PROJECT INFORMATION DOCUMENT (PID)
CONCEPT STAGE
Project Name
Region
Sector
Project ID
Borrower(s)
Implementing Agency
Environment Category
Date PID Prepared
Estimated Date of
Appraisal Authorization
Estimated Date of Board
Approval
Report No.: AB6512
VN-Mekong Water Management for Rural Development Project
EAST ASIA AND PACIFIC
Sectors: Water Resources (80%), rural development (20%)
P113949
GOVERNMENT OF VIETNAM
Ministry of Agriculture, Rural Development (MARD)
Hanoi
Vietnam
Tel:
[ ] A [X] B [] C [ ] FI [] TBD
April 4, 2011
April 2, 2011
May 24,2011
1. Key development issues and rationale for Bank involvement
The Mekong Delta (the Delta) covers approximately 5.9 million hectares and spans the southern
parts of both Cambodia and Vietnam. The Vietnamese territory of the Delta covers
approximately 3.9 million hectares, comprising 12 provinces and one municipality (Can Tho)
and having a population of 19 million people (i.e. 22% of the national total). The Delta is the
major pillar of Vietnam’s agriculture, accounting for 52% of the country’s rice production, 65%
of its fruit production, and 60% of its fisheries output. The Delta accounts for more than 25% of
the national GDP, 40% of national agro-sector GDP and is the origin of some 90% of its rice
exports and 75% of fishery export value.
With changing agro-climatic conditions, economic incentives and demographic patterns, the
objectives of water resources management in the Delta has become more varied and
sophisticated. Infrastructure must now support a diversified agriculture and enable some degree
of flexibility in water management decision-making. The region’s canal system must now serve
multiple purposes, conveying irrigation and drainage water and serving as an inland waterway to
carry agricultural (and other) goods and provide a source of mobility for people. Other
infrastructure must now mitigate risks posed by climate change as with sluice gates controlling
salinity intrusion and sea and river dykes providing coastal protection and combating river surge
floods.
There is no doubt that the Government has tallied up many achievements in successfully
mitigating natural hazards and in facilitating the realization of the Delta’s agricultural production
potential. However, there are concerns about the sustainability of these gains in the face of
several external factors as well as development trends within the region itself. For example:

Climate change will likely be the most significant factor affecting life and economic
productivity in the Delta in the coming years. Different estimates project that the
surrounding sea level could rise by between 30 and 70 centimeters by 2050. If this occurs
and is not effectively countered, the results would include: (a) the complete submersion of
certain locations, (b) increased flood duration, (c) an increased level of salinity intrusion,
particularly during the dry season; and (d) increased levels of sedimentation and siltation.
All of these changes would adversely impact crop production in the Delta. MONRE has
estimated that a 30 cm sea rise level could result in the ‘loss’ of some 13% of the Mekong’s
paddy rice area due to inundation and/or salinity intrusion1. It is also predicted that climate
change will result in an increase in sea temperatures, subsequently increasing the frequency
and intensity of major storms—accentuating the flood risk faced in inland areas, while
causing potentially severe erosion in coastal areas. While most predictive models emphasize
possible climate change phenomena several decades from now, the manifestations of climate
change will also be felt in the short to medium terms—necessitating adaptive and mitigative
measures now and in the years to come.

Upstream development. The mainstream Mekong originates in China and subsequently
passes through Lao PDR, Thailand , and Cambodia, on its way to Vietnam and the delta.
Upstream investments in irrigation and hydropower, as well as broader upstream patterns of
economic development, have implications for the availability, timing, and quality of water
reaching Vietnam. For example, China has developed six dams in the mainstream Mekong.
Lao PDR plans to develop as many as 40 hydropower stations, while Cambodia intends to
develop several large-scale irrigation schemes in its own section of the Mekong Delta. The
magnitude of the cumulative impacts of these upstream development investments are still
uncertain2, yet it is certain that these will affect the Delta in terms of water flows and salinity
intrusion. While the Chinese dams are not likely to greatly affect the quantity of water
reaching Vietnam, they may significantly reduce the amount of sedimentation, resulting in
increased erosion of the river mouth. The Cambodian irrigation schemes could reduce the dry
season flow in the Delta, accentuating the process of salinity intrusion into Vietnamese
agricultural areas.

Urbanization and industrialization. Growing urbanization and industrialization in the central
and eastern parts of the Delta may threaten the quality of water available for agriculture and
for drinking purposes there and elsewhere in the Delta. This has already emerged as an issue
in some areas—for instance with the growth of My Tho in Tien Giang Province, raising
concerns about the quality of water available to support export-oriented horticultural
production. There is an urgent need to integrate the waste water elements as traditional water
management through structural measures has limitation.
1
There is much uncertainty and variation in projections about climate change impacts on Vietnam. All the
interventions proposed in this project can be regarded as 'no regrets' interventions---namely, strategies that will yield
benefits regardless of the specific future climate scenarios. They will build a general resilience that does not overly
depend upon detailed climate projections.
2
Chinese and Lao dams may increase dry season flows, but significantly reduce the sediment and somewhat reduce
the wet season flows; Cambodian irrigation schemes would reduce the flood risks, but also reduce the dry season
river flows.

Emerging conflict (or complimentarily) in water use between rice cultivation and
aquaculture. At the national and provincial levels, official targets continue to be set on the
area of land to be put under paddy and on overall rice production. Yet, there is occurring a
significant degree of planned and unplanned conversion of land (and water use) to shrimp
aquaculture or rice/fish poly-culture. This shift has been stimulated by the attractive
economics of shrimp/fish production, both for domestic and export markets. The availability
of fresh water and patterns of salinity intrusion are influencing the viability and economic
attractiveness of different farm enterprises. Strategic decisions regarding water resource
investments, the management of irrigation and drainage systems, and inter-provincial flows
and diversions of fresh water will need to take into account selected trade-offs, with both
short and longer term planning horizons.
2. Proposed objectives
The proposed project development objective (PDO) is to protect and enhance the utilization of
water resources in the Mekong Delta. In doing so, it will help to sustain prior gains in
agricultural productivity, provide access to water supply for rural households, and
contribute to climate change adaptation.
3. Preliminary description
The project would have the following four components:
Component 1: Water Management Planning and Efficient Utilization (Base Cost: US$ 11.8
million). The main objectives of this component are to strengthen the water resources
management planning capacity at the regional and provincial levels and increase efficiency in the
utilization of water. The component would include the following activities;
A.
Water Management Monitoring and Investment Planning in the Western Mekong Delta,
aiming at adjustment of the existing provincial water management plans prepared based on the
Mekong Delta Master Plan and incorporating potential impacts from upstream development and
climate change. The output of this subcomponent would include: (a) revision of the existing
provincial water management and investment plans (b) development of a regional water analysis
framework based on information from the concerned provinces.
B.
Water Productivity, Operations and Maintenance: promoting the efficient use of the water
through demonstration of good practices of on-farm water and agriculture management to
increase water productivity, and increased efficiency in the O&M of the irrigation schemes
supported by Component 2. This subcomponent would comprise the following activities: (a)
Pilot On-farm Management for Improved Water Productivity in (i) An Giang (extensive rice
cultivation), (ii) Can Tho Municipality (rice cultivation and fruit trees), (iii) Hau Giang (rice
cultivation and fresh-water aquaculture), and (iv) Bac Lieu/Ca Mau (combined rice cultivation
and saline or brackish-water aquaculture), and (b) Support for Operations and Maintenance
aiming at support for (i) the seven (7) IDMCs in the project provinces (designing for
Surveillance, Control and Data Analysis (SCADA) system, preparation of business plans and
logistical support), and (ii) WUOs (establishment of 75 WUOs, initial training and on-farm
support) mainly within the irrigation schemes under Component 2 subprojects would be carried
out with priority focus on the first three cycle 1 subprojects as pilot.
Component 2: Improvement and Rehabilitation of Water Resources Infrastructure (Base Cost:
US$ 117.0 million). This component would support the improvement and rehabilitation of water
resources in selected water management schemes. The works would include: (a) major
maintenance of existing under-performing infrastructure (e.g., canal dredging, re-sectioning and
lining repairs, and rehabilitation of dykes), (b) completion and/or minor upgrading of existing
infrastructure (construction of secondary and tertiary sluices gates, construction of small bridges,
upgrading dykes), (c) rehabilitation of the tertiary and quaternary irrigation facilities in
conjunction with the activities to establish WUOs under Component 1, and (d) installation of the
SCADA system in conjunction with the support provided to IDMCs under Component 1. This
component will be implemented through a three cycle subproject approach. During project
preparation, the five first cycle sub-projects (with investments totaling approximately US$ 63.0
million) have been identified as first year subprojects and fully prepared with detailed designs
and safeguards. Other subprojects have been identified yet more detailed design work would be
completed during the period of project implementation itself.
This component would include facilities to support civil works such as: (i) feasibility studies and
safeguard documents; (ii) detailed design; (iii) environmental and safeguard monitoring; and (iv)
support for implementing integrated pest management. Second and third cycle subprojects would
be implemented starting March 2012 and May 2014, respectively. Prior to commencement of the
second and third cycle subprojects, feasibility studies and safeguard documents would be sent to
the Bank for review and approval.
Component 3: Rural Water Supply and Sanitation (Base Cost: US$33.0 million). Activities will
include upgrading and construction of small piped rural water supply systems in the seven
project provinces/municipalities benefitting about 60,000 households. This Component would
include the following subcomponents: (a) support for rural water supply infrastructure, (b)
institutional strengthening program for the PCERWAs, and (c) provision of sanitation facilitiesto
households and public schools. Similar to Component 2, this component would also be
implemented through a three cycle subproject approach, and two subprojects have been fully
designed for the first cycle. Timing of the second and third cycles would be the same as for
Component 2 and prior to commencement of second and third cycle subprojects, feasibility
studies and safeguard documents would be sent to the Bank for review and approval.
Component 4: Project Management and Implementation Support (Base Cost: US$6.0 million).
This component would support the incremental operating costs and logistical support for the
Central Project Management Unit (CPMU), Project Management Unit #10 (PMU10), Provincial
Project Management Units (PPMUs), and Provincial Center for Rural Water Supply and
Sanitation (PCERWASs). The Government will finance: (a) project staff and associated per
diems, (b) office space, (c) fuel and (d) utilities, whereas the Bank’s funds would be used to
finance: (a) office furniture, (b) logistical support (vehicles), (c) office supplies and (d)
communications and logistic maintenance.
4. Applicable safeguard policies
The following Bank safeguard policies will apply: Environmental Assessment (OP/BP 4.01),
Involuntary Resettlement (OP/BP 4.12), (OP/BP 4.11), Indigenous People (OP/BP 4.10), Pest
Management (OP/BP 4.09), and International Waterways (OP/BP/7.50).
In order to address these above-mentioned safeguard policies, the following documents have
been prepared. These documents are disclosed both locally at project level and at Vietnam
Development Information Center in the country, and through Infoshop.

To minimize potential negative impacts on ethnic minority groups, an Ethnic Minorities
Policy Framework (EMPF) has been developed in consultation with affected and nonaffected communities, relevant government agencies and the World Bank. This is to ensure
that the affected ethnic minorities (equivalent to the indigenous peoples as defined in OP
4.10) would be sufficiently consulted so that their free, prior and informed consent to the
project was ascertained. The EMSF also aims to ensure that they have equal opportunities to
share project benefits and that any potential negative impacts, if any, are properly mitigated.
The EMPF forms a basis for project implementation and for monitoring and evaluation. For
the first Cycle subprojects identified during the appraisal, subproject specific Ethnic Minority
Development Plan (EMDP) has been prepared.

To avoid or minimize potential negative impacts due to land acquisition, compensation, land
donation, and physical relocation in compliance with OP 4.12, a Resettlement Policy
Framework (RPF) has been developed in conformity to Bank's OP 4.12 and in close
consultation with affected communities and relevant government agencies. This is to ensure
that the Project affected Peoples (PAP) are adequately compensated and/or assisted so that no
one will be worse off after the Project. This RPF describes the objectives and
policy/regulatory frameworks as well as the principles and process to be applied during the
implementation of the Project. The RPF will be applied to guide preparation of all the
subprojects and investments to be implemented under the Project. A Resettlement Action
Plan (RAPs) has been prepared for each of the subprojects to be implemented for the first
cycle project.

To facilitate the implementation using the subproject cycle approach, an Environmental and
Social Management Framework (ESMF), including Engineering Codes of operation (ECOP)
for civil works, and a guideline for water quality monitoring, has been prepared and it will be
applied to all the subprojects. Environment Management Plans (EMP) has been prepared for
each of the first cycle subprojects under Component 2.

Notification to the riparian countries, including China, Myanmar, Lao PDR, Cambodia, and
Thailand was carried out by the Bank on behalf of the Government on February 17, 2011.
5. Tentative financing
($m.)
Source:
BORROWER/RECIPIENT
International Development Association (IDA)
Total
6. Contact point
Contact: Toru Konishi
Title: Sr. Economist
Tel: 856 21 450010
Email: tkonishi@worldbank.org
Location: Vientiane, Lao PDR(IBRD)
46.60
160.00
206.60