Additional financing to the Vietnam Urban Water Supply and Wastewater Project will mostly be used for a wastewater and drainage sub-project for Binh Duong province.
An additional 65,872 households with 450,382 people will be connected to clean water sources as a result of extra financing from the World Bank, according to its latest report released on May 27.
The World Bank’s Board of Executive Directors approved $119 million in additional financing for an ongoing project to respond to key urban development challenges focusing on assuring water supply and wastewater needs in selected urban areas in Vietnam.
The additional financing for the Vietnam Urban Water Supply and Wastewater Project will mostly be used for a wastewater and drainage sub-project in southern Binh Duong province.
It will also cover cost overruns due to the appreciation of the dollar and provide technical support to the Ministry of Construction to prepare a new water supply investment in the Mekong Delta.
Another 312,000 urban dwellers will benefit from improved sanitation under the project.
“We are very pleased to see this additional financing approved by our Board of Directors,” said Mr. Achim Fock, the World Bank’s Acting Country Director for Vietnam. “With this, achievements under the original project will be further consolidated and sustained, and more people in Binh Duong will enjoy better wastewater and drainage services.”
The additional financing includes a credit of $50 million from the International Development Association (IDA), the World Bank Group’s concessional financing window for low-income countries, and a loan of $69 million from the International Bank for Reconstruction and Development, the World Bank Group’s lending arm for middle-income countries.
The original project, which was approved by the World Bank Board in May 2011, sponsored seven water supply and seven wastewater sub-projects in ten provinces with an average population of 100,000 in their urban centers.