Ha Noi Metro Rail System Project (RRP VIE 40080) DEVELOPMENT COORDINATION A. Major Development Partners: Strategic Foci and Key Activities 1. In the transport sector, the Asian Development Bank (ADB) focuses on road, railway, and urban transport subsectors, and capacity development of the Ministry of Transport and its line agencies. ADB's major development partners are the World Bank, the Japan International Cooperation Agency (JICA), the Australian Agency for International Development, Agence Française de Développement, and Korean Exim Bank. 2. The urban transport sector has been supported by ADB, the World Bank, and the European Investment Bank, as well as by bilateral aid from France, Germany, Japan, the Netherlands, the People’s Republic of China, and Spain, which have contributed to assist sector development. Major support for urban transport has focused on the road and urban rail subsectors (accounting for well over half of all assistance), with support also provided for other public transport and institutional capacity development. Assistance for urban public transport has included technical assistance (TA) and lending to the government, covering master plan development, bus and metro systems, the integration of multimodal infrastructure, and institutional reforms. 3. An urban transport master plan that guides all developments in public transport was developed1 in Ha Noi with assistance from the Japan Bank for International Cooperation, and approved by the Prime Minister in 2008. Currently, four priority metro lines are being prepared and are expected to be operational in 2017–2018. ADB will provide $293 million for the metro line 3 project, with cofinancing of $563 million from DGTresor, Agence Française de Développement, and the European Investment Bank. A second phase of metro lines (either new lines or priority line extensions) will commence around 2016; these lines are expected to be operational by 2025. As a result, over half of the total network will be established by 2025, thereby providing the main backbone of an integrated multimodal network in Ha Noi. Under phase 2, ADB is expected to either cofinance the extension of metro line 3 or to work with the Government of Japan for the development of the second stage of metro line 1 or 2 extension. 4. The ADB loan for metro line 3 in 2011 will be complemented by a major integrated sustainable urban transport study, under a separate loan in 2012, that will further develop the Ha Noi public transport system through: (i) demand forecasting and integrated fares and ticketing, (ii) bus restructuring and intermodal facilities, and (iii) sustainable transport policy developments. ADB, with cofinancing under the Clean Technology Fund, will further support the development of an integrated public transport system through the Strengthening Sustainable Urban Transport for Ha Noi Metro Project that will ensure (i) bus and other services connect well to stations, (ii) metro stations are well integrated, and (iii) necessary policy measures are implemented to both promote public transport and discourage private transport modes. 5. TA in support of urban public transport has focused on developing operation and maintenance entities for metro systems; developing integrated stations, capacity building and support for metro implementation; developing a public transport authority in Ha Noi; and facilitating public–private participation in urban transport. Lending has supported the development of seven metro lines, four in Ha Noi and three in Ho Chi Minh City (HCMC), and two bus rapid transit lines in Ha Noi. Most assistance has been provided for Ha Noi or HCMC, but some assistance is provided in the larger secondary cities of Hai Phong and Da Nang. 1 JICA. 2007. The Comprehensive Urban Development Programme in Hanoi Capital City. {City}. 2 Major Development Partners Development Partner Project Name Duration Amount Transport and Information and Communication Technology (urban transport) ADB, EIB, KfW Ho Chi Minh City Urban Mass Rapid Transit Line 2 2006–2016 $1.38 billion JBIC Ho Chi Minh City MRT Line 1 2008–2015 ¥20.9 billion Government of Ho Chi Minh City MRT Line 5 Spain 2009–2016 $1,3 billion ADB, AFD, Hanoi Pilot Light Metro Line 3 DGTPE, EIB 2005–2015 $1.05 billion JBIC Hanoi Metro Line 1 2008–2016 ¥4.7 billion JBIC Hanoi Metro Line 2 2006–2016 ¥14.7 billion JBIC Hanoi City Transport Network Improvement 1999-2010 ¥12.5 billion PRC Hanoi Metro Line 2A 2008–2015 $0.80 billion World Bank Hanoi Urban Transport Development Project 2007–2013 $165 million World Bank Hai Phong Urban Transport Project 2008–2013 $89 million GIZ, KfW Da Nang Urban Development Project 2008–2012 $65 million ADB = Asian Development Bank, AFD = Agence Francaise de Developpement, DGTPE = Direction Générale du Trésor et de la Politique Économique, EIB = European Investment Bank, JBIC = Japan Bank for International Cooperation, MRT = mass rapid transit, PRC = People’s Republic of China. Sources: ADB, JICA, and World Bank publications. B. Institutional Arrangements and Processes for Development Coordination 6. The annual consultative group meetings, which are co-chaired by Ministry of Planning and Investment and the World Bank, are the main platform for the government and development partners to review progress and issues related to socioeconomic development and official development assistance. Transport partnership group meetings, organized by JICA, are held every 6 months to discuss development issues in the transport sector. The medium- to long- term transport strategies of the government and its development partners have been discussed in recent group meetings, with members agreeing that Viet Nam faces a large financing gap in meeting urgent transport sector needs, which are required to sustain its socioeconomic development. 7. Urban transport is coordinated through city people’s committees, which are responsible for transport within city limits. In the two major cities, Ha Noi and HCMC, other central government departments2 have planning and implementation control of major infrastructure developments and a national steering committee controls coordination. Separate authorities or agencies have been established to implement and operate the different transport modes, and in both cities establishment of a public transport authority is proposed to ensure all transport modes are integrated. 8. International financiers coordinate urban transport sector support through informal meetings on projects or modalities, usually meeting quarterly. The urban transport sector is moving toward a program-based approach but at a project level, with leadership by city people’s committees through approved urban transport master plans that provide a comprehensive plan and coordination objectives. However, formal development coordination and harmonization are 2 Viet Nam National Railways, Viet Nam National Railway Authority, and the Ministry of Transport. 3 limited, as is the use of local systems. Major investments over the next 5 years are expected to strengthen these weak areas in stages to ensure that a program-based approach is used in the long term for project loans for urban transport development in major cities. 9. The project builds partnerships through cofinancing arrangements and cooperation that extends beyond the project level into development in other cities, and also through the integration of common issues that affect separate projects financed by disparate development partners. In urban rail, this includes coordinating operation and maintenance, ticketing, and fares systems and coordination at interchange stations, including multimodal interchanges. At an institutional level, development partners generally support a common approach to policy and organizational reforms needed to ensure the establishment of sustainable integrated public transport. The coordination of TA among financiers is well established, with duplication of effort on common issues largely avoided. C. Achievements and Issues 10. Urban transport master plans have been approved that seek to expand public transport network capacity to meet 45%–50% of demand. An improved urban transit network is vital to meet the increasing travel demand in these growing cities. For urban transit, the demand will be met through a combination of metro lines along major urban corridors (with future extension of some lines to regional growth centers), and significant expansion of the bus network, including bus rapid transit lines. To ensure growth in urban transit ridership (i) all modes of urban transit should be integrated at common terminals or multimodal transfer points; (ii) bus and rail schedules should be coordinated; and (iii) common standards employed for operations; safety and emergency services; and maintenance, including ticketing systems. 11. The project represents ADB’s second intervention3 in the urban transport sector in Viet Nam. ADB has closely coordinated with development partners to properly address the emerging urban transport sector issues in its loan and TA projects. ADB has also successfully established cofinancing arrangements. Although there have been no previous urban transport achievements, the project itself has managed to work with the government and the Ha Noi People’s Committee to ensure a comprehensive multimodal and integrated approach will be developed for metro line 3, through the large TA project and mobilization of significant global climate change funds for implementation of non-metro components. D. Summary and Recommendations 12.