One Million Vietnamese to Benefit from Better Transport and Sanitation Infrastructure

May 5, 2017

Washington, May 5, 2017 –The World Bank’s Board of Executive Directors approved today US$315 million in financing to improve water transport infrastructure in northern Vietnam, and sanitation and transport services in coastal cities in central Vietnam.

Of the total approved funding, US$236 million will be directed to the Vietnam Coastal Cities Sustainable Environment Project, with US$ 190 million from the International Development Association (IDA) and US$ 46 million from the International Bank for Reconstruction and Development (IBRD). It will be implemented in the coastal cities of Dong Hoi, Quy Nhon, Nha Trang, and Phan Rang – Thap Cham, and expected to benefit around 1.1 million residents.

Investments under the Vietnam Coastal Cities Sustainable Environment Project will focus on flood reduction; drainage and wastewater collection networks; waste water treatment plants, school sanitation and public toilets; revolving funds for household connections and solid waste management. It will also improve priority roads and bridges along canals, drains, and rivers, thereby strengthening connectivity and relieving traffic pressure. Relevant institutional arrangements and sustainability aspects will also be comprehensively addressed and enhanced though the project implementation.

 “Given Vietnam’s rapid urbanization, an integrated approach to the development of transport, water, and sanitation services is vital to sustained growth, as is strong environmental protection,” says Ousmane Dione, the World Bank Country Director for Vietnam. “As highlighted in the Vietnam 2035 report, we are strongly committed to the partnership with Vietnam to deliver solutions efficiently and effectively.”

The remaining US$78.74 million is an IDA credit that will support the Northern Delta Transport Development Project. It will finance the construction of a canal to connect the Day and Ninh Co rivers with a navigational lock to improve freight vessel access to Ninh Phuc port, the main inland waterway port in the Ninh Binh region. Construction of the canal is expected to facilitate economic activity by reducing logistics costs, and to mitigate the risks of climate change by reducing the emission of greenhouse gases incurred in freight transportation.

In conjunction with other inland waterway infrastructure investments already financed under the project, the Day-Ninh Co canal will complete a through-corridor for seagoing vessels between the estuary of the Ninh Co River and Ninh Phuc port. This will enable round-the-clock waterway access to vessels up to 3,000 tons in capacity to service this important transport network. 


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