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Vietnam Today

World Bank approves $194.36mn credit

Released at: 11:06, 12/06/2019

World Bank approves $194.36mn credit

Photo: Viet Tuan

Funding to support Dynamic Cities Integrated Development Project in four secondary cities in Vietnam.

by Ngoc Lan

The World Bank Board of Executive Directors approved a $194.36 million credit on June 12 to help the Dynamic Cities Integrated Development Project in four secondary cities in Vietnam, under which critically-needed infrastructure will be built and urban planning strengthened.

The project aims to increase access to better services in the four urban centers of Ky Anh in north-central Ha Tinh province, Tinh Gia in north-central Thanh Hoa province, Hai Duong in northern Hai Duong province, and Yen Bai in northern Yen Bai province.

The total cost of the project is $276.17 million, of which $194.36 million will come from the International Development Association (IDA). Approximately 200,000 residents are expected to benefit directly from project activities. In Vietnam, secondary cities are broadly defined as cities with populations ranging from 100,000 to 500,000.

The project will help reduce flood risks, improve sanitation, reduce travel time on new and improved roads, and develop high-quality public spaces. It will also bolster connectivity to industrial parks, export processing zones, commercial establishments, and tourist attractions, benefiting workers and merchants as well as visitors. These improvements in turn are expected to help boost productivity, enable exports, create more jobs, and help generate sustained economic growth.

Mr. Ousmane Dione, World Bank Country Director for Vietnam, said secondary cities are set to play an increasingly important role in Vietnam’s growth poles through the efficient movement of goods, people, services, and information. “These four selected cities have demonstrated significant potential to become dynamic economic hubs at the provincial and regional levels,” he added. “This operation will help fill the infrastructure gap by providing much-needed financing to deliver quality services based on lessons and best practices gained from World Bank engagements in other cities around the world.”

A major problem in these cities is uneven access to basic services, including drainage systems, wastewater collection and treatment, and road networks. This has resulted in increasing traffic congestion, flooding, and the deterioration or lack of public spaces. In addition, all four cities are either located along the coastline or in mountainous areas, making them vulnerable to disaster risks and the impacts of climate change.

The project helps address these problems with both structural and non-structural support, including a series of infrastructure investments in each city and technical assistance to strengthen their capacity to adopt a comprehensive and integrated urban planning approach that links physical development to long-term socioeconomic strategies, climate change adaptation, and disaster risk management plans.

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