The State Bank of Vietnam, People’s Committee in Ho Chi Minh City and the World Bank yesterday signed agreements for a total of US$450 million in loans and credits to Vietnam to further improve the city’s environment and sanitation for the second stage.
|At the signing ceremony (Photo: SGGP)|
The funding, which goes to the Second Ho Chi Minh City Environmental Sanitation Project, will improve the environment by treating wastewater, strengthen institutional capacity to manage sanitation and wastewater services, and increase public awareness on the benefits of improved sanitation practices.
The total project cost is VND11,133 billion (US$527 million) of which US$450 million loaned of WB including US$250 million financed through a loan from the International Bank for Reconstruction and Development (IBRD) and a US$200 million credit through the International Development Association (IDA). HCMC will provide VND1.6 trillion (US$73.9 million) from its own resources for the project.
The project includes building a sewer system with a 3.2-meter diameter and 8 kilometer length from the east well to waste treatment facility in Thanh My Loi Ward in District 2 and a waste treatment facility with the capacity of 480,000 cubic meters. In addition, through the project, sewer networks and house connections to the network will be installed in parts of District 2.
The project will also provide technical assistance to improve sanitation and wastewater management practices in the city. The project includes a waste water treatment plant that will treat wastewater collected in the Nhieu Loc-Thi Nghe basin and from parts of District 2 of the city. The plant will treat untreated wastewater that is currently being discharged to the Saigon River.
"The project is part of the World Bank strategic partnership with Ho Chi Minh City which supports economic growth, urban development including flood risk management and improving urban services. The improvements to environmental sanitation to be funded under the project will increase the quality of life for about 1.3 million residents," said Victoria Kwakwa, World Bank Country Director to Viet Nam.
Speaking at the signing ceremony, on behalf of the city authority, People’s Committee chairman Le Hoang Quan thanked WB in Vietnam to help the city carrying out the project promising to do well resettlement for all residents in Thanh My Loi Ward in district 2 who are affected by the project.
During the implementation of the project, HCMC and WB experts ensured technique and quality as well as liaised related agencies to resolve difficulties for the project progress.
Mr. Quan expressed that WB will continue finance the city for future projects; for instance, Bus Rapid Transit along 25 kilometer avenue Vo Van Kiet-Mai Chi Tho project for modern traffic system for the city; Tham Luong-Ben Cat-Nuoc Len canal project to eliminate flooding and environment improvement for districts 8, 12, Binh Tan, Tan Phu, Tan Binh, Go Vap, Binh Thanh and Binh Chanh.