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Central Region Livelihood Improvement :  Viet Nam,Soc Rep of :Go to Project Summary

Central Region Livelihood Improvement :  Viet Nam,Soc Rep of

Timetable  |  Financing Plan and Loan Utilization  |  Project Outcome  |  Implementation Progress  |  Status of Covenants

Loan Name Central Region Livelihood Improvement
Country Viet Nam,Soc Rep of
Loan Number 1883
Project Number 33301- 01
Fund Source/Amount[Approved]
Asian Development Fund US$43.09  million
Thematic Classification Economic growth
Social Development
Project Outcome
Description of Outcome 1. Improved household food security.
2. Improved household incomes.
3. Developed Communities.
4. Strengthened Institutions.
5. Established Project Management System
[Taken from the Project Framework]
Progress Toward Outcome 1. Improved household food security
- Women's Union participated
- Household food security promoters selected and trained, and household food security groups established
- Home garden demonstrations and training provided
- Poultry and subsidized vaccination program for Newcastles disease developed
- Fish production developed
- Clean water supplied
- Training in nutrition education and improved hygienic practices for target households provided

2. Improved household incomes.
- Savings/ credit packages provided
- District-based DARD extension centers participated
- Training in agricultural production provided
- Demonstrations focused on the opportunities and problems identified by farmers
- Training for village and commune animal health workers and district livestock specialists provided
- Demonstrations for nurseries and forestation provided
- Market studies consultants engaged
- Small-scale infratructure projects implemented.

3. Developed Communities.
- NGO engaged
- District support team mobilized
- Commune facilitators selected and trained
- Common interest groups established
- Procedural manual for CIGs developed
- Commune socioeconomic development plans (CDPs) prepared
- Community training in key elements of planning and administration provided
- Consultant engaged for GIS-based surveys and development of management plans for common resources
- Non-credit support provided to local microenterprises

4. Strengthened Institutions.
- Training in implementing the CDP provided to CPMU members responsible for the CDP process and concerned district and provincial staff
- Training in PRA and FFS techniques and communication skills provided to provincial, district staff, DST members, WU and commune staff
- Training in microenterprise facilitation provided to provincial, district staff, DST members, WU and commune staff
- Technical training in subject matter identified as important by communities provided

5. Established Project Management System
- Provincial Project Management Units established
- Commune Project Management Units established
Implementation Progress
Description of Project Outputs 1. Household Food Security Improved
2. Household Incomes Improved
3. Communities Developed
4. Institutions Strengthened
5. Project management system established.
Status of Implementation Progress (Outputs, Activities and Issues) 1. Household Food Security Improved
WUs have actively participated in implementing this component. A large number of activities were already undertaken under this component. As of 30 September 2009, in total the achievements are follows:
 Selection and training of household food security promoters (HFSPs) and establishment of HFS groups: 1,063 HFSPs were selected and trained, 673 HFS groups were established with 11,219 members.
 Home garden demonstrations and training: 621 demonstrations were implemented to benefit 3,872 households. 395 training courses were organized for 10,662 participants.
 Support to development of home gardens: 11,518 households were supported with technical design/ training in cultivation technique/ vegetable seeds/ seedlings/ farming tools/ sprinkles/ rice threshers/ fertilizer.
 Development of poultry and subsidized vaccination program for Newcastles disease: No activity was implemented in TTH because of the outbreak of Avian Flu. In QB, 36 communes were subsidized vaccination program for Avian Flu. In QT and KT, 174 demonstrations were implemented to benefit 439 households and 241 training courses were organized for 7,230 participants.
 Development of fish production: 475 demonstrations were implemented to benefit 2,431 beneficiary households. 80 households were supported with 16,000 fish fingerlings. 509 training courses were organized for 13,815 participants in fish production technique.
 Clean water supply: 32,402 households have been supplied with clean water.
 Support to replication of good demonstrations: 14,476 households were supported to replicate demonstrations of home gardens, poultry and fish production development.
 Support to training in nutrition education and improved hygienic practices for target households: 409 nutrition models were implemented to benefit 8,501 children. 381 training courses were organized for 9,110 participants in nutrition improvement. 445 training courses were organized for 11,711 participants in hygienic practices. 347 WCs were constructed for 347 poor households.

2. Household Incomes Improved
2.1. Microfinance Services Sub-component:
As of 30 September 2009, 100% of the net loan allocated for this sub-component ($6.02 million) was disbursed to VBARD. In total, credits were provided by VBARD to 15,572 households including 375 micro-enterprises to finance agricultural inputs, livestock and fishpond development, agricultural tools, equipment for small-scale agro-processing, weaving and tailoring, and small machinery maintenance facilities. On average, 53% and 41% of the borrowers were women and ethnic minorities, respectively. 536 credit groups have been established with assistance of local WUs. The Project also facilitated poor households to have access to other credit resources available in the project area. 361 training courses were organized for 10,912 participants in savings and credit methodologies. The local WUs have actively facilitated implementation of this component by providing credit training courses to the project beneficiaries. However, total amount of current savings is only VND522 million as most of the beneficiaries still have no saving.

2.2. Agricultural Technical Support Sub-component:
12 provincial and district extension centers and 46 other local service providers were engaged to implement this sub-component. In total, 3,617 demonstrations were implemented to benefit 21,786 households. These demonstrations focused on high production crops, livestock development, forestation and nurseries to address the opportunities and problems identified by farmers. 7,664 households were supported with materials/equipment/seeds/fertilizer/seedlings for forestation, bee raising and livestock shelters. 2,695 training courses were organized for 75,669 participants in cultivation techniques, livestock development, nursery and forestation. The Project provided support to 20,344 households for replicating good demonstrations. 4,870 village animal health workers and district livestock specialists were trained to improve their ability to identify key diseases and provide an effective vaccination service. Animal health equipment were provided to the project communes of QT and KT. The PPMUs engaged five local organizations to carry out detailed market studies of on-farm and off-farm products as well as non-timber forest products.

2.3. Rural Infrastructure Development Sub-component:
The Project funded implementation of roads, water supply and irrigation schemes, and other rural infrastructure, which are yielding benefits. In total, 3,411 rural infrastructure works prioritized by the local communities were implemented. They include (i) construction of 212 water supply schemes and 1,352 wells; (ii) implementation of 435 rural roads of about 582.4 km in total; (iii) building of other 289 transport works of suspension bridges, concrete bridges, spillways, embankments, fords and culverts; (iv) rehabilitation of 283 old small-scale irrigation schemes and construction of 85 new small-scale irrigation schemes for about 3,061 ha in total; and (v) building of 747 community houses and eight rural markets. 158 training courses on O&M planning and implementation were organized for 4,524 participants. The Project also financed O&M expenses of other 106 rural infrastructure works in TTH. Details are given in Appendix 6 for each of the project provinces.

The storm Ketsana, which come on 27 and 28 September 2009, had badly damaged and totally destroyed 181 and 22 infrastructure works financed by the Project, respectively.

3. Community Development Component
With assistance of the NGOs and 169 experts of 12 district support teams (DSTs) in four project provinces, 372 commune facilitators (CFs) were selected and trained for 153 project communes, and 1,084 common interest groups (CIGs) were established. Village and commune development plans (VDPs and CDPs) were prepared for 1,197 villages and 153 communes and being implemented since 2006. The ethnic minorities were included in project planning, decisions, implementation and benefits, and attention was paid to improve understanding and appreciation of their culture, indigenous knowledge and livelihood strategies, and to make implementation more compatible with their priorities, language skills and learning styles. The procedural manuals for CIGs were prepared by NGOs and provided to the PPMUs, these manuals consist of templates that can be rapidly adopted by CIGs to fit their management and administrative needs.

In total, 124 training courses were organized for 3,303 participants in key elements of planning and administration. GIS-based maps and packages of computers and software were procured for local agencies involved with the Project. The Project provided non-credit support to eight micro-enterprises and 170 households to develop their small scale business. 61 domestic and international study tours were organized for 1,665 participants. For community development facilitation and propaganda, 247 propaganda boards, 175 VCDs, 6,351 sets of documents and books, 43,050 leaflets, 109 bookcases, 450 sets of equipment for community houses and 36 fridges were provided to the project communes and villages.

4. Institutional Strengthening Component
A number of activities were undertaken to strengthen the institutional capacity for implementing the Project at provincial, district, and commune levels. CPO facilitated exchange of experience and mutual problem-solving through inter-provincial workshops, and VBARD promoted effective procedures for sharing ideas among provinces. In total, 850 commune level staff and 106 officials at district and provincial levels, who were responsible for VDP and CDP processing, were trained in CDP implementing. 1,712 provincial, district and commune staff were trained in participatory rural appraisal (PRA) and farmer field school (FFS) technique and communication skills. 865 training courses were organized for 19,093 participants in a number of subject matters identified as important by communities. 49 training courses in micro-enterprise facilitation were organized for 1,380 participants.

5. Project Support Component:
- All four Provincial Project Management Units (PPMUs) have been established.
- All 153 Commune Project Management Units have been established.
The Project provided the EAs, PPMUs and CPMUs with requisite resources including incremental staff for project management and field-level implementation supervision, office space, office equipment and vehicles. The international and domestic consultants and NGOs that were financed by DFID grant actively assisted the CPO and PPMUs in implementing the project activities from 2004 to 2007. Contract of the Package 1 consultants was expired on 30 September 2007. Contracts of the Package 2 consultants and six NGOs were expired on 31 December 2007. The Loan Agreement was adjusted for using a part of ADB loan to finance services of domestic consultants to support CPO and PPMUs after 31 December 2007. In August 2008, CPO recruited the Technical Assistance and Capacity Building Company Limited to provide technical assistance to CPO, VBARD and PPMUs in evaluation of the Project and preparation of PCR in accordance with the requirements of the Government and ADB
Linkage to Country/Regional Strategy The Government and other stakeholders have agreed that ADB will support the Government's vision of economic modernization and poverty reduction through a focus on making growth and the structural transition pro-poor and sustainable. This will entail emphasis on rural areas and smaller urban centers, particularly in the central region of Viet Nam, combined with national interventions in pro-poor sustainable economic growth, social development, and good governance. Accordingly, ADB will increasingly focus on the investment and policy conditions that will promote rural development, agricultural diversification, and off-farm employment in rural areas, with emphasis on small and medium enterprise development. Continuation of policy reforms in agriculture will be supported to enhance rural standards of living and a vibrant and competitive agriculture sector. ADB operations will continue to support the role of the private sector in marketing and trade, land tenure reforms and issuance of land titles in agriculture and forestry, commercialization and reform of state-owned enterprises, and promotion of domestic small-scale enterprises. In the area of agricultural and rural finance, ADB' focus could include rural finance for private agro-industries and microfinance for small and poor farmers, and the related legal and regulatory framework for microfinance.

Rural poverty reduction will also be pursued through projects targeted at a small number of contiguous provinces that face similar constraints and opportunities, and are in the central region of Viet Nam. Similar to the proposed project, other operations will be designed, with probable focus on coastal communes in the central region and separately for central highlands provinces. These projects will emphasize addressing the link between natural resource depletion and poverty. Such area-based approaches will need to be complemented by the appropriate infrastructure investment, planned and implemented in a subregional perspective with sector projects covering several provinces.

ADB's poverty reduction strategy considers microfinance can increase the physical capital of the poor, while simultaneously building human and social capital. The goal of ADB's microfinance strategy is to ensure permanent access to institutional financial services for the majority of the poor and the purpose is to support microfinance system that can provide diverse services of high quality. The strategy focuses on (i) creating a policy environment conducive to microfinance, (ii) developing financial infrastructure, (iii) building viable institutions, (iv) supporting pro-poor innovations, and (v) supporting social intermediation. Emphasis is placed on designing projects in close consultation with stakeholders, including potential clients, to ensure that assistance is client-focused, demand-driven, and appropriately priced and delivered. Support to viable institutions that can set in motion such a process has been emphasized, along with reform of development finance institutions that continue to undermine the microfinance sector.
Geographical Location Quang Binh, Quang Tri, Thua Thien Hue, Kon Tum Provinces
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  Environment B
Summary of Environmental and Social Issues The Project has been classified in ADB's Environment Category B, and an initial environmental examination (IEE) has been prepared in accordance with ADB's Environmental Assessment Requirements and Environmental Review Procedures. The IEE found that the Project will not create any significant changes in the social, physical, or biological environment and will conform to ADB's guidelines on environmental considerations. The potential impacts are primarily construction related. The type of road construction will be rehabilitation or improvement of existing alignments. Little if any land acquisition is expected and mitigation measures to address any potentially minor adverse impacts have been detailed in the monitoring plan of the IEE. Microenterprises developed by the Project through microfinance provision will also have no significant adverse impacts. Several enterprises (e.g., sloping land agriculture development, and horticultural development) should enhance watershed management and reduce soil erosion. A possible exception might arise in the case of any subproject areas that are within, or adjacent to, existing or planned protected areas. An in-depth study, including a rapid biodiversity assessment, to assess potential environmental impacts of the Project on the protected areas was completed and the results incorporated into the IEE and summary IEE reports. In view of the importance of these areas, an independent group such as International Union for the Conservation of Nature and Natural Resources or World Wide Fund for Nature will be contracted to review SDPs of all communes within or adjacent to existing or planned protected areas (para. 94, xi-xiii).

75 percent of the population can be defined as poor according to the General Statistics Office/World Bank overall poverty line in Viet Nam. 53-92 percent of households in represented communes were ranked by the residents as poor or very poor. Eighty seven percent of indigenous peoples' households and 81 percent of female-headed households fall below the World Bank's overall poverty line. They are marked by illiteracy, poor housing, low level of household assets and equipment, poor health and access to services, and no cash or savings. Indigenous peoples in the project area are facing an influx of better-educated and richer Kinh. Women play a crucial role in the household food economy, and it will be vitally important that women are consulted and included in all aspects of project implementation.

The Project will address the needs and concerns of the rural poor. Approximately 70 percent of the Project's primary target beneficiaries will be indigenous peoples. Efforts will focus on improving farming systems and diversifying incomes, to enable indigenous peoples to participate more fully in the market economy. Diversification into perennial and industrial tree crops will be promoted as an area in which indigenous groups can achieve an advantage. The Project will employ participatory processes and institute a planning system based on community demand. A community organizing approach will be implemented to ensure the fullest participation by beneficiaries and that project activities address priority development issues identified by the community.
Consultations Planned or Carried Out Stakeholder Consultations Undertaken.
Responsible ADB Officer Ho Le Phong
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Vietnam Resident Mission
Executing Agencies Soc. Rep. of Viet Nam
Viet Nam Bank for Agriculture and Rural Dev't.
  Tran Ngoc Son
  Representative, VBARD Regional Rep. Office
Provincial People's Committee of Kon Tum Province
  Tran Van Chi
  Project Director, Kon Tum PPMU
  dagnmtkt@dng.vnn.vn
Provincial People's Committee of QuangBinhProvince
  Nguyen Van Tuyen
  Project Director, Quang Binh PPMU
  giamngheoqb@dng.vnn.vn
Provincial People's Committee of Quang TriProvince
  Thai Xuan Lam
  Project Director, Quang Tri PPMU
  bqldagnqt@dng.vnn.vn
Provincial People's Committee-Thua ThienHueProvinc
  Le Dinh Khanh
  Project Director, Thua Thien Hue PPMU
  dagntinhtthue@vnn.vn
Timetable
Appraisal 23 May 2001 to 09 Jun 2001
Board Approval 17 Dec 2001
Last Review Mission 19 Oct 2009
CLOSING
Loan No. Approval Signing Effectivity Original Revised Actual
1883-VIE-01(SF) 17 Dec 01 02 Apr 02 15 Sep 02 30 Sep 07 30 Sep 09 -
1883-VIE-02(SF) 17 Dec 01 02 Apr 02 15 Sep 02 30 Sep 07 30 Sep 09 -

Financing Plan Top Loan Utilization
  TOTAL ( Amount in US$ million)
Proj Cost 76.000
ADB 43.100
DFID 16.400
Benef'ries 1.300
Govt. 15.200
Date ADB OTHERS Net Percentage
Cumulative Contract Awards
Oct 09 44.746 97%
Cumulative Disbursements
Oct 09 44.355 96%
Top Status of Covenants
Category Sector Environmental Social Financial Economic Others Overall
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory Satisfactory
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