WASHINGTON, D.C., June 5, 2014 – Seven cities in the Northern Mountains of Vietnam, a lagging region with the highest concentration of extreme poverty in the country, will participate in a new performance-based program to strengthen their capacity as engines of regional economic growth.
The World Bank’s Board of Executive Directors approved today a US$250 million credit to fund the Results-Based National Urban Development Program in the Northern Mountains Region (RBNUDP-NM) using an innovative approach to financing that links funds directly to results.
“The growing urban centers in Vietnam’s Northern Mountains region play a key role in local area development, serving as economic and administrative hubs, commercial centers for regional or cross-border trade,” said Victoria Kwakwa, World Bank Country Director for Vietnam. “Sustainable urban planning and development of these cities offers a significant opportunity to reduce poverty and realize more inclusive growth in this lagging region.”
Cities participating in the Program will receive funds for specific measures to enhance their management capacity and for developing local infrastructure such as roads, bridges and drainage, as well as for upgrading low-income areas. The Ministry of Construction will coordinate and oversee the Program and provide technical assistance to the participating cities.
The World Bank’s financing instrument called the Program for Results or PforR links disbursements of funds directly to the delivery of verifiable results. This is the second PforR in Vietnam approved by the Bank. The funding for this program comes from the International Development Association, the World Bank Group’s financing arm for low-income countries.