Pham Minh Tan, director of the provincial Construction Investment Project Management Board, said the project would receive more than VND 4.1 trillion in World Bank loans, with over VND 1.42 trillion in domestic counterpart funding.
The project covers five areas: water supply, flood control and drainage, wastewater treatment, land clearance and compensation, and management capacity.
Major works are planned for 2028-2033, including a water transfer system from Song Than Reservoir in Ninh Son Commune to Ca Na and Mui Dinh, and embankments along both banks of the Cai River.
The project also includes improvements to flood drainage along the Lu and Quao rivers and Cha La and Tan Hoi canals, alongside upgrades to urban drainage and expanded wastewater collection and treatment networks.
At a recent meeting with provincial authorities, World Bank senior social development specialist Gerhardus Nicolaas Albertus Soppe urged Khanh Hoa to assess the project's benefits carefully and allocate investment resources accordingly.
World Bank specialists also called for comprehensive environmental and social assessments, clear management responsibilities and sustainable operating arrangements for wastewater infrastructure.
They stressed the need for public consultation, accurate identification of affected households and appropriate resettlement plans to avoid delays and protect residents' interests.
The specialists said the project should address not only infrastructure construction but also the long-term integration of water collection, treatment, distribution and management systems.
Trinh Minh Hoang, vice chairman of the Khanh Hoa People's Committee, said southern areas of the province had faced growing challenges from climate change, water shortages, flooding and erosion.
He said the project was expected to improve water supplies for households, agriculture and industry while strengthening flood protection and environmental management.
Hoang instructed relevant agencies to review existing reservoirs, refine project designs, clarify operating responsibilities and resolve technical and land clearance issues.
He also called for transparent compensation and resettlement procedures and tighter cost controls to prevent construction delays.
According to provincial authorities, the Ministry of Finance has received the project's loan proposal and is preparing to submit it to the government. Approval could be considered in early November 2026.
Southern Khanh Hoa, formerly Ninh Thuan Province, has previously benefited from several internationally financed water and environmental projects.
These include the USD 97.9 million Phan Rang-Thap Cham subproject under the Coastal Cities Sustainable Environment Project, supported by USD 69.5 million in World Bank financing.
Implemented from 2017 and inaugurated in November 2024, the project involved drainage improvements, embankments, resettlement facilities and wastewater treatment upgrades.
Another project, launched in November 2013 with EUR 9.5 million in funding, including EUR 8 million from Belgium, focused on integrated water resource management and climate adaptation.
Although these investments have improved wastewater collection and treatment, some facilities remain underused because household connections and collection networks have not been fully expanded.
Water pollution in canals and drainage channels also persists, while fragmented management arrangements continue to limit the effectiveness of existing infrastructure.