VietNamNet Bridge - The State Bank of Vietnam (SBV) and the World Bank yesterday signed a Development Credit Agreement (DCA) worth US $125 million and a Policy and Human Resources Development (PHRD) grant worth US $4.6 million for a project to improve sanitation conditions in three coastal cities of Nha Trang, Quy Nhon and Dong Hoi.

The credit, provided by the International Development Association – the World Bank’s concessional fund for low-income countries – will be used to reduce flooding and improve the collection of sewage in the three cities through the construction of new sewers and drainage systems. Wastewater currently discharging into groundwater, rivers or the sea will be transferred to a number of new wastewater treatment plants to be built under the project. At the same time, new landfill sites will be constructed or older ones upgraded or expanded so that the quality and quantity of solid waste collection and disposal significantly improves.

Addressing the signing ceremony, Governor of the State Bank of Vietnam, Le Duc Thuy said  “Vietnam has recorded notable socio-economic development recently. However, investment in infrastructure, especially drainage, sewerage and waste treatment systems, can not meet the fast pace of development in provinces and cities. Therefore, investment in the construction of these systems is very urgent”.

World Bank’s Acting Country Director Martin Rama said that “As Vietnam grows and more and more people move to the cities, the environmental pressure on the urban environment is also growing. This project will play an important part in the government’s plan to improve urban sanitation standards throughout the country.”

About $2million of project funds will be made available for each city to build improved toilet facilities in schools and to provide small loans to householders for the construction of home sanitation facilities.

The PHRD grant, provided by Japanese Ministry of Finance, will be used to build the capacity of local wastewater and solid waste service providers and raise public awareness of the project.

The World Bank is also mobilising grant funding from the Global Environment Facility (US $5 million) for the demonstration of appropriate new wastewater treatment technology in Quy Nhon.

(Source: Nhan Dan)