During the second quarter of the 1998 consultancy, the Rubber Processing Adviser continued his activities with the supervision of the construction of the three remaining factories : the Soc Xim/Binh Long factory, the Suoi Rat/Phu Rieng factory and the rehabilitation of the old Dong Phu factory. The Soc Xim factory is expected to be completed in November 1998, but the construction of the Suoi Rat and Dong Phu factory will not be completed before the present closing date of the World Bank/IDA loan on December 1998. An extension until June 1999 to complete all remaining constructions will be needed. The equipment for the Dong Phu factory supplied by Kwan Cheong were received in August. The equipment for the Soc Xim and Suoi Rat factory will be delivered in October 1998. The installation of the equipment will be delayed for the Suoi Rat (Sphere Corporation) and Dong Phu factory (Kwan Cheong) as both construction have been delayed. Golsta is expected to commission the Soc Xim factory in November 1998. The evaluation of the bids for the effluent control has been completed. GRC/PCU has selected the easy system to operate or anaerobic-aerated system, instead of a sludge system more sophisticated, more efficient, but also more expensive. PCU has provided the information to justify the choice of the winning bidders. The construction of four rubber effluent treatments will start in December 1998. An extension of the project will be needed to complete the implementation of rubber effluent control. GRC/PCU will start the procedure with the Vietnamese Government to demand to the World Bank an extension of the project until June 1999.