.00 IBRD IDA 289.00 - P -New -Recommitted I Introduction This Project Paper seeks the approval o f the Executive Directors to provide an additional credit in an amount o f SDR 58 million (US$90.00 million equivalent) to the Socialist Republic o f Vietnam for the H o Chi Minh City Environmental Sanitation Project (P052037; CR3475-VN) The Project Paper also seeks the approval o f the Executive Directors to grant a waiver to the eligibility requirements under paragraph 1.8(c) o f the Procurement Guidelines to allow for the credit to finance a contract to be awarded to the Sai Gon Water Corporation (SAWACO) to complete the sensitive and critical temporary bypass and relocation o f a two meter diameter water main The estimated cost o f the proposed contract, which i s to be awarded by Direct Contracting, i s US$2.5 million SAWACO i s a state-owned enterprise that i s legally and financially autonomous and operates under commercial law However, it i s a dependent enterprise o f the Ho Chi Minh City People’s Committee, and as such, does not meet the third eligibility criterion under Paragraph 1.8 (c) o f the Procurement Guidelines The waiver request was endorsed by the Managing Director on February 10,201 The use o f Direct Contracting for the award o f this contract has already been cleared by the Bank’s Operations Procurement Review Committee The additional IDA Credit would bridge a financing gap resulting from a combination o f slow implementation during the project’s early years and the high inflationary period o f 2007-08 In addition, an extension o f the closing date to December 1, 201 i s required so that all outstanding works can be completed and allow for the Project Objectives to be met During the period o f 2007 and 2008, particularly, world prices for construction materials increased markedly and Vietnam suffered a period o f particularly high inflation o f such key Construction inputs as steel, cement and labor The revised cost to complete the project i s consequently estimated at U$317 million compared to the original cost estimate o f approximately US$200 million at the time o f the original Project appraisal in 2001 To achieve the Project Objectives, therefore, an additional US$90.0 million equivalent o f IDA credit i s required O f this, US$5.5 million o f the additional financing i s required for the continued construction management and institutional strengthening consultancies, another US$29.0 million i s required for the Wastewater Collection Component, and US$55.5 million i s required to complete the Drainage Component 11 Background and Rationale for Additional Financing Original Project Objectives and Subsequent Changes The original Credit, in the amount o f SDR 127.5 million (equivalent to US$166 million in 2001) was approved by the Board on March 20, 2001 and became effective on February 3, 2002 The original closing date was December 31, 2007 The Project closing date was subsequently extended to December 31, 2009 and then again to June 30, 2010 to allow time for full processing, signing and effectiveness o f the additional financing The Project’s original development objectives were to (i)achieve sustainable improvements to the public health, particularly o f H o Chi Minh City’s urban poor population, and (ii) increase economic development in the commercial center o f the City These objectives were revised through a project restructuring approved by the Board in April 2009 This change was made to better align the objectives with the expected and measurable impacts o f the Project The revised PDO i s to reduce the incidence o f flooding and increase the collection o f wastewater in the Nhieu Loc-Thi Nghe (NLTN) Basin in HCMC, in an environmentally and financially sustainable manner The project i s designed to reduce wastewater pollution and the occurrence o f flooding in the area surrounding the Nhieu Loc-Thi Nghe (NLTN) basin and to develop a more efficient institution to manage drainage and wastewater services in H o Chi Minh City Located in the central business districts o f the city, the Project comprises a hydraulically integrated system with 65 km o f combined primary and secondary sewers and about 270 km o f tertiary sewers mainly connecting poor households, which feeds into an approximately 8.4 km long, large diameter, interceptor which runs under the NLTN canal This interceptor delivers effluents to a pumping station, which transfers flows to a temporary discharge point into the middle o f the Saigon River The effluents will be transferred to a wastewater treatment plant in the future 10 In parallel, the Project finances dredging, transportation and safe disposal o f more than million cubic meters o f sludge from the canal along with improvements to 18 km o f canal embankments The Project also provides technical assistance in project design and construction supervision as well as capacity building for the implementing agency and H C M C Flood Control Center When completed, the project will bring direct benefits in the way o f reduced flooding and wastewater collection and i t s safe disposition to over 240,000 households It will also serve as a transformational urban project in the city center by turning an open sewer into an important development asset Status o Implementation f 11 Implementation o f the project had been slow and at the time o f the original closing date o f December 1, 2007 was only about 37 percent ,disbursed However, implementation has picked up as evidenced by the significant progress made in the past year Overall the project i s now over 70 percent completed Initial delays can be attributed to several factors First, the project took approximately one year to reach effectiveness This slow start was compounded by delays in the approval o f bidding documents by the city authorities who were unfamiliar with the engineering technology and with Bank I C B procurement procedures In addition, the project i s located in the most densely populated central business district o f the city with critical traffic management issues, which has led to a limitation on the hours (night primarily) o f construction and o f the number o f work sites that can be opened at any given time The works progress i s also often affected by difficult removal o f existing underground utilities (i.e., water pipes, power and telecommunication cables) 12 As a result o f these delays, the Project’s original closing date o f December 31,2007, was extended to December 1, 2009, by Bank management in a two stage process (a first extension o f months, and subsequently a second extension o f 18 months) The second extension was conditioned on the implementing entity demonstrating solid progress against a set o f agreed implementationindicators, which was largely achieved The closing date was further extended to June 30,20 10, in order to process the additional financing request as a temporary measure before the final closing extension to December 1, 20 11 which i s required to complete the works 13 Currently there are three major factors which are impacting project implementation First, the Saigon River crossing section o f the interceptor was abandoned by the original contractor after encountering technical difficulties with the soil conditions It was agreed that this work would be undertaken by a third party and that process i s now on-going and expected to be completed in September 2010 Second, in order to complete the final section o f the interceptor under the canal there i s the need for the relocation o f a two-meter diameter water main that crosses the canal As this i s the only water supply pipe for about 4.0 million people, it has taken longer than anticipated for the water company to agree on a methods statement for this diversion However, this work i s now advancing with the fabrication o f the diversion pipe and i s expected to be completed by November 20 10 14 Third, there have been capacity issues with the contractor responsible for the largest contract (Package No 10) which has performed below expectations, although improvements in the dredging and piling have increased and the work i s now considered to be about 70 percent complete This i s the largest contract under the Project The contract was terminated at the end o f February 2010, under the agreed contract extension entitlements The main canal improvement works are completed but there s t i l l remain some unfinished work on the contract This includes remaining work o f soils improvement, dredging, canal interface with walls and bridges and final canal landscaping, totaling about US$21 million I t i s the expectation that the unfinished work in this contract w i l l be completed by other contractors In order to allow for this, an extension o f the closing date to December 1, 20 11, i s required Contract (Package No.) Interceptor, CSOs and Outfall (Package No 7) CSOs, Open Cut pipes and Manholes (Package No 7A) Pumping Station (Package No 8) Rehabilitation o f TLTN Canal (Package No 10) Extension and Replacement o f Level 2&3 Sewers Contractor JV o f TMEC-CHEC JV o f Construction Technology Development Joint Stock Company-Hung Vuong CC Ltd JV o f Rotem - Hyundai Corporation, S m b o Tosfoc-Cofico China State Construction Engineering Corporation Various Contractors Percent Complete 96% 45% 98% 64% 78% Progress in Meeting Project Objectives 15 As indicated, the PDO and monitoring indicators were revised (in FY 2009) through a Board approved restructuring to better align the project activities and better measure the overall impact and outcomes o f the project, which are now easier to monitor and evaluate Thus, the objective remains highly relevant and despite delays in implementation the project i s expected to achieve i t s objectives By project completion, a total o f approximately 8.4 kilometers o f wastewater interceptor and canal improvements (banks and dredging and landscaping) and combined primary and secondary sewers will be constructed This will result in direct benefits to 96,000 households in reduced flooding over a two year storm return period; 240,000 households benefitting from collection and safe disposition o f wastewater; improved water quality o f the NLTN canal as a result o f higher level o f dissolved oxygen; and improved financial sustainability o f wastewater investments through gradual tariff increases In addition, the project i s located in the central business district o f HCMC, and thus there will be spillover economic benefits from reduced flooding and improved environmental conditions Compliance with Covenants 16 The project i s in compliance with all covenants In addition, financial management i s satisfactory and there are no overdue or qualified audit reports Procurement i s also moderately satisfactory In addition, safeguards compliance has been rated satisfactory for all relevant policies and there have been no reports o f non-compliance with independent monitoring o f safeguards compliance confirming this Per the legal covenants, the Borrower has established wastewater tariffs aimed at covering operations and maintenance costs However, inflation has resulted in full cost recovery not yet being achieved A tariff strategy i s in place to reach the goal o f full O & M cost recovery by 2015 and full economic recovery by 2020 Rationale for Additional Financing 17 The additional financing would be used,to complete the project as designed to cover an unanticipated financing gap, the result o f cost over runs N o new or scale-up activities will be financed 18 At the time o f Project appraisal in 2001, the Project cost was estimated to be about US$200 million to complete O f this amount, an IDA Credit o f SDR 127,500,000 (US$166 million equivalent in 200 1) was made available to the Government o f Vietnam for the Project This financing was expected to be sufficient to complete the project by the original closing date o f December 1, 2007 However, delays accumulated in the Project implementation as has been indicated An unanticipated result o f the delays in the Project implementation has been the sharp increase in the overall cost o f the Project due to the high inflationary period o f 2007-08 The revised cost to complete the project i s estimated at U$317 million The canal improvements, drainage and wastewater collection component o f the project are an integrated set o f works I t i s imperative to complete the entire scope o f works to achieve the project objectives The city authorities not have sufficient resources to complete the works without the additional financing There are no technical alternatives available than to complete the project as designed, and which i s now over 70 percent completed Outcome Indicators I Targt Values Base Line t i (CY 2007) L- CY2009 CY2011 96,000 240,000 return p' Increase in the number o f households Nr At least 250 350 450 Base Line CY2009 CY2011 8.4 50 The target values are based on calibrated hydraulic models prepared as part o f the Feasibility Study which estimate that about 40% o f total areas (and approximately 40% o f total households) in the NLTN basin will benefit from reduced flooding by two-year return storm after the project completion In addition, field measurements o f depth and frequency o f flooding in key points in the NLTN basin to be conducted to illustrate trends during implementation stage The indicator includes 1) the number o f households whose wastewater i s already connected to sewers but disposed of unsafely and 2) the number of households whose wastewater will be newly connected to sewers and disposed o f safely The baseline number o f households which achieve both indicators (collected and disposed o f safely) i s zero Projected beneficiaries are about 1.2 million inhabitants in the area surrounding the NLTN canal and 240,000 households with average persons per household The actual number o f households with new connection and improved disposal to be provided in the Project Progress Report by the PMU Baseline i s the dissolved oxygen (DO) level in dry season, measured at 4-5 monitoring stations along the canal, expressed as a weighted average based on distance between stations Projection based upon the assessment o f estimated saturation DO achieved along the canal Ex-post measurement o f water quality to be conducted at the selected monitoring stations along the canal and to be provided in the Project Progress Report by the PMU Tariff projections based on financial models prepared by financial consultants Ex-post figures to be provided by external audit reports on the financial statement o f the wastewater utility and to be included in the Project Progress Report 8.4 Measurement 65 (CY2007) Measurement Baseline and target value for each indicator are determined in line with up-to-date and planned construction activities 12 18 000 650,000 1,029,OO 14 Annex 2: Financial Management and Disbursement Introduction VIETNAM: H o Chi Minh City Environmental Sanitation (Nhieu Loc-Thi Nghe Basin) Project The Bank has conducted an assessment o f the adequacy o f the financial management system o f the proposed additional US$90 million equivalent credit for the Ho Chi Minh City Environmental Sanitation Project The financial management arrangement o f the existing project was previously assessed and deemed acceptable in 200 The assessment for the additional financing, based on guidelines issued by the Financial Management Sector Board on November , 2005, has concluded that the project meets the minimum Bank financial management requirements, as stipulated in BP/OP 10.02 In the Bank’s opinion, the project will continue to have acceptable financial management arrangements in place for implementing the operation and providing reasonable assurance that the proceeds o f the credit will be used for the purposes for which the credit was given Financial management risk i s the risk that World Bank loadgrant proceeds will not be used for the purposes intended and i s a combination o f country, sector and project specific risk factors The FM risk rating proposed for this project i s moderate N o outstanding audits or significant audit issues exist with the existing PMU, who will continue to be responsible for the proposed additional financing The audit opinion on the Project financial statements for the year ended December 2008 was unqualified Project-related management has strongly committed to address the auditors recommendations to strengthen internal control Audit Arrangements The Bank’s audit requirement will not change due to the additional financing The additional financing will be included in the project financial statements The existing P M U will appoint independent auditors acceptable to IDA Project accounts will be audited on an annual basis in accordance with international auditing standards and in compliance with the independent auditing regulations o f Vietnam The annual audit report o f the project financial statements will remain the same and continue to be due to the Bank within months after the end o f each calendar year as stipulated in the Development Credit Agreement Disbursement Ratings Disbursement methods: advance, reimbursement, direct payments and special commitments will continue to be available for the additional financing credit The additional financing proceeds will continue to use the existing DA opened under existing PMU Replenishment applications will be submitted in accordance with Disbursement Letter issued b y the Bank A full FM assessment i s in the Project File 15 Annex 3: Procurement VIETNAM: H o Chi Minh City EnvironmentalSanitation (Nhieu Loc-Thi Nghe Basin) Project ProcurementCapacity Assessment and Risk Rating The procurement arrangements for the Parent Project were appraised in 2001 and the overall risk was rated as high because o f the PMU’s limited experience with Bank procurement procedures and a history o f prolonged procurement delays on similar projects Mitigation measures were put in place which included training o f personnel on Bank procurement guidelines, hiring o f an international consultant to assist with procurement activities and the hiring o f technical staff within the Project Management Unit with experience in international procurement Nevertheless, the processing o f procurement in the initial period has been slow with significant delays primarily due to the government’s time-consuming clearance and approval and some unexpected unfortunate situations (the attempt to procure several major civil works packages (Packages 11A; 11B; 12B and 13B) failed twice with the prequalification cancelled due to poor responses and the subsequent bidding failed due to high bid prices) Since then, the PMU’s procurement performance has considerably accelerated enabling most procurement to have been completed to date Procurement ratings have consistently been rated as Moderately Satisfactory for the past three ISRs The PMU’s procurement implementation capacity has improved over the years o f project implementation and they will continue to have assistance from international consultants However, considering the exceptional nature o f procurement under the proposed AF which requires use o f Direct Contracting for some major works contracts (see the paragraphs below) as well the PMU’s past performance, the procurement risk for the AF i s rated as substantial To mitigate the identified risk, the following measures will be taken: (i) procurement prior review to be conducted for all contracts with intensified technical review and extra vigilance on fraud and corruption; major civil works contracts shall be cleared with the Regional Procurement Manager; and (ii) enhanced supervision with to missions a year be undertaken- a measure already in practice ProcurementArrangements and Changes on Procurement Methods Procurement under the proposed Additional Financing will be carried out in accordance with the World Bank’s “Guidelines: Procurement under IBRD Loans and IDA Credits”, published in M a y 2004, revised October 2006 and “Guidelines: Selection and Employment of Consultants by World Bank Borrowers”, published in M a y 2004, revised in October 2006 and the provisions stipulated in the Financing Agreement As discussed in the Project Paper, the contractor o f one o f the civil works contracts was debarred by the Bank due to i t s engagement in fraud and corruption in a WB-funded project in another country The contract was terminated on February 28, 2010, with about 70 percent o f the works completed As a result, there are uncompleted works estimated to cost about US$20 million left over and new contractors will be hired to complete these works O f these works, the relocation o f the two-meter diameter water main i s proposed to be carried out by Sai Gon Water Corporation (SAWACO) through Direct Contracting method under a single point responsibility contract The justifications for use o f Direct Contracting method are that the relocation o f the 16 ’ meter diameter water main has been delayed for years because o f the City’s extreme concern as the main i s currently supplying water for at least million residents and any failure w i l l have serious social consequences With i t s seasoned experience, qualifications and unique know-how, SAWACO i s the only unit capable o f executing, managing and assuming full risks associated with executing the relocation However, as SAWACO i s a dependent state-owned enterprise (SOE) under HCMC People’s Committee, it does not meet the eligibility criteria in paragraph 1.8 (c) o f the Procurement Guidelines Therefore, a waiver from the Bank’s Managing Director to the requirements o f paragraph 1.8 (c) o f the Procurement Guidelines for the award o f this contract to SAWACO was sought and endorsed on February 10, 2010 Final approval o f the Executive Directors i s sought to grant the waiver to the eligibility requirements under paragraph 1.8 (c) o f the Procurement Guidelines to allow for the credit to finance the contract to be awarded to SAWACO Other remaining works (which include soil improvement, dredging, interface canal wallhridges and handrails and lighting) would‘ be divided into packages with cost estimates varying from US$3.5-6.9 million O f these packages, one contract w i l l be awarded to Thai Hien Co - an existing subcontractor, on Direct Contracting basis in order to complete the remaining 35.5 percent o f the dredging works This Direct Contracting was cleared by OPRC on January 15, 2010 Since Direct Contracting was not included in the original DCA, this method would be added in the Financing Agreement for the Additional Financing Other three Packages (soil improvement); (interface canal wall and bridges); and (handrails and lightings) will be procured through ICB method There are some other outstanding works under the project (rehabilitation o f Level and sewers) These works w i l l be procured though ICB method Goods and equipment to be procured under the Additional Financing include equipment for environmental monitoring and inspection, computer hardware and software for Flood Control Center (FCC) These goods and equipment w i l l be procured through ICB method The Additional Financing would also finance some consulting services A contract for financial audit o f the Additional Financing accounts w i l l be procured through Least Cost Selection method In addition, a portion o f the Additional Financing funds would be used for an extension o f the existing consultant’s contract (with CDM) for contract management and construction supervision on Single Source Selection basis, provided that the extension i s justified according to paragraph 3.10 o f the Consultant Guidelines Procurement Plan The Borrower has prepared a detailed Procurement Plan (see Attachment) for the contracts proposed to be financed by the Additional Financing The Bank team has reviewed and found these Procurement Plans acceptable This Procurement Plan w i l l be updated annually or as required to reflect the project’s actual implementationneeds 17 Annex 3, Attachment 1: Proposed Procurement Plan for the Additional Financing I General Project information: Country: Vietnam Borrower: Socialist Republic o f Vietnam Project Name: Ho Chi Minh City Environmental and Sanitation Project (HCMCESP) Loadcredit No.: 3475-VN Project Implementing Agency: HCMCES Project Management Unit under HCMC Department o f Transport Period covered by this procurement plan: for the entire period o f the proposed Additional Financing 11, Goods and Works and non-consulting services Prior Review Threshold: Procurement Decisions subject to Prior Review by the Bank remains the same as that stated in the parent project's Development Credit Agreement Proposed Procurement Packages with Methods and Time Schedule Reviewby Bank Prior Water main relocation (uncompleted works under Package I O ) Soil improvement (uncompleted works under Package I O ) Dredging (uncompleted works under Package I O ) Interface Canal Wall and Bridges by Pilling (uncompleted works under Package I O ) Handrails and Lightings (uncompleted works under Proc.Method PQ Direct Contracting No Direct Contracting No No Prior 6,900,OO 3,300,OO 6,015,OO Sai Cion River Crossing (uncompleted works under Package 7) ICB No No Prior July 2010 Direct Contracting ICB No No Prior Mar 2010 No No Prior June 20 I O ICB No No Prior May 20 10 4,600,OO I I Domestic Preference No 2,500,OO ContractDescriptions Maintenance Management System Rehabilitation o f Levels and Est'Cost (US$) 4,890,OO 2,660,OO I I ICB 18 I No I I Yes I I Prior ExpectedBidComments Opening Jan 2010 Already cleared by WB i n 712009 March 2010 I I Apr.2010 I I I III Selection of Consultan ts Prior Review Threshold: Selection decisions subject to Prior Review b y Bank the same as that stated in the parent project’s Development Credit Agreement Short list comprising entirely o f national consultants: The shortlist may comprise entirely national consultants if the estimated cost o f the assignment i s below US$200,000, a sufficient number o f qualified f i r m s i s available for having a shortlist o f f i r m s with competitive costs and when competition including foreign consultants i s prima facie not justified or foreign consultants have not expressed interest Package No 4B Description of Assignment Financial Audit for the AF Est cost (US$) 120,000 19 Selection Method Least Cost Selection Review by Bank (Prior / Post) Expected Proposals Submission Date Prior Feb 2010 Comments Annex 3, Attachment 2: Status o f Contracts Contract Value (US$.) Pkge No Description Consul./ Contractor Original Oh AF I D A Credit Amount (US$) Complete as o f December 2009 Final Estimates Camp Dresser & McKee International Inc (CDM) 4,467,611 4,637,6 1 Construction Management Consultancy CDM 8,629,200 10,969,322 Institutional Strengthening Consultancy CONSULTANCY Preparation o f DD, BD for the drainage component and the remaining components Colenco 1,869,490 2,430,197 PricewaterhouseCooper 135,518 255,518 Environmental Technology Hanoi Design and Construction Consultants JV o f Colenco Holinger 98,208 98,208 25,000 80,08 72,900 655,306 655,306 15,170 28,346,292 40,068,544 10,939,803 13,655,591 2,700,000 Financial Auditing Environmental Auditing Resettlement Action Plan Management Consultancy CCTV Level 2& Level Sewers Investigation 9A Level and Sewer Survey WASTEWATER COMPONENT Interceptor, CSOs and Outfall 7A CSOs, Open cut pipes and Manholes 7B Saigon River Crossing Pumping Station To be decided JV of TMEC - CHEC JV of Construction Technology Development Joint Stock Company -Hung Vuong CC.Ltd 17 1,000 60 4~4009000 91 7329000 46 1399000 65,000 AGE COMPONENT Rehabilitation o f Nhieu LOCThi Nghe - 8,500,000 JV o f Rotem - Hyundai carp - smbo ~~~f~~16,979,478 23,050,595 Construction Engineering Corporation lo* Water Main Relocation 10B soil Improvement loC Dredging loD Interface canal walls & bridges 90 11,700,000 80 895009000 6,000,000 97 I 60,876,9851 73,240,7611 65 SAWACO 2,500,000 To be decided 6,900,000 Thai Hien 3,300,000 To be decided 6,000,000 20 80 35 Italian Thai China State 75 159000 - cofico IDRAIN 100 235009000 6*9003000 3.3009000 6~ooo~ooo To be decided WASECO 1A2 Extension and Replacement of Level 2&3 Sewer Northwest 12A 1[2; 12B2 Extension and Replacement o f Level Sewer Northeast 13A Extension and Replacement o f Level 2&3 Sewer Center Area Bach Dang Construction Corporation Construction CorporationNo Construction Comoration Bach Dang Construction Corporation VIC Rehabilitation of Level & Sewers Subtotal I D A Retroactive IDA payments to Jan 1, 2009 Contingency I I 1,000,000 8,503,863 7,350,000 65 32 2,300,000 23,934,900 61 work illocated t 949,045 (5,700,000) CCl, VIC and WASECC 6,000,8611 8,256,432 43600,000 12,670,585 3,200,000 16,586,099 13B2 Extension and Replacement of Level 2&3 Sewer Southeast EnvironmentalMonitoring and Accounting and Financial Management System Integrated Operation and Maintenance 5c Management System 4,827,432 6,636,203 Construction Joint Venture ( V I 15b 3,782,671 6,222,455 Ha 4.600.0001 10,991,6791 15311,0261 4,820,000 Construction Corporation No 1 ~ Extension and Replacement o f Level 2&3 Sewer Southeast Computer Hardware and Network - ‘IENCo 9,437,626 Joint Venture Extension and Replacement o f Level 2&3 Sewer North Area 12B1 Extension and Replacement of Level Sewer Northeast I Construction Technology Development J Co S 1B Extension and Replacement o f Level 2&3 Sewer Southwest 11B2 Extension and Replacement of Level 2&3 Sewer Southwest I 50 8,737,6191 2,740,000 31 work illocated t 2,548,968 (5,700,000 cc 1, VIC and WASECC 9,169,4511 12,108,801~3,000,000 I 1,176,2001 13,937,43 2,800,000 61 60 + To be decided To be decided To be decided To be decided 6,000,000 I 440,0001 440,000 99,500 n 109,000 n 192,000 358,000 To be decided 361,000 99,500 I 361,0001 109,000 986,0001 192,000 2,660,000 297003000 I 77,500,00( 4,000,00( 8,500,00( 90,000,00( TOTAL 21 0 Annex 4: Summary o f ISR Ratings VIETNAM: H o Chi Minh City EnvironmentalSanitation (Nhieu Loc-Thi Nghe Basin) Project Institutional Strengthening Component Land Acquisition and Compensation PMU Operation Component Overall Safeguard Compliance Environmental Assessment Involuntary Resettlement I MS S M S M S M S 22 I S MS S M S M S M S I S S S S S I s / S S S S Annex 5: Project Description VIETNAM: H o Chi Minh City Environmental Sanitation (Nhieu Loc-Thi Nghe Basin) Project The objective o f the Project i s to assist the Recipient to reduce the incidence o f flooding and increase the collection o f wastewater in the Nhieu Loc-Thi Nghe (NLTN) Basin o f Ho Chi Minh City, in an environmentally and financially sustainable manner The Project consists o f the following parts: PART A: Wastewater Construction of: (a) (b) (c) (d) (e) PART B: a wastewater interceptor o f approximately 8.4 kilometers (km) in length and 2.5 meters (m) and 3.0m in diameter following the alignment o f the NLTN Canal, with approximately 36 permanent manholes; about 59 combined sewer overflow structures to divert wastewater flow into the interceptor in dry weather; flushing facilities on the upper and middle portions o f the NLTN Canal; a wastewater pumping facility with a hydraulic capacity o f approximately 64,000 cubic meters per hour near the confluence o f the NLTN Canal and the Saigon River, including wastewater screening, a control and data acquisition system and ancillary structures including an electrical building, transformer pad, odor control facility, administrative building, access road and perimeter fencing; and an outfall o f approximately 0.8 km in length and 3.0 m in diameter to convey screened effluent from the wastewater pumping facility to the Saigon River via a diffuser Drainage Replacement and extension o f approximately 65 km o f combined primary and secondary sewers in the NLTN Basin Dredging, transportation and disposal o f approximately 1,000,000 cubic meters o f sludge and excavated materials from the NLTN Canal and strengthening o f approximately 18 km o f canal embankments Inspection o f approximately 41 km o f brick secondary combined sewers in the NLTN Basin and rehabilitation o f up to 30 km o f inspected sewers Construction o f approximately 270 km o f tertiary sewers in the NLTN Basin Provision o f specialized operation and maintenance equipment, including vacuum truck, high pressure sewer cleaner, high pressure cleaning van, water tank, portable wastewater monitoring kit, accounting and management information system and computer equipment 23 PART C : Institutional Development and Project Management Provision o f consultants' services for strengthening the institutional capacity o f the P M U in connection with: (a) preparation o f detailed designs for Parts A and B o f the Project; and (b) supervision and management o f Project construction Provision o f consultants' services for strengthening the institutional capacity o f the Flood Control Center in drainage and wastewater services in connection with: (a) (b) (c) (d) (e) corporate and business planning, and development o f a management information system and geographic information system strategy; accounting and financial management; operation and maintenance planning and management; quality assurance, development o f procedures for awarding management contracts on a competitive basis; contract management and procurement management; human resources development strategy and related training; (f) (g) environmental management and impact assessment; and community consultation, communication and dissemination o f information Carrying out a program of: (a) independent monitoring o f the environmental impact o f the Project and the implementation o f the Environmental Management Plan; (b) independent monitoring o f the implementation o f resettlement, rehabilitation and compensation o f Affected persons; and (c) independent auditing o f Project accounts, accounts o f the Flood Control Center related to wastewater and drainage facilities under i t s jurisdiction, and o f the Wastewater and Drainage Account, all through the provision o f consultants' services PART D: Resettlement Resettlement, rehabilitation and compensation o f Affected Persons 24 ... CUP Community Upgrading Plans EA Environmental Assessment EMF Environmental Management Framework FM Financial Management FCC Flood Control Center HCMC Ho Chi Minh City ISR Implementation Status... Directorhlanager: John Roome/ Hoonae Kim Project Name: Ho Chi Minh City Environmental Sanitation (Nhieu LOC Thi Country Director: Victoria Kwakwa Environmental Category: A Nghe Basin) Project Original... (i)achieve sustainable improvements to the public health, particularly o f H o Chi Minh City? ??s urban poor population, and (ii) increase economic development in the commercial center o f the City