Documentof The WorldBank FOR OFFICIAL USEONLY ReportNo: 32337-VN PROJECTAPPRAISAL DOCUMENT ONA PROPOSEDCREDIT INTHEAMOUNT OFSDR21.O MILLION (US$31.73 MILLIONEQUIVALENT) TO THE SOCIALIST REPUBLIC OF VIETNAM FOR A ROAD SAFETY PROJECT MAY 13,2005 TransportUnit EastAsia andPacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosedwithout WorldBank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective April 30, 2005) Currency Unit = Vietnamese Dong (VND) 15,839VND = US$1 US0.6613 = SDR 1 FISCAL YEAR January 1 - December31 ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank CAS Country assistance strategy CPRGS Comprehensive Poverty Reduction and Growth Strategy DP Displacedperson E(I)RR Economic (internal) rate o freturn EMDP Ethnic minorities development plan EMP Environmental management plan GDP Gross domestic product I N S 0 Inter-Agency Procurement Services Office o fthe UnitedNations I C B Internationalcompetitive bidding IDA InternationalDevelopment Association JBIC Japan Bank for International Cooperation JICA Japan International CooperationAgency N C B National competitive bidding NPTS National Program for Traffic Safety NPV Net present value NRADS National RoadAccident Database System NTSC National Traffic Safety Committee PIP Project Implementation Plan QCBS Quality cost-based selection RAP Resettlement action plan RPF Resettlement policy framework TS PMU Traffic Safety Project Management Unit TSSR Transport Safety Strategy Review UNDP UnitedNations Development Program VRA Vietnam Road Administration VRSP Vietnam Road Safety Project Vice President: Jemal-ud-din Kassum Country Managermirector: Klaus Rohland Sector Manager: Jitendra N.Bajpai Je A. Lebo FOROFFICIAL USEONLY VIETNAM RoadSafety Project CONTENTS Page A. STRATEGIC CONTEXT AND RATIONALE ..................................................... 1 1. Country and sector issues........................................................................................ 1 2. Rationale for Bank involvement ............................................................................. 3 3. Higher-level objectives to which the project contributes ....................................... 4 B. PROJECT DESCRIPTION ..................................................................................... 4 1. Lending instrument ................................................................................................. 4 2. Project development objective and key indicators.................................................. 4 3. Project components ................................................................................................. 4 4. Lessons learnedandreflected inthe project design................................................ 8 5. Alternatives considered andreasons for rejection .................................................. 9 C . IMPLEMENTATION ............................................................................................ 10 1. Partnership arrangements (ifapplicable) ..................... ;........................................ 10 2. Institutional and implementation arrangements.................................................... 10 3. Monitoringand evaluationo f outcomes/results .................................................... 12 4. Sustainablllty......................................................................................................... . . . 13 5. Critical risks andpossible controversial aspects................................................... 13 6. Credit conditions and covenants ........................................................................... 14 D APPRAISAL SUMMARY . ..................................................................................... 15 1. Economic and financial analyses.......................................................................... 15 2. Technical............................................................................................................... 16 3. Fiduciary ............................................................................................................... 16 4. Social..................................................................................................................... 17 5. Environment.......................................................................................................... 17 6. Safeguard policies................................................................................................. 19 7. Policy Exceptions and Readiness.......................................................................... 19 This document has a restricted distribution and may be used by recipients only in the performance of their official duties I t s contents may not be otherwise disclosed . without World Bank authorization . Annexes Annex 1:Country and Sector or Program Background ............................................. 21 Annex 2: Major Related Projects Financedby the Bank and/or other Agencies .....27 Annex 3: Results Framework and Monitoring ............................................................ 29 Annex 4: Detailed Project Description .......................................................................... 33 Annex 5: Project Costs................................................................................................... 37 Annex 6: ImplementationArrangements ..................................................................... 39 Annex 7: Financial Management and DisbursementArrangements ......................... 43 Annex 8: Procurement Arrangements .......................................................................... 47 Annex 9: Economic and FinancialAnalysis ................................................................. 55 Annex 10: Safeguard Policy Issues ................................................................................ 63 Annex 11:Project Preparation and Supervision ......................................................... 81 Annex 12: Documents inthe Project File ..................................................................... 83 Annex 13: Statement of Loans and Credits .................................................................. 85 Annex 14: Country at a Glance ..................................................................................... 87 IBRDMap 33693 VIETNAM ROAD SAFETY PROJECT PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC EASTR Date: May 13,2005 Team Leader: Jerry A. Lebo Country Director: Klaus Rohland Sectors: Roads andhighways(70%); health Sector ManagerjDirector: Jitendra N.Bajpai (20%); general education sector (10%) Themes: Improving labor markets (P);Other public sector governance (S); injuriesand noncommunicable diseases (S) Project ID: PO85080 Environmental screening category: Partial Assessment LendingInstrument: Specific InvestmentLoan Safeguard screening category: Limitedimpact [ ] Loan [XICredit [ ] Grant [ ] Guarantee [ ] Other: For LoansKreditdOthers: Total Bank financing (US$ million): 31.73 Proposed terms: Standard, with 40-year maturity and 10 years grace period Borrower: Socialist Republic o f Vietnam ResponsibleAgency: National Traffic Safety Committee, Traffic Safety Projects Management Unit 80 TranHungDao Hanoi, Vietnam Tel: (84-4) 942-6528 Fax: (84-4) 942-7591 leminhchauhcm@hn.vnn.vn innual 1.20 8.50 11.00 9.00 2.03 :umulativeI 1.20 II 9.70 II 20.70 II 29.70 II31.73 II Project implementation period: Start July 1,2005 End: June 30, 2009 Expected effectiveness date: October 27,2005 Expected closing date: December 31,2009 Does the project depart from the CAS incontent or other significant respects? Re$ PAD A.3 [ ]Yes [XINO Doesthe project require any exceptions from Bankpolicies? Re$ PAD D.7 [ ]Yes [XINO Have these been approved by Bank management? [ ]Yes [XINO [s approval for any policy exception sought from the Board? [ ]Yes [XINO Does the project include any critical risks rated "substantial" or "high"? Re$ PAD C.5 [XIYes [ ]No Does the project meet the Regional criteria for readiness for implementation? Re$ PADD.7 . [XIYes [ ] N o Project development objective Re$ PAD B.2, Technical Annex 3 The project development objective is to reduce the rate o f accidents, injury, and death associated with road transport throughphysical improvement and institutional development to strengthen the management o f road transport safety. Project description [one-sentence summary of each component] Re$ PAD B.3.a, Technical Annex 4 The project has three components: Institutional and Capacity BuildingProgram, Road Safety Demonstrationand Awareness Program, andRoad Safety Monitoring and EvaluationProgram. Component A will provide technical assistance and project implementation support to strengthen the management and technical capacity o f the National Traffic Safety Committee (NTSC) Executive Office and the Traffic Safety Project Management Unit (TS PMU) andprepare a national road safety strategy. Component Bwill assist the government indeveloping and implementing comprehensive, integrated safety programs, including enhancement of road safety auditing processes and fundingo fblackspot treatments, for three high-risk road corridors, and also includes a program o f roaduser education, traffic safety enforcement, and emergency service preparedness along the three demonstration corridors. Component C will support the development o f a national road accident database system, to be used initiallyby Vietnam Road Administration (VRA) to enhance the identification and treatment o fblackspots and by the Ministry o f Public Safety to improve enforcement strategies andpriorities. Which safeguard policies are triggered, ifany? Re$ PAD D.6, Technical Annex 10 Environmental Assessment (OP/BP/GP 4.01) Involuntary Resettlement (OP/BP 4.12) Significant, non-standard conditions, if any, for: Re$ PAD C.7 Boardpresentation: N o policy exceptions are required. Loadcredit effectiveness: Besides the standard requirements, the following conditions have been set for credit effectiveness: -- NTSC has finalized and adopted the project implementationplan. TS PMUhas established a computerized financial management system for the project, including design o f the chart o f accounts and installation o f software to produce financial monitoring reports. - TS PMUstaff has receivedtraining inthe financial management system and inthe Bank's financial management, disbursement, and procurement procedures. - A financial management officer anda full- time accountant havebeen appointedat - TS PMU. The Consultative Council and the sub-PMUs have been established. - The PrimeMinister has instructedNTSC andthe participating agencies to develop and implement a detailedmechanism for sharing information about improving road safety. - NTSC has trained the staff o f all participating agencies onprocurement. Covenants applicable to project implementation: No simificant or nonstandard conditions. A. STRATEGIC CONTEXT AND RATIONALE 1. Country and sector issues The government ofVietnam's development objectives, as well as concrete actions to achieve them, are presented inthe country's Comprehensive Poverty Reduction and Growth Strategy (CPRGS), which i s basedon its medium-term(2001-2010) development strategy. The CPRGS has three pillars: (i) highgrowththrough transition to a market economy; (ii) an equitable, socially inclusive, and sustainable pattemof growth; and(iii) adoption o fmodernpublic administration, legal, and governance systems. the Vietnam has hadone o fthe fastest growing economies inthe world inrecent years, and poverty has declined rapidly. Despite these gains, an estimated 24 percent o f the population livedbelow the poverty line in2004. Furthermore, a large proportion o f the population livesjust above the poverty line andis vulnerable to falling into poverty with even minor changes ineconomic circumstances. Economic growth i s beingaccompanied byrapid traffic growth. Since 1990, the number of automobiles has increased two-and-a-half times andthe number o f motorcycles has increased eight-and-a-half times. Over 90 percent o f the 11-12 million motorized vehicles inVietnam are motorcycles. Yet incomparison to those o f other Asian countries, motorization levels inVietnam are still low, indicating that vehicle ownership will continue to increase with economic growth for manymore years. Road fatalities increased 39 percent in2000/2001 and 22 percent in2001/2002. Vietnam had a reported fatality rate o f about 12per 10,000 vehicles and an accident rate o f about 20 per 10,000 vehicles in2004. These rates are below those o f China (about 25-30 fatalities per 10,000 vehicles), but higher than those of Thailand and Malaysia (about 5 fatalities per 10,000 vehicles). Rates inOECD countries are inthe range o f 1-2 fatalities per 10,000 vehicles. InVietnam, as inmanycountries, under-reporting ofaccidents and fatalities is significant. The Vietnam Multi-Center InjurySurvey o f 27,000 households estimatedthat there were 900,000 road traffic accidents involving injury in2001, incomparison to reported accidents o f 25,000. Similarly, road-related fatalities are estimated to be under- reported by about 30 percent. Fatalities are particularly common among young motorcycle users. The deteriorating road safety environment inVietnam reflects regional trends. Road deaths are projected to grow by 80 percent inthe East Asia andPacific region inthe next two decades inthe absence of new policies and greater road safety investment.' Vietnam is not expected to go against this trend inthe short or mediumterm without significant investment and policy reform. ElizabethKopitsandMaureen Cropper, TrafzcFatalities and Economic Growth. 2003. PolicyResearch Working PaperNumber3035. World Bank, Washington, DC. 1 Government Strategy Vietnam's 2002-201 0 National Policy on Accident and InjuryPrevention2notes that injuries related to road accidents are notjust a transport sector issue, but a leading factor inawider national injurycrisis. The government-at the highest levels and across sectors-therefore gives a highpriority to improving road safety. The Government strategy i s spelled out inthe National Program for Traffic Safety (NPTS), which covers the period 2001-2005. The NPTS calls for policy andphysical interventions funded by government budgets, driver training and licensing fees, insurance, and official development assistance. Its activities include (i) education andpublicity campaigns; (ii) road safety audits; (iii) identification and treatment o fblackspots3(iv) development o f a traffic accident reporting and analysis database; (v) improvement inthe driver training and licensing system; (vi) creation o f first-aid stations; and (vii) modernization o fthe motor vehicle registration and inspection system. The National Traffic Safety Committee (NTSC) i s responsible for coordinating delivery o fNPTS activities andreporting on progress. It has a small secretariat (Executive Office) inthe MinistryofTransport. Elevenministries arerepresented onthe NTSC at the deputy minister or vice minister level. The chairman is the minister o f Transport. National government funding for NTSC and road safety activities carried out by line ministries comes from traffic fine receipts. The majority (60 percent) o fthese funds goes directly to the Road andRail Traffic Police Administration (RRTPA) under the Ministry o fPublic Security, while other road safety activities and NTSC receive 35 percent. The remainder is usedfor general budget support. Local funding for traffic safety activities also comes from fines, with the bulk allocatedto traffic police, traffic inspection, and localpolice departments (52 percent). The remainder i s usedto fund vehicle inspection centers, local traffic safety departments, and local government road safety activities. The overall level o f funding for road safety in2003 was about US$45 million, split equally between local and national expenditure. Sector Issues In2003, the World Bank conducted atransport safety strategy review (TSSR) to assess government programs and approaches to road safety, set out short-, medium-, and long- term strategies to address deteriorating road safety inVietnam, and guide World Bank investment for the next 15 years. InJune 2003, the World Bank andthe government discussed the findings o f the TSSR andthe main issues inthe sector. Capacity and accountability. The most pressing need inroad safety is to strengthen the capacity, resources, and skills o f the agencies responsible for delivering the government's program, including NTSC. The current legal framework focuses NTSC's role in coordination, leaving responsibility for implementation with central government ~~ 2 National Policy on Accident andInjury Prevention2002-201 0, Vietnam Ministry o fHealthandNational Steering Committee on Accident and InjuryPrevention, Hanoi 2002. A blackspot is a roadsite where serious accidents frequently occur. A black route is a longer stretch of road where accidents frequently occur. 2 agencies, other relevant organizations, andprovincial andmunicipal People's Committees. This limits accountability for overall outcomes andmakes coordination difficult. Furthermore, funding streams are uncertain, and interventions are not monitored or assessed. Donors, private businesses, andnongovernmental organizations (NGOs) also develop projects, but these are not incorporated into a cohesive program. Knowledge and awareness of road safety. Because motorization inVietnam has increased so rapidly, the public sector response has emphasized basic traffic management functions such as driver licensing and vehicle inspection and registration. International experience, however, suggests that such programs, although important for general standards setting and administration, have only a marginal impact on accident and fatality rates inthe short term. To curb rapidly rising accident and fatality rates, targeted, cost- effective measures that have an immediate impact, such as speed-limit and drunk-driving enforcement, separation o f traffic, and motorcycle helmet law enforcement, must be identified, implemented, and monitored under a comprehensive program o f action. Furthermore, public awareness o fthe importance o f road safety and compliance with road safety laws must improve. For example, alcohol appears to be a bigger traffic safety problem than i s acknowledged, but little attempt has beenmade to deter drunk drivers. Furthermore, laws requiring motorcycle helmets and imposing speed limits are seenby the public as ineffective or inconflict with personal freedom. And finally, inthe face o f poor traffic behavior, traffic police also lack knowledge and incentives for developing more effective policing strategies, have limitedresources, and see their job largely as the apprehension o f offenders rather thanthe deterrence o f unsafe behavior. Framework for long-term action. Despite its breadth, the NPTS lacks a method for setting priorities or an effective framework for monitoring and evaluation. Experience from other countries has shown that improving road safety requires a consistent 20- or 30-year effort. The NPTS is a 5-year strategy and therefore should be seen as the first phase o f a longer-term strategy. Business planningprocesses and financial management andperformance monitoring systems must be put inplace to support such a long-term strategy, and the first phase o f such a strategy should lead to consensus among stakeholders and public sector agencies on how to proceedwith a long-term action plan based on demonstrably successful interventions. A financing plan and institutional development strategy for implementing the long-term strategy should also be specified. 2. Rationale for Bank involvement The World Bank partnered with the World Health Organization in2004 to producethe World Report on Road Traffic InjuryPrevention, demonstrating both organizations' recognition o froad safety as a major world health issue. The Bank, by virtue o fthis experience and commitment, and its substantial engagement inthe road sector inVietnam inthe past 11years, iswell-placed to work withthe Vietnamese onroadsafety. The design o fthe project also takes into considerationthe findings o f the TSSR and i s consistent insize and scope with objectives described inthe CAS Progress Report for Vietnam (2004). 3 3. Higher-leveI objectives to which the project contributes The project will assist inreachingthe CAS objective o f supportingVietnam's high- growth strategy by addressing the immediate need to reduce the rates o f road accidents, injuries, and fatalities inVietnam. This will reduce road accident-related health shocks that pushpeople into poverty or make escape from poverty difficult. Moreover, the project will lower the health costs and economic inefficiencies resulting from road crashes, as well as address the administrative, legal, and governance arrangements requiredto improve road safety. The project will also buildup cross-sector capacity among transport, health, education, andjudicial sectors, andwill integrate a wide array o f World Bank- and other donor-fundedroad safety initiatives into a consistent safety management framework. B. PROJECTDESCRIPTION 1. Lending instrument A specific investment loan(SIL) was adopted to initiate a comprehensive road safety effort inVietnam, although it is understood that a long-term commitment will be necessary to sustain project outcomes. An adaptable program loan (APL)was rejected for reasons outlined inSection B5. 2. Project development objective and key indicators (Annex 3) Program objective and phases The project development objective is to reducethe rates o f accident, injury, and death associated with roadtransport through physical improvement andinstitutional development to strengthen the management o f roadtransport safety. The key performance indicators are: i.Ratesofaccident,injury,anddeathonprojectroadcorridorsreduced; ii.Developmentandgovernmentapprovalofanationalroadsafetystrategy specifying achievable performance targets and a financing plan; iii.Driverbehaviorandcompliancewithvehicleandlicensingstandardsonproject road corridors improved; and iv. Monitoringand evaluation framework implemented inproject corridors andused to prioritize road safety interventions, andnational road accident database system (NRADS) established andupdated regularly. 3. Project components The project has three components: Institutional and Capacity BuildingProgram, Road Safety Demonstration andAwareness Program, andRoad Safety Monitoring and Evaluation Program. 4 ComponentA. Institutionaland capacitybuildingprogram(US$7.84 million) This component will provide technical assistanceandproject implementation support to strengthen the management andtechnical capacity o fthe NTSC Executive Office, the Traffic Safety Project Management Unit (TS PMU), the sub-PMUs, and corridor supervision teams. This component will also support the preparation o f a performance- based national road safety strategy, including a financing plan. This component has four subcomponents: A.1 Capacity building and implementation support (US$5.04million). This subcomponent will finance an integrated package o ftechnical assistance to support capacitybuildingand implementation across all project components and implementing agencies. The following areas will be supported: (i) management and strategy support to the NTSC and its Executive Office; (ii) implementationsupport to the TS PMU; (iii) technical and specialized studies to support sub-PMU teams; (iv) training; and (v) development o f a targeted, performance-based national road safety strategy, including financing plan. A.2 Safeguards implementation support and independent monitoring (US$O.10million). This subcomponent will provide consulting services and equipment as neededto support the TS PMUwith the implementationofthe project Environmental Management Plan (EMP) andResettlement PolicyFramework (RPF), andemploy anindependent agency to monitor compliance with project safeguard policies. A.3 NTSCequipment to support implementation (US$O.65 million). This subcomponent will provide funds to purchase office equipment, vehicles, andother goods to ensure that the NTSC Executive Office, TS PMU, and the sub-PMUs have adequate facilities to carry out the project. A.4 Operating costs and training (US$2.05 million). Funds will be used to cover NTSC's operating costs duringimplementation (US$1.5 million) andprovide training related to project implementation (US$0.55 million). These costs will be hlly financed by the Government o fVietnam. ComponentB.Roadsafetydemonstrationandawarenessprogram (US$20.89 million) This component will develop and implement comprehensive, integrated safety programs along three high-risknational road corridors. The three demonstration corridors identified for inclusion under the project are: (i) National Highway 1betweenHanoi andVinh (281 km); (ii)NationalHighway 1betweenH o ChiMinhCity and CanTho City (151km); and (3) Highway 51 from Dong Nai province to Vung Tau (80 km).This component has 12 subcomponents. B.1Blackspot treatmentprogram (US$3.75 million). This subcomponent will treat blackspots on the three demonstration corridors. Sites to be treated inyears 2 to 4 o f the blackspot treatment program will be selected by the Vietnam RoadAdministration (VU), supportedbytechnical assistance providedunder subcomponent A1 . 5 B.2Resettlement (US$O.81 million). This subcomponent will fundresettlement and land acquisition costs associated with the implementation o f the blackspot program inthe three demonstration corridors. B.3 Design and construction supervision (US$O.14million). This subcomponent will provide technical assistanceto VRA to support design and supervision services provided under subcomponent B1. These services will include engineering surveys, construction drawings and preliminary designs, specifications, cost estimates, andbiddingdocuments for blackspot treatments. They will also include construction supervision services to ensure efficient andhigh-quality execution o fthe works. B.4 Vehicle inspection computer system upgrade (US$l.55 million). This subcomponent will support the Vietnam Register inupgrading its national vehicle inspectionsystem (computer and communications equipment, software development, and vehicle inspection equipment) including specialized vehicle inspection equipment at three primary national vehicle inspection stations (Hanoi, H o Chi MinhCity, and Vinh Long). It will also support the provision o f equipment invehicle testing stations and equipment to conduct mobile vehicle inspections inthe three demonstration corridors. This subcomponent will be supported bytechnical assistanceprovided under subcomponent A1. B.5Driver trainingand testing (UX31.25 million). This subcomponent will support the VRA byprovidingequipment to improve the driver training centers at Chi Linhandin DongNaiprovince and related facilities, according to the recommendations o f the nationalreview of driver training, testing, and licensing systems that will be carried out under subcomponent A1. B.6Road safety audits and safety inspection (US$0.29million). This component provides consulting services for VRA inroad safety audits4 andblackspot or black route identification and treatment: (i) developing, formalizing, and applying procedures; (ii) working with the Traffic Police to specify data and evaluation and monitoring requirements; and (iii) identifying and investigatingblackspots andblack routes, designingtreatments, andmonitoring and evaluationo f treatment effectiveness. B.7Demonstration corridor safety enforcement (US$3.85 million). This subcomponent will support the Traffic Police through the provision o f vehicles and equipment to implement a general-deterrence road safety enforcement program inthe three demonstration corridors. The design, implementation, and evaluation o f the program will be supported through technical assistance andtraining provided under subcomponent A1. B.8 Road user education and awareness (US$3.17 million). This subcomponent will support a program o froad user education andpublic awareness inthe three demonstration corridors, using targeted social marketing techniques. The program will be coordinated with police enforcement activities under subcomponent B6, to maximize A road safety audit is an assessmento f the safety aspects o f road design and operation and the development o f remedial measures. 6 impact on road user behaviors. The design, implementationand evaluation o f the program will be supported by technical assistance provided under subcomponent A1 B.9Road safety educationprogram (US81.45 million). This subcomponent will support the provision of school road safety education materials, equipment, and associated training for a program of primary, secondary, and tertiary road safety education inthe three demonstration corridors. The design, implementation, and evaluationo f the program will be supported by technical assistance provided under subcomponent A1, B.10Road accident emergency treatment (US$l.61 million). This subcomponent will support the provision o fmaterials, equipment, andtraining for an emergency medical services program inthe three demonstrationcorridors. The design, implementation, and evaluation o f the program will be supported with technical assistance provided under subcomponent A1. B.I1 Operatingcosts (US82.07million). These funds will cover operations during implementationof the road safety demonstrationand awareness program, including for NTSC, TS PMU, Vietnam Register, VRA and the ministries o fPublic Security, Education andTraining, andHealth. B.12 Consulting services (US80.96 million). This subcomponent will fimdlocal consulting services and other costs associated with the operation o fproject sub-PMUs in the various project line ministries, and eligible expenses related to field supervision o f the three demonstration corridors. ComponentC. RoadSafetyMonitoringandEvaluationProgram(US$6.20 million) This component will support development o f the National RoadAccident Database System (NRADS) and a comprehensive program o fproject corridor monitoring and evaluation. This component has two subcomponents. C.1National Road Accident Database System (US84.42 million). This subcomponent will support the buildingo fthe NRADS, including the purchase o f equipment, software, andassociated systems, andtraining ($4.38 million). The buildinghousing the NRADS facility will also be upgraded under this component ($45,000). Development o f the functional requirements for the system, preparation o fbiddingdocuments, evaluation o f bids andproject implementationwill be supported with technical assistance provided under subcomponent A1. C.2Demonstration corridor monitoring and evaluation (US81.77 million). This subcomponent will support consulting services to carry out the necessary data collection andsurveys inthe three demonstrationcorridors, according to the agreed monitoring and evaluation framework. The detailed survey design and training required for effective implementationo f the monitoring and evaluation program will be supported with technical assistanceprovided under subcomponent A1 7 4. Lessonslearnedandreflectedinthe projectdesign Although the Bankhas supported road safety components inmany transport projects, including highwayprojects inVietnam, this i s its first stand-alone road safety project. The previous two IDA-supportedhighway projects inVietnam were the Highway Rehabilitation Project, completed inDecember 2001,and the Second Highway RehabilitationProject, completed in2003. The proposed project reflects the lessons leamed from these projects. The NF'TS i s based largely on output from the first project, and experience with treating blackspots under the second is included inthe design o f coordinated technical assistance for design and construction supervision, as well as the integration o f the identificationprocess with the phasing o f the NRADS. The project was designed inaccordance with the recommendations o f the World Report on Road Traffic InjuryPrevention: 1. Make road safety a political priority. This stand-alone road safety project reflects the highlevel o fpolitical support inVietnam for improving road safety. .. 11. Appoint a lead agency for road safety, give it adequate resources, andmake it publicly accountable. The project supports the government's vision o fworking through line ministryprograms but ensuring accountability and coordination through NTSC. ... 111. Develop a multidisciplinary approach to road safety. Project implementation involves the VRA and the ministries o fPublic Security, Education and Training, andHealth, which also participate inthe NTSC. iv. Set appropriate road safety targets andestablish a national road safety planto achieve them. The project will develop, through demonstration on project road corridors, a cost-effective, long-term, performance-based national road safety strategy. V. Support the creation o f advocacy groups. The project supports the creation o f the Consultative Council for the many existing road safety advocacy groups, the private sector, andNGOs to provide advice to NTSC on road safety initiatives. vi. Create budgets for road safety and increase investment indemonstrably effective road safety activities. The government has steadily increased the road safety budget inrecent years, and the project demonstrates the government's commitment to fund effective investments. The demonstration corridors will show the effectiveness o f road safety initiatives before they are replicated throughout the country. A 2003 study, Scalingup Road Safety inWorld Bank Programsinthe Africa Region, provided lessons that could be applied to other regions. The design o f this project also aligns with the conclusions o fthis study: 8 1. Strong commitment from national andlocal authorities as well as from the World Bank is a prerequisite for long-term sustainability o froad safety interventions; this commitment must be reflected inadequate hnding and in institutional consistency and continuity on all sides. .. 11. Road safety is a cross-cutting issue; multidisciplinary capabilities and multisector cooperation are needed to ensure overall effectiveness o froad safety strategies. ... 111. The design o f transport infrastructure-from the earliest planning stages- should focus on limitingcrash and injury risks and take into consideration pedestrians and nonmotorized traffic, especially the most vulnerable roadusers (children). iv. Law enforcement must target the main safety rules andmust treat road users equally to establish credibility; to do so, officers need adequate training and equipment. V. Road safety is part o f a poverty reduction strategy. 5. Alternatives considered and reasons for rejection Project component or stand-alone project. The project was originally identifiedas a US$4.2 millioncomponent o f the RoadNetwork Improvement Project (approved by the World Bank's Boardo f ExecutiveDirectors inDecember 2003). InSeptember 2003, givenVietnam's pressingroad safety problem, the government proposedthat the road safety component be expanded into a stand-alone US$25 million project (increased duringpreparation to US$31.73 million). The Banksupported this proposalbecause it offered several advantages. First, road safety components o f larger projects have had little impact on overall road safety statistics. International experience points to a need to apply a cross-sector approach that i s difficult to implement as part o f a roadproject. Second, a stand-alone project allows for establishment o f a multisector framework to address safety issues, while ensuring accountability for road safety outcomes. Policy reformor investment. The 2003 TSSR considered all aspects o froad safety in Vietnam ina long-term context, assessingsafety management practices, outcomes, and national policies, andusinginternational best practices as a benchmark. It determinedthat the policy framework inVietnam i s adequate for moving to the first phase o f investment. Italso notedthat demonstratingsuccessful techniques wouldbe an effective tool for developing policy reform initiatives that could be implemented either during or after the project. National roll-out or demonstration. Concentrating onjust three demonstration corridors rather thanimplementing activities throughout the country allows better coordination between activities for implementation as well as effectiveness, andmore efficient measurement for evaluation. Project activities buildon ongoing andplannedgovernment initiatives to avoid overlap andduplication and maximize capacity buildingopportunities. 9 Demonstratingwhich road safety initiatives work andwhich do not is also essential to developing a potential follow-on project andbuildingpolitical support for policy reform. S I L or APL. A long-term vision for improving road safety inVietnam does not yet exist, and consensus among government, NGOs, andcivil society i s needed. An S I L was therefore judged the best instrumentto demonstrate a framework and modalities for managing road safety inVietnam before a commitment was made to a particular set o f future actions and targets. Furthermore, because no systematic analysis has been conducted inVietnam to assess what could reasonably be achieved during each phase o f investment, the quantitative information needed to develop andmonitor fundingtriggers under anAPL didnot yet exist. The current project, byestablishing a long-term framework and strengthening critical relationships, will lay the groundwork necessary for development of anAPL iffurther IDA assistance is sought. C. IMPLEMENTATION 1. Partnershiparrangements(if applicable) The NTSC has agreed to establish a Consultative Council made up o f government, NGO, andprivate sector representatives to coordinate nongovernmentalroad safety activities. Although the council will not have direct project implementation responsibility, it will work with the NTSC Executive Office to advise on managerialandtechnical aspects o f the project. Donors coordinate activities and share information inregular transport sector partnership meetings. Duringpreparationthe project team heldregular meetings with local representatives of Asia InjuryPreventionFoundation, Global Road Safety Partnership, BP (Vietnam), Shell, FrenchRed Cross, WorldHealth Organization, New Zealand AID, Japan InternationalCooperation Agency (JICA), JBIC, and Asian Development Bank. 2. Institutionalandimplementationarrangements TheNTSCwill act as executing agency for the project and will be responsiblefor overall project management and oversight. The Executive Office o f the NTSC will support the NTSC incarrying out its management and oversight responsibilities. The NTSC has established a Traffic Safety Project Management Unit (TS PMU) to implement the project. The TS P M Uwill be responsible for coordinating and overseeing project implementation, including procurement, financial management, project monitoring andreporting, andday-to-day supervision o fproject activities. Eachproject participating agency (the Ministries ofPublic Security, Education and Training, andHealth, the VRA and the Vietnam Register under the Ministry o f Transport, andtheNTSC Executive Office) will establish and staff a sub-PMUto implementits part ofthe project. Sub-PMUs will be responsible for technical decisions and management of their respective subcomponents with support from local and intemational experts, as needed. Sub-PMUswill be represented on the project steering committee andwill interact on day-to-day implementation issues with the TS PMU. 10 Two supervision teams will be established to take responsibility for the day-to-day supervision of implementationo fthe demonstration corridor program, including interactionwith local authorities: one for the northern demonstrationcorridor and one for the southern demonstrationcorridors. They will report to the TS PMU. The NTSC has established a project steering committee to ensure strategic project coordination across project agencies. The project steering committee will be chaired by a vice minister o f Transport and supported by the NTSC Executive Office and TS PMU. The project steering committee will be responsible for regular monitoring and evaluation o fproject implementation and for guidingthe overall strategic direction o f the project. Representatives come from all project participating agencies, the State Bank o f Vietnam, the Ministry o f Finance, the Ministry o f Planningand Investment, and the Ministry o f Transport's Planning and Investment Department. The proposed structure for project implementationis depicted inFigure 1. I NationalTraffic I Traffic Safety Project ProvincialTraffic Consultative I Management Safety Department Council Unit I I A' Demonstration Sub-PMUs _ _ _ _ _ _ _ _ _ _ _ Corridor Supervision Reportingrelationship .................... Liaison,advisory, or coordination relationship Figure 1:Project OrganizationalStructure The following additional government agencies will have supporting roles: i. TheMinistryofNaturalResourcesandEnvironment,withsupportfromlocal authorities, will ensure compliance with all government instructions relating to environmental protection andwill monitor implementation o f the EMPwith support from the independent monitoring agency retained by the TS PMU. 11 11. The Ministryo f Finance will allocate adequate .. funds to the project on a timely basis andwill deposit government counterpart funds into the executing agency trust account for the project. 111. People's Committees at ... the provincial level, through local resettlement committees, will assist the TS PMUinland acquisition andresettlement. iv. Provincial traffic safety departments and local traffic safety committees will work with the TS PMUandcorridor supervision teams to implement Component B. 3. Monitoring and evaluation of outcomes/results The project will be monitoredusinga comprehensive monitoring and evaluation framework, described inthe Project ImplementationPlan (PIP)5.The objective o f monitoring and evaluation will be to assess the effectiveness o f project interventions and make necessary changes to ensureproject objectives are achieved. Monitoring and evaluation will focus on the demonstrationcorridors although the procedures apply to all levels o f the roadnetwork. The project has the following four levels o f monitoring and evaluation: i.Overallprojectimplementation-Key development impact indicators will be used for measuring progress inreachingproject objectives, key indicators will be used for monitoring physical implementationprogress, andkey financial indicators will be usedto assess the project's budgetary and financial health. ii.Projectsocialandenvironmentalaspects-The monitoring framework i s described inthe social and environmental assessments. iii.Effectiveness ofprojectinterventionsonroadaccidents,fatalities, andinjurieson demonstration corridors. iv. Effectivenesso findividual blackspot andblack route treatments. The project steering committee and TS PMUwill be responsible for monitoring project implementationwith support from the implementing agency. Every six months, the TS PMUwill issue a summary report to the NTSC and the World Bank, tracking changes inroadsafety andrelatedvariables such asprimaryoutcomes, intermediateoutcomes, and intervention levels. The TS PMUwill be assisted bythe technical assistance consultants employed for each agency inpreparing this report, synthesizing data from the agencies as well as reports from design, supervision, and social and environmental monitoring consultants. TS PMUand VRA will prepare annual work programs andbudgets for the blackspot treatment program for the Bank's prior review, as well as regular supervision reports duringthe execution o fcivil works. Vietnam Road Safety Project, Project ImplementationPlan, Annex 16-Monitoring and Evaluation Guidelines 12 Allmonitoring informationwillbe disaggregated annually to the project and demonstration corridor levels andwill be shared with provincial authorities. Each o f the annual reports will briefly describe exceptional events and conditions identified duringthe monitoring process as well as indications o f the actions to be taken inresponseto eachofthese events. ThePSCwill review the annualand six month monitoring reports andrecommend actions to be taken. The project will hold a project launch workshop about the time o fproject effectiveness. 4. Sustainability Sustainability o fthe project depends primarily on the project's successful demonstration o f cost-effective approaches to improving road safety, andon the government's commitment to buildingthe accountability and capacity o f relevant ministries. The sustainability o fphysical works will requirethat road safety audits andblackspot identification and treatment become an integralpart o fNRADS development and application. Finally, the government's commitment to developing andmonitoring a long- term national safety strategy andto fundingroad safety initiatives will be needed. 5. Critical risksand possible controversialaspects A possible controversial aspect o fthe project is traffic safety enforcement. Worldwide experience with intensive traffic enforcement i s mixed, particularly when enforcement i s seen as corrupt, aggressive, or intrudingonpersonal freedoms or rights. At the same time, a general consensus i s emerging that other road safety interventions, particularly road user education andpublic awareness campaigns, have little effect on reducing road accidents unless they are supported by rigorous and consistent enforcement o f traffic laws. The risk for controversy about project traffic safety initiatives is low, however, because the project will be implementedinthe context o f already strict enforcement and will concentrate on improving, rather than increasing, enforcement. The project will also support public education and awareness campaigns about the importance o f traffic laws on road safety. Critical Project Risks Risk Risk Level Risk Mitiaation Agency accountabilities unclear H NTSCwill serve as executing agency and reportto the National Assembly and the deputy prime ministerabout project performance.A projectsteering committee has been establishedto clarify accountability and ensure coordination. Multi-agencysupervision teams will be used to implementand monitor demonstration corridor programs. 13 Risk Risk Level Risk Mitigation Enforcementineffective and/or lacks public H Technicalassistanceis providedto support support. developmentof improved enforcementstrategies based on NRADSaccident data and international best practice.Publicawareness and informationsharing of corridor results will build public support. Improperidentificationand designof M Processto be tested in demonstrationcorridorsand blackspots. identificationto be based on road accident database. NRADS is not implemented in a way that M The projectsteering committeewill establishand fully meets all user needs and is not kept up overseefunctional requirements. Biddingwill be carried to date. out using the Bank's Standard Bidding Documentfor two-stage bidding of ITsystems, which is considered internationalbest practice and has been used successfullyin previous Bank-financedproject in Vietnam. Lack of sustainability. M Demonstrationapproach is meantto garner commitment for new approaches. A second phase road safety plan, includingfinancing plan, will be developed. Professionalskill shortages in sub-PMUs M Projectfunds will support hiring of local consulting are not addressed. services to supplementcurrent skills. On the job training will be provided by NTSC advisory consultant. Effective roles for NGOs and the private M A ConsultativeCouncil to support NTSC technical and sector are not defined. managementdecision makingwill be established beforethe projectstarts, with representationfrom public and NGOs active in road safety in Vietnam. Lack of policy reform in key areas of road N The projectwill work within the existing policy law, such as drunk driving, helmet use, etc. framework. Demonstrationis seen as effective means for further reform. Projectcoordinationand management S A detailed PIP has been developed and will be formally arrangements are ineffective. adopted by each project participating agency as a condition of project effectiveness. Project advisory services will be provided to the implementingagency and NTSC to support implementation. OVERALL RISK LEVEL M Risk Rating - H (High Risk), S (SubstantialRisk), M (Modest Risk), N (Negligible or Low Risk) 6. Creditconditionsandcovenants Besides the standard requirements, the following conditions have been set for credit effectiveness: i.NTSChasfinalizedandadoptedthePIP. ii.TSPMUhasestablishedacomputerizedfinancialmanagementsystemforthe project, including design o f the chart o f accounts and installation of software to produce financial monitoring reports. iii.TSPMUstaffhasreceivedtraininginthefinancialmanagementsystemandin the Bank's financial management, disbursement, andprocurement procedures. 14 iv. A financial management officer and a full-timeaccountant havebeen appointed at TS PMU. v. The Consultative Council andthe sub-PMUshavebeen established. vi. The PrimeMinister has instructedNTSC andthe participating agencies to develop and implementa detailed mechanism for sharing information about improvingroad safety. vii. NTSC has trainedthe staff of all participating agencies on procurement. D. APPRAISAL SUMMARY 1. Economic and financial analyses Project beneficiaries include roadusers, roadside communities, andbusinesses inthe demonstration corridors, and to a lesser extent, those outside the corridors who will subsequently benefit from improvedmanagement o f the sector. The main direct economic benefits o f the project come from the expected reductions in social costs resulting from reduced numbers and severity o f fatalities and injuries caused byroad accidents. These benefits include: i.Reductionintheincidenceandseverityofroadaccidentinjuryanddeathandthe associated cost to individuals and the Vietnamese economy; ii.Costsavingsfromgreatereffectivenessofroadsafetyinterventions, whichstems from increased institutional capacity to monitor, evaluate, and manage road safety at both the national androadnetwork levels; iii.Reductioninthepublicresourceswastedbyroadaccidents,includingtemporary or permanent loss and diversion o f humanresources, consumption o f medical resources, and damage or destruction o fproperty; and iv. Improved efficiency o froadtransport due to reducedeconomic inefficiencies resulting from road accident trauma. The main costs of the project are the costs o f civil works (blackspot treatments) and purchase of vehicles, equipment, andmaterials. Economic costs total approximately US$29.5 million as compared with the total financial cost o f the project o f US$35.89 million. This does not include benefits that couldnot be valued directly inmonetary terms, and were therefore not included inthe cost-benefit analysis. Suchbenefits include improvements inthe administrative, legal, and governance arrangements inthe long term as the result o f capacity buildingacross the transport, health, education and public security sectors. The estimated net present value o f the project, usingthe very conservative accident cost values documented inTechnical Note No. 6 from the Vietnam Road Safety Improvement Study carried out under HRP1, the currently reported ratio o f injuries to fatalities, and 15 best estimates o fthe effect o fproject interventions i s US$23.13 million, yielding an economic internal rate o f return (EIRR) o f 34 percent. Sensitivity analysis and switching values show that the economic justification for the project i s robust. Details o f the economic and financial analyses are provided inAnnex 9. 2. Technical The project raises no major technical issues. The technicalrequirements for implementation, although challenging, are well-grounded ininternational and local experience, and a team o f technical experts will assist inmeeting them. The procurement o f informationtechnology systems will follow the Bank's standard biddingprocedures for two-stage biddingprocess, which has been shown to improve technical outcomes for complex IT system development. The following maintechnical considerations were incorporatedinto project design: 0 Design and implementation arrangements for the NRADS; 0 Identification and selection o fblackspots and design and delivery o f interventions; 0 Development andimplementation o f improved general-deterrence traffic- enforcement strategies; and 0 Improvement o f emergency medical services. 3. Fiduciary The World Bank team conducted a financial management assessment duringproject preparation inNovember 2004 (see project files). The scope o f the work was set out in the Assessment o f Financial Management Arrangements inWorld Bank-financed Projects-Guidelines to Staff, issued bythe FinancialManagement Sector Board and dated October 15,2003. The objective o f the review was to assess the suitability o f the project financial management system as required bythe Bank under OP/BP 10.02with a view to implementing the proposedproject. The assessment concluded that the implementing agency, the TS PMU, had limited experience inmeeting financial management requirements o f the project because it does not have experience implementing an IDAproject. The following weaknesses were identified: (i)lack o f adequately skilled staff; (ii) o f suitable accounting software; lack and (iii) lack o f a financial management manual. Inaddition, the TS PMUdoes not have a computerizedaccounting system to produce the financial statements and monitoring reportsrequired by IDA. To remedy these shortcomings, an actionplanwas developed and agreedwith the implementing agency (see Annex 7)andwill be implemented before credit effectiveness. A special account will be opened for TS PMU. Traditional disbursement techniques will be used. Independent auditors acceptable to IDA will be retainedto audit project accounts on an annual basis inaccordance with IDA policy. 16 4. Social The NTSC carried out extensive consultationwith communities along the selected roads duringthe social assessment survey (see Social Assessment datedNovember 2004in project files). The social assessment found that respondents to the social survey expected the main social development outcomes o f the project to be improved pedestrianandroad user safety. Because traffic accidents are the leadingcause o f death among children, the project is expected to benefit them and other vulnerable groups such as women andthe elderly inparticular. The social assessmentreflects the stakeholders' comments and suggestions. Potentialnegative social impacts include small-scale land acquisition andresettlement. A detailed census and an inventory o f affected assets have been completed for the first-year work program (treatment o f eight blackspots), which found that at one blackspot site (Nghe An province) 10households (52 people) will lose agricultural andresidential land, structures, trees, andcrops inthe first year o f works implementation at one site. None of the displacedpeople will be severely affected or require relocation. An abbreviated resettlement action plan (RAP) for the first year blackspot requiring land acquisition has been prepared, cleared by the Bank, and disclosed publicly. For subsequent years, blackspots to be treated have yet to be identified. However, impacts will be similar to those o fthe first-year program. To address potential resettlement issues insubsequent years, the government has adopted a project RPF, and RAPSwill bepreparedas work programs are identified (see Annex 10). The TS PMU andprovincial and district authorities will work with provincial committees to ensure implementation o f the RAPSandwill be responsible for monitoring social development outcomes. The project will monitor social development impacts during implementation using the project monitoring and evaluation framework (see Section C3). An independent monitoring agency will monitor compliance. An evaluation is proposedtwo to three years after completion o fresettlement to determine whether the project-affected people's incomes and livelihood have improved or at least beenrestoredto pre-project levels. Additional assistance will be provided to those who have not been able to restore their incomes. 5. Environment The project has been rated as an environmental category B.An environmental assessment, prepared inaccordance with World Bank policies, found that the project will have a positive long-tenn environmental impact because it will substantially improve road safety inthe demonstration corridors. Its negative environmental impacts are expected to be minor and limited to the blackspot treatment component, which includes small civil works such as installation o f guard rails, signage, and rumble strips; construction oftraffic islands and segregated traffic lanes; and minor road widening and improvementsto accommodate pedestrian paths and improve site distances and curvature. 17 IDA field investigations confirmedthe findings ofthe environmental assessment, finding no undisturbedhabitat o f special-status wildlife inthe project area or immediate environs. The project proposes no bypass, realignment, or other action inundisturbed areas. N o long-term impact to area soils from increased pollutant levels i s anticipated. Changes to hydrological characteristics are not considered significant. N o Ethnic Minoritiesreside in the project area. An EMP, taking into consideration the findings o fthe environmental assessment, has also beenprepared. The EMPincludes a policy framework and guidelines for environmental assessment and impact mitigation for annual work programs as they are identified. The policy framework outlines studies and actions that may be requiredto ensure that a work package contains the environmental and social information needed to determine ifthe works are likelyto have significant environmental impact or require land or asset acquisition or resettlement, and that the works meet the Bank's environmental and social requirements. Roadworks with minor impacts will use the standard operating procedures outlined inthe EMP. It is not expected that any works will have serious environmental impacts. The TS PMUand provincial and district authorities will be responsible for ensuring implementation o fthe EMP, mainly by monitoring o f contractor activities. The environmental assessment andEMP specify civil works contract provisions governing the sources o f constructionmaterials (such as sand and gravel) and the means o f transport, measures for timely site stabilization and erosion control, and use o f pesticides or chemicals to control vegetation. The EMP also includes stipulations on spill prevention and cleanup, dust andnoise control, traffic management during construction, safety enhancement, and construction site cleanup and rehabilitation. Although no cultural relics have been identified, the contract documents will include provisions for handling chance finds o frelics. The cost o f implementing the EMP at the work-package level will be included inthe cost o f civil works contracts. The EMPrequires air, water, andnoise monitoring. Reporting o f environmental parameters (e.g., dust, safety, and sanitation) will be included insite diaries routinely maintainedby the construction supervision consultants and environmental units o f the implementing agencies andreported inprogress reports. Frequencies, parameters, locations, and methods are detailed inthe EMP. Reporting on environmental monitoring will be standardized, and monitoring data will be submittedto local environmental authorities. The NTSC, with assistance o f a consulting team, carried out extensive consultation with communities along the selected roads duringthe preliminary identification o fblackspots (see Report on Public Consultation, November 2004, inproject files) Comments and concerns raisedduringpublic consultation were taken into account indetermining an approach to the project environmental assessment and EMP, location ofblackspots to be treated, blackspot treatments, andmonitoring framework. 18 6. Safeguard policies Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OP/BP/GP 4.01) [XI [ I NaturalHabitats (OPBP 4.04) [I PestManagement (OP 4.09) [I Cultural Property (OPN 11.03, beingrevised as OP 4.11) [ I InvoluntaryResettlement (OP/BP 4.12) [XI Indigenous Peoples(OD 4.20, being revised as OP 4.10) [I Forests(OP/BP 4.36) [ I Safety o fDams (OP/BP 4.37) [I Projects inDisputedAreas (OP/BP/GP 7.60)* [ I Projects on Intemational Waterways (OP/BP/GP 7.50) [ I 7. Policy Exceptions andReadiness Nopolicy exceptions are required. The project i s ready for implementation.Engineering designs for blackspots to be implementedinthe first year oftheproject havebeenpreparedandagreedwith the Bank. All of these willbeimplementedusingforce account or shoppingproceduresbecauseof their small size and dispersed nature andthe needto quickly launch the safety initiatives on the demonstration corridors. Terms o freference for all project-related technical assistance have been prepared and are includedinthe draft PIP. * By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas. 19 Annex 1: Country and Sector or Program Background VIETNAM: Road Safety Project The government's development objectives, as well as concrete actions to achieve them, are presented inthe country's Comprehensive Poverty Reduction and Growth Strategy (CPRGS), which i s based on its medium-term (2001-2010) development strategy. The CPRGS has three pillars: (i) highgrowth throughtransition to amarket economy; (ii) an equitable, socially inclusive, and sustainable pattern o f growth; and (iii) the adoption o f modernpublic administration, legal, and governance systems. Vietnam has hadone o f the fastest growing economies inthe world inrecent years, and poverty has declined rapidly inthe past five years. Despite these gains, an estimated 29 percent o f the population livedbelow the poverty line in2002. Furthermore, a large proportion o f the population livesjust above the poverty line and is vulnerable to falling into poverty with even minor changes ineconomic circumstances. Economic growth has been accompanied by traffic growth. Since 1990, the number o f automobiles has increased two-and-a-half times and the number o f motorcycles has increased eight-and-a-halftimes. Yet motorization levels inVietnam are still low, indicating that vehicle ownership will continue to increase rapidly for many more years. Vehicle stocks have risen 5-10 percent per year recently. The transport safety situation inVietnam is poor and deteriorating. Road fatalities increased 39 percent in2000/2001 and22 percent in2001/2002. The number o f fatalities from road accidents inthe first two months o f 2004 is 51 percent higher than inthe same period o f 2003.Vietnam has an official fatality and injuryrate o f over 12 per 10,000 vehicles, which gives it one o f the most dangerous road safety environments inthe region. Fatalities are particularly common among young motorcycle users. A recent World Bankhealth sector review inVietnam showed that intracerebral hemorrhage (common to motorcycle accident victims) has become the major cause o fhospital death inVietnam.6Mostmotorcycle accident victims are young, andhospitalstatistics suggest that between 30-50 percent die as the result o f their injuries. Recent Road Safety Developments Vietnam's 2002-20 12National Policy on Accident and InjuryPrevention notes that injuries relatedto road accidents are notjust a transport sector issue, but part o f a wider national injurycrisis. Transport safety, especially road safety, therefore has become a highpriorityfor the government. Coordination arrangements havebeenput inplacewith the establishment o f the National Traffic Safety Committee (NTSC), demonstrating the government's commitment to improving cross-sector dialogue betweenthe transport, health, and education sectors. Vietnam- Growinghealthy:a reviewo fVietnam's health sector, World Bank. 2001 21 The government also prepared the National Program for Traffic Safety (NPTS)' andthe Vietnam Road Sector project. The NPTS covers the period 2001-2005 and has set the objective o f reducing the annual growth rate o ftraffic accidents from 8 percent to 4 percent by 2005. It calls for the following policy andphysical interventions: 0 Education andpublicity campaigns for traffic safety improvement; 0 Application o froad safety audits on newlyimproved, upgraded or built roads; 0 Definition and treatment o fblackspots; 0 Development o f a traffic accident reporting and analysis database; 0 Replanning the system of training and licensing o f drivers; 0 Forming andbuildingup o f first-aid stations for traffic accidents; and 0 Mechanizing andmodernizing the system for registering motorized vehicles. These interventions are funded by government budgets, driver training and licensing fees, insurance, and official development assistance. Transport Safety Strategy Review In2003, the World Bank conducted a transport safety strategy review (TSSR) to assess government programs and approaches to road safety; set out short-, medium-, and long- term strategies to address deterioratingroad safety inVietnam; and guide World Bank investments for the next 15 years. InJune 2003, the World Bank and the government discussed the findings o f the TSSR and the main issues inthe sector. Capacity and accountability. The most pressing need inroad safety is to strengthen the capacity, resources, and skills o f the NTSC and its executive office. The legal framework restricts NTSC's role to coordination, leaving responsibility for implementationwith central government agencies, other relevant organizations, andprovincial andmunicipal People's Committees, which limits accountability. Furthermore, funding streams are uncertain, andmonitoring i s not carried out. Donors, private businesses, and nongovernmentalorganizations (NGOs) also develop projects, but these are not incorporatedinto a cohesive program. The NTSC executive office has recently received increased funding and additional responsibility as road safety has become a pressing political and social issue. Knowledge and awareness of road safety. Because motorization inVietnam has increased so rapidly, the public sector response has emphasized basic traffic management functions such as driver licensing andvehicle inspection and registration. International experience, however, suggests that suchprograms, although important for general standards settingand administration, have only a marginal impact on accident and fatality rates inthe short term. To curb rapidly rising accident and fatality rates, targeted, cost- effective measures that have an immediate impact, such as speed-limit and drunk-driving National Programfor Trafic Safe@,2001 -2005 Period, Socialist Republic o fVietnam, Ministry of Transport, Hanoi, June 2001 22 enforcement, separation o f traffic, and motorcycle helmet law enforcement, must be identified and implemented. Furthermore, public awareness o froad safety must change. For example, alcohol appears to be a bigger traffic safety problemthan is officially acknowledged, but little attempt has been made to deter drunk drivers. Furthermore, laws requiring motorcycle helmets and imposing speed limits are seen as ineffective or inconflict with personal freedom. And finally, inthe face o fpoor traffic behavior, traffic police also lack knowledge and incentives for developing more effective policing strategies, have limitedresources, and see their job largely as the apprehension o f offenders rather than the deterrence o f unsafe behavior. Framework for long-term action. Despite its breadth, the NPTS lacks a method for setting priorities or an effective framework for monitoring and evaluation. Experience from other countries has shownthat improving road safety requires a consistent 20- or 30-year effort. The NPTS i s a 5-year strategy andtherefore should be seen as the first phase o f a longer-term strategy. Business planning processes and financial management and performance monitoring systems must be put inplace to support such a long-term strategy, and the first phase o f such a strategy should lead to consensus among stakeholders and public sector agencies on how to proceed with a fully funded, long-term action planbased on demonstrably successful interventions. A financing plan for implementing the strategy should also be specified. Long-term traffic safety framework The TSSR proposes a three-stage framework for Bank-funded road safety interventions inVietnam to achieve the following vision: "Within 15 years Vietnam willbuildarobust safety management system that produces best practice safety outcomes on a controllable andsustainable basis." Summaryof Road SafetyStrategy Program Phase Objective Shortterm (next Take control of the traffic situation by improvingsafety standardsand rules and related 5 years)- compliance in targeted high-risk corridors Establishment * Address legislativeamendmentsto the RoadAct Begindevelopingcomprehensiveanalysis tools Review all elementsof the safety managementsystem Prepare roll-outstrategies for the next phase Mediumterm Put in place a robust performance managementframework for all participating (next 10 agencies Years)- Growth Implementthe findings of short-termreviews Initiatesafety programssystematicallyacrossthe country 23 Phase Objective Long term (next Establishan independent national safety agency and dedicated funding arrangements 15years)- Continueto implementsafety programsand devolve performancemanagementto the Consolidation district level Improvemanagementand operational efficiencies Upgradeand extend safety programsand seek opportunitiesfor future safety innovations Interms o fsafety standards, compliance, andinstitutional capacity, Vietnam's circumstances are not unique. Limitedbudgets and a shortage o f road safety skills mean that lower standards o f safety are the norm inmany low- and middle-income countries. The proposed strategy aims inthe short term to dramatically lift road user and vehicle compliance with current safety standards, while related measures are taken, withinbudget constraints, to improve these standards inthe medium to long term. Each five-year phase creates the knowledge and experience necessary to move to the next phase. For example, before national, city andprovincial performance targets can be set, data analysis tools must be built and quality data collected. Similarly, sustainable funding mechanisms cannot be identifiedbefore cost-effective approaches havebeen identified and robust business planning processes and financial management systems established. Integral to the strategy's design i s the need for a break-through process inthe first phase to address the urgency o f the safety situation inVietnam andmobilize all partners and stakeholders whose participation i s critical to the achievement o f the strategy's vision. Without such a process it would be impossible to generate the experience and momentum necessary to overcome the inertia o f current institutional arrangements and the apparent indifference o f roadusers to the risks they face on Vietnam's roads. The Vietnam Road Safety project aims to implementthis break-through process. Vietnam Road Safety project The project aims to bring about a substantial shifl from low levels o f road user compliance with safety standards and rules to considerably higher levels o f compliance, while starting on the work that aims inthe medium to longterm to improve safety standards andrules and extendtheir application, further improve compliance ina robust performance management framework, and consolidate implementation arrangements. Strengthen traffic safety coordination among government ministries and agencies. The project strengthens the NTSC Executive Office's ability to measure, monitor, and evaluate road safety and coordinate the road safety activities andprograms o f government agencies, NGOs, andthe private sector. The project also supports the NTSC's establishment o f a consultative council that includes NGOs and private sector organizations to facilitate their involvement in road safety initiatives. Improve enforcement of road safety laws. The government has recently called for more rigorous enforcement o f traffic laws and approved a doubling o f the 24 number o ftraffic police. The project provides a sharper focus, equipment, and tactics for effective use o f traffic police resources. 0 Increase publicity and education about the effects of road accidents and behavior to reduce the incidence and severity of road accidents. The project supports publicity and education efforts by reviewing content andmeans o f delivery, including school-based road safety education, and developing and providingimproved materials and training. 0 Upgrade facilities for vehicle and driver testing and licensing. The project supports the upgrade o f management, facilities, and equipment for vehicle testing and inspection andtraining, testing, andlicensing drivers byreviewing management arrangements, facilities, procedures, and equipment, preparing an updated national development plan, andproviding equipment. 0 Improve emergency medical services. The project supports the Ministry o f Health's modernization o f emergency medical services by providing assistance for a review o f the emergency medical situation and preparation o f a long-term development plan, providing emergency medical equipment, and training traffic police to administer first aid. Although international experience will be usedto guide activities implemented on the demonstrationcorridors, the safest countries have managed road safety improvements over a longer and more manageable time. Vietnam's situation is different, and only a learning-by-doing approach will identify safety solutions tailored to local circumstances andsustainable on a longer-term basis. 25 Annex 2: Major RelatedProjectsFinancedby the Bank and/or otherAgencies VIETNAM: RoadSafety Project Bank-financed Projects Supervision Ratings Ongoing Sector Issue IP* Dot MekongTransport and Flood Increasethe efficiencyof the surfacetransportation MS S Protection (Cr.3448-VN) system in the Mekong Delta Second Rural Transport Project Improveaccess to remoterural areas, sustainadequate S S (Cr.3306-VN) maintenance UrbanTransport Improvement Project Strengthen decentralizedauthority, expand capacity, S S (Cr.3125-VN) and improveoperatingconditions of urbantransport Road Network ImprovementProject Improveroad managementand maintenancefunding S S (Cr.3843-VN) for nationalroads OED Evaluation Out- Sustain- ID Completed Sector Issue come ability Impact Rural Transport Project (Cr.2929-VN) Improveaccess to remote rural areas, sustain adequate S S S maintenance Highway RehabilitationProject Reducerehabilitationbacklog; build institutional S S S (Cr.2549-VN) capacity; review and improve regulation,standards, and traffic safety; strengthen road maintenanceoperations Second Highway Rehabilitation Reducerehabilitationbacklog; increasethe volume of S S S Project (Cr.NO13-VN) periodicmaintenance;build institutionalcapacity; improve regulationand improve traffic safety; improve rural access; strengthen environmentalprotection Pipeline Sector Issue MekongTransport Infrastructure Development Project Third RuralTransport Project HS-Highly satisfactory;S-Satisfactory; MS-Moderately satisfactory; MU-Moderately unsatisfactory; U-Unsatisfactory; HU-Highly unsatisfactory;NR = Not rated *-Implementation progress:t -Developmentobjective 27 Other DevelopmentAgencies Agency Project Status Duration ADB Second Road Improvement Completed 1997-2003 Third Road Improvement Ongoing 1998-2005 GMS: Ho Chi Minh City-Phnom Penh Highway Ongoing 1998-2005 GMS: East-West Corridor Ongoing 2000-2005 Provincial Roads Improvement Ongoing 2001-2006 Central RegionTransport Network Preparation 2005-201 0 GMS: Kunming-HaiphongCorridor Preparation 2005-201 0 GMS: Southern Coastal Corridor Conceptualization 2006-201 1 Implementationof Sector Development Policy (Road Informationand ManagementSystem) Consultants being recruited 2004-2005 JBlC National Highway No. 5 ImprovementProject Ongoing 1996-2004 National Highway No. 1 Bridge RehabilitationProject Ongoing 1996-2005 HaiVan Tunnel ConstructionProject Ongoing 1997-2007 National Highway No. 10 Improvement Project Ongoing 1998-2007 National Highway No. 18 Improvement Project Ongoing 1998-2008 Second National Highway No. 1 Bridge Rehabilitation Project Ongoing 1999-2004 Transport InfrastructureDevelopment Projectin Hanoi Ongoing 1999-2006 Saigon East-West Highway ConstructionProject Ongoing 2000-2007 Binh BridgeConstruction Project Ongoing 2000-2007 Red River (Thanh Tri) Bridge ConstructionProject Ongoing 2000-2008 Bai Chay Bridge ConstructionProject Ongoing 2001-2008 National Highway No. 1 Bypass Road ConstructionProject Ongoing 2001-2009 Can Tho Bridge Construction Project Ongoing 2001-2009 Third National Highway No. 1 Bridge RehabilitationProject Ongoing 2003-2009 National Highway No.3 ImprovementProject Proposed 2005- JlCA Traffic Safety Program Ongoing 2004-2005 WBlDFlD Second RuralTransport Project Ongoing 2000-2005 Third Rural Transport Project Proposed 2005-201 0 JBIC/DFID Transoortsector coordination Desian TBC NZ/DFID Transport Safety DesignWork Design TBC 28 Annex 3: Results Framework and Monitoring VIETNAM: Road SafetyProject ResultsFramework PDO Outcome Indicators Use of Outcome Information Reducethe rates of accident, injury, Ratesof accident, injury, and To gauge the effectivenessof the and death associated with road fatalities on project road corridors jovernment's road safety programs transport through physical reduced and interventions improvementand institutional developmentto strengthenthe managementof road transport safety Intermediate Results Results Indicators Use of Results Monitoring ComponentA ComponentA Component A: Establishmentof a framework for Developmentand government To gauge effectivenessof project achieving long-term road safety approval of a national road safety activities and to strengthenthe performancetargets strategyspecifyingachievable government's commitmentand the performancetargets and a financing capacityof NTSC to improve road plan safety Component B: ComponentB : ComponentB: Increasedpublic and official Driver behavior and compliance To gauge effectivenessof project knowledgeand awareness of road with vehicle and licensingstandards interventionson demonstration safety and of short-termsolutionsto on project corridors improved corridors improving road safety ComponentC: ComponentC: ComponentC: Enhancedofficial capacity and Monitoringand evaluation To guide implementationof the accountabilityfor road safety framework implementedin project demonstrationcorridors. outcomes corridorsand used to prioritize road safety interventions,and National RoadAccident Database System establishedand updated regularly . 29 Arrangements for Results Monitoring TargetValues Data Collection and Reporting Responsi- Frequency Data bilityfor Base Year Year Year Year Year and Collection Data Outcome Indicators line 1 2 3 4 5 Reports Instruments Collection Deaths andinjuries in demonstrationcorridorsreduced: Accident rate per 100 39 29 millionvehicle km Fatalityrate per 100 million 13 6 vehicle km Injury rate per 100 million 130 62 vehicle km Target Values Data Collection and Reporting Responsi- Frequency Data bilityfor Results Indicatorsfor Base Year Year Year Year Year and Collection Data Each Component line 1 2 3 4 5 Reports Instruments Collection ComponentA Performance-basednationalroadsafety strategy (phase 2), including financingplan, developedand approved by Government Preliminarydraft 1 developedand reviewed by stakeholders Finaldraft report 1 developed and available for public review and comment Finaldraft approved by 1 aovernment Component B: Key roadsafety behaviorsandcompliancewith vehicleandlicensing standardsinproject demonstration corridors improved. % of traffic exceeding 30 postedspeed limits % of motorcycleriders 25 wearing helmets; % of motorcycledrivers 95 licensed; % of commercialvehicle 95 operators licensed; % of vehicles in 90 demonstration corridors passingfirst time inwection 30 TargetValues Data Collection and Reporting Responsi- Frequency Data bilityfor Results Indicators for Base Year Year Year Year Year and Collection Data Each Component line I 2 3 4 5 Reports Instruments Collection Component C: Monitoringand evaluationframeworkimplementedinproject demonstrationcorridors and usedto prioritize roadsafety interventions, andNational RoadAccident DatabaseSystemestablishedand updated regularly Numberof biannual road 2 4 6 7 safety reports prepared in accordancewith project monitoringand evaluation guidelines; Numberof annual reports 1 2 3 4 on effectiveness of treatments and interventionsprepared in accordancewith project monitoringand evaluation guidelines; Percentageof NRADS 10 20 60 100 completed 31 Annex 4: DetailedProjectDescription VIETNAM: RoadSafety Project The project has three components: Institutional andCapacity BuildingProgram; Road Safety DemonstrationandAwareness Program; andRoad Safety Monitoring and EvaluationProgram. ComponentA. InstitutionalandCapacityBuildingProgram(US$7.84 million). This component will provide technical assistance andproject implementation support to strengthen the management and technical capacity o fthe NTSC Executive Office, the newly created project management unit (TS PMU), the sub-PMUs, and corridor supervision teams. This component will also support the preparation o f a performance based national road safety strategy, including a financing plan.The following subcomponents will be supported under this component: A.1 Capacity Building and Implementation Support (USS5.04 million). This subcomponent will finance an integratedpackage o f technical assistance to support capacity buildingandimplementation across all project components and implementing agencies. The following areas will be supported: (i) management and strategy support to the NTSC and its Executive Office; (ii) implementation support to the TS PMU; (iii) technical and specialized studies to support sub-PMU teams; (iv) training; and (v) development o f a targeted and fully budgetednational road safety plan. A.2 Safeguards Implementation Support and Independent Monitoring (USSO.10million), This subcomponent will provide consulting services and equipment as needed to support the TS PMUwith the implementation o f the project Environmental Management Plan (EMP) andResettlement PolicyFramework (RPF), and employ anindependent agency to undertake monitoring o f compliance with project resettlement safeguards and the RPF. A.3 NTSC equipment to support implementation (USSO.65 million). This subcomponent will provide funds to purchase office equipment, vehicles, andother goods to ensure that theNTSC Executive Office, TS PMU, and the sub-PMUs have adequate facilities to carry out the project. A.4 Operating Costs and Training (USS2.05 million). Fundswill be usedto cover NTSC's operating costs during implementation (US$1.5 million) andprovide training relatedto project implementation (US0.55 million). These costs will be fully financed bythe Government o f Vietnam. ComponentB. RoadSafety Demonstrationand Awareness Program (US%20.89million) This component will develop and implement comprehensive, integrated safety programs along three high-risk national road corridors. The three Demonstration Corridors that have been identified for inclusion under the project are: (i) National Highway 1between 33 Hanoi and Vinh (28 1km); (ii) National Highway 1between H o Chi MinhCity and Can Tho City (151km); and (3) Highway 51from DongNai province to Vung Tau (80 km). Ifproject funds allow, successful elements ofthethree DemonstrationCorridorswillbe implemented on other highway corridors. The following subcomponents will be supported under this component: B.1Blackspot treatment program (US$3.75 million). This subcomponent will support treatment o f nominatedblackspots within the three Demonstration corridors. Sites to be treated inyears 2 to 4 o f the blackspots program will be selected by the VRA, supported bytechnical assistance providedunder subcomponent A1. B.2 Resettlement (US$O.81 million). This subcomponent will fund resettlement andland acquisition costs associated with the implementationo f the blackspot program within the three Demonstration Corridors. B.3 Design and construction supervision (US$O.14million). This subcomponent will provide technical assistance to VRA to support design and supervision services provided by subcomponent B1,above. These services will include engineering surveys, construction drawings andpreliminary designs, specifications, cost estimates, and biddingdocuments for blackspot treatments. They will also include construction supervision services, to ensure efficient andhighquality execution o f the works. B.4 Vehicle inspection computer system upgrade (US$l.55 million). This subcomponent will support the Vietnam Register to upgrade its national vehicle inspection IT system andprovide specializedvehicle inspectionequipment at three primarynational vehicle inspection stations (Hanoi, H o Chi MinhCity andVinh Long). Itwill also support the provision o f equipment invehicle testing stations and equipment to conduct mobile vehicle inspectionsinthe three DemonstrationCorridors. This subcomponent will be supported by technical assistance provided under subcomponent A1. B.5 Driver training and testing (US$1.25 million). This subcomponent will support the VRA through the provisiono f equipment to improve the driver training centers at Chi LinhandDongNaiprovinces andrelatedfacilities, inaccordance withthe recommendations o f the national review o f driver training, testing and licensing systems that will be carried out under subcomponent A1, B.6Road safety audits and safety inspection (US$O.29 million). Provides consulting services for VRA inroad safety audit and blackspot or black route identification and treatment: (i)developing, formalizing, and applying procedures; (ii) working with the Traffic Police to specify data and evaluation andmonitoring requirements; and (iii) identifying and investigating blackspots andblack routes, designing treatments, and monitoring and evaluationo f treatment effectiveness. B.7Demonstration corridor safety enforcement (US$3.85 million). This subcomponent will support the Traffic Police through the provision o fvehicles and equipment to implement a "general deterrence" road safety enforcement program inthe three 34 DemonstrationCorridors. The design, implementation and evaluation o f the program will be supported through technical assistance andtrainingprovided under subcomponent A1. B.8 Road user education and awareness (US$3.17million). This subcomponent will support aprogram o froaduser education andpublic awareness inthe three Demonstration Corridors, usingtargeted social marketingtechniques. The programwill be coordinated with police enforcement activities under subcomponent B6, to maximize impact on key roaduser behaviors. The design, implementation and evaluation of the program will be supported bytechnical assistance provided under subcomponent A1. B.9Road safety educationprogram (US$1.45million). This subcomponent will support the provision of school road safety education materials, equipment and associated training for a program ofpre-school and school-based road safety education inthe three Demonstration Corridors. The design, implementation and evaluation o f the program will be supported by technical assistanceprovided under subcomponent A1. B.10Road accident emergency treatment (US$l.61million). This subcomponent will support the provisionof materials, equipment and training for an emergency medical services program inthe three DemonstrationCorridors. The design, implementation and evaluation o fthe program will be supported with technical assistance providedunder subcomponent A1. B.11Operating costs (US$2.07million). These funds will cover operations during implementation of the Road Safety Demonstrationand Awareness Program, including for NTSC, VR, VRA and the ministries ofPublic Security, Education andTraining, and Health. B.12 Consulting services (US$0.96million). This subcomponent will fund local consulting services and other costs associated with the operation o fproject sub-PMUs in the various project line ministries, and eligible expenses related to field supervision ofthe three DemonstrationCorridors. Component C. Road Safety Monitoring and Evaluation Program (US$6.20 million) This component will support developmentofthe NationalRoadAccident Database System (NRADS) and a comprehensive program o fproject corridor monitoring and evaluation. The following subcomponents will be supported under this component: C.1National Road Accident Database System (US$4.42million). This subcomponent will support the buildingo fthe NRADS, including the purchase o fequipment, software, andassociated systems, andtraining. Development o fthe functional requirements for the system, preparation o fbiddingdocuments, evaluation o fbids andproject implementation will be supported with technical assistance provided under subcomponent A1. C.2Demonstration corridor monitoring and evaluation (US$l.77 million). This subcomponent will support consulting services to carry out the necessary data collection andsurveys inthe three DemonstrationCorridors, according the agreed monitoring and evaluation fkamework. The detailed survey design andtrainingrequired for effective 35 implementation o fthe monitoring and evaluationprogram will be supported with technical assistance provided under subcomponent A1. 36 Annex 5: Project Costs VIETNAM: RoadSafety Project Project Cost By Component andlor Activity Local Foreign Total (US$ million) (US$ million) (US$ million) A. Institutionaland CapacityBuilding 2.74 4.44 7.18 A.l NTSC advisory services 0.88 3.5 4.38 A.2 EnvironmentalImplementationSupport 0.09 0.01 0.10 A.3 Support to TS PMU 0.13 0.52 0.65 A.4 Operating Costs and Training 1.64 0.41 2.05 9.RoadSafety Demonstrationand Awareness 8.99 9.66 18.65 6.1 Blackspottreatment program 1.65 1.65 3.30 6.2 Resettlement 0.59 0.07 0.66 6.3 Designand constructionsupervision 0.09 0.03 0.12 8.4 Vehicle inspectioncomputersystem upgrade 0.27 1.10 1.37 B.5 Driver training and testing 0.32 0.75 1.07 6.6 Road safety audits and safety inspection 0.13 0.13 0.26 B.7 Demonstrationcorridor.safetyenforcement 0.33 3.00 3.33 8.8 Road user education and awareness 1.71 1.14 2.84 B.9 Road safety education program 0.83 0.45 1.28 B.10 Road accident emergencytreatment 0.43 1.01 1.44 6.11 Operating costs (relatedMinistries) 1.86 0.21 2.07 8.12 Consultingservices (related Ministries) 0.78 0.14 0.92 C. RoadSafety Monitoringand Evaluation 0.54 4.87 5.42 C.l National RoadAccident DatabaseSystem 0.38 3.45 3.84 C.2 Demonstrationcorridor monitoringand evaluation 0.16 1.42 1.58 Total Baseline Cost 12.27 18.97 31.24 PhysicalContingencies 0.19 0.19 0.38 Price Contingencies 0.95 2.35 3.30 Total Project Costs' 13.41 21.51 34.92 Interestduring construction nla nla nla Front-endfee nla nla nla Total FinancingRequired 10.20 21.53 31.73 'Identifiabletaxes and duties are US$0.89 million,and the total project cost, net of taxes, is US$34.03 million. Therefore, the Bank's share of the projectcost net of taxes is 93.2%. 37 Annex 6: ImplementationArrangements VIETNAM: RoadSafetyProject NationalTraffic SafetyCommittee The National Traffic Safety Committee (NTSC) will act as executing agency for the project andwill be responsible for overall project management and oversight. The NTSC was established in 1997 at the request o f the Ministryo f Transport and the Ministryo f Public Security. Its responsibilities are to coordinate the activities o f central government agencies, People's Committees, and other relevant organizations on matters o f traffic safety andreport to and advise the prime minister about traffic safety issues. The NTSC has 11members: the vice or deputy ministers o fDefense, Finance, Justice, Education and Training, Health, and Transport, the deputy general director o f the Department o f Public Safety, the director o fthe Road and Rail Traffic Police, the director o f the Civil Aviation Authority, the chief o f the Central Committee o f the Fatherland Front, and the chief o fthe NTSC Executive Office. The chairman o f the NTSC is the minister (or vice minister, on the minister's behalf) o f Transport. The vice chairman i s the vice minister o f Public Security. A standing committee o f leaders o f central government agencies assists the NTSC inmanaging specific issues. The Executive Office o fthe NTSC will support the NTSC incarrying out its management and oversight responsibilities. The Executive Office consists o f the chief o f the office, the vice chief, chief accountant, and three other staffmembers. ProjectManagementUnits The NTSC has established the Transport Safety Project Management Unit (TS PMU) to implement the project. The TS P M Uwill be responsible for procurement, financial management, monitoring and reporting, and day-to-day supervision of project activities. The TS PMUis headedby a general director who reports to the chairman o fthe NTSC. The general director is supported by deputies inareas o f functional responsibility. Each o f the project participating agencies will establish and staff a sub-PMU to implement its part o f the project. Each sub-PMU will be responsible for technical decisions andmanagement o fproject components inits sector, with support from local andinternational experts. ProjectSteeringCommittee NTSC has established a project steering committee to ensure coordination and accountability duringproject implementation (as a condition o fproject effectiveness). Representatives come from the project participating agencies (Ministries o fPublic Security, Education and Training, and Health, andthe VRA and the Vietnam Register underthe Ministryo f Transport) as well as from the State Bank o f Vietnam, the Ministry o fFinance, the Ministry o f Planningand Investment, and the Ministryo f Transport's Planningand Investment Department. The vice minister o fTransport will serve as chair 39 o f the steering committee. The project steering committee will consider and decide on issues related to the guidelines, policies andimplementationo fthe project's detailed tasks. Its main function will be project monitoring and reviewing, anddeciding and commenting on objectives, problems, resources, andproject planning. Traffic Safety Departmentsand Committees Eachprovince has a traffic safety department and each city and district has a traffic safety committee. Traffic safety committees have also been established at the village or community level insome areas. The members o f local traffic safety committees represent the same 11agencies and departments as members ofthe national committee. Also like the national committee, traffic safety committees at the provincial and city levels have executive offices. Traffic safety committees and departments use some or all o f the following groups for assistance indelivering traffic safety information and education to communities: People's Committees, the Vietnam FatherlandFront, women's associations, farmers' unions, youth groups, and the Red Cross. DemonstrationCorridor SupervisionTeams TS PMUwill establish two supervision teams to design, implement, and monitor interventions andday-to-day activities on the demonstrationcorridors. One team will be responsible for the northern corridor and the other for the two southern corridors. These teams will be expected to work with local governments, road users, and local agencies in the corridor. The overall objective o f the supervision teams will be to design and implement a rapid-result planfor reducing accidents, injuries, and fatalities intheir respective corridors o fresponsibility. ConsultativeCouncil The Consultative Council will be established byNTSC to advise NTSC and share information about council members' activities with an eye to ensuringcoordination and synergybetweennongovernmental organizations (NGOs) andproject activities (as a condition o fproject effectiveness). The NTSC Executive Office will serve as chair o f the Consultative Council. Members o f the Consultative Council are representatives o fNGOs, international organizations, and enterprises. Members participate inthe Consultative Council on a voluntary basis andinclude the NTSC representative, the Vietnam Red Cross, SIDA, AIPF, GRSP, VCCI, Shell Vietnam, BP, Petco, 3 M Vietnam, Mercedes Vietnam, HondaVietnam, andSuzuki Vietnam. The project structure i s pictured inthe following organization chart. 40 NationalTraffic Project Safety NTSC Executive Steering Committee Committee Office + . c - Traffic Safety Project ProvincialTraffic Consultative Management Safety Departments Council Unit I I I I 1 I Demonstration 4 I I I I I I Reportingrelationship .................... Liaison,advisory,or coordinationrelationship Project Organizational Structure Other GovernmentAgencies The following additional government agencies will have supporting roles: a The Ministry o fNatural Resources andEnvironment, with support from local authorities, will ensure compliance with all government instructions relating to environmental protection and will monitor implementation o f the EMP. a The Ministryof Finance will allocate adequate funds to the project on a timely basis and will deposit government counterpart funds into the executing agency trust account for the project. a The local provincial People's Committees, through their local resettlement committees, will assist the TS PMUinland acquisition andresettlement. Summary The following table summarizes participating agencies' project responsibilities. Agency ResponsibilitylRole NTSC Overall project managementand oversight NTSC ExecutiveOffice NTSCmanagementfunctions,as requested, to support project managementand oversight role TS PMU Project implementation, coordination, monitoring,and supervision 41 I Agency ResponsibilitylRole I Sub-PMUS Managementand design of subcomponents, corridor supervision and monitoringwith TS PMU, and coordinationwith subnational traffic safety committees Strategic projectcoordination,monitoringand direction of project delivery 1SubnationalTraffic Safety Committees Supportto and participationin projectactivities as needed I Day-to-day supervisionof project implementationon demonstration Coordinationof NGO and privatesector activities.Advise NTSC ExecutiveOffice as requested. 42 Annex 7: FinancialManagementandDisbursementArrangements VIETNAM: RoadSafetyProject Countryissues The findings of the 2001Country Financial Accountability Assessment (CFAA) relevant to the financial management aspects o fthe VRSP are as follows: (i) reports from the public expenditure accounting system attempt to capture too much detailed data, and management reports for effective decision-making are not widely used; (ii) requirements o fpublic expenditure accounting are comprehensive and detailed; therefore compliance with the requirements is challenging for all units, particularly at lower levels; and (c) as accounting staff focus on more easily accomplished requirements such as mechanical verification o fpayments andreceipts, the regular and efficient monitoring o f State budget information for effective use of public funds at times i s not carried out ina timely manner. The CFAA also found that "the current budget arrangement inVietnam suffers from a lack o f transparency for achievement o f objectives.'' The conclusion o f the CFAA was that a certain degree o f fiduciary risk exists inthe use o fpublic resources. For this project, however, the fiduciary risk is assessedas manageable for on-budget items ifthe financial management plani s carried out. ProjectImplementationArrangements The National Traffic Safety Committee (NTSC) was established in 1997 at the request o f the Ministry of Transport andMinistryo fPublic Security to coordinate the activities o f central government agencies, People's Committees, and other relevant organizations in traffic safety andreport to and advise the prime minister about traffic safety issues. The NTSC established the Traffic Safety Project Management Unit (TS PMU) to implement this project. The TS PMUwill be responsible for procurement, financial management, project monitoring and reporting, and day-to-day supervision o f project activities. Strengthsandweaknesses and risk analysis The TS PMUdoes not have experience inIDA-fundedprojects, which creates a financial management risk for project implementation. Nor does it have a capable financial system, which creates the risk o f overspending. The financial management assessment o f the TS PMUidentified certain weaknesses inthe unit. (i) lack o f capable financial staff; (ii) lack o f suitable accounting software; and (iii) o f a detailed financial management lack manual. Ifthe financial management action plan (see further inthis annex) i s implemented, these risks and weaknesses will be significantly mitigated. Accountingpoliciesandprocedures The TS PMUwill develop a financial management system that has the flexibility to recordproject expenditures by expenditure category or project component. The chart o f accounts has been developed to accommodate the functions o f the accounting software to capture the expenditure data classifiedbyproject component and expenditure category. 43 Reportingand monitoring TS PMUwill be responsible for preparingfinancial reports for the special account. The project will use financial monitoring reports (FMRs) to meet practical monitoring requirements. FMRswill bepart o f the progress reports submitted bythe TS PMU. FMRs include: 0 Sources andUses o fFunds by expenditure category 0 Uses o f FundsbyProject by project activity and component 0 Special Account statement ImplementationProgress by contract (combined for Implementation Progress and Contract Monitoring); 0 Procurement Process Monitoring. Disbursementarrangements Project funds will be disbursed as specified inthe following table. ExpenditureCategory US$ million Financing Percentage CivilWorks 3.163 100%through December31,2007, and 92% thereafter Goods 11.775 100%of foreign expenditures, 100%of local expenditures (ex- factory cost) and 85% of local expendituresfor other items procuredlocally Consulting Services 10.289 100% Training and workshops 1.013 100% Incrementaloperating costs 2.070 100% Unallocated 3.420 Total 31.730 Use of statementsof expenditures Withdrawals from the special account will be made on the basis o f statements o f expenditures for works costing less than US$lOOyOOOequivalent per contract; goods costing less than US$50,000 equivalent per contract; services providedby consulting firms costing less than US$lOO,OOO equivalent per contract; and services provided by individual consultants costing less thanUS$5Oy0O0equivalent per contract. These documents will be made available for the required audits as well as to the Bank supervisionmissions on request. Expenditures above these thresholds will be submitted on the basis o f full documentation. SpecialAccount A special account will be opened ina commercial bankwith terms and conditions satisfactory to IDAwith an authorized allocation o f $3.0 million. The authorized 44 allocation will be limitedto an amount equivalent to US$1.5 million untilthe total amount o f all outstanding commitments i s equal to or exceeds the equivalent o f SDR 5.0 million. Replenishment applications will be submitted monthly or when the account is drawn by 50 percent o f the authorized allocation, whichever occurs first. For withdrawal outside the special account (applications for direct payment or for issuance o f special commitments), a minimumapplication value o f 20 percent o f the authorized allocation o f the special account will be observed. NTSC Executive (SI Finance SpecialAccount.> Departmentof TS PMU (2) m (8) TS PMU Contractoror Consultant I I I Flow of Funds Flow o f Funds Sequence: lb. Consultant submits invoices to TS PMUfor consulting services IC-1.Contractor submits invoices to VRA for civil works lc-2. VRA reviews and forwards to TS PMU 2. TS PMUreviews and forwards to TS PMUFinance Department. 3. Finance Department reviews, certifies, and sends to NTSC for signature; andNTSC returns signed invoice to Finance Department 4. Finance Department sends to Treasury. 5. Treasury reviews, approves, and sends back to TS PMU 6. TS PMUrequests holding bank to make payment from special account for IDA'S share o fpayment 7.Treasury pays the contractor counterpart share. 8. Bank pays the contractor or consultant IDA'Sshare. Audit Arrangement The project accounts will be audited on an annual basis inaccordance with international auditing standards and incompliance with the independent auditing regulations o f Vietnam. The audit will be prepared on the basis o f international financial reporting standards. The auditor's reports will be made available to IDA withinsix months o f the close o f the fiscal year. Each audit will create a single audit opinion covering project 45 accounts and use o f SOEs and the special account. The auditor will also provide with the audit report a management letter addressing the internal control weaknesses o f implementing agencies. The TS PMUwill select an auditor following IDA procurement procedures from the list o f eligible auditors provided by IDA and usingthe terms o f reference for the auditor approved by IDA. FinancialManagementAction Plan to Be Completed Before Credit effectiveness Weakness Action Responsible Agency ~ ~~ ~ ~~ ~~ ~ Lack of capable Appoint a financial managementofficer and a full-time TS PMU financial staff accountant with qualificationsand experienceacceptableto IDA Train the staff of the TSPMU in the financial management TS PMU system and the Bank's financial management,disbursement, and procurementprocedures Lack of suitable Establishcomputerizedfinancial managementsystem, TS PMU accountingsoftware includingdesign of the chart of accounts and installationof and financial specializedsoftware to producefinancial monitoringreports management manual Projectimplementationplanto be prepared, includinga TS PMU financial management manual 46 Annex 8: ProcurementArrangements VIETNAM: RoadSafetyProject A. GENERAL Procurement for the proposedproject will be carried out inaccordance with the World Bank's Guidelines: Procurement under IBRD Loans and IDA Credits dated May 2004, Guidelines: Selection and Employment of Consultants by WorldBank Borrowers dated May 2004, andthe provisions stipulated inthe development credit agreement. The various items under different expenditure categories are described below. For each contract to be financed by the credit, the different procurement methods and consultant selection methods, estimated costs, prior review requirements, andtime frame are agreed betweenthe borrower andthe Bank inthe procurement plan. The procurement plan will be updated at least annually, or as requiredto reflect actual project implementation needs andimprovements ininstitutional capacity. Works Works estimated at about US$3.75 million equivalent to be procured under this project include treatment o f blackspots along three high-risk national road corridors: National Highway 1betweenHanoi and Vinh (281 km); National Highway 1betweenHo Chi MinhCity andCanTho City (151km); andHighway51, DongNaiprovinceto Vung Tau (75 km).Blackspot sites for treatment (subprojects) inyears 2 to 4 o f the project will be selected by the VRA, with technical assistance provided under the project. The works are small and scattered. Therefore, national competitive bidding(NCB) is most suitable and will be the method used for contracts below the international competitive bidding (ICB) threshold o f US$2.0 million but exceeding US$50,000 per contract. The procurement will follow N C B procedures with modifications using sample bidding documents for N C B for works agreed with the Bank. Shopping or force account will be used for contracts meeting the criteria defined in paragraph 3.5 or 3.8 o fthe procurement guidelines andwith an estimated value below US$50,000 per contract. These include contracts for small engineering works such as installation o f guard rails, signage, andrumble strips; construction o f traffic islands and segregated traffic lanes; and minor roadwidening and improvements to accommodate pedestrian paths and improve driver site distances androad curvature. Goods Goods estimated at US$l1.8 million to be procured under this project include equipment for the National Road Accident Database System, road user education and public awareness materials for Traffic Police enforcement, software and vehicle inspection equipment, equipment for the Ministry o f Transport driver training centers, vehicles and equipment for the Road and Railway Traffic Police Administration, school road safety education materials, training materials and equipment for emergency medical treatment 47 and environmental monitoring includingair andwater quality monitoringequipment and noise measuring equipment. The following procurement procedures will be used: 0 ICB proceduresand standarddocumentsto procure goods estimated to cost more thanUS$150,000 equivalent per contract 0 NCB procedures and sample documents agreed with the Bank to procure goods estimated to cost less thanUS$150,000 but more thanUS$30,000 per contract 0 Shopping procedures inaccordancewith Articles 3.5 of the Guidelinesto procure goods estimatedto cost less thanUS$30,000 per contract 0 Through the Inter-Agency Procurement Services Office of the UnitedNations (IAPSO), inaccordance with the provisions of paragraph3.9 of the Guidelines, to procure vehicles andoffice equipment. Consultants Consulting services estimatedat US$10.3 million (net of contingencies) to be procured under the project include technical assistance aimedat strengtheningthe capacity and performance o fNTSC and TS PMU, monitoring of project safeguards compliance, road safety audits andsafety inspection, supportto sub-PMUs, independentmonitoring and evaluation o fthe implementation of the road safety corridor demonstration program, and implementation ofroad safety education and awarenesscampaigns. Quality- and cost-based selection (QCBS). Consulting services estimatedto cost more than US$100,000 per contract will be procured using the QCBS method. These assignments include institutionalcapacity building for NTSC; road safety audits and safety inspection; monitoring and evaluation of the demonstration corridors; androad user education and awareness campaigns. QCBS will apply to an aggregate amount of about US$12.0 million. Selection under aJixed budget (FB). Services for assignmentsthat meet the requirements of Paragraph3.5 of the Consultant Guidelinesmay beprocured under contractsawardedonthe basis of afixed budget inaccordancewith provisions of Paragraphs3.1 and 3.5 of the Consultant Guidelines. These assignments may include road safety audits and safety inspection. 0 Consultant qualzjication. Consulting services estimatedto cost less than US$100,000 per contract will be procured through the consultant qualification procedure. 0 Individual consultants meeting the conditions specified in Section V of the Consultant Guidelines, paragraph 5.1,will be procuredinaccordance with procedures specified inparagraphs 5.2 through 5.4 of the same section. 48 OperatingCosts Operating costs estimated at about US$3.35 million intotal include incremental costs relatedto project implementationactivities, including supervision field visits, vehicle rental, fuel and maintenance, office supplies, and project-relatedmeeting travel expenses, butexcluding government officials' salaries B.ASSESSMENTTHEAGENCY'SCAPACITYTO IMPLEMENTPROCUREMENT OF NTSC i s the executing agency for the project, andthe Traffic Safety Project Management Unit(TS PMU) isthe implementing agency. The TS PMUis responsiblefor overseeing all procurement processes. Procurement and other key staff o fthe TS PMUwere appointed on February 28, 2005. Six sub-PMUs will be established for eachproject participating agency-Vietnam Road Administration, Ministry o f Public Security, Ministryo f Education andTraining, MinistryofHealth, Vietnam Register, andNTSC ExecutiveOffice-and will be responsible for the substance o f their respective components, including specification o f biddingdocuments, evaluation o ftechnical responsiveness o fbids, obtaining approval for contract awards from their respective ministries, and supervision and quality control o f contract implementation. Establishment and staffing o fthe sub-PMUs is a condition for project effectiveness. Summary of MainFindingsandRecommendations The participating agencies are generally staffed with technical personnel with adequate knowledge and experience intheir respective professional areas and inprocurement using the government's procedures. The key issues and risks concerning procurement for the project include the absence o f formally established and fully functional subproject implementing agencies, potential inadequate procurement capacity o fthe project implementing agencies and inadequate familiarity o fthe participating agencies with Bank procurement rules, and a high-risk procurement environment. The corrective measures that have been agreed to include actions related to organizational setup, staffing, procurement procedures and documents, training, andtechnical assistance, as detailed inthe action planprovided below. The overall project risk for procurement is rated as high. ActionPlanto Buildthe Agency's Capacity The actions agreed with the project authorities to buildprocurement capacity are: Organizationalsetup 1. NTSC will issue prior to project effectiveness an official decision stipulating the role o f each participating agency, allocating responsibility for reporting systems, and spelling out the administrative relationship with each participating agency in terms o fproject implementation ingeneral and procurement processing in particular. 49 2. The participating agencies will establish their respective sub-PMUs before project effectiveness. Staffing 3. Each o fthe sub-PMUs will be staffed with at least one technical expert with satisfactory procurement skills. Training 4. Project launchworkshop, including procurementtraining, will be conducted. 5. TS-PMU procurement officers incharge o f I C B procurement will attend a course organized by an international agency such as Asian Institute o f Management (Philippines) or Administrative Staff College o f India (ASCI), preferably, if possible, before project effectiveness, or soon thereafter; 6. In-country specialized training onNCB, shopping, and small works procurement will take place before, or soon after effectiveness. Technicalassistance 7. An intemationally qualifiedprocurement consultant will be recruitedto support TS-PMU's procurement, including training for local staff on ICB before or soon after effectiveness. 8. A localprocurementconsultant will berecruitedto support TS-PMU's procurement, including training onN C B before credit effectiveness, or soon after. Eligibility of Dependent State-OwnedEnterprisesto Bidfor Bank-financed Contracts The Bank and the Government o f Vietnam agreed on a state-owned enterprise eligibility policy inNovember 2000 and the policy became fully effective inJanuary 2003. The Bank has made significant, although slow, progress inthe transport sector. The Bank will continue to monitor compliance with the state-owned enterprise policy. Underthe Bankpolicy, commercially oriented state-owned enterprises are allowed to bid for Bank contracts provided they are not dependent on the purchasing or employer agency. Dependency i s the key issue indetermining eligibility. With respect to the project, the following guidance shall be followed: Works and Goods Contracts. There are many private and non-Ministry of Transport- dependent state-owned enterprises capable o f undertaking the civil works under the project, including provincial construction companies. Thus, inprinciple, no Ministry o f Transport-dependent contractors, including those under VRA, are eligible for biddingon Bank-financed contracts. For work contracts meeting the conditions specified insection 3.8 o f the Procurement Guidelines, force account may be used. 50 Consulting Service Contracts. No Ministry o f Transport-dependent consulting firms or firms dependent on other participating agencies will be allowed to submit proposals for consultancy services funded by the project. N o military or security units or enterprises under the control o f military and security forces shall be eligible to bid. C.PROCUREMENTPLAN The Borrower, at appraisal, developed a procurementplan for project implementation that provides the basis for procurement methods. This planwas finalized and agreed between the borrower andthe project team at negotiations and is available at the NTSC Executive Office at the Ministry o f Transport, Hanoi, Vietnam. It will also be made available inthe project files andthe Bank's external website. The procurement planwill be updated inagreement with the project team annually, or as required to reflect actual project implementation needs and improvements ininstitutional capacity. D.FREQUENCYPROCUREMENT OF SUPERVISION Inadditionto the prior-review supervisionto be carriedout from Bank offices, the capacity assessment o fthe implementing agency has recommended semiannual supervision missions to the field to carry out post review o fprocurement actions. The estimated percentage o f contracts subject to prior review is 80 percent. Contracts not coveredby prior review shall be subject to post review at a ratio o f one infive contracts. E.DETAILSOF PROCUREMENTARRANGEMENTS INVOLVING INTERNATIONAL COMPETITION 1.Goods,Works, andNon-ConsultingServices Contract packages to be procured following I C B and direct contracting are specified in the following table. Ref. Contract Description Estimated Procurement P-Q Domestic Review Bid No. cost Method Preference by Bank Opening (US$ m) (Yes or No) (Prior or Date Post) A3 Vehicles for TS PMU, 0.32 ICB, NCB, No N/A Post TBD corridor supervision IAPSO teams, and sub-PMUs B4 Computer and 0.51 ICB No Yes Prior TBD communications equipment 64 Vehicle inspection 0.33 ICB No Yes Prior TBD equipment 84 Mobiletesting equipment 0.60 ICB No Yes Prior TBD and vehicles (2) 85 Equipmentfor upgrading 0.25 ICB No Yes Prior TBD vehicle licensingsystem 51 Ref. Contract Description Estimated Procurement P-Q Domestic Review Bid No. cost Method Preference by Bank Opening (US$ m) (Yes or No) (Prior or Date Post) B5 Equipmentfor upgrading 1.00 ICB No Yes Prior TBD driver training and testing facilities B7 Patrol Cars and Light 1.80 ICB No Yes Prior TBD Trucks 87 Motorcycles 0.18 ICB No Yes Prior TBD 87 Vehicle livery, police 0.65 IC6 No Yes Prior TBD equipment, and safety packages B7 Speed and alcohol 0.51 ICB No Yes Prior TBD detection and misc. safety equipment B10 Road accident 0.36 ICB No Yes Prior TBD emergencytreatment supplies for corridor hospitals C1 National RoadAccident 4.13 ICB No N/A Prior TBD Database 2. Consulting Services The consulting assignments with a short list o f international firms are specified inthe following table. Ref. Descriptionof Assignment Estimated Selection Review Expected No. cost Method by Bank .Proposal (US$ m) (Prior Submission or Post) Date A1. Capacity buildingand implementationsupport 4.91 QCBS Prior TBD B6. Roadsafety audits and safety inspection 0.29 QCBS, FB Prior TBD 88. Road user education and awareness campaigns 3.17 QCBS Prior TBD C2. Demonstrationcorridor monitoringand evaluation 1.77 QCBS Prior TBD Short lists of consultants for services estimated to cost less than US$200,000 equivalent per contract may be composed entirely ofnational consultants inaccordance with the provisions o fparagraph 2.7 o fthe Consultant Guidelines. 52 Review by the Association The following contracts are subject to prior review by the Association: i. ThefirstcontractprocuredusingNCBandthefirstcontractprocuredusing Shopping procedures ii.Foreachoftheprojectcorridors,thefirstcontractforworksineachwork program regardless o f cost iii.Eachcontractforworksestimatedtocost$100,000equivalentormore iv. Each contract for goods estimated to cost $100,000 equivalent or more v. All contracts with consulting firms, irrespectiveof cost, procuredthrough single- source selection, and all contracts with consulting firms estimated to cost $100,000 equivalent or more vi. All contracts with individual consultants estimated to cost $50,000 equivalent or more. All other contracts will be subject to post review by the Association. 53 Annex 9: Economic and Financial Analysis VIETNAM:RoadSafety Project Evaluation Criteria The project aims to improve road safety inVietnam by applying an integrated set o f interventions to three high-risk corridors as a demonstration project. The proposed investments will reduce roaduser costs and costs to society by reducing the number and severity o f accidents, injuries, and fatalities that result from road crashes. The cost-benefit method o f analysis was used. Because o f the integratednature o f the project andthe covariance effects between project components, the project has been evaluated as a whole rather than as individual components. A model has beendevelopedfor road safety onthe three demonstration corridors that takes into account the current and predictedvehicle distance traveled, current and predicted accident rates, and estimates o f the effect o f project interventions. Road accidents, fatalities, and injuries are modeled for the demonstration corridors with and without the project. The economic evaluation compares the incremental costs and benefits o f these two alternatives. The economic evaluation uses a 12percent discount rate and a 20-year analysis period. Costs andbenefits are discountedto March2004 values. The exchange rate usedi s VND 15,500 to US$l.OO. Investment costs include physical contingencies but are net oftaxes, duties, andother transfer payments and exclude price contingencies. Summary of Benefits and Costs The main economic benefits o f the project are reductions insocial costs resulting from reduced numbers and severity o f fatalities and injuries that result from road accidents. There will be some time savings to road users from better availability o f medical services butthesehave not been included inthe analysis. Environmental effects o fthe project are small, and mitigation measures are included as part o f construction; therefore, environmental aspects have been excluded from the analysis. The main costs of the project are for civil works (blackspot treatments) and purchase o f vehicles, equipment, and materials. These have beenestimated on the basis o f historical cost data for similar works andpurchases inVietnam. Other costs include consulting services and administrative costs. Compensation costs are not included inthe economic analysis becausethese are transfer payments and do not represent any gain or loss because o f the project. Inany case, compensation costs are very small. Economic costs total US$26.77 million, compared with the total financial cost o f the project o f US$34.92 million. 55 The estimated net present value (NPV) ofthe project, usingvery conservative accident cost values, the currentlyreportedratio of injuriesto fatalities, andbest estimatesfor the effect o fproject interventions, i s US$23.13 million, giving an EIRRof 34 percent. Accident Costs Accident costs usedinthis economic analysis are those documented inTechnical Note No. 6, RoadAccident Costing inVietnam, from the VietnamRoad Safety Improvement Study carried out by Ross Silcock et a1inMarch 1999. The costs have beenupdatedto March2004 values. The accident costs usedare given below Tvpe of Accident cost (US$) Fatal accident 15,400 Fatality 14,000 Injuryaccident 600 Injury 400 These injury accident costs include an adjustment for damage-only accidents andassume that injuries are 25 percent serious and 75 percent minor. Ifonly serious injuries are considered, the injury cost would increase. Internationally, willingness-to-pay has becomethe acceptedmethod to measurethe e value of life. This approach for developed countries gives a value (usually termed the "value of a statistical life", or the "value of a statistical fatality avoided") many times higher than the humancapital approach. A recent study suggeststhat areasonablerange for a country's value of statistical life appearsto be 100-200 times GDP per capita.8 Usingthe low end of this range for Vietnam would still substantially scale-up the estimate of project benefits andthis underscoresthe conservative nature of the estimates made using the values provided by Technical NoteNo. 6. Traffic Data The government's ComprehensivePoverty Reduction andGrowth Strategy is basedon high economic growth, which will be accompaniedby high growth intraffic and exposure to risk on the roadnetwork. Traffic growth inVietnam has beenvery high in the past decade and, given the governmental strategy, this trend i s expectedto continue. Limitedtraffic count informationfrom 1997to 2003 was obtained from VRA for the demonstration corridors. This has been extrapolated to give vehicle kilometers of travel (VKT) for eachsection ofthe corridors. The weighted averageannualtraffic growth (linear) for the corridors using these data, basedon linear regression, is 8.6 percent (of 2003 values). The informationusedi s shown inTable A9.1 * Health,Wealth and Welfare, David E. Bloom, David Canning and Dean T. Jamison, Financeand Development, March2004 56 c.7 a N Q n 5 c cc n c c c n Y E K 1 Accident Data Accident data for 2000-2003 for the demonstration corridors was obtained from Regional Road Management Units 1 and 7.The datawere captured from Traffic Police accident reports. Current accident reporting ratios for the demonstration corridors are 1.6 for accidentsto fatalities, and 1.5 for injuries to fatalities. This meansthat, ineffect, the Traffic Police report only fatal accidents anda very small proportionof serious injury accidents. There i s even some indicationthat all fatal accidents are not reported. An accident costing study inIndonesiafoundthat fatalities were some 40 percent greaterthanreported bypolice. Technical Note No. 6 recognizedthe significant under-reporting ofroad accidents in Vietnam and made some allowance for this inderivingthe accident costs. The assumed ratio of accidents to fatalities used inTechnical NoteNo. 6 was 6.9 andthe ratio of injuries to fatalities was 10.0. These ratios are conservative comparedwith the ratios for countries with reasonably good reporting regimes.For example, New Zealand has a ratio of reported accidents to fatalities of nearly 100, a ratio of serious injuries to fatalities of about 5, and a ratio of seriousplusminor injuries to fatalities of about 25. Reportedaccident rates averaged for the three years 2001-2003 for the demonstration corridors (combined), together with the associatedsocial cost, are given inTable A9.2. Table A9.2: Accident Rates 2001-2003 Average Social Cost US$ million 8 Cents per vehicle km 19 Accidents Total number 917 Rate per 100 million VKT 22 Fatalities Total number 553 Rate per 100 million VKT 13 Injuries Total number 836 Rate per 100million VKT 20 Itistherefore highly likely that the realnumberofaccidents onthe corridors is more like 3,0004,000. The number of accidents has little effect on the economic analysis because it is mainlythe fatalities and injuries that incur economic cost. However, it canhave an effect on the perception of project success. Although it is likely that fatalities are under-reported, no adjustment has beenmade for this inthe economic analysis. This means that the economic analysis is conservative with regardsto this factor. Adjustmentto the ratio of injuries to fatalities is discussedas part of sensitivity analysis. 58 Effect o f Project Interventions Commonpractice i s to estimate rates o f accidents o f differing degrees o f severity by road type and traffic conditions. The impact o f a project i s then forecast on the basis o fthe expected changes to road conditions andtraffic volumes. However, accident incidence on a section o f road or road network, like the demonstrationcorridors, i s very sensitive to local conditions and design, and a highvariability o f accident outcome from forecast i s not unusual. This i s partly due to the random nature o f accidents. Although no formal research shows the effect inthe Vietnamese environment o f the interventions proposed for the project, estimates can be made of the likely accident reduction effect based on the incidence o fthe accident cause factors being addressed by the project interventions together with international experience o f typical responses. The basis for the assumptions used i s described inthe following paragraphs. These assumptions are tested by sensitivity analysis. International research shows that any given accident often has multiplecause factors; Le., there are covariance effects when considering individual accident reduction interventions. This was kept inmindwhen estimating the following accident reduction effects, which needto be added to giventhe overall effect for the project. Blackspot Treatments Blackspots are road locations with highaccident rates, typically three or more reported per year. A total o f about 50 blackspot locations will be treated inthe four years o fthe project-8 inyear 1, andthen 14peryear. Blackspot treatments are based on a detailed analysis o f accident causes at the location. Treatments are designed to remove or minimize the road-related causes. Typically, treatment eliminates 60-80 percent o f accidents. Because blackspot treatments remove or modify road features that cause accidents, the effect i s a percent reduction o f the accidents that would have occurred rather than a fixed number o f accidents saved per year-more accidents are prevented iftraffic volume increases. Although a significant reduction inaccidents can be achievedby treating blackspots, the site is only a small proportion o fthe corridor length. The accident reduction effect needs to be expressed interms o f the effect on the corridor. Driver Licensing Driver licensing is reportedonly as a cause factor inabout 1percent o f accidents. However, manymotorcycle drivers have not learned the traffic laws and regulations or have not had formal training. It is highly likely that lack o f knowledge and inadequate skills are a much more significant cause o f accidents on the demonstration corridors. The project addresses driver licensing and skill ina number o f ways, including stricter enforcement o f existing laws, improved driver testing, and introduction o f a graduated driver license system for motorcycle drivers. Motorcycle drivers were responsible for just 59 over 70 percent o f road accidents in2003. It i s conservatively estimated that these new driver licensing interventionswill reduce accidents by 3 percent throughout the project. Vehicle Roadworthiness Unsafe vehicles account for about 2.5 percent o f accidents reportedby the Traffic Police. Because the roadworthiness o f a vehicle i s a technical matter, it i s likely that the real percentage o f accidents caused by vehicle defects i s considerably higher. Vehicle factors are typically a cause factor in5-1 0 percent o f accidents indeveloped countries where the standard o f vehicles is more controlled than inVietnam. It i s conservatively estimated that improved vehicle inspection and enforcement o f vehicle roadworthiness will reduce accidents by 2 percent throughout the project. Motorcycle Helmet Enforcement As noted, motorcycle driverswere responsible for just over 70 percent ofroad accidents in2003. Surveys conducted duringprojectpreparationshowed that lessthan30 percent of motorcycle drivers andpassengers were wearing helmets inareas where helmets are required. According to data from the Vietnam Multi-center InjurySurvey conducted in 2001, motorcyclists made up 59 percent o f road accident injuryvictims. No information is available as to the proportion o f the motorcycle injuries that resulted from not wearing a helmet, but the proportion is likely to be highgiven the low incidence o f helmet wearing. Experience elsewhere indicates that, even with significant penalties andrigorous enforcement o fhelmet laws coordinated with publicity, it takes time for compliance levels to approach full compliance. It is unlikely that 100 percent compliance will ever be achieved. Inlight ofthis, the motorcycle helmet interventionsproposedinthe project shouldhavea major effect on reducing the severity o froad accidents (reduced proportion of fatalities andserious injuries). Wearing a motorcycle helmet will not prevent an accident, so the effect applies only to fatalities and injuries. Allowing for the effect o f other project interventions, it i s estimated that the project motorcycle interventions will reduce fatalities and injuries by 10 percent inYear 1andby 22 percent at the end o fthe project. Speed Enforcement Speeding i s reported as being a contributing factor in35-40 percent o f accidents in Vietnam and inabout 50 percent o f accidents on the demonstration corridors. The project provides speed enforcement equipment and training to the Traffic Police so that speeding on the demonstration corridors can be better controlled. Bearing inmindthat other cause factors are likely to coexist with speeding for any given accident, the accident reduction effect of the speed enforcement and coordinated publicity proposed inthe project i s estimated at 10 percent for the duration o f the project. Half o f this is appliedto reduction inaccident numbers and halfto reduction inseverity. 60 Drink-DrivingEnforcement Drink drivingis reportedas a contributing factor inapproximately 8 percent ofaccidents nationally and 5 percent on the demonstration corridors. International experience shows that the real rate o f alcohol-impaired driving i s likely to be nearer 20 percent inVietnam, even allowing for cultural differences. The project provides alcohol enforcement equipment andtraining to the Traffic Police so that drink driving on the demonstration corridors can be better controlled. Again allowing for covariance effects, it i s estimated that the accident reduction effect o f improved drink-drivingenforcement and coordinated publicity will be 3 percent inthe first two years o f the project and 5 percent inthe last two years. Encroachment Enforcement There are no reliable data on the accident-causing effect o f trading and other encroachment on the demonstration corridors. Anecdotal evidence indicates that adjacent activities spilling onto the highway i s the cause o f many accidents. A nominal accident reduction effect o f 1percent throughout the duration o f the project has been allowed. This recognizes the increasedattentionto encroachment enforcement proposedduringthe project. Road Safety Education for Schools Road safety education for schools differs from road safety education ingeneral. Itaims to engender a positive attitude to road safety inyoung people, both interms o f their own personal safety as pedestrians and cyclists as youngsters and interms o f their driving behavior when they are older. Because the main benefits o f road safety education programs in schools are expected to be realized inlater years, it i s not surprising that rigorous evaluations o ftheir benefits are not available. A nominal accident reduction effect o f 1percent throughout the duration o f the project has been assumed for these interventions. Emergency Medical Services Like wearing motorcycle helmets, improved emergency medical services will not reduce the number ofaccidents onthe demonstration corridors. Rather, more immediate access to appropriate medical services and first aid from Traffic Police for accident victims will reduce the percentage o f fatalities and serious injuries. Allowing for the accident reduction effect o f other project interventions, particularly motorcycle helmet wearing, it is estimated that the improved medical services proposed inthe project will reduce the percent offatalities and injuries by2 percentinitially, and by 4 percent by the endo fthe project. Summary of Estimated Intervention Effects Table A9.3 summarizes the best-estimate interventioneffects used inthe economic analysis. 61 Table A9.3 Best Estimate Intervention Effects Effect of New Interventions - Year 1 Year 2 Year 3 Year 4 Blackspot treatments 3.0%1 6.0%1 9.0%1 12.0%1 Driver Licensing - TrainingnestinglEnforcement 3.0% I 3.0%1 3.0%) 3.0'301 Sensitivity Analysis SwitchingValues for Critical Items I' A standard sensitivity test o f20 percent increase intotal project cost and20 percent decrease inbenefits reduces the NPV to U S $ l1.72 million and the EIRRto 20 percent. It is unlikely that all project components will increase by this amount. The switching value for cost increase (the cost increase at which N P V becomes zero) i s 137 percent. For this project the critical items drivingthe NPV andEIRR are the estimated savings in fatalities and injuries rather thanproject cost. Switching values (the decrease in intervention effect at which NPV becomes zero) cannot be calculated for individual intervention items unless the effect i s changed to a negative value. The results o f reducing individual interventioneffects to zero are shown inTable A9.4 Table A9.4. Changes for Removal of Intervention Effects Intervention Removed NPV (US$ million) EIRR Blackspottreatments 15.76 26% Cycle helmet enforcement 8.72 12% Speed enforcement 15.82 25% Cycle helmet + speed enforcement 1.41 13% The results o f lower estimates o ftraffic growth are shown below: Traffic GrowthRate NPV (US$million) ElRR 5yo 16.29 28% 3% 12.49 25% The effect o f using more realistic injurynumbers (changes inratio o f injuries to fatalities) is shown below: Ratio Injuries/Fatalities NPV (US$ million1 5 26.97 39% 10 32.46 53% 62 Annex 10: Safeguard Policy Issues VIETNAM: Road Safety Project Social The project social assessmentfound that respondents to the social survey expected the main social development outcomes o f the project to be improved pedestrian and roaduser safety. Because roadtraffic accidents are the leading cause o f death among children, the project is expected to benefit vulnerable groups, which also include women andthe elderly, inparticular. Potential negative social impacts include small-scale landacquisition and resettlement. For the first-year work program (treatment o f eight blackspots), a detailed census and an inventory o f affected assets have been completed. Ten households-52 people-will lose agricultural and residential land, structures, trees, and crops. None will be severely affected or require relocation. Resettlement action plans (RAP) have been adopted by the government. All involuntary resettlement will comply with World Bank Involuntary Resettlement policy (OP/BP 4.12). For subsequent years, blackspots to be treated have yet to be identified. However, impacts are expected to be similar to those of the first-year program. To address resettlement issues insubsequent years, the government has adopted a project RPF, which will apply to any adverse impacts on project-affected people inthe area o f clearance for civil works (see Annex 10). The RPF complies with the World Bank's Involuntary Resettlement policy (OP/OD4.12) and Indigenous Peoples policy (OD 4.20). The NTSC carried out extensive consultation with communities along the selected roads duringthe preliminaryidentificationo fblackspots andduringthe social assessment surveyprocess. Feedback and concerns raisedduringpublic consultationwere taken into account indetermining an approach to the project environmental assessment and EMP, location o f blackspots, blackspot treatments, and monitoring framework. The TS PMU and provincial and district authorities will work with provincial committees to implement the RAPSandwill be responsible for monitoring social development outcomes andmanagingtheir respective frameworks. Itwill be supported by consulting services to ensure that they can develop and apply operational manuals and procedures under the project as well as work with contractors and local authorities. An independent monitoring agency will monitor compliance. An evaluation is proposed two to three years after completion o f resettlement to determine whether the project-affectedpeople's incomes and livelihood have improved or at least been restoredto pre-project levels. Additional assistance will be provided to those who have not been able to restore their incomes. 63 The project will monitor social development impacts duringimplementation using the Monitoringand Evaluation Framework outlined above. Environment The project has been rated as an environmental category B. The overall environmental impact o f the project i s expected to be positive through substantially improved road safety, particularly inthe demonstration corridors. The negative environmental impacts o fthe project are expected to be minor and limited to the blackspot treatment component o f the project, which includes civil works such as installation o f guard rails, signage, and rumble strips; construction o ftraffic islands and segregated traffic lanes; and minor road widening and improvements to accommodate pedestrian paths and improve site distances and curvature. An environmental assessmenthasbeenprepared for the project inaccordance with World Bank policies. An EMP for the project has beenprepared, taking into considerationthe findings ofthe environmental assessment. The EMPincludes a policy framework and guidelines for environmental assessmentand impact mitigation for annual work programs as they are identified. The policy framework outlines studies and actions that may be requiredto ensure that a work package meets the Bank's environmental and social requirements. All work package proposals will be required to contain basic environmental and social informationto determine whether they are likely to have significant environmental impact or require landor asset acquisition or resettlement. Roadworks with minor impacts will use the standard operating procedures outlined in the EMPbefore the design is approved. It i s not expected that any works will have serious environmental impacts. IDA undertook field investigationsinOctober 2004 to confirm the findings ofthe environmental assessment and found that little undisturbed habitat o f special-status wildlife species exists inthe project area or immediate environs. The project proposes no bypass, realignment, or other action inundisturbed areas. No blackspot treatments are near a national park. All works will be on existing roadways, and road improvements will be performed withinpresent alignments. Where works identified for first-year investment include land acquisition and displacement o fpeople, resettlement action plans have been prepared and a policy framework adopted for future years. No long-term impact to area soils from increased pollutant levels is anticipated. Changes to hydrological characteristics are not considered significant. The overall impacts on the environment are expected to be minor and confined to construction areas. Overall, the project will generate long-term positive impacts as traffic flows and road safety improve. Most adverse impacts will be mitigated through contract provisions and supervision by the implementing agency and its construction supervision consultant. Contract specifications concerning contractors' responsibilities during civil works are provided in the environmental assessment and EMP. Contractual requirements call for contractors to 64 develop environmental management, safety, and traffic control plans subject to approval o f the construction supervision consultant's supervising engineer. The cost o f implementing the EMP at the works package level will be included inthe cost o f individual civil works contracts. The EMPs specify contract provisions goveming the sources o f construction materials andthe means o ftransport. Construction contracts will require the acquisition o f construction material (such as sand and gravel) according to the EMP, and only authorized borrow pits and licensedquarries, ifneeded, are to be used. Measures for timely site stabilization and erosioncontrol are included. Contract documents will include the stipulation that no cement manufacturedfrom dredged coastal coral resources is to be used. N o pesticides or chemicals to control vegetation will be used. The EMP also includes stipulations on spill prevention and cleanup, dust and noise control, traffic management duringconstruction, safety enhancement, andconstruction site cleanup and rehabilitation. Although no cultural relics have been identified, the contract documents will include provisions for handling chance finds o f relics. The final environmental assessment was received and cleared by the Bank inDecember 2003 and disclosed thereafter incompliance with the World Bank's disclosure policy. The Government adopted all project safeguards documents inletters dated May 10,2005, and May 11,2005. The environmental documents to be used by the Government during implementation o f the project are (i) VietnamRoad Safety Project (Phase I), EnvironmentalAssessment, OPUS InternationalConsultants andTransport Development Strategy Institute, Ministry o f Transport, Vietnam, November 2004; and (ii) Vietnam RoadSafety Project (Phase l),Environmental Management Planfor Engineering Works, OPUS International Consultants and Transport Development Strategy Institute, Ministry o f Transport, Vietnam, November 2004. Public consultation meetings were held ina sample o f communes inthe demonstration corridors. The social assessment and final EMP developed for the project reflect the stakeholders' comments and suggestions. The findings from public consultation are summarized ina stand-alone report, Vietnam Road Safety Project, Public Consultation Meetings, dated November 2004, which is available inproject files and has been publicly disclosed. The EMP requires baseline androutine air, water, and noise monitoring. Reporting o f environmental parameters (e.g., dust, safety, sanitation) will be included insite diaries routinely maintained by the construction supervision consultants and environmental units o fthe implementing agencies andreported inprogress reports. Frequencies, parameters, locations, and methods are detailed inthe EMP. Reporting on environmental monitoring will be standardized, and monitoring data will be submittedto local environmental authorities. The capacity buildingprogram described inthe EMPwill address the environmental training needs o f the NTSC, provincial departments, TS P M U staff responsible for environmental issues, and contractors. 65 Appendix to Annex 10: ResettlementPolicyFramework A INTRODUCTION i) Project Description The Vietnam Road Safety Project (VRSP) -Phase 1consists of the following nine linked components: 1. Strengthen the management and technical capacity o f the NTSC and prepare a national roll-out program for phase 2 ofthe road safety strategy; 2. Demonstrate comprehensive, integrated safety programmes in three high risk corridors and develop the programmes for nationwide application. The designated "safe highway" corridors are: - National Highway 1(km 172-km463) Hanoi to Vinh - National Road 51(km0 -km75) DongNaiprovince to Vung Tau - National Highway 1(km 1915 -km2068) Ho Chi MinhCity to Can Tho; 3. Develop nationwide traffic accident monitoring and analysis tools; 4. Enhance the application of road safety audit; 5. Enhance the identificationo f and responseto accident blackspots; 6. Improve driver training, testing and licensing, and vehicle testing; 7. Improve traffic safety enforcement and coordinated road user education and awarenesscampaigns; 8. Improve pre-schooland school-basedroad safety education; and 9. Improve the state o f readiness, awareness and co-ordinated response o f emergency services. O f these nine components, only Component 5: Blackspot Improvement works will involve any engineering works and land acquisition at a small scale. The goal for the four-year, US$25 million VRSP Phase 1 is to reduce poverty and vulnerability by reducing the rate o f road transport accidents, injuries, and deaths in Vietnam. Achieving this goal will contribute to the achievement o f the World Bank Group's Country Assistance Strategy for Vietnam Theme 2, Enhancing Equitable, Socially Inclusive and Sustainable Development, Agenda item (vi), Mitigating the impacts of natural disasters and other shocks, and the Government o f Vietnam's Comprehensive Poverty Reduction Growth Strategy Goal 8 - Reducing Vulnerability. The latter address health shocks that push people into poverty or make escape from poverty difficult. ii) Resettlement Policy Framework This Resettlement Policy Framework lays down the principles and objectives, eligibility criteria of Displaced Persons (DPs), entitlements, legal and institutional framework, 66 modes o f compensation and rehabilitation, peoples' participation features and grievances procedures that will guide the compensation, resettlement and rehabilitation of the DPs. B DEFINITIONOFKEY TERMS i) DisplacedPersons The DPs include the person or persons, household, firm or a private or public institution to be identified by the baseline information collected for each of the Inventories and Resettlement Action Plans (RAPS) who, on account of the execution of the Project, have experienced or would experience direct economic and social impacts caused by: (i) the involuntary taking of land, resulting in: Relocationof loss of shelter; Loss of assets or accessto assets; or Loss of income sources or means of livelihood, whether or not such person must move to another location; or (ii) the involuntaryrestrictionof access to legally designated parks and protected areas, resultinginadverse impacts onthe livelihood of such person. "Displaced Persons" means, collectively, all such Displaced Persons. ii) Compensation Compensation includes the process o f financial or material reimbursement of DPs who lost partial or the absolute value o f their assets as a result o f the Project. Compensation also includes the valuation and reimbursement in monetary terms or in kind of financial and physical lossesas a result of impacts o f the Project. iii) Cut-off date The cut-off date is the last day of the survey when all DPs have been accounted for and this day will be clearly stated to DP by relevant authorities.. After the cut-off date, no other DPs may be included inthe inventory o f DPs. The inventory lists all potential DPs, including their baseline information. People who move residences or business assets into or within the marked right o f way after the cut-off date are not entitled to compensation under this policy framework. iv) Rehabilitation Rehabilitation means providing assistance to DPs severely affected due to the substantial or entire loss of productive assets, incomes, employment or sources or living, to supplement payment of compensation for acquired assets in order to improve, or at least achieve full restoration of incomes and living standards to the pre-project levels. v) Replacement Cost With regardto the landand structures, "Replacement Cost" is defined as follows: 67 (a) For agricultural land: it i s the pre-project or pre-displacement, whichever is higher, market value of land of equal productive potential or use located inthe vicinity or the affected land, plus the cost of preparing the land to levels similar to those of the affected land, plus the cost o f any registrationand transfer taxes. (b) For land in urban areas: it is the pre-displacement market value of land o f equal size and use, with similar or improved public infrastructure facilities and services and located in the vicinity o f the affected land, plus the cost of any registration and transfer taxes. (c) For houses and other structures, it is the market cost of the materials to build a replacement structure with an area and quality similar to or better than those of the affected structure, or to repair a partially affected structure, plus the cost of transporting building materials to the construction site, plus the cost o f any labor and contractors' fees, plus the cost of any registration and transfer taxes. In determining the replacement cost, depreciation of the asset and the value of salvage materials are not taken into account, not is the value o f benefits to be derived from the project deducted from the valuation of an affected asset. (d) Crops, trees and other perennials basedon current market value. i.Compensation for annualcrops isequivalenttotheproductionoverthe last three years multiplied by the market price for agricultural products at the time of the calculationo f the compensation. ii.Compensation for trees includes total investment cost plusproduction cost from the time of its planting to the expropriation. In case this cost cannot be determined, the compensation will be calculated on the basis o f the type, age and productivevalue. (e) Other assets (i.e. income, cultural, aesthetic) based on replacement cost or cost mitigating measures. For example, compensation for the movement of graves includes all expenditures for exhumation, movement and reconstruction to its original state. vi) Resettlement Resettlement refers to all measures taken by the Project Proponent to mitigate any and all adverse social impacts of a project onthe DPs, including compensation for lost assets and incomes and the provision o f other entitlements, income rehabilitation assistance and relocation, as needed. vii) Right of Way For this Policy Framework, Right o f Way (ROW) is determinedby measuring both sides of the road, starting from the existing or proposed centerline to the outside edge of the cleared zone. 68 viii) Vulnerable Groups Vulnerable groups include those distinct groups of people who might suffer disproportionately or face the risk of being marginalized by the effects of resettlement, and specifically include: (a) Poor and very poor communes as identifiedby the 1999national survey results. (b) Ethnic minorities. (c) Mentally and physically handicapped people or people inpoor physical health. (d) Infants, children andwomen. (e) Households without security of tenure or with tenure status. ix) DPs withoutLegal Title DPs without legal title are occupants of land and housing without legal ownership rights and individuals or groups o f people with shops conducting business in the immediate project areas without official registration and who will be adversely impacted by the Project through displacement. DPs without legal title are entitled to compensation provided their assets affected by the project were documented in the pre-project census prior to the cut off date. x) Ethnidndigenous People Ethnichdigenous People are defined as persons who belong to a minority tribal group affected in part of in total (temporarily or permanently) by the Project due to acquisition o f their lands, dwellings, disturbance or their place of work, and other Project-related adverse impacts. xi) Land UseRegistration Certificate(LURC) LURC is similar to a title granted to DPs that legalize their use of the lands and/or houses they occupy. xii) RelocationSite The relocation site is defined as the area allocated for the resettlement of DPs living on both sides o f the VRSP sub-projects that are severely affected and who choose relocation over cash compensation. C OBJECTIVES i) The principle objective of the Resettlement Policy Framework is to ensure that all DPs will be compensated for their losses at replacement cost and provided with other assistanceand rehabilitation measuresto assist them to improve, or at least maintain, their pre-project living standards and income earning capacity. 69 ii) Everyeffortwillbemadetoavoidlandacquisitionimpacts,orwhereitisnotpossible,to minimize displacement and adverse impacts of projects by examining all available design options. iii) Shouldtheneedforresettlementoccur,itwillbetreatedasanintegralpartoftheproject and be implementedinfull consultation and participationwith the DisplacedPersons. iv) Attention is paid to affected vulnerable groups in order to enhance their future prospects and for poverty alleviation. D PRINCIPLES The policy o f World Bank's Operational Policy 4.12 on involuntary have been adopted in preparingthis Resettlement Policy Framework. Inthis regardthe following principles and objectives will be applied: For each project a separate resettlement study shall be carried out, including planning and implementation of an RP if required, funding, monitoring and evaluation of subsequent action. ii) Acquisition of land and other assets, and a resettlement study shall be carried out, including planning and implementationof an RP if required, funding and monitoring and evaluation of subsequentaction. iii) The Project is not anticipated to involve the acquisition of or impact on wildlife sanctuaries, protected habitats, or areas of cultural sensitivity. iv) Special attention will be placed on minimizing the adverse impact on vulnerable groups and where this is unavoidable, assistance would be provided to achieve stated objectives o f this policy framework. All DPs residing, working, doing business or cultivating land in right of way (ROW) of the Project roads and other project areas, as of the date of the baseline surveys, are entitled to be provided with compensation, other assistance and rehabilitation measures sufficient to assist them to improve or at least maintain their pre-Project living standards, income earning capacity and production levels. Lack of legal rights to the assets lost will not bar the DPfiom entitlement to such measures. vi) The compensation measures to be provided are: (a) Compensation at replacement cost without deduction for depreciation or salvage materials for houses and other structures; (b) Agricultural land for land of equal productive capacity acceptable to the DP or in case suitable replacement land is not available and at `informed request' o f DPs, compensation incash at replacement cost. 70 (c) Replacement of premise land of equal size acceptable to the DP or in case suitable replacement land is not available cash compensation at replacement cost may be provided at `informed request' of the DPs; (d) Transfer, transitionand subsistence allowances; (e) Compensation at replacement cost for temporary impacts; (f) Compensation at replacement cost or assistant package for DP without legal rights to their affected assets as identifiedbefore the cut-off date to ensure that they are not worse-off due to the project; (g) Economic rehabilitation assistance for severely affected DPs and vulnerable groups to improve, or at least restore their incomes and standards of living pre-project level on a sustainable basis; (h) Inthe case of loss of business, DPs will be providedwith a special allowance for the loss o f business income duringthe transition period; (i)Compensationatreplacementcostofpartialimpactsonexistingstructurestogether with allowance for repair of remaining structures; and (`j)Replacement premises and agricultural land will as nearly as possible be equal in value to the landthat was lost, and acceptableto the DP. vii) The resettlement transition period will be minimized and the compensation and other rehabilitation means will be provided to the DPs no later than five month (for DPs who are fully affected on houses) and two months (for DP who are partially affected on houses) prior to the expected start-up date of civil works inthe respective Project site. viii) Tenants who have leased a house/structures for residential or other purposes and are affected by the project will be provided with cash assistance equivalent to six months rental allowance and to cover for other losses, and will be assisted in finding alternative rental accommodation. ix) Plans for acquisition o f land and other assets and provision of compensation and other rehabilitation measureswill be carried out inconsultation with the DPs, to ensure minimal disturbance. Entitlements will be provided by DPs no later than one month prior to expected start-up of works at the respective project site. x) The previous level of community services and resourceswill be maintained or improved. xi) Any acquisition of, or restriction on access to resources owned or managed by the affected community as a common property, should be mitigated by arrangement ensuring access to improved, or at least equivalent resourceson a continuing basis. xii) Financial and physical resources for resettlement and rehabilitationwill be made available as and when required. 71 xiii) Institutional arrangements will ensure effective and timely design, planning, consultation and implementation ofthe Inventories and RPs. xiv) Effective and timely supervision, monitoring and evaluation of the implementation of the Inventories and RPs will be carried out. XV) All replacement land for agriculture, residential and businesses will be provided with security tenure stated and without any additional cost, sales taxes, fee and surcharge to the DPs at any time of transfer. E ENTITLEMENTS DPs will be entitled to the following types of compensation and rehabilitationmeasures: i) DPs losingagricultural land and crops (a) DPs with legal or legalizable rights of land use: i.The general mechanism for compensation of lost agricultural land will be through provision of "land for land" arrangements o f equal productive capacity, satisfactory to the DP. However, if the DP prefers to receive cash compensation or replacement land is not available thenthe following applies: Ifthe portionofthe landto be lostrepresents20% or lessofthetotal area of the landholding, and the remaining land is still a viable economic holding, cash compensation, at full replacement cost, may be provided to the DP; or If more than 20% of a villager's agricultural land is acquired and the remaining holding i s not viable then the Project will acquire the entire landholding and provide cash compensation at full replacement cost. ii.DPswillbecompensatedforthelossofstandingcropsandfruitorindustrial trees at market price. Productive trees will be compensated at replacement cost. iii.DPswhose landistemporarilytakenbytheworksundereachsub-project will be compensatedfor their loss of income, standing crops and for the cost o f restoration o f the land to its previous productive status, and for damaged infrastructure. iv. Severely affected DPs. A severely affected DP is one who loses 20% or more of their assets in any of the following categories: agricultural land, and/or residential landwith or without structures. v. Severely affected DPs and vulnerable groups will receive economic rehabilitation assistance in the form o f income rehabilitation programs, training to improve skills and other assistance for self-employment enabling them to attain, at a minimum, pre-project livelihood levels on a sustainable basis. (b) DPs without legalor legalizable rightso f landuse. 72 i. DPswhoareleftwithnoagriculturalland,orwhoseremaininglandisless than the standard in the locality (the standard for households' agricultural land area is based on the number of laborers in the household, and is determined by the PPC for the locality), will be provided with replacement agricultural land to meet the standard of the locality to ensure the achievement o fthe policy objectives. ii.TheremainingDPswillnotbeprovidedwithlandcompensation, buttheir lost crops, houses and other assets will be compensated fully at replacement cost. ii) DPs losingresidential landand structures: (a) DPs with legal or legalizable rightsof land use i. Themechanismforcompensatinglossofresidentiallandandstructureswill be: (1) the provision of replacement residential land (house site and garden) o f equivalent size, satisfactory to the DP or in cash at the replacement cost; and (2) cash compensation reflecting full replacement cost o f the structures, without deduction for depreciation or salvage materials. ii.Iftheresidentiallandand/or structureisonlypartiallybeingaffectedbythe Project and the remaining residential land is not sufficient to rebuild the residential structure lost in accordance with the prevailing standards, then at the request of the DP the entire residential land and structure will be acquired at full replacement cost, without depreciation. iii.All relocated DPs will be provided with transportation and subsistence allowances as specified inArticle 4 o fDecree 22/CP. iv. Tenants who have leased a house for residential purposes will be provided with a cash grant of from three to six months rental fee at the prevailing market rate in the area, and will be assisted in identifying alternative accommodation. v. Severely affected DPs and vulnerable groups will receive shelter or other forms o f economic rehabilitation from the GOV if deemed necessary and where applicable. vi. In case o f partial impact on structures and where the remaining structures remain viable for continued use, DPs will also be entitled to additional allowance for repair of remaining structure. (b) DPs without legal or legalizable rightso f landuse i. Intermsoftheirlands:IftheDPsdonothaveotherresidentiallandorthe remaining land is not sufficient enough for rebuilding the new house, they will be provided with replacement land to meet the standard size o f the locality. ii.Forthe other casesthere willbenolandcompensation, buttheir houses, structures and other assets on land will be compensated as DPs with legal or legalizable rightso f land use. iii) DPslosingbusiness 73 (a) The mechanism for compensating loss of business will be the same that applies for the lost residential land and structures such as: (1) the provision of alternative business site o f equal size and accessibility to customers, satisfactory to the DP; (2) cash compensation for lost business structures reflecting full replacement cost of the structures, without depreciation or deduction for salvaged building material. In addition, DP will receive cash compensation for the loss o f income during the transition period. (b) DPs will also be provided compensation at full replacement cost, without deduction for depreciation and salvage materials for any other fixed assets affected in part or in total by the Project, such as tombs and water wells. (c) In cases where community infrastructure such as schools, factories, water sources, roads and sewage systems is damaged, the GOV will ensure that these would be restored or repaired as the case may be, at no cost to the community. iv) Other support policies Article 26 of Decree 22 provides that based on local conditions, the Chairperson of the People's Committee o f the province of a city may decide on a number of policies pertaining to the allowances paid to the persons whose lands are to be acquired for the Project. These include: (a) Families with a member or members who is/are receiving social allowances from the State and who have to move their dwelling places due to the recovery o f the land shall receive a minimumallowance of 1,000,000 VND. (b) Relocation assistanceto a transition period in six months, equivalent to 30 kg o f rice per month per person (c) An organization, household or an individual who i s a user of the land and who carries out the dismantling of the construction, who moves according to the plan o f the Council o f Compensation for ground clearance shall receive a maximum award of 5,000,000 VND per household. F INSTITUTIONAL AND LEGAL FRAMEWORK i) Institutional Framework The responsibility for implementingthe Resettlement Policy Framework and RPs are as follows: (a) The overall responsibility for enforcement o f the Policy Framework and for planning and implementing RPs rests with the Government and/or the Vietnam Roads Administration, VRA. The GOV is responsible for preparing inventories and RPs and for the day-to-day implementation thereof within their respective jurisdiction. The peoples' committees at the commune level will ensure active and effective participation of the DPs in the preparationand implementation o fthe RPs. (b) Funds for implementingRPs will be provided by the Government based on the costs estimated and presented in the RPs. In case o f overruns of costs due to unforeseen 74 delays or other circumstances, the Government will be responsible for providing necessaryadditional funds as and when requiredto cover all resettlement costs. io Legal Framework (a) The OP 4.12 of the World Bank on involuntary resettlement. (b) Land law 2003 and Decrees no. 181/2004/ND-CP and no. 182/2004/ND-CP to guide on the implementationofthis laws (c) Decree No 87-CP provides for minimum and maximum prices for compensation of different categories of land. These prices have been established for purposes of leasing government land, acquisitionof land by government, for tax value for transfer o f land use rights and for national and public purposes. The prices established in this Decree are set administratively and may not be adequate for compensating the value o f the land lost in accordance with the principles and objectives of this Framework (full replacement cost). There is therefore need for the GOV to issue a special decision providing for the waiver of the provisions of Decree 87-CP and allowing payment of compensation at replacement cost without deduction for depreciation of salvage materials. (d) Decree No 22-CP, which was enacted on April 24, 1998, has significant improvements over earlier decrees. These improvements are as follows: it provides for a wider coverage and increased amounts for transition and moving expenses in relocation; provides for land and cash options for compensation; introduces entitlement for land at above administrative rates in the statement "compensation suitable to the profit-making capability ..." and eligibility for entitlement expanded from legal land users to include: (i) "legalizable land users"; and (ii) using those public right of way can be considered "case by case". However, the Decree provides that those without legal rights to landandhouses will not be entitled to compensation (Articles 7 and 16). The Decree provides for the establishment of compensation prices that could result in less then 100% replacement cost without depreciation for land (Article 8) and for houses and structures (Articles 17 and 18). The Decree allows for rental allowances that could be established as less than 100% value of the DP's current rental rate (Article 25). These articles are contrary to the principles and entitlement policy outlined in this Framework and, therefore, GOV will issue a special decision providing for the waiver o f provisions within Articles 7, 8, 16, 17, 18 and 25 of Decree 22 that are inconsistent with guidelinesof the World Bank. (e) Circular 145/1998 o f MOF to guide on the implementation o f Decree 22/1998-ND- CP. (f) Decree No 172/1999/CP, which was enacted on December 19, 1999, and became effective as of January 1, 2000, stipulates that DPs within the ROW will be compensated for land and properties if they occupied them prior to the enactment of the Decree. In project areas where the Decree has been fully applied, the policy is consistent with guidelines of the World Bank. In project areas where the Decree has not been correctly affected, this Decree will be waived for DPs without legal or 75 legalizable rights of land use. All DPs residing, doing business or cultivating land in the ROW of VRSP roads and other project areas, as of the date of the DMS survey, are entitled to compensation and other rehabilitation measures defined in the RAP. Lack of legal rights to fixed assets will not bar DPs from entitlement to compensation. (g) In approving this Framework, the Government grants the above mentioned required waivers and agrees to waiver all other decrees, regulations, laws or components thereof that are inconsistent with OP 4.12, as well as authorizes the Ministry of Transport and local authorities to provide: (a) compensation at 100% replacement cost without deduction for depreciation and salvage materials, for land, houses and other assets taken by the project; (b) compensation or assistance package and resettlement assistance to all displaced persons regardless of their lack o f title to land or properties lost; and (c) rental allowances at 100%of the DP's current rental rate. G PUBLIC PARTICIPATION, CONSULTATION,COMPLAINTS AND GRIEVANCES i) Public Participation and Consultation DPs will participate throughout the various stages of the planning and implementation of the Inventoriesand RPs. For these purposes and priorto the preparationo fthe Inventories and RPs, the DPs will be informed o f the provisions of this Policy Framework at public meetings at local provincial and district levels as well as by the District Peoples' Committee and Communes Peoples' Committees. Each household DP will be fully informed by the Government through relevant District Peoples' Committee and/or Communes Peoples' Committees of their entitlements and rehabilitation choices under the respective Inventoryor RP. ii) Complaintsand Grievances Complaints and grievances related to any aspect of RPs, including the determined area and price o fthe lost assets, will be handled as follows: (a) As a first stage, DPs will present their complaints and grievances to the Commune People's Committee, which will have to provide a written response to the DP, within fifteen calendar days o f receiving the complaint. (b) Ifthe DP is not satisfied with the decision ofthe CPC, the DP may present the case to the District People's Committee or District Resettlement Committee within fifteen calendar days o f receiving the written response from the CRC authorities. The decision of the DPC or DRC should be sent to DP by no later than fifteen calendar days of receipt o fthe DPs appeal. (c) If the DP is not satisfied with the decision at the second level, the case may be submitted for consideration by the District Court or to Provincial People's Committee. DPs will be exempted from all administrative and legal fees. 76 H MONITORINGAND SUPERVISION i. ImplementationoftheRPswillberegularlysupervisedandmonitoredbytheGovernment incoordinationwiththe respective PRC and DRCs. The findingswill be recorded in quarterly reports to be furnishedto the Government. Internal monitoring and supervision will: (a) Verify that the baseline information of all DPs has been carried out and that the valuation of assets lost or damaged, and the provision of compensation, resettlement and other rehabilitation entitlements has been carried out in accordance with the provisions of this Policy Framework and the respective Inventory and RP. (b) Overseethat the RPs are implementedas designed and approved. (c) Verify that funds for implementing the RPs are provided to the respective GOV at local level (provincial/district) in a timely manner and in amounts sufficient for their purposes, and that such funds are used by the GOV inaccordance with the provisions of the RP. (d) Recordall grievances and their resolutionandensure that complaints are dealt with in a timely manner. .. 11. An independent agency or agencieswill beretainedby the GOV to periodically carry out external monitoring and evaluation o fthe implementationofthe RPS. The independent agencies will be academic or research institutions, non Governmental Organizations (NGO) or independentconsulting firms, all with qualified and experienced staff and terms of reference acceptable to the World Bank. ... 111. Inaddition to verifying the information furnishedinthe internal supervisionand monitoringreports, the external monitoring agency will visit a sample of 10%o f household DPS ineachrelevant province six months after each RP implementation to: (a) Determine whether the procedures for DPs participation and delivery of compensation and other rehabilitation entitlements have been done in accordance with this Policy Framework and the respective RP. (b) Assess if the Policy Framework objective or enhancement or at least restoration of living standards and income levels of DPs have beenmet. (c) Gather qualitative indications of the social and economic impact of Project implementation onthe DPs. (d) Suggest modification in the implementation procedures of the RPS, as the case may be, to achieve the principles and objectives ofthis Policy Framework. I COSTSANDBUDGET i. EachRPwillincludedetailedcostofcompensationandotherrehabilitationentitlements and relocation o f DPS, if that be the case, with a breakdown by agricultural land, 77 residential land, business land, houses, businesses and other assets. The cost estimates will make adequate provision for supervision, monitoring and management costs and contingencies. 11. Sources of fundingfor the various RP activities will be clearly specified inthe cost tables. J IMPLEMENTATIONARRANGEMENTS i. SourcesoffundingforthevariousRpactivitieswillbeclearlyspecifiedinthecost table. A detailed implementation schedule of the various activities to be undertaken will be included ineachRP. .. 11. Payment of compensation and furnishingof other rehabilitation entitlements (in cash or in- kind), except where long-term economic rehabilitation measures are required, and relocation ifthat be the case, will be completed at least one month prior to the initiation of civil works activities. ... 111. Administrative and legal fees: DPs will be exempt from all administrative and legal fees in connectionwith compensation determination, payment and RPs. K RESETTLEMENTPLANNING 1. Resettlement Plans The scope and level o f detail of the resettlement plan vary with the magnitude and complexity of resettlement. The plan is based on up-to-date and reliable information about (a) the proposed resettlement and its impacts on the displaced persons and other adversely affected groups, and (b) the legal issues involved inresettlement. An annual Resettlement Plan (RP) or Abbreviated RPs ( in case impacts on entire affected population by subproject are minor or fewer than 200 displaced persons) will be prepared by the respective Provincial Project Management Unit (PPMU) inaccordance with the provisions o f this Resettlement Policy Framework and OP 4.12. The RP or abbreviated RP will be furnished by the Government to the IDA for its reviewconcurrence. The RP covers the elements below, as relevant (1) Description o f the project; (2) Potential impacts; (3) Objectives; (4) Socioeconomic studies; (5) Legal framework; (6) Institutional Framework; (7) Eligibility; (8) Valuation of and compensation for losses; (9) Resettlement measures; (10) Site selection, site preparation, and relocation; (1l)Housing, infrastructure, and social services; (12) Environmental protection and management; (13) Community participation; (14) Integration with host populations; (15) Grievance procedures; (16) Organizational responsibilities; (17) Implementation schedule; (18) Costs and budget; (19) Monitoring and evaluation. An abbreviated RP will include of (1) a census survey of displaced persons and valuation of assets; (2) description of compensation and other resettlement assistance to be provided; (3) consultations with displaced people about acceptable alternatives; (4) institutional responsibility for implementation and procedures for grievance redress; (5) arrangements for monitoring and implementation; and (6) a timetable and budget. 78 Each RP or abbreviated RP will be completed no later than six months prior to the estimated date for commencement of the works under the respective road or segment thereof. Each RP will be furnished to IDA for consideration no later than four months prior to the actual initiation of the works under the Project. Compensation, resettlement and rehabilitation activities will only commence after IDA has found acceptable the respective RP and the GOV has approved it. The compensation, resettlement and rehabilitation activities will be completed at least one month before the beginningof works underthe respective road or segment thereof. .. 11. Baseline Information Census and Inventory: will include the following information for each DP household: 0 Numberofpersons and names; 0 Number, type and areaofthe houses lost; 0 Number and areaof allthe residentialplots lost; 0 Number,category and areaof agricultural land lost; 0 Quantity and types of crops and trees lost; 0 Businesses lost including structures, land and other fixed assets; 0 Productive assets lost as a percentage of total productive assets; 0 Quantity and category of other fixed assets affected by each sub-project; 0 Temporary damage to productive assets; 0 Loss of incomes and employment. The entitlement of assets and land affected are calculated based on the above information. Detailed socioeconomic survey o f the DPs describing their age, sex, ethnicity, education, occupation, estimates o f household expenditure patterns, skills possessed, savings and debts, and record of fixed and moveable assets. 79 Annex 11:ProjectPreparationand Supervision VIETNAM: RoadSafety Project Milestone Planned Actual PCNreview December 18,2003 December 17,2003 InitialPID to PIC December 19,2003 December 18,2003 Initial ISDS to PIC , December 19,2003 January 5,2004 Appraisal November 30,2004 December 17,2005 Negotiations February 7,2005 April 29,2005 BoardRVP approval March 8, 2005 June 7,2005 Effectiveness October 27, 2005 Closing December 31,2009 Key institutions responsible for preparation of the project: NTSC; Ministryof Transport, VRA; Vietnam Register; Ministryo f Public Security; Ministryo f Education and Training; and Ministry o f Health. Bank staff and consultants who worked on the project included: Name Title Unit Jerry A. Lebo Task Team Leader, Sr. Transport Specialist EASTR SimonD.Ellis Transport Specialist EASTR Anthony G.Bliss Senior Road Safety Specialist TUTDR PhuongThi MinhTran Operations Officer EASTR VinhQuoc Duong Operations Officer EASEN HongVu Operations Officer EASSD ThuThiMinhNguyen Operations Officer EASHD ImogeneJensen Senior Economist, Quality Reviewer EASTR Quyen Do Duong Finance Analyst EACVF HungViet Le Financial Management Specialist EACVF BehdadNowroozi Sr. Financial Management Specialist EAPCO Jennifer Thomson Sr. FinancialManagement Specialist EAPCO Irina Luca Sr. Procurement Specialist EAPCO Thang ChienNguyen Sr. Procurement Specialist EACVF HungKimPhung Sr. Finance Officer LOAGl DungAnhHoang Operations Officer EASTR Aurelio Menendez Sr. Transport Economist, Peer Reviewer LCFST Richard Scurfield Sector Manager, Peer Reviewer TUDTR Eva Jarawan LeadHealth Specialist, Peer Reviewer AFTH3 Nga Thi Viet Nguyen Team Assistant EACVF Christopher D e Serio ProgramAssistant EASTR Andrea Heggen Editor EASTR 81 Annex 12: Documentsinthe ProjectFile VIETNAM: RoadSafety Project A. Consultant'sReports Preparation of VietnamRoadSafety Project (Phase I),Inception Report. OPUS International Consultants and Transport Development Strategy Institute, Ministry of Transport, Vietnam, January 30,2004. Preparation of a National TrafJic Accident Database-A Study, Road Network Improvement Project. Consia Consultants, June, 2003. VietnamRoad Safety Project (Phase I),Project Implementation Plan, OPUS International Consultants andTransportDevelopment Strategy Institute, Ministry of Transport, Vietnam, November, 2004. Vietnam Road Safety Project (Phase I),Social Assessment, OPUS International Consultants and Transport Development Strategy Institute, Ministry of Transport, Vietnam, November, 2004. VietnamRoad Safty Project (Phase I),Environmental Assessment, OPUS International Consultants and Transport Development Strategy Institute, Ministry of Transport, Vietnam, November, 2004. VietnamRoad Safety Project (Phase I),Environmental Management Planfor Engineering Works, OPUS International Consultants and Transport Development Strategy Institute, Ministry of Transport, Vietnam, November, 2004. VietnamRoad Safety Project (Phase I),Report on Public Consultation. OPUS International Consultants andTransport Development Strategy Institute, Ministryof Transport, Vietnam, January 30,2004. B. BankStaffAssessments Identification Mission, September2002 PreparationMissions, December 2002, June 2003, and December 2003 Project ConceptNote andMinutesof Concept ReviewMeeting, December 2003 Pre-Appraisal Mission, June 2004 Appraisal Mission, December 2004 ProcurementCapacity Assessment, March2005 Financial Management Assessment, March2005 83 Annex 13: Statementof Loans andCredits VIETNAM: RoadSafetyProject lifference between expectei and actual Original Amount in US$ Millions disbursements (%) Project ID FY Purpose IBRD IDA GEF Cancel. Undisb. Orig F n Rev'd PO82604 2005 HIV/AIDS prevention 0 35 0 0 35 0 0 PO82627 2005 PaymentSystem& Bank Modem. 0 105 0 0 105 0 0 PO73763 2005 Water SupplyDevelopment 0 112.6 0 0 112.6 0 0 PO74688 2005 RuralEnergyI1 0 220 0 0 220 100 0 PO88362 2005 A~ianInfluanzaEmergencyRecovery 0 5 0 0 4.6 39.4 0 PO74414 2005 VN-GEFForestSecctor Development 0 0 9 0 9 100 100 PO66051 2005 ForestSector Development 0 39.5 9 0 39.5 100 100 PO82759 2004 PRSCIII 0 100 0 0 0 0 0 PO70197 2004 UrbanUpgrading 0 222.5 0 0 222.5 -258 0 PO65898 2004 VIETNAM WATER RESOURCESASSISTANCE 0 157.8 0 0 154.59 0 PO59663 2004 VN-RoadNetwork Improvement 0 225.26 0 0 230.18 67.1 0 PO75399 2003 PublicFinancialManagementReformProj. 0 54.33 0 0 59.25 85.4 0 Po71019 2003 VN-GEF Demand-SideManagement& Energy 0 0 5.5 0 5.5 74.9 0 PO44803 2003 VN-PRIMARYEDUC FORDISADVANTEGED CHI 0 138.76 0 0 146.41 67.5 0 PO59936 2002 VN -NorthemMountainsPovertyReduction 0 110 0 0 90.4 47 0 PO51838 2002 VN-PRIMARYTEACHER DEVELOPMENT 0 19.84 0 0 19.67 76.8 0 PO66396 2002 VN-SYSTEMENERGY,EQUITIZATION& RENE 0 225 0 0 221.93 79.1 0 PO72601 2002 VN RuralFinance11Project - 0 200 0 0 98.98 -85.2 0 PO73305 2002 VN-RegionalBloodTranshsionCenters 0 38.2 0 0 44.16 92.4 0 PO73778 2002 VN-GEF-SystemEnergyEquitization-Renewa 0 0 4.5 0 4.96 86.3 0 PO62748 2001 VN COMMUNITY BASEDRURAL INFRA - 0 102.78 0 0 92.63 44 0 PO52037 2001 VN-HCMC ENVMTL SANIT. 0 166.34 0 0 170.11 70 63.8 PO42927 2001 VN-Mekong Transport/FloodProtection 0 110 0 0 98.56 72.5 0 PO59864 2000 VN-2nd RuralTransport 0 103.9 0 0 28.76 22.9 0 PO42568 2000 VN COASTAL WetVProtDev - 0 31.8 0 0 27.05 75.4 0 PO56452 2000 VN-RURAL ENERGY 0 150 0 0 41.25 22.8 9.6 PO04833 1999 VN-UrbanTransport Improvement 0 42.7 0 8.19 13.65 46 20.6 PO04828 1999 VN-HIGHEREDUC. 0 83.3 0 0 48.94 49.3 48.3 PO04845 1999 VN MEKONGDELTA WATER 0 101.8 0 0 67.56 60.2 0 ~ PO51553 1999 VN-3 CITIESSANITATION 0 80.5 0 0 55.65 59.4 22.2 PO45628 1998 VN-TRANSMISSION& DISTR 0 199 0 0 99.85 45.3 20.7 PO04839 1998 VN FORESTPROT.& RUL DE - 0 21.5 0 0 13.87 55.6 29.9 PO04843 1998 VN-InlandWaterways 0 73 0 0 31.79 36.7 6.8 PO04844 1998 VN-AGRIC. DIVERSIFICATION 0 66.9 0 0 24.21 32.7 -3.8 PO04830 1997 VN-WATER SUPPLY 0 98.61 0 31.28 7.69 0 0 PO04838 1996 VN-NATIONAL HEALTH SUPPORT 0 101.2 0 2.35 19.9 28.5 0 Total: 3,542 2a 42 2,666 45% 85 VIETNAM STATEMENT OF IFCs Heldand DisbursedPortfolio InMillions ofUSDollars Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic. 2003 ACB-Vietnam 0.00 5.02 0.00 0.00 0.00 5.02 0.00 0.00 2002 AZ1AGF Vietnam 0.00 1.32 0.00 0.00 0.00 1.32 0.00 0.00 2002 CyberSoft 0.00 1.25 0.00 0.00 0.00 1.25 0.00 0.00 2002 Dragon Capital 0.00 0.00 2.00 0.00 0.00 0.00 2.00 0.00 2002 F-V Hospital 5.00 0.00 3.00 0.00 5.00 0.00 3.00 0.00 2003 GlassEgg 0.00 1.75 0.00 0.00 0.00 0.63 0.00 0.00 1998 MFL Vinh Phat 0.15 0.00 0.00 0.00 0.15 0.00 0.00 0.00 1997 Nghi Son Cement 14.87 0.00 0.00 9.15 14.87 0.00 0.00 9.15 2001 RMITVietnam 7.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1996 SMHGlass Co. 5.00 0.00 0.00 0.00 5.00 0.00 0.00 0.00 2003104 Sacombank 0.00 2.31 0.00 0.00 0.00 1.14 0.00 0.00 2002103 VEIL 0.00 8.00 0.00 0.00 0.00 8.00 0.00 0.00 1996 VILC 0.00 0.75 0.00 0.00 0.00 0.75 0.00 0.00 Total portfolio: 32.27 20.40 5.00 9.15 25.02 18.11 5.00 9.15 Approvals PendingCommitment FY Approval Company Loan Equity Quasi Partic 2002 F-V Hospital 0.00 0.00 0.00 0.00 2000 Interflour 0.01 0.00 0.00 0.01 1999 MFL Chau Giang 0.00 0.00 0.00 0.00 1999 MFL MinhMinh 0.00 0.00 0.00 0.00 2000 MFL Mondial 0.00 0.00 0.00 0.00 2000 MFL-'4.4 0.00 0.00 0.00 0.00 Total pendingcommitment: 0.01 0.00 0.00 0.01 86 Annex 14: Country at a Glance VIETNAM: Road Safety Project East POVERTY and SOCIAL Asia 8 Low- Vietnam Pacific income Development diamond' 2003 Population,mid-year (millions) 81.3 1,855 2,313 I GNIpercapita (Atlas method, US$) 480 1,080 450 Life expectancy GNI(Atlas method, US$billions) 30.0 2,011 1,038 Average annual growth, 1997-03 Population PA) 1.2 10 1.9 ,, Lab0rforce PA) 16 11 2.3 GNi M o s t recent estimate (latest year available, 1997-03) Poverty(%ofpopulationbelownationalpovertyline) 29 Urbanpopulation (%oftotalpopulation) 26 40 30 Lifeexpectancyat birth (years) 70 69 58 Infant mortality (per 1000livebirths) 20 32 82 Childmalnutrition(%of childrenunder5) 30 5 44 1 Access to improvedwatersource Access to an improved water source (%ofpopulation) 77 76 75 Illiteracy(%ofpopulation age a+) 4.6 13 39 Gross primaryenroliment (%ofschool-age population) 115 111 92 I -Vietnam Male Il7 1P 99 Low-income group ~ Female It3 111 85 KEY ECONOMIC RATIOS and LONG-TERM TRENDS 1983 1993 2002 2003 Economic ratios' GDP (US$ billions) 0.2 35.1 39.2 Gross domestic investment/GDP 24.3 32.1 35.1 Exports of goods and services/GDP 28.7 55.5 59.6 Trade Gross domestic savings/GDP 15.5 28.1 27.1 Gross national savings/GDP 0.2 33.5 32.6 Current account balanceiGDP -7.0 -10 -4.7 interest paynentslGDP 0.4 0.8 0.9 Total debt/GDP 183.4 38.1 37.8 Total debt servicdexports 110 5.5 5.1 Present valueof debt/GDP Present value of debt/exports Indebtedness 1983-93 1993-03 2002 2003 2003-07 (average annualgmwfh) -Vietnam GDP 5.6 7.2 7.0 7.2 7.5 ~ Low-income group GDP oercaoita 3.2 5.7 5.8 6.1 6.4 STRUCTURE of the ECONOMY 1983 1993 2002 2003 I Growth of investment and GDP (%) (%of GDP) I Agriculture 29.9 23.0 218 Industry 28.9 30.5 40.0 Manufacturing 15.2 20.6 20.8 Services ........ 412 38.5 38.2 - I O 4 I Privateconsumption .. 77.2 65.7 66.0 98 99 00 01 02 03 Generalgovernment consumption 7.3 6.2 6.9 imports of goods and services .. 37.5 59.6 67.6 -GDI -GDP 1983-93 1993-03 2002 2003 1 Growth of exports and imports ( O h ) (average annualgrowfh) Agriculture 3.3 4.2 4.1 3.2 industry 5.8 13.8 9.4 11.2 Manufacturing 2.7 11.4 116 t3.0 Services 8.1 6.2 6.5 5.0 Privateconsumption 5.1 7.6 7.4 General government consumption 3.6 5.4 6.2 I 98 a9 00 01 02 Gross domestic investment It7 13.6 E 2 -Exports 1-0-I~~ports imports of goods andservices .... 20.6 22.2 27.8 Vietnam PRICES and GOVERNMENT FINANCE 1983 1993 2002 2003 i Inflation (%) Domestic prices I (%change) 10- Consumer prices 8.4 4.0 3.0 5 Implicit GDP deflator 17.4 4.O 5.4 Government finance 0 (%of GDP,includes current grants) - Current revenue - 21.7 22.0 22.9 I.5 98 99 00 01 02 03 Current budget balance 2.2 6.2 6.2 Overall surplusldeficit -1.9 -2.2 -GDPdeflator -CPI TRADE 1983 I993 2002 2003 (US$ millions) Export and import levels (US$ mill.) Total exports (fob) 2,850 6.706 20,76 30 000 T Rice 363 726 721 Fuel 844 3,270 3,821 Manufactures 8,415 11,200 Total imports (cif) 4,299 29,733 25,227 Food 84 Fueland energy 650 2,ov 2,433 I Capital goods 1,441 5.880 7,500 Export price index(995zX)O) 97 98 Q9 00 01 02 03 import price index(995=X)O) Exports oinports Terms of trade (W95=X)O) BALANCE o f PAYMENTS 1983 1993 2002 2003 (US$ millions) Current account balance to GDP (%) Exports ofgoods and services 3,757 8,656 23,360 Importsof goods andservices 4,299 21,79 26,490 Resource balance -682 -442 -1,523 -3,130 Net income -73 -556 -741 -880 Net current transfers 25 70 1,896 2,157 Current account balance -730 -928 -368 -1,853 Financing items (net) 556 524 832 3,753 Changes innet reserves 174 404 -464 -1,900 97 98 Q9 00 01 02 03 Memo: Reserves includinggold (US$ millions) Conversion rate (DEC, local/US$) 1.0 0,641.0 15,279.5 15,463.0 EXTERNAL DEBT and RESOURCE FLOWS 1983 1993 2002 2003 (US$ millions) i Composition o f 2003 debt (US$ mill.) Total debt outstanding anddisbursed 53 24.68 13,349 14,794 i IBRD 0 0 0 0 IDA G 786 44 57 1.715 2,142 1,421 , B 2,%2 Total debt service 4l7 I097 1,205 IBRD 0 0 0 IDA 1 13 13 Composition of net resource flows Official grants 145 242 245 Official creditors -140 680 1.798 Privatecreditors -37 -649 -638 Foreigndirect investment 926 1,130 1,200 Portfolio equity 0 0 0 I E:8,716 World Bank program Commitments 0 229 463 518 A - IBRD E - Bilateral Disburgements 9 0 261 574 8-IDA D-Othermrltilateral F-Private Principal repayments 0 1 2 2 C-IMF G-Short-term MAP SECTION 102° 104° 106° 108° 110° To To Kaiyuan, Kaiyuan, Kunming To C H I N A Kunming Kunming 4C 4 Hà Giang 5 34 Cao Bang` 100 2 Lào Cai 279 279 4D 4E 4A To 1 3 Nanning 9 To 22° Lai 8 ` Hong Bac Kan Qinzhou, 22° Châu 279 3 (Red) Nanning 70 Tuyên Lang , 12 Quang 1B Son 32 13 1 Da Thai 279 Nguyen 10 2 (Black) Yên Bái 37 7 2C 18C 32C 2B 31 18 12 4B Co To Diên Biên Phú Viêt Trì Vinh Yen 37 14 Vinh Thuc Son La 32B Bác Giang 11 16 Cai Chien 37 32 Bác 279 15 18 6 23 Cai Bau 4G Ninh183 18 To 43 LHL 3817 20 6 Ha Long Co To Muang 5 Hà Dông Xai Hòa Bình HANOIHaí 21B 43 18 19 Dúong Hai Phong 21 Cat Ba 21 Hung Yen 10 22 Hà Nam Halong 23 39 24 15 12B Ma Thái Bình Bay Nam To Luang Dinh Prabang 217 Ninh Bình 26 21 25 10 20° Bach Long Vi 20° 27 47 CORRIDOR 1 To Xiang Khoang, Thanh Hoa Luang Prabang 48 Me G u l f LAO PEOPLE'S 28 1 Nghi Son Hainan I. 7 Ca DEMOCRATIC REPUBLIC o f (China) 15 46 Vinh 8B To n k i n 8 29 Hà Tinh~ To 18° Khammouan 18° Mekong 12A Dông Hoi 30 To Xe Po 15 1 Con Co Dông Hà 9 31 49B To Xe Po, Huê Savannakhet 14 49 32 33 16° Dà Nang 16° Cham T H A I L A N D 14B 14D To Pakse 34 14E Tam Ky 102° Ly Son Re 24B Quàng Ngai 14 35 V I E T N A M 1 40 36 ROAD SAFETY PROJECT 24 Kon Tum 38 DEMONSTRATION CORRIDORS Play Cu 14° 19 14° Quy Nhon 19 37 Xanh PROTECTED AREAS AIRPORTS 25 30 NATIONAL ROADS PORTS Da Rang 39 14 RAILROADS PROVINCE CAPITALS Tuy Hòa 14C RIVERS NATIONAL CAPITAL C A M B O D I A 40 Buôn Ma 26 PROVINCE BOUNDARIES Thuôt Gom INTERNATIONAL BOUNDARIES 42 To Kratie 41 1CNha Trang 27 Tre Gia Nghia To Kompong Dà Lat 12° PROVINCES: 12° Cham 20 27B 43 14 45 1 Lai Chau 33 Da Nang Dông 44 27 2 Dien Bien 34 Quang Nam Xoái 13 3 Lao Cai 35 Quang Ngai Phan Rang- 28 Tháp Chàm 4 Ha Giang 36 Kon Tum Mekong 22B 46 20 5 Cao Bang 37 Gia Lai 48 Tây Ninh 47 6 Son La 38 Binh Dinh Thu Dãu 49 7 Yen Bai 39 Phu Yen Môt 22 8 Tu Yen Quang 40 Dac Lac 50 1 Phan Thiêt 9 Bac Can 41 Dac Nong Biên Hòa To 10 Lang Son 42 Khanh Hoa Kampong 52 Ho Chi 56 30 54 1 Minh 51 55 11 Phu Tho 43 Binh Phuoc Som 62 50 51 56 Cao Lanh Phu Quy 12 Vinh Phuc 44 Lam Dong 53 Tan AnCity CORRIDOR 2 Long Xuyên 13 Thai Nguyen 45 Ning Thuan 80 Vinh Long ~ My~, Tho 14 Bac Giang 46 Tay Ninh 60 Vuñg Tàu Phu 57 Bên Tre 80 54 15 Quang Ninh 47 Binh Duong 91 Quoc Nghe 80 CORRIDOR 3 60 57 53 55 10° 16 Ha Noi 48 Dong Nai 10° Rach Giá Cân 10° Tho' Hai 54 17 Bac Ninh 49 Binh Thuan Tre 59 60 Trá Vinh 61 18 Ha Tay Gulf 50 T.P. Ho Chi Minh Rai 61 Vi Thanh 1 58 53 MEKONG DELTA 19 Hung Yen 51 Ba Ria-Vung Tau 60 Nam Du 62 20 Hai Duong 52 Long An 63 Sóc Trang 1 21 Hai Phong 53 Tien Giang 0 25 50 75 100 125 150 KILOMETERS 63 22 Hoa Binh of 54 Dong Thap Tho Chu 23 Ha Nam 55 Ben Tre Bac Liêu 24 Thai Binh 56 An Giang Cà Mau 0 25 50 75 100 MILES 25 Ninh Binh 57 Vinh Long 1 64 26 Nam Dinh Thailand 58 Tra Vinh This map was produced by the Map Design Unit of The World Bank. 27 Thanh Hoa 59 Kien Giang Con Dau The boundaries, colors, denominations and any other information shown 28 Nghe An 60 Can Tho on this map do not imply, on the part of The World Bank Group, any IBRD MA 29 Ha Tinh 61 Hau Giang judgment on the legal status of any territory, or any endorsement or 30 Quang Binh 62 Soc Trang Khoai Y acceptance of such boundaries. 33693 2005 31 Quang Tri 63 Bac Lieu 32 Thua Thien102 Hue ° 64 Ca Mau 104° 106° 108° 110°