RISK FACTORS IN WATER ENVIRONMENT
IMPROVEMENT PROJECT: A CASE STUDY OF BIEN
HOA CITY
IN DONG NAI PROVINCE
By
Le Van
Tuan
Abstract
Vietnam has just been
developing in recent years. The speed of economic development is growing
rapidly but substandard managerial capacity has not satisfy the actual
requirements, so great urban areas of Vietnam are now facing with complicated
issues of urbanization process and urban development such as migration,
accommodation, labor, career, traffic jam, flood, environment pollution.
The
developments in field water environment improvement are still slow and delay
because there a lot of problems happened in development the project. therefore
make project stage cannot be completed as expected, by analyzing to find out
the root causes of these problems from the data, which are investigated from a
real project, base on key relevant theories, the Author would like to develop
the solutions for future improvements.
Executive summary
Rationale of research
This research has been conducted to identify risk factors in water
environment improvement projects.
Objectives of study
To study and analyze
activities in water projects to find the risk factors and propose solution.
Methodology
The
exploratory research method is used to review literature and study the “Dong Nai water
environment improvement project (sewerage and drainage sector)”.
Findings and conclusion
This
report describes risk factors in each phase development of Dong Nai water
environment improvement project, and has revealed high-risk factors
can seriously affect the success of the project. Actually, Rationale of research
This research has been conducted to identify risk factors in water
environment improvement projects.
Objectives of study
To study and analyze
activities in water projects to find the risk factors and propose solution.
Methodology
The
exploratory research method is used to review literature and study the “Dong Nai water
environment improvement project (sewerage and drainage sector)”.
Findings and conclusion
This report describes risk factors
on each phase development of Dong Nai water environment improvement project,
and obviously has revealed high-risk factors can seriously affect the success
of the project. Actually, Vietnam present has enormous efforts to overcome
policy and reduce risk in development project. However, investors still face a lot of
problems (risks) when development project.
The report may not offer the
complete of risk factors in various stages of project implementation, but also
clear description of the risk factors may affect the efficiency projects that
most water environment improvement projects in Vietnam are all experiencing the
problem of land acquisition and resettlement, legal, project costs incurred up
compared to initial estimates of financial, construction progress and fund for
operation and maintenance.
Recommendation
Study
suggests measures to improve the management process of the development stages’
project. Note that the proposal cannot be applied to other project which not
use ODA loan and in field wastewater treatment.
1.
Land
acquisition and resettlement:
·
Acquisition of land and other assets, and
resettlement of people will be minimized as much as possible.
·
All Project Affected Persons (PAP) residing,
working, doing business or cultivating land within the recovered area for the
Project as of the cut-off-date, are entitled to be provided with rehabilitation
measures sufficient to assist them to at least maintain or improve their
pre-Project living standards.
-
compensation at replacement cost, without
deduction for depreciation or salvaged materials from houses and other
structures;
-
priority given for agricultural land-for-land of
equal productive capacity acceptable to the PAPs;
-
replacement of residential land of equal size
and acceptable to the PAPs;
-
transportation and subsistence allowances; and
-
Business/income rehabilitation allowances (even
for non registered businesses).
-
Replacement of residential and agricultural land
should be as near as possible to the land/compensation that is lost.
-
Particular attention should be paid to the needs
of vulnerable groups among those displaced, especially those below the poverty
line.
-
Appropriate reporting, monitoring and evaluation
mechanisms should be identified and set in place as part of the resettlement
management system.
2.
Legal: The government
should be modified, reduced many regulations in Laws to
do the project more
quickly, so investors have more responsibility and
can actively to make decision in the implementation of the project.
3.
Financing:
·
Structure of project financing: The government
in Vietnam should require to Plan and use ODA to specify findings of an
analysis of the institutional framework covering:
- the identification of agencies
responsible for use ODA loan activities and authorities of all levels that have
a role in project implementation;
- an assessment of the
institutional capacity of such agencies;
- Do implementation
of transparency in the use
of loans.
·
Project cost estimate:
- Cost estimation should carefully be
conducted in terms of recent Vietnam economic condition basic cost of is
increased in Vietnam.
- To assure the quality in the cost
estimate phase of projects, the investor should have a good training program
for their engineering staff, which develop cost estimate. Training on the job
is a good method to help employees to be more professional.
4.
Construction: using WBS to divide
and control schedule. The contractor should focus to difficulty objectives to
reduce risk or delay on project.
5.
Operation
and Maintenance: Dong
Nai province People's Committee and centre Government should build a legal framework. It will create the financial
foundation for wastewater treatment company like:
- Development of
sewage tariff schedule, raising program and method for applied gradually offset
the cost price are also necessary to operate system with sustainability from
the point of view of finance.
-
Create navigation tools
to help investment.
Vietnam
present has enormous efforts to overcome policy and reduce risk in development
project. However, investors still face a lot of problems (risks) when development project.
The
report may not offer the complete of risk factors in various stages of project
implementation, but also clear description of the risk factors may affect the
efficiency projects that most water environment improvement projects in Vietnam
are all experiencing the problem of land acquisition and resettlement, legal,
project costs incurred up compared to initial estimates of financial,
construction progress and fund for operation and maintenance.
Recommendation
Study
suggests measures to improve the management process of the development stages’
project. Note that the proposal cannot be applied to other project which not
use ODA loan and in field wastewater treatment.
1.
Land
acquisition and resettlement:
·
Acquisition of
land and other assets, and resettlement of people will be minimized as much as
possible.
·
All Project
Affected Persons (PAP) residing, working, doing business or cultivating land
within the recovered area for the Project as of the cut-off-date, are entitled
to be provided with rehabilitation measures sufficient to assist them to at
least maintain or improve their pre-Project living standards.
-
compensation at
replacement cost, without deduction for depreciation or salvaged materials from
houses and other structures;
-
priority given
for agricultural land-for-land of equal productive capacity acceptable to the
PAPs;
-
replacement of
residential land of equal size and acceptable to the PAPs;
-
transportation
and subsistence allowances; and
-
Business/income
rehabilitation allowances (even for non registered businesses).
-
Replacement of
residential and agricultural land should be as near as possible to the land/compensation
that is lost.
-
Particular
attention should be paid to the needs of vulnerable groups among those
displaced, especially those below the poverty line.
-
Appropriate
reporting, monitoring and evaluation mechanisms should be identified and set in
place as part of the resettlement management system.
2.
Legal: The government
should be modified, reduced many regulations in Laws to
do the project more
quickly, so investors have more responsibility and
can actively to make decision in the implementation of the project.
3.
Financing:
·
Structure of
project financing: The government in Vietnam should require to Plan and use ODA
to specify findings of an analysis of the institutional framework covering:
- the identification of agencies
responsible for use ODA loan activities and authorities of all levels that have
a role in project implementation;
- an assessment of the
institutional capacity of such agencies;
- Do implementation
of transparency in the use
of loans.
·
Project cost
estimate:
- Cost estimation should carefully be
conducted in terms of recent Vietnam economic condition basic cost of is
increased in Vietnam.
- To assure the quality in the cost
estimate phase of projects, the investor should have a good training program
for their engineering staff, which develop cost estimate. Training on the job
is a good method to help employees to be more professional.
4.
Construction: using WBS to divide
and control schedule. The contractor should focus to difficulty objectives to
reduce risk or delay on project.
5.
Operation
and Maintenance: Dong
Nai province People's Committee and centre Government should build a legal framework. It will create the financial
foundation for wastewater treatment company like:
- Development of
sewage tariff schedule, raising program and method for applied gradually offset
the cost price are also necessary to operate system with sustainability from
the point of view of finance.
-
Create navigation tools
to help investment.
