The project has a total investment of over VND258 billion (US$12.25 million) funded by the Indian government and State budget.
The project aims to drain water from 5,367ha of land including 2,160 ha of farm and aquaculture land in 12 communes and towns in Phu Ninh district and in Viet Tri city.
Construction of the project is being carried out by India's Kirloskar Brothers Limited and is expected to be completed by the end of 2016.
Upon its completion, the project will ensure the active drainage in localities in the project area, helping curb environmental pollution and boosting the local economy.
Speaking at the ceremony, Vice Chairman of Phu Tho provincial People's Committee Hoang Cong Thuy said the project is significant to agricultural production and the lives of local residents, as well as important to socio-economic development of the locality and Phu Tho province, asking authorised agencies to facilitate the implementation of the project.
He also thanked the Indian government and the Indian Embassy in Vietnam for their support and hoped for more joint projects in the future.