US$450 million to finance improval of living conditions in HCM City

The State Bank of Vietnam and the World Bank signed agreements today for a total of US$450 million in loans and credits to further improve Ho Chi Minh City’s environment and sanitation.

Nhieu Loc-Thi Nghe Canal in Ho Chi Minh City
Nhieu Loc-Thi Nghe Canal in Ho Chi Minh City

The funding, which is reserved for the second Ho Chi Minh City environmental sanitation project, will improve the environment by treating wastewater, strengthen institutional capacity to manage sanitation and wastewater services, and increase public awareness on the benefits of improved sanitation practices.

The improvements to environmental sanitation to be funded under the project will increase the quality of life for about 1.3 million residents, stated Victoria Kwakwa, World Bank Country Director to Vietnam.

The project includes a waste water treatment plant that will treat wastewater collected in the Nhieu Loc-Thi Nghe basin and from parts of District 2. The plant will treat wastewater that is currently being discharged into the Saigon River.

Through the implementation of the project, sewer networks and residential connections to the network will be installed in parts of District 2. The project will also provide technical assistance to improve sanitation and wastewater management practices in the city.

The total project cost is estimated at US$495 million, of which US$250 million will be financed through a loan from the International Bank for Reconstruction and Development (IBRD) and a US$200 million credit through the International Development Association (IDA).

HCMC will provide US$45 million from its own resources for the project.