The World Bank has approved a total of US $522 million in credit for Vietnam’s urban, energy, and forestry development projects which are part of the new partnership strategy for the 2011-2016 period between Vietnam and the World Bank.
The three projects are the Mong Delta region urban upgrading Project, the second power sector reform development policy operation, and the forest sector development project – additional financing.
Ms. Victoria Kwakwa, World Bank Country Director, said the projects are intended to address emerging issues caused by quick urbanization, develop an effective energy sector to meet the increasing demand for power to support rapid growth, and raise the awareness of the importance of sustainable management of forest resources to help rural residents get rid of poverty.
Specifically, the urban development project will help improve infrastructure and services for over 1.5 million in six cities namely Can Tho, My Tho, Cao Lanh, Ca Mau, Rach Gia, and Tra Vinh.
It is estimated that about 275,900 low-income residents in the cities will benefit directly from improved roads, drainage, water supply, canals, sanitation, public facilities and power supply.
The bank's International Development Association (IDA) will fund this project with US $292 million.
The second power sector reform development policy operation is one of three policy operations that support the Government in implementing reforms in the power sector to facilitate and promote effective competition in power generation; transparency and predictability in electricity pricing and tariffs; encourage investment in power generation; and implement programs and incentives for efficient use of electricity.
The project has total investment of US $200 million, half of which comes from IDA, and the other half from the International Bank for Reconstruction and Development.
The Forest Sector Development Project aims to promote sustainable smallholder plantation forestry to help raise rural incomes and support biodiversity conservation across Vietnam’s priority conservation areas.
The project supports the National Forestry Strategy through restoring and increasing forest cover, promoting market-based approaches to forestry, increasing roles and responsibilities of local forest owners, strengthening protected areas management and conserving biodiversity with the involvement of local communities.
Under the Additional Financing operation, IDA will provide an additional US $30 million over three years to the project covering six provinces in the central coastal region of Vietnam./.