Vietnam’s First Metro, in Hanoi, Hobbled by Lack of Riders

It took 10 years for the Cat Linh-Ha Dong metro line in Hanoi, Vietnam’s first, to enter service November 21.

Despite initial positive reviews, though, the value of the controversial project is being questioned.

The 13-kilometer elevated, 12-station line starts at Cat Linh railway station in north-central Hanoi and ends at Yen Nghia bus station and Phu Long depot in the southwestern suburbs of Ha Dong. Traveling at up to 80 kilometers per hour, the trip takes about 24 minutes, and the line will ultimately be able to carry 1 million passengers a day.

The line is expected to ease traffic congestion and reduce private vehicle use in Hanoi.

Citizens in Vietnam’s capital give positive reviews of the quality of the service and pin high hopes on the metro line.

A Hanoi office worker who asked that her name not be used said that although she cannot use the new line to get to work, she hopes it will help reduce traffic jams, shortening commute times and reducing stress and travel pressures.

“Moreover, since I care about the environment, people’s use of public transport will make a significant contribution to reducing dust and noise pollution,” she told VOA.

However, in contrast to the crowded scenes during the two-week free trial of the service, Vietnamese media last month reported on the lack of passengers.

According to reports from the first days of ticket sales, the number of passengers was low, at approximately 12,000 per day, equivalent to 60 people per trip, accounting for only 8% of the capacity.

This should worry the Hanoi city government, which oversees the project, especially as the metro line has been controversial, having experienced many years of delays and cost overruns.

In 2008, the project had a total initial investment of $552.8 million. By 2017, the figure increased to about $868 million, using exchange rates then in effect.

“After more than 10 years of construction, exceeding four times the expected time, and a cost overrun of 9 trillion dong, leaders of the transport industry have so many times promised to put it into operation, but then the promises are broken, causing people to be angry and skeptical. The people and public opinion have reasons for being angry and skeptical, since there were broken promises and cost overruns,” said Nguyen Van Thanh, a retiree in Ha Dong.

Dieu Anh, who works in public relations at a Hanoi real estate company, also told VOA that the people of Hanoi used to have high expectations for the Cat Linh-Ha Dong route, but after so many missed deadlines, the people were disillusioned.

“It was not until the metro line operated that I dared to believe that it had finally happened,” she said.

The delays and cost overruns are attributed to Vietnam’s inexperience in such projects, given that this is just the second urban railway in Vietnam after the Nhon-Hanoi line, which is still under construction.

South China Sea disputes between Vietnam and China, a major funder of the project, also contributed to the difficulties, since the deployment of a Chinese oil rig on Vietnam’s continental shelf in 2014 was said to have delayed the project’s implementation.

As a result, when the metro line entered service, Vietnamese social media critics referred to the “Chinese factor” and called for “boycotting China’s project.”

“Our forefathers taught us that once you lose faith, you lose faith 10,000 times,” Thanh told VOA. “I don’t believe in doing business with China and I’m not satisfied with their sluggish attitude,” he said.

“If I could choose again, I would not choose Chinese contractors. Instead, I would choose Japan and Cuba for public transport projects because there has been evidence that these countries have done good quality work in all aspects.”

Not everyone agrees with the boycott calls. The office worker said boycott calls are emotional, one-sided, and unnecessary.

“What people should do use this route because of its value in life. … Funding or delays are not related to the use of this route,” she told VOA.

However, she said she still believed that Japanese contractors would be a better choice for future projects.

“China has valuable experience in the construction of public transport facilities, especially electric trains. However, if selected, I hope that the next works will be constructed by Japanese contractors. Japan is a country with a lot of experience in building public transport systems and also very interested in environment protection,” she added.

 

Source: Voice of America

$250 Million ADB Loan to Help Boost COVID-19 Vaccine Supply in the Philippines

MANILA, PHILIPPINES— The Asian Development Bank (ADB) has approved a $250 million loan to help the Philippine government secure additional coronavirus disease (COVID-19) vaccine supply to boost the health security of Filipinos and ensure a safe and steady economic recovery.

The assistance will allow the government to purchase 40 million additional doses of COVID-19 vaccines for eligible children and booster shots for adults.

“The Philippines has continuously enhanced its capacities for testing, tracing, isolating, and treating COVID-19 cases and vigorously pursued COVID-19 inoculation for its population,” said ADB Principal Social Sector Specialist for Southeast Asia Sakiko Tanaka. “ADB is supporting the government’s drive to provide vaccines to protect its citizens and save lives, especially with the emergence of new COVID-19 variants. Vaccination will allow the health system to better manage the effects of the virus and will help sustain economic recovery. It is key to the country’s full recovery from the pandemic.”

The project, the Second Health System Enhancement to Address and Limit COVID-19 under the Asia Pacific Vaccine Access Facility (HEAL2) Additional Financing, will be cofinanced by the Asian Infrastructure Investment Bank.

The new assistance builds on ADB’s active support for the country’s overall COVID-19 health response and its universal health care program. Under the amended Health System Enhancement to Address and Limit COVID-19 under the Asia Pacific Vaccine Access Facility, or HEAL, approved in January 2021, ADB provided advance payments for vaccines and purchases of microsyringes and other vaccine-related items. It also financed investments in health infrastructure to complement vaccine financing, such as the upgrading of laboratories and construction of isolation facilities.

Through HEAL2, approved in March 2021, ADB helped purchase 85.6 million doses of COVID-19 vaccines through bilateral agreements, with 81% of the supply delivered as of 2 December 2021. This made up about half of the country’s vaccine supply as of 2 December 2021. More than 98% of the funds from HEAL2 have been committed for vaccine supply contracts as of 6 December 2021.

These supply contracts have helped the government expand its national COVID-19 vaccination program. As of 8 December 2021, more than 57 million Filipinos, or nearly 65% of the Philippines’ target population, had been vaccinated with at least one COVID-19 vaccine dose.

On 19 November 2021, ADB approved the $600 million Build Universal Health Care Program to ensure equitable access to quality health services and financial protection for all Filipinos.

In addition to vaccine financing, ADB will continue to provide technical support to the government on health information systems, logistics, procurement, gender, and environmental issues related to medical waste.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

 

 

 

Source: Asian Development Bank

Independent Evaluation Report Calls ADB to Extend Greater Mekong Subregion Support Beyond Physical Infrastructure

MANILA, PHILIPPINES — The Asian Development Bank’s (ADB) support for the Greater Mekong Subregion (GMS) Program has been effective in promoting subregional economic cooperation through physical connectivity, but it should now put a greater focus on non-infrastructure elements, a report released today by ADB’s Independent Evaluation Department (IED) says.

The report assesses the extent to which ADB’s support for the GMS Program during 2012–2020 contributed to the development of the subregion.

It finds that ADB’s institutional support was critical for the program. Over the review period, GMS countries together mobilized nearly $56 billion to finance more than 130 projects and achieved tangible results in improving infrastructure in the subregion’s economic corridors. ADB committed $5.3 billion in loans and grants to support the program and mobilized $2.7 billion of cofinancing.

ADB operations performed well at the country level but achieved varied results across sectors supported at the subregional level. ADB made strong contributions to improving the road network, tourism, and community health, but less to other objectives such as market integration, production processes and value chains, and improving environmental conditions.

“The GMS Program shows that regional economic cooperation can generate benefits beyond those that would accrue if left only to actions of individual countries,” said IED Director General Emmanuel Jimenez.

In addition to road infrastructure, the report finds ADB can enhance the program’s benefits by focusing on the complementary of softer elements of physical connectivity to facilitate trade and the movement of people across country boundaries. Given emerging risks to the subregion’s growth, Jimenez added: “Ramping up ADB support for regional public goods that require deeper cooperation among the GMS countries, especially in relation to public health and climate change, can have huge payoffs.”

According to the report, the link between country priorities and desired regional objectives could also be strengthened.

“The selection of pipeline projects without a genuine adherence to regional needs can result in projects that focus on national interests rather than transboundary benefits,” said ADB Principal Evaluation Specialist and the report’s principal author Binh Nguyen. “ADB needs to strengthen the regional development results with a clear link between country-level results and regional outcomes, together with greater efforts on results monitoring and reporting.”

ADB’s support for the GMS Program spans nearly 3 decades with the bank playing a key facilitation role. Strengthening the balance between national and regional needs; coordination across GMS working groups; cross-thematic links; and engagement of stakeholders, including the private sector in GMS deliberations, are areas where further improvements could be made going forward.

The report recommends that ADB prepare the new regional investment framework based on clear and consistent selection criteria; ensure sector strategies are aligned with GMS Economic Cooperation Program Strategic Framework 2030; strengthen the monitoring and reporting of the development results of the GMS Program; and broaden the participation of regional and global organizations and the private sector to maximize their involvement. It also recommends ADB to provide support for knowledge and institutional capacity building to enhance the effectiveness of the GMS institutions, and to improve the regional impact of ADB-financed projects with greater regional focus in project design and implementation, results monitoring, and use of more diversified financing instruments.

About Independent Evaluation at ADB

ADB’s Independent Evaluation, reporting to the Board of Directors through the Development Effectiveness Committee, contributes to development effectiveness by providing feedback on ADB’s policies, strategies, operations, and special concerns in Asia and the Pacific.

 

 

 

Source: Asian Development Bank

$600 Million ADB Loan to Boost Sustainable and Reliable Electricity Services in Western and Central Java

MANILA, PHILIPPINES (13 December 2021) — The Asian Development Bank (ADB) has approved a $600 million results-based loan to help state-owned power company Perusahaan Listrik Negara (PLN) improve the reliability and resiliency of electricity services in the western and central regions of Java island and promote the use of clean energy.

 

The Sustainable and Reliable Energy Access Program will rehabilitate, strengthen, and expand PLN’s power grid and promote clean energy use. It will improve PLN’s waste and asset management, procurement, and community education. The program will benefit five provinces in the area, home to about 112 million people: Banten, Central Java, Jakarta Special Capital Region, West Java, and Yogyakarta Special Region.

 

“The program will enhance access to sustainable and reliable energy in western and central Java island, home to 41% of Indonesia’s population, including about 30 million people who are poor or living near the poverty line,” said ADB Senior Finance Specialist Daniel Miller. “The area also hosts 11.3 million, or 56%, of the country’s micro and small enterprises (MSEs). By providing reliable and sustainable electricity, the program will improve the quality of life, support the delivery of essential public services, and create jobs. It will accelerate Java’s economic recovery and help transform its poorer areas into growth engines through agro-industries, tourism, and MSEs.”

 

Java, which dominates Indonesia’s economic output, has achieved universal electricity access, but economic growth has been constrained by poor power quality, frequent interruptions, and electricity losses. To achieve sustained and higher economic growth, Java will require 259 terawatt-hours of electricity by 2030, or 66.4% of the country’s projected demand. Meeting that demand requires strengthening Java’s power grid and transitioning to a low-carbon economy, with the ability to integrate more renewables in the power grid.

 

The loan, with a sovereign guarantee from the Government of Indonesia, will improve PLN’s transmission lines, power grid automation, and hazardous waste storage facilities. It will bolster PLN’s digitalization of business processes, such as e-procurement and support the installation of more charging stations for electric vehicles.

 

The program will benefit women and girls, who carry the burden of household responsibilities, by expanding their participation in energy-reliant, income-generating activities such as the local production of goods, agricultural processing, and tourism.

 

In addition, ADB will administer a $500,000 grant from the Republic of Korea e-Asia and Knowledge Partnership Fund for the program. The technical assistance will fund PLN’s staff training in emerging technologies, including power grid system planning and automation, grid operation with increasing amounts of renewable generation capacity, electric vehicle charging services, and utility-scale energy storage systems.

 

ADB’s country partnership for Indonesia, 2020–2024, focuses on boosting Indonesia’s economic recovery through sustainable and resilient energy infrastructure. Under results-based lending, disbursements of funds are linked to the achievement of program results to enhance the accountability and effectiveness of government reforms by creating incentives for delivering and sustaining results.

 

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

 

 

Source: Asian Development Bank

$200 Million ADB Loan to Develop Irrigation System in Pakistan

MANILA, PHILIPPINES— The Asian Development Bank (ADB) today approved a $200 million loan for the development of an irrigation system in Punjab province in Pakistan that will help increase agricultural productivity and enhance food security.

 

The project loan, which is denominated in Japanese yen, will finance the construction of the second branch or Choubara system of the Greater Thal Canal irrigation scheme. The scheme will provide reliable irrigation water supply to 704,000 hectares of land in Bhakkar, Jhang, Khushab, Layyah, and Muzaffargarh districts, making them more agriculturally productive. The Government of Pakistan had earlier constructed the Main Canal and the first branch or Mankera system.

 

“Given Pakistan’s vulnerability to the impacts of climate change, it is essential to build irrigation infrastructure for climate-resilient and sustainable agriculture,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “ADB’s support will help boost the supply of local produce and promote food security, while increasing economic growth.”

 

Punjab is the main source of food production for Pakistan’s growing population, producing a significant portion of the country’s wheat, rice, sugarcane, and maize. Because of Pakistan’s semi-arid climate, agricultural production is highly dependent on irrigation. Yet, irrigation efficiency remains low due to water shortages, land degradation, and mismanagement of water resources.

 

The Choubara branch system ADB will help construct comprises a 72-kilometer branch canal, 11 secondary canals totaling 251 kilometers, and 11 tertiary canals totaling 127 kilometers. ADB will also help develop on-farm agricultural command areas, pilot water conservation technologies such as land leveling and high efficiency irrigation systems and help to train farmers in water management and climate-resilient agricultural practices.

 

The Main Canal and Mankera branch areas have around 49,000 farmer households and about 38,000 in the Choubara branch areas. Most of these households own less than five hectares of land.

 

“By integrating infrastructure and agricultural interventions, this project directly supports smallholder farmers to manage their limited resources more efficiently and maximize the benefits from irrigated agriculture,” said ADB Principal Portfolio Management Specialist Natsuko Totsuka. “The project will strengthen the capacity of local authorities to maintain these irrigation systems, boost rural economic growth and help to reduce poverty in the province.”

 

Pakistan is a founding member of ADB. Since 1966, ADB has committed more than $36.31 billion to promote inclusive economic growth and improve the country’s infrastructure, energy and food security, transport networks, and urban and social services.

 

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

 

 

Source: Asian Development Bank

Arrival of Submarine Cable a Milestone for High-Speed Broadband in Kiribati

KIRITIMATI, KIRIBATI— The Asian Development Bank (ADB) joined the BwebwerikiNET Ltd (BNL) and the Government of Kiribati today to celebrate the landing of a fiber optic cable which brings high-speed broadband one step closer for the Pacific nation.

 

The event was witnessed by Kiribati President Taneti Mamau while Minister for Information, Communication, Transport, and Tourism Development Tekeeua Tarati delivered the keynote address. Prerecorded speeches were delivered by ADB Director General for the Pacific Leah Gutierrez and Southern Cross Cables Limited Chief Executive Officer Laurie Miller.

 

The Improving Internet Connectivity for Micronesia Project supported by ADB helped install a submarine cable connection between Kiritimati Island to a transpacific cable system connecting Australia, New Zealand, and Hawaii to gain access to faster, more affordable internet.

 

“Kiribati recognizes the significant impact access to high-speed and high-quality internet has on the development of a nation,” said Mr. Tarati. “This enormous potential for socioeconomic development cannot be underestimated, especially when it is harnessed in both private and public sectors. Information and communication technology (ICT) is needed to grow the health, education, agriculture, tourism, governance, and finance sectors, as well as improve disaster management and address climate change.”

 

ADB provided a $21.6 million grant to Kiribati to help finance the Kiritimati cable component of the project. The high-speed internet services are expected to be officially launched by the government in July 2022.

 

“Supporting inclusive growth and investment in ICT are key focus areas of ADB’s Pacific Approach which guides ADB’s operational focus in the region,” said Ms. Gutierrez. “The project will deliver affordable, accessible ICT services, which will reduce costs for businesses, governments, and households.”

 

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

 

 

Source: Asian Development Bank