The State Bank of Vietnam (SBV) and the World Bank (WB) signed on March 12, 2015 agreements for a total of USD 450 million in loans and credits to further improve Ho Chi Minh city’s environment and sanitation. Attending the signing ceremony were SBV Governor Nguyen Van Binh and WB Country Director in Vietnam Victoria Kwakwa.
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 Project is also aiming at promoting economic growth, support urban development including flood risk management and improving urban services.
“The city authorities’ vision is to provide quality services to its citizens to maintain the city’s competitive position. The Bank has a long standing strategic partnership with HCMC to promote economic growth, support urban development including flood risk management and improving urban services. “said Victoria Kwakwa, the World Bank Country Director to Viet Nam. “The project supports this goal, and is fully in line with our engagement with the city. It is expected to further promote shared prosperity of this major economic and business hub of Vietnam. It will also increase the quality of life for about 1.3 million city residents.”
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 and will provide technical assistance to improve sanitation and wastewater management practices in the city.
“We place emphasis on both improved wastewater treatment infrastructure and management, as well as awareness raising to bring about a sustainable liveable urban environment” said Sudipto Sarkar, World Bank Lead Specialist and task team leader. “Thus, an Environmental Learning Center will be established to raise awareness of sanitation issues and the environment that will benefit the people of the Ho Chi Minh City.”
The total project cost is US$495 million, of which US$250 million will be 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 US$45 million from its own resources for the project.
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