1.7 million Vietnamese in rural communities to gain access to safe water with new World Bank financing linked to delivery of results
November 1, 2012
WASHINGTON DC, November 1, 2012 – Safe clean water for 1.7 million people, improved sanitation for 650,000 people --- these are the services that Vietnamese in 8 provinces in the Red River Delta will receive through the government’s National Target Program (NTP) for Rural Water Supply and Sanitation. The World Bank’s Board of Executive Directors approved today a US$ 200 million IDA credit to fund the ongoing program, using an innovative new approach to financing which links funds directly to results, ensuring that benefits will be delivered to people in need.
”Vietnam has made impressive progress in economic growth and poverty reduction, but more needs to be done to reduce rural poverty,” said Victoria Kwakwa, World Bank Country Director for Vietnam. “Better access to safe water and sanitation, delivered by the government using our new financing instrument, will help ensure that the quality of life for people in rural communities improves, which is important for sustainability and equity of growth in Vietnam.”
Access to sustainable water supply and sanitation services in rural areas of Vietnam is low, and water quality is a problem in the Red River Delta region.
Improved sanitation and better access to safe water brings important health benefits as well. In addition, the program will support the strengthening of institutional systems, improve sector planning, and monitoring and evaluation in participating provinces. For the first time in the country, the State Audit of Vietnam will carry out independent verification of Program results.
The program will strengthen governance systems for results-based service delivery as well as gender-based monitoring and reporting, two key components of the World Bank Vietnam Country Partnership Strategy 2012 – 2016.
The World Bank’s new financing instrument called the Program for Results or PforR links disbursements of funds directly to the delivery of verifiable results. This program is the first PforR to be approved by the Bank in the East Asia and Pacific region and the first in the rural water supply and sanitation sector.