MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT (MARD)
CENTRAL PROJECT OFFICE
ADB Loan No 2828-VIE
DEVELOPMENT OF NORTHERN CHU AND SOUTHERN MA RIVERS IRRIGATION SYSTEM PROJECT
QUARTERLY PROJECT PROGRESS REPORT
QUARTER I/ 2014
Korea Engineering Consultants Corp. (KECC)
In association with:
Viet Development Consultants JSC (VIDECO)
TABLE OF CONTENTS
I. Introduction 4
II. Project Implementation Progress
III. Utilization of Funds 9
IV. Encountered issues and problems 14
V. Conclusions and recommendations 15
VI. Work Plan for 2014 15
Attachment 1: Progress of Detailed Engineering Design
Attachment 2: Procurement Progress
Attachment 3: Progress of Resettlement and Land Acquisition
Attachment 3.a: Implementation Progress of RP
Attachment 4: Implementation Schedule of contracts
Attachment 5: Implemented and Accepted Quantities, and Payment
Attachment 6: Plan for Contract Award and Disbursement in quarter I and 2014
Quarterly reports will include all project activities in the reporting period and the next quarter plan on: (i) general introduction of the project; (ii) the project implementation progress; (iii) utilization of funds (ADB and counterpart funds); (iv) encountered issues and problems; (v) conclusions and recommendations; and (iv) work program for the next quarter. Templates included in the report will be filled up by ICMB3, PPMU and CPMU and sent to PMC by 25th day of every month. Based on information and data provided by ICMB3, PPMU and CPMU, PMC will prepare monthly, quarterly and annually reports in submission to ADB through CPMU.
I. Introduction
I.1 Project Description
The overall Programme aims to provide farmers with reliable irrigation services by upgrading and developing the irrigation and drainage facilities over about 31,100 ha within the Northern Chu and Southern Ma Rivers irrigation command area of Thanh Hoa Province. This will increase agricultural productivity and the incomes of the rural poor.
The Programme expects to contribute to safeguarding the effects of climate change that has the potential to impact on production rates and food commodity prices in the future. The Programme also seeks to develop the use and benefits of capital investment already made on the Cua Dat multi-purpose reservoir. Programme objectives addressed during design concentrate on a number of national thematic and local practical issues, including:
· food security for a growing population through increasing crop productivity and diversification, alleviating rural poverty;
· optimization of the benefits from the Multi-purpose Cua Dat Reservoir including repulsion of saline intrusion whilst minimizing pollution from fertilizers and pesticides;
· efficient use of water in the face of competing demands;
· achieving sustainable financing for O&M and rehabilitation of irrigation facilities;
The Programme comprises the following main components:
PHASE 1:
· Construction of new Main Canal (16.5km) and control structures. The base cost of Phase 1 investment is estimated at VND 1,070 billion ($51.7 million equivalent). This phase is currently under construction.
PHASE 2:
· Construction of the new North and South Main Canals, measuring 34.3 km and 23.5 km, respectively, and development of lower order canals and on-farm facilities. The Phase 2 investment is estimated at VND 3,017 billion or $143.1 million equivalent, including $110 million from the ADB and $ 33.1 million from counterpart funds ($28.1 million from the central government and $5.0 million from the local government). This will be co-financed by ADB through a loan agreement signed between ADB and The State Bank of Vietnam on 9 March 2012 and was declared effective on 10 July 2012.
PHASE 3:
· Construction of the extension of the North and South Main Canals (from km 34.3 to km 47.3 of the North Main Canal, and km 23.5 to km 46.5 of the South Main Canal), and rehabilitation of the South Ma pumped irrigation scheme command area. The base cost of Phase 3 investment is estimated at VND 1,207 billion ($58.3 million equivalent). This phase is expected to start on 2014.
The planned outputs of the Phase 2 project (the Project) are: (i) Output 1: improved water resources management, delivery of irrigation services and irrigation system operation and maintenance (O&M); (ii) Output 2: improved irrigation infrastructure; (iii) Output 3: improved access to and use of rural support services, agricultural inputs and information; and (iv) Output 4: effective project management.
The Ministry of Agriculture and Rural Development (MARD) is the executing agency (EA) and has delegated the responsibility for project implementation to a Central Project Management Unit (CPMU) within its Central Project Office (CPO). ICMB3 under MARD and PPMU under Thanh Hoa DARD are responsible for day to day management the North Main canal and the South Main canal under construction respectively.
This quarterly report covers the full three months of October, November and December 2013January, February and March 2014 and describes the results of the activities of the Project during the reporting period and gives the implementation plan for the next quarter. The report also describes briefly the implementation progress of the whole project.
I.2 Loan Agreement
(i) ADB Loan Number: Loan 2828-VIE (SF).
· Name of Project: Development of Northern Chu and Southern Ma Rivers Irrigation System Project,
· Borrower: The Social Republic of Vietnam
· Executing Agency: Ministry of Agriculture and Rural Development (MARD)/ Central Project Office (CPO)
· Implementation Agencies: Investment Construction Management Board No. 3 (ICMB3); Thanh Hoa Department of Agriculture and Rural Development (DARD)/ Provincial Project Management Unit (PPMU);
· Date of signing the loan agreement: 09/3/2012; The effectiveness of loan:
10/7/2012.
· Project Completion date: 30/6/2017.
· Loan Closing Date: 31/12/2017
· Date of the last review mission of ADB: 23 Sep to 1 Oct 2013.
(ii) Total estimated project cost and financing;
· The Project cost is estimated at $143.1 million (ADB: 110 million USD; Government: 33,1 million USD);
· Update of Contract Awards and Disbursements is proposed by CPO, November 2013 in Table 1.
Table 1
Unit: mil$US
Items / Fund / 2012 / 2013 / 2014 / 2015 / 2016 / 2017 / TotalContract Awards / ADB / 0.0880,088 / 18.419,41 / 6360,85 / 219,83 / 55,31 / 214,512 / 110 110
GOV / 0.860,86 / 11.710,56 / 1017,87 / 52,46 / 30,25 / 21,1 / 33 33,1
Total / 0.9 0,948 / 30.1 29,97 / 73 78,72 / 26 12,29 / 8 5,56 / 4 15,612 / 143 143,1
Disbursements / ADB / 6.06 / 2.654 / 1425,21 / 3127,05 / 3524,793 / 2023 / 110 110
GOV / 1,011,06 / 8.426,94 / 1013,47 / 68,22 / 52,61 / 20,8 / 33 33,1
Total / 7,0 7,06 / 11.07 10,887 / 24 38,68 / 37 35,27 / 40 27,403 / 22 23,8 / 143 143,1
(iii) Status of project financing including availability of counterpart funds and co-financing:
Counterpart funds were allocated in 2014: 18,58011.4. million USD (390,200240. billion VND).
II. Project Implementation Progress
A. Improved irrigation and water management
1. Policy, training and capacity building support
· Institutional specialist will be mobilized in April 2014 to prepare
+ Scope of work; and
+ TOR for consultancy services selection.
2. IMC capacity building
2.1 IMC capacity building
· Water resources specialist will be soon remobilized to prepare
+ Scope of work; and
+ TOR for consultancy services selection.
2.2 Preparation of IMC Irrigation map: It will be under consideration in combination with the application of GIS system for the purpose of the project management and monitoring.
2.3 Preparation of IMC irrigation map system: in the contract signed between PMC and CPO, PMC is responsible for selection of a sub-consultant for development of GIS system for the project monitoring and management. PMC realises that to save up time and fund (193,000. $US), fund will be used from two packages: (i) PMC sub-consultant will develop irrigation GIS database (PMC contract-provisional item (120,000. $US) (ii) Package A.2.3: GIS for development of irrigation map (33,000. $US/193,000.$US allocated). Out puts are GIS system for project monitoring and management + Irrigation map system. Scope of work for the two packages is available for review. After approval, RFP will be prepared and ready in May 2014. The combination will save up time and money (160,000. $US).
3. EMDP/GAP/PRSS
3.1 RP updating consultants, RP1 and RP 2: Selection is completed;
3.2 EMDP/GAP update for main canal: Selection is completed;
3.3 EMDP/GAP and Poverty Reduction and Social strategy (PRSS): It seems that the package is not needed as all activities in EMDP/GAP can be managed by CPMU/DARD/PPMU..
4. WUG support and RDS (NMC) and
4.1 WUG support and RDS (NMC) and 4.2 WUG support and RDS (SMC)
· Draft final Scope of detailed program for Rural Development Support (RDS) activities was under preparation and submission to CPMU for approval on 26 March 2014;
· North main canal: Draft final TOR for consulting services for RDS implementation in North Main Canal was prepared and submitted to CPMU for approval on 26 March 2014;
· South main canal: Preparation of TOR for consulting services for RDS implementation in North Main Canal was prepared and submitted to CPMU for approval on 26 March 2014;
B. Improved irrigation infrastructure
1. Technical Engineering Design:
· For the North Main Canal: The detailed engineering design (DED) for the canal and on-canal structures was completed and approved by ICMB3 (for ICB packages B.1.1, B.1.2, B.1.3 and B.1.4) on 30/6/2012.
· For the South Main Canal: DED for the canal and on-canal structures was completed and approved by DARDICMB3 (for ICB packages B.2.1, B.2.2, and NCB package B.2.3) on 30/6/2012.
· For branch canals belonging to the North Main Canal: DED and cost estimate for five NCB packages was completed and submitted to Department of Construction for appraisal before DARDICMB3, approval.
· For branch canals belonging to the South Main Canal: DED and cost estimate for three NCB packages was completed and approved by Thanh Hoa DARD on 14 March 2014.
· The cost however is considerably increased in comparison with that in the stage of project preparation (see below table 2). The total fund shortage for the development of branch canal system is about 13.872 $US. The consultant prepared a report to explain the reasons for the cost increment to submit to CPMU for consideration and finding fund source (See Table 2).
Table 2
No / Items / Investment project (M.$US) / DED(M.$US) / Difference ($US)
($M.US) / Percentage (%)
1 / North Main Canal / 11.951 / 19.135 / 7.187 / 60
2 / South Main Canal / 3.970 / 10.655 / 6.685 / 168
Total / 15.921 / 29.790 / 13.872 / 87
Source: HEC estimate
2. Approval of working drawings and cost estimate:
· The North Main Canal: The approval for all ICB packages was done by ICMB3 in September 2012, January and April 2013, while working drawings and cost estimate of NCB packages B.3.1 and B.3.2 (Electric Equipment) was approved by ICMB3 in April 2013.
· The South Main Canal: The approval for ICB packages was done by PPMU in January and March 2013 while working drawings and cost estimate of NCB package B.2.3 and B.3.3 was approved by Thanh Hoa DARD in April 2013 and May respectively.
· DED for branch canal system of North main canal:
+ DED and cost estimate were completed by HEC (local consultants); and
+ ICMB3 submitted DED and cost estimate to Department of Construction (DOC) under MARD for appraisal;
+ After DOC’ review, ICMB3 will approve DED and cost estimate.
· DED for branch canal system of South main canal:
+ DED and cost estimate were completed by HEC (local consultants); and
+ ICMB3 DARD approved DED and cost estimate on 14 March 2014.
· Cost increase: After appraisal of DEDs for branch canal systems in the areas of the north and south main canal systems, total fund shortage is about 14.000 million $US which needs ADB approval soon.
3. Procurement:
· The North Main Canal:
+ ICB package B.1.1: Bidding documents (BDs) issuance: 05/7/2013; Submission date of bid evaluation report: 23/10/2013; and date of signed contract: 26/11/2013 with contractor for Lot 1 and Lot 3 of the package. As some reason ADB has not given no-objectionadvance payment for the contractor award of Lot 2 so far;
+ ICB package B.1.2: The bidding document was received and approved by ADB on 11 September and 17 December 2013 respectively. The Issuance date of bidding document was on 26 December 2013 and deadline of bid submission: 11/2/2014; the bid evaluation report would be expected to submit to ADB for review by the end of May 2014.
+ ICB package B.1.3: The bidding document was received and approved by ADB on 25 January and 17 February 2014 respectively. The Issuance date of bidding document was on 19 February 2014 and deadline of bid submission was on 3 April 2014; the bid evaluation report would be expected to submit to ADB for review by the end of May 2014.
+ ICB package B.1.4: The bidding document was received and approved by ADB on 12 March and 1 April 2014 respectivelyThe bidding document was approved by ADB on 07 October 2013. The Issuance date of bidding document was on 17 October 20138 April and deadline of bid submission was on 19 23 November May 20132014; contract award was 9 January 2013
+ NCB package B.3.1: The bidding document was approved on 07 October 2013. The Issuance date of bidding document was 17 October 2013 and deadline of bid submission was on 19 November 2013. ADB approved Contract award was on 09 January 2014 and contract was signed.
+ NCB package B.3.2: The bidding documents in Vietnamese was reviewed and revised on the basis of ADB version on March 2014. The invitation for bid would be expected by May 2014.
· The South Main Canal:
+ ICB package B.2.1: Issuance date of Bidding documents: 5/12/2013 and deadline of bid submission: 16/1/2014; BER received by ADB on 17 27 March 2014 and under review.
+ ICB package B.2.2: bidding document was under preparation and would be submitted to ADB end of April 2014.
+ NCB package B.2.3: The bidding documents in English (Vietnamese version available) were issued on approved by ADB on 6 December 2013 and deadline of bid submission was 16 3 January 2014 and under bid evaluation process. BER would be expected to be submitted to ADB in May 2014.