Hanoi, June 23, 2018—The World Bank’s Board of Executive Directors yesterday approved an International Development Association (IDA)* Credit in the amount of US$80 million to improve the quality of key urban infrastructure, including transport connectivity, drainage and sewer systems, public spaces and preschools in Thai Nguyen City, in North East Vietnam. The funding will also support improvements in the city’s urban planning and management, including climate change and disaster risk considerations.
The Dynamic City Integrated Development Project will directly benefit more than 81,000 residents of Thai Nguyen City by reducing travel time through improved transport connectivity; and enhancing urban environmental sanitation through improved drainage and sewer system, particularly in flood-prone areas. The project will also improve child care services through new and rehabilitated kindergartens and quality of life though improved public spaces. The project will help Thai Nguyen city improve local authorities’ capacity by providing technical assistance for integrated strategic urban planning, public transport planning and sustainable asset management.
“As one of the key centers and economic engines of the Northern Mountainous Region, Thai Nguyen City is undergoing rapid urbanization, and thus urgently needs improved urban infrastructure services,” said the World Bank Country Director to Vietnam, Ousmane Dione. “The proposed project is expected to not only support the city in improving basic infrastructure but also help the city to develop a comprehensive and integrated urban plan that links physical development to overall improvements to socio-economic conditions. The successful implementation of this project may be replicated to other medium cities in support of the Government’s urban development agenda.”
The Vietnam National Urban Development Master Plan envisages the development of secondary cities as hubs to drive development within larger urban areas and provinces. This is consistent with international experience, where there is growing recognition of the role of secondary cities as catalysts for economic activity and development.
Thai Nguyen City is one of the cities proposed by the Government of Vietnam to receive support based on their economic growth potential. The Project is consistent with the World Bank’s Country Partnership Framework as it will contribute to strengthening urban planning and management, support resilient urban infrastructure investments, and improve disaster risk management.
The total project costs are estimated at US$100 million, of which US$80 million will be financed by the Transitional Support Window of IDA and US$20 million will be counterpart funding from the provincial government.