World Bank grants Vietnam $119 million loan to support water supply projects

By    May 27, 2016 | 01:06 am PT
Vietnam has been offered funding by the World Bank to tackle major urban development challenges focused on clean water supply and wastewater treatment.

The loan will finance the Vietnam Urban Water Supply and Wastewater Project, which started in 2011 and sponsors seven water supply and seven wasterwater subprojects across 10 provinces.

The funds will come in two tranches: $50 million from the International Development Association, the World Bank Group’s concessional financing window for low-income countries, and another $69 million from the International Bank for Reconstruction and Development, the World Bank Group’s lending arm for middle-income countries.

The World Bank has not provided specific information on lending interest rates, a loan repayment schedule or when the funds will be made available.

“We are very pleased to see this additional financing approved by our board of directors,”said Achim Fock, the World Bank’s acting country director for Vietnam. 

“With this, achievements under the original project will be further consolidated and sustained, and more people in southern Vietnam will enjoy better wastewater and drainage services,” he added.

The additional financing is expected to help improve wastewater treatment and drainage in the southern province of Binh Duong. 

It will also cover cost overruns due to the appreciation of the dollar, and provide technical support for the Ministry of Construction to plan new water supply projects in the Mekong Delta.

It is estimated that an additional 500,000 people living in rural areas will gain access to clean water thanks to the loan, and about 300,000 urban dwellers will benefit from improved sanitation.

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