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WB funds US$ 126 million climate change response project

VGP – The Vietnamese Government and the World Bank have recently inked a US$126.9 million financing agreement to improve access to infrastructure, connectivity and reduce flood risk in the urban core of Vinh Long City.

Posts Kim Anh

January 07, 2022 2:18 PM GMT+7

The Vinh Long City Urban Development and Enhanced Climate Resilience Project, at a total cost of US$202.2 million, will help remove physical constraints to development in the urban core area through the development of flood control systems, drainage, wastewater collection and treatment, and investment in key urban roads.

Nearly half of the project’s funding will be used to develop flood risk mitigation measures, including embankments and tidal sluice gates, rehabilitation and upgrades of the canal and drainage system, and investments in green infrastructure to retain and infiltrate rainwater. The project will also support the building of three strategic roads that will improve the inter-city connectivity and further enhance the city’s flood protection capacity.

The US$126.9-million credit is provided through the World Bank’s International Development Association (IDA).

The project is being co-financed by a US$19.5-million grant from the Development Related Infrastructure Investment Vehicle (DRIVE), a facility provided by the Dutch Ministry of Foreign Affairs. The balance of the project cost is to be funded by the Government of Viet Nam.

Vinh Long City, strategically located along the economic corridor that connects Ho Chi Minh City to the Mekong Delta, has great potential to become a regional hub for agribusiness, trade, and tourism. However, flooding and poor environmental sanitation are major impediments holding back the city’s development. Located at a low elevation on the Tien River plain, about 60 percent of the city is prone to flooding./.