The World Bank Implementation Status & Results Report Local Road Asset Management Program (P155086) Local Road Asset Management Program (P155086) EAST ASIA AND PACIFIC | Vietnam | Transport Global Practice | Requesting Unit: EACVF | Responsible Unit: IEAT1 IBRD/IDA | Program-for-Results Financing | FY 2016 | Team Leader(s): Phuong Thi Minh Tran, Chi Kien Nguyen Seq No: 10 | ARCHIVED on 30-Jul-2021 | ISR47606 | Created by: Michael G. Nelson on 30-Jun-2021 | Modified by: Phuong Thi Minh Tran on 29- Jul-2021 Program Development Objectives PDO Table Program Development Objective (from Program Appraisal Document) The Objective of the Operation is to improve road and bridge connectivity for the rural communities of the participating provinces in Vietnam. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Highly Satisfactory Implementation Status and Key Decisions The Operation became effective on December 31, 2016. The Ministry of Transport and the Directorate for Roads of Vietnam have been working closely with 51 participating provinces to accelerate the implementation progress. Overall good progress continued to be observed in implementing all components of the operation, and the progress towards achieving the PDO was assessed as satisfactory. The mission concurred with MOT’s confirmation that the operation’s PDO remains highly relevant, and the Disbursement-linked Indicators (DLIs) remain appropriate with achievable targets. For all five DLIs, the achieved results exceeded the targeted values as verified by the Independent Verification Auditor (IVA). All components continue to progress satisfactorily, with the bridge component very likely to achieve the final target one year earlier than planned. All other five consultancies under the technical assistance component have been performing satisfactorily. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P155086 IDA-58100 Effective USD 385.00 385.00 0.00 331.03 59.41 85% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P155086 IDA-58100 Effective 29-Apr-2016 04-Jul-2016 15-Dec-2016 30-Jun-2023 30-Jun-2023 Program Action Plan 7/30/2021 Page 1 of 11 The World Bank Implementation Status & Results Report Local Road Asset Management Program (P155086) 1. Governance: Enhance transparency by maintaining databases on public Action Description consultation/corruption/fiduciary/procurement/Program implementation complaints and responses to those complaints through grievance mechanisms and systems to be established. Source DLI# Responsibility Timing Timing Value Status Other Client Recurrent Continuous Completed The actions on governance is implemented and monitored by MoT/DRVN/PMU/PPMU through an M&E system and Completion Measurement GRM at the commune to central levels. Monthly reports and review meetings are chaired by the chairman of the DRVN. Reports submitted on time. The M&E system of the Operation is sufficiently functional to ensure good governance during the implementation. Comments Implemented and maintained database. Periodic report submitted to WB 2.1Procurement:All proposals for detailed designs/construction supervision and bids for civil works, whether below or Action Description above cost estimates, shall be evaluated; proposals/bids shall not be rejected solely on basis of minor, non- substantive deviation. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous Completed All proposals/bids were duly evaluated and in compliance with regulations. Not any bid that was rejected because the Completion Measurement bid was higher than cost estimates, or due to small deviations. Satisfactory. No bids and proposals were rejected because the bid/proposal price is higher than the estimate or due to minor, non- Comments substantive deviations. Action Description 2.2.a. Procurement: Dependent SOEs of MoT will not be allowed to participate for the contracts under the Program. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous Completed Completion Measurement There are no SOEs under the Ministry of Transport participating in the contracts Comments No SOEs of MoT, PPCs participate in the project 2.2.b. Procurement: Dependent SOEs of PPC under the Program Provinces will not be allowed to participate in the Action Description contracts in the provinces that they are dependent on, but can participate in the contracts in other provinces. Source DLI# Responsibility Timing Timing Value Status Other Client Recurrent Continuous Completed Completion Measurement There are no SOEs under the People's Committees of provinces participating in the operation Comments All winning contractors are small and medium private firms. 7/30/2021 Page 2 of 11 The World Bank Implementation Status & Results Report Local Road Asset Management Program (P155086) 2.3 Procurement: At least 80 percent of the total value of contracts for consulting services and 80 percent of the Action Description number of contracts for works awarded annually will be procured competitively. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Road component: 88% (value) consulting contracts and 99% (quantity) works contracts procured competitively Completion Measurement Bridge component: 87% (value) consulting contracts and 100% (quantity) works contracts procured competitively Comments Action Description 2.4 Procurement: Firms on the local, national, or Bank debarment list will not be allowed to participate. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous Completed Not any bidders on the local, national, or World Bank debarment list participated in the operation’s contracts. Completion Measurement Satisfactory. Comments The IVA verified that so far, no firms on the local, national, or World Bank debarment list was allowed to participate. 3.1 FM:Prov. will prepare 1 overall 5-year financial plan to implement Prog. Each year an accurate budget proposal Action Description shall be produced by Prov. based on estimated work progress/cash flow for coming year to ensure no funding gap to achieve Progr results Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Medium-term investment plan 2016-2020 (MTIP for 5 years) for the project is to meet the progress (reached at 89%). Completion Measurement Annual budget allocation plans were approved for implementation. The remaining funds of 11% will be included in the MTIP 2021-2025. From the start of implementation, IDA and counterpart funds have been sufficiently allocated to enhance smooth Comments implementation. Complied with. 3.2 FM: MoF will ensure that a mechanism for results-based financing is included in the Government annual budget Action Description cycle of related provinces, and that the annual budget allocation is adequate to achieve each year’s objectives Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Annually, the Ministry of Finance advises the Government on the allocated budget sufficient for the implementation to Completion Measurement meet the operation progress and objectives. Comments Allocated enough funds according to the Project progress. 7/30/2021 Page 3 of 11 The World Bank Implementation Status & Results Report Local Road Asset Management Program (P155086) 3.3 FM: Provinces will prepare annual Program financial statements. Implementing Agency will establish an internal Action Description audit function for the Program. An external IVA with generally accepted audit scope and approach will audit the Operation. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Yearly In Progress Every year, provinces prepare their annual Program financial statements which were verified bi-annually by the IVA Completion Measurement for compliance. The DRVN has established an internal financial audit team for internal financial management control too. Comments Complied with Action Description GRM is operational. Source DLI# Responsibility Timing Timing Value Status Other Client Recurrent Continuous In Progress The operation’s GRM stated in the RAP has been disclosed to local people and is available at the commune offices. Completion Measurement All complaints have been well received, registered, monitored and addressed with compliance. DRVN has maintained the online GRM on its website at https://drvn.gov.vn which is accessible to operation affected Comments people and public. 4.1 Environment/Social: Provinces will ensure land acquisition & related adverse impacts are avoided/minimized, Action Description affected people will be compensated so that they are no worse off than before that loss, and if possible better off. Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems Completion Measurement Compliance with requirements has been performed by DRVN/PMU/PPMU and verified by IVA. Comments The operation is currently compliant with the World Bank’s social and environment safeguards policies. 4.2 Environment/Social: An efficient & independently verifiable mechanism, acceptable to the Bank, will be developed Action Description to assess the market value of lost land, other assets and income streams to determine adequate means to restore livelihoods of PAHs. Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems Most of the affected households have great benefits from the operation, and improve their incomes and lives; no Completion Measurement economic reduction is noted. The survey and evaluation was done in May 2020 has documented evident that the improved access and connectivity Comments lead to better life for the population living along the operation areas and help eradicate poverty for the ethnic minority people. 7/30/2021 Page 4 of 11 The World Bank Implementation Status & Results Report Local Road Asset Management Program (P155086) 4.3 Environment/Social:Provinces will implement common guidelines, developed with Bank’s support, consistent with Action Description national legislation, acceptable to the Bank, to work with Ethnic Minorities, to support community engagement/gender, with consultations Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement Compliant with the requirements from the governement and the World Bank. The compliance was monitored by the Independent Social and Safeguards consultant and verified by the IVA semi- Comments annually. Complied with. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Low Low Macroeconomic -- Low Low Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and -- Low Low Sustainability Fiduciary -- Low Low Environment and Social -- Low Low Stakeholders -- Low Low Other -- Low Low Overall -- Low Low Results PDO Indicators by Objectives / Outcomes To improve the road and bridge connectivity for rural communities of participating provinces in VN. IN01019339 ►PDO Indicator 1: Number of beneficiaries with overall improved access (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9,941,204.00 10,526,265.00 2,500,000.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 7/30/2021 Page 5 of 11 The World Bank Implementation Status & Results Report Local Road Asset Management Program (P155086) The actual value is far higher than the original set target because the data on the number of beneficiaries is currently collected as the total population of those locations that benefited from the project-funded roads and bridges rather than recording those beneficiaries that have reduced travel times (as per PAD definition). The implementing agencies have tried to quantify the reduction in travel times or the accessibility to a road. Comments However, it is very difficult and costly, especially for DoTs to collect the type of data. With the assumption that the improved road networks help all peoples in target communes to reduce the travel time so that DRVN decided to keep calculating the number of beneficiaries as the number of people in communes where the road passes through. IN01019340 ►PDO Indicator 2: Communes with new or rebuilt all season bridge connection (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,051.00 1,690.00 800.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 In the previous period report, this indicator’s value was also calculated based on the number of communes that have both bridge and improved road networks, and that lead to the double-counting of the number of communes with more than 1 bridge. Therefore, the actual number of reconnected communes has increased. In fact, up to May 2021, the number of reconnected communes by bridges is 1,736. This result achieved so far is a lot higher than the end target of 800 communes and the reason for this can be Comments explained as follows: at the design stage, it was assumed that 1 bridge would reconnect 1 commune. However, in reality, there are some cases where 1 bridge can connect more than 2 communes. This increase in the number of communes also contributes to the increase of the number of beneficiaries in PDO indicator 1. IN01019341 ►PDO Indicator 3: Local road network maintained at minimum level in accordance with MTEP (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 51.00 91.00 91.00 100.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 There is a mistake in the baseline indicator reported in ISR # 8. The baseline data is now corrected to 51% Comments as per the setting in PAD. IN01019342 ►Provinces using road asset management systems. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 14.00 14.00 14.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 The 14 provinces under the program have implemented their road asset management system. Comments IN01019343 ►Roads rehablitated (Kilometers, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 746.00 743.00 676.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 Comments 646km of roads have already been verified (The correct number of Actual Previous should be 646km instead of 746km). So far, 743km of roads have already been completed and not yet verified. The final value will be based on the actual km of road verified and updated in Sep 2021. 7/30/2021 Page 6 of 11 The World Bank Implementation Status & Results Report Local Road Asset Management Program (P155086) IN01019344 ►Number of kilometers of roads that received routine maintenance at minimum level (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 46,035.00 460,604.00 48,578.00 Date 31-Dec-2015 12-Dec-2020 13-Jul-2021 31-Dec-2022 The No of km of road that received routine maintenance of minimum level is 35,176, which has been verified. Up to date, this number is 40,604 and will be verified in June 2021. The previous value of 46,035 Comments (ISR # 8) was mistakenly entered. IN01019345 ►Increased amount in budget allocation for local road maintenance (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 34,400,000.00 16,086,956.00 16,521,739.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 This indicator reported the increase in the amount of budget allocation for local road maintenance work. The indicator’s value reported in the last ISR of VND793 bil (Dec 2020) (~USD34,400,000) was mistakenly calculated as it was based on the Government FS that set the baseline value of VND294 bil (~USD12,782,608) (Decision on project approval No 622/QĐ-BGTVT and No 1698/QDD-BGTVT by MoT) Comments instead of VND 0 bil as per the Bank’s PAD. Therefore, the actual previous value should be VND499 billion instead (~USD21,695,652). The increase in budget allocation is VND370 billion (~USD16,086,956) for 2021. IN01019346 ►Community-based routine maintenance activities implemented (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,000.00 37,056.00 37,056.00 10,000.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 There is no change in the value of this indicator compared to the previous actual value reported in Dec 2020 because the performance-based contract (PBC) was signed for the 3-year period from 2020 – 2022. The actual achieved result was 3 times higher than the original end target because the community-based routine Comments maintenance model has been replicated wider. There are some provinces have allocated budget for these activities. IN01019347 ►Road safety audits for improved local roads and constructed bridges (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 All constructions are verified and appraised by consultants and well mentioned in economic and technical Comments reports as well as have traffic safety according to the Government regulations. IN01019348 ►Number of bridges built or rebuilt (Number, Custom) 7/30/2021 Page 7 of 11 The World Bank Implementation Status & Results Report Local Road Asset Management Program (P155086) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,857.00 2,226.00 2,174.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 As of today, 1,857 bridges were verified by IVA and disbursed. A total of 2,226 bridges were completed but not yet verified by IVA. The final value will be based on the actual number of bridges that are verified and Comments will be updated in Jun 2021. IN01019349 ►Percentage of participating provinces managing a bridge database (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40.00 80.00 100.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 In the previous report period, there are 20/50 provinces, equivalent to 40%, that have a bridge management database that was verified and approved as meeting the requirement. In fact, there are 20 additional Comments provinces have started to input into the bridge management database to increase up to 40/50 provinces in the next verification in June 2021. The end target will reach 50/50 provinces. Intermediate Results Indicators by Results Areas Result Area 1 – Improvement of local accessibility and associated service delivery (support the NSRTD) IN01019350 ►Number of kilometers of roads that received routine maintenance at minimum level (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 46,035.00 40,604.00 48,578.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 The No of km of road that received routine maintenance of minimum level is 35,176, which has been verified. Up to date, this number is 40,604 and will be verified in June 2021. The previous value of 46,035 Comments (ISR # 8) was mistakenly entered. IN01019352 ►Increased amount in budget allocation for local road maintenance (million USD) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 34,400,000.00 16,086,956.00 16,521,739.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 This indicator reported the increase in the amount of budget allocation for local road maintenance work. The indicator’s value reported in the last ISR of VND793 bil (Dec 2020) (~ USD34,400,000) was mistakenly calculated as it was based on the Government FS that set the baseline value of VND294 bil (~ Comments USD12,782,608) (Decision on project approval No 622/QĐ-BGTVT and No 1698/QDD-BGTVT by MoT) instead of VND 0 bil as per the Bank’s PAD. Therefore, the actual previous value should be VND499 billion instead (~USD21,695,652). The increase in budget allocation is VND370 billion (~USD16,086,956) for 2021 IN01019354 ►Number of beneficiaries with overall improved access (Number, Custom) 7/30/2021 Page 8 of 11 The World Bank Implementation Status & Results Report Local Road Asset Management Program (P155086) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9,941.00 10,526,265.00 2,500,000.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 The actual value is far higher than the original set target because the data on the number of beneficiaries is currently collected as the total population of those locations that benefited from the project-funded roads and bridges rather than recording those beneficiaries that have reduced travel times (as per PAD definition). The implementing agencies have tried to quantify the reduction in travel times or the accessibility to a road. Comments However, it is very difficult and costly, especially for DoTs to collect the type of data. With the assumption that the improved road networks help all peoples in target communes to reduce the travel time so that DRVN decided to keep calculating the number of beneficiaries as the number of people in communes where the road passes through. IN01019356 ►Roads rehabilitated, Rural (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 746.00 743.00 676.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 646km of roads have already been verified (The correct number for the last Actual Period should be 646km instead of 746km). So far, 743km of roads have already been completed and not yet verified. The final value Comments will be based on the actual km of road verified and updated in Sep 2021. IN01019358 ►Provinces using road asset management systems (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 14.00 14.00 14.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 The 14 provinces under the program have implemented their road asset management system. Comments Result Area 2 – Improvement of local bridge connectivity to isolated communes (support the PLBC) IN01019351 ►Number of bridges built or rebuilt (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,857.00 2,226.00 2,174.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 As of today, 1,857 bridges were verified by IVA and disbursed. A total of 2,226 bridges were completed but not yet verified by IVA. The final value will be based on the actual number of bridges that are verified and Comments will be updated in Jun 2021. IN01019353 ►Percentage of participating provinces managing a bridge database (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40.00 80.00 100.00 7/30/2021 Page 9 of 11 The World Bank Implementation Status & Results Report Local Road Asset Management Program (P155086) Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 In the previous report period, there are 20/50 provinces, equivalent to 40%, that have a bridge management database that was verified and approved as meeting the requirement. In fact, there are 20 additional Comments provinces have started to input into the bridge management database to increase up to 40/50 provinces in the next verification in June 2021. The end target will reach 50/50 provinces. IN01019355 ►Community-based routine maintenance activities implemented (Km of roads) (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,000.00 37,056.00 37,056.00 10,000.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 There is no change in the value of this indicator compared to the previous actual value reported in Dec 2020 because the performance-based contract (PBC) was signed for the 3-year period from 2020 – 2022. The actual achieved result was 3 times higher than the original end target because the community-based routine Comments maintenance model has been replicated wider. There are some provinces have allocated budget for these activities. IN01019357 ►Road safety audits for improved local roads and constructed bridges (% of subprojects carrying out safety audits) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 All constructions are verified and appraised by consultants and well mentioned in economic and technical Comments reports as well as have traffic safety according to the Government regulations. IN01019359 ►Citizens in communes involved in planning and/or evaluation of road and bridge works (% of of subprojects carrying out community consultations) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 31-Dec-2022 100 % of road and bridge works have carried out the community consultation as per requirement. Comments Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 1.1 Number of kilometers of roads that received improvements, rehabilitation (Output, 74,000,000.00, 2%) Baseline Actual (Previous) Actual (Current) December 2022 Value 0.00 507.00 676.00 676.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 -- Comments 7/30/2021 Page 10 of 11 The World Bank Implementation Status & Results Report Local Road Asset Management Program (P155086) ►DLI 2 1.2 Number of kilometers of roads that received routine maintenance at minimum level (Output, 40,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) December 2022 Value 0.00 35,175.00 40,604.00 48,578.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 -- Comments ►DLI 3 1.3 Increased amount in budget allocation for local road maintenance (Billion VND) (Intermediate Outcome, 380.00, 0%) Baseline Actual (Previous) Actual (Current) December 2022 Value 0.00 499.00 499.00 380.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 -- Comments ►DLI 4 2.1 Number of bridges built or rebuilt (Output, 235.50, 77%) Baseline Actual (Previous) Actual (Current) December 2022 Value 0.00 1,857.00 2,226.00 2,174.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 -- As of today, 1,857 bridges were verified by IVA and disbursed. A total of 2,226 bridges were completed but not yet verified by IVA. The final value will be based on the actual number of bridges that are verified and will be Comments updated in Jun 2021. ►DLI 5 2.2 Percentage of participating provinces managing a bridge database (Output, 10,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) December 2022 Value 0.00 40.00 80.00 100.00 Date 31-Dec-2015 14-Dec-2020 13-Jul-2021 -- In the previous report period, there are 20/50 provinces, equivalent to 40%, that have a bridge management database that was verified and approved as meeting the requirement. In fact, there are 20 additional provinces Comments have started to input into the bridge management database to increase up to 40/50 provinces in the next verification in June 2021. The end target will reach 50/50 provinces. 7/30/2021 Page 11 of 11