The World Bank and the State Bank of Vietnam signed a USD560m loan on July 11, intended to support modern infrastructure development and climate change adaptation in the Mekong Delta region.
World Bank and the State Bank of Vietnam signed a USD560m loan on July 11
The International Development Association, the World Bank’s fund for the poorest, is providing USD310m the Mekong Delta Integrated Climate Resilience and Sustainable Livelihoods and USD125m for developing Can Tho City. The International Bank for Reconstruction and Development will provide an additional USD125m for Can Tho City.
According to the planning, the project aims to improve transport connections between Can Tho city centre and outlying urban areas, upgrade the sewer system and help improve disaster risk management capacity. It is estimated that 420,000 citizens will benefit from this project.
USD310m the Mekong Delta Integrated Climate Resilience and Sustainable Livelihoods project will be used to promote climate change adaptation on community experience for 1.2 million people living in nine provinces that are directly affected by saltwater intrusion, flooding and coastal erosion.
Achim Fock, the World Bank’s Acting Country Director for Vietnam said severe weather conditions had caused negative impacts on people's lives in both cities and rural areas, especially the poor. The project will improve planning acity and management for the local authorities related to land and water sources.
In addition, farmers working in the coastal areas and the upstream of the delta, including Khmer ethnic group, will be direct benefactors.
The project is an important part of the World Bank’s long-term engagement in the Mekong Delta to strengthen integrated adaptive delta management by bringing together the different sectors and provinces to plan and implement resilient investments.