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WB finances USD 710 million for 3 projects in Vietnam
Governor Nguyen Van Giau of the State Bank of Vietnam (SBV) and Ms. Victoria Kwakwa, Country Director of the World Bank (WB) in Vietnam, signed in Hanoi on July 13 the financing agreement and related legal documents for 3 projects, namely the Urban Water Supply and Wastewater Project, the Second Public Investment Reform Operation Program, and the Mekong Delta Water Resources Management for Rural Development Project with the total value of USD 710 million.
Under the agreement, the Urban Water Supply and Wastewater Project is worth USD 287.15 million, of which WB loan is USD 200 million from IDA, the counterpart fund is USD 87.15 million . The objective of the project is to increase people’s access to sustainable water services and environmental sanitation in selected urban areas in project provinces. The project will be implemented within 5 years (2011 – 2016) in the provinces of Quang Ninh, Ninh Binh, Nghe An, Thanh Hoa, Quang Tri, Quang Nam, Kien Giang, Lam Dong, Binh Duong, and Binh Phuoc. The Ministry of Construction and the Ministry of Planning and Investment will support the project management and development.
The Second Public Investment Reform Operation Program is worth USD 350 million, of which IDA loan is USD 262.7 million and IBRD loan is USD 87. 3 million. This program focuses on such fields as environmental review for the infrastructure investment project from the public fund; environmental management; and project preparation and evaluation, bidding, public financial management, legal framework for private sector participation in infrastructure investment, and monitoring and assessing of project. The public investment reform program will help the Vietnamese Government to have more resources to carry out economic stimulus measures as well as the follow-up public investment programs, aimed at maintaining sustainable development.
The loan for the Mekong Delta Water Resources Management for Rural Development Project totals USD 206.6 million, of which IDA loan is USD 160 million and the counterpart fund is USD 46.6 million. The project is to protect and improve the efficiency of water use in the Mekong Delta to boost agricultural productivity in a sustainable manner, and improve the water supply for households in rural areas.
Ms. Victoria Kwakwa , WB Country Director in Vietnam , said that the financing for the three projects is to enhance the efficiency of public investment. In addition , she added, the signing of the agreement contributes to the water supply and coping with climate change.
For his part, on behalf of the Government, Governor Nguyen Van Giau highly appreciated WB’s support in the public investment reform as well as the development and improvement of water supply and wastewater services in Vietnam . The Governor also confirmed that WB’s support would contribute to the socio-economic development, poverty reduction and improvement of the quality of life for people in Vietnam .
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