WB helps Vietnam improve transportation

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

The project will focus on flood prevention, construction of drainage, wastewater treatment plants, school sanitation and public toilets, and solid waste management. It will also establish a revolving fund for building wastewater pipes from households to public wastewater treatment systems. It will improve priority roads and bridges along canals, drains and rivers, thereby strengthening transport connectivity and relieving traffic pressure. The project will also deal with institutional and sustainability enhancement issues.

WB Country Director for Vietnam Ousmane Dione said Vietnam is undergoing rapid urbanization and therefore, an integrated approach to the development of transport, water, and sanitation services is vital to its sustained growth and environmental protection. This was why the WB decided to provide this credit to Vietnam.

According to Ousmane Dione, the credit is part of the WB’s commitment in the Vietnam 2035 Report to cooperate with and assist Vietnam in promoting efficient and effective socioeconomic development.

The remaining nearly US$80 million is an IDA credit for the Northern Delta Transport Development Project. It will finance the construction of a canal linking 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 Ninh Binh Province. The new canal is expected to facilitate economic activities by reducing logistics costs, and to mitigate the risks of climate change by reducing the emission of greenhouse gases incurred in freight transportation.

Together with other inland waterway facilities 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 tonnes in capacity, facilitating socioeconomic development in northern delta localities.

The Ministry of Transport predicted that Vietnam will need more than VND1,000 trillion to invest in transport infrastructure in the 2016-2020 period. In the context of limited state budget, difficult capital mobilization, and private investment concentrated mostly in the construction of roads, the WB’s credit for Vietnam is of great significance. It will help Vietnam improve transport
infrastructure to create a better investment environment and promote socioeconomic development.