WASHINGTON, December 23, 2014—The World Bank’s Board of Executive Directors today approved US$450 million in loans and credits to the Socialist Republic of Vietnam for the Second Ho Chi Minh City Environmental Sanitation Project. The 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.
Ho Chi Minh City (HCMC) is emerging as a major city in Southeast Asia and is a hub of economic activities in Vietnam, contributing to about 20 percent of the country’s total GDP. To maintain its competitive position and provide quality services to its citizens, HCMC plans to develop its water-related infrastructure to increase the supply of drinking water for the growing population, protect the city from floods, and improve the environment and reduce health risks by collecting and treating wastewater.
“The Bank has a long standing and strategic partnership with HCMC. Through this new project, the city will be able to address its sanitation challenges in a more cost effective manner and create a city that is clean and competitive,” said Victoria Kwakwa, World Bank Country Director for Vietnam. “Improved urban sanitation services benefit all citizens, especially the poor. This project will ensure that the poor in the project areas are well served by having household connections to the sewer network,” she added.
The project will benefit about 1.1 million people in the city and includes a waste water treatment plant that will treat wastewater collected in the Nhieu Loc-Thi Nghe (NLTN) basin and from parts of District 2 of the city. The plant will treat untreated wastewater that is currently being discharged to the Saigon river. Through the project, sewer networks and house connections to the network will be installed in parts of District 2. The project will also provide technical assistance to improve sanitation and wastewater management practices in the city.
“The project promotes better sanitation practices in HCMC and also supports the urban development of the city through improved wastewater management,” said Sudipto Sarkar, World Bank Lead Specialist and task team leader. “Under the project an Environmental Learning Center will be created to raise awareness of sanitation issues and the environment that will benefit the people of the Ho Chi Minh City,” he added.
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.